Slide 1: Fourth Quarter 2018 Earnings Release
Fourth Quarter 2018 Earnings Release February 7, 2019 1
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, statements regarding the Company's anticipated earnings, business and acquisition opportunities, timing of acquisitions and dispositions, anticipated revenue growth, anticipated
Slide 3: Performance Summary
PERFORMANCE SUMMARY ADJUSTED DILUTED NET REVENUE FROM CONTINUING EARNINGS PER SHARE FROM OPERATIONS CONTINUING OPERATIONS +11.4% Core +7.4% +30% Acquisitions +5.8% FX -1.8% $1,757.5 $0.91 $1,577.9 $0.70 Q4 2017 Q4 2018 Q4 2017 Q4 2018 3
Slide 4: Performance Summary
PERFORMANCE SUMMARY OPERATING MARGIN GROSS MARGINS -250 bps Q4 2017 – 51.6% Core +40 bps -50 bps Acquisitions -200 bps Q4 2018 – 51.1% Transaction Costs -90 bps SG&A (as a % of Revenue) Q4 2017 – 25.9% 230 bps Q4 2018 – 28.2% 19.3% 16.8% R&D (as a % of Revenue) Q4 2017 – 6.3% -10 bps Q4 2017 Q4 2018
Slide 5: Performance Summary
PERFORMANCE SUMMARY Three Months Ended Year Ended FCF FCF December December % December December % 31, 2017 31, 2018 Change 31, 2017 31, 2018 Change ($M) Operating Cash Flows From Continuing $ 416 $ 423 $ 1,020 $ 1,201 Operations Cap Ex 39 36 111 112 Free Cash Flow From Continuing $ 376 $ 387 3% $ 90
Slide 6: Professional Instrumentation
PROFESSIONAL INSTRUMENTATION REVENUE OPERATING MARGIN +14.0% -550 bps Core +5.2% Core -5 bps Acquisitions +10.2% Acquisitions -375 bps FX -1.4% Transaction Costs -170 bps 21.6% $1,000.3 $877.2 16.1% Q4 2017 Q4 2018 Q4 2017 Q4 2018 Field Solutions* Product Realization* Sensing Technologies * Part of
Slide 7: Industrial Technologies
INDUSTRIAL TECHNOLOGIES REVENUE OPERATING MARGIN +8.1% +110 bps Core +10.3% Core +95 bps Acquisitions +0.1% Acquisitions +15 bps FX -2.3% $757.2 20.5% $700.7 19.4% Q4 2017 Q4 2018 Q4 2017 Q4 2018 Transportation Technologies Franchise Distribution ** Financial measures are presented on a continuing o
Slide 8: Fortive Formula Delivering Double Digit Earnings Growth in 2019
Fortive Formula Delivering Double Digit Earnings Growth in 2019 8
Slide 9: Q&A
@ FORTIVE Q&A
Slide 10: (2) FORTIVE
(2) FORTIVE