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REXNORDREXNORD 
Second Quarter 2017
Earnings ReleaseEarnings Release
November 3, 2016November 3, 2016
Replay Information
D ti t ll f (888) 843 7419Domestic toll-free: (888) 843-7419
International toll-free: (630) 652-3042
Access code: 4355 1007#
2
Cautionary Statement Under the
Private Securities Litigation Reform ActPrivate Securities Litigation Reform Act
This presentation and discussion contains certain forward-
looking statements that are subject to the Safe Harbor andlooking statements that are subject to the Safe Harbor and
Cautionary language contained in the press release we
issued on November 2, 2016, 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
3
investors, and contain reconciliations to GAAP data.
Situation Analysis
 2Q earnings in line
 Net sales increase 1%, including 1% drag from RHF product line exit – core sales(1) decline 2%
G S f $ S(1) f $ GAAP EPS of $0.24 – Adjusted EPS(1) of $0.38
 Cambridge contributes approximately 4% to 2Q sales growth with favorable outlook
 Process & Motion Control delivers in-line results, positive sales growth
 Global aftermarket revenue increases as industrial distribution sell-through stabilizes
 Positive growth in consumer-facing, aerospace end markets augmented by acquisition
 Water Management results reflect infrastructure project deferrals
 Project timelines extend, particularly in Middle East, cutting into second-half outlook
 US nonresidential building construction growth uneven, but outlook remains positive
 Updating guidance for fiscal 2017 Earnings per Share Updating guidance for fiscal 2017 Earnings per Share
 Revised GAAP EPS guidance is $0.75-0.81 – revised Adjusted EPS guidance is $1.32-1.38
 More cautious end market growth assumptions yield lower core growth outlook of ~(3%)
 Supply chain optimization & footprint repositioning on track to deliver $30 million annual savings
4
(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 November 2, 2016.
Key FY17 Macro Assumptions
Previous Updated
FY17 FY17
Market MarketMarket Market
End Market Forecast Forecast
US Commercial Construction + MSD + MSD
US Institutional Construction + MSD + LSD Lower
European Water & Wastewater Infrastructure FLAT FLAT
ROW Water & Wastewater Infrastructure + LSD (LDD) Lower
US & Canada Industrial Distribution (LSD) (LSD)
European Industrial Distribution + LSD + LSD
ROW Industrial Distribution + LSD + LSD
Global Food & Beverage + LSD + LSD
FLAT FLATGlobal Commercial Aerospace FLAT FLAT
Global Process Industries (MDD) (HDD) Lower
Weighted Average (3%) - 0% (4%) - (3%) (200 bps)
5
Note: Table illustrates percentage growth rates. L/M/H = Low/Mid/High; SD = Single-Digit; DD = Double-Digit.
Q2 FY17 Net Income & Adjustments
$ in millions
Net Income
Diluted
EPS
Net Income
Diluted
EPS
Q2 FY17 Q2 FY16
As Reported (GAAP Continuing Operations) $24.6 $0.24 $22.6 $0.22
Amortization 10.5 0.10 14.2 0.14
R i E 4 4 0 04 2 0 03Restructuring Expense 4.4 0.04 2.7 0.03
Acquisition-Related Fair Value Adjustment 3.3 0.03 - -
Supply Chain Optimization & Footprint
Repositioning Program (1)
0.8 0.01 0.4 -
Impact of RHF Product Line (2) 2.3 0.02 4.3 0.04
All Other (3) 0.7 0.01 1.0 0.01
Tax Impact on Adjustments (4) (7.0) (0.07) (7.8) (0.08)
As Adjusted (Non-GAAP) $39.6 $0.38 $37.4 $0.36
(1) Represents accelerated depreciation associated with our strategic supply chain optimization and footprint repositioning initiatives.
(2) Operating loss of RHF product line, excluding restructuring and other nonrecurring items.
(3) Other expense, net includes the impact of foreign currency transactions, sale of property, plant and equipment, and other
i ll i d
6
miscellaneous income and expense.
