Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — Q4 2023 Earnings Presentation
27 slides from Worthington Enterprises's earnings presentation, Jun 29, 2023
Slide 1: Q4 FY2023 Results / Business Update
Q4 FY2023 Results / Business Update
Slide 2: Vision
VISION TO BE THE TRANSFORMATIVE PARTNER FOR OUR CUSTOMERS, A POSITIVE FORCE IN OUR COMMUNITIES AND EARN EXCEPTIONAL RETURNS 2
Slide 3: Corporate Citizenship & Sustainability
CORPORATE CITIZENSHIP & SUSTAINABILITY Long history of keeping employees safe, practicing good citizenship and protecting the environment FY2022 HIGHLIGHTS AWARDS & RECOGNITIONS Top-ranked company on IBD’s 100 Best ESG companies for 2022 Newsweek America’s Most Responsible Companies for 2023 For mor
Slide 4: $4.9B Fiscal 2023 Net Sales
$4.9B FISCAL 2023 NET SALES 5/31/23 NET SALES BY END-MARKETS ADJ. EBITDA BY SEGMENT TTM* $514.9 MILLION 12% 14% 7% $93.8 5% 3% 9% 5% $188.1 8% $222.5 37% Automotive Construction $3.3 $7.2 Consumer Products Building Products Steel Consumer Products Machinery & Equipment Agriculture Building Products
Slide 5: $1.2B of Sales in Q4 of Fiscal 2023
$1.2B OF SALES IN Q4 OF FISCAL 2023 5/31/23 NET SALES BY END-MARKETS ADJ. EBITDA BY SEGMENT* $211.4 MILLION 12% 15% 7% 4% $112.6 $29.8 4% 8% 6% 7% $63.8 37% $0.9 Automotive Construction $4.3 Consumer Products Building Products Steel Consumer Products Building Products Sustainable Energy Solutions Ma
Slide 6: Financial Goals
F IN A N CIA L G O A L S • INCREASE MARGINS / DECREASE ASSET INTENSITY • REDUCE EARNINGS VOLATILITY • MODEST LEVERAGE / AMPLE LIQUIDITY (INVESTMENT GRADE) • BALANCED CAPITAL ALLOCATION • RIGOROUS CAPITAL DISCIPLINE 6
Slide 7: Strong Capital Structure & Liquidity
STRONG CAPITAL STRUCTURE & LIQUIDITY Strong balance sheet with investment grade credit ratings and significant liquidity available enables financial flexibility and shareholder returns Corporate credit ratings: BBB / Baa2 800 700 600 500 $500 $ Millions 400 300 $175 200 $244 100 $200 $150 0 $32 $32
Slide 8: 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 OVER $1.9 BILLION OF CAPITAL DEPLOYED IN PAST 5 YEARS SINCE START OF FY2019 ✓ Reinvest in the business to create value and sup
Slide 9: Consolidated Results
CONSOLIDATED RESULTS $ millions, except EPS FY2021 FY2022 FY2023 FY2022 – Q4 FY2023 – Q4 Sales $3,171 $5,242 $4,916 $1,520 $1,229 Adjusted EBIT* $396 $517 $402 $111 $183 % of sales* 12.5% 9.9% 8.2% 7.3% 14.9% Adjusted EBITDA* $483 $615 $515 $139 $211 % of sales* 15.2% 11.7% 10.5% 9.2% 17.2% EPS* $5.
Slide 10: Update on Separation into Two Market-Leading, Independent Public Companies
UPDATE ON SEPARATION INTO TWO MARKET-LEADING, INDEPENDENT PUBLIC COMPANIES On September 29th, 2022, Worthington Industries announced plans to separate its Steel Processing business, unlocking value by creating a new standalone public company Transaction Rationale Pro-Forma Structure Timing & Approva
Slide 11: Supplemental Data
4 WORTHINGTON INDUSTRIES SUPPLEMENTAL DATA
Slide 12: Steel Processing Financials
STEEL PROCESSING FINANCIALS $ millions FY2021 FY2022 FY2023 FY2022 – Q4 FY2023 – Q4 Sales $2,059 $3,933 $3,498 $1,120 $860 Adj. EBIT* $208 $203 $122 $17 $96 % of sales* 10.1% 5.2% 3.5% 1.5% 11.2% Adj. EBITDA* $249 $259 $188 $34 $113 % of sales* 12.1% 6.6% 5.4% 3.0% 13.1% Capital Expenditures $28 $36
Slide 13: Consumer Products Financials
CONSUMER PRODUCTS FINANCIALS $ millions FY2021 FY2022 FY2023 FY2022 – Q4 FY2023 – Q4 Sales $524 $636 $686 $186 $181 Adj. EBIT* $75 $94 $78 $29 $26 % of sales* 14.3% 14.8% 11.4% 15.8% 14.2% Adj. EBITDA* $87 $107 $94 $33 $30 % of sales* 16.7% 16.8% 13.7% 17.5% 16.4% Capital Expenditures $13 $13 $14 $2
Slide 14: Building Products Financials
BUILDING PRODUCTS FINANCIALS $ millions FY2021 FY2022 FY2023 FY2022 – Q4 FY2023 – Q4 Sales $402 $542 $586 $173 $142 Adj. EBIT* $118 $217 $205 $64 $59 % of sales* 29.3% 40.0% 34.9% 36.8% 41.6% Adj. EBITDA* $133 $233 $222 $68 $64 % of sales* 33.2% 43.0% 38.0% 39.2% 44.9% Capital Expenditures $23 $31 $
