Q1 2015 EARNINGS RELEASE

April 21, 2015

PENTAIR

Q1 2015 Earnings Release

FORWARD-LOOKING STATEMENTS
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This communication 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 forwardlooking statements. Without limitation, any statements preceded or followed by or that include the words targets,
plans, believes, expects, intends, will, likely, may, anticipates, estimates, projects, should,
would, positioned, strategy, future or words, phrases or terms of similar substance or the negative thereof, are
forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject
to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual
results to differ materially from those expressed or implied by such forward-looking statements. These factors include
the ability to achieve the benefits of planned cost take-out actions, the ability to successfully complete the disposition of
our Water Transport business on anticipated terms and timetable; overall global economic and business conditions;
competition and pricing pressures in the markets we serve; the strength of housing and related markets; volatility in
currency exchange rates and commodity prices; inability to generate savings from excellence in operations initiatives
consisting of lean enterprise, supply management and cash flow practices; increased risks associated with operating
foreign businesses; the ability to deliver backlog and win future project work; failure of markets to accept new product
introductions and enhancements; the ability to successfully identify, complete and integrate acquisitions; the impact of
changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental
proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these
and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including in our 2014
Annual Report on Form 10-K. All forward-looking statements speak only as of the date of this communication. We
assume no obligation, and disclaim any obligation, to update the information contained in this communication.

PENTAIR

Q1 2015 Earnings Release

KEY DEFINITIONS
Except as Otherwise Noted All References to 2015 and 2014 Represent Our
Results from Continuing Operations for the Period Indicated Presented on an
Adjusted Basis
Core Sales Refers to GAAP Revenue from Existing Operations Excluding (1) the
Impact of Currency Translation and (2) the Impact of Revenue from Acquired
Businesses Recorded Prior to the First Anniversary of the Acquisition Less the
Amount of Sales Attributable to Divested Product Lines Not Considered
Discontinued Operations
Segment Income (Loss) Represents Operating Income (Loss) from Continuing
Operations Exclusive of Certain Acquisition Related Expenses, Costs of
Restructuring Activities, Mark-to-Market" Gain (Loss) for Pension and Other
Post-Retirement Plans, Impairments and Other Unusual Non-Operating Items
See Appendix for GAAP to Non-GAAP Reconciliations

PENTAIR

Q1 2015 Earnings Release

EXECUTIVE SUMMARY
Markets Throughout Q1 Were Significantly Below Forecast We
Expected Energy to be Weak, but Industrial Contraction
was a Surprise
Planning on Continued FX Translation Impact and Very Little
Recovery in our End Markets in 2015
Adjusting Cost Structure Accordingly to Reflect FX and Core
Revenue Decline

Balance Sheet and Cash Flow Remain Strong Will Continue

to Invest in M&A Where Appropriate While Executing the
Cost Playbook
2015 Adjusted EPS Guidance now at ~$3.80
Economic Challenges Persist 2015 a Pause Year
PENTAIR

Q1 2015 Earnings Release

2015 KEY FORECAST ASSUMPTIONS

12/17/14
December
Outlook Call

2/3/15
Q4 Earnings
Update

4/21/15
Q1 Earnings
Update

FX Headwind (EPS)

~($0.10)

>($0.20)

>($0.25)

Core Sales Growth

~2 - 4%

~2 - 3%

~(2 - 3%)

Op. Margin Expansion

~110bps

~90bps

~50bps

$200M Forecasted

$200M Completed

$200M Completed

More Aggressive

$40M / $100M+

>$1B

~$0.8B

Share Buyback

2015 / 2016
Modest
Repositioning Benefit (cumulative)
Balance Sheet Capacity

>$1B

External Headwinds Continue to Worsen Focusing on Cost Actions

PENTAIR

Q1 2015 Earnings Release

Q1'15 PENTAIR RESULTS

Sales

Op Income (Rpt.)
Op Income (Adj.)
ROS (Adj.)
EPS (Rpt.)
EPS (Adj.)

