Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Roper Industries — Merger or Acquisition (October 2004)
35 slides from Roper Technologies's merger presentation, Oct 7, 2004
Slide 1: Roper Industries Investor Meeting
aa. Industries, Inc. yey Investor Meeting October 7, 2004
Slide 2: Safe Harbor Statement
(Feper) Safe Harbor Statement The information provided in this presentation contains forward looking statements within the meaning of the federal securities laws. These forward looking statements include, amang athers, statements regarding our prapased acquistion af TransCore (fhe acqulston), the te
Slide 3: Acquisition of TransCore
(Feper) Acquisition of TRaxSCore QOAnother Strategic Growth Platform @ RFID and SatCom Technologies ™@ Proven Expertise in High Growth Applications OTypical Roper Business @ Engineered Solutions @ Market Leader @ High Margins, Cash Flow O Financially Compelling @ Accretive in 2005 @ Significant Sale
Slide 4: Strategic Growth Platforms
(Feper) Strategic Growth Platforms Industrial Technology TRANECORE Technology Energy Systems & Controls Instrumentation Scientific & Industrial Imaging $ in Combined 2004 Net Sales’ Combined esimatas of Roper and TransCore, TranaCore's ficcal year ends on January 91, 2005,
Slide 5: Dramatically Shaping the Portfolio
(Feper) Dramatically Shaping the Port Net Sales (Millions) TransCore Other Businesses Acquired After 2000 Petrotech, IDI, Gazprom Other Businesses Owned Since 2000 iiill 2000 «2001 «2002 2003 2004e > $1,290 20046 olio Primary Businesses Acquired After 2000 4 Struers ZETEC LL Tra&Core, Great Cash Ret
Slide 6: New Platform Adds New Opportunities...
(Feper) New Platform Adds New Opportunities... (Millions) >$1,290 , Q Strong Recurring Revenue $365 O Backlog, Relationships, Contracts Provide Good Visibility >$925| >$925| O Increasing Mix of Higher $657 Margin Offerings Q Multiple Growth Paths aa 2003 2004e 2004 TransCore
Slide 7: ... With Roper Margins and Cash Flow
(Feper) ... With Roper Margins and Cash Flow Adjusted EBI (Millions) $2784 2 20% EBITDA Margin Q Opportunities to Further Expand Margins $73 s206+| QO High Operating Leverage O Low Capital Intensity | O Efficient Working Capital al 2003 2004e 2004c TransCore
Slide 8: Accretive Transaction
(Feper) Accretive Transaction OExpect $0.10-$0.15 Diluted EPS in 2005 Olncludes Effect of Likely Financing Structure OExpect TransCore to Show Free Cash Flow of $33 Million in 2004 $0.88 per Share (Diluted) ' * Assumes 37,600,000 fully diluted Roper Industries shares. 8
Slide 9: Technology & Capability Synergies
(Fp=") Technology & Capability Synergies QAutomated Meter Reading MRF Technologies ™ Solution Support Teams = Commercial Monitoring Olmaging RFID m Access to Global Satellite Communications Security Channels Software m Advanced Solution Applications Expertise Collaboration mLow-Light and Motion Imag
Slide 10: TransCore Proven Management Team
(Fper) TRANBSCORE Proven Management Team Transportation & Technology Experience John Worthington CEO John Simler 17 Years coo Joe Grabias 6 Years CFO Kelly Gravelle 20 Years Chief Technology Officer 25 Years Patrick Conley 26 Years Chief Software Officer David Sparks 22 Years Corporate Development G
Slide 11: TransCore Growth
(Feper) TRARECORE. Growth Net Sales (Millions) o” $41 1995 $365 2004e Growth Supported by Technology Development & Strategic Investments Barriers to Entry Q Long-Term Relationships, Contracts O Broadest Product and Services Offering O Application Expertise Well-Positioned to Capitalize on Growing Te
Slide 12: Strong Brand Equity
(Feper) Strong Brand Equity TRANECORE CarrierPomnt™ DAT Connect.com’ GLOBALWAV= DAT Part Keypoint SmartPass’ Pa Pr gieller Tag VI linktrak Link Logistics
Slide 13: ime:
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Slide 14: Advanced RF Tag & Reader Features
(Feper) Advanced RF Tag & Reader Features Read/Write Capabilities . Low Battery...NO Battery i : \ Multi-Protocol = ‘ -_ . . ey a High-Speed Reading =! = Tamper-Resistant Tags Programmable Tags bal - Greater Reading Range Encryption Features Soon = me, to Be Released Leading Technology for Advanced
Slide 15: Application Opportunities Abound
Application Opportunities Abound
Slide 16: Leveraging Technology and Applications Expertise
Le] as Leveraging Technology and Applications Expertise
Slide 17: Tolling Represents a Significant Non-Tax Source of Revenue
