Aebi Schmidt Holding Ag · NASDAQ:AEBI
Aebi Schmidt — Merger or Acquisition (January 2025)
50 slides from Aebi Schmidt's merger presentation, Jan 13, 2025
Slide 1: World-Class Specialty Vehicles Leader Well-Positioned to Accelerate Growth
World-Class Specialty Vehicles Leader Well-Positioned to Accelerate Growth and Drive Exceptional Value Merger of Shyft Group and Aebi Schmidt Group January 13, 2025
Slide 2: Forward-Looking Statement
Forward-Looking Statement Certain statements in this Current Report on Form 8-K are forward-looking statements. In some cases, Shyft has identified forward-looking statements by such words or phrases as “will likely result,” “is confident that,” “expect,” “expects,” “should,” “could,” “may,” “will c
Slide 3: No offer or solicitation
No offer or solicitation This communication is for informational purposes only and is not intended to and shall not constitute an offer to buy or sell, or the solicitation of an offer to buy or sell, any securities, or a solicitation of any vote or approval, nor shall there be any offer, solicitatio
Slide 4: Presenters & Agenda
Presenters & Agenda 1 Transaction Overview 2 Aebi Schmidt Overview James Sharman Barend Fruithof John Dunn Chairman of the Board Group CEO President and CEO 3 Value Creation – Integration & Synergies 4 Financial Overview 5 Conclusion 6 Q&A Steffen Schewerda Jacob Farmer Randy Wilson CEO, North Ameri
Slide 5: Transaction Overview
+ 1 Transaction Overview 2 Aebi Schmidt Overview 3 Value Creation – Integration & Synergies 4 Financial Overview 5 Conclusion Appendix: Additional Support Information
Slide 6: Combination Creates Leading Specialty Vehicles Company Positioned to Drive Outsized Growth
Combination Creates Leading Specialty Vehicles Company Positioned to Drive Outsized Growth MergeCo Scaled-up global specialty vehicles leader focused on attractive North 2025E Pro Forma (1)(2)(3) American market, with a strong European presence ~$2.2B ~$214M Expanded portfolio, shared innovation, an
Slide 7: Key Transaction Highlights
Key Transaction Highlights Transaction Structure Value Creation • All-stock merger, tax-free to Shyft shareholders • Growth, margin and FCF(1) accretive pre- and post-EV adjustments • EPS accretive in year 1 • Pro Forma ownership: 48% Shyft / 52% Aebi Schmidt shareholders • ROIC > WACC in year 3 • $
Slide 8: Shyft Transaction Negotiation and Market Check Summary
Shyft Transaction Negotiation and Market Check Summary Board Negotiated to Maximize Shyft Shareholders Shyft Board of Directors Market Check Pro Forma Ownership Aebi Schmidt non-binding proposal dates and proposed pro forma On November 1, 2024, Deutsche Bank contacted six (6) strategic parties perce
Slide 9: Combination Accelerates Shyft Strategy to Create Sustainable Value
Combination Accelerates Shyft Strategy to Create Sustainable Value for Shyft Shareholders Shyft Strategic Focus Areas + Advances position in high-growth commercial work truck and infrastructure Attractive End-Markets end-markets while diversifying business towards other attractive markets Combines h
Slide 10: Provides Immediate, Near-Term Significant Increased Scale and Bolstered Profitability
Provides Immediate, Near-Term Significant Increased Scale and Bolstered Profitability… 2025E Pro Forma Revenue ($M) 2025E Pro Forma Adjusted EBITDA ($M)(1) Adjusted EBITDA margin $1,166 ~$50 ~$2’185 ~7% ~10% ~10% ~$214 $114 $25-$30 $969 $72 Annual Annual Run-Rate Run-Rate Synergies Pro Forma Combine
