Lindsay Corporation · NYSE:LNN
Lindsay — Investor Presentation (January 2019)
29 slides from Lindsay's investor presentation, Jan 18, 2019
Slide 1: Investor Presentation January 2019
Investor Presentation January 2019 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: The Lindsay Story: We are Transforming Lindsay
THE LINDSAY STORY We are Transforming Lindsay… Irrigation and infrastructure products From: A cyclical manufacturer
Slide 4: The Lindsay Story: To an Innovative Market Leader
THE LINDSAY STORY …To an Innovative Market Leader Driven by a new culture and technological innovation Higher margin Innovative Leverage Less cyclical
Slide 5: The New Lindsay Corporation
THE NEW LINDSAY CORPORATION Driving Margin Expansion and Growth through Technology Differentiation 1 2 3 STRONG PLATFORMS Executing NEW STRATEGY CLEAR PRIORITIES / GOALS
Slide 6: Lindsay Corporation at a Glance
Revenues Operating margin* Lindsay Corporation at a Glance Key Metrics (FY18) Lindsay Revenue Mix (Fiscal 2018) U.S. Irrigation International Irrigation Infrastructure ROIC* $548M 8.8% 9.0% Market cap ~$975M Free Cash Flow ~$23M *Please see Reg G reconciliation of GAAP operating income, net earnings
Slide 7: Two Strong Platforms
Two Strong Platforms INFRASTRUCTURE IRRIGATION FY18 Sales $440M Operating Margin* 10.7% FY18 Sales $108M Operating Margin* 22.9% *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of presentation.
Slide 8: Irrigation Segment: Global Leader in Mechanized Irrigation Systems
IRRIGATION SEGMENT Global Leader in Mechanized Irrigation Systems >12M irrigated acres >90 countries 6 manufacturing locations Sold through >350 exclusive dealers globally Improving Results The Business Today +5% 10.2% 10.7% Operating Margin* *Please see Reg G reconciliation of GAAP operating income
Slide 9: Irrigation Segment: Positioned in Large $5B Growing Market
IRRIGATION SEGMENT Positioned in Large $5B Growing Market Large Market Key Growth Drivers Served Market $1.0B Total Addressable $5.0B $0.4B Global food security Water use efficiency Climate change Growth in agricultural technology adoption Farm income 2018 Sales
Slide 10: Irrigation Segment: Top Player Globally with Strong Competitive Advantages
Leading technologies – FieldNET™ and FieldNET Advisor™ Global manufacturing footprint Highly efficient irrigation solutions IRRIGATION SEGMENT A Top Player Globally with Strong Competitive Advantages Compelling Advantages Leading Players Valmont Lindsay Reinke T&L Alkhorayef/Pierce Vodar Fockink Oth
Slide 11: Irrigation Segment: FieldNET Platform – A Disruptive Technology Solution
IRRIGATION SEGMENT FieldNET™ Platform – A Disruptive Technology Solution Benefits Industry’s leading unified intelligent irrigation platform ü Maximizes yield Reduces input costs Saves water Saves time Increases profits ü ü ü ü
Slide 12: Two Strong Platforms
Two Strong Platforms IRRIGATION FY18 Sales $440M INFRASTRUCTURE FY18 Sales $108M Operating Margin* 10.7% Operating Margin* 22.9% *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures at end of presentation.
