Q3 2023 Financial Performance - Sales reached $859 million, a 15% increase year-over-year, with organic sales up slightly[19] - Segment income increased by 40% to $202 million, resulting in a Return on Sales (ROS) of 235%, a 420 bps expansion[19] - Adjusted EPS increased by 27% to $084[19] - Free cash flow increased by 8% to $136 million[19] Segment Performance - Enclosures sales increased by 6% to $413 million, with organic sales up 4% and ROS at 217% (+320bps)[10] - Electrical & Fastening sales increased by 45% to $302 million, but organic sales decreased by 4%, with ROS at 323% (+320bps); ECM Industries contributed $98 million to sales[10] - Management Thermal sales decreased by 3% to $144 million, with organic sales also down 3% and ROS at 242% (0bps)[10] Capital Allocation and Debt - Year-to-date, the company returned approximately $103 million in cash to shareholders[4] - Net debt to adjusted EBITDA ratio is at 24X[4] - The company maintains a strong liquidity position with $600 million available on revolver[4, 12] - The company has $113 million of cash on hand at quarter-end[14] 2023 Outlook - The company updated its full-year sales guidance to an increase of 12% to 13%, with organic sales up 3% to 4%[6] - Adjusted EPS guidance was updated to $301 to $303, an increase of 25% to 26%[6] - Acquisitions are expected to add approximately 9% to sales growth[6] - Capital expenditures are projected to be between $70 million and $75 million[6]

PART I FINANCIAL INFORMATION [Financial Statements (unaudited)](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) Presents unaudited condensed consolidated financial statements for Q2 2023, including income, balance sheet, cash flow, and equity, with detailed notes [Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Net sales grew **10.4%** in Q2 and **8.5%** in H1 2023, driven by volume and pricing, leading to increased net income and diluted EPS Consolidated Income Statement Highlights (in millions, except per-share data) | Metric | Three months ended June 30, 2023 | Three months ended June 30, 2022 | Six months ended June 30, 2023 | Six months ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $803.0 | $727.5 | $1,543.6 | $1,422.2 | | **Gross profit** | $331.9 | $267.8 | $635.1 | $515.1 | | **Operating income** | $146.7 | $104.7 | $270.8 | $194.8 | | **Net income** | $112.9 | $79.9 | $206.7 | $147.7 | | **Diluted EPS** | $0.67 | $0.48 | $1.23 | $0.88 | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$5.92 billion** from **$4.90 billion** due to acquisitions, with liabilities rising to **$3.05 billion** from **$2.17 billion** due to increased debt Balance Sheet Summary (in millions) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $138.5 | $297.5 | | Goodwill | $2,543.3 | $2,178.1 | | Intangibles, net | $1,547.5 | $1,066.1 | | **Total assets** | **$5,922.1** | **$4,902.2** | | Long-term debt | $1,938.8 | $1,068.2 | | **Total liabilities** | **$3,046.4** | **$2,170.5** | | **Total equity** | **$2,875.7** | **$2,731.7** | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow more than doubled to **$146.6 million** in H1 2023, with **$1.12 billion** used for acquisitions, funded by **$811.2 million** from financing activities Cash Flow Summary for Six Months Ended June 30 (in millions) | Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $146.6 | $63.9 | | Net cash used for investing activities | $(1,120.8) | $(27.4) | | Net cash provided by (used for) financing activities | $811.2 | $(19.7) | | **Change in cash and cash equivalents** | **$(159.0)** | **$6.3** | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes disclose revenue disaggregation, the **$1.1 billion** ECM Industries acquisition, increased goodwill and intangibles, new debt issuance, and segment performance - On May 18, 2023, the company acquired ECM Industries for approximately **$1.1 billion** in cash, funded primarily through new debt, as part of the Electrical & Fastening Solutions segment[37](index=37&type=chunk) - Goodwill increased by **$361.5 million** due to the ECM Industries acquisition, bringing the total to **$2.54 billion**, with