BS_U 2015 Strat Plan 07.07.2015 MJ1.pptx

Building Services and Utilities
Strategic Plan 2016 – 2018
August 25th, 2015

2
How will we win?
What are our sources of competitive advantage?
BU’s position (vs. alternative)
Application Know How We don’t get visibility to end use
applications through the channel
Distribution Network
Lead times
Cost
Technology leadership
First to market on corrosion
resistant metal seated valve
products
Next nearest competitor
Crane
significantly
above
market
average
significantly
below
Rationale
1
2
3
4
5
Our lead times (6-8 wks)
beats competition by 2x
Customers love us for our cost
engineering capabilities
We have reach and access to
service highly fragmented
markets, globally
• Limit focus to high value technologies
• Serve a larger portion of the market by leveraging distribution in XXX and YYY
• Gain lead time advantage (X to Y days) by leveraging configurator and ….
How we will win in the market
Competencies
Please help us understand the basis for winning clearly. You may
chose this view or other views based on what works best (esp. if
you have facts that depict relative position vs. having to make a
judgement as depicted here). The point of this page is to
communicate clearly the basis for “How we win”
MH and PR – strategic markets only

3
How will we win?
Lead times
Cost
products
Crane
significantly
above
market
average
significantly
below
Rationale
1
2
3
4
5
markets, globally
Competencies

4
How will we win?
Lead times
Cost
products
Crane
significantly
above
market
average
significantly
below
Rationale
1
2
3
4
5
markets, globally
Competencies

5
How will we win?
Lead times
Cost
products
Crane
significantly
above
market
average
significantly
below
Rationale
1
2
3
4
5
markets, globally
Competencies

6
Agenda
 Business overview
 Recap from last year
 Market overview
 BU strategy
 Vertical/solution set strategy
 Enabling initiatives
 Summary

7
2015 Strategy Deployment Matrix
Building Services & Utilities
Top Level "X" Matrix - Strategy Deployment
l
Develop and implement productivity plans to exceed
commitments for material, labour savings and
successfully conclude the exit of St Helens.(Project
Everest)
l l C m m m l m m m
l
Implement and Execute the Channel Management
Process/Tools for the Building Services business in
the MENA region.
l AP m l m m
l
Implement and Execute the Channel Management
Process/Tools for the Water Utilities business in the
MENA region.
l AP m l m
Achieve
1%
improvement
OP%
to
Revenue
vs
Plan
Achieve
revenue
of
£114m
(£1.5m
above
plan)
Generate
cummulative
incremental
Water
Utilities
revenue
in
MENA
of
£600k
(Plan
=
£5.6m)
Generate
cummulative
incremental
Building
Services
revenue
in
MENA
£700k
(Plan
=
£18.8m)
Final
exit
and
closure
of
site
by
end
March
2015
Deliver
£1m
of
additional
savings
over
and
above
plan
as
per
Everest
CER
for
2016
President
(Judy
Lumsden)
VP/GM
Utilities
(Mark
Hopes)
VP/GM
Building
Services
(Paul
Richardson)
VP
Operations
&
SC
(Terry
Feeney)
VP
Sales
UK
/
Europe
and
ROW
(David
Pye)
VP
HR
(Helen
Molloy)
VP
Finance
&
IT
(Paul
Cansdale)
VP
Sales
Emerging
Markets
(J
Eastwood)
Site
Leader
Hitchin
(Vacant)
l Achieve revenue of £137m in 2017
l Achieve OP% to revenue of 21.5%
Resource Deployment
2017
Breakthrough Objectives
Top Level
Strategic Processes
2015
Annual
Objectives
Targets to
Improve
l Primary Responsibility or Link (type "l")
m Secondary Responsibility or Link (type "m")

8
Agenda
 Market overview
 BU strategy
 Building Services
– Overview and market drivers
– Vertical strategy and initiatives
 Summary

9
44.1
93.0
633.0
48.9
538.0
UK market and size
Products/
technologies
not offered
Current window
to market
Total available
market
Served
market (SAM)
Inaccessible
market
Market size summary 2015 (£Million)
9.6% 2%
Market CAGR
(15-18)
Crane CAGR
(15-18)
3%
Market Share
26%
What are they?
Industrial
Transportation
Residential
Please frame up the TAM, SAM and current window using a simple graphic such as this one. It is perfectly okay to use
ranges if you don’t have an estimate of the TAM (and if requires unreasonable effort).
Data source: EIF

10
104
168.0
3612.8
64.0
3,444.8
MENA market and size
Products/
technologies
not offered
Current window
to market
Total available
market
Served
market (SAM)
Inaccessible
market
6.7% 2.1%
Market CAGR
(15-18)
Crane CAGR
(15-18)
5%
Market Share
10%
What are they?
Industrial
Transportation
Residential
Data source: EIF
BS Market Data Slides

11
7.43
99.8
2,182
92.4
2,082.2
ASIA market and size
Products/
technologies
not offered
Current window
to market
Total available
market
Served
market (SAM)
Inaccessible
market
7.2% 4.8%
Market CAGR
(15-18)
Crane CAGR
(15-18)
16%
Market Share
2.7%
What are they?
Industrial
Transportation
Residential
Data source: EIF

12
Crane Strategic Planning Process
Source: EIF, Plimsoll, Ventures
2015F 2017
Building Services served market CAGR to 2017 is
forecast at 2.3%, Crane will outperform the market with
CAGR of 7%
0
20
40
60
80
100%
UK
Oventrop
Pegler Yorkshire
JET
Crane
BOSS
TA Hydronics
Safety Valve
Competitors
Others
Frese
95
MENA
Nibco
Tecofi
Tozen
Crane
Danfoss
Econosto
Frese
Others
Oventrop
TA Hydronics
Flowcon
168
ROW
Others
223
ASIA
Oventrop
Tozen
Crane
Others
Mueller
KITZ/ TOYO
100
Flowcon
Crane
TA Hydronics
Total = £586m
0
20
40
60
80
100%
UK
Others
Safety Valve
Competitors
Frese
TA Hydronics
Pegler Yorkshire
Oventrop
JET
BOSS
Crane
108
MENA
Others
Frese
Flowcon
TA Hydronics
Oventrop
Tozen
Tecofi
Nibco
Econosto
Danfoss
Crane
194
ROW
Others
224
ASIA
Others
Mueller
KITZ/ TOYO
TA Hydronics
Oventrop
Tozen
Crane
118
Flowcon
Crane
Total = £643m
• In the UK, we will outperform the market with a combination of NPD, ‘Pricing to Win’ and our training and advisory
strategy
• In MENA, we will build on the traction we have seen in 2014 order intake through a disciplined execution of our
Channel Management programme, supported by the training and advisory strategy
• In Asia, we will implement our ‘deep-dive’ strategy to grow sales from £2.7m to £3.6m

0
20
40
60
80
100%
U
K
Pegler
£6M
Danfoss £5M
Oventrop
£8M
Crane
£28M
TA
£10M
Hertz £3M
Other
£22M
Frese £3M
£
8
6
M
E
U
Nibco £16M
Pegler £25M
Danfoss £13M
Oventrop £22M
Econosto £40M
TA £41M
Other £156M
Comap £15M
Tecofi £10M
VIR £30M
£
3
8
7
M
M
E
N
A
Pegler £6M
Nibco
£10M
Econosto
£20M
Crane
£17M
Oventrop £4M
TA £8M
Tecofi £4M
Flowcon International£4M
Flowcon ME £5M
Other
£20M
Kitz £6M
£
1
1
8
M
R
O
W
Pegler£13M
Econosto £8M
TA £69M
Nibco £31M
Oventrop £31M
Other £315M
Velan £9M
£
5
4
6
M
F
a
r
E
a
s
t
£
3
2
M
Total = £1,169M
Crane £1M
Tozen £2M
Crane £2M
TA £2M
Oventrop £3M
Showa £4M
Glenn £1M
Other £6M
Kitz £6M
Toyo £4M
2011-Building Services Market (Valves Only)
Geographical Split
13
 Key markets and sales focus for both the CFS and HNH valve brands are the UK and MENA regions
 Sales into Asia are now beginning to gain traction with the recent appointment of a locally based RSM in Hong Kong
 We currently have minimal sales in Europe and the ROW

14
0
20
40
60
80
100%
UK
633
MENA
Basic
Chemicals
Other
chemicals
and industry
3,613
ASIA
2,182
ROW
Power Generation
Food and drink
Building Services
Basic Chemicals
Other chemicals and industry
Municipal sewage and water
Oil & Gas Offshore/onshore & refining
Mining and metal manufacture
34,610
Total available market – 2015: £41b
9.6% 7.3%
CAGR (15-18)
6.7% 7.2%
Please show the TAM for the current year and expected CAGR for the planning period years. Served market should be shown
separately. You may either choose to depict competitors in the Y axis or solutions/ products in the Y axis. Define the segments
based on how you run your business (end market, geography, technology, etc…..). It should also be clear from this view where
we play and where we do not play (i.e. adjacencies)
7.3%
£41b
4%
2% 4%
Historical
CAGR (12-15) 6% 5%
UK MENA ASIA ROW

