Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q4 2019 Earnings Presentation
19 slides from Nvent Electric's earnings presentation, Feb 5, 2020
Slide 1: nVent Fourth Quarter and Full-Year 2019 Earnings Presentation
nVent Fourth Quarter and Full-Year 2019 Earnings Presentation February 5, 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 Sales of $567 million, flat year-over-year, down 3% organically ROS was 19.2%, expanded 10 bps Q4 ‛19 Adjusted EPS of $0.47, up 4% Delivered strong Free Cash Flow of $169 million Sales of $2.2 billion, flat year-over-year Full-Year ROS was 19.3%, expanded 20 bps; Adjust
Slide 4: 2019 Priorities
2019 Priorities • Accelerated One nVent initiatives Organic Growth • Drove key vertical growth • Launched new products • Delivered price + productivity to offset inflation Margin Expansion • Drove supply chain efficiencies • Returned cash in form of dividends and repurchases Capital Allo
Slide 5: At nVent: Connect and Protect is our Mission
At nVent: Connect and Protect is our Mission Favorable Increased Electrification Need for labor- trends position of everything safety and savings us well: security Our Solution: Enclosures • Protection of Electronics and Data Everywhere Thermal Management • Connection and Protection for Safety and S
Slide 6: Q4 '19 nVent Performance
Q4 ’19 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $568 $23 $567 Sales flat, Organic down 3% $8 ($5) • Sales contribution from acquisitions ($27) Flat YoY Price + productivity more than offset inflation Protected profit -5 pts 2 pt 4 pts -1 pt • Return on sales up 10 bps
Slide 7: Full-Year '19 nVent Performance
Full-Year ’19 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $2,214 $31 Organic Sales flat $38 $2,204 ($37) ($40) Flat Price + productivity more than offset inflation YoY Segment Income flat • Return on sales expanded 20 bps -2 pts 2 pts 1 pt -1 pts ‒ Enclosures up 40 bps F
Slide 8: Q4 '19 Segment Performance
Q4 ’19 Segment Performance Sales Segment Income Commentary ($M) ─ Slowdown in the Industrial vertical Enclosures $256 $40 Strong sales in One nVent initiatives Up 2% Up 3% Eldon contributed ~$23M in Sales Down 6% organic ROS 15.6% (+10bps) Strong operational performance, positive net productiv
Slide 9: Full-Year '19 Segment Performance
Full-Year ’19 Segment Performance Sales Segment Income Commentary ($M) Expanded ROS by 40 bps, strong operational performance Enclosures $1,034 $181 Positive contributions from One nVent initiatives Up 1% Up 4% Eldon contributed ~$31M in Sales Flat organic ROS 17.5%(+40bps) ─ Slowdown in Indus
Slide 10: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow CASH FLOW ($M) Debt Summary $1,070M Maturity Q4 2019 2019 Net Income $ 62 $ 239 $800M $300M @ 2023 75% Fixed Amortization 15 61 $500M @ 2028 Subtotal $ 77 $ 301 Depreciation 9 35 $270M 25% Variable 2023 Capital Expenditures (10) (39) Working Capital 107 6 Q4 ‘19 Weighted
Slide 11: Full-Year 2020 nVent Outlook
Full-Year 2020 nVent Outlook Total nVent Organic Sales by Segment Up 3 – 7% including Eldon Flat – Up 5% Enclosures Sales Down 3 – Up 1% Down 2 – Up 2% Organic Thermal Management Down 1 – Up 3% ROS Flat – Up 30 bps EFS Flat – Up 3% Key Considerations Adjusted EPS $1.85 – $1.95 Target FCF at 100% o
Slide 12: First Quarter 2020 nVent Outlook
First Quarter 2020 nVent Outlook Q1 ‘20 Q1 ’19 Other Items Reported Sales -1 to 1% $538M Tax Rate 18 to 19% Organic Sales -4 to -2% Net Interest Expense ~$11M EPS (adjusted) $0.37 to $0.41 $0.39 Shares ~170M Summary Enclosures Industrial sales expected to remain soft Thermal Management sales exp
Slide 13: 2020 Priorities
2020 Priorities • Accelerate and expand One nVent initiatives Organic Growth • Grow sales globally • Launch record number of new products Margin and • Expand margins Working Capital • Optimize inventory levels • Return cash in form of dividends and repurchases Capital Allocation • Focus on accretive
Slide 14: Summary: We are a Leader in Connection and Protection
Summary We are a Leader in Connection and Protection Strong organic sales growth and ROS expansion in EFS Eldon is a great strategic fit with a strong IEC product portfolio Thermal Management gaining traction and building backlog Continued momentum with our strategic growth initiatives Exp
Slide 15: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Slide 16: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2019 excluding the effect of 2019 adjustments (Unaudited) In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Ful
Slide 17: Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2018 excluding the effect of 2018 adjustments (Unaudited) In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Ful
Slide 18: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2020 excluding the effect of 2020 adjustments (Unaudited) Forecast (1) In millions, except per-share data First Quarter Full Year Net sales $ 2,270 Operat
Slide 19: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment for the quarter and year ended December 31, 2019 (Unaudited) Q4 Net Sales Growth Full Year Net Sales Growth Organic Currency Acq./Div. Total Organic Curre