Itt Inc. · NYSE:ITT
Itt — Investor Day (October 2011)
94 slides from Itt's investor day presentation, Oct 13, 2011
Slide 1: Engineered for Growth: The New ITT Inaugural Investor & Analyst Day
Engineered for Growth The New ITT Inaugural Investor & Analyst Day October 13, 2011
Slide 2: Today's Agenda
Today’s Agenda 9:00 – 9:40 The New ITT Denise Ramos 9:40 – 10:00 Industrial Process Robert Pagano Jr. 10:00 – 10:20 Motion Technologies Andrew Jones 10:20 – 10:40 Break – Product Displays 10:40 – 11:00 Interconnect Solutions William Taylor 11:00 – 11:20 Control Technologies Munish Nanda 11:20 – 11:4
Slide 3: Safe Harbor
Safe Harbor Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 (the “Act”): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995.
Slide 4: Introducing The New ITT
1. Introducing The New ITT • Profitable Growth Drivers • Repeatable Growth Model 2. Operating Segments 3. Financial Overview 4. Closing Remarks and Q&A
Slide 5: The New ITT
The New ITT We Deliver Highly Engineered & Critical Applications We Are Leaders in Attractive & Defensible Niches We Are Global & Highly Diversified We Have Established Brands & Channels We Have a Proven Management System & Leadership Team
Slide 6: ITT Value Defined
ITT Value Defined Attractive Niches Robust Growth Profile • Highly Engineered • Balanced Geographies & Cycles Critical & Harsh Applications Customized Solutions • Attractive End-Markets Oil & Gas, Aerospace, Power, Rail, Petrochem, Industrial • Recognized Brands • Macro Trend Driven • Strong Channel
Slide 7: Diversified & Balanced Revenue Profile
Diversified & Balanced Revenue Profile Uniquely Strong Foundation for Growth
Slide 8: Our Applications Highly Engineered & Critical
Our Applications Highly Engineered & Critical
Slide 9: Introducing The New ITT
1. Introducing The New ITT • Profitable Growth Drivers • Repeatable Growth Model 2. Operating Segments 3. Financial Overview 4. Closing Remarks and Q&A
Slide 10: Profitable Growth Drivers
Profitable Growth Drivers • Focused Emerging Market Expansion • Aftermarket Capture • Investment in Technology & Innovation • Premier Customer Experience • Margin Expansion Through Operational Excellence • Effective Capital Deployment to Drive Organic & Inorganic Growth
Slide 11: Organic Revenue Growth History
Organic Revenue Growth History 4 Years Outperformed Peers* +5% Annual Average Organic Growth +9% YTD 6/30/2011 Organic Growth ITT Management System Drives Sustainable Growth * Peers include AME, ATU, CFX, CR, CSL, DOV, ETN, FLS, IEX, PH, ROP, SPW For non-GAAP reconciliations, refer to appendix and w
Slide 12: Drivers of Future Revenue Growth
Drivers of Future Revenue Growth Emerging Resource Scarcity Macro Markets Trends Growing Large-Scale Energy Creation & Middle Urbanization Efficiency Class Auto???Strong Macro Trend Alignment +35% Emerging Market Growth Aftermarket Expansion +30% New Products Growth Targeted Acquisitions in Fragment
Slide 13: Emerging Market Growth Drivers
Emerging Market Growth Drivers Competitive Advantages • Highly Respected ITT Brand • Strong Manufacturing Footprint • Established Low Cost Sourcing • Strategic Global Customer Focus • Experienced Leadership Growth Opportunities • Energy & Mining Demand • Auto Demand in China • Increased Air Travel •
Slide 14: Focused Emerging Market Growth
Focused Emerging Market Growth Strategic Actions & Investments New R&D Capabilities Manufacturing & Assembly Expanded Selling Capabilities Global Strategic Account Focus
Slide 15: Aftermarket Expansion Strategy
