Crane Company · NYSE:CR
Crane — Crane Co. 2022 Investor Conference
26 slides from Crane's conference presentation, Mar 30, 2022
Slide 1: Aerospace & Electronics
AEROSPACE & ELECTRONICS John Higgs President, Crane Aerospace & Electronics
Slide 2: High Visibility to Long Term Growth
HIGH VISIBILITY TO LONG TERM GROWTH Crane A&E Sales Growth $1,500 Actual 7% CAGR 9% CAGR $1,300 $ Millions $1,100 $900 $700 $500 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Our positions on market leading platforms, continued new program wins, and technology investment will driv
Slide 3: Large and Growing End Markets
LARGE AND GROWING END MARKETS Long-term market fundamentals are strong Commercial Defense Space 44,000 Aircraft $112 Billion New commercial deliveries 2021–2040 2022 DoD Research, Development, Test & Evaluation 4.0% CAGR $141 Billion Traffic growth (RPK) 2021–2040 Component Maintenance, Repair & Ove
Slide 4: Strong Near-Term Outlook
STRONG NEAR-TERM OUTLOOK 2021 Sales Segment Sales 2018 2019 2020 2021 2022G Commercial Commercial 3% 5% (37%) 2% 16% Aftermarket 16% Defense 10% 12% 17% (7%) (1%) Military Aftermarket 10% Total OEM 7% 7% (16%) (3%) 8% OEM Commercial 36% Segment Sales 2018 2019 2020 2021 2022G OEM Military Commercial
Slide 5: Positioned to Outgrow Underlying Markets
POSITIONED TO OUTGROW UNDERLYING MARKETS 5
Slide 6: Continued Innovation and R&D Driving Growth
CONTINUED INNOVATION AND R&D DRIVING GROWTH Bi-directional power High voltage DC smart High accuracy proximity conversion to support pumps for coolant and sensors to support more hybrid drivetrains fuel systems connected aircraft 6
Slide 7: Deep and Strong Core Competencies
DEEP AND STRONG CORE COMPETENCIES Core A&E Capabilities ▪ Power conversion Power ▪ EMI design and assembly Solutions Sensing ▪ Condition and position sensing Systems ▪ Pressure and flow measurement ▪ Flow management Fluid & Thermal ▪ Liquid cooling Management Landing ▪ System control algorithms Syst
Slide 8: Multiple High-Confidence Growth Drivers
MULTIPLE HIGH-CONFIDENCE GROWTH DRIVERS 10 Year Market Growth ($M) $1,300 $1,100 $900 $700 Base Existing base business $500 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 8
Slide 9: Multiple High-Confidence Growth Drivers
MULTIPLE HIGH-CONFIDENCE GROWTH DRIVERS 10 Year Market Growth ($M) $1,300 $1,100 Core Expanding core $900 expansion $700 Base Existing base business $500 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 9
Slide 10: Multiple High-Confidence Growth Drivers
MULTIPLE HIGH-CONFIDENCE GROWTH DRIVERS 10 Year Market Growth ($M) $1,300 New New markets markets $1,100 Core Expanding core $900 expansion $700 Base Existing base business $500 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 10
Slide 11: Broad-Based Commercial Aerospace Presence
BROAD-BASED COMMERCIAL AEROSPACE PRESENCE Boeing 737 MAX Airbus A320neo Boeing 787 Comac C919 Strong positions on nearly all high-volume production platforms 11
Slide 12: Numerous Next-Generation Aircraft Opportunities
NUMEROUS NEXT-GENERATION AIRCRAFT OPPORTUNITIES High voltage DC “smart” pump Next generation lube and scavenge pump Already securing content on next-generation production platforms 12
Slide 13: Well-Positioned in Defense and Space Markets
WELL-POSITIONED IN DEFENSE AND SPACE MARKETS NASA Mars Lockheed Perseverance Martin F-35 rover Lower Tier Air and Missile Defense TPY-4 Radar Sensor (LTAMDS) Strong positions on numerous high-volume production platforms 13
Slide 14: Just a Few of Our Most Recent Wins
