Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Roper Industries — Gabelli & Company 13th Annual Pump, Valve & Motor Symposium 2003
28 slides from Roper Technologies's conference presentation, Feb 6, 2003
Slide 1: Gabelli & Company 13th Annual Pump, Valve & Motor Symposium
Gabelli & Company, Inc. 13'h Annual Pump, Valve & Motor Symposium February 5, 2003
Slide 2: Safe Harbor Statement
Safe Harbor Statement (per) The information provided in this presentation, in Company filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended October 31, 2002, and in other press releases and public disclosures, contain forward-looking stateme
Slide 3: Proven Business Model
Proven Business Model (per) Engineered Content for Diverse Niche Markets ig ig HIGH GROSS MARGINS Strong Operations Management ig iB) SUPERIOR OPERATING PROFITS EXCESS FREE CASH FLOW Strategic Reinvestment of Cash ig ig! INTERNAL GROWTH AND ACQUISITIONS SHAREHOLDER VALUE CREATION
Slide 4: Driving Growth Throughout the Business Cycle
Driving Growth Throughout the (per) Business Cycle Net Sales (Millions) m Analytical Inst. Fluid Handling Ind. Controls 92 93 94 95 96 97 98 99 00 O01 02 Fiscal years ending October 31
Slide 5: Consistent EPS Growth
Consistent EPS Growth (Fper) Diversified Industrial Growth Company $1.77, 92 93 94 95 96 97 98 99 00 O01 02
Slide 6: Producing Significant Cash Flow
Producing Significant Cash Flow (reper) (Millions Strong Growth Expected in 2003 $50 gag
Slide 7: Supporting Growth With R&D Investments
Supporting Growth With R&D Investments (Millions) $30 92 93 94 95 96 97 98 99 00 01 02
Slide 8: Disciplined Acquisition Process
Disciplined Acquisition Process (reper) * Active Deal Pipeline + Strict Screening Process — Engineered Content — High Gross Margins ~ Favorable Financial Results — Margin Improvement and Clear Revenue Growth — Financial Bolt-Ons or Strategic Platforms + Disciplined Due Diligence & Pricing * Establis
Slide 9: Adding Value to Acquisitions
Adding Value to Acquisitions * Align Incentives » Metrics/Ratio Expectations » Working Capital Awareness + Distribution Channel Effectiveness » Pricing/Customer Values * Sourcing/Manufacturing Discipline Improving Acquired Company’s Performance
Slide 10: Acquisition History
Acquisition History (reper) '90 '91 '92 '93 '94 '95 '96 '97 ‘98 '99 '00 ‘01 ‘02 Fluid Handlin poner Abel Industrial Controls Analytical Instrumentation Industrial Pumps Semiconductor Equip. Flow Metering Ind. Valves & Controls Control Systems Non-Destructive Test Fluid Properties Test Industrial Lea
Slide 11: Staying Ahead of the Curve
Staying Ahead of the Curve (pe) 1997: Created Segment Management Structure —Improve Operational Focus *2001: Created Business Development Team ~Increase Transactional Capabilities *2002: Expanded Management Team ~Support Requirements of Growing Enterprise ~ Drive Enterprise Effectiveness * 2002: Dev
Slide 12: New Alignment
11 New Alignment (per) Focus on Customers, Markets, Channels, Costs Scientific & Energy Systems & Industrial Imaging Controls Industrial Technology Instrumentation 2002 Revenu
Slide 13: Strong Leadership Team
12 Strong Leadership Team (pe) The Right People in the Right Roles » Energy Systems and Controls - - Tim Winfrey * Industrial Technology - - Jim Mannebach * Instrumentation - - Will Crocker * Scientific and Industrial Imaging - - Ben Wood
Slide 14: New Structure
13! New Structure (Peper) Creates Opportunities -Customers & Markets ~Better Access to Customers ~More Solutions for Customers ~Improved Resource Allocation for Market Opportunities ~ Enhance the Power of the Brands »Channels ~ Coordinate Efforts to Broaden Global Reach *Costs ~ Better Economies of
Slide 15: Instrumentation
14 Instrumentation Key Brand Centers + Acton Research -Logitech + Antek *PAC * Gatan *Struers + IDI *Uson Primary Products & Solutions for + Specimen and Sample Preparation +» Electron Microscopy + Leak Testing + Fluid Properties Testing + Precision Dispensing + Optical Measurement (Millions) 2000 N
