Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — The Manitowoc Company — Investor Day (November 2016)
83 slides from Manitowoc Company, Inc. (the)'s investor day presentation, Nov 10, 2016
Slide 1: The Manitowoc Company, Inc. Investor Day
The Manitowoc Company, Inc. INVESTOR DAY NOVEMBER 10, 2016
Slide 2: Safe Harbor Statement
Safe Harbor Statement Any statements contained in this presentation that are not historical facts are “forward- looking statements.” These statements are based on the current expectations of the management of the company, only speak as of the date on which they are made, and are subject to uncertain
Slide 3: Agenda
Agenda 8:00 AM Welcome and Introduction Ion Warner 8:05 AM Opening Remarks Barry Pennypacker Our Business Strategic Priorities The Manitowoc Way Jeff Langer Mobiles Update Aaron Ravenscroft Towers Update Larry Weyers Market Insight – Middle East David Semple Financial Overview Dave Antoniuk Question
Slide 4: Barry Pennypacker President & Chief Executive Officer
Barry Pennypacker President & Chief Executive Officer INVESTOR DAY NOVEMBER 10, 2016 4
Slide 5: Investment Highlights
Investment Highlights Leading Global Crane Manufacturer with industry-leading innovations New, Operationally-Focused Team Driving Results Executing on strategic priorities to improve margins, earnings, and cash flow Geographically diverse customer and end market base Unique aftermarket support drive
Slide 6: MTW Summary
MTW Summary • Global leader in lifting equipment • Serve wide range of end markets • Broadest product and service offering • Innovation leader • Global channel and reach • Aftermarket solutions • Financing solutions Leading crane manufacturer INVESTOR DAY NOVEMBER 10, 2016 6
Slide 7: Leading Global Crane Company with Well-Known Brands
Leading Global Crane Company with Well-Known Brands Industrial All Terrain Rough Terrain Boom Truck Lattice Boom Telecrawler Top Slewing Crawler Tower Government Municipal Top Slewing Tower Self Erecting Truck Mounted Tower INVESTOR DAY NOVEMBER 10, 2016 7
Slide 8: …and Aftermarket & Solutions
…and Aftermarket & Solutions Aftermarket Parts Skills Training Fleet Management/ and Service Diagnostics (Tower) Financing Rebuild/Refurbish Special Applications INVESTOR DAY NOVEMBER 10, 2016 8
Slide 9: Diversified End Markets and Global
Diversified End Markets and Global End Markets 1 Infrastructure Growth Drivers 17% Industrial / Petrochemical Residential 35% • Leading brands and products 5% • Strong distribution channels globally • Products for wide range of end markets Commercial • Large installed base 25% Power / Utilities • Af
Slide 10: Situational Analysis -- Mobiles
Situational Analysis -- Mobiles Summary • Uncertainty on industry trough • Depressed energy markets • Infrastructure investments • Lower resale values • Lower rental rates • Lower utilization rates Persistently weak market conditions; Looking for signs of stabilization INVESTOR DAY NOVEMBER 10, 2016
Slide 11: Situational Analysis -- Towers
Situational Analysis -- Towers Summary • Residential and Commercial market recovery • Stable resale values • Flat rental rates • Strengthening utilization rates in Europe and North America, declining in Latin America and Middle East Global leader in tower cranes INVESTOR DAY NOVEMBER 10, 2016 11
Slide 12: Four Strategic Priorities
Four Strategic Priorities Strategic Priorities 2016 Status • Optimize Global Capacity • Relocating 3 plants • Increase Manufacturing Agility (Passo Fundo, MTW, Fanzeres) Margin Expansion • Improve Productivity • Restructuring Down 1,400 • Reduce Material Cost employees (22%) • Renew Focus on Quali
Slide 13: The Manitowoc Way
The Manitowoc Way The Manitowoc Way will be the foundation of organic initiatives to enhance our growth profile, expand margins INVESTOR DAY NOVEMBER 10, 2016 13
Slide 14: Jeff Langer Vice President, The Manitowoc Way
Jeff Langer Vice President, The Manitowoc Way INVESTOR DAY NOVEMBER 10, 2016 14
Slide 15: The Manitowoc Way – Strategy Lean
The Manitowoc Way – Strategy Lean Current State Corporate Strategic Strategic Plan Identify Critical Value Stream Kaizen Future State Objectives (CSO) (STRAP) Value Streams Mapping (VSM) Schedule Action Plan • Tracked by • Identify • Prioritize • Material & Info Priority Opportunities Based on Flow
