ESAB Corporation · NYSE:ESAB
ESAB — Q1 2022 Earnings Presentation
17 slides from ESAB's earnings presentation, May 10, 2022
Slide 1: First Quarter 2022 Earnings Conference Call
First Quarter 2022 EARNINGS CONFERENCE CALL May 10, 2022
Slide 2: Forward Looking Statement & Non-GAAP Disclaimer
Forward Looking Statement & Non-GAAP Disclaimer DISCLAIMER This document has been prepared by ESAB Corporation, a Delaware corporation (the “Company” or “ESAB”), solely for informational purposes. References herein to the terms “ESAB” and the “Company” when used in the historical context prior to Ap
Slide 3: 1Q 2022 Highlights
1Q 2022 Highlights Reported strong 1Q 2022 results: ▪ Successfully completed separation from Colfax/Enovis Corporation ▪ Continuing to accelerate pace of new product introductions ▪ EBX driving growth, margin expansion and safety 2021 Momentum continues into first quarter 2022 Proprietary & Confiden
Slide 4: Launching Innovative New Products
Robustfeed AVS – Wire feeder Launching Innovative Fabricator - Heavy industrial product ▪ ▪ Upgraded technology New Products ▪ Award winning wire feeder Connects to all equipment ▪ Simplifies product line Accelerating pace of innovation: Druva Pur’ - High purity lab equipment Medivital – Integrated
Slide 5: EBX Driving Impact
EBX Driving Impact Manufacturing Kaizen example: Scope: Benefits / Results: ▪ Double output ▪ Increased sales per month by 43% ▪ Alleviate bottlenecks – improve flow ▪ 42% increase in units per month Provide solution for: ▪ Subassemblies ▪ Improve throughput 1Q Kaizens – North America Before After ▪
Slide 6: ESAB 1Q 2022 Financial Summary
ESAB 1Q 2022 Financial Summary (M) 1Q 2022 1Q 2021 YoY Delta Sales $647.9 $568.1 14.0% aEBITA 100.3 84.7 18.5% aEBITA Margin % 15.5% 14.9% 60 bps aEBITDA 109.3 94.3 15.9% aEBITDA Margin % 16.9% 16.6% 30 bps aEPS $ $1.17 $1.12 4.5% 1Q Highlights: 1Q 2022 Sales Growth: ▪ Healthy demand across most geo
Slide 7: ESAB 1Q 2022 Americas
ESAB 1Q 2022 Americas (M) 1Q 2022 1Q 2021 YoY Delta Sales $272.3 $226.2 20.4% aEBITDA 44.0 33.3 32.1% aEBITDA Margin % 16.2% 14.7% 150 bps 1Q Highlights: 1Q 2022 Sales Growth: ▪ Record equipment sales Organic 21% ▪ New portfolio driving growth in the channel Price 18% ▪ Strong execution delivering m
Slide 8: ESAB 1Q 2022 EMEA and APAC
ESAB 1Q 2022 EMEA and APAC (M) 1Q 2022 1Q 2021 YoY Delta Sales $375.6 $342.0 9.8% aEBITDA 65.3 61.0 7.0% aEBITDA Margin % 17.4% 17.8% (40) bps 1Q Highlights: 1Q 2022 Sales Growth: ▪ Record sales of equipment Organic 16% ▪ Building momentum in robotics and WeldCloud Price 12% ▪ Strong price realizati
Slide 9: Reiterating 2022 Guidance
Reiterating 2022 Guidance Outlook Full Year 2022 ▪ Strong first quarter performance; confirming full year guidance Sales $2.45 - 2.50B ▪ Guidance reflects no profit from Russia for remainder of 2022 Total Growth 2% - 4% ▪ Manufacturing consolidation and transformation project Organic Growth Ex Russi
Slide 10: Summary
Summary ▪ Strong start as a public company ▪ Dynamically managing price to offset inflation ▪ EBX focused on driving growth, expanding margins and generating free cash flow ▪ Confident in executing against our long-term strategic goals Confident on delivering long-term shareholder value Proprietary
Slide 11: Appendix
Appendix Proprietary & Confidential 11 ESAB Corporation
Slide 12: Reiterating 2022 Guidance
Reiterating 2022 Guidance ESAB 2022 Outlook ▪ 2022 net sales progression: Sales ($B) 2.45 - 2.50 Q1 26%, Q2 25%, Q3 24% Total Growth 2% - 4% and Q4 25% Organic Growth 4% - 7% Segment aEBITDA ($M) 435 - 455 Corporate Expense ($M) ~35 aEBITDA ($M) 400 - 420 Interest Expense ($M) 35 - 40 Tax Rate 25% -
Slide 13: Change in Sales Reconciliation
Change in Sales Reconciliation Net Sales $ Change % For the three months ended April 2, 2021 $ 568.1 Components of Change: Existing businesses1 $ 101. 2 17.8% Foreign currency translation 2 $ (21.4) (3.8)% Total net sales change $ 79.8 14.0% For the three months ended April 1, 2022 $ 647.9 1 Exclude
Slide 14: Change in Sales Reconciliation
Change in Sales Reconciliation Net Sales Americas EMEA & APAC $ Change % $ Change % For the three months ended April 2, 2021 $ 226.2 $ 342.0 Components of Change: Existing businesses 1 $ 47.7 21.1% $53.5 15.6% Foreign currency translation 2 $ (1.6) (0.7)% $ (19.9) (5.8)% Total net sales change $ 46.
Slide 15: Non-GAAP Reconciliation – Total
Non-GAAP Reconciliation – Total1 ESAB Corporation Q1 2021 % of NSV Q2 2021 % of NSV Q3 2021 % of NSV Q4 2021 % of NSV 2021 % of NSV Q1 2022% of NSV Net Sales $ 568.1 $ 629.8 $ 606.0 $ 624.2 $ 2,428.1 $ 647.9 Operating Income $ 72.3 12.7% $ 82.2 13.0% $ 78.6 13.0% $ 73.0 11.7% $ 306.2 12.6% $ 83.6 12
Slide 16: Non-GAAP Reconciliation – Americas
Non-GAAP Reconciliation – Americas1 ESAB Corporation Q1 2021 % of NSV Q2 2021 % of NSV Q3 2021 % of NSV Q4 2021 % of NSV 2021 % of NSV Q1 2022% of NSV Net Sales $ 226.2 $ 253.6 $ 260.0 $ 264.4 $ 1,004.2 $ 272.3 $ 22.4 9.9% $ 27.1 10.7% $ 31.5 12.1% $ 27.1 10.2% $ 108.1 10.8% $ 30.2 11.1% Operating I
Slide 17: Non-GAAP Reconciliation – EMEA & APAC
Non-GAAP Reconciliation – EMEA & APAC1 ESAB Corporation Q1 2021 % of NSV Q2 2021 % of NSV Q3 2021 % of NSV Q4 2021 % of NSV 2021 % of NSV Q1 2022% of NSV Net Sales $ 342.0 $ 376.2 $ 346.0 $ 359.8 $ 1,423.9 $ 375.6 Operating Income $ 49.9 14.6% $ 55.1 14.6% $ 47.1 13.6% $ 45.9 12.8% $ 198.1 13.9% $ 5