Nvent Electric Plc · NYSE:NVT
Nvent Electric — Shareholder Meeting (April 2024)
15 slides from Nvent Electric's shareholder meeting presentation, Apr 12, 2024
Slide 1: Spring 2024 nVent Shareholder Engagement
1 Spring 2024 nVent Shareholder Engagement
Slide 2: Caution Concerning Forward-Looking Statements
2 CAUTION CONCERNING FORWARD - LOOKING STATEMENTS This presentation contains statements that we believe to be “forward - looking statements” within the meaning of the Private Secur ities Litigation Reform Act of 1995. All statements, other than statements of historical fact are forward looking state
Slide 3: Outstanding year of performance with strong growth and execution
3 Outstanding year of performance with strong growth and execution 2023 Business Results ▪ Sales of $3.3 billion , up 12% and 3% organically; acquisitions added 9 points ▪ Operating Income of $587 million compared to $440 million in 2022 ▪ Adjusted EPS of $3.06 , up 28% ▪ Free Cash Flow of $465 mill
Slide 4: We are being recognized for our sustainability efforts
4 We are being recognized for our sustainability efforts Sustainability Report Highlights New 2023 Recognitions ▪ Increased representation of women in management globally by 4% ▪ Achieved our goal to make our product environmental data 100% digitally accessible to customers ahead of schedule ▪ Reach
Slide 5: Environmental, Social and Governance Goals Progress
5 *The baseline year for our employee diversity goals is 2020, and the baseline year for our Planet and employee safety goals i s 2 019. Progress shown from baseline year through December 31, 2023. **In - scope product environmental data include RoHS, REACH, Prop 65, TSCA and Conflict Materials. ***
Slide 6: We value investor feedback and will continue to seek it through engagement initiatives
6 We value investor feedback and will continue to seek it through engagement initiatives *nVent outstanding shares and shareholder ownership are as of the time of fall outreach, which reflects June 30, 2023 data. Shareholder ownership is based on publicly disclosed ownership. Shareholder Engagement
Slide 7: Experienced, Diverse Board
7 Experienced, Diverse Board 2024 Director Nominees (1) Our director nominees’ average tenure is calculated by full years of completed service based on date of initial appointment or election to our Board. * Including disability status, status as a veteran or spouse of a veteran, and LGBTQ+ status.
Slide 8: Good governance sets the foundation for success
8 Good governance sets the foundation for success Governance Practices x All Directors are independent, except our Chair x I ndependent Lead Director with robust responsibilities set forth in our Corporate Governance Principles x Code of Ethics and annual ethics training x Stock ownership requiremen
Slide 9: 2023 Executive Compensation Structure
9 2023 Executive Compensation Structure 2023 Target Direct Compensation Mix 13% 17% 70% 26% 22% 52% CEO Other NEOs Base Salary Annual Incentives Long - Term Incentives 87 % at risk 74% at risk Annual Incentive Plan (“MIP”) Long - Term Incentive Plan 30% 30% 25% Revenue Adjusted EPS Free Cash Flow 15
Slide 10: Pay-for-Performance Alignment
10 -50% 0% 50% 100% 150% Strong correlation between NEO pay and performance delivered to our shareholders Pay - for - Performance Alignment 2021 Payouts 188% MIP 50% PSU 2022 Payouts 156% MIP 142% PSU 2023 Payouts 139% MIP 200% PSU NVT TSR 75 th Percentile 50 th Percentile 25 th Percentile S&P 400 I
Slide 11: Closing Summary
11 2023 was a year of exceptional performance and value creation Closing Summary ▪ Record sales, margins and cash flow ▪ 81 st percentile of the S&P 400 Industrials in total shareholder return ▪ Significant progress on our ESG priorities ▪ Strong correlation between pay and performance while deliver
Slide 12: Appendix: GAAP to Non-GAAP Measurements & Reconciliations
12 12 Appendix GAAP to Non - GAAP Measurements & Reconciliations
Slide 13: Reported to Adjusted 2023 Reconciliation
13 Reported to Adjusted 2023 Reconciliation
Slide 14: Reported to Adjusted 2022 Reconciliation
14 Reported to Adjusted 2022 Reconciliation
Slide 15: Organic Sales Growth and Free Cash Flow Reconciliation
15 Organic Sales Growth and Free Cash Flow Reconciliation