Jbt Marel Corporation · NYSE:JBTM
Jbt Marel — Investor Presentation (November 2024)
35 slides from Jbt Marel's investor presentation, Nov 13, 2024
Slide 1: Investor Presentation
Investor Presentation November 13, 2024
Slide 2: Forward-Looking and Non-GAAP Statements
Forward-Looking and Non-GAAP Statements This presentation contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are information of a non-historical nature and are subject to risks and uncertainties that are beyond JBT’s abi
Slide 3: Important Additional Information
Important Additional Information Important Notices This presentation is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unl
Slide 4: Introduction to JBT
Introduction to JBT 4
Slide 5: Why Invest in JBT?
Why Invest in JBT? Pure-play global food and beverage technology company with broad participation 1 across attractive and resilient markets Compelling secular trends along with market leading technologies and 2 application knowledge support growth Large and growing installed base support resilient a
Slide 6: JBT at a Glance: Leading Global Technology Solutions Provider to High-Value Segments of the Food & Beverage Industry
JBT at a Glance: Leading Global Technology Solutions Provider to High-Value Segments of the Food & Beverage Industry 1884 3,000+ 25+ ~$3.8B ~5,100 JBT (NYSE) Year Founded Customers Globally (1) Countries (1) Market Cap (2) Employees (1) Listed Since 2008 ~$1.7B 48% $284M 16.8% $184M 0.4x TTM Revenue
Slide 7: Broad Participation in Diverse Food & Beverage End Markets is a Strong Differentiator
Broad Participation in Diverse Food & Beverage End Markets is a Strong Differentiator JBT 2023 Equipment Orders by End Market 24% 15% 13% 12% Poultry Beverages, Fruit & Meat & Juices, Dairy & Vegetables Seafood Alternatives 11% 9% 9% 4% 3% Ready Meals, Warehouse Pharmaceuticals Pet Food, Plant Other
Slide 8: More Stable and Resilient Investment by Food & Beverage Producers Supports JBT
More Stable and Resilient Investment by Food & Beverage Producers Supports JBT Indexed Capex Comparison (1) Benefits of Stable Demand for Food and Beverage Products More moderated growth expected in 2024 given Quick capex recovery larger capacity expansions in prior years ▪ Continued growth in food
Slide 9: Demonstrated Resiliency Through the Cycle with Recurring Revenue Model Leveraging Large Global Installed Base
Demonstrated Resiliency Through the Cycle with Recurring Revenue Model Leveraging Large Global Installed Base JBT Recurring Revenue ($ millions) Recurring Revenue Driven by Sales $846 and Service Network $751 ▪ ~600 field service technicians globally support equipment and leases $662 Parts & Consuma
Slide 10: We are Executing on our Elevate 2.0 Strategy
We are Executing on our Elevate 2.0 Strategy 1 Organic Growth ▪ New product development – automation, sustainability, efficiency/yield 2 ▪ End market penetration ▪ Cross-selling opportunities ▪ Continued penetration into attractive geographies DIGITAL TRANSFORMATION 1 2 DigitaI Transformation ▪ Roll
Slide 11: Driving Organic Growth at JBT
Driving Organic Growth at JBT Growing above durable Providing solutions in Serving customers Need for automation, market demand diverse markets with through holistic digital, and sustainable Enabled by broad durable demand partnership model solutions participation in attractive More consistent consu
Slide 12: Kaizen and Continued Operational Enhancement Opportunities
Continued Operational Enhancement Opportunities JBT Business System Supply Chain & Strategic Sourcing Initiatives Supply Base ools Da T ily Consolidation n ea M an D dL an Pl o age Kaizen an Make vs. Buy Decisions ment Business System + Relentless Continuous Improvement (Lean) Value Engineering & Co
Slide 13: OmniBlu's Holistic Approach and JBT's Application Expertise Provide Differentiated Results
