Slide 1: Fourth Quarter & Full Year 2022 Results
Fourth Quarter & Full Year 2022 Results February 16, 2023 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 includ e, but are not limited to statements regarding Vontier Corporation’s (the “Company’s”) business and acquisition opportunities, anticipated reven
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains ref erences to “core rev enue growth,” “f ree cash f low,” "f ree cash f low conv ersion," “adjusted f ree cash f low,” “adjusted f ree cash f low conv ersion,” “adjusted operating prof it,” “adjusted operating prof it margin,” “adjusted core op
Slide 4: 2022 In Review
2022 In Review Strong Execution in a Challenging Environment • Solid finish to the year driven by profitable growth initiatives ✓ Q4 Adj. Diluted EPS $0.81; Core Revenue Growth ~10% (~11% ex-EMV) supported by improving supply chain ✓ Q4 Orders up ~10% organically (~18% ex-EMV); Book-to-Bill improved
Slide 5: Q4 2022 Financial Performance
Q4 2022 Financial Performance Summary of Key Financial Items • Total growth: 10.3% • Adj. Gross Margin (150) bps • GAAP Diluted EPS of $0.43 • Core growth: 10.3% • Adj. OP Margin (280) bps • Share Repurchase +$0.06 – Ex-EMV +11.0% • Adj. Core OMX (110) bps • Interest Expense & FX ($0.08) • Acquisiti
Slide 6: Performance by Platform
Performance by Platform Mobility Technologies Diagnostics & Repair Technologies Revenue ($M) • Strong growth at Revenue ($M) • Matco same-store sales DRB...continued share +MSD gain • Led by Power Tools • GVR +LDD led by ~30% +30% & Tool Storage growth in Aftermarket and +LDD Alternative Fuels (CNG)
Slide 7: Q4 & Full Year 2022 Free Cash Flow Detail
Q4 & Full Year 2022 Free Cash Flow Detail Adj. Free Cash Flow ($M) and Adj. FCF Conversion (%) 137% 108% Q4 2022 • FCF: $164M, +32%; conversion of 243% of GAAP Net Earnings • Adj. FCF: $175M, +15%; conversion of 137% of Adj. Net Earnings Full Year 2022 • FCF: $261M, -40%; conversion of 65% of GAAP N
Slide 8: 2023 Guidance
2023 Guidance Other Assumptions Q1’ 23 2023 Full Year 2023 FX: $(30-40M) Total Revenue Change (L/MSD) (L/MSD) M&A: $50-60M Interest Expense: Core Revenue Change (L/MSD) (MSD) ~$100-105M Baseline* Core Revenue Change +LSD +MSD Tax Rate: ~22.5% Adjusted OP Margin (EBITA) (100 – 140bps) (60 – 80bps) Sh
Slide 9: Save the Date! 2023 Investor Day
Save the Date! 2023 INVESTOR DAY MARCH 23, 2023 8:30AM - 1PM ET New York City, NY Formal invitation and registration details to follow. 9
Slide 10: Supplemental Reconciliation Data
Supplemental Reconciliation Data 10 10
Slide 11: Vontier U.S. Fueling Dispenser Revenue
Vontier U.S. Fueling Dispenser Revenue Indicates y ear ov er ~$740M ~$100M y ear change ~$100M ~$640M ~$550M Incremental EMV Revenue ~$300M ~$250M Core U.S. Dispenser Revenue Base Grow ing GDP+ 2020 2021 2022 2023E • Lowering EMV adoption rate estimate given macro impact on • Future growth drivers i
Slide 12: 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, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Revenue (GAAP) $ 871.9 $ 790.2 $ 3,184.4 $ 2,990.7 Gross Profit (GAAP) $ 385.0 $ 356.4 $ 1,428.
Slide 13: 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, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Revenue (GAAP) $ 871.9 $ 790.2 $ 3,184.4 $ 2,990.7 Operating Profit (GAAP) $ 156.4
Slide 14: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended Year Ended December 31, 2022 December 31, 2022 2021 Adjusted Operating Profit Margin (Non-GAAP) 24.6 % 22.9 % Core (Non-GAAP) (1.1) % (0.2) % Acquisitions (Non-GAAP) (1.7) % (0.2) % 2022 Adjusted Operating Profit Margin
Slide 15: Reconciliation of Net Earnings to Adjusted Net Earnings
RECONCILIATION OF NET EARNINGS TO ADJUSTED NET EARNINGS Three Months Ended Year Ended $ in millions December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Net Earnings (GAAP) $ 67.7 $ 112.4 $ 401.3 $ 413.0 Amortization of acquisition-related intangible assets 21.0 18.0 78.0 42.4 Res
Slide 16: Reconciliation of Diluted EPS to Adjusted Diluted EPS
RECONCILIATION OF DILUTED NET EARNINGS PER SHARE TO ADJUSTED DILUTED NET EARNINGS PER SHARE Three Months Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Diluted Net Earnings per Share (GAAP) $ 0.43 $ 0.66 $ 2.49 $ 2.43 Amortization of acquisition-related inta
Slide 17: 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 RATIO Three Months Ended Year Ended $ in millions December 31, 2022 December 31, 2021 % Change December 31, 2022 December 31, 2021 % Change Operating Cash Flows (GAAP) $ 181.4 $ 139.2 30.3% $ 321.2 $ 481.1 (33.2)%
Slide 18: 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 RATIO Three Months Ended Year Ended $ in millions December 31, 2022 December 31, 2021 % Change December 31, 2022 December 31, 2021 % Change Operating Cash Flows (GAAP) $ 181.4 $ 139.2 30.3% $ 321
Slide 19: Components of Revenue Growth
COMPONENTS OF REVENUE GROWTH Components of Revenue Growth % Change Three Months Ended December 31, 2022 vs. Comparable 2021 % Change Year Ended December 31, Period 2022 vs. Comparable 2021 Period Total Revenue Growth (GAAP) 10.3 % 6.5 % Core rev enue growth (Non-GAAP) 10.3 % 2.6 % Impact of acquisit
Slide 20: Components of Revenue Growth by Platform
COMPONENTS OF REVENUE GROWTH BY PLATFORM % Change Three Months Ended December 31 2022 vs. Comparable 2021 Period Components of Revenue Growth Mobility Technologies* Diagnostics & Repair Technologies Total Revenue Growth (GAAP) 12.5 % 2.8 % Core rev enue growth (Non-GAAP) 12.9 % 3.0% Impact of acquis
Slide 21: Net Leverage Ratio and Reconciliation to Adjusted EBITDA
NET LEVERAGE RATIO AND RECONCILIATION FROM NET EARNINGS TO EBITDA TO ADJUSTED EBITDA Total Debt $ 2,604.6 Less: Cash (204.5) Net Debt $ 2,400.1 Adjusted EBITDA (Non-GAAP) $ 755.2 Net Leverage Ratio 3.2 Year Ended $ in millions December 31, 2022 Net Earnings (GAAP) $ 401.3 Interest expense, net 69.6