Lindsay Corporation · NYSE:LNN
Lindsay — Investor Day (November 2020)
113 slides from Lindsay's investor day presentation, Nov 17, 2020
Slide 1: Investor Day November 17, 2020
Investor Day November 17, 2020 Exhibit 99.1
Slide 2: Investor Event Opener
ZALINDSAY™ | Investor Event Opener
Slide 3: 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 4: Investor Day Agenda
Investor Day Agenda Introduction 10:00 – 10:05 Brian Ketcham, SVP and CFO Strategic Overview 10:05 – 10:20 Tim Hassinger, President and CEO Growth Through Innovation 10:20 – 10:40 Randy Wood, COO Q&A 10:40 – 11:10 Irrigation 11:10 – 11:25 Gustavo Oberto, President – Irrigation Infrastructure 11:25 –
Slide 5: Lindsay – Tim Hassinger, President and CEO
Lindsay Tim Hassinger, President and CEO
Slide 6: Key Messages for the Day
KEY MESSAGES FOR THE DAY Lindsay – Delivering Customer-First Innovation Customer-First Innovation to Drive Growth and Outperform the Cycle 3 2 1 Two market leading business platforms Successfully executed our transformation Building a powerful innovation engine
Slide 7: Agenda
Agenda Lindsay today: Two strong platforms Our transformation: Foundation for growth Clear strategy: Innovation-driven growth
Slide 8: Global Provider of Irrigation and Infrastructure Solutions
Global Provider of Irrigation and Infrastructure Solutions 1955 U.S. Irrigation International Irrigation Infrastructure Headquarters 46% 26% 28% Omaha, Nebraska Founded 9 Global Mfg. Locations ~1,125 Employees ~$1.0B Market cap * As of 8/31/2020 Lindsay Revenue Mix (Fiscal 2020)
Slide 9: Two Strong Platforms Positioned to Win
Two Strong Platforms Positioned to Win 2 1 3 Differentiated technology / capabilities Global network with deep expertise Addressing highly relevant global megatrends
Slide 10: Agenda
Agenda Lindsay today: Two strong platforms Our transformation: Foundation for growth Clear strategy: Innovation-driven growth
Slide 11: Our Transformation – Foundation for Growth
Our Transformation – Foundation for Growth Initiated Strategic Transformation Established Businesses Innovation-Driven Growth 2018 – 2020 Pre-2018 2020+ Launched “Foundation for Growth” – expanded technological capabilities, renewed culture Accelerating technology differentiation, continuous improve
Slide 12: Organizational Health – Significant Transformation
Organizational Health – Significant Transformation Our Behaviors Build trust Unlock creativity Customer-first innovation One Lindsay 2018 2019 2020 Quartile First Second Third Fourth Organizational Health
Slide 13: Delivered Operating Margin Commitment
Delivered Operating Margin Commitment FY2017 FY2020 Established centralized sourcing and shared services Consolidated and leveraged manufacturing footprint Enhanced commercial excellence Divested 4 non-core businesses 11.4% 7.8% Fueled by Foundation for Growth Expanded Margin by 360 bps
Slide 14: Agenda
Agenda Lindsay today: Two strong platforms Our transformation: Foundation for growth Clear strategy: Innovation-driven growth
Slide 15: Our Vision
Our Vision To become the innovation and market leader through employee empowerment and superior execution.
