Allison Transmission Holdings, Inc. · NYSE:ALSN
Allison Transmission — Deutsche Bank Global Industrial & Basic Materials Conference 2012
20 slides from Allison Transmission's conference presentation, Jun 12, 2012
Slide 1: Deutsche Bank Global Industrial & Basic Materials Conference
Exhibit 99.1 Deutsche Bank Global Industrial & Basic Materials Conference June 13, 2012 Lawrence Dewey, Chairman, President & Chief Executive Officer 0 David Graziosi, Executive Vice President & Chief Financial Officer
Slide 2: Safe Harbor Statement
Safe Harbor Statement The following information contains, or may be deemed to contain, “forward-looking statements” (as defined in the U.S. Private Securities Litigation Reform Act of 1995). Most forward-looking statements contain words that identify them as forward-looking, such as “may”, “plan”, “
Slide 3: Business Overview
Business Overview © Alison
Slide 4: Allison Transmission at a Glance
Allison Transmission at a Glance World’s largest manufacturer of fully- automatic transmissions for medium- and LTM (1) Net Sales by End Market heavy-duty commercial vehicles Parts, – 62% global market share of fully-automatic Support transmissions Equipment and Other – Virtually no exposure to Clas
Slide 5: Allison Is a Premier Industrial Asset
Allison Is a Premier Industrial Asset Global Market Leader Premier Brand and End User Value Proposition Technology Leadership - The Allison Advantage Diverse End Markets with Long-Standing OEM Customer Relationships Improved Margins and Low Capex Drive Strong Cash Flow Generation Experienced Managem
Slide 6: Global Market Leader
Global Market Leader Global On-Highway Fully-Automatic Share (1) North American Market Share (1) Allison’s Core Addressable Market Expansion Market Other (2) ~38% Substantially All Allison ~62% The “de facto” standard in medium- and heavy-duty applications – Well established as standard in North Ame
Slide 7: End User Value Proposition
End User Value Proposition High Allison Advantage Productivity (acceleration) Maintenance Savings (life cycle costs) Allison Fuel Efficiency (Fully-Automatic) Driver Skillset / Wages Training (time, cost) Relative Customer Shift Quality Value Safety Residual Value Automated Manual Transmission (AMT)
Slide 8: End Market & Vocation Overview
End Market & Vocation Overview Global On-Highway Global Off-Highway North America Hybrid Transit Bus Sample Vocations Select End Users Distribution Emergency Select End Users Select End Users Vehicle British Airport Authority Motorhome Parts, Support Equipment and Rugged Duty Military Other School B
Slide 9: Multiple Organic Growth Opportunities
Multiple Organic Growth Opportunities Benefit from Developed Markets Recovery Increase Penetration of Fully Automatic Transmissions Accelerate Adoption in Emerging Markets Capitalize on Rising Demand for Energy and Commodities Continue New Technology and Product Development Increase Share in Underse
Slide 10: New Product Development
New Product Development Class 8 Metro Hybrid Commercial Vehicle Developing a ten-speed fully-automatic Leading development of first fully-automatic hybrid transmission targeted at Class 8 tractors serving truck transmission for the Class 6-7 market urban markets Awarded $62.8 million U.S. Department
Slide 11: Strategic Priorities
Strategic Priorities Expand global market leadership – Capitalize on continued market recovery – New vocational offerings Emerging markets penetration – Vocational ladder strategy – Increase number of vehicle releases Continued focus on new technologies and product development – Address markets adja
Slide 12: Financial Overview
Financial Overview © Alison
Slide 13: Allison Key Financial Highlights
Allison Key Financial Highlights Strong Financial Profile(2) ($ in millions) $766 $712 $617 $544 $501 32.9% 34.1% 32.0% 26.4% 28.4% 16.4% 17.2% 17.5% 9.4% 8.0% 14.2% 14.1% 15.1% 4.5% 2.8% (1) 2008 2009 2010 2011 LTM Adj. EBITDA Adj. EBITDA Margin Adj. NI Margin Free Cash Flow (% of Net Sales) Strong
Slide 14: Sustainable Margins with Further Enhancement Opportunities
Sustainable Margins with Further Enhancement Opportunities Long-Term Customer Supply Agreements Manufacturing Efficiencies (hours/unit) ~90% 1000/2000 Series 3000 Series 4000 Series 2005 2011 ~90% of 2011 N.A. On-Highway Unit Volume was covered by long- term customer supply agreements Hours Per Unit
Slide 15: Significant Cash Flow Generation
Significant Cash Flow Generation Free Cash Flow Generation(1) Net Debt(2) ($ in millions) ($ in millions) $394 $372 $16 $315 6.9x 7.4x 5.5x $193 $4,204 $142 16.4% 17.2% 17.5% $3,753 4.3x $3,721 3.9x $61 9.4% $3,419 8.0% $3,065 $2,981 $81 $378 (5) 2008 2009 2010 2011 LTM At 2008 2009 2010 2011 LTM (5
Slide 16: Q&A
Q&A 15
Slide 17: Appendix: Non-GAAP Financial Information
Appendix: Non-GAAP Financial Information 16
Slide 18: Non-GAAP Financial Information
Non-GAAP Financial Information We use Adjusted net income, Adjusted EBITDA, Adjusted EBITDA margin, adjusted free cash flow and free cash flow to evaluate our performance relative to that of our peers. In addition, the Senior Secured Credit Facility has certain covenants that incorporate Adjusted EB
Slide 19: Non-GAAP Reconciliations (1 of 2)
Non-GAAP Reconciliations (1 of 2) Adjusted Net Income and Adjusted EBITDA Reconciliation Last twelve Three months ended months ended $ in millions For the year ended December 31, March 31, March 31, 2008 2009 2010 2011 2011 2012 2012 Net (Loss) Income ($328.1) ($323.9) $29.6 $103.0 $36.9 $58.0 $124.
Slide 20: Non-GAAP Reconciliations (2 of 2)
Non-GAAP Reconciliations (2 of 2) Adjusted Free Cash Flow Three months Last twelve ended months ended $ in millions For the year ended December 31, March 31, March 31, 2008 2009 2010 2011 2011 2012 2012 Net Cash Provided by Operating Activities $268.1 $168.7 $388.9 $469.2 $109.9 $139.6 $498.9 (Deduc