Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Worthington Industries — 2020 Virtual Global Industrial Conference
29 slides from Worthington Enterprises's conference presentation, Nov 12, 2020
Slide 1: Worthington Industries – 2020 Virtual Global Industrial Conference
Worthington Industries Joe Hayek – Chief Financial Officer 2020 Virtual Global Industrial Conference November 12, 2020
Slide 2: Safe harbor statement
Worthington Industries wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the “Act"). Statements by the Company which are not historical information constitute "forward looking statements" within the meaning of the Act. All forwar
Slide 3: Vision
Vision To Be the Transformative Partner for our customers, a Positive Force in our communities and earn exceptional returns
Slide 4: Net sales of $2.9 billion TTM
Net sales of $2.9 billion TTM 08/31/20 7,500 51 6 4,500
Slide 5: Corporate Citizenship & Sustainability Fiscal Year 2020 Highlights
Long history of keeping employees safe, practicing good citizenship and protecting the environment Corporate Citizenship & sustainability Fiscal Year 2020 Highlights For more information on our Corporate Citizenship & Sustainability efforts, please see our first annual Corporate Citizenship & Sustai
Slide 6: Largest purchaser of flat roll steel behind automakers
Largest purchaser of flat roll steel behind automakers FORTUNE Most Admired Companies in Metals Industry three times FORTUNE 100 Best Companies to Work For in America four times Best Place to Work in IT by Computerworld 2017-2020 Partner-Level Supplier 2013-2019 and Supplier Hall of Fame by John Dee
Slide 7: Net Sales by End-Markets and Operating Income by Segment
Net Sales by End-Markets $2.9B Trailing 12 Month Net Sales Operating/Equity Income by Segment TTM* $210.5 million * Excludes restructuring and impairment, $23.1M gain related to the sale of WAVE’s foreign assets in Q2 FY20, and $49.5M expense related to NKLA gain in Q1 FY21.
Slide 8: Steel Processing Profile
Sales By End Market TTM 8/31/20 $1.8B AUTO CORE PRODUCTS Profile STEEL PROCESSING AGRICULTURE CONSTRUCTION HEAVY TRUCK Carbon flat rolled steel processing - Broad range of metal products in sheet, coil and strip configurations, as well as a number of processing capabilities from specialty coatings a
Slide 9: Pressure Cylinders Profile
Profile Sales By SBU Industrial Products - Broad line of pressure cylinders and tanks for industrial gas storage and transportation Consumer Products – Market-leading brands with products for jobsite, home and outdoor activities Oil & Equipment - Custom solutions for energy storage, processing and t
Slide 10: WAVE Profile
Profile Contribution to WI Equity Income ($M) MARKETS CORE PRODUCTS 5.9% CAGR Sustainable revenue and EBITDA growth with creative fabricated architectural metal components, focusing on superior customer value, industry leading manufacturing, and talent development resulting in low cost construction
Slide 11: Successful Joint Ventures
Successful JV portfolio built with trusted partners who help make a business better versus the alternative of going solo JVs managed to produce regular cash dividends that closely approximate earnings Successful Joint Ventures Business Ownership Created WAVE Architectural and acoustical grid ceiling
Slide 12: Growth Strategy
Growth Strategy Working together using technology, analytics and automation enables us to deliver… Successful innovation, transformation, and acquisitions that drive value for customers and earn exceptional returns for our shareholders. All with Our Philosophy at the center.
