Slide 1: Fourth Quarter & Full Year 2023 Financial Results
FOURTH QUARTER & FULL YEAR 2023 FINANCIAL RESULTS February 15, 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: 2023 Progress: Launched a New Premier Industrial Technology Company
2023 PROGRESS LAUNCHED A NEW PREMIER INDUSTRIAL TECHNOLOGY COMPANY Successful separation from Crane Company in April 2023 Developed 5-year strategy to grow the company to $3B as a technology leader in solutions that secure, detect, and authenticate what matters most Delivered strong operating
Slide 4: Strong Full Year Results
STRONG FULL YEAR RESULTS $1.4B +4% Core Sales* Core Sales Growth* • Core sales driven by outperformance of Crane Currency 28.4% +30 bps • Segment margin expansion reflects price Adj. Segment Adj. Segment discipline and productivity driven by CBS Op Margin* Op Margin* • Adj. FCF conversion of 111% ex
Slide 5: Q4 2023 Results Summary
Q4 2023 RESULTS SUMMARY Q4 2023 Q4 2022 $ Millions, except per- Q4 Comments: share amounts GAAP Adjusted* GAAP Adjusted* Sales $357 $357 $338 $338 • Core sales growth of 4% driven by shipment of Currency’s international Segment backlog $88 $97 $82 $97 Operating Profit Segment OP • Adj. segment OP ma
Slide 6: Full Year 2023 Results Summary
FULL YEAR 2023 RESULTS SUMMARY 2023 2022 Full Year Comments: $ Millions, except per- share amounts GAAP Adjusted* GAAP Adjusted* • Core sales growth of 4% driven by Sales $1,391 $1,391 $1,340 $1,340 strength in Currency Segment $359 $395 $334 $377 Operating Profit • Adj. segment operating margin up
Slide 7: Crane Payment Innovations (CPI) – Q4 Results
CRANE PAYMENT INNOVATIONS (CPI) – Q4 RESULTS GAAP Non-GAAP* $ Millions Q4 2023 Q4 2022 Change Q4 2023 Q4 2022 Change Sales $215 $231 -7% $215 $231 -7% Segment Profit $57 $62 -8% $62 $73 -15% Segment Margin 26.3% 26.6% -30bps 29.0% 31.6% -260bps Backlog $217 $373 -42% $217 $373 -42% Comments: Q4 2023
Slide 8: CPI – Full Year Results
CPI – FULL YEAR RESULTS GAAP Non-GAAP* $ Millions 2023 2022 Change 2023 2022 Change Sales $886 $874 +1% $886 $874 +1% Segment Profit $243 $217 +12% $265 $245 +8% Segment Margin 27.4% 24.8% +260bps 29.9% 28.0% +190bps Backlog $217 $373 -42% $217 $373 -42% Comments: 2023 • Sales increase driven by pri
Slide 9: Crane Currency – Q4 Results
CRANE CURRENCY – Q4 RESULTS GAAP Non-GAAP* $ Millions Q4 2023 Q4 2022 Change Q4 2023 Q4 2022 Change Sales $142 $107 +32% $142 $107 +32% Segment Profit $31 $20 +54% $35 $24 +46% Segment Margin 22.0% 19.0% +300bps 24.5% 22.2% +230bps Backlog $243 $193 +26% $243 $193 +26% Comments: Q4 2023 • Sales ahea
Slide 10: Crane Currency – Full Year Results
CRANE CURRENCY – FULL YEAR RESULTS GAAP Non-GAAP* $ Millions 2023 2022 Change 2023 2022 Change Sales $505 $466 +8% $505 $466 +8% Segment Profit $116 $117 -1% $131 $132 -1% Segment Margin 23.0% 25.2% -220bps 25.8% 28.2% -240bps Backlog $243 $193 +26% $243 $193 +26% Comments: 2023 • Sales ahead of exp
Slide 11: Strong Balance Sheet and Capital Structure
STRONG BALANCE SHEET AND CAPITAL STRUCTURE $ Millions Q4 2023 Net debt to EBITDA* of ~1.1x (Dec. 31, 2023) Cash Provided from Operating Activities 79 Capital Expenditures (15) $727M Free Cash Flow* 64 $655M Adjusted Free Cash Flow* 65 $105M Term Loan Effective (GAAP) Tax Rate 19% $500M Undrawn Revol
Slide 12: 2024 Guidance
2024 GUIDANCE* Full Year Guidance • Core sales growth reflects continued Crane NXT Core Sales Growth** -1% to +2% softness in the CPI gaming end market and Currency mix CPI Core Sales Growth -3% to 2% Currency Core Sales Growth +2% to +3% • Maintaining high 20%’s adj. segment margin through price an
