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Altra Overview

Following the transformative merger with four of Fortive Corporation’s Automation and Specialty (A&S) businesses that was completed in October 2018, Altra is solidly positioned to deliver sustainable value to its stakeholders with:

  • Leading positions across a diverse set of end markets and specialty niche industries with attractive secular trends
  • A broad portfolio of operating companies with an excellent margin profile and significant margin expansion potential
  • Strong free cash flow generation supporting quick de-levering
  • A proven world class business system

Why Invest

Premier Global Leader

Strong Market Position

Prudent Balance Sheet Management

Cash-generative Business Model

World Class Business System

A Premier Global Company with a
Well-Established History

  • Organic growth driven by innovation and a focus on serving as a collaborative essential partner to our customers
  • Well-respected operating companies and brand names averaging over 85 years in operation
  • Leading technology in sophisticated electromechanical power transmission, motion control and automation software solutions
  • Well positioned to capitalize on future trends including Industry 4.0
  • Established track record of prudently managing the balance sheet and providing shareholder value
  • Solid platform for future disciplined strategic acquisitions

$1.7bn1 Global Leader
in Precision Motion Control
and Power Transmission

Enhanced financial
profile
Positioned to accelerate
innovation
Expanded suite of
technology & solutions
Increased exposure to
attractive secular trends

1 - Proforma revenues for the 12 months ending December 31, 2021 excluding the Jacobs Vehicle Systems business which was divested on April 8, 2022. Reported revenues in 2021 were $1.9 billion. Refer to slide 25 in the Q1 2021 Earnings Presentation for details on proforma results.

Strong Market Position Across a Diverse Set of Attractive End Markets

Altra has a long history of leveraging its well-established industry-leading brands to serve as a critical supplier to customers across a diverse set of markets.

  • Strong position at the higher end of the technology spectrum for attractive, high-growth, high-margin end markets, including medical, aerospace and defense, factory automation and robotics
  • Growing exposure to attractive secular trends
  • Decreasing exposure to more cyclical end markets
  • Supplying critical components for high-demand medical equipment and supplies needed in the fight against COVID-19

Revenue Breakdown by End-Market & Geography1

To view full charts, scroll left and right, or click here.


1 - Revenues for the 12 months ending December 31, 2021.

Track Record of Prudently Managing Balance Sheet

Managing margins through:

  • Implementation of established profit improvement initiatives and synergy capture
  • Proactive cost actions in response to current environment
  • Continued focus on high profit end markets

Adequate Liquidity and No Near Term Debt Maturities

As of December 31, 2021

As of December 31, 2021

* Excludes $13.2M of other debt that has various maturities

Strong Free Cash Flow Generation Supports Quick De-levering

  • Prioritizing debt pay down until leverage metrics return to historical levels of 2.0-3.0x Net Debt/EBITDA

Combined Company Net Debt / LTM Adj. EBITDA1

  1. Significant cash flow generation: $176.4M Non-GAAP Adjusted Free Cash Flow
  2. Leverage the Altra Business System to reduce working capital
  3. Substantial room with covenant limits under credit facility

1 Non-GAAP measure. Click here for a reconciliation of Audited Net Income to Non-GAAP Adjusted EBITDA

2As of December 31, 2021, Altra had $1.4 billion of indebtedness outstanding.

An Integrated Business Management Framework to
Drive Sustainable Competitive Advantage & Ensure Superior Execution

    Systematically identifies and eliminates waste

    • Continuous improvement culture
    • Best-in-class operating performance
    • Capture bottom-line savings

    Drives organic growth

    • VOC fuels innovative solutions
    • Shortest lead-time, highest quality, best value

    Develop outstanding leaders

    • Develop new leaders
    • Attract new talent
    • Provide people with the opportunity to succeed
ABS


Strategic Priorities to Drive Shareholder Value

Altra is focused on executing against its clearly defined strategic priorities in order to capitalize on value creation.

Leverage Altra’s Strengths

Focus on Margin Enhancement

Expediently De-lever

Drive Top-line Organic Growth

Leverage Altra’s strengths as a premier industrial company

  • Maximize value capture via cost and sales synergies
  • Leverage best practices across the organization
  • Build extraordinary teams that deliver extraordinary results

Focus on margin enhancement

  • Continue to deploy established profit improvement initiatives
  • Execute on cost savings and synergies
  • Capitalize on improving conditions in high growth end markets

Leverage strong Free Cash Flow generation to expediently de-lever and strengthen the balance sheet

  • Prioritize debt pay down until leverage metrics return to historical levels of 2.0-3.0x Net Debt/EBITDA

Taking aim at the right end markets and applications to capture organic growth

  • Leverage cross selling momentum
  • Capitalize on technology sharing to accelerate innovation e.g. significant VOC-driven progress with industrial IoT
  • Strategically infuse capital into operating companies to support growth and business improvement – e.g. robust digital marketing capabilities
  • Address emerging growth opportunities