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REXNORD INVESTOR DAY 2018SOLVING SMARTER

AUGUST 2, 2018

SAFE HARBOR STATEMENTS

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This presentation contains “forward-looking” statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the

assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. Accordingly, we

caution you not to place undue reliance on these statements. All statements other than statements of historical fact could be deemed forward-looking,

including, but not limited to, any projections of financial information; any statements about historical results that may suggest trends for our business; any

statements of the plans, strategies and objectives of management for future operations; any statements of expectation or belief regarding future events,

technology developments or enforceability of our intellectual property rights; and any statements of assumptions 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 future performance.

Actual results could differ materially from our current expectations as a result of many factors, including but not limited to: the impact of our

indebtedness; our competitive environment; general economic and business conditions, market factors and our exposure to customers in cyclical

industries; performance, and potential failure, of our information and data security systems, including potential cyber security threats and breaches; the

costs related to strategic acquisitions or divestitures or the integration of recent and future acquisitions into our business; the costs and uncertainties

related to our anticipated divestiture of the VAG business within our Water Management platform; the effect of local, national and international economic,

credit and capital market conditions on the economy in general, and on our customers and the industries in which we operate in particular; risks

associated with our international operations; the loss of any significant customer; dependence on independent distributors; increases in cost of our raw

materials, including as a result of tariffs, trade wars and other trade protection matters, and our possible inability to increase product prices to offset such

increases; impact of weather on the demand for our products; changes in technology and manufacturing techniques; the costs of environmental

compliance and/or the imposition of liabilities under environmental, health and safety laws and regulations; legislative, regulatory and legal developments

involving taxes; the costs associated with asbestos claims and other potential product liability; our access to available and reasonable financing on a

timely basis; changes in governmental laws and regulations, or the interpretation or enforcement thereof, including for environmental matters; reliance on

intellectual property; work stoppages by unionized employees; loss of key personnel; changes in pension funding requirements; and potential impairment

of goodwill and intangible assets. These and other risks and uncertainties associated with our business are described in our Annual Report on Form 10-

K for the year ended March 31, 2018, and in our periodic filings with the Securities and Exchange Commission. We assume no obligation and do not

intend to update 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-Ks filed with the

Securities and Exchange Commission on May 14, 2018 and July 30, 2018. 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 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.

AGENDA

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8:30-8:35 Welcome & Event Logistics Rob McCarthy, VP Investor Relations

8:35-9:15 Strategic Overview & Objectives Todd Adams, President & Chief Executive Officer

9:15-9:35 Process & Motion Control Kevin Zaba, President PMC

9:35-9:55 Water Management Craig Wehr, President Zurn

9:55-10:10 Financial Profile & Capital Allocation Mark Peterson, SVP & Chief Financial Officer

10:15-10:30 BREAK

10:30-12:10 BREAKOUT SESSIONS (3 breakout sessions / groups rotate every 30 minutes)

Mike Miclot, PMC VP Marketing & Customer ExperienceRick Morse, PMC VP Innovation & Digital Solutions

Kevin ZabaJamie Quilter, PMC Sector VP - Consumer Industries

Craig WehrWater Management Tony Wilcox, Zurn VP Engineering & Product Management

Sudhanshu Chhabra, VP Rexnord Business System

12:10-12:25 BREAK

12:25-1:00 Lunch & Management Q&A Adams / Peterson / Wehr / Zaba

Process & Motion Control

LOCATIONPRESENTERSESSIONTIME

DiRXNTMMike Troutman, Chief Technology Officer

Holmes I & II

(all on 4th floor)

Kennedy I

Kennedy II

Holmes I & II

Adams

BREAKOUT SESSION LOGISTICS

Group Letter is on the back of your nametag

Please stay with your assigned group

as you move from room to room

Group A: Breakout 1, Breakout 2, Breakout 3

Group B: Breakout 2, Breakout 3, Breakout 1

Group C: Breakout 3, Breakout 1, Breakout 2

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WelcomeREXNORD INVESTOR DAY 2018

REXNORD PROFILE

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$4.6Enterprise

Value ($B)

20.9%Adjusted

EBITDA Margin

$1.85Revenue

($B)

104% Free Cash Flow

Conversion

Concentrated Multi-Platform Industrial

Sustainable Competitive Advantages

Rexnord Business System

Solving Smarter

TWO SCALABLE PLATFORMS

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Process & Motion Control

Be the leading global provider of high-

value, mission-critical solutions that help

customers safely, reliably and productively

keep their goods & assets moving

FY18 Revenue: $1.2B

Adj EBITDA Margin: 22%

Water Management

Provide and enhance water quality,

safety, flow control, and conservation in

nonresidential buildings and premises

FY18 Revenue: $0.6B

Adj EBITDA Margin: 25%

Note: FYE March 31. Platform margins exclude corporate expenses. Adjusted EBITDA is a non-GAAP measure and is defined in our SEC filings.