Slide 16: Our Shift to Continuous Improvement
Our Shift to Continuous Improvement Past Current Customer focus Strong Strong Organizational health Third quartile First quartile Sourcing / shared services Autonomous Leveraged Manufacturing By business Leveraged facilities Technology / innovation Competitive Leader
Slide 17: Strong Commitment to Sustainable Practices
Strong Commitment to Sustainable Practices Our mission is to provide solutions that conserve natural resources, enhance the quality of life for people, and expand our world’s potential. Investing in sustainable technologies Improving our operational footprint Empowering and protecting our people Eng
Slide 18: Executing Three Point Growth Strategy
Executing Three Point Growth Strategy 1 2 3 Driving continuous improvement Widen irrigation technology leadership position Increase Road Zipper market penetration People • Processes • Profitability Strong Foundation
Slide 19: Growth Strategy: Driving Continuous Improvement
GROWTH STRATEGY 1 Driving Continuous Improvement Innovation Process Foundation for Growth Lindsay Production System Business Central Business Process Management Integrated Business Planning
Slide 20: Growth Strategy: Widen Irrigation Technology Leadership Position
GROWTH STRATEGY 2 Widen Irrigation Technology Leadership Position LINDSAY Ahead of the Industry Satellite Imagery Integration Daily Irrigation Scheduling Strategic Partnerships Competitors Agronomic Analysis Predictive Analytics
Slide 21: Growth Strategy: Increase Road Zipper System Market Penetration
GROWTH STRATEGY 3 Increase Road Zipper System Market Penetration Expands Addressable Market Focusing Earlier in Customer Project Timeline Planning/Design Existing Problem Lindsay “Shift Left” Strategy Grow sales funnel Increase leasing business Expand global reach Innovative products Expanded Market
Slide 22: Acquisitions: A Contributor to Growth
Acquisitions: A Contributor to Growth Divested four non-core businesses Consolidated and leveraged our manufacturing footprint Enhanced commercial excellence Established centralized sourcing and shared services Shifting to Growth Acquired Net Irrigate, LLC – April 2020 Initiated Strategic Transforma
Slide 23: Clear Financial Goals Over the Next 5 Years
Organic Revenue Growth >5% Operating Margin >12% ROIC >10% EPS Growth >10% Clear Financial Goals Over the Next 5 Years (Annual Averages)
Slide 24: Key Messages for the Day
KEY MESSAGES FOR THE DAY Lindsay – Delivering Customer-First Innovation Customer-First Innovation to Drive Growth and Outperform the Cycle 3 2 1 Two market leading business platforms Successfully executed our transformation Building a powerful innovation engine
Slide 25: Innovation Leadership Driving Growth – Randy Wood, COO
Innovation Leadership Driving Growth Randy Wood, COO
Slide 26: Innovation Opener
. ZALINDSAY™ | Innovation Opener
Slide 27: Agenda
Agenda Record of innovation leadership Our innovation engine – delivering results Leveraging our technology capabilities
Slide 28: Innovation Leadership: Addressing Global Megatrends
Innovation Leadership: Addressing Global Megatrends Capitalizing on global megatrends Key Trends Food Security Water Scarcity Land Availability Mobility Safety Reducing Emissions Labor Savings
Slide 29: A Legacy of Industry Firsts
A Legacy of Industry Firsts 1994 2004 2012 2015 2017 R-MAC is first cellular-based remote control solution FieldSENTRY is the first web-based controller for mechanized irrigation FieldNET is the first native app (iOS & Android) in mechanized irrigation Pivot Control is the first control retrofit tha
Slide 30: Agenda
Agenda Record of innovation leadership Our innovation engine – delivering results Leveraging our technology capabilities
Slide 31: The New Innovative Lindsay: Then + Now
The New Innovative Lindsay: Then + Now Present Customer-first, collaborative Centralized Expanding Accelerating Past Customer-first, siloed Decentralized Competitive Competitive Growth via innovation Investment Process Technology
Slide 32: Technology Adoption Growth Opportunities
Technology Adoption Growth Opportunities Current Center Pivot Telemetry Market Penetration Opportunities to Drive Organic Growth Machine analytics Agronomic imagery Variable rate application Irrigation scheduling Monitoring Control 35%+ Installed Base Add-ons:
Slide 33: Accelerating Innovation Investment
Accelerating Innovation Investment R&D Spending Patent Activity Last 3 Years 3X increase 13% 38% Core Engineering Innovation
Slide 34: Proven Innovative Solutions: FieldNET Advisor Results
RESULTS – CASE STUDY Proven Innovative Solutions: Delivering Tangible Value FieldNET Advisor Results 3% Situation Customer North Central Nebraska Irrigator Challenges Maximize yield potential of crop genetics Conserve water and energy resources Solution FieldNET Advisor managed irrigation recommenda
Slide 35: Growth in Device Subscriptions
RESULTS Growth in Device Subscriptions Innovation Total Subscriptions 20% CAGR Renewal rates New device growth YoY Growth last two seasons versus market ≈97% 2X Outgrowing
Slide 36: Agenda
Agenda Record of innovation leadership Our innovation engine – delivering results Leveraging our technology capabilities
Slide 37: Innovation Priorities Going Forward
Innovation Priorities Going Forward Leverage common technology stack Breakthrough Infrastructure innovation Breakthrough Irrigation innovation 1 2 3
Slide 38: Priority #1: Leverage Common Technology Stack
PRIORITY #1 Leverage Common Technology Stack for All Customer Platforms Irrigation Lighting Oil & Gas Rail Infrastructure Software | Firmware | Hardware | Manufacturing Common Technology Stack
Slide 39: Priority #2: Breakthrough Infrastructure Innovation – RoadConnect
PRIORITY #2 Breakthrough Infrastructure Innovation – RoadConnect Lindsay will leverage existing hardware and capabilities to participate in the growing road safety IIOT market Situation Status Today DoT’s / municipalities have limited notification when a roadside safety device has been impacted This
Slide 40: Priority #3: Breakthrough Irrigation Innovation – Agronomic Imagery
Agronomic Imagery PRIORITY #3 Breakthrough Irrigation Innovation – Agronomic Imagery * Assuming issues detected on 1 in 10 pivots. Crop Health - June Situation Customer Corn Grower Challenges Plugged sprinklers go undetected Crop suffers stress and does not reach full yield potential Solution Agrono
Slide 41: Priority #3: IIOT Machine Analytics
PRIORITY #3 Breakthrough Irrigation Innovation – IIOT Machine Analytics Planned maintenance tracking Component level predictive analytics Real-time diagnostics and automated service scheduling The Technology Exists and is Deployed in Other Adjacent Industries Improve machine capabilities through IIO
Slide 42: Priority #3: Smart Pivot
PRIORITY #3 Breakthrough Irrigation Innovation – Smart Pivot Creating a new & disruptive machine platform + IIOT Machine Monitoring & Analytics Advanced Agronomic Imagery
Slide 43: Smart Pivot Demo
Z”LINDSAY™ Smart Pivot Demo
Slide 44: Priority #3: Smart Pivot
PRIORITY #3 Breakthrough Irrigation Innovation – Smart Pivot Lindsay will develop machine analytics as a core innovation & leverage partnerships for agronomic imagery Situation Status Today Customers need more visibility of in-field operations to manage risk Machine analytics have been prevalent in
Slide 45: Innovation Driven Growth – Clear Goals
Innovation Driven Growth – Clear Goals FieldNET® Pivot Watch™ Zimmatic® Control Panels Expansion of FieldNET® Advisor to 21 crops and 18 countries Smart Pivot Road Connect Vitality Index – New Product Revenue as % of Total Revenue Includes annual revenues for 3 years from launch date Excludes cannib
Slide 46: In Summary: Innovation Driving Growth
IN SUMMARY Innovation Driving Growth 3 2 1 Long record of innovation leadership Solving global problems efficiently and sustainably for customers Accelerating investment in our innovation engine Bringing disruptive technology to the market faster New products driving growth Projects in place and adv
Slide 47: Q&A Session
”ZLINDSAY™ | Q&A Session
Slide 48: Irrigation - Innovating and Expanding to Drive Growth
Irrigation - Innovating and Expanding to Drive Growth Gustavo Oberto, President
Slide 49: Agenda
The business today – a differentiated platform Capitalizing on key megatrends Growth initiatives Agenda
Slide 50: Global Leader in Mechanized Irrigation Systems
