EnerSys · NYSE:ENS
EnerSys — Q1 2022 Earnings Presentation
15 slides from EnerSys's earnings presentation, Aug 12, 2021
Slide 1: 1st Quarter Earnings Conference Call
1st Quarter Earnings Conference Call August 12, 2021 August 12, 2021 EnerSys 2021. All Rights Reserved
Slide 2: Forward-Looking Information
David M. Shaffer Director, President and Chief Executive Officer Michael J. Schmidtlein Executive Vice President and Chief Financial Officer Forward-Looking Information As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management’s current expecta
Slide 3: Sales, Backlog & Earnings Up
Sales, Backlog & Earnings Up $815M +16% Revenue vs Q1’21 • Robust demand in all business segments drove strong quarterly results • Backlog of $850 at record high, and growing • Shortages in labor, materials and transportation being addressed NE $54 $1.25M +36% EPS vs Q1’21 Presented on an as adjuste
Slide 4: Energy Systems
Energy Systems Volume growth offset by supply chain headwinds $371M • Revenue up 6% and OE up $4M versus Q4 Revenue • CA PUC backup program ramping ($50M initial orders being finalized) +$5% vs Q1’21 • Progressing new product initiatives (Touch-Safe, lithium, & DC fast charge) $13M ($15M) • Headwi
Slide 5: Motive Power
Motive Power Backlog at historic highs, ROS at historic high-end $336M • Backlog of $250+M at historic highs Revenue • ROS of 15.1% near historic heights - aided by +28% efficiency improvements & opex restraints vs Q1’21 • OEM capacity constraints limiting shipments • NexSys® TPPL & lithium gainin
Slide 6: Specialty
Specialty Transportation remains extremely strong, all A&D markets robust • US transportation sales grew 30% • Productivity/capacity ($300M) actions drive $108M +21% Revenue vs Q1’21 lower costs, higher sales in H2 • A&D delivered strong results in all markets • Tactical vehicles orders have pic
Slide 7: BESS + DC Fast Charge Station
BESS + DC Fast Charge Station 285kWh prototype at EnerSys Technology Center • Market opportunity is immense • Recap of our goal – “to charge any electric car as fast as the car can handle, reducing the process from hours to minutes” • Our solution – large storage battery to reduce system installat
Slide 8: Our Outlook
Our Outlook • Near-term continue to face supply chain disruptions • Fundamentals remain strong, and demand growing by the day • Massive 5G buildout now underway • Rapid TPPL demand growth in all lines of business • Best-in-class modular lithium systems in Motive Power and Energy Systems enhances our
Slide 9: Our Strategy Remains Unchanged
Our Strategy Remains Unchanged 1. Accelerate higher margin Motive Power sales with NexSys® 2. Grow the Energy Systems product portfolio with fully integrated DC power systems and small cell site powering solutions to accelerate our 5G growth, as well as our BESS + DC fast charging initiative 3. Incr
Slide 10: 1st Quarter Fiscal 2022 Results
1st Quarter Fiscal 2022 Results ($ Millions) Q1 F'22 Q4 F'21 Q1 F'21 SALES $814.9 $813.5 $704.9 GROSS PROFIT 193.2 (24%) 197.3 (24%) 175.0 (25%) OP EARNINGS $ $75.1 $78.4 $61.2 OP EARNINGS % 9.2% 9.6% 8.7% EPS $1.25 $1.30 $0.92 Presented on an as adjusted basis. August 12, 2021 EnerSys 2021. All Rig
Slide 11: F'22 1st Qtr. YoY Sales
F’22 1st Qtr. YoY Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 Q1 F'21 Q1 $ % Volume Price M&A Fx Energy Systems $371 $353 $18 5% 3% -1% - 3% Motive Power $336 $263 $73 28% 22% 1% - 5% Specialty $108 $89 $19 21% 18% 1% - 2% Total Net Sales $815 $705 $110 16% 12% - - 4% Fav/(Unfav
Slide 12: F'22 1st Qtr. Sequential Sales
F’22 1st Qtr. Sequential Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 Q1 F'21 Q4 $ % Energy Systems $371 $349 $22 6% Motive Power $336 $333 $3 1% Specialty $108 $132 ($24) -19% Total Net Sales $815 $814 $1 0% -1% Organic, 0% Price, 0% Acquisitions, 0% Fx Fav/(Unfav) F'22 Q1 F'21
Slide 13: F'22 1st Qtr. Operating Earnings by LoB
F’22 1st Qtr. Operating Earnings by LoB ($ Millions) Fav/(Unfav) Year Over Year F'22 Q1 F'21 Q1 $ % Operating Earnings Energy Systems $13.1 $28.1 ($15.0) -53% 3.5% 8.0% Motive Power 50.6 27.3 $23.3 85% 15.1% 10.4% Specialty 11.4 5.8 $5.6 97% 10.6% 6.5% Total Operating Earnings $75.1 $61.2 $13.9 23%
Slide 14: F'22 1st Qtr. Net Earnings and EPS
F’22 1st Qtr. Net Earnings and EPS ($ Millions, Except Per Share Amounts) Fav/(Unfav) F'22 Q1 F'21 Q1 $ % Operating Earnings $75.1 $61.2 $13.9 23% As % Net Sales 9.2% 8.7% 0.5 Pts. Book Tax Rate 18% 21% Net Earnings $54.4 $39.4 $15.0 38% As % Net Sales 6.7% 5.6% 1.1 Pts. EPS diluted $1.25 $0.92 $0.3
Slide 15: Financial Position Highlights
Financial Position Highlights ($ Millions) Q1 Fiscal Year 2022 2021 Cash & Cash Equivalents $406.2 $451.8 Net Debt (Gross Debt − Investments) $776.4 $684.3 Net Cash from Operations YTD ($48.1) $358.4 Capital Expenditures YTD $16.4 $70.0 Leverage Ratio (per US Credit Agreement) 1.95X 1.7X Primary Wor