Kadant Inc · NYSE:KAI
Kadant — Investor Day (December 2024)
171 slides from Kadant's investor day presentation, Dec 12, 2024
Slide 1: Pioneering Industrial Solutions for a Sustainable Future – Kadant Investor Day
Pioneering Industrial Solutions for a Sustainable Future Kadant Investor Day | December 12, 2024 Exhibit 99.2
Slide 2: Forward-Looking Statements
Forward-Looking Statements The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements that involve a number of risks and uncertainties, including forward-looking statements about our future fin
Slide 3: Use of Non-GAAP Financial Measures & Company Estimates
Use of Non-GAAP Financial Measures & Company Estimates NON-GAAP FINANCIAL MEASURES In addition to the financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures, including increases or decreases in revenue excluding
Slide 4: Video: Part of Your Everyday Life
4 Video: Part of Your Everyday Life (Million Things Video) © KADANT INC. | 2024 KADANT INVESTOR DAY PIONEERING INDUSTRIAL SOLUTIONS FOR A SUSTAINABLE FUTURE
Slide 5: Kadant Investor Day 2024 – Jeffrey L. Powell
5 Pioneering Industrial Solutions for a Sustainable Future KADANT INVESTOR DAY 2024 JEFFREY L. POWELL President and Chief Executive Officer © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 6: Kadant Leadership Team & Business Leaders
Kadant Leadership Team & Business Leaders 6© KADANT INC. | 2024 KADANT INVESTOR DAY TODAY’S PRESENTERS ADDITIONAL TEAM MEMBERS JEFF POWELL President & CEO CHRIS DEMLER President Kadant Black Clawson CHAD GREENFIELD Commercial Director Syntron Material Handling WES MARTZ Vice President, Flow Control
Slide 7: About Kadant
About Kadant REVENUE $958 Adj. EBITDA* $201 EMPLOYEES ~3,500 LOCATIONS 20 countries Our products and services play an integral role in enhancing efficiency, optimizing energy utilization, and maximizing productivity in process industries while helping our customers advance their sustainability initi
Slide 8: Agenda
Agenda Kadant Business Overview Jeff Powell, President & CEO Flow Control Segment Wes Martz, Vice President, Flow Control Americas Bilal Mehmood, President, Kadant Solutions Material Handling Segment Chad Greenfield, Commercial Director, Syntron Craig Heley, President, Kadant PAAL Industrial Process
Slide 9: Kadant's DNA
Kadant’s DNA 9 • Stable business model with recurring revenue resulting from high-impact solutions and “sticky” customer relationships • Over 60% of revenue from aftermarket parts • Growing end markets driven by global macro trends • Decentralized structure, asset-light operating model • Excellent f
Slide 10: Global Platform, Local Presence
Global Platform, Local Presence 10 EMPLOYING A DECENTRALIZED OPERATING MODEL AROUND THE WORLD ASIA $114 million Rest of World $60 million NORTH AMERICA $539 million EUROPE $245 million FY 2023 revenue based on customer location. © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 11: Advantages of Geographic and Market Diversity
Advantages of Geographic and Market Diversity 11 REVENUE BY CUSTOMER LOCATION REVENUE BY END MARKET 2023 REVENUE SOURCE 47% 9% 26% 12% 6% U.S. Canada & Mexico Europe Asia ROW 36% 23% 21% 20% General Industrial Paper Wood Products Packaging © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 12: Strategic Operating Segments
Strategic Operating Segments 12 TECHNOLOGY THAT DRIVES SUSTAINABLE INDUSTRIAL PROCESSING® © KADANT INC. | 2024 KADANT INVESTOR DAY FLOW CONTROL Custom-engineered products and technologies that impact the flow of fluids. MATERIAL HANDLING Products used to handle bulk and discrete materials for second
Slide 13: Revenue by Operating Segment
Revenue by Operating Segment 13© KADANT INC. | 2024 KADANT INVESTOR DAY DIVERSIFYING OUR STRATEGIC MIX 38% 58% 4% 40% 47% 13% Flow Control Industrial Processing Material Handling 38% 37% 25% $414 million FY 2016$226 million FY 2009 $958 million FY 2023
Slide 14: Steady and Predictable Recurring Revenue
62% 38% Aftermarket Parts Capital Steady and Predictable Recurring Revenue 14 BUSINESS MODEL SUPPORTS HIGHER MARGINS AND STRONG CASH FLOW 65% 35% Aftermarket Parts Capital FY 2023 Q3 YTD 2024 © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 15: Video: Introduction to Kadant Operating Segments
15 Video: Introduction to Kadant Operating Segments © KADANT INC. | 2024 KADANT INVESTOR DAY TECHNOLOGY THAT DRIVES SUSTAINABLE INDUSTRIAL PROCESSING®
Slide 16: Video: Introduction to Kadant Operating Segments
16 Video: Introduction to Kadant Operating Segments © KADANT INC. | 2024 KADANT INVESTOR DAY TECHNOLOGY THAT DRIVES SUSTAINABLE INDUSTRIAL PROCESSING®
Slide 17: Flow Control
17© KADANT INC. | 2024 KADANT INVESTOR DAY FLOW CONTROL Accelerating profitable revenue growth via innovation, geographic expansion, and market penetration. WES MARTZ Vice President, Flow Control Americas
Slide 18: Flow Control Product Lines
Flow Control 18 PRODUCT LINES DOCTORING, CLEANING & FILTRATIONFLUID HANDLING Custom-engineered products, systems, and technologies used to enable fluid, power, and data transfer to optimize energy utilization, improve machine runnability, and enhance productivity. © KADANT INC. | 2024 KADANT INVESTO
Slide 19: Flow Control Key Attributes
Flow Control Highly diversified end markets Strong aftermarket component to business Geographic expansion opportunities with latest business additions Secular market drivers highly favorable for sustainable growth 19 KEY ATTRIBUTES © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 20: Flow Control Market Trends
Favorable market trends driving demand growth and multiple value creation levers provide a compelling story for Kadant. 20 Flow Control MARKET TRENDS © KADANT INC. | 2024 KADANT INVESTOR DAY $223 $229 $234 $240 $252 $265 $279 $293 $308 $323 $340 2020 2021 2022 2023 2024E 2025E 2026E 2027E 2028E 2029
Slide 21: Fluid Handling Product Line
21 Fluid Handling Product Line FLOW CONTROL WES MARTZ Vice President, Flow Control Americas © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 22: Primary Product Offerings
Primary Product Offerings 22 STANDARD ROTARY JOINTS CUSTOM ROTARY UNIONS PRECISION ROTARY UNIONS FLOW CONTROL FLUID HANDLING © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 23: What a Rotary Union Does
A rotary union provides the critical connection between rotating and stationary devices to allow heat transfer fluids, power, and data to flow between the two elements. 23© KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 24: Energy: Bio-Fuel
ENERGY : BIO-FUEL Kadant’s extended-life steam joint is used to evaporate moisture in the production of corn-based ethanol. This large, self-supported steam joint weighs more than one ton and can handle up to 57,000 pounds of steam per hour to effectively dry the material inside the 15-ft diameter r
Slide 25: Factory Automation: Robotics
FACTORY AUTOMATION : ROBOTICS Kadant’s rotary union with electrical slip ring is an integrated solution that allows the robot arm to retrieve and maneuver packages in this e-commerce fulfillment center while simultaneously reading the product and address information for proper sorting and handling.
