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nVent Electric — Presentation PDF (company IR deck)
nVent Electric (NVT) · 42 slides · Filed Oct 30, 2026
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Slide 1 — nVent
nVent Investor Presentation April 2018
Slide 2 — Forward Looking Statement
Forward Looking Statement 2 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 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 (Adjusted EBITA) 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 — nVent Presenters
4 nVent Presenters Beth Wozniak Future Chief Executive Officer Stacy McMahan Future Chief Financial Officer • Current President of Pentair’s Electrical Segment with over 27 years of experience • Over 12 years of experience as President of various businesses including, President of Pentair’s Flow & Filtration Solutions business from 2015 – 2016 • President of Honeywell’s Environmental and Combustion Controls from 2011 – 2015; President of Sensing and Control Unit from 2006 – 2011 • Held several other executive and leadership positions at Honeywell and Allied Signal • Previously, CFO of Spectranetics Corporation from 2015 – 2017 • CFO and Treasurer of MSA Safety from 2013 – 2015 • 25 years of finance leadership and deep expertise in operations and business development at large, publicly held companies • Held several other executive and leadership positions at Johnson & Johnson and Thermo Fisher
Slide 5 — Spinoff Overview
5 *Fully diluted number per guidance provided on April 19, 2018 Spinoff Overview The Next Step in the Evolution of Pentair Ticker NVT Exchange NYSE Exchange Ratio 1 share of nVent for every share of Pentair Expected Number of Shares 181 Million* Record Date Declared April 3 When Issued Trading Date April 16 Record Date April 17 Distribution of nVent Shares April 30 First Day of Regular-way Trading May 1
Slide 6 — Rationale of Separation
6 Rationale of Separation The Next Step in the Evolution of Pentair RATIONALE FOUNDATION STRATEGIC FOCUS Improved Clarity into Performance and Growth Opportunities CAPITAL ALLOCATION FLEXIBILITY Unique Strategies to Deliver Growth for Each FINANCIAL STRENGTH Supports Plan to be Successful, Profitable, and Sustainable PIMS Pentair’s “Business System” MANAGEMENT TEAM Mix of Current & New Executives and Board Members to Lead CAPITAL STRUCTURE Expect Strong Balance Sheet and Financial Positioning
Slide 7 — Agenda
7 Agenda 1. Introduction to nVent 2. Strategic Priorities 3. Financial Overview Appendix: Supplementary Information
Slide 8 — 1. Introduction to nVent
1. Introduction to nVent
Slide 9 — Introduction to nVent
Introduction to nVent 3 Highly Profitable Business Segments 47 Mfg., Distribution & Service Facilities ~8,600 Employees 20% 2017 Return on Sales $334M 2017 Free Cash Flow Generation $2.1B 2017 Revenues 9
Slide 10 — 20%
Leading Electrical Company Focused on Connection & Protection Diversified Portfolio with Strong Financials Industrial Company Characteristics Verticals Segments Geographies US & Canada 65% Western Europe 22% Developing 11% Other Developed 2% 45% Infrastructure 12% Enclosures 44% Thermal Management 30% Electrical & Fastening Solutions 26% Commercial & Residential 27% Energy 16% Industry-leading positions and strong brands Focused on improving utilization, lowering costs and maximizing customer uptime Attractive margin profile Strong free cash flow generation 2017 Financials 20% Return on Sales (ROS) $2.1B Revenue 10
Slide 11 — Three Businesses of Scale with Leading Product Portfolios
11 Three Businesses of Scale with Leading Product Portfolios Thermal Management ($622M) Enclosures ($935M) Electrical & Fastening Solutions ($541M) Equipment Protection Building Infrastructure Solutions Industrial Heating Solutions Electronics Protection Fastening Solutions Electrical Solutions
Slide 12 — Mission-Critical Solutions That Create Value
Our Value and Differentiation Drive Customer Loyalty Our products… • Connect and protect across broad range of applications • Meet stringent regulatory standards and certifications Our products… • Protect equipment and electronics in hazardous environments • Help avoid the high cost of failure Hazardous Location Cooling Reduced facilities operating costs by ~75% Our products… • Reduce labor cost in installation • Improve utilization • Minimize downtime • Reduce total cost of ownership Rail Surge Protection Mission-Critical Solutions High Cost of Failure Customer Productivity & Total Cost of Ownership Stainless Steel Enclosures Purge and Pressurization Systems Mission-Critical Solutions That Create Value 12
