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2019 nVent Institutional Investor and Analyst Day
Redwood City, California
February 27, 2019
WelcomeJ.C. Weigelt
Vice President, Investor Relations
Agenda for Today
32019 nVent Institutional Investor and Analyst Day
Time Agenda Presenter
7:30 Welcome J.C. Weigelt
7:35 – 8:05 Review 2018 and 2019 Priorities Beth Wozniak
8:05 – 8:30 Thermal Management: Setting the Stage for Growth Brad Faulconer
8:30 – 9:30 Question and Answer Session Management
9:30 – 9:35 Safety Overview John Grantz
9:35 – 9:45 Break All
9:45 – 12:45 Group Tours and Product Demos
~45 minutes each tour
stop• Group A – 1) IHS Demo Room Tour 2) BIS Demo Room 3) Lab Tour 4) Manufacturing Tour
• 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
Forward-Looking Statement and Key Definitions
42019 nVent Institutional Investor and Analyst Day
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This presentation contains statements that we believe to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other
than statements of historical fact are forward-looking statements. Without limitation, any statements preceded or followed by or that include the words "targets," "plans," "believes,"
"expects," "intends," "will," "likely," "may," "anticipates," "estimates," "projects,“ “forecasts,” "should," "would," "positioned," "strategy," "future," or words, phrases or terms of similar
substance or the negative thereof, are forward-looking statements. All projections in this presentation are also forward-looking statements. These forward-looking statements are not
guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond our control, which could cause actual results to differ
materially from those expressed or implied by such forward-looking statements. These factors include adverse effects on our business operations or financial results as a result of the
consummation of our separation from Pentair (“the Separation”); the ability of our business to operate independently following the Separation; overall global economic and business
conditions impacting our business; the ability to achieve the benefits of our restructuring plans; the ability to successfully identify, finance, complete and integrate acquisitions;
competition and pricing pressures in the markets we serve, including the impacts of tariffs; the strength of housing and related markets; volatility in currency exchange rates and
commodity prices; inability to generate savings from excellence in operations initiatives consisting of lean enterprise, supply management and cash flow practices; increased risks
associated with operating foreign businesses; the ability to deliver backlog and win future project work; failure of markets to accept new product introductions and enhancements; the
impact of changes in laws and regulations, including those that limit U.S. tax benefits; the outcome of litigation and governmental proceedings; and the ability to achieve our long-term
strategic operating goals. Additional information concerning these and other factors is contained in our filings with the Securities and Exchange Commission, including nVent’s
Registration Statement on Form 10, as amended. All forward-looking statements speak only as of the date of this presentation. nVent Electric plc assumes no obligation, and disclaims
any obligation, to update the information contained in this presentation.
KEY DEFINITIONS AND NOTES
Except as otherwise noted all references to 2018 and 2017 represent our results for the period indicated, presented on an adjusted basis. “Organic Sales" refers to GAAP revenue
excluding (1) the impact of currency translation and (2) the impact of revenue from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales
attributable to divested product lines not considered discontinued operations. “Segment Income” represents Operating Income exclusive of non-cash intangible amortization, certain
acquisition related expenses, costs of restructuring activities, impairments and other unusual non-operating items. Return on Sales ("ROS") equals Segment Income divided by Sales.
See appendix for GAAP to non-GAAP reconciliations.
nVent OverviewBeth Wozniak
Chief Executive Officer
62019 nVent Institutional Investor and Analyst Day
Leading Electrical Company Focused on Connection and Protection
Diversified portfolio with strong financials
Thermal Management
28%
Industrial
Company Characteristics
VerticalsSegments Geographies
45%Infrastructure
13%
Commercial &Residential
27%
Energy
15%
Industry-leading positions and strong brands
Focused on improving utilization, lowering costs and maximizing customer uptime
Attractive margin profile
Strong free cash flow generation
2018 Financials
~19%ROS
~$2.2BRevenue
Enclosures
46%Electrical &Fastening Solutions(“EFS”)
26% Other Developed
2%
Developed Europe
22%
Developing
10%US and Canada
66%
72019 nVent Institutional Investor and Analyst Day
Our nVent Strategy
Driving a strategy for growth and performance
Drive Productivity and Velocity
One nVent
Pursue Targeted Bolt-on Acquisitions
Accelerate Innovation and
Connected Solutions
Grow Globally and in
Developing RegionsFocus on Attractive Verticals
82019 nVent Institutional Investor and Analyst Day
Macro Trends are Favorable
Trends drive use of more electrical products
Demographic
Shifts
Technology and
Connectivity
Electrification and
Urbanization
Safety and
Security
92019 nVent Institutional Investor and Analyst Day*Source: Analysis is based on estimates only, Publicly available data and industry data sources. Only technologies currently served by nVent are part of this analysis. Substitute products are not included.
