PENTAIR: DIFFERENTIATED GROWTH PENTAIR INVESTOR & ANALYST EVENT - - PowerPoint PPT Presentation

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PENTAIR: DIFFERENTIATED GROWTH PENTAIR INVESTOR & ANALYST EVENT - - PowerPoint PPT Presentation

PENTAIR: DIFFERENTIATED GROWTH PENTAIR INVESTOR & ANALYST EVENT Randall J. Hogan Chairman and Chief Executive Officer November 13, 2013 1 PENTAIR 2013 Houston Investor & Analyst Event FORWARD-LOOKING STATEMENTS C AUTION C ONCERNING F


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SLIDE 1

PENTAIR

PENTAIR: DIFFERENTIATED GROWTH

PENTAIR INVESTOR & ANALYST EVENT

1

Randall J. Hogan Chairman and Chief Executive Officer November 13, 2013

2013 Houston Investor & Analyst Event

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SLIDE 2

PENTAIR

2

FORWARD-LOOKING STATEMENTS

CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This communication contains statements that we believe to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward-looking

  • statements. Without limitation, any statements preceded or followed by or that include the words "targets,” "plans,”

"believes,” "expects,” "intends,” "will,” "likely,” "may,” "anticipates,” "estimates,” "projects,” "should,” "would,” "positioned,” "strategy,” "future" or words, phrases or terms of similar substance or the negative thereof, are forward- looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the ability to successfully integrate Pentair, Inc. and the Flow Control business and achieve expected benefits from the Merger; overall global economic and business conditions; competition and pricing pressures in the markets we serve; the strength of housing and related markets; volatility in currency exchange rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; increased risks associated with operating foreign businesses; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the U.S. Securities and Exchange Commission, including in our Quarterly Report on Form 10-Q for the quarter ended September 28, 2013 and our 2012 Annual Report on Form 10-K. All forward-looking statements speak only as of the date of this communication. Pentair Ltd. assumes no obligation, and disclaims any obligation, to update the information contained in this communication.

2013 Houston Investor & Analyst Event

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SLIDE 3

PENTAIR

3

2013 Houston Investor & Analyst Event

KEY DEFINITIONS FOR TODAY’S PRESENTATION

  • All 2015T References Represent Our 2015 Long Term Goals
  • All 2013F References Represent Our 2013 Full Year Expected Results
  • All References to 2012 are Presented on a Pro Forma Basis to Include the Results of

Flow Control for the Full Year

  • All References to 2011 are Presented on a Pro Forma Basis to Include the Results of

Flow Control for the Full Year

  • All 2013, 2012, and 2011 Amounts are Presented on an Adjusted Basis and Exclude

the Impact of Severance, Asset Impairment, Deal-Related, and Other Costs

Please Refer to the Appendices for Reconciliations of Non-GAAP Measures and Pro Forma Results

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SLIDE 4

PENTAIR

4

AGENDA

1) Strategy Overview & Trends Randy Hogan 8:30 – 9:15 2) Thermal Management Overview Alok Maskara 9:15 – 10:00 3) Valves & Controls Overview David Dunbar 10:15 – 11:00 4) Q&A Leadership Team 11:00 – 11:30 5) Transportation to Pasadena 11:45 – 12:30 6) Pasadena Service Center Tour 12:45 – 2:00

Welcome!

2013 Houston Investor & Analyst Event

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SLIDE 5

PENTAIR

5

LAST YEAR’S THEME AND KEY MESSAGES

A New Company Building Off Proven Platforms for Success

A Stronger Company More Opportunities Proven Operating Disciplines Setting & Meeting Expectations 1

The New Pentair

2 3 4

  • More Balanced
  • More Global
  • More Diversified
  • Growth
  • Cost
  • Standardization
  • PIMS: Focus on Lean Enterprise
  • Aggressive & Achievable
  • Smart Capital Deployment

2013 Houston Investor & Analyst Event

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SLIDE 6

PENTAIR

6

A Stronger Company

Many Indicators of Our Strength

PROGRESS TO DATE …

+ Added to S&P 500 + Share Price up 53% (+31% versus S&P 500) + Recognized in Bloomberg BusinessWeek Top 50 + Recognized Forbes Top 100 Innovators + Two Shingo Silver Medallion Awards in 12 months + 30,000 Employees … Leadership in Key Verticals

2013 Houston Investor & Analyst Event

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SLIDE 7

PENTAIR

7

A Successful Year One

PROGRESS TO DATE …

+ Integration Synergies Expected to be $120M in 2013

  • Original Target ~ $90M
  • Overdriving Lean / Sourcing and Standardization

More Opportunities Proven Operating Disciplines

+ PIMS Aggressively Adopted

  • All 100+ Mfg. Facilities Driving PIMS’ Lean Enterprise
  • Standardization Actions Underway for ’14 & ’15

+ Solid Financial Returns YTD

  • Adj. EPS* Up 18% … Free Cash Flow >100% of NI
  • Adj. Operating Margins* Up 120 Basis Points
  • Smart Capital Allocation: Buy Backs = $875 Million
  • f $1.2 Billion

Setting & Meeting Expectations

+ Significant Opportunities Remain

  • G&A Complexity and ERP Consolidations
  • More Growth Synergies Anticipated as Programs Take Off
  • Capital Deployment Flexibility

2013 Houston Investor & Analyst Event

* All year-over-year comparisons against 2012 adjusted results on a pro forma basis for the Flow Control acquisition. See Appendix for reconciliation of non GAAP measures.
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SLIDE 8

PENTAIR

8

PENTAIR STRATEGY – CONSISTENT APPROACH

  • Higher Organic Growth: Verticals & Innovation Focus

‒ Where We Lead and Can Drive Differentiated Growth ‒ Aligned with Growth Trends

  • Successfully Integrate Company

‒ PIMS … One Pentair Culture / Win Right … Aligned Verticals ‒ Targeting Synergies and Base Performance to Deliver ~$5.00 EPS in ’15

  • Drive Operational Excellence

‒ Known as World-Class in Lean and Growth ‒ Destination Company for Customers and Top Talent

Continue to Execute These Strategic Imperatives

2013 Houston Investor & Analyst Event

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SLIDE 9

PENTAIR

9

PENTAIR: A BALANCED & DIVERSE PORTFOLIO

Broad Diversification By Reporting Segment By Vertical

  • Balanced Geographic

Exposure with 25% in Fast Growth Regions

  • Current Trends: US

Strength and Western Europe has Stabilized

Resi/Comm, ~24% Energy, ~28% Infrastructure, ~13% Industrial, ~26% Food & Beverage, ~9%

Water & Fluid Solutions, ~44% Technical Solutions, ~23% Valves & Controls, ~33%

By Geography

U.S. and Canada, ~42% Western Europe, ~18% Fast Growth, ~25% Developed Non-U.S., ~15%

  • Balanced Across Verticals
  • Current Trends: Strength in

North American Residential and Food & Beverage; Industrial has Stabilized; Energy Mixed

100% = 2012 sales* of $7.3B

  • Long & Short Cycle

Balanced Portfolio

  • Global Solutions Leader /

Recognized Brands

  • Largest “Valve Company”

Globally

2013 Houston Investor & Analyst Event

*2012 sales. Adjusted results on a pro forma basis for the Flow Control acquisition. See appendix for reconciliation of non GAAP measures.
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SLIDE 10

PENTAIR

10

KEY GROWTH VERTICALS

Leveraging Global Mega Trends

  • Oil & Gas
  • Power
  • Mining
  • Chemical
  • Pharma
  • Manufacturing
  • Agriculture
  • Aquaculture
  • Food & Beverage
  • Municipal
  • Telecom &

Networks

  • Transport
  • Commercial
  • Residential
  • Recreation &

Leisure

*2012 sales. Adjusted results on a pro forma basis for the Flow Control acquisition. See appendix for reconciliation of non GAAP measures. ** PNR estimates.

~28% ~26% ~9% ~13% ~24%

% of Sales*

~4-6% ~2-3% ~6-8% ~Flat ~5-8%

Long-Term Growth Rate**

2013 Houston Investor & Analyst Event

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SLIDE 11

PENTAIR

11

OUR SUCCESS

Positioned Well to be the Next Great Industrial Company

Cultural Transformation… Energized and Committed Our Strategies are Working… 2013 a Great Example Trends in Our Favor… Must Seize Opportunities A Stronger Portfolio… Global Leadership New Growth Framework… to Drive More Organic Growth

2013 Houston Investor & Analyst Event

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SLIDE 12

PENTAIR

12

OUR SUCCESS

Positioned Well to be the Next Great Industrial Company

Cultural Transformation… Energized and Committed Our Strategies are Working… 2013 a Great Example Trends in Our Favor… Must Seize Opportunities A Stronger Portfolio… Global Leadership New Growth Framework… to Drive More Organic Growth

2013 Houston Investor & Analyst Event

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SLIDE 13

PENTAIR

13

High Performance Co.

Today +

Operating Co.

2001 - 2012

Holding Company

1966 - 2000

Strong Execution

  • f Strategies:
  • Portfolio Transformation

—Exited Tools —Expanded in Water —Added Energy

  • PIMS

—Lean / Ops Excellence —Growth (3D / RGP) —Talent Management

  • Solid Merger Integration
  • Technology Innovation
  • “Win Right” Culture

COMPANY TRANSFORMATION ~ 45+ YEARS

Executing on Strategies Profoundly Changed Company

  • Advancing and

Maximizing PIMS

  • A Leader in Key

Regions and Verticals

  • One Pentair
  • Strongly Aligned

Leadership Driving Growth

  • PIMS
  • Strategic Focus
  • Branding
  • More Global
  • Water &

Technical Products Company

  • Entrepreneurial

Start

  • De-centralized

Businesses

  • Strong Focus on

Financial Metrics

  • Grew into

Industrial Company

$1B

$4B >$13B

Market Cap

2013 Houston Investor & Analyst Event

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SLIDE 14

PENTAIR

14

ROBUST STANDARD OPERATING MODEL

Talent Management

Our Global Talent Process to Select, Develop, and Retain Top Talent

Lean Enterprise

The Way We Drive Value to Our Customers Throughout All Our Business Processes by Reducing Waste and Improving Speed and Efficiency

Pentair Integrated Management System

PIMS

Proven Operating Disciplines Rapid Growth Process

The Tools and Language to Drive Above-Average Growth Consistently

3D Process for Innovation

Works in Concert with Rapid Growth to Bring New Products to Market Through Three Key Phases:

  • Discover
  • Develop
  • Deploy

Growth

2013 Houston Investor & Analyst Event

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SLIDE 15

PENTAIR

36% 146% 156% 164% 187% 198% 244% 265% 341% 472% 655% 705% 1324%

S&P 500 EMR MidCap 400 HON MMM DOV ITW UTX DHR ETN PNR ROP AME 15

(1/1/2001 to 11/07/2013)

Pentair Performance is Firmly in the Upper Quartile

’01 – ‘13 TOTAL STOCK RETURN AGAINST SELECT INDUSTRIALS

2013 Houston Investor & Analyst Event

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SLIDE 16

PENTAIR

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TRANSFORMATION … MORE GLOBAL

Portfolio Diversification to “Control Destiny “ $2B 2001 $7.4B 2013F $8.4B 2015T

U.S.

80% 15%

Other Dev. Fast Growth

5%

~40% ~35% ~25% 27%+ ~33% ~40%

2013 Houston Investor & Analyst Event

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SLIDE 17

PENTAIR

2012 2013F 2015T

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FAST GROWTH REGIONS

Current Strength

  • Scale and Resource Numbers
  • Good Manufacturing / Service Footprint
  • Starting to Build Brand Awareness
  • Win Right Culture

Execute on Vision to Make Fast Growth Regions Work

Focus Areas For Growth

Developed Fast Growth

$7.3B ~$7.4B

$5.6B ~$5.7B $1.7B ~$1.8B

  • Grow at GDP+ (~10%+ / Year)
  • More Marketing Talent
  • Each Vertical Has Focus Area …

Energy = Middle East …

  • Continue to Localize Products
  • More Cross Selling /

Collaboration

$8.4B+

$6.1B+ $2.3B+

2013 Houston Investor & Analyst Event

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SLIDE 18

PENTAIR

18

STANDARDIZATION

Significant Savings Opportunity in Operating Expenses G&A Reductions Through Lean Enterprise to Fuel Growth Key Synergy Initiatives: ~$175M Funnel

  • Operating Expense as % of Sales … Goal to

Drop ~200 basis points 2013 to 2015

  • Drive 2013 Savings (Repositioning) and

Standardization Targets for 2014, 2015 and Beyond: − Major Repositioning − Aggressive ERP and Back-office Consolidations (Most Savings 2014+) − G&A: From 8% of Sales to 6% (Legacy PNR Businesses are Under 4%) − ERP: Reduce from ~66 to ~16 − Reporting Entities Reduced by 65% − Other: Reduce Payroll / Acctg. Centers

2013 Houston Investor & Analyst Event

2012 2013F 2015T ~20% ~22% >22% Opex.