Slide 26: Defense: Radar Cooling Systems
DEFENSE : RADAR COOLING SYSTEMS Engineered for sea, land, air, and space-based defense and surveillance radar systems, Kadant rotary joints deliver reliable cooling media to meet the challenges of modern radars such as active phased-array radars, active electronically scanned array (AESA) radars, an
Slide 27: Metals: Steel
METALS : STEEL Kadant’s rotary unions are used in the steel manufacturing process to ensure rolls remain cool as steel billets are formed in the continuous casting process. With few moving parts and low maintenance requirements, Kadant’s rotary union is preferred by equipment manufacturers and rebui
Slide 28: General Industry End Markets
28 GENERAL INDUSTRYPACKAGING, PAPER, TISSUE CONVERTING ENERGY DEFENSE & AEROSPACE CHEMICAL PLASTIC METALS SPECIALTY MACHINERY CONSTRUCTION TEXTILE MEDICAL FACTORY AUTOMATION MACHINE TOOL FOOD & BEVERAGE © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 29: A global leader in fluid sealing
A global leader in fluid sealing with diversified end-market exposure. INDUSTRY KADANT POSITION3 SIZE3 GROWTH3 POTENTIAL Packaging, Paper & Tissue 1 Converting 1 Energy 2 Food & Beverage 1 Defense & Aer
Slide 30: A global leader in fluid sealing
A global leader in fluid sealing with diversified end-market exposure. INDUSTRY KADANT POSITION3 SIZE3 GROWTH3 POTENTIAL Packaging, Paper & Tissue 1 Converting 1 Energy 2 Food & Beverage 1 Defense & Aer
Slide 31: Fluid Handling Innovation
DEFENSE Mine Roller Factory Automation End of Arm Tool FACTORY AUTOMATION End of Arm Tool PACKAGING Corrugated Box Plant 31 MEDICAL Image-guided Radiation Therapy Innovation FLOW CONTROL FLUID HANDLING • Alert system + remote monitoring • Simplified operator interface • Integrated control systems
Slide 32: Fluid Handling Innovation
DEFENSE Mine Roller Factory Automation End of Arm Tool FACTORY AUTOMATION End of Arm Tool PACKAGING Corrugated Box Plant 32 MEDICAL Image-guided Radiation Therapy Innovation FLOW CONTROL FLUID HANDLING • High vibration and shock • Load bearing, mounting flexibility • Increased safety and accuracy
Slide 33: Fluid Handling Innovation
DEFENSE Mine Roller Factory Automation End of Arm Tool FACTORY AUTOMATION End of Arm Tool PACKAGING Corrugated Box Plant 33 MEDICAL Image-guided Radiation Therapy • High vibration and shock • Load bearing, mounting flexibility • Increased safety and accuracy • Simplify robot vision system • Load bea
Slide 34: Fluid Handling Innovation
DEFENSE Mine Roller Factory Automation End of Arm Tool FACTORY AUTOMATION End of Arm Tool PACKAGING Corrugated Box Plant 34 MEDICAL Image-guided Radiation Therapy • High vibration and shock • Load bearing, mounting flexibility • Increased safety and accuracy • Simplify robot vision system • Load bea
Slide 35: Fluid Handling Innovation
DEFENSE Mine Roller Factory Automation End of Arm Tool FACTORY AUTOMATION End of Arm Tool PACKAGING Corrugated Box Plant 35 MEDICAL Image-guided Radiation Therapy • High vibration and shock • Load bearing, mounting flexibility • Increased safety and accuracy • Simplify robot vision system • Load bea
Slide 36: Doctoring, Cleaning & Filtration Product Line
36 Doctoring, Cleaning & Filtration Product Line FLOW CONTROL BILAL MEHMOOD President, Kadant Solutions © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 37: Primary Product Offerings
37 Primary Product Offerings FLOW CONTROL DOCTORING, CLEANING & FILTRATION © KADANT INC. | 2024 KADANT INVESTOR DAY DOCTORING CLEANING Water removal, roll cleaning, and scraping products to maximize productivity and machine uptime. Fabric and belt cleaning products to improve product quality, runn
Slide 38: Key End Markets
38 BUILDING MATERIALS FOOD ENERGY METALS CONVERTING Key End Markets NON-WOVENS © KADANT INC. | 2024 KADANT INVESTOR DAY SYNTHETIC/ CARBON FIBER PACKAGING, PAPER & TISSUE FLOW CONTROL DOCTORING, CLEANING & FILTRATION
Slide 39: A global leader in doctoring, cleaning & filtration
INDUSTRY KADANT POSITION3 SIZE3 GROWTH3 POTENTIAL Packaging, Paper & Tissue 1 Construction (Building Materials) 2 Food 1 Metals 2 Energy 1 Converting -
Slide 40: 40© KADANT INC. | 2024 KADANT INVESTOR DAY
40© KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 41: Key Market: Tissue & Hygiene Products
End Use • Bath and facial tissue, kitchen napkin and towel • Home and hospitality/commercial grades 41© KADANT INC. | 2024 KADANT INVESTOR DAY ROI/Payback • Improved uptime and runnability • Consistent, high-quality production • Up to $1 million in production savings annually from reduced downtime d
Slide 42: Key Market: Food
42 HACCP International-certified products • Cleaning devices: improve product quality and increase throughput while ensuring food safety requirements are met • Holders and blades: reduce downtime associated with blade changes to increase production End Use: Crackers/Cookies, Chocolate Bars, Snack/Br
Slide 43: Key Market: Nonwovens
End Use: Fiberglass Mat, Wipes, Hygiene Products, Filters, Geo-Textiles, Insulation, Grocery bags Kadant Product: M-Clean Cleaning & Conditioning System ROI/Payback: Sustainability Goals • Reduce water usage by 95% over current methods • Reduced maintenance of key process equipment by 4x • Water reu
Slide 44: Key Market: Nonwovens – M Clean System
44© KADANT INC. | 2024 KADANT INVESTOR DAY Key Market: Nonwovens FLOW CONTROL DOCTORING, CLEANING & FILTRATION M Clean Cleaning and Conditioning System enables our customers to benefit from water reuse and fiber recovery.