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Market leaders with sustainable competitive advantages

WITH SHARED CHARACTERISTICS

• Highly-engineered components

• Specification for the application by end user

• Small contribution to system cost

• Large contribution to system reliability

• Distribution channel complexity

• Unmatched product scope

REXNORD VALUE CREATION MODEL

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REXNORD BUSINESS SYSTEM

Four guiding principles:

1. Voice of the Customer

2. Associate Engagement

3. Process-Based =

Scalable Execution

4. Culture of Continuous

Improvement

Peo

ple • Health & Safety

• Total Associate Engagement

• Talent Management

Pla

n • Strategic Planning

• Strategy Deployment

• Budget Process

• Product Lifecycle Management

Pro

cess • Continuous

Improvement

• Visual Daily Management

• Problem Solving

• Advanced Manufacturing

• Demand Management

• Acquisitions

• Innovation

• Core Market Growth

Perf

orm

ance • Customer

Experience

• Internal & External Measurement

Integrated strategic planning & operational management system

Structured approach to 17 Core Business Processes

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11

Win Every Day

CREATING SUSTAINABLE COMPETITIVE ADVANTAGE

Amplifies Operational Alignment with Strategic Objectives

• Quantifies specific strategic objectives and assigns Key Performance Indicators

• Clearly defines responsibilities and fosters associate ownership

Expands Core Capabilities

• Common language enables sharing of best practices

• Drives resource allocation

Accelerates Continuous Improvement

• Supported by RBS specialists within each business unit

• Immediate focus of acquisition integration, new talent on-boarding

AMPLIFY

ACCELERATE

EXPAND

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Compounding even small improvements is powerful / 1.001240 = 1.27

#CI KNOWLEDGE TRANSFER SYSTEM

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TOTAL ASSOCIATE ENGAGEMENT

and what I like the most is the team work

TALENT MANAGEMENT

Professional Development

Rexnord Business System (RBS) Programs

RBS Center of Excellence Events

Associate On-Line Self Development

Rexnord Drive

Manager Development Programs I & II

Global Leadership Development Program

Early Career Development

Intern Program

Technical Excellence Program

Supply Chain Rotational Program

Finance & Accounting Rotational Program

Sales Engineering & Leadership (SEAL)

Commercial Management Program

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16

TRIR is approaching World Class levels

Integrated Safety Management Systems

Standardized Safety Programs

Formal Internal Audit Process

Safety Culture Assessment

27 locations have worked one year or more with no recordable injury

SAFETY & HEALTH

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Smaller environmental footprint

REXNORD STEWARDSHIP

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STRATEGIC PLANNING FY16-FY18

Daily Management

Performance Ownership

Strategy Deployment

Annual Budget

Product Life Cycle

Management

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RBS STRATEGIC ALIGNMENT

Focus + Clarity + Alignment + Accountability = Outcome

OUTCOME3-Year

Strategic

Plan

OpEx

Planning

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AMPLIFYING COMPETITIVE ADVANTAGE

Trusted BrandsCustomer Preference

Scale & ScopeInnovation & Simplification

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High barriers to entry, highly differentiated