Slide 13: Infrastructure Segment: Global Provider of Road Safety Solutions
INFRASTRUCTURE SEGMENT Global Provider of Road Safety Solutions Three solutions: Road Zipper System® – innovative moveable road barrier Road Safety Products – crash cushions, end treatments, attenuators, and other road safety solutions Road Marking Tape – easy to apply and fast to remove temporary r
Slide 14: Infrastructure Segment: Positioned in Large $1.8T Growing Global Market
INFRASTRUCTURE SEGMENT Positioned in Large $1.8T Growing Global Market Key Growth Drivers Population growth Congestion reduction Infrastructure development Served Market $700B Total Addressable $1.8T $100M 2018 Sales $100M Global Market
Slide 15: Infrastructure Segment: Road Zipper System – One-of-a-Kind Innovative Solution
INFRASTRUCTURE SEGMENT Road Zipper System® – One-of-a-Kind Innovative Solution Key Advantages Solving Traffic Congestion Globally ü Mitigates congestion Improves road safety Reduces pollution ü ü Creates managed lanes at a fraction of the cost of new construction Completed Road Zipper projects Purch
Slide 16: The New Lindsay Corporation
THE NEW LINDSAY CORPORATION Driving Margin Expansion and Growth through Technology Differentiation 1 2 3 STRONG PLATFORMS Executing NEW STRATEGY CLEAR PRIORITIES / GOALS
Slide 17: Improving Lindsay Corporation
Improving Lindsay Corporation Past Future Customer focus Strong Strong Culture Top down Empowered Sourcing / Shared Services Autonomous Leveraged Manufacturing By business Leveraged facilities Technology / Innovation Enabler Differentiator Margin Cyclical Stable
Slide 18: Foundation for Growth Initiative
Foundation for Growth Initiative Margin improvement Cost Strategy and Culture 2020 Goals Operating margin 11-12% Innovation leader in core markets Renewed culture and identity 1 2 3 4 5 6 Commercial Excellence Global Sourcing Manufacturing Optimization Lower G&A Expenses Cultural Changes Strategic C
Slide 19: Momentum Building Across Key Performance Metrics
Momentum Building Across Key Performance Metrics Revenues Adj. Operating Margin* Adj. Operating Income* Adj. Diluted EPS* $548M $518M 8.8% 7.8% $48M $40M $2.94 $2.17 +6% +100bps +20% +35% *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figur
Slide 20: Balance Sheet Remains Strong
Balance Sheet Remains Strong Debt to Capitalization (Fiscal 2018) Capital Allocation Priorities Organic growth initiatives Capex investments Acquisitions that leverage core capabilities Annual dividends Opportunistic share repurchase 1 2 3 4 5
Slide 21: The New Lindsay Corporation
THE NEW LINDSAY CORPORATION Driving Margin Expansion and Growth through Technology Differentiation 1 2 3 STRONG PLATFORMS Executing NEW STRATEGY CLEAR PRIORITIES / GOALS
Slide 22: Clear Strategic Priorities
Clear Strategic Priorities Execute Foundation for Growth Widen Irrigation technology leadership position Increase Road Zipper System™ market penetration 1 2 3 Supported by selective acquisitions
Slide 23: 1. Execute Foundation for Growth
1. Execute Foundation for Growth Execution is on track Recent Achievements Divested non-core businesses – Watertronics, LAKOS, SPF and Irrigation Specialists ü Expanded FieldNET Advisor to be a global platform ü Manufacturing facilities – Closed an Infrastructure facility, consolidated activity into
Slide 24: 2. Widen Irrigation Technology Leadership Position
2. Widen Irrigation Technology Leadership Position Broaden technology leadership Innovation Collaboration More countries More crops New products Strategic data partners John Deere Operations Center Farmers Edge DTN – weather data/forecasts
Slide 25: 3. Increase Road Zipper System Market Penetration
3.Increase Road Zipper System™ Market Penetration Increase leasing business Sustainable business results Shift target stakeholders from “relieving traffic congestion” to “designed into project” Innovation supporting alternate zipper configurations and applications Initiatives Road Zipper System™ mak
Slide 26: Going Forward: Long-Term Financial Targets
GOING FORWARD Long-Term Financial Targets 5-10% annually 11-16% Revenue Growth Operating Margin(1) ROIC Note (1): By 2020 10-15%
Slide 27: In Summary
IN SUMMARY Driving Margin Expansion and Growth through Technology Differentiation 1 2 3 STRONG PLATFORMS Executing NEW STRATEGY CLEAR PRIORITIES / GOALS Both segments leaders in growing markets Plan on track, momentum building Extending technology leadership, expanding margins
Slide 28: 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) income tax expense attributed to enactment
Slide 29: 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)