Annual Investor Day. February 28, 2019

Transcription

1 Annual Investor Day February 28, 2019

2 2019 AGENDA There Will Be a Brief Q&A Period after Each Business Presentation TIME TOPIC PRESENTER 8:30 8:35 Welcome, Introductions Jason Feldman 8:35 9:00 Strategic Overview Max Mitchell 9:00 9:20 Financial Overview Rich Maue 9:20 9:50 Fluid Handling Brad Ellis 9:50 10:05 BREAK 10:05 10:45 Payment & Merchandising Technologies Louis Pinkham 10:45 11:15 Aerospace & Electronics Steve Zimmerman 11:15 11:45 Summary and Q&A All 2

3 FORWARD-LOOKING STATEMENTS DISCLAIMER The information in this presentation includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of Forward-looking statements are statements other than historical information or statements about our current condition. You can identify forward-looking statements by the use of terms such as believes, contemplates, expects, may, could, should, would, or anticipates, other similar phrases, or the negatives of these terms. We have based the forward-looking statements relating to our operations on our current expectations, estimates and projections about us and the markets we serve. We caution you that these statements are not guarantees of future performance and involve risks and uncertainties. In addition, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors, including those detailed on Page 1 of our Annual Report on Form 10-K for 2018 and in our subsequent disclosures filed with the Securities and Exchange Commission. 3

4 »

5 Crane Co. Strategic Overview Max Mitchell, President and Chief Executive Officer

6 MARCH 1, 2018 MESSAGE Executing Well in Improving Markets Crane Currency Contributes $1/Share by 2021 Tax Reform Reading Through in 2020 Accelerating Growth Investments Repositioning Adds $0.35/Share by % Increase in Dividend Substantial Flexibility for Capital Deployment 6

7 FEBRUARY 28, 2019 MESSAGE Executing Well in Improving Markets Crane Currency Contributes $1/Share by 2021 Tax Reform Reading Through in 2020 Accelerating Growth Investments Repositioning Adds $0.35/Share by % 11% Increase in Dividend Substantial Flexibility for Capital Deployment 7

8 FULL-YEAR 2018 EARNINGS SUMMARY $ Millions except per-share amounts FY 2018 FY 2017 Change Sales $3,346 $2, % Operating Profit* $506 $ % Operating Margin* 15.1% 15.2% (10 bps) Earnings per Share* $5.99 $ % Free Cash Flow** $305 $ %»» RECORD SALES, EPS* AND FREE CASH FLOW* 8 * Excludes Special Items. Please see non-gaap Financial Measures tables for details. ** Free Cash Flow is defined as Cash Provided by Operating Activities, less Capital Spending. Please see non-gaap Financial Measures tables for details.

9 R.T. CRANE RESOLUTION I am resolved to conduct my business in the strictest honesty and fairness; to avoid all deception and trickery; to deal fairly with both customers and competitors; to be liberal and just toward employees; and to put my whole mind upon the business. Resolution Made by Richard Teller Crane Founder of Crane Co., on July 4,

10 PHILANTHROPY 10

11 PHILANTHROPY 11

12 PHILANTHROPY 12

13 PHILANTHROPY 13

14 14

15 MANAGEMENT BY CADENCE 15

16

17

18 Profitable Growth Customer Satisfaction

19 Talent Kaizen & Projects Process Definition & System Control

20 Talent Kaizen & Projects Respect for People VARIATION OVER BURDEN WASTE Process Definition & System Control

21 Profitable Growth Customer Satisfaction

22 CBS DRIVES MARGIN IMPROVEMENT Adjusted Operating Margin* Since CBS Formalized 18.0% 16.0% 14.0% 12.0% 10.0% 9.8% 10.4% 10.8% 11.2% 10.2% 9.6% 11.2% 12.1% 13.2% 14.4% 14.0% 13.7% 14.0% 14.7% 14.5% 15.8% 8.0% 6.0% 4.0% 2.0% 0.0% G* *Excludes Special Items. Please see non-gaap Financial Measures tables for details. Note that adjusted margins prior to 2010 do not reflect the recent pension accounting change. 22

23 CBS DRIVES FREE CASH FLOW $ Millions Free Cash Flow* $400 $350 $ % CAGR $267 $269 $305 $350 $250 $200 $205 $210 $220 $189 $150 $100 $113 $115 $50 $ G * Free Cash Flow is defined as Cash Provided by Operating Activities less Capital Spending. Please see non-gaap Financial Measures tables for details. 23

24 CBS HELPS MANAGE PROJECTS 24

25 CAPITAL DEPLOYMENT POTENTIAL $2.5 $3.0 Billion Available from »» Incremental Debt Capacity Repatriated Cash Operating Cash Flow Sources ADDITIONAL VALUE CREATION POTENTIAL M&A and/or Repurchases Dividends Dividends Capital Expenditures Capital Expenditures Uses ~$1.5B to $2B Available for M&A and/or Repurchases while Retaining Credit Metrics Consistent with Existing Investment Grade Rating 25

26 2019 AGENDA There Will Be a Brief Q&A Period after Each Business Presentation TIME TOPIC PRESENTER 8:30 8:35 Welcome, Introductions Jason Feldman 8:35 9:00 Strategic Overview Max Mitchell 9:00 9:20 Financial Overview Rich Maue 9:20 9:50 Fluid Handling Brad Ellis 9:50 10:05 BREAK 10:05 10:45 Payment & Merchandising Technologies Louis Pinkham 10:45 11:15 Aerospace & Electronics Steve Zimmerman 11:15 11:45 Summary and Q&A All 26

27 »