Robert W. Baird Industrial Conference. Chicago, IL November 12, 2008

Transcription

1 Robert W. Baird Industrial Conference Chicago, IL November 12, 2008

2 SAFE HARBOR STATEMENT Any forward-looking statements contained in this presentation are based on current expectations that may differ significantly from actual results due to risks and uncertainties in our operations and the business environment. These statements include expectations of future product demand, market conditions, manufacturing efficiencies, and general economic conditions. Among the factors that could cause actual results to differ materially include, but are not limited to, those relating to the revenue growth of the company and/or its business segments, achieving market leadership in the company s business segments, future market strength for the company s business segments, the pursuit of acquisitions, marketplace demand and customer acceptance of new products, future new product introductions, and future manufacturing efficiencies. Other factors are listed in the company s 2007 annual report. Any such forward-looking statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

3 OVERVIEW Founded in 1902, Manitowoc is the world s leading manufacturer of cranes and commercial foodservice equipment Crane Group Crawler cranes Tower cranes Rough-terrain and all-terrain cranes Boom trucks Foodservice Group Ice, beverage, and commercial refrigeration equipment Heating and cooking equipment Food retail equipment Marine Group Commercial, military, government, and specialty ship construction Repair, maintenance, and conversion services

4 GLOBAL STRATEGIC IMPERATIVES Growth Innovation Customer Focus Excellence in Operations Aftermarket Product Support People and Organization Value Creation

5 A GROWING GLOBAL PRESENCE 104 manufacturing and service facilities located in 27 countries Closer proximity to our customers Timely product support and service Lessens impact of regional downturns Provides platform for growth

6 THE MANITOWOC PORTFOLIO: 2007 vs Manitowoc standalone (2007) Combined Manitowoc and Enodis Cranes 81% Cranes 58% Foodservice 36% Foodservice 11% Marine 8% $4.0 billion standalone revenues Marine 6% $5.6 billion combined revenues (1) (1) Does not include impact of divestitures

7 MANITOWOC TODAY (Pro Forma 2007 Sales Mix) Business Mix Geographic Mix Cranes Foodservice Cranes New Cranes 89% 11% Parts & Service EMEA 45% 44% 11% Asia/ Pacific Americas 58% 6% 36% Foodservice Renovation & Replacement 64% 36% New Locations Americas 75% 8% Asia/Pacific 17% EMEA Marine Marine New Projects 91% 9% Repair & Inspection 100% North America $5.6 billion in 2007 sales with 43% from outside of North America

8 SEGMENT REVIEW Manitowoc s diversified business model creates a solid platform for growth

9 CRANE GROUP SEGMENT REVIEW Founded in 1902, Manitowoc is the world s leading manufacturer of cranes and commercial foodservice equipment Crane Group Crawler cranes Tower cranes Rough-terrain and all-terrain cranes Boom trucks Foodservice Group Ice, beverage, and commercial refrigeration equipment Heating and cooking equipment Food retail equipment Marine Group Commercial, military, government, and specialty ship construction Repair, maintenance, and conversion services

10 CRANE BRAND OVERVIEW World leader in high-capacity, lattice-boom crawler cranes World leader in top-slewing and self-erecting tower cranes Leading US manufacturer of boom trucks World leader in mobile telescopic cranes (rough-terrain and all-terrain cranes) Industry s most comprehensive aftermarket product support program Customer-focused approach to finance sales

11 GLOBAL LEADER IN LIFT SOLUTIONS Market Position #1 Worldwide in Crawlers, Towers & Mobile Telescopic Cranes End Markets Heavy Construction Energy-Related Bridges & Highways Infrastructure Commercial Construction High-density Residential Competitors Terex/Demag Liebherr Kobelco Fushun XCMG Tadano Sany Link-Belt Comansa Terex/Peiner Comedil Zoomlion

12 2007 CRANE GROUP REVENUE BY END MARKET Utilities Manufacturing Commercial Construction Residential Construction 10% 8% 5% 23% (US represents 6%) (US represents 1%) Road & Highway 16% 17% 21% Industrial/ Petro-chemical Power Plants

