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2019 Electrical Products Group Conference
Beth Wozniak
CEO
May 22, 2019
Forward-Looking Statement and Key Definitions
22019 Electrical Products Group Conference
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,“ “forecasts,” "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 adverse effects on our business operations or financial results as a result of the
consummation of our separation from Pentair (“the Separation”); the ability of our business to operate independently following the Separation; overall global economic and business
conditions impacting our business; 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, including the impacts of tariffs; 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 Securities and Exchange Commission, including nVent’s Annual
Report on Form 10-K, as amended. 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.
KEY DEFINITIONS AND NOTES
Except as otherwise noted all references to 2019 and 2018 represent our results for the period indicated, 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, separation
costs, costs of restructuring activities, impairments and other unusual non-operating items. Return on Sales ("ROS") equals Segment Income divided by Sales. See appendix for GAAP
to non-GAAP reconciliations.
32019 Electrical Products Group Conference
Leading Electrical Company Focused on Connection and Protection
Diversified portfolio with strong financials
Thermal Management
28%
Industrial
Company Characteristics
VerticalsSegments Geographies
45%Infrastructure
13%
Commercial &Residential
27%
Energy
15%
Industry-leading positions and strong brands
Focused on improving utilization, lowering costs and maximizing customer uptime
Attractive margin profile
Strong free cash flow generation
2018 Financials
~19%ROS
~$2.2BRevenue
Enclosures
46%Electrical &Fastening Solutions(“EFS”)
26% Other Developed
2%
Developed Europe
22%
Developing
10%US and Canada
66%
~9,000employees
$301MPro forma FCF
42019 Electrical Products Group Conference
Key Takeaways
nVent is well positioned
Where we focus, we win with continued progress our first year within key growth initiatives
Top tier margins sustainable with opportunity to expand
Strong cash generation business, thus deploying capital with a balanced and flexible capital allocation strategy
First quarter was in-line with our thinking and we are on track to deliver the full year
52019 Electrical Products Group Conference
Our nVent Strategy
Driving a strategy for growth and performance
Drive Productivity and Velocity
One nVent
Pursue Targeted Bolt-on Acquisitions
Accelerate Innovation and
Connected Solutions
Grow Globally and in
Developing RegionsFocus on Attractive Verticals
62019 Electrical Products Group Conference
Drove Organic Sales Growth in 2018 of 5%
Sales growth accelerated throughout the year
Attractive Verticals
Up high single-digits
Globally and in
Developing Regions
China, India, Middle East
Up high teens
Innovation and
Connected Solutions
32 new products
Data Centers and
Networking
Solutions
Commercial
Rail and Transit
Industrial
One nVent
Up high single-digits
Strategic partnership with
distribution
Digital Product
Information 98%
72019 Electrical Products Group Conference
One nVent Digital
Transforming nVent to be a digital business
2018 Achievements
One nVent website
One CRM platform
98% digital product data available
Enclosures configurators launched
2019 Accelerate Digital Transformation
Enhanced customer experience
Commercial excellence capabilities
Implementing new pricing, service, people
management, and transportation and
warehouse management platforms
Data analytics
Driving Growth and
Margin Expansion
Digitize Support Functions
Business Strategy
Digitize Go-To-Market Offer Connected Solutions
Digitize Operations
Improve Customer and Employee Experiences
82019 Electrical Products Group Conference
Digital Progress: Hoffman on Demand
Local distributor inventory + Modification center = Unmatched Speed
Quick-ship program launched April 15th
Preferred products
• ~45% of revenue
• Full product range
Driving demand to Hoffman on Demand partners
• Digital guided selling tools
• Direct customers to authorized distributor locator
Velocity and availability
• Product always ready, nationally
• MRO capture and mix advantage
2019 Electrical Products Group Conference
Attractive Vertical: Data Center & Networking Solutions
Offering a flexible modular portfolio, combined with design/project support
CABLE MANAGEMENT
NETWORKING & SERVER CABINETS
RACK POWER DISTRIBUTION
MONITORING & ACCESS CONTROL
CABLE SUPPORT & PATHWAYS
ELECTRICAL PROTECTION GROUNDING & BONDING
FASTENING & FIXING
LEAK DETECTION
AISLE CONTAINMENT
WALL-MOUNT RACKS & ENCLOSURES
PRECISION & DIRECT-TO-CHIP LIQUID COOLING
Driving Growth in DNS
Focusing on high
density heat
applications for hyper
scale datacenters
Adding new products
for power and cooling
solutions
Redeployment of sales
teams to focus on
value added
applications
Strengthening
relationships with
global channel partners
102019 Electrical Products Group Conference
Attractive Vertical: Commercial
Aligned sales focus across our portfolio and new product innovation
HOFFMAN
Enclosures
ERICO Surge Protection
CADDY Cable Support
HOFFMAN Wire and
Cable Management
ERICO Lightning
Protection
RAYCHEM Water and
Fuel Leak Detection
CADDY Seismic
Protection
ERICO Grounding and
Bonding
PYROTENAX Fire- Rated
Wiring
RAYCHEM Sprinkler
Freeze Protection
Fire Protection
Cable Management
Building Protection Heating
RAYCHEM Pipe Freeze
Protection
RAYCHEM Snow Melting
and De-Icing
NUHEAT Floor
Heating
RAYCHEM Hot Water
Temperature Maintenance
CADDY Fastening and
Support
CADDY Prefabrication
Fire Protection
Cable Management
112019 Electrical Products Group Conference
Innovation and Connected Solutions: RAYCHEM ELEXANT
Growth with new product introductions
RAYCHEM ELEXANT family launches
Cloud connectivity and analytics
Expanded services
Strategic Actions 2019 Focus
ELEXANT 4010i
Controllers
ELEXANT Wireless
Monitoring
Controllers
ELEXANT
Panel Controllers
2018
ELEXANT
350c
Controllers
ELEXANT
Smart Bridge
Controllers
Digitization: connectivity and analytics
User experience
Global platforms
Launching a New ELEXANT Family of Connected Controls
2019
12Peer companies include: ABB, Eaton, Hubbell, Legrand, Schneider, Rockwell and Thermon.
