Spirax-Sarco Engineering plcCapital Markets DayFriday 11th September

Nick AndersonGroup Chief Executive

Spirax-Sarco Engineering plc

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Agenda

“Doing better what we already do well.”

- Welcome from Nick Anderson (Group Chief Executive)

- Presentation by Jay Whalen (President of WMFTG)

- Presentation by Simon Nicholson (Managing Director, Watson-Marlow Ltd)

- Site tour

Lunch

- Presentation by Richard Green (Group Product Manager, WMFTG)

- Presentation by Rachel Pallett (Sales and Marketing Director, EME, WMFTG)

- Presentation by Ian Farnworth (Group Supply Chain Director, SxS)

- Presentation by Sheldon Banks (Divisional Director for the Americas, SxS)

- Round up and Q&A, Nick Anderson

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1) Increase direct sales effectiveness through sector focus

2) Develop the knowledge and skills of our expert sales and service teams

3) Broaden our global presence

4) Leverage R&D investments

5) Optimise supply chain effectiveness

6) Operate sustainably and help improve our customers’ sustainability

To deliver self-generated growth outperforming our markets

Doing better what we already do well

Our strategy

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Our strategyObjective: self-generated growth that outperforms our markets

Focus: doing better what we already do well

Our six-part Group strategy reflects the key elements of the Spirax Sarco steam business strategy, the Watson-Marlow Fluid Technology Group strategy and the Group acquisitions strategy:

• To be the world leader in steam and thermal energy solutions

• Intensify customer focus through enhanced customer value propositions

• Focus on priority industries

• Increased R&D effectiveness

• Global excellence in supply chain

• Competitive advantage through enhanced knowledge and skills

Spirax Sarco Eight strategic thrusts

1. Grow end user sales in Food & Beverage and Healthcare

2. Grow sales in OPC and Chemicals

3. Grow sales in OEM’s

4. Early entry to attractive geographic markets

5. Grow sales of Thermal Energy Management and Controls products

6. Global excellence in Supply Chain

7. Launch the right products to market faster

8. Develop knowledge and skills

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Our strategyObjective: self-generated growth that outperforms our markets

Focus: doing better what we already do well

Our six-part Group strategy reflects the key elements of the Spirax Sarco steam business strategy, the Watson-Marlow Fluid Technology Group strategy and the Group acquisitions strategy:

• To be the world leader in steam and thermal energy solutions

• Intensify customer focus through enhanced customer value propositions

• Focus on priority industries

• Increased R&D effectiveness

• Global excellence in supply chain

• Competitive advantage through enhanced knowledge and skills

• Enhance market sector sales focus

• Achieve rapid geographical expansion

• Accelerate development of breakthrough products

• Attain excellence in manufacturing

• Selective product and market sector diversification

Watson-MarlowSpirax Sarco

• To create significant shareholder value through supplementing organic growth

• Expand the capabilities of our niche businesses through new technologies, skills or geographic coverage

• Increase our addressable market into adjacent related sectors

Acquisitions

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Summary: strategy implementation“Doing better what we already do well”

• Strategy implementation is delivered through the execution of selected projects across whole organisation

• Governed by a Strategy Steering team focused on driving transformational projects

• Supported by dedicated Strategy Implementation team including regional programme managers

• Strategy deployment tool (Hoshin Kanri) used to cascade the strategy across the Group and align all business units

• Engaging multiple levels across the global organisation

Accelerating growth and adding value for the long term

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Watson-Marlow Fluid Technology GroupJay WhalenExecutive DirectorPresident, Watson-Marlow Fluid Technology Group

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Watson-Marlow Fluid Technology GroupEight brands

Low-flow peristaltic metering pumps

(joined SSE plc in 1990)

Precision pump and transfer tubing

High-flow industrial hose pumps (acquired

1996)

Low-flow, high precision OEM

pumps (acquired 2000)

Aseptic filling (acquired 2008)

Sinusoidal pumps (acquired 2009)

Biopharm tubing connection systems

(acquired 2014)

Stainless steel tank bottom and in-line

valves for biopharm(acquired 2015)

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In a peristaltic pump, a flexible tube is occluded and fluid is driven through the pump by rollers or shoes. Restitution of the tubing draws in fresh fluid.

Peristaltic pumpHow it works

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Peristaltic pumpValue proposition

The pump does not touch the fluid

Making peristaltic pumps perfect for clean fluids which must not be contaminated – biopharm & pharmaceuticals, and food & beverage applications.