PMC SCALE & SCOPE ADVANTAGESREXNORD

Product Category A B C D E F G H I J K L M N O P Q R S T U V W

Process Automation Gear Drives XXX XX XXX XXX XX XX XX X XX X X X X

Discrete Automation Gear Drives XX XXX XXX XX XX XX XX XX X X X

Discrete Automation Gearmotors X XXX XX XX X X X XX X X

General Purpose Gear Drives XX XX X XX X X XX XX X X X X

Precision Gearing & Gearboxes XX XX X XX X X X

Backstops XX XXX X

Industrial Brakes & Clutches XX X XXX X X X X X

Steel Disc Couplings XXX X XX X X X XXX X X XX

Composite Disc Couplings XXX X X XXX X X X

Torsionally Soft Couplings XXX X X X X X XXX

Fluid Couplings X X X X X X XXX

Gear Couplings XXX X X X XXX X X XX X X XXX

Grid Couplings XXX X XX X X XX

Elastomeric Couplings XXX XX X XXX XX X XXX X X X X

Precision Couplings & Shafts XXX X XXX XX X X X X X

Shaft Locking Devices XX XX X X X XXX X X

Torque Limiters XX XXX X XX X X

HD Mounted Bearings XXX XXX XX XXX XX

GP Mounted Bearings XX XXX X XX XX XX

Cylindrical Roller Bearings XXX XXX XXX

Steel Modular Conveying Chain XXX XX XX

Plastic Modular Conveying Chain XXX XXX XXX XX

Hybrid Conveying Chain XXX XXX

Sprockets & Conveyor Components XXX XXX X XX

Roller Upgrade System XXX

Woven Metal Mesh Conveying Chain XXX XXX XX

Spiral Cage Conveying Chain XXX XX

Roller Drive Chain XX X X XX X XXX X

HD Industrial Conveying Chain XXX X XXX XX X

Among Market Leaders XXX

Significant Presence XX

Limited and/or Regional Presence X

source: Company websites, Rexnord estimates

COMPETITORS

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High barriers to entry, highly differentiated

ZURN SCALE & SCOPE ADVANTAGESZURN

Product Category A B C D E F G H I J K L M N O P Q R S T U V W

Specification Roof Drainage XXX XX XXX XX

Specification Floor Drainage XXX XX XXX XX

Stainless Drainage XX XXX XX XX

Floor Sinks XXX XX XXX XX

Chemical Drainage XX XX

Carrier Systems XXX XX XXX XX

Hydrants XXX X XX X X

Light Commercial Drainage XX X X XXX X XX

Backflow Preventers XXX XXX XX

Automatic Control Valves XX XXX X X XXX

Pressure Reducing Valves XXX XXX X X

Thermostatic Mixing Valves XX XXX XX XX XXX XX

Ball Valves X XX XX

Check Valves X XX X XX X

Linear Trench Drainage XXX XX XX X X XXX

Catch Basins XXX XX XX X X XXX

Frame & Grate Systems XX XXX XXX

Steel Grease and Oil Sperators XXX XX XXX XX

Synthetic Grease and Oil Seperators XXX XX

PEX Crimp XXX X XX XXX XX

PEX Expansion X X XXX

Sensor Flush Valves XX XXX XX XX X

Manual Flush Valves XXX XXX XX X

Sensor Faucets XX X X X XXX XX XX XX XX

Manual Commercial Faucets XX XX XX XX XXX

Specialty Institutional Valves XXX XX X X

Institutional Shower Systems XX XXX X X XXX X X XX

Ceramic Fixtures XX XX XXX X XXX

Solid Surface Fixtures X XX XXX XX

Hand Dryers XXX XXX XXX

Among Market Leaders XXX

Significant Presence XX

Limited and/or Regional Presence X

source: Company websites, Rexnord estimates

COMPETITORS

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PORTFOLIO TRANSFORMATION

✓ Rebalanced portfolio to increase exposure to consumer-driven end markets

✓ Reduced exposure to large-project dominated end markets with minimal aftermarket potential

✓ Strengthened core by adding adjacent product lines, accelerating penetration of target end markets

✓ Cumulative ROIC for Tollok, Euroflex, Green Turtle, Cambridge is in low teens to date

Process & Motion Control Acquisitions Water Management Acquisitions Divestitures & Product Line Exits

Centa Power Transmission (FY18) World Dryer (FY18) VAG (FY19)

Expands into adjacent couplings market Expands content in commercial washrooms Valves for water and wastewater infrastructure

Leader in engine-powered applications Completes portfolio of handwashing products Government-funded project focus

Cambridge (FY17) Green Turtle (FY15) Rodney Hunt Fontaine (FY17)

Expands position in food industry Fiberglass displacing sheet metal/concrete Increasingly commoditized flow-control gates

Innovation, performance leader Specifiable product for site works Limited replacement and/or service potential

Euroflex (FY15) Mill Products (FY15)

Share gains in weak EPG market Jumbo gears & pinions for crushing/rolling mills

Low-cost manufacturing, engineering COE Limited replacement and/or service potential

Tollok (FY15)

Expands position in windpower market

Efficient manufacturing leveraged with SCOFR

RexlonAero

Bearing

The Pint ULF

Roller Upgrade System

AR Series Backflow

XTSR Coupling

HETC System

Dry-PT Chain

DiRXN

Connected Gear Drive

EZ1 Drain

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Accelerating innovation

REXNORD INNOVATION

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Solving smarter by digitizing connections across your life cycle for optimum productivity

DiRXN = “DIRECTION” = DIGITAL REXNORD

• Enterprise-wide initiative to enable

improved customer productivity via

digitally-connected tools, products and

services

• Differentiate by digitally connecting

traditional mechanical solutions to user

control systems, engineering & asset

management software and IIoT

• Create first-mover advantage while

strengthening competitive advantages

Increase Value Chain Productivity

Reduce Asset

Intensity

Capture Incremental

Growth

Reduce Cyclicality

Reinforce Competitive Advantages

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DiRXN STRATEGIC IMPACT

1. Trusted Brands

Reinforces differentiation

2. Customer Preference

Delivers real value

3. Scale & Scope

Leverages broad system content

4. Innovation

Reinforcing industry leadership

Additive to ROIC

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Targeting core growth and structural profitability