Slide 13 — 13
13 Industry Leading Positions Premier Brands Recognized for Innovation, Quality and Reliability • A global leader in electric heat tracing solutions • A global leader in complete heat management systems • A global leader in electrical and fastening solutions • A leader in North American industrial enclosures • A leader in European electronic protection We are a Leader in Connection and Protection
Slide 14 — Evolution of Our Management System
Evolution of Our Management System Building on a Strong Foundation Introducing spark 14 Growth People Lean Enterprise Velocity Digital Growth Mindset, Commercial Excellence Energize Employees & Create Value Lean Information Flow Drive Velocity in Everything We Do Digitize the Customer Experience, Products and Processes
Slide 15 — 2. Strategic Priorities
2. Strategic Priorities
Slide 16 — The nVent Strategy
Drive Productivity & Velocity The nVent Strategy 16 One nVent Focus on Attractive Verticals Accelerate Innovation & Connected Solutions Grow Globally & in Developing Regions Pursue Targeted Bolt-on Acquisitions
Slide 17 — One nVent
17 One nVent Customers Aligned Go to Market Teams for Key Verticals Channels Key Partnerships and Account Management Capability Commercial Excellence Digital Digitizing the Customer Experience Scale Common Processes & Systems
Slide 18 — Focus on Attractive Verticals
18 Focus on Attractive Verticals Global Synchronous Growth in 2018 2018 Macro Outlook Commercial & Residential (27% of Sales) Industrial (45% of Sales) Energy (16% of Sales) Infrastructure (12% of Sales) Growth Focus • Lower cost of ownership and installation • Specification selling • Global new products • New products, global focus • Connected solutions & digital tools • MRO focus • Connected solutions • New products • Aligned go to market and key account penetration • New products Addressable Size ($B) Expected Growth ~$18 ~$22 ~$9 ~$11 ~4% ~3% ~3% ~4%
Slide 19 — Accelerate Innovation and Connected Solutions
19 Accelerate Innovation and Connected Solutions Innovative and Connected Solutions Addressing Unmet Needs • Unique low-smoke, halogen-free, and flame-retardant insulation • Reduces Total Installed Cost • Improves safety and reliability Thermal Commercial Controller Advanced Flexible Busbar Thermal Industrial Controller Integrated Liquid Cooling Solutions • Safe and reliable temperature control • Connected controls and monitoring solutions • Advanced connected controls platform for heat tracing and leak detection • Building Management System connectivity • Differentiated air to water and water to water high density heat exchangers • Critical need in datacenters for high density heat loads
Slide 20 — Grow Globally and in Developing Regions
Grow Globally and in Developing Regions Global Footprint Supports Global Growth Manufacturing Facilities Strategy: Europe: Expand products categories and brands that are underpenetrated in Europe Developing Regions: Enhance local capabilities and create localized products and solutions Key Actions: Expand sales and channel coverage globally (especially Europe and Asia) Drive incremental penetration through direct selling to global key accounts Develop regional products supported by local inventory and availability 20
Slide 21 — Drive Productivity and Velocity
21 Drive Productivity and Velocity Drive Productivity and Velocity Our Solid Foundation Lean Enterprise • Standard Work • Creating Flow • Strategy Deployment Digitization Standardization • ERP Systems • Processes Lean Enterprise • Lean Information Flow • Integrated Supply Chain Digital Transformation • Enterprise-wide platforms • Digital customer experience Continue Standardization • Across all processes Accelerating Performance
Slide 22 — Pursue Targeted Bolt-on Acquisitions
22 Pursue Targeted Bolt-on Acquisitions Well Prepared to Execute Appetite for M&A: • Flexible capital structure • Leverage target of 2x – 2.5x over the long-term • Ability to flex to 3x over a short period of time if the appropriate opportunity presents itself M&A Strategy - Key Considerations: • How does the target fit nVent’s strategy? • How compelling are the financials of the deal? • Why are we the right buyer? • What’s our integration plan? • Who’s the integration team?
