ERIC+ETCHART

Eric Etchart, President, Manitowoc Cranes

November 22, 2010

China International Crane Summit

2Introduction

Foodservice SegmentManitowoc Foodservice

China International Crane Summit2

In Chinese

33

About The Manitowoc Company, Inc.

Founded in 1902

Leading global manufacturer

Headquarters Manitowoc, Wis., U.S.

Two divisions:

Manitowoc Cranes

Manitowoc Foodservice

More than 16,000 employees worldwide


4About The Manitowoc Company, Inc.Business segments

Foodservice Segment

Heating, cooking, and food-prep equipment

Ice, beverage, and commercial refrigeration equipment

Food retail equipment

Crawler cranes

Tower cranes

Rough-terrain, all-terrain, and truck cranes

Boom trucks and industrial cranes

Manitowoc Cranes Manitowoc Foodservice

4 China International Crane Summit

511%6%

83%

Full-year 20092007

Cranes

Foodservice

Cranes

FoodserviceMarine

40%

60%

Cranes

Foodservice

About The Manitowoc Company, Inc.Transformational changes


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About Manitowoc Cranes

Largest installed base of cranes in the world

Strong residual values through design/quality/support

Innovation more than 150 patents/500 trademarks

11 factories in countries around the world


Grove cranes on the site of the Chilean miner rescue operation

77

China


8The Manitowoc Company, Inc. China

Four factories

Five sales offices

Broad base of installed cranes

1,850 Manitowoc employees

1,350 Cranes

500 Foodservice


Manitowoc Foodservice Hangzhou

99

Manitowoc CranesChina

Committed to world-class manufacturing in China:

Zhangjiagang new tower crane factory opened in 2005

TaiAn joint venture; truck crane production since April 2008; new factory in 2007


Manitowoc Cranes in Zhangjiagang

Manitowoc Projects in China

Nanjing Yangtze River Bridge:Two MD3600 tower cranes

Longtan Dam: Two MD2200s and one MD 1800 tower cranes

Sutong Bridge: One MD 1800 tower crane

Qilu Petrol Chemical Plant: M21000 crawler crane

Anhui Electrical Power Plant: M18000 crawler crane

Tanjian China Electrical Power Plant: GMK 7450 AT crane

Inner Mongolia ZhiRi River Wind Farm: GTK1100

1111

China is the #1 global market

The Chinese market did not completely shut down like other global markets, and was the first to respond to market stimulation plans.

Strong construction activities in 2010

Increase in government-sponsored infrastructure projects

Energy and power markets remain strong

Property market remains very active

MCR Rourkela plant in China


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Manitowoc CranesNew products for China, in 2010

Potain tower cranes

MC120 launched this year

Manitowoc crawler cranes

New crawler crane line

MLC100 crawler crane

Dongyue truck cranes

GT 25.5 truck crane

GT 55 launching at bauma China

MLC100 crawler crane

GT25.5 truck crane


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China: Tower crane sales, total market 2001-2009


0

5000

10000

15000

20000

25000

30000

2001 2002 2003 2004 2005 2006 2007 2008 2009

Tower Crane Market

1414

China: Mobile crane sales, total market2001-2009


0

5000

10000

15000

20000

25000

30000

2001 2002 2003 2004 2005 2006 2007 2008 2009

Mobile Crane Market

1515

China: Crawler crane sales, total market2001-2009


0

100

200

300

400

500

600

700

2001 2002 2003 2004 2005 2006 2007 2008 2009

Crawler Market

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Challenges and changes


Challenges of a multi-national company working in the Chinese market

China is a very price-sensitive market

High employee turnover and employee expectations of higher wages than normal for China

Chinese joint venture partners often have conflicting goals

Difficult to compete with imported crane products; growing new restrictions on importation

China is a massive country and distribution is difficult

The challenge of counterfeit parts

Protecting intellectual property rights

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Challenges of the lifting industry worldwide

A global manufacturing footprint is required

Increased and stiffer competition

Customer service requirement

Equipment financing and its growing importance

People resources are a challenge everywhere in the world


Crane Care distribution center Jeffersonville, Ind., U.S.

1919

Wind power is one of the fastest-growing business sectors for industry and has presented crane manufacturers a number of challenges.

Approximately 20,000 wind turbines worldwide at present

Need to lift loads of 120 t to heights of 70 100 m and for 3MW wind turbine installation

Transport to inaccessible and tight job sites

Challenges of the lifting industryApplications Wind turbines


Grove GTK1100 in China

2020

Large capacity cranes with large component sizes help customers increase revenue immediately.

Lifting contractors want very high-capacity cranes

Customer costs ownership, transport, etc.

Trend to bigger cranes with state-of-the-art engineering

Challenges of the lifting industryApplications Heavy lifting

Manitowoc 31000 at the Manitowoc, WIs. facilityAugust 2010


2121

Challenges of the lifting industryCounterfeit parts

While counterfeit parts are not new to the industry, the problem continues to grow.

Most common in tower cranes

Much greater risk of failure using counterfeit parts

More vigilance needed by industry


2222

Changes of the lifting industryCustomer service culture

Great service is invaluable to customers and can be the difference between losing or closing a sale.

Trend to a full-range of product support services

Less cyclical

Customers prefer in-house maintenance


Crane Care contact center in Zhangjiagang

23

Changes in the lifting industry

Changing standards for design and use of cranes

Over-capacity of the industry

Tier 4 engine implications

Consolidation of crane rental companies

More global rental companies

Rental rates and utilization


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In conclusion: What China means?

If youre not a strong player in China, youre not going to be a leader in your industry

There is no doubt, its just a matter of time that some of the so-called Chinese competitors to the established crane companies, will be global brands soon


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