Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — The Manitowoc Company — Bank of America Leveraged Finance Conference 2023
23 slides from Manitowoc Company, Inc. (the)'s conference presentation, Nov 29, 2023
Slide 1: Bank of America Leveraged Finance Conference
Bank of America Leveraged Finance Conference November 29, 2023 Boca Raton, FL Brian Regan EVP & CFO Ion Warner SVP Marketing & IR
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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
Slide 3: The Manitowoc Company, Inc.
The Manitowoc Company, Inc. MANITOWOC CHANGES THE WAY OUR COMMUNITIES LOOK 3
Slide 4: Company Overview
Company Overview • 2022 Revenue: $2.0B • 2022 Adjusted EBITDA: $143M (7.0% of sales)2 • 2022 Net Leverage Ratio: 2.2x • Global footprint • Strong brand loyalty • Large installed base, and growing aftermarket Source: Company filings 1 For the year ended December 31, 2022 2 See appendix for reconcilia
Slide 5: Strategic Focus on Aftermarket
Strategic Focus on Aftermarket • Parts & Service • Rent-to-Own (RPO) • Rentals • Used sales • Crane remanufacturing • Training services • Digital solutions CONTINUAL PROGRESS IN NON-NEW MACHINE SALES GROWTH 5
Slide 6: Non-new Machine Sales Dynamics
Non-new Machine Sales Dynamics Rent-to-Rent / Crane Remanufacturing Parts & Service Rent-to-Purchase Used Cranes 5-YEAR REVENUE TREND ✔✔ ✔✔✔ ✔✔ ✔ EBITDA MARGIN IMPACT1 1 Denotes relative EBITDA margin impact compared to new crane sales RECURRING REVENUE STREAMS WITH HIGHER MARGINS 6
Slide 7: Manitowoc's Vision for the Future
Manitowoc’s Vision for the Future Aspirational Targets Grow our • $3.0B Revenue Grow EU Expand Leverage All- Belt & Road Tower Crane Aftermarket Terrain Crane Rental & Presence in North NPD to Grow • $1.0B Non-new machine sales (Middle East Aftermarket America Aftermarket focus) • 12% Adjusted EBITD
Slide 8: Grow EU Tower Rental & Aftermarket
Grow EU Tower Rental & Aftermarket Benefits of Rental Fleet Parts Service • New sales bundles New Cranes • New customer opportunities • Recurring rental revenue Used Cranes • Less cyclical Rental • Used crane growth • Service sales expansion • Attractive returns Source: MTW estimates $3 BILLION MARK
Slide 9: The Power of Rental (Illustrative Model)
The Power of Rental (Illustrative Model) Investment/Returns Benefits • Strong EBITDA margin accretion • Rental expansion • Rental Capex: $30M1 • Parts & service growth • Used sales • Annual Rental Adjusted EBITDA: ~$5-6M • Installed base & market share growth • Cash neutral replacement cycle 1 Three
Slide 10: Grow Our Belt & Road Presence (Middle East focus)
Grow Our Belt & Road Presence (Middle East focus) • Saudi Arabian Gigaprojects are key demand driver • Strong base demand in Oil & Gas and Infrastructure end markets • Growing installed base will drive aftermarket revenue growth GROWING OUR PRESENCE IN DEVELOPING ECONOMIES 10
Slide 11: Expand Aftermarket in North America
Expand Aftermarket in North America Rental Fleet Services Full Service Capabilities Parts Sales Remanufacturing Retail Sales $180M INVESTMENT IN ACQUISITIONS GENERATING >$30M OF ADJUSTED EBITDA 11
Slide 12: Leverage All-terrain Crane NPD to Grow Aftermarket
Leverage All-terrain Crane NPD to Grow Aftermarket Filling gaps in our All-Terrain product range to grow market share Expanding technology solutions with real-time telematics with GROVE CONNECTTM Hiring additional service technicians to support growing installed base Bolstering used crane business t
Slide 13: MegaTrends
MegaTrends Resurgent China Higher Commodity Demand Prices U.S. Infrastructure Bill Saudi Arabian & CHIPS Investments Gigaprojects European Market Aging Crane Fleets Rebound & Energy Need Refresh Projects MEGATRENDS FUEL CRANE RENAISSANCE 13
Slide 14: Aging Cranes Need Refresh
Aging Cranes Need Refresh 2004-2008 Avg. Revenue: ~2,400 2010-2013 Avg. Revenue: ~2,200 2020-2023F Avg. Revenue: ~1,800 2017-2019 Avg. Revenue: ~1,700 REPLACEMENT DEMAND EXPECTED TO ACCELERATE 14
Slide 15: Capital Allocation
Capital Allocation Acquisitions Rental Fleet Growth • $180M invested in 2021 $30M invested over the last • Branch expansions in U.S. • Robust acquisition funnel three years <3x Target Net Leverage 1.9x Net Leverage1 $256M Dividend Program Total Liquidity2 Share Repurchase3 None currently approved •
Slide 16: Appendix
Appendix
Slide 17: Manitowoc's Vision for the Future
Manitowoc’s Vision for the Future 17
Slide 18: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Three Months Ended September 30, 2023 2022 As reported Adjustments Adjusted As reported Adjustments Adjusted Gross profit $ 96.8 $ — $ 96.8 $ 74.3 $ 1.0 $ 75.3 Engineering, selling and administrative expenses (77.4) 0.2 (77.2) (65.8) — (65.8) Amortization o
Slide 19: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Three Months Ended Nine Months Ended TTM Ended September 30, September 30, September 30, 2023 2022 2023 2022 2023 Net income (loss) $ 10.4 $ 2.3 $ 47.1 $ 20.5 $ (97.0) Interest expense and amortization of deferred financing fees 8.7 8.3 26.5 24.3 35.2 Provi
Slide 20: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Net cash provided by (used for) operating activities $ 26.3 $ (6.2) $ 23.2 $ (0.5) Capital expenditures (23.6) (15.0) (59.9) (31.8) Free cash flows $ 2.7 $ (21.2) $ (36.7)
Slide 21: The Manitowoc Way: ESG
Updated Mar 23 Updated Aug 23 Updated Oct 23 The Manitowoc Way: ESG 21
Slide 22: Crane Types
Crane Types All-terrain (AT) Boom Truck (BT) Crawler (CR) Rough-terrain (RT) Tower Crane (TC) Truck-mounted (TM) 22
Slide 23: Thank you for your interest
Thank you for your interest Additional information: Ion Warner – SVP Marketing & Investor Relations +1 414-760-4805 ion.warner@manitowoc.com www.manitowoc.com
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