Q115

Q1'14

FINANCIAL HIGHLIGHTS (YoY)

$1.48B

$1.64B

Core Sales Down 4% (Sales Down 10% including FX)

$171M
$171M
11.6%

$182M
$201M
12.2%

$0.65
$0.65

$0.63
$0.71

SUMMARY
Continued Growth in Food & Beverage
FX Headwind Significant Volume Weakness in
Energy and Industrial
Productivity and Price Not Enough to Offset
Volume Shortfall
Completed $200 Million Share Buyback

Valves & Controls Down 11%

Flow & Filtration Solutions Down 7%
Water Quality Systems Up 4%
Technical Solutions Up 1%

Adj. Op Income Down 15%

Adj. Op Margins 11.6% Down 60 bps

Adj. EPS Down 8%

Effective Tax Rate of 23%
Net Interest of $18M; Share Count 183M

Q1 Free Cash Flow Usage of $159M

Consistent with Seasonality

Disappointing Start to the Year Corrective Actions Underway

PENTAIR

Q1 2015 Earnings Release

Q1'15 PENTAIR PERFORMANCE

SALES
$1.64B

($75M)

$9M

OPERATING INCOME
($103M)

$1.48B

$201M

($46M)
($23M)

$39M

(10%)

(15%)

YoY

YoY

Core (4%)

Q1'14

(5 pt)

1 pt

(6 pts)

(10 pts)

Volume

Price

FX

Q1'15

Sales Highlights (by Vertical)

Core Sales Down 4%
Industrial Down 5%
Residential & Commercial Down 1%
Energy Down 9%
Food & Beverage Up 3%
Infrastructure Down 5%

$171M

ROS
12.2%

(1.7%)

(1.4%)

Q1'14
Adjusted

Vol/FX

Infl.

ROS
2.5%
Prod./
Price

ROS
11.6%
Q1'15
Adjusted

Operating Margins / Productivity Highlights

Adjusted Operating Margins 11.6%
Volume Shortfall and FX Deleverage Negatively

Impacted Margins
Inflation Headwinds Remained

Consistently Modest
Lean, Sourcing Actions, and G&A Reductions

Drove Productivity Gains

Productivity Unable to Offset Volume Shortfall

PENTAIR

Q1 2015 Earnings Release

Q1'15 VALVES & CONTROLS PERFORMANCE

SALES
$531M

($59M)

$0M

SEGMENT INCOME
($43M)

$61M

($27M)

$429M

$14M
($6M)

(19%)

(11 pts)

0 pt

(8 pts)

(19 pts)

Volume

Price

FX

Q1'15

Sales Highlights (by Vertical)

Backlog Including FX Down 4% Sequentially
to $1.2B Orders of $437M; Core Down 15% YoY

Core Sales Down 11% YoY

(31%)

YoY

Core (11%)

Q1'14

$42M

Industrial Process Down 10%

Energy Oil & Gas Down 11%
Energy Power Down 6%
Energy Mining Down 26%

YoY

ROS
11.5%

(3.7%)

(1.1%)

Q1'14

Vol/FX

Infl.

ROS
3.1%
Prod./
Price

ROS
9.8%
Q1'15

Segment Margins / Productivity Highlights

Segment Margins 9.8%
Volume Drop Significantly Impacted Margins
OMT Investment Continued to Read Out
Lean, Sourcing Actions, and G&A Reductions

Drove Productivity

Weakness Across All Verticals North America Only Area of Growth

PENTAIR

Q1 2015 Earnings Release

VALVES & CONTROLS BACKLOG (Includes Impact of FX)

600
500
400
300
200
100
0

388

INDUSTRIAL - Process

ENERGY - Oil & Gas

Backlog ($ Millions)

Backlog ($ Millions)

391

390

376

396

413

370

349

344

600
500
400
300
200
100
0

549

530

543

550

564

557

508

482

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

2014: Revenue ~40%

First Quarter Core Orders Down 13% Y-o-Y

2014: Revenue ~35%

First Quarter Core Orders Down 17% Y-o-Y

ENERGY - Power
600
500
400
300
200
100
0

545

ENERGY - Mining

Backlog ($ Millions)

374

371

353

364

368

373

345

328

310

600
500
400
300
200
100
0

Backlog ($ Millions)

90

87

77

70

71

63

49

50

52

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

Q1 13 Q2 13 Q3 13 Q4 13 Q1 14 Q2 14 Q3 14 Q4 14 Q1 15

2014: Revenue ~15%

First Quarter Core Orders Down 11% Y-o-Y

2014: Revenue ~10%

First Quarter Core Orders Down 19% Y-o-Y

FX Hurts Backlog and Order Weakness Reflective of Global Capital Strike

PENTAIR

Q1 2015 Earnings Release

Q1'15 FLOW & FILTRATION SOLUTIONS PERFORMANCE

SALES
$401M

($32M)