(4) The tax rates used to calculate adjusted net income and adjusted earnings per share are based on a transaction-specific basis at
the applicable jurisdictional rate.
Q2 FY17 Results Summary
$ in millions
(except per share amounts)
Q2 FY17 Q2 FY16 $ change % change
Net sales $491 $486 $5 +1%
Net sales, excluding RHF exit $486 $477 $9 +2%
- Core -2%
- Acquisitions +4%
- Currency -0%
GAAP Operating Income $53 $56 ($3) -5%
% of sales 10.7% 11.4% -70 bps
Adjusted EBITDA (1) $90 $93 ($3) -3%Adjusted EBITDA (1) $90 $93 ($3) -3%
% of sales, excl RHF exit 18.6% 19.5% -90 bps
GAAP Net Income $25 $23 $2 +9%
Adjusted Net Income (1) $40 $37 $3 +6%
GAAP Diluted Earnings Per Share
Adjusted Earnings Per Share (1)
$0.24
$0.38
$0.22
$0.36
$0.02
$0.02
+9%
+6%
Adjusted EBITDA & EPS in line
7
(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 November 2, 2016.
Process & Motion Control
$ in millions Q2 FY17 Q2 FY16 $ change % change
Net sales
- Core
- Acquisitions
- Currency
$287 $269 $18 +7%
-1%
+8%
-0%
GAAP Operating Income $37 $34 $3 +9%
% of sales 12.9% 12.6% +30 bps
Adjusted EBITDA (1) $61 $56 $5 +9%
% of sales 21.2% 20.7% +50 bps
Improved core growth, solid Cambridge contribution
(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 November 2, 2016.
8
Water Management
$ in millions Q2 FY17 Q2 FY16 $ change % change
Net sales
Net sales, excl RHF exit
- Core
- Acquisitions
$204
$199
$217
$209
($13)
($10)
-6%
-5%
-4%
n/a
- Currency -1%
GAAP Operating Income $26 $29 ($3) -9%
% of sales 12 7% 13 2% -50 bps% of sales 12.7% 13.2% -50 bps
Adjusted EBITDA (1) $38 $44 ($6) -13%
% f l l RHF it 19 1% 20 9% 180 b
Project deferrals affect quarter, outlook
% of sales, excl RHF exit 19.1% 20.9% -180 bps
(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 November 2, 2016.
9
Capital Structure
$ in millions 9/30/16 6/30/16 3/31/16
Cash $209 $183 $485
R l B i $0 $0 $0Revolver Borrowings $0 $0 $0
A/R Facility Borrowings $0 $0 $0
Term Debt $1,784 $1,783 $1,881
Other Debt (1) $11 $11 $12
Total Debt $1,795 $1,794 $1,893
Total Net Debt $1,586 $1,611 $1,408
Net Debt Leverage Ratio (2) 4.3x 4.3x 3.8x
Total Liquidity (3) $554 $529 $829
(1) Other Debt includes a $28M New Market Tax Credit Receivable, this Receivable
offsets a $37M payable also included in Other Debt in all periods presented.
(2) Defined as the ratio of total debt less cash to pro forma LTM Adjusted EBITDA.
(3) Defined as cash and cash equivalents plus additional borrowing capacity.
Ample liquidity enhanced by operating cash flow
10
Fiscal 2017 Outlook
$ in Millions, except per-share amounts$ in Millions, except per share amounts
Rexnord Corporation Full Year Range
Core Sales (1) Growth ~ (3%)
Key Fiscal 2017 Assumptions
Interest Expense w/LIBOR ≤ 1% ~$94
R d C ti Q3 R
Adjusted EPS (1) $1.32 - $1.38
Free Cash Flow (1) > Net Income
Depreciation and Amortization (2) ~$99
Effective Tax Rate ~25%
Capital Expenditures ~3% of sales
Rexnord Corporation Q3 Range
Sales $453 - $463
Effective Tax Rate ~34%
Fully Diluted Shares Outstanding ~104 million
(2) Excludes an estimated $9 million of accelerated depreciation
related to supply chain optimization and footprint repositioning
initiatives.
