Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — Investor Presentation (February 2016)
47 slides from Manitowoc Company, Inc. (the)'s investor presentation, Feb 18, 2016
Slide 1: Investor Presentation February 2016
Investor Presentation February 2016 Exhibit 99.1
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 uncertaint
Slide 3: Presenters
Presenters Director, President & Chief Executive Officer Senior Vice President & Chief Financial Officer Hubertus Muehlhaeuser John Stewart Senior Vice President, Innovation Rick Caron Vice President, Investor Relations & Treasury Rich Sheffer
Slide 4: Agenda
Agenda Transaction Overview Foodservice at a Glance Investment Highlights Innovation Financial Overview Appendix
Slide 5: Transaction Overview
anifowoc Foodservice TRANSACTION OVERVIEW
Slide 6: Transaction Overview
Transaction Overview Company Manitowoc Foodservice, Inc. Ticker MFS Exchange NYSE Record Date 22-Feb-2016 Distribution Date 04-Mar-2016 When Issued Trading Begins 18-Feb-2016 First Day of Regular Way Trading 04-Mar-2016 Distribution Ratio 1 share of Manitowoc Foodservice for every 1 share of Manitow
Slide 7: Foodservice at a Glance
anifowoc Foodservice FOODSERVICE AT A GLANCE
Slide 8: Manitowoc Foodservice's Evolution
Manitowoc Foodservice’s Evolution The company acquires Scotsman Industries in the United States, expanding its foodservice range to include refrigeration technologies, 1999 Samuel and William Berisford found a small grocery and pharmacy in Manchester; under their grandson, William Berisford, the sto
Slide 9: Business Overview
Business Overview Designs, manufactures and services cooking, holding, food-preparation, beverage-dispensing, refrigeration, and ice-making technologies Supplies foodservice equipment to full and quick-service restaurant chains, hotels, caterers, supermarkets, convenience stores, business and indust
Slide 10: Investment Highlights
anifowoc Foodservice INVESTMENT HIGHLIGHTS
Slide 11: Key Investment Highlights
Key Investment Highlights Comprehensive Portfolio of Cold and Hot Professional Kitchen Equipment 1 12 Market Leading Brands Holding #1 or #2 Positions 2 Diversified Geographic, End Market and Customer Channel Exposure 3 Long-standing, Sticky Customer Relationships 4 Recognized as Innovation Leader 6
Slide 12: Full Line Portfolio of 23 Leading Brands
Ice-cube machines Commercial fryers Walk-in refrigerators and freezers Commercial ranges, ovens, grills and induction units Beverage dispensing equipment Cold products (~50% revenue) Hot products (~35% revenue) Services (~15% revenue) Full Line Portfolio of 23 Leading Brands in Both Cold & Hot Profe
Slide 13: Key Product Categories and Illustrative Products
Product Type Key Product Categories Illustrative Products Beverage Dispensers & Related Products Beverage dispensers Blended ice machines Ice/beverage dispensers Beer coolers Post-mix dispensing valves Backroom equipment and support system components Related equipment used by quick-service restauran
Slide 14: Brands Hold Market-Leading #1 or #2 Positions
12 of our 23 Brands Hold Market-Leading #1 or #2 Positions 2 Industry leading brands across Manitowoc Foodservice’s cold and hot portfolio Beverage Dispensers & Related Products in Chillers Global #2 in Beverage Blending Systems Global #1 Ice Machines & Refrigeration Systems in Ice Machines Global #
Slide 15: Diversified Geographic, End Market and Customer Channel Exposure
Manufacturing, Office & WarehouseOfficeWarehouseLand Revenue by Geography¹ Ability to serve wide range of end markets and customers on a global scale Corporate HeadquartersManufacturingManufacturing & Office Global Footprint4,5 1 Reflects net sales by destination for the nine months ended September
Slide 16: Long-standing, Sticky Customer Relationships
4 Long-standing, Sticky Customer Relationships Top 5 Global End Customers (2014) Customer % of FY14 Revenue # of Years¹ End Customer 1 10.0% 52 End Customer 2 4.9% 25 End Customer 3 3.9% 55 End Customer 4 2.2% 33 End Customer 5 1.3% 48 Over 40 years average relationship with our top 5 end customers,
Slide 17: Steady and Sticky Revenue Base from Replacement Demand
Predictable product replacement cycles support stable Manitowoc Foodservice revenue 2016 U.S. Foodservice Equipment Needs1 ¹ Source: Foodservice Equipment and Supplies. Steady and “Sticky” Revenue Base from Significant Replacement Demand… 5 More than 80% of demand driven by replacement and renovatio