• Value Stream Mapping

• Product Quantity Process Routing

• Standard Work

• 5S+

• Pull / Kanban

• SMED

• Total Productive Maintenance

• Transactional Process Improvement

• VRK / 6σ

• Visual Daily Management

• Kaizen

• Value Add / Value Engineering

• Root Cause Counter Measure

PLUS

• Product Line Simplification

• Strategic Pricing

80 20

"A" SKUs "B" SKUs

20% x 20% = 4%

of total revenue

80% x 20% = 16%

of total revenue

80% x 80% = 64% 80% x 20% = 16%

of total revenue of total revenue

"A"

Cu

sto

me

rs

80

20

"B"

Cu

sto

me

rs

EXPANDING THE RBS TOOLBOX

Additive to ROIC

✓ Consolidated product families

✓ Focused commercial actions

RBS CASE STUDY World Dryer

Evolving capabilities to drive profitable growth through SSD

Simplify, Standardize, DiRXNize

VERDEdri

• Acquired October 2017

• Annual sales ~$20 million

• Globally respected iconic manufacturer

of Eco-friendly hand dryers

• Augments portfolio & provides greater

value to commercial building owners

VMAX Model A

✓ On track to exceed 3-year business case

• 9.5% compound annual core growth

• 330 bps EBITDA expansion

• 1x turn inventory improvement

✓ Improved customer experience

• DiRXN digital tools

– Specification selection & ROI tools

– Improved product selection process

✓ Increased Architect engagement

• Spec share +5% in 6 months

✓ Structural cost reduction

• Footprint reduction of 46%

• Structural cost savings of $1.5 million

27 Product Families11 High Speed16 Traditional

6 Product Families5 High Speed1 Traditional

Simplification Results

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COMPOUNDING STRATEGIC EXECUTION

FY16

COMMERCIAL

salesforce.com Conversion

First Fit Focus

Updated Web-Based Tools

OPERATIONAL

Supply Chain Optimization & Footprint Repositioning 1.0

Platform ERP Operational

INNOVATION

NextGen ACV

EZCarry & Zurn HETC

FY17

COMMERCIAL

Commercial Excellence Process Optimization

Salesforce Reorganization

OPERATIONAL

India Engineering COE

New LCR Campus

INNOVATION

Integrated Handwashing Development

IIoT Smart Bearing

FY18

COMMERCIAL

e-Commerce Portals

Zurn Platinum Reps

OPERATIONAL

SCOFR 1.0 Completion / 2.0 Launch

Cambridge European Localization

INNOVATION

DiRXN Launch

IIoT Connected Products

EZ1 Drain System

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Targeting core growth and structural profitability

COMMERCIAL EXCELLENCE

✓ Strategic Account Structure

✓ inSpecpowered by Zurn

✓ Strategic Pricing

OPERATIONALEXCELLENCE

✓ SCOFR 2.0

✓ Product Line Simplification

✓ Centa Process Improvement

INNOVATION

✓ PMC Connected Product Line Extension

✓ Zurn Connected Valves

✓ IIoT Retrofit Solutions

FISCAL 2019 STRATEGIC PRIORITIES

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Building momentum in FY2019

GOOD PROGRESS IN FISCAL YEAR 2018

(1) Non-GAAP measure defined, reconciled, and discussed in the earnings release included in the Forms 8-K filed with the Securities and Exchange Commission on May 14, 2018

and July 30, 2018.

(2) Outlook for fiscal year 2019 (ends March 31, 2019) issued in the earnings release included in the Form 8-K filed with the Securities and Exchange Commission on July 30, 2018.

Note: MSD = Mid-Single-Digit

Sep-16 Mar-18 FY 2019

LTM LTM Outlook (2)

Core Growth (1)

(3%) 5% +MSD%

Adjusted EBITDA (1)

$ 333 $ 389 $ 425-440

Free Cash Flow (1)

$ 150 $ 188 > Net Income

Net Debt Leverage (1)

4.3x 2.7x

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Significantly enhanced flexibility

STRUCTURAL CHANGES SINCE 2010

✓ Fundamentally lower distribution channel inventories

✓ Reduced mining sector exposure

✓ Increased consumer sector exposure

✓ SCOFR fixed cost reductions

✓ Reduced plant footprint, reduced maintenance capex

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SOLVING SMARTER

Digital strategy Amplifies, Expands, Accelerates differentiation

• Competitive Advantages

• Customer Satisfaction

• Adjacent Products & Verticals

• Strategic Acquisitions

• Innovation

• Structural Cost Reduction

AMPLIFY

ACCELERATE

EXPAND

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KEVIN ZABAGroup Executive and President –Process & Motion Control

