Slide 1: First Quarter 2016 Earnings Conference Call
FIRST QUARTER 2016 | EARNINGS CONFERENCE CALL
Slide 2: Forward-Looking Statements
2 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 Colfax's
Slide 3: Q1 2016 Results
Q1 2016 RESULTS
Slide 4: Q1 2016 Highlights
4 Q1 2016 HIGHLIGHTS • Organic revenue decline of 0.3% Q1 2016 Q1 2015 (In millions, except per share data) Revenue $ 876.8 $ 911.1 Adjusted Operating Profit $ 66.1 $ 81.2 Margin % 7.5 % 8.9 % Adjusted Net Income $ 36.9 $ 44.5 Adjusted EPS $ 0.30 $ 0.36 Unaudited
Slide 5: Fabrication Technology
FABRICATION TECHNOLOGY
Slide 6: Fabrication Technology Q1 2016 Results
6 FABRICATION TECHNOLOGY Q1 2016 RESULTS REVENUE Note: Dollars in millions (unaudited). ADJUSTED OPERATING PROFIT 11.7% 10.3% AFTERMARKET REVENUE 2016 GEOGRAPHIC EXPOSURE 2016 Volume (2.5)% Price/ Mix 0.6% Acquisitions —% FX Translation (7.3)% Total Decline (9.2)%
Slide 7: Gas and Fluid Handling
GAS AND FLUID HANDLING
Slide 8: Gas and Fluid Handling Q1 2016 Results
8 GAS AND FLUID HANDLING Q1 2016 RESULTS REVENUE Existing Businesses 1.7% Acquisitions 5.3% FX Translation (4.5)% Total Growth 2.5% Note: Dollars in millions (unaudited). ADJUSTED OPERATING PROFIT 8.6% 7.8% AFTERMARKET REVENUE 2016 GEOGRAPHIC EXPOSURE 2016
Slide 9: Orders and Backlog
9 ORDERS Existing Businesses (9.3)% Acquisitions 5.2% FX Translation (4.7)% Total Decline (8.8)% Note: Dollars in millions (unaudited). BACKLOG ORDERS AND BACKLOG Existing Businesses (14.5)% Acquisitions 3.5% FX Translation (5.0)% Total Decline (16.0)%
Slide 10: Q1 2016 Sales and Orders by End Market
10 Q1 2016 SALES AND ORDERS BY END MARKET SALES: $432.7 million Total (Decline) Growth Organic (Decline) Growth Power Generation (5.4)% (1.8)% Oil, Gas & Petrochemical 25.3% 24.7% Marine (8.0)% (5.5)% Mining (33.9)% (24.3)% General Industrial & Other 7.8% (1.4)% Total 2.5% 1.7% ORDERS: $407.6 millio
Slide 11: Power Generation Market Perspective
11 POWER GENERATION MARKET PERSPECTIVE SALES & ORDERS (DECLINE) GROWTH • Served by both Howden and Colfax Fluid Handling • Order increase due to strong bookings in China • Changes in China power market regulatory directives may negatively impact 2016 orders and 2017 revenues for new power capacity •
Slide 12: Oil, Gas & Petrochemical Market Perspective
12 OIL, GAS & PETROCHEMICAL MARKET PERSPECTIVE SALES & ORDERS GROWTH (DECLINE) • Served by both Howden and Colfax Fluid Handling • Period over period comparisons are difficult due to the timing of large projects • Project deferrals largely from customer spend restrictions are pushing orders into fut
Slide 13: Marine Market Perspective
13 MARINE MARKET PERSPECTIVE SALES & ORDERS DECLINE • Primarily served by Colfax Fluid Handling • Defense business continues to perform well • Despite slower start, expect orders down in high single digits for full year 2016 SALES SPLIT 2016 ORDERS SPLIT HIGHLIGHTS Note: Marine market comprised of c
Slide 14: Mining Market Perspective
14 MINING MARKET PERSPECTIVE SALES & ORDERS DECLINE • Primarily served by Howden • Remains a depressed market; focused on winning targeted projects 2016 SALES SPLIT 2016 ORDERS SPLIT HIGHLIGHTS Q1 2016 vs. Q1 2015 Total Organic Sales (33.9)% (24.3)% Orders (53.3)% (42.4)% 3% 3%
Slide 15: General Industrial & Other Market Perspective
15 GENERAL INDUSTRIAL & OTHER MARKET PERSPECTIVE SALES & ORDERS GROWTH (DECLINE) • Includes both Howden and Colfax Fluid Handling • Weak demand for heavy industrial capital equipment continued driver of sales and order declines • Rate of sales and order decline has moderated to levels expected for b
Slide 16: Results of Operations
RESULTS OF OPERATIONS
Slide 17: Income Statement Summary
17 INCOME STATEMENT SUMMARY (unaudited) Refer to Appendix for Non-GAAP reconciliation and footnotes. Note: Dollars in millions, except per share amounts. Three Months Ended April 1, 2016 March 27, 2015 Net sales $ 876.8 $ 911.1 Gross profit $ 280.5 $ 294.4 % of sales 32.0 % 32.3 % SG&A expense $ 214
Slide 18: Colfax
COLFAX > —— Se ——aan
Slide 19: Disclaimer
19 DISCLAIMER 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, adjusted operating income, adjusted operating income margin, organic sales growth (decline) and organi
Slide 20: Non-GAAP Reconciliation
20 NON-GAAP RECONCILIATION (unaudited) _____________________ Note: Dollars in thousands. Three Months Ended April 1, 2016 Three Months Ended March 27, 2015 Gas and Fluid Handling Fabrication Technology Corporate and Other Total Colfax Corporation Gas and Fluid Handling Fabrication Technology Corpora
Slide 21: Non-GAAP Reconciliation
21 NON-GAAP RECONCILIATION (unaudited) (1) The effective tax rates used to calculate adjusted net income and adjusted net income per share are 29.0% and 29.5% for the first quarters of 2016 and 2015, respectively. _____________________ Note: Dollars in thousands, except per share amounts. Three Mont
Slide 22: Change in Sales, Orders and Backlog
22 CHANGE IN SALES, ORDERS AND BACKLOG (unaudited) _____________________ Note: Dollars in millions. (1) Represents the incremental sales, orders and order backlog as a result of our acquisitions of RootsTM blowers and compressors and Simsmart Technologies. Net Sales Orders Backlog at Period End $ %