Vertiv Holdings Co (VRT) 2024 Q2 法說會逐字稿

Good morning. My name is Brika, and I will be your conference operator today. At this time, I would like to welcome everyone to the Vertiv's second-quarter 2024 earnings conference call. (Operator Instructions) Please note that this call is being recorded. I would now like to turn the program over to your host for today's conference call, Lynne Maxeiner Vice President of Investor Relations. You may begin.

早安.我叫 Brika，今天我將擔任你們的會議操作員。此時此刻，我歡迎大家參加 Vertiv 2024 年第二季財報電話會議。 （操作員說明）請注意，此通話正在錄音。現在我想將會議議程交給今天電話會議的主持人、投資者關係副總裁 Lynne Maxeiner。你可以開始了。

Great. Thank you, Brika. Good morning, and welcome to Vertiv's second-quarter 2024 earnings conference call. Joining me today are Vertiv's Executive Chairman, Dave Cote; Chief Executive Officer, Giordano Albertazzi; and Chief Financial Officer, David Fallon.

偉大的。謝謝你，布里卡。早安，歡迎參加 Vertiv 2024 年第二季財報電話會議。今天與我一起出席的還有維諦技術 (Vertiv) 執行主席戴夫·科特 (Dave Cote)；佐丹奴阿爾貝塔齊執行長；和財務長大衛法倫。

Before we begin, I would 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. 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. We refer you to the cautionary language included in today's earnings release, and you can learn more about these risks in our annual and quarterly reports and other filings made with the SEC.

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。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。我們建議您參考今天的收益發布中包含的警示性語言，您可以在我們的年度和季度報告以及向 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. We undertake no obligation to update these statements as a result of new information or future events.

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

在本次電話會議中，我們也將介紹 GAAP 和非 GAAP 財務指標。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。接下來，我會將電話轉給執行主席戴夫·科特 (Dave Cote)。

Good morning, everyone. While I am quite pleased with our continuing trend of very strong financial performance. As I think about what attracted me to Vertiv, it was a great position in a good industry. Unfortunately, it turned into a great position in a great industry. There was a lot of work to do to get the business moving in a direction to consistently drive value and increase returns to shareholders. I have to say Gio and his team have done an excellent job starting to unlock this potential.

大家，早安。我對我們持續強勁的財務業績趨勢感到非常滿意。當我想到維諦技術 (Vertiv) 吸引我的原因時，我發現這是一個優秀行業中的絕佳職位。不幸的是，它變成了一個偉大產業的重要地位。要讓業務朝著持續推動價值並增加股東回報的方向發展，還有很多工作要做。我必須說 Gio 和他的團隊在釋放這一潛力方面做得非常出色。

Initial signs of progress are evident in the financial metrics, strong audits and sales and substantially increased profit and cash flow. A better operating company delivers better results. It's an interesting time, both in our industry and the world at large. Significant changes underway for both. The industry is rapidly expanding and evolving and Vertiv is well positioned to strengthen its market leadership with increasing R&D and capacity expansions to further distinguish our unique position as an industry leader.

初步進展跡像在財務指標、強有力的審計和銷售以及利潤和現金流的大幅增加中顯而易見。更好的營運公司可以帶來更好的績效。對於我們的產業和整個世界來說，這是一個有趣的時刻。兩者都正在發生重大變化。該行業正在迅速擴張和發展，維諦技術 (Vertiv) 已做好充分準備，透過加強研發和產能擴張來加強其市場領導地位，以進一步凸顯我們作為行業領導者的獨特地位。

We're gaining market share in a rapidly growing industry as a result of our new products and significantly improved operations. At the same time, we're strengthening the resilience of our organization. 2024 is shaping up to be a great year and sets a very strong foundation for future years to deliver sustained value creation. So with that, I'll turn the call over to Gio.

由於我們的新產品和顯著改進的運營，我們在快速成長的行業中獲得了市場份額。同時，我們正在增強組織的彈性。 2024 年將是偉大的一年，為未來幾年持續創造價值奠定堅實的基礎。因此，我會將電話轉給 Gio。

Well, thank you, Dave, and we go to slide 3. We had a very strong first half of 2024. Q2 Organic sales were up 14%, led by Americas with strong growth in EMEA as well. We continue to see very strong orders growth, up 57% year-on-year and up 10% sequentially from a very high level in Q1. Book-to-bill remains very high as well with Q2 at 1.4x. More discussion to follow on this point on slide 5.

好吧，謝謝戴夫，我們轉到幻燈片3。2024 年上半年我們的業績非常強勁。非洲地區的成長也強勁。我們繼續看到訂單成長非常強勁，年增 57%，比第一季的高水準環比成長 10%。訂單出貨比仍然非常高，第二季為 1.4 倍。關於這一點的更多討論將在投影片 5 中進行。

Pipeline velocity has continued to increase, and we are seeing the acceleration in large orders. The same dynamics we shared with you in April are continuing for large orders. Customers require longer delivery dates than in the past. Hence, a lot of the orders are creating backlog in '25 and beyond. Adjusted operating profit was $382 million, and adjusted operating margins expanded by 110 basis points to 19.6%.

管道速度持續增加，我們看到大訂單的加速成長。我們在四月與您分享的相同動態在大訂單中仍在繼續。客戶要求比過去更長的交貨日期。因此，許多訂單在 25 年及以後造成了積壓。調整後營業利潤為 3.82 億美元，調整後營業利益率成長 110 個基點，達到 19.6%。

As Dave mentioned, better operating companies delivered better results. Our adjusted free cash flow is another good story, generating $333 million in the second quarter. We are converting our profitability to very good cash flow performance. Our net leverage was 1.8x at the end of Q2, so well within our targeted range of 1x to 2x. We again raised our full year guidance across all financial metrics and expect organic growth of 13%, adjusted operating profit of $1.435 billion with margin expanding to 18.7% and adjusted free cash flow of $875 million, up $50 million from previous guidance.

正如戴夫所提到的，經營更好的公司帶來了更好的業績。我們調整後的自由現金流是另一個好故事，第二季產生 3.33 億美元。我們正在將獲利能力轉化為非常好的現金流表現。第二季末我們的淨槓桿率為 1.8 倍，完全在我們 1 倍至 2 倍的目標範圍內。我們再次調高了所有財務指標的全年指引，預計有機成長13%，調整後營業利潤為14.35 億美元，利潤率擴大至18.7%，調整後自由現金流為8.75 億美元，比之前的指引增加5000萬美元。

Let's go to slide 4 now. You may recognize this slide. We wanted to use it once again to give a directional indication of what we are seeing in the market. By and large, the market remains quite healthy, and we see the continued acceleration of the infrastructure built out in hyperscale and colo markets. High density and liquid crude chips are a reality, and this accelerates the demand for AI infrastructure. We see this happening in the Americas, but also starting in EMEA and Asia with some positive market signs for colocation and cloud in China as well.

現在讓我們轉到投影片 4。您可能認識這張投影片。我們想再次使用它來為我們在市場上看到的情況提供方向指示。總的來說，市場仍然相當健康，我們看到超大規模和託管市場的基礎設施建設持續加速。高密度、液態的粗晶片已成為現實，加速了對人工智慧基礎設施的需求。我們看到這種情況在美洲發生，但歐洲、中東和非洲和亞洲也開始出現這種情況，中國的託管和雲端也出現了一些正面的市場跡象。

Enterprise remains stable yet, we expect to see AI positively impact enterprise over time, and this is starting in the Americas. Telecom remains subdued as CapEx spending has yet to fully rebound. Commercial and industrial markets are healthy as there is a lot of infrastructure spending happening in the Americas and APAC regions.

企業仍保持穩定，我們預計隨著時間的推移，人工智慧將對企業產生積極影響，而這將從美洲開始。由於資本支出尚未完全反彈，電信業仍低迷。商業和工業市場健康發展，因為美洲和亞太地區有大量基礎設施支出。

So overall, the market environment is encouraging, especially for data centers, which represent 75% of our end market exposure. We have heard feedback from investors about the data center market becoming a more conspicuous place these days from a competitive standpoint, this is true. But we believe we have competitive advantages that are tangible quite unique and being further reinforced.

因此，總體而言，市場環境令人鼓舞，尤其是資料中心，它占我們終端市場份額的 75%。我們聽到投資人的回饋，從競爭的角度來看，資料中心市場如今變得更加引人注目，這是事實。但我們相信，我們擁有明顯且獨特的競爭優勢，並且正在進一步加強。

As data centers become more critical, I believe Vertiv becomes even more distinguished. We are not selling only 1 point product or only one small part of say, the thermal chain. We are selling the entire critical infrastructure through data center. With power and cool and service data centers, we provide complete solutions. We act as the connective tissue between IT and facilities in a data center. It is a rare position in the industry, born of over 50 years of experience. We don't think this is easily replicated, and our orders are a good representation of our customers' trust inverted.

