Slide 1: Q2 2023 Earnings Results
>NION TIER’ Q2 2023 Earnings Results
Slide 2: Safe Harbor and Forward-Looking Statements
Safe Harbor and 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, an
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains references to “core sales growth,” "baseline core sales growth," "adjusted gross profit," "adjusted gross profit margin," “adjusted operating profit,” “adjusted operating profit margin,” "baseline operating profit margin," "segment operating pro
Slide 4: Non-GAAP Financial Measures (continued)
Non-GAAP Financial Measures (continued) • Adjusted net earnings refers to net earnings calculated in accordance with GAAP, but excluding on a pretax basis amortization of acquisition-related intangible assets, Restructuring- and divestiture- related adjustments, transaction- and deal-related costs,
Slide 5: Q2 2023 | Summary & Highlights
Q2 2023 | Summary & Highlights • Solid topline performance across the Vontier portfolio ✓ Strong baseline core sales growth across all 3 segments ✓ Progress on 'Expanding the Core' strategic pillar Q2’23 ✓ Benefitting from strong secular tailwinds • Demand environment remains constructive Baseline C
Slide 6: Invenco by GVR | Redefining Convenience Retail
Invenco by GVR | Redefining Convenience Retail Retail Solutions iNFX microservices Flexible, Modular • Shell to deploy iNFX Solutions across 13,000 sites through 2024 Scalable & Agile Operating Extensible System • Another multi-year iNFX Hardware To be win with a large national Agnostic account to 8
Slide 7: Differentiated Multi-Energy Portfolio
Differentiated Multi-Energy Portfolio EV Charging Operating Systems CNG & Hydrogen Accelerating the transition to electric mobility Multi-energy portfolio enables transition to sustainable fleets • Leading interoperable electric vehicle charging and energy • Shipping first Hydrogen units in August m
Slide 8: Q2 2023 | Summary Financial Results
Q2 2023 | Summary Financial Results Sales Adj. Operating Profit Margin Adj. Diluted Net EPS Adj. Free Cash Flow ($M) (%) ($) ($M) $776 $764 $0.72 $0.67 21.5% 20.9% $77 $13 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 • Total growth: (1.5)% • Adj. Gross Margin +150bps • GAAP Dilute
Slide 9: Segment Results | Mobility Technologies
Segment Results | Mobility Technologies Sales Segment Operating Profit Q2 Highlights +13.4% 18.7% Core +4.6% • +10% baseline core sales growth Acq. +10.0% • Solid +MSD core sales growth FX (1.2)% ✓ DRB +LDD with continued strength in tunnel car wash ($M) $239 ($M) $211 $43 $45 ✓ Alternative Energy s
Slide 10: Segment Results | Repair Solutions
Segment Results | Repair Solutions Sales Segment Operating Profit Q2 Highlights +5.8% 26.3% • +MSD core sales growth Core +6.0% FX (0.2)% ✓ Continued Same Store Sales growth and positive net franchisee adds $158 ✓ Led by strength in Tool Storage, ($M) $150 ($M) $42 $42 Hardline Tools and Cordless Po
Slide 11: Segment Results | Environmental & Fueling Solutions
Segment Results | Environmental & Fueling Solutions Sales Segment Operating Profit Q2 Highlights (9.6%) 28.1% • +9% baseline core sales growth Core (8.5)% FX (1.1)% • US Dispenser volumes above expectations; broad-based demand for new site builds & site refreshes ($M) $375 ($M) $99 $95 • Strong proj
Slide 12: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Free Cash Flow ($M) Debt & Liquidity ($M) Q2 2022 Q2 2023 Q2 2022 Q4 2022 Q2 2023 Cash from Operating Activities $7 $78 Gross Debt $2,623 $2,605 $2,444 Capital Expenditures (13) (13) (Less): Cash & Cash (127) (205) (244) Equivalents Free Cash Flow ($6) $65 Net Debt $2,496 $
Slide 13: Q3 & 2023 Guidance
Q3 & 2023 Guidance Prior Guidance New Guidance 05/04/23 Q3’23 2023 2023 YoY Change YoY Change YoY Change Total Sales Change (MSD) (L/MSD) (L/MSD) Core Sales Change (MSD)1 (L/MSD)2 (L/MSD)2 Baseline Core Sales MSD+ MSD+ MSD+ Adj. OP Margin (370 – 420bps)1 (60 – 80bps)2 (60 – 80bps)2 Baseline Adjusted
Slide 14: Capitalizing on Secular Tailwinds & Industry-Specific Growth Drivers across the Mobility Ecosystem
Capitalizing on Secular Tailwinds & Industry-Specific Growth Drivers across the Mobility Ecosystem Mobility Technologies ✓ Labor challenges ✓ Proliferation of connected devices ✓ Increasing regulatory requirements ✓ Evolving consumer demands ✓ Increasing site complexity ✓ Customer decarbonization &
Slide 15: Appendix
Appendix 15
Slide 16: Full Year 2023 Guidance Assumptions