15
Trends in growth drivers
1. Variable Flow : BISRIA Guidelines now implemented on variable flow. Continued trend for BMS
contractors to buy the stand alone PICV’s rather than the M&E contractors.
2. Alternative pipework connections : Victaulic have had limited success in penetrating the plant room
market with contractors. Headwind for the grooved manufactures is the preference for contractors
to use packaged plant room fabricators to manufacture the plant room off site. Viega looking to
penetrate the press market via Plumb base Industrial.
3. BIM : Skanska looking to deliver the majority of projects in BIM. Operatives on site to have tablet
devices with the full design on the tablet “real time” rather than paper drawings. The larger
contractors seem to be embracing BIM. The next level down of regional contractors will be more
driven by the government requirements than driving internally.
4. Growth in high end residential projects in our main UK market, London and the South East. Driving
growth in new products such as Heat Interface units. Competition in the HIU market is very price
sensitive with a number of competitors fighting for share. Danfoss, Oventrop etc

16
1. Increase in major projects being subcontracted by national M&E contractors to reduce risk. Smaller
M&E sun contractors then push for the same terms as the national contractor whose project they
are delivering.
2. Growth in main builders, looking to deliver M&E Services in house, Waites, Laing O’Rourke, Balfour
Beatty, Skanska all have in house M&E contractors who complete the majority of their work.
Skanska Engineering currently completed 75% of all Skanska main contractors projects. Waites has
recently purchased SES who ae one of our largest contractor partners.
3. Triple duty suction valves for plant rooms. Pump manufactures such as Armstrong offering these
valves as part of skid unit packages which takes away valves from our proposal /offering.

17
PICV/DPCV
• Danfoss/TA/Flowcon & Frese – Better Knowledge that us, demonstration & training schools with live demo rigs, smart apps and sizing, sample cases,
sell direct, Domain experts in the region, full range and added features and benefits – long term experience, lots of reference projects, better
technology and ranges – No loyalty due to price war which danfoss or flowcon
General Valves
• Econosto - Full range, sell direct, 3 warehouses with 4-6 weeks lead time, separate Middle East dedicated office, bigger range that includes fire
fighting as well as general valves and picv – Fully staffed functional local office with P&L her, supply chain, logistics, claim CoO EU
How we win - some of the examples above
• Full ranges, brand strength, UK heritage and longevity in the region and partnerships for many years, trusted – history, well financed and professional,
seen as industry experts in General valves – Quality engineering manufacturer of valves
• International approvals and product acceptance over many years, perceived as high quality
• Existing consultant approvals in 85% of projects regionally
• Channel Partners well known, decent stocks (not great) but some strong relationships with key players
• Partners provide flexible credit facilities
• Our own team in the countries that sell professionally and are ethical and honest
• We engage with consultants and MEP Contractors and don’t rely on channel partners only – again we differentiate with our people
• MENA DC service
• Engineering and product issues back up, we are trusted not to walk away and leave customers with problems
• Ease of business for some contractors who want a quick approval rather than delay submitting others and ending up behind the project schedule
causing delay and penalties.
• Targeting the right projects and contractors who value all the things above
• MEP Not so trust worthy on newer products and the risks of failures or non supply helps to put doubt in their minds but this wont last forever
Issues
• Perceived as most expensive - good for us and we want to be this but this also makes MEP look to swap us out, devalue our product and propose
more cost competitive alternatives
• Lack of sales tools/training facilities/investment in marketing/exhibitions etc/ apps/ difficult documentation
• CoO China v EU products
• Poor channel partner service in some geographies
• Perceptions of decreasing product quality and support material
• Lack of newer product ranges and we are losing pace on packages i.e. no UL/FM valves, actuation, no competitive PRV
• Ranges and products of people like Herz are dangerously taking share on price on the range and claiming EU CoO. Offering extensive extended
warranties and long payment terms for med/larg projects of over 120 days.
• More competition giving greater choice with copies of our valves in the market at 50% less dealing direct i.e Flowcon/Al Amana
• Lack of coverage and old fashioned practices by some of our older channel partners, newer more dynamic partners a re catching them up. More
motivated and energetic to win – pay better for better more educated and able sales and internal key people
Mena feedback

18
Building Services overview
 Please use 2-3 pages to introduce the vertical and the market segment that the vertical
addresses.
 You may use Pg 9/10, 11, 12,13 as references to think about this overview

19
Building Services market sizing
 Mekko of the market segment addressed by the vertical or solution set
 Pg 22, 24, 26 as references

20
Building Services Growth drivers –
XXX market
Served
market
segment 1
($XXBn)
Sub segment 1
55% sales
Sub segment 2
<10% sales
(In mid term)
(In near term)
 Please pick the key drivers (not all drivers) that impact
market size and are relevant to Crane’s business
 Provide a high level indication of trend using the arrow
 In the next page you will select the metrics that represent
these drivers and articulate trends
Sub segment 2
20% sales
May be segments,
geography clusters, plant
vs MRO or any cut that
makes sense
Drivers
• Power plant upgrades
• New plant construction
• Diary intake
• Processed food consumption
• Regulation
• O&G upstream equipment spend
• Install base
Overall trend
Sub segment 3
10% sales
(In long term)
• Ethylene cracker projects
• Chlor-alkali projects

21
Trend #1: Robust XXX growth driving the
need for YYY
…But US is growing slower…
(US$ Million)
Global equipment spend is growing at
X%...
($ Millions)
… While China is accelerating
($ Millions)
4,540
3,155
2,205
1,590
6.8%
7.6%
7.4%
2021
2016
2011
2006
395
315
250
200
4.6%
4.6%
4.7%
2021
2016
2011
2006
1,110
640
360
160
2006
11.6%
17.6%
12.2%
2021
2016
2011
 For each trend, build a crisp DATA DRIVEN support pages that best depicts
the trend.
 In some cases the metric used will be the driver itself (e.g., power plant
capex) , but in some cases the metric will be indicative of the driver (e.g., rig
count is indicative of drilling capex
1

23
Agenda
 Market overview
 BU strategy
 Building Services
 Summary

24
BS&U / Building Services Strategy
Strengthen our global market position by adding XXX product portfolio, imporving performance and
reducing lead times to achieve $XXM growth in sales and YY% OP improvement by 2018
Strategic objective Rev : XXM 2018 OP: XXM 2018
List top strategic initiatives across
- Customers
- Products/NPD
- Innovation
- New markets
- Channel
- Process
- Cost/profitability
- Other categories…
…
Strategic thrusts/ initiatives
• Add enablers – example: Refocus resources from O&G to general industrials
• Add enablers – example: Implement ERP/SAP to support operational initiative x and footprint initiative Y
• Add enablers – example: Implement XXX program to improve hiring, training and deployment of technicians
Enablers
 Critical page that synthesizes the
strategy. We will need this at overall
business level and for each
vertical/solution set level. We expect
a rich discussion using this page as
foundation

25
Building Services list of strategic initiatives
# Initiative Description Initiative
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
Enlist X new distributors in
SW region to address
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
 This is required in each vertical section
 Arrange from highest impact to lowest impact (this is the order
in which we will review growth initiatives)
 Please follow waterfall page in section “Summary” to
accurately classify initiative type
 Please also submit this for the whole business in excel format
 Top initiatives from here become candidates for SD

26
Strategic initiative #1:
The need
 One by one, for each strategic thrust, please show the key set
of facts for what drives the need for this initiative
 If the need is already established in the “drivers and
trends” section, no need to repeat it here. Just go to the
initiative description in the next page

27
Initiative description
 Description and oppty size
 How will we win/ value prop vs competition
 Key actions/milestones
 Sales ramp up
 Investments required
 Resourcing plan
 Risks
 Assumptions
 Scenarios (if it involves significant external uncertainty)

28
Trends in growth drivers – Variable Flow
Our selected Middle East and North African (MENA) markets have some of the
strongest infrastructure project pipelines globally on a per capita basis, and we
expect average annual growth in the grouping over the next 5 years to stand
at xx% (pull from growth Meko)
Over the long-term, we expect to see sustained levels of investment in
residential and non-residential construction projects - particularly in real estate,
tourism, industrial and manufacturing sectors. This will support a strategic
reduction in oil dependency within the region, through diversification.
We have also seen affordable housing and social infrastructure as a key target
for government spending in the wake of the Arab spring. The fast-growing Gulf
population has meant that the public sector is struggling to deliver. The private
sector is expected to play a major role in tackling the housing shortage, as well
as providing improved healthcare services.
Legislation and a better understanding of the whole life costs of
building are driving the need for more efficient systems (PICV).
1
2
3
4
5
Variable Flow

29
Growth drivers – UK/MENA/Asia market
Served
market
segment 1
($XXBn)
Tourism
55% sales
Industrial
<10% sales
(In mid term)
(In near term)
Social
20% sales
Drivers
• Diary intake
• Regulation
• Install base
Overall trend
Real Estate
10% sales
(In long term)
Variable Flow
Balancing valves are also required in other parts of the system and will remain an important product within our
range.