隨著資料中心變得越來越重要，我相信 Vertiv 會變得更加出色。我們不只銷售 1 點產品，或只銷售熱鏈的一小部分。我們透過資料中心銷售整個關鍵基礎設施。憑藉電力、冷卻和服務資料中心，我們提供完整的解決方案。我們充當資料中心 IT 和設施之間的結締組織。這是業界罕見的職位，誕生於 50 多年的經驗。我們認為這不容易複製，我們的訂單很好地代表了客戶的信任倒轉。

Certainly, there is intense focus on the liquid cooling portion of the market and understandably so at this moment. Our advantages are clear. We have a comprehensive portfolio of liquid cooling technologies, direct-to-chip, immersion, in-row CDUs, in-rack CDUs. We adore heat exchanges, and we know how to integrate these key technologies into the entire thermal chain solution. This differentiates Vertiv.

當然，市場上的液體冷卻部分受到高度關注，這是可以理解的。我們的優勢很明顯。我們擁有全面的液體冷卻技術組合、直接晶片冷卻技術、浸入式冷卻技術、行內 CDU 技術、機架內 CDU 技術。我們熱愛熱交換，並且知道如何將這些關鍵技術整合到整個熱鏈解決方案中。這使得維諦技術 (Vertiv) 與眾不同。

We continue to see direct-to-chip as our customers' prevailing technology of choice, and we have a complete portfolio of technology solutions way before deployment. Surrounding this is a global service organization with almost 4,000 field service engineers. We're talking minutes and hours to get to a customer site. It is very important to our customers to have local service support.

我們仍然將直接晶片視為客戶的主要選擇技術，並且在部署之前我們擁有完整的技術解決方案組合。其周圍是一個擁有近 4,000 名現場服務工程師的全球服務組織。我們正在談論到達客戶現場的幾分鐘和幾小時。擁有本地服務支援對我們的客戶來說非常重要。

So we see market participants emerging with point products in liquid cooling, a small part of the overall thermal solution for a bigger center, but they have a far different profile than Vertiv. And I would say we aspire to be an even bigger player in liquid cooling, and we have very good reasons to believe our ambition is indeed reasonable.

因此，我們看到市場參與者正在推出液體冷卻方面的單點產品，這是大型中心整體散熱解決方案的一小部分，但他們的形象與維諦技術 (Vertiv) 截然不同。我想說，我們渴望成為液體冷卻領域更大的參與者，我們有充分的理由相信我們的雄心壯志確實是合理的。

So let's move to slide 5 now. Another quarter of extremely strong order growth, pipeline velocity increased, and we continue to see AI scaling, especially in the Americas. The strength of orders is across our portfolio. Power management and thermal management orders grew at very similar rates in Q2 and both convincingly strong. There is a strong correlation between power and cooling, and we would expect that balance of sales in our portfolio to continue over time.

現在讓我們轉到投影片 5。又一個季度訂單增長極其強勁，管道速度增加，我們繼續看到人工智慧的擴展，特別是在美洲。我們的產品組合中訂單量強勁。第二季電源管理和熱管理訂單的成長速度非常相似，而且都非常強勁。電力和冷卻之間存在很強的相關性，我們預計我們的產品組合中的銷售平衡將隨著時間的推移而持續。

This quarter, we have introduced a trailing 12-month orders metric. As we have previously highlighted, there can be a natural variation to the timing of large orders in any quarter. Trailing 12-month is a good metric to assess order activity, smoothing some of the quarter-to-quarter push and pulls.

本季度，我們引入了過去 12 個月的訂單指標。正如我們之前強調的，任何季度的大訂單時間都可能存在自然變化。過去 12 個月是評估訂單活動的一個很好的指標，可以平滑一些季度與季度之間的推升和拉動。

We also know we have increasingly tough comparisons ahead, and we believe we still see low double-digit orders growth in the third quarter on a year-on-year basis, but we expect a sequential decline in orders from an extremely high second quarter. This is where the trailing 12-month order metric can be helpful as we expect to stay in the 30s range, indicating a very healthy and strong order trend, supportive of our financial guidance.

我們也知道，未來的比較將變得越來越艱難，我們相信第三季的訂單同比增長仍為兩位數，但我們預計訂單將從第二季的極高水準連續下降。這就是追蹤 12 個月訂單指標可能會有所幫助的地方，因為我們預計將保持在 30 的範圍內，這表明訂單趨勢非常健康和強勁，支持我們的財務指引。

As mentioned, customer request dates elongated for large projects in the hyper and colo space in general as the scale of deployments continue to increase. We view this as the industry wanting to manage this growth and technology transition in an orderly manner. As a consequence, a lot of the orders are for future years. And we feel good about how 2025 is shaping. Pipeline, orders, backlog, all three are positive in the same direction, and we like what we are seeing.

如前所述，隨著部署規模的不斷增加，超級和託管空間中的大型專案的客戶請求日期通常會延長。我們認為，產業希望以有序的方式管理這種成長和技術轉型。因此，許多訂單都是未來幾年的。我們對 2025 年的發展感到滿意。管道、訂單、積壓訂單，這三者都朝著同一個方向積極發展，我們喜歡我們所看到的。

Let's now look at the right side of slide 5. We continue to focus on resilience to navigate an increasingly complicated geopolitical environment, multi-sourcing strategies, risk identification and mitigation plans are key to building supply chain resilience. Inflation, we believe it is here to stay, as mentioned a few times, we price with this in mind and have a good process and governance in place to stay price cost positive. We continue to expand capacity, including adding more modular and thermal management capacity in the Americas besides the expansion plans we already shared with you across the other technologies.

現在讓我們來看看投影片 5 的右邊。通貨膨脹，我們相信它會持續下去，正如多次提到的，我們在定價時考慮到了這一點，並有良好的流程和治理來保持價格成本正值。我們繼續擴大產能，除了我們已經與您分享的其他技術的擴張計劃之外，還包括在美洲增加更多的模組化和熱管理產能。

The ramp-up of liquid cooling production capacity globally continues, and it is quite encouraging. This technology is in three of our plans today, and we are on track to finish in 2024 with 45x capacity increase compared to baseline at the end of 2023. So we are investing at the same time -- as we are investing at the same time, Vertiv Operating System continues to be a key driver to liberate footprint capacity to accommodate our growth trajectory.

全球液冷產能持續提升，令人鼓舞。這項技術已納入我們今天的三個計劃中，我們預計在 2024 年完成，與 2023 年底的基線相比，產能增加 45 倍。仍然是釋放佔地面積容量以適應我們的成長軌蹟的關鍵驅動力。

If the market grows faster, we will not constrain ourselves and we are diligent as we look at different demand scenarios. We believe our capital expenditure forecast of between $175 million and $200 million will cover the scenarios needed to meet the demand trajectory.

如果市場成長得更快，我們就不會約束自己，我們會勤奮地看待不同的需求情境。我們相信，我們 1.75 億至 2 億美元之間的資本支出預測將涵蓋滿足需求軌跡所需的情境。

Let's now go to slide 6. You have heard us mentioned service as a differentiator and one not easily replicated. Service is one of our superpowers. It demonstrates we have been in the data center industry for decades. Service represents 23% of our total sales last year. And additionally, service business has the financial characteristics you would expect, including strong margin profile that has been expanding. We like this part of the business a lot, and it is uniquely strong for Vertiv. Service opportunity is proportional to the critical nature of the application.

現在讓我們轉到投影片 6。服務是我們的超能力之一。它表明我們已經進入數據中心行業數十年。去年，服務占我們總銷售額的 23%。此外，服務業務具有您所期望的財務特徵，包括一直在擴張的強勁利潤狀況。我們非常喜歡這部分業務，而且它對於 Vertiv 來說具有獨特的優勢。服務機會與應用程式的關鍵性質成正比。

In an AI high-density world, criticality is increasing, and we believe service matters even more. The stakes are significantly higher. The value of each rack can be in the millions of dollars. The thermal management and power management systems are becoming more complex, and the nature of the loads more unforgiving.

在人工智慧高密度的世界中，重要性正在增加，我們相信服務更加重要。賭注要高得多。每個機架的價值可達數百萬美元。熱管理和電源管理系統變得越來越複雜，負載的性質也變得更加嚴酷。

Telemetry, predictive services and ability to have experts on sites in minutes or as is essential. We are training our global service engineers proactively to be a partner of choice to help our customers navigate this complexity.

遙測、預測服務以及在幾分鐘內或必要時讓專家到達現場的能力。我們正在積極培訓我們的全球服務工程師，使其成為幫助我們的客戶應對這種複雜性的首選合作夥伴。

In fact, I'm absolutely thrilled to share an exciting use case where Compass data centers have chosen Vertiv to provide full-time site-based embedded Vertiv crews to do service management and predictive maintenance on some Compass data center sites. The scale of data center deployment is becoming much larger the value of dedicated service personnel on site full-time is becoming absolutely compelling. We thank Compass for their trust in Vertiv. With that, over to you David.

