JBT Investor Presentation May 2020 Forward-Looking Statements - - PowerPoint PPT Presentation

JBT Investor Presentation

May 2020

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Forward-Looking Statements

These slides and the accompanying presentation contain “forward-looking” statements, including statements about management’s expectations regarding trends in the food and air transportation markets, strategic initiatives, acquisition strategies and long-term goals, which represent management’s best judgment as of the date hereof, based on currently available information. Actual results may differ materially from those contained in such forward- looking statements. JBT Corporation’s (the “Company”) most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q, filed with the Securities and Exchange Commission, include information concerning risks and uncertainties, including the factors set forth under “Item 1A. Risk Factors”, that may cause actual results to differ from those anticipated by these forward-looking

• statements. The Company undertakes no obligation to update or revise these

forward-looking statements to reflect new events or uncertainties.

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JBT Snapshot

1 As of May 1, 2020 ² Non-GAAP figure. See Appendix for reconciliation tp segment operating profit.

Founded 1884 Listed JBT (NYSE) Market Cap $2.3 billion1 Employees 6,400 Countries 25+ JBT at a Glance – figures for FY2019 Revenue Adjusted EBITDA² Leading Global Technology Solutions Provider to High-Value Segments of the Food & Beverage Industry 32% 68% 25% 75%

AeroTech FoodTech

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One JBT: A Sustainable Growth Culture

ONE Purpose and Set of Values Across the Entire Organization

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Durable Shareholder Value Creation

Returns “Value creation is a virtuous circle, starting with margin expansion initiatives generating results that are reinvested to drive organic growth, creating customer value and returns that support further growth – and the cycle continues…”

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Farm/Ranch

FoodTech is a Leading Technology Solutions Provider to High-Value Segments of the Food Industry

Global Food and Beverage Producers Distribution Restaurants Grocery / C-Store Food Service Commissary Value Chain Delivering innovative solutions we believe offer best-in-class yield and productivity, with a goal of maximizing customer profitability Clear Value Proposition for JBT Customers

▪

Food Safety

▪

Yield

▪

Automation

▪

Reduced Operating Costs

▪

Uptime

▪

Full-Line Solutions

▪

Global Service and Support Consumer

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Cargo Loader

2 1

LEKTRO Tractor Deicer

4 3

Military Loader Passenger Boarding Bridge

7 8

Military A/C Unit

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Ground Power Unit A/C Unit 10

Providing End-to-End Solutions Across the Airport Infrastructure Spectrum Ground Support Equipment Airport Services Key AeroTech Products & Services Jetway Systems

Tow Bar Tractor

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Passenger Steps Baggage Handling Technology 12 Critical Systems Facilities Support 11

Ground Support Equipment ensures the efficient, safe, and reliable turnaround of aircraft on the ground through aircraft, passenger, and cargo handling operations Jetway Systems enhances the customer boarding experience across a range of aircraft types, from regional aircraft up to the largest wide-body aircraft in the world Airport Services provides technical expertise and maintenance services to a range of sophisticated baggage handling systems, boarding bridges, and airport facilities Military aviation equipment increases combat readiness through minimizing aircraft downtime and providing field-ready power & cooling systems to an array of tactical aircraft

9 1 2 3 4 5 7 8 10

11 12

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AeroTech is the Most Comprehensive Platform Serving the Global Airport Infrastructure Market

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Growing Recurring Revenue 40%+ of JBT Revenue is Recurring

▪ Growing our sales / service network and

capabilities

–

Investing in Field Service technicians globally support equipment and leases

–

Cross-training for increased regional support and utilization

–

Increasingly bundling ProCARE contracts with equipment sales

–

Developing more parts kits vs. single-part sales

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Generating new opportunities through increased focus on outbound aftermarket sales

▪ Many customers looking to “outsource” more

engineering and maintenance activities due to high turnover and lower skill levels

▪ JBT provides “PRoCARE powered by iOPS”,

which supports our customers with dedicated project management, data analytics, weekly production reports, “behind the scenes” data monitoring, and cloud-based data collection / aggregation

Key growth drivers:

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JBT is Positioned to Benefit From Positive Drivers and Trends

SOURCE: 1 https://www.ota.com/news/press-releases/19031; 2 http://www.reuters.com/middle-class-infographic

Positive Macro Drivers Accelerating Trends

Increasing Customer Adoption of Automation and Information Technology

• Shrinking labor availability

with rising wages / costs

• Adoption rates of IOT

solutions

• Improve yield, throughput

and quality

Consumer Focus on Health, Safety & Convenience

▪ Increasingly selective

consumers seeking ‘on- demand’ food Protein & Value-Added Food & Beverage Consumption

▪ Food industry pivoting to

value-added foods Emergence of Clean Labels & Organic Foods

▪ 10%+ annual growth2

Consolidating Food Industry

▪ Industry requires globally

capable suppliers Growing Middle Class

▪ 2x growth by 20301; Asia is a

significant contributor

Automation and Information

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The Changing Environment Creates Opportunities for JBT

Well-positioned to drive growth in economic recovery

• Solutions providing lower labor utilization and increased safety; coupled with higher
• utput and yield, including, for example:
• Robotic harvesting
• Automated loading and unloading of JBT equipment
• Clean in Place (CIP) food equipment technologies
• Waterjet protein trimming and portioning systems
• Automation with robotic vehicles to provide safe, precise, on-time delivery of materials

in manufacturing and warehousing environments.

