Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q2 2021 Earnings Presentation
17 slides from Nvent Electric's earnings presentation, Aug 3, 2021
Slide 1: nVent Second Quarter 2021 Earnings Presentation
nVent Second Quarter 2021 Earnings Presentation August 3, 2021 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: Executive Summary
Executive Summary We are a leader in connection and protection Safety and well-being of our employees remains our top priority Broad-based growth and strong execution - Sales and earnings exceeded guidance - Organic sales up 29% over last year; all segments above 2019 sales - Q2 ROS of 18.3%, up
Slide 4: Q2 2021 Summary
Q2 2021 Summary Sales of $601 million, up 34% and 29% organically ROS of 18.3%, up 300bps with incrementals of 27% Q2 2021 Adjusted EPS of $0.50, up 72% year-over-year Generated free cash flow of $85 million, greater than 100% conversion Enclosures delivered strong results; sales increased
Slide 5: Q2 2021 nVent Performance
Q2 2021 nVent Performance Sales ($M) Financial Highlights (YoY) $26 $4 $21 $601 Sales up 34%, Organic up 29% $103 $447 - Volume added 23 points of growth +34% YoY - Price added 6 points of growth Price plus productivity helped offset inflation ~23 pts ~6 pts ~1 pt ~4 pts Segment Income up 61%
Slide 6: Q2 2021 Segment Performance
Q2 2021 Segment Performance ($M) Sales Segment Income Commentary Strong global volume and operational performance Enclosures $300 $54 Industrial growth accelerated Up 37% Up 90% Price + productivity offset inflation Up 31% organic ROS 17.9% (+500bps) Closed two acquisitions: CIS Global and V
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,108 Maturity Q2 YTD 2021 2021 $800 $300 @ 2023 Net Income $ 66 $ 132 72% Fixed $500 @ 2028 Amortization 16 32 Subtotal $ 82 $ 164 $308 28% Variable 2023 Depreciation 10 20 Q2 ‘21 Weighted Average Rate ~3.5% Capital Expenditures (8) (18)
Slide 8: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Excess Cash M&A Leverage the Business to Shareholders Net debt to adjusted Expect full-year capex of Bolt-on acquisitions remain Maintain competitive EBITDA ratio at 2.3X $40 to $45M in 2021 a top priority dividend ‒ CIS Global: Strengthens
Slide 9: 2021 nVent Outlook
2021 nVent Outlook Total nVent Key Drivers Guidance as of Updated Guidance Recovery continues 04/29/2021 Strong order trends across the portfolio Up 8% to 11% Up 15% to 18% Sales Higher inflation and the non-repeat of 2020 cost actions Up 5% to 8% organic Up 10% to 13% organic Expect strong
Slide 10: Q3 2021 nVent Outlook
Q3 2021 nVent Outlook Q3 ‘21 Q3 ‘20 Other Items Reported Sales Up 16% to 20% $509M Tax Rate 17% to 18% Organic Sales Up 10% to 13% Net Interest Expense ~$10M EPS (reported) $0.36 to $0.39 $(0.82) Shares ~170M EPS (adjusted) $0.45 to $0.48 $0.45 Key Drivers Recovery continues with broad-based growt
Slide 11: Acquisition of CIS Global
Acquisition of CIS Global An industry leader in intelligent Strategic fit power distribution units • Strengthens our Data Centers and Networking Solutions (DNS) offering • Extends protection capabilities from heat management to power management An industry leader in precision • Drives DNS vertical t
Slide 12: 2020 Social Responsibility Report
2020 Social Responsibility Report People Products Planet Improved our employee Introduced new Launched record number of new engagement score sustainability performance products management system Increased Employee Resource Featured products in three key Group membership Entered into firs
Slide 13: Strong Foundation – Bright Growth Prospects
Strong Foundation – Bright Growth Prospects Electrification of Everything and the need for labor-saving solutions position us for growth Strong brands with leading positions Top-tier margins with runway Strong cash generation and capital deployment focused on growth and value creation High
Slide 14: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 14 14
Slide 15: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation Q2 ’21 Earnings Presentation 15
Slide 16: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation Q2 ’21 Earnings Presentation 16
Slide 17: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation Q2 ’21 Earnings Presentation 17