Fiscal 2012 Fourth Quarter Earnings September 27, 2012 Safe Harbor - PowerPoint PPT Presentation

Fiscal 2012 Fourth Quarter Earnings September 27, 2012

Safe Harbor Statements in this presentation that are not historical are considered “forward-looking statements” and are subject to change based on various factors and uncertainties that may cause actual results to differ significantly from expectations. Those factors are contained in Actuant’s Securities and Exchange Commission filings. All estimates of future performance are as of September 27, 2012. In this presentation certain non-GAAP financial measures may be used. Please see the supplemental financial schedules at the end of this presentation, accompanying the Q4 Fiscal 2012 earnings press release, or refer to the Investors section of Actuant’s website (www.actuant.com) for a reconciliation to the appropriate GAAP measure. 2

Fourth Quarter Highlights • Delivered EPS of $0.55, a year-over-year increase of 10% (excluding impairment charge) • Core sales growth of 3%, with solid core growth in three of four segments • Year-over-year operating profit margin expansion of 20 basis points (excluding impairment charge) • Outstanding free cash flow of $56 million • Completed CrossControl acquisition, second tuck- in to Maxima platform • Repurchased 0.9 million shares for approximately $24 million • Non-cash asset impairment charge of $63 million related to Mastervolt 3

Fourth Quarter Operating Results (US$ in millions except EPS) F' 2011 F' 2012 Change Sales $403 $405 0% Operating Profit (1) $57 $58 2% 14.1% 14.3% 20 bps EPS (1) $0.50 $0.55 10% Operating Results At High End of Expectations (1) From continuing operations, excluding impairment charge. 4

Core Sales Growth Year-over-Year Sales (US$ in millions) Core Sales Rate of Change $450 20% $400 15% 14% 14% $350 13% 10% 10% 8% 7% $300 4% 5% 3% $250 $200 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Moderating Core Growth Against Double Digit Prior Year Comparables 5

Operating Profit Margin Improvement Trend (basis points) 300 250 230 190 200 150 140 150 120 100 90 100 50 20 0 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Moderating Year-Over-Year Margin Improvement – Maintaining Future Growth Investments Operating profit margin excluding impairment charge in Q4, 2012. 6

Industrial Segment • Strong US activity levels drove core Financial Snapshot sales growth (US$ in millions) 4th Quarter • Vertical market strategies and new y-o-y products more than offset 2012 2011 change weakness in Europe/China Sales $111 $109 2% Op Income $29.5 $28.6 3% • Integrated Solutions activity remains solid in all regions Op Margin 26.6% 26.2% 40 bps • Year-over-year operating margins expanded reflecting higher volumes Sales Trend Core Sales Change Sales $120 30% 23% 22% $100 20% 19% 15% $80 13% 11% 10% 7% $60 5% $40 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 7

Energy Segment Financial Snapshot • Strong activity levels in both maintenance and capital project (US$ in millions) channels 4th Quarter y-o-y 2012 2011 • Growth seen across broad array change Sales $93 $83 13% of served end markets including Op Income $18.8 $17.2 10% LNG, nuclear maintenance, offshore, refineries, etc. Op Margin 20.2% 20.7% (50) bps • Modest margin decline due to unfavorable mix; but at highest level in fiscal year Sales Trend Core Sales Change Sales $100 30% 28% 27% $90 23% $80 22% 20% $70 14% $60 12% 10% $50 5% $40 4% $30 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 8

Electrical Segment • Maintained solid core sales growth Financial Snapshot rate due to higher solar, retail, (US$ in millions) industrial and marine aftermarket 4th Quarter 1 demand y-o-y 2012 2011 change Sales $83 $80 3% • Marine OEM and utility softness in Op Income $8.3 $6.5 28% the quarter Op Margin 10.0% 8.1% 190 bps • Margin improvement on higher Excludes Q4 2012 non-cash asset impairment charge of $62.5 million volume • Finalized transformer restructuring Sales Trend Sales Core Sales Change move to low cost country $90 15% manufacturing 14% $80 10% 10% $70 7% 7% $60 5% 3% 2% $50 0% 0% -2% $40 $30 -5% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 9

Engineered Solutions Segment • Anticipated year-over-year core Financial Snapshot sales decline related to lower (US$ in millions) automotive volumes and weak 4th Quarter China / Europe truck production y-o-y 2012 2011 change • Moderating growth rates in global Sales $118 $132 -10% agriculture and construction Op Income $10.1 $16.4 -38% equipment markets as well as NA truck Op Margin 8.5% 12.5% (400) bps • Margin decline due to lower production volumes Sales Trend Sales Core Sales Change $150 30% 25% $130 22% 20% 9% $110 10% 0% -2% $90 0% -11% $70 -9% -10% -14% $50 -20% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 10

