Xylem : Investor Overview, Governance & Sustainability Highlights

Published: 2025-01-15 07:57:04 ET XYL

Investor Overview,

Governance &

Sustainability

January 2025

Comprehensive Water Platform Positioned for Value Creation

~$8.5B

(FY24 Guidance) ~20.5%

Adj. EBITDA*

(FY24MarginGuidance)

Revenue

Diversified and Resilient Revenue Mix1 in Attractive End Markets

~23K GlobalEmployees

Our Impact

~20%

~30%

Segment

~20%

~5%

~15%

Geography

~20%~60%

~10%

End Market

~45%

#2 America's

Most Responsible

Companies, 2024

#15 100 Most

Sustainable

Companies, 2024

~30%

Water

Measurement

Infrastructure

and Control

Water Solutions

Solutions

Applied Water

and Services

Emerging Markets

W Europe

Rest of the World

Utilities Building

Industrial Solutions

* See Appendix for definitions of non-GAAP measures

(1) FY2023 Pro Forma

Water Challenges Are Driving Growth

Intensifying Megatrends

Scarcity

Affected populations to double by 2050

Served Addressable Market

Resilience

Water risk could wipe $5.6T from global GDP by 2050

Quality

300-400M tons/yr of industrial waste into waterways

Compounded by Constraints

Management Capacity

25% of US utility workforce to retire by 2030

Affordability

Water infrastructure financing needs to quadruple by 2050

MCS

~$15B

AW ~$80B WI

~$25B~$25B

WSS

~$15B

Xylem Share

~10%

2024

Market CAGR

LSD

2024-2027

Xylem CAGR

MSD

2024-2027

Best Positioned To Enable Transition To Water Security…

Differentiated

Portfolio

Leading Position

Across most end-markets

100+ Years

Experience with trusted brands

~4,300 Patents

Unmatched

Leading

Sustainability

Presence

Expertise

Leadership

40M+ AMI Endpoints1

~3,500 AQUA pro

>4M Metric Tons

Deployed or under contract

Service professionals

CO2e reduction2

80M+ Assets

200+ Branches

>8B m3

Global installed base

Service network

Water pollution prevention2

35K+ Direct

6,000+

>13B m3

Industrial customers

Engineers and salespeople

Water reuse2

…As a trusted partner to customers and communities

(1)

AMI Endpoints refers to smart meters through the Measurement and Control Solutions segment

(2)

Enabled impact of our solutions for customers based on cumulative impact 2019-2023. See our 2023 Sustainability Reportfor more information on our 2025 Sustainability Goals

Driving Resilient Above-Market Growth1

~3% Market Growth

Evoqua Synergies

Innovative Solutions

Strategic Pricing

Simplification

and Services

• High-growth

• Customer-centric

• Differentiated value-

• Differentiated

industrials

organic innovation

based pricing

customer

• Utility penetration

• Acceleration through

• Monetize installed

engagement

• Global expansion

partnerships

base and aftermarket

• Improved lead times

• Innovative business

• Improved transactional

• Faster innovation

models

discipline

~1% Revenue

~2% Above-Market Growth

~(1)% Impact

Synergies

Improved quality of growth and earnings

(1) FY24-27 revenue growth targets presented at the 2024 Investor Day

Growth Synergies With Combined Xylem and Evoqua Portfolio

Scale

Industrial Offering

High-growth verticals

~$6M

Cooling for data center

~$3M

Cooling for microprocessor

manufacturer

~$2M

Emergency response for

energy company

Deepen

Utility Penetration

Advanced treatment technologies

Achieved Synergy Wins

~$8M

Bypass + odor control for

California utility

~$4M

Reuse for European utility

river recharge project

Expand

Services Globally

Scaling beyond N. America

~$9M

Treatment for European

microelectronics plants

~$3M

Process water for Central

America pharma plant

~1% incremental annual growth

Renewed Strategic Focus on Profitable and Systematic Growth

Drive Resilient

Accelerate

Deploy

Above-Market Growth

Margin Expansion

Capital Efficiently

• Evoqua revenue synergies

• Simplification

• Organic core investments

• Innovative solutions and

• Strategic pricing

• Consistent M&A compounder

services

• Operational productivity

• Opportunistic share repurchases

• Strategic pricing

Uniquely positioned to drive value creation and sustainability leadership

Independent Board of Directors with Deep Expertise1

Robert F. Friel

Matthew Pine

Independent Board Chair, Xylem

President & CEO, Xylem

Former Chairman, President & CEO, PerkinElmer

Committees: Leadership Development & Compensation

Jeanne Beliveau-Dunn

Earl Ellis

Chief Executive Officer & President, Claridad

Executive Vice President & CFO, ABM Industries

Committees: Audit; Leadership Development &

Compensation

Committees: Audit (Chair)

Lisa Glatch

Victoria D. Harker

Former President LNG and Net Zero Solutions, Sempra

Former EVP & Chief Financial Officer, TEGNA

Infrastructure

Committees: Leadership Development & Compensation

Committees: Audit; Nominating & Governance

Mark D. Morelli

Jerome A. Peribere

President & CEO, Vontier

Former President & CEO, Sealed Air

Committees: Audit; Leadership Development &

Committees: Nominating & Governance (Chair)

Compensation (Chair)

Lila Tretikov

Uday Yadav

Partner, Head of Artificial Intelligence Strategy,

Chief Executive Officer, TK Elevator

New Enterprise Associates

Committees: Audit; Nominating & Governance

Committees: Nominating & Governance

Global and Diverse Perspectives and Experience

(1) All board members are independent except for Matthew Pine

Committed to Excellence in Corporate Governance

Highlights

Key Priorities

Long-term Profitable Growth and Sustainable Value

Creation

Strong Corporate Governance Profile

Robust Shareholder Engagement

Diverse Board Representation

Performance-based, strategically

aligned compensation design

Record of governance enhancements focused on accountability

Actively Managed Board Composition1 and Succession

Director Tenure

≤3 4-6 7-10 ≥10

Average Tenure: 5.9 years

Director Age

3 3

≤55 56-60 61-65 66-70

Average Age: 61

9 of 10

Directors are independent

5 of 10

Directors have CEO

experience

2 of 10

Directors are ethnically or

racially diverse2

4 of 10

Directors are women2

4 of 10

Directors with origins

outside the U.S. 2

Focus on diverse backgrounds, C-suite experience, and global perspectives

(1) Tenure and age as of November, 2024; gender, ethnicity and global origin as identified by the directors.

11 (2) Based on self-identification of director.

Disclaimer

Xylem Inc. published this content on January 15, 2025, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on January 15, 2025 at 12:56:02.241.