Halma - New Reporting Sectors

HALMA plc

NEW REPORTING SECTORS

14 February 2013

Halma, the leading safety, health and environmental technology group, today announces a change to its Business Sector reporting.

Halma's products "protect life" and "improve the quality of life" in safety, health and environmental markets.  Since 2005, we have reported our business under three sectors including two focused on Safety (Industrial Safety and Infrastructure Sensors) and one on Health and the Environment (Health & Analysis).  All our businesses operate in markets with one or more of our long-term growth drivers: increasing Health & Safety regulation, increasing demand for healthcare and the increasing need for life- critical resources (such as energy and water).

Significant M&A activity in recent years has resulted in the Health & Analysis sector growing from ~30% of Group profit in 2005 to ~50% today.  In future, the current Health & Analysis sector will be reported under two new sectors namely Medical and Environmental & Analysis.  The creation of a separate Medical sector reflects our growing presence in the medical devices market, in particular in ophthalmology and blood pressure monitoring.

The two safety-related sectors, Industrial Safety and Infrastructure Sensors, will be re-named Process Safety and Infrastructure Safety respectively.   

The new reporting sectors are intended to provide greater insight into the products, markets and market growth drivers which are supporting our strong performance and future prospects. 

A summary of these changes together with their continued alignment with Halma's long-term market growth drivers is shown below.

These new sectors include subsidiaries with similar end-markets which will continue to help Halma further develop market-driven strategies through collaboration.  The fundamental Group philosophy of giving subsidiaries autonomy and resources to grow independently remains in place.

Group earnings are unaffected by this restatement.  No management changes are directly related to this change.  Halma's full year results for the 52-week period to 30 March 2013 will be reported under the new sectors on 13 June 2013.

Appendix A gives a financial analysis restating Halma's last two full years' and last two half years' revenues and profits before taxation under the new sector headings.  All of these schedules are unaudited although the two full years' results are based on audited accounts (under the old sector headings) which received unqualified audit reports.

Appendix B gives an outline of the alignment of sectors with Halma's major growth drivers and end-markets.

Halma today hosts a Capital Markets event for analysts and investors.  A summary of the presentation is available on www.halma.com.

A copy of this announcement, together with other information about Halma, may be viewed on its website: www.halma.com.

NOTE TO EDITORS

APPENDIX A

Financial Analysis and Reconciliation by Sector

New reporting sectors:

* Adjustments include the amortisation of acquired intangible assets, acquisition transaction costs, adjustments to contingent purchase consideration (including any arising from foreign exchange revaluation) and profit on disposal of continuing operations, which are analysed as follows:

Reconciliation of old to new sectors:

The former Health & Analysis sector's results comprise the combined results of the Medical and Environmental & Analysis sectors.  Process Safety (formerly Industrial Safety) and Infrastructure Safety (formerly Infrastructure Sensors) sectors' results are unchanged.  Therefore, reconciliations to only the Health & Analysis sector's results are shown below.

* Adjustments include the amortisation of acquired intangible assets, acquisition transaction costs, adjustments to contingent purchase consideration (including any arising from foreign exchange revaluation) and profit on disposal of continuing operations.

APPENDIX B

Growth drivers and major end-markets by sector