The best provider of industrial digi-mechanical productivity and

reliability solutions

PMC SALES COMPOSITION

Rebalanced portfolio with global footprint

• Broadly diversified across process,

consumer/discrete, aerospace &

energy end markets

• Consumer / discrete application

solutions comprise ~50% of pro

forma FY18 revenue

• Global installed base of mission

critical, premium products generates

long-tail MRO demand

• Regional manufacturing and / or

assembly capacity to meet customer

requirements in local markets

• OEM Customers largely served

directly by Rexnord globally

• Distribution partners play key role in

customer service and support for

MRO business

• First-fit specification and MRO

network drive high like-for-like

replacement decision

source: Company reports, Rexnord estimates. Chart data are FY18 pro forma for Centa (acquired Feb-18).

US & Canada

59%

LASA7%Europe

20%

Asia-Pacific & ROW

14%

OEM & End User

Direct55%

Industrial Distribution

45%

Food & Beverage

17%

Aerospace13%

Power Gen 10%

Auto-Marine-

Rail7%

Paper & Forest

Products7%

Mining & Natural

Resources6%

Const Materials

& Eqpt6%

General Industrial & Process

34%

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PMC “DIGI-MECHANICAL” PORTFOLIO

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Core

• Mission Critical, Premium Products

• Specified with High Like-for-Like Aftermarket

• World-Class Quality and Service

• RBS with Continuous Improvement

Capabilities

• Process, Energy AND Consumer End-Markets

• Mechanical AND Digital Solutions

• MRO AND First-Fit Focus

• Leading Brands AND Modern Customer Experience

Initiatives

• Commercial Excellence

• Digital Innovation Pipeline

• Portfolio Diversification

• Supply Chain Optimization & Footprint Repositioning

PMC STRATEGIC PRIORITIES

Commercial & Operational Excellence + Innovation & Diversification

AMPLIFY

ACCELERATE

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EXPAND

Accomplished To Date

• 3,000+ customers reviewed

• Global Strategic Account model launched

• 100% of N America & Europe resources industry-aligned

• $75M+ First Fit sales captured

Next 1-2 Years

• LASA and APAC Expansion

• DiRXN amplification

• Omni channel go-to-market

• $100M+ First Fit capture

PROGRESS REPORT Commercial Excellence

New commercial model amplifying First Fit growth success

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Accomplished To Date

• 55% of portfolio tagged

• 400,000+ units shipped

• 10,000 new customers registered

• $20M+ sales generated

Next 1-2 Years

• 95% of portfolio tagged

• 10+ product families IIoT and network connected

• Digital field services expanded

• $100M+ sales generated

Asset Productivity Customer Value Operating Productivity Customer Value+

PROGRESS REPORT DiRXNTM

Digital Advantage

Bringing the DiRXN advantage to every part of our portfolio

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PROGRESS REPORT Cambridge Acquisition

Doubled bakery application solution set & market opportunity

Accomplished To Date

• Integration completed, inclCommercial Excellence model

• Europe mfg & commercial resources expanded

• New food belt (KleanTop) co-developed and launched

• $100M+ consumer sector sales contribution

Next 1-2 Years

• Food portfolio expansion

• SCOFR implementation

• DiRXN incorporation with NPD

• MSD / HSD Growth Target

Bakery Application Coverage

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PROGRESS REPORT Centa Acquisition

Rexnord + Centa = leading global couplings manufacturer

Accomplished To Date

• Commercial Excellence launched in US & Europe

• Operations kaizen complete & process changes implemented

• NPD roadmaps simplified

• $100M+ marine, energy & industrial equipt sales added

Next 1-2 Years

• Complete global integration

• SCOFR implementation

• DiRXN incorporation with NPD

• MSD / HSD Growth Target

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SCOFR actions driving margin expansion & competitiveness

Accomplished To Date

• 20%+ manufacturing footprint reduction

• 20 plants migrated to SAP

• Monterrey/McAllen output & margin surpassing Indianapolis

• $20M+ annual cost savings

Next 1-2 Years

• SCOFR 2.0 and SCOFR 3.0

• Aerospace COE completion

• Digital Plant technology adoption

• $30M+ annual cost savings

PROGRESS REPORT SCOFR 1.0 / 2.0Monterrey, Mexico Bearings Plant

Digitally Connected Factories Downers Grove, IL Aerospace COE

Technology Upgrades

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CUSTOMER DiRXNTM

TESTIMONIALS

“We previously experienced extended downtime due to missing coupling components. Having QR codes now allows us to identify needed components immediately and get running faster.”

