Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q4 2022 Earnings Presentation
19 slides from Nvent Electric's earnings presentation, Feb 7, 2023
Slide 1: nVent Fourth Quarter and Full-Year 2022 Earnings Presentation
nVent Fourth Quarter and Full-Year 2022 Earnings Presentation February 7, 2023 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 ▪ Exceeded Q4 sales and adjusted EPS guidance with robust free cash flow ▪ Seventh consecutive quarter of double-digit organic sales growth ▪ Delivered 18% sales growth and 22% adjusted EPS growth for the full year 2022 ▪ Generated record full-year free cash flow of $351 million ▪ Well
Slide 4: Q4 and Full-Year 2022 Summary
Q4 and Full-Year 2022 Summary ▪ Sales of $742 million, up 11% and 15% organically ▪ Segment income of $144 million, up 31%; ROS of 19.4%, up 290 bps year-over-year Q4 2022 ▪ Adjusted EPS of $0.66, up 32% ▪ Free cash flow generation of $180 million, up 77% year-over-year ▪ Sales of $2.9 billion, up 1
Slide 5: Q4 2022 nVent Performance
Q4 2022 nVent Performance Sales ($M) Financial Highlights (YoY) $98 $0 $742 $669 $1 ▪ Sales up 11%, organically up 15% $(26) - Price added 15 points to growth - FX headwind of 4 points +11% YoY ▪ Price offset total inflation +0 pts 15 pts 0 pts (4)pts ▪ Segment income up 31% Q4 ’21 Volume Price Acq.
Slide 6: Q4 2022 Segment Performance
Q4 2022 Segment Performance ($M) Sales Segment Income Commentary Strong organic sales growth across all verticals, led by Industrial Enclosures $376 $72 Robust sales growth in North America and Europe Up 13% Up 67% Up 17% organic ROS 19.2% (+620bps) Volume and price contributed to sales growth
Slide 7: Full-Year 2022 nVent Performance
Full-Year 2022 nVent Performance Sales ($M) Financial Highlights (YoY) $333 $47 $2,909 ▪ Sales up 18%, organically up 20% $2,462 $158 $(91) - Volume added 6 points and price added 14 points to growth - All segments grew double digits organically +18% - FX headwind of 4 points YoY 6 pts 14 pts ▪ Pric
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,089 Maturity Q4 YTD 2022 2022 $500 @ 2028 $800 73% Fixed Net Income $ 159 $ 400 $300 @ 2031 Amortization 18 71 Subtotal $ 177 $ 471 $289 27% Variable 2026 Depreciation 11 43 Q4 ‘22 Weighted Average Rate ~4% Capital Expenditures (15) (46
Slide 9: 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 $46 ▪ Acquisitions remain a ▪ Maintain a competitive EBITDA ratio at 1.4X million in 2022 top priority dividend ▪ Target of 2.0X to 2.5X ▪ Investments in new
Slide 10: 2023 nVent Outlook
2023 nVent Outlook Total nVent Expected Drivers Guidance ▪ Secular tailwinds continue in electrification ▪ Strong backlog Up 3% to 5% Sales Up 4% to 6% organic ▪ Strong price realization offsetting inflation ▪ Investments in capacity, new products and digital Adjusted $2.51 to $2.61 EPS Up 5% to 9%
Slide 11: Q1 2023 nVent Outlook
Q1 2023 nVent Outlook Q1 ’23 Q1 ’22 Other Items Reported sales Up 3% to 5% $695M Net interest expense ~$10M Organic sales Up 5% to 7% 24% Tax rate 18.0% to 18.5% EPS (reported) $0.47 to $0.49 $0.40 Shares ~168M EPS (adjusted) $0.56 to $0.58 $0.50 Expected Drivers ▪ Robust backlog ▪ Continued strong
Slide 12: nVent Recognition Highlights
nVent Recognition Highlights Segment Awards and Recognition 2022 nVent Awards Border States Electric Operational and Enclosures Technological Excellence Award IMARK Platinum Recognition for EFS Strong Support and Partnership Dow Chemical Best-in-Class Thermal Safety and Excellence Award At nVent, ou
Slide 13: 2023 Investor Day: March 7, 2023
2023 Investor Day: March 7, 2023 Q4 ’22 Earnings Presentation 13
Slide 14: Summary
Summary ▪ 2022 was another outstanding year for nVent ▪ Expect strong sales growth and margin expansion in 2023 ▪ Well positioned with electrification, sustainability and digitalization trends Our future is bright Q4 ’22 Earnings Presentation 14
Slide 15: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 15 15
Slide 16: Reported to Adjusted 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q4 ’22 Earnings Presentation 16
Slide 17: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation Q4 ’22 Earnings Presentation 17
Slide 18: Reported to Adjusted 2023 Reconciliation
Reported to Adjusted 2023 Reconciliation Q4 ’22 Earnings Presentation 18
Slide 19: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q4 ’22 Earnings Presentation 19