2022 ANNUAL REPORT
RAISING THEBAR “WE WORKED TO
DRIVE CULTURAL
CHANGE ACROSS
THE COMPANY
centered on our core values
of safety, teamwork, integrity,
agility, and ownership. With a
new management team and
a new mission, we are laying
the foundation to become
a leading technology and
solutions provider. In short, at
Enerpac Tool Group we are
Raising the Bar.”
- PAUL STERNLIEB, PRESIDENT & CEO
2022 Annual Report | 1
CORPORATE
PROFILE
Enerpac Tool Group Corp. is a premier industrial tools, services, technology, and solutions provider
serving a broad and diverse set of customers in more than 100 countries. Enerpac Tool Group’s
businesses are global leaders in high-pressure hydraulic tools, controlled force products, and
solutions for precise positioning of heavy loads that help customers safely and reliably tackle some
of the most challenging jobs around the world.
$571M
FY22
Revenue
$83M
FY22
Adj. EBITDA*
11.0%
FY22 Core
Sales Growth
~1.4B
Market Cap**
~2200
Global
Employees
110+
Years of
History
~1000
Distributors
100+
Countries
Served
GLOBAL LEADER IN INDUSTRIAL TOOLS & SERVICES
PRODUCTS
Cylinders/jacks, pumps, bolting
tools, presses, pullers, tools,
Heavy Lifting Technology (HLT)
DIVERSIFIED
CUSTOMER BASE
Specialty dealers
National distribution
Large OEMs
SERVICE
AND RENTAL
Bolting, machining, joint
integrity, leak sealing and
calibration
EXTENSIVE GLOBAL
DISTRIBUTION
~1,000 long-standing
distribution relationships
FY22 REVENUE MIX
~20% Service
~80% Product
*Includes $13.2M charge for increase in MENAC accounts receivable reserve
**As of November 15, 2022
Enerpac Tool Group
2 | 2022 Annual Report
STRONG FINANCIAL POSITION
We delivered strong financial results in FY22, with a steady rebound from the COVID-19 setback,
strong margin improvement, and robust free cash flow.
NET SALES ($M)
GROSS PROFIT
MARGIN
ADJ. OPERATING
PROFIT MARGIN
$655
$571
$529
$493
46.5%
46.0%
12.0%
11.5%
10.4%
44.7%
44.0%
6.0%
FY19 FY20 FY21 FY22
FY19 FY20 FY21 FY22
FY19 FY20 FY21 FY22
ADJ. EBITDA ($M)
AND MARGIN
FREE CASH FLOW ($M)
REVENUE BY REGION
14.7%
14.5%
14.1%
$96
10.6%
$83
$27
$75
$52
$69
$44
$(13)
4%
4%
5%
9%
14%
40%
FY19 FY20 FY21 FY22
FY19 FY20 FY21 FY22
24%
United States
Australia
Europe
S. America
Middle East
Mexico/Canada
Asia
Enerpac Tool Group
With a new management team, new mission, new plan, and new goals, Enerpac Tool Group is taking
action to ensure an exciting future for our customers, shareholders, and employees.
RAISING THE BAR
2022 Annual Report | 3
NEW TEAM
NEW MISSION
NEW PLAN
NEW GOALS
Premier industrial solutions provider serving a broad and diverse set of
customers globally
Defined organic growth strategy focused on maximizing shareholder value
and capitalizing on global macro trends
Transformation plan to elevate performance, create resiliency, and manage
through cycles – already yielding results
Strong balance sheet with a disciplined capital allocation plan
New leadership team positioned to achieve long-term targets
OUR MISSION
OUR VALUES
STRATEGIC PILLARS
WE MAKE
COMPLEX,
OFTEN HAZARDOUS JOBS
POSSIBLE SAFELY AND
EFFICIENTLY
SAFETY
INTEGRITY
OWNERSHIP
TEAMWORK
AGILITY
HARD TO DO
TARGET MARKET
LEADERSHIP
SIMPLIFIED AND
STANDARDIZED
PROCESSES AND
OPERATIONS
FY22 ACCOMPLISHMENTS
Integrated new
management team
Flattened organizational
structure leading to more
visibility of global operations
Added new talent at
multiple levels in the
organization
Defined our new mission,
strategy, and refreshed
financial targets
Holistic review of
business resulted in
launch of ASCEND
transformation plan
Managed through COVID-19, supply
chain, logistics, Ukraine crisis, FX,
and inflationary challenges
Initiated a new share
repurchase program, including
$75M repurchased in FY22
Enerpac Tool Group
4 | 2022 Annual Report
ASCEND TRANSFORMATION
PROGRAM
After completing a holistic, deep-dive review of our business, we launched our ASCEND
transformation program in FY22, focused on driving substantive performance improvement
across the company.