30
Variable Flow – List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
(MENA/Asia)
Drive incremental growth
utilizing Channel
Management
Market share
– customer
growth
Q4 2017
2 Served market
expansion – PICV
Launch full range, up to
DN300
Market share
– NPD
Q1 2016 $2.4m
3 Technical Advisory Increase window to market
by organising seminars,
targeting consultants and
contractors to promote our
Variable Flow
Market share
– Technical
Q4 2016
4 Cost/Profitability VE on LCV and PICV,
supported by Kaizen
Market share
– Technical
Q2 2016
5 Served market
expansion – OEM
Partner with Ability/Trox and
agree LTA for direct OEM
supply
Market share
– OEM
Q1 2016
6 Served Market
expansion – Lead
Time
Create final assembly
cells in MENA to improve
Value Proposition
Market share
– customer
growth
Q3 2017
Variable Flow

31
Full Range
PICV
Q1 2016
Improve
profitability
of LCV &
PICV
Q2 2016
Establish
OEM Supply
of LCV
Q2 2016
Increase
Window to
Market
Q1 2017
Reduce LCV
LT into
MENA and
Asia
Q3 2017
Channel
Management
Q4 2017
E-PICV?
Further
integration
of
Mechanical/E
lectrical
towards
solutions ,
rather than
standalone?
?
Total impact of £xxm
Variable Flow Strategic initiatives to 2018
Our strategic initiatives are well balanced across the 3 key regions, enabling us to create Value Propositions via
a number of levers. Channel Management and Technical Advisory, supporting the building blocks of a Full and
Profitable Product Range.

32
DN20-DNxx size range,
with strong pull for Static
Valves. Competitors
have yet to full establish
local presence. Use
Technical advisory via
Seminars to drive
adoption. Of Variable
Flow.
United Kingdom
Predominantly
Bronze, within the
DN15-DNxx size
range. Significant
pull towards
Variable Flow,
linked to BMS.
MENA
Predominantly Iron, within the
DN20-DNxx size range.
Technical advisory via Seminars
and deployment of xxx continues
to drive adoption.
Strategic Initiative XX – Market behaviors across our 3 key
regions vary dramatically – NPD has helped to position us to win
in each region.
We will drive product adoption within the less mature MENA and Asian markets, via Technical Advisory. This
process will support the education of our Channel Partners and Contractors, to the benefits of Variable Flow
solutions, compared to traditional Valves and significantly increase Window to each respective Market.
UK
UAE
Qatar Oman
KSA
Kuwait
Thailand
Singapore
Hong
Kong
Malaysia
Indonesia
Philippines
Following successful launch of a full PICV range, market adoption and behaviours has confirmed our
expectations of regional variations in product uptake.

33
Strategic Initiative XX – Direct supply of a Single Manifold to Fan
Coil Units (FCU), is a good fit in terms of our customer
base/product range, in this key adjacency.
Crane and Hattersley has a competitive advantage in the UK, due to high brand awareness and specification by
Consultants. The market is dominated by a small number of providers with significant share, with low barriers due to no
formal Supply Agreements.
Opportunity exists for a 14% margin improvement dealing directly with OEM’s, utilising brand strength and USP’s to
implement LTA’s. Value Stream efficiency improvements also likely, due to a level demand load.
Following extensive VOC with Ability and Trox, VE has
commenced on our existing H-Body. When complete, this
will significantly reduce weight, and gain competitive
advantage, via the integration of secure supporting
structures, reducing production assembly times.
25
12
8
4
UK OEM Single Manifold Volume
(000's)
Ability
Diffusion
Trox
Other
Strong
• Negotiations underway for supply of
light weight LCV solution.
Weak
• Relationship requires development.
Focus is to deliver Ability and Trox
solutions, leveraging lessons learned
with Diffusion.
Strong
• Negotiations underway for supply of
light weight LCV solution.

34
Strategic initiative XX – Identifying opportunities to increas
Window to Market, via a deep dive of the MENA.
Company
Average sell
vs. Crane
Competitive
advantages
Channels Direct Distribution
3…
4
12
4
24
4
2…
4
84
+7% -6% +5% -3% -4%
Variable Flow
Despite a highly competitive market, we will utilise Technical Advisory to create competitive advantage, with
exceptional lead times via the MENA DC, supporting unparalleled local Service via Channel Partners. This will
increase our window to market to 5.4% by 2018.
Direct Distribution Distribution
Window to
Market
21.7%
Win Rate
17.5%
Market
Share
4.4%
Current market
share
Window to
Market 38%
Win Rate 10.5%
Market
Share 5.4%
Target market
share
Market
Share
Distribution
Competitive
Rivalry
Threat of
New Entry
(Medium)
Buyer Power
(Significant)
Threat of
Substitution
(Medium)
Supplier
Power
(Medium)
Focus on market fragmentation, high
competition, focus on Buyer Power, and
Supplier Power dynamics – what can we do
to influence/win?
Call out significant players and their
respective competitive advantages.

35
Porters 5 Forces – Variable Flow MENA
Competitive
Rivalry
Threat of
New Entry
(Medium)
Buyer Power
(Significant)
Threat of
Substitution
(Medium)
Supplier
Power
(Medium)
Threat of New Entry
• Economies of scale to set up and sell in to MENA
(DC, Inventory, Sales Teams).
• Market is dominated by strong brands.
• Contractor/Consultants prefer to use ‘known’
brands.
• Technical expertise is required to support
distribution and Contractor knowledge gap.
• Market aversion to counterfeit and Chinese
product. Competitive Rivalry
• Industry growth is driven by the high
proportion of adoption to PICV
solutions, as well as significant
infrastructure investment.
• Intermittent overcapacity driven by
new entries seeking to penetrate the
market.
• Product differentiation is limited with
high levels of similarity.
Buyer Power
• Well documented specification data allows for
ease of switching products.
• High number Suppliers offering similar products
leads to long term price erosion.
• Introduction of counterfeit product and quality
issues with New Entries increasing brand
identity/equity.
Supplier Power
• Limited Supplier Power, due to high
number of competitors.
• Medium levels of substitution , with 2
Port + DPCV being the primary
alternative.
• Total cost of valves, relative to
Building Cost is low.
• Ability to differentiate, driven by route
to market (distribution vs. direct)
range (full vs. limited) and integration
with BMS.
• Backward integration (selling direct)
is also a recent trend within the
region.
Threat of substitution
• Utilisation of DPCV’s and 2 Port’s is a genuine
threat to the adoption of PICV’s within the region,
due to limited understanding.
• Low cost of labour, increases risks of purchasing
multiple, lower value valves, with local assembly.
We need to increase our window to market through technical seminars to increase specification by Consultants.
This will drive our Market share to 5.4% by 2018.

36
Served Market Expansion PICV –
Application assessment
Variable Flow
There are 2 primary drivers for PICV applications; AHU’s and FCU’s. A review of the Valve configurations within
each application has confirmed a total Market of 150k PICV’s within the MENA

37
Served Market Expansion PICV - Market and
Adoption
0.0
10.0
20.0
30.0
£0.0 £0.0
£15.4
£11.6
£27.0
£m
Walkthrough from MENA Deep Dive
Variable Flow
Triangulating the output from the Application Assessment, supported by VOC has confirmed the Market size of
£27m. The primary driver in this increase, from the Deep Dive, is accelerated adoption within the Region.

38
Served Market Expansion - Route to Market
and Position to Win
Route to Market pre-established
Current market share Target market share
Variable Flow
Consultants and Contractors drive the decision on the system design, which directly impacts Valve Selection.
We need to increase our window to market through technical seminars to increase specification by Consultants.
This will drive our Market share to 5.4% by 2018.

