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Commercial Marine Presentation 2010

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Commercial Marine Presentation

2010

Colfax Corporation Overview

2

Company Overview

2008 Revenue $605M~2,000 associates worldwide16 production facilities - 7 countries300+ direct sales and marketing associates450+ authorized distributors - 79 countriesHeadquartered in Richmond, VANYSE: CFX

Colfax is strategically focused on serving key infrastructure end markets in the fluid-handling industry

2 & 3 Screw Pumps

Centrifugal Pumps

Progressive Cavity Pumps

Precision Gear Pumps

Specialty Valves

Fluid Handling Systems

End Markets

Products

Global Navy GeneralIndustrial

Commercial Marine Oil & Gas Power

Generation25% 14% 14% 6% 41%

Colfax Corporation Overview

3

Colfax is strategically and solely focused on the fluid-handling industry

1996

1997 20001995

1998 2001

2004

2005 2007

Historical Milestones

Acquired Allweiler

AcquiredWarner Electric

Acquired Zenith Pump

and PVIAcquired Tushaco

Acquired LSC and Fairmount

Automation

Acquired Ameridrives

Colfax Formed

Acquired Imo Industries, Nuttall Gear,

Industrial Clutch

DivestedRoltra Morse

DivestedWarner Motion

Control

DivestedMorse

Controls

DivestedColfax Power

Transmission Group

DivestedGems Sensors

2008

InitialPublic

Offering

Colfax Corporation Overview

44

Derived from the proven Danaher Business SystemUtilizes Voice of the Customer (“VOC”) to target breakthrough growth initiatives, new products and applicationsConducts root-cause analysis, develops process improvements and implements sustainable systemsCulture of continuous improvementAll aspects of operations and strategic planning

CBS is how we manage our business and has been the key driver to our success

Colfax Business System Drives Business Improvement

Colfax Corporation Overview

5

Well Positioned to Serve our Customers

Portfolio of Leading Product Brand Names

Portfolio of Leading Product Portfolio of Leading Product Brand NamesBrand Names

Experienced Management Team Focused on Meeting

Customer Needs

Experienced Management Experienced Management Team Focused on Meeting Team Focused on Meeting

Customer Needs Customer Needs

Global Leader in Specialty Fluid-Handling Products

Global Leader in Specialty Global Leader in Specialty FluidFluid--Handling ProductsHandling Products

Proven Application Expertise in Solving

Critical Customer Needs

Proven Application Proven Application Expertise in Solving Expertise in Solving

Critical Customer NeedsCritical Customer Needs

Extensive Global Sales, Distribution and

Manufacturing Footprint

Extensive Global Sales, Extensive Global Sales, Distribution and Distribution and

Manufacturing FootprintManufacturing Footprint

Global Strength and Strong Financial Position

Global Strength and Strong Global Strength and Strong Financial PositionFinancial Position

Colfax Corporation Overview

66

Colfax Solutions

Commercial MarineColfax helps keep the ocean’s freight dependably moving around the world with on-site service virtually anywhere.Technology and application expertise

– Oil, Lube, hydraulics and fuel

– Water and ballast

– Sludge and Bilge

– Trimming and cooling

Product Brands– Allweiler

– Houttuin

– Imo AB

Colfax Corporation Overview

7

Product Overview

7

33--Screw PumpScrew Pump

Progressing Cavity PumpProgressing Cavity Pump

22--Screw PumpScrew Pump

Pump unitsPump units

Centrifugal PumpCentrifugal Pump

AutomationAutomation

EMISSION REGULATION

MARPOL Annex VI

Colfax Corporation Overview

9

Regulatory Time Line

Colfax Corporation Overview

10

ECA under developmentPushing to be approved for earlier dates. ECA since 2007

Global limit sulphur %4.50 % Today3.50 % on or after 1.1.2012

[…]0.50 % on or after 1.1.2020

Emission Control Areas1.50 % Today1.00 % on or after 1.3.20100.10 % on or after 1.1.2015