Slide 11: As Well as Significant Increase in Long-Term Growth and Profitability
… As well as Significant Increase in Long-Term Growth and Profitability… Illustrative Pro Forma Adj. EBITDA ($M)(1)(2) % margin 2022A 2023A 2024E 2025E 2026E 2027E 2028E Pro Forma Combined 8% 9% 9% 10% 10% 11% 12% Aebi Schmidt 7% 9% 10% 10% 10% 10% 11% Shyft(2) 9% 8% 9% 7% 8% 10% 11% Assumes Transac
Slide 12: Providing Step-Function Increase in Sustainable Long-Term Growth and Financial Profile
…Providing “Step-Function” Increase in Sustainable Long-Term Growth and Financial Profile without Risking Shyft Core Enterprise… Increased Scale… …with Higher Growth Through the Cycle… 2022A Revenue ($M) 2028E Revenue ($M) 2022A – 2028E Revenue CAGR % +$1.5B 6.6% +130 bps $2’679 +$1.5B $2’879 +$931M
Slide 13: Delivering Immediate Step-Function Increase in Sustainable Value Creation
…Delivering Immediate “Step-Function” Increase in TEV / CY2025E EBITDA Federal Signal: 16.0x Sustainable Value Creation for Shyft Shareholders REV Group: 9.8x Douglas Dynamics: 8.9x Public Peer Median(1): 8.9x Illustrative Shyft Pro Forma Implied Equity Value Per Share ($) % Increase vs. 12/13/24 ~3
Slide 14: Combination Creates Top Specialty Vehicles Leader
Combination Creates Top 3 Specialty Vehicles Leader Specialty Vehicles Key Market Participants 2023 Revenue ($M) $2,638 $2,565 $1,853 $1,723 $1,690 $1,244 $1,117 $981 $872 $568 (1) (2) MergeCo (2) Source: Company information, FactSet; Aebi Schmidt financials presented on a Swiss GAAP FER basis; Fina
Slide 15: Enlarged Platform with Attractive, Diversified End Market Exposure and Global Reach
Enlarged Platform with Attractive, Diversified End Market Exposure and Global Reach Agriculture 2023 Revenue ($M) Motorhome Equipment Chassis 4% Commercial Agriculture Equipment 6% Bodies, Upfit, Aftermarket Parts & Airport 8% & Trailers Accessories 6% Fleet Vehicles Airport 27% 9% Roadway Motorhome
Slide 16: Best-in-Class Board Leadership and Governance
Best-in-Class Board Leadership and Governance Separate Chairman and CEO with majority of Directors independent Composition of Combined Board of Directors Board Committees Committees fully independent consistent with SEC and Nasdaq requirements ▪ Paul Mascarenas (Chair, Independent) Governance and Ja
Slide 17: Aebi Schmidt Overview
+ 1 Transaction Overview 2 Aebi Schmidt Overview 3 Value Creation – Integration & Synergies 4 Financial Overview 5 Conclusion Appendix: Additional Support Information
Slide 18: Aebi Schmidt: Leading Specialty Vehicles Manufacturer with Global Reach
Aebi Schmidt: Leading Specialty Vehicles Manufacturer with Global Reach Global leader in intelligent and innovative solutions for clean and safe infrastructure with strong presence in 1 North America and Europe & ROW Broad offering with leading brands in Snow & Ice Clearing, Airport Runway Clearing,
Slide 19: Serving Attractive End Markets with Comprehensive Offering and Leading Brands
Serving Attractive End Markets with Comprehensive Offering and Leading Brands Street Sweeping & Commercial Airport Snow & Ice Clearing Marking, Environmental Agriculture Trucks & Trailers Snow & Ice Clearing Maintenance 14 Production facilities, including 9 in North America, and 10 upfit centers 16
Slide 20: Market Leading Product Offerings Across Attractive, Diverse Geographies and End Markets
