Roper Technologies, Inc. · NASDAQ:ROP

Roper Technologies — Barclays Conference 2020

15 slides from Roper Technologies's conference presentation, Feb 19, 2020

  1. Slide 1: Roper Technologies Overview

    A DIVERSIFIED TECHNOLOGY COMPANY ROPER TECHNOLOGIES OVERVIEW BARCLAYS CONFERENCE FEBRUARY 19, 2020 SIMPLE IDEAS. POWERFUL RESULTS.

  2. 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 may include, among others, statements regarding operating results, the success of our internal operating plans,

  3. Slide 3: Roper Technologies Today

    ROPER TECHNOLOGIES TODAY • Diversified Technology Company – ~45 Independent Businesses with Leadership Positions in Niche Markets – Diverse Mix of End Markets; Software & Products; Limited Cyclical Exposure – Strong Recurring Revenue and Customer Retention – Highly Profitable: 64% Gross Margin, 36%

  4. Slide 4: Focus on Generating Long-Term Shareholder Value

    FOCUS ON GENERATING LONG-TERM SHAREHOLDER VALUE CUMULATIVE TOTAL SHAREHOLDER RETURN (IPO – 2019) Roper Technologies, Inc. S&P 500 $22,000 TOTAL SHAREHOLDER RETURN (2003 - 2019) $20,000 $18,000 $16,000 $14,000 $12,000 1,483% $10,000 $8,000 $6,000 304% $4,000 S&P 500 ROP $2,000 $0 IPO '93 '95 '97 '99

  5. Slide 5: Roper Business Model

    ROPER BUSINESS MODEL Decentralized Centralized Capital Business Type Operating Structure Deployment • Niche • Nimble execution • CRI-driven (“Money • #1 or #2 • Local resource allocation Ball”) • Compete on customer decisions • Strategy centered on intimacy, not scale • Decentralized, not passive bu

  6. Slide 6: Governance Process Enhances Growth and Drives Financial Discipline

    GOVERNANCE PROCESS ENHANCES GROWTH AND DRIVES FINANCIAL DISCIPLINE • CRI Focus • Group Executives Provide Strategic Leadership for Businesses • Product, Placement, Hit Rate Analysis • Consistent and Rigorous Strategy Deployment • Talent Acquisition and Development • Operating Reviews with Detailed P

  7. Slide 7: Consistent Compounding and High Cash Conversion

    CONSISTENT COMPOUNDING AND HIGH CASH CONVERSION REVENUE (1) EBITDA (1) $5,199 $5,377 $1,925 $4,665 $1,806 $1,605 $3,552 $3,593 $3,805 $1,315 $3,272 $1,201 $1,245 $3,003 $1,074 56.0% 58.6% 59.3% 60.7% 61.7% 62.6% 63.2% 63.9% $925 32.8% 33.8% 34.6% 34.6% 34.4% 34.7% 35.8% 30.8% 2012 2013 2014 2015 201

  8. Slide 8: Asset-Light Business Model

    ASSET-LIGHT BUSINESS MODEL NET WORKING CAPITAL (1) (2) AS % OF Q4 ANNUALIZED REVENUE Q4’16 Q4’17 Q4’18 Q4’19 (I) Inventory 4.6% 4.2% 4.1% 3.6% 2.7% (R) Receivables 16.3% 16.0% 16.7% 17.8% (P) Payables & 10.9% 12.0% 11.9% 11.6% Accruals (3.3)% (3.4)% (D) Deferred 7.2% 11.4% 12.2% 15.1% (5.3)% Revenue

  9. Slide 9: Segment Overview

    SEGMENT OVERVIEW APPLICATION SOFTWARE NETWORK SOFTWARE & SYSTEMS 30% of Roper 2019 Revenue 29% of Roper 2019 Revenue $1,589 67% $1,539 69% 40% 44% $636 $681 Adjusted EBITDA Gross EBITDA Adjusted EBITDA Gross EBITDA Revenue Margin Margin Revenue Margin Margin Businesses: Aderant, CBORD, CliniSys, Dat

  10. Slide 10: Disciplined Acquisition Strategy Focused on High Quality Targets

    DISCIPLINED ACQUISITION STRATEGY FOCUSED ON HIGH QUALITY TARGETS • We Only Seek Targets with High CRI Business Models; Primarily Software and Networks • Acquisitions Funded by Excess Cash Flow and Investment Grade Debt • Leaders in Niche Markets with Sustainable Competitive Advantages • High Margin,

  11. Slide 11: 2019 Summary and 2020 Outlook

    2019 SUMMARY AND 2020 OUTLOOK • Another Excellent Year for Roper – EBITDA +7% to $1.93B; Margin +110 Bps to 35.8% – DEPS +10% to $13.05 – Free Cash Flow +5% to $1.44B; 27% of Revenue – Deployed $2.4B Toward High-Quality Software Acquisitions; Completed Divestitures of Gatan and Scientific Imaging Bu

  12. Slide 12: Appendix

    APPENDIX

  13. Slide 13: Reconciliations I

    RECONCILIATIONS I Adjusted Revenue, Gross Profit and EBITDA Reconciliation ($M) FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 Adjusted Revenue Reconciliation GAAP Revenue $ 2,993 $ 3,238 $ 3,549 $ 3,582 $ 3,790 $ 4,607 $ 5,191 $ 5,367 Purchase accounting adjustment to acquired deferred revenue 9 7

  14. Slide 14: Reconciliations II

    RECONCILIATIONS II Adjusted Cash Flow Reconciliation ($M) FY'12 FY'13 FY'14 FY'15 FY'16 FY'17 FY'18 FY'19 Operating Cash Flow $ 678 $ 803 $ 840 $ 929 $ 964 $ 1,234 $ 1,430 $ 1,462 Add: Cash taxes paid on sale of divested businesses - - - - 37 - - 39 Adjusted Operating Cash Flow $ 678 $ 803 $ 840 $ 9

  15. Slide 15: A Diversified Technology Company

    A DIVERSIFIED TECHNOLOGY COMPANY

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