Morning. My name is Nick. I will be your conference operator today. At this time, I'd like to welcome everyone to Vertiv's fourth quarter 2020 earnings conference call. All lines have been placed on mute to prevent any background noise. Please note that this event is being recorded. Now I'd like to turn the program over to your host for today's conference call, Lynne Maxeiner, Vice President of Investor Relations. Great. Thank you, Nick. Good morning, and welcome to Vertiv's fourth quarter 2020 earnings conference call. 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. Before we begin, I 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 registration statement, our proxy statement, and other filings with the SEC. 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. 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 investors slide deck found on our website at investors.vertiv.com. With that, I'll turn the call over to Executive Chairman, David Cote. Thanks, Lynne. As I reflect on the past year with Vertiv, I'm even more encouraged that everything we discussed in the roadshow has been proved to be even more true today. Vertiv has a great position in a good industry, and we can differentiate with technology. Sales growth and margin rate expansion opportunity abounds, and we have a team that's making it happen. That opportunity shone brightly in 2020. We were able to hold sales flat and significantly increase orders in a terribly difficult year. We were able to increase our margin rate on flat sales, which is always difficult. At the same time, we ramped up investment in R&D, other growth drivers, and process initiatives like the Vertiv Operating System, Vertiv Product Development, Functional Transformation, and Vertiv VUE, the Vertiv User Experience. The same is true for 2021. As Vertiv guides to sales growth, margin rate expansion, and the reinvestment that drives both in 2022 and beyond. Cash and overall liquidity improved markedly, and net leverage is down a lot more than anticipated, especially in a COVID year. My confidence has increased, not decreased, over the past year. No matter where I look in Vertiv, we're making great progress. As Timbuk 3 said in their 1986 song, "The future's so bright, we gotta wear shade." I felt that way a year ago, and I feel that way even more so today. With that, I'll turn the call over to Rob. Thank you, Dave, and I truly appreciate your partnership and the good advice you continue to provide to me and my executive leadership team. I also want to thank the Vertiv employees for their efforts in Q4 and throughout last year. They pulled together and demonstrated how our collective efforts can accomplish amazing feats during a very challenging time. They've adopted to a can-do attitude, used creativity, ingenuity, and outside-the-box thinking in order to serve our customers during this pandemic. I commend my team, my board, and our many partners for delivering the results I will share with you today. Moving to slide three. Overall, the demand side of our business was very promising, as Q4 sales were up over 11% compared to Q4 2019, driven largely by significant growth in the European and Asia Pacific regions. Orders for the quarter were up 9% when compared to the fourth quarter of last year. I'm pleased to remind you that the orders for Q3 were already up 15% as compared to Q3 of the previous year. Our backlog remains at an all-time high and is up $450 million from the end of 2019. We will talk more specifically about the demand side of the business over the next few slides. From a profitability standpoint, our adjusted EBITDA was $187 million, which was up over 25% from last year's Q4. This resulted in adjusted EBITDA margin expansion of 160 basis points, driven higher by sales, higher contribution margin, and lower fixed costs on a percentage basis. Additionally, our free cash flow at the end of Q4 improved over the same time period last year by $86 million- $175 million because of higher earnings and lower transformation spending. Turning to the full-year results of 2020. We delivered $39 million more in adjusted EBITDA as compared to 2019, with sales down approximately 1%. This equates to 110 basis point improvement in adjusted EBITDA margin versus the prior year. Our free cash flow improved $171 million over last year to $163 million, driven primarily by higher adjusted EBITDA and lower cash interest. Looking at 2021, we anticipate above-market top-line growth Increase in profitability, an even stronger balance sheet, all while continuing to invest significantly in strategic areas like research and development and sales and marketing. Finally, I wanted to let you know that we have transitioned the measure of profitability from adjusted EBITDA to adjusted operating profit. While there are a few moving parts associated with this transition, this is nothing more than continuing on our committed path to keeping our financials and communications as simple as possible. In order to aid analysts with this transition, we've included Exhibit 99.2 in our 8-K that reconciles all the pertinent information. David will speak to this further during his section as well. Turning to slide four. We've used this slide over the past few quarters to illustrate what we are seeing in our market environment regarding demand. It's been updated here to reflect how things look today. In the cloud and colocation market, we continue to see strong levels of activity in every region, as indicated by the six green buttons in the top two rows. Emerging digital applications such as online education, telemedicine, video, and gaming are benefiting our cloud and colocation customers, and that demand benefits us as well. In contrast, we see the enterprise and small to medium business continuing to be challenged by COVID, as indicated by the red and yellow buttons in row three. Its spending continues to be mixed. We commented last quarter that this segment was slightly more positive in October than it was in July, and it's slightly better today than it was in October. The change is subtle, but it is trending in the right direction. Switching to the telecom side of things. We see little change from last quarter. We are seeing an uptick of 5G deployments in U.S. and parts of Asia. Several of our larger U.S. carriers are continuing to roll out 5G, and we expect the rollout to continue for several more quarters. Our commercial and industrial business often tracks GDP, but sometimes the quarterly timing can be different. There was a positive movement in a few light commercial industrial applications over the past few months. The most notable changes we are seeing are taking place in Europe. Certainly some puts and takes, but overall a strong market picture given our mix of the data center business. The digital applications