Columbus Mckinnon Corporation · NASDAQ:CMCO

Columbus Mckinnon — Sidoti Small Cap Conference March 2025

22 slides from Columbus Mckinnon's conference presentation, Mar 20, 2025

  1. Slide 1: Sidoti Small Cap Conference

    March 20, 2025 Sidoti Small Cap Conference Gregory Rustowicz Kristine Moser Executive Vice President Finance Vice President, Investor Relations & Chief Financial Officer & Treasurer

  2. Slide 2: Safe Harbor Statement

    Safe Harbor Statement This presentation and the accompanying oral discussion contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward- looking statements are generally identified by the use of forward-looking terminology, includin

  3. Slide 3: CMCO is a Global Leader in Intelligent Motion Solutions for Material Handling

    CMCO is a Global Leader in Intelligent Motion Solutions for Material Handling PRODUCT MIX • Leading global lifting and automation company providing professional-grade solutions for solving customers’ critical material handling requirements Linear Motion 9% Automation • Enhanced strategic positioning

  4. Slide 4: Intelligent Motion Solutions

    Intelligent Motion Solutions Four Categories of Solutions to Address Customers’ Unique Motion Control Needs LIFTING (61%) PRECISION CONVEYANCE (17%) AUTOMATION (13%) LINEAR MOTION (9%) ~$8.0B TAM1 ~$5.2B TAM1 ~$4.5B TAM1 ~$2.3B TAM1 • Leading global position in lifting • Develops and manufactures co

  5. Slide 5: Strong Track Record Creating Value Through M&A

    Strong Track Record Creating Value Through M&A Path and Executing on Previously Communicated Synergies Legend: Acquisition Divestiture September 2015 January 2017 April 2021 December 2021 May 2023 2025 Acquisition of STAHL Acquisition of Dorner for Acquisition of Magnetek, CraneSystems from $485M ad

  6. Slide 6: Kito Crosby At-a-Glance

    Kito Crosby At-a-Glance KITO CROSBY BY THE NUMBERS KEY INDUSTRY BRANDS KEY PRODUCTS PRODUCT MIX1 Technology & Specialty Chains & Solutions 14% Fittings Lifting & Securement 4,000 600K+ REVENUE Consumables 54% Channel End-Users Installed Lifting Solutions Partners Trained Shackles 32% DIVERSIFIED GLO

  7. Slide 7: Significant Strategic and Financial Benefits

    Significant Strategic and Financial Benefits 1 Enhances scale and strengthens competitiveness 2 Growth supported by tailwinds from industry megatrends 3 Highly attractive financial profile 4 Value creation with significant synergies 5 Strong cash flow enables de-leveraging and capacity to reinvest K

  8. Slide 8: Combined Financial Profile Expected to Drive Premium Long-Term Public Valuation

    Combined Financial Profile Expected to Drive Premium Long-Term Public Valuation BROADER MARKET ~2,020 Companies Public U.S. Industrial Companies PUBLIC VALUE ~260 Companies Market Cap: $2B – $8B SCALE ~100 Companies 2025E Revenue: $1B – $3B PROFITABILITY ~50 Companies 2025E EBITDA Margin: 20%+ Avera

  9. Slide 9: Significant Cost Synergies Support Value Creation and Present Growth Opportunities

    Significant Cost Synergies Support Value Creation and Present Growth Opportunities OVERVIEW ~$80M ~$10M ~$70M Expected Annual Gross Synergies Expected Annual Dis-Synergies Expected Annual Net Run Rate Synergies Summary Of Key Synergy Areas And Corresponding Strategic Initiatives Procurement Facility

  10. Slide 10: Value Creation with Significant Synergies

    Value Creation with Significant Synergies Strong Track Record Of Successful Integrations And Cost Synergy Realization Expected Net Run Rate Synergies of ~$70M Annually Additional Upside Expected from Revenue Synergies 100%  Increase breadth and depth of product offerings to existing customers  Geo

  11. Slide 11: Strong Cash Flow Enables De-leveraging and Capacity to Reinvest in the Business

    Strong Cash Flow Enables De-leveraging and Capacity to Reinvest in the Business EXPECTED PRO FORMA FREE CASH FLOW PRO FORMA NET LEVERAGE RATIO1,3,4 KEY GROWTH HIGHLIGHTS ($M) Year 1 4.8x Credit Agreement Adjusted EBITDA Growth: 1 Pro Forma Adjusted EBITDA $486  Base business growth (+) Adjusted EBI

