 Q2 2008 Earnings Call August 5, 2008 Exhibit 99.2 |
 1 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 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 Registration Statement on Form S-1 under the caption "Risk Factors" and other reports filed with the U.S. Securities and Exchange Commission. 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. |
 2 Q2 2008 Highlights Adjusted net income of $13.9 million (32 cents per share), an increase of 53.0% Net sales of $161.4 million, an increase of 31.9% (organic growth of 18.3%) Adjusted operating income of $23.6 million, an increase of 42.1% Adjusted EBITDA of $27.5 million, an increase of 32.5% Record second quarter orders of $188.8 million, an increase of 34.3% (organic growth of 18.8%) Record backlog of $384.0 million Well Positioned For Strong Performance in 2008 |
 3 YTD 2008 Highlights Adjusted net income of $24.0 million (55 cents per share), an increase of 43.9% Net sales of $292.1 million, an increase of 23.1% (organic growth of 10.5%) Adjusted operating income of $41.9 million, an increase of 33.8% Adjusted EBITDA of $49.5 million, an increase of 27.1% Orders of $369.1 million, an increase of 36.0% (organic growth of 21.4%) Well Positioned For Strong Performance in 2008 |
 4 Note: Dollars in millions. Historical Orders & Backlog $118.3 $179.3 $292.8 $224.7 $384.0 $0.0 $80.0 $160.0 $240.0 $320.0 $400.0 2005 2006 2007 - Q2 2007 Q2 2008 $140.6 $188.8 $271.4 $369.1 $0.0 $100.0 $200.0 $300.0 $400.0 Q2 2007 Q2 2008 YTD 2007 YTD 2008 Orders Orders Orders Backlog Backlog Backlog 18.8% Acquisitions 3.1% FX Translation 12.4% Total Growth -- -- -- -- 34.3% 21.4% 2.4% 12.2% 36.0% Existing Businesses -- -- -- -- Accelerating Order and Backlog Growth 47.8% 5.5% 17.6% 70.9% -- -- -- -- |
 5 $20.8 $27.5 $39.0 $49.5 $0.0 $20.0 $40.0 $60.0 Q2 2007 Q2 2008 - YTD 2007 YTD 2008 Financial Performance Overview Note: Dollars in millions. (1) Please refer to the Appendix for the Non-GAAP reconciliation. % Margin 17.0% 17.0% Adjusted EBITDA (1) Adjusted EBITDA Adjusted EBITDA (1) (1) Revenue Revenue Revenue $122.4 $161.4 $237.2 $292.1 $0.0 $100.0 $200.0 $300.0 Q2 2007 Q2 2008 - YTD 2007 YTD 2008 18.3% Acquisitions 0.8% FX Translation 12.7% Total Growth 31.9% -- -- -- Existing Businesses -- -- -- 16.4% 16.9% 10.5% 1.5% 11.2% 23.1% Consistent Track Record of Profitable Sales Growth |
 6 Q2 2008 Sales and Orders by End Market Q2 2008 Orders: $188.8 million Q2 2008 Orders: $188.8 million Q2 2008 Orders: $188.8 million Q2 2008 Sales: $161.4 million Q2 2008 Sales: $161.4 million Q2 2008 Sales: $161.4 million Well Positioned in Five Attractive and Diverse End Markets Commercial Marine 27% Oil & Gas 14% Power Generation 10% Navy 7% General Industrial 42% Commercial Marine 21% Oil & Gas 11% Power Generation 15% Navy 5% General Industrial 48% |
 7 YTD 2008 Sales and Orders by End Market YTD 2008 Orders: $369.1 million YTD 2008 Orders: $369.1 million YTD 2008 Orders: $369.1 million YTD 2008 Sales: $292.1 million YTD 2008 Sales: $292.1 million YTD 2008 Sales: $292.1 million Well Positioned in Five Attractive and Diverse End Markets Commercial Marine 31% Oil & Gas 11% Power Generation 11% Navy 7% General Industrial 40% Commercial Marine 23% Oil & Gas 10% Power Generation 13% Navy 5% General Industrial 49% |