people use every day continue to become more and more important to daily living as a result of demand increasing for those digital applications so they can be processed, stored, and transmitted. Moving to slide five. To reiterate, the overall demand is strong, as evidenced by our order rates and backlog. Each of our world regions saw orders grow between 2019 and 2020, which was led by strength of the cloud and colocation markets. As I mentioned in the prior chart, the enterprise and IT channel markets are still not back to pre-COVID levels, but they are moving in the right direction. The IT channel momentum is evidenced by our integrated rack solutions revenue having increased every quarter during 2020, and we are confident about our position in the market for 2021 and beyond. Switching to the supply side. Now, I'm pleased to report that most of our manufacturing facilities allowed us to continue to operate in a relatively normal state amid the disruptions caused by COVID. Sometimes those disruptions are daily. Although we've seen a strong appetite in the broader market for some of the components we use to manufacture our products, I'm proud of how we have diversified our logistics and supply chains globally to mitigate any serious consequences. With that, I'll turn it over to David Fallon to walk us through the financials. David? Thanks, Rob. Starting with slide six. This page summarizes our fourth quarter financial results versus last year. Net sales were up $134 million, or 11.4%, 9.5% when adjusted for a $22 million foreign exchange translation tailwind. We continued our strong momentum with orders, which were up 9% in the fourth quarter after increasing 15% in the third quarter. Adjusted EBITDA increased $38 million, or 26%, primarily driven by the flow-through from higher sales and slightly offset by a foreign currency transaction loss, translating into a 160 basis point improvement in Adjusted EBITDA margin. Our sales and profitability performance converted into strong free cash flow of $175 million, $86 million higher than last year's fourth quarter. We will review some of the drivers of this improved free cash flow in a couple of slides. Turning to slide seven. This slide summarizes our fourth quarter segment results. Net sales in the Americas were up $3 million, or 0.6%, as growth in telecom was offset by lower services sales, which continued to be negatively impacted by COVID site access issues. Net sales in APAC increased $70 million, or 19%, primarily due to continued strong growth in China across most end markets, including data centers, telecommunications, and industrials. Geographic locations outside China in APAC were up slightly as we continued to deal with site access challenges in some of those jurisdictions. Net sales in EMEA were up $60 million, or 25%, almost entirely in the Critical Infrastructure and Solutions product segment, driven by several larger colocation projects. From a profitability perspective, adjusted EBITDA margin improved in both the Americas and EMEA, notably in EMEA, where margin increased over 600 basis points from last year's fourth quarter. This improvement was driven by both higher contribution margin and sales leverage on relatively flat year-over-year fixed costs. Higher contribution margin was primarily due to continued operational and procurement improvements, despite a slight negative mix impact from larger projects. The EMEA adjusted EBITDA margin has improved sequentially each quarter in 2020, reflecting the benefits of past transformational spending, the launch of the Vertiv Operating System, of course, the leverage benefits of growing the top line while holding fixed costs constant. Turning to slide eight. This chart bridges fourth quarter free cash flow from last year. The $86 million increase is primarily a result of higher adjusted EBITDA, lower cash interest payments, and lower transformational spending. The $175 million of free cash flow in the quarter was higher than our internal expectations, primarily driven by the timing of cash collections at the end of December versus early January. After beginning 2020 with the use of cash in the first quarter of approximately $200 million, we generated $366 million of free cash flow over the last three quarters, indicative of the strong cash generation potential of this business. This free cash flow has allowed us to pay down our ABL completely, and in conjunction with the $157 million of cash we received pursuant to the redemption of the public warrants prior to year-end, we increased our liquidity to $964 million at 12/31. Assisted by additional cash received in January from the warrant redemption, approximately $100 million, liquidity currently stands close to $1.1 billion, up from $446 million at the end of the first quarter. Next, turning to page nine. This slide summarizes our full year financial results. Net sales were down $60 million or 1.4% from 2019, as higher sales in EMEA and APAC were more than offset by lower sales in the Americas, which was more significantly impacted by COVID site access challenges than the other two regions. When looking at our full year sales result, it is instructive to bifurcate the year-over-year comparison. Sales were down 13% in the first half of 2020, but up 10% in the second half, in part driven by more challenging comps in the first half of 2019, but also demonstrating the rebound from COVID challenges and the continued resilient growth in our industry. Despite lower full year sales, adjusted EBITDA increased $39 million or 7%, and adjusted EBITDA margin improved 110 basis points as procurement and pricing initiatives drove contribution margin improvement. Fixed costs were down $40 million, aided in part by COVID cost saving actions launched in the second quarter. Finally, on this page, and this is the money chart, free cash flow improved $171 million from 2019 as we benefited from lower cash interest payments, higher adjusted EBITDA, and lower transformation spending. Beginning on page 10, we pivot to looking forward, including with this slide, which discusses our transition to adjusted operating profit as our primary financial metric rather than adjusted EBITDA. For avoidance of doubt, we will not be reporting adjusted EBITDA going forward. We defined adjusted operating profit as operating profit excluding the impact of intangible amortization expense. Operating profit is a GAAP financial measure that will be included on the face of our income statement, and we show an example on the next slide. With the only adjustments to operating profit both prospectively and for historical periods being intangible amortization, which we will also include on the face of our income statement. We believe using adjusted operating profit will greatly simplify our communication and analysis of