Slide 1: nVent Third Quarter 2018 Earnings Presentation
nVent Third Quarter 2018 Earnings Presentation October 25, 2018
Slide 2: Forward-Looking Statement
Forward-Looking Statement 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 historical fact are fo
Slide 3: Key Definitions and Notes
Key Definitions and Notes Except as otherwise noted all references to 2018 and 2017 represent our results for the period indicated, presented on an adjusted basis “Organic Sales" refers to GAAP revenue excluding (1) the impact of currency translation and (2) the impact of revenue from acquired b
Slide 4: Executive Summary
Executive Summary Sales of $564 million grew 5% organically Q3 ‛18 ROS was 20.4% EPS of $0.46 Strong sales growth in Enclosures and Electrical & Fastening Solutions (“EFS”) Segment Call-outs Thermal Management returned to organic sales growth ROS expanded year-over-year in Enclosures and
Slide 5: nVent Strategy
nVent Strategy One nVent Accelerate Focus on Attractive Grow Globally and in Innovation and Verticals Developing Regions Connected Solutions Drive Productivity and Velocity Pursue Targeted Bolt-on Acquisitions Q3 ‛18 Earnings Presentation 5
Slide 6: Q3 '18 nVent Performance
Q3 ’18 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $11 $0 $564 Organic sales up 5% $19 ($7) • Enclosures: Up 8% $541 ~4% • Thermal Management: Up 2% YoY • EFS: Up 6% Segment Income up 1%, up 5% 3 pts 2 pts 0 pts -1 pts excluding corporate and other costs Q3 ’17 Volume Pric
Slide 7: A Deeper Dive Into Thermal Management
A Deeper Dive Into Thermal Management Provide electric thermal solutions Geographies* that connect and protect people, 2% critical infrastructure, industrial Other Developed processes and buildings 14% 55% Developing US & Strong brand recognition as a global Canada leader in electric heat tracin
Slide 8: Q3 '18 Segment Performance
Q3 ‛18 Segment Performance Enclosures Thermal Management EFS ($ in millions) ($ in millions) ($ in millions) Sales Sales Sales $242 $260 $159 $157 $140 $147 +7% -1% +5% Q3 ’17 Q3 ’18 Q3 ’17 Q3 ’18 Q3 ’17 Q3 ’18 Segment Income Segment Income Segment Income $44 $47 $43 $42 $39 $35 +7% -3% +11% ROS 18.
Slide 9: Q4 '18 nVent Outlook
Q4 ‛18 nVent Outlook Q4 ‛18 Guidance Q4 ‛17 Organic Sales +2% - 4% $542M ROS 19% - 20% 18.7% EPS (reported) $0.37 - $0.41 EPS (adjusted) $0.44 - $0.48 Summary Other Considerations Continued sales strength Tax rate: ~18% Net Interest Expense: $11M - $12M ROS YoY gains in Enclosures Corporat
Slide 10: Full-Year 2018 nVent Pro Forma Outlook
Full-Year 2018 nVent Pro Forma Outlook Enclosures Thermal Mgmt. EFS Total Organic Sales Up 5 - 6% ~Flat Up 2 - 4% Up 3 - 4% ROS ~Flat +100 - 120bps ~Flat ~Flat Corporate Expenses ~$50M Net Interest Expense ~$38M Tax Rate ~18% Reported EPS $1.28 - $1.32 Adjusted EPS $1.73 - $1.77 Shares ~182M Key Con
Slide 11: Capital Allocation Update
Capital Allocation Update Return Excess Reinvest in Manage Leverage M&A Cash to the business Shareholders • Paid down $50M of • Target capex ~2% • Focus on bolt-on • Generated year-to- debt in September of Sales acquisitions date Free Cash • Target Debt to • One nVent growth • Target ROIC greater Fl
Slide 12: Summary: We are a Leader in Connection and Protection
Summary We are a Leader in Connection and Protection Industry-leading positions in growing verticals Attractive segments with differentiated growth opportunities Clear strategy and focused on driving organic growth One nVent approach accelerating performance Consistent and strong free cash
Slide 13: GAAP to Non-GAAP Measurements & Reconciliations
Appendix GAAP to Non-GAAP Measurements & Reconciliations
Slide 14: Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation Q3 ‛18 Earnings Presentation 14
Slide 15: Reported to Adjusted 2017 Reconciliation
Reported to Adjusted 2017 Reconciliation Q3 ‛18 Earnings Presentation 15
Slide 16: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation Q3 ‛18 Earnings Presentation 16