2019 Electrical Products Group Conference Beth Wozniak CEO May 22, 2019
Forward-Looking Statement and Key Definitions C AUTION C ONCERNING F ORWARD -L OOKING S TATEMENTS 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," "posit ioned," "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 followin g 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 Securi ties 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. K EY D EFINITIONS AND N OTES Except as otherwise noted all references to 2019 and 2018 represent our results for the period indicated, presented on an adjust ed 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 e xclusive 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. 2 2019 Electrical Products Group Conference
Leading Electrical Company Focused on Connection and Protection Company Characteristics 2018 Financials ~$2.2B $301M Industry-leading positions and strong brands Revenue Pro forma FCF Focused on improving utilization, lowering costs and maximizing customer uptime ~19% ~9,000 Attractive margin profile ROS employees Strong free cash flow generation Segments Verticals Geographies 2% 13% Other Developed 26% 46% 45% 10% 66% Infrastructure Electrical & Enclosures Industrial Fastening Developing US and Solutions Canada 15% (“EFS”) Energy 22% 28% 27% Developed Europe Thermal Commercial & Management Residential Diversified portfolio with strong financials 3 2019 Electrical Products Group Conference
Key Takeaways 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 nVent is well positioned 4 2019 Electrical Products Group Conference
Our nVent Strategy One nVent Accelerate Innovation and Grow Globally and in Focus on Attractive Verticals Connected Solutions Developing Regions Drive Productivity and Velocity Pursue Targeted Bolt-on Acquisitions Driving a strategy for growth and performance 5 2019 Electrical Products Group Conference
Drove Organic Sales Growth in 2018 of 5% Innovation and Globally and in One nVent Attractive Verticals Connected Solutions Developing Regions Data Centers and Networking Solutions Digital Product Commercial Information 98% Rail and Transit China, India, Middle East Strategic partnership with Industrial distribution Up high single-digits Up high single-digits 32 new products Up high teens Sales growth accelerated throughout the year 6 2019 Electrical Products Group Conference
One nVent Digital 2018 Achievements Business Strategy One nVent website One CRM platform Digitize Go-To-Market Offer Connected Solutions 98% digital product data available Enclosures configurators launched 2019 Accelerate Digital Transformation Enhanced customer experience Commercial excellence capabilities Digitize Operations Digitize Support Functions Implementing new pricing, service, people management, and transportation and warehouse management platforms Data analytics Driving Growth and Improve Customer and Employee Experiences Margin Expansion Transforming nVent to be a digital business 7 2019 Electrical Products Group Conference
Digital Progress: Hoffman on Demand Quick-ship program launched April 15 th 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 Local distributor inventory + Modification center = Unmatched Speed 8 2019 Electrical Products Group Conference
Attractive Vertical: Data Center & Networking Solutions Driving Growth in DNS Focusing on high FASTENING & FIXING density heat NETWORKING & SERVER CABINETS applications for hyper scale datacenters RACK POWER DISTRIBUTION LEAK DETECTION Adding new products for power and cooling solutions MONITORING & ACCESS CONTROL AISLE CONTAINMENT Redeployment of sales teams to focus on CABLE SUPPORT & PATHWAYS value added WALL-MOUNT RACKS & ENCLOSURES applications ELECTRICAL PROTECTION GROUNDING & BONDING Strengthening relationships with global channel partners CABLE MANAGEMENT PRECISION & DIRECT-TO-CHIP LIQUID COOLING Offering a flexible modular portfolio, combined with design/project support 2019 Electrical Products Group Conference
Attractive Vertical: Commercial Building Protection Heating RAYCHEM Pipe Freeze ERICO Lightning Protection Protection RAYCHEM Water and RAYCHEM Snow Melting Fuel Leak Detection and De-Icing CADDY Seismic NUHEAT Floor Protection Heating ERICO Grounding and RAYCHEM Hot Water Bonding Temperature Maintenance Fire Protection Fire Protection PYROTENAX Fire- Rated CADDY Fastening and Wiring Support RAYCHEM Sprinkler CADDY Prefabrication Freeze Protection Cable Management Cable Management CADDY Cable Support HOFFMAN Enclosures HOFFMAN Wire and Cable Management ERICO Surge Protection Aligned sales focus across our portfolio and new product innovation 10 2019 Electrical Products Group Conference
Innovation and Connected Solutions: RAYCHEM ELEXANT 2019 Focus Strategic Actions Digitization: connectivity and analytics RAYCHEM ELEXANT family launches User experience Cloud connectivity and analytics Global platforms Expanded services Launching a New ELEXANT Family of Connected Controls ELEXANT Wireless ELEXANT ELEXANT ELEXANT ELEXANT 4010i Monitoring Smart Bridge 350c Panel Controllers Controllers Controllers Controllers Controllers 2019 2018 Growth with new product introductions 11 2019 Electrical Products Group Conference
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