Slide 1: Q2 2021 Earnings Release
Q2 2021 Earnings Release July 27, 2021
Slide 2: Forward-Looking Statements
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 1995. ALL STATEMENTS, OTHER THAN STATEMENTS OF HISTORICAL FACT ARE F
Slide 3: Key Definitions
Key Definitions • Except as Otherwise Noted All References to 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 Translation and
Slide 4: Executive Summary
Executive Summary Continued residential strength and recovery in commercial and industrial businesses ─ Sales up 32% to $941M ─ Adj. EPS up 42% to $0.84 ─ Robust Free Cash Flow Orders and backlog at record levels; operations and supply performance drove production to record levels Balance shee
Slide 5: 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 5 Q2 2021 Earnings
Slide 6: Q2'21 Pentair Performance
Q2’21 Pentair Performance Sales Performance Segment Income Performance $12M $18M $941M $68M $2M $187M $11M $13M $175M $6M * 32% ($33M) $713M YoY $125M 40% $7M * YoY ROS ROS 26 pts 2 pts 2 pts 2 pts 32 pts 17.5% 4.2% (0.2%) (4.7%) 1.8% 18.6% (1 pt) Growth/ Acq./ Q2’20 FX Inflation Prod. Q2’21 Q2’20 V
Slide 7: Q2'21 Consumer Solutions Performance
Q2’21 Consumer Solutions Performance Sales Performance Segment Income Performance $6M $12M $5M $577M $153M $53M Flat $11M $143M $3M * 44% YoY ($18M) 48% $401M $97M YoY $3M * ROS ROS 37 pts 2 pts 3 pts 2 pts 44 pts 24.1% 2.9% (0.3%) (4.5%) 2.7% 24.9% (1 pt) Growth/ Acq./ Q2’20 FX Inflation Prod. Q2’2
Slide 8: Q2'21 Industrial & Flow Technologies Performance
Q2’21 Industrial & Flow Technologies Performance Sales Performance Segment Income Performance $13M $364M $34M $5M Flat $15M $2M $10M $57M $312M 17% $3M * YoY $44M 30% $4M * ($14M) YoY ROS ROS 10 pts 2 pts 0 pts 5 pts 17 pts 14.1% 2.9% 0.1% (4.5%) 3.1% 15.7% (1 pt) Growth/ Acq./ Q2’20 FX Inflation Pr
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Cash Flow ($M) Q2 2021 YTD 2021 $717M* Maturity Net Income - Continuing Ops $133 $264 Amortization 6 13 Subtotal $139 $277 $501M 70% Fixed 2022 – 2029 Depreciation 13 26 Capital Expenditures (11) (24) Asset Sales 1 4 $216M 30% Variable 2023 Working Capital 13
Slide 10: Q3'21 and Full Year 2021 Pentair Outlook
Q3’21 and Full Year 2021 Pentair Outlook Q3’21 FY’21 Sales and • Total Sales up ~16% to 19% • Total Sales2017-2021F 2022-2025T up ~21% to 23% Income • Segment Income up ~18% to 23% • Segment Income up ~30% to 34% Up ~6% • Adjusted EPS ~$0.81 to $0.85 • MSD + M&A Adjusted EPS ~$3.30 to $3.40 EPS Sale
Slide 11: We Believe PNR is a Compelling Investment Opportunity
We Believe PNR is a Compelling Investment Opportunity Our Long-Term Expectations An Industry Leader with a Sustainable Business Model Additional Value Creation Powerful, Innovative with Focused & Faster from Strong Balance Sheet Brand Portfolio Growing Initiatives and Cash Flow Favorable Secular Tre
Slide 12: Appendix
Appendix GAAP TO NON-GAAP MEASUREMENTS & RECONCILIATIONS
Slide 13: Reported To Adjusted 2021 Reconciliation
Reported To Adjusted 2021 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2021 excluding the effect of 2021 adjustments (Unaudited) Actual Forecast First Second Third Full In millions, except per-share data Quarter Qu
Slide 14: Reported To Adjusted 2020 Reconciliation
Reported To Adjusted 2020 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2020 excluding the effect of 2020 adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quar
Slide 15: 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 Ended June 30, 2021 (Unaudited) Q2 Net Sales Growth Core Currency Acq. / Div. Total Total Pentair 27.7 % 2.5 % 1.7 % 31.9 % Consumer Solutions 39.4 % 1
Slide 16: ROIC Reconciliation
ROIC Reconciliation Second Third Fourth First Second Quarter Quarter Quarter Quarter Quarter Dollars in millions 2020 2020 2020 2021 2021 Return on Invested Capital (ROIC) Segment income $ 124.7 $ 140.5 $ 140.9 $ 164.4 $ 174.9 Reported effective tax rate 28.8 % 11.5 % 9.8 % 13.5 % 15.9 % Adjusted ef
Slide 17: 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) Three months Three months Six months ended ended ended March 31, June 30, June 30, In millions 2021 2021 2021 Net cash (used for) provided b
Slide 18: 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 (Unaudited) Third Fourth First Second Last Quarter Quarter Quarter Quarter Twelve In millions 2020 2020 2021 2021 Months Net income from continuin
Slide 19: For Life
Essential Resources For Life