Q1 2018 Financial Results April 20, 2018 Safe Harbor Statement The - PowerPoint PPT Presentation

A Diversified Technology Company Q1 2018 Financial Results April 20, 2018

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, 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 uncertainties include our ability to identify and complete acquisitions consistent with our business strategies, Click to edit Master title style integrate acquisitions that have been completed, realize expected benefits and synergies from, and manage other risks associated with, the newly acquired businesses. We also face general risks, including our ability to realize cost savings from our operating initiatives, general economic conditions and the conditions of the specific markets in which we operate, changes in foreign exchange rates, difficulties associated with exports, risks associated with our international operations, 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

Reg. G Disclosure Today’s Conference Call Will Discuss Results Primarily on an Adjusted (Non-GAAP) Basis. The Q1 2018 Results are Adjusted for the Following Items: A Diversified Growth Company (1) Acquisition-Related Intangible Amortization Expense Click to edit Master title style (2) Purchase Accounting Adjustment to Acquired Deferred Revenue See Appendix and Press Release for Reconciliation from GAAP to Adjusted Results 3

Roper Conference Call » Q1 2018 Enterprise Financial Results A Diversified Growth Company » Segment Detail & Outlook » Q2 and FY 2018 Guidance Click to edit Master title style » Q&A 4

Q1 2018 Enterprise Highlights » Record First Quarter Results » Revenue +9% to $1.20B; Organic +6% – Broad-Based Growth; All Segments Grew MSD or Greater » Gross Margin +30 Bps to 62.5% » Earnings Before Taxes +10% to $332M » DEPS +24% to $2.61 » Operating Cash Flow of $282M; 23% of Revenue » Reduced Debt by $535M in Q1; $1.6B Since December 2016 Great Q1; Outstanding Execution Across the Enterprise 5 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation and press release for reconciliations from GAAP to Adjusted results.

Q1 Income Statement Metrics Q1’17 Q1’18 (in $ millions, except Adjusted DEPS) Revenue $1,108 $1,205 +9%, Organic +6% A Diversified Growth Company Gross Profit $689 $753 Gross Margin 62.2% 62.5% +30 bps Click to edit Master title style EBITDA $362 $389 EBITDA Margin 32.7% 32.3% Interest Expense $46 $43 Earnings Before Taxes $303 $332 +10% Tax Rate 28.2% 18.1% Net Earnings $218 $272 Adjusted DEPS $2.11 $2.61 +24% 6 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation and press release for reconciliations from GAAP to Adjusted results.

Asset-Light Business Model Net Working Capital* as % of Q1 Annualized Revenue 3/31/16 3/31/17 3/31/18 (750) Bps (I) Inventory 5.5% 4.4% 4.5% 4.8% (R) Receivables 17.4% 16.0% 16.4% (P) Payables & 10.6% 11.5% 11.5% Accruals (D) Deferred 7.5% 11.8% 12.1% Revenue (2.9)% (2.7)% Total (I+R-P-D) 4.8% (2.9)% (2.7)% 2016 2017 2018 ($ Millions) $275 $514 $585 Deferred Revenue * Defined as Inventory + A/R + Unbilled Receivables – A/P – Accrued Liabilities – Deferred Revenue; Excludes Acquisitions Completed in Each Quarter and Dividend Accrual Deferred Revenue Continues to Grow; Provides Source of Cash 7 Notes: Percentages may not sum correctly due to rounding.

Compounding Cash Flow TTM Q1 2018 » Year Over Year Cash Flow Impacted by: Operating Cash Flow Conversion (in $ millions) – Timing of Tax Payments in 2018 141% – TransCore MTA Project in 2017 » Q1 Operating Cash Flow: $282M 111% – 23% of Revenue » Q1 Free Cash Flow: $270M – 22% of Revenue Adjusted GAAP Net Earnings Net Earnings* Free Cash Flow = Operating Cash Flow less Capital Expenditures and Capitalized Software * Excludes one-time $215 million net gain resulting from the Tax Cuts and Jobs Act, see reconciliation in appendix On Track for Record 2018 Cash Performance 8 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation and press release for reconciliations from GAAP to Adjusted results.

Strong Financial Position 3/31/17 3/31/18 V to PY (in $ millions) $731 $366 Cash $940 $1,765 Undrawn on $2.5B Revolver +$825 Gross Debt $5,841 $4,622 ($1,219) Net Debt $5,110 $4,256 $1,370 $1,631 TTM EBITDA +$261 4.3x 2.8x Gross Debt-to-EBITDA (TTM) 3.7x 2.6x Net Debt-to-EBITDA (TTM) Deleveraged Rapidly; Enhances Capacity for 2018 Capital Deployment 9 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation for reconciliations from GAAP to Adjusted results.

Segment Detail & Outlook 10

TTM Q1 2018 Segment Margins 72% 63% A Diversified Growth Company 57% 50% Gross Margin Click to edit Master title style 42% 38% EBITDA 32% 31% Margin* Energy Ind Tech RF & Software Medical & Imaging TTM = Trailing Twelve Months * Excludes Corporate Expenses 11 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation and press release for reconciliations from GAAP to Adjusted results.

RF Technology & Software Q1 Highlights (40% of Roper Revenue) » Organic +4%, FX +1% Q1’18 V to PY (in $ millions) » LSD Toll and Traffic Growth; Continued A Diversified Growth Company Revenue $484 +7% Strong Project Execution Op Profit $123 +13% » Deltek Software Growth Across GovCon and OP Margin 25.4% +130 bps Professional Services Markets; Recent Bolt- Click to edit Master title style EBITDA $172 +11% On Acquisitions Performing Well » ConstructConnect Bolt-Ons Expand Pre- Q2-Q4 2018 Construction Take-Off and Estimation » MSD Growth Continues for Software Software Capabilities (QuoteSoft, PlanSwift) Businesses with Strong Margin and Cash » Multiple Large Law Firm Wins for Aderant Performance Drove Share Gains and Double Digit Growth » Toll and Traffic Project Timing Remains » Outstanding Freight Match Growth Driven by Difficult to Forecast Net Subscriber Adds and Favorable Markets » 4 - 5% Organic Growth for Segment » RF IDeas Growth Aided by Adoption of Identity Access Management Solutions 12 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation and press release for reconciliations from GAAP to Adjusted results.

Medical & Scientific Imaging Q1 Highlights (30% of Roper Revenue) » Organic +4%, FX +2% Q1’18 V to PY (in $ millions) » Accelerating Adoption of Financial Decision A Diversified Growth Company Revenue $366 +5% Support Cloud Software at Strata; Kaiser Op Profit $121 +1% Permanente Adopts for National Cost OP Margin 32.9% (150) bps Accounting Program Click to edit Master title style EBITDA $150 Flat » Revenue Decline, as Expected, in Higher Margin U.S. Lab Business, Offset by Revenue Growth in Diagnostic Connectivity and Q2-Q4 2018 International Lab Solutions » Broad-Based Growth Across Medical » High Single Digit Growth in Software Solutions Businesses for Long-Term Care and Home Health » Scientific Imaging Continues to Improve (SoftWriters and SHP) » MSD Organic Growth for the Segment; » MSD Growth in Medical Product Businesses Lower Margins (~100 bps) » Strong Backlog Growth for Gatan; Commenced Shipping of Next Generation Cryo-EM Products 13 Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation and press release for reconciliations from GAAP to Adjusted results.