Eaton Corporation, PLC · NYSE:ETN

Eaton — Q3 2021 Earnings Presentation

16 slides from Eaton's earnings presentation, Nov 2, 2021

  1. Slide 1: Third Quarter 2021 Earnings Release

    Third Quarter 2021 Earnings Release Craig Arnold | November 2, 2021 © 2021 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, 2021 organic revenue growth, adjusted earnings per share, adjusted free cash flow, adjusted operating cash flo

  3. Slide 3: Highlights

    Highlights All-time record adjusted earnings per share of $1.75 in 3Q21, up 30% versus 3Q20. Sales of $4.9B up 9%. Organic revenue up 8%. All-time record segment margins of 19.9% in 3Q21, up 230 bps versus 3Q20 with robust incremental margins of 46%. Electrical segments increased backlog > 50% and r

  4. Slide 4: Financial Summary

    Financial Summary (M) 3Q ‘21 3Q ‘20 V ‘20 Sales $4,923 $4,526 9% Segment Operating Profit 978 796 23% Segment Operating Margin 19.9% 17.6% 230 bps Adjusted Earnings 701 544 29% Adjusted EPS $1.75 $1.35 30% $1.75 All-time quarterly record Adjusted earnings per share Sales Growth: Organic 8% Acq./Dive

  5. Slide 5: Electrical Americas Segment

    Electrical Americas Segment (M) 3Q ‘21 3Q ‘20 V ‘20 Sales $1,854 $1,699 9% Operating Profit 402 377 7% Operating Margin 21.7% 22.2% 50 bps o Orders up 17% on a rolling 12-month basis Sales Growth: Organic 1% organically with particular strength in residential and data center markets Acquisition 8% o

  6. Slide 6: Electrical Global Segment

    Electrical Global Segment (M) 3Q ‘21 3Q ‘20 V ‘20 Sales $1,421 $1,196 19% Operating Profit 285 198 44% Operating Margin 20.1% 16.6% 350 bps o Orders up 17% on a rolling 12-month basis Sales Growth: Organic 18% organically with particular strength in data center, residential and utility markets Forex

  7. Slide 7: Aerospace Segment

    Aerospace Segment (M) 3Q ‘21 3Q ‘20 V ‘20 Sales $745 $540 38% Operating Profit 164 100 64% Operating Margin 22.0% 18.5% 350 bps o Orders up 4% on organic rolling 12 month basis Sales Growth: Organic 4% primarily driven by strength in business jets o Backlog up 5% y-o-y on organic basis Acquisition 3

  8. Slide 8: Vehicle Segment

    Vehicle Segment (M) 3Q ‘21 3Q ‘20 V ‘20 Sales $640 $573 12% Operating Profit 115 80 44% Operating Margin 18.0% 14.0% 400 bps o Organic growth driven by North America Class 8 and Sales Growth: Organic 11% South America more than offsetting weakness in North America light motor vehicles Forex 1% o Rob

  9. Slide 9: eMobility Segment

    eMobility Segment (M) 3Q ‘21 3Q ‘20 V ‘20 Sales $84 $79 6% Operating (Loss) (8) (2) --- Operating Margin (9.5)% (2.5)% 7 pts o Organic growth driven by North America and APAC Sales Growth: Organic 6% partially offset by weakness in EMEA o Cumulative new program wins nearly $600M of Total 6% mature y

  10. Slide 10: 2021 Organic Growth and Operating Margin Guidance

    2021 Organic Growth and Operating Margin Guidance Segment Organic Growth Guidance Operating Margin Guidance Electrical Americas 5 – 7% 20.7% – 21.1% Electrical Global 14 – 16% 18.3% – 18.7% Aerospace (1) – 1% 20.8% – 21.2% Vehicle 19 – 21% 17.2% – 17.6% eMobility 16 – 18% (8.9)% – (8.5)% Eaton 9 – 1

  11. Slide 11: 2021 Guidance

    2021 Guidance 2021 Full Year Outlook Adjusted Earnings Per Share* $6.59 – $6.69 Organic Revenue 9 – 11% Currency Translation $250M Acquisition & Divestiture (1)% Segment Operating Margins 18.6% – 19.0% Corporate Expenses (interest, pension, other corporate) Flat with 2020 Tax Rate on Adjusted Earnin

  12. Slide 12: 2022 Eaton End Market Initial Assumptions

    2022 Eaton End Market Initial Assumptions Electrical Sector Industrial Sector Commercial & Institutional Commercial Aerospace Most commercial segments will see a rebound from depressed activity in 2020/2021, Large commercial transport market growth to be very strong, driven by single-aisle while ins

  13. Slide 13: Summary

    Summary Record results in Q3 with excellent margin performance driving 30% Adjusted EPS growth. Delivering strong operational execution in challenging supply chain and inflationary environment. Transformative year in terms of portfolio management to maximize shareholder value. Robust 2021 outlook wi

  14. Slide 14: Appendix

    APPENDIX © 2021 Eaton. All rights reserved. 14

  15. Slide 15: Appendix

    Appendix © 2021 Eaton. All rights reserved. 15

  16. Slide 16: Appendix

    Appendix © 2021 Eaton. All rights reserved. 16

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