Columbus Mckinnon Corporation · NASDAQ:CMCO

Columbus Mckinnon — Investor Presentation (May 2022)

34 slides from Columbus Mckinnon's investor presentation, May 26, 2022

  1. Slide 1: Investor Presentation May 2022

    © 2022 COLUMBUS McKINNON CORPORATION Investor Presentation May 2022 1 Gregory P. Rustowicz Senior Vice President Finance and Chief Financial Officer David J. Wilson President and Chief Executive Officer

  2. Slide 2: Safe Harbor Statement

    © 2022 COLUMBUS McKINNON CORPORATION 2 Safe Harbor Statement These slides, and the accompanying oral discussion (together, this “presentation”), contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limit

  3. Slide 3: Intelligent Motion Solutions for Material Handling

    © 2022 COLUMBUS McKINNON CORPORATION 3 Intelligent Motion Solutions for Material Handling (1) Market data as of 5/23/2022 (Source: S&P Capital IQ); Financial data represents fiscal year ended March 31, 2022 (2) Product mix data represents fiscal year ended March 31, 2022 Columbus McKinnon (Nasdaq: C

  4. Slide 4: Blueprint for Growth 2.0

    © 2022 COLUMBUS McKINNON CORPORATION 4 Blueprint for Growth 2.0 Business System and Core Growth Framework Transform CMCO Strategy evolves Columbus McKinnon into a high value, intelligent motion enterprise

  5. Slide 5: Columbus McKinnon Business System (CMBS) enables top-tier performance and scalability

    © 2022 COLUMBUS McKINNON CORPORATION 5 Columbus McKinnon Business System (CMBS) enables top-tier performance and scalability Columbus McKinnon Business System 8. Operations 9. Finance 10. Digitization 6. Commercial / Selling 7. Product Development 1. People & Values 2. Strategic Planning 3. Marketin

  6. Slide 6: CMBS framework provides repeatable, sustainable enterprise-wide processes

    © 2022 COLUMBUS McKINNON CORPORATION 6 CMBS framework provides repeatable, sustainable enterprise-wide processes CMBS Cascading Tiers Playbook for Standard Work and Processes Level 1 Strategic Framework (4) Level 3 Key Processes (65) Level 4 Sub-Processes (270) • Commercial / Selling • Customer Expe

  7. Slide 7: Our Core Growth Framework

    © 2022 COLUMBUS McKINNON CORPORATION 7 Our Core Growth Framework Providing a clear path to organic and strategic growth initiatives Rethink current addressable markets and target further strategic expansion through innovative approaches Improve vertical market, channel and geographic access, expand

  8. Slide 8: Business Model Evolution

    © 2022 COLUMBUS McKINNON CORPORATION 8 Business Model Evolution Revenue Growth Rate EBITDA Margin CMCO FY22 With Conveying Solutions Platform Crane Solutions 46% Industrial Products 42% Engineered Products 12% Automation 13%Linear Motion 10% Lifting Solutions 61% Conveying Solutions 16% Automation 1

  9. Slide 9: Increasing Presence in Secularly Driven Markets

    © 2022 COLUMBUS McKINNON CORPORATION 9 Highly diverse end markets with varying industry cycles Increasing Presence in Secularly Driven Markets Conveying Solutions Serves Less Cyclical Industries General Industrial 23% Transportation 15% Material Handling 11% Energy & Utilities 9% Construction 7% Foo

  10. Slide 10: Global leader in intelligent motion solutions for material handling

    © 2022 COLUMBUS McKINNON CORPORATION 10 Global leader in intelligent motion solutions for material handling Columbus McKinnon Legacy Solutions Lifting, Linear Motion and Automation Solutions Standard Hoist & Rigging Products: #1 U.S. market position in hoists Lifting capacity from 1/8 ton to ~140 to

  11. Slide 11: Conveying Solutions Advances Intelligent Motion Strategy

    © 2022 COLUMBUS McKINNON CORPORATION Conveying Solutions Advances Intelligent Motion Strategy Developing Leading Platform for Growth Scalable, high-growth platform to advance our Intelligent Motion Strategy 11 Specialty conveying provides growth platform: ~$4B TAM growing at 6% to 8% CAGR Higher mar

