Veralto Corp · NYSE:VLTO
Veralto — Investor Day (September 2023)
78 slides from Veralto's investor day presentation, Sep 6, 2023
Slide 1: Safeguarding the World’s Most Vital Resources
Safeguarding the World’s Most Vital Resources Investor and Analyst Presentation | September 6, 2023
Slide 2: Disclaimer
Disclaimer Certain statements included or incorporated by reference in this presentation are “forward-looking statements” within the meaning of the United States federal securities laws. All statements other than historical factual information are forward-looking statements, including, without limit
Slide 3: Agenda
Agenda Jennifer L. Honeycutt 1 Introduction to Veralto President and Chief Executive Officer Melissa Aquino 2 Water Quality SVP, Water Quality Mattias Byström 3 Product Quality & Innovation SVP, Product Quality & Innovation Sameer Ralhan 4 Financial Overview SVP, Chief Financial Officer Jennifer L.
Slide 4: Introduction to Veralto
Introduction to Veralto Jennifer L. Honeycutt Investor and Analyst Presentation | September 6, 2023
Slide 5: A premier technology leader in water and product quality
Veralto / A premier technology leader in water and product quality 1 A LEADER IN WATER & PRODUCT QUALITY 2 PREMIER FINANCIAL PROFILE 3 PROVEN VALUE CREATION PLAYBOOK 2020-2022 average MSD core ~80% of sales in water, food, pharma Durable sales growth sales growth* Strong Danaher heritage 57% recurri
Slide 6: A leader in water and product quality
Veralto / A leader in water and product quality WATER QUALITY PRODUCT QUALITY & INNOVATION Water Analytics Marking & Coding ~60% Water Treatment ~$5b ~40% Packaging & Color in 2022 sales Strong Global Brands | Long Track Record of Innovation | Commercial Excellence 2023 INVESTOR DAY 6| 6
Slide 7: Making a positive impact on the world
Veralto / Making a positive impact on the world ...people we help ensure …detailed and accurate codes Safe Drinking Water 3.4b have safe drinking water everyday (~40% of the Product Integrity ~10b marked daily to help our customers maintain product world’s population) authenticity and traceability …
Slide 8: End market tailwinds favorable to growth
Veralto / End market tailwinds favorable to growth PRODUCT QUALITY & WATER QUALITY INNOVATION Water scarcity Consumer safety Water quality Omnichannel buying Contaminant regulation Packaging proliferation Climate change & severe weather events Digitization Sustainability Sustainability Strong Long-T
Slide 9: High quality businesses with durable business model
Veralto / High quality businesses with durable business model A LEADER IN ATTRACTIVE END MARKETS UNITED BY A COMMON BUSINESS MODEL Attractive end markets with strong secular Mission critical technologies integral to growth drivers customers’ daily operations (OPEX vs. CAPEX) Technologies at th
Slide 10: Premier financial profile
Veralto / Premier financial profile 2022 KEY FINANCIAL RESULTS $4.9b 8% 57% 24% 99% core sales gross profit adjusted free cash flow total sales growth* margin EBITDA %* conversion* Consistent sales growth Strong margins Robust cash generation *See appendix for reconciliations to non-GAAP measu
Slide 11: Danaher Business System (DBS)
Veralto / Danaher Business System (DBS) DBS Has Been Integral to Driving Performance for Veralto 11 | 11 2023 INVESTOR DAY
Slide 12: Evolving to the Veralto Enterprise System (VES)
Veralto / Evolving to the Veralto Enterprise System (VES) 4 core values anchor who we are and how we serve fueled by 4 disciplines all powered by VES VES is Underpinned by DBS Principles, Grounded in Veralto’s Values 12 | 12 2023 INVESTOR DAY
Slide 13: Proven long-term value creation playbook
Veralto / Proven long-term value creation playbook SEIZE OPPORTUNITIES SCALE & DIFFERENTIATE Emerging regulations New products New funding Operational efficiency Technology breakthroughs Commercial reach CURATE PORTFOLIO FORTIFY LEADERSHIP Strategic acquisitions Consumables Strategic partnerships Cu
Slide 14: Running the Veralto playbook