A sterile tube makes a sterile pump.

The fluid does not touch the pump

Making peristaltic pumps equally suitable for dirty fluids which contaminate other pumps – slurries, pigments, effluent applications.

No need to strip or clean the pump; a new tube makes a new pump.

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• Simple single shaft and single rotor design

• Symmetrical sinusoidal pumping chambers provide positive displacement of product. As one chamber discharges the other fills

• A gate shuttles back and forth along the rotor separating the suction chamber from the discharge, preventing fluid slip

• Large pumping chambers eliminate product compression and damage to large solids

MasoSine pumpHow it works

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Fits perfectly in gap between hygienic Watson-Marlow pumps and higher pressure Bredel pumps

• Higher flow rates

• Higher viscosities

• Higher pressures

• Non-lubricated

• Gentle pumping

• Simple maintenance

• Targets rotary lobe pumps

• Strengthens product portfolio

• Doubled share of food & beverage market

MasoSine pumpValue proposition

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The connection between Watson-Marlow pumps and Watson-Marlow tubing in biopharm single use aseptic process

• “Single-use” is a growing trend within the growing biotechnology sector

• Peristaltic pumps and tubing are perfect for single-use

• BioPure add the aseptic connection systems and enable the manufacture of single use assemblies

BioPure connection systemsValue proposition

BioClamp BioBarb BioValve

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Asepco stainless steel valvesValue proposition

Asepco radial valves deliver purity and reliability

• Radial valves’ ability to drain and clean simplifies batch to batch changeovers

• Less risk of contamination of the customer’s high value product

• Validation of the cleaning routine is paramount, and the simpler Asepco design fits to that well

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Five core strategies

• Market sector sales focus

• Rapid geographical expansion

• Accelerate development of breakthrough products

• Excellence in manufacturing

• Selective product and market sector diversification

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Water and wastewater

Abrasion-resistant pumping of solids-laden fluids. Accurate and controllable chemical metering.

Food and beverage

Accurate, repeatable dosing with low-shear pumping action. No damage to solids and soft fruit. Clean in place and steam in place.

MasoSine: gentle, low shear, viscous.

Biotech and pharmaceuticals Sterile pumping, filling, transfer tubing and connections. Applications include fermentation, filtration, aseptic filling and tablet coating.

Industrial and chemicalsWide chemical compatibility, flow rate ranges and control options. Ease of use ensures rapid acceptance by operators.

Mining

Rugged pumps required to reliably handle aggressive flocculent chemicals and abrasive slurries 24/7.

Fluid path technology for process industriesStrategy: market sector sales focus

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Biopharmaceutical

Industrial

Environmental

Food & Beverage

Medical

Mining

Other

Sales by market sectorStrategy: market sector sales focus

35% BioPharm/Pharmaceutical

Mainly Watson-Marlow pumps and tubing, and Flexicon filling. Boost from Biopure

20% Industrial

General industrial markets slow

12% Water & Wastewater

Environmental recovering in 2014

11% Food & Beverage

MasoSine and Watson-Marlow

8% Mining

All Watson-Marlow and Bredel. Stabilized in 2014

6% Medical & Clinical Diagnostic

Watson-Marlow and Alitea OEM route to market accounts for 21% of sales

2014 Sales

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Direct sales operation > 3yrs

Direct sales operations < 3yrs

Direct operations planned 2015/16

• Greater understanding of customers’ processes

• Greater support to end customers

• Knowledge-based, close relationship with customers

• Watson-Marlow actively converting 3rd party distribution to direct sales

Rapid geographical expansionStrategy: rapid geographical expansion

Direct sales operations driven by market sector focus:

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2014 new and emerging marketsStrategy: rapid geographical expansion

In 2014 18% of sales from emerging markets (2013: 19%)

Americas 44% (2013: 44%)

Emerging markets 8% (2013: 9%)

EMEA 44% (2013: 44%)

Emerging markets 2% (2013: 3%)

Asia Pacific 12% (2013: 12%)

Emerging markets 8% (2013: 7%)

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AOD (air-operated diaphragm) pumps Wilden and Warren Rupp – mainly industrial and printing

Peristaltic hose pumps Verder, Abaque, Boyser and PCM Delasco – mainly water treatment and

mining

Progressive Cavity pumps Moyno, Mono and Allweiler – mainly food & beverage, water

treatment, mining

Industrial lobe pumps and circumferential piston pumps Johnson, Waukesha and Alfa-Laval

