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nVent Electric — Presentation PDF (company IR deck)
nVent Electric (NVT) · 18 slides · Filed Oct 30, 2026
Every slide of this earnings presentation, with the text as published. Open the original deck ↗ · All NVT deck slides
Slide 1 — First Quarter 2018
nVent First Quarter 2018 Earnings Presentation
Slide 2 — Forward Looking Statement
Forward Looking Statement 2 Q1’18 Earnings Presentation 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 historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "targets," "plans," "believes," "expects," "intends," "will," "likely," "may," "anticipates," "estimates," "projects," "should," "would," "positioned," "strategy," "future" or words, phrases or terms of similar substance or the negative thereof, are forward-looking statements. All projections in this presentation are also forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the ability to satisfy the necessary conditions to consummate the planned separation of our Electrical business and the Water business of Pentair plc into two independent, publicly- traded companies (the "Separation") on a timely basis or at all; the ability to successfully separate our business and realize the anticipated benefits from the Separation; adverse effects on our business operations or financial results as a result of the announcement or consummation of the Separation; unanticipated transaction expenses, such as litigation or legal settlement expenses; changes in tax laws; the impact of the Separation on our employees, customers and suppliers; overall global economic and business conditions impacting our businesses; the ability of our business to operate independently following the Separation; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions; competition and pricing pressures in the markets we serve; the strength of housing and related markets; volatility in currency exchange rates and commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; increased risks associated with operating foreign businesses; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term strategic operating goals. Additional information concerning these and other factors is contained in our filings with the SEC, including our Registration Statement on Form 10. All forward-looking statements speak only as of the date of this presentation. nVent Electric plc assumes no obligation, and disclaims any obligation, to update the information contained in this presentation. The officer titles for individual speakers set forth in this presentation are the titles such persons are expected to have at nVent Electric plc after the completion of the Separation.
Slide 3 — Key Definitions
Key Definitions 3 Q1’18 Earnings Presentation Except as Otherwise Noted, All References to nVent and All Amounts Included Herein Represent the Pentair Electrical Business Excluding the Pentair Water Business, Presented on an Adjusted Basis “Organic Sales" Refers to GAAP Revenue Excluding (1) the Impact of Currency Translation and (2) the Impact of Revenue from Acquired Businesses Recorded Prior to the First Anniversary of the Acquisition Less the Amount of Sales Attributable to Divested Product Lines Not Considered Discontinued Operations Segment Income Represents Operating Income Exclusive of Non-Cash Intangible Amortization, Certain Acquisition Related Expenses, Costs of Restructuring Activities, Impairments, and Other Unusual Non-Operating Items Return on Sales ("ROS") Equals Segment Income Divided by Sales The 2018 Full Year and Q2 Outlook Included Herein Reflects the Anticipated Separation of nVent from Pentair on April 30, 2018 See Appendix for GAAP to Non-GAAP Reconciliations
