Lindsay Corporation · NYSE:LNN
Lindsay — Investor Presentation (July 2018)
34 slides from Lindsay's investor presentation, Jul 6, 2018
Slide 1: Investor Presentation – July 2018
Investor Presentation – July 2018 ADVANCING INNOVATION TO SOLVE GLOBAL CHALLENGES EXHIBIT 99.1
Slide 2: Safe-Harbor Statement
Safe-Harbor Statement This presentation contains forward-looking statements that are subject to risks and uncertainties and which reflect management’s current beliefs and estimates of future economic circumstances, industry conditions, Company performance, financial results and planned financing. Yo
Slide 3: Global Leader in Differentiated Market Solutions
Global Leader in Differentiated Market Solutions Custom turnkey irrigation solutions delivered to over 90 countries Global Provider of Road Safety Solutions Award-winning industry-leading technology
Slide 4: Providing Innovative Solutions for an Increasing Global Population
Providing Innovative Solutions for an Increasing Global Population Irrigation Infrastructure
Slide 5: Long-Term Market Drivers
Long-Term Market Drivers Water Conservation Alternative Fuels Increase Yields Improve Road Safety Population Growth Advancing Technology
Slide 6: Five Year Financial Overview
Five Year Financial Overview Revenue ($in millions) Operating Margin (%) ($ in millions, except per share amounts) FY13 FY14 FY15 FY16 FY17 Revenue $690.8 $617.9 $560.2 $516.4 $518.0 Gross Profit $194.8 $171.0 $156.3 $148.6 $145.0 Gross Margin 28.2% 27.7% 27.9% 28.8% 28.0% Operating Income $107.0 $7
Slide 7: Foundation for Growth Initiative – 2020 Objectives
Foundation for Growth Initiative – 2020 Objectives Financial Performance 11% to 12% operating margin Shareholder Value Creation External perception Fully leverage the global organization Viewed by customers as the innovation leader in core markets Culture and Health Highly engaged employees One comm
Slide 8: Foundation for Growth Workstreams
Foundation for Growth Workstreams Strategic choices 6 Culture change & operating model 5 Culture assessment, aligning behaviors to strategy, improving global work processes Set strategic direction, portfolio assessment Commercial 1 Manufacturing 3 Sourcing 2 G&A Expense 4 Create value through channe
Slide 9: Third Quarter Foundation for Growth Progress
Third Quarter Foundation for Growth Progress Announced divestiture plan Watertronics – pump systems Lakos – filtration systems Irrigation Specialists – Irrigation dealership Consolidation of manufacturing facilities Announced plan to close Omaha, NE infrastructure facility Consolidate activity into
Slide 10: Third Quarter Fiscal 2018 Highlights
Third Quarter Fiscal 2018 Highlights Irrigation revenues increased 7% Infrastructure revenues increased 31% Adj. Irrigation operating margin increased 9% Adj. Infrastructure operating margin increased 80% *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share
Slide 11: Third Quarter and YTD Financial Summary
Third Quarter and YTD Financial Summary *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of presentation.
Slide 12: Irrigation Segment – Third Quarter Results
Irrigation Segment – Third Quarter Results Increase in irrigation system unit volume Higher average selling prices North America revenues increased 11% Higher project activity in developing markets Market slowdown in Brazil International revenues decreased 1% to $41.0 M *Please see Reg G reconciliat
Slide 13: Infrastructure Segment – Third Quarter Results
Infrastructure Segment – Third Quarter Results Initiated production during the third quarter Expected to begin delivery in Q1 2019 Delivery of a significant portion of two large Road Zipper System® orders Alex Fraser Bridge Japan Improved margin mix due to higher Road Zipper revenue Improved operati
Slide 14: Irrigation
Jf, Arzalion
Slide 15: Global Leader in a Large Addressable Market - $5.0B (est.)
Global Leader in a Large Addressable Market - $5.0B (est.) Mgmt. estimate
Slide 16: North American Market Drivers
North American Market Drivers 2013 (55 Million Acres) 14% of Cropland Pivots/Laterals Gravity Flow Other Sprinkler Drip/Micro 2008 (55 Million Acres) 14% of Cropland 1998 (54 Million Acres) 12% of Cropland 2003 (53 Million Acres) 12% of Cropland *1998, 2003, 2008 & 2013 Farm and Ranch Irrigation Sur
Slide 17: Irrigation in the U.S.