Slide 45: Key Market: Nonwovens
End Use: Fiberglass Mat, Wipes, Hygiene Products, Filters, Geo-Textiles, Insulation, Grocery bags Kadant Product: M-Clean Cleaning & Conditioning System ROI/Payback: Sustainability Goals • Reduce water usage by 95% over current methods • Reduced maintenance of key process equipment by 4x • Water reu
Slide 46: Key Market: Molded Fiber
46 End Use: Food Containers, Packaging Kadant Products: Filtration Systems ROI/Payback: Sustainability Goals - Reuse process water to enhance machine operation and increase fiber recovery Our products filter 1.2 billion gallons of water per day, saving approximately $569 million per year in heating
Slide 47: Innovation: kConnect
47 Innovation The kConnect series is a group of smart-connected products and services designed to provide access to real-time metrics important for inventory management and machine performance. © KADANT INC. | 2024 KADANT INVESTOR DAY FLOW CONTROL DOCTORING, CLEANING & FILTRATION
Slide 48: Flow Control Key Takeaways
Flow Control Highly diversified end markets Secular market drivers highly favorable for sustainable growth Geographic expansion opportunities with latest business additions Strong aftermarket component to business 48 KEY TAKEAWAYS © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 49: Material Handling
© KADANT INC. | 2024 KADANT INVESTOR DAY 49 CHAD GREENFIELD Commercial Director, Syntron Material Handling MATERIAL HANDLING Driving sustainability through recycling solutions for industries and communities.
Slide 50: Material Handling Key Attributes
© KADANT INC. | 2024 KADANT INVESTOR DAY 50 Material Handling KEY ATTRIBUTES Infrastructure-critical end markets Continuous growth through industry expansion Resource sustainability initiatives provide strong growth Strong global market share Strong aftermarket component to business
Slide 51: Material Handling Market Trends
© KADANT INC. | 2024 KADANT INVESTOR DAY $213 $224 $237 $251 $265 $280 $296 $313 $331 $350 2021 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 2030E 51 Material Handling MARKET TRENDS Favorable market trends driving demand growth and multiple value-creation levers provide a compelling story for Kadan
Slide 52: Material Handling Product Lines
© KADANT INC. | 2024 KADANT INVESTOR DAY 52 BALERSCONVEYING AND VIBRATORY FEEDING Material Handling PRODUCT LINES
Slide 53: Conveying & Vibratory Feeding Product Line
CHAD GREENFIELD Commercial Director, Syntron Material Handling Conveying & Vibratory Feeding Product Line MATERIAL HANDLING
Slide 54: Markets and Applications
© KADANT INC. | 2024 KADANT INVESTOR DAY 54 FOODSTEELCONSTRUCTION COMPUTER CHIPS MEDICATIONSINFRASTRUCTURE Markets and Applications MATERIAL HANDLING CONVEYING & VIBRATORY FEEDING WIRING MET COALAGGREGATE CEMENT COPPER SAND AGRICULTURE PHARMA
Slide 55: Primary Product Offerings
© KADANT INC. | 2024 KADANT INVESTOR DAY SCREENING 55 Primary Product Offerings CONVEYING VIBRATORY FEEDING MATERIAL HANDLING CONVEYING & VIBRATORY FEEDING
Slide 56: Conveyor Idlers, Belt Trackers and Screw Conveyors
© KADANT INC. | 2024 KADANT INVESTOR DAY 56 Three Major Conveying Products: Conveyor Idlers, Conveyor Belt Trackers, and Screw Conveyors • Established industry leader since 1880 • Trusted global partner to leading producers • 24/7 real-time monitoring makes operations safer and more efficient
Slide 57: Screening Products
57 Screening Products • Applications in numerous industries, including heavy minerals, food processing, and pharmaceuticals • Screens are critical path equipment required for end users to operate • Wireless monitoring allows users to observe machine health and analyze data in real-time
Slide 58: Vibratory Feeder Products
58 Vibratory Feeder Products: Electromagnetic & Electromechanical • Industry leader that pioneered vibratory feeding technology almost 100 years ago • Highly-engineered products that increase productivity and improve cost-per-ton handling efficiency • Equipped with wireless Asset Performance Monitor
Slide 59: Automation: Asset Performance Monitoring
© KADANT INC. | 2024 KADANT INVESTOR DAY 59 Automation: Asset Performance Monitoring • 24/7 wireless monitoring sensor system collects and analyzes data in real-time on vibratory feeders and screens • Provide alerts for operational anomalies and potential failures • Users see increased production an
Slide 60: Automation: Smart Idler
© KADANT INC. | 2024 KADANT INVESTOR DAY 60 Automation: Smart Idler • 24/7 wireless monitoring alerts users of potential failures before they happen • Provides increased efficiency, reduced downtime, and a safer operating environment Innovation MATERIAL HANDLING CONVEYING & VIBRATORY FEEDING
Slide 61: Atlas Energy Solutions – Dune Express Project
© KADANT INC. | 2024 KADANT INVESTOR DAY 61 Atlas Energy Solutions – Dune Express Project • Longest overland conveyor in the Americas (42 miles) and the largest built in the world in the last 45 years • Dune Express is the most technologically advanced bulk material handling conveyor in the world •
Slide 62: © KADANT INC. | 2024 KADANT INVESTOR DAY 62
© KADANT INC. | 2024 KADANT INVESTOR DAY 62
Slide 63: Markets and Applications
© KADANT INC. | 2024 KADANT INVESTOR DAY 63 Markets and Applications MATERIAL HANDLING CONVEYING & FEEDING
Slide 64: Baler Product Line
CRAIG HELEY President, Kadant PAAL Baler Product Line MATERIAL HANDLING © KADANT INC. | 2024 KADANT INVESTOR DAY 64
Slide 65: Primary Product Offerings
© KADANT INC. | 2024 KADANT INVESTOR DAY 65 Primary Product Offerings AUTO-TIE CHANNEL BALER High throughput, high efficiency HOGGER & SHREDDER Process boxboard to make baling more efficient TWIN RAM BALER Suitable for wet waste containing organics PP TWINE AUTO-TIE BALER Complete bale can be incine
Slide 66: Konti video full screen
© KADANT INC. | 2024 KADANT INVESTOR DAY 66 Konti video full screen
Slide 67: Key Markets
© KADANT INC. | 2024 KADANT INVESTOR DAY 67 Kadant balers are utilized in a diverse range of applications. WASTE-TO-ENERGY AGRICULTUREPAPER & PACKAGINGRETAIL & DISTRIBUTION RECYCLERS & WASTE MANAGMENT Key Markets MATERIAL HANDLING BALERS
Slide 68: Key Markets – Material Recycling Facility