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SLIDE 19

PENTAIR

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MARGIN EXPANSION

2012 2013F 2015T

Robust Margin Expansion Highlights Execution Capabilities Operating Margins

Key Drivers 2012 2013

Pricing Cost Productivity Standardization

Expanding Margins

  • Pricing

− Execute on Pricing Management − Targeting >1% of Sales

  • Cost Productivity

− PIMS: Rapid Adoption / Implementation − Growth While Leveraging Structure − Productivity > Inflation & Mix

  • Standardization (previous slide)

− $90M Cost-Out in 2013 − 2 Points of G&A Reduction Targeted by 2015 − Reduce Complexity and Continue Functional Standardization

~11% ~13% >16%

2013 Houston Investor & Analyst Event

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SLIDE 20

PENTAIR

20

OUR SUCCESS

Positioned Well to be the Next Great Industrial Company

Cultural Transformation… Energized and Committed Our Strategies are Working… 2013 a Great Example Trends in Our Favor… Must Seize Opportunities A Stronger Portfolio… Global Leadership New Growth Framework… to Drive More Organic Growth

2013 Houston Investor & Analyst Event

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SLIDE 21

PENTAIR

21

OUR FUTURE: POSITIONING FOR DIFFERENTIATED GROWTH

  • In Strong Position with Mega Trends
  • Maximize Growth with Platform / Vertical Prioritization
  • Driving in New Geographies and Growth Capabilities

Driving Core Important … But Must Pursue Differentiation

2013 Houston Investor & Analyst Event

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SLIDE 22

PENTAIR

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CURRENT TRENDS

US: Steady Recovery (Bright Spot) + Housing Back Strong + Petrochemical Opportunity – Fiscal Uncertainty

Developed Regions Fast Growth Regions

Europe: Could Be Good Growth + Stabilizing Now + Could Surprise to Upside – Difficult Decisions Ahead FGR: Mixed but Slowed in ’12 & ’13 + China 5-yr Plan Attractive +/– China Slow but Still Important – India, Brazil Bouncing Around Resource Rich: Infrastructure Build + Significant Energy Investment + Adding Lots of Jobs – Mining Slow … For Now  In Position to Take Advantage of Trends  U.S. Housing Remains Strong and Europe Improving  Continuing to Add Talent to Key Growth Regions  PIMS Executes on Our Strategies Aggressively

Generally Good-To-Improving Environment

2013 Houston Investor & Analyst Event

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SLIDE 23

PENTAIR

23

THE TRENDS INFORMING OUR STRATEGIC THINKING

Driven by the “New-New” World The Nexus of Demands Driving “Food – Water – Energy”

  • Changing Population & Demographics
  • Increasing Energy Demands
  • Shifts in Food Consumption
  • Water Crises

2013 Houston Investor & Analyst Event

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SLIDE 24

PENTAIR

24

GROWTH* OVER THE NEXT TWO DECADES

Today: 7B

9B

World’s Population Today: $50T

$110T

World GDP More than Doubles Today: $20T

$60T

Middle Class Purchasing Power Triples Today: ~55%

75%

Population in APAC & Africa Today: 2B

5B

Global Middle Class Today: 5 out of 10

7of10

People Living in Urban Areas

Drives Much of Our Thinking and Strategy

  • More Food/Protein Consumption
  • Increased Housing Needs
  • Increased Power Consumption
  • Increased Water Consumption
  • Middle-Class Aspirations
  • More Industrial Production
  • Water / Waste Water Infrastructure
  • More Cars, Rail, Airplanes
  • Increased Oil & Gas Demand
  • Better Living Conditions

2013 Houston Investor & Analyst Event

* PNR Estimates
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SLIDE 25

PENTAIR

25

PENTAIR: POSITION TO BENEFIT

Well Positioned

FOOD WATER ENERGY

+ Ag Pumps / Spray + Aquaculture + Food & Bev Process + Food Service

  • Not Yet Global Ag

+ Global Pump + Global Filtration + Flood Control + Advanced Systems

  • Limited 50Hz Pump

+ Leader in Valves + Leader in Thermal + Separations Technology + Service Model

  • Limited Energy Pumps

2013 Houston Investor & Analyst Event

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SLIDE 26

PENTAIR

3 Reporting Segments

ORGANIZING FOR SUCCESS – CURRENT ALIGNMENT

Platforms are Where We Serve Customers … GBU’s + ELT Aligned to Improve Growth and Productivity Trajectory

26

Water & Fluid Solutions Valves & Controls Technical Solutions

Executive Leadership Team (ELT)

Aquatic Systems Equipment Protection Thermal Management

7 Global Business Units

Filtration & Process Flow Technologies WES Valves & Controls

24 Operating Platforms

Standard Pumps Engineered Pumps Fluid Motion Advanced Filtration Electrical/Cooling Aquaculture Ag Spray Pool Oil & Gas Separation F & B Processing Water Purification

  • Bldg. Infra. Solutions

Actuation & Controls

  • Adv. Ind. Solutions

Food Service Quarter Turn Electronics Pressure Relief Gate, Globe, & Check Water Services Mega-Projects Water Transmission Water Dynamics Clean Air Systems

CEO + COO + CFO + Growth + HR + Legal/Compliance

2013 Houston Investor & Analyst Event

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SLIDE 27

PENTAIR

27

ALIGNING PLATFORMS TO DRIVE GROWTH

Platforms Aligned with Key Growth Verticals

FOOD & BEVERAGE

F & B Processing Food Service Aquaculture Ag Spray

RESI & COMMERCIAL

Fluid Motion Water Purification

  • Bldg. Infra. Solutions

Standard Pumps Pool

ENERGY

Quarter Turn Gate, Globe, & Check

  • Adv. Ind. Solutions

Mega-Projects Water Transmission Electrical/Cooling Oil & Gas Separation Actuation & Control Pressure Relief

INDUSTRIAL

Actuation & Control Quarter Turn Gate, Globe, & Check Electrical/Cooling Water Services Clean Air Systems Advanced Filtration

  • Adv. Ind. Solutions

Pressure Relief

INFRA- STRUCTURE

Advanced Filtration Water Dynamics Electronics Engineered Pumps Water Transmission

2013 Houston Investor & Analyst Event

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SLIDE 28

PENTAIR

28

MAINTAINING LEADERSHIP IN ENERGY

Pentair’s Capabilities and Solutions

WAYS TO WIN

1 2 4 3 5 Product Innovation for Critical Applications – Sub-sea, Cryogenic Expanded Solutions & Service Offerings – HRT, HIPPS, Rentals Fast Growth Region Expansion – Mid-East, China, Russia / CIS, Africa Global Strategy Serving Local Needs PIMS … Best in Class Quality, Delivery, and Standardization

2013F: ~$2.1B ~75% Direct Sales ~25% Indirect Sales ~225 Sales Engineers ~600 Distributors

Actuation & Control Electrical/Cooling Oil & Gas Separation

  • Adv. Ind. Solutions

Quarter Turn Pressure Relief Gate, Globe, & Check Mega-Projects Water Transmission

2013 Houston Investor & Analyst Event

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SLIDE 29

PENTAIR

29

EXPANDING OFFERINGS IN INDUSTRIAL

Led by North American Industrial Recovery

2013F: ~$1.9B ~55% Direct Sales ~45% Indirect Sales ~300 Sales Engineers ~2000 Distributors

WAYS TO WIN

1 2 4 3 5 Expanded Service Offerings – Cooling Audits, Plant Services Fast Growth Region Expansion – Russia, Middle-East, China Maximize NA Distribution Channels Product Innovation for Severe Service Applications PIMS … Best in Class Quality, Delivery, and Standardization

Water Services Clean Air Systems

  • Adv. Ind. Solutions

Pressure Relief Actuation & Control Quarter Turn Gate, Globe, & Check Electrical/Cooling Advanced Filtration

2013 Houston Investor & Analyst Event

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SLIDE 30

PENTAIR

30

MAINTAINING LEADERSHIP IN RESIDENTIAL & COMMERCIAL

Taking Advantage of Residential / Commercial Recovery

WAYS TO WIN

1 2 4 3 5

2013F: ~$1.9B ~5% Direct Sales ~95% Indirect Sales ~500 Sales Engineers ~1200 Distributors

Fast Growth Region Expansion – Middle East & Southeast Asia Led by the US Residential Recovery Expand Eco-Select Offerings and Execute Hybrid DI Product Innovation – Energy Efficiency PIMS … Best in Class Quality, Delivery, and Standardization

Standard Pumps Fluid Motion Pool Water Purification

  • Bldg. Infra. Solutions

2013 Houston Investor & Analyst Event

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SLIDE 31

PENTAIR

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ESTABLISHING LEADERSHIP IN INFRASTRUCTURE

Selectively Choose Where to Play

WAYS TO WIN

1 2 4 3 5

2013F: ~$1B ~70% Direct Sales ~30% Indirect Sales ~200 Sales Engineers ~900 Distributors

Fast Growth Region Expansion – Middle East, SE Asia, Africa Global Flood Control Leadership More Systems / Solutions With Our Products Establish Membrane Technology Leadership – Nano Filtration PIMS … Best in Class Quality, Delivery, and Standardization

Engineered Pumps Advanced Filtration Electronics Water Dynamics Water Transmission

2013 Houston Investor & Analyst Event

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SLIDE 32

PENTAIR

32

EXPANDING LEADERSHIP IN FOOD & BEVERAGE

Food & Bev Offers the Fastest Growth for Pentair

WAYS TO WIN

1 2 4 3 5

2013F: ~$700M ~60% Direct Sales ~40% Indirect Sales ~40 Sales Engineers ~60 Distributors

Fast Growth Region Expansion – Lead in Africa Aquaculture Leadership Globalize Agriculture Strategy Application Expertise – Breweries, Dairy, etc. PIMS … Best in Class Quality, Delivery, and Standardization

Aquaculture Ag Spray Beverage Systems F & B Processing

2013 Houston Investor & Analyst Event

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SLIDE 33

PENTAIR

33

OUR CURRENT LANDSCAPE – FAST GROWTH REGIONS

We Have Real & Global Capabilities

China Africa India Middle East Eastern Europe Latin America

$360M 3,340 6

South East Asia

$350M 1,150 2 $200M 65

  • $390M

2,860 6 $200M 400 2 $100M 1,340 4 $100M 60 1

Total FGRs - Additional Info:

Sales & Mktg Headcount R&D Headcount # of Distributors & Agents 950 350 1,100

Legend: 2013F Ship-to-Sales Headcount Manufacturing Sites

2013 Houston Investor & Analyst Event

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SLIDE 34

PENTAIR

34

FOCUS AREAS – BIG BETS

Several Ways To Win … Increasing Odds by Prioritizing

RESI & COMMERCIAL INFRA- STRUCTURE ENERGY INDUSTRIAL FOOD & BEVERAGE

= Priority / Focus Area

China Middle East Brazil / LAM India SEA Eastern Europe Africa

2013 Houston Investor & Analyst Event

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SLIDE 35

PENTAIR

35

FOCUS AREAS – ADDITIONAL PRIORITIES

… Without Forgetting the Other Nice Opportunities

China Middle East Brazil / LAM India SEA Eastern Europe Africa

RESI & COMMERCIAL INFRA- STRUCTURE ENERGY INDUSTRIAL FOOD & BEVERAGE

= Priority / Focus Area = Opportunity / Core

2013 Houston Investor & Analyst Event

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SLIDE 36

PENTAIR

36

OUR SUCCESS

Positioned Well to be the Next Great Industrial Company

Cultural Transformation… Energized and Committed Our Strategies are Working… 2013 a Great Example Trends in Our Favor… Must Seize Opportunities A Stronger Portfolio… Global Leadership New Growth Framework… to Drive More Organic Growth

