Manitowoc Company, Inc. (the) · NYSE:MTW
Manitowoc Company, Inc. (the) — The Manitowoc Company — Stifel 2023 Cross Sector Insight Conference
25 slides from Manitowoc Company, Inc. (the)'s conference presentation, Jun 7, 2023
Slide 1: Stifel 2023 Cross Sector Insight Conference
Stifel 2023 Cross Sector Insight Conference June 7, 2023 Aaron Ravenscroft President & CEO Ion Warner SVP Marketing & Investor Relations
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, only speak as of the date on which they are made, an
Slide 3: The Manitowoc Company, Inc.
The Manitowoc Company, Inc. MANITOWOC CHANGES THE WAY OUR COMMUNITIES LOOK 3
Slide 4: Values & Behaviors: Safety
Safety is our #1 priority 5S is essential for maintaining a safe workplace Every injury is preventable Safety requires continuous improvement Safety is everyone's responsibility SLAM is to be used by every employee ona daily basis Everyone has the authority and responsibility to STOP unsafe work Our
Slide 5: Company Overview
Company Overview • 2022 Revenue: $2.0B • 2022 Adjusted EBITDA: $143M (7.0% of sales)2 • 2022 Net Leverage Ratio: 2.2x • Global footprint • Strong brand loyalty • Large installed base, and growing aftermarket MARKET LEADING PROVIDER OF LIFTING SOLUTIONS Source: Company filings 1 For the year ended De
Slide 6: Strategic Focus on Aftermarket
Strategic Focus on Aftermarket • Parts & Service • Rent-to-Own (RPO) • Rentals • Used sales • Crane remanufacturing • Training services • Digital solutions INCREASE NON-NEW MACHINES SALES TO $675M BY 2026 6
Slide 7: Non-new Machine Sales Dynamics
Non-new Machine Sales Dynamics Rent-to-Rent / Crane Parts & Service Rent-to-Purchase Remanufacturing Used Cranes 5-YEAR REVENUE TREND ✔✔ ✔✔✔ ✔✔ ✔ EBITDA MARGIN IMPACT1 1 Denotes relative EBITDA margin impact compared to new crane sales CHANGING FROM A PRODUCT TO A SOLUTIONS BUSINESS WITH RECURRING R
Slide 8: Manitowoc’s Vision for the Future
Aftermarket Growth Strategy Manitowoc’s Vision for the Future Grow EU Build out Reinvigorate Expand Tower Crane China and All-Terrain Aftermarket Rental & Belt & Road Crane Activities in Aftermarket Tower Crane Product North Business Business Offerings America THE MANITOWOC WAY Macro-Trends Infrastr
Slide 9: Expand Aftermarket in North America
Expand Aftermarket in North America Fleet Support Services Technician Talent Pool Parts Sales Remanufacturing $180M INVESTMENT IN ACQUISITIONS GENERATING >$30M OF ADJUSTED EBITDA 9
Slide 10: MegaTrends
MegaTrends Higher Resurgent Commodity China Demand Prices U.S. Infrastructure & Saudi Arabian CHIPS Bill Megaprojects Investments European Aging Crane Market Fleets Need Rebound Refresh MEGATRENDS FUEL CRANE RENAISSANCE 10
Slide 11: Aging Cranes Needs Refresh
Aging Cranes Needs Refresh REPLACEMENT DEMAND EXPECTED TO ACCELERATE 11
Slide 12: Long-Term Goals
Long-Term Goals Financial Metric Aspirational Target Revenue $2.5B Adj. EBITDA >$275M Key Assumptions for Aspirational Targets: ~$250M revenue from Breakthrough Initiatives (incl. acquisitions) ~$250M revenue from market growth Normalized market growth through the cycle Normalized pricing co
Slide 13: Capital Allocation
Capital Allocation Acquisitions Rental Fleet Growth • $180M invested in 2021 $30M invested over the last • Acquired Honnen Equipment’s three years <3x crane assets in 2022 Target Net Leverage 2.0x Net Leverage1 $296M Dividend Program Total Liquidity2 Share Repurchase3 None currently approved $4.1M u
Slide 14: Appendix
@anit owoc Appendix
Slide 15: Grow EU Tower Rental & Aftermarket Business
Grow EU Tower Rental & Aftermarket Business Benefits of Parts Rental Fleet Service • New sales bundles New Cranes • New customer opportunities • Recurring rental revenue Used Cranes Rental • Less cyclical • Used crane growth • Service sales expansion • Attractive returns Source: MTW estimates $3 BIL
Slide 16: The Power of Rental (Illustrative Model)
The Power of Rental (Illustrative Model) Investment/Returns Benefits • Strong EBITDA margin accretion • Rental expansion • Rental Capex: $30M1 • Parts & service growth • Annual Rental Adjusted • Used sales EBITDA: ~$5-6M • Installed base & market share growth • Cash neutral replacement cycle 1 Three
Slide 17: Build Out Belt & Road Tower Crane Business
Build Out Belt & Road Tower Crane Business • Transitioned our China factory into a regional business • Engineering and designing locally for local markets • Growing share in the Belt & Road markets GROWING OUR PRESENCE IN DEVELOPING ECONOMIES 17
Slide 18: Expand All-terrain Crane Solutions Portfolio
Expand All-terrain Crane Solutions Portfolio Filling gaps in our All-Terrain product range to grow market share Expanding technology solutions with real- time telematics with GROVE CONNECTTM Hiring additional service technicians to support growing installed base Bolstering used crane business to inc
Slide 19: The Manitowoc Way: ESG
The Manitowoc Way: ESG MSCI AA ESG RATING ESG Rating History • ESG is incorporated into our short-term incentive plan • Safety – 36-month rolling RIR has improved from 1.87 in June 2019 to 1.53 in December 2022 • Environmental – Accuvio environmental accounting software used to track our progress •
Slide 20: Financial Metrics ($millions)
Financial Metrics ($millions) Revenue & Adjusted EBITDA Margin1 Free Cash Flows1,3 8.5% 6.3% 1.8% 6.7% 7.0% 4.7% 5.8% $113 $37 $36 $15 $2,033 ($35) $1,847 $1,834 ($61) $1,613 $1,581 $1,720 $1,443 ($124) 2016 2017 2018 2019 2020 2021 2022 2016 2017 2018 2019 2020 2021 2022 Revenue Adj EBITDA Margin N
Slide 21: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation 21
Slide 22: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation 22
Slide 23: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation 23
Slide 24: Appendix – GAAP to Non-GAAP Reconciliation
Appendix – GAAP to Non-GAAP Reconciliation Three Months Ended Year Ended December 31, December 31, 2022 2021 2022 2021 Net cash provided by operating activities $ 80.2 $ 8.2 $ 76.9 $ 76.2 Capital expenditures (30.0) (18.1) (61.8) (40.4) Free cash flows $ 50.2 $ (9.9) $ 15.1 $ 35.8 24
Slide 25: Contact: Ion Warner SVP Marketing & Investor Relations
Contact: Ion Warner SVP Marketing & Investor Relations ion.warner@manitowoc.com O: +1 414-760-4805 M: +1 717-414-1813
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