December 2015 Credit Suisse Industrials Conference · US Municipal Bond Issues (Sep YTD): +33% US State & Local Tax Receipts (Jun YTD): +6% source: Dodge Data & Analytics, AIA, US

December 2015

Credit Suisse

Industrials Conference

1

Safe Harbor Statements

This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties evermaterialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-lookingstatements. Accordingly, we caution you not to place undue reliance on these statements. All statements other than statements of historical factcould be deemed forward-looking, including, but not limited to, any projections of financial information; any statements about historical results thatmay suggest trends for our business; any statements of the plans, strategies and objectives of management for future operations; any statementsof expectation or belief regarding future events, technology developments or enforceability of our intellectual property rights; and any statements ofassumptions underlying any of the foregoing.

These statements are based on estimates and information available to us at the time of this presentation and are not guarantees of futureperformance. Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: the impactof our substantial indebtedness; the effect of local, national and international economic, credit and capital market conditions on the economy ingeneral, and on the industries in which we operate in particular; access to available and reasonable financing on a timely basis and the availabilityof financing for our customers; our competitive environment; dependence on independent distributors; general economic and business conditions,market factors and our dependence on customers in cyclical industries; the seasonality of our sales; impact of weather on the demand for ourproducts; changes in technology and manufacturing techniques; loss of key personnel; increases in cost of our raw materials and our possibleinability to increase product prices to offset such increases; the loss of any significant customer; inability to make necessary capital expenditures;risks associated with international operations, which have increased in size due to our recent acquisitions; the costs of environmental complianceand/or the imposition of liabilities under environmental, health and safety laws and regulations; the costs of asbestos claims; a potential impairmentof goodwill and intangible assets; changes in governmental laws and regulations, or the interpretation or enforcement thereof, including forenvironmental matters; viability of key suppliers; reliance on intellectual property; potential product liability claims; work stoppages by unionizedemployees; the costs related to strategic acquisitions or divestitures or the integration of recent and future acquisitions into our business;performance, and potential failure, of our information and data security systems; changes in pension funding requirements and costs of maintaininghealthcare insurance and benefits; and anti-takeover provisions in our charter documents. These and other risks and uncertainties associated withour business are described in our Annual Report on Form 10-K for the year ended March 31, 2015. We assume no obligation and do not intend toupdate these forward-looking statements.

In addition to U.S. GAAP financials, this presentation includes certain financial measures on a non-GAAP basis as defined in the Form 8-K filedwith the Securities and Exchange Commission on November 3, 2015. These historical and forward-looking non-GAAP measures are in addition to,not a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. Our SEC filings contain additionalinformation about these non-GAAP measures and why we use them.

2

Rexnord Highlights

Robust Free Cash Flow

Industry-Leading Profitability

Rexnord Business System

Shift in Portfolio Momentum

Estimated 64% of FY16 Earnings from Water, Food & Bev, Aerospace

Large Majority of Industrial Process Sales in Aftermarket

Building on Sustainable Competitive Advantages

Executing 20+% Footprint Reduction & Repositioning

Planning Under Way for Next Iteration of Future State

Disciplined Capital Allocation

Investing in Above-Market Organic Growth

Longer-Term Shareholder Value Creation with Strategic M&A

3

Rexnord Overview

Note: All figures are FY15. Platform margins exclude corporate expenses.

Rexnord (RXN)

Multi-Platform Industrial • Engineered Products for Specification-Driven Applications

Revenue: $2.05 billion • Adjusted EBITDA: $396 million (20%) • FCF: $203 million

Process & Motion Control

Provide highly-engineered mechanical components used in complex systems

where reliability is critical and cost of downtime is high

Revenue: $1.23 billion • EBITDA Margin: 25%

Water Management

Provide and enhance water quality, safety, flow control, and conservation in

nonresidential construction, water & wastewater infrastructure

Revenue: $0.82 billion • EBITDA Margin: 15%

Rexnord Historical Summary

Consistent Focus on Value Creation4

Valued by Carlyle Apollo IPO Trade*

source: Company reports, Capital IQ. * 52-week high.