Adjusted EPS (1) $0.23 - $0.26
(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 November 2,
20162016.
11
Updating FY17 guidance for core growth, adjusted EPS

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Rexnord Corporation (RXN) Second Quarter Fiscal Year 2017 Earnings Release

  • 2. Replay Information D ti t ll f (888) 843 7419Domestic toll-free: (888) 843-7419 International toll-free: (630) 652-3042 Access code: 4355 1007# 2
  • 3. Cautionary Statement Under the Private Securities Litigation Reform ActPrivate Securities Litigation Reform Act This presentation and discussion contains certain forward- looking statements that are subject to the Safe Harbor andlooking statements that are subject to the Safe Harbor and Cautionary language contained in the press release we issued on November 2, 2016, 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 3 investors, and contain reconciliations to GAAP data.
  • 4. Situation Analysis  2Q earnings in line  Net sales increase 1%, including 1% drag from RHF product line exit – core sales(1) decline 2% G S f $ S(1) f $ GAAP EPS of $0.24 – Adjusted EPS(1) of $0.38  Cambridge contributes approximately 4% to 2Q sales growth with favorable outlook  Process & Motion Control delivers in-line results, positive sales growth  Global aftermarket revenue increases as industrial distribution sell-through stabilizes  Positive growth in consumer-facing, aerospace end markets augmented by acquisition  Water Management results reflect infrastructure project deferrals  Project timelines extend, particularly in Middle East, cutting into second-half outlook  US nonresidential building construction growth uneven, but outlook remains positive  Updating guidance for fiscal 2017 Earnings per Share Updating guidance for fiscal 2017 Earnings per Share  Revised GAAP EPS guidance is $0.75-0.81 – revised Adjusted EPS guidance is $1.32-1.38  More cautious end market growth assumptions yield lower core growth outlook of ~(3%)  Supply chain optimization & footprint repositioning on track to deliver $30 million annual savings 4 (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 November 2, 2016.
  • 5. Key FY17 Macro Assumptions Previous Updated FY17 FY17 Market MarketMarket Market End Market Forecast Forecast US Commercial Construction + MSD + MSD US Institutional Construction + MSD + LSD Lower European Water & Wastewater Infrastructure FLAT FLAT ROW Water & Wastewater Infrastructure + LSD (LDD) Lower US & Canada Industrial Distribution (LSD) (LSD) European Industrial Distribution + LSD + LSD ROW Industrial Distribution + LSD + LSD Global Food & Beverage + LSD + LSD FLAT FLATGlobal Commercial Aerospace FLAT FLAT Global Process Industries (MDD) (HDD) Lower Weighted Average (3%) - 0% (4%) - (3%) (200 bps) 5 Note: Table illustrates percentage growth rates. L/M/H = Low/Mid/High; SD = Single-Digit; DD = Double-Digit.
  • 6. Q2 FY17 Net Income & Adjustments $ in millions Net Income Diluted EPS Net Income Diluted EPS Q2 FY17 Q2 FY16 As Reported (GAAP Continuing Operations) $24.6 $0.24 $22.6 $0.22 Amortization 10.5 0.10 14.2 0.14 R i E 4 4 0 04 2 0 03Restructuring Expense 4.4 0.04 2.7 0.03 Acquisition-Related Fair Value Adjustment 3.3 0.03 - - Supply Chain Optimization & Footprint Repositioning Program (1) 0.8 0.01 0.4 - Impact of RHF Product Line (2) 2.3 0.02 4.3 0.04 All Other (3) 0.7 0.01 1.0 0.01 Tax Impact on Adjustments (4) (7.0) (0.07) (7.8) (0.08) As Adjusted (Non-GAAP) $39.6 $0.38 $37.4 $0.36 (1) Represents accelerated depreciation associated with our strategic supply chain optimization and footprint repositioning initiatives. (2) Operating loss of RHF product line, excluding restructuring and other nonrecurring items. (3) Other expense, net includes the impact of foreign currency transactions, sale of property, plant and equipment, and other i ll i d 6 miscellaneous income and expense. (4) The tax rates used to calculate adjusted net income and adjusted earnings per share are based on a transaction-specific basis at the applicable jurisdictional rate.
