Slide 1: Investor Presentation December 2010
Investor Presentation December 2010
Slide 2: Restatement
fax Cotta Restatement Colfax Corporation The financial information presented herein has been restated to correct an overstatement of the Company's pension liability. While preparing the 2010 census data for our defined benefit pension plan actuarial valuations, the Company determined that previous a
Slide 3: Forward-Looking Statements
fax -Looki Cotta Forward-Looking Statements Chilton Conooeation 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
Slide 4: Company Overview
Cotta Company Overview Colfax Corporation = Global leader in specialty fluid-handling solutions = Diverse end markets = Global reach with leading brands = Problem solvers for critical fluid-handling applications = Balanced growth approach: acquisitions and organic = Colfax Business System = Committe
Slide 5: Background
Cotta Background Colfax Corporation = Founded in 1995 = Equity capital provided by Mitch and Steve Rales, founders of Danaher (NYSE: DHR) Targeted global industrial companies with strong brands 14 acquisitions, 5 divestitures Began trading on the NYSE in May 2008 There are approximately 5,000 pump c
Slide 6: End Market and Geographic Diversity
fax End Market and Geographic Diversity Colfax Corporation 2009 Revenues ($525M) By Geography © 2009 Revenues ($525M) By End Markets Deteree General Bowst Induct Generation America oa Gas Canada ‘Commercial Marine Europe (1) Revenues based an ou shipping destination 2009 Foremarket & Aftermarket Sal
Slide 7: Broad Product Portfolio Focused on Customer Applications
fax Broad Product Portfolio Focused on Customer Applications Colfax Corporation 2and|3 Screw Pumps Centrifugal Pumps Progressive Cavity Pumps 4 » Precision Gear Pumps Specialty Valves Fluid Handling Systems Well recognized brands across served markets @ Be we @= ake mn SS ee
Slide 8: Strategy — Fluid Handling
Cotta Strategy — Fluid Handling Colfax Corporation = Differentiation = Voice of the customer aligned solutions and services = Critical fluid-handling applications = Lowest total cost of ownership = Most responsive = SMART capabi
Slide 9: Colfax Strategic Priorities
Colfax Strategic Priorities = Intensify the application of CBS tools (EMEAA focus) = Align into a global functional organizational structure Colfax Corporation = Utilize Voice of the Customer process to drive differentiated product development = Grow Asia Enhancing the foundation for sustained growt
Slide 10: Intensify Application of CBS
Coifax Intensify Application of CBS = Align with the customer = Think and act breakthrough = Drive immersion Colfax Corporation = Execute a unified PD (Policy Deployment) = Execute point-of-impact action plans CBS — People, Planning, Process & Performance
Slide 11: Continue to Pursue Strategic Acquisitions
Colfax Continue to Pursue Strategic Acquisitions Acquisition Criteria Strong brand name recognition Leading market position Global reach and manufacturing Differentiated product technology / highly engineered solutions Complementary end market / geographic focus Attain double digit return on investm
Slide 12: Baric Systems
Coifax Baric Systems =Acquired in August =Premier supplier of engineered fluid-handling systems = Primary operations in Blyth, UK = Serves oil & gas, petrochemical and power markets = Installed base of 3,000 systems worldwide *Backlog = $42 million at 10/1/10 Colfax Corporation "
Slide 13: Oil & Gas Market
FAX oil & Gas Market Applications = Crude oil gathering = Pipeline services = Unloading and loading = Rotating equipment lubrication = Lube oil purification Brands: Allweiler, Baric, Houttuin, Imo, LSC, Tushaco, Warren Market Trends = Long-term demand for oil projected to increase * Increased propor
Slide 14: Defense
fax : Defense Colfax Corporation Applications Colfax 2009 Sales Split = Fuel oil transfer = Oil transport = Water and wastewater handling + Firefighting Brands: Allweiler, Fairmount, Imo, Imo AB, Portland Valve, Warren Market Trends = Recent growth in Navy funding = Focus on automation = Modernizati
Slide 15: General Industrial
o) fax General Industrial Colfax Corporation Colfax 2009 Sales Split Applications = Chemical processing = Machinery lubrication = Hydraulic elevators = Pulp and paper processing = Food and beverage processing Brands: Allweiler, Fairmount, Houttuin, Imo, Tushaco, Warren, Zenith Market Trends = Demand
Slide 16: Commercial Marine
fax Commercial Marine Colfax Corporation Colfax 2009 Sales Split Applications = Fuel oil transfer = Oiltransport = Water and wastewater handling Brands: Allweiler, Houttuin, Imo AB Market Trends = Long-term increase in global trade = Aging fleet and increased environmental regulations = Approximatel
