2018 PENTAIR INVESTOR & ANALYST DAY

Transcription

1 2018 PENTAIR INVESTOR & ANALYST DAY James C. Lucas VP, Investor Relations and Treasury

2 Forward-Looking Statements CAUTION CONCERNING FORWARD-LOOKING STATEMENTS THIS PRESENTATION CONTAINS STATEMENTS THAT WE BELIEVE TO BE "FORWARD-LOOKING STATEMENTS" WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT ARE FORWARD-LOOKING STATEMENTS. WITHOUT LIMITATION, ANY STATEMENTS PRECEDED OR FOLLOWED BY OR THAT INCLUDE THE WORDS "TARGETS," "PLANS," "BELIEVES," "EXPECTS," "INTENDS," "WILL," "LIKELY," "MAY," "ANTICIPATES," "ESTIMATES," "PROJECTS," "SHOULD," "WOULD," "POSITIONED," "STRATEGY," "FUTURE" OR WORDS, PHRASES OR TERMS OF SIMILAR SUBSTANCE OR THE NEGATIVE THEREOF, ARE FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO RISKS, UNCERTAINTIES, ASSUMPTIONS AND OTHER FACTORS, SOME OF WHICH ARE BEYOND OUR CONTROL, WHICH COULD CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE EXPRESSED OR IMPLIED BY SUCH FORWARD-LOOKING STATEMENTS. THESE FACTORS INCLUDE THE ABILITY TO SATISFY THE NECESSARY CONDITIONS TO CONSUMMATE THE PLANNED SEPARATION OF OUR WATER BUSINESS AND ELECTRICAL BUSINESS INTO TWO INDEPENDENT, PUBLICLY-TRADED COMPANIES (THE "PROPOSED SEPARATION") ON A TIMELY BASIS OR AT ALL; THE ABILITY TO SUCCESSFULLY SEPARATE THE WATER AND ELECTRICAL BUSINESSES AND REALIZE THE ANTICIPATED BENEFITS FROM THE PROPOSED SEPARATION; ADVERSE EFFECTS ON THE WATER AND ELECTRICAL BUSINESS OPERATIONS OR FINANCIAL RESULTS AND THE MARKET PRICE OF OUR SHARES AS A RESULT OF THE ANNOUNCEMENT OR CONSUMMATION OF THE PROPOSED SEPARATION; UNANTICIPATED TRANSACTION EXPENSES, SUCH AS LITIGATION OR LEGAL SETTLEMENT EXPENSES; FAILURE TO OBTAIN TAX RULINGS OR CHANGES IN TAX LAWS; CHANGES IN CAPITAL MARKET CONDITIONS; THE IMPACT OF THE PROPOSED SEPARATION ON OUR EMPLOYEES, CUSTOMERS AND SUPPLIERS; OVERALL GLOBAL ECONOMIC AND BUSINESS CONDITIONS IMPACTING THE WATER AND ELECTRICAL BUSINESSES; FUTURE OPPORTUNITIES THAT OUR BOARD MAY DETERMINE PRESENT GREATER POTENTIAL TO INCREASE SHAREHOLDER VALUE; THE ABILITY OF THE WATER AND ELECTRICAL BUSINESSES TO OPERATE INDEPENDENTLY FOLLOWING THE PROPOSED SEPARATION; THE ABILITY TO ACHIEVE THE BENEFITS OF OUR RESTRUCTURING PLANS; THE ABILITY TO SUCCESSFULLY IDENTIFY, FINANCE, COMPLETE AND INTEGRATE ACQUISITIONS; COMPETITION AND PRICING PRESSURES IN THE MARKETS WE SERVE; THE STRENGTH OF HOUSING AND RELATED MARKETS; VOLATILITY IN CURRENCY EXCHANGE RATES AND COMMODITY PRICES; INABILITY TO GENERATE SAVINGS FROM EXCELLENCE IN OPERATIONS INITIATIVES CONSISTING OF LEAN ENTERPRISE, SUPPLY MANAGEMENT AND CASH FLOW PRACTICES; INCREASED RISKS ASSOCIATED WITH OPERATING FOREIGN BUSINESSES; THE ABILITY TO DELIVER BACKLOG AND WIN FUTURE PROJECT WORK; FAILURE OF MARKETS TO ACCEPT NEW PRODUCT INTRODUCTIONS AND ENHANCEMENTS; THE IMPACT OF CHANGES IN LAWS AND REGULATIONS, INCLUDING THOSE THAT LIMIT U.S. TAX BENEFITS; THE OUTCOME OF LITIGATION AND GOVERNMENTAL PROCEEDINGS; AND THE ABILITY TO ACHIEVE OUR LONG-TERM STRATEGIC OPERATING GOALS. ADDITIONAL INFORMATION CONCERNING THESE AND OTHER FACTORS IS CONTAINED IN OUR FILINGS WITH THE SEC, INCLUDING OUR QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, ALL FORWARD-LOOKING STATEMENTS SPEAK ONLY AS OF THE DATE OF THIS PRESENTATION. PENTAIR PLC ASSUMES NO OBLIGATION, AND DISCLAIMS ANY OBLIGATION, TO UPDATE THE INFORMATION CONTAINED IN THIS PRESENTATION. THE OFFICER TITLES FOR INDIVIDUAL SPEAKERS SET FORTH IN THIS PRESENTATION ARE THE TITLES SUCH PERSONS ARE EXPECTED TO HAVE AT PENTAIR PLC AFTER THE COMPLETION OF THE PROPOSED SEPARATION Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 2