Focus on Attractive Verticals
Industry outlook remains positive
Growth Focus
• Lower cost of ownership and
installation
• Specification selling
• Global new products
• New products, global focus
• Connected solutions and digital
tools
• MRO focus
• Connected solutions
• Late cycle energy projects
• Aligned go-to-market and key
account penetration
• New products
Verticals*Total Industry
($B)
Growth
2018
(%)
Expected
Growth
2019
(%)
Industrial 16 5 3
Commercial 13 4 2
Energy 13 (2) 1 - 3
Infrastructure 18 5 4
Total 60 ~3.5 ~2 - 3
Ind
us
tria
lC
om
merc
ial
En
erg
yIn
fra
str
uc
ture
2018 Priority Scorecard
112019 nVent Institutional Investor and Analyst Day
2018 nVent Priorities and Results
Overall a successful year
Stand up nVent as a Separate Company1
Drive Organic Sales growth2
Stabilize Enclosures Margin3
122019 nVent Institutional Investor and Analyst Day
1. Stand up nVent as a Separate Company
Significant effort across the enterprise to set up a new public company
132019 nVent Institutional Investor and Analyst Day
2. Drive Organic Sales Growth: 5% Organic Growth FY 2018
Sales growth accelerated throughout the year
Attractive Verticals
Up high single-digits
Globally and in
Developing Regions
China, India, Middle East
Up high teens
Innovation and
Connected Solutions
32 new products
Data Centers and
Networking
Solutions
Commercial
Rail and Transit
Industrial
One nVent
Up high single-digits
Strategic partnership with
distribution
Digital Product
Information 98%
142019 nVent Institutional Investor and Analyst Day
3. Stabilize Enclosures Margin
Expect margin expansion to continue in 2019
Recent Margin History
Major capacity expansion + automation 2016 - 2017
• New factory plus expansions in Reynosa, Mexico
• New distribution center in Dallas
• New automated Wall Mount line
• Build out of High Density Cooling business
All new operations stable and productivity accelerating
2H 2018 margin expansion while growing sales 8%
organically
• 70bps margin expansion in Q4 2018
• Cycle time reduction
• Local supply chains and channels
• Leading Data Center Technology
• Expanding Industrial and Infrastructure applications
• Localized products, footprint investments
• Global channel
• Configurators and real time pricing
• Channel integration
Digital Customer Experience
Attractive Verticals
Align Value Chain to Serve
Fast Growth Regions
Strong Position to Support Growth
2019 Priorities
162019 nVent Institutional Investor and Analyst Day
2019 nVent Priorities
Deliver shareholder value
Drive Organic Sales growth1
Expand Margins2
Execute our Capital Allocation Strategy3
172019 nVent Institutional Investor and Analyst Day
Attractive Vertical: Industrial
Designing new and differentiated solutions based on customer needs
Leading Solutions Focus for Growth Key Applications
Modular and wall-
mount solutions to
enable design flexibility
Connected cooling
solutions to ensure
reliability
Protection for sanitary
and corrosive
environments
Holistic end-to-end digital customer
experience
Innovation that improves safety,
reliability and connectivity
Simplifying product selection and
configuration
Focused growth in key global areas
Strengthen relationships with global
channel partners
Material Handling
Food & Beverage
Petrochem
18
Attractive Vertical: Data Centers and Networking Solutions
Fastening and Fixing
Rack
Power
Monitoring
Racks
Aisle Containment
Enclosures
Access
Environment
Cable Support and
Pathways
Leak Detection
Electrical Protection
Precision and Liquid
Cooling
Cable
Management
SMART
2019 nVent Institutional Investor and Analyst Day
Offering a flexible modular portfolio, combined with design/project support
Driving Growth in DNS
Focusing on high density heat applications for hyper scale datacenters
Adding new products for power and cooling solutions
Redeployment of sales teams to focus on value added applications
Strengthening relationships with global channel partners
