The Manitowoc Company (MTW) 16th Annual Midwest Ideas Conference summary

Market and Industry Outlook

• Crane market is at or near the bottom of its cycle, with stock trading below tangible book value, presenting an opportunity for investors.

• Secular growth drivers include global infrastructure spending, data center construction, and energy projects, especially in the US, Europe, and Middle East.

• European tower crane market is recovering, with housing and infrastructure initiatives in Germany, UK, and France supporting demand, and four consecutive quarters of year-over-year growth in the EU tower crane business.

• Middle East projects, such as Saudi Vision 2030 and UAE airport expansion, are expected to drive long-term crane demand.

• Cyclical recovery is underway, with aging crane fleets, pent-up demand in Europe, and value per machine increasing due to larger cranes and inflation.

Strategic Transformation and Growth Initiatives

• Transitioning from a product-focused to a customer-oriented, service-driven business, emphasizing aftermarket sales and recurring revenue streams.

• Achieved 67% growth in non-new machine sales from 2020 to 2024, targeting $1B in aftermarket revenue.

• Expanded field service techs by over 38% in North America and 24% in Europe, with new branches and rental fleet investments.

• Organic growth is prioritized due to high leverage, with new and upgraded locations in the US, Europe, Australia, and Peru.

• Continuous improvement initiatives (Manitowoc Way) have enhanced safety, efficiency, and environmental performance, reducing injury rates and introducing new models.

M&A and Capital Allocation

• Successful acquisitions in 2021 (H&E crane business, Aspen Equipment) and multiple dealer territories and service branches since 2020, adding $30M+ accretive EBITDA and expanding aftermarket reach.

• Creative territory and asset deals, along with greenfield locations, have accelerated service network growth.

• Invested $64M in rental fleet, $51M in branch growth, and $180M in strategic acquisitions since 2020.

• Current leverage is around 4x, with a focus on deleveraging to below 3x before considering buybacks or further acquisitions.

• Capital allocation has prioritized aftermarket, rental fleet, and branch expansion to support growth.