Roper Technologies, Inc. · NASDAQ:ROP
Roper Technologies — Stifel Industrials Conference 2016
26 slides from Roper Technologies's conference presentation, Jun 13, 2016
Slide 1: Stifel Industrials Conference
Roper Technologies, Inc. Stifel Industrials Conference June 13, 2016
Slide 2: Safe Harbor Statement
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
Slide 3: Creating Shareholder Value
Creating Shareholder Value Strategy Results Software and Engineered Products & Services for Diverse Niche Markets Significant Growth Platforms • Leadership in Favorable Markets • Diverse End Markets, Broad Customer Base High Gross Margins Recurring Revenue Strong Operations Management Outstanding Ca
Slide 4: Total Shareholder Return
Total Shareholder Return Comparison of Cumulative Total Shareholder Return Roper Technologies, Inc. S&P 500 $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 IPO '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 Note: Char
Slide 5: Results
Results In $ Millions EBITDA Operating Cash Flow $1,245 $929 21% 24% Compound Annual CAGR CAGR Shareholder Return (2003 - 2015) $130 $71 19% 2003 2015 2003 2015 Asset Intensity* Cash Return on Investment Net Working Capital Gross Fixed Assets / Sales / Sales 7% 20% ~150% 18% (900Bps) (1,500Bps) 11%
Slide 6: Roper Technologies Today
Roper Technologies Today » Diversified Technology Company • Focused, Independent Businesses with Leadership Positions in Niche Markets • 61% Gross Margin; 35% EBITDA Margin • Asset Light Model; ~1% Cap Ex / Sales; Low Working Capital • ~70% of EBITDA from Medical and RF Tech/Software Segments • 50%+
Slide 7: Governance Process Enhances Growth and Drives Financial Discipline
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;
Slide 8: Cash Return on Investment
CRI Discipline Drives Cash Flow Cash Earnings C ash Net Income + D&A – A Diversified Growth Company Maintenance Cap-Ex Gross Investment R eturn on = Click to edit Master Ititle nvestment Net Working Capital* + Net PP&E + style Accumulated Depreciation » Common Metric throughout Roper Businesses » Fo
Slide 9: Roper Organic Growth
Roper Organic Growth 10 Year Average Organic Revenue Growth (2006-2015) » Organic Growth is a Key 6% Component of Roper’s Strategy 5% 5% for Long Term Cash Flow Compounding 4% » Long History of Growth Across 3% 3% Segments and Businesses » Management Incentives Tied to Growth, Not Budgets » We Targe
Slide 10: Sales Growth & Margin Expansion
Sales Growth & Margin Expansion In $ Millions Revenue* 0.55 0.65 0.5 $3,593 60.7% $3,552 59.3% Gross 0.6 58.6% $3,272 0.45Margin* $3,003 56.0% $2,797 0.4 0.55 54.2% EBITDA 33.8% 34.6% 32.8% 0.35Margin* 0.5 30.8% 28.7% 0.3 0.45 0.25 0.4 0.2 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 Outstandin
Slide 11: Compelling Cash Conversion
Compelling Cash Conversion In $ Millions $1,000 $900 » Free Cash Flow Has Exceeded Net $800 GAAP Net Income Free Cash Flow* Income for 18 $700 Consecutive Years $600 $500 » Expect Strong Cash Conversion to $400 Continue $300 $200 » ~$1.0 Billion of Operating Cash Flow $100 Expected in 2016 $0 2003 2
Slide 12: 2015 Segment Performance
2015 Segment Performance In $ Millions $1,223 $1,037 A Diversified Growth Company $745 Revenue $588 Click to edit Master title style $556 $376 EBITDA* $183 $234 Energy Ind Tech RF & Software Medical EBITDA* 31% 31% 36% 45% Margin • Control Software • Data Collection / • Electronic Tolling • Medical
Slide 13: Medical Solutions
Medical Solutions Medical Software / Services (~45% of Segment Revenue) Segment Revenue » Leading Provider of Laboratory Software Solutions for Large Hospitals, IDNs, and Anatomic Pathology » Leading Provider of Services andATechnologies Diversifiedto Growth Alternate Company Medical Site Healthcare
Slide 14: RF Technology & Software
