Q4 FY'25 Non-Deal Roadshow
Gregory P. Rustowicz
Executive Vice President Finance & Chief Financial Officer
Kristine Moser
Vice President, Investor Relations and Treasurer
March 2024
Safe Harbor Statement
These slides, and the accompanying oral discussion (together, this "presentation"), contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are generally identified by the use of forward-looking terminology, including the terms "anticipate," "believe," "continue," "could," "estimate," "expect," "illustrative," "intend," "likely," "may," "opportunity," "plan," "possible," "potential," "predict," "project," "shall," "should," "target," "will," "would" and, in each case, their negative or other various or comparable terminology. All statements other than statements of historical facts contained in this document, including, but are not limited to, statements relating to: (i) our strategy, outlook and growth prospects and our fourth quarter fiscal 2024 guidance; (ii) our operational and financial targets and capital distribution policy; (iii) general economic trend and trends in the industry and markets; (iv) the risk and costs associated with the integration of, and our ability to integrate acquisitions successfully to achieve synergies; (v) the proper application of generally accepted accounting principles, which are highly complex and involve many subjective assumptions, estimates and judgements, (vi) the effectiveness of our new facility in Monterrey, Mexico to provide cost savings and margin improvement and (vii) the Company's Net Leverage Ratio as of the end of fiscal 2024; (viii) the amount of debt to be paid down by the Company during the fourth quarter of 2024; (ix) the competitive environment in which we operate; are forward looking statements. Forward-looking statements are not based on historical facts, but instead represent our current expectations and assumptions regarding our business, the economy and other future conditions, and involve known and unknown risks, uncertainties and other factors that could cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. It is not possible to predict or identify all such risks. These risks include, but are not limited to, the risk factors that are described under the section titled "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended March 31, 2023 as well as in our other filings with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Given these uncertainties, you should not place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date they are made. Columbus McKinnon undertakes no duty to update publicly any such forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by applicable law, regulation or other competent legal authority.
Non-GAAP Financial Measures and Forward-lookingNon-GAAP Measures
This presentation will discuss some non-GAAP ("adjusted") financial measures which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP. The non-GAAP measures are noted and reconciliations of comparable GAAP with non- GAAP measures can be found in tables included in the Supplemental Information portion of this presentation.
Use of Forward-lookingNon-GAAP Financial Metrics
This presentation presents forward-looking statements regarding non-GAAP Adjusted EBITDA margin. The Company is unable to present a quantitative reconciliation of these forward- looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures because such information is not available, and management cannot reliably predict the necessary components of such GAAP measures without unreasonable effort or expense. In addition, the Company believes that such reconciliations would imply a degree of precision that would be confusing or misleading to investors. The unavailable information could have a significant impact on the Company's financial results. These non-GAAP financial measures are preliminary estimates and are subject to risks and uncertainties, including, among others, changes in connection with post-closing adjustments and the factors described above. Any variation between the Company's actual results and preliminary financial data described in this presentation may be material.
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© 2024 COLUMBUS MCKINNON CORPORATION
Global Leader in Intelligent Motion Solutions for Material Handling
- Leading global lifting and automation company providing professional-grade solutions for solving customers' critical material handling requirements
- World's 2nd Largest Hoist Company; #1 in the United States
- Leader in Precision Conveyance
- Enhancing our strategic positioning through outsized growth in precision conveyance, automation and linear motion that are less cyclical.
- Delivering significant growth and margin expansion executing our transformation through our growth framework, "CMBS" business system and 80/20 Process.