financial results with analysts and investors. By eliminating all adjustments other than intangible amortization, we address all components of GAAP financial results, enhance the quality of earnings, and we also, of course, eliminate the previously disclosed historical adjustments. At the bottom of slide 10, we provide a reconciliation of adjusted EBITDA to operating profit and then to adjusted operating profit. As you can see, net the differences between adjusted EBITDA and adjusted operating profit are the historical add-backs, and also other one-time adjustments and depreciation expense. Adjusted operating profit is simply operating profit less the impact of intangible amortization. Last item of note on this slide, we will also be restating our historically reported adjusted earnings per share to remove historical adjustments except intangible amortization, and we include those reconciliations on pages 26 and 27 in the appendix. Moving to slide 11. This slide illustrates changes in our GAAP income statement presentation going forward, which facilitates our transition to adjusted operating profit. Once again, we will specifically include operating profit, a GAAP measure, on the face of the income statement, and we will also include components of the previously used other deductions net, including amortization of intangibles. A reader will easily be able to calculate adjusted operating profit for any future or historical period with items included on the face of the income statement. As Rob mentioned, to aid analysts and investors with this transition, which we hope is a once every 10 or 15 year transition, we have included exhibit 99.2 to our earnings release 8-K, which includes restatements for historical periods, including quarters consistent with this presentation. It also includes revised regional segment information, including reconciliations from historical adjusted EBITDA to adjusted operating profit, and quarterly and full year reconciliations from historically reported adjusted earnings per share to the prospective calculation removing historical adjustments. As always, Lynne Maxeiner, our VP of Investor Relations, and I will both be available for any assistance in understanding and facilitating this transition. Next, turning to slide 12. This page summarizes our current financial guidance for 2021. We expect the momentum from the second half of 2020 to continue into 2021, with organic net sales up 7% at the midpoint. We project adjusted operating profit of $575 million at the midpoint, up 68% from prior year and up 26% when pro forma-ed for 2020 discrete items, as we illustrate on slide 13. Adjusted operating margin is expected to be approximately 12% at the midpoint, up 420 basis points from 2020 and up 160 basis points on a pro forma basis. Of course, analysts, investors, and we internally will have to recalibrate margin improvement goals on a relative basis using adjusted operating profit as opposed to adjusted EBITDA, with adjusted operating margin for 2021 about 180 basis points lower than the comparable adjusted EBITDA margin. Of course, the magnitude and substance of our long-term margin improvement goals are unchanged. We expect 2021 adjusted earnings per share of $1.04 at the midpoint, with disclosure of assumptions included on slide 28 in the appendix. Finally, on this slide, we currently expect strong 2020 free cash flow of $285 million at the midpoint, up approximately $120 million from 2020. We will provide additional detail on this improvement on slide 14 coming up. Next, slide 13. This slide illustrates our bridge from 2020 adjusted operating profit of $342 million to projected midpoint 2021 adjusted operating profit guidance of $575 million, growth of approximately 68%. To the far left in the bridge, we pro forma 2020 adjusted operating profit for two discrete items, $92 million for the 2020 transaction cost in the first quarter of 2020. Compared to the resulting $456 million 2020 pro forma figure, we project operating improvement in 2021 of about 26%. Components of this operational increase are illustrated in the bridge and include the following anticipated favorable drivers. Higher sales volume, continued contribution margin expansion from procurement pricing and VOS initiatives, and net benefit from restructuring of approximately $20 million, including $40 million lower cost from the 2020 restructuring program, offset by $20 million of additional restructuring and related project expense in 2021. These tailwinds are offset by higher anticipated fixed costs, as we discussed in our third quarter earnings conference call, including additional investment of $65 million for R&D and growth initiatives and an anticipated $40 million impact from various one-time COVID cost-saving actions in 2020 that don't repeat. We normally do not spend significant time explaining an other bar, but in this case, there are quite a few variances going each way included in the other bar on this bridge. Tailwinds include $26 million of the FX transaction loss from 2020 and $40 million of cost savings that we expect in 2021, not related specifically to the 2020 restructuring program. Headwinds. Offsetting headwinds include a $30 million negative foreign exchange impact on fixed costs, $25 million for global merit increases, and $11 million of additional depreciation expense. Of particular note, the $51 million of historical add-backs from 2020 which included $13 million for stock compensation expense and $38 million for transformation-related adjustments as detailed on slide 19 in the appendix, is almost entirely offset by a combined $50 million of anticipated expense in 2021, equally split between stock compensation expense and continuing IT project implementation costs. Transitioning to slide 14. We include a bridge for the $122 million projected increase in free cash flow from 2020- 2021. We expect this increase will primarily be driven by higher adjusted operating profit and lower cash interest payments. These positive drivers will be partially offset by certain headwinds, including 2021 restructuring payments pursuant to the 2020 program, higher CapEx due to delayed 2020 projects, and anticipated investment in operational restructuring. Cash taxes are projected to increase due to expected higher profitability in several foreign jurisdictions. Our expected 2021 free cash flow will be somewhat normalized, except for the higher cash requirements for restructuring, and CapEx is likely slightly elevated due to the push from 2020 projects and incremental spend from the operational restructuring. Finally for me, slide 15. This slide summarizes our financial guidance for the first quarter, traditionally our lowest sales and profitability quarter, and typically a quarter where we use cash. Before diving into numbers, as a