Nvent Electric Plc · NYSE:NVT

Nvent Electric — Investor Day (March 2021)

81 slides from Nvent Electric's investor day presentation, Mar 3, 2021

1. Slide 1: 2021 nVent Investor and Analyst Meeting

   2021 nVent Investor and Analyst Meeting Introduction J.C. Weigelt, VP, Investors Relations March 3, 2021 1 2021 nVent Investor and Analyst Meeting: March 3, 2021

2. Slide 2: Welcome

   Welcome J.C. Weigelt Vice President, Investor Relations 2 2 2021 nVent Investor and Analyst Meeting: March 3, 2021

3. Slide 3: Agenda

   Agenda Time (CST) Speaker Title 8:00 am J.C. Weigelt VP, Investor Relations 8:05 am Beth Wozniak Chief Executive Officer 8:35 am Aravind Padmanabhan EVP, Chief Technology Officer 8:45 am Betty Noonan EVP, Chief Growth Officer 8:55 am Joe Ruzynski President, Enclosures 9:10 am Robert van der Kolk Pre

4. Slide 4: 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

5. Slide 5: Logistics

   Logistics All Virtual Meeting  Slides are posted to investor relations section of nVent.com  Question & Answer session will feature questions from covering analysts and offer submission of additional questions in text box on the right side of your screen  Meeting will be archived on investor rela

6. Slide 6: nVent Overview

   2021 nVent Investor and Analyst Meeting nVent Overview Beth Wozniak, Chief Executive Officer March 3, 2021 6 2021 nVent Investor and Analyst Meeting: March 3, 2021

7. Slide 7: nVent Overview

   nVent Overview Company Characteristics 2020 Financials  Leader in Connection and Protection  Industry leading positions and strong brands $2.0B 17.4%  Attractive margin profile Revenues ROS  Strong free cash flow generation Segments Verticals Geographies 24% 1% 48% 8% 8% Thermal Energy 42% ROW M

8. Slide 8: We are a Leader in Connection and Protection

   We are a Leader in Connection and Protection Our businesses go back to 1900 Premier brands recognized for innovation, Leading brands in connection and protection quality and reliability Mission Critical solutions provider Continuous history of innovation Deep product and application expertise Global

9. Slide 9: Our Mission

   Our Mission At nVent, we believe that safer systems ensure a more secure world. We connect and protect our customers with inventive electrical solutions. 9 2021 nVent Investor and Analyst Meeting: March 3, 2021

10. Slide 10: Value Proposition

    Value Proposition Customer Productivity & Total Mission Critical Solutions Avoid High Cost of Failure Cost of Ownership Meet stringent Global regulatory Our End-Users downtime can cost Reduced facilities operating costs standards and certifications up to US$1M per hour by ~75%* Meet stringent regula

11. Slide 11: Our Strategy

    Our Strategy One nVent STRATEGIC DRIVERS High New Global Growth Growth Verticals Products & Innovation Grow Acquisitions and Partnerships Productivity and Transform Digital Acceleration Working Capital Velocity Focused on growth and performance to drive value 11 2021 nVent Investor and Analyst Meeti

12. Slide 12: Connecting and Protecting The Future of Electrification

    Connecting and Protecting The Future of Electrification Industry Information Smart E-Mobility Smart buildings: Data and Networking Electric Transportation Automation & Communication infrastructure charging stations Solutions Rail Power Utilities Our products and solutions 12 are critical for the fut

13. Slide 13: Electrification of Everything

    Electrification of Everything Main Mega Trends… …drive Investment …and we provide solutions Power Utilities  Enclosures Technology  Advanced cooling systems Data Centers & Connectivity Sustainability  Data racks, security, remote access (IoT) Telecom / 5G  Low voltage power connections Renewable

14. Slide 14: Where We Play

    Where We Play Main Verticals Industrial 42% Comm/ Resi 31% Infrastructure 19% Energy 8%  Aerospace  Education  Datacom nVent position in each sub vertical  Automotive  Healthcare  Telecom  Food & Beverage  Offices  General Electronics  Residential 5-10%  PetChem  Defense  Hospitality 

