2019 nvent institutional investor and analyst day · nvent overview beth wozniak chief executive...

2019 nVent Institutional Investor and Analyst Day

Redwood City, California

February 27, 2019

WelcomeJ.C. Weigelt

Vice President, Investor Relations

Agenda for Today


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


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


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%


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


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


2018 nVent Priorities and Results

Overall a successful year

Stand up nVent as a Separate Company1

Drive Organic Sales growth2

Stabilize Enclosures Margin3


1. Stand up nVent as a Separate Company

Significant effort across the enterprise to set up a new public company


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%


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


Align Value Chain to Serve

Fast Growth Regions

Strong Position to Support Growth

2019 Priorities


2019 nVent Priorities

Deliver shareholder value

Drive Organic Sales growth1

Expand Margins2

Execute our Capital Allocation Strategy3


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


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


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


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


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


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


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


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


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.


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


Drive Organic Growth

Strategic themes to deliver sustained and profitable growth

One nVent | Customer Back | Focused New Teams


• 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


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


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

˃


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


*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


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


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


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%


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


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


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


EFS Overview

A global leader in electrical and fastening solutions

Commercial & Residential

Description


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%


EFS Strategy


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


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


EFS Summary

Aligned and focused for execution

EFS expects to deliver revenue and income growth

Continued growth in Commercial and Industrial


Focused growth initiatives

Expansion into Middle East and Europe

New product introductions


Driving pricing to offset inflation

Productivity and lean enterprise

Thermal ManagementBrad Faulconer

President, Thermal Management


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


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


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


Launch of new products and software

Expanding applications in Industrial and Commercial verticals

Growing in developing regions


Driving productivity and lean enterprise

Building pricing excellence


Thermal Management Overview

A global leader in heat-tracing solutions

Industrial

Description


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%


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

https://www.youtube.com/watch?v=cU976q5pLv4

Thermal Management Solutions


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


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


Thermal Management Strategy


Connected Solutions

• Advanced industrial control and monitoring

• Thermostats and detection

• Smart pipelines

• Engineering automation


• 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


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


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


Building and Infrastructure Solutions (“BIS”) – Specified Applications

Full range of safety, performance and comfort solutions

Rail Heating


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


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


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


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


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


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


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


Launch of new products and software

Expanding applications in Industrial and Commercial verticals

Growing in developing regions


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


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



Beth Wozniak CHIEF EXECUTIVE OFFICER

Beth Wozniak was announced as the future CEO of nVent in 2017 before the separation from Pentair, and assumed that role at separation. She previously served as Pentair's senior vice president and president of its Electrical segment, and as president of Pentair's Flow & Filtration Solutions global business unit, respectively. Prior to joining Pentair in 2015, Wozniak held several leadership and program management positions at Honeywell and its predecessor AlliedSignal. She was president of Honeywell’s Environmental and Combustion Controls business. She also held several executive positions at Honeywell including president of its Sensing and Control business; vice president of Business Integration; vice president of Six Sigma; and vice president of Engineering and Program Management. Wozniak holds a Bachelor of Engineering degree from McMaster University in Hamilton, Ontario, Canada and an MBA from York University in Toronto.



Stacy McMahan EXECUTIVE VICE PRESIDENT, CHIEF FINANCIAL OFFICER

Stacy McMahan was announced as the future CFO of nVent in 2017 before the separation from Pentair, and assumed that role at separation. Prior to joining nVent, she was the CFO of Spectranetics Corporation, a medical device company which has a strong track record in growth and was acquired by Royal Philips. Prior to her role at Spectranetics, McMahan was the CFO of MSA Safety Incorporated. Previously, she held a number of senior financial leadership positions at Thermo Fisher Scientific, Johnson & Johnson, and Eli Lilly & Company. McMahan holds an MBA degree from Harvard Business School and a Bachelor of Science degree in Finance from Oklahoma State University.



Brad Faulconer PRESIDENT, THERMAL MANAGEMENT

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).



Paul Thomas VICE PRESIDENT, INDUSTRIAL HEATING SOLUTIONS, THERMAL MANAGEMENT Paul Thomas has over 20 years of experience at Pentair and nVent in various positions

including Gulf Coast East General Manager, Director of Strategic Business Units,

VP/GM USA and Latin America for Thermal, VP/GM Global Industrial Heating Solutions.

Prior to employment with Pentair, Thomas worked for Schlumberger for 10 plus years in

various locations and roles including Field Engineering, Sales, and General

Management. Thomas holds a Bachelor of Science degree in Geology with a minor in

Business from Oklahoma State University.



Marty Lee VICE PRESIDENT, BUILDING & INFRASTRUCTURE, THERMAL MANAGMENT Marty Lee has over 20 years of combined experience at Raychem, Pentair and nVent in

various positions including Engineering, Sales, Business Development, Marketing,

Operations and Supply. Most recently he was Director, Strategic Supply and before

that Director, Industrial Heating Solutions Marketing. He served as Integration Leader

for Thermal Business Unit during Tyco Flow and Pentair merger 2011-2012, and gained

large project experience at Motiva’s Port Arthur Refinery. Lee holds a Bachelor of

Science degree in Electronic Engineering from Galway Institute of Technology and a

Management degree from the University of Phoenix.



J.C. Weigelt VICE PRESIDENT, INVESTOR RELATIONS

J.C. Weigelt currently serves as vice president, Investor Relations for nVent and has served in that role since May 2018 following nVent’s separation from Pentair. He previously served as Pentair’s vice president, Investor Relations for its Electrical segment. Prior to joining nVent, he served as senior director, Investor Relations and Market Intelligence at St. Jude Medical. Weigelt holds an MBA degree from the University of St. Thomas and a Bachelor of Arts degree in Marketing from Michigan State University.

Appendix

GAAP to Non-GAAPMeasurements & Reconciliations

Reported to Adjusted 2018 Reconciliation


Organic Sales Growth and Free Cash Flow Reconciliation


2019 nvent institutional investor and analyst day · nvent overview beth wozniak chief executive...

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