reminder, relative to other quarters, last year's first quarter sales and adjusted operating profit were most significantly negatively impacted by COVID, notably in APAC. Even though it is challenging to specifically quantify the exact year-over-year COVID impact, since COVID still presents headwinds in parts of our business today, clearly last year's first quarter is the easiest comp of the four quarters. With that in mind, we expect 13% organic growth from the first quarter of last year. Our adjusted operating profit is projected to increase $55 million at the midpoint, and adjusted operating margin is expected to increase approximately 500 basis points. Adjusted earnings per share is expected to be approximately $0.11 at the midpoint, up $0.76 from last year's first quarter. This year-over-year quarterly earnings per share increase includes a $0.54 benefit from two discrete items in the first quarter, including the $174 million loss on extinguishment of debt and $21 million of SPAC transaction costs. In addition, interest expense in this year's first quarter is expected to be $45 million lower than the first quarter of 2019, driving an additional $0.13 per share adjusted EPS benefit. A year-over-year benefit that does not repeat as significantly over the remaining three quarters due to the timing of the SPAC transaction and debt refinancing last year. With that said, I turn it back over to Rob. Thanks, David. Turning to slide 16, I wanted to provide some color on the key themes and initiatives we shared with you on our earnings calls over the past year. First, our focus is on the top line. We continue to strengthen all of our customer relationships, but especially with providers in the cloud and colocation space. Doing so has led to order increases in 2020. While large projects with cloud and colocation customers will always ebb and flow, we are gaining greater visibility into the future needs of our customers, which will translate into our ability to meet future demand and win projects down the road. Furthermore, we continue to hone our go-to-market efforts in the IT channel area. We saw the greatest traction occur in the U.S., and the impact got stronger as the year went on. Secondly, we are piloting the Vertiv Operating System, known as VOS, in two of our manufacturing facilities. Already, we are experiencing improved performance and favorable results as we formalize and standardize the way we work. The rollout globally, as we've said, will take time, but I'm pleased with the early results that we're seeing. David talked about margin expansion in his comments, and I'm very pleased with our performance in this area. Our sourcing capabilities have continued to improve. Our pricing initiatives have continued to yield favorable results. Our restructuring actions announced last quarter are now in full flight. The foundation we have established and the trajectory that we are on gives me confidence in our ability to achieve the expansion plans we laid out a year ago. Finally, and maybe my personal favorite, VPD, our Vertiv Product Development progress. We continue to focus and fund our R&D programs. Even though we couldn't or had limited travel in 2020 imposed because of COVID, we still conducted the Vertiv User Experience, VUE, sessions to bring us closer to our customers and help us become more stronger strategic partners for the long term. We have seen the pace of new product and service introductions increase year-over-year, in 2021 there'll be no difference. In addition to these real-time results, we have also started to do some seed planting in a few future targeted areas to ensure we continue to be on the cutting edge in our industry. Turning to slide 17. I'm very proud of the Vertiv team and what we've accomplished over the last 12 months. We delivered on our commitments. We demonstrated we are a great company in a growing industry. We have executed on many key activities and implemented many strategic initiatives, which will serve us both well in the short term and in the long term. To all of our employees on the call today, thank you for the dedication and tireless effort to take care of our customers. To all of our investors, thank you for your support over the past year and being with us on today's call. I'll now turn the call over to the operator, who will open up the line for questions. Thank you. We'll now begin the question and answer session. In order to ask a question, press star, then the number one on your telephone keypad. We'll pause for just a moment to compile the Q&A. First question comes from Jeff Sprague of Vertical Research. Thank you. Good morning, everyone. Yeah, I think the change in the reporting actually will be positive over time and simplify things. I think a fair amount of confusion here this morning, from what I can tell, you bridged to something pretty close to where consensus was. Thanks for all the restates. I wanted to talk about the normalization of cash flow a little bit, if we could. I understand there's some pressure here in 2021 as you lay out in the bridge. We end up with free cash flow in 2021 that's on the low side relative to adjusted EPS or EBITDA or revenues. I just wonder your view, if you could give any context on, once we work our way through 2021 here, some of these items normalize, how you would frame up the ongoing free cash flow picture. Thanks, Jeff. This is David, and thanks for the feedback. I would point out two things in 2020 cash flow that are somewhat anomalistic. The first and most significant is the cash required for restructuring. We had anticipated to have approximately a $60 million cash outlay in 2021 for restructuring programs. Our current estimate is closer to $70 million, and $50 million of that is embedded in the restructuring cash payments bridge item on slide 14. We have another $10 million- $20 million included in adjusted operating profit for 2021 projects. That's about a $70 million cash outflow. We'll always have some outflow for restructuring from a cash basis, that's probably high by a good $50 million. The other item I'd point out is CapEx. I think historically we've kind of provided go-forward direction of CapEx in the $75 million range. We're guiding to $95 million next year. A lot of good projects are included in that $95 million, but it also includes some projects that were pushed from 2020. If I were doing a model, I probably would include $95 million going forward, but I would include more than $75 million. My guess is that we will settle in right around $85 million. All the other items, including cash interest, if anything, that should decline going forward. Cash taxes probably will increase. Working capital is one item that we still have a lot of work to do, and we see some opportunity going forward. Other than restructuring and CapEx, I