192019 nVent Institutional Investor and Analyst Day
Attractive Vertical: Commercial
Driving demand with specifying engineers and contractors
Leading Solutions Aligned for Growth Protecting Entire Buildings
Expanding selling focus in
targeted cities
Improving project
specifications with architects
and engineers
Identifying contractors earlier
for greater win rate
Collaborating across
segments and channels
Fastening and Support
Seismic Protection
Lightning Protection
Grounding & Bonding
Enclosures
Cable Management
Floor Heating
Heat Loss Replacement
Fire-Rated Wiring
Space Savings
Pipe Freeze Protection
Snow Melting and De-Icing
202019 nVent Institutional Investor and Analyst Day
Attractive Vertical: Rail and Transit
Global solutions for mission critical rail applications
1. nVent HOFFMAN outdoor pole mount
enclosure
2. nVent SCHROFF customized cooling
solution
3. nVent CADDY cable management
system
4. nVent ERIFLEX metallic braided cable
for EMC protection
Key Global Accounts Focus Applications One nVent Approach
Surge and
Lightning
Protection
Heating systems
for switches,
third rails and
overhead wires
Signaling
Enclosures
Signaling systems integrators
Rolling stock and equipment OEMs
Majority of projects outside NA
Supplied to a major signaling
systems integrator
212019 nVent Institutional Investor and Analyst Day
One nVent
Driving transformation with a goal to grow our business
Build Scale and Capability to Accelerate Growth and Performance
Commercial Excellence
Distribution Strategy
Common Processes, Transformation and Data Analytics
nVent Brand
Digital
Spark Management System
222019 nVent Institutional Investor and Analyst Day
One nVent: Spark Management System
We are building a high-performance culture
Growth
People
Lean
Velocity
Digital
Growth is the foundation of Spark, driving shareholder, customer and employee value
People are at the core of Spark, positively impacting our business and growing their careers
Lean is the relentless pursuit of eliminating waste and increasing velocity
Velocity is increasing speed in all we do for each other and our customers
Digital transforms our products and how we do business, improving both customer and employee experiences
232019 nVent Institutional Investor and Analyst Day
One nVent Distribution Partnerships
Building global relationships for enterprise-wide selling
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
242019 nVent Institutional Investor and Analyst Day
Digital: Accelerating our Digital Transformation
Transforming nVent to be a digital business
2018 Achievements
One nVent website
One CRM platform
98% digital product data available
Enclosures configurators launched
2019 Accelerate Digital Transformation
Align business processes
Focus on analytics
Implementing new pricing, service, people
management, and transportation and
warehouse management platforms
Driving Growth and
Margin Expansion
Digitize Support Functions
Business Strategy
Digitize Go-To-Market Offer Connected Solutions
Digitize Operations
Improve Customer and Employee Experiences
252019 nVent Institutional Investor and Analyst Day
nVent SCHROFF: Digital Initiative
Empowerment through digitization
CREATION
Turn your ideas into immediate results! Try out
new front panel configurator and receive a 3D
printed version at the booth using one of our two
live 3D printers.
VELOCITY
Get ready for a rapid design experience with out
redesigned product configurator, which includes a
built-in wizard to guide you through each step of
the configuration and will allow you to see instant
prices at the end of the configuration.
INNOVATION
Learn and collaborate with our industry experts!
nVent SCHROFF products can support
applications such as IoT, Industry 4.0,
autonomous driving and beyond. We will be
presenting our new PXI Express system, small
form factor enclosures and newly designed
components for our electronics cabinets.
