EPAC
Investor Overview
November 2024
Forward-Looking Statements
and Non-GAAP Measures
Statements made in this presentation that are not historical are forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. In addition to statements with respect to guidance, the terms "outlook," "guidance," "may," "should," "could," "anticipate," "believe," "estimate," "expect," "objective," "plan," "project" and similar expressions are intended to identify forward-looking statements. Such forward-looking statements are subject to inherent risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements. In addition to the assumptions and other factors referred to specifically in connection with such statements, risks and uncertainties that may cause actual results or events to differ materially from those contemplated by such forward-looking statements include, without limitation, general economic uncertainty, market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, supply chain risks, including disruptions in deliveries from suppliers due to political tensions or the imposition, or threat of imposition, of tariffs, which could be affected by the outcome of the upcoming U.S. presidential election, the impact of geopolitical activity, including the invasion of Ukraine by Russia and international sanctions imposed in response thereto, as well as armed conflicts in the Middle East, including the impact on shipping in the Red Sea, the ability of the Company to achieve its plans or objectives related to its growth strategy, market acceptance of existing and new products, market acceptance of price increases, successful integration of acquisitions, the impact of dispositions and restructurings, the ability of the Company to continue to achieve its plans or objectives related to the ASCEND program, including any assumptions underlying its calculation of expected incremental operating profit or program investment, operating margin risk due to competitive pricing and operating efficiencies, risks related to reliance on independent agents and distributors for the distribution and service of products, material, labor, or overhead cost increases, tax law changes, foreign currency risk, interest rate risk, commodity risk, tariffs, litigation matters, cybersecurity risk, impairment of goodwill or other intangible assets, the Company's ability to access capital markets and other risks and uncertainties that may be referred to or noted in the Company's reports filed with the Securities and Exchange Commission from time to time, including those described in the Company's Form 10-K for the fiscal year ended August 31, 2024. Enerpac Tool Group disclaims any obligation to publicly update or revise any forward-looking statements results, new information, future events or any other reason. All estimates of future performance are as of October 15, 2024.
This presentation also contains financial measures that are not measures presented in conformity with GAAP. These non-GAAP measures include organic sales, EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted earnings from continuing operations, adjusted diluted earnings per share from continuing operations, adjusted operating profit from continuing operations, segment adjusted operating profit and adjusted EBITDA, adjusted SG&A, and net debt. The supplemental financial schedules appended at the end of this presentation include reconciliations of these non-GAAP measures to the most comparable GAAP measure. Enerpac Tool Group acknowledges that there are many items that impact a company's reported results, and the adjustments reflected in these non-GAAP measures are not intended to present all items that may have impacted these results. In addition, these non-GAAP measures are not necessarily comparable to similarly titled measures used by other companies.
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Strong Investment Potential
Premier industrial solutions provider serving
a broad and diverse set of customers globally for mission- critical applications
Exceptional channel partner network built over decades,
creates competitive moat and enables truly global coverage
Well-defined organic growth strategy: expansion in targeted vertical markets, digital transformation, customer-driveninnovation, and expansion in Asia Pacific
Successful completion of ASCEND transformation
program has driven above-market growth and structurally improved margins, paving the way for Powering Enerpac
Performance (PEP) to drive continued growth and margin expansion
Strong balance sheet & solid FCF generation enables a
balanced capital allocation approach: investments to drive organic growth, strategic M&A, and opportunistic share repurchases
3
Accelerated Performance With ASCEND
Transformation & Growth Strategy
($ in millions, except per share)
Net Sales & Organic Growth*
$598
$590
Adjusted EBITDA & Margin (%)**
$571
$529
+8%
+2%
$136
$147
organic
+11%
+5%
organic
organic
organic
$75$83
25.0% 22.8%
14.1%
14.5%
FY21
FY22
FY23
FY24
FY21
FY22
FY23
FY24
*Organic revenue growth excludes the impact of foreign exchange rates, acquisitions, and dispositions. **Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures and exclude restructuring and other
charges identified in the accompanying reconciliations to GAAP measures. FY22 Adjusted EBITDA includes $13M charge for increase in MENAC accounts receivable reserve, an approximate 230 bps impact to margin.
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Business Overview
6
Premier Industrial Solutions Provider
OUR
MISSION
WE MAKE
COMPLEX,
OFTEN HAZARDOUS JOBS POSSIBLE
SAFELY AND
EFFICIENTLY
OUR
VALUES
SAFETY TEAMWORK
INTEGRITY AGILITY
OWNERSHIP
STRATEGIC PILLARS
HARD TO DO
TARGET MARKET
LEADERSHIP
SIMPLIFIED AND
STANDARDIZED PROCESSES
AND OPERATIONS
100+
Countries Served
~2000
Global Employees
~1000
Distributors
~$2.4B
Market Cap*
* As of October 31, 2024
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Geographic
Diversity
EMEA
40%
SALES OF
$590M
IN FISCAL 2024
Americas
APAC
13%
47%
GLOBAL
PLANT
OFFICE
OTHER
HEADQUARTERS
Manufacturing/Assembly
Sales Office/General Office
Service Center/Warehouse/Other
GLOBAL COVERAGE
ALLOWS US TO
Better Serve Our
Customers
Producing Near
Our Customers
=
Quicker
Response Time
Understanding
Local Market Needs
and Demand
Some Projects
Require In-country
Production
Low-cost
Manufacturing/
Sourcing Drives
Competitive Margins
Geographic
Diversification of Sales
Reduces Exposure to
Regional Economic
Volatility
8
Large, Fragmented
Vertical Markets Provide
Growth Opportunities
FY24 Estimated End-Market Exposure*
Refining/Petrochemical
~26%
General Industrial
~24%
Industrial MRO, Machining, & Mfg
~14%
Power Generation
~10%
Mining
~10%
Infrastructure
~8%
Other
~8%
*Represents the Company's best estimate of end market revenues by category. Estimated revenue mix for Rail is included in the Infrastructure category and Wind is included in Power Generation. The "Other"
category includes the Company's best estimated exposure to Shipbuilding, Automotive, Aerospace, Off-Hwy Vehicle Repair, Military, Paper & Wood, Marine, Rescue, and other.
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Globally Recognized
Leader in Industrial
Tools and Services
STRONG BRAND
RECOGNITION
PREMIUM INDUSTRIAL TOOLS
HEAVY LIFTING
FY24 Revenue Mix
PRODUCTS
Cylinders/Jacks, Pumps,
Bolting Tools, Presses,
Pullers, Tools, Heavy
Lifting Technology (HLT)
EXTENSIVE GLOBAL DISTRIBUTION
~1,000 Long-standing Distribution Relationships
SERVICE & RENTAL
Bolting, Machining
and Joint Integrity
DIVERSIFIED CUSTOMER BASE
Specialty Dealers
National Distribution
Large OEMs
SERVICE RENTAL TRAINING
20%
80%
Product
Service
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Disclaimer
Enerpac Tool Group Corporation published this content on November 04, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 04, 2024 at 23:34:07.592.