Slides From Milacron Lender Presentation January 18, 2017 1
Forward-Looking Statements Forward Looking Statements These slides contain (and the accompanying oral discussion will contain) forward looking statements. All statements other than statements of historical fact or relating to present facts or current conditions are forward-looking statements. 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, increases in the Company s cost structure, the rate of economic development and growth in emerging markets, the Company s exposure to fluctuations in currencies, the Company s ability to successfully implement its strategic initiatives to increase cost savings and improve operating margins, the integration of acquisitions and other factors disclosed in the Company s periodic reports. Such risks and other factors that may impact management s beliefs and assumptions are more particularly described in the Company s Form 10-K filed with the Securities and Exchange Commission (the SEC ) on March 2, 2016 under the caption Risk Factors and other reports the Company may make available from time to time. Consequently such forward-looking statements should be regarded as the Company s current plans, estimates and beliefs. The forward looking statements in these slides are made only as of the date hereof. The Company undertakes no obligations to update any such forward-looking statements, except to the extent required by law. All of the Company s forward-looking statements should be considered in light of these factors, and you should not place undue reliance on such forward-looking statements. Non-GAAP Financial Measures These slides contain financial measures which have not been calculated in accordance with generally accepted accounting principles in the United States ( U.S. GAAP ), including Adjusted EBITDA. These non-gaap financial measures should be considered only as supplemental to, and not as an alternative to, financial measures prepared in accordance with U.S. GAAP. Please refer to the appendix of this presentation for a reconciliation of Adjusted EBITDA to the most directly comparable U.S. GAAP financial measure. We believe that the inclusion of Adjusted EBITDA is useful to provide useful information to investors about our operating performance. Our use of the term Adjusted EBITDA may vary from that of others in our industry. This presentation should be read in conjunction with Management s Discussion and Analysis of Financial Condition and Results of Operations and the Consolidated Financial Statements presented within our Form 10-K filed with the SEC on March 2, 2016. 2
Company Overview Business Overview Milacron is a global leader in the manufacture, distribution and service of highly engineered and customized systems used in the $27 billion plastic technology and processing industry Strong brands cultivated over 150 years of operations ~6 of revenue from consumable products, which are related to maintenance, aftermarket, the mold replacement cycle and fluids Maintain over 27,000 customer relationships across a diverse range of industries and have long-standing relationships with our customers Large installed base of over 40,000 machines and 140,000+ hot runner systems globally LTM 9/30/16A Revenue and Adj. EBITDA by Business Products & Brands LTM 9/30/16A Revenue by End Market and Geography Revenue by Business: Adj. EBITDA by Business (1) : By End Market: By Geography: APPT 5 Fluids 9% After Market 19% MDCS 32% Equipment Systems 39% Consumables 6 MDCS 53% Fluids 1 APPT 36% Industrial Others Components/Machinery 6% 7% Housewares 6% Job Shops/Custom Molders 1 Contruction 7% Electrical 22% Packaging 19% Europe 19% India China 9% RoW 3% Asia 22% 5 LTM 9/30/16A Revenue: $1,184 million LTM 9/30/16A Adj. EBITDA: $218 million LTM 9/30/16A Revenue: $1,184 million (1) Percentages before corporate expense and pro forma adjustments. 3
Advanced Plastic Processing Technologies Business Overview LTM 9/30/16A Revenue (1) ($689 million) APPT is a global leader in the manufacture, distribution, service and sale of equipment and products used in the plastic processing technologies industry, including injection molding, blow molding and extrusion applications Provides aftermarket service and support, including rebuilds, upgrades and spare parts for Milacron s core plastic equipment business and is expanding its capabilities in the high growth coinjection market 4% Electronics 6% Industrial Components/ Machinery By End Market: Other Housewares 7% Job Shops/ Custom Molders 13% Packaging 23% Construction 12% 14% Europe 1 3% India 12% China 2% Asia 17% By Geography: RoW 4% 6 Brands Financial Performance (1) 10 15 CAGR ($ in millions) Revenue: 9.9% $425 $542 $585 $580 $684 $681 $689 2010A 2011A 2012A 2013A 2014A 2015A LTM 9/30/16A (1) Includes impact of the Company s reclassification of some of its operations from Melt Delivery and Control Systems (MDCS) to Advanced Plastic Processing Technologies (APPT). Total Revenue remains the same. The reclassification took place starting in 2014. 4
Melt Delivery and Control Systems Business Overview LTM 9/30/16A Revenue (1) ($383 million) MDCS is a global leader in the manufacturing of a comprehensive line of plastic delivery and precision control systems for injection molding applications 100% consumables MDCS provides highly-engineered, technically advanced: Hot runner systems Process control systems Mold bases Mold components Maintenance, repair and operating supplies MDCS serves customers throughout the value chain Electronics 14% 17% By End Market: Housewares Other 3% 4% 1 Packaging 1 33% Europe 27% Asia 3 10% India 3% By Geography: RoW 36% China 23% Brands Financial Performance (1) 10 15 CAGR ($ in millions) Revenue: 5.3% $297 $367 $386 $381 $398 $384 $383 2010A 2011A 2012A 2013A 2014A 2015A LTM 9/30/16A Note: Amounts reflect combined results of Milacron and Mold-Masters for all periods presented. (1) Includes impact of the Company s reclassification of some of its operations from Melt Delivery and Control Systems (MDCS) to Advanced Plastic Processing Technologies (APPT). Total Revenue remains the same. The reclassification took place starting in 2014. 5
Fluid Technologies Business Overview LTM 9/30/16A Revenue ($112 million) Fluids is a leading manufacturer of premium coolants, lubricants, process cleaners and corrosion inhibitors that are used in a variety of metalworking industries 100% consumables; high margin, high returns business with strong cash flow Major global end markets include automotive, industrial components and machinery, aerospace, appliances and oil and primary metals Other 24% Job Shops & Custom Molders 2% Housewares Electronics 6% By End Market: Industrial Components & Machinery 26% 3 Europe 40% Asia 17% By Geography: RoW India 7% 42% China 9% Brands Financial Performance 10 15 CAGR ($ in millions) Revenue: 1.0% $110 $129 $132 $128 $129 $115 $112 2010A 2011A 2012A 2013A 2014A 2015A LTM 9/30/16A 6