Slide 1: Fourth Quarter and Full Year 2024 Results
Fourth Quarter and Full Year 2024 Results February 4, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements in this presentation, including statements regarding the Company's first quarter and full year 2025 financial performance, the Company’s differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other stateme
Slide 3: Opening Remarks
Opening Remarks Jennifer L. Honeycutt President and Chief Executive Officer Q4 2024 Results | February 4, 2025
Slide 4: Full Year 2024 key consolidated financial results
Veralto / Full Year 2024 key consolidated financial results ADJUSTED OPERATING ADJUSTED ADJUSTED FREE CASH SALES PROFIT* EPS* EBITDA* FLOW* $5,193m $1,251m $3.54 $1,291m $820m core sales 24.1% adjusted +11% 24.9% adjusted 98% free cash growth* of +3.7% operating margin* year-over-year EBITDA margin*
Slide 5: Q4 2024 key consolidated financial results
Veralto / Q4 2024 key consolidated financial results ADJUSTED OPERATING ADJUSTED ADJUSTED FREE CASH SALES PROFIT* EPS* EBITDA* FLOW* $1,345m $320m $0.95 $330m $263m core sales 23.8% adjusted +9% 24.5% adjusted 116% free cash growth* of +4.6% operating margin* year-over-year EBITDA margin* flow conve
Slide 6: Core sales growth by region for Q4 and YTD 2024
Veralto / Core sales growth by region for Q4 and YTD 2024 NORTH AMERICA (47% of Q4 sales) WESTERN EUROPE (22% of Q4 sales) HIGH GROWTH MARKETS (28% of Q4 sales) Q4 2024 Commentary WQ +5.8% WQ +7.3% WQ +0.5% North America: Q4 2024 +5.8% +5.8% +1.5% PQI +5.8% PQI +4.4% PQI +2.7% • WQ: strong growth in
Slide 7: Financial Review
Financial Review Sameer Ralhan SVP and Chief Financial Officer Q4 2024 Results | February 4, 2025
Slide 8: Q4 2024 consolidated performance
Veralto / Q4 2024 consolidated performance YOY Q4 2023 Q4 2024 • Sales grew +4.4% year-over-year: Variance $ millions, except per share data ◦ Core sales* +4.6% Sales $1,288 $1,345 +4.4% ◦ Currency: -0.5% ◦ Acquisitions & divestitures: +0.3% Core Sales Growth* 1.7% 4.6% • Gross profit margin up 170
Slide 9: Water Quality Q4 and YTD 2024 performance
Water Quality / Q4 and YTD 2024 performance ($ millions, variances versus prior year period) Q4 SALES Q4 ADJUSTED OPERATING PROFIT * +3.7% +2.0% $811 $203 $207 Three months ended $782 Price YOY Change in Sales Q4 2023 Q4 2024 +1.6% Core Growth* +2.1% +4.9% 26.0% 25.5% Currency +1.3% -0.6% Adj. opera
Slide 10: Product Quality & Innovation Q4 and YTD 2024 performance
Product Quality & Innovation / Q4 and YTD 2024 performance ($ millions, variances versus prior year period) Q4 SALES Q4 ADJUSTED OPERATING PROFIT * +5.4% +8.1% $534 Three months ended $133 $506 Price +1.3% YOY Change in Sales Q4 2023 Q4 2024 $123 Core Growth* +1.1% +4.1% Currency +1.8% -0.3% 24.3% 2
Slide 11: Q4 2024 cash flow and financial position summary
Veralto / Q4 2024 key consolidated financial results ($ millions) Q4 2024 Cash from operations $285 Financial position summary: Capital expenditures $(22) • Strong annual cash generation Free cash flow* $263 Free cash flow conversion* 116% • Resilient, capital-light business model Year End 2024 • Gr
Slide 12: Q1 and FY 2025 guidance
Veralto / Q1 and FY 2025 guidance Annual Sales and Core Sales Growth* Q1 2025E FY2025E ~$5.3b $5.2b Core Sales $5.0b +LSD to MSD +LSD to MSD Growth* $4.9b Adjusted 24.0% to +25 to 50 Operating Profit 24.5% basis points Core sales +8.1% +2.6% +3.7% +LSD to Margin* growth* MSD Adjusted EPS* $0.84 to $
Slide 13: Closing Remarks
Closing Remarks Jennifer L. Honeycutt Q4 2024 Results | February 4, 2025
Slide 14: Well-positioned to drive compounding earnings and free cash flow growth
Veralto / Well-positioned to drive compounding earnings and free cash flow growth ATTRACTIVE SECULAR GROWTH DRIVERS PREMIER FINANCIAL PROFILE and DURABLE BUSINESS MODEL PROVEN VALUE CREATION PLAYBOOK SAFEGUARDING THE WORLD’S MOST VITAL RESOURCES™ 14 Q 4 2 0 2 4 R E S U L T S | 14
Slide 15: Appendix
Appendix Q4 2024 Results | February 4, 2025
Slide 16: 2025E Modeling Items
Veralto / 2025E Modeling Items Q1 2025E FY 2025E Core sales growth (non-GAAP) +LSD to +MSD +LSD to +MSD Sales assumptions Year-over-year Acquisitions/divestitures (1) ~flat ~flat Currency exchange rates impact on sales (2) ~(2%) ~(2%) Total sales growth (GAAP) +LSD +LSD Other key assumptions Corpora
Slide 17: Reconciliation of GAAP to Non-GAAP Financial Measures
VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE-MONTH PERIODS AND YEARS ENDED DECEMBER 31, 2024 AND DECEMBER 31, 2023
Slide 18: Table of Contents and Forward-Looking Statements Disclosure
TABLE OF CONTENTS Page 1 Sales Growth by Segment, Core Sales Growth (Decline) by Segment 3 Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio 4 Segment Sales, Operating Profit, Adjusted Operating
Slide 19: Sales Growth by Segment, Core Sales Growth by Segment
VERALTO CORPORATION Sales Growth by Segment, Core Sales Growth by Segment % Change Three-Month Period Ended December 31, 2024 vs. Comparable 2023 Period Segments Product Quality Total Company Water Quality & Innovation Total sales growth (GAAP) 4.4 % 3.7 % 5.4 % Impact of: Acquisitions/divestitures
