Worthington Enterprises, Inc. · NYSE:WOR
Worthington Enterprises — KeyBanc Capital Markets Industrials & Basic Materials Conference 2024
30 slides from Worthington Enterprises's conference presentation, May 30, 2024
Slide 1: Industrial & Basic Materials Conference
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Industrial & Basic Materials Conference MAY 30, 2024
Slide 2: Notes to Investors
Notes to Investors FORWARD-LOOKING STATEMENTS. Selected statements in this presentation constitute “forward-looking statements,” as that term is used in the Private Securities Litigation Reform Act of 1995 (the “Act”). Worthington Enterprises, Inc. (the “Company” or “Worthington”) wishes to take adv
Slide 3: Worthington Enterprises
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx WORTHINGTON ENTERPRISES A market-leading designer and manufacturer of innovative Building Products, Consumer Products, and Sustainable Energy So
Slide 4: Worthington Enterprises Key Investment Highlights
Worthington Enterprises FOUNDED IN KEY INVESTMENT HIGHLIGHTS 1955 • Established Portfolio of Market-Leading Brands with High Barriers to Entry NET SALES OF • Strong Underlying Secular Trends Enabling Steady $1.3 BILLION1 Long-Term Growth Adj. EBITDA of $279 million • Business Model Drives High Free
Slide 5: Established Portfolio of Market-Leading Brands…
Established Portfolio of Market-Leading Brands… 80%+ of Adjusted EBITDA comes from brands and products with leading market positions Ceiling Metal Hand Torch Camping Portable Vertical Well Water Suspension Framing And Fuels Fuel Helium Tanks Residential Tanks Systems Heating Tanks Note: FY2023 perio
Slide 6: …With High Barriers-to-Entry
High Margin, Asset-Light Business Model, Generating Strong Cash Flow …With High Barriers-to-Entry and Returns Highly Engineered Solutions – Meeting Rigorous Specifications in Highly Regulated Markets Reliability, Speed & Product Quality – Exceptional Quality, Service, and Supply Chain Solutions Robu
Slide 7: Our Products Serve Markets that are Well Positioned to Capitalize on Strong Secular Trends
Our Products Serve Markets that are Well Positioned to Capitalize on Strong Secular Trends GOVERNMENT STIMULUS ENVIRONMENTAL RE-SHORING AND AND SUPPORT POPULATION SHIFT INVESTMENT NEAR SHORING Ceiling Metal HVAC H2 & CNG Propane Refillable Lawn & BBQ / Foam & Industrial Metal HVAC Tools Systems Solu
Slide 8: Business Model Drives Strong Returns
Business Model Drives Strong Returns Net Sales ($M) Adjusted EBITDA1 ($M) 13% 21% CAGR CAGR $319 $302 $1,418 $279 $1,309 $1,296 $1,112 $205 FY2021 FY2022 FY2023 TTM FY2021 FY2022 FY2023 TTM Note: TTM figures as of Q3 FY2024. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable
Slide 9: Worthington Business System Accelerates Our Growth and Profitability
Worthington Business System Accelerates Our Growth and Profitability Our deeply-held Philosophy is rooted in the Golden Rule – we treat our customers, employees, investors, and suppliers as we would like to be treated • Through continuous transformation we drive higher margins within Manufacturing,
Slide 10: Innovation for Highly Engineered Products Drives Incremental Sales and Margin
Innovation for Highly Engineered Products Drives Incremental Sales and Margin 01 02 03 BUILDING EXPANDING DISRUPTING THE CORE THE CORE THE CORE Improving existing Transformational Strength in channel products with a innovations driving management to drive leading brand sustainable value margin expan
Slide 11: Guided by Our Philosophy
Guided by Our Philosophy A People-First, Performance-Based Culture Culture of Health & Positive Diversity & Profit-Sharing Engagement Safety Impact Inclusion Incentives Strong sense of Putting our people Partnering with Valuing diversity of Committed to best- belonging and first and ensuring the org
Slide 12: Low Leverage and Ample Liquidity Provides Financial Flexibility
Low Leverage and Ample Liquidity Provides Financial Flexibility Strong Leverage1: 1.1x Balance Sheet Total Debt / TTM Adj. EBITDA Commitment to Maintaining Financial Investment Grade Rating Flexibility Ample Liquidity2: $727M Disciplined Focused on growth and Capital rewarding shareholders Allocatio
Slide 13: Building Products At-a-Glance
Building Products At-a-Glance KEY FIGURES Heating (TTM AS OF Q3 FY24) $640M 35% $222M Facilitating the transition away from fuel oil, as well as providing back-up power solutions. Water NE T S AL E S AD J . E B I TD A M AR GI N AD J . E B I TD A 1 Key component in providing safe and clean drinking w
Slide 14: Consumer Products At-a-Glance
