Robert W. Baird‘s 2016 Global Industrial Conference Hubertus Muehlhaueser – President and CEO John Stewart – Senior Vice President and CFO Rich Sheffer – Vice President of Investor Relations and Treasurer Chicago, IL – November 9, 2016
Safe Harbor Statement
Any statements in this presentation regarding our business that are not
historical facts are “forward-looking statements”. These statements are
based on the current expectations of the management of the company and
our future results could differ materially from any implied projections or
forward-looking statements made today. Our actual results may be affected
by many important factors, including risks and uncertainties identified in
our press releases and in our SEC filings. We do not undertake any
obligation to publicly update or revise any forward-looking statement,
whether as a result of new information, future events, or other
circumstances.
© Manitowoc Foodservice, Page 2
History as an Industry Consolidator
Manitowoc is founded by Elias Gunnell,
Charles West, and Lynford Geer
Manitowoc becomes
a public company on NASDAQ
Acquires Enodis, a global
foodservice manufacturer, (required to divest Scotsman
post-acquisition)
Manitowoc stock is listed on the NYSE
Manitowoc begins producing
commercial ice-making machines
1902 1945 1971 1995 2015 2008
Manitowoc announces plan to separate into
2 distinct companies Begins manufacturing
freezers
Acquires Shannon Group, manufacturer of commercial
refrigeration equipment
Acquires SerVend International, maker
of ice & beverage dispensers
Manitowoc Foodservice
debuts as stand-alone company
NYSE: MFS
2016 1966 1993 1997
Acquires Scotsman Industries in the U.S.,
expanding foodservice to include refrigeration
technologies
Samuel & William Berisford founded a small grocery & pharmacy; store begins dealing in sugar merchant
business
S&W Berisford
incorporates as a public company
Berisford acquires Welbilt in U.S.;
enters the commercial foodservice equipment
market Berisford changes
name to Enodis
Sells off its non-core operations to
focus on core business in the
U.S. foodservice market
New range of equipment launched to meet
fast-food industry's attempt to introduce
"healthier" foods
Welbilt acquires Frymaster and 3 other companies in the Sunbeam
Group
Welbilt acquires Lincoln Foodservice Products, a manufacturer of ovens,
commercial kitchen supplies & other food-
service equipment
1851 1910 1994 1995 1999 2000 2002 2004 2008 1982
© Manitowoc Foodservice, Page 3
Manitowoc Foodservice at a Glance
Offering: Full-line of hot/cold products & systems
End Markets: All commercial kitchen operators Channels: 3000+ distributors & dealers Employees: Approx. 5,500 globally Presence: 37 locations in 12 countries Capabilities: World class design, manufacturing,
parts & service
2015 Revenue $1.5B
75% Americas
15% EMEA
10% APAC
by Region
by End Market1 by Channel2
Other 2%
Retail 8%
Business & Industry 10%
Education 6%
Healthcare 8%
Travel & Leisure 8%
Restaurants 58%
Other General Markets 4%
Key Accounts 25%
Other Chains 7%
Dealers, Distributors,
Buying Groups
64%
© Manitowoc Foodservice, Page 4
1Estimate for MFS Americas 2Reflects gross sales for 2015. Includes all third party product sales.
Full Line Product Offering with Leading Brands ...
Commercial Fryers
Beverage Equipment
12 brands that command #1 or #2 market share positions
Cold products (~50% revenue) Hot products (~35% revenue) Parts & Service (~15% revenue)
Walk-in Refrigeration
Freezers & Prep. Stations
Commercial Ranges, Grills, and Induction
Combi- and High Speed Ovens
Ice-cube machines
© Manitowoc Foodservice, Page 5
Long Standing Customer Relationships with large End Customers as well as US Channel Partners
Large End Customers typically designated as “Key Accounts” Top 5 Global End Customers
US Channel Partners typically referred to as “General Market”
2015
Customer % of FY15 Revenue
# of Years¹
End Customer 1 6.0% 53 End Customer 2 4.0% 56 End Customer 3 3.8% 26 End Customer 4 2.1% 34 End Customer 5 1.4% 49
2015
Customer % of FY15 Revenue
# of Years¹
Dealer Customer 1 4.8% 7 Dealer Customer 2 4.8% 28 Dealer Customer 3 4.0% 27 Dealer Customer 4 3.2% 7 Dealer Customer 5 2.5% 56
Top 5 North America Dealer Customers
Over 40 years average relationship with our top 5 end customers and
over 20 years average relationship with our top 5 dealer customers
© Manitowoc Foodservice, Page 6
1Source: Company estimates.
