Slide 1: Second Quarter 2010 Earnings Call
fax Second Quarter 2010 Earnings Call July 28, 2010 6g ie ale ma Se: ey
Slide 2: Forward-Looking Statements
Colfas Forward-Looking Statements 2 2010 Earnings Call 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, stat
Slide 3: Colfax Q2 2010 Highlights
Colfax Q2 2010 Highlights 2 2010 Earnings Call = Adjusted net income of $7.6 million (18 cents per share) compared to $8.5 million (20 cents per share) in Q2 2009 =Net sales of $123.0 million compared to $129.2 million in Q2 2009, a decrease of 4.8% (organic decline of 3.1%) = Adjusted operating inc
Slide 4: Colfax Q2 2010 Highlights Continued
fax ne : Colfas Q2 2010 Highlights Continued 022010 Eamings Call =Business climate improving + Organic sales down modestly at 3% * Defense and general industrial up but offset by declines in other markets + Robust organic order growth — up 31% + Growth in commercial marine, power generation, general
Slide 5: Orders and Backlog
FAX orders and Backlog ozo ewes = 000 000 $1000 soo at al a a a at a a ot at a a mst _ ‘10% 2007 2008 2008 2008 2008 2009 2009 2009 2009 2010 2010 Businesses Aomistions os% - ore ex Transaion = fan a 42% TetalGrowth ———~——~S~CSA = as% es ‘
Slide 6: Revenue and Adjusted Operating Income
fax i i Revenue and Adjusted Operating Income 22010 Eerigs Cus $300.0 $500 $40.0 $2000 $30.0 $1000 $200 $10.0 $0.0 $0.0 a2 2009 a2 2010 yD YD a2 2009 02.2010 yD YD 2008 2010 2008 200 Existing Businesses = = (6 (3% Margin 14% 105% ae 968 Aequsitions 0B - 06% FX Translation = 2% eae) Total Growth (Des
Slide 7: Q2 2010 Sales and Orders by End Market
fax Q2 2010 Sales and Orders by End Market 2.2010 Eamings Call Orders: $155.6 million Defense 19% ceneral Initia 32% Power Cceneration co ol kcas 18% O18 ces We ‘Commercial ‘Commercial Marine Marine 2% 2% otal Growth Decline) Oxpanio Growth Desi ‘Total Growth Decne) Organic Growth (Dectne) commercia
Slide 8: 2010 YTD Sales and Orders by End Market
fax 2010 YTD Sales and Orders by End Market 2.2010 Eamings Call Orders: $275.1 million Defense 18 oat, ste oie 018 Gas\ 12% O18 Gas 18% ‘Commercial Commer Marine 27% oo fotal Growth Organi Growth (Decline) ‘Total Growth Destine! Organic Growth Decline) ‘Commercial Marine (109% (169% ‘Commerciat Mari
Slide 9: Q2 2010 vs. Q1 2010 Sales and Orders by End Market
fax Colas 2010 Q2 vs. 2010 Q1 Sales and Orders by End Market 2.2010 Eamings Call Total Growth (Decline) Organi Growth ‘Total Growth Decline) Organi Growth Commercial Marine aye 3% Commercial Marine (aye % 1a. Gas 35% 40% 18 Gas 101% 103% Power Generation a 3% Power Generation arm 91% Defense om om D
Slide 10: Commercial Marine Market Perspective
fax . : . Colfas Commercial Marine Market Perspective 022010 Eamings Call Colfax a2 10 Sales & Orders Growth (Decline) ‘Sales Spit Q210 Y-0-Y | Q210 YTD Y-0-Y | Q210 Sequential Total | Organic | Total | Organic | Total | Organic Sales | (6)% | (8)% | (10)%| (16)% | (4)% 3% Orders | 115%] 107% | 79%
Slide 11: Oil & Gas Market Perspective
fax’ oj i Colfas Oil & Gas Market Perspective 2.2010 Eamings Call Sales & Orders Growth (Decline) Paluaene Q210 Y-o-Y Q210 YTD Y-0-Y | Q210 Sequential Total | Organic | Total | Organic | Total | Organic Sales | (25)%| (22%) | (31)%| (31)% | 35% | 40% Orders | 8% 9% | (7)% | (8% | 101% | 103% Highlig
Slide 12: Power Generation Market Perspective
fax i i Colfas Power Generation Market Perspective 2.2010 Eamings Call Colfax a2 10 Sales & Orders Growth (Decline) “Sales Spit Q210Y-0-Y | Q240 YTD Y-0-Y | 210 Sequential Total | Organic | Total | Organic | Total | Organic Sales | (12)%| (9%) | (10)%| (10)% | (2% | 3% Orders] 51% | 57% | 7% 9% | 87
Slide 13: Defense Market Perspective
Colfax Defense Market Perspective Q2 2010 Eamings Call , Colfax a2 10 Sales & Orders Growth (Decline) “Sales Spit Q210 Y-0-Y | Q210 YTD Y-0-Y | Q210 Sequential Total | Organic | Total | Organic | Total | Organic Sales | 19% | 20% | 24% | 24% | 6% 6% Orders | (22)% | (21)% | (34)%] (30)% | 75% | 78%
Slide 14: General Industrial Market Perspective
