Investor Presentation December 2019
5 Upside Potential: Improving Margins
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MARGIN EXPANSION
STRONG FREE CASH FLOW
CONVERSION
Margin Rate
• Continued expansion into higher margin product categories
Implement Vertiv operating system
• Core / non-core analysis
Lots of free plant capacity
⚫ Functional transformation for SG&A
• Grow sales and hold fixed costs constant
• Continued globalization of product offering
Free Cash Flow1
• Comfortable debt / cash flow at close
• Low capital expenditure needs
Digital Transformation projects largely complete
Opportunities for further improvement, ie:
Potential debt refinancing
Working capital
• Tax
Currently ~500bps Below Average of Peers
Note: See "Non-GAAP Financial Measures" and slide 24 "Financial Summary - Free Cash Flow".
Capital Deployment Upside
VERTIV
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