1、0FLOW CONTROL:A HIGHLY ATTRACTIVE INVESTMENT OPPORTUNITYSEPTEMBER 20241Strong market tailwinds and multiple value creation levers make flow control an attractive sector for potential investment Flow ControlA Highly Attractive Investment OpportunitySTRONG MARKET TAILWINDSVALUE CREATION OPPORTUNITIESI

2、NFRASTRUCTURE SPENDINGRESHORING INITIATIVES&SUPPLY CHAIN DYNAMICSENERGY TRANSITION&ELECTRIFICATIONTECHNOLOGICAL INNOVATIONORGANIC GROWTH ACCELERATIONOPERATIONAL ENHANCEMENTTECHNOLOGICAL ADVANCEMENTSM&AIncreased government spending,with$500Bof funding earmarked for infrastructure projects over the ne

3、xt five yearsAdditional spend upside from constantlyevolving regulatory environmentThe build-out of domestic manufacturing capabilities to strengthen previouslyoutsourced supply chains has created pull-through demand for a wide range of flowcontrol productsIn 2023,publicly traded companies alone inv

4、ested over$5B in energy innovation projects Clean energy investments have begun tooutpace fossil fuel investments;for every$1 offossil fuel investment,$1.70 is being invested in clean energy technologyRapid adoption of advanced technologies and digital solutions are optimizing efficiency,increasing

5、cost savings,and improving throughput,creating proven value for usersMultiple secular and long-term market tailwinds support increased demand in the flow control sectorWide range of operational improvementopportunities,including footprint optimization,LEAN implementation,and continuous improvement p

6、ursuitRapidly evolving end markets create ongoing demand for new and more technologicallyadvanced productsLarge,fragmented market creates opportunityto employ buy-and-build strategySources:EY,Reshoring Initiative,International Energy Agency,McKinsey&Company2Flow ControlMarket OverviewSources:Grandvi