39
3.0
3.8
4.7
5.1
0.6 0.7
1.2 1.4
-
0.0
0.2
0.3
-
0.1
0.1
0.2
0.0
0.5
1.3
1.7
0.0
1.0
2.0
3.0
4.0
5.0
6.0
2014 2015 2016 2017
PICV Sales Estimate - £m
Deep Dive
EXPORT
HOME FCU
HOME Controls
HOME Mech
Based on our new learnings we expect the
following revenue growth until 2018
Growth in 2016 will come from increasing our win rate with contractors via Channel Management and
increasing our window to market in MENA with seminars. This will be complimented with LCV assembly
within the MENA DC, in 2017.
0.6
1.3
2.9
3.6
Requires update
to remove 2014
and focus on
2016-2018

41
Building Services – Variable Flow MENA
Strengthen our global market position by increasing our window to market to 38% through technical
seminars and consultant specifications whilst improving the range, to delivery a 5.4% Market share
(£1.76m) by 2018.
Served Market Expansion
Market Share – Customer Growth
Market Share – NPD
NPD
Launch In house DN32-DN50 & up to DN300
(Factored)
VE on PICV and LCV
Technical Seminar
…
Enablers
Variable Flow

42
List of strategic initiatives - MENA
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
utilizing Channel
Management in MENA to
address xx% segment growth
Market
share –
customer
growth
MM/YYYY
2 Served market
expansion – PICV
PICV adoption offers
significant growth potential
Market
share - ?
$4.68m
2 Served market
expansion – PICV
Launch In house DN32-DN50
& up to DN300 (Factored)
Market
share - NPD
$4.68m
3 Technical Advisory Organise seminars in the
MENA targeting consultants
and contractors to promote
our PICV and its benefits
Market
share –
Technical
4 BIM
Variable Flow

43
In a Variable Flow System, the consultant may decide
to use DPCV+Balancing+2-Port Control valves or the
PICV arrangement.
FCU FCU FCU FCU
DPCV
Balancing
Balancing
2-Port
Control
DPCV + Balancing Valve + 2-Port Control Valve
Arrangement
PICV Arrangement
PICV
• All new buildings are being designed with Variable Flow Systems.
• PICV arrangement is much cheaper and has less leak paths. It is one single valve
performing 3 functions.
• The decision on the system design depends on the consultant’s preference and
experience.
range.

44
Full range of PICV’s enables us to
compete in our served market
£xxm
36%
£xxm
38%
Broadest range of valves, manifold
assemblies, and fittings for heating
and cooling applications.
• Valves and fittings in the <2”
range
• Active control valves
• Actuation to support links to
BMS
Key Features Application
Product
• Valves and fittings in the <1 ¼”
range
• Active control valves
• Manifold assemblies –
Dominator & Hook up
Supplier of traditional valves to hot &
cold water applications.
Thermal control valves and Pressure
reducing valves added in 2013 to
extend range offering.
£xxm
35%
• Valves and fittings in the >2”
range
• Active control with Actuation to
support links to BMS
• Highly competitive
Revenue £m
2015F and
SP%
Broadest range of valves, manifold
assemblies, and fittings for heating
and cooling applications.
Hookup/Dominator
with MIH PICV
DN15-DN32
MIH PICV DN20-
DN50
Factored DN50+
( Samyang)
range.

45
List of strategic initiatives - Asia
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
utilizing Channel
Management in MENA to
address xx% segment growth
Market
share –
customer
growth
MM/YYYY
2 Served market
expansion – LCV
Full range to support market
growth.
Market
share - NPD
$4.68m
3 Served market
expansion –
Butterfly Valve
Cast Iron Valve (Factored)
DN15-DN50
Market
share –
NPD
$2.0M
4 Served market
expansion – Gate
Valve
Brass Gate Valve (Factored)
DN15-DN50
Market
share –
NPD
$1.6m
5 Served market
expansion - ANSI
Market
share - NPD
6
Variable Flow

46
Our strategy for other products not
covered in the initiatives
Initiatives
How are we managing the products
 Grow XXX
 Autoflow to CFR
 Develop NNN
 Commpac
Low High
Mkt
attractiveness
H
L
Business strength
XX
X
XX
X
XX
X
 If you have a long tail of products, use this
portfolio view to depict your intended
strategy. We do not expect one pagers for
each product line
Variable Flow

47
Our channel management strategy will increase market share and
our window to market
• We will to continue to
focus on our 4 target
countries
• We will role out channel
management to our
remaining channel partners
• Additional HNH
resource required
Market Penetration
• Competitive PICV flow range
• Single/ Multi-manifold
solutions
• Build on ISF success
• Actuators for ¼-turn ball and
butterfly valves
• Factored range
• Proven demand in the
region
Product Development
• Detail aspirational markets
here and reasoning
Market Development
Consider your capabilities as you decide your course of growth: Capacity, Prod development, R&D,
Financial, S&M, Human resource, customer svc, channel power, time to market, etc.,
MENA Channel
Management

48
0
20
40
60
80
100%
KSA
Econosto
Hattersley
Crane
Others
TA Hydronics
Nibco
£53M
UAE
Econosto
Crane
Others
TA Hydronics
Nibco
£50M
Econosto
Hattersley
Crane
Others
TA Hydronics
Nibco
£6M
Kuwait
Crane
Others
Nibco
Qatar
Econosto
TA Hydronics
£4M
Total = £115.5m (valves)
Market CAGR 3%
Crane CAGR 5%
2015F Sales Target 4 Countries
0
20
40
60
80
100%
KSA
Others
TA Hydronics
Nibco
Econosto
Crane
£62M
UAE
Others
TA Hydronics
Econosto
Crane
£59M
Nibco
Crane
£7M
Kuwait
Qatar
£4M
Total = £127M (valves)
2018 Sales Target 4 Countries
Execution of the Channel Management strategy will allow us to
maximise sales in our target countries
MENA Channel
Management

49
Jason Eastwood
VP sales
£21.4m
Ryan Pickard
HNH
UAE BASED
Q2 2016
HNH Vacancy
Murad Dalbah
CFS
KSA BASED
M. Shetta
CFS
UAE BASED
Bader Yousef
CFS
UAE BASED
Q3 2015
Vacancy
TSM
Q4 2014
KSA
Kuwait
Bahrain
Egypt
Jordan
Lebanon
£5m
Qatar
UAE
Oman
KSA
Kuwait
Bahrain
Egypt
Jordan
Lebanon
£4.2m
KSA
Jordan
Lebanon
Bahrain
£4.6m
Egypt
Qatar
Kuwait
L. Mahmoud
Internal Sales
Supervisor
BS&Utilities
Q3 2015
MENA
CFS & HNH
£3.0m
UAE
Oman
*Figures are based on 2014 Orders Plan
*Red - Target Countries
*New Business Acquisition/Development
A Vishnu
Internal Sales
HNH
Dubai
MENA – Internal Office
Consider using map instead
It is key that we have the right resource level in place to drive
channel partner engagement
Additional Hattersely head
planned for Q2 2016
MENA Channel
Management

50
The execution of the MENA Channel Management Strategy is
reading through in our order in-take
• Al Amana/ Leminar
• ARCOM have opened and sales
office in Jeddah (eastern
province)
• Improved balance between
project and master distributor
focus
Key Successes
• Leminar appointed for UAE in
place of Al Amana
• Expected to add £250k
incremental in 2015
Key Successes
MENA Channel
Management

51
Channel Management will focus on improving our
attractiveness to our channel partners
• We are targetting a Crane attractiveness score of 80% across our target countries by 2018
• In the UAE, channel management will focus on revitalising the Hattersley brand to take share from key competitors
• In Kuwait, we will look to leverage our relationship with Rezayat KSA to drive engagement, otherwise we will look to exit.
2018 2018
Country Channel Partner Sales 2018 £ Country Channel Partner Sales 2018 £
KSA ARCOM 4,977 KSA Rezayat 1,536
UAE TOSC/ TPC 3,526 UAE Leminar 638
Kuwait Asia Electro 1,722 Kuwait Rezayat 118
Qatar Al Riyadh 1,413 Qatar Leminar 1,775
MENA Channel
Management

52
We will continue to execute on the key areas that bring
us closer to our channel partners, driving engagement
• Strategic
Arcom
Leminar
Leminar
TOSC
Technical
Parts
Asia-Electro
Al-Riyadh
Rezayat
1 Channel Scorecard        
2 Internal Planner        
3 External Planner (New, Invest or Exit)        
4 Channel Partner KPIs agreed        
5 Channel Partner KPIs - (Internal for BS)        
6 Organisational structure incorporating decision matrix        
7 Organisational structure review cadence        
8 Vision and Strategy of Channel partner documented        
9
Customer/Growth strategy of Channel Partner
documented        
10 Call Planner Cadence - Schedule including attendees        
11
Call Planner Cadence - Diarised Meetings for remainder
of Quarter*        
12 Customer service survey completed        
13 Sales Support Tools supplied        
14 Channel Partner Upskilling/ Training Plan in place        
15 Channel Partner Incentives in place        
16
A product champion accountable and responsible for our
products in place        
17 Commitment to hold new products in stock - ie PICV        
18
A dedicated product champion accountable and
responsible for our products        
19
A dedicated Techical Specification resource to specifiy
CFS & HNH to CE        
20
The business is sharing performance data eg:
Contractor Spend, by Product Group, Sales Out,
Inventory Levels etc
       
21
Agreed joint annual marketing plan and promotional
budget in place for the year        
22
The business shares qualified project leads and potential
new account opportunities        
23
The business is holding at least a minimum stock level
as specified in the annual business development plan or
distribution agreeement
       