68 Key Markets – Material Recycling Facility (MRF) MATERIAL HANDLING BALERS
Slide 69: Key Markets
© KADANT INC. | 2024 KADANT INVESTOR DAY 69 Key Markets MATERIAL HANDLING BALERS Kadant balers are utilized in a diverse range of applications. WASTE-TO-ENERGY AGRICULTUREPAPER & PACKAGINGRETAIL & DISTRIBUTION RECYCLERS & WASTE MANAGMENT
Slide 70: End Markets
© KADANT INC. | 2024 KADANT INVESTOR DAY 70 A single Kadant baler can process a broad range of materials. SHREDDED PAPER CARDBOARD CLEAR PLASTIC HARD PLASTICS JUICE/DRINK BOX ALUMINUM BALE FIELD (CLEAN) WASTE TO FUEL AG PRODUCTS WRAPPED WASTE FUEL End Markets MATERIAL HANDLING BALERS
Slide 71: Manufacturing Quality and Automation
Reliable, repeatable quality is achieved through investment in the manufacturing process. 71 Automation • Automation investment in large welding robot • Kadant builds approximately 5 balers per week • Shortest lead times in market (< 10 weeks) MATERIAL HANDLING BALERS Reliable, repeatable quality
Slide 72: Innovation: BALEiD
© KADANT INC. | 2024 KADANT INVESTOR DAY 72 Innovation BALEiD (Bale material content) • Patented automatic application • RFID technology • Trace materials more accurately • Manage logistics more effectively
Slide 73: Innovation
73 Une image contenant Police, Graphique, texte, graphisme Description générée automatiquement Receive essential information Predict need to replace parts Connect to baler remotely Une image contenant Police, texte, Graphique, capture d’écran Description générée automatiquement Find and order spare
Slide 74: Innovation: illumen.X Dashboard
© KADANT INC. | 2024 KADANT INVESTOR DAY 74 IMCP (Information about the baler) • Digitalization Innovationillumen.X Dashboard MATERIAL HANDLING BALERS Time Period Number of Bales
Slide 75: Innovation: illumen.X Work Shop and Web Shop
© KADANT INC. | 2024 KADANT INVESTOR DAY 75 IMCP (Information about the baler) • Digitalization Innovationillumen.X Dashboard: Work Shop and Web Shop MATERIAL HANDLING BALERS Select the sub-assembly; drill down to the required part and order
Slide 76: Material Handling Key Takeaways
© KADANT INC. | 2024 KADANT INVESTOR DAY 76 Key Takeaways MATERIAL HANDLING Infrastructure-critical end markets Continuous growth through industry expansion Resource sustainability initiatives provide strong growth Strong global market share Strong aftermarket component to business
Slide 77: Industrial Processing
© KADANT INC. | 2024 KADANT INVESTOR DAY 77 MICHAEL COLWELL Senior Vice President, Industrial Processing INDUSTRIAL PROCESSING Solutions to help customers maximize the production of fiber-based, renewable products.
Slide 78: Industrial Processing Product Lines
78 Industrial Processing PRODUCT LINES FIBER PROCESSING 4WOOD PROCESSING © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 79: Industrial Processing Key Attributes
79 Industrial Processing Critical material breakdown equipment Has the biggest impact on fiber recovery and system profitability Replace-and-run wear parts Strong aftermarket and service revenue stream Large installed base Dominant and established global market share Strong growth and demand Fiber i
Slide 80: Industrial Processing Market Trends
$1,054 $1,116 $1,183 $1,251 $1,326 $1,404 $1,490 $1,580 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 80 Industrial Processing MARKET TRENDS © KADANT INC. | 2024 KADANT INVESTOR DAY Favorable market trends driving demand growth and multiple value creation levers provide a compelling story for Kadant
Slide 81: Market Trends: U.S. Housing Starts
81 Industrial Processing MARKET TRENDS © KADANT INC. | 2024 KADANT INVESTOR DAY Key Drivers: U.S. Housing Starts So urce: St. Louis Fed d ata, Nov 2024 and Kadan t an alysis
Slide 82: Industrial Processing Market Trends
$1,054 $1,116 $1,183 $1,251 $1,326 $1,404 $1,490 $1,580 2022 2023 2024E 2025E 2026E 2027E 2028E 2029E 82 Industrial Processing MARKET TRENDS © KADANT INC. | 2024 KADANT INVESTOR DAY Favorable market trends driving demand growth and multiple value creation levers provide a compelling story for Kadant
Slide 83: Wood Processing Product Line
83 MICHAEL COLWELL Senior Vice President, Industrial Processing Wood Processing Product Line INDUSTRIAL PROCESSING © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 84: Key Inputs
84 • is 100% solar powered; • removes carbon from the air; • converts it to a strong, beautiful, sustainable building product; and, • releases pure oxygen in the process? Can you imagine a machine that: Key Inputs INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 85: Primary Product Offerings
85 Number one in global market share for debarkers and stranders.3 DEBARKERS STRANDERS CHIPPERS KNIFE SYSTEMS Primary Product Offerings INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 86: Primary Product Offerings
86 DEBARKERS STRANDERS CHIPPERS KNIFE SYSTEMS Primary Product Offerings INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY Number one in global market share for debarkers and stranders.3
Slide 87: Primary Product Offerings
87 DEBARKERS STRANDERS CHIPPERS KNIFE SYSTEMS Primary Product Offerings INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY Number one in global market share for debarkers and stranders.3
Slide 88: Primary Product Offerings
88 DEBARKERS STRANDERS CHIPPERS KNIFE SYSTEMS Primary Product Offerings INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY Number one in global market share for debarkers and stranders.3
Slide 89: Primary Product Offerings
89 DEBARKERS STRANDERS CHIPPERS KNIFE SYSTEMS Primary Product Offerings INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY Number one in global market share for debarkers and stranders.3
Slide 90: Nicholson Value Proposition
Nicholson 90 Value Proposition INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 91: Nicholson Value Proposition
Nicholson 91 Value Proposition INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 92: End Markets
92 End Markets INDUSTRIAL PROCESSING WOOD Our mill customers produce wood products for end markets with dynamic growth. © KADANT INC. | 2024 KADANT INVESTOR DAY ORIENTED STRAND BOARD (OSB) PLYWOOD MEDIUM-DENSITY BOARD (MDF) PARTICLE BOARD BARK MULCH WOOD CHIPS DIMENSIONAL LUMBER MASS TIMBER
