Slide 1: Third Quarter 2023 Earnings
Third Quarter 2023 Earnings October 26, 2023 1
Slide 2: Agenda
Agenda IDEX Business Update Q3 2023 Financial Performance Segment Performance 2023 Guidance Summary Q&A IDEX Proprietary & Confidential 2
Slide 3: Replay Information
Replay Information • Dial toll–free: 877.660.6853 • International: 201.612.7415 • Conference ID: #13734464 • Log on to: www.idexcorp.com IDEX Proprietary & Confidential 3
Slide 4: Cautionary Statement
Cautionary Statement Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures This presentation contains “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other
Slide 5: Chief Financial Officer: Leadership Announcement
Chief Financial Officer: Leadership Announcement IDEX Welcomes New SVP and Chief Financial Officer: Abhi Khandelwal Allison Lausas Abhi Khandelwal Thank you for strong Welcome back interim leadership! to IDEX! 5 IDEX Proprietary & Confidential 5
Slide 6: Business Update
Business Update IDEX Proprietary & Confidential 6
Slide 7: IDEX Overview
IDEX Overview Third Quarter Results: • Strong profitability and cash generation • Order rate stabilization • Micropump divestiture • $150M Term Loan repayment Looking Ahead: • Raising full year adjusted EPS guide to $8.13 to $8.18 • Expect order rate stability for balance of 2023 • Continued focus o
Slide 8: Financials
Financials IDEX Proprietary & Confidential 8
Slide 9: IDEX Q3 2023 Financial Performance
IDEX Q3 2023 Financial Performance (Dollars in millions, excl. EPS) Sales Adjusted Earnings per Share* -6% Organic* -1% Decrease $824 $793 $2.14 $2.12 Q3 2022 includes $17.9M accelerated deferred revenue related to the exit of COVID-19 testing application Q3'22 Q3'23 Q3'22 Q3'23 Adjusted EBITDA Marg
Slide 10: Q3 2023 Adjusted EBITDA Walk
Q3 2023 Adjusted EBITDA Walk $ 231 (Dollars in millions) 9 $ 226 8 18 3 (6) (37) 3Q'22 ACT Organic Price / Mix Resource Variable Acq/Div/ 3Q'23 ACT ADJ EBITDA* Flow Thru Productivity / Investment / Compensation FX ADJ EBITDA* Inflation Discretionary Flow through Organic flow Total flow @ PY GM%* thr
Slide 11: IDEX Q3 2023 Segment Performance
IDEX Q3 2023 Segment Performance Fluid & Metering Technology Health & Science Technology Fire & Safety / Diversified Q3 Revenue $301M / 38% of Total Q3 Revenue $313M / 39% of Total Q3 Revenue $181M / 23% of Total • Industrial slows as expected • Pressure across AI/Life Sciences • Dispensing outlook
Slide 12: 2023 Guidance Summary
2023 Guidance Summary Fourth Quarter Full Year Current Prior Current Guidance Guidance Guidance Revenue% vs. Prior Year Organic* (9%) - (8%) (2%) - (1%) (2%) - (1%) Adjusted EBITDA%* ~26% ~27% ~27.5% Earnings per Share Reported $1.50 - $1.55 $6.80 - $6.90 $7.91 - $7.96 Adjusted* $1.74 - $1.79 $7.90
Slide 13: Appendix
Appendix IDEX Proprietary & Confidential 13
Slide 14: Fluid & Metering Technologies
Fluid & Metering Technologies (Dollars in millions) Orders Sales Adjusted EBITDA Margin* -5% Organic* -1% Organic* +50 bps* $311 $308 $301 33.9% 34.4% $294 Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3 Sales Mix: Organic (1%) Q3 Highlights: Industrial market slowing as expected Acquisition/Divestiture (2
Slide 15: Health & Science Technologies
Health & Science Technologies (Dollars in millions) Orders Sales Adjusted EBITDA Margin* -24% Organic* -15% Organic* -410 bps* $322 $345 31.0% $265 $313 26.9% Q3'22** Q3'23 Q3'22** Q3'23 Q3'22 Q3'23 Q3 Sales Mix: Organic (15%) Q3 Highlights: Continued customers’ destocking across Analytical Instrume
Slide 16: Fire & Safety / Diversified Products
Fire & Safety / Diversified Products (Dollars in millions) Orders Sales Adjusted EBITDA Margin* 2% Organic* 3% Organic* +150 bps* $181 29.3% $149 $155 $172 27.8% Q3'22 Q3'23 Q3'22 Q3'23 Q3'22 Q3'23 Q3 Highlights: Q3 Sales Mix: Organic 3% Dispensing outlook mixed on consumer caution on macro econom
Slide 17: Non-GAAP Reconciliations
Non-GAAP Reconciliations IDEX Proprietary & Confidential 17
Slide 18: Non-GAAP Measures of Financial Performance
Non-GAAP Measures of Financial Performance The Company prepares its public financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP). The Company supplements certain GAAP financial performance metrics with non-GAAP financial performance m
Slide 19: Table 2: Reconciliations of Reported-to-Adjusted Gross Profit, Net Sales and Gross Margin
Table 2: Reconciliations of Reported-to-Adjusted Gross Profit, Net Sales and Gross Margin (dollars in millions) Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Gross profit $ 349.6 $ 381.8 $ 1,110.1 $ 1,081.2 Impact from the exit of a COVID-19 testing application
Slide 20: Table 3: Reconciliations of Reported-to-Adjusted Net Income and Diluted EPS
Table 3: Reconciliations of Reported-to-Adjusted Net Income Attributable to IDEX and Diluted EPS Attributable to IDEX (in millions, other than per share amounts) (continued) Three Months Ended Nine Months Ended September 30, September 30, 2023 2022 2023 2022 Reported diluted EPS attributable to IDEX
Slide 21: Table 4: Reconciliations of Net Income to Adjusted EBITDA
Table 4: Reconciliations of Net Income to Adjusted EBITDA and Net Sales to Adjusted Net Sales (dollars in millions) Three Months Ended September 30, 2023 2022 FMT HST FSDP Corporate IDEX FMT HST FSDP Corporate IDEX Reported net income $ — $ — $ — $ — $ 209.0 $ — $ — $ — $ — $ 178.7 Provision for inc
Slide 22: Table 4: Reconciliations of Net Income to Adjusted EBITDA (continued)
Table 4: Reconciliations of Net Income to Adjusted EBITDA and Net Sales to Adjusted Net Sales (dollars in millions) (continued) Nine Months Ended September 30, 2023 2022 FMT HST FSDP Corporate IDEX FMT HST FSDP Corporate IDEX Reported net income $ — $ — $ — $ — $ 487.3 $ — $ — $ — $ — $ 456.7 Provis
Slide 23: Table 6: Reconciliation of Estimated 2023 Change in Net Sales to Organic Net Sales
Table 6: Reconciliation of Estimated 2023 Change in Net Sales to Change in Organic Net Sales Guidance Fourth Quarter 2023 Full Year 2023 Low End High End Low End High End Change in net sales (6%) (5%) 1% 2% Net impact from acquisitions/divestitures (2%) (2%) (4%) (4%) Impact from foreign currency (1
Slide 24: Table 8: Reconciliation of Estimated 2023 Net Income to Adjusted EBITDA
Table 8: Reconciliation of Estimated 2023 Net Income to Adjusted EBITDA (dollars in millions) Guidance Fourth Quarter 2023 Full Year 2023 Low End High End Low End High End Reported net income $ 113.4 $ 117.1 $ 600.7 $ 604.3 Provision for income taxes 32.7 33.6 165.3 166.2 Interest expense 11.6 11.6