Slide 1: Fourth Quarter 2016 Earnings Release
Fourth Quarter 2016 Earnings Release February 7, 2017 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, including the statements regarding Fortive's anticipated diluted net earnings per share, adjusted diluted net earnings per share, core revenue growth, growth opportunities, capi
Slide 3: Fourth Quarter 2016 Performance Summary
Fourth Quarter 2016 Performance Summary NON-GAAP ADJUSTED NET REVENUE EARNINGS +3.3% Core +3.5% +3.6% Acquisitions* +0.9% FX -1.1% $1,627.1 $1,575.8 $229.5 $237.7 Q4 2015 Q4 2016 Q4 2015 Q4 2016 * Includes the impact from acquisitions and the Separation 3
Slide 4: Fourth Quarter 2016 Performance Summary
Fourth Quarter 2016 Performance Summary Non-GAAP Adjusted GROSS MARGINS Operating Margin Q4 2015 – 48.1% +90 bps 0 bps Q4 2016 – 49.0% Core +20 bps Acquisitions* -20 bps NON-GAAP ADJUSTED SG&A (as a % of Revenue) Q4 2015 – 21.5% +60 bps Q4 2016 – 22.1% 20.8% 20.8% R&D (as a % of Revenue) Q4 2015 – 5
Slide 5: Fourth Quarter 2016 Performance Summary
Fourth Quarter 2016 Performance Summary Quarter Ended Year Ended December 31 December 31 ($M) 2015 2016 2015 2016 OPERATING CASH FLOW $388 $318 $1,009 $1,137 CAP EX 33 40 120 130 FREE CASH FLOW $355 $278 $889 $1,007 5
Slide 6: Fourth Quarter 2016 Professional Instrumentation
Fourth Quarter 2016 Professional Instrumentation Revenue Non-GAAP Adjusted +0.3% Operating Margin Core +1.2% Acquisitions* +0.4% -90 bps FX -1.3% Core -30 bps Acquisitions* -60 bps $744.5 $746.5 24.0% 23.1% Q4 2015 Q4 2016 Q4 2015 Q4 2016 * Includes the impact from acquisitions and the Separation 6
Slide 7: Fourth Quarter 2016 Industrial Technologies
Fourth Quarter 2016 Industrial Technologies Revenue Non-GAAP Adjusted +5.9% Operating Margin Core +5.6% Acquisitions* +1.3% +80 bps FX -1.0% Core +80 bps Acquisitions* 0 bps $880.6 $831.3 19.9% 20.7% Q4 2015 Q4 2016 Q4 2015 Q4 2016 * Includes the impact from acquisitions and the Separation 7
Slide 8: 2017 Outlook
2017 Outlook Core revenue growth of +LSD with ~30-35% fall-through Over 50 basis points of operating margin expansion on a GAAP basis FX* headwind 100-200 basis points of revenue and ~$0.05 in EPS Effective tax rate of ~28% *based on 12/31/16 exchange rates 8
Slide 9: 2017 Adjusted Diluted EPS Guidance
2017 Adjusted Diluted EPS Guidance 2017 adjusted EPS guidance implies 3-7% growth y/y 9
Slide 10: Q&A
2017 Outlook (@ FORTIVE Q&A
Slide 11: Fortive
(2) FORTIVE