IDEX CORPORATION. BAIRD 2008 Industrial Conference

Transcription

1 IDEX CORPORATION BAIRD 2008 Industrial Conference November 11, 2008

2 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 differences, including those presented in our most recent annual report and other company filings with the SEC. 2

3 Move and Measure IDEX Core Competencies Dose and Dispense Sample Preparation Niche Mechanical Technology Niche Market Technology Leader 3

4 IDEX Business Model Operational Excellence Strong cash flow generation Focus on attractive end markets Strategic acquisitions Matched Components Red Ocean Initiative Blue Ocean Initiative Acquisition Opp. Share Key <5% 5-20% 20%+ Growth Focused 4

5 IDEX Update Actions completed Restructuring Initiatives $17M cost take-out Recent Acquisitions ($130M revenue) $33M EBITDA $50M EBITDA Balance sheet Proforma metrics (post-recent acquisitions) Leverage Ratio = 1.4 Debt to Capitalization = 28% Over $200M of free cash flow generation in 2008 Over $200M of existing revolver capacity available Majority of debt swapped into fixed rates less than 3.5% through Dec 2011 Capital Priorities Acquisitions (FMT and HST) Share buyback (Opportunistically using FCF) Great Balance Sheet with Opportunity to Grow 5

6 Long View of IDEX What we ve done since 2006 Acquisitions Capital Deployed FMT Water/Wastewater $235M FMT Refined Fuels & Gases $80M FMT Agriculture/Chemicals $280M HST Core AI, IVD, Bio $205M $800M ($100M+ EBITDA) What we ll do in next 3 years $1B Deployment of Capital EBITDA New Acquisitions ~$150M (6-7x EBITDA) 2008 Restructuring/Acquisitions $50M EBITDA growth from existing ops???? ~$200M 2008 EBITDA ~$315M $500M+ 3 year EBITDA CAGR of over 15% Still Capable of Double Digit EBITDA Growth Despite Uncertain Economy 6

7 IDEX Revenue SEGMENT REVENUE* GEOGRAPHY* Fire & Safety / Diversified Products 19% Dispensing Equipment 10% Health & Science Technology 22% Fluid & Metering Technologies 49% Asia 11% Europe 30% Other 9% US 50% *Assumes full year impact of 2008 acquisitions 7

8 Fluid & Metering Technologies Precision Fluid-Handling of High-Value Liquids and Gases Current Market Outlook Water / Wastewater business driven by enforcement of regulations Refined Fuels & Gases business growing internationally Chemical businesses stable, but slowing 2008 Acquisitions ADS, IETG and ipek Water/Wastewater market Richter Chemical processing market FMT MARKETS SERVED Sanitary 10% Industrial Automation / Specialty Machinery 10% Agriculture 7% Other Applied Solutions 4% Water/WW 25% Refined Fuels & Gases 22% Chemical Processing 22% International Revenue: 50% 8

9 Acquisition: Richter - Located in Kempen, Germany Annual revenues of approximately$53 million Magnetically Coupled pumps Expected to be accretive to 2009 earnings Technology leader and supplier of corrosion resistant pumps, valves and control equipment serving the process markets Growth drivers: More stringent safety and environmental standards and emerging economy installations Enhances IDEX s presence in the world wide infrastructure expansion of specialty process applications Specialty Valves Predictive Failure Controls 9

10 Located in Hirschegg, Austria Acquisition: ipek Annual revenues of approximately $26 million Expected to be accretive to 2009 earnings Remote controlled systems focused on infrastructure analysis, specifically waste water collection systems Growth drivers: Global fresh water shortages and the need for waste water management Increasing regulatory requirements Deteriorating infrastructure Leak detection Flow monitoring services Data collection and diagnostics Remote Controlled Analysis Data Collection Build out in the Water and Waste Water segment 10

11 Located in Leeds, UK Acquisition: Integrated Environmental Technology Group Annual revenues of approximately $25 million Expected to be accretive to 2009 earnings Leading provider of flow monitoring and underground utility surveillance services for the water and wastewater markets Growth drivers: Aging infrastructure in the UK and Europe require investment to optimize efficiency and maintain system integrity Leak detection Flow monitoring services Data collection and diagnostics Increasing regulatory requirements Extends IDEX s waste water capability and footprint, particularly in the UK Clean Water Services Waste Water Monitoring Data Collection Services 11

12 Health & Science Technologies Precise Fluid-Handling and Specialty Materials Capability Current Market Outlook Analytical Instruments, IVD and Biotech markets continue to see stable growth Integrated Solutions Group winning new platforms enabling market share gains Printing and Machinery markets have softened Machinery / OEM 21% HST MARKETS SERVED Other Applied Solutions 11% Analytical Instruments 34% 2008 Acquisition Semrock Analytical Instruments, IVD and Biotechnology markets Semiconductor / Electronics 6% Medical / Dental 7% Printing 4% IVD / Biotechnology 17% International Revenue: 40% 12

13 Acquisition: Semrock Located in Rochester, NY Annual revenues of approximately $20 million Expected to be accretive to 2009 earnings Leading manufacturer and supplier of optical filters for the life science (IVD and Biotech), mass spectrometry and molecular spectroscopy markets Growth drivers: Growing demand for fluorescence based applications Push to use smaller sample sizes requiring greater instruments with greater detection sensitivity Imaging techniques entering adjacent markets Extends IDEX s capabilities in the Life science and clinical equipment markets 13

14 Dispensing Equipment World Leader in Custom Color Formulation Equipment Current Market Outlook North American and European markets have softened significantly Retail sales and credit concerns are slowing orders IDEX has taken significant costs out of the segment to maintain acceptable margins DISPENSING MARKETS SERVED Hardware 13% Do It Yourself 18% Parts 9% Mass Markets 3% Manufacturer Company Outlets 57% International Revenue: 65% 14

15 Fire & Safety/Diversified Products World Leader in Fire Suppression and Rescue Tools Current Market Outlook Rescue tools business is strong in international/emerging markets 65% international BAND IT business has grown market share by diversifying into new markets 40% international Fire Suppression market has stabilized at historically low levels 25% international Engineered Band Clamping Systems 28% FIRE & SAFETY / DIVERSIFIED MARKETS SERVED Rescue Tools 39% Fire Suppression 33% International Revenue: 50% 15

16 IDEX Summary End markets are uncertain in the near term Cost actions have been taken to mitigate earnings risk Recent acquisitions fit well and will be accretive in 2009 Balance sheet is in great shape Bullish about ability to deploy capital on strategic acquisitions 16