Aftermarket Expansion Strategy 30% Aftermarket Revenue (2011) • Highly Profitable • Recurring Revenue Stream Aftermarket Expansion Areas of Focus Recent Facilities Czech Republic Expansion - Rail & Auto Wuxi, China Build-Out Brazil Saudi Arabia Advanced Monitoring & Controls Driving Plant Performanc
Slide 16: ITT Innovation
ITT Innovation +9% Investment CAGR ~1.3X Peer Average R&D% Revenue +30% New Products & Technologies (2011-2014) Expanding R&D Tech Centers Oil & Gas Energy & Auto Aerospace General Mining Friction Tech Industrial • Process Barrel • Slurry Pump • Global • Advanced • Vibration Pumps Portfolio Formulat
Slide 17: Premier Customer Experience
Premier Customer Experience Customer Driven Processes • Global Strategic Account Initiatives • Advanced Order Configuration Integrated Processes • Supply Chain & Production Processes • Global Strategic Sourcing Driven Performance • Measure Quality and On-Time Delivery • Improves Working Capital and
Slide 18: Long-Term Customer Relationships
Long-Term Customer Relationships
Slide 19: Future Margin Drivers
Future Margin Drivers ITT Management System Premier Customer Experience Value Based Commercial Excellence Lean Six Sigma Low Cost Region Sourcing Cost Revolution Technology & Innovation
Slide 20: Financial Strength
Financial Strength Post-Spin Capital Allocation High Growth Industries Net Legacy Liabilities Strong Cash Flow Spin-Related Funding No Long-term Debt Strong Balance Sheet • >$600M Cash (Mostly International) • No Long-Term Debt • Investment Grade • 4-Year $500 Million Revolver Focused on Cash Flow G
Slide 21: Premier Metric Targets
Premier Metric Targets Long-Term Financial Metrics • Organic Revenue Growth of 5 to 7% • Annual Operating EBIT Margin Growth of 50 to 70 bps • Free Cash Flow Conversion >105% • EPS Growth of 10 to 15%
Slide 22: Introducing The New ITT
1. Introducing The New ITT • Profitable Growth Drivers • Repeatable Growth Model 2. Operating Segments 3. Financial Overview 4. Closing Remarks and Q&A
Slide 23: ITT Repeatable Growth Model
ITT Repeatable Growth Model Profitable Growth Engine
Slide 24: ITT Repeatable Growth Stories
ITT Repeatable Growth Stories 5 Strategic Account Wins in Oil & Gas in Last 2 Years Ford’s #1 Global Friction Supplier Major Connector Supplier to High-Speed Rail Content on Every Commercial Boeing Aircraft Platform
Slide 25: Powerhouse Brands
Powerhouse Brands » Fart < ITT Kong itt
Slide 26: ITT Management System
ITT Management System Data Driven Decision Making Profitable Resource Operational Leadership & Growth Optimization Excellence Learning • Value-Based • Premier Resource • Value-Based Lean • Value-Based Management Management Six-Sigma Leadership Development • Value-Based Product • Portfolio/Capital •
Slide 27: Leadership, Experience and Vision
Leadership, Experience and Vision Board of Directors* Frank T. MacInnis – ITT Non-Executive Chairman; Chairman and Former Chief Executive Officer, EMCOR Group, Inc. An ITT director since 2001 Christina A. Gold – Former Chief Executive Officer, The Western Union Company An ITT director since 1997 Pet
Slide 28: A Compelling Value Proposition That Delivers Results
A Compelling Value Proposition That Delivers Results
Slide 29: Total Value Creation
Total Value Creation Profitable Growth Drivers • Focused Emerging Market Expansion • Aftermarket Capture • Investment in Technology & Innovation • Premier Customer Experience • Margin Expansion Through Operational Excellence • Effective Capital Deployment to Drive Organic & Inorganic Growth Premier
Slide 30: Introducing The New ITT
1. Introducing The New ITT • Profitable Growth Drivers • Operating Model 2. Operating Segments 3. Financial Overview 4. Closing Remarks and Q&A
Slide 31: Industrial Process – Robert Pagano Jr.