Ent Value

($millions)

Adj EBITDA

($millions)

Key

AcquisitionsFalk Zurn GA VAG Precision Euroflex

$ 907

$ 1825

$ 3920

$ 4720

0

1,000

2,000

3,000

4,000

5,000

0

100

200

300

400

500

FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15

Adj EBITDA

Enterprise Value

Rexnord Value Creation

5

Note: EBITDA adjusted to exclude certain non-recurring items per SEC filings.

CAGR calculated w ith consolidated EBITDA, including corporate expenses.

10-Year Revenue Growth ($mm)

10-Year Adjusted EBITDA Growth ($mm)

$811

$1,230

$820

0

500

1000

1500

2000

2500WM

PMC $2,050

$135

$307

$121

0

100

200

300

400

500

FY05 FY15

WM

PMC$396

Substantial Portfolio Shift

6

Improving visibility of runway for core growth & margins

6% CAGR FY12-FY16E

(6%) CAGRFY12-FY16E

Historical Revenue: PMC ex-Aero + Food & Bev

0

200

400

600

800

1000

1200

1400

0

200

400

600

800

1000

1200

1400

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16E

PMC, ex Aero+F&B

Historical Revenue: Water + Aero + F&B

0

200

400

600

800

1000

1200

1400

0

200

400

600

800

1000

1200

1400

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16E

Water Management

Aerospace+ Food & Bev

source: Company reports, estimates.

Rexnord Historical Revenue Development

0

200

400

600

800

1000

1200

1400

0

200

400

600

800

1000

1200

1400

FY

08

FY

09

FY

10

FY

11

FY

12

FY

13

FY

14

FY

15

FY

16E

Water Management

Aerospace+ Food & Bev

PMC, ex Aero+F&B

More Balanced Portfolio

7

Portfolio management & capital allocation will reduce cyclicality

• Water Management is leveraging steady core growth with solid margin expansion.

• Aerospace visibility benefits from high relative exposure to large commercial aircraft build.

• Food & beverage market values product innovation, adds relatively stable demand patterns.

• Significant operating leverage to stabilization and recovery in PMC industrial process markets.

FY15 EBITDA Composition FY16E EBITDA Composition

Note: FY16E based on assumptions consistent with midpoints of FY16 core growth, Adjusted EPS outlook (as of 11/3/15). Adjusted EBITDA defined as per SEC filings.

FY12 EBITDA Composition

PMC, excl F&B +

Aero52%

Food & Beverage

+ Aerospace

24%

Water Manageme

nt24%

WaterManagement

24%

PMC:Aerospace + Food & Beverage

24%

PMC, excl F&B +

Aero48%

Food & Beverage

+ Aerospace

24%

Water Manageme

nt28%

WaterManagement

28%


24%

PMC: excluding Aerospace + F&B

48%PMC, excl

F&B +

Aero36%

Food & Beverage

+ Aerospace

24%

Water Manageme

nt40%

WaterManagement

40%


24% PMC: excluding Aerospace + F&B

36%

PMC: excluding Aerospace + F&B

52%

Key Fundamentals Remain Encouraging

8

AIA Commercial Billings Index (Sept): 50.9AIA Institutional Billings Index (Sept): 51.5AIA Building Design Index (Sept): 52.3Dodge Momentum Index (Sept 3MMA YTY): +12.5%

US Housing Permits (Sept 3MMA YTY): +5.8%US Housing Starts (Sept 3MMA YTY): +13.2%US Nonres Building Starts (YTD Sq Ft YTY): -2.8% US Nonres Building PIP (Aug 3MMA YTY): +11.9%

Institutional Building PIP: +6.6%

US Municipal Bond Issues (Sep YTD): +33%US State & Local Tax Receipts (Jun YTD): +6%

source: Dodge Data & Analytics, AIA, US Dept of Commerce, US Census Bureau, SIFMA

source: Company reports

Boeing Announced Production Rate Increases:737 Current: 42 / month 737 2017: 47 / month, 2018: 52 / month

787 Current: 10 / month787 2016: 12 / month

Airbus Announced Production Rate Increases:A320 Current: 42 / monthA320 2017: 50 / month

A350 Current: 3 / monthA330 2016: 5 / month, 2018: 10 / month0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2014 2015E 2016E 2017E 2018E

Boeing & Airbus Annual Aircraf t Production

Airbus Boeing

PMC Aftermarket Demand Is Less Volatile

9

Substantial cyclical downside appears realized this year

0

20

40

60

FY12 FY13 FY14 FY15 FY16E

Agriculture

0

20

40

60


Cement & Aggregates

0

50

100

150

200

250

300


Mining

Mill Products

Mining, excl MP

0

20

40

60

80

100


Energy

0

20

40

60


Forest Products

Note: Projected PMC FY16 sales mix, excluding aerospace, food & beverage end markets. Total revenue estimates for selected end markets. source: Company reports, estimates.

