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Pentair Investor & Analyst Day

September 14, 2011New York, NY

Pentair’s 2011 Investor & Analyst Day



2

TodayToday’’s Agendas Agenda

Welcome Investors & Analysts

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

10:20 – 10:55 Globalization & PIMS Michael V. Schrock

9:50 – 10:20 Rapid Growth Todd R. Gleason

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



3

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.



Global GrowthFocused and Forward

Randall J. HoganRandall J. HoganChairman & Chief Executive Officer Chairman & Chief Executive Officer





5

A Decade of Positive Transformation

PentairPentair – – A History of ChangeA History of Change

~20%20% of Salesin Fast Growth

Region

~5%5% of Sales inFast Growth

Regions

Expanded Tech

Product Offerings,Acquired ~$200M

in Sales

~17%17% ROS

Tech ProductBusiness

TodayTodayEarly 2000Early 2000’’ss Mid 2000Mid 2000’’ss

Tools Largest

Business Sold Tools,

Acquired >$1B in

Water Revenues

Portfolio of ~25

Smaller Businesses;

Manufacturing

Oriented

Global Water

Business,

Product Focus

More Global Filtration

Sales, Acquired

A Leading MembraneLeading Membrane

TechnologyTechnology Company

Began Lean

Enterprise inTech Products



6

Shareholder Value CreationShareholder Value Creation……

Total Shareholder Return of PNR from 1/1/01 – 8/31/11 vs. the S&P 500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

PNR S&P 500

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

A Decade of Differentiated Performance

Outperforming the S&P 500Outperforming the S&P 500by >200% since 2001by >200% since 2001



7

“Reshaping Pentair to Emerge Stronger”

Maintain Growth Investments

– Innovation – Developing Markets

Accelerate Cost Reduction

Plans and ImproveProductivity

Continue PIMSAdvancements

Generate More Cash Flow

Just 2 Years AgoJust 2 Years Ago……

2009 Stated Strategy2009 Stated Strategy

Strong Organic Growth

A Recognized InnovationLeader

Globally Balanced

Lean & Growth

Strong Culture and

Expanded Capability

20092009’’ss ‘‘TomorrowTomorrow’’



8

TodayToday …… WeWe’’ve Invested More in Growthve Invested More in Growth

Yielding More Innovation and Sustainable Growth

$57$62

$58

$67

~$83

1.7%1.9% 2.1%

2.2%2.4%

2007 2008 2009 2010 2011e

($M) % of Sales

Research & DevelopmentResearch & Development

IFB India XiroRO System

C o n s i s t e n t l y

I n c r e a s i n g R &

D a s % o f s a l e s

Containerized RO Systems Anaerobic MBR

IntellifloVariable Speed Pump

Spectracool Narrow

Newly Acquired CPT Award

Innovative Sustainable SolutionsInnovative Sustainable Solutions

Filtration System for Shale Gas

Biogas UpgradingSystem

Onga Rainswitchin Malaysia



9

Ultrafiltration

• Desal pre-treatment• Water reuse• Drinking water

Ion ExchangeFiltration

Reverse Osmosis

Nanofiltration• Desalination• Industrial Wastewater• Industrial Processes

DisinfectionUV, Ozone,ClO2

EmergingDesalination

Recent CPT Acquisition Helped Fill In Technology Roadmap

Membrane Bioreactors• Water reuse

‘High Eff.Systems’

Emerging Maturing Mature Early Cycle

…… Advanced Technology CapabilitiesAdvanced Technology Capabilities

Cooling & Protective Enclosures• Advanced Materials• Anti-explosion Applications

= Enhanced Capabilities

with CPT



10

Expecting ~30% of Sales in Fast Growth Regions by 2015

…… And Expanded GloballyAnd Expanded Globally

Sales Geographic MixSales Geographic Mix

Fast Growth

~14%

DevelopedNon-US~20%

Fast Growth

~19%

DevelopedNon-US~22%

2009 Sales$2.7B

UnitedStates~66%

UnitedStates~59%

Addressing theGrowing Demandsof the ‘New’ NewWorld

Broad Array ofSolutions withGrowing Application

Expertise andRegional Focus

More AdvancedProduction

Capabilities &Expanded Capacity

2011e Sales~$3.5B



11

……Improved Sales and MarginsImproved Sales and Margins

Lean Enabled … Not Recovery Led

’’0909 – – ’’11 Drivers11 Drivers

14% Sales CAGR; CPTAcquisition Adding 4pts

• Solid Execution

• Strong Fast Growth Regions

Margin Expansion 240bps

• Cost Reductions Yielding Results• Strong Productivity

• Volume Leverage

On Track for Record Profits

and Margins Contingency Plans Ready …

If Market Requires

Sales & ROSSales & ROS

$2.7B$3.0B

~$3.5B

9.6%

11.0%~12%

2009 2010 2011e

Revenue Adj. Operating ROS

CPT

*All Results are on an Adjusted Basis. See Reconciliation to US GAAP in Attached Appendix.



12

…… Accelerated Lean and PIMSAccelerated Lean and PIMS

Safety, Quality, Delivery, Cost and Cash Focus

Developing Top Talent

Prioritizing Investments & Innovation

Building Growth Capabilities

Global Lean Advancements and New Growth Tool

LEANENTERPRISE

LEANENTERPRISE

‘ Ne w Too l ’ in

P I M S Too l k i t

More Per va s i ve,

Ad vanc in g Wa ter



13

Annualized Dividends*Annualized Dividends*

$ 0 . 8 0

$ 0 . 0 1

19 7 6 19 8 0 19 8 5 19 9 0 19 9 5 2 0 0 0 2 0 0 5 2 0 11

Pentair Has Increased Dividends for 35 Consecutive Years*Dividends Adjusted for Splits and Stock Adjustments. All Results are on an Adjusted Basis. See Reconciliation to US GAAP in Attached Appendix.

Free Cash Flow ($M)Free Cash Flow ($M)

Strong Free Cash Flow Conversion Fuels Dividend Growth

Adj. NI FCF in excess of Adj. NI

Free Cash Flow Conversion Consistently>100% of Adj. Net Income

Dividend Payout Ratio >30%

…… Generated Strong Cash FlowGenerated Strong Cash Flow

$207M $212M

>$250M

2009 2010 2011e



14Consistent Strategy and Strong Execution Driving Performance

TodayToday……


A RecognizedInnovation Leader

Globally Balanced Lean & Growth

Strong Culture and

Expanded Capability

20092009’’ss ““TomorrowTomorrow””


A RecognizedInnovation Leader

Globally Balanced Lean & Growth

Strong Culture and

Expanded Capability

IsIs ““TodayToday’’ss”” RealityReality



15Well Positioned in Attractive $70B Market

Water BusinessWater Business …… ~$2.5B Today~$2.5B Today

Filtration/Treatment

~$900M

Pumps

~$850M

Agriculture

~$150M

~$70B

Market

Pool

~$500M

PNR Water SalesPNR Water Sales

Market Growth Rate: ~6%

2011e Geography Mix:~59% US

~22% Non US Developed

~19% Fast Growth Regions*

In Emerging Markets … InfrastructureNeeds; Growing Consumption; andAgricultural Demands

In Developed … Aging Infrastructureand Significant Installed Base

Globally … Improved Efficiency,Conservation and Automation

Market DriversMarket Drivers

Water Sales & ROSWater Sales & ROS

CPT added

~$10B of Market

Opportunity

~$2.4B

~$3.3B

$1.8B$2.0B

10.3% 11.3%

0.14~16% +

~12%

2009 2010 2011e . . . . . . . . . 2015

* Fast Growth Regions include China, Latin America, India, SE Asia, Eastern Europe, the Middle East and Africa

Goal

ROS



16

CPTCPT A Global Leader in Membrane

Technology & Ultrafiltration

2010 Sales: ~$300M

Bolstering High Growth, Technology-Driven Strategy

High Fit AcquisitionsHigh Fit Acquisitions

Hidro FiltrosHidro Filtros A Leader in Point of Use

Filtration in Brazil

2010 Sales: ~$10M

MarketMarket

LeadershipLeadership

Fast GrowthFast Growth

RegionsRegions

ApplicationApplication

ExpertiseExpertise

InnovativeInnovative

TechnologyTechnology

WuxiWuxiExpanding Manufacturing

Presence in China

Vertical Integration



17

Market Growth Rate: ~4%

2011e Geography Mix:~63% US

~24% Non US Developed

~13% Fast Growth Regions

Best Getting Better in Margin … Meaningful Global Opportunity

Technical ProductsTechnical Products …… ~$1B Today~$1B Today

Protective

Enclosures

& Cabinets~$715M

Cooling Solutions

$110M

>$15B

MarketComponents &

Accessories

$165M

PNR Technical Product SalesPNR Technical Product Sales Technical Products Sales & ROSTechnical Products Sales & ROS

Fast Growth

Region Sales

Growing >30%

in 2011

Energy & Infrastructure … to Power &Support Human Development

Industrial … Automation to Drive

Productivity and Serve GrowingMiddle Class

Communication … Greater ConnectivityDemands Everywhere


$1.0B

$0.8B

~$1.3B

~$1.1B

13.0%15.3%

0.185~17%

~20%+

2009 2010 2011e . . . . . . . . . 2015

Systems$100M

ROS

Goal



18

Our VisionOur Vision

Making Significant Progress Towards Vision

A diversified industrial growth company…

A global enterprise and responsible citizen known

for operational excellence, innovation, attracting

top talent and growing by serving customers well…

Delivering superior long-term shareholder value…



19

TodayToday’’ss …… Consistent, Focused StrategyConsistent, Focused Strategy

Well Positioned for 2012 and Beyond

Invest in Innovative Technology& Application Expertise

Taking PIMS to the Next Leveland Leveraging New Rapid

Growth Tool

Continue to Build Scale in FastGrowth Regions

Innovate Around Sustainability,Energy Efficiency and Safety

Strategic PrioritiesStrategic Priorities



20

LongLong--Term AssumptionsTerm Assumptions

Realistic Market Assumptions + Growth Initiatives = Differentiated Growth

What We Are PlanningWhat We Are Planning

Slow Developed Market Growth

Moderate to Strong Developing Market Growth

New “Unlevered” Economic Base

11

22

33

Developed

Fast GrowthRegions

+20%

Organic Growth

+9%

+10%

+20%

+3 – 4%

+6 – 7%

’’0909 – – 1111

ActualsActuals (ex CPT)(ex CPT)

’’1111 – – 1515

AssumptionsAssumptions

Innovation, New Markets

& Lean Continue to DriveGrowth in Developed

Growing ‘New’ New WorldNeeds ... PNR WellPositioned

Acquisitions Play KeyRole in Technology & GeoExpansionCPT Acq. Impact ~4% ~1%

+ + +

(5 months in 2011)



21

ROICROIC

Adj. Operating MarginAdj. Operating MarginSales ($B)Sales ($B)

Financial Performance & LongFinancial Performance & Long--term Goalsterm Goals

Growth + Productivity Focus Yielding Profitable, Sustainable Results

$2.7$3.0

~$4.6

~$3.5

2009 2010 2011e* . . . . . . . . 2015

9.6%11.0%

~16%

~12%

2009 2010 2011e* . . . . . . . . 2015

~7% CAGR

’11 – ‘15

2015 Target

~16%

Adj. EPSAdj. EPS

$1.47

$2.00

>$4.50

~$2.42 -

$2.50

2009 2010 2011e* . . . . . . . . 2015

6.2%

8.2%

~15%

>8.5%

2009 2010 2011e* . . . . . . . . 2015

>15% CAGR

’11 – ’15

2015 Target

~15%

*All Results are on an Adjusted Basis. See Reconciliation to US GAAP in Attached Appendix.

Goal GoalGoal Goal

Goal Goal



22

The HeadlinesThe Headlines ……

Mega Trends Remain Unchanged…

TodayToday’’s Worlds World…… Our End MarketsOur End Markets

Robust Fast Growth Regions

Steady Industrial Europe Mixed

Challenged US Municipal

and Consumer … >80%US Residential is Replacement

Contingency Plans Definedand Ready if Needed

Strong Execution onGrowth Initiatives

Strong Execution onGrowth Initiatives



23Trends are Undeniable…

Global Mega TrendsGlobal Mega Trends

WaterTechnicalProducts

Water & Tech Prod

Innovation

Water & Tech Prod

Efficiency &

Sustainability

Water

Water Scarcity

Infrastructure

Population & Wealth of

“New” New World

Food

Globalization

Energy

Water TechnicalProducts

Water & Tech Prod

Health, Safety &

Security



24

U.S Residential

23%

Non-U.S.Residential

12%

Agriculture 4%

Commercial11%

Infrastructure10%

Industrial40%

2011e Sales2011e Sales

by Verticalby Vertical

Sales: ~$450M

Beverage, Energy & Med.

