Slide 1: nVent Second Quarter 2022 Earnings Presentation
nVent Second Quarter 2022 Earnings Presentation July 29, 2022 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: Key Messages
Key Messages ▪ Record Q2 sales of $728M, up 21%; strong adjusted EPS of $0.57, up 14% ▪ Broad-based sales growth, strong contribution from price and volume; orders up double-digits ▪ Another quarter of solid execution with sequential ROS improvement ▪ Raising full-year 2022 sales and adjusted EPS gu
Slide 4: Q2 2022 Summary
Q2 2022 Summary ▪ Sales of $728 million, up 21% reported and organic ▪ Segment income of $125 million, up 14%; ROS of 17.2%, up 130 bps sequentially Q2 2022 ▪ Adjusted EPS of $0.57, up 14% ▪ Free cash flow generation of $48 million ▪ Organic sales up double-digits across all verticals and segments Q
Slide 5: Q2 2022 nVent Performance
Q2 2022 nVent Performance Sales ($M) Financial Highlights (YoY) $74 $23 $728 $53 ▪ Sales up 21% reported and organic $601 $(23) - Volume added 9 points and price added 12 points to growth +21% YoY - Acquisitions added 4 points offset by FX headwinds ▪ Price offset total inflation ~9 pts ~12 pts ~4 p
Slide 6: Q2 2022 Segment Performance
Q2 2022 Segment Performance ($M) Sales Segment Income Commentary Strong sales growth across all verticals, led by Data Solutions Enclosures $381 $62 Orders up similar to sales Up 27% Up 15% Acquisitions contributed 8 points to sales growth Up 23% organic ROS 16.2% (-170bps) ± ROS improved sequ
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,054 Maturity Q2 YTD 2022 2022 $500 @ 2028 $800 76% Fixed Net Income $ 80 $ 148 $300 @ 2031 Amortization 18 36 Subtotal $ 98 $ 184 $254 24% Variable 2026 Depreciation 11 22 Q2 ‘22 Weighted Average Rate ~3.6% Capital Expenditures (10) (21
Slide 8: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Cash M&A Leverage the Business to Shareholders ▪ Net debt to adjusted ▪ Full-year capex of ▪ Strategic investment in ▪ Returned ~$67 million EBITDA ratio at 2.0X $50M to $55M in 2022 Iceotope Technologies in cash to shareholders Ltd. in first half
Slide 9: 2022 nVent Outlook
2022 nVent Outlook Total nVent Expected Drivers Guidance as of Updated Guidance 04/29/2022 ▪ Strong order trends and backlog ▪ Supply chain challenges persist Up 11% to 13% Up 14% to 16% Sales Up 11% to 13% organic Up 15% to 17% organic ▪ Strong price realization to help offset inflation ▪ Investmen
Slide 10: Q3 2022 nVent Outlook
Q3 2022 nVent Outlook Q3 ’22 Q3 ’21 Other Items Reported sales Up 10% to 12% $643M Net interest expense ~$9M Organic sales Up 13% to 15% 20% Tax rate 17% to 18% EPS (reported) $0.49 to $0.51 $0.44 Shares ~169M EPS (adjusted) $0.58 to $0.60 $0.53 Expected Drivers ▪ Continued robust sales growth acros
Slide 11: Our Strategy: Strategic Drivers
Our Strategy One nVent STRATEGIC DRIVERS High New Global Growth Growth Verticals Products & Innovation Grow Acquisitions and Partnerships Productivity and Transform Digital Acceleration Working Capital Velocity Focused on growth and performance to drive value Q2 ’22 Earnings Presentation 11
Slide 12: Growth Strategy Highlights
Growth Strategy Highlights High-Growth Verticals New Products and Innovation Acquisitions and Partnerships Data Solutions YTD: Launched 20 new products; Iceotope Investment and Collaboration new products contributed ~3 points to ▪ Expect ~30% FY22 sales growth ▪ Collaboration will offer innovative s
Slide 13: ESG Progress
ESG Progress 2021 ESG Report Goals Update New 2025 Products Goals People Strong progress in employee diversity and safety; on track to achieve goals >90% of products in our active New Product Introduction Funnel with a positive ESG impact Accomplished short-term goals and set new Products long-term
Slide 14: Summary
Summary ▪ Another quarter of sales and adjusted EPS exceeding guidance ▪ Making significant progress on our ESG commitments ▪ Well-positioned for the electrification of everything Our future is bright Q2 ’22 Earnings Presentation 14
Slide 15: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 15 15
Slide 16: Reported to Adjusted 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q2 ’22 Earnings Presentation 16
Slide 17: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation Q2 ’22 Earnings Presentation 17
Slide 18: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q2 ’22 Earnings Presentation 18