Product Mix
10%
Linear Motion
14%
Automation
16%
Conveying Solutions
60%
Lifting Solutions
Market
Capitalization1
$1.1B
Net Sales3
$1.0B
Total Addressable
Market2
$20B
3 Year Sales
Growth CAGR3
16%
World-Wide
Employees
~3,500
Adj EBITDA Margin
Expansion1
+440 bps
Year History
150
Free Cash Flow3,4
$76M
Geographic Mix
EMEA
Americas29% 65%
Manufacturing Facilities: | APAC |
6% | |
• Americas: 12 | |
- EMEA: 6
- APAC: 2
Seasoned Leader With Extensive History Of Safely, Efficiently And Ergonomically Positioning Materials | 3 |
- 2024 COLUMBUS MCKINNON CORPORATION 1 Market capitalization as of 1/31/2024; 2 Per Management Estimate, 3 Financial data represents TTM ended December 31, 2023; 4 Non-GAAP financial measure; see definition and reconciliation at the end of this Presentation; 5 On a financial covenant basis per the Company's Amended and Restated Credit Agreement
Intelligent Motion Solutions
Four Categories of Solutions to Address Customers' Unique Motion Control Needs
Lifting | Precision Conveyance | Automation | ||||||
Linear Motion
~$8.0B TAM1
- Leading global position in lifting
- Lifting capacity from 1/8 ton to ~140 tons
- Manual chain, electric chain and wire rope hoists
- Reliable, high-quality products
- End-to-enddigital solutions
~$5.2B TAM1
- Develops and manufactures complex intralogistics solutions connecting robots and workspaces with asynchronous conveying technology
- Specialty conveying provides growth platform in fragmented market
- Tailwinds from megatrends like automation, onshoring, ecommerce, electrification and life sciences
~$4.5B TAM1
- Design and develop drives and controls for lifting, linear motion and conveying systems
- Used in intelligent material handling solutions from ceiling to floor across entire product portfolio
- Solutions designed to increase uptime, enhance productivity and improve customer safety
~$2.3B TAM1
- Linear actuators with lifting capacity up to 50 tons, screw jacks, rotary unions and super cylinders
- Demonstrated leadership and differentiated offering
- Serving a breadth of end markets from rail to warehousing to defense
$20B1 Total Addressable Market with Tailwinds from Megatrends in Attractive End Markets | 5 |
© 2024 COLUMBUS MCKINNON CORPORATION 1 Per Management Estimate
Secular Growth Markets Provide Tailwinds
Precision Conveying Platform Added Attractive Vertical Markets with Enduring Tailwinds
Food,
Beverage &
Consumer
Goods
Life Sciences /
Pharma
E-Commerce
Custom designed sanitary and easy to clean conveyors engineered to the strictest USDA guidelines
Customizable designs built for precision, speed, and to FDA / industry standards for clean- room certifications
Single piece picking, robotics integration to automate picking and sorting functions
~8%1
~3%1
~2%1
Strategy Aligned With Significant Megatrends That Are Driving High-Single-Digit Growth Trends | 6 |
© 2024 COLUMBUS MCKINNON CORPORATION 1 Fiscal year 2023 sales annualized for acquisitions
CMCO Transformation Strategy
EVOLVES THE ENTERPRISE FROM CYCLICAL INDUSTRIAL TO A TOP-TIER, SECULAR GROWTH, INTELLIGENT MOTION SOLUTIONS BUSINESS
ADVANCES CMCO TO ~$1.5 BILLION IN REVENUE AND 21% ADJUSTED EBITDA
TARGETS MID-SINGLEDIGIT ORGANIC GROWTH AND $220 MILLION OF M&A GROWTH
INCREASES DIGITAL CAPABILITIES WITH INVESTMENTS IN TECHNOLOGY ENABLERS THAT SUPPORT GROWTH AND COST OPTIMIZATION
ELEVATES COMPETITIVE ADVANTAGE WITH COLUMBUS MCKINNON BUSINESS SYSTEM (CMBS)
STRENGTHENS TALENT PROCESSES, IMPROVES THE ORGANIZATION & BUILDS BENCH STRENGTH
Targeting Top-tier Performance Over The Strategic Planning Period | 7 |
© 2024 COLUMBUS MCKINNON CORPORATION
Advancing Along our Transformation Path
Targeting $1.5 Billion In Revenue and ~21% EBITDA Margin in FY2027, with a Diversified Revenue & Business Mix
REVENUE
GROWTH RATE
FY21
Linear Motion
& Automation
Lifting
Solutions
Q3 FY24
TTM
Linear Automation
Motion 14%
10%
Specialty
Conveying
16%
Lifting
Solutions 60%
FUTURE
Specialty
Conveying Linear
Motion
Automation
Lifting
Solutions
EBITDA
MARGIN
Executing Strategic Plan by Transforming the Portfolio to Higher Growth, Technology-Driven Platforms | 8 |
© 2024 COLUMBUS MCKINNON CORPORATION
CMCO
FRAMEWORKTRANSFORMATION
Performance And Shareholder Value | 9 |
Strong Track Record Creating Value Through M&A
September 2015
Acquisition of Magnetek, Inc. for ~$182M added automation capabilities
January 2017
Acquisition of STAHL CraneSystems from Konecranes for ~$218M strengthens leading global position in lifting solutions
April 2021
Acquisition of Dorner for
$485M advances Intelligent Motion strategy and creates platform for scalable growth
December 2021
Acquisition of Garvey for $74M expands conveying solutions platform
May 2023
Acquisition of montratec® for
$110M expands precision conveyance and automation
M&A Pipeline
Target Screen
2015 2016
Acquisition Committee
Feedback
Outreach
Due Diligence
2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
Decision
Programmatic
M&A
December 2018
Tire Shredder
Divestiture of Tire
Shredder Business
February 2019
Divestiture of Stahlhammer
Bommern GmbH to Turbo
Investment BV
Inc.
Transforming Columbus McKinnon Into A Top-Tier, Higher Growth, Higher Margin Enterprise | 10 |
© 2024 COLUMBUS MCKINNON CORPORATION
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Columbus McKinnon Corporation published this content on 08 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 08 March 2024 17:09:28 UTC.