Introduction

1. Spirax-Sarco Engineering plc 2010 Half-Year Results 30th June 2010 Introduction Bill Whiteley – Chairman Mark Vernon – Chief Executive David Meredith – Finance Director

2. Constant 2010 2009 Change currency Revenue £277.0m £251.6m +10% +8% Operating profit* £53.5m £37.8m +41% +38% Margin* 19.3% 15.0% Pre-tax profit* £54.9m £38.2m +44% +40% EPS* 49.8p34.9p +43% +38% DPS 13.0p10.5p +24% +24% Overview of 2010 results • Sales up 10% - increase of 8% at constant currency • Operating profit margin at record 19.3% • Pre-tax profit up 44% • Interim dividend increase of 24% • Strong balance sheet with £20m net cash * All profit measures exclude the amortisation of acquisition-related intangible assets of £1.6m (2009: £1.0m) of which £0.2m (2009: £0.2m) relates to Associates, and the revaluation of investment arising from the acquisition of a company previously treated as an Associate of £8.0m (2009: nil) net of acquisition costs. They also exclude headcount reduction costs of £nil (2009: £7.0m). The tax effect on these items was £0.2m (2009: £2.1m)

3. % Chg yoy H1 2010 Organic Sales +6% Acquisitions +2% FX +2% TOTAL +10% Revenue changes Asia Watson- EMEA Pacific Americas Marlow FX Increase over 2009 EMEA +1% Asia Pacific +9% Americas +11% Watson-Marlow +27% Exchange +2% Total +10% £4.3m £0.4m £5.9m £10.2m £4.5m +27% +12% Maso +11% £m +2% Mexico +9% +2% Sales 2010 £m EMEA 112.8 Asia Pacific 56.7 Americas 59.0 Watson-Marlow 48.5 Total 277.0 +1% Based on sales by segments at constant currency

4. Operating profit changes Asia Watson- Corp EMEA Pacific Americas Marlow Exp FX Change over 2009 EMEA +20% Asia Pacific +24% Americas +75% Watson-Marlow +60% Exchange +3% Total +41% Profit 2010 £m EMEA 18.6 Asia Pacific 13.1 Americas 10.9 Watson-Marlow 14.0 FX/Corp Exp -3.0 Total 53.5 +£3.2m +£2.5m +£4.7m +£5.2m +£1.0m +£1.0m +60% +75% +20% £m +24% +3% -3% % Chg yoy H1 2010 Operating profit +41.4% Op margin 2010 19.3% Op margin 2009 15.0% Based on adjusted profit by segments at constant currency

5. Financial aspects Constant 2010 2009 Change currency Revenue £277.0m £251.6m +10% +8% Operating profit* £53.5m £37.8m +41% +38% Margin* 19.3% 15.0% Net finance expense -£0.4m -£1.0m Associates £1.8m £1.4m Profit before tax* £54.9m £38.2m +44% +40% Tax rate (excl Associates)* 31.4% 31.5% EPS* 49.8p 34.9p +43% +38% DPS 13.0p 10.5p +24% +24% • Operating profit margin record 19.3% • Lower finance expense - pensions • Tax rate unchanged • 2% FX gain on sales – expect neutral for full year * All profit measures exclude the amortisation of acquisition-related intangible assets of £1.6m (2009: £1.0m) of which £0.2m (2009: £0.2m) relates to Associates, and the revaluation of investment arising from the acquisition of a company previously treated as an Associate of £8.0m (2009: nil) net of acquisition costs. They also exclude headcount reduction costs of £nil (2009: £7.0m). The tax effect on these items was £0.2m (2009: £2.1m)

