Q4 2014 Results and 2015 Outlook Conference Call February 26, 2014 © 2015 Harsco Corporation. All rights reserved. Administrative Items Non-GAAP Measures Conference Call and Access to Information Throughout the Company's call and this presentation, the Company refers to certain non-GAAP measures, including, without limitation, adjusted operating income (loss) from continuing operations, adjusted operating income margin, adjusted diluted earnings per share from continuing operations, return on invested capit ...

Q4 2015 Results & Outlook Conference Call │February 26, 2016 ©2016 Harsco Corporation. All Rights Reserved Administrative Items Conference Call and Access to Information More information on Harsco's quarterly earnings, including the Company's earnings press release issued today and this presentation, is available on the Investor Relations portion of Harsco's website. Company management will discuss the Company's financial performance during a conference call today at 9:00 a.m. (ET). Both the presentation an ...

ITT FY Conference Summary Company Overview - **Company**: ITT - **Industry**: Engineering manufacturing, focusing on components for harsh environments across various sectors including automotive, rail, defense, chemical, mining, oil and gas, and energy transition [4][5] Key Financial Highlights - **Q1 Performance**: Generated over $1 billion in orders, with a strong capital deployment strategy including $100 million in share repurchases during Q1 and $500 million year-to-date [5][6] - **Long-term Targets**: - Organic revenue growth of over 5% through 2030 - Total growth target of 10% - Adjusted operating margin of approximately 23% - EBITDA above 25% - EPS target of $11 (organic) or over $12 (total) [8] Growth Strategy - **Organic Growth**: - Targeting 5-7% in Industrial Process (IP), 2-4% in Motion Technologies (MT), and 7-9% in Connect and Control Technologies (CCT) [9] - Emphasis on higher growth and margin businesses, particularly in flow and connectors [11] - **Market Outperformance**: Historically outperformed market growth by 300-400 basis points through execution and innovation [15] - **Margin Expansion**: Aiming for 500 basis points of margin expansion by 2030 through efficiency improvements, automation, and better supply chain management [16][19] Capital Allocation and M&A Strategy - **M&A Focus**: - Targeting high-growth, high-margin businesses with strong management teams - Recent acquisitions include Habony (LNG hydrogen), MicroMode (RF connectors), and Kisaria (aero and defense) [35][36][38] - **Criteria for M&A**: Must have a leading market position and align with ITT's strategic goals [36][37] Innovation and Product Development - **R&D Investment**: Over 4% of revenue allocated to R&D, focusing on continuous improvement and new product development [34] - **New Product Launch**: Introduction of Vida, an embedded motor drive technology aimed at reducing energy waste in industrial pumps, with a projected addressable market of $6 billion [57][61] Segment Performance Insights - **Motion Technologies**: - Friction OE business expected to achieve 400-500 basis points of outgrowth in 2025, with historical outperformance of 700-800 basis points [45][46] - Continuous improvement in productivity and quality is a key focus [51] - **Connect and Control Technologies**: - Recent acquisition of Kisaria expected to drive high single-digit growth and margin progression through synergies with ITT's existing connector business [64][66] Market Outlook - **Book-to-Bill Ratio**: Strong performance in the marine industry with a book-to-bill ratio of 2.0 in Q1, driven by market demand for cleaner energy solutions [54][55] - **Future Growth**: Confidence in double-digit growth for the Svanoy segment, supported by strong order quality and customer loyalty [55] Additional Considerations - **Working Capital Management**: Significant room for improvement in working capital across segments, particularly in IP and CCT, with a focus on inventory management [42][43] - **Intellectual Property Protection**: Strong emphasis on protecting innovations, particularly in new motor technologies, with a competitive edge expected to last several years [71]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 increased 363% to $4,950,000 compared to $1,070,000 in Q1 2024 [11] - Gross margin for Q1 2025 increased 1288% to $1,310,000 compared to $90,000 for Q1 2024 [13] - Net loss for Q1 2025 totaled $2,080,000 compared to a net loss of $2,750,000 for Q1 2024, representing a 24% decrease in net loss [15] Business Line Data and Key Metrics Changes - The power line of business contracted 570 megawatts with APR Energy's gas turbine fleet, an increase of 180 megawatts since the last report [3] - The edge data center business, DuosEdge AI, has customer commitments for an additional eight edge data centers, expecting to complete installations in the next six months [4][8] - Revenues from the asset management agreement (AMA) with APR Energy are expected to positively impact gross margins [11] Market Data and Key Metrics Changes - Current contracts and backlog represent more than $45,000,000 in revenue, with approximately $17,400,000 projected to be recognized in Q2 2025 [18] - The company expects to enter 2026 with more than $3,000,000 in annual recurring revenue from multi-year contracts [9] Company Strategy and Development Direction - The company is focused on executing its strategy to grow into a larger entity through three distinct divisions: Duos Technologies, DuosEdge AI, and DuosEnergy [6] - The edge AI division is actively marketing remote data centers to serve local communities and businesses, with plans to deploy 15 edge data centers by the end of the year [7][8] - The company is evaluating opportunities to acquire additional assets to grow the overall value of APR Energy [46] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the power business and the edge data center market, noting that both lines of business are currently performing well [34][36] - The company anticipates breakeven or potential profitability in the third and fourth quarters, with a focus on minimizing losses in the first half of the year [19] Other Important Information - The company has improved its balance sheet, with shareholders' equity now over $5,100,000 and cash of $6,480,000 [16] - The company has retired $1,000,000 of debt during the quarter and expects to retire an additional $1,200,000 by year-end [17] Q&A Session Summary Question: What is the expected gross margin for the power business throughout the year? - Management indicated that a gross margin of around 32% is a good range to expect for the year, with opportunities to improve [26][27] Question: Any updates on hyperscaler opportunities in the data center business? - Management confirmed active discussions with three or four hyperscalers interested in utilizing edge data centers and behind-the-meter power solutions [28][29] Question: Has there been any change in the sales cycle due to tariffs? - Management reported no significant impact from tariffs on the power or edge data center businesses, stating that both lines are performing well [33][34] Question: How does the company plan to allocate resources for new projects? - Management noted that they are maintaining a high utilization rate of their assets and are evaluating opportunities for additional acquisitions to support growth [45][46]

