2015 investor and analyst day - columbus mckinnon · 4 © 2015 columbus mckinnon corporation market...

© 2015 Columbus McKinnon Corporation. All Rights Reserved. Confidential and Proprietary.

2015 Investor and Analyst Day

140 Years Strong

July 7, 2015

2

© 2015 Columbus McKinnon Corporation

These slides contain (and the accompanying oral discussion will contain) “forward-looking

statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such

statements involve known and unknown risks, uncertainties and other factors that could cause

the actual results of the Company to differ materially from the results expressed or implied by

such statements, including general economic and business conditions, conditions affecting the

industries served by the Company and its subsidiaries, conditions affecting the Company’s

customers and suppliers, competitor responses to the Company’s products and services, the

overall market acceptance of such products and services, the integration of acquisitions and

other factors disclosed in the Company’s periodic reports filed with the Securities and Exchange

Commission. Consequently, such forward looking statements should be regarded as the

Company’s current plans, estimates and beliefs. The Company does not undertake and

specifically declines any obligation to publicly release the results of any revisions to these

forward-looking statements that may be made to reflect any future events or circumstances after

the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Safe Harbor Statement



140 Years Strong

July 7, 2015

Timothy T. Tevens President and Chief Executive Officer

4


Market Capitalization $501.7 million Annual Dividend $0.16

Recent Price $25.00 Dividend Yield 0.6%

52 Week High-Low $29.69 - $20.16 Institutional Ownership 93.3%

Shares Outstanding 20.1 million Insider Ownership 3.5%

Average Daily Volume (3 mos.)

48,918 Employee Count (approx.) 2,750

Book Value per Share $13.39 Fiscal Year End March 31

Market data as of 6/30/15 (Source: Bloomberg); shares outstanding as of 5/26/15; book value per share, employee count and institutional ownership as of

3/31/15; insider ownership as of most recent filing

Founded: 1875 IPO: 1996 NASDAQ: CMCO

Columbus McKinnon Corporation

LIFT SECURE

Easily and Safely

5


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Superior Customer Satisfaction

Helping our customers succeed

Innovation, quality, safety and continuous improvement in all aspects of performance

Our people and our diverse backgrounds

Our

Goal

Our

Initiatives

Our

Values

Our

Mission

“To be the global leader in helping customers lift,

position and secure materials easily and safely.”

A healthy company with the highest integrity which values all stakeholders

140 Years Strong

6


Customer Intimacy

Know the customer

Operational Excellence

Customer Intimacy

Strong global brands

Broad product offering

7


Superior Customer Satisfaction

Geographic Market

Expansion

Acquisitions and Strategic Alliances

Global Product Development and Key Vertical Markets


Grow

Profitably

Strategic Imperatives

8


Leverage Existing Footprint

APAC Latin America EMEA

From strength in

China

From strength in

Mexico and Brazil

From strength in

Europe and S. Africa

9


Invest in Product Development

Voice of Customer

New Technologies

Revised Product

Development Process

Market-driven New Products

- Tied to customer intimacy

- Increased cadence

of new products

10


Achieve World Class Performance

Customer

People Operations

Continuous Improvement

11



Objectives FY14 Actual FY15 Actual World Class

Customer Satisfaction - Total 5.1 3.5 2.5

Internal Defect Rate 1.02% 0.85% 0.75%

Inventory Turns 4.26 4.3 6.0

On-time Deliveries 88.0% 90.2% 98.0%

Warranty Costs 0.34% 0.33% 0.35% - 0.30%

Productivity 11.2% 31% +10% - +15%

Safety RW/LT 1.88 1.52 0.50

Continuous Improvement

12


Positive Culture

Safety focus

Productivity

Great Place to Work

People Development

Succession planning

Training and development programs

• Global and regional leadership development

• Career path planning

Develop Our Culture and People

Americas

EMEA

APAC

13


Americas

APAC EMEA

Global Support

Product Development and Vertical

Markets

Acquisitions

Business Systems

Global Sourcing

CM Lean Business System

14


70

75

80

85

90

95

100

FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

% On-Time Deliveries

3

4

5

6

7

8

9

10

11

12

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Customer Complaints/1000 Lines

