Modine Manufacturing Company Investor Presentation August 2020 - PowerPoint PPT Presentation

Modine Manufacturing Company Investor Presentation August 2020

Forward-Looking Statements This presentation contains statements, including information about future financial performance and market conditions, accompani ed by phrases such as “believes,” “estimates,” “expects,” “plans,” “anticipates,” “intends,” and other similar “forward - looking” statements, as defined in the Pri vate Securities Litigation Reform Act of 1995. Modine's actual results, performance or achievements may differ materially from those expressed or implied in these statements because of certain risks and uncertainties, including, but not limited to those described under “Risk Factors” in Item 1A of Part I of the Company's Annua l Report on Form 10-K for the year ended March 31, 2020 and under Forward- Looking Statements in Item 7 of Part II of that same report, and in the Company’s Quarterly Rep ort on Form 10-Q for the quarter ended June 30, 2020. Other risks and uncertainties include, but are not limited to, the following: the impact of the COVID-19 pandemic on the national and global economy, our business, suppliers, customers, and employees; the overall health and price- down focus of Modine’s customers; our a bility to successfully execute our strategic and operational plans, including our ability to successfully exit the automotive business; our ability to effectively and efficiently reduce our cost structure in response to sales volume declines and complete restructuring activities and realize benefits thereon; our ability to comply with the financial covenants in our credit agreements and to fund our global liquidity requirements efficiently, particularly in light of the volatility and negative impacts to the financial markets resulting from COVID-19; operational inefficiencies as a result of program launches, unexpected volume increases, product transfers, and delays or inefficiencies resulting from restrictions imposed in response to the COVID-19 pandemic; economic, social and political conditions, changes and challenges in the markets where Modine operates and competes, including foreign currency exchange rate fluctuations, tariffs (and potential trade war impacts resulting from tariffs or retaliatory actions), inflation, changes in interest rates or tightening of the credit markets, recession, restrictions associated with importing and exporting and foreign ownership, public health crises, and the general uncertainties about the impact of regulatory and/or policy changes, including those related to tax and trade, the COVID-19 pandemic and other matters, that have been or may be implemented in the U.S. or abroad, and continuing uncertainty regarding the impacts of “Brexit”; the impact on Modine of any significant increases in commodity prices, particularly aluminum, copper, steel and stainless steel (nickel) and other purchased component inventory, and our ability to adjust product pricing in response to any such increases; the nature of and Modine’s significant exposure to the v ehicular industry and the dependence of this industry on the health of the economy; the concentration of sales within our CIS segment attributed to one customer; Modine ’s ability to recruit and maintain talent in managerial, leadership, and administrative functions; Modine’s ability to protect its proprietary information and i ntellectual property from theft or attack; the impact of any substantial disruption or material breach of our information technology systems; costs and other effects of environmental investigation, remediation or litigation; and other risks and uncertainties identified by the Company in public filings with the U.S. Securities and Exchange Commission. Forward-looking statements are as of the date of this presentation, and the Company does not assume any obligation to update any forward-looking statements. 2

Modine at a Glance A Diversified Industrial Company with a Well Positioned Product Portfolio Modine Manufacturing Company has been leading FY’20 Sales by Business Segment the way in thermal management since 1916. We Commercial & design, manufacture and test heat transfer products Industrial Solutions 22% 31% for a wide variety of applications and markets. Building HVAC Systems Heavy Duty Equipment We're at work in practically every corner of the 11% Automotive 36% world, delivering the solutions our customers need, where they need them. FY’20 Sales by Geographic Region Ticker MOD (NYSE) 11% Americas Founded 1916 in Racine, WI EMEA FY’20 Net Sales $2.0 billion 39% Asia Employees 11,300 50% Locations Operate in 17 countries 3

