Slide 1: Q4 2023 Earnings Results
>NION TIER’ Q4 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 operating profit,” “adjusted operating profit margin,” "baseline operating profit margin," "segment operating profit," "segment operating profit margin," “adjusted net ea
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, o
Slide 5: Q4 2023 Summary & Highlights
Q4 2023 | Summary & Highlights • Continued strong execution across the Vontier portfolio Durable end market demand and industry-leading automation, Q4’23 productivity, and multi-energy solutions supporting performance • Demand environment remains constructive Book-to-Bill steady at 0.97X; in lin
Slide 6: Vontier | Leading the Mobility Ecosystem – $30B TAM
Vontier | Leading the Mobility Ecosystem – $30B TAM Mobility Technologies Repair Solutions Environmental & Fueling ~35% of 2023 Sales ~20% of 2023 Sales Solutions ~45% of 2023 Sales • C-Retail POS & Site Mgmt. SW • Diagnostic & Advanced Scan Tools • Fueling Equipment & Technologies • Car Wash Mgmt.
Slide 7: Connected Mobility | Differentiated Value Proposition
Connected Mobility | Differentiated Value Proposition Productivity & Automation Outcomes Digital API Enabled Twins Applications o Payments Facilitation Secure, innovative, integrated payment solutions o Asset Management Up-time assurance, remote AI/ML Modern, Modular Ecosystem monitoring, self-h
Slide 8: Innovation | Differentiated Products & Solutions
Innovation | Differentiated Products & Solutions Doubled New Product Development (NPD) CAGR +9% 6X # of New Product Launches 2020-2023 $164M • iNFX Microservices Platform $145M • FlexPay6 Payment Terminal $126M $129M ~31% 38% • Patheon Cloud-based Point of Sale >$100M • Remote Maintenance Subscripti
Slide 9: Q4 2023 Summary Financial Results
Q4 2023 | Summary Financial Results Sales Adj. Operating Profit Margin Adj. Diluted Net EPS Adj. Free Cash Flow ($M) (%) ($) ($M) $872 21.8% 22.0% $0.81 $0.80 $175 $789 $153 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 • Total growth: (10)% • Adj. Operating Profit Margin +20bps •
Slide 10: Segment Results | Mobility Technologies
Segment Results | Mobility Technologies Sales Segment Operating Profit Q4 Highlights +3.9% 20.6% Core +4.4% • +12% baseline core sales growth FX (0.5)% • +MSD core sales growth Alternative Energy Solutions (CNG/RNG/H2) up >20% ($M) $261 $271 ($M) $56 DRB (car wash) up MSD $49 • Invenco by GVR so
Slide 11: Segment Results | Repair Solutions
Segment Results | Repair Solutions Sales Segment Operating Profit Q4 Highlights +4.7% 25.0% • +MSD core sales growth Core +4.7% FX (0.0)% +DD growth in tool storage and diagnostics tools Benefiting from high new product ($M) $145 $152 ($M) vitality and improved lead times $38 $33 Health of the
Slide 12: Segment Results | Environmental & Fueling Solutions
Segment Results | Environmental & Fueling Solutions Sales Segment Operating Profit Q4 Highlights (19.6%) 28.9% • +1% baseline core sales growth Core (19.1)% Acq (0.8)% • Demand for aftermarket offerings FX 0.3% remains robust +LDD $422 • Continued strength in US Dispenser ($M) ($M) $122 • Healthy fu
Slide 13: Balance Sheet & Cash Flow
Balance Sheet & Cash Flow Free Cash Flow ($M) Debt & Liquidity ($M) Q4 2022 Q4 2023 Q4 2022 Q4 2023 Cash from Operating Activities $181 $165 Gross Debt $2,605 $2,307 Capital Expenditures (17) (17) (Less): Cash & Cash Equivalents (205) (341) Free Cash Flow $164 $148 Net Debt $2,400 $1,966 Adj. Free C
Slide 14: Full Year and Q1 2024 Guidance
Full Year and Q1 2024 Guidance Guide Commentary: Q1’24 FY’24 • End markets supported by strong Guide Guide secular tailwinds Total Revenue $745 – $760 $3,050 – $3,110 • Continued strength in NA Dispenser, Aftermarket, C-Store and Alternative Energies; Solid growth in Car Wash Core Revenue Growth +2
Slide 15: Connected Mobility | Enabling Long-Term Value Creation
Connected Mobility | Enabling Long-Term Value Creation 2020 2023 2026 2023 – 2026 Targets Core Sales ~4% +4-6% Growth 5% Cumulative Adj. Operating Profit ~40% ~40% ~25% ~$2.7B ~32% ~43% >150bps Margin ~$3.5B ~51% ~$3.1B Sales Expansion Sales Sales ~19% +10% EPS CAGR ~21% ~20% Free Cash Flow ~100% Co
Slide 16: Appendix
>» Appendix 16
Slide 17: Full Year 2024 Guidance Assumptions
Full Year 2024 Guidance Assumptions • Sales Assumptions: FX: Neutral; Headwind in H1 / Tailwind in H2 Net Acquisitions & Divestitures: ($140-150M1) • Interest Expense: ~$80-85M Assumes ~$100M debt paydown • Tax Rate: ~21.5-22.0% • Share count2: ~155-156M • Excludes full year contribution from
Slide 18: Segment Reporting | Historic Financial Detail
Segment Reporting | Historic Financial Detail 18
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: 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 22: Supplemental Reconciliation Data
Supplemental Reconciliation Data 22
Slide 23: Components of Sales Growth
COMPONENTS OF SALES GROWTH 23
Slide 24: Reconciliation of Operating Profit to Adjusted Operating Profit and Segment Operating Profit
RECONCILIATION OF OPERATING PROFIT TO ADJUSTED OPERATING PROFIT AND SEGMENT OPERATING PROFIT 24
Slide 25: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS 25
Slide 26: 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 26
Slide 27: 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 27
Slide 28: Net Leverage Ratio and Reconciliation from Net Earnings to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA 28