EX-99.2

XYLEM INC.

Q1 2013 EARNINGS RELEASE

APRIL 30, 2013

Exhibit 99.2

FORWARD-LOOKING STATEMENTS

This

document

contains

information

that

may

constitute

“forward-looking

statements.”

Forward-looking

statements

their

nature

address

matters

that

are,

different

degrees,

uncertain.

Generally,

the

words

“anticipate,”

“estimate,”

“expect,”

“project,”

“intend,”

“plan,”

“believe,”

“target”

and similar expressions identify forward-looking statements, which generally

are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not

forward-looking.

These forward-looking statements include, but are not limited to, statements about the separation of Xylem Inc. (the

“Company”) from ITT Corporation in 2011, capitalization of the Company, future strategic plans and other statements that

describe the Company’s business strategy, outlook, objectives, plans, intentions or goals, and any discussion of future

operating or financial performance. All statements that address operating performance, events or developments that we

expect

anticipate

will

occur

the

future

—

including

statements relating to orders, revenues, operating margins and

earnings

per

growth,

and

statements

expressing

general

views

about

future

operating

results

—

are

forward-looking

statements.

Caution should be taken not to place undue reliance on any such forward-looking statements because they involve risks,

uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in, or

reasonably

inferred

from,

such

statements.

The

Company

undertakes

obligation

publicly

update

revise

any

forward-

looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition,

forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially

from the Company’s historical experience and our present expectations or projections. These risks and uncertainties include,

but

are

not

limited

to,

those

set

forth

Item

our

Annual

Report

Form

10-K,

and

those

described

from

time

subsequent reports filed with the Securities and Exchange Commission.

2013 INVESTOR & ANALYST DAY

Q1’13 XYLEM RESULTS

* See appendix for non-GAAP reconciliations

European Market Weakness, Project Timing

Volume Decline & Continued Investment

Partially Offset by Cost Reductions

Restructuring & Realignment Actions Underway

Constant

Currency

Basis *

Q1 2013 EARNINGS RELEASE

FINANCIAL

PERFORMANCE SUMMARY

Orders

$962M Book to Bill 1.09

Revenue

$879M

-5%

Gross Margin

38.0% -120 bps

Operating Margin*

8.9% -230 bps

EPS *

$0.27

In Line with Expectations

Free Cash Flow *

$10M

Normal Seasonality, Lower Income, Timing of Tax Payments

BUSINESS UPDATE

Q1 2013 EARNINGS RELEASE

SIGNIFICANT PROGRESS MADE ON CRITICAL 2013 ACTIVITIES

•

Enhancing

Aftermarket

Capabilities

(PIMS

Acquisition/TotalCare)

