Enersys · NYSE:ENS
Enersys — Q3 FY2022 Earnings Presentation
16 slides from Enersys's earnings presentation, Feb 10, 2022
Slide 1: 3rd Quarter Earnings Conference Call
3rd Quarter Earnings Conference Call February 10, 2022 February 10, 2022 EnerSys 2022. All Rights Reserved
Slide 2: Forward-Looking Information
David M. Shaffer, Director, President and Chief Executive Officer Michael J. Schmidtlein, Executive Vice President and Chief Financial Officer Andrea J. Funk, VP Finance Americas Forward-Looking Information As a reminder, we will be presenting certain forward-looking statements on this call that are
Slide 3: Q3'22 Record Revenue
Q3’22 Record Revenue Robust demand across all segments Aggressive pricing offset record inflation $844M +12% • Record sales from volume growth & pricing Revenue vs Q3’21 offset ~$30M of sequential cost increases + 7% vs Q2’22 • Orders +30% vs Q3’21; +33% vs pre- COVID Q3’20 • Record backlog $1.2B, +
Slide 4: Energy Systems
Energy Systems Robust demand, improving price recapture, navigating complex supply chain • Order rates +54% vs pre-COVID Q3’20 • Modest margin improvement with aggressive price $385M +$14% offsetting record inflation; sequential improvements to Revenue vs Q3’21 come despite lingering supply chain he
Slide 5: Motive Power
Motive Power Another strong quarter despite sequential cost increases • $39M OE absorbed $15M sequential cost $340M +12% increases, partially offset by price & favorable Revenue vs Q3’21 mix +6% • Higher margin NexSys® maintenance-free vs Q2’22 products continue to grow; ENS is the only provider of
Slide 6: Specialty
Specialty Strong revenue despite labor and supply constraints muting potential $119M +9% • $12M OE; cost and capacity improvements Revenue vs Q3’21 underway +18% • $1.2B/yr TPPL production capacity achieved vs Q2’22 • A&D performed well; exciting project pipeline • ASBL Li-ion batteries embedded in
Slide 7: Infrastructure Law
Infrastructure Law Legislation accelerates US lithium-ion cell manufacturing Energy Systems • Public & private broadband communication network build-outs & upgrades • Critical power & back-up for industrial & utility systems operations • Rural Digital Opportunity Funds for broadband coverage in unde
Slide 8: Outlook
Outlook Near-term: • Strong market opportunities across all segments • Continuing to mitigate macro headwinds and offset cost pressures • Incremental pricing increases, alternate sourcing, redesigns & hiring actions • Expect pace of cost increases to decelerate while price increases catch up • Optim
Slide 9: 3rd Quarter Fiscal 2022 Results
3rd Quarter Fiscal 2022 Results ($ Millions) Q3 F'22 Q2 F'22 Q3 F'21 SALES $844.0 $791.4 $751.1 GROSS PROFIT $184.3 (22%) $178.8 (23%) $189.3 (25%) OP EARNINGS $ $60.4 $61.4 $78.4 OP EARNINGS % 7.2% 7.8% 10.4% EPS $1.01 $1.01 $1.27 Presented on an as adjusted basis. February 10, 2022 EnerSys 2022. A
Slide 10: 3rd Qtr. YoY Sales
F’22 3rd Qtr. YoY Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 Q3 F'21 Q3 $ % Volume Price M&A Fx Energy Systems $385 $337 $48 14% 14% 1% - -1% Motive Power $340 $304 $35 12% 9% 5% - -2% Specialty $119 $109 $10 9% 3% 6% - - Total Net Sales $844 $751 $93 12% 10% 3% - -1% Fav/(Unfa
Slide 11: 3rd Qtr. Sequential Sales
F’22 3rd Qtr. Sequential Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 Q3 F'22 Q2 $ % Energy Systems $385 $370 $15 4% Motive Power $340 $321 $19 6% Specialty $119 $101 $18 18% Total Net Sales $844 $791 $53 7% 5% Organic, 3% Price, 0% Acquisitions, -1% Fx Fav/(Unfav) F'22 Q3 F'22 Q
Slide 12: 3rd Qtr. Operating Earnings by LoB
F’22 3rd Qtr. Operating Earnings by LoB ($ Millions) Fav/(Unfav) Year Over Year F'22 Q3 F'21 Q3 $ % Operating Earnings Energy Systems $9.8 $24.8 ($15.0) -60% 2.6% 7.4% Motive Power 39.0 40.5 ($1.5) -4% 11.5% 13.3% Specialty 11.5 13.1 ($1.6) -12% 9.6% 11.9% Total Operating Earnings $60.3 $78.4 ($18.1
Slide 13: 3rd Qtr. Net Earnings and EPS
F’22 3rd Qtr. Net Earnings and EPS ($ Millions, Except Per Share Amounts) Fav/(Unfav) F'22 Q3 F'21 Q3 $ % Operating Earnings $60.3 $78.4 ($18.1) -23% As % Net Sales 7.1% 10.4% (3.2)Pts. Book Tax Rate 18% 17% Net Earnings $43.0 $55.0 ($12.0) -22% As % Net Sales 5.1% 7.3% (2.2)Pts. EPS diluted $1.01 $
Slide 14: YTD Sales
F’22 YTD Sales By Line of Business & Region ($ Millions) Fav/(Unfav) F'22 F'21 $ % Volume Price M&A Fx Energy Systems $1,126 $1,031 $95 9% 9% -1% - 1% Motive Power $996 $831 $165 20% 17% 2% - 1% Specialty $328 $302 $26 9% 4% 4% - 1% Total Net Sales $2,450 $2,164 $286 13% 11% 1% - 1% Fav/(Unfav) F'22
Slide 15: YTD Net Earnings and EPS
F’22 YTD Net Earnings and EPS ($ Millions, Except Per Share Amounts) Fav/(Unfav) F'22 F'21 $ % Operating Earnings $196.8 $205.8 ($9.0) -4% As % Net Sales 8.0% 9.5% (1.5)Pts. Book Tax Rate 17% 18% Net Earnings $140.9 $137.6 $3.3 2% As % Net Sales 5.8% 6.4% (0.6)Pts. EPS diluted $3.27 $3.19 $0.08 3% A
Slide 16: Financial Position Highlights
Financial Position Highlights ($ Millions) Q3 YTD Fiscal Year 2022 2021 Cash & Cash Equivalents $397.1 $451.8 Net Debt (Gross Debt − Investments) $951.6 $684.3 Net Cash from Operations YTD ($78.0) $358.4 Capital Expenditures YTD $52.4 $70.0 Leverage Ratio (per US Credit Agreement) 2.4X 1.7X Primary