identifiable intangible assets also rising significantly[39](index=39&type=chunk)[46](index=46&type=chunk) - To finance the ECM acquisition, the company issued **$500 million** in 5.650% Senior Notes due 2033 and entered into a new **$300 million** term loan facility, substantially increasing its long-term debt[59](index=59&type=chunk)[65](index=65&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=22&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 2023 financial performance, highlighting **10.4%** net sales growth driven by acquisition and pricing, segment results, liquidity, and increased debt from the ECM acquisition [Consolidated Results of Operations](index=25&type=section&id=Consolidated%20Results%20of%20Operations) Q2 2023 consolidated net sales increased **10.4%** to **$803.0 million**, driven by acquisition and pricing, with gross profit margin expanding and operating income rising **40.1%** Components of Net Sales Change (Q2 2023 vs Q2 2022) | Component | Percentage Change | | :--- | :--- | | Volume | (1.6%) | | Price | 5.5% | | **Organic growth** | **3.9%** | | Acquisition | 6.8% | | Currency | (0.3%) | | **Total** | **10.4%** | - Gross profit margin increased to **41.3%** in Q2 2023 from **36.8%** in Q2 2022, primarily due to price increases and savings from lean initiatives, offsetting inflationary cost pressures[94](index=94&type=chunk)[98](index=98&type=chunk) - Net interest expense increased significantly to **$21.7 million** in Q2 2023 from **$7.5 million** in Q2 2022, mainly due to increased debt from the ECM acquisition and higher interest rates[94](index=94&type=chunk)[99](index=99&type=chunk) [Segment Results of Operations](index=27&type=section&id=Segment%20Results%20of%20Operations) Q2 2023 saw Enclosures sales grow **5.0%** with **6.3** points margin expansion, Electrical & Fastening Solutions sales surge **32.8%** due to acquisition, and Thermal Management sales decline **6.5%** Segment Performance (Q2 2023 vs Q2 2022) | Segment | Net Sales Change | Segment Income Margin | Segment Income Margin Change | | :--- | :--- | :--- | :--- | | Enclosures | +5.0% | 22.5% | +6.3 pts | | Electrical & Fastening Solutions | +32.8% | 32.4% | +3.1 pts | | Thermal Management | -6.5% | 21.0% | +1.6 pts | [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) H1 2023 operating cash flow was **$146.6 million**, with the ECM acquisition financed by **$500 million** senior notes and a **$300 million** term loan, resulting in **$114.5 million** free cash flow - Free cash flow for the first six months of 2023 was **$114.5 million**, compared to **$45.1 million** for the same period in 2022[134](index=134&type=chunk) - The company issued **$500 million** of 5.650% Senior Notes due 2033 and entered a new **$300 million** term loan facility to fund the ECM acquisition[120](index=120&type=chunk)[126](index=126&type=chunk) - As of June 30, 2023, the company had **$127.3 million** available for share repurchases under its 2021 authorization[131](index=131&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=34&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk occurred during Q2 2023 compared to the 2022 Annual Report disclosures - There have been no material changes in market risk during the quarter ended June 30, 2023[139](index=139&type=chunk) [Controls and Procedures](index=34&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective as of June 30, 2023, and is integrating ECM Industries' internal controls - The CEO and CFO concluded that disclosure controls and procedures were effective as of June 30, 2023[140](index=140&type=chunk) - The company is currently integrating the internal controls and procedures of the recently acquired ECM Industries[141](index=141&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=35&type=section&id=ITEM%201.%20Legal%20Proceedings) No material developments in legal proceedings have occurred since the 2022 Annual Report disclosures - There have been no material developments with respect to legal proceedings previously disclosed in the 2022 Annual Report[143](index=143&type=chunk) [Risk Factors](index=35&type=section&id=ITEM%201A.