3 Key Definitions Except as Otherwise Noted, All References to Pentair and All Amounts Included Herein Represent the Pentair Water Business Excluding the Pentair Electrical Business Except as Otherwise Noted All References to 2017 and 2016 Represent Our Results from Continuing Operations for the Period Indicated, Presented on an Adjusted Basis "Core Sales" Refers to GAAP Revenue from Continuing Operations Excluding (1) the Impact of Currency Translation and (2) the Impact of Revenue from Acquired Businesses Recorded Prior to the First Anniversary of the Acquisition Less the Amount of Sales Attributable to Divested Product Lines Not Considered Discontinued Operations "Adjusted Core Sales" Represents "Core Sales" Excluding the Impact of 1 Large Dairy Job Segment Income Represents Equity Income of Unconsolidated Subsidiaries and Operating Income from Continuing Operations Exclusive of Non-Cash Intangible Amortization, Certain Acquisition Related Expenses, Costs of Restructuring Activities, "Mark-to-Market" Gain (Loss) for Pension and Other Post-Retirement Plans, Impairments, and Other Unusual Non-Operating Items Return on Sales ("ROS") Equals Segment Income Divided by Sales See Appendix for GAAP to Non-GAAP Reconciliations 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 3

4 Today s Agenda Time Speaker Topic 8:05a Randy Hogan Welcome 8:10a John Stauch The New Pentair 8:40a Karl Frykman Prioritizing Our Opportunities 9:00a John Jacko Building Out Our Growth Capabilities 9:20a Dr. Phil Rolchigo Accelerating Our Investments in Technology 9:40a Break 10:00a Mark Borin Financial Strength & Disciplined Capital Allocation 10:30a Q&A 11:30a Conclude 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 4

5 CREATING TWO FOCUSED GROWTH COMPANIES Randall J. Hogan Chairman and CEO

6 Separation into Two Publicly-Traded Companies WATER ELECTRICAL SUSTAINABILITY Maximizing the Use of the Resources People Rely on Most PROTECTION Protecting Critical Processes, People, and the Environment A Leading Global Water Treatment Company Focused on Smart, Sustainable Water Solutions 2017 Revenue: ~$2.8B 2017 ROS: ~17% A High-Performance Electrical Company Focused on Connecting and Protecting Customers with Inventive Electrical Solutions 2017 Revenue: ~$2.1B 2017 ROS: ~19% Industry-Leading, Pure-Play Companies; Strong Brands and Financial Profiles 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 6

7 Rationale of Separation RATIONALE STRATEGIC FOCUS Improved Clarity into Performance and Growth Opportunities FINANCIAL STRENGTH Supports Plan to be Successful, Profitable, and Sustainable CAPITAL ALLOCATION FLEXIBILITY Unique Strategies to Deliver Growth for Each FOUNDATION PIMS Pentair s Business System CAPITAL STRUCTURE Expect Strong Balance Sheet and Financial Positioning MANAGEMENT TEAM Mix of Current & New Executives and Board Members to Lead The Next Step in the Evolution of Pentair 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 7

8 THE NEW PENTAIR: A GROWTH COMPANY John L. Stauch Future President & CEO

9 What You Will Hear Today We Have a Great Opportunity We are Prioritizing Our Opportunities We are Building Out Our Growth Capabilities We are Accelerating Our Investments in Technology We Plan to be Disciplined with Our Capital We Will be Focused on Delivering for Customers and Creating Value for Shareholders 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 9

10 A Focused Portfolio Driven by Strong Secular Trends Accelerating Urbanization 2017 Revenue: $2.8B Economic Power Shifts Industrial Commercial Residential Climate Change & Resource Scarcity Demographic Shifts ~80% is Residential & Commercial Prioritization and Investment to Optimize Our Opportunities 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 10

11 The New Pentair OUR PURPOSE: We believe that the health of our world depends on reliable access to clean water. OUR MISSION: Pentair delivers smart, sustainable solutions that empower our customers to make the most of life s essential resource. OUR BRAND PROMISE: Smart, sustainable water solutions. For life. Our Impact is Significant 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 11

12 Our Priorities Our Vision To be the Leading Residential & Commercial Water Treatment Company Strategic Focus Areas Advance Our Growth in Pool Accelerate Residential & Commercial Filtration Expand in China & Southeast Asia Pentair Integrated Management System (PIMS) Commercial Excellence Talent Management Lean Enterprise Prioritizing Areas of Investment and the Way in Which We Deliver on Them 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 12

13 Uniquely Positioned to Address Water Opportunities ~$3B * A Global Leader in Residential & Commercial Water Treatment *Represents mid-point of 2018 outlook 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 13

14 Uniquely Positioned to Address Water Opportunities ~$1B * A Global Leader in Aquatic Systems Innovative Product Offering Technology Leadership Dealer Intimacy Aftermarket Support *Represents mid-point of 2018 outlook 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 14

15 Uniquely Positioned to Address Water Opportunities ~$1B A Global Leader in Filtration Solutions * Comprehensive Technology Offering Solid Distribution Capabilities Strong Technical Support and Service Respected Brands *Represents mid-point of 2018 outlook 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 15

16 Uniquely Positioned to Address Water Opportunities ~$900M * A Global Leader in Flow Technologies Well-Known Brands Complete Solutions Certified Equipment Application Expertise *Represents mid-point of 2018 outlook 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 16

17 Our Strategic Priorities Advance Growth in Pool Accelerate Residential & Commercial Filtration Expand in China & Southeast Asia Focused Growth Priorities 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 17

18 Continuing to Evolve Growth is a Mindset, a Culture, and a Process Mega Trends Support Global Growth We Are Focused on Differentiated Growth to Deliver Top-Tier Performance An Enterprise Led Growth Process and Organization is Expected to Ensure Consistency and Best Practices A Focused and Prioritized Set of Actions Funded and Resourced as an Enterprise are Designed to Allow Us to Accelerate Growth Technology Innovation and Business Model Innovation are BOTH Required for Sustained and Consistent Growth Evolving Our Growth Toolkit to Complement Lean 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 18

19 Our New Operating Model Individual P&L Driven Individual P&L Driven Team Driven (Some Shared Services) Enterprise Model SBU Model SBU Model + Shared Services Drives Our Strategy and Provides Focus 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 19