– Maintenance Leader, Fortune 500 Manufacturer

“The QR codes are a key differentiator. During a down event, customers are one scan away from product identification information.”

– Vice President, Build Center Partner

“We’ve had an IIoT Gearbox running for a year now, monitoring oil, vibration and temperature - we use this data to understand asset health and predict operating capability. We added two more just recently at a second site on critical conveyors.”

– Corp Reliability Excellence Process Leader, Fortune 500 Agri-Business

“I love the ability to dump a spreadsheet into the quick order and get price and delivery. Other manufacturer sites require me to input the spreadsheet content - it’s a total waste of time.”

- Purchaser, Distributor Partner

48

PMC DiRXNTM

BREAKOUT SESSION

49

Experience how our customers capture value with DiRXNTM

• Reduced Maintenance Costs

• Reduced Consumables Costs

• Increased Equipment Uptime

• Increased Throughput

• Improved Equipment Life Span

• Increased Equipment Utilization

• Improved Inventory Optimization

• Increased Safety

CustomerValue

. . . in summary

• Substantial repositioning over last 3 years

• Breakthrough initiatives diversifying business and enabling growth

• Delivering customer value and differentiation through DiRXN™

• Supply Chain Optimization & Footprint Repositioning plans on track & expanding margins

• Positioned for sustained sales and margin growth

The best provider of industrial digi-mechanical productivity and reliability solutions

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51

CRAIG WEHRGroup Executive and President – Zurn

The leader in engineered water solutions for the building

construction industry

Nonresidential Construction: Institutional

34%

Nonresidential Construction: Commercial &

Industrial42%

Waterworks 7%

Residential Construction

17%

US & Canada

95%

ROW 5%

WATER MANAGEMENTSales Composition

53

• 83% of sales in nonresidential markets

• Multiple channels to market

• Water efficiency and safety drive retrofit

Replacement & Retrofit

35%New

Construction 65%

Product Segments

Drains and Rough Wall• Cast Iron Floor Drains

• Stainless Steel Drainage

• Carriers

Water Control• Automatic Control Valves

• Pressure Reducing Valves

Water Safety• Backflow Prevention

• Thermostatic Mixing

Valves

• Fire Valves

Water Distribution• Expansion and Insert/

Crimp Fitting System

using one pipe

Site Works• Linear Trench Drain

Systems

• Grease, Oil,

and Sediment Separation

Finish Plumbing• Solid Surface Sinks

• Sensor and Manual

Faucets & Flush Valves

• Vitreous Lavatories,

Urinals & Water Closets

• Hand Dryers

Source: Company reports, Rexnord estimates. Chart data are FY18 pro forma for World Dryer (acquired Oct-17) and exclude VAG.

ZURN COMPETITIVE ADVANTAGES

54

Broad Product Portfolio• Leading building and site drainage systems

• High performance water distribution, safety, and control offering

• Extensive front of the wall finished plumbing systems

Highly Specified

for New Construction

and Renovation

• Strong brand preference and specification share

• Differentiated paired performance systems

• Innovative digital specification tools

Save Time and Money

for Contractors

• Single source supply

• Product solutions can save more than 25% in labor costs

• Dedicated lean construction contractor team

Low Lifecycle Costs

for Building Owners

• High quality products with low lifecycle costs

• Repair parts cost savings of more than 30%

• Connected products to mitigate risk of underperforming plumbing systems

High Service Levels

and Customer Support

• Regional service center and local rep inventories

• Shortened lead times and same day pick up

• Highly trained customer care and applications engineering support

55

PROJECT LIFECYCLE

Zurn influence throughout the value chain

ZURN DEMAND CREATION

56

Differentiated value proposition

WHY ZURN WINS

57

LONG-TERM GROWTH IN KEY VERTICALS

58

ZURN GROWTH INITIATIVES

59

Amplify

AMPLIFY and Grow in Core Markets

• New product innovation

• Increase specifications and contractor conversion

• Lean operations and supply chain to improve service levels and profitability

Expand

EXPAND Fire and Site works Adjacency: $40M+ sales impact goal

• Use leading products to enter adjacencies

• Increase product bundles

• Drive specifications and contractor conversion

Accelerate

ACCELERATE Connected Products and Retrofit & Replacement: $50M+ sales impact goal

• New connected product innovation

• Convert building owners’ existing installed base

• Increase owner specifications and contractor conversion

Create new capabilities to win in expanding new construction market and beat the market

AMPLIFY

ACCELERATE

EXPAND

AMPLIFY Lean Construction

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Las Vegas Raiders Stadium Golden State Warriors Arena