%20Risk%20Factors) New risk factors include integration difficulties, failure to realize acquisition benefits, and increased financial risk from higher debt and leverage - The company may not realize the anticipated benefits of the ECM Industries acquisition, and integration could present unexpected difficulties[145](index=145&type=chunk) - The company's total debt increased to **$2.0 billion** as of June 30, 2023, due to financing the ECM acquisition, which increases financial risk and vulnerability to adverse economic conditions[147](index=147&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=36&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details share repurchase activities for Q2 2023, with **$127.3 million** remaining available under the 2021 authorization - As of June 30, 2023, the company had **$127.3 million** available for share repurchases under the 2021 Authorization, which expires in July 2024[153](index=153&type=chunk) [Other Information](index=37&type=section&id=ITEM%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading arrangements during Q2 2023 - During Q2 2023, no directors or executive officers adopted or terminated any Rule 10b5-1 trading arrangements[154](index=154&type=chunk) [Exhibits](index=37&type=section&id=ITEM%206.%20Exhibits) Provides an index of exhibits for the Quarterly Report on Form 10-Q, including acquisition agreements and CEO/CFO certifications

nVent Electric PLC (NYSE:NVT) Q2 2023 Earnings Conference Call July 28, 2023 9:00 AM ET Company Participants Tony Riter - Vice President of Investor Relations Beth Wozniak - Chief Executive Officer & Director Sara Zawoyski - Executive Vice President & Chief Financial Officer Conference Call Participants Julian Mitchell - Barclays Bank Deane Dray - RBC Capital Markets Jeff Hammond - KeyBanc Capital Markets Joseph Ritchie - Goldman Sachs Group Jeffrey Sprague - Vertical Research Partners Nigel Coe - Wolfe Res ...

Reported to Adjusted 2021 Reconciliation nVent Electric plc Reconciliation of GAAP to non-GAAP financial measures for the year ended December 31, 2021 excluding the effect of adjustments (Unaudited) | --- | --- | --- | --- | --- | --- | --- | --- | --- | |---------------------------------------------------------------------------|---------------|-------|----------------|---------------|-------|----------------|-------|-----------| | In millions, except per-share data | First Quarter | | Second Quarter | Thi ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=3&type=section&id=ITEM%201.%20Financial%20Statements%20(unaudited)) Q1 2023 unaudited financials report strong net income growth, stable assets, improved cash flow, and a major acquisition [Condensed Consolidated Statements of Income and Comprehensive Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) Q1 2023 vs Q1 2022 Income Statement Highlights | Metric | Q1 2023 (in millions) | Q1 2022 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net Sales | $740.6 | $694.7 | +6.6% | | Gross Profit | $303.2 | $247.3 | +22.6% | | Operating Income | $124.1 | $90.1 | +37.7% | | Net Income | $93.8 | $67.8 | +38.3% | | Diluted EPS | $0.56 | $0.40 | +40.0% | [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Balance Sheet Highlights (Mar 31, 2023 vs Dec 31, 2022) | Account | Mar 31, 2023 (in millions) | Dec 31, 2022 (in millions) | | :--- | :--- | :--- | | Cash and cash equivalents | $303.1 | $297.5 | | Total current assets | $1,251.8 | $1,229.2 | | Goodwill | $2,180.5 | $2,178.1 | | Total assets | $4,916.4 | $4,902.2 | | Total current liabilities | $601.3 | $649.5 | | Long-term debt | $1,064.6 | $1,068.2 | | Total equity | $2,789.9 | $2,731.7 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2023 vs Q1 2022 Cash Flow Summary | Activity | Q1 2023 (in millions) | Q1 2022 (in millions) | | :--- | :--- | :--- | | Net cash from operating activities | $69.4 | $6.5 | | Net cash used for investing activities | ($16.9) | ($9.2) | | Net cash (used for) provided by financing activities | ($50.8) | $5.9 | | Change in cash and cash equivalents | $5.6 | $1.6 | [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) - On