20 Building a Growth Organization SBU Leader Focus on Priorities Sales Agile Execution Vertical Market Leader Customer Advocate Marketing Organization Value Proposition Product Management Differentiation Technology Innovation Support Functions Customer Support 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 20

21 An Excellent Start to the New Pentair Growth Capability Commercial Excellence Technology Digital Transformation Culture and People Functional Support Depth Strong Pentair Culture Building Growth Bench Our Opportunity!! Productivity and Cash Quality & Delivery Proven Margin Capability Reliable Cash Flow We Have a Great Foundation Building Out Our Growth Capabilities 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 21

22 Defining Commercial Excellence A Foundation for Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 22

23 Residential Value Chain Consumer Professional Trade Dealer Traditional Channel Partner Install Sell Distribute Dealers (Affiliated, Specialists) Technical Specialist (Plumber, Handyman) MRO Wholesalers Specialty Distributors End User Seeking References & Brand Price Aware More Informed Today Most are Independent Affiliate with Best Product Need Reliability Need Quality Retailers Plumbing Wholesalers Important Partners Satisfy Demand Handle Volume Fluctuations Provide Credit Make Decisions on Brand, Product, and Price Seeking Differentiation and Consumer Pull Under Pressure; Looking for Exclusive Brands and True Partners We are Focused on All Areas of the Value Chain 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 23

24 Our Digital Opportunity A Three Step Process Digitally Engage Future Customers Through Directly Selling Them what They Want Collect and Utilize Data to Analyze what Customers Need Use Digital Marketing to Connect Consumers with Our Professional Dealers Using Consumer Direct Sales to FUND and FIND Future Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 24

25 Accelerating Our Strategic Initiatives Technology Innovation Centers Fluid Dynamic Technologies (Hydraulics, CFD, FEA, etc.) Water and Fluid Treatment Technologies SMART Products and Connected Solutions ADVANCE our Current Capabilities ALIGN to Strategic Focus BUILD the PNR Ecosystem Empowering Technology Innovation Centers to Drive Differentiation 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 25

26 The New Pentair Strategy Summary Our Vision: To be the Leading Residential & Commercial Water Treatment Company Flow Technologies China / SE Asia Other Developing Sales by Segment Aquatic Systems Filtration Solutions Sales by Vertical Industrial Commercial Residential Sales by Geography Other Developed United States ~$3B of Revenue * ~18% ROS * Targeting Free Cash Flow = Adjusted Net Income Focused Strategies: Advance Pool Growth Accelerate Residential and Commercial Filtration Expand in China & Southeast Asia Innovation A Pure Play Water Company *Represents mid-point of 2018 outlook Accelerated by: Digital Transformation Grounded in: Win Right Values and Utilizing PIMS for Sustained & Consistent Performance Value Creation Through: Revenue Growth Base Core Growth Differentiated Growth Bolt-on and Tuck-in M&A Sustained Performance Sustained Operating Margin Expansion Free Cash Flow = Adjusted Net Income ROIC Acceleration Smart Capital Allocation Remain Investment Grade Fuel Core Growth Investments Competitive Dividend Yield M&A / Intelligent Buy Backs A Focused Residential & Commercial Pure-Play Water Treatment Company 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 26

27 PRIORITIZING OUR OPPORTUNITIES Karl Frykman Future Chief Operating Officer

28 What You ll Hear Today Keep Our Core Business Delivering Take Advantage of Healthy Residential & Commercial Opportunities Drive Growth Through Customer Intimacy Deliver Price and Productivity to Mitigate Inflation Accelerating Growth Initiatives Advance Our Growth in Pool Accelerate Residential & Commercial Filtration Expand in China & Southeast Asia Strengthening the Core and Prioritizing Investments 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 28

29 A Strong Foundation We Have a GREAT Set of Businesses We Have a Solid PIMS Foundation Our Productivity and Cash Disciplines are Well-Developed Our Growth Capabilities are Developing Well Established in Lean Growth Capabilities Being Embedded 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 29

30 Aquatic Systems Revenue Key Attributes Applications $822M $878M $940M Innovative Product Offering Technology Leadership Dealer Intimacy Aftermarket Support ~85% Replacement / Aftermarket ROS Revenue Composition 22.4% 24.6% 26.9% Commercial By Vertical Other Developed By Geography Other Developing Residential United States A Global Leader in Aquatic Systems 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 30

31 Optimization and Complexity Reduction Underway Websites Product Line Exits Distribution Centers to 1 Built on a Contemporary Platform Over 20% Reduction in Product Lines 25% Reduction in DC s Brands -15 Plants -8 Accounting Close Locations -5 ONE Pentair Masterbrand Significant Complexity Reduced 20% Reduction in Plants >25% Reduction in Accounting Locations Significant Reduction in Complexity Drives Margin Expansion and Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 31

32 Further Opportunity for Margin Expansion Filtration Solutions ROS 14.2% 15.5% 14.1% Focusing the Portfolio Flow Technologies ROS 15.2% 15.3% 14.5% Eliminating Back Office Complexity Rigorously Apply the PIMS Toolkit Focus on Profitable Growth and Higher Value Products Good Progress on Margins Room for Further Improvement 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 32

33 Advance Growth in Pool Pentair s core remains strong amidst key consolidation and emerging channel shifts upside concentrated in products sold through current pro channel requiring a nearterm focus on products and the end consumer Still Room for Growth in an Attractive Space 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 33

34 Expanding Aftermarket Products In Ground Pools by Pump Types (5M) Variable Speed Single Speed Increase Sales of Variable Speed Pumps Rationale for Selection Low upfront investment, high potential Provides greater access to end-consumer Builds on existing customer base & quick wins 2022 Goals 50% penetration of variable speed pumps in existing pools Consistent consumer demand for sustainable, exciting products for pool owners Connected products for enjoyable pool ownership Opportunities with Existing and New Products 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 34