ACCELERATE
ORGANIC GROWTH
GO-TO-MARKET
STRATEGIES
IMPROVE
OPERATIONAL
EXCELLENCE
AND PRODUCTION
EFFICIENCY
DRIVE GREATER
EFFICIENCY &
PRODUCTIVITY
IN SG&A
POWERFUL IMPACT ON OUR EBITDA PERFORMANCE
On Track to Deliver:
~$40-50M
Adjusted EBITDA
impact by FY25
~$12-18M
Impact in FY23
~$15-25M
Additional impact
in FY24
EBITDA
Contribution
~50-60%
Cost
Initiatives*
~40-50%
Sales
Growth**
Enerpac Tool Group
*Split roughly equally between COGS and SG&A
**With a meaningful portion linked to strategic pricing actions
NEW STRATEGY FOCUSED ON RESULTS
With FY22 financial performance demonstrating strong results across the board, Enerpac Tool Group
is well-positioned for growth and value creation.
2022 Annual Report | 5
New team brings a
FRESH PERSPECTIVE
with a new level of rigor and
accountability
COMMITTED TO OUR MISSION
and stated values
BROADENING OUR
APERTURE beyond just a
pure-play industrial
tools and services provider
ASCEND transformation program
is laying the groundwork for
future PROFITABLE GROWTH
that will deliver our new
financial targets
Investing in our
FOCUSED GROWTH
STRATEGY that was
developed based on a bottom
up, data-driven analysis
A DURABLE BUSINESS MODEL FOR FUTURE GROWTH
We are confident in our business model, strategy, and enthusiastic about our new goals and
financial framework.
FY26 TARGETS
>25%
Adj. EBITDA margin
6-7% Organic
Revenue CAGR*
>100% FCF
conversion
Resilient, cash-generative
business model
Continued focus on
margin improvement
Balanced capital
allocation strategy
Proven ability to maintain
balance sheet strength
*Based on FY22 FX-adjusted revenue of $550M
Enerpac Tool Group
6 | 2022 Annual Report
ENERPAC TOOL GROUP OFFERS
STRONG INVESTMENT POTENTIAL
Already delivering exceptionally high gross margins, we believe there’s a pathway to continue to grow,
improve our gross and EBITDA margins, and provide even greater returns.
01
02
03
04
05
LEADING
SOLUTIONS
PROVIDER
HIGH GROSS
MARGIN
PROFILE
with a pathway to
expanded EBITDA
margin growth
with a broad
portfolio of
products and
services and
deep customer
relationships
ENHANCED
ORGANIC
GROWTH
STRATEGY
targeting market
leadership in
key verticals and
wider geographic
expansion
supported
by ASCEND
transformation
plan
STRONG
BALANCE
SHEET
UPDATED
FINANCIAL
GOALS
that reflect
management’s
belief in a winning
strategy
to support both
organic and
inorganic growth
while maintaining
a balanced
approach to
capital allocation
Enerpac Tool Group
CEO LETTER
2022 Annual Report | 7
CEO LETTER
Paul Sternlieb
President and Chief Executive Officer
Dear Fellow Shareholders:
Enerpac Tool Group is a premier industrial
solutions provider, serving a broad and
diverse set of customers globally. In FY22, we
established a new mission: we make complex
and often hazardous jobs possible, safely and
efficiently, for our customers. In addition, we
defined our new strategic pillars, which are
the lenses through which we make any key
decisions or investments in the company. The
first strategic pillar is that we do things that
are hard to do. Our technology, our products,
and our services are highly differentiated and
not easily replicated. Second, we’re driving for
target market leadership in the key end market verticals in which we’re focused. And third, we are
focused on simplified and standardized processes in everything we do.