Industrial Process Robert Pagano Jr.
Slide 32: Industrial Process Overview
Industrial Process Overview • Goulds Pumps Brand & Reputation • Broad Portfolio of Process Pumps • 40% Aftermarket Revenue • North American Leader in Chemical & General Industry Markets • Global Footprint • Focus on Total Cost of Ownership
Slide 33: Industrial Process Repeatable Growth Model
Industrial Process Repeatable Growth Model Value Creation New Projects Populate Long-Term Installed Base Installed Base Drives High-Margin Aftermarket Proven Reliability and Service Paves Way for New Project Wins
Slide 34: Industrial Process Growth Drivers
Industrial Process Growth Drivers Enduring Markets; Resource Scarcity and Sustainability • Oil & Gas Market • Mining Market Emerging Market Growing Middle Class & Infrastructure Expansion Innovation & Technology • Energy Efficiency Industrial Process End Markets (2010 Data) Market Growth Focus (2011
Slide 35: Industrial Process Emerging Market Growth
Industrial Process Emerging Market Growth Oil & Gas • Targeted Growth Brazil Expansion Middle East / Asia Operations & Sales Support • Portfolio Expansion Mining • Expand Market Presence Latin America Australia • Portfolio Expansion Grow Strategic Account Base • Focus on Key Global Customers Afterma
Slide 36: Industrial Process Innovation & Technology
Industrial Process Innovation & Technology Driving Core Strengths into Key Vertical Markets 3
Slide 37: Industrial Process – Oil & Gas Growth Story
Industrial Process – Oil & Gas Growth Story O&G Initiative Begins • Engineering Core Strengthened • Hydraulic Portfolio Expanded • High Energy Test Facility Built Packaging Footprint in Saudi Arabia Strategic Agreement with Chevron Brazil Footprint Acquired 2011 Brazil Growth Expansion Strategic Agr
Slide 38: Industrial Process Aftermarket Innovation
Industrial Process Aftermarket Innovation Total Cost of Ownership Plant Performance Services Monitoring & Controls • Initial Cost Only 10% of Life-Time of Equipment • Energy Performance Services • Upgrade Engineering • ProActivity • PumpSmart • iAlert • ProSmart
Slide 39: Industrial Process Recap
Industrial Process Recap Competitive Advantages • Goulds Pumps Brand & Reputation • Broad Portfolio of Process Pumps • Strong North America Core Base • Global Footprint Value Opportunities • Trusted Partner with Customers Creation • Oil & Gas in Emerging Markets • Mining to Support Emerging Markets
Slide 40: Motion Technologies – Andrew Jones
Motion Technologies Andrew Jones
Slide 41: Motion Technologies Overview
Motion Technologies Overview Competitive Advantages • Material Science Expertise • Strong Brand Recognition • Efficient Production Capability • 45% Aftermarket Revenue • Low Cost Region Footprint • Reputation for Quality
Slide 42: Motion Technologies Repeatable Growth Model
Motion Technologies Repeatable Growth Model Value Creation Long-Term OEM Production Platform Wins High-Margin OES & Aftermarket for Each Platform Reputation & Performance Pave Way for New Platform Wins
Slide 43: Motion Technologies Strategic Growth
Motion Technologies Strategic Growth Private Transportation • Global Expansion Drive Technology & Innovation Expand in Emerging Markets • Service Global Customers in China Drive North American Share Gains • Expand Premium Aftermarket Leverage Global Footprint New Product Offerings Public Transportat
Slide 44: Motion Technologies Emerging Markets
Motion Technologies Emerging Markets China Automotive — Fastest Growing Auto Market • Expand Wuxi, China Facility to Produce for Global Customers • Produce for US Export • Establish Technical Center for Local Customer Needs Rail & Bus — Growth Driven by Urbanization • Leverage Wuxi, China Facility •