35 Opportunities Remain in Automation Segment Rationale for Selection High growth segment with demand from existing pool owners Creates greater pull-through for other Pentair products Drives consumer awareness and brand equity Fastest Growing Segment in Pool Space 2022 Goals 20% penetration of existing nonconnected pools Pentair system of connected pools with valuable information for pool owners Platform for additional product sales 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 35

36 Aquatic Systems Summary Initiatives ~$900M 2017 Base 2022 Goal Accelerate Growth to Drive Content on Pool Pad 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 36

37 Accelerate Residential & Commercial Filtration Pentair s core of components is strong and stable; foodservice is a leader expanding systems will open new paths requiring a near-term focus on portfolio and channels Loyal Network is Key for Residential & Commercial Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 37

38 Building a Loyal Dealer Network US Water Treatment Dealers Branded / Affiliated Independent Rationale for Selection Good margins, we have the right products and solutions Ability to develop strong systems brand Sufficient number of dealers to add to our network of partners We can drive leads to our dealers and train them We can manage a dealer network 2022 Goals Loyal network of 700+ water dealers 40% attachment rate of drinking water systems to softening sales Consistent consumer demand creation for loyal dealers Sell Through and Support a Scaled Network of Active Dealers 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 38

39 Residential & Commercial Water Filtration Summary ~$1B Filtration Solutions Initiatives ~$600M Water Filtration 2017 Base 2022 Goal Expanding Sales Through Our Loyal Dealer Network 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 39

40 Expand in China & Southeast Asia Pentair enjoys good customer advocacy with low penetration but we will need to change to capture sales in this high growth segment requiring a nearterm focus on customers and product portfolio An Exciting Growth Opportunity 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 40

41 China & Southeast Asia Expansion Summary Base Growth and Initiatives ~$160M 2017 Base 2022 Goal Focused Investment Drives Faster Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 41

42 Summary Keep Our Core Business Delivering Take Advantage of Healthy Residential & Commercial Opportunities Drive Growth Through Customer Intimacy Deliver Price and Productivity to Mitigate Inflation Accelerating Growth Initiatives Advance Our Growth in Pool Accelerate Residential & Commercial Filtration Expand in China & Southeast Asia Focused and Prioritizing Resources to the Critical Few Activities 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 42

43 BUILDING OUT OUR GROWTH CAPABILITIES John Jacko Future Chief Growth Officer

44 What You ll Hear Today 1 Commercial Excellence 2 Customer Led Product Development Define Customers Needs Renew Our Offerings 3 New Innovative Business Models Redefine The Competition Reinvent Business Model Compete on Differentiators; Prioritize Revenue 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 44

45 Building Our Growth Engine Defining Sales Excellence Marketing Capability Product Management Pentair Integrated Management System Building Operationalizing Competency Assessment SBU Impact Training Structure Imbedded Processes Team Review & Rhythm New Competencies Integrated into PIMS 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 45

46 Defining Commercial Excellence As a Foundation for Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 46

47 Building Our Commercial Excellence Capabilities Assess Commercial Competencies Talent Assessment Organizational Needs Quick Win Drivers to Enable Segments Launch New Programs Market Insights Strategic Pricing Product Management To Enhance Performance 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 47

48 Operationalizing Our Commercial Capabilities Creates a Sustainable Growth Organization 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 48

49 Building Out Our Capabilities Beyond Commercial Excellence Defined Strategic Pricing Training Initiated Structure New Platforms for Digital Execution Sales Training Single Instance Salesforce Digital Marketing Tools Launched B2B Customer Insight Pilot / Training Residential & Commercial Teams Launched Sales Training Marketing Cloud New Processes Embedded in Tools Continued Training and Reinforcement Sales Training Commercial Excellence is a Journey 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 49

50 A Focus on Differentiated Growth Key Area of Focus Annual Revenue Growth Rate Differentiated Growth GDP Growth Occurs When We do a Better Job than Competitors in Meeting Customer Needs We Rise and Fall with the Industry Assuming We have Equivalent Offering Differentiated Growth and Further Penetration in Our Core 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 50

51 Customer Led Growth Competitor A?% Competitive Assumptions: Similar Talent Competitor B?% Segment #1 Similar Business Acumen Similar Technologies Pentair Competitor C?%?% x% Growth Differentiated Growth Will Be Customer Driven: Satisfying Unmet Needs Competitor D?% Innovative Breakthroughs Differentiated Business Models Customer Driven Innovation and Differentiation is Key 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 51

52 Strengthening the Front End of Our Process Discover Develop Deploy Customer Need Supplier Solution Develop Product Test/ Validate Many Companies Check Customer Needs After Launch Focusing on Discover Will Significantly Increase Customer Success 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 52

53 Expanding Residential Applications & Offerings % Total Revenue Key Customer Needs 1) Water Quality & Safety Global Market Size ~$22B Improved drinking water aesthetics Mineral removal to stop spotting & staining Heated, chilled, and carbonated water Disinfection and sanitization Heavy metals and organic chemical removal ) Water Efficiency & Availability Water supply & pressure boost systems Rain water capture and reuse High efficiency irrigation systems 3) Energy Efficiency & Asset Protection Mineral removal to reduce scaling High efficiency pool heating, lighting, and pumping Leak detection and flood control High efficiency water heating Filtration & Purification, Softening, Heating, Cooling, Transporting, and Controlling Extensive Breadth of Solutions Addressing Critical Consumer Water Needs 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 53

54 Residential Value Chain Consumer Professional Trade Dealer Traditional Channel Partner Install Sell Distribute Dealers (Affiliated, Specialists) Technical Specialist (Plumber, Handyman) MRO Wholesalers Specialty Distributors End User Seeking References and Brand Price Aware More Informed Today Most are Independent Affiliate with Best Product Need Reliability Need Quality Retailers Plumbing Wholesalers Important Partners Satisfy Demand Handle Volume Fluctuations Provide Credit Make Decisions on Brand, Product, and Price Seeking Differentiation and Consumer Pull Under Pressure; Looking for Exclusive Brands and True Partners We are Focused on All Areas of the Value Chain 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 54