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Internal Defect Rate

Many Strategic Accomplishments

Global vertical market roll-out

Completed value added acquisitions

• STB, Unified Industries

I. Profitable Revenue Growth

II. Global Organization

III. Operational Excellence

Enhanced China operations capability

• Completed Hangzhou expansion

• Allows for product localization

Continued positive operational performance

New product development leadership

SAP installation 26% complete

15


Key Takeaways

Ability to drive growth independent of the business cycle

Global reach of our markets

Extensive breadth of our products and services

Future expectations:

Growth, margin expansion and cash generation


Global Product Development

Jeffrey S. Armfield

Executive Director,

Global Product Strategy and Development

17


3

Productivity, Safety & Quality Wins

Technical

Performance

Serviceability

Global

Compliance

Ergonomics

Automation

Readiness

Lighter, Smaller

Products

18


3

Disciplined Approach

Market

Needs

Market

Feedback

Product

Planning

Product

Development

Cross-Functional, Measurable, Repeatable

Revenue

and

Profit

Product

Launch

19


3

Emphasis on People and Process

Market

Needs

Market

Feedback

Product

Planning

Product

Development

Strategic Product

Management

Voice of Customer and

Watch the Work

Knowledge Based

Engineering Metrics

Market Performance

Metrics

Speed to Market

20


Successful Launch: 2-Ton Single Reeve Lodestar

Smaller hoist

Faster lift speed

Onsite observation

Extensive testing

Feb. 2015 launch

well received

Market Needs

Market

Feedback

Product

Planning

Product

Development

21


Improvements Address Market Needs

Higher speed

Quieter and lower power consumption

Improved safety; unique clutch positioning

Improved serviceability; easier access to

components

Longer life

Enhanced gear box and technology

Heavy duty motors

Lifetime warranty

Targets Industrial & Entertainment Markets

22


Successful Launch: Universal Trolley System

Universal adaptability

Range of motion

options

Consolidate

multiple systems

Extensive testing

May 2015 launch

Market Needs

Market

Feedback

Product

Planning

Product

Development

23


Innovations Address Market Needs

Universal design fits most hoists & beams

Modular design

Manual, geared, powered

One to three tons

Various height applications

Improves minimum radius curve

Various wheel diameters

Lower cost / higher performance

Long service life

Low maintenance; permanently lubricated

ball bearings

Targets Industrial Markets

24


Future focus areas: Explosion proof, variable speed, automation, remote access

Leveraging deep application/engineering knowledge

Targeting geographies

Ethnography: Watch the work

24

What’s Ahead


Create Demand:

End User Focused

Gene P. Buer

Vice President,

Global Services and Vertical Markets

26


Create Demand

Vertical Markets

Deep industry and customer knowledge

Create end-user pull – build demand for products and systems

Channel utilization – connecting high value-add channel partners to users

Developing application-specific products and systems

Global Services

Turnkey systems and asset management services

Premium customers

Total Cost of Ownership (TCO)

Leveraging entire portfolio to deliver best-in-class solutions

Customer Intimacy Critical to Strategy

27


Broad and Diverse Vertical Markets

28


$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Global Target Market Opportunity(1)

Addressable market with current portfolio: ~$2.0 billion

Potential opportunity with product line expansion: +~$1.8 billion

Combined sales represent ~9% of the total global market 1 Company estimates 2 Represents percent of current addressable market

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Total Target Market

($ in millions)

Current Addressable Market (CAM) Potential Target Market with New Products Columbus McKinnon FY 2015 Sales

38% 5% 11% 15% 12% 21% 19% 10% 9%

Estimated market share of CAM(1,2):

