2018 nvent investor and analyst day · 2018-05-03 · 2018 nvent investor and analyst day new york...
Post on 23-Apr-2020
5 Views
Preview:
TRANSCRIPT
2018 nVent Investor and Analyst DayNew York City
February 13, 2018
5/3/2018
WelcomeJ.C. Weigelt
Vice President Investor Relations
Estimated Time Topic Speaker
1:00pm Welcome J.C. Weigelt
1:05pm Opening Remarks Randall Hogan
1:10pm Overview of nVent Beth Wozniak
1:35pm Growth Strategy Ben Sommerness
1:50pm Overview of Enclosures Joe Ruzynski
2:05pm Overview of Thermal Management Brad Faulconer
2:20pm Overview of Electrical & Fastening Solutions Robert van der Kolk
2:35pm Investment Thesis and Financial Outlook Stacy McMahan
2:50pm Break
3:00pm Q&A
3February 13, 2018 nVent Investor Day
Agenda for Today
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 "Proposed Separation") on a timely basis or at all; the ability to successfully separate our business and realize the anticipated benefits from the Proposed Separation; adverse effects on our business operations or financial results as a result of the announcement or consummation of the Proposed Separation; unanticipated transaction expenses, such as litigation or legal settlement expenses; failure to obtain tax rulings or changes in tax laws; changes in capital market conditions; the impact of the ProposedSeparation 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 Proposed 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 Proposed Separation.
24
Forward-Looking Statements
February 13, 2018 nVent Investor Day
• Except as Otherwise Noted, All References to nVent and All Amounts Included Herein Represent the Pentair Electrical Business Excluding the Pentair Water Business
• "Core Sales" Refers to GAAP Revenue from Continuing Operations 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
• "Adjusted Core Sales" Represents "Core Sales" Excluding the Impact of Large Jobs Within our Thermal Management Business
• Segment Income Represents Equity Income of Unconsolidated Subsidiaries and Operating Income from Continuing Operations Exclusive of Non-Cash Intangible Amortization, Certain Acquisition Related Expenses, Costs of Restructuring Activities, "Mark-to-Market" Gain (Loss) for Pension and Other Post-Retirement Plans, 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
5
Key Definitions
February 13, 2018 nVent Investor Day
Opening RemarksRandall Hogan
Chairman, nVent
7
Separation into Two Publicly-Traded Companies
Industry-Leading, Pure-Play Companies; Strong Brands & Financial Profiles
WATER ELECTRICAL
A Leading Global Water Treatment Company Focused on Smart, Sustainable
Water Solutions
A High-Performance Electrical Company Focused on Connecting and Protecting our
Customers with Inventive Electrical Solutions
2017 Revenue: ~$2.1B 2017 ROS: ~19%*
2017 Revenue: ~$2.8B 2017 ROS: ~17%*
SUSTAINABILITYMaximizing the Use ofthe Resources People
Rely on Most
Connecting & Protecting Critical Processes, People,
and the Environment
CONNECTION & PROTECTION
February 13, 2018 nVent Investor Day*Includes allocated corporate costs
8
The Next Step in the Evolution of Pentair
Rationale of Separation
RATIONALE
FOUNDATION
STRATEGIC FOCUS
Improved Clarity into Performanceand Growth Opportunities
CAPITAL ALLOCATION FLEXIBILITY
Unique Strategies to Deliver Growth for Each
FINANCIAL STRENGTH
Supports Plan to be Successful, Profitable, and Sustainable
PIMS
Pentair’s “Business System”
MANAGEMENT TEAM
Mix of Current & New Executivesand Board Members to Lead
CAPITAL STRUCTURE
Expect Strong Balance Sheet and Financial Positioning
February 13, 2018 nVent Investor Day
nVent OverviewBeth Wozniak
Chief Executive Officer
At nVent, we believe that safer systems ensure a more secure world. We connect and protect our customers
with inventive electrical solutions.
Confidential & Proprietary
The Road to nVent
A Name that Reflects Our History and Our Future
Erico
Founded
1900s 1940s 1950s 1960s 1970s 1980s 1990s 2000s
Hoffman
Engineering
Launched
Raychem
Founded
Schroff
Founded
Tracer
Founded
Hoffman
Acquisition
Schroff
Acquisition
2010s
Raychem & Tracer
Acquisition (Tyco)
Erico/Caddy
Acquisition
Caddy
Launched
February 13, 2018 nVent Investor Day 11
12
Performance History
4x Sales and nearly Doubled ROS…Profitable, Scaled Electrical Business
1996 2007 2017
Sales ($M) ROS
~19%
~10%
February 13, 2018 nVent Investor Day
~$550M ~$1.1B
~$2.1B
~15%
~$550M
13
Diversified Portfolio with Strong Financials
High Performance Electrical Company Focused on Connection & Protection
Industrial
Company Characteristics
VerticalsSegments Geographies
US & Canada
65%
Western Europe
22%
Developing
11%
OtherDeveloped
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
~19%ROS
~$2.1BRevenue
February 13, 2018 nVent Investor Day
14
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
February 13, 2018 nVent Investor Day
We are a Leader in Connection and Protection
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
CoolingReduced 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
SolutionsHigh Cost of Failure
Customer Productivity &
Total Cost of Ownership
Stainless
Steel
Enclosures
Purge and
Pressurizatio
n Systems
nVent has Mission-Critical Solutions That Create Value
15February 13, 2018 nVent Investor Day
16
nVent Leadership Team
New Leadership Team in Place
BETH WOZNIAKChief Executive Officer
TOM PETTITEVP & Chief Integrated Supply Chain Officer
JOE RUZYNSKIPresident
Enclosures
BRAD FAULCONERPresident
Thermal Management
STACY McMAHANEVP & Chief
Financial Officer
LYNNETTE HEATHEVP & Chief Human Resources Officer
JON LAMMERSEVP, General Counsel
& Secretary
BEN SOMMERNESSEVP, Chief Growth &
Strategy Officer
ROBERT Van der KOLKPresident
EFS
February 13, 2018 nVent Investor Day
Drive Productivity & Velocity
The nVent Strategy
17
One nVent
Focus on Attractive
Verticals
Accelerate
Innovation &
Connected Solutions
Grow Globally & in
Developing Regions
Pursue Targeted Bolt-on Acquisitions
February 13, 2018 nVent Investor Day
18
Macro Trends are Favorable
Trends Drive use of More Electrical Products
Demographic
Shifts
Technology &
Connectivity
Electrification &
Urbanization
Safety & Security
February 13, 2018 nVent Investor Day
19
One nVent
Customers
Channels
Capability
Digital
Scale
Aligned Go to Market Teams for Key Verticals
Key Partnerships and Account Management
Commercial Excellence
Digitizing the Customer Experience
Common Processes & Systems
February 13, 2018 nVent Investor Day
20
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
February 13, 2018 nVent Investor Day
21
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 ManagementSystem connectivity
• Differentiated air to water & water to water high density heat exchangers
• Critical need in datacenters for high density heat loads
February 13, 2018 nVent Investor Day
22
Grow Globally and in Developing Regions