15. Slide 15: Infrastructure Main Opportunities

    Infrastructure Main Opportunities Telecom / 5G Power Utilities $75M Sales $2.5B Total Opportunity $50M Sales $3B Total Opportunity Lightning Solar Grounding and Wind Turbine Lightning Power Connections Cooling Protection Power Connections Blade Protection Protection AC & DC CADWELD Power Exothermic

16. Slide 16: Data Centers and Networking Solutions

    Data Centers and Networking Solutions $135M $5B 5G/Edge Lightning Protection Energy Energy Cable Rack Power Sales Total Opportunity Infrastructure Connectivity Management Power Connections Monitoring >10% CAGR for Data Center cabling needs Surge Protection Precision and Liquid >10% CAGR for Data Cen

17. Slide 17: Acquisitions and Strategic Partnerships

    Acquisitions and Strategic Partnerships nVent Focus Eldon and WBT Acquisitions Strategic Partnership We are a $2B player in a $60B* Eldon  Complements nVent’s liquid cooling highly fragmented space and our product offering  Accelerated nVent’s global focus is on growth with innovative,  Provides

18. Slide 18: Spark Management System

    Spark Management System People are at the core of Spark, positively impacting our business and growing People their careers Growth is the foundation of Spark, driving shareholder, customer and employee Growth value Lean Lean is the relentless pursuit of eliminating waste and increasing velocity Digi

19. Slide 19: Social Responsibility

    Social Responsibility People Products Planet  Inclusion & Diversity  Eco friendly materials  Energy and water management  Engagement  Energy efficient and serviceable  Waste diversion  Safety design  Carbon footprint  Governance & business ethics  User safety 60% 45% nVent Board Women 97%

20. Slide 20: nVent: A High-Performance Electrical Company

    nVent: A High-Performance Electrical Company Why nVent? Driving Organic Growth Operational Excellence  Focused on high growth verticals such as Data Centers and  Spark Management System drives performance and a Networking Solutions, Power Utilities and 5G competitive advantage  Industry leading p

21. Slide 21: Summary

    Summary  The electrification of everything positions us well for growth  Our people, culture and Spark Management System are a differentiator  We have top tier margins and strong cash flow with runway  Our capital allocation is focused on growth  Our future is bright 21 2021 nVent Investor and

22. Slide 22: Digital and Technology

    2021 nVent Investor and Analyst Meeting Digital and Technology Aravind Padmanabhan, EVP, Chief Technology Officer March 3, 2021 22 2021 nVent Investor and Analyst Meeting: March 3, 2021

23. Slide 23: nVent Digital Transformation

    nVent Digital Transformation Digital Strategy Pillars Expected Multi-Year Impact Digitize Go-To-Market Data & Analytics Sales $20 - $40M+ Margin + 100 bps ROS Digitize Operations Connected Solutions (IoT) Working Capital $ Customer Journey Discovery and Configure, Evaluate Purchase Fulfill Receive

24. Slide 24: Deploying Foundational Digital Capabilities

    Deploying Foundational Digital Capabilities Agile Execution Platform Building Data as an Asset Blocks  Increased velocity of launches  Platform-based architectures  Enhanced data usage & quality  Incremental value realization  Reference architectures  faster  Enterprise data lake & analytics

25. Slide 25: New Product Introductions

    New Product Introductions 50+ products Long-term 40 products 15% vitality 16% vitality Targets R&D = 2.2% Sales R&D = 2.2% Sales 2020 2018 20% vitality 2021 R&D = ~3.0% Sales 2019 53 products 32 products 15% vitality Opportunity: 14% vitality R&D = 2.2% Sales Contribute ~ 1 pt Growth each year R&D =

26. Slide 26: nVent Software Continuum – From Discrete to Connected

    nVent Software Continuum – From Discrete to Connected Design & Configure Embedded Connect Analyze Specify & Build Run & Control Access & Manage Optimize & Predict Proprietary software tools that Software that runs inside nVent Software that connects our Software (proprietary algorithms) help enginee

27. Slide 27: Summary

    Summary  Making strong progress on the digital transformation roadmap  Agile and platforms are giving us velocity and scale  Record number of new product launches enabling nVent growth & increasing vitality 27 2021 nVent Investor and Analyst Meeting: March 3, 2021

