- Spirax-Sarco Engineering reported record results for 2010, with sales up 14% and operating profit up 32% over 2009. - The company achieved a record operating profit margin of over 20% due to growth in emerging markets, efficiency gains, and continued investment in R&D and sales development. - Cash flow remained strong and the company had a net cash balance of £34 million at year-end, allowing it to increase dividends by 19% and pay a special dividend.

1. 2010 Results 31 st December 2010 Bill Whiteley – Chairman Mark Vernon – Chief Executive David Meredith – Finance Director

3. Segment revenue changes £m Based on sales by segment at constant currency % Chg yoy over 2009 Organic Sales +9% Acquisitions +2% FX +2% TOTAL +14% Increase over 2009 EMEA Asia Pac Americas WM FX Total Sales 2010 EMEA Asia Pac Americas WM Total Asia Watson- EMEA Pacific Americas Marlow FX +3% +16% +15% +22% +2% +14% £m 230.0 131.5 125.2 103.0 589.7 +3% +16% +15% +22% +2% £7.4m £18.6m £15.9m £18.8m £10.4m

4. Segment operating profit changes Increase over 2009 EMEA Asia Pac Americas WM FX Total Profit 2010 EMEA Asia Pac Americas WM Corp Exp Total % Chg yoy over 2009 Operating profit +32.5% Op margin 2010 20.2% Op margin 2009 17.3% Based on adjusted profit by segment at constant currency £m +5% +27% +67% +36% +5% +32% £m 36.8 34.2 24.3 30.8 -7.0 119.1 Asia Watson- EMEA Pacific Americas Marlow FX Mexico MasoSine +5% +5% +36% +67% +27% £1.7m £7.2m £9.8m £8.2m £4.4m

8. Underlying operating margin factors (Year-on-year effects on margin) 2010 2011E Currency movements Volume leverage Sales pricing (above inflation) Material prices Manufacturing strategies Product mix Business development investment

19. Appendix I - Investing for long term delivers results *Based on adjusted Operating Profit. From 2004 figures prepared under IFRS Pence per s hare 43 year dividend record Key : EPS Special dividend DPS Final DPS Interim

20. Appendix II - Return on capital employed * See Appendix VII for definition of profit measures £’m 2010 2009 Capital employed Property, plant & equipment 155.6 135.4 Inventories 96.1 86.5 Trade receivables 137.3 118.8 Prepayments, other current assets 16.9 14.6 Trade, other payables & current tax (107.2) (87.5) Total Capital Employed 298.7 267.8 Average Capital Employed 283.3 269.8 Adjusted Operating Profit* 119.1 89.9 ROCE* 42.1% 33.3%

21. Appendix III - Cash conversion Good cash conversion * See Appendix VII for definition of profit measures £’m 2010 2009 Adjusted cash generated from operations 125.6 117.9 Net capital expenditure (property, plant, equipment, software and development) (32.9) (34.6) 92.7 83.3 Adjusted Operating Profit* 119.1 89.9 Cash conversion 78% 93%

22. Appendix IV - Currencies Small FX gains in 2010. Current rates indicate broadly neutral average FX for 2011 2010 2009 % Average exchange rates Bank of England sterling index 80.2 79.6 -1% US$ 1.55 1.56 +1% Euro 1.17 1.12 -4% RMB 10.48 10.65 +2% Won 1,798 1,976 +10% Period end exchange rates Bank of England sterling index 79.8 80.5 +1% US$ 1.57 1.61 +3% Euro 1.17 1.13 -3% RMB 10.32 11.02 +7% Won 1,777 1,880 +6%

23. Appendix V - Improving trend in operating margin Key H1 H2 *Based on adjusted Operating profit Consecutive yearly margin improvement since 2001 with higher H2 margins from seasonally higher sales volumes

24. Appendix VI - 2010 Note on profit measures All profit measures exclude the exceptional revaluation gain in Mexico of £8.2m (2009: nil) and the amortisation and impairment of acquisition-related intangible assets of £6.1m (2009: £2.4m) of which £0.4m (2009: £0.4m) relates to Associates. 2010 excludes professional costs of £0.2m in relation to acquisitions and 2009 excluded headcount reduction costs of £11.4m. The tax effect on these items was £0.4m (2009: £4.1m)