Slide 15: Sustainable Energy Solutions Financials
SUSTAINABLE ENERGY SOLUTIONS FINANCIALS $ millions FY2021 FY2022 FY2023 FY2022 – Q4 FY2023 – Q4 Sales $135 $131 $146 $41 $45 Adj. EBIT* $5 ($6) $1 ($2) $3 % of sales* 3.7% -4.8% 0.6% -4.1% 5.7% Adj. EBITDA* $12 $0 $7 ($0) $4 % of sales* 8.6% 0.2% 5.0% -0.2% 9.5% Capital Expenditures $9 $6 $6 $2 $1 V
Slide 16: Consolidated Adjusted EBITDA / Free Cash Flow
SUPPLEMENTAL DATACONSOLIDATED ADJUSTED EBITDA / FREE CASH FLOW FY 21 FY 22 FY 23 FY 22 FY 23 Annual Annual Annual Q4 Q4 Net Income $ 723.8 $ 379.4 $ 256.5 $ 80.3 $ 129.9 Interest Expense 30.3 31.3 26.8 8.2 4.5 Taxes 176.3 115.0 76.2 25.0 40.5 EBIT $ 930.4 $ 525.7 $ 359.5 $ 113.4 $ 174.9 Restructurin
Slide 17: Reconciliation of Adjusted EPS Q4
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS Q4 (FY2023/FY2022) Three Months Ended May 31, 2023 Net Earnings Attributable to Operating Earnings Before Income Tax Expense Controlling Earnings per Income Income Taxes (Benefit) Interest(1) Diluted Share GAAP $ 122.6 $ 174.7 $ 40.5 $ 129.9 $ 2.61 Im
Slide 18: Reconciliation of Adjusted EPS FY2023/FY2022
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS (FY2023/FY2022) Fiscal Year Ended May 31, 2023 Net Earnings Attributable to Operating Earnings Before Income Tax Expense Controlling Earnings per Income Income Taxes (Benefit) Interest(1) Diluted Share GAAP $ 212.4 $ 345.4 $ 76.2 $ 256.5 $ 5.19 Impair
Slide 19: Reconciliation of Adjusted EPS FY2021
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EPS (FY2021) Fiscal Year Ended May 31, 2021 Net Earnings Income Tax Attributable to Operating Earnings Before Expense Controlling Earnings per Income Income Taxes (Benefit) Interest(1) Diluted Share GAAP $ 167,473 $ 917,717 $ 176,267 $ 723,795 $ 13.42 Imp
Slide 20: Reconciliation of Adjusted EBIT & EBITDA – FY2023 Q4
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2023 Q4 Three Months Ended May 31, 2023 Steel Consumer Building Sustainable Processing Products Products Energy Solutions Other Consolidated Volume (tons/units) 1,025,075 20,109,755 2,747,620 162,894 n/a n/a Net Sales $ 861.1 $ 181.2 $ 1
Slide 21: Reconciliation of Adjusted EBIT & EBITDA – FY2022 Q4
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2022 Q4 Three Months Ended May 31, 2022 Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 1,042,465 22,008,912 3,469,962 181,026 n/a n/a Net Sales $ 1,119.8 $ 186.2 $
Slide 22: Reconciliation of Adjusted EBIT & EBITDA – FY2023
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2023 Fiscal Year Ended May 31, 2023 Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 3,842,828 78,234,587 10,532,434 573,853 n/a n/a Net Sales $ 3,497.9 $ 686.3 $ 58
Slide 23: Reconciliation of Adjusted EBIT & EBITDA – FY2022
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2022 Fiscal Year Ended May 31, 2022 Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 4,170,931 82,393,013 11,707,258 610,811 n/a n/a Net Sales $ 3,933.0 $ 636.5 $ 54
Slide 24: Reconciliation of Adjusted EBIT & EBITDA – FY2021
SUPPLEMENTAL DATA RECONCILIATION OF ADJUSTED EBIT & EBITDA – FY2021 Fiscal Year Ended May 31, 2021 Steel Consumer Building Sustainable Energy Processing Products Products Solutions Other Consolidated Volume (tons/units) 4,066,773 74,656,594 11,181,873 897,261 33,419 n/a Sales $ 2,059.4 $ 523.7 $ 402
Slide 25: Notes to Investors
NOTES TO INVESTORS FORWARD LOOKING STATEMENTS. Worthington Industries, Inc. (the “Company” or “Worthington”) 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 relating to the intended separat
Slide 26: Notes to Investors
NOTES TO INVESTORS changes in customer demand, inventories, spending patterns, product choices, and supplier choices; risks associated with doing business internationally, including economic, political and social instability (especially in light of Russia’s invasion of Ukraine), foreign currency exc
Slide 27: Contact
CONTACT 614.840.4663 Marcus.Rogier@WorthingtonIndustries.com 2 7
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