Investor Site Visit 29 September, 2016 Agenda 11.00 Halma 11.30 - PowerPoint PPT Presentation

Investor Site Visit 29 September, 2016

Agenda 11.00 Halma 11.30 Infrastructure Safety 12.15 Facility Tour – part 1 13.00 Apollo Fire Detectors 13.30 Lunch 14.30 Facility Tour – part 2 15.15 Close 15.30 Departures to station Halma Investor Day, September 2016

Consistent strategy, sustained success Disciplined market/product selection Enabling Simple organisation financial & culture model Halma Investor Day, September 2016

Sustained growth 900 180 £m £m Revenue Profit 800 160 700 140 600 120 500 100 400 80 300 60 200 40 100 20 0 0 07 08 09 10 11 12 13 14 15 16 07 08 09 10 11 12 13 14 15 16 Halma Investor Day, September 2016

Sustained strong returns Return on Total Invested Capital* Return on Sales % % 24 20 22 16 20 12 18 16 8 14 4 12 10 0 07 08 09 10 11 12 13 14 15 16 07 08 09 10 11 12 13 14 15 16 * post-tax profit Halma Investor Day, September 2016

Sustained strong returns – dividend per share* 14 12 10 pence 8 6 4 2 0 72/73 74/75 76/77 78/79 80/81 828/3 84/85 86/87 01/1 90/91 92/93 94/95 96/97 98/99 00/01 02/03 04/05 06/07 08/09 10/01 12/13 14/15 * Adjusted for scrip issues Halma Investor Day, September 2016

Balance between organic and acquisition revenue growth 20 acquisition 16 Revenue Growth (%) organic 12 8 4 0 07 08 09 10 11 12 13 14 15 16 Halma Investor Day, September 2016

M&A activity since 2006/07 200 192 160 (proceeds) / Spend £m 143 120 105 80 89 40 42 14 4 3 22 21 0 (2) (5) (3) (20) (20) (40) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year end 4 2 2 1 7 2 6 1 3 4 No.Acq’ns No.Disp’ls - 1 - - - 1 1 - 1 - Halma Investor Day, September 2016

A scalable growth model £m 200 100 180 160 80 140 N o Halma Profit 120 60 Companies 100 80 40 60 40 20 20 0 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Year Halma Investor Day, September 2016

Sustained organic growth  Relentless increased investment  innovation  international expansion  talent development  High quality portfolio  resilient market growth drivers  valuable product niches  active M&A  diversity Halma Investor Day, September 2016

Diversity provides resilience £m 900 800 700 600 E&A Revenue 500 Medical 400 Infrastructure 300 Process 200 100 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Halma Investor Day, September 2016

INFRASTRUCTURE SAFETY SECTOR Paul Simmons Sector Chief Executive 29 September 2016

INFRASTRUCTURE SAFETY SECTOR Management Group CEO A. Williams Acquisition Sector FD Sector CEO Executive Photo needed G. van der Pant P. Simmons C. Liu Sector VP Sector VP Vacancy M. Zhang

INFRASTRUCTURE SAFETY SECTOR Agenda 1. Introduction to Infrastructure Safety 2. Growth strategy: International growth 3. Growth strategy: New products 4. Growth strategy: Acquisitions 5. Growth strategy: Talent

INFRASTRUCTURE SAFETY SECTOR “ To protect commercially & publically “ owned infrastructure assets and improve the safety & mobility of people.

INFRASTRUCTURE SAFETY SECTOR Halma’s largest sector by contribution per 2015/16 Final Results

INFRASTRUCTURE SAFETY SECTOR What we make Door safety Fire Fire Elevator Security (People & detection suppression safety vehicle flow) 47% 10% 13% 20% 10% of sector revenue of sector revenue of sector revenue of sector revenue of sector revenue

INFRASTRUCTURE SAFETY SECTOR Strength & Resilience Our products are often subject to non-discretionary spend: giving us unusual resilience to general market trends ~ 60% of revenue comes We benefit from from existing infrastructure, construction reducing cyclicality: investment as new buildings require our • System upgrades • Refurbishments products • Regulatory compliance

INFRASTRUCTURE SAFETY SECTOR Growth drivers  Increasingly demanding Health &  Need for increased efficiency in Safety regulations buildings and movement  Continuing trend of urbanisation  Need for protection from increasing threats to security  Growing and ageing population

INFRASTRUCTURE SAFETY SECTOR Evolution: Revenue £265m £ 0m 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 Note: 3rd party revenue as reported in the Annual Report and Accounts. Growth from 1983-2000 averaged in graph.

