Half year results for the six months ended 30 september 2007

HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007
Q2 RESULTS FOR THE THREE MONTHS ENDED 30 SEPTEMBER 2007

Half year highlights

Continuing operations (excluding APV)¹

• Revenue was up 7% at constant exchange rates (CER) at £1,063 million (H1 2006/07: £1,036 million)
• Operating profit² was up 19% at CER at £111 million (H1 2006/07: £98 million)
• Operating margin² increased to 10.4% (H1 2006/07: 9.5%)
• Orders were down 4% at CER to £1,047 million (H1 2006/07: £1,134 million)
• Earnings per share before exceptional finance costs and foreign exchange gains and losses were 7.2p (H1 2006/07: 4.3p)
• Operating cash flow was down 17% at CER to £77 million (H1 2006/07: £94 million)

Total Group³

• Net profit was £56 million (H1 2006/07: £131 million – after crediting £120 million gain on the IBS¹ disposal)
• Free cash flow was £11 million (H1 2006/07: £38 million outflow)
• Net debt was £187 million (31 March 2007: £166 million)

Second quarter highlights

Continuing operations (excluding APV)

• Revenue was up 5% at CER to £543 million (Q2 2006/07: £534 million)
• Operating profit was up 10% at CER to £59 million (Q2 2006/07: £56 million)
• Operating margin increased to 10.9% (Q2 2006/07: 10.5%)
• Earnings per share before exceptional finance costs and foreign exchange gains and losses were 4.4p (Q2 2006/07: 4.7p)
• Operating cash flow was down 34% at CER to £40 million (Q2 2006/07: £61 million)

Total Group

• Net profit was £28 million (Q2 2006/07: £165 million – after crediting £120 million gain on the IBS disposal)
• Free cash flow was £2 million (Q2 2006/07: £60 million outflow)

• Disposal of APV for £250 million announced on 31 October 2007

Contact:

Invensys plc	Steve Devany	tel: +44 (0) 20 7821 3758
	Kate Elliott	tel: +44 (0) 20 7821 2121
Financial Dynamics	Andrew Lorenz	tel: +44 (0) 20 7269 7121
	Richard Mountain

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

“I am pleased to report another encouraging first half performance, with operating profit from continuing operations of £111 million and operating margin improving to 10.4%. Process Systems and Rail Group have continued to make good progress and, despite difficult market conditions, Controls produced another satisfactory operating performance. We have also seen shareholders’ funds become positive for the first time since 2002.

“The sale of APV will strengthen our financial position further and enables us to focus management attention more on our other operations as we seek to become a more sustainable, higher performing and cohesive business. In Process Systems and Rail Group, we have continued to increase investment in sales and marketing, research and development and engineering resources to enable us to capture the growth in many of our markets and continue to deliver efficient project execution. We have also decided to continue the level of investment in operational restructuring when there is a compelling financial return, particularly in Controls.

“Following this encouraging first half performance, the Board remains confident that the Group will continue to make progress in the current financial year.”

Notes

1. Continuing operations are Process Systems, Eurotherm, Rail Group and Controls. Discontinued operations comprise APV in both periods and Invensys Building Systems in the US and Asia Pacific (IBS) in 2006/07.

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

3. Total Group comprises continuing and discontinued operations.

Conference call

1. Ulf Henriksson, CEO, and Steve Hare, CFO, will be hosting a presentation to analysts and fund managers at 9.00 am (GMT) this morning at:

JPMorgan Cazenove Auditorium,
1st Floor,
20 Moorgate,
London EC2R 6DA

2. This presentation will be available via a telephone conference call:

UK: +44-20-3023-4457
US: (Toll-free): +1-866-966-5335

No passcode is required

3. The presentation will be audio webcast live with slides, which can be accessed by following the link at:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=79275&eventID=1674497

A recording will be available at this address shortly after the completion of the call.

4. This announcement, the presentation materials for the conference call and the half-yearly financial report are available on the Invensys.com website at:

http://www.invensys.com/isys/default.asp?top_nav_id=4&nav_id=4

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.