Competition

Sanitary lobe pumps Waukesha, ITT Jabsco and Fristam – mainly food and beverage,

pharmaceutical and cosmetics

Peristaltic metering and OEM pumps Masterflex and Verder – laboratory and industrial. Chinese

knockoffs

Solenoid diaphragm pumps Prominent, Alldos, Grundfos and LMI – mainly water treatment

Mechanical diaphragm pumps Pulsafeeder and Bran+Luebbe – mainly chemical dosing

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Breakthrough productsStrategy: accelerate development of breakthrough products

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• Watson-Marlow Qdos – totally new peristaltic metering pump to directly

target solenoid diaphragm pumps in water & wastewater, mining and

general chemical/industrial sectors. Qdos30 now joined by Qdos60

• Bredel Apex – mid range hose pump capable of 7 bar. Ideal for general

industrial areas. In five sizes from 275 litres per hour to 6,200 litres per

hour

• Single Use Assemblies – Single-use tubing assemblies for the growing

biopharmaceutical market

• AMP Pump – Chinese manufactured entry level peristaltic pump for the

Asian market

Innovative product developmentStrategy: accelerate development of breakthrough products

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Our smallest pump, at its lowest

speed, would take nearly 13,000

years to pump what the largest

pump can pump in one minute

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Addressable market size 2014

£138m

£622m

WMFTG 18%

Other 82%

Total addressable market, 2014 - £760m

• Acquisitions• Product development

Market size

£760m

Asepco adds £11m addressable market in 2015

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Our factories – centre of excellenceStrategy: excellence in manufacturing

• Each factory is a centre of excellence for its own particular part of the product range

• Improvement driven by the Global Excellence in Manufacturing program (GEM)

• All factories accredited to ISO 9001 and seven of eight to ISO 14001

AsepcoMountain View, USA

BioPurePortsmouth, UK

Watson-Marlow TubingFalmouth, UK

Watson-Marlow PumpsFalmouth, UK

Bredel Hose PumpsDelden, Netherlands

MasoSine PumpsIlsfeld, Germany

Flexicon Filling SystemsRingsted, Denmark

Alitea OEM PumpsStockholm, Sweden

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Leveraging growthStrategy: selective product and market sector diversification

• Expanding our product portfolio and addressable market, to leverage growth

Acquisitions:

Flexicon – aseptic filling (2008)

MasoSine – sinusoidal pumps for food and beverage (2009)

BioPure – aseptic tubing connection systems and assemblies (2014)

Asepco – stainless steel aseptic valves for biopharm (2015)

Product:

Qdos – peristaltic metering pump range targeting industrial process

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• Consistent revenue growth

• Consistent profit growth

• Expanding market share

• Expanding sales footprint

• Excellence in manufacture

• Breakthrough product development

• Expanding addressable market

• Niche related fluid path acquisitions

A market leader in positive displacement

pumps and related fluid path equipment

Watson-Marlow Fluid Technology Group

Watson-Marlow Fluid Technology GroupSimon NicholsonManaging Director

Watson-Marlow Pumps & Tubing

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Falmouth facilityHeritage and scale

• Watson-Marlow started in Marlow, Bucks in 1956

• Relocated to Falmouth in 1969 with 12 people

• Now on 3 sites employing over 280 people

• Manufacture annually 125,000 pump heads, 15,000 pump drives, 140,000 elements and 12,000 km of tubing

• Process 35,000 Sales Orders lines, despatched to 70 destinations globally

• ISO 9001, ISO 14001, OHSAS 18001 accredited

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Watson-Marlow Pumps and TubingProducts / core competences

Design and manufacture

• Peristaltic pumps with flow rates 0.6ml/min to 8,000 litres/hour

• Tubing and elements in bore sizes 0.13mm to 25.4mm

Providing WMFTG with core competences

• Make-To-Order assembly capability

• Precision machining of critical pump / element components

• Tubing extrusion within “Good Manufacturing Practice” compliant cleanrooms

• New Product Development of mechanical/electronic technology platforms

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Supply strategyExcellence in manufacturing and global process

1. Utilise - Global Excellence in Manufacturing (GEM)

2. Strengthen - Make-to-Order (MTO)

3. Invest in - Global IT solutions (ERP)

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Global Excellence in ManufacturingGEM core principles

• Our way of working

• Our operating system

• A philosophy we believe in

• The right way to manage our operations and daily work

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Global Excellence in ManufacturingHow GEM delivers

