Actuant Annual Investor Day Actuant Annual Investor Day Hilton New York October 4, 2011
Safe Harbor Statements in this presentation that are not historical are considered “forward-looking Statements in this presentation that are not historical are considered forward looking statements” and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in Actuant’s Securities and Exchange Commission filings. All estimates of future performance are as of September 28, 2011. Actuant’s inclusion of these estimates or targets in the presentation is not an update, confirmation, affirmation or g p p disavowal of the estimates or targets. In this presentation certain non-GAAP financial measures may be used Please see the In this presentation certain non GAAP financial measures may be used. Please see the supplemental slides at the end of this presentation or visit the Investors section of Actuant’s website (www.actuant.com) for a reconciliation to the appropriate GAAP measure. 2
Format / Agenda 10:00-10:45 10 00 10 45 W l Welcome / Agenda / Format / A d / F t K. Bauer K B Opening Remarks M. Goldstein 10:45-11:15 10:45 11:15 Panel Discussion Panel Discussion Segment Leaders Segment Leaders T. Wozniak 11:15-12:00 Session 1 12:00-1:00 Buffet Lunch / Session 2 1:00-1:45 Session 3 1:45-2:30 Session 4 2:30-3:00 2 30 3 00 Cl Closing Remarks i R k A L A. Lampereur B. Arzbaecher Final Q&A All Welcome Investors, Analysts and Guests! 3
Leadership Introductions Arzbaecher • Entire Leadership Team (“LT”) in CEO NYC for quarterly meeting held Monday Monday Boel Lampereur Goldstein Grissom Wozniak EVP CFO COO Human Resources Corporate Development • Organizational Changes in Past Year: – David Scheer – EVP, Electrical Segment Kobylinski Scheer Global Support Emerging Country Blackmore Leaders Industrial / Energy Electrical Functions Engineered Solutions – Bill Axline – EVP, Global , Hans van Nikkelen Kuijper jp Mark Sefcik Mark Sefcik Jim Scott Jim Scott Jian Xie Jian Xie Jan Smit Jan Smit Customer Relationships Mastervolt Enerpac LEAD: G+I China Power-Packer / Gits Jan de Koning Bill Axline Varun Rao Jim Hawkins Hydratight Global Customers India Weasler – John Buck – Maxima Leader John Thomas Ranga Ranganathan Jeff Baldwin Cortland Elliott/Nielsen/Sanlo LEAD: Op Excellence – Varun Rao – India Leader V R I di L d John Buck J h B k Maxima – Jim Hawkins, Weasler Leader – Hans van Nikkelen Kuijper – – Hans van Nikkelen Kuijper – Mastervolt Leader 4
Table Attendees Rotational Table Assignments P o ided to Rotational Table Assignments Provided to Each Attendee (with name badge) Industrial Industrial Electrical Electrical Brian Kobylinski David Scheer Mark Sefcik Bill Axline Bob Arzbaecher E Energy E Engineered Solutions i d S l ti John Thomas Bill Blackmore Jan de Koning Jan de Koning Jan Smit Jan Smit Andy Lampereur Mark Goldstein Remaining Management Team will Observe but Not Formally Participate 5
Mark Goldstein- COO Opening Remarks 6
Fiscal 2011 Highlights B ildi Building On Our Track Record of Predictability and O O T k R d f P di t bilit d Strong Financial Performance • Robust free cash flow $158 million representing 127% conversion of • Robust free cash flow - $158 million representing 127% conversion of net earnings • Generated 56% increase in EPS from continuing operations to $1.68 Generated 56% increase in EPS from continuing operations to $1.68 • Significantly improved operating margins – up 150 basis points year- over-year (excluding prior year restructuring) • Portfolio management – completed sale of European Electrical; strategically invested in energy and agriculture with Mastervolt and Weasler Weasler • Robust core growth of 13%, with 25% increase in emerging market revenues revenues • Significant progress on Growth + Innovation cultural transformation 7
Continued Transformation Competencies - Expanding from the Core Competencies - Expanding from the Core Growth + 2003-2008 Expansion: Innovation Tripled sales and profits. Acquired nearly • 25 businesses. Disciplined LEAD / AIM processes for continuous • Acquisitions improvement. AIM Scalable management structure and talent S l bl d l • upgrades. Operational Excellence 2009 – 2010 Great Recession: (LEAD) ( ) Si Significant cost structure rightsizing – ifi t t t t i ht i i • standardized and simplified. Launch of Growth + Innovation – • ROIC Focused investment in future core growth. investment in future core growth. Business Model 2011 and beyond -- Sustainable Growth: Portfolio Focus on most attractive markets and • Management customer segments. g Leadership L d hi Innovation to support core growth. • 8
