Ralliant (RAL) Investor Presentation summary

Strategic rationale and transaction overview

• Plans announced to separate into two independent public companies, each with focused business models and leadership succession plans.

• Spin-off structured as a tax-free distribution of the Precision Technologies (PT) business to shareholders, targeted for Q4 2025 completion, pending regulatory and board approvals.

• Both entities will have strong investment-grade balance sheets and distinct capital allocation strategies.

• Investor days planned prior to spin completion to provide further details.

Leadership and management

• Olumide Soroye to lead the remaining company, bringing expertise in product leadership, digital workflows, and strategic acquisitions.

• Tami Newcombe to head the new PT company, with a background in sales, engineering, and technology market transitions.

• Leadership transitions align with long-term succession planning.

Business profiles and financial highlights

• Remaining company (IOS and AHS) projects ~$4B FY 2024 revenue, ~65% gross margin, ~31% operating margin, and ~50% recurring revenue.

• PT business (NewCo) expects ~$2.3B FY 2024 revenue, ~53% gross margin, ~25.5% operating margin, and ~25% recurring revenue.

• Both companies positioned for multi-year growth, with differentiated investment profiles and strong free cash flow generation.