Vertiv Holdings Co (VRT) 2019 Q4 法說會逐字稿

Good morning, everyone.

大家，早安。

My name is Jamie, and I will be your conference operator today.

我叫傑米，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to Vertiv's Fourth Quarter and Full Year 2019 Earnings Conference call.

此時此刻，我歡迎大家參加 Vertiv 2019 年第四季和全年財報電話會議。

(Operator Instructions) Please also note today's event is being recorded.

（操作員說明）也請注意今天的活動正在錄製中。

At this time, I'd like to turn the conference call over to your host for today's conference call, Lynne Maxeiner, Vice President of Investor Relations.

現在，我想將電話會議轉給今天電話會議的主持人，投資者關係副總裁 Lynne Maxeiner。

Great.

偉大的。

Thank you, Jamie.

謝謝你，傑米。

Good morning and welcome to Vertiv's fourth quarter and full year 2019 earnings conference call.

早上好，歡迎參加 Vertiv 2019 年第四季和全年財報電話會議。

Joining me today are Vertiv's Executive Chairman, David Cote; Chief Executive Officer, Rob Johnson; Chief Financial Officer; David Fallon, and Chief Strategy and Development Officer, Gary Niederpruem.

今天與我一起出席的還有 Vertiv 執行主席 David Cote；執行長羅布·約翰遜；財務長; David Fallon 與首席策略與發展長 Gary Niederpruem。

Before we begin, I'd like to point out that during the course of this call, we will make forward-looking statements regarding future events, including the future financial and operating performance of Vertiv.

在開始之前，我想指出，在本次電話會議期間，我們將對未來事件做出前瞻性陳述，包括 Vertiv 未來的財務和營運績效。

These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

這些前瞻性陳述存在重大風險和不確定性，可能導致實際結果與前瞻性陳述中的結果有重大差異。

We refer you to the cautionary language included in today's earnings release, and you can learn more about these risks in our registration statement, our proxy statement and other filings with the SEC.

我們建議您參考今天的收益發布中包含的警示性語言，您可以在我們的註冊聲明、代理聲明和向 SEC 提交的其他文件中了解有關這些風險的更多資訊。

Any forward-looking statements that we make today are based on assumptions that we believe to be reasonable as of this date.

我們今天所做的任何前瞻性陳述都是基於我們認為截至目前為止合理的假設。

We undertake no obligation to update these statements as a result of new information or future events.

我們不承擔因新資訊或未來事件而更新這些聲明的義務。

During this call, we will also present both GAAP and non-GAAP financial measures.

在本次電話會議中，我們也將介紹 GAAP 和非 GAAP 財務指標。

Our GAAP results and GAAP to non-GAAP reconciliations can be found in our earnings press release and in the investor slide deck found on our website at investors.vertiv.com.

我們的 GAAP 業績以及 GAAP 與非 GAAP 調整表可在我們的收益新聞稿以及我們網站 Investors.vertiv.com 上的投資者幻燈片中找到。

With that, I'll turn the call over to Executive Chairman, David Cote.

接下來，我會將電話轉給執行主席 David Cote。

Thank you, Lynne.

謝謝你，琳恩。

And it's great to be on the inaugural Vertiv investor call to announce our Q4 and full fiscal year 2019 results.

很高興參加首次 Vertiv 投資者電話會議，宣布我們的第四季和 2019 財年全年業績。

So before I turn it over to Rob Johnson, our CEO, I want to begin with a few remarks about my level of excitement regarding the transaction.

因此，在將其交給我們的執行長 Rob Johnson 之前，我想先談談我對交易的興奮程度。

As many of you know, I was fortunate to be able to lead Honeywell for about 16 years.

正如你們許多人所知，我很幸運能夠領導霍尼韋爾大約 16 年。

Those who invested with us made a great return, and that performance was marked by consistent annual improvements in the people, processes and portfolio of the businesses that comprise Honeywell.

那些與我們一起投資的人獲得了豐厚的回報，而這一業績的標誌是霍尼韋爾旗下業務的人員、流程和投資組合每年都在持續改進。

And we were able to do this by focusing our efforts on businesses with great positions in good industries, differentiating with technology.

我們之所以能夠做到這一點，是因為我們將精力集中在優秀產業中具有重要地位的企業，並透過科技實現差異化。

We implemented HOS or the Honeywell Operating System.

我們實施了居屋（HOS）或霍尼韋爾作業系統。

We drove functional transformation.

我們推動了職能轉型。

We invested in new products and services.

我們投資新產品和服務。

We built our software capability.

我們建立了我們的軟體能力。

We had a rigorous process for capital deployment.

我們有嚴格的資本部署流程。

We steadily planted seeds for the long term.

我們穩步播下長期的種子。

And importantly, we consistently delivered on our commitments.

重要的是，我們始終如一地兌現了我們的承諾。

Now on Slide 3 of the earnings deck, you can see that many of the attributes that drew me to Vertiv initially, this truly checks all the boxes.

現在，在收益表的幻燈片 3 上，您可以看到最初吸引我選擇 Vertiv 的許多屬性，這確實滿足了所有條件。

It is a great position in a good industry, able to differentiate with technology and has great potential upside for growth and margin expansion.

它在一個良好的行業中處於有利地位，能夠透過技術實現差異化，並且具有巨大的成長和利潤擴張潛力。

So as you could probably tell, I'm pretty excited by this opportunity.

正如您可能知道的那樣，我對這個機會感到非常興奮。

And as I've gotten even closer to Rob and the team and the overall business, I'm even more excited today than I was even a few months ago.

隨著我與 Rob 以及團隊和整體業務的關係更加密切，我今天比幾個月前更加興奮。

I've been very impressed with Rob's knowledge of the industry, his customer relationships, and we've gone on some customer visits together and have seen it first-hand, and his drive to make Vertiv the first choice for our customers.