$6M

SEGMENT INCOME
($25M)

$350M

$35M

($17M)
$17M

($6M)

(13%)

Q1'14

(16%)

YoY

Core (7%)

(8 pts)

1 pt

(6 pts)

(13 pts)

Volume

Price

FX

Q1'15

Sales Highlights (by Vertical)

Core Sales Down 7%

YoY

ROS
8.7%

(3.6%)

(1.3%)

Q1'14

Vol/FX

Infl.

ROS
4.5%
Prod./
Price

Q1'15

Segment Margins 8.3%

Volume and Mix Dragged on Margins

Food & Beverage Down 2%

Price Initiatives Offset Inflation

Industrial Down 1%

ROS
8.3%

Segment Margins / Productivity Highlights

Residential & Commercial Down 11%

Infrastructure Down 14%

$29M

Productivity Read Through as Lean and Sourcing

Accelerated and Gained Traction

Weak Demand and Destocking Impacted Top Line

PENTAIR

Q1 2015 Earnings Release

10

Q1'15 WATER QUALITY SYSTEMS PERFORMANCE

SALES
$304M

$11M

$2M

SEGMENT INCOME
($10M)

Core 4%

Q1'14

$307M

$49M

YoY

1 pts

Volume

Price

FX

Q1'15

Food & Beverage Up 11%

$6M

YoY

(3 pts)

Residential & Commercial Up 3%

($6M)

3%

1 pt

Core Sales Up 4%

$1M

1%

3 pts

Sales Highlights (by Vertical)

$48M

ROS
15.7%

0.5%

(1.9%)

Q1'14

Vol/FX

Infl.

ROS
1.8%
Prod./
Price

ROS
16.1%
Q1'15

Segment Margins / Productivity Highlights

Segment Margins 16.1%

Lean, Sourcing Actions, and G&A Reductions

Continued to Read Out

Price and Productivity Offset Inflation
NPD Investments Continued

Solid Growth While Margins Impacted by Mix and Growth Investments

PENTAIR

Q1 2015 Earnings Release

11

Q1'15 TECHNICAL SOLUTIONS PERFORMANCE

SALES
$415M

$5M

$2M

SEGMENT INCOME
($26M)

Core +1%

Q1'14

$79M
$396M

$4M

$73M

(8%)

YoY

YoY

0 pts

(6 pts)

(5 pts)

Volume

Price

FX

Q1'15

Core Sales Up 1%

($5M)

(5%)

1 pt

Sales Highlights (by Vertical)

($5M)

ROS
19.1%

(0.1%)

(1.4%)

0.8%

Q1'14

Vol/FX

Infl.

Prod./
Price

ROS
18.4%
Q1'15

Segment Margins / Productivity Highlights

Segment Margins 18.4%

Industrial Flat

Experienced FX Headwind and Softer Volume

Energy Up 2%

Mix Impact and Transactional FX Negatively

Residential & Commercial Up 7%

Infrastructure Up 2%

Impacted Productivity
Price Gains Were Modest

Core Sales Growth Weak Mix and Productivity Hurt Margins

PENTAIR

Q1 2015 Earnings Release

12

2015F CORE SALES GROWTH PROFILE

Key Vertical

% of PNR
(2014 Sales)

Q115
Growth

FY15
Growth Forecast

FY15
Assumptions

INDUSTRIAL

~29%

(5%)

~(4-6)%

Cap Ex Pause Continues

NA Chemical Buildout

RESIDENTIAL &
COMMERCIAL

~27%

(1%)

~+2-3%

NA Resi Replacement
Non-Resi Improvement

Power and Mining

Remain Weak
Upstream Pressure and
Downstream Pause
NA LNG Good for Now
Beer and Dairy Strength
Food Service Strong
Ag Remains Weak

Muni Weakness Persists

ENERGY

~27%

O&G 19%
Power 5%
Mining 3%

(9%)

~(6-8%)

FOOD &
BEVERAGE

~10%

+3%

~+5-7%

INFRASTRUCTURE

~7%

(5%)