  12. Slide 12: Acquired Garvey Corporation December 1, 2021

    © 2022 COLUMBUS McKINNON CORPORATION 12 Acquired Garvey Corporation December 1, 2021 Leader in accumulation technology complements Dorner’s conveying solutions Leading automation solutions company concentrated in F&B and pharma Provides unique, patented technologies in the design, application, manuf

  13. Slide 13: Secular Growth Markets Provide Strong Tailwinds

    © 2022 COLUMBUS McKINNON CORPORATION 13 Strong performance and market share gains within attractive verticals Secular Growth Markets Provide Strong Tailwinds Single piece picking, robotics integration to automate picking and sorting functions ~3% of FY22 sales* Custom designed sanitary and easy to c

  14. Slide 14: Driving Organic Growth with New Products

    © 2022 COLUMBUS McKINNON CORPORATION 14 Improved customer experience, safety and productivity at the core of new product development Driving Organic Growth with New Products Delivering Innovation • Unique, beltless zone control for pallet and tray handling • Ideal for accumulation and automation ass

  15. Slide 15: Driving Innovation Through Automation

    © 2022 COLUMBUS McKINNON CORPORATION 15 Creating competitive advantages with pre-engineered automation solutions Driving Innovation Through Automation Intelli-Crane™ Solutions INTELLI-LIFT™ AUTO DETECTIONINTELLI-PROTECT™ SYSTEM INTELLI-CONNECT™+ MOBILE APP • Visible and audible warnings when off- ce

  16. Slide 16: Strong Track Record of Creating Value Through M&A

    © 2022 COLUMBUS McKINNON CORPORATION January 2017 Acquisition of STAHL CraneSystems from Konecranes for ~$218M strengthens leading global position in lifting solutions Transforming Columbus McKinnon into a top-tier, higher growth, higher margin enterprise 16 Strong Track Record of Creating Value Thr

  17. Slide 17: Strong Demand Across Markets

    © 2022 COLUMBUS McKINNON CORPORATION 17 Driving towards $1 billion in annual revenue Strong Demand Across Markets NET SALES $186.2 $213.5 $223.6 $216.1 $253.4 Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 (1)Guidance provided on May 25, 2022. $649.6 $906.6 FY21 FY22 ($ in millions) Strong demand for intel

  18. Slide 18: Converting Revenue to Earnings

    © 2022 COLUMBUS McKINNON CORPORATION 18 Advancing strategy to drive profitable growth and realize long-term objectives Converting Revenue to Earnings ADJUSTED EBITDA MARGIN Adjusted EBITDA margin benefits from accretive acquisitions and strong demand 13.9% 16.0% 16.1% 14.2% 15.4% Q4 FY21 Q1 FY22 Q2

  19. Slide 19: CMBS to Deliver Margin Expansion

    © 2022 COLUMBUS McKINNON CORPORATION Created more than $45 million of incremental OI beginning in FY19… More opportunities to pursue CMBS to Deliver Margin Expansion 80/20 Critical Business Tool Product SKUs Down to ~26,500 from ~50,000 in 2019 Goal: 26,000 Purchased parts Reduced by 33% to ~270,000

  20. Slide 20: Free Cash Flow

    © 2022 COLUMBUS McKINNON CORPORATION $67.2 $97.4 $86.6 $35.8 88% 127% 229% 45% FY19 FY20 FY21 FY22 20 Free Cash Flow (2) Cash Flow • Positive cash generation in Q4 FY22 reflects cash management efforts including improved inventory turns • FY22 includes cash outflow of $14.0 million for acquisition d

  21. Slide 21: Capital Structure

    © 2022 COLUMBUS McKINNON CORPORATION 21 Capital Structure Financial flexibility • ~$198 million of liquidity Pro-forma net debt leverage ratio of ~2.7x(1) • Net debt to net total capital: 33.9% Financed Dorner acquisition with $207 million of equity and $450 million Term Loan B Financed Garvey acqui

  22. Slide 22: Continued Strength in Orders

    © 2022 COLUMBUS McKINNON CORPORATION 22 Continued Strength in Orders Record backlog of $309.1 million Orders and Backlog • 29% year-over-year increase driven by strong demand across all markets • Avg daily order rate up 13% compared with trailing quarter • Up 10% in both short-cycle and project busi