2013 Houston Investor & Analyst Event

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SLIDE 37

PENTAIR

STRATEGY

PENTAIR … DRIVING HIGH PERFORMANCE

37

A L I G N M E N T

HOW WE DIFFERENTIATE PENTAIR

  • Purpose, Vision & Strategic Priorities
  • Value Proposition & Competitive Advantage
  • Controlling Our Destiny

HOW WE EXECUTE

  • Standard Operating Model … PIMS
  • Organization Design … Corporate, GBUs, Fast Growth Regions
  • Functional Excellence … Standards & Practices

HOW WE WIN RIGHT

  • Win Right … Pentair Values
  • Leadership Behaviors … Top Talent
  • How We Work Together

Three Levers … Aligned To Achieve Our Goals

PROCESS & STRUCTURE CULTURE & TALENT

2013 Houston Investor & Analyst Event

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SLIDE 38

PENTAIR

30,000 People Understand “What”, “How” and “Why”

38

PENTAIR … WHAT WE STAND FOR

HOW WE MAKE A DIFFERENCE IN THE WORLD HOW WE ACHIEVE OUR VISION HOW WE WIN RIGHT Purpose

We Improve the Quality of Life of People Around the World

Mission & Vision

Be the Next Great Industrial Company

Destination Company for Customers, Top Talent, & Shareholders

Strategic Principles

  • Invest in Attractive Markets … Where We Compete
  • Control Our Destiny … How We Compete

— “Right-To-Left” Thinking & Actions — Positioning to Win

Operating Principles … PIMS

  • Growth
  • Talent Management
  • Lean Enterprise

WIN

Customer First Accountability for Performance Innovation and Adaptability

RIGHT

Positive Energy Respect and Teamwork Absolute Integrity

2013 Houston Investor & Analyst Event

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SLIDE 39

PENTAIR

ORGANIZING FOR SUCCESS – NEW ALIGNMENT

Simplified & Aligned to Drive Growth & Productivity

39

Executing Growth & Productivity of Prioritized Platforms

5 Global Business Units

Executing the PNR Priorities as Strategic and Operating Leaders

Executive Leadership Team CEO + Executive Officers + Presidents = Aligned Priorities & Agenda

Technical Solutions

Alok Maskara

~$1.7B* Valves & Controls

David Dunbar

~$2.4B* Filtration & Process

Netha Johnson

~$1.1B* Aquatic Systems

Karl Frykman

~$0.7B* Flow Technologies

Phil Pejovich

~$1.7B*

4 Executive Officers Driving PNR-Wide Lean Enterprise

John Stauch/CFO/IT

Driving G&A Transformation

Todd Gleason/Growth

Driving Marketing, Strategy, and Sales Excellence

Fred Koury/HR

Global Talent Management

Angela Lageson/Legal

Global Compliance & Legal

ERP’s, Lean Enterprise, and Financial Performance Aligned and Prioritized Strategies for Growth Deployment of Top Talent Against Most Important Priorities Ensuring Global Compliance

2013 Houston Investor & Analyst Event

* Estimated 2013 sales.
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SLIDE 40

PENTAIR

40

VALUE CREATION: 2015 GOALS

Road Map to ~$5.00 EPS Goal

~$2.73 ~($0.21) ~$2.52 ~$1.80 ~$0.68 ~$5.00

2012* Pre-Deal 2012* Pro Forma Impact 2012* Pro Forma Performance Capital Allocation 2015 Goal

~$0.80 ~$1.00

IST Base

* 2012 adjusted results and 2013 guidance on an adjusted pro forma basis, see appendix for reconciliation of non GAAP measures.

2013 Houston Investor & Analyst Event

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SLIDE 41

PENTAIR 2013 Houston Investor & Analyst Event

THERMAL MANAGEMENT

PENTAIR INVESTOR & ANALYST EVENT

Alok Maskara President, Pentair Thermal Management November 13, 2013

41

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SLIDE 42

PENTAIR 2013 Houston Investor & Analyst Event

KEY MESSAGES

  • Thermal Management is a Great Addition to the Pentair Portfolio
  • Heat Tracing is an Attractive Industry with Favorable Mega Trends
  • Thermal Management Expects to Deliver Above Average Growth

and has Mega Project Upside

  • Integration is Yielding Desired Synergies and PIMS is Expected to

Accelerate Margin Expansion Thermal: Proud to be Part of Pentair!

42

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SLIDE 43

PENTAIR 2013 Houston Investor & Analyst Event

WE PROTECT PIPES FROM FREEZING

Where We Began and Our #1 Application

Sometimes Solving Simple Problems …. but Mostly Solving Difficult Challenges

43

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SLIDE 44

PENTAIR 2013 Houston Investor & Analyst Event

HEAT TRACING: HOW WE PROTECT PIPES

Heat Tracing Maintains Temperature of Fluids by Replacing Heat Lost Through Thermal Insulation

  • n Pipes, Vessels, and

Associated Equipment

Heat-trace Panel (may include circuit breakers, controllers and alarms) Transformer Lighted End Seal Remote Configuration And Monitoring with DigiTrace Supervisor software Insulation Systems Power Connection Heating Cable

Pentair Thermal Provides Complete Solution to Customers

44

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SLIDE 45

PENTAIR 2013 Houston Investor & Analyst Event

Product Quality Portfolio to Meet Customer’s Need Innovative Technology Product Reliability Ease of Use

OUR VALUE PROPOSITION

Leading Product Attributes Global Field Service Network Customer Service Product Brand – Raychem Service Brand – Tracer

A Leader in Brand Equity, Product Quality, Innovation, and Service

Leading Service and Brand Reputation

45

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SLIDE 46

PENTAIR 2013 Houston Investor & Analyst Event

North America Fast Growth Regions Developed Non-NA Heat Tracing & Specialty Cables Control, Monitoring, & Sensing Services

BUSINESS OVERVIEW

Attractive Growth Portfolio

  • Service Enables Customer to

Receive “Warm Pipe Guarantee”

  • Control Monitoring and Sensing

Expands Our Core Product

  • Heat Tracing and Specialty

Cables Remains Our Core Product

  • North America Growth

Driven by Oil Sands and Bakken

  • Fast Growth Regions Driven

by Russia, China, Indonesia

  • Developed Non-NA Driven

by Scandinavia & Offshore

  • Oil & Gas Driven by Process
  • Temp. & Freeze Protection
  • Chemical Driven by Current

Natural Gas Price Dynamics

  • Commercial Driven by Safety

Applications and Luxury Needs

By Vertical

Oil & Gas Chemical Commercial & Residential Power Other

By Product / Service By Geography

Energy – Oil & Gas Industrial – Chemical Residential & Commercial Energy – Power Other

100% = ~$0.7B* 100% = ~$0.7B* 100% = ~$0.7B*

* 2013 estimated sales.

46

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SLIDE 47

PENTAIR 2013 Houston Investor & Analyst Event

Advanced Industrial Solutions Building & Infrastructure Solutions Mega Projects

THERMAL: GO-TO-MARKET OVERVIEW

Broad and Diversified Portfolio

By Sub Platforms

  • Advanced Industrial Solutions:

‒ Oil & Gas 60%, Chemical 20%, Other Industrial 20% ‒ Green Field 30% vs. MRO 70% ‒ EPC 20%, EP 50%, P only 30%

  • Building & Infrastructure Solutions:

‒ Commercial 50%, Infra 30%, Resi 20% ‒ Mostly Product Only Sales

  • Mega Projects

‒ Oil & Gas Projects that are $100M+

Direct Sales Indirect (Distributors, Wholesale)

By Channel

  • Direct Sales are Sales Through Our
  • wn Employees or Exclusive Reps. This

is Our Typical Go-to-Market Approach

  • Indirect Sales Through Distributors

are Used for Harder to Reach End Users Such as Light Commercial and Fast Growth Regions

100% = ~$0.7B* 100% = ~$0.7B*

* 2013 estimated sales.

47

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SLIDE 48

PENTAIR 2013 Houston Investor & Analyst Event

Strong Industrial and Refining Position with Opportunities in Mid/Upstream

THERMAL: ADVANCED INDUSTRIAL SOLUTIONS

48

slide-49
SLIDE 49

PENTAIR 2013 Houston Investor & Analyst Event

EXAMPLE: QATARGAS SULPHUR TRANSFER LINE

  • Application:

– 35Km, Dual, 12-inch Sulphur Pipeline to Transfer Molten Sulphur from 11 Producers to a Pelletizer Facility – Temperature Maintain at 135 C with Tight Allowable Range from 125 C to 145 C

  • Scope: Heating System Design, Specification,

Engineering, Procurement, Construction, and Commissioning

  • Pentair Sulphur Flow Thermal Technology

Includes Fiber Optic Temperature Sensing

  • Future Opportunities Could Include MRO

Services and Leak Detection

A World Leader in Heated Sulphur Pipelines

Sulphur flow simulation

49

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SLIDE 50

PENTAIR 2013 Houston Investor & Analyst Event

THERMAL: BUILDING & INFRASTRUCTURE SOLUTIONS

Building & Infrastructure Solutions: Utilizing Pentair Channels

50

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SLIDE 51

PENTAIR 2013 Houston Investor & Analyst Event

EXAMPLE: BEIJING CAPITAL AIRPORT

  • Application:

– 48Km of Heat Tracing to Prevent Snow and Ice from Forming on the Guideway and Running Surfaces of the Automated People Mover

  • Scope:

– Heating System Design, Specification, and Material Supply

Snow Melting System for Tracks

51

slide-52
SLIDE 52

PENTAIR 2013 Houston Investor & Analyst Event

KEY MESSAGES

  • Thermal Management is a Great Addition to the Pentair Portfolio
  • Heat Tracing is an Attractive Industry with Favorable Mega Trends
  • Thermal Management Expects to Deliver Above Average Growth

and has Mega Project Upside

  • Integration is Yielding Desired Synergies and PIMS is Expected to

Accelerate Margin Expansion Thermal: Proud to be Part of Pentair!

52

slide-53
SLIDE 53

PENTAIR 2013 Houston Investor & Analyst Event

ATTRACTIVE MEGA TRENDS

  • Increased Extraction of Heavy Crude

(Oil Sands, Africa, Russia, etc.) Needs Heat Tracing

  • Growth in Oil Extraction in Colder

Climate Requires Heat Tracing

  • Lower US Natural Gas Prices

Increasing Petrochemical Investments

Energy

  • Infrastructure Investments Especially

in Colder Climate (North China, Russia / CIS)

  • Increased Safety Focus Driving

Demand for Fire Alarm and Fire Sprinkler System Protection

  • Growing Demand for Radiant Floor

Heating Continues (Electric Small Areas / Hydronic Large Areas)

  • Commercial Building Construction

Driving Demand for Gutter Freeze Protection and Hot Water Temperature Applications

Quality of Life

  • Clean Water and Energy Concerns

Pushing More Customers Towards Electrical Heat Tracing vs. Steam

  • Pipeline Leak Environmental Impact

Driving Growth of More Accurate Wire Based Leak Detection Technology

Environment Global Trends Contribute to Thermal’s Growth Outlook Infrastructure

53

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SLIDE 54

PENTAIR

ADVANCED INDUSTRIAL SERVICES LANDSCAPE(TAM)

20 40 60 80

PTM 129 A 108 B 70

C 30 Larger Regional Providers 100 Small Regional Providers 713 P TM 74

A 35

Small Regional Providers 191 PLC/DCS Sy stem Provi ders 100

Small Regional Providers 922 J 818 K 90 Electric & Steam HT Services Other EPCs, Electrical & Mechanical Contractors 11,950 $13,950M

100%

Heat Tracing & Specialty Wiring

$1,150M

Control, Monitoring &Sensing

$400M Steam Products $2,000M

Total = $17,500M

AIS Business More Global in Nature than BIS

Product TAM = $3.5Bn Services TAM = $14.0Bn

Pentair Thermal Management

2013 Houston Investor & Analyst Event

Source: PNR Estimates

54

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SLIDE 55

PENTAIR

BUILDING & INFRASTRUCTURE LANDSCAPE (TAM)