Global Footprint Supports Global Growth
Manufacturing Facilities
• Developed Regions: Accelerate product coverage and penetration
• Developing Regions: Enhance local capabilities and localized solutions
• Localizing products
• Increasing global design capability
February 13, 2018 nVent Investor Day
23
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
February 13, 2018 nVent Investor Day
24
nVent Values
Living our Values is Fundamental to Achieving Our Goals
Retain our Win Right Values and Culture
February 13, 2018 nVent Investor Day
Evolution of Our Management System
Building on a Strong Foundation
PIMS Foundation Introducing spark
PENTAIR INTEGRATED
MANAGEMENTSYSTEM
Rapid Growth Process3D Innovation
Commercial Excellence
Talent Mgmt.Org. Development“Win Right” Values
Standard WorkCreating Flow
Strategy Deployment
Growth
TalentLean Enterprise
▪ Growth
▪ People
▪ Lean Enterprise
▪ Velocity
▪ Digital
spark
February 13, 2018 nVent Investor Day 25
26
The 5 elements of Spark
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
February 13, 2018 nVent Investor Day
27
Key Priorities by Segment
Focused Growth Globally
• Grow Industrial and Infrastructure
• Expand margins via productivity and price
• Digitize customer experienceEnclosures
• Grow Industrial, Commercial and Infrastructure
• Focus on Industrial MRO
• Launch new products and connected solutions
Thermal Management
• Grow Commercial and Infrastructure
• Launch new products and solutions
• Expand margins via productivity and price
Electrical & Fastening Solutions
February 13, 2018 nVent Investor Day
28
CEO Priorities
Set up nVent as a Separate Public Company
Drive Organic Growth
Expand Margins via Productivity and Velocity
Continue Strong Cash Flow
Drive Disciplined Capital Allocation
February 13, 2018 nVent Investor Day
Long-Term Financial Framework
Long-Term Value Creation Goals
Differentiated growth1-2% above GDP
Margin
Expansion
Top Tier Performance
Free Cash Flow =
100% Adjusted Net Income
Long-Term Goals
29
Revenue
Segment Income
EPS
Cash Flow
February 13, 2018 nVent Investor Day
30
Key Takeaways
Building a High Performance Growth Company
We are a Leader in Connection and Protection
February 13, 2018 nVent Investor Day
• 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
Countdown to Target Spin Date ~ 76 Days, 19 hours, 55 min.
February 13, 2018 nVent Investor Day 31
Growth StrategyBen Sommerness
Chief Growth & Strategy Officer
33
nVent’s Verticals are Attractive and Growing
Solid Vertical Growth and nVent Position
Characteristics
Verticals
Total
Addressabl
e
Size
($B)
Expected
Growth
Commercial &
Residential~22 ~3%
Industrial ~18 ~4%
Infrastructure ~11 ~4%
Energy ~9 ~3%
Total ~60 ~3-4%
• Large, attractive verticals
• Strong fundamentals accelerating growth – Technology/Connectivity
– Electrification/Urbanization
– Demographic Shifts
– Safety and Security
• Good mix across verticals
• Many leadership positions
• Lots of opportunity, globally
February 13, 2018 nVent Investor Day
34
We Have a Leading Portfolio of Electrical Products
Thermal Management($622M)
Enclosures ($935M)
Electrical & Fastening Solutions($541M)
Equipment
Protection
Building
Infrastructure
Solutions
Industrial
Heating
Solutions
Electronics
ProtectionFastening
Solutions
Electrical
Solutions
2017 Revenue by SegmentFebruary 13, 2018 nVent Investor Day
35
Unifying Our Strong Brands Under nVent
A “Branded House” That Better Enables Portfolio Selling
1966
1988
1994
2012
2015
2018
February 13, 2018 nVent Investor Day
Drive Productivity & Velocity
36
The nVent Strategy
One nVent
Focus on Attractive
Verticals
Accelerate
Innovation &
Connected Solutions
Grow Globally & in
Developing Regions
Pursue Targeted Bolt-on Acquisitions
February 13, 2018 nVent Investor Day
37
Growth Mindset…With Rigorous Execution to Deliver on Commitments
February 13, 2018 nVent Investor Day
Drive “One nVent” via Commercial Excellence Framework
Developing Addressing Executing Growing
Mar
ket
&
Cu
sto
mer
In
sigh
ts
Mar
ket
A
nal
ysis
Pro
du
ct
Man
agem
ent
Co
mm
erci
al
Effe
ctiv
enes
s
Stra
tegy
D
evel
op
men
t
Val
ue
Cre
atio
n &
P
rici
ng
Dem
and
G
ener
atio
n
Inn
ova
tio
n
Bra
nd
ing
&
Co
mm
un
icat
ion
Selli
ng
Serv
ice
&
Sup
po
rt
1 2 3 4 5 6 7 8 9 10 11
Near-Term Priorities to Drive Growth
• Product Management
• Customer Insights
• Innovation Velocity
• Strategic Pricing
• Commercial Effectiveness
38
“One nVent” - Pursuing a Digital Strategy to Enable Growth
• Focus in 2018– New web site
– CRM launch
– Product data
– Configurators
• Transformation over time– 2018 – 2019
Digitize the Core
– 2020 – 2021 Digital End-to-End
– 2021+ World Class Customer Experience
Business strategy
Digitize Go-To-Market Connected Solutions
Digitize Operations Digitize Support
Functions
Accelerators (People, Technology, Analytics)
February 13, 2018 nVent Investor Day
39
Configurators Allow Better Customer Experience
Connecting Our Customers to Create Value
• Enhancing the customer experience
• Driving velocity by simplifying processes
• Expanding configurator capability to more product lines
Design Your Electronics Cabinet or Front Panel in Minutes!
Digital Example: Schroff Configurator
February 13, 2018 nVent Investor Day
40
Attractive Verticals - Infrastructure
Coordinated Approach to Drive Infrastructure Opportunities
• Infrastructure is a large, global vertical with attractive growth – ~$11B, ~4% growth
• DataCom & Networking Solutions (DNS) is one key growth opportunity
• Increase DNS sales via: – Dedicated enterprise team
– Selling solutions
– Building on strong relationships
– Bring global differentiation
Racks & Accessories Cable Pathways
Cooling Grounding
DataCom & Networking Solutions
February 13, 2018 nVent Investor Day
Thermal Management Cable Management
Fire Protection Seismic Protection
Lightning ProtectionDNS
• Commercial vertical is large and growing – ~$22B, ~3% growth
• Increase Commercial sales via: – Dedicated enterprise leader
– Project pipeline expansion
– Specification selling
– Clear value propositions
– Collaboration across nVent
– Aligned channel to deliver
41
Attractive Verticals - Commercial
Commercial Building
February 13, 2018 nVent Investor Day
42
Accelerate Innovation - 3D Process for Organic Growth
Process Bearing Fruit, But Much More to Come
DeployExecute
Launch
DevelopOptimize & Validate
Design
DiscoverIdentify, Evaluate & Prioritize
• Established, robust process driving velocity – Vitality up 25% since 2015
• Increasing investment with focus on ‘bigger’ ideas– Technology differentiation
– Better VOC, tools, and training
– Continued 3D rigor
• Expect strong new product sales contribution– ~50 launches in 2018
– Target ~20% vitality longer term
3D Product Development Process
February 13, 2018 nVent Investor Day
43February 13, 2018 nVent Investor Day
Growth Globally and in Developing Regions
Sell Our Existing Portfolio…Globally!
