Professional Documents
Culture Documents
Analyst Day
Redwood City, California
8:05 – 8:30 Thermal Management: Setting the Stage for Growth Brad Faulconer
• Group B – 1) BIS Demo Room Tour 2) IHS Demo Room 3) Manufacturing Tour 4) Lab Tour
• Group C – 1) Lab Tour 2) Manufacturing Tour 3) IHS Demo Room 4) BIS Demo Room
• Group D – 1) Manufacturing Tour 2) Lab Tour 3) BIS Demo Room 4) IHS Demo Room
One nVent
Industrial 16 5 3
• Lower cost of ownership and
installation
Commercial 13 4 2 • Specification selling
• Global new products
Digital Product
Commercial
Information 98%
Major capacity expansion + automation 2016 - 2017 Align Value Chain to Serve
• New factory plus expansions in Reynosa, Mexico • Cycle time reduction
• Local supply chains and channels
• New distribution center in Dallas
• New automated Wall Mount line Digital Customer Experience
• Build out of High Density Cooling business • Configurators and real time pricing
• Channel integration
All new operations stable and productivity accelerating
2H 2018 margin expansion while growing sales 8% Attractive Verticals
organically • Leading Data Center Technology
• 70bps margin expansion in Q4 2018 • Expanding Industrial and Infrastructure applications
2 Expand Margins
Petrochem
Monitoring
Leak Detection
Access
Environment
Surge and
Lightning
Protection
Supplied to a major signaling
systems integrator
Distribution Strategy
Commercial Excellence
Digital
nVent Brand
People are at the core of Spark, positively impacting our business and growing
People
their careers
Growth Growth is the foundation of Spark, driving shareholder, customer and employee value
Lean Lean is the relentless pursuit of eliminating waste and increasing velocity
Digital Digital transforms our products and how we do business, improving both customer
and employee experiences
Velocity Velocity is increasing speed in all we do for each other and our customers
Strategic global partnerships across the nVent portfolio to better serve customers and
position nVent for the future
Partnering to help grow new customers, markets, and address evolving customer
experience
Work collaboratively with distributor partners to meet mutually beneficial operational and
financial goals
Attractive Strategic
New Products
Verticals Partnerships
Margin Expansion of
Price Productivity Inflation
40 - 60bps
Managing price and productivity to offset inflation, fund growth and expand margins
Return Excess
Reinvest in the
Manage Leverage M&A Cash to
business
Shareholders
• Net debt to EBITDA • Expect capex of • Focus on bolt-on • Generated Free Cash
ratio at 1.7X ~2 - 3% of sales in 2019 acquisitions Flow of $301M in 2018
• Target of 1.5X - 2.0X • Investments in digital and • Target ROIC greater than • ~$80M in share
capacity expansion WACC in 2 - 3 years repurchases to date
• Ample capability to go
up to 2.5X for share • R&D investment • Accretive at 1 year • Paid quarterly
repurchases or dividends of $0.175 per
strategic M&A deal ordinary share
• Investment Grade • ~$800 million remains
enables competitive cost under current share
of capital repurchase program
through July 2021
• Credit rating BBB- (S&P)
and BBB (Fitch)
Shares Outstanding
Repurchased ~$60M of shares
~181M
Paid a quarterly dividend
• Opportunities for bolt-on • Add scale and operating • nVent value proposition
acquisitions effectiveness
• Ability to differentiate
• Potential targets have sales • Add value through revenue
between $50 - $100M and cost synergies • Accretive in one year
2 - 4% Organic Growth
Sales Growth 1 - 2 Points above GDP
Expected Real GDP at 2 - 3%
~$320M
Free Cash Flow > Net income
100% of adj. NI conversion
Competitive
Dividends S&P 400 median at ~30% payout
~40% Payout Ratio
Capital Allocation Strategic bolt-ons and share repurchases Strategic bolt-ons and share repurchases
9% 1%
Other Developed
Commercial & 10%
Residential 61%
Developing
10% Industrial
69%
Energy 20% US and
Developed Canada
20% Europe
Infrastructure
Solid performance globally across all targeted regions and focused verticals
Focusing our resources to our most critical initiatives and executing with velocity
Global reach
• 2 projects in 2018
• 3 planned projects for 2019
Products
• nVent HOFFMAN 2- and 4-post Open Frame Racks
• nVent HOFFMAN Cable Managers
• nVent HOFFMAN AccessPlus Wall Mount Cabinets
• nVent HOFFMAN Ladder Rack
• nVent CADDY J-Hooks
Great momentum second half of 2018, positioned for continued growth in 2019
~$570M
We provide electrical and fastening solutions Revenue
that connect and protect electrical and
mechanical systems and civil structures.
~25%
ROS
Verticals Geographies
3%
9% 8% Other Developed
Energy 58%
Developing
13% Commercial &
70%
Residential
Infrastructure 19% US and
Developed Canada
20% Europe
Industrial
Results:
• Shipped 48 units of GTBs in February
• Developed relationship with one of NY’s leading electrical contractors
• First cross-segment opportunity for nVent CADDY Prefab Solutions
Manufacturing
• 160 employees, largest plant of 4
• Highly automated production facility
• First production began of RAYCHEM self-regulating cables in 1970
• Over 1.8 Billion feet produced
Remote
Configuration
and Monitoring
with Supervisor
software
Heat tracing is… providing
heat to maintain temperature
Transformer
of fluids, by replacing the
heat lost through thermal
insulation on pipes.