• iOps remote monitoring of critical processes in food production and air transportation

activities – measuring and documenting data to turn preventative or reactive maintenance into predictive maintenance driving a lower overall cost of ownership.

• Growing demand for longer shelf life and clean labels driving preservation technologies

like High Pressure Processing (HPP) to ensure the highest quality in taste, nutrition, and safety

• Flexible solutions – providing upgrades to automation of a single food process, or an

entire food processing line, to meet customers where they are in their planning during the pandemic

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FoodTech has completed 14 acquisitions since 2014 for ~$1 billion to expand its offerings and technology. AeroTech has completed 2 acquisitions since 2017 for ~$60 million adding to military and electric product offerings.

Continued Growth Opportunities through Acquisitions

Liquid Foods

$8B+

Market Leader Room to Grow Capability Gap Protein Primary Portioning Inspection Mixing/ Grinding/ Blending Injecting/ Marination Filling / Forming Weighing/ Packaging Coating/ Frying Cooking Freezing Slicing Packaging Preservation Inspection Raw Material Handling Extraction/ Refining Beverage Handling Pasteurizing/ Evaporation/ Bulk Filling Storage Thawing Ingredient & H2O Prep Mixing/ Metering Blending Sterilization CIP/ Controls & Instruments Filling Packaging Preservation

$18B+

Primary Secondary Further EOL

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JBT Operating System

What we are doing…

• Building on JBT’s strong RCI

foundation and culture

• Creating process rigor in how we

run our business

• Creating a JBT standard across all

business units that is consistent and transcends any single individual, thereby enabling more fungibility of our resources across businesses

• Standardizing what we report, how

we report, and how we solve problems

Desired results…

• Drive visibility,

accountability, and alignment within each business

• Eliminate unnecessary or

duplicative reports and meetings

• Minimize reporting and

maximize problem solving related to business execution

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Strong Balance Sheet with a Focus on Deleveraging

Balance Sheet

Capital Deployment Priorities

▪ Investing in high ROI new product development and growth initiatives ▪ Debt reduction ▪ Quarterly dividends ▪ Strategic acquisitions ▪ Share repurchases to offset dilution from management stock-based compensation

1 See Appendix for calculations. 2 Financial Liquidity is defined as cash plus borrowing capacity under our credit facilities.

March 31, 2020, $ millions Gross Debt 734 Less: Cash on Hand (75) Net Debt 659 Key Metrics – as of March 31, 2020 Net Debt / Adjusted EBITDA1 2.2x Financial Liquidity2 $328M

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JBT – update concerning COVID-19

We are actively utilizing the JBT management framework to minimize the disruption from COVID-19 and have undertaken the following actions in response to the outbreak:

• Established a dedicated, cross-functional senior leadership Response Team that meets

weekly or more quickly to make decisions, adjust operational responses, and communicate across stakeholders accordingly.

• Regular, weekly communications with employees, with specific and consistent guidance

sourced from leading global and local health authorities.

• Maintaining close contact with customers to react quickly to potential changing needs

and to appropriately plan inventories and production levels.

• Communicating with suppliers and developing plans to mitigate short- and medium-term

disruption of our supply chain.

• Continuing our key strategic initiatives to assure the long-term health of JBT.

The long-term fundamentals behind JBT Corporation’s business have not changed and continue to support a compelling investment thesis. JBT has positioned itself to be in front of the fastest growing trends in the food industry…. clean-labels, convenience foods, labor-saving automation, environmentally conscious solutions…to continue to be a leading provider in the food production value chain.

JBT Investor Presentation – Appendix

Non-GAAP financial measures are provided to enhance investors’ overall understanding of

• ur financial performance by eliminating effects of certain items that are not comparable from
• ne period to the next. In addition, this information is used by management as a basis for

evaluating performance and for the planning and forecasting of future periods. This information is not intended to be a substitute for, nor should it be considered in isolation of, financial measures prepared in accordance with U.S. GAAP.

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Reconciliation of Segment Operating Profit to Adjusted EBITDA

(in millions) FoodTech AeroTech Operating Profit 184.7 $ 78.9 $ M&A related costs¹ 13.9 0.9 Adjusted Operating Profit 198.6 79.8 Depreciation and amortization 58.2 4.7 Adjusted EBITDA 256.8 $ 84.5 $ ¹ includes integration costs, amortization of inventory step-up, and transaction costs For the year ended December 31, 2019

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Leverage Ratio Calculations

($ in millions) As of March 31, 2020 Total debt 733.9 $ Cash and cash equivalents (75.4) Net debt 658.5 Other items considered debt under the credit agreement 32.3 Consolidated total indebtedness 690.8 $ Trailing twelve months (TTM) Adjusted EBITDA 306.4 $ Other adjustments to EBITDA under the credit agreement (20.3) Consolidated adjusted EBITDA 286.1 $ Net debt to adjusted EBITDA (Net debt / TTM Adjusted EBITDA) 2.2 Bank leverage ratio (Consolidated total indebtedness / Consolidated EBITDA) 2.4