CMCO
Baird 2024 Global Industrial
Conference
Gregory Rustowicz
Executive Vice President & Chief Financial Officer
Kristine Moser
Vice President, Investor Relations & Treasurer
November 14, 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 full year and second quarter fiscal 2025 guidance; (ii) our operational and financial targets and capital distribution policy; (iii) general economic trend and trends in the industry and markets; (iv) the amount of debt to be paid down by the Company during fiscal 2025; and (v) 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, 2024 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-looking Non-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-looking Non-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
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
3 Year Adj EBITDA Margin Expansion1
+450 bps
YearMarket HistoryData(3)
150
FreeNet IncomeCash Flow3 Conversion3,4
91%
Geographic Mix
EMEA
Americas28% 66%
Manufacturing Facilities:
APAC
6%
• Americas: 12
Seasoned Leader With Extensive History Of Safely, Efficiently And Ergonomically Positioning Materials
3
© 2024 COLUMBUS MCKINNON CORPORATION 1 Market capitalization as of 11/7/2024; 2 Per Management Estimate, 3 Financial data represents fiscal year 2024 ended March 31, 2024;
4 Non-GAAP financial measure; see definition and reconciliation at the end of this Presentation
Intelligent Motion Solutions
Four Categories of Solutions to Address Customers' Unique Motion Control Needs
Lifting
Precision Conveyance
Automation
Linear Motion
~$8.0B TAM1
~$5.2B TAM1
~$4.5B TAM1
~$2.3B TAM1
$20B1 Total Addressable Market with Tailwinds from Megatrends in Attractive End Markets
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© 2024 COLUMBUS MCKINNON CORPORATION 1 Per Management Estimate
Growing Secular Market Presence
Conveying Solutions Serves Less Cyclical Industries
FY 2024
Construction
Focus on Secular Growth Markets
Food,
Beverage &
Energy & Consumer
Utilities Goods
8% 8%
Transportation
(Auto, Rail &
Maritime)
14%
Material Handling
16%
General Industrial
22%
6%
Aerospace & Government
5%
Oil & Gas
5%
Chemical & Paper
Processing
4%
Life Sciences/Pharma
3%
Elevator
2%
Metals Processing
2%
Entertainment
2%
E-Commerce
Forestry 2%
1%
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
Highly Diverse End Markets With Varying Industry Cycles
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CMCO Transformation Strategy
EVOLVES THE ENTERPRISE FROM CYCLICAL INDUSTRIAL TO A TOP-TIER, SECULAR GROWTH, INTELLIGENT MOTION SOLUTIONS BUSINESS
ADVANCES CMCO TO ~$1.5B IN REVENUE AND 21% ADJUSTED EBITDA
TARGETS MID-SINGLEDIGIT ORGANIC GROWTH AND $250M 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
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© 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
FUTURE
FY24
Specialty
Linear
Conveying
Motion
Linear Automation
Motion 14%
10%
FY21
Specialty
Automation
Linear Motion & Automation
Lifting
Solutions
Conveying
16%
Lifting
Solutions
Lifting
Solutions 60%
EBITDA
MARGIN
Executing Strategic Plan by Transforming the Portfolio to Higher Growth, Technology-Driven Platforms
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© 2024 COLUMBUS MCKINNON CORPORATION
CMCO
FRAMEWORKTRANSFORMATION
Performance And Shareholder Value
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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
February 2019
Divestiture of Crane
Equipment and Service, Inc.
Transforming Columbus McKinnon Into A Top-Tier, Higher Growth, Higher Margin Enterprise
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© 2024 COLUMBUS MCKINNON CORPORATION
Disclaimer
Columbus McKinnon Corporation published this content on November 14, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 14, 2024 at 17:07:04.622.