Veralto / Running the Veralto playbook Core Revenue Growth Improve Cost Gross G&A + Structure Margins Margin Expansion + Reinvest For Strong Free Cash Flow R&D S&M Growth + Acquisitions Accelerate Margins Core = & Core Growth Growth OMX COMPOUNDING EPS GROWTH & RETURNS Reinvesting Cash Flow to Drive
Slide 15: Strategic M&A criteria
Veralto / Strategic M&A criteria MARKET AND COMPANY AND VALUATION Secular growth drivers Competitive market position Focus on ROIC Existing and adjacent Strong brand / channel VES opportunities markets with right to play Recurring sales Sustainability Fragmented Higher margin bus
Slide 16: World-class enterprise built and strengthened over time
Veralto / World-class enterprise built and strengthened over time ADJUSTED ADJUSTED OPERATING PREMIER SALES OPERATING PROFIT* PROFIT MARGIN* FINANCIAL PROFILE Financial data below based on 3-year averages from 2020-2022 $4.9b MSD core sales growth* $1.1b Mid- 57% recurring sales 20’s ~9.5% ~11%
Slide 17: Executive leadership team
Veralto / Executive leadership team Jennifer Honeycutt Sameer Ralhan* Sylvia Stein* Paxton McVoy* Lesley Beneteau President and CEO SVP, CFO SVP, General Counsel Chief Information Officer SVP, Human Resources DIVERSE & EXPERIENCED 60% from Danaher 3 decades | 100+ years of combined Danaher experienc
Slide 18: What you will hear today
Veralto / What you will hear today PREMIER BUSINESSES with MARKET LEADING TECHNOLOGY & INNOVATION ATTRACTIVE SECULAR GROWTH DRIVERS and DURABLE BUSINESS MODEL PROVEN VALUE CREATION PLAYBOOK Premier Businesses in Attractive End Markets Powered by VES 18 | 18 2023 INVESTOR DAY
Slide 19: Water Quality
Water Quality Melissa Aquino SVP, President of Water Quality 19
Slide 20: A global leader in water analytics and water treatment
Water Quality / A global leader in water analytics and water treatment 2020-2022 AVERAGE 2022 SALES COMPOSITION $2.9b 5.7% 56% 23% Sales by application Adj. operating sales in 2022 core sales growth* recurring sales 60% 40% profit margin* Water Analytics Water Treatment WATER ANALYTICS WATER TREATME
Slide 21: Well-positioned in the most attractive areas of water quality
Water Quality / Well-positioned in the most attractive areas of water quality Environmental Municipal Use Municipal Environmental Environmental Mgmt. / Drinking Water Commercial & Industrial Wastewater Water Discharge Water Resources Analytics Water / Wastewater & Environmental Testing Water / Waste
Slide 22: Technologies and solutions at the high end of value continuum
Water Quality / Technologies and solutions at the high end of value continuum ANALYTICS & SMART WATER Value to Customer TREATMENT Application expertise Technology and innovation Commercial execution primarily capex primarily opex Pipes Distribution Pumps Filtration Treatment Analytics Smart Wa
Slide 23: Water analytics overview
Water Quality / Water analytics overview CUSTOMER TYPES APPLICATION ENVIRONMENTS PRODUCT OFFERINGS Municipal Laboratory Analytical solutions Industrial Field Lab & portable instruments Commercial Process Chemistries Environmental agencies Central data management Digital & sof
Slide 24: Pike’s Peak innovation center
Water Quality / Pike’s Peak innovation center EXPANSION TO ACCOMMODATE GROWTH 90,000 square feet built in 2018 50% FASTER TIME-TO-MARKET Obeya rooms with cross-functional teams together Integrated VES growth tools Rapid prototyping and compliance testing Simultaneous product and process optimization
Slide 25: Reinforcing our technology leadership
Water Quality / Reinforcing our technology leadership +5X increase in customers using digitally-enabled instrumentation since 2018 50% faster time to market Continuously Enhancing Customer Solutions to Solve Complex Water Problems 2023 INVESTOR DAY 25 | 25
Slide 26: Commercial execution drives growth
Water Quality / Commercial execution drives growth COMMERCIAL LAUNCH EXCELLENCE (LEX) LAUNCHED Q2 2021 1ST SNEAK PEAK first to know | teaser videos 1ST VIRTUAL SHOWCASE NEW VIRTUAL SALES TOOLS product simulator | virtual demos Commercial Excellence Tools Accelerate New Product Penetration 26 | 26 20
