Crane Company · NYSE:CR
Crane — Crane Co. 2022 Investor Conference
13 slides from Crane's conference presentation, Mar 30, 2022
Slide 1: Financial Overview
FINANCIAL OVERVIEW Jason Feldman Vice President, Investor Relations
Slide 2: Impressive Standalone Financial Profile
IMPRESSIVE STANDALONE FINANCIAL PROFILE • Strong track record of mid single digit core growth • Attractive business mix with 40%+ recurring revenue • Differentiated technology • Leading market positions in niche markets • Pre-corporate Adjusted EBITDA margin ~28%* • Ability to compound growth throug
Slide 3: Best-in-Class Financial Metrics
BEST-IN-CLASS FINANCIAL METRICS ($ millions) 2022G ADDITIONAL DETAILS 2021 Sales Sales $1,395 • Corporate cost ~3% of sales Crane Pre-corporate Adjusted at separation, and then Currency EBITDA* $391 declining 40% % of sales 28.0% • Annual capex ~1.5% to 2.0% of sales (~$25 million) Adjusted operatin
Slide 4: Crane NXT's History of Strong Sales Growth
CRANE NXT’S HISTORY OF STRONG SALES GROWTH Crane NXT sales (as reported, $ millions) COVID 1,600 1,400 1,200 1,000 800 600 400 200 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022G Proven ability to drive both organic and inorganic growth 4
Slide 5: Crane Currency's History of Significant Growth
CRANE CURRENCY’S HISTORY OF SIGNIFICANT GROWTH Crane Currency sales ($ millions) 600 U.S. Revenue International revenue 500 400 300 200 100 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022G Crane currency has shown extremely strong long-term
Slide 6: Crane NXT's Solid Core Growth
CRANE NXT’S SOLID CORE GROWTH Crane NXT organic growth (ex-M&A / ex-FX) 19.1% Expect average 4% to 6% core growth 8.5% 6.0% 6.0% 6.6% 5.0% 1.6% COVID -18.9% 2015 2016 2017 2018 2019* 2020 2021 2022G Growth initiatives should drive further acceleration in core growth 6 * Calculation of 2019 core sale
Slide 7: History of Strong Operational Execution
HISTORY OF STRONG OPERATIONAL EXECUTION Payment & Merchandising Technologies adjusted operating margin* 30% COVID 25% 600 bps of D&A 22.6% 22.0% 20% 20.5% 17.9% 17.4% 15% 16.2% 15.1% 12.8% 12.3% 10% 10.3% 11.2% 10.7% 10.1% 7.8% 8.0% 7.0% 7.0% 5% 5.9% 6.1% 1.8% 0% 2003 2004 2005 2006 2007 2008 2009 2
Slide 8: Substantial Growth Opportunities
SUBSTANTIAL GROWTH OPPORTUNITIES • Broadest global portfolio • Technology leadership positions • Entering adjacent non-payment markets • Proven track record of leveraging CBS to drive margins and growth • Long history of successful M&A Substantial commonalities with mid-cap industrial technology com
Slide 9: Similar Profile to SMID-Cap Industrial Technology
SIMILAR PROFILE TO SMID-CAP INDUSTRIAL TECHNOLOGY CRANE NXT SMID-CAP INDUSTRIAL TECHNOLOGY Free cash flow conversion* ~94% 86% 2022 Adjusted EBITDA margin** 28% less corporate expense ~25% ~20% GDP+ growth √ √ Substantial recurring revenue √ √ Proven M&A ability √ √ Competitive dividend √ Variable S
Slide 10: Mixed Alignment with Tech-Payment/Authentication
MIXED ALIGNMENT WITH TECH-PAYMENT/AUTHENTICATION SMID-CAP INDUSTRIAL TECH-ENABLED PAYMENT CRANE NXT TECHNOLOGY AND AUTHENTICATION Free cash flow conversion* ~94% 86% 81% 28% less 2022 Adjusted EBITDA margin** corporate expense ~25% ~20% ~23% GDP+ growth √ √ √√ Substantial recurring revenue √ √ √ Pro
Slide 11: Minimal Similarity to Traditional Payment Peers
MINIMAL SIMILARITY TO TRADITIONAL PAYMENT PEERS SMID-CAP TECH-ENABLED “TRADITIONAL” CRANE NXT INDUSTRIAL PAYMENT AND PAYMENT TECHNOLOGY AUTHENTICATION Free cash flow conversion* ~94% 86% 81% 77% 28% less 2022 Adjusted EBITDA margin** corporate expense ~25% ~20% ~23% ~16% GDP+ growth √ √ √√ X Substan
Slide 12: Best-in-Class Financial Profile Merits Premium Valuation
BEST-IN-CLASS FINANCIAL PROFILE MERITS PREMIUM VALUATION 28% pre-corporate 40%+ of sales 4-6% core Adjusted EBITDA are recurring sales growth margin* (2022G) Strong Free Cash Robust Substantial Flow conversion capital return M&A opportunity Strong financial profile consistent with mid-cap industrial
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