0%

20%

40%

60%

80%

100%

AFTERMARKET

OEM & EndUser

0

100

200

300

400

500

600


FY16 ID De-Stock

General Industrial & Process

Supply Chain Optimization & Footprint Repositioning

Progress Update – First stage of SCOFR program on track to March 2017 completion

• Mexico facility on track to 4Q completion

• Three plant consolidations announced (one completed)

• Reducing internal foundry capacity, selectively increasing outsourcing

• Launched planning for next stage of SCOFR

10

• FY17 program capex $14-16 million

• FY17 total nonrecurring expenses

estimated about flat with FY16, but

partially offset by initial savings

• FY17 est. restructuring expenses

$13-15 million, comparable to FY16 est.

• FY17 net impact to Adjusted EBITDA

est. $2-4 million of net expense (versus

est. $13 million expense in FY16)

• Launch initial Mid-Tier PT products

• Launch next stage in SCOFR

• FY16-17 initiatives expected to

benefit Process & Motion Control

margins by ~200 bps

• FY16-17 initiatives expected to

benefit Water Management

margins by ~50 bps

• Lower fixed costs = more flexible

cost structure and reduced

maintenance capex levels

• Expanding Mid-Tier PT offering

• Additional supply chain repositioning

• Additional structural cost reductions

• Improved variable cost structure

• Improved free cash flow

ImplementationFY17 New Current StateFY18 New Future StateFY19

Structural cost reduction initiatives gather momentum

Strategic Execution On Track

Grow Specification Share

Zurn tracking to >80% specification share in US nonresidential building market (~2x FY10 level)

VAG project backlog increasing, securing expanded NA specification of VAG-designed products

Aerospace content share higher on newer commercial aircraft platforms

PMC commercial efficiency initiatives gaining traction, key strategic first-fit wins

Sustain Strong Free Cash Flow to Fund Growth

Executing significant reduction in global manufacturing footprint

Structural cost reduction, fixed cost reduction

Planning under way for next stage in footprint & supply chain transformation

Focus on accelerating working capital turnover

Superior Talent Acquisition & Development

Public ownership enhances recruiting appeal

Deeper senior leadership team now in place for 12 months

Continuing to add talent among senior leaders’ direct reports

Recent key leadership additions in Product Management (WM), Sales & Marketing (PMC)

Strategic Acquisitions & Divestitures

Recent quiet period not reflective of ongoing funnel development

Funnels continue to strengthen, good proprietary content

Focus remains high-quality, bolt-on opportunities that are additive to growth, profitability

Rapid integration through Rexnord Business System

11

Capital Allocation Focus

12

Attractive alternatives for capital deployment

Strategic Acquisitions

• RBS-directed = process-based, integrated into strategic planning process

• Demonstrated ability to source exclusively-negotiated transactions

• Investments in proprietary funnel development and participation in structured processes

• Ability to leverage leading commercial presence & scale in both platforms

• Target ROIC > WACC within 12-36 months

Share Repurchases

• Offsets prospective dilution from employee compensation programs

• $200-million authorization with $160 million unused

Debt Reduction

• Covenant-light term debt with unrestricted prepayment terms, matures 2020

Process & Motion Control Profile

Highlights

• Broad product portfolio for heavy-duty applications in process industries, aerospace

• Major product categories include flat top conveyor systems & components, gears & gear

drives, couplings, bearings & seals, engineered chain

• Reliability critical to avoid costly user downtime + small share of user system cost =

80%+ like-for-like replacement

• Serves $13+B fragmented global market with significant bolt-on acquisition potential

• Competitive advantages in product scope, applications expertise, brand positioning