29


Vertical Market Strategy

Develop

Implement

Intelligence

Leverage relationships

Gather Voice of Customer (VOC), watch the work

Assess the competition

Scale

Customer specific solutions

Deepen customer relationships

Deliver solutions

Train and educate users

Approach similar customers

Modify to suit

Deepen vertical market knowledge

Customer Intimacy Model

30


Key Verticals:

Entertainment

Oil & Gas

Construction

Automotive

Heavy OEM

Regional Focus on Targeted Verticals

Americas APAC EMEA

Key Verticals:

Entertainment

Oil & Gas

Construction

Mining

Key Verticals:

Entertainment

Oil & Gas

Automotive

Heavy OEM

Power

31


Global Services Turnkey Solutions

Comprehensive project management

Engineering services

Installation and commissioning

Complete documentation

Operator and maintenance training

Optimizing Facility Uptime

Objective: Highest Uptime and Lowest TCO

32


Global Services Case Study

Global Heavy Equipment OEM

Product: Axle assemblies for

wheel loaders

Systems to optimize design and layout

Unified aluminum rail workstations

CM Lodestar chain hoists

On-site project management

Lifetime service program

Results: Reduced installation time, lowered rolling

resistance, higher duty cycle and longer life cycle

33


Global Services Asset Management

Baseline audits

Equipment repairs and upgrades

Preventative maintenance and fleet standardization

Operator training

Asset management software

Lowest Life-cycle Cost

Objective: Highest Uptime and Lowest TCO

34


Focus on Automotive and

Heavy Equipment OEMs

Frequent lifts

Heavy / critical lifts

Targeting Fortune 100

companies

Leveraging successes to

broaden and deepen market

penetration

Where Do We Go From Here?


Acquisitions:

Expanding Market Opportunity

Alan S. Korman

Vice President

General Counsel and Corporate Development

36


Drive Growth and Add Value

Deepen reach into key vertical markets

Increase presence in geographic markets

Access to new technologies/expand product portfolio

Add $200-300 million revenue

37


Energized Approach

Regional business leaders engaged

Identify key criteria unique to regions

Help identify candidates

Increasing targets in the funnel

Broaden the target pool into adjacencies

Driving evaluation and decision-making process

Ability to respond rapidly to opportunities

38


Strategically Driven Acquisitions

Strategic Objectives

Expand addressable market

Deepen market penetration

Leverage channel strength

Screening Criteria

Size: $50 - $200 million revenue; willing and able to go larger

Profitability: Margins > corporate average with synergies

Unique competitive advantages: IP

Price Discipline

ROIC > WACC

Generally accretive within one year

EBITDA multiples vary given synergies

Value

Creation

39


Approach in Action

• Candidate search

• Filter through criteria Identify

• Analyze targets against criteria

• Review market and industry info

• Determine next steps

Evaluate

• Key stakeholders

• Formulate message

• Designate contact team

Approach

40


Unified Industries - February 2014

Leading light rail designer and manufacturer

Efficient work station lifting systems

Focused on selling to “Big 3” automotive

Facility in Howell, MI

Broader offering for general industry

New solutions into APAC, India

Value Creation: sell through all regions,

manufacture locally (China and Germany)

2013 revenue: $12.4 million

41


Stahlhammer Bommern (STB) – Dec. 2014

STB Large Capacity

Ramshorn Hook

Leading European manufacturer of heavy-

load hooks, rigging tools and engineered

components

Expanded lifting hook capacity to 2,000 tons

Increased eye, shank and ramshorn lifting

hook offerings

Primarily serves Europe

Value Creation – rigging product extension

into Americas

2014 revenue: €14.5 million

42


Energized Process

Diverse mix of candidates

Public and private ownership

Domestic and international companies

Developed and emerging markets

Hoists, rigging tools, winches, workstations, motion control

Near-term actionable opportunities

Strong Pipeline of Candidates


Americas:

Leverage Market Position to Grow

Kurt Wozniak

Vice President, Americas

44


140-Year History

69%

31%

Americas Rest of World

FY 2015 Total Sales $579.6 million

History:

1875 Company founded as Moore Manufacturing Company

1899 Name changed to Chisholm and Moore Manufacturing

Company

1917 Columbus Chain merged with McKinnon Chain, forming

Columbus McKinnon Chain

1928 Acquired Chisholm Moore (CM brand)

1929 Incorporated Columbus McKinnon Corporation

1976 Acquired Midland Forge

1979 Acquired Dixie Industries

1995 Shaw-Box, Chester Hoist and Budgit brands added with

Lift-Tech acquisition

1996 Duff-Norton, Coffing Hoists, Little Mule and Yale brands added

with Yale Industrial Products acquisition

2009 Divested American Lifts business

2012 Divested Gaffey division of CES

2014 Acquired Unified Industries

45


Americas Strategy for Growth

Strategy:

Broaden product offerings

Build customer and industry knowledge

Leverage CM Lean Business System

Objectives:

Grow market share

Increase penetration into target verticals

Improve productivity and drive

continuous improvement

46


FY2011 FY2012 FY2013 FY2014 FY2015

17% 17% 16% 17% 16%

83% 83% 84% 83% 84%

Moderate Economic Recovery

Americas Sales Divested ~$20 million in

revenue from crane business

in FY2013

Acquired Unified in Feb 2014;

had $12 million in revenue

in 2013

Moderate economic recovery

in U.S.

Challenged in Brazil by political

environment and recession

$398 $400

$357

$401 $408

US Other

47


Leading Market Share

Largest installed base of

hoists in North America

72% of net U.S. sales are

products where CMCO

has the #1 position

Built leadership in

Canada, Mexico, Brazil

48


Customer Intimacy Critical for Success

Greater intimacy with customers and end users

Well-established brands

Broad product portfolio and semi-customization

Operational excellence

Memorable customer experiences

Columbus McKinnon University

In-depth product training to channel partners / end users

In-Stock Guarantee

Rapid response

Improved on-time delivery

~ 280 SKUs

49


Growth Opportunity in LATAM

Entered Mexico

1975: Acquired 50% interest in Endor

1995: Purchased remaining 50%

Expanded sales footprint:

Assembly and distribution centers

Panama, Brazil, Uruguay

2014: Recife, Brazil

Localized products add value

50


Major Manufacturing Base

10 out of 18 global manufacturing facilities

in North America

51


Rationalized North America Footprint

Reduced manufacturing square footage

• 2008: 1.6 million square feet

• 2015: 1.0 million square feet

Reduced principal manufacturing facilities

• 2008: 14

• 2015: 10

Operational excellence

• Component shipments to assembly warehouses

• Kata methodology


52


Vertical market strategy

Deepen customer knowledge

Increase application expertise

Train users in safe and productive lifting

Customer intimacy

Direct interaction

CMCO University

Enhanced customer experience

Duplicate Global Services successes

Drive Demand Independent of Economic Cycles


Europe, Middle East & Africa:

Deepening Market Presence

Dr. Ivo Celi

Vice President, EMEA

54


Gained Market Presence

54

($ in millions)

28%

72%

EMEA Rest of World

FY 2015 Total Sales $579.6 million History:

1904 Yale established first sales offices in Europe

1996 Acquired Yale Europe

1999 Acquired Camlok Lifting Clamps, UK

2000-2007 Expanded sales network: The Netherlands, Spain,

Hungary, Italy. Added train maintenance and

engineering products in South Africa

2008 Acquired Pfaff: Eengineering solutions

2010-2012 Founded subsidiaries in Russia, Middle East, Turkey

2012 Acquired Yale Lifting Solutions in South Africa

2013 Acquired Hebetechnik, Austria

2014 Acquired Stahlhammer Bommern

55


EMEA Strategy for Growth

Strategy:

