Enerpac Tool Group Corp. · NYSE:EPAC
Enerpac Tool — Q2 2024 Earnings Presentation
19 slides from Enerpac Tool's earnings presentation, Mar 21, 2024
Slide 1: Q2 FY24 Earnings
Q2 FY24 Earnings March 21, 2024 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: Taking Enerpac to the Next Level of Growth & Profitability
Taking Enerpac to the Next Level of Growth & Profitability 3
Slide 4: Q2 FY24 Results
Q2 FY24 Results ($ in millions) Net Sales Net Sales Organic 2Q23 2Q24 Growth* Industrial Tools & Service (IT&S) $131 $135 +2.8% IT&S Product $104 $108 +3.7% IT&S Service $27 $27 -0.8% ** Other $11 $4 -25.3% Enerpac Tool Group $142 $138 +1.8% *Organic net sales is a non-GAAP measure and excludes the
Slide 5: Continued Operational and SG&A Efficiency Gains
Continued Operational and SG&A Efficiency Gains Gross Margin SG&A % Adjusted SG&A %* 38.8% 51.6% 49.6% 29.7% 28.5% 28.4% 2Q23 2Q24 2Q23 2Q24 2Q23 2Q24 *Adjusted SG&A expense is a non-GAAP measure and excludes restructuring and other charges identified in the accompanying reconciliations to GAAP meas
Slide 6: Driving EBITDA & Margin Expansion
Driving EBITDA & Margin Expansion ($ in millions) Adjusted EBITDA* Adjusted EBITDA Margin* $34 24.8% $32 22.7% 2Q23 2Q24 2Q23 2Q24 *Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures and exclude restructuring and other charges identified in the accompanying reconciliations to GAAP meas
Slide 7: Strong Liquidity & Balanced Capital Allocation Strategy
Strong Liquidity & Balanced Capital Balance Sheet Allocation Strategy ($ in millions) Cash & Equivalents $154 Revolver Capacity (Undrawn) $351 Total Liquidity $505 Total Debt $245 Net Debt/Adj. EBITDA* 0.7x Invest in Ourselves Disciplined M&A Investments in Digital, Product Innovation, R&D, Operatio
Slide 8: IT&S Organic Growth by Region
IT&S Organic Growth by Region * Region 2Q23 2Q24 FY23 IT&S Regional Sales APAC 14% Americas 46% EMEA 39% *Organic net sales is a non-GAAP measure and excludes the impact of foreign exchange rates, acquisitions, and dispositions. 8
Slide 9: Vibrant Innovation Pipeline: New Product Launches
Vibrant Innovation Pipeline: New Product Launches 40-Ton Hydraulic Pin Puller Kit 100-Ton Hydraulic Lock Grip Puller ▪ Provides safe & easy way to remove ▪ Safe & productive joint pins used in mining, on/off-highway removal of shaft- vehicles, and in equipment found in mounted components manufacturi
Slide 10: Making Complex Jobs Possible: Moving the Space Shuttle
Making Complex Jobs Possible: Moving the Space Shuttle Enerpac Cube Jacks were used for the challenging job of moving the retired Space Shuttle Endeavor to its permanent display at the California Science Center in Los Angeles 10
Slide 11: Driving Growth with Enerpac Commercial Excellence
Driving Growth with Enerpac Commercial Excellence Growth focus aligned with Enerpac’s strategic direction Consistent commercial approach driven by focused sales activity A winning, positive culture driven by data, discipline, and collaboration Delivering predictable performance from actions to resul
Slide 12: Enerpac HQ Relocating to Downtown Milwaukee
Enerpac HQ Relocating to Downtown Milwaukee ▪ Part of ongoing footprint rationalization efforts to reduce fixed costs ▪ Rightsized for Enerpac with a 30% reduction in square footage ▪ Enhanced work environment with modernized industrial vibe and an abundance of amenities for employees ▪ Increases ab
Slide 13: Enerpac Tool Group
ENERPAC @) TOOL GROUP
Slide 14: Appendix
Appendix ENERPAC @) TOOL GROUP
Slide 15: Affirming FY24 Guidance
NET SALES Affirming FY24 Guidance $590 - $605M CORE GROWTH OF ~2-4% Key Assumptions: ▪ Targeting to outperform industry and gain market share ADJ. EBITDA ▪ No broad-based global recession Depreciation & Amortization ~$13-$15M $142 - $152M Interest Expense ~$14-$16M Adjusted Tax Rate ~20-25% Cash Tax
Slide 16: Quarterly Results
Quarterly Results ($ in millions, except per share) Net Sales & YoY Core Growth* Adjusted EBITDA and Margin* $161 $156 $40 $37 $142 $142 $35 $34 $139 $138 $32 $27 13% 24.9% 24.6% 24.8% 24.0% 22.7% 9% 6% 5% 19.1% 4% 2% 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 Adjusted Operating Pro
Slide 17: Reconciliation of Non-GAAP Measures
Q3 FY23 Q3 FY23 Q3 FY22 % Change Net Sales $156 $152 2.9% Reconciliation of Non-GAAP Measures Fx Impact - (2) Divestiture - 0 Total $156 $150 4.3% (US$ in millions) Q4 FY23 Q4 FY23 Q4 FY22 % Change Consolidated NetOrganic Sales $161 $152 5.8% Q2 FY24 Organic Sales Q2 FY23 Organic Sales Sales by Quar
Slide 18: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions, except per share) Net Sales Adjusted Net Earnings from Continuing Operations Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Enerpac Tool Group $ 139 $ 142 $ 156 $ 161 $ 142 $ 138 Net Earnings 7 4 1
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures (US$ in millions) Adjusted Selling, general and administrative expenses Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Selling, general and administrative expenses $ 54 $ 55 $ 51 $ 52 $ 45 $ 41 Selling, general and administrative expenses % 38.9% 38.8% 32.7% 32.3