Slide 1: Third Quarter 2018 Earnings Release
Third Quarter 2018 Earnings Release October 25, 2018 1
Slide 2: Forward-Looking Statements & Non-GAAP Financial Measures
FORWARD-LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Statements in this presentation that are not strictly historical, statements regarding the Company's anticipated earnings, business and acquisition opportunities, timing of acquisitions and dispositions, anticipated revenue growth, anticipated
Slide 3: Performance Summary
PERFORMANCE SUMMARY ADJUSTED DILUTED NET REVENUE EARNINGS PER SHARE +9.2% Core +3.2% +11.7% Acquisitions +7.2% FX -1.2% $1,840.1 $0.86 $0.77 $1,685.3 Q3 2017 Q3 2018 Q3 2017 Q3 2018 3
Slide 4: Performance Summary
PERFORMANCE SUMMARY OPERATING MARGIN GROSS MARGINS -370 bps Q3 2017 – 49.8% Core -25 bps +40 bps Acquisitions -85 bps Q3 2018 – 50.2% Transaction Costs -260 bps SG&A (as a % of Revenue) Q3 2017 – 22.6% +410 bps Q3 2018 – 26.7% 21.2% R&D 17.5% (as a % of Revenue) Q3 2017 – 6.1% Flat Q3 2017 Q3 2018 Q
Slide 5: Performance Summary
PERFORMANCE SUMMARY Three Months Ended Nine Months Ended FCF FCF September September % September September % 29, 2017 28, 2018 Change 29, 2017 28, 2018 Change ($M) Operating Cash Flow $ 319 $ 387 $ 713 $ 900 Cap Ex 32 35 88 94 Free Cash Flow $ 287 $ 352 23% $ 625 $ 806 29% Net Earnings (GAAP) $ 268
Slide 6: Professional Instrumentation
PROFESSIONAL INSTRUMENTATION REVENUE OPERATING MARGIN +13.6% -270 bps Core +1.4% Core 0 bps Acquisitions +13.2% Acquisitions -180 bps FX -1.0% Transaction Costs -90 bps $894.1 $786.8 22.8% 20.1% Q3 2017 Q3 2018 Q3 2017 Q3 2018 Field Solutions* Product Realization* Sensing Technologies * Part of Adva
Slide 7: Industrial Technologies
INDUSTRIAL TECHNOLOGIES REVENUE OPERATING MARGIN +5.3% -80 bps Core +4.8% Core -40 bps Acquisitions +2.0% Acquisitions -40 bps FX -1.5% 21.9% $946.0 21.1% $898.5 Q3 2017 Q3 2018 Q3 2017 Q3 2018 Transportation Technologies Automation & Specialty Components Franchise Distribution 7
Slide 8: Fortive Formula Delivering Double Digit Earnings Growth in 2018
Fortive Formula Delivering Double Digit Earnings Growth in 2018 8
Slide 9: Expect another year of double-digit adj. earnings growth
Expect another year of double-digit adj. earnings growth 9
Slide 10: Impact of MCPS on Adjusted Diluted Earnings Per Share
IMPACT OF MCPS ON ADJUSTED DILUTED EARNINGS PER SHARE MCPS CONVERSION SENSITIVITY * Represents FTV’s average VWAP for the 20 consecutive trading days preceding and including September 28, 2018 10
Slide 11: Q&A
@ FORTIVE Q&A
Slide 12: (2) FORTIVE
(2) FORTIVE