EnerSys · NYSE:ENS

EnerSys — Investor Presentation (September 2024)

49 slides from EnerSys's investor presentation, September 2024

Slide 2: Forward Looking Statements
Forward Looking Statements As a reminder, we will be presenting certain forward-looking statements in this presentation that are based on Management’s current expectations and views regarding future events and operating performance and are subject to uncertainties and changes in circumstances. Our a
Slide 3: EnerSys at a Glance
EnerSys at a Glance F Y 2 0 2 4 K E Y S TAT I S T I C S 1 $4.1B $450M $507M $8.35 10K+ Market Cap2 Adj. Operating Earnings3 Adj. EBITDA3 Adj. Diluted EPS3 Customers G L O B AL FAC I L I T Y B AS E 4 F Y 2 0 2 4 N E T S AL E S $3.6B Business Geography Segments 6% 15% 22% 44% 72% 41% Energy Systems Am
Slide 4: Well-Positioned for Long-Term Profitable Growth
Well-Positioned for Long- Term Profitable Growth Provider of highly differentiated energy solutions with 1 full suite of technologies for diverse end markets Strategically aligned with megatrends in 2 large and growing markets Resilient business model positioned for strong cash 3 flow generation, pr
Slide 5: Energized Leadership Team Focused on Execution and Accountability
Energized Leadership Team Focused on Execution and Accountability Dave Shaffer Patrice Baumann Andi Funk Jamie Gebbia Joe Lewis Mark Matthews President and CEO Chief Integrated EVP and CFO VP Corporate and Business Chief Legal and President, Joined: 2005 Supply Chain Officer 2018 Development Complia
Slide 6: Experienced and Diversified Board of Directors
Experienced and Diversified Board of Directors S K I L L S M AT R I X Paul Tufano Caroline Chan Steven Fludder Executive Leadership 100% Non-Executive Chair of the VP and General Manager Former CEO, Board of Directors, EnerSys Network Business Incubator LS Energy Solutions LLC Character / Integrity
Slide 7: Empowering Our Team to Innovate and Deliver Differentiated Solutions
Empowering Our Team to Innovate and Deliver Differentiated Solutions MISSION VISION Providing people everywhere with Serving the global community accessible power to help them with mission-critical work and live better stored energy solutions VAL U E S - D R I V E N C U LT U R E Safety & Our Continu
Slide 8: Executing Our Strategic Vision | Significantly Transformed Portfolio
Executing Our Strategic Vision | Significantly Transformed Portfolio • Improved new product TO D AY • Established vision- • Integrated Alpha and development time driven culture NorthStar acquisitions • Expanded product Innovating, Optimizing, • Built teams to execute • Deepened capabilities lines an
Slide 9: Product Portfolio Evolution | Transformed to End-to-End Energy Solutions Provider
Product Portfolio Evolution | Transformed to End-to-End Energy Solutions Provider N ET SA L ES M IX ($B) H IG H L IGH T S 1 $3.6 New Product $3.1 110 Introductions 45% $2.4 Faster New Product 56% 3.5x Development Time 73% 55% 44% 27% 75 UL Approvals FY'17 FY'20 FY'24 Maintenance-free, Systems, and S
Slide 10: Business Segments
Business Segments ENERGY SYSTEMS NEW VENTURES Power conversion, power distribution, Energy storage and management and energy storage solutions systems for demand charge • Communication Networks reduction, utility back-up power, • Data Centers and dynamic fast charging • Industrial Power and Utilitie
Slide 11: Foundational Core Modular Platforms
Foundational Core Modular Platforms E N E R G Y S TO R AG E POWER ELECTRONICS Lithium-ion • Advanced, high-efficiency power conversion • Maintenance-free • High voltage power transfer with power • Longer cycle life line communication for 5G small cells • Fastest charge rate • Wireless power transfer
Slide 12: Addressing Global Megatrends in Attractive and Diverse End Markets
Addressing Global Megatrends in Attractive and Diverse End Markets Energy • Modernizing energy grids, storage, and distribution Transition • Shifting market to EVs ~$30B+ Serviceable Energy • Increasing resiliency of electrical infrastructure and grid Addressable Market1 Security • Growing need for
Slide 13: Leveraging Our Sustainable Competitive Advantages
Leveraging Our Sustainable Competitive Advantages Deep Customer Domain Modular Resilient Operational Relationships Expertise Technology Business Model Excellence Customer-centric Product and company Only fully integrated Large, diverse end- Continuous improvement end-to-end solutions differentiation
