Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q3 2019 Earnings Presentation
15 slides from Nvent Electric's earnings presentation, Oct 30, 2019
Slide 1: nVent Third Quarter 2019 Earnings Presentation
nVent Third Quarter 2019 Earnings Presentation October 30, 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 $560 million down 1% organically ROS was 20.5%, expanded 10 bps Q3 ‛19 Adjusted EPS of $0.49, up 7% Closed Eldon acquisition EFS grew sales 3% organically and expanded ROS by 110 bps Q3 Segment Strong operational performance within Enclosures Call-outs Strong
Slide 4: Our nVent Strategy
Our nVent Strategy One nVent Accelerate Innovation and Grow Globally and in Focus on Attractive Verticals Connected Solutions Developing Regions Drive Productivity and Velocity Pursue Targeted Bolt-on Acquisitions Driving a strategy for growth and performance Q3 ’19 Earnings Presentation 4
Slide 5: Q3 '19 nVent Performance
Q3 ’19 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $564 $8 $560 Organic Sales down 1% $9 ($7) ($14) (~1%) Price + productivity more than offset inflation YoY • Net productivity turned positive Segment Income flat -3 pts 2 pts 1 pt -1 pt • Solid EFS and Enclosures perform
Slide 6: Q3 '19 Segment Performance
Q3 ’19 Segment Performance Sales Segment Income Commentary ($M) Strong sales in One nVent initiatives Enclosures $263 $48 Eldon contributed ~$8M in Sales Up 1% Flat YoY Strong operational performance Down 1% organic ROS 18.1% ─ Slowdown in Industrial vertical Thermal Mgmt High teens order gr
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary $1,156M Maturity Q3 YTD 2019 2019 Net Income $ 60 $ 177 $800M $300M @ 2023 75% Fixed Amortization 16 46 $500M @ 2028 Subtotal $ 76 $ 223 Depreciation 9 26 $356M Capital Expenditures (11) (29) 25% Variable 2023 Working Capital 13 (99) Q3 ‘19 Wei
Slide 8: Q4 '19 nVent Outlook
Q4 ’19 nVent Outlook Q4 ‘19 Q4 ’18 Other Items Organic Sales -2% - Flat $568M Tax Rate 23% - 24% EPS (reported) $0.35 - $0.39 $0.37 Net Interest Expense ~$11M EPS (adjusted) $0.42 - $0.46 $0.45 Shares ~170M Summary Industrial vertical expected to be down along with softening Commercial vertical
Slide 9: Full-Year 2019 nVent Outlook
Full-Year 2019 nVent Outlook Total nVent Organic Sales by Segment Guidance as of Guidance as of Updated Guidance Updated Guidance 08/01/2019* 08/01/2019 Enclosures Up 1 - 3% Up ~1% Organic Flat - Up 2% Flat - Up 1% Sales Thermal Down 2 - Up 2% Down ~2% Management EFS Up 2 - 4% Up 2 - 3% ROS +30 - 60
Slide 10: 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 11: Summary
Summary We are a Leader in Connection and Protection Strong organic sales growth in EFS, tracking to second half ROS expansion Enclosures executing plan to expand margins despite softer Industrial vertical Another quarter of strong Thermal Management orders and backlog growth Continuing to e
Slide 12: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Slide 13: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2019 excluding the effect of 2019 adjustments (Unaudited) Actual Forecast (1) In millions, except per-share data First Quarter Second Quarter Third Quarte
Slide 14: Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2018 excluding the effect of 2018 adjustments (Unaudited) In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Ful
Slide 15: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment for the quarter ended September 30, 2019 (Unaudited) Actual Q3 Net Sales Growth Organic Currency Acq./Div. Total nVent (0.9%) (1.2%) 1.4% (0.7%) Enclosure