INVESTOR DAY 2018 MARCH 1, 2018

Transcription

1 INVESTOR DAY 2018 MARCH 1,

2 2018 Agenda 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 Brendan Curran 11:15-11:45 Summary and Q&A All There will be a Brief Q&A Period After Each Business Presentation 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 most recent Annual Report on Form 10-K and in our subsequent disclosures filed with the Securities and Exchange Commission. 3

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5 CRANE CO. STRATEGIC OVERVIEW MAX MITCHELL PRESIDENT AND CHIEF EXECUTIVE OFFICER 5

6 2017 Operating Results ($ Millions, Except per Share Amounts) 2017 Change Net Sales $2,786 +1% Operating Profit* $423 +6% Operating Margin* 15.2% +70 bps EPS* $ % Free Cash Flow** $269 +1% 2018 Adjusted EPS* Guidance $5.35-$5.55: +20% from 2017 * 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. 6

7 Multi-Year Outlook: Layers of Growth ~$7.50-$8.00 $0.35 $0.50 $1.00 Discrete Items Repositioning Tax Reform $4.53 Crane Currency 2017 Base EPS* and Core Growth Additional Upside from $2B+ Capital Allocation * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 7

8 Fluid Handling Adjusted Segment Margin %* and Sales ($M) 16% Global Recession 1,400 12% Oil Price Weakness 1,050 8% 4% G Sales Margins Margins Sales 700 Consistent Execution and Improving Markets * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 8

9 Payment & Merchandising Technologies Adjusted Segment Margin* Improved ~1900 BPS 21% 14% 7% Margin Improvement with Strong Organic Growth * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 9

10 Aerospace & Electronics Segment Sales ($M) $1,200 $1,100 $1,125 $1,000 $900 $945 $800 $700 $723 $600 $ G 2019E 2020E 2021E 2022E 2023E 2024E 2025E 2026E 2027E Actuals 3% CAGR 5% CAGR Clear Line-of-Sight to Long-Term Revenue Growth 10

11 Engineered Materials Adjusted Segment Margin* RV Wholesale Shipments (000s)** 25.0% % 19.0% 19.1% 18.0% % 13.9% 13.5% 13.0% 14.8% 14.5% % 11.2% % % Solid Execution Supported by Solid End Markets * Excludes Special Items. Please see non-gaap Financial Measures tables. ** Source: RVIA 11

12 Crane Currency 12

13 Cash Cycle Commercial Banks Banknote Production Central Banks Cash Centers Retailers Public (Individuals & Corporations) Foreign Government Reserves / Vaults Retail Banks Produce and Supply Store, Distribute, Maintain, Destroy Handle, Process, Store and Transact Cash 13

14 Crane s Productivity Framework Strategic Planning Operating Plan Funnel Management Productivity People Material Other D&I Projects and Kaizen Measure & Report Carefully Balancing Growth and Margins 14

15 Malta Facility 15

16 Advanced Technology 16

17 Path to $1.00 of EPS Accretion by 2021 $1.00 Malta $0.15 Growth Productivity 2018G* 2021F * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 17

18 Tax Reform Earnings Benefit Annual EPS Benefit (Net of Growth Investments) $0.50 $0.35 $ Enabling $30 Million of Accelerated Growth Investments 18

19 Repositioning for the Future Cumulative EPS* Benefit $0.35 $0.20 $ * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 19

20 Capital Allocation Flexibility Free Cash Flow* $300 $ % CAGR $200 $150 $100 $50 $ $1.5B to $2B Available for M&A and/or Repurchases Through 2021 * Free Cash Flow is defined as Cash Provided by Operating Activities less Capital Spending. Please see non-gaap Financial Measures tables for details. 20

21 R.T. Crane Resolution Resolution Made by Richard Teller Crane, Founder of Crane Co., on July 4, 1855 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. 21

22 Management by Cadence 22

23 2018 Agenda 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 Brendan Curran 11:15-11:45 Summary and Q&A All There will be a Brief Q&A Period After Each Business Presentation 23

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