Highly Fragmented, Services Led By Regional Players

Electric TAM = $3.4Bn Hydronic TAM = $6.1Bn

20 40 60 80 100%

Heat Tracing & Specialty Wiring N 96

O 85

Q 42 A 30 S 30 T 30 U 20 LDetection 20

Small Regional Providers 497

$1,020M

Control, Monitoring & Sensing

PTM 64

N 64

O 65

Q 10

W 40

Small Regional Providers 375

$680M

Electric Services

Regional System Designers 300

Regional Installers 900

Global System Designers 150 Global Installers 350

$1,700M

Hydronic Product

P 650 V 370 Larger Regional Providers 500 Small Regional Providers 1,530 $3,050M

Hydronic Services

Hydronic Service Providers 3,050 $3,050M

Total = $9,500M

2013 Houston Investor & Analyst Event

Source: PNR Estimates

Pentair Thermal Management

55

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SLIDE 56

PENTAIR 2013 Houston Investor & Analyst Event

KEY COMPETITORS

Fragmented Industry Structure

Building & Infrastructure Solutions Advanced Industrial Solutions

56

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SLIDE 57

PENTAIR 2013 Houston Investor & Analyst Event

BROAD AND DIVERSIFIED CUSTOMER BASE

Top 20 Customers Make up Only 30% of Total Revenues

41 42.3 Top 20 Customers Total Customer Base

Gross Margin Average %*

Top 20 Customers by Geography

Canada APAC FGR US

  • W. Europe

Top 20 Customers by Type

Oil & Gas EPC Distributors

Top 20 Customers ~30% Remaining 1000+ Customers ~70%

* 2013 estimate

57

slide-58
SLIDE 58

PENTAIR 2013 Houston Investor & Analyst Event

KEY MESSAGES

  • Thermal Management is a Great Addition to the Pentair Portfolio
  • Heat Tracing is an Attractive Industry with Favorable Mega Trends
  • Thermal Management Expects to Deliver Above Average Growth

and has Mega Project Upside

  • Integration is Yielding Desired Synergies and PIMS is Expected to

Accelerate Margin Expansion Thermal: Proud to be Part of Pentair!

58

slide-59
SLIDE 59

PENTAIR 2013 Houston Investor & Analyst Event

2011 2012 2013F 2015T 2011 2012 2013F 2015T

+ mega projects + mega projects

THERMAL: PERFORMANCE OVERVIEW

Strong Earnings Increase, Steady Base Business Growth

Drivers of 6% Anticipated Future Growth

  • Services (Excluding Mega Projects)
  • Fast Growth Regions
  • Innovative New Products

Future Margin Growth: Operational Excellence

  • Integration Synergies
  • Material and Labor Productivity
  • Standardization to Lower G&A - 35%

Reduction in the Next 3 Years Sales ($M) Operating Income ($M)

ROS

10.5%

656

~6-10%

Mega Mega

669 637 735+ 67

87

105 150+

13% 16% 20.5%

59

slide-60
SLIDE 60

PENTAIR 2013 Houston Investor & Analyst Event

2012 2015T

Innovation

THERMAL: 2012 – 2015 GROWTH DRIVERS

RGP Driven Detailed Growth Playbook

Key Drivers

  • Engineering Services
  • Field Construction Services
  • MRO Services
  • Remote Monitoring Services

Key Drivers

  • Russia / CIS
  • China
  • Middle East and Africa

Key Drivers

  • Applications
  • Basic Wire and Cables
  • Control, Monitoring,

and Sensing

2012 2015T

Fast Growth Regions

2012 2015T

Services

Revenue Revenue Vitality

$105M $80M $70M

60

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SLIDE 61

PENTAIR 2013 Houston Investor & Analyst Event

THERMAL GLOBAL FOOTPRINT

Our Strength: 50+ Global Sales & Service Centers

Pentair Service Center Example: Fort McMurray

  • Year of Construction: 2007
  • Employees: 50 Plus up to 500 Field Personnel for Projects
  • Size: 24K sq ft
  • Pentair Annual Revenues: ~ $50 - 100 M
  • Cross-GBU Opportunities

– Currently Shared with Pentair Valves & Controls – Future Opportunity for Water & Fluid Solutions

THERMAL GLOBAL FOOTPRINT

61

slide-62
SLIDE 62

PENTAIR 2013 Houston Investor & Analyst Event

FAST GROWTH REGIONS: RUSSIA / CIS EXAMPLE

Broad Coverage, Strong Growth

Tuymen

5.1 5.7 5.4 12.4 16.2 25.6 18.4 23.7 34.5 39.1 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 Revenue ($M)

62

slide-63
SLIDE 63

PENTAIR 2013 Houston Investor & Analyst Event

HIGHLIGHTS OF POTENTIAL PROJECT FUNNEL

Actively Pursuing Global Projects

Goliat – Korea / Norway Goliat – Korea / Norway Bayer Golden Tiger - China Bayer Golden Tiger - China Seadrill MOSS CS60 - Singapore Seadrill MOSS CS60 - Singapore NWR - Canada NWR - Canada Fort Hills - Canada Fort Hills - Canada Chevron Gorgon - Australia Chevron Gorgon - Australia

50k bbd Refinery Near Edmonton Sanctioned in 2012 Suncor Operated Mine with 160k bpd Bitumen Froth Capacity Marine LNG Offloading Facility. Liquid Fuel and Water Leak Detection Opportunity Korean Built Floating Production, Storage and Offloading Facility for Barents Sea. Pentair Supplied Heat Tracing and Anti-Icing/De-Icing Heat Management System for Expansion at Bayer Material Science Facility in the Shanghai Chemical Industry Park Winterized Semi-Submersible Drilling Rig Built in Singapore for North Atlantic Deployment. Includes Heat Tracing, Anti-Icing and De-Icing

63

slide-64
SLIDE 64

PENTAIR 2013 Houston Investor & Analyst Event

KEY MESSAGES

  • Thermal Management is a Great Addition to the Pentair Portfolio
  • Heat Tracing is an Attractive Industry with Favorable Mega Trends
  • Thermal Management Expects to Deliver Above Average Growth

and has Mega Project Upside

  • Integration is Yielding Desired Synergies and PIMS is Expected to

Accelerate Margin Expansion Thermal: Proud to be Part of Pentair!

64

slide-65
SLIDE 65

PENTAIR 2013 Houston Investor & Analyst Event

ONE PENTAIR: INTEGRATION UPDATE

India Office Consolidation China Plant Consolidation

GBU Meeting or Exceeding IST Targets

Thermal Site at Legacy Pentair Brazil Moscow Office Consolidation Redwood City Lean Transformation Control Panel Insourcing: Hoffman

$400K Annual Savings + Growth $2M Savings in 2014 Secured $4.8M Petrobras Order $500K Annual Savings Plus Growth $~4M Lean Savings in 2013 Eliminated One Shift with Same Output $2M+ Annual Sales Synergies

65

slide-66
SLIDE 66

PENTAIR 2013 Houston Investor & Analyst Event

Scrap Before Scrap Now

PIMS LEAN EXAMPLE: SCRAP REDUCTION

Key Actions: PIMS Playbook

  • Created Lean

Transformation Plan for Scrap Reduction

  • Created Pareto to Prioritize

Opportunities

  • Held Kaizen to Identify

Ways to Reduce Wire Scrap

  • Implemented Team’s

Process Improvement Recommendations

  • Created Visual

Management to Ensure Sustainability

  • Investigated Various

Causes of Wire Breaks (Six Sigma Project) - Addressed Mechanical Defect in Braider

Lowering Our Scrap Costs … One Initiative at a Time

66

slide-67
SLIDE 67

PENTAIR 2013 Houston Investor & Analyst Event

PIMS EXAMPLE: REDUCING MATERIALS COSTS

  • Rationalization of Existing Lighted End

Seal Products with Brighter LEDs and Unique Lens

  • Reducing Costs While Improving

Performance and Durability

Delivering 5%+ Net Material Savings this Year … Strong Funnel for Future Years

Indirect Materials Savings Direct Materials Savings

  • Freight Savings Using Consolidated

Pentair Rate

  • Telecommunication Savings Using

Pentair Renegotiated Contracts

  • Travel Savings from Policy Changes

and Better Rates

  • Other Miscellaneous Savings

Including Office Supplies, Temporary Labor, etc.

$1+M Savings in 2013

Rapid Negotiations Value Engineering

  • Renegotiated Prices of High Volume

Polymers by On-Boarding Alternate Suppliers and Consolidating Purchases

  • Renegotiated Prices of Raw Metals by

Leveraging Pentair Metals’ Expertise

Strategic Sourcing

  • Consolidated Molding Supply Base to

Improve Costs, Quality, and JIT Delivery

  • Cost Modeling to Reduce Conductors’

Fabrication Costs. Qualify Alternates

$5+M Savings in 2013

67

slide-68
SLIDE 68

PENTAIR 2013 Houston Investor & Analyst Event

PIMS RGP – NAM MRO SERVICES EXAMPLE

Alpha Test Underway

  • Offer Tiered MRO Services on an Annuity Contract Basis to Petrochemical

Plants in the Gulf Coast Region to a Combination of Small to Large PTM & Competitive Installations through Direct Channels to Plant / Maintenance Managers

  • US MRO Industrial Market Opportunity Estimated at $150M Annually

(2010)

Concept

68

slide-69
SLIDE 69

PENTAIR 2013 Houston Investor & Analyst Event

Product Overview

  • LSTMI Offers a Lower Sheath

Temperature on the Outer Portion of the Heated Section as Compared to the Standard Alloy 825 MI Heating Product

  • Provides the Customer with

Constructible Designs at a Premium Material Price that is Off-Set by Reductions in Field Installation Labor and On-Going Maintenance Costs

Deploy Develop Discover

Pre-Charter Complete Charter Complete Start Development Complete Prototype (3P) Final Design Freeze Complete Commercialization Plan Complete Product & Process Validation Launch (Jan/2014)

3D Project Status

PIMS 3D INNOVATION: LOW SHEATH TEMPERATURE MI

Enhancing Technology Differentiation

Sectional view of Design D LST MI cable

69

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SLIDE 70

PENTAIR 2013 Houston Investor & Analyst Event

PIMS: HIGH PERFORMANCE “WIN RIGHT” CULTURE

Quick Adoption of Pentair Values

POSITIVE ENERGY We Display a Positive Outlook at All Times ABSOLUTE INTEGRITY We are Committed to Honest and Ethical Business Practices RESPECT AND TEAMWORK We Treat Others With Respect / We Collaborate for Team Success CUSTOMER FIRST We Make it Easy for Customers to Do Business With Pentair ACCOUNTABILITY FOR PERFORMANCE We Commit to High Standards

  • f Performance

INNOVATION AND ADAPTABILITY We Adapt to Changing Circumstances and Excel at Applying New Ideas

NPS Strategy Deployment 3 D Key Leadership Criteria Feedback & Coaching Code of Business Conduct & Ethics

70

slide-71
SLIDE 71

PENTAIR 2013 Houston Investor & Analyst Event

KEY MESSAGES

  • Thermal Management is a Great Addition to the Pentair Portfolio
  • Heat Tracing is an Attractive Industry with Favorable Mega Trends
  • Thermal Management Expects to Deliver Above Average Growth

and has Mega Project Upside

  • Integration is Yielding Desired Synergies and PIMS is Expected to

Accelerate Margin Expansion Thermal: Proud to be Part of Pentair!

