Vontier Corporation · NYSE:VNT
Vontier — Investor Day (March 2023)
152 slides from Vontier's investor day presentation, Mar 23, 2023
Slide 1: Investor Day | March 23, 2023
> NONTIER Investor Day | March 23, 2023
Slide 2: Welcome and Opening Remarks
Ryan Edelman Vice President, Investor Relations Welcome and Opening Remarks
Slide 3: 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 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains references to “core revenue growth,” “free cash flow,” “free cash flow conversion,” “free cash flow margin,” “adjusted free cash flow,” “adjusted free cash flow conversion,” “segment operating profit,” “segment operating profit margin,” “adjuste
Slide 5: 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 costs, asset impairments, transaction-and deal-related costs, gains and loss
Slide 6: Today's Agenda
Today’s Agenda 8:30 AM Welcome and Opening Remarks 10:25 AM Foundational Solutions in an Evolving Market Ryan Edelman Dave Coombe Vice President, Investor Relations President, Environmental & Fueling Solutions Leading the Transition to a Smarter, More Enabling the Garage of the Future Sustainable Mo
Slide 7: Leading the Transition to a Smarter, More Sustainable Mobility Ecosystem
Mark Morelli President & Chief Executive Officer Leading the Transition to a Smarter, More Sustainable Mobility Ecosystem
Slide 8: Accelerating Smart, Sustainable Solutions for the Road Ahead
Accelerating Smart, Sustainable Solutions for the Road Ahead Strong progress and momentum on portfolio 1 transformation accelerates profitable growth Re-segmentation aligns with strategy and 2 shareholder focus for value creation Unique positioning within ~$30B Mobility 3 Ecosystem TAM enables conti
Slide 9: A Company in Motion: Early Innings of Transformation
A Company in Motion: Early Innings of Transformation 2020: Vontier 1.0 2021-22: Vontier 2.0 Building Foundation Driving Performance Successfully Established Vontier Unleashed Our Potential to Drive Profitability • Launched in October 2020 • Leveraged VBS to drive operational • Established Purpose an
Slide 10: Strong Progress and Gaining Momentum
Strong Progress and Gaining Momentum Vontier Vontier 2020 Today BASELINE (EX-EMV) CORE -LSD +MSD GROWTH* % (avg. from 2018-2020) ADJ. OPERATING PROFIT* % ~21% ~22% NON-ICE PORTFOLIO (as % of revenue) ~30% ~45% # of SOFTWARE ENGINEERS 564 767 RECURRING REVENUE ~20% ~30% $1.7B of capital deployed at e
Slide 11: Vontier Today | Mobility Ecosystem Leader
Vontier Today | Mobility Ecosystem Leader 2022 Financial Highlights $3.2B ~7% ~22% Purpose Sales Baseline (Ex-EMV) Core Growth Adj. Op. Profit Margin Mobilizing the future to create a better world 45% ~30% $1.4B Adj. GM Recurring Revenue Cumulative Adj. FCF (2020-2022) Values Stronger together, driv
Slide 12: 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 Retail Solutions VNT OpCos Point-of-Sale (POS) and payment, Premium equipment Best-in-class IoT-based fleet monitoring, and financial servic
Slide 13: Vontier Business System (VBS) Core to Our Culture
Vontier Business System (VBS) Core to Our Culture VBS powers every aspect of our culture and performance 13
Slide 14: Mobility Ecosystem Customers are on a Transformational Journey
Mobility Ecosystem Customers are on a Transformational Journey Shifting Consumer Preferences • Responding to need for expanded choices, immediate delivery, and consumption • Desire for contactless, seamless experiences • Safe and secure shopping experience Productivity Challenges • Improving asset u
Slide 15: Market Focus | Mobility Ecosystem
Market Focus | Mobility Ecosystem Vontier’s Fleet Maintenance Presence – ‘22 Fleet 50k C-stores POS Sites Car Wash 260k Fueling Sites 17k Fuel Site Auto Repair Car Washes C-Store 150k Convenience Retail Hub Auto Repair Shop Customers EV Charging 35k EV Charging Plugs 500k Fleet Vehicles *Illustrativ
