Capital Markets Day

Andrew Williams – Chief ExecutiveKevin Thompson – Finance DirectorAdam Meyers – Director

14 February, 2013

Strategic model

Halma Capital Markets Day – February 2013

Active portfolio management Long-term market drivers

Organisational agility Niche products & strong market positions

Financial model

0

20

40

60

80

100

120

140

72/3

75/6

78/9

81/2

84/5

87/8

90/1

93/4

96/7

99/0

02/3

05/0

6

08/0

9

11/1

2

Sustained growth

0

100

200

300

400

500

600

72/7

3

75/7

6

78/7

9

81/8

2

84/8

5

87/8

8

90/9

1

93/4

96/7

99/0

02/3

05/6

08/9

11/1

2

Revenue Profit*£m £m

Halma Capital Markets Day – February 2013

* Before tax, amortisation of intangibles, acquisition costs, movement on contingent consideration and profit on disposal of operations

0

5

10

15

20

25

72/3

75/6

78/9

81/2

84/5

87/8

90/1

93/4

96/7

99/0

02/3

05/6

08/9

11/2

High returns

%

0

2

4

6

8

10

72/3

75/6

78/9

81/2

84/5

87/8

90/1

93/4

96/7

99/0

02/3

05/6

08/9

11/2

Return on sales Dividend per share*pence

Halma Capital Markets Day – February 2013

* Adjusted for scrip issues

Halma Capital Markets Day – February 2013

10

16

14

20

18

12

24

22

0 100 300200 500400

RO

S %

Revenue £m

26

600

Growth 2005 - 2012area proportional to profit

Halma Capital Markets Day – February 2013

Industrial Safety Health & Analysis Infrastructure Sensors

10

16

14

20

18

12

24

22

0 50 150100 250200

RO

S %

Revenue £m

26

300

Sector growth 2005 - 2012area proportional to profit

Halma Capital Markets Day – February 2013

Reporting Sector changes

Industrial Safety

Infrastructure Sensors

Health & AnalysisEnvironmental & Analysis

Medical

Infrastructure Safety

Process Safety

Halma Capital Markets Day – February 2013

New sectors: primary growth drivers

Health & Safety

Healthcare Life-critical resources

Process Safety

Medical

Environmental & Analysis

Infrastructure Safety

Halma Capital Markets Day – February 2013

New sectors revenue and profitHY 2012/13

Revenue Profit*

* Adjusted profit before finance expense and central costs

£298m £65m

Process Safety Infrastructure Safety Medical Environmental & Analysis

Halma Capital Markets Day – February 2013

0

50

100

150

200

Mar2009

Mar2010

Mar2011

Mar2012

Revenue trendsFull year revenue

£m

Process Safety Infrastructure Safety

0

50

100

150

200

Mar2009

Mar2010

Mar2011

Mar2012

Safety Health & Environmental

Medical Environmental & Analysis

£m

Halma Capital Markets Day – February 2013

New sectors: revenue by end-marketHY 2012/13 gross revenue

EnvironmentalMedical

Process Infrastructure

Buildings - new

Scientific/Environmental

Utilities

Healthcare/Medical

Process Industries

Energy & Resources

Buildings - existing

Others

£62m £102m

£60m £79m

SA

FETY

HE

ALT

H &

E

NV

IRO

NM

EN

T

Halma Capital Markets Day – February 2013

New sectors: revenue by regionHY 2012/13 external revenue

EnvironmentalMedical

Process Infrastructure

SA

FETY

HE

ALT

H &

E

NV

IRO

NM

EN

T

£62m £101m

£60m £75m

UK

RoW

USA

EUR

Halma Capital Markets Day – February 2013

Acquisition pipeline: sectors

Process

Environmental

Medical

Infrastructure

~500

Halma Capital Markets Day – February 2013

Acquisition pipeline: sectors and regionsProcess

EnvironmentalMedical

Infrastructure

~500

RoW

US

EUR

UK

RoW

US

EUR

UK

RoW

US EUR

UK RoW

US EUR

UK

Halma Capital Markets Day – February 2013

Summary

Proven strategy and financial model

New sectorsReflects sector growth trends

Aligned with growth drivers

Aligned with end-markets

Simplifies reporting

Simplifies investor proposition

Halma Capital Markets Day – February 2013

Active portfolio management ‘deep dive’

M&A model

M&A track record & sustainability

Case study: Health Optics division

Q&A

Halma Capital Markets Day – February 2013

M&A model: disciplined decision-making

• Halma growth drivers

• Strong financial performance

• Technology we understand

• Markets we know

• Ambitious local management

MERGE

SELL[5 year view]

BUY[15-20 year view]

Halma Capital Markets Day – February 2013

M&A model: primary focus is growth

Investment for growthinnovation, collaboration & market intelligencemanagement developmentinternational expansionmitigate risk

Operational improvementfinancial control and intelligencelean operations

Halma Capital Markets Day – February 2013

M&A model: DCEs drive the process

Resources

Process

HALMA EXTERNAL

DCE* GAE** MDs Finance Broker Advisors

Accountability

Search

Agreement

Due diligence

Completion

Integration

Cultivate

6 mths – 3 yrs

2 - 3 mths

TypicalTimeline

3 - 6 mths

Future

* Divisional Chief Executive ** Group Acquisition Executive

Halma Capital Markets Day – February 2013

Summary of M&A activity since 2002/03

2 - 2 3 4 1 2 1 7 2 5No.Acq’ns

- - 8 - 1 - - - 1 1No.Disp’ls 3

180

160

140

120

100

80

60

40

20

(40)

(20)

0

50

41440

21

105

141

243135

(5) (2) (5)

(pro

ceed

s) /

Spe

nd£m

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013To date

(15)(22)