Global Leader in Mechanized Irrigation Systems $343.5M FY ’20 sales $40.2M FY ‘20 operating income – up 35% 11.7% FY ‘20 operating margin >12M irrigated acres >90 countries 6 manufacturing locations >350 exclusive dealers globally Sold through
Slide 51: Delivering the Most Advanced Mechanized Irrigation Solutions
LINDSAY DIFFERENTIATION Delivering the Most Advanced Mechanized Irrigation Solutions Center Pivot Systems Lateral Systems Variable Rate Irrigation Hose Reels Advanced Telemetry & IoT
Slide 52: An Option for Every Grower
An Option for Every Grower 1 Peace of mind DIY installation Energy efficient (Solar) Low-cost entry point Monitor only with FieldNET Pivot Watch™ 2 Crop water usage forecast Retrofit or new applications Reduce labor & travel Lower operating costs Monitor & Control with FieldNET remote control 3 Dail
Slide 53: Agenda
Agenda The business today – a differentiated platform Capitalizing on key megatrends Growth initiatives
Slide 54: Market Trends Play to our Strengths as Irrigation Pioneer
Revolutionizing agricultural irrigation through innovative, sustainable solutions for growers across the globe Market Trends Play to our Strengths as Irrigation Pioneer Megatrends Global food security Sustainability Farm economics Ag technology explosion Leveraging Our Competitive Advantages Differe
Slide 55: Trend #1: Food Security
Growth in World Population 2017 7.6B 2050 9.8B TREND #1: FOOD SECURITY Global Food Security – Producing More Food while Conserving Resources Requires more productive and sustainable farming practices 20% of irrigated acres produce 40% of the food Increase in Food Production Required by 2050 +70% Sou
Slide 56: Trend #2: Sustainability – Shift to Mechanized Irrigation
TREND #2: SUSTAINABILITY Shift to Mechanized Irrigation Delivers Significant Advantages +1,200 bps Pivots / Laterals Gravity Other Sprinkler Drip / Micro Water savings Improved yield Reduced labor ü ü ü Mechanized Irrigation Advantages: Evolution in Percent of Irrigated Acres Using Mechanized Irriga
Slide 57: Trend #2: Lindsay – Meeting the Sustainability Challenge
TREND #2: SUSTAINABILITY Lindsay – Meeting the Sustainability Challenge Water Energy Source: World Resources Institute By 2022, Lindsay Will Help Farmers Save… 700 billion gallons of water: enough to fill a lake which is 10% larger than the Lake of the Ozarks >1 billion kilowatt hours of energy: equ
Slide 58: Trend #3: Challenging Farm Economics Driving New Solutions
TREND #3: FARM ECONOMICS Challenging Farm Economics Driving New Solutions Net farm income Federal government direct farm program payments Farm finances Trade disputes Global competition Need for NEW solutions
Slide 59: Irrigation Significantly Improves Yield and ROI
Source: USDA TREND #3: FARM ECONOMICS Irrigation Significantly Improves Yield and ROI 12-Year Average 195 135 190.1 58.5 Drought +225% +44% Irrigated Dryland Nebraska Corn Yield – Irrigated vs. Dryland Bushels per acre
Slide 60: Irrigated Production Payback – Case Study
TREND #3: FARM ECONOMICS Irrigated Production Payback – Case Study Benefits 45% Situation Customer Corn Grower Challenges Cannot count on rainfall alone to generate high or consistent yield Drought can wipe out an entire season Solution Mechanized irrigation provides the most cost effective and effi
Slide 61: Trend #4: Ag Tech Explosion is Underway
TREND #4: AG TECH Ag Tech Explosion is Underway The Changing Ag Tech Landscape Digital agronomy and production Precision irrigation IoT monitoring platforms Planning and farm management Farm management information systems Small holder farms Market access and financing Finance and insurance Farmland
Slide 62: How Technology Drives Market Share
TREND #4: AG TECH How Technology Drives Market Share High Correlation Between FieldNET Penetration and Zimmatic Market Share Every 1% increase in FieldNET penetration correlates with a ~0.68% boost in local Zimmatic market share FieldNET penetration Zimmatic market share +1.0% +0.68% Zimmatic Market
Slide 63: Hear It Directly From Our Customers
TREND #4: AG TECH Hear It Directly From Our Customers
Slide 64: FieldNET Advisor – Differentiated Innovation
TREND #4: AG TECH FieldNET Advisor – Differentiated Innovation Only single platform experience with remote management and agronomic information all under one roof Data-driven irrigation decisions Removes guesswork Unlocks science-based recommendations for the 86% of growers that don’t utilize any sc