 8 Commercial Marine Market Perspective Q2 2008 Year-Over-Year Results Orders up 22.7% year-over-year (6.3% organic growth) Sales up 31.4% year-over-year (13.6% organic growth) YTD 2008 Year-Over-Year Results Orders up 56.6% year-over-year (37.2% organic growth) Sales up 20.9% year-over-year (5.8% organic growth) Market Trends Growth in international trade and demand for bulk commodities and oil continuing to drive new ship construction Aging fleet, environmental regulations requiring ship owners to upgrade or replace ships Local presence required to effectively serve customers and capture aftermarket business Executing Strategies To Drive Profitable Sales Growth Colfax Q2 08 Orders Split 27% Comm. Marine Colfax Q2 08 Sales Split 21% Comm. Marine |
 9 Oil & Gas Market Perspective Strong Product Portfolio Capable of Solving Needs of Evolving Oil & Gas Market Colfax Q2 08 Orders Split 14% O&G Colfax Q2 08 Sales Split 11% O&G Q2 2008 Year-Over-Year Results Orders up 68.7% year-over-year (63.2% organic growth) Sales down 9.2% year-over-year (-5.3% organic growth) YTD 2008 Year-Over-Year Results Orders up 18.9% year-over-year (11.1% organic growth) Sales down 8.5% year-over-year (-14.7% organic growth) Market Trends Elevated oil prices and depleting supplies spurring heavy oil exploration, transport and processing Customers focusing more on “total cost of ownership” to reduce downtime and increase efficiency Application expertise critical to winning large project orders |
 10 Power Generation Market Perspective Leading Supplier of Lubrication Solutions to Power Generation OEMs Colfax Q2 08 Orders Split 10% Power Gen. Colfax Q2 08 Sales Split 15% Power Gen. Q2 2008 Year-Over-Year Results Orders up 45.9% year-over-year (31.5% organic growth) Sales up 80.5% year-over-year (61.0% organic growth) YTD 2008 Year-Over-Year Results Orders up 30.3% year-over-year (19.3% organic growth) Sales up 62.0% year-over-year (46.5% organic growth) Market Trends Robust economic growth in Asia and Middle East driving investment in energy infrastructure projects Aging power infrastructure in mature markets creating upgrade projects to increase efficiency and lower operating costs Multiple forms of power generation (gas, coal, hydro, nuclear) being employed to satisfy growing global demand |
 11 Global Navy Market Perspective Developing Innovative Fluid Handling Products and Systems to Drive Future Growth Colfax Q2 08 Orders Split 7% Navy Colfax Q2 08 Sales Split 5% Navy Q2 2008 Year-Over-Year Results Orders up 26.6% year-over-year (-15.0% organic growth) Sales down 4.8% year-over-year (-35.6% organic growth) YTD 2008 Year-Over-Year Results Orders up 53.5% year-over-year (20.4% organic growth) Sales down 17.0% year-over-year (-31.2% organic growth) Market Trends Sovereign navies around the world expanding fleets to address heightened national security level concerns Increased demand for integrated fluid handling systems and solutions to reduce operating costs |