• Approach:
– Align nVent, go-to-market approach
– Product & manufacturing localization
– Expanded in-region marketing
– Broader channel partnerships
– Prioritize, such as Silk Road
• Approach:
– Vertical growth initiatives
– Segment coordination
– Sell existing portfolio
– Innovative solutions
– Aligned channel partnerships
• Growth Examples:
– ERIFLEX FLEXIBAR busbar in U.S.
– CADDY fasteners in Europe
– RAYCHEM XL-TRACE heat trace
Developing RegionsDeveloped Regions
44
Key Takeaways
nVent is Poised for Strong Growth
• nVent is in attractive, growing verticals
• We have strong, well-positioned brands and products
• We are unifying under One nVent to drive portfolio growth
• nVent has an exciting future with a clear, focused strategy
• Underpin growth with commercial excellence velocity
February 13, 2018 nVent Investor Day
EnclosuresJoe Ruzynski
President, Enclosures
46
What You Will Hear Today
Positioned to Drive Growth and Expand Margin
• Enclosures is growing and is well positioned to grow− Strong brands positioned well in favorable verticals
− Sustainable competitive advantages
• We expect to grow by:− Driving growth in Industrial and Infrastructure verticals
− Supporting the transformation in our channel and digitizing our front end
− Growing in Developing Regions
• We plan to expand margins by:− Driving productivity and lean in our newly expanded footprint
− Optimizing price
− Leveraging digital and increasing velocity
February 13, 2018 nVent Investor Day
Other Developed11%
We provide innovative solutions that protect, connect, and manage
heat in critical electronics, communication, control, and
power equipment.
Who We Are: Enclosures
Description 2017 Financials
VerticalsGeographies
US &
Canada
69%
Western Europe
18%
Developing
1%
Industrial
60%
Energy
11%
Infrastructure
19%
Commercial
10%
$935MRevenue
~17%ROS
47February 13, 2018 nVent Investor Day
We Connect and Protect Critical Controls and Components
48
Hazardous Location Enclosures
Modular Enclosure Solutions
Industrial Cooling
Server Cabinets
Data Center Solutions
Power Supplies
Subracks and Cases
Equipment
Protection
Electronic
Protection
February 13, 2018 nVent Investor Day
Industrial controls and automation
Oil & gas controls
Food and beverage
Commercial construction
Data centers & networking
Rail signaling and control
Test and measurement
Aerospace and defense
Data centers & networking
49
Did you know?
Providing Innovative Solutions for More Than 70 Years
• More than 30 million nVent enclosures are in use
around the globe today
• Our 4X stainless steel enclosure with POWERGLIDE handle
withstood hurricane flooding for four days
• Data centers with high heat densities are deploying
nVent closed loop cooling systems globally
• nVent backplanes provide millions of passengers a
pleasant inflight entertainment experience
February 13, 2018 nVent Investor Day
• Strategic channel partnerships
• Digitize customer experience
Key 2018+ Priorities to Support nVent Strategy
50
One nVent
Focus on Attractive
Verticals
Stabilize Performance &
Strengthen Margin
Grow Globally & in
Developing Regions
1
3
4
2 • Accelerate in higher growth DNS
• Global industrial expansion
• Flow capital to best opportunity
• Partnered distribution model
• Value based pricing
• Streamlined offering in growth regions
• Localization of design
• Globally serve key OEMs
February 13, 2018 nVent Investor Day
Well Positioned to Continue Capturing Macro Trends
Demographi
c Shifts
Electrification &
Urbanization
Industrial & Infrastructure
Investments in Developing
Regions
Increased Data Needs …
Everywhere
Remote Monitoring, Predictive
Maintenance
Macro-Trends Example Sub-Trends
Channel Velocity and Value
Add
Broad Footprint and Portfolio
Leading Data, Networking, and
Cooling Solutions
Connected Cooling and Power
Segment Implications
Configurator and Modification
Solutions
Technology &
Connectivity
Safety &
Security
February 13, 2018 nVent Investor Day 51
Enclosures Has Strong Competitive Advantages
52
Strong Brand
Recognition
Technical
Expertise
Customized
Products and
Solutions
Broad
Product
Offering and
Availability
• Deep history in our
Hoffman and
Schroff brands and
reputation for
quality and
reliability
• Specialized
engineering and
testing expertise
enables ability to
deliver high
performance, lower
cost designs
• Ability to tailor
products and
provide innovative
solutions to meet
complex customer
requirements
• Broad enclosure,
cooling, and
accessory product
offering
• Strong availability
through global
channel
February 13, 2018 nVent Investor Day
Customer needs:
Harsh environments cause “general purpose” products to fail
• Rusting and corrosion
• Equipment failures
• Down time
• Lost revenue
• Incremental expense
Differentiated Solutions Driving Customer Value
53
SPECTRACOOL air conditioners with Advanced
Corrosion Protection
• Differentiated corrosion protection solution
• Implemented at Leading Tire Manufacturer for a 24 month pilot
• Strong results at customer:• Uptime improvement of ~500%• Cost savings of ~$1.4m
Smart - Remote Monitoring of Air
Conditioners Extends Life
Testimonial: “Production can run more smoothly without worrying about downtime since we introduced protected AC units and remote monitoring.”
February 13, 2018 nVent Investor Day
Using Digital to Improve the Customer Experience
Setting the Base for Digital Transformation
• Improve customer’s digital journey with flexible search and collaborative design tools
• Provide better customer service through quick quoting, fast fulfillment, order tracking and online support
• Support channel’s effort to add value by integrating with their sites
EASY SEARCH CONFIGURE & PRICE FULFILL & TRACK VELOCITY
February 13, 2018 nVent Investor Day 54
Driving Growth With New Products
Strong Pipeline, Well Positioned for Growth
PROTECTING PEOPLE CONTRACTOR INNOVATION
Product: Internal Disconnect Shield
Customer Need: Reduce risk of electric shock and arc flash
Differentiating features:− Open back with holes for easy mounting− Door stop to prevent incidental contact− Automatic latching
Product: Angled Trough
Customer Need: Cut total installation time by the elimination of costly 90-degree conduit bends
Differentiating features:− Angled design allows pulls through front and
eliminates need for conduit bends− Simple cover design for up to 80% installation
labor savings
February 13, 2018 nVent Investor Day 55
56
Improving Performance and Margin Expansion
Path to Margin Expansion and Improved Customer Experience
Investment
Past: 2015-2017
Capacity Expansion
Factory Consolidation
New Distribution Center
Automation
Stabilization and Growth
Execution
Today: 2018
Integrated Supply Chain
Logistics Optimization
Digital Front End
Pricing
Growth and Lean Enterprise
Acceleration
Future: 2019-2022
Supply Chain Velocity
Digital End to End
Improved Customer Experience
Growth and Margin Expansion
February 13, 2018 nVent Investor Day
57
Enclosures Financial Overview
Accelerating Growth and Expanding Margins in the Second Half of 2018
Revenue ($M) ROS
$959 $911 $935
2015 2016 2017 2018 Outlook
21% 20%17%
2015 2016 2017 2018 Outlook
• Improve the customer experience
• Drive growth in key verticals
• Introduce innovative products
• Grow in developing regions
• Optimize pricing
• Drive productivity and lean
• Remove complexity
• Leverage digital
~Flat
+4-6%
February 13, 2018 nVent Investor Day
58
Key Takeaways
Positioned to Drive Growth and Expand Margin
February 13, 2018 nVent Investor Day
• Enclosures is growing and is well positioned to grow− Strong brands positioned well in favorable verticals
− Sustainable competitive advantages
• We expect to grow by:− Driving growth in Industrial and Infrastructure verticals
− Supporting the transformation in our channel and digitizing our front end
− Growing in Developing Regions
• We plan to expand margins by:− Driving productivity and lean in our newly expanded footprint
− Optimizing price
− Leveraging digital and increasing velocity
Thermal ManagementBrad Faulconer
President, Thermal Management
60
What You Will Hear Today
Differentiated Solutions Positioned for Growth
• Our Thermal Management segment has improved profitability and we believe is positioned for sustained growth
− Highly differentiated products and solutions
− Diversified to capitalize on key global trends
• We expect to grow by:
− Launch of new products & software
− Delivering Vertical growth in Industrial, Commercial and Infrastructure
− Expanding regional presence through localization
• We plan to expand margins by:
− Driving productivity, pricing and velocity
February 13, 2018 nVent Investor Day
Other Developed14%
We provide electric thermal solutions that connect and protect
people, critical infrastructure, industrial processes and
buildings.