Slide 93: End Markets
93 End Markets INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY Source: West Fraser Investor Presentation, October 2024
Slide 94: Innovation
94 Innovation INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY • Variable Flare Reducer
Slide 95: Innovation
95 Innovation INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY • Variable Flare Reducer • Disposable Knife Systems
Slide 96: Innovation
• Variable Flare Reducer • Disposable Knife Systems • Argus real-time Vision Systems featuring illumen.X technology 96 Innovation INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 97: Value Proposition
97 Value Proposition INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 98: Value Proposition
98 Value Proposition INDUSTRIAL PROCESSING WOOD © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 99: Fiber Processing Product Line
CHRIS DEMLER President, Kadant Black Clawson Fiber Processing Product Line INDUSTRIAL PROCESSING 99
Slide 100: Whole-System Offerings
PAPER RECYCLING SYSTEMS REJECT HANDLING / UPCYCLING 100 Whole-System Offerings INDUSTRIAL PROCESSING FIBER We engineer solutions and manufacture equipment for entire fiber processing systems. VIRGIN FIBER SYSTEMS © KADANT INC. | 2024 KADANT INVESTOR DAY 100
Slide 101: End Markets
Photo PACKAGING CORRUGATED PAPERBOARD BOXES PRINTING PAPER MOLDED PULP TISSUE & TOWEL KRAFT PULP FOOD SERVICE End Markets INDUSTRIAL PROCESSING FIBER Our customers produce products for end markets with stable demand. © KADANT INC. | 2024 KADANT INVESTOR DAY 101
Slide 102: Paper Recycling Systems
102 Paper Recycling Systems Encompass Multiple Systems INDUSTRIAL PROCESSING FIBER © KADANT INC. | 2024 KADANT INVESTOR DAY 102 PAPER RECYCLING SYSTEMS
Slide 103: Paper Recycling System Case Study
103 Paper Recycling System Case Study INDUSTRIAL PROCESSING FIBER CASE STUDY • A brownfield opportunity to revitalize a small town/facility • Creative layout to utilize available equipment and adapt to the existing building space • Worldclass system design to provide one-of-a- kind product quality
Slide 104: Reject Handling and Upcycling Systems
104 104 Reject Handling and Upcycling Systems INDUSTRIAL PROCESSING FIBER © KADANT INC. | 2024 KADANT INVESTOR DAY CASE STUDY • The client was paying €5 million per year to landfill 100 tons per day of plastic rejects and desired to reduce operating expense • Our enhanced dewatering technology imp
Slide 105: Virgin Fiber Systems
FIBERLINE & WASHING HEAT TRANSFER EVAPORATION 105 Virgin Fiber Systems Comprise Multiple Systems INDUSTRIAL PROCESSING FIBER RECAUTISIZING VIRGIN FIBER SYSTEMS © KADANT INC. | 2024 KADANT INVESTOR DAY 105
Slide 106: Virgin Fiber Systems Case Study
106 Virgin Fiber Systems Case Study INDUSTRIAL PROCESSING FIBER CLEARED SITETHE TEAM PL NTHE FOUNDATIONTANK FABRICATIOBRIDGE EREC IPUMPS & CO TR LSFEE W LL & RAKESU & RUN ING CASE STUDY • Paper producer had an emergency failure of a critical clarifier costing 300 tons per day and $75,000 per day i
Slide 107: Innovation Process
107 The first continuous detrashing system Patented; most efficient cleaner in market Patented; market-leading clarifier system Innovation Process INDUSTRIAL PROCESSING FIBER © KADANT INC. | 2024 KADANT INVESTOR DAY • A reproducible process using cross-functional teams to develop innovative and el
Slide 108: Market Trends – Key Stats
Market Trends – Key Stats 108 INDUSTRIAL PROCESSING FIBER © KADANT INC. | 2024 KADANT INVESTOR DAY 94% Paper and board is the most recycled packaging in Europe Source: EUROSTAT, 2020 Packaging Recycling Rates 81.5% 75.7% 75.9% 37.6% Paper Metal Glass Plastic RECYCLING RATES 2023 65 - 69% 71 - 76%
Slide 109: Market Trends – Key Stats
109© KADANT INC. | 2024 KADANT INVESTOR DAY Market Trends – Key Stats INDUSTRIAL PROCESSING FIBER Source: RISI Fastmarkets, July 2024 Containerboard has been consolidating and is rebounding. • Kadant has performed well providing aftermarket parts and expanded services and is positioned for growth
Slide 110: Market Trends – Key Stats
110© KADANT INC. | 2024 KADANT INVESTOR DAY Demand for molded fiber packaging is forecast to rise 7.8% annually. https://www.freedoniagroup.com/industry-study/us-molded-fiber-packaging Market Trends – Key Stats INDUSTRIAL PROCESSING FIBER • Recyclable, compostable, biodegradable, and increasingly
Slide 111: Market Trends – Key Stats
Market Trends – Key Stats 111 INDUSTRIAL PROCESSING FIBER © KADANT INC. | 2024 KADANT INVESTOR DAY Source: TheRoundup.org • 35% of microplastics in oceans come from clothing • 92 million tons per year of textile becomes waste • Only 1% of clothing is recycled into new garments
Slide 112: Expanding Our Growth Prospects
• People-first service bundles: engineers, process, and digital support products • Provide EPC plant design and installation services that mill teams are no longer able to do Expanding Our Growth Prospects INDUSTRIAL PROCESSING FIBER • Offer digital twin process modeling and training • Provide mac
Slide 113: Industrial Processing Key Attributes
113 Industrial Processing Critical material breakdown equipment Has the biggest impact on fiber recovery and system profitability Replace-and-run wear parts Strong aftermarket and service revenue stream Large installed base Dominant and established global market share Strong growth and demand Fiber
Slide 114: Minute Break
10 Minute Break KADANT
Slide 115: Acquisition Strategy and 80/20
DARA MITCHELL Senior Vice President, Corporate Development 115 Acquisition Strategy and 80/20 © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 116: Proven Track Record of Successful M&A
Proven Track Record of Successful M&A 116© KADANT INC. | 2024 KADANT INVESTOR DAY Screen Baskets Kadant India
Slide 117: Types of Acquisitions and Where They Come From
Types of Acquisitions and Where They Come From Driven by Kadant’s divisions to ramp their strategic initiatives TUCK-INS Over 500 identified targets with the goal to avoid a process or at least be the “favorite” STRATEGIC STAND-ALONES Relationships with 150+ bankers who show us new platform ideas NE
Slide 118: Identifying and Acquiring the Best Businesses
