Alamo Group, Inc. · NYSE:ALG
Alamo — Investor Presentation (November 2016)
27 slides from Alamo's investor presentation, Nov 18, 2016
Slide 1: Investor Presentation November 2016
Investor Presentation November 2016
Slide 2: Safe Harbor
Safe Harbor This presentation contains statements that may be considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are not historical facts and represent only the Company’s beliefs and expectations. Forwa
Slide 3: Corporate Profile
Corporate Profile Operating Highlights • Three Operating Divisions • Industrial • Agricultural • Europe • 24 manufacturing locations in the • Founded in 1969 U.S., Canada, England, France, • Corporate Headquarters Australia and Brazil Seguin, Texas • Approximately 3,000 employees • IPO 1993 (NYSE: A
Slide 4: About Alamo Group
About Alamo Group Alamo Group is a global leader in the design and manufacture of high quality agricultural equipment for farms and ranches and infrastructure maintenance equipment for governmental and industrial markets • Products include, among others: • tractor mounted mowers • backhoes • vegetat
Slide 5: Corporate Governance
Corporate Governance Alamo Group is dedicated to enhancing shareholder value over the long term in a manner that is consistent with high ethical standards and good corporate governance. We have implemented policies and procedures that are designed to support this commitment which apply to all of our
Slide 6: Business Overview
Business Overview $436 $298 $230 $265 $197 $178 $204 $203 $219 $214 $95 $181 $182 $161 $170 $165 $165 $189 5
Slide 7: Sales by Division
Sales by Division (U.S. $ millions) $880 $839 900 800 $682 700 $608 $633 $542 $436 $499 $436 Industrial 600 $264 $298 $298 500 $231 $230 $265 $197 $197 400 $178 Agricultural 300 $207 $204 $204 $219 $203 $214 $219 $214 $208 $184 $95 $181 200 Europe $182 $161 $165 $170 $165 $189 $165 $189 100 $161 $17
Slide 8: Industrial Division
Industrial Division • Tractor mounted mowers, street sweeping equipment, excavators, vacuum trucks, snow removal equipment and replacement parts • Equipment for maintenance on and around highways, airports, military installations, recreational areas, commercial landscape and other specialty markets
Slide 9: Industrial Products
Industrial Products Gradall Wheeled Excavator Tiger TrucKat Boom Arm Mower Alamo Industrial Twin Side and Rear Mowers Super Products Vacuum Truck Schwarze Mechanical Street Sweeper Henke Motor Grader Mounted Snowplow 8
Slide 10: Agricultural Division
Agricultural Division • Tractor powered mowers, tillage implements, post hole diggers, scraper blades, rock pickers, front- end loaders and backhoes, snow blowers, zero turn radius mowers, hay rakes and tedders, other ag implements, related replacement parts and other agricultural aftermarket wear a
Slide 11: Agricultural Products
Agricultural Products Earthmaster Vertical Tillage Implement Bush Hog 20’ Rotary Cutter Schulte Rock Picker Schulte Offset Rotary Cutter Bush Hog Hay Rake Rhino 15’ Flex Wing Cutter 10
Slide 12: European Division
European Division • Hedge and grass cutters, front-end loaders and backhoes, mowers, cultivators, and other ag implements, vacuum trucks, jetting systems, trenchers and related replacement parts • End-Users • Agricultural markets • Governmental agencies • Contractors • Other specialty markets • Sale
Slide 13: European Products
European Products Remote Control Mower Rivard Vacuum Truck Rousseau Boom Arm Mower Spearhead Rotary Cutter Bomford Embankment Mower Kellands Self-Propelled Sprayer 12
Slide 14: Strategic Objectives Drive Shareholder Value
Strategic Objectives Drive Shareholder Value Continuous Operational Improvement Organic Strategic Growth Acquisitions 13
Slide 15: Continuous Operational Improvement
Continuous Operational Improvement Our objective is to continuously improve our operating efficiencies Plant Consolidations • The Company has closed and consolidated 9 manufacturing locations in the past 10 years Investments in Technology • The Company has continually invested in more automated equi
Slide 16: Results of Operational Improvement
Results of Operational Improvement Sales Per Employee 2008 $218,000 2015 $286,000 +31% 15
Slide 17: Continuous Operational Improvement
Continuous Operational Improvement Alamo Group has a global manufacturing presence in close proximity to our major markets. Rhino - Gibson City, Illinois McConnel - Ludlow, England The Company sources raw Our manufacturing materials and components capabilities provide us better globally to ensure co
Slide 18: Organic Growth
Organic Growth Our objective is to grow organically at rates in excess of core market growth rates • Product development Organic • Geographical expansion • Cross selling opportunities Growth • Strength of multiple distribution Drivers networks • Pricing leadership 17
Slide 19: Strategic Acquisitions
Strategic Acquisitions Our objective is to acquire businesses or products that command or have potential to be major players in their niche markets and are complementary to Alamo’s existing range • Consolidation of similar products in current markets Types of • New products that are complementary to
Slide 20: Alamo Acquisitions
Alamo Acquisitions Type of Acquisition Acquisitions Schulte, Twose, Valu-Bilt, Rousseau, Tenco, Nite-Hawk, Bush Hog, Market Share Consolidation Spearhead, Super Products, Wausau-Everest Complementary Products Schwarze, Twose, Schulte, Gradall, for Existing Markets Vacall, Henke, Tenco, Kellands Inte
Slide 21: Acquisitions Timeline
Acquisitions Timeline We have completed 21 acquisitions since 2000 20
Slide 22: A Proven Recipe for Growth…
A Proven Recipe for Growth… Continuous Continuous Operational Improvement Continuous Operational Improvement leads to greater efficiency and controls Operational provides financial strength to fund cost to aid Organic Growth Improvement Strategic Acquisitions Organic Growth provides greater Strategi
Slide 23: Why Alamo, Why Now?
Why Alamo, Why Now? Leadership position in Stability in Long-term government niche markets growing demand spending on for agricultural infrastructure attachments maintenance An integrated strategy for long- Financial term revenue strength to and earnings support strategic growth objectives An incent
Slide 24: Income Statement
Income Statement Nine Months Ended Fiscal Year Ended (in U.S. $ thousands) 9/30/2016 9/30/2015 12/31/2015 12/31/2014 12/31/2013 Revenue $ 639,226 $ 655,146 $ 879,577 $ 839,055 $ 682,090 Gross Margin $ 157,166 $ 153,711 $ 202,448 $ 189,228 $ 158,510 % of Revenue 24.6 % 23.5 % 23.0 % 22.6 % 23.2 % Ope
Slide 25: Balance Sheet
Balance Sheet Period Ended Fiscal Year Ended (in U.S. $ thousands) 9/30/2016 9/30/2015 12/31/2015 12/31/2014 12/31/2013 Current Assets $ 392,695 $ 404,207 $ 362,886 $ 393,302 $ 336,953 Total Assets $ 624,882 $ 644,922 $ 603,503 $ 632,886 $ 438,476 Current Liabilities $ 84,593 $ 100,271 $ 85,024 $ 89
Slide 26: Contact Information
Contact Information Corporate Office 1627 East Walnut St., Seguin, Texas 78155 Ron Robinson, President & CEO Phone: 830-372-9615 Email: rrobinson@alamo-group.com Dan Malone, Executive Vice President & CFO Phone: 830-372-9581 Email: dmalone@alamo-group.com Bob George, Investor Relations Director, Vic
Slide 27: We clear the way ...
We clear the way ... www.alamo-group.com 26