Exhibit 99.1
KeyBanc Capital Markets
Industrial, Automotive and Transportation Conference
June 2, 2010
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 plans, objectives,
expectations and intentions and other statements that are not historical or current facts. Forward-
looking statements are based on Colfax's current expectations and involve risks and uncertainties that
could cause actual results to differ materially from those expressed or implied in such forward-looking
statements. Factors that could cause Colfax's results to differ materially from current expectations
include, but are not limited to factors detailed in Colfax's reports filed with the U.S. Securities and
Exchange Commission as well as its Annual Report on Form 10-K under the caption “Risk Factors”. In
addition, these statements are based on a number of assumptions that are subject to change. This
presentation speaks only as of this date. Colfax disclaims any duty to update the information herein.
Forward-Looking Statements
1
Delivering solutions for critical applications
Company Overview
Global leader in specialty fluid-handling pumps,
valves and systems
Global reach
Strong brands
Application engineering expertise
Growth through organic initiatives and acquisitions; ultimately multi-platform
Colfax Business System
Diverse end markets
Global
Defense
Oil & Gas
Power
Generation
General
Industrial
Commercial
Marine
2
34%
26%
17%
14%
9%
24%
44%
7%
18%
5%
2%
2009 Revenues ($525M) By End Markets
2009 Revenues ($525M) By Geography (1)
End Market and Geographic Diversity
(1) Revenues based on our shipping destination.
Large and diverse customer base and end markets; no customer more than 4% of sales in 2009
Blue Chip Customers
3
Strategy – Fluid Handling
Differentiation through responsive VOC-aligned SMART solutions and
services for the most critical fluid-handling applications
4
Strategic Priorities
Drive operational improvement breakthroughs in EMEAA
Realign into a global functional organizational structure
Utilize Voice of the Customer process to drive differentiated product development
Intensify focus on growth in Asia
Leveraging our strengths and values to deliver best-of-class results
5
Completed 13 acquisitions since 1995
Continue to Pursue Strategic Acquisitions
Acquisition Criteria:
Strong brand name recognition
Leading market position
Global reach and manufacturing
Differentiated product technology / highly engineered product solutions
Complementary end market / geographic focus
Attain double digit return on investment in the 3rd year
6
Intensify Application of CBS
Align with the customer
Think and act breakthrough
Drive immersion
Execute a unified PD (Policy Deployment)
Execute point-of-impact action plans
Continuous improvement
CBS – People, Planning, Process & Performance
7
Oil & Gas Market
Applications: Crude oil gathering; pipeline services; unloading and
loading; rotating equipment lubrication; lube oil purification
Market Trends
Long-term demand for oil projected to increase especially in developing
countries
Heavy and highly viscous oil to account for increasing share of
production
Stable oil prices supporting activity
New orders beginning to book
Our Strategy
Capitalize on growth in heavy oil exploration and transport
Middle East
Asia Pacific
Latin America
Expand served market with larger pumps and SMART system
technology
Provide lowest total cost of ownership solutions that reduce downtime
and improve energy efficiency
8
Global Defense
Applications: Fuel oil transfer; oil transport; water and wastewater
handling; firefighting; fluid control
Market Trends
Recent growth in Navy funding
Focus on automation – less manpower, cost reductions, increased
efficiency
Modernization and expansion of ROW navies
Our Strategy
Leverage SMART technology
Expand service network
Support expansion of fleets outside of U.S. including Europe and India
9
General Industrial
Applications: Machinery lubrication; hydraulic elevators; chemical
processing; pulp and paper processing; food and beverage processing
Market Trends
Demand driven by capital investment long-term
General industrial strengthening in Asia, Europe and U.S.; three
consecutive quarters of order growth
Developing regions embracing engineered products and solutions that
reduce costs and increase efficiency
Our Strategy
Continue to expand and diversify customer base
Develop VOC-based solutions that improve efficiency
(1)
(1)
Includes Distribution (9%), Chemical Processing (5%), Machinery Support (3%), Building Products (3%), Wastewater (2%), Heat Transfer (1%), Pulp and Paper (1%), Diesel
Engines (1%), Food & Beverage (1%) and Other (8%).
