ITT Inc. · NYSE:ITT

ITT — Investor Day (November 2007)

101 slides from ITT's investor day presentation, Nov 13, 2007

1. Slide 1: Think about itt

   Ehink:about itt Engineered for life

2. Slide 2: Slide 2

3. Slide 3: 2007 Analyst Day

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4. Slide 4: Agenda

   Agenda 1:00 – 1:05 Peter Milligan – Welcome & Safe Harbor 1:05 - 1:25 Steve Loranger – Chairman, President and CEO 1:25 – 2:10 Gretchen McClain – President, Fluid Technology 2:10 – 3:00 Nick Hill – President, Motion and Flow Control 3:00 - 3:15 Break 3:15 - 4:00 Steve Gaffney – President, Defense El

5. Slide 5: 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 st

6. Slide 6: Engineered for life

   Engineered for life

7. Slide 7: 2007 Analyst Day - Gretchen McClain, Fluid Technology

   2007 ANALYST DAY Gretchen McClain President, ITT Fluid Technology November 13, 2007

8. Slide 8: Unprecedented Water Challenges

   Unprecedented Water Challenges Population Growth Water Scarcity Infrastructure Needs Regulations Energy Costs Waterborne Diseases 2

9. Slide 9: The Cycle of Water

   The Cycle of Water Agriculture picture to be added Wastewater Transport Wastewater Transport ITT’s Broad Portfolio Covers the Entire Cycle 3

10. Slide 10: Water Industry Attractiveness

    Water Industry Attractiveness INDUSTRY SEGMENTS ~$350B EQUIPMENT SEGMENTS ~$60B 12% 10% Consumables 10% Consumables 9% Pumps Pumps ITT Focus Operating Margin Operating Margin 8% 8% Equipment Equipment 6% 7% Operations Operations Valves Valves Treatment 4% 6% Pipes Treatment Eng.&& Engineering 2% 5%

11. Slide 11: Required Global Water Investment

    Required Global Water Investment Targeted Water Equipment Investment Areas ƒ Water and wastewater Source Storage infrastructure needs over the next two decades: – Globally - over $3.0 trillion(1) Treatment Pumps, Pipes – U.S. - up to $1.2 trillion(2) & Valves (1) World Water Vision, 2007 (2) EPA (20

12. Slide 12: ITT's Position in the Global Fluid Market

    ITT’s Position in the Global Fluid Market(1) $100B ITT Premium Brand Leadership ƒ #1 Globally Industrial Process Wastewater ƒ #2 in N. America Transport Building Municipal Water Services ƒ #1 in N. America Treatment Dewatering ƒ #2 Globally ƒ #1 Globally (1) Fluid market includes ~$60B of water equi

13. Slide 13: Well-Balanced Growth Performance

    Well-Balanced Growth Performance REVENUE ($Billion) OPERATING INCOME ($Million) $3.4 $3.1 $2.8 500 Operating Income Margin 17% $2.6 400 14% GR 10% CA 300 GR 16% CA 11% 200 8% 100 0 5% (1) 2004 2005 2006 2007E 2004 2005 2006 2007E (1) (1) Represents the mid-point of full-year guidance (1) For non-GAA

14. Slide 14: Fluid Technology Strategy

    Fluid Technology Strategy Market Expansion New • Leveraging distribution Growing 2X Market • Emerging markets Customers +2-3% Core Penetration Expand Offerings • Commitment to Existing customers • Innovation +2-3% GDP+ Existing New Products/Services Strategy Designed to Grow Revenue and Deliver Marg

15. Slide 15: Leveraging Our Sales & Distribution Channels

    Leveraging Our Sales & Distribution Channels DIRECT DISTRIBUTION 70% INDIRECT DISTRIBUTION 30% ƒ Effective in premium segment ƒ Effective in value segment of - Enables control over customer market: experience - Brand - Product Attributes ƒ Control over proprietary - Operational Performance applicati

