Slide 1: Q2 2022 Earnings Release
Q2 2022 Earnings Release July 26, 2022
Slide 2: Caution Concerning 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 forward-looking statements.
Slide 3: Key Definitions
Key Definitions • Except as otherwise noted all references to 2022 and 2021 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 ✓ Strong financial results for Q2 Q2’22 Results Q2’21 Results ─ Sales growth of 13% Sales $1.06B $941M ─ Segment Income up 18% Segment Income $206M $175M ─ ROS expanded 70 basis points ─ Adjusted EPS increased 21% Adjusted EPS $1.02 $0.84 ✓ Acquisition of Manitowoc Ice expected to
Slide 5: Advancing Total Water Management and Building a Stronger Commercial Water Solutions Platform
Advancing Total Water Management and Building a Stronger Commercial Water Solutions Platform* Core Additional End Markets Pentair Everpure Manitowoc Ice Pentair KBI Services Commercial Water ~$225M ~$325M ~$125M Solutions ~$675M • Respected industry brand • Respected industry brand • National servic
Slide 6: Aligning Organization for Accelerated Success
Aligning Organization for Accelerated Success* Committed to driving value for all of our stakeholders Industrial & Flow Consumer Solutions (~$2.6B) Technologies (~$1.5B) Industrial & Flow Pool Water Solutions (~$1.7B) (~$1.2B^) Technologies (~$1.5B) We inspire people to move, improve, and enjoy life
Slide 7: Transformation to Enhance Value Creation
Transformation to Enhance Value Creation Execution Underway Centered Around Four Key Themes • Pricing Excellence • Strategic Sourcing • Operations Excellence • Organizational Effectiveness Enablers Transformation to • Focus & Prioritization unlock value and fund growth • Digital Enterprise (ERP & Da
Slide 8: Q2'22 Pentair Performance
Q2’22 Pentair Performance Sales Segment Income $29M $138M $136M $1.06B ($21M) ($3M) 13% $206M $941M YoY $175M ($95M) $6M * $6M * ($9M) 18% ($21M) YoY ROS ROS (2 pts) 14 pts 3 pts (2 pts) 13 pts 18.6% 11.6% 0.1% (10.1%) (0.9%) 19.3% Acq./ (1 pt) Growth/ Q2’21 Volume Price FX Q2’22 Q2’21 FX Inflation
Slide 9: Q2'22 Consumer Solutions Performance
Q2’22 Consumer Solutions Performance Sales Segment Income $27M $686M $99M $102M ($7M) ($1M) $577M 19% $169M ($10M) YoY $143M ($66M) ($9M) $4M * $3M * 18% YoY ROS ROS (2 pts) 17 pts 5 pts (1 pt) 19 pts 24.9% 12.8% 0.0% (11.5%) (1.5%) 24.7% Acq./ (1 pt) Growth/ Q2’21 Volume Price FX Q2’22 Q2’21 FX Inf
Slide 10: Q2'22 Industrial & Flow Technologies Performance
Q2’22 Industrial & Flow Technologies Performance Sales Segment Income $1M $37M $37M $377M ($3M) $364M ($15M) $57M $59M ($10M) 4% $3M * ($28M) $2M * YoY ($4M) 4% YoY ROS ROS (3 pts) 10 pts 0 pts (3 pts) 4 pts 15.7% 8.9% (0.1%) (7.7%) (1.1%) 15.7% Acq./ (1 pt) Growth/ Q2’21 Volume Price FX Q2’22 Q2’21
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Cash Flow ($M) Q2 2022 YTD 2022 $912M* Maturity Net Income - Continuing Ops $153 $272 Amortization 6 13 Subtotal $159 $285 $497M 54% Fixed 2022 – 2029 Depreciation 14 27 Capital Expenditures (22) (40) Asset Sales 3 3 $415M 46% Variable 2024 – 2026 Working Cap
Slide 12: Q3 and Full Year 2022 Pentair Outlook
Q3 and Full Year 2022 Pentair Outlook* • Strong price contribution expected to continue • Expecting more normal Q3’22 FY’22 seasonality at end of residential season Sales • Total Sales up ~3% to 5% • Total Sales up ~8% to 10% • FX headwinds increasing Income • Segment Income up ~5% to 7% • Segment I
Slide 13: 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 14: Appendix
Appendix GAAP TO NON-GAAP MEASUREMENTS & RECONCILIATIONS
Slide 15: Reported To Adjusted 2022 Reconciliation
Reported To Adjusted 2022 Reconciliation Pentair plc and Subsidiaries Reconciliation of GAAP to Non-GAAP Financial Measures for the Year Ending December 31, 2022 Excluding the Effect of 2022 Adjustments (Unaudited) Actual Forecast First Second Third Full In millions, except per-share data Quarter Qu
Slide 16: 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 Ended December 31, 2021 Excluding the Effect of 2021 Adjustments (Unaudited) First Second Third Fourth Full In millions, except per-share data Quarter Quarter Quar
Slide 17: 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, 2022 (Unaudited) Q2 Net Sales Growth Core Currency Acq. / Div. Total Total Pentair 12.3 % (2.2)% 3.0 % 13.1 % Consumer Solutions 15.4 %
Slide 18: ROIC Reconciliation
ROIC Reconciliation Second Third Fourth First Second Quarter Quarter Quarter Quarter Quarter Dollars in millions 2021 2021 2021 2022 2022 Return on Invested Capital (ROIC) Segment income $ 174.9 $ 179.7 $ 166.9 $ 172.1 $ 205.9 Reported effective tax rate 15.9 % 13.3 % 2.0 % 15.4 % 15.7 % Adjusted ef
Slide 19: 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 2022 2022 2022 Net cash (used for) provided b
Slide 20: 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 2021 2021 2022 2022 Months Net income from continuin
Slide 21: For Life
Essential Resources For Life