Slide 27: Water treatment overview
Water Quality / Water treatment overview CUSTOMER TYPES TREATMENT TYPES TREATMENT SOLUTIONS Municipal Source water Water treatment chemistries Industrial Pretreatment UV water systems Commercial Boiler and cooling process Membrane filtration Wastewater Digital monitoring and ap
Slide 28: Application expertise + regulations spur growth
Water Quality / Application expertise + regulations spur growth ONE OF THE WORLD’S LARGEST UV DRINKING WATER FACILITIES New York City capacity to treat 56 TrojanUV systems installed 2b gallons of Meets the NYC Department of water per day Environmental Protection treatment requirements Our Trojan UV
Slide 29: Application expertise + sustainability goals create growth
Water Quality / Application expertise + sustainability goals create growth ChemTreat Helps Brewery Achieve 2025 Sustainability Goals 15m 500m 22% gallons saved gallons saved water reduction in 2021 over 9 years across 10 locations Identified water reduction opportunities Increased efficiency Improve
Slide 30: Application expertise + VES growth tools drive growth
Water Quality / Application expertise + VES growth tools drive growth CUSTOMER PROBLEM FLEXPRO® MARKET INSIGHT… treatments using zinc or phosphorus causing corrosion, 6-8x better aquatic impact Reduces corrosion 30% microbiological growth sales CAGR Prevents algae over past 3 years AFTER FLEXP
Slide 31: Well-positioned to drive long-term growth
Water Quality / Well-positioned to drive long-term growth SECULAR GROWTH DRIVERS HOW WE WIN Deep water chemistry and biology expertise Water quality (safe/affordable water) Application Widest number of parameters Expertise Technical sales expertise Water scarcity (increase in usage) Increasing
Slide 32: Integral and mission critical to customers
Water Quality / Integral and mission critical to customers LOW OPEX vs. REGULATORY CYCLICALITY CAPEX OPPORTUNITIES low cost, high-value add increasing regulatory standards recurring consumable sales technology & solutions and testing requirements from extensive installed base mission critical to ope
Slide 33: Long-term value creation
Water Quality / Long-term value creation 2002 profile 2022 profile ~$500m sales ~10% CAGR $2.9b sales >20% ROIC High-teens operating profit margin LOW-20’s Adj. operating profit margin Pre-2002 2004 2006 2008 2010 2012 2014 2016 2022 Track Record of Strategic Growth, Margin Expansion and Compounding
Slide 34: Water Quality Summary
Water Quality / Summary A GLOBAL LEADER in WATER ANALYTICS & TREATMENT SOLUTIONS TECHNOLOGY at the HIGH END of the VALUE CONTINUUM WE AIM to SOLVE the WORLD’S MOST COMPLEX WATER CHALLENGES 34 | 34 2023 INVESTOR DAY
Slide 35: Product Quality & Innovation (PQI)
Product Quality & Innovation (PQI) Mattias Byström SVP & President, Product Quality & Innovation 35
Slide 36: A global leader in workflow solutions
PQI / A global leader in workflow solutions 2020-2022 AVERAGE 2022 SALES COMPOSITION $2.0b 3.5% 59% 25% Sales by application Adj. operating sales in 2022 core sales growth* recurring sales profit margin* 70% 30% Marking & Coding Packaging & Color PACKAGING & COLOR MARKING & CODING A global leader in
Slide 37: The choice of industry leaders
PQI / The choice of industry leaders 85% 75% 60% 45% of the top 20 of the top 25 of the top 10 of the top 20 global consumer global global chemical global retailers in packaged goods pharmaceuticals brands the U.S. brands brands Note: Management estimates Strong Presence with Consumer Goods Companie
Slide 38: Well-positioned across the packaging value chain
PQI / Well-positioned across the packaging value chain Packaging & Color Marking & Coding Brand Owners Designers, Agencies Pre-Media Services Production/Converters Filling Plants Retail Shelf Inline Marking & Packaging Strategy Packaging Design Production Preparation Packaging Production Product Ass
Slide 39: Packaging & Color overview
