•  First quarter revenue growth of 45% - 6% constant currency organic growth

• First quarter EPS grows over 25%
• Synergy Health integration and cost synergies on track
• Quarterly dividend increased double digits to $0.28 per share

LEICESTER, U.K.  - (August 9, 2016) - STERIS plc (NYSE: STE) ("STERIS" or the "Company") today announced financial results for its fiscal 2017 first quarter ended June 30, 2016.  Fiscal 2017 first quarter revenue increased 45% to $638.4 million compared with $439.9 million for STERIS Corporation ("Old STERIS") in the first quarter of fiscal 2016, driven by growth in all four segments. Constant currency organic revenue (see Non-GAAP Financial Measures) growth was 6% for the first quarter of fiscal 2017.

"We are pleased with another strong start to a new fiscal year, with growth across all reporting segments," said Walt Rosebrough, President and Chief Executive Officer of STERIS.  "We have continued to implement our long-term strategies, as evidenced by the sale of the UK Linen Management Services business and the acquisition of Medisafe."

As reported, net income for the first quarter was $48.4 million, or $0.56 per diluted share, compared with net income of $24.3 million, or $0.40 per diluted share in the first quarter of fiscal 2016.  Adjusted net income (see Non-GAAP Financial Measures) for the first quarter of fiscal 2017 was $68.4 million, or $0.79 per diluted share, compared with adjusted net income for the previous year's first quarter of $37.1 million or $0.62 per diluted share.  

First Quarter Segment Results
Healthcare Products revenue grew 8% in the quarter to $281.3 million compared with $261.1 million in the first quarter of fiscal 2016.  Consumable revenue grew 20% and service revenue increased 4% during the quarter.  While capital equipment revenue was essentially flat, backlog growth was strong reflecting growth in orders, particularly in North America.  Healthcare Products operating income was $34.6 million compared with $29.4 million in last year's first quarter.  The increase in profitability was primarily due to increased organic revenue growth, favorable foreign currency exchange rates and the suspension of the Medical Device Excise Tax, somewhat offset by increases in research and development.

Healthcare Specialty Services revenue in the quarter was $157.9 million compared with $68.2 million in the first quarter of fiscal 2016, reflecting the addition of Synergy Health and organic volume growth. Healthcare Specialty Services operating income was $3.3 million compared with $3.9 million in last year's first quarter, primarily due to lower than anticipated revenue and continued investments in anticipation of future growth in Instrument Management Services (IMS).   

Fiscal 2017 first quarter revenue for Applied Sterilization Technologies increased to $116.6 million compared with $53.7 million in the same period last year.  Revenue benefited from the addition of Synergy Health and increased volume from the segment's core medical device Customers.  Segment operating income increased to $39.6 million in the first quarter of fiscal 2017 compared with operating income of $16.5 million in the same period last year, due primarily to the aforementioned revenue growth.

Life Sciences first quarter revenue grew 43% to $81.2 million compared with $56.8 million in the first quarter of fiscal 2016.  Contributing to this growth, consumable revenue grew 62%, service revenue increased 20% and capital equipment revenue grew 43%.  Life Sciences operating income was $24.5 million compared with $13.5 million in the prior year's first quarter, driven by double-digit organic revenue growth and recent acquisitions.

Cash Flow
Net cash provided by operations for the first three months of fiscal 2017 was $80.3 million, compared with $41.2 million in fiscal 2016.  Free cash flow (see Non-GAAP Financial Measures) for the first three months of fiscal 2017 was $49.5 million compared with $17.7 million in the prior year.  The increase in cash flow is primarily due to the higher net income.

Dividend and Repurchase Announcement
STERIS's Board of Directors has authorized a $0.03 increase in its quarterly interim dividend to $0.28 per share.  The dividend is payable September 27, 2016 to shareholders of record at the close of business on August 30, 2016. 

STERIS's Board of Directors also has authorized the purchase of up to $300 million of the Company's ordinary shares.  The Company may enter into share repurchase contracts until August 2, 2021.  Shares may be repurchased from time to time through open market transactions, including 10b5-1 plans.  The repurchase program may be suspended or discontinued at any time. 