  23. Slide 23: Outlook and Perspective

    © 2022 COLUMBUS McKINNON CORPORATION 23 Creating a scalable business model with stronger earnings power Outlook and Perspective (1) Revenue guidance provided May 25, 2022 Q1 FY2023 outlook • Expect Q1 FY23 net sales of approximately of $220 million to $230 million(1), a mid-single digit organic grow

  24. Slide 24: Key Takeaways

    © 2022 COLUMBUS McKINNON CORPORATION 24 Key Takeaways Transforming to a Top-tier, Secular Growth, Intelligent Motion Solutions Enterprise Growth strategy is underpinned by CMBS enabling scalability and operational excellence EVOLVED STRATEGY BLUEPRINT FOR GROWTH 2.0 DEFINES GROWTH FRAMEWORK COLUMBUS

  25. Slide 25: Gregory P. Rustowicz Senior Vice President Finance and Chief Financial Officer David J. Wilson

    © 2022 COLUMBUS McKINNON CORPORATION Investor Presentation May 2022 25 Gregory P. Rustowicz Senior Vice President Finance and Chief Financial Officer David J. Wilson President and Chief Executive Officer

  26. Slide 26: Supplemental Information

    © 2022 COLUMBUS McKINNON CORPORATION Supplemental Information 26

  27. Slide 27: Advancing ESG priorities aligned with materiality assessment

    © 2022 COLUMBUS McKINNON CORPORATION 27 Advancing ESG priorities aligned with materiality assessment Launched Inaugural CSR Report Strategic Initiatives • Five-year plan – based on baselines, gap analysis & target setting • Tightly aligned with business strategy • Prioritized by impact, risk assessm

  28. Slide 28: Capacity Utilization

    © 2022 COLUMBUS McKINNON CORPORATION 28 U.S. Capacity Utilization Eurozone Capacity Utilization Industrial Capacity Utilization Source: The Federal Reserve Board Source: European Commission 60% 65% 70% 75% 80% Manufacturing Total 79.2% (Manufacturing) 79.0% (Total) April 2022(1) 65% 67% 69% 71% 73%

  29. Slide 29: ISM Production Index

    © 2022 COLUMBUS McKINNON CORPORATION 29 ISM Production Index Source: Institute for Supply Chain Management 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 55.4% April 2022

  30. Slide 30: Adjusted Net Income Reconciliation

    © 2022 COLUMBUS McKINNON CORPORATION 30 Adjusted Net Income Reconciliation ($ in thousands, except per share data) Quarter Q4 FY21 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 GAAP net income (loss) $ 9,585 $ (7,263) $ 15,203 $ 9,894 $ 11,826 Add back (deduct): Amortization of intangibles 3,174 6,109 6,285 6,254

  31. Slide 31: Adjusted Net Income Reconciliation

    © 2022 COLUMBUS McKINNON CORPORATION 31 Adjusted Net Income Reconciliation (1)Applies normalized tax rate of 22% to GAAP pre-tax income and non-GAAP adjustments above, which are each pre-tax. Adjusted net income and diluted EPS are defined as net income and diluted EPS as reported, adjusted for cert

  32. Slide 32: Adjusted EBITDA Reconciliation

    © 2022 COLUMBUS McKINNON CORPORATION 32 Adjusted EBITDA Reconciliation Adjusted EBITDA is defined as net income before interest expense, income taxes, depreciation, amortization, and other adjustments. Adjusted EBITDA is not a measure determined in accordance with generally accepted accounting princ

  33. Slide 33: Free Cash Flow & Free Cash Flow Conversion Reconciliation

    © 2022 COLUMBUS McKINNON CORPORATION 33 Free Cash Flow & Free Cash Flow Conversion Reconciliation ($ in thousands) Fiscal Year FY 2019 FY 2020 FY 2021 FY 2022 Cash from operations $ 79,499 $ 106,795 $ 98,890 $ 48,881 Capital expenditures (12,288) (9,432) (12,300) (13,104) Free cash flow (FCF) $ 67,2

  34. Slide 34: Global organization with production facilities in the Americas, EMEA, and APAC

    © 2022 COLUMBUS McKINNON CORPORATION 34 Global organization with production facilities in the Americas, EMEA, and APAC Global Enterprise Kunzelsau, DE Hoist Milwaukee, WI Power Control Conveying Solutions Wadesboro, NC Hoist Damascus, VA Hoist Charlotte, NC Actuator Mexico Hoists Conveying Solutions

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