Enovis Corporation · NYSE:ENOV
Enovis — Colfax — Gabelli & Company Pump, Valve & Motor Symposium (February 2009)
30 slides from Enovis's conference presentation, Feb 18, 2009
Slide 1: Gabelli & Company Pump, Valve & Motor Symposium
fax Gabelli & Company Pump, Valve & Motor Symposium February 18, 2009
Slide 2: 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: Company Overview
Colfax Company Overview = 2008 revenue of $605) million . 2& c Progress = ~2,000 associates. Pumps Pum) Pump: worldwide = 16 principal i/ a es | production facilities in / 7 countries \ i f : — . = Over 300 direct sales and marketing associates = More than 450 authorized distributors am ial i1& Gas
Slide 4: Colfax Background
fax” 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 hand
Slide 5: Colfax Business System Drives Business Improvement
fax” Colfax Business System Drives Business Improvement = Derived from the proven Danaher Business System = Utilize Voice of the Customer (“VOC”) to target breakthrough growth = ey initiatives, new products and applications | | Be wee | aaa eee eee eee Time Delivery - Products and Services Prontabie
Slide 6: Investment Highlights
Colfax Investment Highlights Global leader in specialty fluid handling products Proven application expertise in solving critical customer needs Serving fast growing global infrastructure driven end markets Leading brand names generating aftermarket sales and services = Experienced management team in
Slide 7: Broad Product Portfolio Focused on Customer Applications
Colfax Broad Product Portfolio Focused on Customer Applications 2. and|3 Screw Pumps Centrifugal Pumps Progressive Cavity Pumps \ Specialty Valves
Slide 8: Serving Critical Applications in Our Key End Markets
fax Serving Critical Applications in Our Key End Markets Commerci Power General ain See aie Key Markets Marine Oil & Gas Power Generation Global Navy General industrial Applications Fuel oil transfer; oll transport; water and wastewater handling Crude oil gathering; pipeline services; unloading and
Slide 9: Strong Application Expertise
Colfax Strong Application Expertise Situation Analysis Husky Energy moves heavy crude oil along pipelines from the oil fields in Northern Canada through extremely harsh environment to a central blending facility Colfax Solution = For the past 40 years Husky has turned to Colfax and the Imo 8L 3 scre
Slide 10: Develop New Products, Applications and Technologies
Colfax Develop New Products, Applications and Technologies Driven by Voice of the Customer Step 1a — VOC Summary| Step 1- VOC All-Heat SMART Benefits 1. Senses wear & alerts ve E end-user 2. Easy to upgrade EMTEC SMART All-Fuel SMART Benefits Benefits 1. 50% energy usage ' 1. Efficient seal reductio
Slide 11: Large and Diverse Customer Base and End Markets
fax Large and Diverse Customer Base and End Markets 2007 Revenues By End Markets 2007 Revenues By Geography (2) Global Naw Middle East & Affica Central & South —= Canada Blue Chip Customers % SIEMENS GENERAL DYNAMICS AHYUNDAI HEAVY INDUSTRING CO, LTD. Ty tn 8) cnet races Bua PB) Uy TDN, Waste 0) FET
Slide 12: Extensive Global Sales, Distribution and Manufacturing Footprint
Colfax Extensive Global Sales, Distribution and Manufacturing Footprint + imo AB Stockhol Houituin 1 Allwelter Bottrop Allweiler 6% Allweiler Radatfzelt Tours \shweiter Gottmandingen imo Monroe. Lsce Houston 4 Colfax Wuxi Tushaco’ eee | “veni | : % \ Americas | | EMEA | Asia Pacific ~ 700 Associates
Slide 13: Target Fast Growing Regions
Colfax 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 capabili
Slide 14: 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 15: Continue to Pursue Strategic Acquisitions that Complement Our Platform
Colfax Continue to Pursue Strategic Acquisitions that Complement Our Platform = Continue to proactively engage with = Acquire companies in the fluid handling highly strategic targets industry * Product, market and geographically * Strong brand name recognition focused|seatches = Leading market posit
Slide 16: Financial Performance - Revenue
