This presentation contains statements that are forward-looking within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The words "anticipates," "believes," "intends," "estimates,"
and "expects," or similar anticipatory expressions, usually identify forward-looking statements. These statements are based on management's current expectations that are based on assumptions that are subject to risks and uncertainties. Actual results may vary because of variations between these assumptions and actual performance. Investors are referred to Twin Disc's fiscal year 2022 Annual Report and Form 10-K under the caption "Risk Factors," which outlines certain risks regarding the Company's forward-looking statements, including but not limited to the impact of general economic conditions and the cyclical nature of many of the Company's product markets; foreign currency risks and other risks
associated with the Company's international sales and operations; the ability of the Company to successfully implement price increases to offset increasing commodity costs; the ability of the Company to generate sufficient cash to pay its indebtedness as it becomes due; and the possibility of unforeseen tax consequences and the impact of tax reform in the U.S. or other jurisdictions. Copies of the Company's SEC filings may be obtained from the SEC, and are available on Twin Disc's web site (www.twindisc.com), or by request from the Investor Relations department at the Company. The Company assumes no obligation, and disclaims any obligation, to publicly update or revise any forward-looking statements to reflect subsequent events, new information, or otherwise.
2
TRANSACTION OVERVIEW
Key Takeaways
Acquiring Katsa Oy for €21 million (approximately $23 million) in all-cash transaction
Leading European manufacturer of high-quality power transmission components and gearboxes for industrial and marine end-markets
Broadens Twin Disc's global reach while adding complementary products to grow offerings in the industrial, marine and hybrid / electrification space
Significantly diversifies and enhances offerings within Twin Disc's
Industrial product line
Creates substantial commercial, manufacturing, and purchasing synergies, anticipated to be accretive to earnings per share within 24 months
Expected to close in first half of calendar year 2024
3
KATSA AT-A-GLANCE
Ikaalinen
Tampere
Company Overview
Founded in 1955, currently owned by 2nd generation family members
Approximately 175 employees, with operations based in Tampere and Ikaalinen, Finland
Revenues of €33 million for fiscal year ended September 30, 2023
Long-termcustomer relationships with leading European machinery OEMs
Strong in-house capabilities for engineering, development, and manufacturing with well-invested production assets
4
KATSA AT-A-GLANCE
FY 2023 Revenue Breakdown
Service
Components
13%
31%
Gearboxes
56%
Key Markets
Marine & Energy
Mobile Working Machines
Transmission & Vehicle Propulsion
5
Attachments
Original Link
Original Document
Permalink
Disclaimer
Twin Disc Incorporated published this content on
06 March 2024 and is solely responsible for the information contained therein. Distributed by
Public, unedited and unaltered, on
06 March 2024 15:07:10 UTC.
Twin Disc, Incorporated designs, manufactures and sells marine and heavy duty off highway power transmission equipment. The Company has two reportable segments: Manufacturing and Distribution. The Companyâs products offered include marine transmissions, azimuth drives, surface drives, propellers and boat management systems as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches, controls systems and non-Twin Disc manufactured products. The Company sells its products to customers primarily in the pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company has manufacturing locations in the United States, Belgium, Italy, Switzerland, and the Netherlands. In addition to these countries, it has distribution locations in Singapore, China, Australia, and Japan.
TWIN DISC, INCORPORATED 