Slide 13: 2024 Outlook - Crane Currency: International Business Gains Market Share
2024 OUTLOOK - CRANE CURRENCY INTERNATIONAL BUSINESS CONTINUES TO GAIN MARKET SHARE BASED ON TECHNOLOGY LEADERSHIP Active Denominations Using Micro-Optics 150 • 150 denominations using MO technology (+17 vs. 2022) ~14% CAGR 133 • 48 countries specifying micro-optics (+5 vs. 2022) 114 96 • Launched R
Slide 14: 2024 Outlook - Crane Currency: Launch of U.S. New Series
2024 OUTLOOK - CRANE CURRENCY LAUNCH OF U.S. NEW SERIES PROVIDES LONG-TERM TAILWIND Current Technology Supplied by Crane Currency Launch of Paper Micro-Optics New Design* 2026 • Closely collaborating with U.S. government on design and launch of new series 2028 • Sole supplier of U.S. banknote se
Slide 15: 2024 Outlook - CPI: Transitory Headwinds in Gaming
2024 OUTLOOK - CPI TRANSITORY HEADWINDS IN GAMING OFFSETTING ~MSD GROWTH IN THE REST OF THE PORTFOLIO Other • Gaming customers with ~6 months (~5%) of excess inventory on hand Retail Gaming (~15%) (~25%) • Underlying gaming end market healthy, growing at LSD/MSD Portfolio growing CPI Sales • CPI mai
Slide 16: 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 TO ~$1.4B GROW CORE EXCELLENCE EXPAND ~$3B Sales BUSINESS THROUGH CBS PORTFOLIO Sales ~4% International Productivity to Focus on MSD+ Core Growth* currency growth increase margins technolog
Slide 17: 2024 Outlook Summary
2024 OUTLOOK SUMMARY BUILDING A PREMIER INDUSTRIAL TECHNOLOGY COMPANY • Currency continuing to win with technology leadership: gaining share in international markets, investing in upgrades for new U.S. banknotes for long-term growth • CPI growing at ~MSD (ex-gaming); gaming returning to growth in Q4
Slide 18: Q&A
Q&A CRANE
Slide 19: Appendix
APPENDIX
Slide 20: Non-GAAP Explanations
NON-GAAP EXPLANATIONS Crane NXT reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This presentation includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow, and A
Slide 21: 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 22: 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 23: 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) Three Months Ended December 31, Twelve Months Ended December 31, 2023 2022 2023 2022 Adjusted Operating Profit and Adjusted Operating Profit Margin $ Per Share $ Per Share Adjust
Slide 24: Non-GAAP Financial Measures by Segment, Fourth Quarter
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment, Fourth Quarter (unaudited, in millions) Crane Payment Three Months Ended December 31, 2023 Innovations Crane Currency Corporate Total Company Net sales $ 215.1 $ 141.8 $ — $ 356.9 Operating profit (loss) (GAAP) $
Slide 25: Non-GAAP Financial Measures by Segment, Full Year
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment, Full Year (unaudited, in millions) Crane Payment Twelve Months Ended December 31, 2023 Innovations Crane Currency Corporate Total Company Net sales $ 886.4 $ 504.9 $ — $ 1,391.3 Operating profit (loss) (GAAP) $ 24
Slide 26: Free Cash Flow, Net Leverage Ratio
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Free Cash Flow, Net Leverage Ratio (unaudited, in millions) Three Months Ended Twelve Months Ended December 31, December 31, Cash Flow Items 2023 2022 2023 2022 Cash provided by operating activities (GAAP) $ 78.5 $ 75.1 $ 276.3 $ 306.0 Less: Capital exp
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