Slide 1: Fourth Quarter & Full Year 2023 Earnings Review
Fourth Quarter & Full Year 2023 Earnings Review February 20, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements in this presentation that express a belief, expectation or intention, as well as those that are not historical fact, are forward-looking statements under the Private Securities Litigation Reform Act of 1995. They involve a number of risks and uncertainties that
Slide 3: Full Year 2023 Review
Full Year 2023 Review Eric Vaillancourt President & Chief Executive Officer
Slide 4: Full Year 2023 Performance
Full Year 2023 Performance $ in millions Sales Adjusted EBITDA* & Margin* -3.6% -7.5% • Adjusted EBITDA decreased 7.5% compared to 2022. Adjusted • Sales decreased 3.6% compared to 2022. On an organic basis, EBITDA margin of 22.5% decreased 90 basis points compared to sales declined 3.3% the prior y
Slide 5: Semiconductor Market Widely Expected to Double Over The Next Decade
Semiconductor Market Widely Expected to Double Over The Next Decade Semiconductor Industry Trends* AST Semiconductor Strategy NxEdge – Technetics Semi – LeanTeq Chip Architectures Evolving and Increasing in Complexity Technology Differentiation Advanced Processing Nodes Enable Artificial Intelligenc
Slide 6: Advancing Our World-Class Safety Track Record
Advancing Our World-Class Safety Track Record Enpro Safety Statistics vs. BLS Industry Averages In 2023 we saw a: 3.00 59% reduction in our Total Recordable Incident Rate (TRIR), bringing Enpro well below the industry average 2.00 Enpro TRIR 1.38 Enpro LTCR 47% reduction 1.12 1.04 1.00 in Lost Time
Slide 7: Fourth Quarter 2023 Financial Results
Fourth Quarter 2023 Financial Results Milt Childress Executive Vice President & Chief Financial Officer
Slide 8: Fourth Quarter 2023 Financial Performance
Fourth Quarter 2023 Financial Performance $ in millions, except per share data Sales Gross Profit & Margin Adjusted EBITDA* & Margin* Adjusted Diluted EPS* -8.4% -8.7% -12.2% -8.5% • Sales decline driven by ongoing • Gross margin flat as strategic pricing • Adjusted EBITDA margin of 18.8% • Adjusted
Slide 9: Sealing Technologies – Q4 2023 Performance
Sealing Technologies – Q4 2023 Performance $ in millions Sales Adjusted Segment EBITDA & Margin -6.3% -6.3% • Sales decrease driven by a sharp decline in commercial vehicle • Adjusted segment EBITDA decreased 6.3% and 7.9% organically OEM, as well as soft general industrial, commercial aerospace, •
Slide 10: Advanced Surface Technologies – Q4 2023 Performance
Advanced Surface Technologies – Q4 2023 Performance $ in millions Sales Adjusted Segment EBITDA & Margin -11.5% -20.8% • Sales decreased 11.5% driven primarily by a soft semiconductor • Adjusted segment EBITDA decreased 20.8%, with the slow market semiconductor market as the primary driver, in addit
Slide 11: Balance Sheet, Cash Flow & Capital Allocation
Balance Sheet, Cash Flow & Capital Allocation Net Debt Commentary December 31, 2023, $ in millions • Ample liquidity consisting of $370M cash, and $390M Credit Facility $ — available for borrowing under revolving credit facility4 Senior Notes1 $ 347 • Free cash flow* for the full year 2023 of $174.5
Slide 12: 2024 Guidance
2024 Guidance 2024 Guidance* Assumptions (at February 20, 2024) Low – Mid Single ~$97-100M Revenue Growth Digit Growth Depreciation and Amortization*** ~$60M Capital Expenditures Adjusted EBITDA** $260M – $280M ~$31-33M Net Interest Expense Adjusted Diluted EPS** $7.00 – $7.80 25% Normalized Tax Rat
Slide 13: Closing Comments
Closing Comments Eric Vaillancourt President & Chief Executive Officer
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Slide 15: Appendix
Appendix ©
Slide 16: Enpro (NYSE: NPO) | Attractive Portfolio of Businesses
Enpro (NYSE: NPO) | Attractive Portfolio of Businesses Company Overview 2023 Revenue Contribution Sales by Segment Sales by Channel Sales by Geography Sales by Market Headquarters Charlotte, NC Principal Manufacturing and 13 Service Facilities Global Employees ~3,500 Financial Overview Market-Cap1 $
Slide 17: Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA For the Quarters and Years Ended December 31, 2023 and 2022 (In Millions) Quarters Ended Years Ended December 31, December 31, 2023 2022 2023 2022 Income (loss) from continuing operations attributable to Enpro Inc. $ (4.9) $ (57.5) $ 10.8 $ 6.7 Net income (loss) attribut
Slide 18: Segment Information (1/2)
Segment Information (1/2) For the Quarters and Years Ended December 31, 2023 and 2022 Reconciliation of Adjusted Segment EBITDA to Income from Continuing Operations Attributable to Enpro Inc. (In Millions) Quarters Ended Years Ended December 31, December 31, Sales 2023 2022 2023 2022 Quarters Ended
Slide 19: Segment Information (2/2)
Segment Information (2/2) For the Quarters and Years Ended December 31, 2023 and 2022 (In Millions) Quarter Ended December 31, 2023 Quarter Ended December 31, 2022 Advanced Advanced Sealing Surface Total Sealing Surface Total Technologies Technologies Segments Technologies Technologies Segments Acqu
Slide 20: Consolidated Adjusted Net Income*
Consolidated Adjusted Net Income* (In Millions, Except Per Share Data) Quarters Ended December 31, Years Ended December 31, 2023 2022 2023 2022 Average Average Average Average common common common common shares shared shares shares outstanding, Per outstanding, Per outstanding, Per outstanding, Per
Slide 21: Free Cash Flow
Free Cash Flow (In Millions) Free Cash Flow - Year Ended December 31, 2023 Net cash provided by operating activities of continuing operations $ 208.4 Purchases of property, plant, and equipment (33.9) Free cash flow $ 174.5 Free Cash Flow - Year Ended December 31, 2022 Net cash provided by operating