Smiths Group Keith Butler-Wheelhouse Chief Executive Speaking at

Smiths Group Keith Butler-Wheelhouse, Chief Executive Speaking at The Lehman Brothers 2005 Industrial Select Conference Lehman 05/01 www. smiths-group. com/ir Miami Beach, Tuesday, February 1 st, 2005 Register here to receive regular information 1

Smiths Group: Four strongly-performing divisions Aerospace Smiths Aerospace Systems and equipment for military and commercial aircraft Detection Smiths Detection Equipment for protection against threats to security Medical Smiths Medical Devices for critical care and medication delivery Specialty Engineering Application-specific electronic and engineered products Smiths current annual sales (approx) $5. 6 billion, EBIT margin (approx) 15% Divisional sales Includes Medex $2. 0 billion $1. 7 billion $0. 7 billion Divisional margins 12% Lehman 05/01 18% $1. 2 billion (pro-forma) 20% 14% 2

Significant progress on reshaping Smiths Group ACQUISITIONS $95 m Aerospace Medical Interconnect (financial years ending July 31 st) 2002 Net debt $1. 6 billion $900 m $380 m $340 m Marine Seals DISPOSALS Aerospace Detection Medical Interconnect $380 m Heimann (Detection) Medex $110 m Aerospace 2003 2004 $200 m 2005 Net debt $0. 5 billion Industrial businesses $870 m Polymer Seals Management action: Acquisition currency: § Disposal of non-core business § Focusing on activities with best growth prospects § Adding relevant acquisitions to existing operations 1 Strong free cash-flow 2 Disposal proceeds Lehman 05/01 3

The profit profile of Smiths has changed: now focused on sectors with strong growth Medical Aerospace Cyclical markets for commercial, strong momentum business in defense Relentless increase in healthcare spending drives continuous growth in devices market Upswing in commercial is driving Smiths’ profit recovery With Medex, Medical is now a larger part of Smiths Specialty Engineering Detection In niche markets with growth rates of 5% and above Exciting market still evolving, new technology is the driver Smiths expects to achieve double digit growth Lehman 05/01 divisional contribution to operating profit (pro-forma) Interconnect is outperforming, with defense and telecoms components growing strongly 4

The financial resources are available for the continued development of Smiths LIQUIDITY 01 02 03 04 Pro-forma incl Medex 27% 18% 19% 8% 20% 7 x 9 x 14 x 28 x 15 x 48. 4 p 45. 5 p 26. 0 p 27. 0 p Debt/equity ratio (market value of debt & equity at July 31) Interest cover (interest/EBITDA) 56. 5 p CASH-GENERATION Free cash-flow per share (after capex) 37. 1 p (before M&A, dividends) Dividend per share (34 years of successive increase) 25. 0 p 25. 5 p Good cash performance supports an attractive dividend, plus liquidity for acquisitions Lehman 05/01 5

Smiths Aerospace: overview First tier supplier of integrated systems Electronic systems Mechanical systems Engine components With technology leadership in vital areas of the aircraft R&D/Sales Company-funded (expensed to profit) Customer-funded (largely govt. /military) Lehman 05/01 8% Common Core Computing on B 7 E 7 12% 6

Smiths Aerospace: A strong presence in the Industry Supplying the major aircraft prime manufacturers Commercial Boeing, Airbus Defense Boeing, Lockheed Northrop, Raytheon generating a valuable aftermarket OE Engine makers GE/RR/P&W Aftermarket: Airlines Military On all the key aircraft programs Commercial 737, 777, 320, 330/340 Ahead 7 E 7, 380 Defense F-18 E/F, Apache, C-17 Ahead JSF, C-130 AMP 767 Tanker (exports) Lehman 05/01 7

Current market dynamics are positive for Smiths Aerospace Commercial § Rapid market recovery now underway § Driven by increased production of narrowbodies § Aftermarket responding to RPK growth trend § Smiths FY 2005: already seeing the benefit § Medium term: strong sales growth and margin gains Defense § Current spending on defense continues at a high level § Smiths has a very broad spread of applications § Recent program wins assure long-term growth § Cuts in new-build would result in upgrade opportunities on current aircraft Lehman 05/01 8