28. Slide 28: Strategic Distribution Alliances

    2021 nVent Investor and Analyst Meeting Strategic Distribution Alliances Betty Noonan, EVP, Chief Growth Officer March 3, 2021 28 2021 nVent Investor and Analyst Meeting: March 3, 2021

29. Slide 29: One nVent Strategic Distribution Alliance Growth

    One nVent Strategic Distribution Alliance Growth Strengthen strategic distribution alliances Serviced 5 large North American and of nVent’s Total Global Electrical Distributors ~1/4 Revenue ~$1B Available Opportunity* Since Spin Aligned brands and sales to One nVent team Growth Initiative Performanc

30. Slide 30: Today and Future Strategy

    Today and Future Strategy One nVent strategy built a strong foundation that's enabling growth with strategic distribution alliances Today Future  Aligned teams driving growth 100+ +7-9%  Expanding strategic alliances New location Europe growth opportunities (3yr)  Strengthening Europe distributio

31. Slide 31: One nVent Strategic Distribution Alliance – Growth Example

    One nVent Strategic Distribution Alliance – Growth Example Rexel alliance strategy Growth Performance • ~€12B Global Electrical Distributor • 25 Countries, 1,900 branches Growth  We aligned to Rexel’s Strategic Ambitions +15% nVent Growth at Rexel  Global perspective and local execution Growth 201

32. Slide 32: Strategic Distribution Alliances Summary

    Strategic Distribution Alliances Summary  Large Opportunity through Strategic Distribution Alliances  Positioned for Growth Today and The Future  Proven Growth Strategy with Strong Performance  The Power of One nVent 32 2021 nVent Investor and Analyst Meeting: March 3, 2021

33. Slide 33: Enclosures

    2021 nVent Investor and Analyst Meeting Enclosures Joe Ruzynski, President March 3, 2021 33 2021 nVent Investor and Analyst Meeting: March 3, 2021

34. Slide 34: Who We Are

    Who We Are Business Strengths 2020 Financials Verticals Geographies Enclosures leader in US 62% 65% and 2nd globally* Industrial NAM Leader in Data Protection $953M 17% 26% Revenue and Advanced Cooling Infrastructure EMEA 15% Over 100 million Commercial 7% & Residential enclosures installed 15.6% 6%

35. Slide 35: What Enclosure Solutions Do

    What Enclosure Solutions Do Examples where enclosures protect critical applications Factory 4.0 Our enclosures ensure resiliency in the most critical systems by 5G protecting electrical equipment, electronics and data Data centers Smart rail Food & Pharma …and we protect, connect and manage heat in

36. Slide 36: Value Proposition

    Value Proposition We make systems resilient We sell global, we serve local We make it easy  Avoid downtime through optimum protection  Localized manufacturing  Digital, software, panel shop automation  Application expertise  Regional supply chain  Product breadth and fast lead times  Advanced

37. Slide 37: Growth Initiatives

    Growth Initiatives High growth verticals Global growth Innovation and digital  Positioned to fastest growing verticals  Now in position to accelerate  Launched 18 new products in 2020 and  Data and smart infrastructure diversification outside North America strong funnel in 2021  Continue to div

38. Slide 38: The World is Electrifying

    The World is Electrifying Opportunity* Automation & Smart infrastructure Data and Communications Product design for optimum $8B  Food & Pharma  Test & Measurement protection Excellent product fit and channel Data Centers & Global reach to  Edge Computing serve global  Discrete manufacturing  2

39. Slide 39: Global but we Serve Local

    Global but we Serve Local Opportunity* We are where the growth and size are Eldon acquisition opened up Manufacturing a $2B opportunity Distribution centers Sales  New and upgraded factories in $8B India, China, US, and Mexico  Global accounts benefit from globally* lower engineering & procurement

40. Slide 40: Innovation: Solving for Heat in Data Centers

    Innovation: Solving for Heat in Data Centers Fast growth opportunity* New Advanced Cooling opens up a $500M opportunity* We enjoy a strong legacy with Innovation through strategic $2B 10% cabinets and data cooling alliances accelerates growth in 2020 CAGR ‘20-26  Over 400 million of servers in the