FY22 marked a new beginning for Enerpac Tool Group. We assembled and built a strong new
management team, developed and launched our ASCEND transformation program and our new
growth strategy, and moved with speed and determination to begin implementation across the
business. We worked to drive cultural change across the company, centered on our core values
of safety, teamwork, integrity, agility, and ownership. With a new management team and a new
mission, we are laying the foundation to become a leading technology and solutions provider. In
short, at Enerpac Tool Group we are Raising the Bar.
STRONG FISCAL YEAR 2022 FINANCIAL RESULTS
While FY22 presented its challenges, including COVID-19, continued supply chain and logistics
disruptions, the Ukraine crisis, and additional inflationary and foreign exchange headwinds, our
team worked hard to manage through these issues. Like many companies, we were affected
greatly by COVID-19 in FY20 and FY21; however, I’m pleased to say we were able to deliver
a strong rebound in FY22. The improvement came in driving both top-line growth and margin
improvement, including operating and adjusted EBITDA margins.
Our FY22 financial results demonstrated strong performance
across the board. We achieved core sales growth of 11%,
driven by pricing and product volume growth. We also improved
Adjusted EBITDA margins to 14.5% (with a record high 20.1%
11%
FY22 Core
Sales Growth
14.5%
FY22 Adj.
EBITDA Margin
Enerpac Tool Group
8 | 2022 Annual Report
CEO LETTER
in the fourth quarter*). Diluted earnings per share (EPS) from continuing operations was $0.33.
Adjusted diluted EPS from continuing operations reached $0.81. So, as we exited FY22, we
established a solid foundation for further growth and margin expansion.
HEALTHY BALANCE SHEET AND DISCIPLINED
CAPITAL ALLOCATION
Our strong financial results enabled us to deliver solid
free cash-flow generation of $44 million in FY22. We also
finished the year with a low net-debt leverage ratio of 0.9
times and strong liquidity. As we continue to focus on our
balanced capital allocation framework and disciplined
deployment of capital, we undertook reinvestments in
growth initiatives and efficiency improvements, many
identified through our ASCEND program. We also allocated
capital to shareholder returns through dividends and share
buybacks, including a new share repurchase program
authorized by our Board in FY22. We completed $75 million
in share repurchases within the fiscal year, representing
approximately 3.8 million shares out of the 10 million shares
authorized.
CAPITAL DEPLOYMENT PRIORITIES
Organic Growth
Investments
Maintain Strong
Balance Sheet
Return Capital
to Shareholders
Disciplined M&A
Process
A YEAR OF CHANGE
FY22 was a year of significant change for Enerpac Tool Group. Over the
course of the year, we completed several key accomplishments. First,
we flattened the organization structure to create more visibility of global
operations, and we added new talent aligned with our strategic needs
at multiple levels in the organization. We also established a new and
accomplished management team comprised of experienced executives
with deep Enerpac and industry experience, as well as those new to the
business who bring fresh outside perspectives, skills, and capabilities.
This team is intently focused on maximizing shareholder value, and we
have built a new plan and strategy for our company. We also completed a
holistic deep-dive review of the business and wasted no time in launching
ASCEND, our transformation program. In short, we did exactly what we said
we would do.
NEW
TEAM
NEW
MISSION
NEW
PLAN
NEW
GOALS
ASCEND TRANSFORMATION PROGRAM
Our ASCEND transformation program is focused on driving substantive performance improvement
across the company. The program is designed around three core elements: 1) accelerating
organic growth, with key, go-to-market strategies that we are executing on now or in the near-term,
2) continuing to improve our operational excellence and our production efficiency, and 3) driving
greater efficiency and productivity in our back office and SG&A, which still presents a significant
opportunity for Enerpac.
Enerpac Tool Group
*Since the 2019 company EC&S segment divestiture
CEO LETTER
2022 Annual Report | 9
We made good progress in FY22, but we still have many more
opportunities ahead of us. We have designed ASCEND around an
incredibly rigorous process that we are utilizing to give order to literally
hundreds of initiatives, built into our funnel across all functions and all
regions of our company. And we continue to refresh that funnel and add
new ideas as we solicit and receive suggestions from many employees
across the company. We have employed a full-time program management
office approach to coordinate the program globally. Our senior leadership
team actively owns these initiatives, driving the results and making them
sustainable.
