Slide 1: nVent Third Quarter 2022 Earnings Presentation
nVent Third Quarter 2022 Earnings Presentation October 28, 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 Q3 sales of $745M, up 16%; strong adjusted EPS of $0.66, up 25% ▪ Sixth consecutive quarter of 20% or more organic sales growth ▪ Double-digit organic sales growth across all segments with volume and price contribution ▪ Another quarter of solid execution with sequential and ye
Slide 4: Q3 2022 Summary
Q3 2022 Summary ▪ Sales of $745 million, up 16% and 20% organically ▪ Segment income of $144 million, up 22%; ROS of 19.3%, up 90 bps year-over-year Q3 2022 ▪ Adjusted EPS of $0.66, up 25% ▪ Free cash flow generation of $126 million, up 17% year-over-year ▪ Organic sales up double-digits across all
Slide 5: Q3 2022 nVent Performance
Q3 2022 nVent Performance Sales ($M) Financial Highlights (YoY) $99 $0 $745 $33 ▪ Sales up 16%, organically up 20% $643 $(30) - Volume added 5 points and price added 15 points to growth - FX headwind of 4 points +16% YoY ▪ Price offset total inflation ~5 pts ~15 pts 0 pts ~(4)pts ▪ Segment income up
Slide 6: Q3 2022 Segment Performance
Q3 2022 Segment Performance ($M) Sales Segment Income Commentary Strong double-digit sales growth across all verticals, led by Infrastructure Enclosures $388 $72 Volume and price contributed to sales growth Up 16% Up 27% Up 20% organic ROS 18.5% (+170bps) Orders up double digits Sequential a
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,093 Maturity Q3 YTD 2022 2022 $500 @ 2028 $800 73% Fixed Net Income $ 93 $ 241 $300 @ 2031 Amortization 18 53 Subtotal $ 111 $ 294 $293 27% Variable 2026 Depreciation 11 33 Q3 ‘22 Weighted Average Rate ~4% Capital Expenditures (10) (31)
Slide 8: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Cash M&A Leverage the Business to Shareholders ▪ Net debt to adjusted ▪ Expect full-year capex ▪ Acquisitions remain a ▪ Returned $96 million in EBITDA ratio at 1.7X of ~$50M top priority cash to shareholders Q3 year-to-date ▪ Target of 2.0X to 2.5
Slide 9: 2022 nVent Outlook
2022 nVent Outlook Total nVent Expected Drivers Guidance as of Updated Guidance 07/29/2022 ▪ Strong order trends and backlog ▪ Supply chain challenges persist Up 14% to 16% Up 16% to 17% Sales Up 15% to 17% organic Up 18% to 19% organic ▪ Strong price realization to help offset inflation ▪ Investmen
Slide 10: Q4 2022 nVent Outlook
Q4 2022 nVent Outlook Q4 ’22 Q4 ’21 Other Items Reported sales Up 4% to 6% $669M Net interest expense ~$9M Organic sales Up 9% to 11% 24% Tax rate 17% to 18% EPS (reported) $0.47 to $0.49 $0.39 Shares ~169M EPS (adjusted) $0.56 to $0.58 $0.50 Expected Drivers ▪ Robust backlog and orders ▪ Continued
Slide 11: Building a More Sustainable and Electrified World
Building a More Sustainable and Electrified World We’re building a more sustainable and electrified world Investing in Sustainability and Macro Trends Strong Value Propositions Electrification • Energy efficiency Electrification of Everything • Resiliency and protection New Product Sustainability •
Slide 12: Summary
Summary ▪ Outstanding quarter with sales and adjusted EPS exceeding guidance ▪ Expect another year of double- digit sales and EPS growth ▪ Well positioned with sustainability and the electrification of everything Our future is bright Q3 ’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 nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2022 excluding the effect of adjustments (Unaudited) Actual Forecast (1) In millions, except per-share data First Quarter Second Quarter Third Quarter Fo
Slide 15: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2021 excluding the effect of adjustments (Unaudited) In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Full Yea
Slide 16: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q3 ’22 Earnings Presentation 16