Third Quarter 2018 Financial Results...YTD Fiscal 2018 Returned to Shareholders* Value Transforming to drive sustainable profitable growth and shareholder value Note: Hill-Rom fiscal

Third Quarter 2018 Financial Results

July 27, 2018

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© 2018 Hill-Rom Services, Inc. ALL RIGHTS RESERVED

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-Rom’s ability to drive

sustainable profitable growth and shareholder value, the timing and success of new product launches and

portfolio expansion, 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 M&A and business

optimization initiatives, our ability to reduce debt, the impact of the new U.S. tax reform legislation, 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-Rom’s 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. Certain financial figures presented herein have been presented on an adjusted basis (non-

GAAP). Reconciliation between non-GAAP financial measures and reported U.S. GAAP measures are

included in the appendices to this slide deck.

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Q3 2018 Highlights

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InnovationAdvancing global scale andbrand equity whileenhancing outcomes

Leadership$2.7B global medical technology leader with market-leading positions

2017 Revenue by BusinessUS$ Billions

Increased Investment in R&DUS$ Millions

Patient Support SystemsFront

Line Care

Surgical Solutions

$2.7BFY 2017

Key Valuation MetricsAs of 6/30/2018

Market Capitalization

$92

$134

2015 2017

4.6% of revenue

4.9% of revenue $5.8B

$7.8B

+11%

$46M

LTM Total Shareholder Return

Enterprise Value

YTD Fiscal 2018 Returned to Shareholders*

ValueTransforming to drive sustainable profitable growth and shareholder value

Note: Hill-Rom fiscal year end is September 30 *Includes dividends and share repurchases

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Enhancing Shareholder Value By Executing Our Strategy

Driving operational execution and strong financial performance• Accelerating core revenue growth to 4%*, expanding margins, growing adjusted EPS by 26% to $1.15

• Reaffirming full-year adjusted EPS guidance with tightened range of $4.62 to $4.65 per diluted share

Expanding internationally and penetrating emerging markets• Continuing international momentum while absorbing headwinds in Asia Pacific and Latin America

• Driving increased penetration with Hill-Rom’s global presence, brand and “One Hill-Rom” approach

Transforming the portfolio with select M&A and optimization initiatives• Optimizing business portfolio with completed divestitures and exit of non-strategic assets

• Realizing Mortara synergies; divesting third-party rental; winding down third-party surfaces business

Advancing category leadership with differentiated solutions and innovation• Building on a diversified portfolio to drive sustainable growth and profitability

• Capitalizing on several new product introductions with Q3 2018 YTD revenue of $180M+

Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the appendix to this presentation *Core revenue excludes foreign currency, divestitures and non-strategic assets the company plans to exit

Q3 2018 Financial Summary

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Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the appendix to this presentation; Axis not to scale *Core revenue excludes foreign currency, divestitures and non-strategic assets the company plans to exit

+26%Growth

Q3 2017 Q3 2018

$0.91

+4%Core*

Growth

Q3 2017 Q3 2018

+4%Growth

+120BPS

Q3 2017 Q3 2018

Accelerating Core Revenue Growth And Exceeding Adjusted EPS Guidance

$689M16.1%

Q3 YTD 2017 Q3 YTD 2018

OperatingMargin

RevenueEarnings Per Share

OperatingCash Flow

$709M 17.3% $1.15$240M

$250M

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Driving 12th Consecutive Quarter Of Double-Digit Adjusted EPS Growth

Fiscal Third Quarter

Adjusted P&L 2017 2018 YOY Change

Revenue $689M $709M

Gross Margin 48.3% 49.1% +80 bps

Operating Margin 16.1% 17.3% +120 bps

Adjusted EPS $0.91 $1.15 +26%

+1%constant currency

+4%core*

growth

Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the appendix to this presentation; Axis not to scale *Core revenue excludes foreign currency, divestitures and non-strategic assets the company plans to exit

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Delivering strong U.S. core growth across key capital product categories

Driving double-digit MedSurg orders and backlog growth

Meeting large customer demand for CWS with +15% YTD growth

Winding down lower-margin third-party surface business

Sustaining solid Integrated Table Motion placements

Enhancing safety and ease-of-use with new products and upgrades

Advancing innovation and partnerships to drive future growth

Absorbing difficult growth comparison in MEATI and lower OEM revenue

Driving growth with new product introductions

Continuing solid growth in thermometry and physical assessment

Delivering +10% YTD Respiratory Care growth

Increasing international penetration with “One Hill-Rom” approach

Patient Support Systems Surgical SolutionsFront Line Care

Note: All revenue growth rates are constant currency *Core revenue excludes foreign currency, divestitures, non-strategic assets the company plans to exit, and Mortara prior to the anniversary date of the acquisition

