Esco Technologies Inc. · NYSE:ESE
Esco Technologies — Investor Presentation (November 2001)
17 slides from Esco Technologies's investor presentation, Nov 28, 2001
Slide 1: ESCO Technologies
TECHNOLOGIES NYSE Symbol: ESE November 2001
Slide 2: Forward-Looking Statement
Forward-Looking Statement This presentation contains “forward-looking” statements within the meaning of the safe harbor provisions of the federal securities laws. Investors are cautioned that such statements are only predictions, and speak only as of November 28, 2001. The Company’s actual results i
Slide 3: ESCO Served Markets - FY 2001
ESCO Served Markets - FY 2001 Industrial 27% Aerospace 21% DEFENSE 12% COMMERCIAL 9% Healthcare 18% Automotive Products 14% Electronics 13% Consumer & Appliance 7%
Slide 4: ESCO Strategy
ESCO Strategy B ESCO will sustain its Momentum through ~ Continued Investment in New Products - Ongoing Performance Improvement Actions ~ Selective Acquisitions m Supported by ~- AStrong Balance Sheet -- AND — ~ A Dedicated Management Team whose Interests are Strongly Aligned with the Shareholders
Slide 5: Financial Goals
Financial Goals mNew ESCO 5 Year View ~ Sales Growth > 10% CAGR ~ Operating Profit Margin > 15% _~ EPS Growth > 15% CAGR
Slide 6: New Product Sales Outlook
New Product Sales Outlook FY ’00 $47.1 Million in New Product Sales 15.7% of Total Sales FY ‘01 $70.1 Million in New Product Sales 20.3% of Total Sales ESCO Patents + Over 150 Issued + Over 100 Pending Includes Products Introduced During Prior 3 Years
Slide 7: Engineering Investment
Engineering Investment FY ’01 Engineering Expenditures = $25.4M (7.4% Sales) Filtration 50% Communications 27% RF Shielding &Test 17% Other 6% Engineering Force Count ~ 260
Slide 8: ESCO Performance Improvement Actions
ESCO Performance Improvement Actions FY ’01 Selected Data m Sales up 14.9% over prior year m@ Force-count reduced 2.2% compared to prior year 3 Facilities Closed; Sq. Ft. Reduced 6.5% m@ Operating Margin improvement of 0.7% Ongoing a Test Consolidation in Austin > Will be complete Q2, FY’02 m@ Europ
Slide 9: Balance Sheet ($000)
Balance Sheet ($000) 9/30/01 Cash & Equivalents Accounts Receivable Inventory 54.8 Other Current Assets 5.5 Total Current Assets $ 136.2 [includes Tax Property, Plant & Equip, Net 65.0 | Effected NOL of Other Assets 174.4 ql $45.5M, retained Total Assets $ 376.6 | from former defense Current Maturit
Slide 10: Dedicated Management
Dedicated Management @ Executive Equity Ownership Program - Outright Ownership of 3X & 5X Total Cash Compensation = Board of Directors Ownership Program ~ 5X Retainer @ Broad Stock Option Incentive Program (Approx. 200 Management Participants) @ Economic Profit Improvement is an Incentive Compensati
Slide 11: Filtration Segment
Filtration Segment m ESCO Addressable Market ~$5B @ Served Markets - Industrial Process (20%) - Transportation ~ Health Care (19%) — Auto (20%) ~ Consumer & Appl. (13%) —- Aero (28%) ™ Broad Blue Chip Customer Base: E] esr
Slide 12: Filtration Growth Drivers
Filtration Growth Drivers @ Leadership Position in Certain Niches Driven by Technology Advancements and Customer Support > Membrane Development » Advanced Pleating Geometries > Process Improvement in Insert Injection Molding > Rapid Prototyping Capabilities > 3D Design Systems Networked with Custome
Slide 13: RF Shielding & Test
RF Shielding & Test m@ Market Profile ~ ESCO Addressable Market ~$400M. m@ Served Markets ~ Electronics (46%) ~ Transportation _ Health Care 31%) — ~ Auto (12%) _ Other (2%) ~ Aero (9%) m@ Broad Blue Chip Customer Base: Technologies GM ® We bring good things to lite
Slide 14: RF Shielding & Test
RF Shielding & Test H ESCO is the global leader of radio frequency (RF) shielding and electromagnetic compatibility (EMC) test products. & Growth Drivers -~ MRI ~ Proliferation of Electronic Devices ~ International — Calibration Services
Slide 15: Communications
Communications m@ Market Profile — ESCO Addressable Market + North American Automatic Meter Reading (AMR) ~ $6B — 97 Million Meters + 70% Investor Owned + 15% Municipal + 15% Co-op + Plus Developing — Demand Side Management — International m@ Served Markets — Industrial (93%) - Electronics (7%) mg C
Slide 16: Two-way Automatic Communications System TWACS
Two-way Automatic Communications System TWACS® + Power Line Based Fixed Network System ¢ Most Capable Proven System Available = 40 North American Utilities, 3.5M End Points = Can be Deployed System-wide = Versatility / Value-Added Features > Two-way Load Control > Time of Use > Outage Mapping - Clea
Slide 17: Communications
Communications @ Growth Drivers - Market . Deregulation Driving More Attention to Efficiency and Customer Care Ry - Meter Reading Cost - Theft - Call Center Cost Customer - Billing Accuracy - Call Center Responsiveness - Outage Restoration - ESCO + Existing Product Attributes + Investment in New Pro
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