April 1, 2023, the company entered into a definitive agreement to acquire ECM Industries, LLC for a purchase price of **$1.1 billion**, with the acquisition expected to close in the second quarter of 2023[31](index=31&type=chunk) - To finance the ECM Industries acquisition, the company arranged a **$300.0 million** senior unsecured term loan facility and a public offering of **$500.0 million** in 5.650% Senior Notes due 2033[33](index=33&type=chunk)[34](index=34&type=chunk) Q1 2023 Revenue by Segment | Segment | Q1 2023 Net Sales (in millions) | Q1 2022 Net Sales (in millions) | | :--- | :--- | :--- | | Enclosures | $391.0 | $359.4 | | Electrical & Fastening Solutions | $205.7 | $187.6 | | Thermal Management | $143.9 | $147.7 | | **Total** | **$740.6** | **$694.7** | Q1 2023 Segment Income | Segment | Q1 2023 Segment Income (in millions) | Q1 2022 Segment Income (in millions) | | :--- | :--- | :--- | | Enclosures | $82.5 | $50.3 | | Electrical & Fastening Solutions | $61.3 | $47.1 | | Thermal Management | $30.9 | $32.4 | | **Total** | **$148.0** | **$110.2** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reports net sales growth, expanded gross margin, strong segment performance, a key acquisition, and robust liquidity [Overview and Key Trends](index=19&type=section&id=Overview%20and%20Key%20Trends) - The company operates across three segments: Enclosures (**53%** of Q1 2023 revenue), Electrical & Fastening Solutions (**28%**), and Thermal Management (**19%**)[79](index=79&type=chunk) - A definitive agreement was signed on April 1, 2023, to acquire ECM Industries for **$1.1 billion**, which will be integrated into the Electrical & Fastening Solutions segment upon closing[81](index=81&type=chunk) - Key trends include moderating supply chain challenges, continued cost inflation, economic uncertainty, and strategic objectives focused on growth, the ECM acquisition, digital transformation, and supply chain resiliency[82](index=82&type=chunk) [Consolidated Results of Operations](index=22&type=section&id=Consolidated%20Results%20of%20Operations) Components of Net Sales Change (Q1 2023 vs Q1 2022) | Component | Percentage Change | | :--- | :--- | | Volume | +0.3% | | Price | +8.1% | | **Organic Growth** | **+8.4%** | | Currency | -1.8% | | **Total** | **+6.6%** | - Gross profit margin increased by **5.3 percentage points** to **40.9%**, primarily due to higher selling prices and productivity savings offsetting inflationary labor costs[84](index=84&type=chunk)[87](index=87&type=chunk) - SG&A expense as a percentage of net sales increased by **1.5 percentage points** to **21.9%**, driven by inflation, higher restructuring and acquisition costs (**$6.3 million** in Q1 2023 vs **$2.3 million** in Q1 2022), and growth investments[88](index=88&type=chunk)[92](index=92&type=chunk) [Segment Results of Operations](index=23&type=section&id=Segment%20Results%20of%20Operations) - **Enclosures:** Net sales grew **8.8%** (**10.7%** organic), driven by strong price realization (**+8.5%**) and volume growth (**+2.2%**), expanding segment income margin by **7.1 percentage points** to **21.1%**[92](index=92&type=chunk)[93](index=93&type=chunk)[95](index=95&type=chunk) - **Electrical & Fastening Solutions:** Net sales increased **9.6%** (**10.9%** organic), primarily from strong pricing (**+10.8%**), with segment income margin growing by **4.7 percentage points** to **29.8%** due to pricing and favorable product mix[96](index=96&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk) - **Thermal Management:** Net sales decreased **2.6%** (**-0.2%** organic) due to a **4.0%** volume decline offsetting **3.8%** price increases, primarily in commercial & residential business, leading to a slight **0.4 percentage point** segment income margin contraction to **21.5%** from inflation, lower volume, and unfavorable mix[101](index=101&type=chunk)[103](index=103&type=chunk)[104](index=104&type=chunk) [Liquidity and Capital Resources](index=27&type=section&id=Liquidity%20and%20Capital%20Resources) - The company ended Q1 2023 with **$303.1 million** in cash and cash equivalents and **$600.0 