As we implement ASCEND, we are incorporating key principles of 80/20 to help us simplify our
business. We are applying this to products, customers, channels, and our supply chain. An 80/20
framework is relatively new for Enerpac Tool Group, but our company is very well suited to benefit
from it due to the complexity of our product line-ups, our channel, and our supply chain. We view
this as a great opportunity for us to simplify the business, streamline what we do and how we do
it, and make it easier for us to serve our customers and for our customers to do business with us.
I strongly believe ASCEND and our 80/20 approach will be a continuing source of competitive
advantage for our company.
LOOKING AHEAD
As we look into FY23 and beyond, we are excited about the future for our company. Enerpac is
poised to benefit from several favorable macro trends including aging infrastructure and the need
for new and replacement projects across the globe, the increasing focus on renewable energy
and sustainability, and the continued shift to digital. With the significant aging infrastructure across
the globe, this presents a clear need for significant investment, and governments in particular
are committing to support this in meaningful ways. Enerpac is already actively present in these
markets, serving customers and well positioned to help them get complex and difficult jobs done
safely and efficiently. And in the renewable energy space we see an increasing focus on ESG,
increasing demands for energy around the world, and a drive towards clean energy. Again,
Enerpac is well positioned to provide customers solutions in these areas, and we are growing our
presence to support this—particularly in the wind sector.
Finally, the increasing shift to digital supports our growth
strategy not only around product connectivity and Internet-of-
Things but also around more automation. This will ultimately
help our customers get the job done more quickly and more
safely.
4-PILLAR GROWTH STRATEGY
To capitalize on these macro trends, we have built an
updated growth strategy that is centered around four key
themes. First, we are focused on driving expansion in
targeted vertical markets. These include infrastructure, wind,
rail, and industrial MRO (maintenance, repair, and overhaul).
Second, we are investing in our digital transformation, with
a focus on digital connectivity for our products as well as
investments in digital marketing for demand generation.
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Enerpac Tool Group
10 | 2022 Annual Report
CEO LETTER
Third, we have redefined our customer-driven innovation program, focused on fewer, bigger, and
more impactful new products, along with shortening our development cycle to improve our time-
to-market. Finally, we are driving to expand our business in Asia Pacific through targeted vertical
market growth, improved commercial effectiveness, continued business simplification, and driving
our second brand strategy in the region.
Alongside our organic growth strategy, we have built a robust M&A program and pipeline. Core
to this is a disciplined M&A framework and a consistent set of financial criteria to evaluate
opportunities. We are focused on acquisitions that will help us advance our mission including
expansion in our key vertical markets. Most importantly, we see M&A as a key vehicle to help us
accelerate our journey to becoming an overall solutions provider to our customers in our target
vertical markets.
We have established our new long-term financial framework, with a robust 6 to 7% organic
revenue CAGR over the next four years, achieving greater than 25% adjusted EBITDA in FY26
(including achieving 25% adjusted EBITDA in FY25), and delivering solid cash generation and
free-cash flow conversion greater than 100% toward the tail end of our four-year outlook, as we
continue to invest in ASCEND in the next two to three years.
We are well positioned to manage through uncertain times, given the diversity of our end markets
coupled with our strong balance sheet and healthy cash generation. In addition, with our ASCEND
transformation program well underway, we have a portfolio of self-help initiatives at the ready. With
the success we enjoyed in FY22 and the progress we made on ASCEND, we remain confident
that we will deliver strong growth and financial results in FY23 and beyond.
Our commitment to strong ESG principles underpins all our operations. We focus on minimizing
waste wherever possible, and we incorporate sustainability into both our operations and how we
design and build our products. This includes work to reduce our greenhouse gas (GHG) emissions
through deliberate changes to our processes and equipment. Moreover, we remain committed to
doing right by our stakeholders, and we have incorporated a keen focus on Diversity, Equity, and
Inclusion (DE&I) in all key aspects of our business. I’m proud of the work we are doing on building
our connections to the communities in which we work and live. Through our Enerpac Lifts Up
program, we seek to give back through a combination of employee service hours and monetary
contributions to local non-profit organizations.
RAISING THE BAR
So, in summary: we have a new team, a new mission, a new plan, and new goals. We have built
and are implementing a focused organic growth strategy that capitalizes on global macro trends
to maximize shareholder value. We are broadening our aperture, looking beyond the traditional
tool lens and are focused on becoming a better solution provider
to our customers. Our ASCEND transformation program—which
is already yielding results—is designed to help us elevate
performance, create resiliency, and manage through cycles. And
we have maintained a strong balance sheet and continue to
employ a disciplined capital allocation plan.