Filtration (~1/2); Pumps (~1/2)

Industrial

Sales: ~$150M

Ag/AquacultureAgriculture

View by VerticalView by Vertical

U.S.

Sales: ~$70M

Infrastructure

Sales: ~$390M

Industrial

Mega Trends Directly Align with Pentair Portfolio

Fast Growth

Sales: ~$215M

Communications(incl Industrial)(incl in Comm’l)

Sales: ~$150M

Foodservice

Water Technical Products

Infrastructure

Sales: ~$300M

Reuse &Desalination (~1/2);Large Pumps (~1/2)

Vertical Highlights Vertical Highlights

(incl Commercial)

Energy

Sales: ~$115M

(incl Industrial)



25

2000 2030

Emerging Global Middle ClassEmerging Global Middle Class

Expanding Middle Class Driving Resource Demand

52

35

14 13

10 8

98

69

2027

1411

China India Brazil Indonesia Turkey Mexico

2010 2015

120 Million More Middle Class120 Million More Middle ClassHouseholds by 2015Households by 2015 …… PuttingPutting

Additional Strains on Water,Additional Strains on Water,Food and EnergyFood and Energy

> 7 0 % P r e d

i c t e d G r o w t h2 0 10 - 2 0 15

Growing Middle Class HouseholdsGrowing Middle Class Households (millions)(millions)

Sources: Middle Class Data: EIU, PREI Research, Pipal Research analysis / Residential Markets: U.S. Bureau of the Census, National Bureau of Statistics of China / Consum tion: 2030 Water Resources Grou

2000 2030

406 ̂15 btu

4.5 T m 3

6.9 T m 3

735 ̂ 15 btu

>50%

Significant Increases in Global ConsumptionSignificant Increases in Global Consumption

>80%

prediction

prediction

Energy

Water



26

Fast Growth Region OpportunityFast Growth Region Opportunity

Stronger Capabilities Fueling >20% CAGR in Fast Growth RegionsSource: IMF, Pipal Research analysis

GDP GrowthGDP Growth

4.5%

4.5%

4.6%

4.6%

4.8%

7.5%

8.2%

9.6%

3.8%Poland

S. Korea

Brazil

Mexico

Turkey

Russia

Saudi Arabia

India

China

~$1.3BGoal2015

~$0.3B2006

Fast Growth Region SalesFast Growth Region Sales

~$0.7B2011e



27

Technology Innovation Plays a Major Role inClosing the Gap

Commercial & Industrial Efficiency (Reuse)

and Desalination are Key Newly Acquired CPT Provides Technology of

Choice for Pretreatment in Desalination andMembrane Bioreactor Solutions

Water ScarcityWater Scarcity

Technology Plays a Major Role in Closing Water Gap

Existing Accessible,Sustainable

Water Supply

2030 Water Demand

40% Water Gap

Economic Growth & Development = GrowingDemands for Water Supply

Agricultural Demand, Water Consumption

per Capita & Industrialization DrivingDemand

“Business as Usual” is Insufficient to Closethe Water Gap

2030 Water Resources Group Report

Strategic Focus on SolutionsStrategic Focus on SolutionsChallengeChallenge

GWI. Global Water Market 2011

Desalination

Reuse

0

3

6

9

12

15

1990 1994 1998 2002 2006 2010 2014

A n n u a l a d d i t i o n a

l c a p a c i t y

( m i l l i o n c u b i c m e

t e r s / d a y )



28

Water Reuse SolutionsWater Reuse Solutions

Hospitality

Ritz Carlton Hotel, Bangalore, India

$3B+ Water Reuse Market Today … And Rapidly Growing

Breweries

Polar Brewery, Caracas, Venezuela

Venues

Target Field, Minneapolis, MN, USA

Shopping Centers

WTC Shopping Mall, Sao Paulo, Brazil

Dairy

Daisy Brand, Garland, Texas, USA

Food & Beverage

Nestlé, Cabuyao, Philippines

Water Reuse is Emerging EverywhereWater Reuse is Emerging Everywhere ……

System Integration Expertise Plus Application KnowSystem Integration Expertise Plus Application Know--How Position Pentair WellHow Position Pentair Well



29

V e r t i c a l s / G e o

Beverage ofthe Future

Products

Protective Enclosures forElectric Vehicle

Charging Stations

Aquaculture

Megablock

MBR

Anaerobic MBR

Nanofiltration

Precision Ag

Leverage CorePortfolio of

Products & Solutions

Across Channels

Gas Recovery

RO Skids/ Containerized

Innovation, Efficiency & SustainabilityInnovation, Efficiency & Sustainability

Innovations Serve Exciting Growth Markets

POU Filtration,Specific for FastGrowth Regions

Cooling

Eco-Select VariableSpeed Pumps

E x i s t i n g

N e w

Existing New

A Few Examples of Innovation ….

Our Customers ExpectSmart and EfficientSolutions that areEconomical, Renewableand Reliable

PNR’s Portfolio Well

Positioned WithMembrane Technology,CO2 Systems, Valves,Vessels, Control &

Measurement, Pumps …



30

Health, Safety & SecurityHealth, Safety & Security

Providing Technology That Keeps People Healthy, Safe & Secure

Safety & SecuritySafety & SecurityHealthHealth

Enclosures for systems that monitor radioactive and nuclear materials

Supporting critical railway infrastructure in China with

protective enclosures and control panel cabinets.

Providing airports with cabinets that housesensitive electronics, ensuring passengerscan reach their destinations safely

Enclosures for security applications at Ground Zero in

New York.

Point of Use / Point of Entry filtration providing safe, clean water

• Significant industrial and municipal wastewater

pollution challenges water supply.• <40% of municipal wastewater is treated, and

often not to acceptable standards.

• Emergence of a large middle class (from 4% ofpopulation in ’05 to >50% in 2030), will drivehousehold water consumption higher.

Rising Water Quality Challenges

Water Quality Source: 2030 Water Resources Group Report

In China, for example

Counter TopModel

UF and Advanced Carbon

RO and/or UF with Carbon



31

Pentair is Committed to SustainabilityPentair is Committed to Sustainability

Recognized As a Leader in Sustainability and Humanitarian Efforts

Received 2011 International Corporate Award;Recognized as a Global Leader and Citizen forProject Safewater Initiative

Recognized for Global Water Quality ReliefEfforts

Fifth Annual Million Shades Of

Green Gala

2011 Environmental Business of the Year;Recognized for Innovation and SustainableSolutions at Twins’ Target Field

Recognition In Our Communities … And Globally

Establishing Global Leadership Position in Water Issues

Project has demonstrated that solutionsare cost-effective

In Honduras alone, Project Safewater

has helped 300,000 people gain accessto clean, safe water

www.ProjectSafewater.com



32

’’0909 – – ’’1111ee

Sustainable, Profitable GrowthSustainable, Profitable Growth

’’1111 – – ‘‘1515

MarginExpansion

RevenueCAGR

Leverage Fast Growth

InvestmentsServe/Expand Our

Installed Base

Accelerate Systems &Innovation Capabilities

Infuse Rapid GrowthProcess into Culture/PIMS

Continue LeanAdvancements

~14 %(incl 4 pts CPT)

+120 bps / year

> 100% NIConversion

FCFGeneration

Adj. EPSfrom cont. ops

CAGR

> $4.50 Earnings Power and 15% ROIC Goals by 2015

Goals

~30%

~7%( incl ~1 pt CPT)

+100 bps / year

>15%

> 100% NIConversion



33

What YouWhat You’’ll Hear Todayll Hear Today……

Focused and Forward Thinking on Growth

• Today’s Portfolio Reflects Technology, Innovation andFast Growth Region Strategic Focus

• Mega Trends Provide a Broad Array of Opportunity

• Execution on Growth and Productivity Initiatives areStrong, Focused and Prioritized

• Pentair Integrated Management System FuelsOperational Excellence and Growth

• Pentair is Well Positioned to Deliver Profitable,Sustainable Growth & Shareholder Value



Building A Sustainable

Innovative Platform

Philip M. Rolchigo, PhDPhilip M. Rolchigo, PhDVP, Technology VP, Technology





35

• People

– A Strong Organization With ExpandingGlobal Capabilities & Technical

Competencies

• Process

– A New Lean, Customer-Focused NewProduct Development Process

– A Solid Pipeline Of New Products

• Technology – Investments In High Growth Technology

Platforms To Transform Our Future

Today’s Discussion …

Establishing Pentair’s ‘Thought Leadership’ Position

Building A Sustainable Innovation PlatformBuilding A Sustainable Innovation Platform



36

• People


Competencies

• Process










37

Building Key Competencies To Drive GrowthBuilding Key Competencies To Drive Growth

0

50

100

150

00

50

00

50

00

Technical

Products

Flow

Technologies

Filtration

Technologies

Well Positioned To Innovate Across All Pentair Platforms

Technology Resources(Indexed to 2006)

Key Takeaways

Tech Products - Rapidly Globalizing

– Building Capabilities In China, India & Latin

America Flow Tech - Advancing & Globalizing

– Strengthening Advanced EngineeringCapabilities In Europe & India

– Building Design & Manufacturing Capabilities

In China

Filtration Tech - Advancing & Globalizing

– Continue To Advance Strong MembraneScience Competencies

– Continue To Build & Globalize Total Solutions& Systems Capabilities

– Building Strength In Controls

2006 2011 2015e

Technology Resources up 45%Since 2006; Expected to Increase

Another 25% by 2015



38

Creating Value In Fast Growth RegionsCreating Value In Fast Growth Regions

Advancing Global Capabilities Faster Than Costs

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2015

2011

20062006

2011

“Idea To Reality” Capabilities (% Total Headcount)

Sustaining Eng - 68 %

New Product Eng - 75 %

0 20 40 60 80 100 120

2015

2011

20062006

2011

“In Region For Region” New Product Focus (% Total Headcount)

2015e

Global Support - 94 %

In Region - 45 %

2015e

33 %

6 %

72 %

32 % India Design Center Shifted SignificantlyFrom Sustaining To New Product

Development Focus China Design Center Supports Both New

Product Development & LocalManufacturing Activities

India Targeting > 25 % “In Country”Focus By 2015

China Maintaining Its Already StrongFocus Above 70 %



39

India Design Center (IDC)

– Engineers for All GBU’s co-located

• Expertise in Engineering Analytics

• Electronics & Controls

• Water Treatment System Design – ‘State of the Art’ NPD Labs

• Rapid Prototyping (2011)

• Electronics Development & Testing (2011)

• Pump Development & Testing (2011)

• Filtration Lab (planned 2012 - 2014)

China Design Center (CDC)

– New Product Development

• Melt Blown & Carbon Filtration

– ‘State of the Art’ NPD Labs

• Energy Application Lab

• Analytical Capabilities Mirroring PRF

• Filtration Lab I, II, & III (‘08, ‘10, ‘12 planned)

Energy Applications Lab

Product Development & Analytical Testing Lab

India Design Center China Design Center

In Region For Region R&D Facilities … A Key To Growth

Investing To Support Global CapabilitiesInvesting To Support Global Capabilities

>30% EngineeringResources in

Fast GrowthRegions



40

““In Region, For RegionIn Region, For Region”” …… IndiaIndia

Low Cost, High Functioning Microprocessor ControlPanel For Pretreatment & RO Systems

50% Of The Cost & Size Of a Traditional PLC Design

Discover To Deploy In 6 Months

Standard Designs To Meet AggressivePerformance & Cost Targets

– Standard Pretreatment Designs IncludingMultimedia, Water Softening & Aqualine

Systems For Flow Up To 500 GPM – Standard RO Systems With Capacities

From 1 to 250 GPM

Standard Pretreatment & RO Systems

Smart Controller For RO Systems

Nearly Doubled New Product Launches In Fast Growth Regions In Last 2 Years



41

• People


Competencies

• Process










42

Pentair Integrated Management SystemPentair Integrated Management System





LEANENTERPRISE

LEANENTERPRISE

Extending our Lean Principles & Discipline To Growth

3D E bli I i Wi h A P



43

3D3D……Enabling Innovation With A PurposeEnabling Innovation With A Purpose

Development DeploymentDiscovery

Funnel

Product Development

RAPID

&

Technology

Research A Lean New Product Development Process

– “Customer” Focus Throughout Entire Process

– Portfolio Analysis Scorecards To ID Best Opportunities

– Standard Work For Best Practice Sharing

– Input, Process & Output Metrics To Drive Improvements

Web Based Workflow To Facilitate Process Speed

Faster Cycle Times … Increased Innovation … Improved Quality

P f li A l i A Cli k AP f li A l i A Cli k A



44Prioritization Of The Right Investments

Portfolio Analysis A Click AwayPortfolio Analysis A Click Away

Filli Th F l T D i Vi liFilli Th F l T D i Vit lit



45

DD

0

50

100

150

200

250

300

350

400

450

500

Q1 2010 Q3 2010 Q1 2011 Q3 2011e

Targeting +2 Pts Of Growth Annually From New Products

Project Count

Filling The Funnel To Drive VitalityFilling The Funnel To Drive Vitality

Projected Revenue

DiscoverDiscover (Garage)