41. Slide 41: Innovation: Digital is a Growth Accelerator

    Innovation: Digital is a Growth Accelerator Strong differentiation Modern, fresh and compelling digital tools  Two new websites with rich content  Products structured around verticals  Instant price and material list for quoting  Product availability including channel  Fast order processing  D

42. Slide 42: Enclosures Summary

    Enclosures Summary  Faster global growth with local execution  Profitable growth in attractive verticals  Digital and innovation to drive growth 42 2021 nVent Investor and Analyst Meeting: March 3, 2021

43. Slide 43: Electrical and Fastening Solutions

    2021 nVent Investor and Analyst Meeting Electrical and Fastening Solutions Robert van der Kolk, President March 3, 2021 43 2021 nVent Investor and Analyst Meeting: March 3, 2021

44. Slide 44: Who We Are

    Who We Are Business Strengths 2020 Financials Verticals Geographies Strong brands with 52% 73% leadership positions $569M Commercial & Residential NAM 19% #1 US Electrical and Revenue Fastening Solutions 34% EMEA provider* Infrastructure 6% APAC Known for innovation and with >90% customer satisfacti

45. Slide 45: What We Do: Power and Data Infrastructure

    What We Do: Power and Data Infrastructure Efficiently manage power and data Connect and protect power and cable pathways data systems #1 #1 Fastening Provider in US* Grounding and Bonding Provider in US* We have Industry-leading installation and protection solutions *Based off internal estimates 45

46. Slide 46: Main Value Propositions

    Main Value Propositions Reduced Total Installed Cost Safety & Reliability Application Expertise 12-15% Project Cost Savings $26B Damage from transients >200 Global technical committees 30% Installation Time Savings 91% Lightning capture efficiency >10K hours of training delivered Power and data cabl

47. Slide 47: The World is Electrifying

    The World is Electrifying Opportunity* Technology and Connectivity Electrification of Everything Implications Efficient pathway $16B Main Growth Verticals Power Utilities Data Centers Smart Buildings management for power and data cable $2.5B serviced today Innovative power connections #1 Trends Safe

48. Slide 48: Growth Initiatives

    Growth Initiatives High Growth Verticals & 1 2 Global Growth 3 Innovative Solutions Applications  Power Utilities  Europe  20+ Annual New Products  Data Centers  Asia Pacific  Low Voltage Power Connections $1.5B+ $9B+ +1% Total Opportunity Total Opportunity Annual organic growth ...we have thr

49. Slide 49: Infrastructure Main Opportunities

    Infrastructure Main Opportunities Data Centers  Power Utilities  $50M Sales $0.5B Total Opportunity $40M Sales $1B Total Opportunity Surge Protection Lightning Solar Grounding and Wind Turbine Lightning Power Connections protection Power Connections Blade Protection Protection CADWELD Exothermic C

50. Slide 50: Smart Buildings

    Smart Buildings $290M $12B Alternative Energy Sales Total Opportunity Surge Protection Lightning Protection Connectivity CAGR Global smart >10% building application growth Cable Pathways & Million EV power Management stations in >50 commercial buildings by 2030 CAGR Global growth DC Fast Charging >3

51. Slide 51: Global but We Serve Local

    Global but We Serve Local Opportunity* Opportunities outside North America Why we win  Strong value proposition $16B 5 4  Focused country model Total Opportunity 5  Strong distribution and end 1.5 user relationships  Clear vertical focus with dedicated $2.5B 1 team of experts Addressable  Regio

52. Slide 52: Innovative Solutions

    Innovative Solutions ~25 Patent applications per year >1% Annual growth from new products >200 Global technical committees Participations to drive impactful innovation Strong end user intimacy “Thank you. You have done what we asked and provided better solutions than your competition….what’s next :)

53. Slide 53: Electrical and Fastening Solutions Summary

    Electrical and Fastening Solutions Summary  Electrification of everything… we ARE power and data infrastructure  Skilled labor shortage… we save 30% installation time  Innovation is key… we out-innovate  Multiple growth drivers 53 2021 nVent Investor and Analyst Meeting: March 3, 2021