Identifying and Acquiring the Best Businesses 120+ Actionable Opportunities 15+ Indications of Interest ~3 Acquisitions TYPICAL YEAR © KADANT INC. | 2024 KADANT INVESTOR DAY 118
Slide 119: Predominantly Proprietary Acquisitions Since 2019
Predominantly Proprietary Acquisitions Since 2019 Material Handling • Syntron NEW PLATFORMS Flow Control • Clouth • DSTI Industrial Processing • Kadant India • Cogent • Key Knife Material Handling • Balemaster • KWS STRATEGIC STAND-ALONES Flow Control • Solcera Industrial Processing • Celtec • Front
Slide 120: Our Approach to Making Acquisitions Successful
120 Our Approach to Making Acquisitions Successful • Acquisition Criteria • Acquisition Price Paid • Unlocking Value © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 121: Key Knife: Acquired in 2024
Key Knife: Acquired in 2024 • Mission Critical: Significant impact on wood fiber optimization • Attractive Market: Key market for Kadant • Market Position: Market leader in disposable knife systems • Robust Financials: 100% aftermarket parts with excellent margins • Customer Retention: Large worldwi
Slide 122: Creating Value: Best of Both Worlds
• 80/20 program • Pricing engine • LEAN manufacturing • Focus on driving aftermarket parts • Leveraging illumen.X digital platform • Geographic footprint and internal networking • Support for acquisitions • Being part of a public company Creating Value: Best of Both Worlds INDEPENDENCE THROUGH DECEN
Slide 123: Financial Impact of Acquisitions
Financial Impact of Acquisitions Since 2013: • Completed 24 acquisitions • Average deal multiple 8.8x through the period • Represent 56% of forecasted 2024 revenue • Represent 64% of forecasted 2024 adjusted EBITDA © KADANT INC. | 2024 KADANT INVESTOR DAY 123
Slide 124: Acquisition Performance
Acquisition Performance Average adjusted ROIC6 for 2023: 15% © KADANT INC. | 2024 KADANT INVESTOR DAY 124
Slide 125: The Next Years: Acquisition Strategy
The Next 5 Years: Acquisition Strategy • Continue to add strategic stand-alones and tuck-ins to leverage core markets • Selectively acquire new platforms in ancillary markets that strengthen the depth and breadth of Kadant • Maintain decentralized operating model • Maintain discipline in acquisition
Slide 126: 80/20: Serving our best customers even better
126 Serving our best customers even better. 80/20
Slide 127: 80/20 Explained
80/20 Explained 20% of efforts lead to 80% of results • Products • Customers © KADANT INC. | 2024 KADANT INVESTOR DAY 127 Results 80% Effort 20% The Pareto Principle FOCUS ON TREATING YOUR BEST CUSTOMERS EVEN BETTER
Slide 128: 80/20 Benefits
80/20 Benefits • Reduces complexity • Deepens key customer relationships • Drives profitable revenue growth • Provides focus • Frees up time • Empowers employees • Improves profit • Decreases invested capital = ROIC Profit Invested Capital © KADANT INC. | 2024 KADANT INVESTOR DAY 128
Slide 129: Our 80/20 Process
Our 80/20 Process • Heavily data-driven • Cross-functional teams focused on simplifying the business and expanding growth • Large numbers of people within the business working on teams • Recommendations are bottom-up not top-down • Not a “project” but a way of running the business • Typically takes
Slide 130: Product Simplification Team
Product Simplification Team • Team objective was to reduce number of materials and configurations offered, removing complexity • Multi-function team: Applications, R&D, Engineering, Manufacturing, Sales, Stock Room • Systematically analyzed data from both product and customer perspective • Then able
Slide 131: Product Simplification: Doctor Blades
Product Simplification: Doctor Blades 37% Materials 50% Configurations 74% Materials 85% Configurations “Keeping inventory is much easier. We are now standardizing which saves production time by allowing us to make more standard products.” - Tommy B., metal line lead and assistant supervisor • Simpl
Slide 132: Transformative Qualitative Benefits
Transformative Qualitative Benefits • Identifying top talent • Employee engagement through meaningful work, and empowerment through impacting change • Increased communication across business functions • Focused new product development • Targeted market expansion • Efficiency mindset applied to other
Slide 133: 80/20 Revenue Distribution
80/20 Revenue Distribution 44% © KADANT INC. | 2024 KADANT INVESTOR DAY 133 46%54% 2024F Revenue Under 80/20 Program Subsidiaries Under 80/20 Remaining Subsidiaries
Slide 134: 80/20 and Acquisitions: The Fit
80/20 and Acquisitions: The Fit Synergies are elusive and difficult to obtain making it challenging to achieve strong returns in a competitive deal market. 80/20 is highly effective, value enhancing and works especially well with a decentralized operating model. Challenge Value Enhancer © KADANT INC
Slide 135: Actual Results of 80/20 on Acquired Entity
($ millions) 2023 2020 CHANGE Revenue $112.6 $79.3 42.0% Gross Margin 35.2% 30.7% 450 bps SG&A, excluding intangible amortization, as % of revenue 10.8% 13.4% 260 bps Adjusted EBITDA* $28.9 $15.2 90.1% Adjusted EBITDA Margin* 25.7% 19.1% 660 bps Number of Parts 11,319 13,763 (17.8%) Actual Results o
Slide 136: Delivering Sustainable Value – Financial Review
136 Delivering Sustainable Value FINANCIAL REVIEW MICHAEL J. MCKENNEY Executive Vice President & CFO
Slide 137: Value Creation for Kadant Shareholders
Value Creation for Kadant Shareholders Strong track record of financial performance Steady and predictable recurring revenue stream Geographic and market diversity Strong free cash flows*Disciplined capital allocation Targeted growth in EBITDA* margin New five-year plan with excellent long- term out
Slide 138: Driving Profitable Growth: 2018 v. 2023
Driving Profitable Growth 138 KADANT 2018 v. 2023 $958 REVENUE 51% $166 OPERATING INCOME 87% $10.04 Adj. EPS* 88% $201 Adj. EBITDA* 75% 21.0% Adj. EBITDA MARGIN* 280 bps $166 CASH FLOW 163% (USD in millions, except per share amount) © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 139: Kadant performance surpasses most industrial companies
139© KADANT INC. | 2024 KADANT INVESTOR DAY Kadant performance surpasses most industrial companies.