Smiths Detection: rapidly expanding, and making a significant contribution to Smiths’ growth Market leadership in trace and X-ray detection (one of only two companies with both technologies) Worldwide sales footprint: 50/50 US/Ro. W Technology leadership R&D/Sales: company-funded (expensed to profit) 7% Extensive customer base reflects wider risks to security; not dependent only on airports Lehman 05/01 9

A broad spread of applications is bringing more predictable growth to Smiths Detection Military Airports Non-security applications Ports & borders Current sales Critical infrastructure Lehman 05/01 First responders 10

The market for Detection is still evolving rapidly Progressively tightening security standards create opportunities Latest products are generating incremental sales Innovative technologies are being acquired The aftermarket is becoming significant Longer-term, sensors will be integrated into systems Double-digit organic growth in 05, plus acquisitions Lehman 05/01 11

Smiths Medical: following the acquisition of Medex, this division will hold a prominent position in specialised healthcare devices 1. High margin business in a market with consistent growth 2. Devices for critical care and for ex-hospital recovery 3. In specialised niches mostly with #1 or #2 market positions 4. Long-term supply agreements with US health providers Smiths Medical sales growth outperformed world markets over the last 5 years 8% CAGR 5%pa Smiths Medical sales in $ world market for medical devices 5. Worldwide distribution network, strong in Europe, Japan 6. Productivity gains from transfer to low-cost countries 7. Innovative products are bringing competitive advantage 8. Sales split: 50/50, Ro. W/US Lehman 05/01 12

Smiths Medical: two strong product ranges to meet the needs of healthcare specialists Anaesthesia & Safety devices § Airway management high volume, single-use § Pain management high volume, single-use § Temperature management equipment & disposables § Patient monitoring equipment & disposables § Safety devices high volume, single-use § Infusion therapy equipment & disposables Safety devices: rapid market growth following legislation to prevent injury from ‘sharps’ 3 (billion) 2 65% With safety devices units 2000 Lehman 05/01 Infusion therapy: now includes the Cozmonitor insulin delivery pump, a fast-growing product line Now Total US market for hypodermics 1 Medication delivery & Patient monitoring 2005 of total hypodermic market 1. 0 (million) Pumps now 30% Type 1 diabetics in US 0. 5 Using pumps units 2000 of total Type 1 market 2005 13

The $925 m acquisition of Medex puts Smiths Medical in the ‘Big League’ The combined range meets 95% of the requirement for safety devices Other Hypodermic syringes Medex range Smiths range Winged collection etc. Intravenous catheters Geographic opportunity Smiths Sales in the US Anaesthesiologists Critical care Infection control With a full range to offer, the combined sales team has the opportunity to increase market share Synergy benefits Medex The customer callpoints for Smiths and Medex are the same The Medex products will benefit from the Smiths international sales network Initially from coordinating sales, marketing and administration, then from rationalisation of production across the enlarged Smiths Medical Sales outside US Smiths now have a significant presence in the safety device sector Lehman 05/01 14

Specialty Engineering: A significant contributor to Smiths’ profits. Businesses with good margins and respectable growth rates Flex. Tek Interconnect Hoses, ducting for domestic appliances, aircon Connection & protection of electronic circuits, currently achieving double digit growth from aero and telecom upswing John Crane Marine radar & navigation charts Annual sales circa $1. 7 billion World’s No 1 supplier of rotating seals, used in oil/gas/chemical plant and pipelines margin 14% Specialty Engineering delivers 100% of its profits in cash Lehman 05/01 15

In summary, Smiths Group is in good shape, with a positive outlook across the company All four divisions currently achieving strong organic growth Medex acquisition lifts Smiths into ‘Big League’ in medical devices Commercial aircraft upswing improves Aerospace margin Detection well-placed in fast-developing homeland security sector Strong cash-flow continues to fund acquisitions and generous dividends Lehman 05/01 16

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