13 WORLD CONSTRUCTION MARKET (Nominal $ Trillion) $14.0 $12.0 $10.0 $8.0 $6.0 $3.8 $4.0 $4.5 $5.5 $6.2 $7.1 $8.5 $10.0 $12.0 $14.5 $2.0 $ CAGR 2008 / / / / 2008 World 8.5% 8.4% 9.4% 8.9% U.S. 3.5% 5.2% 5.1% 5.2% U.S. Non-res 9.4% 1.8% 5.3% 3.5% Source: Global Insight, October 2008

14 A GROWING WORLD DEMANDS MORE INFRASTRUCTURE World s urban population growing 9.5% per year Global energy use jumps 50% by 2030 Oil and electrical use in developing markets to exceed that of mature markets Persian Gulf region to invest $70 billion in water and power projects by 2015 India to invest $13 billion in nuclear power over the next 10 years

15 GLOBAL MARKETS THIRST FOR ENERGY Global energy consumption increases 50% from 2005 to 2030 China and India doubles to 25% of world consumption China spending $65 billion to expand power grid China planning 21 refinery projects for 2010 India building 90kMW of new electrical capacity by 2012 Middle East, Africa, Central and South America energy needs increase by 60%

16 STEADILY GROWING CRANE BACKLOG ($ Millions) $3,253 $3,522 $3,332 $2,653 $2,877 $1,896 $2,069 $1,390 $1,534 $532 $196 $329 $987 $530 $331 $159 $1,112 $146 $289 $633 $221 $327 $866 Q1 Q2 Q3 Q

17 LATEST CRANE INNOVATIONS Manitowoc Potain Igo T-70 GTK new cranes in 2008

18 CRANES COMPETITIVE STRENGTHS Leading market positions, large installed base Most recognized brand names in the industry Driving replacement market through innovation and technology Well positioned in emerging markets Superior aftermarket product support Highest resale values

19 FOODSERVICE GROUP SEGMENT REVIEW Founded in 1902, Manitowoc is the world s leading manufacturer of cranes and commercial foodservice equipment Crane Group Crawler cranes Tower cranes Rough-terrain and all-terrain cranes Boom trucks Foodservice Group Ice, beverage, and commercial refrigeration equipment Heating and cooking equipment Food retail equipment Marine Group Commercial, military, government, and specialty ship construction Repair, maintenance, and conversion services

20 FOODSERVICE IS A STABLE INDUSTRY

21 KEY FOODSERVICE DRIVERS Increasing demand for prepared food Higher levels of disposable income Menu changes and high replacement / renovation characteristics drive equipment change-outs Equipment technology spurs cost, labor, and energy savings for restaurant and institutional operators International expansion by leading chains

22 FOODSERVICE BRAND OVERVIEW Leading foodservice equipment manufacturer with a portfolio of over 35 leading brands Selected Products

23 ACQUISITION BENEFITS Establishes Manitowoc Foodservice Group as the largest pure play foodservice equipment manufacturer in the world Solidifies a global footprint for the Foodservice segment Enhances ability to invest in innovation across all Foodservice product lines Capabilities for greater product sales into larger customers/chains Identified synergies exceeding $80 million Creates larger foodservice business which provides more stability to the underlying earnings power of Manitowoc EPS accretive in 2009; EVA positive by 2011

24 SIGNIFICANT SYNERGIES EXPECTED Run rate synergies exceeding $80 million expected by 2011 One-third of synergy assumptions achievable in first twelve months following close, over 90% achievable by 2010, and 100% achievable by 2011 Approximately $30 million of initial costs to achieve synergies Cost savings Economies of scale in procurement Elimination of public company expenses Consolidation of duplicated infrastructure Rationalization of administrative functions Transfer of best practices (e.g. lean manufacturing) Revenue synergies Cross-selling opportunities with complementary products Source Manitowoc components for Enodis walk-in refrigeration systems

25 FOODSERVICE COMPETITIVE STRENGTHS Market leader in heating, cooking, ice, beverage, and refrigeration technologies Broadest product line in the industry Focused on replacement and renovation (approximately 60% of sales) Established reputation for innovation and superior aftermarket support Highly efficient production processes and working capital management Strong network of 120 distributors in 90 countries

