Slide 1: IDEX Corporation Fourth Quarter 2008 Earnings Release
IDEX Corporation Fourth Quarter 2008 Earnings Release February 5, 2008
Slide 2: Agenda
Agenda Q4 and FY 2008 Summary Q408 Segment Performance Fluid & Metering Health & Science Dispensing Equipment Fire & Safety / Diversified 2009 Outlook Balance Sheet update Summary Q&A
Slide 3: Replay Information
Replay Information Dial toll-free: 888.203.1112 International: 719.457.0820 Conference ID: #1364347 Log on to: www.idexcorp.com
Slide 4: Cautionary Statement Under the Private Securities Litigation Reform Act
Cautionary Statement Under the Private Securities Litigation Reform Act This presentation and discussion will include forward-looking statements. Our actual performance may differ materially from that indicated or suggested by any such statements. There are a number of factors that could cause those
Slide 5: Q4 and FY 2008 Financial Performance
Q4 and FY 2008 Financial Performance Q408 Q407 Var 2008 2007 Var Orders $336 $346 (3)% $1,493 $1,364 9% Sales $355 $346 3% $1,489 $1,359 10% Adj. Op Margin* 15.1% 17.8% (270)bp 17.5% 18.8% (130)bp Adj. EBITDA* $69 $73 (6)% $314 $297 6% Adj. EPS* $.41 $.47 (13)% $1.98 $1.90 4% FCF $45 $55 (17)% $196
Slide 6: Fluid & Metering
Fluid & Metering *Op Margin excludes restructuring costs Outlook Near - term: End markets remain pressured Long - term: Strong end market content, geographic diversification, attractive acquisitions Economic pressure in the near-term; Well-positioned in the long-term (Continuing Operations) Q4 '08 Q
Slide 7: Health & Science
Health & Science *Op Margin excludes restructuring costs Outlook Near - term: Slow down in OEM demand Long - term: Resilient core end markets Resilient core analytical instrumentation, IVD and biotechnology markets Q4 '08 Q4 '07 Change Orders $76.8 $77.4 (1)% Sales Organic Acquisition Currency $77.8
Slide 8: Dispensing Equipment
Dispensing Equipment *Op Margin excludes restructuring costs Outlook Near - term: Lack of retail customer capital commitment Improved profitability from cost actions taken Mid - term: Equipment replenishment will drive revenue Continued Market Softness in North America and Europe Q4 '08 Q4 '07 Chang
Slide 9: Fire & Safety / Diversified Products
Fire & Safety / Diversified Products *Op Margin excludes restructuring costs Outlook Near - term: International growth in rescue tools, fire suppression stable, band clamping markets pressured Long - term: Continued global expansion for rescue tools, stable end markets for fire suppression and band
Slide 10: 2009 Outlook
2009 Outlook EPS estimate range: $1.50 - $1.80 Organic growth down 6 - 10% Fx headwind of 3% to sales (at current rates) Acquisitions add 5 - 7% to sales 16 cents of EPS benefit from restructuring ($20M) Other modeling items Tax rate = 34% Capex $25M 1.1x to 1.2x free cash conversion (to net income)
Slide 11: Balance Sheet Strength
Balance Sheet Strength Debt Structure Term Loan $100M Revolver (capacity = $600M) 450M Other 4M Total Debt $554M Strong balance sheet and cash flows Debt-to-Cap = 32% Leverage Ratio = 1.7 ~$150M of available capacity plus ~$60M cash on hand Deployed $50M in Q4 to repurchase 2.3M shares No financing
Slide 12: Summary
Summary Focus on "controllables" Continue to resource growth initiatives New product launches on track Market share gains via product and geographic expansion Integration of recent acquisitions Capturing material deflation Tight cost controls Restructuring completed - $20M benefit in 2009
Slide 13: Q&A
Q&A / 4+ ¢ CORPORATION 13