16. Slide 16: Emerging Market Strategy

    Emerging Market Strategy REVENUE OPPORTUNITY COST OPPORTUNITY ƒ New world-class service ƒ Expanding and improving and manufacturing existing footprint facilities ƒ Moving high-quantity, low- ƒ Unifying and expanding variability products sales force ƒ Leverage supply base ƒ China/India tech centers t

17. Slide 17: Innovation Drives Organic Growth

    Innovation Drives Organic Growth Lowers Maintenance Costs Predictive condition …while generating monitoring reduces attractive aftermarket maintenance costs… opportunities Lowers Operating Costs Designing disinfection Next generation systems that consume Dewatering pumps less energy deliver 3x impro

18. Slide 18: Utilizing Innovation to Improve Cost Structure

    Utilizing Innovation to Improve Cost Structure ƒ Standardization drives: ƒ Lower costs and increased profitability ƒ Need for fewer unique parts ƒ Effective leveraging of supply base ƒ Lower customer maintenance costs Applying Lean From Design To Production 12

19. Slide 19: Leverage Market Adjacencies

    Leverage Market Adjacencies DEWATERING REVENUE ($Million) SLUDGE REVENUE ($Million) $300 $20 $250 $200 $180 $12 $4 $5 2004 2005 2006 2007E 2004 2005 2006 2007E ƒ Current market size = $4B ƒ Current market size = $350M ƒ Market growth rate = 8% ƒ Market growth rate = 6% ƒ Key end-markets: ƒ Key end-m

20. Slide 20: Operational Excellence

    Operational Excellence GLOBAL SOURCING LEAN INITIATIVES • Value center consolidation LCR Spend LCR % $500 25% • Cycle time reduction $400 • Quality improvement 20% LCR spend % (2) LCR(1) spend $ $300 FOOTPRINT RATIONALIZATION 15% $200 • Consolidation of factories 10% $100  Closed 10 facilities duri

21. Slide 21: Margin Performance

    Margin Performance CONSISTENT MARGIN IMPROVEMENT 13.6% 12.5% 12.9% 11.8% 2004 2005 2006 2007E MARGIN PERFORMANCE Accomplishments Headwinds ƒ Footprint rationalization ƒ Legacy Treatment ƒ Lean enterprise ƒ Material cost increases ƒ Volume leverage ƒ Investment critical to sustaining growth ƒ Global

22. Slide 22: Value Center Overviews

    Value Center Overviews Engineered for life 16

23. Slide 23: Fluid Technology – Organizational Evolution

    Fluid Technology – Organizational Evolution “One” Global Water & Fluid Technology Wastewater Dewatering Industrial Industrial Process Treatment Wastewater Bldg. Transport Services Res. & Comm. Water Muni. Water Simplification has Created Three Market Facing Units 17

24. Slide 24: ITT Water & Wastewater

    ITT Water & Wastewater REVENUE ($Billion) PRODUCT/SERVICE PROFILE $1.6 $1.4 $1.2 $1.1 Dewatering Municipal Pumps Service Treatment 2004 2005 2006 2007E GEOGRAPHIC PROFILE KEY FOCUS ƒ Turnaround of Legacy AWT USA Business ROW ƒ Dewatering Sales/Rental - Asia Western Globally Pacific Europe ƒ Emerging

25. Slide 25: ITT Residential & Commercial Water

    ITT Residential & Commercial Water REVENUE ($Billion) PRODUCT/SERVICE PROFILE $1.2 $1.0 $1.1 $0.9 Residential Commercial 2004 2005 2006 2007E Ag/Irrigation Other GEOGRAPHIC PROFILE KEY FOCUS ƒ International Building Services Other North Asia America ƒ Operational Excellence Pacific Western Europe ƒ

26. Slide 26: Market Exposure

    Market Exposure RESIDENTIAL COMMERCIAL ‰ Total revenue of approx ‰ Total revenue of approx $450M; $250M in U.S. $425M; $200M in the U.S. ‰ ~66% of business ‰ ~50% of business is is “aftermarket” “aftermarket” ‰ Total exposure to U.S. new ‰ Total exposure to U.S. new construction of ~$80M constructio