Market Leading Product Offerings Across Attractive, Diverse Geographies and End Markets Strong brands with leading positions in growing markets in the United States and Europe Street Sweeping & Commercial Trucks & Marking, Environmental Airport Snow & Ice Clearing Agriculture Trailers Maintenance Sn
Slide 21: Strategically Located Manufacturing Footprint
Strategically Located Manufacturing Footprint Complemented by Upfit and Sales Locations and Local Dealer Partnerships Key Sites in the US Europe M-B Airport & MB Brushes M-B Attachments Chilton, WI New Holstein, WI Holten, The Netherlands Jyväskylä, Finland Kielce, Poland Towmaster M-B Pavement Litc
Slide 22: KPI-Driven Management Approach Drives Value Creation
KPI-Driven Management Approach Drives Value Creation Introduced management KPI framework to steer the Company to ensure profitability and positive cash flow Our Stand-alone Strategic Ambitions Management KPI Grow to Top 3 in all Achieve After Sales 1 our business areas 2 Excellence • Organic growth
Slide 23: North America – Significant Opportunity to Expand Existing Footprint
North America – Significant Opportunity to Expand Existing Footprint and Penetrate New Markets Expansion Map Expansion Strategy Monroe Today Under review Expansion targets • Tangible potential for growth through Markets with numerous competitors geographic expansion in US • To grow sustainably and p
Slide 24: Attractive Revenue Growth Across all Regions, with High Visibility from Strong Backlog
Attractive Revenue Growth Across all Regions, with High Visibility from Strong Backlog 2017A – 2024E Order Backlog ($M)(1) 2017A – 2024E Revenue ($M) 666 673 1,064(2) 636 1,016 +9% +5% 174 Monroe 881 242 acquisition 219 491 474 407 Monroe 541 acquisition 489 507 434 254 400 501 424 416 +106% 411 364
Slide 25: Margin Expansion and Strong Cash Generation
Margin Expansion and Strong Cash Generation Driven by Increased Volumes and Operational Excellence 2017A – 2024E EBITDA ($M) 2017A – 2024E Free Cash Flow(1)($M) Europe & ROW 7% 9% 7% 8% 8% 8% 6% 7% 75% 77% 80% 78% 78% 76% 87% 84% North America (6)% (4)% 9% 7% 3% 5% 12% 12% +26% CAGR +28% CAGR 103(2)
Slide 26: North America – Outsized Growth Driven by Market Share Gains
North America – Outsized Growth Driven by Market Share Gains Through Further Expansion 2024E – 2028E Revenue ($M) Strategic Objectives ▪ Airport Business +8% CAGR − Strengthen market leadership position − Increase market share of European 779 products 735 ▪ Commercial Business 675 89 82 − Geographic
Slide 27: Europe & ROW – Stable growth despite challenging market environment
Europe & ROW – Stable growth despite challenging market environment with solid expected growth 2024E – 2028E Revenue ($M) Strategic Objectives ▪ Growth: Maximize market share by +7% CAGR addressing new or former clients 650 ▪ Profitability: Secure profit improvements by 617 improved tender managemen
Slide 28: Stable EBITDA Growth Across North America and Europe & ROW
Stable EBITDA Growth Across North America and Europe & ROW 2024E – 2028E EBITDA ($M) Strategic Objectives ▪ Supply Chain – Secure material availability 10% 10% 10% 10% 11% and reduce material prices, optimization of payment terms (Global SCM Organization) 155 ▪ Pricing – Pricing optimization and abi
Slide 29: Strong Track Record of M&A Execution, Integration and Synergy Realization
Strong Track Record of M&A Execution, Integration and Synergy Realization to Drive Value Creation Landmark transaction, boosting US and commercial vehicles presence Revenue ($M) EBITDA ($M) 2023 Snow & Ice Business +32% +83% (acquired from Oshkosh) 268 353 39 21 2021 Monroe Truck Equipment 2021A 202
