Slide 1: Twin Disc, Incorporated
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™
Slide 2: Safe Harbor Statement
February 3, 2009 Twin Disc, Incorporated Safe Harbor Statement This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management’s current expectations that are based on assump
Slide 3: Twin Disc At A Glance
February 3, 2009 Twin Disc, Incorporated Manufacturing Manufacturing location (# of facilities in each location) Company owned distribution/service location Purchasing/sourcing offices Twin Disc At A Glance • Founded in • Headquartered in Racine, WI • 1,000+ employees • FY08 Revenues of $332M • We a
Slide 4: Corporate Profile - Market Diversity: Pleasure Craft Market
February 3, 2009 Twin Disc, Incorporated Corporate Profile - Market Diversity Pleasure Craft Market: • Target Markets: High speed planing and displacement yachts from 50’ to 150’, diesel powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water Jets, Contro
Slide 5: Corporate Profile - Market Diversity: Work Boat Market
February 3, 2009 Twin Disc, Incorporated Corporate Profile - Market Diversity Work Boat Market: • Target Markets: planing and displacement vessels from 30’ to 250’, diesel powered • Products: Transmissions, Propellers, MCD’s, Water Jets, Controls • Channels: Engine OEMs & dealers, boat builders & di
Slide 6: Corporate Profile - Market Diversity: Patrol Boat Market
February 3, 2009 Twin Disc, Incorporated Corporate Profile - Market Diversity Patrol Boat Market: • Target Markets: military, patrol and coast guard vessels from 30’ to 90’, diesel powered • Products: Transmissions, Surface Drives, Propellers, Steering/Thruster/Trim Systems, Water Jets, Controls • C
Slide 7: Marine Transmissions, Propulsion & Boat Management Systems
February 3, 2009 Twin Disc, Incorporated QuickShift® Transmissions Electronic Controls Bow Thrusters Anchor Winches Gangways Trim Tabs, Stern Thrusters Power Steering Marine Transmissions, Propulsion & Boat Management Systems Corporate Profile - Market Diversity
Slide 8: Corporate Profile - Market Diversity: Industrial Transmissions
February 3, 2009 Twin Disc, Incorporated Corporate Profile - Market Diversity Industrial Transmissions: • Target Market: Off-highway and all-terrain specialty vehicles, diesel powered • Products: Powertrain components - - 400 to 3,000 HP • Channel: OEM vehicle mfrs. • Customers: BAE, Oshkosh, Tatra
Slide 9: Corporate Profile - Market Diversity: Industrial Products
February 3, 2009 Twin Disc, Incorporated Corporate Profile - Market Diversity Industrial Products: • Target Market: Heavy duty industrial disconnect applications • Products: Mechanical & hydraulic clutches, PTOs & pump mount drives, 100 - 2,500 HP • Channels: Distribution & OEMs • Customers: Bandit,
Slide 10: Corporate Profile - Geographic Diversity
February 3, 2009 Twin Disc, Incorporated 48% International Sales 61% International Sales USA Italy Rest of World Corporate Profile - Geographic Diversity
Slide 11: What Differentiates Us?
