Pentair Plc. · NYSE:PNR
Pentair — Q4 2021 Earnings Presentation
24 slides from Pentair's earnings presentation, Feb 1, 2022
Slide 1: Q4 2021 Earnings Release
Q4 2021 Earnings Release February 1, 2022
Slide 2: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements This release contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking statements. Witho
Slide 3: Key Definitions
Key Definitions • Except as otherwise noted all references to 2022, 2021 and 2020 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 translatio
Slide 4: Executive Summary
Executive Summary ✓ Strong financial results for FY’21 ─ Sales growth of 25% FY’20 Results FY’21 Results ─ Segment Income grew 33% ─ Return on Sales expanded 100 bps Sales $3.0B $3.8B ─ Adjusted EPS increased 36% ✓ Furthered our journey on creating a track record of $0.5B $0.7B Segment Income consis
Slide 5: ESG Priorities are Integrated with Business Strategy
ESG Priorities are Integrated with Business Strategy Environmental Social Governance • Focused on designing and commercializing • Driving an inclusive and diverse workforce • Board management and oversight of ESG products and services for environmental and leadership team • Strong board diversity su
Slide 6: Building a Track Record of Consistent Growth
Building a Track Record of Consistent Growth Expected Growth Drivers Grow the core to Strategic growth Transformation to Balance sheet to provide drive consistent value initiatives to accelerate unlock value and fund flexibility and upside creation the top line growth acceleration 6 Q4 2021 Earnings
Slide 7: Q4'21 Pentair Performance
Q4’21 Pentair Performance Sales Segment Income $42M $989M $67M $94M Flat $88M ($4M) $12M $167M $7M * $796M 24% $141M ($80M) YoY $7M * 18% YoY ROS ROS 11 pts 8 pts 5 pts 0 pts 24 pts 17.7% 7.8% 0.1% (10.1%) 1.4% 16.9% Acq./ (1 pt) Growth/ Q4’20 Volume Price FX Q4’21 Q4’20 FX Inflation Prod. Q4’21 Div
Slide 8: FY'21 Pentair Performance
FY’21 Pentair Performance Sales Segment Income $139M $80M $36M $3.76B $289M $4M $492M $64M $686M $3.02B 25% $26M * YoY $518M ($189M) 33% $28M * YoY ROS ROS 16 pts 5 pts 3 pts 1 pt 25 pts 17.2% 5.3% (0.1%) (6.3%) 2.1% 18.2% Acq./ (1 pt) Growth/ FY’20 Volume Price FX FY’21 FY’20 FX Inflation Prod. FY’
Slide 9: Q4'21 Consumer Solutions Performance
Q4’21 Consumer Solutions Performance Sales Segment Income $37M $630M $48M $67M Flat ($1M) $64M $7M $136M 31% $124M $4M * $482M YoY $3M * ($62M) 10% YoY ROS ROS 13 pts 10 pts 8 pts 0 pts 31 pts 25.7% 7.3% 0.0% (12.8%) 1.4% 21.6% Acq./ (1 pt) Growth/ Q4’20 Volume Price FX Q4’21 Q4’20 FX Inflation Prod
Slide 10: FY'21 Consumer Solutions Performance
FY’21 Consumer Solutions Performance Sales Segment Income $74M $11M $2.34B $225M $1M $99M $415M $43M $554M 34% $13M * YoY $1.74B ($134M) 32% $419M YoY $11M * ROS ROS 24 pts 6 pts 4 pts 0 pts 34 pts 24.0% 5.0% (0.1%) (7.7%) 2.5% 23.7% Acq./ Growth/ FY’20 Volume Price FX FY’21 FY’20 FX Inflation Prod.
