34 slides from Manitowoc Company, Inc. (the)'s investor presentation, Aug 28, 2014
Slide 1: Focused On Value Creation for Our Shareholders
Focused On Value Creation for Our Shareholders A U G U S T 2 0 1 4
Slide 2: Safe Harbor Statement
1 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 uncerta
Slide 3: Agenda
2 Agenda Manitowoc Today Track Record of Execution Complementary Business Portfolio Significant Shareholder Value Through Operational Improvements and Driving Growth Approach to Capital Allocation
Slide 4: Manitowoc Today
@anitowoc TODAY
Slide 5: Who is Manitowoc?
Who is Manitowoc? Global Industrial Manufacturer with Leadership Positions in Attractive End Markets Over $4 billion revenue in FY2013 Two leading business platforms, with complementary cycles • Foodservice (38% of sales) • Cranes (62% of sales) Global footprint with strong presence in key geogra
Slide 6: A Compelling Value Proposition
5 A Compelling Value Proposition Industry Leader with Global Scale, Growth, and Discipline ¹ Please see appendix for reconciliation to GAAP. • Over 100 manufacturing, sales, and customer service facilities worldwide • Strong presence in high-growth emerging markets • Foodservice: 24 industry-leading
Slide 7: Industry-Leading Brands and Products
6 Industry-Leading Brands and Products Leading Positions Across Major Foodservice and Crane Categories High-capacity Lattice-Boom Crawler Cranes Boom Trucks Ice-cube Machines Rapid Cook and Combination Ovens Commercial Fryers Ranges, Grills & Induction Rough-terrain Cranes VPC Crawler Crane Top-slew
Slide 8: Global Footprint with Presence in Key Geographies
7 Global Footprint with Presence in Key Geographies Geographic Footprint Provides Opportunity to Leverage International Growth Foodservice Operations Crane Operations Common Infrastructure and Regional Expertise Across Enterprise
Slide 9: Global Operations
8 Global Operations Building products as close as possible to intended end markets Targeting emerging markets by leveraging developed market strengths Foodservice Over 55% of revenue from replacement of existing equipment Unique value proposition with new technology and menu roll-out support
Slide 10: Continue to Build Upon Our Longstanding and Diverse Customer Base
9 Continue to Build Upon Our Longstanding and Diverse Customer Base Focus on the Customer Edge Extensive manufacturing, sales, and customer service networks worldwide to serve a global customer base Highly innovative, high-quality products meeting customers’ changing needs Strategic and flexib
Slide 11: Long Track Record of Product Innovation Drives Our Demand
10 Long Track Record of Product Innovation Drives Our Demand Touch screen and customization options Automated cleaning system Ethernet / LAN interface Uniquely mounted luffing mechanism and hoist ensures space for operation, even in tight jobsites Variable Position Counterweight (VPC) VP
Slide 12: Track Record of Execution
@anitowoc TRACK RECORD OF EXECUTION
Slide 13: Solid Execution, Strong Underlying Performance
12 Solid Execution, Strong Underlying Performance Financial Performance and Improved Business Mix Driving Shareholder Value Improved Adj. EBITDA1 Margins Increased ROIC Strong Free Cash Flow1 Generation Improved Business Mix 2003 Revenue2 2013 Revenue Cumulative Free Cash Flow Since 2003 ¹ Please se
Slide 14: Significantly Improved Credit Profile
13 Significantly Improved Credit Profile Financial Performance Improvements Delivered While Strengthening Balance Sheet Total Debt / Adjusted EBITDA1 Interest Coverage1 ¹ Please see appendix for reconciliation to GAAP. Note: 2009 represents first full year following Enodis acquisition. Interest cove
Slide 15: Complementary Business Portfolio
C O M P L E M E N T A R Y B U S I N E S S P O R T F O L I O
Slide 16: Significant Momentum From Operational Improvements
15 Significant Momentum From Operational Improvements • Operational efficiencies, further cost initiatives and operating leverage are expected to drive margins • Recovery in key end markets should drive further growth • Successful deleveraging is expected to allow for more capital allocation flexibi
Slide 17: Two Core Businesses Create A Stronger Enterprise
16 Two Core Businesses Create A Stronger Enterprise Significant reduction in earnings volatility Ability to invest over the cycle is key competitive advantage Benefits of global scale across portfolio Operating synergies Common processes Growth model focused on innovation and operational
Slide 18: Business Platform Benefits From Combination
17 Foodservice Significant benefits of scale (would have not been able to acquire Enodis standalone) Purchasing and other operational synergies Common processes and best practices Business Platform Benefits From Combination Complementary Business Cycles, Benefits of Scale, and Reduction in Vol