6. £ millions 2010 2009 Adjusted operating profit 53.5 37.8 Depreciation and share schemes9.8 9.7 Working capital (3.8) 0.2 Adjusted cash from operations 59.5 47.7 Interestpaid(0.3) (0.3) Tax paid (14.9) (15.4) Capital expenditure (net incl Development) (11.9) (15.1) Dividends paid (net) (18.0) (17.4) Underlying cash flow 14.4 (0.5) Special pension pay’ts/severance/provisions(3.8) (11.1) Treasury shares (net) 3.8 0.4 Acquisitions (2.5) (1.3) Cash flow for the period 11.9 (12.5) Cash flow £m Net cash 31.12.09 8.0 Cash flow 11.9 Exchange 0.3 Net cash 30.06.10 20.2 • Strong profit increase • Working capital outflow only £3.8m – stock weeks and debtor days improved • Good underlying cash inflow of £14.4m • Closing net cash of £20.2m

7. Key financial statistics H1 2010 H1 2009 Operating profit margin* 19.3% 15.0% Amortisation of acquisition intangibles £1.6m £1.0m Sales per employee (average for period) +9% -8% Net cash £20.2m £4.1m Cash from operations* £59.5m £47.7m Capital expenditure as % of depreciation 137% 181% Cash conversion* 89% 86% Pension liability IAS19 basis (after tax) £64.6m £65.0m Return on capital employed (average)* 39.7% 34.1% App I EPS / DPS App II ROCE App III Cash conversion App IV Currencies • Return on capital employed improved to 39.7% • Good cash conversion • Continued investment – capex at 1.4x depreciation * All profit measures exclude the amortisation of acquisition-related intangible assets of £1.6m (2009: £1.0m) of which £0.2m (2009: £0.2m) relates to Associates, and the revaluation of investment arising from the acquisition of a company previously treated as an Associate of £8.0m (2009: nil) net of acquisition costs. They also exclude headcount reduction costs of £nil (2009: £7.0m). The tax effect on these items was £0.2m (2009: £2.1m)

8. Segmental analysis of revenue Segmental analysis of revenue 20102009 EMEA 40.7% 45.0% Asia Pac 20.5% 19.5% Americas 21.3% 20.3% WM 17.5%15.2% Total 100.0% 100.0% EMEA 41% Americas 21% Asia Pacific 20% Watson-Marlow Pumps 18% • Good geographic spread • Diverse industry and customer base • 1,200 direct sales and service engineers in over 56 countries • Expanding manufacturing in Asia • Watson Marlow sales concentrated in Europe and Americas Sales are by geographical location of operations

9. Europe, Middle East & Africa (EMEA) constant 2010 2009 change currency Sales £112.8m £113.2m -1% +1% Operating profit* £18.6m £15.6m +19% +20% Margin* 16.5% 13.8% • Uneven market recovery – fragile and mixed • Small negative currency impact offset by Turkey distributor acquisition • Strong performance from Germany and Russia • Marginally lower sales and profits in UK Sales operation, but good project wins • Significantly higher volumes at manufacturing plants contributed to profit increase • Difficult trading conditions in France and Italy sales operations – lower profits in H1 • Overall good margin growth to 16.5% *Based on adjusted Operating profit

10. Asia Pacific constant 2010 2009 change currency Sales £56.7m £49.0m +16% +9% Operating profit* £13.1m £9.4m +39% +24% Margin* 23.0% 19.2% • Overall market conditions favourable but mixed across Southeast Asia • Favourable exchange benefits • Good sales growth across all product lines – project activity recovering • Completed new factory in Shanghai – now in production • Robust order book in Korea heading into second half • Continued good progress in India (reported as an Associate) • Strong margin growth to 23.0% *Based on adjusted Operating profit

11. Americas constant 2010 2009 change currency Sales £59.0m £51.0m +16% +11% Operating profit* £10.9m £6.0m +82% +75% Margin* 18.5% 11.7% • Markets recovered although still weak in Canada • Favourable exchange benefits from strong Brazilian real • Sales and profits well ahead in US although slowing demand in recent months • Robust sales and profits in Latin America – notably strong Brazil performance • Remaining 51% shareholding acquired in Mexico – accretive to Group margins • Strong trading margin improvement to 18.5% *Based on adjusted Operating profit