262019 nVent Institutional Investor and Analyst Day
Accelerate Innovation
Full portfolio of exciting new products
Expand Configurators
Enhance digital customer
experience
Drives velocity
Rigid bracing solutions
for mechanical, electrical
and plumbing
Builds on fire protection
portfolio
Seismic Bracing
Grounding and Bonding
Enhance user experience
Isolated lightning
protection, ground bars,
expanding surge
protection
High Density In-Row/Liquid Cooling
New solutions for
managing increasing heat
loads
Direct liquid cooling
272019 nVent Institutional Investor and Analyst Day
Drive Organic Growth
Strategic themes to deliver sustained and profitable growth
One nVent | Customer Back | Focused New Teams
Attractive Verticals
• Commercial, Data Centers and Networking Solutions, Industrial and Rail and Transit
• Growing high single-digits
Strategic Partnerships
New Products
• Distributor partnerships
• Represents over $400M in sales today
• Growing high single-digits
• Continue to improve vitality score
• Customer back innovation
• Contributor to growth and margin expansion
282019 nVent Institutional Investor and Analyst Day
Productivity and Velocity
Meaningful initiatives driving growth and expanding margins
Materials Operations Logistics SG&A
Track/trace visibility
Customer collaboration
in ordering/shipping
patterns
Transportation
management system
Warehouse
management system
Lean materials and
information flow
Category management
expertise
Value added value
engineering
Supplier risk reduction
Lean enterprise; end-to-
end business process
optimization and velocity
Enhanced sales
inventory and
operations planning
Capacity and smart
factory investments
First pass yield quality
Lean process and
information flow
Digital collaboration,
Configure-Price-Quote
and customer service
Common processes,
systems and analytics
292019 nVent Institutional Investor and Analyst Day
Margin Expansion
Managing price and productivity to offset inflation, fund growth and expand margins
Price Productivity
End-to-end supply chain optimization
Logistics and distribution improvements
Factory productivity
Material productivity
G&A optimization
Funding investments in digital and R&D
Progress towards benchmark G&A cost structure
Inflation
Material inflation
Direct tariff impact is expected to be $6 - 8M
Logistics and freight inflation
Wage inflation
Pricing excellence
New pricing software implementation
Value pricing for projects / custom products
Mitigate material and freight inflation
Margin Expansion of
40 - 60bps
˃
302019 nVent Institutional Investor and Analyst Day
3. Capital Allocation: Our Foundation
Strong cash flow and capital deployment to drive shareholder value
• Net debt to EBITDA ratio at 1.7X
• Target of 1.5X - 2.0X
• Ample capability to go up to 2.5X for share repurchases or strategic M&A deal
• Investment Grade enables competitive cost of capital
• Credit rating BBB- (S&P) and BBB (Fitch)
• Focus on bolt-on acquisitions
• Target ROIC greater than WACC in 2 - 3 years
• Accretive at 1 year
• Generated Free Cash Flow of $301M in 2018
• ~$80M in share repurchases to date
• Paid quarterly dividends of $0.175 per ordinary share
• ~$800 million remains under current share repurchase program through July 2021
• Expect capex of ~2 - 3% of sales in 2019
• Investments in digital and capacity expansion
• R&D investment
Manage LeverageReinvest in the
businessM&A
Return Excess Cash to
Shareholders
312019 nVent Institutional Investor and Analyst Day
*Market and other conditions including M&A may impact the allocation
Expect to Generate ~$320M of Free Cash Flow in 2019
Strong balance sheet and active capital allocation
Generated $301M of pro forma Free Cash Flow
Repurchased ~$60M of shares
Paid a quarterly dividend
Expect to generate ~$320M of Free Cash Flow
Expect to use excess cash to reduce shares by ~2%*
Already repurchased ~$20M in Q1
Expect to pay a competitive dividend
~$800 million remains under current share repurchase
program through July 2021
2018
2019
