Columbus Mckinnon Corporation · NASDAQ:CMCO

Columbus Mckinnon — Merger or Acquisition (December 2016)

14 slides from Columbus Mckinnon's merger presentation, Dec 7, 2016

  1. Slide 1: Columbus McKinnon to Acquire STAHL CraneSystems

    © 2015 Columbus McKinnon Corporation. All Rights Reserved. Confidential and Proprietary. Columbus McKinnon to Acquire STAHL CraneSystems December 7, 2016

  2. Slide 2: Safe Harbor Statement

    2 © 2016 Columbus McKinnon Corporation Safe Harbor Statement This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements concerning future revenue and earnings, involve

  3. Slide 3: Strategic Imperatives

    3 © 2016 Columbus McKinnon Corporation Superior Customer Satisfaction Geographic Market Expansion Acquisitions and Strategic Alliances Global Product Development and Key Vertical Markets Operational Excellence Grow Profitably Strategic Imperatives

  4. Slide 4: Ideal Strategic Combination

    4 © 2016 Columbus McKinnon Corporation Ideal Strategic Combination Strong Value Proposition  Ideal complement to Columbus McKinnon’s global presence  Strong wire rope and electric chain hoist position in EMEA complements Columbus McKinnon manual hoist leadership  Explosion-protected products (ATE

  5. Slide 5: STAHL: Long History of Quality

    5 © 2016 Columbus McKinnon Corporation 140 years of experience in the industry Unique strategy of being a specialist in custom hoists World market leader in explosion-protected hoists Global presence: 9 sales companies and >100 channel partners Diversified customer end-markets Strong margins and cas

  6. Slide 6: STAHL: Strong Financial Performance

    6 © 2016 Columbus McKinnon Corporation STAHL: Strong Financial Performance  Consistent best-in-class profitability  September 30, 2016 TTM financial results:  Revenue: ~$166 million (€155 million)  EBITDA: ~$31 million (€29 million)  EBITDA Margin: ~19%  Strong cash conversion rate  All manuf

  7. Slide 7: STAHL: Established Global Presence

    7 © 2016 Columbus McKinnon Corporation 71% 16% 13% EMEA Americas APAC STAHL: Established Global Presence  Superior product quality  Premium brand; strong reputation  Long-standing customer relationships  Large installed base; strong spare parts business  Explosion-protected hoist leader Revenue

  8. Slide 8: STAHL: Highly Diversified Markets

    8 © 2016 Columbus McKinnon Corporation STAHL: Highly Diversified Markets 8 Automotive [PERCENTA GE] General Manufacturi ng 17% Steel & concrete 15% Power generation 15% Chemicals & Pharma 12% Oil & gas 24% Revenue by Industry

  9. Slide 9: Synergy-Driven Value Creation

    9 © 2016 Columbus McKinnon Corporation Costs  Sales office consolidation  Product rationalization  Lean processes  Sourcing & logistics opportunities Revenue  Leverage global sales force  Expand product offering  Smart technology Intercompany Opportunities  Magnetek drives  Low cost country

  10. Slide 10: Strengthens Margin Profile

    10 © 2016 Columbus McKinnon Corporation STAHL 27% CMCO 79% STAHL 21% Pro forma TTM 9/30/16 sales and EBITDA(1) Sales $782 million EBITDA(1) $116 million Pro forma sales by geography and product Americas 58% EMEA 34% Other 8% Rigging/ Lifting, 9% Cranes, 6% Actuator s, 8% Other, 2% Spare Parts, 8% Dr

  11. Slide 11: Transaction Overview

    11 © 2016 Columbus McKinnon Corporation Transaction Overview Purchase Price €224 million ($240 million); €230 million ($246 million) with earn-out Transaction Costs Fiscal 2017: $8 million - $9 million Restructuring Costs Fiscal 2018: Approximately $6 million Pension Liability $79 million unfunded p

  12. Slide 12: Acquisition Financing

    12 © 2016 Columbus McKinnon Corporation Acquisition Financing Expected rate of debt reduction: $25 million - $30 million in FY18 Ramping to $45 million - $50 million in FY19 Pro Forma Capitalization 9/30/2016 Reported 9/30/2016 Pro Forma Cash and cash equivalents $ 45.7 $ 27.6 Existing $225 million

  13. Slide 13: Appendix

    © 2015 Columbus McKinnon Corporation. All Rights Reserved. Confidential and Proprietary. Appendix

  14. Slide 14: Combined EBITDA Reconciliation

    14 © 2016 Columbus McKinnon Corporation Combined EBITDA Reconciliation $ in thousands 9/30/16 TTM CMCO Net income: $ 26,333 Add back: Interest expense 10,215 Investment income (597) Foreign currency exchange gain/loss 158 Other income, net (392) Income tax expense 10,870 Depreciation & amortization

Columbus McKinnon — Merger or Acquisition (December 2016) on 6ix