Slide 13: Complementary value drivers are well established
complementary value drivers are well established Broad based business system focused on: Data-driven decision making Optimizing value streams and eliminating waste Discovering new capabilities through agile teams One system, driven by everyone, not just a central tiger team TRANSFORMATION Innovation
Slide 14: Example of Transformation project at cylinder facility
Example of Transformation project at cylinder facility conducted during pandemic Issue: Strong demand for Coleman® and Bernzomatic® camping gas tanks required transformation efforts to increase production in order to meet customer demand What we did to drive improvements: Utilized data analytics fro
Slide 15: Value drivers in action: innovation
Value drivers in action: innovation Fuel Gauge for camping cylinders Focused effort has resulted in a growing pipeline of new products Smartlid™ Integrated monitoring solution Hits Walmart shelves in time for holiday season Check propane levels remotely for home & industrial heating Comfort Carry™ P
Slide 16: Value drivers in action: innovation
CLEAN CANNABIS extraction cylinder Meets need for a cleaner alternative to carbon steel Max9 Bundle™ Holds 25% more industrial gas than traditional bundle fourtis® Type IV PROPANE cylinder Heating & cooking indoors globally Lightweight & fully recyclable Value drivers in action: innovation Focused e
Slide 17: Value drivers in action: innovation
Armstrong VidaShield UV24 Air Purification System Value drivers in action: innovation Focused effort has resulted in a growing pipeline of new products
Slide 18: Value drivers in action: M&A
Cylinders Sales ($M) 9.1% CAGR Cylinders Operating income* ($M) 8.9% CAGR *excludes restructuring and non-recurring charges. Value drivers in action: M&A Pressure Cylinders has experienced meaningful earnings growth over the past 10 years driven by acquisitions INDUSTRIAL PRODUCTS European Industria
Slide 19: Financial goals
Financial goals Grow EBITDA & free cash flow every year 10%+ return on capital Raise margins Reduce earnings volatility Balanced capital allocation Modest leverage / ample liquidity (investment grade) Rigorous capital discipline
Slide 20: Balanced capital allocation strategy
Balanced CAPITAL ALLOCATION STRATEGY Strong cash flows and significant liquidity support balanced approach to capital allocation focused on growth and rewarding shareholders Capital Expenditures Acquisitions Dividends Share Repurchases Reinvest in the business to create value and support growth FY20
Slide 21: Consolidated Results
Consolidated Results *Adjusted for restructuring and non-recurring items. See supplemental data schedules in appendix for reconciliation of adjustments. $ millions, except EPS FY2019 FY2020 3M FY2020 3M FY2021 Sales $3,760 $3,059 $856 $703 Adjusted EBITDA* $330 $300 $78 $75 % of sales 8.8% 9.8% 9.1%
Slide 22: Key investment highlights
Key investment highlights Growth strategy focused on value drivers of innovation, transformation and acquisition to enhance margins Solid free cash flow and ample liquidity to execute on strategy Rigorous capital discipline focused on high cash flow investments Balanced approach to capital allocatio
Slide 23: Supplemental Data
4 WORTHINGTON INDUSTRIES SUPPLEMENTAL DATA
Slide 24: Consolidated Adjusted EBITDA / Free Cash Flow
Supplemental Data Consolidated Adjusted EBITDA / Free Cash Flow *FY21 3M adjusted for net gain of $747M related to NKLA and restructuring charges of $12M Cash Flow ($ in Millions) FY19 FY20 FY20 FY21 Annual Annual 3M 3M Net Income $,153,454,753.391 $78,796,380.547000006 $-4,775,778.7510000002 $,612,
Slide 25: Consolidated Adjusted Operating Income / EPS
Supplemental Data Consolidated Adjusted Operating Income / EPS FY2019 reflects a pre-tax restructuring gain of $3 million ($0.01/share). FY2020 adjusted EPS reflects $93M ($1.29/share) in pre-tax restructuring and non-recurring charges as well as a $23M gain ($0.31/share) from the sale of WAVE’s for
Slide 26: Steel Processing Financials
$ millions FY2019 FY2020 3M FY2020 3M FY2021 Sales $2,436 $1,860 $523 $431 Adj. EBITDA* $122 $79 $14 $23 % of sales* 5.0% 4.3% 2.6% 5.4% Operating Income* excl. Restructuring $93 $46 $6 $15 % of sales 3.8% 2.5% 1.2% 3.5% Capital Expenditures $39 $41 $8 $15 Avg Invested Capital $550 $512 $538 $535 RO
Slide 27: Pressure Cylinders Financials
Pressure Cylinders Financials $ millions FY2019 FY2020 3M FY2020 3M FY2021 Sales $1,208 $1,148 $304 $271 Adj. EBITDA* $105 $124 $41 $29 % of sales* 8.7% 10.8% 13.4% 10.5% Operating Income* excl. Restructuring $63 $81 $30 $19 % of sales 5.3% 7.1% 9.7% 7.0% Capital Expenditures $38 $41 $7 $11 Avg Inve
Slide 28: Unconsolidated JV equity earnings and dividends
*Excludes Restructuring and Impairment Charges DIVIDEND to WII (CASH FLOW) EQUITY EARNINGS* Equity Earnings $ MILLIONS WAVE (50%) $78.3 $77.5 $82.3 $78.0 $23.9 $17.7 ClarkDietrich (25%) $17.3 $9.8 $8.6 $17.2 $4.1 $4.9 Servicero (50%) $7.2 $8.8 $8.1 $1.3 $0.8 $1.3 Artiflex (50%) $7.0 $4.9 $2.0 $2.7 $
Slide 29: Safe Harbor Statement and contact
Safe Harbor Statement Worthington Industries wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 (the “Act"). Statements by the Company which are not historical information constitute "forward looking statements" within the meaning
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