Slide 16: The Manitowoc Way – 2016 Implementation Plan
The Manitowoc Way – 2016 Implementation Plan • Each Facility will appoint a dedicated Manitowoc Way champion • Executive Staff members will participate in two Major Kaizen activities per year • Develop The Manitowoc Way portal site Publish the Kaizen schedules for each facility Training document
Slide 17: The Manitowoc Way In Action – Site Leaders
The Manitowoc Way In Action – Site Leaders Dave Sawyer Mobile – SG, USA Lionel Vroman – Charlieu, Manuel Castro – Baltar, Bertrand Depale – Moulins, Diego Marabotto – Niella, Chunyu Ma - APAC Matthias Dreier Mobile – WHV, Germany The Towers Team An experienced team with over 75 years of service INVE
Slide 18: The Manitowoc Way In Action – Training Summits
The Manitowoc Way In Action – Training Summits Shady Grove, PA June 7-9 29 Participants Niella, Italy September 14-16 44 Participants * Not Pictured: Shady Grove, PA August Wilhelmshaven, Germany September 19-21 16-18 33 Participants 25 Participants INVESTOR DAY NOVEMBER 10, 2016 18
Slide 19: The Manitowoc Way In Action – Shady Grove
The Manitowoc Way In Action – Shady Grove Final 1 Assembly Building April 2016 Work Scope included final assembly of National Boom Trucks (West side) and the Industrial products (East side) National Industrial Crane Crane INVESTOR DAY NOVEMBER 10, 2016 19
Slide 20: The Manitowoc Way In Action – Shady Grove
The Manitowoc Way In Action – Shady Grove Final 4 Assembly Building May 2016 Relocated the Industrial products final assembly INVESTOR DAY NOVEMBER 10, 2016 20
Slide 21: The Manitowoc Way In Action – Shady Grove
The Manitowoc Way In Action – Shady Grove Final 2 Assembly Building April 2016 Final 1 Assembly Building May 2016 TM final assembly with 8 work Stations Consolidated the TM final assembly from 8 to 4 work stations and relocated it from F2 to F1 Assembly line moves freed up approximately 24,000 sq ft
Slide 22: The Manitowoc Way In Action – Wilhelmshaven, Germany
The Manitowoc Way In Action – Wilhelmshaven, Germany Hall 9, Paint shop improvements Hall 13, Boom Assembly Before After INVESTOR DAY NOVEMBER 10, 2016 22
Slide 23: Aaron Ravenscroft Executive Vice President, Mobiles
Aaron Ravenscroft Executive Vice President, Mobiles INVESTOR DAY NOVEMBER 10, 2016 23
Slide 24: Mobile Cranes: Overview
Mobile Cranes: Overview All-Terrain Truck-Mounted Crawler Boom Truck Carrydeck Rough-Terrain INVESTOR DAY NOVEMBER 10, 2016 24
Slide 25: Mobile Cranes: Products
Mobile Cranes: Products Large Crawlers 300t - 2500t Small Crawlers 80t - 299t All-Terrain 50t - 450t Rough-Terrain 30t - 135t Truck-Mounted 40t - 90t Boom Truck 7.3t - 60t Industrials 7.7t - 22t 1 10 100 1000 *Capacity in tons Broad product offering to meet most lifting needs INVESTOR DAY NOVEMBER 1
Slide 26: Mobile Cranes: Lift Solutions
Mobile Cranes: Lift Solutions External generators Track Units Hitches Personnel baskets Ringers Boom extensions, Barge attachments, Boom Dollies Applications & inserts INVESTOR DAY NOVEMBER 10, 2016 26
Slide 27: Mobile Cranes: Manufacturing
Mobile Cranes: Manufacturing Shady Grove, Pennsylvania Wilhelmshaven, Germany • Founded 1947 • Founded 1946 • 300+ acres • 50+ acres • 1.3 million square feet • 410,000 square feet • Manufacture rough-terrain, • Manufacture all-terrain cranes truck-mounted, boom trucks, industrials, and crawler cran
Slide 28: Mobile Cranes: Market
Mobile Cranes: Market Europe • Germany & France stable • UK stable • Southern EU: slight recovery North America • Weak demand, lower Middle East rental rates, lower • KSA: liquidity crisis/ utilization rates Other conflicts • Region: Geopolitical instability Africa APAC • Flat to declining demand •
Slide 29: Mobile Strategy
Mobile Strategy Strategic Priorities • Optimize Manufacturing footprint 1. Margin • Increase Manufacturing Agility Expansion • Reduce Material cost • Sales Channel Expansion 2. Growth • Aftermarket growth and expansion • Increase Market share via new products • Accelerate New Product Development 3.
