Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Roper Industries — Q3 2004 Earnings Presentation
28 slides from Roper Technologies's earnings presentation, Oct 29, 2004
Slide 1: Third Quarter 2004 Financial Results Conference Call
all per Industries, Inc. Third Quarter 2004 | ROPER | Financial Results Conference Call October 29, 2004
Slide 2: Safe Harbor Statement
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, among others, statements regarding our proposed acipisiton of TransCore the acquistion), the tenn of ou
Slide 3: Third Quarter Overview
Third Quarter Overview QO Achieved Record Financial Results * Net Sales, Net Earnings, EBITDA * Last Year Included Both 7/31 and 9/30 Quarter Ends QO Successfully Executing Growth Strategy * NTGH (Acquired December 2003) Performing Well * Integration of Power Generation Business (Acquired in Q2 2004
Slide 4: Strong Third Quarter Results
Strong Third Quarter Results (Millions) [ Net Sales | Net Earnings | Cash From Operations $240 $36 S12 $27 $18 $21 +68% = 93203 © Q3 2004 932003 3.2004 32003 © 3.2004 Record Orders DEPS Grew to a Record 130% Conversion of and Sales $0.73 (ws, $0.56 in ‘03) Net Earnings DEPS means Diluted Earnings pe
Slide 5: Record DEPS, Even Better Cash Results
Record DEPS, Even Better Cash Results $0.95 $0.73 Q3 2004 Q3 2004 DEPS Cash from Operations per Share Per share figues include quarterly average of 37.7 million shares.
Slide 6: Operating Results Continue to Strengthen
(Roper) Operating Results Continue to Strengthen @stitions) Net Sales Income from Ops Operating Margin Net Eamings DEPS Net Orders Gaining L ge from Sequentially Improving Sales 2 Bedhdes NTGHinveniory revaluaticn cess. The Companyrepertd unadjusted: Inceme from Operations of $33 ition, Operating Ma
Slide 7: Expanding EBITDA Performance
Expanding EBITDA Performance (Millions) [EBITDA $56 $34 32003 Qs 04 gios @ @ EBITDA Margins Up ; _ 320 Bats to 23.2% Q3 EBITDA Annualized: $222 Million
Slide 8: Favorable Balance Sheet Trends
Favorable Balance Sheet Trends Dec. 31 Sep. 30 2003 As a Percent of Sales @ Inventory 13.5% ®) Receivables 18.5% @) Payables & Accruals 14.5% Total (+R-P) 174% Total NWC 20.0% Net Debt-to-Net Cap 47.0% 2004 11.4% 17.7% 13.1% 15.9% 18.8% 40.5% Still More Opportuni: NWC as a % of Annualized Quarterly
Slide 9: Instrumentation
Instrumentation Actan Research * Antek # Integrated Designs * Lugitech = FAC * Struers = Usan Highlights Net Sales EBITD A/Op Profit 50.8 44.6 10.7 " . Q3'03 Q3'04 Q3'03 Q3 ‘04 O Orders Grew 22% + New Product Introductions + Strong End Markets Ol Net Sales Up 14% O Currency Pressures + Produced in E
Slide 10: Energy Systems and Controls
Energy Systems and Controls Compressor Controls * Metrix Instruments = Zetec Highlights O Orders +27%, +73% Ex-Gazprom + Restructuring in Q1 Focused Resources, Driving Enhanced Results + Favorable Market Conditions 1 Despite $6 Million Decline in Gazprom Revenues, Net Sales Increased Cl Integration
Slide 11: Industrial Technology
Industrial Technology Abel * AMOT * Carnell « Flaw Technology * Fluid Metering * Hansen * Neptune * Raper Pump Net Sales EBITD.A/Op Profit Highlights 100.7 QO Sales Up 133%, Orders Increased 153% 27.9 O Neptune Sales Grew Double-Digits Delays for Large Pump Projects Hurt Q3 vn 4 | + New Team Focused
Slide 12: Scientific & Industrial Imaging
Scientific & Industrial Imaging DAF « Gatan * Media Cybernetics * Phatametrics = Princeton Instruments * Qlmaging * Redlake Highlights Net Sales EBITD A/Op Profit QO Orders Increased 11%, Sales Up 8% OQ Organic Order Growth Flat Due to a6 458 Performance of Camera Business + Physical Science OEM Ini
Slide 13: Fourth Quarter Earnings Dynamics