IMO IMO MARPOL,MARPOL,Annex VI

Annex VI

EU at berth 0.10 % after 1.1.2010

EU DIRECTIVE EU DIRECTIVE 2005/33/EC

2005/33/ECCalifornia + 24 nautic miles

Phase I1.5 % MGO (DMA) after 1.7.20090.5% MDO (DMB) after 1.7.2009Phase II0.1% MGO/MDO after 1.1.2012

California Air California Air Resources Board

Resources Board

ECAs and Sulfur Limits

Colfax Corporation Overview

11

Changes and Trends in Fuel Specs

SULPHUR LIMITS OF MARINE FUELS

Enforcement date Sulphur limit (% m/m)

Grade Operating area Reference

Already in force

4.50 All grades Global limit MARPOL Annex VI 0.10 MGO EC territory and waters Directive 1999/32/EC as amended by Regulation 1882/2003 and

Directive 2005/33 1.50 All grades Baltic ECA Directive 1999/32/EC as amended by Regulation 1882/2003 and

Directive 2005/33 MARPOL Annex VI

North Sea ECA

Early 2009

1.50 MGO (DMA) California waters and 24 NM of

the California baseline

CARB (mandatory use of either MGO or MDO with the set maximum sulphur limits to auxiliary engines) 0.50 MDO (DMB)

1 July 2009 1.50 MGO (DMA) CARB (mandatory use of either MGO or MDO with the set maximum sulphur limits to main propulsion engines and boilers) 0.50 MDO (DMB)

1 January 2010 0.10 All grades EC inland waterways and at berth for > 2 hours

Directive 1999/32/EC as amended by Regulation 1882/2003 and Directive 2005/33

1 July 2010

1.00

All grades

Baltic ECA Revised MARPOL Annex VI adopted by Resolution MEPC.176(58) North Sea ECA

1 January 2012 3.50 All grades Global limit Revised MARPOL Annex VI adopted by Resolution MEPC.176(58)

1 January 2012 0.10 MGO (DMA) MDO (DMB)

California waters and 24 NM of the California baseline

CARB (mandatory use of either MGO or MDO with the set maximum sulphur limits to all engines)

1 January 2015

0.10

All grades

Baltic ECA Revised MARPOL Annex VI

adopted by Resolution MEPC.176(58) North Sea ECA

1 January 2020∗ 0.50∗ All grades Global limit Revised MARPOL Annex VI adopted by Resolution MEPC.176(58)

MGO: ISO 8217-DMA and DMX MDO: ISO 8217 – DMB and DMC ∗ A review, to be completed by 2018, will establish whether this grade of fuel oil will be available. If not, this implementation date may be changed to 1 January 2025.

Colfax Corporation Overview

12

ISO 8217

Parameter Unit Limit DMX DMADensity @ 15°C Kg/m3 Max - 890Viscosity @ 40°C mm2/s Max 5,5 6,0Viscosity @ 40°C mm2/s Min 1,4 1,5Sulfur %(m/m) Max 1,0 1,5Flash point °C Min 43 60Lubricity, HFRR µm Max - -

ISO 8217 Fuel Standard, Third edition 2005-11

Subject to change in the new revisionSubject to change in the new revision

Not regulated in existing spec. subject to changeNot regulated in existing spec. subject to change

Not allowed onboard due to low flash point Not allowed onboard due to low flash point

2,0 2,0

520 520

Values that have been discussed and that are subject to changed in the new revision marked in red. Revision is expected to be launched in June/July 2010.

Values that have been discussed and that are subject to changed in the new revision marked in red. Revision is expected to be launched in June/July 2010.

Colfax Corporation Overview

13

Typical DMA Visc. Temp Diagram

DMA visc. acc. to

ISO 8217

typical DMA visc.

1.5

Ambient temperature in an engine room easily reaches 40°C.Sometimes even higher, in some cases as much as 55°C. Excessive heat from pipes and engines will raise the temperature even furtherViscosity will fall causing significant change of operating conditions in the system.

Colfax Corporation Overview

14

Low Pressure Applications – Transfer Pumps

Affected applications

Colfax Corporation Overview

15

Low Pressure Applications – Supply & Circulation Pumps

Affected applications

Colfax Corporation Overview

16

Circ. Pumps

FO return

EngineMGO

HFO

Heater

Heater

Cooler

Mixing tank

Fuel Switching (Wärtsilä)

Colfax Corporation Overview

17

Fuel Switching, MAN Solution

Circ. Pumps

FO return

Engine

Heater

Heater

Mixing tank Cooler

HFO Service Tank

MGO Service Tank

Automatic switch over valve – min time for switching ≈1 hour or max cooling of 2°C/min.Automatic switch over valve – min time for switching ≈1 hour or max cooling of 2°C/min.