KSA Qatar Kuwait
UAE
MENA Channel
Management

53
We have identified the training gaps within our channel
partners and have a clear plan to address them
• The TSM will undergo training so that support/ training can be provided where most needed (HNH initially)
• HNH level 3 Train the trainer in Q3 2016 to capture start of additional HNH RSM
Level 1 (2 hours)
General Product & Company
Overview
Level 2 (8 hours)
Full Product Understanding
Level 3 (8 hours)
Detailed Technical Knowledge
on Products
Q3 Q4 Q1 Q2 Q3 Q4
Arcom - KSA
TOSC - UAE
Tech Parts - UAE
Al Riyadh - Qatar
Asia-Mech - Kuwait
Rezayat - KSA
Leminar - Qatar
Leminar - UAE
HNH
Level 3
(RSM x 2)
Level 2 (RSM x 1)
Level 1
(RSM x 1)
Level 2
Train the
Trainers
(AL)
Level 3
Train the
Trainers
(AL)
2015
Level 1
(RSM x 3)
Level 2
(RSM x 3
Level 3
(RSM x 3)
Level 2
Train the
Trainers
(AL)
2016
Level 3
Train the
Trainers
(AL)
CFS
Need a better layout
TSM included in train the
trainer
New HNH RSM included in
train the trainer
MENA Channel
Management

54
Channel Management Road Map
• Train new starts
• HNH resource consideration
Brand 2016 2017 2018
KSA
UAE
QATAR
Kuwait
Kuwait
(improve/e
xit)
Egypt
Jordan
Oman
2015
CFS
HNH
KSA
UAE
QATAR
Jordan:
- Seasons
- Izzat Musa
- S & V
Bahrain
Bahrain
Lebanon
Egypt
Lebanon
Oman
(improve/
exit)
Revise layout
New countries?
Multiple channel partners in which countries
MENA Channel
Management

55
BU strategy
Strengthen our market position in Asia by adding butterfly and brass gate valves, improving service/
lead times and implementing channel management to grow profitable sales from £2.46m to £3.8m by
2018
Strategic objective Rev: £3.8M 2018
- Competitive range of brass and butterfly valves
- Channel management strategy
- Top grade existing channel partners
- Appoint new channel partners
• Training and advisory
• BIM
• Form E/ Direct Shipment
Enablers
 Launched H1 2015
 RSM training during Q4 2015 in
preparation for 2016 implementation
Asia Channel
Management

56
Our channel management strategy will increase market share and
• We will to continue to
focus on our 6 target
countries
• Resource in place
• Roll out channel
management
Market Penetration
• Competitive PICV flow range
• Actuators for ¼-turn ball and
butterfly valves
• Factored range
• Proven demand in the
region
Product Development
• Appoint channel partners
in Malaysia
• Largest of our target
markets ($46m)
Market Development
Consider your capabilities as you decide your course of growth: Capacity, Prod development, R&D,
Financial, S&M, Human resource, customer svc, channel power, time to market, etc.,
Asia Channel
Management

57
0
20
40
60
80
100%
Malaysia
TA Hydronics
KITZ/ TOYO
Oventrop
Others
Tozen
Mueller
22
Indonesia
KITZ/ TOYO
TA Hydronics
Others
Tozen
19 1
Thailand
TA
Hydronics
KITZ/
TOYO
Crane
£0.93m
Others
Tozen
Mueller
11
HongKong
TA Hydronics
KITZ/ TOYO
Others
Tozen
Oventrop
34
Singapore
KITZ/ TOYO
Crane £0.6M
Others
Tozen
Oventrop
13
Crane £0.003m Crane £0.13m
Philippines
Crane
£0.47m
KITZ/
TOYO
Crane £0.27M
TA Hydronics
Market CAGR 5%
Crane CAGR 16%
2015F Sales Target 6 Countries 2018 Sales Target 6 Countries
We will grow our share/ sales from X to Y
0
20
40
60
80
100%
Malaysia
Others
Tozen
Mueller
Oventrop
TA Hydronics
KITZ/ TOYO
26
Indonesia
Others
Tozen
TA Hydronics
KITZ/ TOYO
23
KITZ/
TOYO
Crane
£0.76m
1
Thailand
Others
Tozen
Mueller
TA
Hydronics
KITZ/
TOYO
Crane
£1.2M
12
HongKong
Others
Tozen
Oventrop
TA Hydronics
KITZ/ TOYO
37
Singapore
Others
Tozen
Oventrop
KITZ/ TOYO
Crane £0.98M
16
Crane £0.12m Crane £0.426M
Philippines
Crane £0.3m
TA Hydronics
Asia Channel
Management

58
Singapore
Malaysia
Indonesia
Philippines
Thailand
Hong Kong
2015F £0.6m
2015F £1.86m
Alan Rees – Area Sales Manager
Jeffrey Lim– Area Sales Manager
The resource we put in place in 2014 is bearing fruit and the timing
is now right to implement channel management strategy
Insert 2014 - 2018 sales
Asia Channel
Management

59
Top grading channel partners
Maintain
Exit
Grow
Country Channel Partner 2015F Country Channel Partner 2014F
Improve
Maintain
Exit
Grow
Improve
Asia Channel
Management

60
Market sizes and small shares means we can appoint multiple
channel partners in some territories
Current state
Future state
- multiple channels
Asia Channel
Management

61
Channel Management Road Map with timings
RSM training
On-board channel partners
Complete Scorecards
Appoint/ Exit/ Improve
Asia Channel
Management

The top three strategic priorities to drive growth are …..
62
Crane Strategic Planning Process
2. Service and Lead time
1. Suitably specified products and related services
3. Customer Intimacy and Channel
Management
1
2
3
Asia Channel
Management

63
IC
Training gaps and plan
Metrics – sales and orders, other
Orange sheet strategies
Ratings – improvements?
Training and advisory – Leminar Seminar,
Challenges and mitigating strategies
Channel partner roadmap – who to add in the coming years
Inventory
Hattersley lack of depth – address Rezayat issues or exit, execute channel search to shortlist
potentials, same for Kuwait.
How to drive/monitor/ encourage NPD sales
Status of Agreements
Asia Channel
Management

64
 Safety and Pressure Relief
valves
 Premium quality, fastest delivery
speed, tested to the latest British
Standards with third party certified
discharge capacities
£5.84M
54%
 Pipe Interrupters
 Premium range and short lead time
serving potable water systems £0.48M
37%
 Sight glasses and sight flow
indicators
 Premium quality, bespoke range suiting
to wide variety of fluids .Custom
products for special applications are
easily accommodated.
£0.29M
40%
 Air Eliminators, vent cocks
and other auxiliary products
 Premium range by offering robust
construction, reliable operation which
lasts for many years
£0.27M
15%
 Compression Fittings, Sistem
P- Push in, Air valves
 High quality meeting various industry
standards. Additional safety provided
by an engineering fittings.
£1.70M
41%
 Pipe Expansion joints
 Premium quality, High Performance
and Bespoke range
£0.73M
35%
 Lubricated Plug and Steel
Valves
 XXX TBC
Solutions/products view
Industrial Brands Current Products Value Proposition
2015F Revenue /
Ship Margin
NABIC
Rhodes
IAT
Rhodes
Brownall
Wade
Posiflex
General
Valves
Industrial

65
We have seen solid growth in this range due to value
engineering and price increase actions.
8.7
9.0 8.9
9.2
9.4
8.6
3.2 3.0
3.9 3.9 3.7
4.2
36%
33%
44% 43%
40%
49%
2010 2011 2012 2013 2014 2015F
Historic Sales and SP - Industrial - £m
Sales SP SP%
• We have good brand awareness but have seen a decline in market share for some of the product lines
• The reduction in forecast for 2015 is primarily IAT where our main customer Ecolab over stocked last year The
PY IAT sales were 120% above Plan.
• The growth plans will be discussed in the next few slides.
General
Valves Sales &
SP% to be
added
Industrial

66
We have a strong brand portfolio to grow ourselves in this market.
With the right channels, products and support activities we will be able
to strengthen our position in this vertical
Industrial
(Direct &
Distribution)
HVAC
WATER
PHARMACEUTICAL
CHEMICAL
OIL & GAS
POWER
General
valves
General
valves
General
valves
General
valves
General
valves
General
valves
Industrial

67
NABIC - Porter’s 5 Forces
New Entrants - MEDIUM
• Brand identity - NABIC has very strong brand recognition
increasing the barriers for new entrants.
• Distribution still holds the large proportion of the market, which
increases the difficulty for new entrants to convert large accounts
such as Wolseley and BSS
• Approvals e.g. WRAS/PED represent additional barrier to entry
• High loyalty
• In UK market main competitors are Bailey Birkett,
Gresswells and Spirax Sarco
• Low switching costs
• Competition offers wide range of products regarding
pressure rating whereas NABIC offers only up to
12.5bar
Industry Rivalry - HIGH
• Existing channels are
direct and distribution
• NABIC range is
replaced with Bailey
Birkett where stocks
are not available
• Price portrayed high
compared to
competition
Buyers - MEDIUM
Suppliers - LOW
• Bargaining power is
low as we are using
commoditised
materials
• The risk of
downstream
integration is medium
as product concept is
relatively simple
Substitutes - LOW
• There is no existing product substituting the function of the
safety valves.
• Safety valves are legal requirements in some countries
• The pressure and threats in this industry are Medium/High and originates predominately from the internal
competition..
Industrial