INFRASTRUCTURE SAFETY SECTOR Evolution: Revenue £265m 7.3% CAGR over last 10 years £ 0m 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016

INFRASTRUCTURE SAFETY SECTOR Worldwide Fire Detection Fire Suppression Elevator Safety Door Safety Security

INFRASTRUCTURE SAFETY SECTOR Revenue

INFRASTRUCTURE SAFETY SECTOR Agenda 1. Introduction to Infrastructure Safety 2. Growth strategy: International growth 3. Growth strategy: New products 4. Growth strategy: Acquisitions 5. Growth strategy: Talent

INFRASTRUCTURE SAFETY SECTOR Growth strategy – emerging markets  China  Strong presence – five companies sales presence (3 full functions)  Significant investment underway in local products  India  Urbanisation/increasing middle class  Five companies have sales presence  R&D centre c. 30 people by 2017  Russia & Latin America – interest cooled  Southeast Asia - area of opportunity & investment

INFRASTRUCTURE SAFETY SECTOR Agenda 1. Introduction to Infrastructure Safety 2. Growth strategy: International growth 3. Growth strategy: New products 4. Growth strategy: Acquisitions 5. Growth strategy: Talent

INFRASTRUCTURE SAFETY SECTOR Growth strategy – new products  Strengthen core  e.g. Panachrome +, Fireray…  Low cost R&D: Texecom & Apollo in Bangalore  Geographical expansion  Local R&D (Avire/BEA/Apollo in China)  e.g. Apollo China  Adjacent markets  e.g. Texecom connect R&D spend is 5.3% of revenue

INFRASTRUCTURE SAFETY SECTOR Agenda 1. Introduction to Infrastructure Safety 2. Growth strategy: International growth 3. Growth strategy: New products 4. Growth strategy: Acquisitions 5. Growth strategy: Talent

INFRASTRUCTURE SAFETY SECTOR Growth strategy – acquisitions  Advanced joined in 2014:  added fire control panels and systems  Firetrace joined in 2015:  our entry into suppression – specialised area of micro environments  Seeking companies in core, adjacent or new markets:  Share IS’ growth drivers  Strong record of growth and potential  Strong management & financials

Growth strategy – acquisitions • Natural hazards: Earthquake, floods, pollution detection Access to • Manmade threats: Identity management & biometrics, border security, counter terrorism New Markets • User comfort, efficiency & safety: smart traffic/parking, waste management Expansion • Natural hazards: fire systems, leaks • Manmade threats: access control, CO into • User comfort, efficiency & safety: people counting, lift monitoring, smart Adjacencies buildings, disabled & elderly assistance, IoT gateways • Natural hazards: fire detection components, niche fire suppression Strengthen • Manmade threats: Intruder detection the Core • User comfort, efficiency & safety: elevator doors, displays & phones, commercial doors

INFRASTRUCTURE SAFETY SECTOR Sector strategy – potential new applications  Existing markets Fire Fire Elevator People & vehicle Security + New & Adjacent mkts (Acq) detection suppression safety flow +    Public buildings & spaces      Commercial buildings + +   Air, sea, road & rail + +  Transport infrastructure     Industrial buildings + Utilities  Defence   Residential

INFRASTRUCTURE SAFETY SECTOR Introduction to Firetrace

INFRASTRUCTURE SAFETY SECTOR Agenda 1. Introduction to Infrastructure Safety 2. Growth strategy: International growth 3. Growth strategy: New products 4. Growth strategy: Acquisitions 5. Growth strategy: Talent

INFRASTRUCTURE SAFETY SECTOR Growth strategy – talent  Recruit more than our fair share of talent  The “Halma story”  Top Grading (A players lead recruitment) & assessment tools  Build “Digital capability”  Talent mind-set  9 box: expectations on development investment & performance improvement  Development  Halma development programmes  Coaching

INFRASTRUCTURE SAFETY SECTOR Strategy summary New products Acquisitions New applications Talent development Geographic expansion

Q&A…  Positioned as a key player in its market  A model for all of our Process Safety companies

APOLLO FIRE DETECTORS Halma Investor Day 29 th September 2016 Havant, UK

PROTECTING LIVES & ASSETS GLOBALLY Emirates Palace, Abu Dhabi  Apollo supplies fire detection and notification devices into commercial buildings Kremlin, Emirates Palace, Q1 Residential Skyscraper Moscow, Russia Dubai, UAE Surfer’s Paradise, Australia The Shard & Tower Bridge, London UK Statue of Liberty New York, USA Windsor Castle, London U K