Slide 18: Leading KitchenCare Aftermarket Service Offering
Provides recurring, higher margin revenue and aids in customer stickiness ~15% of revenue generated by stable KitchenCare service offering …And Leading KitchenCare Aftermarket Service Offering 5 KitchenCare protects, services, and maintains foodservice equipment throughout the product lifecycle Each
Slide 19: Recognized as Innovation Leader
We provide crucial products that help our customers to stay profitable The new Merrychef eikon e2s High speed oven 15x Up to faster Example Healthy Quality Better service Variety Consumers Operators Improved flexibility Speed of service Sanitation Reduced labor Reduced waste Drivers Innovative Solut
Slide 20: Innovation as a Significant Competitive Advantage
Innovation has served as a significant competitive advantage Notable Innovation by Manitowoc Foodservice 6 Kitchen Solutions Connectivity for Kitchens Common Digital Controls on Equipment Innovations in Beverage Digital Training / Controller Demos New Business Model Partnerships
Slide 21: Long-standing History of Award-Winning Products
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Liquitec® Dual Technology Finisher (DTF) 502 Oven Combi-Ovens Fusion™ Toaster Mini-Combi Oven Versa Drawer® FASTBake™ Impinger Oven Protector™ (OCF) Fryer Restaurant Range HE Broiler 8005 Return Toaster Protector™ (OCF) Gas Fryer Xpress® Grill Q
Slide 22: Key Demographic Trends Point to Continued Demand
Key demographic trends point to continued demand for foodservice products and growing disposable income The Global Population has tripled since the 1950s and is expected to reach over 9 billion by 2050¹ Global per capita income is expected to exhibit continued growth over the 2015-2030 period2,3 1 S
Slide 23: Exposure to Positive Demographic and Other Mega-Trends
7 Exposure to Positive Demographic and Other Mega-Trends Products aimed to increase food safety and reduce waste generation in the kitchen Food Safety and Sanitation1 A growing need for modern food equipment to ensure food safety in restaurants worldwide Trends in urbanization and globalization have
Slide 24: Short Term Focus on Simplification and Right-Sizing
Started implementation of an aggressive program to right-size the business and drive efficiency Simplification 80:20 product and customer line simplification and rationalization Improved manufacturing efficiency and productivity improvements KitchenCare operating improvements Right-Sizing Plant rati
Slide 25: Significant Runway for Margin Improvement
Significant Runway for Margin Improvement 9 Considerable margin improvement opportunities exist for Manitowoc Foodservice as a standalone foodservice company 2012 - 2014 Revenue Growth vs. FYE 12/31/2014 EBITDA Margin Middleby and Rational have an average EBITDA Margin of ~26% vs. Foodservice’s EBIT
Slide 26: Key Strategic Priorities
Key Strategic Priorities 9 Strategic Objective Thrusts Achieving Profitable Growth Right-size and simplify to advance toward industry competitive margin structure Focus on organic short term growth and long term buy and build Creating Innovative Products & Solutions Actively address product competit
Slide 27: Highly Experienced Management Team
Highly Experienced Management Team 10 Note: Industry defined to include food and beverage, agriculture and foodservice equipment Hubertus Muehlhaeuser Director, President & CEO Joined MTW / MFS in 2015 Yrs. in Industry: 13 Prior to MFS, served as SVP and GM of EMEA at AGCO Corporation Also served as
Slide 28: Product Innovation
anifowoc Foodservice PRODUCT INNOVATION
Slide 29: Our Innovation Strategy
Our Innovation Strategy Control System Information Flow Procedures Equipment Food & Beverage People Starts with the integration of food, people and equipment
Slide 30: Merrychef eikon series High-Speed Ovens
Merrychef® eikon® series High-Speed Ovens Ideal for quick and limited services restaurants, convenience stores, supermarkets, hotels and universities Up to 15x faster than conventional cooking methods: Toasted sandwich in 50 seconds Ventless oven with easy plug-n-play installation
Slide 31: Convotherm Combination Ovens