Slide 4 — Executive Summary
4 Q1’18 Earnings Presentation Executive Summary Delivered on Our Commitments Q1’18 Spin Update 2018 Outlook Organic Sales Grew 3% ROS for the Electrical Segment was 19.7%* Enclosures Strong Growth and Sequential Margin Improvement Spin Day Expected to be April 30th Pentair Board of Directors Approved Spin Financing in Place Outlook Remains the Same 2-4% Organic Sales Growth ROS Flat YOY, Including Growth Investment *Excludes corporate costs of ~12M; including corporate costs ROS was 17.4%
Slide 5 — Q1’18 nVent Performance
Q1’18 nVent Performance 5 Q1’18 Earnings Presentation Sales ($ in millions) Financial Highlights (yoy) Segment Income** ($ in millions) Organic sales up 3% • Enclosures: Up 9% • Thermal Management: Down 4% • EFS: Up 1% Pro Forma Segment Income up 5%** Pro Forma ROS at 17.4% (19.7% Excluding Corporate Costs of ~$12M) Other Items • Adjusted Tax Rate of 18% • Pro Forma Net Int./Other Exp. of $7M • Pro Forma Shares 181.5M Pro Forma Free Cash Flow $27M $13 $502 $3 $0 $21 $539 Q1'17 FX Q1’18 Price Volume Acq. 2 pts 1 pts 0 pts 4 pts ~7% YoY $15* $17 $89 $3 ($13) ($2) $94 $15* ROS 17.7% ROS 17.4% Q1'17 Q1’18 Prod. Inflation Growth/ Price/Acq. FX ~5% YoY 2.9% (0.2%) (2.6%) (0.4%) *Non-Cash Amortization **Includes Corporate Costs of ~$12M
Slide 6 — Q1’18 Segment Performance
$26 $34 Q1'17 Q1'18 ROS 17.9% ROS 22.7% 6 Q1’18 Earnings Presentation Q1’18 Segment Performance Solid Start to the Year Enclosures ($ in millions) Thermal Management ($ in millions) EFS ($ in millions) Productivity Gains Continued MRO Strength Projects Lagging Slow Start to the Year Positive Price/Cost Strong Order Flow $227 $254 Q1'17 Q1'18 Sales $145 $148 Q1'17 Q1'18 Sales $130 $137 Q1'17 Q1'18 Sales $40 $41 Q1'17 Q1'18 ROS 16.0% ROS 17.8% $32 $32 Q1'17 Q1'18 ROS 23.2% ROS 24.3% Sequential ROS up ~100bp Broad Based Growth in Verticals and Geographies Segment Income Segment Income Segment Income +5% Flat +29% +1% +2% +12%
Slide 7 — Separation Update
7 Q1’18 Earnings Presentation Separation Update nVent (NYSE: NVT) Expected to Begin Trading on May 1 February 13, 2018 Investor and Analyst Day Pentair Board of Directors Approved April 3, 2018 Form 10 Effective April 9, 2018 Board of Directors Announced Enterprise Separation Activities on Track
Slide 8 — Q2’18 nVent Pro Forma Outlook
8 Q1’18 Earnings Presentation Q2’18 nVent Pro Forma Outlook Executing on Our Plan Summary Other Considerations Continued Sales Strength Sequential ROS Improvement Actively Managing Price/Cost Tax Rate: ~18% Pro Forma Net Interest/Other Expense: ~ 11M Pro Forma Shares: ~181M Q2’18 Guidance Q2’17 Organic Sales +2% - 4% $513M Segment Income* +1% - 3% $106M ROS* 18% - 20% 20.6% EPS (reported) $0.33 - $0.36 EPS (adjusted) $0.41 - $0.44 *Includes corporate costs
Slide 9 — Full Year 2018 nVent Pro Forma Outlook
9 Full Year 2018 nVent Pro Forma Outlook On Track to Deliver 2018 Enclosures Thermal Mgmt. EFS Total Organic Sales Up 3-5% Up 0-2% Up 2-4% Up 2-4% ROS ~Flat +50-70bps +30-50bps ~Flat Corporate Expenses ~$45M Int. Exp./Other ~$43M Tax Rate ~18% Reported EPS $1.38 - $1.48 Adjusted EPS $1.70 - $1.80 Shares ~181M Q1’18 Earnings Presentation Key Considerations • FX Sales Benefit of ~1% • ROS Inclusive of Growth Investments • Total D&A of ~$100M + ~$13M of Non-Cash Stock Compensation • Strong Q1 Operating Performance and Lower Share Count Largely Offset Higher Int. Exp. • Target Free Cash Flow at 100% of Adjusted Net Income