Slide 45: Motion Technologies Strategic Account Focus
Motion Technologies Strategic Account Focus Current Platforms Strategic Accounts Drive Global Growth Motion Technologies Production Efficiency Best-in-class Manufacturing Technologies Integrated Process Engineering Zero Defect – Highest Quality Policy • In-line, Automated Control Systems Ensure the
Slide 46: Motion Technologies Technology & Innovation
Motion Technologies Technology & Innovation • Zero-Copper Pads • Biodegradable Oils Implementation • Organic Fibers & Recycled Material Science • Heat Management & Weight Reduction for Dampening Solutions • Electric Parking Brake Material Development • Design to Cost Implementation • Design to Cost
Slide 47: Motion Technologies — Friction Technology Story
Motion Technologies — Friction Technology Story Technology Drives 4X Market Growth
Slide 48: Motion Technologies Recap
Motion Technologies Recap Competitive Advantages • Material Science Expertise • Efficient Production Capability & Operational Excellence • Low Cost Region Footprint • Strong Brand Recognition Value Opportunities • Reputation for Quality Creation • Global Strategic • Process and Product Customers in
Slide 49: Interconnect Solutions – William Taylor
Interconnect Solutions William Taylor
Slide 50: Interconnect Solutions Overview
Interconnect Solutions Overview Competitive Advantages • Strong Cannon Brand • Engineering Capability to Configure Technology Building Blocks into Customer Solutions • Broad Product Portfolio • Global Manufacturing Footprint
Slide 51: Interconnect Solutions Repeatable Growth Model
Interconnect Solutions Repeatable Growth Model Value Creation Ability to Nimbly Develop Harsh Environment Solutions New Long-Term Production Platform Wins Reputation & Performance Pave Way for New Platform Wins
Slide 52: Interconnect Solutions Growth Drivers
Interconnect Solutions Growth Drivers Macro Trend Alignment Innovation & Technology • Growing Population • +13% CAGR in New Product Revenue • Aging Infrastructure Geographic Expansion • Energy Creation & Efficiency • +19% CAGR in Emerging Markets
Slide 53: Interconnect Solutions Strategic Growth
Interconnect Solutions Strategic Growth Extend Harsh Environment Leadership • Expand Portfolio & Platform Capabilities • Further Penetrate Oil & Gas • Leverage Leading Brands • Significant Emerging Market Expansion Opportunities Target Specialized Connector Applications • Handheld Market Expansion •
Slide 54: Interconnect Solutions Emerging Market Growth
Interconnect Solutions Emerging Market Growth China Rail, Handheld Medical and General Industrial Markets • Leverage Established World-Class Shenzhen Facility • Expand Local Engineering and Technical Expertise Middle East Oil & Gas • Leverage Existing Robust Distribution Network • Leverage Footprint
Slide 55: Interconnect Solutions Innovation & Technology
Interconnect Solutions Innovation & Technology Composite Materials Plating Chemistry Coupling Mechanisms Contact Geometry Sealing Filtering Driving Core Strengths into Key Vertical Markets 5
Slide 56: Interconnect Solutions – Electric Vehicle Story
Interconnect Solutions – Electric Vehicle Story EV Initiative Begins ICS Develops ICS to Develop 2nd Generation • Identified Attractive Growth USA Standard Coupler – Lower cost & Segment Charge Coupler improved ergonomics • Manufacturing in ICS Qualified at Shenzhen,China 75Amps for high power charg
Slide 57: Interconnect Solutions Recap
