ITT Inc. · NYSE:ITT

ITT — Q2 2011 Earnings Presentation

17 slides from ITT's earnings presentation, Jul 29, 2011

  1. Slide 1: Investor Review Q2 2011

    July 29, 2011 Investor Review Q2 2011

  2. 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.

  3. Slide 3: Q2 ITT Overview

    Q2 ITT Overview Solid Q2 Results; Transformation on Track $1.18 Adjusted EPS* ƒ Nicely Exceeds Prior Guidance Solid Fluid and Motion Results ƒ +26% Fluid Total Revenue +9% Fluid Organic Revenue ƒ +25% Commercial Emerging Market Revenue Growth ƒ +220 bps Motion & Flow Operating Margin Expansion +21%

  4. Slide 4: Transformation Update

    Transformation Update Accelerating Value Creation ƒ Filed Initial Form 10’s – July 11, 2011 ƒ Filed 8-K – July 11, 2011 • Transaction Overview • Capital Allocation Overview • Description of Each New Company ƒ Cost Estimates Remain On-Track ƒ Each New Company Expected to be Consistent with Investment

  5. Slide 5: Q2 ITT Results

    Q2 ITT Results Commercial Strength; Changing Defense Dynamics Q2 Results $ millions, except per share amounts 2011 vs 2010 Revenues $3,024 +10% Segment Operating Income** $364 -1% Segment Operating Margin** 12.0% -140 bps Adjusted EPS* $1.18 +4% +4% Organic Revenue +21% Organic Orders +9% Fluid; +7%

  6. Slide 6: Fluid Technology

    Fluid Technology Strong Revenue; Impressive Acquisition Performance Q2 Results $ millions 2011 vs 2010 Revenues $1,108 +26% Operating Income* $164 +26% Operating Margin* 14.8% 0 bps Restructuring $0 +$3 +9% Organic Revenue +6% Organic Orders (+23% Total) +16% Industrial Process +21% Industrial Proce

  7. Slide 7: YSI Acquisition

    YSI Acquisition* Expands Our Global Analytics Platform Strategic Rationale Geographic Mix Industry Mix ƒ Solidifies Leading Position in RoW Water & Environmental 14% Life Sciences 11% Analytical Instrumentation Europe 11% ƒ History of Revenue Growth North America and Profitability 57% Water & Asia P

  8. Slide 8: Motion & Flow Control

    Motion & Flow Control Solid Revenue Performance; Significant Margin Expansion Q2 Results $ millions 2011 vs 2010 Revenues $414 +14% Operating Income* $57 +36% Operating Margin* 13.8% +220 bps Restructuring - - +7% Organic Revenue +6% Organic Orders +22% Control Technologies +30% Motion Technologies

  9. Slide 9: Defense & Information Solutions

    Defense & Information Solutions Performing Well in Difficult Environment; Margins Diluted by Service Mix Shift Q2 Results $ millions 2011 vs 2010 Revenues $1,503 - Operating Income* $143 -26% Operating Margin* 9.5% -340 bps Restructuring** -$1 +$6 Flat Organic Revenue +47% Funded Organic Orders +43%

  10. Slide 10: 2011 ITT Outlook

    2011 ITT Outlook Maintaining Our Operating Commitment & Executing the Spin Transaction Full Year 2011 Segment Guidance $ billions Revenue 2011 Midpoint vs 2010 Guidance Total Organic Current Segments Motion & Flow Control ~ $1.6 +10% +6.5% Fluid Technology ~ $4.3 +17% +6% Defense & Information Solut

  11. Slide 11: Appendix

    ¥ itt Appendix Q2 2011 Engineered for life

  12. Slide 12: New ITT

    New ITT Q2 Results HIGHLIGHTS $ millions 2011 vs 2010 Revenues $555 +18% ƒ +46% Emerging Market Revenue Orders $572 +19% Q2 vs PY +12% Organic Revenue ƒ Saudi Aramco 7-Year Agreement y Automotive OEM Share Gains & Aftermarket ƒ Industrial Process Pumps ƒ Monitoring Systems & Aftermarket Services y A

  13. Slide 13: Xylem

    Xylem Q2 Results HIGHLIGHTS $ millions 2011 vs 2010 Revenues $971 +25% ƒ Acquisition of YSI Analytics (Pending) Orders $998 +21% ƒ $9M Dewatering Award for Gas Fracking +6% Organic Revenue y Global Light Industrial & Agriculture ƒ $8M India Irrigation Transport Award y Commercial Building Service Ga

  14. Slide 14: ITT Exelis

    ITT Exelis Q2 Results HIGHLIGHTS $ millions 2011 vs 2010 Revenues $1,503 - ƒ APS-5 Additional Task Orders ~$100M Orders $1,135 +48% ƒ K-BOSSS Additional Task Orders ~$50M Flat Organic Revenue y Recent Service Contract Wins ƒ $49M Pakistan Airborne Electronic y Strong Commercial Satellites and GPS Wa

  15. Slide 15: 2011 Adjusted EPS Guidance Rollforward

    2011 Adjusted EPS* Guidance Rollforward Maintaining Our Operating Commitments While Executing Spin Transaction 2011 Adjusted EPS* Previous FY 2011 Guidance Midpoint (April 2011) $ 4.76 Q2 Results vs Prior Guidance Operational Performance (Mainly Defense) $ 0.03 Non Operating Items: Corporate, Intere

  16. Slide 16: Q2 2011 ITT Segment Performance

    Q2 2011 ITT Segment Performance Strong Commercial Productivity Fluid Motion Defense ITT Q2 '11 Total Revenue vs PY 26.3% 14.4% 0.0% 10.4% FX -7.5% -7.2% -0.1% -3.4% Acquisition/Disposition -9.9% 0.0% -0.2% -3.3% Q2 '11 Organic Revenue vs PY 8.9% 7.2% -0.3% 3.7% Q2 '10 Margin 14.8% 11.6% 12.9% 13.4%

  17. Slide 17: Non-GAAP Reconciliations - EPS & FCF

    Non-GAAP Reconciliations - EPS & FCF Q2 % Change EPS - Reconciliation 2010 2011 2011 vs 2010 Total Reported EPS $ 1.28 $ 0.90 -30% Discontinued Operations $ (0.06) Continuing Ops. - Reported EPS $ 1.22 $ 0.90 -26% Continuing Ops. - Special Items: Transformation Costs, Net of Tax $ - $ 0.25 Prior Yea

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