PQI / Packaging & Color overview CUSTOMER TYPES APPLICATION ENVIRONMENTS DIGITAL SOLUTIONS Brand owners Digital management Color strategy & management Print service providers Cloud-based Packaging workflow software Consumer goods manufacturers Remote monitoring 3D packaging design
Slide 40: Innovative packaging design software
PQI / Innovative packaging design software Our Solutions Help Simplify a Complex Process with Diverse Stakeholders 40 | 40 2023 INVESTOR DAY
Slide 41: Digital capabilities drive growth
PQI / Digital capabilities drive growth Project Manager Data supplier Agency Approvers Production 50% reduction in design process Create Brief Design Approve Produce (180 days down to 90 days) 60% fewer revisions 50% less labor Note: Management estimates Streamlined Workflow by 50% with ESKO WebCent
Slide 42: Marking and Coding overview
PQI / Marking and Coding overview CUSTOMER TYPES APPLICATION ENVIRONMENTS PRODUCTS & SOLUTIONS Brand owners Digital management Continuous inkjet printers Print service providers Cloud-based Laser marking systems Consumer goods manufacturers Remote monitoring VideojetConnect™ Suite
Slide 43: Leading technologies in marking and coding
PQI / Leading technologies in marking and coding TRACEABILITY BRAND PROTECTION Ability to recall Ability to ensure authenticity REGULATION CUSTOMIZATION Ensure compliance Variability and complexity in packaging Solutions for a Variety of Substrates to Help Customers Meet Complex Challenges 43 | 43 2
Slide 44: New high-performance laser marking solution
PQI / New high-performance laser marking solution NEW VIDEOJET 3350 SMART FOCUS LASER MARKING SYSTEM prints up to Launched Q2 2023 2K characters per second Connected solution Marks complex codes at high speeds Virtually unlimited font, code & graphic options VideojetConnect™ Remote Service o
Slide 45: Remote service capabilities drive growth
PQI / Remote service capabilities drive growth installed base in the TENS of THOUSANDS Connected to the ‘cloud’ – real-time data Printer health monitoring Enhanced predictive analytics Intervention guidance Reduced customer downtime Rapid line recovery Advanced Connectivity and Software
Slide 46: Well-positioned to drive long-term growth
PQI / Well-positioned to drive long-term growth SECULAR GROWTH DRIVERS HOW WE WIN Consumer safety High value new solutions - faster Innovation Investing in digital solutions Omnichannel buying Packaging proliferation Connected One of the largest connected installed bases Solutions Remote sol
Slide 47: Integral and mission critical to customers
PQI / Integral and mission critical to customers LOW OPEX vs. REGULATORY CYCLICALITY CAPEX OPPORTUNITIES low cost, high-value add secular drivers and technology solutions increasing regulatory recurring sales pull-through requirements mission critical to operations 59% <1% ~90% consumables are <1% o
Slide 48: Long-term value creation
PQI / Long-term value creation 2002 profile 2022 profile ~$300m sales ~10% CAGR $2.0b sales High-Teens ROIC High-Teens operating profit margin Mid-20’s adj. operating profit margin* Pre-2002 2004 2006 2008 2010 2012 2014 2016 2022 Track Record of Strategic Growth, Margin Expansion and Compounding Re
Slide 49: PQI Summary
PQI / Summary A LEADING GLOBAL PLAYER in DESIGN SOFTWARE, COLOR AUTHORITY and IN-LINE MARKING PROTECTING the INTEGRITY of FOOD, PHARMACEUTICALS and BRANDS ADVANCED, DIGITAL CUSTOMER WORKFLOW SOLUTIONS 49 | 49 2023 INVESTOR DAY
Slide 50: Financial Overview
Financial Overview Sameer Ralhan SVP & Chief Financial Officer 50
Slide 51: Premier financial profile
Veralto / Premier financial profile MSD long-term core sales growth* across both segments | secular growth drivers durable through economic cycles high recurring sales | stable end markets strong margins & robust cash generation differentiated value proposition | asset-light model flexibilit
Slide 52: Steady long-term sales growth profile
