Enovis Corporation · NYSE:ENOV
Enovis — Colfax — Investor Presentation (November 2008)
30 slides from Enovis's investor presentation, Nov 10, 2008
Slide 1: Investor Presentation November 2008
fax Investor Presentation November 2008
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 = 2007 revenue of Products $506 million = ~2,000 associates worldwide * 16 principal production facilities in 7 countries = Over 300 direct sales and marketing associates = More than 450 authorized distributors in 79 countries = Headquartered in Richmond, VA [Colfax is stra
Slide 4: Background
Colfax 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 ha
Slide 5: Colfax Business System Drives Business Improvement
Colfax Colfax Business System Drives Business Improvement + Derived from the proven Danaher Business System = Utilize Voice of the Customer ('VOC") to target breakthrough growth —— | initiatives, new products and applications ian oe oem * Conduct root-cause [if oe oe ee el analysis, develop process
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
Slide 7: Broad Product Portfolio Focused on Customer Applications
Colfax Broad Product Portfolio Focused on Customer Applications Specialty Valves [ ‘Well recognized brands across served markets RE) <> eitr
Slide 8: Serving Critical Applications in Our Key End Markets
fax” seni \g Critical Applications in Our Key End Markets Commercial larine Power General 18 Oil'& Gas See Global Navy mesial Key Markets Applications Brands Marine Fuel oil ranster; ol transport; water and wastewater handling Altweiler, Houttuin, Imo AB oi18 Gas 5: unload Altweiler, Houttuin, Imo,
Slide 9: Strong Application Expertise
fax Strong Applicat Situation Analysis Situation Analysis mer design / build crit from Karama oilfield in westem Egypt to base system components for a new Finnish 1.6 GW nuclear production facility onto Sumed pipeline for storage and F plant further transfer Colfax Solution Colfax Solution n Experti
Slide 10: Develop New Products, Applications and Technologies
fax’ Develop New Products, Applications and Technologies Driven by Voice of the Customer Example: Commercial Marine End-user Problem: ~ Stricter environmental standards regarding inadvertent discharge of oily water in port resulting in large fines and s delays to ship owners {Gas Engine Pump Skid Co
Slide 11: Large and Diverse Customer Base and End Markets
Colfax Large and Diverse Customer Base and End Markets 2007 Revenues By End Markets 2007 Revenues By Geograph Blue Chip Customers SIEMENS = SR © ENERAL DYNAMICS } AHYUNDAI I Blue chip customer base with no single customer more than 3% of sales in 2007 | Be wg ae wh me Se er
Slide 12: Serving Fast Growing Infrastructure Driven End Markets
Colfax Serving Fast Growing Infrastructure Driven End Markets =o ips, bulk carriers, ~sa.8bn 3226) energy infrastructure projects economies Inthe US, ~80.30n for ‘Sovereign Secunty concems ~$28.40n [ Favorable long term demand driven by global infrastructure build Be wg we wh me Ser
Slide 13: Extensive Global Sales, Distribution and Footprint
Colfax ive Global Sales, Distribution and Footprint ‘# me AB stocnol Hosta "a hater Baton saws {Hs et Gotan Americas Asia Pacific ~ 700 Associates ~ 1,000 Associates ~ 300 Associates 2007 Sales “) = $148mm 2007 Sales (") = $274mmy 2007 Sales ) = $83mm. % of Revenue: 29% % of Revenue: 54%, of Revenue
Slide 14: 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 capabi
Slide 15: 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 Est, 1931 ‘oa. 1997 oq. 1997 eg, 1998 * High quality, reliable products used in critical applications : + Tendency for customers to. HOUTTUINE! | — replace ‘like for li