Viscom

eter

Cooler to be as close to engine as possible but before the viscometer in order to have control of viscosity at engine.

Cooler to be as close to engine as possible but before the viscometer in order to have control of viscosity at engine.

Colfax Corporation Overview

18

High Pressure Applications, Boiler

HFOTank

MGOTank

Cooler

Cooler

Boiler

Burner

Pumps

Filter

Colfax Corporation Overview

19

Viscosity/Differential Pressure

Low pressure applications are most likely not a high risk as the change in ∆P is not that significant at 1,6cSt compared with 1,4cSt. However it leads to reduced life time of the pump.Standard booster requires a ∆P of 6bars on the circulating pumps.FO transfer and purifier feed application requires a ∆P 4bars.

1,6

7,356,90

1,4

∆Pressure (Bar)

Visc. (cSt)

Colfax Corporation Overview

20

Screw vs. Gear

Bearing surface of sleeve bearingsBearing surface of rotors Total “bearing” surface of the screw pump is much larger means less pressure/mm2

Screw pumps are better in handling low viscosity than gear pumps.

Colfax Corporation Overview

21

Colfax Solution- Differential Pressure / Viscosity

Applications– Low pressure

• Circulating pump

• Supply pumps

• Transfer pumps

Low pressure less critical than High– High pressure

• Boiler feed/supply

High pressure more critical than low

Colfax solution – Surface treated rotors and housings!

OptiLine

TEST RESULTS

IMO AB Test on ACE Pump

Colfax Corporation Overview

23

Background– Due to new standards and regulations the Marine Gas Oil might have lower viscosity and

will have lower sulphur content in the future.

– Can we use IMO AB low pressure pump for these Marine Gas Oils?

– If not, what changes will we make?

The Test– This presentation is based on the result after 735 hours test; the test will continue and a

new evaluation will be done later.

– We tested 10 ACE 038N pumps with different rotor materials, with and without heat treatment together with standard nodular cast iron houses with and without heat treatment.

– The oil is a worst case DMX Marine Gas Oil.

– Running conditions were tougher than a worst case for the application.

Background and Testing

Colfax Corporation Overview

24

Oil and Testing Conditions

The OilThe Oil was designed by Preem to be a worst case oil within the standard and regulation.

– No additive

– Viscosity at 40°C 1,349 cSt Standard min 1,4 cSt

– Sulphur content 0,0905 % Regulation max 0,1 %

– Lubricity (HFRR) 513 µm Possible coming standard 520 µm

Running Conditions– Rotation speed 2950 rpm

– Differential pressure 7,3 bar Our theoretical pressure limit is 7,3 bar at 1,6 cSt

– Temperature 55°C “Worst Case” in a machine room

– Viscosity 1,13 cSt

– Running Time 735 Hours

Colfax Corporation Overview

25

The Leakage

C0

0,00

10,00

20,00

30,00

40,00

50,00

60,00

0 1 2 3 4 5 6 7 8 9 10 11

Pump number

C0

Before test After 735 hour Data book

Results - Leakage

Colfax Corporation Overview

26

The Leakage

Changes in C0

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

0 1 2 3 4 5 6 7 8 9 10 11

Pump number

Results - Leakage

Colfax Corporation Overview

27

The Wear

Lobe wear (power rotor + idler)

0,00

0,01

0,02

0,03

0,04

0,05

0,06

0,07

0,08

0 1 2 3 4 5 6 7 8 9 10 11

Pump number

mm

Results - Wear

Colfax Corporation Overview

28

Conclusions– All changes are normal “run in wear” except pump #1

– The differences between the results for pump 2-10 are too small to relatively measure the accuracy.

– Based on this test, pumps will be able to handle the low visc. low sulphur fuel.

Temp. (C) during test run in Pumps during test at IMO AB lab

Conclusion