CRANE PAYMENT INNOVATIONS KURT GALLO PRESIDENT

Transcription

1 CRANE PAYMENT INNOVATIONS KURT GALLO PRESIDENT

2 Crane Payment Innovations (CPI) Crane Payment Innovations Overview and Results Product and Market Overview Growth and Value Proposition Summary 2

3 Payment & Merchandising Technologies (in $ Millions) G Sales Operating Profit* Operating Margin* 8.1% 10.1% 10.7% 13.0% 14.7% Crane Merchandising Systems 28% Emerging Markets 18% Japan/ANZ 16% Payment & Merchandising Technologies 24% Crane Payment Innovations 72% Western Europe 23% US / Canada 43% Global Provider of Payment Solutions and Vending Equipment * Excludes Special Items. Please see non-gaap Financial Measures tables for details. 3

4 2014 Key Messages OP Margin 13.0% Operating margin expanded +230 bps YOY Integration activities driving margin growth Product Innovation Technology innovation drives growth 8 new CPI products launching in 24 months Emerging Markets 18% of Sales Cash usage very high Strong long-term growth prospects 4

5 Savings ($ Million) Integration Activities Driving Productivity Updated Synergy Targets (January 2015) $35 Expect: $33 $30 $25 $20 $15 $10 $5 $0 Expect: $19 Actual: $10 $25 $17 Targeted $ G 2016G Synergy Targets Increased 5

6 Product Line Rationalization Dual offering in North America Target like customers High complexity and cost Single product offering No revenue loss Reduced R&D, support and infrastructure costs Delivers Productivity Gains Across the Business 6

7 Facility Rationalization Reduced Overhead, Better Coordination, New Centers for Excellence Toronto Assembly 25,000 sq-ft space Queretaro Facility Existing 80,000 sq-ft space Geneva Assembly 12,000 sq-ft space Business Simplification and Improved Flexibility 7

8 Crane Payment Innovations (CPI) Crane Payment Innovations Overview and Results Product and Market Overview Growth and Value Proposition Summary 8

9 We Touch Your Life Every Day Payment Kiosks Self-Checkout Parking Vending Machines Fare Collection Gaming Slots Smart Safes 9

10 Broad Product Portfolio Validation and Dispensing Solutions Note Solutions Cashless Solutions Cash Management Coin Solutions Recycling Solutions 10

11 Customers Payment Kiosks Self-Checkout Parking Vending Machines Fare Collection Gaming Slots Smart Safes Major Customers Are Industry Leaders 11

12 Evolution of CPI Over Time CashCode Bill Validation & Recycling Money Controls Bill and Coin Products Coin Dispensing Expertise NRI Coin Acceptance Telequip Coin Dispensing MEI / Conlux Bill Validation & Recycling Global Applications 12

13 Global Leadership To be the global leader in currency validation and cash management systems, delivering innovative solutions that enhance our customers profitability Quality, Reliability, Technological Innovation, and Security 13

14 Cash Usage by Country 99% 98% 95% 89% 89% 75% 69% 53% 47% 45% India China Russia Brazil Italy Japan Germany United Kingdom United States Canada Source: McKinsey on Payments, March 2013 Cash Remains the Dominant Method of Payment 14

15 ($ billion) (EUR billion) Cash in Circulation Continues to Growth US Currency in Circulation Euro Currency in Circulation $1,400 1,200 $1,200 1,000 $1,000 6% CAGR 800 9% CAGR $ $600 $ $ $ Sources: Federal Reserve, ECB 15

16 Cashless Cannibalizes Cashless Non-Cash Payment Transactions by Type (U.S.) 100% 90% 80% 70% 60% 50% 40% 30% 20% Checks ACH Credit Card Debit Card Prepaid Card 10% 0% Checks Decline as Consumers Shift to Prepaid, Debit, and ACH Source: Federal Reserve, December 19,

17 Cash Dominant for Smaller Transactions Share of US Transactions by Instrument Volume of Transactions 40% 7% 17% 25% 7% 4% Value of Transactions 14% 19% 16% 18% 27% 5% 0% 20% 40% 60% 80% 100% Cash Check Credit Card Debit Card Electronic Other Cash Accounts for 61% of All Transactions Under $25 Source: Federal Reserve, Cash Product Office, April

18 Crane Payment Innovations (CPI) Crane Payment Innovations Overview and Results Product and Market Overview Growth and Value Proposition Summary 18

19 Productivity Value Proposition Automated payment systems and self checkout solutions reduce labor up to 75% Note recyclers can reduce cash management costs by 90% Recycling technology reduces cash float by 70% Automated Payment Solutions Deliver Labor Productivity 19

20 Cash Recycling Innovation Accept Dispense Traditional Approach Recycling Innovation Reduced Labor (Increase Productivity) Reduces Float Customer Convenience Recycling Combines Currency Acceptance and Dispensing Technology 20

21 Accelerating Innovation: Recycling Solutions 2 Denomination Recycler Launching 2015 High Speed Coin Recycler Launching 2015 Coin Recycler(s) Launching 2016 Applications Gaming Financial Services Transportation Retail Applications Transportation Retail Applications Recycling Products Deliver 2x to 5x the Sales per Application 21

22 Enabling Payment Transactions Bill Validator Bill Recycler Coin Acceptor Cashless Bezel 22

23 Consumers in China Pay with Cash Cash is used in 98% of all transactions 1.3 billion cells phones in China today ~500 million consumers are unbanked Mobile Phone Service Providers Driving Incremental Revenue Through Cash Based Payment Kiosks Sources: World Bank, Statista 23

24 Financial Inclusion Driving Investment 65% of India s population is unbanked Cash is used in 99% of all transactions India s Stated Goal All citizens with bank accounts by 2016 Cash Deposit Kiosk Placements Driven by Financial Inclusion Initiative Sources: McKinsey on Payment, released March 2013; World Bank; Reserve Bank of India 24

25 Advanced Technology Ensures Maximum Security Value Proposition Authenticates currency payments Reduces counterfeit risk Eliminates the human element Delivers reliable currency management Counterfeit Protection and Physical Security Ensured 25

26 Excellence in Sensors and Algorithms Note Cashless Coin MAGNETIC MAGNETIC SWIPE PLANAR COILS CAPACITIVE ARRAY NFC MULTI-FREQUENCY + ULTRA VIOLET BLUETOOTH HELMHOLTZ INFRA-RED CHIP AND PIN Multiple sensors and sophisticated algorithms allow for highest levels of security OPTICAL Combining Advanced Technology to Offer Superior Protection 26

27 Crane Payment Innovations (CPI) Crane Payment Innovations Overview and Results Product and Market Overview Growth and Value Proposition Summary 27

28 Crane Payment Innovations Global cash usage growing with emerging markets leading demand Leading market share position in attractive end markets Innovative technology and products drive growth 4 Synergies drive margin expansion Strong Foundation for Long-Term Profitable Growth 28

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