Slide 1: Q1 2021 Earnings Release
Q1 2021 EARNINGS RELEASE April 22, 2021 ©2020 Pentair. All Rights Reserved. Confidential property of Pentair. Do not reproduce or distribute without express permission of Pentair. 1
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 Started the year with continued momentum in Residential businesses; Commercial and Industrial showing signs of recovery • Sales up 22% to $866M; Adj. EPS up 56% to $0.81; and Significant YOY improvement in Free Cash Flow Stayed focused on the health and safety of our employees,
Slide 5: 2021 Execution Expectations
2021 Execution Expectations “Deliver the Core” “Build Our Future” Consistently Drive Make Our Significant ROS Commitments Expansion • Focused Growth Initiatives • Deliver Revenue Growth • Transformation Office Established • Deliver Income & Cash • Accelerate Digital, Innovation, • Disciplined Capita
Slide 6: Q1'21 Pentair Performance
Q1’21 Pentair Performance Sales Financial Highlights (YoY) $123M $8M $7M $18M $866M Core Sales up 19% • Consumer Solutions up 31% 22% $710M YoY • Industrial & Flow Technologies up 3% 18 pts 1 pt 1 pt 2 pts 22 pts Segment Income up 47% (1 pt) Acq./ Q1’20 Volume Price FX Q1’21 Divestitures ROS 19.0% …
Slide 7: Q1'21 Consumer Solutions Performance
Q1’21 Consumer Solutions Performance Sales Financial Highlights (YoY) $113M $7M $7M $5M $521M Pool • Sales up 49% 34% $389M YoY • Demand remained exceptionally strong • Season off to great start 29 pts 2 pts 2 pts 1 pt 34 pts (1 pt) Acq./ Q1’20 Volume Price FX Q1’21 Divestitures Water Treatment Segm
Slide 8: Q1'21 Industrial & Flow Technologies Performance
Q1’21 Industrial & Flow Technologies Performance Sales Financial Highlights (YoY) Residential Flow $13M $344M $8M $2M Flat • Sales up 13% $321M 7% • Demand strong across all product lines YoY 3 pts 0 pts 0 pts 4 pts 7 pts Commercial Flow (1 (1 pt) pt) Acq./ Q1’20 Volume Price FX Q1’21 Divestitures •
Slide 9: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Debt Summary Debt Roll-Forward $932M* Maturity 3/31/2020 3/31/2021 Use of Cash: ($M) $604M 65% Fixed 2021 – 2029 Beginning Debt $1,029 $840 Used (Generated) Cash 181 29 Share Repurchase 115 10 $328M Dividends 32 33 35% Variable 2023 Acquisitions/Other 94 20 3/31/2021 Aver
Slide 10: Q2'21 and Full Year 2021 Pentair Outlook
Q2’21 and Full Year 2021 Pentair Outlook Q2’21 FY’21 Sales and • Total Sales up ~13% to 16% • Total Sales up ~6% to 11% Income • Segment Income up ~12% to 20% • Segment Income up ~10% to 16% • Adjusted EPS ~$0.69 to $0.74 • Adjusted EPS ~$2.80 to $2.95 EPS (Up ~17% to 25%) (Up ~12% to 18%) • Corp. E
Slide 11: We are in the Right Space for the Future
We are in the Right Space for the Future We believe that we have well-positioned businesses We are accelerating investments in focused, higher growth, strategic priorities Transformation should drive higher levels of accountability and performance Our strong balance sheet should provide an additiona
Slide 12: Investor Day June 10, 2021
> PENTAIR Investor Day June 10, 2021
Slide 13: Appendix: GAAP to Non-GAAP Measurements & Reconciliations
APPENDIX GAAP TO NON-GAAP MEASUREMENTS & RECONCILIATIONS
Slide 14: 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 Full In millions, except per-share data Quarter Quarter
Slide 15: 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 16: 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 March 31, 2021 (Unaudited) Q1 Net Sales Growth Core Currency Acq. / Div. Total Total Pentair 18.5 % 2.6 % 0.9 % 22.0 % Consumer Solutions 31.1 %
Slide 17: ROIC Reconciliation
ROIC Reconciliation First Second Third Fourth First Quarter Quarter Quarter Quarter Quarter Dollars in millions 2020 2020 2020 2020 2021 Return on Invested Capital (ROIC) Segment income $ 111.5 $ 124.7 $ 140.5 $ 140.9 $ 164.4 Reported effective tax rate 21.5 % 28.8 % 11.5 % 9.8 % 13.5 % Adjusted eff
Slide 18: 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 ended March 31, March 31, In millions 2021 2020 Net cash used for operating activities of continuing operations $ (18.8) $ (162
Slide 19: 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) Second Third Fourth First Last Quarter Quarter Quarter Quarter Twelve In millions 2020 2020 2020 2021 Months Net income from continuin