Third Quarter Earnings OCTOBER 21, 2014
AGENDA IDEX’s Outlook Q3 2014 Financial Performance Q3 2014 Segment Performance • Fluid & Metering • Health & Science • Fire & Safety / Diversified Guidance Update Q&A 1
REPLAY INFORMATION Dial toll–free: 877.660.6853 International: 201.612.7415 Conference ID: #13589617 Log on to: www.idexcorp.com 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. 3
Revenue Organic: 7% increase 100 bps expansion EPS Operating Margin Free Cash Flow Organic sales growth and margin expansion delivers 13 percent EPS growth 13% increase 19% decrease IDEX Q3 Financial Performance 4 $0 $200 $400 $600 Q3 $491 $533 2013 2014 $0.00 $0.50 $1.00 Q3 $0.78 $0.88 2013 2014 15.0% 20.0% 25.0% Q3 19.8% 20.8% 2013 2014 $0 $40 $80 $120 Q3 $113 $92 2013 2014
Orders Revenue Q3 Revenue Mix: Organic 4% Acquisition 1% Fx 0% Total 5% Q3 Summary: Solid sales growth provides confidence that our core end-markets are stable, and that we are well positioned going forward Water Services sales growth driven by share gain from the successful introduction of new products Agriculture market remains soft, but we are positioned to take advantage of aftermarket agriculture opportunities and growth in industrial markets Energy and Chemical in the European and Middle East markets remains volatile, offset by strength in North America 10 bps expansion Operating Margin Organic: 1% decrease Organic: 4% increase Fluid & Metering 5 Solid revenue growth in specific end markets and regions $0 $50 $100 $150 $200 $250 Q3 $217 $220 2013 2014 $0 $50 $100 $150 $200 $250 Q3 $212 $223 2013 2014 15.0% 20.0% 25.0% 30.0% Q3 24.4% 24.5% 2013 2014
Health & Science Orders Revenue Operating Margin Q3 Revenue Mix: Organic 5% Acquisition 0% Fx 2% Total 7% Q3 Summary: MPT sales and profit grew significantly in Q3 MPT orders declined in Q3 due to difficult prior-year comparison and project- based business Industrial business order and sales growth driven by strength in core North American distribution markets and new market opportunities Scientific Fluidics saw market conditions similar to Q2, but early Q4 orders are trending positive Organic: 2% decrease Organic: 5% increase 150 bps expansion 6 Organic revenue growth continues with highest operating margin since Q1 2011 $0 $50 $100 $150 $200 Q3 $174 $174 2013 2014 $0 $ 0 $100 $150 $200 Q3 $179 $191 2013 2014 10.0% 15.0% 20.0% 25.0% Q3 20.6% 22.1% 2013 2014
Orders Revenue 420 bps expansion Organic: 20% decrease Operating Margin Q3 Revenue Mix: Organic 18% Acquisition 0% Fx 1% Total 19% Q3 Summary: Orders decreased primarily due to large Dispensing order in prior year Band-It continues to grow orders and sales in nearly all end-markets, with a continued positive outlook for the remainder of 2014 Dispensing sales growth realized from core North American and Western European markets, with excellent profitability improvements Rescue had solid profitability, but orders were soft from delayed municipal spending in Europe and Asia Organic: 18% increase Fire & Safety Diversified 7 Exceptional operating margin improvement from volume leverage and productivity gains $0 $50 $100 $150 Q3 $141 $114 2013 2014 $0 $50 $100 $150 Q3 $101 $120 2013 2014 15.0% 20.0% 25.0% 30.0% Q3 21.9% 26.1% 2013 2014
Q4 2014 EPS estimate range: $0.85 – $0.88 Operating margin: ~ 20% Tax rate: ~ 28.5% (assumes passage of US R&D tax credit) Fx impact: ~2% headwind FY 2014 EPS estimate range: $3.52 – $3.55 Organic revenue growth: ~ 5% – 6% Operating margin: > 20% Fx impact is immaterial Other modeling items • Tax rate: ~ 29.0% • Cap Ex: ~ $48M – $52M • Free Cash Flow will be ~120% of net income • Continued share repurchases: ~ net 2% reduction • EPS estimate excludes future acquisitions and associated costs and charges, and fourth quarter cost actions 8 Outlook: 2014 Guidance Summary
Q&A 9