alex alcala, senior vice president · 2021. 2. 24. · alex alcala, senior vice president. fluid...
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Fluid Handling
Alex Alcala, Senior Vice President
FLUID HANDLING
Results & Guidance
Delivering Share Gain
Expanding Margins
Summary
2
»
FLUID HANDLING
3
United States34%
Western Europe
25%
Canada20%
Emerging Markets
17%
Developed Asia-Pacific
4%Chemical
23%
Power9%
Oil & Gas12%
General Industrial
26%
Municipal9%
Non-Residential
Construction22%
FluidHandling
34%
• EXPECT 100 BASIS POINTS OF MARGIN EXPANSION PER YEAR
($ Millions) 2017 2018 2019 2020 2021G**
Sales 1,043 1,102 1,117 1,006 1,035
Operating Profit* 115 129 152 115 130
Operating Margin* 11.1% 11.7% 13.6% 11.4% 12.5%
»* Excludes Special Items. Please see non-GAAP Financial Measures tables for details.
** Reflects midpoint of guidance range. Segment level guidance unchanged compared to original guidance provided concurrent with Q4 2020 earnings release on January 25, 2021.Note: Charts based on 2020 actual results. Totals may not sum due to rounding.
FLUID HANDLING
Results & Guidance
Delivering Share Gain
Expanding Margins
Summary
4
MOMENTUM DRIVING SHARE GAIN
5
Accelerating Product
Innovation
CommercialExcellence
Localization
2XOUTPERFORM
THE MARKET GROWTH
»
New Product Sales – Vitality*
• MOMENTUM WITH PRODUCT INNOVATION IMPACTING BUSINESS PERFORMANCE
PRODUCT INNOVATION IS ACCELERATING
Singular Focus – Solving our Customer’s Toughest Problems
The Right Culture – Big Bold Fast
Speed – From Concept → Commercialization
4%
10%
15%
20%
0%
5%
10%
15%
20%
25%
2018 2019 2020 2021E 2022E 2023E 2024E 2025E
*Process Solutions
»6
BREAKTHROUGH PRODUCT INNOVATION IMPROVEMENTS IN CORROSIVE, TOXIC, ABRASIVE & HIGH PURITY APPLICATIONS
7
Better Flow
4-6X $50M
By 2025Lower Total Cost
2X
• AN INNOVATIVE SOLUTION GROWING DOUBLE DIGITS EVEN DURING THE MARKET DOWNTURN»
Breakthrough Addition to Triple Offset Valve Line
PRODUCT INNOVATION DRIVING STRONG SHARE GAINS IN CORROSIVE, TOXIC, ABRASIVE & HIGH PURITY APPLICATIONS
8
• PRODUCT INNOVATIONS FOR CRITICAL PROCESS APPLICATIONS WILL DELIVER COMBINED $150M BY 2025»
Next GenerationSleeved Plug Valve
Severe Service Metal Seated Ball Valve
Expanded Aseptic/Pharma Portfolio
Longer Life
50% Lower Torque
50% Maintenance & Installation Costs
50%
SOLVING TOUGH WASTEWATER PROCESSING PROBLEMS: HIGH SOLIDS CONTENT APPLICATIONS
9
• LEADING HIGH SOLID PUMPING SOLUTIONS WILL DELIVER $30M BY 2025»
Wastewater
Chopper Pump
Maintenance Cost Reduction
75%
High Efficiency Non-Clog Pump
More Efficient
15%
MOVING TO HIGHER GROWTH DIGITAL PRESSURE INSTRUMENTATION SOLUTIONS
10
• EXPANDS SERVED MARKET BY $480M – EXPECTING $10M GROWTH BY 2025 »
Designed for Ease of Customization
80% Reduction in Components
Customization drives Performance and Reliability in Difficult Applications➔
Mobile Hydraulics
Factory Automation
TransportationAgricultural Equipment
»
DRIVING GROWTH THROUGH COMMERCIAL EXCELLENCE
• TRENDING TOWARDS 40% IMPROVED SALES PRODUCTIVITY BY 2024
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»
Next Generation Sales ToolsFront End AutomationSales Call Activity
Optimization
Incoming
Customer POs
Sales Order Created
in the ERP System
LOCALIZATION – GROWTH THROUGH SPEED ANDCUSTOMER INTIMACY
12
China
»
Middle East
• GROWTH MARKETS & SHARE GAIN THROUGH LOCALIZATION WILL DELIVER $20M BY 2025»
»
STRONG FOCUS ON INORGANIC GROWTH OPPORTUNITIES
• PROVEN TRACK RECORD AND FOCUS ON EXPANDING TARGET OPPORTUNITIES
13
»
Prioritization
• Positive Market Segment Growth Drivers
• Ability to Technically Differentiate
• Strategic Alignment
• Extendibility
Fluid
Handling
Focus
• Process Valves
• Instrumentation & Sampling
• WastewaterPumps
• Wastewater Treatment
• ProcessSensing
• ProcessPumps
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FLUID HANDLING
Results & Guidance
Delivering Share Gain
Expanding Margins
Summary
14
»
CONFIDENCE IN PATH TO MID-TEEN MARGINS
• FOCUSED ON 100 BPS AVERAGE MARGIN IMPROVEMENT PER YEAR
15
6%
8%
12% 12%13%
15%
12%11%
12%
14%
11%13%
600
700
800
900
1,000
1,100
1,200
1,300
1,400
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021G
Sales Margins
Global Recession Oil Price
Weakens
Fluid Handling Sales ($ Millions) and Margin %*
»5.9% 6.3% 8.1% 10.7% 12.1% 13.9% 11.8% 11.9% 12.7% 13.4% 15.0% 14.8% 11.6% 10.9% 11.1% 11.7% 13.6% 11.4% 12.5%
*Excludes Special Items. Please see non-GAAP Financial Measures tables for details.
»
EXPANDING MARGINS THROUGH REPOSITIONING
• AMERICAS REPOSITIONING COMPLETE, EUROPE ON TRACK – DELIVER $25M COST SAVINGS BY 2022
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»
Breakthrough consolidation opportunities; space createdthrough ongoing CBS execution
1
Leveraging current India manufacturing center of excellence – site expansion & consolidation
2
FLUID HANDLING
Results & Guidance
Delivering Share Gain
Expanding Margins
Summary
17
»
SUMMARY
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STRONG MOMENTUM with Share Gains 1
Attractive Business Platform for INORGANIC GROWTH2
FOCUSED on 100 BPS Average Margin Improvement per Year3
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