Enovis Corporation · NYSE:ENOV
Enovis — Colfax — Investor Presentation (February 2009)
34 slides from Enovis's investor presentation, Feb 23, 2009
Slide 1: Investor Presentation February 2009
Exhibit 99.1 Investor Presentation February 2009
Slide 2: Forward-Looking Statements
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 Colfax's p
Slide 3: Company Overview
Company Overview 2008 revenue of Products $605 million 2 & 3 Screw Centrifugal Progressive Fluid Handling Precision Gear Specialty ~2,200 associates Pumps Pumps Cavity Pumps Systems Pumps Valves worldwide 16 principal production facilities in 7 countries Over 300 direct sales and marketing associate
Slide 4: Background
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 handling industry Pro
Slide 5: Colfax Business System Drives Business Improvement
Colfax Business System Drives Business Improvement Derived from the proven Danaher Business System Utilize Voice of the Customer (“VOC”) to target POLICY DEPLOYMENT breakthrough growth Six Sigma Quality initiatives, new products and applications On Time Delivery - Products and Services Profitable Vo
Slide 6: Investment Highlights
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 team in place to
Slide 7: Broad Product Portfolio Focused on Customer Applications
Broad Product Portfolio Focused on Customer Applications 2 and 3 Screw Pumps Centrifugal Pumps Progressive Cavity Pumps Fluid Handling Systems Precision Gear Pumps Specialty Valves Well recognized brands across served markets 6
Slide 8: Serving Critical Applications in Our Key End Markets
Serving Critical Applications in Our Key End Markets Commercial Power General Oil & Gas Global Navy Marine Generation Industrial Key Markets Applications Brands Commercial Fuel oil transfer; oil transport; water and Allweiler, Houttuin, Imo AB Marine wastewater handling Oil & Gas Crude oil gathering
Slide 9: Strong Application Expertise
Strong Application Expertise Situation Analysis Situation Analysis Husky Energy moves heavy crude oil along pipelines Major Venezuelan oil company moves 180,000 BPD of from the oil fields in Northern Canada through sand laden crude oil through pipelines using a extremely harsh environment to a centr
Slide 10: Develop New Products, Applications and Technologies
Develop New Products, Applications and Technologies Driven by Voice of the Customer Step 1 - VOC Step 1a – VOC Summary All-Heat SMART Benefits 1. Senses wear & alerts end-user 2. Easy to upgrade EMTEC SMART All-Fuel SMART Step 2 – Prioritization Step 3 – Specification Benefits Benefits 1. 1. Efficie
Slide 11: Large and Diverse Customer Base and End Markets
Large and Diverse Customer Base and End Markets 2008 Revenues By End Markets 2008 Revenues By Geography (2) 6% 15% 14% (1) 22% 5% 41% 14% 4% 3% 51% 25% Blue Chip Customers Blue chip customer base with no single customer representing more than 3% of sales in 2008 (1) ____________________ (2) Includes
Slide 12: Serving Fast Growing Infrastructure Driven End Markets
Serving Fast Growing Infrastructure Driven End Markets Estimated Market Expectations Market Size Growth in international trade and demand for crude oil and other commodities as well as the age of the global merchant fleet should continue to create demand for new ship ~$2.0bn construction. Increasing
Slide 13: Extensive Global Sales, Distribution and Manufacturing Footprint
Extensive Global Sales, Distribution and Manufacturing Footprint Imo AB Stockholm Houttuin Portland Valve Allweiler Bottrop Warren Allweiler Allweiler Radolfzell Fairmount Automation Tours Allweiler Imo Kentucky Corporate HQ Richmond Sanford Gottmandingen Imo Monroe LSC Colfax Wuxi Houston Tushaco D
Slide 14: Target Fast Growing Regions
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 capabilities to more
Slide 15: Leading Brands Generating Aftermarket Sales and Services
Leading Brands Generating Aftermarket Sales and Services Product history dating back to 1860 provides large installed base Est. 1931 Est. 1897 Est. 1860 Acq. 1997 Acq. 1997 Acq. 1998 High quality, reliable products used in critical applications Tendency for customers to replace “like for like” produ
Slide 16: Continue to Pursue Strategic Acquisitions that Complement Our Platform
Continue to Pursue Strategic Acquisitions that Complement Our Platform Acquisition Initiatives Acquisition Criteria Continue to proactively engage with Acquire companies in the fluid handling highly strategic targets industry Product, market and geographically Strong brand name recognition focused s
Slide 17: Asbestos Update