Who We Are: Thermal Management
Description 2017 Financials
VerticalsGeographies
US &
Canada
55%
Western Europe
29%
Developing
2%
Industrial
43%
Energy
31%
Commercial
& Residential
26%
$622MRevenue
~24%ROS
61February 13, 2018 nVent Investor Day
A Global Leader in Thermal Management Solutions
62
Industrial Heating
Solutions
Building &
Infrastructure
Solutions
Pipe freeze protection
Process temperature maintain
Pipeline heating
Tank & vessel heating
Heat Tracing for
Plant Piping &
Vessels
Heating System
Components
Control, Monitoring
& Sensing
Turnkey
Services
Heat Tracing for
Pipes & Surfaces
Floor Heating
Cables & Mats
Thermostats,
Controls
Fire Rated
Wiring Cables
Snow melting & de-Icing
Radiant floor warming
Liquid leak detection
Life safety power cables
February 13, 2018 nVent Investor Day
63
Did you know?
Thermal Management Connects and Protects Around the World
The world’s longest heated pipeline in
India uses Raychem heating technology,
engineered by Tracer
New York High Rise buildings use
Raychem heating technology for efficient
hot water design for instant hot water on
every floor
Inventor of Self-Regulating
Heating Cables with more than a Billion
Feet installed worldwide
February 13, 2018 nVent Investor Day
• Strategic channel partnerships
• Digitize the customer experience
Key 2018+ Priorities to Support nVent Strategy
64
One nVent
Focus on Attractive
Verticals
Product Innovation to
Capitalize on Attractive
Global Trends
Grow Globally & in
Developing Regions
1
3
4
2 • Industrial MRO
• Commercial & Infrastructure
• Smarter, IoT enabled products
• Fire, Safety and Sustainability
• Flow Assurance
• Build local commercial capability
• Regionalization of products
February 13, 2018 nVent Investor Day
Well Positioned to Continue Capturing Macro Trends
Demographi
c Shifts
Electrification &
Urbanization
Technology &
Connectivity
Safety &
Security
Macro-Trends
Connected Solutions
Sustainability
Enhanced Fire and Life
Safety Standards
Segment
Implications
Regional Expansion &
Localization
Differentiated Solutions
Connected: Heat Trace Control &
Monitoring
Flow Assurance
Sustainability: Systems for
Energy & Water savings in
Buildings
Safety: Anti-icing for Ships and Offshore
Platforms, De-icing for Buildings
Flow Assurance: Protecting Critical
Pipelines
Fire: Life
Safety
Circuits
February 13, 2018 nVent Investor Day 65
Thermal Has Strong Competitive Advantages
66
Strong Brand
Recognition
Technical
Expertise
Complete
Solutions
Ease of
Installation
and Reduced
Total Cost
• History of
innovative and
high-quality
products &
services
• Specialized
engineering
expertise for
optimized solutions
• Offer one-stop
shop from products
to complete
installations
• Highly Reliable
solutions that lower
total cost of
ownership
February 13, 2018 nVent Investor Day
Differentiated Solutions Driving Customer Value
67
TracerLynx Platform:• Single database heat management
design software• Imports electronic piping files and
specs• Powerful design optimization and
change management
Thermal Management 3D Design & Optimization Software
Customer Results:• Heating & Insulation optimization resulting
in significant power load reduction• Power distribution savings from reduced
power cable and cable tray • Customer case studies support 1% in overall
Heat Management System savings
February 13, 2018 nVent Investor Day
Driving Growth With New Products
Strong Pipeline, Well Positioned for Growth
Innovation in Heating
Technology
Innovation in Connected
Controls
• Product: Raychem Control & Monitoring
• Customer Need: Ease of use, connectivity
• Differentiating features:− Touch user interface − Full connectivity− Global standards
• Product: Raychem XL-Trace
• Customer Need: Enhanced Fire Safety
• Differentiating features:− Low smoke, zero
halogen polymers− 50% less smoke
over standard cables
02:05 02:05
Industrial Process
Heat Tracing Controller
Multi Application
Controller
February 13, 2018 nVent Investor Day 68
69
Business Performance Improvement Through PIMS
Significant Process Improvements Delivering Financial Results
• ~800 bps improvement in Operating Margins since 2012
Lean Manufacturing Lean EngineeringNew Product
Development
Redwood City Plant:• ~50% cycle time reduction• ~25% square foot reduction• 3 shifts to 2 shifts with
increased production
NPD Process:• Standard work, visual
management• ~10% to 20% vitality• ~25% annual increase in
5YIR incremental revenue
Global Engineering Centers:• Standard work and visual mgmt.• Work share across 8 offices• ~80% lead time reduction• ~100% improvement in
production output
February 13, 2018 nVent Investor Day
70
Thermal Financial Overview
Thermal Sales Declined With Non-Recurring Projects, Profit Grew Solidly
Revenue ($M) ROS
$703 $692 $622
2015 2016 2017 2018 Outlook
22%18%
24%
2015 2016 2017 2018 Outlook
• Deliver new products & software
• Grow in focused verticals
• Regional expansion, China
• Drive productivity and lean
• Remove complexity
• Leverage digital
• Deliver pricing and velocity
+1-3%50-70 bps
February 13, 2018 nVent Investor Day
71
Key Takeaways
Differentiated Solutions Positioned for Growth
• Our Thermal Management segment has improved profitability and we believe is positioned for sustained growth
− Highly differentiated products and solutions
− Diversified to capitalize on key global trends
• We expect to grow by:
− Launch of new products & software
− Delivering Vertical growth in Industrial, Commercial and Infrastructure
− Expanding regional presence through localization
• We plan to expand margins by:
− Driving productivity, pricing and velocity
February 13, 2018 nVent Investor Day
Electrical & Fastening Solutions (EFS)Robert van der Kolk
President, EFS
73
What You Will Hear Today
Sustained Profitable Growth
• Our Electrical & Fastening Solutions (EFS) segment is well positioned for sustained growth with
• Innovative solutions
• End-user focused applications
• Strong brands with well-defined value propositions
• We expect to grow by:
• Innovative new products and solutions
• Targeted vertical and regional focus
• Further enhanced customer experience
• We plan to expand margins by:
• Price/Cost, productivity, lean enterprise and simplicity
February 13, 2018 nVent Investor Day
Other Developed10%
We provide electrical and
fastening solutions that
connect and protect
electrical and mechanical systems
and civil structures.