Slide 140: Baird Industrial Company Composite Benchmarking
Baird Industrial Company Composite Benchmarking 140 KADANT PERFORMANCE COMPS © KADANT INC. | 2024 KADANT INVESTOR DAY The Baird Industrial Company Composite represents 484 companies which Baird views as indicative of the publicly traded industrial company universe.
Slide 141: Kadant Comparison to Other Industrials
Kadant Comparison to Other Industrials 141 BAIRD INDUSTRIAL COMPANY COMPOSITE (BICC) 2024F REVENUE GROWTH 2023 GROSS MARGIN © KADANT INC. | 2024 KADANT INVESTOR DAY -9.1% -3.2% 2.1% 7.2% 9.7% 13.2% p10 p25 p50 p75 KADANT p90 12.0% 18.8% 27.9% 37.3% 43.5% 46.7% p10 p25 p50 p75 KADANT p90
Slide 142: Kadant Comparison to Other Industrials
Kadant Comparison to Other Industrials 142 BAIRD INDUSTRIAL COMPANY COMPOSITE (BICC) 2023 ADJUSTED EBITDA MARGIN* 2023 ROIC5 © KADANT INC. | 2024 KADANT INVESTOR DAY 6.2% 9.8% 14.3% 19.8% 21.0% 25.0% p10 p25 p50 p75 KADANT p90 3.9% 9.4% 16.4% 27.5% 35.0% 38.4% p10 p25 p50 p75 KADANT p90
Slide 143: Strong Track Record of High Performance
Strong Track Record of High Performance 143 24% 22% 87% 16% 37% 81% 60% 105% 252% 1-Year 3-Year 5-Year Russell 3000 Dow Jones U.S. Industrial Machinery TSM Kadant Inc. (NYSE: KAI) TOTAL SHAREHOLDER RETURN (2023) © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 144: Steady and Predictable Recurring Revenue Stream
62% 38% Aftermarket Parts Steady and Predictable Recurring Revenue Stream 144 • Large installed base and new capital orders drive recurring parts sales • Razor / razor blade opportunities • Higher gross margins • Reduces revenue volatility • Enhances customer relationship AFTERMARKET PARTS v. CAPITA
Slide 145: Advantages of Geographic and Market Diversity
Advantages of Geographic and Market Diversity 145 REVENUE BY CUSTOMER LOCATION REVENUE BY END MARKET 2023 REVENUE SOURCE 47% 9% 26% 12% 6% U.S. Canada & Mexico Europe Asia ROW 36% 23% 21% 20% General Industrial Paper Wood Products Packaging © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 146: Strong Adjusted Free Cash Flow
$53 $87 $85 $150 $85 $141 2018 2019 2020 2021 2022 2023 Adjusted Free Cash Flow* Operating Cash Flow Strong Adjusted Free Cash Flow* 146 $166 $63 • Solid track record of debt paydowns • Leverage ratio7 target < 2.5%, currently at 1.13 • Capex as % of revenue approximately 2% to 2.5% • Working capita
Slide 147: Disciplined Capital Deployment
62%16% 11% 11% Dividends Disciplined Capital Deployment 1471 $553 million CAPITAL ALLOCATION 2019-2023 Acquisitions Capex R&D • $345 million invested in acquisitions • Average acquisition multiple of 9.2x • Average adjusted ROIC6 for significant acquisitions completed since 2013 is 15% • Cash divide
Slide 148: Historical Performance / Five-Year Financial Targets
HISTORICAL PERFORMANCE FIVE-YEAR FINANCIAL TARGETS 148
Slide 149: Five-Year Financial Targets for 2017
Five-Year Financial Targets for 2017 1491 Base 2012 Target for 2017 Actual 2017 Revenue $332 million $500 - $550 million $515 million Adjusted EBITDA* $45 million $60 - $80 million $92 million Adjusted EPS* $2.29 $4.00 - $5.00 $4.49 Free Cash Flow* $25 million $45 - $60 million $48 million Net (Cash
Slide 150: Five-Year Financial Targets for 2021
Five-Year Financial Targets for 2021 1501 Base 2016 Target for 2021 Actual 2021 Revenue $414 million $700 - $800 million $787 million Adjusted EBITDA* $62 million $100 - $125 million $159 million Adjusted EPS* $3.10 $5.00 - $6.00 $7.83 Free Cash Flow* $45 million $70 - $80 million $150 million Net (
Slide 151: Five-Year Financial Targets for 2023
Five-Year Financial Targets for 2023 151151 Base 2018 Target for 2023 Actual 2023 Revenue $634 million $1 - $1.2 billion $958 million Adjusted EBITDA* $115 million $210 - $230 million $201 million Adjusted EBITDA Margin* 18.2% 20.0% 21.0% Adjusted EPS* $5.34 $8.00 - $9.00 $10.04 Adjusted Free Cash F
Slide 152: Revenue and Adjusted EPS Performance
Revenue and Adjusted EPS* Performance 1521 DELIVERING CONSISTENT LONG-TERM GROWTH $634 $705 $635 $787 $905 $958 2018 2019 2020 2021 2022 2023 $5.34 $5.36 $5.00 $7.83 $9.24 $10.04 2018 2019 2020 2021 2022 2023 REVENUE CAGR: 8.6% ADJUSTED EPS* CAGR: 13.5% © KADANT INC. | 2024 KADANT INVESTOR DAY
Slide 153: Targeted Growth in EBITDA Margin
Targeted Growth in EBITDA Margin* 1531 ENHANCING OUR MARGIN PROFILE • Key financial metric • 280 bps improvement over 5 Years • 800 bps improvement over 10 Years • New adjusted EBITDA margin* target of 23%+ HIGHLIGHTS $115 $127 $116 $159 $189 $201 18.2% 18.0% 18.3% 20.3% 20.9% 21.0% 16.5% 17.0% 17.5
Slide 154: Improving Operating Leverage to Maximize Value
Improving Operating Leverage to Maximize Value 1541 STRONG EXECUTION CAPABILITIES ENHANCE PROFITABLE GROWTH • 320 bps improvement over 5 years • 880 bps improvement over 10 years • Contributions from 80/20 program • Leverage automation and lean operating principles • Continue to improve operating le
