Hill-Rom Third Quarter 2017 Earnings Presentation

Third Quarter 2017 Financial Results
July 28, 2017

Forward Looking Statements
This presentation contains forward-looking statements, within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements included herein that are not historical
facts are forward-looking statements, including without limitation statements regarding Hill-
Roms ability to drive sustainable profitable growth and shareholder value, the timing and
success of new product launches, portfolio expansion, and diversified revenue streams, the
ability to achieve the anticipated benefits of the Mortara acquisition, the achievement of long-
range financial objectives, the continuation of stable customer demand trends, a stable U.S.
capital environment, the timing and success of optimizing our product portfolio, our ability to
reduce debt, and all other statements concerning future strategy, plans, objectives, projections,
expectations and intentions. Such forward-looking statements involve a number of risks and
uncertainties and are subject to change at any time. In the event such risks or uncertainties
materialize, Hill-Roms results could be materially adversely affected. For a more in depth
discussion of factors that could cause actual results to differ from those contained in forward-
looking statements, see the discussions under the heading Risk Factors in the company's
previously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on
Form 10-Q. Hill-Rom assumes no obligation to update or revise any forward-looking
statements.
Page 2
2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Table Of Contents
Page 3

Q3 2017 Highlights
Hill-Rom: Trusted Medical Technology Innovator
Leadership Innovation Value

$2.7B global medical Leveraging global scale and Transforming to drive
technology leader with brand equity while sustainable profitable growth
market-leading positions enhancing outcomes and shareholder value
2016 Revenue By Business Increased Investment in R&D Key Valuation Metrics

US$ Billions US$ Millions As of 6/30/2017
5.0% of
revenue $5.2B Market Capitalization
4.6% of $134
Surgical revenue
Solutions 4.3% of
revenue
$7.4B Enterprise Value
$92
$2.7B Patient $72
Front Line +3% cc* Support LTM 6/30/2017
Care Systems +59% Total Shareholder Return
YTD 6/30/2017
2014 2015 2016 $65M Returned to Shareholders**
*Pro-forma growth including Welch Allyn in both 2015 and 2016 Note: Hill-Rom fiscal year end is September 30 **Includes dividends and share repurchases
Page 5

Q3 2017 Highlights
Leveraging strong brands and geographic footprint across diversified portfolio
Improving commercial momentum and operational execution with core revenue growth of 4%*
Establishing a diversified business to drive sustainable growth and profitability
Innovating to enhance outcomes for patients and their caregivers

Launching MonarchTM Airway Clearance System, Bard Parker SafeSwitch disposables, and the
Welch Allyn Blood Pressure Monitor on Amazon
Capitalizing on recent introductions with Integrated Table Motion, RetinaVueTM network, Connex
Spot Monitor, SpotTM Vision Screener, Welch Allyn Home Hypertension Program and others
Transforming the portfolio with disciplined M&A and business development

Expanding existing capabilities in diagnostic cardiology through Mortara Instrument integration
Optimizing product portfolio through announced divestiture of Vlker
Enhancing shareholder value with disciplined financial management

Delivering solid revenue growth, expanding margins and meeting the high end of guidance with
adjusted EPS of $0.91 per diluted share reflecting 12% growth
Updating full-year revenue and adjusted EPS guidance to $3.80 to $3.84 per diluted share
Creating shareholder value by executing our strategy

*Core revenue growth is constant currency, and excludes Mortara and the revenue impact from completed and announced divestitures (with FY2016 annual revenue of ~$75 million).
Page 6

Transforming Our Portfolio
With Diversified Revenue Stream
YTD Q3 2017 Revenue By Product Line YTD Q3 2017 Revenue By Type
US$ Billions US$ Billions
Surgical Service &

Solutions Rental Other Capital
<25%
$2.0B Specialty Beds MedSurg

$2.0B
+4% cc Beds +4% cc
<10%
Front Line Care
MedSurg Non-Capital
Beds 65% +
CWS &
Patient
Other Handling
PSS
Patient Support Systems (PSS)
Benefiting from portfolio optimization and diversification efforts
Page 7