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 $5 - $7 million before potential insuran
Slide 18: Financial Overview
Colfax Financial Overview 17
Slide 19: Financial Performance - Revenue
Financial Performance - Revenue $700.0 Revenue (1) ($ in millions) $600.0 $500.0 $400.0 $604.9 $506.3 $300.0 $393.6 $200.0 345.5 $100.0 $0.0 2005 2006 2007 2008 Existing Businesses -- 11.8% 13.5% 13.9% Acquisitions -- 1.4% 8.0% 1.1% FX Translation -- 0.8% 7.1% 4.5% Total Growth -- 13.9% 28.6% 19.5%
Slide 20: Financial Performance – Adjusted EBITDA
Financial Performance – Adjusted EBITDA Adjusted EBITDA (1) ($ in millions) $120.0 $100.0 $80.0 $105.6 $60.0 $88.2 $40.0 $64.1 $54.8 $20.0 $0.0 2005 2006 2007 2008 % Margin 15.9% 16.3% 17.4% 17.5% (1) Refer to Appendix for Non-GAAP reconciliation. 19
Slide 21: Financial Performance – Orders
Financial Performance – Orders Orders (1) ($ in millions) $700.0 $600.0 $500.0 $669.2 $400.0 $581.5 $300.0 $442.3 $200.0 $370.4 $100.0 $0.0 2005 2006 2007 2008 Existing Businesses --- 17.7% 17.6% 7.0% Acquisitions --- 1.2% 6.1% 2.0% FX Translation --- 0.5% 7.8% 6.1% Total Growth --- 19.4% 31.5% 15.1
Slide 22: Financial Performance – Backlog
Financial Performance – Backlog Backlog ($ in millions) $400.0 $350.0 $300.0 $250.0 $200.0 $337.3 $150.0 $292.8 $100.0 $179.3 $118.3 $50.0 $0.0 2005 2006 2007 2008 21
Slide 23: Income Statement Summary
Income Statement Summary Refer to Appendix for Non-GAAP reconciliation. __________________ Note: Dollars in millions. 22
Slide 24: Statement of Cash Flows Summary
Statement of Cash Flows Summary (Preliminary & Unaudited) ____________________ Note: Dollars in millions. 23
Slide 25: Strong Financial Condition
Strong Financial Condition(1) Debt to adjusted EBITDA < 1 times Approximately $130 million available on revolver (expires in 2013) Approximately $29 million in cash Strong balance sheet and credit availability provide flexibility (1) As of FYE 2008 24
Slide 26: 2009 Outlook Summary
2009 Outlook Summary Revenue Range (1) 1% to 3% 2009 Organic growth 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 (2) $1.10 to $1.17 Assumptions Asbestos coverage litigation $12 million Asbestos liability and defense cos
Slide 27: Well Positioned for the Future
Well Positioned for the Future Proven Application Serving Fast Global Leader in Specialty Expertise in Solving Growing Infrastructure Fluid Handling Products Critical Customer Needs Driven End Markets Experienced Management Leading Brand Names Team in Place to Grow CBS-Driven Culture Focused Generat
Slide 28: Appendix
Colfax Appendix 27
Slide 29: Disclaimer
Disclaimer Adjusted net income, adjusted net income per share, adjusted operating income, EBITDA, adjusted EBITDA, adjusted selling, general and administrative expenses, organic sales growth and organic order growth are non-GAAP financial measures. Adjusted net income, adjusted net income per share,
Slide 30: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2008 2007 2006 2005 EBITDA Net income (loss) $ (571) $ 64,882 $ 94 $ 12,247 Interest expense 11,822 19,246 14,186 9,026 Provision for income taxes 5,438 39,147 3,866 6,907 Depreciation and amortization 14,788 15,239 11,481 11,430 EBITDA $ 31,477 $ 138,514 $ 29,627 $ 39,610 Ad
Slide 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Year Ended December 31, December 31, 2008 2007 Adjusted Net Income and Adjusted Earnings per Share Net income (loss) $ (571) $ 64,882 IPO-related costs 57,017 - Legacy legal adjustment 4,131 - Due diligence costs 582 - Asbestos liability and defense (income) costs (4,771) (63
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation December 31, December 31, 2008 2007 Adjusted SG&A Expense Selling, general and administrative expenses $ 125,234 $ 98,500 Legacy legal adjustment 4,131 - Due diligence costs 582 - Adjusted selling, general and administrative expenses $ 120,521 $ 98,500 ____________________ No
Slide 33: Sales & Order Growth
Sales & Order Growth Sales Orders $ % $ % Year Ended December 31, 2005 $ 345.5 $ 370.4 Components of Growth: Organic Growth from Existing Businesses 40.7 11.8% 65.6 17.7% Acquisitions 4.8 1.4% 4.4 1.2% Foreign Currency Translation 2.6 0.8% 1.9 0.5% Total Growth 48.1 13.9% 71.9 19.4% Year Ended Decem
Slide 34: Non-GAAP Reconciliation
Non-GAAP Reconciliation Preliminary and Unaudited (amounts in dollars) EPS Range Projected 2009 net income per share - fully diluted $ 0.80 $ 0.87 Asbestos coverage litigation 0.28 0.28 Asbestos liability and defense costs 0.16 0.16 Income tax benefit at 32% (0.14) (0.14) Projected 2009 adjusted net