EnerSys · NYSE:ENS

EnerSys — Q2 FY2022 Earnings Presentation

17 slides from EnerSys's earnings presentation, Nov 11, 2021

  1. Slide 1: 2nd Quarter Earnings Conference Call

    2nd Quarter Earnings Conference Call November 11, 2021 November 11, 2021 EnerSys 2021. All Rights Reserved

  2. Slide 2: Forward-Looking Information

    David M. Shaffer Director, President and Chief Executive Officer Michael J. Schmidtlein Executive Vice President and Chief Financial Officer Forward-Looking Information As a reminder, we will be presenting certain forward-looking statements on this call that are based on Management’s current expecta

  3. Slide 3: Record Backlog, Continued Inflation & Supply Delays

    Record Backlog Continued Inflation & Supply Delays $791M +12% • Record market demand across all segments Revenue vs Q2’21 • Backlog over $1B, >2X normal levels; backlog growth led by ES – more than COVID recovery • MP & Specialty better than forecast; ES lagged • Supply chain masking underlying prof

  4. Slide 4: Energy Systems

    Energy Systems ➔ Robust end-markets, record backlog, greatest supply chain impacts • Q2 order rates +57% vs pre-COVID Q2’F’20 $370M +$9% Revenue vs Q2’21 • Large initial CA PUC backup orders received • Global economic environment suppressing OE margin ‒ Complex supply chain with greater exposure to

  5. Slide 5: Motive Power

    Motive Power ➔ Demand at pre-COVID levels; sales & OE outperformed $321M +22% • Backlog a record $270M+ with positive runway Revenue vs Q2’21 coming out of European holiday season • Margins up due to pricing, mix, & OpEx efficiencies; OE 18% higher than pre-COVID Q2’F’20 • NexSys® TPPL & lithium var

  6. Slide 6: Specialty

    Specialty ➔ Another solid quarter, record backlog $101M -3% • Solid Trans and A&D performance, paced by Revenue vs Q2’21 supply issues • Q2 delayed deliveries recovered in Q3 • $1.2B TPPL capacity and productivity improvements on track exiting FY’22 $12M +.4% • Continued robust Trans market and shar

  7. Slide 7: Product Road & Developments

    Product Road & Developments ➔ Exciting technological advancements • Launched 11 new variants for MP with more to come • Lithium demand growing in ES ‒ Initial CPUC orders taken ‒ Positive UL testing in Telecom & residential home energy storage • TouchSafe development with Corning advancing; Customer

  8. Slide 8: Outlook

    Outlook Near-term: • Diligent execution mitigating supply chain issues & rising costs through ongoing aggressive pricing actions, alternate sourcing, redesigns & manning • Continued progress on new product initiatives Future - Immense opportunities driven by market mega-trends: • Massive 5G buildout

  9. Slide 9: 2nd Quarter Fiscal 2022 Results

    2nd Quarter Fiscal 2022 Results ($ Millions) Q2 F'22 Q1 F'22 Q2 F'21 SALES $791.4 $814.9 $708.4 GROSS PROFIT 178.8 (23%) 193.2 (24%) 177.6 (25%) OP EARNINGS $ $61.4 $75.1 $66.2 OP EARNINGS % 7.8% 9.2% 9.3% EPS $1.01 $1.25 $1.00 Presented on an as adjusted basis. November 11, 2021 EnerSys 2021. All R

  10. Slide 10: 2nd Qtr. YoY Sales By Line of Business & Region

    F’22 2nd Qtr. YoY Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 Q2 F'21 Q2 $ % Volume Price M&A Fx Energy Systems $370 $341 $29 9% 9% -1% - 1% Motive Power $321 $264 $57 22% 20% 2% - - Specialty $101 $104 ($3) -3% -8% 5% - - Total Net Sales $791 $708 $83 12% 11% 1% - - Fav/(Unfav)

  11. Slide 11: 2nd Qtr. Sequential Sales By Line of Business & Region

    F’22 2nd Qtr. Sequential Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 Q2 F'22 Q1 $ % Energy Systems $370 $371 ($1) 0% Motive Power $321 $336 ($15) -5% Specialty $101 $108 ($7) -6% Total Net Sales $791 $815 ($23) -3% -3% Organic, 1% Price, 0% Acquisitions, -1% Fx Fav/(Unfav) F'22

  12. Slide 12: 2nd Qtr. Operating Earnings by LoB

    F’22 2nd Qtr. Operating Earnings by LoB ($ Millions) Fav/(Unfav) Year Over Year F'22 Q2 F'21 Q2 $ % Operating Earnings Energy Systems $8.5 $30.1 ($21.6) -72% 2.3% 8.8% Motive Power 41.0 24.2 $16.8 69% 12.8% 9.2% Specialty 11.9 11.9 $0.0 0% 11.8% 11.4% Total Operating Earnings $61.4 $66.2 ($4.8) -7%

  13. Slide 13: 2nd Qtr. Net Earnings and EPS

    F’22 2nd Qtr. Net Earnings and EPS ($ Millions, Except Per Share Amounts) Fav/(Unfav) F'22 Q2 F'21 Q2 $ % Operating Earnings $61.4 $66.2 ($4.8) -7% As % Net Sales 7.8% 9.3% (1.5)Pts. Book Tax Rate 16% 17% Net Earnings $43.5 $43.2 $0.3 1% As % Net Sales 5.5% 6.1% (0.6)Pts. EPS diluted $1.01 $1.00 $0.

  14. Slide 14: YTD Sales By Line of Business & Region

    F’22 YTD Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 F'21 $ % Volume Price M&A Fx Energy Systems $741 $694 $47 7% 6% -1% - 2% Motive Power $657 $527 $130 25% 21% 1% - 3% Specialty $208 $193 $16 8% 4% 3% - 1% Total Net Sales $1,606 $1,413 $193 14% 11% 1% - 2% Fav/(Unfav) F'22 F'2

  15. Slide 15: YTD Net Earnings and EPS

    F’22 YTD Net Earnings and EPS ($ Millions, Except Per Share Amounts) Fav/(Unfav) F'22 F'21 $ % Operating Earnings $136.5 $127.4 $9.1 7% As % Net Sales 8.5% 9.0% (0.5)Pts. Book Tax Rate 17% 19% Net Earnings $97.9 $82.6 $15.3 19% As % Net Sales 6.1% 5.8% 0.3 Pts. EPS diluted $2.26 $1.92 $0.34 18% Avg.

  16. Slide 16: Financial Position Highlights

    Financial Position Highlights ($ Millions) Q2 YTD Fiscal Year 2022 2021 Cash & Cash Equivalents $407.5 $451.8 Net Debt (Gross Debt − Investments) $814.1 $684.3 Net Cash from Operations YTD ($65.6) $358.4 Capital Expenditures YTD $34.6 $70.0 Leverage Ratio (per US Credit Agreement) 2.0X 1.7X Primary

  17. Slide 17: Updated 5-Year Model

    Updated 5-Year Model ($ Millions) ROBUST OPPORTUNITIES RE-AFFIRMED SUPPLY COVID CHAIN 5-Year model re-affirmed with one-year lag to October 2019 Investor Day model November 11, 2021 EnerSys 2021. All Rights Reserved 17

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