Levers that will Bridge the Gap to our Margin Ambition
EBITA Margin
Ambition “Mid-
twenties”
2015 EBITA
Margins “Mid-teens”
Product Cost & Platforms
Business Simplification
Parts & Service
New Products and Systems
Business Right Sizing
Lean Manufacturing & Supply Chain
The “1000 BPS Challenge”…
...gap closure is a multi-year journey.
© Manitowoc Foodservice, Page 7
Solid execution of margin improvement levers
0
100
200
300
400
500
600
700
800
2015 Q3 Q4 2016 Q1 Q2 Q3
© Manitowoc Foodservice, Page 8
5 consecutive quarters of improvement
1 Non-GAAP measures. See Appendix for GAAP presentation and reconciliation of non-GAAP measures.
Adjusted operating EBITA margin1 improvement vs. prior year
BPS
2016 Third Quarter Results
2016 Q3 2015 Q3 Δ
Organic net sales in constant currency1 $389.7 $389.5 0.1%
- FX translation impact (5.7) --- -1.5%
Organic net sales1 $384.0 $389.5 -1.4%
Adjusted Operating EBITA margin1 18.8% 15.0% +380 bps
Amortization expense ($7.8) ($7.9)
Net interest income (expense) ($25.0) $3.9
Other income (expense) ($3.6) $1.6
Effective tax rate 22.2% 30.8%
Adjusted net earnings1 $27.4 $42.2 -35.1%
Adjusted EPS1 $0.20 $0.31 -35.5%
© Manitowoc Foodservice, Page 9
Operational improvements delivering solid margin growth
1 Non-GAAP measures. See Appendix for GAAP presentation and reconciliations of non-GAAP measures.
2016 Full-Year Guidance Details
Organic sales growth 0% to up 2%
Adjusted EBITA margin Between 16% to 17% range (excludes separation, restructuring and asset impairment expenses)
Amortization expense Between $30 and $33 million
Depreciation expense Between $17 and $20 million
Interest expense Between $84 and $86 million
Effective tax rate Between 26% and 29% (between 23% and 26% inclusive of discrete items realized year-to-date)
Adjusted EPS Between $0.60 and $0.70 per share range (excludes separation, restructuring and asset impairment expenses)
Capital expenditures Between $16 and $20 million
Debt paydown Between $100 and $120 million
© Manitowoc Foodservice, Page 10
© Manitowoc Foodservice, Page 11
APPENDIX: ADDITIONAL MATERIALS
2016 Third Quarter Results - GAAP
2016 Q3 2015 Q3 Δ Net sales $384.0 $425.3 -9.7%
Earnings from operations margin 15.8% 12.7% +310 bps
Amortization expense ($7.8) ($7.9)
Net interest income (expense) ($25.0) $3.9
Other income (expense) ($3.6) $1.6
Effective tax rate 22.2% 30.8%
Net earnings $24.9 $41.1 -39.4%
EPS $0.18 $0.30 -40.0%
© Manitowoc Foodservice, Page 12
2016 Third Quarter Organic Net Sales in Constant Currency
(US$ in millions) 2016 Q3 2015 Q3
Net sales $384.0 $425.3
Less: Kysor Panel Systems sales --- (38.5)
Plus: Welbilt Thailand sales --- 2.7
Organic net sales $384.0 $389.5
Foreign currency translation 5.7 ---
Organic net sales in constant currency $389.7 $389.5
