Q2 2018 Financial Results July 26, 2018 Safe Harbor Statement The - PowerPoint PPT Presentation

A Diversified Technology Company Q2 2018 Financial Results July 26, 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 Q2 2018 Results are Adjusted for the Following Items: A Diversified Growth Company (1) Acquisition-Related Intangible Amortization Expense (2) Purchase Accounting Adjustment to Acquired Deferred Revenue Click to edit Master title style (3) Recognition of Deferred Tax Expense Due to Held-For-Sale Classification of Gatan (4) Measurement Period Adjustment to 2017 Provisional Income Tax Amounts Resulting from the Tax Cuts and Jobs Act See Appendix and Press Release for Reconciliation from GAAP to Adjusted Results 3

Roper Conference Call » Q2 2018 Enterprise Financial Results A Diversified Growth Company » Segment Detail & Outlook » Q3 and FY 2018 Guidance Click to edit Master title style » Q&A 4

Q2 2018 Enterprise Highlights » Record Q2 Results: Revenue, Net Earnings, EBITDA, Cash Flow » Revenue +13% to $1.30B; Organic +9% – Broad-Based Growth Across All Segments » Gross Margin +40 Bps to 63.1% » EBITDA +14% to $449M; EBITDA Margin +30 Bps to 34.6% » DEPS +29% to $2.89 » Operating Cash Flow +55% to $266M » Deployed $1.1B to Acquire PowerPlan; Entered Agreement to Divest Gatan for $925M Outstanding Q2: Strong Growth, Margin Expansion and Record Cash Flow 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.

Q2 Income Statement Metrics Q2’17 Q2’18 (in $ millions, except DEPS) Revenue $1,151 $1,296 +13%; Organic +9% A Diversified Growth Company Gross Profit $722 $818 Gross Margin 62.7% 63.1% +40 bps Click to edit Master title style EBITDA $394 $449 +14% EBITDA Margin 34.3% 34.6% +30 bps Interest Expense $46 $43 Earnings Before Taxes $336 $392 +17% Tax Rate 31.0% 23.1% Net Earnings $232 $302 DEPS $2.24 $2.89 +29% 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.

Compounding Cash Flow Q2 Operating Cash Flow (in $ millions) » Q2 Operating Cash Flow: $266M +55% $266 – +55% vs Prior Year » Q2 Free Cash Flow: $250M – +57% vs Prior Year $172 » TTM Operating Cash Flow: $1.23B – 25% of Revenue 2017 2018 Free Cash Flow = Operating Cash Flow less Capital Expenditures and Capitalized Software Remain On Track for Record 2018 Cash Performance 7 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 (1)(2) as % of Q2 Annualized Revenue Q2 Deferred Revenue (2)(3) (in $ millions) 6/30/16 6/30/17 6/30/18 $627 (I) Inventory 5.1% 4.4% 4.3% $516 (R) Receivables 16.9% 15.9% 16.4% $281 (P) Payables & 10.6% 11.3% 10.9% Accruals (D) Deferred 7.5% 11.4% 11.7% Revenue 2016 2017 2018 Total (I+R-P-D) 3.9% (2.4)% (1.9)% 1) Defined as Inventory + A/R + Unbilled Receivables – A/P – Accrued Liabilities – Deferred Revenue; Excludes Acquisitions Completed in Each Quarter and Dividend Accrual. 2) Includes Gatan’s assets and liabilities that have been classified as held-for-sale on Roper's balance sheet. 3) Ending balance as of June 30 th . Negative Net Working Capital; Sustainable Transformation 8 Note: Percentages may not sum correctly due to rounding.

Segment Detail & Outlook 9

Q2 2018 Segment Margins 71% 64% A Diversified Growth Company 58% 51% Gross Margin Click to edit Master title style 42% 39% 34% EBITDA 31% Margin* Energy Ind Tech RF & Software Medical & Imaging * Excludes Corporate Expenses 10 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 Q2 Highlights (42% of Roper Revenue) » Organic +7%, FX +1% Q2’18 V to PY » (in $ millions) Deltek Delivered Double Digit Growth and A Diversified Growth Company Revenue $539 +13% Great Operating Leverage Op Profit $159 +19% – Outstanding Execution in Enterprise and OP Margin 29.6% +140 bps SMB Across Both GovCon and Professional Services Software Markets Click to edit Master title style EBITDA $212 +16% – Large Wins Delivered in the Quarter » Freight Match Strong Execution with Net 2 nd Half 2018 Subscriber Adds; Favorable Market Conditions » 4 – 6% Organic Growth for the Segment » CBORD Grew Subscriptions for Food and » Nutritional Software in Healthcare Markets Strong Growth and Cash Performance for Software Businesses » Toll and Traffic Grew LSD with Strong Project Execution and Double Digit Growth from » Toll and Traffic Grows Low Single Digits in Q3, Customer Service Center Business Stronger in Q4 on Timing of Tag Shipments » Completed Acquisition and Onboarding of PowerPlan; Another Industry-Leading, Niche Application Software Business 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.

PowerPlan Acquisition » Leading Provider of Software and Solutions for Asset-Centric Companies – Enhances Operational Efficiency, Supports Meets All Acquisition Criteria Tax Strategies, Mitigates Compliance Risk and Improves Cash Flow  Strong Cash Flow Characteristics » Strong Competitive Advantages with High  Asset Light Barriers to Entry  Excellent Management Team » Loyal, Diverse Customer Base with 98%+ Retention Rates  Niche Market Leader » Attractive Financial Model Focused on Growth  Deep Domain Expertise and Profitability  High Recurring Revenue – Multiple Drivers for Strong Organic Growth  Multiple Growth Opportunities – Large Deferred Revenue Balance Another Perfect Fit for Roper 12