Columbus Mckinnon Corporation · NASDAQ:CMCO

Columbus Mckinnon — 2025 J.P. Morgan Industrials Conference

24 slides from Columbus Mckinnon's conference presentation, Mar 11, 2025

  1. Slide 1: 2025 J.P. Morgan Industrials Conference

    March 11, 2025 2025 J.P. Morgan Industrials Conference David Wilson Gregory Rustowicz Kristine Moser President & Executive Vice President Finance Vice President, Investor Relations Chief Executive Officer & 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: Enhances Scale and Strengthens Competitiveness Across Products and Markets

    Enhances Scale and Strengthens Competitiveness Across Products and Markets Increased Verticals And Geographic Diversity Tethered To Markets With Strong Tailwinds PRO FORMA PRO FORMA PRO FORMA VERTICAL END USES1: GEOGRAPHIES1: PRODUCT PLATFORMS1: Precision Other 2 Aerospace & 9% LATAM Conveyance Gove

  19. Slide 19: Growth Supported with Tailwinds from Industry Megatrends

    Growth Supported with Tailwinds from Industry Megatrends Growth Supported By Exposure To Secular Mega Trends Across The Full Portfolio Nearshoring & Supply Chain Resilience Lifting Automation • Broad increased global • Key enabler of productivity Labor Shortages demand for lifting solutions and safe

  20. Slide 20: 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

  21. Slide 21: 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

  22. Slide 22: 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

  23. Slide 23: 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

  24. Slide 24: 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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