RF Technology & Software Software and SaaS (~45% of Segment Revenue) Segment Revenue » Business Management Software for Law Firms » Freight Matching SaaS Network A Diversified » SaaS Trading Network & Business Growth Company Intelligence Solutions for the Food Industry Toll & Software Traffic » Appl
Slide 15: Industrial Technology
Industrial Technology Segment Revenue Water Meter & Technology (~45% of Segment Revenue) » Automatic Meter Reading & Water Meter Devices A Diversified Growth Company Fluid Handling Fluid Handling (~30% of Segment Revenue) Water Meter & Technology » Pumps for Water, Agriculture, O&G and Industrial Ap
Slide 16: Energy Systems & Controls
Energy Systems & Controls Oil & Gas (~55% of Segment Revenue) Segment Revenue » Control Systems, Software and Service for Compressors & Turbines in LNG, Downstream, A Diversified Growth Company Pipeline and Upstream Applications Oil & Gas Industrial » Analytical Instrumentation Serving Downstream /
Slide 17: Acquiring High Performance Companies
Acquiring High Performance Companies Deployed $5B+ in Acquisitions » We Only Acquire High CRI (2011-Today) Businesses » High Recurring Revenue » Asset-Light with Powerful Cash Flow Characteristics Medical Software and Services » Leaders in Niche Markets Application with Competitive Software Advantag
Slide 18: The Roper Strategy
The Roper Strategy Strategy Results Software and Engineered Products & Services for Diverse Niche Markets Significant Growth Platforms • Leadership in Favorable Markets • Diverse End Markets, Broad Customer Base High Gross Margins Recurring Revenue Strong Operations Management Outstanding Cash Flow/
Slide 19: Appendix
Appendix 19
Slide 20: Reconciliations I
Reconciliations I (in Thousands) Full Year 2015 Industrial Energy Systems & Medical & Scientific Margin Reconciliation RF Technology Technology Controls Imaging GAAP Revenue A Diversified $745,381 Growth Company $587,745 $1,215,318 $1,033,951 Add: SHP / DI / SWI / Strata / Atlas Adj 0 0 7,831 0 Add:
Slide 21: Reconciliations II
Reconciliations II Full Year 2015 Reconciliation of GAAP to Adjusted; Revenue, Gross Profit, and EBITDA Adjustments Purchase Purchase Accounting Accounting Full Year Full Year 2015 GAAP A Diversified Growth Adjustments to Acquired Company Write-Down of Adjustments to Investment Gain on Sale of Busin
Slide 22: Reconciliations III
Reconciliations III Full Year 2014 Reconciliation of GAAP to Adjusted; Revenue, Gross Profit, and EBITDA Adjustments Purchase Purchase Accounting Accounting Full Year Full Year 2014 GAAP A Diversified Growth Adjustments to Acquired 2014 Company Adjustments to Acquired Adjusted Deferred Inventory (Al
Slide 23: Reconciliations IV
Reconciliations IV Full Year 2013 Reconciliation of GAAP to Adjusted; Revenue, Gross Profit, and EBITDA Adjustments Purchase Purchase Accounting Accounting Hansen Full Year Full Year 2013 GAAP A Diversified Growth Adjustment to Acquired Company Adjustments to Special Charge 2013 Acquired Adjusted De
Slide 24: Reconciliations V
Reconciliations V 2012 Reconciliation of GAAP to Adjusted; Revenue, Gross Profit, and EBITDA Adjustments Sunquest Fair Sunquest Value Adjustment Debt 2012 2012 GAAP A Diversified Growth Company Acquisition-Related Expenses to Acquired Deferred Revenue Extinguishment Charge Adjusted (All Numbers are
Slide 25: Reconciliations VI
Reconciliations VI FY’11 Reconciliation of EBITDA Adjustment (All Numbers are In Thousands) Remeasurement Gain 2011 GAAP 2011 Adjusted EBITDA Reconciliation on Intercompany Debt Net Earnings A $427,247 Diversified Growth (4,698) Company $422,549 Taxes 177,740 (2,211) 175,529 Interest 63,648 - 63,648
Slide 26: Roper Technologies, Inc.
Roper Technologies, Inc.
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