ITT Inc. · NYSE:ITT
ITT — ITT Industries — EPG Conference 2005
27 slides from ITT's conference presentation, May 2005
Slide 1: EPG Conference May 2005
Steve Loranger Chairman, President & CEO EPG Conference May 2005
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained in this report, that are not historical facts, constitute “Forward-Looking Statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements, in general, predict, forecast, indicate or imply futu
Slide 3: ITT Industries - Today
ITT Industries - Today REVENUE PROFILE (2004 $6.8 Billion) • Multi-Industry Company with Outstanding Organic Growth Fluid • Six Consecutive Quarters of Defense Technology Electronics Double Digit Organic Revenue 38% & Services Growth 36% Electronic Motion & • Leading Positions in Attractive Componen
Slide 4: ITT Management System
ITT Management System Vision To be a premier multi-industry company known for its management talent, market leadership, and operational excellence. We create value for our shareholders through a growth-oriented, global portfolio of businesses that are leaders in their individual markets. Values Hone
Slide 5: ITT Industries – Sustainable Growth
ITT Industries – Sustainable Growth • Leading Positions in Attractive Markets • Long-Term Growth Catalysts • Value Based Decision Making • Professional Culture • “Doing the Right Thing – Always” • Depth of Leadership Talent • Doing the Basics Well – Quality Delivery • “Hard-Wiring” the Cost Structur
Slide 6: ITT Defense – Where We Play
ITT Defense – Where We Play • Address the DoD’s Evolving Needs – Security, Surveillance, Intelligence, Safety and Services • Diverse Contract Base without Platform Dependence • Substantial Future Bid Opportunities • Numerous Next Generation Upgrades • Legacy Programs with Large Installed Base Playin
Slide 7: A Legacy of Excellence…
A Legacy of Excellence… Electronic Protection System - $2.5B (20+ yrs) Combat Radios - $3B (20+ yrs) GPS Payload - $500M (20 yrs) Air Defense Radar - $600M (20 yrs) Night Vision GEN III - $1.4B (20+ yrs) FAA & NASA Support - $700M (15 yrs) Air Force Range Engineering- $2.3B (40+ yrs) …That …That is
Slide 8: Future Opportunities: Communications and Electronics Systems
Future Opportunities Communications and Electronics Systems • “Soldier Waveform” for the Future Battlefield • Increased Requirements for Radios and Night Vision (From One Per Squad to One Per Individual) • Next Generation Night Vision Goggle (Sensor Fusion, Digital) Enhanced Night Vision 7
Slide 9: Future Opportunities: Space and Intelligence Systems
Future Opportunities Space and Intelligence Systems • Next Generation Navigation (GPS) Payloads • Increased Demand for Intelligence, Surveillance and Reconnaissance Imaging Systems • Next Generation Payloads for Weather Satellites from NASA/NOAA 8
Slide 10: Future Opportunities: Engineering & Technical Systems & Services
Future Opportunities Engineering & Technical Systems & Services • Increased Need for Troop Multiplying Capabilities – Engineering and Communications Support – Equipment and Facilities Support • Surface Chemical Agent Detection • Detection of Weapons and Explosives Through Walls, Clothing and Foliage
Slide 11: Selected Recent Contract Wins
Selected Recent Contract Wins • SINCGARS Omnibus Contract: $2.5B – Sales of Radio Systems and Spares; Upgrading with Technology Advances • Global Maintenance and Supply Services: $1B – Combat Equipment Repair and Maintenance • Night Vision Goggles: $560M – Enhanced Night Vision Goggle • Geostationar
Slide 12: ITT Defense Well Positioned for Growth
ITT Defense Well Positioned for Growth ITT Sales v. DoD Outlays DOD Outlays (FY05 POM) ITT Revenues – Key Technology Leadership in $4.5 Attractive Growth Market $925 Segments In $ Billions ITT Revenues $4.0 $825 – Execution on Critical Programs $3.5 Supports High Win Rate $725 $625 $3.0 – Strong Leg
Slide 13: ITT Fluid Technology: Providing Water and Sanitation for all
Providing Water and Sanitation for all! Engineered for Life Robert L. Ayers President ITT Fluid Technology 12
Slide 14: Growth!
