Vertiv Holdings, Llc · NYSE:VRT
Vertiv — Q1 2022 Earnings Presentation
21 slides from Vertiv's earnings presentation, Apr 27, 2022
Slide 1: First Quarter 2022 Results
First Quarter 2022 Results April 27, 2022 Architects of Continuity™
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. This includes, without l
Slide 3: First quarter 2022 key messages
First quarter 2022 key messages First quarter organic sales flat to prior year as supply chain constraints limited customer deliveries. Underlying market demand remains strong with first quarter orders up 34% notwithstanding impact of aggressive price actions. First quarter adjusted operating profit
Slide 4: Market Environment
Market Environment SEGMENT AMERICAS APAC EMEA Feb-22 April-22 Feb-22 April-22 Feb-22 April-22 CLOUD / HYPERSCALE COLOCATION + + + + ENTERPRISE / SMALL & MEDIUM BUSINESS COMMUNICATION NETWORKS + COMMERCIAL & INDUSTRIAL Orders remain strong but moderating with price actions and supply constraints Conf
Slide 5: Customer demand and supply chain update
Customer demand and supply chain update CUSTOMER DEMAND & PRICING UPDATE SUPPLY CHAIN & INFLATION UPDATE • Overall market demand remains robust. First quarter • Supply chain challenges show no improvement in the orders up 34% compared to same period last year. first quarter, and we expect continued
Slide 6: First quarter 2022 financial results
First quarter 2022 financial results $Millions Net Sales Adj. Operating Profit Adj. Operating Margin Adj. Diluted EPS Free Cash Flow Up 5.3% Down $99M Down 910 bps Down $0.29 Down $193M Organic up 0.4% 43 $0.21 1,156 10.2% 1,098 (150) 112 1.1% ($0.08) 13 Q1 2021 Q1 2022 Q1 2021 Q1 2022 Q1 2021 Q1 20
Slide 7: First quarter 2022 segment results
First quarter 2022 segment results Americas $Millions Organic growth driven by price realization with volume Net sales relatively flat. E&I added ~$17M. Operating margins unfavorable due largely to materials Up 6.7% Down (6.9%) Up 20.5% and freight inflation outpacing price realization Organic +
Slide 8: Second quarter 2022 financial guidance
Second quarter 2022 financial guidance $Millions; midpoint of guidance range unless otherwise specified Net Sales Adj. Operating Profit Adj. Operating Margin Adj. Diluted EPS Up 6% Down $44M - $64M Down 460 bps Down $0.21 Organic ~flat ~1,335 1,260 $0.31 10.6% 134 70 - 90 ~6.0% ~$0.10 Q2 2021 Q2 202
Slide 9: Full year 2022 financial guidance
Full year 2022 financial guidance $Millions; midpoint of guidance range unless otherwise specified Net Sales Adj. Operating Profit Adj. Operating Margin Adj. Diluted EPS Free Cash Flow Up 14% Up 11% Down 20 bps Down $0.04 Up $14M Organic +9% ~5,700 4,998 ~525 136 ~150 471 9.4% ~9.2% $0.76 ~$0.72 FY
Slide 10: 2022 financial guidance by quarter
2022 financial guidance by quarter $Millions; midpoint of guidance range unless otherwise specified Updated Guidance – Net Sales Updated Guidance – Organic Sales Growth from 2021 Volume (3%) (6%) +8% +7% (5%) +7% ~3,210 Pricing +4% +6% +9% +9% +5% +9% ~2,490 430 205 225 190 ~1,530 ~1,680 95 ~1,335 9
Slide 11: 2022 financial guidance by quarter
2022 financial guidance by quarter $Millions; midpoint of guidance range unless otherwise specified Updated Guidance - Adjusted Operating Profit Updated Guidance - Adjusted Operating Margin 14-15% 410-455 13-14% 230-255 12-13% 180-200 134 131 5-7% 112 94 70-90 3-4% 83-103 13 1% Q1 Q2 Q3 Q4 Q1 Q2 Q3
Slide 12: 2022 pricing and inflation guidance by quarter
2022 pricing and inflation guidance by quarter $Millions – year-over-year impact excluding E&I Updated Guidance • First quarter inflation was favorable to ~360 plan as new materials increases were ~130 lower than expected partially offset by ~110 ~270 higher than planned freight costs ~85 ~80 ~80 ~6
Slide 13: First quarter 2022 key messages
First quarter 2022 key messages First quarter organic sales flat to prior year as supply chain constraints limited customer deliveries. Underlying market demand remains strong with first quarter orders up 34% notwithstanding impact of aggressive price actions. First quarter adjusted operating profit
Slide 14: Non-GAAP financial reconciliations
Non-GAAP financial reconciliations
Slide 15: Non-GAAP financial measures – first quarter results
Non-GAAP financial measures – first quarter results Reconciliation of segment operating profit (loss) to operating profit (loss) and adjusted Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin operating profit (loss) ($M | 1st QUARTER) 1Q22 1Q21 ∆ ($M | 1st
Slide 16: Non-GAAP financial measures – first quarter results (cont.)
Non-GAAP financial measures – first quarter results (cont.) Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Loss on Operating profit Interest extinguishment Change in Income tax ($M, except EPS | 1st QUARTER 2022) (loss) expense,
Slide 17: Non-GAAP financial measures – 2022 guidance
Non-GAAP financial measures – 2022 guidance At midpoint of guidance range Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Operating profit Interest Change in Income tax ($M, except EPS | 2nd QUARTER 2022(1)) (loss) expense, net wa
Slide 18: Non-GAAP financial measures – 2022 guidance continued
Non-GAAP financial measures – 2022 guidance continued At midpoint of guidance range Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Operating profit Interest Income tax Net income ($M, except EPS | 3rd QUARTER 2022(1)) (loss) expe
Slide 19: Non-GAAP financial measures – 2022 guidance continued
Non-GAAP financial measures – 2022 guidance continued At midpoint of guidance range Reconciliation of diluted EPS to adjusted diluted EPS and operating profit (loss) to adjusted operating profit (loss) Operating profit Interest Change in Income tax Net income ($M, except EPS | 1st HALF 2022(1)) (los
Slide 20: Full year 2022 adjusted operating profit vs. 2021
Full year 2022 adjusted operating profit vs. 2021 $Millions; FY 2022 at midpoint of guidance • Pricing includes ~$40M actual, ~$155M in Q1 2022 backlog and ~$165M in expected book and ship orders 25 70 • E&I 2022 adjusted operating profit of ~$80M less ~$7M in 2021 (270) • Volume benefit of ~$75M hi
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