1. Front cover Spirax-Sarco Engineering plc 2008 Half Year Results 30 th June 2008

2. Spirax-Sarco Engineering plc 2008 Half Year Results Mark Vernon - Chief Executive David Meredith - Finance Director 2008 H1 Results

3. Overview of First Half 2008 Continued strong sales growth of 19% (12% at constant currency) Operating profit up 29% (15% at constant currency) Good sales and profit growth from all regions Operating profit margin improved to 17.1% (2007: 15.8%) Interim dividend increase of 20% Good cash flow - significant capital investment in 2008 and 2009 20082007ChangeChange excl XR Revenue£238.7m£200.1m +19%+12% Operating profit*£40.8m£31.6m +29%+15% Margin*17.1%15.8% Pre-tax profit*£42.7m£33.1m +29%+15% EPS*38.0p29.1p+31%+17% DPS10.0p8.3p +20% Overview *Excludes amortisation of acquired intangibles of £0.8m (2007:£0.2m) of which £0.2m relates to Associates (2007: nil)

4. Geographical analysis of revenue North America 18% UK & Republic of Ireland 11% Asia 19% Continental Europe 39% Rest of World: South America, Africa, Australasia 13% Sales are by geographical location of the customer Segments 20082007 UK and ROI11%11% Cont. Europe39%38% N. America18%19% Asia19%20% Rest of world13%12%100%

5. Revenue changes ContinentalNorth UK&ROIEuropeAmericaAsiaROWExchange +£2.6m+£7.3m+£4.3m+£5.1m+£5.7m+£13.6m £m Note : Sales are based on the geographical location of the customer. : Segmental splits are shown at constant exchange rates. +/- % YOYH1 Organic Sales +10% Acquisitions+2% Exchange+7% Total+19% Revenue Change 2008 increase excl XR +/-% UK and ROI+11 Cont. Europe+8 N. America+11 Asia+13 Rest of world+22 Exchange+7 +19 2008 sales (by customer) £m UK and ROI25.1 Cont. Europe93.4 N. America43.0 Asia45.2 Rest of world32.0 238.7

6. +/-% YOYH1 Operating profit+29% Operating margin 200817.1% Operating margin 200715.8% Note: Segmental splits are shown at constant exchange rates. Operating profit changes ContinentalNorth UK&ROIEuropeAmericaAsiaROWExchange +£1.4m*+£1.5m*+£0.9m*+£0.9m*+£0.7m*+£3.8m £m Profit Change 2008 increase excl XR +/-% UK and ROI+21 Cont. Europe+9 N. America+34 Asia+12 Rest of world+25 Exchange+12 +29 *Excludes amortisation of acquired intangibles of £0.8m (2007:£0.2m) of which £0.2m relates to Associates (2007: nil)

7. UK & Republic of Ireland 20082007changechange excl XR Sales to customers£25.1m£22.4m+12%+11% Sales by operation*£64.9m£58.6m +11%+11% Operating profit£8.2m£7.6m +9%+21% Margin*12.7%12.9% Organic sales growth in domestic market 11% Sales focus on energy saving projects for customers and newer products Demand on factories increased from overseas Efficiency gains in the factories offset higher energy and material costs UK & ROI *Sales by operation comprise customer and intra-group sales Margin based on gross sales

8. Spirax help UK hospital cut energy bill by 15% Previously, six calorifiers supplied heating and domestic hot water to areas of the hospital, designed to run on waste heat from the hospitals combined heat and power (CHP) plant. Spirax provided a complete turnkey solution: engineering, packaging and installation. Spirax replaced the six calorifiers with four compact packaged heat exchangers that predominantly run on waste heat to provide hot water for heating. The Spirax heat exchanger packages are more efficient than calorifiers and 25% of the size, are easier to control & maintain, and provide more efficient heat transfer. Hospital calculates savings of 15%, equivalent to over £5,000 a month. Case Study

9. Continental Europe Market conditions were generally positive – economic environment weakening Significant gains from stronger euro Continued good performance overall – sales up 8% at constant exchange Flexicon integration progressing well Europe 20082007changechange excl XR Sales to customers£93.3m£75.7m+23%+8% Sales by operation*£117.5m£93.6m +25%+10% Operating profit£17.9m£12.1m +48%+9% Margin*15.2%12.9% *Sales by operation comprise customer and intra-group sales Margin based on gross sales

10. North America Organic sales up 11% Good sales of traditional products Economic background deteriorating Profit held back by exchange Profit up 34% at constant currency North America 20082007changechange excl XR Sales to customers£43.0m£38.4m+12%+11% Sales by operation*£43.8m£38.8m +13%+12% Operating profit£3.4m£2.8m +22%+34% Margin*7.7%7.2% *Sales by operation comprise customer and intra-group sales Margin based on gross sales

