NVent Electric : 2021 Irish Statutory Accounts

2021 Irish Statutory AccountsNVENT ELECTRIC PUBLIC LIMITED

COMPANY

Directors' Report and Consolidated Financial Statements

For the Year Ended December 31, 2021

Company Registration Number: 605257

Table of Contents

Page

Directors' Report1

Directors' Responsibilities Statement 29

Independent Auditor's Report to the Members of nVent Electric plc 30

Consolidated Profit and Loss Account and Statement of Comprehensive Profit (Loss) 36

Consolidated Balance Sheets 37

Consolidated Statements of Cash Flows 38

Consolidated Statements of Changes in Equity 39

Notes to Consolidated Financial Statements 40

Company Balance Sheet 75

Company Statement of Cash Flows 76

Company Statement of Changes in Equity 77

Notes to Company Financial Statements 78

DIRECTORS' REPORT

For the Year Ended December 31, 2021

The directors present their report, audited consolidated financial statements for the year ended December 31, 2021, which are set out on pages 1 to 73, and audited parent company financial statements for the year ended December 31, 2021, which are set out on pages 74 to 81.

nVent Electric plc, is a public limited company, incorporated in the Republic of Ireland under the Companies Act 2014 on May 30, 2017.

The directors have elected to prepare the consolidated financial statements of nVent Electric plc in accordance with Section 279 of the Companies Act 2014, which provides that a true and fair view of the assets and liabilities, financial position and profit or loss may be given by preparing the financial statements in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") to the extent that the use of those principles in the preparation of the financial statements does not contravene any provision of Part 6 of the Companies Act 2014.

The directors have elected to prepare the nVent Electric plc parent company financial statements in accordance with generally accepted accounting practice in Ireland ("Irish GAAP"), comprising Financial Reporting Standard 102 ("FRS 102"), the Financial Reporting Standard applicable in the U.K. and Republic of Ireland, together with the Companies Act 2014.

History and development

On April 30, 2018, Pentair plc ("Pentair") 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 became an independent publicly-traded company and began trading under the symbol "NVT" on the New York Stock Exchange on May 1, 2018.

Although our jurisdiction of organization is Ireland, we manage our affairs so that we are centrally managed and controlled in the United Kingdom (the "U.K.") and have our tax residency in the U.K.

Our roots within Pentair trace back to the acquisition of Federal-Hoffman Corporation in 1988, which included the nVent HOFFMAN enclosures brand. From that starting point, we have grown both organically and via acquisition. Our Enclosures business first applied lean principles within the organization in the 1990s, leveraging its culture of customer service and operational excellence. In 2012, Pentair merged with Tyco International Ltd.'s Flow Control division, which included our Thermal Management business and the nVent RAYCHEM brand, a global leader in heat tracing solutions. In 2015, Pentair acquired ERICO Global Company, a leading global manufacturer of superior engineered electrical and fastening products, which operates as our Electrical & Fastening Solutions business, broadening our product offering and enabling us to provide additional global solutions to our combined customers.

Our registered address is 10 Earlsfort Terrace, Dublin, D02 T380, Ireland. Our executive office is located at The Mille, 1000 Great West Road, 8th Floor (East), London, TW8 9DW, United Kingdom. Our management office in the United States ("U.S.") is located at 1665 Utica Ave, Suite 700, Minneapolis, Minnesota.

Basis of presentation

The accompanying financial statements reflect the consolidated operations of the parent company (nVent Electric plc, or the "Company") and its subsidiaries (nVent Electric plc and all its subsidiaries, hereinafter referred to as "nVent," "we," "us," "our," or the "Group").

We report our results on a calendar year basis.

Principal activities nVent Electric plc 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.

nVent strategy

We are "One nVent", with a unified focus on commercial excellence, digital transformation, scaled and integrated technology, and global presence and capabilities. As we continue scaling our capabilities under our umbrella brand of nVent, we expect to expand our products and solutions and to continue to differentiate our company by creating solutions that solve problems for our customers.

Our Spark management system defines how we operate. The five elements of Spark are People, Growth, Lean, Digital and Velocity. Together, they provide the mindset and operating system to propel the success of our new company. Spark supports the high performance culture we are building at nVent.

• • People are at the core of Spark, positively impacting our business and growing their careers.

• • Growth is the foundation of Spark, driving shareholder, customer and employee value.

• • Lean is the relentless pursuit of eliminating waste and increasing velocity.

• • Digital transforms our products and how we do business, improving both customer and employee experiences.

• • Velocity is increasing speed in all we do for each other and our customers.

Business and products

We operate across three segments: Enclosures, Electrical & Fastening Solutions and Thermal Management. The following is a brief description of each of the Company's reportable segments and business activities.

Enclosures

Our Enclosures business provides innovative solutions to connect and protect critical electronics, communication, control and power equipment. We are a leader in the enclosures sector, and our key brands, nVent HOFFMAN and SCHROFF, have a long history of solving customers' problems by providing high quality solutions.

nVent HOFFMAN provides trusted enclosure solutions for challenging operating environments and is one of the largest brands of enclosures in North America and a leader globally. The offerings connect and protect through reliable solutions that protect, power and cool equipment used by panel builders, original equipment manufacturers and directly by other end-users, including customized products. The nVent HOFFMAN brand is over 75 years old and is recognized for delivering superior design, testing, certification and overall product quality. nVent HOFFMAN's product customization and global footprint, along with reputation, have helped it garner long-standing relationships with many of the world's largest industrial companies.

nVent SCHROFF provides highly-customized and technologically-advanced enclosures. These products connect and protect mission-critical electronics and communications equipment by providing a wide range of innovative standard products and customized solutions. nVent SCHROFF's innovation is demonstrated by its constant flow of new product designs, including a focus on smart products capable of providing connectivity and remote management. The nVent SCHROFF brand is a leader due to its product flexibility and customer-first focus.

Electrical & Fastening Solutions

Our Electrical & Fastening Solutions business provides fastening solutions that connect and protect electrical and mechanical systems and civil structures.

We are a global leader in fastening solutions with spring steel and specialty metal fixings and reinforced steel connections, and our products are primarily marketed under the nVent CADDY brand. Our products reduce total installed cost by ease of installation, provide design flexibility and increase structural integrity in electrical and mechanical fastening applications through inventive products and solutions and customer intimacy. These products are targeted towards commercial and industrial verticals with applications in fire & seismic, data & telecommunications, electrical fastening and heating, ventilation & air conditioning. These products are primarily used by electricians, telecommunications installers and roof top contractors.

We are also a global leader in bonding, grounding, lightning protection and low voltage power distribution products and solutions. These products are primarily marketed under the nVent ERICO brand. We offer a comprehensive range of facility electrical connection and protection solutions to protect against electrical transients to improve safety and reliability of electrical systems. Our products reduce total cost of ownership and provide design flexibility by offering maintenance free and reliable products and global end-user application expertise and intimacy. These products are targeted towards commercial, infrastructure and industrial verticals with applications in telecommunication, power distribution and facility electrical protection. These products and solutions are primarily used by electricians, panel builders, energy contractors and lightning protection installers.