Fiscal 2010 Third Quarter Earnings Call

June 17, 2010

Bob Arzbaecher, Chairman and CEO
Andy Lampereur, CFO
Karen Bauer, Investor Relations

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
Actuants Securities and Exchange Commission filings.
All estimates of future performance are as of June 17, 2010.
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 earnings press release, or refer
to the Investors section of Actuants website (www.actuant.com) for
a reconciliation to the appropriate GAAP measure.

Third Quarter Highlights

EPS increased 45% to $0.32 from $0.22 last

year, excluding restructuring & impairment costs

Year-over-year core sales rate of change

improved substantially to +16% from -3% last

quarter
Operating profit margins (excluding restructuring

& impairment costs) increased 280 basis points

compared to last year
$46 million free cash flow with good working

capital management
Completed four acquisitions with $44 million of

capital deployed (including Selantic after quarter

end) bolstering Industrial and Energy businesses

Third Quarter Operating Results

(US$ in millions except EPS)

F' 2009
$285.2

F' 2010
$334.6

Change
17%

EBITDA

$22.7
8.0%

$49.4
14.8%

118%

Diluted EPS- GAAP

$0.06

$0.30

400%

Sales

Third Quarter Diluted EPS Reconciliation

F' 2009
Continuing operations - GAAP
Restructuring costs
Impairment charges
Adjusted EPS

$0.06
0.11
0.05
$0.22

45% Adjusted EPS Growth

5

F' 2010
$0.30
0.02
$0.32

Consolidated Core Sales Trend

Sales (US$ in millions)

Year-over-Year
Core Sales Rate of Change

Significant Improvement in Core Sales Rate of Change

6

Year-Over-Year Operating Profit Margin

Change
Operating profit margin excluding restructuring and impairment charges for all periods presented

(basis points)

Industrial Segment
Substantial improvement in

Financial Snapshot

year-over-year sales rate of

change with increased
economic activity
Approximately $3 million of

revenue in the third quarter

from recently completed
Integrated Solutions
acquisitions
Margins improving with

higher sales and

restructuring benefits

(US$ in millions)

3rd Quarter
Sales
Op Income (1)
Op Margin (1)

2nd Quarter

2010
$80

2009
$63

$20.7
26.0%

y-o-y
change

sequential
change

27%

2010
$69

$15.6

33%

$15.8

31%

24.8%

120

22.9%

310

bps

15%

bps

(1) Excludes restructuring charges of $0.3 million and $1.0 million in Q3 2010
and 2009, respectively, and $4.9 million in Q2 2010.
Sales

Sales Trend

Core Sales Change

Energy Segment
Modest sequential

Financial Snapshot

improvement in core sales

rate of change

(US$ in millions)

3rd Quarter

Continued weakness in

refinery and seismic.

Emerging/new market growth
strong.

Sales
Op Income (1)
Op Margin (1)

Less than $5 million of annual

Gulf of Mexico deep water

revenue
Year-over-year margin

declined due to lower volumes

and unfavorable mix

2010
$57

2009
$62

$7.3
12.9%

2nd Quarter
y-o-y
change

sequential
change

-9%

2010
$54

$11.8

-38%

$5.6

30%

18.9%

(600)

10.4%

250

bps

5%

bps

(1) Excludes restructuring charges of $0.1 million and $0.3 million in Q3 2010
and 2009, respectively and $1.7 million for Q2 2010.
Sales

Sales Trend

Core Sales Change

Electrical Segment
Financial Snapshot

Substantial improvement in

year-over-year sales rate of

change

(US$ in millions)

3rd Quarter

Global DIY, marine aftermarket

and OEM sales growing

Later cycle utility and

commercial construction
markets are still a headwind
Significant margin

improvement both year-overyear and sequentially due to

restructuring benefits

10

Sales
Op Income (1)
Op Margin (1)

2nd Quarter

2010
$87

2009
$84

$6.7
7.7%

y-o-y
change

sequential
change

3%

2010
$82

$3.1

116%

$4.9

37%

3.7%

400

6.0%

170

bps

6%

bps

(1) Excludes restructuring charges of $1.4 million and $5.6 million in Q3 2010
and 2009, respectively and $0.5 million in Q2 2010. Also excludes
impairment charges of $4.8 million in Q3 2009.
Sales

Sales Trend

Core Sales Change

Engineered Solutions Segment

Financial Snapshot

Robust year-over-year core

(US$ in millions)

sales growth in most key

markets including European
truck, auto and RV
North American truck,

construction & agriculture

equipment beginning to show
improvement.
Substantially improved

operating margins reflect both

higher volumes and
restructuring benefits

11

3rd Quarter
Sales
Op Income (1)
Op Margin (1)

2010
$112

2009
$76

$13.6
12.1%

2nd Quarter
y-o-y
change

sequential
change

46%

2010
$89

$1.0

1256%

$6.0

126%

1.3%

1080

6.7%

540

bps

25%

bps

(1) Excludes restructuring charges of $0.4 million and $3.7 million in Q3 2010
and 2009, respectively and $2.0 million in Q2 2010.