Veralto / Steady long-term sales growth profile Growth Drivers Historical Sales Growth Secular trends Total Growth Including M&A Core Growth* Acquisitions Innovation 10% Commercial excellence 8% Geographic expansion 4% 5% Real GDP Growth: 3% Resilient Business Model Modest sales decline in financial
Slide 53: Attractive margin profile and strong free cash flow conversion
Veralto / Attractive margin profile and strong free cash flow conversion 2022 KEY FINANCIAL RESULTS 57% 24% <1% 5% 99% gross profit adjusted capex as % of R&D as % of free cash flow margin EBITDA %* sales sales conversion* High margin reflects positioning in Asset-light business model Strong, consis
Slide 54: Recent financial performance
Veralto / Recent financial performance $ millions $4,870 Highlights $4,700 $4,700 $4,348 $4,348 Secured supply chain Sales 8% 8% $2,478 Core Sales Growth Proactive pricing actions 4% 5% average core sales growth* -2% from 2020-2022 2020 2021 2022 1H 2023 Expanded margins GAAP operating profi
Slide 55: Separation considerations
Veralto / Separation considerations INCREMENTAL STAND-ALONE COSTS CAPITAL STRUCTURE AT SEPARATION ~$2.6b gross debt ~$70m of incremental stand-alone costs: ~2.2x gross leverage* ~140 bps impact to operating profit margin ~$250m cash on hand ~70 bps impact to Water Quality and PQI ~2.0x net l
Slide 56: Capital allocation framework
Veralto / Capital allocation framework Bias toward strategic acquisitions that create long-term shareholder value Maintain flexibility to return capital to shareholders Capital deployment mix to vary in any given year Well Positioned to Maintain Investment Grade Profile With Bias Toward Acqu
Slide 57: Long-term value creation algorithm and modeling framework
Veralto / Long-term value creation algorithm and modeling framework VALUE CREATION ALGORITHM LONG-TERM MODELING FRAMEWORK Core Revenue Growth MSD core sales growth + Margin Expansion 30% to 35% incremental OP margin + Strong Free Cash Flow ~100% free cash flow conversion + Acquisitions Disciplined c
Slide 58: World-class enterprise built and strengthened over time
Veralto / World-class enterprise built and strengthened over time ADJUSTED ADJUSTED PREMIER SALES OPERATING PROFIT* OPERATING MARGIN* FINANCIAL PROFILE Financial data below based on 3-year averages from 2020-2022 $4.9b MSD core sales growth* $1.1b Mid- 57% recurring sales 20’s ~9.5% ~11% CAGR CA
Slide 59: Conclusions
Conclusions Jennifer L. Honeycutt Investor and Analyst Presentation | September 6, 2023
Slide 60: A premier technology leader in water and product quality
Veralto / A premier technology leader in water and product quality 1 A LEADER IN WATER & PRODUCT QUALITY 2 PREMIER FINANCIAL PROFILE 3 PROVEN VALUE CREATION PLAYBOOK 2020-2022 average MSD core ~80% of sales in water, food, pharma Durable sales growth sales growth* Strong Danaher heritage 57% recurri
Slide 61: Appendix
Appendix Investor and Analyst Presentation | September 6, 2023
Slide 62: Jennifer L. Honeycutt
Jennifer L. Honeycutt PRESIDENT AND CHIEF EXECUTIVE OFFICER As President and CEO, Jennifer leads Veralto with a strong vision for the future. She works closely with the executive team and Veralto business leaders to build a vibrant, inclusive culture, drive operational excellence through the Veralto
Slide 63: Sameer Ralhan
Sameer Ralhan SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER As SVP and Chief Financial Officer, Sameer is responsible for Veralto’s financial strategy including capital deployment, portfolio development, and financial execution to enable long-term growth and value creation. In addition to leadin
Slide 64: Melissa Aquino
Melissa Aquino SENIOR VICE PRESIDENT AND GROUP EXECUTIVE OF WATER QUALITY As SVP and Group Executive of Veralto’s Water Quality segment, Melissa and her team help customers holistically address water safety and scarcity, responsible water management, and climate change. Melissa brings more than 20 y
Slide 65: Mattias Byström
Mattias Byström SENIOR VICE PRESIDENT AND GROUP EXECUTIVE OF PRODUCT QUALITY & INNOVATION As SVP and Group Executive of the Product Quality and Innovation segment, Mattias and his team help customers ensure product quality, freshness, and consistency and advance packaging design, quality, and go-to-
