Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — Investor Presentation (March 2023)
29 slides from Manitowoc Company, Inc. (the)'s investor presentation, Mar 6, 2023
Slide 1: March 2023 Investor Presentation
March 2023 Aaron Ravenscroft President & CEO Brian Regan EVP & CFO Ion Warner SVP Marketing & Investor Relations
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 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,
Slide 3: Manitowoc Changes the Way our Communities Look
The Manitowoc Company, Inc. 3 Manitowoc Changes the Way our Communities Look
Slide 4: Safety is our #1 priority
Safety is our #1 priority 5S is essential for maintaining a safe workplace Every injury is preventable Safety requires continuous improvement Safety is everyone's responsibility SLAM is to be used by every employee ona daily basis Everyone has the authority and responsibility to STOP unsafe work Our
Slide 5: Our Journey
Our Journey 1902: Manitowoc Dry Dock Company founded 1925: Production of Moore Speedcrane begins 2001: Acquired Potain tower cranes 2002: Acquired Grove mobile cranes 2016: Spun-off Foodservice 1952: Renamed The Manitowoc Company 1995: First “modern” large crawler crane launched 2021: Acquired Aspen
Slide 6: Company Overview
6 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 Market Leading Provider of Lifting Solutions Source: Company filings 1 For the year ended December 31,
Slide 7: The Manitowoc Way: A Culture Built on Serving Our Customers
Employee Engagement Innovation Growth The Manitowoc Way 7 A Culture Built on Serving Our Customers
Slide 8: Strategic Focus on Aftermarket
Strategic Focus on Aftermarket 8 Increase Non-New Machines Sales to $675M by 2026 Parts & Service Rent-to-Own (RPO) Rentals Used sales Crane remanufacturing Training services Digital solutions
Slide 9: Recurring Revenue Streams; Higher Margins
Recurring Revenue Stream Grow recurring revenue streams throughout the cycle Acquisitions accelerate margin growth Higher Margins Typically carry margin rates 2x – 3x greater than new crane sales Getting Closer to Customers More field techs drive higher parts & service sales Acquisitions accelerate
Slide 10: Non-new Machine Sales Dynamics
Non-new Machine Sales Dynamics 10 Category 5-year revenue Trend EBITDA MARGIN Impact1 Commentary Parts & Service Installed base drives funnel for parts & service Field service techs contribute to growth Acquisitions enable selling direct to end users Rent-to-Rent / Rent-to-Purchase Provides options
Slide 11: Aftermarket Growth Strategy
Aftermarket Growth Strategy Manitowoc’s Vision for the Future 11 Grow EU Tower Crane Rental & Aftermarket Business Build out China and Belt & Road Tower Crane Business Re-invigorate All-Terrain Crane Product Offerings Expand Aftermarket Activities in North America THE MANITOWOC WAY Macro-Trends Infr
Slide 12: Grow EU Tower Rental & Aftermarket Business
Grow EU Tower Rental & Aftermarket Business 12 Source: MTW estimates Benefits of Rental Fleet New sales bundles New customer opportunities Recurring rental revenue Less cyclical Used crane growth Service sales expansion Attractive returns $3 Billion Market | ~75% Non-New Machine Sales
Slide 13: The Power of Rental (Illustrative Model)
The Power of Rental (Illustrative Model) 13 1 Three-year investment horizon Investment/Returns Rental Capex: $30M1 Annual Rental Adjusted EBITDA: ~$5-6M Organic Growth Opportunities with Attractive Returns Benefits Strong EBITDA margin accretion Rental expansion Parts & service growth Used sales Ins
Slide 14: Build Out Belt & Road Tower Crane Business
Build Out Belt & Road Tower Crane Business 14 Transitioned our China factory into a regional business Engineering and designing locally for local markets Growing share in the Belt & Road markets Growing Our Presence in Developing Economies
Slide 15: Re-invigorate All-terrain Crane Product Offerings
Re-invigorate All-terrain Crane Product Offerings 15 Increasing our product portfolio with a wider range of models Filling gaps in our All-Terrain product range to grow our global market share Expanding key technology architectures, such as Maxbase and Grove ConnectTM Growing installed base to drive
Slide 16: Expand Aftermarket Activities in N. America
Expand Aftermarket Activities in N. America MGX and Aspen Branch/Service Location Acquired Honnen Territory New Boom Truck Territory Remanufacturing Location Technician Talent Pool Parts Sales Fleet Support Services Remanufacturing 16 $180M Investment In Acquisitions Generating >$30M of Adjusted EBI
Slide 17: Drive Recurring Revenue Streams and Reduce Cyclicality
Drive Recurring Revenue Streams and Reduce Cyclicality Non-new machine sales TTM Revenue ($M)
Slide 18: Megatrends Fuel Crane Renaissance
18 Resurgent China Demand Higher Commodity Prices U.S. Infrastructure & CHIPS Bill Investments European Market Rebound Aging Crane Fleets Need Refresh Megatrends Fuel Crane Renaissance Saudi Arabian Megaprojects MegaTrends
Slide 19: Aging Cranes Needs Refresh
Aging Cranes Needs Refresh 19 Total Revenue ($M) 2010 - 2013 Avg Revenue: ~$2,200 2017 - 2019 Avg Revenue: ~$1,700 2004 - 2008 Avg Revenue: ~$2,400 2020 – 2023F Avg Revenue: ~$1,810 Replacement Demand Expected to Accelerate
Slide 20: Long-Term Goals
Financial Metric Aspirational Target Revenue $2.5B Adj. EBITDA >$275M Key Assumptions for Aspirational Targets: ~$250M revenue from Breakthrough Initiatives (incl. acquisitions) ~$250M revenue from market growth Normalized market growth through the cycle Normalized pricing conditions Continuing marg
Slide 21: Capital Allocation
<3x Target Net Leverage 2.2x Net Leverage1 1 Based on 12/31/2022 Adjusted EBITDA 2 As of 12/31/2022 3 As of 12/31/2022, $30M share repurchase program approved in 2019 to offset impact of share creep. Average repurchase price since inception of $12.47 per share Rental Fleet Growth $30M invested over
Slide 22: The Manitowoc Way: ESG
The Manitowoc Way: ESG 22 AA MSCI ESG RATING ESG is incorporated into our short-term incentive plan Safety – 36-month rolling RIR has improved from 1.87 in June 2019 to 1.53 in December 2022 Environmental – Accuvio environmental accounting software used to track our progress Diversity – executing fe
Slide 23: Appendix
@anitowoc: Appendix
Slide 24: Financial Metrics ($millions)
Financial Metrics ($millions) 24 1 See appendix for reconciliation of GAAP to non-GAAP measures 2 2019 and forward reflects termination of accounts receivable securitization program 3 2019 and prior were restated to remove impact of termination of accounts receivable securitization program
Slide 25: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation 25
Slide 26: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation 26
Slide 27: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation 27
Slide 28: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation 28
Slide 29: Contact
Contact: Ion Warner SVP Marketing & Investor Relations ion.warner@manitowoc.com O: +1 414-760-4805 M: +1 717-414-1813