Crane Company · NYSE:CR
Crane — Crane Co. 2021 Investor Conference (Virtual)
19 slides from Crane's conference presentation, Feb 25, 2021
Slide 1: Fluid Handling
Fluid Handling Alex Alcala, Senior Vice President
Slide 2: Fluid Handling: Results & Guidance, Share Gain, Margins, Summary
FLUID HANDLING Results & Guidance Delivering Share Gain Expanding Margins Summary 2
Slide 3: Fluid Handling results and 2021 guidance
FLUID HANDLING ($ Millions) 2017 2018 2019 2020 2021G** Sales 1,043 1,102 1,117 1,006 1,035 Operating Profit* 115 129 152 115 130 Operating Margin* 11.1% 11.7% 13.6% 11.4% 12.5% Developed Non- Asia-Pacific Residential Chemical Emerging 4% Fluid Construction 23% Markets Handling 22% 17% United States
Slide 4: Fluid Handling: Delivering Share Gain
FLUID HANDLING Results & Guidance Delivering Share Gain Expanding Margins Summary 4
Slide 5: Momentum Driving Share Gain
MOMENTUM DRIVING SHARE GAIN Accelerating Product Innovation 2X OUTPERFORM Commercial Excellence THE MARKET GROWTH Localization 5
Slide 6: Product Innovation Is Accelerating
PRODUCT INNOVATION IS ACCELERATING New Product Sales – Vitality* Singular Focus – Solving our 25% Customer’s Toughest Problems The Right Culture – Big Bold Fast 20% 20% Speed – From Concept → 15% Commercialization 15% 10% 10% 4% 5% 0% 2018 2019 2020 2021E 2022E 2023E 2024E 2025E »» *Process Solution
Slide 7: Breakthrough Product Innovation in Corrosive, Toxic, Abrasive & High Purity Applications
BREAKTHROUGH PRODUCT INNOVATION IMPROVEMENTS IN CORROSIVE, TOXIC, ABRASIVE & HIGH PURITY APPLICATIONS Breakthrough Addition to Triple Offset Valve Line Better Flow 4-6X Lower Total Cost $50M By 2025 2X » • AN INNOVATIVE SOLUTION GROWING DOUBLE DIGITS EVEN DURING THE MARKET DOWNTURN 7
Slide 8: Product Innovation Driving Strong Share Gains
PRODUCT INNOVATION DRIVING STRONG SHARE GAINS IN CORROSIVE, TOXIC, ABRASIVE & HIGH PURITY APPLICATIONS Severe Service Next Generation Expanded Aseptic/ Metal Seated Ball Valve Sleeved Plug Valve Pharma Portfolio Longer Life Lower Torque Maintenance & Installation Costs 50% 50% 50% » • PRODUCT INNOVA
Slide 9: Solving Tough Wastewater Processing Problems: High Solids Content
SOLVING TOUGH WASTEWATER PROCESSING PROBLEMS: HIGH SOLIDS CONTENT APPLICATIONS High Efficiency Chopper Pump Non-Clog Pump Wastewater Maintenance Cost Reduction More Efficient 75% 15% » • LEADING HIGH SOLID PUMPING SOLUTIONS WILL DELIVER $30M BY 2025 9
Slide 10: Moving to Higher Growth Digital Pressure Instrumentation Solutions
MOVING TO HIGHER GROWTH DIGITAL PRESSURE INSTRUMENTATION SOLUTIONS Factory Mobile Automation Hydraulics Designed for Ease of Customization 80% Reduction in Components ➔ Customization drives Performance and Reliability in Difficult Applications Agricultural Equipment Transportation » • EXPANDS SERVED
Slide 11: Driving Growth Through Commercial Excellence
DRIVING GROWTH THROUGH COMMERCIAL EXCELLENCE Incoming Sales Order Created Customer POs in the ERP System Sales Call Activity Front End Automation Next Generation Sales Tools Optimization » • TRENDING TOWARDS 40% IMPROVED SALES PRODUCTIVITY BY 2024 11
Slide 12: Localization – Growth Through Speed and Customer Intimacy
LOCALIZATION – GROWTH THROUGH SPEED AND CUSTOMER INTIMACY China Middle East » • GROWTH MARKETS & SHARE GAIN THROUGH LOCALIZATION WILL DELIVER $20M BY 2025 12
Slide 13: Consolidation Opportunities
STRONG FOCUS ON INORGANIC GROWTH OPPORTUNITIES • Process Valves • Wastewater Prioritization Treatment • Instrumentation & Sampling • Positive Market Segment Growth Drivers Opportunities Consolidation New Platform Fluid • Process Pumps Handling • Ability to Technically Focus Differentiate • Strategic
Slide 14: Fluid Handling: Expanding Margins
FLUID HANDLING Results & Guidance Delivering Share Gain Expanding Margins Summary 14
Slide 15: Confidence in Path to Mid-Teen Margins
CONFIDENCE IN PATH TO MID-TEEN MARGINS Fluid Handling Sales ($ Millions) and Margin %* 1,400 Sales Margins 1,300 Global 1,200 Recession 15% Oil Price Weakens 14% 1,100 13% 13% 12% 12% 12% 12% 11% 11% 1,000 8% 900 6% 800 700 600 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 20
Slide 16: Expanding Margins Through Repositioning
EXPANDING MARGINS THROUGH REPOSITIONING 1 Breakthrough consolidation opportunities; space created through ongoing CBS execution 2 Leveraging current India manufacturing center of excellence – site expansion & consolidation » • AMERICAS REPOSITIONING COMPLETE, EUROPE ON TRACK – DELIVER $25M COST SAVI
Slide 17: Fluid Handling: Summary
FLUID HANDLING Results & Guidance Delivering Share Gain Expanding Margins Summary 17
Slide 18: Summary
SUMMARY 1 STRONG MOMENTUM with Share Gains 2 Attractive Business Platform for INORGANIC GROWTH 3 FOCUSED on 100 BPS Average Margin Improvement per Year » 18
Slide 19: www.craneco.com
» www.craneco.com