2018
~181M
2019 Guidance
~177M
Diluted Weighted Average
Shares Outstanding
322019 nVent Institutional Investor and Analyst Day
Capital Deployment to M&A
Strong cash flow conversion provides capital allocation optionality
Full Pipeline
• Opportunities for bolt-on acquisitions
• Potential targets have sales between $50 - $100M
• Opportunities across geographies and segments
• Fits nVent value proposition
Benefits
• Add scale and operating effectiveness
• Add value through revenue and cost synergies
• Accretive to earnings
• Strategic use of cash
Criteria
• nVent value proposition
• Ability to differentiate
• Accretive in one year
• Target ROIC greater than WACC in 2 - 3 years
Mission Critical Solutions | High Cost of Failure | Reduced Installation Costs
332019 nVent Institutional Investor and Analyst Day
2019 nVent Plan
Strategy delivers solid returns, in line with long-term outlook
Sales Growth
Attractive Margins
Free Cash Flow
Dividends
1 - 2 Points above GDP
EPS grows multiple points faster than sales
> Net income
CompetitiveS&P 400 median at ~30% payout
2 - 4% Organic GrowthExpected Real GDP at 2 - 3%
40 - 60bp ROS Expansion
EPS of $1.80 - $1.90Represents 5 - 10% constant currency growth
~$320M
100% of adj. NI conversion
~40% Payout Ratio
Long Term Outlook 2019 Guidance
Capital Allocation Strategic bolt-ons and share repurchases Strategic bolt-ons and share repurchases
Segment ReviewEnclosures and EFS
352019 nVent Institutional Investor and Analyst Day
Enclosures Overview
Solid performance globally across all targeted regions and focused verticals
Industrial
Description
Verticals Geographies
61%Commercial &Residential
9%
Infrastructure
20%
Energy
10%
We provide innovative solutions that protect, connect and manage heat in critical
electronics, communication, control and power equipment.
2018 Financials
~17%ROS
~$1.0BRevenue
Other Developed
1%
Developed Europe
20%
Developing
10%
US and Canada
69%
362019 nVent Institutional Investor and Analyst Day
Enclosures Strategy
Focusing our resources to our most critical initiatives and executing with velocity
Align to Serve
• End-to-end business process focus
• Align value streams
• Integrate supply chain, drive productivity and deliver velocity
Focus on Attractive Key Verticals
• Focus effort on high potential verticals
• Develop and launch differentiated products
Grow Globally and in Developing Regions
• Localized differentiated products
• Evolve channel
Channel Coverage | Operations Optimization | Digitization | Portfolio Localization and Diversification
Digital Customer Experience
• Improve digital capabilities
• Seamlessly connect customers and channels
372019 nVent Institutional Investor and Analyst Day
Enclosures Win
Continued growth planned across multiple nVent product lines
Global reach
• 2 projects in 2018
• 3 planned projects for 2019
Focused on our Data Center and Networking
Solutions capabilities
Sole spec in all future projects
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
Global Hotel and Casino Chain
382019 nVent Institutional Investor and Analyst Day
Enclosures Summary
Great momentum second half of 2018, positioned for continued growth in 2019
Enclosures expects to deliver revenue and income growth:
Key investments that deliver quality, velocity and productivity
Setting value streams to exceed industry service requirements
We expect to grow by:
Focusing on high-growth segments
Launching VOC-based new products that meet customer needs
Enhancing end-to-end digital capabilities
Expanding capabilities in targeted fast growth regions
We expect to expand margins by:
Managing costs, driving productivity, pricing and velocity
392019 nVent Institutional Investor and Analyst Day
EFS Overview
A global leader in electrical and fastening solutions
Commercial & Residential
Description
Verticals Geographies
58%Energy
9%
Industrial
20%
Infrastructure
13%
We provide electrical and fastening solutions that connect and protect electrical and
mechanical systems and civil structures.
