Enovis Corporation · NYSE:ENOV
Enovis — Colfax — Deutsche Bank Small and Mid Cap Conference (February 2009)
29 slides from Enovis's conference presentation, Feb 11, 2009
Slide 1: Deutsche Bank Small and Mid Cap Conference
Deutsche Bank Small and Mid Cap Conference February 11, 2009
Slide 2: Forward-Looking Statements
Colfax Forward-Looking Statements The following information contains forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning Col
Slide 3: Company Overview
Colfax Company Overview = 2008 revenue of $605) million | 2&3 Screw Centrifugal Progressive | Fluid Handling | Precision Gear | Specialty = ~2,000 associates Pumps Pumps C Pumps ‘Systems Pumps Valves worldwide a = 16 principal if “rw production facilities in y 7 countries \ = Over 300 direct = sales
Slide 4: Background
Colfax Background = Founded in 1995 = John Young, President & CEO, was an original founder = Equity capital provided by Mitch and Steve Rales, founders of Danaher (NYSE: DHR) = Targeted global industrial companies with strong brands = 12 acquisitions, 5 divestitures = Exclusively focused on fluid ha
Slide 5: Colfax Business System Drives Business Improvement
fax Colfax Business System Drives Business Improvement = Derived from the proven Danaher Business System = Utilize Voice of the Customer C\VOC") to target = d breakthrough growth initiatives, new products and applications Voice ofthe Customer. = Conduct root-cause analysis, develop process improveme
Slide 6: Investment Highlights
Colfax Investment Highlights = Global leader in specialty fluid handling products = Proven application expertise in solving critical customer needs = Serving fast growing global infrastructure driven end markets Leading brand names generating aftermarket sales and services = Experienced management t
Slide 7: Broad Product Portfolio Focused on Customer Applications
Colfax Broad Product Portfolio Focused on Customer Applications 2and\3 Screw Pumps Centrifugal Pumps Progressive Cavity Pumps
Slide 8: Serving Critical Applications in Our Key End Markets
fax Serving Ci al Applications in Our Key End Markets Commercial Power, Geel si nica dsl Key Markets. Applications Brands. Marine Fuel ail transfer, ail transport, water and wastewater handling Allweller, Houttuin, Imo AB Oil & Gas Crude oil gathering; pipeline services; unloading and loading, rotat
Slide 9: Strong Application Expertise
fax Strong Application Expertise Situation Analysis Husky Energy moves heavy crude oil along pipelines from the oil fields in Northern Canada through extremely harsh environment to a central blending facility Colfax Solution = For the past 40 years Husky has turned to Colfax and the Imo 8L 3 screw p
Slide 10: Develop New Products, Applications and Technologies
Colfax Develop New Products, Applications and Technologies Driven by Voice of the Customer Step 1-VOoC Step 1a =NOC Summary} All-Heat SMART eae VE EE Z “Easier installation | EMTEC SMART | SMART All-Fuel SMART Benefits Benefits 1. 50% energy usage 1. Efficient seal reduction leakage monitoring 2. El
Slide 11: Large and Diverse Customer Base and End Markets
ffa Col fax Large and Diverse Customer Base and End Markets 2007 Revenues By End Markets 2007 Revenues By Geography Global Navy Middle East General (1) 2 Affica Industrial Central & South America Canada Commercial Marine SIEMENS CASAL GENERAL DYNAMICS S AHYUNDAI Maavy INDUSTRIES C0. LTD, Blue chip c
Slide 12: Extensive Global Sales, Distribution and Manufacturing Footprint
Colfax Extensive Global Sales, Distribution and Manufacturing Footprint imo AB Stockhoty Houttuin “& , Allweiter Bottrop Portland Value y, a y 7 Altweiler ie ‘Allweiler Radozel! irmou Automatiog| fe tire no Rehnte hi xen imoMonvex # Sanford otonrobe & anterd Mouston Asia Pacific EMEA ~ 1,000 Associa
Slide 13: Target Fast Growing Regions
Colfax Target Fast Growing Regions = Capitalize on growth opportunities by offering regionally developed products and solutions — Standard packages of Imo and Allweiler products produced at our Greenfield, Wuxi China facility for Commercial Marine = Continue to invest in sales and marketing capabili
Slide 14: Leading Brands Generating Aftermarket Sales and Services
Colfax Leading Brands Generating Aftermarket Sales and Services ‘ * Product history dating back L. <> ALLWEILER to 1860 provides large Pump Pumps installed base Est. 1937 Est. 1897 Est. 1860 Acq. 1997 Acq. 1997 Acq. 1998 = High quality, reliable products used in critical applications lip mith ) , =
Slide 15: Continue to Pursue Strategic Acquisitions that Complement Our Platform
