PAYMENT & MERCHANDISING TECHNOLOGIES

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1 PAYMENT & MERCHANDISING TECHNOLOGIES LOUIS PINKHAM SENIOR VICE PRESIDENT 1

2 Payment and Merchandising Technologies Building the Platform Crane Currency Overview Market Trends Technology Summary 2

3 Experienced Acquirer in the P&MT Space

4 Track Record of Success 21% Adjusted Segment Margin* Improved ~1900 BPS 14% 7% 0% * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 4

5 Payment & Merchandising Technologies ($ Millions) G Sales ,206 Operating Profit* Operating Margin* 13.0% 15.4% 18.2% 20.8% 16.5% Payment & Merchandising Technologies 28% Crane Merchandising Systems 25% Crane Payment Innovations 75% Emerging Markets 16% Developed Asia-Pacific 11% Western Europe 23% U.S./Canada 50% Strong Core Growth and Margin Improvement * Excludes Special Items. Please see non-gaap Financial Measures tables for details. Note: Charts based on 2017 actual results. 5

6 Payment and Merchandising Technologies Building the Platform Crane Currency Overview Market Trends Technology Summary 6

7 P&MT Segment Post-Acquisition Prior to Crane Currency Acquisition (2017 Sales of $777M) After Crane Currency Acquisition (2018G Sales of $1,206M) 75% 34% 18% 25% 48% Crane Currency Becomes 34% of the Overall Segment 7

8 Crane Currency at a Glance Fully Integrated Global Currency Provider Banknote design Substrate manufacturing Banknote printing Security technologies 2017 Sales ~1/3 U.S. vs. ~2/3 International One of Three Global Fully Integrated Providers 8

9 Strong Position in Attractive Market ~$3.3 Billion Served Market Banknote Printing $1.5B $1.0B Currency Security Features $0.8B Currency Substrate 3 rd Largest Player in Served Market 9

10 Pioneer in Micro-Optics Global Industry Leader in Micro-Optic Security Security built into substrate and/or added at print Security features increasingly added to smaller denomination notes Full portfolio of micro-optic solutions with numerous options Never been successfully counterfeited Security Portfolio Provides Path to Growth 10

11 Crane Currency Locations Boston, Massachusetts Corporate Headquarters Nashua, New Hampshire Security Feature and Micro-Optics Production Dalton, Massachusetts US Currency Paper Manufacturing and R&D Tumba, Sweden Paper Manufacturing, Banknote Printing, and Design Services Alpharetta, Georgia Technology Center and Micro-Optics Research Malta 4Q 2018 Customer Experience Center, Banknote Printing, Design Services 11

12 Payment and Merchandising Technologies Building the Platform Crane Currency Overview Market Trends Technology Summary 12

13 Worldwide Demand for Cash Global Notes in Circulation * (in Billions) Euro Coins in Circulation ** (in Millions) CAGR 07-17: 6.8% CAGR 07-17: 5.1% Demand for Cash Continues to Grow Worldwide * Source: Central Bank Websites; Koncept Analytics; Crane Management; Parthenon Analysis ** Source: 13

14 Use of Cash in European Retail Purchase Value % of Transactions Using Cash 0 to % 89.5% 10 to % 75% 20 to % 62% 30 to % 52.5% 40 to % 47% 50 to % 35.5% Cash Continues to Dominate at the Point of Sale Source: 14

15 Security Content Per Note is Growing Growing Demand for Advanced Security Features Across more and more denominations Becoming larger proportion of total banknote spend Illustrative Cost Structure Per Note 35%+ Security Thread 2x Increase Security Thread Printing Ink Shipping Substrate Old Note Printing Ink Shipping Substrate New Note Security Features Expected to Drive Revenue Growth 15

16 Increasing Demand for Efficiency U.S. Unemployment Rate* U.S. Hourly Total Compensation** 12% $37 9.8% $35 $ % $33 6% 3% 4.1% $31 $29 $27 $ % $25 Continued Pressure on Business to Reduce Labor Costs *Source: Bureau of Labor Statistics, seasonally adjusted. **Source: Bureau of Labor Statistics, U.S. Employer Costs per Hours Worked for Employee Compensation 16

17 Payment and Merchandising Technologies Building the Platform Crane Currency Overview Market Trends Technology Summary 17

18 Product and Technology Evolution Coin Dispenser Coin Acceptor Coin Recyclers Pay Station Note Dispenser Note Acceptor Note Recyclers Card Reader Telemeter All in One Components Sub-Systems Systems Products Have Continued to Evolve in Function, Features, and Performance 18

19 Universal Interface and Connectivity OEM System Discrete Interface Programs Universal Interface Program ABC Code XYZ Code Unified Single Code GHJ Code Traditional Approach Our Solution Improving Installation, Integration, and Security 19

20 Fully Connected Vision Integrate sensory hardware into machines and systems Connect hardware to networks to communicate machine data Provide software tools to transform data into actionable intelligence, improving our customers productivity Pay Station Smart Hardware Interoperability Middleware Single API Preventative Maintenance Real-time Alerts WAN & LAN Enterprise Software Remote Diagnostics Route Optimization Over-the-Air Software Updates Deliver Complete Solutions that Transform Traditional Hardware Components Into Intelligent Communication Systems 20

21 CPI Sync Connecting CPI Products to Enhance and Extend Capabilities 21

22 Easitrax Live Reno Illinois Easitrax System Las Vegas Las Vegas Easitrax Live Allows Real-Time View into Distributed Payment Systems 22

23 Note Sensor Technology Advancement Contact Imaging Sensing Serial Number Reading Fitness Checking Dye Stain Detection New Sensing Technology Migrating into CPI Products 23

24 Micro-Optic Technology As the viewer or lens array moves, the magnified image appears to move 37 microns Microscopic printed icons that are magnified by the lens array 24

25 Payment and Merchandising Technologies Building the Platform Crane Currency Overview Market Trends Technology Summary 25

26 A Bright Future 1 Solid performance track record 2 Positive market drivers 3 Technology drives differentiation Fundamentals that Drive Our Future Growth 26

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