~(1-3%)

Industrial Pause Impacts FY Resi /Comm and F&B Still Healthy

PENTAIR

Q1 2015 Earnings Release

13

GUIDANCE UPDATE FULL YEAR 2015 ADJUSTED EPS

PREVIOUS GUIDANCE

CURRENT GUIDANCE

$4.10 - $4.25

~$3.80

2-3% Core Sales Growth

FX Headwinds Mitigated by Internal
Execution

Top Line Reduction Due to Stronger

Dollar, Market Softness, Reduced Capital
Spending, and Customer De-Stocking

Cost Actions on Track

Accelerating Cost Actions

+10% YoY EPS Growth

YoY EPS Growth Expected to be Flat

Strong Cash Flow

Cash Flow Remains Strong

Balance Sheet Flexibility

Balance Sheet Flexibility

Volume Shortfalls Hurt 1H Corrective Actions to Drive 2H Improvement

PENTAIR

Q1 2015 Earnings Release

14

2015/2016 COST ACTIONS

Translation FX Impact
(FY 2015 Op Income $M)

~($65)

~($75)

~($50)

Expect Continued Strengthening of USD

Against Most Major Currencies Increasing
Top Line and Bottom Line Headwinds
Expect YOY OI Impact of ~$65M @ 1.08 Euro
Exchange Rate Increases to $75M at Parity
Implementing Cost Take-Out Actions in 2015
to Mitigate FX Translation Impact for 2016

February
2015

Current
View

Euro
@ 1.00

Cost Actions
(Cumulative $M)

$100+
~$40

Actions Executed in 2015 Result in Full Run

Rate Benefit in 2016

~($60)
2015F Cost

Significant Cost Actions Across all Four

Reporting Segments but Majority of Actions
in Valves & Controls and Flow & Filtration
Solutions Due to Revenue Challenges

2015
Benefit

2016
Benefit

Focus is Still on G&A and Variable Labor but

also Expanding to Manufacturing Rooftops

2015 Actions Expected to Yield $100M+ in 2016 Savings

PENTAIR

Q1 2015 Earnings Release

15

2015 CURRENT OUTLOOK (FY)

SALES
$7.0B

($120M)

$0M

OPERATING INCOME
($450M)

$1.02B ($50M)

$6.5B

($65M)

$160M $970M

($95M)
$0M

Core (2%)

(8%)

(5%)

YoY

YoY

(1.3%)

ROS
0.0%

2.3%

ROS
15.0%

(2 pts)

0 pt

(6 pts)

(8 pts)

ROS
14.5%

FY'14

Volume

Price

FX

FY'15

FY'14

Vol

FX

Infl.

Price

Prod.

FY'15

2/3/15

$175M

$50M

($330M)

$6.9B

2/3/15

$60M

($45M)

($85M)

$50M

$100M

$1.1B

Sales Highlights

Core Sales Down ~2%

Energy Weakness Continues

(0.5%)

(0.0%)

Operating Income Detail

Adjusted Operating Margins 15.0%

Productivity

Industrial Recovery Not Expected

Cost-Out

NA Resi Strength but Global Resi Slower

Base Productivity

$40M
$120M

Food & Beverage Strength Remains

Expect Core Sales Decline in 1H and Cost Actions to Read Out in 2H

PENTAIR

Q1 2015 Earnings Release

16

BALANCE SHEET AND CASH FLOW

CASH FLOW
($M)
Net Income from Continuing
Operations
Non-Cash Items
Subtotal
Working Capital
Capital Expenditures
Asset Sales
Other Accruals/Other
Free Cash Flow
Discontinued Operations FCF
Continuing Operations FCF

DEBT SUMMARY

Q1
2015
$
$
$
$
$
$
$
$
$
$

118
70
188
(234)
(35)
2
(87)
(166)
(7)
(159)

Q1
2014
$
$
$
$
$
$
$
$
$
$

125
71
196
(147)
(27)
(46)
(24)
15
(39)

YOY Chg
$
$
$
$
$
$
$
$
$
$

(7)
(1)
(8)
(87)
(8)
2
(41)
(142)
(22)
(120)

$3.4B*

Maturity

$2.0B

Fixed

$1.4B

Variable

Q1'15

15 22

19

~59% Fixed

Avg. Rate ~2.35%

*Does Not Include $131M of Cash on Hand

DEBT ROLLFORWARD
Other FY Key Financial Metrics:

Capital Expenditures ~$150M

Total D&A of ~$250M + ~$30M of Non-Cash
Stock Compensation
Share Buyback of $200M
ROIC at Quarter End 10.9%

Use of Cash: ($M)

Beginning Debt
Generated Cash
Share Repurchase
Dividends
Other
Ending Debt

$
$
$
$
$
$

Q1
2015
3,004
166
200
58
(19)
3,409

Q1
2014
$ 2,550
$
24
$
252
$
49
$
56
$ 2,931

YOY Chg
$ (454)
$ (142)
$
52
$
(9)
$
75
$ (478)

Expect Another Strong Year of Free Cash Flow

PENTAIR

Q1 2015 Earnings Release

17

2015F CASH FLOW USAGE & CAPITAL ALLOCATION

FREE CASH FLOW USAGE

ALLOCATION PRIORITIES
Debt Management

$3.3B*

Maintain Investment Grade Rating

~$1.1B

(~$180M)

~$800M
Capacity
at 2.5X
EBITDA

Dividends
39 Straight Years of Increases
Competitive Dividend Yield

Organic Growth
~$2.4B*

Highest ROIC from Funding Organic

Opportunities (Distribution Channel, R&D,
Sales / Marketing, Capital, etc.)

Acquisitions or Share Repurchases

2.6 X
EBITDA
Net Debt at
Q1 2015

1.9 X
EBITDA
Q2-Q4
2015F
FCF

Q2-Q4
Buyback
& Dividends

Forecasted
Net Debt at
YE 2015

$2.4B of Share Repurchases

Since September 2012
Building Acquisition Pipeline Across Portfolio
If Deals do not Materialize, Will Consider
Incremental Buyback

Efficient Capital Allocation Deployment & Opportunities

PENTAIR

Q1 2015 Earnings Release

* Does not Include Pension Liability and Operating Leases

18

Q2'15 PENTAIR OUTLOOK

Sales

Op Income (Rpt.)
Op Income (Adj.)
ROS (Adj.)
EPS (Rpt.)
EPS (Adj.)

Q2'15

Q214

~$1.64B

$1.83B

~$207M
~$247M
~15.1%

$226M
$279M
15.2%

$0.78-$0.79
$0.95-$0.96

$0.81
$1.02

SUMMARY
FX Translation Persists
Residential Seasonal Strength
Core Sales Growth Expected in WQS and TS

Continued Standardization Benefits

Repositioning Actions Accelerated

Q2'15 FINANCIAL OUTLOOK (YoY)

Core Sales Down ~3-4% (FX ~7% Headwind)

Valves & Controls Down ~13-15%

Flow & Filtration Solutions Down ~3-4%
Water Quality Systems Up ~6-7%
Technical Solutions Up ~3-5%

Adj. Op Income ~$247M

Adj. Op Margins ~15.1% Down ~10 bps

Valves & Controls Margins, ~12.5%

Flow & Filtration Solutions Margins, ~12.0%
Water Quality Systems Margins, ~21.0%
Technical Solutions Margins, ~19.5%

Adj. EPS Down ~6%

Tax Rate of ~23%

Net Interest / Other ~$18M; Shares ~182M

Q2 Free Cash Flow Expected to be Seasonally

Strong

Economic Headwinds Persist Cost Actions Being Implemented

PENTAIR

Q1 2015 Earnings Release

19

FULL YEAR 2015 PENTAIR OUTLOOK

Sales

FY15

FY14

~$6.47B

$7.0B

Op Income (Rpt.)
Op Income (Adj.)
ROS (Adj.)

~$913M
~$973M
~15.0%

$852M
$1.02B
14.5%

EPS (Rpt.)
EPS (Adj.)