27. Slide 27: Industrial Process Group

    Industrial Process Group REVENUE ($Million) APPLICATIONS Oil & Gas Power Chemical $660 $596 $561 $515 General Industrial Mining Pulp & Paper 2004 2005 2006 2007E INDUSTRIAL PUMP MARKET = $22B KEY FOCUS Weir ITT Sulzer ƒ International Markets KSB Flowserve ƒ Oil, Gas & Mining Sectors Ebara ƒ Monitori

28. Slide 28: Industrial Process – Equipment Business Cycle

    Industrial Process – Equipment Business Cycle “Projects” More Cyclical Lower Profitability Resource Intensive Parts Service Less Cyclical Higher Profitability Standard Efficient Processes Replacements Additional Competitor Product Offerings Installed Base Provides Foundation for High Margin Aftermar

29. Slide 29: Positioned for Premier Growth

    Positioned for Premier Growth ƒ Well-positioned to benefit from significant market opportunity ƒ Growing at 2X market and confident with strategic direction ƒ Consistent margin expansion through cost structure improvements ƒ Diversifying into adjacent markets/technologies in the attractive water spa

30. Slide 30: Q&A

    Q&A Engineered for life 24

31. Slide 31: Engineered for life

    Engineered for life

32. Slide 32: 2007 Analyst Day - Nick Hill, Motion & Flow Control

    2007 ANALYST DAY Nick Hill President, Motion & Flow Control November 13, 2007

33. Slide 33: What We'll Cover

    What We’ll Cover ƒ Establishing the Platform ƒ Broadening our Perspective ƒ Leveraging Relatedness ƒ Growing Strong Businesses 2

34. Slide 34: What We'll Cover

    What We’ll Cover ƒ Establishing the Platform ƒ Broadening our Perspective ƒ Leveraging Relatedness ƒ Growing Strong Businesses 3

35. Slide 35: What Have We Done?

    What Have We Done? 2005* Sales – $1,784 2007** Sales – $1,230 Connectors Switches Aerospace 20% 20% Connectors 8% 35% Koni Friction 5% 29% Friction 16% FHS Jabsco 23% Aerospace Koni 9% HydroAir M&L 4% 8% 3% 20% Op Income $182 Op Income $194 Op Margin 10% Op Margin 16% ROIC 13% ROIC 30% ƒ Higher unat

36. Slide 36: How Do We Create Value?

    How Do We Create Value? ƒ Attractive Businesses MFC Attractiveness Model – High engineering content – Strong aftermarket sales ƒ Highly engineered and – Global markets mission critical parts – Strong brands – Low % overall system cost – Cost of failure is high Strong Financial Performance ƒ High lev

37. Slide 37: Diversified Along Many Lines

    Diversified Along Many Lines REVENUE – END MARKET* Industrial Defense ƒ Wide array of end market exposure Aerospace Other Transportation Marine ƒ Products serve high end of their Rail, Truck, Bus Automotive respective markets REVENUE – OEM/AFTERMARKET* ƒ Balance between OEM and OEM aftermarket furth

38. Slide 38: History of Strong Financial Performance

    History of Strong Financial Performance REVENUE ($M) / OPERATING MARGIN Excl. IMC ƒ Consistent organic revenue growth $1,400 Revenue Margin 17% $1,200 15% ƒ Portfolio changes supporting $1,000 13% recent acceleration ƒ Continual operating margin $800 11% $600 $400 9% expansion 7% $200 – Led by lean

39. Slide 39: What We'll Cover

    What We’ll Cover ƒ Establishing the Platform ƒ Broadening our Perspective ƒ Leveraging Relatedness ƒ Growing Strong Businesses 8

40. Slide 40: Turning MFC on its Side

    Turning MFC on its Side Former Approach New Approach ƒ Narrow market approach ƒ Expand technology ƒ Limited product range platforms ƒ Focused on ƒ Leverage into broader operational excellence verticals ƒ Strong technology base Expanding the Group’s Addressable Market 9

41. Slide 41: Broader View of KONI

    Broader View of KONI Shock Damping Energy Koni Absorption Noise Vibration Product Focus: Applications & End Markets Shock Absorbers Technologies Opening the Lens Creates Significant Growth Opportunities 10

