Crane Company · NYSE:CR
Crane — Crane Co. 2021 Investor Conference (Virtual)
20 slides from Crane's conference presentation, Feb 25, 2021
Slide 1: Payment & Merchandising Technologies
Payment & Merchandising Technologies Kurt Gallo, Senior Vice President
Slide 2: Agenda
AGENDA Results and Guidance Growth Initiatives Productivity and Efficiency Summary 2
Slide 3: Payment & Merchandising Technologies
PAYMENT & MERCHANDISING TECHNOLOGIES ($ Millions) 2017 2018 2019 2020 2021G** Sales* 777 1,257 1,158 1,115 1,210 Operating Profit* 159 218 187 137 224 Operating Margin* 20.5% 17.4% 16.2% 12.3% 18.5% Developed Asia-Pacific 8% Crane Emerging Currency Markets 39% 27% Crane U.S./Canada Payment & Payment
Slide 4: Track Record of Success
TRACK RECORD OF SUCCESS Adjusted Operating Margin* expected to triple from 2009 to 2021G Currency Acquisition COVID Target Margin Range & of 18–22% 20.5% Cummins Allison MEI Acquisition 18.5% 17.9% Acquisition 17.4% 16.2% 15.1% 12.8% 12.3% 10.7% 10.1% 8.0% 7.0% 6.1% 2009 2010 2011 2012 2013 2014 201
Slide 5: Agenda
AGENDA Results and Guidance Growth Initiatives Productivity and Efficiency Summary 5
Slide 6: Dramatic Business Evolution
CRANE PAYMENT INNOVATIONS DRAMATIC BUSINESS EVOLUTION OEM Solutions System Solutions Connectivity Solutions Service Solutions Market Size: $1.3 B Market Size: $1.3 B Market Size: $500 M Market Size: $750 M 2018: 96% 2018: 0% 2018: 4% 2018: 0% 2020: 58% 2020: 20% 2020: 7% 2020: 15% (of total business
Slide 7: Retail Offers Expansive Growth Opportunities
RETAIL OFFERS EXPANSIVE GROWTH OPPORTUNITIES Bank Amusement Back Office Center Coin Coffee Shop Redemption Check Out »» • RETAIL AUTOMATION LANDSCAPE CONTINUING TO EVOLVE AND EXPAND 7
Slide 8: Extending OEM Market with New Line of Cashless Devices
EXTENDING OEM MARKET WITH NEW LINE OF CASHLESS DEVICES All-in-One Cashless Reader/Telemeter 8
Slide 9: Customer Facing System Solutions
CUSTOMER FACING SYSTEM SOLUTIONS OEM and DIY Self Check-out Pay Station Coin Redemption Kiosk Solutions Solutions Solutions »» • ENHANCING CUSTOMER EXPERIENCE AND DELIVERING OPERATOR PRODUCTIVITY 9
Slide 10: Back-Office Solutions
BACK-OFFICE SOLUTIONS Smart Safe Note Scanner and Counter Coin Counter Solutions Solutions Solutions »» • DRIVE ACCOUNTABILITY, SECURITY, AND PRODUCTIVITY 10
Slide 11: Connected Solutions Extending Across Platforms
CONNECTED SOLUTIONS EXTENDING ACROSS PLATFORMS Peoria County Cook County »» Montgomery County Champaign County • CONNECTIVITY PROVIDES INFORMATION THAT DRIVES PRODUCTIVITY 11
Slide 12: Extensive Field Service Opportunities
EXTENSIVE FIELD SERVICE OPPORTUNITIES Preventative Break / Fix Maintenance Note Counter Tell Cash Recyclers Spare Predictive Parts Analytics ATM (by GRG) Smart Safes » » • 450+ PERSON STRONG FIELD SERVICE ORGANIZATION PROVIDES AMPLE OPPORTUNITIES FOR GROWTH BEYOND CAPTIVE PRODUCTS 12
Slide 13: Crane Currency: New Products Increasing Markets and Accelerating Growth
CRANE CURRENCY NEW PRODUCTS INCREASING MARKETS AND ACCELERATING GROWTH HIGH Stripe Multi-Color Rapid Rapid Patch HD Motion Value Breeze New 2022 New 2022 New 2021 New 2020 LOW LOW HIGH Price » • TECHNOLOGY EXPANSION IS DELIVERING GROWTH 13
Slide 14: Design and Technology Drive Growth
DESIGN AND TECHNOLOGY DRIVE GROWTH 144 Denominations 49 Countries 62 Denominations 105 Denominations 144 Denominations 26 Countries, 2 Product 40 Countries, 3 Products 49 Countries, 5 Products, 2014 2017 2020 »» • ADOPTION OF CRANE’S MICRO-OPTICS ACCELERATED OVER LAST 10 YEARS 14
Slide 15: US Banknote Demand Expected to Remain Strong
US BANKNOTE DEMAND EXPECTED TO REMAIN STRONG Federal Reserve Yearly Currency Orders* (Billions of Banknotes) 7.6 7.4 7.1 6.3 6.2 2017 2018 2019 2020 2021 »» • NEW SERIES PROGRESSING; PROVIDES LONG-TERM GROWTH OPPORTUNITIES * Yearly currency orders correspond to the U.S. Government’s fiscal year whic
Slide 16: Agenda
AGENDA Results and Guidance Growth Initiatives Productivity and Efficiency Summary 16
Slide 17: Cummins Allison: CBS & Integration Excellence
CUMMINS ALLISON: CBS & INTEGRATION EXCELLENCE The Driver Operating Profit Productivity Improvement Improvement 120% 13% Kaizens 25 2019 2020 2019 2020 Inventory Space Reduction Reduction 9 2 20% 33% 2019 2020 2021 E Cadence Rigor Discipline 2019 2020 2019 2020 17
Slide 18: Agenda
AGENDA Results and Guidance Growth Initiatives Productivity and Efficiency Summary 18
Slide 19: Summary
SUMMARY 1 Continued Solid Performance Track Record 2 Positive Long-term Market Drivers 3 Technology Leadership 4 Scale Across Cash Cycle is a Differentiator »» • FUNDAMENTALS THAT DRIVE FUTURE GROWTH 19
Slide 20: www.craneco.com
» www.craneco.com