USING INNOVATION AND VELOCITY TO BUILD A REAL ADVANTAGEOn March 4, 2016, Manitowoc became a stand-alone crane company after spinning off its foodservice business.
We are a leading global crane manufacturer with well-known brands. Our new leadership team is transforming the company to capitalize on market opportunities by using “The Manitowoc Way” as its Lean operating model and the foundation of our four-part strategic priorities; Margin Expansion, Growth, Innovation, and Velocity.
Using our competitive advantages and growth strategies to leverage market opportunities, we expect to meet these goals:
How The Manitowoc Way Increases Value
2016 Full-Year Guidance
The triangle represents The Manitowoc Way. We get close to customers and understand their needs, so they buy our cranes for the value they create. Shareholders see this economic opportunity and provide the capital for us to engineer, manufacture and sell cranes.
Employees use this investment to apply their skills and commitment to satisfying customers.
Customers
Shareholders Employees
Velocity Innovation
1. Margin Expansion
2. Growth
3. Innovation
4. Velocity
THE MANITOWOC COMPANY FACT SHEETSecond Quarter - 2016
1. Margin Expansion2. Growth3. Innovation4. Velocity
Customers
EmployeesShareholders
Comm
itmentPe
rcei
ved
Value
Resources
Velocity
Innovation
Net Sales down approximately
10% to 12%
Adjusted operating margins
approximately 1% to 2%
Depreciation between
$45 - $50 million
Amortization expense between
$3 - $4 million
Capital expenditures approximately
$45 - $50 million
$ $ $
Tower Cranes: Generating strong volumes and gaining significant market share.
Mobile Cranes: Seeing targeted market share gains in specific product lines (rough-terrain segment) globally.
$
City-class tower cranes
HUP 32-27 GRT8100
CAPITALIZING ON OUR COMPETITIVE ADVANTAGESThese characteristics distinguish Manitowoc in the crane industry.
Offering Market-Leading BrandsWe have the most diversified product line in the industry. There is very strong allegiance to our well-known brands, which hold a leading market position in these categories: mobile telescopic cranes, lattice boom crawlers and tower cranes.
Capex & % of Sales Free Cash Flow & % Conversion
$21
$52 $53
$69
$57$52
1.2%2.4% 2.2% 2.8% 2.5% 2.8%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
$-
$20
$40
$60
$80
$100
$120
$140
2010 2011 2012 2013 2014 2015
Capex %ofSales
$129 $120$161
$196$152
$5886.2%69.7% 75.4% 73.9% 72.7%
52.9%0.0%
50.0%
100.0%
150.0%
200.0%
250.0%
300.0%
0
50
100
150
200
250
300
350
400
450
500
2010 2011 2012 2013 2014 2015
FCF %Conversion
We use Lean principles to rigorously manage our capital allocation; balancing our operational, innovation and growth needs while demonstrating stable cash flow in dynamic market conditions.
Generating Solid Cash Flow
Reaching Diverse Markets and CustomersWe have manufacturing, distribution, and service facilities in 20 countries. This extensive network enables us to serve customers globally, in emerging and mature markets, and drives a profitable crane aftermarket business.
FACT SHEETSecond Quarter - 2016
2
2015 Geographic Exposure
2015 End Market Exposure
2015 Overall Customer Mix
2016 Q2Revenue by Product
High-Capacity Lattice Boom Crawlers
Top-Slewing / Self-Erecting Tower Cranes
Rough-Terrain Cranes
Boom Trucks All-Terrain
Cranes
Margin Expansion
STRATEGIC PRIORITIES
3
Growth
FACT SHEETSecond Quarter - 2016
Customers
EmployeesShareholders
Comm
itmentPe
rcei
ved
Value
Resources
Velocity
Innovation
VelocityInnovation
The Manitowoc Way is transforming our company culture about Lean: doing more with less, and being nimble in quickly meeting our customers’ needs. This includes holding The Manitowoc Way summits with employees throughout the year. These combine classroom training with immediate hands-on shop floor experience, which increases employee understanding, buy-in and adoption. In addition, we are using Lean to significantly reduce the number of days it takes us to complete an activity—from design through manufacturing.
Those activities also enable us to strengthen our balance sheet and reduce the amount of spin-off debt we incurred. Working capital management will improve as we also use Lean to reduce the amount of inventory needed in our business.
Our focus is to create products that increase a customer’s return on invested capital (ROIC). For instance, we’re introducing cranes with the flexibility to do a wider variety of lifts. That means customers need fewer pieces of equipment and get a better ROIC with Manitowoc cranes.
We’re also reinvigorating our product development process. One example is our 10-person team collaborating with customers to develop a next-generation crane in six months. The product is designed to meet changing needs in the market and offer the features customers request, such as class-leading capacity and a longer boom.
This—and other cranes we’re designing or redesigning—will benefit from state-of-the-art manufacturing processes that minimize cost, such as robotic welding. We also are standardizing components across product lines, such as using common control systems. That means operators only need to be trained on one system to operate many different types of cranes.
To regain market share, we are focused on designing quality and reliability not only into our products, but also into our process for manufacturing cranes.
Our global distribution network provides industry-leading customer service around the globe. We support these professionals with a factory and dealer sales training program.
This is enhanced by our: 1) Crane Care services support to maximize equipment uptime.
