Enovis Corporation · NYSE:ENOV
Enovis — Colfax — KeyBanc Capital Markets Industrial, Automotive and Transportation Conference 2010
25 slides from Enovis's conference presentation, Jun 2, 2010
Slide 1: KeyBanc Capital Markets Industrial, Automotive and Transportation Conference
Exhibit 99.1 KeyBanc Capital Markets Industrial, Automotive and Transportation Conference June 2, 2010
Slide 2: 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 plans, objectives, expectati
Slide 3: Company Overview
Global Defense Oil & Gas Power Generation General Industrial Commercial Marine Delivering solutions for critical applications Company Overview Global leader in specialty fluid-handling pumps, valves and systems Global reach Strong brands Application engineering expertise Growth through organic initi
Slide 4: End Market and Geographic Diversity
34% 26% 17% 14% 9% 24% 44% 7% 18% 5% 2% 2009 Revenues ($525M) By End Markets 2009 Revenues ($525M) By Geography (1) Blue Chip Customers End Market and Geographic Diversity (1) Revenues based on our shipping destination. Large and diverse customer base and end markets; no customer more than 4% of sal
Slide 5: Strategy – Fluid Handling
Strategy – Fluid Handling Differentiation through responsive VOC-aligned SMART solutions and services for the most critical fluid-handling applications
Slide 6: Strategic Priorities
Strategic Priorities Drive operational improvement breakthroughs in EMEAA Realign into a global functional organizational structure Utilize Voice of the Customer process to drive differentiated product development Intensify focus on growth in Asia Leveraging our strengths and values to deliver best-
Slide 7: Continue to Pursue Strategic Acquisitions
Completed 13 acquisitions since 1995 Continue to Pursue Strategic Acquisitions Acquisition Criteria: Strong brand name recognition Leading market position Global reach and manufacturing Differentiated product technology / highly engineered product solutions Complementary end market / geographic focu
Slide 8: Intensify Application of CBS
Intensify Application of CBS Align with the customer Think and act breakthrough Drive immersion Execute a unified PD (Policy Deployment) Execute point-of-impact action plans Continuous improvement CBS – People, Planning, Process & Performance
Slide 9: Oil & Gas Market
Oil & Gas Market Applications: Crude oil gathering; pipeline services; unloading and loading; rotating equipment lubrication; lube oil purification Market Trends Long-term demand for oil projected to increase especially in developing countries Heavy and highly viscous oil to account for increasing s
Slide 10: Global Defense
Global Defense Applications: Fuel oil transfer; oil transport; water and wastewater handling; firefighting; fluid control Market Trends Recent growth in Navy funding Focus on automation – less manpower, cost reductions, increased efficiency Modernization and expansion of ROW navies Our Strategy Leve
Slide 11: General Industrial
(1) General Industrial Applications: Machinery lubrication; hydraulic elevators; chemical processing; pulp and paper processing; food and beverage processing Market Trends Demand driven by capital investment long-term General industrial strengthening in Asia, Europe and U.S.; three consecutive quart
Slide 12: Commercial Marine
Commercial Marine Applications: Fuel oil transfer; oil transport; water and wastewater handling Market Trends International trade and demand for bulk commodities and oil to drive new ship construction long-term Aging fleet and environmental regulations requiring ship owners to upgrade or replace shi
Slide 13: Power Generation
Power Generation Applications: Fuel unloading, transfer, burner and injection; rotating equipment lubrication Market Trends Worldwide demand for electricity is expected to double by 2030 Majority of growth in developing countries Our Strategy Grow China, India and Middle East Participate in efficien
Slide 14: Strong Financial Condition
Strong balance sheet (1) Debt of $90 million, principal payments of $9 million in 2010, matures in 2013 Cash = $60 million $136 million available on revolver Strong cash flow LTM ended 4/2/10 Adjusted EBITDA of $74 million Inventory reduction of $4 million in 1Q 2010 Capital priorities Acquisitions
Slide 15: Financial Performance Overview – 2006-2009
Revenue Orders Backlog Adjusted Operating Income (1) Financial Performance Overview – 2006-2009 (1) Refer to Appendix for Non-GAAP reconciliation. Note: Dollars in millions. % Margin 13.4% 14.4% 15.0% 12.6% Total Growth (Decline) 19.5% (13.2)% Existing Businesses 28.6% 13.9% (8.1)% Acquisitions 1.1%
Slide 16: Financial Performance Overview – Current Quarter
Revenue Orders Backlog Adjusted Operating Income (1) Financial Performance Overview – Current Quarter 0.4% -- Acquisitions (12.0)% -- Total Growth (Decline) 4.7% -- FX Translation (17.1)% -- Existing Businesses (1) Refer to Appendix for Non-GAAP reconciliation. Note: Dollars in millions. 8.5% 12.5%
Slide 17: 2010 Outlook Summary
Revenue Range EPS Range Assumptions 2010 Outlook Summary $500 million To $480 million 2010 Total (9)% To (5)% 2010 Organic growth (decline) (1) $0.77 To $0.67 2010 Adjusted net income per share (2) $0.45 To $0.35 2010 Net income per share (1) Excludes impact of acquisitions and foreign exchange rate
Slide 18: Aligning Assets and Resources to Drive Best-of-Class Results
Strong financial condition CBS – solid institutional knowledge Experienced team Large installed base Business unit structure Application engineering expertise Global reach & diverse end markets Strong brands & broad product portfolio Improve balance sheet with CBS tools Intensify application Realign
Slide 19: Investment Highlights
Strong portfolio of brands, products, and solutions Diverse end markets and geographies Strong balance sheet to fund organic growth initiatives and acquisitions Global sourcing opportunities Commitment to build the best team CBS intensity and potential Our values Investment Highlights Getting aligne
Slide 20: Colfax Corporation
Colfax Colfax Coporation
Slide 21: Non-GAAP financial information notice
Colfax has provided financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures are projected adjusted net income per share, adjusted operating income, EBITDA and adjusted EBITDA. Adjusted operating income and adjusted EBITDA exclude asbestos liability
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation Projected net income per share - diluted $ 0.35 $ 0.45 Restructuring and other related charges incurred year-to-date 0.06 0.06 Estimated restructuring and other related charges 0.06 0.06 Asbestos coverage litigation expenses 0.14 0.14 Asbestos liability and defense costs 0.06
Slide 23: Non-GAAP Reconciliation
____________________ Note: Dollars in thousands. Non-GAAP Reconciliation Adjusted Operating Income Operating income 38,459 $ 16,689 $ 123,275 $ 19,543 $ Restructuring and other related charges 18,175 - - - Asbestos liability and defense (income) costs (2,193) (4,771) (63,978) 21,783 Asbestos coverag
Slide 24: Non-GAAP Reconciliation
Non-GAAP Reconciliation ____________________ Note: Dollars in thousands. April 2, 2010 April 3, 2009 Adjusted Operating Income Operating income $ 11,810 $ Restructuring and other related charges 4,039 Asbestos liability and defense costs 1,435 1,645 Asbestos coverage litigation expenses 3,881 2,966
Slide 25: Non-GAAP Reconciliation
Non-GAAP Reconciliation ____________________ Note: Dollars in thousands. Last Twelve Months April 2, 2010 EBITDA Net income 14,208 $ Interest expense 7,179 Provision for income taxes 6,155 Depreciation and amortization 14,788 EBITDA 42,330 $ EBITDA margin 8.3% Adjusted EBITDA Net income 14,208 $ Int
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