would say 2021 is somewhat normalized. Great. Thanks for that. Just one other one from me, and I'll pass it on. On the enterprise-related activity and, I guess the small signs of some additional life that you commented on, can you provide any additional color on your visibility there? Can you see a pipeline developing and kind of bid and proposal activity? Just wonder if you could put a little bit of firmer point on that for us, how you expect to see it play out. Sure. Hi, this is Rob. What I’d say is, we always talk to the fact that we take a look at our pipeline growth. That’s always the leading indicator, even that is pre-activity on quoting, as you mentioned, which is exactly that. We’ve seen pipeline expand exiting out of 2020, that gives us some comfort that the enterprise will begin to recover. Activity is intense in the design area with both electrical and mechanical contractors. Again, that gives me reason to believe that we will see that recovery. It’s just a matter of if and when, not if, but when people get out of this COVID thought and start spending again. The activity looks good and gives me confidence. That’s globally. We've seen probably a quicker recovery on the enterprise in, let's say, Asia and Europe is spotty, and then Americas has probably been the slowest. Overall, the pipeline looks good, and the activity is we're very active there. Great. Thank you. Your next question comes from Nicole DeBlase of Deutsche Bank. Yeah, thanks. Good morning, guys. Good morning, Nicole. Maybe we can start with the outlook, thinking about normalizing towards contribution margins beyond 2022. There's obviously still quite a bit of noise here in 2021. When you think about sustainable levels of restructuring in this business, are you guys going to be factoring in $20 million or so a year on an ongoing basis? I guess, similarly, is R&D kind of getting to the point where you're reaching your medium-term run rate, or do you think that there still needs to be a step up in R&D beyond 2021? Thanks, Nicole. This is David. I'll certainly address the restructuring question, and I'll ask Rob to address R&D. Our plan at this point, especially as it relates to the Vertiv Operating System, is related to continuous improvement. Whether you can equate that to continuous restructuring, I think that's probably semantical. We will continue to invest dollars going forward to take dollars out of the business. I wouldn't want to specifically commit to a dollar amount per year. I think we mentioned, for 2021, we're investing an additional $20 million on top of the 2020 restructuring program. That's probably a good starting point. If there are projects out there with returns, we potentially could invest more than that. If there aren't projects in any particular year, it could be a little bit lower. I think that $20 million probably is a good starting point. As it relates to R&D, I'll pass it off to Rob. Nicole, as part of our stated strategy, and we talked about it on the roadshow, we plan to take R&D up to 6%. Innovation is our vector of differentiation and will allow us to get that margin expansion. There's a lot of adjacencies and other areas that we can participate in. What we expect, while you've seen a fairly large ramp to catch up to that 6%, we expect 6% of revenue going forward to be in the R&D space so that we can be that innovative leader and look at other adjacencies as well. We expect that will produce long-term results over time. R&D does take a little while. Some of our products in the channel space, we'll see benefits within the year. Some of the larger projects we see within 12-18 months. We're very excited about the opportunities. We have more R&D projects, I would say, than we have funding. Our collaboration efforts have proven to be successful with EcoStruxure and Hyperscale, allowing us to design in and drive a better margin profile. Got it. That's helpful. Nicole, this is David. Just maybe putting the two points together. At the end of the day, we're sticking with our strategy to grow sales and hold fixed cost constant, and that creates a lot of room for both margin expansion and reinvestment. We still plan on doing both, not just in 2021, but long into the future. Got it. Thanks, Dave. Just for the follow-up, what have you guys embedded for pricing for 2021? I guess, further to that, is the expectation that you can offset recent raw material inflation with pricing, or is there any sort of price called headwind embedded in the guidance? Yeah. Hey, Nicole, good morning. It's Gary Niederpruem. I would say, if you reflect back on pricing for 2019, we had a pretty good year. I think we've told everybody we were about $20 million to the positive. In 2020, we were somewhere in that $15 million-$20 million range, our expectation is that for 2021, we will have positive price as well. Certainly, some headwinds coming from commodity and inflationary aspects all around the globe. We feel pretty good about where we sit right now to continue passing price along, whether it's going to be in the same range of what we were able to do in 2019 or 2020. Not quite sure just yet, but we'll certainly be on the plus side of that equation from where we sit today. Got it. Thank you. I'll pass it on. Your next question comes from Scott Davis, Melius Research. Everybody. Morning, Scott. Morning, Scott. I didn't hear anything and didn't expect to hear anything on M&A in your prepared remarks, but it's worth asking the question. You're delivering pretty quickly. Is there an opportunity to start to play offense, perhaps, on bolt-ons and perhaps even stuff that's a little bit larger than what you've historically looked at? Sure. Hey, Scott. Thanks for the question. Our stated strategy and what we talked about when we were out raising the pipe was we do have a robust list of potential targets that could be nice bolt-ons for adjacencies or completing a global product line. We'll continue to look at those and if it makes sense. It hasn't been our first priority. Our first priority was to pay down debt and look at acquisitions as something as opportunistic as they come. Like Dave Cote's always said, they don't always present themselves when we want them to, but we continue to look and follow and track those companies that we might be interested in. Again, it isn't our first priority to go out and buy something. We do like the option with the strengthening of our liquidity to be able to look at various things. We just have to take those as they come. Okay, fair enough. Just to be clear, on the capital spending side, when you think about your spending, and I imagine there's a mix here of things you're spending on, but is it more weighted towards new capacity or kind of tuning up, upgrading IT spend, et cetera, on existing capacity? Yeah. This is David. I would say