G+ I - We’ve Invested in Growth Commitment and execution related to Total G+I Related Headcount • Additions increased investments � 90 positions added to drive Growth + G ES 22% Innovation Industrial � $14 million product development / market 39% research / pressure test spend h / d Electrical 15% More than 16 pressure tests executed or • in process across Actuant p ocess ac oss ctua t Energy 24% Segment growth councils formed and • operating “Pressure Test – accelerated narrow accelerated, narrow Metrics and processes developed and • market testing of a product or service rolled out concept to determine commercialization commercialization Strategic plans developed with broader Strategic plans developed with broader • prospects” focus on G+I 9
Excited About Our Growth Prospects Key Trends Energy Demand gy Global Infrastructure Food Requirements q Natural Resources / Sustainability • Global power generation • Emerging market build-out • Population growth and oil & gas maintenance • Mining / resources • Transportation • Affluence / protein diets • New installations • Emission reduction • Bridges, tunnels • Biofuels solutions • Demanding technology & • Rail • Rail • Agriculture equipment • Agriculture equipment methods (deep water, oil • Renewables (solar, wind) • Construction equipment • Efficient seeding sands, natural gas) • Energy efficiency technology • Alternative energy (nuclear, wind, solar) Key Products / Technology • Joint Integrity solutions • Integrated solutions – • Instrumentation & controls • Solar inverters heavy lift technologies • Nuclear maintenance tools • PTO drivelines • EGR and other air flow • Hydraulic cylinders • Pipeline connectors Pipeline connectors • Flexible shafts Flexible shafts • Mining safety & productivity Mining safety & productivity • Concrete tensioning • Heavy lift rope / slings • High efficiency • Truck cab-tilt & latch transformers • Seismic exploration cables 10
Emerging Market Focus All Segments I ncreased Emerging Market Sales in 2011 All Segments I ncreased Emerging Market Sales in 2011 Duplicating successful China structure in • India - consolidated facilities and India Country Leader Country Leader � Heavy-duty truck launch in late 2012 � Multiple businesses expanding in I di India Continued China penetration • � Enerpac Integrated Solutions, g Energy, Maxima Middle East & Brazil energy / infrastructure expansion • Early penetration in Africa Early penetration in Africa • � Enerpac infrastructure opportunities � Energy sales up 250% Total Emerging Markets Grew 25% in 2011 – Double ATU Consolidated Core Growth of 13% 11
Continue to Pursue Attractive Acquisitions Maintaining our Disciplined Approach to Maintaining o Disciplined App oach to Acquisitions • Acquisitions remain a primary q p y Niche exposure to faster growing Niche exposure to faster growing component of our business model end markets • Robust pipeline of potential acquisition ria opportunities opportunities Cost and sales synergies Cost and sales synergies on Criter • Multiples are toward upper end of historical average but not as high as Leadership in niche market Leadership in niche market prior peak in 2007/2008 prior peak in 2007/2008 cquisitio • Ample free cash flow and capital for Strong management teams acquisitions A • Target leverage range – 1.5-2.5X net Debt/EBITDA Attractive EBITA ROIC returns 12
In Summary… Excited about the content and participants today • Hope you take away the following messages: • – Well positioned to build our growth capabilities – Secular growth trends provide a broad array of opportunity – Strong talent and depth in organization – Embedded culture of continuous improvement – Cash flow / capital deployment to deliver shareholder value Consistent Strategy and Strong Execution Drive Results 13
Panel Discussion Addressing Two Often Asked I nvestor Questions H How do you source, evaluate and integrate acquisitions? d l t d i t t i iti ? • – Brian Kobylinski – Bill Blackmore Bill Blackmore – Bill Axline – Ted Wozniak How is the deployment of Growth + Innovation going within the • segments? – Brian Kobylinski Brian Kobylinski – Bill Blackmore – David Scheer 14
Brian Kobylinski – EVP Industrial / Energy Mark Sefcik Enerpac Leader Mark Sefcik – Enerpac Leader Table 1 – Industrial Segment 15
Recommend
More recommend