Slide 23 — 3. Financial Overview
3. Financial Overview
Slide 24 — nVent Financial Overview
nVent Financial Overview 24 Key Metrics at Spin Net Leverage 2.2x Cash on Balance Sheet ~$50 million Tax Rate ~18% Capital Expenditures Low capital intensity (~2% of sales) Dividends Competitive dividend • Focus on establishing reliable growth • Favorable and competitive margin profile with ample opportunity for expansion • Consistent and robust cash flow generation targeting 100% of adjusted net income • Investment grade credit rating of BBB- and BBB from S&P and Fitch, respectively • Total debt of $1B, including $800M of senior notes • Undrawn revolver of $600M • Balanced capital deployment strategy Financial Profile
Slide 25 — nVent Financial Overview*
$344 $407 $410 2015 2016 2017 2018 Outlook 25 nVent Financial Overview* Expecting Solid Top Line and Adjusted EPS Growth Revenue ($B) Segment Income ($M) Pro Forma Adjusted EPS $1.81 $2.12 $2.10 2015 2016 2017 2018 Outlook 2018 Outlook $1.70-$1.80 • Interest/Other: ~$43M in 2018 • Tax rate: ~18% in 2018 • Share count: ~181M in 2018 Summary • Sales expected to be up 3-5%, 2-4% organic sales growth • Segment Income growth, inclusive of incremental growth investment • Target free cash flow = Adj. Net Income • Tax rate tailwind in 2018 +3-5% ~$430 *As of April 19, 2018
Slide 26 — Favorable Margin Profile with Opportunities for Expansion
Drive profitable growth • Commercial excellence • Pricing optimization • Product vitality acceleration Expand lean enterprise • Lean information flow • Integrated supply chain Driving common processes and systems ¹ Selected Electrical Peers include ABB, Acuity, Eaton, Hubbell, Rockwell Automation, Schneider Electric, and Thermon. Peer 2018E EBITA margins based on IBES median estimates as of 13-Apr-2018 and reported amortization projections from latest filings. Favorable Margin Profile with Opportunities for Expansion 26 Opportunity to Drive Margin Expansion $1,809 $2,116 $2,098 19% 20% 20% 2015 2016 2017 Sales ROS Competitive Margin vs Peers1 Current Margin Profile Sales ($ in millions) & ROS Established margin performance via: • Diversification • Growth in new regions and new products • MRO business mix • Lean enterprise 2018E Adj. EBITA Margin¹ (ROS) of Selected Electrical Peers
Slide 27 — Strong Cash Flow Generation
Strong Cash Flow Generation Consistent and Strong Free Cash Flow Generation • Target free cash flow at 100% of adjusted net income • Drive working capital velocity Free Cash Flow1 ($ in millions) Capital Expenditures ($ in millions) $47 $75 $32 2.6% 3.5% 1.5% 2015 2016 2017 Capex % of Sales (%) $252 $232 $334 109% 86% 115% 2015 2016 2017 Free Cash Flow % Adj. Net Income ¹Free cash flow represents net cash provided by operating activities, less capital expenditures, plus proceeds from sale of property and equipment. • Low capital intensity • Expect capital expenditures to equal depreciation 27
Slide 28 — Conservative Capital Structure and Allocation Philosophy
28 Conservative Capital Structure and Allocation Philosophy Committed and Disciplined • Target investment grade metrics • Balanced capital deployment strategy • Competitive dividend policy • Share repurchases to offset dilution at a minimum • Bolt-on acquisitions targeting focused growth areas
Slide 29 — Q1’18 nVent Performance
Q1’18 nVent Performance 29 Sales ($ 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 30 — Q2’18 nVent Pro Forma Outlook*
30 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 *As of April 19, 2018
Slide 31 — Full Year 2018 nVent Pro Forma Outlook*
31 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 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 *As of April 19, 2018
Slide 32 — Long-Term Financial Framework
