Vontier Corporation · NYSE:VNT
Vontier — Wolfe Research Transportation and Industrials Conference 2021
14 slides from Vontier's conference presentation, May 25, 2021
Slide 1: Wolfe Research Transportation and Industrials Conference
Wolfe Research Transportation and Industrials Conference May 25, 2021
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: Premier Industrial Technology Company
Premier Industrial Technology Company By Geography¹ RoW Europe 4% Key Financials 10% Market Leader in Mobility Technologies $2.7bn High-Growth 2020 Sales Markets (HGMs) Large, Global Installed Base with 16% GDP+ Historically Low Cyclicality North America Core Revenue Growth 70% Attractive Financial
Slide 5: 2021 Springboard to Multiyear Transformation
2021 Springboard to Multiyear Transformation – Strong execution in 1Q21 drove double-digit core revenue and earnings growth – Deeper deployment of VBS delivered strong margin expansion and FCF in 1Q21 – Liquidity > $1B and ample near-term M&A capacity – Profitable growth initiatives are on track, po
Slide 6: $27bn Market with Large Runway for Earnings Growth
$27bn Market with Large Runway for Earnings Growth Total Addressable Market1 | Estimated Market Growth2 Retail / Commercial Fueling $7bn | MSD Expand Footprint EV Workflow Software in HGMs Infrastructure Smart City Solutions Telematics $8bn | MSD $5bn | HSD Intersection IoT Devices Automation Adv. T
Slide 7: Vontier Value Creation Flywheel
Vontier Value Creation Flywheel Core Revenue Margin Expansion Growth 25-50 bps core OMX GDP+ Growth Investment Grade Through M&A Style Balance Sheet >100% FCF conversion to Fund Growth Note: Represents general target measures Deploying Proven Model for Compounding Earnings Growth 7
Slide 8: Vontier | A Compelling Investment Opportunity
Vontier | A Compelling Investment Opportunity Industrial technology leader with outstanding brands and strong installed base levered to attractive $27bn mobility market Strong performance and limited cyclicality, supported by recurring sales Robust free cash flow generation and investment grade styl
Slide 9: NION TIER
NION TIER
Slide 10: Supplemental Reconciliation Data
Supplemental Reconciliation Data 10
Slide 11: 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) (1.8)
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 Year Ended $ in millions December 31, 2019 December 31, 2020 Revenue (GAAP) $ 2,772.1 $ 2,704.6 Operating Profit (GAAP) $ 563.1 $ 468.2 Amortization of acquisition-related intangible assets 31.8 29.0
Slide 13: 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 Year Ended $ in millions December 31, 2019 December 31, 2020 % Change Operating Cash Flows (GAAP) $ 545.2 $ 691.3 26.8 % Less: Purchases of property, plant & equipment (capital expenditures) (38.
Slide 14: Forecasted Adjusted Diluted Net Earnings Per Share
FORECASTED ADJUSTED DILUTED NET EARNINGS PER SHARE Year Ended December 31, 2021 Low End High End Forecasted Diluted Net Earnings per Share $ 2.25 $ 2.35 Anticipated amortization of acquisition-related intangible assets 0.18 0.18 Anticipated restructuring costs 0.12 0.12 Transaction- and deal-related
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