fax Financial Performance - Revenue Revenue (1 $700.0 (Sin millions) $600.0 $500.0 $400.0 $300.0 $200.0 $309.7 $100.0 $0.0 2005 2006 2007 2008 Estimate Existing Businesses = 11.0% 135% 14% ‘Acquisitions “ 1.4% 8.0% 1% FX Translation = 0.8% 1.4% em Total Growth = 13.8% 28.8% 19% ee ee = ale ti SS er
Slide 17: Financial Performance - Adjusted EBITDA
fax Financial Performance — Adjusted EBITDA Adjusted EBITDA (S in millions) $100.0 $80.0 $60.0 $40.0 $20.0 $0.0 + 2004 2005 2006 2007 % Margin 13.2% 16.5% 16.5% 17.4% (yeti Apna oc Non Sane concn,
Slide 18: Financial Performance - Orders
fax Financial Performance — Orders Orders (in millions) $700.0 oe, $600.0 Pe) $500.0 ay $400.0 $300.0 $200.0 $370.4 $100.0 $0.0 + 2005 2006 2007 2008 Estimate Existing Businesses Se 117% 17.8% 1% ‘Acquisitions ss 1.2% 6% 2% FX Translation - 05% 7.8% o% Total Growth = 194% 31.50% 18% (7) ter pena or
Slide 19: Financial Performance - Backlog
Colfax Financial Performance — Backlog $400.0 $350.0 $300.0 $250.0 $200.0 $150.0 $100.0 $50.0 $0.0 + Backlog (S in millions) : G $337 $1793 $118.3 2005 2006 2007 2008 Estimate 18
Slide 20: Strong Financial Condition
Colfax Strong Financial Condition = Debt to adjusted EBITDA < 1 times as of the end of the third quarter (covenant — 3.25 to 1.00) = Fixed charge coverage > 6 times as of the end of the third quarter (covenant — 1.5 to 1.0) = Approximately $133 million available on revolver at year end (expires in 2
Slide 21: 2009 Outlook Summary
fax” 2009 Outlook Summary Revenue a 2009 Organic growth () 3% 2009 Total $670 million to $585 million EPS Range 2009 Net income per share $0.80 to $0.87 2009 Adjusted net income per share $1.10 to $1.17 (1) Exctudes impact of foreign exchange rate fluctuations and acquisitions (2) Excludes impact of
Slide 22: 2009 Outlook Assumptions
fax” 2009 Outlook Assumptions Assumptions Asbestos coverage litigation $12 million Asbestos liability and defense costs $7 million Euro $1.41 Tax rate 32% Interest expense $8 million Incremental public company costs $2.5 million Outstanding shares 43.3 million a
Slide 23: Well Positioned for the Future
fax 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 Through
Slide 24: Appendix
Cpifak Appendix 23
Slide 25: Asbestos Update
Colfax 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 approximately $7 million
Slide 26: Disclaimer
Colfax Disclaimer Adjusted net income per share, adjusted EBITDA, organic sales growth and organic order growth are non-GAAP financial measures. Adjusted net income per share, and adjusted EBITDA exclude asbestos liability and defense cost (income) and asbestos coverage litigation expense, certain l
Slide 27: Non-GAAP Reconciliation
FAX Non-GAAP Reconciliation 207 2006 2008 2004 EBITDA Net (loss) income S 64.882 $ 94 $ 12.247 $ 57,306 Interest expense 19.246 14,186 9,026 6.918 (Benefit) provision for income taxes 39,147 3,866, 6,907 (6.010) Depreciation and amortization 15,230 11.481 11.430 9.872 EBITDA S 138.514 $ 29,627 _$ 39
Slide 28: Sales & Order Growth
fax Sales & Order Growth Sales Growth, (amounts in millions) 2006, 2007 Prior Year Sales 3 303.6 Components of Growth: Organic Growth from Existing Businesses 40.7 11.8% 533 13.5% Acquisitions 48 14% 8.0% Foreign Custency Translation 26 0.8% 7.1% Total Growth 1 127 28.6% ‘Current Year Sales 3 3536 O
Slide 29: Sales & Order Growth
fax Sales & Order Growth (amounts in millions) (preliminary unaudited) Sales Orders s % Ss % ‘Twelve Months Ended December 31,2007 $506 S581 Components of Growth: Organic Growth from Existing Businesses 70 14% a 1% Acquisitions 6 % 12 2% Foreign Currency Translation 2B 5% 35 6% Total Growth 99 19% 3
Slide 30: Non-GAAP Reconciliation
Colfax Non-GAAP Reconciliation (amounts in dollars) (preliminary unaudited) Projected net income per share - fully diluted Asbestos coverage litigation Asbestos liability and defense costs Income tax benefit at 32% Projected adjusted net income per share - fully diluted EPS Range $080 $ 087 0.28 0.2
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