Core Insights - SOGECLAIR reported a consolidated turnover of €41.5 million for Q1 2025, reflecting a growth of 6.4% compared to the previous year, and 4.1% at constant exchange rates, marking the 16th consecutive quarter of turnover increase [1][2]. Financial Performance - The turnover growth was driven by various sectors, with the Defense market experiencing significant growth of 72%, while the Commercial Aviation sector stabilized at 1.7% and the Business Aviation sector saw a decline of 4.6% due to political and economic uncertainties in North America [3][4]. - The Rail market grew by 18.5%, and the Automotive sector increased by 6.5%, despite a challenging environment [4]. Geographical Performance - Turnover by geographical area showed France leading with €28.3 million (up 7.4%), followed by Europe (excluding France) with a 32.3% increase, while the Americas experienced a slight decline of 2.9% [6][8]. - Asia-Pacific saw a notable increase of 29.8%, contributing to the overall growth [6][8]. Business Unit Performance - The Engineering Business Unit (BU) reported a turnover increase of 9.9%, driven by diversification into Defense and Space sectors, while the Solutions BU grew by 3.1% [10][11][13]. - Production activities remained stable, with strong growth in the land vehicle sector, particularly in Defense [14]. Market Outlook - Despite geopolitical and economic challenges, SOGECLAIR's turnover growth aligns with expectations, and the company aims to strengthen its market position in Defense and Rail sectors [16][18]. - The North America region's turnover decline was limited, and future impacts on the business aviation market are expected to be less significant [17]. Company Overview - SOGECLAIR specializes in providing innovative, high-value solutions for safer and less-consuming mobility across various sectors, including aeronautics, space, vehicle, rail, and defense [21].

CSX Corporation Developments - CSX Corporation has announced new five-year tentative collective bargaining agreements with the Brotherhood of Railroad Signalmen and the International Brotherhood of Boilermakers, which are subject to ratification by union members [2][3][4] - The agreement with the Brotherhood of Railroad Signalmen covers 1,215 signalmen, while the deal with the International Brotherhood of Boilermakers involves 59 members [2][3] - CSX has ratified agreements with 11 labor unions, covering 14 different work groups, which represent 47% of its unionized workforce [5] Employee Relations and Benefits - The new agreements aim to provide improved wages, health care, and paid time off benefits, reflecting CSX's employee-friendly approach [5] - Joe Hinrichs, CEO of CSX, emphasized the importance of safety, respect, and operational excellence in the agreements, aiming for greater efficiency and service for customers [3][4] Industry Context - Other companies in the rail industry, such as Union Pacific Corporation, Canadian Pacific Railway Limited, and Canadian National Railway Company, have also entered into collective bargaining agreements recently [7] - Union Pacific has reached a tentative agreement with the National Conference of Firemen & Oilers, which includes wage increases and additional vacation time [8] - Canadian Pacific has ratified a new four-year collective agreement with Unifor, covering approximately 1,200 mechanical employees, which includes improved wages and benefits [10] - Canadian National's new four-year agreement with the International Brotherhood of Electric Workers includes annual wage increases of 3% [12]