Modine Manufacturing Company · NYSE:MOD
Modine Manufacturing — Investor Presentation (November 2024)
25 slides from Modine Manufacturing's investor presentation, November 2024
Slide 1: Investor Presentation November 2024
INVESTOR PRESENTATION November 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains statements, including information about future financial performance and market conditions, accompanied by phrases such as “believes,” “estimates,” “expects,” “plans,” “anticipates,” “intends,” “projects,” and other similar “forward-looking” stat
Slide 3: Our Vision, Purpose, Mission, Values
OUR OUR OUR OUR VISION PURPOSE MISSION VALUES Always evolving Engineering A Cleaner, Reduce Water & Energy Integrity our portfolio of Healthier World Consumption Committed products in pursuit of highly Lower Harmful People Centric engineered, Emissions mission-critical Technology Driven Enable Clean
Slide 4: Modine At-a-Glance
Modine At-a-Glance $2.4B FY2024 Sales $314M FY2024 Adjusted EBITDA 38 Manufacturing Facilities in 14 Climate Countries1 Solutions Performance Americas: Technologies 16 Europe: 15 Asia: 7 Modine Headquarters ~11,400 Employees Performance Technologies Facility Climate Solutions Facility Positioned for
Slide 5: Business Segments and Product Groups
Business Segments and Product Groups PERFORMANCE TECHNOLOGIES CLIMATE SOLUTIONS Air-Cooled Liquid-Cooled Advanced Heat Transfer Data HVAC&R Applications Applications Solutions Products Centers Air-cooled heat Liquid-cooled heat Thermal systems and Heat exchangers for a Heating, ventilation, air Soft
Slide 6: Performance Technologies
Performance Technologies Performance Technologies provides engineered products and solutions that enhance fuel economy, minimize harmful emissions and increase reliability in harsh environments Performance Technologies’ Product Groups Sales & Adjusted FY2024 Sales EBITDA Margin Air-Cooled Liquid-Coo
Slide 7: Climate Solutions
Climate Solutions Climate Solutions provides energy-efficient, safe, climate-controlled solutions, and components for a wide range of critical applications Climate Solutions’ Product Groups Sales & Adjusted FY2024 Sales EBITDA Margin Air-Cooled Heat Transfer Liquid-Cooled HVAC&R Advanced Data Applic
Slide 8: Modine Revenue Breakdown FY2024
Modine Revenue Breakdown FY2024 Segment and Product Group Revenue Revenue by Geography Revenue by End Market Asia 9% Advanced Other Heating Solutions 4% 6% 5% HVAC&R Indoor Air Coolers 14% Light Vehicle 5% Quality Liquid-Cooled EMEA 15% 3% Applications 21% 35% Specialty Data Centers Vehicle 12% Syst
Slide 9: Strategic Pillars Driving Value Creation
Strategic Pillars Driving Value Creation Capitalizing on our deep expertise in thermal management to deliver differentiated solutions and sustained market leadership Leveraging our portfolio of highly engineered, mission-critical thermal solutions to accelerate growth Entering a multi-year growth cy
Slide 10: Secular Mega-Trends Driving Long-Term Growth
Secular Mega-Trends Driving Long-Term Growth High-Performance Computing Rapid expansion of AI fueling explosive data center growth, with commensurate need for cooling solutions Global Emission Standard Regulations Provide thermal components and systems to shift to low-carbon energy solutions driving
Slide 11: 80/20 – The Foundation of our Transformation
Elevating Our 80/20 Discipline – From Strategy to Operations Decentralized Customer Centric Entrepreneurial Capital Segmented Innovation Spirit Allocation Businesses Ongoing product Fostering an Shifting business mix Segmented portfolio innovation to provide a entrepreneurial spirit to higher-growth
Slide 12: Financial Profile: 80/20 Drives Long-Term Improvement
80/20 Drives Long-Term Improvement and Compounding Up & Simplify Clean Clean Up & Simplify Simplification Segmentation • Business portfolio will continually evolve over High Margin & High Growth 80/20 Strategy time, while transforming Fo cu se d G Simplification Segmentation Efficiency Value Clean U
Slide 13: Leveraging Core Competency of Thermal Management Across High-Growth End Markets