it's probably split in three different buckets and certainly not equally split, but we are continuing investment in IT. That's something that we'll be launching an ERP system in the Americas in 2021, and that takes continued capital. Operational, it's probably a little bit over a third of the overall spending. Some of that continues to be maintenance spending, also related to some of the restructuring that we announced last year. That CapEx will be more skewed towards the back half of 2021, and we'll see benefits from that in 2022. The last bucket is related to the Vertiv Product Development or R&D initiatives. That's something, could be in a range of $20 million-$25 million, that we would anticipate to continue going forward. Overall, as I mentioned to Jeff, the 95 for this year probably is a little bit elevated. This spending, most of it is investment related, meaning there is a return, as opposed to just continuing maintenance CapEx. Okay. Super helpful. Good luck, guys, in 2021. Thanks, Scott. The next question comes from Nigel Coe of Wolfe Research. Thanks. Good morning, everyone. Just curious on the switch from EBITDA to EBITA effectively. Does that map to a way that you're changing internally in the way that you're measuring and compensating execs internally, or is it just like a change in presentation for us folks? I do think that some investors are struggling to compare like for like. Just on that regard, it looks like there's about $70 million of expenses that would've been added back in FY 2020. Stock-based comp, transformation costs, and restructuring. Those are the three buckets that I can see. If you can just confirm that from the right ballpark, that'd be helpful. Thanks. Yeah. This is David. Nigel, what I can say is that the way we report to the Street is going to be exactly the way we scorecard ourselves internally. We had used adjusted EBITDA for internal basis for measuring and compensating, and we are definitely transitioning that to adjusted operating profit as well. On a go-forward basis, if you were to look at 2021 adjusted operating profit versus what we had included for adjusted EBITDA for 2021, the $660 versus the $575, that difference is simply depreciation. On a go-forward basis, effectively what we're doing is holding ourselves accountable for capital spending and the resulting depreciation going forward. Of course, I think a lot of the confusion comes looking at the historical and some of the historical adjustments. Going forward, the only difference between adjusted EBITDA and adjusted operating profit is going to be that depreciation. Of course, very critical is not having any adjustments going forward. We're holding ourselves fully accountable for any expense that hits the P&L. The only adjustment from GAAP is going to be that intangible amortization. Right. What I'm saying, what the specific part of the question was, if we were in FY 2020, just so that investors can compare like for like and get an underlying incremental margin, it looks like $70 million of costs are being fully absorbed in your FY 2021 plan that would've been added back ordinary. Is that the right zone? I think that is directionally fair. Certainly, if you look at a couple of the items that I mentioned related to slide 13, we will have $25 million of stock compensation costs in 2021. That is a cost that in 2020 was treated as a historical add-back. In addition, we have about $25 million of IT-related expense. These are implementation costs related to new projects. That $25 million would've been included as an add-back for 2020. That's $50 million right off the bat. The $20 million additional that you expense, and that is something if you compare it to the $70 million historical add-back from the third quarter last year, also would have been treated as, or be subject to be treated as an add-back. If that's how you're developing the $70 million, I would agree with that math. That's exactly right. Thanks, David. That's helpful. A quick one on the $65 million of investment spending. Where does that take R&D? I know R&D target is 6% of sales, but where does that mark-to-market R&D as a portion of sales in 2021? Yeah. We'll be filing our 10-K on Monday. Our R&D expense, and we'll disclose R&D expense, but our R&D expense for 2020 was $230 million, which was about 5.2% of sales. That $65 million figure on slide 13, about half of that is R&D, and the other half of it is based on growth initiatives. Assuming an additional $30 million spend and the 4775 guidance for next year takes R&D as a percentage of sales up to close to 5.5%. Okay. Thanks, David. Yep. Your next question comes from Amit Daryanani of Evercore. Thanks for taking my question. I guess I have two as well. First off, when I think about the $65 million of incremental expenses in calendar 2021 that are being made, can you just talk about how you think about payback on these investments? Do I think about Vertiv's inherent growth being better in the calendar 2022 and out years? Or do I think about a step-up in conversion model? Just how do I think about the payback on these investments over the next few years? Sure, Amit. Hi, this is Rob here. What we've said on these investments is that, as I mentioned earlier, some of the projects take a little bit longer than others, but the reason for investing is so we can outpace the actual market growth. By investing in these new product categories or new product areas, it will accelerate our growth at one and a half times the market growth rate. Those things happen over a period of time. Channel type products, the more IT based products, 6-1 2 months, we begin to see a payback on those. Then the larger projects, products, typically 12- 18 months and you begin to see the sales on those. They could be things like larger UPSs, larger megawatt UPSs or larger cooling or thermal management units. Those things take typically a little bit longer to get out globally. It will yield, over the next several years, our ability to outpace the market growth rate. Got it. Then, just as a follow-up, when I think about your web scale, your hyperscale colo customer base, can you just touch on, do you think you are, at this point, over or under indexed or market share basis in that bucket? What are the steps you can take to drive up your share gains in this market over the next few years? Sure. Great question. We always kind of combine colo and hyperscale because, as we've talked about in the past, outside the U.S., the hyperscalers typically work with colo, colocation companies, for their data center builds. Inside the U.S., they typically build themselves. There's a mixture of that. I would say there's room for growth in both. If you just look at our overall market share, we have the ability to grow, and we think our collaboration method and