Slide 1: nVent Fourth Quarter and Full-Year 2021 Earnings Presentation
nVent Fourth Quarter and Full-Year 2021 Earnings Presentation February 8, 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 ▪ Exceeded Q4 sales and adjusted EPS guidance with robust free cash flow ▪ Continued strong execution in challenging inflationary and supply chain environment ▪ Delivered 23% sales growth and 31% adjusted EPS growth for the full year 2021 ▪ Double-digit orders and sales momentum positio
Slide 4: Q4 and Full-Year 2021 Summary
Q4 and Full-Year 2021 Summary ▪ Sales of $669 million, up 28% and 24% organically ▪ ROS of 16.5%, down 210bps Q4 2021 ▪ Adjusted EPS of $0.50, up 16% year-over-year ▪ Free cash flow of $101 million, ~120% conversion of adjusted net income ▪ Sales of $2.5 billion, up 23% and 18% organically; acquisit
Slide 5: Q4 2021 nVent Performance
Q4 2021 nVent Performance Sales ($M) Financial Highlights (YoY) $62 $25 $669 ▪ Sales up 28%, organically up 24% $65 $(4) $521 - Volume and price each added 12 points of growth +28% YoY - Acquisitions added 5 points ▪ Price offset inflation ~12 pts ~12 pts ~5 pts ~(1) pt ▪ Segment income up 14% Q4 ’2
Slide 6: Q4 2021 Segment Performance
Q4 2021 Segment Performance ($M) Sales Segment Income Commentary Strong growth across all verticals Enclosures $332 $43 All regions grew strong double digits Up 44% Up 22% Acquisitions contributed 11 points to sales growth Up 35% organic ROS 13.0% (-240bps) ─ Higher inflation and supply chain
Slide 7: Full-Year 2021 nVent Performance
Full-Year 2021 nVent Performance Sales ($M) Financial Highlights (YoY) $142 $56 $39 $2,462 ▪ Sales up 23%, organically up 18% $226 $1,999 - Volume added 11 points of growth; price added 7 points +23% YoY - Acquisitions added 3 points ▪ Price nearly offset inflation ~11 pts ~7 pts ~3 pts ~2 pts ▪ Seg
Slide 8: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,006 Maturity Q4 FY 2021 2021 $500 @ 2028 $800 80% Fixed Net Income $ 67 $ 273 $300 @ 2031 Amortization 18 68 Subtotal $ 85 $ 341 $206 20% Variable 2026 Depreciation 11 41 Q4 ‘21 Weighted Average Rate ~3.4% Capital Expenditures (14) (40)
Slide 9: Capital Allocation Update
Capital Allocation Update Manage Reinvest in Return Excess Cash M&A Leverage the Business to Shareholders ▪ Net debt to adjusted ▪ Full-year capex of $40 ▪ Acquisitions remain a top ▪ Maintain competitive EBITDA ratio at 2.0X million in 2021 priority dividend ‒ Acquisitions and strategic ▪ Target of
Slide 10: 2022 nVent Outlook
2022 nVent Outlook Total nVent Expected Drivers Guidance ▪ Strong order trends and record backlog Up 6% to 10% ▪ Supply chain challenges impacting margins in first half Sales Up 6% to 9% organic ▪ Strong price realization to help offset inflation ▪ Continued investments in new products and digital A
Slide 11: Q1 2022 nVent Outlook
Q1 2022 nVent Outlook Q1 ’22 Q1 ’21 Other Items Reported sales Up 13% to 15% $549M Tax rate 17% to 18% Organic sales Up 10% to 12% Net interest expense ~$8M EPS (reported) $0.33 to $0.35 $0.39 Shares ~170M EPS (adjusted) $0.42 to $0.44 $0.43 Expected Drivers ▪ Continued broad-based sales growth acro
Slide 12: 2022 nVent Vertical Assumptions
2022 nVent Vertical Assumptions Industrial 43% Comm/Resi 28% Infrastructure 21% Energy 8% Aerospace Education Datacom Downstream Automotive Healthcare E-mobility / EV Oil & Gas Defense Hospitality Power Utilities Food & Beverage Offices General Electronics Rail and Tran
Slide 13: nVent Strategy
nVent Strategy One nVent STRATEGIC DRIVERS High-Growth New Products Global Growth Verticals and Innovation Grow Acquisitions and Partnerships Productivity Transform Digital Acceleration Working Capital and Velocity Executing on our strategy to drive performance and value Q4 ’21 Earnings Presentation
Slide 14: Expanding in High-Growth Verticals: Data Networking Solutions
Expanding in High-Growth Verticals: Data Networking Solutions High-growth vertical Solving complex customer problems New products and innovation ▪ Advanced liquid cooling ▪ Accelerating growth through ~$220M ▪ Smart power solutions ▪ Global supply chain acquisitions and strategic alliances sales in
Slide 15: ESG: Driving Positive Impacts
ESG: Driving Positive Impacts OUR FOCUS OUR PROGRESS ESG Recognition ✓ Increased representation of women in management globally ✓ Increased representation of racially diverse U.S. PEOPLE professional employees ✓ Improved employee safety total recordable incident rate ✓ Integrated ESG into New Produc
Slide 16: Summary
Summary ▪ Executed well in 2021, with momentum from Q4 ▪ Deploying capital to drive growth and attractive returns ▪ Well positioned for the electrification of everything The future is bright Q4 ’21 Earnings Presentation 16
Slide 17: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 17 17
Slide 18: Reported to Adjusted 2021 Reconciliation
Reported to Adjusted 2021 Reconciliation Q4 ’21 Earnings Presentation 18
Slide 19: Reported to Adjusted 2020 Reconciliation
Reported to Adjusted 2020 Reconciliation Q4 ’21 Earnings Presentation 19
Slide 20: Reported to Adjusted 2019 Reconciliation
Reported to Adjusted 2019 Reconciliation Q4 ’21 Earnings Presentation 20
Slide 21: Reported to Adjusted 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q4 ’21 Earnings Presentation 21
Slide 22: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q4 ’21 Earnings Presentation 22