Slides
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CJS Securities 25th Annual “New Ideas for the New Year” Conference January 14, 2025 NYSE: CXT
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FORWARD-LOOKING STATEMENTS – DISCLAIMER 2 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, belief, or expectations. Words such as “anticipate(s),” “expect(s),” “intend(s),” “believe(s),” “plan(s),” “may,” “will,” “would,” “could,” “should,” “seek(s),” and similar expressions, or the negative of these terms, are intended to identify such forward-looking statements. These statements are based on management’s current expectations and beliefs and are subject to a number of risks and uncertainties that could lead to actual results differing materially from those projected, forecasted or expected. The Company assumes no (and disclaims any) obligation to revise or update these statements to reflect future events or circumstances. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, it can give no assurance that its expectations will be attained. The Company cautions investors not to place undue reliance on any such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from the Company's expectations include, but are not limited to: changes in global economic conditions (including inflationary pressures) and geopolitical risks, including macroeconomic fluctuations; demand for its products, which is variable and subject to factors beyond its control; fluctuation in the prices of, or disruption in its ability to source, components and raw materials, and delays in the distribution of its products; information systems and technology networks failures, breaches in data security, theft of personally identifiable and other information, and non-compliance with its contractual or other legal obligations regarding such information; risks associated with conducting a substantial portion of its business outside the U.S.; being unable to successfully develop and introduce new products, which would limit its ability to grow and maintain its competitive position; loss of personnel or being able to hire and retain additional personnel needed to sustain and grow its business as planned; being unable to identify or complete acquisitions, or to successfully integrate the businesses the Company acquires; governmental regulations and failure to comply with those regulations; risks from litigation, claims and investigations, including those related to product liability and warranties, and employee, commercial, intellectual property and environmental matters; risks related to its ability to improve productivity, reduce costs and align manufacturing capacity with customer demand; the ability to protect its intellectual property; significant competition in the Company's markets; adverse impacts from intangible asset impairment charges; additional tax expenses or exposures; inadequate or ineffective internal controls; and risks related to the Separation, including not obtaining the intended tax treatment of the Separation transaction, failure of Crane Company to perform under the various transaction agreements and actual or potential conflicts of interest with Crane Company. 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, 2023 and the other documents Crane NXT, Co. and its subsidiaries file from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements.
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3 CRANE NXT – A PREMIER INDUSTRIAL TECHNOLOGY COMPANY • Leading provider of trusted technology solutions to secure, detect, and authenticate our customers’ most valuable assets • Launched in April 2023 from separation of Crane Holdings, Co. • Best-in class margins and free cash flow; strong balance sheet • Utilize the Crane Business System (CBS) to drive continuous improvement • Following disciplined capital allocation process to diversify the portfolio; focused on differentiated positions in niche markets aligned to secular growth trends ~$1.5B 2024 Sales* ~27% Adj. Segment Operating Margin* ~45% Recurring and Reoccurring Revenue* ~1.7x Net Leverage** * 2024 sales and adjusted segment operating margin based on full year 2024 guidance ** Net leverage as of September 30, 2024 Technology leader in niche markets with best-in-class financials
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BROAD GEOGRAPHIC DIVERSITY AND RESILIENT CUSTOMER BASE 4 ~65% of customers have been with the business more than 20 years SALES BY SEGMENT* SALES BY GEOGRAPHY* ~60% ~60% ~15% ~20% ~5% North America ROWSecurity & Authentication Technologies Western Europe SALES BY CUSTOMER TENURE** ~40% ~15% ~20% ~25% 20–50 Years 100+ Years<10 Years 10-20 Years ~40% * Metrics represent proforma view of 2024 ** Top 30 Customers Emerging Markets CPI
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Crane Payment Innovations 2024 Sales* ~$870M ALIGNING THE PORTFOLIO TO SECULAR GROWTH MARKETS Reportable Segments Businesses Operating Discipline Accelerating evolution of the portfolio through disciplined M&A Security & Authentication Technologies 2024 Sales* ~$620M * 2024 sales based on full year 2024 guidance (Security and Authentication Technologies includes ~8 months of OpSec expected revenue). Does not include the results of De La Rue Authentication Solutions which is expected to close in 1H 2025, subject to customary closing conditions. Crane Business System (CBS) Providing trusted technology solutions to secure, detect and authenticate what matters most 5 Authentication Closing 1H25Closed 2Q24
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CRANE NXT VALUE CREATION FORMULA Compounding value creation from growth and margin expansion 6 Resilient core business with differentiation Strong FCF Conversion Disciplined Capital Allocation M&A Focused on Secular Growth Markets CBS to drive continuous improvement Competitive Dividend Net Leverage <3.0 Strategic Share Repurchases • Investing in core business to capitalize on opportunities to enhance organic growth • Continuously utilizing Crane Business System (CBS) to improve margins and generate high FCF • Deploying capital to purposefully diversify and move the portfolio to end markets with secular growth trends • Maintaining strong balance sheet while returning capital to shareholders via competitive dividend
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7 BUILDING A PREMIER INDUSTRIAL TECHNOLOGY COMPANY Secure Detect Authenticate • Strong Q3 performance, ~14% revenue growth and ~5% core revenue growth • Utilizing Crane Business System (CBS) to drive operational performance and integrate OpSec acquisition • Executing on strategy to build leadership position in higher growth, adjacent end markets aligned to secular growth trends • Net leverage at ~1.7x; capacity and strong funnel for continued M&A Positioned for significant shareholder value creation