THE MANITOWOC COMPANY, INC. The Manitowoc Company, Inc.
IDEAS Conference
June 13, 2024
New York, NY
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, and are subject to uncertainty and changes in circumstances.
The Company undertakes no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. As a general matter, forward-looking statements are those focused upon anticipated events or trends, expectations and beliefs relating to matters that are not historical in nature. 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. 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 Annual Reports on Form 10-K. 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 1995.
Non-GAAP Measures
Adjusted net income, adjusted diluted net income per share ("Adjusted DEPS"), EBITDA, adjusted EBITDA, adjusted return on invested capital, and free cash flows are financial measures that are not in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). For a reconciliation to the comparable GAAP numbers please see "Appendix - GAAP to Non-GAAP Reconciliation." Manitowoc believes 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. Manitowoc believes excluding specified items provides a more meaningful comparison to the corresponding reporting periods and internal budgets and forecasts, assists investors in performing analysis that is consistent with financial models developed by investors and research analysts, provides management with a more relevant measure of operating performance, and is more useful in assessing management performance.
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Company Overview
• 2023 Revenue: $2.2B |
MEAP
• 2023 Adjusted EBITDA(1): $175M (7.9% of sales) |
EURAF
30%
16%
• | 2023 Adjusted ROIC(1): 11.2% |
• 2023 Net Leverage Ratio(2): 1.9x | |
• | Global footprint |
• | Strong brand loyalty |
• Large installed base and growth of accretive aftermarket business |
Sales by Geography(3)
AMERICAS
54%
MARKET LEADING PROVIDER OF LIFTING SOLUTIONS
_____________________
Source: Company filings
- Please refer to Appendix for Non-GAAP reconciliations
- Calculated as total debt less cash and cash equivalents divided by Adjusted EBITDA
- For the year-ended December 31, 2023
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A Crane Renaissance in the Making…
Total Revenue ($M)
2004 - 2008
Avg Revenue: ~$2,400
$4,000
2010 - 2013 | |||
$3,000 | Avg Revenue: ~$2,200 | 2020 - 2023 | |
2017 - 2019 | Avg Revenue: ~$1,850 | ||
Avg Revenue: ~$1,700 |
$2,000
$1,000
$0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Global Investments in
Energy Generation and
Distribution
U.S. Infrastructure Bill &
CHIPS Investments
European Housing
Market Demand
Higher Commodity
Prices
Saudi Vision 2030
Aging Crane Fleets
Need Refresh
DEMAND HAS BEEN RELATIVELY FLAT FOR THE LAST 10 YEARS, ADJUSTING FOR INFLATION
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Manitowoc's Evolution Since 2016
2016 | 2020 |
Became a standalone | COVID-19 pandemic - good |
crane Company | stress test |
Introduced Four
Breakthrough Initiatives
2022
Acquired Honnen Equipment's crane assets; opened Spain service location
2019 | 2021 | 2023 |
Refinanced debt | Acquired Aspen Equipment & | Opened Denver, Kansas City, |
H&E crane business | MO, Aiken, SC, and Lima, | |
Peru distribution and service | ||
branch locations |
CAPITALIZE ON AFTERMARKET CREATED BY OUR INSTALLED BASE
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Growing Aftermarket Business
- Parts & Service
- Rent-to-Own(RPO)
- Rentals
- Used sales
- Crane remanufacturing
- Training services
- Digital solutions
$800
$600
$400
$200
$0
TTM Aftermarket Revenue ($M)
$613 | ||||||||||||||||||||||||||||||||
$545 | ||||||||||||||||||||||||||||||||
$449 | ||||||||||||||||||||||||||||||||
$366 | $382 | $405 | $403 | $376 | ||||||||||||||||||||||||||||
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 |
TARGETING AFTERMARKET MID-SINGLE DIGIT CAGR
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Driving Shareholder Value
GROWING AFTERMARKET INCREASES MARGINS AND REDUCES CYCLICALITY
_____________________
(1) Please refer to Appendix
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Building Momentum on Breakthrough Initiatives
Aspirational Targets | ||||
Grow EU | Grow our | Expand | Leverage | • $3.0B Revenue |
Tower | Belt & Road | Aftermarket | All-Terrain | • $1.0B Non-new machine sales |
Crane | Presence | Crane NPD | ||
in North | ||||
Rental & | (Middle | to Grow | • 12% Adjusted EBITDA | |
America | ||||
Aftermarket | East focus) | Aftermarket |
• 15% Adjusted ROIC(1)
THE MANITOWOC WAY
Megatrends
Infrastructure | Electrification | Fleet Renewal | Strong Commodity |
Investments | Prices | ||
POSITIONING THE COMPANY TO CAPTURE GREATER AFTERMARKET
_____________________
(1) Adjusted ROIC is defined as adjusted net operating profit after taxes divided by total assets less cash, non-interest-bearing debt, and income taxes
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Expand Aftermarket in North America
Rental Fleet
Services
Full-Service
Capabilities
Parts Sales
Remanufacturing and Used Sales
Retail Sales
2021 - 2023 Progress
- Acquired H&E Crane business (MGX) and Aspen Equipment in 2021
- Added 3 new branch locations
- Grew service technician headcount from 31 to 194
- Launched QuickStart training program to accelerate development of revenue- producing service techs
$180M INVESTMENT IN ACQUISITIONS GENERATING >$30M OF ADJUSTED EBITDA
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Disclaimer
Manitowoc Company Inc. published this content on 13 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 13 June 2024 14:20:07 UTC.
