ITT Inc. · NYSE:ITT
ITT — Q4 2009 Earnings Presentation
15 slides from ITT's earnings presentation, Feb 3, 2010
Slide 1: Fourth Quarter 2009 Investor Review
Fourth Quarter 2009 Investor Review February 3, 2010
Slide 2: 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 Private Securities Litigation Reform Act of 1995.
Slide 3: 2009 ITT Highlights
2009 ITT Highlights Exceptional Operational & Strategic Execution 9 Strong 2009 Performances -6% Adjusted EPS -5% Organic Revenue +$500 Million Productivity Achieved $1.1 Billion Record Free Cash Flow Generation 9 Positioned for Future Growth Maintained Strategic Investments Proactive Re
Slide 4: 2010 ITT Strategic Overview
2010 ITT Strategic Overview Investing in Growth Strategic Execution 9 Driving Above Market Growth 9 Driving Incremental Productivity 9 Targeting 100% Free Cash Flow Conversion Differentiated Organic Growth 9 Investing in Defense Diversification 9 Investing in Customer Solutions 9 Implementing Co
Slide 5: Introducing ITT Defense & Information Solutions
Introducing…ITT Defense & Information Solutions Improving Alignment & Operational Efficiency We formed By Combining these Value Centers and these capabilities ¾ Electronic Warfare Systems Electronic Systems ¾ Networked Communications Electronic Systems Communication Systems ¾ Composite Structure
Slide 6: 2009 ITT Results
2009 ITT Results Strong Execution in Challenging Conditions Results Q4 Full-Year $ millions, except per share amounts 2009 vs 2008 2009 vs 2008 Revenues $2,870 -3% $10,904 -7% Segment Operating Income $328 +17% $1,287 -7% Segment Operating Margin 11.4% +190 bps 11.8% -10 bps Adjusted EPS* $0.97 +18%
Slide 7: 2009 ITT Financial Position
2009 ITT Financial Position Record Free Cash Flow Generation Free Cash Flow* +146% YTD Free Cash Flow Conversion** $1.1B Record Performance $1,060 $871 12.4% Working Capital % of Sales +70 bps improvement vs PY Improved Receivable Collections +22% 2008 $ millions 2009 Net Debt to Net Capital S
Slide 8: Fluid Technology
Fluid Technology Strong Productivity & Stabilizing Orders Q4 Results $ millions 2009 vs 2008 Revenues $924 -6% Operating Income $104 +9% Operating Margin 11.3% +160 bps Restructuring & Realignment -$11 $31 Q4 Performance -13% Organic Revenue: -2% Organic Orders: -2% WWW; -19% R&CW; -27% IP +9% WWW;
Slide 9: Motion & Flow Control
Motion & Flow Control Strong Productivity; Stabilizing Orders & Market Share Gains Q4 Results $ millions 2009 vs 2008 Revenues $332 +2% Operating Income $17 +564% Operating Margin 5.0% +610 bps Restructuring & Realignment -$26 $16 Q4 Performance -1% Organic Revenue: +7% Organic Orders: +20% Motion;
Slide 10: Defense & Information Solutions
Defense & Information Solutions (Formerly Defense Electronics & Services) Strong Productivity & Backlog Q4 Results $ millions 2009 vs 2008 Revenues $1,617 -1% Operating Income $207 +10% Operating Margin 12.8% +130 bps Restructuring $0 $9 Backlog $5,188 -1% Q4 Performance -1% Organic Revenue: +5% Org
Slide 11: 2010 ITT Earnings Outlook
2010 ITT Earnings Outlook Raising EPS Guidance on Strong Productivity; Stabilizing Markets Full Year 2010 Guidance $ billions, except per share data vs 2009 2010 Midpoints Total Organic Segment Revenue Fluid Technology ~$3.4 +2% +1% Motion & Flow Control ~$1.3 +1% Flat Defense & Information Solution
Slide 12: Appendix
Appendix Q4 2009 Investor Review. For non-GAAP reconciliations, refer to appendix and www.itt.com/ir. February 3, 2010 P12
Slide 13: Q4 2009 ITT Segment Performance
Q4 2009 ITT Segment Performance Fluid Motion & Flow Defense ITT Q4 '09 Total Revenue vs PY -6.1% 1.7% -1.2% -2.6% FX -5.7% -5.3% 0.0% -2.5% Acquisition/Disposition -1.3% 2.6% 0.0% -0.1% Q4 '09 Organic Revenue vs PY -13.1% -1.0% -1.2% -5.2% Q4 '08 Margin 9.7% -1.1% 11.5% 9.5% Operational, Investments
Slide 14: Non-GAAP Reconciliations - EPS & FCF
Non-GAAP Reconciliations - EPS & FCF Q4 Full Year EPS - Reconciliation 2008 2009 2008 2009 Reported EPS $ 1.01 $ 1.08 $ 4.32 $ 3.50 Discontinued Ops. $ (0.05) $ (0.02) $ (0.11) $ 0.04 Reported EPS - Continuing Ops. $ 0.96 $ 1.06 $ 4.21 $ 3.54 Special Items: Tax Settlements & Other Adjustments $ (0.1
Slide 15: 2009 ITT Adjusted EPS Guidance Roll-Forward
2009 ITT Adjusted EPS* Guidance Roll-Forward 2009 Adjusted EPS Previous FY 2009 Guidance (Dec 18, 2009) $ 3.73 Q4 Operating Performance $ 0.01 Q4 Incremental Restructuring & Realignment $ (0.02) Q4 Corporate, Taxes & Other $ 0.06 Total Q4 Performance $ 0.05 2009 Adjusted EPS* $ 3.78 Strong Operating