Vertiv Holdings, Llc · NYSE:VRT
Vertiv — Q1 2024 Earnings Presentation
23 slides from Vertiv's earnings presentation, Apr 24, 2024
Slide 1: First Quarter 2024 Results
6% VERTIV. First Quarter 2024 Results April 24, 2024
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements This presentation and other statements that Vertiv Holdings Co. (‘Company”) may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Ve
Slide 3: First quarter 2024 key messages
First quarter 2024 key messages Organic net sales up ~8% compared to first quarter 2023 driven by upper-single-digit growth in all three regions. Strong orders growth - up ~60%! from first quarter 2023 and up ~4%' from fourth quarter 2023. Book-to-bill ratio of ~1.5x for first quarter 2024. First qu
Slide 4: Customer demand and supply chain update
Customer demand and supply chain update CUSTOMER DEMAND & PRODUCTION CAPACITY + First quarter orders exceeded expectations, up ~60%' from first quarter 2023 and up ~4% sequentially from fourth quarter 2023. Book-to-bill ratio of ~1.5x. Good portion of first quarter orders support 2025+. * Backlog at
Slide 5: Power Train Products, Solutions, and Capacity Enable AI Infrastructure
Power Train Products, Solutions, and Capacity Enable Al Infrastructure Power Grid d " " Server Chip FACILITY/OUTDOOR ROOM/ROW POWER CONVERSION POWER SWITCHING BL CSR VER an AND DISTRIBUTION AND DISTRIBUTION pa TBO Gao GS L ut Key Medium-and Medium-and 3-Phase UPS/ Static Transfer Transformer/ Remote
Slide 6: First quarter 2024 financial results
First quarter 2024 financial results $Millions; deltas to midpoint of guidance range Adj. Operating Profit Adj. Operating Margin Adj. Diluted EPS Adj. Free Cash Flow Up ~$118M Organic up ~8% Up ~$39M vs. prior guidance Up ~$73M Up ~$39M vs. prior guidance Up ~370 bps Up ~210 bps vs. prior guidance 1
Slide 7: First quarter 2024 segment results
First quarter 2024 segment results $Millions Net sales Up 73% Up 6.2% Organic +7% Organic +9% 925 862 313 332 Americas APAC Adjusted operating margin 20.3% 16.9% 9.1% Adjusted 53% operating profit $146 $7 Americas APAC Three months ended Mar 31,2023 Ml Mar 31,2024 @% VERTIV. 012024 Earnings Note: se
Slide 8: Second quarter 2024 financial guidance
Second quarter 2024 financial guidance $Millions; midpoint of guidance range unless otherwise specified | Net Sales Adj. Operating Profit Adj. Operating Margin Adj. Diluted EPS Up ~$191M Up ~$74M Up ~240 bps Up ~$0.09 Organic up ~12% 251 1,734 145% $0.46 2.2023 2.2024 2 2028 02 2024 2.2023 2.2024 2.
Slide 9: Raising full-year guidance on higher organic sales growth and profitability expectations
Net Sales Adj. Operating Profit Adj. Operating Margin Adj. Diluted EPS1 Adj. Free Cash Flow • • + • + + + • • − • • − − − − Raising full-year guidance on higher organic sales growth and profitability expectations
Slide 10: Key takeaways
Key takeaways Exceeded guidance for first quarter sales and profitability, continuing momentum from strong finish to 2023. First quarter 2024 orders up 60%! vs. first quarter 2023 and 4%' vs. fourth quarter 2023. Book-to-bill ratio ~1.5x for the first quarter 2024. Strong orders pipeline supports bo
Slide 11: Non-GAAP financial reconciliations
Non-GAAP financial reconciliations 6% VERTIV. ights Reserved. 11
Slide 12: Reconciliation from operating profit margin to adjusted operating profit margin
Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin D Reconciliation of Net cash provided by (used for) operating activities to Adjusted Free Cash Flow Net Sales and Organic Net Sales Change by Segment(1) D D Source: Management estimates
Slide 13: Non-GAAP reconciliation
Source: Management estimates
Slide 14: Non-GAAP reconciliation
Source: Management estimates
Slide 15: Non-GAAP reconciliation
Source: Management estimates
Slide 16: Net Sales
Net Sales(1) Source: Management estimates
Slide 17: Reconciliation from operating profit margin to adjusted operating profit margin
Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin Reconciliation of Net cash provided by (used for) operating activities to Adjusted Free Cash Flow Source: Management estimates
Slide 18: Net Sales and Organic Net Sales Change by Segment
Net Sales and Organic Net Sales Change by Segment (1) D D Source: Management estimates
Slide 19: Non-GAAP financial measures - organic net sales growth reconciliation
Non-GAAP financial measures - organic net sales growth reconciliation Reconciliation of change in net sales to organic change in net sales Organic Net Sales 4 Fx growth Organic A % (SM | QUARTER) Americas: $627 $c.5) se12 71% Asia Pacific: 193 93 286 91% EMEA: 36.0 2.2) 33.8 9.8% Total: $118.0 $5.6
Slide 20: Key FX modeling assumptions
Key FX modeling assumptions S$Millions unless otherwise specified 2Q-4Q Assumption CNY / USD USD / EUR USD / GBP INR / USD 1-mo SOFR 7.22 $1.08 $1.26 83.40 5.32% @% VERTIV. 012024 Earnings FX translation impact! 2024 vs. 2023 Qi Sales ~() Adj. OP ~2 Q2 ~(20) ~(2) 2H ~(20) ~@) FY ~(45) ~@) 1) Exclude
Slide 21: Share count assumptions
Share count assumptions Millions of shares unless otherwise specified * First quarter 2024 diluted share count (~379M) is lower than prior guidance (~392M) due to: > Since there is a GAAP net loss in the first quarter of 2024 - primarily driven by the change in fair value of warrant liabilities, pot
Slide 22: Income (loss) before income taxes (GAAP) and warrant liabilities
• Guidance 1Q24 2Q24 FY24 Income (loss) before income taxes (GAAP) (13) 235 824 Change in fair value of warrant liabilities 177 - 177 Income (loss) before income taxes and 164 235 1,001 warrant liabilities Income tax expense (benefit) (GAAP) (7) 66 278 • Tax benefit from warrant liabilities in 1Q24
Slide 23: Vertiv
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