Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q3 2020 Earnings Presentation
14 slides from Nvent Electric's earnings presentation, Oct 30, 2020
Slide 1: nVent Third Quarter 2020 Earnings Presentation
nVent Third Quarter 2020 Earnings Presentation October 30, 2020
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 Strong execution and sequential improvement in third quarter results ‒ Sales and margin improved sequentially in all segments ‒ Maintained disciplined cost control and d
Slide 4: Q3 '20 Summary
Q3 ‛20 Summary Sales of $509 million, down 9% and 14% organically ROS was 19.8%; decrementals of 27% Q3 ‛20 Adjusted EPS of $0.45, down 8% Free Cash Flow of $105 million, ~140% conversion of adjusted net income Electrical & Fastening delivered strong results with sales down 1% and 27.6% RO
Slide 5: Q3 '20 nVent Performance
Q3 ‘20 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $560 Sales down 9%, Organic down 14% $2 $20 $5 $509 • Acquisitions added 4 points of growth ($78) -9% Price and productivity more than offset inflation YoY Segment Income down 12% -14 pts 0 pts 4 pts 1 pt • Return on sal
Slide 6: Q3 '20 Segment Performance
Q3 ‘20 Segment Performance Sales Segment Income Commentary ($M) ROS down 10bps and 20% decrementals Enclosures $245 $44 Recent wins and channel conversions with new IEC portfolio Down 7% Down 8% Data Centers and Networking Solutions, Rail, Healthcare, Utilities Down 14% organic ROS 18.0% (-10b
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow CASH FLOW ($M) DEBT SUMMARY ($M) $1,057 Maturity $800 $300 @ 2023 76% Fixed $500 @ 2028 $257 24% Variable 2023 Q3 ‘20 Weighted Average Rate ~3.6% Note: Does not include $160 of cash on hand at quarter-end and $4 of unamortized debt issuance costs DEBT ROLL-FORWARD ($M)
Slide 8: Capital Allocation Update
Capital Allocation Update Return Excess Manage Reinvest in the M&A Cash to Leverage business Shareholders • Net debt to adjusted • Expect full-year capex • Bolt-on acquisitions • Maintain competitive EBITDA ratio at 2.3X of ~$40M remain a top priority dividend • Target of 2.0X - 2.5X • Investments i
Slide 9: Q4 '20 nVent Outlook
Q4 ‘20 nVent Outlook Q4 ‘20 Q4 ‘19 Other Items Organic Sales -14 to -10% $567M Tax Rate ~17% EPS (reported) $0.30 to $0.35 $0.27 Net Interest Expense ~$9 to $10M EPS (adjusted) $0.38 to $0.43 $0.47 Shares ~170M Summary Ongoing uncertainty and challenges related to global health and economic crisis
Slide 10: Strong Foundation – Bright Growth Prospects
Strong Foundation – Bright Growth Prospects Electrification of everything and the need for labor saving solutions position us for growth Leading positions with strong brands High-performance culture and our Spark management system are our foundation Top-tier margins with runway Strong cash
Slide 11: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Slide 12: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation Q3 ‘20 Earnings Presentation 12
Slide 13: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation Q3 ’20 Earnings Presentation 13
Slide 14: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation Q3 ’20 Earnings Presentation 14