Lehman Brothers 2007 High-Yield
Bond Conference
March 27, 2007
Forward-Looking Statements
Our remarks that follow, including answers to your questions and these slides,
include statements that we believe are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act. Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause actual results, performance or achievements of our business to
differ materially from those expressed or implied by such forward-looking
statements. Although we believe that our plans, intentions and expectations
reflected in such forward-looking statements are based on reasonable
assumptions, we can give no assurance that such plans, intentions,
expectations, objectives or goals will be achieved. Important factors that could
cause actual results to differ materially from those included in forward-looking
statements include: impact of competition; continued sales to key customers;
possible fluctuations in the cost of raw materials and components; possible
fluctuations in currency exchange rates, which affect the competitiveness of our
products abroad; possible fluctuation in interest rates, which affects our earnings
and cash flows; the impact of substantial leverage and debt service on us;
possible loss of suppliers; risks related to our asset backed facilities;
dependence on key personnel; labor relations; potential liability for
environmental, health and safety matters; potential future legal proceedings and
litigation; and other risks listed from time to time in the Company’s reports,
including, but not limited to the Company’s most recent Annual Report on Form
10-K for the year ended December 31, 2006.
2
Company & Financial Review
Bruce Rounds
Chief Financial Officer
Investment Considerations
Strong and
Experienced
Management
Team
Stable Industry
with Significant
Replacement
Sales
Growing
Revenue and
Increasing Cash
Flows
High Barriers to
Entry
Market Leader
with Significant
Installed Base
Most
Comprehensive
and Innovative
Product Offering
Extensive and
Loyal
Distribution
Network
4
Leading North
American &
European
Brands
The Company


Alliance is the leading commercial laundry equipment
manufacturer in North America

12/31/06 Net Sales and Adjusted EBITDA of $366.1 million and
$63.2 million, respectively

Leading brand recognition in North America (“N.A.”) and Europe

39% N.A. market share

#1 in stand-alone N.A. commercial laundry equipment sales

Only manufacturer to offer full-line of products

Products sold through #1 or #2 distributors / route operators in
over 80% of N.A. markets

Expanded global reach with European acquisition
Alliance continues to deliver stable and predictable cash
flows

Approximately $13 million of net debt reduction in 2006
5
Recent Developments – CLD Acquisition

Alliance Laundry Systems purchased the Commercial Laundry Division
(“CLD”) from Laundry Systems Group (“LSG”) on July 14, 2006

Acquisition strategically enhances geographic scope, expands product offering and
provides control of soft-mount technology

Total acquisition price, net of cash acquired, of $87.0 million(1) includes
transaction and consolidation costs.

CLD stand-alone 2005 revenue and EBITDA of approximately $100.6
million(2) and $10.4 million(2), respectively

Alliance financed the acquisition with a combination of debt and equity
in order to maintain existing leverage levels

$60.0 million add-on to the existing Term Loan Facility, along with a $5.0 million increase
to the Revolving Credit Facility to maintain adequate liquidity
— Maturity and amortization schedules will remain the same as existing

$23.5 million in equity from Ontario Teachers Pension Plan and management

$3.5 million in cash from operations
1. Includes $5.0 million for the consolidation of CLD’s US operations into our existing US operations.
2. Exchange rate of $1.30 to €1.00.
3. Includes existing management of Alliance and CLD.
6
(3)
Leading North American and European Brands
 Largest installed base in North America
 Building brand equity for nearly a century
 Value Added Services




Parts sales
Service support
Financing
Laundromat Design
7
North American Stand Alone Commercial Laundry Market(1)
Alliance Market Share #1
Alliance Market Share #1
Alliance Market Share #1
Multi-Unit Housing
$127 million(1)
Laundromats
$277 million(1)
On-Premise
$128 million(1)
 Apartments  Condominiums
 Universities
 Self-service wash and dry
facilities
 Military Installations
 Approx. 35,000 locations
 Load capacity: up to 18 lbs.
 Load capacity: up to 80 lbs.
________________________
1. Management estimate
8
 Hotels

Hospitals
 Sports Facilities

Prisons
 Load capacity: up to 200 lbs.
Market Leadership
2006 Market Share
(1)
Rank
Market Share(1)
On-Premise Laundries
#1
55%
Multi-Housing Laundries
#1
43%
Laundromats
#1
30%
North America
#1
39%
Market Segment
1. Management estimates.
Leader in North America with greater than 2.0x
market share of nearest competitor
9
Stable Industry
 Industry CAGR of 3.3% from 2001 – 2006
($ in millions)
$600
($ in millions)
$500
$400
$300
$200
$452
$460
$472
$479
2001
2002
2003
2004
$517
$532
2005
2006
$100
$0
________________________
Source: Management estimates.
 Industry sales were modestly affected by the recession in 2001
and 2002
10
Core Growth Strategies

Continue introductions of innovative products and
features with industry-leading performance
Offer Superior Products
and Services
Develop and Strengthen
Key Customer
Relationships
Continue to Improve
Manufacturing Operations

Added soft mount product design proficiency to
our Engineering portfolio

Provide exceptional value-added services such as
technical training, financing and store design