Who We Are: Electrical & Fastening Solutions
Description 2017 Financials
VerticalsGeographies
US &
Canada
70%
Western Europe
18%
Developing
2%
Industrial
19%
Energy
10%
Infrastructure
14%
Commercial
57%
$541MRevenue
~26%ROS
74February 13, 2018 nVent Investor Day
A Global Leader in Electrical & Fastening Solutions
75
Fastening
Solutions
Electrical Installation & Protection
Rail & Transit
Telecom
Utility & Industrial Facilities
Electrical
Solutions
Electrical Installation
Seismic & Fire Protection
Data Communications
HVAC
• .77
February 13, 2018 nVent Investor Day
Data
Communications
Electrical
Installation
Electrical Protection
Rail & Transit
76
Did you know?
Electrical & Fastening Solutions Connects and Protects Around the World
nVent sells ERICO products to
all major North American and
most major international
rail companies
With over 100,000,000 connections
installed globally, ERICO CADWELD sets
the standard in the exothermic welding
method in the industry since 1939
nVent manufactures and sells over 5,000
miles of CADDY Telescoping Screw
Gun Brackets annually
February 13, 2018 nVent Investor Day
• Strategic channel partnerships
• Digitize customer experience
Key 2018+ Priorities to Support nVent Strategy
77
One nVent
Focus on
Attractive Verticals
Innovative New Products
& Solutions
Targeted Geographic
Expansion
1
3
4
2
• Solution selling across nVent portfolio
• Aligned approach to focused verticals
• Innovation with strong value propositions
• Supported by macro trends
• Right product, right place, right time
• Efficient local teams
February 13, 2018 nVent Investor Day
Well Positioned to Continue Capturing Macro Trends
Macro-Trends Implications Differentiated Solutions
CADDY Prefab Solutions
CADDY SeismicERIFLEX
FLEXIBARERICO Rail
Seismic
CalculatorPrefab Configurator
• Reliable
Products
• Code
Compliant
Solutions
• Ease of Use
• Interactive
Solutions
• Modular
Products
• Ease of
Installation
February 13, 2018 nVent Investor Day 78
Electrification &
Urbanization
Technology &
Connectivity
Safety &
Security
EFS Has Strong Competitive Advantages to Leverage
79
Brand
Recognition
Well-defined
Value
Propositions
DiversificationInnovation
Total Cost of
Ownership
Design
Flexibilit
y
115YEARS
53% | 83%
29% | 81%
Reg ions
Ver t i ca ls&
February 13, 2018 nVent Investor Day
WITHOUT AID
WITH AID
Differentiated Solutions Drive Customer Value
80
Panel Manufacturer Need:
▪ Save time
▪ Save space
Differentiations:
▪ Flexible
▪ Customizable solution
▪ Reduce total installed cost
▪ Safety & Reliability
Customer Results:
▪ Reduced installation time
▪ Less congestion in panel
▪ Improved panel performance
Before After
February 13, 2018 nVent Investor Day
Driving Growth With New Products
Strong Pipeline, Well Positioned for Growth
Rail Switch Heating
SystemsStamped Bracing Systems
• Differentiating features:− Safety & Reliability− Energy efficient− Customized solutions
• Differentiating features:− Reduce total installed cost− Ease of installation
CADDY
Stamped Seismic Bracing
ERICO
Rail Switch Heating System
Differentiated Conductors
• Differentiating features:− Unique− Safer− Flexible
ERIFLEX
FLEXIBAR ADVANCED
81February 13, 2018 nVent Investor Day
82
EFS Financial Overview
Profitable Growth with More Opportunity Ahead
Revenue ($M) ROS
$147
$513 $541
2015 2016 2017 2018 Outlook
26% 28% 26%
2015 2016 2017 2018 Outlook
• Innovative new products & solutions
• Targeted vertical & regional focus
• Strong brands with well defined value
proposition
• Price / Cost
• Productivity and lean enterprise
• Simplicity
+3-5%30-50 bps
February 13, 2018 nVent Investor Day
83
Key Takeaways
Sustained Profitable Growth
▪ Our EFS segment is well positioned for sustained growth with
▪ Innovative solutions
▪ End-user focused applications
▪ Strong brands with well-defined value propositions
▪ We expect to grow by:
▪ Innovative new products and solutions
▪ Targeted vertical and regional focus
▪ Further enhanced customer experience
▪ We plan to expand margins by:
▪ Price/Cost, productivity, lean enterprise and simplicity
February 13, 2018 nVent Investor Day
Investment Thesis & Financial OutlookStacy McMahan
Chief Financial Officer
85
What You Will Hear Today
An Attractive Long-Term Investment
February 13, 2018 nVent Investor Day
• Expect Industry Growth
• Positive Macro Environment
• Highly Profitable Business with Sustained Margin Performance
• Consistent, Strong Cash Flow
• Disciplined Capital Allocation
86
Differentiated Growth
Focus on Establishing Reliable Growth Profile
Organic:
• Favorable macro trends
• Differentiated opportunities in verticals
• New products and connected solutions
• Underpenetrated in certain global verticals
Inorganic:
• Attractive bolt-on targets in highly fragmented markets
February 13, 2018 nVent Investor Day
Favorable Margin Profile
$1,809 $2,116 $2,098
20% 21% 21%
2015 2016 2017
Sales Adj. EBITDA Margin
…with established margin performance via:
• Diversification
• Growth in new regions and new products
• MRO business mix
• Lean enterprise
Starting from a position of competitive margin…
Sales & Adjusted EBITDA Margin1
2017 Adj. EBITDA Margin1 of Select Electrical
Peers
Note: Adjusted EBITDA Margin excludes the impact of non-cash amortization, certain acquisition related expenses, costs of restructuring activities, “mark-to-market” gain (loss) for pension and other post-retirement plans, impairments, and other unusual non-operating items. ¹ 2017A adj. EBITDA margins for Littelfuse, nVent, and Hubbell, 2017E adj. EBITDA margins for Amphenol, Legrand, Thermon, Eaton, and Schneider Electric based on IBES estimates. Hubbell not pro forma for the acquisition of Aclara.February 13, 2018 nVent Investor Day
23.9% 23.7% 22.5% 21.0%18.2% 17.3% 17.3% 16.5%
88
A Clear Opportunity to Drive Margin Expansion
Runway for Sustained Profitability Improvement
• Drive profitable growth
‒ Commercial excellence
‒ Pricing optimization
‒ Product vitality acceleration
• Expand lean enterprise
‒ Lean information flow
‒ Integrated supply chain
• Driving common processes and systems
February 13, 2018 nVent Investor Day
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 Capital Expenditures
$47 $75
$32 2.6%
3.5%
1.5%
2015 2016 2017
Capex % of Sales (%)
$251 $232 $334
109%86% 115%
2015 2016 2017
Free Cash Flow % Adj. Net Income
1.Free cash flow represents net cash provided by operating activities, less capital expenditures, plus proceeds from sale of property and equipment.February 13, 2018 nVent Investor Day
• Low capital intensity
• Expect capital expenditures to
equal depreciation
90
Conservative Capital Structure and Allocation Philosophy
Committed and Disciplined
• Target investment grade metrics
• Balanced capital deployment strategy
• Competitive dividend policy
• Share repurchases to offset dilution at a minimum
• Bolt-on acquisitions targeting focused growth areas
February 13, 2018 nVent Investor Day
91
M&A Strategy
Well Prepared to Execute
Key Considerations:
• How does the target fit nVent’s strategy?