事實上，我非常高興能分享一個令人興奮的用例，其中 Compass 資料中心選擇 Vertiv 提供全職現場嵌入式 Vertiv 工作人員，在一些 Compass 資料中心網站上進行服務管理和預測性維護。資料中心部署的規模正在變得越來越大，現場全職服務人員的價值變得絕對引人注目。我們感謝 Compass 對 Vertiv 的信任。好了，交給你了，大衛。

Great. Thanks, Gio, and good morning, everyone. Turning to slide 7. This slide summarizes our second quarter financial results. Our organic net sales increased approximately 14%, slightly above the high end of our guidance, primarily driven by, once again, strong performance in the Americas where organic sales were up 17% from prior year.

偉大的。謝謝吉奧，大家早安。轉向投影片 7。我們的有機淨銷售額成長了約 14%，略高於我們指導的上限，這主要是由於美洲地區的強勁表現再次推動的，該地區的有機銷售額比上年增長了 17%。

Adjusted operating profit of $382 million was $131 million higher than last year driven by the higher volume and improved variable contribution margin, which benefited from both year-over-year price cost and significant productivity gains. This improved productivity, which has been catalyzed by the continued implementation of VOS principles in our plants and within our functions and notably procurement was the primary driver for the $57 million beat versus the midpoint of guidance and also a primary driver for the 510 basis point increase in adjusted operating margin to 19.6% just 40 basis point short of our long-term target. We are seeing the benefits of an intense focus on operational execution across all parts of the business. And the exciting thing is that there's still a lot more to do. So please stay tuned.

調整後營業利潤為 3.82 億美元，比去年增加 1.31 億美元，這是由於銷售增加和可變貢獻邊際改善所致，這得益於同比價格成本和生產力的顯著提高。在我們的工廠和職能範圍內，特別是採購中持續實施 VOS 原則，促進了生產率的提高，這是比指導中點增加 5,700 萬美元的主要驅動力，也是 510 個基點增長的主要驅動力調整後的營業利益率達19.6%，僅比我們的長期目標低40 個基點。我們看到了高度關注業務各部門的營運執行的好處。令人興奮的是，還有很多事情要做。所以請繼續關注。

Moving to the right. Our second quarter adjusted diluted EPS was $0.67, $0.21 higher than last year, primarily driven by higher adjusted operating profit. We generated $333 million of adjusted free cash flow in the quarter, over $100 million better than last year, primarily due to higher profitability and improved working capital, which declined to 17.1% of annualized second quarter sales. Some of this trade working capital improvement was due to favorable timing, including with advanced payments, which effectively shifted cash into the second quarter from the third and fourth quarters. Nonetheless, good progress with cash flow and working capital, but just like margin, still a lot more to do.

向右移動。我們第二季調整後攤薄每股收益為 0.67 美元，比去年高 0.21 美元，主要是由於調整後營業利潤增加所致。本季我們產生了 3.33 億美元的調整後自由現金流，比去年增加了 1 億多美元，這主要是由於盈利能力提高和營運資金改善，營運資金佔第二季度年化銷售額的 17.1%。貿易營運資本的改善部分歸功於有利的時機，包括提前付款，這有效地將現金從第三季和第四季轉移到了第二季。儘管如此，現金流和營運資本方面取得了良好進展，但就像保證金一樣，仍有許多工作要做。

Finally, on this page, net leverage was 1.8 times at the end of the quarter within our stated leverage target range of 1 times to 2 times and liquidity strengthened to $1.2 billion. Our balance sheet is strong and should remain strong based upon our expectations for free cash flow as we focus on flexibility to evaluate capital deployment opportunities.

最後，在此頁面上，本季末淨槓桿率為 1.8 倍，處於我們規定的 1 倍至 2 倍槓桿目標範圍內，流動性增強至 12 億美元。我們的資產負債表很強勁，根據我們對自由現金流的預期，應該保持強勁，因為我們注重評估資本部署機會的靈活性。

Turning to page 8. This slide summarizes our second quarter segment results. As mentioned, we saw strong top line growth in the Americas, up 17% from last year. Primarily from continued momentum in the hyperscale and colocation markets. More impressively, this growth was on top of a challenging comparison to second quarter 2023, where sales were up 48% from 2022. Adjusted operating margin in the Americas expanded 540 basis points to 25.4% with the increase driven by favorable price cost and significant productivity. APAC sales increased 6% organically, with China slightly down, but more than offset by strong mid-teen growth in India and the rest of Asia.

翻到第 8 頁。如前所述，我們看到美洲地區的營收成長強勁，比去年成長 17%。主要來自超大規模和主機託管市場的持續成長動能。更令人印象深刻的是，與2023 年第二季相比，這一成長充滿挑戰，2023 年第二季銷售額較2022 年成長48%。美洲調整後的營業利潤率擴大了540 個基點，達到25.4% 。亞太地區銷售額有機成長 6%，其中中國略有下降，但被印度和亞洲其他地區強勁的中位數成長所抵消。

We still characterize China as stable. But based upon visibility into an improving sales pipeline, we are optimistic that China will commence year-over-year growth in the second half. APAC adjusted operating margin decreased 180 basis points from last year, in part due to a discrete $6 million expense in this year's second quarter. However, on a year-to-date basis, APAC operating margins are still 100 basis points higher than last year despite this onetime expense, and we expect operating margins to increase in the back half of the year, correlated with the expected increase in second half volume.

我們仍然認為中國是穩定的。但基於銷售管道改善的可見性，我們樂觀地認為中國將在下半年開始較去年同期成長。亞太地區調整後的營業利潤率比去年下降了 180 個基點，部分原因是今年第二季的 600 萬美元的離散費用。然而，從年初至今來看，儘管有這筆一次性費用，亞太地區的營業利潤率仍比去年高出100 個基點，我們預計今年下半年的營業利潤率將有所增加，與第二季度的預期增長相關。

EMEA organic sales increased 14% in the second quarter, in part driven by strong modular solutions growth. We are certainly encouraged with the momentum in this part of the business as customers increasingly use modular solutions to accelerate expansion of data center capacity. EMEA adjusted operating margin increased 480 basis points to 25.9% as EMEA and Americas continue to compete for highest regional adjusted operating margin. So EMEA won the quarter, but the Americas is ahead year-to-date, and we'll see how the rest of the year plays out.

第二季度歐洲、中東和非洲地區的有機銷售額成長了 14%，部分原因是模組化解決方案的強勁成長。隨著客戶越來越多地使用模組化解決方案來加速資料中心容量的擴展，我們當然對這部分業務的發展勢頭感到鼓舞。歐洲、中東和非洲地區調整後營業利潤率成長 480 個基點，達到 25.9%，因為歐洲、中東和非洲地區和美洲繼續爭奪最高區域調整後營業利潤率。因此，歐洲、中東和非洲地區贏得了本季的勝利，但美洲地區今年迄今仍處於領先地位，我們將看看今年剩餘時間的表現如何。

Moving to slide 9. This slide summarizes our third quarter guidance. We are expecting a third quarter that looks largely consistent with second quarter including organic sales growth of approximately 14%, offset by a $20 million foreign exchange headwind. The regional sales growth profile is slightly different with all three regions expected to grow in the low teens which implies sequential acceleration in APAC and notably China, as I referenced on the previous slide. We expect third quarter adjusted operating profit of $385 million at the midpoint and adjusted operating margin of 19.6%, up 260 basis points from last year's third quarter, with expected benefits from operational leverage, price costs, and continued productivity gains.

轉到投影片 9。我們預計第三季與第二季基本一致，其中有機銷售成長約 14%，但被 2,000 萬美元的外匯逆風所抵銷。區域銷售成長情況略有不同，所有三個區域的成長預計都在十幾歲以下，這意味著亞太地區，尤其是中國的連續加速，正如我在上一張幻燈片中提到的那樣。我們預計第三季調整後營業利潤中點為 3.85 億美元，調整後營業利潤率為 19.6%，比去年第三季增長 260 個基點，預計將受益於營運槓桿、價格成本和持續的生產力提高。

Next, turning to slide 10, our full year guidance. After a strong first half, we are increasing the midpoint of our sales guidance by $50 million, including $75 million organically, partially offset by $25 million of incremental foreign exchange headwinds. Higher organic growth is primarily in the Americas and APAC.

接下來，轉向投影片 10，我們的全年指導。經過上半年的強勁表現後，我們將銷售指導的中點提高了 5000 萬美元，其中包括 7500 萬美元的有機增長，部分被 2500 萬美元的增量外匯逆風所抵消。較高的有機成長主要出現在美洲和亞太地區。

We are also increasing the midpoint of our adjusted operating profit guide by $85 million to $1.435 billion due in part to higher volume, but also based upon higher expected variable contribution margin in the second half, driven by continued productivity, both in procurement and manufacturing.

