Vontier Corporation · NYSE:VNT
Vontier — Q1 2022 Earnings Presentation
21 slides from Vontier's earnings presentation, May 5, 2022
Slide 1: First Quarter 2022 Earnings Release
First Quarter 2022 Earnings Release May 5, 2022 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: Q1 2022 Summary
Q1 2022 Summary Continued strong execution delivers another quality beat – Adj. EPS $0.70, +11% DD DRB and non-EMV growth, strong price/cost actions; partially offset by mix and supply chain headwinds – Adj. GMX +80 bps cost/price positive – Core OMX +20 bps profitable growth initiatives drove favor
Slide 5: Q1 2022 Financial Performance
Q1 2022 Financial Performance Summary of Key Financial Items • Total growth: 5.7% • GAAP OP Margins -80 bps • GAAP EPS of $1.50 • Core revenue growth: (0.1)% • Adj. Core OMX 20 bps • 23.0% Adj. Effective Tax Rate ("ETR") • Acquisitions: 7.2% • Reflecting Adj. GMX +80 bps • Share Repurchase +$0.02 •
Slide 6: Q1 2022 Free Cash Flow Detail
Q1 2022 Free Cash Flow Detail • Q1 2022: Adj. Free Cash Flow ($M) and FCF – Free Cash Flow: $28M, -81%; conversion of 11% of GAAP Net Earnings Conversion (%) 148% – Adj. Free Cash Flow: $40M, -75%; conversion of 34% of Adj. Net Earnings, reflecting increase in working capital due to return to typica
Slide 7: Performance by Platform
Performance by Platform Mobility Technologies and other Diagnostics & Repair Technologies Revenue Revenue +5.5% • DRB continuing to +6.1% • Strong growth in Core (2.4)% deliver strong DD Core +6.1% Diagnostic Tools growth and Tool Storage • Electronic • Backlog almost component doubled Y-O-Y in shor
Slide 8: HSD Non-EMV Core Revenue Growth & Strong FCF Conversion Drives Compounding EPS Growth
HSD Non-EMV Core Revenue Growth & Strong FCF Conversion Drives Compounding EPS Growth Ahead of Revenue Growth HSD Non-EMV Core Revenue Growth 2022-2023 EMV Profitable Growth Platform Capital YoY Sunset Initiatives Strategies Deployment1 Revenue -$300M to - +LDD YoY +HSD YoY ~$100M Impact $350M Core
Slide 9: Thoughts on Q2 and FY22
Thoughts on Q2 and FY22 Q2 Considerations – Anticipate total revenue growth +MSD, core revenue flat, reflecting continued supply chain and component availability headwinds – Expect flat adj. core OMX, excluding restructuring costs – Expect adj. EPS of $0.68 - $0.72 – ETR ~23% FY22 Considerations – A
Slide 10: Supplemental Reconciliation and Other Data
Supplemental Reconciliation and Other Data 10 10
Slide 11: Reconciliation of Gross Profit to Adjusted Gross Profit and Margin
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN Three Months Ended $ in millions April 1, 2022 April 2, 2021 Revenue (GAAP) $ 748.1 $ 707.4 Gross Profit (GAAP) $ 335.3 $ 311.8 Restructuring costs 0.3 — Adjusted Gross Profit (Non-GAAP) $ 335.6 $ 311.8 Gross Pr
Slide 12: 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 $ in millions April 1, 2022 April 2, 2021 Revenue (GAAP) $ 748.1 $ 707.4 Operating Profit (GAAP) $ 134.8 $ 132.9 Amortization of acquisition-related intangible assets 18.5 7.6 Rest
Slide 13: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended April 1, 2022 2021 Adjusted Operating Profit Margin (Non-GAAP) 21.4% Core (Non-GAAP) 0.2% Acquisitions (Non-GAAP) 0.3% 2022 Adjusted Operating Profit Margin (Non-GAAP) 21.9% 13 13
Slide 14: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS Three Months Ended $ in millions April 1, 2022 April 2, 2021 Net Earnings (GAAP) $ 250.2 $ 91.0 Amortization of acquisition-related intangible assets 18.5 7.6 Restructuring costs 0.6 4.0 Transaction- and deal-related costs 7.1 1.8 Earnings attr
Slide 15: 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 April 1, 2022 April 2, 2021 Diluted Net Earnings per Share (GAAP) $ 1.50 $ 0.54 Amortization of acquisition-related intangible assets 0.11 0.04 Restructuring costs — 0.02 Transaction- and d
Slide 16: Forecasted Adjusted Diluted Net Earnings Per Share
FORECASTED ADJUSTED DILUTED NET EARNINGS PER SHARE Three Months Ended Year Ended July 1, 2022 December 31, 2022 Low End High End Low End High End Forecasted Diluted Net Earnings Per Share $ 0.57 $ 0.61 $ 3.72 $ 3.82 Anticipated amortization of acquisition-related intangible assets 0.12 0.12 0.47 0.4
Slide 17: 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 $ in millions April 1, 2022 April 2, 2021 % Change Operating Cash Flows (GAAP) $ 41.3 $ 163.3 (74.7)% Less: Purchases of property, plant & equipment (capital expenditures) (12.9) (11.0) Free Cas
Slide 18: Reconciliation of Operating Cash Flows to Adjusted Free Cash Flow and Conversion
RECONCILIATION OF OPERATING CASH FLOWS TO ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION Three Months Ended $ in millions April 1, 2022 April 2, 2021 % Change Operating Cash Flows (GAAP) $ 41.3 $ 163.3 (74.7)% Less: Purchases of property, plant & equipment (capital expenditures) (12.
Slide 19: Components of Revenue Growth
COMPONENTS OF REVENUE GROWTH Components of Revenue Growth % Change Three Months Ended April 1, 2022 vs. Comparable 2021 Period Total Revenue Growth (GAAP) 5.7% Core revenue growth (Non-GAAP) (0.1)% Impact of acquisitions (Non-GAAP) 7.2% Impact of currency exchange rates (Non-GAAP) (1.4)% 19 19
Slide 20: Components of Revenue Growth by Platform
COMPONENTS OF REVENUE GROWTH BY PLATFORM % Change Three Months Ended April 1, 2022 vs. Comparable 2021 Period Components of Revenue Growth Mobility Technologies Diagnostics & Repair Technologies Total Revenue Growth (GAAP) 5.5% 6.1% Core revenue growth (Non-GAAP) (2.4)% 6.1% Impact of acquisitions (
Slide 21: Net Leverage Ratio and Reconciliation from Net Earnings to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 2,604.2 Less: Cash (145.1) Net Debt $ 2,459.1 Adjusted EBITDA (Non-GAAP) $ 740.0 Net Leverage Ratio 3.3 Three Months Ended Year Ended LTM $ in millions April 2, 2021 April 1, 2022 December 31, 2021 Apri