DevelopDeploy

Launch

New Product Pipeline

Growing At A Steady Pace

Discover

~$1.5B

Develop

~$0.7B

Deploy~$0.3B

> $1B of New Product Ideas

in Current Pipeline

New Product & Solutions RoadmapNew Product & Solutions Roadmap



46

Filtration

Technologies

Flow

Technologies

Beverage

Solutions

Advanced Treatment

Systems

New Product & Solutions RoadmapNew Product & Solutions Roadmap

Recent Launches Coming Soon

Launch Rates Up +50 % In Past 3 Years … Some Exciting Examples

Water & Energy Efficiency Solutions…A Key Focus

A Secret for Now…

A Secret for Now…

A Secret for Now…

A Secret for Now…

A Secret for Now…

A Secret for Now…

A Secret for Now…

A Secret for Now…

A Secret for Now…

A Secret for Now…A Secret for Now…

A Secret for Now…

Helical Membrane Air Dryer

SmartRO Controller

HomeSpring POU UF

Variable Speed APLEX

Low Footprint UF Pump

IntelliFlo 2.0

Beer Membrane Filter

365 IT Dairy Valve

Spirits On Tap

MegaBlock MBR

Low & High Brackish RO Systems

Anaerobic MBR

Filt ti T h l iFiltration Technologies



47

Dry Air Is Critical To Proper Functioning Of Industrial & Medical Equipment

Moisture In Compressed Air Systems Leads to MicrobiologicalContamination, Process Upsets and Equipment Failure

Desiccant Air Drying Technology Has A Number Of Drawbacks – Poor Energy Efficiency & Unreliable In Small Flow Applications

– Potentially Hazardous Microbiological Contamination For Medical/Dental Applications

“The Challenge”

Innovative Membrane Technology Enables Safe, Efficient Performance

“Pentair Innovation”

New FluidPro Membrane Air Dryers

– Proprietary Composite Hollow Fiber Membrane

• High Material Strength To Ensure Reliability

• Surface Chemistry Engineered For High Vapor Transfer Eff.

• Microbiological Barrier

– Patented Helically Wrapped Hollow Fiber Module Design

• Highest Air Efficiency in the Industry

• Compact Design

Filtration TechnologiesFiltration Technologies

Flow TechnologiesFlow Technologies



4848

The Oil & Gas Market Is Growing Rapidly

– But Requires A High Pressure, Variable Flow Source Of Water For SteamActivation, “Fracking” & Reinjection

Minimizing Downtime Is Critical – Complex Pump Arrays To Manage Variable Flow & Back-up Typical

– Complexity Impedes Serviceability

“The Challenge”


Innovative High Efficiency Design … Increasing Process Reliability

APLEX High Pressure, Variable Speed Piston Pump

– Pressure Lubrication System

• Allows Variable Speed / Flow Operation

– Superior Serviceability• Crankshaft Bearings Serviceable w/o Crankshaft Removal

• Fluid End Can Be Serviced Without Removing Piping





4949

“The Challenge”


System Specific Pump Designs

– Footprint Reduced By 10 to 20%

– Energy Reduced By 5 to 15 %

Current Applications In Ultrafiltration (UF),Membrane Bioreactors (MBR) &Microfiltration (MF) Systems


Filtration Systems Use Catalogue Pumps Designs

– Suboptimal System Energy Efficiency

– Increased Use Of Cleaning Chemicals Due To Layout Constraints – Suboptimal Footprint & Use Of Valuable Mfg Space

Combined Flow & Filtration Expertise … Innovative Advanced Systems

Still Verifying

Beverage SolutionsBeverage Solutions



505050

Diatomaceous Earth (DE) Filtration

– The Legacy Method For Beer Filtration Prior To Bottling

– Health & Safety Risks of DE

– Cost of Solid Waste Disposal

Shelf Life & Taste Stability Are Key Parameters That Can Drive Brewery Profits

“The Challenge”


+25 Full Scale Reference Sites … > $ 20M Annual Opportunity

Membrane Beer Filtration System

– Proprietary Hollow Fiber Membrane

– Integrated System Design

– Lower TCO Than DE Filtration – Improved Beer Taste Stability & Shelf Life

– Increased Beer RecoveryOptiBMF





5151

Mixed Drinks Drive Higher Profits Than Beer, But…

Profits Offset By Bartender Variability

– Speed, Quality, Consistency & Integrity Auto Dispense Systems For Mixed Drinks Do Not Exist

“The Challenge”

Innovation In Food Service … Lower OpEx & Increased Profits

Spirits On Tap System

– Programmed Formulas

• Consistent Drink Quality

• Improved Speed of Service

• Controlled Pour Volume and Ratio

– Transparent Operations



Spirits

Advanced Water Treatment SystemsAdvanced Water Treatment Systems



525252

Demand For Water Reuse Increasing Due To Water Scarcity And RisingWater/Wastewater Discharge Costs

Municipalities Seeking Retrofit Opportunities To Expand Capacity And

Increase Revenue

Best Available Solutions Include Membrane Bioreactors & Ultrafiltration,But Retrofits Often Complex & Costly To Operate

“The Challenge”


Innovative Integrated Design Enables Efficient Performance

MegaBlock Membrane Bioreactor

– Compact, Integrated Pump & Membrane DesignMinimizes Footprint & Simplifies Retrofit Implementation

– Best In Class Performance• Lowest TCO Including Energy

• Leading UF Membrane High Quality EffluentMegaBlock





535353

Demand For Industrial Water Reuse Accelerating Due To Rising Water &Wastewater Costs & Regulatory Pressures

Many Industrial Applications Require Anaerobic Bioreactors To Digest Waste

Anaerobic MBR Not Easily Applied To Complex, Anaerobic Reactors

“The Challenge”


Innovative Membrane Technology Enables Efficient Performance

Anaerobic Membrane Bioreactor

– Proprietary Cross Flow Membrane Technology

– Improved Anaerobic Efficiency & Energy Recovery

• High Levels Of Methane Production (up to 30% )

Makes Energy Recovery Economical

• Higher Quality Water For Reuse(> 98% COD Reduction vs. < 90% w/ Conventional ) Anaerobic MBR





54

• People


Competencies

• Process

– A New Lean, Customer-Focused New

Product Development Process


• Technology

– Investments In High Growth TechnologyPlatforms To Transform Our Future




Global Water & Wastewater MarketsGlobal Water & Wastewater Markets



55

Growing Market Opportunities … Informing Our Technology Roadmap

Water Markets

• Global Opportunity With Emerging Markets Growing 3-4Pts Faster Than Developed

• Deteriorating Source Water Quality Driving Point OfEntry (POE) Industrial Treatment

• Scarcity & Tightening Discharge Regulations DrivingOn-site Wastewater Treatment & Reuse…saving Energy& Improving Supply Predictability

Source: Global Water Intelligence Report June 2007, 2010 & Fredonia Group 2009

Global Water & Wastewater MarketsGlobal Water & Wastewater Markets

2009 2016

Water Reuse

Commercial & Industrial Desal

Muni Desal

Industrial Water Treatment

> 15 CAGR

$ 15 B

$35 B

Water Technologies Market ~ $ 5B (2009)

w/ >10% CAGR Through 2016

0 0.5 1 1.5 2 2.5 3

C&I Systems

Muni 'Mega 'Systems

UF & MBR

UV

RO Membranes

Conventional Pretreatment

Ozone

Desal Pumps

Energy Rec Devices

Membrane Vessels

Largest &

Fastest

Growing

Technology

Markets

Significant

Opportunities

To Leverage

PNR’s Core

Competencies

2009 2016

2009 2016

Water Reuse

Commercial & Industrial Desal

Muni Desal

Industrial Water Treatment

> 15 CAGR

$ 15 B

$35 B

Developing A Leading Technology PortfolioDeveloping A Leading Technology Portfolio



5656


Reverse Osmosis

NanofiltrationDesalinationIndustrial WastewaterIndustrial Processes

UltrafiltrationDesal pre-treatment

Water reuseDrinking water

DisinfectionUV, Ozone, ClO2

EmergingDesalination

High Growth Technologies + Multiple Applications Accelerate Growth

Membrane BioreactorsWater reuse

‘High Eff.

Systems’



Investing Here!

ProElite Water Softening PlatformProElite Water Softening Platform



5757


The ‘Best in Class’ Design … But The Challenge Not Fully Addressed

Patented Design Enables ‘Best In Class” EfficiencyMinimizing Salt usage

User Friendly Operation Due To Advanced Controller &

Remote Monitor

Stylish, Unique Design

gg

“Soft” Water Is Critical To Energy Efficient Operation Of Household Appliances,And Commercial & Industrial Equipment

Ion Exchange Water Softening Technology Is Mature But Has Many Drawbacks

– The Process Increases The Sodium Content In The Water Treated

– Concentrated Salt Solutions Discharge To Waste During Operation

– Bans exist In 4 States & > 60 Communities

“The Challenge”




5858


Reverse Osmosis




DisinfectionUV, Ozone, ClO2EmergingDesalination

Capacitive Deionization … One Of The Most Promising New Desal Technologies


‘High Eff.

Systems’


Developing A Leading Technology Portfoliop g g gy

Investing Here!

Investment In Capacitive

Deionization Technology

How Capacitive Deionization WorksHow Capacitive Deionization Works



59

Step 1 - Desalination

– Desalination & Softening Occur Simultaneously

– A Highly Scale Resistant Process Due To The

Positive & Negative Ions Being Collected Separately

– Energy Stored During Desalination

Step 2 - Regeneration – Salts Discharged When Electrical Potential

Removed

– During Discharge Ions Collected In A Small Sweep

Volume Enabling High Net Water Recovery

– A Highly Energy Efficient Process Enhanced ByEnergy Recovered During discharge

A Potential RO Market Disruptor With Many Applications

o Capac t e e o at o o sp

Saltless Water Conditioning SystemSaltless Water Conditioning System



6060


Changing The Game With A Leading Technology Platform

g yg y

Simultaneous Softening & Desalination

– Superior Quality, Low Sodium Water for

Process & Drinking Applications Chemical Free Operation &

NO Salt To Haul

“Smart” Controls For Efficient,User Friendly Operation

Proprietary To Pentair With 9 PatentsPending

Launch Planned For 2H 2012

A Significant Opportunity – +1 Million Softeners Sold Annually




6161


Reverse Osmosis




DisinfectionUV, Ozone, ClO2EmergingDesalination

Membrane Technology…The Innovative Core Of Many Solutions


‘High Eff.

Systems’


p g g gyp g g gy

Establishing PNREstablishing PNR’’ss

Leadership Position inLeadership Position in

Membrane Technology!Membrane Technology!



6262

Membrane Technology VideoMembrane Technology Video

Membrane Separation SpectrumMembrane Separation Spectrum



63

Micro

Filtration

Ultra

Filtration

Nano

Filtration

Cryptosporidium, Giardia, Bacteria, Human Cells

Viruses, Colloidal Particles, Oil Emulsions

Proteins & Large Complex Organic Molecules

Dyes, Pesticides, Herbicides,

Pharmaceuticals, Divalent Salts (Hardness),

Some Heavy Metals

Heavy Metals, Monovalent Salts

Water

Membrane Technology Enables Numerous Commercial Applications

Advanced Membrane Performance



64

• Longer Membrane Life• Lower Energy Requirements

• Improved Separation Efficiency• Low Fouling & New Applications

Material Science is the KeyMaterial Science is the Key

Material Science…The Key To Continued Innovation

• Material Strength• High Porosity

• Pore Size Control• Surface Chemistry Control

Creating

Real ($$)

Value

Advanced Manufacturing TechnologyAdvanced Manufacturing Technology



65

Diameter Control Flow & Porosity Control

Fiber Strength Control Uniform Pore Distribution Control

The Key To Quality … How Do We Do It ? … A Secret Forever

0

0.01

0.02

0.03

0.04

0.05

0 10 20 30 40 50 60 70

rp (nm)

d j / d r p PESU Norit

PVDF Zenon

CPT

Competitor

Pentair Technology Driving GrowthPentair Technology Driving Growth



66

A Strong Global Technology Team WithAn Increasing Focus On “In Region, ForRegion” Innovations

Gaining Traction With 3D, Our NewLean Product Development Process

A Solid Portfolio Of New Product IdeasIn the Pipeline To Drive Growth

An Established Leadership Position InFlow, Filtration & MembraneTechnologies

Pentair’s Leadership Position Strengthening Everyday

TomorrowToday

Continued Focus On Globalization &Region Specific Innovation

A Steady Stream Of Innovative NewProducts & Growing New ProductVitality

Continued Investments In ProprietaryHigh Growth Technology Platforms

– Advancing Our Membrane & FiltrationTechnologies

– New, High Impact Applications

– An Advancing Disinfection Platform



Rapid Growth ProcessBuilding Differentiated Growth Capabilities

Todd R. GleasonTodd R. GleasonVP, Marketing & Strategy VP, Marketing & Strategy


September 14, 2011

New York, NY

Cultural Transformation



68

Investing to Also Transform “Growth Mindset”

Continuation of our cultural transformation …

From

Decentralized Businesses

To

Global Businesses &Global Processes

(e.g. PIMS, Talent Management)

From

Mostly U.S. Based Business

To

Truly GlobalCompany

(More than 40% of Sales Outside U.S.)