12. Watson-Marlow Pumps constant 2010 2009 change currency Sales £48.5m £38.3m +27% +27% Operating profit* £14.0m £8.9m +57% +60% Margin* 28.8% 23.2% • Most end markets recovering – pharmaceuticals slow to recover with fewer projects • Good recovery in EMEA – demand from OEM customers • Integration of MasoSine progressing – accretive to Watson-Marlow margins • New sales office opened in Argentina • Added selling resources in developing markets and for acquired businesses • Completed small distributor acquisitions in Australia, New Zealand and South Africa *Based on adjusted Operating profit

13. Key messages to drive long-term value Key messages to drive long-term value • Developing our two world-leading businesses –favourable organic growth prospects Sales growth at constant exchange • Good track record of organic growth • 38% of sales to developing markets • Continue to add sales and service engineers • Comparatively high energy prices on historic basis • Increasing pressures for environmental sustainability Organic sales grew 8.4% compounded annually from 2003 - 2008

14. Key messages to drive long-term value Key messages to drive long-term value • Investing to enhance the sales growth and profit prospects New £16m Shanghai factory • £50m capital investment program to upgrade manufacturing facilities, improve customer service, globalise footprint and reduce cost. • Increased product development spend by 50% since 2007 • Invested £58m since 2008 on bolt-on acquisitions that provide new products, technologies and geographic market access. New £6m Falmouth tubing plant

15. Key messages to drive long-term value Key messages to drive long-term value • Shaping our value proposition to address important secular drivers • Adding more sales & service engineers – 150 since 2006 • Expanding geographic market coverage – mostly developing markets • Increasing our technical training – comprehensive online tools, more plant audit capability • Developing broader range of auditing, services, products and packages – one stop shop Reduced site expertise due to fewer maintenance & operations personnel This industry trend creates expanded market opportunities for Spirax Sarco Customers looking to key suppliers to provide vital operations and maintenance expertise – want simple solutions

16. Improving trend in trading margin Improving trend in trading margin Key H1 H2 Historic second half improvement in operating margin due mainly to higher seasonal sales volume *Based on adjusted Operating profit

17. Summary Markets are recovering although uneven across Europe Benefiting from rebound in maintenance spending Poised to maximise on market opportunities Sequential trading margin maintained high level at 19.3% Net cash position of £20m Second half started well – easiest year-on-year comparisons in Q3 Uncertain global economic momentum but expect to see more normal second half bias of sales and profits

18. Spirax-Sarco Engineering plc 2010 Half-Year Results 30th June 2010 Focused on consistent growth Focused on consistent growthand creating shareholder value

19. Appendix I - Investing for long term delivers results Key: EPS DPS Final DPS Interim Penceper share 42 year dividend record 83.4 82.2 65.5 58.1 50.2 49.8 43.1 38.5 34.4 35.3 13.0 13.5 14.1 15.1 17.0 19.0 21.6 23.3 25.6 5.6 5.8 6.06.3 6.8 7.5 8.3 10.0 10.5 13.0 0102 03 04 05 06 07 08 09 10 H1 *Based on adjusted Operating Profit. From 2004 figures prepared under IFRS

20. Appendix II - Return on capital employed £’m 2010 2009 Capital Employed Property, plant & equipment 139.5 119.0 Inventories 93.191.8 Trade receivables 116.0105.8 Prepayments, other current assets 17.816.3 Trade, other payables & current tax (97.3) (69.7) 269.1263.2 Average Capital Employed 266.2242.9 Adjusted Operating Profit – last twelve months First half 53.537.8 Prior second half 52.1 44.9 Last twelve months 105.6 82.7 ROCE 39.7% 34.1%

21. Appendix III - Cash conversion £’m H1 2010 H1 2009 Adjusted cash generated from operations 59.547.7 Net capital expenditure (property, plant equipment, software and development) (11.9) (15.1) 47.6 32.6 Adjusted Operating Profit 53.537.8 Cash conversion 89% 86% Good cash conversion in First half * All profit and cash flow measures exclude the amortisation of acquisition-related intangible assets of £1.6m (2009: £1.0m) of which £0.2m (2009: £0.2m) relates to Associates, and the revaluation of investment arising from the acquisition of a company previously treated as an Associate of £8.0m (2009: nil) net of acquisition costs. They also exclude headcount reduction costs of £nil (2009: £7.0m).