Establishing A Stable, Diversified Portfolio
Q3 2017 Growth By Business YTD Q3 2017 Revenue Profile
Growth at constant currency US$ Billions
Core* $2.0B
Growth Growth
OUS
Patient Support Systems $1.4B
<20% of
Capital total
Front Line Care revenue
U.S.
Non-
Surgical Solutions
Capital
Total Hill-Rom
Global U.S.
U.S. capital accounts for <20% of Hill-Roms revenue

Page 8

Advancing Patient Care With Innovative Solutions
Increased R&D Investment Capitalizing On New Product Launches
US$ Millions Connex Spot Monitor
5.0% of SpotTM Vision Screener
revenue RetinaVueTM Network
VisiVestTM System
4.6% of $134 Integrated Table Motion
revenue CompellaTM Bariatric Frame
4.3% of
revenue EnvellaTM Air Fluidized Therapy Bed
$92
Welch Allyn Home Hypertension Program
$72 MonarchTM Airway Clearance System
TruSystemTM 3000 Mobile Operating Table
Hill-Rom 900 AccellaTM bed system
WatchCareTM Incontinence Management
CentrellaTM Med-Surg Bed System
2014 2015 2016
Clinical Focus Areas
Patient
Advancing Wound Care & Surgical Safety & Respiratory
Diagnostics &
Mobility Prevention Efficiency Health
Monitoring
Page 9 Launched
Well-Positioned To Deliver
On Long-Range Financial Objectives
20151 2016 2015-20183
Key Metric Results Results Long-Range Plan
Revenue $2B $2.7B CAGR 3% - 5%
Adjusted GM %* 45.3% 48.1% +350-450 bps
Adj. Operating
11.8% 15.3% +450-550 bps
Margin %*
Adjusted EPS* $2.64 $3.38 Mid-to-high teens CAGR
Operating Cash $1B+ cumulative

$214M $281M2
Flow (FY 16-18)
Leverage 4.5x 3.9x ~3.2x4
* Refer to the appendix for reconciliations of GAAP to adjusted metrics

1 Includes Welch Allyn financial results since September 8, 2015 transaction completion, including interest associated with new borrowings, but excludes one-time costs associated with the transaction and the impact of a non-
cash stock compensation charge. Operating cash flow includes one time Welch Allyn related transaction costs of $21M.
2 2016 Operating Cash Flow includes $30M funding to U.S. pension plan and $4M incurred to refinance credit facility. Adjusting for these outflows, Operating Cash Flow was $315M.
3 Revenue CAGR relative to full-year 2015 pro-forma revenue of ~$2.6B. All other metrics are relative to 2015 results, which includes contribution from Welch Allyn only during the period since the transaction completion.
4 Includes the acquisition of Mortara Instrument and assumes no further M&A activity.
Enhancing shareholder value through sustainable growth
Page 10

Hill-Rom: A Compelling Investment Opportunity
1 We are successfully transforming to drive sustainable

profitable growth
2 We are expanding our leading market positions through

our innovative solutions, leveraging our brand equity
3 We are driving solid operational execution and significant

operating margin expansion
Page 11

Q3 2017 Financial Summary
Financial Performance: Q3 2017
Adjusted P&L Q3 2016 Q3 2017 YOY Change

+6% +4%*
Revenue $655M $689M constant
currency
core
growth
Gross Margin 48.1% 48.3% +20 bps
Operating Margin 15.2% 16.1% +90 bps
Adjusted EPS $0.81 $0.91 +12%
YTD Cash Flow From Operations $205M $240M +17%
Delivering solid financial results in-line with expectations

Page 13

Strong Q3 2017 Revenue Growth
Q3 2017 Revenue Growth Q3 2017 Revenue Drivers
% Growth Year-over-Year
Driving durable revenue growth with solid
performance across all three businesses
Improving international growth trends
Diversifying the portfolio through
portfolio optimization
6% 6% Capturing value from new product
5% introductions
4%
Core* Mortara Non-Core Constant FX Reported

+4%
Growth Acquisition Divestitures Currency Growth Core Revenue Growth*
Growth
Improving core business and international trends