Deepen customer intimacy in

vertical markets

Expand regional reach

Leverage rigging products, market

channels, services and solutions

Objective:

Grow market share

Leverage market disruption to

take share

56


Deepening Presence in a Challenging Environment

Challenged by two recessions…

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

€118 €127 €129

€123 €128

EMEA Sales (€ in millions)

…but better times appear to be on the horizon

57


Manual hoist leader

• Tripled addressable market with additional products

• Electric chain hoist, explosion proof products, rigging tools

Local presence

• Establishing sales and services in local markets

Addressing key vertical markets

• Expanding reach into industrial, oil & gas and construction in Turkey, Middle East

• South African mining strike behind us – growing again

Linking EMEA

• SAP installed in most countries

• Centralized services

Customer Intimacy

58


Driving Growth

Geographic presence

• Growing in Austria, Hungary, Italy, Poland

• Growing in Russia despite upheaval

Product expansion

• Explosion proof hoists

• Unified product: light rail systems

• STB high-capacity hooks

Acquisitions

• Hebetechnik: Direct sales skills and unique on-site service capabilities

• STB: New and expanded product offerings

• Yale Mining: Deeper penetration in mining vertical

59


Expanding Channels to Market

60


Hoist Business

Shortened lead times

Reduced costs in logistical processes

Increased capacity 30% utilizing same headcount

Increased productivity 10% year to date

Motion Control: Underway

Consolidating operations

Reducing headcount, square footage,

administrative redundancies

Maintaining capacity

Improving margins


61


Rail Technology

Precision motion-controlled lifting system

Supports manufacturing, inspection,

maintenance and repairs for diesel and

high speed rail

Includes mobile lifting jacks, lifting

platforms, complete under-floor lifting

systems

Specialty Application Success

62


Long history of solving material handling problems

Profitable products targeting vertical markets

Acquire additional profitable businesses

Develop new and improved products

Expand sales presence

Further develop channels to market

Focus on developing regions

Growing Excellent Presence


Asia Pacific:

Expand Beyond China

Benjamin AuYeung

Managing Director, APAC

64


Solid Foundation for Market Leadership

History:

1992 Established low cost manufacturing

operations for Americas

2010 Initiated 10-year plan to sell into China:

From importing to localized

Manual to powered hoists

Build out sales network and

partnerships

2014 Completed facility expansion

Localizing powered products

Expanded partnerships

3%

97%

APAC Rest of World

FY 2015 Total Sales $579.6 million

65


Growth Opportunity: Asia Pacific

Strategy

Localized products

Cost competitive

Leverage strong brand

Premium markets value quality

and Total Cost of Ownership

Objective:

Accelerate growth rate to capture

$100 million revenue opportunity

66


Gaining Traction

FY2011 FY2012 FY2013 FY2014 FY2015

$7.4 $8.1 $10.9 $11.4

$14.6

($ in millions)

APAC Sales

Sales by APAC into APAC:

36% 5-year CAGR in China

18% 5-year CAGR in

rest of Asia

Strong trend continued in

Q4 FY15: Sales up 23%

Focus on growing in

key vertical markets

* Excludes $6.5 million rail project and road project sold into Taiwan from EMEA

$11

$17 $17*

$19 $19

Sales by APAC into APAC

67


Beijing

Guangzhou

Hangzhou

Shenyang

Wuhan

Shanghai

Chengdu

Xi An

Solid Market Coverage

China: 8 offices, 26 engineers/sales reps/sales support personnel

Offices located in main industrial hubs in China

Sales teams are located in offices across China:

Provide regional coverage

Improve customer intimacy

68


Deeper Reach Through Partners

FY2011

FY2012

FY2013

FY2014

FY2015

10 21 26

35 30

30

37 43

47

Signed Potential

Two-step approach:

Establish and test

Formalize agreement

69


Wide Range of Partners in China

Crane builders System integrators

(value-added resellers)