2018 Financials
~25%ROS
~$570MRevenue
Other Developed
3%
Developed Europe
19%
Developing
8%
US and Canada
70%
402019 nVent Institutional Investor and Analyst Day
EFS Strategy
Strategic themes to deliver sustained and profitable growth
Price Realization | Strategic Accounts | Sales Optimization
One nVent
• Rail and Transit
• Commercial
• Distributor growth
• Price realization
Grow Globallyand in DevelopingRegions
Accelerate Innovation
• Europe and Middle East
• Localized, differentiated products
• Continued expansion in Commercial
• Seismic
• Prefab
• Grounding and Bonding
412019 nVent Institutional Investor and Analyst Day
EFS Win
Provide value-add service and product to influential end users
Customer Desire:
• Prefabricated solution for ground terminal boxes (“GTB”) for fire alarm system
• Savings in total installed cost
• Specified products per (newly adopted) building codes for fire alarm connections in New York
One nVent Approach:
• Offer prefabricated GTB with our nVent ERICO Grounding Busbars and nVent HOFFMAN Type 1 Enclosures
• nVent CADDY Design and Prefabrication
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
Prefabricated
Solutions
New York Commercial Building
422019 nVent Institutional Investor and Analyst Day
EFS Summary
Aligned and focused for execution
EFS expects to deliver revenue and income growth
Continued growth in Commercial and Industrial
We expect to grow by:
Focused growth initiatives
Expansion into Middle East and Europe
New product introductions
We expect to expand margins by:
Driving pricing to offset inflation
Productivity and lean enterprise
Thermal ManagementBrad Faulconer
President, Thermal Management
442019 nVent Institutional Investor and Analyst Day
Welcome to Thermal Management’s Redwood City Campus
Center of excellence for nVent RAYCHEM products
Center of Excellence for R&D and Heating Cable Manufacturing
R&D
• 30 technologists out of global team of ~100 employees
• 8 PhDs across core technology disciplines
• Testing lab capability enables self-certified approvals
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
1969
RAYCHEM
CHEMELEX
develops Auto-Trace,
the first polymeric
self-regulating heating
cable for industrial
use
1963
First parallel,
cut-to-length
heating cable
1981
Expanded
development to
Commercial and
Residential
applications
452019 nVent Institutional Investor and Analyst Day
Thermal Management Leadership You Will Meet Today
Deep industry experience
PAUL THOMAS
Vice President, IHS
Product Line
MARTY LEE
Vice President, BIS
Product Line
DR. LINDA KISS
Vice President,
Technology
JOHN GRANTZ
Vice President,
Integrated Supply Chain
462019 nVent Institutional Investor and Analyst Day
What You Will Hear Today
Differentiated solutions positioned for growth
Thermal Management is well positioned to deliver revenue
and income growth
Highly differentiated products and solutions
Continued strength in Commercial and Industrial MRO
Longer cycle project activity increasing
We expect to grow by:
Launch of new products and software
Expanding applications in Industrial and Commercial verticals
Growing in developing regions
We expect to expand margins by:
Driving productivity and lean enterprise
Building pricing excellence
472019 nVent Institutional Investor and Analyst Day
Thermal Management Overview
A global leader in heat-tracing solutions
Industrial
Description
Verticals Geographies
42%Infrastructure
1%
Commercial & Residential
30%
Energy
27%
We provide electrical thermal solutions that connect and protect people, critical
infrastructure, industrial processes and buildings.
2018 Financials
~25%ROS
~$620MRevenue
Other Developed
3%
Developed Europe
28%
Developing
13%
US and Canada
56%
482019 nVent Institutional Investor and Analyst Day
Thermal Management’s Heat Tracing Innovation
We provide a complete system and solution
Heat tracing is… providing
heat to maintain temperature
of fluids, by replacing the
heat lost through thermal
insulation on pipes.
