IDEX : IR Presentation

IDEX Investor Presentation

2023

IDEX Proprietary & Confidential

Cautionary Statement Under the Private Securities Litigation Reform Act; Non-GAAP Measures

SAFE HARBOR STATEMENT

This presentation contains "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements may relate to, among other things, the Company's full year 2023 focus and the assumptions underlying these expectations, plant and equipment capacity for future growth and the anticipated timing and effects of planned facility expansion, the duration of supply chain challenges, anticipated future acquisition behavior and capital deployment, availability of cash and financing alternatives, the intent to refinance or repay the Company's 3.20% Senior Notes due June 2023 using the available borrowing capacity of the Revolving Facility and the anticipated benefits of the Company's acquisitions, including the acquisitions of ABEL Pumps, L.P. and certain of its affiliates ("ABEL"), Airtech Group, Inc., US Valve Corporation and related entities ("Airtech"), Nexsight, LLC and its businesses Envirosight, WinCan, MyTana and Pipeline Renewal Technologies ("Nexsight"), KZ CO. ("KZValve") and Muon B.V. and its subsidiaries ("Muon Group") and are indicated by words or phrases such as "anticipates," "estimates," "plans," "guidance," "expects," "projects," "forecasts," "should," "could," "will," "management believes," "the Company believes," "the Company intends" and similar words or phrases. These statements are subject to inherent uncertainties and risks that could cause actual results to differ materially from those anticipated at the date of this presentation. The risks and uncertainties include, but are not limited to, the following: the impact of health epidemics and pandemics, including the COVID-19 pandemic, and the impact of related governmental actions on the Company's ability to operate its business and facilities, on its customers, on supply chains and on the U.S. and global economy generally; economic and political consequences resulting from terrorist attacks and wars, including Russia's invasion of Ukraine and the global response to this invasion, which, along with the ongoing effects of the COVID-19 pandemic, could have an adverse impact on the Company's business by creating disruptions in the global supply chain and by potentially having an adverse impact on the global economy; levels of industrial activity and economic conditions in the U.S. and other countries around the world, including uncertainties in the financial markets; pricing pressures, including inflation and rising interest rates, and other competitive factors and levels of capital spending in certain industries, all of which could have a material impact on order rates and the Company's results; the Company's ability to make acquisitions and to integrate and operate acquired businesses on a profitable basis; the relationship of the U.S. dollar to other currencies and its impact on pricing and cost competitiveness; political and economic conditions in foreign countries in which the Company operates; developments with respect to trade policy and tariffs; interest rates; capacity utilization and the effect this has on costs; labor markets; supply chain backlogs, including risks affecting component availability, labor inefficiencies and freight logistical challenges; market conditions and material costs; risks related to environmental, social and corporate governance issues, including those related to climate change and sustainability; and developments with respect to contingencies, such as litigation and environmental matters, and the other risk factors discussed in Item 1A, "Risk Factors" of this annual report. The forward-looking statements included here are only made as of the date of this presentation, and management undertakes no obligation to publicly update them to reflect subsequent events or circumstances, except as may be required by law. Investors are cautioned not to rely unduly on forward-looking statements when evaluating the information presented here.

NON-GAAP MEASURES

The Company uses certain non-GAAP measures in discussing the Company's performance. The reconciliation of those measures to the most comparable GAAP measures is detailed in IDEX's Form 10-K for 2022, which is available at www.idexcorp.com.

IDEX Proprietary & Confidential

2

IDEX Corporation Overview

$3.2 BILLION SUPPLIER of highly engineered industrial and technology solutions for mission critical niches

Differentiated style of competition and unique operating approach that create defensible competitive "moats" and superior performance

Our objective is to provide consistent

DOUBLE-DIGIT EARNINGS GROWTH and STRONG CASH FLOW with SUPERIOR RETURN on invested capital