68
WADE- Porter’s 5 Forces
New Entrants - HIGH
• Low barriers to entry as product doesn’t require advanced
technologies
• Relatively easy access to channels to market
• High volume manufacturers , competing in price
• Many players in the market
• Risk of upstream
integration is high
• Price war between the
main players
• Low switching costs-
preference to an
alternative supplier if
the product is not
available in the
specified lead time and
price
Buyers - MEDIUM
Suppliers - MEDIUM
low as we are using
commoditised
materials
• The risk of
downstream
integration is high
• Switching costs are
low as it is easier to
make a replica of the
products
Substitutes - LOW
• New techniques for connecting pipes and tubes hence
resulting is saving time and money on site.
• The pressure and threats in this industry are High as the industry and product are relatively simple allowing
many players to compete on price.
Industrial

69
IAT - Porter’s 5 Forces
New Entrants - LOW
• DVGW is a barrier to entry
• Lead free content limits new entrants
• Seppelfricke and Honeywell are big players in
Germany
• Price competition is aggressive
• Alternative players are
available in the
German market
integration is high
Buyers - MEDIUM
Suppliers - LOW
low as we are using
commoditised
materials
• The risk of
downstream
relatively simple
Substitutes - HIGH
• Air gapping will prevent any contaminants in the sink from
flowing into the potable water system by siphonage and is the
least expensive form of backflow prevention
• The pressure and threats in this industry are Medium/High as competition positions the products in much
lower price point.
Industrial

70
RHODES - Porter’s 5 Forces
New Entrants - LOW
• Complexity and variation of the products represent a barrier to
entry - specific design either require stocks (make to stock) or
speed of design (make to order)
• High volume manufacturers , competing on price
• Low to medium switching costs as standards are
widely known
integration is low
• Price war between the
main players
• Low switching costs-
preference to an
alternative supplier if
the product is not
available in the
specified lead time
Buyers - MEDIUM
Suppliers - LOW
low as we are using
commoditised
materials
• The risk of
downstream
integration is low
• Switching costs are
moderate as patterns
for casting represent
a significant cost
Substitutes - MEDIUM
• Customer preference for a flow meter instead of a flow
indicator for better accuracy.
• The pressure and threats in this industry are Medium as competition in the industry is shifting to focus on price
rather than quality or service.
Industrial

71
BROWNALL - Porter’s 5 Forces
New Entrants - HIGH
• Barrier to entry is low as product doesn’t require advanced
technology
• Competition has products which are much cheaper
and lighter and they are readily available in the
market place.
high because of the
difference in the
physical aspects of the
product
• Price competition is
aggressive
Buyers - MEDIUM
Suppliers - LOW
low as we are using
commoditised
materials
• The risk of
downstream
relatively simple
• Automatic air eliminators and being substituted by standard
air eliminator as they are much cheaper
• The pressure and threats in this industry are High as competition offers modern product design which is much
lighter and price competitive.
Industrial

72
POSIFLEX - Porter’s 5 Forces
New Entrants - HIGH
• Barrier to entry is low as product doesn’t require advanced
technology
• High switching costs as due to the end user
segments
• Competition has products which are much cheaper
and they are readily available in the market place.
Industry Rivalry - MED
high because of the
difference in the
physical aspects of the
product
• Price competition is
aggressive
Buyers - MEDIUM
Suppliers - LOW
low as we are
rebranding the range
to sell in UK and ROW
with our selling
agreement
• The risk of
downstream
relatively simple
• Bespoke expansion joints are being replaces by moulded
rubber expansion joints which are cheaper
• The pressure and threats in this industry are Medium / High as competition offers less quality product at a
cheaper price
Industrial

73
General Valves - Porter’s 5 Forces
New Entrants - HIGH
• Distribution still holds the large proportion of the market, which
increases the difficulty for new entrants to convert large accounts
such as Wolseley and BSS
• Approvals e.g. WRAS/PED represent additional barrier to entry
• High loyalty
• In UK market main competitors are Bailey Birkett,
Gresswells and Spirax Sarco
• Competition offers wide range of products regarding
pressure rating whereas NABIC offers only up to
12.5bar
• NABIC range is
replaced with Bailey
Birkett where stocks
are not available
• Price portrayed high
compared to
competition
Buyers - MEDIUM
Suppliers - LOW
low as we are using
commoditised
materials
• The risk of
downstream
relatively simple
Substitutes - LOW
• There is no existing product substituting the function of the
safety valves.
• Safety valves are legal requirements in some countries
To be
completed
Industrial

74
GE Matrix
• We will be seeing growth in NABIC and IAT due to lead time and business development activities. Posiflex is project
specific where it is dependent on the lifecycle
• Brownall and Wade is in a declining market
• Rhodes following the range rationalisation we will able to maintain our sales.
MEDIUM
LOW
MEDIUM
HIGH LOW
HIGH
Business Unit Strength
Market
Attractiveness
General valves
Industrial

75
Strategy going forward
BRANDS ACTIONS MERITS DEMERITS
NABIC GROW Investing in NPD and geographical
expansion will help us improve our
window to market
Additional resources and
expenditure inorder to win in the
market
IAT GROW We have the knowledge & channels to
benefit from the trend of stringent
potable water applications
Expansion of the sales and
introducing further range
RHODES MAINTAIN Range rationalisation will enable us to
retain some sales
Loss of some revenue
BROWNALL MAINTAIN Value Engineering will protect the
revenue and profit stream
Current competitors will gain our
share
WADE MAINTAIN Revenue stream will be available with
slow decline
Customers will irreversibly shift to
others suppliers/techniques
POSIFLEX GROW Business development activities will
help us improve our sales
Additional resources required
GENERAL VALVES MAINTAIN Marcomms improvement activities will
grow the revenue and profits
• In 2014 it was about identifying strategies to grow or maintain this range. In the next 3 years, Strong brands like
NABIC and IAT supported with high quality and service levels with minimum investment can add incremental sales.
• We also need to maintain our sister brands like Rhodes, Wade, Brownall which were eroded by lead time and price.
Industrial

76
Industrial
- Customers
- Products/NPD
- Innovation
- New markets
- Channel
- Process
…
Enablers
foundation
CS to pull the strategic initiatives
Industrial

77
NABIC is the strongest among Industrial. Even though
we are playing in a mature market there are ways we can
look into receiving incremental sales
4.3 4.3 4.2 4.4 4.6 4.7 4.4
0.8 1.0 1.0 1.1
1.2 1.1 1.5
68%
71%
67% 67%
50%
56% 54%
0%
10%
20%
30%
40%
50%
60%
70%
80%
-
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
2009 2010 2011 2012 2013 2014 2015F
NABIC Sales and SP% History (£m)
NABIC JET/BOSS Branded SP%
Market Size
• We will improve our window to market through new products, business development activities and supporting
marketing collateral .
• The strategies will be discussed detailed in the next slides.
Industrial

78
Stage 3-
September
‘15
Stage 4-
December ‘15
Stage 5- April
’16
Stage 6 –July
‘16
1. Expand the range up to 25bar
1
We made progress on NABIC NPD project and this was put on hold as we re-
prioritised the resources to other projects. The new sign off date is scheduled
for September 2015 and launch July 2016 vs July 2015
1. Business Development Opportunities
2
Change in
springs,
body and
seat
Expanding our pressure range up to 25bar and exploring
into wider geographies is a growth opportunity
We have seen opportunities in South America and Far East through our outbound and external sales team on enquiries on our
existing NABIC range. With strategic price points and supporting activities we should be able to convert these into sales.
Example : Opportunities in South America and Far East
Industrial

79
NABIC has limited front end team hence an updated
website and necessary tools are required to win in the
market
1. Marketing strategy to win
3
NABIC Website
NABIC E-commerce
• In order for us to improve our incremental sales we will be focusing on revamping our current website and also
introduction on E-commerce.
• The target market for e-commerce are the small installers who buys a small numbers of valves over the counter.
This wont cannibalise our sales with our existing customers as they currently have an account with volumes
discounts.
NABIC Price List
Industrial

80
WADE is a premium brand selling compression fittings
and tubing to UK and Belgium market.
Market Size
• Our strategy is to maintain the sales through additional sourced products, business development activities and
marketing collateral to support
1.79
2.18
2.37
2.04 1.94
1.73 1.70
40%
44%
33% 34%
31%
34%
41%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
-
0.50
1.00
1.50
2.00
2.50
2009 2010 2011 2012 2013 2014 2015F
Wade Sales and SP% History (£m)
Industrial