Since GEM introduced in 2012• £1m savings to P&L• 7,500 hours savings added to capacity

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Global Excellence in Manufacturing

313/314 Pumpsroller press automation • 500 hours labour saving in 2015 provides

extra capacity• From 3 hours to 20 mins to assemble

1,000 rollers, with added mistake proofing

Tubing tooling set-up reduction • £6k benefit to P&L in 2015

through material saving• Reduced setup 25% downtime

provides extra capacity and changeover flexibility

How GEM works

Bright Idea

Management Review

GEM project

Labour/cost savings

P&L benefit

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Excellence in global processMake-to-Order (MTO)

• Modular design allows late configuration/flexibility

• Assembly cells build customer specific product

• Daily shipments to the sales companies

• No finished stock of pumps or drives at Falmouth

• Minimal stock held at sales companies

• MTO reduced Order to Despatch process from 20 days to 2 days

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Excellence in global processGlobal IT solutions (ERP)

• WMFTG is deploying a global ERP solution

• Sales companies enter customer orders directly

• Inter-company orders sent automatically

• Manufacturing requirement appears in real time

• Interfaces with global freight suppliers to allow automatic despatch data/tracking

• Global ERP solution to reduce Order to Despatch process from 2 days to 1 day

Watson-Marlow Fluid Technology GroupRichard GreenGroup Product Manager

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New Product DevelopmentAgenda

New Product Development strategy

What we have achieved so far

Key breakthrough products in the pipeline

Continuous improvement in process

Closing comments

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New Product DevelopmentOur strategy

Accelerate the development of breakthrough products

We will invest in new product development to grow the performance envelope of our niche peristaltic and sinusoidal pumps, and associated fluid path technologies to gain market share against our competitors, whilst expanding our addressable market and market sector penetration. Continual development of our product range will also focus on value engineering and cost reduction.

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New Product DevelopmentAlready achieved

• Two central themes:

Growth into key market sectors by increasing addressable market

Improving competitiveness and efficiency through value engineering and cost reduction

• Group Product Management carry out portfolio planning: selecting the right projects to align with strategy

• Individual projects commissioned through factory based NPD teams

• Several successful breakthrough products already in the market

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New Product DevelopmentRecent breakthrough products in the market

120 cased pumpsSector based developmentUpdated product platformMarket share increase

IN pumpsImproving competitivenessDesigned for Chinese manufactureJust launched

Qdos metering pumpsSector based developmentExpanding addressable market by opening up the performance envelope

APEX hose pumpsImproving competitivenessProduct positioning exercise, increasing market share

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New Product DevelopmentBreakthrough product development in progress

Objectives• Continue growth into chemical metering• Own the fluid path in biopharm, capitalise on growth of

single-use systems• Be the pump of choice in food and beverage process

• How we are achieving objectives: Increasing performance Expanding addressable market Sector based sales teams with value propositions specific

to their market

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New Product DevelopmentNPD excellence – continuous improvement programme

Improving NPD efficiency

• New group-wide NPD-specific project management process

• Honing group-wide project governance

• Reducing time-to-market: retaining core IP expertise at the factories, but investing in targeted bandwidth

• Clarifying development direction and visibility

• Roadmapping: viewing planning over a longer horizon

• Rapid assimilation of acquisitions into the Group NPD process – e.g. Asepco

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New Product DevelopmentAccelerating the development of breakthrough products

Conclusions

• A clear strategy

• Focused on increasing market share and addressable market

• Focused on improving competitiveness

• Several breakthrough products launched in the past few years

• Exciting breakthrough products in development for 2016

• Continuous focus on improving process, efficiency and time-to-market within the New Product Development process

…to accelerate the product development of breakthrough products

Watson-Marlow Fluid Technology GroupRachel PallettSales and Marketing Director, EME

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• B Eng Electronic Engineering, Imperial College London

• 1991 Renishaw plc (held engineering, sales, business

development and general management roles)

• 2008 Independent consultancy (learning, leadership)

• 2010 Joined WM Ltd as UK Sales Manager

• 2011 Appointed European Sales Manager

• 2013 Appointed Sales & Marketing Director - EME

Rachel Pallett - background

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WMFTG regional sales structure

Americas

Asia-Pacific and sub-Saharan Africa

Europe, Russia, Middle East + North Africa

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3 new direct sales companies

Moscow, Russia

Warsaw, Poland

Vienna, Austria

Rapid geographical expansion of direct sales presenceEME regional activity over the past 5 years