13

General Industrial &

Process31%

Food & Beverage

15%

Aerospace14%

Bulk Material

Handling12%

Const

Materials & Eqpt

8%

Energy8%

Agri/Farm

5%Paper &

Forest 4%

Transport

3%

FY15 Sales by End Market

US & Canada

63%

Europe16%

Latin

America

9%

ROW12%

FY15 Sales by Geography

OEM & End User

52%

Aftermarket

48%

FY15 Sales by Application

Aftermarket48%

Industry Applications Representative Products

Food &

Beverage

Beverage Filling

Pasteurizers

Food Handling

Case Handling

Container Making

Commercial

Aerospace

Flight Control Systems

Aircraft Doors

Airframe Structures

Engine/APU/Gearbox

Landing Gear

Bulk Material

Handling

Conveying Equipment

Processing Machinery

Hard Rock & Coal Mining

Potash Mining

Fertilizer Production

Energy

Electrical Power Generation

Oil & Gas Compression

Process Equipment

Wind Turbines

Construction

Materials

Cement Production

Aggregates Processing

Asphalt Production & Paving

Lumber/Wallboard Prod.

PMC Major End Markets

14

Process & Motion Control Strategy

Strategic Checklist

Expand vertical organization structure to align operational execution with established

customer-defined front end

Focus resources on winning first-fit applications to expand global installed base in

targeted verticals

Invest in new product development, VAVE to expand addressable market

Invest in complementary acquisitions to expand opportunities in faster-growing markets,

expand global presence

Rationalize supply chain, fixed costs to expand margins, accelerate growth potential

15

FY15 Acquisition: Euroflex FY15 Acquisition: Tollok

Locking devices used

to secure rotating

shafts, manage torque

transmission, and

counteract shaft

bending and vibration

Disc couplings used for

gas and steam turbine-

driven, gas compression,

and test bench

applications with higher

than average speed &

misalignment needs

Important progress in FY15

Water Management Profile

Highlights

• Broadest offering for water safety, conservation, and flow control in specification-driven

applications in building construction, water & wastewater treatment & supply

• Major product categories include specification-grade drainage, flush valves & sensor

faucets, engineered valves and gates for water & wastewater control

• Small share of user project cost but critical to system performance and reliability

• Serves $5+B fragmented global market with attractive bolt-on acquisition potential

• Competitive advantages in product scope, product innovation, commercial network

16

Residential12%

FY15 Sales by End Market

Water & Wastewater

Infrastructure37%

Nonresidential:Commercial & Industrial

29%

Nonresidential:Institutional

22%

US & Canada

71%

Europe13%Latin

America

2%

ROW14%

FY15 Sales by Geography

New Construct

ion59%

Replacement / Retrofit

41%

FY15 Sales by Application

Replacement / Retrof it

41%

New Construction

59%

Market Applications Representative Products

Commercial

Buildings

Water Supply

Drainage Control

Restrooms

Kitchens

Fire Control

Institutional

Buildings

Water Supply

Drainage Control

Restrooms

Kitchens

Fire Control

Municipal Water

& Wastewater

Water Distribution

Water Treatment

Pumping Station

Flood Protection

Desalination

Dam &

Hydropower

Hydro Power Plant

Pump Storage Station

Extraction System

Bottom Outlet

Inlet Control

Industrial &

Power

Water Supply

Cooling Water Supply

District Heating & Cooling

Storage Tanks

Fire Control

Water Management Major End Markets

17

Water Management Strategy

Strategic Checklist

Leverage scale advantages to deliver superior customer economics & satisfaction

Focus resources on driving higher specification share with owners, architects, engineers

Invest in new product development, VAVE to expand addressable market

Leverage brand and go-to-market advantages to penetrate adjacencies

Invest in complementary acquisitions to expand content per square foot, channel access

Rationalize supply chain, fixed costs to expand margins, accelerate growth potential

18

FY15 Acquisition: Green Turtle

Point-source wastewater

pretreatment and water

reuse solutions for

commercial, institutional,

and industrial applications.