•

Focused

Ensuring

Robust

Delivery

and

Responsiveness

•

Advancing

Acquisition

Strategy

•

New

Product

Launches

Gaining

Traction

•

Accelerating

Geographic

Expansion

•

Executing

Restructuring

Realignment

Plans

•

Continuing

Drive

Cost

Savings

Through

Lean

Six

Sigma

and

Global

Sourcing

Initiatives

•

Focused

Business

Simplification

Initiatives

DELIVER

CUSTOMER

VALUE

DRIVE

PROFITABLE

GROWTH

IMPROVE

BUSINESS

SUSTAINABILITY

Q1’13 XYLEM PERFORMANCE

Q1 2013 EARNINGS RELEASE

* See appendix for non-GAAP reconciliations

MANAGING THROUGH MARKET CONDITIONS & TOUGH PRIOR YEAR COMPS

Q1’13 XYLEM PERFORMANCE

Q1 2013 EARNINGS RELEASE

* See appendix for non-GAAP reconciliations

Q1 EPS PERFORMANCE IN LINE WITH EXPECTATIONS

Q1’13 WATER INFRASTRUCTURE PERFORMANCE

Q1 2013 EARNINGS RELEASE

* See appendix for non-GAAP reconciliations

MAINTAINING INVESTMENT DESPITE LOWER VOLUME

Q1’13 APPLIED WATER PERFORMANCE

Q1 2013 EARNINGS RELEASE

* See appendix for non-GAAP reconciliations

CUSTOMER EXCELLENCE & PRODUCTIVITY DRIVE MARGIN PERFORMANCE

Q1 2013 EARNINGS RELEASE

XYLEM FINANCIAL POSITION

•

Free Cash Flow Decline

•

Lower Income

•

Timing of Tax Payments

•

Capex > 1 reinvestment ratio

Capital Summary/Liquidity

•

Strong cash position

•

No Significant Debt Maturities Until 2016

•

1.3x Net Debt/Adj. TTM EBITDA

•

$600M

Revolving

Credit

Facility

Unutilized

•

Access

Commercial

Paper

Unutilized

FCF%

61%

-24%

March 31, 2013

Cash

375

Debt

1,205

Net Debt

830

Shareholders’

Equity

2,040

Net Capital

2,870

Net Debt to Net Capital

29%

(Dollars, In Millions)

* See Appendix for Non-GAAP Reconciliations

** (AR+INV-AP-Customer Advances) / Revenue (Adjusted for Acquisitions)

Q1 2013 EARNINGS RELEASE

2013 FINANCIAL GUIDANCE SUMMARY

* See appendix for non-GAAP reconciliations

2013 Full Year

Financial Outlook

Growth

2013E vs. 2012

Revenue

(Mid-Point)

Total Growth

Organic

Acquisition

Xylem Consolidated

~$3,925M

~3 to 4% 0 to 1% 2% 1%

Water Infrastructure

~$2,540M

~4 to 5%

0 to 1% 3% 1%

Applied Water

~$1,450M

~1 to 2% 0 to 1% 0% 1%

Segment Margin *

13.7% to 14.2%

-60 bps to -10 bps

Operating

Margin *

12.2%

to 12.7%

-70 bps to

-20 bps

EPS *

$1.79 to $1.89

$1.84 Mid Point

Free Cash Flow Conversion

~95%

Restructuring Pmts, Realignment Capex, & CHQ Relocation

Guidance

Assumptions:

Operating

Tax Rate

~21%

1H’13 Rate: ~22%; 2H’13

Rate: ~20%

Count

~186.4M

Share Repurchase Program Maintains Current Share Count

Items

Excluded from EPS:

Restructuring &

Realignment Costs

~$60M to $70M

Restructuring Costs:

~$40M to $50M

REVENUE OUTLOOK BY END MARKET

PLANNING ASSUMPTIONS SUPPORT MODEST SECOND HALF RECOVERY

FY’13

vs. PY

vs.

Outlook

Planning Assumptions

Industrial

Flat to Up Low

Single Digit

•

2H U.S. Improvement/Easier

Comps

•

Europe Challenged

Public Utility

Flat

•

Stable OPEX Market

•

Modest

Improvement in U.S.

Capital Projects

Commercial

Flat to Up Low

Single Digit

•

Modest 2H U.S. Improvement

•

Successful Launch of New

Products

Residential

Flat to Up Low

Single Digit

•

U.S. Markets Continue

to Improve

•

Europe Stabilizes

Agriculture

Flat

•

Good

Q1 Start /Tough FY

Comparison

Q1 2013 EARNINGS RELEASE

Q1 2013 EARNINGS RELEASE

2013 EPS GUIDANCE

* See appendix for non-GAAP reconciliations

Q1 2013 EARNINGS RELEASE

SUMMARY

•

Completed

PIMS

and

MultiTrode

Acquisitions

…

Integration

Underway

•

Orders/Revenue Slightly Weaker Than Expected

•

Operations & Cost Reduction Activities Deliver EPS In Line with Expectations

•

Successful Product Launches

•

Continuing to Invest for Growth …

Expect Additional Product Launches in 2013

•

Focused on Driving Cost Savings Through Lean Six Sigma and Global Sourcing Initiatives