 12 General Industrial Perspective Leading Supplier of Highly Engineered Fluid Handling Products and Systems with Global Reach Colfax Q2 08 Orders Split Colfax Q2 08 Sales Split 48% General Industrial Q2 2008 Year-Over-Year Results Orders up 32.2% year-over-year (19.5% organic growth) Sales up 39.7% year-over-year (25.7% organic growth) YTD 2008 Year-Over-Year Results Orders up 26.8% year-over-year (15.0% organic growth) Sales up 31.8% year-over-year (19.2% organic growth) Market Trends Global economic development driving increased capital investment Developing regions embracing engineered products and solutions that reduce costs and increase efficiency Global footprint and channel optimization required to cover broad end market applications 42% General Industrial |
 13 Note: Dollars in millions. Income Statement Summary Three Months Ended Delta 6/27/2008 6/29/2007 $ % Orders $188.8 $140.6 $48.2 34.3% Sales $161.4 $122.4 $39.0 31.9% Gross Profit $56.8 $43.0 $13.8 32.1% % of Sales 35.2% 35.1% SG&A Expense $31.6 $25.4 $6.2 24.4% R&D Expense $1.6 $1.0 $0.6 60.0% Operating Expenses $33.2 $26.4 $6.8 25.8% % of Sales 20.6% 21.6% Adjusted Operating Income $23.6 $16.6 $7.0 42.1% % of Sales 14.6% 13.5% Adjusted EBITDA $27.5 $20.8 $6.7 32.5% % of Sales 17.0% 17.0% Adjusted Net Income $13.9 $9.1 $4.8 53.0% % of Sales 8.6% 7.4% (1) (1) Excludes a $4.1 million charge related to a non-asbestos product liability case |
 14 Note: Dollars in millions. Income Statement Summary Six Months Ended Delta 6/27/2008 6/29/2007 $ % Orders $369.1 $271.4 $97.7 36.0% Sales $292.1 $237.2 $54.9 23.1% Gross Profit $105.0 $81.9 $23.1 28.2% % of Sales 35.9% 34.5% SG&A Expense $60.2 $48.5 $11.7 24.1% R&D Expense $3.0 $2.1 $0.9 42.9% Operating Expenses $63.2 $50.6 $12.5 24.9% % of Sales 21.6% 21.3% Adjusted Operating Income $41.9 $31.3 $10.6 33.8% % of Sales 14.3% 13.2% Adjusted EBITDA $49.5 $39.0 $10.5 27.1% % of Sales 16.9% 16.4% Adjusted Net Income $24.0 $16.7 $7.3 43.9% % of Sales 8.2% 7.0% (1) (1) Excludes a $4.1 million charge related to a non-asbestos product liability case |
 15 Note: Dollars in millions. Statement of Cash Flows Summary Six Months Ended 6/27/2008 6/29/2007 Net Income ($24.6) $10.9 Non-Cash Expenses 23.2 8.5 Change in Working Capital and Accrued Liabilities (32.8) (0.2) Other (22.8) (9.8) Total Operating Activities ($57.0) $9.4 Capital Expenditures ($9.1) ($5.6) Acquisitions (28.5) Other - Total Investing Activities ($9.0) ($34.1) Net Borrowings ($106.5) $26.4 Proceeds from IPO, Net of Offering Costs 193.0 Dividends Paid (38.5) Other (3.1) (0.4) Total Financing Activities $44.9 $26.0 Effect of Exchange Rates on Cash 0.1 (0.7) Increase (Decrease in Cash) (21.0) 0.5 Cash Beginning of Period 48.1 7.6 Cash End of Period $27.1 $8.1 - - - - |
 16 21.6 million shares sold (11.9 million primary / 9.7 million secondary) 44.0 million shares outstanding post offering Primarily to repay a portion of existing debt, effective redemption of preferred stock through conversion and sale of common, pay dividends and general corporate purposes IPO Summary Shares Sold Use of Proceeds $18.00 per share IPO Price Began trading May 8, 2008 Completed offering May 13, 2008 Date $193.0 million Net Proceeds |
 17 Well Positioned for the Future CBS-Driven Culture Focused on Profitable Sales Growth Experienced Management Team in Place to Grow Organically and Through Strategic Acquisitions Leading Brand Names Generating Aftermarket Sales and Services Serving Fast Growing Infrastructure Driven End Markets Proven Application Expertise in Solving Critical Customer Needs Global Leader in Specialty Fluid Handling Products |
