Slide 1: nVent Second Quarter 2018 Earnings Presentation
nVent Second Quarter 2018 Earnings Presentation
Slide 2: Forward Looking Statement
Forward Looking Statement 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 historical fact are fo
Slide 3: Key Definitions and Notes
Key Definitions and Notes Except as otherwise noted all references to 2018 and 2017 represent our results for the period indicated, presented on an adjusted basis “Organic Sales" refers to GAAP revenue excluding (1) the impact of currency translation and (2) the impact of revenue from acquired b
Slide 4: Executive Summary
Executive Summary Sales of $543 million grew 4% organically Q2‛18 ROS was 19.7% EPS of $0.44 Strong Enclosures growth and sequential 270 bps margin improvement Segment Callouts Thermal Management longer cycle energy business still in recovery Broad-based growth in Electrical & Fastening
Slide 5: Q2'18 nVent Performance
Q2’18 nVent Performance Sales ($ in millions) Financial Highlights (yoy) $9 $10 $543 $11 $0 Organic sales up 4% $513 • Enclosures: Up 7% ~6% • Thermal Management: Down 3% YoY • EFS: Up 5% 2 pts 2 pts 0 pts 2 pts Segment Income up 1%, up 4% excluding corporate and other costs Q2'17 Volume Price A
Slide 6: A Deeper Dive Into Enclosures
A Deeper Dive Into Enclosures Geographies* 1% Other Developed Connect and Protect Critical 11% 69% Components and Electronics Developing US & Canada A leader in North America industrial 19% enclosures and European electronic Developed protection Europe One of the broadest portfolios in the ind
Slide 7: Q2'18 Segment Performance
Q2‛18 Segment Performance Enclosures Thermal Management EFS ($ in millions) ($ in millions) ($ in millions) Sales $256 Sales Sales $234 $148 +9% $140 $139 $139 +6% -1% Q2'17 Q2'18 Q2'17 Q2'18 Q2'17 Q2'18 Segment Income Segment Income Segment Income $48 $41 $41 $46 $28 $30 +5% +10% -1% ROS 19.5% ROS
Slide 8: Q3'18 nVent Outlook
Q3‛18 nVent Outlook Q3‛18 Guidance Q3‛17 Organic Sales +2% - 4% $541M ROS 19% - 21% 21.1% EPS (reported) $0.37 - $0.41 EPS (adjusted) $0.44 - $0.48 Summary Other Considerations Continued sales strength Tax rate: ~18% ROS YoY gains in Enclosures First full quarter of Net Interest Expense: $11
Slide 9: Full-Year 2018 nVent Pro Forma Outlook
Full-Year 2018 nVent Pro Forma Outlook Enclosures Thermal Mgmt. EFS Total Organic Sales Up 3-5% Up 0-2% Up 2-4% Up 2-4% ROS ~Flat +50-70bps +30-50bps ~Flat Corporate Expenses ~$45M Net Interest Expense ~$38M Tax Rate ~18% Reported EPS $1.27 - $1.33 Adjusted EPS $1.72 - $1.78 Shares ~181M Key Conside
Slide 10: Capital Allocation Philosophy
Capital Allocation Philosophy Return Excess Reinvest in Manage Leverage M&A Cash to the business Shareholders • Target Debt to • Target capex ~2% • Focus on bolt-on • Target competitive EBITDA Leverage* of Sales acquisitions dividend at ~40% of 2 – 2.5X Free Cash Flow • One nVent growth • Target ROI
Slide 11: Summary: We are a Leader in Connection and Protection
Summary We are a Leader in Connection and Protection We have industry leading positions in growing verticals We have attractive segments with differentiated growth opportunities We have a clear strategy and are focused on driving organic growth Our One nVent approach can accelerate performan
Slide 12: Appendix: GAAP to Non-GAAP Measurements & Reconciliations
Appendix GAAP to Non-GAAP Measurements & Reconciliations
Slide 13: Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation 13
Slide 14: Reported to Adjusted 2017 Reconciliation
Reported to Adjusted 2017 Reconciliation 14
Slide 15: 2018 Organic Sales Growth Reconciliation
2018 Organic Sales Growth Reconciliation 15
Slide 16: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 16