Favorable growth outlook with margin expansion

Executive Summary

19

Aligned to Create Value for Shareholders

Near-Term Perspective

• Realistically cautious view of global end market growth prospects

• Capitalizing on core growth opportunities in Water Management, Food & Beverage, Aerospace

• Executing $30-million structural cost savings initiative with benefits to emerge in FY17

• Increasing commercial efficiency & shifting end market exposures toward growth

Longer-Term Perspective

• Expanding capabilities to drive core growth

• Robust free cash flow

• Sustainable 30% incremental EBITDA margins

• Investments in M&A funnel development

• Rexnord Business System enables enhanced financial returns & shareholder value creation

20

Appendix

21

Non-GAAP Reconciliations

Note: During the fourth quarter of fiscal 2011, the Company voluntarily changed its method of accounting for actuarial gains and losses related to its pension and other postretirement benefit plans. Please refer to footnote 2 of the audited financial statements of the March 31, 2011 Form 10-K filed by the Company’s subsidiaries, RBS Global, Inc. and Rexnord LLC for further information.

(1) The loss on divestiture is the result of the Company's sale of a non-core subsidiary to a third party. (2) Represents restructuring costs comprised of work force reduction, lease termination, and other facility rationalization costs.(3) Last-in first-out (LIFO) inventory adjustments are excluded in calculating Adjusted EBITDA as permitted by Rexnord’s credit agreement.(4) Other (income) expense, net consists of management fees, loss on foreign currency transactions, loss on sale of property, plant and equipment, income in unconsolidated affiliates and other miscellaneous

expenses.

FYE March 31, FQE Sept 30,

US$ in millions 2011 2012 2013 2014 2015 2015

Net (loss) income from continuing operations $(54.2) $30.6 $47.3 $25.0 $91.8 $22.6

Interest expense, net 180.8 176.2 153.3 109.1 87.9 21.9

(Benefit) provision for income taxes (10.6) 6.5 15.4 (10.0) 16.8 10.0

Depreciation and amortization 104.6 112.7 110.9 106.9 112.2 28.4

EBITDA $220.6 $326.0 $326.9 $231.0 $308.7 $82.9

Adjustments to EBITDA:

Actuarial loss on pension and post retirement

benefit obligations— $9.1 $5.5 $2.7 $59.4 $—

Loss on divestiture (1) — 6.4 — — — —

Loss on extinguishment of debt 100.8 10.7 24.0 133.2 — —

Restructuring and other similar charges(2) — 6.8 8.6 8.4 12.9 2.7

Stock-based compensation expense 5.6 3.7 7.1 7.0 6.4 1.9

Impact of inventory fair value adjustment — 4.2 — 1.7 3.2 —

LIFO expense (income) (3) 4.7 2.2 5.0 5.6 (1.7) 0.8

Zurn PEX loss contingency — — 10.1 — — —

Other (income) expense, net(4) (1.1) 7.1 2.9 15.1 7.2 1.0

Subtotal of adjustments to EBITDA 110.0 50.2 63.2 173.7 87.4 6.4

Adjusted EBITDA $330.6 $376.2 $390.1 $404.7 $396.1 $89.3

Pro forma adjustment for acquisitions 11.3

Pro Forma Adjusted EBITDA $407.4

22

Non-GAAP Reconciliations (Continued)

Q2 FY 2016 Q2 FY 2015

US$ in millions

(except per share amounts)

Operating

Income Net Income EPS

Operating

Income Net Income EPS

As reported, from continuing operations $55.5 $22.6 $0.22 $78.7 $37.8 $0.36

Amortization — 14.2 0.14 — 13.7 0.13

Stock Option Expense 1.9 — — 1.1 — —

Restructuring Expense 2.7 2.7 0.03 1.4 1.4 0.01

LIFO Expense (Income) 0.8 — — (0.2) — —

Inventory Fair Value Adjustment — — — 0.7 0.7 0.01

Supply Chain Optimization & Footprint

Repositioning Program (1)0.4 0.4 —

— — —

All Other Non-Operating — 1.0 0.01 — 2.3 0.02

Tax Impacts on Adjustments — (6.3) (0.06) — (6.3) (0.06)

As Adjusted $61.3 $34.6 $0.34 $81.7 $49.6 $0.47

(1) Accelerated depreciation and other non-cash expenses associated with supply chain optimization and footprint repositioning program.

December 2015 Credit Suisse Industrials Conference · US Municipal Bond Issues (Sep YTD): +33% US State & Local Tax Receipts (Jun YTD): +6% source: Dodge Data & Analytics, AIA, US

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