Page 14

Revenue By Business: Q3 2017
Patient Support Systems Front Line Care Surgical Solutions
Q3 2017 YTD 2017

Q3 2017 YTD 2017 Q3 2017 YTD 2017
Exceeding expectations
U.S. core product revenue Capitalizing on recent
with Integrated Table
(capital and CWS) grew +4% product introductions
Motion adoption
Improving international
Continuing strength within Driving double-digit growth
trends in Middle East &
Vital Signs portfolio outside the U.S.
Latin America
Accelerating exit of low- Continuing momentum in
Integrating the Mortara
margin third-party rental surgical positioning
acquisition
contracts equipment
Launching innovative
Expecting Vlker divestiture Investing in innovation to
MonarchTM Airway
to close Q4 2017 drive future growth
Clearance System
Note: All revenue growth rates are constant currency
Page 15

Patient Support Systems
Growth Drivers
Leveraging relationships and broad, differentiated
portfolio across installed base
Placing commercial focus on higher growth and margin
opportunities (CWS, patient handling, ICU, Service)
Diversifying revenue while creating operational flexibility Frames & Surfaces Clinical Workflow Solutions Patient Handling
to address capital volatility
Innovating to provide caregivers predictive insights that Other
result in lower costs and efficiencies PSS
CWS & Patient Rental &

Quarter Year to Date Service
Handling YTD
Q3 2017 Rev. CC YTD Rev. CC $1,053M
US$M Revenue Growth Growth Revenue Growth Growth
+1% cc
US $255.0 (1.4%) (1.4%) $766.5 +1.1% +1.1%
MedSurg Beds
OUS $99.7 (2.5%) (0.2%) $286.3 (3.4%) (0.8%)
Specialty Beds
Total $354.7 (1.7%) (1.1%) $1,052.8 (0.2%) +0.5%
Diversified portfolio drives stable long-term growth and reduces volatility
Page 16

Front Line Care
Growth Drivers
Providing solutions that improve clinical outcomes and
patient safety
Leveraging Hill-Roms global reach, brand and
commercial capabilities Physical Assessment Vital Signs Respiratory Care
Combining Welch Allyn technological leadership to
further advance sensing and connectivity solutions
Expanding portfolio leadership in ambulatory care with Other
new diagnostic screening products (RetinaVueTM, Thermometry
SpotTM Vision Screener) & Blood
Respiratory YTD Pressure
Quarter Year to Date
$640M
Q3 2017 Rev. CC YTD Rev. CC +8% cc
US$M Revenue Growth Growth Revenue Growth Growth
Physical
US $162.8 +17.0% +17.0% $457.4 +7.2% +7.2% Vital Signs
Assessment
OUS $64.3 +20.2% +23.6% $182.5 +6.3% +8.4%
Total $227.1 +17.9% +18.8% $639.9 +7.0% +7.6%
Significant opportunity to drive commercial value and innovation
Page 17

Surgical Solutions
Growth Drivers
Optimizing position with key customers while leveraging
commercial presence in targeted geographic markets
Capitalizing on comprehensive service infrastructure to
support critical surgical equipment Operating Tables Operating Lights Consumables
Focusing on patient safety and efficiency in the OR and
peri-operative environment
Expanding portfolio for minimally invasive surgical access Blades &
with launch of Integrated Table Motion Scalpels
OR Tables &
Other OR Lights
Quarter Year to Date Consumables YTD
Q3 2017 Rev. CC YTD Rev. CC $313M
US$M Revenue Growth Growth Revenue Growth Growth +8% cc
US $53.1 0.0% 0.0% $158.4 +7.4% +7.4% Patient
Positioning OR Booms,
OUS $54.2 +11.5% +14.6% $154.3 +3.8% +7.5% Pendants &
Other
Total $107.3 +5.5% +7.0% $312.7 +5.6% +7.5%
Accelerating long-term growth of strong, innovative portfolio

across global footprint
Page 18

Driving Continued Margin Expansion
Q3 2017 Adjusted Gross Margin Q3 2017 Adjusted Operating Margin
+70 bps
+30 bps +20 bps
+30 bps
+30 bps
16.1%
15.2%
(70) bps
48.3%
48.1%
Q3 2016 Mortara Mix Cost PSS Rental Q3 2017 Q3 2016 GM Opex Q3 2017
Savings & Expansion Leverage
Surgical
+20 bps +90 bps

