Payment & Merchandising Technologies. Louis Pinkham, Senior Vice President

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1 Payment & Merchandising Technologies Louis Pinkham, Senior Vice President

2 AGENDA Results and Guidance Organic Growth Initiatives Productivity and Efficiency Market Trends Summary 2

3 PAYMENT & MERCHANDISING TECHNOLOGIES ($ Millions) G Sales ,257 1,159 Operating Profit* Operating Margin* 15.1% 17.9% 20.5% 17.4% 19.0% Developed Asia-Pacific 8% Crane Currency 36% Crane Payment Innovations 48% Emerging Markets 29% U.S./Canada 46% Payment & Merchandising Technologies 38% Crane Merchandising Systems 16% Western Europe 17% *Excludes Special Items. Please see non-gaap Financial Measures tables for details. Note: Charts based on 2018 actual results. STRONG UNDERLYING MARKETS AND MARGIN IMPROVEMENT 3

4 TRACK RECORD OF SUCCESS Adjusted Segment Margin* Improved ~1700 BPS Target margin range of 18 22% MEI Acquisition 18% Currency Acquisition 21% 18% 19% 15% 13% 10% 11% 10% 11% 6% 8% 7% 6% 7% 8% 2% G* *Excludes Special Items. Please see non-gaap Financial Measures tables for details. Years prior to 2019 based on old pension accounting methodology. 4

5 AGENDA Results and Guidance Organic Growth Initiatives Productivity and Efficiency Market Trends Summary 5

6 LEVERAGE CORE BUSINESS TO EXPAND MARKETS Connectivity Solutions Create single connected services platform 15 Million Devices Installed Worldwide Technology-Driven Core Bold Moves Open new markets Packaged Solutions Evolve from components to solutions 6

7 LEADING TECHNOLOGY IN OUR DEVICES Capacitive Array Planar Coils Multi- Frequency 7

8 A SINGLE CONNECTED SERVICES PLATFORM Upgrades Remote Management Data Analytics Route Optimization Price Changes Alerts Custom Reports Dynamic Dashboards Credit Card Cash All Payment Types Recurring Revenue Fraud Detection Mobile Currency Updates Digital Advertising 8

9 EASITRAX LIVE Reno Illinois Easitrax System Las Vegas Las Vegas EASITRAX LIVE ALLOWS REAL-TIME VIEW INTO DISTRIBUTED PAYMENT SYSTEMS 9

10 ALL-IN-ONE SOLUTION All-in-One Cashless Reader/Telemeter 10

11 EXPANDING INTO PACKAGED SOLUTIONS 11

12 BIG BETS JAPAN 12

13 INVESTING FOR GROWTH R&D Spend as a % of Sales 8.5% 8.2% 8.2% 9.0% 8.4% P CRANE PAYMENT INNOVATIONS RE-INVESTS 8% 9% ANNUALLY IN R&D 13

14 DESIGN AND TECHNOLOGY A DIFFERENTIATOR LIFESPAN OF A BANKNOTE SERIES IS TYPICALLY YEARS 14

15 EXPANDING ADDRESSABLE MARKET SURFACE patch & stripes RAPID durable security for heavy circulation MOTION pioneering micro-optics STEADY LAUNCH CADENCE HAS TRIPLED ADDRESSABLE MARKET 15

16 MARKET TRENDING TO MORE OVERT SECURITY Illustrative Cost Per Note 35%+ Security Thread 2x Increase Security Thread Printing Printing Ink Shipping Substrate Old Note Ink Shipping Substrate New Note INCREASED SECURITY CONTENT IN NEW BANKNOTES 16

17 EXPANDING FURTHER INTO PRODUCT AUTHENTICATION CUSTOMIZED HIGHLY VISIBLE PRODUCT SECURITY SOLUTIONS 17

18 CRANE CURRENCY S HISTORY OF STRONG GROWTH $ Millions ~12% Sales CAGR $ * U.S. Revenue International Revenue *Micro Optics Launched 18

19 AGENDA Results and Guidance Organic Growth Initiatives Productivity and Efficiency Market Trends Summary 19

20 MALTA REPOSITIONING Print Conversion Cost 40% 2017 Cost Base 2020P Cost Base PROGRAM ON-TRACK 20

21 EUROPEAN MANUFACTURING FOOTPRINT Space for Growth Manchester, UK Manufacturing and Engineering Center of Excellence CONSOLIDATED TWO ADDITIONAL SITES INTO MANCHESTER, UK, IN 15 MONTHS 21

22 CAPACITY IMPROVEMENTS ENABLE GROWTH Security Technology Paper Mold Cover INCREASED CAPACITY WITHOUT INVESTMENT 22

23 MANUFACTURING INNOVATION 23

24 VALUE ANALYSIS & VALUE ENGINEERING 5% cumulative cost out annually over past 5 years IT IS ALL ABOUT THE DETAILS 24

25 SUPPLY CHAIN EXCELLENCE Key Product Lines 4.9% Year-on-Year Cost Reduction CAGR

26 AGENDA Results and Guidance Organic Growth Initiatives Productivity and Efficiency Market Trends Summary 26

27 CONTINUED PRESSURE TO REDUCE LABOR COSTS 10% 9% 8% Increases in Britain s minimum wage are putting a growing number of workers at risk of being replaced by machines 7% Retailers eye efficiency gains to offset higher wages 6% 5% Japan firms near crisis as labor shortage deepens 4% 3% 2% As mandated minimum wages continue to rise, retailers are forced to pursue automated alternatives. 1% 0% U.S. Unemployment Rate (Source: Bureau of Labor Statistics) 27

28 Annual Global Banknote Issuance BANKNOTE ISSUANCE CONTINUES TO GROW Billions Global Banknote Issuance Is a Steady Growth Market % CAGR EXPECT MARKET TRENDS TO REMAIN FAVORABLE Source: Company and industry research 28

29 AGENDA Results and Guidance Organic Growth Initiatives Productivity and Efficiency Market Trends Summary 29

30 SUMMARY 1 Continued solid performance track record 2 Positive long-term market drivers 3 Technology leadership 4 Scale is a differentiator A BRIGHT FUTURE... 30

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