2) Manitowoc Finance, which provides flexible and affordable financing.
3) Manitowoc Lift Solutions, which helps customers with unique applications for their cranes.
4) CraneSTAR, which gives customers access to data to better manage their fleets.
We will right size our headcount and global manufacturing footprint to match our market opportunity. We announced our intent to relocate our crawler crane manufacturing operations from Manitowoc, Wisconsin to Shady Grove, Pennsylvania, to optimize our manufacturing footprint, reduce costs and expand margins. This initiative will increase operational efficiency and allow us to reallocate resources to invest in profitable growth. The transition will begin in the third quarter with completion anticipated by the middle of 2017. In total, this initiative is expected to generate annualized pre-tax cost savings of $25-30 million.
Additionally, by driving Lean principles into every area of manufacturing, we are increasing the agility and productivity of our plants.
That means we can:1) Capitalize the business for the trough of the cycle, and still earn the returns that shareholders deserve.
2) Use Lean to increase our flexibility as the cycle improves. To deliver higher value to our customers, we use value-added engineering to lower the product costs in our cranes, combined with rationalized product lines.
PERFORMING THROUGHOUT THE CYCLEA Broad Product Line Promotes Consistent Performance...
Leading to Significant Revenue and EBITDA During Upturns
This fact sheet includes "forward-looking statements" intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Any statements here that are not historical facts are forward-looking statements. Forward-looking statements only speak as of the date on which they are made. Information on the potential factors that could affect the company's actual results of operations is included in its filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10-K for the fiscal year ended December 31, 2015.
For More Information
Ion M. WarnerVice President, Marketing and Investor Relations717-593-5266
David J. AntoniukSenior Vice President & Chief Financial Officer920-652-1769
The Manitowoc Company, Inc.P.O. Box 66Manitowoc, Wisconsin 54221-0066www.manitowoc.com
Revenue EBITDA & Margin
$1,708
$2,135
$2,427 $2,506$2,305
$1,862
2010 2011 2012 2013 2014 2015
Revenue
$149
$172
$214
$266
$210
$1108.7% 8.1% 8.8%
10.6%9.1%
5.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
$-
$50
$100
$150
$200
$250
$300
2010 2011 2012 2013 2014 2015
EBITDA %Margin
Equity Research CoverageFirm Analyst Phone
BarclaysRobert [email protected]
804-782-8769
CitiTim [email protected]
212-816-6706
Credit Suisse SecuritiesJamie [email protected] 212-538-6098
Deutsche Bank Securities Nicole [email protected] 212 250-5916
Goldman Sachs & CompanyJerry [email protected]
212-902-4116
Jefferies & CompanyStephen [email protected]
212-264-2031
J.P. Morgan SecuritiesAnn [email protected]
212-622-0381
Macquarie ResearchSameer [email protected]
212-618-7545
RBC Capital Markets Seth [email protected]
212-618-7545
Robert W. Baird & Co. Mig [email protected]
414-298-6138
Seaport Global SecuritiesMichael [email protected]
646-264-5607
Stifel NicolausStanley [email protected]
804-727-6364
SunTrust Robinson Humphrey
Charles [email protected]
404-926-5563
UBS SecuritiesSteven [email protected]
212-713 8634
William Blair & CompanyLawrence De [email protected]
212-237-2753
Including this list does not indicate any endorsement of analyst projections or opinions.
FACT SHEETSecond Quarter - 2016
4
839
775
761
931
944
976
756
776
726
568
574
842
728
716
738
770
731
631
513
502
394
0
200
400
600
800
1000
1200
1Q-11 2Q-11 3Qr-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16
HistoricalQuarterlyBacklog($mm)
839
775
761
931
944
976
756
776
726
568
574
842
728
716
738
770
731
631
513
502
394
0
200
400
600
800
1000
1200
1Q-11 2Q-11 3Qr-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16
HistoricalQuarterlyBacklog($mm)
1.10.9
1.0
1.3
1.0 1.1
0.7
1.00.9
0.7
1.0
1.6
0.81.0 1.0 1.1
0.90.8 0.8
1.0
0.8
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16
BooktoBillRa7o
1.10.9
1.0
1.3
1.0 1.1
0.7
1.00.9
0.7
1.0
1.6
0.81.0 1.0 1.1
0.90.8 0.8
1.0
0.8
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2Q-11 3Q-11 4Q-11 1Q-12 2Q-12 3Q-12 4Q-12 1Q-13 2Q-13 3Q-13 4Q-13 1Q-14 2Q-14 3Q-14 4Q-14 1Q-15 2Q-15 3Q-15 4Q-15 1Q-16 2Q-16
BooktoBillRa7o
Market Information(June 30, 2016)
Exchange/Symbol NYSE:MTW
Price $5.45
Four-Month Range $4.04 - $6.05
Second Quarter Adjusted EPS*
$0.04
Book Value per Share $5.48
Price to Book Value 1.00X
Average Shares Outstanding 137.1 million
Market Capitalization $747.2 million
Average Daily Volume 3.4 million
* Excluding early extinguishment of debt, restructuring, and one-time tax items
Key RatiosThree months ended June 30,
2016 2015
Operating Margin 3.2% 3.2%
Debt-to-Equity 0.4X 1.9X
Debt-to-Capitalization 27% 66%
12-Month Adjusted EBITDA (millions)
$111.8 N/A