Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Gabelli Funds 33rd Annual Pump, Valve & Water Systems Symposium (February 2023)
16 slides from Enerpac Tool's conference presentation, Feb 23, 2023
Slide 1: Raising the Bar
RAISING ENERPAC THE BAR TOOL GROUP |
Slide 2: Forward-Looking Statements and Non-GAAP Measures
Forward-Looking Statements and Non-GAAP Measures Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. The terms “may,” “should, ”“could,” “anticipate,” “believe,” “estimate
Slide 3: Enerpac Offers Strong Investment Potential
Enerpac Offers Strong Investment Potential 01 02 03 04 05 Leading High Gross Enhanced Organic Strong Updated Solutions Provider Margin Profile Growth Strategy Balance Sheet Financial Goals With a Broad Portfolio With Pathway Targeting Market to Support Both Organic and Reflect Management’s of Produc
Slide 4: Premier Industrial Solutions Provider
Premier Industrial Solutions Provider Making Complex and Often Hazardous Jobs Possible Safely and Efficiently $571M Global Headquarters Menomonee Falls, WI FY2022 Revenue $83M FY2022 Adj. EBITDA* 110+ Years of History 100+ ~2200 ~1000 ~$1.4B Countries Served Global Employees Distributors Market Cap*
Slide 5: New Mission Reflects Core Capabilities
New Mission Reflects Core Capabilities OUR OUR STRATEGIC MISSION VALUES PILLARS WE MAKE SAFETY TEAMWORK HARD TO DO COMPLEX, OFTEN HAZARDOUS TARGET MARKET JOBS POSSIBLE INTEGRITY AGILITY LEADERSHIP SAFELY AND SIMPLIFIED AND EFFICIENTLY OWNERSHIP STANDARDIZED PROCESSES AND OPERATIONS 5
Slide 6: Globally Recognized Leader in Industrial Tools and Services
STRONG BRAND RECOGNITION Globally Recognized Leader in Industrial Tools and Services PREMIUM INDUSTRIAL TOOLS Revenue Mix HEAVY LIFTING PRODUCTS SERVICE 20% AND RENTAL Cylinders/Jacks, Pumps, Bolting Tools, Presses, Bolting, Machining Pullers, Tools, Heavy and Joint Integrity Lifting Technology (HLT
Slide 7: Enerpac's Competitive Advantage
STRENGTH BREADTH AND OF BRAND DEPTH OF PRODUCT QUALITY, PORTFOLIO DURABILITY, RELIABILITY, Enerpac’s SAFETY Competitive Advantage BREADTH OF CHANNEL PARTNER NETWORK TECHNICAL AND GLOBAL APPLICATIONS COVERAGE EXPERTISE THAT CUSTOMERS RELY UPON POSITIVE CUSTOMER/ DISTRIBUTOR EXPERIENCES 7
Slide 8: Serving Broad Array of Vertical End Markets
INFRASTRUCTURE/ MANUFACTURING CIVIL CONSTRUCTION & MACHINING INDUSTRIAL MRO Serving Broad OIL & GAS Array of Vertical POWER GENERATION End Markets MINING (WIND/NUCLEAR) Large, Fragmented Vertical RAIL Markets Provide Growth MILITARY Opportunities, Both Organic and Inorganic, and Create Diversificati
Slide 9: Offering a Wide Array of Durable and Reliable Products
Offering a Wide Array of Durable and Reliable Products Pumps Cylinders Bolting Pullers Spreaders Cutters Presses Work Holding Heavy Lifting Machining 9
Slide 10: Providing High Quality Services Our Customers Rely On
Providing High Quality Services Our Service Customers Rely On BOLTING Breakdown Primary Focus on Repairs and Maintenance ~50% ~50% Large Opportunity in Niche Services including Specialty MACHINING High Margin Services Additional Opportunities in Rental Manpower Power Generation, Wind, Rail and Indus
Slide 11: Extensive Global Footprint
Extensive Global Footprint 24% EUROPE 14% MIDDLE EAST* SALES OF 9% ASIA $571M IN FISCAL 2022 4% S. AMERICA 4% MEXICO/CANADA 5% AUSTRALIA 40% UNITED STATES GLOBAL PLANT OFFICE OTHER HEADQUARTERS Manufacturing/Assembly Sales Office/General Office Service Center/Warehouse/Other OUR GLOBAL FOOTPRINT ALL
Slide 12: Transformative Plan to Power Performance
Transformative Plan to Power Performance ACCELERATE IMPROVE DRIVE GREATER ORGANIC GROWTH OPERATIONAL EFFICIENCY & GO-TO-MARKET EXCELLENCE PRODUCTIVITY STRATEGIES AND PRODUCTION IN SG&A EFFICIENCY HUNDREDS OF INITIATIVES FULL-TIME PROGRAM MANAGEMENT Across all Functions and Regions On Track to Delive
Slide 13: Balanced Capital Allocation Strategy
Balanced Capital Allocation Strategy Invest in Ourselves Disciplined M&A Investments in Digital, Product Innovation, R&D, Operational Excellence Improvements Maintain Our Strong Opportunistically Balance Sheet Returning Capital Target Leverage of to Shareholders 1.5x – 2.5x Board Recently Authorized
Slide 14: Path to Profitable Organic Growth in FY26
Path to Profitable Organic Growth in FY26 +Potential Upside from >100% Disciplined M&A >25% 6-7% Organic Adj. EBITDA Margin of 25% as We Exit FCF Conversion Toward End of Revenue CAGR* FY24 Through ASCEND, With 50bps Outlook; Lower in Earlier Years Improvement in Subsequent Years due to ASCEND Costs
Slide 15: Durable Business Model Provides Stability and Fuels Strategic Priorities
Durable Business Model Provides Stability and Fuels Strategic Priorities Resilient, Cash-Generative Business Model FY26 TARGETS Continued Focus on Margin Improvement >25% Adj. EBITDA Margin 6-7% Organic Balanced Capital Revenue CAGR* Allocation Strategy >100% FCF Conversion Proven Ability to Maintai
Slide 16: New Team, New Mission, New Plan
Premier Industrial Solutions Provider Serving a Broad and Diverse Set of Customers Globally New Team Defined Organic Growth Strategy Focused on Maximizing Shareholder Value and New Mission Capitalizing on Global Macro Trends New Plan Transformation Plan to Elevate Performance, Create Resiliency and