Slide 1: Investor Presentation
Investor Presentation May 7, 2010 ae Wl ee = ale meet Se: er
Slide 2: Colfax 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: Colfax Company Overview
Coifad Compahy Overview Colfax Corporation = 2009 revenue of $525 million . 2&3 Screw Centrifugal Fluid Handling | Pr Gear | Specialty = ~2,000 associates Pumy Pum Systems Pum Valves worldwide 55 Pumps = 13 principal Bla production facilities in final 7 countries bead = Over 300 direct sales and mar
Slide 4: Colfax Background
Colfax Background Colfax Corporation = Founded in 1995 = Equity capital provided by Mitch and Steve Rales, founders of Danaher (NYSE: DHR) = Targeted global industrial companies with strong brands = 13 acquisitions, 5 divestitures = Exclusively focused on fluid handling industry = Proven, experience
Slide 5: Colfax Business System Drives Business Improvement
Colfax Colfax Business System Drives Business Improvement = Derived from the proven Danaher Business System Colfax Corporation = Utilize Voice of the Customer (“VOC”) to target WORLD CLASS PERFORMANCE breakthrough growth initiatives, new products and Increased Shareholder applications Profitable Sat
Slide 6: Colfax Investment Highlights
Colfax Investment Highlights n Py Colfax Corporation = 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 = Exp
Slide 7: Broad Product Portfolio Focused on Customer Applications
fax Broad Product Portfolio Focused on Customer Applications = a Colfax Corporation 3 Screw Pumps Progressive Cavity Pumps Precision Gear Pumps Well recognized brands across served markets Specialty Valves
Slide 8: Serving Critical Applications in Our Key End Markets
fax Serving Critical Applications in Our Key End Markets Colfax Corporation Commerci Oil & Gas Power Global General Marine Generation Defense Industrial Key Markets Applications Brands Commercial Marine Oil & Gas Power Generation Global Defense General industrial Fuel oil transfer; oil transport; wa
Slide 9: Large and Diverse Customer Base and End Markets
fax Large and Diverse Customer Base and End Markets a Colfax Corporation 2009 Revenues By End Markets 2009 Revenues By Geography (2) Global Defense General Industrial (1) GENERAL DYNAMICS Blue cl customer base with no single customer representing more than 4% of sales in 2009 Ty eee) chee peesng Ren
Slide 10: Extensive Global Sales, Distribution and Manufacturing Footprint
Colfax Extensive Global Sales, Distribution and Manufacturing Footprint Colfax Corporation Ton. 3 2009 Sales“ sarin 2009 Sales = 68mm leur * tno % of Revenue; 30%-”/ % of Reventie: 18 if oO % of Revenue! 52% Global footprint allows us to serve fast growing, developing markets Br WP ig: pats mle mit
Slide 11: Oil & Gas Markets — Strong Application Expertise
fax oj 7 icati i Oil & Gas Markets — Strong Application Expertise Coitax Corporation 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 Northem Canada through laden crude
Slide 12: Expansion of Systems Business
fax Expansion of Systems Business Situation Analysis ‘Americas region OEM and end-user customers need turn-key solutions — not just pumps. Colfax Solution = Colfax Americas Engineered Systems business started in 2007 to address need for highly engineered systems = Services offered include: custom en
Slide 13: Develop New Products, Applications and Technologies
Colfax Develop New Products, Applications and Technologies Driven by Voice of the Customer Colfax Corporation Step 1 voc) Step 18 Vee summary All-Heat SMART Benefits 1. Senses wear & alerts end-user 2. Easy to upgrade EMTEC SMART. All-Fuel SMART Benefits Benefits 1. 50% energy usage 1. Efficient sea
Slide 14: Serving Infrastructure Driven End Markets
‘Commercial Marine fax Serving Infrastructure Driven End Markets Colfax Corporation Estimated Bie eee ‘nthe commercial marine industry, we expect intemationa trade and demand for crude ol and other commoctes 2s wel asthe age of the global merchant flee! fo continue fo create demand for new ship cons
Slide 15: Target Fast Growing Regions
fax ing Regi Colfad Target Fast Growing Regions Colfax Corporation = Capitalize on growth opportunities by offering regionally developed products and solutions = Continue to invest in sales and marketing capabilities to more effectively serve local Asia Pacific markets = Leverage application experti
Slide 16: Leading Brands Generating Aftermarket Sales and Services
Colfax Leading Brands Generating Aftermarket Sales and Services « Product history dating back to 1860 provides large installed base « High quality, reliable products used in critical applications = Tendency for customers to replace “like for like” products = Significant aftermarket demand for replac