Slide 65: Agenda
Agenda The business today – a differentiated platform Capitalizing on key megatrends Growth initiatives
Slide 66: Driving Growth to Outperform the Cycle
Driving Growth to Outperform the Cycle 1 Differentiating solutions and strategic partnerships to accelerate technology penetration 2 Leverage global manufacturing footprint and distribution to drive international growth 3 Accelerate organic growth through conversion and replacement opportunities
Slide 67: Growth Priority #1: Innovation and Partnerships
Competitors FieldNET renewal rate ~97% 1 Strategic Collaborations 2 Industry-leading Innovation GROWTH PRIORITY #1 Innovation and Partnerships to Accelerate Technology Adoption Lindsay Technology Solutions 174% YOY growth in new subs for FY20
Slide 68: Growth Priority #1: Technology Penetration will Drive Growth
GROWTH PRIORITY #1 Technology Penetration will Drive Growth Differentiating Solutions Outperform the cycle Pivot WatchLow cost, do-it-yourself installation FieldNET AdvisorSimple, daily irrigation recommendations Smart PivotAgronomy and machine analytics PartnershipsExpand the circle of innovation W
Slide 69: Growth Priority #2: Global Manufacturing Footprint and Distribution
GROWTH PRIORITY #2 Leverage Global Manufacturing Footprint and Distribution: Global Mechanized Irrigation Market: $1.2B $200M S. America $320M EMEA $130M Asia Pacific $550M N. America Sales / Service Center Manufacturing Addressable Market by Region
Slide 70: Growth Priority #3: Accelerate Organic Growth
GROWTH PRIORITY #3 Accelerate Organic Growth: Replacement Opportunities in North America and Conversion Opportunities Globally Replacement in North America 3% Global Conversion 285,000+ center pivot installed base in North America 9% Mechanical Other / Low Pressure 88% Gravity Fed Replacement of age
Slide 71: Irrigation Positioned to Exceed Market Growth
Key Drivers Irrigation Positioned to Exceed Market Growth Global Irrigation Revenue ~$500M Technology driven growth Global irrigation expansion Driving conversion and replacement opportunities $344M 7%+ CAGR ü ü ü Mgmt. Est. Market CAGR ~5%
Slide 72: In Summary: Innovation Will Drive Growth
IN SUMMARY Innovation Will Drive Growth We are an industry leader and true global competitor with a local presence in all key mechanized irrigation markets Market leadership in the innovation space will expand customer access and grow market share Significant organic growth opportunities exist with
Slide 73: Infrastructure – Leveraging Our Market Lead to Drive Growth
Infrastructure – Leveraging Our Market Lead to Drive Growth Scott Marion, President
Slide 74: Agenda
Agenda Our business today Growth initiatives Capitalizing on key megatrends
Slide 75: Global Provider of Road Safety Solutions
Global Provider of Road Safety Solutions Three Solutions $131.2M FY ’20 sales up 42% $43.7M FY ’20 operating income up 164% 33.4% FY ‘20 operating margin Road Zipper System® innovative moveable road barrier Road Safety Products crash cushions, end treatments, attenuators, and other road safety solut
Slide 76: Road Zipper – Delivers Significant Advantages
WHAT IS ROAD ZIPPER Road Zipper – Delivers Significant Advantages Increases road capacity Lower cost than constructing new lanes, faster implementation Improves commuter travel time Reduces carbon footprint Operates in all weather conditions Reusable ü ü ü ü ü ü Road Zipper Moveable Barrier System K
Slide 77: Road Zipper – Innovative, Cost-Effective Solution
Cost Per Lane Mile WHAT IS ROAD ZIPPER Road Zipper – Innovative, Cost-Effective Solution Tunnel Bridge Urban Freeway Rural Freeway Road Zipper System ¹ Washington State Department of Transportation, http://americandreamcoalition.org/highways/HighwayCosts.pdf $188M¹ $1.7M $11M¹
Slide 78: Agenda
Agenda Our business today Growth initiatives Capitalizing on key megatrends
Slide 79: Market Trends Play to our Strengths as Infrastructure Leader
Market Trends Play to our Strengths as Innovative Infrastructure Leader Megatrends Premier provider of innovative and customizable solutions that mobilize global populations safely and sustainably. Congestion growth Aging infrastructure Increasing safety standards Technology explosion Leveraging Our