million** available under its Revolving Credit Facility[107](index=107&type=chunk)[119](index=119&type=chunk) Free Cash Flow Reconciliation (Q1 2023 vs Q1 2022) | Metric (in millions) | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Net cash from operating activities | $69.4 | $6.5 | | Capital expenditures | ($17.1) | ($11.1) | | Proceeds from sale of property | $0.2 | $1.9 | | **Free cash flow** | **$52.5** | **($2.7)** | - During Q1 2023, the company repurchased **0.3 million** shares for **$13.2 million** and paid dividends of **$29.3 million**[126](index=126&type=chunk)[127](index=127&type=chunk) - As of March 31, 2023, **$127.3 million** remained available for share repurchases under the 2021 Authorization, expiring in July 2024[126](index=126&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company reports no material changes in its market risk during the quarter ended March 31, 2023 - There have been no material changes in market risk during the quarter ended March 31, 2023[133](index=133&type=chunk) [Item 4. Controls and Procedures](index=30&type=section&id=ITEM%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of March 31, 2023[134](index=134&type=chunk) - No changes occurred during the quarter that materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[135](index=135&type=chunk) PART II OTHER INFORMATION [Item 1. Legal Proceedings](index=31&type=section&id=ITEM%201.%20Legal%20Proceedings) There have been no material developments in legal proceedings since the disclosures in the 2022 Annual Report on Form 10-K - No material developments have occurred with respect to legal proceedings previously disclosed in the 2022 Annual Report on Form 10-K[138](index=138&type=chunk) [Item 1A. Risk Factors](index=31&type=section&id=ITEM%201A.%20Risk%20Factors) The company has identified new risk factors related to the pending acquisition of ECM Industries, including integration challenges and increased financial leverage - New risk factors have been introduced related to the acquisition of ECM Industries[139](index=139&type=chunk) - Key risks include challenges in integrating ECM's operations, which could delay or prevent the realization of expected synergies and cost savings[140](index=140&type=chunk) - The company's indebtedness is expected to increase materially by approximately **$800.0 million** to finance the acquisition, potentially harming its financial condition and reducing flexibility[142](index=142&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=32&type=section&id=ITEM%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q1 2023, the company repurchased **512,422** shares, with **$127.3 million** remaining for future repurchases Share Repurchases in Q1 2023 | Period | Total Shares Purchased | Average Price Paid | Shares Purchased as Part of Plan | | :--- | :--- | :--- | :--- | | Jan 1 - Jan 28, 2023 | 349,133 | $38.60 | 342,830 | | Jan 29 - Feb 25, 2023 | 4,784 | $40.69 | — | | Feb 26 - Mar 31, 2023 | 158,505 | $45.83 | — | | **Total** | **512,422** | | **342,830** | - As of March 31, 2023, the company had **$127.3 million** available for share repurchases under the 2021 Authorization, which expires on July 22, 2024[148](index=148&type=chunk) [Item 6. Exhibits](index=33&type=section&id=ITEM%206.%20Exhibits) This section lists the exhibits filed as part of the Quarterly Report on Form 10-Q, including key agreements and officer certifications - Key exhibits filed with this report include the Loan Agreement dated April 26, 2023, and the Merger Agreement for the ECM Industries acquisition dated April 1, 2023[151](index=151&type=chunk)

nVent Electric PLC (NYSE:NVT) Q1 2023 Earnings Conference Call April 28, 2023 9:00 AM ET Company Participants Tony Riter - VP, IR Beth Wozniak - CEO & Director Sara Zawoyski - EVP & CFO Conference Call Participants Julian Mitchell - Barclays Bank Deane Dray - RBC Capital Markets Joseph Ritchie - Goldman Sachs Group Jeffrey Sprague - Vertical Research Partners Jeffrey Hammond - KeyBanc Capital Markets Scott Graham - Loop Capital Markets Nigel Coe - Wolfe Research Operator Good morning, everyone, and welcome ...