Gross Margin Expansion Operating Margin Expansion
Expanding operating margin to 16.1%, the highest level of the year

Note: Axis not to scale
Page 19

Growing Adjusted Earnings Per Share
Q3 2017 Adjusted EPS Drivers Q3 2017 Adjusted EPS

Driving diversified revenue growth US$ +12%
growth
Executing margin expansion initiatives
with mix benefits and supply chain $0.91
initiatives $0.81
Absorbing PSS Rental and Surgical margin

headwinds
Managing costs resulting in SG&A leverage
Investing in R&D to support future growth
$0.91
Adjusted Earnings Per Diluted Share Q3 2016 Q3 2017
Delivering eighth consecutive quarter of double-digit earnings growth
Page 20

Driving Significant Cash Flow
With Disciplined Capital Allocation
Strong Cash Flow Generation Capital Allocation Priorities
US$ Millions
Reducing debt levels
Q3 YTD 2016
Q3 YTD 2017
Raising dividend by 6% in FY2017
$240 Re-investing in business (R&D and CapEx)

$205
$166 Executing disciplined M&A strategy
$145 emphasizing:
Accelerated growth with diversified revenue
streams and accretive P&L profile
Operating Free Products and services that strengthen clinical
Cash Flow Cash Flow and economic value with customers
+17% Growth ~3.2x*

Q3 YTD Operating Cash Flow Leverage by 2018
*Includes the acquisition of Mortara Instrument and assumes no further M&A activity
Enhancing financial flexibility with strong cash flow generation
Page 21

2017 Financial Outlook
2017 Financial Guidance Update
2017 Guidance 2017 Guidance
~3%* Adjusted P&L
Revenue Growth
(Q2 Conference Call) (Q3 Conference Call)
Core Revenue Growth (constant currency) 4.5% - 5.0% ~4%

Revenue Growth
(reported) 3.5% - 4.0% ~3%
125+ bps Gross Margin ~49% ~48.5%

Operating Margin
Expansion Operating Margin 125+ bps 125+ bps
Adjusted EPS $3.82 - $3.88 $3.80 - $3.84

12% - 14%
Growth in Operating Cash Flow $330M - $340M $330M - $340M
Adjusted EPS
Capital Expenditures $120M - $130M ~$115M
Updating full-year guidance for Vlker divestiture

and phasing of international orders
*Core revenue growth is constant currency, and excludes Mortara
and the revenue impact from completed and announced
Page 23 divestitures (with FY2016 annual revenue of ~$75 million).
2017 Financial Guidance (Revenue By Business)
Patient Support Systems Front Line Care Surgical Solutions
FY 2017 FY 2017 FY 2017
Monitoring U.S. Leveraging Hill-Rom global Assuming modest growth

healthcare landscape commercial platform in surgical procedures
Driving growth of higher Continuing momentum in Accelerating revenue of

margin platforms U.S. Vital Signs portfolio Integrated Table Motion
Divesting non-core assets Driving adoption of new

Launching new products in
with lower growth and diagnostic screening
patient positioning
margin profile portfolio
Driving OUS growth
Continuing international Expanding recurring
following recent
momentum revenue streams
commercial realignment
Note: All revenue growth rates are constant currency
*Core revenue excludes Mortara and the revenue impact from completed and announced divestitures (with FY2016 annual revenue of ~$75 million).
Page 24

Q4 2017 Financial Guidance
Q4 2017 Guidance Reflects

Q4 2017
Adjusted P&L
Guidance Continued core momentum and benefit
from recent new product launches
Core Revenue Growth* Core international growth in mid-single
(constant currency) ~3%
digits* despite phasing of orders
Revenue Growth Revenue impact from completed and
(constant currency) 3% - 4% announced divestitures of ~$20M
Revenue Growth Focused cost discipline resulting in
(reported) 3% - 4% operating margin expansion
Adjusted EPS $1.26 - $1.30 7% - 10%