•

Executing 2013 Restructuring & Realignment Actions

•

Acquisition Pipeline Robust

Q1 PERFORMANCE

2013 OUTLOOK

Q1 2013 EARNINGS RELEASE

APPENDIX

Q1 2013 EARNINGS RELEASE

NON-GAAP MEASURES

Management views key performance indicators including revenue, gross margins, segment operating income and margins, orders growth, free cash flow,

working capital, and backlog, among others. In addition, we consider certain measures to be useful to management and investors evaluating our operating

performance for the periods presented, and provide a tool for evaluating our ongoing operations, liquidity and management of assets. This information can

assist investors in assessing our financial performance and measures our ability to generate capital for deployment among competing strategic alternatives

and initiatives. These metrics, however, are not measures of financial performance under GAAP and should not be considered a substitute for revenue,

operating income, net income, earnings per share (basic and diluted) or net cash from operations as determined in accordance with GAAP. We consider the

following non-GAAP measures, which may not be comparable to similarly titled measures reported by other companies, to be key performance indicators:

“Organic revenue" and "Organic orders”

defined as revenue and orders, respectively, excluding the impact of foreign currency fluctuations, intercompany

transactions,

and

contributions

from

acquisitions

and

divestitures.

Divestitures

include

sales

portions

our

business

that

did

not

meet

the

criteria

for

classification as a discontinued operation or insignificant portions of our business that we did not classify as a discontinued operation. The period-over-

period change resulting from foreign currency fluctuations assumes no change in exchange rates from the prior period.

“Constant currency”

defined as financial results adjusted for currency translation impacts by translating current period and prior period activity using the

same currency conversion rate. This approach is used for countries whose functional currency is not the U.S. dollar.

“EBITDA”

defined as earnings before interest, taxes, depreciation, amortization expense, and share-based compensation. “Adjusted EBITDA”reflects the

adjustment to EBITDA to exclude for non-recurring separation costs associated with the Xylem spin-off from ITT Corporation (not excluded for 2013) as well

as non-recurring restructuring and realignment costs.

"Adjusted Operating Income", "Adjusted Segment Operating Income", and “Adjusted EPS”

defined as operating income and earnings per share, adjusted to

exclude non-recurring separation costs associated with the Xylem spin-off from ITT Corporation (not excluded for 2013), non-recurring restructuring and

realignment costs and tax-related special items.

“Free Cash Flow”

defined as net cash from operating activities, as reported in the Statement of Cash Flow, less capital expenditures as well as adjustments

for other significant items that impact current results which management believes are not related to our ongoing operations and performance. Our

definition of free cash flows does not consider non-discretionary cash payments, such as debt.

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

ORGANIC & CONSTANT CURRENCY REVENUE GROWTH

Constant Currency

(A)

(B)

(C)

(D)

(E)

(F) = B+C+D+E

(G) = F/A

(H) = (B + D) / A

Change

% Change

Change

% Change

Revenue

2013 v. 2012

FX Contribution

Eliminations

Adj. 2013 v. 2012

2013

2012

Quarter Ended March 31, 2013

Xylem Inc.

879

925

(46)

-5.0%

(23)

(67)

-7.2%

-4.8%

Water infrastructure

551

584

(33)

-5.7%

(23)

(55)

-9.4%

-5.5%

Applied Water

345

355

(10)

-2.8%

(2)

(12)

-3.4%

-2.8%

Note: Due to rounding the sum of segment amounts may not agree to Xylem totals.

Acquisitions /

Divestitures

Xylem Inc. Non-GAAP Reconciliation

Reported vs. Organic & Constant Currency Revenue

($ Millions)

(As Reported - GAAP)

(As Adjusted - Organic)

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

ORGANIC & CONSTANT CURRENCY ORDER GROWTH

Constant Currency

(A)

(B)

(C)

(D)

(E)

(F) = B+C+D+E

(G) = F/A

(H) = (B + D) / A

Change

% Change

Change

% Change

Orders

2013 v. 2012

FX Contribution

Eliminations

Adj. 2013 v. 2012

2013

2012

Quarter Ended March 31, 2013

Xylem Inc.

