Standex International Corporation · NYSE:SXI
Standex International — Investor Presentation (February 2005)
31 slides from Standex International's investor presentation, Feb 16, 2005
Slide 1: Standex International
sil Standex International Diversity Acquisitions Excellence Products Solutions = February 18, 2008
Slide 2: Safe Harbor Statement
or Mil Safe Harbor Statement Included in this presentation are certain "forward-looking" statements, involving risks and uncertainty, which are covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the wo
Slide 3: Standex
= Standex $600M+ in annual sales Multi-industry niche market leader Good platform for consistent growth over the long term Cash Flow Driven
Slide 4: Standex Highlights
Standex Highlights = Double-digit increases in sales and earnings over the past six quarters = Diversified revenue base = Over $56M reduction in working capital over the past four years = Working capital turns of 5.4 = 39 Years of dividends; 35 increases = Multi-year restructuring/realignment goals
Slide 5: Standex Strategy
rm Ml Standex Strategy © Focused Diversity = Fewer, larger and more profitable business units = Future investment and growth plans focused on building selected, strategic business units © Emphasize value add businesses product segments to yield higher returns = Customer solutions and engineered prod
Slide 6: Focused Diversity Implementation
“ml | | Focused Diversity Implementation Phase | — Restructuring and Realignment = Six businesses sold or closed ($97M in annual sales) Five plant consolidations Five strategic acquisitions ($75M in annual sales) $8M in annual savings $8M gain on sale of land and buildings Significantly strengthened
Slide 7: Business Segments
TT | Business Segments Food Service Equipment Group Air Distribution Products Group Engineered Products Consumer Products Standex Engraving = al ‘
Slide 8: Segment Performance FY YTD 12/31/04
FY 05 YTD 12/31/04 Food Service ml Segment Performance Equipment ADP Food Service a Equipment S&S Consumer DP a 35.8% Engraving > Engraving Cc Engineered onsumer: Products Engineered Products Net Sales Income from Operations = al 1
Slide 9: Shared Segment Strengths
Shared Segment Strengths » Niche Market leadership » Brand equity = Technology, quality and service leadership » Low-cost production = Consistent cash flow/growth profiles » Organic growth from essential products = Growth from bolt-on acquisitions
Slide 10: Food Service Equipment Group
mT | Food Service Equipment Group = Products: walk-in coolers, freezers; merchandising display cases; rotisseries and fryers; institutional feeding systerns = Markets: restaurant industry, food retailers, institutional caterers = Key brands: Master-Bilt; Nor- Lake; BKI; UISECO; Federal; Procon + Mar
Slide 11: Food Service Equipment Group
mT Ml Food Service Equipment Group Growth Drivers - Favorable demographics - Modern life style favors eating out/take away meals - Non-traditional retail stores adding food products Growth Strategy _ Exploit brand service, quality and technology reputation _ Diversify sales channel and broaden produ
Slide 12: Air Distribution Products Group
7 | Air Distribution Products Group = Products: galvanized steel duct work = Key brands: Snappy, ACME, ALCO, Standex * Markets: new residential construction, remodels = Market rankings: #1 national residential galvanized steel duct work u
Slide 13: Air Distribution Products Group
7 Ml Air Distribution Products Group = Growth Drivers ~ Market for new homes and apartments - Increased size of homes ~ Remodeling of aging housing stock = Growth strategy ~ Leverage nationwide presence with large HVAC wholesaler chains - Access DIY market ~ Acquire commercial HVAC capability = Prio
Slide 14: Standex Engraving
TT | Standex Engraving = Products: mold texturizing and roll, plate engraving = Key brands: Mold Tech, Roehlen. Engraving IR International, Mullen, Eastern Engraving, B.F. Perkins, Dornbusch = Markets: auto, construction material, flooring, consumer products, electronics = Market rankings: #1 global
Slide 15: Standex Engraving
TT | Standex Engraving = Growth Drivers - New automobile designs, product introductions - New applications for texturized surfaces = Growth strategy ~ Expand global network (China, Mexico, Eastern Europe) - Maintain technology edge in digital techniques = Priorities - Leverage global technologies an
Slide 16: Consumer Products
Ml | | Consumer Products " Products: retail book store, religious-themed published materials; mail- order food products = Key brands: Berean Christian Stores, Standard Publishing, Standex Direct " Markets: Christian families, churches, schools, organizations; mail-order market 15
Slide 17: Consumer Products
Ml | | Consumer Products = Growth Drivers - Retail spending in niche Christian book and gift market - Best seller pull through = Growth strategy - Expand/build on Standard Publishing brand in other publishing segments - Add 2-3 new Berean stores per year in target markets = al 16
Slide 18: Engineered Products
Engineered Products = Products/key brands; metal fabrication; telescopic, piston rod cylinder hoists; electro- mechanical engineered products, electronic components = Key Brands/Merkets © Spincraft + Aerospace, energy + Standex Electronics + Automotive and industrial electrical systems * Custom Hois
Slide 19: Engineered Products
TT | Engineered Products = Growth Drivers ~ Industrial expansion (energy & aerospace) - Automotive - Automation/consumer convenience ~ Construction spending = Growth Strategy - Product sales channel and market diversification ~ New product development ~ Geographic expansion = Priorities ~ Invest in
Slide 20: Capital Allocation
7 Ml Capital Allocation ° How do we use our cash? - Support investment needs of divisions - Acquisitions - Dividends - Debt reduction + Stock buyback ° Capital allocation: ROCE + strategic fit = al rt)
Slide 21: Acquisition Criteria
Acquisition Criteria = Strategic bolt-ons Exploitable synergies = Sales typically between $10-$70M Targeted to be accretive in first year = Purchase price range of 4-7X EBITDA = Prefer privately held companies Purchase terms cash and/or stock 0
Slide 22: Management Compensation
Management Compensation Annual Incentive Plan (AIP) * Current year financial goals (60%) = Sales = Earnings = Operating cash © Long term (2-3 year) strategic goals (40%) = Sales growth = Operational excellence * Minimum 25% paid out in SXI stock ml Performance Based Long Term Incentive Plan (LTIP) ©
Slide 23: Corporate Governance
Corporate Governance » Updated board and subcommittee charters » In compliance with all SEC and NYSE governance requirements » Three new independent directors added » SOX compliance = al 2
Slide 24: Near Term Management Focus
Near Term Management Focus - Drive organic sales growth and diversification » Complete strategic bolt-on acquisitions ¢ Continue to implement Lean Enterprise ¢ Startup Mexico manufacturing facility ¢ Exploit China sourcing opportunities ¢ Maintain working capital turns 2B
Slide 25: Financial Highlights
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Slide 26: Financial Highlights
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Slide 27: EPS from Continuing Operations
Slide 28: Net Working Capital reduced by $56 million since 6/30/2000
Net Working Capital reduced by $56 million since 6/30/2000 7
Slide 29: Net Debt reduced by $55 million since 6/30/2000
Net Debt reduced by $55 nallion since 6/30/2000 Leverage reduced from 48.9% to 33.9% ‘arden Flerralional corporation et Gect (trousarae) == 28
Slide 30: Fiscal Years 2005 to 2008
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Slide 31: Segment Performance
TT Ml Segment Performance 2 2m3_| Change Nat Sales Food Service Equipment Group 7827 85698 ar.as| ‘Ar Dietibution Products Group 67.670 87286 10.1% Engraving Group a7Azr 34266 6.2% Engineered Products Group 9/300 47 28 0% Consumer Produce Group aaa 2630: 2.5% Total Net Salee mean | Hoga as Income fo
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