Slide 19: Diversified End Markets Important for Cranes
18 Diversified End Markets Important for Cranes The Ability to Invest Over the Cycle is Critical for Our Competitiveness Many Crane Companies Are Within Diversified Industrials Investment Made in Cranes While Volatile, There Is Significant Upside Acquired Potain in 2001 • Added tower crane product
Slide 20: Significant Shareholder Value Through Operational Improvements and Driving Growth
S I G N I F I C A N T S H A R E H O L D E R V A L U E T H R O U G H O P E R A T I O N A L I M P R O V E M E N T S A N D D R I V I N G G R O W T H
Slide 21: Delivered Significant Margin Improvement, With More Expected
20 Delivered Significant Margin Improvement, With More Expected Improving Margins Initiatives Construction of multi-purpose Foodservice plant in Monterrey, Mexico Consolidation of beverage facilities to Tijuana, Mexico Consolidation of ovens facilities to Cleveland, Ohio Development of share
Slide 22: Focused on Continued Execution Of Operating Improvements
21 Sourcing/ Procurement Focused on Continued Execution Of Operating Improvements Operating Improvements Expected to Have Quantifiable Benefits Lean Manufacturing Other Efficiency Improvements Actions and Examples Total 2017 Run-Rate Benefits ($mm) Purchasing transformation initiative Improved p
Slide 23: Synergies Across the Business
22 Synergies Across the Business Purchasing Common Resources and Best Practices Support Services (e.g. Treasury, Tax, HR, IT) Corporate and Governance Functions Balance Sheet Capacity Regional Infrastructure Optimizing Long-term shareholder value Multiple Operational Synergies Across Bot
Slide 24: Manitowoc Enterprise is Poised for Growth
23 Manitowoc Enterprise is Poised for Growth • Key end markets are recovering • Improved customer service and satisfaction • Implementing strategic investments aimed at long-term growth Improving Demand • Underlying growth in developing markets where we are well positioned • Leverage existing presen
Slide 25: Driving Growth Through Geographic Expansion
24 Driving Growth Through Geographic Expansion Continue to Leverage Strong Position in Developing Markets to Drive Growth Significant Growth Already Achieved (% of Total Revenue) Actions Taken Globalized operations with more than 100 facilities in 24 countries Targeted products toward specific n
Slide 26: Further Building Aftermarket Business
25 Further Building Aftermarket Business Increase Revenue and Customer Loyalty through Aftermarket Support Delivering a Superior Aftermarket Service Provides a key competitive advantage Reduces volatility across the enterprise via recurring revenue stream Successfully established KitchenCare b
Slide 27: Approach to Capital Allocation
A P P R O A C H T O C A P I T A L A L L O C A T I O N
Slide 28: Increased Capital Allocation Flexibility
27 Cumulative FCF ($mm) ¹ $134 $167 $238 $477 $618 $784 $1,074 $1,271 $1,241 $1,331 $1,548 $1,316 Interest Coverage¹ 1.8 x 2.5x 3.5 x 7.7x 15.6 x 11.7 x 2.2x 2.0x 2.4x 3.0 x 3.7x 4.2x Increased Capital Allocation Flexibility Drive Shareholder Value Through Growth Initiatives and/or Returning of Capi
Slide 29: Capital Allocation Framework
28 Capital Allocation Framework Implementation of Balanced Capital Allocation Plan While Maintaining Balance Sheet Strength Maintain Balance Sheet Strength Organic Investment Acquisitions Share Repurchases Dividend Policy • Target leverage dependent on economic cycle • Expect to maintain or improve
Slide 30: A Compelling Value Proposition
29 A Compelling Value Proposition Industry Leader with Global Scale, Growth, and Discipline ¹ Please see appendix for reconciliation to GAAP. • Over 100 manufacturing, sales, and customer service facilities worldwide • Strong presence in high-growth emerging markets • Foodservice: 24 industry-leadin
Slide 31: Focused On Value Creation for Our Shareholders
Focused On Value Creation for Our Shareholders A U G U S T 2 0 1 4
Slide 32: Appendix
@anitowoc APPENDIX
Slide 33: Adjusted EBITDA and Free Cash Flow Reconciliation to GAAP
32 Adjusted EBITDA and Free Cash Flow Reconciliation to GAAP (US$ in millions) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 LTM Net Income Attributable to Manitowoc $ 4 $ 39 $ 67 $ 167 $ 338 $ 13 $(709) $(73) $(11) $ 102 $ 142 $ 112 (Gain) Loss from Discontinued Operations (11) (13) (5) (7
Slide 34: Quarterly LTM Adjusted EBIT Reconciliation To GAAP
33 Quarterly LTM Adjusted EBIT Reconciliation To GAAP LTM 1Q LTM 2Q LTM 3Q FY LTM 1Q LTM 2Q LTM 3Q FY LTM 1Q LTM 2Q LTM 3Q FY LTM 1Q LTM 2Q LTM 3Q FY LTM 1Q LTM 2Q LTM 3Q FY LTM 1Q LTM 2Q (US$ in millions) 2009 2009 2009 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 2013 2013 2013