Slide 1: Fourth Quarter 2020 Earnings Release
Fourth Quarter 2020 Earnings Release February 11, 2021 1
Slide 2: Forward-Looking Statements
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, anticipated revenu
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains references to “core revenue growth,” “free cash flow,” "free cash flow conversion," “adjusted free cash flow,” “adjusted free cash flow conversion,” “adjusted operating profit,” “adjusted operating profit margin" “adjusted core operating margin
Slide 4: Q4 Summary
Q4 Summary Strong finish to 2020 as VBS continues to drive outstanding cash flow conversion, core revenue growth and margin expansion – Adj. EPS $0.87, +21% driven by better-than-expected core revenue growth and strong OMX – Adj. FCF of $207M, +7% and Adj. FCF conversion of 141% driven by strong ear
Slide 5: Q4 2020 Financial Performance
Q4 2020 Financial Performance Summary of Key Financial Items Revenue Adj. Operating Profit Adj. Diluted Net EPS ($M) Margin (%) $743 $815 24.6% $0.87 22.3% $0.72 Q4 2019 Q4 2020 Q4 2019 Q4 2020 Q4 2019 Q4 2020 • Core revenue growth: 8.5% • GAAP OP Margins -10 bps • GAAP EPS of $0.81 • Acq/Div: —% •
Slide 6: Q4 2020 Free Cash Flow Detail
Q4 2020 Free Cash Flow Detail Adj. Free Cash Flow ($M) and FCF Conversion (%) • Q4 2020: 141% 160% – Free Cash Flow: $202M, -5%; conversion of 148% of GAAP Net Earnings – Adj. Free Cash Flow: $207M, +7%; conversion of 141% of Adj. Net Earnings in-line with normal seasonality $194 $207 • FY 2020: – F
Slide 7: Performance by Platform
Performance by Platform Mobility Technologies Diagnostics & Repair Technologies Revenue Revenue +9.2% • Continued +11.3% • Accelerated Core +8.3% growth from Core +9.2% demand across EMV and Mexico Matco product regulatory lines drivers in GVR • Grew franchisee $646 • Strong $169 base in 2020; $592
Slide 8: Thoughts on Q1 and FY21
Thoughts on Q1 and FY21 Q1 Considerations – Anticipate core revenue growth of +HSD – Expect adj. core OMX >200 bps, excluding the anticipated impact of restructuring costs – Expect adj. EPS of $0.52 - $0.55 – ETR ~24% FY21 Considerations – Anticipate core revenue growth of (1%) to +1% – Expect adj.
Slide 9: Supplemental Reconciliation Data
Supplemental Reconciliation Data 9 9
Slide 10: Reconciliation of Operating Profit to Adjusted Operating Profit and Margin
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT AND ADJUSTED OPERATING PROFIT MARGIN Three Months Ended Year Ended $ in millions December 31, 2019 December 31, 2020 December 31, 2019 December 31, 2020 Revenue (GAAP) $ 743.3 $ 815.0 $ 2,772.1 $ 2,704.6 Operating Profit (GAAP) $ 162.8
Slide 11: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended December 31, 2020 2019 Adjusted Operating Profit Margin (Non-GAAP) 22.3% Core (Non-GAAP) 2.4% Currency exchange rates (Non-GAAP) (0.1)% 2020 Adjusted Operating Profit Margin (Non-GAAP) 24.6% 11 11
Slide 12: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS Three Months Ended Year Ended $ in millions December 31, 2019 December 31, 2020 December 31, 2019 December 31, 2020 Net Earnings (GAAP) $ 126.2 $ 136.8 $ 436.5 $ 342.0 Amortization of acquisition-related intangible assets 7.8 7.2 31.8 29.0 Rest
Slide 13: Reconciliation of Diluted EPS to Adjusted Diluted EPS
RECONCILIATION OF DILUTED NET EARNINGS PER SHARE TO ADJUSTED DILUTED NET EARNINGS PER SHARE Three Months Ended Year Ended December 31, 2019 December 31, 2020 December 31, 2019 December 31, 2020 Diluted Net Earnings per Share (GAAP) $ 0.75 $ 0.81 $ 2.59 $ 2.02 Amortization of acquisition-related inta
Slide 14: Forecasted Adjusted Diluted Net Earnings per Share
FORECASTED ADJUSTED DILUTED NET EARNINGS PER SHARE Three Months Ended Year Ended April 2, 2021 December 31, 2021 Low End High End Low End High End Forecasted Diluted Net Earnings per Share $ 0.47 $ 0.50 $ 2.15 $ 2.25 Anticipated amortization of acquisition-related intangible assets 0.04 0.04 0.17 0.
Slide 15: Reconciliation of Operating Cash Flows to Free Cash Flow and Conversion
RECONCILIATION OF OPERATING CASH FLOWS TO FREE CASH FLOW AND FREE CASH FLOW CONVERSION Three Months Ended Year Ended $ in millions December 31, 2019 December 31, 2020 % Change December 31, 2019 December 31, 2020 % Change Operating Cash Flows (GAAP) $ 222.9 $ 210.7 (5.5)% $ 545.2 $ 691.3 26.8 % Less:
Slide 16: Reconciliation of Operating Cash Flows to Adjusted Free Cash Flow
RECONCILIATION OF OPERATING CASH FLOWS TO ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION Three Months Ended Year Ended $ in millions December 31, 2019 December 31, 2020 % Change December 31, 2019 December 31, 2020 % Change Operating Cash Flows (GAAP) $ 222.9 $ 210.7 (5.5)% $ 545.2 $
Slide 17: Components of Revenue Growth
COMPONENTS OF REVENUE GROWTH Components of Revenue Growth Three Months Ended December 31, 2019 Three Months Ended December 31, 2020 Total Revenue Growth (GAAP) 2.3 % 9.6 % Existing businesses (Non-GAAP) 4.1 % 8.5 % Acquisitions and divestitures (Non-GAAP) —% —% Currency exchange rates (Non-GAAP) (1.
Slide 18: Components of Revenue Growth by Platform
COMPONENTS OF REVENUE GROWTH BY PLATFORM Three Months Ended December 31, 2020 Components of Revenue Growth Mobility Technologies Diagnostics & Repair Technologies Total Revenue Growth (GAAP) 9.2 % 11.3 % Existing businesses (Non-GAAP) 8.3 % 9.2 % Acquisitions and divestitures (Non-GAAP) —% —% Curren
Slide 19: Net Leverage Ratio and Reconciliation to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 1,810.9 Less: Cash (380.5) Net Debt 1,430.4 Adjusted EBITDA (Non-GAAP) $ 665.2 Net Leverage Ratio 2.2 Year Ended $ in millions December 31, 2020 Net Earnings (GAAP) $ 342.0 Interest (income) expense, ne