Page 5 - AMETEK 2018 Annual Report FINAL

“Solving our customers’ most complex challenges

with differentiated technology solutions”

We are committed to supporting organic sales growth. Those tools sales channels, develop additional
our businesses with strong include growth kaizens, digital service capabilities, and add to our
investments in research, marketing, sales force effectiveness, manufacturing flexibility to better
development and engineering. aftermarket services and voice- serve our customers and support
In 2018, we invested more than of-customer programs. Those our global growth.
$230 million in those initiatives, or initiatives are yielding positive
5% of total sales. results as our businesses are doing Strategic Acquisitions
an excellent job integrating them Acquiring businesses with
Our newest products and solutions into their continuous improvement differentiated technology continues
have gained excellent traction in processes. to be the primary focus of our
their respective markets. During capital deployment strategy. We
the year, we unveiled new products In October, we celebrated the had an outstanding year in 2018,
in high-speed digital imaging, opening of our new Technology deploying a record $1.1 billion
laboratory analysis and ultra- Solutions Centre in Bengaluru, on six acquisitions and adding
precise measurement equipment, India, which is equipped with approximately $350 million in
power monitoring systems, and products and technology from annual sales.
medical solutions, to name just a nearly 30 AMETEK businesses.
few examples. This state-of-the-art facility We highlight those acquisitions
showcases AMETEK’s latest in this report, as they are exciting
To gauge the effectiveness of these technology, serving key markets additions for AMETEK. They
new solutions, we calculate our such as aerospace, automation, serve niche markets with highly
Vitality Index — the percentage precision manufacturing, test differentiated technology solutions
of sales derived from products and measurement, and process and hold leading positions in
released within the last three years. analysis. global growth markets. We are
Our Vitality Index for 2018 was an The Centre is designed to help confident those businesses will add
impressive 25%, which speaks customers develop new products significant value to our company.
to the success of our research, and select the best solutions for
development and engineering their specific needs, as well as to Given the strength of our cash
efforts. service our products. The facility flows and balance sheet, we
have sufficient capacity to pursue
Global and Market Expansion allows our teams to provide hands- additional acquisitions. We remain
on demonstrations and training, and
We remain committed to expanding greatly enhances our businesses’ disciplined in our acquisition efforts,
our footprint into adjacent ability to expand their positions in utilizing our proven deal sourcing,
markets and new geographic India’s attractive growth markets. due diligence and integration
regions around the world. By processes to acquire attractive
enhancing our international sales At $2.4 billion, international sales in businesses and drive excellent
and service infrastructure, we 2018 represented half of AMETEK’s returns on capital.
are well-positioned to capture total sales with broad-based growth Cash Generation and
additional share in new markets. across all key geographies. We Capital Deployment
remain focused on strategically
Over the past two years, we investing to further grow our The solid execution of our Four
have broadened our commercial businesses in global markets. We Growth Strategies, along with
excellence tools to improve will continue to expand our global our asset-light business model,

Letter to Shareholders 3

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