Q3 2018 YTD 2018Q3 2018

YTD 2018Q3 2018 YTD 2018

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Connex® Spot Monitor

Spot™ Vision Screener

LikoGuard®Patient Handling

Integrated Table Motion

RetinaVue™

VisiVest®

iLed® 7Surgical Light

Centrella™ Smart+ Bed (MedSurg Bed

System)

Accella™(OUS MedSurg/ICU

Bed System)

Welch Allyn Home™ Hypertension

Monarch™Vest

TS 3000Surgical Table

Connex® Vital Spot Monitor With ECG

Spot™Vision Screener

(New Indications)

Physical AssessmentRevitalization

2015 2016 2017

Next-GenAllen® Advance

Table

Welch AllynHome™ Products

Vital SignsPatch

Next-GenSurgical Table

2018 - 2020 Outlook

Next-Gen RetinaVue™

Next-Gen Respiratory Therapy

WatchCare™Incontinence

Linq™ Mobile

Next-GenSurfaces

Patient HandlingOH Platform

New Products Contributing $180M+ YTD 2018

Patient Support Systems

Front Line Care

Surgical Solutions

Launched

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Centrella™ Smart+ Bed

✓ Improving patient safety and satisfaction with enhanced features, minimizing the risk of falls

✓ Enhancing caregiver features for quick and easy updates, such as integrating with NaviCare® Patient Safety applications

✓ Meeting customers’ evolving needs by creating a scalable platform

✓ Connecting members of care teams to each other, to their patients and to patient information, in real-time

✓ Integrating clinical workflows and driving connectivity in the care setting

✓ Improving care-team collaboration, communication and efficiency

Linq™Mobile

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Vision CarePortfolio

Monarch™Airway Clearance System

✓ Providing convenient and easy-to-use solutions to improve vision care

✓ Delivering an objective and consistent approach to screenings with Spot Vision Screener

✓ Enabling diabetic retinopathy exams in primary care settings with RetinaVue

✓ Elevating patient quality-of-life with portable, Bluetooth enabled vest

✓ Increasing therapy compliance with increased flexibility from mobility freedom

✓ Enhancing connected care discussions and early interventions via connectivity options

RetinaVue™ Network

Spot™Vision Screener

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Integrated TableMotion

iLED™ 7Surgical Light

✓ Delivering seamless system for table adjustments during robotic-assisted surgical procedures

✓ Enhancing safety and efficiency in the operating room

✓ Incorporating technology to improve hospital efficiency and information flow

✓ Optimizing the lighting environment at all times during surgery

✓ Improving safety and efficiency by eliminating the need for manual lighting adjustments

✓ Driving innovation with streamlined design and options for additional integration features

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16.1%

17.3%

Q3 2017 GMExpansion

OpexLeverage

Q3 2018

+80 bpsGross Margin Expansion

Driving Margin Expansion With Ongoing Optimization Initiatives, New Products, Manufacturing Productivity And Procurement Efforts

48.3%49.1%

Q3 2017 PortfolioOptimization

Mix & OperationalEfficiencies

Q3 2018

Adjusted Gross Margin Adjusted Operating Margin

+45 bps+80 bps

+120 bpsOperating Margin Expansion

+35 bps

Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the appendix to this presentation; Axis not to scale

+40 bps

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$0.91

$1.15

Q3 2017 Q3 2018

$1.15Adjusted Earnings Per Diluted Share

Exceeding Guidance With +26% Adjusted EPS Growth

Adjusted EPS GrowthUS$

Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the appendix to this presentation *Core revenue excludes foreign currency, divestitures and non-strategic assets the company plans to exit

+26% growth

• Accelerating core revenue growth to 4%*

• Driving positive contribution from new products, portfolio diversification and ongoing operational efficiencies

• Enhancing global commercial capabilities by investing in key strategic initiatives

• Realizing benefit from U.S. tax reform legislation and stock-based compensation

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Balanced Capital Allocation

• Reducing debt levels

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

• Sustaining quarterly dividend

• Executing disciplined M&A strategy emphasizing:

✓ Accelerated growth with diversified revenue streams and accretive P&L profile

✓ Products and services that strengthen clinical and economic value with customers

Cash FlowUS$ Millions

$240

$166

$250

$178

OperatingCash Flow

FreeCash Flow

Q3 YTD 2017

Q3 YTD 2018

~4.0x → ~3.2x*

Enhancing Financial Flexibility With Strong Cash Flow Generation

2017 Leverage 2018 Leverage

Note: Leverage calculated as Total Debt divided by EBITDA as defined in Hill-Rom’s compliance certificate *Assumes no further M&A activity

2018 Financial Outlook

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~20%Growth in

Adjusted EPS

~100 bpsOperating Margin

Expansion

~3%Core Revenue

Growth*

Driving Strong Adjusted Earnings And Cash Flow Growth

Adjusted P&L

2018 Prior

Outlook

2018 CurrentOutlook

Revenue Growth

(reported) 3% - 4% 3% - 4%

Gross Margin +75 bps +75 bps

Operating Margin +100 bps +100 bps

Adjusted EPS $4.60 - $4.65 $4.62 - $4.65

Operating Cash Flow ~$350M ~$350M

Capital Expenditures ~$110M ~$100M

Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the appendix to this presentation; *Core revenue excludes foreign currency, divestitures, non-strategic assets the company plans to exit, and Mortara prior to the anniversary date of the acquisition

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CoreRevenue*

Mortara Non-Strategic ConstantCurrency

FX ReportedRevenue

Delivering Solid 2018 Core Revenue Growth Of ~3%

2018 Revenue Growth

~3% 3% - 4%

2018 Revenue Growth Outlook

Constant Core*

Patient Support Systems

Front Line Care

Surgical SolutionsLow-to-MidSingle Digits

Total Hill-Rom

Decline Low-Single Digits

Low-Single Digits

High-SingleDigits

Low-to-Mid Single Digits

2% - 3% ~3%

2% - 3%

Note: All growth rates are constant currency *Core revenue excludes foreign currency, divestitures, non-strategic assets the company plans to exit, and Mortara prior to the anniversary date of the acquisition

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Q4 2018 Outlook Reflects:

• Maintaining core revenue growth momentum and benefit from new products

• Anticipating higher margins:

✓ Higher revenue

✓ Improved surgical margins

✓ Cost and business optimization initiatives savings

• Executing on strategic initiatives and key investments to drive future growth

Adjusted P&L

Q4 2018Outlook

Revenue Growth ~2%Reported

Revenue Growth

Adjusted EPS $1.50 - $1.53

Sustaining Core Revenue Growth While InvestingIn Key Strategic Growth Initiatives

~2%Constant

3% - 4%Core*

*Core revenue excludes foreign currency, divestitures and non-strategic assets the company plans to exit

Revenue Schedules

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United States International Total United States International Total United States International Total United States International Total

Patient Support Systems 243.6$ 90.8$ 334.4$ 248.4$ 86.8$ 335.2$ -1.9% 4.6% -0.2% -1.9% -2.0% -1.9%

Front Line Care 158.2 66.4 224.6 147.7 54.1 201.8 7.1% 22.8% 11.3% 7.1% 17.0% 9.8%

Surgical Solutions 50.9 59.8 110.7 50.0 50.4 100.4 1.8% 18.6% 10.3% 1.8% 9.7% 5.8%

Total Hill-Rom 452.7$ 217.0$ 669.7$ 446.1$ 191.3$ 637.4$ 1.5% 13.4% 5.1% 1.5% 6.5% 3.0%


Patient Support Systems 248.7$ 106.3$ 355.0$ 263.1$ 99.8$ 362.9$ -5.5% 6.5% -2.2% -5.5% -2.0% -4.5%

Front Line Care 162.9 75.0 237.9 146.9 64.1 211.0 10.9% 17.0% 12.7% 10.9% 10.1% 10.7%


Total Hill-Rom 466.0$ 244.5$ 710.5$ 461.6$ 217.3$ 678.9$ 1.0% 12.5% 4.7% 1.0% 3.5% 1.8%


Patient Support Systems 268.6$ 91.1$ 359.7$ 255.0$ 99.7$ 354.7$ 5.3% -8.6% 1.4% 5.3% -12.5% 0.3%

