A leading global manufacturer of
electronic instruments and electromechanical devices
© 2015 by AMETEK, Inc. All rights reserved.
Cautionary Statements
Statements in this presentation that are not historical are considered
“forward-looking statements” and are subject to change based on various
factors and uncertainties that may cause actual results to differ
significantly from expectations. Those factors are contained in AMETEK’s
Securities and Exchange Commission filings. AMETEK disclaims any
intention or obligation to update or revise any forward-looking statements.
In this presentation certain non-GAAP financial measures may be used.
Please see the Investors section of AMETEK’s website
(www.ametek.com) for a reconciliation to the appropriate GAAP measure.
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© 2015 by AMETEK, Inc. All rights reserved.
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AMETEK Overview
•
Diversified manufacturer with annual sales of $4.0 billion
•
Component of the S&P 500 Index
•
Listed on the NYSE (symbol: AME)
•
Long-track record of creating significant value for shareholders
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Highly differentiated businesses across diverse set of niche markets
•
Strong, experienced management team
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Diluted Earnings Per Share
$2.75
$2.50
$2.25
$2.00
$1.75
$1.50
16% CAGR
(2005 - 2015)
$1.25
$1.00
$0.75
$0.50
$0.25
$0.00
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Note: All financial information presented in slides excludes $0.05 of
Zygo integration cost in 2014 and $0.10 of realignment cost in 2015
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© 2015 by AMETEK, Inc. All rights reserved.
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We Produce Electronic Instruments and
Electromechanical Devices
Revenue
Operating Income
Electronic Instruments Group
Electromechanical Group
17 May 2016
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Electronic Instruments Group
• A leader in the development and manufacture of monitoring, testing,
and calibrating instruments
• Markets served include:
– Process & Analytical
– Aerospace
– Power and Industrial
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© 2015 by AMETEK, Inc. All rights reserved.
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Process & Analytical Instruments
($1.6 Billion in Revenue)
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Products
– Analytical and Emission Monitoring
Instrumentation
– Materials Analysis
EDAX XLNCE Series of
XRF Analyzers for
rapid, non-destructive coating
thickness and composition analysis
– Drilling and Completion Instruments
– Metrology Instruments
– Level Measurement
– Radiation Measurement
•
Markets
– Research/Laboratories
– Industrial
– Oil/Gas/Petrochemical
– Medical
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Aerospace
($200 Million in Revenue)
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Products
– Airframe and Engine Monitoring Systems
– Engine Sensors
– Avionics
AMETEK hydraulic
quantity indicator, heat
exchanger and
temperature sensors for
Boeing 787 Dreamliner
– Fluid Gauging Systems
– Pressure Transducers and
Accelerometers
•
Markets
– Large Commercial Aircraft
– Business and Regional Aircraft
– Military
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Power & Industrial
($550 Million in Revenue)
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Products
– Uninterruptible Power Supplies (UPS)
– Power Quality Monitoring Instrumentation
– Programmable Power Systems
AMETEK Solidstate
Controls industrial
Uninterruptible Power
Supply (UPS) system
– Dash Panel Instruments
– Food Service Instruments
•
Markets
– UPS Systems
– Transmission and Distribution
– Test and Measurement
– Heavy Trucks
– Food Service
AMETEK VIS
custom dash panel
designed for OEM heavy
vehicle manufacturer
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© 2015 by AMETEK, Inc. All rights reserved.
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Electromechanical Group
• A differentiated supplier of electrical interconnects,
technical motors and systems, specialty metals and
electric motors for specialty applications
• Markets served include:
– Differentiated Products
– Floorcare & Specialty Motors
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© 2015 by AMETEK, Inc. All rights reserved.
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Differentiated Products
($1.3 Billion in Revenue)
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Products
– High-precision motion control products
– Thermal management solutions
– AC and brushless DC motors, blowers,
and fans
– Highly engineered hermetic connectors,
terminals, headers, and microelectronic
packages
– Metal powders, metal strip,
and specialty wire
•
AMETEK SCP
ELITE Series
dry-mate fiber
optic connector
Markets
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–
–
–
–
Aerospace & Defense
Medical
Industrial
Petrochemical
Semiconductor
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Floorcare & Specialty Motors
($200 Million in Revenue)
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Products
– Motors and Motor/Blower Systems
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Markets
AMETEK F&SM
tangential bypass
motor/blower for
commercial and
residential floorcare
– Commercial Floorcare Equipment
– Outdoor Power Equipment
– Small Household Appliances
– Health, Fitness and Beauty Products
– Vacuum Cleaners
AMETEK universal
drive motors for
outdoor power
equipment
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© 2015 by AMETEK, Inc. All rights reserved.