Slide 10 — Summary
10 Q1’18 Earnings Presentation Summary Building a High Performance Growth Company We have industry leading positions in growing verticals We have attractive segments with differentiated growth opportunities We have a clear strategy and are focused on driving organic growth Our One nVent approach can accelerate performance We have consistent and strong free cash flow generation We are a Leader in Connection and Protection
Slide 11 — Appendix
Appendix GAAP to Non-GAAP Measurements & Reconciliations
Slide 12 — Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation 12 Q1’18 Earnings Presentation Actual First Quarter Net sales 538.9 $ approx 540 $ approx 2,208 $ Operating income 65.6 approx 92 approx 356 % of net sales 12.2% approx 17% approx 16% Adjustments: Restructuring and other 2.8 approx - approx 3 Intangible amortization 15.4 approx 15 approx 61 Separation costs 9.7 approx - approx 10 Segment income 93.5 approx 107 approx 430 Return on sales 17.4% approx 20% approx 20% Net income - as reported approx 65 approx 260 Interest expense adjustment - pro forma approx 2 approx (4) Adjustments to operating income approx 15 approx 74 Income tax adjustments approx (3) approx (13) Net income - pro forma adjusted approx 79 $ approx 317 $ Diluted earnings per ordinary share - pro forma adjusted Diluted weighted average ordinary shares outstanding - pro forma approx 181 approx 181 Diluted earnings per ordinary share - pro forma approx $0.33-$0.36 approx $1.38-$1.48 Adjustments 0.08 0.32 Diluted earnings per ordinary share - pro forma adjusted approx $0.41-$0.44 approx $1.70-$1.80 nVent Electric plc Reconciliation of the GAAP year ended December 31, 2018 to the non-GAAP excluding the effect of 2018 adjustments (Unaudited) In millions, except per-share data Forecast Second Quarter Full Year
Slide 13 — Reported to Adjusted 2017 Reconciliation
Reported to Adjusted 2017 Reconciliation 13 Q1’18 Earnings Presentation First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales 502.2 $ 513.2 $ 540.6 $ 541.9 $ 2,097.9 $ Operating income 67.6 89.6 95.9 63.0 316.1 % of net sales 13.5% 17.5% 17.7% 11.6% 15.1% Adjustments: Restructuring and other 9.3 3.7 - - 13.0 Intangible amortization 15.3 15.3 15.4 15.4 61.4 Trade name impairment - - - 16.4 16.4 Separation costs - 2.2 4.7 9.2 16.1 Corporate allocations (3.5) (5.0) (2.1) (2.9) (13.5) Segment income 88.7 105.8 113.9 101.1 409.5 Return on sales 17.7% 20.6% 21.1% 18.7% 19.5% nVent Electric plc Reconciliation of the GAAP year ended December 31, 2017 to the non-GAAP excluding the effect of 2017 adjustments (Unaudited) In millions
Slide 14 — Reported to Adjusted 2016 Reconciliation
Reported to Adjusted 2016 Reconciliation 14 Q1’18 Earnings Presentation First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales 524.5 $ 540.7 $ 543.1 $ 507.7 $ 2,116.0 $ Operating income 85.6 86.2 91.6 69.4 332.8 % of net sales 16.3% 15.9% 16.9% 13.7% 15.7% Adjustments: Restructuring and other 0.2 3.7 7.1 1.3 12.3 Intangible amortization 15.2 15.2 15.2 15.2 60.8 Trade name impairment - - - 13.3 13.3 Corporate allocations (3.0) (3.0) (3.1) (3.1) (12.2) Segment income 98.0 102.1 110.8 96.1 407.0 Return on sales 18.7% 18.9% 20.4% 18.9% 19.2% nVent Electric plc Reconciliation of the GAAP year ended December 31, 2016 to the non-GAAP excluding the effect of 2016 adjustments (Unaudited) In millions