71

slide-72
SLIDE 72

PENTAIR

VALVES & CONTROLS

PENTAIR INVESTOR & ANALYST EVENT

David Dunbar President, Pentair Valves & Controls November 13, 2013

72

2013 Houston Investor & Analyst Event

slide-73
SLIDE 73

PENTAIR

KEY MESSAGES

73

Valves & Controls Positioned to Deliver Superior Value

  • Pentair Valves & Controls is a Leading Solution Provider in a Growing,

High Demand, Fragmented Segment

  • We Believe We are Well Positioned to Win Through:

— Breadth of Offering — Superior Application Expertise — Strong Global Presence — Project and Aftermarket Opportunities

  • We Expect to Deliver Shareholder Value Through:

— Organic Revenue Growth — Operation Improvements (PIMS) — Simplification and Standardization (Lean Enterprise)

2013 Houston Investor & Analyst Event

slide-74
SLIDE 74

PENTAIR

74

WE CONTROL FLOW

We are a World Leader in Valves and Controls

74

ACTUATOR: The Muscles A Mechanical Device Used to Open and Close a Valve CONTROLS: The Brains Instruments Used to Monitor, Control, or Diagnose a Valve and Actuator Package VALVE: The Bones A Mechanical Device that Controls the Flow of a Liquid, Gas, or Vapor in a Piping System

2013 Houston Investor & Analyst Event

slide-75
SLIDE 75

PENTAIR

VALVES—CRITICAL TO GLOBAL INFRASTRUCTURE

Our Products Enable Safer, More Efficient, and More Sustainable Operations

From Oil & Gas Upstream Applications in FPSO Vessels that are 6X Larger than an Aircraft Carrier… … to Relief Valves Being the Last Line of Defense Preventing Catastrophic Equipment Failure in Nuclear Power Plants … and Control Valves in Supercritical Steam Power Plants to Meet the Ever Increasing Electricity Demand in the Emerging World … to High Integrity Isolation Valves at an Alumina Refinery with Highly Caustic, High Temperature Fluids Isolation Valves for Liquid Natural Gas Terminals Operating at Extremely Low Temperatures of -320 F Zero Leakage Valves Preventing Escape of Hazardous Gases Like Phosgene in Petrochem Plants

75

Valves are Highly Critical Components for Energy and Industrial Infrastructure

75

2013 Houston Investor & Analyst Event

slide-76
SLIDE 76

PENTAIR

  • $2.4 Billion in Global Sales*
  • 140 Years of Experience
  • 10,000 Employees
  • 50+ Sales Offices
  • 42 Manufacturing Sites
  • 80 Service Centers
  • 900 Patent Filings in Last 20 Years
  • 900+ Technical Sales Staff
  • 1,000+ Application and Customer Service Specialists
  • Our Products

– Sizes Range from 1 Inch to 7 Feet in Diameter – Weights from Ounces to Over 30 Tons – Operate from -370 F to Over 1,100 F – Are Installed on Every Continent on the Planet

Fasani Gate Valve

  • 23 Feet High & e31 Tons
  • Flare Line Isolation at

Petrochemical Plant

VALVES & CONTROLS FAST FACTS

V&C Offers Significant Experience in a Broad Array of Solutions

76

FCT Ball Valve

  • Subsea Pipeline Operation
  • 1,000 Feet Water Depth

2013 Houston Investor & Analyst Event

* 2013 estimated sales.
slide-77
SLIDE 77

PENTAIR

SEGMENT CHARACTERISTICS

Diversified Industry and Geographical Presence

77 Oil & Gas Mining Power Chemical Other Process Middle East ROW

  • Dev. Asia

Latin America

  • N. America

China India Europe Next 10 Competitors Other Competitors Other Local & Regional Competitors PVC

2013 Houston Investor & Analyst Event

  • Target Complex, Difficult

Applications

  • Customers are Super-Majors

/ Majors

  • Requires High Technology &

Expertise

  • Developed Regions Have

Large Installed Base and Aftermarket Activity

  • Emerging Markets Building

New Infrastructure to Support Growth

  • PVC is a Leader
  • ~15 True Global Players
  • Thousands of Small Local

Competitors; Limited Reach and Range

Valve Manufacturers Industry Geography

100% = ~$38B 100% = ~$38B 100% = ~$38B

slide-78
SLIDE 78

PENTAIR

KEY TRENDS

Overall Trends Favorable for Strong Growth

CUSTOMER TRENDS INDUSTRY TRENDS DEMAND TRENDS

+ Increasingly Harsh Operating Environments + Increasing Global Coordination of Large Complex Projects + Growing Focus on Safety + Tightening of Environmental Regulations ‒ Increasing EPC Competition + Oil & Gas Growth at Record Levels + Growth in NA Petrochemical + Power Industry Seeing Coal to Gas Transition + Power Growth in Middle East / Asia ‒ Mining Investment Slowing in the Short Term + Increasing Population and Growing Middle Class Resulting in Greater Demand for Energy and Power

Total Primary Energy Demand

Source: World Energy Outlook 2012 Presentation by Dr. Fatih Birol, IEA Chief Economist.

Mtoe

Source: Citi, JPMorgan, Jefferies, UBS, Morgan Stanley, Deutsche Bank, Bloomberg, BMI

78

2013 Houston Investor & Analyst Event

slide-79
SLIDE 79

PENTAIR

23 25 30 32 36 34 30 36 38 38 40 42 44

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

GROWTH DYNAMICS ARE EXPECTED TO BE SOLID

Forecasting Moderate Growth Through Next 3 Years

  • Global Opportunity for

Valves has Grown ~5% CAGR Since 2004

  • Recent Peak to Trough

Decline of 15%

  • We Expect 4-6% Sales

Growth Through 2016 – Continued Demand for Critical Infrastructure in Developing Markets – Marginal Strengthening in Developed Economies – Increased Project Investments after Minor Slowdown in 2013 CAGR 5% CAGR Global V&C Total Addressable Market (TAM)

$ Billions

Source: EIF 2012, PNR Estimates

2013 Houston Investor & Analyst Event

79

slide-80
SLIDE 80

PENTAIR

CONSISTENT THROUGH THE CYCLE GROWTH

A Result of Product and Industry Breadth

80

$0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Pentair V&C Sales

6.3% CAGR Through the Cycle

2013 Houston Investor & Analyst Event

$M

slide-81
SLIDE 81

PENTAIR

20 40 60 80 100%

Pentair Others Pentair Others Pentair Others Pentair Others

Pentair

Others

VALVES USE ACROSS INDUSTRIES

Pentair is a Leader in Targeted Industry Segments

Source: EIF 2012, PNR Estimates

81

  • Total Segment Opportunity: $38B
  • Pentair Share: ~6%
  • Fragmentation in Current Segments Points to Continued Growth

Opportunities Through Share Gain and Acquisitions

2013 Houston Investor & Analyst Event (Includes Water, Food & Beverage, Pulp & Paper, HVAC, Marine, etc.)

Oil & Gas Mining Power Chemical

slide-82
SLIDE 82

PENTAIR 2013 Houston Investor & Analyst Event

VALVES PROCUREMENT IN PROJECT CYCLE

Valves Procured Late in Large Capital Projects

Long Cycle

  • Compressors
  • Automation

System

  • Pumps
  • Heat Exchangers

“Mid Cycle”

  • Control Valves
  • Automated

Valves

  • Special

Instruments Short Cycle

  • Manual Valves
  • Safety Valves
  • Standard

Instruments

FEED Detailed Design Construction and Installation PRE-FEED Equipment Ordering Project Approval Start-Up Project Approval to Start-up Time in Months

  • Combined Cycle Power Plant: ~18-24
  • Ethylene Plant: ~36-48
  • Offshore Platform: ~48-60
  • FPSO: ~48-60

~12-36 Months from

Project Approval to Valves Orders Operation

82

slide-83
SLIDE 83

PENTAIR

CUSTOMER REQUIREMENTS

Customers Value Better Products

83

32% 13% 13% 9% 9% 8% 7% 5% Valve Performance Lead Time On-Time Delivery Ease of Maintenance Sales Support Technical Support Brand After-Market Service

Customer Key Buying Criteria*

Valve Performance Defined:

  • Cycle Life
  • Leakage (Both Inside and

Outside the Pipe) Better Performance Provides:

  • Process Reliability / Uptime
  • Process Safety / Lower Risk
  • Improved Environmental

Performance

  • Lower Capital Costs
  • Lower Operating Costs

*Non-price attributes Source: PV&C market research 2013 Houston Investor & Analyst Event

slide-84
SLIDE 84

PENTAIR

KEY MESSAGES

84

Valves & Controls Positioned to Deliver Superior Value

  • Pentair Valves & Controls is a Leading Solution Provider in a Growing,

High Demand, Fragmented Segment

  • We Believe We are Well Positioned to Win Through:

— Breadth of Offering — Superior Application Expertise — Strong Global Presence — Project and Aftermarket Opportunities

  • We Expect to Deliver Shareholder Value Through:

— Organic Revenue Growth — Operation Improvements (PIMS) — Simplification and Standardization (Lean Enterprise)

2013 Houston Investor & Analyst Event

slide-85
SLIDE 85

PENTAIR

VALVES & CONTROLS OFFERINGS

85

Leading Global Valves & Controls Supplier … $2.4B

Actuation & Controls Quarter Turn Valves Pressure Management Valves GGC & Control Valves

SALES BY PRODUCT PLATFORM

100% = ~$2.4B*

SALES BY VERTICAL

100% = ~$2.4B*

Energy Industrial Other Developed Fast Growth U.S. & Canada Western Europe

SALES BY GEOGRAPHY

100% = ~$2.4B*

SALES BY CHANNEL

100% = ~$2.4B*

Projects Installed

2013 Houston Investor & Analyst Event

* 2013 estimated sales.
slide-86
SLIDE 86

PENTAIR

QUARTER TURN VALVES

~$1B Estimated Quarter Turn Valves Revenue in 2013

86

SALES BY VERTICAL

Energy Industrial

SALES BY REGION SALES BY CHANNEL MAJOR BRANDS SAMPLE CUSTOMERS KEY GROWTH DRIVERS / VERTICALS PRODUCT

  • Keystone
  • KTM
  • Vanessa

Installed Projects U.S. & Canada Fast Growth Other Developed Western Europe

Butterfly Valve Ball Valve

  • Offshore O&G Platforms
  • FPSO (Floating

Production, Storage, and Offloading)

  • Chemical &

Petrochemical

  • LNG Terminals
  • Food & Beverage
  • Cryogenic Isolation
  • Corrosive Chemical

Isolation

2013 Houston Investor & Analyst Event

Triple Offset Valve

100% = ~$1.0B* 100% = ~$1.0B* 100% = ~$1.0B*

* 2013 estimated sales.
slide-87
SLIDE 87

PENTAIR

PRESSURE MANAGEMENT VALVES

87

SALES BY VERTICAL

Energy Industrial

SALES BY REGION SALES BY CHANNEL MAJOR BRANDS SAMPLE CUSTOMERS KEY GROWTH DRIVERS / VERTICALS PRODUCT

  • Anderson Greenwood
  • Crosby
  • Sempell

Aftermarket Project

Direct Spring Relief Valve Pilot Operated Relief Valve

~$600M Estimated Pressure Management Valves Revenue in 2013

  • Steam Power Plants
  • Nuclear Power Plants
  • Oil and Gas Exploration

and Refining

  • Petrochemical Tank

Farms

  • LNG Terminals
  • Power Plant Steam

Boiler Protection

  • Refinery Tank Protection

U.S. & Canada Fast Growth Other Developed Western Europe Installed Projects

2013 Houston Investor & Analyst Event

100% = ~$0.6B* 100% = ~$0.6B* 100% = ~$0.6B*

* 2013 estimated sales.
slide-88
SLIDE 88

PENTAIR

GATE, GLOBE, CHECK & CONTROL VALVES

88

SALES BY VERTICAL

Energy Industrial

SALES BY REGION SALES BY CHANNEL MAJOR BRANDS SAMPLE CUSTOMERS KEY GROWTH DRIVERS / VERTICALS PRODUCT

  • Clarkson
  • Fasani
  • Sempell

Installed Projects U.S. & Canada Fast Growth Other Developed Western Europe

Knife Gate Valve Globe Valve

~$400M Estimated Gate, Globe, & Check Valves Revenue in 2013

  • Steam Control for

Power Plants

  • Mining Tailings Isolation
  • Steam Power Plants
  • Nuclear Power Plants
  • Copper and Gold

Mining

  • Alumina Refining
  • Oil and Gas Exploration

and Refining

2013 Houston Investor & Analyst Event

100% = ~$0.4B* 100% = ~$0.4B* 100% = ~$0.4B*

* 2013 estimated sales.
slide-89
SLIDE 89

PENTAIR

ACTUATION & CONTROLS

89

SALES BY VERTICAL

Energy Industrial

SALES BY REGION SALES BY CHANNEL MAJOR BRANDS SAMPLE CUSTOMERS KEY GROWTH DRIVERS / VERTICALS PRODUCT

  • Biffi
  • Morin
  • Westlock

Installed Projects U.S. Fast Growth Other Developed

  • W. Europe

Valve Actuator Valve Positioner

~$400M Estimated Actuation & Controls Revenue in 2013

  • ~30% Captive V&C
  • ~70% Other Valve

Companies

  • O&G Pipelines
  • O&G Upstream
  • FPSO (Floating

Production, Storage, and Offloading)

  • Chemical &

Petrochemical

  • LNG Terminals

U.S. & Canada Fast Growth Other Developed Western Europe Energy Industrial

2013 Houston Investor & Analyst Event

100% = ~$0.4B* 100% = ~$0.4B* 100% = ~$0.4B*

* 2013 estimated sales.
slide-90
SLIDE 90

PENTAIR

20 40 60 80 100% Pentair Target Market

Non-Target Pentair Target Market

Non-Target Pentair

Target Market

Non-Target

Target Market Pentair

Target Market

Pentair

Target Market

Non-Target

Pentair

Non- Target

WINNING THROUGH PRODUCT BREADTH

Pentair Valves & Controls is a Leader in all Segments

90

#2 #1 #1

  • Most Product Segments Also Very Fragmented
  • PVC Targets the Highly Engineered and Technical Segments of Each Product Space ($23B)

2013 Houston Investor & Analyst Event (Includes valve parts (seals, etc.), solenoid valves, fittings, etc.; Excludes control, pressure reducing, plug, and manual diaphragm valves)

QT PMV GGC A&C Other Service $9B $4B $12B $2B $9B $2B

Non-Target Market Non-Target Market Non-Target Market Non-Target Market

Quarter Turn Pressure Management Gate, Globe, Check A&C Service Other

(Includes Valve Parts, Solenoid Valves, Fittings, etc.)

