Explanation

The core of this formula is the DATE function, which is used to assemble a proper Excel date value. The DATE function requires valid year, month, and day values, so these are parsed out of the original text string as follows:

  1. The year value is extracted with the RIGHT function:
RIGHT(B5,2)+2000

RIGHT gets the right-most 2 characters from the original value. The number 2000 is added to the result to create a valid year. This number goes into DATE as the year argument.

  1. The month value is extracted with:
MID(B5,4,2)

MID retrieves characters 4-5. The result goes into DATE as the month argument.

  1. The day value is extracted with:
LEFT(B5,2)

LEFT grabs the final 2 characters of the original text value, which goes into DATE as the day argument.

  1. The three values extracted above go into DATE like this:
=DATE(2016,"02","29")

Although month and day are supplied as text, the DATE function automatically converts to numbers and returns a valid date.

Note: the year value 2016 was automatically converted to a number when 2000 was added.

Dealing with extra space

If the original text value contains extra leading or trailing space characters, you can add the TRIM function to remove:

=DATE(RIGHT(TRIM(A1),2)+2000,MID(TRIM(A1),4,2),LEFT(TRIM(A1),2))

Explanation

This formula works for times entered in a particular format as shown below:

00h01m13s
00h01m08s
08h02m59s

Note the text string is always 9 characters long, and each component is 2 digits.

The core of this formula is the TIME function, which assembles a valid time using individual hour, minute, and second components. Since these values are all together in a single text string, the MID function is used to extract each component:

MID(B5,1,2) // extract hour
MID(B5,4,2) // extract minute
MID(B5,7,2) // extract second

The results are fed directly to the TIME function as arguments. The code below shows how the formula is solved in cell F5:

=TIME(MID(B5,1,2),MID(B5,4,2),MID(B5,7,2))
=TIME("00","01","13")
=12:01:13

Notice MID, as a text function, returns text instead of actual numbers. However, the TIME function still works properly, coercing the text values to numbers automatically.