Slide 1: Second Quarter 2020 Earnings
Second Quarter 2020 Earnings July 24, 2020
Slide 2: Agenda
Agenda IDEX Business Overview • Q2 Overview • COVID-19 • End Market Update Financials • Q2 Performance • Operating Profit • Liquidity Q3 Summary Q&A 2 IDEX Proprietary & Confidential
Slide 3: Replay Information
Replay Information • Dial toll–free: 877.660.6853 • International: 201.612.7415 • Conference ID: #13694805 • Log on to: www.idexcorp.com 3 IDEX Proprietary & Confidential
Slide 4: Cautionary Statement
Cautionary Statement Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures This presentation and discussion will include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate
Slide 5: Business Update
Business Update IDEX Proprietary & Confidential
Slide 6: Q2 Overview
Q2 Overview We are in this fight! • Employees going above and beyond • Essential products delivered globally • Innovating with Customers Executing in an challenging environment • Operations and Supply Chain performing • Diversified portfolio balancing declines • Record Q2 cash flow generation Contro
Slide 7: Operating our COVID-19 Playbook
Operating our COVID-19 Playbook Focus on our people around the world and actions taken to Safety keep people physically, emotionally, and financially safe Prepared to manage our businesses in a volatile environment; Business how we handle supply chain, internal operations and customer Continuity dis
Slide 8: COVID-19 Microfluidics
COVID-19 Microfluidics IDEX Materials Processing Technologies’ (MPT) Microfluidizer ® is a key technology being used in the development of a COVID-19 vaccine, specifically enabling the creation of vaccine adjuvants. Adjuvants added to the vaccine allow the body to produce a better immune response Th
Slide 9: Market Update
Market Update FLUID & METERING HEALTH & SCIENCE FIRE & SAFETY / TECHNOLOGY TECHNOLOGY DIVERSIFIED 2020 Q2 REVENUE $219M $216M $127M % OF TOTAL 39% 38% 23% Industrial Life Sciences Dispensing Chemical Analytical Instrumentation Rescue Energy Industrial / Other Fire END MARKETS Water Food / Pharma Aut
Slide 10: Financials
Financials IDEX Proprietary & Confidential
Slide 11: IDEX Q2 Financial Performance
IDEX Q2 Financial Performance (Dollars in millions, excl. EPS) Sales Earnings Per Share* 27% decrease Organic: 17% decrease $1.50 $642 $1.10 $561 Q2 Q2 2019 2020 2019 2020 Operating Margin* Free Cash Flow 340 bps decrease 36% increase 24.5% $161 $118 21.1% Q2 Q2 2019 2020 2019 2020 Q2 guidance achie
Slide 12: Q2 Adjusted Operating Income Walk
Q2 Adjusted Operating Income Walk (Dollars in millions) $157 3 $119 5 15 5 (66) 2Q'19 ACT Organic Volume FY19 Cost Actions Discretionary Price/Productivity/Mix Acq / FX 2Q'20 ACT Margin Expected flow Organic flow Total flow Impact through through through 60% 38% 48% $25M of income improvement from c
Slide 13: Liquidity
Liquidity (Dollars in millions) FREE CASH FLOW ADJUSTED LEVERAGE(1) $600 $516 200% $477 $500 $423 180% $362 $389 $400 $322 160% 138% $300 133% 140% 114% 115% 112% $200 103% 120% $100 100% $- 80% 2015 2016 2017 2018 2019 LTM Free Cash Flow FCF / Net Income Cash on Hand and Term Debt Maturities $900 $
Slide 14: Q3 Summary
Q3 Summary ▪ Organic revenue expected to be down 12% - 17% ▪ Significant discretionary cost reductions already taken, top line flow through ~45% ▪ Managing short-term volatility while investing for long-term growth ▪ Free cash flow conversion greater than 100% of net income 14 IDEX Proprietary & Con
Slide 15: Appendix
Appendix IDEX Proprietary & Confidential
Slide 16: Fluid & Metering Technologies
Fluid & Metering Technologies (Dollars in millions) Orders Sales Operating Margin* Organic: 20% decrease Organic: 20% decrease 450 bps decrease $242 $246 30.5% $199 $219 26.0% Q2 Q2 Q2 2019 2020 2019 2020 2019 2020 Q2 Sales Mix: Organic -20% Q2 Highlights: ❑ Industrials markets challenged as the slo
Slide 17: Health & Science Technologies
Health & Science Technologies (Dollars in millions) Orders Sales Operating Margin* Organic: 11% decrease Organic: 10% decrease 180 bps decrease $232 24.6% $219 $198 22.8% $216 Q2 Q2 Q2 2019 2020 2019 2020 2019 2020 Q2 Sales Mix: Organic -10% Q2 Highlights: Acquisition 4% ❑ Life Sciences continue to
Slide 18: Fire & Safety / Diversified Products
Fire & Safety / Diversified Products (Dollars in millions) Orders Sales Operating Margin* Organic: 24% decrease Organic: 22% decrease 390 bps decrease $168 $164 27.1% $127 23.2% $126 Q2 Q2 Q2 2019 2020 2019 2020 2019 2020 Q2 Sales Mix: Organic -22% Q2 Highlights: ❑ Fire markets down as municipalitie