Vontier Corporation · NYSE:VNT
Vontier — Q1 2024 Earnings Presentation
20 slides from Vontier's earnings presentation, May 2, 2024
Slide 1: Q1 2024 | Earnings Results
Q1 2024 | Earnings Results May 2, 2024
Slide 2: Safe Harbor and Forward-Looking Statements
Safe Harbor and Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities, a
Slide 3: Q1 2024 | Financial & Operational Highlights
Q1 2024 | Financial & Operational Highlights • Solid execution across the portfolio ✓High levels of investment across the mobility ecosystem supporting growth for enterprise productivity, retail fueling, and alternative energy solutions Core Sales Growth +4% • End market demand remains constructive
Slide 4: End Market Spotlight | Convenience Retail
End Market Spotlight | Convenience Retail NA Non-Fuel Retail Long Secular Growth1 1➢ Growing Consumer Preferences for Quick, Vontier Solutions Enabling Convenience Retail 5% CAGR Cost-Effective, Efficient Shopping Operations • C-Stores within 10 min. of 93% of Americans +10% Point-of-Sale (POS) Solu
Slide 5: End Market Spotlight | Retail Fueling
End Market Spotlight | Retail Fueling Global Fuel Consumption1 (millions barrels/day) Vontier Solutions Enabling Retail Fueling Operations 0.5% CAGR ~70%3 ICE Equipped Global Vehicle Parc in 2040 US EU North America Dispenser Full Dispenser India +MSD replacement demand Dispensers Payment Kits ROW 2
Slide 6: Q1 2024 | Summary Financial Results
Q1 2024 | Summary Financial Results Sales Adj. Operating Profit Margin Adj. Diluted Net EPS Adj. Free Cash Flow ($M) (%) ($) ($M) $776 $756 22.1% $0.74 20.8% $0.68 $78 $78 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Q1 2023 Q1 2024 • Total growth: (3%) • Adj. OP Margin +130bps • GAAP Diluted Net
Slide 7: Segment Results | Environmental & Fueling Solutions
Segment Results | Environmental & Fueling Solutions Sales Segment Operating Profit Q1 Highlights: ($M) ($M) • Broad-based growth across the portfolio Total +5.5% • Strong growth in North America Dispenser, Aftermarket 29.4% Parts and Environmental Solutions Core +9.6% +370bps • Demand remains robust
Slide 8: Segment Results | Mobility Technologies
Segment Results | Mobility Technologies Sales Segment Operating Profit Q1 Highlights: ($M) ($M) • Difficult comparison vs. prior year [Q1’23 +12% core] Total (1.3%) • Continued strong demand for Alternative Energy solutions 19.6% Core +0.3% • C-store enterprise productivity solutions driving growth
Slide 9: Segment Results | Repair Solutions
Segment Results | Repair Solutions Sales Segment Operating Profit Q1 Highlights: ($M) ($M) • Difficult comparison vs. prior year [Q1’23 +11% core] Total +0.6% • Solid Same-Store Sales growth, offset by lower Franchisee adds 24.5% Core +0.6% • Continued strength in Tool Storage and Diagnostics (160bp
Slide 10: Q1 2024 | Balance Sheet & Cash Flow
Q1 2024 | Balance Sheet & Cash Flow Q1 2023 Q4 2023 Q1 2024 • Repaid $50M of debt in Q1, reducing 2024 maturity • Q1 share repurchases ~$22M Free Cash Flow ($M) • $750M undrawn revolver Cash from Operating Activities $81 $165 $92 • Q1 Net Leverage Ratio 2.6X; Target ~2.5-3.0X • Q1 Adj. FCF conversio
Slide 11: Guidance | Q2 and FY 2024
Guidance | Q2 and FY 2024 Guide Commentary & Assumptions 2024 Prior FY 2024 Updated FY 2024 Q2 2024 Sales Guide Guide Guide • FX: ~$10-15M headwind YoY • Net Acquisition & Divestitures: ($140-150M1) Sales $3,050 - $3,110M $3,040 - $3,100M $735 - $750M Other P&L Assumptions Core Growth +4 – 6% +4 – 6
Slide 12: Appendix
ENABLING THE WAY THE WORLD MOVES™ > NON TIER APPENDIX
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains references to “core sales growth," “adjusted operating profit,” “adjusted operating profit margin,” "segment operating profit," "segment operating profit margin," “adjusted net earnings,” “adjusted diluted net earnings per share,” “free cash flo
Slide 14: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) • Adjusted net earnings refers to net earnings calculated in accordance with GAAP, but excluding on a pretax basis amortization of acquisition-related intangible assets, Restructuring- and divestiture-related adjustments, transaction- and deal-related costs, a
Slide 15: Components of Sales Growth
Components of Sales Growth 15
Slide 16: Reconciliation of Operating Profit to Adjusted Operating Profit and Segment Operating Profit
Reconciliation of Operating Profit to Adjusted Operating Profit and Segment Operating Profit 16
Slide 17: Reconciliation of Net Earnings to Adjusted Net Earnings
Reconciliation of Net Earnings to Adjusted Net Earnings 17
Slide 18: Reconciliation of Operating Cash Flow to Free Cash Flow and Conversion Ratio
Reconciliation of Operating Cash Flow to Free Cash Flow and Free Cash Flow Conversion Ratio 18
Slide 19: Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow and Conversion Ratio
Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow and Adjusted Free Cash Flow Conversion Ratio 19
Slide 20: Net Leverage Ratio and Reconciliation from Net Earnings to Adjusted EBITDA
Net Leverage Ratio and Reconciliation from Net Earnings to EBITDA to Adjusted EBITDA 20