• How compelling are the financials of the deal?
• Why are we the right buyer?
• What’s our integration plan?
• Who’s the integration team?
Example of Financial Targets:
• ROIC crosses cost of capital at 24 months
• Accretive at 12 months
February 13, 2018 nVent Investor Day
92
nVent Financial Overview
Expecting Solid Top Line and Adjusted EPS Growth
February 13, 2018 nVent Investor Day*Includes 3 months from ERICO acquisition
Revenue ($B) Segment Income ($M)
Pro Forma Adjusted EPS
$1.81*$2.12 $2.10
2015 2016 2017 2018 Outlook
$1.58
2017 2018 Outlook
$1.70-$1.80• Interest: $40M in
2017, ~30M in 2018
• Tax rate: 20% in
2017, ~18% in 2018
• Share count: 184M
in 2017, ~183M in
2018
Summary
• Sales expected to be up 3-5% on 2-4%
core sales growth
• Segment Income growth, inclusive of
incremental growth investment
• Target free cash flow = Adj. Net Income
• Tax rate tailwind in 2018
+~10%
+3-5% ~$420$339*
$401 $404
2015 2016 2017 2018 Outlook
93
2017 and 2018 Revenue Performance
Focused Initiatives Drive Growth in 2018
2017 2018E
(1 pt)
2016 FX 2017PriceVolumeAcq./
Large Jobs
3 pts 0 pts (4 pts) 1 pts
-0.9%YoY
($89M)
$2.1B $12M
$58M$1M
$2.1B
(1 pt)
2017 FX 2018EPriceVolume
~2 pts ~1 pts ~1 pts
+3-5%YoY
$2.1B~$25M
~$40M~$15M
~$2.2B
Summary Summary
Adjusted Core Sales Up ~3%
• Enclosures Up 2%
• Thermal Management Up 4%
• EFS Up 2%
February 13, 2018 nVent Investor Day
Core Sales Up 2-4%
• Enclosures Up 3-5%
• Thermal Management Up 0-2%
• EFS Up 2-4%
94
2017 and 2018 Segment Income Performance
Investing in Growth and Accelerating Productivity
2017 2018E
(1 pt)
2016 Prod. 2017FXGrowth/ Price/Acq.
Inflation
1%YoY
($42M)
$401M $28M$15M $2M $404M
Summary Summary
ROS19%
ROS19%
(1 pt)
2017 Prod. 2018EFXGrowth/ Price
Inflation
~4%YoY
($55M)
$404M $50M~$15M ~$5M ~$420M
ROS19%
ROS~19%
Net of Growth Investment
February 13, 2018 nVent Investor Day
• Income up 1%, ROS +20 bps
• Price lagged inflation, positive exit rate
• Stabilizing productivity headwinds in Enclosures
• Income up ~4%
• Flat ROS inclusive of growth investments
• Expect Enclosures margin improvement in 2H 2018
95
2017 and 2018 Adjusted EPS and Free Cash Flow
Expecting to Deliver Double Digit Adjusted EPS Growth
Adjusted EPS Free Cash Flow
(1 pt)
2018ECapexDepreciation
~$320M ~$0M
~$35M
(~$35M)
~$320M
Summary Summary
(1 pt)2017 Pro
Forma EPSTax Rate
2018 Adj. EPS Outlook
InterestSegment Income
~5% ~2% ~3%
$1.58
~$.03~$.08
~$.04 $1.70-$1.80
+~10%YoY
• Interest expense dependent on final capital structure
• Effective tax rate improves to ~18%, down 2 points from 2017 rate
• Shares of ~183M
• Business is not capital intensive
• Capex is ~2% of estimated 2018 sales
• Target free cash flow to equal adjusted net income
2018 Adj. Net Inc. Outlook
Work Cap/ Other
February 13, 2018 nVent Investor Day
- Restructuring- Taxes+ Working __Capital
96
Full Year 2018 nVent Outlook
Stand Up nVent While Growing the Top Line and Investing in Growth
Enclosures Thermal EFS Total
Core Sales Up 3-5% Up 0-2% Up 2-4% Up 2-4%
ROS ~Flat +50-70bps +30-50bps ~Flat
Corporate Expenses ~$45M
Interest Expense ~$30M
Tax Rate ~18%
Adjusted EPS $1.70 - $1.80
Shares ~183M
February 13, 2018 nVent Investor Day
Key Considerations
• FX sales benefit of ~1%• ROS inclusive of growth investments• Tax rate benefit of ~2% from tax
reform
• Capital expenditures ~2% of sales• Total D&A of ~$100M + ~$13M of non-
cash stock compensation
Strong Growth
- GDP growth plus one or two points
- EPS grows multiple points faster than sales
Disciplined Capital
Allocation
- Competitive dividend policy
- Repurchase shares to offset dilution
- Active and disciplined M&A program
Robust Cash Generation
- Free Cash Flow conversion at 100% of Adjusted Net Income
- Best in class Working Capital management
Strong Balance Sheet
-Target Investment grade metrics
- Sustain prudent liquidity levels
97
Long-Term Financial Outlook
February 13, 2018 nVent Investor Day
98February 13, 2018 nVent Investor Day
Investment Thesis
Generate Shareholder Value with Leading Brands and a Competitive Playbook
Mission-CriticalSolutions 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
10 Minute Break
Question & Answer Session
Thank You
nVent Leadership Bio’s
103
nVent Leadership Bio’s
RANDALL J. HOGAN
CHAIRMAN | NVENT
Randall J. Hogan currently serves as Pentair’s Chairman and Chief Executive Officer and upon
the separation, he will serve as Chairman of nVent. Hogan was named Pentair’s Chief Executive
Officer in 2001 and was appointed Chairman in 2002. He first joined Pentair in 1998 as
Executive Vice President of the Enclosures Group. Prior to Pentair, Hogan was President of
United Technologies’ Carrier Transicold Division. He also held leadership roles at the Pratt &
Whitney division of United Technologies, General Electric, and McKinsey & Company. Hogan
serves as a Director of Medtronic plc where he is also a member of the Audit and Finance
Committees. Hogan holds an MBA from the University of Texas at Austin and a Bachelor of
Science degree in Civil Engineering from the Massachusetts Institute of Technology.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
104
nVent Leadership Bio’s
BETH A. WOZNIAK
CHIEF EXECUTIVE OFFICER | NVENT
Ms. Wozniak will be the Chief Executive Officer of nVent. She was named Pentair's Senior Vice
President and President of its Electrical segment in 2017. She previously served as President of
Pentair's Flow & Filtration Solutions global business unit, now a part of the Water segment.
