Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q1 2020 Earnings Presentation
17 slides from Nvent Electric's earnings presentation, Apr 29, 2020
Slide 1: nVent First Quarter 2020 Earnings Presentation
nVent First Quarter 2020 Earnings Presentation April 29, 2020
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: Our Near-Term Goals During COVID-19
Our Near-Term Goals During COVID-19 1. We will focus first on the safety and well-being of our employees 2. We will continue business operations to serve our customers and support critical infrastructure 3. We will make nVent a stronger company, well-positioned to exit this crisis Working together a
Slide 4: Executive Summary
Executive Summary Deterioration of demand COVID-19 Well-positioned with a healthy capital structure Confident in the steps we are taking and expect to emerge stronger Sales of $521 million, down 3% and 8% organically ROS was 15.6%, contracting 230 bps Q1 ‛20 Adjusted EPS of $0.34, down 1
Slide 5: April 2020 Daily Organic Sales Rates
April 2020 nVent April Daily Organic Sales Rates Down ~20% YoY Enclosures North America Sales down ~20% YoY Sales down ~25% YoY Thermal Management Europe Sales down ~15% YoY Sales down ~15% YoY EFS Asia Sales down ~25% YoY Sales up ~15% YoY Vertical Trends Integrated Supply Chain Gener
Slide 6: Actions in Response to COVID-19
Actions in Response to COVID-19 Temporarily reduced second quarter executive officer salaries (CEO 25%, other executive officers 20%) along with Board of Director fees Implemented two week furloughs and other actions globally, temporarily reduced salaries for Targeting other senior leaders by 10
Slide 7: Emerging Stronger
Emerging Stronger Customers New Products Digital Transformation Responding to new demand Continue to prioritize R&D Launching new Go-To-Market dynamics and customer needs investment programs • Improved websites Well-positioned with regional 11 products launched in Q1 and • Expanded sales a
Slide 8: Q1 '20 nVent Performance
Q1 ’20 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $538 $29 $521 Sales down 3%, Organic down 8% $3 ($5) • Acquisitions added 5 points of growth ($44) -3% YoY Price + productivity largely offset inflation Segment Income down 15% -8 pts 1 pt 5 pts -1 pt • Return on sales d
Slide 9: Q1 '20 Segment Performance
Q1 ’20 Segment Performance Sales Segment Income Commentary ($M) Enclosures ─ Slowdown in the Industrial vertical $259 $41 Up 1% Down 10% ─ COVID-19 related volume declines impacted margin Down 8% organic ROS 15.8% (-200bps) Eldon contributed ~$26M in Sales Thermal Mgmt ─ Headwinds from oil price d
Slide 10: Healthy Liquidity Position
Healthy Liquidity Position Credit Rating BBB- (Stable) / BBB (Negative) from S&P and Fitch, respectively Debt Structure* Total debt of $1.2B $600M revolving credit facility with $200M term loan Key Financial Covenant* • Maximum net leverage ratio not to exceed 3.75x ‒ Net leverage ratio at 2.
Slide 11: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow CASH FLOW CASH FLOW ($M) ($M) DEBT SUMMARY ($M) $1,216 Maturity Q1 Q1 2020 2019 Net Income $ 19 $ 56 $800 $300 @ 2023 66% Fixed Amortization 16 15 $500 @ 2028 Subtotal $ 35 $ 71 Depreciation 10 8 $416 Capital Expenditures (10) (9) 34% Variable 2023 Working Capital (66) (8
Slide 12: Withdrawing 2020 Guidance; Scenario Planning
Withdrawing 2020 Guidance; Scenario Planning The Company is withdrawing its previous 2020 financial guidance due to the rapidly changing environment as the COVID-19 pandemic evolves • Will evaluate providing guidance later in the year Seeing current demand environment pointing to Mild to Moderat
Slide 13: Summary
Summary Near-term goals focused on employees, customers and emerging stronger Executing on downturn plan focused on ~$50 million in expected cost reductions Well-positioned with a healthy capital structure Remain focused on long-term strategy Confident in the actions we are taking to emerge stronger
Slide 14: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Slide 15: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the quarter ended March 31, 2020 excluding the effect of adjustments (Unaudited) In millions, except per-share data First Quarter Net sales $ 520.9 Net income 18.6 Provision for inco
Slide 16: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2019 excluding the effect of 2019 adjustments (Unaudited) In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Ful
Slide 17: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment for the quarter ended March 31, 2020 (Unaudited) Q1 Net Sales Growth Organic Currency Acq./Div. Total nVent (7.5%) (1.1%) 5.4% (3.2%) Enclosures (8.3%) (1