Slide 14: Strategic Priorities Driving Long Term Growth
Strategic Priorities Driving Long Term Growth Increasing Higher Value Solutions • Customer-centric NPIs (volume and mix) Innovate • State-of-the-art technology Compounding Value Creation • Organic hardware and software • Fast Charge and Storage (FC&S) • Scalable projects across Energy Systems, Motiv
Slide 15: Our Sustainability Journey
Our Sustainability Journey Announced Published Scope 1 and Won the Department supplemental Scope 2 Awarded with a Scope 3 of Energy’s Better Target date for environmental carbon silver medal Inventory Project Award and climate goal data neutrality goals from EcoVadis Published Better Practice Award
Slide 16: Committed to a Sustainable Future
Committed to a Sustainable Future SUSTAINABILITY OF ENVIRONMENTAL OUR PEOPLE SUSTAINABILITY PRODUCTS AND SERVICES STEWARDSHIP AND COMMUNITY GOVERNANCE • Driving profitability and growth, • Tracking emissions metrics • Committed to embedding DEI in • Assigned Board-level oversight with focus on energ
Slide 17: Energy Systems at a Glance
Energy Systems at a Glance FY 2024 KEY STATISTICS1 Net Adj. Operating Global Customers Market Share Sales Earnings2 Installed Base $1.6B $87M 1M+ Multi-National North America - leading market position Systems in Operation Blue Chip Global - high growth opportunities Serving Diverse and Critical End
Slide 18: Well-Positioned to Grow in Attractive Addressable Market
Well-Positioned to Grow in Attractive Addressable Market DRIVERS $400B+ M AR K E T D Y N AM I C S Total Global Network Resilient Power Everywhere Infrastructure Market • Network expansion and capex funded build programs • Ongoing operational ~$20B+ maintenance of networks and facilities Serviceable
Slide 19: Motive Power at a Glance
Motive Power at a Glance FY 2024 KEY STATISTICS1 Installed Base Net Adj. Operating Global Global Charge Countries Sales Earnings2 Market Share Points $1.5B $215M ~500K 121 ~22% Solutions Utilized by Electric Forklifts, Mining, and Other Commercial Electric-Powered Vehicles B R AN D S / P R O D U C T
Slide 20: Well-Positioned to Grow at or Above Market
Well-Positioned to Grow at or Above Market DRIVERS F U T U R E S TAT E Fully-Automated Warehouse ~$6.8B Electrification • Decarbonization • Environmental health and safety Serviceable • Lower cost of operation vs. ICE • Lithium technology enablement Addressable Market Automation • Operational effici
Slide 21: Specialty at a Glance
Specialty at a Glance FY 2024 KEY STATISTICS1 Net Adj. Operating Transportation Customers Market Share3 Sales Earnings2 Installed Base3 Served $536M $31M 1.8M 700+ 30% Trucks U.S. OEM Truck Market T R A N S P O R TAT I O N A E R O S PA C E A N D D E F E N S E 40% Key Innovations Revenue by Key Innov
Slide 22: Positioned to Further Capture Share in Large and Attractive Markets
Positioned to Further Capture Share in Large and Attractive Markets DRIVERS M AR K E T D Y N AM I C S High-Density Resilient Power ~$3.1B • Increasing fleet electronic loads • Currently 9% of SAM – Vehicle tracking systems – Audio / infotainment / GPS • 31% OEM – Stop - start Serviceable • 30% OES –
Slide 23: Bren-Tronics Acquisition Closed July 26, 2024
Bren-Tronics Acquisition Closed July 26, 2024 E X PA N D S P R E S E N C E I N C R I T I C A L D E F E N S E A P P L I C AT I O N S HIGHLIGHTS • Legacy of innovation since 1973 and strong relationship with DOD • Highly complementary portfolio of products for military and defense • Strong engineering
Slide 24: Powering the Future through Energy Management Capabilities
Powering the Future through Energy Management Capabilities S M AR T E N E R G Y L O AD & E N E R G Y E C O S Y S T E M System Input System Output EV-Pedestal 150kW Commercial Solar Fast Charge & Storage 600kW Lithium-Ion Batteries Commercial Buildings and Multi-Family Units Grocery Stores Grid Peak
Slide 25: Accelerating Innovation with Fast Charge and Storage
Accelerating Innovation with Fast Charge and Storage E N D - TO - E N D S O L U T I O N KEY BENEFITS • Smart energy and load management ecosystem for reliable fast charging solutions • Solar panel integration in decentralized system enables power in rural areas • Modularity allows growth with the ma
