Eaton Corporation, PLC · NYSE:ETN

Eaton — Q4 2021 Earnings Presentation

16 slides from Eaton's earnings presentation, Feb 4, 2022

  1. Slide 1: Fourth Quarter 2021 Earnings Release

    Fourth Quarter 2021 Earnings Release Craig Arnold | February 4, 2022 © 2022 Eaton. All rights reserved. 1

  2. Slide 2: Forward-looking statements and non-GAAP financial information

    Forward-looking statements and non-GAAP financial information This presentation or the comments we make on our call today contain forward-looking statements concerning, among other matters, full year and first quarter 2022 organic revenue growth, segment operating margins, impact from currency trans

  3. Slide 3: Highlights

    Highlights Adjusted earnings per share of $1.72, a fourth quarter record, up 19% versus 4Q20. Sales of $4.8B up 2%. Organic revenue up 6%. Segment margins of 19.3%, a fourth quarter record, up 190 bps versus 4Q20 with strong incremental margins. Electrical segment backlog was up 56% and rolling 12 m

  4. Slide 4: Financial Summary

    Financial Summary (M) 4Q ‘21 4Q ‘20 V ‘20 Sales $4,798 $4,687 2% Segment Operating Profit 926 815 14% Segment Operating Margin 19.3% 17.4% 190 bps Adjusted Earnings 691 581 19% Adjusted EPS $1.72 $1.45 19% $1.72 Q4 record Adjusted earnings per share Sales Growth: Organic 6% Acq./Divest. (3)% 19.3% Q

  5. Slide 5: Electrical Americas Segment

    Electrical Americas Segment (M) 4Q ‘21 4Q ‘20 V ‘20 Sales $1,917 $1,703 13% Operating Profit 368 359 3% Operating Margin 19.2% 21.1% 190 bps o Orders up 20% on a rolling 12-month basis Sales Growth: Organic 5% organically with particular strength in residential and data center markets Acquisition 8%

  6. Slide 6: Electrical Global Segment

    Electrical Global Segment (M) 4Q ‘21 4Q ‘20 V ‘20 Sales $1,424 $1,252 14% Operating Profit 277 208 33% Operating Margin 19.5% 16.6% 290 bps o Orders up 22% on a rolling 12-month basis organically with particular strength in data center, Sales Growth: Organic 15% residential and utility markets Forex

  7. Slide 7: Aerospace Segment

    Aerospace Segment (M) 4Q ‘21 4Q ‘20 V ‘20 Sales $759 $542 40% Operating Profit 189 99 91% Operating Margin 24.9% 18.3% 660 bps o Orders up 19% on organic rolling 12 month basis Sales Growth: Organic 4% primarily driven by strength in commercial markets o Backlog up 16% y-o-y on organic basis Acquisi

  8. Slide 8: Vehicle Segment

    Vehicle Segment (M) 4Q ‘21 4Q ‘20 V ‘20 Sales $610 $620 (2)% Operating Profit 100 103 (3)% Operating Margin 16.4% 16.6% (20) bps o Organic growth from North America Class 8 and Sales Growth: Organic (1)% South America more than offset by weakness in global light motor vehicle Forex (1)% Total (2)% ©

  9. Slide 9: eMobility Segment

    eMobility Segment (M) 4Q ‘21 4Q ‘20 V ‘20 Sales $88 $85 4% Operating (Loss) (8) (5) --- Operating Margin (9.1)% (5.9)% 320 bps o Acquired Royal Power Solutions on January 5th Sales Growth: Organic 4% o Cumulative new program wins of $800M of mature year revenues, including Royal Power Solutions Tota

  10. Slide 10: 2021 Highlights

    2021 Highlights Robust organic growth of 10% with record Electrical backlog and solid Aerospace backlog Record segment margins of 18.9%, up 250 bps, with incremental margins of 43% Transformative portfolio management with ~$8B of completed portfolio actions Outstanding Adjusted EPS growth of 35% Tot

  11. Slide 11: 2022 Organic Growth and Operating Margin Guidance

    2022 Organic Growth and Operating Margin Guidance Segment Organic Growth Guidance Operating Margin Guidance Electrical Americas 7 – 9% 21.3% – 21.7% Electrical Global 7 – 9% 19.4% – 19.8% Aerospace 10 – 12% 22.1% – 22.5% Vehicle 7.5– 9.5% 18.5% – 18.9% eMobility 11 – 13% 0.8% – 1.2% Eaton 7– 9% 19.9

  12. Slide 12: 2022 Guidance

    2022 Guidance 2022 Full Year Outlook Adjusted Earnings Per Share $7.30 – $7.70 Organic Revenue 7 – 9% Currency Translation Flat with 2021 Acquisition & Divestiture (3.5)% Segment Operating Margins 19.9% – 20.3% Corporate Expenses (interest, pension, other corporate) Flat with 2021 Tax Rate on Adjust

  13. Slide 13: Summary

    Summary Eaton is an intelligent power management company Well aligned with secular growth trends of electrification, energy transition and digitalization Continuing to expand margins and delivering double digit EPS growth Demonstrating shareholder-oriented capital allocation, including disciplined M

  14. Slide 14: Appendix

    APPENDIX © 2022 Eaton. All rights reserved. 14

  15. Slide 15: Appendix

    Appendix © 2022 Eaton. All rights reserved. 15

  16. Slide 16: Appendix

    Appendix © 2022 Eaton. All rights reserved. 16

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