Slide 1: 1Q 2010 Earnings Call
fax 1Q 2010 Earnings Call April 30, 2010
Slide 2: Colfax Forward-Looking Statements
Colfax Forward-Looking Statements Qf 2010 Eamings Call 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, stat
Slide 3: Q1 2010 results summary
= Adjusted net income of $5.7 million (13 cents per share) compared to $10.4 million (24 cents per share) in Q1 2009, including positive currency effects of 1 cent per share *Net sales of $120.0 million compared to $136.3 million in Q1 2009, a decrease of 12.0% (organic decline of 17.1%) = Adjusted
Slide 4: Colfax Q1 2010 Highlights Continued
Colfax Q1 2010 Hi «Results better than expectations jights Continued 1 2010 Eamings Call * Organic sales down 17%; defense up 29% but offset by declines in other markets * Difficult comp in Q1 2009 as we were still growing and organic sales increased 18% in Q1 2009 compared to Q1 2008 * Organic orde
Slide 5: Revenue and Adjusted Operating Income
Revenue and Adjusted Operating Income Q1 2010 Eamings Ca $1000 $80.0 $60.0 $400 $200 $0.0 2006 2007 2008 2009. «at at 2006 2007 2008 2009 - ai at 2009 2010 2009 2010 eit = 2 eH enw = (Tay Migin 124% MU HBO eH am Burinerces Aequsitons = OHO = 08% PA translaion 71864 SI =a Total Growth 2% 185% (132% =
Slide 6: Colfax Orders and Backlog
Colfax Orders and Backlog oranoeamigs Gar 2008 2007 2008 209 = "at 208 at 2010 os at a2 as at at az os os ot are 2007 2008 2008 2008 2008 2009 2009 2008 2009 2010
Slide 7: Q1 2010 Sales and Orders by End Market
FAX 1.2010 sales and Orders by End Market Qt 2010 Eamings Call Sales: $120.0 million $119.6 million Defense ‘ceneral Industria 30% commercial Marine 2% ‘Total Growth (Decline) _Oxganio Growth Decting ‘Total Growth Decline) manic Growth (Decline ‘Commercial Marine (199% (2% ‘Commercial Marine si 7% o
Slide 8: Q1 2010 vs. Q4 2009 Sales and Orders by End Market
fax 2010 Q1 vs. 2009 Q4 Sales and Orders by End Market 1.2010 Eamings Call ‘Total Growth (Destine) Organi Growth (Decline ‘Total Growth (Decline) Organic Growth (Decfine) ‘Commercial Marine 10% 158 ‘Commercial Marine 75% 5% 18 Gas sy esr 1 Gas 4% a1% Power Generation 3% % Power Generation (ay (zap G
Slide 9: Colfax Commercial Marine Market Perspective
Colfax Commercial Marine Market Perspective Q1 2010 Year-Over-Year Results — Sales down 13% year-over-year (23% organic decline) — Orders up 54% year-over-year (37% organic growth) Q1 2010 vs. Q4 2009 Results — Sales up 10% quarter-over-quarter (15% organic growth) — Orders up 75% quarter-over-quart
Slide 10: Oil & Gas Market Perspective
AX oi i celta Oil & Gas Market Perspective ei aroRanngecal Q1 2010 Year-Over-Year Results Colfax 1 10 ‘Sales Split — Sales down 39% year-over-year (40% organic decline) — Orders down 28% year-over-year (30% organic decline) Q1 2010 vs. Q4 2009 Results — Sales down 49% quarter-over-quarter (49% organ
Slide 11: Colfax Power Generation Market Perspective
Colfax Power Generation Market Perspective Q1 2010 Year-Over-Year Results — Sales down 7% year-over-year (11% organic decline) — Orders down 31% year-over-year (33% organic decline) Q1 2010 vs. Q4 2009 Results — Sales down 3% quarter-over-quarter (1% organic growth) — Orders down 23% quarter-over-qu
Slide 12: Colfax Global Defense Market Perspective
Colfax Global Defense Market Perspective Q1 2010 Eamings Call Q1 2010 Year-Over-Year Results belvat so — Sales up 30% year-over-year (29% organic growth) — Orders down 42% year-over-year (42% organic decline) Q1 2010 vs. Q4 2009 Results — Sales down 30% quarter-over-quarter (30% organic decline) — O
Slide 13: Colfax General Industrial Market Perspective
fax ‘ \ Colfah General Industrial Market Perspective 1.2010 Eamings Call Q1 2010 Year-Over-Year Results Sates Se — Sales down 10% year-over-year (14% organic decline) — Orders up 12% year-over-year (7% organic growth) Q1 2010 vs. Q4 2009 Results — Sales up 8% quarter-over-quarter (13% organic growth