我們也將調整後營業利潤指南的中點提高了8,500 萬美元，達到14.35 億美元，部分原因是銷量增加，但也基於下半年預期可變貢獻率更高，這受到採購和製造持續生產力的推動。

As a result, we are increasing our adjusted operating margin guidance to 18.7% at the midpoint, 100 basis points higher than previous guidance and 200 basis points higher than initial full year expectations from our November investor conference.

因此，我們將調整後營業利潤率指引上調至中點 18.7%，比先前的指引高出 100 個基點，比 11 月投資者會議最初的全年預期高出 200 個基點。

Now some analysts will likely inquire why year-over-year incrementals are not projected to stay above 60% for the second half as they were in the first half. And in short, year-over-year variable contribution margin comparisons are more challenging in the back half of the year as our productivity initiatives accelerated in the last two quarters in 2023. In addition, we anticipate a ramp-up of fixed costs in this year's back half as we continue to prioritize investment in capacity and technology.

現在，一些分析師可能會問，為什麼下半年的同比增量預計不會像上半年那樣保持在 60% 以上。簡而言之，隨著我們的生產力計劃在 2023 年最後兩個季度加速，同比可變貢獻邊際比較在今年下半年更具挑戰性。下半年，我們繼續優先考慮對產能和技術的投資。

The 18.7% full year adjusted operating margin guidance propels us closer to our long-term target of 20% plus. Certainly, this long-term target is within range, and we expect to exit the fourth quarter near that level, which sets a good foundation for 2025. Our projected 2024 adjusted diluted EPS of $2.50 at the midpoint, is more than 40% higher than 2023, primarily driven by higher adjusted operating profit, like last quarter, we do provide additional information on income taxes and share count in the appendix.

18.7% 的全年調整後營業利潤率指導推動我們更接近 20% 以上的長期目標。當然，這個長期目標在範圍之內，我們預計第四季度將接近該水平，這為2025 年奠定了良好的基礎。高出40% 以上。

Finally, for me on this slide, we increased adjusted free cash flow guidance by $50 million to $875 million, primarily driven by higher adjusted operating profit and partially offset by higher income taxes and additional investment in trade working capital. Our full year adjusted free cash flow guidance implies approximately $440 million of cash generation in the second half, which we expect to be relatively uniform in the third and fourth quarters. And with that said, I turn it back over to Gio.

最後，對我來說，在這張幻燈片中，我們將調整後的自由現金流指引增加了5000 萬美元，達到8.75 億美元，這主要是由於調整後營業利潤的增加，部分被更高的所得稅和貿易營運資本的額外投資所抵銷。我們全年調整後的自由現金流指引意味著下半年現金產生量約為 4.4 億美元，我們預計第三季和第四季將相對穩定。話雖如此，我把它轉回給吉奧。

Well, thank you very much, David. And a quick summary here as we go to slide 11. So I'm very pleased with our strong first half performance. The executional strength of Vertiv continues to improve, and we see that translating into our financial performance. Including sales growth, profitability and free cash flow. It gives us confidence to raise guidance again for 2024 and continues to strengthen our view on the next year.

嗯，非常感謝你，大衛。當我們轉到幻燈片 11 時，這裡有一個快速總結。 Vertiv 的執行力不斷提高，我們看到這轉化為我們的財務表現。包括銷售成長、獲利能力和自由現金流。這讓我們有信心再次提升 2024 年的指引，並持續強化我們對明年的看法。

The market is evolving and becoming more critical, and that plays into Vertiv's strengths very well. Technology, global scale, portfolio breadth, and depth services, these attributes matter to our customers. We stay humble and focused. Every day, we work hard to reinforce our competitive advantages. I said that on the last call, we fully intend to keep winning. We are in a good place now; we can always do better. There is absolutely no room for complacency. We are making substantial progress, but our full potential is much bigger and keeps growing, and the entire Vertiv team is very excited about this.

市場正在不斷發展並變得更加關鍵，這很好地發揮了 Vertiv 的優勢。技術、全球規模、產品組合廣度和深度服務，這些屬性對我們的客戶很重要。我們保持謙虛和專注。我們每天都在努力加強我們的競爭優勢。我在上次電話會議上說過，我們完全打算繼續贏球。我們現在處於一個很好的位置；我們總是可以做得更好。絕對沒有自滿的餘地。我們正在取得實質進展，但我們的全部潛力更大且不斷成長，整個 Vertiv 團隊對此感到非常興奮。

An important point on this slide, we plan to have an Investor event on November 18 in conjunction with the Supercomputing '24. So more details on this will follow, but I want to make sure that this is on your calendars and radar screens. With that, Brika, over to you and for the Q&A. Thank you very much.

這張投影片上的一個重要點是，我們計劃在 11 月 18 日與 Supercomputing '24 一起舉辦投資者活動。因此，更多詳細資訊將隨後發布，但我想確保這齣現在您的日曆和雷達螢幕上。 Brika，接下來就由您來進行問答。非常感謝。

(Operator Instructions) Amit Daryanani, Evercore ISI.

（操作員說明）Amit Daryanani，Evercore ISI。

Thanks a lot, and good morning, everyone. I'll stick to the one question rule. I'm wondering if you could just help us frame the order trajectory expected in September quarter. Will you help us understand maybe what's driving the deceleration in September to being 10% to 15% versus the high 50%, 60% we saw in the first half. And then crucially, just how do you see these orders converting to revenues over time for the company? It would be really helpful to frame that as well. Thank you.

非常感謝，大家早安。我會堅持一問一答的規則。我想知道您是否可以幫助我們制定九月季度的預期訂單軌跡。您能否幫助我們了解是什麼原因導致 9 月的減速幅度達到 10% 至 15%，而我們在上半年看到的減速幅度高達 50%、60%。然後至關重要的是，您如何看待這些訂單隨著時間的推移轉化為公司的收入？將其框架化也會非常有幫助。謝謝。

Thank you, Amit, and very good day to you. I think I stated at the end in the script, we are happy with the pipelines that we see. And those pipelines, of course, are reflecting a positive trajectory for the market and our overall view of the market continues to be positive.

謝謝你，阿米特，祝你有美好的一天。我想我在腳本的最後說過，我們對所看到的管道感到滿意。當然，這些管道反映了市場的積極軌跡，我們對市場的整體看法仍然是積極的。

If you go back to April, we had certainly a more prudent view of the Q2 orders, but there are a lot of big orders and individual [ bias ] in this market. And sometimes, it's just a question -- can be a question of timing when -- whether they happen in one quarter or another or another quarter. So overall, our view of the market it continues to be very positive, very, very positive. We're very happy about the trajectory of orders so far, but we are also aware of the fact that the timing can be an element here, all the timing. That's why we want to make sure that we do not just talk about orders in one quarter, but we took a little bit kind of a broader metric like the trailing 12 month that we have introduced now.

如果你回到四月份，我們對第二季的訂單肯定有更謹慎的看法，但這個市場有很多大訂單和個人[偏見]。有時，這只是一個問題 - 可能是時間問題 - 無論它們發生在一個季度、另一個季度還是另一個季度。總的來說，我們對市場的看法仍然非常正面、非常非常正面。到目前為止，我們對訂單的軌跡感到非常滿意，但我們也意​​識到，時機可能是這裡的一個因素，所有的時機。這就是為什麼我們要確保我們不僅僅談論一個季度的訂單，而是採用了更廣泛的指標，例如我們現在引入的過去 12 個月的訂單。

When it comes to the second half -- the second part of your question about order timing and translation in revenue. It's pretty much what we what we said last time already, for the upper part of the market, meaning that the larger part of the market, larger doses of the Cloud and Colocation. We are thinking now in terms of 12, 18 months on average, [indiscernible] individual leaders can have different dynamics. But on average, we think about an elongation that we already described last time around. And hence, considering Q2 and Q3, the majority of that will sit in future years, so 2025 and beyond. But again, nothing particularly strange or different than what we observed before already.

談到下半年，您問題的第二部分是關於訂單時間和收入轉換的。這幾乎就是我們上次所說的，對於市場的上部部分，這意味著市場的大部分，雲和託管的劑量更大。我們現在正在考慮平均 12、18 個月，[音訊不清晰]各個領導者可能會有不同的動態。但平均而言，我們會考慮上次已經描述過的伸長率。因此，考慮到第二季度和第三季度，其中大部分將發生在未來幾年，即 2025 年及以後。但同樣，與我們之前觀察到的情況相比，沒有什麼特別奇怪或不同的地方。

Thank you. We now have Steve Tusa with JPMorgan. You may proceed.