Rob 對業界的了解、他的客戶關係給我留下了深刻的印象，我們一起拜訪了一些客戶並親眼目睹了這一點，以及他讓 Vertiv 成為客戶首選的動力。

So now I'll turn the call over to Rob, who can take you through the business in some more detail.

現在我將把電話轉給 Rob，他可以帶您更詳細地了解該業務。

Rob?

搶？

Thanks, Dave, and thanks for the great intro.

謝謝戴夫，也謝謝你的精彩介紹。

And before I even begin, I just want to say what a pleasure it's been working with Dave these past few months.

在開始之前，我只想說過去幾個月與戴夫合作是多麼愉快。

He's been a great coach and mentor for me and he's provided invaluable guidance to the team as well.

他對我來說是一位出色的教練和導師，他也為球隊提供了寶貴的指導。

It's really just been a great start to our partnership.

這確實是我們合作關係的良好開端。

I would like to thank all the investors on the phone today, and thank you for your support over the last several months.

我要感謝今天電話裡的所有投資者，感謝你們過去幾個月的支持。

Additionally, I want to thank all of Vertiv employees who have helped us get through our transformation over the last 3.5 years.

此外，我還要感謝所有在過去 3.5 年裡幫助我們完成轉型的 Vertiv 員工。

While our journey is nowhere near complete, I'm very proud of the transformation effort and our ability to deliver a very solid 2019 results.

雖然我們的旅程還遠未完成，但我對轉型努力以及我們在 2019 年交付非常紮實的業績的能力感到非常自豪。

Moving to Slide 4. As you know, we closed the deal with Goldman Sachs Acquisition Holdings on February 7 and followed up with a great ceremonial day on Friday, February 28, by ringing the bell on the New York Stock Exchange.

轉向幻燈片 4。如您所知，我們於 2 月 7 日完成了與高盛收購控股公司的交易，並在 2 月 28 日星期五敲響了紐約證券交易所的鐘聲，舉行了盛大的儀式。

Those events were fantastic and continue to help the exposure of our Vertiv brand to the marketplace.

這些活動非常棒，並繼續幫助我們的 Vertiv 品牌在市場上曝光。

Now on the financial side, we exceeded expectations for organic sales by growing 5.6%, and for adjusted EBITDA by finishing at $542 million for the full year of 2019.

現在在財務方面，2019 年全年有機銷售額成長 5.6%，超出預期，調整後 EBITDA 達到 5.42 億美元。

Additionally, we had strong orders quarter in Q4 by booking over $1.170 billion.

此外，我們第四季的訂單強勁，訂單超過 11.7 億美元。

And between January and February of 2020, our orders are up 8% for the same time period last year.

2020 年 1 月至 2 月期間，我們的訂單量比去年同期成長了 8%。

While the estimate that the coronavirus could negatively impact the first net sales quarter by $70 million to $90 million and first quarter adjusted EBITDA by $28 million to $36 million, based on what we know today, we are confirming our previously communicated full year guidance of 4.5% to 5% organic sales growth and adjusted EBITDA of $595 million.

雖然估計冠狀病毒可能對第一季淨銷售額造成7,000 萬至9,000 萬美元的負面影響，並對第一季度調整後EBITDA 造成2,800 萬至3,600 萬美元的負面影響，但根據我們今天所知，我們確認先前傳達的全年指引為4.5有機銷售額成長 % 至 5%，調整後 EBITDA 為 5.95 億美元。

Due to our expectations to partial recovery of these first quarter sales and earnings, our conservative planning process and additional cost actions put in place.

由於我們預計第一季銷售和收益將部分恢復，因此我們採取了保守的規劃流程和額外的成本行動。

While the impact of the virus is dynamic, based on what we know today, we do believe that our first quarter shortfall can be made up by the end of the year.

雖然病毒的影響是動態的，但根據我們今天所知，我們確實相信第一季的缺口可以在年底前得到彌補。

Finally, I'm happy to report we completed our refinancing efforts all recently on our term loan, which will provide us 100 basis points reduction on the current term loan rate.

最後，我很高興地向大家報告，我們最近完成了定期貸款的再融資工作，這將使我們目前的定期貸款利率降低 100 個基點。

So between our debt paydown with the SPAC proceeds and the refinancing, we have significantly improved our balance sheet, and on a pro forma run rate basis expect to generate over $285 million in free cash flow.

因此，在利用 SPAC 收益償還債務和再融資之間，我們的資產負債表得到了顯著改善，根據預估運行率，預計將產生超過 2.85 億美元的自由現金流。

Turning to Slide 5. Some of these events I mentioned on the prior slide, but I think it's important to highlight the major milestones we've guided the business through over the past few months.

轉向投影片 5。我在上一張投影片中提到了其中一些事件，但我認為強調我們在過去幾個月中引導業務完成的主要里程碑非常重要。

Since early December, when we first announced the transaction, the entire team has been hard at work to close the deal, restructure our balance sheet and increase our visibility in the financial markets.

自 12 月初我們首次宣布這項交易以來，整個團隊一直在努力完成交易、重組我們的資產負債表並提高我們在金融市場的知名度。

VRT was officially listed February 7, and Dave officially became our Executive Chairman.

VRT於2月7日正式上市，Dave正式成為我們的執行主席。

With the proceeds from the SPAC transaction, we were able to significantly reduce our debt levels as an average level -- leverage decreased from 6.5x to 3.7x on a pro forma basis.

借助 SPAC 交易的收益，我們能夠大幅降低平均債務水準——按預期槓桿率從 6.5 倍降至 3.7 倍。

With that leverage reduction, we were able to improve our credit rating with both agencies.

透過降低槓桿率，我們能夠提高兩家機構的信用評級。

With Moody's, we increased 3 levels.

透過穆迪，我們提升了 3 個等級。

And with S&P, we bettered our position by 1 level.