Slide 30: Mobile Cranes: Margin Expansion
Mobile Cranes: Margin Expansion Crawler plant relocation • Intent to relocate from Manitowoc, WI to Shady Grove, PA • Annualized pre-tax cost savings: $25-30M • Completion: year end 2016 • Cash outflows: $35-50M • Non-cash charges: • Cross-functional task force Approx. $95-100M in place to implement
Slide 31: Mobile Cranes: Margin Expansion
Mobile Cranes: Margin Expansion Boom manufacturing & flow • EUR14M investment • Investment in welding & machining - Q4 2016 • Modernized paint facility - 2017 • Boom assembly - kaizen INVESTOR DAY NOVEMBER 10, 2016 31
Slide 32: Mobile Cranes: Growth
Mobile Cranes: Growth Military GMK4060HC • $192M/5 years; total $270M with 2-year option exercised • 3 Prototypes completed in Q3 2016 • Government testing starts Nov. 2016 • First production shipments Q4 2017 • Yearly production of 20 units starting 2018 • Long-term aftermarket parts revenue AT422T
Slide 33: Mobile Cranes: Growth Sales channel development
Mobile Cranes: Growth Sales channel development • Dealer Meetings • Dealer scorecards • Benchmarking • Elite status program Driving Accountability INVESTOR DAY NOVEMBER 10, 2016 33
Slide 34: Mobile Cranes: Innovation New Product Initiatives
Mobile Cranes: Innovation New Product Initiatives • “Taxi” strategy • Class-leading load charts • Crane Control System (CCS) GMK5150/5150L • MEGATRAK suspension system • Better maneuverability and fuel economy with VIAB GMK4100L-1 turbo clutch and integrated retarder GMK5250L • Meets global roading
Slide 35: Mobile Cranes: Innovation New Product Initiatives
Mobile Cranes: Innovation New Product Initiatives • Global product strategy • Greater capacity than competitors – up to 27% • Full-power booms & best-in- GRT8100 class line pulls • Crane Control System (CCS) • Broad jib options; new stowage systems GRT880 “New” Models New Products Drive Market Share
Slide 36: Mobile Cranes: Velocity IPD process
Mobile Cranes: Velocity IPD process – New mobile crane • Designated team of 10 • Streamlined IPD process • VOC – 3 crane operators involved in process • Goal: class-leading capacity, boom, and load charts • Launch: ConExpo 2017 The Team is Accountable & Responsible INVESTOR DAY NOVEMBER 10, 2016 36
Slide 37: Mobile Cranes: Velocity The Manitowoc Way
Mobile Cranes: Velocity The Manitowoc Way • Dedicated Manitowoc Way leaders appointed at each facility • Executive Staff members will participate in two Major Kaizen activities per year • The Manitowoc Way portal site The Team is Accountable & Responsible INVESTOR DAY NOVEMBER 10, 2016 37
Slide 38: Larry Weyers Executive Vice President, Towers
Larry Weyers Executive Vice President, Towers INVESTOR DAY NOVEMBER 10, 2016 38
Slide 39: Tower Cranes: Overview
Tower Cranes: Overview Self-erecting Top slewing MD/MC Hup MDT/MCT Igo/Igo M/Igo T MR MCR INVESTOR DAY NOVEMBER 10, 2016 39
Slide 40: Tower Cranes: Overview
Tower Cranes: Overview MD Maxi/Topbelt 50t - 80t MD CCS 20t - 40t MR 8t - 32t MDT CCS 6t - 16t MC/MCT/MCR 2.5t - 20t Igo/Hup 1.3t - 8t 1 *Capacity in tons 10 100 Two Product Offerings - Economy and Premium INVESTOR DAY NOVEMBER 10, 2016 40
Slide 41: …with Special Applications
…with Special Applications Dam and bridge construction Internal climbing Anchorages Broad product offering for a variety of applications INVESTOR DAY NOVEMBER 10, 2016 41
Slide 42: Tower Cranes: Manufacturing
Tower Cranes: Manufacturing Charlieu, France Moulins, France Niella Tanaro, Italy • 323,000 square feet • 370,000 square feet • 258,000 square feet • Large self erecting cranes • Large MD Top slewing cranes • All small self erecting cranes • Hoist and mechanism feeder plant • Large MDT topless tower
Slide 43: Tower Cranes: Market
