Baird Investor Conference

November 11, 2014

Scott Buckhout, CEO & President

Forward Looking Statements

Safe Harbor
This presentation contains forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Reliance
should not be placed on forward-looking statements because they involve unknown risks, uncertainties and
other factors, which are, in some cases, beyond the control of CIRCOR. Any statements in this presentation
that are not statements of historical fact are forward-looking statements, including, but not limited to, those
relating to CIRCORs future performance, including the financial targets presented herein. Actual events,
performance or results could differ materially from the targets, anticipated events, performance or results
expressed or implied by such forward-looking statements. BEFORE MAKING ANY INVESTMENT
DECISIONS REGARDING OUR COMPANY, WE STRONGLY ADVISE YOU TO READ THE SECTION
ENTITLED "RISK FACTORS" IN OUR MOST RECENT ANNUAL REPORT ON FORM 10-K AND
SUBSEQUENT REPORTS ON FORMS 10-Q, WHICH CAN BE ACCESSED UNDER THE "INVESTORS"
LINK OF OUR WEBSITE AT WWW.CIRCOR.COM. We undertake no obligation to publicly update or revise
any forward-looking statement, whether as a result of new information, future events or otherwise.

Non GAAP Measures

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Within this presentation, both with respect to historical information and future targets, the company uses
non-GAAP financial measures, including adjusted operating margin, adjusted earnings per diluted share,
adjusted operating income, and free cash flow. These measures are intended to serve as a complement to
results provided in accordance with accounting principles generally accepted in the United States. CIRCOR
believes that such information provides an additional measurement and consistent historical comparison of
the Companys performance. A reconciliation of the historical non-GAAP financial measures to the most
directly comparable GAAP measures is available as an appendix to the presentation slides under the
Investors link and Webcasts & Presentations Sublink on the companys website at www.circor.com.

CIRCOR is at an Inflection Point

1999

2013

Holding Company

Transition

Operating Company

Acquisition focus
Good products, brands
and markets
Business unit autonomy
Limited integration
Many cultures

Build the team

Establish core operating
system: processes,
metrics, owners
Simplify the Company
Redefine CIRCOR
Business System
Transition to one culture
Address the portfolio
Position for stronger
growth

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Global market-facing
organization
Consistent priorities: growth,
margin, cash
Pursuit of operational
excellence through CIRCOR
Business System
Acquisitions only with strong
shareholder returns
One CIRCOR culture:
customers, results,
accountability
An engineering and
technology focused company

CIRCOR Business Overview

Design, develop, manufacture and sell flow control products and solutions for Energy
(Oil & Gas and Power) and Aerospace markets
2013 Sales:

$858 Million

2013 AOI Margin:

9.9%

Employees:

~3,000

Enterprise Value:

Energy

Aerospace & Defense

~$1.1 Billion

Sales by Industry

Sales by Geography
Latin America
Asia

Aerospace
& Defense

8% 3%

23%

77%

EMEA

37%

52%

North
America

Energy
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Addressable Market
ENERGY

AEROSPACE & DEFENSE

Valves
Downstream
3
Midstream
4

Fluid Control & Actuation

Fluid Control
1.5
Power
5

$30 billion

Upstream
16

$8 billion

Actuation
6.5

BGA
30

Flow Control:
~$150 billion
BGA
30

Military
65

$1.1 trillion

$310 billion

Commercial
215

CAPEX 2013
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CAPEX 2013

Energy Sources: Upstream: Morgan Stanley, Midstream: AMR, Power & Downstream: EIF Valve Report
Note: Flow Control includes pumps, valves, monitoring, filtration, systems used in controlling flow of liquids and gas
A&D Source: Forecast International
Note: Military = Aircraft, Missiles =; Commercial, Transport, Regional, Cargo, BGA = Business Jets, General Aviation, Civil Helicopters
A&D Source: Counterpoint intelligence Aerospace Valves and Actuation reports

Growing End Markets

Market Segment

Upstream

Trends

Demand Drivers for CIRCOR

Increase in Global CAPEX spending

Extraction / Production shift to harsh environments
Exceptional strength in Offshore, Unconventional, LNG

Unconventional Oil & Gas drives CAPEX investment in

North America
Refining capacity growth in Middle East and Asia Pacific
Chinas oil refining capacity up 40% by 2020

Emerging markets fuel power investment growth

Asia representing 70% of incremental power capacity
China/India/Asia Pacific 6-8% CAGR

Commercial aircraft build rates and backlog at historic highs

Global airline passenger traffic growth over 5%
New business jet programs in development

