Itt Inc. · NYSE:ITT
Itt — ITT Industries — Credit Suisse First Boston/Aviation Week & Space Technology Aerospace and Defense Finance (May 2002)
13 slides from Itt's conference presentation, May 14, 2002
Slide 1: Lou Giuliano, Chairman, President and CEO
Lou Giuliano Chairman, President and Chief Executive Officer Credit Suisse First Boston/Aviation Week & Space Technology Aerospace and Defense Finance Conference May 14, 2002
Slide 2: ITT Industries Today
ITT Industries Today Revenue Profile Geographic Profile (2001: $4.68 Billion) Other Asia 8% Fluid Technology Defense Pacific 39% Electronics 6% & Services United States 28% 60% Europe 26% Electronic Motion & Components Flow Control 14% 19% 1
Slide 3: ITT Management System
ITT Management System ™ Portfolio Consistent Management Results • Value-Based Management • Long-Term Targets • Invest in Strong Cores • Grounded Forecasts • Global Market • Contingency Plans Development • In-Depth Operational • Ongoing Transformation Reviews Operational Growth Leadership Excellence
Slide 4: Summary Financial Data: 1998 – 2001
Summary Financial Data: 1998 – 2001 Revenues ($mm) Segment Operating Margin $4,632 $4,829 $4,676 $4,434 11.3% 11.7% 10.1% 8.7% 1998 1999 2000 2001 1998 1999 2000 2001 Earnings Per Share Free Cash Flow ($mm) $2.94 $3.05 $303 $2.53 $234 $1.25 $115 ($24) 1998 1999 2000 2001 1998 1999 2000 2001 Note: Al
Slide 5: Invest in Strong Cores
Invest in Strong Cores Growth • Value-Based Product Development • Adjacent Acquisitions • Geographic Market Expansion Defense Electronics Water & Wastewater Electronic Components & Services • Pump Technology • Space • Connectors • Biological Treatment • Communications • Switches & Keypads • System S
Slide 6: Defense Profile
Defense Profile Defense Revenue Prime Contractor Revenues Radars Airborne O&M EW 5% Services 11% 21% Prime 78% Satellite Payloads Engineering 12% 8% Services 13% 16% Night 22% Vision 14% Subcontractor Advanced Engineering Tactical Communications Global Profile Contract Types United States Cost Plus
Slide 7: Defense Financial Performance
Defense Financial Performance Backlog ($Billion) Revenues $1,414 $1,335 $1,410 $1,305 $2.8 $2.6 $2.4 $1.8 1999 2000 2001 2002E 1999 2000 2001 2002E Operating Income Operating Margin $141 10.0% $124 9.5% $117 8.8% $109 7.7% 1999 2000 2001 2002E 1999 2000 2001 2002E Note: All Actual Figures As Reporte
Slide 8: Recent Contract Wins
Recent Contract Wins Segment Contract Description Value Electronic Warfare SIRFC EW suite for rotary wing aircraft $45 IDECM EW system for fixed-wing aircraft – initial production $75 Tactical Bowman Tactical Internet – UK Armed Forces $400 Communications Nexcom Air Traffic Control Communications -
Slide 9: Potential for Future Growth
Potential for Future Growth DoD Budget $120 Procurement $100 RDT&E $80 $60 $40 $20 $0 1999 2000 2001 2002 2003 2004 2005 2006 2007 Proposed Budget Increases ITT Technologies Special Operations +94% • Satellite ground networks Precision Guided Munitions +63% • Space-based navigation, sounding, and im
Slide 10: Future Opportunities
Future Opportunities Segment Program Description ITT Technologies Electronic AIDEWS Advanced Integrated Defensive Suite Integrated radar warning Warfare For International F-16 & RF countermeasures IDECM Additional platforms including B-1B EW Suite SIRFC Cobra, Comanche, Apache New Use of existing te
Slide 11: Future Opportunities
Future Opportunities Segment Program Description ITT Strengths Space GPS III Design & build next generation GPS Navigation payloads navigation & communication instruments Anti-jam signal generation Data encryption ABI/ABS Design & build next generation Interferometric instrumentaiton geostationary i
Slide 12: ITT Defense Characteristics
ITT Defense • Strong Core in ITT Portfolio • Record Backlog Provides Visibility • Strong ROIC Characteristics • Continued Growth Opportunities 11
Slide 13: ITT Industries
& ITT Industries