Second Quarter Earnings JULY 23, 2015
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries • IDEX’s Outlook • Q2 2015 Financial Performance • Q2 2015 Segment Performance • Fluid & Metering • Health & Science • Fire & Safety / Diversified Products • Guidance Update • Q&A 1 AGENDA
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries • Dial toll–free: 877.660.6853 • International: 201.612.7415 • Conference ID: #13598713 • Log on to: www.idexcorp.com 2 Replay Information
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries 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
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries 4 IDEX Q2 Financial Performance Sales EPS Operating Margin Free Cash Flow $0 $200 $400 $600 Q2 $547 $515 2014 2015 $0.00 $0.50 $1.00 Q2 $0.88 $0.89 2014 2015 15.0% 17.0% 19.0% 21.0% 23.0% Q2 20.5% 21.3% 2014 2015 $0 $50 $100 Q2 $80 $86 2014 2015 Organic: 2% decrease 80 bps increase 1% increase 7% increase Operating Margin increased 80 bps and FCF was 124 percent of net income
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries 5 Fluid & Metering Orders Sales Q2 Sales Mix: Organic -2% Acquisition 1% Fx -4% Reported Sales -5% Q2 Summary: Water Services sales growth in the first half of 2015 expected to continue as municipal spending increases in the US and UK Industrial project wins in Europe offset mid-quarter softness in North America, with order momentum growing in all geographies at quarter-end Energy’s mid and upstream North American business continued to lag, while European large project orders improved in the second quarter Agriculture OEM market not expected to rebound in 2015 Operating Margin $0 $100 $200 $300 Q2 $233 $219 2014 2015 20.0% 22.0% 24.0% 26.0% Q2 24.6% 24.1% 2014 2015 Organic: 3% decrease $0 $100 $200 $300 Q2 $226 $215 2014 2015 Organic: 2% decrease 50 bps decrease End market conditions remain largely unchanged from first quarter 2015
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries 6 Health & Science Orders Sales Operating Margin $0 $50 $100 $150 $200 Q2 $194 $180 2014 2015 18.0% 20.0% 22.0% 24.0% Q2 19.5% 22.3% 2014 2015 Organic: 4% decrease $0 $50 $100 $150 $200 Q2 $186 $188 2014 2015 Organic: 4% increase 280 bps increase Sales up 4 percent organically, Operating Margin up 280 bps Q2 Sales Mix: Organic 4% Acquisition 2% Fx -4% Reported Sales 2% Q2 Summary: Scientific Fluidics end markets expanded for second straight quarter, and acquisition of CiDRA Precision Services will enhance microfluidics capabilities Sealing Solutions organic order and sales growth driven by semicon market, and Novotema acquisition will expand our presence in global sealing market IOP continues to deliver solid profitability improvements MPT order and sales growth in Q2 upheld by solid aftermarket business, but long-cycle Capex orders continue to lag
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries 7 Fire & Safety / Diversified Orders Sales Operating Margin $0 $50 $100 $150 Q2 $125 $106 2014 2015 25.0% 26.0% 27.0% 28.0% 29.0% Q2 26.4% 28.1% 2014 2015 Organic: 7% decrease $0 $50 $100 $150 Q2 $136 $112 2014 2015 Organic: 11% decrease 170 bps increase Operating Margin up 170 bps Q2 Sales Mix: Organic -11% Acquisition 0% Fx -7% Reported Sales -18% Q2 Summary: Dispensing delivered excellent operating margin expansion, and markets remain strong across all geographies Rescue saw pockets of European growth, while political difficulties continued to delay sales into China Fire Suppression core pump markets remain solid in the US and UK Band-It sales in transportation market is strong, while sales into oil & gas remain challenged
Brand names shown in this presentation are registered trademarks of IDEX Corporation and/or its subsidiaries Q3 2015 EPS estimate range: $0.88 – $0.90 Operating margin: ~ 21% Tax rate: ~ 29.0 -- 29.5% Fx impact: ~5% topline headwind, or ~5 cents of EPS based on current Fx rates FY 2015 EPS estimate range: $3.50 – $3.60 Organic revenue growth: ~ Flat Operating margin: ~ 21% Fx impact: ~4% topline headwind, or ~20 cents of EPS based on current Fx rates Other modeling items • Tax rate: ~ 29% • Cap Ex: ~ $45M • Free Cash Flow will be ~120% of net income • Continued share repurchases: ~ net 2% reduction • EPS estimate excludes all future acquisitions and associated costs and charges and the cost associated with 2nd half restructuring actions 8 Outlook: 2015 Guidance Summary