  • 7. Q2 FY17 Results Summary $ in millions (except per share amounts) Q2 FY17 Q2 FY16 $ change % change Net sales $491 $486 $5 +1% Net sales, excluding RHF exit $486 $477 $9 +2% - Core -2% - Acquisitions +4% - Currency -0% GAAP Operating Income $53 $56 ($3) -5% % of sales 10.7% 11.4% -70 bps Adjusted EBITDA (1) $90 $93 ($3) -3%Adjusted EBITDA (1) $90 $93 ($3) -3% % of sales, excl RHF exit 18.6% 19.5% -90 bps GAAP Net Income $25 $23 $2 +9% Adjusted Net Income (1) $40 $37 $3 +6% GAAP Diluted Earnings Per Share Adjusted Earnings Per Share (1) $0.24 $0.38 $0.22 $0.36 $0.02 $0.02 +9% +6% Adjusted EBITDA & EPS in line 7 (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 November 2, 2016.
  • 8. Process & Motion Control $ in millions Q2 FY17 Q2 FY16 $ change % change Net sales - Core - Acquisitions - Currency $287 $269 $18 +7% -1% +8% -0% GAAP Operating Income $37 $34 $3 +9% % of sales 12.9% 12.6% +30 bps Adjusted EBITDA (1) $61 $56 $5 +9% % of sales 21.2% 20.7% +50 bps Improved core growth, solid Cambridge contribution (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 November 2, 2016. 8
  • 9. Water Management $ in millions Q2 FY17 Q2 FY16 $ change % change Net sales Net sales, excl RHF exit - Core - Acquisitions $204 $199 $217 $209 ($13) ($10) -6% -5% -4% n/a - Currency -1% GAAP Operating Income $26 $29 ($3) -9% % of sales 12 7% 13 2% -50 bps% of sales 12.7% 13.2% -50 bps Adjusted EBITDA (1) $38 $44 ($6) -13% % f l l RHF it 19 1% 20 9% 180 b Project deferrals affect quarter, outlook % of sales, excl RHF exit 19.1% 20.9% -180 bps (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 November 2, 2016. 9
  • 10. Capital Structure $ in millions 9/30/16 6/30/16 3/31/16 Cash $209 $183 $485 R l B i $0 $0 $0Revolver Borrowings $0 $0 $0 A/R Facility Borrowings $0 $0 $0 Term Debt $1,784 $1,783 $1,881 Other Debt (1) $11 $11 $12 Total Debt $1,795 $1,794 $1,893 Total Net Debt $1,586 $1,611 $1,408 Net Debt Leverage Ratio (2) 4.3x 4.3x 3.8x Total Liquidity (3) $554 $529 $829 (1) Other Debt includes a $28M New Market Tax Credit Receivable, this Receivable offsets a $37M payable also included in Other Debt in all periods presented. (2) Defined as the ratio of total debt less cash to pro forma LTM Adjusted EBITDA. (3) Defined as cash and cash equivalents plus additional borrowing capacity. Ample liquidity enhanced by operating cash flow 10
  • 11. Fiscal 2017 Outlook $ in Millions, except per-share amounts$ in Millions, except per share amounts Rexnord Corporation Full Year Range Core Sales (1) Growth ~ (3%) Key Fiscal 2017 Assumptions Interest Expense w/LIBOR ≤ 1% ~$94 R d C ti Q3 R Adjusted EPS (1) $1.32 - $1.38 Free Cash Flow (1) > Net Income Depreciation and Amortization (2) ~$99 Effective Tax Rate ~25% Capital Expenditures ~3% of sales Rexnord Corporation Q3 Range Sales $453 - $463 Effective Tax Rate ~34% Fully Diluted Shares Outstanding ~104 million (2) Excludes an estimated $9 million of accelerated depreciation related to supply chain optimization and footprint repositioning initiatives. Adjusted EPS (1) $0.23 - $0.26 (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 November 2, 20162016. 11 Updating FY17 guidance for core growth, adjusted EPS