EPG Annual Spring Conference - Roper Technologies

Roper Technologies, Inc.

May 18, 2015

EPG Annual Spring Conference

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A Diversified Growth Company

2

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 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 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.

Engineered Content for Diverse Niche Markets

Creating Shareholder Value

Strategy Results Significant Growth Platforms • Leadership in Favorable Markets

• Diverse End Markets, Broad Customer Base

Significant Growth; Compelling Cash Flow

Outstanding Cash Flow/Conversion • Strong and Sustainable Margins

• High Incremental Operating Profit

Cash Deployment Creates Value • Internal Growth Initiatives

• Disciplined Acquisitions and Successful Integration

3

High Gross Margins Recurring Revenue

Strong Operations Management

Superior Operating Profits Excess Free Cash Flow

Strategic Reinvestment of Cash

R&D, Internal Growth, Acquisitions

Creating Shareholder Value

4

A Proven Growth Strategy

Comparison of Cumulative Total Shareholder Return

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

IPO 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Roper Technologies, Inc. S&P 500

Note: Chart depicts $100 invested in IPO vs. S&P 500

Name Changed to Roper Technologies

» Roper Technologies Better Describes Our Existing Family of High Performing Businesses; Points to Future of Great Opportunities

» Continued Focus on Niche, Asset-Light Businesses with Leading Technologies that Generate Significant Free Cash Flow for Investments in Sustainable Growth

» Since 2010, $4.2 Billion Deployed in Acquisitions Focused on Software, Information Networks and Medical Products

• ~$600M in Q1 2015 Healthcare IT Acquisitions

• Strong Pipeline of Future Opportunities Across Software, Information Networks and Medical

5

Consistent Strategy Drives Roper’s Evolution

The Roper Strategy

» Win in Niche Markets Through a Diverse Set of Businesses with Leading Market Positions

» Focus on Proprietary and Differentiated Customer Solutions to Generate High Gross Margin Recurring Revenue Streams

» Maintain an Asset-Light Business Model to Deliver Exceptional Cash Performance with Minimal Requirements for Working Capital and Capital Expenditures

» Ensure Business Leaders are Accountable for Results and Can Operate Within Our Nimble Governance System

» Appreciate and Preserve What Works While Stimulating Progress and Change that Can Accelerate Growth and Drive Cash Returns

» Effectively Deploy Excess Free Cash Flow in Acquisitions that Deliver Growth and High Cash Returns

6

A Culture of Localized Innovation and Nimble Decision Making



Roper’s Strategic Evolution

(1) – Fiscal Year 2002

» Roper IPO in February 1992:

• $70 Million Revenue, $14 Million EBITDA

» Decentralized Operating Model

• Diversified Company Focused on Niche Markets

• Business Level Management Teams with Direct P & L Responsibility; No Corporate Allocations

» From 1992 – 2002(1) (11 Years Cumulative):

• $535 Million in Operating Cash Flow Generated

• $718 Million in Acquisition Investment

1992 - 2002

IPO; Joined S&P Small Cap 600

7

3 Businesses at IPO

Traditional Multi Industry Focus

» Roper Governance Processes Enhance Organic Growth

• Focus on Free Cash Flow, Asset-light Models

• Cash Return Metrics Installed

• Incentives Tied to Operating Profit Growth

» From 2003 – 2009 (7 Years Cumulative):

• $1.9 Billion in Operating Cash Flow Generated

• $3.0 Billion in Acquisition Investment; Increased Focus on Technology

» Selected Key Strategic Platform Acquisitions: Neptune (water), Transcore (transportation / software), Verathon and CIVCO (medical), CBORD (education / software)

2003 - 2009

Joined S&P 500

Increased Focus on Technology



Roper’s Strategic Evolution

» From 2010 – 2014 (5 Years Cumulative):

• $3.4 Billion in Operating Cash Flow generated

• $4.2 Billion(1) in Acquisition Investment; Primary Focus on Software, SaaS and Medical

» Selected Key Strategic Platform Acquisitions: Sunquest (laboratory software), MHA (alternate site healthcare), NDI (medical), iTrade Network (food / SaaS)

• High Levels of Recurring Revenue

• Low to Negative Net Working Capital

• Network Effect

» Roper 2014: $3.6 Billion Revenue, $1.2 Billion EBITDA

2010 - 2014

» Diversified Technology Company

• ~40+ Separate Businesses with Leadership Positions in Niche Markets

• Enterprise-wide Governance Processes to Drive Growth and Cash Flow

• 59% Gross Margin; 34% EBITDA Margin

• ~2/3 of EBITDA from Medical and RF Segments

• 30%+ Software / SaaS

• ~50% Recurring Revenue

» Powerful Cash Flow Engine Drives Capital Deployment

• Expect $925M+ in 2015 Operating Cash Flow

• Acquire Great Companies that Generate Free Cash Flow for Future Capital Deployment

• Acquisition Investments Exceed Cash Flow

Roper Technologies Today

8 (1) – Includes $590M of Announced Q1 2015 Acquisitions

Transformed to Diversified Technology Company Compounding Cash Drives Shareholder Value

