CRANE PAYMENT & MERCHANDISING TECHNOLOGIES KURT GALLO PRESIDENT, CRANE PAYMENT INNOVATIONS

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1 CRANE PAYMENT & MERCHANDISING TECHNOLOGIES KURT GALLO PRESIDENT, CRANE PAYMENT INNOVATIONS

2 Crane Payment & Merchandising Technologies Overview and Results Cash Usage & Innovation Growth Drivers Summary 2

3 Crane Payment & Merchandising Technologies Payment Innovations Merchandising Systems Notes Coins Cold Drink & Snack/Food Hot Coffee Cashless & Software Note & Coin Recycling Cashless, Wireless & Software 3

4 Payment: We Touch Your Life Every Day Payment Kiosks Self-Checkout Parking Vending Machines POS Cashier Systems Fare Collection Gaming Slots Smart Safes Service Kiosks Bank Automation Consumer Convenience Driving the Need for Automation 4

5 Major Customers Are Industry Leaders Payment Kiosks Self-Checkout Parking Vending Machines POS Cashier Systems Fare Collection Gaming Slots Smart Safes Service Kiosks Bank Automation Automation Improves Our Customers Efficiency 5

6 2015 Key Messages Outperforming Expectations Organic growth of 6% Operating margin expanded +240 bps YOY* Strong Growth Payment Innovations delivering growth Merchandising vision has become reality Margin Expansion Successful integration delivering synergies CBS driven productivity * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 6

7 Payment & Merchandising Technologies (in $ Millions) G Sales Operating Profit* Operating Margin* 10.1% 10.7% 13.0% 15.4% 16.6% Crane Merchandising Systems 29% Emerging Markets 15% Japan/ANZ 15% Payment & Merchandising Technologies 26% Crane Payment Innovations 71% Western Europe 23% US / Canada 47% 6% Organic Growth Outperforming Expectations in 2015 * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 7

8 Savings ($ Million) CPI Integration Huge Success! Delivering on Increased $33M Synergy Target $35 Expect: $33 $30 $25 Actual: $24 $20 $15 $10 $5 $0 Actual: $10 Targeted: $7M Targeted: $17M Targeted: $25M G 8

9 CPI Integration Activities Driving Productivity Toronto Assembly 25,000 sq-ft Space Queretaro Facility Existing 80,000 sq-ft space Geneva Assembly 12,000 sq-ft space 27 Kaizen events 38,000 sq-ft freed up 50% increase in Capacity 9

10 Continuously Driving Margin Enhancement in Existing Facilities Freeing Space to Support Revenue Growth 10

11 Crane Payment & Merchandising Technologies Overview and Results Cash Usage & Innovation Growth Drivers Summary 11

12 Cash Remains Dominant Method of Payment India China Russia Italy Brazil 99% 98% 95% 89% 89% Japan Germany 69% 75% UK. USA Canada 47% 45% 53% Source: McKinsey on Payments, March

13 Number of Transactions per Month Cash Dominates Smaller Transactions Consumer Cash Usage in North America (Under $25 Transaction Value) 70% 60% 58% 50% 40% 30% 20% 10% 0% 21% 12% 3% 6% Cash Debit Credit Check Other Source: Evidence from the Diary of Consumer Payments Choice: Shaun O Brien, June

14 All Denominations Continue to Grow 40 Volume of U.S. Currency in Circulation (Billions of Notes) $100 Notes $50 Notes $20 Notes $10 Notes $5 Notes $2 Notes $1 Notes 0 Note: Data as of December 31 of each year. Include Federal Reserve notes, U.S. notes, and currency no longer issued, but excludes denominations larger than the $100 note. Source: Federal Reserve 14

15 Countries Continuously Innovate Currency Advancing Note Design Color Shifting Ink Security Thread Advancing Coin Design and Composition Inner Plastic Ring Polycarbonate Materials Embedded with Taggant Over 1000 Currency Modifications per Year 15

16 Growing Demand for Advanced Technology Note Cashless Coin MAGNETIC MAGNETIC SWIPE PLANAR COILS CAPACITIVE ARRAY NFC MULTI-FREQUENCY ULTRA VIOLET BLUETOOTH HELMHOLTZ INFRA-RED CHIP AND PIN OPTICAL Excellence in Sensors and Algorithms for Superior Protection 16

17 Crane Payment & Merchandising Technologies Overview and Results Cash Usage & Innovation Growth Drivers Summary 17

18 Market Demand for Cash Handling Traditional Approach Accept Dispense Reduced Labor (Increase Productivity) Reduces Float Customer Convenience Recycling Innovation Recycle 18

19 Long-Term Growth in Public Transit China Most Rapidly Growing Transit Network in the World Indian Railways Just Initiating Automation CPI is Share Leader with Complete Solution for Cash Handling 19

20 Long-Term Growth in Public Transit Current State China 1.35B 25,000 TVMs / 25% CAGR India 1.25B 450 TVMs Opportunity CPI Leader in Emerging Markets with Total Cash Handling Solution 20

21 Bank Branch Automation Driving Growth Traditional Branch Branch of the Future Trends Branch Headcount # Express Banking Kiosks Major Banks Embracing Automation to Deliver Consumer Convenience and Profitability Growth 21

22 Vending Industry Demand for Cashless Driving CPI Incremental Machine Content Current Norm is 65% Lost Machine Sales 15% Machine Sales Growth Cash Only Cashless Only Cash + Cashless Crane s Leadership Share, Uniquely Positioned: Capturing Cashless Growth 22

23 While Industry Demand for Cashless is Growing 15% CAGR Over the Next 10 Years (POS in 000 s) Projected Industry Cashless (Wireless) Installed Base Growth Vending Point s of Sale Source: Company estimates. 23

24 Enabling Crane Merchandising s Digitally Connected Vision to Become Reality Integrated Cashless Delivering Higher Sales Shopping Cart Drives +30% Multi-purchase Touch Screen with Nutritional Browsing Intelligent Store Remote Management and Reporting Digital Advertising Drives +20% Lift in Sales Customized Solutions +60% Same Store Increases 24

25 Crane Payment & Merchandising Technologies Overview and Results Cash Usage & Innovation Growth Drivers Summary 25

26 Payment & Merchandising Technologies 1 Leading market share position in attractive and growing end markets 2 Innovative technology and product solutions 3 Delivering productivity and margin expansion Outperforming Expectations 26

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