Vontier Corporation · NYSE:VNT
Vontier — Investor Day (November 2021)
30 slides from Vontier's investor day presentation, Nov 19, 2021
Slide 1: Retail Solutions Teach-In
Retail Solutions Teach-In November 19, 2021
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 may contain 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 mar
Slide 4: What You Will Hear Today
What You Will Hear Today Retail Solutions is a ~$500M high quality portfolio of scale with a long runway of attractive expansion opportunities and secular growth drivers – $3.6B TAM, growing +MSD – Moving up the technology stack – Consumer experience and customer productivity workflow solutions
Slide 5: Gilbarco Veeder-Root
Gilbarco Veeder-Root cree or
Slide 6: Gilbarco Veeder-Root Overview
Gilbarco Veeder-Root Overview Overview Strategic Advantages • #1 global supplier of solutions for mobility infrastructure • Leader in technology for regulatory and infrastructure build- • Customers include the world’s leading convenience stores and out cycles commercial fleet brands • Diverse mix of
Slide 7: GVR is the Leading Global Provider of Technology Solutions for Convenience Retail
GVR is the Leading Global Provider of Technology Solutions for Convenience Retail Moving Up the Technology Stack to Meet the Growing Needs of the Consumer 7
Slide 8: Key Market Dynamics Underpinning Long-Term Growth for GVR
Key Market Dynamics Underpinning Long-Term Growth for GVR Continued HGM Security & Retailer Growth in the Infrastructure Environmental Sophistication Global Car Parc Build-Out Regulations • The global car parc of • Strategic change in • Growing car parc • Air and ground water quality ~1.2bn vehicles
Slide 9: Industry Leading Platform of Technology Solutions for the Convenience Retail Market
Industry Leading Platform of Technology Solutions for the Convenience Retail Market Grow Retail Workflow Solutions GVR’s Retail Solutions Portfolio $2.7B TAM1│MSD Growth Rate1 Core Offerings Expansion of Workflow Solutions Key M&A • Mobile Payment Enablement Payment #1 • Payment Security Solutions G
Slide 10: In-Store Sales Have Consistently Grown for ~20 Years
In-Store Sales Have Consistently Grown for ~20 Years, Generating the Majority of Profit for C-Stores Grow Retail Workflow Solutions USA C-Store Inside Store Sales Market1 ($B) Customer Example2: Circle K Mix +5% Dot-Com Bubble +8% Great Recession +2% COVID Majority of 10% transactions are $256 $252
Slide 11: C-Stores Becoming a Destination for Convenience Retail
C-Stores Becoming a Destination for Convenience Retail Grow Retail Workflow Solutions Evolution in Consumer Behavior Driving Convenience as a Concept • Wawa named “America’s Favorite Sandwich Chain”1 • Casey’s is the 5th largest pizza chain in the United States2 • 7Eleven has ~25 million members in
Slide 12: Complexity of C-Store Ecosystem Increasing as Offerings Expand
Complexity of C-Store Ecosystem Increasing as Offerings Expand Grow Retail Workflow Solutions Focused on Solving High-Value Customer Needs • Operational Efficiency via data analytics focused on: • Increasing device uptime • Reducing employee training • Lower inventory costs • Consumer Experience: re
Slide 13: Case Study: Expanding Share-of-Wallet
Case Study: Expanding Share-of-Wallet, Enabled By GVR’s Leading Point-of-Sale Position Grow Retail Workflow Solutions The Challenge The Solution The Impact • Customer needed new point-of-sale solution that • Upgraded point-of-sale software allowed for frictionless check out and future Additional Sal
Slide 14: Case Study: HGMs Driven by Infrastructure Modernization
Case Study: HGMs Driven by Infrastructure Modernization Grow Retail Workflow Solutions Expand in High-Growth Markets The Challenge The Solution The Impact • Customer needed to modernize point-of- • Utilized VBS toolkit for VOC and software sale software product development Beachhead in HGMs First La
Slide 15: Case Study: Improving Operational Efficiency With Remote Site Connectivity
Case Study: Improving Operational Efficiency With Remote Site Connectivity Grow Retail Workflow Solutions The Challenge The Solution The Impact • Upgrades and troubleshooting for on-premise • Expansion of Passport service offerings with software required service technician on-site remote site connec
Slide 16: Continued Evolution from Fueling to Mobility Solutions Provider
