Slide 1: Investor Presentation
Exhibit 99.1 Investor Presentation August 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 ~2,100 associates Pumps Pumps Cavity Pumps Systems Pumps Valves worldwide 15 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 growing global infrastructure driven end markets Leading brand names generating aftermarket sales and services Experienced management team in place to grow
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 Key Markets Markets Applications Applications Brands Brands Commercial Commercial Marine Marine Fuel Fuel oil oil transfer; transfer; oil oil transport; transport; wat
Slide 9: 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) Global Navy Asia & United Power Australia States Generation 6% 15% General Middle East 14% 22% Industrial (1) & Africa 5% Central & 41% South 14% 4% America Oil & Gas 3% Canada 51% 25% Commerc
Slide 10: 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 Gottmandingen Imo Monroe Sanford (2) LSC Colfax Wuxi Houston Tusha
Slide 11: Oil & Gas Markets – Strong Application Expertise
Oil & Gas Markets – Strong Application Expertise Situation Analysis Situation Analysis A Canadian energy company moves heavy crude oil along Major Venezuelan oil company moves 180,000 BPD of sand pipelines from the oil fields in Northern Canada through laden crude oil through pipelines using a compe
Slide 12: Expansion of Systems Business
Expansion of Systems Business Situation Analysis Situation Analysis Americas region OEM and end-user customers need A major Japanese OEM turbine manufacturer wanted turn-key solutions – not just pumps. to reduce installation time required at power plant construction sites. Initial focus - integrate
Slide 13: Targeting Aftermarket Opportunities
Targeting Aftermarket Opportunities Situation Analysis Situation Analysis Many wastewater treatment facilities purchase non-OEM Twin cities Gubin (Poland) and Guben (Germany) on (pirated) aftermarket spare parts for progressing cavity opposite sides of Neisse River each need to update sewage pumps.
Slide 14: Develop New Products, Applications and Technologies Driven by Voice of the Customer
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. 50% ene
Slide 15: Serving Infrastructure Driven End Markets
Serving Infrastructure Driven End Markets Estimated Market Expectations Market Size Expect international trade and demand for crude oil and other commodities as well as the age of the global merchant fleet to continue to create demand for new ship construction; however, expect new orders to be ~$2.0
Slide 16: 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 17: 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 18: 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 19: 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 20: Financial Overview
Colfax Financial Overview 19
Slide 21: Financial Performance Overview – 2005-2008
Financial Performance Overview – 2005-2008 Revenue Adjusted EBITDA (1) $640.0 $120.0 $560.0 $100.0 $480.0 $400.0 $80.0 $320.0 $604.9 $60.0 $105.6 $240.0 $506.3 $40.0 $88.2 $393.6 $160.0 $345.5 $64.1 $54.8 $20.0 $80.0 $0.0 $0.0 2005 2006 2007 2008 2005 2006 2007 2008 -- 11.8% 13.5% 13.9% 15.9% 16.3%
Slide 22: Financial Performance Overview – Current Quarter
Financial Performance Overview – Current Quarter Revenue Adjusted EBITDA (1) $300.0 $50.0 $40.0 $200.0 $30.0 $292.1 $49.5 $265.5 $20.0 $38.3 $100.0 $161.4 $27.5 $129.2 $10.0 $17.8 $0.0 $0.0 Q2 2008 Q2 2009 - YTD YTD Q2 2008 Q2 2009 - YTD YTD 2008 2009 2008 2009 Existing Businesses -- (10.2)% -- 2.4%
Slide 23: Income Statement Summary
Income Statement Summary Six Months Ended Delta 7/3/2009 6/27/2008 $ % Orders $ 224.9 $ 369.1 $ (144.2) (39.1)% Sales $ 265.5 $ 292.1 $ (26.6) (9.1)% Gross Profit $ 92.6 $ 105.0 $ (12.4) (11.8)% % of Sales 34.9% 35.9% Adjusted SG&A Expense $ 58.1 $ 60.2 $ (2.0) (3.4)% R&D Expense 3.1 3.0 0.1 4.6% Op
Slide 24: Statement of Cash Flows Summary
Statement of Cash Flows Summary Six Months Ended 7/3/2009 6/27/2008 Net income (loss) $ 11.2 $ (24.6) Non-cash expenses 7.7 4.3 Change in working capital and accrued liabilities (5.9) (32.8) Other 4.9 (3.9) Total Operating Activities $ 17.9 $ (57.0) Capital expenditures $ (5.9) $ (9.1) Other 0.1 0.1
Slide 25: Strong Financial Condition
Strong Financial Condition Strong balance sheet Debt to adjusted EBITDA = 1 Debt of $94 million, principal payments of $5 million in 2009, matures in 2013 Cash = $38 million $136 million available on revolver Strong cash flow Adjusted EBITDA (LTM) of $94 million ____________________ Note: As of 7/3/
Slide 26: Well Positioned for the Future
Well Positioned for the Future Proven Application Serving 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 Generating A
Slide 27: Appendix
Colfax Appendix 26
Slide 28: Disclaimer
Disclaimer Adjusted net income, adjusted net income per share, adjusted operating income and adjusted EBITDA exclude asbestos liability and defense costs (income) and asbestos coverage litigation expenses, certain legacy legal charges, restructuring and other related charges, certain due diligence c
Slide 29: Non-GAAP Reconciliation
Non-GAAP Reconciliation 2008 2007 2006 2005 EBITDA Net (loss) income $ (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 EB
Slide 30: 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 31: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Six Months Ended July 3, 2009 June 27, 2008 July 3, 2009 June 27, 2008 EBITDA Net income (loss) $ 4,366 $ (31,399) $ 11,227 $ (24,601) Interest expense 1,786 3,236 3,632 7,733 Provision (benefit) for income taxes 2,142 (12,679) 5,245 (9,101) Depreciation an
Slide 32: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Six Months Ended July 3, 2009 June 27, 2008 July 3, 2009 June 27, 2008 Adjusted Net Income and Adjusted Earnings per Share Net income (loss) $ 4,366 $ (31,399) $ 11,227 $ (24,601) Restructuring and other related charges 486 - 1,147 - IPO-related costs - 57,
Slide 33: Non-GAAP Reconciliation
Non-GAAP Reconciliation Three Months Ended Six Months Ended July 3, 2009 June 27, 2008 July 3, 2009 June 27, 2008 Adjusted SG&A Expense Selling, general and administrative expenses $ 28,586 $ 35,776 $ 58,112 $ 64,283 Legacy legal adjustment - 4,131 - 4,131 Adjusted selling, general and administrativ
Slide 34: Sales & Order Growth
Sales & Order Growth Sales Orders $ % $ % Three Months Ended June 27, 2008 $ 161.4 $ 188.8 Components of Growth: Existing Businesses (16.4) (10.2)% (72.3) (38.3)% Foreign Currency Translation (15.8) (9.8)% (12.4) (6.6)% Total Growth (32.2) (20.0)% (84.7) (44.9)% Three Months Ended July 3, 2009 $ 129