1. Presentation
Year ended 30 November 2013
Chief Executive
Finance Director
1

2. Summary
Consistent strategy delivering results
Consistent strategy
Niche positions
in growing, regulated markets
Long-term focus on
new product
development
and intellectual property
2007- 2013
11% CAGR
in revenue
£48m (£8m p.a. avg) 39% operating
return on
cash from operations
capital employed
In the year ended 30 November 2013
10%
revenue growth to £84.3m
26% EPS
growth to 12.7p
115% reduction
in net debt. Net cash of £0.6m
2

3. Specialist filtration
and environmental technology
Specialist filters are used to protect costly or complex downstream systems
Attractive business characteristics
Annuity demand:
Robust demand drivers:
Barriers to entry:
• Consumables: 80%+
• Secular trends
• Patent protection
• Long life cycles
• Regulation/legislation
• Quality accreditation
• Bespoke
• Process reliability
• Design rights
3

4. Consistent strategic
and operational objectives
Long-term growth from developing specialist filtration and environmental technology
businesses both organically and by acquisition
1
A focus on
regulated markets
with long-term
growth prospects
•
Four key markets
2
Concerted new
product
development
•
Now core to
revenue growth
3
Geographic
expansion to
support key
markets
4
Generate cash to
invest in:
•
Organic growth
•
Acquisitions
•
Dividends
11% revenue CAGR since 2007
Plenty of opportunity ahead
4

5. 1 2 3 4
A focus on regulated markets
with long-term growth prospects
Markets
Regulation
Market Growth
Aviation
FAA, CAA, EASA
and other specific accreditations
5.0%
Growth in pax revenue
miles 2012 - 2032
Energy and
industrial
process
International nuclear standards:
NQA1, ASME, etc
11.5%
Growth in gasification
2011 - 2016
Environmental
laboratory
supplies
Approved methods:
EPA, SEPA, EU water directives
5.6%
Molten
metals
ISO and customer
accreditations; extensive
qualification requirements
p.a.
p.a.
p.a.
6.5%
p.a.
(Source: Boeing 2013)
(Source: US DOE 2010)
Growth in water
analysis consumables
2011 - 2016
(Source: SDI Research 2012)
Growth in primary
aluminium usage 2010
to 2020
(source: Alcoa 2013)
5

6. 1 2 3 4
Main markets
and operating companies
Microfiltration
Approx share
of Group sales
Aviation
Main operating companies
Principal markets
15%
Energy and
industrial process
Business division
30%
Environmental
laboratory supplies
20%
Molten metals
35%
Porvair Filtration Group
Seal Analytical
Porvair Sciences
Metals Filtration
SELEE Corp
6

7. 1 2 3 4
Strong market positions
and concerted new product development
Aviation
Niche positions
Growth drivers
Recent new products
Competitive advantage
•
Fuel tank inerting
•
Aircraft build rates
•
•
Installed base
•
Coolant systems
•
•
•
Hydraulics
•
Fuel lines
•
Maintenance
schedules
New programmes
Design engineering
skills and track
record
•
Retrofit: inerting
Boeing, Airbus
and other fuel
tank inerting filters
A380 and 787
coolant filters
•
A350 underway
•
Range of media
•
Airbus NEO
qualification
•
Design protection
•
7

8. 1 2 3 4
Strong market positions
and concerted new product development
Energy and industrial process
Niche positions
Growth drivers
Recent new products
Competitive advantage
•
Pulse jet systems
•
•
E-gas™: Posco
•
Installed base
•
•
Maintenance
schedules
•
E-gas™: Reliance
•
Range of media
•
Hot gas and
gasification
Nuclear remediation
Gasification build
rates
•
•
Polymer production
Nuclear clean-up
Design engineering:
pulse jet systems
•
•
E-gas™: SG
Solutions
•
Energy efficiency
and security
•
UK Government
remediation
•
Design protection
•
Bechtel nuclear
8

9. 1 2 3 4
Strong market positions
and concerted new product development
Environmental laboratory supplies
Niche positions
Growth drivers
Recent new products
Competitive advantage
•
Analysis of inorganic
chemicals in water
•
Regulated water
testing
•
Quaatro 39
•
Installed base
•
Associated
consumables
•
Higher environmental
standards
•
•
•
Porous plastics
•
Developing markets
•
AA1 method
development
AQ2 upgrade
•
Bioscience growth
•
Bioscience filters
Instrument design
protection
Porous plastics IP
and related patents
•
Chromatrap™
•
9

10. 1 2 3 4
Strong market positions
and concerted new product development
Molten metals
Niche positions
Growth drivers
Recent new products
Competitive advantage
•
Aluminium cast
house filtration
•
Aluminium
consumption
•
Selee CSX™
•
Patent protection
•
Gray and ductile
iron filtration
•
US auto and light
truck production
•
Selee IC™
•
•
Selee SA™
•
Super alloys
•
Increased use of
high grade and
exotic alloys
•
Range extensions
Metallurgical
expertise
US manufacture (for
the Americas)
•
10