Fourth Quarter Cash Flow / Net Debt (US$ in millions) Free Cash Flow EBITDA $72 Capital Expenditures (5) Cash Interest (4) Free Cash Flow Conversion Trend 300% Cash Taxes (26) 298% Working Capital/Other 19 254% Free Cash Flow $56 186% 140% Net Debt Reconciliation 137% 132% 127% 126% 120% 123% 121% 116% 114% Net Debt - May 31, 2012 $319 100% 100% Acquisitions 40 Share repurchases 24 80% 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 FX/Other 2 Free Cash Flow (56) Net Debt - Aug 31, 2012 $329 Net Debt/EBITDA (1) 1.1X Net Debt/Capitalization 24% Record Full Year Cash Flow with Great Working Capital Management 11

Record Fiscal 2012 Results Deployed $70M Op Margins 24% EPS on tuck-in 5% Core +110 Basis Increase (1) Growth Acquisitions Points (1) ROW $196M of FCF $63M Share Sales up with 126% Repurchases 14% Conversion of Net Earnings (1) (1) Continuing operations, excluding asset impairment charge and debt refinancing costs 12

Recent Acquisition - CrossControl Core Products Headquarters: Alfta, Sweden Financials: Annual Revenue ~$40M Offering: Smart displays, controllers, software Served Markets: Forestry, mining, cargo, rail Controllers Displays End Markets • Tuck-in to Maxima / end market opportunities aligned with secular growth markets • Leverage advanced technology across global customer base • Extend display and controller product lines into agriculture, construction equipment 13

Fiscal 2013 Outlook (US$ in millions except EPS) Full Year 2012 2013E Change Sales $1,605 $1,680- 1,720 5 - 7% Diluted EPS $2.08 $2.20 - 2.30 6 - 11% Full Year Assumptions: • Core sales growth of 3-5% • Average FX rates approx. $1.25/1€ and $1.55/1£ • Carryover acquisition revenue of approximately $50 million • Modest base business margin expansion • ~23% effective tax rate • Shares outstanding 74.0-74.5 million • Excludes potential future acquisitions and share repurchases 2013 Free Cash Flow Forecast of ~$200 Million 14

Year-Over-Year Segment Core Sales Trends Industrial F’13: 5-7% Energy F’13: 8-11% 40% 30% 23% 22% 30% 27% 27% 20% 20% 23% 22% 15% 20% 13% 11% 14% 12% 10% 7% 10% 5% 5% 4% 0% 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Electrical F’13: 3-5% Engineered Solutions F’13: (3)%- flat 20% 40% 14% 30% 25% 22% 10% 10% 20% 7% 7% 9% 3% 10% 2% 0% 0% 0% 0% Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 Q1 11 Q2 11 Q3 11 Q4 11 Q1 12 Q2 12 Q3 12 Q4 12 -2% -2% -10% -9% -11% -14% -10% -20% Consolidated Fiscal 2013 Core Sales Growth of 3-5% 15

First Quarter 2013 Outlook (US$ in millions except EPS) 1st Quarter 2012 2013E Change Sales $393 $390 - 395 (1)% - 1% Diluted EPS $0.50 $0.48 - 0.52 (4) - 4% First Quarter Expected to Have Most Difficult Comparisons of the Fiscal Year – FX and Core Growth 16

Targeting Continued Growth ($ in millions except per share data. Fiscal years ended August 31) Sales EBITDA $1,680- $400 $297- $2,000 $1,720 $307 $1,605 $ 283 $1,446 $260 $300 $1,600 $1,445 $244 $1,274 $228 $1,161 $185 $1,118 $181 $171 $1,041 $200 $1,200 $144 $967 $87 $84 $90 $106 $727 $100 $800 $461 $463 $585 $400 $0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F $3.00 EPS Free Cash Flow $2.20- $250 $2.30 ~$200 $2.50 $2.08 $196 $1.94 $200 $1.81 $158 $2.00 $1.68 $150 $145 $148 $151 $150 $1.44 $1.08 $1.50 $1.19 $102 $85 $0.94 $0.92 $100 $50 $1.00 $56 $0.51 $0.60 $0.70 $47 $25 $50 $0.50 $0 $0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013F (2006-2011 reflect discontinued operations for European Electrical; 2013 Guidance as of September 27, 2012) Note: EBITDA, EPS and FCF exclude discontinued operations, cumulative effect of changes in accounting, extraordinary charges, refinancing/debt extinguishment, net gains on business divestitures, tax gains and other special items. EBITDA and EPS also exclude impairment and restructuring charges. 17

Q & A Future Key Dates: • Annual Investor Day – October 2, 2012 • First Quarter Fiscal 2013 Earnings – December 19, 2012