Slide 26: Significant Opportunity in Attractive and Growing Market
Significant Opportunity in Attractive and Growing Market TAR G E T M AR K E T M AR K E T P U B L I C D C C H AR G E R S 1 OPPORTUNITY U.S. CHARGER DEMAND $217B 27.5 2 (M) 1.3 Global Public DCFC Hardware 0.7 Spend Estimate 2022 – 2030 0.6 0.5 0.5 0.1 0.1 0.1 0.0 $7.5B+ Residential Retail & On-the-Go
Slide 27: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy F U T U R E PR IO R ITIES PRIORITIES FY’21 – FY’24 ($M, cumulative) • Continue TPPL capacity investments & end-to-end solutions • Optimize EOS to drive additional operational efficiencies 1 Invest in Organic Growth (CapEx) ~$320 • Accelerate domestic-sourced l
Slide 28: Looking Ahead: Q2'25 and FY'25 Guidance
Looking Ahead: Q2’25 and FY’25 Guidance AS S U M P T I O N S Q2’25 FY’25 Q2’25 • Incremental revenue and EPS from Bren-Tronics Net Sales $880M – $920M $3,735M – $3,885M • Modest QoQ improvement in ES N.A. Communications spend • Modest Transportation aftermarket volume growth in Specialty • Continued
Slide 29: Compelling Investment Thesis
Compelling Investment Thesis 1 2 3 Strategically positioned in Transformed company expanding markets driven Invigorated leadership delivering innovative by global megatrends team executing a clear solutions and defining the strategy for accelerated future of energy transition earnings growth Playing
Slide 31: Inflation Reduction Act (IRA) Enables…
Inflation Reduction Act (IRA) Enables… B AC K G R O U N D ENERSYS COMMITMENT AN N U AL B E N E F I T S 1 $369B in New Tax Credits Accelerating Lithium Strategy Recorded as reduction to COGS • Law in effect 1/1/23 - 12/31/32 with • Invest in U.S. domestic energy growth ‒ Securing domestic lithium cel
Slide 33: Q1'25 Performance
Q1’25 Performance $853M $106M $121M $1.98 ($26M) Net Sales Adj Op Adj Adj EPS1 Free Cash Earnings1 EBITDA1 Flow1 (6%) Y/Y (1%) Y/Y (1%) Y/Y +5% Y/Y ($85M) Y/Y Adj Op Earnings1 Adj EBITDA1 Margin of 12.4% Margin of 14.2% Adjusted Gross Profit1 Margin of 28.0% up +120bps vs prior year September 2024 1
Slide 34: Q1'25 Results
Q1’25 Results N E T S AL E S AD J O P E AR N I N G S 1 & M AR G I N $909 $853 Y/Y Change $107 $106 (3%) volume (2%) price 11.8% 12.4% (1%) FX Q1'24 Q1'25 Q1'24 Q1'25 AD J E B I T D A 1 & M AR G I N AD J D I L U T E D E P S 1 $122 $121 $1.89 $1.98 13.5% 14.2% Q1'24 Q1'25 Q1'24 Q1'25 Delivered Adj. EP
Slide 35: Balance Sheet, Cash Flow and Leverage
Balance Sheet, Cash Flow and Leverage S E L E C T E D B AL AN C E S H E E T M E T R I C S 1 S E L E C T E D C AS H F L O W M E T R I C S 2 ($M) Q4’24 Q1’25 ($M) Q1’24 Q1’25 Cash and Cash Equivalents $333 $344 Cash Flow from Operations $75 $10 Net Debt3 $511 $565 Net Leverage Ratio3 1.0x 1.1x CapEx (
Slide 37: Reconciliations of GAAP to Non-GAAP Financial Measures
Reconciliations of GAAP to Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with U.S. Generally Accepted Accounting Principles, ("GAAP"). EnerSys' management uses the non-GAAP financial measures “adjusted Net earnings”, “adju
Slide 44: Non-GAAP Reconciliation
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Y E A R Fiscal year ended March 31, (1) The $51.7 million adjustment to EBITDA in fiscal 2023 primarily related to $26.4 million of non-cash stock ($ in millions, except ratios) 2023 2022 2021 2020 2019 2018 compensation, $22.4 million of restruct
Slide 45: Non-GAAP Reconciliation
Non-GAAP Reconciliation L E V E R A G E R AT I O B Y Q U A R T E R (1) The $81.5 million adjustment to EBITDA in the last twelve months ending June 30, 2024 primarily related to $29.7 million of non-cash stock compensation, $40.4 million of restructuring and other exit charges, impairment of indefin
Slide 48: Key Performance Indicator
Key Performance Indicator P R I M A R Y O P E R AT I N G C A P I TA L As part of managing the performance of our business, we monitor the level of primary operating capital, and its ratio to net sales. We define primary operating capital as accounts receivable, plus inventories, minus accounts payab
Slide 49: Thank you.
Thank you. For more information visit us at www.enersys.com World Headquarters EnerSys EMEA EnerSys APAC 2366 Bernville Road EH Europe GmbH No. 85, Tuas Avenue 1 Reading, PA 19605 USA Baarerstrasse 18 Singapore 639518 +1 610-208-1991 / +1 800-538-3627 6300 Zug Switzerland +65 6558 7333