Outlook
The Company now anticipates total revenue growth in the range of 22-23% for fiscal 2017, including approximately 6% organic revenue growth.  This compares to prior expectations of 25-26% revenue growth and approximately 7% organic revenue growth.  The change in revenue expectations is primarily driven by the sale of the UK linen business, changes in foreign currency exchange rates, and the previously discussed lower IMS growth, partially offset by the acquisition of Medisafe Holdings Ltd.  The combined impact of these factors is anticipated to be approximately $0.05 dilutive to adjusted earnings per diluted share, and is expected to be absorbed in the Company's previously provided range of $3.85 - $4.00.

The Company has based its outlook on nine-month forward rates as of June 30, 2016.  The Company continues to expect $15 million in cost synergies as a result of the combination with Synergy and an adjusted effective tax rate of approximately 25% in fiscal 2017.  The Company also continues to expect fiscal 2017 free cash flow to be approximately $250 million, which includes the spending of approximately $50 million in additional cash expenses related to the integration of Synergy Health and capital expenditures of approximately $190 million.

Conference Call
As previously announced, STERIS management will host a conference call today at 10:00 a.m. Eastern time.  The conference call can be heard live over the Internet at www.steris-ir.com or via phone by dialing 1-800-369-8428 in the United States and Canada, and 1-773-799-3378 internationally, then referencing the password "STERIS".

For those unable to listen to the conference call live, a replay will be available beginning at 12:00 p.m. Eastern time today, either over the Internet at www.steris-ir.com or via phone by calling 1-888-566-0058 in the United States and Canada, and 1-203-369-3035 internationally.

About STERIS

STERIS's mission is to help our Customers create a healthier and safer world by providing innovative healthcare and life science product and service solutions around the globe. For more information, visit www.steris.com.

Investor Contact:

Julie Winter, Director, Investor Relations

Julie_Winter@steris.com

+1 440 392 7245

Media Contact:

Stephen Norton, Senior Director, Corporate Communications

Stephen_Norton@steris.com

+1 440 392 7482

Non-GAAP Financial Measures

Adjusted net income and free cash flow are non-GAAP measures that may be used from time to time and should not be considered replacements for GAAP results.  Non-GAAP financial measures are presented in this release with the intent of providing greater transparency to supplemental financial information used by management and the Board of Directors in their financial analysis and operational decision making. These amounts are disclosed so that the reader has the same financial data that management uses with the belief that it will assist investors and other readers in making comparisons to our historical operating results and analyzing the underlying performance of our operations for the periods presented.  The Company believes that the presentation of these non-GAAP financial measures, when considered along with our GAAP financial measures, provides a more complete understanding of the factors and trends affecting our business than could be obtained absent this disclosure.

Adjusted net income excludes the amortization of intangible assets acquired in business combinations, acquisition-related transaction costs, integration costs related to acquisitions, and certain other unusual or non-recurring items.  STERIS believes this measure is useful because it excludes items that may not be indicative of or are unrelated to our core operating results and provides a baseline for analyzing trends in our underlying businesses.

The Company defines free cash flow as cash flows from operating activities less purchases of property, plant, equipment and intangibles, net capital expenditures, plus proceeds from the sale or property, plant, equipment, and intangibles.  STERIS believes that free cash flow is a useful measure of the Company's ability to fund future principal debt repayments and growth outside of core operations, pay cash dividends, and repurchase ordinary shares.

To measure the percentage organic revenue growth, the Company removes the impact of acquisitions and divestitures that affect the comparability and trends in revenue. To measure the percentage constant currency organic revenue growth, the impact of changes in foreign currency exchange rates and acquisitions and divestitures that affect the comparability and trends in revenue are removed.  The impact of changes in foreign currency exchange rates is calculated by translating current year results at prior year average foreign currency exchange rates.

Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These adjusted financial measures should not be considered in isolation or as a substitute for reported sales growth, gross profit, operating income, net earnings and net earnings per diluted share, the most directly comparable GAAP financial measures. These non-GAAP financial measures are an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures below, provide a more complete understanding of the business. The Company strongly encourage investors and shareholders to review its financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure.

