Nvent Electric Plc · NYSE:NVT
Nvent Electric — 2019 Electrical Products Group Conference
20 slides from Nvent Electric's conference presentation, May 22, 2019
Slide 1: 2019 Electrical Products Group Conference
2019 Electrical Products Group Conference Beth Wozniak CEO May 22, 2019
Slide 2: Forward-Looking Statement and Key Definitions
Forward-Looking Statement and Key Definitions CAUTION CONCERNING FORWARD-LOOKING STATEMENTS This presentation contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of hi
Slide 3: Leading Electrical Company Focused on Connection and Protection
Leading Electrical Company Focused on Connection and Protection Company Characteristics 2018 Financials Industry-leading positions and strong brands ~$2.2B $301M Focused on improving utilization, lowering costs and Revenue Pro forma FCF maximizing customer uptime Attractive margin profile ~19%
Slide 4: Key Takeaways
Key Takeaways Where we focus, we win with continued progress our first year within key growth initiatives Top tier margins sustainable with opportunity to expand Strong cash generation business, thus deploying capital with a balanced and flexible capital allocation strategy First quarter was in-line
Slide 5: Our nVent Strategy
Our nVent Strategy One nVent Accelerate Innovation and Grow Globally and in Focus on Attractive Verticals Connected Solutions Developing Regions Drive Productivity and Velocity Pursue Targeted Bolt-on Acquisitions Driving a strategy for growth and performance 2019 Electrical Products Group Conferenc
Slide 6: Drove Organic Sales Growth in 2018 of 5%
Drove Organic Sales Growth in 2018 of 5% Innovation and Globally and in One nVent Attractive Verticals Connected Solutions Developing Regions Data Centers and Networking Solutions Digital Product Commercial Information 98% Rail and Transit China, India, Middle East Strategic partnership with Industr
Slide 7: One nVent Digital
One nVent Digital Business Strategy 2018 Achievements One nVent website Digitize Go-To-Market Offer Connected Solutions One CRM platform 98% digital product data available Enclosures configurators launched 2019 Accelerate Digital Transformation Enhanced customer experience Digitize Operati
Slide 8: Digital Progress: Hoffman on Demand
Digital Progress: Hoffman on Demand Quick-ship program launched April 15th Preferred products • ~45% of revenue • Full product range Driving demand to Hoffman on Demand partners • Digital guided selling tools • Direct customers to authorized distributor locator Velocity and availability • Pr
Slide 9: Attractive Vertical: Data Center & Networking Solutions
Attractive Vertical: Data Center & Networking Solutions Driving Growth in DNS Focusing on high FASTENING & FIXING density heat NETWORKING & SERVER CABINETS applications for hyper scale datacenters RACK POWER DISTRIBUTION LEAK DETECTION Adding new products for power and cooling solutions MONITORI
Slide 10: Attractive Vertical: Commercial
Attractive Vertical: Commercial Building Protection Heating ERICO Lightning RAYCHEM Pipe Freeze Protection Protection RAYCHEM Water and RAYCHEM Snow Melting Fuel Leak Detection and De-Icing CADDY Seismic NUHEAT Floor Protection Heating ERICO Grounding and RAYCHEM Hot Water Bonding Temperatur
Slide 11: Innovation and Connected Solutions: RAYCHEM ELEXANT
Innovation and Connected Solutions: RAYCHEM ELEXANT Strategic Actions 2019 Focus Digitization: connectivity and analytics RAYCHEM ELEXANT family launches User experience Cloud connectivity and analytics Global platforms Expanded services Launching a New ELEXANT Family of Connected Contro
Slide 12: Top Tier Operating Margins
Top Tier Operating Margins 2018 Peer Adj. EBITA Margins Adj. EBITA Margin by Segment 24.7% 2019 21.3% 2018 19.1% 18.7% Guidance 16.1% 14.9% 14.2% 10.9% Enclosures 17.1% nVent Thermal 24.7% Management nVent Historical Adj. EBITA Margin +40 - 60 19.0% 19.2% 19.5% 19.1% bps EFS 25.3% nVent 19.1% +40 -
Slide 13: Capital Deployment Strategy
Capital Deployment Strategy Maintain Investment Grade (BBB- / BBB) Invest in Organic Shareholder Acquisitions Growth Distributions • One nVent • Bolt-on acquisitions • Pay a competitive • Accelerate innovation • Fit nVent value dividend and connected solutions proposition • Repurchase shares to • Co
Slide 14: 2019 Priorities
2019 Priorities • Accelerate One nVent initiatives Organic Growth • Drive key verticals • Grow with new products • Deliver price + productivity to offset inflation Margin Expansion • Drive supply chain efficiencies • Return cash in form of dividends and repurchases Capital Allocation • Focus on accr
Slide 15: 2019 nVent Plan
2019 nVent Plan Long Term Outlook 2019 Guidance 2 - 4% Organic Growth Sales Growth 1 - 2 Points above GDP Expected Real GDP at 2 - 3% 40 - 60bp ROS Expansion Attractive Margins EPS grows multiple points faster than sales EPS of $1.80 - $1.90 ~$320M Free Cash Flow > Net income 100% of adj. NI convers
Slide 16: Thank You
Thank You
Slide 17: GAAP to Non-GAAP Measurements & Reconciliations
GAAP to Non-GAAP Measurements & Reconciliations
Slide 18: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation 2019 Electrical Products Group Conference 18
Slide 19: Reported to Adjusted 2015 - 2018 Reconciliation
Reported to Adjusted 2015 - 2018 Reconciliation 2019 Electrical Products Group Conference 19
Slide 20: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth for the year ended December 31, 2018 (Unaudited) Full Year Net Sales Growth Organic Currency Acq./Div. Total nVent 4.7% 0.8% —% 5.5% nVent Electric plc Reconciliat
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