![]() Third Quarter 2012 Earnings Release October 23, 2012 Exhibit 99.1 |
![]() Agenda 2 • Strategic Plan Summary (2013 – 2015) • Capital Allocation • Q3 2012 Summary • 2012 Segment Performance Fluid & Metering Health & Science Fire & Safety / Diversified • 2012 Guidance Update • Q&A |
![]() IDEX Proprietary & Confidential Replay Information Dial toll–free: 855.859.2056 International: 404.537.3406 Conference ID: #40918415 Log on to: www.idexcorp.com 3 |
![]() IDEX Proprietary & Confidential 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. 4 |
![]() IDEX Proprietary & Confidential 1. Focus on accelerating organic growth close to the core – Platform Strategy – Better alignment to end markets and regions with GDP+ growth – Invest in Business Development and Product Management teams & NPD 2. Improve execution around core customers & products – Drive OTD, lead-time, cost and quality improvements – Reduce complexity through business segmentation and simplification 3. Improve capital deployment – Strategic M&A (to bolster our Platform growth strategies) – Share repurchases when advantageous Strategic Plan Summary (2013 – 2015) 5 Consistently deliver double digit earnings growth, exceptional cash conversion and superior return on invested capital. Objective Strategy To build global platforms and defensible niches in attractive, highly engineered markets where we can create a leadership position and successfully apply the IDEX Operating Model. |
![]() IDEX Proprietary & Confidential • M&A market presents attractive growth and ROIC for assets that fulfill IDEX’s strategic priorities Capital Allocation 6 • IDEX balance sheet and strong cash generation enables strong & consistent total shareholder returns • Over $1.5B to allocate over the next 3 years – Organic investments = always top priority – Dividend = consistent payout ~30% of earnings – Acquisitions = will continue to use majority of excess capacity…….continued disciplined approach – Share repurchases = will repurchase minimum of 1-2% of outstanding shares annually…..with the ability to flex higher as management deems valuation is attractive relative to DCF intrinsic value • M&A market pricing results in lower than acceptable ROIC returns • IDEX is trading at significant discount to intrinsic value Bias Towards M&A Bias Towards Share Repurchase |
![]() IDEX Proprietary & Confidential Total Revenue Operating Margin* Free Cash Flow EPS* IDEX Q3 2012 Financial Performance Continued growth, margin expansion and strong cash flow in a volatile market 7 * EPS / Op Margin data adjusted for $7.1M restructuring expense (2012) and $2.9M restructuring expense and $12.8M CVI inventory step-up expense (2011) Q3 2011 benefited from CEO costs and tax true-up Organic: 1% growth flat year over year 7% growth 7% decline $0.00 $1.00 Q3 $0.71 $0.66 2011 2012 $0 $250 $500 Q3 $477 $480 2011 2012 15% 16% 17% 18% 19% 20% Q3 18.3% 18.3% 2011 2012 $50 $70 $90 Q3 $86 $92 2011 2012 |
![]() IDEX Proprietary & Confidential Fluid & Metering Productivity and strong execution generated margin expansion of 130 bps 8 Q3 Sales Mix: Organic -1% Acquisition -% Fx -3% Total -4% Q3 Summary: Energy and Ag markets strong in NA Chemical project activity has slowed Water municipal recovery could push beyond 2013 Excellent operational execution and productivity Q4 market environment will remain challenged; expecting continued slower markets in Europe and Asia Total Orders Total Revenue Operating Margin* Organic: 1% decline 130 bps expansion Organic: 3% growth * Op Margin data adjusted for restructuring expense $0 $100 $200 $300 Q3 $197 $198 2011 2012 $0 $100 $200 $300 Q3 $206 $198 2011 2012 10% 15% 20% 25% Q3 20.1% 21.4% 2011 2012 |
![]() IDEX Proprietary & Confidential Health & Science Operating Margins of 17.3% up 70 bps sequentially 9 Q3 Sales Mix: Organic -4% Acquisition +7% Fx -1% Total +2% Q3 Summary: Optics & Photonics backlog improving Backlog reduction of $10M due to softness in MPT (Capital Equipment) and HST Industrial Completed Matcon acquisition (part of MPT platform) Scientific Fluidics leveled out, Q4 comps are favorable * Op Margin data adjusted for restructuring expense (2012 and 2011) and CVI inventory step-up expense (2011) Total Orders Total Revenue Operating Margin* Organic: 4% decline 150 bps contraction Organic: 9% decline $0 $100 $200 $300 Q3 $171 $166 2011 2012 $0 $100 $200 $300 Q3 $173 $176 2011 2012 10% 15% 20% 25% Q3 18.8% 17.3% 2011 2012 |
![]() IDEX Proprietary & Confidential Fire & Safety/Diversified Tremendous performance across all of the diversified businesses 10 Q3 Sales Mix: Organic +13% Acquisition -% Fx -3% Total +10% Q3 Summary: North American Fire markets stabilized, restructuring activities completed by year end and will generate benefit in FY13 Rescue experiencing delays in China resulting from provincial elections Dispensing domestic markets improving, continued strength in emerging markets while European markets are uncertain Op margins are up 360 bps driven by structural cost actions, productivity and volume leverage * Op Margin data adjusted for restructuring expense Total Orders Total Revenue Operating Margin* Organic: 13% growth 360 bps expansion Organic: 7% decline $0 $50 $100 $150 Q3 $112 $101 2011 2012 $0 $50 $100 $150 Q3 $99 $108 2011 2012 10% 20% 30% Q3 21.2% 24.8% 2011 2012 |
![]() IDEX Proprietary & Confidential Outlook: 2012 Guidance Summary FY 2012 EPS estimate range: $2.65 – $2.70 Organic revenue growth ~ 3% Positive acquisition impact ~ 5% Operating margin ~ 18.5% Negative Fx impact ~ 2% to sales (at September 30 th rates) Other modeling items Tax rate ~ 30% Cap Ex ~ $38M Free Cash Flow will significantly exceed net income Continued opportunistic share repurchases EPS estimate excludes future restructuring, acquisitions and acquisition–related costs and charges 11 |
![]() IDEX Proprietary & Confidential Q&A 12 |