Lindsay Corporation · NYSE:LNN
Lindsay — Investor Presentation (November 2019)
31 slides from Lindsay's investor presentation, Nov 26, 2019
Slide 1: Investor Presentation November 2019
Exhibit 99.1 CUSTOMER-FIRST INNOVATION REAL-WORLD SOLUTIONS Investor Presentation November 2019Exhibit 99.1 CUSTOMER-FIRST INNOVATION REAL-WORLD SOLUTIONS Investor Presentation November 2019
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 Platforms Rooted in Innovation and Sustainable Solutions
Global Platforms Rooted in Innovation and Sustainable Solutions Lindsay Revenue Mix Key Statistics* (Fiscal 2019) Founded 1955 Infrastructure 21% Global Mfg. Locations 7 Countries 49% U.S. Irrigation Employees ~1,100 30% Market cap ~$1.0B International Irrigation Headquarters Omaha, NE * As of 11/6/
Slide 4: Executing Long-Term Value Creation
Executing Long-Term Value Creation • Deepening customer relationships through technology differentiation • Solutions and growth aligned to market megatrends…. designed to sustain and protect our evolving world • Foundation for Growth initiative driving margin expansion ONE LINDSAY • Empowered global
Slide 5: Financial Highlights
Financial Highlights 2019 was a year of transition and transformation FY17 FY18 FY19 • Unresolved trade issues and lower ($ in millions, except per share amounts) commodity prices negatively impacted the U.S. agricultural 1 Revenue $518.0 $547.7 $444.1 market and irrigation segment results • Impleme
Slide 6: Driving Margin Expansion and Sustainable Growth through Technology Differentiation
Driving Margin Expansion and Sustainable Growth through Technology Differentiation 1 2 3 STRONG EXECUTING CLEAR PRIORITIES / PLATFORMS NEW STRATEGY GOALS 6Driving Margin Expansion and Sustainable Growth through Technology Differentiation 1 2 3 STRONG EXECUTING CLEAR PRIORITIES / PLATFORMS NEW STRATE
Slide 7: Meeting the Needs of a Growing Global Population Through Two Strong Platforms
Meeting the Needs of a Growing Global Population Through Two Strong Platforms IR R IGATION I NF RAS T RUCT URE FY19 Revenue $351M FY19 Sales $93M Operating Margin* 9.5% Operating Margin* 18.1% *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted
Slide 8: Irrigation Segment: Global Leader in Mechanized Irrigation Systems
IRRIGATION SEGMENT Global Leader in Mechanized Irrigation Systems The Business Today Revenue and Operating Margin • >12M irrigated acres $440M • >90 countries 1 • 6 manufacturing locations $351M • Sold through >350 exclusive dealers globally 2 2 10.7% 9.5% FY18 FY19 1. Approximately $78 million of t
Slide 9: Irrigation Segment: Positioned in Large $5B Growing Market
IRRIGATION SEGMENT Positioned in Large $5B Growing Market Large Megatrends Driving Market Growth Opportunities Global food security Total Addressable $5.0B Water use efficiency Served Climate change Market $1.1B Growth in agricultural technology adoption $0.4B 2018 Farm income Sales 9IRRIGATION SEGM
Slide 10: Irrigation Segment: A Top Player Globally with Strong Competitive Advantages
IRRIGATION SEGMENT A Top Player Globally with Strong Competitive Advantages Leading Players Compelling Advantages ® Leading technologies – FieldNET ü ® Other and FieldNET Advisor Fockink 8% 1% Vodar 1% Alkhorayef/Pierce 2% Global manufacturing footprint ü 3% T&L Highly efficient irrigation solutions
Slide 11: Irrigation Segment: Global Replacement and Conversion Opportunities
IRRIGATION SEGMENT Global Replacement and Conversion Opportunities Replacement Conversion • Installed base of 280,000+ irrigation 646 Million Acres Irrigated systems in North America 3% 9% • Aftermarket sales opportunities • Replacement part sales ® • Penetrate installed base with FieldNET conversio
Slide 12: FieldNET Platform – A Disruptive Technology Solution
IRRIGATION SEGMENT ® FieldNET Platform – A Disruptive Technology Solution Industry’s leading unified intelligent irrigation platform Sustainable Benefits Maximizes yield ü Reduces input costs ü Saves water ü Saves time ü Increases profits ü 12IRRIGATION SEGMENT ® FieldNET Platform – A Disruptive Tec
Slide 13: FieldNET Advisor – Compelling Global Impact
IRRIGATION SEGMENT ® FieldNET Advisor – Compelling Global Impact Lindsay delivers technology that, by 2022, is expected to help growers save: 13IRRIGATION SEGMENT ® FieldNET Advisor – Compelling Global Impact Lindsay delivers technology that, by 2022, is expected to help growers save: 13
Slide 14: Meeting the Needs of a Growing Global Population Through Two Strong Platforms
Meeting the Needs of a Growing Global Population Through Two Strong Platforms IR R IGATION I NF RAS T RUCT URE FY19 Sales $351M FY19 Revenue $93M Operating Margin* 9.5% Operating Margin* 18.1% *Please see Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted
Slide 15: Infrastructure Segment: Global Provider of Road Safety Solutions