Front Line Care 169.5 69.5 239.0 162.8 64.3 227.1 4.1% 8.1% 5.2% 4.1% 3.7% 4.0%

Surgical Solutions 55.6 54.3 109.9 51.6 55.7 107.3 7.8% -2.5% 2.4% 7.8% -7.9% -0.4%

Total Hill-Rom 493.7$ 214.9$ 708.6$ 469.4$ 219.7$ 689.1$ 5.2% -2.2% 2.8% 5.2% -6.6% 1.4%


Patient Support Systems 760.9$ 288.2$ 1,049.1$ 766.5$ 286.3$ 1,052.8$ -0.7% 0.7% -0.4% -0.7% -5.7% -2.1%

Front Line Care 490.6 210.9 701.5 457.4 182.5 639.9 7.3% 15.6% 9.6% 7.3% 9.9% 8.0%


Total Hill-Rom 1,412.4$ 676.4$ 2,088.8$ 1,377.1$ 628.3$ 2,005.4$ 2.6% 7.7% 4.2% 2.6% 0.9% 2.0%

YTD 2018 YTD 2017 % Growth @ Actual Rates % Growth @ Constant Rates

Q3 2018 Q3 2017 % Growth @ Actual Rates % Growth @ Constant Rates



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Note: Segment revenue by U.S. and International for Fiscal Year ended 9/30/2017 and 9/30/2016 in US$ million; Certain revenue amounts have been reclassified for Surgical Solutions between U.S. and International to more accurately align with the destination of the revenue and to be consistent with the 2018

presentation. These changes do not have a significant impact in comparison to previously reported amounts and growth rates


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 50.0 50.4 100.4 44.3 55.0 99.3 12.9% -8.3% 1.1% 12.9% -4.5% 3.2%

Total Hill-Rom 446.1$ 191.3$ 637.4$ 440.8$ 220.4$ 661.2$ 1.2% -13.2% -3.6% 1.2% -10.6% -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%


Total Hill-Rom 461.6$ 217.3$ 678.9$ 436.6$ 196.0$ 632.6$ 5.7% 10.9% 7.3% 5.7% 13.7% 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%


Total Hill-Rom 469.4$ 219.7$ 689.1$ 448.7$ 206.7$ 655.4$ 4.6% 6.3% 5.1% 4.6% 9.0% 6.0%


Patient Support Systems 273.2$ 97.9$ 371.1$ 278.9$ 103.4$ 382.3$ -2.0% -5.3% -2.9% -2.0% -8.7% -3.8%

Front Line Care 174.3 71.1 245.4 158.4 53.1 211.5 10.0% 33.9% 16.0% 10.0% 31.8% 15.5%


Total Hill-Rom 510.5$ 227.8$ 738.3$ 493.4$ 212.6$ 706.0$ 3.5% 7.1% 4.6% 3.5% 4.0% 3.6%


Patient Support Systems 1,039.7$ 384.2$ 1,423.9$ 1,037.4$ 399.8$ 1,437.2$ 0.2% -3.9% -0.9% 0.2% -2.8% -0.6%

Front Line Care 631.7 253.6 885.3 584.9 224.8 809.7 8.0% 12.8% 9.3% 8.0% 14.0% 9.7%


Total Hill-Rom 1,887.6$ 856.1$ 2,743.7$ 1,819.5$ 835.7$ 2,655.2$ 3.7% 2.4% 3.3% 3.7% 3.7% 3.7%

Fiscal Year 2017 Fiscal Year 2016 % Growth @ Actual Rates % Growth @ Constant Rates





AppendixReconciliations Of Non-GAAP Disclosures

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Gross

Margin

Operating

Margin1

Income

Before

Income

Taxes

Income

Tax

Expense Diluted EPS

Gross

Margin

Operating

Margin1

Income

Before

Income

Taxes

Income

Tax

Expense Diluted EPS

GAAP Basis 49.1% 11.1% 55.5$ 10.3$ 0.67$ 48.0% 5.9% 16.1$ 10.4$ 0.09$

Adjustments:

Acquisition and integration costs - 0.4% 3.1 0.8 0.03 0.3% 0.9% 5.9 2.4 0.05

Acquisition-related intangible asset amortization - 3.8% 26.8 7.4 0.28 - 4.1% 28.1 9.4 0.28