Slide 16: Continue to Pursue Strategic Acquisitions that Complement Our Platform
Colfax Continue to Pursue Strategic Acquisitions that Complement Our Platform Acquisition Initiatives = Continue to proactively engage with highly strategic targets = Product, market and geographically focused searches + Evaluate opportunistic bolt-on companies * Pursue adjacent fluid handling acqui
Slide 17: 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 $5 - $7 million before
Slide 18: Financial Overview
Colfak Financial Overview
Slide 19: Financial Performance Overview
fAX° Financial Performance Overview Revenue SG&A\as 2% of Revenue $600.0 bead sespeot $3000 $2400 $1200 $00 Existing 2004 2008 2007 2004 200820082007 Businesses 110% 13556 uistens = 1 0% FxTranslason — 01% _08% Total Growth 118% 13.9% EBITDA Adjusted EBITDA” ‘$1500 $1000 1200 600 $900 $600 $600 400
Slide 20: Orders and Backlog
Colfax Orders and Backlog “ 2 Strong order and backlog growth Be ge es a me SS er
Slide 21: Revenue and Adjusted EBITDA
Colfax ” Revenue and Adjusted EBITDA Revenue $500.0 tng Busintses 143% - 18% Acquatons. = 1086 2 13% FxTranslason = _7.1%6 = 93% Total 224% 229% Adjusted EBITDA () $80.0 A $60.0 $40.0 $200 $0. 932007 a32008 == «=D. YTD 2007 2008 %eMargin 162% 15.7% 163% 165% Consistent track record of profitable sal
Slide 22: Income Statement Summary
fAX™ income Statement Summary Orders Sales Gross Proft % of Sales Adusted SG&A Expense % of Sales ‘Adjusted Operating Income % of Sales ‘Adusted EBITDA % of Sales ‘Adjusted Net Income ales ‘Adjusted Net Income Per SI hare S Nine Months Ended 6/2008 _ 9128/2007 5429 $4250 4455 $3626 1594 $1264 35.8%
Slide 23: Statement of Cash Flows Summary
FAX” statement of Cash Flows Summary Net income Non-Cash Exp tangein Working Capital and Accrued Lables Total Operating Activites Copia! Expendtures Acquis Teal Investing Activities Net Borrowings Proceeds from IPO, Net of Offering Costs Dividends Paid Other Total Financing Activities, Effect of Exc
Slide 24: Positioned for the Future
ned for the Future Global Leader in Specialty Fluid Handling Products Leading Brand Names Generating Aftermarket Sales and Services Proven Application Expertise in Solving Critical Customer Needs ni Growing Infrastructure Driven End Markets Experienced Management Team in Place to Grow Organically an
Slide 25: Appendix
Colfak Appendix tg, w= ale mes <p 2eir
Slide 26: Disclaimer
Colfax Disclaimer Adjusted net income, adjusted net income per share, adjusted operating income, EBITDA, adjusted EBITDA, adjusted selling, general and administrative expenses, organic sales growth and organic order growth are non-GAAP financial measures. Adjusted net income, adjusted net income per
Slide 27: Non-GAAP Reconciliation
Colfax Non-GAAP Reconciliation
Slide 28: Non-GAAP Reconciliation
Colfax Non-GAAP Reconciliation Ajnied Net Income and Adj Earnings pe Share a 20%) eT coat, e028) an, 20%)
Slide 29: Non-GAAP Reconciliation
FAX” Non-GAAP Reconciliation EBITDA Net (loss) income S G4gs2 SOF S127 $57,306 Interest expense 19.246 4,186 94026 G18 (Benefit) provision for income taxes 30,147 3.866 6,907 (6,010) 15239 ast 430_ 9.872 EBITDA S__138.s14_$_29.627_ $39,610 _$ 68.086 Adjusted EBITDA Netincome S G48s2 SS 12247 57,306
Slide 30: Sales and Order Growth
FAX” sales and Order Growth “Three Months Ended September 28,2007 ssa S186 Conon of ro rohan sg Pines m9 143% 87 ee 12 10% 22 Torin Cure Taston 90 71% 93 Toul Gromth —sr 2» ar “Three Months Ended September 26,208 =r aa seerebamiantl S306 s R80 Components of Gr rps Gown Esng Dic 27 118% ws Acquis 47