Nvent Electric Plc · NYSE:NVT
Nvent Electric — Q1 2023 Earnings Presentation
18 slides from Nvent Electric's earnings presentation, Apr 28, 2023
Slide 1: nVent First Quarter 2023 Earnings Presentation
nVent First Quarter 2023 Earnings Presentation April 28, 2023 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 Delivered 7% sales growth and 34% adjusted EPS growth in Q1 Continued strong execution with impressive year-over-year ROS expansion and robust free cash flow in Q1 Announced agreement to acquire ECM Industries, adding to our electrical power connection and grounding solutions portfolio
Slide 4: Q1 2023 Summary
Q1 2023 Summary ▪ Sales of $741 million, up 7% and 8% organically ▪ Segment income of $148 million, up 34%; ROS of 20%, up 410 bps year-over-year Q1 2023 ▪ Adjusted EPS of $0.67, up 34% ▪ Free cash flow generation of $52 million, compared to $3 million usage a year ago ▪ Organic sales growth across
Slide 5: Q1 2023 nVent Performance
Q1 2023 nVent Performance Sales ($M) Financial Highlights (YoY) $57 $0 $741 $695 $2 ▪ Sales up 7%, organically up 8% $(13) - Price added 8 points to growth - FX headwind of 2 points +7% YoY ▪ Segment income up 34% +0 pts 8 pts 0 pts (2)pts - Year-over-year ROS expansion of 410 bps Q1 ’22 Volume Pric
Slide 6: Q1 2023 Segment Performance
Q1 2023 Segment Performance ($M) Sales Segment Income Commentary Double digit organic sales growth in all verticals Enclosures $391 $82 Robust sales growth in North America and Europe Up 9% Up 64% Up 11% organic ROS 21.1% (+710bps) Volume and price contributed to sales growth ROS expansion f
Slide 7: Balance Sheet and Cash Flow
Balance Sheet and Cash Flow Cash Flow ($M) Debt Summary ($M) $1,085 Maturity Q1 2023 $500 @ 2028 $800 74% Fixed Net Income $ 94 $300 @ 2031 Amortization 18 Subtotal $ 112 $285 26% Variable 2026 Depreciation 11 Q1 ‘23 Weighted Average Rate ~4% Capital Expenditures (17) Note: Does not include $303 of
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 ▪ Target ROIC > WACC ▪ Maintain a EBITDA ratio at 1.3X $55 to $60 million in in 2 to 3 years competitive dividend ▪ Target of 2.0X to 2.5X 2023 ▪ ECM Industr
Slide 9: 2023 nVent Outlook
2023 nVent Outlook* Total nVent Expected Drivers Guidance as of 02/07/23 Updated Guidance ▪ Secular tailwinds continue in electrification Up 3% to 5% Up 4% to 6% ▪ Price realization offsetting inflation Sales Up 4% to 6% organic Up 4% to 6% organic ▪ Supply chain improvements ▪ Investments in capaci
Slide 10: Q2 2023 nVent Outlook
Q2 2023 nVent Outlook* Q2 ‘23 Q2 ‘22 Other Items Reported sales Up 3% to 5% $728M Tax rate ~18.5% Organic sales Up 3% to 5% 21% Net interest expense ~$10M EPS (reported) $0.57 to $0.59 $0.48 Shares ~168M EPS (adjusted) $0.66 to $0.68 $0.57 Expected Drivers ▪ Continued strong price realization offset
Slide 11: nVent Strategy: Strategic Drivers
nVent Strategy One nVent Strategic Drivers High-growth New products and Global growth verticals innovation Grow Acquisitions and partnerships Productivity and Transform Digital acceleration Working capital velocity Focused on growth and performance to drive value Q1 ’23 Earnings Presentation 11
Slide 12: Acquisition of ECM Industries
Acquisition of ECM Industries Strategic Fit Leading provider of electrical connectors, tools and test ▪ Complementary power connection and grounding solutions portfolio instruments, and cable management ▪ Extends nVent’s cable management offering with complementary products and adds tools and test i
Slide 13: Summary
Summary ▪ Strong quarter with sales and adjusted EPS exceeding guidance ▪ Excited to add ECM Industries to our portfolio ▪ Well positioned with electrification, sustainability and digitalization trends 1 3 Our future is bright Q1 ’23 Earnings Presentation 13
Slide 14: Appendix and GAAP to Non-GAAP Measurements & Reconciliations
Appendix and GAAP to Non-GAAP Measurements & Reconciliations 14 14
Slide 15: Reported to Adjusted 2023 Reconciliation
Reported to Adjusted 2023 Reconciliation Q1 ’23 Earnings Presentation 15
Slide 16: Reported to Adjusted 2022 Reconciliation
Reported to Adjusted 2022 Reconciliation Q1 ’23 Earnings Presentation 16
Slide 17: Organic Sales Growth and Free Cash Flow Reconciliation
Organic Sales Growth and Free Cash Flow Reconciliation Q1 ’23 Earnings Presentation 17
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Q1 ’23 Earnings Presentation 18