Prior to joining Pentair in 2015, Ms. Wozniak held several leadership positions at Honeywell and
its predecessor AlliedSignal. She was most recently President of Honeywell’s Environmental and
Combustion Controls business. Previously, she held several executive positions at Honeywell
including President of its Sensing and Control business; Vice President of Business Integration;
Vice President of Six Sigma; and Vice President of Engineering and Program Management. Ms.
Wozniak holds a Bachelor of Engineering degree from McMaster University in Hamilton,
Ontario, Canada and an MBA from York University in Toronto.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
105
nVent Leadership Bio’s
STACY P. MCMAHAN
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER | NVENT
Ms. McMahan will be the Executive Vice President and Chief Financial Officer of nVent.
Previously, Ms. McMahan was the Chief Financial Officer of The Spectranetics Corporation (a
developer and manufacturer of single-use medical devices) beginning in September 2015. Ms.
McMahan was the Senior Vice President, Chief Financial Officer and Treasurer of MSA Safety,
Inc. (a global industrial company protecting the health and safety of industrial workers) from
2013 – 2015 and the Senior Vice President, Finance of MSA Safety, Inc. from 2012 – 2013.
Previously, she served over 20 years in the life science industry, most recently as Vice President,
Finance for the Customer Channels Group of Thermo Fisher Scientific from 2011 to 2012 where
she directed the channel finance function supporting research, safety and healthcare customers
and suppliers. Ms. McMahan served over six years with the Johnson & Johnson family of
companies as the Vice President of Finance and Chief Financial Officer for Johnson & Johnson
Customer & Logistics Services and Johnson & Johnson Health Care Systems; the World Wide
Vice President of Finance and Chief Financial Officer for DePuy Orthopaedics; and Executive
Director of Finance for Ethicon Endo-Surgery. Ms. McMahan received a Bachelor of Science in
Finance from Oklahoma State University and an MBA from the Harvard Business School.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
106
nVent Leadership Bio’s
LYNNETTE R. HEATH
EXECUTIVE VICE PRESIDENT, CHIEF HUMAN RESOURCES OFFICER | NVENT
Ms. Heath will be the Executive Vice President and Chief Human Resource Officer of nVent. She
joined from Twin Cities based Entrust Datacard, where she served as Senior Vice President of
Global Human Resources since 2009. Previously, she served in HR roles at General Electric,
McKesson Corp, and Xcel Energy. Ms. Heath has a Bachelor of Arts degree in Political Science
from the University of Minnesota.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
107
nVent Leadership Bio’s
JON D. LAMMERS
EXECUTIVE VICE PRESIDENT, GENERAL COUNSEL AND SECRETARY | NVENT
Mr. Lammers will be the Executive Vice President, General Counsel and Secretary of nVent. He
joined from Wichita based Foulston Siefkin LLP. Previously he served as Senior Vice President,
General Counsel and Secretary at Spirit AeroSystems in Wichita and held various senior legal
roles at Cargill in Minneapolis, Wichita and Singapore. Prior to his corporate experience, Jon
practiced law at Oppenheimer, Wolff & Donnelly and Paul Hastings. Mr. Lammers received his
law degree from the University of Virginia and his Bachelor of Science degree in Business
Administration from the University of Southern California.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
108
nVent Leadership Bio’s
BENJAMIN R. SOMMERNESS
EXECUTIVE VICE PRESIDENT, CHIEF GROWTH & STRATEGY OFFICER | NVENT
Mr. Sommerness will be the Executive Vice President, Chief Growth and Strategy Officer of
nVent. He joined from Twin Cities-based Smiths Medical, where he served as Vice President of
Global Strategy and Transformation since 2010. Previously, he served in leadership roles at the
Boston Consulting Group, Talmadge Consulting and G&K Services. A former Captain in the U.S.
Army, Sommerness earned an MBA in Finance at the Wharton School at the University of
Pennsylvania and a Bachelor of Science degree in Civil Engineering at the United States Military
Academy at West Point.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
109
nVent Leadership Bio’s
TOM F. PETTIT
EXECUTIVE VICE PRESIDENT, CHIEF INTEGRATED SUPPLY CHAIN OFFICER | NVENT
Mr. Pettit will be the Executive Vice President and Chief Integrated Supply Chain Officer of
nVent. He is currently the Operations and Supply Chain Vice President of Pentair and has served
in that role since 2015, and previously from 2008-2013. Earlier, Mr. Pettit previously served as
the Chief Operating Officer for BioScrip, Inc. (a provider of infusion and home care management
solutions) from 2014 – 2015, as the Senior Vice President and General Manager for Ryder
Supply Chain Solutions from 2013 – 2014 (a logistics company), and as the Vice President,
Finance and Global Supply Chain for ADC Telecommunications, Inc. from 2005 – 2008. He
worked for General Electric Company as a Sourcing Leader from 2002 – 2003 and then as a
Product General Manager from 2003 – 2005. Mr. Pettit held various consulting positions with
Towers Perrin General Management Services and McKinsey & Company, Inc. from 1995 –
2002. He began his career serving in the US Army as an officer in the Corps of Engineers. Mr.
Pettit has a BS from the United States Military Academy at West Point, and an MBA from the
University of Hawaii.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
110
nVent Leadership Bio’s
JOSEPH A. RUZYNSKI
PRESIDENT, ENCLOSURES | NVENT
Mr. Ruzynski will be the President of Enclosures at nVent. Mr. Ruzynski is currently the Vice
President of Pentair’s Enclosures Strategic Business Unit and has served in that role since
January 2017. Mr. Ruzynski previously served as Vice President of Pentair’s Engineered Projects
Strategic Business Group in its Valves & Controls Global Business Unit from 2016 – 2017 and
Vice President of Pentair’s Fluid Motion Business Group from 2015 – 2016. He was the Vice
President, Operations of Pentair’s Equipment Protection and Technical Solutions Global
Business Units from 2012 – 2014, and held various supply leadership positions with Pentair
from 2003 – 2012. Mr. Ruzynski was a Manager with Ernst & Young from 1997 – 2003. Mr.
Ruzynski holds a BA in Mathematics and Computer Science from St. John’s University and an
MBA from the Carlson School, University of Minnesota.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
111
nVent Leadership Bio’s
M. BRADLEY FAULCONER
PRESIDENT, THERMAL MANAGEMENT| NVENT
Mr. Faulconer will be the President of Thermal Management at nVent. Mr. Faulconer is
currently the Vice President of Pentair’s Thermal Management Strategic Business Unit of the
Electrical segment and has served in that role since January 2017. Mr. Faulconer previously
served as the Vice President of Pentair’s Thermal Building Solutions Unit from 2014 – 2016. He
was the Vice President, Marketing of Pentair’s Thermal Management Unit from 2010 – 2013.
Mr. Faulconer held various general management and marketing leadership roles with Tyco
Thermal Controls in the U.S. and Asia from 2001 – 2010. From 1991 – 2000, Mr. Faulconer held
various sales roles with Valquip Corporation. Mr. Faulconer holds a Bachelor of Science degree
in Civil Engineering from Villanova University.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
112
nVent Leadership Bio’s
ROBERT J. VAN DER KOLK
PRESIDENT, EFS | NVENT
Mr. van der Kolk will be President, EFS at nVent. He currently serves as Vice President / General
Manager of the Electrical Fastening Solutions Business (EFS), of Pentair, since September 2015.