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 9



CRI Discipline Drives Cash Flow

Cash Earnings Net Income + D&A – Maintenance Cap-Ex

Gross Investment Net Working Capital* + Net PP&E +

Accumulated Depreciation

= ash eturn on nvestment

» Common Metric throughout Roper Businesses

» Focuses All Businesses and the Enterprise on Cash Flow Growth & Disciplined Asset Investment

» Encourages Internal Growth Using Current or Reduced Assets

» CRI is Highly Correlated to Market Valuation

C R I

10 *Net Working Capital Excludes Cash, Short Term Debt and Taxes

Executing Our High Performance Model

Compounding Cash Drives Shareholder Value 11 *Figures are Provided on an Adjusted Basis, See Appendix for Reconciliation from GAAP to Adjusted Results; 2003 Asset Intensity is Calculated Prior to the December 2003 Neptune Acquisition

In $ Millions

$71

$840

2003 2014

Operating Cash Flow EBITDA

22% CAGR 25%

CAGR

8%

19%

S&P 500 ROP

Compound Annual Shareholder Return

(2003 - 2014)

Asset Intensity* (NWC + Gross Fixed Assets) / Sales

Cash Return on Investment

~30%

~130%

2003 2014

4.3x

$130

$1,201

2003 2014

38%

18%

2003 2014

(2,000 Bps)

Asset-Light Business Model

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Roper Governance Process Drives Working Capital Focus

03/31/13 03/31/14 03/31/15

(I) Inventory 6.8% 6.3% 5.7%

(R) Receivables 19.3% 18.3% 17.3%

(P) Payables & Accruals

18.4% 18.2% 18.0%

Total (I+R-P) 7.7% 6.3% 5.0%

Working Capital* as % of Q1 Annualized Net Sales

* Defined as Inventory + A/R + Unbilled Receivables – A/P – Accrued Liabilities; Sales and Working Capital Related to Acquisitions Completed in Each Quarter Removed from Calculation

2013 2014 2015

7.7%

6.3% 5.0%

(270 Bps)

Note: Percentages may not sum correctly due to rounding

03/31/05

10.2%

18.4%

14.4%

14.2%

Compelling Cash Conversion

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Cash Flow Consistently Greater Than Net Income

» 17 Consecutive Years of Free Cash Flow > Net Income

» Free Cash Flow Conversion of 136% from 2004-2014

» Expect Over $885M of Free Cash Flow in 2015

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Net Income Free Cash Flow

In $ Millions

$2,386

$2,797

$3,003

$3,272

$3,552

2010 2011 2012 2013 2014

Sales Growth & Margin Expansion

Governance Processes Drive Nimble Execution

Revenue*

14

53.4% 54.2%

56.0%

58.6% 59.3%

26.7% 28.7%

30.8% 32.8% 33.8%

0.2

0.25

0.3

0.35

0.4

0.45

0.5

0.55

0.4

0.45

0.5

0.55

0.6

0.65

2010 2011 2012 2013 2014

Gross Margin*

EBITDA Margin*

*Figures are Provided on an Adjusted Basis, See Appendix for Reconciliation from GAAP to Adjusted Results

In $ Millions



15

2014 Segment Performance

Revenue

EBITDA*

Results are presented on an Adjusted (Non-GAAP) basis. See appendix of this presentation for reconciliations from GAAP to Adjusted results.

* Excludes Corporate Expenses

• Control Software • Sensors • Instrumentation

• Data Collection / Metering Technology

• Fluid Handling • Instrumentation

• Electronic Tolling • SaaS Solutions • Software Applications • RF Products

• Medical Software and Services

• Medical Products • Life Sciences

Energy Ind. Tech RF Tech Medical

In $ Millions

We Acquire Outstanding Companies

» Key Criteria • High CRI

• Gross Margin > 50%; Delivers Value for Customers

• Leader in a Niche Market; Competitive Advantages

• Management Teams Committed to Continued Growth

»Accelerate Growth • Incentives Linked to Commitments

• Preserve Core Values; Stimulate Progress

• Make Targeted Investments

• Roper Governance Processes

Proven Ability to Drive Higher Performance 16



• SaaS Financial Analytics and Performance Platform for Hospitals

• Enterprise-wide Solutions for Financial Planning, Decision Support and Continuous Cost Improvement

• 1 Out of Every 5 U.S. Hospitals Uses One or More of Strata’s SaaS Applications

• Long-term Care Pharmacy Enterprise Software

• On-premise Software Delivery Model Combined with Recurring Billing and E-prescription Processing Revenue Streams

• Closely Aligned with MHA; Same Customer Base

• Largest Clinical and Blood Laboratory Middleware Provider

• Library of ~1,000 Laboratory Connections Deployed Across 80+ Countries

• Adds to Existing Sunquest Capabilities in Hospital Laboratory Markets

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Healthcare IT – 1st Quarter Acquisitions