68

Pentair Integrated Management System



69

Satisfying Customers Through Lean

Discipline in Talent Management

More Product Innovation

Growth Capabilities

Building On Our Lean Principles and Growth Discipline

LEANENTERPRISE

LEANENTERPRISE

Adding Growth To ToolkitAdding Growth To Toolkit (Introduced 2010)(Introduced 2010)



70

• Growth Mindset

– How We Identify Growth Opportunities

– How We Are Positioning For Growth

• Implementing World-class

Process – Consistent / Executable Methodology

– Top-Down / Bottom-Up Commitment

– Global Deployment

– Drive & Monitor Results

Taking Growth From A Game of Luck To A Game of Skill70

Rapid Growth Process: Introduced in 2010



71

Growth as a Game of Skill … Not Chance71

Develop, Test and Refine

Growth Initiatives

Develop, Test and Refine

Growth Initiatives

33

Generate New

Growth Concepts

Generate New

Growth Concepts

22Define Growth

Strategy &Priorities

Define Growth

Strategy &Priorities

11Select and Resource

Growth Initiatives

Select and Resource

Growth Initiatives

44

Execute on Growth Initiatives

Execute on Growth Initiatives

55

Monitor Results

Monitor Results

66

Price UniquelyBetter

Product

Hassle-FreeResults

Expertise

Costs Benefits

Products“What we

sell”

Service“How we do business”

Offer Innovation Go-to-Market Innovation

Customer / Growth

Rapid Growth Process

Management System Tuned for Growth

(Perf. Management System, Planning, Talent Development, Values/Norms, Other)

High Level Overview



72

efficient Prioritization of key

growth opportunities based on granular

market details

Priority 1

Example

Fast Growth

MarketsPriority 3

Influence

Each Other

Influence

Each Other

11 22 33

evaluate growth Concepts to

help “inform” priorities and determine

best initiatives

Funnel of Ideas Funnel of Ideas Funnel of Ideas

Alpha Test concepts to “prove”

Initiatives before we strongly invest

India Residential

Water

i2

• Significant Need

• Retail & Distribution

• Ready To Move Quickly

Initiative 3i3

Ensure Priorities Aligned … Move Fast on Initiatives72

Rapid Growth Process: “The Foundation”



737373

Numerous RGP Activities Creating Growth Traction

• Methodology: Established “Pentair” Process

• Leadership: Global Growth Council

– Each Business & Function Represented

– Each Business & Region Promoting Rapid Growth Leaders

• Education: 500 Employees Trained Across Pentair

– Each Business & Corporate Function & Each Region (From KC to Suzhou)

– Online Training Rolling Out Q4 2011

• Global Communications

– Intranet Leadership Messaging & Best Practice Case Studies

– Lobby / Facility Posters• Recognition: Rapid Growth Award at PNR Global Leadership Meeting

Granular Market Segmentation



74

Drilling Down Into Each Major Market & Geography

Granular Market Knowledge

• Develop growth strategies ongranular view of markets

Growth Industry?

• Most industries have mature segments … & … granular

growth pockets

“Megatrends”

• Positioning to mine the best

opportunities in megatrends

Less granular More granular

Example:

~ 7 MillionRestaurants in

China

“Middle ofPyramid” Offers

Most Growth

74

Strategic Planning Ensures We Get In Position



75

Strategy Process Identifies New / Emerging Trends

Markets or Vectors

Maturing /Steady-State

Declining(Little-to-noInnovation)

Rapid Decline(Commodity or

Replaced)

AcceleratingGrowth

New / Emerging

A) Cyclical Growth

B) Established

Competition

C) “Traditional”

Strategic Plans

Surf The Wave

Get In Position

75



Example: Global Vertical



78

India

• $725M Size

• 12% Growth

Rapid Growth Process Provides The Tools … The Answers

Where To Start?

What Products?

Which “Region” Offers Best Growth?

How Can We Win?

How To Best Utilize Limited Resources?

78

Rapid Growth Tools



79

Punjab

Uttaranchal

Himachal Pradesh

UttarPradesh

Madhya Pradesh

Rajasthan

Delhi

Haryana

Chandigarh

Jammuand Kashmir

Bihar

Meghalaya

Sikkim

Tripura

Manipur

Mizoram

Assam

Arunachal Pradesh

Nagaland

Tamilnadu

AndhraPradesh

Chattisgarh

OrissaJharkhand

West Bengal

Karnataka

Goa

Maharashtra

Lakshadweep

Kerala

Dadra & Nagar Haveli

Gujarat

Daman & Diu

Pondicherry

Maharashtra Region

• Opportunity: $27M In One ResidentialWater Category

• Growth Rate: 10%

• Competition: Medium (Currently 5)

• Product: We Are Well Positioned

• Tested Offering in Location

• Customer Preference For NewTechnology

• Standardize Our Current Systems

Alpha Tests – 90 Day Duration

Results: Know Where To Focus and What To Focus On …

Region / State Metric Product 1 Product 2 Product 3

Total Market $ 1,440 $ 2,700 $ 900

Annual Growth 10% 10% 15%

Pentair's Share X% X% X%

Total Market $ 1,500 $ 1,125 $ 400



Total Market $ 1,320 $ 1,100 $ 308



Total Market $ 1,020 $ 1,530 $ 510



Delhi/NCR

Tamil Nadu

Gujarat

Maharshtra / Goa

79

Rapid Growth: Early Results (Examples)



8080

Already Yielding Revenue Growth … Tracking $70M+

Point of Use / Point of Entry

• Identified ~ $35M of New GrowthOpportunities for 2011 – 2013

Rural Water Solutions

Retail Solutions

Packaged Products / Systems

A Few Examples:

Agriculture

• Identified ~ $35M of New GrowthOpportunities in Agriculture

One Example: US-Ag. Pumps / Systems

• 2 Major US Segments (Previously

Limited PNR Content) • Alpha Test: Service & Delivery Model

• Markets: Successful Tests Will YieldRapid Deployment To Other Markets

• Results: Tracking Toward ~$2M 1st

Yr. with More to Come

Filtration

Rapid Growth: Early Results (Examples)



8181

Early Wins and Key Learning's In Exciting New Markets

Global Aquaculture Oil & GasRearing of fish in controlled environments

• Need for Global Protein Real & Exploding

• Fish Will Likely Be Chosen Source

– Aquaculture demand will besubstantial as the “Void” is filled

– Expected $40B InstallationInvestment (by 2030) … Could be150,000 or more Facilities

• Fragmented Industry Provides Oppt’y

• Alpha Test: Pentair go-to-market strategy

• Approach: Rapid VOC, equipment &economics validation … Mkt’g Approach

• Progress: Visiting Dozens of Fish Farms

• Progress: PNR product pipeline supportsaquaculture industry needs

• Shale gas expected to account for 45% of USnatural gas by 2035, a 3X increase to 2010

• For shale gas to be marketable, it must bepurified or “sweetened”

• Sweetening method at a gas plants requires a #of large towers as part of an Amine Unit

Shale Gas Opportunity

Liquid-LiquidContacting

(~$6M Rev in ‘11)

Liquid-GasContacting

(~$20M/year Segment)

Pentair Polarex® Alpha Test (New Design)

I n - h o u s e t e s t i n g

Already Winning Positioning For More

Rapid Growth Process



828282

Numerous RGP Activities Creating Growth Traction

40+ Alpha Tests

10% Already Moved To “Beta” or Full Scale Initiatives

Dozens More In The Queue

~$500M “New”Growth ID’d

Quickly Testing Assumptions

Balanced Between “Core” Businesses and“Adjacencies” … With A Few in“Opportunity” Segments

Prioritizing For Best Results &Talent Deployment

Alpha Tests In Every Region …

World Class Process: Continuing to Mature



83

Growth Discipline Maturity Model

Evolution of World-Class Growth Processes83



84

5 Minute Break



85

Globalization and PIMSDriving to the Next Level

Michael V. SchrockMichael V. SchrockPresident & Chief Operating Officer President & Chief Operating Officer


September 14, 2011

New York, NY

Key TakeawaysKey Takeaways



86

Accelerating Global GrowthAccelerating Global Growth ……

• Uniquely Positioned to Serve the Needs of theFast Growth Markets

• Ample Opportunity in Key Growth Markets: China,Latin America and India

• We are Building Global Capabilities to Capture theGrowth Opportunities … Much Stronger Today

Pentair Integrated Management System is a Key EnablerPentair Integrated Management System is a Key Enabler ……

• Pentair Integrated Management System …Pervasive and Delivering Results

• More to Come … Expanding the PIMS Toolkit,Extending Lean Beyond “4 Walls”

Driving to the Next Level


G GG G



87


• Uniquely Positioned to Serve the Needs of theFast Growth Markets





• More to Come … Expanding the PIMS Toolkit,Extending Lean Beyond 4 Walls

More Global … Higher Growth

~$1.3B Opportunity~$1.3B Opportunity – – Fast Growth RegionsFast Growth Regions



88

Stronger Global Capabilities Driving Compounding Growth

$0.3BSales

2006

2011e~$0.7B

Sales

In 2015 …

World Class Operationsand Product Development

Scaled Presence in KeyGrowth Regions

Margins In Line withDeveloped

2015Goal

~$1.3BSales

Actions

> 100 Products LaunchedUniquely for Fast Growth

Regions in 2011 Strong Acquisitions in Key

Growth Markets

More than Doubled SuzhouProduction Capacity,Expanded Reynosa

Built New EngineeringCapabilities in China &India

Meaningfully ExpandedDistribution

China OpportunityChina Opportunity

Chi S lChi S lM k t D iM k t D i

~$145M ~$345M

2011e 2015 Goal~25%CAGR



89

China … Most Reliable Growth Market in the World

China SalesChina Sales

~$85M

~$145M

2009 2010 2011e


~$65M

Continued Expanded Distribution… Double Distributors by 2015

More In-Region, For-Region

Leverage Lean to Build World ClassOperations and Support Growth

Technical Products … UniqueCooling for China Market, More‘Stocking’ Distributors

Water … Grow Residential Filtration,Infrastructure, Beverage andCommercial

Growth FocusGrowth Focus

50% CAGR

’09 – ’11e

30% organic

China’s New 5-Year Plan Indicates$600B Investment in Water RelatedInfrastructure

China GDP in High Single Digits;Industrial Production Double Digits

Over 6 Million New Homes Built in 2010

300 out of top 600 Cities Do NotConform to Drinking Standards

Tech

Products

Water

>$10B Market

Opportunity~8%+

Growth

Commercial/Hospitality OpportunityCommercial/Hospitality Opportunity



90

In-Room Drinking

Water RecycleKitchen/FoodserviceSystemsWater Supply

Waste watertreatment

Fire SystemsPool

From ComplexAdvanced Water

Systems … To

Energy Efficient

Pool Solutions …

To High Standard,

Protective

EnclosuresCommercial & Hospitality

Opportunity

One-Stop … Innovative, Sustainable Solutions Provider

Safe, Protective

Enclosures Cooling

Latin America OpportunityLatin America Opportunity

Latin America SalesLatin America Sales

~$190M ~$350M

>15%CAGR


2011e 2015 Goal



91

On Track to Become a $350+ Million Region

GDP Growing at Solid 4+% Pace

Continued Infrastructure InvestmentsNeeded to Keep Pace with Development

Significant Expansion in Oil & Gas in Brazil Expanded Development in Brazil Due to

2014 World Cup and 2016 Olympics

Continued Development of Agriculture andAlternate, Renewable Energy Sources

Latin America SalesLatin America Sales

~$110M

~$190M

2009 2010 2011e

~$90M

Technical Products … Enhance Access toEnergy, Datacom & Infrastructure, ExpandCooling Products, Localize Production

Water … Expand Residential, Food Serviceand Pool Markets with EconomicDevelopment and Population Growth