Slide 30: Significant Integration Experience to Capture M&A Value
Significant Integration Experience to Capture M&A Value Snow & Ice Business Monroe Truck Equipment M-B Companies (acquired from Oshkosh) Year of Acquisition 2023 2021 2018 Enhance market presence in North America Securing a foothold in the North American Expand Snow & Ice market position in Rational
Slide 31: Value Creation – Integration & Synergies
+ 1 Transaction Overview 2 Aebi Schmidt Overview 3 Value Creation – Integration & Synergies 4 Financial Overview 5 Conclusion Appendix: Additional Support Information
Slide 32: Shyft and Aebi Schmidt Coming Together
Shyft and Aebi Schmidt Coming Together Value Proposition Complementary Operational Footprint Strong North America focus with profitable, leading European products • Utilimaster • Royal Truck Body Broad, diversified offering with • DuraMag/Magnum low cyclicality • Strobes-R-Us • Spartan RV Chassis Ac
Slide 33: Significant Synergy Value with Additional Value Creation Upside
Significant Synergy Value with Additional Value Creation Upside Opportunities $25 - $30M Achievable Run-rate Synergies Creates Significant Value $20 - $25M Cost Synergies • Vertical integration • Cost-saving opportunities from combined supply chain Growth, margin and FCF(1) accretive organization •
Slide 34: Significant Synergies Identified from Integration Plan
Significant Synergies Identified from Integration Plan Annual Run-rate Cost Synergies Type Synergy Commentary Synergy ($M) • Truck bodies manufactured by Shyft can be used for Aebi Schmidt commercial vehicles COGS Reduction ~$3 - $4 currently purchased from competitors, also decreasing supplier risk
Slide 35: Combination Unlocks Attractive Synergy Potential with Customers
Combination Unlocks Attractive Synergy Potential with Customers Expanding Regional Reach and Unlocking Cross-Selling Opportunities for Nationwide Growth Potential to win nationwide customers Leverage existing customer relationships and cross-selling • US-nationwide telecom company operates >70k vehi
Slide 36: Best of Both Companies – How We Will Win
Best of Both Companies – How We Will Win OPERATIONAL CUSTOMER FOCUS MARKET POSITION INNOVATIVE AND EFFICIENCY AND SALES EXCELLENCE AND REACH DIVERSE SOLUTIONS ✓ Advanced production facilities ✓ Established fleet customer ✓ U.S. leader in parcel and freight ✓ Wide-ranging product portfolio relationsh
Slide 37: Financial Overview
+ 1 Transaction Overview 2 Aebi Schmidt Overview 3 Value Creation – Integration & Synergies 4 Financial Overview 5 Conclusion Appendix: Additional Support Information
Slide 38: MergeCo Pro Forma Revenue Supported by Clear Growth Drivers
MergeCo Pro Forma Revenue Supported by Clear Growth Drivers with Additional Cross-Selling Upside Illustrative Pro Forma Revenue ($M)(1)(2) Revenue Growth Drivers Assumes Transaction $2’679 Shyft Group closed on January 1, 2025 $2’559 $2’441 $50 $50 1. Recovery in parcel markets and deeper expansion
Slide 39: MergeCo Pro Forma Adj. EBITDA Driven by Revenue Growth and Cost Optimization
MergeCo Pro Forma Adj. EBITDA Driven by Revenue Growth and Cost Optimization with Significant Margin Upside Illustrative Pro Forma Adj. EBITDA ($M)(1)(2) % margin Profitability Drivers 2022A 2023A 2024E 2025E 2026E 2027E 2028E Pro Forma Combined 8% 9% 9% 10% 10% 11% 12% Shyft Group Aebi Schmidt 7% 9