謝謝。現在，史蒂夫·圖薩 (Steve Tusa) 就職於摩根大通。您可以繼續。

Hi, good morning. Our stated, you mentioned the 30% to 35% trailing 12 months. Is that a good trend to think about here? You know, going forward, given how positive you are and any comments on, you know, how the pipeline is trending down year over year? And then just lastly, as a follow-up to that on orders, how do you book like campuses are like a phased order aware you may be working on three D buildings or something or three data centers in a certain CapEx and maybe contracted to do all of that. At what point do you actually book that orders are booked all at once or as these things as the shovel goes into the ground? Thanks for any color on all that,

早安.我們說過，您提到了過去 12 個月的 30% 到 35%。這是一個值得思考的好趨勢嗎？你知道，展望未來，考慮到你的積極態度以及對管道逐年下降趨勢的任何評論？最後，作為訂單的後續行動，您如何像園區一樣進行預訂，就像分階段訂單一樣，意識到您可能正在建造三座 D 型建築或某個設施或三個資料中心，並可能簽訂合約來做所有的。您實際上在什麼時候預訂訂單是一次性預訂的，還是當鏟子入地時預訂的？感謝所有這些的任何顏色，

but thank you for your question. So and certainly we call it 30, 35% on a trailing 12, a strong, a strong trajectory, and one that can sustain us the growth, the growth a long, long term. So we totally Leica like that range and a lot. And it's a range that reflects strength in the market for a full Vertiv.

但謝謝你的提問。因此，當然，我們將其稱為 30%、35%（在尾隨 12% 的基礎上），這是一條非常非常強勁的軌跡，能夠維持我們的成長，而且是長期的成長。所以我們非常喜歡徠卡的這個系列。這個系列反映了維諦 (Vertiv) 整車市場的實力。

To your question about how we book campuses, we have been vocal about the five very, very important to be in the first part of accomplish or development Delta as that capacity gets expanded over time. But the way we book is appeal by IPO'd. There's no other no other way we got to be, oh, we book IPO and we called an order only what is what is actually fully legally legally binding. So it really it's really about a week what what customers order actually from us thinking.

對於你關於我們如何預訂校園的問題，我們一直在直言不諱地說，隨著能力隨著時間的推移而擴大，進入完成或發展三角洲的第一部分非常非常重要。但我們預訂的方式是透過 IPO 來吸引的。我們別無選擇，哦，我們預訂了首次公開募股，我們只調用了真正具有完全法律約束力的命令。因此，我們實際上需要大約一周的時間來思考客戶實際訂購的內容。

We now have Nicole DeBlase with Deutsche Bank. You may proceed mechanics.

現在我們有德意志銀行的 Nicole DeBlase。您可以繼續進行機械操作。

Thank you. Good morning, guys. Ago. And so I want to spend some more time on orders just because I think this is a big investor concern and let's kind of infrastructure in the market today. So I guess the assumption that you get to 10% to 15% growth in the third quarter and players like a 20% step down sequentially, like what does that founded?

謝謝。早上好傢伙。前。所以我想花更多的時間在訂單上，因為我認為這是投資者的一個大問題，讓我們今天市場上的基礎設施。所以我猜假設第三季實現 10% 到 15% 的成長，而參與者喜歡連續下降 20%，這說明了什麼？

And are you guys just kind of making a conservative assumption that, hey, we've had a few quarters of really strong large project orders and that may not continue. And then are you actually seeing like large orders in the pipeline start to diminish because you've booked so many large orders? Just trying to get a sense as to how you come into that 10% to 15% growth year on year, if we could be sitting here three months from now with another party size from an order perspective. Thank you.

你們只是做了一個保守的假設，嘿，我們已經有幾季的非常強勁的大型專案訂單，而且這種情況可能不會持續下去。然後，您是否真的看到管道中的大訂單開始減少，因為您已經預訂瞭如此多的大訂單？只是想了解如何實現 10% 到 15% 的同比增長，如果我們可以從現在起三個月後坐在這裡，從訂單的角度來看另一個聚會規模。謝謝。

Well of a second question because certainly a little bit paradoxical to think that the concern is orders are a concern after after two quarters of almost 60% year on year. But but but I hear you, as I said, the pipeline continues to be to be strong.

那麼第二個問題，因為在兩個季度同比增長近 60% 之後，認為訂單是令人擔憂的問題肯定有點矛盾。但是但是但是我聽到你說的，正如我所說，管道仍然很強大。

And again, the pipe pipeline reflects pipeline reflects the dynamics of the market and a testament to a very strong visibility that we have in the market to commercially. And I'll just the way the way the way we understand the market. But again, the message there is no different than the message that we gave, if you will, a quarter ago.

同樣，管道管道反映了管道反映了市場的動態，並證明了我們在商業市場上擁有非常強的知名度。我將按照我們理解市場的方式來介紹。但同樣，如果你願意的話，這個消息與我們一個季度前發出的消息沒有什麼不同。

It's just that is, is that message with the with more good news on top of that is the good news is strengthen the second quarter actual orders. So I consider to be very, very optimistic about the way the market is evolving and our and our position in the market. We like the trajectory of of our pipelines.

只是，除此之外還有更多好消息，好消息是第二季實際訂單增加。因此，我認為對市場的發展方式以及我們在市場中的地位非常非常樂觀。我們喜歡管道的軌跡。

And we like also the way you pipelines are shaping shaping up in the rest of the world. Of course, we know that's very, very strong in the in the Americas. So A., I dynamics are playing in a favorable in a favorable manner.

我們也喜歡你們在世界其他地方塑造管道的方式。當然，我們知道這在美洲非常非常強大。所以A.，我的動力正在以有利的方式發揮作用。

That said, again, that is sometimes a receiving an order of the kind of first day of the quarter or last day of the quarter can can swing things around obsessed about the individual quarter. It is important. I know we're very proud about the what we printed in the second quarter, and let's make sure that we keep an eye on on the trajectory on the long-term trajectory. And the long-term trajectory is very strong.

話雖如此，有時收到季度第一天或季度最後一天的訂單可能會改變對單一季度的痴迷。這很重要。我知道我們對第二季的印刷結果感到非常自豪，讓我們確保密切關注長期軌跡。而且長期軌跡非常強勁。

Thank you. We now have Mark Kennedy with Goldman Sachs from the line.

謝謝。現在我們有來自高盛的馬克甘迺迪。

But yes, some good morning. Thanks for much for taking my question, which is on pricing and Vertiv have been expecting a bit more than 60 million of that price cost positivity for this year. Can you qualitatively on how the pricing environment has evolved? And are you seeing that pricing become any more competitive new programs that come up for bid given increased competition in certain parts of the industry? And if so, is that potentially eliminate the degree of price cost positivity over the longer term?

但是，是的，早上好。非常感謝您提出我的問題，這是關於定價的問題，Vertiv 預計今年的價格成本正值將超過 6000 萬美元。您能否定性地了解定價環境的演變？鑑於行業某些領域的競爭加劇，您是否認為新項目的定價變得更具競爭力？如果是這樣，從長遠來看，這是否有可能消除價格成本的正面程度？

Thank you. So we continue to operate in a market that is favorable from a demand and supply balance stent sales standpoint. And we have a very strong competitive advantages in in demand in the market. So we feel good about what we're doing. We feel very good about the pricing muscles and muscle and and pricing strength that we have built.

謝謝。因此，從支架銷售的角度來看，我們繼續在供需平衡的有利市場中運作。我們在市場需求方面擁有非常強的競爭優勢。所以我們對我們正在做的事情感覺很好。我們對我們建立的定價能力和定價實力感到非常滿意。

And over the last two, three years. So things continue to be encouraging in that respect. Of course, we operate in an environment that is a mature market. Our customers are sophisticated players. So we continue to be adamant about the fact that our our price cost equation will continue to be positive in the future. And we feel good about the about our position in the market and our ability to price the value that we deliver in terms of technology in terms of service level in terms have access to capacity to our customers.

而且在過去的兩三年。因此，在這方面，情況繼續令人鼓舞。當然，我們在一個成熟的市場環境中運作。我們的客戶都是經驗豐富的玩家。因此，我們繼續堅信我們的價格成本方程式未來將繼續為正值。我們對我們在市場中的地位以及我們對我們在技術方面提供的價值進行定價的能力感到滿意，在服務水平方面，在向客戶提供的能力方面。

Thank you very much. Your next question is from Andy Kaplowitz, Citi specifically.