42. Slide 42: Broader View of KONI

    Broader View of KONI 7% 6% Energy Opportunity Creation $1.3B $2.5B $2.5B Market Market Market Opening the Lens Creates Significant Growth Opportunities 11

43. Slide 43: Energy Absorption: Synergies in Progress

    Energy Absorption: Synergies in Progress Acquisition of IMC fills technology gaps Little market overlap gives excellent synergy potential Immediate market leader in specialty energy absorption Suspension Shock = KONI Transportation Industrial Aviation Defense Vibration Isolation & Noise Abatement =

44. Slide 44: How Best to Organize for Growth?

    How Best to Organize for Growth? IMC Energy Absorption New Approach KONI ƒ Integrating IMC Flow Control Marine & Leisure ƒ Creating a new organization Motion Control ƒ Driving our technology Friction position into adjacent markets Friction Connectors ƒ Structure designed for effective execution Aero

45. Slide 45: What Does This Mean for Motion & Flow?

    What Does This Mean for Motion & Flow? • Expanded the addressable market Addressable Market for ITT’s highest margin segment >$25B $16B • Improved revenue growth rate potential • M&A rich sector with reasonable Previous Current transaction multiples Revenue Growth • Strengthens Motion & Flow Control

46. Slide 46: What We'll Cover

    What We’ll Cover ƒ Establishing the Platform ƒ Broadening our Perspective ƒ Leveraging Relatedness ƒ Growing Strong Businesses 15

47. Slide 47: How Best to Leverage for Scale?

    How Best to Leverage for Scale? ITT MANAGEMENT SYSTEM RESEARCH & DEVELOPMENT ƒ Shared value system ƒ Developing “Center of Excellence” ƒ Integrated strategic processes within Flow Control ƒ Growth ƒ Cross-value center engineering collaboration ƒ Resource optimization ƒ Shared R&D centers ƒ Operation

48. Slide 48: Market Power in Key Vertical Markets

    Market Power in Key Vertical Markets Leveraging Distribution Aerospace Channels Market Leveraging technologies across value centers Aerospace Opportunities Future Opportunity Motion Energy Flow Control Interconnects Friction Control Absorption 17

49. Slide 49: What We'll Cover

    What We’ll Cover ƒ Establishing the Platform ƒ Broadening our Perspective ƒ Leveraging Relatedness ƒ Growing Strong Businesses 18

50. Slide 50: Controls

    Controls REVENUE ($Million) REVENUE BY MARKET $52 Electro- $46 Shape-Cutting $38 Motion Controls Mechanical $29 Seat Actuation Industrial 2004 2005 2006 2007E Products PRODUCT KEY FACTS ƒ Customer domain knowledge ƒ System integration capability PC-based Load Cells & Servo Controls Tension Transduce

51. Slide 51: Aerospace Controls

    Aerospace Controls REVENUE ($Million) REVENUE BY CHANNEL $99 $85 $79 $73 OEM Aftermarket 2004 2005 2006 2007E PRODUCT KEY FACTS ƒ Strong legacy position with ƒ Aircraft Fuel Systems ƒ Regulators aircraft manufacturers ƒ Fuel Boost Pumps ƒ Benefiting from market tailwind ƒ Valves ƒ Actuators ƒ Signif

52. Slide 52: Flow Control

    Flow Control REVENUE ($Million) REVENUE BY MARKET $250 $265 $228 $240 General Marine Industrial 2004 2005 2006 2007E Beverage Oil & Gas Automation (IMC) Marine & Leisure Spa/Whirlpool PRODUCTS KEY FACTS ƒ Marine & Leisure and IMC Valves ƒ Strong position in verticals ƒ Marine, Beverage ƒ Excellent b

53. Slide 53: Energy Absorption

    Energy Absorption REVENUE ($Million) REVENUE BY MARKET $231 Bus/Truck/ Rail $196 $180 Trailer $164 Aviation Auto Defense 2004 2005 2006 2007E Energy Absorption/Distribution (IMC) Koni Industrial PRODUCTS KEY FACTS ƒ KONI and IMC technology platforms ƒ Widest range of solutions on market ƒ Shock, vib