Long-Term Financial Framework Long-Term Value Creation Goals Differentiated growth 1-2% above GDP Margin Expansion Top Tier Performance Free Cash Flow = 100% Adjusted Net Income Long-Term Goals 32 Revenue Segment Income EPS Cash Flow
Slide 33 — Investment Thesis
33 Investment Thesis Generate Shareholder Value with Leading Brands and a Competitive Playbook Mission-Critical Solutions Maximize Customer Efficiency Leading Industry Positions, Brands and Footprint Diversified Across Products, Verticals and Customers Strong Financial Profile and Operational Focus Strong Cash Flow Generation Conservative Capital Structure & Capital Allocation Philosophy Value Creation
Slide 34 — Appendix
Appendix
Slide 35 — nVent Leadership Team
35 nVent Leadership Team New Leadership Team in Place BETH WOZNIAK Chief Executive Officer TOM PETTIT EVP & Chief Integrated Supply Chain Officer JOE RUZYNSKI President Enclosures BRAD FAULCONER President Thermal Management STACY McMAHAN EVP & Chief Financial Officer LYNNETTE HEATH EVP & Chief Human Resources Officer JON LAMMERS EVP, General Counsel & Secretary BEN SOMMERNESS EVP, Chief Growth & Strategy Officer ROBERT Van der KOLK President EFS
Slide 36 — Enclosures Business Overview
Equipment Protection Electronic Protection Enclosures Business Overview Segment Description 2017A Sales Breakdown Illustrative Products Competitive Differentiators Geographies Strong Brand Recognition Deep history in our Hoffman and Schroff brands of quality and reliability Technical Expertise Specialized engineering expertise enables ability to deliver high performance, lower cost designs Customized, Flexible Product Platforms & Solutions Ability to tailor products and provide innovative solutions to meet complex customer requirements Broad Product Offering & Availability Broad enclosure, cooling, and accessory product offering. Strong availability through channel. 1 2 3 4 Verticals US & Canada 70% Other Developed 2% Developing 11% Western Europe 19% Industrial 60% Energy 11% Commercial 10% Infrastructure 19% Provides Innovative Solutions That Protect, Connect, and Manage Heat in Critical Electronics, Communication, Control, and Power Equipment ROS 18% 2017A Revenue $935M Steel, Non-Metallic & Plastic Enclosures Modular Enclosure Solutions Industrial Cooling Server Cabinets Data Center Cooling Solutions Power Supplies Subracks and Cases Innovative, Engineered Solutions that Protect and Manage Heat in Systems 36
Slide 37 — Thermal Management Business Overview
Thermal Management Business Overview Segment Description 2017A Sales Breakdown Illustrative Products Competitive Differentiators Geographies Strong Brand Recognition Deep and rich Raychem and Tracer history of innovative and high-quality products Technical Expertise Specialized engineering expertise enables delivery of high performance, lower cost & inventive designs Ease of Installation & Reduced Total Cost Highly Reliable and easy to install solutions that lower total cost of ownership Complete Solutions Offer one-stop shop and access to large portfolio with multi-tier offerings 1 2 3 4 Verticals Provides Electric Thermal Solutions that Connect and Protect Critical Buildings, Infrastructure, Industrial Processes and People US & Canada 55% Other Developed 2% Developing 14% Western Europe 29% Industrial 43% Energy 31% Commercial & Residential 26% Industrial Heating Solutions Building & Infrastructure Solutions Advanced Control and Monitoring Floor Heating Pipe Freeze Protection and Process Maintenance Heat Management 3D Design Fire Rated Wiring Cables Snow Melting & De-Icing Pipe Heating Pipeline Heating Complete and Connected Solutions for Optimal, Reliable Systems ROS 24% 2017A Revenue $622M 37
Slide 38 — Electrical & Fastening Business Overview
