Crane Company · NYSE:CR
Crane — Stifel 2022 Cross Sector Insight Conference
17 slides from Crane's conference presentation, Jun 7, 2022
Slide 1: Stifel 2022 Cross Sector Insight Conference
STIFEL 2022 CROSS SECTOR INSIGHT CONFERENCE Max Mitchell President and Chief Executive Officer Rich Maue Senior Vice President and CFO Jason Feldman Vice President, Investor Relations
Slide 2: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding our intent, belief, or expectations, inclu
Slide 3: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER Readers should carefully review Crane’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane’s Annual Report on Form 10-K for the year ended December 31, 2021 and the other documents Crane and its subsi
Slide 4: Well Positioned for Separation
WELL POSITIONED FOR SEPARATION Payment & Merchandising Aerospace & Electronics Process Flow Technologies Technologies Strong track record of delivering consistent and differentiated execution 4
Slide 5: Two Best-in-Class Industrial Technology Leaders
TWO BEST-IN-CLASS INDUSTRIAL TECHNOLOGY LEADERS ▪ Two global, strategic growth platforms: ▪ Crane Payment Innovations (CPI) and Aerospace & Electronics and Process Flow Crane Currency Technologies ▪ ~$1.4 billion sales in a $7+ billion market ▪ ~$2 billion sales in a $20+ billion market ▪ ~28% pre-c
Slide 6: Strategic Rationale for Separation
STRATEGIC RATIONALE FOR SEPARATION ▪ Deeper operational focus, accountability and flexibility to meet customer requirements ▪ Increased operating and financial flexibility to pursue growth opportunities ▪ Tailored capital allocation strategies ▪ Will attract a shareholder base aligned with each busi
Slide 7: Financial Rationale for Separation
FINANCIAL RATIONALE FOR SEPARATION Valuation Discount vs. Peers Above average EV/EBITDA (Next 12-Months) discount vs. 7.0x industrial peers 6.0x 5.0x 4.0x Long-term average discount 3.0x 2.0x 1.0x 0.0x 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Current valuation does not reflect strength of e
Slide 8: Separating into Two Public Companies
SEPARATING INTO TWO PUBLIC COMPANIES Continued focus on long-term, sustainable value creation for all stakeholders 8
Slide 9: Crane Co. Highlights
CRANE CO. HIGHLIGHTS ▪ Highly-engineered, technology-differentiated 2022G Operating Profit products for large ($20+ billion) and attractive markets Engineered ▪ Respected brands and leadership positions Materials 10% Aerospace & ▪ Mission-critical, high cost of failure applications Electronics 37% w
Slide 10: Highly Attractive Financial and Business Profile
HIGHLY ATTRACTIVE FINANCIAL AND BUSINESS PROFILE ~$2 billion ~40% aftermarket 4-6% core sales sales sales growth ~18.5% pre-corporate Substantial 35%-40% operating Adjusted EBITDA margin** M&A opportunity leverage* (2022G) Expect double-digit core EPS growth with upside from capital deployment * Ope
Slide 11: Crane NXT Highlights
CRANE NXT HIGHLIGHTS • Premier industrial technology business with significant scale, best-in-class margin profile, and strong free cash flow 2021 Sales generation • Broad portfolio and technology leadership for large ($7+ Crane billion) and attractive end markets Currency • Aligned with long-term s
Slide 12: Best-in-Class Financial Profile Merits Premium Valuation
BEST-IN-CLASS FINANCIAL PROFILE MERITS PREMIUM VALUATION 28% pre-corporate 40%+ of sales 4-6% core Adjusted EBITDA are recurring sales growth margin* (2022G) Strong Free Cash Robust Substantial Flow conversion capital return M&A opportunity Strong financial profile consistent with mid-cap industrial
Slide 13: Exciting Value Creation Story Ahead
EXCITING VALUE CREATION STORY AHEAD Continued focus on long-term, sustainable value creation for all stakeholders 13
Slide 14: Non-GAAP Information
NON-GAAP INFORMATION JUNE 7, 2022
Slide 15: Non-GAAP Explanation (1/2)
NON-GAAP EXPLANATION (1/2) Crane Co. reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This presentation includes certain non-GAAP financial measures, including adjusted operating profit, Adjusted EBITDA, pre-corporate Adjusted EBITDA, Adjusted
Slide 16: Non-GAAP Explanation (2/2)
NON-GAAP EXPLANATION (2/2) We believe that certain other non-GAAP measures provides useful information to investors in their evaluation of the prospects and valuation for post-separation Crane Co. and Crane NXT: ▪ “Pre-corporate Adjusted EBITDA” and “Pre-corporate Adjusted EBITDA margin” provide use
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