54. Slide 54: Interconnect Solutions

    Interconnect Solutions REVENUE ($Million) REVENUE BY MARKET Military/ $420 Aerospace Industrial $382 $369 $361 2004 2005 2006 2007E Other Transportation PRODUCTS KEY FACTS ƒ Significant improvement in revenue and operating margin ƒ Broad product portfolio ƒ Custom solutions in demanding environments

55. Slide 55: Friction Technologies

    Friction Technologies REVENUE ($Million) COMPETITIVE LANDSCAPE - MARKET SHARE $376 Europe $318 Federal Mogul $292 Honeywell $266 TMD Others Recent Platform Wins ƒ BMW X5 ƒ Audi A4 ITT ƒ Honda CR-V 2004 2005 2006 2007E ƒ Citroen C5 OE PAD PRODUCTION ’07-’10 (in Millions of Units) KEY FACTS 160 2007 1

56. Slide 56: Motion & Flow Control Summary

    Motion & Flow Control Summary Rebalanced Portfolio Expanded Segment Creating Value Through Model for Value Creation Addressable Market Relatedness Attractive Value Creating Segment for ITT $1.5B Segment with Exciting Prospects for Top and Bottom Line Growth 25

57. Slide 57: Engineered for life

    Engineered for life

58. Slide 58: 2007 Analyst Day - Steve Gaffney, ITT Defense

    2007 ANALYST DAY Steve Gaffney President, ITT Defense November 13, 2007

59. Slide 59: ITT Defense Vision

    ITT Defense Vision To be a Trusted Provider of Mission-Critical Products and Services in Support of our Nation and its Allies ƒ Highest Ethical Standards ƒ Superior Customer Satisfaction ƒ Flawless Execution ƒ Strong Leadership Team One Team – One Mission 2

60. Slide 60: Segment Overview

    Segment Overview REVENUE ($Billion) OPERATING INCOME ($Million) $4.0 $508 $3.7 $411 $3.2 $364 $2.4 $254 (1) (1) 2004 2005 2006 2007E 2004 2005 2006 2007E (1) Represents the mid-point of full-year guidance For non-GAAP reconciliations, refer to Appendix ROIC SUMMARY 36% 29% ƒ Revenue CAGR 19% 27% 22%

61. Slide 61: 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

62. Slide 62: 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

63. Slide 63: Diversified Portfolio of Services and Products

    Diversified Portfolio of Services and Products Balanced Market Participation Diversified Customer Base Other Labs FAA Advanced Communications Int’l Engineering and Integrated NASA Services Navy Sensing Air Force Army and Surveillance Space Proprietary 2007E Revenue Split Mix of Products and Services

64. Slide 64: Segment Strategic Objectives

    Segment Strategic Objectives • 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 Combination Drives Superior Financial Returns 7

65. Slide 65: Extend the Lifecycle of Our Core Business

    Extend the Lifecycle of Our Core Business Communications Sensing & Surveillance SINCGARS SideHat Gen III Night Vision Goggles EO/IR Night Vision Goggles SINCGARS Soldier Radio Waveform – WIFI for Next Generation Digital Current Elec. Countermeasures the Battlefield ECM System (ECM) System Space Adva

66. Slide 66: Penetrate Adjacent Markets/Platforms

    Penetrate Adjacent Markets/Platforms Communications Sensing & Surveillance ATC Voice & Data Handheld Gen III Night Vision Mini-B Night Vision Voice & Data Goggles Goggles Remote Control Radio Based Combat ID GPS Fan-Out RF Counter Measures IR Counter Measures Space Advanced Engineering & Integrated

67. Slide 67: Expand Internationally

    Expand Internationally Communications Sensing & Surveillance • United Kingdom • Australia • Iraq Gen III Night • Japan • Bulgaria • Saudi Arabia Vision Goggles • Egypt • India • Taiwan AIDEWS Space Advanced Engineering & Integrated Services Positioned as the LOGCAP Worldwide strong provider for inte

