brad ellis, senior vice president · breakthrough opportunity –transducer portfolio ... grow...
TRANSCRIPT
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Fluid Handling
Brad Ellis, Senior Vice President
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FLUID HANDLING
Results & Guidance
Market Outlook
Delivering Share Gain
Expanding Margins
Summary
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United States36%
Western Europe
24%
Canada20%
Emerging Markets
17%
Developed Asia-Pacific
3%General
Industrial26%
Chemical22%Oil & Gas /
Power20%
Non-Residential
Construction / Municipal
32%
FluidHandling
34%
FLUID HANDLING
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• IMPRESSIVE 2019 RESULTS: 4% CORE GROWTH, 190 BPS MARGIN* EXPANSION AND 18%
OPERATING PROFIT* IMPROVEMENT
($ Millions) 2016 2017 2018 2019 2020G
Sales 999 1,043 1,102 1,117 1,185
Operating Profit* 109 115 129 152 166
Operating Margin* 10.9% 11.1% 11.7% 13.6% 14.0%
*Excludes Special Items. Please see non-GAAP Financial Measures tables for details.Note: Charts based on 2019 actual results.
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FLUID HANDLING
Results & Guidance
Market Outlook
Delivering Share Gain
Expanding Margins
Summary
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% Crane FH
2019 Sales
2019
Actual
Midterm
Outlook
22%
26%
20%
32%
End Markets
Chemical
Oil & Gas / Power
Non-Residential Commercial /Municipal
General Industrial
Total
FLUID HANDLING MARKET — POSITIVE OUTLOOK
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FLUID HANDLING
Results & Guidance
Market Outlook
Delivering Share Gain
Expanding Margins
Summary
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HOW WE ARE DRIVING SHARE GAIN
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ProductInnovation
CommercialExcellence
Localization
2X’16–’19
GROWTH RATE
VS. PEERS
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DELIVERING SHARE GAINS
•ON TRACK TO DELIVER ON PREVIOUSLY HIGHLIGHTED PRODUCT LAUNCHES
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$50MBy 2023
$25MBy 2023
$20MBy 2023
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Triple Offset Valve Large Diameter PipeChopper Pump
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BREAKTHROUGH OPPORTUNITY – METAL SEATED BALL VALVE
•EXPECTING $15M GROWTH BY 2025 IN $475M MARKET
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BREAKTHROUGH OPPORTUNITY – HIGH EFFICIENCY MOTOR
•EXPECTING $15M GROWTH BY 2025 IN $260M LIFT STATION MARKET
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BREAKTHROUGH OPPORTUNITY – TRANSDUCER PORTFOLIO
•EXPECTING $15M BY 2023 IN $395M MARKET
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Installed base
4Munits
MECHANICAL
PRESSURE SWITCH
ELECTRONIC
PRESSURE
TRANSDUCER
Higher
GROWTH
Oil & GasAgricultural Equipment
Mobile Hydraulics
Factory Automation
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DRIVING SHARE GAIN – LOCALIZATION
•GROWTH MARKETS & SHARE GAIN THROUGH LOCALIZATION: $13M BY 2022
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India China Middle East
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»EXTENDIBILITY FOR CRANE
SP
AC
E A
TT
RA
CT
IVE
NE
SS
HIGHERLOWER
LO
WE
RH
IGH
ER
ATTRACTIVE BUSINESS PLATFORM FOR INORGANIC GROWTH
•CBS AND STRUCTURAL SYNERGIES DIFFERENTIATOR TO ACCELERATE DEALS
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Consolidation / Near Adjacency
Process Valves
Water / Wastewater Pumps
Process Pumps
Fluid Sensing
Pharma Flow Components
New Platform Opportunities
1
2
3
4
5
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CIRCOR INSTRUMENTATION & SAMPLING ACQUISITION
GROW BOTTOM LINE THROUGH CBS CADENCE, SALES SYNERGIES, MANUFACTURING
EFFICIENCY, PROCUREMENT SAVINGS, & WORKING CAPITAL IMPROVEMENTS 14
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FLUID HANDLING
Results & Guidance
Market Outlook
Delivering Share Gain
Expanding Margins
Summary
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BACK TO MID-TEEN MARGINS
•ACHIEVING 100 BPS AVERAGE MARGIN IMPROVEMENT PER YEAR
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6%
8%
12% 12%13%
15%
11%12%
14%
600
700
800
900
1,000
1,100
1,200
1,300
1,400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020G
Sales Margins
Global Recession Oil Price
Weakens
*Excludes Special Items. Please see non-GAAP Financial Measures tables for details.
Fluid Handling Sales ($ Millions) and Margin %*
»5.9% 6.3% 8.1% 10.7% 12.1% 13.9% 11.8% 11.9% 12.7% 13.4% 15.0% 14.8% 11.6% 10.9% 11.1% 11.7% 13.6% 14.0%
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EXPANDING MARGINS THROUGH REPOSITIONING
•ON TRACK TO DELIVER $25M COST SAVINGS BY 2022
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Restructuring in Europe
Consolidating two facilities to existing plants in US, India, and Mexico➔
➔
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Crane Strategic Sourcing Process
EXPANDING MARGINS THROUGH STRATEGIC SOURCING
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Castings
Machined Parts
Plastic Injection Molding
PCBA
$90M $106M
$67M$85M
SpendAnalysis
NPDRoadmap
Product Business Models
Commodity Strategy Process
CommodityAnalysis
CommoditySummary
SupplierStrategy
ProjectFunnel
ActiveProjectDeck
Resourceor Develop
EvaluateSupplier Performance
Continuous Improvement Process
Resource
Develop
Sourcing Tollgate Process
Validation& Strategy
SupplierSearch & RFQ
SupplierSelection
& LTA
Part/Process
Qualification
SupplierOn-boarding
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REDUCED ENVIRONMENTAL IMPACT THROUGH AUTOMATION
•REDUCED CARBON FOOTPRINT, COST, OPERATOR BURDEN AND PART VARIATION
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GIVING BACK AND SUPPORTING LOCAL COMUNITIES
•PAID TIME TO VOLUNTEER FOR ALL GLOBAL ASSOCIATES
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FLUID HANDLING
Results & Guidance
Market Outlook
Delivering Share Gain
Expanding Margins
Summary
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SUMMARY
•DELIVERING TODAY WHILE INVESTING IN THE FUTURE
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STRONG Execution and 2019 Results1
ACCERLATING Share Gains2
EXCEEDING 100 BPS Average Margin Improvement per Year3
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» www.craneco.com