Consumer Products At-a-Glance KEY FIGURES Tools Outdoor Living (TTM AS OF Q3 FY24) Hand-held torches, micro torches, lighters, accessories and fuel for constructing, fixing, making and Torches, fuel and accessories, including the first in-market digital fuel gauge, for outdoor adventures, $519M 16%
Slide 15: A Compelling Financial Profile
A Compelling Financial Profile Adj. EBITDA Net Sales Adj. EBITDA1 Margin $1,296M $279M 22% Net Working Fixed Assets Net Debt Capital2 $302M $268M $72M Note: TTM figures as of Q3 FY2024. 1 Refer to appendix for reconciliation of Adjusted EBITDA to the comparable GAAP measure. 2 Net Working Capital is
Slide 16: Long-Term Capital Allocation Priorities
Long-Term Capital Allocation Priorities • Brand, Innovation, and Channel investments ORGANIC GROWTH • Investments in automation and R&D initiatives • High-returning Capex investments • Build out core businesses and selectively grow into new markets TARGETED M&A • Create value via channel and supply
Slide 17: Planned Acquisition of Hexagon Ragasco & Formation of Sustainable Energy Solutions JV
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Planned Acquisition of Hexagon Ragasco & Formation of Sustainable Energy Solutions JV
Slide 18: Planned Acquisition of Hexagon Ragasco and Formation of SES Joint Venture
On May 29, 2024, Worthington Enterprises announced the planned acquisition of Hexagon Ragasco and the formation of a Sustainable Energy Solutions Joint Venture with Hexagon Composites Sustainable Energy Solutions (SES) Joint Venture (JV) • Sold 49% interest in SES segment to Hexagon Composites for a
Slide 19: Hexagon Ragasco Acquisition
Hexagon Ragasco Acquisition Hexagon Ragasco will become part of the Building Products segment HISTORICAL • Manufacturing facility in Raufoss, Norway with approximately 130 employees FINANCIAL METRICS ($ MILLIONS) • Calendar year 2023 Net sales of approximately $64M and adjusted EBITDA of $13M NET SA
Slide 20: Hexagon Ragasco operates a high volume, highly automated manufacturing facility in Raufoss, Norway
Hexagon Ragasco operates a high volume, highly automated manufacturing facility in Raufoss, Norway Location + Capacity Key Highlights • High overall equipment effectiveness and mature world class manufacturing developed over the years • Full traceability and advanced data collection throughout the p
Slide 21: Hexagon Ragasco fits well within the Building Products Segment
Hexagon Ragasco fits well within the Building Products Segment and aligns with our acquisition strategy to drive profitable growth Strategic rationale • Expands LPG platform in Building Products segment • Adds a global market leader in lightweight LPG composite cylinders • Enhances manufacturing exp
Slide 22: Appendix
ibdroot\projects\IBD-NY\trillium2020\664375_1\16. Investor Day Presentations\03. WOR Enterprises\2023.09.29 - Investor Day - WOR Enterprises Shell_v78.pptx Appendix
Slide 23: Reconciliation of Non-GAAP Measures – FY24 Q3
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY24 Q3 (in millions) 23
Slide 24: Reconciliation of Non-GAAP Measures – FY23 Q3
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY23 Q3 (in millions) 24
Slide 25: Reconciliation of Non-GAAP Measures – FY24 Q3 TTM
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY24 Q3 TTM (in millions) 25
Slide 26: Reconciliation of Non-GAAP Measures – FY23
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY23 (in millions) 26
Slide 27: Reconciliation of Non-GAAP Measures – FY22
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY22 (in millions) Worthington Sustainable Enterprises Consumer Building Energy Corporate & Consolidated Products Products Solutions Other Net sales $ 1,309.2 $ 504.9 $ 673.4 $ 130.9 n/a Operating income (loss) $ 48.7 $ 81.7 $ 25.7 $ (6.2
Slide 28: Reconciliation of Non-GAAP Measures – FY21
Worthington Enterprises Reconciliation of Non-GAAP Measures – FY21 (in millions) 28
Slide 29: Use of Non-GAAP Measures and Definitions
Use of Non-GAAP Measures and Definitions Effective December 1, 2023, the Company shifted management responsibilities for a propane tank manufacturing facility that was previously reported within the Consumer Products segment to the Building Products segment. Segment financial data included in these
Slide 30: Use of Pro Forma Financial Information
Use of Pro Forma Financial Information PRO FORMA FINANCIAL INFORMATION. These materials include certain financial data and operating metrics that are presented on a pro forma basis to illustrate the estimated effects of the Separation of Worthington Steel from the historical combined company, which