Interconnect Solutions Recap Competitive Advantages • Extensive Technology Portfolio and Broad Product Base • Macro Trend Driven Growth Opportunities • Premier Brands Value • Significant Emerging • Global Engineering and Creation Market Opportunities Manufacturing Footprint • Expand Harsh Environmen
Slide 58: Control Technologies – Munish Nanda
Control Technologies Munish Nanda
Slide 59: Control Technologies Overview
Control Technologies Overview Competitive Advantages • Market Leading Technologies • Application Engineering Expertise • 30% Aftermarket Revenue • Strong Global Relationships • Extensive Portfolio of Qualified Products • Mission Critical Applications Throughout Product Life-Cycle
Slide 60: Control Technologies Repeatable Growth Model
Control Technologies Repeatable Growth Model Value Creation Differentiated Engineering Drives New Wins New OEM Long-Term Production Wins for Entire Product Life-Cycle Long-Term Aftermarket Produces High-Margins
Slide 61: Control Technologies Growth Drivers
Control Technologies Growth Drivers Emerging Market Macro Trend Alignment Aftermarket Expansion • Increased Air Travel • Aerospace • Growing Population • Energy Absorption • Large-Scale Urbanization • Energy Efficiency
Slide 62: Control Technologies Strategic Growth
Control Technologies Strategic Growth Expand Aerospace Leadership • Actively Grow Aftermarket • Invest in Technologies & Innovation to Win Next Generation Applications Smart Actuation Noise Systems Engineering • Leverage Customer & Platform Relationships • Grow with Customer Base Serving Emerging Ma
Slide 63: Control Technologies Emerging Market Growth
Control Technologies Emerging Market Growth China Aerospace & Energy Absorption • Leverage Wuxi Facility for Localized Products • Leverage Distribution Network • Further Expand Relationship with COMAC (Aero) India Power Generation & Energy Absorption • Leverage Expanded Distribution Network • Locali
Slide 64: Control Technologies Technology & Innovation
Control Technologies Technology & Innovation Industrial Aerospace • Leverage Standard Platforms for • Smart Actuation Platforms Customized Solutions • Light-Weight Materials • Localize Products & Components • Plug & Play Technology • Next-Gen Seat Actuation System • Web-Based Product Configurator •
Slide 65: Control Technologies Industrial Energy Absorption Growth Story
Control Technologies Industrial Energy Absorption Growth Story Highly Engineered Solutions
Slide 66: Control Technologies Noise Isolation Growth Story
Control Technologies Noise Isolation Growth Story Proprietary, Market Leading Solutions
Slide 67: Control Technologies Aerospace Industry Profile
Control Technologies Aerospace Industry Profile Airlines Airframers Tier 1 Systems Suppliers Subsystem Components Suppliers Component Suppliers
Slide 68: Control Technologies Recap
Control Technologies Recap Competitive Advantages • Market Leading Technologies • Application Engineering Expertise • Strong Global Relationships • Extensive Portfolio of Qualified Products Value • Strong Aerospace Aftermarket Opportunities • Mission Critical Applications Creation • Further Penetrat
Slide 69: Introducing The New ITT
1. Introducing The New ITT • Profitable Growth Drivers • Repeatable Growth Model 2. Operating Segments 3. Financial Overview 4. Closing Remarks and Q&A
Slide 70: Financial Overview – Thomas Scalera
Financial Overview Thomas Scalera
Slide 71: Repeatable Finance Model
Repeatable Finance Model Sustainable Value Creation
Slide 72: Financial Overview
Financial Overview ITT Management System • Data Driven Decision Making • Focused Enterprise Risk Management Liquidity and Cash Management • Maintain Investment Grade • Strong Balance Sheet • 4-Year $500 Million Revolver • Dividend Policy In-Line with Growth-Oriented Peers Differentiated Investments