22. Appendix IV - Currencies First Half First Half Year 20102009 2009 Average exchange rates Bank of England sterling index 79.6 78.6 79.6 US$ 1.53 1.50 1.56 Euro 1.15 1.11 1.12 RMB 10.46 10.23 10.65 Won 1,785 1,999 1,976 Period end exchange rates Bank of England sterling index 81.7 83.8 80.5 US$ 1.50 1.65 1.61 Euro 1.22 1.17 1.13 RMB 10.15 11.25 11.02 Won 1,828 2,098 1,880 Small FX gains in first half. Current rates indicate broadly neutral average FX for the full year versus 2009

23. The Irwindale, California MillerCoors brewery saves water and energy with an improved condensate recovery system The customerThe Irwindale, California brewery produces seven million barrels of beer annually. The challengeTo reduce water usage and to save energy with a more efficient condensate recovery system. Our solutionSpirax Sarco steam experts surveyed the condensate return system and the operation of key system components. It was determined that condensate recovery could be improved by 75-80% and that energy could be saved by eliminating the condensate dump, replacing failed traps, eliminating improperly applied trap types that often plug and fail closed causing increased water usage, and by refitting automatic pump-traps on the heat exchangers. Results Spirax Sarco completed all the work in one month without disrupting the production schedule. The system changes resulted in significant improvements in packaging capacity and equipment heat-up time and also achieved the goal of 85% condensate recovery with annual savings of 5.4 million gallons of water and 8% projected energy saving.

24. South America’s largest bakery group saves energy and improves plant safety using compact prefabricated heat exchange technology The customerGroup Bimbo now operates in 17 countries producing 7,000 products with 150 prestigious brands. The challengeTo save energy in their bakeries by eliminating large hot water tanks. Our solution Bimbo’s bakery used steam to keep the total volume of hot water stored in large tanks at temperature (at up to 65°C) even when the water was not being used. Spirax Sarco’s engineers recommended the use of modern heat exchange technology in compact EasiHeat units where steam is only used when hot water is required, saving energy, water and reducing gas emissions. Results The bakery is now using less steam, has increased its condensate return, uses less energy and achieves lower emissions. Bimbo has saved US$218k per year in energy costs as a result of this project. The EasiHeat units have freed up space for process use and helped create a safer working environment.

25. Australian Brewery takes control of its amber nectar by improving temperature regulation and reducing energy consumption The customerThe Swan Brewery uses distinctive ingredients to brew a great beer. The challengeTo achieve consistent temperatures throughout the brewing process, to improve brew quality and reduce water, and energy consumption. Our solutionSpirax Sarco’s engineers recommended upgrading the temperature controls of the steam system by supplying new hot water heat exchangers, steam traps and control valves to stabilise the process temperature and deliver consistent brewing ingredients into the brewing process, reduce steam usage and minimise the need for fresh water ‘make-up’ by recycling hot condensate. ResultsSwan gained consistent control of temperatures in their process. Energy usage fell by 6%, water consumption was lowered and maintenance costs were reduced. The customer can now rely on the same great tasting beer every time and employees enjoy a safer working environment.

26. Diagnostic lab increases production capacity and enjoys greater safety and accuracy with Watson-Marlow Pumps automation The customerLab21 provides diagnostic reagents, test kits and culture media to its worldwide customers. The challengeLab21 is growing fast and production processes need to be automated to meet customer demands worldwide for safe diagnostic products. Our solutionTwo Watson-Marlow semi-automatic Flexicon FF series table-top filling machines were recommended to reduce reliance on repetitive manual bottle filling and capping. The machines would improve consistency and health and safety for employees, deliver an increase in production capacity and allow more flexibility in small bottle sizes that may be required. ResultsThe increased automation has given the business greater flexibility in switching between product lines as customer demand dictates and allowed it to increase production capacity. Accuracy of filling has improved to within 0.5% and the Flexicon technology eliminates the possibility of cross-contamination. All this has been achieved without needing a high level of investment or additional space.