Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q1 2022 Earnings Presentation
16 slides from Nvent Electric's earnings presentation, Apr 29, 2022
Slide 1: nVent First Quarter 2022 Earnings Presentation
nVent First Quarter 2022 Earnings Presentation April 29, 2022 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: Key Messages
Key Messages ▪ Record Q1 sales of $695M, up 27%; strong adjusted EPS of $0.50, up 16% ▪ Broad-based sales and orders growth across all segments ▪ Continued strong execution in challenging inflationary and supply chain environment ▪ Raising full-year sales and adjusted EPS guidance Strong start to 20
Slide 4: Q1 2022 Summary
Q1 2022 Summary ▪ Sales of $695 million, up 27% and 24% organically ▪ Segment income of $110 million, up 13%; ROS of 15.9%, down 180 bps Q1 2022 ▪ Adjusted EPS of $0.50, up 16% ▪ Free cash flow usage of $3 million, in line with expectations ▪ Broad-based growth, >20% organic sales growth in all segm
Slide 5: Q1 2022 nVent Performance
Q1 2022 nVent Performance Sales ($M) Financial Highlights (YoY) $63 $24 $695 $72 ▪ Sales up 27%, organically up 24% $549 $(13) - Volume added 13 points and price added 11 points to growth +27% YoY - Acquisitions added 5 points ▪ Price nearly offset total inflation ~13 pts ~11 pts ~5 pts ~(2) pts ▪ S
Slide 6: Q1 2022 Segment Performance
Q1 2022 Segment Performance ($M) Sales Segment Income Commentary Strong sales growth across all verticals Enclosures $359 $50 Double-digit sales growth in all regions Up 30% Up 3% Acquisitions contributed 9 points to sales growth Up 23% organic ROS 14.0% (-360bps) ─ Higher inflation and supply
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,052 Maturity Q1 2022 $500 @ 2028 $800 76% Fixed Net Income $ 68 $300 @ 2031 Amortization 18 Subtotal $ 86 $252 24% Variable 2026 Depreciation 11 Q1 ‘22 Weighted Average Rate ~3.3% Capital Expenditures (11) Note: Does not include $51 of
Slide 8: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Cash M&A Leverage the Business to Shareholders ▪ Net debt to adjusted ▪ Full-year capex of ▪ Acquisitions remain a ▪ Maintain competitive EBITDA ratio at 2.0X $50M to $55M in 2022 top priority dividend; $29M in Q1 payments ▪ Target of 2.0X to 2.5X
Slide 9: 2022 nVent Outlook
2022 nVent Outlook Total nVent Key Drivers Guidance as of Updated Guidance 02/08/2022 ▪ Strong order trends and backlog Up 6% to 10% Up 11% to 13% ▪ Supply chain challenges impacting margins Sales Up 6% to 9% organic Up 11% to 13% organic ▪ Strong price realization to help offset inflation ▪ Continu
Slide 10: Q2 2022 nVent Outlook
Q2 2022 nVent Outlook Q2 ’22 Q2 ’21 Other Items Reported sales Up 13% to 15% $601M Tax rate 17% to 18% Organic sales Up 12% to 14% 29% Net interest expense ~$8M EPS (reported) $0.43 to $0.45 $0.39 Shares ~169M EPS (adjusted) $0.52 to $0.54 $0.50 Expected Drivers ▪ Continued broad-based sales growth
Slide 11: Electrification of Everything
Electrification of Everything Data Solutions Power Utilities/Renewables CAGR*: >20% CAGR*: LDD% Main Mega Trends Power Distribution Pipe Freeze Wind Turbine Enclosures Protection Blade Protection Units** Technology, Connectivity & Sustainability Theft Deterrent Precision and Liquid Cable Solar Solut
Slide 12: Summary
Summary ▪ Strong start to 2022 ▪ Managing through a challenging, inflationary environment ▪ Expecting double-digit full-year sales and adjusted EPS growth ▪ Well-positioned for the electrification of everything Our future is bright Q1 ’22 Earnings Presentation 12
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 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q1 ’22 Earnings Presentation 14
Slide 15: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation Q1 ’22 Earnings Presentation 15
Slide 16: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q1 ’22 Earnings Presentation 16