23 distributor conversions

Watson-Marlow x 3

Bredel x 7

Flexicon x 4

MasoSine x 5

BioPure x 3

Asepco x 1

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• Roll-out of new AX ERP & CRM system

• 9 out of 12 EME sales companies now ‘live’

– Inter-company sales process with AX factories

– Unified customer database, opportunity pipeline

– Improved scope for future efficiency savings

Process development in sales operations

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• Sales team structure

• Product and application training

• Sales conferences

• Exhibitions, advertising, digital marketing

• Business development

Sector focus in sales and marketing

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Sector focus examples

Customer site ‘lunch and learn’ event BioProducts Laboratory Ltd, UK

OEM e-book digital marketing campaign

Achema 2015, Frankfurt

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Cost savings calculator e-campaign industrial wastewater sector

Sector focus examplesProduct brochures include testimonials

to illustrate Customer Value Propositions

Sales engineers trained to demonstrate value in sector

specific applications

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• Facilitate capturing ‘Voice of the Customer’

• Participate in NPD stakeholder reviews

• Identify trial sites and early adopters

• ‘Product champions’ accelerate sales growth

Sales involvement with NPD

Group Supply Chain, Spirax Sarco Steam SpecialtiesIan FarnworthGroup Supply Chain Director, Spirax Sarco

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Purpose

1. Introduce you to our Supply Chain

2. Current status and opportunity for improvement in our Supply Chain

3. Key Supply Chain developments

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Our Supply Chain encompasses all of the activities that transport and transform raw materials and components into a finished product that is

delivered to the end customer.

1. Introduction to our Supply Chain

Supplier

TransportManufacturing

Transport

Operating Company

Transport Customer

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• 46 operating units in 41 countries

• Direct sales presence in 56 countries

• 8 (+1 in 2016) regional manufacturing units

• Excluding UK & France: 80% + supplied within region

• Direct sales model = distributor

• Short order book, 5-6 weeks

• Very wide product range

• Highly variable demand with low visibility

• High availability requirement, same/next day

1. Our Supply Chain

Requires a highly “agile” Supply Chain

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Good performance but further opportunity in the Supply Chain:

• Delivery performance• Inventory optimisation• Planning operations• Lead time & agility• Purchasing co-ordination• Operational efficiencies• Manufacturing to Supply Chain

thinking• Group synergy and leverage• Knowledge sharing within the

Group

2. Current status & opportunity for improvement

Our metrics

VOC:

Our knowledge

Progress in these areas will support growth

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3. Key Supply Chain developments

Customer First Thrust 6 objectives

Spirax is recognised as having an excellent product availability service throughout the world, as viewed by the customerSpirax Supply Chain achieves continuous improvement in efficiency

1. Planning

2. Agility

3. Efficiency

TimeNow

OTTC deployment

IQM deployment

OTTR deployment

Manufacturing planning : system development

Manufacturing planning : talent development

S&OP deployment

Activity aligned with growth requirement

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Customer First Thrust 6 objectives

Spirax is recognised as having an excellent product availability service throughout the world, as viewed by the customer.Spirax Supply Chain achieves continuous improvement in efficiency

3. Key Supply Chain developments

TimeNow

Activity aligned with growth requirement

1. Planning

2. Agility Lead time programme: Kaizen events/projects within all manufacturing locations

3. Efficiency

Sectorisation in Supply

Capex programme within manufacturing

Lead time programme within manufacturing

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Customer First Thrust 6 objectives

Spirax is recognised as having an excellent product availability service throughout the world, as viewed by the customer.Spirax Supply Chain achieves continuous improvement in efficiency

3. Key Supply Chain developments

TimeNow

Activity aligned with growth requirement

1. Planning

2. Agility

3. Efficiency Efficiency programme: Kaizen events/projects within all manufacturing locations

Sourcing synergies

Capex programme within manufacturing

Efficiency programme within manufacturing

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3. Other Group Supply Chain developments to support

Direct Sales Model, Spirax Sarco Steam SpecialtiesSheldon BanksDivisional Director for the Americas, Spirax Sarco

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Our operating company offeringMarket leading products plus more …

Health & Safety Compliance

Project Management

Installation & Commissioning

Service & Maintenance

Training

24-Hour Priority Response

Steam Trap Surveys & Management

Steam System Audits

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Direct sales model with a variety of supply options

Contractors

End user

DistributorsTypical sales

operating company

Selling takes place here

OEMs

Direct

Ho

w w

e su

pp

ly

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End customer relationship strength

Account Manager

End Customer

Buyer

End Customer

Buyer

Account Manager

Supply Chain Supply ChainEngineering EngineeringProjects ProjectsProduct Experts ProductionSolutions Sustainability

Supply ChainEngineeringProjectsProductionSustainability

Supply Chain EngineeringProjectsProduct ExpertsSolutions Weak Connection

Strong Connection

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Our

SALESFORCEis unique and a major investment

The Spirax Sarco brand is not just the products but also the people. The products and people together create brand loyalty.