Leveraging Core Competency of Thermal Management Across High-Growth End Markets Strategic framework drives success in all market environments… …and delivers multi-year 80 growth powered by strong 20 secular Mega-Trends ✓ Energy Transition ✓ High-Performance Computing Deep Thermal Mission-Critical 80
Slide 14: Financial Trends
Financial Trends (In millions) Revenue $450 Adjusted EBITDA and Adjusted EBITDA Margin 16.0% $2,670 • Exceeded previous $2,298 $2,408 $350 $314 14.0%financial targets and $2,050 13.1% nearly doubled adjusted $1,808 $250 $212 Adjusted EBITDA 12.0% EBITDA since FY2022 Sales Outlook: $165 $159 Outlook:
Slide 15: New FY27 Financial Targets
New FY27 Financial Targets 10% – 13% 16% – 18%* FY24 – FY27 Adjusted EBITDA Revenue CAGR Margin Accelerate targeted growth through strategic resource and capital allocation Complete exit of non-strategic businesses Pursue new market opportunities Continue mix shift with product line management power
Slide 16: Acquisition & Divestiture Targets
Acquisition & Divestiture Targets¹ Acquired Revenue: $200M-$400M Fiscal 2027 financial targets do not include incremental acquisitions Margin & Earnings: Year one accretive Maximum Leverage Flexible debt covenants support post-acquisition Business Exits/Divestitures: ̴ $300M leverage of 3.00-3.25x,
Slide 17: Compelling Long-Term Investment Opportunity
Compelling Long-Term Investment Opportunity 80 20 Capitalizing on our Leveraging our portfolio Entering a multi-year Elevating our 80/20 Evolving our portfolio deep expertise in of highly engineered, growth cycle powered discipline by to compound thermal management mission-critical by multiple secul
Slide 18: Appendix
Appendix
Slide 19: Performance Technologies Re-segmentation Effective FY26
Performance Technologies Re-segmentation Effective FY26 AIR-COOLED PRODUCTS LIQUID-COOLED PRODUCTS ADVANCED SOLUTIONS PRODUCT GROUPS $702M FY24 Sales $492M FY24 Sales $127M FY24 Sales CURRENT • AC- Auto • LC- Auto • EV Systems • AC- Commercial Vehicle • LC- Commercial Vehicle • EV Auto • AC- Off-Hig
Slide 20: Climate Solutions Re-segmentation Effective FY26
Climate Solutions Re-segmentation Effective FY26 HEAT TRANSFER PRODUCTS HVAC&R DATA CENTERS PRODUCT GROUPS $473M FY24 Sales $341M FY24 Sales $294M FY24 Sales CURRENT • OE and Aftermarket Coils • Heating Products • Data Center Cooling Products • Anti-Corrosive Coatings • Refrigeration Coolers • Edge
Slide 21: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Adjusted EBITDA (In millions) Twelve months ended March 31, 2024 2023 2022 2021 Net earnings (loss) $ 163.4 $ 153.6 $ 86.3 $ (209.5) Interest expense 24.1 20.7 15.6 19.4 Provision (benefit) from income taxes 51.2 (28.3) 15.2 90.2 Depreciation and
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations (a) Restructuring expenses primarily consist of employee severance expenses related to targeted headcount reductions and plant consolidation activities and equipment transfer costs. (b) The net impairment reversal during fiscal 2022 primarily relates to the Company's liquid-
Slide 23: Non-GAAP Reconciliations
Non-GAAP Reconciliations Modine Manufacturing Company Segment adjusted financial results (unaudited) (In millions) Twelve months ended March 31, 2024 Twelve months ended March 31, 2023 Climate Performance Corporate and Climate Performance Corporate and Solutions Technologies eliminations Total Solut
Slide 24: Non-GAAP Reconciliations
Non-GAAP Reconciliations Free cash flow (In millions) Twelve months ended March 31, 2024 2023 2022 2021 Net cash provided by operating activities $ 214.6 $ 107.5 $ 11.5 $ 149.8 Expenditures for property, plant and equipment (87.7) (50.7) (40.3) (32.7) Free cash flow $ 126.9 $ 56.8 $ (28.8) $ 117.1 N
Slide 25: Forward-Looking Non-GAAP Financial Measures
Forward-Looking Non-GAAP Financial Measures This presentation includes forward-looking projections of non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, and free cash flow. The projections are based on management’s expectations of future financial results. For example, t
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