Crane NXT (CXT) Oppenheimer 29th Annual Technology, Internet & Communications Conference summary

Financial Performance and Outlook

• Projected 2023 revenue near $1.9 billion, with 24% EBITDA margins and 100% free cash flow conversion.

• Targeting $2.5 billion in revenue by 2028, maintaining mid-20% EBITDA margins despite acquisitions.

• Net leverage reduced to 2.7x, aiming for low 2s by end of 2026, with strong free cash flow supporting further deleveraging.

• Acquisitions expected to be dilutive to margin in the first year but included in long-term targets.

• Dividend increases are modest; future capital allocation may include share buybacks if equity remains undervalued.

Business Segments, Growth Drivers, and Market Position

• Two main segments: Security & Authentication Technologies (SAT) and Detection & Traceability Technologies (DTT).

• SAT segment led by Crane Currency and Crane Authentication, focusing on anti-counterfeiting and secure identities.

• DTT segment includes Antares Vision (pharma, food & beverage traceability) and CPI (currency/payment detection equipment).

• Operates as a global technology leader in detection, authentication, and traceability systems, serving ~16,000 customers in ~20 countries.

• Holds ~1,500 patents and employs ~6,000 people across ~30 R&D and manufacturing sites.

Currency and Authentication Business Updates

• Currency business has record backlog, with orders booked into 2028 and investments in new production lines.

• U.S. $10 bill launch expected in 2027, followed by $50, $20, and $100 bills, providing multi-year tailwinds.

• International currency demand strong, with $100 million incremental growth expected between 2026-2030.

• Authentication business growing mid-single digits, with margin improvements from operational synergies and cross-selling.

• Multi-year agreements signed with major sports leagues and electronics retailers for advanced authentication solutions.