Slide 40: MergeCo Capital Allocation Strategy
MergeCo Capital Allocation Strategy 1 Cash Flow Generation – Drive free cash flow with efficient working capital management 2 Capital Structure – Maintain a healthy balance sheet 3 Organic and M&A Investment – Invest in growth 4 Portfolio Optimization – Ensure focus on highest ROIC businesses 5 Effi
Slide 41: Conclusion
+ 1 Transaction Overview 2 Aebi Schmidt Overview 3 Value Creation – Integration & Synergies 4 Financial Overview 5 Conclusion Appendix: Additional Support Information
Slide 42: Shyft Group and Aebi Schmidt Combination Creates Highly Attractive Investment Opportunity
Shyft Group and Aebi Schmidt Combination Creates Highly Attractive Investment Opportunity 1 Industry leader with significant scale, North American focus and global reach 2 Complementary end markets, products and service offerings, customers, geographies and cultures 3 Significant synergy value creat
Slide 43: Appendix: Additional Support Information
+ 1 Transaction Overview 2 Aebi Schmidt Overview 3 Value Creation – Integration & Synergies 4 Financial Overview 5 Conclusion Appendix: Additional Support Information
Slide 44: MergeCo Historical and Projected Financial Summary
MergeCo Historical and Projected Financial Summary Excluding Blue Arc Shyft ($M)(1) Aebi Schmidt ($M) CAGR CAGR 2022A 2023A 2024E 2025E 2026E 2027E 2028E 2022A 2023A 2024E 2025E 2026E 2027E 2028E 22A-28E 22A-28E Revenue $1,027 $872 $828 $913 $1,132 $1,156 $1,199 3% $881 $981 $1,064 $1,166 $1,259 $1,
Slide 45: MergeCo Historical and Projected Financial Summary (Including Blue Arc)
MergeCo Historical and Projected Financial Summary Including Blue Arc Shyft ($M) Aebi Schmidt ($M) CAGR CAGR 2022A 2023A 2024E 2025E 2026E 2027E 2028E 2022A 2023A 2024E 2025E 2026E 2027E 2028E 22A-28E 22A-28E Revenue $1,027 $872 $837 $969 $1,242 $1,307 $1,399 5% $881 $981 $1,064 $1,166 $1,259 $1,353
Slide 46: Immediate Step-Function Increase in Sustainable Value Creation for Shyft Shareholders
Immediate “Step-Function” Increase in Sustainable TEV / CY2025E EBITDA Federal Signal: 16.0x Value Creation for Shyft Shareholders REV Group: 9.8x Douglas Dynamics: 8.9x Public Peer Median(1): 8.9x Illustrative Shyft Pro Forma Implied Equity Value Per Share ($) ($M, except per share values) Proposed
Slide 47: Comparable Public Company Valuation Benchmarking
Comparable Public Company Valuation Benchmarking TEV / CY2025E EBITDA(1) 2025E TEV / 2025E 2025E TEV / 2025E Research Analyst TEV / CY2025E EBITDA EBITDA ($M)(2) EBITDA Adj. EBITDA ($M) Adj. EBITDA D.A. Davidson $65 8.3x $74 7.3x Federal Signal: 16.0x BTIG $54 9.9x $64 8.5x REV Group: 9.8x Roth MKM
Slide 48: Shareholders Include Global Blue Chip Institutional Investors and Swiss Entrepreneur
Shareholders Include Global “Blue Chip” Institutional Investors and Highly Regarded Swiss Entrepreneur and Industrialist Shyft Aebi Schmidt Pro Forma Combined Shareholdings Shyft Management Barend Fruithof + Aebi Schmidt Management Gebuka AG Peter Spuhler Barend Fruithof 3% 8% (including + Pro Forma
Slide 49: Investors / Media Contacts
Investors Randy Wilson Vice President, Investor Relations and Treasury Randy.Wilson@theshyftgroup.com / 248.727.3755 Media Sydney Machesky Director, Corporate Communications Sydney.Machesky@theshyftgroup.com / 586.413.4112 FGS Global Jim Barron/Warren Rizzi shyft@fgsglobal.com
Slide 50: © V7
© V7
Aebi Schmidt Group — Merger or Acquisition (January 2025) on 6ix