Fourth Quarter Eamings Dynamics Sarbanes-Oxley Completion Limited Gazprom Activity Strong Oil & Gas Markets Currency Conversion (Mix) Delayed Imaging Project OoOoododoo Wastewater Project Timing
Slide 14: Full Year 2004 Guidance
Full Year 2004 Guidance Net Sales DEPS' $2.58 - Millions $940-$945 $2.70 $657 $2.01 ™ one - 2 2003 DES ecdudes dds ecinguihment costs and Ascension 6 20UUDEPS exe NOH seve reraunen css anny ales nthe iin ef Trans ere Molings and dated fnminginiav 14
Slide 15: 2004 Cash Performance
(Roper) 2004 Cash Performance Cash from Ops Miiltions $150- $160 $3.99 — $4.26 per share (diluted) Focus on Cash Producing Record Results Excludes discontinued ops, and debt extinguishment and NTGH inventory revaluation costs Pershave figures assure average of 37.6 rallion shares. 15
Slide 16: Dramatically Shaping the Portfolio
Dramatically Shaping the Portfolio Net Sales (Millions) Primary Businesses ‘Acquired After 2000 MH Businesses Acquired After 2000 Acquired After 2000 Petrotech, IDI, Gazprom. Other Businesses Owned Since 2000 Af Struers $940. ZETEC $945 $504 * Great Cash Retums + Favorable Markets + Clear Growth Pat
Slide 17: Acquisition of TransCore
Acquisition of TRANECORE Q Another Strategic Growth Platform * RFID and SatCom Technologies * Proven Expertise in High Growth Applications QO Typical Roper Business * Engineered Solutions * Market Leader « High Margins, Cash Flow QO) Financially Compelling * Significant Sales, EBITDA and Cash Flow C
Slide 18: TransCore Proven Management Team
TRARBCORE Proven Management Team Transportation & Technology Experience John Worthington 28 Years John Simler 17 Years coo CFO Kelly Gravelle 20 Years Chief Technology Officer Patrick Conley Chief Software Officer 26 Years David Sparks 99 Years ‘orporate Development George McGraw 26,Yeun 18
Slide 19: TransCore Growth
(Roper) TRANSCORE Growth Net Sales (Millions) $338 Growth Supported by Technology Development & Strategic Investments Barriers to Entry O Long-Term Relationships, Contracts O Broadest Product and Services Offering O Application Expertise ‘Tomson eel yeas end onthe Fanay 31foloing he end ofthe cal yo
Slide 20: Existing Growth Market Applications
Slide 21: Leveraging Technology and Applications Expertise
= i ==! = Leveraging Technology and Applications Expertise 21
Slide 22: a Ss
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Slide 23: Advanced RF Tag & Reader Features
(Roper) Advanced RF Tag & Reader Features Oooooooo Read/Wnite Capabilities Low Battery...NO Battery Multi-Protocol High-Speed Reading Tamper-Resistant Tags Programmable Tags Greater Reading Range Encryption Features Soon to Be Released Leading Technology 23
Slide 24: Technology & Capability Synergies
(Roper) Technology & Capability Synergies O Automated Meter Reading + RF Technologies + Solution Support Teams + Commercial Monitoring O Imaging RFID + Access to Global Security Satellite Communications Channels Software + Advanced Solution Applications Expertise Collaboration + Low-Light and Motion
Slide 25: TransCore: A Compelling Addition to Roper
TransCore: A Compelling Addition to Roper C) TransCore Enjoys Roper-Type Margins + High Leverage on Incremental Sales O Acquisition Enhances Free Cash Flow + Low Asset Intensity O Substantial Recurring Revenue and Earnings Q RFID High Value Added Applications Drive Growth + Existing Business + Prove
Slide 26: Summary
Summary QO) Initiatives Driving Organic Sales & Order Growth QO) Operational Execution Delivering Cash QO Sequential Results Improving Throughout 2004 QO) Working Capital Velocity Increasing QO) Acquisition Integration Exceeding Plan Q Platform Expansion Enhanced with TransCore QO) Strengthening the
Slide 27: Appendix
all per Industries, Inc. Ope! Appendix
Slide 28: Reconciliations and Definitions
Reconciliations and Definitions Stone ast Sot A rns ty eta eae edit, ra 28