26 MARINE GROUP Founded in 1902, Manitowoc is the world s leading manufacturer of cranes and commercial foodservice equipment Crane Group Crawler cranes Tower cranes Rough-terrain and all-terrain cranes Boom trucks Foodservice Group Ice, beverage, and commerical refrigeration equipment Heating and cooking equipment Food retail equipment Marine Group Commercial, military, government, and specialty ship construction Repair, maintenance, and conversion services

27 MARINE SEGMENT DEFINITIVE PURCHASE AGREEMENT Pending sale to Fincantieri, SpA $120 million all-cash transaction Q anticipated closing Generates 60c per share after-tax gain 11x multiple based on average three-year EBITDA Proceeds intended for debt repayment and general corporate purposes

28 FINANCIAL HIGHLIGHTS Manitowoc Has a History of Solid Financial Performance and Substantial Cash Flow

29 SEGMENT FINANCIAL SNAPSHOT Sales ($MM) 1 Operating Profit ($MM) 1, 2, 3 4,000 4, ,000 2, ,254 3, ,000 1, ,845 1,684 1,588 1,468 1,170 1, ,235 1,629 1, Crane Notes: Foodservice Marine (1) Pro forma for the acquisition of Grove and Potain (2) Segment amounts exclude amortization expense and restructuring charge (3) Total operating profit includes corporate and amortization expense of $23mm, $17mm, $22mm, $24mm, $28mm, and $46mm for the years ended 2001, 2002, 2003, 2004, 2005, and 2006 respectively; plus restructuring charges of $10 million in 2003, $1million in 2004, $3 million in 2005, and ($3.0 million) in 2007; also includes a curtailment gain of $13 million in 2003, and a curtailment loss of $6 million in 2007.

30 DEBT-TO-CAPITALIZATION COMPARISON $3.0 Grove Enodis 80% $2.5 Shannon Potain 70% 60% $2.0 SerVend 50% $1.5 Marinette 40% $1.0 30% 20% $0.5 10% $ /8/ YTD 2008 $ Billions % of Debt/Cap 0%

31 CASH FLOW vs. EARNINGS COMPARISON ($ Millions) Cash from Operations Earnings $333.6 $294.1 $236.5 $150.9 $166.5 $106.7 $94.5 $106.0 $63.0 $49.0 $39.5 $39.0 $56.9 $38.1 $59.1 $ Cumulative Cash Flow to Earnings Conversion 143%

32 QUARTERLY FINANCIAL COMPARISON Q Q Sales $925.2 $1,106.8 Operating Earnings $118.0 $ Operating Margin 12.8% 12.7% Cash from Operations $ 55.9 $ (2.5) Diluted EPS GAAP $ 0.59 $ (0.20) Diluted EPS (before special items) $ 0.66 $ 0.80 Depreciation $ 18.0 $ 21.4 Capital Expenditures $ 25.0 $ 31.7 (In millions, except diluted EPS and operating margin)

33 MANAGING THROUGH CHALLENGING TIMES Current economic situation is credit driven, fundamental demand driven by global trends Prudent responses to current economy: Reduce SG&A, freeze on salaried employees Insource work to reduce outsource premiums Reduce temporary workforce Optimize global manufacturing Exploit supply chain opportunities Maximize the benefits of Enodis acquisition

34 CONCLUSION Significant Product and Geographic Diversity Different customers, end-markets, and business cycles for Crane and Foodservice segments Crane complemented by stable growth in Foodservice Product innovation drives our market leadership 60% of revenues derived outside of the United States Significant Near-Term Earnings Growth Potential Crane business driven by energy, infrastructure, and emerging economies Late-cycle dynamic consistent with prior cycles Operational improvements position us to perform well in all cycles Winning Strategy for Long-Term Growth New crane and foodservice products driving market share gains Leveraging global manufacturing/sourcing capability to increase sales and profit margins Only global crane company with long-term manufacturing presence in China Proven Track Record of Performance Proven ability to identify and integrate acquisitions Positive free cash flow in each of the past eleven years Expects near-term deleveraging through strong cash flow and asset divestitures

35 TIME FOR YOUR QUESTIONS Crane Group Foodservice Group Marine Group