68. Slide 68: Unlocking Value Between Value Centers

    Unlocking Value Between Value Centers Automatic Dependent Surveillance - Broadcast System (ADS-B) ƒ Key component of FAA’s NextGen Air Traffic Control System ƒ Initial three-year contract value $200M ƒ $1.9B potential through 2025 granted by FAA for this transformational program ƒ Designed to provid

69. Slide 69: Acquire Capabilities to Support Customer's Transformation

    Acquire Capabilities to Support Customer’s Transformation Electronic Systems and Communications Engineered Systems and Services Integrated Electronic Systems & Warfare Structures IED Jammer Shortstop Electronic Composite Weapon Protection System Structures Launcher Undersea C4 Warfare Joint Enhanced

70. Slide 70: Value Center Overviews

    Value Center Overviews Engineered for life 13

71. Slide 71: Aerospace/Communications Division

    Aerospace/Communications Division Revenue ($M) Portfolio 900 750 ƒ World’s Leading Tactical VHF Radio 600 Supplier 450 ƒ Enhanced Operational Efficiency Drives Productivity 300 ƒ Production Remains Constant in 2004 2005 2006 2007(E) Support of US Army Requirements Market Participation Growth Strateg

72. Slide 72: Space Systems Division

    Space Systems Division Revenue ($M) Portfolio 700 ƒ GPS Payloads 600 ƒ Intelligence Surveillance and 500 Reconnaissance 400 ƒ NOAA Space Science & Weather 300 GOESS, NPOESS, POES 200 ƒ Commercial Imaging - GEOEYE, 100 Digital Globe - ƒ Image Analysis and Information 2004 2005 2006 2007(E) Solutions

73. Slide 73: Electronic Systems Division

    Electronic Systems Division Revenue ($M) Portfolio 450 Radar Systems ƒ EW RF Countermeasures Radar Systems 400 Electronic Warfare ƒ Strategic ƒ Air Defense 350 ƒ Tactical ƒ ATC 300 250 ƒ Rotary 200 150 100 50 - 2004 2005 2006 2007(E) Market Participation Growth Strategies US Army Extend Core Busines

74. Slide 74: Night Vision Division

    Night Vision Division Revenue ($M) Portfolio 500 ƒ Leader in Providing 450 Soldier Night Vision 400 Equipment 350 300 ƒ Demand for ITT NV 250 solutions remains strong 200 150 ƒ Partnered with US Army 100 to develop next 2004 2005 2006 2007(E) generation solutions Market Participation Growth Strategi

75. Slide 75: Advanced Engineering & Sciences Division

    Advanced Engineering & Sciences Division Revenue ($M) Portfolio 500 ƒ Advanced Communications & Information Solutions 450 400 ƒ Chemical Biological Radiation Nuclear & 350 Explosive (CBRNE) 300 Analysis and Product 250 Development 200 ƒ Missile Defense and 2004 2005 2006 2007(E) Strategic Systems Ma

76. Slide 76: Systems Division

    Systems Division Revenue ($M) Markets Served 1,400 ƒ Logistics 1,200 ƒ Base Operation Services 1,000 ƒ Vehicle Equipment 800 Maintenance 600 ƒ Information Integration 400 & Operations 200 ƒ Worldwide Operations - 2004 2005 2006 2007(E) Market Participation Growth Strategies NASA Navy Dept of State A

77. Slide 77: Backlog

    Backlog Backlog is Fully Funded $4,000 $3,500 $3,000 Products $2,500 Good Visibility $2,000 $1,500 Services $1,000 Book & Bill $500 $- 2003 2004 2005 2006 2007E Products Services Well Balanced Backlog Provides Excellent Visibility 20

78. Slide 78: Defense Summary

    Defense Summary ƒ Capabilities Aligned with Customer Needs ƒ High Level of Confidence in Strategic Path ƒ Strong Backlog Provides Great Visibility ƒ Driven to Meet Commitments ƒ One Team, One Mission Positioned to Grow 8 – 10% Over Planning Horizon 21