Tower Cranes: Market Europe • Germany, France: growing and increasing market share with CCS intro • Central Europe: slight growth Middle East • CIS: activity recovering but • GCC: slowing down due financing remains difficult to lack of financing • Other: Declining demand APAC Americas • China: depre
Slide 44: Tower Strategy
Tower Strategy Strategic Priorities • Optimize Manufacturing footprint 1. Margin • Increase Manufacturing Agility Expansion • Product line rationalization • Increase Market share via new products • Aftermarket growth and expansion 2. Growth • Used and Crane Rental business • Sales Channel Expansion
Slide 45: Tower Cranes: Margin Expansion
Tower Cranes: Margin Expansion Fanzeres plant closure • Close Fanzeres, Portugal plant consolidate into Baltar, Portugal facility • Transition began Q3 2016 Ability to build more cranes in a smaller • Relocation complete Q2 2017 footprint at a lower cost • The Manitowoc Way Fanzeres Portugal Baltar
Slide 46: Tower Cranes: Margin Expansion
Tower Cranes: Margin Expansion Igo26 Igo30 Igo32 Igo36 Igo42 Igo50 6 to 2 models HUP 32-27 HUP 40-30 Q3 2016 Shipments Q4 2016 Shipments Product line consolidation drives margin improvement INVESTOR DAY NOVEMBER 10, 2016 46
Slide 47: Tower Cranes: Margin Expansion
Tower Cranes: Margin Expansion Advanced manufacturing Niella Tanaro, Italy - Transformation Complete • Optimized material flow - improved VA:NVA ratio • Modernized paint line w/ auto load system • Higher productivity with less manpower • 80% of chassis welding by robot • Improved Safety INVESTOR DAY
Slide 48: Tower Cranes: Growth
Tower Cranes: Growth • Leverage engineering costs on first model across a new range • Steady flow of new product development • Product rationalization 2017 2018 2019 2020 2021 NPD 7 3 9 8 6 Expand market share through New Product Development INVESTOR DAY NOVEMBER 10, 2016 48
Slide 49: Tower Cranes: Growth Aftermarket Growth
Tower Cranes: Growth Aftermarket Growth • Complete value added support model including crane erection, tie-off engineering, transport and anchorage design. • Improvement of velocity and capability in service network via CraneStar DIAG and CCS. Diagnose the issue without sending a service technician
Slide 50: Tower Cranes: Growth Used crane business
Tower Cranes: Growth Used crane business BEFORE • Reorganize resources to promote double digit growth • Proactive purchasing • Unique market positioning AFTER Leverage EnCORE operations & partners Optimize global sales network Strengthen warranty Tool to enter emerging markets Energize secon
Slide 51: Tower Cranes: Innovation
Tower Cranes: Innovation Integrated Solution for Operator Lift Requirement Cablift • New regulations in France to require operator lift for all tower cranes erected above 98 ft high • Patent pending integrated crane driver lift • Replacing current access features (ladders and platforms) • Used for T
Slide 52: Tower Cranes: Velocity Lean implementation
Tower Cranes: Velocity Lean implementation • Dedicated Manitowoc Way leaders appointed at each facility • Executive Staff members will participate in two Major Kaizen activities per year • The Manitowoc Way portal site The Manitowoc Way – The foundation of our culture INVESTOR DAY NOVEMBER 10, 2016
Slide 53: David Semple Vice President, Sales – Middle East and Asia Pacific
David Semple Vice President, Sales – Middle East and Asia Pacific INVESTOR DAY NOVEMBER 10, 2016 53
Slide 54: Middle East
Middle East INVESTOR DAY NOVEMBER 10, 2016 54
Slide 55: Middle East: Background countries
Middle East: Background 20 countries Approx 600M people Ethnically diverse Arabs Turks Persians Indo-Persians INVESTOR DAY NOVEMBER 10, 2016 55
Slide 56: Middle East: Background