OmniBlu’s Holistic Approach and JBT’s Application Expertise Provide Differentiated Results Machine Performance Customer Proactively monitor real-time performance along with application Benefits expertise to improve efficiency/output, anticipate failures & predict maintenance Improved Profitability F
Slide 14: Disciplined Capital Allocation Strategy Supports Growth
Disciplined Capital Allocation Strategy Supports Growth JBT Capital Deployment Priorities JBT Net Leverage Ratio (1) Return generating Complementary capital expenditures M&A 0.6x 0.6x 0.6x 0.5x 0.4x Target leverage of Return capital to Q3 Q4 Q1 Q2 Q3 2.0 – 3.0x shareholders 2023 2023 2024 2024 2024
Slide 15: Proven Ability to Execute and Integrate M&A
Proven Ability to Execute and Integrate M&A JBT M&A Framework for Strategic and Financial Criterion / Returns Key M&A Focus Areas: Targets With: ROIC Target: Primary, further processing, end of Strong intellectual property in key Double-digit by year three for line packaging, and technologies that c
Slide 16: JBT's Responsibility and Sustainability Framework
JBT’s Responsibility and Sustainability Framework CUSTOMER SOLUTIONS RESPONSIBLE OPERATIONS PEOPLE AND COMMUNITIES ▪ Water, steam, energy and utility ▪ Manufacturing and office operations ▪ Safety for all, first and foremost optimization ▪ Consumables reduction/reuse ▪ Employee satisfaction, develop
Slide 17: JBT's Prioritization and Focus on ESG
JBT’s Prioritization and Focus on ESG Customer Solutions Responsible Operations People and Communities JBT empowers customers to optimize energy and JBT takes every opportunity to reduce our carbon JBT strives to engage our employees to foster a diverse, water consumption, prioritize food safety and
Slide 18: Complementary Combination with Marel
Complementary Combination with Marel 18
Slide 19: JBT and Marel: Aligned to Transform Food Processing and Fortify the Future of Food
JBT and Marel: Aligned to Transform Food Processing and Fortify the Future of Food mer Unm o st ips a u C nsh Ta tc Customer Benefits le tio he Re ep nt d De la Aligned to Transform Improved Increased Ease of Doing Outcomes Uptime Business the Way Food Scale and F oc b i l i t y Operat Rigo is Proce
Slide 20: Creating a Leading Global Food & Beverage Technology Solutions Company
Creating a Leading Global Food & Beverage Technology Solutions Company 1 Markets: Greater end market participation in resilient and growing food & beverage markets Solutions: Compelling platform to accelerate growth by offering broader solutions, utilizing 2 holistic application knowledge, and lever
Slide 21: Combined Company is Expected to Benefit from Resilient Growth Trends Across Select Diverse End Markets
Combined Company is Expected to Benefit from Resilient Growth Trends Across Select Diverse End Markets Global Protein Global Convenience Global Ready-To-Drink Global Pet Food Consumption Food Market Beverage Market Market Low-to-Mid-Single Mid-Single Mid-Single Mid-Single Digits Digits+ Digits Digit
Slide 22: Combined Company is Strategically Positioned to Capture Customer Investment Trends, Enabling Growth Above GDP
Combined Company is Strategically Positioned to Capture Customer Investment Trends, Enabling Growth Above GDP Company Vision ▪ Constantly changing demand driven by Ever Evolving preferences for various flavors, diets, Consumer sustainability, etc. Preferences ▪ Requires continuous new product introd
Slide 23: Complementary Core Technologies in Protein and Pet Food Processing Support Broader Portfolio Offering for Customers
Complementary Core Technologies in Protein and Pet Food Processing Support Broader Portfolio Offering for Customers Primary processing Secondary Further End of line Benefits of Fuller Solutions Killing, stunning, eviscerating, Cut-up, de-boning, Forming, coating, Handling, chilling, etc. skinning, p
Slide 24: Greater Ability to Provide Leading Customer Care and Service