*Core revenue growth is constant currency, and excludes Mortara and the revenue impact from completed and
potential divestitures (with FY2016 annual revenue of ~$75 million). Adjusted EPS Growth
Solid top-line growth and operating leverage driving

adjusted EPS growth
Page 25

Revenue Reclassification
Reported Revenue - Reconciliation of Segments
Q1 2017 Q1 2016 % Growth @ Actual Rates % Growth @ Constant Rates
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems $ 248.4 $ 86.8 $ 335.2 $ 241.4 $ 100.3 $ 341.7 2.9% -13.5% -1.9% 2.9% -10.7% -1.1%
Front Line Care 147.7 54.1 201.8 155.1 65.1 220.2 -4.8% -16.9% -8.4% -4.8% -15.7% -8.0%
Surgical Solutions 51.5 48.9 100.4 46.8 52.5 99.3 10.0% -6.9% 1.1% 10.0% -2.9% 3.2%
Total Hill-Rom $ 447.6 $ 189.8 $ 637.4 $ 443.3 $ 217.9 $ 661.2 1.0% -12.9% -3.6% 1.0% -10.3% -2.7%
Patient Support Systems $ 263.1 $ 99.8 $ 362.9 $ 258.4 $ 93.8 $ 352.2 1.8% 6.4% 3.0% 1.8% 9.2% 3.8%
Front Line Care 146.9 64.1 211.0 132.2 53.1 185.3 11.1% 20.7% 13.9% 11.1% 22.8% 14.5%
Surgical Solutions 53.8 51.2 105.0 47.6 47.5 95.1 13.0% 7.8% 10.4% 13.0% 11.8% 12.4%
Total Hill-Rom $ 463.8 $ 215.1 $ 678.9 $ 438.2 $ 194.4 $ 632.6 5.8% 10.6% 7.3% 5.8% 13.5% 8.2%
Patient Support Systems $ 255.0 $ 99.7 $ 354.7 $ 258.7 $ 102.3 $ 361.0 -1.4% -2.5% -1.7% -1.4% -0.2% -1.1%
Front Line Care 162.8 64.3 227.1 139.2 53.5 192.7 17.0% 20.2% 17.9% 17.0% 23.6% 18.8%
Surgical Solutions 53.1 54.2 107.3 53.1 48.6 101.7 - % 11.5% 5.5% - % 14.6% 7.0%
Total Hill-Rom $ 470.9 $ 218.2 $ 689.1 $ 451.0 $ 204.4 $ 655.4 4.4% 6.8% 5.1% 4.4% 9.5% 6.0%
YTD 2017 YTD 2016 % Growth @ Actual Rates % Growth @ Constant Rates
Patient Support Systems $ 766.5 $ 286.3 $ 1,052.8 $ 758.5 $ 296.4 $ 1,054.9 1.1% -3.4% -0.2% 1.1% -0.8% 0.5%
Front Line Care 457.4 182.5 639.9 426.5 171.7 598.2 7.2% 6.3% 7.0% 7.2% 8.4% 7.6%
Surgical Solutions 158.4 154.3 312.7 147.5 148.6 296.1 7.4% 3.8% 5.6% 7.4% 7.5% 7.5%
Total Hill-Rom $ 1,382.3 $ 623.1 $ 2,005.4 $ 1,332.5 $ 616.7 $ 1,949.2 3.7% 1.0% 2.9% 3.7% 3.8% 3.8%
Note: Segment revenue by U.S. and International for Fiscal Year Ended 9/30/2016 and 9/30/2017 in US$ million
Page 27

2015 & 2016 Reported Revenue
Patient Support Systems $ 241 $ 100 $ 342 $ 219 $ 119 $ 338 10% -16% 1% 10% -7% 4%
Front Line Care 155 65 220 21 1 22 N/M N/M N/M N/M N/M N/M
Surgical Solutions 47 53 99 45 60 105 5% -13% -5% 5% -3% 0%