Slide 15 — 2017 Segment Sales and Income by Quarter
2017 Segment Sales and Income by Quarter 15 Q1’18 Earnings Presentation First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales Enclosures 226.5 $ 234.1 $ 241.7 $ 232.6 $ 934.9 $ Thermal Management 145.4 139.9 159.1 177.8 622.2 Electrical & Fastening Solutions 130.3 139.2 139.8 131.5 540.8 Combined 502.2 $ 513.2 $ 540.6 $ 541.9 $ 2,097.9 $ Segment income (loss) Enclosures 40.3 $ 45.6 $ 44.1 $ 34.6 $ 164.6 $ Thermal Management 26.0 27.6 43.3 50.4 147.3 Electrical & Fastening Solutions 31.7 41.3 35.2 32.5 140.7 Other (9.3) (8.7) (8.7) (16.4) (43.1) Combined 88.7 $ 105.8 $ 113.9 $ 101.1 $ 409.5 $ Return on sales Enclosures 17.8% 19.5% 18.2% 14.9% 17.6% Thermal Management 17.9% 19.7% 27.2% 28.3% 23.7% Electrical & Fastening Solutions 24.3% 29.7% 25.2% 24.7% 26.0% Combined 17.7% 20.6% 21.1% 18.7% 19.5% nVent Electric plc Supplemental Financial Information by Reportable Segment (Unaudited) In millions 2017
Slide 16 — 2016 Segment Sales and Income by Quarter
2016 Segment Sales and Income by Quarter 16 Q1’18 Earnings Presentation First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales Enclosures 225.4 $ 238.3 $ 235.1 $ 212.4 $ 911.2 $ Thermal Management 179.4 161.8 174.0 177.0 692.2 Electrical & Fastening Solutions 119.7 140.6 134.0 118.3 512.6 Combined 524.5 $ 540.7 $ 543.1 $ 507.7 $ 2,116.0 $ Segment income (loss) Enclosures 42.8 $ 51.6 $ 52.9 $ 37.1 $ 184.4 $ Thermal Management 35.7 20.0 31.1 36.7 123.5 Electrical & Fastening Solutions 34.0 41.6 38.5 30.8 144.9 Other (14.5) (11.1) (11.7) (8.5) (45.8) Combined 98.0 $ 102.1 $ 110.8 $ 96.1 $ 407.0 $ Return on sales Enclosures 19.0% 21.7% 22.5% 17.5% 20.2% Thermal Management 19.9% 12.4% 17.9% 20.7% 17.8% Electrical & Fastening Solutions 28.4% 29.6% 28.7% 26.0% 28.3% Combined 18.7% 18.9% 20.4% 18.9% 19.2% nVent Electric plc Supplemental Financial Information by Reportable Segment (Unaudited) In millions 2016
Slide 17 — Q1 and FY 2018 Organic Sales Growth Reconciliation
Q1 and FY 2018 Organic Sales Growth Reconciliation 17 Q1’18 Earnings Presentation Organic Currency Acq./Div. Total nVent 3.1% 4.2% —% 7.3% Enclosures 8.9% 3.3% —% 12.2% Thermal Management (4.2%) 5.9% —% 1.7% Electrical & Fastening Solutions 1.3% 3.6% 0.2% 5.1% nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment for the quarter ended March 31, 2018 (Unaudited) Q1 Net Sales Growth nVent Electric plc Reconciliation of Net Sales Growth to Organic Net Sales Growth by Segment for the Quarter Ending June 30, 2018 and the Year ending December 31, 2018 (Unaudited) Forecast Organic Currency Acq./Div. Total Organic Currency Acq./Div. Total nVent approx 2 - 4% 1% —% 3 - 5% approx 2 - 4% 1% —% 3 - 5% Enclosures approx 3 - 5% 1% —% 4 - 6% Thermal Management approx 0 - 2% 1% —% 1 - 3% Electrical & Fastening Solutions approx 2 - 4% 1% —% 3 - 5% Q2 Net Sales Growth Full Year Net Sales Growth
Slide 18 — Free Cash Flow Reconciliation
Free Cash Flow Reconciliation 18 Q1’18 Earnings Presentation March 31, 2018 March 31, 2017 Free cash flow Net cash provided by (used for) operating activities - as reported 36.1 $ 87.1 $ Interest expense - pro forma 6.2 15.9 Net cash provided by (used for) operating activities - pro forma 29.9 71.2 Capital expenditures (5.4) (11.3) Proceeds from sale of property and equipment 2.3 - Free cash flow - pro forma 26.8 $ 59.9 $ nVent Electric plc Reconciliation of the GAAP operating activities cash flow to the non-GAAP free cash flow (Unaudited) In millions Three months ended