55 Expanding Commercial Applications & Offerings % Total Revenue Global Market Size ~$11B 3 Key Customer Needs 1) Water Quality & Safety Improved drinking water aesthetics Mineral removal to stop spotting Heated, chilled, and carbonated water Water purification ) Water Efficiency & Availability Water supply and pressure boost systems Rain water capture and reuse Wastewater treatment and disposal High efficiency irrigation systems ) Energy Efficiency & Asset Protection Mineral removal to stop scaling Fire suppression High efficiency pool systems High efficiency water heating & cooling Filtration & Purification, Softening, Heating, Cooling, Transporting, and Controlling Broad Offering, Large Installed Base, Strong Quality, and Reliability 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 55

56 Commercial Food Service Applications & Offerings % Total Revenue Key Customer Needs Global Market Size ~$8B ) Water Quality & Safety Improved drinking water aesthetics Heated, chilled, and carbonated water Designer water Mineral removal to stop spotting Disinfection & sanitization Heavy metals and organic chemical removal ) Beverage Dispense Efficiency Syrup dispensing solutions Alcoholic beverage dispensing solutions 3) Energy Efficiency & Asset Protection Mineral removal to reduce scaling coffee/espresso machines combi ovens dishwashers Filtration & Purification, Softening, Heating, Cooling, Transporting, and Controlling Strong Brands Addressing Critical Water Related Issues 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 56

57 A Customer Focus Pentair Distribution Dealer Relationships - Increase access to end users Data Driven - Better insights to product needs Digital Commerce - Where to buy, inventory locations Loyalty - Installation and technical assistance End User Is Not a Disintermediation Play 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 57

58 Digital Journey - Customer Digital Process Changing Buyers Demand to be Served When and How They Prefer MY WAY Recent B2B Study: More Transparent Buying Process Unified Customer Experience MY WAY MY W MY WAY Personalized Offers, Configuration, and Pricing Frictionless & Dynamic Experience Digital Education and Active Buying are Playing Significant Roles B2B Customers are Expecting a B2C Customer Experience Accelerating the Digital Experience 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 58

59 Brand Supports Web as a One Stop Experience Strong unaided awareness of the brand in select areas of the business Consolidating 35 different websites to Pentair.com Built out brand architecture for all of the business Build Pentair brand while maintaining legacy Separation Gives Us a Unique Opportunity 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 59

60 Upgrade of Our Digital Ecosystem IoT Enabled Products & Systems Customers Experience Management Relationship Management Business Intelligence To Deliver a New Customer Experience, Intimacy, and Loyalty 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 60

61 Our Digital Customer Value Chain Customer Value Shared Value Pentair Value Ease of Doing Business Configure, Price, Quote Personalized Experience Technical Support Testimonials Interactive Content Suggestions for Optimal Products Product Ratings Purchase History Dealer/Channel Portals Fits With ; Also Bought Locators IoT Integration Marketing to End Users Permission Based Access to Consumer Data Brand Equity Lead Generation Breadth of Product Platforms Learn, Find, Solve: A Simplified Experience 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 61

62 Our Digital Transformation Tied to Smart Products IoT Enabled Products & Systems Pentair Distribution Dealer End User Improved value chain productivity Improved customer loyalty & satisfaction Improved POS and customer data Enhanced end-user insights Improved recurring product revenue New service model opportunities Align our goals with our end users as IoT progresses Improve the Customer Experience and Drive Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 62

63 ACCELERATING OUR INVESTMENTS IN TECHNOLOGY Dr. Phil Rolchigo Future Chief Technology Officer

64 Building Our Technology Growth Muscles Process: Building a more agile process to meet consumer oriented persona Talent: Functionalizing across enterprise Aligning to strategic initiatives Pentair Integrated Management System Technology Focusing on Residential & Commercial opportunities Strongly Positioned to Deliver Differentiated Innovations 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 64

65 Executing Our Strategic Initiatives Advance Growth in Pool Accelerate Residential & Commercial Filtration Expand in China & Southeast Asia Clear Focus to Direct Investments to Deliver Differentiated Innovation 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 65

66 Advance Growth in Pool Intelliflo VS Pumps Hi Efficiency & Hybrid Heater Illumavision Intellicenter Continued Innovations Driving Growth in an Attractive Space 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 66

67 Accelerate Residential & Commercial Filtration High Efficiency Whole Home Water Softening, Lead, and Iron Removal Systems High Efficiency Point of Use Residential & Commercial RO Systems Growing Opportunity in Whole Home and Point of Use Water Filtration 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 67

68 Expand in China & Southeast Asia Today s POU Under the Sink Designs Reverse Osmosis & Disinfection Systems Present a Significant Growth Opportunity A Significant Opportunity with Great Growth Dynamics 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 68

69 Executing Our Strategic Initiatives Advance Growth in Pool Accelerate Residential & Commercial Filtration + Emerging Adjacent Technologies Expand in China & Southeast Asia Functionalized Materials Nanotechnologies Additive Manufacturing Micro-electronics Wireless Communications IoT & Big Data Solutions Advance our Products and Reinvent Offerings in High Growth Categories We Have the Technology Edge to Drive Differentiation 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 69

70 Accelerating Our Strategic Initiatives Technology Innovation Centers Fluid Dynamic Technologies (Hydraulics, CFD, FEA, etc.) Water & Fluid Treatment Technologies SMART Products & Connected Solutions Strong COE Exists Continue Advancing Strong Capabilities Exist Align To Strategic Focus Align & Build Capabilities Build the PNR Ecosystem ALIGNING TALENT & TECHNOLOGY TO STRATEGIC INITIATIVES The right capabilities, partnerships, and organizational structure Empowering Technology Innovation Centers to Drive Differentiation 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 70

