Creditor Relations

Creditor Relations

Debt financing is an important part of Xylem's overall capital structure design and allows for optimization of cost of capital while providing financial flexibility for Xylem to meet its strategic objectives.

Key attributes of Xylem that support its financing strategy include:

1. Xylem is a leading global water technology company committed to “solving water” by creating innovative and smart technology solutions to meet the world’s water, wastewater and energy needs.

2. Xylem has a diverse set of customer applications, end markets and a broad geographical reach.

Business Segment

End Market

Geography Review

3. No individual customer accounted for more than 10% of Xylem’s consolidated revenues in 2020, 2019 or 2018.

4. Xylem demonstrates attractive cash flow characteristics.

cash flow

*Free Cash Flow = Net Cash from operating activities - Capital expenditures

**"Free Cash Flow Conversion" defined as Free Cash Flow divided by net income, excluding the gain on sale of businesses, non-cash impairment charges and significant deferred tax items. Our definitions of "free cash flow" and "free cash flow conversion" does not consider certain non-discretionary cash payments, such as debt.

Refer to appendix in 4Q Earnings Presentations for each respective year above for non-GAAP reconciliations.