Slide 1: Comprehensive Settlement of Asbestos Liability
Exhibit 99.2 Crane Co. Comprehensive October 21, 2004Settlement of Asbestos Liability 1
Slide 2: Forward-Looking Statements Disclaimer
Forward-Looking This Disclaimer obligation Annual factors. 2 presentation Report Please to update also onincludes Statements Form refer forward-looking 10-K toforward-looking theand fullsubsequent forward-looking statements statements reports to reflect statements filed thatactual with are by discla
Slide 3: Comprehensive Settlement Agreement
Comprehensive Agreement Attorneys Independent Charge No All Bank 3 Change Financing credit of representing $238MM in facility representative Principle Committed Business Settlement increased or $4.04 majority to Operations Resolve ofper from future of share all current $300MM orclaimants Current Rel
Slide 4: Background and Objectives
Dramatic Background Federal Commitment “The Form Crane Remove Address Focus 4 Company 8-K Co. fully Legislation asbestos Escalation filed Objectives ontoprofitable by continues Shareholders with uncertainty the Unavailable inCompany finality Rate growth to of explore discount Claims, and on July all
Slide 5: Escalation of Claims and Costs
Dramatic Background 90 1995 as $90 Cumulative Claims 5 of 80$80 9/30/04 1996 70Outstanding $70 60 Escalation 1997 Costs 50 $60 40 1998 $50 ($Millions) 30Cumulative (thousands) in$40 20 1999 Claims 10 $30 0 $20 2000 and Costs 2001 $10 Legal 2002 $0Defense 2003 & 2004 Settlement Costs
Slide 6: Asbestos Defense and Settlement Costs
Dramatic Background ($ 2001 Gross Total (1) 6 inBefore Millions) 2002 Costs Settlement Defense Escalation insurance 2003 (pre-tax) Year Costs ‘04 Costs 9v. of recoveries $3.1 (1) Month ‘03 Claims (1) $2.3 $12.1 $0.8 YTD $4.8 and & $7.3 $21.1 tax $9.2 Legal $11.9 effects $32.3 $18.0 Defense $14.3 $14
Slide 7: Current Asbestos Reserve and Insurance Recoveries
Crane Never Background Certain Insurance Current Increased $162MM 7 of Company remaining to Recoveries its$200MM Manufactured valves, Reserve as pumps Approximately gross of September to Asbestos and with 2007 boilers charge 30, 40%contained at 2004 of year-end Settlement (pre-insurance) gaskets, 20
Slide 8: A Cloud of Uncertainty Over Valuation
Cloud Background “A $8-$10/share Ronald undervalued.” “We P/E; Curt “Asbestos company, David The 8 central above the believe Woodworth, Smith, ofJ.discount Uncertainty Epstein, especially issues issue quotes asbestos discount Citigroup for continued is JP do Merrill investors even given Morgan not r
Slide 9: Two Components of Comprehensive Settlement
Comprehensive Two Settlement 524(g) Federal Enacted Specifically Provides 9 Components Post-Petition Legislation by that Trust Congress designed a company Settlement ®ofCurrent (Section Trust Agreement in to 1994 permanently with ®Asbestos 524(g) Future asbestos in Principle Asbestos ofClaims resolv
Slide 10: Two Components: Master Settlement Agreement
Agreement Two Master Paid 524(g) 70 150 Trust 10 MM MM Components on disbursement to disbursements Post-Petition Settlement conclusion stock be 20-year funded in or Principle cash 6% to Agreement upon of amounts Agreement for Trust note solicitation claimants plan $230MM ® to Future of(“MSA”) be reo
Slide 11: MCC Prepackaged Bankruptcy Filing
Comprehensive MCC Consists Represents Expect coverage Insurance No All Crane Business 11 management operations non-asbestos and Co. toof Operations with recover reimbursements Subsidiaries Not retains has 11% U.S. customers, committed of Included Settlement of fluid changes creditors, filing insuran
Slide 12: Identification of Filing Entities
Identification Percent (on 524(g) Resistoflex-Industrial Crane $1.6 Non-Filing MCC $169 12 abillion million pro Holdings, Valves Valve Pumps Environmental filing offorma Total Entities Sales Services entities Operating North & ofbasis) Crane Systems Inc.—Parent Inc Inc.—Filing Filing 80% 89% America
Slide 13: 524(g) Process Timeline
524(g) Announcement 10/21/04 -Majority “Pre-Pack” 3/05* MSA Court 6/06* Post-Petition 70 $150 $230 * 13Dates MMMM for Approval Pre-Pack for Stock Current of Total Note illustration Chapter Current Trust orof of Process Cash Claimants Agreement Plan for 11 Claimants Future only Filing for for MCC Cla
Slide 14: Financing in Place
Financing The $300 150 Crane Additional Company 14 MM Company MM Co.term retains In revolving expects annual Place loan hasits after-tax received tofor current facility remain 5 years interest adividend extended investment commitment $450cost MM policy through first grade total from year 2009 JPMorg
Slide 15: Business as Usual for Customers and Suppliers
Financing Business All Full Upon Expect If 15 not Suppliers Resources granted the request as Chapter inUsual Place Will by to ofthe be Crane 11 for Continue granted Court, filing, Company’s Co.Crane MCC to arebeCommitted Paid Suppliers will Co. has seek in Full committed Court and toand Stand Custom
Slide 16: Illustrative Settlement Funding and Sources
Illustrative In Asbestos-Related Comprehensive Other Net Funding Expected From Crane Total (1) (2) the (3) 16 $A Settlement Crane third ($578) Millions portion $578 Operating Asbestos-Related Stock quarter Tax Insurance has Purposes Issuance of option Benefit and Asbestos these Settlement Cash 2004
Slide 17: Committed Financing and Credit Profile
Comprehensive Committed Includes $450MM Borrowings Focus Returns Settlement Insurance 17 onto ample Rapid of reimbursements existing Trust Financing peak facilities unused Settlement Recovery funding atleverage approximately inliquidity Place ($280 to expected Cash statistics Existing million) Flows
Slide 18: Environmental Phoenix/Goodyear Site
Environmental Phoenix/Goodyear, Site Customers Materials Investigation 1990-1994: 1994-2001: 2001: 2003-2004: 2004: Known Crane Future Total *The 18 operated 3Q’04 $40MM Additional EPA Co. estimated Costs and now incurred filed primarily Active Crane Charge and by equipment charge Settlement has sui
Slide 19: Calculation of After-Tax Charge
(Calculation Gross Net Less: Addition Other Environmental Total Tax After-Tax Per (1) (2) 19 in Includes Existing Share $Reserve Benefit Additional Anticipated millions, Existing Asbestos toImpact Reserve of (124) net settlement Required Charge Reserves, except Reserve Related Settlement reserve Res
Slide 20: Settlement Positive News Highlights
Settlement Positive Removes No Suppliers Business 20 management employee News As as “Cloud toHighlights usual be Usual layoffs for paid changes of with Our for Uncertainty” inrelated All Shareholders, full customers Crane intoaccordance the Co. sosettlement that Entities Employees, We withCan Throug
Slide 21: Questions & Answers
Questions For 21 www.craneco.com. additional & Answers information, including all public disclosure documents pertaining to the proposed asbestos settlement, please refer to the Investor Relations portion of our company website