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Vision
Commitment
Double the Size
and Profitability
of the Company
in Five Years
Double Digit
Earnings Growth
Over the Business
Cycle
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© 2015 by AMETEK, Inc. All rights reserved.
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Four Growth Strategies
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© 2015 by AMETEK, Inc. All rights reserved.
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Operational Excellence
• Cornerstone strategy for the Company
– Focused on operational efficiency, cost and asset management
– Leveraging broad set of OpEx “tools” to drive operational improvements
and support our growth initiatives
• Key to delivering value from both existing and acquired businesses
– Drives profitability and margin expansion
– Supports organic sales growth initiatives – New Products and Global &
Market Expansion
– Creates value from acquisitions through leveraging our Operational
Excellence “tools” and global infrastructure
– Drives improvements in working capital management
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© 2015 by AMETEK, Inc. All rights reserved.
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Operational Excellence
24%
Operating Margins
• Excellent margin performance
• 2015 operating margins expanded
100 bps to a record 23.8%
• Expect ~$130 million in Operational
Excellence savings in 2016
22%
20%
18%
16%
14%
05
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© 2015 by AMETEK, Inc. All rights reserved.
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Global and Market Expansion
• Key elements of global and market expansion
– Penetrate new, adjacent markets for differentiated products - grow from the
core
– Expand sales, distribution and service network in emerging markets
– Add international acquisitions
– Shift manufacturing to low cost locales
– Expect over $500 million of revenue produced in low-cost locales in 2016
• Reynosa, Mexico; Czech Republic; Shanghai; Serbia; Malaysia
– Create a sustainable competitive position in cost-driven products that allows
us to gain market share and strengthen profitability in highly competitive
markets
– Provides market access in key regions
• International sales ~53% of total sales in 2015: target increasing
international sales to 60% of sales
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© 2015 by AMETEK, Inc. All rights reserved.
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New Products
• Key strategy for generating internal growth
• Sales from new products were 24% of sales in 2015
• Continued strong funding of RD&E at ~5% of sales
• Well positioned with fresh new products that meet the needs of the
marketplace
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© 2015 by AMETEK, Inc. All rights reserved.
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New Products
• Zygo Verifire XL Interferometer
– Designed to measure the
surfaces of specialized optics
– Complete turn-key
solution that is compact
and cost-effective
– Used for the highly
accurate characterization
of flat surfaces
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© 2015 by AMETEK, Inc. All rights reserved.
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New Products
• CAMECA LEAP 5000 Atom Probe
– Latest generation of atom probe
microscopes
– Offers precise atom-by-atom
identification, 3D spatial
positioning, and
accurate
atomic-scale
reconstruction of a
material’s microstructure
– Recognized by the
editors of R&D magazine
at the 54th Annual R&D 100 Awards
for development of LEAP 5000
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© 2015 by AMETEK, Inc. All rights reserved.
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Acquisitions
• Play an important role in driving the growth of the company
– Target one-half to two-thirds of our growth from strategic acquisitions
• Acquisition program is targeted at businesses with revenues
between $50 million and $200 million
• Focus on adding highly differentiated businesses with leadership
positions in their niche markets
• Year to date, we have acquired 2 businesses, deployed
approximately $300 million in capital and acquired approximately
$100 million in sales
• Over the last 24 months, we have acquired 7 businesses, deployed
approximately $1.1 billion in capital and acquired approximately
$475 million in sales
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Acquisitions
• Strong pipeline of opportunities
• Strong free cash flow levels and ability to prudently expand our debt
levels
• Track record of success in making and integrating acquisitions
• Ability to integrate acquisitions is a core competency
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Brookfield Engineering Acquisition
• Brookfield is the global leader in viscosity measurement
instrumentation for quality control applications
• Provides a complete range of viscometers and rheometers as well as
instrumentation for the analysis of texture and powder flow
• Expands our laboratory instrumentation platform into a broader range
of adjacent markets and applications
• Products are used primarily for quality control applications
• Brookfield joins the Instrumentation and Specialty Controls Division
within our Electronic Instruments Group
• Revenue ~$55 million
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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ESP/SurgeX Acquisition
• ESP/SurgeX is a leader in power protection, monitoring, and
diagnostic solutions
• Excellent strategic fit with our existing power protection platform and
is highly complementary with our Powervar business
• Leading industry provider of on-site and remote power protection
products used by industries to lower service costs and ensure
reliable electric power to critical equipment
• ESP/SurgeX joins the Power Systems and Instruments Division
within our Electronic Instruments Group
• Revenue ~$40 million
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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Summary
• Strong Foundation
• Clear Vision
• Solid Strategy
• Excellent Portfolio of Businesses
• Proven Management Team
• Committed to creating shareholder value through our Four Growth
Strategies
www.ametek.com
© 2015 by AMETEK, Inc. All rights reserved.
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