>35% CAGR

’09 – ‘11

>20% organic


Increase Distribution and ChannelCoverage in Brazil

Leverage CPT Argentina Presence andStrong Distribution

More In-Region, For-Region

Tech

Products

Water

~$5B Market

Opportunity

~6%Growth


India OpportunityIndia Opportunity

India SalesIndia Sales

~$40M ~$100M

>25%CAGR


2011e 2015 Goal



92

India … Building on Strengths & Seeding New Opportunities

Infrastructure Spending Forecasted toReach $1T During 2012-17, Compared to$530M Over Previous 5-year Period

GDP = $1.4T Growing at 8 – 9%; IndustrialProduction Growing at 8%

Private Sector Investment in Water andSewage Projects Growing Rapidly

India SalesIndia Sales

~$20M

~$40M

~$2B Market

Opportunity>10%

Growth

2009 2010 2011e

~$10M

Grow Advanced Water Systems andTotal Solutions in Commercial andIndustrial

Exploit Opportunity in Energy,Hospitality and Rural

Technical Products … AcceleratePresence by Supporting Global OEMProduct Requirements, Expand Portfolio

to Include Cooling & Stainless Steel Water … Lead Channel Development in

Water Retail


Tech

Products

Water


90% CAGR

’09 – ‘11

>60% organic

““The ChallengeThe Challenge””

Rural Water OpportunityRural Water Opportunity



93

The ChallengeThe ChallengeSurface Water ~ 2 Km Walk

- Microbiological Concerns

- Industrial /Agriculture

pollution

Hand-Pump Well

- Arsenic & Fluoride

- Saline Water >1000 ppm

Non-Hygienic Storage

--- Over 700 Million People in India Have No Access to Safe Water ---

RO System

Village Education Program

Imagine the Possibilities … Sustainable, Clean Water for Millions

““Pentair SolutionPentair Solution””

- RO System Targeting Arsenic &Fluoride

- Confirmed Willingness to Pay forClean Water

-

Education & Awareness are Key- Sustainability Requires

Community Involvement,Franchise Model Concept

Rapid Growth Alpha Test in Kureb

Recipe for SuccessRecipe for Success

In Region For RegionM f iChannel



94

Focused Investments to Yield Higher Growth

Local Product

Development

& Innovation

In Region, For RegionManufacturing

Capabilities

Channel

Development

& Pentair Brand

Awareness

Broad

Distribution &

Sales Coverage

Investing in Global GrowthInvesting in Global Growth



95

Invested over $60 Million in Fast Growth Regions … Ready for Growth

Fast GrowthFast Growth

InvestmentInvestment 2008 to Today

$XXM>$60 Million>$60 Million

EE

MM

PP

LL

OO

YY

EE

EESS

Sales /Sales /

MktngMktng

R&DR&D

Sales & Marketing,

Manufacturing & R&D

~300

~140

~500

~220

China, Latin America, IndiaChina, Latin America, India

2008 Today

India Design Center

China Design Center

Fast Growth Manufacturing CapabilitiesFast Growth Manufacturing Capabilities

Headcount: >2,000 Headcount: >1,600( 1 200 Mfg)



96

We are Where the Growth Is

MexicoMexico

,

Sq. Footage: >670k sq ft(~550k sq ft mfg)

Mfg Locations:Reynosa

Monterrey

ChinaChina

IndiaIndia

Clean Process TechnologiesClean Process Technologies

Expanded EuropeanManufacturing Footprint

CPT to Leverage Pentair’sGlobal Coverage andManufacturing Capabilities

Headcount: >900(>600 Mfg)

Sq. Footage: ~420k sq ft

Mfg Locations:GoaBangalore

,(~1,200 Mfg)

Sq. Footage: >~525k sq ft

Mfg Locations:SuzhouQingdao

Wuxi

Headcount: >550(>400 Mfg)

Sq. Footage: ~230k sq ft

Mfg Locations:

Sao PauloCaxias do Sul

Over 50Manufacturing

FacilitiesAround the

Globe

BrazilBrazil

Rapidly Innovating for Fast GrowthRapidly Innovating for Fast Growth

Top Cab SoftenerChinaChina Valves



97

Innovating for Local Demands and Needs

2009 2011e

~75

~140

# of New Products Launched

in Fast Growth Regions

N e a r l y D

o u b l e

d

5-Stage RO System

Pentair Softener System

Top Cab Softener

POE Booster Pump

ChinaChina

RO And /Or UFWithCarbon

Water AppliancesDesigned for

ChinaApplication

Priced forMarket

Innovative Design

Accommodate SensorTechnology

Range of CustomOptions Available

IndiaIndia

Under sink ROsystem locallyassembled

Custom optionsavailable

Three differentmodels usingsystems valves

Suitable forharsh, dusty,environments

Compliments POEsofteners and filters

Hidro FiltrosLatin AmericaLatin America

CabinetsPressurized

PurgedStainlessSteel

DatacomFloor Mount

StrengthensFiltration

Presence in LatinAmerica

New solutionsfor improvingwater quality

Fast Growth DistributionFast Growth Distribution – – 20092009

Circle Size Represents # of Distributors



98

Early in Distribution Expansion Efforts and Channel Development

ME/Africa

/E. Eur.

SE Asia

~15

~25

~15

~350

~40

LatinAmerica

p

Fast Growth DistributionFast Growth Distribution – – TodayToday

Circle Size Represents # of Distributors



99

>40% More Distributors Today Than Just 2 Years Ago

ME/Africa

/E. Eur.

SE Asia

~65

~80

~95

~180

Extensive Distribution Growth

More to Come…

>500

LatinAmerica

Building Pentair AwarenessBuilding Pentair Awareness

Distributor Programs … Pentair Successful first time

Presence at TradeShow in High Growth



100

Building Global Awareness … Creating Demand & Recognition

Customer Experience, Design& Interaction Center Openedin Shanghai – June 2011

gWater Universities Educating

Distributors in India, China &

Latin America … Thailand,

Indonesia & Malaysia …

Targeting New Trade Show

Opportunities in Select Growth

Regions

Investing in New Customer

Experience Centers and

Showrooms

Forging New Partnerships andLocal Recognition

Show in High GrowthNE Brazil Region

First PentairWater University

in Indonesia Over 70 Dealers

in Attendance Selected as water partner for “Green

Town,” the largest developer ofgreen housing in China

~$1.3B Opportunity~$1.3B Opportunity – – Fast Growth RegionsFast Growth Regions

20% CAGR’11-’15 Continued In



101

Fast Growth Regions are Vast Opportunity for PNR … Just the Beginning

2010 2011e 2015 Goal

~$425M

~$650M

Region, For RegionFocus

LeverageInvestments

Build on CPT’sEmerging Market

Presence andKnowledge

Drive to WorldClass Operations

and ProductDevelopment

53%YoY

~$1.3B

China

% of Total 14% ~19% ~30%

Latin Am.IndiaMEA

SEA



102

Suzhou Capabilities VideoSuzhou Capabilities Video





103

gg• Uniquely Positioned to Serve the Needs of the

Fast Growth Markets






PIMS … Taking to the Next Level

Pentair Integrated Management SystemPentair Integrated Management System



104





Taking PIMS to Next Level … Lean Everywhere Plus Rapid Growth

LEAN

ENTERPRISE

LEAN

ENTERPRISE

PentairPentair’’s Lean Competitive Advantages Lean Competitive Advantage



105

Lean is Part of Pentair’s DNA … Driving Competitive Advantage

The relentless pursuit toeliminate waste –anything that is not valuedby our customers –and improve velocityin all processes within ourorganization.

The relentless pursuit toThe relentless pursuit to

eliminateeliminate wastewaste – –

anything that is not valuedanything that is not valued

by our customersby our customers – –

andand improveimprove velocityvelocity

inin all processesall processes within ourwithin our

organization.organization.4 Key PIMS Concepts:4 Key PIMS Concepts:

Value, Growth,Value, Growth,Waste, & VelocityWaste, & Velocity

Water Gross MarginsWater Gross Margins Technical Products Gross MarginsTechnical Products Gross Margins

Gross Margin Expansion*Gross Margin Expansion*



106

29% 30%

31%

2009 2010 2011e

Growth and Expanding Profits Are Evidence of Lean’s Impact

Sales $1.85B $2.0B ~$2.4B Sales $0.85B $1.0B ~$1.1B

Overcame Headwinds

- Materials Inflation of 4%, FX

- Emerging Market Mix

- Global Investments

Created Success

+ Lean Productivity

+ Footprint Consolidation Reading Out

+ Leverage From Growth

30%

33%

34%

2009 2010 2011e

*All 2009 and 2011 Amounts Presented on an Adjusted Basis; See Reconciliation to US GAAP in Attached Appendix.

S S f t “Best in Class” Incident Rate at

PIMS ResultsPIMS Results – – Operational ExcellenceOperational Excellence

TopTop

FocusFocus GoalGoal ProgressProgress



107

Lean Is Reading Out In Employee, Customer & Shareowner Metrics

S = Safety 40% of industry average

Improved 4 years in a row

Q = Quality Customer Defects down 30%...

Higher Satisfaction Total Cost of Quality down 40%

D = Delivery Up 300 bps per year in each of

the last 3 years

Helping gain market share

C = Cost 2010: 130 bps Expansion

1st Half 2011: 120 bpsExpansion

C = Cash 1st Half ’11 FCF of $117M

On Track for Remainder of 2011

TopTop

DecileDecile

WarrantyWarranty<1% Sales<1% Sales

OTDOTD

>95%>95%

GM ExpansionGM Expansion

>100 bps/yr>100 bps/yr

FCFFCF

> Net income> Net income

PIMS Yielding Results in WaterPIMS Yielding Results in Water

Water SegmentWater Segment Resi Flow GBUResi Flow GBU ActionsActions



108

Lean Efforts Are Reading Out In Water Results

Q u a l i t y

b p s I m p r o v e m e n t

( C u m u l a

t i v e )

b p s I m

p r o v e m e n t

( c u m u l a t i v e )

D e l i v

e r y

FY'10 1H'11

Product Redesigns

Policy Changes

First Pass Yield Focus

Supplier Quality

SIOP

Making Material Flow

Lead Time Reduction

Localization

MDI

510

1,040

FY'10 1H'11

340

680

FY'10 1H'11

70

170

FY'10 1H'11

60

180

Visual ManagementVisual Management ““4 Wall / Lean4 Wall / Lean”” CapacityCapacity

Realizing ResultsRealizing Results

…… Focused at the Plant LevelFocused at the Plant Level ……



109

Common Lean Metrics, Tools & Processes Globally

Quality

Delivery

ProductivityInventory Turns

Moorpark, CA

>30% More Sales Per Employee

China

Belgium

Mexico

+220 bps

+170 bps

+300 bps

+7%

Since 2009

DelavanItaly

China

BBOTD

%LeadTime

Cost %

(Logistics)

…… and Reading Out Regionallyand Reading Out Regionally



110

From Footprint Consolidation To “4 Wall” Lean

BB

EE

FF

OORR

EE

71%

94%

5

Days

1-2Days

>4%

~3%

(Logistics)

AA

FF

TT

EE

RR

Water

EMEA

+220 bpsMargin

Improvement

2009

Today

36%

GrossGrossMarginMargin

Pentair

Looking AheadLooking Ahead ……



111

29% 31% 32%36%

2009 2010 2011e 2015

+ 400 bps Gross Margin Expansion Goal by 2015

+ ~150 bps Direct Materials: Consolidation & Localization, VAVE, Supplier Lean

+ ~100 bps Labor: 4 Wall Lean, BCC Regionalization, Salary & IDL Volume Leverage

+ ~100 bps Variable OH: Quality Improvement, Logistics, Inventory Reductions

+ ~50 bps Fixed OH: Footprint Optimization, Asset & Volume Leverage

+ Inflation and Mix Challenges Offset by Pricing 4 0 0 b p s E x p a n s i o n

4 0 0 b p s E x p a n s i o n

G o a l

G o a l

Goal

2011 – 2015Actions

Supply Management FocusSupply Management Focus Simplification, Rationalization,

To Combat InflationTo Combat Inflation

Lean in SupplyLean in Supply

ProductivityProductivity



112

Mitigating Inflation … Supporting New Growth

Time

M a t u r i t

y &

V a l u e A

d d

P r o d u c t i v i t y

G r o w t h

Q u a l i t y & D e l i v e r

y

S p cat o , at o a at o ,Modular Design

Value Engineering

Supplier Lean- Jointly Optimize Value Stream

- Consolidate Suppliers

- Localize Suppliers (BCC In Region)

Leveraging Co-Wide Commodity Spend

Global Indirect Spend

Fast Growth Region Localization

Dedicated Resources to SupportInnovation & Speed to Market

Supplier Quality & Development

Supplier Lean: Speed, Cash, Cost

PrioritizingPrioritizing GrowthGrowthRelentless inRelentless in Quality & DeliveryQuality & Delivery

