CAUTIONARY STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT
This presentation and discussion contains certain forward-looking statements that are subject to the Safe Harbor and Cautionary language contained in the press release we issued on October 27, 2020, as well as other factors that could cause actual results to differ materially from those discussed and that are disclosed in our filings with the Securities and Exchange Commission.
Some comparisons will refer to certain non-GAAP measures. Our earnings release and SEC filings contain additional information about these non-GAAP measures, why we use them and why we believe they are helpful to investors, and contain reconciliations to GAAP data.
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3Q CY20 PERFORMANCE UPDATE
Consolidated Rexnord
3Q reported net sales decreased (5%) year over year, core growth decreased by (7%)
Adjusted EBITDA(1) decreased by (8%) to $109 million
SCOFR III savings on track to deliver annual structural savings of $20 million as we exit 2021
Investing in our associates and growth breakthroughs
Water Management (WM)
3Q net sales increased by +8% year over year, core growth increased by +5%
Adjusted EBITDA increased +11% yr/yr to $56 million - margin expanded by 60 bps to 28.0%
Process & Motion Control (PMC)
3Q net sales decreased by (13%) year over year, core growth decreased by (13%)
Resumed share repurchases in August - allocated $15 million in 3Q, $96 million through nine months of CY20
Net debt leverage at 2.0x
(1) Non-GAAP measure defined, reconciled, and discussed in the earnings release included in the Form 8-K filed with the Securities and Exchange Commission on October 27, 2020.
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CAPITAL ALLOCATION UPDATE
Maintaining net debt leverage ratio in 2x - 3x range
Leverage ratio of 2.0x at end of September quarter
Committed to $0.08 / share quarterly common stock dividend = 1.0% current yield
Annual increases in dividend rate are anticipated
Allocating $75 million to $150 million to annual share repurchases
Invested $15 million in September quarter, $96 million calendar year-to-date
Maintaining capacity for strategic bolt-on acquisitions
After COVID-related pause - on track in focused areas and targets
Resilient performance creates opportunity
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Rexnord Corporation published this content on 27 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 October 2020 10:39:02 UTC
Zurn Elkay Water Solutions Corp is a pure-play water management company. The Company designs, procures, manufactures, and markets a sustainable product portfolio of specification-driven water management solutions to improve health, human safety and the environment. The Company's product portfolio includes professional grade water safety and control products, flow system products, hygienic and environmental products, and filtered drinking water products for public and private spaces. Its products are marketed and sold under various brand names, including Zurn, Elkay, Wilkins, Green Turtle, World Dryer, StainlessDrains.com, JUST, Hadrian, Wade, and Halsey Taylor. It serves various range of institutional and commercial end markets, and waterworks and residential end markets. The institutional construction end users include education, healthcare, and government segments. The commercial construction end users include retail, office, lodging, dining, warehouse, and sports arena segments.
ZURN ELKAY WATER SOLUTIONS CORPORATION 