10
Commercial Marine
Applications: Fuel oil transfer; oil transport; water and wastewater
handling
Market Trends
International trade and demand for bulk commodities and oil to drive
new ship construction long-term
Aging fleet and environmental regulations requiring ship owners to
upgrade or replace ships
Approximately 10,000 ships on order while industry has excess
capacity
Cancellations and delivery extensions continuing
Our Strategy
Improve OTD and responsiveness to best-of-class
Grow aftermarket sales and service
Capitalize on growth in installed base
Leverage acquisition of PD Technik
Focus on opportunities related to changing environmental regulations
11
Power Generation
Applications: Fuel unloading, transfer, burner and injection; rotating
equipment lubrication
Market Trends
Worldwide demand for electricity is expected to double by 2030
Majority of growth in developing countries
Our Strategy
Grow China, India and Middle East
Participate in efficiency improvements in mature markets
12
Strong balance sheet(1)
Debt of $90 million, principal payments of $9 million in 2010, matures in 2013
Cash = $60 million
$136 million available on revolver
Strong cash flow
LTM ended 4/2/10 Adjusted EBITDA of $74 million
Inventory reduction of $4 million in 1Q 2010
Capital priorities
Acquisitions
Growth initiatives
Strong Financial Condition
(1) As of 4/2/2010
13
Financial Performance Overview – 2006-2009
Revenue
(1) Refer to Appendix for Non-GAAP reconciliation. Note: Dollars in millions.
Orders
Backlog
% Margin
13.4%
14.4%
15.0%
12.6%
Adjusted Operating Income (1)
Total Growth (Decline)
19.5%
(13.2)%
Existing Businesses
28.6%
13.9%
(8.1)%
Acquisitions
1.1%
0.2%
FX Translation
4.5%
(5.3)%
--
--
--
13.5%
8.0%
7.1%
14
Financial Performance Overview – Current Quarter
0.4%
--
Acquisitions
(12.0)%
--
Total Growth (Decline)
4.7%
--
FX Translation
(17.1)%
--
Existing Businesses
Revenue
(1) Refer to Appendix for Non-GAAP reconciliation. Note: Dollars in millions.
Orders
Backlog
Adjusted Operating Income (1)
8.5%
12.5%
% Margin
0.7%
--
Acquisitions
(2.9)%
--
Total Growth (Decline)
4.6%
--
FX Translation
(8.2)%
--
Existing Businesses
15
2010 Outlook Summary
$500 million
To
$480 million
2010 Total
(9)%
To
(5)%
2010 Organic growth (decline) (1)
Revenue Range
$0.77
To
$0.67
2010 Adjusted net income per share (2)
$0.45
To
$0.35
2010 Net income per share
EPS Range
(1) Excludes impact of acquisitions and foreign exchange rate fluctuations
(2) Excludes impact of asbestos coverage litigation, asbestos liability and defense costs, and restructuring and other related charges
(3) Spot rate as of 4/1/10; spot rate as of 5/28/10 was $1.23 which would result in a negative impact of approximately 3 cents.
Typically, a 5 cent change in the Euro is expected to result in a 1 cent change in EPS assuming all other currencies remain constant.