Beyond theBeyond the ‘‘4 Walls4 Walls’’ ……

Front EndFront EndGrowth LeanGrowth Lean Supply & OpsSupply & Ops“ “ 4 Wall Lean4 Wall Lean” ” Back EndBack EndOffice LeanOffice Lean



113

Lead Time ImprovedWC Turns Better

Costs Down

Complexity Cut

Complexity Cut

Cycle Time

“Front End” Growth & “Back End” G&A Processes Ripe for Lean

Cut NPI Lead Time

Improved Quality

Productivity Up

Innovation

Funnel UpRep Productivity Up

SalesExcellence

Service Level Up

Lead Time Lower

Productivity Up

CustomerCare

HumanResources

Finance

IT, Legal

SourceServiceDeliver

Invoice &Collect

Innovation Inquiry to Order Order to Remit

Plan Make

G&A

PIMS ResultsPIMS Results – – Front End ProcessFront End Process

Lean Methods Applied:Lean Methods Applied: Outcome:

Technical Products GermanyTechnical Products Germany – –

Customized Product OrdersCustomized Product Orders



114

From: Batch, Slow, InefficientFrom: Batch, Slow, Inefficient To: Continuous Flow, Fast, ProductiveTo: Continuous Flow, Fast, Productive

Value Stream Mapping

Standard Work

Creating Continuous Flow

1. Quality – Internal Quality: 80%

– Customer Quality: 60%

2. Delivery – Lead time reduction: 70% (3 days!)

– 48 Hour Order Acknowledgement: 90%

3. Productivity – Increased 80% (from 6 to 11 orders/day)

pppp

IssuesIssues

Fragmented, Batch ProcessSlow releasing order to factory

Improved ResultsImproved Results

U-Shaped Cell (In

Office) With Single

Piece Flow

Our Best Lean Businesses Only Get Better

Improved Process ConsistencyImproved Process Consistency More, Stronger Lean TalentMore, Stronger Lean Talent

7 Lean Dedicated~300

Why Lean is AcceleratingWhy Lean is Accelerating



115

7 LeanTransformationDisciplines

All SitesFollowing ProvenLean Playbook

More Sites In Advanced LeanMore Sites In Advanced Lean

Common Processes. Greater Talent. More Results.

2560

12085

140

180

2007 2011e 2015

DedicatedLean Roles

LeanGraduatesin LineRoles

~90%

~40%

~10%

2007 2011e 2015

~110

~200

Goal

Goal

Stabilization

Continuous

Flow

Material

Flow

Continuous

Improvement

Early in

Journey

Proof of Concept


Accelerating Global GrowthAccelerating Global Growth ……• Uniquely Positioned to Serve the Needs of the



116

Uniquely Positioned to Serve the Needs of theFast Growth Markets






Strengthening Pentair’s Growth Profile



Filtration Solutions:

Clean Process Technologies

Netha JohnsonNetha JohnsonPresident, Filtration SolutionsPresident, Filtration Solutions


September 14, 2011

New York, NY

Filtration Solutions Overview

2011e Proforma Revenue*: $635MBy Product Platform By Key Vertical By Geography



118

Supporting Pentair’s Strategic Initiatives

y y y y g p y

• Sustainability, Energy Efficiency at the Heart of Platform Offering

• Significant Installed Equipment Base Drives Recurring Revenue

• Global Platforms: 70% Of Revenue is Outside of the United States

UnitedStates(~30%)

DevelopedNon-US

(~35%)

FastGrowth(~35%)

Commercial(~25%)

Industrial(~45%)

Infrastructure

(~30%)

Water(~30%)

FoodService

(~22%)

POUFiltration(~13%)

Beverage(~20%)

SpecialtyPump

(~10%)

Energy(~5%)

* Includes Full Year Forecast of CPT Acquisition; Excluding Pre-Acquisition CPT Sales of ~$75M, Filtration Solutions 2011 Sales are Estimated at $560M.

2011 to 2015 Filtration Solutions Outlook2011 to 2015 Filtration Solutions Outlook

Sales*

2011e & 2015 Goal (Includes CPT)• Market Growth: Fast Growth Regional and

Vertical Markets + Advanced Water Systems

and Beverage/Dairy Penetration



119

Strong Prospects for Value Creation in Filtration Solutions

'08 Actual (6+6) Forecast

ROS

~15%

CAGR


~$560M

~$1B

2011e 2015 Goal

2011e

~13%ROS

~18%ROS

~500 bpsImprovement

g y

• Diverse Vertical Markets: Global Scarcity

and Energy Needs Accelerating

• Global Product Offering: Over 40% of Water

Systems in Fast Growth … NA yet to be

penetrated

• Lean/Sourcing: Continued Emphasis on Leanto Optimize Available Capacity in Support of

Growth

• Significant Margin Expansion: ROS

Expansion driven by Volume Leverage,

Lean/PIMS/Sourcing, Systems Profitability &Global G&A Optimization

* 2011 includes partial year of CPT Results

2015 Goal

Strategically: 100% Fit with Strategic Imperatives

CPT is a Strong Fit with PentairCPT is a Strong Fit with Pentair



120

– Strengths in China, Latin America & Middle East

Strategically: 100% Fit with Strategic Imperatives

Fast Growth Markets

– World Leader in Ultrafiltration (UF) Membrane TechnologyInnovative FiltrationTechnology

– Leader in Pre-filters for Desalination

– Leader in UF for Clean Water

– Leader in Side Stream Membrane Bioreactors (MBR) forWater Reuse

– Leader in Filtration & Separation in Beverage

Focus on AttractiveVertical Sectors

High Fit, High Impact Drives Long-term Shareholder Value

CPT Priorities

Growth (Expected 10%+ Annual Sales Growth)

1 Leverage PNR/CPT Technologies & Channels



121

CPT Is An Accelerator of Shareowner Value

1. Leverage PNR/CPT Technologies & Channels

2. Focus on Key, High Growth Verticals & Regions

3. Leverage Business Model In Adjacent Sectors

Cost ($10M Synergy Goal by 2014)

1. Accelerate Lean/Sourcing in CPT Facilities

2. Leverage Sales Channels More Effectively

Filtration Solutions: Key Product Platforms and Verticals

Focused Growth Verticals

Major Product Platforms

IndustrialWastewater Desalination

Food &Beverage Energy

Food Service/Hospitality



122

Advanced Technologies/Applications in Fast Growing Verticals

Membranes/Systems

Specialty Pumps

Specialty Valves &Equipment

POE/POU Filtration

Wastewater & Water Reuse Market Overview

Industrial Water & WastewaterIndustrial Water & WastewaterMarket DriversMarket Drivers• Fast Growth Markets

G R l S i OCAGR = ~8%



123

Pentair Aligned To Address Key Global Mega Trend

• Investment In Core UF Technology With Ability To Handle Highly Polluted Water

• Leverage Suite Of Products To Develop Complete Standard Systems

• Focus On Intersection Of Water Intensive Industries In Fast Growth &Water Scarce Regions

Pentair Growth FocusPentair Growth Focus

• Greater Regulatory Stringency OnEffluent Purity For IndustrialWastewater

• Costs Associated With RegulatoryViolations Increasing

• Corporate Sustainability InitiativesAlso Driving Focus 2015E2010

$14B

$21B

Source: GWI, Industrial Water & Wastewater Equipment Market.

CAGR 8%

Pentair Capabilities in Wastewater & Water Reuse

Select Reference SitesSelect Reference SitesOverviewOverviewInnovation



124

Track Record of Technology & Systems Innovation

Select ProductsSelect Products

Crossflow MBR Megablock MBR

Crossflow MBR in Istanbul, Turkey Airlift™ MBR inCaracas, Venezuela

• MBR Technology Utilizing Best-in-class

UF Membranes & Systems

• Crossflow MBR & Airlift MBR CoverWider Range Of Applications

• Proprietary Pump & Fluid Dynamics

Differentiation

• Ability To Handle Highly PollutedIndustrial Wastewater With Contained

Systems

• Smaller Footprint: Vertically Configured

Modules Result In Efficient Packaging

• Complete Systems Solutions CombiningMembranes, Housings & Pumps

Nijhuis

+ ~$80M

’11-’15

Desalination Market Overview

DesalinationDesalinationMarket DriversMarket Drivers• Long-term Population &

Industrial Growth CAGR = ~13%



125

Pentair Providing Complete Systems to Growing Desalination Market

• Investment in core UF technology for desalination pre-treatment applications

• Leverage suite of products to develop complete UF pre-treatment & standard

RO systems• Focused on developing fast growth & water scarce regions


Industrial Growth

• Water Scarcity In Fast Growth

Countries & Regions• Country Specific Initiatives:

― China 5 Year Plan Heavy OnWater Investment

2015E2010

$~8B

$~15B

Source: GWI, Annual Desalination Capex

C G 3%

Pentair Capabilities in Desalination

Select Reference SiteSelect Reference SiteOverviewOverview

Innovation



126

The world’s largest UF Desalination Plant(Shuwaikh, Kuwait) uses Seaguard membranes

Ability to Significantly Increase Content

Nijhuis SuperDuplex Pump

X-FlowSeaguard UFMembranes

CodelineVessels

Select ProductsSelect Products

• First Membrane In The World

Specifically Designed To Pre-treat

Seawater

• Highly Effective, Environmentally

Friendly Single Barrier Solution Installed

Before The RO Desalination Process

Differentiation• Single Barrier Pre-treatment With Low

Footprint

• Complete Systems Solutions Combining

Membranes, Vessels & Pumps

• PH Correction with CO2

+ ~$55M

’11-’15

Food & Beverage Market Overview

Food & Beverage MarketFood & Beverage MarketMarket DriversMarket Drivers• Heavy Emphasis On Quality

Control And Safety CAGR = ~4%



127

Pentair Poised to Outpace Market Growth via Innovation & Expertise

• Expansion into New Segments and Installed Base – Multiple Systems & Solutions

For Food & Beverage Vertical

• Continue To Innovate – Focus On Critical Process Applications To Drive Margin• Target Fast Growth & Developing Regions – Plants Following Development


Control And Safety

• Manufacturers Focused On

Reducing Operating Expenses• Population & Wealth Driving

Food & Beverage ConsumptionGrowth

2015E2010

$~3B

$~4B

Source: GWI, Food & Beverage Water & Wastewater Equipment Market

CAGR = 4%

Pentair Capabilities in Food & Beverage

l i n e

u s e

CIP unfiltrate CIP filtrateWastewater

(re-use)Processwater

Process Steps in the Brewery CycleProcess Steps in the Brewery Cycle

PNR

Components

+ ~$70M’11-’15



128

F i l l i n g l

B r e w h

o u

Wort coolingWort aeration

Fermentationcellar

BlendingCarbonation

Flashpasteurisation

Bright beercellar

BMF

CO2

recoveryDeaerated

water

Effluent re-use

Yeast management

Südmo doubleseat valves

Cleaning-in-place systems

Haffmans CO2

recovery systemO2 measurement

systemKieselguhr-free

OptiBMF systemCrossflow MBR

Reduced Water consumption

from five litres to two litres ofwater for every litre of beerproduced

• Increases process efficiency

• Reduction of chemicals use

• Improvement of total cost ofownership

Reduction in energy

consumption by upto 60% through heatrecovery

Apply Expertise to Gain Greater Share of Customers Wallet

MembranesMembranes ValvesValves Specialty EquipmentSpecialty Equipment

Core Strengths of Business Model

Technology• Ability to Address

Customers’ CriticalProcess Challenges



129

Applications

Systems

Sales

Service

References

Established Path to High Margin Growth

Process Challenges – Unique Technology

Coupled w/ ApplicationsExperience

– Relevant to MultipleIndustries

• Recurring RevenueStreams from InstalledBase – Consumables & Services

– Expansion via MultipleSystems

Leverage Model Across Industries

• Aseptic Valves • Aseptic Valves

Typical Dairy SystemTypical Dairy SystemTypical Brewery SystemTypical Brewery System



130

Apply Technology & Expertise to Adjacent Markets

• Control Panels

• Test & Measurement Analytics

• Stainless Steel Engineering

• Service & Management

• Control Panels

• Test & Measurement Analytics

• Stainless Steel Engineering

• Service & Management

Expand Sustainable Solutions into Attractive Markets

DairyDairy

ElectronicsElectronics

Produced WaterProduced Water

– –

Oil & GasOil & Gas

Market Size ~ $1B Market Size ~ $1B Market Size ~ $9B



131

Replicate Current Systems Success into Future Markets

PharmaceuticalsPharmaceuticalsBioBio--EnergyEnergyPower GenerationPower Generation

