The presentation discusses Watts Water Technologies, a $1.5 billion company that provides water products for residential and commercial applications globally. It outlines Watts' balanced business model, growth strategy focused on innovation and profitable growth through commercial and operational excellence, and capital deployment priorities to create long-term shareholder value. The multi-year transformation is strengthening Watts' foundation and positioning it for margin expansion and earnings growth aligned with favorable macro trends in safety, energy efficiency, and water conservation.
This corporate presentation provides an overview of Thermal Energy International's (TSX-V: TMG) financial summary from 2015 to the last twelve months (LTM) of fiscal year 2021 Q1. It also looks at TEI's investment highlights, energy-saving and carbon emission reduction products and solutions, and recent progress. For more information, visit http://www.thermalenergy.com/investors.html
This corporate presentation provides an overview of Thermal Energy International's (TSX-V: TMG) financial summary from 2015 to the last twelve months (LTM) of fiscal year 2021 Q1. It also looks at TEI's investment highlights, energy-saving and carbon emission reduction products and solutions, and recent progress. For more information, visit http://www.thermalenergy.com/investors.html
Presentation slides for "Revenue Resilience in a Changing Industry: Water & Sewer Utility Needs," presented by Mary Tiger at Winter 2014 NCLGBA Conference on December 11, 2014.
Essential Expertise for Water, Energy and Air: By David Flitman, Senior Executive Vice President & President, Water and Process Services, Nalco Company
American Water, through its subsidiaries, provides high-quality water and wastewater services to approximately 15 million people in more than 47 states, as well as parts of Canada. Headquartered in Voorhees, NJ, we are the largest publicly traded water and wastewater utility company in the United States, and are the parent company to our state subsidiaries. We employ more than 6,400 people who give back to the community each day by doing their part to provide the highest quality service possible. Our professionals are committed to customer service, operational excellence and the delivery of high-quality, reliable drinking water, safe and effective wastewater treatment and release and other water-related management services. Our teams live and work in the communities they serve.
Presentation slides for "Revenue Resilience in a Changing Industry: Water & Sewer Utility Needs," presented by Mary Tiger at Winter 2014 NCLGBA Conference on December 11, 2014.
Essential Expertise for Water, Energy and Air: By David Flitman, Senior Executive Vice President & President, Water and Process Services, Nalco Company
American Water, through its subsidiaries, provides high-quality water and wastewater services to approximately 15 million people in more than 47 states, as well as parts of Canada. Headquartered in Voorhees, NJ, we are the largest publicly traded water and wastewater utility company in the United States, and are the parent company to our state subsidiaries. We employ more than 6,400 people who give back to the community each day by doing their part to provide the highest quality service possible. Our professionals are committed to customer service, operational excellence and the delivery of high-quality, reliable drinking water, safe and effective wastewater treatment and release and other water-related management services. Our teams live and work in the communities they serve.
2. 2
Forward Looking Statements
Certain statements in this presentation constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
These statements are related to forecasts of sales, market dynamics and 2016 outlook
update, capital expenditures, costs and savings associated with realignment activities,
lead free developments and management goals and objectives.
Watts cautions investors that any such forward-looking statements made by Watts are
not guarantees of future performance. All forward-looking statements are subject to
known and unknown risks, uncertainties and contingencies, many that are beyond the
control of Watts, which may cause actual results, performance or achievements to
differ materially from anticipated future results, performance or achievements
expressed or implied by the forward-looking statements.
Factors that might affect forward-looking statements include overall economic and
business conditions, competitive factors, changes in laws affecting Watts, future
acquisitions of material assets or businesses by Watts, the demand for Watts’ products
and services and other factors identified in Watts’ most recent Annual Report on Form
10-K and subsequent reports filed with the SEC.