Total Hill-Rom $ 443 $ 218 $ 661 $ 284 $ 181 $ 465 56% 21% 42% 56% 34% 47%
Surgical Solutions 48 48 95 44 55 99 8% -14% -4% 8% -12% -3%

Total Hill-Rom $ 438 $ 194 $ 633 $ 297 $ 178 $ 475 48% 9% 33% 48% 13% 35%
Surgical Solutions 53 49 102 47 52 99 13% -6% 3% 13% -6% 3%

Total Hill-Rom $ 451 $ 204 $ 655 $ 308 $ 167 $ 475 47% 23% 38% 47% 24% 39%

Surgical Solutions 60 53 112 61 59 120 -2% -10% -6% -2% -8% -5%
Total Hill-Rom $ 497 $ 209 $ 706 $ 384 $ 190 $ 574 29% 10% 23% 29% 12% 24%
Patient Support Systems $ 1,037 $ 400 $ 1,437 $ 959 $ 468 $ 1,427 8% -15% 1% 8% -11% 2%
Total Hill-Rom $ 1,829 $ 826 $ 2,655 $ 1,273 $ 715 $ 1,988 44% 15% 34% 44% 20% 35%
Page 28

2015 & 2016 Pro Forma Revenue
Front Line Care Pro Forma 155 65 220 140 69 208 11% -5% 6% 11% 4% 9%
Surgical Solutions 47 53 99 45 60 105 5% -13% -5% 5% -3% 0%

Total Hill-Rom $ 443 $ 218 $ 661 $ 403 $ 248 $ 651 10% -12% 2% 10% -3% 5%

Total Hill-Rom $ 438 $ 194 $ 633 $ 397 $ 232 $ 628 10% -16% 1% 11% -13% 2%
Front Line Care Pro Forma 139 54 193 141 50 190 -1% 8% 1% -1% 10% 2%
Surgical Solutions 53 49 102 47 52 99 13% -6% 3% 13% -6% 3%

Total Hill-Rom $ 451 $ 204 $ 655 $ 427 $ 216 $ 643 6% -5% 2% 6% -4% 2%

Front Line Care Pro Forma 158 53 212 142 57 200 11% -7% 6% 11% -7% 6%
Surgical Solutions 60 53 112 61 59 120 -2% -10% -6% -2% -8% -5%
Total Hill-Rom $ 497 $ 209 $ 706 $ 472 $ 229 $ 701 5% -9% 1% 5% -8% 1%
Patient Support Systems $ 1,037 $ 400 $ 1,437 $ 959 $ 468 $ 1,427 8% -14% 1% 8% -11% 2%
Total Hill-Rom $ 1,829 $ 826 $ 2,655 $ 1,699 $ 924 $ 2,623 8% -11% 1% 8% -7% 3%
* Pro Forma includes Welch Allyn in both periods
Page 29

Appendix
Reconciliations of Non-GAAP Disclosures
Reconciliation: Constant Currency Revenue
Quarter Ended June 30
US OUS
As Constant As As Constant
2017 2016 Reported Currency Reported Reported Currency
Product Sales and Service $ 593.1 $ 556.0 6.7% 7.6% 6.1% 7.8% 10.5%
Rental 96.0 99.4 (3.4%) (2.9%) (2.4%) (11.0%) (6.8%)
Total $ 689.1 $ 655.4 5.1% 6.0% 4.4% 6.8% 9.5%
US OUS
Patient Support Systems $ 354.7 $ 361.0 (1.7%) (1.1%) (1.4%) (2.5%) (0.2%)
Front Line Care 227.1 192.7 17.9% 18.8% 17.0% 20.2% 23.6%
Surgical Solutions 107.3 101.7 5.5% 7.0% - % 11.5% 14.6%
Total $ 689.1 $ 655.4 5.1% 6.0% 4.4% 6.8% 9.5%
Year Ended June 30
US OUS
Product Sales and Service $ 1,714.6 $ 1,650.4 3.9% 4.8% 5.1% 1.7% 4.3%
Rental 290.8 298.8 (2.7%) (2.1%) (1.8%) (9.3%) (4.8%)
Total $ 2,005.4 $ 1,949.2 2.9% 3.8% 3.7% 1.0% 3.8%
US OUS
Patient Support Systems $ 1,052.8 $ 1,054.9 (0.2%) 0.5% 1.1% (3.4%) (0.8%)
Front Line Care 639.9 598.2 7.0% 7.6% 7.2% 6.3% 8.4%
Surgical Solutions 312.7 296.1 5.6% 7.5% 7.4% 3.8% 7.5%
Total $ 2,005.4 $ 1,949.2 2.9% 3.8% 3.7% 1.0% 3.8%
Page 31