Market Size ~ $2BMarket Size ~ <$1BMarket Size ~ $2B

CPT Priorities

Growth (Expected 10%+ Annual Sales Growth)

1 Leverage PNR/CPT Technologies & Channels



132

CPT Is An Accelerator Of Shareowner Value

1. Leverage PNR/CPT Technologies & Channels

2. Focus on Key, High Growth Verticals & Regions

3. Leverage Business Model In Adjacent Sectors

Cost ($10M Synergy Goal by 2014)

1. Accelerate Lean/Sourcing in CPT Facilities

2. Leverage Sales Channels More Effectively

PIMS Operational Leverage

Proof of Key Focus Areas

Lean JourneyLean Journey Margin ExpansionMargin Expansion



133

Stabilization

Continuous Flow

Material Flow

Continuous

Improvement

Focused on Making Lean the Way We Do Business

Early inJourney

Proof ofConcept

Key Focus Areas

• Exploit In-sourcing

Opportunities• Develop supply chain focused

on process and value addedprocesses

• Create culture throughout shopfloor focused on improvingevery day

• Develop pipeline of

lean leaders• Consolidate Redundancies

2011

2014+

CPT ishere

FiltrationSolutions

is here

Channel Synergies



134

Legacy Sales offices

ChinaChina

EMEAEMEA

North AmericaNorth America

41 Employees

15 Employees

11 Employees

India

India

13 Employees

Latin AmericaLatin America

4 Employees

Global Sales Coverage with Global Customers and Reference Sites

Legacy Sales Offices

41 Employees

4 Employees

13 Employees

41 Employees

4 Employees

15 Employees

13 Employees

41 Employees

4 Employees

11 Employees

15 Employees

13 Employees

41 Employees

4 Employees

Channel Synergies



135

CPT Sales offices


ChinaChina

EMEAEMEA


India

India



Legacy Sales Offices

ChinaChina

EMEAEMEA


17 Employees

29 Employees

97 Employees

IndiaIndia

14 Employees


16 Employees

CPT Sales Offices

11 Employees

15 Employees

13 Employees

41 Employees

4 Employees

Water Reference Sites



136

CPT Sales offices







137

CPT Sales offices


Water & Beverage Reference Sites


Nestlé (Cabuyao, Philippines)

Wastewater Treatment Plant




138



Channel Synergies



139

CPT Sales offices




Martens brewery (Antwerp, Belgium)Kieselguhr-Free Membrane Filtration Plant

X-Flow Südmo Haffmans

70%

2011 CPT Cost Analysis (vs. Revenue)

100%

Focused Reduction

Opportunities

2015 TargetsGross Margin >35%

Op Expenses <20%

ROS >15%



140

Confident in Ability to Exceed 15% ROS While Growing Double-Digit

0%

of

Sales

Revenue Material &Mfg. Costs

3%

of

Sales Currently

8% ROS

R&D Selling &Marketing

G&A IntangibleAmortization

2011ROS

Gross

Margin

=30%

10%

of

Sales

5%

of Sales

4%of

Sales ~8%

ROS

In Line withGrowth Ambitions

ROS >15%

Summary

Growth Drivers• Maintain Technology Leadership Position

• Leverage Vertical Specific Application Expertise



141

• Expand Share of Wallet in Existing Verticals

• Apply Solid Business Model to Adjacent Sectors

• Focus on Fast Growth Regions

Profitability Drivers

• Drive PIMS throughout CPT

• Accelerate Sourcing Opportunities

• Target High Margin Industries

Well Positioned for Profitable Growth



Accelerating Performance

and ROIC

John L. StauchJohn L. StauchChief Financial Officer Chief Financial Officer


September 14, 2011

New York, NY

Well Positioned to Drive Differentiated Growth•Aligned with Markets Growing at Greater than Global GDP

•Product Platforms + GBU’s + Regions are Aligned to Serve Customers

Pentair 2011 to 2015* OutlookPentair 2011 to 2015* Outlook



143

•Product Innovation and Market Innovation + Fast Growth Geographies

(China, Latin America, India, Middle East, and Eastern Europe)

Cost & Business Models are Yielding Results

•Adequate Capacity within Current Global Footprint

•Continued Productivity … Significant Opportunity in VariableManufacturing Costs through Global Alignment of Supply Chain

Organic Revenue Goal of ~$4.6B by 2015

Targeting ROS of ~16% by 2015

EPS Goal of > $4.50 and ROIC of ~15% by 2015

Well Positioned to Accelerate Growth, EPS and ROIC*All references to 2015 represent Pentair’s long-term strategic goals.

DifferentiatedOrganic Growth

• Our Markets Should

Creating Shareowner ValueCreating Shareowner Value

Productivity

• Price/Material/Mix

• “PIMS Acceleration”

Capital Allocation

• Maintain a SolidBalance SheetP i i



144

Grow Faster than

Global GDP• Rapid GrowthProcess

• Market Innovation

• Product Innovation

• Global Supply and

Logistics Opportunity

• Localization ofDesign, Marketing,and Manufacturing

Position

• Dividend Expansion• Organic Growth

• Self-Funded,Bolt-on Acquisitions

• Debt Reduction

Market ANDDifferentiated

Growth

Market ANDDifferentiated

Growth

100 bps+Annual Margin

Expansion

100 bps+Annual Margin

Expansion

DisciplinedCapital

Allocation

DisciplinedCapital

Allocation

Growth + Productivity + Capital Allocation = 15%+ ROIC by 2015**All references to 2015 represent Pentair’s long-term strategic goals.

Full Year 2011* OutlookFull Year 2011* Outlook

2011 Expectations

Sales

14-16%

Financial Summary

Revenue up 14-16%

• Water up 16-18%; RecurringOrganic Up High Single Digits, $3 0B

~$3.5B



145


Adj. Operating Income

Growthg p g g g ,

excluding GIWW**

• Technical Products up ~10%+

Adj. Operating Income up >20%

• Cost Model Holding Nicely

• Gross Margin

Expansion > 100 bps• Op Expenses Flat at ~20%

• Operating Margins ~12%

Expected Adj. EPS up 21% - 25%

Expected Cash Flow > $250M '10 Actual (6+6) Forecast

$3.0B

2010 2011e

2010 2011e

$334M~$415M

11%ROS

~12%ROS

Adj. EPS: $2.00 $2.42 to $2.50

Strong and Balanced Growth in 2011 … Significant Potential

~24%Growth

*All 2011 Amounts Presented on an Adjusted Basis; See Reconciliation to US GAAP in Attached Appendix

** GIWW Refers to Gulf Intracoastal Waterway pump project in 2010 of $56M

Global Water PortfolioGlobal Water Portfolio($M)

All Numbers are Approximate

8%$2.0B

$2.4B

$3.3B

Water Segment Revenue Water Segment Product Platforms

2011e 2015 Goal

Pumps

Non

Water

~10%~40%



146

Well Positioned Residential Water Portfolio

2010 2011e 2015

Goal

’11-’15 CAGR

~20%’10 to ’11

Targeted ’11 – ’15 GBU Growth Rates Targeted ’11-’15 Key Growth Verticals

Filtration & Water

Treatment

• Residential Flow ($700M) … ~5% CAGR

• Filtration Solutions ($560M) … ~15% CAGR

• Pool Products ($520M) … ~6% CAGR

• Residential Filtration ($380M) … ~10% CAGR

• Engineered Flow ($300M) … ~4% CAGR

• Industrial ($450M) … ~10% CAGR

• Infrastructure ($300M) … ~8% CAGR

• Hospitality/Health ($300) … ~9% CAGR

• Agriculture ($150M) … ~15% CAGR

• Beverage ($100M) … ~14% CAGR

*All references to 2015 represent Pentair’s long-term strategic goals.

~50% ~55%

Global Technical Products RevenuesGlobal Technical Products Revenues

Energy General Electronics Industrial

’11-’15 Growth Drivers

•Energy &

Infrastructure …

to Support Human



147

‘10-’11

Strong Growth Expected for Technical Products Segment

2011e Rev.: >$115M 2011e Rev.: >$215M 2011e Rev.: >$390M

to Support Human

Development

•Industrial …

Automation to

Drive Productivity

& Serve Growing

Middle Class•Communication …

Greater

Connectivity

Demands,

Everywhere

15% ~10% 13% ~5%

15% ~5%

’10-’11 2015

+20% ~10%+

2015

(8)% ~7%

’10-’11 2015

17% ~4%


Infrastructure

2011e Rev.: >$70M

Communication

2011e Rev.: >$210M

Commercial

2011e Rev.: >$70M’10-’11 2015 ’10-’11 2015 ’10-’11 2015

Global Pentair PortfolioGlobal Pentair Portfolio – –2011e (~$3.5B)2011e (~$3.5B)

By Business (GBU) By Geography By Vertical

Technical

EngineeredFlow

FiltrationSolutions

FastGrowth(~19%)

USResidential

Infrastructure(~10%)



148

• Balanced Portfolio

• 6 Vertical MarketFacing GBU’s

• Largest GBU only

~30% of Pentair

Diverse Businesses, Geographies, & Verticals

TechnicalProducts

ResidentialFlowResidential

Filtration

Pool

United

States(~59%)

DevelopedNon-US(~22%)

(~19%)

• ~19% of Portfolio inFast Growth Regions

• Biggest Opportunitiesin China,

Latin Americaand India

• Industrial IncludesAgriculture and OnsiteTreatment

• Commercial Includes

Food Service GlobalOpportunity

(~23%)

Commercial(~11%)

Industrial &Agriculture

(~44%)

Non-USResidential

(~12%)

Global Pentair PortfolioGlobal Pentair Portfolio – –2015* (~$4.6B)2015* (~$4.6B)

By Business (GBU) By Geography By Vertical

Technical

FiltrationSolutions

FastGrowth

USResidential

( 23%)

Infrastructure(~11%)



149

• Balanced Portfolio

• More AdvancedFiltration Systems

• More Agriculture

Continuing to Become More Diverse & Balanced

Products

ResidentialFlow

ResidentialFiltration

Pool

Engineered

Flow

United

States(~50%)Developed

Non-US(~20%)

(~30%)

• More Global Mix ofRevenue

• Greater Presence inFast Growth Regions

• More Infrastructure &Industrial

• Less Residential / Consumer

(~23%)

Commercial(~11%)

Industrial &Agriculture

(~45%)

Non-USResidential(~10%)


2011 to 2015* Growth Accelerators2011 to 2015* Growth Accelerators

Customer First (Doing the Little things Right Everyday)

• Delivery from 92% of Sales in 2011 to 95%+ in 2015

• Quality (PPM) from 9,000 in 2010 to 4,000 in 2015

• Net Promoter Score greater than 35% in 2015



150

Market & Product Innovation• Marketing Excellence … Rapid Growth Process

• Leverage our PNR/CPT** Channels with Richer Content

• Use our Global Capability to Grow with Faster Growth Customers

• Be the Go-To Partner for Sustainable SolutionsNew Platforms & Opportunities

• Industrial Water Reuse

• Expand our Agriculture Capabilities

• Global Systems for Water and Non-Water Applications• New Adjacencies: Aquaculture, Dairy, Hospitality, Salt-less Softeners

Distinct, Funded, Initiatives to Enable Double-Digit Growth*All references to 2015 represent Pentair’s long-term strategic goals.** CPT refers to the acquisition of Norit ’ s Clean Process Technologies Business on May 12, 2011

2011 to 2015* Growth Opportunity2011 to 2015* Growth Opportunity

$3 5B~$500M

~$225M~$300M ~$100M ~$4.6B

30%

~7%

CAGR

~4 Points~1.5 Points

~1.5 Points

(Net of Churn)



151

~$3.5B

2011Estimate

MarketGrowth

NetPricing

DifferentiatedGrowth

CPT Acq**(5 months)

2015Goal

US

DevelopedInt’l

FastGrowth

~59%

~22%

~19%

~ 50%

~ 30%

~ 20%

Developed ~3%Fast Growth +8%

• Channel Expansion

• Fast Growth Markets

• Systems/Innovation

• New Platforms

Growth Initiatives:

~2 Points of Differentiated Growth + Market Recovery/Expansion*All references to 2015 represent Pentair’s long-term strategic goals.** CPT refers to the acquisition of Norit ’ s Clean Process Technologies Business on May 12, 2011

Market GrowthMarket Growth – – NA Residential RecoveryNA Residential Recovery

2011

US Residential Revenue($0.9B)

Recovery Opportunity

6% CAGR

’11-’15

ResidentialFilt ti (20%)

• >80% of 2011 Revenue isrelated to Installed Base($740M)



152

• Water Distribution/ Dealer ~$0.4B

• Pool Distribution~$0.4B

• Retail ~$0.1B

NA Recovery Will Happen … Likely to Be in 2013+

ResidentialFlow (32%)

Pool (48%)

Filtration (20%)

• <20% of Revenue is relatedto New Housing ($150M)

2011e 2015*

New Housing Builds ~425K ~1MEstimated Revenue ~$150M ~$350MGrowth Rate (CAGR) ~20%Installed Base ($M) ~$740M ~$800M

Growth Rate ~2%

*2015 Goal Assumptions are Based on Management Judgment of External Housing Data or Predictions

Fast Growth Regions*Fast Growth Regions*

Fast Growth Regions

(China, LA, ME, & India) Differentiated Growth

~20% CAGR

’11-’15• China (+$120M)

• Latin America (+$65M)

~$1.3B

+$370M(~12 pts.)