INFRAST RUCT URE SEGMENT Global Provider of Road Safety Solutions The Business Today Revenue and Operating Margin • Three solutions: ® − Road Zipper System – innovative $108M moveable road barrier $93M − Road Safety Products – crash cushions, end treatments, attenuators, and other road safety soluti
Slide 16: Infrastructure Segment: Positioned in Large $1.8T Growing Global Market
INFRAST RUCT URE SEGMENT Positioned in Large $1.8T Growing Global Market Megatrends Driving Global Growth Opportunities Market Total Population growth Addressable $1.8T Congestion reduction Served Market Infrastructure $0.7B development $0.1B Increasing safety standards 2018 $100M Sales 16INFRAST RU
Slide 17: Road Zipper System – One-of-a-Kind Innovative Solution
INFRAST RUCT URE SEGMENT ® Road Zipper System – One-of-a-Kind Innovative Solution Solving Traffic Congestion Globally Sustainable Advantages ® Completed Road Zipper projects 200+ Mitigates congestion ü Improves road safety Miles of barriers in use ü 200+ Reduces pollution ü Purchasing options availa
Slide 18: Driving Margin Expansion and Sustainable Growth through Technology Differentiation
Driving Margin Expansion and Sustainable Growth through Technology Differentiation 1 2 3 STRONG EXECUTING CLEAR PRIORITIES / PLATFORMS NEW STRATEGY GOALS 18Driving Margin Expansion and Sustainable Growth through Technology Differentiation 1 2 3 STRONG EXECUTING CLEAR PRIORITIES / PLATFORMS NEW STRAT
Slide 19: Foundation for Growth Initiative
Foundation for Growth Initiative Objectives • Raise operating margin floor • Innovation leader in core markets • Renewed culture and identity 1 2 3 4 Commercial Global Manufacturing Lower G&A Excellence Sourcing Optimization Expenses Cultural Changes 5 Strategic Choices 6 Margin improvement Strategy
Slide 20: Balance Sheet Remains Strong
Balance Sheet Remains Strong Summary Balance Sheet Capital Allocation Priorities (Fiscal 2019) ($ in millions) FY19 Organic growth initiatives 1 Cash and Cash Equivalents $127.2 Capex investments 2 Total Current Assets $313.5 Acquisitions that leverage core 3 Total Assets $500.3 capabilities Total C
Slide 21: Driving Margin Expansion and Sustainable Growth through Technology Differentiation
Driving Margin Expansion and Sustainable Growth through Technology Differentiation 1 2 3 STRONG EXECUTING CLEAR PRIORITIES / PLATFORMS NEW STRATEGY GOALS 21Driving Margin Expansion and Sustainable Growth through Technology Differentiation 1 2 3 STRONG EXECUTING CLEAR PRIORITIES / PLATFORMS NEW STRAT
Slide 22: Clear Strategic Priorities
Clear Strategic Priorities Execute Foundation for Growth 1 Widen Irrigation technology leadership position 2 ® Increase Road Zipper System market penetration 3 Supported by selective acquisitions 22Clear Strategic Priorities Execute Foundation for Growth 1 Widen Irrigation technology leadership posi
Slide 23: 1. Execute Foundation for Growth
1. Execute Foundation for Growth Accomplishments through Fiscal 2019 • Divested four non-core businesses ü • Closed an infrastructure facility; consolidated activity into ü an existing irrigation facility • Established a centralized shared services organization ü • Made tangible progress in culture
Slide 24: 2. Widen Irrigation Technology Leadership Position
2. Widen Irrigation Technology Leadership Position Broaden technology leadership Innovation Collaboration • Strategic data partners • More countries – John Deere Operations Center • More crops – Farmers Edge – DTN – weather data/forecasts • New products – Nutrien Ag Solutions – The Climate Corporati
Slide 25: 3. Increase Road Zipper System Market Penetration
® 3. Increase Road Zipper System Market Penetration Path toward expansion Shift Left Commercial Initiative • Permanent solution • Increase leasing business − Flexible capacity without − Sustainable business results adding a permanent lane • Shift target stakeholders − Improved commuter safety − from
Slide 26: Long-Term Financial Objectives
GOING FORWARD Long-Term Financial Objectives Revenue Operating ROIC Growth Margin 5-10% 11-16% 10-15% annually 26GOING FORWARD Long-Term Financial Objectives Revenue Operating ROIC Growth Margin 5-10% 11-16% 10-15% annually 26
Slide 27: Driving Margin Expansion and Sustainable Growth through Technology Differentiation
Driving Margin Expansion and Sustainable Growth through Technology Differentiation 1 2 3 STRONG EXECUTING CLEAR PRIORITIES / PLATFORMS NEW STRATEGY GOALS Plan on track, Extending technology Leaders in momentum building leadership, expanding margins growing markets 27Driving Margin Expansion and Sust
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) consulting fees, severance costs and loss f
Slide 29: 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) (Continued) Twelve months ended August 31, 2019 Operating income reconciliation Consolidated Irrigation Infrastructure Corporate O
Slide 30: 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 31: 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) (C ontinue d) Twelve months ended August 31, 2018 Operating income reconciliation Consolidated Irrigation Infrastructure Corporate