Slide 1: Creating a Leading Multi-Platform Global Enterprise
CREATING A LEADING fax MULTI-PLATFORM GLOBAL ENTERPRISE September 12, 2011 cle
Slide 2: Safe Harbor Statements
SAFE HARBOR STATEMENTS "voto ares ‘Bane eee pone Tipessnce ryt x ‘ty tree te
Slide 3: Introductory Remarks
. INTRODUCTORY Colfax REMARKS cle
Slide 4: Combination Rationale
COMBINATION RATIONALE Strong industrial logic; consistent with strategic vision Accelerates Growth Strategy + Meaningful recurring revenue stream ruresi-itie=cy) + Considerable exposure to emerging markets Profile + Strong secular growth drivers 2 d Provides Long-Term Value Creation Opportunities +
Slide 5: Key Transaction Terms
KEY TRANSACTION TERMS * Total i i £1,528mm. $2,426mm)* + 910p per share consideration Form of consideration: certainty of cash plus upside from value creation + 730p in cash and 0.1241 shares Colfax stock per Charter share + “Mix & match” alternative available ancing: designed to retain flexibility
Slide 6: Our Model
OUR MODEL Long-term growth driven by Colfax Business System (CBS) and world class team RECRUIT TOP TALENT PAST PRESENT FUTURE a INTEGRATE AND IMMERSE
Slide 7: Our Vision
OUR VISION PLATFORM PLATFORM 2 PLATFORM 3 PLATFORM 4
Slide 8: Charter Snapshot
CHARTER SNAPSHOT Leading global manufacturer of welding & cutting and air & gas handling solutions Publicly-traded; listed on London Stock Exchange Approximately 12,000 associates worldwide 2010 revenue: £1,720mm (approximately $2,732mm)* 2010 adjusted operating margin: 8.5%? Two divisions: ESAB (we
Slide 9: Accelerates Growth Strategy
ACCELERATES GROWTH STRATEGY Global footprint; balanced portfolio Pro-Forma Revenues by Platform & Geography 011 ETM Pro-Foxma = Fluid & Air Handling Welding & Cutting
Slide 10: Enhances Business Profile
ENHANCES BUSINESS PROFILE Attractive business strong secular growth drivers. Meaningful recurrit markets H 2011 LTM Pro-Forma = $3.5 LIM Pro-For 5 Foremarket Emerging Developed Markets Balance between short and Aftermarket \ Long Cycle Short Cycle cle
Slide 11: Provides Value Creation Opportunities
PROVIDES VALUE CREATION OPPORTUNITIES Numerous opportunities to strengthen both businesse: * Colfax Business System opportunity + Margin improvement * Working capital reduction + Expanded acquisition runway * Geographic and product add-ons in Welding + Complementary products and technologies in Air
Slide 12: Financially Compelling
FINANCIALLY COMPELLING Significant accretion and strong returns on capital”; ‘committed to maintaining strong balance sheet. Financing sources: + $2,100mm fully-underwritten credit facility (including $300mm undrawn revolver) + $805mm new equity from Colfax founders, Directors and BDT Capital Partne
Slide 13: Charter International
7 _ CHARTER @X° INTERNATIONAL cle
Slide 14: Charter Overview
CHARTER OVERVIEW Strong player in served markets; attractive business mix Revenues by Product Line & Geography ‘1H2011 LIM = £1.80 + Leang payor n served markets & cutting equipment and nsumabies Heavy ty fans an neat exchangers sew ‘and piston compressors aba sociale Growl arene of revenues from em
Slide 15: Products & Applications: ESAB
PRODUCTS & APPLICATIONS: ESAB technology and innovation leader AFTERMARKET REVENUES 1H 2011 LTM= £1.20 aN _—_ WELDING Aftermarket GEOGRAPHIC EXPOSURE 42011 LTM CUTTING ‘" GAS APPARATUS fa:
Slide 16: Products & Applications: Howden
PRODUCTS & APPLICATIONS: HOWDEN L ty energy, power and mining key drivers of revenues AFTERMARKET REVENUES 1H 2011 LTM = Aftermarket CENTRIFUGAL AXIAL FAN Foremarket PISTON COMPRESSOR ia Cpifak SCREW COMPRESSOR GEOGRAPHIC EXPOSURE 014 LIM = £0.60 Developed Economies
Slide 17: Revenue and Backlog Trends
REVENUE AND BACKLOG TRENDS Strong revenue growth; healthy backlog REVENUE HOWDEN BACKLOG £1,887 2 2006 2007 2008 20092010 Hi 2Hos N09 2Ho9 AMI. «210. HAL MESAB Howden Siero Célfax
Slide 18: Margin & Working Capital Trends
MARGIN & WORKING CAPITAL TRENDS for margin and ADJUSTED OPERATING PROFIT! WORKING CAPITAL . o —— =| ~. : ‘oo | {= e182 175% fn i z 100 128 wn : a : 7 ~ = am = Eee ae ree ese a
Slide 19: Colfax Summary
Colfax SUMMARY cle
Slide 20: Creating a Leading Multi-Platform Global Enterprise
CREATING A LEADING MULTI-PLATFORM GLOBAL ENTERPRISE | qe « 4
Slide 21: Colfax Questions
Colfax QUESTIONS cle