71 New Products Aligned to Consumer Needs Consumer VOC Make My Water. Safe... Taste great... Healthy Premium Designer Make My Equipment. Easy to Install... Easy to Service... Cool & Informative Smart & Connected Translating VOC to Build Technology and Product Roadmaps 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 71

72 Advance Growth in Pool Building on Our Legacy of Innovation to Re-invent Other High Growth Categories Significant Opportunities to Innovate in Filtration, Sanitization, and Controls 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 72

73 Accelerate Residential & Commercial Filtration Re-establishing Our Legacy of Innovation in Water Treatment Solutions IoT Enabled High Flow Whole Home & POU Solutions Disinfection & Sensing Designer Water Significant Opportunities to Innovate in Filtration, Disinfection, and Controls 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 73

74 Expand in China & Southeast Asia Creating Region Specific Consumer Led Designs Today s POU Under the Sink Designs Next Generation Counter Top Designs Utilizing Core Technologies with Agile Differentiation 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 74

75 Change is Necessary to Achieve Our Vision EMERGENCE OF THE INTERNET IN EVERYTHING WE DO 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 75

76 The Pentair IoT Product Ecosystem IoT Enabled Products & Systems Pentair Distribution Dealer End User Customer Value Awareness & education on water related issues Mobile access to their water related products Optimized maintenance & cost of ownership Enhanced safety & reliability Enhanced peace of mind Technical support Personalized experience Analytics to optimize product performance & quality Suggestions for new products Access to product ratings Predictive maintenance services e-commerce Shared Value Increased end user touch points Improved brand awareness & customer loyalty Improved end user intimacy Pentair Value Access to end user data Access to product data Increase pull-through of other Pentair products Increase recurring product sales New service model opportunities Using the Pentair IoT Ecosystem to Enhance the Customer Experience 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 76

77 The Pentair Residential IoT Ecosystem Pentair IoT Ecosystem Pentair IoT Cloud Gateway Connect to Other SMART Home IoT Platforms Monitoring, Controlling, and Servicing Our Entire Suite of Residential Products 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 77

78 Executing on Our Strategic Initiatives Advance Growth in Pool Accelerate Residential & Commercial Filtration + Adjacent Emerging Technologies Expand in China & Southeast Asia Functionalized Materials Nanotechnologies Additive Manufacturing Micro-electronics Wireless Communications IoT & Big Data Solutions Advancing Our Products & Reinventing Categories Our Technology Edge and Breadth of Products are Core to Differentiated Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 78

79 FINANCIAL STRENGTH & DISCIPLINED CAPITAL ALLOCATION Mark C. Borin Future Chief Financial Officer

80 What You Will Hear Today Performance History Accelerating Revenue and Income Growth Strong Free Cash Flow Disciplined Capital Allocation Solid Foundation Fuels Future Growth 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 80

81 Pentair Overview Revenue Segment Income $2.81B $2.78B $2.85B ~$2.95B ~3-5% $409M $438M $493M ~$525M ~40bps ROS 14.6% 15.8% 17.3% Outlook Outlook Adjusted EPS Executive Summary $1.94 ~$ $2.30 ~16% Outlook Interest: $48M in 2017, ~$20M in 2018 Tax Rate: 20% in 2017, ~18% in 2018 Share Count: ~183M in 2017 and 2018 Sales Expected to be up ~3-5% on ~2-4% Core Growth ROS Expected to be up ~40 bps, Inclusive of Incremental ~$25M Growth Investment Targeting Free Cash Flow = Adj. Net Income Interest and Tax Rate Tailwinds for 2018 Expecting Solid Top Line and Bottom Line Growth in Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 81

82 Aquatic Systems Revenue Key Attributes Applications $822M $878M $940M Innovative Product Offering Technology Leadership Dealer Intimacy Aftermarket Support ~85% Replacement / Aftermarket ROS Revenue Composition 22.4% 24.6% 26.9% Commercial By Vertical Other Developed By Geography Other Developing Residential United States A Global Leader in Aquatic Systems 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 82

83 Filtration Solutions Revenue Key Attributes Applications $1,018M $976M $991M Comprehensive Technology Offering Solid Distribution Capabilities Strong Technical Support and Service Respected Brands ~50% Replacement / Aftermarket ROS Revenue Composition By Vertical By Geography 15.5% China/SEA 14.2% 14.1% Industrial Residential Commercial Other Developing Other Developed United States A Global Leader in Filtration Solutions 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 83

84 Flow Technologies Revenue Key Attributes Applications $969M $923M $914M Well-Known Brands Complete Solutions Certified Equipment Application Expertise ~75% Replacement / Aftermarket ROS Revenue Composition By Vertical By Geography 14.5% 15.2% 15.3% Other Developing China/SEA Industrial Commercial Residential Other Developed United States A Global Leader in Flow Technologies 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 84

85 2017 Revenue Performance and 2018 Outlook 2017A 2018 Outlook $2.78B $22M $21M $9M $15M $2.85B 2% YOY $2.85B ~$60M ~$25M ~$30M ~$2.95B ~3-5% YOY ~1 pt ~1 pt ~0 pts ~0 pts 2 pts ~2 pts ~1 pt ~1 pt 4 pts 2016 Volume Price Acq/ Large Jobs FX Volume Price FX 2018 Summary Adjusted Core Sales Up 2% Aquatic Systems Up 7% Filtration Solutions Flat Flow Technologies Down 1% Summary Core Sales Up ~2-4% Aquatic Systems Up ~4-6% Filtration Solutions Up ~2-4% Flow Technologies Up ~0-2% Focused Initiatives Drive Differentiated Growth in Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 85