Reconciliation: Operating Expenses
($ in millions) Quarter Ended June 30 Year To Date Ended June 30

2017 2016 2017 2016
Selling and Administrative Expenses (As Reported) $ 221.0 $ 209.9 $ 652.2 $ 640.5
Acquisition and integration costs (4.1) (3.5) (16.3) (14.2)
Acquisition-related intangible asset amortization (28.1) (24.1) (80.2) (72.1)
Litigation settlements and expenses (1.6) - (2.5) -
Selling and Administrative Expenses (Adjusted) $ 187.2 $ 182.3 $ 553.2 $ 554.2
Selling and Administrative Expenses (Adjusted) As Percent of Total Revenue 27.2% 27.8% 27.6% 28.4%
Year Over Year % Change 2.7% -0.2%
Year Over Year Change (60) bps (80) bps
Page 32

Reconciliation: Gross Margin, Operating Margin And
Earnings Per Share
($ in millions, except EPS) Quarter Ended June 30, 2017 Quarter Ended June 30, 2016
Income Income
Before Income Before Income
Gross Operating Income Tax Diluted Gross Operating Income Tax Diluted
1
Margin Margin Taxes Expense EPS Margin Margin Taxes Expense EPS
GAAP Basis 48.0% 5.9% $ 16.1 $ 10.4 $ 0.09 48.1% 8.9% $ 35.3 $ (9.7) $ 0.68
Adjustments:
Acquisition and integration costs 0.3% 0.9% 5.9 2.4 0.05 - 0.5% 3.5 0.7 0.04
Acquisition-related intangible asset amortization - 4.1% 28.1 9.4 0.28 - 3.7% 24.1 8.2 0.24
Litigation settlements and expenses - 0.2% 1.6 0.6 0.02 - - - - -
Special charges - 5.1% 34.8 2.7 0.47 - 2.1% 13.7 4.7 0.13
Foreign valuation allowance - - - - - - - - 18.8 (0.28)
Adjusted Basis 48.3% 16.1% $ 86.5 $ 25.5 $ 0.91 48.1% 15.2% $ 76.6 $ 22.7 $ 0.81
Year to Date Ended June 30, 2017 Year to Date Ended June 30, 2016
Income Income
Margin Margin1 Taxes Expense EPS1 Margin Margin1 Taxes Expense EPS
GAAP Basis 47.8% 8.0% $ 92.7 $ 29.5 $ 0.95 46.7% 7.0% $ 69.2 $ (2.2) $ 1.09
Adjustments:
Acquisition and integration costs 0.1% 1.0% 19.1 8.0 0.17 1.0% 1.7% 33.7 9.7 0.36
Field corrective actions - - 0.5 (0.1) 0.01 - - 0.1 (0.1) -
Litigation settlements and expenses - 0.1% 2.5 0.9 0.02 - - - - -
Special charges - 2.2% 43.7 5.5 0.57 - 1.6% 31.5 10.5 0.32
Foreign tax law change - - - (2.2) 0.03 - - - - -
Foreign valuation allowance - - - - - - - - 18.8 (0.28)
Gain on disposition - - (1.0) (0.4) (0.01) - - - - -
Adjusted Basis 47.9% 15.3% $ 237.7 $ 67.9 $ 2.54 47.7% 14.1% $ 206.6 $ 61.4 $ 2.20
1
Total does not add due to rounding.
Page 33

