Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — The Manitowoc Company — Baird 2022 Global Industrial Conference
23 slides from Manitowoc Company, Inc. (the)'s conference presentation, Nov 9, 2022
Slide 1: Baird 2022 Global Industrial Conference
Baird 2022 Global Industrial Conference November 9, 2022 Aaron Ravenscroft President & CEO Brian Regan EVP & CFO Ion Warner SVP Marketing & Investor Relations
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, an
Slide 3: The Manitowoc Company, Inc.
The Manitowoc Company, Inc. MANITOWOC CHANGES THE WAY OUR COMMUNITIES LOOK 3
Slide 4: Values & Behaviors: Safety
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 2021: Acquired Aspen Equipment & H&E crane business 2008: Sold Shipbuilding 2001: Acquired 2016: Spun-off Potain tower cranes Foodservice 2002: Acquired Grove mobile cranes 1952: Renamed The Manitowoc Company 1995: First “modern” large crawler crane launched 1925: Production of Moore Spe
Slide 6: Company Overview
Company Overview • 2021 Revenue: $1.7B • 2021 Adjusted EBITDA: $116M (6.7% of sales)2 • 2021 Net Working Capital: $400M (23% of TTM sales) • 2021 Net Leverage Ratio: 2.9x • Global footprint • Strong brand-loyalty • Large installed-base, and growing aftermarket MARKET LEADING PROVIDER OF LIFTING SOLU
Slide 7: The Manitowoc Way
The Manitowoc Way Employee Engagement Innovation Growth A CULTURE BUILT ON SERVING OUR CUSTOMERS 7
Slide 8: Manitowoc's Vision for the Future
Aftermarket Growth Strategy Manitowoc’s Vision for the Future Build out Expand Grow EU Aftermarket China and Accelerate Tower Crane activities in Belt & Road NPD in All- Rental & North Tower Crane Terrain Aftermarket America Business Cranes THE MANITOWOC WAY Macro-Trends Infrastructure Electrificati
Slide 9: Non-new Machine Sales Benefits
Non-new Machine Sales Benefits Recurring Revenue Higher Margins Getting Closer to Leverage Digital Stream • Typically carry margin Customers Solutions • Grow recurring rates 2x – 3x greater • More field techs drive • Telematics enable parts revenue streams than new crane sales higher parts & service
Slide 10: Non-new Machine Sales Dynamics
Non-new Machine Sales Dynamics 5-YEAR CATEGORY EBITDA IMPACT1 COMMENTARY REVENUE TREND • Installed base drives funnel for parts & service Parts & Service ✔✔ • Field service techs contribute to growth • Acquisitions enable selling direct to end users • Provides options for customers • Supports increa
Slide 11: EU Towers Market Opportunity
EU Towers Market Opportunity Benefits of Parts Rental Fleet Service • New sales bundles New Cranes • New customer opportunities • Recurring rental revenue Used Cranes Rental • Less cyclical • Used crane growth • Service sales expansion • Attractive returns Source: MTW estimates $3 BILLION MARKET | ~
Slide 12: Build Out Belt & Road Tower Crane Business
Build Out Belt & Road Tower Crane Business • Transitioned our China factory into a regional business • Engineering and designing locally for local markets • Growing share in the Belt & Road markets GROWING OUR PRESENCE IN DEVELOPING ECONOMIES 12
Slide 13: Expand Aftermarket Activities in N. America
Expand Aftermarket Activities in N. America Fleet Support Services Technician Talent Pool Parts Sales MGX and Aspen Reman/Refurb Branch/Service Location Acquired Honnen Territory New Boom Truck Territory Remanufacturing Location ACQUISITIONS ARE THE PLATFORM FOR GROWTH 13
Slide 14: Accelerate NPD in All-Terrains
Accelerate NPD in All-Terrains Filling gaps in our All-Terrain product range to grow our global market share Increasing our product portfolio with a wider range of models Expanding key technology architectures, such as Maxbase and Grove ConnectTM Growing installed base to drive non-new machine sales
Slide 15: Non-new machine sales TTM Revenue
Non-new machine sales TTM Revenue ($M) DRIVE RECURRING REVENUE STREAMS AND REDUCE CYCLICALITY 15
Slide 16: Long-Term Goals
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 co
Slide 17: Capital Allocation
Capital Allocation Rental Fleet Growth Acquisitions ~$15M invested in 2021 ~$180M invested in 2021 ~$20-25M expected in 2022 <3x Target Net Leverage 2.9x Net Leverage1 $245M Dividend Program Total Liquidity2 Share Repurchase3 None currently approved ~$9M remaining authorization 1 Based on TTM 9/30/2
Slide 18: Macro-Trends: An Eventual Crane Renaissance
Macro-Trends: An Eventual Crane Renaissance Total Revenue ($M) 2004 - 2008 Avg Revenue: ~$2,400 $4,000 $3,000 2010 - 2013 Avg Revenue: ~$2,200 2020 – 2022F Avg Revenue: ~$1,750 2017 - 2019 Avg Revenue: ~$1,700 $2,000 $1,000 $0 MANITOWOC IS LONG-TERM FOCUSED 18
Slide 19: Appendix
@anit owoc’ Appendix
Slide 20: The Manitowoc Way: ESG
The Manitowoc Way: ESG MSCI ESG RATING A • ESG is incorporated into our Short-Term Incentive plan • Safety – 36-month rolling RIR has improved from 1.87 in June 2019 to 1.39 in October 2022 • Environmental – implemented Accuvio environmental accounting software to track our progress • Diversity – ex
Slide 21: Financial Metrics ($millions)
Financial Metrics ($millions) Revenue & Adjusted EBITDA Margin1 Adjusted Free Cash Flow3 8.5% 6.3% 1.8% 6.7% 4.7% 5.8% $113 $37 $36 $1,847 $1,834 $1,720 $1,613 $1,581 ($35) $1,443 ($61) ($124) 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 Revenue Adj EBITDA Margin Net Operating Working
Slide 22: Appendix – Adjusted EBITDA Reconciliation
Appendix – Adjusted EBITDA Reconciliation Adjusted EBITDA and Adjusted Operating Income The Company defines adjusted EBITDA as earnings before interest, income taxes, depreciation and amortization, plus adjusting for the net impact of restructuring and certain other items. The reconciliation of net
Slide 23: Contact: Ion Warner
Contact: Ion Warner SVP Marketing & Investor Relations ion.warner@manitowoc.com O: 414-760-4805 M: 717-414-1813
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