Field corrective actions - - - - - 0.0% 0.0% - - -

Litigation expenses - 0.0% - - - 0.0% 0.2% 1.6 0.6 0.02

Special charges - 2.0% 14.0 4.1 0.15 - 5.1% 34.8 2.7 0.47

Tax method and law changes and related costs - 0.3 (1.0) 0.02 0.0% - - - -

Gain on disposition - - - - - - - - - -

Adjusted Basis 49.1% 17.3% 99.7$ 21.6$ 1.15$ 48.3% 16.1% 86.5$ 25.5$ 0.91$

Gross

Margin

Operating

Margin1

Income

Before

Income

Taxes

Income

Tax

Expense Diluted EPS

Gross

Margin

Operating

Margin1

Income

Before

Income

Taxes

Income

Tax

Expense

Diluted

EPS1

GAAP Basis 48.7% 8.5% 107.8$ (54.2)$ 2.40$ 47.8% 8.0% 92.7$ 29.5$ 0.95$

Adjustments:

Acquisition and integration costs - 0.4% 8.1 2.1 0.09 0.1% 1.0% 19.1 8.0 0.17

Acquisition-related intangible asset amortization - 3.9% 80.5 20.9 0.88 - 4.0% 80.2 26.7 0.79

Field corrective actions - - - - - - - 0.5 (0.1) 0.01

Litigation expenses - 0.3% 5.8 1.5 0.06 - 0.1% 2.5 0.9 0.02

Special charges - 3.1% 64.4 17.3 0.70 - 2.2% 43.7 5.5 0.57

Tax method and law changes and related costs - 1.1 68.0 (0.99) - - - (2.2) 0.03

Gain on disposition - - (1.0) - (0.01) - - (1.0) (0.4) (0.01)

Adjusted Basis 48.7% 16.1% 266.7$ 55.6$ 3.13$ 47.9% 15.3% 237.7$ 67.9$ 2.54$

1 Total does not add due to rounding.

Year to Date Ended June 30, 2018 Year to Date Ended June 30, 2017

Quarter Ended June 30, 2018 Quarter Ended June 30, 2017

AppendixOther Supplementary Schedules

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Q3 2018 Q3 YTD 2018

RevenueRev.

GrowthCC

GrowthRevenue

Rev. Growth

CC Growth

U.S. $268.6 +5.3% +5.3% $760.9 (0.7%) (0.7%)

OUS $91.1 (8.6%) (12.5%) $288.2 +0.7% (5.7%)

Total $359.7 +1.4% +0.3% $1,049.1 (0.4%) (2.1%)

Frames & Surfaces

Rental & Service

Specialty Beds

MedSurgBeds

CWS & Patient Handling

Other PSS

Clinical Workflow Solutions Patient Handling

$1,424MFY 2017

Diversified Portfolio Drives Stable, Long-Term Growth

($ in millions)

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Thermometry& Blood Pressure

Vital SignsPhysical Assessment

Respiratory

Other FLC

$885MFY 2017

Significant Opportunity To Drive Commercial Value And Innovation

Physical Assessment Vital Signs Respiratory Care

Q3 2018 Q3 YTD 2018

RevenueRev.

GrowthCC

GrowthRevenue

Rev. Growth

CC Growth

U.S. $169.5 +4.1% +4.1% $490.6 +7.3% +7.3%

OUS $69.5 +8.1% +3.7% $210.9 +15.6% +9.9%

Total $239.0 +5.2% +4.0% $701.5 +9.6% +8.0%

($ in millions)

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OR Tables & Lights

OR Booms, Pendants &

Other

Patient Positioning

Other OR Consumables

Blades & Scalpels

$435MFY 2017

Accelerating Long-Term Global Growth Of Strong, Innovative Portfolio

Operating Tables Operating Lights Consumables

Q3 2018 Q3 YTD 2018

RevenueRev.

GrowthCC

GrowthRevenue

Rev. Growth

CC Growth

U.S. $55.6 +7.8% +7.8% $160.9 +5.0% +5.0%

OUS $54.3 (2.5%) (7.9%) $177.3 +11.2% +2.3%

Total $109.9 +2.4% (0.4%) $338.2 +8.2% +3.6%

($ in millions)

Documents

Third Quarter 2018 Financial Results...YTD Fiscal 2018 Returned to Shareholders* Value Transforming to drive sustainable profitable growth and shareholder value Note: Hill-Rom fiscal