CIRCOR International — Q4 2018 Earnings Presentation
15 slides from CIRCOR International's earnings presentation, Feb 27, 2019
Slide 1: Fourth Quarter 2018 Investor Review
Energy G | R G oO R Aerospace & Defense Industrial Fourth Quarter 2018 Investor Review Presented February 27, 2019
Slide 2: Safe Harbor
ZY Safe Harbor SiReoR This presentation contains forward-looking statements within the meaning of Section 27 A of the Securities Act of 1933, as amended, and Section 21 E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward- looking statements because they inv
Slide 3: Q4 2018 Results
Q4 2018 Results C7 ($ millions, except EPS) Orders Net Revenue EPS GAAP Adjusted” $297 $301 $0.62 $0.57 42017 242018 Q4 2017 24.2018 +2017 | 4.2018 4.2017 42018 Organic “14% Organic 7% lAcquisition 51% |Acquisition 41% $(0.32) FX -1% FX -1% Total 37% _| [Total 47% | $(1.06) EPS: (Loss) Per Share or
Slide 4: Q4 2018 Orders: Year-over-Year Comparison
: CIRCOR Q4 2018 Orders: Year-over-Year Comparison e ($ millions) Reported Corbina” $ % $ 2017 2165 295.3 Organic (29.2) -14% 54 2% Acq/ Div 1113 51% 14 0% FX (1.9) -1% 5) 2% Total change 80.1 37% 1.3 0% 2018 2966 296.6 | _industrial Reported sina Repose cote enor esti $ % $ % $ % $ % $ % $ % 2017 4
Slide 5: Q4 2018 Revenue: Year-over-Year Comparison
Q4 2018 Revenue: Year-over-Year Comparison we (8 millions) | CIRCOR Reotet connie $ % $s % 2017 205.6 298.6 ‘Organic 135 T% 124 4% Acq/Div 843 41% (39) 1% FX (20) 1% (65) 2% Total change 958 47% 27 % 2018 3014 301.4 a $ % $ % s % $ % $ % $s % 2017 524 124.5 966 110.2 87.0 63.9 Organic 39 1% 30 2% 13
Slide 6: Industrial Segment Highlights
ZN Industrial Segment Highlights Cree (8 millions) Pro Forma Pro Forma Q4 2018 Reported Combined Reported Combined Net Revenues 120.6 52.1 1245 68.5 (4.0) Segment Operating Income 14.7 5.0 36 I 11.41 Segment Operating Margin 12.2% 9.6% 29% 260 bp 930 bp Comments on YOY Proforma Results Q4 2018 Reven
Slide 7: Energy Segment Highlights
ZN Energy Segment Highlights peaee ($ millions) Pro Forma Pro Forma Q4 2018 — Combined Reported Combined Net Revenues 117.4 110.2 20.9 Segment Operating Income 9.4 86 9.4 08 - Segment Operating Margin 8.0% 8.9% 8.6% -90 bp -60 bp Comments on YOY Proforma Results Q4 2018 Revenues Q4 2018 Segment Oper
Slide 8: Aerospace & Defense Segment Highlights
ZN . . CIRCOR Aerospace & Defense Segment Highlights ww (S$ millions) YOY Chai Pro Forma Pro Forma Q4 2018 Reported Com Reported Combined Net Revenues 63.3 57.0 63.9 63 (0.6) Segment Operating Income 11.4 10.9 10.5 05 0.9 Segment Operating Margin 18.0% 19.1% 16.5% -110 bp 150 bp Comments on YOY Prof
Slide 9: Q4 P&L Selected Items
Q4 P&L Selected Items Cees ($ millions, except EPS) Q4 2018 Q4 2017 Special &@ | i Special & H Reported Restructuring | t Reported Restructuring | | GAAP Charges | Adjusted _! GAAP Charges | Adjusted | i i i H Net Revenue 3014 wef 3014 | 205.6 ef 205.64 H I I i i i I i Operating (Loss) Income 63 212
Slide 10: Cash Flow and Debt Position
Cash Flow and Debt Position ca ($ millions) Cash Flow from Operations 26 8 Capital Expenditures, net (6) (6) Free Cash Flow 20 2 Total Debt 30-Dec-18 30-Sep-18 786 810 Cash and Cash Equivalents 68 71 Net Debt 718 739 Net Debt to Equity 135% 129% Note: Total debt is comprised of current and long-term
Slide 11: End Market Overview
End Market Overview A CIRCOR 4 Segment Trends Outlook Industrial Continued growth in global capital spending driving demand for machinery Chemical processing strength in N. America and Asia Energy efficiency initiatives driving equipment growth Ongoing strength in N. America Early signs of softness
Slide 12: Q1 2019 Guidance as of February 27, 2019
Z7N Q1 2019 Guidance as of February 27, 2019 peas (millions, except per share amounts) Q1 2019 Low High Net Revenue $ 245 $ 260 Expected Adjusted Earnings Per Share $ 0.32 $ 0.42 Expected Special / Restructuring Charges per share: - Special & Restructuring Gains (Charges) $ 0.05 $ 0.07 - Special Cha
Slide 13: Use of Non-GAAP Financial Measures
ZN Use of Non-GAAP Financial Measures ies Within this presentation the Company uses non-GAAP financial measures, including Adjusted operating income, Adjusted operating margin, Adjusted net income, Adjusted earings per share (diluted), EBITDA, Adjusted EBITDA, net debt, free cash flow, organic growt
Slide 14: Appendix
C RCOR sp) APPENDIX
Slide 15: Group Structure
IRCOR Group Structure oS ean CIRCOR by End Market ENERGY INDUSTRIAL A&D Marine Sales Mix Product Lines Up/Midstream| Downstream Distributed Valves Refinery Valves Instrumentation & Sampling Engineered Valves Industrial EMEA (Pumps & Valves) Industrial Americas (Pumps & Valves) Commercial Marine (Pum