非常感謝。您的下一個問題來自花旗銀行的安迪‧卡普洛維茨 (Andy Kaplowitz)。

Good morning, everyone. Hello, good morning. David, you talked about a lot to do a total of more about productivity. And so maybe Jim or David, you could talk a little bit more about the opportunities you see there. Is there any risk that you could lose any of this transition from as you continue to ramp in areas such as liquid cooling? And then if there is a lot of room on the productivity side, pricing still improving, you keep leveraging double digit revenue. Could you end up with a margin were higher than that 20% target you have for 26

大家，早安。你好早安。大衛，你談到了很多關於提高生產力的事情。也許吉姆或大衛，你可以多談談你在那裡看到的機會。當您繼續在液體冷卻等領域不斷發展時，是否存在可能失去任何這種轉變的風險？然後，如果生產力方面有很大的空間，定價仍在提高，那麼您將繼續利用兩位數的收入。您最終的利潤率能否高於 26 年 20% 的目標

I would I would say is essentially premature. We know that 20% has always been a 20% plus not necessarily the city. We are very happy about the trajectory we're on. We're on right now. But the played out and play, and we've been vocal about that forever. And so to the in in the introductory comments, comments here on the west from full potential.

我想說基本上還太早。我們知道，20%一直都是20%以上，不一定是城市。我們對目前的發展軌跡感到非常高興。我們現在就在進行。但事情已經過去了，我們一直對此直言不諱。因此，在介紹性評論中，我們對西方的評論充滿了潛力。

But when we when we look at the way, for example, liquid cooling is is ramping up the way. And at the top top line is is heading as reflected in the current guidance, et cetera, are all elements that play in favor of us being able to going to be more effective in achieving our our efficiency, leveraging volume, et cetera. So I'd say that productivity is a big element in our value equation of the

但是，當我們觀察這種方式時，例如，液體冷卻正在加速發展。最重要的是，正如當前指南等所反映的那樣，所有因素都有利於我們能夠更有效地實現我們的效率、利用數量等。所以我想說，生產力是我們價值方程式的重要因素。

So of course, but the but an important, an important one. And while we see happening in terms of business trajectory, but also internally, the improvements and the gains that we see being realized are encouraging in that direction. But again, we are certainly open operating the Company a much better. There is so much more we can do and that will be our forever mantra, no matter how strong we can be appreciate it.

當然，但是非常重要。雖然我們看到業務軌跡方面正在發生變化，但在內部也是如此，我們看到正在實現的改進和收益在這個方向上是令人鼓舞的。但話又說回來，我們公司的開放經營肯定好得多。我們可以做的還有很多，這將是我們永遠的座右銘，無論我們多麼強烈地欣賞它。

We now have Scott Davis with Melius Research.

現在我們有 Melius Research 的 Scott Davis。

Hey, good morning. Good morning to you devoted to swipe Henkel moratorium is devoted all side to service. Obviously, you think there's a lot of potential here. I guess my question is kind of was what is the key KPI or is it just can you price around kind of have guaranteed uptime as it is it just having fuel cell field service guys on slide 8, you can just price a price of that labor. I mean, how what is kind of the value to you guys on and to the customer, I guess, more explicitly?

嗨，早安。早安，您致力於刷卡漢高暫停致力於全方面的服務。顯然，您認為這裡有很大的潛力。我想我的問題是關鍵的 KPI 是什麼，或者您是否可以圍繞有保證的正常運行時間進行定價，因為幻燈片 8 上只有燃料電池現場服務人員，您可以為該勞動力定價。我的意思是，我想，更明確地說，對你們和客戶來說，價值是什麼？

I know that's a it's a kind of a big topic overall, but it wasn't 100% clear to me off the slide, but Tom, and then also just the potential, I mean, if you devote all side to include, I think it can be pretty material pretty, you know, I would assume by 2025. So anyway, I know there's a lot there. Just answer what you want. I'll pass it on thanks.

我知道這是一個整體上的大主題，但我在幻燈片上並不是 100% 清楚，但是湯姆，還有潛力，我的意思是，如果你全力以赴包括在內，我認為我假設到2025 年，它可能會變得非常物質。只回答你想要的。我會轉達的 謝謝

Yes, thank you. Insertion, certainly in a question that that would deserve a multifaceted conversational tried to go to what other that the key metrics here. I think there are two dimensions to that. one is for us have clearly and recurrent revenues and the important aspects having a large installed base and being able to attach to that installed base. So all things that we measure obsessively and we track and we and we make sure that we we operate very well from a commercial, but also kind of a delivery delivery standpoint.

是的，謝謝。插入，當然是在一個值得進行多方面對話的問題中，試圖討論這裡的關鍵指標之外的其他內容。我認為這有兩個維度。一是對我們來說有明確的經常性收入，重要的是擁有龐大的安裝基礎並且能夠依附於該安裝基礎。因此，我們痴迷地衡量和追蹤所有的事情，我們確保我們從商業角度和送貨角度來看運作良好。

So I call our service business quite mature, quite mature, very mature in that sense. And clearly with the with the current revenue with the with the attach rates, it's quite quite valuable, quite valuable set of revenue that that those levers for us in terms of productivity sorry into in terms of margins and profitability.

所以我稱我們的服務業務相當成熟，相當成熟，從這個意義上來說非常成熟。顯然，就目前的收入和附加費率而言，這是非常有價值的收入，這些槓桿對我們來說在生產力方面影響了利潤和獲利能力。

But there is another element of hub for for us that is a service being differentiator that makes a difference and plays a very important role in our market share product, Project Solutions, a market share, let's say, equation and and competitive advantages. So it is very, very important in that respect.

但對我們來說，中心還有另一個要素，那就是服務是差異化因素，它會產生影響，並在我們的市場份額產品、專案解決方案、市場份額等方面發揮著非常重要的作用，例如說方程式和競爭優勢。所以在這方面它非常非常重要。

And I as I mentioned, when we were going through the slides, the importance of service is enormous for our customers, and we are very proud of being able to support the industry with us.

正如我所提到的，當我們瀏覽幻燈片時，服務對我們的客戶來說非常重要，我們為能夠與我們一起支持該行業感到非常自豪。

The example that I made very, very, let's say, at a high level, obviously, given the time constraints when we were going through the slide is a I love fully $2 million write-back. That is that is a cap to a live issue, will buy a in a secondary could so-called liquid cooled and a circuit. And there is an inertia on that is in the second. So differently from the past when you would have an entire room helping if something goes wrong in the thermal system. So you have you'll see view and your to or multiple CAD2 million racks.

考慮到我們瀏覽投影片時的時間限制，我製作的例子非常非常高，顯然是一個我非常喜歡的 200 萬美元回寫。也就是說，這是一個即時問題的上限，將購買一個二次可以所謂的液體冷卻和一個電路。第二個方面存在慣性。與過去不同的是，如果熱系統出現問題，整個房間都會提供協助。因此，您將看到視圖和多個 200 萬加元的機架。

So you have to be able to see things before they happen and when you see something be able to intervene in seconds. So the value is really the utilization and the resilience of our customers' infrastructure is enormously important. There is an element as well. It is another element is enabling a deployment and especially as technology to become more complex as they are. Everything that is project commissioning, et cetera, is of an increasingly impactful importance.

因此，您必須能夠在事情發生之前看到它們，並且當您看到事情時能夠在幾秒鐘內進行幹預。因此，價值實際上是客戶基礎設施的利用率和彈性非常重要。還有一個元素。另一個因素是支援部署，尤其是隨著技術變得越來越複雜。專案調試等一切都具有越來越重要的影響力。

Thank you. Your next question comes from Michael Elias with TD Cowen. You may proceed.

謝謝。您的下一個問題來自 TD Cowen 的 Michael Elias。您可以繼續。

Great. Thanks for taking the questions. When I look at the underlying data center market, I see that supply and demand are meaningfully imbalanced. And when I take a look at spot and data center market price, and I think it's up about 20% year over year over the last few years than what I drill that down into the unlevered yields that data center operators are generating. I mean, they're seeing yield expansion and to the tune of 100 to 130 basis points year over year, which says to me that their returns are expanding faster than the cost to build and their cost of capital. So when we think through the price cost dynamic, converting

偉大的。感謝您提出問題。當我觀察基礎資料中心市場時，我發現供需明顯不平衡。當我查看現貨和資料中心市場價格時，我認為在過去幾年中，它比我深入了解資料中心營運商產生的無槓桿收益率的價格同比上漲了約 20%。我的意思是，他們看到了收益率的擴張，年復一年增長了 100 到 130 個基點，這對我來說，他們的回報增長速度快於建設成本和資本成本。因此，當我們考慮價格成本動態時，將

My question for you, as soon place grow linearly with the increase in underlying figure some spot market, given that that kind of price increase to the end customer would actually have no impact on the underlying returns. Just wanted to get a better sense of how to think about the relationship between data center price strength in your ability to place from a data point for us?

我想問你的問題是，鑑於對最終客戶的這種價格上漲實際上不會對基礎回報產生任何影響，一旦現貨市場的基礎數據增長，地方就會線性增長。只是想更了解如何考慮資料中心價格強度與您為我們提供資料點的能力之間的關係？

Well, I think it's really specific customer by customer and technology by technology. Different technology may have a different profile of and that's a supply and demand balances. So it's hard to it's hard to define a general rule here.

