Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Investor Presentation (August 2018)
19 slides from Modine Manufacturing's investor presentation, August 2018
Slide 1: Modine Manufacturing Company Investor Presentation August 2018
Modine Manufacturing Company Investor Presentation August 2018
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements, including information about future financial performance and market conditions, accompanied by phrases such as “believes,” “estimates,” “expects,” “plans,” “anticipates,” “intends,” and other similar “forward-looking” statements, as d
Slide 3: Modine at a Glance
Modine at a Glance A Diversified Industrial Company with a Well Positioned Product Portfolio Modine Manufacturing Company has been FY’18 Sales by Geographic Region leading the way in thermal management since 1916. We design, manufacture and 11% Americas test heat transfer products for a wide EMEA va
Slide 4: End-Markets Profile
End-Markets Profile FY’18 Sales - Vehicular Thermal Solutions Industrial sales make up more than 60% 5% Automotive of the Modine Portfolio 29% 42% Commercial Vehicle 61% Industrial 6% 39% Auto/Truck Off-Highway/Specialty 24% Vehicle 7% Other 25% 8% FY’18 Sales - Commercial & Industrial Solutions 12%
Slide 5: Best-in Class Thermal Management Solutions
Best-in Class Thermal Management Solutions Best-in Class Thermal Management Solutions Vehicular Thermal Commercial & Building Solutions Industrial Solutions HVAC Systems (VTS) (CIS) (BHVAC) $1.3B (59%) $676M (32%) $191M (9%) FY’18 NET SALES* FY’18 NET SALES FY’18 NET SALES ---------------------- ---
Slide 6: Product Overview
Product Overview Segment Product Offerings Powertrain Cooling / Engine Products VTS • Radiators • Charge-air-Coolers (and Liquid cooled) • Oil Coolers (Air and Liquid cooled) • Exhaust Gas Recirculation Coolers (EGRCs) • Battery Cooling & Heating • Cooling Modules • Coils CIS – Heat Exchanger/Microc
Slide 7: Customer Profile
VTS CISCustomer Profile BHVAC Effinity™ Heating Atherion® Ventilation DeltaChill™ FreeCool School Systems 7
Slide 8: Modine Strategy
Modine Strategy Strengthen Diversify & Grow (SDG) Strengthen - Deliver higher operating margins and cash flows through manufacturing optimization and SG&A controls Diversify - Reduce customer concentration and exposure to cyclical end markets by increasing exposure to higher-margin industrial end ma
Slide 9: Strategic Next Steps
Strategic Next Steps SDG will continue to drive our strategic decisions STRENGTHEN DIVERSIFY GROW Completed strategic Diversify through Re-allocate capital to portfolio assessment acquisitions drive growth and profitability Addressing Target higher margin & underperforming cash generating Concentrat
Slide 10: Financial Highlights and Outlook
Financial Highlights and Outlook (In ‘000s) $2,500 Net sales FY’18 Results • Net sales up 40% to $2.1 billion $2,000 • Adjusted operating income up 66% to $1,500 $120.1 million $1,000 • Adjusted EPS up $0.76 to $1.54 FY'16 FY'17 FY'18 FY'19 • Free cash flow of $52.8 million up $150 Adjusted OpInc $7
Slide 11: Highlights
Highlights • Reorganized company into three segments with global operations and scale • Set to deliver another year of revenue and earnings growth and free cash flow in FY’19 • Strengthen, Diversify and Grow will continue to guide strategic decisions • Investigating opportunities for industrial acqu
Slide 12: Appendix
Appendix
Slide 13: Vehicular Thermal Solutions
Vehicular Thermal Solutions • 18 manufacturing facilities around the globe FY 2018 Sales Mix (59%) • Focused significant resources on strategic review of our product portfolio 5% • Diversified revenue mix across major end-markets • Strengthening business by optimizing global 29% 42% manufacturing an
Slide 14: Commercial and Industrial Solutions
Commercial and Industrial Solutions • 16 manufacturing facilities in North America, Europe FY 2018 Sales Mix (32%) and Asia (closed Austria manufacturing facility) • Primary products include Coils, Coolers and Coatings 12% • CIS is a pioneer in bringing microchannel 15% technology to the HVAC&R indu
Slide 15: Building HVAC Systems
Building HVAC Systems • Four manufacturing facilities in North America and United Kingdom FY 2018 Product Sales Mix (9%) • Complementary business that provides diversification to Modine’s vehicular segment 17% • Strong financials due to product differentiation, 5% 41% manufacturing efficiencies and
Slide 16: Non-GAAP Reconciliations
Non-GAAP Reconciliations Segment adjusted operating income and margin (In millions) Years ended March 31, Years ended March 31, Vehicular Thermal Solutions 2018 2017 Building HVAC Systems 2018 2017 Operating income $ 20.3 $ 13.2 Operating income $ 84.2 $ 68.4 Restructuring expenses 0.4 0.7 Restructu
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations Adjusted operating income and margin Years ended March 31, (In millions) 2018 2017 2016 2015 Operating income $ 92.2 $ 42.3 $ 37.1 $ 54.4 Restructuring expenses 16.0 10.9 16.6 4.7 Impairment charges 2.5 - 9.9 7.8 Acquisition-related costs and adjustments 4.3 19.1 0.5 - Strat
Slide 18: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free cash flow Years ended March 31, (In millions) 2018 2017 2016 2015 Net cash provided by operating activities $ 123.8 $ 41.6 $ 72.4 $ 63.5 Capital expenditures (71.0) (64.4) (62.8) (58.3) Free cash flow $ 52.8 $ (22.8) $ 9.6 $ 5.2 Net sales $ 2,103.1 $ 1,503.0 $ 1,352.5 $
Slide 19: Thank You
Thank You
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