~$3.55
~$3.80

$3.14
$3.78

SUMMARY
Core Sales Decline as Industrial Recovery
not Anticipated

FY15 FINANCIAL OUTLOOK (YoY)

Core Sales Down ~2-3% (FX ~6% Headwind)

Valves & Controls Down ~8-10%

Flow & Filtration Solutions Down ~4-6%
Water Quality Systems Up ~6-7%
Technical Solutions Up ~2-4%

Adj. Op Income Down ~5%

Adj. Op Margins ~15.0% Up ~50 bps

Valves & Controls Margins, ~14.0%

Flow & Filtration Solutions Margins, ~11.0%
Water Quality Systems Margins, ~19.0%
Technical Solutions Margins, ~22.0%

Adj. EPS Up ~1%

FX Transactional Impact to Moderate in 2H
Productivity and Standardization Remain Strong
Strong Cash Flow & Efficient Capital Deployment

Tax Rate of ~23%

Net Interest / Other ~$73M; Shares ~182M

Free Cash Flow of ~$900M; >120% Net Income

A Pause Year as First Half Market Impacts not Fully Offset

PENTAIR

Q1 2015 Earnings Release

20

APPENDIX
GAAP to Non-GAAP Measurements & Reconciliations

PENTAIR

Q1 2015 Earnings Release

21

REPORTED TO ADJUSTED 2015 RECONCILIATION

PENTAIR

Q1 2015 Earnings Release

22

Q1 2015 CORE SALES GROWTH RECONCILIATION

PENTAIR

Q1 2015 Earnings Release

23

OTHER RECONCILIATIONS
In millions
Reported Operating Income
Adjustments
Adjusted Operating Income
Reported Provision for Income Taxes
Effect of Adjustments on Provision for Income Taxes
Adjusted Provision for Income Taxes

First Quarter Second Quarter Third Quarter Fourth Quarter

2014
2014
2014
2014
$
182.1 $
226.4 $
267.4 $
176.0
18.5
52.9
98.4
$
200.6 $
279.3 $
267.4 $
274.4

First Quarter
2015
$
171.2
$
171.2

Reported Effective Tax Rate

Adjusted Effective Tax Rate
NOPAT
Depreciation & Amortization ("D&A")
Capital expenditures ("Cap Ex")
Total NOPAT, D&A and Cap Ex
Trailing four quarter NOPAT, D&A and Cap Ex

Ending Invested Capital (excluding noncontrolling interest)

Trailing five quarter average invested capital
After Tax Return on Invested Capital

$
$

$
$

40.8 $
2.2
43.0 $

49.4 $
11.6
61.0 $

58.1 $
58.1 $

29.0
31.4
60.4

24.5%
23.2%

23.7%
23.3%

23.2%
23.2%

18.3%
23.5%

154.0 $
63.3
(27.2)
190.1 $
812.4 $

214.2 $
63.4
(32.4)
245.2 $
846.3 $

205.4 $
63.0
(32.9)
235.5 $
874.8 $

210.0
63.0
(37.1)
235.9
906.6

8,663.8 $
8,491.2 $
9.6%

8,293.8 $
8,422.5 $
10.0%

7,774.1 $
8,310.6 $
10.5%

7,557.5
8,135.8
11.1%

$
$

35.3
35.3
23.0%
23.0%

$
$

131.8
60.0
(34.8)
157.0
873.6
7,701.2
7,998.1
10.9%

NOPAT (Net Operating Profit After Tax) is Defined as [(Adjusted OI) X (1 - Adjusted Effective Tax Rate)]
Ending Invested Capital is Defined as [Total Shareholders' Equity - Noncontrolling interest + Long-term Debt + Current Maturities of Long-term Debt + Short-term Borrowings
- Cash and Cash Equivalents]

Free Cash Flow

Net cash provided by (used for) operating activities
Capital expenditures
Proceeds from sale of property and equipment
Free cash flow
EBITDA
Adjusted Operating Income
Depreciation & Amortization ("D&A")
EBITDA
Trailing four quarters EBITDA

PENTAIR

Q1 2015 Earnings Release

$
$
$

(32.9) $
(27.2)
0.4
(59.7) $

427.7 $
(32.4)
2.3
397.6 $

293.4 $
(32.9)
1.4
261.9 $

316.8
(37.1)
9.0
288.7

200.6 $
63.3
263.9 $
1,185.2 $

279.3 $
63.4
342.7 $
1,218.7 $

267.4 $
63.0
330.4 $
1,245.5 $

274.4
63.0
337.4
1,274.4

$
$

(126.2)
(34.8)
2.3
(158.7)

171.2
60.0
231.2
1,241.7

24

REPORTED TO ADJUSTED 2014 RECONCILIATION

PENTAIR

Q1 2015 Earnings Release

25