Electrical & Fastening Business Overview Segment Description 2017A Sales Breakdown Illustrative Products Competitive Differentiators Geographies Verticals Provides Electrical and Fastening Solutions that Connect and Protect Electrical and Mechanical Systems US & Canada 70% Other Developed 2% Developing 10% Western Europe 18% Commercial 57% Energy 10% Infrastructure 14% Industrial 19% Strong Brand Recognition Well positioned with Caddy and Erico as strong innovative brands across verticals and regions Technical Expertise Global end user application expertise and knowhow Ease of Installation & Reduced Total Cost Solutions significantly reduce installation costs and total cost of ownership with innovative designs Reliable Product Comprehensive range of innovative maintenance free and highly-reliable products 1 2 3 4 Innovative Solutions Saving Contractors Time and Money Fastening Solutions Electrical Solutions Stud Wall Brackets Pipe Hangers & Supports Spring Steel Fasteners Lightning Protection Data Cable Supports Low voltage power connections Exothermic Connections Grounding & Bonding ROS 26% 2017A Revenue $541M 38
Slide 39 — Reported to Adjusted 2018 Reconciliation
Reported to Adjusted 2018 Reconciliation 39 Actual First Quarter Net sales 539 $ approx 540 $ approx 2,208 $ Operating income 66 approx 92 approx 356 % of net sales 12% approx 17% approx 16% Adjustments: Restructuring and other 3 approx - approx 3 Intangible amortization 15 approx 15 approx 61 Separation costs 10 approx - approx 10 Segment income 94 approx 107 approx 430 Return on sales 17% 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 40 — Reported to Adjusted 2015-2017 Reconciliation
Reported to Adjusted 2015-2017 Reconciliation 40 2015 2016 2017 Net sales 1,809 $ 2,116 $ 2,098 $ Operating income 260 333 316 % of net sales 14% 16% 15% Adjustments: Restructuring and other 16 12 13 Intangible amortization 32 61 61 Trade name impairment - 13 16 Deal related costs and expenses 14 - - Inventory step-up 36 - - Separation costs - - 16 Corporate allocations (13) (12) (14) Segment income 344 407 410 Return on sales 19% 19% 20% Net income - as reported 210 259 362 Interest expense adjustment - pro forma (45) (62) (39) Adjustments to operating income 84 74 93 Pension and other post-retirement mark-to-market (gain) loss (13) 11 (3) Income tax adjustments (6) (11) (122) Net income - pro forma adjusted 231 $ 270 $ 291 $ nVent Electric plc Reconciliation of the GAAP Year Ended December 31, 2017, 2016 and 2015 to the non-GAAP Excluding the Effect of 2017, 2016 and 2015 Adjustments (Unaudited)
Slide 41 — Q1 and FY 2018 Organic Sales Growth Reconciliation
Q1 and FY 2018 Organic Sales Growth Reconciliation 41 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 Reportable 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 Reportable 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 42 — Cash Flow Reconciliation
Cash Flow Reconciliation 42 March 31, 2018 March 31, 2017 Free cash flow Net cash provided by (used for) operating activities - as reported 36 $ 87 $ Interest expense - pro forma 6 16 Net cash provided by (used for) operating activities - pro forma 30 71 Capital expenditures (5) (11) Proceeds from sale of property and equipment 2 - Free cash flow - pro forma 27 $ 60 $ December 31, 2015 December 31, 2016 December 31, 2017 Free cash flow Net cash provided by (used for) operating activities - as reported 344 $ 364 $ 402 $ Interest expense - pro forma 46 63 40 Net cash provided by (used for) operating activities - pro forma 298 301 362 Capital expenditures (47) (75) (32) Proceeds from sale of property and equipment 1 6 4 Free cash flow - pro forma 252 $ 232 $ 334 $ nVent Electric plc Reconciliation of the GAAP Operating Activities Cash Flow to the non-GAAP Free Cash Flow (Unaudited) In millions Three months ended In millions Twelve months ended