153

2011 2015

• China +$80M (~12% CAGR)

• Latin America +$85M (~9% CAGR)

• Middle East +$25M (~8% CAGR)

• India +$15M (~8% CAGR)

2011e 2015 Goal

Doubling of Fast Growth Regions Expected by 2015

Regional Market Growth

• India (+$45M)

• Southeast Asia (+$40M)

• Eastern Europe (+$40M)

• Africa (+$30M)

• Middle East (+$30M)

~$650M

* All references to 2015 represent Pentair’s long-term strategic goals.** Other Fast Growth includes: Eastern Euro e, Africa and Southeast Asia

ChinaIndiaLatin Am

MEOther**

+$260M(~8 pts.)

2011 to 2015* Productivity Accelerators2011 to 2015* Productivity Accelerators

Culture

• Better Price/Cost Management in 2011 … Even Better 2012+

• Evaluating/Improving Global Supply Chains

• Most Factory Footprint Moves Behind Us … Local Alignment



154

Lean Acceleration• Adoption/Migration of Lean to CPT Facilities

• Continue to Upgrade and Invest in Processes/People/Global Training

• Variable Cost (Cost of Quality) and Manufacturing Laborare Still Largest Opportunities

Standardization/Simplification

• Systems/Software Vision Established and Being Executed …Completion Expected by 2015/2016 (Including CPT)

• Core Manufacturing Processes (10+) are Being Improved Globally …Advancing all of Pentair to Best Processes and Practices

Significant Cost Opportunities Remain*All references to 2015 represent Pentair’s long-term strategic goals.

41% 42% 40%

P&L Trajectory*P&L Trajectory*

Key Manufacturing Strategies• Reduce Variable Cost

(~$70M of Expected Savings by 2015)

• Reduce Manufacturing Labor(~$65M of Expected Savings by 2015)

2010 2011e 2015**~$4.6B$3B $3.5B

MaterialCost

100%

~ ~



155

16%12%11%

20% 20% 20%

24%26%28%

42%

EPS: $2.00 $2.42 to $2.50 >$4.50

( $65M of Expected Savings by 2015)

Operating Expense Priorities• R&D, currently 2% of sales vs. goalof 3-4% of sales by 2015 …Fund with G&A Reductions (1-2 points)

• Selling/marketing, currently 10% ofsales … Long-term Goal 10%

• Prioritizing R&D and selling/marketingto developing regions

Gross Margin of ~36% by 2015

Op. Margin of ~16% by 2015

Growth + Productivity = ROIC

Cost

Mfg.Cost

Op.Expenses

Op. Margin

*All 2011 Amounts Presented on an Adjusted Basis; See Reconciliation to US GAAP in Attached Appendix.**All references to 2015 represent Pentair’s long-term strategic goals.

~

~

~

~

~

~

Key Cost Components*Key Cost Components*

~$3.5B

~$4.6B2011 Outlook 2015 GoalRevenue

• Sales Expected up 14-16%

• Water up 16-18% (Recurring High

Single Digits, ex. GIWW)

• Technical Products up ~10%+

• Revenue up ~7% CAGR

• Expecting ~$4.6B by 2015

• Water High Single Digits;Tech Prod Mid Single Digits

+$1B14-16%

2011e 2015 Goal



156

p

~42% ~40%

Material/Sales

~32%

~36%Gross Margin

Tech Prod Mid Single Digits

2011 Outlook

• Significant Inflation

• Price/Inflation In-line

• Product/Region Mix Impact

• Price/Mix/Net MaterialExpected to Improve

• Inflation of (~3%/yr.)

2011 Outlook

• 100 bps of Improvement

–Productivity–Volume Leverage

• 400 bps of Improvement

–Productivity; Globalization–Volume Leverage

Revenue up $1.1B … Gross Margin Expected to be up ~400 bps by 2015

2015 Goal

2015 Goal

-110 bps

+100 bps

*All 2011 Amounts Presented on an Adjusted Basis; See Reconciliation to US GAAP in Attached Appendix.All references to 2015 represent Pentair’s long-term strategic goals.

2011e 2015 Goal

2011e 2015 Goal

Key Cost Components (Continued)*Key Cost Components (Continued)*

~20% ~20%

2011 Outlook 2015 GoalOp Expenses

• 20 bps Increase in R&D

• 50 bps Increase in S&M toabove 10%/Sales

• 70 bps Reduction in G&A

Flat %Flat %

• Long Term Target of 20%

• R&D at 4%, Selling/Marketing at 10% (Funded by

G&A Reductions)2011e 2015 Goal



157

70 bps Reduction in G&A

~12%

~16%

Op Margin

>8.5%

~15%

ROIC

2011 Outlook

• Deliver 12% Op Margins%

• Up 100 bps vs ‘10

• Op Income Up $80M

2011 Outlook

• Improved Performance on

Base Business• CPT Investment

• Improvement driven by

organic growth andcontinued productivity

Op Margin Expected to be up ~400 bps by 2015 … ROIC >15%

2015 Goal +$310M

2015 Goal +650 bps

+100 bps

+50 bps

• Deliver 16%+ Op Margins

• Up ~1 pt. per Year ’11-’15

• Up ~$75M per Year ’11-’15


2011e 2015 Goal

2011e 2015 Goal

RecoveringMarket Growth

• NA Tech Products

Mix of Revenue Growth (2011Mix of Revenue Growth (2011 – – 2015)*2015)*

New Productsor New Channels

• Fast Growth Regions

New Platformsand Systems

• Standard &



158

• NA Residential• Commercial

• Municipal

• Western Europe

• New Channels• NA Retail

• New Technologies

Customized Systems• Large, IntegratedProjects

• Services & Rental

AverageConversion

of 35%+

All Growth is Not Equal … But, Global Growth Becoming More Profitable

AverageConversion

of 25%+

AverageConversion

of 10%+


Manufacturing Cost Goals*Manufacturing Cost Goals*

• $180M+ of Net Benefit by 2015

• Material/Sales Improvement150 bps to ~40% of Sales

• 1% Reduction in Mfg Wages;32% 36%

Full Year Manufacturing Costs

(% of Sales)

+$180M

100%

GrossMargin



159

2009 2014

1% Reduction in Mfg Wages;

$60M (~1/3 from Localized FastGrowth and ~2/3 from volume /efficiency)

• $70M of Variable Mfg. and Fixed

Overhead Reductions fromOverhead Leverage, and VariableMfg. Reductions, predominantlyin logistics and quality

2011e 2015 Goal

Material

ManufacturingLabor

6%

42%

7%

ManufacturingOverhead

15%

11%

40%

14%

10%

Reduction of ~400 bps Targeted From 2011-2015*All 2011 Amounts Presented on an Adjusted Basis; See Reconciliation to US GAAP in Attached Appendix.All references to 2015 represent Pentair’s long-term strategic goals.

Margin

Operating Expense Goals*Operating Expense Goals*

• Maintain OperatingExpenses Flat as % ofSales

• R&D 3-4% of Sales by 2015R&D~2%

Full Year Operating Costs(% of Sales)

~4%

~20% ~20%



160

2009 2014

y

• Selling & Marketing10% of Sales by 2015

• G&A of 5% (+200 bps)Funds Growth RelatedResources

• Amortization/Other

Improves with Volume2011e 2015 Goal

Amortization/

Other

G&A Non-Amortization

Selling/Marketing

6%

~1%

7%

~7%

~10%

~1%

~5%

~10%

Improving Op Expenses … Shifting More Towards Growth*All 2011 Amounts Presented on an Adjusted Basis; See Reconciliation to US GAAP in Attached Appendix.All references to 2015 represent Pentair’s long-term strategic goals.

2011 to 2015 Operating Income Goals*2011 to 2015 Operating Income Goals*

~$225M

>$725M

~15%+CAGR

~$320M

+6 pts. (3 pts.)



161

Growth + Productivity … Yields ~ 15%+ Targeted Op Income CAGR

~$415M

~$265M

2011Estimate

RevenueGrowth

NetPricing

Inflation Productivity 2015Goal

• R&D = ~$65M

• Selling/Mark = ~$30M

• Other = ~$15M

~($390M)

StrategicInvestment

~($110M)

12%ROS

~16%ROS

+4 pts.

(11 pts.) +8 pts.


~$1.60

>15%CAGR

2011 to 2015 EPS Opportunity*2011 to 2015 EPS Opportunity*

>$2.00

per Share



162

~$2.42to $2.50

~$1.80 >$4.50

2011Estimate

RevenueGrowth

NetPricing

ProductivityNet of Invest

2015Goal

Share Count and Interest Assumed Flat for Modeling Purposes

~($2.85)

Shares/Interest

~$1.50

~$250Mof FCF

2011 to 2015 Adjusted EPS Goal of >15% Per Year

>$500M

of FCF

Inflation /Min. Interest


Positioned for More IfPositioned for More If ……

• Growth: Developed World Less Sluggish than OurPredictions/Expectations

• Bolt-On Acquisitions Accelerate Our Geographical and



163

Opportunity Beyond Identified Model

Technology Platforms … Accelerating EPS

• Price/Cost/Foreign Exchange Become More PredictableAllowing our Global Supply Chains to be Optimized

• Non US Growth Continues to Help the Tax Rate

• Excess Cash (Net Generated, Less Dividends andAcquisitions) Deployed Toward Debt Pay down or Share

Repurchase

2015 Cash Flow Generation Potential*2015 Cash Flow Generation Potential*

~$145M ~$500M~$150M

2 turns of WC(~0.5/yr.)



164

Significant Cash Generation Potential; NI + Working Capital

~$450M

~($110M)

of FCF

2015NI Goal

Depr./Amort./SOE

Receivables** Inventory** Payables** 2015FCF Goal

~$1.5B’12-’15

~($50M)

Capital

Receivables 18% 18%Inventory 13% 11%Payables (10%) (11%)

’11 ‘15% to Sales

*All references to 2015 represent Pentair’s long-term strategic goals ** vs. 2011 Performance/Levels

~($85M)

>100%of NI

Capital Allocation PhilosophyCapital Allocation Philosophy

Capital Allocation Uses (Assuming ~$1.5B Cumulative from ’12-’15)*:

1. Debt Management: Maintain Investment Grade Rating

2. Dividend: 35 Straight Years of Increases … Allows for



165

Disciplined Allocation Philosophy … Prioritized Towards ROIC

Disciplined Cash Management and Pays Shareowners 1st

3. Organic Growth: Highest ROIC Comes From FundingOrganic Opportunities (Cash thru Distribution Channel,R&D, Sales/Marketing, Capital, etc.)

4. Acquisitions or Share Repurchase: We play in attractivespaces where opportunities are plentiful … Bolt-on’sfocused on channel expansion, technology, and

geographies


Summary*Summary*

• Growth: Assuming Market Growth + Differentiated Growth

to be ~7% CAGR from 2011 to 2015 … Drives a 2015 Goalof ~$4.6B in Revenue

• Productivity: Still a lot of opportunity for improvement



166

Significant Expansion Targeted in Revenue, EPS, & ROIC from 2011-2015

within our Global footprint and operating model• EPS: Driving for 15%+ CAGR from 2011 to 2015

• Cash Flow: Significant cash generation opportunity …

ability to add more revenue and earnings potential overhorizon

• ROIC: Driving to Expand ROIC to ~15% in 2015 through

organic growth, Bolt-On Acquisitions, and continuedproductivity




Global GrowthFocused and Forward

Randall J. HoganRandall J. HoganChairman & Chief Executive Officer Chairman & Chief Executive Officer


September 14, 2011

New York, NY

What You Heard TodayWhat You Heard Today……

Today’s Portfolio Reflects Technology, Innovation andFast Growth Region Strategic Focus

Mega Trends Provide a Broad Array of Opportunity



168

Focused and Forward Thinking on Growth

Execution on Growth and Productivity Initiatives areStrong, Focused and Prioritized

Pentair Integrated Management System FuelsOperational Excellence and Growth

Pentair is Well Positioned to Deliver Profitable,

Sustainable Growth & Shareholder Value



169

Thank You for Attending!

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