Up 4% to 6% organic ▪ Corporate costs ~$95M nVent Strategy Adjusted EBITDA Margin* Reported to Adjusted 2023 Reconciliation No change ▪ Secular tailwinds continue in electrification Q2 2023 nVent Outlook* 12 Q1 '23 Earnings Presentation Extraordinary and non-recurring costs primarily consist of integration and consolidation costs related to historical ECM acquisitions, financial sponsor management fees, and non-recurring professional fees and transaction costs Q1 '23 Earnings Presentation nVent First Quarte ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 001-38265 nVent Electric plc (Exact name of Registrant as specified in its charter) Ireland 98-1391970 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer ...

Barclays 2023 Global 1 Industrial Conference Beth Wozniak, Chief Executive Officer 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 word ...

Financial Data and Key Metrics Changes - Full year sales grew 18% with adjusted EPS up 22% [5][12] - Fourth quarter sales were $742 million, up 11% year-over-year, or 15% organically [27][40] - Segment income for Q4 was $144 million, up 31% year-over-year, with a return on sales of 19.4%, an increase of 290 basis points [28][36] - Free cash flow for Q4 was $180 million, up 77% year-over-year [12][29] Business Line Data and Key Metrics Changes - Enclosures sales increased 17% organically, with segment income up 67% and return on sales at 19.2% [31][32] - Electrical and fastening sales grew 16% organically, with segment income up 18% and return on sales at 27.5% [33][34] - Thermal management sales grew 9% organically, with segment income up 1% and return on sales at 25.7% [35][36] Market Data and Key Metrics Changes - North America saw strong double-digit growth, while Europe grew in all segments at high single digits [14][31] - Developing regions experienced a decline primarily due to COVID-related impacts in China [14] - Orders in Q4 were flat year-over-year, following a 37% growth in the previous year [15] Company Strategy and Development Direction - The company focuses on high growth verticals, new products, global expansion, and acquisitions [11][17] - Infrastructure is now approaching 25% of sales, with significant growth in data solutions and power utilities [17][18] - The company aims to continue investing in electrification, sustainability, and digitalization trends [21][24] Management's Comments on Operating Environment and Future Outlook - Management expects continued strong growth in industrials and infrastructure due to investments in automation and electrification [21][22] - Supply chain challenges are anticipated to gradually improve, with an inflationary environment expected to persist [24] - The company is confident in its ability to manage price-cost dynamics effectively [24][41] Other Important Information - The company launched 59 new products in 2022, contributing approximately three points to sales growth [16][18] - The balance sheet remains strong with $298 million in cash and $600 million available on the revolver [38][39] - The company plans to return $183 million to shareholders, including dividends and share repurchases [39] Q&A Session Summary Question: Can you elaborate on the pricing strategy for 2023? - Management indicated that price plus productivity is expected to offset inflation, with a gradual improvement in productivity throughout the year [58][59] Question: What is the health of the distribution channel? - Management noted that while there was some seasonal destocking, strong demand and sell-through from distribution partners remain [60][61] Question: How do you view the sustainability of enclosure margins? - Management expects a return to a more normal margin profile for enclosures, with strong year-over-year margin expansion anticipated [68][69] Question: What is the outlook for data center solutions? - The company sees strong demand for liquid cooling solutions and power distribution units, driven by technology shifts in data centers [99][102] Question: Can you provide insights on R&D spending? - R&D spending has increased significantly, focusing on collaborative projects that meet market needs and reduce cycle times [126][128]