Slide 80: Trend #1: Congestion Growth
TREND #1 Congestion Growth – Plays to Road Zipper Strengths U.S. Dept. of Transportation Key Report “Beyond Traffic 2045” U.S. population growth by 2045 Current annual cost of congestion in delays / fuel Average hours spent in traffic annually Policy Solutions Increase infrastructure capacity – buil
Slide 81: Trend #2: Aging Infrastructure
TREND #2 Aging Infrastructure – Provides Opportunity Percent of GDP Spent on Infrastructure Note 1. 2017 ASCE Infrastructure Report Card 2016 – 2025 U.S. underinvesting in infrastructure by $2T1 Big need, but fewer dollars = opportunity for Lindsay’s Road Zipper System
Slide 82: Trend #3: Increasing Safety Standards
82 TREND #3 Increasing Safety Standards Deaths on the Road Globally Road traffic as cause for deaths for children, young adults 5-29 yrs. Risk of dying in crash in low income versus high income countries #1 cause 3X higher Clear Need for Road Safety Solutions A road user will die in 0:20 Today 2,476
Slide 83: Trend #4: Technology Explosion
83 TREND #4 Technology Explosion Total market space estimated to be ~$2.5B1 Lindsay targeting asset management estimated to be ~$150M RoadConnect platform Unlimited device plug-in capability 1 U.S. Intelligent transportation systems market, 2019 The New Mobility Technology Ecosystem Large Market Opp
Slide 84: Agenda
Agenda Our business today Growth initiatives Capitalizing on key megatrends
Slide 85: Three Priorities for Growth
Three Priorities for Growth 1 Increase Road Zipper market penetration via ‘shift left’ strategy 2 Accelerate innovation to expand product offerings 3 Drive expansion into new / international markets
Slide 86: Growth Priority #1: Increase Road Zipper Penetration via 'Shift Left'
GROWTH PRIORITY #1 Increase Road Zipper Market Penetration via ‘Shift Left’ Strategy Engage with target stakeholders at design stage of project Leverage innovation to offer alternate market expansion (security, urban, etc.) “Shift Left” Strategies Goals More predictable revenue Higher growth traject
Slide 87: Customer-First Innovation – Case Study: Highways England
GROWTH PRIORITY #1 Customer-First Innovation – Case Study: Highways England UK is set to exit the EU on 12/31/20 Exit will impact travel to and from the EU Current motorway configuration estimated to cause hours of delays The Road Zipper System was deemed to be the best solution to minimize the disr
Slide 88: Large and Robust Road Zipper Funnel
GROWTH PRIORITY #1 Large and Robust Road Zipper Funnel of $800M+ Pre-qualified Leads Expected Tracking 100+ active projects Shift left has produced the strongest pipeline of projects ever Growth in lease business which will reduce lumpiness 20+ countries have active opportunities Strong pipeline of
Slide 89: Growth Priority #2: Accelerating Innovation
GROWTH PRIORITY #2 Accelerating Innovation; Mobility is the Difference Barrier provides the protection that saves lives Machine makes us unique by providing mobility Customer-first innovation More innovation coming… powered by RoadConnect Unveiling the next generation Road Zipper machine
Slide 90: Growth Priority #2: Regulatory Change Sparks Innovation
GROWTH PRIORITY #2 Regulatory Change Sparks Innovation Contractor inspired innovation with new products Customer-first innovation success U.S. road safety standards updated Required updating product portfolio
Slide 91: Growth Priority #3: Expansion Into New / International Markets
GROWTH PRIORITY #3 Drive Expansion Into New / International Markets Manufacturing $400M S. America $800M EMEA $800M Asia Pacific $2B N. America Road Zipper and road safety product commercial actions and innovations position Lindsay for growth Addressable Market by Region – Total of $4B
Slide 92: Infrastructure Set to Grow Faster than the Market
Infrastructure Set to Grow Faster than the Market $131M ~$190M Revenue Road Zipper ‘shift left’ strategy Customer-first innovations Global expansion 7%+ CAGR Mgmt. Est. Market CAGR ~4%
Slide 93: In Summary: Strong Growth Ahead