Based on guidance provided on April 25, 2019
2019 Electrical Products Group Conference
Top Tier Operating Margins
Top tier sustainable margins
18.7%
nVent
16.1%
24.7%
21.3%
14.2%
19.1%
14.9%
10.9%
2018 Peer Adj. EBITA Margins Adj. EBITA Margin by Segment
Enclosures
Thermal
Management
EFS
2018
nVent
2019
Guidance
17.1%
24.7%
25.3%
19.1% +40 - 60 bps
19.2%
20172015
19.5%
2016 2018
19.0%
2019
Guidance
19.1%
nVent Historical Adj. EBITA Margin
+40 - 60
bps
Lower allocated corporate costs pre-spin: 2015-2017
132019 Electrical Products Group Conference
Capital Deployment Strategy
Balanced and flexible capital deployment
Maintain Investment Grade (BBB- / BBB)
Invest in Organic Growth
• One nVent
• Accelerate innovation and connected solutions
• Commercial excellence
• Digital
AcquisitionsShareholder Distributions
• Bolt-on acquisitions
• Fit nVent value proposition
• Product / vertical expansion
• Meets financial criteria
• Pay a competitive dividend
• Repurchase shares to offset dilution
• Repurchase shares to capture value opportunity
• Bought back ~$110M YTD as of April 25, 2019
142019 Electrical Products Group Conference
2019 Priorities
Focused on delivering on our commitments
• Accelerate One nVent initiatives
• Drive key verticals
• Grow with new products
Organic Growth
• Deliver price + productivity to offset inflation
• Drive supply chain efficienciesMargin Expansion
• Return cash in form of dividends and repurchases
• Focus on accretive and bolt-on M&ACapital Allocation
15Based on guidance provided on April 25, 2019
2019 Electrical Products Group Conference
2019 nVent Plan
Strategy delivers solid returns, in-line with long-term outlook
Sales Growth
Attractive Margins
Free Cash Flow
Dividends
1 - 2 Points above GDP
EPS grows multiple points faster than sales
> Net income
CompetitiveS&P 400 median at ~30% payout
2 - 4% Organic GrowthExpected Real GDP at 2 - 3%
40 - 60bp ROS Expansion
EPS of $1.80 - $1.90
~$320M
100% of adj. NI conversion
~40% Payout Ratio
Long Term Outlook 2019 Guidance
Capital Allocation Strategic bolt-ons and share repurchases Strategic bolt-ons and share repurchases
Thank You
GAAP to Non-GAAP Measurements & Reconciliations
Reported to Adjusted 2019 Reconciliation
182019 Electrical Products Group Conference
Reported to Adjusted 2015 - 2018 Reconciliation
192019 Electrical Products Group Conference
Organic Sales Growth and Free Cash Flow Reconciliation
202019 Electrical Products Group Conference
Organic Currency Acq./Div. Total
nVent 4.7% 0.8% —% 5.5%
Organic Currency Acq./Div. Total
nVent 2 - 4% (1) - (2)% —% 0 - 3%
Interest expense - pro forma (5.6)
Net cash provided by (used for) operating activities - pro forma 337.9
(39.5)
2.4
Twelve months ended
December 31, 2018
343.5$
300.8$
nVent Electric plc
Reconciliation of cash from operating activities to free cash flow (Unaudited)
In millions
Net cash provided by (used for) operating activities - as reported
Capital expenditures
Proceeds from sale of property and equipment
Free cash flow - pro forma
Reconciliation of Net Sales Growth to Organic Net Sales Growth
for the year ending December 31, 2019 (Unaudited)
(1) Forecast information represents an approximation
Forecast (1)
Full Year Net Sales Growth
nVent Electric plc
Reconciliation of Net Sales Growth to Organic Net Sales Growth
for the year ended December 31, 2018 (Unaudited)
Full Year Net Sales Growth
nVent Electric plc