透過標普，我們的排名提高了 1 個等級。

As a result of all these moves, we will lower our annual interest payment by almost $160 million, which is great for us.

由於所有這些舉措，我們的年度利息支出將減少近 1.6 億美元，這對我們來說是件好事。

Lastly, hopefully, many of you saw, Dave, David, Gary, myself and the rest of the management team ring the bell on February 28 on the New York Stock Exchange.

最後，希望你們很多人都看到了，Dave、David、Gary、我本人以及管理團隊的其他成員於 2 月 28 日在紐約證券交易所敲響了鐘聲。

It was a great morning for our company, and those types of efforts, coupled with all the analyst interactions we've had, will lead to greater visibility for this great company of ours.

對於我們公司來說，這是一個美好的早晨，這些類型的努力，加上我們所做的所有分析師互動，將為我們這家偉大的公司帶來更大的知名度。

Now I'll turn it over to David for a few slides -- to discuss a few slides on our segment results.

現在我將把它交給大衛幾張幻燈片——討論我們的細分結果的幾張幻燈片。

Thanks, Rob.

謝謝，羅布。

Turning to Slide 6. This page summarizes our full year financial results for 2019 versus prior year.

轉向投影片 6。本頁總結了我們 2019 年與前一年相比的全年財務表現。

Starting at the left and moving right, net sales increased 3% and organic sales adjusted for a $98 million foreign exchange headwind, increased almost 6% from 2018.

從左開始向右移動，淨銷售額成長了 3%，有機銷售額經 9,800 萬美元的外匯逆風調整後，較 2018 年成長了近 6%。

Adjusted EBITDA increased $40 million or 8%, primarily on the strength of higher sales and a 50 basis point improvement in adjusted EBITDA margin to 12.2% as lower adjusted SG&A as a percentage of sales was partially offset by a reduction in adjusted gross profit percentage.

調整後EBITDA 增加了4000 萬美元，即8%，主要是由於銷售額增加，以及調整後EBITDA 利潤率提高50 個基點至12.2%，因為調整後SG&A 佔銷售額的百分比較低，部分被調整後毛利率的下降所抵銷。

Finally, on this slide, free cash flow improved over $300 million from 2018, primarily driven by improved working capital and lower investments in restructuring initiatives and the digital project as detailed on Page 19 of this presentation.

最後，在這張投影片中，自由現金流較 2018 年增加了 3 億多美元，這主要是由於營運資本的改善以及重組計畫和數位專案的投資減少，如本簡報第 19 頁所述。

Next, moving to Slide 7. This page summarizes our 2019 financial performance for our regional segments.

接下來，轉到投影片 7。本頁總結了我們區域部門 2019 年的財務表現。

The solid top line organic growth in 2019 in each region led by 8% in EMEA was strongly supported by continued penetration of hyperscale and colocation markets.

2019 年，各地區的營收實現了穩健的有機成長，其中歐洲、中東和非洲 (EMEA) 成長了 8%，這得益於超大規模和託管市場的持續滲透。

Year-over-year adjusted EBITDA also increased in all 3 regions: 6% in Americas, 7% in APAC and an impressive 14% in EMEA.

所有 3 個地區的年比調整後 EBITDA 均有所成長：美洲成長 6%，亞太地區成長 7%，歐洲、中東和非洲地區成長 14%，令人印象深刻。

And with adjusted EBITDA growing faster than net sales in each region, adjusted EBITDA margin also increased across all 3 segments.

由於調整後 EBITDA 的成長速度快於每個地區的淨銷售額，所有 3 個細分市場的調整後 EBITDA 利潤率也有所增加。

Americas is our most profitable region, as you can see at 23.5% adjusted EBITDA and EMEA is lowest at 13.4%.

美洲是我們利潤最高的地區，調整後的 EBITDA 為 23.5%，歐洲、中東和非洲地區最低，為 13.4%。

However, we believe there is still significant opportunity for margin expansion in EMEA as their fixed cost as a percentage of sales is much higher than the other 2 regions.

然而，我們認為歐洲、中東和非洲地區的利潤率仍有很大的擴張機會，因為其固定成本佔銷售額的百分比遠高於其他兩個地區。

We have addressed some of these higher fixed costs over the last 3 years through restructuring efforts, but we see significantly more opportunity from the benefits of implementing the Vertiv operating system in EMEA as well as other regions.

過去 3 年，我們透過重組努力解決了部分較高的固定成本問題，但我們看到，在 EMEA 及其他地區實施 Vertiv 作業系統帶來的好處將帶來更多機會。

Next, turning to Slide 8. This page summarizes our fourth quarter financial performance.

接下來，轉向投影片 8。本頁總結了我們第四季的財務表現。

Once again, starting on the left and moving right, our fourth quarter net sales equaled the record high in last year's fourth quarter and grew 1% on an organic basis despite the challenging comp.

再一次，從左邊開始向右，我們第四季的淨銷售額追平了去年第四季的歷史新高，儘管競爭充滿挑戰，但有機成長了 1%。

Fourth quarter adjusted EBITDA declined $8 million, and adjusted EBITDA margin declined 70 basis points as a 130 basis point improvement in gross margin percentage was more than offset by a 200 basis point increase in adjusted SG&A as a percentage of sales.

第四季調整後的EBITDA 下降了800 萬美元，調整後的EBITDA 利潤率下降了70 個基點，毛利率百分比提高了130 個基點，但調整後的SG&A 佔銷售額的百分比增加了200 個基點，這抵消了這一點。

Lower SG&A in last year's fourth quarter was partially driven by lower incentive compensation expense as we failed to meet internal targets last year and several favorable discrete SG&A adjustment that did not repeat in this year's fourth quarter.

去年第四季的銷售及管理費用較低，部分原因是激勵補償費用較低，因為我們去年未能實現內部目標，而且一些有利的離散銷售及管理費用調整在今年第四季沒有重複。

Free cash flow increased $74 million, primarily driven by a $50 million reduction in working capital and a $17 million reduction in cash interest payments due to timing.

