Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — The Manitowoc Company — Midwest IDEAS Conference 2024
25 slides from Manitowoc Company, Inc. (the)'s conference presentation, Aug 28, 2024
Slide 1: The Manitowoc Company, Inc. – Midwest IDEAS Conference
The Manitowoc Company, Inc. Midwest IDEAS Conference August 28, 2024 Chicago, IL Aaron Ravenscroft President & CEO
Slide 2: Forward-Looking Statements
Forward-Looking Statements 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, and are subject to uncertainty and changes in circum
Slide 3: Company Overview
Company Overview MEAP • 2023 Revenue: $2.2B 16% EURAF 30% • 2023 Adjusted EBITDA(1): $175M (7.9% of sales) Sales by • 2023 Adjusted ROIC(1): 11.1% Geography(3) • 2023 Net Leverage Ratio(2): 1.9x AMERICAS • Global footprint 54% • Strong brand loyalty • Large installed base and growth of accretive aft
Slide 4: Manitowoc's Evolution Since 2016
Manitowoc’s Evolution Since 2016 2016 2020 Began Implementing 2022 Became a standalone COVID-19 pandemic – good CRANES+50 Acquired Honnen Equipment’s crane Company; stress test crane assets; opened Spain Launched The service location Manitowoc Way 2019 2021 2023 Refinanced debt Acquired Aspen Equipm
Slide 5: Our Culture: The Manitowoc Way
Our Culture: The Manitowoc Way ENGAGE EMPLOYEES ON MULTIPLE LEVELS • Execute kaizens • Drive safety & environmental initiatives • Foster employee development INNOVATE OUR PRODUCT & SERVICE OFFERINGS • 37 new or refreshed models launched since January 2021 • Global approach to used sales • Expand fin
Slide 6: Building Momentum on Breakthrough Initiatives
Building Momentum on Breakthrough Initiatives Aspirational Targets Grow EU Grow our Leverage • $3.0B Revenue Expand Tower Belt & Road All-Terrain Aftermarket Crane Presence in North Crane NPD • $1.0B Non-new machine sales Rental & (Middle to Grow Aftermarket East focus) America Aftermarket • 12% Adj
Slide 7: Expand Aftermarket in North America
Expand Aftermarket in North America 2021 – 2023 Progress Rental Fleet Services • Acquired H&E Crane business (MGX) and Aspen Equipment Full-Service in 2021 Capabilities • Added 3 new branch locations • Grew service technician Parts Sales headcount from 117 to over 150(1) Remanufacturing • Launched Q
Slide 8: Grow EU Tower Rental & Aftermarket
Grow EU Tower Rental & Aftermarket 2021 – 2023 Progress Rental Fleet • 160 units in rental fleet Services • Grew rental fleet OEC by $28 Full-Service million Capabilities • Grew to 14 service locations and 107 service technicians Parts Sales • 56 units sold out of rental fleet • 202 used trade-ins s
Slide 9: Non-New Machine Sales Mix
Non-New Machine Sales Mix 2021: $449M TTM June 2024: $603M 2% 2% 3% 2% 4% 5% 20% 17% 63% 59% 9% 14% GROSS MARGINS ~35% 9
Slide 10: Growing Aftermarket Business
Growing Aftermarket Business Non-New Machine Sales • Parts & Service $603M • Rent-to-Own (RPO) +34% • Rentals $449M • Used sales • Crane remanufacturing • Training services • Digital solutions 2021 TTM June 2024 CONTINUED GROWTH OF RECURRING, MARGIN ACCRETIVE AFTERMARKET BUSINESS CONTINUED GROWTH OF
Slide 11: Global MegaTrends Fuel Crane Renaissance
Global MegaTrends Fuel Crane Renaissance Global Investments in Energy Higher Commodity Generation and Distribution Prices U.S. Infrastructure Bill & Saudi Vision 2030 CHIPS Investments European Housing Aging Crane Fleets Market Demand Need Refresh CRANE REPLACEMENT DEMAND EXPECTED TO ACCELERATE LARG