Colfax General Industrial Market Perspective Sales & Orders Growth (Decline) Q210 Y-0-Y | Q210 YTD Y-0-Y | Q210 Sequential Total | Organic | Total | Organic | Total | Organic sales | 4% | 8% | (4)% | (4% | (11% | 5% Orders] 40% | 45% | 25% | 24% | 5% | 11% Highlights and Outlook *Sales up for the qu
Slide 15: Sales and Orders by Region; Europe and Currency Exposure
*Sales shipped to Europe were 45% of sales in 1H2010; we believe sales to Europe are closer to 1/3 as some OEM sales are shipped out of Europe * Southern Europe exposure minimal * Generally match manufacturing costs and sales; primarily translation exposure * European currencies generally represent
Slide 16: Strong Financial Condition
Colfax Strong Financial Condition *Strong balance sheet + Debt of $88 million, principal payments of $9 million in 2010, matures in 2013 + Cash = $63 million + $136 million available on revolver "Strong cash flow + LTM Adjusted EBITDA of $73 million El wes WP aig. = all mt Sp zetr 2 2010 Earnings Ca
Slide 17: Income Statement Summary (Three Months)
FAX income Statement Summary Onder: Sales Grou: Prost oof Sale: SG&A Expenses RAD Epexe Operating Expenses Sof Sale: ‘Adjusted Operating Income Soot Sale: Adjusted Net Income Soo Sale: Adjusted Net Income Per Share 2 2010 Earnings Call ‘Three Months Ended Data Fa 2010 uly 0 s 1556 ms $1 as s 30 192
Slide 18: Income Statement Summary (Six Months)
FAX income Statement Summary Onder: Sales Garces Profit Too Sale: SG&A Expenses RED Epexe Operating Expenses Soo Salar Adjusted Operating Income Soo Salar Adjusted Net Income Soo Salar Adjusted Net Income Per Share Six Month: Ended Taig, 2010 Fr s m1 $ s 2s § s $ s $ 7 7 0 m6 $315 255 $226 26 $ 7H)
Slide 19: Cash Flow Summary, Six Months Ended
Six Months Ended 2010 uy 52009 Netincome Non-cach expenses ‘Change in working capital and accrue bilities Other Total Operating Activities Capital expendinnes Other Total Investing Activities Repayment: ofborowing: Other Total Financing Activities Effect of exchange rates on cash Tncrence in cath (C
Slide 20: 2010 Outlook Summary
FAX 9010 outlook Summary ozo ewes Revenue Range 2010 Organic growth (dectine) er To (6% 2010 Total ‘$480 million To __$495milion EPS Range 2040 Net income per share $0.34 To $0.38, 2010 Adjusted net income per share ® $0.70, To S077 ————— ‘Asbestos coverage litigation $13 million ‘Asbestos liability
Slide 21: Appendix
Colfax Q2 2010 Eamings Call Appendix
Slide 22: Non-GAAP Disclaimer
FAX disciaimer 2 2010 Earnings Call Coax has provided financial infomation that has not been prepared in aocordance wih GAAP. These non-GAAP facial measures are adjusted ne income, sdustee natinoome per share, austed operating income, EBITDA, adjusted EBITDA. organic sales growth (decline) and organ
Slide 23: Non-GAAP Reconciliation
fax 7 aati Colfas Non-GAAP Reconciliation 022010 Eamings Call Three Months Ended Sis Months Faded Tuied 10 Ja 3.2008 ate 2.2010 Jair 0 Adjsted Net Income and Adjusted Farnings per Share Neincame 5 208 43688 1s 5 nz Resrucring and other related charges 3035 205 1078 17 Asbestos Laity and defense cost
Slide 24: Non-GAAP Reconciliation: EBITDA
fax , ati Non-GAAP Reconciliation «22010 Eamings Cal July 2.2010 EBITDA Netincome s Ineest pense Provision frincone tae Depreciation and anorzaion EBITDA 3 EBITDA maga Adjusted EBITDA Netacome s Ineest pense Provision frincone tae Depreciation and anortzation Reraturng and other related charges Asbe
Slide 25: Sales & Order Growth
Sales & Order Growth Connon f Change Earp iar eo cgi 10 patna = ag “eccerenin = pata Some — 2 2010 Earnings Call ene fo roa cos 387 oan) ate con eon 24
Slide 26: Non-GAAP Reconciliation of Projected 2010 Net Income Per Share
FAX Non-GAAP Reconciliation Colfax Corporation ‘Reconciliation of Projected 2010 Net Income Per Share to Adjusted Net Income Per Share Amounts in Dalla: (Candited) Projected net income per have filly diluted ‘Restracturng and other related charges incued year-to-date ‘Estimate restucturing and other