= q Ns ig Soe, es \ ae ge. Tolling Represents a Significant Non-Tax Source of Revenue to States and TransCore is the “Cash Register”
Slide 18: Widespread Traffic Problems
(Feper) Widespread Traffic Problems Increase in Travel Delays, 1992 — 2002" Chicaga Orlando pe Atlanta Dallas 4 20 30 40 50 60 70 Annual Hours of Delay Per Traveler “There are no ‘free’ roads.” * NY 2004 Study by Texas ABRAT@xas Transportation atitte 18 2 Texas Transportation Commission, December 20
Slide 19: Automated Tolling Provides Attractive Solution
(Feper) Automated Tolling Provides Attractive Solution Options‘ Examples‘ Analysis Tul Alte mative Work Hours Alternatives Ruesrenan Large-scale behavior modification Lane Preferences Land Usel Parkin Soategies Big ticket infrastructure changes Transit pM Reine Long term strategy PA) | Preference To
Slide 20: End-to-End Tolling and Traffic Solutions
(Fp) End-to-End Tolling and Traffic Solutions Transaction | Processing & Replacement - > Systems Operations & System Design Integration Maintenance 12 Beyond oS Months Months Months | Violations Processing Tolling & Monitoring Construction Tags and & installation Readers Sales 20
Slide 21: RFID Electronic Vehicle Certification (EVC)
(Fp=2) RFID Electronic Vehicle Certification (EVC) QAutomatic Screening and Enforcement of Motor Vehicles for Compliance Registration, Insurance, Inspection Olncreases Safety, Efficiency and Fee Collection TransCore’s Technology Provides the Solution O Tamper-Resistant QHigh Speed Readers O Largest
Slide 22: Growing Opportunity Leverages RFID Leadership
Growing Opportunity Leverages RFID Leadership
Slide 23: North American Airport Customers
(Feper) North American Airport Customers Security Solutions Deployed Around the Continent
Slide 24: A TransCore Electronic Fence Around the United States
“A TransCore Electronic Fence Around the United States”
Slide 25: Homeland Security
(Feper) Homeland Security Secure Freight - Operation Safe Commerce (OSC) Q Public-Private Program Q Demonstration of “Off the Shelf Technologies Q TransCore's Role m RF Tags, Electronic Seals for Containers, Rail Cars, Trucks and Drivers ™ Design, Installation, and Maintenance of Reading Stations at
Slide 26: Supply Chain Security Solution
(Feper) Supply Chain Security Solution gee cps sates og O Continuous Tracking Q Container Security Assurance Q Continuous Monitoring of High-Value Cargo Converting the “Supply Chain” to the “Secure Chain” 26
Slide 27: Higher Asset Utilization...Lower Capital Costs
igher Asset Utilization...Lower Capital Costs + Better Asset Control ower Operating Costs + Reduced Theft...Higher Availability + Round-the-Clock Security Compelling Customer Benefits
Slide 28: Large, Untapped Potential in Vehicle Tracking
Large, Untapped Potential in Vehicle Tracking Trailers | 4.4 Million Remaining Long Haul -_ _ Trucks oo 1.8 Million Remaining Local Fleets | 20.2 Million Remaining 0%, ——————— Technology Adoption —————- 1 99, TransCore is Well-Positioned in this Rapid Growth Market Source: Company Information 28
Slide 29: Leading Freight Matching Service
(Feper) Leading Freight Matching Service Available Trucks (Capacity) Available Loads (Supply) Brokers 34 Party Logistics TransCore’s Freight-Matching Customer Benefits " Largest Freight Matching Network Increased Profits "10,500 Customers, $40 Billion Annual Increased Asset Utilization Freight Poste
Slide 30: TransCore Pro Rata Estimated Net Sales
TransCore Pio Rata Estimated Net Sales or 2008 Enabling Higher Value Applications
Slide 31: Intended Acquisition Financing
(Feper) Intended Acquisition Financing OApproximately $590 Million Cash Consideration @ $10 Million Equity Consideration @ Within Roper’s Historic Pricef/EBITDA Acquisition Range OUnderwritten Senior Credit Facility @ Spreads Lowered from 200 Bpts to Expected 125-150 Bpts ™@ Capacity Increased; Stru
Slide 32: TransCore: A Great Addition to Roper
(Feper) TransCore: A Great Addition to Roper Q TransCore Enjoys Roper-Type Margins @ 20% EBITDA Margins @ High Leverage on Incremental Sales QO Acquisition Enhances Free Cash Flow QO Immediately Accretive to Earnings and Growth Q Substantial Recurring Revenue and Earnings Q RFID High Value Added App
Slide 33: Roper Industries, Inc.
all per Industries, Inc.
Slide 34: Reconciliations
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Slide 35: Roper Industries, Inc.
all per Industries, Inc. eeu
Roper Industries — Merger or Acquisition (October 2004) on 6ix