Slide 16: Instrumentation: Common Competencies
15 Instrumentation Common Competencies +» Product Specification Drives End User Buying Decision + Operator Training and Ease of Use Creates Customer Value + Application Engineering Enhances Build to Order Product Performance + Customer Process Improvement Critical to Value Creation + Global Customer
Slide 17: Industrial Technology
Industrial Technology (per) Key Brand Centers Net Sales * Abel Pump * Fluid Metering Kaas) + AMOT Controls + Hansen +Cornell Pump — + Roper Pump + Flow Technology $171 Primary Products & Solutions aah + Rotating Machinery Controls & Sensors + Precision Dispensing Equipment + Refrigeration Valves & C
Slide 18: Industrial Technology: Common Competencies
17 Industrial Technology Common Competencies + Continued Focus on Lean Manufacturing + Capture Global Sourcing Opportunities +» Grow Aftermarket Sales in Mature Markets + Negotiate Effective OEM Contracts + Follow Customer Migration to Low Cost Production Areas While Maintaining Influence with Corpo
Slide 19: Energy Systems and Controls
18 Energy Systems and Controls Key Brand Centers » Compressor Controls » Metrix +» Petrotech + Zetec Primary Products & Solutions for + Pipeline and Process Control + Increasing Production Yields +» Testing Safety Regulation Compliance for Electric Utilities + Vibration Monitoring & Measurement + No
Slide 20: Common Competencies
19 Common Competencies + Software Creates Customer Value Through Monitoring and Measurement; Capacity Throughput and Utilization + Aftermarket Applications Require Direct Sales Involvement with End Customers + Service and Installation of Systems Requires Company Specific Knowledge ... Creates Strong
Slide 21: Scientific and Industrial Imaging
20 Key Brand Centers + Media Cybernetics + Qimaging + Redlake + Roper Scientific Primary Products & Solutions + High-Performance Digital Cameras + Imaging Systems + Image Analysis Software + Digital Motion Cameras Scientific and Industrial Imaging (pe) Net Sales (Millions) 2000 2001 2002 Motion Imag
Slide 22: Scientific and Industrial Imaging: Common Competencies
21 Scientific and Industrial Imaging (reper) Common Competencies Markets + Effective Relationships with Chip Suppliers Critical (Low Volume; High Complexity) + Producibility of Scientific Design + Calibration of Cameras + Reach Customers Through Complicated Distribution Channels + Maintain End Marke
Slide 23: Diversified Markets, Global Reach
Diversified Markets, Global Reach (per) $627 $627 Non-U.S. = Refrigeration Other Medical 58% of Revenues Latin Am, Russia Research Asia Power Gen Gen'l Industrial Europe Other Gazprom Oil&Gas 92 93 94 95 96 97 98 99 00 01 02 92 93 94 95 96 97 98 99 00 01 02 22 Net Sales (Millions)
Slide 24: Overcoming Challenges
23 Overcoming Challenges ™@ Net Sales from All Businesses Except Redlake and IDI ™ Net Sales from Redlake and IDI $425 2000 2001 2002 2000 (Millions) 2001 2002
Slide 25: Delivering Results
24 Delivering Results (pe) ™@ Operating EBITDA Contributions from All Businesses Except Redlake and IDI ™ Operating EBITDA Contributions from Redlake and IDI $144 $125 $97 Be, 2000 2001 2002 2000 2001 2002 (Millions)
Slide 26: Q1 2003 Major Events
25 Q1 2003 Major Events (pe) Overcoming Challenges *Gazprom Q1 Order Delay ~New Procurement Process ~ 2003 Contract Nearly Finalized *Downstream Oil & Gas Market Spending Deferrals ~ Geopolitical Impacts *Q1 Results Could Be Impacted by 15 Cents ~Primarily Due to Gazprom Delays *Conference Call on F
Slide 27: 2003 Priorities
2003 Priorities (per) Delivering Results » Achieve Record Results Despite Q1 Difficulty » Execute Disciplined Acquisition Process » Capture Benefits of New Structure * Focus on Customers and Markets to Further Strengthen Results, Especially in 2004 and Beyond 26
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