Slide 1: Q2 2024 | Earnings Results
Q2 2024 | Earnings Results August 1, 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: Q2 2024 | Financial & Operational Highlights
Q2 2024 | Financial & Operational Highlights • Q2 Sales shortfall ✓Timing of order delays impacted shipments in the quarter • Recovered >$20M in the month of July ✓Current U.S. macro impacting technician spend at Repair Solutions Core Sales Growth (3%) • Book-to-Bill 1.01X, up from 0.97x vs. 2023 ye
Slide 4: Focused Execution | Connected Mobility Strategy
Focused Execution | Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS Operating Profit Margin Expansion Grow and diversify portfolio Expand into close adjacencies • Accelerating VBS & FPP1 actions • Focus on innovation & NPI • Leverage po
Slide 5: Q2 2024 | Summary Financial Results
Q2 2024 | Summary Financial Results Sales Adj. Operating Profit Margin Adj. Diluted Net EPS Adj. Free Cash Flow ($M) (%) ($) ($M) $764 $696 20.9% 20.3% $0.67 $0.63 $77 $26 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 Q2 2023 Q2 2024 • Total growth: (9%) • Adj. OP Margin (60bps) • GAAP Diluted Net
Slide 6: Segment Results | Environmental & Fueling Solutions
Segment Results | Environmental & Fueling Solutions Sales Segment Operating Profit Q2 Highlights: ($M) ($M) • Mixed sales performance by product line Total (8.3%) ‒ Dispenser sales declined YoY on delayed order timing 28.7% Core (5.0%) ‒ Strong demand for Aftermarket Parts +60 bps ‒ Environmental up
Slide 7: Segment Results | Mobility Technologies
Segment Results | Mobility Technologies Sales Segment Operating Profit Q2 Highlights: ($M) ($M) • Strong demand for C-Store payment and enterprise productivity solutions Total (0.5%) 17.3% ‒ Low double-digit growth at Invenco by GVR Core +1.0% (140 bps) ‒ Lower demand for Car Wash solutions as expec
Slide 8: Segment Results | Repair Solutions
Segment Results | Repair Solutions Sales Segment Operating Profit Q2 Highlights: ($M) ($M) • Current U.S. macro impacting technician spend and Same-Store Sales growth Total (4.8%) 21.3% ‒ Demand for Tool Storage and Hardline turned lower late in Core (4.8%) (500 bps) the quarter ‒ Growth in Diagnost
Slide 9: Q2 2024 | Balance Sheet & Cash Flow
Q2 2024 | Balance Sheet & Cash Flow Q2 Capital Deployment Q2 2023 Q4 2023 Q2 2024 • Repaid $50M of debt in Q2; 2024 maturity retired Free Cash Flow ($M) • Repurchased $38M in shares in Q2 ($60M YTD); ~$294M remaining under existing share repurchase authorization Cash from Operating Activities $78 $1
Slide 10: Guidance | Q3 and FY 2024
Guidance | Q3 and FY 2024 Guide Commentary & Assumptions 2024 Prior FY 2024 Updated FY 2024 Q3 2024 Sales Guide Guide Guide • FX: ~$20 – 25M headwind YoY • Net Acquisition & Divestitures: (~$150M1) Sales $3,040 - $3,100M $2,900 - $3,000M $715 - $740M Other P&L Assumptions Core Growth +4 – 6% (1%) –
Slide 11: 2024 Outlook | Sales Guidance Bridge
2024 Outlook | Sales Guidance Bridge Market Commentary: Repair Solutions ~$3,070 • Despite strong employment & wages, Previous current U.S. macro impacting Sales technicians’ discretionary spending Midpoint ~$(40) ~$(10) • Higher priced items down after multiple quarters of strong growth (material s
Slide 12: 2024 Outlook | Adjusted EPS Guidance Bridge
2024 Outlook | Adjusted EPS Guidance Bridge Prior 2024 Adjusted EPS Midpoint $3.08 Sales Decline – $120M at Standard GM% (29c) Restructuring Savings ($12M in-year) +6c Expected ASR – $100M +2c Interest/Tax/Other +3c Net Change (18c) Updated 2024 Adjusted EPS Midpoint $2.90 12 Note: See “Non-GAAP Fin
Slide 13: Appendix
ENABLING THE WAY THE WORLD MOVES™ > NON TIER APPENDIX
Slide 14: End Markets | Attractive Secular Trends
End Markets| Attractive Secular Trends CONVENIENCE RETAIL FLEETS AUTO REPAIR ENERGY TRANSITION: decarbonizing fueling infrastructure and environmental compliance Secular INCREASED COMPLEXITY: evolving consumer preferences, growing site scope, increased industry consolidation and regulation Trends LA
Slide 15: 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 16: 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 17: Components of Sales Growth
COMPONENTS OF SALES GROWTH % Change Six Months Ended June 28, 2024 vs. Comparable 2023 Period Mobility Technologies Repair Solutions Environmental & Fueling Solutions Other Segment Total Total Sales Growth (GAAP) (0.9)% (1.9)% (1.7)% (97.9)% (5.8)% Core sales growth (Non-GAAP) 0.7% (1.9)% 2.0% —% 0.
Slide 18: Reconciliation of Operating Profit to Adjusted Operating Profit and Segment Operating Profit
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT AND SEGMENT OPERATING PROFIT Three Months Ended Six Months Ended $ in millions June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Sales (GAAP) $ 696.4 $ 764.4 $ 1,452.2 $ 1,540.8 Operating Profit (GAAP) $ 114.1 $ 120.6 $ 256.2 $ 25
Slide 19: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS Three Months Ended Six Months Ended $ in millions June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Net Earnings (GAAP) $ 70.1 $ 97.3 $ 206.9 $ 180.1 Amortization of acquisition-related intangible assets 20.0 20.3 40.0 41.0 Restructuring-
Slide 20: 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 Three Months Ended Six Months Ended $ in millions June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Operating Cash Flow (GAAP) $ 46.1 $ 77.5 $ 137.6 $ 158.5 Less: Purchases of property, plant & equipmen
Slide 21: Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow and Conversion
RECONCILIATION OF OPERATING CASH FLOW TO ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION RATIO Three Months Ended Six Months Ended $ in millions June 28, 2024 June 30, 2023 June 28, 2024 June 30, 2023 Operating Cash Flow (GAAP) $ 46.1 $ 77.5 $ 137.6 $ 158.5 Less: Purchases of property
Slide 22: Net Leverage Ratio and Reconciliation to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 2,205.9 Less: Cash (331.3) Net Debt $ 1,874.6 Adjusted EBITDA (Non-GAAP) $ 696.0 Net Leverage Ratio 2.7 Three Months Ended LTM $ in millions June 28, 2024 June 28, 2024 Net Earnings (GAAP) $ 70.1 $ 403.