嗯，我認為這確實是針對不同客戶和不同技術的具體客戶。不同的技術可能有不同的概況，這就是供需平衡。所以很難在這裡定義一個一般規則。

Certainly what we what we see is the price isn't a market environment where vendors and especially a player like Vertiv with with strong value proposition, can can translate that into value to our customers and translate that into into enterprise now will have Cruiser.

當然，我們所看到的是，價格並不是一個市場環境，供應商，尤其是像Vertiv 這樣具有強大價值主張的參與者，可以將其轉化為我們客戶的價值，並將其轉化為現在將擁有Cruiser 的企業。

It does go through all the average value of your of your question and further reflect on that. But the but I'd say that we continue to operate in an environment that is that it was favorable, but with players that are certainly very savvy, especially large polos, the hyperscalers in there in the, let's say, a buy-in dynamics.

它確實遍歷了您問題的所有平均值並進一步反映了這一點。但我想說的是，我們繼續在一個有利的環境中運營，但玩家肯定非常精明，尤其是大型馬球，其中的超大規模者，比如說，買入動態。

Thank you. Your next question comes from Jeff Sprague with Vertical Research Partners.

謝謝。您的下一個問題來自垂直研究合作夥伴的 Jeff Sprague。

Good day, everyone. I'll split it, as I said, just maybe put a finer point on share and how you're measuring it. Obviously, there's a lot of concerns about competition. So he's heard before you're hearing on the call. But when they look at your order growth rate and the like, it doesn't appear to me there's a share issue, but you did mention you believe you're gaining share.

今天是個好日子。正如我所說，我將把它分開，只是可能會更詳細地闡述份額以及如何衡量它。顯然，人們對競爭有很多擔憂。所以在你聽到電話之前他就已經聽到了。但是，當他們查看您的訂單成長率等時，在我看來，似乎不存在份額問題，但您確實提到您相信自己正在獲得份額。

So I wonder if you could just tell us how you're measuring that. How fast do you think the market's growing? Are you thinking about the answer to this question in terms of dollars per megawatt or some other metric? And just help us get a little more comfortable with how your business is performing relative to the competitive set?

所以我想知道您是否可以告訴我們您是如何衡量這一點的。您認為市場成長速度有多快？您是否正在考慮以每兆瓦美元或其他一些指標來回答這個問題？只是幫助我們更了解您的企業相對於競爭對手的表現如何？

Certainly our our Well, thank you for your for your question. As I've said, first of all, and the certainly our trajectory is is encouraging from from the point of view, is that the from the point of view of the signals that it gives us in terms of our market share, there are parts of the market that are that are relatively new as well. There are parts of the markets that are quite quite mature in terms of having access to all the market information.

當然是我們的，謝謝您的提問。正如我所說，首先，從我們的市場份額來看，我們的發展軌跡無疑是令人鼓舞的，從它向我們發出的市場份額信號的角度來看，有一些部分也是相對較新的市場。部分市場在獲取所有市場資訊方面相當成熟。

So again, the answer the answer should be specific to to the technology. But in general, if we think about what we gave in November in terms of growth of the cloud, co-location on the in the 14%, 17%, of course, our orders are encouraging and market share is always something that is a little bit measured ex-post. But the trajectory we are on certainly suggests that that that the outlook is positive in the in that respect,

同樣，答案應該針對該技術。但總的來說，如果我們考慮 11 月雲端運算成長情況，主機託管在 14%、17% 之間，當然，我們的訂單令人鼓舞，市佔率始終是一個重要的指標。但我們所處的軌跡無疑地表明，在這方面前景是正面的，

you were asking as well about a dollars per megawatt and let's say, vision or thoughts right now at this stage, not very different from from what we shared with the with all of you in the past. So think and again, they may and into 2.539 AI. And three, three 5 million per megawatt of a mix TAM for that is in the AI. space or so. That's that is for us is still a valid evaluate, let's say, order of magnitude.

你們也詢問了每兆瓦一美元的價格，比如說，現階段的願景或想法，與我們過去與大家分享的沒有太大不同。這麼想再三，他們可能又變成2.539 AI了。三、三、每兆瓦 500 萬的混合 TAM 屬於人工智慧。空間左右。這對我們來說仍然是一個有效的評估，比如說，數量級。

Thank you. I would now like to hand it back key Jotun out, but chassis for some closing remarks.

謝謝。我現在想把它交還給佐敦鑰匙，但底盤要作一些結束語。

Yes, operator, I think we have time for a couple more questions. You might have to go ahead and take the I actually have a choice.

是的，接線生，我想我們還有時間再問幾個問題。你可能必須繼續選擇“我實際上有一個選擇”。

We now have Nigel Coe with Wolfe Research.

我們現在請來了沃爾夫研究中心的奈傑爾·科 (Nigel Coe)。

Thanks, Samita of drowning. Thanks. As always, so far have. Okay. Yes. So I would like to take Jeff's kind of line or so that definitely, obviously, I tend to agree with you to do that. You're funding capability. Service Network is a big advantage. The other side of the coin is you've got to buy much of your Asian server OEMs that are trying to integrate around the surface and that there was cities, et cetera. Maybe just talk about their ability to do that.

謝謝，溺水的薩米塔。謝謝。一如既往，到目前為止。好的。是的。所以我想採納傑夫的觀點，顯然，我傾向於同意你這樣做。你有資金能力。服務網絡是一大優勢。硬幣的另一面是，您必須購買大量亞洲伺服器 OEM，它們試圖在地面上進行集成，並且存在城市等。也許只是談論他們做到這一點的能力。

And maybe just maybe a bit more. So particularly, what sort of win rate are you seeing on liquid cooling right now? Quite a while now.

也許只是多一點。特別是，您現在看到液體冷卻的勝率是多少？已經有一段時間了。

And Nigel and um, um, again, as I mentioned, when we were going through the slides that I'm not just about having a widget, it's about having the ability having first of all very strong technology as we do, but then have in a very strong controls that are an important part of the liquid, especially see new direct to chip equation.

奈傑爾和嗯，嗯，正如我所提到的，當我們瀏覽幻燈片時，我不僅僅是擁有一個小部件，而是擁有首先像我們一樣擁有非常強大的技術的能力，然後擁有在非常在強大的控制中，這是液體的重要組成部分，尤其是看到新的直接晶片方程式。

I have in the direct manufacturing processes, their ability to scale and services. And clearly, we we always evaluate our competitors very, very seriously. But when you when you think about the system integrators or other players in that space, we should not necessarily look at them as necessarily competitors. Very often they play in hybrid will then they can be a route to market as well.

我在直接製造過程中擁有規模化和服務的能力。顯然，我們總是非常非常認真地評估我們的競爭對手。但是，當您考慮該領域的系統整合商或其他參與者時，我們不一定會將他們視為競爭對手。很多時候，他們會採取混合方式，然後他們也可以成為進入市場的途徑。

So things are a little bit more nuanced than they may appear at that as a first at first glance. So on when it comes to come to win rates will not go into details of the of the win rates at this stage. But I think it's important to say that we have very, very happy with a with a with the trajectory of orders and backlog that we have in the liquid cooling space.

因此，事情比乍看之下要微妙一些。所以說到勝率，現階段就不詳細介紹勝率了。但我認為重要的是，我們對液體冷卻領域的訂單和積壓訂單軌跡非常非常滿意。

Across across of Costa portfolio, but in particular in the city in the CDU space. Very, very, very, very happy. Yes, but I will not go into each of the day that at this stage.

橫跨 Costa 投資組合，但特別是在基民盟空間的城市。非常非常非常非常開心。是的，但現階段我不會詳細介紹每一天。

Thank you. As a reminder, if you'd like to ask any further questions, please press star followed by one on your telephone keypad. Now. Your next question comes from Noah Kaye with Oppenheimer Funds.

謝謝。提醒一下，如果您想詢問任何其他問題，請按電話鍵盤上的星號，然後再按一個。現在。您的下一個問題來自奧本海默基金的諾亞·凱伊。

Thank you. So so with enterprise on from migration of workloads to the cloud, perhaps getting into a little bit more of a new equilibrium here, you mentioned an uptick in the outlook for for enterprise in the Americas. Year. To what extent was that contemplated in the sort of 3% to 5% outlook you gave at the November Investor Day, could potentially be seeing growth starting to pickup versus that rate? And is that something that you're seeing in the pipeline currently?

謝謝。因此，隨著企業從工作負載遷移到雲，也許在這裡進入了更多的新平衡，您提到了美洲企業前景的改善。年。您在 11 月投資者日給出的 3% 至 5% 的前景中考慮到的情況在多大程度上可能會看到成長開始加速？您目前正在計劃中看到這種情況嗎？

Well, thanks for the question was up a good point in the sense that when we talked about that three to five, 3% to 5% were saying that that may be she will augment and expand its expanded by the the implications of AISAI. matures and becomes more edibles and not just element on carbon and Cola. So I'd say that it's early stage, but we gave a different color for a full reason.