Slide 17: Power Generation
fax Power Generation Colfax Corporation Colfax 2009 Sales Split Applications = Fuel unloading, transfer, burner and injection = Rotating equipment lubrication = Hydroelectric hydraulics Brands: Allweiler, Baric, Imo, Tushaco, Warren Market Trends = Worldwide demand for electricity expected to double
Slide 18: Aftermarket Sales & Service
fax Aftermarket Sales & Service Colfax Corporation Colfax 2009 Aftermarket Sales Market Trends * Significant aftermarket demand for replacement products stermarket = Tendency for customers to replace "like for like" products Our Strategy = Leverage large installed base = Expand service center networ
Slide 19: Asbestos Update
fax Asbestos Update Colfax Corporation Claims arise from purchased components previously included in our products Significant solvent insurance coverage Suits against insurance carriers expected to be completed within next 6-12 months Estimated annual liability and related defense costs of $4-5 mill
Slide 20: Financial Overview
Colfax Financial Overview Colfax Corporation 19
Slide 21: Strong Financial Condition
Colfax Strong Financial Condition "Strong balance sheet = Debt of $85 million, principal payments of $9 million in 2010, matures in 2013 = Cash = $43 million = $133 million available on revolver =Strong cash flow = Working capital to annualized sales improved to 22% from 25% = Inventory on hand redu
Slide 22: Financial Performance Overview — 2006-2009
fax Financial Performance Overview — 2006-2009 Revenue Colfax Corporation $700 $600 $500 $400 $300 $200 $100 $0 2006 Adjusted Net Income! $60 $50 $40 $30 $20 $10 $0 2006 Restated Restated Yamergin 7.8% (Re Apgeecnr Won. CARP crete. 2007 2007 9.0% 2008 2009 2008 2009 Restate 84% led Restated 2.0% Adj
Slide 23: Financial Performance Overview — 2006-2009 (continued)
fax Financial Performance Overview — 2006-2009 (continued) Colfax Corporation $400 $350 $300 $250 $200 $150 $100 $50 $0 2006 2007 2008 2009 2006 2007 2008 2009 22
Slide 24: Financial Performance Overview — Current Quarter
fax : Finan | Performance Overview — Current Quarter Colfax Corporation Adjusted) Operating Income? Revenue $400 $300 $200 $100 $0 @32009 32010 yD YTD 2009 2010 tng eum 8 a8 = “ise sequutont = 28 - tm Fa Tantaton = eae = os Toll Grown (Ovane) gy 0% = arn Orders $400 $300 $200 $100 $0 @32009 32010 yD
Slide 25: Income Statement Summary — Three Months
fax Income Statement Summary tee cermoration ‘Three Months Ended Delia Ocioher 2010 Ociober 2, 2009 ¥ % Restated Orders $ 141 § 172°«§ «69 59% Sales $ 1324 § m5 § 39 © 30% Gross Profit $ a $ 42° $ 09 19% % of Sales 35.6% 359% SG&A Expenses $ mo § m9 $ 2 (73% RED Expense 16 15 o1 39% Operating Expens
Slide 26: Income Statement Summary — Nine Months
fax Income Statement Summary tee cermoration [Nine Months Ended Delia Ocioher 2010 Ociober 2, 2009 g % Restated Orders $ 3902 «$ ms $ 4 107% Sales $ 3753 § B41 $08 ATM Gross Profit $ 1318 $ ms § 6D GOK % of Sales 35.1% 352% SG&A Expenses $ a8 § 85 $ 24 (28% RED Expense 47 46 o1 26% Operating Expense
Slide 27: Aligning Assets and Resources to Drive Best-of-Class Results
Colfax Aligning Assets and Resources to Drive Best-of-Class Results Colfax Corporation + Perform a thorough assessment of the business + Build the best team + Establish the strategic vital few and focus on them + Initiate a global functional organizational structure aligned with our customers + Inte
Slide 28: Investment Highlights
Coifax Investment Highlights = Strong portfolio of brands, products, and solutions = Diverse end markets and geographies = Strong balance sheet to fund organic growth initiatives and acquisitions = Commitment to build the best team = CBS intensity and potential = Our values Colfax Corporation Drivin
Slide 29: Appendix
Colfax Appendix Colfax Corporation 28
Slide 30: Disclaimer
fax Disclaimer Colfax Corporation Colfax has provided financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures are adjusted net income, adjusted net income per share and adjusted operating income. Adjusted net income, adjusted net income per share a
Slide 31: Non-GAAP Reconciliation
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Slide 32: Non-GAAP Reconciliation
fax Non-GAAP Reconciliation Colfax Corporation Three Months Ended Nine Months Ended Ociaber1,2010 October 2,2009 Ociaher 1,2010 October 2, 2009 Restated Restated Adjusied Net Income and Adjusted Earnings per Share Net income $ 5851 $ 550 $ 7565 § 101 Restructuring and other elated charges 24a 9,608