Specialist traders (industry-specific)

EPCs

General traders (manual hoists)

Our

Focus

70


Growing Beyond China

ABC approach

Application-based

customer solutions

Broaden Asian-ized

products

Coverage and distribution

development

Identify and reach out to

acquisition targets

Hoist / component / system

Korea/Japan/India/China

71


India Thailand

Singapore

Korea

Japan

Expanding Southern Footprint

Leverage experience building

China model for developing

emerging markets

India

Indonesia

ASEAN Trio (Thailand,

Malaysia and Singapore hub)

Established 3 offices with

9 sales personnel and

1 support staff

Move faster in talent

development

72


Expand Partnerships Rest of Asia

Partners Singapore 3

Thailand 4

Indonesia 5

Malaysia 3

India 5

Philippines 2

Australia 3

Japan 5

South Korea 4

Total 34

Use two-step partner approach

Curr

ent

Focus

Over 30

additional

potential

partners

73


Collaboration

Managing Projects

Building relationships with major players

Establishing references and reputation

In discussions to build multi-plant solutions

Large Automotive Opportunity

74


China, Japan, U.S. and Europe

Success with Automotive OEMs

75


Leveraging global reputation

Relationships

Products

Global Services

Hire additional in-country sales

and application engineers

Significant Heavy Equipment OEM Presence

Collaboration

Managing Projects

76


Success with Global and Local OEMs

Facility upgrade projects and new builds

77


Accelerate Growth Rate

Vertical market strategy clearly works

Engineering capability is critical to success

Next steps:

Accelerate development of engineering competency

Deploy in-country sales engineers and service technicians

Retain more application engineers (China/Singapore/India)

Create wire rope hoist solution for mass market in China

Entry into China market challenging…

…but gained invaluable know-how to drive higher growth


Driving Value:

Achieving Financial Goals

Gregory P. Rustowicz

Chief Financial Officer

79


FY 2011 FY 2012 FY 2013 FY 2014 FY 2015

$524.1

$591.9 $597.3 $583.3 $579.6

5.3%

7.6%

9.1% 9.6% 9.8%

25.4% 26.6%

29.2% 31.0% 31.6%

Expanded Margins in Challenging Environment

Operating Margin(1)

($ in millions)

Gross Margin(1)

(1) Gross margin for FY11 and FY15 and operating margin for FY11, FY14 and FY15 as shown are adjusted to exclude unusual items and are Non-GAAP financial

measures. Please see supplemental slides for a reconciliation from GAAP financial measures to the Non-GAAP financial measures provided above

Net Sales

80


Target: 12% to 14% operating margin goal

At historic peak sales of ~$630 million (FY 2009 normalized)

While making strategic growth investments

Achieved average operating leverage of 53% since FY 2011

Expecting operating leverage of 30% to 40%

Margin Goal Achievable

Incremental revenue + $50 million

Operating leverage @ 40%

Incremental operating income = $20 million

FY2015 adjusted operating income + $57 million

Total operating income = $77 million

Operating margin: 12.2% $77 million/$630 million

81


FY2002 FY2015 ∆

Sales $480 million $579.6 million + 21%

Major Manufacturing Facilities 20 14 - 30%

Manufacturing--Square Feet 2,691,200 1,608,000 - 40%

Number of FTE 2,716 2,747 + 1%

Four-year Productivity Gains: $12.8 million

Lean Activities: Continuous process globally

ERP System: 26% complete on March 31, 2015

Driving ease of commerce

Localizing Products in China: Expanded capacity in China by ~40%

Transferred Western-designed products

Reduced product costs

Efficient Operations

82



Lean methodology applied throughout operations

Company-wide culture

Never-ending process: Consistently about 100 ongoing projects

Continuously improving and applying experience gained

Six key initiatives

Associate involvement and development Operational effectiveness

Supply chain material flow Workplace safety and organization

Quality management system Continuous flow

83


Duff Norton, CMEP, CMIP,

UK, Misc. EU

France and Brazil

US H&R

Global Master Data Governance & Clean Up

FY 2015 FY 2016 FY 2017 FY 2018

26% Global

Revenue 30% Global

Revenue 78% Global

Revenue

Implementations:

Remaining Material Locations To Be Determined:

Hangzhou, Canada, Mexico, CES, Austria, Hungary, Sarasota, Unified, South Africa

Business Driven

Implementation

Plan

Global ERP Implementation Plan

84


Benefits of Global Collaboration

Ease of Commerce

Better Data and Faster Decisions

Working Capital

Improvement

Improved Global

Operational Efficiencies

Global ERP

85


FY09 FY10 FY11 FY12 FY13 FY14 FY15

$48.0

$22.6

$(9.3)

$9.8

$27.5

$8.7

$21.0

(1) Operating free cash flow is defined as cash provided by operating activities minus capital expenditures

(2) Fiscal 2010 and fiscal 2011 include $10.8 million and $4.5 million of cash payments related to restructuring charges, respectively

Note: Operating free cash flow is a non-GAAP measure. See supplemental slides for operating free cash flow reconciliation and other important disclaimers regarding operating free cash flow

Note: Cumulative operating free cash flow uses FY 2009 as a starting point

Note: Figures for individual years may not add up to cumulative totals due to rounding

($ in millions)

Operating Free Cash Flow (1)

(2) (2)

Strong Cash Generation

Cumulative Operating Free

Cash Flow (1)

FY09 FY10 FY11 FY12 FY13 FY14 FY15

$48.0

$70.6 $61.3

$71.1

$98.6 $107.3

$128.3

86


FY11 FY12 FY13 FY14 FY15

16.9% 17.6% 18.3%

21.7% 20.8%


49.1 50.6 50.5 52.9

49.2

Working Capital as a Percent of Sales

Receivable Days Outstanding

(1) FY15 working capital as a percent of sales excludes STB acquisition which was acquired on December 30, 2014

(1)

Emphasis on Working Capital

Days Payable Outstanding


31.8 32.3 31.1

29.2 29.4

Inventory Turns


4.7x 4.3x 4.3x 4.5x

4.0x

87


FY11 FY12 FY13 FY14 FY15 FY16E

$12.5 $13.8 $14.9

$20.8

$17.2

Low CapEx Requirements


114% 116% 123%

156%

118%

Normal capital spend ~$10-$12 million

Extraordinary investments in productivity and capacity

Invested $19 million in SAP since FY2011

Invested $6.4 million for China plant expansion

FY16 estimate includes $5.5 million for NA sales and training operations/

Corporate headquarters

(1) $18-$22

CapEx / D & A CapEx

(1) Guidance provided on May 28, 2015

88



4.8%

10.9%

13.9% 12.8% 11.2%

0.5x

1.0x

1.2x 1.3x 1.1x


ROIC/WACC

(1) ROIC is defined as income from operations, net of 30% tax rate, for the

trailing 12 months divided by the average of debt plus equity less cash

(average capital) for the trailing 13 months.

(2) Average capital within the ROIC calculation for FY 2011 through FY

2013 removes the effect of the deferred tax asset valuation allowance,

which was reversed in FY 2013.

(3) Source: Bloomberg

(2) (2) (2)

Return on Invested Capital (ROIC)(1)


10.0% 11.4% 11.1% 9.9% 10.1%

WACC(3)

Creating Shareholder Value

89


Redeemed $150 million 7 7/8% Senior Subordinated Notes

in February 2015

Secured new $125 million delayed-draw term loan and new

$150 million revolving credit facility

New term loan plus cash on hand financed redemption of Notes

Cash interest expense savings of ~$7.6 million

Contributes ~$0.27 per diluted share(1) in FY2016

More flexible capital structure

Pre-payable debt

(1) Applies a 30% tax rate and reflects the Company’s policy of a fixed interest ratio of 50% to 70%