model, working closely with our customers to design those products, will give us the ability to take additional share. We had some very nice wins in conversion in 2020 of maybe some colocation companies we haven't worked with in the past. We think there's plenty of room for growth, and as the expansion happens on a global basis, you'll see that the opportunity's there. We don't necessarily sell our full entire product set in all of the hyperscalers today, so there's room for improvement there as well, whether it's a larger battery backup system or a larger SDS or more power distribution. There's room for growth there, too. We're certainly not at a saturation level and have the ability to continue to grow our share there. That's one of the reasons why we're investing in R&D so heavily. Perfect. Thank you very much for your time. Thank you. Your next question comes from Lance Vitanza of TD Cowen. Hi. Thanks, guys, for taking the questions. First off, the revenue performance and the revenue guidance relative to the industry growth that you've discussed in the past. I guess you're taking significant market share. My question is, where exactly are you seeing these gains? Is this mostly from taking business away from the smaller companies that we necessarily haven't heard of, or are you also taking share from the Schneiders and the Eatons of the world? Great question, Lance. Thank you. This is Rob. What I'd say, it's a combination of both. When we look at some of the share gain that we're seeing, certainly there's a lot of regional players, smaller regional players that we compete against. Because of our global nature and filling out some product gaps that maybe we had, we're able to take that. I think as it relates to Eaton and Schneider, we compete with them, and it's different in every region, right? How competitive they are or they aren't. I would say in general, we believe we're growing in both cases, and taking some share. I know, just looking at some of the channel statistics in the IT channel side of things, while a lot of people were down, I think our overall decline in 2020 was much less than our competitors in some cases, therefore showing that we took some share there as well. It's kind of competing in the channel and in the colo, colocation, hyperscale. Great. Okay. My other question is actually with respect to slide 13. I wanted to focus on this 26% projected increase in adjusted operating profit. That's the metric that we're going to be looking at going forward. I think that's where we want to focus. I guess the question is: what should we think the potential there is for that kind of growth to be sustained beyond 2021? Now, I'm not asking for guidance. I'd love to get your thoughts there. If nothing else, perhaps we could talk about the $40 million of COVID savings that are sort of being restored in 2021. Well, clearly that, I would think, that's not going to be recurring in 2022 and beyond. It does sound like the growth in the R&D investments are going to continue to increase for the next several years. How should we be thinking about that 26% growth? Is that an anomaly or just indicative of what the earnings potential is for this business? Yeah, this is David. I'll take a shot and then ask Rob to come in as well. One thing that I do want to reaffirm for everybody on the call and all investors and analysts is that we are still fully committed to the margin improvement goals that we have talked to historically. Just because we're switching to adjusted operating profit from adjusted EBITDA, it doesn't change the intermediate and long-term goals that we have for margin expansion. We will have to recalibrate. I think we historically have talked about getting to 17% adjusted EBITDA, and I think equivalent number for adjusted operating profit is somewhere between 15% and 16%, but we're committed to using 16% goal. There's no reason we can't get to 20% in the long run. I think we've used that as kind of the long-term hurdle change with this transition to adjusted operating profit. I think that very much works into your question about the future expectations for adjusted operating profit growth. Certainly, we see the growth in adjusted operating profit being enhanced, and growing with the top line. As long as we continue to grow that top line above market while expanding margins, there's no reason mathematically that we can't continue similar growth going forward. Thanks very much. Makes sense. Yep. Your next question comes from Andrew Obin, Bank of America. This is David Ridley-Lane on for Andrew Obin. I wanted to ask about what your guidance assumes around the services revenue, given that you're still having site access issues here in, I guess, January, February. Yeah. Hi, I'll take a first stab at that, and then David finish that off. We will continue to deal as COVID is an issue with site access. We expect that year-over-year, we've got in the plan that we will be growing our services revenue, as part of our overall growth strategy. Again, could be through overall COVID. We can't predict what that looks like, but we've been able to navigate pretty well around that. There's just various areas and hotspots that we'll have to deal with from time to time. We do expect to have, and built into our plan is growth in the services for 2021. Got it. As a follow-up, maybe could you talk a little bit more about what you're seeing in the enterprise space? What are the areas that you're seeing the improved demand, and what's still weak? Yeah, I'd say it's going to be by industry vertical, right? We're still seeing, of course, travel and entertainment being one that hasn't recovered and not sure when that will recover. Certainly, other verticals like retail, big box stores, we've seen the spending begin there as people continue to compete for that kind of e-tail local distribution. Certainly, on the financial vertical, we see spending beginning to pick up there, in the financial space. The other areas of positive signs is around education and government spending would be the other ones that we would see from there. While some sectors are down, in general, those are kind of the areas that we're seeing some bright spots in today. Perfect. Thank you very much. Thank you. Your next question comes from Mark Delaney, Goldman Sachs. Yes. Thanks very much for taking the questions. First, just hoping to dig into the demand environment a little bit more. The company reported very strong backlog growth of, I believe, 32%, and that's now at a high level. As you're thinking about the backlog into 2021, do you think you're going to be able to sustain backlogs at this type of a high level or perhaps even grow it? Or would you think you're potentially going to work the backlog down a little bit this year? Hi, Mark. I'll start and then let David come in. We're