Slide 16: Mobility Ecosystem | Convenience Retail
Mobility Ecosystem | Convenience Retail Customer Energy Storage Chargers C-store Dispensers & Car Wash High-Value Environmental Problems: • Operational Efficiency • Consumer Experience • ESG – safety, security, sustainability • Energy Management High-value opportunities across modern convenience mob
Slide 17: Mobility Ecosystem | Fleets
Mobility Ecosystem | Fleets Customer High-Value Problems: • Operator Productivity • Safety & Compliance • Asset Management • Net-Zero Fleets Fleet hubs and operations are transforming to be smarter, 17 more efficient, safer, and sustainable
Slide 18: Mobility Ecosystem | Repair Solutions
Mobility Ecosystem | Repair Solutions Customer High-Value Problems: • Technician ELECTRIC VEHICLE BAYS Shortage • Repair Complexity SMART DIAGNOSTICS • Shop MOBILE EV CHARGING STATION Productivity • Consumer Experience VIRTUAL TECH HELP Auto repair and service operations evolving in the face of incr
Slide 19: The Overall Market Opportunity is Significant and Growing
The Overall Market Opportunity is Significant and Growing ~$30B TAM Growing MSD 2022 Vontier Revenue Market TAM Growth Rate ~$3.2B ~$21B HSD Mobility Alt. Payment Convenience Auto Care Fleet Management Technologies Energy Solutions(2) Retail Solutions(4) Solutions(5) Solutions(1) Solutions(3) ~$6B M
Slide 20: Robust Secular Drivers Underpin TAM and Growth
Robust Secular Drivers Underpin TAM and Growth Mobility Technologies Repair Solutions Environmental & Fueling • Evolving customer needs for • Increasing parc complexity • Evolving regulatory landscape for frictionless transactions, due to multi-energy future environment, anti-fraud, safety personali
Slide 21: 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 22: A Company in Motion: Looking Ahead
A Company in Motion: Looking Ahead 2020 2021 - 2022 2023+ 2023+: Vontier 3.0 Scale Our Connected Mobility Strategy underpinned by Smart, Sustainable Solutions Executing our Connected Mobility Strategy Manage Controller • Optimizing our core for continued margin expansion • Expanding in core markets
Slide 23: Connected Mobility Strategy
Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS Drive core growth and Leverage current Expand into near-in Operating Profit Margin positions to grow and high-growth adjacencies, Expansion (OMX) diversify portfolio diversify further VBS
Slide 24: Connected Mobility Strategy | Optimize Core
Connected Mobility Strategy | Optimize Core Operational Excellence OPTIMIZE CORE • Strategic Pricing Drive core growth and • Platform Simplification Operating Profit Margin Expansion (OMX) • Footprint Restructuring • Divestitures Strategy to unlock operating margin expansion and growth 24
Slide 25: Connected Mobility Strategy | Expand Core
Connected Mobility Strategy | Expand Core Accelerate Growth EXPAND CORE • Integrated POS + Payments • IoT Automation Leverage current • Matco Store Expansion positions to grow and • Fueling Aftermarket Business diversify portfolio • Environmental Products • Fueling High Growth Markets Key strategic
Slide 26: Expand Core | Increasing Investments to Support Value-Added Growth
Expand Core | Increasing Investments to Support Value-Added Growth More Than Doubling New Product Development (NPD) ~5% of NPD Examples Revenues Next Gen Automated Tank Gauge ~$170M with security and modern connectivity $145M features, lower total cost of ownership $130M $126M World-class, cloud-bas
Slide 27: Expand Core Example | DRB Growth
Expand Core Example | DRB Growth Secular Trends Deeply Embedded POS and Workflow SW • Growing demand for Do-it-for-Me services • Environmental restrictions for water usage and chemical runoff Deeply Embedded Frictionless Payment • Significant institutional investment POS and Payments and Recurring d
