Vertiv Holdings, Llc · NYSE:VRT
Vertiv — Q1 2021 Earnings Presentation
23 slides from Vertiv's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Results
First Quarter 2021 Results April 28, 2021 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 2021 key messages
First quarter 2021 key messages Demand strong with first quarter 2021 net sales up 22.4% and orders up 21.1% from first quarter 2020 First quarter adjusted operating profit of $112M up $92M (~450%) and adjusted operating margin up 790 bps from first quarter 2020 First quarter free cash flow improves
Slide 4: Market environment
Market environment Vertiv SEGMENT Sales AMERICAS APAC EMEA Exposure1 Jan-21 Apr-21 Jan-21 Apr-21 Jan-21 Apr-21 CLOUD / HYPERSCALE ~20% COLOCATION ENTERPRISE / ~50% SMALL & MEDIUM BUSINESS COMMUNICATION NETWORKS ~20% COMMERCIAL & INDUSTRIAL ~10% Note: 1Sales Revenue FY2020 estimated by customer segme
Slide 5: Demand and supply update
Demand and supply update CUSTOMER DEMAND PRODUCTION & SUPPLY CHAIN • Overall market demand remains robust. First quarter • COVID continues to have slight impact on operations orders up 21% compared to same period last year. ➢ Hot spot areas move around, with India currently • Continued strength in c
Slide 6: New product launch highlights
New product launch highlights THREE-PHASE UPS THERMAL MANAGEMENT • Integrated solution including Grid Interactive UPS • High-Density immersion cooling for high performance with controller and battery storage computing applications • Provides grid balancing services through fast • Cooling up to 200kW
Slide 7: First quarter 2021 financial results
First quarter 2021 financial results $Millions Net Sales Adj. Operating Profit Adj. Operating Margin Adjusted EPS Free Cash Flow Up 22.4% Up ~450% Up 790 bps Up $0.86/share Up $246M Organic +19.5% 0.21 43 10.2% (203) 112 (0.65) 1,098 897 2.3% 20 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 2020 1Q 2021 1Q 202
Slide 8: First quarter 2021 segment results
First quarter 2021 segment results $Millions Americas ➢ Sales growth driven by hyperscale demand of critical Net sales infrastructure and solutions products ➢ Sales leverage, restructuring programs and other fixed Up 7.5% Up 59.6% Up 15.9% cost reductions drive higher adjusted operating margin Organ
Slide 9: First quarter 2021 free cash flow & liquidity
First quarter 2021 free cash flow & liquidity $Millions 20 43 • Liquidity of $1,107M at quarter end 10 ➢ 2.3x net leverage 24 21 • Announced redemption of 23.0M public warrants in December 2020 ➢ Received proceeds of $157M 79 in December on issuance of 13.6M shares ➢ Received additional proceeds of
Slide 10: Change in warrants accounting
Change in warrants accounting ➢ Based upon recent SEC guidance regarding the accounting for warrants at SPACs, restating 2020 financial statements to account for public and private warrants using liability (variable accounting) vs. equity (fixed accounting) treatment. See our press release issued Ap
Slide 11: Second quarter 2021 financial guidance
Second quarter 2021 financial guidance $Millions; midpoint of guidance range unless otherwise specified Net Sales Adj. Operating Profit Adj. Operating Margin Adjusted EPS Up 20% Up 21% Up 10 bps Up $0.07 Organic +17% 1,210 $0.23 125 1,006 10.3% 10.2% 103 $0.16 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2020
Slide 12: Full year 2021 financial guidance
Full year 2021 financial guidance $Millions; midpoint of guidance range unless otherwise specified Net Sales Adj. Operating Profit Adj. Operating Margin Adjusted EPS Free Cash Flow Up 12% vs. 2020 Up 74% vs. 2020 Up 430 bps vs. 2020 Up $1.26 vs. 2020 Up $137M vs. 2020 (+10% organic) Up $20M vs. prio
Slide 13: Full year guidance bridge to prior guidance
Full year guidance bridge to prior guidance $Millions • Incremental volume converting at a rate lower than our average contribution margin due (25) 595 to product mix and higher marginal 35 10 manufacturing costs • Supply challenges 575 driving some incremental short-term commodity and freight headw
Slide 14: First quarter 2021 key messages
First quarter 2021 key messages Demand strong with first quarter 2021 net sales up 22.4% and orders up 21.1% from first quarter 2020 First quarter adjusted operating profit of $112M up $92M (~450%) and adjusted operating margin up 790 bps from first quarter 2020 First quarter free cash flow improves
Slide 15: Non-GAAP financial reconciliations
Non-GAAP financial reconciliations
Slide 16: Non-GAAP financial measures - first quarter
Non-GAAP financial measures - first quarter Reconciliation of segment operating profit (loss) to operating profit (loss) Reconciliation from operating profit (loss) margin to adjusted operating profit (loss) margin ($M | 1ST QUARTER) 1Q21 1Q20 ($M | 1ST QUARTER) 1Q21 1Q20 D Americas $126.4 $91.5 Net
Slide 17: Non-GAAP financial measures – first quarter continued
Non-GAAP financial measures – first quarter continued Reconciliation of GAAP diluted EPS to Non-GAAP adjusted diluted EPS Loss on Operating profit Interest extinguishment Change in Income tax Net income ($M, except EPS | 1st QUARTER 2021) (loss) expense, net of debt warrant liability expense (loss)
Slide 18: Non-GAAP financial measures – second quarter guidance
Non-GAAP financial measures – second quarter guidance Second quarter 2021 reflects midpoint of guidance range Reconciliation of GAAP diluted EPS to Non-GAAP adjusted diluted EPS Operating profit Interest Change in Income tax ($M, except EPS | 2nd QUARTER 2021(3)) (loss) expense, net warrant liabilit
Slide 19: Non-GAAP financial measures – full year guidance
Non-GAAP financial measures – full year guidance Full year 2021 at midpoint of guidance range Reconciliation of GAAP diluted EPS to Non-GAAP adjusted diluted EPS Loss on Operating profit Interest extinguishment Change in Income tax Net income ($M, except EPS | FULL YEAR 2021(3)) (loss) expense, net
Slide 20: Non-GAAP financial measures – third and fourth quarter 2020
Non-GAAP financial measures – third and fourth quarter 2020 Reconciliation of GAAP diluted EPS to Non-GAAP adjusted diluted EPS Loss on Operating profit Interest extinguishment Change in Income tax Net income ($M, except EPS | 3rd QUARTER 2020) (loss) expense, net of debt warrant liability expense (
Slide 21: Adjusted operating profit bridge: Full year 2021 guidance
Adjusted operating profit bridge: Full year 2021 guidance $Millions 20 36 (65) 10 8 595 (40) 170 21 456 92 342 Operating margin % 7.8% 10.4% 12.1% FY 2020 Restructuring SPAC FY 2020 Organic Contribution FX Net restruct. Growth 2020 Other FY 2021 adjusted reserve and transaction pro-forma volume marg
Slide 22: Adjusted operating profit bridge: Prior guidance (revised presentation)
Adjusted operating profit bridge: Prior guidance (revised presentation – see notes) $Millions – Revised presentation to be consistent with go-forward adjusted operating profit analyses 20 36 (65) 40 (40) 8 575 120 21 456 92 342 Operating margin % 7.8% 10.4% 12.0% FY 2020 Restructuring SPAC FY 2020 O
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