© Manitowoc Foodservice, Page 13
2016 Adjusted Operating EBITA by Quarter
(US$ in millions) Q1 Q2 Q3 2016 YTD
Net earnings $18.1 $15.1 $24.9 $58.1
Incomes taxes 4.6 4.1 7.1 15.8
Other (income) expense, net 2.4 3.6 3.6 9.6
Interest (income) on notes with MTW, net 0.1 --- --- 0.1
Interest expense 8.5 27.0 25.0 60.5
Asset impairment expense --- --- 1.7 1.7
Restructuring expense 1.3 0.3 0.6 2.2
Separation expense 3.0 1.3 1.4 5.7
Amortization expense 7.8 7.9 7.8 23.5
Adjusted Operating EBITA $45.8 $59.3 $72.1 $177.2
Adjusted Operating EBITA margin1 14.1% 16.1% 18.8% 16.4%
© Manitowoc Foodservice, Page 14
1 Adjusted Operating EBITA margin is calculated by dividing the dollar amount of Adjusted Operating EBITA by net sales.
2015 Adjusted Operating EBITA by Quarter
(US$ in millions) Q1 Q2 Q3 Q4 FY2015
Net earnings $14.0 $36.9 $41.1 $65.1 $157.1
Incomes taxes 6.5 17.0 18.3 (2.5) 39.3
Other (income) expense, net (0.4) (0.2) (1.6) (19.9) (22.1)
Interest (income) on notes with MTW, net (4.7) (4.6) (4.2) (2.3) (15.8)
Interest expense 0.3 0.4 0.3 0.4 1.4
Asset impairment expense --- --- --- 9.0 9.0
Restructuring expense 0.7 (0.2) 0.8 3.3 4.6
Separation expense --- 0.5 1.0 3.7 5.2
Amortization expense 7.8 7.9 7.9 7.8 31.4
Adjusted Operating EBITA $24.2 $57.7 $63.6 $64.6 $210.1
Adjusted Operating EBITA margin1 7.0% 14.2% 15.0% 16.5% 13.4%
© Manitowoc Foodservice, Page 15
1 Adjusted Operating EBITA margin is calculated by dividing the dollar amount of Adjusted Operating EBITA by net sales.
2014 Adjusted Operating EBITA by Quarter
(US$ in millions) Q3 Q4
Net earnings $62.9 $27.4
Incomes taxes (13.0) 10.3
Other (income) expense, net 1.6 (0.9)
Interest (income) on notes with MTW, net (4.0) (4.5)
Interest expense 0.2 0.4
Asset impairment expense --- 1.1
Restructuring expense 0.8 0.4
Separation expense --- 0.4
Amortization expense 7.9 7.9
Adjusted Operating EBITA $56.4 $42.5
Adjusted Operating EBITA margin1 13.5% 11.4%
© Manitowoc Foodservice, Page 16
1 Adjusted Operating EBITA margin is calculated by dividing the dollar amount of Adjusted Operating EBITA by net sales.
2016 Third Quarter Adjusted Net Earnings and Adjusted Net Earnings per Share (US$ in millions) 2016 Q3 2015 Q3
Net earnings $24.9 $41.1
Asset impairment expense 1.7 ---
Restructuring expense 0.6 0.8
Separation expense 1.4 1.0
Tax effect of adjustments (1.2) (0.7)
Adjusted net earnings $27.4 $42.2
© Manitowoc Foodservice, Page 17
2016 Q3 2015 Q3
Diluted earnings per share $0.18 $0.30
Asset impairment expense per share 0.01 ---
Restructuring expense per share 0.01 0.01
Separation expense per share 0.01 0.01
Tax effect of adjustments per share (0.01) (0.01)
Adjusted net earnings per share $0.20 $0.31
© Manitowoc Foodservice, Page 18
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