EnerSys · NYSE:ENS

EnerSys — Investor Presentation (November 2022)

36 slides from EnerSys's investor presentation, November 2022

Slide 2: Forward Looking Statements
Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management’s current expectations and views regarding future events and operating performance and are subject to uncertainties and changes in circumstances. Our actual re
Slide 3: Key Takeaways
Key Takeaways We are a global Industrial Technology company delivering ✓ highly differentiated Energy Solutions to Diverse End Markets Our Proprietary Technologies and Services play a critical role ✓ in the energy transition fueled by Megatrends Our Resilient Business Model positions us well to Capt
Slide 4: EnerSys at a Glance (NYSE: ENS)
EnerSys at a Glance (NYSE: ENS) L EAD IN G PR O VID ER O F D IF F ER EN T IAT ED EN ER G Y SO L U T IONS $3.4bn1 7.9%1 $4.471 ~11.4k1 10k+1 22%1 Sales Adj. Operating Margin Adj. Diluted EPS Total Employees Customers Market Share2 FY’22 SALES BY GEOGRAPHY GLOBAL FACILITY BASE3 Asia 7% EMEA 24% Americ
Slide 5: Technology Driven Portfolio Transformation
Technology Driven Portfolio Transformation 2010 2022 ▪ Traditional lead acid ▪ Integrated technology Growth Opportunities battery company solutions across energy ▪ Expand capacity for storage, power & premium products electronics, and software ▪ Grow Motive Power ▪ Narrow set of end markets & servic
Slide 6: Leveraging Our Platforms Across All Segments
Leveraging Our Platforms Across All Segments 3 Core Technology Platforms 3 Business Segments 8 End Markets Telecom Networks Energy Systems Broadband Cable Power Industrial Power and Utilities Electronics Energy Renewable Energy Storage Motive Power Premium (Flooded, TPPL, Data Centers Lithium-ion) E
Slide 7: Technology to Meet Customer Needs
Technology to Meet Customer Needs Lithium-ion • Edge computing, efficient data collection to the cloud • Maintenance-free, longer cycle life, fastest charge rate • Asset management software Software • Innovative safety technology • App support to manage health of assets • Ideal for use cases requiri
Slide 8: Technology Advancements
Technology Advancements POWERING THE FUTURE, EVERYWHERE FOR EVERYONE CPUC Network Powering Program Specialty Batteries Fast Charge & Storage Advancing both TPPL and Lithium modules Making history with specialty solutions NexSys® TPPL and Li-ion Options TouchSafe Maintenance free & wireless solutions
Slide 9: EnerSys Lines of Business
EnerSys Lines of Business A GLOBAL LEADER IN STORED ENERGY Energy Systems Motive Power Specialty $1.5B FY’22 Revenue $1.4B FY’22 Revenue $0.5B FY’22 Revenue Energy Systems focuses on the Motive Power batteries are Specialty segment provides energy telecommunication and broadband, utilized in electri
Slide 10: Our Sustainability Journey
Our Sustainability Journey July 2021 December April 2022 2H 2020 2021 Published 2H 2022 Launched 2025 Established full-time Published inaugural GRI and Planned inaugural Deadline for 2021 diversity Sustainability Team; joined supplemental SASB-aligned publication of diversity and employer recognitio
Slide 11: Our Sustainability Strategy
Our Sustainability Strategy $ 4 M A N N U A L C A P I TA L A L L O C AT I O N O V E R T H E N E X T 5 Y E A R S Our Progress to Date Future Aspirations 1 ■ Detailed tracking of key environmental metrics including Scope 1 & 2; Scope 3 emission ■ Targeting 25% reduction in energy intensity by 2030 (vs
Slide 13: Q2'23 Results
Q2’23 Results ($ millions, except EPS) Q2’23 Key Takeaways • Second highest quarterly revenue (in a seasonally slow Q2) Net Sales $899 • +19% y/y at Constant Currency “CC” (Y / Y Growth) 13.7% • ~($45M) y/y FX pressure • TPPL revenue approx +30% y/y Adj. Operating Earnings & $65.4 7.3% • $1.4B backl
Slide 14: Record Backlog Drives Long-Term Growth
Record Backlog Drives Long-Term Growth ORDER GROWTH & MACRO CONDITIONS DRIVING RECORD BACKLOG ($ millions) 1600 ~$1,420 1200 ~$1,035 800 ~$600 400 0 Q2'21 Ending Q2'22 Ending Program Wins Organic Volume Price Advance Ordering Supply Chain Q2'23 Ending Delays • Backlog >2x higher than historical leve
Slide 15: Price/Mix - Cost Recapture Gaining Traction
Price/Mix - Cost Recapture Gaining Traction Price/Mix – Cost Recapture (q/q, $ millions) Price/Mix – Cost Recapture (y/y, $ millions) 90 Ongoing price $160 Further price/mix recapture initiatives recapture anticipated 45 anticipated to push $80 in FY’23 recapture higher 0 $- -45 ($80) -90 ($160) Q2'
Slide 17: Disciplined & Balanced Capital Allocation
Disciplined & Balanced Capital Allocation Capital Allocation FY’18 – FY’22 FY’23 YTD Healthy Balance Sheet (cumulative) Priorities $ millions $ millions • 2 – 3x target leverage Invest in Organic • ~$300M cash and cash equivalents 1 Growth (CapEx) ~$390 ~$40 • Strong cash generation outpaced by stra
Slide 18: Recession Playbook
Recession Playbook I M PA C T & A C T I O N S T O M I T I G AT E S L O W D O W N Key Takeaways: LoB Resilience 1. Slowdown not evident yet, but being vigilant All • Extensive backlog & pent-up demand buffers impact • Supply chain normalizing provides mix benefit 2. Company has deep history of discip
Slide 19: Focusing on What We Can Control
Focusing on What We Can Control 1 Pricing – continue to execute pricing increases commensurate with cost increases 2 Redesign – redesign products for component supply constraints (e.g., chips) 3 Operating Efficiencies – reduce costs through EOS Profitable Growth – retain leading market position & gr
Slide 20: Compelling EnerSys Investment Case
Compelling EnerSys Investment Case BUILDING BLOCKS FOR CONTINUED SUCCESS 1 Provider of highly differentiated energy solutions 2 Full suite of technologies for a diverse set of end markets 3 Strategically aligned to large and growing markets fueled by industry megatrends 4 Healthy balance sheet with
Slide 22: Q2'23 Results
Q2’23 Results Net Sales Adj Operating Earnings & Margin Y/Y Change $899 $899 +9% price +10% volume (5%) FX, ~($45m) $65 $ millions $ millions $61 $65 $791 7.8% 7.2% 7.3% Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 Adj EBITDA & Margin Adj Diluted EPS $1.15 $1.11 $86 $86 $1.01 $79 $ millions 9.9% 9.5% 9.5% Q2
Slide 23: Q2'23 Segment Financial Highlights
Q2’23 Segment Financial Highlights $MILLIONS; % AND BPS Y/Y GROWTH Net Sales Adj. Op Earnings Adj. Op Margin Volume +14% Price +9% Energy Systems $437 FX (5%) $16.4 3.8% ---------------------------- +94% +150 bps Reported +18% Volume +3% Price +9% Motive Power $338 FX (7%) $39.7 11.7% --------------
Slide 24: Inflation Reduction Act (IRA)
Inflation Reduction Act (IRA) F U N D I N G A L L O C AT I O N S A L I G N W I T H E N E R S Y S T E C H N O L O G Y • Lithium / TPPL / Other products in our product mix may qualify depending on energy density Manufacturing tax credit for Potential Annual Tax Direct Financial battery cells credits J
Slide 25: Motive Power
Motive Power R E V E N U E H I S T O R I C A L LY T R E N D S W I T H G D P Americas MP Net Sales vs US GDP % Motive Power Strengths $140,000 vs Prior Cycles: 6% • Bolstered by movements from increased $120,000 4% automation & electrification of ICE forklifts $100,000 2% • Higher margin NexSys® main
Slide 36: Thank you.
Thank you. For more information visit us at www.enersys.com EnerSys Global Headquarters EnerSys EMEA EnerSys Asia 2366 Bernville Road EH Europe GmbH 152 Beach Road Reading, PA 19605 | USA Baarerstrasse 18 Gateway East Building #11- 08 Tel. +1-610-208-1991 6300 Zug Singapore +1-800-538-3627 Switzerla