Reconciliation: Gross Margin, Operating Margin And
Earnings Per Share
Year Ended September 30, 2016 Year Ended September 30, 2015
Income Income
Margin Margin1 Taxes Expense EPS1 Margin Margin1 Taxes Expense EPS
GAAP Basis 47.3% 8.7% $ 138.3 $ 15.5 $ 1.86 44.3% 4.2% $ 65.1 $ 18.3 $ 0.82
Adjustments:
Acquisition and integration costs 0.8% 1.5% 38.9 11.3 0.41 0.8% 3.2% 62.8 18.0 0.76
FDA remediation expenses - - - - - - 0.2% 3.8 1.2 0.04
Field corrective actions - - 0.2 (0.1) - 0.2% 0.2% 4.5 1.4 0.05
Litigation settlements and expenses - - - - - - - (0.6) (0.2) (0.01)
Special charges - 1.5% 39.9 13.4 0.40 - 2.1% 41.2 10.7 0.52
Supplemental stock compensation charge - - - - - - 0.3% 6.1 2.2 0.07
Foreign valuation allowance - - - 19.5 (0.29) - - - 1.9 (0.03)
Debt refinancing - - 12.9 4.7 0.12 - - - - -
Gain on disposition - - (10.1) (3.7) (0.10) - - - - -
Adjusted Basis 48.1% 15.3% $ 316.0 $ 92.3 $ 3.38 45.3% 11.8% $ 217.0 $ 63.3 $ 2.64
1
Total does not add due to rounding.
Page 34

Hill-Rom Third Quarter 2017 Earnings Presentation

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Hill-Rom Third Quarter 2017 Earnings Presentation

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Third Quarter 2017 Financial Results

July 28, 2017

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Leadership Innovation Value

2016 Revenue By Business Increased Investment in R&D Key Valuation Metrics

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Innovating to enhance outcomes for patients and their caregivers

Transforming the portfolio with disciplined M&A and business development

Enhancing shareholder value with disciplined financial management

Creating shareholder value by executing our strategy

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Surgical Service &

$2.0B Specialty Beds MedSurg

Benefiting from portfolio optimization and diversification efforts

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

U.S. capital accounts for <20% of Hill-Roms revenue

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Adjusted GM %* 45.3% 48.1% +350-450 bps

Adjusted EPS* $2.64 $3.38 Mid-to-high teens CAGR

Operating Cash $1B+ cumulative

Leverage 4.5x 3.9x ~3.2x4

* Refer to the appendix for reconciliations of GAAP to adjusted metrics

Enhancing shareholder value through sustainable growth

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

1 We are successfully transforming to drive sustainable

2 We are expanding our leading market positions through

3 We are driving solid operational execution and significant

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Adjusted P&L Q3 2016 Q3 2017 YOY Change

Gross Margin 48.1% 48.3% +20 bps

Operating Margin 15.2% 16.1% +90 bps

Adjusted EPS $0.81 $0.91 +12%

YTD Cash Flow From Operations $205M $240M +17%

Delivering solid financial results in-line with expectations

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Core* Mortara Non-Core Constant FX Reported

Improving core business and international trends

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Q3 2017 YTD 2017

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

CWS & Patient Rental &

Diversified portfolio drives stable long-term growth and reduces volatility

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Total $227.1 +17.9% +18.8% $639.9 +7.0% +7.6%

Significant opportunity to drive commercial value and innovation

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Accelerating long-term growth of strong, innovative portfolio

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

+20 bps +90 bps

Expanding operating margin to 16.1%, the highest level of the year

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Q3 2017 Adjusted EPS Drivers Q3 2017 Adjusted EPS

Absorbing PSS Rental and Surgical margin

Delivering eighth consecutive quarter of double-digit earnings growth

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

$240 Re-investing in business (R&D and CapEx)

+17% Growth ~3.2x*

Enhancing financial flexibility with strong cash flow generation

2017 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

Core Revenue Growth (constant currency) 4.5% - 5.0% ~4%

125+ bps Gross Margin ~49% ~48.5%

Adjusted EPS $3.82 - $3.88 $3.80 - $3.84

Updating full-year guidance for Vlker divestiture