Irrigation in the U.S. U.S. Irrigated Cropland: Acres Irrigated as Percentage of Land in Farm Acreage 2012 Western States 20% of Cropland Irrigated Eastern States 8% of Cropland Irrigated U.S. Irrigated Cropland: Acres Irrigated as Percentage of Land in Farm Acreage: 2012
Slide 18: Large International Market Opportunity
Large International Market Opportunity *FAO AQUASTAT, 2013
Slide 19: Aftermarket sales opportunities
Aftermarket sales opportunities Replacement part sales Penetrate installed base with FieldNET® conversions and controls High-to-low pressure retrofits Global Replacement and Conversion Opportunities Conversion Installed base of 260,000+ irrigation systems in North America Replacement
Slide 20: Integrated Value-Added Technology and Turnkey Solutions
Integrated Value-Added Technology and Turnkey Solutions Lindsay is a single-source provider of custom turnkey solutions Irrigation Segment Revenues $ in millions
Slide 21: Unmatched in Delivering Differentiated Solutions
Unmatched in Delivering Differentiated Solutions Industry’s only unified remote monitoring and control platform integrating pivots, laterals, drip and pumping stations Industry’s only fully integrated variable rate irrigation (VRI) solution with GPS control of individual sprinklers Full line of inte
Slide 22: FieldNET Advisor™: The Smartest Irrigation Solution
FieldNET Advisor™: The Smartest Irrigation Solution Helps growers make faster, better-informed decisions using trusted crop and irrigation science and patented and proprietary technologies Leverages a massive amount of data that was previously difficult to manage Seamlessly integrates into the prove
Slide 23: FieldNET Advisor™: Compelling Global Impact
FieldNET Advisor™: Compelling Global Impact Lindsay delivers technology that, by 2022, is expected to help growers save:
Slide 24: Award-Winning Innovation
2014 Irrigation Association Best New Product in Agriculture 2014 World Ag Expo Top 10 New Product 2015 American Society of Agricultural and Biological Engineers AE50 Outstanding Innovation Award 2018 American Society of Agricultural and Biological Engineers AE50 2018 American Society of Agricultural
Slide 25: Infrastructure
Gr Infrastructure Investor Presentation 25
Slide 26: Congestion / Safety – are increasing concerns globally
Congestion / Safety – are increasing concerns globally Traffic congestion costs urban areas $160 billion annually 6.9 billion lost hours in traffic 3.1 billion gallons of fuel wasted
Slide 27: Delivering Infrastructure Solutions through Innovation
Road Zipper Systems deliver innovative moveable barrier technology for construction, managed lanes, bridges, tunnels MAX-Tension end terminals provide next level impact performance, ultra-slim design Snoline offers a comprehensive suite of road safety products and specialty systems Delivering Infras
Slide 28: Road Zipper Systems Provide Innovative Solution
Road Zipper Systems Provide Innovative Solution Global Expansion 200+ Road Zipper system projects have been completed 200 miles of barrier and a global fleet of dedicated and leased Road Zippers in use 30+ miles of Lindsay-owned barrier available for lease globally Lindsay-owned Road Zippers availab
Slide 29: Summary Balance Sheet
Ps Summary Balance Sheet Cash and cash equivalents $111.8 $113.2 Current assets $350.4 $305.4 Current liabilities $98.7 $103.0 Net working capital* $25107 $202.4 Long-term debt $116.8 $117.0 Shareholders' equity $277.5 $263.7 ‘The net working capital amount at May 31, 2018 includes $27.4 milion vihi
Slide 30: Summary of Cash Flow
Ps Summary of Cash Flow Net eamings $15.3 $16.8 Depreciation / amortization $12.9 $12.3 Changes in assets and liabilities: Receivables ($29.8) ($5.7) Inventories ($8.2) ($13.2) Other working capital $11.8 $13.0 Other $6.3 $1.2 Net cash provided by operations $8.2 $24.5 Purchases of property, plant a
Slide 31: Capital Allocation – A Balanced Approach
Capital Allocation – A Balanced Approach Allocation History (1) Includes marketable securities that were not included in the cash and cash equivalents balance on 8/31/07. (2) Other includes debt repayments, net cash sources/uses from note receivables, net investment hedges, stock compensation and re
Slide 32: Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures
Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) The non-GAAP tables below disclose (a) the impact on diluted earnings per share of (1) tax expense attributed to enactment of the
Slide 33: Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures (Continued)
Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Continued)
Slide 34: Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures (Continued)
Regulation G Reconciliation of GAAP to NON-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Continued)