Growth! 1. Attractive markets 2. Solid Foundation 3. Building Technology 13
Slide 15: The Drivers
The Drivers Social Factors Regulations Pathogen Population Detection Growth Infrastructure Legislation Water and Migration to Technology Coastal Areas Wastewater Market $350 - 400Bn Improved Efficiencies Urbanization Innovative Systems Awareness Solutions Compelling CompellingDrivers Drivers 14
Slide 16: Global Water & Wastewater Equipment Market
Global Water & Wastewater Equipment Market Global Global Water Water && Wastewater Wastewater Equipment Equipment Treatment Treatment $350 $350 -- 400Bn 400Bn $75 $75 -- 80Bn 80Bn $10- $10- 15Bn 15Bn CAGR:>10% 100% Delivery $16-20Bn Contract Services Disinfection $32-40Bn Primary Separation $2-3Bn C
Slide 17: Strong Positions In Served Markets
Strong Positions In Served Markets * Centrifugal pumps Wastewater Equipment Water Pumping* Treatment & Filtration Pumping $7-8Bn $10-15Bn $9-10Bn 100% 50% $25Bn – 30Bn 40% 30% Company A 9% 20% Company B 8% Company J 14% Company F 4% Company C 5% Company K 8% Company G 2% Company D 3% Company L 5% Co
Slide 18: Brand & Channel Strength
Brand & Channel Strength Market Brand Position Flygt #1 Global Municipal ITT Water & Wastewater WEDECO #1 Global Stable of “Brand” Sanitaire #1 Global Leaders Goulds #1 Americas Residential & Bell & Gossett #1 Americas Commercial Lowara #1 Europe Global z Presence in 137 countries Presence z 2,350 d
Slide 19: Growth Through Adjacent Markets
Growth Through Adjacent Markets Water Reuse Biological Pumps Filtration Disinfection >$0.3Bn Treatment 12% CAGR Systems Integration Sludge Pumping $1Bn 6%CAGR Desalination Filtration $1-2Bn 10% CAGR Surface Water $1Bn 5-6% CAGR Engineered Engineered Systems Systems Monitoring Control 5% $5-7Bn 19% 4
Slide 20: The Cycle of Water
The Cycle of Water DISINFECTION DISTRIBUTION RESIDENTIAL PUMP STATIONS FILTRATION COMMERCIAL WASTEWATER TREATMENT PLANT MBR INTAKE INDUSTRIAL DESALINATION SLUDGE STATIONS MANAGEMENT DISINFECTION MBR WELL SURFACE SALT Dis- WATER WATER WATER charge Core: Pump Surface Water Sludge systems Water Re-Use
Slide 21: Total Sales in Asia Pacific & China
Total Sales in Asia Pacific & China $430 $235 Lin Liang Waterworks, Baosteel, Shanghai Shanghai $130 2000 2004 2008 Incl. Industrial products Asia Pacific China Accelerating Global Growth 20
Slide 22: New Breakthrough Products
New Breakthrough Products •Extending Core Pump Technology •Adding Controls to the Core •Expanding Treatment Technology Total Sales $2.6Bn New Product Sales $2.5 $3.1- 3.4Bn CAGR 5-7% $2.6Bn $750-800M CAGR 11-13% $500M 2004 2008 2004 2008 Significant SignificantOrganic OrganicGrowth Growth 21
Slide 23: Organic Growth Through Innovation
Organic Growth Through Innovation Combined Commercial Treatment Package Pumps UV Pumps Filter MBR UV Monitoring and Controls Monitoring and Controls Sludge Meeting MeetingAll AllNeeds Needs 22
Slide 24: Summary
Summary •Attractive Markets •Solid Foundation •Global Reach •Technology Force •Clear Road Map 23
Slide 25: 2005 Guidance
2005 Guidance 2005 Q2 2005 Outlook Fluid Technology $695 – 715 $2,750 – 2,800 Margin 12.2 – 12.3% 12.3 – 12.5% Defense Electronics $725 – 740 $2,900 – 2,975 Margin 9.8 – 10.0% 10.0 – 10.2% Motion & Flow Control $285 – 295 $1,075 – 1,125 Margin 15.8 – 16.0% 15.2 – 15.4% Electronic Components $175 – 1
Slide 26: Summary
Summary 2005 Off to a Great Start Benefiting from Continued Improvements in Fluid Technology and Electronic Components Strong Competitive Positions in Communications, Space and Services Driving Growth at Defense New Products Fueling Growth within Motion & Flow Control On the Path to Achiev
Slide 27: Engineered for life
© TT industries Engineered for life ITT Industries 26