Milwaukee Bucks Arena LA Rams Stadium

Texas Rangers Stadium

Pre-fabrication and labor savings delivering market share

Site Drainage

Site Works

• Linear Drainage

• Interceptors

Zurn One Systems

• Paired Performance with

wall carriers, water closets

and flush valves

Water Safety

• Backflow valves

Water Control

• Automatic Control Valves

CUSTOMER TESTIMONIALS

61

Lean Construction“I think the Zurn EZ1 Self Leveling

Drain is a revolutionary product. It’s cut

down tremendous time – probably 75

percent in a total drain installation. It’s

just such a cleaner operation. EZ1 will

change the plumbing industry in the

future for the better.”

– Thomas Garrison,

Polk Mechanical

“I can definitely see using

inSpec, essentially on larger

projects. Much easier to

specify and build the

schedule.”

– Alexander, Engineer,

Atlanta

“Zurn’s total product offering is

impressive and hard to ignore.

Makes sense to partner with

company that can provide so much

of their plumbing fixture schedule.”

– Design Manager, McDonald’s

Content Per Square Ft Expansion PEX“We switched over almost

exclusively to the Zurn

PEX product a couple

months ago…to date it

has been a very positive

experience.”

– Matt Lange,

Sierra Verde

Construction

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EXPAND in Adjacent Fire and Site Works Markets

LINEAR TRENCH

DRAIN SYSTEMS

CATCH BASINS GREASE, OIL,

AND SEDIMENT

SEPARATION

FRAME AND GRATE

SYSTEMS

• $300M market opportunity

• Leverage Wilkins backflow, ACV, and fire valves

• Differentiate with product bundle and preconfigured assemblies

• Dedicated commercial teams

• $500M market opportunity

• Leverage Zurn linear drain and fiberglass separators

• Differentiate with combined offering and labor saving features

• Dedicated commercial teams

Expanding into $800M of adjacent market opportunity

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ACCELERATE Connected Products

Smart products maximize water system productivity for building owners

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. . . in summary

• Strong momentum

• Above-market growth with industry leading

margins

• Connected products innovation

• Building out retrofit and replacement

capabilities

• Clear path to continue winning through

varied construction cycles

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MARK PETERSONSenior Vice President and Chief Financial Officer

STRONG CASH GENERATOR

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Last 3 Years Next 3 Years

STRONG CASH GENERATOR

source: Company reports, Rexnord estimates. (1) Free Cash Flow is defined as Cash from Operations less Capital Expenditures, and is a 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 May 14, 2018.

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WITH DECLINING FINANCIAL LEVERAGE

(1) Net Debt Leverage is defined as the ratio of total debt less cash to pro forma LTM Adjusted EBITDA, and is a 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 May 14, 2018.

(2) Total Debt includes a New Market Tax Credit Receivable ($28), which is more than offset by an associated payable ($37) that is also included in Total Debt in all periods presented.

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CAPITAL ALLOCATION PRIORITIES

CAPITAL EXPENDITURES

• Target < 2% of Annual Revenue

DEBT REDUCTION

• Target 2x – 3x Net Debt / Adjusted EBITDA

ACQUISITIONS

• Strategic funnels in both platforms

SHARE REPURCHASE

• $160-million authorization remaining

COMMON DIVIDEND

• Possible consideration post-2019

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source: Company reports, Rexnord estimates.

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Disciplined buyer

ACQUISTION PRIORITIES

✓ Expand into product adjacencies to expand customer preference

✓ Accelerate penetration of targeted verticals to extend competitive advantages

✓ Expand relative exposure to faster-growing end markets, applications

✓ Maintain portfolio balance, diversification to moderate demand cyclicality

Strategic Planning

Proprietary Identification &

Cultivation

Internal Negotiation & Transaction

RBS Integration Process

• Strategic process focuses on market leadership, leveraging sustainable competitive advantages

• Proprietary process that benefits both buyer and seller

• Target ROIC > 10% within 12-36 months, timing subject to size and complexity

REXNORD UNMASKED

VAG’s financial profile

obscured stronger

metrics inherent in the

balance of Rexnord

Rexnord’s LBO heritage

and related accounting

distorts ROIC

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source: Company reports, Rexnord estimates. Notes: RXN Reported = FY18 financial results as filed May 14, 2018. Continuing Operations exclude VAG results which are now reported as Discontinued Operations. NOPAT = Adjusted Net Operating Profit After Tax,pro forma for World Dryer/Centa acquisitions. Net operating assets = Trade Receivables + Inventories – Accounts Payable + Net Property Plant & Equipment. ROIC = Return on Invested Capital. DSO = Days Sales Outstanding.