54. Slide 54: Thermal Management

    2021 nVent Investor and Analyst Meeting Thermal Management Brad Faulconer, President March 3, 2021 54 2021 nVent Investor and Analyst Meeting: March 3, 2021

55. Slide 55: Who We Are

    Who We Are Business Strengths 2020 Financials Verticals Geographies nVent RAYCHEM #1 40% brand* in electric heat- tracing $477M Industrial 55% NAM Revenue Large installed base 38% for MRO sales with +1.8B Commercial & Residential 35% feet installed heat tracing EMEA Leading application 19.7% 18% ROS

56. Slide 56: What We Do

    What We Do Protect against Keep processes Protect people and Provide comfort freezing… running… environment Heat-tracing & snow Heat-tracing, controls Fire rated wiring and leak Floor heating and hot melting and services detection water maintenance nVent’s products and services protected power gener

57. Slide 57: Main Value Propositions

    Main Value Propositions Save on total installed cost Prevent downtime Save on operating cost …with advanced engineering and …with reliable solutions …with smart controls ease-of-use products and tools and services A frozen pipe causing a downtime 85% time savings with Mechanical costs multi-million

58. Slide 58: The World is Electrifying

    The World is Electrifying Opportunity* Electrification of everything Thermal solutions Advanced controls & Connected software $18B ~$3.3B Growth verticals Industrial Commercial & Infrastructure Reliable, high-temperature (Chemicals) Residential electric solutions vs. steam served today Cable technol

59. Slide 59: Growth Initiatives

    Growth Initiatives Expand Commercial, Mine the Industrial Win Strategic Accts 1 2 3 Residential, Infrastructure Installed Base & Opportunities Expand to other Modernize a $5B installed Pursue strategic CAPEX geographies, channels and base of heat tracing investments, focus on applications installati

60. Slide 60: We are Global

    We are Global Served Opportunity 0.8 size ($B)* Global Manufacturing 0.8 Regional finishing Distribution 1.0 Engineering 0.7 Global Strengths Grow outside North America  Engineering centers with Europe Middle East & India China global work share near  One nVent distribution  Chemical & Infrastruc

61. Slide 61: Innovation to Build on Our Strengths

    Innovation to Build on Our Strengths Save on total installed cost Prevent downtime Save on operating cost …with advanced engineering and …with reliable solutions …with smart controls ease-of-use products and tools and services RAYCHEM Elexant 9200 Wireless Interface RAYCHEM HTV heating cable RAYCHEM

62. Slide 62: Digital Investments to Strengthen Leadership Position

    Digital Investments to Strengthen Leadership Position Configure and design Operate and use …with online design tools and advanced …serving actionable data to monitor critical engineering automation infrastructure. TRACERLYNX engineering automation: Customer case studies RAYCHEM Supervisor IIoT SaaS

63. Slide 63: Thermal Management Summary

    Thermal Management Summary  Align to high-growth verticals and regions  Execute on growth initiatives  Innovate with new products and connected solutions 63 2021 nVent Investor and Analyst Meeting: March 3, 2021

64. Slide 64: Financial Overview

    2021 nVent Investor and Analyst Meeting Financial Overview Sara Zawoyski, CFO March 3, 2021 64 2021 nVent Investor and Analyst Meeting: March 3, 2021

65. Slide 65: Strong Financial Position

    Strong Financial Position Return on Sales Capex as % of Sales Free Cash Flow Balance Sheet 17.4% ~2% $306M 2.1X Managed Maintained Delivered Optionality with decrementals in strategic record 120% net debt leverage downturn investments Conversion nVent is well-positioned to create value Focused on Gr

66. Slide 66: Financial Performance

    Financial Performance Sales & ROS%, Past 3 Years Next 3 years +2% CAGR $2.2B $2.2B ’17-’19 Organic $2.0B Sales  Organic sales growth should accelerate 19.1% 19.3% 17.4% - Mega trends and Infrastructure growth - New products and more global - Industrial recovery 2018 2019 2020 Sales ROS%  Acquisiti

