Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q4 2020 Earnings Presentation
18 slides from Nvent Electric's earnings presentation, Feb 9, 2021
Slide 1: nVent Fourth Quarter and Full-Year 2020 Earnings Presentation
nVent Fourth Quarter and Full-Year 2020 Earnings Presentation February 9, 2021
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 continues ‒ Sales improved sequentially during the quarter in all segments ‒ Q4 ROS of 18.6% continues to recover with disciplined cost control ‒ Genera
Slide 4: Q4 and Full-Year 2020 Summary
Q4 and Full-Year 2020 Summary Sales of $521 million, down 8% and 11% organically ROS was 18.6%; decrementals of 26% Q4 2020 Adjusted EPS of $0.43, down 9% Free cash flow of $126 million, ~175% conversion of adjusted net income Sales of $2.0 billion, down 9% year-over-year Full-Year 2020
Slide 5: Q4 '20 nVent Performance
Q4 ‘20 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $567 Sales down 8%, Organic down 11% $1 $4 $10 $521 • Acquisitions added 1 point of growth ($61) -8% Price plus productivity more than offset inflation YoY Segment Income down 11% -11 pts 0 pts 1 pts 2 pts • Return on sa
Slide 6: Full-Year '20 nVent Performance
Full-Year ‘20 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $2,204 Sales down 9%, Organic down 13% $4 $84 $4 $1,999 • Acquisitions added 4 points of growth ($297) -9% Price plus productivity more than offset inflation YoY Segment Income down 18% -13 pts 0 pts 4 pts 0 pts •
Slide 7: Q4 '20 Segment Performance
Q4 ‘20 Segment Performance Sales Segment Income Commentary ($M) ROS down 20bps and 18% decrementals Enclosures $230 $35 New IEC portfolio continues to gain momentum Down 10% Down 11% Data Centers and Networking Solutions, Rail, Food and Beverage Down 12% organic ROS 15.4% (-20bps) ─ Industrial
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow CASH FLOW ($M) DEBT SUMMARY ($M) $952 Maturity $800 $300 @ 2023 84% Fixed $500 @ 2028 $152 16% Variable 2023 Q4 ‘20 Weighted Average Rate ~3.9% Note: Does not include $123 of cash on hand at quarter-end and $4 of unamortized debt issuance costs DEBT ROLL FORWARD ($M) Ca
Slide 9: 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 2.1X of $40 - $45M in 2021 remain a top priority dividend • Target of 2.0X - 2.5X •
Slide 10: Full-Year 2021 nVent Outlook
Full-Year 2021 nVent Outlook Total nVent Key Vertical Drivers Up 4 to 8% Sales Expect strong Industrial recovery Up 3 to 6% organic Continued investments in Infrastructure drive growth Mixed sub-vertical performance within Commercial $1.58 to $1.68 Adjusted EPS Energy slower to recover Up 5
Slide 11: Q1 '21 nVent Outlook
Q1 ‘21 nVent Outlook Q1 ‘21 Q1 ‘20 Other Items Organic Sales -9 to -4% $521M Tax Rate 17 to 18% EPS (reported) $0.24 to $0.28 $0.11 Net Interest Expense ~$9 to $10M EPS (adjusted) $0.32 to $0.36 $0.34 Shares ~169M Summary Ongoing uncertainty and challenges related to global health and economic cri
Slide 12: 2021 Priorities
2021 Priorities • Safety and well-being of our employees People • Social responsibility • Employee engagement • High-growth verticals Growth • Global sales • New products and digital Working Capital and • Margin expansion Productivity • Inventory level optimization Capital Allocation • Capital deplo
Slide 13: Strong Foundation – Bright Growth Prospects
Strong Foundation – Bright Growth Prospects Electrification of everything and the need for labor-saving solutions position us for growth Strong brands with leading positions High-performance culture and our Spark management system are our foundation Top-tier margins with runway Strong cash
Slide 14: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Slide 15: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation Q4 ‘20 Earnings Presentation 15
Slide 16: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation Q4 ‘20 Earnings Presentation 16
Slide 17: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation 17
Slide 18: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation Q4 ‘20 Earnings Presentation 18