Forward-looking Statements
This report 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," "forecast" or words,
phrases or terms of similar substance or the negative thereof, are
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, including due to the impact of the
novel coronavirus 2019 ("COVID-19") pandemic; 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; 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 U.S. Securities and Exchange Commission (the "SEC"), including this
Quarterly Report on Form 10-Q and ITEM 1A. of our   Annual Report on Form 10-K
for the year ended December 31, 2019. All forward-looking statements speak only
as of the date of this report. nVent Electric plc assumes no obligation, and
disclaims any obligation, to update the information contained in this report.
Overview
The terms "us," "we," "our," "the Company" or "nVent" refer to nVent Electric
plc. nVent is a leading global provider of electrical connection and protection
solutions. We believe our inventive electrical solutions enable safer systems
and ensure a more secure world. We design, manufacture, market, install, and
service high performance products and solutions that connect and protect some of
the world's most sensitive equipment, buildings, and critical processes. We
offer a comprehensive range of enclosures, electrical connections and fastening,
and thermal management solutions across industry-leading brands that are
recognized globally for quality, reliability, and innovation.
We classify our operations into business segments based primarily on types of
products offered and markets served. We operate across three segments:
Enclosures, Thermal Management, and Electrical & Fastening Solutions, which
represented approximately 50%, 23% and 27% of total revenues during the first
three months of 2020, respectively.

•Enclosures-The Enclosures segment provides inventive solutions that protect, connect and manage heat in critical electronics, communication, control and power equipment. From metallic and non-metallic enclosures to cabinets, subracks and backplanes, it offers the physical infrastructure to host, connect and protect server and network equipment, as well as indoor and outdoor protection for test and measurement, aerospace and defense applications in industrial, infrastructure, energy and commercial verticals.

•Thermal Management-The Thermal Management segment provides electric thermal solutions that connect and protect critical buildings, infrastructure, industrial processes and people. Its thermal management systems include heat tracing, floor heating, fire-rated and specialty wiring, sensing and snow melting and de-icing solutions for use in industrial, commercial & residential, energy and infrastructure verticals. It's highly reliable and easy to install solutions lower total cost of ownership to building owners, facility managers, operators and end users. •Electrical & Fastening Solutions-The Electrical & Fastening Solutions segment provides fastening solutions that connect and protect electrical and mechanical systems and civil structures. Its engineered electrical and fastening products are innovative cost efficient and labor saving connections that are used across a wide range of verticals, including commercial, industrial, infrastructure and energy.


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On April 30, 2018, Pentair plc ("Pentair" or "former Parent") completed the
separation of its Water business and its Electrical business into two
independent, publicly-traded companies (the "separation"). To effect the
separation, Pentair distributed to its shareholders one ordinary share of nVent
for every ordinary share of Pentair held as of the record date of April 17,
2018. As a result of the distribution, nVent is an independent publicly-traded
company and began regular way trading under the symbol "NVT" on the New York
Stock Exchange on May 1, 2018.
On August 30, 2019, as part of our Enclosures segment, we completed the
acquisition of Eldon Holding AB ("Eldon") for $127.8 million, net of cash
acquired. Eldon is an innovative European based manufacturer of enclosures that
protect sensitive electrical, electronic and data and telecommunications
components.
On February 10, 2020, we acquired substantially all of the assets of WBT LLC
("WBT") for approximately $30.0 million in cash, subject to purchase price
adjustments and a holdback. The U.S. based WBT business manufactures
high-quality cable tray systems that will be marketed as part of the nVent CADDY
product line within our Electrical & Fastening Solutions segment and nVent
HOFFMAN product line within our Enclosures segment.

