Presentation Year ended 30 November 2015 Ben Stocks Chief - PDF document

Specialist filtration & environmental technology Presentation Year ended 30 November 2015 Ben Stocks Chief Executive Chris Tyler Finance Director 1

Summary Consistent strategy delivering results In the year ended Consistent 2010-2015 30 November strategy 2015 9% CAGR 7% Niche in revenue Underlying revenue growth positions £57m in growing, 8% EPS cash from regulated markets growth to 15.5p operations £10.7m New product £22m Net cash development invested and intellectual 49% property £20m return on operating £9.7m net debt to capital employed £10.7m net cash 2

Specialist filtration And environmental technology Specialist filters are used to protect costly or complex downstream systems Attractive business characteristics Robust demand drivers: Barriers to entry: Niche positions Secular trends Specialist design skills Long life cycles Regulation/legislation Engineering skills Bespoke Maintenance schedules Patent protection Consumable products Quality accreditation 3

Consistent strategic And operational objectives Long-term growth from developing specialist filtration and environmental technology businesses both organically and by acquisition 1 2 3 4 A focus on Concerted new Geographic Generate cash to regulated markets product expansion to invest in: with long-term development support key Organic growth growth prospects markets Acquisitions Now core to revenue growth Four key markets Dividends Good prospects for future growth 4

1 2 3 4 A focus on regulated markets With long-term growth prospects Markets Regulation Market Growth and other specific accreditations 5.0% Growth in pax revenue FAA, CAA, EASA Aviation miles 2014 - 2034 p.a. (Source: Boeing 2015) Energy and 11.5% Growth in gasification International nuclear standards: industrial 2011 - 2016 NQA1, ASME, etc p.a. process (Source: US DOE 2010) Growth in water EPA, SEPA, EU water directives 5.6% Environmental Approved methods: analysis consumables laboratory p.a. 2011 - 2016 supplies (Source: SDI Research 2012) Growth in primary 6.0% ISO and customer Molten aluminium usage 2016 accreditations; extensive metals (Source: Alcoa 2016) p.a. qualification requirements 5

1 2 3 4 Main markets And operating companies Main operating Approx share Business division Principal markets companies of Group sales 15% Microfiltration Aviation Porvair Filtration Group 35% Energy and industrial process Seal Analytical 20% Environmental laboratory supplies Porvair Sciences 30% Metals Filtration Molten metals SELEE Corp 6

1 2 3 4 Strong market positions And concerted new product development Aviation Recent new products Niche positions Fuel systems Boeing, Airbus & other fuel tank inerting filters Coolant systems A380 & 787 coolant filters A350 Hydraulics Airbus NEO Growth drivers Competitive advantage Aircraft build rates Qualified, installed base Maintenance schedules Design engineering skills New programmes Range of media Retrofit: inerting Design protection 7

1 2 3 4 Strong market positions And concerted new product development Energy and industrial process Recent new products Niche positions E-gas™: Posco Hot gas and gasification E-gas™: Reliance Pulse jet systems E-gas™: SG Solutions Nuclear remediation E-gas™: CNOOC Polymer production UK Government remediation Growth drivers Competitive advantage Gasification build rates Installed base Maintenance schedules Range of media Nuclear clean-up Design engineering: pulse Energy efficiency and jet systems security Design protection 8

1 2 3 4 Strong market positions And concerted new product development Environmental laboratory supplies Recent new products Niche positions Upgraded instruments: Analysis of inorganic 2012 chemicals in water 2013 2014 Associated consumables Reengineered new Porous plastics instruments: 2015 2016 Growth drivers Competitive advantage Regulated water testing Installed base Higher environmental Instrument design protection standards Porous plastics IP and Developing markets related patents Bioscience growth 9

1 2 3 4 Strong market positions And concerted new product development Molten Metals Niche positions Recent new products Aluminium cast house Selee CSX™ filtration Selee IC™ Gray and ductile iron filtration Selee SA™ Super alloys Range extensions Growth drivers Competitive advantage Aluminium consumption Patent protection US auto and light truck production Metallurgical expertise Increased use of high grade and exotic alloys US / China manufacturing Chinese expansion 10

