2006/2007 First quarter results for the three months ended 30 June 2006

2006/2007 First quarter results for the three months ended 30 June 2006

Highlights

• Orders from continuing operations¹ were £732 million (Q1 2005/06: £625 million), up 15% at constant exchange rates (CER)
• Revenue from continuing operations was £598 million (Q1 2005/06: £560 million), up 4% at CER
• Operating profit² from continuing operations was £45 million (Q1 2005/06: £29 million), up 47% at CER
• Operating margin² of continuing operations was 7.5% (Q1 2005/06: 5.2%)
• Net loss was £34 million (Q1 2005/06: £26 million), after charging costs of £55 million relating to the 2006 Refinancing⁴
• Free cash inflow before legacy items was £8 million (Q1 2005/06: £22 million outflow)
• Net debt⁵ decreased in the quarter by £27 million to £730 million
• 2006 Refinancing and disposal of IBS completed since the quarter end; pro forma net debt at 30 June 2006 reduces from £730 million to £298 million⁶

Ulf Henriksson, Chief Executive Officer of Invensys plc, commented:

“I am pleased to report that Invensys produced a good performance in the first quarter. We increased operating profit from continuing activities from £29 million to £45 million and produced free cash inflow before legacy items of £8 million compared with an outflow of £22 million in the first quarter of last year. Process Systems and Rail Systems both produced strong performances and Controls and APV showed further evidence that their operational performance is stabilising.

“We have now completed the 2006 Refinancing and I would like to thank our shareholders and lending banks for their overwhelming support. We are now working to capture the operational benefits that this refinancing makes possible.

“Based upon the good performance in the first quarter and the actions we are taking within each of our businesses to improve their performance, the Board remains confident that the Group will make further progress in the current financial year.”





Contact:
Invensys plc

Steve Devany tel: +44 (0) 20 7821 3758
Peter Niklewicz tel: +44 (0) 20 7821 2121

Maitland

Emma Burdett/Michelle Jeffery tel: +44 (0) 20 7379 5151


Notes

1. Continuing operations are Controls, Process Systems, Rail Systems, APV and Eurotherm.

2. All references to operating profit (OPBIT) and operating margin in this announcement are before exceptional items.

3. Discontinued operations in 2006/07 comprise Invensys Building Systems operations in the US and Asia Pacific (IBS) and, in addition, ABS EMEA, Lambda and Baker in 2005/06.

4. Definitions used in the Prospectus dated 25 May 2006 shall have the same meanings when used in this announcement, unless the context requires otherwise.

5. Total Group net debt; this includes £5 million of borrowings classified as “held for sale” in the consolidated balance sheet.

6. The calculation of pro forma net debt at 30 June 2006 is shown in note 13 to the financial information.

Conference call

1. Ulf Henriksson, CEO, will be hosting a conference call for analysts and fund managers at 8.00 a.m. this morning:

UK: +44 (0) 20 7138 0821
US: +1 718 354 1361
No passcode is required

2. The conference call will be audio webcast live with slides at the following address:

http://www.invensys-investor.com/isys/results_presentations/rdc/

A recording of the conference call will be webcast with audio and slides from 11.00 a.m. today at the same address.

Safe harbor

This announcement contains certain statements that are forward-looking. These statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Forward-looking statements are not guarantees of future performance. The Group's actual results of operations, financial condition and liquidity, and the development of the industries in which the Group operates, may differ materially from those made in or suggested by these statements and a number of factors could cause the results and developments to differ materially from those expressed or implied by these forward-looking statements.