86 2017 Segment Income Performance and 2018 Outlook 2017A 2018 Outlook $438M ROS 15.8% 2016 $22M $1M Growth/ Price/Acq. FX ($34M) Summary $66M $493M 13% YOY Inflation Prod $493M ~$55M 2017 Growth/ Price ~$2M FX (~$40M) Net of ~$25M Growth Investment ROS Without Investment - ~18.5% YoY Without Investment - ~12% ROS ROS.4% (.1%) (1.2%) 2.4% 17.3% 17.3% 1.4% (.1%) (1.4%) 0.5% Summary ~$15M ~$525M ~6% YOY ROS ~17.7% Inflation Prod Income Up 13%, ROS Up 150 bps ~$10M Headwind from Large Projects 1% of Net Material Inflation ROS Benefit from >$35M of Net Cost Out Income Up ~6%, ROS Up ~40 bps ~$25M Investment In Growth Investments ~1% of Net Material Inflation ~1% of Net Productivity Reinvesting in Growth While Delivering Margin Expansion 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 86

87 2018 Adjusted EPS and Free Cash Flow Outlook ADJUSTED EPS FREE CASH FLOW $1.94 ~$0.14 ~$0.12 ~$0.05 ~$2.25 ~$414M ~$45M (~$45M) ~$0M - Restructuring - Taxes + Working Capital ~$414M 2017 Adj. EPS Segment Income ~7% ~6% ~3% ~16% Interest Tax Rate 2018 Adj. EPS Outlook* Summary Expect ~$20M of Interest in 2018 Dependent on Final Capital Structure Effective Tax Rate Improves to ~18% Down 2 pts from 2017 Rate Shares of ~183 Million *Represents mid-point of $2.20 -$2.30 guidance 2018 Adjusted Net Income Depreciation Capex Summary Business Is Not Capital Intensive Work Cap/ Other Working Capital Opportunities to Offset Restructuring and Timing of Cash Taxes Target Free Cash Flow to Equal Adjusted Net Income 2018 Free Cash Flow Expecting to Deliver Strong Adjusted EPS and Free Cash Flow 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 87

88 Long-Term Revenue Goals Strategic M&A 3 Disciplined Strategic Bolt-on and Tuck-in M&A Differentiated Growth 2 Invest in Differentiated Growth through Technology and Business Model Innovation ~$2.85B GDP 1 Focus on Core Business and Verticals that Grow Base 2017 Revenue 2022 GDP + Differentiated Growth + M&A = Top Tier Growth Performance 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 88

89 Full Year 2018 Pentair Outlook FX Sales Benefit of ~1% Aquatic Systems ROS Inclusive of Growth Investments Tax Rate Benefit of ~2% from Tax Reform Filtration Solutions KEY CONSIDERATIONS Flow Technologies Expecting Top Line to Improve and Further Margin Expansion Pentair Core Sales Up ~4-6% Up ~2-4% Up ~0-2% Up ~2-4% Sales ~$0.98B ~$1.05B ~$0.92B ~$2.95B ROS Up ~40bps Up ~60bps Up ~30bps Up ~40bps Corporate Expense Interest Expense ~$55M ~$20M Tax Rate ~18% Adjusted EPS ~$2.20-$2.30 Shares ~183M Capital Expenditures ~$45M Total D&A of ~$85M + ~$15M of Non-Cash Stock Compensation 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 89

90 Capital Allocation Priorities Maintain Investment Grade Rating Invest in Organic Growth Competitive Dividend Strategic Bolt-on and Tuck-in M&A or Intelligent Share Buyback Disciplined Use of Our Precious Capital 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 90

91 Summary Accelerating Core Sales Growth Top Tier TSR Sustained Margin Expansion Strong Free Cash Flow Disciplined Capital Allocation Pulling All Levers to Deliver Shareholder Value 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 91

92 THE NEW PENTAIR: A GROWTH COMPANY John L. Stauch Future President & CEO

93 The New Pentair Strategy Summary Our Vision: To be the Leading Residential & Commercial Water Treatment Company Flow Technologies China / SE Asia Other Developing Sales by Segment Aquatic Systems Filtration Solutions Sales by Vertical Industrial Commercial Residential Sales by Geography Other Developed United States ~$3B of Revenue * ~18% ROS * Targeting Free Cash Flow = Adjusted Net Income Focused Strategies: Advance Pool Growth Accelerate Residential and Commercial Filtration Expand in China & Southeast Asia Innovation A Pure Play Water Company *Represents mid-point of 2018 outlook Accelerated by: Digital Transformation Grounded in: Win Right Values and Utilizing PIMS for Sustained & Consistent Performance Value Creation Through: Revenue Growth Base Core Growth Differentiated Growth Bolt-on and Tuck-in M&A Sustained Performance Sustained Operating Margin Expansion Free Cash Flow = Adjusted Net Income ROIC Acceleration Smart Capital Allocation Remain Investment Grade Fuel Core Growth Investments Competitive Dividend Yield M&A / Intelligent Buy Backs A Focused Residential & Commercial Pure-Play Water Treatment Company 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 93

94 Summary We are a Pure Play Water Company with a Portfolio of Industry-Leading Brands and Strong Secular Trends We are Driven by the Pentair Integrated Management System and have a Proven and Capable Management Team We have a Large and Installed Base to Serve We have a Strong Capital Structure, Robust FCF Generation, and Plan to be Disciplined with Our Capital Strong Fundamentals and Attractive Opportunities Ahead 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 94

