PNR Pentair Plc

Risks

• General global economic and business conditions affect demand for our products.
• We compete in attractive markets with a high level of competition, which may result in pressure on our profit margins and limit our ability to maintain or increase the market share of our products.
• Our future growth is dependent upon our ability to transform and adapt our products, services, solutions, and organization to meet the demands of local markets in both developed and emerging economies and by developing or acquiring new technologies that achieve market acceptance with acceptable margins.
• We may not be able to identify, finance and complete suitable acquisitions and investments, and any completed acquisitions and investments may be unsuccessful or consume significant resources.
• We may not achieve some or all of the expected benefits of our business initiatives.
• Changes in U.S. or foreign government administrative policy, including changes to existing trade agreements, could have a material adverse effect on us.
• We may experience cost and other inflation.
• Intellectual property challenges may hinder our ability to develop, engineer and market our products.
• We have significant goodwill and intangible assets and future impairment of our goodwill and intangible assets could have a material adverse effect on our results of operations.
• A loss of, or material cancellation, reduction, or delay in purchases by, one or more of our largest customers could harm our business.
• Catastrophic and other events beyond our control may disrupt operations at our manufacturing facilities and those of our suppliers, which could cause us to be unable to meet customer demands or increase our costs, or reduce customer spending.
• Seasonality of sales and weather conditions could have a material adverse effect on our financial results.
• Covenants in our debt instruments may adversely affect us.
• We may increase our debt or raise additional capital, our credit ratings may be downgraded in the future, or our interest rates may increase, each of which could affect our financial condition, and may decrease our profitability.
• Our leverage could have a material adverse effect on our business, financial condition or results of operations.
• Disruptions in the financial markets could adversely affect us, our customers and our suppliers by increasing funding costs or reducing availability of credit.
• Our share price may fluctuate significantly.
• Violations of the U.S. Foreign Corrupt Practices Act, U.K. Bribery Act, and other anti-corruption laws outside the U.S. could have a material adverse effect on us.
• Our failure to satisfy international trade compliance regulations, and changes in U.S. government sanctions, could have a material adverse effect on us.
• We are exposed to potential environmental laws, liabilities and litigation.
• Our subsidiaries are party to asbestos-related product litigation that could adversely affect our financial condition, results of operations and cash flows.
• We are exposed to certain regulatory and financial risks related to climate change.
• Increased information technology security threats and computer crime pose a risk to our systems, networks, products and services, and we are exposed to potential regulatory, financial and reputational risks relating to the protection of our data.
• Changes in data privacy laws and our ability to comply with them could have a material adverse effect on us.
• We may be negatively impacted by litigation and other claims.
• Our focus on consumer solutions for residential and commercial water treatment as a strategic priority exposes us to certain risks that could have a material adverse impact on our revenue and profitability as well as our reputation.
• The spin-off transaction could result in substantial tax liability to us and our shareholders if the spin-off does not qualify as a tax-free transaction.
• We may be exposed to claims and liabilities as a result of the spin-off.
• We are subject to changes in law and other factors that may not allow us to maintain a worldwide effective corporate tax rate that is competitive in our industry.
• A change in our tax residency could have a negative effect on our future profitability, and may trigger taxes on dividends or exit charges.
• Irish law differs from the laws in effect in the United States and may afford less protection to holders of our securities.
• Transfers of our ordinary shares may be subject to Irish stamp duty.
• Our ordinary shares, received by means of a gift or inheritance could be subject to Irish capital acquisitions tax.