Source: EIF 2012, PNR Estimates
slide-91
SLIDE 91

PENTAIR

WINNING THROUGH APPLICATION EXPERTISE

Leading Brands are Trusted for Critical Applications

91

  • 75 Years of

Experience

  • The World’s First

Supplier of Full Bore, Split Body Type Ball Valves

  • Developed the

Resilient Seated Butterfly Valve in 1951

  • Provides Market

Leading Cycle Life

  • Started in 1874
  • Trusted to Protect

Nuclear Submarines and Commercial Nuclear Plants in the US and Across the World

  • A Leading Supplier of

Relief Valves with a Track Record of Product Innovations and Technical Breakthroughs to Solve the Toughest Application Challenges ANDERSON GREENWOOD CROSBY KEYSTONE KTM

2013 Houston Investor & Analyst Event

slide-92
SLIDE 92

PENTAIR

WINNING THROUGH APPLICATION EXPERTISE

Leading Brands are Trusted for Critical Applications

92

  • Developed the Metal

Seat Valve with “Zero Leakage”

  • Used in Highly

Challenging Isolation Applications

  • Pioneer of the Dual

Elastomer Sleeve Slurry Valve

  • One of the Highest Quality

and Most Technologically Advanced Slurry Valves on the Market

  • 140 Years of Experience
  • Deep Expertise in Power

Plant Valve Applications for Both Nuclear and Conventional Fuels

  • A Leading Actuator

Manufacturer for Over 50 Years

  • Wide Range of Standard

and Custom Designed Automation Solutions SEMPELL BIFFI CLARKSON VANESSA

2013 Houston Investor & Analyst Event

slide-93
SLIDE 93

PENTAIR

WINNING WITH GLOBAL PRESENCE

We Can Make Commitments at a Global Level and Execute Consistently Locally

Service Center Mobile Service Center Major Manufacturing Location Major Sales Office

50+ Sales Offices 80 Service Centers 42 Manufacturing Plants

1900 780 1100 2800 1050 650 675 350

93

2013 Houston Investor & Analyst Event

# Employees

slide-94
SLIDE 94

PENTAIR

WINNING WITH GLOBAL PRESENCE

Pentair Provides Global Scale to Serve Our Customers’ Needs

Downstream Activity

UNITED STATES

Upstream Activity Jetty Pipeline Downstream Activty

AUSTRALIA

LNG Storage Tanks

FRANCE

Chevron Wheatstone Project Scope…

  • LNG Plant in Western Australia
  • $29B Project
  • 25M Tonnes / Year LNG Production
  • 650M / Day Cubic Feet Domestic Gas

94

2013 Houston Investor & Analyst Event

PVC Involvement Project Management Sales Offices Plants Service

Pentair Valves & Controls Supplied: Anderson Greenwood & Crosby Relief Valves Biffi Actuators Vanessa Triple Offset Valves Richards Ball Valves

EPC 1

LNG Tank Supplier

EPC 1 EPC 2 Jetty Consortium Pipeline Supplier

slide-95
SLIDE 95

PENTAIR

WINNING WITH GLOBAL PRESENCE

95

Latin America

  • Hiter Acquisition in Brazil
  • Localized Assembly and

Test for Actuators, Pressure Relief, Butterfly, Knife Gate, and Control Valves China

  • Localized Assembly and

Test for Actuators, Butterfly, Ball, Pressure Relief, and Knife Gate Valves India

  • Localized Assembly and

Test for Actuators, Butterfly, and Slurry Valves Middle East

  • KEF Acquisition in UAE
  • Localized Assembly

and Test for Gate, Globe, Check, and Ball Valves

  • Local Design & Development to Meet Regional Needs
  • Local Assembly & Test to Reduce Lead Times

Using Our Global Footprint to Better Serve Our Customers

2013 Houston Investor & Analyst Event

slide-96
SLIDE 96

PENTAIR

WINNING WITH PROJECT AND AFTERMARKET

Valve Growth Driven by Infrastructure Expansion and Operation

96

Refinery (300,000 Barrels Per Day)

  • ~$200M in Valves for Greenfield Site
  • ~$7M in Annual Aftermarket Opportunity

LNG Liquefaction Plant (8 MTPA)

  • ~$150M in Valves for Greenfield Site
  • ~$12M in Annual Aftermarket Opportunity

Alumina Refinery (5 MTPA)

  • ~$50M in Valves for

Greenfield Site

  • ~$5M in Annual

Aftermarket Opportunity

Power Plant (600MW Coal Fired)

  • ~$6M in Valves for

Greenfield Site

  • ~$1M in Annual

Aftermarket Opportunity

2013 Houston Investor & Analyst Event

slide-97
SLIDE 97

PENTAIR

KEY MESSAGES

97

Valves & Controls Positioned to Deliver Superior Value

  • Pentair Valves & Controls is a Leading Solution Provider in a Growing,

High Demand, Fragmented Segment

  • We Believe We are Well Positioned to Win Through:

— Breadth of Offering — Superior Application Expertise — Strong Global Presence — Project and Aftermarket Opportunities

  • We Expect to Deliver Shareholder Value Through:

— Organic Revenue Growth — Operation Improvements (PIMS) — Simplification and Standardization (Lean Enterprise)

2013 Houston Investor & Analyst Event

slide-98
SLIDE 98

PENTAIR

2011 2012 2013F 2015T 2011 2012 2013F 2015T

PNR V&C EXPECTATIONS

Higher Quality of Revenue and Stronger Operating Performance

Top 2014 / 2015 Priorities 1. Drive Organic Revenue Growth Through New Product Developments 2. Capture Growth Through Improved Customer Service and Operations Improvements 3. Simplify Our Business

2013 Houston Investor & Analyst Event

Sales ($B) Operating Income ($M)

2.4

>4%

2.4

2.3

2.7 232

244

295 400+ ROS

10.2% 10.3% 12.5% >15%

98

slide-99
SLIDE 99

PENTAIR

RENEWED PRODUCT INNOVATION

PIMS Tools Driving Standardized Approach to Product Development

99

New Product Sales Have Grown from $0 in 2010 to an Estimated $40M+ in 2013 with a Strong Funnel for 2014+ 1990's 2000's 2010's

Patent Filings

Patent Filings are Back to 1990s Levels Showing Reinvestment in Product Technology ~60 / Year ~28 / Year ~60 / Year

Discover

23 Projects ~ $50M+

Develop Deploy

25 Projects ~ $80M+ 17 Projects ~ $50M+

New Product Development Funnel

3 Year Run Rate Revenue Estimate

2013 Houston Investor & Analyst Event

slide-100
SLIDE 100

PENTAIR

RENEWED PRODUCT INNOVATION

Pentair Valves are Innovative

100

Keystone GR Series Butterfly Valves are More Durable

  • Independent Lab Testing Verifies Cycle Life of 2.5X Our

Nearest Competitor

  • Sizes Ranging from 2” – 72” and 1,000+ Trim Configurations

Vonk Choke Valves Last Longer

  • Unique Rotating Disc Technology Provides 3X Longer Cycle Life than

Competing Products

  • Customer Field Testing in Shale Gas Applications have Shown 4X Longer

Cycle Life Leading to Lower Maintenance Costs Clarkson Knife Gate Valve Solves Customer Problem

  • Canadian Oil Sands Customer was Replacing Knife Gate Valves Every 6 Weeks
  • Pentair Used Computational Fluid Dynamics to Determine Root Cause of

Wear and Designed a New Valve

  • Redesigned Valve now Lasts 2 years—17X Longer than Competing Valve

2013 Houston Investor & Analyst Event

slide-101
SLIDE 101

PENTAIR

RENEWED PRODUCT INNOVATION

Pentair Valves are Innovative

101

Narvik CircTemp Desuperheater Perform More Effectively

  • Optimized for Supercritical Boilers Operating at 1,100 F and to Withstand

2,000 Cycles Annually

  • Independent Lab Testing Verifies a 50% Reduction in Evaporation Rates

Leading to Shorter Pipe Distances, Saving Installation, and Operating Costs Keystone CompoSeal Butterfly Valves are More Environmentally Friendly

  • Patented Composite Two Piece Housing can Operate at 10 Bar and 250 F,

Giving a Light Weight Alternative to Metal Body Valves

  • 70% Lower Carbon Foot Print Compared to an Ordinary Butterfly Valve

with Fully Recyclable Material Vanessa Triple Offset Valves Give Best Isolation

  • First Triple Offset Valve with True Zero Leakage Performance
  • The Preferred Triple Offset Valve in Cryogenic Applications
  • Over $500 Million in Project Wins in Last 5 Years

2013 Houston Investor & Analyst Event

slide-102
SLIDE 102

PENTAIR

RENEWED PRODUCT INNOVATION

Pentair Valves are Innovative

102

Wellbond High Pressure Globe Valve is Easily Repaired

  • Design-for-Maintenance Approach Offers Fastest and Lowest Cost In-

Line Repair vs. Competitors

  • Typical Plant with 100 Valves may see up to $1M in Life Cycle Savings

Clarkson Slurry Knife Gate Valves provide more process uptime

  • Patented Sleeve Design Resists Jamming and Provides Bubble Tight

Shut Off for Slurry Flows

  • Field Replaceable Sleeves Reduce Repair Time and Increase

Operating Up-Time Biffi OLGAS Hydraulic Actuator Provides Record Operating Time

  • Designed for Operation in High-Integrity Pressure Protection

Systems (HIPPS) to Prevent Over-Pressurization

  • Unique Design Allows for Record Closing Time While Preventing

Impact Damage to the Valve

2013 Houston Investor & Analyst Event

slide-103
SLIDE 103

PENTAIR

ORGANIC GROWTH—LEAN

Lean Efforts Driving ~12% Increase in Aftermarket Sales

Aftermarket Focus

  • Focused Resources, Programs, and Incentives to Drive MRO Product Sales
  • Lean Transformation to Simplify RFQ Process and Improve Organization Capability to

Handle Increased Volume

  • Target Inventory Program to Support Off-the-Shelf
  • Rapid Growth Process (RGP) to Test Sites with Opportunities

103

2013 Houston Investor & Analyst Event

Q1 Q2 Q3 Q4 Q1 Q2 Q3

+12% 0.1 0.2 0.3 0.4

Jan Feb Mar Apr May Jun Jul Aug Sep

Global MRO Sales

2012 2013

Pasadena Inside Sales Productivity

Quotes/Person/Hour

Lean Kaizen Event

slide-104
SLIDE 104

PENTAIR

SERVICE FACTS

104

  • 80 Locations
  • 600 Technicians
  • Over 5,000 Customers
  • Over 55,000 Square Meters of Shop Space
  • 200,000 Order Transactions
  • 80 Locations
  • 600 Technicians
  • Over 5,000 Customers
  • Over 55,000 Square Meters of Shop Space
  • 200,000 Order Transactions