Slide 14: Colfax Profit Protection Plan Update
FAX Prosi i Colfah Profit Protection Plan Update 1.2010 Eamings Call *Continuing to rightsize to align capacity with demand *Major actions beginning in 2009: + Reduced temporary, contract and full-time employees (approximately 340 associates) + Implemented furlough programs in Germany (approximately
Slide 15: Colfax 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 $74 million Q1 2010 Eamings Call “4
Slide 16: Income statement summary
FAX’ jncome statement summary “Three Month: Ended Data pay 2000 _ Apr 3 2005 Orda s m6 S$ 131 $ GS) aoe Siler s mos B63 $64) RO s as $ S$ 63) 3.0% 348% s s S04 02 ¥ 3 308 s s $ 68) Goo s s 104 $ GQ ato 18 Adjusted Net Income Per Share s on 8 04 $ @I atENe = ae wg B= ake em Se ety Qt 2010 Eamings Cal
Slide 17: Statement of Cash Flows Summary
FAX’ statement of Cash Flows Summary Three Monthe Ended pra, 2010 _Aprit 3 3000 s 69 26 (Camge in working capital and accrued liabilities cy Other 76 Total Operating Activities 107 (Capital expendinaes » Total Investing Activities ep Repayments ofberronings ay aa Other 02) Total Financing Activities
Slide 18: 2010 outlook summary
FAX 2010 outlook summary secon 2010 Organic growth (dectine) % To (re = = (1) Excuses mpsct of sequstions ana fern exchange rate futons (2) Excuses mpac of asbestos coverage legate, asbesos abit and dense cess, an estucting as the read charges (@)Spetrate aso 4110 (See Append fr Non-GAAP receciaton)
Slide 19: Colfax Well Positioned for the Future
Colfax Well Positioned for the Future Proven Application Serving Fast 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 Organically and Thro
Slide 20: Appendix
Cpifax Appendix Q1 2010 Eamings Call ‘8
Slide 21: Non-GAAP financial information notice
Q1 2010 Eamings Call CCofax has provided financial information that has not boon prepared in accordance with GAAP. These non-GAAP financial measures ae adjusted net Income, adjusted netincome per share, adjusted operating income, EBITDA, adjusted EBITOA, organic sales growth (decline) and organic or
Slide 22: Non-GAAP Reconciliation
FAX Non-GAAP Reconciliation Adjusted Ne Income and Adjusted Earnings per Share Net oss income ‘Resmuctrngand oer elated charges “Ashen Lili and afc coms “Asbesos coverage Inignton erpenses ‘Tec adusment to tec rae of Adjusted net income “Adjsted at income margin ‘Weighted average shares ousimding- n
Slide 23: Non-GAAP Reconciliation
fax 7 iat Non-GAAP Reconciliation atmniesaneeal Three Mowe Eades Lae Tovne Mens ‘oa 2010 3208 Apri. 2010 EBITDA Net (loss) income 5 os se S 14208 mee apene 1a va (Gene) provision fer income aes es 6155 Depreciation and amorizatin ans 14788 ESTDA EBTDAmaree Adjusted EBITDA, Net ls incom 5 ws s 14208
Slide 24: Non-GAAP Reconciliation
FAX Non-GAAP Reconciliation Adjusted Operating Tacome (Opening income Restucning an other raed charges ‘Ashes lini and defense cos, Ashesos coverage Ingntion pense: PO lsed cons ‘Lepiy legal djustaent Due gene costs (ther post-employment benefit settenent Adjusted operating income Adjusted operating
Slide 25: Sales & Order Growth
FAX’ sates & order Growth Qt 2010 Eamings Call Backlog at Sates orders Period End ‘Three Month: Ended April3, 000 sea saa sma Components af Change Ensing busmases Ba ata asap Acquistons 0s 08% ose Foreign cuvency ensation 647% 27% ‘Teal Ts a209% ED a7 Three Months Ended April2, 2010 ———— Be we ete k
Slide 26: Reconciliation of Projected 2010 Net Income Per Share
fax 7 iat Non-GAAP Reconciliation atmniesaneeal Colfax Corporation Reconciliation of Projected 2010 Net Income Per Share to Adjusted Net Income Per Share “Amount: im Dollars (Canucited) EPS Range Projected et income per share - diluted S035 $ O45 ‘Rertucting snd othr relate charges incaned yesrto-da