JUST A FEW OF OUR MOST RECENT WINS… High reliability – high accuracy US Air Force upgrade of F-16 Power conversion for NASA pressure sensors for engine landing gear braking system Artemis control ▪ Leverage Crane’s silicon on sapphire ▪ Utilize Crane’s proven anti-skid brake ▪ Crane’s proven high re
Slide 15: Key Target Opportunities for Further Share Gains
KEY TARGET OPPORTUNITIES FOR FURTHER SHARE GAINS Low Earth Orbit (LEO) Satellite Urban eVTOL Networks Alternative Electric / Hybrid Propulsion Military Vehicles Aircraft Technology roadmaps aligned with major areas of expected market growth 15
Slide 16: Continuing to Invest for the Future
CONTINUING TO INVEST FOR THE FUTURE ▪ Pioneering advanced power conversion Empowering an efficient & sustainable ▪ Modular motor controls suite “Electric World” ▪ Thermal management systems 16
Slide 17: Continuing to Invest for the Future
CONTINUING TO INVEST FOR THE FUTURE ▪ Pioneering advanced power conversion Empowering an efficient & sustainable ▪ Modular motor controls suite “Electric World” ▪ Thermal management systems ▪ Micro-multifunction modules for LEO constellations Enabling space exploration ▪ Modular hybrid power convert
Slide 18: Continuing to Invest for the Future
CONTINUING TO INVEST FOR THE FUTURE ▪ Pioneering advanced power conversion Empowering an efficient & sustainable ▪ Modular motor controls suite “Electric World” ▪ Thermal management systems ▪ Micro-multifunction modules for LEO constellations Enabling space exploration ▪ Modular hybrid power convert
Slide 19: Thermal Management Opportunities
THERMAL MANAGEMENT OPPORTUNITIES Leverage historical success and core capabilities to enter new markets Increasing electrical systems require liquid cooling Addressable market growing 37% 2022 – 2031 19
Slide 20: Power Conversion Opportunities
POWER CONVERSION OPPORTUNITIES Leverage current broad-based offerings and capabilities to enter new markets Current demand for high power electronic warfare and LEO satellite constellations Developing high power Created standard products systems for future defense for advanced air mobility 5 Watts 2
Slide 21: Sensing Opportunities
SENSING OPPORTUNITIES Extended long-range wireless facilitates increased data usage and reduce wiring weight Future engine applications demand increased accuracy and reliability Advanced sensing to address alternative fuel developments 21
Slide 22: High Visibility to Long Term Growth
HIGH VISIBILITY TO LONG TERM GROWTH Crane A&E Sales Growth $1,500 Actual 7% CAGR 9% CAGR $1,300 $ Millions $1,100 $900 $700 $500 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 Our positions on market leading platforms, continued new program wins, and technology investment will driv
Slide 23: Growth Through Adjacencies
GROWTH THROUGH ADJACENCIES Core A&E Capabilities Organic ▪ Power conversion ▪ EMI design and assembly ▪ Condition and position sensing ▪ Pressure and flow measurement ▪ Flow management Adjacencies ▪ Liquid cooling Acquisition ▪ System control algorithms ▪ Electric and hydraulic actuation ▪ High freq
Slide 24: Investing in Continuous Improvement
INVESTING IN CONTINUOUS IMPROVEMENT Leveraging Crane Business System to drive efficiencies 5.2% sales per head improvement in 2022 111 Kaizens in 2021 27 new Kaizen (34% annual increase) tool champions 24
Slide 25: Well Positioned for Profitable Long-Term Growth
WELL POSITIONED FOR PROFITABLE LONG-TERM GROWTH ▪ Differentiated and best-in-class technology in large, growing markets ▪ Extremely strong position on existing high-volume platforms ▪ Technology roadmap positions us well for next- generation aircraft, engines and defense systems ▪ Crane Business Sys
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