Slide 12: Global MegaTrends Fuel Crane Renaissance
Global MegaTrends Fuel Crane Renaissance Total Revenue ($M) 2004 - 2008 Avg Revenue: ~$2,400 $4,000 2010 - 2013 Avg Revenue: ~$2,200 $3,000 2020 – 2023 Avg Revenue: ~$1,850 2017 - 2019 Avg Revenue: ~$1,700 $2,000 $1,000 $0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20
Slide 13: Capital Allocation Strategy
Capital Allocation Strategy Strategic Rental Fleet Growth Acquisitions Increased OEC by $62M • $180M invested in 2021 during 2021 – June 2024(1) • Robust acquisition funnel <3x Target Net Leverage 2.8x Net Leverage(2) $226M Dividend Program Total Liquidity(3) Share Repurchase(4) None currently appro
Slide 14: Focused on Improving Returns
Focused on Improving Returns GROWING AFTERMARKET INCREASES MARGINS AND REDUCES CYCLICALITY (1) Please refer to Appendix 14
Slide 15: In Conclusion
In Conclusion MTW Value Proposition • Undertaken significant “self-help” actions to achieve a reasonable ROIC • Proven track record with acquisitions and a good funnel • Positioning Company in less cyclical, higher margin aftermarket segment The Crane Cycle is poised for another boom period • Aging
Slide 16: Thank you for your interest
Thank you for your interest 16
Slide 17: Appendix
Appendix
Slide 18: The Manitowoc Way: Sustainable Business Strategy
The Manitowoc Way: Sustainable Business Strategy Updated June 24 Updated June 24 Updated June 24 BUILDING COMMUNITIES FOR CURRENT AND FUTURE GENERATIONS 18
Slide 19: Growing Aftermarket Business
Growing Aftermarket Business Initiative Progress over 3-year period ended December 31, 2023 Grow EU Tower Crane • Grew rental fleet original equipment cost (OEC) $28 million Rental & Aftermarket • Expanded rental and used crane sales by 40% Grow our Belt & Road Presence • Launched 8 Chinese-engineer
Slide 20: Aspirations
Aspirations Net Sales Non-New Machine Sales $4,000 $1,200 $1,000 $3,000 $1,000 $3,000 $2,228 $800 $2,032 $613 $1,847 $1,834 $1,720 $600 $545 $2,000 $449 $1,443 $405 $403 $376 $400 $1,000 $200 $- $- 2018 2019 2020 2021 2022 2023 Target 2018 2019 2020 2021 2022 2023 Target Adjusted EBITDA % Adjusted R
Slide 21: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Dollars in millions Note: See full reconciliation of GAAP and Non-GAAP financial measures contained in our quarterly and full-year earnings releases 21
Slide 22: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Dollars in millions Note: See full reconciliation of GAAP and Non-GAAP financial measures contained in our quarterly and full-year earnings releases 22
Slide 23: Appendix – Adjusted ROIC Calculation
Appendix – Adjusted ROIC Calculation Trailing Twelve Year Ended Year Ended Year Ended Months December 31, December 31, December 31, June 30, 2021 2022 2023 2024 Operating income (loss) $ 46.5 $ (93.0) $ 92.4 $ 55.9 Amortization of intangible assets 1.4 3.1 3.2 3.0 Restructuring (income) expense (1.1
Slide 24: Crane Types
Crane Types All-terrain (AT) Boom Truck (BT) Crawler (CR) Rough-terrain (RT) Tower Crane (TC) Truck-mounted (TM) 24
Slide 25: Additional information: Ion Warner – SVP Marketing & Investor Relations
Additional information: Ion Warner – SVP Marketing & Investor Relations O +1 414-760-4805 M +1 717-414-1813 ion.warner@manitowoc.com www.manitowoc.com
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