RTD Temperature
Sensor Lighted End Seal
Power
Connection
Insulation Systems
Heating Cable
Specialized engineering
Strong Brand History of innovative and Technical
high-quality products and expertise for optimized
Recognition services Expertise solutions
Ease of
Offer one-stop shop from
Installation Highly reliable solutions that Complete
products to complete
and Reduced lower total cost of ownership Solutions installations
Total Cost
Capital Projects
Fuels longer term high-margin MRO
business
Heat-Tracing
Power Strong history of winning large capital
Distribution Systems projects
Fire Performance
cables
Temperature Control Advanced design tools, global
and Monitoring Systems
engineering centers and project
Heat-Traced Tubing Pre-Insulated Pipe execution footprint
Bundles and
Instrument Outdoor
Winterization Pipe and Valve
Freeze Protection
Rail Heating
Application:
Building retrofit with multiple runs from under 100ft to over
1,000ft
Various circuit sizes up to 3,000 Amps
Interior and exterior segments, vertical and horizontal Pressurization Fans
Smoke Extraction Fans
Scope:
nVent PYROTENAX System 1850 wiring cable providing 2-
hour fire rating, highest ampacity specifications and space
savings
Providing power to critical fire alarms, fire pumps, emergency
generators, exit lighting and elevators
Complete system including UL listed fire rated splices and
termination kits Figure 1. Typical Critical Wiring System Fire Alarm Control Unit Fire Pump
2018 2019
Lowering customer’s
total installed costs
using state of the art 3D
design software to
optimize power
distribution
Start projects earlier,
rapid change
management, and
schedule compression
Early and accurate
placement of panels at
the beginning of our
projects reducing our
clients costs
Commercial
Spec focus for differentiation and demand creation
Focus on safety and building performance
Infrastructure
Rail and Transit focus with One nVent portfolio
Silk Road development
Airport and Data Center focus with leak detection systems
62
Agenda for Today
Time Agenda Presenter
8:05 – 8:30 Thermal Management: Setting the Stage for Growth Brad Faulconer
9:45 – 12:45 Group Tours and Product Demos nVent Team Lead
• Group B – 1) BIS Demo Room Tour 2) IHS Demo Room 3) Manufacturing Tour 4) Lab Tour Lydia Swanson
• Group C – 1) Lab Tour 2) Manufacturing Tour 3) IHS Demo Room 4) BIS Demo Room Salina Cheng
• Group D – 1) Manufacturing Tour 2) Lab Tour 3) BIS Demo Room 4) IHS Demo Room Sam Stanton
Beth Wozniak
CHIEF EXECUTIVE OFFICER
Beth Wozniak was announced as the future CEO of nVent in 2017 before the
separation from Pentair, and assumed that role at separation. She previously served as
Pentair's senior vice president and president of its Electrical segment, and as president
of Pentair's Flow & Filtration Solutions global business unit, respectively. Prior to joining
Pentair in 2015, Wozniak held several leadership and program management positions
at Honeywell and its predecessor AlliedSignal. She was president of Honeywell’s
Environmental and Combustion Controls business. She also 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. Wozniak holds a Bachelor of Engineering
degree from McMaster University in Hamilton, Ontario, Canada and an MBA from York
University in Toronto.
Stacy McMahan
EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER
Stacy McMahan was announced as the future CFO of nVent in 2017 before the
separation from Pentair, and assumed that role at separation. Prior to joining nVent, she
was the CFO of Spectranetics Corporation, a medical device company which has a
strong track record in growth and was acquired by Royal Philips. Prior to her role at
Spectranetics, McMahan was the CFO of MSA Safety Incorporated. Previously, she
held a number of senior financial leadership positions at Thermo Fisher Scientific,
Johnson & Johnson, and Eli Lilly & Company. McMahan holds an MBA degree from
Harvard Business School and a Bachelor of Science degree in Finance from Oklahoma
State University.
Brad Faulconer
PRESIDENT, THERMAL MANAGEMENT
Paul Thomas
VICE PRESIDENT, INDUSTRIAL HEATING SOLUTIONS, THERMAL MANAGEMENT
Paul Thomas has over 20 years of experience at Pentair and nVent in various positions
including Gulf Coast East General Manager, Director of Strategic Business Units,
VP/GM USA and Latin America for Thermal, VP/GM Global Industrial Heating Solutions.
Prior to employment with Pentair, Thomas worked for Schlumberger for 10 plus years in
various locations and roles including Field Engineering, Sales, and General
Management. Thomas holds a Bachelor of Science degree in Geology with a minor in
Business from Oklahoma State University.
Marty Lee
VICE PRESIDENT, BUILDING & INFRASTRUCTURE, THERMAL MANAGMENT
Marty Lee has over 20 years of combined experience at Raychem, Pentair and nVent in
various positions including Engineering, Sales, Business Development, Marketing,
Operations and Supply. Most recently he was Director, Strategic Supply and before
that Director, Industrial Heating Solutions Marketing. He served as Integration Leader
for Thermal Business Unit during Tyco Flow and Pentair merger 2011-2012, and gained
large project experience at Motiva’s Port Arthur Refinery. Lee holds a Bachelor of
Science degree in Electronic Engineering from Galway Institute of Technology and a
Management degree from the University of Phoenix.
J.C. Weigelt
VICE PRESIDENT, INVESTOR RELATIONS
J.C. Weigelt currently serves as vice president, Investor Relations for nVent and has
served in that role since May 2018 following nVent’s separation from Pentair. He
previously served as Pentair’s vice president, Investor Relations for its Electrical
segment. Prior to joining nVent, he served as senior director, Investor Relations and
Market Intelligence at St. Jude Medical. Weigelt holds an MBA degree from the
University of St. Thomas and a Bachelor of Arts degree in Marketing from Michigan
State University.