CIRCOR International — Q3 2016 Earnings Presentation
11 slides from CIRCOR International's earnings presentation, Oct 28, 2016
Slide 1: Third Quarter 2016 Investor Review
Cc | R Cc (e) R Energy | Aerospace & Defense YY Third Quarter 2016 Investor Review Presented October 28, 2016
Slide 2: Safe Harbor
03.2016 Investor Review A CIRCOR ky Safe Harbor This presentation contains forward-looking statements within the meaning of Section 27A of the Securities. Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance should not be placed on forward-looking sta
Slide 3: Critical Flow Solutions (CFS) Overview
Critical Flow Solutions (CFS) Overview Key Transaction Drivers + Differentiated technology and leading positions in niche markets + Strong patent protection + Diversification of CIRCOR’s revenue base + Increased exposure to high margin aftermarket sales with large installed base + Significant cost s
Slide 4: CIRCOR Group Simplification
CIRCOR Group Simplification + Better aligns organization with end markets — Customers and channels better aligned with commercial teams - Facilitates customer intimacy - Targeted growth priorities + Creates a more focused ‘Energy’ segment —- Includes recent acquisition of CFS - Primarily serves the
Slide 5: CIRCOR Group Simplification
CIRCOR Group Simplification TODAY New Segments Energy Segment (75%) Energy Segment (60%) Power Aerospace & Defense Segment (25%) Advanced Flow Solutions Segment (40%) 03.2016 Investor Review Val CIRCOR |
Slide 6: Q3 2016 Energy Segment Highlights
03.2046 Investor Review A CIRCOR Ve. Q3 2016 Energy Segment Highlights ($ millions) Adjusted" | YOY Change* Net revenues 99.8 99.8 (19%) Operating income 77 11.4 (7.6) Crenitiog mean 7.7% 11.4% (400) bps + Revenues decreased 19% — Lower upstream distributed valve and instrumentation sales —- Large i
Slide 7: Q3 2016 Aerospace & Defense Segment Highlights
Q3 2016 Aerospace & Defense Segment Highlights (§ millions) Net revenues 35.0 35.0 (4%) Operating income 2.3 3.4 0.1 Operating margin 6.7% 9.7% 60 bps + Revenues decreased 4% - 1% decline excluding unfavorable FX of $0.8 million —- Lower defense program shipments - Higher fluid controls sales + Adju
Slide 8: Q3 P&L Highlights
Q3 P&L Highlights (in millions, except per share data) Q3 2016 Q3 2015 Restructuring Restructuring Reported —_—& Special Reported _& Special GAAP ‘Charges GAAP Charges ‘Sales 1348 = 1593 a ‘Operating income (Loss) 35 ar @5) 197 Net interest (expense) (06) a 7) = ‘Other (Expense) Income (02) : 06 = P
Slide 9: Cash Flow and Debt Highlights
Cash Flow and Debt Highlights (S$ millions) Q3 YTD 2016 FY 2015 Cash Flow from Operations 39.0 DTA Capital Expenditures, net (9.6) (10.5) Free Cash Flow 29.4 16.6 2-Oct-16 31-1 ee Total Debt 92.4 Cash and Cash Equivalents 84.9 ae Net Debt TES 36.0 Net Debt to Equity 2% 9% 03.2016 Investor Review A C
Slide 10: Q4 2016 Guidance as of October 28, 2016
Q4 2016 Guidance as of October 28, 2016 (S millions, except per share data) Q4 2016 Low High Net Revenue $145 $155 Expected Adjusted Earnings Per Share $0.35 $0.45 Expected Special / Restructuring Charges Per Share: - Restructuring charges ($0.02) ($0.01) - Special charges — M&A related ($0.12) ($0.
Slide 11: Restructuring Actions Summary
03 2016 Investor Review A CIRCOR ee Restructuring Actions Summary ($ millions) Annualized 2016 2017 Savings Savings Savings Status Actions Announced in 2016 6 2 4 Ongoing Actions Announced in 2015 2 9 - Complete A&D California Machining Center 3 1 2 Complete Brazil (Operating loss) 4 4 - Complete Ch