Control Panel
Transformer
Lighted End Seal
Remote Configuration and Monitoringwith Supervisor software
Insulation Systems
RTD Temperature SensorPower Connection
Heating Cable
Thermal Management Solutions
492019 nVent Institutional Investor and Analyst Day
Building and
Infrastructure
Solutions
Heat Tracing for
Pipes and Surfaces
Floor Heating
Cables and Mats
Thermostats,
Controls
Fire Rated
Wiring Cables
Snow melting and de-Icing
Radiant floor warming
Liquid leak detection
Life safety power cables
Industrial Heating
Solutions
Pipe freeze protection
Process temperature maintain
Pipeline heating
Tank and vessel heating
Heat Tracing for
Plant Piping and
Vessels
Heating System
Components
Control, Monitoring
and Sensing
Turnkey
Services
Thermal Management Has Strong Competitive Advantages
502019 nVent Institutional Investor and Analyst Day
Strong Brand
Recognition
Technical
Expertise
Complete
Solutions
Ease of
Installation
and Reduced
Total Cost
History of innovative and
high-quality products and
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
512019 nVent Institutional Investor and Analyst Day
Thermal Management Strategy
Strategic themes to deliver sustained and profitable growth
Connected Solutions
• Advanced industrial control and monitoring
• Thermostats and detection
• Smart pipelines
• Engineering automation
Attractive Verticals
• Industrial
• Commercial / Residential
• Rail and Transit
• Data Centers
Global Growth and Localization
• Silk Road major opportunities
• Fit for purpose products and localization
• China and Russia focus
One nVent – Distribution | Vertical Expansion | Digital Transformation
522019 nVent Institutional Investor and Analyst Day
Industrial Heating Solutions (“IHS”) – MRO and Projects
Installed base | Application expertise | Major project execution
Tank Heating Systems
Cryogenic Tank BaseHeating Systems
Pipe, Vessel & TankThermal Insulation Systems
Leak Detection Systems
Ramp Heating
Temperature Controland Monitoring Systems
Pre-Insulated Pipe
OutdoorPipe and Valve
Freeze Protection
Heat-Traced TubingBundles andInstrumentWinterization
Fire Performance cables
Heat-Tracing PowerDistribution Systems
Maintenance, Repair, Overhaul
(“MRO”)
Significant installed base in facilities across the globe
Extensive sales network with application expertise and local technical support
Product sold as an approved system with typical replacement in-kind
Capital Projects
Fuels longer term high-margin MRO business
Strong history of winning large capital projects
Advanced design tools, global engineering centers and project execution footprint
532019 nVent Institutional Investor and Analyst Day
Example: Pipeline Heating – Gulf Coast Swamplands
Safer and more reliable transportation of crude oil
Application:
12” 36 mile Vacuum Gas Oil (“VGO”) buried and submerged
pipeline
Crossing historic wetlands throughout the Gulf Coast region
Scope:
nVent RAYCHEM Skin-Effect Trace-Heating System (“STS”)
with fiber optic distributed temperature sensing (“DTS”) and
pre-fabricated / pre-insulated pipe spools (“PIP”)
Providing consistent power to maintain the pipeline at 129ºF
for peak product flow
Complete system including the design, engineering, supply
and installation supervision of the entire STS system
542019 nVent Institutional Investor and Analyst Day
Building and Infrastructure Solutions (“BIS”) – Specified Applications
Full range of safety, performance and comfort solutions
Rail Heating
552019 nVent Institutional Investor and Analyst Day
BIS Application Growth
Growth through conversion of alternate technologies and construction methods
Fire Rated Wiring
Rail Heating Hot Water Maintenance
Floor Heating
nVent PYROTENAX life safety circuit protection
Exceeds industry standards
nVent RAYCHEM self-regulating electric heat trace cable for enhanced building performance
LEED credits for energy and water savings
nVent RAYCHEM high performance rail de-icing
Safety and reliability
nVent NUHEAT electric floor heating
Made to measure for ease of installation
Home automation
562019 nVent Institutional Investor and Analyst Day
Thermal Management Commercial Project Win
Critical life safety electrical circuit protection
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
placement
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
Historic New York City Hotel
Fire Alarm Control Unit Fire Pump
Generator
Pressurization Fans
Firefighters Elevator
Smoke Extraction Fans
Figure 1. Typical Critical Wiring System
572019 nVent Institutional Investor and Analyst Day
Connected Solutions New Product Family
Growth with new product introductions
RAYCHEM ELEXANT family launches
Cloud connectivity and analytics
Expanded services
Strategic Actions 2019 Focus
ELEXANT 4010i
Controllers
ELEXANT Wireless
Monitoring
Controllers
ELEXANT
Panel Controllers
2018
ELEXANT
350c
Controllers
ELEXANT
Smart Bridge
Controllers
Digitization: connectivity and analytics
User experience
Global platforms
Launching a New ELEXANT Family of Connected Controls
2019
582019 nVent Institutional Investor and Analyst Day
Advanced Engineering Automation with TracerLynx Design Software
Customer case studies support 1% overall system savings
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
592019 nVent Institutional Investor and Analyst Day
Global Growth – China and Silk Road Focus
Investing in new products and commercial capability
Industrial
Silk Road: global project sales and execution engagement
Manufacturing localization to provide fit-for-purpose products
with features valued by local customers
Commercial
Spec focus for differentiation and demand creation
Focus on safety and building performance
Infrastructure
Rail and Transit focus with One nVent portfolio
Airport and Data Center focus with leak detection systems Silk Road development
Fuel leak detection
at Beijing airport
602019 nVent Institutional Investor and Analyst Day
Business Performance Improvement Through Spark
Significant process improvements delivering financial results
>900 bps improvement in Operating Margin since 2012
Lean Manufacturing Lean Engineering New Product Development
Redwood City Plant• ~50% cycle time reduction
• ~32% efficiency gains
• ~25% sq. foot reduction
NPD Process• Standard work and visual mgmt.
