2018 nVent Investor and Analyst Day · 2018-05-03 · 2018 nVent Investor and Analyst Day New York City February 13, 2018 5/3/2018. Welcome J.C. Weigelt ... Opening Remarks Randall

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


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


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%


~$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


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


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


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


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


18

Macro Trends are Favorable

Trends Drive use of More Electrical Products

Demographic

Shifts

Technology &

Connectivity

Electrification &

Urbanization

Safety & Security


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


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


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


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


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


24

nVent Values

Living our Values is Fundamental to Achieving Our Goals

Retain our Win Right Values and Culture


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


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


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


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


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


30

Key Takeaways

Building a High Performance Growth Company

We are a Leader in Connection and Protection


• 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.


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


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

http://www.hoffmanonline.com/index.aspx

35

Unifying Our Strong Brands Under nVent

A “Branded House” That Better Enables Portfolio Selling

1966

1988

1994

2012

2015

2018


http://www.hoffmanonline.com/index.aspx

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


37

Growth Mindset…With Rigorous Execution to Deliver on Commitments


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)


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


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


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


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



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


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


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


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


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


• 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


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


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


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.”


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


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


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


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%


58

Key Takeaways

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

Thermal ManagementBrad Faulconer

President, Thermal Management

60


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


Other Developed14%

We provide electric thermal solutions that connect and protect

people, critical infrastructure, industrial processes and

buildings.

Who We Are: Thermal Management



US &

Canada

55%

Western Europe

29%

Developing

2%

Industrial

43%

Energy

31%

Commercial

& Residential

26%

$622MRevenue

~24%ROS


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


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



• Digitize the customer experience


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



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


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


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




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


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


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


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


− Launch of new products & software

− Delivering Vertical growth in Industrial, Commercial and Infrastructure

− Expanding regional presence through localization


− Driving productivity, pricing and velocity


Electrical & Fastening Solutions (EFS)Robert van der Kolk

President, EFS

73


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


• Innovative new products and solutions

• Targeted vertical and regional focus

• Further enhanced customer experience


• Price/Cost, productivity, lean enterprise and simplicity


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



US &

Canada

70%

Western Europe

18%

Developing

2%

Industrial

19%

Energy

10%

Infrastructure

14%

Commercial

57%

$541MRevenue

~26%ROS


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


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



• Digitize customer experience


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



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


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&


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




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


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


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


Investment Thesis & Financial OutlookStacy McMahan

Chief Financial Officer

85


An Attractive Long-Term Investment


• 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


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


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


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


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%


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


• 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


- 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


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



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


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


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.


105


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.


106


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.


107


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.


108


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.


109


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.


110


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.


111


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.


112


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.


113


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.


114



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


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



118

Full Year 2017 and 2018 Core Sales Growth Reconciliation


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)

Documents

2018 nVent Investor and Analyst Day · 2018-05-03 · 2018 nVent Investor and Analyst Day New York City February 13, 2018 5/3/2018. Welcome J.C. Weigelt ... Opening Remarks Randall