Sales

Sales Trend

Core Sales Change

Third Quarter Cash Flow / Net Debt

(US$ in millions)

Free Cash Flow

EBITDA
Capital Expenditures
Cash Interest

$49
(6)
(3)

Cash Taxes
Working Capital/Other
Free Cash Flow

(2)
8
$46

Free Cash Flow Conversion Trend

298%

248%

300%

~165%

//

Net Debt Reconciliation

Net Debt - February 28, 2010
Acquisitions
Free Cash Flow

$377
27
(46)

FX / Other - net
Net Debt - May 31, 2010

1
$359

140%

137%

140%

114%

120%

121%

119%

116%

100%

100%
80%

2001

2002

2003

2004

2005

2006

2007

2008

See supplemental financial schedules for calculation

Full Year Free Cash Flow Forecast of $120 - 125 Million

12

2009

2010 F

Deep Water Horizon Expected Impact

Short Term

Longer Term

Creates uncertainty delayed

decisions

Increased inspection,
maintenance and redundancy
regulations likely

Moratoriums on new deep water

drilling
Current exposure to Gulf of
Mexico deep water is less than
$5 million with global deep water
exposure of less than $50
million.

Hydratight (maintenance) and

Cortland (umbilicals, heavy
lifting, etc) both expected to
benefit
Similar to UK incident in the
1980s which created
heightened safety regulations

Long term, depletion of existing reserves and increasing global

energy demand will require deep water oil & gas extraction
13

Enerpac Integrated Solutions Acquisitions

Team Hydrotec

14

Hydrospex

Expanded geographic presence, product offerings and customer

relationships

Major Enerpac IS Win

Redesign bogie system for their 120/160
meters/ton cranes
Design contains four front and four rear bogies
Each bogie has 2,400 ton capacity
Wheels hydraulically propelled
Order value ~7 million with delivery between
December 2010 and December 2011

15

Energy Acquisitions
Biach Industries - Nuclear
Tensioners

Stud & Nut

Handling

Load
Measurement

Selantic
Deep Water Slings

Mooring Tethers

Seismic Straps

Globalizing specialized nuclear tools and heavy-lift rope and slings

16

Fiscal 2010 Guidance Update

(US$ in millions except EPS)

Fourth Quarter
Change
Q4 2010
from PY
$305-$315 5% - 9%

Sales
Diluted EPS (1)

$0.24 - $0.29

33%-61%

Full Year
Fiscal
Change
2010
from PY
$1,240-$1,250
0% - 1%
$0.95 - $1.00

0% - 5%

Assumptions:
Fourth quarter core sales growth of approximately 7-9%
Excludes restructuring costs and future acquisitions
Fourth quarter foreign currency assumptions:
$/ = 1.25
$/ = 1.45

17

(1) Continuing operations, excluding restructuring, impairment and debt extinguishment charges

Fiscal 2011 Outlook

(US$ in millions except EPS)

Sales

Fiscal
2010
$1,240-$1,250

Diluted EPS (1) $0.95 - $1.00

Fiscal
Change from
2011
Midpoint
$1,310-$1,360
5% - 9%
$1.20 - $1.35

23% - 38%

Assumptions:
Full year core sales growth of 6-8%
Carryover acquisition revenue of approximately $40 million
Excludes restructuring costs and future acquisitions
2% convertible bonds remain outstanding through the entire fiscal year
Fiscal 2011 quarter foreign currency assumptions:
$/ = 1.25
$/ = 1.45
18

(1) Excluding restructuring costs

FX Translation Sensitivity
Sales

(in millions)

19

Diluted EPS

$/ = 1.20

$/ = 1.25

$/ = 1.30

$/ = 1.35

$/ = 1.20

$/ = 1.25

$/ = 1.30

$/ = 1.35

$/ = 1.40

$/ = 1.45

$/ = 1.50

$/ = 1.55

$/ = 1.40

$/ = 1.45

$/ = 1.50

$/ = 1.55

Note that fiscal 2010 average foreign currency translation rates are:
$/ = 1.37
$/ = 1.52

