Page 6 - AMETEK 2018 Annual Report FINAL

Total Return to Shareholders
$700

$600

$500

$400

$300

$200

$100

$0
12/08 12/09 12/10 12/11 12/12 12/13 12/14 12/15 12/16 12/17 12/18

AMETEK, Inc. S&P 500 S&P Industrials Russell 1000
The chart compares the performance of $100 invested in AMETEK, Inc., against the S&P 500, S&P Industrials and Russell 1000
Indexes on December 31, 2008, including reinvestment of dividends. AMETEK’s total return to shareholders 10-year CAGR is 18%.

allows our businesses to generate nearly 5.1 million shares of our teamwork and social responsibility.
strong and sustainable levels of common stock for approximately Our businesses are empowered
cash flow. It is a key focus for our $368 million, and we increased our to do what is right for their
business leaders, who are tasked dividend by 56%. By taking these customers, their colleagues and
with minimizing their businesses’ actions, we can compound our their communities. The AMETEK
working capital needs and company’s growth and drive long- Foundation partners with our
maximizing operating cash flows. term shareholder value. colleagues in this effort by making
2018 was an exceptional year Looking Ahead to positive impacts in the areas of
for AMETEK in terms of cash 2019 and Beyond children’s education, health and
generation. Full-year operating Given our recent results and welfare, and civic and social service
cash flow grew 11% to a record the strength of our underlying programs in the communities
$926 million. Free cash flow for the businesses, we have an where we operate. This culture is
year totaled $843 million, up 11% increasingly positive outlook for the fundamental to our sustainable
over 2017, resulting in a free cash future. Our stated goal to double success.
conversion ratio of 110% of net earnings every five years remains
income. unchanged. The AMETEK Growth I thank all my AMETEK colleagues
Model and underlying growth for their hard work and tireless
The excellent cash flow generated strategies are proven and scalable. devotion to our business model.
by our businesses, along with They delivered outstanding
the strength of our balance We remain well-positioned to performance with record results
sheet, provides us with significant capitalize on the global secular in 2018 and helped position our
flexibility in our deployment of growth trends our businesses company for a bright future.
capital. Strategic acquisitions support. Our management team
remain our top priority for capital is experienced and committed to .
deployment. Opportunistic share delivering shareholder value.
repurchases and modest dividends
remain secondary uses of free cash Our culture is ingrained in our
flow. In addition to the $1.1 billion business and is based on our core David A. Zapico
we deployed in 2018 on strategic values of ethical business practices, Chairman of the Board and
acquisitions, we also repurchased respect for the individual, diversity, Chief Executive Officer

4 Letter to Shareholders

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