Slide 17: Continue to Pursue Strategic Acquisitions that Complement Our Platform
Colfax Continue to Pursue Strategic Acquisitions that Complement Our Platform Colfax Corporation = Continue to proactively engage with highly strategic targets = Product, market and geographically focused searches = Evaluate opportunistic bolt-on companies = Pursue adjacent fluid handling acquisitio
Slide 18: Asbestos Update
fax Asbestos Update Colfax Corporation = Claims arise from purchased components previously included in our products. = Significant solvent insurance coverage = Bad faith lawsuit against insurance carriers increases costs in process = Estimated annual liability and related defense costs of $4 million
Slide 19: Financial Overview
Coifak Financial Overview Colfax Corporation 18
Slide 20: Financial Performance Overview — 2006-2009
fax Financial Performance Overview — 2006-2009 Colfax Corporation Revenue Adjusted Operating Income“. $120 $100 $80 $60 $40 $20 $0 so 2006 2007 2008 2006 2007 2008 2009 Exsting Businesses 135% 1B teMargn 134% ate 15.0% row equitions = so% vk 2X Transiaton = 11% ss Total Growth (Destine) em 19.5% Bac
Slide 21: Financial Performance Overview — Current Quarter
fax Financial Performance Overview — Current Quarter Colfax Corporation Revenue Adjusted Operating Income“. $150 $20 $15 $100 $10 $50 $5 ‘$0 $0 sing 04 2000 1.2010 on a1 2009 a 2010 neon rola ‘25% as% cautions - ows “Tot! Growt (osc) ~ zone $150 100 $50 so Qt 2009 a1 2010 ‘stngBuenesess = (ear ‘equa
Slide 22: Income Statement Summary
fax Income Statement Summary ‘Three Months Ended Delta April, 2010 April 3, 2009 5 % Orders $ 1196S 1231 $ G5) @m% Sales $ 1200 $ 1363 $ (164) (12.0% Gross Profit $ 4g $ 8.0 S$ (63) (13.0)% % of Sales 34.8% 35.2% SG&A Expenses s 299 S$ 25° S$ 04 R&D Expense 1s 14 02 Operating Expenses 5 as S 309 «S0
Slide 23: Statement of Cash Flows Summary
fax Statement of Cash Flows Summary Net (loss) income ‘Non-cash expenses Change in working capital and accrued liabilities Other Total Operating Activities Capital expenditures Total Investing Activities ‘Repayments of borrowings Other Total Financing Activities Effect of exchange rates om cash Incr
Slide 24: Profit Protection Plan Update
Colfax Profit Protection Plan Update = = Colfax Corporation =Continuing to rightsize to align capacity with demand =Major actions beginning in 2009: = Reduced temporary, contract and full-time employees (approximately 340 associates) = |mplemented furlough programs in Germany (approximately 90 full-
Slide 25: Strong Financial Condition
Colfax Strong Financial Condition =Strong balance sheet = 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 Adjusted EBITDA of $74 million Colfax Corporation 24
Slide 26: Well Positioned for the Future
fax Well Positioned for the Future Colfax Corporation Proven Application Serving Expertise in Solving Growing Infrastructure Critical Customer Needs Driven End Markets Global Leader in Specialty Fluid Handling Products Experienced Management Team in Place to Grow CBS-Driven Culture Focused Organical
Slide 27: Appendix
Coifak Appendix Colfax Corporation 26
Slide 28: Disclaimer
fax Disclaimer Colfax Corporation Colfax has provided financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures, are adjusted net income, adjusted net income per share, adjusted operating income, EBITDA, and adjusted EBITDA. Adjusted net income, adju
Slide 29: Non-GAAP Reconciliation
fax Non-GAAP Reconci Colfax Corporation 2009 3008 2007 3006 Adjusted Operating Income Operating income s 38459 S$ 16689 § 1RDTSS 19,543, Restructuring and other related charges 18,175 _ Asbestos liability and defense costs 2.193) am 21,783 Asbestos coverage litigation expenses 11742 17.162 12.033, I
Slide 30: Non-GAAP Reconciliation
fax Non-GAAP Reconci Colfax Corporation ‘Three Months Ended Adjusted Net Income and Adjusted Earnings per Share ‘Net (loss) income s 653) $ 6861 Restructuring and other related charges 4,039 661 Asbestos liability and defense costs, 1.435, 1645 ‘Asbestos coverage litigation expenses 3.881 2966 ‘Tax
Slide 31: Non-GAAP Reconciliation
fax Non-GAAP Reconci Colfax Corporation ‘Three Month: Ended Last Twelve Months 010 EBITDA Net (loss) income 8 653) 8 6ssl S$ 14208 Interest expense 1813 1.846 7179 (Benefit) provision for income taxes 67) 3.103 6.155 Depreciation and amortization 3,735, 3373 14.788, EBITDA 8 468 $ 151888 42.330 EBIT