Serving Diversified Industrial Markets Modine provides thermal management solutions focusing on industrial markets with strong macro trends Market Industrial Technology Customers Macro Trends Segments Markets Thermal management Channel (OEMs and System solutions Commercial Truck Commercial Integrators) Transit Bus Transport Specialty Vehicles Greenhouse Gas Reduction Heat Med, Heavy Agriculture Commercial Refrigeration Exchangers Food Chain Industrial Refrigeration OEMs Refrigerated Transport Energy Efficiency Commercial Heating Ventilation Fluid Comfort Distributors Residential AC Management Commercial AC Population Mobile AC Growth End-Users and HVDC Power Conversion Infrastructure Generator Sets Specifiers Mining and Construction Controls Data Usage and Storage Data Centers Process Industrial Growing Greenhouses 4

Strategic Transformation • Data centers • Strong balance sheet Accelerate • Specialty vehicles and bus • Improved free cash flow Optimize Organic • Commercial refrigeration • Disciplined capital allocation Capital Growth • Specialty coatings • Strategic acquisition strategy • Ventilation and air conditioning • Auto exit strategy • Manufacturing efficiency Leverage • CEO transition plan • Pricing and procurement initiatives People Improve • Continuous improvement focus & Profitability • Focus on systems and technology • Leadership behavior model Culture • Leverage SG&A reductions 5

Strategic Actions and Priorities Data Center CIS Margin Renewed Focus on Capital Reallocation CEO Transition Exit Auto Expansion Improvement Program HDE • CEO search • Execute sale of • Grow coatings & • Grow market • Focus spending • Leverage existing share in bus and underway liquid-cooled coolers business on high margin footprint in North business specialty vehicle businesses America and • Accelerate growth • Optimize pricing Europe • Sell or wind-down model • Drive operational • Reduce overall • Drive industrial air-cooled excellence and level of capex • Target new and strategy • Drive efficiency business margin spending existing customers and margin improvement • Considering • Run on a cash improvement in • Strategically outside of our UK internal and neutral basis coils increase IT spend markets external during wind-down to optimize candidates period efficiency 6

Financial Trend Graphs 7 * See Appendix for Non-GAAP reconciliations

Commercial & Industrial Solutions (31%) FY 2020 Sales by End Market 7% 8% Commercial HVAC Refrigeration 42% 17% Data Center Coatings/Other Industrial 26% FY 2020 Sales by Product 8% 23% Coils Coolers Coatings/Other 69% FY 2020 Sales by Geography FY Ended March 31 2020 2019 7% Net Sales $623.9 $707.6 Americas Adjusted EBITDA* 77.9 59.6 Europe 37% 56% Asia Adjusted EBITDA margin* 9.6% 11.0% 8 * See Appendix for Non-GAAP reconciliations

Building HVAC Systems (11%) FY 2020 Sales by End Market 1% 19% 41% Heating Ventilation & AC Data Center Other 39% FY 2020 Sales by Product 17% Heating 41% Air Conditioning 20% Ventilation Aftersales/Other 22% FY Ended March 31 2020 2019 FY 2020 Sales by Geography Net Sales $221.1 $212.4 37% North America Adjusted EBITDA* 32.1 39.8 EMEA 63% Adjusted EBITDA margin* 18.0% 15.1% 9 * See Appendix for Non-GAAP reconciliations

Heavy Duty Equipment (36%) FY 2020 Sales by End Market 15% Commercial Vehicle 40% 13% Off-Highway Other Automotive 32% FY 2020 Sales by Product 9% Powertrain Cooling 31% Engine Products 60% Other FY Ended March 31 2020 FY 2020 Sales by Geography Net Sales $745.9 16% Americas Adjusted EBITDA* 66.7 19% Europe Adjusted EBITDA margin* 8.9% 65% Asia 10 * See Appendix for Non-GAAP reconciliations

Automotive (22%) FY 2020 Sales by Product 2% 31% Powertrain Cooling Engine Products 67% Other FY 2020 Sales by Geography 12% 16% Americas FY Ended March 31 2020 Europe Net Sales $444.9 Asia Adjusted EBITDA* 26.0 72% Adjusted EBITDA margin* 5.8% 11 * See Appendix for Non-GAAP reconciliations

Appendix