Slide 28: Expand Core Example | Fueling Aftermarket Business Growth
Expand Core Example | Fueling Aftermarket Business Growth Strategy Aftermarket Offerings • Dedicated organization • Data / analytics driven category management • Multiple channels including eCommerce Dispenser & Outdoor Hanging Hardware Payment Terminal Replacement Why We Win • Large installed base,
Slide 29: Connected Mobility Strategy | Adjacent Markets
Connected Mobility Strategy | Adjacent Markets Accelerate Growth ADJACENT MARKETS • Auto-Repair Shop Workflow Solutions Expand into near-in • CNG / H2 Fueling HW/SW Solutions high-growth adjacencies, diversify further • Data Analytics & AI • EV Charging Software • On-site Energy Management Expansion
Slide 30: Adjacent Markets Example | ANGI Alternative Energy Growth
Adjacent Markets Example | ANGI Alternative Energy Growth Secular Trends • Heavy Duty / Medium Duty vehicles diesel emissions regulations – CARB, European Green Deal CNG / H2 Compression Systems CNG / RNG / H2 Dispensing • Incentives from Inflation Reduction Act, NEVI • Public commitments from major
Slide 31: Adjacent Markets Example | Driivz Electric Vehicle Charging Software
Adjacent Markets Example | Secular Trends Driivz Electric Vehicle Charging Software • Electrification of passenger & fleet Smart EV Charging and vehicles Energy Management • Sustainability / decarbonization Software • Incentives from Inflation Reduction Act, NEVI Why We Win • Premier software platfo
Slide 32: Driving Sustainable MSD Growth
Driving Sustainable MSD Growth Revenue +4-6% Organic3 ~$3.5B +LSD ~$3.2B +MSD ~$3.0B2 +HSD 2022 EMV Baseline 2023E Mobility Repair Environmental 2026E Sunset1 Operations Technologies Solutions & Fueling Solutions 1) Assumes $300M YoY decline in U.S. Dispenser sales due to EMV sunset; 2) Includes ful
Slide 33: Connected Mobility Strategy Drives Long-Term Value Creation
Connected Mobility Strategy Drives Long-Term Value Creation Value Creation ~35% Framework ~4% ~45% >$4B Sales ~33% ~41% • Above market, +MSD Growth 5% ~$3.0B Sales • Adj. OP Margin Expansion ~25% ~$2.7B ~20% (30-35% incrementals) ~51% Sales ~22% • ~100% Adj. FCF Conversion ~70% Non-ICE ~19% ~45% Non
Slide 34: Smart Sustainable Solutions
V I S I O N : O U R N O R T H S TA R 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
Slide 35: The Road Ahead
The Road Ahead The Road Ahead Next 3 Years Leading global provider of critical mobility & multi-energy technologies at the center of an attractive, rapidly +MSD Revenue growth evolving ~$30B Mobility Ecosystem ~35% Recurring revenues Poised to benefit from attractive secular tailwinds +150bps Adj. o
Slide 36: Advancing Innovative Solutions across the Mobility Ecosystem
Advancing Innovative Solutions across the Mobility Ecosystem Mobility Technologies
Slide 37: Mobility Technologies | Key Messages
Mobility Technologies | Key Messages Broad suite of industry-leading Mobility 1 Solutions to drive profitable growth and margin expansion Technology-enabled infrastructure to 2 capitalize on emerging secular trends across C-stores, car washes, and fleet management Sustainable competitive advantages,
Slide 38: Mobility Technologies Overview
Mobility Technologies Overview 2022 Highlights $21B HSD ~$900M Who We Are TAM Market Growth Rate1 Revenue Leading global solutions provider to convenience retailing, independent ~35% ~21% ~40% Software % Segment Recurring retailing, car washes, and fleets of Sales Operating Profit Revenue What We Do
Slide 39: Technology Solutions for Auto Care
Ian Williams President, DRB Systems Technology Solutions for Auto Care
Slide 40: DRB Systems Overview
DRB Systems Overview 2022 Highlights $1.8B MSD 38M Who We Are TAM Market Growth Rate1 Subscriptions Sold Leading provider of POS and software solutions for the Car Wash and 17k 40% 600 Auto Care industry Systems Deployed Recurring Revenue Employees What We Do Enable customers to drive recurring reve
