Page 16 - 2019 AMETEK Annual Report FINAL
P. 16

14 Performance That Matters




               Performance  The AMETEK Growth Model delivers strong performance that
              That Matters                    positively impacts our shareholders, colleagues, customers and

                                              suppliers, and the communities where we operate.


                                              In 2019, we achieved record results   our Operational Excellence tool kit to
                                              for essentially every key financial   improve efficiency, and in 2019 we
                               $1,388         metric. These results were led by our   delivered record levels of operating
                                              colleagues’ relentless drive to execute   income and EBITDA.
                                              our growth model and do the very best
                                  $1,250                                          Given this growth focus and operational
                                              for our customers.
                                                                                  acumen, coupled with our asset-light
                                  $1,000
                                              We remain focused on generating     model, all of AMETEK’s businesses
                $546              $750        strong top-line growth by improving   are excellent cash generators. In 2019,
                                              organic sales, developing new products   AMETEK’s operating cash flow reached
                                  $500        and completing strategic acquisitions   a record $1.1 billion, a 20% increase
                                              with high growth profiles. As a result,   over 2018. This allowed us to make
                                  $250        our businesses generated record sales   significant incremental investments
                                              in 2019, surpassing $5 billion in annual   supporting our internal growth initiatives,
                 10 11 12 13 14 15 16 17 18 19  sales.                            including new product innovation, along
                                                                                  with enhanced sales and marketing
                     EBITDA                   We also remain steadfast in our     efforts. Free cash flow increased to
                      (In millions)
                                              approach to driving efficiencies and   $1.0 billion, up 20% over 2018 and our
                                              improved operating performance.     free cash flow conversion finished the
                                              Our businesses continue to utilize   year at an exceptional 118%.
                                26.9%

                                   26.5%

                                   25.5%

                                   24.5%
                 22.1%
                                   23.5%
                                   22.5%


                  10 11 12 13 14 15 16 17 18 19
                     EBITDA
                      Margin



                                $1,012
                                  $1,000

                                  $800


                                  $600
                $384
                                  $400

                                  $200

                 10 11 12 13 14 15 16 17 18 19
                       Free
                    Cash Flow
                      (In millions)
   11   12   13   14   15   16   17   18   19   20