Between September 2015 and May 2016 Robert was member of the team that oversaw the
integration of ERICO International Corporation into Pentair.
From January 1, 2012 to September 2015 Robert served as Executive Vice President, ERICO
Sales and member of the Executive Management Team of ERICO International Corporation.
From Jan 1, 2011 Robert served as Vice President LENTON Sales and member of the Executive
Management Team, prior to which Robert served as Vice President LENTON from 2008 to 2010.
From 2004 to 2008 Robert served as Director Development, from 2002 to 2004 as Director
Manufacturing Fixing and Fastening Business and in 2001 as Worldwide Manufacturing
Manager CRP & Electrical Business. Prior to joining ERICO, Robert was with Cargill as Plant
Superintendent in Mainz Germany from 2000 to 2001, Assistant Plant Superintendent in Riesa
Germany from 1998 to 2000 and Production Supervisor in Amsterdam, The Netherlands from
1993 to 1998. Mr. van der Kolk earned a B.S and M.S. in Mechanical Engineering from the
Technical University in Delft, Netherlands.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
113
nVent Leadership Bio’s
RANDOLPH A. WACKER
SENIOR VICE PRESIDENT & CHIEF ACCOUNTING OFFICER| NVENT
Mr. Wacker will be the Senior Vice President and Chief Accounting Officer of nVent. Currently,
Mr. Wacker is the Assistant Corporate Controller of Pentair plc beginning in October 2005.
Previously, Mr. Wacker was the U.S. Controller of Computer Network Technologies (a
specialized IT networking company) from 2004 – 2005. Previously, he served over 10 years in
corporate controlling and external reporting roles in various public companies. Mr. Wacker also
served over five years with the public accounting firm CliftonLarsonAllen (fka Larson Allen &
Weishair). Mr. Wacker holds a Bachelor of Science degree in Accounting from St. Cloud State
University.
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
114
nVent Leadership Bio’s
February 13, 2018 nVent Investor DayFuture nVent Leadership Team Following Separation of the Electrical Business from Pentair
J.C. WEIGELT
VICE PRESIDENT, INVESTOR RELATIONS | NVENT
J.C. Weigelt currently serves as Vice President, Investor Relations of Electrical and upon the
separation, he will serve as Vice President, Investor Relations for nVent. Mr. Weigelt joined
Pentair in 2017. Prior to Pentair, Mr. Weigelt served as Senior Director, Investor Relations and
Market Intelligence at St. Jude Medical. Mr. Weigelt holds a Master of Business Administration
degree in Finance from the University of St. Thomas and a Bachelor of Arts degree in Marketing
from Michigan State University.
AppendixGAAP to Non-GAAP
Measurements & Reconciliations
116February 13, 2018 nVent Investor Day
Reported to Adjusted 2015-2018 Reconciliation
2015 2016 2017
Total nVent
Net sales 1,809$ 2,116$ 2,098$ approx 2,170$
Net income 210 259 354 approx 270
Provision (benefit) for income taxes 56 56 (41) approx 59
Income before income taxes 266 315 313 approx 329
Interest expense 1 1 1 approx 30
Operating income 267 316 314 approx 359
% of net sales 15% 15% 15% approx 17%
Adjustments:
Restructuring and other 16 12 13 approx -
Pension and other post-retirement mark-to-market (gain) loss (13) 11 (3) approx -
Intangible amortization 32 61 61 approx 61
Trade name impairment - 13 16 approx -
Deal related costs and expenses 14 - - approx -
Inventory step-up 36 - - approx -
Separation costs - - 16 approx -
Corporate allocations (13) (12) (14) approx -
Segment income 339 401 404 approx 420
Return on sales 19% 19% 19% approx 19%
Depreciation 31 34 37 approx 36
EBITDA—as adjusted 370$ 436$ 440$ approx 456$
Adjusted EBITDA margin 20% 21% 21% approx 21%
Net income - pro forma adjusted
Segment income 339 401 404 approx 420
Interest expense - pro forma 46 63 40 approx 30
Income before income taxes - pro forma adjusted 293 338 364 approx 390
Adjusted effective tax rate 21% 20% 20% approx 18%
Provision for income taxes - pro forma adjusted 62 68 73 approx 70
Net income - pro forma adjusted 231$ 270$ 291$ approx 320$
Diluted earnings per ordinary share - pro forma adjusted
Diluted weighted average ordinary shares outstanding - pro forma 183 183 184 approx 183
Diluted earnings per ordinary share - pro forma 1.15$ 1.42$ 1.92$ approx $1.43-$1.53
Adjustments:
Adjustments to operating income 72 85 90 approx 61
Adjustments to interest expense (45) (62) (39) approx -
Income tax adjustments (6) (12) (113) approx (11)
Diluted earnings per ordinary share - adjustments 0.11 0.06 (0.34) approx 0.27
Diluted earnings per ordinary share - pro forma adjusted 1.26$ 1.48$ 1.58$ approx $1.70-$1.80
nVent Electric plc
Reconciliation of the GAAP year ended December 31, 2018, 2017, 2016 and 2015 to the non-GAAP
excluding the effect of 2018, 2017, 2016 and 2015 adjustments (Unaudited)
In millions
Actual Forecast
2018
117
Reported to Adjusted 2015-2018 Reconciliation
2015 2016 2017
Free Cash Flow
Net cash provided by (used for) operating activities - as reported 344$ 364$ 402$ approx 385$
Interest expense - pro forma 46 63 40 approx 30
Net cash provided by (used for) operating activities - pro forma adjusted 298 301 362 approx 355
Capital expenditures (47) (75) (32) approx (35)
Proceeds from sale of property and equipment 1 6 4 approx -
Free cash flow - pro forma adjusted 251$ 232$ 334$ approx 320$
nVent Electric plc
Reconciliation of the GAAP year ended December 31, 2018, 2017, 2016 and 2015 to the non-GAAP
excluding the effect of 2018, 2017, 2016 and 2015 adjustments (Unaudited)
In millions
Actual Forecast
2018
February 13, 2018 nVent Investor Day
February 13, 2018 nVent Investor Day
118
Full Year 2017 and 2018 Core Sales Growth Reconciliation
February 13, 2018 nVent Investor Day
Adjusted Core Large Jobs Core Currency Acq./Div. Total
nVent 2.8% (4.9%) (2.1%) 0.5% 0.7% (0.9%)
Enclosures 2.4% 0.2% —% 2.6%
Thermal Management 3.5% (14.8%) (11.3%) 1.2% —% (10.1%)
Electrical & Fastening Solutions 2.2% 0.5% 2.8% 5.5%
Core Currency Acq./Div. Total
nVent approx 2-4% 1% 0% 3-5%
Enclosures approx 3-5% 1% 0% 4-6%
Thermal Management approx 0-2% 1% 0% 1-3%
Electrical & Fastening Solutions approx 2-4% 1% 0% 3-5%
2017 Net Sales Growth
2018 Forecast Net Sales Growth
nVent Electric plc
Reconciliation of Net Sales Growth to Core Net Sales Growth by Segment
for the years ended December 31, 2018 and 2017 (Unaudited)
top related