Continued Evolution from Fueling to Mobility Solutions Provider Grow Retail Workflow Solutions Grow E-Mobility Offerings Expand in High-Growth Markets Capture Regulatory Driven Growth 1920 – 1980 1980 – 2020 2020 Neighborhood Rise of Omnichannel Convenience Retail Gas Station The C-Store Car repai
Slide 17: Summary of GVR
Summary of GVR #1 global provider of technology solutions for mobility infrastructure Track record of organic growth, disciplined M&A, and margin expansion Continued tailwinds from regulatory drivers and build-out of EV charging networks Large runway of growth opportunities from HGMs driven by infra
Slide 18: DRB
DRB
Slide 19: DRB Overview
DRB Overview Overview Strategic Advantages • Market leading integrated technology provider of point-of-sale, workflow • Industry leader with best-in-class technology platform, support and software, and control solutions to the attractive car wash industry scale • Customers include 19 of the top 20 e
Slide 20: End-to-End Integrated Suite of Industry Leading Solutions
End-to-End Integrated Suite of Industry Leading Solutions A POS Technology C D F Software & Hardware #1 A Software Control Systems B Software & Hardware Customer ID C Workflow & Monitoring #1 Workflow Tech Enablement D Workflow, Monitoring & A C Payment Facilitation Consumer Digital B E Digital Mark
Slide 21: DRB Offerings are Deeply Embedded in Daily Workflows
DRB Offerings are Deeply Embedded in Daily Workflows POS Technology Digital Payments Workflow & Monitoring Software Marketing Control Digital Mission-Critical, Payment Customer Systems and Business People Marketing & Enabling Technology Facilitation Identification Workflow Analytics Management Data
Slide 22: Secular Tailwinds Driving MSD Market Growth
Secular Tailwinds Driving MSD Market Growth Shift from Full Robust New Build Industry Retailer Service to Growth and Consolidation Sophistication Express Upgrades • Strong inflow of PE money • 85%+ of new builds are • Expect tunnel car wash • Shift towards predictable in car washes resulting in expr
Slide 23: Best-in-Class Control System Defined the Industry Standard
Best-in-Class Control System Defined the Industry Standard Technology Leadership SiteWatch® Mission-Critical Car Wash Technology Differentiated POS and Workflow Software… …with a Clear Market Leadership Position • Monitor real-time operating metrics and make data-based decisions • Active site base o
Slide 24: Clear Path to Accelerate Shift to Recurring Revenue
Clear Path to Accelerate Shift to Recurring Revenue Recurring Revenue Subscription Model Patheon® – The New Gold Standard in Workflow Software… …Drives Recurring Revenue / Subscription Penetration • Best-of-breed cloud-based technology software platform Existing Site Conversion • Flexible, scalable
Slide 25: Retailer Sophistication Driving Adoption of Digital Solutions
Retailer Sophistication Driving Adoption of Digital Solutions Data Analytics & Digital Marketing Unrivaled Digital Marketing and Consumer Data Analytics Platform Enabling DRB Customers to Maximize ROI (‘We Sweat Your Assets’) 4x 5,000 20% 2x Higher capture rate Subscription members Uplift in the ave
Slide 26: Differentiated Integrated Payments Platform
Differentiated Integrated Payments Platform Payment Facilitation Comprehensive Consumer Demand Payment Solution for Electronic Payments Key Attributes Advantaged by strong processor relationships and gain leverage from a large installed base of POS systems Secure Platform with PA DSS Certification
Slide 27: Summary of DRB
Summary of DRB Clear industry leader with best-in-class technology platform and unmatched scale Well-positioned for unprecedented car wash market evolution and growth Consumer data thought leadership & insights and digital marketing solutions address growing needs of more sophisticated retailer Pois
Slide 28: Committed to Delivering Profitable Growth & Compounding Returns
Committed to Delivering Profitable Growth & Compounding Returns Expect 2022 total revenue growth +MSD – Profitable growth initiatives expected to drive margin expansion and FCF growth Advancing portfolio diversification strategy toward long-term secular growth drivers – Retailer sophistication,
Slide 29: Retail Solutions Q&A Panel
Retail Solutions Q&A Panel Mark Morelli David Naemura Aaron Saak Dan Pittman Lisa Curran President & CEO SVP & CFO President GVR President DRB VP Investor Relations 29
Slide 30: NION TIER’
NION TIER’