81
We have seen a decline in sales from our biggest
customer as they were moving from compression to
Push-in fittings
1. Expand our range to include Push-in fittings
1
• This is sourcing exercise and this will not only support Atlas who is our biggest customer for Wade range but we can look into
introducing this as part as our standard range for UK customers
Example: Opportunities for Push-in Fittings from
Atlas Copco
Even though we have a range of
Push-in fittings, we wont be able to
meet the customer requirement.
This is currently in Ideation.
• VOC from other customer also showing trend of substitution.
– “There is a trend of volumes moving from compression fittings to other techniques of unions. Push-in fittings is one of
them” – Gavin Fryer – Pipe Center Lead Production Manager
Industrial

82
Following the acquisition from Delta we have harvested
this brand and most of the collateral were outdated and
lacks clarity.
1. Marketing and Commercial activities to drive the brand
2
Wade Price List
Wade Catalogue
Wade e-shots
• With these initiatives will be able to promote this brand and increase our window to market
Industrial

83
In 2014 we made a start on contacting our dormant accounts
across UK and Europe who stopped buying from us and we
have already seen an improvement in our sales
1. Converting dormant accounts and potential new customers
3
427,941
11,416 4,311
128,552
-
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2012 2013 2014 2015 UNTIL JUNE
WADE Dormant Accounts Sales £
• We will continue to focus on XXX
Industrial

84
IAT margins have been improved due to the efforts we have
done on LCC sourcing. A growing European market and new
products will help us to win
0.61 0.59 0.56 0.57
0.74
1.58
0.48
26%
28%
31% 32%
23%
-6%
37%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
-
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2009 2010 2011 2012 2013 2014 2015F
IAT Sales and SP% History (£m)
• XXXX
1. Expand range to XX
1
1. Business model improvement leading to new
customers
2
Industrial

85
Following our decisions to keep Rhodes in the
Industrial vertical we have started working on the
improvement actions to get this range profitable
0.49 0.48 0.49
0.43
0.31 0.31 0.29
55%
59% 57%
63%
45% 45%
40%
0%
10%
20%
30%
40%
50%
60%
70%
-
0.10
0.20
0.30
0.40
0.50
0.60
2009 2010 2011 2012 2013 2014 2015F
Rhodes Sales and SP% History (£m) 1. Review the range and get the business model
1
1. Partnering with Channel partners to improve
2
• XXXX
Industrial

86
0.55
0.46 0.47
0.39 0.37
0.34
0.27
41%
50%
41% 41%
32%
37%
15%
0%
10%
20%
30%
40%
50%
60%
-
0.10
0.20
0.30
0.40
0.50
0.60
2009 2010 2011 2012 2013 2014 2015F
Brownall Sales and SP% History (£m)
Industrial

87
0.55
0.46 0.47
0.39 0.37
0.34
0.27
41%
50%
41% 41%
32%
37%
15%
0%
10%
20%
30%
40%
50%
60%
-
0.10
0.20
0.30
0.40
0.50
0.60
2009 2010 2011 2012 2013 2014 2015F
POSIFLEX
Industrial

88
0.55
0.46 0.47
0.39 0.37
0.34
0.27
41%
50%
41% 41%
32%
37%
15%
0%
10%
20%
30%
40%
50%
60%
-
0.10
0.20
0.30
0.40
0.50
0.60
2009 2010 2011 2012 2013 2014 2015F
GENERAL VALVES
Industrial

89
List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
SUMMARY
Industrial

90
NABIC : List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
 Arrange from highest impact to lowest impact (this is the order in which we
will review growth initiatives)
 Please follow waterfall page in section “Summary” to accurately classify
initiative type
• NABIC HP-NPD
• NABIC E-comm
• NABIC website revamp
• Business Model
• Business Development activities UK and Mainland
Europe- ideally Germany
Industrial

91
IAT : List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
 Arrange from highest impact to lowest impact (this is
the order in which we will review growth initiatives)
 Please also submit this for the whole business in
excel format
• IAT new products- Strainers
• IAT business development through
Mainland Europe
Industrial

92
WADE : List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
 Arrange from highest impact to lowest impact (this is
the order in which we will review growth initiatives)
excel format
• Price increase
• Stainless Steel Fittings and Push
in fittings- NPD
• Business Development- Regain
lost UK customers
• Marcomms activities to support to
enhance the brands
Industrial

93
RHODES : List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
• Cost improvement –
review the SP%
• Review the channels-eg:
BSS want to sell large
sight flow glasses
• Eriks flat in Netherlands
so look into other big
customers
• Reenergise the brand
through Marcomms
activities
Industrial

94
BROWNALL : List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
 Arrange from highest impact to lowest impact (this
is the order in which we will review growth
initiatives)
 Please follow waterfall page in section “Summary”
to accurately classify initiative type
excel format
• Launch new range of air
eliminators light ones
• Business Development to
compete the brand in MENA/
far East
• Marcomms activities to drive
the brand
• Review the cost structure and
improve SP%
Industrial

95
POSIFLEX : List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
• As the business
strategy from last
year.. Further show
the progress we are
making
Industrial

96
HATTERSLEY : List of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..
• Here both LPV and
Stainless Steel
• LPVs –
Complete all the
marcomms
activities
• Review the
channel to
market and
business
development
activities
• Steel valves –
Dual Branding
• TBD
Industrial

97
How will we win?
Lead times
Cost
products
Crane
significantly
above
market
average
significantly
below
Rationale
1
2
3
4
5
markets, globally
Competencies
Do I need to have this different
brands they are so different?
Already have this in archive
somewhere for individual brands.
Industrial

98
Served market – 2015: $xB
XX% xx% xx%
Mkt CAGR
(15-18)
xx% xx%
12
50.0%
8.0%
20.0%
44
25.0%
Segment 3
20.0%
Competitor 4
22.0%
15.0%
Segment 2
Segment 1 Segment 4
20.0%
50.0%
5.0%
15
Segment 5
50.0%
Competitor 3
Competitor 2
Crane
23
40.0%
19.0% 50.0%
45
62.0%
Competitor 1
13.0%
26.0%
5.0%
xx%
$XB
XX% xx% xx%
Mkt CAGR
(Last 3 yrs)
xx% xx%
xx%
Show total
market,
future
CAGR and
historical
CAGR
XX% xx% xx%
Crane CAGR
(Last 3 yrs)
xx% xx%
XX% xx% xx%
Crane CAGR
(15-18)
xx% xx%
CS to prepare this. Overall market
size HZ
Industrial

99
Segmentation by brands/ products
• NABIC : Food industry, Pharmaceutical, Bulk transport vehicles
, shipbuilding industry, HVAC,
• Wade- Fuel systems, chemical and petrochemical processing
plants, as well as oil, gas and power generation industries,
nuclear, Fluid power
• automotive,
• railway, power generation, air
• conditioning, heating and ventilation,
• air compressor, oil and gas.
• Rhodes- Chemical, pharmaceutical, shipbuilding industry, oil &
gas- off shore, Water and waste water, process industry,
• IAT- Portable water applications
• Brownall- pipeline ancillaries eg: Chemical and petro chemical
plants
• Posiflex: Power, Nuclear, Petro chem, pharmaceutical , Water
and waste water, HVAC
• General valves: Heavy industrial – Tarmac,
Industrial

100
Served market growth by Brands
57
68
79
90
101
112
123
134
13
10
10
11
12
13
14
16
45
8
8
12
10
15
9
8
2018
Segment 1
Segment 2
155
2013
99
2014
90
5
2017
144
6
2016
133
7
2015
122
2013
77
2014
110
2012
63
Segment 3
While the Mekko provides a static view of the market, please show a dynamic
view of the market based on your segmentation. You may choose this or other
views but it is preferred that we see a time series.
xx%
xx%
xx%
xx%
This data will come from slide 2 and
4
Industrial

101
Growth drivers – XXX market
Served
market
segment 1
($XXBn)
Sub segment 1
55% sales
Sub segment 2
<10% sales
(In mid term)
(In near term)
Sub segment 2
20% sales
May be segments,
makes sense
Drivers
• Diary intake
• Regulation
• Install base
Overall trend
Sub segment 3
10% sales
(In long term)
Slide 2 will drive this slide.
Industrial

102
Industrial Market technology Trends
Good to show Wade Fittings and IAT lead free content..
New Technology
trends: P92 or P911 or
Powder Metallurgy
1300F
/46%
950F / 38%
800F / 35%
1050F / 40%
1130F / 44%
Temp
/
Efficiency
1940 1970 1990 2010 2020
P91 Piping
F91 Forging
C12A Casting
P91 Piping
F91 Forging
C12A Casting
P11 Piping
F11 Forging
WC6 Casting
P22 Piping
F22 Forging
WC9 Casting
B70 Piping
A105 Forging
WCB Casting
Crane LCC sourcing of high-alloy
castings initiated
Pacific Valve as US GGC technology leader
• Movement from compression to push
in- TBD
• Lead free content in IAT
• What else?
Industrial

