Goldman Sachs Presentation November 3, 2016 Safe Harbor Statement - PowerPoint PPT Presentation

Roper Technologies, Inc. Goldman Sachs Presentation November 3, 2016

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 operating results, the success of our internal operating plans, and the prospects for newly acquired businesses to be integrated and contribute to future growth, profit and cash flow expectations. Forward-looking statements A Diversified Growth Company may be indicated by words or phrases such as "anticipate," "estimate," "plans," "expects," "projects," "should," "will," "believes" or "intends" and similar words and phrases. These statements reflect management's current beliefs and are not guarantees of future performance. They involve risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement. Such risks and Click to edit Master title style uncertainties include our ability to integrate our acquisitions and realize expected synergies. We also face other general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions, unfavorable changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, difficulties in making and integrating acquisitions, risks associated with newly acquired businesses, increased product liability and insurance costs, increased warranty exposure, future competition, changes in the supply of, or price for, parts and components, environmental compliance costs and liabilities, risks and cost associated with asbestos related litigation and potential write-offs of our substantial intangible assets, and risks associated with obtaining governmental approvals and maintaining regulatory compliance for new and existing products. Important risks may be discussed in current and subsequent filings with the SEC. You should not place undue reliance on any forward- looking statements. These statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events. We refer to certain non-GAAP financial measures in this presentation. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures can be found within this presentation. 2

Creating Shareholder Value Strategy Results Software and Engineered Products & Services Significant Growth Platforms for Diverse Niche Markets • Leadership in Favorable Markets • Diverse End Markets, Broad Customer Base High Gross Margins Recurring Revenue Strong Operations Management Outstanding Cash Flow/Conversion • Strong and Sustainable Margins • High Incremental Operating Profit Superior Operating Profits Excess Free Cash Flow Strategic Reinvestment of Cash Cash Deployment Creates Value • Internal Growth Initiatives • Disciplined Acquisitions and Successful Integration R&D, Internal Growth, Acquisitions Significant Growth; Compelling Cash Flow 3

Total Shareholder Return Comparison of Cumulative Total Shareholder Return Roper Technologies, Inc. S&P 500 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 IPO '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16* Note: Chart depicts $100 invested in IPO vs. S&P 500 *2016 as of 10/31/2016 A Proven Growth Strategy 4

Roper Technologies Today » Diversified Technology Company • Focused, Independent Businesses with Leadership Positions in Niche Markets • 61% Gross Margin; 35% EBITDA Margin • Asset Light Model; ~1% Cap Ex / Sales; Low Working Capital • ~75% of EBITDA from Medical and RF Tech/Software Segments • 50%+ Recurring Revenue » Powerful Cash Flow Engine Drives Capital Deployment • Free Cash Flow: 25% of Revenue; 135% Conversion Over the Past 13 Years • Capital Deployment Exceeds Cash Flow • Acquire Companies that Generate Excess Free Cash Flow for Future Capital Deployment Compounding Cash to Drive Shareholder Value 5

Governance Process Enhances Growth and Drives Financial Discipline » Operating Reviews with Detailed Performance Analysis » Break-Even Analysis Drives Better Decision Making » Sales & Operating Leverage; Working Capital Efficiency » Incentives Tied to Continuous, Sustained Performance Improvements; Not Budget-Based » Product, Placement, Hit Rate Analysis » Cash Return on Investment Metrics Governance Process Drives Highly Scalable Business System 6

CRI Discipline Drives Cash Flow Cash Earnings ash C Net Income + D&A – = A Diversified Growth Company Maintenance Cap-Ex eturn on R Gross Investment nvestment I Click to edit Master title style Net Working Capital* + Net PP&E + Accumulated Depreciation » Common Metric throughout Roper Businesses » Focuses Businesses on Cash Flow Growth & Disciplined Asset Investment » Encourages Internal Growth Using Current or Reduced Assets » CRI is Highly Correlated to Market Valuation *Net Working Capital Excludes Cash, Short Term Debt and Taxes 7

Sales Growth & Margin Expansion In $ Millions Revenue* 0.55 0.65 0.5 61.6% $3,735 60.7% $3,552 $3,593 Gross 59.3% 58.6% 0.6 $3,272 0.45 Margin* $3,003 56.0% $2,797 54.2% 0.4 0.55 EBITDA 32.8% 33.8% 34.6% 34.5% Margin* 0.35 0.5 30.8% 28.7% 0.3 0.45 0.25 0.2 0.4 2011 2012 2013 2014 2015 TTM 2011 2012 2013 2014 2015 TTM 2016 2016 Outstanding Leverage Driven by Execution and Growth *Figures are Provided on an Adjusted Basis, See Appendix for Reconciliation from GAAP to Adjusted Results 8

Compelling Cash Conversion $1,000 In $ Millions $900 » Free Cash Flow Has $800 GAAP Net Income Free Cash Flow* Exceeded Net Income $700 for 18 Consecutive $600 Years $500 » Expect ~140% Free $400 Cash Flow Conversion $300 in 2016 $200 $100 $0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 $1.0 Billion $2.4 Billion $2.5 Billion Cumulative (5 years) (5 years) (3 years) Free Cash Flow Cash Flow Consistently Greater Than Net Income *Free Cash Flow = Operating Cash Flow – Capital Expenditures 9

Q3’16 TTM Results In $ Millions TTM Revenue TTM EBITDA TTM Operating Cash Flow +7% +10% +23% $3,735 $999 $1,290 $3,593 $1,239 $3,493 $921 $1,173 $815 Q3'14 Q3'15 Q3'16 Q3'14 Q3'15 Q3'16 Q3'14 Q3'15 Q3'16 Consistent Growth Despite O&G Headwinds 10 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation for reconciliations from GAAP to Adjusted results.

Q3’16 TTM Segment Performance In $ Millions $1,336 $1,163 A Diversified Growth Company $710 Revenue $526 Click to edit Master title style $585 $444 EBITDA* $222 $156 Energy Ind Tech RF & Software Medical EBITDA* 30% 31% 38% 44% Margin • Control Software • Data Collection / • Electronic Tolling • Medical Software • Sensors Metering Technology • SaaS Solutions and Services • Instrumentation • Fluid Handling • Software Applications • Medical Products • Instrumentation • RF Products • Life Sciences * Excludes Corporate Expenses 11 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation for reconciliations from GAAP to Adjusted results.

Medical Solutions Medical Software / Services (~45% of Segment Revenue) Q3’16 TTM Segment Revenue » Leading Provider of Laboratory Software Solutions for Large Hospitals, IDNs, and Anatomic Pathology A Diversified Growth Company » Leading Provider of Services and Technologies to Alternate Medical Site Healthcare Markets Medical Products Software » SaaS Data Analytics and Application Software for Hospital & Services Cost Improvement and Post-Acute Markets Click to edit Master title style Scientific Medical Products (~35% of Segment Revenue) Imaging » Ultrasound & Intubation Devices for Hospitals, Acute Care, Urology » Minimally-Invasive Surgical Products and Consumables Roper Q3’16 TTM Segment EBITDA » Patient Positioning Devices for Medical Imaging and Radiation Oncology » Automated Surgical Scrub Dispensing Equipment Scientific Imaging (~20% of Segment Revenue) » Cameras, Filters and Accessories for Life Science Microscopy and Physical Science Spectroscopy Applications Medical RF Ind Energy 12 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation for reconciliations from GAAP to Adjusted results.