1 2 3 4 Geographic expansion to key markets: Recent developments and 2015 revenue by destination UK 16% Europe Americas 14% 47% Asia 22% Asia US UK and Europe First phase Xiaogan, Caribou, ME, plant New plant in New Milton China, plant completed extended opened in 2015 in 2013 New premises in Ashland Second Xiaogan plant undergoing fit out opened in 2015 Fiber Ceramics acquired and moved to Hendersonville NC Microfiltration plants Metals Filtration plants 11

1 2 3 4 Consistent strategy: Five years of growth and cash generation EPS growth continuing 9% revenue CAGR since 2010 (2014 exceptional) 18 120 16 100 Half year Half year 14 Pence per share Final £ millions Final 12 80 10 60 8 6 40 4 20 2 0 0 2010 2011 2012 2013 2014 2015 2010 2011 2012 2013 2014 2015 Revenue growth coming from US and Asia More than £20m net cash generated 120 16 Others Half year 100 11 Final Asia £ millions £millions 6 80 Americas 1 60 Europe 2010 2011 2012 2013 2014 2015 -4 United 40 Kingdom -9 20 -14 0 -19 2010 2015 12

Record performance For the year ended 30 November 2015 Revenue down Underlying revenue up Revenue up (8) % 9 % 3 % to £95.8m in Microfiltration in Metals Filtration PBT up EPS up Net cash up to 9 % 8 % £10.7 m to £9.2m to 15.5p 13

Income statement For the year ended 30 November 2015 2015 2014 £000 £000 Revenue 95,828 104,004 Operating profit 9,801 9,205 Interest (604) (785) Profit before tax 9,197 8,420 Tax (2,241) (2,087) Profit after tax 6,956 6,333 EPS (basic) 15.5p 14.4p 14

Cash flow For the year ended 30 November 2015 2015 2014 £000 £000 Operating cash flow before working capital movements 12,517 11,968 Working capital movement 777 2,188 Interest (143) (328) Tax (1,836) (2,205) Capital expenditure (net of disposals) (3,337) (5,096) Net cash from operations 7,978 6,527 Acquisitions (1,087) (707) Proceeds from issue of shares 34 199 Dividends paid (1,479) (1,325) Exchange movements 28 (9) Net cash at 1 December 5,264 579 Net cash at 30 November 10,738 5,264 15

Metals Filtration Results and progress – year ended 30 November 2015 2015 2014 Revenue to £31.0m record – 3% growth £000 £000 4% lower at constant currency: Revenue 31.0 30.1 Agriculture and prior year one-off Operating profit 2.4 2.6 Break even in China with start up Good performance despite strong dollar: Steady market share gains from patented products Recent developments Fiber Ceramics acquired and moved to Hendersonville Second Chinese plant built and commissioned 2016 outlook Positive start to 2016 Good early results from Chinese customer trials 16

Microfiltration Results and progress – year ended 30 November 2015 2015 2014 2013 9% underlying growth £000 £000 £000 Large projects building and commissioning going well: Revenue 64.8 73.9 55.8 £14.0m lower revenue in 2015 Gasification spares, US industrial and bioscience strong Operating profit 9.7 8.7 8.6 Quieter year in aerospace and nuclear Operating margins improved to 15% Recent developments New UK plant opened to expand capacity US plant extended Record year for Seal; more product releases planned 2016 outlook Healthy order books Return to growth for aerospace and nuclear 17

Microfiltration Acquisition of TEM Filter Company Microelectronics filtration Idaho, US based Niche market Highly regulated Exacting technical specifications Integration underway Porvair adds: TEM brings: Wider range of media Well designed product range International sales reach Market knowledge Funds for investment Distribution 18

2016 – 2018 opportunities Market growth, market share gains and margin growth Energy and Laboratory Molten Aviation industrial supplies metals process Market growth Regulated markets with long term growth prospects – long product lifecycles Market New formula for Inerting developments Large contract pipeline, Growing installed base share gains Chinese market spares and service and product portfolio Airbus A380 and • Two new platforms Caribou growth and Steady market share Boeing 787 TEM integration gains from IP Bioscience licensing protected ranges growth with Thermo A350 and NEO Sub-contract filter Product range manufacture Chromatrap range extensions development Margin US expansion US sales and Improved analyser China plant expansion growth manufacturing range designs Selee Metallurgical Services UK capacity increases Differentiated hot US manufacture of two Incremental process gas filters product ranges improvements 19