Q&A
Future Key Dates:
Fourth Quarter Fiscal 2010 Earnings September 29, 2010
Annual Investor Day October 12, 2010 (NYC Hilton)

Supplemental Financial Data

Diluted Earnings Per Share Excluding Special Items

2001
Diluted Earnings per Share (EPS)
Net of Tax Adjustments:
Change in Accounting Principal
Discontinued Operations
Debt Extinguishment Costs
Net Gain on Business Divestitures
Restructuring Charge
A/R Securitization Establishment
Litigation Matters Related to Businesses
Divested Prior to the Spin-off of APW, Ltd.
Impairment Charge
Tax Adjustment
DILUTED EPS EXCLUDING SPECIAL ITEMS

0.71

2003

2004

2005

2006

2007

2008

2009

(0.06)

$ 0.59

$ 0.66

$ 1.21

$ 1.50

$ 1.69

$ 1.93

$ 0.24

0.17
0.24
0.25

(0.19)
0.45

(0.01)

(0.02)

(0.03)

(0.04)

0.03

0.15
0.02

0.07

0.07

0.16

0.24

2002
$

0.03
(0.27)
0.03
0.01

0.08
0.29
$

Note: Amounts may not add due to rounding

0.51

0.60

$ 0.70

$ 0.92

(0.01)
$ 1.19

(0.12)
$ 1.43

(0.02)
$ 1.70

(0.04)
$ 2.00

$ 0.95

EBITDA
(US$ in millions)
2001

2003

2002

2004

2005

2006

2007

2008

2009

EBITDA
Net Earnings

$24

($3)

$29

$35

$71

$93

$105

$123

$14

Net Financing Costs

49

33

21

14

17

26

33

36

42

Income Tax Expense

16

16

15

35

33

46

53

(0)

Depreciation & Amortization

17

12

15

17

22

27

35

43

51

(1)

(0)

(0)

(1)

(1)

(2)

(3)

10

$144

$177

$217

$252

$116

11

24

Minority Interest
Change In Accounting Principle
Discontinued Operations
EBITDA

7
1

10

$107

$68

$82

$80

Adjustments To EBITDA:
Non-Continuing Businesses

(7)

Debt Extinguishment Costs

Net Gain On Business Divestitures

Restructuring Charge

(11)
16

37

(15)
2

Impairment Charges

31

Litigation Matters Related to Businesses

Divested Prior To The Spin-Off Of APW Ltd.

Adjusted EBITDA

0
$87

6
$84

$90

$106

$144

$182

$222

$263

$171

Net Earnings Excluding Special Items

(US$ in millions)

2001
NET EARNINGS EXCLUDING SPECIAL ITEMS
Net earnings
Net of Tax Adjustments
Change in Accounting Principal
Discontinued Operations
Debt Extinguishment Costs
Net Gain on Business Divestitures
Restructuring Charge
Impairment Charges
A/R Securitization Establishment
Litigation Matters
APW, Ltd.
Tax Adjustments
NET EARNINGS EXCLUDING SPECIAL ITEMS

2002

$24

($3)

7
10
11

2004

2003

2005

2006

2007

2008

2009

$29

$35

$71

$93

$105

$123

$14

(1)

(1)

(2)

(3)

(11)
25

10
1

10

16
19

(8)
$88

(2)
$106

(3)
$127

$60

(9)
1
0
4
$17

$25

$34

$49

(1)
$70

Cash Flow
(US$ in millions)
2001

2002

2003

2004

2005

2006

2007

2008

2009

Adjusted EBITDA

$87

$84

$90

$106

$144

$182

$222

$263

$171

Discontinued Operations
Total EBITDA

$87

$84

$90

$106

1
$145

3
$185

4
$226

7
$270

(1)
$170

Cash Interest
Cash Taxes
Capital Expenditures
PWC/Other
Free Cash Flow

(47)
(9)
(5)
24
$50

(30)
(14)
(7)
(8)
$25

(20)
(18)
(13)
8
$47

(12)
(21)
(11)
(6)
$56

(15)
(16)
(15)
(14)
$85

(23)
(28)
(20)
(12)
$102

(28)
(36)
(31)
17
$148

(35)
(48)
(44)
8
$151

(36)
(20)
(21)
57
$150

$17
298%

$25
100%

$34
137%

$49
114%

$70
121%

$88
116%

$106
140%

$127
119%

$60
248%

Net Earnings (1)

Free Cash Flow Conversion

(1) Net earnings excluding special items (see previous slide) - excludes restructuring and impairment charges, discontinued operations,
debt extinguishment charges and non-recurring income tax gains.