自由現金流增加 7,400 萬美元，主要是由於營運資金減少 5,000 萬美元以及因時間安排而減少的現金利息支付 1,700 萬美元。

Next, on Slide 9. This page summarizes our fourth quarter results versus 2018 for our regional segments.

接下來，在投影片 9 上。本頁總結了我們各區域部門第四季的業績與 2018 年相比。

The overall 1% increase in consolidated organic sales was driven by a 9% increase in organic sales in APAC offset by a 7% decline in EMEA.

亞太地區有機銷售額成長 9%，抵銷了歐洲、中東和非洲地區有機銷售額 7% 的下降，推動了綜合有機銷售額整體成長 1%。

Americas was relatively flat.

美洲相對平坦。

Solid growth in APAC was due to strong shipments in the telecom space.

亞太地區的穩健成長得益於電信領域的強勁出貨量。

And lower organic sales in EMEA was in part due to record quarterly sales in last year's fourth quarter, supported by several large projects.

歐洲、中東和非洲地區有機銷售額下降的部分原因是去年第四季在幾個大型專案的支持下創紀錄的季度銷售額。

Adjusted EBITDA margin in Americas expanded 350 basis points despite flat sales as a result of productivity gains, pricing and fixed cost control.

儘管由於生產力提高、定價和固定成本控制導致銷售額持平，但美洲地區調整後 EBITDA 利潤率仍擴大了 350 個基點。

The 470 basis point decline in adjusted EBITDA margin in EMEA was primarily driven by lower sales and the associated fixed cost leverage and in addition to the negative impact of a larger low-margin project.

歐洲、中東和非洲地區調整後 EBITDA 利潤率下降 470 個基點，主要是由於銷售額下降和相關的固定成本槓桿以及較大的低利潤項目的負面影響。

Moving to Slide 10.

轉到投影片 10。

We provide the components of our full year $302 million increase in free cash flow from 2018.

我們提供了自 2018 年以來全年自由現金流增加 3.02 億美元的組成部分。

Although each major category of cash flow generation improved from last year, the 2 primary sources of higher cash flow were: $135 million reduction in investment in restructuring initiatives and the digital project, and we detail that on Page 19 of this presentation; and also a $74 million improvement in cash flow from working capital as we focus heavily last year on both inventory optimization and the collection of past due accounts receivable.

儘管現金流量產生的每個主要類別均較去年有所改善，但現金流量增加的兩個主要來源是： 重組計劃和數位項目的投資減少了1.35 億美元，我們在本簡報第19 頁詳細介紹了這一點；由於我們去年專注於庫存優化和逾期應收帳款的催收，營運資金現金流也改善了 7,400 萬美元。

Despite the significant year-over-year improvement, free cash flow was still slightly below breakeven at a negative $8 million.

儘管年比顯著改善，但自由現金流仍略低於損益兩平點，為負 800 萬美元。

However, as we will discuss in a little bit more detail in a short bit, we expect 2020 free cash flow to be both improved and significantly positive.

然而，正如我們稍後將更詳細地討論的那樣，我們預計 2020 年自由現金流將有所改善並且顯著為正。

So with that said, I turn it back over to Rob.

話雖如此，我把它轉回給羅布。

Thanks, David.

謝謝，大衛。

As we look at Slide 11, these are some of the areas that Dave Cote, myself and the rest of the management team are focused on.

當我們查看投影片 11 時，這些是 Dave Cote、我本人以及管理團隊其他成員關注的一些領域。

As I mentioned earlier, Dave has brought another level of coaching and guidance for the entire leadership team, and he's given us great advice and counsel on many business topics over the past few months.

正如我之前提到的，戴夫為整個領導團隊帶來了另一個層次的指導和指導，在過去的幾個月裡，他就許多業務主題給了我們很好的建議和建議。

I won't walk through each one of the bullets, but I would like to comment on a few specific ones.

我不會詳細介紹每一項，但我想對一些具體的項目進行評論。

First, we are really focused on increasing our R&D efforts to allow us to differentiate with technology.

首先，我們真正專注於增加研發力度，以使我們能夠透過技術實現差異化。

We have a great position in almost all of our product and service areas, but we know there's plenty of opportunity to do more.

我們在幾乎所有產品和服務領域都佔據著重要地位，但我們知道還有很多機會可以做得更多。

We've already begun with this effort in several areas, where projects have been scoped, resourcing, people are being hired and plans are being executed.

我們已經在幾個領域開始了這項工作，其中專案範圍已經確定，資源配置，人員正在招聘，計劃正在執行。

While most of these programs will not come to market until 2021, this effort has really fired up our product managers and our engineers to know that we are investing and we'll continue to add those investments over the next few years.

雖然這些專案中的大多數要到 2021 年才會上市，但這項努力確實激發了我們的產品經理和工程師的熱情，他們知道我們正在投資，並且我們將在未來幾年繼續增加這些投資。

On the margin side, we are already working to hold fixed cost constant.

在利潤方面，我們已經在努力維持固定成本不變。

Now why I tell you the concept is very easy in theory, but it's not easy in practice.

現在為什麼我告訴你這個概念在理論上很容易，但在實務上卻不容易。

But we are developing that muscle and are using this principle as one of our core foundational pieces as we move forward.

但我們正在發展這種力量，並將這項原則作為我們前進的核心基礎部分之一。

Lastly, I want to touch on the Vertiv operating system or, as we call it moving forward, VOS.

最後，我想談談 Vertiv 作業系統，或者我們稱之為 VOS。

We took the team of over 25 people, including my direct reports to Honeywell for a full week to understand their operating system.

我們讓超過 25 人的團隊（包括我的霍尼韋爾直接下屬）花了整整一周的時間來了解他們的作業系統。

I want to thank all the Honeywell associates who hosted us during that week, and it was one of the most educational week in my professional career.