Forward-Looking Statements

The referenced release and conference call may contain statements concerning certain trends, expectations, forecasts, estimates, or other forward-looking information affecting or relating to STERIS or its industry, products or activities that are intended to qualify for the protections afforded "forward-looking statements" under the Private Securities Litigation Reform Act of 1995 and other laws and regulations. Forward-looking statements speak only as to the date the statement is made and may be identified by the use of forward-looking terms such as "may," "will," "expects," "believes," "anticipates," "plans," "estimates," "projects," "targets," "forecasts," "outlook," "impact," "potential," "confidence," "improve," "optimistic," "deliver," "comfortable," "trend", and "seeks," or the negative of such terms or other variations on such terms or comparable terminology. Many important factors could cause actual results to differ materially from those in the forward-looking statements including, without limitation, disruption of production or supplies, changes in market conditions, political events, pending or future claims or litigation, competitive factors, technology advances, actions of regulatory agencies, and changes in laws, government regulations, labeling or product approvals or the application or interpretation thereof. Other risk factors are described in STERIS's securities filings, including Item 1A of STERIS's Annual Report on Form 10-K for the year ended March 31, 2016. Many of these important factors are outside of STERIS's control. No assurances can be provided as to any result or the timing of any outcome regarding matters described in STERIS's securities filings or otherwise with respect to any regulatory action, administrative proceedings, government investigations, litigation, warning letters, cost reductions, business strategies, earnings or revenue trends or future financial results. References to products are summaries only and should not be considered the specific terms of the product clearance or literature. Unless legally required, STERIS does not undertake to update or revise any forward-looking statements even if events make clear that any projected results, express or implied, will not be realized. Other potential risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, (a) STERIS's ability to meet expectations regarding the accounting and tax treatments of the Combination (the "Combination") with STERIS Corporation and Synergy Health plc ("Synergy"), (b) the possibility that the parties may be unable to achieve expected synergies and operating efficiencies in connection with the Combination within the expected time-frames or at all and to successfully integrate the operations of the companies, (c) the integration of the operations of the companies being more difficult, time-consuming or costly than expected, (d) operating costs, customer loss and business disruption (including, without limitation, difficulties in maintaining relationships with employees, customers, clients or suppliers) being greater than expected following the transaction, (e) the retention of certain key employees of Synergy being difficult, (f) changes in tax laws or interpretations that could increase our consolidated tax liabilities, including, changes in tax laws that would result in STERIS being treated as a domestic corporation for United States federal tax purposes, (g) the potential for increased pressure on pricing or costs that leads to erosion of profit margins, (h) the possibility that market demand will not develop for new technologies, products or applications or services, or business initiatives will take longer, cost more or produce lower benefits than anticipated, (i) the possibility that application of or compliance with laws, court rulings, certifications, regulations, regulatory actions, including without limitation those relating to FDA warning notices or letters, government investigations, the outcome of any pending FDA requests, inspections or submissions, or other requirements or standards may delay, limit or prevent new product introductions, affect the production and marketing of existing products or services or otherwise affect STERIS's performance, results, prospects or value, (j) the potential of international unrest, economic downturn or effects of currencies, tax assessments, adjustments or anticipated rates, raw material costs or availability, benefit or retirement plan costs, or other regulatory compliance costs, (k) the possibility of reduced demand, or reductions in the rate of growth in demand, for STERIS's products and services, (l) the possibility that anticipated growth, cost savings, new product acceptance, performance or approvals, or other results may not be achieved, or that transition, labor, competition, timing, execution, regulatory, governmental, or other issues or risks associated with STERIS's businesses, industry or initiatives including, without limitation, those matters described in STERIS's 10-K for the year ended March 31, 2016 and other securities filings, may adversely impact STERIS's performance, results, prospects or value, (m) the impact on STERIS and its operations of the "Brexit vote," (n) the possibility that anticipated financial results or benefits of recent acquisitions, including the Combination, or of STERIS's restructuring efforts, or of recent divestitures will not be realized or will be other than anticipated and (o) the effects of the contractions in credit availability, as well as the ability of STERIS's Customers and suppliers to adequately access the credit markets when needed.