Columbus Mckinnon Corporation · NASDAQ:CMCO
Columbus Mckinnon — Oppenheimer 14th Annual Industrial Growth Conference 2019
15 slides from Columbus Mckinnon's conference presentation, May 7, 2019
Slide 1: Oppenheimer 14th Annual Industrial Growth Conference
May 7, OPPENHEIMER 14TH ANNUAL 2019 INDUSTRIAL GROWTH CONFERENCE Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT These slides, and the accompanying oral discussion, contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future revenue and earnings, involve known
Slide 3: NASDAQ: CMCO company overview
NASDAQ: CMCO Leading global designer, manufacturer and marketer of motion control products, technologies and services for material handling Founded: 1875 Leader in highly engineered lifting solutions and explosion-protected hoists Premium, well respected brands World’s 2nd largest hoist company with
Slide 4: Highly Relevant to Customers
HIGHLY RELEVANT TO CUSTOMERS Professional grade solutions for complex applications © 2019 Columbus McKinnon Corporation 4
Slide 5: Three Distinct Product Categories
THREE DISTINCT PRODUCT CATEGORIES Customer Driven Solutions Linear & Mechanical Actuators Lifting Tables Rail & Road Engineered Actuation Systems Products ~10% Industrial Products ~45% Manual Chain Hoist Crane Electric Chain Hoist ~45% Rigging / Clamps Solutions Industrial Winches
Slide 6: Defined Channels to Market
DEFINED CHANNELS TO MARKET Specialty Distributors Pfaff International Direct ~10% US General Line Distributors ~5% ~29% OEM/Government ~10% Crane ~11% Builders ~12% ~23% International General EPC Line Distributors $873.7 Million 3Q FY19 TTM Revenue Market channels provide access to end users © 2019
Slide 7: Strategy: Evolution of Columbus McKinnon
STRATEGY: EVOLUTION OF COLUMBUS MCKINNON Phase II underway Growth oriented Phase III Industrial Evolve business Technology model Further pivot: • Portfolio optimization Phase II • M&A Simplify and drive profitable growth Simplify through 80/20 process Operational excellence Ramp growth engine: Phase
Slide 8: Blueprint Phase I Accomplishments
BLUEPRINT PHASE I ACCOMPLISHMENTS STAHL value creation Achieved ~$14 million of synergies by Q3 FY19; $0.17 accretive in first full year Leveraged Magnetek technology Launched three variable-speed drive platforms to address the industrial automation trend Strengthened the core Improved product avail
Slide 9: Tracking Blueprint Phase II Progress
TRACKING BLUEPRINT PHASE II PROGRESS Simplify the Business 80/20 process driving results • Expect ~$7 million savings in FY2019; $4.1 million savings year-to-date Tire Shredder business sold in December Crane Equipment & Service, Inc. and Stahlhammer Bommern GmbH sold in February Improve Productivit
Slide 10: Operating System Deployment Continues
OPERATING SYSTEM DEPLOYMENT CONTINUES E-PAS™: Earnings Power Acceleration System 80/20 process: Centerpiece of operating system Eliminates bleeders - Sharpens focus on growth © 2019 Columbus McKinnon Corporation 10
Slide 11: Phase II: Simplify Through 80/20
PHASE II: SIMPLIFY THROUGH 80/20 • Product Line Simplification 80 / 20 • Customer Focus Process • Targeted Selling • Core Business Segmentation • Sharper business focus • Indirect cost reduction Savings • Expected to accelerate • Realize a full year’s impact of actions in FY2020 Roll-out • 50% of CM
Slide 12: Significant Free Cash Flow Generation
SIGNIFICANT FREE CASH FLOW1 GENERATION ($ in millions) FY19E and Beyond, FCF After: ENABLES MEASURABLE • Annual CapEx of approximately $15 million* ANNUAL DEBT PAYMENT • Annual Pension contribution of ~$12 million ~$60 million in FY19 $90 - $80 - $95 $70 - $85 $60 - $75 $65 $55.1 $46.1 $30.3 $21.0 F
Slide 13: Creating Shareholder Value
CREATING SHAREHOLDER VALUE Adjusted EBITDA Margin(1) Return on Invested Capital (ROIC)(2) 14.8% 13.7% 12.4% 12.4% 11.7% 11.7% 10.5% 8.7% 8.7% 6.4% FY15 FY16 FY17 FY18 Q3 FY19 FY15 FY16 FY17 FY18 Q3 FY19 TTM TTM GOAL: Adjusted EBITDA Margin of 19% and Adjusted ROIC in mid-teens (1) Adjusted EBITDA is
Slide 14: Key Takeaways
KEY TAKEAWAYS Pivot from late stage industrial to higher growth, industrial technology company Raising expectations over next three years: >19% EBITDA margins and ROIC in mid-teens Cost savings through simplification and operational excellence Opportunity to capitalize on automation megatrend Drive
Slide 15: Oppenheimer 14th Annual Industrial Growth Conference
May 7, OPPENHEIMER 14TH ANNUAL 2019 INDUSTRIAL GROWTH CONFERENCE Gregory P. Rustowicz Vice President – Finance & Chief Financial Officer
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