EnerSys — Investor Presentation (November 2022) on 6ix

EnerSys — Investor Presentation (November 2022)

Slide 1: Investor Presentation November 2022

Slide 2: Forward Looking Statements

Slide 3: Key Takeaways

Slide 4: EnerSys at a Glance (NYSE: ENS)

Slide 5: Technology Driven Portfolio Transformation

Slide 6: Leveraging Our Platforms Across All Segments

Slide 7: Technology to Meet Customer Needs

Slide 8: Technology Advancements

Slide 9: EnerSys Lines of Business

Slide 10: Our Sustainability Journey

Slide 11: Our Sustainability Strategy

Slide 12: Financial Update

Slide 13: Q2'23 Results

Slide 14: Record Backlog Drives Long-Term Growth

Slide 15: Price/Mix - Cost Recapture Gaining Traction

Slide 16: Adj EPS Bridge

Slide 17: Disciplined & Balanced Capital Allocation

Slide 18: Recession Playbook

Slide 19: Focusing on What We Can Control

Slide 20: Compelling EnerSys Investment Case

Slide 21: Appendix

Slide 22: Q2'23 Results

Slide 23: Q2'23 Segment Financial Highlights

Slide 24: Inflation Reduction Act (IRA)

Slide 25: Motive Power

Slide 26: Non-GAAP Reconciliation

Slide 27: Non-GAAP Reconciliation

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Slide 32: Non-GAAP Reconciliation

Slide 33: Non-GAAP Reconciliation

Slide 34: Non-GAAP Reconciliation

Slide 35: Non-GAAP Reconciliation

Slide 36: Thank you.