Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Q4 2023 Earnings Presentation
19 slides from Enerpac Tool's earnings presentation, Oct 17, 2023
Slide 1: Q4 FY2023 Earnings
Q4 FY2023 Earnings October 17, 2023 1
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 “outlook,” “guidance,” “may,” “should, ”“could,” “anticipate
Slide 3: Exceeded Core Growth & EBITDA Guidance
Exceeded Core Growth & EBITDA Guidance * ($ in millions) Fiscal 2022 Initial Guide Fiscal 2023 YoY Actual Results Sept 2022 Actual Results Change Net Sales $571 $565 - $585 $598 5% +200 bps vs Core Growth 11% 3 - 6% 8% high end Adjusted EBITDA $83 $113 - $123 $136 65% Free Cash Flow $44 $50 - $65 $7
Slide 4: Captured ASCEND EBITDA Benefit Ahead of Plan
Captured ASCEND EBITDA Benefit Ahead of Plan * ($ in millions) Achieved Targeted Expected Benefit by FY25 Range in FY23 Initial Expectation Revised Expectation March 2022 March 2023 Fiscal 2023 Actual *Adjusted EBITDA benefit reflecting implementation of the ASCEND transformation program 4
Slide 5: Financial Review
Financial. Review ENERPAC @)
Slide 6: IT&S Core Growth by Region
IT&S Core Growth by Region * Region 4Q 2023 Fiscal 2023 *Core growth represents organic revenue growth excluding the impact of foreign exchange rates, acquisitions, and dispositions. 6
Slide 7: Consistent Growth & Margin Expansion
Consistent Growth & Margin Expansion ($ in millions) Net Sales* Adjusted EBITDA and Margin (%)* $136 $650 $140 25.0% $598 23.0% $600 $120 $571 22.8% 21.0% $100 $529 $550 19.0% $83 $75 17.0% $493 $80 $500 15.0% $60 $52 14.5% 14.1% 13.0% $450 $40 11.0% 10.6% $400 9.0% $20 7.0% $350 $- 5.0% FY20 FY21 F
Slide 8: Quarterly Results Show Continued Progress
Quarterly Results Show Continued Progress ($ in millions, except per share) Net Sales & YoY Core Growth* Adjusted Operating Profit and Margin* $37 $161 $156 $34 $152 23.0% $29 $142 $27 $139 21.7% $23 20.2% 13% 10% 9% 17.9% 6% 4% 16.6% 4Q22 1Q23 2Q23 3Q23 4Q23 4Q22 1Q23 2Q23 3Q23 4Q23 Adjusted EBITDA
Slide 9: FY24 Guidance
NET SALES FY24 Guidance Key Assumptions: $590 - $605M CORE GROWTH OF ~2-4% ▪ Targeting to outperform industry and gain market share ▪ No broad-based global recession ▪ Any M&A would be incremental to ADJ. EBITDA guidance Depreciation & Amortization ~$13-$15M $142 - $152M Interest Expense ~$14-$16M A
Slide 10: Ambitious Growth Strategy Centered Around Four Key Pillars
Ambitious Growth Strategy Centered Around Four Key Pillars 01 02 03 04 EXPANSION Digital Customer Driven EXPANSION in Targeted TRANSFORMATION INNOVATION in Asia Pacific Vertical Markets 6-7% Organic Revenue CAGR Targeted Through FY26 10
Slide 11: Disciplined M&A Program
Disciplined M&A Program Continuing Pure Play Strategy, but Looking Beyond Just Tools and Services to Solve Customer Needs in Targeted Vertical Markets Healthy Pipeline with Focus on Our 4 Key Verticals M&A Activity Focused on Expanding Solutions Offerings by Addressing Gaps in: Product Offerings | M
Slide 12: ASCEND Year in Review
ASCEND Year in Review ACCELERATE IMPROVE DRIVE GREATER ORGANIC GROWTH OPERATIONAL EFFICIENCY & GO-TO-MARKET EXCELLENCE PRODUCTIVITY STRATEGIES AND PRODUCTION IN SG&A EFFICIENCY 49.3% Gross Margin Adjusted SG&A * 8% Core Sales Growth* +280 bps Improvement of 550 bps *Adjusted SG&A expense excludes re
Slide 13: Appendix
Appendix ENERPAC @) TOOL GROUP
Slide 14: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Adjusted EBITDA and Margin Adjusted SG&A FY2023 FY2022 FY2021 FY2020 FY FY Net earnings from continuing operations $54 $20 $40 $6 Selling, general and administrative expenses 212 225 Financing costs 12 4 5 19 Restructuring charges (7) (8) Income
Slide 15: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Quarterly Consolidated Core Sales Growth Annual Consolidated Core Sales Growth Q4 2023 Q4 2022 % Change Q1 2023 Q1 2022 % Change FY2023 FY2022 % Change Net sales $161 $152 6% Net sales $139 $131 6% Net sales $598 $571 5% Fx impact - 1 Fx impact - (7) Fx impact - (
Slide 16: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Fiscal 2024 Guidance Fiscal 2024 Low High Reconciliation of Continued Operations GAAP Operating Profit To Adjusted EBITDA GAAP Operating profit $ 113 $ 130 ASCEND transformation program charges 10 7 Restructuring charges 5 3 Adjusted operating profit $ 128 $ 140 O
Slide 17: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The Enerpac Tool Group fiscal 2023 Q4 earnings release and full GAAP to non-GAAP reconciliation is available online at https://ir.enerpactoolgroup.com/. 17
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures The Enerpac Tool Group fiscal 2023 Q4 earnings release and full GAAP to non-GAAP reconciliation is available online at https://ir.enerpactoolgroup.com/. 18
Slide 19: Footnotes to Reconciliation Tables
Footnotes to Reconciliation Tables (1) Approximately $0.6 million of the Q4 fiscal 2023 restructuring charges were recorded in cost of products sold. (2) Caption updated from "Leadership transition & board search charges (benefit)" used during Fiscal 2022, costs included have not been altered. (3) E