Twin Disc, Incorporated · NASDAQ:TWIN
Twin Disc — Investor Presentation (November 2012)
39 slides from Twin Disc's investor presentation, Nov 6, 2012
Slide 1: We Put Horsepower to Work
Twin Disc, Incorporated November 7, 2012 WE PUT HORSEPOWER TO WORK ™
Slide 2: Safe Harbor Statement
Twin Disc, Incorporated November 7, 2012 Safe Harbor Statement This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations that are based on assump
Slide 3: Twin Disc At A Glance
Twin Disc, Incorporated November 7, 2012 • Founded in 1918 • Headquartered in Racine, WI • ≈1,030 employees (FYE ‘12) • FY12 Revenues of $356M FY11 Revenues of $310M FY10 Revenues of $228M • We are a global company – Well-known customers around the world – Mfg Operations in the U.S., Italy, Belgium,
Slide 4: FY 2012 Highlights
Twin Disc, Incorporated November 7, 2012 FY 2012 Highlights $ millions $ millions • Quarterly sequential sales & earnings improvement – Sales up over 15% vs. FY ‘11 – Earnings up nearly 40% to record $2.26 per diluted share • Key Markets – Oil & gas markets experienced strong growth in shipments com
Slide 5: Net Sales & Net Earnings
Twin Disc, Incorporated November 7, 2012 Net Sales & Net Earnings (1 st Fiscal Quarter) • Sales down 15.4% from record Q1 ‘12 – Pressure pumping transmission business continued to slow down – Commercial marine business experienced strong demand in North America (Gulf Coast) & Asia (particularly in C
Slide 6: Land-Based Products: Pressure Pumping
Twin Disc, Incorporated November 7, 2012 Land-Based Products Pressure Pumping • Fiscal 2012 Highlights: – Achieved record unit sales – Introduced 7500 series transmission into the market – Backlog declined as order activity dropped throughout the 2 nd half of fiscal year • Fiscal 2013 Outlook: – Exp
Slide 7: Land-Based Products: ARFF & Military
Twin Disc, Incorporated November 7, 2012 Land-Based Products ARFF & Military • Fiscal 2012 Highlights: – ARRF and military transmission sales continued to show modest, steady growth • Fiscal 2013 Outlook: – Developing next generation transmission system – Market to remain stable, with potential for
Slide 8: Land-Based Products: Industrial Products
Twin Disc, Incorporated November 7, 2012 Land-Based Products Industrial Products • Fiscal 2012 Highlights: – Shipments and orders up in N. America, and more moderately in Europe – Aggregate, recycling, construction and oil & gas markets recovered from post recession levels • Fiscal 2013 Outlook: – M
Slide 9: Marine & Propulsion Systems: Commercial Marine
Twin Disc, Incorporated November 7, 2012 Marine & Propulsion Systems Commercial Marine • Fiscal 2012 Highlights: – N. American (particularly Gulf Coast) market experienced strong year-over-year gains – Asia continued near record levels – European shipbuilding remained at weak levels • Fiscal 2013 Ou
Slide 10: Marine & Propulsion Systems: Patrol Boat
Twin Disc, Incorporated November 7, 2012 Marine & Propulsion Systems Patrol Boat • Fiscal 2012 Highlights: – Growth continued in Asia, especially China, as need for coastal security increased – Twin Disc propulsion package recognized as the standard for fast patrol boat technology • Fiscal 2013 Outl
Slide 11: Marine & Propulsion Systems: Pleasure Craft
Twin Disc, Incorporated November 7, 2012 Marine & Propulsion Systems Pleasure Craft • Fiscal 2012 Highlights: – Market remained at historic lows (down 50-70% versus prior highs) – EJS™ introduced, gained market share – Announced Caterpillar agreements • Fiscal 2013 Outlook: – New boat construction t
Slide 12: Corporate Profile - Geographic Diversity
Twin Disc, Incorporated November 7, 2012 Corporate Profile - Geographic Diversity Sales (as a % of total sales) FY2012 FY2006 • Highlights: – More than 50% of sales were outside the USA in fiscal 2012 – Asia surpassed Europe as 2 nd largest end market (achieving record sales) – Sales to China more t
Slide 13: Managing Our Cost Structure
Twin Disc, Incorporated November 7, 2012 Managing Our Cost Structure CAPEX • Investing in core competencies • Expanding presence in low cost manufacturing locations • Spent $90+ million over past 8 yrs
Slide 14: Managing Our Cost Structure: Low Cost
Twin Disc, Incorporated November 7, 2012 Low Cost Sourcing Offices Managing Our Cost Structure Lower Cost Corporate HQ/Mfg Mfg locations
Slide 15: What Differentiates Us? Technology
Twin Disc, Incorporated November 7, 2012 • Technology – Oil & Gas • 8500 Series – ARFF • “Pump & Roll” – Military • “Legacy” Contracts What Differentiates Us? – Marine • Patented QuickShift® • Dynamic Positioning/DPII • Rolla CFD
Slide 16: What Differentiates Us?
