Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q4 2023 Earnings Presentation
24 slides from Nvent Electric's earnings presentation, Feb 6, 2024
Slide 1: nVent Fourth Quarter and Full-Year 2023 Earnings Presentation
nVent Fourth Quarter and Full-Year 2023 Earnings Presentation February 6, 2024 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 Q4 sales and exceeded adjusted EPS guidance Another quarter of impressive ROS expansion and robust free cash flow Delivered 12% sales growth and 28% adjusted EPS growth in 2023 High-growth verticals, new products and acquisitions are key drivers Well positioned for sales and prof
Slide 4: Q4 and Full-Year 2023 Summary
Q4 and Full-Year 2023 Summary ▪ Sales of $861 million, up 16% and 2% organically ▪ Segment income of $189 million, up 31%; ROS of 22.0%, up 260 bps year-over-year; all segments expanded ROS Q4 2023 ▪ Adjusted EPS of $0.78, up 18% ▪ Free cash flow generation of $215 million, up 19% year-over-year ▪ S
Slide 5: Q4 2023 nVent Performance
Q4 2023 nVent Performance Sales ($M) Financial Highlights (YoY) $99 $8 $861 $742 $27 ▪ Sales up 16%, organically up 2% $(14) - Price added 4 points to growth - Acquisitions added 13 points to growth +16% YoY ▪ Segment income up 31% (2) pts 4 pts 13 pts 1 pt - Year-over-year ROS expansion of 260 bps
Slide 6: Q4 2023 Segment Performance
Q4 2023 Segment Performance ($M) Sales Segment Income Commentary Organic sales growth, led by Infrastructure and Comm/Resi Enclosures $402 $85 North America sales growth led, up mid-single digits Up 7% Up 17% Up 4% organic ROS 21.1% (+190bps) Data Solutions sales up strong double digits with o
Slide 7: Full-Year 2023 nVent Performance
Full-Year 2023 nVent Performance Sales ($M) Financial Highlights (YoY) $253 $0 $3,264 $2,909 $151 ▪ Sales up 12%, organically up 3% $(49) - Price added 5 points to growth - Acquisitions added 9 points to growth +12% YoY ▪ Segment income up 38% (2) pts 5 pts 9 pts 0 pts - Year-over-year ROS expansion
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,793 Maturity Q4 YTD 2023 2023 $500 @ 2028 $1,300 73% Fixed $300 @ 2031 Net Income $ 255 $ 567 Amortization 25 90 $500 @ 2033 Subtotal $ 280 $ 657 $493 27% Variable 2026-2028 Depreciation 16 52 Q4 ’23 Weighted Average Rate ~5% Capital Ex
Slide 9: 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 $71 ▪ Acquisitions a top ▪ Returned ~$178 million EBITDA ratio at 2.1X million, up 55% priority in cash to shareholders ▪ Target of 2.0X to 2.5X ▪ Capacity e
Slide 10: 2024 nVent Outlook
2024 nVent Outlook Total nVent Expected Drivers Guidance ▪ Secular tailwinds in electrification, sustainability and digitalization Up 8% to 10% reported ▪ Volume growth and positive price Sales Up 3% to 5% organic ▪ Price and productivity offsetting inflation ▪ Investments in capacity, new products
Slide 11: Q1 2024 nVent Outlook
Q1 2024 nVent Outlook Q1 ’24 Q1 ’23 Other Items Reported sales Up 16% to 18% $741M Tax rate ~23% Organic sales Up 2% to 4% 8% Net interest expense ~$24M EPS (reported) $0.61 to $0.63 $0.56 Shares ~168M EPS (adjusted) $0.72 to $0.74 $0.67 Expected Drivers ▪ Expect acquisitions to add ~13 points to sa
Slide 12: Strong Financial Track Record
Strong Financial Track Record 18% 28% 27% 15% CAGR* CAGR* CAGR* CAGR* +9% +9% +4% +8% to 10% +8% to 11% +4%to to 7% >$0.5B >$0.5B 11% 12% 7% 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E 2020 2021 2022 2023 2024E Sales ($B) Segment Income ($M) Adjusted EPS ($) Free Ca
Slide 13: Strong Value Creation
Strong Value Creation Building Strong Industry Leading Strong Secular Tremendous Growth Creating Value through Track Record Products and Solutions Tailwinds Opportunities Capital Allocation ▪ Strong growth with focus ▪ Strong brands with ▪ Electrification, ▪ Growth acceleration via ▪ Ample room to g
Slide 14: Recognized for Our People and Our Work
Recognized for Our People and Our Work Proud of our culture, people and ESG progress Q4 ’23 Earnings Presentation ©2023 Fortune Media IP Limited. All rights reserved. Used under license. 14
Slide 15: Summary
Summary ▪ Another year of double-digit sales and earnings growth ▪ Expect strong sales and profit growth with robust cash flow in 2024 ▪ Well positioned with electrification, sustainability and digitalization trends 1 5 Our future is bright Q4 ’23 Earnings Presentation 15
Slide 16: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 16 16
Slide 17: Reported to Adjusted 2023 Reconciliation
Reported to Adjusted 2023 Reconciliation Q4 ’23 Earnings Presentation 17
Slide 18: Reported to Adjusted 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q4 ’23 Earnings Presentation 18
Slide 19: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation Q4 ’23 Earnings Presentation 19
Slide 20: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation Q4 ’23 Earnings Presentation 20
Slide 21: Reported to Adjusted 2024 Reconciliation
Reported to Adjusted 2024 Reconciliation Q4 ’23 Earnings Presentation 21
Slide 22: Organic Sales Growth and Free Cash Flow Reconciliation 2023
Organic Sales Growth and Free Cash Flow Reconciliation 2023 Q4 ’23 Earnings Presentation 22
Slide 23: 2022 Organic Sales Growth Reconciliation
2022 Organic Sales Growth Reconciliation Q4 ’23 Earnings Presentation 23
Slide 24: Free Cash Flow Reconciliation 2021 & 2020
Free Cash Flow Reconciliation 2021 & 2020 Q4 ’23 Earnings Presentation 24