A Leading Global Valves Services Network

2013 Houston Investor & Analyst Event

slide-105
SLIDE 105

PENTAIR

GROWTH THROUGH SERVICE CENTER EXPANSION

October 2013 Macae, Brazil New February 2011: Port Arthur, TX New March 2012: Coatzacoalcos, Mexico New August 2013: Tampico, Mexico Extension 2012 Baton Rouge, LA Extension 2012 Pasadena, TX

Latin America

April 2013 Buenos Aires Argentina Vizag Dec 2013 Hazira Dec 2013

Asia

Rayong, Thailand March 2011 Songkla, Thailand October 2010

Pacific

September 2011 Karratha, AUS Extension 2012 Gladstone, AUS

… and Others in Europe, US, Canada

Following Our Customers to Support Them Locally

105

2013 Houston Investor & Analyst Event

slide-106
SLIDE 106

PENTAIR

GROWTH THROUGH AN EXPANDED OFFERING

106

Automation Valves Asset Management Turnaround Planning Turnaround Execution Project Commissioning Diagnostics Spare Parts Supply On Site Repair In Shop Repair

  • Many Service Centers Have Developed Local

Innovative Services Offerings

  • Service Centers were Brought Under Single Global

Management in 2013 to Drive Standardization and Best Practices Across the Network

Innovating to Improve Customers Total Cost of Ownership

Basic Services Higher Value Services

2013 Houston Investor & Analyst Event

slide-107
SLIDE 107

PENTAIR

Key Account Program Creates Organic Growth

107

  • Domain Expertise within Supply Base to

Solve Difficult Application Requirements

  • Supplier Rationalization to Simplify

Supply Chain Operations

  • Standardization to Improve Operations

and Reduce Maintenance Costs

  • Peace of Mind that Products Will

Perform Efficiently, Reliably, and Safely V&C Customer Buying Trends

ORGANIC GROWTH—GLOBAL KEY ACCOUNTS

Value of V&C Key Account Management

  • Leading Engineering Capabilities

Enables Breakthrough Solutions

  • Single Point of Contact Aligns with

Customer Supply Chain Strategy

  • Portfolio of World Class Products

Covers Wide Range of Needs

  • Global Service Footprint Supports

Customer Facilities

2011 2012 2013F 24% CAGR

15% of PV&C Revenue with Strong Growth

Oil & Gas Petrochem Mining Process Power

Global Key Accounts Across Multiple Industries

BP Chevron ConocoPhillips ExxonMobil Shell Total BASF Bayer Dow Sabic BHP Freeport- McMoRan Newmont RioTinto Air Products Praxair Siemens Veolia Alstom

2013 Houston Investor & Analyst Event

slide-108
SLIDE 108

PENTAIR

IMPROVE CUSTOMER EXPERIENCE

PIMS Toolkit Supports Growth for V&C

108

0.31

  • 0.23
  • 0.39

0.08 0.30 0.22 0.31 0.05 Valve Performance Lead Time On-Time Delivery Ease of Maintenance Sales Support Technical Support Brand After-Market Service

V&C Performance vs. Competitors PIMS as Growth Tool

Source: PV&C market research

  • Customers Prefer Our

Products, Support, and Services

  • Key Priority is Improving

Customer Experience Via:  Lean Factory Improvements  Global Sourcing  Office Based Lean

2013 Houston Investor & Analyst Event

slide-109
SLIDE 109

PENTAIR

109

FAST LEAN EXECUTION

Valves & Controls Adopted LEAN Successfully within 12 Months

Expansion

  • f “4 Wall”

Lean to Enterprise

Services and Sales Offices LEAN Begins

Legacy OpEx Lean Assessment 12 LEAN Focus Sites 42 Sites Lean Plans CCF / MMF / PFEP Events Mar 12 Jun 12 Sep 12 Jan 13 Apr 13 Jul 13 Oct 13 Jan 14 Apr 14

LEAN in Our DNA!

PNR / TYC Announcement 1st PIMS Meetings PNR / Flow Control Merger

*Lean Transformation Plan

12 Focus Sites Cover $1B Sales

2013 Houston Investor & Analyst Event

slide-110
SLIDE 110

PENTAIR

IMPROVE CUSTOMER EXPERIENCE—LEAN FACTORY

Improved Lead Times—Sample Results to Date:

  • High Performance Butterfly Valve Lead Times Reduced from 20 Weeks to 6 Weeks

(Breda, Netherlands)

  • Safety Relief Valves Lead Time Reduced from 12 Weeks to 6 Weeks (JOS) and from 12

Weeks to 7 Weeks for OMNIs and 80s (Stafford, TX)

15+ Product Lines Have Seen Lead Time Reductions in Last 9 months

110

Example: Breda, Netherlands After: Productivity Increased by 200%, WIP Reduced by 99%, and Space by 75%

2013 Houston Investor & Analyst Event

slide-111
SLIDE 111

PENTAIR

IMPROVE CUSTOMER EXPERIENCE—LEAN FACTORY

Improved Quality—Sample Results to Date:

  • Reduced Rejects on RPI Actuator Line by 47%
  • 38% Reduction in Slurry Knife Gate Valve Defects
  • Defects on Safety Relief Valve Line Reduced by 62%

Improved Quality Leading to Shorter Lead Times and Lower Costs

111

Example: Armentieres, France After: Building All Small Valves in “One Piece Flow” Reduced Rejects Significantly

Improved First Pass Yields and Less Rework

2013 Houston Investor & Analyst Event

slide-112
SLIDE 112

PENTAIR

IMPROVE CUSTOMER EXPERIENCE—LEAN FACTORY

Increase Available Space—Results to Date:

  • Overall 10%+ Reduction in Space in Our Major Focus Sites Freeing Up Over

250,000 Square Feet of Available Factory Space Utilizing Space to Expand Localization Efforts — Further Reducing Lead Times to Customers

112

Example: Qingpu, China Example: Black Mountain, NC

2013 Houston Investor & Analyst Event

slide-113
SLIDE 113

PENTAIR

IMPROVE CUSTOMER EXPERIENCE—OFFICE LEAN

  • V&C Multi-Million $ Projects are Complex

– Custom Engineered Products – Multiple Plants – Multiple Constituents: Suppliers, Inspection Agencies, Freight Companies, End Users, and EPC Firms – Detailed Testing and Certification Paperwork Required

  • Applying Lean Principles to Managing Projects:

– Variable Staffing to Match Project Phase – Co-Located Office Teams for Hyper Communication – Standard Work for Project Control – Daily Gemba Walks to Identify Issues and Resolve Quickly – Daily Objectives to Drive Results

Customers Praise the Dedicated Focus

113

Daily Gemba Walk for Project Team Early Results Show Improved Delivery, Improved Quality, Reduced Costs, and Happier Customers

2013 Houston Investor & Analyst Event

slide-114
SLIDE 114

PENTAIR

SIMPLIFICATION—LEAN ENTERPRISE

Key Metrics 2010 2013F 2017T Plants 48 ~40 < 40 ERP 39 29 TBD % Production in Destination Region 61% 66% > 75% Product Groups 30+ 12 5

MILESTONES

  • 2010-2011: Dissolved Regional

Organizations and Created Global Vertical Industry Focus

  • 2012: Creation of Global Functional Group

Increased Speed and Efficiency of Decision Making and Execution

  • 2013: Consolidating Product Management

Under 4 Core Global Product Platforms

  • 2014: Begin Rollout of Global ERP Template

and System Consolidation

Aggressively Reducing Complexity

114

We are Building a Lean Business Model to:

  • Improve the Customer Experience
  • Use Our Global Portfolio
  • Create an Efficient High Performance

Global Organization

2013 Houston Investor & Analyst Event

slide-115
SLIDE 115

PENTAIR

KEY MESSAGES

115

Valves & Controls Positioned to Deliver Superior Value

  • Pentair Valves & Controls is a Leading Solution Provider in a Growing,

High Demand, Fragmented Segment

  • We Believe We are Well Positioned to Win Through:

— Breadth of Offering — Superior Application Expertise — Strong Global Presence — Project and Aftermarket Opportunities

  • Expect to Deliver Shareholder Value Through:

— Organic Revenue Growth — Operation Improvements (PIMS) — Simplification and Standardization (Lean Enterprise)

2013 Houston Investor & Analyst Event

slide-116
SLIDE 116

PENTAIR 2013 Houston Investor & Analyst Event

APPENDIX: VALVES 101

116

slide-117
SLIDE 117

PENTAIR

VALVES 101—WHAT IS A VALVE

Valve: A Valve is a Mechanical Device Whose Function is to Control the Flow of Fluids in a Piping System – Control Applied to These Fluids can Take Multiple Forms

  • Starting and Stopping Flow (Isolation or On/Off)
  • Limiting or Managing Fluid Pressure
  • Preventing Reverse Flow (Backflow)
  • Changing Flow Direction
  • Regulating Flow Volume (Throttling)

– Fluids can be Liquids, Gases, and Vapors, and can also be Liquids Carrying Suspended Solid Particles (Slurries)

Source: The Valve Primer, Brent T. Stojkov, Industrial Press Inc.

A “Globe” Valve, Used to Start and Stop Flow A “Pressure Relief” Valve, Used to Regulate Pressure

2013 Houston Investor & Analyst Event

117

slide-118
SLIDE 118

PENTAIR

VALVES 101—QUARTER TURN VALVES

Quarter-Turn Valves: Category of Valves (Such as Ball or Butterfly) Which Require 90 Degree Turn of the Stem to Move from the Fully Open to the Fully Closed Position. Typically Used for Isolation and Throttling Applications.

Ball Valve A Quarter-Turn Valve with a Ball Shaped Closing Element held Between Two Seats. Ball Valves are Widely Used as On/Off Valves, but Some Special Designs are Available for Throttling Applications. Butterfly Valve A Quarter-Turn Valve Which has a Circular Disk as its Closing Element. The Standard Design has the Valve Stem Running Through the Disk, Giving a Symmetrical Appearance. Later Designs Off-Set the Stem, so that the Disk ‘Cams’ into the Valve Seat.

2013 Houston Investor & Analyst Event Source: The Valve Primer, Brent T. Stojkov, Industrial Press Inc.

118

slide-119
SLIDE 119

PENTAIR

VALVES 101—GATE AND GLOBE VALVES

Gate Valve A Multi-Turn Valve Used for Isolation Applications Which has a Gate as its Closing Element. The Gate Moves Linearly, Perpendicular to the Direction of Flow. Gate Valves Provide Robust Sealing and are used Extensively in the Petrochemicals Industries. This Class

  • f Valves also Includes Knife Gate Valves, which have

much Thinner Gates with a Knife-like Edge, Making them Suited to use with Floating Solids. Globe Valve A Multi-Turn Valve with a Closing Element that Moves Perpendicularly to the Valve Body Seat and Generally Seals in a Plane Parallel to the Direction of Flow. This Type

  • f Valve is Suited both to Throttling and

General Flow Control.

2013 Houston Investor & Analyst Event Source: The Valve Primer, Brent T. Stojkov, Industrial Press Inc.

119

slide-120
SLIDE 120

PENTAIR

VALVES 101—CHECK AND CONTROL VALVES

Check Valve A Valve that is Designed to Allow the Fluid to Flow in a Given Direction but Closes to Prevent Backflow. Check Valves (also called Non-Return Valves) are Usually Self- Acting. Control Valve A Valve which Regulates the Flow or Pressure of a

  • Fluid. Control Valves Normally Respond to Signals

Generated by Independent Devices such as Flow Meters, Temperature Gauges, etc. Control Valves are Normally Fitted with Actuators and Positioners.

2013 Houston Investor & Analyst Event Source: The Valve Primer, Brent T. Stojkov, Industrial Press Inc.

120

slide-121
SLIDE 121

PENTAIR

VALVES 101—PRESSURE MANAGEMENT VALVES

Pressure Management Valves: Category of Valves used to Reduce Excess Pressure in Pressurized Systems, for Example a Steam Boiler. Pressure Management Valves Automatically Open to Relieve Overpressure which Prevents Potentially Violent Equipment Failure.

Direct Spring Relief Valves Typically use a Spring to Hold the disc

  • r Piston on the Seat.

Pilot Operated Relief Valves The Difference Between PORV and Spring Loaded PRV is that Pilot Valves use System Pressure to Seal the Valve.