95 SMART, SUSTAINABLE WATER SOLUTIONS. FOR LIFE Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 95

96 Today s Presenters Randall J. Hogan, Chairman and Chief Executive Officer Randall J. Hogan currently serves as Pentair s Chairman and Chief Executive Officer and upon the separation, he will serve as Chairman of nvent. Hogan was named Pentair s Chief Executive Officer in 2001 and was appointed Chairman in He first joined Pentair in 1998 as Executive Vice President of the Enclosures Group. Prior to Pentair, Hogan was President of United Technologies Carrier Transicold Division. He also held leadership roles at the Pratt & Whitney division of United Technologies, General Electric, and McKinsey & Company. Hogan serves as a Director of Medtronic plc where he is also a member of the Audit and Finance Committees. Hogan holds an MBA from the University of Texas at Austin and a Bachelor of Science degree in Civil Engineering from the Massachusetts Institute of Technology. John L. Stauch, EVP and Chief Financial Officer John Stauch currently serves as Executive Vice President and Chief Financial Officer of Pentair and upon the separation, he will serve as Chief Executive Officer of Pentair. Prior to joining Pentair in 2007, Stauch served as Chief Financial Officer of the Automation and Control Systems unit of Honeywell International Inc. Previously, he held a series of executive, investor relations, and managerial finance roles with Honeywell International Inc. and its predecessor AlliedSignal Inc. He also served as Chief Financial Officer and IT Director of PerkinElmer Optoelectronics. Stauch serves as a director of Deluxe where he is currently the Chair of the Audit Committee and member of the Finance Committee. Stauch holds a Bachelor of Arts degree in Finance from Michigan State University Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 96

97 Today s Presenters, cont. Karl R. Frykman, SVP and President, Water Karl Frykman currently serves as Senior Vice President and President of the Water business for Pentair, and upon the separation, he will serve as Executive Vice President and Chief Operating Officer of Pentair. Prior to joining Pentair in 2000, Frykman served as Vice President of Operations for American Products, Vice President of Research and Development and Manufacturing for Anthony Pools, and Vice President of Poolsaver. Frykman holds an MBA from Harvard University and a Bachelor of Arts in Economics from Stanford University. John H. Jacko, SVP and Chief Marketing Officer John Jacko currently serves as Senior Vice President and Chief Marketing Officer for Pentair, and upon the separation, he will serve as Executive Vice President and Chief Growth Officer of Pentair. Prior to joining the company in 2017, he was Vice President and Chief Marketing Officer of Kennametal. Previously, Jacko was Senior Vice President and Chief Marketing Officer of Flowserve Corporation and also spent more than 20 years at Honeywell Aerospace (formerly Allied Signal) gaining experience and increasing leadership responsibility across a broad spectrum of product management, marketing, and sales. Jacko holds an MBA from the University of New Haven, Connecticut, and earned his Bachelor of Science degree in engineering from the University of Connecticut Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 97

98 Today s Presenters, cont. Phil Rolchigo, Ph.D., Vice President, Technology Phil Rolchigo currently serves as Vice President of Technology for Pentair and upon the separation, he will serve as Senior Vice President and Chief Technology Officer. Dr. Rolchigo joined the company in 2007 in his current role. Prior to Pentair, he held a number of leadership roles in the water industry, including serving as the Global Separation and Advanced Technologies Director for General Electric, Water and Process Technologies, and as the Chief Technology Officer for Osmonics, Inc. Rolchigo received a Doctorate and Master s degree in chemical and biochemical engineering from the University of Pennsylvania. He also received a Bachelor s degree in chemical engineering from the University of Rochester and was an Industrial Research Affiliate in chemical engineering at the Massachusetts Institute of Technology. Mark C. Borin, SVP, Chief Accounting Officer and Treasurer Mark Borin currently serves as Senior Vice President, Chief Accounting Officer and Treasurer for Pentair, and upon the separation, he will serve as Executive Vice President and Chief Financial Officer of Pentair. Borin began his career with the company in 2008 as Corporate Controller and Chief Accounting Officer. Prior to joining Pentair, he served as audit partner with KPMG and was a member of the firm for 19 years. At KPMG, Borin's list of clients included large, multi-national companies in the automotive, energy, real estate, and transportation industries. Borin holds a Bachelor s degree in Accounting and Economics from the University of Michigan. He is a Certified Public Accountant Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 98

99 Today s Presenters, cont. Jim Lucas, Vice President, Investor Relations and Treasury James Lucas currently serves as Vice President, Investor Relations and Treasury for Pentair and upon the separation, he will serve as Senior Vice President, Investor Relations and Treasurer. Lucas joined Pentair in 2012 as Vice President, Investor Relations and has also served as Vice President of Strategic Planning. Prior to Pentair, Lucas served as Managing Director, Research at Janney Montgomery Scott. Previously, he held analyst positions with NatWest Securities and Raymond James. Lucas holds an MBA from Tampa College and a Bachelor s of Science degree in accounting from Tampa College Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 99

100 Other Management not Presenting Kelly A. Baker, Chief Human Resources Officer, Water Kelly Baker currently serves as Chief Human Resources Officer (CHRO) of the Water business for Pentair, and upon the separation, she will serve as Executive Vice President and CHRO for Pentair. Prior to joining the company in 2017, Baker served as CHRO for Patterson Companies. In addition, for more than 20 years, she held various human resources roles during her tenure at General Mills, including VP of HR for the U.S. segment. She earned her MBA from the University of Michigan s Stephen M. Ross School of Business and her Bachelor of Business Administration degree in accounting from Howard University. Karla C. Robertson, General Counsel, Water Karla Robertson currently serves as General Counsel of the Water business for Pentair, and upon the separation, she will serve as Executive Vice President, General Counsel, and Secretary of Pentair. Prior to joining the company in 2017, Robertson held several legal positions of increasing responsibility at SUPERVALU, including over the last four years of her tenure serving as Executive Vice President, General Counsel, and Corporate Secretary. Previously, Robertson was in-house employment counsel at Target Corporation, worked in private practice at Faegre & Benson LLP (currently Faegre Baker Daniels LLP), and served as a judicial law clerk for the United States District Court for the Southern District of Iowa. Robertson holds her Juris Doctor degree from the University of Denver Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 100

101 Appendix 2018 Pentair Confidential property of Pentair. Do not reproduce without express permission of Pentair. 101