February 3, 2009 Twin Disc, Incorporated What Differentiates Us? • Technology – Land-Based • 8500 Series • “Pump & Roll” • “Legacy” Contracts • Electronic Control Systems • Global Distribution and Service Network • Product/Market & Geographic Diversity • Niche Market Focus • 90 Years of Proven Appli
Slide 12: Managing Our Cost Structure: Investing in Core Competencies
February 3, 2009 Twin Disc, Incorporated Managing Our Cost Structure Investing in Core Competencies
Slide 13: Managing Our Cost Structure: Global Sourcing
February 3, 2009 Twin Disc, Incorporated Lower Cost Low Cost Sourcing Offices Managing Our Cost Structure Global Sourcing
Slide 14: FY 2009 First Half Highlights
February 3, 2009 Twin Disc, Incorporated FY 2009 First Half Highlights • Major Markets Experience Varied Results – Shipment and order weakness emerged for mega yachts during second quarter – Demand for oil and gas transmissions continued at soft levels – Increased shipments and demand for industrial
Slide 15: Net Sales & Net Earnings (Fiscal Year)
February 3, 2009 Twin Disc, Incorporated $ millions $ millions * See Appendix III for reconciliation of TTM (trailing 12 month) figures to reported figures. Net Sales & Net Earnings (Fiscal Year)
Slide 16: Net Sales & Net Earnings (Second Fiscal Quarter)
February 3, 2009 Twin Disc, Incorporated $ millions $ millions Net Sales & Net Earnings (Second Fiscal Quarter)
Slide 17: Net Sales & Net Earnings (First Fiscal Half)
February 3, 2009 Twin Disc, Incorporated $ millions $ millions Net Sales & Net Earnings (First Fiscal Half)
Slide 18: EBITDA
February 3, 2009 Twin Disc, Incorporated EBITDA (See Appendices I & II for note on non-GAAP Financial Disclosures and a reconciliation of net earnings to EBITDA) $ millions % sales * See Appendix III for reconciliation of TTM figures to reported figures.
Slide 19: Looking Ahead
Twin Disc, Incorporated Looking Ahead
Slide 20: Corporate Six Month Backlog
February 3, 2009 Twin Disc, Incorporated FY04 FY05 FY06 FY07 $ millions FY08 FY09 Corporate Six Month Backlog (Orders to be shipped in the next 6 months)
Slide 21: Fiscal Year 2009/10 Outlook
February 3, 2009 Twin Disc, Incorporated Fiscal Year 2009/10 Outlook • Cautious outlook in face of global turmoil • Certain key markets will experience weakness – Oil and gas and mega yacht markets softness expected to continue into next fiscal year • Other key markets expected to remain stable – Co
Slide 22: Fiscal Year 2009/10 Outlook
February 3, 2009 Twin Disc, Incorporated Fiscal Year 2009/10 Outlook • Technology differentiation/new products • Opportunity for operating leverage continues – Expanding global outsourcing – Investing in core competencies • Active Acquisition Program • Active stock buyback program (Board authorized
Slide 23: Twin Disc, Incorporated
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™
Slide 24: Appendices
Twin Disc, Incorporated Appendices
Slide 25: Non-GAAP Financial Disclosures
February 3, 2009 Twin Disc, Incorporated Non-GAAP Financial Disclosures Financial information excluding the impact of certain significant items in this presentation are not measures that are defined in U.S. Generally Accepted Accounting Principles (“GAAP”). These items are measures that management b
Slide 26: Appendix II: Reconciliation of Net Earnings to EBITDA
February 3, 2009 Twin Disc, Incorporated * See Appendix III for reconciliation of TTM figures to reported figures. Appendix II Reconciliation of Net Earnings to EBITDA
Slide 27: Appendix III: Reconciliation of TTM Data to Reported Quarterly Figures
February 3, 2009 Twin Disc, Incorporated Appendix III Reconciliation of TTM Data to Reported Quarterly Figures
Slide 28: Appendix IV: Fiscal Year Condensed Consolidated Statements of Operations
February 3, 2009 Twin Disc, Incorporated Appendix IV Fiscal Year Condensed Consolidated Statements of Operations
Slide 29: Appendix V: Second Fiscal Quarter Condensed Consolidated Statements of Operations
February 3, 2009 Twin Disc, Incorporated Appendix VI 2 nd Fiscal Quarter Condensed Consolidated Statements of Operations
Slide 30: Appendix VI: Net Sales by Segment
February 3, 2009 Twin Disc, Incorporated $243 $219 $186 $317 $332 Appendix VI Net Sales by Segment
Slide 31: Appendix VII: Net Earnings by Segment (before Corporate Expense)
February 3, 2009 Twin Disc, Incorporated Appendix VII Net Earnings by Segment (before Corporate Expense)
Slide 32: Appendix VIII: Operating Cash Flows
February 3, 2009 Twin Disc, Incorporated $ millions % sales Appendix VIII Operating Cash Flows
Slide 33: Twin Disc, Incorporated
Twin Disc, Incorporated WE PUT HORSEPOWER TO WORK ™