Expanded distribution network and international
coverage with CLD acquisition

Relationships with key customers all exceed ten years

Ongoing enhancements in product quality and design

Consolidating North American manufacturing operations
to leverage efficiencies in procurement, logistics, and
product development and quality

Targeting acquisitions and strategic opportunities that:
Pursuing Strategic
Business Opportunities



11
Expand access to international markets
Increase product differentiation to support
Alliance’s multi-brand strategy
Expand sourcing initiatives – both ways
Comprehensive and Innovative Product Offering

Industry leading
product lines


Innovative product
offerings


12
Innovator in
sophisticated
electronic
controls
45 lb stacked
tumbler dryer
Soft-mount
technology
proficiency

Only manufacturer to
provide full product
line

80 engineers,
designers, and
technicians

R&D spending of $35
million since 2002
Extensive and Loyal Distribution Network

600+ Global Distributors, Importers, and Route Operators
150
Distributors
Laundromat
100 Route
Operators
(Multi-Housing)
Alliance
200
Distributors
On-Premise
Laundry
210
Distributors
International
(U.S. &
European
Operations)
13
Marianna Consolidation
 October 12, 2005 committed a plan to close and consolidate
Marianna design and manufacturing operations into Ripon, WI
 Completion Q3 2006
 Cash costs - $9.4 million
 Estimated annual cost savings in excess of - $4.0 million
Ripon WI
Before
Marianna FL
Marianna Consolidation
>$4.0 million savings
After
Ripon WI
14
U.S. CLD Consolidation
 With the CLD Acquisition, committed to a plan to close and
consolidate all of CLD’s U.S. operations into Ripon, WI
 Estimated completion for consolidation – Q1 2007
 Estimated cash costs - $5.0 million
 $1.8 million spent in 2006
 Estimated annual cost savings in excess of - $4.0 million
 Substantially complete as of January 31, 2007
Ripon WI
Before
CLD Consolidation
>$4.0 million savings
After
Ripon WI
15
Louisville, KY
Fort Mill, SC
Portland, TN
Panama City, FL
(Product Line)
Strong and Experienced Management Team
 Senior management average over 18 years of experience in the
commercial laundry and appliance industries
 Senior management is a significant equity holder
 Retained substantially all of CLD’s European management team
 Management team has consistently improved operations and
executed numerous strategic initiatives
CEO, President
 Consolidation of manufacturing sites and design centers
 Continued innovative product development
 Developing alliances with key customers
Controller
 Manufacturing cost reductions and quality improvement programs
 Successful integration of strategic acquisitions
16
2006 Revenue Mix – Continuing to Diversify
North American CLE Sales by
Channel
By Segment
Consumer
and Other
6%
European
Operations
7%
International
Laundry
Equipment
(US
Operations)
16%
OEM / Dry
Cleaning
5%
On-Premise
23%
Laundromats
47%
North
American
Commercial
Laundry
Equipment
59%
Replacement
Parts (US
Operations)
12%
Revenue
(1)
.
MultiHousing
25%
2005
2006
$317.3
$366.1
Adj. EBITDA(1)
60.4
% Margin
19.0%
63.2
17.9%
2006 includes CLD operations from July 14, 2006 through December 31, 2006 and excludes $5.6
million of deemed EBITDA for period not owned.
17
Commercial Laundry Revenues Are Growing
Historical Revenue
$366.1
$375
$317.3
$300
$254.0
$255.2
$267.6
$281.0
$225
$150
$247.5
$248.0
$261.3
$271.3
2001
2002
2003
2004
$299.5
$345.4
$75
$0
Core Revenue
Home Laundry
2005
Finance Company
 Over 75% of equipment sales are replacement
 CAGR of 6.2% from 2001 – 2006
18
2006
Consistent Adjusted EBITDA
Historical Adjusted EBITDA
($ in millions)
$64.0
45.0%
$63.2
$59.0
$48.0
$58.3
$60.4
$59.5
$53.2
20.9%
30.0%
23.1%
21.8%
$32.0
21.2%
19.0%
17.9%
$16.0
0.0%
2001
2002
2003
Adjusted EBITDA
(1)
(2)
.
15.0%
2004
(2)
2005
2006
(1)
Adjusted EBITDA Margin
2006 includes CLD operations from July 14, 2006 through December 31, 2006 and excludes $5.6 million
of deemed EBITDA for period not owned.
Re-entered lower margin U.S. consumer laundry business in October 2004.
19
Historical Financials & EBITDA Reconciliation
Historical Financials
($ in millions)
Operating Statistics:
Core Revenue
Home Laundry Revenue
Finance Company Revenue
