The Manitowoc Company, Inc. SUNTRUST MIDWEST INDUSTRIAL CONFERENCE - PowerPoint PPT Presentation

The Manitowoc Company, Inc. SUNTRUST MIDWEST INDUSTRIAL CONFERENCE KOHLER, WI, JUNE 22, 2017

Forward- Looking Statements Safe Harbor Statement Any statements contained in this presentation that are not historical facts are “forward -looking statements.” These statements are based on the current expectations of the management of the company, only speak as of the date on which they are made, and are subject to uncertainty and changes in circumstances. We undertake no obligation to update or revise forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements include, without limitation, statements typically containing words such as “intends,” “expects,” “anticipates,” “targets,” “estimates,” and words of similar import. By their nature, forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by such forward-looking statements. For a list of factors that could cause actual results to differ materially from those discussed or implied, please see the company’s periodic filings with the SEC, particularly those disclosed in “Risk Factors” in the company’s Form 10 -K for the fiscal year ended December 31, 2016. Any “forward - looking statements” in this presentation are intended to qualify for the safe harbor from liability under the Private Securities Litigation Reform Act of 1995. Non-GAAP Measures The company uses certain non- GAAP measures in discussing the company’s performance. The company believes that these non-GAAP financial measures provide important supplemental information to both management and investors regarding financial and business trends used in assessing its results of operations; however, these measures are not substitutes for GAAP financial measures. The reconciliation of those measures to the most comparable GAAP measures is detailed in Manitowoc’s press release for the first-quarter of 2017, which is available at www.manitowoc.com, together with this presentation. 2

Industry-Leading Crane Company  Global leader in lifting equipment  Global customer financing and aftermarket solutions  Serving wide range of end markets  Stable customer base across diverse range of geographies  Strategically located manufacturing footprint allows us to serve attractive markets globally  Leader in innovation  Expect significant upside from near-term operational improvements Early stages of transformation to a high quality, higher margin crane company compared to peers 3

Strong Aftermarket Solutions Aftermarket Parts Skills Training Fleet Management/ and Service Diagnostics (Tower) Financing Rebuild/Refurbish Special Applications 4

Transformation: The Conditions are Right Stand-alone Crane Company • Foodservice spin-off complete • Right-sizing for new company structure Re-Capitalized Balance Sheet • Sufficient liquidity • Working capital focus Operationally Focused Management Team • Demonstrated record of turnarounds • Lean acceleration to drive margin improvement Cyclical Down-Turn • Increasing manufacturing flexibility to manage through the cycle 5

Global Footprint Manufacturing footprint and extensive sales and customer service reach to serve both mature and emerging markets 6

The Manitowoc Way Customers 1. Margin Expansion Velocity 2. Growth Innovation 3. Innovation Shareholders Employees 4. Velocity 7

Strategic Priorities Optimize Global Capacity • Increase Manufacturing Agility • Margin Expansion Improve Productivity • Reduce Material Cost • Renew Focus on Quality & Reliability • Growth Strengthen Channel Management • Increase Market Share • Accelerate New Product Development • Innovation Leverage Advanced Manufacturing Technologies • Implement The Manitowoc Way • Re-invigorate the Company Culture • Velocity Strengthen Balance Sheet by Better Working Capital Mgmt. • 8

Progress on Strategic Priorities Aligning capacity to current demand • -- plant relocations on schedule Margin Expansion Unwavering focus on cost • management and to eliminate waste Key account management program • Growth Military project on schedule • Aftermarket initiatives • Eight new crane introductions at • ConExpo Innovation Two cranes developed from ground • up in six months Implement The Manitowoc Way • Velocity Kaizen-driven success stories • Actions to Target Double Digit Operating Margins (EBITA) by 2020 9

ConExpo 2017 Summary Over one year of planning • 5 weeks to construct the stand • 5 days on the show • 12 cranes on display (8 brand new) • 25+ customer celebrations & crane handovers • 128,000 attendees from 150 countries • Excellent customer reception to new products • Orders exceeded expectations • 10

ConExpo 2017 11

ConExpo 2017 12

ConExpo 2017 13

ConExpo 2017 14

A P P E N D I X 15

Q1 2017 Summary Backlog up 56% sequentially • Nearly half of order from new products • Revenue down 28.5 percent • Financial Focused actions to manage costs and right-size the • Summary business Improved cash flow YOY with no borrowings on ABL • facility at quarter end Strong customer reception to new products at ConExpo • Business Mobile cranes: Soft market conditions in Americas & • Highlights Middle East Tower cranes: stable, in line with expectations • 16

Financial & Other Key Metrics Q1 2016 (3) Q1 2017 YoY ∆ Orders $ 488.3 $ 417.1 17.1 % Net Sales $ 305.8 $ 427.4 (28.5)% SG&A Expense $ 63.3 $ 72.4 (12.5)% Operating (loss) income $ (23.7) $ 0.8 n/m Non-GAAP adjusted operating $ (11.4) $ 7.3 n/m (loss) income (1) Net Loss from contiuing $ (36.0) $ (192.7) 81.3 % operations Non-GAAP adjusted net loss from $ (24.2) $ (7.6) n/m continuing operations (1) $ (0.8) $ 19.5 n/m Non-GAAP Adjusted EBITDA (1) $ (32.5) $ (163.4) 80.1 % CFOA (2) Capital Expenditures $ 3.8 $ 10.9 (65.2)% Backlog $ 506.3 $ 502.3 0.8 % Book-to-bill 1.60 0.98 63.6 % (1) Please see appendix for reconciliation of GAAP to non-GAAP measures (2) Cash Flow from Operating Activities of continuing operations (3) Reflects the retrospective change in accounting for inventories from LIFO to FIFO in 2016 17

Situational Analysis Mobiles Towers Residential and Commercial Uncertainty on industry trough • • market recovery Depressed energy markets • Stable resale values • Infrastructure investments • Flat rental rates • Lower resale values • Strengthening utilization rates in • Europe and North America, Lower rental rates • declining in Latin America and Middle East Lower utilization rates • Persistently weak market conditions; Weak market environment; but Looking for signs of improving stabilization 18

Historical Manitowoc Crane Volume Crane volumes are currently near cyclical lows (# of units sold) MOBILES Towers 2009 2010 2011 2012 2013 2014 2015 2016 2009 2010 2011 2012 2013 2014 2015 2016 19

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