Slide 1: Fourth Quarter 2021 Earnings Release
Fourth Quarter 2021 Earnings Release February 17, 2022 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: FY21 Accomplishments to Unleash Earnings Growth Potential
FY21 Accomplishments to Unleash Earnings Growth Potential +10.6% reported revenue, +7.4% core revenue growth +160 bps adj core OMX Financial Outperformance Adj EPS $2.88, +17% Adj FCF conversion 96%, 102% excluding extra tax payment >2X GM$ from NPI Market Share Gains Profitable Growth
Slide 5: Q4 2021 Summary
Q4 2021 Summary Focus and execution deliver another beat and strong finish to the year – Adj. EPS $0.83 driven by DRB and profitable growth initiatives, partially offset by supply chain and inflationary headwinds – Strong execution delivered adj. core OMX in line with guide despite supply chain impa
Slide 6: Q4 2021 Financial Performance
Q4 2021 Financial Performance Summary of Key Financial Items • Total growth: (3.1)% • GAAP OP Margins -140 bps • GAAP EPS of $0.66 • Core revenue growth: (8.2)% • Adj. Core OMX -70 bps • 21.9% Adj. Effective Tax Rate ("ETR") • Acquisitions: 5.7% • Reflecting Adj. GMX +140 bps • $0.01 tax benefit • F
Slide 7: Q4 2021 Free Cash Flow Detail
Q4 2021 Free Cash Flow Detail Adj. Free Cash Flow ($M) and FCF • Q4 2021: Conversion (%) – Free Cash Flow: $124M, -39%; conversion of 111% of GAAP Net Earnings 141% – Adj. Free Cash Flow: $149M, -28%; conversion of 105% of Adj. Net Earnings, 105% reflecting a slight decrease in working capital • 202
Slide 8: Performance by Platform
Performance by Platform Mobility Technologies Diagnostics & Repair Technologies Revenue Revenue (4.5)% • Supply/demand +2.4% • Continued strong Core (11.0)% imbalance Core +2.2% franchisee impacting GVR in growth, demand both developed solid and high-growth markets • Backlog grew sequentially 10% •
Slide 9: Thoughts on Q1 and FY22
Thoughts on Q1 and FY22 Q1 Considerations – Anticipate total revenue growth +MSD, core revenue flat to down LSD, reflecting continued supply chain and COVID-related headwinds – Expect flat adj. core OMX, excluding restructuring costs – Expect adj. EPS of $0.64 - $0.67 – ETR ~23% FY22 Considerations
Slide 10: Supplemental Reconciliation and Other Data
Supplemental Reconciliation and Other Data 10 10
Slide 11: 2021 Sales of $3B by Solution and Geography
2021 Sales of $3B by Solution and Geography By Solution¹ By Geography¹ Alternative Energy Environmental Western 2% 9% Europe Retails Service & 9% Solutions Other Recurring High 14% Growth Revenue 16% Markets 15% SaaS 6% Other Rest of 1% World Retail North 5% Fueling HW America 30% Auto 71% Repair 21
Slide 12: Mobility Technologies
Mobility Technologies Fueling Infrastructure Solutions Key Financials ◦ Leading global supplier of mobility infrastructure Mobility Technologies solutions 2021 Sales ◦ Offers products, software, and services to improve safety, environmental compliance, and efficiency ~$2.3bn Car Wash Industry Soluti
Slide 13: Diagnostics & Repair Technologies
Diagnostics & Repair Technologies Key Financials Automotive Repair Tools, Storage, & Diagnostics D&R Technologies ◦ Leading manufacturer and distributor of vehicle 2021 Sales repair tools & diagnostic equipment through ~1,930 Franchisees ~$0.7bn ◦ Offers vehicle repair tools, tool storage, and autom
Slide 14: Reconciliation of Gross Profit to Adjusted Gross Profit and Margin
RECONCILIATION OF GROSS PROFIT TO ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN Three Months Ended Year Ended $ in millions December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Revenue (GAAP) $ 790.2 $ 815.0 $ 2,990.7 $ 2,704.6 Gross Profit (GAAP) $ 356.4 $ 362.7 $ 1,333.
Slide 15: 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 Year Ended $ in millions December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Revenue (GAAP) $ 790.2 $ 815.0 $ 2,990.7 $ 2,704.6 Operating Profit (GAAP) $ 160.9
Slide 16: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended Year Ended December 31, 2021 December 31, 2021 2020 Adjusted Operating Profit Margin (Non-GAAP) 24.6% 21.4% Core (Non-GAAP) (0.7)% 1.6% Acquisitions (Non-GAAP) 0.3% 0.1% Currency exchange rates (Non-GAAP) 0.4% (0.2)% 202
Slide 17: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS 17 17
Slide 18: Reconciliation of Diluted EPS to Adjusted Diluted EPS
RECONCILIATION OF DILUTED NET EARNINGS PER SHARE TO ADJUSTED DILUTED NET EARNINGS PER SHARE 18 18
Slide 19: Forecasted Adjusted Diluted Net Earnings Per Share
FORECASTED ADJUSTED DILUTED NET EARNINGS PER SHARE 19 19
Slide 20: 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 Year Ended $ in millions December 31, 2021 December 31, 2020 % Change December 31, 2021 December 31, 2020 % Change Operating Cash Flows (GAAP) $ 139.2 $ 210.7 (33.9)% $ 481.1 $ 691.3 (30.4)% Les
Slide 21: Reconciliation of Operating Cash Flows to Adjusted Free Cash Flow
RECONCILIATION OF OPERATING CASH FLOWS TO ADJUSTED FREE CASH FLOW AND ADJUSTED FREE CASH FLOW CONVERSION Three Months Ended Year Ended $ in millions December 31, 2021 December 31, 2020 % Change December 31, 2021 December 31, 2020 % Change Operating Cash Flows (GAAP) $ 139.2 $ 210.7 (33.9)% $ 481.1 $
Slide 22: Components of Revenue Growth
COMPONENTS OF REVENUE GROWTH Components of Revenue Growth % Change Three Months Ended % Change Twelve Months Ended December 31, 2021 vs. Comparable 2020 December 31, 2021 vs. Comparable 2020 Period Period Total Revenue Growth (GAAP) (3.1)% 10.6% Core revenue growth (Non-GAAP) (8.2)% 7.4% Impact of a
Slide 23: Components of Revenue Growth by Platform
COMPONENTS OF REVENUE GROWTH BY PLATFORM % Change Three Months Ended December 31, 2021 vs. Comparable 2020 Period Components of Revenue Growth Mobility Technologies Diagnostics & Repair Technologies Total Revenue Growth (GAAP) (4.5)% 2.4% Core revenue growth (Non-GAAP) (11.0)% 2.2% Impact of acquisi
Slide 24: Net Leverage Ratio and Reconciliation to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 2,603.7 Less: Cash (572.6) Net Debt $ 2,031.1 Adjusted EBITDA (Non-GAAP) $ 730.4 Net Leverage Ratio 2.8 Year Ended $ in millions December 31, 2021 Net Earnings (GAAP) $ 413.0 Interest expense, net 47.8