Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q1 2021 Earnings Presentation
16 slides from Nvent Electric's earnings presentation, Apr 29, 2021
Slide 1: nVent First Quarter 2021 Earnings Presentation
nVent First Quarter 2021 Earnings Presentation April 29, 2021 1
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: Executive Summary
Executive Summary We are a leader in connection and protection ▪ Safety and well-being of our employees remains our top priority ▪ Return to growth and strong execution - Sales and earnings exceeded guidance - Q1 ROS of 17.7% with strong incrementals* - Free cash flow of $40M, above prior year ▪ Wel
Slide 4: Q1 2021 Summary
Q1 2021 Summary ▪ Sales of $549 million, up 5% and 2% organically ▪ ROS was 17.7%, incrementals of 56% Q1 2021 ▪ Adjusted EPS of $0.43, up 26% ▪ Generated free cash flow of $40 million compared to $2 million usage last year ▪ Strong operational performance with supply chain resiliency ▪ Enclosures d
Slide 5: Q1 '21 nVent Performance
Q1 ‘21 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $15 $549 $8 $2 ▪ Sales up 5%, Organic up 2% $521 $3 - FX added 3 points of growth +5% YoY ▪ Price plus productivity more than offset inflation ~1 pt ~1 pt flat ~3 pts ▪ Segment Income up 19% Q1 ‘20 Volume Price Acq. FX Q1 ‘21
Slide 6: Q1 '21 Segment Performance
Q1 ‘21 Segment Performance ($M) Sales Segment Income Commentary Strong volume and operational performance Enclosures $277 $49 Distributors restocking Up 7% Up 19% Industrial, Data Centers and Networking Solutions, Rail Up 4% organic ROS 17.6% (+180bps) ─ Commercial and Oil & Gas Broad based
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $947 Maturity Q1 2021 $800 $300 @ 2023 Net Income $ 65 84% Fixed $500 @ 2028 Amortization 16 Subtotal $ 81 $147 16% Variable 2023 Depreciation 10 Q1 ‘21 Weighted Average Rate ~3.9% Capital Expenditures (10) Note: Does not include $105 of c
Slide 8: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Excess Cash M&A Leverage the business to Shareholders ▪ Net debt to adjusted ▪ Expect full-year capex of ▪ Bolt-on acquisitions remain ▪ Maintain competitive EBITDA ratio at 2.1X $40 - $45M in 2021 a top priority dividend ‒ Vynckier: Expands non- ▪
Slide 9: 2021 nVent Outlook
2021 nVent Outlook Total nVent Key Drivers Guidance as of Updated Guidance 02/09/2021 ▪ Recovery occurring sooner than expected Up 4 to 8% Up 8 to 11% ▪ Anticipate stronger demand in the Industrial vertical Sales Up 3 to 6% organic Up 5 to 8% organic ▪ Expect increased pressure from inflation ▪ Seei
Slide 10: Q2 '21 nVent Outlook
Q2 ‘21 nVent Outlook Q2 ‘21 Q2 ‘20 Other Items Organic Sales Up 14 to 17% $447M Tax Rate 17 to 18% EPS (reported) $0.28 to $0.32 $0.15 Net Interest Expense ~$9M EPS (adjusted) $0.36 to $0.40 $0.29 Shares ~169M Key Drivers ▪ Recovery underway and continue to expect strong sales within Industrial and
Slide 11: 2021 Priorities
2021 Priorities ▪ Safety and well-being of our employees People ▪ Social responsibility ▪ Employee engagement ▪ High-growth verticals Growth ▪ Global sales ▪ New products and digital Working Capital and ▪ Margin expansion Productivity ▪ Inventory level optimization Capital Allocation ▪ Capital deplo
Slide 12: Strong Foundation – Bright Growth Prospects
Strong Foundation – Bright Growth Prospects ▪ Electrification of everything and the need for labor-saving solutions position us for growth ▪ Strong brands with leading positions ▪ High-performance culture and our Spark Management system are our foundation ▪ Top-tier margins with runway ▪ Strong cash
Slide 13: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 13 13
Slide 14: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation Q1 ‘21 Earnings Presentation 14
Slide 15: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation Q1 ‘21 Earnings Presentation 15
Slide 16: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation Q1 ‘21 Earnings Presentation 16