962

1,004

(42)

-4.2%

(26)

(66)

-6.6%

-4.0%

Water infrastructure

601

638

(37)

-5.8%

(26)

(61)

-9.6%

-5.5%

Applied Water

378

382

(4)

-1.0%

(1)

(5)

-1.3%

-1.0%

Note: Due to rounding the sum of segment amounts may not agree to Xylem totals.

Acquisitions /

Divestitures

Xylem Inc. Non-GAAP Reconciliation

Reported vs. Organic & Constant Currency Order Growth

($ Millions)

(As Reported - GAAP)

(As Adjusted - Organic)

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

ADJUSTED DILUTED EPS

Q1 2012

Q1 2013

As Reported

Adjustments

Adjusted

As Reported

Adjustments

Adjusted

Total Revenue

925

879

Operating Income

104

Operating Margin

10.7%

11.2%

7.5%

8.9%

Interest Expense

(14)

(13)

Other Non-Operating Income (Expense)

(1)

(2)

Income before Taxes

Provision for Income Taxes

(21)

(1)

(22)

(10)

(3)

(13)

Net Income

Diluted Shares

185.9

186.4

Diluted EPS

0.34

0.02

0.36

0.22

0.05

0.27

One time separation costs

Net tax impact of separation costs

Restructuring & realignment costs

Tax impact of restructuring & realignment costs

Xylem Inc. Non-GAAP Reconciliation

Adjusted Diluted EPS

($ Millions, except per share amounts)

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

ADJUSTED OPERATING INCOME

'13

'12

Total Revenue

• Total Xylem

879

925

• Water Infrastructure

551

584

• Applied Water

345

355

Operating Income

• Total Xylem

• Water Infrastructure

• Applied Water

Operating Margin

• Total Xylem

7.5%

10.7%

• Water Infrastructure

7.6%

12.8%

• Applied Water

11.6%

11.3%

Separation Costs

• Total Xylem

• Water Infrastructure

• Applied Water

Restructuring & Realignment Costs

• Total Xylem

• Water Infrastructure

• Applied Water

Adjusted Operating Income*

• Total Xylem

104

• Water Infrastructure

• Applied Water

Adjusted Operating Margin*

• Total Xylem

8.9%

11.2%

• Water Infrastructure

9.4%

13.2%

• Applied Water

12.2%

11.5%

Xylem Inc. Non-GAAP Reconciliation

Adjusted Operating Income

($ Millions)

*Adjusted Operating Income excludes restructuring &

realignment costs in 2013 and excludes non-recurring separation

costs in 2012.

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

FREE CASH FLOW

2013

2012

Net Cash - Operating Activities

Capital Expenditures

(30)

(31)

Free Cash Flow, including separation costs

(10)

Cash Paid for Separation Costs (incl. Capex)

Free Cash Flow, excluding separation costs*

(10)

Net Income

Separation Costs, net of tax (incl. tax friction)

Net Income, excluding separation costs*

Free Cash Flow Conversion

-24%

61%

* Separation costs are not excluded in 2013

Xylem Inc. Non-GAAP Reconciliation

Net Cash - Operating Activities vs. Free Cash Flow

Three Months Ended March 31, 2013 and 2012

($ Millions)

Three Months Ended

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

XYLEM EBITDA & ADJ. EBITDA

Total

Pre-Tax Net Income

Interest Expense (Income), net

Depreciation

Amortization

Stock Compensation

EBITDA

106

Restructuring & Realignment

Adjusted EBITDA

118

Revenues

879

Adjusted EBITDA Margin

13.4%

Total

Pre-Tax Net Income

115

100

388

Interest Expense (Income), net

Depreciation

Amortization

Stock Compensation

EBITDA

136

166

154

147

603

Separation Costs

Restructuring & Realignment

Adjusted EBITDA

141

172

163

173

649

Revenues

925

966

931

969

3,791

Adjusted EBITDA Margin

15.2%

17.8%

17.5%

17.9%

17.1%

2013

2012

Xylem Inc. Non-GAAP Reconciliation

EBITDA and Adjusted EBITDA by Quarter

($ Millions)