Overall spending reduction at US DOD

Some key programs to receive increased funding
F35 Joint Strike Fighter
Various missile programs

Strong

Moderate

Mid / Downstream

Strong

Power Generation

Strong

Aerospace

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Weak

Defense

Good Products and Strong Brands

Energy

Aerospace & Defense

Custom Engineered Control Valves

Aerospace Fluid Control

Ball Valves

Pneumatic Power Modules

Instrumentation Valves

Defense Aircraft Ground Support

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Go Forward Focus Areas

Growth Drivers

New Organization

Market facing
commercial team
Product technology
aligned operations
and engineering

New Products

Upstream
LNG
Power
Aero & Defense

Global Expansion
Distribution rationalization
Key account management
Feet on the street
Aftermarket

On-time delivery
Lead time reduction
Customer interface
Simplified pricing

Go To Market
Initiatives

Easy To Do
Business

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Sales Force Pay for

Performance

Margin Expansion Drivers

Simplification

Facilities
Business units
Systems
Suppliers
Product Portfolio

Operational
Excellence

Material Savings
Factory productivity
Shared services

Price

Simple structure
Pocket price focus
Project discipline

Volume Leverage

Organic
Inorganic

Link variable pay to

individual performance

Organic Growth: Geographic Expansion

Energy Group Commercial Expansion

Unconventional
Offshore

Offshore

Calgary
Unconventional

Offshore
Unconventional
LNG
Houston

Unconventional
Offshore
LNG

Milan
Beijing

Abu
Dhabi
Conventional

Power
Offshore

Power
Unconventional

Coimbatore
Power

Offshore
Global EPCs

Current
locations
Rio
Recently
Established

Kuala
Lumpur

Offshore
Offshore
LNG

Under
Evaluation

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Organic Growth: New Product Development

Energy Product Portfolio

Control Valves

Severe Service
Instrumentation

Engineered
Ball Valves

Medium

Market Growth

High

Subsea Valves

Turbine By-Pass
Control Valves

LNG Valves

Product Development Focus

Extreme Temperature

Higher Pressure

Abrasive Mediums

High Reliability

Ball Valves

Low

Gate, Globe, Check

Valves

Low
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Medium

High

Technology
10

Margin Expansion: Simplification

CIRCOR Complexity 2013
Sq.
Feet

Revenue
($M)

Manufacturing

200000

200

180000

180

160000

160

2018 Target
~15

140000
120000

2018 Target
~12

140
120

100000

100

80000

80

60000

24
Facilities

40000

22
Business
Units

60
40

20000

20

Business Units

Facilities
Age of ERP
(years)

ERP Systems by Age

Suppliers

18

14
12
10

Suppliers

2,000

16

1,500

2018 Target
~15

1,000

24
ERP Systems

6
4

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P&Ls

2018 Target
~1200 Suppliers
~5000
Suppliers

500

2
0

ERP Systems

Business Units

11

Excellence in Global Sourcing

KEY METRICS
CONTRACT
EXCELLENCE

Negotiate put parts

on contract

2014

Target
(3-5 Yrs.)

BEST VALUE
SOURCING

Net Productivity*

>1%

~2%/year

# of suppliers

5,011

~1,200

% on contract

8%

~80%

Supplier OTD

48%

95%

Supplier DPPM

>10,000

1,000

Source globally
(Direct Material)

VALUE
ENGINEERING

LEAN
PROCUREMENT

Cost take-out redesigns

Streamlined purchase
order placement

* Net of inflation

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Capital Deployment
Prioritization of Capital Deployment

Internal Investments

Long Term Target

Leverage Ratio
2 to 2.5x EBITDA

Growth
Margin expansion
Working capital

Acquisitions

In markets we understand
Technology bias
High growth market presence a plus
Bolt-on

3
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Share Buybacks

Will consider opportunistically

Ongoing dialogue with Board
Focus on ROIC

ROIC is the determining factor for prioritization

13

Financial Targets
2018 Financial Targets
TARGET
Organic Sales Growth

4% to 6% CAGR

Adjusted Operating Margin

~15% in 2018

EPS Growth

~15% CAGR

Free Cash Flow Conversion

>100%

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Sales / AOI Trend

($ millions)

Sales

EPS

Sales CAGR 4%
EPS CAGR 13%

3.70 *
3.21
2.59

1.97

2.13

846

858

840 *

822

686

2010

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2011

* Midpoint of Q4-14 Guidance

Amounts adjusted for any special/impairment items

2012

2013

2014T

Q4-14 Guidance:
Sales
$210 to $225
Adjusted EPS $1.02 to $1.12
15