Slide 1: Fourth Quarter 2023 Earnings
Fourth Quarter 2023 Earnings February 7, 2024 1
Slide 2: Agenda
Agenda • IDEX Overview • Q4 and Full Year 2023 Financial Performance • Market Outlook • 2024 Guidance • Q&A IDEX Proprietary & Confidential 2
Slide 3: Replay Information
Replay Information • Dial toll–free: 877.660.6853 • International: 201.612.7415 • Conference ID: #13742102 • Log on to: www.idexcorp.com IDEX Proprietary & Confidential 3
Slide 4: Cautionary Statement
Cautionary Statement Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other
Slide 5: Business Update
Business Update IDEX Proprietary & Confidential 5
Slide 6: IDEX Overview
IDEX Overview Strong Execution in 2023 Amid Challenging Backdrop • Strong execution, price capture and record cash generation • Closed year with continued stability in order rates • Acquired Iridian and STC Material Solutions • Strategic portfolio pruning with divestitures of Micropump and Novotema
Slide 7: Financials
Financials IDEX Proprietary & Confidential 7
Slide 8: IDEX Q4 2023 Financial Performance
IDEX Q4 2023 Financial Performance (Dollars in millions, excl. EPS) Sales Adjusted Earnings per Share* -6% Organic* -1% Organic* -9% Decrease +1% Increase $3,182 $3,274 $8.12 $8.22 $811 $2.01 $789 $1.83 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'23 Adjusted EBITDA Margin* Free Cash Flow* -120 bps
Slide 9: Q4 2023 Adjusted EBITDA Walk
Q4 2023 Adjusted EBITDA Walk (Dollars in millions) $ 219 5 $ 204 16 3 (3) (36) 4Q'22 ACT Organic Price / Mix Variable Acq/Div/ 4Q'23 ACT ADJ EBITDA Flow Thru Productivity / Inflation Compensation FX ADJ EBITDA Flow through Organic flow Total flow @ PY GM%* through-a) through 43.6% (39%) (70%) a)- Ex
Slide 10: 2024 IDEX Segment Outlook
2024 IDEX Segment Outlook FLUID & METERING HEALTH & SCIENCE FIRE & SAFETY / TECHNOLOGY TECHNOLOGY DIVERSIFIED Water Solutions & Services Space / Broadband Fire Systems Automation POSITIVE CATALYSTS Energy Transition Energy Transition Aero & Defense Aero & Defense Diversified Industrials Industrial N
Slide 11: 2024 Full Year Guidance Bridge
2024 Full Year Guidance Bridge Sales ($M) EPS FY 2023 Reported $3,274 $7.85 Acquisition-related intangible asset amortization 0.97 Credit loss on note receivable from collaborative partner 0.08 Loss (gain) on sale of businesses (0.82) Restructuring expenses and asset impairments 0.12 Fair value inve
Slide 12: 2024 Guidance Summary
2024 Guidance Summary First Quarter Full Year Current Current Guidance Guidance Revenue% vs. Prior Year Organic* (7%) - (6%) 0% - 2% growth EBITDA% Adjusted* ~25% ~28% Earnings per Share Reported $1.45 - $1.50 $7.15- $7.45 Earnings per Share Adjusted* $1.70 - $1.75 $8.15 - $8.45 Other Modeling Items
Slide 13: Closing Remarks
Closing Remarks IDEX Proprietary & Confidential 13
Slide 14: Appendix
Appendix IDEX Proprietary & Confidential 14
Slide 15: Fluid & Metering Technologies
Fluid & Metering Technologies (Dollars in millions) Orders Sales Adjusted EBITDA Margin* -5% Organic* -2% Organic* 3% Organic* 5% Organic* +80 bps* +130 bps* $1,247 32.1% 33.4% $299 $1,167 30.0% 30.8% $297 $1,216 $1,218 $288 $285 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'2
Slide 16: Health & Science Technologies
Health & Science Technologies (Dollars in millions) Orders Sales Adjusted EBITDA Margin* -17% Organic* -23% Organic* -19% Organic* -10% Organic* -450 bps* -390 bps* $320 $1,365 ** $353 $1,339 ** $1,316 31.2% $295 $1,163 $313 30.3% 25.8% 27.3% Q4'22 Q4'23 TY'22 TY'23 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'
Slide 17: Fire & Safety / Diversified Products
Fire & Safety / Diversified Products (Dollars in millions) Orders Sales Adjusted EBITDA Margin* -7% Organic* -2% Organic* 3% Organic* 6% Organic* +160 bps* +190 bps* $701 $179 $719 $188 $685 $176 $171 $679 28.9% 29.0% 27.3% 27.1% Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'23 Q4'22 Q4'23 FY'22 FY'2
Slide 18: Full Year 2023 Adjusted EBITDA Walk
Full Year 2023 Adjusted EBITDA Walk (Dollars in millions) 36 $ 900 $ 884 60 16 (15) (5) (76) FY'22 ACT Organic Price / Mix Resource Variable Acq/Div/ FY'23 ACT ADJ EBITDA Flow Thru Productivity / Investment / Compensation FX ADJ EBITDA Inflation Discretionary Flow through Organic flow Total flow @ P
Slide 19: Non-GAAP Reconciliations
Non-GAAP Reconciliations IDEX Proprietary & Confidential 19
Slide 20: Non-GAAP Measures of Financial Performance
Non-GAAP Measures of Financial Performance The Company prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The Company supplements certain GAAP financial performance metrics with non-GAAP financial performance m
Slide 21: Table 1: Reconciliations of the Change in Net Sales to Organic Net Sales
Table 1: Reconciliations of the Change in Net Sales to Organic Net Sales For the Quarter Ended December 31, 2023 For the Year Ended December 31, 2023 FMT HST FSDP IDEX FMT HST FSDP IDEX Change in net sales 4% (11%) 5% (3%) 7% (2%) 6% 3% Less: Net impact from acquisitions/divestitures —% 7% —% 3% 2%
Slide 22: Table 3: Reconciliations of Reported-to-Adjusted Net Income and Diluted EPS
Table 3: Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, except per share amounts) (continued) For the Quarter Ended For the Year Ended December 31, December 31, 2023 2022 2023 2022 Reported diluted EPS attributable to IDEX $
Slide 23: Table 4: Reconciliations of Net Income to Adjusted EBITDA
Table 4: Reconciliations of Net Income to Adjusted EBITDA and Net Sales to Adjusted Net Sales (dollars in millions) (continued) For the Year Ended December 31, 2023 2022 FMT HST FSDP Corporate IDEX FMT HST FSDP Corporate IDEX Reported net income $ — $ — $ — $ — $595.6 $ — $ — $ — $ — $ 586.7 Provisi
Slide 24: Table 6: Reconciliation of Estimated 2024 Change in Net Sales to Organic Net Sales
Table 6: Reconciliation of Estimated 2024 Change in Net Sales to Change in Organic Net Sales Guidance First Quarter 2024 Full Year 2024 Low End High End Low End High End Change in net sales (6%) (5%) 1% 3% Less: Net impact from acquisitions/divestitures —% —% 1% 1% Impact from foreign currency 1% 1%