Vs.

Competitor Field Sales

Competitor #1

Competitor #2

Competitor #3

Competitor #4

Competitor #5

Competitor #6

Developing knowledge and skills

UK and ROI example

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Loss of

STEAMknowledge in the user base, direct contact essential

Customers no longer have the steam knowledge they once had nor the resources for engineering.

Many customers do not understand what problems they have, let alone how to fix them.

Developing knowledge and skills

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Solution

SELLINGfocussed on VALUE for our Customers

Taking sales from a vendor to trusted advisor is well on the way as we become their steam engineers.

How to Win Customer Value Proposition (CVP)

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Challenges of

SUSTAINABLEprocesses are a minefieldfor the customer, we help

Encircling the customer are a myriad of opportunities to develop a sustainable business.

Spirax Sarco guides clients to successful funding and technology as the industry steam leader.

Customer

CRCROCs

DEC

RHI

ESOSClean Steam

HTM 203

ECA

L8 Legionella

Climate Change Levy

EU ETS

Developing knowledge and skills

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Encourage

INNOVATIONthat is driven from customerengagement and unmet needs

As a pioneer in the packaged system, Spirax Sarco sales lead the way on many fronts.

Systems represent a growing share of the Company’s sales.

Launch the right products to market faster

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Leverage

IPin our databasesas a means to win

A unique database of the installed steam plant and customer base.

Unprecedented contact information with most of the key customers.

Leveraging this information for salesgrowth is a formidable advantage.

>400,000 contacts>80,000 active customers

We know the steam boiler population

Direct Sales Model

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Customer

TRAININGin Spirax Sarco is recognised as the industry standard

Direct contact with the customer has created long term, high value training support to our users for the lifetime of their systems.

Training centres are seen as centres of excellence in a world where customer steam knowledge is diminishing.

From SME’s to Blue Chips

Direct Sales Model

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Case Study

Spirax Sarco helps Kettering General Hospital secure funding for £250k energy saving project

Sectorisation

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Case Study

Trap survey and replacement programme helpsTexas refinery save $245,000 per annum

Sectorisation

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Case Study

Spirax Sarco provides turnkey steam system for Europe’s largest printworks

Direct Sales Model

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Case Study

Spirax Sarco helps cheese producer to upgrade plant with Clean Steam Generators

Sectorisation

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energy savings,

CO₂ savings,

water savings,

productivity improvements,

quality improvements,

cost reductions,

regulatory compliance,

effluent reduction,

recovered product,

safer working environment

Value created in many forms …

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Summary

Reseller

Contractor

OEM

End user

Spirax Sarcovalue

Direct Sales Model

Nick AndersonGroup Chief Executive

Spirax-Sarco Engineering plc

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Our strategyObjective: self-generated growth that outperforms our markets

Focus: doing better what we already do well

Our six-part Group strategy reflects the key elements of the Spirax Sarco steam business strategy, the Watson-Marlow Fluid Technology Group strategy and the Group acquisitions strategy:

• To be the world leader in steam and thermal energy solutions

• Intensify customer focus through enhanced customer value propositions

• Focus on priority industries

• Increased R&D effectiveness

• Global excellence in supply chain

• Competitive advantage through enhanced knowledge and skills

• Enhance market sector sales focus

• Achieve rapid geographical expansion

• Accelerate development of breakthrough products

• Attain excellence in manufacturing

• Selective product and market sector diversification

• To create significant shareholder value through supplementing organic growth

• Expand the capabilities of our niche businesses through new technologies, skills or geographic coverage

• Increase our addressable market into adjacent related sectors

Watson-Marlow AcquisitionsSpirax Sarco

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Summary: benefits“Doing better what we already do well”

The Group strategy will:

• increase the effectiveness of our direct sales organisation

• leverage our strengths in key sectors

• capitalise on the most attractive opportunities

• expand our addressable markets

• align and direct resources more effectively

• improve business performance

Accelerating growth and adding value for the long term

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Questions?