Middle East: Background Cost to produce 1 barrel of oil Extraction costs of oil from the Middle- East : 1/5 of the current oil price… $10 $20 $30 $40 $50 Source: UCube by Rystad Energy; INVESTOR DAY Interactive published Nov. 23, 2015 56 NOVEMBER 10, 2016
Slide 57: Middle East: Background
Middle East: Background Yearly income potential from Oil & Gas (assuming $50/b for oil and $3/mBTU for gas) SAUDI ARABIA * * Saudi Arabia, IRAN UAE, Kuwait, Qatar, UAE * Iraq: IRAQ * Total yearly O&G KUWAIT * income QATAR * ~$450B OMAN income from Gas (Bn$/y) EGYPT income from Oil (Bn$/y) Less costs
Slide 58: Negative Impact on our business
Negative Impact on our business Middle East: Political Instability Peak impact late 2012 ISIS in parts of Iraq Summer 2014 Arab Spring Saudi / Iran Egypt, relationship ? Bahrain, Turkey Yemen, Gezi Park protests Syria, Summer 2013 Saudi war in Yemen Q1-2015 Dealing with « structural instability » 20
Slide 59: Middle East: Manitowoc
Middle East: Manitowoc • Grove, Potain, & Manitowoc brands popular since the 1960s • 2007: Opened in Jebel Ali Free Zone, Dubai • 35 employees, ~ $200M of business in the region INVESTOR DAY NOVEMBER 10, 2016 59
Slide 60: Middle East: Manitowoc
Middle East: Manitowoc • Nearly 5,000 cranes supplied over the last 15 years • Step-change in the early 2000s: Real estate & infrastructure in addition to oil & gas • Drop in 2016: Reduction in spending budgets as a reflection of oil prices and regional conflicts INVESTOR DAY NOVEMBER 10, 2016 60
Slide 61: Middle East: Long-Term
Middle East: Long-Term INVESTOR DAY NOVEMBER 10, 2016 61
Slide 62: Middle East: Thank you !
Middle East: Thank you ! INVESTOR DAY NOVEMBER 10, 2016 62
Slide 63: Dave Antoniuk Senior Vice President & Chief Financial Officer
Dave Antoniuk Senior Vice President & Chief Financial Officer INVESTOR DAY NOVEMBER 10, 2016 63
Slide 64: Finance Overview
Finance Overview New Operationally-Focused Leadership Team Driving Transformation Ability to manage the cycle… contingency planning Margin expansion commitment… “The Manitowoc Way” Laser focus on cash… Disciplined working capital management Role of Finance… Business partner, transparency, co
Slide 65: Cyclicality of The Business
$500 $- $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 1st Qtr-03 2nd Qtr-03 3rd Qtr-03 4th Qtr-03 1st Qtr-04 2nd Qtr-04 3rd Qtr-04 4th Qtr-04 1st Qtr-05 2nd Qtr-05 3rd Qtr-05 4th Qtr-05 1st Qtr-06 2nd Qtr-06 3rd Qtr-06 4th Qtr-06 1st Qtr-07 2nd Qtr-07 3rd Qtr-07 4th Qtr-07 1st Qtr-08 2nd Qtr-08 Orders 3
Slide 66: The Manitowoc Way
Reinvigorated Operational Focus The Manitowoc Way Margin Expansion Velocity Growth Innovation ↓ 1,400 Relocate Lean Next generation $270M U.S. Hup 40-30, Employees, 3 plants transformations crane; intro at Army GMK5250L, 22% in U.S., ConExpo 2017 Contract GMK4100L-1, reduction Germany, Italy GRT8100
Slide 67: Adjusted EBITDA from Continuing Operations Summary
Adjusted EBITDA from Continuing Operations Summary $30 ($ Millions) Y/Y Y/Y Flat 7.0% +370 bps $25 bps 6.0% Y/Y +160 5.0% $20 bps 4.0% $15 3.0% $10 2.0% $5 1.0% $- 0.0% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016* EBITDA EBITDA/ Rev * Excluding unusual items Maintaining Positive Adjusted
Slide 68: Inventory Management & Capital Deployment
Inventory Management & Capital Deployment $700 ($ Millions) $60M $600 Q4’16 reduction $500 $400 $300 $200 $100 $- Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016 2016 2016 2016 2015 Capital Expenditures $45 $54 Depreciation $46 $51 Reinvestment Ratio
Slide 69: Liquidity Summary
Liquidity Summary Capital Summary 3Q 2016 Liquidity Summary 3Q 2016 ($ in Millions) ($ in Millions) Available Gross at 9/30 Short-Term Debt $ 15.3 Cash & Cash Equivalents $ 42.9 $ 42.9 Long-Term Debt 293.0 2021 Notes 249.2 - Total Debt 308.3 ABL Revolver 225.0 145.6 Total Shareholder's Equity 623.5