COVID-19


In March 2020, the World Health Organization declared COVID-19 a pandemic.
COVID-19 has resulted, and is likely to continue to result, in significant
economic disruption and has adversely affected, and is likely to continue to
adversely affect, our business. As of the date of this filing, significant
uncertainty exists concerning the magnitude of the impact and duration of the
COVID-19 pandemic and its impact on our business.
Governments around the world have also enacted various measures, including
orders to close all businesses not deemed "essential," isolate residents to
their places of residence and practice social distancing when engaging in
essential activities. We anticipate that these actions and the global health
crisis will negatively impact business activity globally.
Our top priority is the safety and well-being of our employees. We have taken
proactive actions to adopt social distancing policies at our locations,
including working remotely, where possible, limiting the number of employees
attending meetings, and suspending employee travel. All our of our facilities
have COVID-19 readiness plans and we have also launched updated wellness
programs for employees. We continue to implement guidelines from the World
Health Organization and Centers for Disease Control and Prevention as they
evolve.
We also remain focused on continuing to serve our customers and support critical
industries and essential infrastructure such as medical, data centers and
networking solutions, energy and defense, among others. As of the date of this
filing, all of our manufacturing sites are operational and we have not
experienced any significant supply chain disruptions. During the latter part of
the first quarter of 2020, we experienced a deceleration of order rates,
corresponding with the timeline of the global spread of the pandemic and related
heightened measures enacted by governments around the world.
In response to the adverse effects of the pandemic, we are taking actions to
lower costs, preserve our liquidity and manage cash flow. These actions include,
but are not limited to:
•Limiting discretionary spending across the organization;
•Reducing payroll costs, including through employee furloughs and temporarily
reducing salaries for executive officers and other senior leaders;
•Aligning our cost structure to meet demand;
•Reducing capital expenditures;
•Temporarily suspending any share repurchases;
•Optimizing working capital through inventory reduction initiatives across
business segments and focused actions to optimize customer and vendor payment
terms; and
•Deferring payment of income and payroll taxes in certain jurisdictions where
such opportunities are available.
In March 2020, as a proactive measure to maximize our liquidity in response to
the effect of the pandemic, we drew down $150.0 million on our revolving credit
facility. The proceeds will be available to be used for working capital, general
corporate or other purposes.
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In addition to actions taken to lower costs, preserve our liquidity and manage
cash flow, we remain focused on enhancing our digital and technological
capabilities. Our shift to working virtually where possible is allowing us to
accelerate our digital initiatives as we collaborate with customers and
distribution partners to enhance our websites and improve our digital product
content. We are also continuing to invest in our technological capabilities,
with new product launches in the first three months of 2020, and more expected
to be launched during the balance of this year.
We will continue to actively monitor the impacts of the pandemic and may take
further actions that alter our business operations as may be required by
governments in the jurisdictions where we operate, or that we determine are in
the best interests of our employees, customers, suppliers and shareholders.
Key Trends and Uncertainties Regarding our Existing Business
The following trends and uncertainties affected our financial performance in
2019 and the first three months of 2020 and will likely impact our results in
the future:
•There are many uncertainties regarding the COVID-19 pandemic, including the
anticipated duration and the extent of worldwide social, political, and economic
disruption it may cause. The magnitude of the impact of the pandemic on our
financial condition, liquidity and results of operations cannot be determined at
this time, and ultimately will be affected by a number of evolving factors
including the length of time that the pandemic continues, its effect on the
demand for the Company's products and services and the supply chain, as well as
the impact of governmental regulations imposed in response to the pandemic. In
addition, the recent decline in oil and gas prices could lead to a potential
sustained downturn in the energy industry.
•We have identified specific product, vertical and geographic opportunities that
we find attractive and continue to pursue, both within and outside the U.S. We
are positioning our businesses to more effectively address these opportunities
through research and development and additional sales and marketing resources.
Unless we successfully penetrate these markets, our organic sales growth will
likely be limited or may decline.
•We have experienced material and other cost inflation. We strive for
productivity improvements, and we implement increases in selling prices to help
mitigate this inflation. We expect the current economic environment, including
the impacts of tariffs, will result in continuing price volatility for many of
our raw materials and purchased components, and we are uncertain as to the
timing and impact of these market changes.
•During 2019 and the first three months of 2020, we continued execution of
certain business restructuring initiatives aimed at reducing our fixed cost
structure and realigning our business. Specifically in the first three months of
2020, the initiatives were executed primarily in response to the decrease in
expected demand attributed to the effect of the COVID-19 pandemic and
significant decline in oil and gas prices.
In addition to the actions and objectives discussed in the Overview and COVID-19
sections above, our operating objectives in 2020 also include the following:
•Achieving differentiated revenue growth through new products and solutions and
vertical market expansion in key developing regions;
•Driving operating excellence through lean enterprise initiatives, with specific
focus on sourcing and supply management, cash flow management and lean
operations;
•Optimizing our technological capabilities to increasingly generate innovative
new and connected products and advance digital transformation; and
•Focusing on developing global talent in light of our global presence.

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