The Manitowoc Company, Inc.

Transcription

1 The Manitowoc Company, Inc. SUNTRUST MIDWEST INDUSTRIAL CONFERENCE KOHLER, WI, JUNE 22, 2017

2 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, and are subject to uncertainty and changes in circumstances. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements include, without limitation, statements typically containing words such as intends, expects, anticipates, targets, estimates, and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. For a list of factors that could cause actual results to differ materially from those discussed or implied, please see the company s periodic filings with the SEC, particularly those disclosed in Risk Factors in the company s Form 10-K for the fiscal year ended December 31, Any forward-looking statements in this presentation are intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of Non-GAAP Measures The company uses certain non-gaap measures in discussing the company s performance. The company believes that these non-gaap financial measures provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations; however, these measures are not substitutes for GAAP financial measures. The reconciliation of those measures to the most comparable GAAP measures is detailed in Manitowoc s press release for the first-quarter of 2017, which is available at together with this presentation. 2

3 Industry-Leading Crane Company Global leader in lifting equipment Global customer financing and aftermarket solutions Serving wide range of end markets Stable customer base across diverse range of geographies Strategically located manufacturing footprint allows us to serve attractive markets globally Leader in innovation Expect significant upside from near-term operational improvements Early stages of transformation to a high quality, higher margin crane company compared to peers 3

4 Strong Aftermarket Solutions Aftermarket Parts and Service Skills Training Fleet Management/ Diagnostics (Tower) Financing Rebuild/Refurbish Special Applications 4

5 Transformation: The Conditions are Right Stand-alone Crane Company Foodservice spin-off complete Right-sizing for new company structure Re-Capitalized Balance Sheet Sufficient liquidity Working capital focus Operationally Focused Management Team Demonstrated record of turnarounds Lean acceleration to drive margin improvement Cyclical Down-Turn Increasing manufacturing flexibility to manage through the cycle 5

6 Global Footprint Manufacturing footprint and extensive sales and customer service reach to serve both mature and emerging markets 6

7 The Manitowoc Way Customers 1. Margin Expansion Velocity Innovation 2. Growth 3. Innovation Shareholders Employees 4. Velocity 7

8 Strategic Priorities Margin Expansion Optimize Global Capacity Increase Manufacturing Agility Improve Productivity Reduce Material Cost Growth Renew Focus on Quality & Reliability Strengthen Channel Management Increase Market Share Innovation Accelerate New Product Development Leverage Advanced Manufacturing Technologies Velocity Implement The Manitowoc Way Re-invigorate the Company Culture Strengthen Balance Sheet by Better Working Capital Mgmt. 8

9 Progress on Strategic Priorities Margin Expansion Aligning capacity to current demand -- plant relocations on schedule Unwavering focus on cost management and to eliminate waste Growth Key account management program Military project on schedule Aftermarket initiatives Innovation Eight new crane introductions at ConExpo Two cranes developed from ground up in six months Velocity Implement The Manitowoc Way Kaizen-driven success stories Actions to Target Double Digit Operating Margins (EBITA) by

10 ConExpo 2017 Summary Over one year of planning 5 weeks to construct the stand 5 days on the show 12 cranes on display (8 brand new) 25+ customer celebrations & crane handovers 128,000 attendees from 150 countries Excellent customer reception to new products Orders exceeded expectations 10

11 ConExpo

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15 A P P E N D I X 15

16 Q Summary Financial Summary Backlog up 56% sequentially Nearly half of order from new products Revenue down 28.5 percent Focused actions to manage costs and right-size the business Improved cash flow YOY with no borrowings on ABL facility at quarter end Business Highlights Strong customer reception to new products at ConExpo Mobile cranes: Soft market conditions in Americas & Middle East Tower cranes: stable, in line with expectations 16

17 Financial & Other Key Metrics Q Q (3) YoY Orders $ $ % Net Sales $ $ (28.5)% SG&A Expense $ 63.3 $ 72.4 (12.5)% Operating (loss) income $ (23.7) $ 0.8 n/m Non-GAAP adjusted operating $ (11.4) $ 7.3 n/m (loss) income (1) Net Loss from contiuing operations $ (36.0) $ (192.7) 81.3 % Non-GAAP adjusted net loss from $ (24.2) $ (7.6) n/m continuing operations (1) Non-GAAP Adjusted EBITDA (1) $ (0.8) $ 19.5 n/m CFOA (2) $ (32.5) $ (163.4) 80.1 % Capital Expenditures $ 3.8 $ 10.9 (65.2)% Backlog $ $ % Book-to-bill % (1) Please see appendix for reconciliation of GAAP to non-gaap measures (2) Cash Flow from Operating Activities of continuing operations (3) Reflects the retrospective change in accounting for inventories from LIFO to FIFO in

18 Situational Analysis Mobiles Towers Uncertainty on industry trough Depressed energy markets Infrastructure investments Lower resale values Lower rental rates Lower utilization rates Residential and Commercial market recovery Stable resale values Flat rental rates Strengthening utilization rates in Europe and North America, declining in Latin America and Middle East Persistently weak market conditions; Looking for signs of stabilization Weak market environment; but improving 18

19 Historical Manitowoc Crane Volume Crane volumes are currently near cyclical lows (# of units sold) MOBILES Towers

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