嗯，謝謝你提出的問題，從某種意義上說，當我們談到三到五時，3% 到 5% 的人說，她可能會透過 AISAI 的影響力來擴大和擴大其範圍。成熟後變得更加可食用，而不僅僅是碳和可樂中的元素。所以我想說現在還處於早期階段，但我們給了不同的顏色是有充分理由的。

And on slide 4, I think it was and it is exactly that the pipeline start to indicate that things may be better in the enterprise part of the market than than we had in our November. Motor book is yet a little bit premature to we think aspects of them of the model, but something we can to we do constantly Murata. But yes, we see positivity in the pipeline and certainly in the direction of faster growth in enterprise than originally originally expected. Thanks, Keith.

在投影片 4 上，我認為確實如此，而且正是管道開始表明市場的企業部分的情況可能比 11 月更好。電機書籍對於我們思考模型的各個方面還為時過早，但村田可以不斷做一些事情。但是，是的，我們看到了積極的一面，而且肯定是企業的成長速度比最初預期的更快。謝謝，基斯。

Now has Steve Tusa with JPMorgan.

現在史蒂夫·圖薩 (Steve Tusa) 就職於摩根大通。

Hey, thanks for taking the follow-up question on cash, seasonally, you guys usually kind of flat and from the second third and then up nicely in the fourth. I know that there's some timing on downpayments involved with the contract. Our deferred revenue, however, you want to call it. Are you what why I think I'm not expecting that this year as their pumps and timing around that?

嘿，感謝您提出有關現金的後續問題，從季節性角度來看，您通常會持平，從第二個三分之一開始，然後在第四個賽季中表現良好。我知道合約中涉及預付款有一些時間安排。然而，我們的遞延收入，你想稱之為。你是我認為我不期待今年他們的泵和時間安排的原因嗎？

Yes. I think there's time if you look at our advanced payments and you can look at the deferred revenue line in the balance sheet, that was up 150 million in Q2 and not surprising based on the the quantum of the orders we had in Q2. So effectively, that's a prepayment and term that would impact the cash flow timing going forward.

是的。我認為，如果你看看我們的預付款，你可以看看資產負債表中的遞延收入線，第二季增加了 1.5 億，根據我們第二季的訂單數量，這並不奇怪。因此，實際上，這是一項預付款和期限，將影響未來的現金流時間。

So I think I mentioned, yes, we would expect about 400, $40 million for the rest of the year, and that should be pretty uniform. But similar to orders? Yes, there is no amount of timing and lumpiness, especially with some of these advanced payments. But I think we're comfortable with the 20 to 20 for Q3, Q4 and keep.

所以我想我提到過，是的，我們預計今年剩餘時間的收入約為 400、4000 萬美元，這應該是相當一致的。但類似訂單？是的，沒有任何時間表和混亂，尤其是其中一些預付款。但我認為我們對第三季、第四季的 20 到 20 倍感到滿意，並保持不變。

Your next question comes from Nigel Coe with Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Nigel Coe。

Thanks for taking my follow-up. I just wanted to talk about the margins and A-Pac May May, and it's good to see a few of the Americas and EMEA having this competition. Just wondering when a patient to get involved in this competition. So we as we see the inflection in A-Pac coming through what kind of incremental margin should we expect as we go for the next couple of years.

感謝您接受我的跟進。我只是想談談利潤率和亞太地區五月五月，很高興看到一些美洲和歐洲、中東和非洲地區開展這場競爭。只是想知道什麼時候有病人能參加這個比賽。因此，我們看到亞太地區的變化將透過我們預計未來幾年的增量利潤率來實現。

Yes, I think if you look at A-Pac, they're probably not going to be an active participant in the regional high and there are some market differences there and notably with China. But come if you look on a year-to-date basis, even though they are down in Q2 and versus prior year and some of that driven by the onetime expense.

是的，我認為如果你看看亞太地區，他們可能不會成為區域高點的積極參與者，而且那裡存在一些市場差異，尤其是與中國的市場差異。但如果你看看今年迄今為止的情況，即使它們在第二季度和去年相比有所下降，而且其中一些是由一次性費用驅動的。

But on a year-to-date basis, there's still 100 basis points higher than they were last year. We think that some year over year of variance will expand in the second half and BOSS principles work in A-Pac just like they do come in in the Americas in Amea.

但從年初至今來看，仍比去年高出 100 個基點。我們認為下半年差異將會擴大，BOSS 原則在 A-Pac 中發揮作用，就像它們在美洲的 Amea 中發揮作用一樣。

So we are doing the same things in A-Pac as we are different in the rest of the in the world. And even though from a relative basis may be a step below a pack in America, we expect the expansion of operating margins in A-Pac for the rest of the year and also going toward.

因此，我們在亞太地區做著同樣的事情，但在世界其他地方卻有所不同。儘管從相對基礎來看，亞太地區的營運利潤率可能低於美國，但我們預計亞太地區的營運利潤率在今年剩餘時間內將會擴大，並且還將繼續擴大。

Thank you. Our final question comes from Brett Linzey with Commissioner. You may proceed.

謝謝。我們的最後一個問題來自專員布雷特·林澤 (Brett Linzey)。您可以繼續。

Thanks. Because everyone is saying, though is in the slice managing a timing constraints around construction of power availability. I guess is there a way to dimension how much of the current backlog is permitted resource ready to break ground versus the portion that might be a little bit more data uncertain? I'm just trying to get a better sense for the visibility into next year.

謝謝。因為每個人都在說，儘管在切片中管理圍繞電力可用性建設的時間限制。我想有沒有一種方法可以確定目前積壓的資源有多少是允許破土動工的，而數據不確定的部分又是多少？我只是想更了解明年的情況。

Just I'm well thanks for your question. When we talk about some permitting and power constraints, we talk about in general the industry as a whole on. So it's not something I'm missing today is applicable to our backlog.

只是我很好，謝謝你的提問。當我們談論一些許可和權力限制時，我們通常談論的是整個行業。所以我今天缺少的東西並不適用於我們的積壓工作。

We believe that while we have in backlog, Doug, reflecting our customers requested delivery dates already accounts for all those aspects on I know it could be a little bit about adjusting and exactly when when when a given site is ready, but nothing unusual, nothing different than what has happened in the industry for four years or so.

我們相信，雖然我們有積壓，道格，反映我們客戶要求的交貨日期已經考慮了所有這些方面，我知道這可能需要一些調整，以及具體何時給定站點準備好，但沒有什麼不尋常的，沒有什麼與該行業四年左右發生的情況不同。

We go back to some of the expectations in the market for growth. I am very, very strong, very, very strong double-digit growth in industry and infrastructure in in general, we said, and we said that already in our November investor day and say, hey, guys, there are any I can say, aspects that are influencing factors that are that are reducing this exuberance to levels of market growth.

我們回到市場對成長的一些預期。我們說，我在工業和基礎設施方面總體上非常非常強勁，非常非常強勁的兩位數增長，我們已經在 11 月份的投資者日說過，嘿，夥計們，我可以說，這些方面是影響因素，這些因素正在將這種繁榮降低到市場成長水準。

That again, going back to what we were saying in the cloud and colocation is already, let's say, 15, 16, 17% kegger. So growth rates that a very, very, very respectable in in many, many respects. But I know my comment was not did not have and to do with with our backlog. Our backlog is based on the on the requested delivery dates that we get on on the PO. that we received from from our customers. And it could be meaningful adjustment depending on the on the needs, hopefully addressing your question and concern.

再說一遍，回到我們在雲端所說的，託管已經是 15%、16%、17% 了。因此，成長率在許多方面都非常非常令人尊敬。但我知道我的評論並不是沒有，而是與我們的積壓有關。我們的積壓訂單是根據採購訂單上要求的交貨日期。我們從客戶收到的。根據需要，這可能是有意義的調整，希望能解決您的問題和擔憂。

Thank you. This does conclude our question-and-answer session. I would like to turn the conference back over to Hugh O'Donnell appetite for any closing remarks.

謝謝。我們的問答環節到此結束。我想把會議轉回給休·奧唐納（Hugh O'Donnell）做閉幕詞。

Well valued and thank you, rank the thanks, everyone, for joining us today. Big. Thank you for for your questions. And I'd first and foremost, I'd like to thank the Vertiv team for for another quarter of strong performance. So really appreciate everyone's support and and have a great rest of your day to day. Thank you.

非常感謝，感謝大家今天加入我們。大的。感謝您的提問。首先，我要感謝 Vertiv 團隊在另一個季度的強勁表現。非常感謝大家的支持，祝您每天都能好好休息。謝謝。

The conference call has now concluded. Thank you for attending the presentation. You may now disconnect.

電話會議現已結束。感謝您參加演示會。您現在可以斷開連線。