EnPro Investor and Analyst Meeting

155 Pages·2012·11.08 MB·English

Engineered for Performance
EnPro Investor and Analyst Meeting
June 19, 2012
Forward-Looking Statements
Statements in this presentation that express a belief, expectation or intention, as well as those that
are not historical fact, are forward-looking statements under the Private Securities Litigation
Reform Act of 1995. They involve a number of risks and uncertainties that may cause actual events
and results to differ materially from such forward-looking statements. These risks and uncertainties
include, but are not limited to: general economic conditions in the markets served by our
businesses, some of which are cyclical and experience periodic downturns; prices and availability of
raw materials; and the amount of any payments required to satisfy contingent liabilities related to
discontinued opperations of our ppredecessors,, includingg liabilities for certain pproducts,, environmental
matters, guaranteed debt payments, employee benefit obligations and other matters. In addition,
adverse developments could arise in regard to voluntary petitions filed by certain of our subsidiaries
in U.S. Bankruptcy Court to enter into a process to resolve all current and future asbestos claims.
Our filings with the Securities and Exchange Commission, including the Form 10-K for the year
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and other risks and uncertainties in more detail. We do not undertake to update any forward-
looking statement made in this presentation to reflect any change in management's expectations or
any change in the assumptions or circumstances on which such statements are based.
We own a number of direct and indirect subsidiaries and, from time to time, we mayy refer
collectively to EnPro and one or more of our subsidiaries as “we” or to the businesses, assets, debts
or affairs of EnPro or a subsidiary as “ours.” These and similar references are for convenience only
and should not be construed to change the fact that EnPro and each subsidiary is an independent
entity with separate management, operations, obligations and affairs.
TThhiis presentatiion allso contaiins certaiin non-GGAAAAPP ffiinanciiall measures as ddeffiinedd bby thhe SSecuriitiies
Exchange Commission. A reconciliation of these measures to the most directly comparable GAAP
equivalents is included as an appendix to this presentation.
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Today’s Agenda
8:00 Welcome Don Washington
Director, Investor Relations
EEnnPPrroo OOvveerrvviieeww SStteevvee MMaaccaaddaamm
President and CEO
Financial Review and Alex Pease
Enterprise Excellence Overview Sr. VP and CFO
Garlock family of companies; Dale Herold
Technetics Group Division President
Stemco Jon Cox
DDiivviissiioonn PPrreessiiddeenntt
9:45 Break
10:00 GGB Steve Macadam
CPI; Fairbanks Morse Tony Gioffredi
DDiivviissiioonn PPrreessiiddeenntt
M&A Update Milt Childress
VP, Planning & Development
ACRP update Rick Magee
Senior Vice President
11:30 Summary, Q&A Steve Macadam
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SStteevvee MMaaccaaddaamm
President and Chief Executive Officer
ENPRO OVERVIEW
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Corporate Management
Steve Macadam
President and Chief Executive Officer
Education: University of Kentucky, BSME; Boston College, MS Finance; Harvard Business School, MBA
Prior Experience: DuPont, McKinsey & Company, Georgia-Pacific, Consolidated Container Company LLC, BlueLinx Holdings Inc
Joined EnPro: 2008 in current capacity
Alex Pease
Senior Vice President and Chief Financial Officer
Education: United States Naval Academy, BS; Tuck School of Business Dartmouth College, MBA
Prior Experience: US Navy, McKinsey & Company
Joined EnPro: 2011 in current capacity
Rick Magee
Senior Vice President
Education: University of North Carolina, BA, JD
Prior Experience: United Dominion Industries, Robinson Bradshaw & Hinson PA
Joined EnPro: 2002 as General Counsel
Milt Childress
Vice President, Strategic Planning and Business Development
Education: University of Tennessee, BS; University of Virginia, MBA
Prior Experience: Ernst & Young, Unitedd Dominion Inddustries, McGuire Woodds Capitall Group
Joined EnPro: 2005 in current capacity
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Operating Management
Dale Herold
Division President, Garlock
Education: Grove City College, BSME
Prior Experience: General Electric, Consolidated Container Company LLC, BlueLinx Holdings Inc
Joined EnPro: 2008 as Vice President, Continuous Improvement
Assumed current role: 2009
Jon Cox
DDiiviisiion PPresiiddentt, SSttemco
Education: GMI Engineering & Management Institute, BSME
Prior Experience: Federal-Mogul
Joined Coltec (EnPro predecessor): 1995 as Vice President, Engineering, Stemco
Other EnPro positions: Vice President, Engineering, GST; Vice President and General Manager, GST Klozure
Assumed current role: 2007
Ken Walker
Division President, GGB Bearing Technologies
Education: Virginia Tech, BSCE; University of Delaware, MBA
Prior Experience: W.L. Gore & Associates Inc, G5 Technologies Inc
Joined EnPro: 2001 as Vice President , Sales and Marketing, Plastomer Technologies
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Assumed current role: 2010
Tony Gioffredi
Division President, CPI; President, Engine Products and Services Segment
Education: Iowa State University, BSME
Prior Experience: Westinghhouse, Dresser-Randd Company
Joined EnPro: 2001 as Vice President, Operations, Fairbanks Morse Engine
Assumed current role: 2007
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EnPro: A Journey to Growing Value
2002 2002-2007 2008-2010 2011 and beyond
Build on
A solid base Prepare for growth Unlocking true value
fundamentals
• Strong brands • Operational Excellence • Comprehensive • Enterprise Excellence
Enterprise Excellence supports organic
• LLeeaaddiinngg mmaarrkkeett sshhaarreess • FFaacciilliittiieess iinnvveessttmmeennttss
growth
• Aggressive response to
• Critical products • Expanded international
weak economy • Acquisitions expand
presence
product lines, market
• Broad customer base
• Began to optimize
access
• Initiated strategic “bolt
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•• “CCaasshh ffllooww” aassbbeessttooss
on” acquisition program
and reinvested • Focus on effective
strategy at GST
proceeds integration of
• GST strategy controlled
acquisitions
cash outflows
• Tort system abuses lead
GST to seek permanent • GST remains profitable,
resolution of claims prepares strong case
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Driving Shareholder Value
Proprietary products for critical applications
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Culture of excellence
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Setting a Path for Growth
($ in millions)
Pro Forma Sales Pro Forma
EEBBIITTDDAA
65%
119%
$$11,008811 $$115533
$776
$105
$$665544
$70
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Results are pro forma to reflect effect of GST deconsolidation as if it occurred on January 1, 2009;
any and all contributions by GST have been removed.
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Corporate Model Maximizes Value,
Execution of Strategy
Continuous Improvement
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Disciplined capital deployment
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Talent and leadership development
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