Slide 1: Xylem Inc. Q1 2013 Earnings Release
Exhibit 99.2 XYLEM INC. Q1 2013 EARNINGS RELEASE APRIL 30, 2013
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS Thisdocumentcontainsinformationthat mayconstitute“forward-looking statements.”Forward-lookingstatementsby their nature addressmattersthat are, to differentdegrees,uncertain.Generally,the words“anticipate,”“estimate,”“expect,” “project,”“intend,”“plan,”“believe,”“target”and
Slide 3: Q1'13 Xylem Results: Performance Summary
Q1’13 XYLEM RESULTS FINANCIAL PERFORMANCE PERFORMANCE SUMMARY Orders $962M Book to Bill 1.09 Constant Revenue $879M -5% Currency European Market Weakness, Project Timing Basis * Gross Margin 38.0% -120 bps Volume Decline & Continued Investment Partially Offset by Cost Reductions Operating Margin* 8.
Slide 4: Business Update
BUSINESS UPDATE DELIVER CUSTOMER VALUE • Enhancing AftermarketCapabilities (PIMSAcquisition/TotalCare) • Focused onEnsuring RobustDeliveryandResponsiveness DRIVEPROFITABLE GROWTH • Advancing Acquisition Strategy • NewProductLaunches GainingTraction • AcceleratingGeographic Expansion IMPROVEBUSINESS
Slide 5: Q1'13 Xylem Performance
Q1’13 XYLEM PERFORMANCE MANAGING THROUGH MARKET CONDITIONS & TOUGH PRIOR YEAR COMPS Q1 2013 EARNINGS RELEASE * See appendix for non-GAAP reconciliations 5
Slide 6: Q1'13 Xylem Performance: EPS
Q1’13 XYLEM PERFORMANCE Q1 EPS PERFORMANCE IN LINE WITH EXPECTATIONS Q1 2013 EARNINGS RELEASE * See appendix for non-GAAP reconciliations 6
Slide 7: Q1'13 Water Infrastructure Performance
Q1’13 WATER INFRASTRUCTURE PERFORMANCE MAINTAINING INVESTMENT DESPITE LOWER VOLUME Q1 2013 EARNINGS RELEASE * See appendix for non-GAAP reconciliations 7
Slide 8: Q1'13 Applied Water Performance
Q1’13 APPLIED WATER PERFORMANCE CUSTOMER EXCELLENCE & PRODUCTIVITY DRIVE MARGIN PERFORMANCE Q1 2013 EARNINGS RELEASE * See appendix for non-GAAP reconciliations 8
Slide 9: Xylem Financial Position
XYLEM FINANCIAL POSITION (Dollars, In Millions) • Free Cash Flow Decline • Lower Income • Timing of Tax Payments • Capex > 1 reinvestment ratio FCF% 61% -24% Capital Summary/Liquidity March 31, 2013 (Dollars, In Millions) Cash 375 • Strong cash position Debt 1,205 • No Significant Debt Maturities Un
Slide 10: 2013 Financial Guidance Summary
2013 FINANCIAL GUIDANCE SUMMARY 2013 Full Year Growth Financial Outlook 2013E vs. 2012 Revenue (Mid-Point) Total Growth Organic Acquisition FX Xylem Consolidated ~$3,925M ~3 to 4% 0 to 1% 2% 1% Water Infrastructure ~$2,540M ~4 to 5% 0 to 1% 3% 1% Applied Water ~$1,450M ~1 to 2% 0 to 1% 0% 1% Segment
Slide 11: Revenue Outlook by End Market
REVENUE OUTLOOK BY END MARKET vs. FY’13 Previous Planning Assumptions vs. PY Outlook Flat to Up Low • 2H U.S. Improvement/Easier Industrial Comps Single Digit • Europe Challenged • Stable OPEX Market Public Utility Flat • Modest Improvement in U.S. Capital Projects Flat to Up Low • Modest 2H U.S. Im
Slide 12: 2013 EPS Guidance
2013 EPS GUIDANCE Q1 2013 EARNINGS RELEASE * See appendix for non-GAAP reconciliations 12
Slide 13: Summary
SUMMARY Q1 PERFORMANCE • CompletedPIMSandMultiTrodeAcquisitions …IntegrationUnderway • Orders/Revenue Slightly Weaker Than Expected • Operations & Cost Reduction Activities Deliver EPS In Line with Expectations • Successful Product Launches 2013 OUTLOOK • Continuing to Invest for GrowthExpect … Addi
Slide 14: Appendix
APPENDIX Q1 2013 EARNINGS RELEASE 14
Slide 15: Non-GAAP Measures
NON-GAAP MEASURES Management views key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, free cash flow, working capital, and backlog, among others. In addition, we consider certain measures to be useful to management and investors evaluati
Slide 16: Non-GAAP Reconciliation: Organic & Constant Currency Revenue Growth
