Pentair Investor & Analyst Day November 27, 2012 PENTAIR 2012 INVESTOR & ANALYST DAY FORWARD-LOOKING STATEMENTS CAUTION CONCERNINGFORWARD-LOOKING STATEMENTS This communication contains statements that Pentair believes to be "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the anticipated benefits of the merger or Pentair's anticipated financial results, 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", "expect", "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 Pentair's 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 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 Pentair serves; 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 market 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 Pentair's long-term strategic operating goals. Additional information concerning these and other factors is contained in Pentair's filings with the U.S. Securities and Exchange Commission ("SEC"), including in Pentair’s Quarterly Report on form 10-Q for the quarter ended September 29, 2012. All forward-looking statements speak only as of the date of this communication. Pentair assumes no obligation, and disclaims any obligation, to update the information contained in this communication. PENTAIR 2012 INVESTOR & ANALYST DAY KEY DEFINITIONS FOR TODAY’S PRESENTATION • All References to 2015 Represent Our Long Term Strategic Goals • All References to 2013 Represent Our Full Year Expected Results • All References to 2012 Represent Our Full Year Expected Results, 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 PENTAIR 2012 INVESTOR & ANALYST DAY TODAY’S AGENDA 8:30 – 8:35 Welcome & Agenda Jim Lucas 8:35 – 9:25 Industry Depth, Worldwide Impact Randy Hogan 9:25 – 9:55 More Opportunities Todd Gleason 9:55 – 10:15 Break 10:15 – 10:45 Proven Operating Disciplines Mike Schrock 10:45 – 11:15 Setting & Meeting Expectations John Stauch 11:15 – 12:00 Q&A and Closing Remarks Randy Hogan WELCOME PENTAIR 2012 INVESTOR & ANALYST DAY WELCOME … WHAT YOU’LL HEAR TODAY From Randy: We Have a Solid Foundation, Vision & Strategic Roadmap Why We are Better Positioned Today We Have a Great Culture & Tremendous Energy From Todd: Successful Integration … 30,000 Employees Embracing Change More Synergies and Opportunities We are Off to a Great Start Capturing Synergies From Mike: Pentair Integrated Management System (PIMS) Delivers Value Lean Enterprise Already Being Deployed / Adopted PIMS a Key Enabler to Delivering Synergies Quickly From John: Committed to Our Targets … Roadmap to Deliver Smart & Aggressive Deployment of Capital A New Company Building Off Proven Platforms for Success PENTAIR 2012 INVESTOR & ANALYST DAY Pentair: Industry Depth, Worldwide Impact Pentair Investor & Analyst Day Randall J. Hogan Chairman & Chief Executive Officer November 27, 2012 PENTAIR 2012 INVESTOR & ANALYST DAY CURRENT ENVIRONMENT – 2012 UPDATE 2012 Q3 Year-to-Date Summary Pentair / Flow Control (FC) Integration • “Day 1” Better Than Anticipated and • YTD Core Sales Growth of 1% (Price Planned Offsetting Sluggish Volume) • Minimal Major Transition Service • YTD Margin* Expansion of 70bps to 12.7% Arrangements with Tyco Driven by Productivity • Already Visited over 30 Flow Control Sites • Announced 37th Consecutive Annual and Spoke to ~25% of FC Employees Dividend Increase • Increased Confidence in Opportunities • Closed Flow Control (FC) Merger as Related to Functional Structures, Pentair Scheduled on September 28th Integrated Management System, Global • Market / Global Economic Comment Sourcing, and IT + US Residential Steadily Improving • Revenue Synergy Opportunities Identified … + Municipal Backlog Building Energy, Food & Beverage, Pumps, Filtration + Fast Growth Regions Still Growing Systems, and Fast Growth Regions — Western Europe Remains Challenged — Industrial Deceleration Globally Macro Less Certain … Internal Levers to Pull 7 PENTAIR 2012 INVESTOR & ANALYST DAY FINANCIAL TARGETS Revenue ($B) Op Income ($M) EPS ~$8.6 ~$1.3B ~$5.00 $3.10 to ~$7.7 ~$7.5 ~$950 ~$790 $3.30 5% 19% ~$2.52 >25% CAGR CAGR CAGR +3% +20% +27% 2012 2013 2015 2012* 2013* 2015 2012* 2013* 2015 Guidance Goal Guidance Goal Guidance Goal ROS 10.6% ~12% ~15% • Revenue Growth Accelerating – Higher Exposure to Energy … NA Residential Tailwind • Op Income Growth & EPS Driven by Base and IST – ~ 10% CAGR on Base + Benefit of Integration & Standardization Team (IST) Now Let Us Tell You How 88 PENTAIR 2012 INVESTOR & ANALYST DAY WHAT YOU’LL HEAR TODAY • More Balanced • More Global A Stronger • More Diversified Company 1 • Smart Capital Deployment Setting & The New More Meeting 4 2 Opportunities Pentair Expectations • Aggressive & Achievable • Growth • Cost 3 • Standardization Proven Operating Disciplines • PIMS: Focus on Lean Enterprise A New Company Building Off Proven Platforms for Success 9 PENTAIR 2012 INVESTOR & ANALYST DAY A STRONGER COMPANY TODAY More Balanced … More Global … More Diversified Solid Foundation Better Portfolio Great Future •History of Change •In Great Vertical Markets •Operational Cost Synergies •Well Positioned •More Diverse •Real Growth Synergies •Global Scale •More Balanced •PIMS Adoption Starting •Vision & Strategy •Leading Brands •Steady Financial Outlook Let’s Review Why … 10 PENTAIR 2012 INVESTOR & ANALYST DAY