Slide 70: Internal Long-Term Financial Goals
Internal Long-Term Financial Goals Financial Metrics 2015 2016 5-Year Target Revenue $1.9B ~$1.6B $1.8- $2.0B Adjusted Operating Margin 0.6% ~ (1)-(2) % 10% Assumes Normalized Market Growth Continued Margin Expansion… The Manitowoc Way >100% Cash Conversion… Utilize Tax NOL’s “10 x 20” INVESTO
Slide 71: Questions & Answers
Questions & Answers INVESTOR DAY NOVEMBER 10, 2016 71
Slide 72: Les Middleton Senior Vice President, The Americas
Les Middleton Senior Vice President, The Americas INVESTOR DAY NOVEMBER 10, 2016 72
Slide 73: Facility safety guidelines
Facility safety guidelines • Safety is our #1 priority • Please stay with your tour group at all times • Please keep your safety glasses and hi-vis vests on at all times • Stay within the designated aisle ways and with your designated tour guide • Please do not handle parts • If an alarm sounds, sta
Slide 74: Shady Grove Tour Route
Shady Grove Tour Route CRAWLER BOOM MFG. FACTORY PVC INDUSTRIALS CRAWLER PAINT TEST CRANE SHOP ASSY. PROD TEST Lot 7 MDT 219 DEMO MUSEUM Future Site Lattice TOWER TRUCK crane Assembly Demo MOD SUB cranes COMPONENT LWF NCC BUILD ASSY. PLATE SHOP G&L STORE SWF R&D PLANT MAINTENANCE Main MAIN AdminOFFI
Slide 75: Appendix: Additional Materials and Financials
Appendix: Additional Materials and Financials INVESTOR DAY NOVEMBER 10, 2016
Slide 76: Manitowoc: Large Installed Base
Manitowoc: Large Installed Base Extensive installed base across diverse geographies provides recurring service and replacement parts revenue opportunities Category Leading Brands Active Installed Base1 Average Fleet Replacement2 Mobile Telescopic Cranes ~55,000 7-9 years Tower Self-Erecting: 6-8 yea
Slide 77: Diversified by Region, End Market and Product
Diversified by Region, End Market and Product Balanced Sales Footprint and Customer Segments We Serve 2015 2015 2015 Overall 2016 YTD Geographic Exposure End Market Exposure1 Customer Mix2 Revenue by Product3 Infrastructure 17% Industrial / Petrochemical Rental Contractor 35% 17% 13% Residential Oth
Slide 78: Financial & Other Key Metrics
Financial & Other Key Metrics Q3 2016 Q3 2015 YoY ∆ Q2 2016 QoQ ∆ Orders $ 309.9 $ 338.2 (8.4)% $ 348.9 (11.2)% Net sales $ 349.8 $ 438.2 (20.2)% $ 457.7 (23.6)% Operating (loss) income $ (133.5) $ (8.2) n/m $ 4.8 n/m Non-GAAP adjusted operating (loss) income $ (31.5) $ (7.7) n/m $ 14.8 n/m Net (los
Slide 79: GAAP Reconciliation Summary
GAAP Reconciliation Summary INVESTOR DAY NOVEMBER 10, 2016 79
Slide 80: Historical Revenue and EBITDA
Historical Revenue and EBITDA (US$ in millions) Cranes generates significant revenue and EBITDA during cyclical upturns During industry downturns, predictable replacement demand and differentiated product offerings support demand Restructuring initiatives in progress Revenue EBITDA & Margin $3
Slide 81: Historical Capital Needs & Cash Flow
Historical Capital Needs & Cash Flow (US$ in millions) Moderate capital intensity and working capital requirements allow earnings to largely flow to cash flow Working capital needs decrease when revenue declines, providing a strong cash flow offset during industry downturns Free cash flow¹ gen
Slide 82: EBITDA and Free Cash Flow Reconciliation
EBITDA and Free Cash Flow Reconciliation (US$ in millions) 2010 2011 2012 2013 2014 2015 Earnings (Loss) from Operations 1 $ 94 $ 119 $ 171 $ 219 $ 164 $ 64 Depreciation 55 53 44 47 46 47 EBITDA $ 149 $ 172 $ 214 $ 266 $ 210 $ 110 Capital Expenditures (21) (52) (53) (69) (57) (52) Free Cash Flow $ 1
Slide 83: Investor Day November 10, 2016
INVESTOR DAY NOVEMBER 10, 2016 83