Greater Ability to Provide Leading Customer Care and Service Significant Benefits for Customers ✓ ~1,700 service technicians globally to support aftermarket care for equipment and leases Enhanced ✓ Greater scale and density of resources enables Customer Care increased capacity to service customers m
Slide 25: Combined Software and Digital Ecosystems Optimize Customer Processing and Profitability
Combined Software and Digital Ecosystems Optimize Customer Processing and Profitability and Enhance Combined Company’s Aftermarket Opportunity Marel Software + OmniBlu : Complementary Paths to Digital Solutions That Meet Customer Needs Manufacturing Execution Process Machine Machine Health / System
Slide 26: Combination Will Provide Enhanced Scale & Profitable Growth
Combination Will Provide Enhanced Scale & Profitable Growth (1) $ millions Full Year 2023 Pro Forma Combined Company 2025 Revenue $1,664 $1,876 $3,540 Expected Profile (Per S-4 Filing) (4) Diverse End Markets: Poultry 24% Poultry 48% Poultry 37% Top Order Categories Beverages 15% Meat 22% Meat 16% ~
Slide 27: Expect to Deliver Compelling Cost Synergies
Expect to Deliver Compelling Cost Synergies Direct Materials: ~$25 - $35M ▪ Supplier consolidation Anticipated Cost Synergies ▪ Best cost country sourcing ▪ Value add / value engineering >$125M Indirect: ~$15 - $25M Cost of Goods Sold: ▪ Logistics efficiencies >$55M (1) ▪ Spend reduction ▪ Supplier
Slide 28: Opportunity to Generate Meaningful Revenue Synergies >$75M
Opportunity to Generate Meaningful Revenue Synergies Potential Revenue Uplift Serve as better partner for protein customers, offering integrated solutions and enhanced line coverage to drive our customer overall equipment effectiveness >$75M Leverage customer base with improved cross-selling through
Slide 29: Formal Integration Office to Ensure Successful Execution and Synergy Capture
Formal Integration Office to Ensure Successful Execution and Synergy Capture ▪ Thoughtful about creating a shared vision, purpose, and culture that respects both organizations Clearly Articulated North Star ▪ Ensuring growth and customer-focused planning efforts are designed to strengthen the combin
Slide 30: Marel Transaction Update
Marel Transaction Update ▪ On October 23, following completion of pre-notification information exchanges, JBT formally notified the European Commission (E.C.) under EU Merger Regulation of proposed acquisition of Marel Regulatory ▪ E.C. is formally reviewing notification, and the standard 25-working
Slide 31: Target Timeline for Marel Transaction
Target Timeline for Marel Transaction 2024 2025 May June July August September October November December January Before year-end 2024: Completed: Target regulatory Regulatory Preparation and submission Regulatory review approvals prior to YE of required filings 2024 May 15: June 25: S-4 Filed prelim
Slide 32: Appendix
Appendix 32
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures The non-GAAP financial measures presented in this report may differ from similarly-titled measures used by other companies. The non-GAAP financial measures are not intended to be used as a substitute for, nor should they be considered in isolation of, financial measures p
Slide 34: Reconciliation of JBT Income from Continuing Operations to Adjusted EBITDA
Reconciliation of JBT Income from Continuing Operations to Adjusted EBITDA (In millions) TTM as of 9/30/24 Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 Income from continuing operations $ 144.2 $ 38.1 $ 30.7 $ 22.7 $ 52.7 $ 31.1 Income tax provision 20.0 9.5 (3.3) 8.1 5.7 4.6 Interest expense, net (9.8)
Slide 35: Reconciliation of JBT Cash Provided by Operating Activities to Free Cash Flow
Reconciliation of JBT Cash Provided by Operating Activities to Free Cash Flow Q3 2024 (In millions) YTD TTM Cash provided by operating activities $ 103.9 $ 82.5 Less: Capital expenditures 27.9 36.8 Plus: Proceeds from disposal of assets 0.9 1.8 Plus: Pension contributions 2.3 3.2 Plus: income taxes