Slide 1: Third Quarter 2020 Earnings
Third Quarter 2020 Earnings October 28, 2020
Slide 2: Agenda
Agenda IDEX Business Overview • Q3 Overview • COVID-19 Opportunities • End Market Update Financials • Q3 Performance • Operating Profit Q4 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: #13694806 • 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: Q3 Overview
Q3 Overview Living with the Virus moving to the New Normal • Continuing to leverage COVID playbook • Strong teams delivering globally • Continued focus on solving our customers’ challenges Business Resilience • Effectively managing business recovery • Diversified portfolio balancing declines • Conti
Slide 7: COVID-19 Organic Opportunities
COVID-19 Organic Opportunities CUSTOMER NEED IDEX SOLUTION Portable spraying solutions leveraging Enhanced Cleaning electrostatic spraying technology IDEX Health & Science producing Testing Capacity cartridges for rapid, point-of-care testing Pharma Independence MPT projects facilitating retention o
Slide 8: COVID-19 Testing
COVID-19 Testing • IDEX Health & Science Microfluidics capabilities are enabling rapid Point-of-Care molecular diagnostic testing for COVID-19 ‒ The IDEX technology is at the heart of consumable cartridges used within customers POC testing devices ‒ These cartridges are a critical component in the p
Slide 9: Market Update
Market Update FLUID & METERING HEALTH & SCIENCE FIRE & SAFETY / TECHNOLOGY TECHNOLOGY DIVERSIFIED 2020 Q3 REVENUE $221M $220M $141M % OF TOTAL 38% 38% 24% Industrial Life Sciences Dispensing Chemical Analytical Instrumentation Rescue Energy Industrial / Other Fire END MARKETS Water Food / Pharma Aut
Slide 10: Organic Order Performance
Organic Order Performance Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 1.6% -3.2% -7.3% -9.7% -12.9% -17.5% -23.0% Monthly improvement experienced in all segments 10
Slide 11: Financials
Financials IDEX Proprietary & Confidential
Slide 12: IDEX Q3 Financial Performance
IDEX Q3 Financial Performance (Dollars in millions, excl. EPS) Sales Earnings Per Share* 8% decrease Organic: 12% decrease $1.52 $1.40 $624 $581 Q3 Q3 2019 2020 2019 2020 Operating Margin* Free Cash Flow 210 bps decrease 7% decrease 25.2% $146 $135 23.1% Q3 Q3 2019 2020 2019 2020 Q3 financial estima
Slide 13: Q3 Adjusted Operating Income Walk
Q3 Adjusted Operating Income Walk (Dollars in millions) Expected flow Organic flow Total flow Margin through through through Impact (60%) (37%) (53%) $25M of income improvement from cost and price actions IDEX Proprietary & Confidential 13
Slide 14: Q4 Summary
Q4 Summary Organic revenue expected to be down 3% - 5% Significant discretionary cost reductions already taken, top line organic flow through ~40% Pivoting to offense as core business and cash flow resiliency evident Free cash flow conversion greater than 100% of net income 14 IDEX Proprieta
Slide 15: Appendix
Appendix IDEX Proprietary & Confidential
Slide 16: Fluid & Metering Technologies
Fluid & Metering Technologies (Dollars in millions) Orders Sales Operating Margin* Organic: 8% decrease Organic: 17% decrease 550 bps decrease $233 $241 32.2% $223 $221 26.7% Q3 Q3 Q3 2019 2020 2019 2020 2019 2020 Q3 Sales Mix: Organic -17% Q3 Highlights: Industrial & Energy markets remain challen
Slide 17: Health & Science Technologies
Health & Science Technologies (Dollars in millions) Orders Sales Operating Margin* Organic: 3% decrease Organic: 6% decrease 70 bps decrease $211 23.8% $209 $230 23.1% $220 Q3 Q3 Q3 2019 2020 2019 2020 2019 2020 Q3 Sales Mix: Organic -6% Q3 Highlights: Acquisition 1% Scientific Fluidics & Optics n
Slide 18: Fire & Safety / Diversified Products
Fire & Safety / Diversified Products (Dollars in millions) Orders Sales Operating Margin* Organic: 4% decrease Organic: 10% decrease Flat YoY $143 $155 $140 27.2% 27.2% $141 Q3 Q3 Q3 2019 2020 2019 2020 2019 2020 Q3 Sales Mix: Organic -10% Q3 Highlights: Fire markets down due to project timing, OE