Slide 155: 2024-2028 Five-Year Plan
2024-2028 FIVE-YEAR PLAN 155
Slide 156: 2024-2028 Five Year Plan
2024-2028 Five Year Plan 156 FINANCIAL TARGETS & ASSUMPTIONS © KADANT INC. | 2024 KADANT INVESTOR DAY • Economic growth will be moderate yet steady throughout the period • Industrial demand will track closely to GDP growth • Organic growth of 3% to 5% will benefit from numerous internal programs, in
Slide 157: Excellent Long-Term Outlook
$958 $1,650 2023 2028 $201 $380 2023 2028 CAGR: 11.5% Excellent Long-Term Outlook 157 REVENUE AND ADJUSTED EBITDA* GROWTH © KADANT INC. | 2024 KADANT INVESTOR DAY REVENUE CAGR: 13.6% ADJUSTED EBITDA* 21.0% 23.0% (midpoint of range) (midpoint of range) ($ in millions)
Slide 158: Summary & Conclusion
Summary & Conclusion JEFFREY L. POWELL President & Chief Executive Officer
Slide 159: Value Creation for Kadant Shareholders
Value Creation for Kadant Shareholders • Growing end markets driven by global macro trends • Decentralized structure, asset-light operating model • Strong track record of financial performance • Strong free cash flows* • Disciplined capital allocation and proven record of value-creating acquisitions
Slide 160: Value Creation for Kadant Shareholders
Value Creation for Kadant Shareholders 160 CONSISTENTLY DELIVERING GROWTH FOR OUR SHAREHOLDERS 36.0% 24.5% 2009 2023 ADJUSTED EBITDA MARGIN* ADJUSTED SG&A* (as a % of revenue) © KADANT INC. | 2024 KADANT INVESTOR DAY 5.1% 21.0% 2009 2023
Slide 161: Value Creation for Kadant Shareholders
$0.13 $10.04 2009 2023 Value Creation for Kadant Shareholders 161 CONSISTENTLY DELIVERING GROWTH FOR OUR SHAREHOLDERS $226 $958 2009 2023 REVENUE ADJUSTED EPS* © KADANT INC. | 2024 KADANT INVESTOR DAY $11 $201 2009 2023 ADJUSTED EBITDA* CAGR: 10.9% CAGR: 22.8% CAGR: 36.4% ($ in millions except per s
Slide 162: Question & Answer
Question & Answer
Slide 163: Appendix
163 KADANT 2024 INVESTOR DAY Appendix
Slide 164: Adjusted EPS Reconciliation
Adjusted EPS* Reconciliation 2009 2010 2011 2012 2013 2014 2015 2016 2017 GAAP EPS from Continuing Operations, as reported $ (0.48) $ 1.48 $ 2.74 $ 2.66 $ 2.07 $ 2.56 $ 3.09 $ 2.88 $ 2.75 Restructuring Costs and Other Expense (Income), net of tax 0.24 (0.07) (0.13) 0.03 - 0.05 0.03 (0.02) 0.01 Acqui
Slide 165: Adjusted EPS Reconciliation
Adjusted EPS* Reconciliation 2018 2019 2020 2021 2022 2023 GAAP EPS, as reported $ 5.30 $ 4.54 $ 4.77 $ 7.21 $ 10.35 $ 9.90 Settlement and Curtailment Losses, net of tax 0.09 0.55 - - - - Gain on Sale of Buildings and Other Income, net of tax - - - (0.03) (1.30) (0.05) Impairment and Restructuring C
Slide 166: Adjusted Free Cash Flow Reconciliation
Adjusted Free Cash Flow* Reconciliation ($ in millions) 2018 2019 2020 2021 2022 2023 Operating Cash Flow, as reported $ 63.0 $ 97.4 $ 92.9 $ 162.4 $ 102.6 $ 165.5 Capital Expenditures, as reported (16.6) (9.9) (7.6) (12.8) (28.2) (31.8) Free Cash Flow* $ 46.4 $ 87.5 $ 85.3 $ 149.6 $ 74.4 $ 133.7 Ca
Slide 167: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation ($ in millions) 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net Income Attributable to Kadant $ (5.9) $ 18.5 $ 33.6 $ 31.6 $ 23.4 $ 28.7 $ 34.4 $ 32.1 $ 31.1 Net Income Attributable to Noncontrolling Interest - 0.3 0.3 0.2 0.2 0.4 0.3 0.4 0.5 Provision for Income Tax
Slide 168: Adjusted EBITDA Reconciliation
Adjusted EBITDA* Reconciliation ($ in millions) 2018 2019 2020 2021 2022 2023 Net Income Attributable to Kadant $ 60.4 $ 52.1 $ 55.2 $ 84.0 $ 120.9 $ 116.1 Net Income Attributable to Noncontrolling Interest 0.6 0.5 0.5 0.8 0.8 0.7 Provision for Income Taxes 18.5 16.3 17.9 27.2 43.9 42.2 Interest Exp
Slide 169: Adjusted SG&A Reconciliation
Adjusted SG&A* Reconciliation ($ in millions) 2009 2010 2011 2012 2013 2014 2015 2016 2017 SG&A $ 81.2 $ 89.2 $ 102.7 $ 103.1 $ 117.6 $ 129.3 $ 122.8 $ 134.8 $ 159.8 Acquisition Costs - - (0.2) (0.2) (1.8) (0.3) - (1.8) (5.4) Amortization of Acquired Backlog - - - - (1.1) (0.4) (0.1) (1.5) (1.4) Adj
Slide 170: Adjusted SG&A Reconciliation
Adjusted SG&A* Reconciliation ($ in millions) 2018 2019 2020 2021 2022 2023 SG&A $ 177.4 $ 192.5 $ 181.9 $ 208.8 $ 224.4 $ 236.3 Government Assistance Programs - - 2.2 1.4 - - Acquisition Costs (1.3) (0.8) (0.5) (3.6) (0.7) (1.4) Amortization of Acquired Backlog (0.3) (1.3) (0.5) (1.4) (0.7) - Indem
Slide 171: Notes
171 Notes PRESENTATION NOTES • All references to EPS (earnings per share) are to our EPS as calculated on a diluted basis. • Specific non-GAAP financial measures have been marked with an * (asterisk) within this presentation. A reconciliation of those numbers to the most directly comparable GAAP fin