Slide 20: Sales Growth by Segment, Core Sales Growth (Decline) by Segment
VERALTO CORPORATION Sales Growth by Segment, Core Sales Growth (Decline) by Segment % Change Three-Month Period Ended December 31, 2023 vs. Comparable 2022 Period Segments Product Quality Total Company Water Quality & Innovation Total sales growth (GAAP) 3.3 % 3.4 % 2.9 % Impact of: Currency exchang
Slide 21: Forecasted Core Sales Growth, Adjusted Operating Profit Margin, EPS and FCF Conversion
VERALTO CORPORATION Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components
Slide 22: Segment Sales, Operating Profit, Adjusted Operating Profit
VERALTO CORPORATION Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin, and Adjusted Operating Profit Margin ($ in millions) Three-Month Period Ended Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Sales (GAAP) Water Quality $ 811 $
Slide 23: Segment Sales, Operating Profit, Adjusted Operating Profit (continued)
VERALTO CORPORATION Segment Sales, Operating Profit, Adjusted Operating Profit, Operating Profit Margin, and Adjusted Operating Profit Margin ($ in millions) Three-Month Period Ended Year Ended December 31, December 31, December 31, December 31, 2024 2023 2024 2023 Other Operating Profit Adjustments
Slide 24: Net Earnings, Adjusted EBITDA and Margins: Q4 2024
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin, and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2024 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 227 Interest E
Slide 25: Net Earnings, Adjusted EBITDA and Margins: Q4 2023
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin, and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2023 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 200 Interest E
Slide 26: Net Earnings, Adjusted EBITDA and Margins: Year 2024
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin, and Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2024 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 833 Interest Expense, net 11
Slide 27: Net Earnings, Adjusted EBITDA and Margins: Year 2023
VERALTO CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin, and Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2023 Product Quality Water Quality & Innovation Other Total Company Net Earnings (GAAP) $ 839 Interest Expense, net 30
Slide 28: Trailing Twelve Month Adjusted EBITDA, Gross Leverage, Net Leverage
VERALTO CORPORATION Trailing Twelve Month Adjusted EBITDA, Gross Leverage, and Net Leverage ($ in millions) Three-Month Period Ended December 31, 2024 September 27, 2024 June 28, 2024 March 29, 2024 Net Earnings (GAAP) $ 227 $ 219 $ 203 $ 184 Interest Expense 28 27 30 28 Other Nonoperating (Income)
Slide 29: Other Non-GAAP Adjusted P&L Measures: Q4 2024
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2024 Net earnings for calculation of Diluted net Earnings diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sa
Slide 30: Other Non-GAAP Adjusted P&L Measures: Q4 2023
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2023 Net earnings for calculation of Diluted net Earnings diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sa
Slide 31: Other Non-GAAP Adjusted P&L Measures: Year 2024
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2024 Net earnings for calculation of Diluted net Earnings diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sales margin pro
Slide 32: Other Non-GAAP Adjusted P&L Measures: Year 2023
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2023 Net earnings for calculation of Diluted net Earnings diluted net earnings per Gross profit Operating Operating before Income earnings per common Sales Cost of sales margin pro
Slide 33: Other Non-GAAP Adjusted P&L Measures: Footnotes
VERALTO CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) A Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above): Three-Month Period
Slide 34: Operating Profit Margins and Year-Over-Year Core Operating Margin Changes
VERALTO CORPORATION Operating Profit Margins and Year-Over-Year Core Operating Margin Changes Segments Product Quality Total Company Water Quality & Innovation Three-Month Period Ended December 31, 2023 Operating Profit Margins (GAAP) 22.2 % 24.8 % 22.9 % Impact of acquisitions and dispositions (0.3
Slide 35: Cash Flow, Free Cash Flow and Conversion Ratio
VERALTO CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio, and Free Cash Flow to Net Earnings Conversion Ratio ($ in millions) Three-Month Period Ended Year Ended December 31, December 31, Year-over-Year December 31, December 31, Year-over-Year 2024 2023 Change 2024 20
Slide 36: Statement Regarding Non-GAAP Measures
VERALTO CORPORATION Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. M
Slide 37: Statement Regarding Non-GAAP Measures (continued)
VERALTO CORPORATION Statement Regarding Non-GAAP Measures • With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to “restructuring charges” and “other adjustments”, we exclude the impact of businesses owned for less than one yea
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