Fluid Handling

Brad Ellis, Senior Vice President

FLUID HANDLING

Results & Guidance

Market Outlook

Driving Growth

Expanding Margins

Summary

2

»

FluidHandling 33%

GeneralIndustrial

22%

Chemical21%

Power10%

Oil & Gas9%

Municipal9%

Non-Res.Construction

29%

FLUID HANDLING

• OUTPERFORMING; CONTINUED SHARE GAINS AND MARGIN EXPANSION

($ Millions) 2015 2016 2017 2018 2019G

Sales 1,091 999 1,043 1,102 1,120

Operating Profit* 126 109 115 129 146

Operating Margin* 11.6% 10.9% 11.1% 11.7% 13.0%

*Excludes Special Items. Please see non-GAAP Financial Measures tables for details.Note: Charts based on 2018 actual results.

»3

United States36%

Western Europe25%

Canada20%

Emerging Markets

16%

Developed Asia-Pacific

3%

»

BACK TO MID-TEEN MARGINS

CONFIDENT IN CONTINUED MARGIN EXPANSION

6%

10%

14%

12%

14%

16%

14%

600

700

800

900

1,000

1,100

1,200

1,300

1,400

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019G

Sales Margins

12%

Global Recession Oil Price

Weakens

*Excludes Special Items. Please see non-GAAP Financial Measures tables for details. Note that adjusted margins do not reflect the recent pension accounting change.

Fluid Handling Sales ($ Millions) and Margin %*

»4

FLUID HANDLING

Results & Guidance

Market Outlook

Driving Growth

Expanding Margins

Summary

5

% of

Total Sales

2018

Actual

Midterm

Outlook

21%

10%

9%

22%

9%

29%

End Markets

Chemical

Power

Oil & Gas

Municipal

Non-Residential Commercial

General Industrial

Total

FLUID HANDLING MARKET — POSITIVE OUTLOOK

6

FLUID HANDLING

Results & Guidance

Market Outlook

Driving Growth

Expanding Margins

Summary

7

»

DRIVING GROWTH — HAZARDOUS / TOXIC EMISSIONS

TRIPLE OFFSET VALVE MULTI-YEAR ROLLOUT ON TRACK TO GENERATE $40M BY 2021

8

»

»

DRIVING GROWTH — TIGHTER EMISSIONS STANDARDS

NEW TOP SEAL SLEEVED PLUG VALVE SHARE GAIN WITHIN CORE CHEMICAL MARKETS

9

»

»

DRIVING GROWTH — CRYOGENIC SOLUTIONS FOR LNG

INVESTED IN TESTING CAPABILITIES FOR ENGINEERED CHECK TO GENERATE $7M BY 2022

10

»

»

DRIVING GROWTH — DETERIORATING WASTE STREAM

NEW CHOPPER PUMP TECHNOLOGY ON TRACK TO GENERATE $10M BY 2021

11

»

»

DRIVING GROWTH — SMART INSTRUMENTATION

INVESTING IN INNOVATIVE PRODUCT PORTFOLIO TO PLAY IN HIGHER GROWTH MARKET

12

»LARGE DIAMETER THERMOPLASTIC

ROTOLINING TECHNOLOGY

»

India Middle EastChina

DRIVING GROWTH — LOCALIZATION

LOCALIZATION INITIATIVES TO GENERATE $7M IN GROWTH BY 2022»13

»

DRIVING GROWTH – SPEED OF QUOTE AND ENGINEERING

»

IDEATION

DESIGN

COST

QUOTE

PROTOTYPE

Order Quote Time Reduced 50%Product Modification from 3 Months to 2 Weeks

Front End Tools / Configurator Deployment

14

»

DRIVING GROWTH — NEW BREAKTHROUGH OPPORTUNITY

LAUNCH OF LARGE DIAMETER LINED PIPE OPENS NEW MARKET TO GENERATE $25M BY 2023

15

»LARGE DIAMETER THERMOPLASTIC

ROTOLINING TECHNOLOGY

FLUID HANDLING

Results & Guidance

Market Outlook

Driving Growth

Expanding Margins

Summary

16

»

EXPANDING MARGINS — REPOSITIONING

ON TRACK TO DELIVER $15M COST SAVINGS BY 2021

17

»

Restructuring in Europe

Consolidating two facilities to existing

plants in US, India, and Mexico

»

Single Piece Flow Visual FactoryLinked Value Stream

EXPANDING MARGINS — SITE TRANSFORMATIONS

LINDAU EXAMPLE: $2M PRODUCTIVITY, 30% LEADTIME REDUCTION, 25% FOOTPRINT REDUCTION

18

»

» …Now take only minutes, without error

EXPANDING MARGINS — ROBOTIC PROCESS AUTOMATION

19

Administrative computer tasks across multiple

systems took several days to complete…

»

India Engineering Center Metal Seated Ball Valve Example

EXPANDING MARGINS — VALUE ENGINEERING

RAMPING UP TO $100M OF REVENUE PER YEAR AT 10% SAVINGS BY 2022

20

»

30%

COST

VA

LU

ECOMPACT

CAST

DESIGN

FLUID HANDLING

Results & Guidance

Market Outlook

Driving Growth

Expanding Margins

Summary

21

»

SUMMARY

22

EXPECTING 100 BPS MARGIN IMPROVEMENT ANNUALLY OVER THE NEXT FEW YEARS

Strong Execution; Great 2018 Results1

Confident in 2019 Guidance2

Continued share gains and margin expansion3

»