Specialty EngineeringSlough, Tuesday 25 April 2006

Presentation by: John Langston, Group MD, Specialty Engineering

www.smiths-specialtyengineering.com

2

Specialty Engineering Sales Distribution

Spec Eng: £929m

Sales at 31 July 2005

John CraneInterconnect

Flex Tek

Marine

Specialty Engineering

3

Vision for Specialty Engineering

• Technology based groups/scaleable organisation

• Medical expansion

• Acquisitions

• Capitalise on increased growth profile

• Acquire adjacent businesses and leverage global distribution strength

• Sell peripheral non- core businesses

• Gastite – grow

• Aerospace/Industrial – restructure and harvest

• Harvest

Deliver Full Potential for each of our four businesses

Interconnect

John Crane

Flex-Tek

Marine

Specialty Engineering

4

2006 Acquired Lorch Microwave

2005 Acquired Millitech Inc

2005 Acquired US Seals

2004 Acquired John Crane Timing

2004 Acquired TRAK TECOM Industries

2004 Divested Icore International

2003 Divested Polymer

2003 Specialty Engineering Formed

2002 Divested John Crane LIPS

2002 Divested Air Movement Group

2002 Established Chinese WOFE 

2001 Acquired Summitek Instruments

2000 Acquired LEA International, EMC Technology, RF Florida Labs and Radio Waves

Established Costa Rica lower-cost manufacturing facility

2000 Industrial + Sealing Solutions

Evolution of Specialty Engineering

2000

2004

2001

2002

2003

2005

2006

20052001 2002 2003 2004 20062000

Return on SalesReturn on Sales

11%11%

15%15%

Specialty Engineering

sales

Interconnect

www.smithsinterconnect.com

Interconnect is a global electronic components and sub-systems manufacturer providing signal, power and microwave capability to the military & aerospace, wireless infrastructure and other industries.

Our products are application specific and incorporate innovative technologies to achieve ultimate system performance.

6

Interconnect - Overview

Application Specific Devices• High Growth• High Margin• Long Life Programs

Standard Electronic Devices• Lower Growth• Lower Margin• High Cap Ex

$91bn

$9bn$9bn

Interconnect Addressable Market

£m

0

50

100

150

200

250

300

FY0001 FY0102 FY0203 FY0304 FY0405 FY0506E

Sales Trend

Interconnect

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Interconnect - Market Landscape

US

EU

Asia

L. America

Sales by Region

Defence

Telecom

Medical

Rail

Industrial

Others

Civil Aero

Sales by Market

Main Competitors

• L3• Cobham• Amphenol• ITT Cannon• Herley

Main Customers

Interconnect

Flex Tek

www.wereflexible.com

Flex Tek provides hose and ducting for commercial and residential air movement and hoses for aerospace, industrial applications and automotive

9

Flex Tek - Market Landscape

US

EU

Asia

Home Appl.

Industrial

Building mat.

Other

Aerospace

Sales by MarketSales by Region

Sales by business areaTubular

Plastic Products - Duravent

Heat Technology

Flex Tek

10

Marine

Kelvin Hughes Limited is a world leader in the design and manufacture of marine navigation systems for the commercial and defence markets and the world’s largest supplier of paper and digital nautical charts

US

Europe

UK

Sales by Region 08/09 Sales by Market 08/09

Commercial Shipping (Electronics)

Commercial Marine Data Systems

Leisure Marine

Defence

Market Drivers

• Commercial - legislation• Competitors: Furuno, JRC, Sperry, Raytheon and SAM• Naval - Funding• Marine Data Systems - Service, Price

Marine

Specialty Engineering

www.smiths-specialtyengineering.com