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 20 Note: Dollars in thousands. Non-GAAP Reconciliation June 27, June 29, June 27, June 29, 2008 2007 2008 2007 EBITDA Net (loss) income (31,399) $ 4,841 $ (24,601) $ 10,879 $ Interest expense 3,236 4,458 7,733 9,216 (Benefit) provision for income taxes (12,679) 3,049 (9,101) 6,999 Depreciation and amortization 3,955 4,185 7,650 7,683 EBITDA (36,887) $ 16,533 $ (18,319) $ 34,777 $ EBITDA margin -22.9% 13.5% -6.3% 14.7% Adjusted EBITDA Net (loss) income (31,399) $ 4,841 $ (24,601) $ 10,879 $ Interest expense 3,236 4,458 7,733 9,216 (Benefit) provision for income taxes (12,679) 3,049 (9,101) 6,999 Depreciation and amortization 3,955 4,185 7,650 7,683 Initial public offering related costs 57,017 57,017 Legacy legal adjustment 4,131 - 4,131 - Asbestos liability and defense (income) costs (715) 558 (437) (1,747) Asbestos coverage litigation expense 3,970 3,678 7,109 5,931 Adjusted EBITDA 27,516 $ 20,769 $ 49,501 $ 38,961 $ Adjusted EBITDA margin 17.0% 17.0% 16.9% 16.4% Three Months Ended Six Months Ended - - |
 21 Note: Dollars in thousands, except per share data. Non-GAAP Reconciliation June 27, June 29, June 27, June 29, 2008 2007 2008 2007 Three Months Ended Six Months Ended Adjusted Net Income and Adjusted Earnings per Share Net (loss) income (31,399) $ 4,841 $ (24,601) $ 10,879 $ Initial public offering related costs 57,017 - 57,017 - Legacy legal adjustment 4,131 - 4,131 - Asbestos liability and defense (income) costs (715) 558 (437) (1,747) Asbestos coverage litigation expense 3,970 3,678 7,109 5,931 Interest adjustment to effect IPO at beginning of period 725 1,636 2,302 3,250 Tax adjustment to 34% effective rate (19,836) (1,630) (21,484) (1,607) Adjusted net income 13,893 $ 9,083 $ 24,037 $ 16,706 $ Adjusted net income margin 8.6% 7.4% 8.2% 7.0% Shares outstanding at closing of IPO 44,006,026 44,006,026 44,006,026 44,006,026 Adjusted net income per share - basic 0.32 $ 0.21 $ 0.55 $ 0.38 $ Net (loss) income per share-basic and diluted in accordance with GAAP (1.01) $ 0.22 $ (0.99) $ 0.50 $ Adjusted Operating Income Operating (loss) income (40,842) $ 12,348 $ (25,969) $ 27,094 $ Initial public offering related costs 57,017 - 57,017 Legacy legal adjustment 4,131 - 4,131 - Asbestos liability and defense (income) costs (715) 558 (437) (1,747) Asbestos coverage litigation expense 3,970 3,678 7,109 5,931 Adjusted operating income 23,561 $ 16,584 $ 41,851 $ 31,278 $ Adjusted operating income margin 14.6% 13.5% 14.3% 13.2% - |
 22 Note: Dollars in millions. Non-GAAP Reconciliation $ % $ % Three Months Ended June 29, 2007 122.4 $ 140.6 $ Components of Growth: Organic Growth of Existing Businesses 22.4 18.3% 26.5 18.8% Acquisitions 1.0 0.8% 4.3 3.1% Foreign Currency Translation 15.6 12.7% 17.4 12.4% Total Growth 39.0 31.9% 48.2 34.3% Three Months Ended June 27, 2008 161.4 $ 188.8 $ $ % $ % Six Months Ended June 29, 2007 237.2 $ 271.4 $ Components of Growth: Organic Growth of Existing Businesses 24.8 10.5% 58.1 21.4% Acquisitions 3.5 1.5% 6.4 2.4% Foreign Currency Translation 26.6 11.2% 33.2 12.2% Total Growth 54.9 23.1% 97.7 36.0% Six Months Ended June 27, 2008 292.1 $ 369.1 $ Sales Orders Sales Orders |