seeing and continue to see strong demand both in Q3 and Q4. If you listen to both hyperscale and colocation, their business is going quite well, and that's a big driver in driving our backlog on projects. I think our global expansion that we're seeing in China, in the telecom side of things, certainly India now has come on the radar map for hyperscale and colocation. I guess what I'd say is we expect upper single-digit growth in the order rates and expect to continue to see that to happen. That's helpful. Thanks. My follow-up question was on the channel opportunity. Rob, you mentioned a few times throughout the call about some strength that you're seeing in that market begin to materialize. Is that more a function of the macroeconomic environment and some of those types of customers coming back? Would you attribute it as well to some of the company's specific efforts that Vertiv has underway to better penetrate those channel customers? Yeah, great question, Mark. I attribute it to kind of the execution and some of the programs and some of the products that we brought out. We've got some unique products in our power distribution, IT power distribution side. We've been pretty aggressive on our lithium-ion offerings, and making sure that that's available. Some of the programs that we've targeted are paying off. We've had, as we mentioned, quarter-to-quarter, year-over-year still was down, but quarter-to-quarter, we've seen the improvements. We feel like we're on the right trajectory with both new product intros, the programs that we're offering. We've certainly simplified our partner portals, project registration, being that hopefully easier button for our customers to come to Vertiv for that. We're taking that same, and we've kind of globalized that same strategy to Europe, which is a little bit further behind, and then driving it into the rest of Asia and China. As you know, this is a big part of our strategy. This does take time. We've chosen to do it organically. We believe that our current strategy and trajectory will yield the results ultimately that we're looking for. Thank you. Your next question comes from Andy Kaplowitz of Citi. Good afternoon, guys. Good afternoon, Andy. Can you give us a little more color into the continued strength you're seeing specifically in EMEA? You've been talking about working on some large colocation projects for a while now. Do these projects continue through 2021? I know in the past you've talked about regional data sovereignty driving growth. How sustainable are these trends there, and what else is going on in the region that's leading to such good performance in EMEA specifically? Absolutely, Andy, great catch on the EMEA side of things. What we see typically with hyperscale and colo is typically rushing to various parts of the world. There'll be, well, let's say maybe not as much spending in the U.S. going on or growth. We have seen that in Europe, and I firmly believe the data sovereignty, people want data centers in their country. Governments want that data there. They don't want it sitting in data centers in the U.S., nor in China. I think there's a lot of build-out. If you take just a look at the number of data centers, number of cell phone users, number of broadband access in Europe versus what you've got in the U.S., I think we have a lot of runway ahead of ourselves as it relates to Europe, and the builds that still have to happen there. The Brexit thing has driven lots of data center builds in parts that we didn't think were necessarily going to happen. We continue to see strength, I think, over the next couple of years in the European side of things. We have taken some share there. We've had some new customers that we haven't traditionally done business with in the past. The customer acquisition has been good there. I'll tell you, if you look at globally, I'm pretty excited about whether it's Europe or Middle East and Africa, South America. Again, lot of chatter and talk in India around colocation and hyperscale finally coming there. They're so underserved. I think we've got a lot of runway in other parts of the world, plus what's still happening here in the U.S. Not that the U.S. isn't going to grow, it's going to continue to grow, but I think we'll see outside Europe. Europe's leading the way now, but I think you'll begin to see some of the Asia countries and certainly India begin to pop up on the radar screen as nice areas. All in all, I look at the next several years as we've got a fairly healthy market in front of us. Very helpful. Then actually following up on Asia Pac, just in terms of margin, you've talked about some margin pressure there coming from product mix, timing of large projects. How should we think about the margin progression going forward? Do large projects start to ramp and that'll help your margin there? You've talked about supply chain stresses. Does that hurt you in Asia Pac? Any more color would be helpful. Yeah, I'll start off there, and then David, if you want to come in over the top. I would say in general, we're probably weighted more towards the telecom side of things in parts of Asia Pac, and that tends to be kind of lower than fleet average margin that we see. As we continue to drive innovation and invest in innovation specifically in China, we expect to be able to get paid for that innovation as we go forward. We're certainly focused on getting that closer to the fleet average. There is a mix difference, as it relates to the types of products we're selling there today. Channel's going to be an important part of our success there. Specifically China, I think, is a driver from a margin perspective as it relates to areas of focus. Being more local and driving that local innovation is going to be an important part of what we're doing 2021 and beyond. David, any other thoughts? No, I think you hit it pretty well, Rob, and certainly there is lower margin you get with certain larger projects. We have tailwinds from a mix perspective from both the channel and some of the initiatives to grow services. We certainly aren't relying on mix to be a huge margin enhancement opportunity going forward. I think we're assuming relatively flat, but there is that potential it could actually be a tailwind for us. Very helpful, guys. Thanks. Thank you. No further questions at this time. This concludes our question and answer session. I'd like to turn the conference back over to Rob Johnson for any closing remarks. Thank you, operator. I'm going to close the call by thanking our 20,000 employees around the world for working hard every day to take care of our customers. We appreciate everyone's time today. Please stay safe, and we look forward to speaking with you again soon. Thank you very much for your support. Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.