Slide 1: Calendar Third Quarter 2003 Results Conference Call
Calendar Third Quarter 2003 Results Conference Call October 27, 2003
Slide 2: Safe Harbor Statement
Safe Harbor Statement (Peper) ‘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 acquisition of Neptune Technology Group Holdin
Slide 3: Record Calendar Q3 Performance
Record Calendar Q3 Performance * Net Sales Up 8% Over the Prior Year Period to $172 Million — Excluding Gazprom and 2002 Acquisitions, Net Sales Increased 9% — $8 Million Lower Net Sales to Gazprom — Second Consecutive Quarter of Organic Growth (Exel. Gazprom) ¢ Gross Profit Up 9% to $93 Million ¢ I
Slide 4: Calendar Third Quarter Highlights
Calendar Third Quarter Highlights (Foper) * Diluted EPS (DEPS) from Continuing Operations of $0.62 — Up 27% Versus $0.49 in the Prior Year ~ $1 Million of Restructuring Charges in the Current Year Quarter * Net Debt-to-Net Cap Reduced to 38.3% — Down from 45.2% at the Beginning of the Calendar Year
Slide 5: Calendar Third Quarter Highlights
Calendar Third Quarter Highlights (Foper) * Sale of Petrotech Completed — Eliminates Discontinued Operations in August + Restructuring Initiatives Nearing Completion — Mexican Operations Underway. ..Formal Opening This Week — Expect to Complete Most Actions by Yearend * Operating Margin of 19.5% Bef
Slide 6: Third Quarter Demonstrates Powerful Earnings Model
Third Quarter Demonstrates Powerful Earnings Model (Millions) 3 ‘03 ~O3 ‘02 Increase Net Sales $172.1 $159.3 $12.8 +8.0% Income from Operations $32.5 $27.4 $5.1 +18.6% Restructuring Costs 1.6 - 1.6 Adjusted Income from Operations $33.5 $27.4 $6.1 +22.3% Incremental Benefit ned for Stronger Results a
Slide 7: Income Statement
Income Statement (Foper) (Thousands) a3 03 2003 2002 ¥r-Yr Comments Net Sales si72,064 sisoes * 78% + Strength in Oil & Gas Projects and Imaging Gross Profit $93,170 $85,332 ; . Zam stem + Grass Margin Expansion Income from Operations 240 Hass Peint Gain in Operati Before Restructuring $33,549 $27,4
Slide 8: Balance Sheet, Cash Flow
Balance Sheet, Cash Flow (Foper) (Miltions) Q3 2003 EBITDA $36.3 Percent of Net Sales 21.1% Excluding Restructuring 21.7% EBITDA-to-Interest 9.0X Q3 2002 $31.4 + Improved 16% Yr-Yr, Even Affer $1 Million of 19.7% Restructuring Costs 19.7% 6.7X + Coverage Ratio Based on Quarterly Results Q3 2003 Net
Slide 9: Energy Systems and Controls
Energy Systems and Controls (per) Compressor Controls * Metrix Instruments = Zetec Highlights $41.6 * Net Orders Up 17% Excluding Gazprom * Orders from Gazprom Down 31% — $8 Million Less Sales to Gazprom « Strong Oil & Gas Project Net Sales « Zetec Seasonally Strong in Q3 Q3 2003 Q3 2002 = Operating
Slide 10: Industrial Technology
Industrial Technology (oper) Abel Pump * AMOT « Carnell Pump * Flaw Tech. * Fluid Metering * Hansen * Raper Pump Highlights « Net Orders Up 8% = Water/Wastewater Project Timing ~ Expect Strong Q4 Sales = Started Mexican Operations ~ Shipping to Customers — Analyzing Sourcing Opportunities « Abbott D
Slide 11: Instrumentation
Instrumentation (Foper) Actun Research * Antek « Integrated Designs * Lugitech = FAC * Struers * Usan Highlights * Net Orders Up 2% Despite Difficult $44.6 $44.3 Telecom and Semiconductor Markets " Net Sales Up for Second Consecutive Quarter = Restructuring Activities Completed ~ Acton/IDI Margins U
Slide 12: Net Sales and DEPS from Continuing Operations
Net Sales DEPS (Millions) from Continuing Operations $650+ “m 1 $2.00+ ' a 2003E 2003E ‘TS 1 Included $52M in Sales to Gazprom. ? Assumes $6-$6.5 Million of Costs, the Current Effective Tax Rate and 32 Million Shares.
Slide 13: Expenditures
Expenditures + High Inventory Turns Automatic Meter Reading (AMR) Rugged/Portable Instruments Software Protocol Consultative Selling FES Product Development AMR Growth DAP Growth Software Applications + Excess Cash
Slide 14: Four Growth Businesses
Four Growth Businesses ‘Water AMR AMR net sales doubled since ‘99 89% of total water AMR. market still untapped Rapid growth ‘Water Meters + 27 million installed residential water meters in North America + 2/9 of sales from meter replacements, upgrades + Steady growth Snftware Software for meter rea
Slide 15: NTG Holdings: Consistent Revenue Growth
16 NTG Holdings : Consistent Revenue Growth (roper) 200 (© = Periods of Economic Recession Neptune Net Saies ($Millinns) 25 1972 1977 1982 1987 1992 1997 2002
Slide 16: Acquisition Enhances Roper's Balanced Diversification
Acquisition Enhances (Foper) Roper’s Balanced Diversification Semicon, Refrigeration #0) 2002 Roper + Neptune Technology 2002 Roper " ~ Genin Group Holdings ‘1992 Roper Note: 19? sn 2002 rec Sel yer cuter nk sles at by ed ace 207 ceeds Reps a year ata comin wh 17 Nephme's calendar year dst
Slide 17: Summary
18 Summary (pe) Strong Performance in the Third Quarter Records: Net Sales: $172 Million +8% Gross Profit: $93 Million +9% Income from Ops (Excl. Restructuring): $34 Million +22% Eamings from Con’t Ops of $20 Million +28% Other Growth Metrics: + Organic Net Sales (Ex-Gazprom) +9% + Op Margin Grew to
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Slide 19: Appendix
Appendix
Slide 20: Reconciliations and Definitions
Reconciliations and Definitions (Foper) (Amounts in $Thousands) 3 2008 a3 2002 Roperinducties, Ina EBITDA Net Eamings 17873 518228 Remove: Loss From Discontinued Operations 1812 242 ‘Aad intrest Expense 4018 ae, ‘Aad: noome Taxes a9 6.054 ‘Add: Depreciation and Amortization 407 azz Equals: EBITDA 36