2011 Half Year Results 30 th June 2011

1. 2011 Half Year Results 30th June 2011 Mark Vernon – Chief Executive David Meredith – Finance Director

2. Overview of Half Year 2011 results • Record sales up 11% (10% organic) – growth in all segments • Operating profit margin improved to 19.9% • Pre-tax profit up 15% • Completed equipment relocations for Cheltenham manufacturing site consolidation • High first-half capital expenditure (£20 million) • Strong balance sheet * See Appendix V for definition of profit measures

3. Segment revenue changes Asia Watson- EMEA Pacific Americas Marlow FX Sales 2011 EMEA Asia Pac Americas WM Total +17% +0% +8% +12% +11% £m 122.7 65.2 63.9 55.9 307.7 £9.0m £7.9m £7.2m £6.3m £m Organic sales increase over 2010 Steam Specialties +8% Watson-Marlow +17% £0.3m % Chg yoy over 2010 Organic Sales +10% Acquisitions +1% FX +0% TOTAL +11% Based on sales at constant currency

4. Segment operating profit changes Asia Watson- EMEA Pacific Americas Marlow FX Profit 2011 EMEA Asia Pac Americas WM Corp Exp Total +8% +14% +0% +20% +19% £m 20.5 15.6 12.6 16.1 -3.6 61.2 £2.6m £2.1m £1.9m £m £1.5m Mexico £0.2m % Chg yoy over 2010 Operating profit +14% Op margin 2011 19.9% Op margin 2010 19.3% Based on adjusted profit at constant currency - see Appendix V

5. Financial aspects • Record first half operating profit margin • Improved finance income – DB pensions • Tax rate marginally lower • FX immaterial * See Appendix V for definition of profit measures

6. Operating profit margin –Trend improvement Key H1 H2 * See Appendix V for definition of profit measures

7. Cash flow • Working capital outflow – sales growth, higher stocks and seasonal pattern • High capex – over £20m • £5m increase in dividend payments • Closing net cash £12m * See Appendix V for definition of profit measures

8. Key performance indicators App I EPS / DPS App II ROCE App III Cash conversion App IV FX App V Adjusted profit • Good organic sales growth • Record first half operating profit margin • Improved return on capital employed • Lower cash conversion – working capital and high capex • Higher working capital to sales – FX, increased raw materials and buffer stocks * See Appendix V for definition of profit measures

9. Underlying operating margin factors Higher impacts Lower impacts

10. Europe, Middle East & Africa (EMEA) • Two-speed recovery • Sales strongly ahead in emerging Europe, Middle East and Africa • Good growth in Germany • Continued difficult conditions in France, Italy and Spain • Physical moves completed in Cheltenham manufacturing site consolidation • Lower profits in manufacturing operations *Based on adjusted Operating profit – see Appendix V

11. Asia Pacific • Good growth in nearly all product lines • Strong progress in China – continued expansion of sales network • New manufacturing plant in Shanghai performing well – output accelerating • Korean sales and profits ahead • Good results from smaller operations in region • Remarkable performance in our small Japanese operation • Modest FX gains – strong Australian dollar *Based on adjusted Operating profit – see Appendix V

12. Americas • Good sales growth – half from Mexico • North American market conditions normalised – higher project activity in Canada • Higher sales in USA – good flow metering projects • Good sales and profit growth in Latin America • Results boosted by consolidation of Mexico • Improved operating profit margin – higher sales, cost controls, Mexico and Brazil *Based on adjusted Operating profit – see Appendix V

13. Watson-Marlow Pumps • Widespread sales growth • Continued expansion of geographic coverage and sector-focused sales resource • Further integration and development of recent acquisitions • Strong growth in emerging markets • Strong sales in industrial and mining markets but weaker in water & wastewater • FX headwind – weaker US dollar impacted margin *Based on adjusted Operating profit – see Appendix V

14. Segmental revenue changes –Asia Pacific rises in first half 2011 EMEA 40% (2010: 41%) Americas 21% (2010: 21%) Asia Pacific 21% (2010: 20%) • Good geographic spread • Diverse industry and customer base • 1,300 direct sales and service engineers in over 50 countries Watson-Marlow Pumps 18% (2010: 18%) Sales are by geographical location of operations

15. Group geographic revenues -Good emerging market exposure EMEA 48% (2001: 59%) Emerging markets 9% (2001: 5%) Asia Pacific 24% (2001: 18%) Americas 28% (2001: 23%) Emerging markets 19% (2001: 12%) Emerging markets 10% (2001: 5%) Sales are by geographical location of operations

16. Summary • Market conditions improved in the first half • Sales growth of 11% - well spread across all segments • Record first half operating profit and margin • Manufacturing site consolidation in Cheltenham – physical moves complete • Continued investment in sales development and new product development • Strong balance sheet – net cash £12m • Interim dividend up 14% – confidence in prospects • Increasingly alert to the impacts on global economy and industrial production from uncertainty in financial markets, high debt levels and government finances

17. Spirax-Sarco Engineering plc2011 Half Year Results 30th June Focused on consistent growthand creating shareholder value

18. Appendix I -Investing for long term delivers results 43 year dividend record Key EPS Special dividend DPS Final DPS Interim Penceper share *Based on adjusted Operating Profit – see Appendix V. From 2004 figures prepared under IFRS

19. Appendix II -Return on capital employed * See Appendix V for definition of profit measures

20. Appendix III -Cash conversion • See Appendix V for definition of profit measures • ** Property, plant, equipment, software and development

21. Appendix IV -Currencies FX movements overall immaterial to profit in first half 2011 – weaker dollar matched by gains elsewhere

22. Appendix V -2011 Note on profit measures All profit measures exclude the amortisation of acquisition-related intangible assets of £2.2m (2010: £1.6m) of which £0.2m (2010: £0.2m) relates to Associates. 2010 excludes the gain of £8.2m on revaluation of investment of a company previously treated as an Associate, net of professional costs of £0.2m in relation to acquisitions.