Slide 11: Q4'21 Industrial & Flow Technologies Performance
Q4’21 Industrial & Flow Technologies Performance Sales Segment Income $19M $6M $358M $28M Flat $22M ($3M) $10M $54M $3M * $314M 14% YoY ($17M) 63% $33M YoY $4M * ROS ROS 7 pts 6 pts 2 pts (1 pt) 14 pts 10.6% 6.5% 0.0% (5.3%) 3.2% 15.0% Acq./ (1 pt) Growth/ Q4’20 Volume Price FX Q4’21 Q4’20 FX Inflat
Slide 12: FY'21 Industrial & Flow Technologies Performance
FY’21 Industrial & Flow Technologies Performance Sales Segment Income $26M $1.42B $64M $5M $40M $6M $76M $29M $213M 12% $13M * YoY $1.27B 30% $165M ($50M) YoY $17M * ROS ROS 6 pts 3 pts 0 pts 3 pts 12 pts 12.9% 3.6% 0.1% (3.9%) 2.3% 15.0% Acq./ (1 pt) Growth/ FY’20 Volume Price FX FY’21 FY’20 FX Inf
Slide 13: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Cash Flow ($M) FY 2020 FY 2021 $894M* Maturity Net Income - Continuing Ops $357 $556 Amortization 28 26 Subtotal $385 $582 $499M 56% Fixed 2022 – 2029 Depreciation 47 51 Capital Expenditures (62) (60) Asset Sales - 4 Working Capital 37 (149) $395M 44% Variabl
Slide 14: Q1 and Full Year 2022 Pentair Outlook
Q1 and Full Year 2022 Pentair Outlook • Residential (~60% of sales) expected to see new construction (~20% of Resi) moderate and replacement Q1’22 FY’22 (~80% of Resi) accelerate Sales • Total Sales up ~7% to 11% • Total Sales up ~6% to 9% • Commercial (~20% of sales) not yet back to pre-2019 levels
Slide 15: We Believe PNR is a Compelling Investment Opportunity
We Believe PNR is a Compelling Investment Opportunity Our Long-Term Expectations A Strong Foundation and the Opportunity to Create Substantial Value 15 Q4 2021 Earnings Release. ©2022 Pentair. All Rights Reserved.
Slide 16: Appendix
Appendix GAAP TO NON-GAAP MEASUREMENTS & RECONCILIATIONS
Slide 17: Reported To Adjusted 2021 Reconciliation
Reported To Adjusted 2021 Reconciliation Pentair plc and Subsidiaries Reconciliation of the GAAP Year Ended December 31, 2021 to the Non-GAAP Excluding the Effect of 2021 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quarter Quarter Year Ne
Slide 18: Reported To Adjusted 2020 Reconciliation
Reported To Adjusted 2020 Reconciliation Pentair plc and Subsidiaries Reconciliation of the GAAP Year Ended December 31, 2020 to the Non-GAAP Excluding the Effect of 2020 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quarter Quarter Year Ne
Slide 19: Core Sales Growth Reconciliation
Core Sales Growth Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment For the Quarter and Year Ended December 31, 2021 (Unaudited) Q4 Net Sales Growth Full Year Net Sales Growth Core Currency Acq. / Div. Total Core Currency Acq. / Div. T
Slide 20: ROIC Reconciliation
ROIC Reconciliation Fourth First Second Third Fourth Quarter Quarter Quarter Quarter Quarter Dollars in millions 2020 2021 2021 2021 2021 Return on Invested Capital (ROIC) Segment income $ 140.9 $ 164.4 $ 174.9 $ 179.7 $ 166.9 Reported effective tax rate 9.8 % 13.5 % 15.9 % 13.3 % 2.0 % Adjusted eff
Slide 21: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Pentair plc and Subsidiaries Reconciliation of the GAAP Operating Activities Cash Flow to the Non-GAAP Free Cash flow (Unaudited) Years ended December 31 In millions 2021 2020 Net cash provided by operating activities of continuing operations $ 613.6 $ 574.2 Capital exp
Slide 22: Last Twelve Months Adjusted EBITDA Reconciliation
Last Twelve Months Adjusted EBITDA Reconciliation Pentair plc and Subsidiaries Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA For the Fiscal Year Ended December 31, 2021 (Unaudited) In millions FY 2021 Net income from continuing operations $ 556.0 Adjustments: Deal-relate
Slide 23: Reported To Adjusted 2022 Reconciliation
Reported To Adjusted 2022 Reconciliation Pentair plc and Subsidiaries Reconciliation of the GAAP Year Ending December 31, 2022 to the Non-GAAP Excluding the Effect of 2022 Adjustments (Unaudited) Forecast First Full In millions, except per-share data Quarter Year Net sales approx Up 7% - 11% approx
Slide 24: For Life
Essential Resources For Life