Slide 1: First Quarter 2024 Financial Results
FIRST QUARTER 2024 FINANCIAL RESULTS May 9, 2024
Slide 2: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding the Company's intent, belief, or expectati
Slide 3: Executing on Our Strategy
EXECUTING ON OUR STRATEGY • Closed first M&A transaction in the large and growing authentication market – Welcome OpSec Security to Crane NXT • Announced Security and Authentication Technologies segment, aligned with strategy focused on growing technology solutions that secure, detect and authentica
Slide 4: OpSec Security – A Crane NXT Company
OPSEC SECURITY – A CRANE NXT COMPANY Leading provider of digital and physical authentication technologies and services Authentication Solutions Online Brand Protection ~$80M-$90M May to Dec 2024 Sales* Services for authenticating Provides online monitoring of physical products that include counterfe
Slide 5: OpSec Adds Additional Capabilities and Resiliency to NXT
OPSEC ADDS ADDITIONAL CAPABILITIES AND RESILIENCY TO NXT SOLUTION TYPE SALES TYPE END MARKETS Software Physical Gov’t and Digital Authentication Sports and Services Recurring 6% Media Financial 20% Services ~30% 20% 40% 37% ~65% ~5% 16% 40% All Other Industrial 21% Hybrid Reoccurring (Digital and Ph
Slide 6: Updated Reporting Segments
UPDATED REPORTING SEGMENTS Providing trusted technology solutions to secure, detect and authenticate what matters most Security & Authentication Technologies Crane Payment Innovations Reportable Segments 2024 Sales* 2024 Sales* ~$605M ~$885M Businesses Operating Discipline Crane Business System (CBS
Slide 7: Q1 2024 Results Summary
Q1 2024 RESULTS SUMMARY Q1 2024 Q1 2023 $ Millions, except Q1 Comments: per-share amounts GAAP Adjusted* GAAP Adjusted* Sales $314 $314 $329 $329 • Core sales decline of ~4% in line with expectations Segment 73 85 79 88 Operating Profit • Productivity programs maintaining Segment OP Adjusted segment
Slide 8: Crane Payment Innovations (CPI) – Q1 Results
CRANE PAYMENT INNOVATIONS (CPI) – Q1 RESULTS GAAP Non-GAAP* $ Millions Q1 2024 Q1 2023 Change Q1 2024 Q1 2023 Change Sales $ 209 $ 224 (7%) $ 209 $ 224 (7%) Segment Operating Profit 53 62 (15%) 61 67 (10%) Segment Operating Margin 25.2% 27.6% (240bps) 29.0% 30.1% (110bps) Backlog 189 349 (46%) 189 3
Slide 9: Crane Currency – Q1 Results
CRANE CURRENCY – Q1 RESULTS GAAP Non-GAAP* $ Millions Q1 2024 Q1 2023 Change Q1 2024 Q1 2023 Change Sales $ 105 $ 105 (1%) $ 105 $ 105 (1%) Segment Operating Profit 20 18 +15% 24 21 +12% Segment Operating Margin 19.4% 16.7% +270bps 22.8% 20.1% +270bps Backlog 233 207 +13% 233 207 +13% Comments: Q1 2
Slide 10: Launch of New U.S. Banknote Series on Track
LAUNCH OF NEW U.S. BANKNOTE SERIES ON TRACK • Launch of new $10 note scheduled for 2026 • Redesigns for $5, $20, $50, $100 planned for 2028-2034 • Upgrades in papermaking equipment needed to accommodate the new designs and technology • Equipment upgrades result in lower 2024 revenue for Q1 and Q4, p
Slide 11: Current & Post OpSec Close Capital Structure
CURRENT & POST OPSEC CLOSE CAPITAL STRUCTURE Net leverage ratio* of ~1.2x Net leverage ratio* of ~1.8x (Mar. 31, 2024) (Estimated May 31, 2024) $864M $696M $679M $210M $25 Revolver Revolver $104 $104 Term Loan Term Loan $475M Undrawn Revolver $350M $440M $350M 4.2% 4.2% notes due 2048 notes due 2048
Slide 12: Updated 2024 Guidance
UPDATED 2024 GUIDANCE* Guidance Updated Feb 14, 2024 Guidance • Core sales growth for CPI and Currency Crane NXT Sales Growth** -1% to +3% 5% to 8% on-track, no change from prior guidance Adjusted EPS $4.10 to $4.35 $4.10 to $4.35 • ~$80M to $90M in sales for OpSec Adjusted Segment 27% to 29% 26% to
Slide 13: On Track to Execute 5-Year Targets
ON TRACK TO EXECUTE 5-YEAR TARGETS 2023 CONTINUE TO DRIVE DISCIPLINED 5-YEAR TARGET INVEST AND OPERATIONAL M&A ~$1.4B GROW CORE EXCELLENCE TO EXPAND ~$3B Sales BUSINESS THROUGH CBS PORTFOLIO Sales ~4% International Productivity to Focus on MSD+ Core Growth* currency growth increase margins technolog
Slide 14: Q&A
Q&A CRANE
Slide 15: Appendix
APPENDIX CRANE NO T
Slide 16: Non-GAAP Explanations
NON-GAAP EXPLANATIONS Crane NXT reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow, and
Slide 17: Non-GAAP Explanations
NON-GAAP EXPLANATIONS The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • "Adjusted operating profit" and "Adjusted operating margin" add back to operating profit items
Slide 18: Non-GAAP Explanations
NON-GAAP EXPLANATIONS The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • "Net leverage ratio" refers to Net debt divided by trailing twelve months (TTM) Adjusted EBITDA
Slide 19: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures (unaudited, in millions except per share data) 19
Slide 20: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment, First Quarter (unaudited, in millions) 20
Slide 21: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Free Cash Flow, Net Leverage Ratio (unaudited, in millions) 21
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