Slide 1: Fourth Quarter and Full-Year 2018 Earnings Presentation
nVent Fourth Quarter and Full-Year 2018 Earnings Presentation January 31, 2019
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: Executive Summary
Executive Summary Sales of $568 million grew 6% organically ROS was 19.1%; Segment Income grew 7% Q4 ‛18 Adjusted EPS of $0.45 Repurchased ~$60 million of shares Sales of $2.2 billion grew 5% organically Full-Year ROS was 19.1%; Adjusted EPS of $1.74 2018 Delivered strong pro forma Fre
Slide 4: nVent Strategy
nVent Strategy One nVent Accelerate Focus on Attractive Grow Globally and in Innovation and Verticals Developing Regions Connected Solutions Drive Productivity and Velocity Pursue Targeted Bolt-on Acquisitions Q4 ‛18 Earnings Presentation 4
Slide 5: Segment Highlights
Segment Highlights Electrical & Fastening Enclosures Thermal Management Solutions (“EFS”) Focus on Attractive Accelerate Innovation Accelerate Innovation Verticals and Connected and Grow Globally Solutions Data & Networking Solutions Elexant Controllers CADDY Seismic Bracing New commercial team
Slide 6: Q4 '18 nVent Performance
Q4 ‘18 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $14 $0 $568 Organic Sales up 6% $20 $542 ($8) ~5% Price + Productivity offset Inflation YoY Segment Income up 7% • Up 3% excluding corporate and other costs 4 pts 3 pts 0 pts -2 pts Q4 ’17 Volume Price Acq. FX Q4 ’18 A
Slide 7: Full-Year 2018 nVent Performance
Full-Year 2018 nVent Performance Sales ($ in millions) Financial Highlights (YoY) $37 $0 $16 $2,214 Organic Sales up 5% $63 $2,098 ~6% Segment Income up 3% YoY • Up 5% excluding corporate and other costs Adjusted EPS of $1.74 3 pts 2 pts 0 pts 1 pt FY ’17 Volume Price Acq. FX FY ’18 Pro form
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary Q4 YTD $948M Maturity 2018 2018 Net Income $ 67 $ 231 Amortization 15 61 $300M @ 2023 Subtotal $ 82 $ 292 $800M 84% Fixed $500M @ 2028 Depreciation 9 36 Capital Expenditures (11) (40) Working Capital 85 42 $148M 16% Variable 2023* Other Accrual
Slide 9: Q4 '18 Segment Performance
Q4 ‛18 Segment Performance ($M) Sales Segment Income Commentary Enclosures Strong growth in key verticals $251 $39 Up 8% Up 13% Sales growth exceeded expectations Up 9% Organic ROS 15.5% Year-over-year ROS expansion of 70 basis points Thermal Mgmt Industrial MRO and Commercial strength $179
Slide 10: Full-Year 2018 Segment Performance
Full-Year 2018 Segment Performance ($M) Sales Segment Income Commentary Enclosures Strong global, above industry growth $1,020 $175 Up 9% Up 6% Continued operational improvements Up 8% Organic ROS 17.1% ROS expansion in the second half of the year Thermal Mgmt Industrial MRO and Commercial s
Slide 11: Full-Year 2019 nVent Outlook
Full-Year 2019 nVent Outlook Total nVent Organic Sales by Segment Enclosures Up 2 - 4% Organic Up 2 - 4% Sales Thermal Up 2 - 6% Management ROS +40 - 60 bps EFS Up 2 - 4% Key Considerations Target FCF at 95 - 100% of Adjusted Net Income Reported: $1.52 - $1.62 Expect increase in corporate and ot
Slide 12: First Quarter 2019 nVent Outlook
First Quarter 2019 nVent Outlook Q1 ‘19 Q1 ‘18 Other Items Organic Sales +2% - 4% $539M Tax Rate ~18% EPS (reported) $0.29 - $0.33 $0.29 Net Interest Expense ~$11M EPS (adjusted) $0.36 - $0.40 $0.39 Shares ~179M Summary Expect continued sales acceleration in Thermal Management Currency expected
Slide 13: 2019 Priorities
2019 Priorities • Accelerate One nVent initiatives Organic Growth • Drive key verticals • Grow with new products Margin • Deliver price + productivity to offset inflation Expansion • Drive supply chain efficiencies Capital • Return cash in form of dividends and repurchases Allocation • Focus on accr
Slide 14: Capital Allocation Update
Capital Allocation Update Return Excess Reinvest in Manage Leverage M&A Cash to the business Shareholders • Net debt to • Capex of ~$40 • Focus on bolt-on • Generated Free EBITDA ratio at million in 2018 acquisitions Cash Flow of 1.7X with a target $301M in 2018* of 1.5 - 2.0X • Expect capex of • Ta
Slide 15: Summary
Summary We are a Leader in Connection and Protection Industry-leading positions and strong brands Attractive segments offering differentiated solutions Clear and proven strategy focused on driving organic growth One nVent approach accelerating performance Consistent and strong free cash fl
Slide 16: GAAP to Non-GAAP Measurements & Reconciliations
Appendix GAAP to Non-GAAP Measurements & Reconciliations
Slide 17: Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation Q4 ‛18 Earnings Presentation 17
Slide 18: Reported to Adjusted 2017 Reconciliation
Reported to Adjusted 2017 Reconciliation Q4 ‛18 Earnings Presentation 18
Slide 19: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation Q4 ‛18 Earnings Presentation 19
Slide 20: Organic Sales Growth & Free Cash Flow Reconciliation
Organic Sales Growth & Free Cash Flow Reconciliation Q4 ‛18 Earnings Presentation 20