Crane Company · NYSE:CR
Crane — Crane Co. 2021 Investor Conference (Virtual)
13 slides from Crane's conference presentation, Feb 25, 2021
Slide 1: Crane Co. Financial Overview
Crane Co. Financial Overview Richard Maue, Chief Financial Officer
Slide 2: Full-Year 2020 Earnings Summary
FULL-YEAR 2020 EARNINGS SUMMARY $ Millions FY 2020 FY 2019 Change except per share amounts Sales* $2,947 $3,283 (10%) Operating Profit** $323 $494 (35%) Operating Margin** 11.0% 15.0% (400 bps) Earnings per Share** $3.84 $6.02 (36%) Free Cash Flow*** $275 $325 (15%) Additional Details FY 2020 FY 202
Slide 3: 2021 Guidance Summary
2021 GUIDANCE SUMMARY $ Millions Change vs. 2020 2021G Change vs. 2020**** except per share amounts Prior Guidance***** Net Sales* $2,947 $3,080 +5% +$25 Earnings per Share** $3.84 $5.00–$5.20 +33% +$0.10 Free Cash Flow*** $275 $265–$295 +2% +$5 Change vs. 2021G Other 2021 Guidance Details Prior Gui
Slide 4: 2021 Segment Guidance
2021 SEGMENT GUIDANCE Core Growth Segment Margin* Change 2020 2021G** 2019 2020 2021G** (2021G vs. 2020) Fluid Handling (15%) +0.5% 13.6% 11.4% 12.5% +110 bps Payment & Merchandising (19%) +6% 16.2% 12.3% 18.5% +620 bps Technologies Aerospace & Electronics (19%) (8%) 24.1% 16.5% 15.0% (150 bps) Engi
Slide 5: Long-Term Financial Expectations by Segment
LONG-TERM FINANCIAL EXPECTATIONS BY SEGMENT Across-the-Cycle Target 2021G* Avg. Core Growth Segment Margin Core Growth Segment Margin** Fluid Handling +2%–4% 13%–18% +0.5% 12.5% Payment & Merchandising +3%–5% 18%–22% +6% 18.5% Technologies Aerospace & Electronics +3%–5% 21%–24% (8%) 15.0% Engineered
Slide 6: Management Cadence and Disciplined Execution
MANAGEMENT CADENCE AND DISCIPLINED EXECUTION • Rigorous, data-driven management cadence • Continuous improvement focused • Highest integrity/commitment to quality • Empowered, customer-focused BU GMs »» • EXTREME ACCOUNTABILITY IN ALL ASPECTS OF OUR BUSINESS 6
Slide 7: Structural Free Cash Conversion Improving
STRUCTURAL FREE CASH CONVERSION* IMPROVING Free Cash Conversion Free Cash Conversion (Excluding Asbestos) 120% 120% 100% 100% Average 111% (2016-2021G) Average 99% Average 99% (2016-2021G) (2010-2015) 80% 80% Average 78% 60% (2010-2015) 60% 40% 40% 20% 20% 0% 0% 2021G 2021G 2010 2011 2012 2013 2014
Slide 8: Driving Significant Savings Through Acquisitions
DRIVING SIGNIFICANT SAVINGS THROUGH ACQUISITIONS ~1.5x-2x Forecast Synergies Actual Synergies Instrumentation & Sampling »» • OVER LAST 10 YEARS, ACQUISITION SYNERGY REALIZATION 1.5-2X ORIGINAL FORECAST 8
Slide 9: Capital Deployment Priorities
CAPITAL DEPLOYMENT PRIORITIES Maintain Investment Grade Credit Rating While Funding: Internal Investments to Acquisitions to Competitive Returns Drive Organic Growth Enhance Growth to Shareholders • Capital Expenditures • Bolt-on transactions in Aerospace & • Competitive returns to Electronics and t
Slide 10: Strong Liquidity Maintained Through Prior Cycles
STRONG LIQUIDITY MAINTAINED THROUGH PRIOR CYCLES $ Millions Industrial Recession $1,104 Great Recession $815 $523 $746 $750 $638 $532 $451 $356 $400 $265 $300 $581 $373 $346 $364 $394 $232 2008 2009 2014 2015 2019 Dec. 31, 2020 Cash and ST Investments Revolver available* 10 * Revolver available redu
Slide 11: M&A Capacity
M&A CAPACITY Cumulative Acquisition Capacity ($ Millions) $2,400 $1,500 $750 $150 Today 2021E 2022E 2023E » » • LIMITED CAPACITY TODAY, BUT GROWING SUBSTANTIALLY OVER NEXT SEVERAL QUARTERS WITH POTENTIAL TO MONETIZE ASSETS AS NEEDED 11
Slide 12: Conclusion Slide
CONCLUSION SLIDE Why Investors Should Have Continued Confidence: » OUTSTANDING OPERATOR WITH DIFFERENTIATED CBS CAPABILITY » PROVEN TRACK RECORD OF DRIVING RESULTS WITH MARKETS POISED FOR RECOVERY » SIGNIFICANT FREE CASH GENERATOR – GIVE ME CREDIT! » DISCIPLINED CAPITAL ALLOCATOR » STRONG BALANCE SH
Slide 13: www.craneco.com
» www.craneco.com