Slide 1: nVent Third Quarter 2021 Earnings Presentation
nVent Third Quarter 2021 Earnings Presentation October 28, 2021 1
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: Q3 2021 Summary
Q3 2021 Summary ▪ Sales of $643 million, up 26% and 20% organically ▪ ROS of 18.4%, down 140bps with incrementals* of 13% Q3 2021 ▪ Adjusted EPS of $0.53, up 18% year-over-year ▪ Generated free cash flow of $108 million, greater than 100% conversion ▪ Enclosures continued to see high demand; organic
Slide 4: Q3 2021 nVent Performance
Q3 2021 nVent Performance Sales ($M) Financial Highlights (YoY) $26 $6 $643 ▪ Sales up 26%, organically up 20% $47 $55 $509 - Volume added 11 points of growth +26% YoY ▪ Price offset inflation ▪ Segment Income up 17% ~11 pts ~9 pts ~5 pts ~1 pt - Return on sales of 18.4%, down 140bps Q3 ’20 Volume P
Slide 5: Q3 2021 Segment Performance
Q3 2021 Segment Performance ($M) Sales Segment Income Commentary Industrial vertical up ~30% Enclosures $335 $56 All regions grew strong double digits Up 37% Up 28% Solid price realization Up 25% organic ROS 16.8% (-120bps) Acquisitions performing well Double-digit growth across all vertic
Slide 6: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $980 Maturity Q3 YTD 2021 2021 $800 $300 @ 2023 Net Income $ 74 $ 206 82% Fixed $500 @ 2028 Amortization 18 50 Subtotal $ 92 $ 256 $180 18% Variable 2026 Depreciation 10 30 Q3 ‘21 Weighted Average Rate ~3.8% Capital Expenditures (7) (25) N
Slide 7: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Excess Cash M&A Leverage the Business to Shareholders ▪ Net debt to adjusted ▪ Expect full-year capex of ▪ Bolt-on acquisitions remain ▪ Maintain competitive EBITDA ratio at 2.0X $40 to $45M in 2021 a top priority dividend ‒ CIS Global and Vynckier
Slide 8: 2021 nVent Outlook
2021 nVent Outlook Total nVent Key Drivers Guidance as of Updated Guidance Aug. 3, 2021 ▪ Strong order trends across the portfolio and record backlog Up 15% to 18% Up 19% to 20% ▪ Anticipate inflation and supply chain challenges to continue Sales Up 10% to 13% organic Up 14% to 15% organic ▪ Expect
Slide 9: Q4 2021 nVent Outlook
Q4 2021 nVent Outlook Q4 ’21 Q4 ’20 Other Items Reported Sales Up 13% to 16% $521M Tax Rate 17% to 18% Organic Sales Up 9% to 12% Net Interest Expense ~$9M EPS (reported) $0.36 to $0.39 $0.28 Shares ~170M EPS (adjusted) $0.45 to $0.48 $0.43 Key Drivers ▪ Expect broad-based growth across verticals an
Slide 10: Growing Through M&A
Growing Through M&A ▪ Comprehensive range of IEC products ▪ Enhances Data Center and Networking Solutions offering ▪ Bolsters ability to serve global customers ▪ Enables a one-stop solution for cable management and pathways ▪ Strong offering to serve the Industrial and Commercial verticals ▪ Extends
Slide 11: Key Takeaways
Key Takeaways ▪ Another quarter of sales and EPS exceeding guidance ▪ Orders continued to outpace sales with record backlog ▪ Strong price realization ▪ Managing supply chain challenges ▪ Executing well on growth initiatives: - New products adding over a point of growth - Global sales growing faster
Slide 12: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 12 12
Slide 13: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ending December 31, 2021 excluding the effect of 2021 adjustments (Unaudited) Actual Forecast (1) In millions, except per-share data First Quarter Second Quarter Third Quart
Slide 14: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2020 excluding the effect of adjustments (Unaudited) In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Full Yea
Slide 15: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment for the quarter ended September 30, 2021 (Unaudited) Q3 Net Sales Growth Organic Currency Acq./Div. Total nVent 20.0% 1.1% 5.1% 26.2% Enclosures 25.4% 0