Slide 1: nVent First Quarter 2019 Earnings Presentation
nVent First Quarter 2019 Earnings Presentation April 25, 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: Executive Summary
Executive Summary Sales of $538 million grew 3% organically ROS was 17.9%; Segment Income grew 5% excluding corporate and other costs Q1 ‛19 Adjusted EPS of $0.39 Repurchased ~$80 million of shares One nVent and key verticals driving sales growth Q1 Segment Call-outs Price + productivity
Slide 4: Our nVent Strategy
Our nVent Strategy One nVent Accelerate Innovation and Grow Globally and in Focus on Attractive Verticals Connected Solutions Developing Regions Drive Productivity and Velocity Pursue Targeted Bolt-on Acquisitions Driving a strategy for growth and performance Q1 ’19 Earnings Presentation 4
Slide 5: Q1 '19 nVent Performance
Q1 ’19 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $12 $0 Organic Sales up 3% $539 $2 $538 ($15) Flat Price + productivity more than offset inflation YoY Segment Income up 3% • Up 5% excluding corporate and other costs 1 pts 2 pts 0 pts -3 pts Q1 ’18 Volume Price Acq. FX
Slide 6: A Deeper Dive into Electrical & Fastening Solutions ("EFS")
A Deeper Dive into Electrical & Fastening Solutions (“EFS”) A global leader in electrical and fastening solutions that Geographies* connect and protect electrical and mechanical systems 3% Other Developed 8% Deliver engineered solutions and strong application expertise 70% Developing US & Inno
Slide 7: Q1 '19 Segment Performance
Q1 ’19 Segment Performance Sales Segment Income Commentary ($M) Enclosures Continued growth in key verticals $256 $46 Up 1% Up 12% Price + productivity more than offset inflation Up 3% organic ROS 17.8% Year-over-year ROS expansion of 180 basis points Thermal Mgmt Industrial MRO grew double
Slide 8: 2019 Priorities
2019 Priorities • Accelerate One nVent initiatives Organic Growth • Drive key verticals • Grow with new products • Deliver price + productivity to offset inflation Margin Expansion • Drive supply chain efficiencies • Return cash in form of dividends and repurchases Capital Allocation • Focus on accr
Slide 9: Capital Deployment Strategy
Capital Deployment Strategy Maintain Investment Grade (BBB- / BBB) Invest in Organic Shareholder Acquisitions Growth Distributions • One nVent • Bolt-on acquisitions • Pay a competitive • Accelerate innovation • Fit nVent value dividend and connected solutions proposition • Repurchase shares to • Co
Slide 10: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary Q1 $945M Maturity 2019 Net Income $ 56 $300M @ 2023 Amortization 15 $800M 85% Fixed $500M @ 2028 Subtotal $ 71 Depreciation 8 Capital Expenditures (9) $145M 15% Variable 2023* Working Capital (82) Q1 ’19 Weighted Average Rate ~4.3% Note: Does n
Slide 11: 2019 Effective Tax Rate Update Regarding Proposed Regulations
2019 Effective Tax Rate Update Regarding Proposed Regulations Guided to ~18% tax rate in January • Proposed U.S. tax regulations could be 300 basis point headwind Expect to fully offset the impact on an annualized basis, beginning in 2020 Updating 2019 tax rate guidance to 19 - 20% • Reflects
Slide 12: Q2 '19 nVent Outlook
Q2 ’19 nVent Outlook Q2 ‘19 Q2 ‘18 Other Items Organic Sales +2% - 4% $543M Tax Rate ~21% EPS (reported) $0.35 - $0.39 $0.24 Net Interest Expense $11M - $12M EPS (adjusted) $0.42 - $0.46 $0.44 Shares ~176M Summary Higher tax rate reflects proposed U.S. tax regulations and the year-to-date impact
Slide 13: Full-Year 2019 nVent Outlook
Full-Year 2019 nVent Outlook Total nVent Organic Sales by Segment Original Guidance Updated Guidance Enclosures Up 2 - 4% Organic Up 2 - 4% No change Thermal Management Up 2 - 6% Sales EFS Up 2 - 4% ROS +40 - 60 bps No change Key Considerations Target FCF at 100% of Adjusted Net Income Adjusted EP
Slide 14: Summary
Summary We are a Leader in Connection and Protection Industry-leading positions and strong brands Attractive segments offering differentiated solutions Clear and proven strategy focused on driving organic growth One nVent approach accelerating performance Consistent and strong free cash fl
Slide 15: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Slide 16: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation Q1 ’19 Earnings Presentation 16
Slide 17: Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation Q1 ’19 Earnings Presentation 17
Slide 18: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation Q1 ’19 Earnings Presentation 18