Slide 1: Second Quarter 2021 Earnings Release
Second Quarter 2021 Earnings Release August 6, 2021 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: Q2 2021 Summary
Q2 2021 Summary Strong execution delivers another quality beat and raise – Adj. EPS $0.61, +69% driven by better-than-expected Retail Solutions and Auto Repair (largely non-EMV) growth and core OMX – Core revenue growth 32.7% – Accelerated core revenue growth excluding EMV + >35% – Strong HGM core r
Slide 5: DRB Overview
DRB Overview Market leading integrated technology provider of point of sale, workflow software, and control solutions to the attractive car wash industry DRB Revenue Market leading position in attractive ~$900M(1) car Profile Key KPIs Other wash systems market, growing +MSD 10% ~$170M Attractive fin
Slide 6: Q2 2021 Financial Performance
Q2 2021 Financial Performance Summary of Key Financial Items • Core revenue growth: 32.7% • GAAP OP Margins -20 bps • GAAP EPS of $0.48 • FX: 3.1% • Adj. Core OMX +450 bps • 23.8% Adj. Effective Tax Rate ("ETR") • Total growth: 35.8% Note: Adjusted Operating Profit Margin, Adjusted Core Operating Ma
Slide 7: Q2 2021 Free Cash Flow Detail
Q2 2021 Free Cash Flow Detail Adj. Free Cash Flow ($M) and FCF • Q2 2021: Conversion (%) 258% – Free Cash Flow: $43M, -75%; conversion of 52% of GAAP Net Earnings – Adj. Free Cash Flow: $45M, -72%; conversion of 43% of Adj. Net Earnings, driven primarily by an extra Federal tax payment due to spin d
Slide 8: Performance by Platform
Performance by Platform Mobility Technologies Diagnostics & Repair Technologies Revenue Revenue +29.4% • Growth driven +57.6% • Growth driven by Core +25.6% by increased Core +57.2% continued strong demand for net franchisee Retail Solutions additions, same and HGMs store sales, and Matco Expo • GVR
Slide 9: Thoughts on Q3 and FY21
Thoughts on Q3 and FY21 Q3 Considerations – Anticipate core revenue growth of -1% to 0% – Expect adj. core OMX of -25 bps, excluding restructuring costs – Expect adj. EPS of $0.71 - $0.74 – ETR ~24% FY21 Considerations – Anticipate core revenue growth of +HSD – Expect adj. core OMX of >125 bps, excl
Slide 10: Supplemental Reconciliation Data
Supplemental Reconciliation Data 10 10
Slide 11: 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 Six Months Ended $ in millions June 26, 2020 July 2, 2021 June 26, 2020 July 2, 2021 Revenue (GAAP) $ 533.7 $ 724.6 $ 1,142.9 $ 1,432.0 Operating Profit (GAAP) $ 90.0 $ 121.0 $ 111
Slide 12: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended Six Months Ended July 2, 2021 July 2, 2021 2020 Adjusted Operating Profit Margin (Non-GAAP) 17.1% 17.4% Core (Non-GAAP) 4.5% 4.2% Currency exchange rates (Non-GAAP) (0.7)% (0.5)% 2021 Adjusted Operating Profit Margin (No
Slide 13: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS Three Months Ended Six Months Ended $ in millions June 26, 2020 July 2, 2021 June 26, 2020 July 2, 2021 Net Earnings (GAAP) $ 68.4 $ 82.3 $ 64.2 $ 173.3 Amortization of acquisition-related intangible assets 7.2 7.6 14.5 15.2 Restructuring costs
Slide 14: 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 Six Months Ended June 26, 2020 July 2, 2021 June 26, 2020 July 2, 2021 Diluted Net Earnings per Share (GAAP) $ 0.41 $ 0.48 $ 0.38 $ 1.02 Amortization of acquisition-related intangible asset
Slide 15: Forecasted Adjusted Diluted Net Earnings Per Share
FORECASTED ADJUSTED DILUTED NET EARNINGS PER SHARE Three Months Ended Year Ended October 1, 2021 December 31, 2021 Low End High End Low End High End Forecasted Diluted Net Earnings Per Share $ 0.63 $ 0.66 $ 2.39 $ 2.44 Anticipated amortization of acquisition-related intangible assets 0.04 0.04 0.18
Slide 16: 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 Six Months Ended $ in millions June 26, 2020 July 2, 2021 % Change June 26, 2020 July 2, 2021 % Change Operating Cash Flows (GAAP) $ 179.1 $ 53.2 (70.3)% $ 234.7 $ 216.5 (7.8)% Less: Purchases o
Slide 17: 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 Six Months Ended $ in millions June 26, 2020 July 2, 2021 % Change June 26, 2020 July 2, 2021 % Change Operating Cash Flows (GAAP) $ 179.1 $ 53.2 (70.3)% $ 234.7 $ 216.5 (7.8)%
Slide 18: Components of Revenue Growth
COMPONENTS OF REVENUE GROWTH Components of Revenue Growth % Change Three Months Ended July 2, % Change Six Months Ended July 2, 2021 vs. Comparable 2020 Period 2021 vs. Comparable 2020 Period Total Revenue Growth (GAAP) 35.8% 25.3% Core revenue growth (Non-GAAP) 32.7% 22.8% Impact of currency exchan
Slide 19: Components of Revenue Growth by Platform
COMPONENTS OF REVENUE GROWTH BY PLATFORM % Change Three Months Ended July 2, 2021 vs. Comparable 2020 Period Components of Revenue Growth Mobility Technologies Diagnostics & Repair Technologies Total Revenue Growth (GAAP) 29.4% 57.6% Core revenue growth (Non-GAAP) 25.6% 57.2% Impact of currency exch
Slide 20: Net Leverage Ratio and Reconciliation to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 2,005.5 Less: Cash (703.4) Net Debt $ 1,302.1 Adjusted EBITDA (Non-GAAP) $ 746.3 Net Leverage Ratio 1.7 Six Months Ended Year Ended LTM $ in millions June 26, 2020 July 2, 2021 December 31, 2020 July 2,