我要感謝在那一周接待我們的所有霍尼韋爾員工，這是我職業生涯中最具教育意義的一周之一。

I will get into more details on the approach to rolling out the operating system over the next few quarters.

我將在接下來的幾季詳細介紹該作業系統的推出方法。

But needless to say, it will be one of the most powerful tools we'll add to our toolkit.

但不用說，它將是我們添加到工具包中的最強大的工具之一。

The concept of VOS and everything that comes with it certainly will help us bridge the 500 basis points delta in the margin between ourselves and our peers.

VOS 的概念及其附帶的一切肯定會幫助我們彌合我們與同行之間 500 個基點的差距。

So between our top line and our bottom line initiatives, we have a lot of new areas to explore to drive growth that we know we can achieve.

因此，在我們的收入和利潤計劃之間，我們有許多新領域需要探索，以推動我們知道可以實現的成長。

Now turning to Slide 12.

現在轉向投影片 12。

We feel good about how we closed out 2019 with organic sales growth of 5.6%.

我們對 2019 年以 5.6% 的有機銷售成長感到滿意。

We achieved an all-time high in orders during Q4, and our pipeline continues to grow.

我們在第四季度的訂單量創下歷史新高，並且我們的管道繼續增長。

Where we sit right now, we expect sales growth to be between 4.5% and 5%, with most of that growth biased in the second half of this year.

目前，我們預計銷售成長將在 4.5% 至 5% 之間，其中大部分成長集中在今年下半年。

As I stated in my opening comments, the impact of the coronavirus is still dynamic.

正如我在開場白中所說，冠狀病毒的影響仍然是動態的。

But based on what we know today, we believe we can still grow organically between 4.5% to 5% range for the full year due to our expectations to partially recover the lower first quarter sales and overall conservative planning process.

但根據我們今天所了解的情況，我們相信全年的有機成長仍然可以在 4.5% 至 5% 之間，因為我們預計將部分恢復第一季較低的銷售額，並且整體規劃流程保守。

We are certainly monitoring the entire situation very closely and are staying in constant contact with our customers and believe, based on all of that, that we can maintain full year guidance.

我們當然正在非常密切地監視整個情況，並與我們的客戶保持持續聯繫，並相信，基於所有這些，我們可以維持全年指導。

Now in terms of long-term trends, we believe the market to be fundamentally solid and the data growth and the edge development will be our primary drivers.

現在就長期趨勢而言，我們相信市場基本上穩固，數據成長和邊緣開發將是我們的主要驅動力。

There will always be ebbs and flows to our business.

我們的業務總會有起起落落。

But through the cycle, we expect the macro backdrop will be very positive.

但在整個週期中，我們預期宏觀背景將非常正面。

Engineering and contracting activity is continuing to pick up, and our record order rate in Q4 and from what we've seen in the first part of Q1 provides solid proof point.

工程和承包活動正在繼續回升，我們在第四季度創紀錄的訂單率以及我們在第一季第一部分所看到的情況提供了堅實的證據。

The edge is in its early stages with key critical verticals such as retail and education where we're beginning to see really good traction.

該優勢正處於早期階段，在零售和教育等關鍵垂直領域，我們開始看到真正良好的吸引力。

Finally, on the communication side, 5G rollouts will continue to increase over the next few years.

最後，在通訊方面，未來幾年 5G 部署將繼續增加。

There are pockets of rollouts in parts of the U.S. and Asia, but the really big bulk of deployments are expected to start later part of 2020 and will go for a few years depending on the regional rollouts.

美國和亞洲部分地區有小部分部署，但真正的大部分部署預計將於 2020 年下半年開始，並將持續幾年，具體取決於區域部署情況。

Now as it relates to coronavirus, let's turn to Slide 13.

現在，由於與冠狀病毒有關，讓我們轉向幻燈片 13。

Before I even comment on the business impact and what we've been doing about it, I want to reiterate that our employees' health and safety is our top priority.

在我評論業務影響以及我們為此採取的措施之前，我想重申，員工的健康和安全是我們的首要任務。

China is a great market for us, and it's important we are a leader in following the safety and precautions.

中國對我們來說是一個巨大的市場，重要的是我們在遵守安全和預防措施方面處於領先地位。

We have made sure we work closely with the government to provide the safest workplace possible, and to date, it's been working.

我們確保與政府密切合作，盡可能提供最安全的工作場所，迄今為止，這項措施一直在發揮作用。

Almost all of our employees are back to work at our facilities in China and have been ramping up production since then.

我們幾乎所有的員工都回到了中國工廠的工作崗位，並從那時起一直在提高產量。

We jumped aggressively on this issue, not only from a safety perspective, but also from a supply chain and logistics perspective.

我們在這個問題上積極採取行動，不僅從安全角度，而且從供應鏈和物流角度。

In many instances, we helped our suppliers with masks and other items to help them open up.

在許多情況下，我們幫助供應商提供口罩和其他物品，以幫助他們開業。

And from a logistics standpoint, we have bought ahead to make sure we have the freight lines available when recovery begins.

從物流的角度來看，我們提前購買了貨物，以確保在恢復開始時我們有可用的貨運線路。

While we generally manufacture in region for region, similar to most multinational companies, we have a global supply chain with several components and subcomponents that do come from China.

雖然我們通常按地區生產，與大多數跨國公司類似，但我們擁有一個全球供應鏈，其中的多個零件和子零件確實來自中國。

So between the supply chain, our manufacturing facilities and some of the China demand side, we're projecting between $70 million and $90 million top line hit for Q1.

因此，在供應鏈、我們的製造設施和一些中國需求方之間，我們預計第一季的營收將達到 7,000 萬至 9,000 萬美元。

Please realize that the situation continues to be very dynamic globally, and this is our current estimate of the impact.