Year end

Halma Capital Markets Day – February 2013

Revenue and profit* 2003 – 2012Subsidiaries in Group at March 2012 before finance expense and central costs

0

20

40

60

80

100

120

140

0

100

200

300

400

500

600

700 Revenue Profit*

Core Companies Acquired Companies

£m £m

* Excludes operations disposed of between 2003 and 2012

Halma Capital Markets Day – February 2013

Revenue progression* 2003 – 2012Subsidiaries in Group at March 2012

600

500

400

300

200

100

0

50

193 3135

2003 CORE

COREOrganic Growth

AcquiredCompanies

AcquiredCompanies

Growth

2012TOTAL

133

162

88 576

£m Total CAGR 11%

Core Organic CAGR 6%

* Excludes operations disposed of between 2003 and 2012

Halma Capital Markets Day – February 2013

Profit progression* 2003 – 2012Subsidiaries in Group at March 2012 before finance expense and central costs

150

100

50

0

50

37

33

36

20 126

£m

2003 CORE

COREOrganicGrowth

AcquiredCompanies

AcquiredCompanies

Growth

2012TOTAL

Total CAGR 13%

Core Organic CAGR 7%

* Excludes operations disposed of between 2003 and 2012

Halma Capital Markets Day – February 2013

Optimal rate of growth has 3 key factors

SHAREHOLDER RETURN

Organic growth

Dividend growth

M&A multiples

Halma Capital Markets Day – February 2013

Acquisition spend for 15% pa total growth*

*assumes average multiple 8xEBIT; 7.5% organic growth; Net Debt <1.25xEBITDA

£m

0

20

40

60

80

100

120

140

160

180

200

2013 2014 2015 2016 2017

Annu

al s

pend

Year

Halma Capital Markets Day – February 2013

Span of control is a critical factor to manage

0

20

40

60

80

100

120

140

0

20

40

60

80

100

120

140

Profit No Halma Companies

£m

2003 ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 2012

Year

Halma Capital Markets Day – February 2013

Case Study: Health Optics division

Adam Meyers – Director

Halma Capital Markets Day – February 2013

Health Optics division: ophthalmic market

Cataract surgery

Lenses & eye care

Diagnostic Instruments

Refractive surgery

Pharmaceutical£12Bn

Halma Capital Markets Day – February 2013

Excellent long term drivers – Healthcare demand

Aging global demographics

Improving worldwide access

Increasingly difficult global regulations

Well-established competitors

Physician choice devices

Health Optics division: market characteristics

Halma Capital Markets Day – February 2013

Health Optics Health Optics division: what we make

Ophthalmologysurgical

Primary care diagnostics

Ophthalmologydiagnostics

Halma Capital Markets Day – February 2013

Health Optics division: evolution

MICROSURGICALTECHNOLOGY™

Rev

enue

£150m

2013201120092007Pre-2005

Halma Capital Markets Day – February 2013

$57M at closing with up to $43M contingent consideration

“Typical” M&A process

MicroSurgical Technology Inc.

Ophthalmic surgical products, focusing on single-use devices in cataract surgery

Halma Capital Markets Day – February 2013

MicroSurgical Technology Inc.: next steps

Execute Integration Plan

RoW coverage

Collaborate with Medicel

Explore Divisional synergies

Regulatory

US surgical sales

Capital investment

Halma Capital Markets Day – February 2013

Health Optics division – strong global presence

Principal operations Sales & support offices

Halma Capital Markets Day – February 2013

MICROSURGICALTECHNOLOGY™

Ophthalmology Primary Care

Diagnostic Surgical OEM Physician OEM

Health Optics division: expanding opportunities

Core market Secondary market

Halma Capital Markets Day – February 2013

Summary M&A

Clear strategy, sustainable success

Disciplined M&A approach

Buy good businesses we understand

Primary focus is growth

DCEs drive the process

Organic growth/cash generation crucial

Growth opportunities always increasing

Halma Capital Markets Day – February 2013

Location: Orlando, Florida Date: 29th/30th April, 2013

Investor Event 2013

Halma Capital Markets Day – February 2013

Disclaimer

This document contains statements about Halma plc that are or may be forward-looking statements. Forward-looking statements include statements relating to (i) future capital expenditures, expenses, revenues, earnings, synergies, economic performance, indebtedness, financial condition, dividend policy, losses and future prospects; (ii) business and management strategies and theexpansion and growth of Halma plc’s operations and potential synergies; and (iii) the effects of government regulation on business.

These forward-looking statements are not guarantees of future performance. They have not been reviewed by the auditors of Halma plc. They involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of any such person to be materially different from any results, performance or achievements expressed or implied by such statements. They are based on numerous assumptions regarding the present and future business strategies of such persons and the environment in which each will operate in the future. All subsequent oral or written forward-looking statements attributable to Halma plc or any of its shareholders or any persons acting on its behalf are expressly qualified in their entirety by the cautionary statement above. All forward-looking statements included in this document speak only as of thedate they were made and are based on information then available to Halma plc. Investors should not place undue reliance on such forward-looking statements, and Halma plc does not undertake any obligation to update publicly or revise any forward-looking statements.

No representation or warranty, express or implied, is given regarding the accuracy of the information or opinions contained in this document and no liability is accepted by Halma plc or any of its directors, members, officers, employees, agents or advisers for any such information or opinions.

This information is being supplied to you for information purposes only and not for any other purpose. This document and theinformation contained in it does not constitute or form any part of an offer of, or invitation or inducement to apply for, securities.

The distribution of this document in jurisdictions other than the United Kingdom may be restricted by law and persons into whose possession this document comes should inform themselves about, and observe any such restrictions. Any failure to comply with these restrictions may constitute a violation of laws of any such other jurisdiction.