ITT Inc. · NYSE:ITT

ITT — Citigroup's 2008 Global Industrial Manufacturing Conference

17 slides from ITT's conference presentation, Mar 5, 2008

  1. Slide 1: Citigroup's 2008 Global Industrial Manufacturing Conference

    Steve Loranger Chairman, President and Chief Executive Officer Citigroup’s 2008 Global Industrial Manufacturing Conference

  2. Slide 2: 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 Act. These forward-looking statements include

  3. Slide 3: ITT Corporation - Capabilities

    ITT Corporation - Capabilities FLUID DEFENSE MOTION & FLOW TECHNOLOGY ELECTRONICS CONTROL & SERVICES World’s largest Supplier of military Manufacturer of supplier of pumps defense systems highly-engineered and systems to and advanced critical components transport and technical and for the aerospace,

  4. Slide 4: ITT Corporation - Today

    ITT Corporation - Today CONSOLIDATED REVENUES ($B) 2008E REVENUES BY SEGMENT $11.2 Motion & Flow Control $9.0 $7.8 $7.0 Fluid Defense Technology 2005 2006 2007 2008E EARNINGS PER SHARE 2008E OPERATING INCOME BY SEGMENT Motion & $3.88 Flow Control $3.29 $2.66 $2.36 Fluid Defense Technology 2005 2006

  5. Slide 5: ITT Strategy

    ITT Strategy Long Term Consistent Value Creation Revenue Earnings Operating Margin ROIC Free Cash Flow Portfolio Enhancements Balanced Capital Allocation Values-Based Culture Values/Leadership System Execution Objectives Attractive Markets Lead with Purpose – IMS Operational Excellence Engineered fo

  6. Slide 6: ITT Management System

    ITT Management System We Do Essential Things in Extraordinary Ways • Disciplined Management Values • Lean Enterprise Respect - Integrity - Responsibility • Leadership Integrated Strategic Processes Accountability Resource Operational Growth Excellence Leadership Optimization ƒ Value-Based Management

  7. Slide 7: Drivers of ITT's Portfolio

    Drivers of ITT’s Portfolio Macro Growth Drivers ITT Business Positioned to Meet Demand ƒ Global Security Needs ƒ Defense ƒ Fluid Technology ƒ Population Growth ƒ Motion and Flow Control ƒ Fluid Technology ƒ Emerging Markets ƒ Motion and Flow Control ƒ Environmental ƒ Fluid Technology Conditions ƒ Gl

  8. Slide 8: Excellent Revenue Diversification

    Excellent Revenue Diversification COMMERCIAL* END MARKET DEFENSE CUSTOMER Marine Mining Other Ag/Irrigation Aero/Military Army Municipal Air Force Residential Navy Industrial Transportation Other US Commercial Govt International NASA COMMERCIAL* GEOGRAPHY DEFENSE PRODUCT/SERVICE MIX Latin America Mi

  9. Slide 9: Fluid Technology End Market Exposure

    Fluid Technology End Market Exposure RESIDENTIAL COMMERCIAL MUNICIPAL ‰ Total revenue of ‰ Total revenue of ‰ Total revenue of approx $450M; approx $425M; approx $1B; $300M $250M in U.S. $200M in the U.S. in the U.S. ‰ ~66% of ‰ ~50% of ‰ >40% of U.S. business is business is business is “aftermarket

  10. Slide 10: Market Dynamics

    Market Dynamics Future Environment Customer Priorities ITT Defense Capabilities ƒ Asymmetrical Threat ƒ Net-Centric Operations Communications Remains Sensing & ƒ Force Modernization/Reset ƒ Situational Awareness Surveillance ƒ Pervasive Need for Real ƒ Information Collection, Space Time Information

  11. Slide 11: ITT Defense Electronics & Services - Capabilities

    ITT Defense Electronics & Services - Capabilities Sensing & Advanced Engineering & Communications Space Surveillance Integrated Services • Tactical Comm • Night Vision Systems • Navigational Payloads • Operations & Maintenance • Electronic Warfare • Meteorological Sensors • System Engineering & Syst

  12. Slide 12: Defense Growth Strategy

    Defense Growth Strategy • Extend the Lifecycle of Our Core Business • Penetrate Adjacent Markets/Platforms • Expand Internationally • Unlock Value Between Value Centers • Acquire/Develop Capabilities to Support Customer’s Transformation

  13. Slide 13: Portfolio Enhancements Poised to Add Value

    Portfolio Enhancements Poised to Add Value F-35 Joint Strike Fighter ƒ Leading provider of advanced military technology and services ƒ Highly complementary product and service offering CREW ƒ Several early life cycle contracts ƒ Integration on schedule ƒ Neutral to EPS in 2008; accretive in 2009 Lit

  14. Slide 14: Balanced Capital Allocation Strategy

    Balanced Capital Allocation Strategy ƒ Share Buyback Commitment Remains – Six million shares repurchased since inception ƒ Continue to Increase Dividend – Increased by 25% and 27% in 2008 and 2007, respectively ƒ Investments in the Business – New facilities in China, India and Poland – 13%+ increase

  15. Slide 15: Summary

    Summary ƒ Confident in Achieving our 2008 Forecast: – 24% Revenue Growth* – Mid Single Digit Organic Revenue Growth – ~$250M Segment Operating Income Improvement* – EPS Growth of 17%* – $5B+ in Fully Funded Defense Backlog – Exited 2007 with Very Strong Commercial Backlog *Represents midpoint of the

  16. Slide 16: Slide 16

  17. Slide 17: Appendix

    Appendix 2005 2006 2007 Adjusted EPS from Continuing Ops. $ 2.36 $ 2.66 $ 3.29 Tax Settlements/Other $ 0.44 $ 0.01 $ 0.15 EPS from Continuing Ops. $ 2.80 $ 2.67 $ 3.44 Discontinued Operations, net $ (0.86) $ 0.43 $ 0.59 Cumulative Effect of a Change in Accounting Principle $ (0.03) $ - $ - Reported

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