Slide 73: Revenue Growth
Revenue Growth • ~5% Total Revenue CAGR (‘07-’11) • Significant Emerging Market Growth • +9% YTD 6/30/2011 Organic Growth • Enduring Demand Drivers • Premier Revenue Performance • Balanced Cyclicality
Slide 74: Segment Operating Income
Segment Operating Income • Focused Deployment of • Operational Excellence ITT Management System • Leverage Low Cost Region Footprint • Premier Customer Experience • Cost Revolution • Value Based Commercial Excellence
Slide 75: Operating EBITDA
Operating EBITDA • Focused Working Capital Management • Improved Velocity of Value Creation • Leveraging World Class Shared Services • Disciplined Investments
Slide 76: Net Asbestos Financial Overview
Net Asbestos Financial Overview Balance Sheet 9/30/2011 Gross Liability $1,659 Asset $ (952) Net Liability $707 Preliminary After-Tax Financial Impacts** YTD 2008 2009 2010 2011 Net-Asbestos Provision $9 $17 $34 $30 Net-Asbestos Remeasurement — 131 205 25 Total Net Asbestos Expense $9 $148 $239 $55
Slide 77: Long-Term Capital Deployment
Long-Term Capital Deployment Strategic Fit • Sustainable Value Creation • Close to Core & Defensible Niches • Geographic Expansion • Key Technologies Value Creation Financial Criteria • Strong ROIC • Reasonable Payback Period • Returns > Risk Adjusted Cost of Capital • EVA + Positive in 3 to 4 Years
Slide 78: Differentiated Future Investments
Differentiated Future Investments Emerging Markets • China Auto R&D • China Auto Production Aftermarket Capture • Czech Republic Expansion Auto & Rail Energy & Mining • Korea Expansion • Saudi and Brazil Footprint Productivity • Connector Component In-sourcing Aerospace • Localized Emerging Market C
Slide 79: M&A Strategy
M&A Strategy Criteria • Meets Financial Criteria • Accretive to EPS in First Year • Close-to-Core & Defensible Niches • Geographic Expansion • Fills Technology Gaps Target Revenues $15M-$50M Team Capabilities • +$10B in Successful Deals • 16 Years = Average Experience • Proven Integration Plans • Ex
Slide 80: Premier Metric Targets
Premier Metric Targets Long-Term Financial Metrics • Organic Revenue Growth of 5 to 7% • Annual Operating EBIT Margin Growth of 50 to 70 bps • Free Cash Flow Conversion >105% • EPS Growth of 10 to 15% Sustainable Value Creation
Slide 81: Financial Recap
Financial Recap Leverage Proven Management System & Team • Maintain Strong Corporate Governance Practices & Processes • Active Risk Management Effective Separation of Integrated Activities Target Margin Expansion and Cash Flow Generation Differentiated Organic Investments Focused M&A in Fragmented M
Slide 82: Introducing The New ITT
1. Introducing The New ITT • Profitable Growth Drivers • Repeatable Growth Model 2. Operating Segments 3. Financial Overview 4. Closing Remarks and Q&A
Slide 83: Appendix: Leadership, Experience and Vision
Appendix Leadership, Experience and Vision Denise Ramos – CEO and President Denise joined ITT in 2007 from Furniture Brands. She brings a broad range of financial experience, having held executive positions in the consumer and oil industries. In her current role as CFO, she is responsible for all as
Slide 84: Key Performance Indicators and Non-GAAP Measures
Key Performance Indicators and Non-GAAP Measures Management reviews key performance metrics including sales and revenues, segment operating income and margins, earnings per share, orders growth, and backlog, among others, in connection with managing the business. In addition, we consider the followi
Slide 85: Non-GAAP Reconciliation: Pro Forma Revenue vs. Organic Revenue