ROIC EXPANSION DRIVERS

HIGHER RETURNS

Innovation

SCOFR Cost Reduction

PLS & Strategic Pricing

LOWER INVESTED CAPITAL

Reduce Asset Intensity

Digital Productivity

Net Debt Reduction

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• Rexnord Business System is a Differentiator

• People – Plan – Process – Performance

• Strategy Leverages, Reinforces Competitive Advantages

• Digital Enterprise Strategy with Growth & Profitability Focus

• RBS Toolbox Expanded with 80/20 Tools

• Strategic Initiatives Gathering Momentum

• Platforms with Above-Market Growth Strategies

• Disciplined Approach to Capital Allocation

• Return on Invested Capital is Solid and Improving

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INVESTOR DAY 2018 TAKEAWAYS

Amplify Competitive Advantages – Expand Growth – Accelerate Innovation

Non-GAAP Reconciliations

Non-GAAP Reconciliations

(1) Represents restructuring costs comprised of work force reduction, lease termination, and other facility rationalization costs, including impairment charges.(2) Last-in first-out (LIFO) inventory adjustments are excluded in calculating Adjusted EBITDA as permitted by Rexnord’s credit agreement.(3) In completing the acquisition of Centa, the Company also acquired two previously established joint venture relationships in which the Company's owns a non-controlling interest in each of the entities and

therefore accounts for the investments in these entities utilizing the equity method.(4) Other expense (income), net includes the impact of foreign currency transaction losses (gains), sale of property, plant and equipment, and other miscellaneous expenses.

FYE March 31,

US$ in millions 2015 2016 2017 2018 Q1 2019

Net income from continuing operations $103.7 $86.9 $91.7 $206.6 $42.2

Interest expense, net 87.0 90.8 88.3 75.1 18.6

Provision (benefit) for income taxes 23.4 27.8 15.6 (19.5) 14.5

Depreciation and amortization 98.8 103.4 96.1 79.7 22.2

EBITDA $312.9 $308.9 $291.7 $341.9 $97.5

Adjustments to EBITDA:

Actuarial loss (gain) on pension and post

retirement benefit obligations$58.2 $13.0 ($2.6) ($3.3) —

Loss on extinguishment of debt — — 7.8 11.9 —

Restructuring and other similar charges(1) 9.0 14.0 26.1 14.1 3.1

Stock-based compensation expense 6.1 7.5 13.1 20.0 5.9

Acquisition-related fair value adjustment 3.2 — 4.3 1.8 1.6

LIFO expense (income)(2) (1.7) (0.8) (2.3) 3.3 0.2

Earnings from equity method investment(3) — — — — (1.5)

Other expense (income), net(4) 4.7 (8.4) 2.4 (4.4) (1.7)

Other non-cash adjustments — — 0.6 0.9 (0.1)

Subtotal of adjustments to EBITDA 79.5 25.3 49.4 44.3 7.5

Adjusted EBITDA $392.4 $334.2 $341.1 $386.2 $105.0

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Non-GAAP Reconciliations (Continued)

Q1 FY 2019 Q1 FY 2018

US$ in millions(except per share amounts) Net Income EPS Net Income EPS

Net income (loss) attributable to common

stockholders($6.5) $(0.05) $20.7 $0.20

Amortization 8.5 0.07 7.9 0.08

Restructuring Expense 3.1 0.03 2.3 0.02

Earnings from equity method investment(1) (1.5) (0.01) — —

Noncontrolling interest 0.1 —

Acquisition-related fair value

adjustment1.6 0.01 — —

Supply Chain Optimization & Footprint

Repositioning Program (2) 1.3 0.01 1.0 0.01

Dividend on Preferred Shares 5.8 0.05 — —

All Other Non-Operating (3) (1.8) (0.02) (1.1) (0.01)

Loss from discontinued operations(4) 42.8 0.35 2.9 0.03

Tax Impacts on Adjustments (5) (3.3) (0.03) (3.5) (0.04)

As Adjusted $50.1 $0.41 $30.2 $0.29

(1) In completing the acquisition of Centa, the Company also acquired two previously established joint venture relationships in which the Company's owns a non-controlling interest in each of the entities and therefore accounts for the investments in these entities utilizing the equity method.

(2) Represents accelerated depreciation associated with our strategic supply chain optimization and footprint repositioning initiatives.(3) All Other Non-Operating includes the impact of foreign currency transactions, sale of property, plant and equipment, and other miscellaneous income and expense.(4) In Q4 FY18, the Company announced plans to seek strategic alternatives for the VAG business. The Company is actively marketing the VAG business and expects the

divestiture to be completed during fiscal 2019.(5) 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.

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