Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q1 2018 Earnings Presentation
18 slides from Nvent Electric's earnings presentation, Apr 19, 2018
Slide 1: nVent First Quarter 2018 Earnings Presentation
nVent First 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
Key Definitions Except as Otherwise Noted, All References to nVent and All Amounts Included Herein Represent the Pentair Electrical Business Excluding the Pentair Water Business, Presented on an Adjusted Basis “Organic Sales" Refers to GAAP Revenue Excluding (1) the Impact of Currency Translatio
Slide 4: Executive Summary
Executive Summary Organic Sales Grew 3% Q1’18 ROS for the Electrical Segment was 19.7%* Enclosures Strong Growth and Sequential Margin Improvement Spin Day Expected to be April 30th Spin Update Pentair Board of Directors Approved Spin Financing in Place Outlook Remains the Same 2018 Ou
Slide 5: Q1'18 nVent Performance
Q1’18 nVent Performance Sales ($ in millions) Financial Highlights (yoy) $21 $539 $3 $0 Organic sales up 3% $13 $502 • Enclosures: Up 9% ~7% • Thermal Management: Down 4% YoY • EFS: Up 1% 2 pts 1 pts 0 pts 4 pts Pro Forma Segment Income up 5%** Q1'17 Volume Price Acq. FX Q1’18 Pro Forma ROS at
Slide 6: Q1'18 Segment Performance
Q1’18 Segment Performance Enclosures ($ in millions) Thermal Management EFS ($ in millions) ($ in millions) Sales $254 Sales Sales $227 $148 $137 $145 +12% $130 +2% +5% Q1'17 Q1'18 Q1'17 Q1'18 Q1'17 Q1'18 Segment Income Segment Income Segment Income $40 $41 $34 $32 $32 +1% $26 +29% Flat ROS 17.8% RO
Slide 7: Separation Update
Separation Update February 13, 2018 Investor and Analyst Day Pentair Board of Directors Approved April 3, 2018 Form 10 Effective April 9, 2018 Board of Directors Announced Enterprise Separation Activities on Track nVent (NYSE: NVT) Expected to Begin Trading on May 1 Q1’18 Earnings Presenta
Slide 8: Q2'18 nVent Pro Forma Outlook
Q2’18 nVent Pro Forma Outlook Q2’18 Guidance Q2’17 Organic Sales +2% - 4% $513M Segment Income* +1% - 3% $106M ROS* 18% - 20% 20.6% EPS (reported) $0.33 - $0.36 EPS (adjusted) $0.41 - $0.44 Summary Other Considerations Continued Sales Strength Tax Rate: ~18% Sequential ROS Improvement Pro Fo
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 Int. Exp./Other ~$43M Tax Rate ~18% Reported EPS $1.38 - $1.48 Adjusted EPS $1.70 - $1.80 Shares ~181M Key Consideratio
Slide 10: 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 11: Appendix: GAAP to Non-GAAP Measurements & Reconciliations
Appendix GAAP to Non-GAAP Measurements & Reconciliations
Slide 12: Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation nVent Electric plc Reconciliation of the GAAP year ended December 31, 2018 to the non-GAAP excluding the effect of 2018 adjustments (Unaudited) Actual Forecast First In millions, except per-share data Quarter Second Quarter Full Year Net sales $ 538.9 approx
Slide 13: Reported to Adjusted 2017 Reconciliation
Reported to Adjusted 2017 Reconciliation nVent Electric plc Reconciliation of the GAAP year ended December 31, 2017 to the non-GAAP excluding the effect of 2017 adjustments (Unaudited) First Second Third Fourth In millions Quarter Quarter Quarter Quarter Full Year Net sales $ 502.2 $ 513.2 $ 540.6 $
Slide 14: Reported to Adjusted 2016 Reconciliation
Reported to Adjusted 2016 Reconciliation nVent Electric plc Reconciliation of the GAAP year ended December 31, 2016 to the non-GAAP excluding the effect of 2016 adjustments (Unaudited) First Second Third Fourth In millions Quarter Quarter Quarter Quarter Full Year Net sales $ 524.5 $ 540.7 $ 543.1 $
Slide 15: 2017 Segment Sales and Income by Quarter
2017 Segment Sales and Income by Quarter nVent Electric plc Supplemental Financial Information by Reportable Segment (Unaudited) 2017 First Second Third Fourth In millions Quarter Quarter Quarter Quarter Full Year Net sales Enclosures $ 226.5 $ 234.1 $ 241.7 $ 232.6 $ 934.9 Thermal Management 145.4
Slide 16: 2016 Segment Sales and Income by Quarter
2016 Segment Sales and Income by Quarter nVent Electric plc Supplemental Financial Information by Reportable Segment (Unaudited) 2016 First Second Third Fourth In millions Quarter Quarter Quarter Quarter Full Year Net sales Enclosures $ 225.4 $ 238.3 $ 235.1 $ 212.4 $ 911.2 Thermal Management 179.4
Slide 17: Q1 and FY 2018 Organic Sales Growth Reconciliation
Q1 and FY 2018 Organic Sales Growth Reconciliation nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment for the quarter ended March 31, 2018 (Unaudited) Q1 Net Sales Growth Organic Currency Acq./Div. Total nVent 3.1% 4.2% —% 7.3% Enclosures 8.9% 3.3% —% 12.2%
Slide 18: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation nVent Electric plc Reconciliation of the GAAP operating activities cash flow to the non-GAAP free cash flow (Unaudited) Three months ended In millions March 31, 2018 March 31, 2017 Free cash flow Net cash provided by (used for) operating activities - as reported $ 36.1