請注意，全球情勢仍然非常動態，這是我們目前對影響的估計。

We are monitoring and actively managing the situation on a daily basis, so this has the highest visibility in our company.

我們每天都會監控並積極管理情況，因此這在我們公司中具有最高的知名度。

With that, I'll turn it back over to David for the next few slides.

這樣，我將把接下來的幾張投影片轉交給 David。

Great.

偉大的。

Thanks, Rob.

謝謝，羅布。

Turning to Slide 14.

轉到投影片 14。

We hinted earlier of our expected improved and significantly positive free cash flow for 2020.

我們早些時候曾暗示，我們預計 2020 年自由現金流將有所改善並顯著為正。

Certainly a big driver of this improved cash flow is significantly lower cash interest from 2 things: one, the $1.5 billion debt pay down from SPAC proceeds; and the recently restructured debt composition of our capital structure through the paydown of 3 high interest rate notes through the proceeds from a new term loan that we just closed last week, priced at LIBOR plus 3%, 100 basis points lower than our former term loan.

當然，現金流改善的一個重要推動因素是兩件事帶來的現金利息顯著降低：一是 SPAC 收益減少了 15 億美元的債務；我們的資本結構最近重組了債務結構，透過我們上週剛結束的一項新定期貸款的收益償還了3 張高利率票據，定價為倫敦銀行同業拆借利率(LIBOR) 加3%，比我們之前的定期貸款低100 個基點。

In addition, and not reflected on this slide, we will also benefit from a 7-year floating to fixed interest rate swap associated with the new term loan.

此外，我們還將受益於與新定期貸款相關的 7 年期浮動利率到固定利率互換，這一點並未在這張投影片中反映出來。

And that will lock in a fixed 4.1% rate on $1.2 billion notional over the first 12 months and $1 billion per year thereafter.

這將在前 12 個月將 12 億美元的名目利率鎖定為 4.1%，此後每年將鎖定 10 億美元。

In the end, the SPAC transaction was truly transformational for our capital structure as we lowered our net leverage from 6.2x to 3.7x and we improved both our Moody's and S&P credit ratings, and we reduced our annual run rate cash interest by almost $160 million as reflected at the bottom of this slide.

最終，SPAC 交易真正改變了我們的資本結構，我們將淨槓桿率從 6.2 倍降低至 3.7 倍，提高了穆迪和標準普爾的信用評級，並將年度運行率現金利息減少了近 1.6 億美元正如本投影片底部所反映的那樣。

And with the strong free cash flow characteristics of our business, we certainly have a clear pathway for continued deleveraging going forward.

由於我們業務具有強大的自由現金流特徵，我們當然有一個明確的未來持續去槓桿化的途徑。

Next, moving to Slide 15.

接下來，轉到投影片 15。

This page summarizes our 2020 financial guidance.

本頁總結了我們 2020 年的財務指引。

We expect organic sales growth of 4.5% to 5% and adjusted EBITDA of $595 million, and both those figures are consistent with the projections we provided in our road show presentation late last year.

我們預計有機銷售額將成長 4.5% 至 5%，調整後 EBITDA 為 5.95 億美元，這兩個數字都與我們在去年年底路演演示中提供的預測一致。

We estimate adjusted EPS of $0.89, and we do provide a detailed reconciliation from GAAP to adjusted EPS on Page 22 of this presentation, and that's also included in the earnings release.

我們預計調整後每股收益為 0.89 美元，並且我們在本簡報第 22 頁上提供了 GAAP 與調整後每股收益的詳細調整表，這也包含在收益發布中。

We expect 2020 free cash flow on a GAAP basis, as reflected on the slide, of $130 million to $150 million.

如幻燈片所示，我們預計 2020 年以 GAAP 計算的自由現金流量為 1.3 億至 1.5 億美元。

And let's turn to Slide 16 as well.

我們也轉向投影片 16。

This 2020 free cash flow estimate at the midpoint is almost $150 million higher than 2019 free cash flow.

2020 年自由現金流預估中位數比 2019 年自由現金流高出近 1.5 億美元。

But if we adjust this free cash flow projection for items we do not expect to repeat going forward, such as transaction costs associated with the SPAC merger, that's the $21 million green bar to the right, and also adjusted for the timing of our debt refinancing, we illustrate here a 2020 pro forma annual run rate free cash flow of approximately $285 million.

但是，如果我們針對我們預計未來不會重複的項目調整自由現金流預測，例如與SPAC 合併相關的交易成本，那就是右側的2100 萬美元綠條，並且還根據我們的債務再融資時間進行了調整，我們在此說明 2020 年預計年度運行自由現金流約為 2.85 億美元。

So we call this the money slide in the presentation, and it really demonstrates the strong cash flow generation potential of our business going forward.

因此，我們在簡報中將其稱為資金幻燈片，它確實展示了我們業務未來強大的現金流生成潛力。

So with that said, I turn it back over to Rob for final thoughts prior to opening up for Q&A.

話雖如此，我在開始問答之前將其轉回給 Rob 以獲得最終想法。

Thanks, David.

謝謝，大衛。

In closing, we are pleased on how we executed in the fourth quarter as we finished out a very strong year with organic top line growth of almost 6% and bottom line growth of around 8%.

最後，我們對第四季度的執行情況感到高興，因為我們結束了非常強勁的一年，有機營收成長近 6%，淨利潤成長約 8%。

Additionally, we are excited to have Dave Cote as our Executive Chairman to provide his insight, perspective and good advice.

此外，我們很高興戴夫·科特 (Dave Cote) 擔任我們的執行主席，他將提供他的見解、觀點和良好建議。

The coronavirus outbreak will dampen the Q1 results, but we will continue to attack this topic aggressively while also balancing the safety of our employees, which is paramount.

冠狀病毒的爆發將削弱第一季的業績，但我們將繼續積極討論這個主題，同時平衡員工的安全，這是最重要的。

We anticipate our growth plan, coupled with our restructured balance sheet, will lead to good cash generation.