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

WATER INFRASTRUCTURE EBITDA & ADJ. EBITDA

Total

Pre-Tax Net Income

Interest Expense (Income), net

Depreciation

Amortization

Stock Compensation

EBITDA

Restructuring & Realignment

Adjusted EBITDA

Revenues

551

Adjusted EBITDA Margin

14.7%

Total

Pre-Tax Net Income

342

Interest Expense (Income), net

(1)

Depreciation

Amortization

Stock Compensation

EBITDA

102

118

115

118

453

Separation Costs

Restructuring & Realignment

Adjusted EBITDA

104

119

134

476

Revenues

584

609

595

637

2,425

Adjusted EBITDA Margin

17.8%

19.5%

20.0%

21.0%

19.6%

2013

2012

Xylem Inc. Non-GAAP Reconciliation

EBITDA and Adjusted EBITDA by Quarter

Water Infrastructure

($ Millions)

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

APPLIED WATER EBITDA & ADJ. EBITDA

Total

Pre-Tax Net Income

Interest, net

Depreciation

Amortization

Stock Compensation

EBITDA

Restructuring & Realignment

Adjusted EBITDA

Revenues

345

Adjusted EBITDA Margin

14.8%

Total

Pre-Tax Net Income

170

Interest, net

Depreciation

Amortization

Stock Compensation

(1)

EBITDA

200

Separation Costs

Restructuring & Realignment

Adjusted EBITDA

207

Revenues

355

373

350

346

1,424

Adjusted EBITDA Margin

13.8%

15.8%

15.1%

13.3%

14.5%

2013

2012

Xylem Inc. Non-GAAP Reconciliation

EBITDA and Adjusted EBITDA by Quarter

Applied Water

($ Millions)

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

GUIDANCE

Illustration of Mid Point Guidance

2013 Guidance

FY '12

FY '13

As Reported

Adjustments

Adjusted

As Projected

Adjustments

Adjusted

Total Revenue

3,791

3,925

Segment Operating Income

512

542

484

549

Segment Operating Margin

13.5%

14.3%

12.3%

14.0%

Corporate Expense

(16)

Operating Income

443

489

425

490

Operating Margin

11.7%

12.9%

10.8%

12.5%

Interest Expense

(55)

Other Non-Operating Income (Expense)

(2)

Income before Taxes

388

434

368

433

Provision for Income Taxes

(91)

(13)

(104)

(72)

(19)

(91)

Net Income

297

330

296

342

Diluted Shares

186.2

186.4

Diluted EPS

1.59

0.18

1.77

1.59

0.25

1.84

One time separation, restructuring and realignment costs incurred at the segment level

One time separation, restructuring and realignment costs incurred at the corporate level

Net tax impact of above items, plus the addition of special tax items

Restructuring and realignment costs incurred at the segment level

Xylem Inc. Non-GAAP Reconciliation

Guidance

($ Millions, except per share amounts)

Q1 2013 EARNINGS RELEASE

NON-GAAP RECONCILIATION:

ADJ. OPERATING INCOME AND MARGIN

Mid Point Guidance

2008

2009

2010

2011

2012

2013E

Revenue

3,291

2,849

3,202

3,803

3,791

3,925

Operating Income

315

276

388

395

443

425

Operating Margin

9.6%

9.7%

12.1%

10.4%

11.7%

10.8%

Restructuring & Realignment

Separation Costs

Adjusted Operating Income

356

307

403

482

489

490

Adjusted Operating Margin

10.8%

12.6%

12.7%

12.9%

12.5%

Standalone Costs

Adj. Operating Income, excl. Standalone Costs

356

307

403

487

517

490

Adjusted Operating Margin, excl. Standalone Costs

10.8%

12.6%

12.8%

13.6%

12.5%

Xylem Inc. Non-GAAP Reconciliation

Adjusted Operating Income

($ Millions)

Q1 2013 EARNINGS RELEASE