Full Year 2023 Guidance Assumptions • Sales Assumptions: ▪ FX: $(5-15M) ▪ Net M&A: $0-10M1 • Interest Expense: ~$95M ▪ Assumes ~$250M debt paydown • Tax Rate: ~22.5% • Share count2: ~156M • Includes full year contribution from Hennessy (~$0.05) 1) Includes ~$60M acquisition contribution from Invenco
Slide 17: Segment Reporting | Historic Financial Detail
Segment Reporting | Historic Financial Detail 17
Slide 18: Vontier | A Compelling Investment Opportunity
Vontier | A Compelling Investment Opportunity Leading global provider of critical mobility & alternative energy technologies at the center of an attractive, rapidly evolving ~$30B Mobility Ecosystem Poised to benefit from attractive secular tailwinds Focused on maximizing shareholder value through t
Slide 19: Vontier has Unique Positions and Strengths to Win
Vontier has Unique Positions and Strengths to Win #2 in U.S. convenience retail POS #1 integrated technology provider to car wash industry in U.S. with 17k sites Top 10 global fleets IoT player (#1 ANZ, #3 UK) Leader in EV Charging smart software; ~1M+ drivers across 28 countries #1 NA player in CNG
Slide 20: Re-segmentation Aligns with Strategy and Shareholder Focus
Re-segmentation Aligns with Strategy and Shareholder Focus From: One Segment To: Three Segments* Mobility Technologies Repair Solutions Environmental & Fueling VNT OpCos Point-of-Sale (POS) and payment, Premium equipment Best-in-class IoT-based fleet monitoring, and financial services to environment
Slide 21: Connected Mobility Strategy
Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS Drive core growth and Leverage current Expand into near-in Operating Profit Margin positions to grow and high-growth adjacencies, Expansion (OMX) diversify portfolio diversify further VBS
Slide 22: Smart Sustainable Solutions
VISION: OUR NORTH STAR Smart Sustainable Solutions We harness the Our innovations We connect customers – power of connected pave the way to and communities – with digital workflows and a safer and innovative mobility analytics to solve cleaner planet. technology and services high-value they need to
Slide 23: Supplemental Reconciliation Data
Supplemental Reconciliation Data 23
Slide 24: Components of Sales Growth
COMPONENTS OF SALES GROWTH % Change Three Months Ended June 30, 2023 vs. Comparable 2022 Period Mobility Technologies Repair Solutions Environmental & Fueling Solutions Total Total Sales Growth (GAAP) 13.4% 5.8% (9.6)% (1.5)% Core sales growth (Non-GAAP) 4.6% 6.0% (8.5)% (1.6)% Acquisitions (Non-GAA
Slide 25: Reconciliation of Gross Profit to Adjusted Gross Profit
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT Three Months Ended Six Months Ended $ in millions June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Sales (GAAP) $ 764.4 $ 776.4 $ 1,540.8 $ 1,524.5 Gross Profit (GAAP) $ 348.1 $ 348.1 $ 701.1 $ 683.4 Amortization of acquisition-related inv
Slide 26: Reconciliation of Operating Profit to Adjusted Operating Profit and Segment Operating Profit
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT AND SEGMENT OPERATING PROFIT Three Months Ended Six Months Ended $ in millions June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Sales (GAAP) $ 764.4 $ 776.4 $ 1,540.8 $ 1,524.5 Operating Profit (GAAP) $ 120.6 $ 136.5 $ 254.4 $ 271.
Slide 27: 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 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Net Earnings (GAAP) $ 97.3 $ 33.3 $ 180.1 $ 283.5 Amortization of acquisition-related intangible assets 20.3 19.6 41.0 38.1 Restructuring- a
Slide 28: Reconciliation of Operating Cash Flow to Free Cash Flow and Conversion Ratio
RECONCILIATION OF OPERATING CASH FLOW TO FREE CASH FLOW AND FREE CASH FLOW CONVERSION RATIO Three Months Ended Six Months Ended $ in millions June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Operating Cash Flow (GAAP) $ 77.5 $ 7.2 $ 158.5 $ 48.5 Less: Purchases of property, plant & equipment (c
Slide 29: Reconciliation of Operating Cash Flow to Adjusted Free Cash Flow and Conversion Ratio
RECONCILIATION OF OPERATING CASH FLOW TO ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION RATIO Three Months Ended Six Months Ended $ in millions June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Operating Cash Flow (GAAP) $ 77.5 $ 7.2 $ 158.5 $ 48.5 Less: Purchases of property, pl
Slide 30: Net Leverage Ratio and Reconciliation from Net Earnings to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 2,443.7 Less: Cash (244.0) Net Debt $ 2,199.7 Adjusted EBITDA (Non-GAAP) $ 747.2 Net Leverage Ratio 2.9 Three Months Ended LTM $ in millions June 30, 2023 June 30, 2023 Net Earnings (GAAP) $ 97.3 $ 297.