Total Revenue
% Growth
EBITDA (GAAP Reporting)
Adjustments:
Finance Program Adjustments(1)
Other Non-recurring Charges(2)
Other Non-cash Charges(3)
Infrequently Occurring Items
Bain Management Fee
Deemed Prior Qtrs for CLD Acq(4)
Adjusted EBITDA(4)
% Margin
Credit Statistics:
Senior Debt / Adjusted EBITDA
Total Debt / Adjusted EBITDA
2002
2003
2004
2005
2006
$248.0
$0.0
$7.2
$255.2
0.5%
$261.3
$0.0
$6.3
$267.6
4.9%
$271.3
$3.6
$6.1
$281.0
5.0%
$299.5
$8.5
$9.3
$317.3
12.9%
$345.4
$14.4
$6.3
$366.1
15.4%
$40.5
$53.1
$45.1
$13.6
$47.4
1
0.2
0
16.3
1.0
0
$59.0
23.1%
3.4
0.8
0
0
1.0
0
$58.3
21.8%
3.0
4.8
5.6
0
1.0
0
$59.5
21.2%
(1.8)
38.4
10.2
0
0.1
0
$60.4
19.0%
(0.3)
9.4
6.7
0
0
5.6
$68.8
18.8%
3.1x
5.3x
2.7x
5.0x
2.2x
4.5x
2.9x
5.4x
3.2x
5.4x
___________________________
Source: 10Q filings.
1. Reflects the difference between GAAP basis revenues and cash basis revenues related to Company’s off-balance sheet equipment finance program.
2. Include executive retention costs, seller transaction costs incurred with business sale, consolidation costs, loss on foreign exchange hedge, loss on early extinguishment of
debt, and costs of a new asset backed facility.
3. Includes non-cash incentive compensation expense, non-cash write-off of inventory step-up, and non-cash impairment of trademark and customer agreement.
4. 2006 includes $5.6 million which has been deemed to constitute adjusted EBITDA for CLD prior to acquisition on July 14, 2006.
20
Alliance 2006 Quarterly Financials
Quarterly Operating Summary
($ in millions)
Q1
2006 Fiscal Quarter Ended
Q2
Q3
Fiscal Year Ended
Q4
12/31/2006
Net Revenues:
Commercial and Consumer Laundry
Service Parts
Total Revenue
$60.3
$11.2
$71.5
$76.3
$10.7
$87.0
$83.0
$12.1
$95.1
$100.8
$11.7
$112.5
$320.4
$45.7
$366.1
Gross Profit
% Margin
18.5
25.9%
20.1
23.1%
20.9
22.0%
28.2
25.1%
87.7
24.0%
$9.6
N/A
$10.6
12.2%
$10.5
11.0%
$16.7
14.8%
$47.4
12.9%
0.1
0.8
(1.1)
0.0
(0.3)
1.4
3.8
2.9
1.2
9.4
2.7
0.5
2.8
0.7
6.7
2.8
2.8
0.0
0.0
5.6
$16.6
23.2%
$18.5
21.3%
$15.1
15.9%
$18.6
16.5%
$68.8
18.8%
$1.4
$326.9
$1.0
$325.3
$1.6
$379.6
$2.2
$376.1
$6.2
$376.1
EBITDA (GAAP Reporting)
% Margin
Adjustments:
Finance Program(1)
Non-recurring charges
(3)
(2)
Non-cash charges
Deemed prior quarters for CLD Acq.(4)
Adjusted EBITDA(4)
% Margin
Capital Expenditures
Total Debt
___________________________
Source: 10Q filings.
1. Reflects the difference between GAAP basis revenues and cash basis revenues related to Company’s off-balance sheet equipment finance program.
2. Include executive retention costs, seller transaction costs incurred with business sale, consolidation costs, loss on foreign exchange hedge, loss on early extinguishment of debt,
and costs of a new asset backed facility.
3. Includes non-cash incentive compensation expense, non-cash write-off of inventory step-up and non-cash impairment of trademark and customer agreement.
4. Includes $2.8 million increase for Q1 and Q2, which amount has been deemed to constitute the quarterly adjusted EBITDA for CLD.
21
Alliance 2006 Financial Position Summary
Balance Sheet Summary
12/31/2005 12/31/2006
($ in millions)
Balance Sheet Data:
Revolver
Senior Credit Facility
Senior Subordinated Notes
Other Long Term Debt / Cap Lease Oblig.
Unrestricted Cash in Foreign Sub.
Total Consolidated Debt (1)
Adjusted EBITDA(2)
Total Debt / Adjusted EBITDA
Covenant


(1)
(2)
.
$0.0
$177.0
$149.3
$0.0
$0.0
$326.3
$0.0
$224.0
$149.4
$2.7
($3.0)
$373.1
$60.4
$68.8
5.40x
<6.50x
5.42
<5.75x
Approximately $13 million of net debt reduction during 2006 after
considering $60 million of new term debt
2006 Year End Leverage of 5.42x
Total Consolidated Debt as defined in our Senior Credit facility which includes unrestricted cash from
European operations up to $3.0 million.
2006 includes $5.6 million which has been deemed to constitute adjusted EBITDA for CLD prior to
acquisition.
22
Investment Considerations
Strong and
Experienced
Management
Team
Stable Industry
with Significant
Replacement
Sales
Growing
Revenue and
Increasing Cash
Flows
High Barriers to
Entry
Market Leader
with Significant
Installed Base
Most
Comprehensive
and Innovative
Product Offering
Extensive and
Loyal
Distribution
Network
23
Leading Global
Brands