Slide 1: Second Quarter 2004 Financial Results Conference Call
all per Industries, Inc. Second Quarter 2004 | ROPER | Financial Results Conference Call July 29, 2004
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information provided in this presentation contains forward- locking statements within the meaning of the federal securities laws. These statements reflect management's current beliefs and are not guarantees of performance. They involve nsks and uncertainties, which could ca
Slide 3: Second Quarter Summary
Second Quarter Summary Ol Achieved Record Financial Results * Net Sales, Earnings, Cash Flow O Margins Expanded « Restructuring Benefits Q)Eamed Upper-End of Our Guidance Range * Despite Shortfall of Sales to Gazprom O Successfully Executing Growth Strategy « Organic Growth Expanded * NTGH Performin
Slide 4: Results Sequentially Strengthening
Results Sequentially Strengthening (Millions) Qi 2004 Net Sales $221 Income from Ops $33 Adj. Inc. from Ops! $36 Cash from Ops $26 ect Continued Grow ghout 2004 2 Bycludes Ql restructuring costs and QUQ2 ineventony evaluation adjustments arising fom acquisitions 5
Slide 5: Organic Revenue Growth
Organic Revenue Growth Strong Year-on-Year Comparison Favorable Trend +10% Tatal WX 8% Care +7T% Core Be gud @ Q2 03 ‘Remicete the yarvenyear escent ele fr basics ommed for he enti quater it 2002 ad 2003; each eles to Capron, 6
Slide 6: Millions except DEPS 2003
Millions except DEPS 2003 Net Sales Gross Profit Gross Margin Income from Ops Operating Margin Diluted EPS (pEPs) Cash Results Tell the Real * Broad-Based Strength Throughout Roper + Orders Grew 10% Organically + Excluding NIGH, Gross Margins ‘were Higher in Q2 2004 + Capturing Restructuring Benefit
Slide 7: Focus on Cash
Focus on Cash (Millions) | Cash From Operations [Cash DEPS [EBITDA $0.89 $51 $40 $25 +88% — 22003 22am 22003 «22004 220032 2nn 171% Conversion of DEPS + EBITDA Margins Up Earnings D&A per Share 560 Bpts to 21.8%
Slide 8: Balance Sheet Strengthening
(Roper) Balance Sheet Strengthening Dec. June Mittions 5 2004 As a Percent of Sales (D Inventory 13.5% (R) Receivables 18. 5% (P) Payables & Accruals| 14, 5% Total (I+R-P) + Down 180 Bpts YTD * Reduced 110 Bpts YTD + NIGH Acq, Payments + Reduced 230 Bpts YTD + $5 Million Favorable Cash Impact in Q2
Slide 9: Instrumentation
Instrumentation Acton Research * Antek « Integrated Designs * Lugitech = FAC * Struers * Usan Highlights O Net Sales Up 15% + Strong Oil & Gas Markets + Favorable Materials Testing Markets Orders Grew 17% Operating Margins Improved 490 Bpts to 17% + Restructuring Benefits C Pasitive Outlook for Rema
Slide 10: Energy Systems and Controls
Energy Systems and Controls Compressor Controls = Metrix Instruments = Zetec Highlights Net Sales EBITD A/Op Profit Cl Despite $8 Million Decline in Gazprom Revenues, Net Sales Increased 35.9 36.3 1 + Now Expect Under $10 Million of Net = Sales from Gazprom in 2004...Less 6.3 than 1% of Roper’s Tota
Slide 11: Acquisition Complements Zetec Business
Acquisition Complements Zetec Business Zetec PGB Greater BOP Activity Geographic Expansion 12
Slide 12: Industrial Technology
Industrial Technology Abel * AMOT * Carnell « Flaw Technalagy * Fluid Metering * Hansen * Neptune * Raper Pump Highlights CQ Double-Digit Sales and Order Organic Growth + Broad-Based Gains + Strengthened Industrial Markets Neptune Enjoyed Double-Digit Growth + Customer-Focused Strategy Produces Resu
Slide 13: Scientific & Industrial Imaging
Scientific & Industrial Imaging DAF « Gatan * Media Cybernetics * QImaging * Redlake * Raper Scientific Highlights [NetSales | EBITD A/Op Profit Sales Up 5% + Handheld Instrument Volume Increased 43.4 45.5 «Physical Science Markets Soft + Project Timing 87 QO Orders Increased 29% TA + Focus on Solut
Slide 14: Strong Growth Expected in 2004
Strong Growth Expected in 2004 3 Net Sales > $925) DEPS $2.58 ; Millions $2.70 $2.01 $657 ™ 2004 = 1 Raised from Revised Guidance of $900-$925 2 Raised from Revised Guidance of $2.50-$270 Despite $10+ Million Lower Sales to Gazprom. 2DEPS exude dat eng ots, inud opr md NTCH weer ean en, 2 da ‘6 mili
Slide 15: Expanding Earnings Throughout 2004
Expanding Eamings Throughout 2004 Qi 2004 DEPS $0.52 Q2 $0.63 Q3 Q4 Year $0.68-$0.73 $0.75-$0.82 $2.58-$2.70 *Q3 Shut-Downs 2004 Excludes + Heavy Sarbox Costs in Q3 $0.04 Ryfect from «Strong Imagine Backl $2 Million NIGH trong Imaging Backlog Inventory + Strong Energy Projects Q4 Revaluation. + Wast
Slide 16: Cash Performance Supports Growth Initiatives
(Roper) Cash Performance Supports Growth Initiatives Cash DEPS $3.62- Cash from Ops 8150- $3.74 1 Millions $160 1 Raised from Original Guidance of $140-$160 Accelerating Cash Flow Throughout 2004 Excludes discontinued ops, and debt extinguishment and NTGH inventory revaluation costs, 2003 inches $6
Slide 17: Roper's Strategic Portfolio Transformation
Roper’s Strategic Portfolio Transformation Net Sales (Millions) > $925 MI Businesses Acquired After 2000 I Petrotech, Gazprom, IDI TH Other Businesses Owned Since 2000 2000 2001 2002 2003 2004e Transforming Businesses Acquired After 2000 4 Struers ZETEC LL + Great Cash Retums + Favorable Markets + R
Slide 18: Summary
Summary QO Growth Initiatives Delivering Powerful Results QO) Cash Focus Delivering Record Performance QO) Balance Sheet Strengthening QO Working Capital Velocity Increasing QO Results Sequentially Improving Throughout Year QO Portfolio Transformation Driving Steady Growth, Less Volatility Expect Re
Slide 19: Appendix
all per Industries, Inc. Ope! Appendix
Slide 20: Reconciliations and Definitions
Reconciliations and Definitions Smetana 21