Twin Disc, Incorporated November 7, 2012 What Differentiates Us? • 94+ Years of Proven Application Know-How • Niche Market Focus • Product/Market & Geographic Diversity • Core Manufacturing Capabilities # Mfg location Co.-owned dist. 3 rd Party dist. Service dealers
Slide 17: Looking Ahead
Twin Disc, Incorporated November 7, 2012 Looking Ahead
Slide 18: Corporate Six Month Backlog
Twin Disc, Incorporated November 7, 2012 FY04 FY05 FY06 FY07 $ millions Corporate Six Month Backlog (Mfg Orders to be shipped in the next 6 months) FY08 FY09 FY11 FY10 FY12 FY13
Slide 19: Fiscal Year 2013 Outlook
Twin Disc, Incorporated November 7, 2012 Fiscal Year 2013 Outlook • Oil and Gas landscape causes near term outlook to be cautious • Marine markets will remain mixed – Pleasure Craft improving off of low base, primarily from market share gains - EJS™ & Cat Three60 impact – Work Boat, including US Gul
Slide 20: Fiscal Year 2014 & Beyond
Twin Disc, Incorporated November 7, 2012 Fiscal Year 2014 & Beyond • Oil and Gas landscape: mid to longer term prospects remain very favorable – Continued globalization of the pressure pumping business – 7500 expected to gain market share • Global marine markets expected to be growing – Pleasure Cra
Slide 21: We Put Horsepower to Work
Twin Disc, Incorporated November 7, 2012 WE PUT HORSEPOWER TO WORK ™
Slide 22: Appendices
Twin Disc, Incorporated November 7, 2012 Appendices
Slide 23: Corporate Profile - Market Diversity: Pleasure Craft
Twin Disc, Incorporated November 7, 2012 Appendix I Corporate Profile - Market Diversity Pleasure Craft Market: • Target Markets: High speed planing and displacement yachts from 50’ to 150’, diesel-powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water J
Slide 24: Corporate Profile - Market Diversity: Work Boat
Twin Disc, Incorporated November 7, 2012 Appendix II Corporate Profile - Market Diversity Work Boat Market: • Target Markets: planing and displacement vessels from 30’ to 250’, diesel-powered • Products: Transmissions, Propellers, MCD’s, Water Jets, Controls • Channels: Engine OEMs & dealers, boat b
Slide 25: Corporate Profile - Market Diversity: Patrol Boat
Twin Disc, Incorporated November 7, 2012 Appendix III Corporate Profile - Market Diversity Patrol Boat Market: • Target Markets: military, patrol and coast guard vessels from 30’ to 90’, diesel-powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water Jets,
Slide 26: Marine Transmissions, Propulsion & Boat Management Systems
Twin Disc, Incorporated November 7, 2012 Appendix IV QuickShift® Transmissions EJS®/Electronic Controls Bow Thrusters Anchor Winches Gangways Trim Tabs, Stern Thrusters Power Steering Marine Transmissions, Propulsion & Boat Management Systems Corporate Profile - Market Diversity We have been very su
Slide 27: Corporate Profile - Market Diversity: Industrial Products
Twin Disc, Incorporated November 7, 2012 Appendix V Corporate Profile - Market Diversity Industrial Products: • Target Market: Heavy duty industrial disconnect applications • Products: Mechanical & hydraulic clutches, PTOs & pump mount drives, 100 - 2,500 HP • Channels: Distribution & OEMs • Custome
Slide 28: Corporate Profile - Market Diversity: Industrial Transmissions
Twin Disc, Incorporated November 7, 2012 Appendix VI Corporate Profile - Market Diversity Industrial Transmissions: • Target Market: Off-highway and all-terrain specialty vehicles, diesel powered • Products: Powertrain components - 400 to 3,000 HP • Channel: OEM vehicle mfrs. • Customers: BAE, Rosen
Slide 29: Frac Rig Diagram
Twin Disc, Incorporated November 7, 2012 Engine Transmission Pump Appendix VII Frac Rig Diagram
Slide 30: VIII
Twin Disc, Incorporated November 7, 2012 Appendix VIII $ millions % sales * See Appendix X for reconciliation of TTM figures to reported figures.
Slide 31: Non-GAAP Financial Disclosures
Twin Disc, Incorporated November 7, 2012 Appendix IX Non-GAAP Financial Disclosures Non-GAAP Financial Disclosures Financial information excluding the impact of certain significant items in this presentation are not measures that are defined in U.S. Generally Accepted Accounting Principles (“GAAP”).
Slide 32: Reconciliation of Net Earnings to EBITDA
Twin Disc, Incorporated November 7, 2012 Appendix X Reconciliation of Net Earnings to EBITDA * See Appendix XI for reconciliation of TTM figures to reported figures.
Slide 33: Reconciliation of TTM Data to Reported Quarterly Figures
Twin Disc, Incorporated November 7, 2012 Appendix XI Reconciliation of TTM Data to Reported Quarterly Figures
Slide 34: Fiscal Year Condensed Consolidated Statements of Operations
Twin Disc, Incorporated November 7, 2012 Appendix XII Fiscal Year Condensed Consolidated Statements of Operations * Represents trailing four quarter figures as of the quarter ending September 28, 2012. See Appendix XI for reconciliation of TTM figures to reported figures.
Slide 35: 1st Fiscal Qtr Condensed Consolidated Statements of Operations
Twin Disc, Incorporated November 7, 2012 Appendix XIII 1 st Fiscal Qtr Condensed Consolidated Statements of Operations
Slide 36: Historical Net Sales by Segment
Twin Disc, Incorporated November 7, 2012 Appendix XIV $317 $310 $332 $296 Historical Net Sales by Segment $228 $356
Slide 37: Historical Net Earnings by Segment (before Corporate Expense)
Twin Disc, Incorporated November 7, 2012 Appendix XV Historical Net Earnings by Segment (before Corporate Expense)
Slide 38: Express Joystick System in Action
Twin Disc, Incorporated November 7, 2012 Express Joystick System® in Action Go to http://www.twindisc.com/MarineProducts/EJS.html to see the new revolutionary Twin Disc Express Joystick System® in action.
Slide 39: We Put Horsepower to Work
Twin Disc, Incorporated November 7, 2012 WE PUT HORSEPOWER TO WORK ™