(See Appendix for Non-GAAP reconciliation)
43.3 million
Outstanding shares
$6 million
Interest expense
32%
Tax rate
$1.35
Euro(3)
$4 million
Asbestos liability and defense costs
$9 million
Asbestos coverage litigation
Assumptions
16
Aligning Assets and Resources to
Drive Best-of-Class Results
Strong financial condition
CBS – solid institutional knowledge
Experienced team
Large installed base
Business unit structure
Application engineering expertise
Global reach & diverse end markets
Strong brands & broad product portfolio
Improve balance sheet with CBS tools
Intensify application
Realign, develop, recruit
Enhance aftermarket capabilities
Transition to global organization
Develop VOC-based differentiated
solutions
Evaluate footprint, localize sales &
marketing, focus on developing markets
Expand offerings, leverage SMART
technology, improve OTD
Current State
Building for the Future
17
Strong portfolio of brands, products, and solutions
Diverse end markets and geographies
Strong balance sheet to fund organic growth initiatives and acquisitions
Global sourcing opportunities
Commitment to build the best team
CBS intensity and potential
Our values
Investment Highlights
Getting aligned to drive profitable growth
18
Appendix
19
Colfax has provided financial information that has not been prepared in accordance with GAAP. These non-GAAP financial measures
are projected adjusted net income per share, adjusted operating income, EBITDA and adjusted EBITDA. Adjusted operating income
and adjusted EBITDA exclude asbestos liability and defense costs and asbestos coverage litigation expenses, certain due diligence
costs, certain legacy legal charges, other post-employment benefit settlement, restructuring and other related charges as well as
one time initial public offering-related costs to the extent they impact the periods presented. Projected adjusted net income per
share excludes actual and estimated restructuring and other related charges, asbestos coverage litigation expenses and asbestos
liability and defense costs. Projected adjusted net income per share presents income taxes at an effective tax rate of 32%.
These non-GAAP financial measures assist Colfax in comparing its operating performance on a consistent basis because, among other
things, they remove the impact of non-recurring items, legacy asbestos issues and items outside the control of its operating
management team (except in the case of EBITDA).
Sales and order information by end market are estimates. We periodically update our customer groupings in order to refine these
estimates.
Disclaimer
20
Non-GAAP Reconciliation
21
Projected net income per share - diluted
$ 0.35
$ 0.45
Restructuring and other related charges incurred year-to-date
0.06
0.06
Estimated restructuring and other related charges
1
0.06
0.06
Asbestos coverage litigation expenses
0.14
0.14
Asbestos liability and defense costs
0.06
0.06
Projected adjusted net income per share - diluted
$ 0.67
$ 0.77
1
EPS Range
Colfax Corporation
Reconciliation of Projected 2010 Net Income Per Share to Adjusted Net Income Per Share
Amounts in Dollars
(Unaudited)
Represents estimated restructuring and other related charges for actions implemented through April
30, 2010.
____________________
Note: Dollars in thousands.
Non-GAAP Reconciliation
22
2009
2008
2007
2006
Adjusted Operating Income
Operating income
38,459
$
16,689
$
123,275
$
19,543
$
Restructuring and other related charges
18,175
-
-
-
Asbestos liability and defense (income) costs
(2,193)
(4,771)
(63,978)
21,783
Asbestos coverage litigation expenses
11,742
17,162
13,632
12,033
IPO-related costs
-
57,017
-
-
Legacy legal adjustment
-
4,131
-
8,330
Due diligence costs
-
582
-
-
Other post-employment benefit settlement
-
-
-
(9,102)
Adjusted operating income
66,183
$
90,810
$
72,929
$
52,587
$
Adjusted operating income margin
12.6%
15.0%
14.4%
13.4%
Non-GAAP Reconciliation
23
____________________
Note: Dollars in thousands.
April 2, 2010
April 3, 2009
Adjusted Operating Income
Operating income
893
$
11,810
$
Restructuring and other related charges
4,039
661
Asbestos liability and defense costs
1,435
1,645
Asbestos coverage litigation expenses
3,881
2,966
Adjusted operating income
10,248
$
17,082
$
Adjusted operating income margin
8.5%
12.5%
Three Months Ended
Non-GAAP Reconciliation
24
____________________
Note: Dollars in thousands.
Last Twelve Months
April 2, 2010
EBITDA
Net income
14,208
$
Interest expense
7,179
Provision for income taxes
6,155
Depreciation and amortization
14,788
EBITDA
42,330
$
EBITDA margin
8.3%
Adjusted EBITDA
Net income
14,208
$
Interest expense
7,179
Provision for income taxes
6,155
Depreciation and amortization
14,788
Restructuring and other related charges
21,553
Asbestos liability and defense costs (income)
(2,403)
Asbestos coverage litigation expenses
12,657
Adjusted EBITDA
74,137
$
Adjusted EBITDA margin
14.6%