我們預計我們的成長計劃加上重組後的資產負債表將帶來良好的現金產生。

We see good demand drivers and are excited to execute our 2020 plans.

我們看到了良好的需求驅動因素，並很高興執行我們的 2020 年計畫。

Thank you for your support.

感謝您的支持。

I will now turn the call over to the operator to open up the line for questions.

我現在將把電話轉給接線員，以開通提問線路。

(Operator Instructions) And our first question today comes from Lance Vitanza from Cowen.

（操作員說明）今天我們的第一個問題來自 Cowen 的 Lance Vitanza。

Great job on the quarter.

本季的工作非常出色。

Could we start with the revenue target that you've set for yourselves at 1.5x industry-wide revenue growth?

我們可以從你們為自己設定的全產業收入成長 1.5 倍的收入目標開始嗎？

Could you help us think through the opportunity there?

您能幫助我們思考那裡的機會嗎？

Is that taking share?

這是搶份額嗎？

And if so, is it mostly from the half to 2/3 of the market that's fragmented still?

如果是這樣，那麼一半到 2/3 的市場是否仍處於分散狀態？

Or do you have -- do you perceive a pricing opportunity?

或者您認為存在定價機會？

I guess, any sort of granularity on how you get to that premium revenue growth would be helpful.

我想，任何關於如何實現優質收入成長的粒度都會有所幫助。

Sure.

當然。

This is Rob Johnson.

這是羅布·約翰遜。

Thank you for the question.

感謝你的提問。

What we would say is it's a combination of the things that you pretty good straight man on answering what's driving it.

我們想說的是，這是多種因素的結合，你可以很直率地回答驅動它的因素。

Taking share in colo and hyperscale, as many of you recall, over the last 3 years, that was not an initial area that was focused on under previous ownership.

正如你們許多人所記得的那樣，在過去三年中，在託管和超大規模領域佔據份額並不是先前所有權所關注的最初領域。

So taking share, be aggressive with what I call joint development and collaboration.

因此，分享、積極進取，我稱之為共同開發和協作。

The second part of our growth area is coming from what we call the white space and more edge devices.

我們成長領域的第二部分來自我們所謂的空白區域和更多邊緣設備。

We've expanded our product lines over the last year, 1.5 years, 2 years to have a complete set of products.

我們去年、1.5年、2年擴大了產品線，擁有了一整套產品。

So we expect to take share and also participate in that edge growth.

因此，我們希望獲得份額並參與這一優勢成長。

And finally, you mentioned pricing.

最後，您提到了定價。

We were able to get price in 2019, and we will continue to exercise that muscle as we go forward.

我們能夠在 2019 年獲得價格，並且我們將在前進的過程中繼續發揮這種力量。

And we're excited about that and our ability to get price.

我們對此以及我們獲得價格的能力感到興奮。

So I think it's a combination of market share, taking some more of that gray space and eliminating some of the smaller competitors globally and then driving hard on the edge and white space.

因此，我認為這是市場份額的結合，佔據更多的灰色空間並消除全球一些較小的競爭對手，然後在邊緣和空白領域大力發展。

If I have time for a second question, I wanted to ask you a little bit more about China and the coronavirus effect.

如果我有時間問第二個問題，我想問你更多關於中國和冠狀病毒影響的問題。

And I thought Slide 13 was really helpful.

我認為投影片 13 真的很有幫助。

But could you talk about your direct exposure to China in a little bit more detail?

但您能更詳細地談談您與中國的直接接觸嗎？

Perhaps, the total number of facilities, the percent of product that is supplied from China, is that product being served?

或許，設施總數、從中國供應的產品的百分比，是否正在提供該產品？

Is it going just to your China revenue base?

它只用於您的中國收入基礎嗎？

Or is it going worldwide to other revenue areas, et cetera?

或者它會走向全球其他收入領域等等？

Yes.

是的。

So I'll give some color and then let David kind of fill in.

所以我會給一些顏色，然後讓大衛來補充。

First of all, we have 2 facilities in China, Xiamen and Mianyang, not -- none in the Hubei Province.

首先，我們在中國有兩個工廠，廈門和綿陽，在湖北省沒有。

So that's why we're back up and running from an exposure perspective.

這就是我們從曝光角度恢復並運行的原因。

What I'd say is China made up in 2019 about $669 million or 15% of our net sales as a company.

我想說的是，2019 年中國市場銷售額約為 6.69 億美元，占我們公司淨銷售額的 15%。

The impact that we're seeing, as I mentioned earlier, while we're pretty much in region for region for final assembly and test, like most global multinational companies, we've get a lot of components and subcomponents from the China region.

正如我之前提到的，我們所看到的影響雖然我們幾乎在一個地區進行最終組裝和測試，但像大多數全球跨國公司一樣，我們從中國地區獲得了大量零件和子零件。

As far as the breakout of how much is local versus global, David, I don't know if you have a few comments on that.

至於本地與全球的突破，大衛，我不知道你對此有何評論。

Yes.

是的。

Just very broadly, our direct material purchases in any given year are about $1.8 billion.

廣義而言，我們在任何一年的直接材料採購額約為 18 億美元。

And I would say less than 1/3 of that come from China, whether it is sort through external suppliers or internally from our plant sourcing the other 2 regions.

我想說，其中不到 1/3 來自中國，無論是透過外部供應商還是從我們工廠內部採購其他兩個地區。

So there is certainly a supply chain impact in both the Americas and EMEA related to the situation in China.

因此，與中國的情況相關的美洲和歐洲、中東和非洲供應鏈肯定會受到影響。

(Operator Instructions) Our next question comes from Mark Delaney from Goldman Sachs.

（操作員指示）我們的下一個問題來自高盛的馬克·德萊尼（Mark Delaney）。

First question was on the coronavirus.