11. Spirax saves $4.7million for USA oil refinery Spirax identified steam losses that resulted in millions of dollars of energy savings. Steam trap audits by Spirax identified five problem areas: - Improperly installed and leaking steam traps - Freezing sulphur - Water hammer problems - Wasted blowdown - Steam turbine inefficiencies Spirax recommended engineering solutions and provided installation services resulting in reduced annual operating costs of nearly $800k in year one. The new steam trap program reduced the failure rate from 6% to nearly 1% over five years. $4.7 million has been saved over the past five years. Case Study

12. Asia Continued overall strong performance Organic sales up 13% Good results in China Generally strong currencies – notably China but exchange disbenefit in Korea Asia 20082007changechange excl XR Sales to customers£45.2m£39.3m+15%+13% Sales by operation*£42.0m£36.2m +16%+14% Operating profit£7.8m£6.7m +17%+12% Margin*18.5%18.4% *Sales by operation comprise customer and intra-group sales Margin based on gross sales

13. Rest of the world Sales up 32% (22% at constant currency) Exchange disbenefit in South Africa but overall favourable exchange movements Organic sales growth in nearly all markets South America results exceptionally good Operating profit well ahead in constant currency Rest of World 20082007changechange excl XR Sales to customers£32.0m£24.3m+32%+22% Sales by operation*£31.7m£24.3m +30%+21% Operating profit£3.5m£2.5m +43%+25% Margin*11.2%10.2% *Sales by operation comprise customer and intra-group sales Margin based on gross sales

14. Financial aspects – Half Year 20082007changeChange constant ccy Revenue £238.7m £200.1m+19%+12% Operating Profit*£40.8m£31.6m+29%+15% Margin17.1%15.8% Net finance income £0.8m £0.9m Associates £1.2m £0.6m Profit before tax* £42.7m £33.1m +29%+15% Tax rate (ex Assoc.)*32.8%34.1% EPS*38.0p29.1p+31%+17% DPS10.0p8.3p+20% Financial Reduced net finance income – Pensions Pre-tax profit up 29% Lower tax rate – profit mix Strong EPS growth +31% Interim dividend +20% *Excludes amortisation of acquired intangibles of £0.8m (2007:£0.2m) of which £0.2m relates to Associates (2007: nil)

15. Cash flow Operating profit40.131.4 Depn & amortisation 8.27.0 Equity settled share plans1.10.8 Working capital changes(9.6)(5.5) Pension payt > P&L charge(0.2)(5.5) Net interest(0.1) (0.6) Taxation paid(10.8)(8.8) Net capital expenditure(8.4) (6.9) Free Cash Flow20.2 11.9 Net dividends(16.2)(14.3) Acquisitions(12.2)(0.7) Shares issued2.31.7 Cash Flow(5.9)(1.4) Good free cash flow Working capital up 1% (constant currency excl acquisitions) Capex increased - China Interest payable reduced – good cash flow Dividends paid up 13% Some Treasury shares reissued for options exercised First HalfFirst Half £m20082007

16. Key statistics First Half 20082007 Net cash/(debt)£12.2m(£7.2)m Capital expend / depreciation118%102% Amortisation acquired intangibles£0.8m£0.2m Sales per employee+7%+10% Free Cash Flow£20.2m£11.9m Operating profit margin17.1%15.8% IAS19 Pension deficit (30th June)£47.0m£2.5m Net cash – good cash flow IAS 19 Pension deficit £47m at June 2008 Higher capex in 2008 and in to 2009

17. Spirax-Sarco Engineering plc Driving growth through excellence and innovation to create shareholder value

18. Appendix I – Currencies First half First half Year 200820072007 Average exchange rates Bank of England sterling index94.4 104.4103.3 US$1.99 1.97 2.00 Euro 1.30 1.48 1.46 Won 1954 1844 1858 Period end exchange rates Bank of England sterling index 93.2 105.0 96.8 US$ 1.99 2.01 1.99 Euro 1.26 1.49 1.36 Won 2082 1854 1863 Appendix I

19. Appendix II – 25 Years of sales performance Sales for 2003 and prior years have been adjusted to IFRS basis Sterling weakening Sterling strengthening Appendix II Full year

20. Appendix III – EPS & DPS performance Note: Figures exclude non-operating and exceptional items From 2004 IFRS figures used excluding amortisation of acquired intangibles Key EPS DPS Appendix III Full year

21. Appendix IV – Growth Opportunities Appendix IV Industry growth Market share gains Market expansion Acquisitions Spirax Sarco Growth Opportunity for market share gains across product range (especially newer products) Expanding selling opportunities into packaged engineered systems and services High cost of energy provides good tailwind Good exposure to Asia (20% sales) and peristaltics provide higher market growth Energy savings Bolt-ons to fill product & geographical gaps, add technology and expand application range