Colfax Continue to Pursue Strategic Acquisitions that Complement Our Platform Acquisition Initiatives Acquisition Criteria = Continue to proactively engage with highly strategic targets = Product, market and geographically focused searches = Evaluate opportunistic bolt-on companies = Pursue adjacent
Slide 16: Financial Performance - Revenue
fax Financial Performance - Revenue Revenue $700.0 6 ions) $600.0 $500.0 A $400.0 a $300.0 $200.0 $309.7 $100.0 $0.0 a 2005 2008 2007 2008 Estimate Existing Businesses. ea 18% 135% 1% Acquisitions 1.4% 8.0% 1% FX Translation 08% 71% 5% Total Growth Retr Apgeeacnr Won. CARP cree 16
Slide 17: Financial Performance - Adjusted EBITDA
fax Financial Performance — Adjusted EBITDA Adjusted EBITDA 6 ions) $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 % Margin 13.2% 16.5% 16.5% 74% wey WE ie = ale ume Sey Retr Apgeeacnr Won. CARP cree
Slide 18: Financial Performance - Orders
fax Financial Performance — Orders Orders (in millions) $700.0 $600.0 $500.0 $400.0 $300.0 $200.0 $100.0 $0.0 2005 2006 2007 2008 Estimate Existing Businesses - I 17.8% ™% Acquisitions = 1.2% 6.1% 2% FX Translation ee 0.5% 7.8% 6% Total Growth, a 19.4% 31.6% 18% v7 Retr Apgeeacnr Won. CARP cree
Slide 19: Financial Performance - Backlog
Colfax Financial Performance — Backlog $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 Backlog EI ~ (6 in millions) 4 $0.0 + 2007 2008 Estimate Hes
Slide 20: Strong Financial Condition
Colfax Strong Financial Condition = Debt to adjusted EBITDA < 1 times as of the end of the third quarter (covenant — 3.25 to 1.00) = Fixed charge coverage > 6 times as of the end of the third quarter (covenant — 1.5 to 1.0) = Approximately $133 million available on revolver at year end (expires in 2
Slide 21: 2009 Outlook Summary
Colfax 2009 Outlook Summary 2009 Organic growth () 3% 2009 Total $570 million to $585 million EPS Range 2009 Net income per share $0.80 to $0.87 2009 Adjusted net income per share ?) $1.10 to $1.17 (1) Exctudes impact of foreign exchange rate fluctuations and acquisitions (2) Excludes imoact of asbe
Slide 22: 2009 Outlook Assumptions
Colfax 2009 Outlook Assumptions Assumptions Asbestos coverage litigation $12 million Asbestos liability and defense costs $7 million Euro $1.41 Tax rate 32% Interest expense $8 million Incremental public company costs $2.5 million Outstanding shares 43.3 million 2
Slide 23: Well Positioned for the Future
fax Well Positioned for the Future Global Leader in Specialty Fluid Handling Products Leading Brand Names Generating Aftermarket Sales and Services Proven Application Expertise in Solving Critical Customer Needs Experienced Management Team in Place to Grow Organically and Through Strategic Acquisiti
Slide 24: Appendix
celfax Appendix 23
Slide 25: Asbestos Update
Colfax Asbestos Update = Claims arise from purchased components previously included in our products. = Significant solvent insurance coverage = Bad faith lawsuit against insurance carriers increases costs in near term « Estimated annual liability and related defense costs of approximately $7 million
Slide 26: Colfax Disclaimer
Coifax Disclaimer Adjusted net income per share, adjusted EBITDA, organic sales growth and organic order growth are non-GAAP financial measures. Adjusted net income per share, and adjusted EBITDA exclude asbestos liability and defense cost (income) and asbestos coverage litigation expense, certain l
Slide 27: Non-GAAP Reconciliation
fax Non-GAAP Reconciliation 2007 2006 2008 2004 EBITDA Net (loss) income S 64882 $ 94 § 12,247 $57,306 Interest expense 19,246 14,186 9,026 6.918 (Benefit) provision for income taxes 39,147 3.866 6,907 (6.010) Depreciation and amortization 15,239 11,481 11,430 9,872 EBITDA $138,514 _§ 20.627 _$ 39.6
Slide 28: Sales & Order Growth
fax Sales & Order Growth Prior Year Sales Components of Growth: Organic Growth from Existing Businesses, Acquisitions Foreign Cusrency Translation Total Growth ‘Current Year Sales Prior Year Orders Components of Growth: Organic Growth from Existing Businesses, Acquisitions Foreign Cusrency Translati
Slide 29: Sales & Order Growth
fax Sales & Order Growth (amounts in millions) (preliminary unaudited) Sales Orders Ss % $ % Twelve Months Ended December 31,2007 $506 Ss 581 Components of Growth: Organic Growth from Existing Businesses 70 14% 41 T% Acquisitions 6 1% 12 2% Foreign Currency Translation 23 5% 35 6% Total Growth, 99 1
Colfax — Deutsche Bank Small and Mid Cap Conference (February 2009) on 6ix