  12. Slide 12: Historical Track Record of De-Leveraging Post-Acquisition

    Historical Track Record of De-Leveraging Post-Acquisition Demonstrated History Of Net Leverage Ratio1 Reduction Following Acquisitions DORNER AND GARVEY ACQUISITIONS1,2 MONTRATEC ACQUISITION1,2 Dorner acquisition (closed April 2021) Montratec acquisition 4.5 (closed May 2023) 4 3.7x Pro Forma 3.5 at

  13. Slide 13: Clear Pathway to Closing

    Clear Pathway to Closing Financing Process Regulatory Approval  HSR filing to be completed in March 2025  On February 10, 2025, the Company obtained $3.05B in  Required regulatory approvals include: committed debt financing to fund the acquisition  Clearance under U.S. Hart-Scott-Rodino Act of 1

  14. Slide 14: Highly Compelling Combination for All Stakeholders

    Highly Compelling Combination for All Stakeholders + Holistic Provider Of Intelligent Motion Solutions In Materials Handling $2B+ >30% 23% >100% ~8x Pro Forma Revenue Of Sales from Pro Forma Adjusted Pro Forma Free Cash TTM Adjusted EBITDA Consumables EBITDA Margin1,2 Flow Conversion1,3 Multiple Net

  15. Slide 15: Supplement

    Supplement

  16. Slide 16: Transaction Overview

    Transaction Overview CONSIDERATION  CMCO to acquire 100% of Kito Crosby in an all-cash transaction at an estimated value of $2.7B & VALUATION  Represents ~8x Trailing-Twelve Month Adjusted EBITDA1 inclusive of synergies  Committed financing package of $3.05B to fund the acquisition and refinance

  17. Slide 17: Sources & Uses and Pro Forma Capitalization

    Sources & Uses and Pro Forma Capitalization Sources & Uses Pro Forma Capitalization Sources: ($M) ($M) As of Close1 New $500M revolving credit facility $0 Revolving credit facility $0 New secured debt 2,550 New secured debt 2,550 Capital lease 12 PIPE convertible preferred equity 800 Deferred financ

  18. Slide 18: Columbus McKinnon is Well-Positioned to Navigate Tariffs

    Columbus McKinnon is Well-Positioned to Navigate Tariffs Potentially Impacted Fund Flow Imports / Exports ($M) To $44 To 1  Project marginal impact to business based To 4 on current tariff expectations $50 Total Imports  A 25% tariff on both Mexico and Canada combined with an additional 10% tariff

  19. Slide 19: Non-GAAP Measures

    Non-GAAP Measures The following information provides definitions and reconciliations of the non-GAAP financial measures presented in this presentation to the most directly comparable financial measures calculated and presented in accordance with generally accepted accounting principles (GAAP). The C

  20. Slide 20: Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin

    Non-GAAP Measures: Adjusted EBITDA and Adjusted EBITDA Margin ($ in thousands) Quarter Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Net income $ 9,728 $ 11,809 $ 8,629 $ (15,043) $ 3,960 Add back (deduct): Income tax expense (benefit) 3,911 2,497 3,421 (4,908) 1,929 Interest and debt expense 9,952 9,169

  21. Slide 21: Non-GAAP Measures: Free Cash Flow and Free Cash Flow Conversion

    Non-GAAP Measures: Free Cash Flow (FCF) and Free Cash Flow Conversion ($ in thousands) Fiscal Year TTM 2021 2022 2023 2024 Q3 FY25 Net cash provided by (used for) operating activities $ 98,890 $ 48,881 $ 83,636 $ 67,198 $ 48,607 Capital expenditures (12,300) (13,104) (12,632) (24,813) (23,745) Free

  22. Slide 22: Non-GAAP Measures: Historical Net Debt and Net Leverage Ratio

    Non-GAAP Measures: Historical Net Debt and Net Leverage Ratio ($ in thousands) Trailing Twelve Month Net Debt is defined in the credit agreement Q1 FY22 Q4 FY23 Q1 FY24 Q4 FY24 as total debt plus standby letters of credit, Net income $ 4,812 $ 48,429 $ 49,313 $ 46,625 net of cash and cash equivalent

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