Enerpac Tool Group
CEO LETTER
2022 Annual Report | 11
Enerpac Tool Group is a truly wonderful company with exceptionally strong brands, enviable
market positions, strong products and technology, an extensive channel network, a diversified
customer base, global breadth and depth of coverage, and a team of highly skilled and committed
people. Our company has a very bright future and – with our new team, new mission, new plan,
and new goals – we are Raising the Bar.
* * *
I would like to close by expressing my thanks to our Board of Directors and you, our Shareholders,
for your continued support and the confidence you have shown in our new direction as we
transform Enerpac Tool Group. Most importantly, I would like to extend my deepest gratitude to
all our employees around the world for their dedication and commitment to our company and to
serving our customers every day.
Sincerely,
Paul Sternlieb
President and Chief Executive Officer
Enerpac Tool Group Corp.
CORPORATE INFORMATION
Company leadership and contact information
INDEPENDENT DIRECTORS
Alfredo Altavilla
Former Executive Chairman of Italia Transporto Aereo, S.p.A.
CORPORATE OFFICE
N86 W12500 Westbrook Crossing
Menomonee Falls, Wisconsin 53051
EXCHANGE
New York Stock Exchange
Ticker Symbol: EPAC
TRANSFER AGENT
EQ Shareowner Services
PO Box 64874
St. Paul, MN 55164
800.468.9716
INDEPENDENT ACCOUNTANT
Ernst & Young
833 East Michigan St.
Milwaukee, WI 53202
INVESTOR RELATIONS
Financial analysts & investors
should direct inquiries to:
Bobbi Belstner
Senior Director of Investor Relations & Strategy
investor.relations@enerpac.com
Judy L. Altmaier
Former President, Exmark Manufacturing Co.
J. Palmer Clarkson
Former President and CEO, Bridgestone HosePower, LLC
Danny L. Cunningham
Former Chief Risk Officer and Retired Partner of Deloitte &
Touche, LLP
E. James Ferland
Former Chairman and CEO of Babcock & Wilcox Enterprises, Inc.
Richard D. Holder
President and CEO of HZ0, Inc.
Lynn C. Minella
Former EVP and CHRO of Johnson Controls International plc
Sidney S. Simmons, II
Founder and Principal at Simmons Law
EXECUTIVE OFFICERS
Paul E. Sternlieb
President and Chief Executive Officer
Barbara G. Bolens
Executive Vice President, Chief Strategy Officer
Anthony P. Colucci
Executive Vice President, Chief Financial Officer
James P. Denis
Executive Vice President, General Counsel, Corporate
Secretary & Chief Compliance Counsel
Markus Limberger
Executive Vice President, Operations
Benjamin J. Topercer
Executive Vice President, Chief Human Resource Officer
Scott M. Vuchetich
Executive Vice President, Marketing and President, Americas
This Annual Report contains certain statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks
and uncertainties. The terms “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, factors that may cause actual results or events
to differ materially from those contemplated by such forward-looking statements include, without limitation, the economic impact of the COVID-19 pandemic and other general economic
uncertainty, market conditions in the industrial, oil & gas, energy, power generation, infrastructure, commercial construction, truck and automotive industries, the impact of geopolitical
activity, including the invasion of Ukraine by Russia and international sanctions imposed in response thereto, 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 restructur-
ings, the ability of the Company to achieve its plans or objectives related to the ASCEND program, including any assumptions underlying its calculation of expected incremental EBITDA
or program investment, operating margin risk due to competitive pricing and operating efficiencies, supply chain risk, material, labor, or overhead cost increases, tax law changes, foreign
currency risk, interest rate risk, commodity risk, tariffs, litigation matters, impairment of goodwill or other intangible assets, the Company’s ability to access capital markets and other
factors 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 under “Item 1A. Risk
Factors” of the Form 10-K for the fiscal year ended August 31, 2022 included in this Annual Report. We disclaim any obligation to publicly update or revise any forward-looking statements
as a result of new information, future events or any other reason.
Enerpac Tool Group
N86 W12500 Westbrook Crossing
Menomonee Falls, WI 53051
+1.262.293.1500
www.enerpactoolgroup.com