2022 Revenue

$3.2B

2022 Adjusted

EBITDA%

27.9%

2022 Free Cash

Flow

~$489M

Employees

~8,900

IDEX Proprietary & Confidential

3

Our History

IDEX operates 100+ locations globally in highly diverse markets and industries

Expand

Global Leader in

Fire & Safety

Purchase	Create Sealing
Platform
of Ag
Flagship

240
230
220
210
200
190
180
170
160
150
$

Fire & Safety

Presence

Original Flagship	Expand Industrial
	Presence

Establish Energy /	Water/ Industrial/H&S	Optics Acquisitions
Health & Science	Platform expansions
Presence
		Operating model

Global operating company, professionally managed; creation of growth platforms

Segmentation & portfolio categorization

140	Price
130
120	Stock
110

100

90

80

70

Acquisition based holding company

60

50

40

30

20

10

0

IDEX Proprietary & Confidential

4

Our Position: Markets & Geography

Markets

	Other
Agriculture	7%
Industrial
4%
	19%

Semiconductor

5%

Paint

5%

Chemical

5%Fire & Safety

11%

Automotive 6%

Water			Life Sciences
7%			9%
Analytical			Energy
		8%
Instruments	Food & Pharma
7%	7%

• Own highly engineered & proprietary assets in fragmented niches of growing markets
• Well positioned in markets with secular growth tailwinds
• #1 or #2 position in niche markets

Geographies

Strong Global Presence:

• • 52 North America
  • 43 Europe
  • 14 Asia
  • 2 Australia
  • 1 South America
• Diversified portfolio with strong global positioning
• Continued investments in emerging markets
• Acquisition targets across all geographies

Global Sales by Geography:

25%		USA
52%		Europe
23%		Rest of World

IDEX Proprietary & Confidential

5

Our Structure

FLUID & METERING	HEALTH & SCIENCE	FIRE & SAFETY /
TECHNOLOGIES	TECHNOLOGIES	DIVERSIFIED PRODUCTS

2022 REVENUE	$1.2B	$1.3B	$0.7B
% OF TOTAL	37%	42%	21%
2022 ADJUSTED	32%	31%	27%
EBITDA MARGIN%
	Pumps	Scientific Fluidics & Optics	Dispensing
	Agriculture	Material Processing	BAND-IT
BUSINESS PLATFORMS	Water	Sealing Solutions	Fire & Safety
Valves	Performance Pneumatics
	Energy	Micropump

IDEX Proprietary & Confidential

6

Our Performance

STRATEGY & OPERATING MODEL

DELIVER OUTSTANDING FINANCIAL PERFORMANCE

(Dollars in millions, except EPS)

$3,500 $3,000 $2,500 $2,000 $1,500 $1,000

$500 $0

$9.00

$7.00

$5.00

$3.00

$1.00

-$1.00

				SALES				$1,000		ADJUSTED EBITDA
				4.6% CAGR								6.4% CAGR
										$800
										$600
										$400
										$200
2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	$0
2013	2014	2015	2016	2017	2018	2019	2020	2021	2022
	ADJUSTED EPS				CASH GENERATION
			8.9% CAGR				$600	Free Cash Flow CAGR: 2.8%
										$500
										$400
										$300
										$200
										$100
2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022

Operating Cash Flow		Free Cash Flow

IDEX Proprietary & Confidential

7

Our Approach to Performance

Disciplined Capital Deployment

Distinctive Culture

Great Businesses

IDEX Proprietary & Confidential

8

Great Businesses

Application Characteristics

• Highly engineered
• Mission-critical
• Configurable components

Business Model

• Market leadership (#1, #2)
• Asset light manufacturing
• Defensible technology (minimal R&D)
• Small portion of customer bill of material

Market Characteristics

• Niche application size <$1.5 B
• No mega-caps as leading competitors
• Do not operate in commoditized spaces

• Deep Moat
• Pricing Power
• High Margins
• Superior ROIC

IDEX Proprietary & Confidential

9

Great Businesses Drive Superior Value

Operating Returns on Operating Capital

280%

260%

240%

220%

200%

180%

160%

140%

120%

100%

80%

60%

40%

20%

0%

OROC = EBITA / (Net Property Plant Equipment + Working Capital)

*Data from fiscal 2022 10-K filings

Proxy Peers

Peer Average

IDEX

IDEX Proprietary & Confidential

10