IN SUMMARY Strong Growth Ahead Infrastructure sales funnel is robust and best it has ever been Accelerate innovation to continue to provide differentiated offerings Road Zipper continued expansion into global application
Slide 94: Financial Overview – Brian Ketcham, SVP & CFO
Financial Overview Brian Ketcham, SVP & CFO
Slide 95: Agenda
Agenda Improved performance amid market challenges Balance sheet and capital allocation How we measure success
Slide 96: Strategic Execution Driving Performance Improvement
Strategic Execution Driving Performance Improvement Revenue ($ Million) Operating Margin1 Diluted EPS1 2 2 2 1. See Reg G reconciliation of GAAP operating income, net earnings and earnings per share to adjusted figures for 2018 and 2019 at end of presentation. 2. 2019 was a year of transition and tr
Slide 97: Operating Margin Target Achieved in a Challenging Ag Market
Operating Margin Target Achieved in a Challenging Ag Market Environment Establishing a new floor for operating margin Foundation for Growth 2017 2020 Divestitures Margin Improvement Initiatives Road Zipper “Shift Left” Strategy Irrigation Headwinds Increase in Corporate Cost 11.4% 7.8% +360 bps
Slide 98: Resilient and Nimble COVID-19 Response
Resilient and Nimble COVID-19 Response Financial Flexibility Strengthening our balance sheet and managing leverage. Managing operations to minimize customer disruption and ensure continuity of supply. Business Continuity Safety First Prioritizing safety with work-from-home policy, safety practices a
Slide 99: Agenda
Agenda Improved performance amid market challenges Balance sheet and capital allocation How we measure success
Slide 100: Strong Balance Sheet with Liquidity to Fund Growth
Resilient and Nimble COVID-19 Response Strong Balance Sheet with Liquidity to Fund Growth $171M Available liquidity Adequate Liquidity 1.5x Funded Debt to EBITDA leverage (3.0x covenant limit) Substantial Room with Covenant Limits No Near-Term Debt Maturities $116M Total Debt $115M Maturities due in
Slide 101: Capital Allocation Priorities
Capital Allocation Priorities Working capital to support sales growth New product development Productivity investments Align with strategic growth priorities Leverage or add to existing capabilities Deliver return on invested capital Increase annual dividends Opportunistic share repurchase 1 2 3 Sup
Slide 102: Capital Expenditures: Investing for Growth
Capital Expenditures: Investing for Growth Capex Exceeds Depreciation Last 2 Years ($ Million) 2020 Capex Components – Focused on New Products Capex Depreciation Growth/New Products 68% Productivity 13% Replacement 12% IT/Other 7%
Slide 103: Returning Capital to Shareholders
Returning Capital to Shareholders Dividend Growth (Dividends per share) Share Repurchases (Diluted shares outstanding) 15% CAGR $1.26 $0.34 12.7M 10.9M -14% Share repurchases totaling $186.3M have been made $63.7M remains available under repurchase program
Slide 104: Agenda
Agenda Improved performance amid market challenges Balance sheet and capital allocation How we measure success
Slide 105: Clear Financial Goals Over the Next Years
Clear Financial Goals Over the Next 5 Years (Annual Averages) Organic Revenue Growth >5% Operating Margin >12% ROIC >10% EPS Growth >10%
Slide 106: Key Messages
3 2 1 Successful execution of Foundation for Growth Well-positioned for growth KEY MESSAGES Successful Execution. Driving Improved Performance. Established a new floor for operating margin
Slide 107: Q&A Session
”ZLINDSAY™ | Q&A Session
Slide 108: Feedback – Quick Survey
Feedback – Quick Survey Thank you for joining us for our 2020 Investor event. We hope you found it informative. Your feedback is important to us, so we would appreciate it if you could fill out a quick survey - it should take only 2 to 3 minutes. The answers are all anonymous. Please click on this l
Slide 109: ”ZLINDSAY™
”ZLINDSAY™
Slide 110: 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 111: Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Continued)
Slide 112: 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 113: Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures (Continued)
Regulation G Reconciliation of GAAP to Non-GAAP Financial Measures LINDSAY CORPORATION AND SUBSIDIARIES RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (Continued)