NON-GAAP RECONCILIATION: ORGANIC & CONSTANT CURRENCY REVENUE GROWTH Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic & Constant Currency Revenue ($ Millions) (As Reported - GAAP) (As Adjusted - Organic) Constant Currency (A) (B) (C) (D) (E) (F) = B+C+D+E (G) = F/A (H) = (B + D) / A Change % C
Slide 17: Non-GAAP Reconciliation: Organic & Constant Currency Order Growth
NON-GAAP RECONCILIATION: ORGANIC & CONSTANT CURRENCY ORDER GROWTH Xylem Inc. Non-GAAP Reconciliation Reported vs. Organic & Constant Currency Order Growth ($ Millions) (As Reported - GAAP) (As Adjusted - Organic) Constant Currency (A) (B) (C) (D) (E) (F) = B+C+D+E (G) = F/A (H) = (B + D) / A Change
Slide 18: Non-GAAP Reconciliation: Adjusted Diluted EPS
NON-GAAP RECONCILIATION: ADJUSTED DILUTED EPS Xylem Inc. Non-GAAP Reconciliation Adjusted Diluted EPS ($ Millions, except per share amounts) Q1 2012 Q1 2013 As Reported Adjustments Adjusted As Reported Adjustments Adjusted Total Revenue 925 925 879 879 Operating Income 99 5 a 104 66 12 c 78 Operatin
Slide 19: Non-GAAP Reconciliation: Adjusted Operating Income
NON-GAAP RECONCILIATION: ADJUSTED OPERATING INCOME Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Q1 '13 '12 Total Revenue • Total Xylem 879 925 • Water Infrastructure 551 584 • Applied Water 345 355 Operating Income • Total Xylem 66 99 • Water Infrastructure 42 75 • Appli
Slide 20: Non-GAAP Reconciliation: Free Cash Flow
NON-GAAP RECONCILIATION: FREE CASH FLOW Xylem Inc. Non-GAAP Reconciliation Net Cash - Operating Activities vs. Free Cash Flow Three Months Ended March 31, 2013 and 2012 ($ Millions) Three Months Ended 2013 2012 Net Cash - Operating Activities 20 61 Capital Expenditures (30) (31) Free Cash Flow, incl
Slide 21: Non-GAAP Reconciliation: Xylem EBITDA & Adj. EBITDA
NON-GAAP RECONCILIATION: XYLEM EBITDA & ADJ. EBITDA Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter ($ Millions) 2013 Q1 Q2 Q3 Q4 Total Pre-Tax Net Income 51 Interest Expense (Income), net 12 Depreciation 25 Amortization 12 Stock Compensation 6 EBITDA 106 Restructuring & Rea
Slide 22: Non-GAAP Reconciliation: Water Infrastructure EBITDA & Adj. EBITDA
NON-GAAP RECONCILIATION: WATER INFRASTRUCTURE EBITDA & ADJ. EBITDA Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter Water Infrastructure ($ Millions) 2013 Q1 Q2 Q3 Q4 Total Pre-Tax Net Income 42 Interest Expense (Income), net - Depreciation 19 Amortization 9 Stock Compensatio
Slide 23: Non-GAAP Reconciliation: Applied Water EBITDA & Adj. EBITDA
NON-GAAP RECONCILIATION: APPLIED WATER EBITDA & ADJ. EBITDA Xylem Inc. Non-GAAP Reconciliation EBITDA and Adjusted EBITDA by Quarter Applied Water ($ Millions) 2013 Q1 Q2 Q3 Q4 Total Pre-Tax Net Income 40 Interest, net - Depreciation 6 Amortization 2 Stock Compensation 1 EBITDA 49 Restructuring & Re
Slide 24: Non-GAAP Reconciliation: Guidance
NON-GAAP RECONCILIATION: GUIDANCE Xylem Inc. Non-GAAP Reconciliation Guidance ($ Millions, except per share amounts) Illustration of Mid Point Guidance 2013 Guidance FY '12 FY '13 As Reported Adjustments Adjusted As Projected Adjustments Adjusted Total Revenue 3,791 3,791 3,925 3,925 Segment Operati
Slide 25: Non-GAAP Reconciliation: Adj. Operating Income and Margin
NON-GAAP RECONCILIATION: ADJ. OPERATING INCOME AND MARGIN Xylem Inc. Non-GAAP Reconciliation Adjusted Operating Income ($ Millions) Mid Point Guidance 2008 2009 2010 2011 2012 2013E Revenue 3,291 2,849 3,202 3,803 3,791 3,925 Operating Income 315 276 388 395 443 425 Operating Margin 9.6% 9.7% 12.1%
Slide 26: Q1 2013 Earnings Release
xylem Let’s Solve Water NYSE: XYL You may scan the QR code for direct es access to the Xylem IR app for iPad® Phil De Sousa, Investor Relations Officer mobile devices. (914) 323-5930 Janice Tedesco, Investor Relations Coordinator (914) 323-5931 ihe : Apple and iPad are registered http://investors.xy