67. Slide 67: Confirming Q1 and Full-Year Outlook

    Confirming Q1 and Full-Year Outlook Q1 2021 Full-Year 2021 Organic Sales Adjusted EPS Organic Sales Adjusted EPS -9% to -4% $0.32 to $0.36 +3% to +6% $1.58 to $1.68 (flat YoY at midpoint) (+9% YoY at midpoint)  Seeing early signs of Industrial recovery; strong  Each segment expected to grow and ex

68. Slide 68: Investments Driving Value in 2021 and Beyond

    Investments Driving Value in 2021 and Beyond New Products Digital Driving Value Global Capability  Target >1pt of sales growth per year  New digital prioritization  Target >2pts contribution from global  Margin accretive  Expect $20 - 40M+ of sales growth sales over time  Europe and China key

69. Slide 69: Margin Expansion

    Margin Expansion Enclosures Electrical & Fastening Thermal Management 2020 ROS 15.6% (2019, 17.5%) 2020 ROS 26.4% (2019, 25.8%) 2020 ROS 19.7% (2019, 24.6%)  High growth verticals  Lean enterprise  High margin recovery, growth  Factory automation, logistics  Digital transformation  More effici

70. Slide 70: Working Capital Efficiencies

    Working Capital Efficiencies Working Capital as % of Sales Focus Areas  Supply chain efficiencies and lean enterprise  Digital and data analytics ~$500M ~$450M  One nVent terms harmonization 23% 23% 2020 Proof Points of Early Success < 20% Working capital improvements in Electrical & Fastening th

71. Slide 71: Strong and Resilient Free Cash Flows

    Strong and Resilient Free Cash Flows Free Cash Flow Strength proven through the years … Resiliency proven through downturn FCF Conversion % ~100% ~100% ~120% ≥ 100% $301M $304M $306M  Applying best practices to working capital to improve conversion 15% > 15%  Asset light model with capex ~2% of sa

72. Slide 72: Capital Allocation

    Capital Allocation Acquisitions Manage Reinvest in the Return Cash to and Leverage business Shareholders Partnerships  Net debt to EBITDA  Asset light business  Target ROIC > WACC in  Maintain competitive leverage at 2.1X model of ~2% capex 2 to 3 years dividend  Target of 2.0 – 2.5X  Invest i

73. Slide 73: Long-Term Value Creation Goals

    Long-Term Value Creation Goals Revenue Growth Acquisitions Adjusted EPS Free Cash Flow  Electrification of  Expand connect and  30%+ incrementals  Capex ~2% of sales Everything​ protect portfolio  Price plus productivity  Working capital  Higher growth verticals  Broaden offering in high off

74. Slide 74: Finance Summary

    Finance Summary  Recovery plus favorable mega trends  Path to expand top-tier margins  Strong, resilient free cash flow  Deploying capital to drive growth  Our future is bright 74 2021 nVent Investor and Analyst Meeting: March 3, 2021

75. Slide 75: Appendix and GAAP to Non-GAAP Measurements & Reconciliations

    Appendix and GAAP to Non-GAAP Measurements & Reconciliations 75 2021 nVent Investor and Analyst Meeting: March 3, 2021

76. Slide 76: Reported to Adjusted 2020 Reconciliation

    Reported to Adjusted 2020 Reconciliation 76 2021 nVent Investor and Analyst Meeting: March 3, 2021

77. Slide 77: Reported to Adjusted 2019 Reconciliation

    Reported to Adjusted 2019 Reconciliation 77 2021 nVent Investor and Analyst Meeting: March 3, 2021

78. Slide 78: Reported to Adjusted 2018 Reconciliation

    Reported to Adjusted 2018 Reconciliation 78 2021 nVent Investor and Analyst Meeting: March 3, 2021

79. Slide 79: Reported to Adjusted 2021 Reconciliation

    Reported to Adjusted 2021 Reconciliation 79 2021 nVent Investor and Analyst Meeting: March 3, 2021

80. Slide 80: Organic Sales Growth & Free Cash Flow Reconciliation

    Organic Sales Growth & Free Cash Flow Reconciliation 80 2021 nVent Investor and Analyst Meeting: March 3, 2021

81. Slide 81: Return on Invested Capital Reconciliation

    Return on Invested Capital Reconciliation 81 2021 nVent Investor and Analyst Meeting: March 3, 2021

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