CIR Investor Presentation 11.14
CIR Investor Presentation 11.14
CIR Investor Presentation 11.14
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Within this presentation, both with respect to historical information and future targets, the company uses
non-GAAP financial measures, including adjusted operating margin, adjusted earnings per diluted share,
adjusted operating income, and free cash flow. These measures are intended to serve as a complement to
results provided in accordance with accounting principles generally accepted in the United States. CIRCOR
believes that such information provides an additional measurement and consistent historical comparison of
the Companys performance. A reconciliation of the historical non-GAAP financial measures to the most
directly comparable GAAP measures is available as an appendix to the presentation slides under the
Investors link and Webcasts & Presentations Sublink on the companys website at www.circor.com.
2013
Holding Company
Transition
Operating Company
Acquisition focus
Good products, brands
and markets
Business unit autonomy
Limited integration
Many cultures
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Global market-facing
organization
Consistent priorities: growth,
margin, cash
Pursuit of operational
excellence through CIRCOR
Business System
Acquisitions only with strong
shareholder returns
One CIRCOR culture:
customers, results,
accountability
An engineering and
technology focused company
$858 Million
9.9%
Employees:
~3,000
Enterprise Value:
Energy
~$1.1 Billion
Sales by Industry
Sales by Geography
Latin America
Asia
Aerospace
& Defense
8% 3%
23%
77%
EMEA
37%
52%
North
America
Energy
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Addressable Market
ENERGY
Valves
Downstream
3
Midstream
4
$30 billion
Upstream
16
$8 billion
Actuation
6.5
BGA
30
Flow Control:
~$150 billion
BGA
30
Military
65
$1.1 trillion
$310 billion
Commercial
215
CAPEX 2013
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CAPEX 2013
Energy Sources: Upstream: Morgan Stanley, Midstream: AMR, Power & Downstream: EIF Valve Report
Note: Flow Control includes pumps, valves, monitoring, filtration, systems used in controlling flow of liquids and gas
A&D Source: Forecast International
Note: Military = Aircraft, Missiles =; Commercial, Transport, Regional, Cargo, BGA = Business Jets, General Aviation, Civil Helicopters
A&D Source: Counterpoint intelligence Aerospace Valves and Actuation reports
Upstream
Trends
Strong
Moderate
Mid / Downstream
Strong
Power Generation
Strong
Aerospace
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Weak
Defense
Ball Valves
Instrumentation Valves
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New Organization
Market facing
commercial team
Product technology
aligned operations
and engineering
New Products
Upstream
LNG
Power
Aero & Defense
Global Expansion
Distribution rationalization
Key account management
Feet on the street
Aftermarket
On-time delivery
Lead time reduction
Customer interface
Simplified pricing
Go To Market
Initiatives
Easy To Do
Business
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Simplification
Facilities
Business units
Systems
Suppliers
Product Portfolio
Operational
Excellence
Material Savings
Factory productivity
Shared services
Price
Simple structure
Pocket price focus
Project discipline
Volume Leverage
Organic
Inorganic
Unconventional
Offshore
Offshore
Calgary
Unconventional
Offshore
Unconventional
LNG
Houston
Unconventional
Offshore
LNG
Milan
Beijing
Abu
Dhabi
Conventional
Power
Offshore
Power
Unconventional
Coimbatore
Power
Offshore
Global EPCs
Current
locations
Rio
Recently
Established
Kuala
Lumpur
Offshore
Offshore
LNG
Under
Evaluation
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Control Valves
Severe Service
Instrumentation
Engineered
Ball Valves
Medium
Market Growth
High
Subsea Valves
Turbine By-Pass
Control Valves
LNG Valves
Extreme Temperature
Higher Pressure
Abrasive Mediums
High Reliability
Ball Valves
Low
Low
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Medium
High
Technology
10
Revenue
($M)
Manufacturing
200000
200
180000
180
160000
160
2018 Target
~15
140000
120000
2018 Target
~12
140
120
100000
100
80000
80
60000
24
Facilities
40000
22
Business
Units
60
40
20000
20
Business Units
Facilities
Age of ERP
(years)
Suppliers
18
14
12
10
Suppliers
2,000
16
1,500
2018 Target
~15
1,000
24
ERP Systems
6
4
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P&Ls
2018 Target
~1200 Suppliers
~5000
Suppliers
500
2
0
ERP Systems
Business Units
11
2014
Target
(3-5 Yrs.)
BEST VALUE
SOURCING
Net Productivity*
>1%
~2%/year
# of suppliers
5,011
~1,200
% on contract
8%
~80%
Supplier OTD
48%
95%
Supplier DPPM
>10,000
1,000
Source globally
(Direct Material)
VALUE
ENGINEERING
LEAN
PROCUREMENT
Streamlined purchase
order placement
* Net of inflation
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12
Capital Deployment
Prioritization of Capital Deployment
Internal Investments
Growth
Margin expansion
Working capital
Acquisitions
In markets we understand
Technology bias
High growth market presence a plus
Bolt-on
3
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Share Buybacks
Financial Targets
2018 Financial Targets
TARGET
Organic Sales Growth
4% to 6% CAGR
~15% in 2018
EPS Growth
~15% CAGR
>100%
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14
Sales
EPS
Sales CAGR 4%
EPS CAGR 13%
3.70 *
3.21
2.59
1.97
2.13
846
858
840 *
822
686
2010
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2011
2012
2013
2014T
Q4-14 Guidance:
Sales
$210 to $225
Adjusted EPS $1.02 to $1.12
15