Slide 1: Second Quarter 2018 Earnings Release
Second Quarter 2018 Earnings Release July 26, 2018 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 EARNINGS PER SHARE +13.9% Core +5.3% +28.2% Acquisitions +7.0% FX +1.6% 3
Slide 4: Performance Summary
PERFORMANCE SUMMARY OPERATING MARGIN GROSS MARGINS Q2 2017 – 49.4% -80 bps +120 bps Core +50 bps Q2 2018 – 50.6% Acquisitions -70 bps Transaction Costs -60 bps SG&A (as a % of Revenue) Q2 2017 – 21.9% +210 bps Q2 2018 – 24.0% R&D (as a % of Revenue) Q2 2017 – 6.1% -10 bps Q2 2018 – 6.0% 4
Slide 5: Performance Summary
PERFORMANCE SUMMARY Three Months Ended ($M) June 30, 2017 June 29, 2018 Operating Cash Flow $246 $342 Cap Ex 29 27 FREE CASH FLOW $217 $315 Net Earnings (GAAP) $240 $295 Estimated Provisional Tax Reform Adjustments (GAAP) — 2 Net Earnings Excluding the Estimated Provisional Tax Reform $240 $293 Adju
Slide 6: Professional Instrumentation
PROFESSIONAL INSTRUMENTATION REVENUE OPERATING MARGIN +17.1% +30 bps Core +3.4% Core +180 bps Acquisitions +11.9% Acquisitions -150 bps FX +1.8% Field Solutions* Product Realization* Sensing Technologies * Part of Advanced Instrumentation and Solutions 6
Slide 7: Industrial Technologies
INDUSTRIAL TECHNOLOGIES REVENUE OPERATING MARGIN +11.2% -10 bps Core +6.9% Core +30 bps Acquisitions +2.8% Acquisitions -40 bps FX +1.5% Transportation Technologies Automation & Specialty Components Franchise Distribution 7
Slide 8: 2018 Guidance
2018 GUIDANCE 2018 OUTLOOK 2018 ADJUSTED DILUTED NET EPS GUIDANCE WALKFORWARD High-End • Core revenue growth of 4.0% to 5.0%; effective tax rate of 18% Prior Adj Diluted Net EPS Full-Year Guidance $ 3.50 – Core growth increase of 100 basis points relative to prior Adj Diluted Net EPS Growth 21.1% gu
Slide 9: 2018 Outlook Q&A
2018 OUTLOOK @ FORTIVE Q&A
Slide 10: Fortive
(2) FORTIVE