Slide 1: First Quarter 2023 Financial Results
FIRST QUARTER 2023 FINANCIAL RESULTS May 10, 2023
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 Crane NXT, Co.’s (the “Company”) intent, b
Slide 3: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER Readers should carefully review Crane NXT, Co.’s financial statements and the notes thereto, as well as the section entitled “Risk Factors” in Item 1A of Crane NXT, Co.’s Annual Report on Form 10-K for the year ended December 31, 2022 and the other documents C
Slide 4: Non-GAAP Explanation
NON-GAAP EXPLANATION This presentation contains non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not as a substitute for or superior to, measures of financial performance prepared in accordance with U.S. GAAP. There are a number of limitations related to the use
Slide 5: Strong First Quarter Results, Raising 2023 Guidance
STRONG FIRST QUARTER RESULTS, RAISING 2023 GUIDANCE $329M +3% • First quarter results ahead of expectations Sales Core Sales Growth in orders, revenue, and operating margins • Crane Payment Innovations (CPI) delivered $0.97 +34% stronger than expected core sales +10% Adj. EPS Core Backlog Growth wit
Slide 6: Crane NXT Provides Trusted Technology Solutions to Secure, Detect, and Authenticate
CRANE NXT PROVIDES TRUSTED TECHNOLOGY SOLUTIONS TO SECURE, DETECT, AND AUTHENTICATE WHAT MATTERS MOST Secure Detect Industry-leading materials technology to protect currency and high-value products Advanced detection systems and software to authenticate and manage transactions Authenticate $1.3B ~40
Slide 7: Crane NXT Value Creation Formula
CRANE NXT VALUE CREATION FORMULA Resilient core revenue growth at • Investing in core business to ~MSD capitalize on opportunities to enhance organic growth • Continuously utilizing CBS to improve M&A to Expand to CBS to drive Strong FCF margins and generate high FCF Higher-Growth continuous convers
Slide 8: 5-Year Roadmap
5-YEAR ROADMAP 2023 CONTINUE TO DRIVE DISCIPLINED 5-YEAR TARGET INVEST AND OPERATIONAL M&A TO ~$1.3B GROW CORE EXCELLENCE DIVERSIFY ~$3B Sales BUSINESS THROUGH CBS PORTFOLIO Sales ~MSD U.S. Government Productivity to drive Focus on MSD+ Core Growth new series margin expansion technologies that Core
Slide 9: Q1 2023 Earnings Summary and Highlights
Q1 2023 EARNINGS SUMMARY AND HIGHLIGHTS Q1 2023 Key Message: $ Millions, except per-share amounts As-Reported* Adjusted* Sales $329 $329 • Adjusted EPS of $0.97 ahead of expectations Operating Profit $66 $77 Operating Profit Margin 20.0% 23.3% • Solid core sales growth of 3% Net Income / Adj. EBITDA
Slide 10: Crane Payment Innovations (CPI)
CRANE PAYMENT INNOVATIONS (CPI) GAAP Adjusted* $ Millions, except per-share amounts Q1 2023 Q1 2022 Change Q1 2023 Q1 2022 Change Sales $224 $211 +6% $224 $211 +6% Segment Profit $62 $49 +27% $67 $55 +22% Segment Margin 27.6% 23.2% +440 bps 30.1% 25.9% +420 bps Backlog $349 $340 +3% $349 $340 +3% Ke
Slide 11: Crane Currency
CRANE CURRENCY GAAP Adjusted* $ Millions, except per-share amounts Q1 2023 Q1 2022 Change Q1 2023 Q1 2022 Change Sales $105 $122 (13%) $105 $122 (13%) Segment Profit $18 $35 (50%) $21 $39 (45%) Segment Margin 16.7% 28.9% NM 20.1% 31.9% NM Backlog $207 $89 +132% $207 $89 +132% Key Message: Q1 2023 •
Slide 12: Strong Balance Sheet and Capital Structure
STRONG BALANCE SHEET AND CAPITAL STRUCTURE $ Millions Q1 2023 Net debt to EBITDA of ~1.7x (April 4, 2023) Cash Provided from Operating Activities 35.5 Capital Expenditures (4.0) ~$900M* Free Cash Flow* 31.5 Adjusted Free Cash Flow* 33.3 $350M ~$770M* Term Loan Effective (GAAP) Tax Rate 20.0% Non-GAA
Slide 13: Raising 2023 Guidance
RAISING 2023 GUIDANCE* Prior Revised Business Segment 2023 Revenue Growth Drivers Guidance Guidance Adjusted Segment Crane Payment • Strong secular trends supporting 27.1% 27%+ Margin Innovations (CPI) investment in automation and productivity initiatives Corporate Expense $50M $50M • Continued impr
Slide 14: Key Messages from Q1 2023
KEY MESSAGES FROM Q1 2023 • Better than expected performance on orders, sales and operating profit • Deployment of Crane Business System continuing to drive productivity • Raising full year Adjusted EPS guidance by $0.10 to ~$3.75-$4.05 • Strong balance sheet for future capital deployment Off to str
Slide 15: Crane NXT – A Premier Industrial Technology Company
CRANE NXT – A PREMIER INDUSTRIAL TECHNOLOGY COMPANY 5-YEAR GOALS • Leading provider of trusted technology solutions to secure, detect, and authenticate our customer’s most valuable assets ~$3B Sales • Durable, resilient business growing at ~MSD with best-in-class margins and free cash flow conversio
Slide 16: Appendix
APPENDIX
Slide 17: Non-GAAP Explanation
NON-GAAP EXPLANATION Crane NXT, Co. reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow a
Slide 18: Non-GAAP Explanation
NON-GAAP EXPLANATION 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 w
Slide 19: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. (A BUSINESS OF CRANE HOLDINGS, CO.) (unaudited, in millions, except per share data) Three Months Ended March 31, 2023 Adjusted Operating Profit and Adjusted Operating Profit Margin $ Per Share Net sales (GAAP) $ 329.1 Operating profit (GAAP) $ 65.9 Oper
Slide 20: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. (A BUSINESS OF CRANE HOLDINGS, CO.) (unaudited, in millions) Crane Payment Three Months Ended March 31, 2023 Innovations Crane Currency Corporate Total Company Net sales $ 223.8 $ 105.3 $ — $ 329.1 Operating profit (loss) (GAAP) $ 61.8 $ 17.6 $ (13.5) $
Slide 21: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. (A BUSINESS OF CRANE HOLDINGS, CO.) (unaudited, in millions, except per share data) Three Months Ended March 31, Cash Flow Items 2023 Cash provided by operating activities (GAAP) $ 35.5 Less: Capital expenditures (4.0) Free cash flow $ 31.5 Transaction
Slide 22: Other Reconciliations for Crane NXT, Co.
OTHER RECONCILIATIONS FOR CRANE NXT, CO. (A BUSINESS OF CRANE HOLDINGS, CO.) Revenue (unaudited, in millions) Three Months Ended March 31 Change 2023 2022 $ % Net sales $329 $333 $ (4) (1)% Core sales 9 3% Foreign exchange (12) (4)% 22
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