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 leader in the water industry and one of the few pure play water investments of significant size.

 

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






 

3. Xylem has low customer concentration with no customer greater than 10% of consolidated 2015 revenue.

 

4. Xylem benefits from a highly attractive recurring revenue profile driven by large installed base of equipment.

  • Aftermarket Parts & Services: 17% of 2015 revenue.
  • Replacement Equipment : 23% of 2015 revenue.*

* Approximation based on company estimates.

 

5. Xylem demonstrates attractive cash flow characteristics.

**Free Cash Flow and Conversion Non-GAAP Reconciliation