11. 1 2 3 4
Geographic expansion to key markets:
Recent developments
Seal US
expansion and
Thomas Cain
acquisition
Metals
Filtration
principal
plant
Acquired
Chand
Eisenmann
Metallurgical
PFG US
capacity
expansion
Microfiltration
principal plants
- Aerospace
capacity
expansion
- bioscience
dedicated facility
Seal
production
facility
Strengthened
European
sales force
Xiaogan
facility
opened
Opened
Russian and
Middle Eastern
tech support
office
Seal Shanghai
tech centre
recruitment
Microfiltration
Metals Filtration
11

12. 1 2 3 4
Geographic expansion to key markets:
2013 revenue by destination
UK
21%
Americas
46%
Europe
13%
Asia
18%
Microfiltration
Metals Filtration
12

13. 1 2 3 4
Consistent strategy:
revenue growth and margin improvement
11% revenue CAGR since 2007
14
12
Half year
10
Final
£ millions
Pence per share
EPS growth trend established
8
6
4
2
0
2009
2010
2011
2012
2013
£ millions
Revenue growth coming from US and Asia
90
80
70
60
50
40
30
20
10
0
Asia
Americas
Europe
United
Kingdom
2013
Final
2008
2009
2010
2011
2012
2013
Net debt eliminated
Others
2007
Half year
2007
£ millions
2008
90
80
70
60
50
40
30
20
10
0
16
14
12
10
8
6
4
2
0
-2
Half year
Final
2009
2010
2011
2012
2013
13

14. Record performance
for the year ended 30 November 2013
Revenue up
10%
to £84.3m
PBT up
25%
to £7.8m
Revenue up
15%
in Microfiltration
EPS up
26%
to 12.7p
Revenue up
2%
in Metals Filtration
Net debt down
115%
net cash of £0.6m
14

15. Income statement
year ended 30 November 2013
2013
£000
Revenue
2012
£000
84,267
76,455
Operating profit
8,641
7,205
Interest
(793)
(906)
Profit before tax
7,848
6,299
(2,367)
(2,017)
Profit after tax
5,481
4,282
EPS (basic)
12.7p
10.1p
Tax
15

16. Cash flow
year ended 30 November 2013
2013
£000
2012
£000
11,149
1,116
9,446
(283)
(417)
(518)
Tax
(2,104)
(1,238)
Capital expenditure (net of disposals)
(1,543)
(1,928)
8,201
5,479
Acquisitions
(3,324)
(3,329)
Proceeds from issue of shares
Dividends paid
Exchange movements
659
(1,175)
88
Net debt at 1 December
(3,870)
41
(1,023)
53
(5,091)
579
(3,870)
Operating cash flow before working capital movements
Working capital movement
Interest
Net cash from operations
Net cash / (debt) at 30 November
16

17. Metals Filtration
results and progress – year ended 30 November 2013
2013
£000
Revenue
Operating profit
2012
£000
28.5
28.0
2.4
2.4
Revenue 2% higher, operating margins maintained
• Stronger second half
• Margin and market share gains from patented products
• Xiaogan plant opened
New product development
• Promising development pipeline
• New high grade lithium aluminium alloy filter in trials
• Entirely new design of filter in development
2014 outlook
• Positive start to 2014
• Capacity investments in US and China
17

18. Microfiltration
results and progress – year ended 30 November 2013
2013
£000
Revenue
Operating profit
2012
£000
55.8
48.5
8.6
6.7
Revenue up 15%, operating profit up 29%
• Record revenue and profits
• Seal Analytical up 13%
• Two US based acquisitions completed
Strategic progress
• Large contracts progressing well
• Good progress in aviation, nuclear
• Bioscience: licencing agreement
2014 outlook
• Healthy order books going into 2014
• Investment to add capacity:
• UK
• USA
18

19. 2014 – 2016 opportunities
market growth, market share gains and margin growth
Aviation
Energy and
industrial
process
Laboratory
supplies
Market growth
Regulated markets with long term growth prospects – long product lifecycles
Market
share gains
• Inerting still growing
Molten
metals
• Large contracts in
place
• Thomas Cain crossselling & integration
• Steady market share
gains from IP
protected ranges
• Pipeline promising
• Bioscience licensing
growth with Thermo
• Chand Eisenmann
capacity increase &
cross-selling
• Product range
extensions
• Bioscience filtration
development
• Initial orders for next
generation of new
products
• US expansion
• US sales and
manufacturing
• Improved analyser
range designs
• New China plant built
• UK capacity
increases
• Longer life hot
gas filters
• US manufacture of
two product ranges
• Incremental product
and process
improvements
• Airbus A380 and
Boeing 787 coolant
underway
• A350 underway
• Airbus NEO in
qualification
Margin
growth
19

20. Summary
and outlook
Results
Investment
10%
2014 year of
revenue growth to
£84.3m
investment
26%
in UK and US
planned
EPS growth to 12.7p
Net debt
eliminated
New plants
Other capacity
upgrades in
Large
contracts
One-off
revenue
boost in 2014
Profits spread
over four years
Outlook
new
product pipeline
Promising
Positive start
to 2014
UK, US and China
The underlying business should continue to grow
20

21. Presentation
Year ended 30 November 2013
Chief Executive
Finance Director
21