New ITT Co Non-GAAP Reconciliation Pro Forma Revenue vs. Organic Revenue Full Year 2007-2010 (unaudited) ($ Millions) (Pro Forma Revenue) (As Adjusted — Organic) (A) (B) (C) (D) (E) = B+C+D (F) = E / A Acquisition / Revenue Revenue % Change Divestitures FX Contribution Change % Change 2010 12M 2010
Slide 86: Non-GAAP Reconciliation: Pro Forma Revenue and Adjusted Segment Operating Income
New ITTCo Non-GAAP Reconciliation Pro Forma Revenue and Adjusted Segment Operating Income and Margin Full Year 2007 — 2010 / YTD Q2 2011 ($ Millions — Unaudited) YTD Q2 2007 2008 2009 2010 2011 Revenue Total Segment Revenues $1,785 $2,153 $1,794 $1,930 $1,095 Less: Intercompany Eliminations (17) (21
Slide 87: Non-GAAP Reconciliation: Adjusted Segment Operating Income to Operating EBIT
Non-GAAP Reconciliation Adjusted Segment Operating Income to Operating EBIT Full Year 2007 - 2010 / Q2 YTD 2011 ($ Millions — Unaudited) 2007 2008 2009 2010 2011 Total Adjusted Segment Operating Income $266 $332 $225 $239 $160 Less Corporate Costs after Adjustments (a): Corporate G&A 37 45 55 36 19
Slide 88: Non-GAAP Reconciliation: Operating EBIT, Operating EBITDA and Margin
Non-GAAP Reconciliation Operating EBIT, Operating EBITDA and Margin Full Year 2007 — 2010 / Q2 YTD 2011 ($ Millions — Unaudited) YTD Q2 2007 2008 2009 2010 2011 Operating Income GAAP $194 $206 $ (124) $ (191) $41 Adjustments Restructuring and Realignment $11 $48 $48 $4 $2 Pro Forma (a) — 7 6 5 2 Inf
Slide 89: Non-GAAP Reconciliation: Adjusted Segment Operating Income and Margin
New ITTCo Non-GAAP Reconciliation Adjusted Segment Operating Income and Margin Full Year 2007 — 2010 / YTD Q2 2011 ($ Millions — Unaudited) YTD Q2 2007 2008 2009 2010 2011 Industrial Process Operating Income GAAP Operating Income $102 $114 $72 $79 $51 Adjustments Restucturing and Realignment 2 19 16
Slide 90: Non-GAAP Reconciliation: Adjusted Segment Operating Income and Margin
New ITTCo Non-GAAP Reconciliation Adjusted Segment Operating Income and Margin Full Year 2007 - 2010 / YTD Q2 2011 ($ Millions — Unaudited) 2007 2008 2009 2010 2011 Interconnect Solutions Operating Income GAAP Operating Income $34 $42 $19 $37 $27 Adjustments Restucturing and Realignment 7 8 7 1 -Pro
Slide 91: Asbestos — Financial Impacts on Continuing Operations
Asbestos — Financial Impacts on Continuing Operations Updated Through 9/30/11 ($ Millions — Unaudited) YTD Q3 2009 2010 2011* As Reported Net Annual Asbestos Remeasurement (a) $210 $330 $41 Net Asbestos Provision (b) 28 55 48 Total Net Asbestos Expense $238 $385 $89 Adjustm djust ent — Tax Effect Ne
Slide 92: Non-GAAP Reconciliation: Adjusted Segment Operating Income and Margin
itt Now ITTCo Non-GAAP Reconciliation Adjusted Segment Operating Income and Margin Full Year 2007 - 2010/ YTD G2 2011 (6 Millions - Unaudited) 2010 dustrial Process. Operating Income ‘GAAP Operating Income Ss ms ms mS 0S 5 Adjustments Restucturing and Realignment 2 19 16 +e ro Forma (a) 4 4 3 1 Tota
Slide 93: Non-GAAP Reconciliation: Adjusted Segment Operating Income and Margin
itt Now ITTCo Non-GAAP Reconciliation Adjusted Segment Operating Income and Margin Full Year 2007 - 2010 / YTD 2 2011 (6 Millions - Unaudited) 2010 terconnect Solution Operating Income ‘GAAP Operating Income Ss us 2S 098 7S @ Adjustments Restucturing and Realignment 7 8 7 +e ro Forma (a) 3 2 2 Total
Slide 94: Asbestos - Financial Impacts on Continuing Operations
‘Asbestos - Financial Impacts on Continuing Operations Updated Through 9/30/11 {S Millions - Unaudited) itt [As Reported [Nat Annual Asbestos Remeasurement (a) $208 [Nat Asbestos Provision (b) 28 “otal Net Asbestos Expense ar ‘Adjustmant -Tax Effoct ‘Not Annual Asbestos Remeasurement ss [Not Asbosto