Slide 1: Financial Outlook & Summary
FINANCIAL OUTLOOK & SUMMARY SCOTT BRANNAN | SVP and CFO STEVE SIMMS | President and CEO Journey Toward Excellence
Slide 2: Fourth Quarter Update
2 FOURTH QUARTER UPDATE • Trending toward bottom of guidance range • Gas- and fluid-handling performing as expected • Fabrication technology continued softness: –Revenue expected to be down mid-single digits organically –Margins expected to be below third quarter
Slide 3: 2015 Update
3 2015 UPDATE • Organic revenue flat to down 2% • FX revenue headwinds of ($180) - ($190) million, resulting in ($17) - ($18) million impact on operating profit • Excludes any accretion from future acquisitions • Includes $20 million additional adjusted operating profit from the Victor acquisition •
Slide 4: 2015 Organic Growth Outlook
4 2015 ORGANIC GROWTH OUTLOOK 2015 FORECAST ORGANIC GROWTH Fabrication Technology 0-2% Howden (4)-(2)% Colfax Fluid Handling (4)-(2)% Total Colfax (2)-0% Note: Guidance as of 12/16/14.
Slide 5: 2015 Rollforward
5 2015 ROLLFORWARD (in millions, except per share) Low High 2014 guidance - sales/ adjusted operating income 4,675$ 4,725$ 468$ 478$ FX (180) (190) (17) (18) Victor - incremental 130 140 20 23 Projected before actions 4,625 4,675 471 483 Non-recurring 2014: Impairment and business sale/loss — — 15 1
Slide 6: 2015 Outlook Summary
6 2015 OUTLOOK SUMMARY REVENUE RANGE 2015 Total $4.525 billion To $4.675 billion EPS AND ADJUSTED NET INCOME RANGE 2015 Net income per share $1.92 To $2.13 Adjusted net income $282 million To $308 million 2015 Adjusted net income per share (1) $2.20 To $2.40 ASSUMPTIONS Restructuring costs $50 milli
Slide 7: 2015 Summary
7 2015 SUMMARY • Continued improvement in low growth environment – Choppy macroeconomic outlook: areas of strength offset by regional weakness – CBS and restructuring keep us on track to meet margin goals • Growth investments and acquisition pipeline position us for expansion – Intense focus on both
Slide 8: Non-GAAP Disclaimer
8 NON-GAAP DISCLAIMER Colfax has provided financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures are projected adjusted net income, projected adjusted net income per share, adjusted operating income, organic revenue and organic sales growth (decli
Slide 9: Non-GAAP Reconciliation
9 NON-GAAP RECONCILIATION (Unaudited) Projected net income per share - diluted $ 1.92 $ 2.13 Restructuring costs 0.39 0.39 Tax adjustment (0.11) (0.12) Projected adjusted net income per share - diluted $2.20 $2.40 2015 EPS Range Note: Guidance as of 12/16/14.
Slide 10: Non-GAAP Reconciliation - Organic Revenue
10 NON-GAAP RECONCILIATION - ORGANIC REVENUE (Unaudited) $ % (Dollars in millions) Proforma for the year ended December 31, 2011 (1) 3,839.1$ Components of Change: Existing Businesses 202.2 5.3 % Acquisitions (2) 86.5 2.2 % Foreign Currency Translation (213.9) (5.6)% Total 74.8 1.9 % For the year en
Slide 11: Non-GAAP Reconciliation - ESAB Organic Revenue
11 NON-GAAP RECONCILIATION - ESAB ORGANIC REVENUE (Unaudited) Source: Company filings. (1) For 2011, proforma net sales includes the operations acquired in the Charter Acquisition for 2011, except for the first 12 days. (2) Represents the incremental sales as a result of acquisitions. The impact rel
Slide 12: Non-GAAP Reconciliation - Inorganic Revenue
12 NON-GAAP RECONCILIATION - INORGANIC REVENUE (Unaudited) Source: Company filings. $ % (Dollars in millions) Proforma for the year ended December 31, 2011 (1) 3,839.1$ Components of Change: Existing Businesses 202.2 5.3 % Acquisitions (2) 86.5 2.2 % Foreign Currency Translation (213.9) (5.6)% Total