103
1. Robust airline traffic driving commercial transport volumes
2. Tier 1’s increasingly migrating to direct procurement models
3. LNG market in XYZ is experiencing over supply in the mid term
4. Rig count expected to stabilize at new normal after steady
decline
5. Increasing regulation against counterfeiting in Russia
6. Consolidation of distributors in XXX sub-segment
7. TBD
8. ….
 List out the trends connected with the drivers. Please don’t litter the plan with miscellaneous
market data…only include trends relevant to supporting upcoming strategy section
 The purpose of this page is the help you synthesize and prioritize trends that “really matter”.
It is perfectly okay to have only 2 or 3 trends for each vertical section. Follow up this page
with crisp supporting pages that show the fact base/data for each trend.
 Ensure trends you pick depict/describe the headwinds or tailwinds we face/expect to face
 Broadly consider trends across customers, channel, technology, regulation, macro factors,
costs, substitution, etc., before you pick the relevant trends
1
2
3
4
5
6
7
8
Not sure how will this add value.. But I
will keep to drive the thought process
through 5 forces and other tools.
Industrial

104
need for YYY
(US$ Million)
X%...
($ Millions)
($ Millions)
4,540
3,155
2,205
1,590
6.8%
7.6%
7.4%
2021
2016
2011
2006
395
315
250
200
4.6%
4.6%
4.7%
2021
2016
2011
2006
1,110
640
360
160
2006
11.6%
17.6%
12.2%
2021
2016
2011
the trend.
1
Industrial

105
…Trend #N: TBD
N
Industrial

106
Agenda
 Market overview
 BU strategy
 Vertical/solution set strategy
 Summary
Industrial

107
We have a strong brand portfolio to grow
ourselves in this market
HVAC PHARMA CHEM WATER OIL & GAS POWER OTHERS
NABIC X
BROWNALL X X
IAT X
RHODES X X X
WADE
POSIFLEX X X X X X
GENERAL X X X X X X
• With the right channels, products and support activities we will be able to strengthen our position in this
vertical
Industrial

108
Initiatives
 Grow XXX
 TBD
 TBD
 Exit YYY
 TBD
 TBD
 Maintain ZZZZ
 TBD
 TBD
 Develop NNN
 TBD
 TBD
Low High
Mkt
attractiveness
H
L
Business strength
XX
X
XX
X
XX
X
XX
X
each product line

109
Building Services P&L’s
 This is HFM smartview template
 Please have one each for each of your vertical sections (right after your strategy
articulation)
 Aerospace, Electronics, Engineered materials, CP&E and BSU – Please fill out this
template till OP % (Non GAAP) as shown here)
 CPI, Valve services, Vending, Pumps, Supply and Barksdale – If you are able to go to
OP level with your verticals, please fill out the template as is. If you are only able to
go to ship profit, you may choose to stop there.
FSC
Net Sales - - - - #DIV/0! - - - - - #DIV/0!
Shipping Profit % 0.0% 0.0% 0.0% 0.0% NA 0.0% 0.0% 0.0% 0.0% 0.0% NA
Gross Margin % (Non-GAAP) 0.0% 0.0% 0.0% 0.0% NA 0.0% 0.0% 0.0% 0.0% 0.0% NA
Engineering % sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! NA #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! NA
Selling % sales #DIV/0! #DIV/0! #DIV/0! #DIV/0! NA #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! NA
Admin % sales (Non-GAAP) #DIV/0! #DIV/0! #DIV/0! #DIV/0! NA #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! NA
Operating Profit - - - - #DIV/0! - - - - - #DIV/0!
OP Margin % 0.0% 0.0% 0.0% 0.0% NA 0.0% 0.0% 0.0% 0.0% 0.0% NA
Operating Profit (Non-GAAP) - - - - #DIV/0! - - - - - #DIV/0!
OP Margin % (Non-GAAP) 0.0% 0.0% 0.0% 0.0% NA 0.0% 0.0% 0.0% 0.0% 0.0% NA
Note :- All amounts in US$ Millions
’15F-’18E
CAGR
15P 15F 16E 17E 18E
11 12 13 14
’11-’14
CAGR

110
Agenda
 Market overview
 BU strategy
 Water Utilities
 Summary

111
Water Utilities overview
addresses.

112
Water Utilities market sizing

113
Water Utilities Growth drivers –
XXX market
Served
market
segment 1
($XXBn)
Sub segment 1
55% sales
Sub segment 2
<10% sales
(In mid term)
(In near term)
Sub segment 2
20% sales
May be segments,
makes sense
Drivers
• Diary intake
• Regulation
• Install base
Overall trend
Sub segment 3
10% sales
(In long term)

114
Water Utilities trends in growth drivers
decline
7. TBD
8. ….
1
2
3
4
5
6
7
8

115
need for YYY
(US$ Million)
X%...
($ Millions)
($ Millions)
4,540
3,155
2,205
1,590
6.8%
7.6%
7.4%
2021
2016
2011
2006
395
315
250
200
4.6%
4.6%
4.7%
2021
2016
2011
2006
1,110
640
360
160
2006
11.6%
17.6%
12.2%
2021
2016
2011
the trend.
1

117
Agenda
 Market overview
 BU strategy
 Water Utilities
 Summary

118
BS&U / Water Utilities Strategy
- Customers
- Products/NPD
- Innovation
- New markets
- Channel
- Process
…
Enablers
foundation

119
Water Utilities list of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..

120
The need

121
 Sales ramp up
 Resourcing plan
 Risks
 Assumptions

122
Initiatives
 Grow XXX
 TBD
 TBD
 Exit YYY
 TBD
 TBD
 Maintain ZZZZ
 TBD
 TBD
 Develop NNN
 TBD
 TBD
Low High
Mkt
attractiveness
H
L
Business strength
XX
X
XX
X
XX
X
XX
X
each product line

123
Water Utilities P&L’s
articulation)
FSC
Net Sales - - - - #DIV/0! - - - - - #DIV/0!
OP Margin % 0.0% 0.0% 0.0% 0.0% NA 0.0% 0.0% 0.0% 0.0% 0.0% NA
’15F-’18E
CAGR
15P 15F 16E 17E 18E
11 12 13 14
’11-’14
CAGR

124
Agenda
 Market overview
 BU strategy
 Gas Utilities
 Summary

125
Gas Utilities overview
addresses.

126
Gas Utilities market sizing

127
Gas Utilities Growth drivers –
XXX market
Served
market
segment 1
($XXBn)
Sub segment 1
55% sales
Sub segment 2
<10% sales
(In mid term)
(In near term)
Sub segment 2
20% sales
May be segments,
makes sense
Drivers
• Diary intake
• Regulation
• Install base
Overall trend
Sub segment 3
10% sales
(In long term)

128
Gas Utilities trends in growth drivers
decline
7. TBD
8. ….
1
2
3
4
5
6
7
8

129
need for YYY
(US$ Million)
X%...
($ Millions)
($ Millions)
4,540
3,155
2,205
1,590
6.8%
7.6%
7.4%
2021
2016
2011
2006
395
315
250
200
4.6%
4.6%
4.7%
2021
2016
2011
2006
1,110
640
360
160
2006
11.6%
17.6%
12.2%
2021
2016
2011
the trend.
1

131
Agenda
 Market overview
 BU strategy
 Gas Utilities
 Summary

132
BS&U / Gas Utilities Strategy
- Customers
- Products/NPD
- Innovation
- New markets
- Channel
- Process
…
Enablers
foundation

133
Gas Utilities list of strategic initiatives
type
When
complete
Est. impact
(2016-18)
1 Served market
expansion
growing XXX segment
Market
share –
customer
growth
MM/YYYY $XXM
2 Develop product
XYZ
TBD Market
share - NPD
3 Develop serial
number
recognition
TBD Market
share – New
technology
4 Refresh API6 XXX
category
TBD Market
growth
5
6
..
..
..

134
The need

135
 Sales ramp up
 Resourcing plan
 Risks
 Assumptions

136
Initiatives
 Grow XXX
 TBD
 TBD
 Exit YYY
 TBD
 TBD
 Maintain ZZZZ
 TBD
 TBD
 Develop NNN
 TBD
 TBD
Low High
Mkt
attractiveness
H
L
Business strength
XX
X
XX
X
XX
X
XX
X
each product line

137
Gas Utitilities P&L’s
articulation)
FSC
Net Sales - - - - #DIV/0! - - - - - #DIV/0!
OP Margin % 0.0% 0.0% 0.0% 0.0% NA 0.0% 0.0% 0.0% 0.0% 0.0% NA
’15F-’18E
CAGR
15P 15F 16E 17E 18E
11 12 13 14
’11-’14
CAGR

BS_U 2015 Strat Plan 07.07.2015 MJ1.pptx

BS_U 2015 Strat Plan 07.07.2015 MJ1.pptx

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BS_U 2015 Strat Plan 07.07.2015 MJ1.pptx