Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — The Manitowoc Company — Credit Suisse 4th Annual Industrials Conference 2016
26 slides from Manitowoc Company, Inc. (the)'s conference presentation, Dec 1, 2016
Slide 1: The Manitowoc Company, Inc.
The Manitowoc Company, Inc. CREDIT SUISSE 4TH ANNUAL INDUSTRIALS CONFERENCE MANALAPAN, FL DECEMBER 1, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement Any statements contained in this presentation that are not historical facts are “forward- looking statements.” These statements are based on the current expectations of the management of the company, only speak as of the date on which they are made, and are subject to uncertain
Slide 3: Agenda
Agenda Transformation Execution Future Manitowoc of of Growth Company Plan Opportunities Building Something Real 3
Slide 4: Agenda
Agenda Transformation Execution Future Manitowoc of of Growth Company Plan Opportunities Building Something Real 4
Slide 5: Investment Highlights
Investment Highlights Leading Global Crane Manufacturer with industry-leading innovations New, Operationally-Focused Team Driving Results Executing on strategic priorities to improve margins, earnings, and cash flow Geographically diverse customer and end market base Unique aftermarket support drive
Slide 6: MTW Summary
MTW Summary • Global leader in lifting equipment • Serve wide range of end markets • Broadest product and service offering • Innovation leader • Global channel and reach • Aftermarket solutions • Financing solutions Leading crane manufacturer 6
Slide 7: Building Something Real
Building Something Real Transformation Execution Future Manitowoc of of Growth Company Plan Opportunities 7
Slide 8: Transformation: The Conditions are Right
Transformation: The Conditions are Right Stand-alone Crane Company • Foodservice spin-off complete • Right-sizing for new company structure Re-Capitalized Balance Sheet • Sufficient liquidity • Working capital focus New Management Team • Demonstrated record of turnarounds • Lean acceleration to driv
Slide 9: Transformation: Vision for New Manitowoc
Transformation: Vision for New Manitowoc Customers 1. Margin Expansion Velocity 2. Growth Innovation 3. Innovation Shareholders Employees 4. Velocity 10
Slide 10: Transformation: Strategic Initiatives
Transformation: Strategic Initiatives • Optimize Global Capacity • Increase Manufacturing Agility Margin Expansion • Improve Productivity • Reduce Material Cost • Renew Focus on Quality & Reliability Growth • Strengthen Channel Management • Increase Market Share • Accelerate New Product Development
Slide 11: Building Something Real
Building Something Real Transformation Execution Future Manitowoc of of Growth Company Plan Opportunities 12
Slide 12: Execution: Margin Improvement
Execution: Margin Improvement • Headcount reductions • Plant rationalizations Right-sizing the business to match new company • Increase manufacturing structure, current market flexibility environment, and future expectations • Material cost reduction • Productivity 13
Slide 13: Execution: Growth
Execution: Growth • Improved quality & reliability Improving competitive • Strengthen dealer position to re-gain engagement market share • Sales excellence & training 14
Slide 14: Execution: Innovation
Execution: Innovation • Implement product development process • Leverage advanced design techniques Enhancing user productivity to generate • Invest in World-Class greater ROI for customers manufacturing disciplines • Standardization of components 15
Slide 15: Execution: Velocity
Execution: Velocity • Build a continuous improvement-based culture Better serving all of our • Invest in productivity stakeholders • Reduce Working Capital • Optimize back-office 16
Slide 16: Building Something Real
Building Something Real Transformation Execution Future Manitowoc of of Growth Company Plan Opportunities 17
Slide 17: Future Growth Opportunities
Future Growth Opportunities • Customer Engagement • Innovation • External Growth • Manufacturing Technology • People Development • Utilize Balance Sheet Increasing ROIC for All Stakeholders 18
Slide 18: Additional Materials and Financials
Additional Materials and Financials 19
Slide 19: Manitowoc: Large Installed Base
Manitowoc: Large Installed Base Extensive installed base across diverse geographies provides recurring service and replacement parts revenue opportunities Category Leading Brands Active Installed Base1 Average Fleet Replacement2 Mobile Telescopic Cranes ~55,000 7-9 years Tower Self-Erecting: 6-8 yea
Slide 20: Diversified by Region, End Market and Product
Diversified by Region, End Market and Product Balanced Sales Footprint and Customer Segments We Serve 2015 2015 2015 Overall 2016 YTD Geographic Exposure End Market Exposure1 Customer Mix2 Revenue by Product3 Infrastructure 17% Industrial / Petrochemical Rental Contractor 35% 17% 13% Residential Oth
Slide 21: Financial & Other Key Metrics
Financial & Other Key Metrics Q3 2016 Q3 2015 YoY ∆ Q2 2016 QoQ ∆ Orders $ 309.9 $ 338.2 (8.4)% $ 348.9 (11.2)% Net sales $ 349.8 $ 438.2 (20.2)% $ 457.7 (23.6)% Operating (loss) income $ (133.5) $ (8.2) n/m $ 4.8 n/m Non-GAAP adjusted operating (loss) income $ (31.5) $ (7.7) n/m $ 14.8 n/m Net (los
Slide 22: GAAP Reconciliation Summary
GAAP Reconciliation Summary 23
Slide 23: Historical Revenue and EBITDA
Historical Revenue and EBITDA (US$ in millions) Cranes generates significant revenue and EBITDA during cyclical upturns During industry downturns, predictable replacement demand and differentiated product offerings support demand Restructuring initiatives in progress Revenue EBITDA & Margin $3
Slide 24: Historical Capital Needs & Cash Flow
Historical Capital Needs & Cash Flow (US$ in millions) Moderate capital intensity and working capital requirements allow earnings to largely flow to cash flow Working capital needs decrease when revenue declines, providing a strong cash flow offset during industry downturns Free cash flow¹ gen
Slide 25: EBITDA and Free Cash Flow Reconciliation
EBITDA and Free Cash Flow Reconciliation (US$ in millions) 2010 2011 2012 2013 2014 2015 Earnings (Loss) from Operations 1 $ 94 $ 119 $ 171 $ 219 $ 164 $ 64 Depreciation 55 53 44 47 46 47 EBITDA $ 149 $ 172 $ 214 $ 266 $ 210 $ 110 Capital Expenditures (21) (52) (53) (69) (57) (52) Free Cash Flow $ 1
Slide 26: Questions
Q@anitowoc
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