Roper Technologies

» Leadership Positions in Diverse Niche Markets

» Broad Customer Base

» Superior Profitability through Outstanding Execution

» Asset Light Businesses Allow Nimble Execution

» Strong Cash Conversion

» Capital Deployment Compounds Cash Flows and Drives Additional Shareholder Value

» Our Diverse Technology Businesses Provide Exceptional Investment Opportunities

18

Simple Ideas; Nimble Execution; Powerful Results

Appendix

19



20

Reconciliations I

(in Thousands) FY 2014

Margin Reconciliation Industrial Technology

Energy Systems & Controls

Medical & Scientific Imaging RF Technology

Revenue (A) $827,145 $691,813 $1,082,279 $950,587

Gross Profit (B) 417,568 403,287 782,226 501,997

Gross Margin (B) / (A) 50.5% 58.3% 72.3% 52.8%

Operating Profit 247,596 203,021 378,686 271,537

Add Amortization 9,085 17,614 81,841 47,854

EBITA (C) 256,681 220,635 460,527 319,391

EBITA Margin (C) / (A) 31.0% 31.9% 42.6% 33.6%

Add Depreciation 12,050 5,667 11,842 10,848

EBITDA (D) 268,731 226,302 472,369 330,239

EBITDA Margin (D) / (A) 32.5% 32.7% 43.6% 34.7%



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Reconciliations II

(All Numbers are In Thousands)

Adjustments

2014 GAAP

SHP Purchase Accounting

Adjustment to Acquired Deferred

Revenue

IPA Acquisition Related Inventory Step-up Charge

FoodLink Purchase Accounting

Adjustment to Acquired Deferred

Revenue

2014 Adjusted

Net Sales $3,549,494 $1,970 - $360 $3,551,824

Gross Profit $2,101,899 $1,970 $849 $360 $2,105,078

Net Earnings $646,033 $1,280 $552 $234 $648,099

Taxes 275,423 690 297 126 276,536

Interest 78,637 - - - 78,637

Depreciation 40,890 - - - 40,890

Amortization 156,394 - - - 156,394

EBITDA $1,197,377 $1,970 $849 $360 $1,200,556

2014 Reconciliation of GAAP to Adjusted; Revenue, Gross Profit, and EBITDA

(1) For the three adjustments, the company used a 35% tax rate as these adjustments are US-based items and 35% is the statutory tax rate in the United States.



22

Reconciliations III


Adjustments

2013 GAAP

Sunquest Fair Value Adjustment

to Acquired Deferred Revenue

MHA Purchase Accounting

Adjustment for Acquired Revenue

Vendor-Supplied Component Quality

Issue

2013 Adjusted

Net Sales $3,238,128 $6,980 $26,433 - $3,271,541

Gross Profit $1,882,928 $6,980 $26,433 - $1,916,341

Net Earnings $538,293 $4,537 $17,181 $5,915 $565,926

Taxes 215,837 2,443 9,252 3,185 230,717

Interest 88,039 - - - 88,039

Depreciation 37,756 - - - 37,756

Amortization 151,434 - - - 151,434

EBITDA $1,031,359 $6,980 $26,433 $9,100 $1,073,872


(1) For the three adjustments, the company used a 35% tax rate as these adjustments are all US-based items and 35% is the statutory tax rate in the United States.



23

Reconciliations IV


Adjustments

2012 GAAP Sunquest

Acquisition-Related Expenses

Sunquest Fair Value Adjustment

to Acquired Deferred Revenue

Debt Extinguishment

Charge

2012 Adjusted

Net Sales $2,993,489 - $9,082 - $3,002,571

Gross Profit $1,671,717 - $9,082 - $1,680,799

Net Earnings $483,360 $4,100 $5,903 $678 $494,041

Taxes 203,321 2,208 3,179 365 209,073

Interest 67,525 - - - 67,525

Depreciation 37,888 - - - 37,888

Amortization 116,860 - - - 116,860

EBITDA $908,954 $6,308 $9,082 $1,043 $925,387


(1) For the three adjustments, the company used a 35% tax rate as these adjustments are all US-based items and 35% is the statutory tax rate in the United States.



24

Reconciliations V


EBITDA Reconciliation

Adjustment

2011 Full Year GAAP

Remeasurement Gain on Intercompany Debt

2011 Full Year Adjusted

Net Earnings $427,247 (4,698) $422,549

Taxes 177,740 (2,211) 175,529

Interest 63,648 - 63,648

Depreciation 36,780 - 36,780

Amortization 103,363 - 103,363

EBITDA 808,778 (6,909) 801,869

FY’11 Reconciliation of EBITDA


EBITDA Reconciliation

2010 Full Year GAAP No Adjustments 2010 Full Year

Adjusted

Net Earnings $322,580 - $322,580

Taxes 125,814 - 125,814

Interest 66,533 - 66,533

Depreciation 36,728 - 36,728

Amortization 86,293 - 86,293

EBITDA 637,948 - 637,948

FY’10 Reconciliation of EBITDA

Roper Technologies, Inc.

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EPG Annual Spring Conference - Roper Technologies

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