Slide 66: Reconciliations of Non-GAAP Metrics
APPENDIX Reconciliations of Non-GAAP Metrics This presentation contains information regarding the Company’s financial results that is calculated and presented on the basis of methodologies other than in accordance with accounting principles generally accepted in the United States (“GAAP”). These non
Slide 67: Statement Regarding Non-GAAP Measures
Statement Regarding Non-GAAP Measures Each of the non-GAAP measures included in this presentation 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. Managem
Slide 68: Sales Growth, Core Sales Growth by Segment
Sales Growth (Decline), Core Sales (Decline) by Segment, Average Sales Growth and Average Core Sales Growth by Segment Three-Month Period Ended ‘earEnded ——ThfeeMonth Period Ended g- \sonth Decciabes St, September 30, December 31, December Sl, Period Ended 2021 April 1, 2022 Tuly 1, 2022 2022 2022 2
Slide 69: Sales Growth
Sales Growth Veralto. Avi Sales Growth and Av: Core Sales Growth by Product Quality & Innovation Veralto Impact of Impact of Total sales Total sales 7: Core sale: ‘Total sale: re Core sales ERR, fatescmres ESRD, fitectares_rates@other (oom CAaP) — ERAP)_idvetures rates ether (nc CAAP) 100% (65)% —%
Slide 70: Year Average Year Average Year Average Year Average
2 Year Average 3 Year Average 5 Year Average 10 Year Average Veralto. 2023 INVESTOR DAY | 70
Slide 71: Veralto.
Veralto. Sales (GAAP) ‘Water Quality Product Quality & Innovation Total Company Operating Profit (GAAP) Water Quality Product Quality & Innovation Other Total Company Amortization of Intangible Assets (GAAP) ‘Water Quality Product Quality & Innovation Total Company Other Operating Profit Adjustments
Slide 72: Operating Profit Margin (GAAP)
Operating Profit Margin (GAAP) Water Quality Product Quality & Innovation Total Company Adjusted Operating Profit Margin (Non-GAAP)* Water Quality Product Quality & Innovation Total Company Refer to Footnotes A, B and D on page 77 for descriptions of the components of Other Operating Profit Adjustme
Slide 73: Net Earnings, Operating Profit, Adjusted EBITDA and Adjusted EBITDA Margin
et Earnings, Operating Profit, Adjusted EBITDA and Adjusted EBITDA Margin (Sin millions) ‘Three-Month Period . YearEnded Year Ended Three-Month Period Ended Year Ended Ended Period December December April, er December December March 31, June 30, Ended June 31,2020 31,2021 022" July 1,2022__30,2022_—
Slide 74: Veralto.
Veralto. Three Month Period Ended December 31. September 30, June 30,2023 __ March 31.2023 2022 3022 Net Earnings (GAAP) $ 209 $ 225 $ 216 $ 218 Interest. Net * _— _— _— _ Other Nonoperating (Income) Expense 4 _ (Oo) _ Income Taxes 66 67 79 oT Operating Profit GAAP) $ 289 § 292 $ 294 S 285 Other Ope
Slide 75: Net Earnings per Common Share and Adjusted Net Earnings per Common Share
Net Earnings per Common Share and Adjusted Net Earnings per Common Share 75 | 75 2023 INVESTOR DAY
Slide 76: Amortization of acquisition-related intangible assets
Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the ‘amortization line item above): YearEnded Year Ended Year Ended Six-Month December 31, December 31, December 31, Period Ended 2020 2
Slide 77: Veralto.
Veralto. The number of Veralto shares assumed in each period is based on the number of diluted common shares used in Danaher Corporation's diluted net earnings per common share for the six-month period ended Inne 30, 2023, assuming a distribution ratio of one share of Veralto common stock for every
Slide 78: Cash Flow, Free Cash Flow and Free Cash Flow to Net Earnings Conversion Ratio
Cash Flow, Free Cash Flow and Free Cash Flow to Net Earnings Conversion Ratio (Sin millions) Six-Month Period Ended ‘Year Ended Sune 30, 2023 Suly 1, 2022 Decor Deena Deere a Total Cash Flows: Total cash provided by operating activities (GAAP) $ 457 $ 276 $ 870 $ $96 $ 1,001 Total cash used in inves