2013 Houston Investor & Analyst Event Source: The Valve Primer, Brent T. Stojkov, Industrial Press Inc.

121

slide-122
SLIDE 122

PENTAIR

VALVES 101—ACTUATORS AND CONTROLS

Actuator Actuators are Mechanical Devices that use Hydraulic, Pneumatic, or Electric Power to Provide the Muscle (Torque or Thrust) Needed to Move a Valve to Open, Closed,

  • r Stop Positions.

Actuators & Controls: Valves can be Operated with a Variety of Mechanisms from Simple Lever Handles and Hand-Wheels to Very Complex Valve Automation Systems.

Gears Gears are Mechanical Devices Used with Valves and / or Actuators to Provide the Muscle (Torque or Thrust) Needed to Move a Valve to Open, Closed, or Stop Positions. Controls Controls are the Brains which Command the Actuators’ Power. They are Instruments and / or Systems Necessary to Provide Local

  • r Remote Monitoring, Control,

and Diagnostics of Valves.

2013 Houston Investor & Analyst Event Source: The Valve Primer, Brent T. Stojkov, Industrial Press Inc.

122

slide-123
SLIDE 123

PENTAIR

123

APPENDIX

GAAP to Non-GAAP Measurements & Reconciliations

2013 Houston Investor & Analyst Event

slide-124
SLIDE 124

PENTAIR

124

REPORTED TO ADJUSTED 2013 RECONCILIATION

Pentair Ltd. and Subsidiaries Reconciliation of the GAAP “As Reported” year ended December 31, 2013 to the “Adjusted” non-GAAP excluding the effect of 2013 adjustments (Unaudited) Actual

In millions, except per-share data

First Quarter Second Quarter Third Quarter Full Year Total Pentair Net sales $ 1,774.5 $ 1,963.7 $ 1,824.8 approx $ 7,400 Operating income—as reported 74.3 225.9 240.0 approx 782

% of net sales 4.2% 11.5% 13.2% approx 10.6%

Adjustments: Inventory step-up and customer backlog 76.8 10.1 — approx 88 Restructuring and other 27.4 32.4 8.7 approx 70 Operating income—as adjusted 178.5 268.4 248.7 approx 940

% of net sales 10.1% 13.7% 13.6% approx 12.7%

Net income attributable to Pentair Ltd.—as reported 51.7 154.1 172.8 approx 549 Gain on sale of business,net of tax (12.5) — — approx (13) Interest expense, net of tax — 1.6 — approx 2 Adjustments,net of tax 80.8 33.5 1.1 approx 115 Net income attributable to Pentair Ltd.—as adjusted 120.0 189.2 173.9 approx 653 Earnings per common share attributable to Pentair Ltd.—diluted Diluted earnings per common share—as reported $ 0.25 $ 0.75 $ 0.85 approx $2.68 - $2.70 Adjustments 0.33 0.17 0.01 approx 0.51 Diluted earnings per common share—as adjusted $ 0.58 $ 0.92 $ 0.86 approx $3.19 - $3.21

2013 Houston Investor & Analyst Event

slide-125
SLIDE 125

PENTAIR

125

REPORTED TO ADJUSTED 2013 RECONCILIATION

Pentair Ltd. and Subsidiaries Reconciliation of the GAAP “As Reported” year ended December 31, 2013 to the “Adjusted” non-GAAP excluding the effect of 2013 adjustments (Unaudited) Actual

In millions

First Quarter Second Quarter Third Quarter Full Year Water & Fluid Solutions Net sales $ 782.0 $ 949.8 $ 814.3 approx $ 3,345 Operating income—as reported 74.8 136.1 105.9 approx 411-416

% of net sales 9.6% 14.3% 13.0% approx 12.4%

Adjustments: Restructuring and other 7.5 6.6 3.5 approx 18 Inventory step-up and customer backlog 0.6 0.2 — approx 1 Operating income—as adjusted 82.9 142.9 109.4 approx 430-435

% of net sales 10.6% 15.0% 13.4% approx 13.0%

Valves & Controls Net sales $ 585.8 $ 619.9 $ 611.5 approx $ 2,400 Operating income (loss)—as reported (18.6) 56.9 76.6 approx 187-192

% of net sales (3.2)% 9.2% 12.5% approx 7.9%

Adjustments: Restructuring and other 7.3 17.0 3.7 approx 28 Inventory step-up and customer backlog 70.6 10.0 — approx 81 Operating income—as adjusted 59.3 83.9 80.3 approx 296-301

% of net sales 10.1% 13.5% 13.1% approx 12.4%

Technical Solutions Net sales $ 410.0 $ 397.4 $ 405.9 approx $ 1,655 Operating income—as reported 53.3 65.1 82.2 approx 292-297

% of net sales 13.0% 16.4% 20.3% approx 17.8%

Adjustments: Restructuring and other 10.7 4.9 1.5 approx 17 Inventory step-up and customer backlog 5.7 — — approx 6 Operating income—as adjusted 69.7 70.0 83.7 approx 315-320

% of net sales 17.0% 17.6% 20.6% approx 19.2%

2013 Houston Investor & Analyst Event

slide-126
SLIDE 126

PENTAIR

126

REPORTED TO ADJUSTED 2012 RECONCILIATION

Pentair Ltd. andSubsidiaries Reconciliation of the GAAP "As Reported" year endedDecember 31, 2012 to the "Adjusted" non-GAAP excluding the effect of 2012 adjustments (Unaudited) First Quarter SecondQuarter ThirdQuarter Fourth Quarter Year

In millions, except per-share data

2012 2012 2012 2012 2012 Total Pentair Net sales 858.2 $ 941.5 $ 865.5 $ 1,750.9 $ 4,416.1 $ Operating income (loss) - as reported 86.5 119.3 55.2 (304.1) (43.1) % of net sales 10.1% 12.7% 6.4% (17.4%) (1.0%) Adjustments: Deal related costs and expenses 11.8 6.3 52.7 12.0 82.8 Inventory step-up and customer backlog — — — 179.6 179.6 Restructuring — 10.4 1.1 55.3 66.8 Trade name impairment — — — 60.7 60.7 Change in accounting method - pension and post-retirement (1.5) (1.5) (1.5) 146.2 141.7 Operating income - as adjusted 96.8 134.5 107.5 149.7 488.5 % of net sales 11.3% 14.3% 12.4% 8.5% 11.1% Net income (loss) attributable to Pentair Ltd. - as reported 61.8 72.8 31.4 (273.1) (107.1) Bond redemption and interest expense (0.8) — 1.8 51.9 52.9 Other adjustments net of tax 3.0 10.9 32.3 320.9 367.1 Net income fromcontinuing operations attributable to Pentair Ltd. - as adjusted 64.0 83.7 65.5 99.7 312.9 Continuing earnings per common share attributable to Pentair Ltd. - diluted Diluted earnings (loss) per common share - as reported 0.62 $ 0.72 $ 0.31 $ (1.31) $ (0.84) $ Adjustments 0.02 0.11 0.33 1.78 3.23 Diluted earnings per common share - as adjusted 0.64 $ 0.83 $ 0.64 $ 0.47 $ 2.39 $

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Note: Inventory step-up and customer backlog reflect amortization of fair market value step-up associated with inventory and in process customer contracts.

REPORTED TO ADJUSTED 2012 RECONCILIATION

Pentair Ltd. andSubsidiaries Reconciliation of the GAAP "As Reported" year endedDecember 31, 2012 to the "Adjusted" non-GAAP excluding the effect of 2012 adjustments (Unaudited) First Quarter SecondQuarter ThirdQuarter Fourth Quarter Year

In millions

2012 2012 2012 2012 2012 Water & FluidSolutions Net sales 587.1 $ 675.4 $ 605.5 $ 771.2 $ 2,639.2 $ Operating income (loss) - as reported 63.7 92.0 69.2 (56.9) 168.0

% of net sales 10.8% 13.6% 11.4% (7.4%) 6.4%

Adjustments: Restructuring — 6.9 1.1 42.5 50.5 Inventory step-up and customer backlog — — — 23.4 23.4 Trade name impairment — — — 49.1 49.1 Operating income - as adjusted 63.7 98.9 70.3 58.1 291.0

% of net sales 10.8% 14.6% 11.6% 7.5% 11.0%

Valves & Controls Net sales — $ — $ — $ 548.6 $ 548.6 $ Operating income (loss) - as reported — — — (76.8) (76.8)

% of net sales 0.0% 0.0% 0.0% (14.0%) (14.0%)

Adjustments: Restructuring — — — 5.1 5.1 Inventory step-up and customer backlog — — — 113.5 113.5 Operating income - as adjusted — — — 41.8 41.8

% of net sales 0.0% 0.0% 0.0% 7.6% 7.6%

Technical Solutions Net sales 272.6 $ 267.5 $ 261.5 $ 434.8 $ 1,236.4 $ Operating income - as reported 50.5 50.6 52.3 11.6 165.0

% of net sales 18.5% 18.9% 20.0% 2.7% 13.3%

Adjustments: Restructuring — 3.1 — 9.7 12.8 Inventory step-up and customer backlog — — — 42.7 42.7 Trade name impairment — — — 11.6 11.6 Operating income - as adjusted 50.5 53.7 52.3 75.6 232.1

% of net sales 18.5% 20.1% 20.0% 17.4% 18.8%

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2012 PRO FORMA ADJUSTMENTS – TOTAL PENTAIR

Note: “Other” adjustments represent the elimination of certain large projects and sales to sanctioned countries (which were terminated prior to the completion of the Flow Control acquisition), changes in corporate allocation assumptions, income taxes, and share count.

Pro Forma Adjustments 2012 Total Pentair

(in millions, except EPS)

Historical Adjusted Results Historical Flow Control Acquisition Depreciation & Amortization Other Adjustments Adjusted Pro Forma Results First Quarter Sales 858.2 $ 995.9 $

  • $

(74.0) $ 1,780.1 $ Operating Income 96.8 $ 124.9 $ (17.1) $ (32.2) $ 172.4 $ Net Income 64.0 $ 93.7 $ (12.8) $ (28.1) $ 116.8 $ Diluted EPS 0.64 $ 0.44 $ (0.06) $ (0.48) $ 0.54 $ Second Quarter Sales 941.5 $ 980.8 $

  • $

(33.2) $ 1,889.1 $ Operating Income 134.5 $ 143.5 $ (17.2) $ (24.0) $ 236.8 $ Net Income 83.7 $ 107.6 $ (12.9) $ (14.0) $ 164.4 $ Diluted EPS 0.83 $ 0.50 $ (0.06) $ (0.50) $ 0.77 $ Third Quarter Sales 865.5 $ 1,019.8 $

  • $

(16.0) $ 1,869.3 $ Operating Income 107.5 $ 119.9 $ (17.3) $ 5.5 $ 215.6 $ Net Income 65.5 $ 89.9 $ (13.0) $ 6.3 $ 148.8 $ Diluted EPS 0.64 $ 0.42 $ (0.06) $ (0.31) $ 0.69 $ Fourth Quarter Sales 1,750.9 $

  • $
  • $

(7.1) $ 1,743.8 $ Operating Income 149.7 $

  • $
  • $

16.6 $ 166.3 $ Net Income 99.7 $

  • $
  • $

12.7 $ 112.4 $ Diluted EPS 0.47 $

  • $
  • $

0.06 $ 0.53 $ Full Year Sales 4,416.1 $ 2,996.5 $

  • $

(130.3) $ 7,282.3 $ Operating Income 488.5 $ 388.3 $ (51.6) $ (34.1) $ 791.1 $ Net Income 312.9 $ 291.3 $ (38.7) $ (23.1) $ 542.4 $ Diluted EPS 2.39 $ 1.36 $ (0.18) $ (1.03) $ 2.54 $

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2012 PRO FORMA ADJUSTMENTS – WATER & FLUID SOLUTIONS

Note: “Other” adjustments represent changes in corporate allocation assumptions

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2012 PRO FORMA ADJUSTMENTS – VALVES & CONTROLS

Note: “Other” adjustments represent the elimination of sales to sanctioned countries (which were terminated prior to the completion of the Flow Control acquisition), and changes in corporate allocation assumptions

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2012 PRO FORMA ADJUSTMENTS – TECHNICAL SOLUTIONS

Note: “Other” adjustments represent the elimination of certain large projects and changes in corporate allocation assumptions.

2013 Houston Investor & Analyst Event