Pentair's 2011 Investor & Analyst Day

169 Pages·2011·7.85 MB·English

Pentair’s 2011 Investor & Analyst Day
Pentair Investor & Analyst Day
September 14, 2011
New York, NY
TTooddaayy’’ss AAggeennddaa
8:30 – 8:35 Review Agenda Sara E. Zawoyski
8:35 – 9:20 Global Growth…Focused and Forward Randall J. Hogan
9:20 – 9:50 Innovation & Technology Philip M. Rolchigo
9:50 – 10:20 Rapid Growth Todd R. Gleason
10:20 – 10:55 Globalization & PIMS Michael V. Schrock
10:55 – 11:25 Filtration Solutions: CPT Netha N. Johnson
11:25 – 12:00 Accelerating Performance & ROIC John L. Stauch
12:00 – 12:30 Q&A and Closing Remarks Randall J. Hogan
Welcome Investors & Analysts
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Any statements made about the company’s anticipated financial results and 2015 financial outlook,
targets, goals and estimates are forward-looking statements subject to risks and uncertainties such
as the company’s ability to integrate the CPT acquisition successfully; the magnitude, timing and
scope of recovery from the global economic downturn; the strength of housing and related markets;
foreign currency effects; material inflation outpacing our productivity and pricing actions; retail,
commercial and industrial demand; increased risks associated with operating foreign businesses;
product introductions; pricing and other competitive pressures; and the company’s ability to achieve
its long-term strategic operating outlook, targets, goals and estimates, as well as other risk factors
set forth in our SEC filings. All 2015 financial outlook, targets, goals and estimates are based in part
on certain assumptions we make, some of which are referred to in, or as part of, the forward-looking
statements; for example, they assume that the company does not make any acquisitions or
divestitures. We cannot provide any assurance that the assumptions referred to in the forward-
looking statements or otherwise are accurate or will prove to have been correct. Any assumptions
that are inaccurate or do not prove to be correct could have a material adverse effect on our ability
to achieve the results that the forward-looking statements contemplate. Forward-looking statements
included herein are made as of the date hereof, and the company undertakes no obligation to
update publicly such statements to reflect subsequent events or circumstances. Actual results could
differ materially from anticipated results.
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Global Growth
Focused and Forward
RRaannddaallll JJ.. HHooggaann
CChhaaiirrmmaann && CChhiieeff EExxeeccuuttiivvee OOffffiicceerr
Pentair Investor & Analyst Day
September 14, 2011
New York, NY
PPeennttaaiirr –– AA HHiissttoorryy ooff CChhaannggee
Global Water
Tools Largest More Global Filtration
Portfolio of ~25 Business Business, Sales, Acquired
Sold Tools,
Smaller Businesses; Product Focus
Acquired >$1B in A LLeeaaddiinngg MMeemmbbrraannee
Manufacturing
Water Revenues TTeecchhnnoollooggyy Company
Oriented
EEaarrllyy 22000000’’ss MMiidd 22000000’’ss TTooddaayy
Began Lean Expanded Tech ~1177%% ROS
Enterprise in ~55%%of Sales in Product Offerings, ~2200%%of Sales Tech Product
Tech Products Fast Growth Acquired ~$200M in Fast Growth Business
Regions in Sales Region
A Decade of Positive Transformation
5
SShhaarreehhoollddeerr VVaalluuee CCrreeaattiioonn……
OOuuttppeerrffoorrmmiinngg tthhee SS&&PP 550000
bbyy >>220000%% ssiinnccee 22000011
20002001200120022002200320032004200420052005200620062007200720082008200920092010201020112011
PNR S&P 500
A Decade of Differentiated Performance
Total Shareholder Return of PNR from 1/1/01 –8/31/11 vs. the S&P 500 6
JJuusstt 22 YYeeaarrss AAggoo……
22000099 SSttaatteedd SSttrraatteeggyy 22000099’’ss ‘‘TToommoorrrrooww’’
(cid:1) Maintain Growth Investments
(cid:1) Strong Organic Growth
Innovation
–
Developing Markets (cid:1) A Recognized Innovation
–
Leader
(cid:1) Accelerate Cost Reduction
Plans and Improve (cid:1) Globally Balanced
Productivity
(cid:1) Lean & Growth
(cid:1) Continue PIMS
(cid:1) Strong Culture and
Advancements
Expanded Capability
(cid:1) Generate More Cash Flow
“Reshaping Pentair to Emerge Stronger”
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TTooddaayy …… WWee’’vvee IInnvveesstteedd MMoorree iinn GGrroowwtthh
RReesseeaarrcchh && DDeevveellooppmmeenntt IInnnnoovvaattiivvee SSuussttaaiinnaabbllee SSoolluuttiioonnss
~$83
$67
IFB India Xiro Containerized
$62
RO System Anaerobic MBR RO Systems
$57 $58
2.4%
2.2%
2.1%
1.9%
1C.o7%nsistently I nc reasing R&D as % of sales BiogaSs yUsptegmrading Filftorar tSihoanl Sey Gstaesm NeCwPlyT AAcwqauridred
2007 2008 2009 2010 2011e
Onga Rainswitch Intelliflo Spectracool
($M) % of Sales
in Malaysia Variable Speed Pump Narrow
Yielding More Innovation and Sustainable Growth
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…… AAddvvaanncceedd TTeecchhnnoollooggyy CCaappaabbiilliittiieess
= Enhanced Filtration
Ion Exchange
Capabilities
with CPT
Ultrafiltration Reverse Osmosis
• Desal pre-treatment
• Water reuse
• Drinking water Nanofiltration
Membrane Bioreactors • Desalination
• Water reuse • Industrial Wastewater
• Industrial Processes
‘High Eff.
Systems’ Disinfection
Emerging Cooling & Protective Enclosures
UV, Ozone,
Desalination • Advanced Materials
ClO
2 • Anti-explosion Applications
Early Cycle Emerging Maturing Mature
Recent CPT Acquisition Helped Fill In Technology Roadmap
9
…… AAnndd EExxppaannddeedd GGlloobbaallllyy
SSaalleess GGeeooggrraapphhiicc MMiixx
(cid:1) Addressing the
Growing Demands
Fast Growth Fast Growth
of the ‘New’ New
~14% ~19%
World
(cid:1) Broad Array of
Solutions with
Growing Application
Developed
Expertise and
Non-US
Developed
~20% United Regional Focus
United Non-US
States States ~22%
~66% ~59%
(cid:1) More Advanced
Production
Capabilities &
Expanded Capacity
2009 Sales 2011e Sales
$2.7B ~$3.5B
Expecting ~30% of Sales in Fast Growth Regions by 2015
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