Convotherm® Combination Ovens Bulk Cooking: Steam, Convection, Smoking Cooks a Variety of Foods for all Dayparts Popular models have ENERGY STAR® rating Backbone of the kitchen for Bocuse d’Or competition
Slide 32: Frymaster FilterQuick with Oil Quality Sensor
Frymaster® FilterQuick® with Oil Quality Sensor 30lb vs. 50lb frypot: Uses 40% less oil Saves up to $6,000 annually in oil costs Integrated Oil Quality Sensor is the world’s first fully integrated oil testing system
Slide 33: Manitowoc Ice and Beverage Systems
Manitowoc Ice and Beverage Systems Manitowoc Ice® Indigo®: The Intelligent Ice Machine Intelligent Ice Machines with Display Cleaning processes is a simple one-touch of a button Three Brand Strategy: Manitowoc Ice®, Koolaire®, Welbilt® Servend® LPX: Low Profile Ice & Beverage Dispenser An all-in-one
Slide 34: Innovations in Beverage from Multiplex
Innovations in Beverage from Multiplex Blend-in-Cup® Beverage System N2Fusion – Nitro Coffee Dispense, blend and serve – in the same container Serves hundreds of beverages per day Reduces waste and saves labor Saves up to $5,000 annually on concentrate cost Cold Brew Coffee with Nitrogen Infusion ar
Slide 35: KitchenConnect Connectivity for Kitchens
KitchenConnect® Connectivity for Kitchens Enabling new long term business models The Heart of the Kitchen Ventilation Lighting Other building systems Refrigeration Kitchen Comprehensive In-Field Support Installation Planned Maintenance Start-ups Menu Management Alerts & Actions Repairs / Smart Dispa
Slide 36: The Vision for the Future – Kitchen 4.0
The Vision for the Future – Kitchen 4.0 Developing a kitchen operating system based on manufacturing principles Drive Through Optimization Inventory Management Kitchen Management and Control In Store Traffic Analytics Front of House Optimization Back of House Systems Optimization Labor Productivity
Slide 37: Financial Overview
anifowoc Foodservice FINANCIAL OVERVIEW
Slide 38: Key Financial Highlights
Key Financial Highlights Historical Revenue and Adjusted EBITDA 1 Historical Capital Needs & Cash Flow 2 Capital Allocation 3 Recent Performance 4 2016 Guidance 5
Slide 39: Historical Revenue and Adjusted EBITDA
Historical Revenue and Adjusted EBITDA (US$ in millions) Pro Forma Revenue Pro Forma Adjusted EBITDA & Margin Generates stable revenue and Adjusted EBITDA throughout economic cycles Leading product portfolio and innovative offerings support robust margins Restructuring initiatives in progress expect
Slide 40: Historical Capital Needs & Cash Flow
Historical Capital Needs & Cash Flow (US$ in millions) Capex & % of PF Sales Free Cash Flow1 & % of PF Adjusted EBITDA Limited capital intensity requirements allow Adjusted EBITDA to largely convert directly to cash flow Significant unlevered free cash flow1 generation 2 Note: LTM 3Q15 figures exclu
Slide 41: Capital Allocation
Capital Allocation Foodservice’s strong free cash flow generation expected to give the Company flexibility to execute on management's business plan 3 Leverage Focus on de-leveraging over time Liquidity Estimated initial cash on balance sheet at spin of $25mm Revolver at $225mm provides flexibility f
Slide 42: Recent Performance
Recent Performance Revenue Costs Revenue (US$ in millions) Commentary Quarterly Performance Fiscal Year Performance Operating Earnings1 Q4 2015 revenue was up 4.7%, to $391.7mm from $374.2mm in Q4 2014 Improvement was due to continued strength in cold-side products and Kitchen Care Hot-side sales ar
Slide 43: 2016 Guidance
2016 Guidance Organic Revenue Up 2% - 4% over 2015 net sales – as adjusted (excludes KPS) Organic Operating Margin Between 16% and 17% (excludes KPS, includes corporate costs of ~$30 million) Includes the projected incremental 2016 benefit of all previously announced cost savings and margin improvem
Slide 44: MFS / MTW Filing Calendar
MFS / MTW Filing Calendar MTW MFS February 2016 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 March 2016 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 May 2016 S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 1
Slide 45: Appendix: Additional Materials
APPENDIX: ADDITIONAL MATERIALS
Slide 46: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation (US$ in millions)
Slide 47: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation (US$ in millions)