79. Slide 79: Engineered for life

    Engineered for life

80. Slide 80: 2007 Analyst Day - Denise Ramos, CFO

    2007 Analyst Day Denise Ramos Senior Vice President & Chief Financial Officer November 13, 2007

81. Slide 81: 2007 Highlights

    2007 Highlights ƒ A Year of: – Continuing to Deliver Strong Revenue, EPS and Free Cash Flow Growth – Dramatic Strategic Progress – New Program Wins – New Plants – New Portfolio – Balanced, Disciplined Capital Deployment Solid Foundation for Growth 2

82. Slide 82: Consistent Financial Performance

    Consistent Financial Performance CONSOLIDATED REVENUES ($B) ƒ 14% CAGR $8.8 $7.0 $7.8 ƒ 10% Organic CAGR $6.0 ƒ Share Gains Across Multiple Businesses ƒ Uniquely Positioned to Maintain 2007E Premier Growth 2004 2005 2006 SEGMENT OPERATING MARGIN ƒ Key Drivers 13.3% 12.4% 12.5% 11.7% ƒTailwinds ƒOper

83. Slide 83: Consistent Financial Performance

    Consistent Financial Performance EARNINGS PER SHARE $3.52 ƒ 19% CAGR $2.85 $2.56 ƒ Expected EPS growth of 23% in $2.08 2007 ƒ Well positioned to continue to deliver double-digit earnings 2004 2005 2006 2007E growth FREE CASH FLOW ($M) $686 >$640 ƒ Consistent delivery of strong $630 free cash flow $4

84. Slide 84: Segment Revenue Profile

    Segment Revenue Profile 2004 2007E $6.0B $8.8B* Motion & Motion & Flow Control Flow Control Defense Defense Fluid Technology Fluid Technology * Based on guidance midpoints Well-Balanced Top-Line Expansion 5

85. Slide 85: Excellent Revenue Diversification

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

86. Slide 86: 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

87. Slide 87: Segment Operating Profit Profile

    Segment Operating Profit Profile 2004 2007E $0.7B* $1.2B* Motion & Motion & Flow Control Flow Control Defense Defense Fluid Technology Fluid Technology * Adjusted for special items; 2007E based on guidance midpoints Consistent Contribution from Each Segment 8

88. Slide 88: Strong Balance Sheet

    Strong Balance Sheet Net Debt NET DEBT ($M) ƒ Net debt reduction reflects strong free $1,009 cash flow, IMC acquisition $816 and non-core asset divestitures ƒ Balance sheet position enables financing of pending EDO transaction $160 $195 ƒ Net Debt to Net Capital of 5% (33% 2004 2005 2006 9/30/2007 p

89. Slide 89: Working Capital Management

    Working Capital Management NET WORKING CAPITAL AS % OF SALES 17.3% 15.2% 13.9% 13.6% 2004 2005 2006 2007E IMPROVEMENT DRIVERS ƒ Inventory – lean/six sigma initiatives improve cycle time while reducing waste ƒ Receivables ƒ U.S. - centralized credit and collection drives improved A/R days ƒ Overseas

90. Slide 90: Strong ROIC

    Strong ROIC ROIC* DRIVERS ƒ Growth in profitability >17.0% 15.4% 16.1% ƒ Working capital 13.3% improvements ƒ Disciplined capital allocation ƒ Footprint realignment ƒ Divestiture of non-core assets 2004 2005 2006 2007E *EBIT, excluding special items over total assets less non-interest bearing curren

91. Slide 91: Capital Allocation

    Capital Allocation Converting $4B* of cash …into disciplined, balanced generation… capital deployment Debt Acquisitions Issuance Free Cash Flow Debt Repayment Divestitures Dividends Net Share Repurchase * Cash generation in 2004-9/30/2007 Using Cash to Build Value 12