3. 3
Who We Are
Global Leader in Residential and Commercial Water Products
8/4/2016
• $1.5B Company with Balanced Business
Model
- 60% / 40% revenue split domestic / international
- Strong presence in residential / commercial markets
- Exposure to replacement markets & new
construction
• Leveraging Leading Brands and Key Market
Drivers
- Safety & Regulation
- Energy Efficiency
- Water Conservation
Multi-Year Transformation Underway
- Delivering enhanced margin expansion
Strong Cash Generator Drives Capital
Deployment
Leader in Residential / Commercial Water Products
4. 4
Residential Applications
One of the Broadest Product Offerings …
8/4/2016
BATHROOM
Tempering Valves for Tubs, Showers and Sinks
Electric Tile Warming
Hot Water On Demand Recirculation Systems
Toilet Fill Valves
KITCHEN
Undersink Guardian Thermostatic Mixing Valves
Reverse Osmosis Water Filtration Systems
Ice Maker Filtration Systems
Electric Tile Warming
ALTERNATIVE ENERGY
Solar Control Packages
Geothermal Control Packages
LAUNDRY ROOM
Automatic Washing Machine Shutoff Valves
Water Hammer Arrestors
Anti‐Scale Systems
Gas Ball Valves
Gas Connectors
BOILER
Temperature and Pressure
Gauges
Tempering Valves
Safety Relief Valves
Fill Valves
Backflow Preventers
Boiler Drains
Air Separators
Flow Control Valves
Float Vents
Anti‐Scale Systems
Water Softeners
UV Disinfection Systems
Whole House Filtration Systems
WATER QUALITY
RADIANT HEAT
PRODUCTS
Radiant Underfloor Heating Systems
Snowmelting
Electronic Temperature Controls
Quick Connect Fittings
Hydrocontrol Panels
PEX Tubing
Manifolds
Backflow Preventers
Ball Valves
Drain Tubes
Floor Drains
Gas Connectors
WATER HEATER
T&P Relief Valves
Tempering Valves
Pressure Reducing Valves
Expansion Tanks
Anti‐Scale Systems
6. 6
Investment Thesis
Winning With Commercial, Operational and Innovation Excellence
8/4/2016
Strengthening the
Foundation
Multi-year transformation underway Enhanced portfolio
and more efficient organization; ongoing tailwind
Aligned to
Favorable Macros
and Markets
Leading market positions in residential and commercial
water, addressing global secular macro themes
Focus On
Innovation and
Profitable Growth
Leveraging components to broaden application solutions
offering Investment continues, fueling growth
Accretive Capital
Deployment
Strong cash flow and efficient capital structure enables
more deployment upside; disciplined acquirer
7. 7
Multi-year Transition Underway
8/4/2016
Multi-Year Restructuring Tailwind Helping To Offset Macro Challenges
European Restructuring
● Realigned Cost
Structure to Demand
● Footprint Optimization
● Sourcing Excellence
Americas / Asia
Transformation
● Exited Non-core
Products
● Footprint Optimization
● Sourcing Excellence
Continue to Drive
Productivity; Reinvest
for Growth
● One Watts
● Innovation /
Application Solutions
2013 - 2014
2015 - 2016
2017 & Beyond
8. 8
Attractive End Markets
Balanced Portfolio Providing Tailwind For Growth
8/4/2016
Residential Multi Family /
Commercial
Light / General
Industrial
Healthcare Hospitality Institutional /
Educational
Specialty Products and Systems that Conserve and Safeguard the Flow of Fluid and Energy
Verticals
End
Markets
9. 9
Aligned To Favorable Macro Trends
Addressing Global Secular Macro Themes
8/4/2016
• Code & specification
driven
• Extensive certification
process
• Emerging need globally
SAFETY & REGULATION ENERGY EFFICIENCY WATER CONSERVATION
• Environmental &
emotional drivers
• Code & specification
driven
• Emerging global demand
• Economic and
environmental value
proposition
• Application &
engineering
competencies critical
11. 11
Strong Cash Generation Drives Deployment Upside
Disciplined Capital Deployment
• Investing in high ROI CAPEX
- Reinvestment ratio 80-100%
• Strategic M&A
- Selective acquirer; disciplined valuation
and screening process
• Pay a competitive dividend
- Consistent double-digit increases
• Stable share buyback
- Offset option dilution at minimum
STRONG CASH GENERATION DEPLOYMENT PRIORITIES
2015E 2019T
>100% FCF
Conversion
12. 12
Summary
Stronger Foundation Delivering Long-term Value Creation
8/4/2016
• ~$1.5B Enhanced Water Portfolio
• Global Leading Brands in Highly
Fragmented Industry
• Broad Solutions Across Balanced
Geographies & End Markets
• Strong Presence in Repair/Replace &
New Construction
• Strong Financial Position & Cash
Flow Generation
• Disciplined Capital Allocation
• Grow Faster than Served Markets
• Earnings Growth through Commercial
and Operational Excellence
• Re-investment in Innovation To Drive
Growth and Margin Upside
• >100% Free Cash Flow Generation
• Accelerate Growth through
Disciplined Acquisitions
• Return Excess Cash to Shareholders
WHO WE ARE OUR COMMITTMENTS
