Slide 1: Q3 2021 Earnings Release
Q3 2021 Earnings Release October 26, 2021
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 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 21% to $969M ─ Adj. EPS up 27% to $0.89 ─ Robust Free Cash Flow; ROIC 19% ✓ Strong orders and backlog … continuing to manage supply chain constraints and rampant inflation ✓ Balance she
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 Q3 2021 Earnings
Slide 6: Q3'21 Pentair Performance
Q3’21 Pentair Performance Sales Performance Segment Income Performance $52M $19M $4M $969M $79M Flat $95M $18M $180M $6M * $799M 21% YoY $141M ($58M) $7M * 28% YoY ROS ROS 11 pts 7 pts 2 pts 1 pt 21 pts 17.6% 5.9% 0.0% (7.3%) 2.3% 18.5% (1 pt) Growth/ Acq./ Q3’20 FX Inflation Prod. Q3’21 Q3’20 Volum
Slide 7: Q3'21 Consumer Solutions Performance
Q3’21 Consumer Solutions Performance Sales Performance Segment Income Performance $19M $2M $614M $60M Flat $38M $84M $13M $144M $3M * 30% $471M YoY $114M ($43M) 27% $3M * YoY ROS ROS 18 pts 8 pts 4 pts 0 pts 30 pts 24.2% 5.9% (0.1%) (9.2%) 2.7% 23.5% (1 pt) Growth/ Acq./ Q3’20 FX Inflation Prod. Q3’
Slide 8: Q3'21 Industrial & Flow Technologies Performance
Q3’21 Industrial & Flow Technologies Performance Sales Performance Segment Income Performance $14M Flat $3M $355M $18M Flat $11M $327M $5M $52M 8% $3M * YoY $43M ($14M) 23% $4M * YoY ROS ROS 4 pts 4 pts 0 pts 0 pts 8 pts 13.0% 4.4% 0.0% (4.2%) 1.6% 14.8% (1 pt) Growth/ Acq./ Q3’20 FX Inflation Prod.
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Cash Flow ($M) Q3 2021 YTD 2021 $701M* Maturity Net Income - Continuing Ops $144 $407 Amortization 6 19 Subtotal $150 $426 $501M 71% Fixed 2022 – 2029 Depreciation 13 38 Capital Expenditures (14) (39) Asset Sales - 4 Working Capital (45) (75) $200M 29% Variab
Slide 10: Q4'21 and Full Year 2021 Pentair Outlook
Q4’21 and Full Year 2021 Pentair Outlook Q4’21 FY’21 Sales and • Total Sales up ~15% to 19% • Total Sales2017-2021F 2022-2025T up ~22% to 23% Income • Segment Income up ~16% to 24% • Segment Income up ~32% to 34% Up ~6% • Adjusted EPS ~$0.81 to $0.87 • MSD + M&A Adjusted EPS ~$3.34 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 Nine Fourth Full In millions, except per-share dat
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 Nine Fourth Full In millions, except per-share data Quarter Quarter
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 September 30, 2021 (Unaudited) Q3 Net Sales Growth Core Currency Acq. / Div. Total Total Pentair 18.4 % 0.7 % 2.3 % 21.4 % Consumer Solutions 26.
Slide 16: ROIC Reconciliation
ROIC Reconciliation 16 Q3 2021 Earnings Release. ©2021 Pentair. All Rights Reserved.
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 Three months Nine months ended ended ended ended March 31, June 30, September 30, September 30, In millions 2021 2
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) Fourth First Second Third Last Quarter Quarter Quarter Quarter Twelve In millions 2020 2021 2021 2021 Months Net income from continuin
Slide 19: Essential Resources For Life
Essential Resources For Life