92. Slide 92: Dividends / Share Repurchase

    Dividends / Share Repurchase DIVIDENDS / PAYOUT RATIO OUTSTANDING SHARES $120 Dividends ($M) 17% Payout Ratio $100 15% 189 189 187 184 $80 13% $60 11% $40 9% $20 7% $- 5% 2004 2005 2006 2007E 2004 2005 2006 2007E ƒ Committed to increasing dividends ƒ Stock appreciation has led to significant faster

93. Slide 93: Acquisition Strategy

    Acquisition Strategy STRATEGIC FIT FINANCIAL CRITERIA ƒ Enhances Core Business or ƒ Positive Net Present Value is Adjacent to the Core ƒ Internal Rate of Return > ƒ Offers Sustainable Value Cost of Capital Creation and Competitive ƒ “Reasonable” Payback Advantages Period ƒ Platform for Future Growth

94. Slide 94: Cumulative Total Return to Shareholders

    Cumulative Total Return to Shareholders 100% ITT Stock 90% S&P 500 Industrials Index S&P 500 Index 80% 70% 60% 50% 40% 30% 20% 10% 0% 12/31/2003 12/31/2004 12/31/2005 12/31/2006 9/30/2007 * Through 9/30/2007 Cumulative Total Shareholder Return of 89% Since 2003* 15

95. Slide 95: Internal Measurement

    Internal Measurement SHORT-TERM LONG-TERM ƒ Organic Revenue Growth ƒ Total Shareholder Return over Three-Year Period ƒ Operating Margin Percentage Relative to S&P Industrials (Commercial Businesses) Index ƒ EPS Growth ƒ Stock Options ƒ Quarterly Free Cash Flow ƒ Restricted Shares ƒ Return on Investe

96. Slide 96: 2008 Guidance

    2008 Guidance 2008 Segment Detail* Outlook Fluid Technology $3,675 – 3,725 Margin 13.9 – 14.2% Defense Electronics $4,350 – 4,400 Margin 12.7 – 12.9% Motion & Flow Control $1,525 – 1,575 Margin 14.9 – 15.1% 2008 Consolidated Outlook Revenues $9,525 – 9,675 Segment Op. Margin 13.6 – 13.8% EPS, excl.

97. Slide 97: 2008 EPS Guidance Comparison

    2008 EPS Guidance Comparison 2008 yr/yr Consolidated 2007E1 Outlook Growth2 EPS, excl. restructuring $3.50 – 3.53 $3.95 – 4.10 12 – 17% EPS, incl. restructuring3 $3.30 – 3.33 $3.80 – 3.95 15 – 19% 1 2007E EPS excludes impact of net benefit of tax settlement/other 2 Based on 2007E guidance midpoint 3

98. Slide 98: Financial Summary

    Financial Summary ƒ Diversified Portfolio Enables Consistent, Predictable Performance ƒ Expectation for Continued Operating Strength in 2008 ƒ Double Digit Revenue Growth ƒ Further Operating Margin Improvement ƒ Strong EPS Growth ƒ Continued Commitment to Balanced Capital Allocation On Track to Deli

99. Slide 99: Engineered for life

    Engineered for life

100. Slide 100: Non-GAAP Reconciliations - EPS

     Non-GAAP Reconciliations - EPS 2003 2004 2005 2006 Adjusted EPS from Continuing Ops. $ 1.71 $ 2.08 $ 2.56 $ 2.85 Restructuring, Net $ (0.09) $ (0.11) $ (0.20) $ (0.19) Tax Settlements/Other $ 0.26 $ 0.19 $ 0.44 $ 0.01 EPS from Continuing Ops. $ 1.88 $ 2.16 $ 2.80 $ 2.67 Discontinued Operations, net

101. Slide 101: Non-GAAP Reconciliations – Segment Operating Income

     Non-GAAP Reconciliations – Segment Operating Income 2004 2005 2006 Defense Electronics & Services Op. Income, as adj $ 254.1 $ 363.7 $ 410.6 Restructuring $ - $ - $ (6.3) Op. Income, as reported $ 254.1 $ 363.7 $ 404.3 Fluid Technology Op. Income, as adj $ 301.9 $ 351.2 $ 397.3 Restructuring $ (18.1

ITT — Investor Day (November 2007) on 6ix