• 2X vitality
• ~25% annual increase in 5th year
incremental revenue
Global Engineering Centers• Standard work and visual mgmt.
• Work share across 8 offices
• ~80% lead time reduction
• ~100% improvement
in production output
612019 nVent Institutional Investor and Analyst Day
Thermal Management Summary
Differentiated solutions positioned for growth
Thermal Management is well positioned to deliver
revenue and income growth
Highly differentiated products and solutions
Continued strength in Commercial and Industrial MRO
Longer cycle project activity increasing
We expect to grow by:
Launch of new products and software
Expanding applications in Industrial and Commercial verticals
Growing in developing regions
We expect to expand margins by:
Driving productivity and lean enterprise
Building pricing excellence
62
At nVent, we believe that safer systems ensure a more secure world. We connect and protect our
customers with inventive electrical solutions.
Agenda for Today
632019 nVent Institutional Investor and Analyst Day
Time Agenda Presenter
7:30 Welcome J.C. Weigelt
7:35 – 8:05 Review 2018 and 2019 Priorities Beth Wozniak
8:05 – 8:30 Thermal Management: Setting the Stage for Growth Brad Faulconer
8:30 – 9:30 Question and Answer Session Management
9:30 – 9:35 Safety Overview John Grantz
9:35 – 9:45 Break All
9:45 – 12:45 Group Tours and Product Demos nVent Team Lead
~45 minutes each tour
stop• Group A – 1) IHS Demo Room Tour 2) BIS Demo Room 3) Lab Tour 4) Manufacturing Tour Jessica Minter
• 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
nVent Leadership Bios
nVent Leadership Bios
652019 nVent Institutional Investor and Analyst Day
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.
nVent Leadership Bios
662019 nVent Institutional Investor and Analyst Day
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.
nVent Leadership Bios
672019 nVent Institutional Investor and Analyst Day
Brad Faulconer PRESIDENT, THERMAL MANAGEMENT
Brad Faulconer was announced as the future President of Thermal Management in 2017 before the separation from Pentair, and assumed that role at separation. Faulconer has 27 years of experience with Tyco, Pentair and nVent. Prior to the separation, he held several leadership roles at Pentair including Vice President of Thermal Management; Vice President of Thermal Building Solutions; and Vice President of Marketing for Thermal Management. Previously, he held various general management and marketing leadership roles with Tyco Thermal Controls in the U.S. and Asia, as well as various sales roles with Valquip Corporation. Faulconer holds a Bachelor of Science degree in Civil Engineering from Villanova University and completed the Harvard Business School Program for Management Development (PMD).
nVent Leadership Bios
682019 nVent Institutional Investor and Analyst Day
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.
nVent Leadership Bios
692019 nVent Institutional Investor and Analyst Day
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.
nVent Leadership Bios
702019 nVent Institutional Investor and Analyst Day
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.
Appendix
GAAP to Non-GAAPMeasurements & Reconciliations
Reported to Adjusted 2018 Reconciliation
722019 nVent Institutional Investor and Analyst Day
Reported to Adjusted 2017 Reconciliation
732019 nVent Institutional Investor and Analyst Day
Reported to Adjusted 2019 Reconciliation
742019 nVent Institutional Investor and Analyst Day
Organic Sales Growth and Free Cash Flow Reconciliation
752019 nVent Institutional Investor and Analyst Day