EnerSys — Investor Presentation (September 2024) on 6ix

EnerSys — Investor Presentation (September 2024)

Slide 1: Investor Presentation September 2024

Slide 2: Forward Looking Statements

Slide 3: EnerSys at a Glance

Slide 4: Well-Positioned for Long-Term Profitable Growth

Slide 5: Energized Leadership Team Focused on Execution and Accountability

Slide 6: Experienced and Diversified Board of Directors

Slide 7: Empowering Our Team to Innovate and Deliver Differentiated Solutions

Slide 8: Executing Our Strategic Vision | Significantly Transformed Portfolio

Slide 9: Product Portfolio Evolution | Transformed to End-to-End Energy Solutions Provider

Slide 10: Business Segments

Slide 11: Foundational Core Modular Platforms

Slide 12: Addressing Global Megatrends in Attractive and Diverse End Markets

Slide 13: Leveraging Our Sustainable Competitive Advantages

Slide 14: Strategic Priorities Driving Long Term Growth

Slide 15: Our Sustainability Journey

Slide 16: Committed to a Sustainable Future

Slide 17: Energy Systems at a Glance

Slide 18: Well-Positioned to Grow in Attractive Addressable Market

Slide 19: Motive Power at a Glance

Slide 20: Well-Positioned to Grow at or Above Market

Slide 21: Specialty at a Glance

Slide 22: Positioned to Further Capture Share in Large and Attractive Markets

Slide 23: Bren-Tronics Acquisition Closed July 26, 2024

Slide 24: Powering the Future through Energy Management Capabilities

Slide 25: Accelerating Innovation with Fast Charge and Storage

Slide 26: Significant Opportunity in Attractive and Growing Market

Slide 27: Disciplined Capital Allocation Strategy

Slide 28: Looking Ahead: Q2'25 and FY'25 Guidance

Slide 29: Compelling Investment Thesis

Slide 30: Appendix

Slide 31: Inflation Reduction Act (IRA) Enables…

Slide 32: Financial Update

Slide 33: Q1'25 Performance

Slide 34: Q1'25 Results

Slide 35: Balance Sheet, Cash Flow and Leverage

Slide 36: Non-GAAP Reconciliations

Slide 37: Reconciliations of GAAP to Non-GAAP Financial Measures

Slide 38: Non-GAAP Reconciliation

Slide 39: Non-GAAP Reconciliation

Slide 40: Non-GAAP Reconciliation

Slide 41: Non-GAAP Reconciliation

Slide 42: Non-GAAP Reconciliation

Slide 43: Non-GAAP Reconciliation

Slide 44: Non-GAAP Reconciliation

Slide 45: Non-GAAP Reconciliation

Slide 46: Non-GAAP Reconciliation

Slide 47: Non-GAAP Reconciliation

Slide 48: Key Performance Indicator

Slide 49: Thank you.