Recent Capital Structure Improvements

90



$154.4 $153.1 $152.1 $152.3

$126.7

$13.5 $14.2

$13.8 $13.5

$12.4

Strong Balance Sheet ($ in millions)

Cash and Cash Equivalents Total Debt

Interest Expense


$80.1 $89.5

$121.7 $112.3

$63.1


$162.1 $160.5

$240.0

$291.3 $268.7


48.8% 48.8%

38.8% 34.3% 32.0%

Shareholders Equity Debt/Total Capitalization

(1) Reflects impact of foreign currency translation adjustment ($29.9 million) and change in pension liability and OPEB net of tax ($20.2 million)

(1)


140 Years Strong

Timothy T. Tevens

President and Chief Executive Officer

92


Strong Balance Sheet

and Financial Flexibility

to Execute Plans

1/3 of sales in developing markets

and 2/3 in developed markets

Organic growth (trend line):

- U.S. & Western Europe at GDP+

- Emerging Markets at double digits

Acquisitions: $200 - $300 million

Continued introduction of new

products: 20% of sales

$1B in Revenue

Operating margin: 12% - 14%

Working capital/sales: 17%

Inventory turns: 6x

DSO: < 50 days

Profitable & Efficient

Long-Term Objectives



140 Years Strong

July 7, 2015


Supplemental Slides

95


Year Ended

March 31,

2011 2012 2013 2014 2015

Gross Profit $ 126,052 $ 157,718 $ 174,231 $ 181,048 $ 181,607

Add back:

Restructuring-related costs 3,900 - - - -

Unusual product liability claims 2,900

European facility consolidation costs - - - - 1,176

Acquisition inventory step-up expense and real

estate transfer taxes - - - - 543

Non-GAAP adjusted gross profit $ 132,852 $ 157,718 $ 174,231 $ 181,048 $ 183,326

Sales $ 524,065 $ 591,945 $ 597,263 $ 583,290 $ 579,643

Adjusted gross margin 25.4% 26.6% 29.2% 31.0% 31.6%

Adjusted gross profit is defined as gross profit as reported, adjusted for unusual items. Adjusted gross profit is not a measure determined in accordance with generally accepted

accounting principles in the United States, commonly known as GAAP, and may not be comparable to the measure as used by other companies. Nevertheless, Columbus McKinnon

believes that providing non-GAAP information such as adjusted gross profit is important for investors and other readers of the Company’s financial statements, and assists in

understanding the comparison of the current quarter’s gross profit to the historical period’s gross profit.

Adjusted Gross Margin Reconciliation

96


Year Ended

March 31,

2011 2012 2013 2014 2015

Operating income $ 18,572 $ 45,144 $ 54,371 $ 54,350 $ 54,648

Add back:

Restructuring-related costs 6,200 - - - -

Unusual product liability claims 2,900 - - - -

Atypical merger and acquisition expense - - - 1,657 -

European facility consolidation costs - - - - 1,726

Acquisition inventory step-up expense and real

estate transfer taxes - - - - 659

Non-GAAP adjusted operating income $ 27,672 $ 45,144 $ 54,371 $ 56,007 $ 57,033

Sales $ 524,065 $ 591,945 $ 597,263 $ 583,290 $ 579,643

Adjusted operating margin 5.3% 7.6% 9.1% 9.6% 9.8%

Adjusted operating income is defined as operating income as reported, adjusted for unusual items. Adjusted operating income is not a measure determined in accordance with

generally accepted accounting principles in the United States, commonly known as GAAP, and may not be comparable to the measure as used by other companies. Nevertheless,

Columbus McKinnon believes that providing non-GAAP information such as adjusted operating income is important for investors and other readers of the Company’s financial

statements, and assists in understanding the comparison of the current quarter’s operating income to the historical period’s operating income.

Adjusted Operating Margin Reconciliation

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