Slide 1: Third Quarter 2024 Earnings Release
Third Quarter 2024 Earnings Release October 30, 2024
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 statements regarding anticipated financial results, global and regional economic conditions, industry trends, geopolitical events, our plans to separate into two indep
Slide 3: Q3 2024 Highlights
Q3 2024 Highlights Benefiting from Durable & Secular Growth Drivers Strong earnings & FCF • +3% revenue growth showcasing consistent performance performance • +14% adj. EPS growth and +12% FCF growth Benefiting from long-term • Positive orders growth all segments, +DD orders growth in PT durable gro
Slide 4: Q3 2024 Financial Highlights
Q3 2024 Financial Highlights Strong Operational Execution Drives Results Q3 2024 YTD 2024 What We Are Seeing • +HSD ARR growth again in Q3 Revenue $1.54B $4.61B REVENUE & • +HSD HW orders growth Total Growth +3% +3% GROWTH • Ramping supply chain / capacity to support Core Growth +1% +1% robust deman
Slide 5: Q3 2024 Segment Highlights - IOS & AHS
Q3 2024 Segment Highlights - IOS & AHS Durable Recurring Revenue Businesses Drive Growth and Margin Expansion TOTAL IOS + AHS INTELLIGENT OPERATING ADVANCED HEALTHCARE SOLUTIONS SOLUTIONS +4% +3% +8% ($ in millions) Total Growth Total Growth Total Growth +4% +2% +9% Core Growth Core Growth Core Grow
Slide 6: Q3 2024 Segment Highlights - PT
Q3 2024 Segment Highlights - PT Orders Growth Driven by Stabilizing Demand Trends PRECISION TECHNOLOGIES PT ORDERS & REVENUE TRENDS ~Flat ($ in millions) Total Growth (4)% Core Growth Record bookings, Orders decline, backlog Historically high excess backlog builds burn down late '22 thru '23 Stabili
Slide 7: Key Regional Trends
Key Regional Trends Revenue Growth Driven by HGMs; Orders Growth All Regions North America Western Europe Asia Q3 2024 Core Orders Growth Q3 2024 Core Orders Growth Q3 2024 Core Orders Growth +LDD +Mid-teens Up slightly Q3 2024 Core Revenue Growth Q3 2024 Core Revenue Growth Q3 2024 Core Revenue Gro
Slide 8: Q4 and FY 2024 Outlook
Q4 and FY 2024 Outlook Raising Our Full Year Adj. EPS Guidance Range Q4 2024 FY 2024 What We Are Expecting Revenue $1.63B to $1.65B $6.24B to $6.26B • Strong ARR growth continues REVENUE & Total Growth ~3% ~3% GROWTH • Positive HW orders trend continues Core Growth ~1% ~1% • Proactive restructuring
Slide 9: Framing 2025
Framing 2025 Stabilizing Demand Trends Expected to Drive Improvement in Core Growth Continued momentum in recurring software, services and healthcare consumables HW orders trajectory supports improvement in 2025 growth despite certain geopolitical and macro uncertainty Accelerating innovation and NP
Slide 10: Fortive Evolution
Fortive Evolution Accelerating Progress • Execution Drives 2024 Performance • Strategically Well-Positioned for 2025 • Value-Enhancing Actions On Track 10
Slide 11: Appendix & Supplemental Reconciliation Data
@ FORTIVE Appendix & Supplemental Reconciliation Data
Slide 12: Adjusted Gross Profit and Adjusted Gross Profit Margin
ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN Three Months Ended Nine Months Ended $ in millions September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Revenue (GAAP) $ 1,534.6 $ 1,494.5 $ 4,611.5 $ 4,481.6 Gross Profit (GAAP) $ 921.3 $ 893.0 $ 2,753.8 $ 2,646.6 Acquisi
Slide 13: Adjusted Operating Profit & Adjusted Operating Profit Margin (Three Months)
ADJUSTED OPERATING PROFIT & ADJUSTED OPERATING PROFIT MARGIN Three Months Ended September 27, 2024 Three Months Ended September 29, 2023 $ in millions Intelligent Precision Advanced Corporate Total Total IOS + Intelligent Precision Advanced Corporate Total Total IOS + Total Fortive Operating Technol
Slide 14: Adjusted Operating Profit & Adjusted Operating Profit Margin (Nine Months)
ADJUSTED OPERATING PROFIT & ADJUSTED OPERATING PROFIT MARGIN Nine Months Ended September 27, 2024 Nine Months Ended September 29, 2023 $ in millions Intelligent Precision Advanced Corporate Total Intelligent Precision Advanced Corporate Total Year over Operating Technologies Healthcare Fortive Opera
Slide 15: Adjusted Net Earnings and Adjusted Diluted Net EPS
ADJUSTED NET EARNINGS AND ADJUSTED DILUTED NET EPS Three Months Ended Nine Months Ended $ in millions, except per share amounts September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Per share value Per share value Per share value Per share value Net Earnings and Net Earnings Pe
Slide 16: Forecasted Adjusted Diluted Net EPS
FORECASTED ADJUSTED DILUTED NET EPS Three Months Ending Twelve Months Ending December 31, 2024 December 31, 2024 Low High Low High Forecasted Diluted Net Earnings Per Share (GAAP) $ 0.72 $ 0.75 $ 2.47 $ 2.50 Anticipated pretax amortization of acquisition related intangible assets 0.33 0.33 1.29 1.29
Slide 17: Free Cash Flow Conversion Ratio
FREE CASH FLOW CONVERSION RATIO (in millions) Three Months Ended Nine Months Ended September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Operating Cash Flows (GAAP) $ 459.0 $ 411.4 $ 1,024.6 $ 906.8 Less: purchases property, plant & equipment (capital expenditures) (GAAP) (27.8
Slide 18: Core Revenue Growth
CORE REVENUE GROWTH Components of Revenue Growth Three Months Ended September 27, 2024 Nine Months Ended September 27, 2024 Total Fortive Total Revenue Growth (GAAP) 2.7 % 2.9 % Core (Non-GAAP) 1.1 % 1.2 % Acquisitions and divestitures (Non-GAAP) 1.6 % 2.3 % Impact of currency translation (Non-GAAP)
Slide 19: Adjusted Effective Tax Rate
ADJUSTED EFFECTIVE TAX RATE Three Months Ended Nine Months Ended $ in millions September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Earnings before income taxes $ 232.2 $ 257.1 $ 694.9 $ 713.3 Income tax expense (10.6) (39.1) (70.8) (112.7) Effective tax rate (GAAP) 4.6 % 15.2
Slide 20: (2) FORTIVE
(2) FORTIVE