第一個問題是關於冠狀病毒的。

I'm trying to better understand the supply chain ramifications.

我正在嘗試更好地了解供應鏈的影響。

On the one hand, they were just talking about having its employees back to work in your facilities and you've been able to prepurchase components, but you're also talking about some potential supply chain disruptions.

一方面，他們只是在談論讓員工回到你的工廠工作，並且你已經能夠預購組件，但你也在談論一些潛在的供應鏈中斷。

So I'm just -- help me to better reconcile some of those comments and understand, are you already seeing an ability to ship some products?

所以我只是 - 幫助我更好地協調其中一些評論並理解，您是否已經看到了交付某些產品的能力？

Is it more just conservatism?

這只是保守主義嗎？

Just any kind of reconciliation on some of those comments and just better understanding your own ability to manufacture.

只是對其中一些評論進行任何形式的協調，並更好地了解您自己的製造能力。

Yes.

是的。

So this is Rob.

這就是羅布。

I'll start off, and then Dave can drive a little bit -- David can drive a little bit further into this.

我先開始，然後戴夫可以開一點——大衛可以開得更遠一點。

What we did -- we're back to work.

我們做了什麼——我們恢復工作了。

We do rely on a supply chain base for PCB boards, discrete components and things like that.

我們確實依賴 PCB 板、分立元件等的供應鏈基礎。

And while we're pretty much back to full strength, other suppliers are not and we're working with them to help get back online.

雖然我們幾乎已經完全恢復正常，但其他供應商還沒有恢復正常，我們正在與他們合作，以幫助恢復正常運作。

So that's really kind of where, I would say, this suffering is coming from.

所以我想說，這確實是這種痛苦的來源。

It's not really our ability to get things done, but it's the subcomponent suppliers that just aren't fully back to speed.

這並不是我們完成工作的能力，而是子組件供應商尚未完全恢復正常速度。

David?

大衛？

Yes, I would just echo what Rob is mentioning.

是的，我只是重複羅布提到的內容。

The larger components, the EMS power modules, we feel in pretty good shape at this point.

較大的組件，即 EMS 電源模組，我們目前感覺狀況良好。

What we know today with that supply, it's really those smaller suppliers that are having, at this point, a pass-through effect in Americas and, to a lesser extent, with EMEA.

據我們今天所知，就供應而言，實際上是那些規模較小的供應商在美洲產生了傳遞效應，在較小程度上也對歐洲、中東和非洲產生了傳遞效應。

Got it.

知道了。

That's helpful.

這很有幫助。

And my follow-up question or second question was on the order strength that the company reported, which was very nice to see.

我的後續問題或第二個問題是關於該公司報告的訂單強度，這很高興看到。

Can you talk about the breadth of those orders?

能談談這些訂單的範圍嗎？

I know there's times where the company has some large projects.

我知道公司有時會有一些大型專案。

And so is this -- was this broad-based order strength that Vertiv was seeing in the fourth quarter?

那麼，維諦技術 (Vertiv) 在第四季度看到的這種廣泛的訂單實力是否也是如此？

Or was it more specific to it, a large project or 2?

還是更具體，一個或兩個大專案？

And any color you can give on the orders in terms of what the end markets may be driving it?

您可以根據終端市場的推動力對訂單進行任何描述嗎？

Sure.

當然。

This is Rob.

這是羅布。

I'll start off and then get -- let Gary follow through.

我會開始，然後讓加里跟進。

I'd say, in general, it was just kind of broad-based across all the segments that we participate in.

我想說，總的來說，它在我們參與的所有細分市場中都有廣泛的基礎。

We just saw strength in, whether it's telecom, consumer and industrial and our hyperscale and even traditional enterprise and edge.

我們剛剛看到了優勢，無論是電信、消費和工業，還是我們的超大規模，甚至是傳統企業和邊緣。

So there was not -- I wouldn't say 1 big area that stood out as we go forward.

因此，在我們前進的過程中，我不會說有一個突出的大領域。

As you know and we've talked about it, a lot of our ITI business has traditionally been really kind of project-based and that ebbs and flows over time.

如您所知，我們已經討論過，我們的許多 ITI 業務傳統上實際上都是基於專案的，並且隨著時間的推移而起伏不定。

We're working on driving the channel to make it more of a consistent flow business, so we'll continue to do that.

我們正在努力推動該管道，使其成為一個更一致的流程業務，因此我們將繼續這樣做。

But we saw it pretty much shrink around -- kind of around the globe and in all the verticals.

但我們看到它幾乎在全球各地和所有垂直領域縮小。

Europe certainly stands out as probably one of the stronger areas for us from an order perspective coming out of the gate this year.

從今年的訂單角度來看，歐洲無疑是我們實力較強的地區之一。

And ladies and gentlemen, with that, we'll conclude today's question-and-answer session.

女士們、先生們，我們今天的問答環節就到此結束。

I'd like to turn the conference call back over to Rob Johnson for any closing remarks.

我想將電話會議轉回給羅布·約翰遜（Rob Johnson）做結束語。

Thank you, operator.

謝謝你，接線生。

I'm going to close the call by saying how excited I am about being a public company and the great path ahead for Vertiv.

在結束這次電話會議時，我要說的是，我對成為上市公司以及維諦技術 (Vertiv) 未來的偉大道路感到非常興奮。

I'd also like to thank our 20,000 employees around the world for working hard every day to take care of our customers.

我還要感謝我們在世界各地的 20,000 名員工每天努力工作來照顧我們的客戶。

We appreciate everyone's time today, and we look forward to speaking to you soon again.

感謝大家今天抽出時間，我們期待很快能再次與您交談。

Thank you.

謝謝。

Ladies and gentlemen, the conference has now concluded.

女士們、先生們，會議現已結束。

We do thank you for attending today's presentation.

我們非常感謝您參加今天的演講。

You may now disconnect your lines.

現在您可以斷開線路。