ITT Inc. · NYSE:ITT
ITT — ITT Industries — Wachovia Securities 16th Annual Nantucket Equity Conference (June 2006)
11 slides from ITT's conference presentation, Jun 20, 2006
Slide 1: Wachovia Securities 16th Annual Nantucket Equity Conference
Wachovia Securities 16th Annual Nantucket Equity Conference George Minnich Senior Vice President & CFO June 20, 2006
Slide 2: Forward Looking Statements
Forward Looking Statements “Safe Harbor Statement” under the Private Securities Litigation Reform Act of 1995 (“the Act”): Certain material presented herein includes forward-looking statements intended to qualify for the safe harbor from liability established by the Act. These forward-looking statem
Slide 3: ITT Industries - Today
ITT Industries - Today REVENUE PROFILE (2005 $7.4 Billion) • Multi-Industry Company with Outstanding Organic Growth Fluid Defense • 2004 & 2005 Achieved 12% Technology Electronics Organic Revenue Growth 38% & Services 43% • Leading Positions in Attractive Electronic Motion & Markets with Long-Term G
Slide 4: Consistent Financial Performance
Consistent Financial Performance REVENUES ($mm) SEGMENT OPERATING MARGIN $7,975 12.3% 12.2% $7,389 11.6% 11.5% 11.8% $6,293 $5,130 $4,464 2002 2003 2004 2005 2006E 2002 2003 2004 2005 2006E EARNINGS PER SHARE FREE CASH FLOW CONVERSION $2.91-2.97 163% $2.59 $2.16 123% 126% $1.69 $1.80 104% 105% 100%
Slide 5: Fluid Technology
Fluid Technology 2005 REVENUE - $2.8B WATER/WASTEWATER - REVENUE Water/ $1,955 +$2,100 Waste Water 68% $1,777 $1,449 $1,189 Building Trades 11% Industrial & Biopharm 21% 2002 2003 2004 2005 2006E POSITION OF STRENGTH • Leading Water/Wastewater Equipment Supplier • Premier Brands – several +100 years
Slide 6: Global Water Vision – $45 Billion Equipment Market
Global Water Vision – $45 Billion Equipment Market DISINFECTION DISTRIBUTION RESIDENTIAL PUMP STATIONS FILTRATION COMMERCIAL WASTEWATER TREATMENT PLANT MBR INDUSTRIAL SLUDGE INTAKE MANAGEMENT STATIONS DESALINATION DISINFECTION WELL SURFACE SALT MBR WATER WATER WATER Opportunities OpportunitiesAvaila
Slide 7: Defense
Defense 2005 REVENUE - $3.2B REVENUE ($Billion) Satellite $3.6 Payloads O&M Services 20% 23% $3.2 Electronic $2.4 Systems $1.8 11% Engineering $1.5 Services 10% Night Vision 10% Advanced Engineering Tactical 9% Communications 2002 2003 2004 2005 2006E 17% GROWTH DRIVERS • Special Ops and Joint Effor
Slide 8: Significant Market Expansion Opportunities
Significant Market Expansion Opportunities ITT Night Vision’s Share of ITT Night Vision’s Share of Image Intensification EO/IR Visioning ITT ITT ITT Defense’s Share of DoD Spend ITT A/CD’s Share of Army ITT A/CD’s Share ITT VHF Tactical Comms DoD Comms ITT ITT <1% Total Market Share ITT Systems Shar
Slide 9: Motion & Flow Control and Electronic Components
Motion & Flow Control Electronic Components 2005 REVENUE - $0.7B 2005 REVENUE - $0.7B Friction Connectors Materials 50% 44% Leisure Switches Marine 50% 32% Aerospace Controls Koni/Shocks 11% 13% OPERATING MARGIN OPERATING MARGIN 19.7% 20.4% 18.8% 19.3% 16.7% 11.4% 6.9% 5.7% 4.8% 4.1% 2002 2003 2004
Slide 10: 2006 Guidance
2006 Guidance 2006 Q2 2006 Outlook Fluid Technology $740 – 750 $2,985 – 3,025 Margin 13.2 – 13.4% 12.9 – 13.0% Defense Electronics $890 – 900 $3,550 – 3,580 Margin 11.0 – 11.1% 11.0 – 11.1% Motion & Flow Control $172 – 180 $675 – 695 Margin 21.4 – 21.6% 20.3 – 20.5% Electronic Components $182 – 190
Slide 11: Slide 11
ITT Industries — Wachovia Securities 16th Annual Nantucket Equity Conference (June 2006) on 6ix