Slide 41: Two Main Car Wash Formats
Two Main Car Wash Formats Tunnel / Conveyor Car Washes In-Bay Automatic Car Washes • 18,000+ Express tunnel car washes in the U.S. • 29,000+ “In-Bay Automatic” car washes in the U.S. • Growing at 5%-6% CAGR • Growing at 1%-2% CAGR • Fragmented market, consolidating with • National / regional chains,
Slide 42: Car Wash Technologies Ecosystem | Where We Play
Car Wash Technologies Ecosystem | Where We Play DRB Technology Suite – Tunnel Car Wash Example Deep relationships with 17 of Attendant the top 20 car wash chains Terminals/Tablets delivering end-to-end solutions Touch Queuing Tunnel Controls Anti-Collision AI Customer Identification POS Vehicle Prof
Slide 43: Scalable Core Capabilities | Advanced Analytics and Digital Marketing
Scalable Core Capabilities | Advanced Analytics and Digital Marketing Consumer Marketing and Endpoints Creating Customer Value • Personalized Customer Experience • Web & Mobile Applications • Digital Marketing • Pricing Optimization 2x Subscriptions Sold • Data Integration 10% Ticket Revenue Growth
Slide 44: Leveraging Capabilities to Digitally Enable Customers
Leveraging Capabilities to Digitally Enable Customers Delivering High Impact through Actionable Operational Insights ✓ POS / Integrated Payments Customer Impact ✓ Mobile Payments Consumer Engagement ✓ Backoffice Automation Scale Operational Intelligence Acquire and Align 25%+ Wash Count Growth ✓ Wor
Slide 45: Poised to Benefit from Favorable Secular Tailwinds
Poised to Benefit from Favorable Secular Tailwinds Technology ecosystem enabling operators to: Operator demand for stable, predictable recurring revenues driving targeted ✓ Build Customer Loyalty marketing spend and capabilities ✓ Increase Recurring Revenue ✓ Reimagine Consumer Experiences Increasin
Slide 46: DRB Systems | Connected Mobility Strategy
DRB Systems | Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS • Supply chain optimization with Vontier • Adoption of cloud-based • Strong value chain front office architecture ’greenfield’ opportunities • Strong technology transition le
Slide 47: Expand Core | Customer Consolidation Creates Opportunity
Expand Core | Customer Consolidation Creates Opportunity Why DRB wins 2018 – Single Site Operators 2022 – Express Tunnel Strongest end-to-end were the Majority Consolidation Composition POS Solution • Impactful workflow solutions 100% 100% National (41+) 7% • Integrated technology platform National
Slide 48: Expand Core | Key Growth Initiatives
Expand Core | Key Growth Initiatives Data Platform Capabilities Payments Geographic Adoption Expansion Enablement Expansion Simplify our customers’ Leverage POS Focus on demystifying Investigating global ability to Scale and technology and and simplifying opportunity combining Manage their business,
Slide 49: Adjacent Markets | Greenfield Value Chain Opportunities
Adjacent Markets | Greenfield Value Chain Opportunities “Upstream” Value Chain “Downstream” Value Chain Data, Analytics, and Membership Solutions Operational Efficiency Solutions Market and Digital Revenue / Site Equipment Chemical / enterprise marketing / member POS and optimization monitoring wate
Slide 50: Adjacent Markets | Enabling and Connecting the Mobility Ecosystem
Adjacent Markets | Enabling and Connecting the Mobility Ecosystem DRB provides a comprehensive technology suite of solutions focused 50 on enabling the future of Smart, Sustainable Solutions
Slide 51: DRB Systems | Summary
DRB Systems | Summary Well-positioned as the trusted technology advisor within an exciting, high growth market to capitalize on secular trends for significant expansion Integrated portfolio of services and solutions drives strong customer ROI and enables right to win a growing share of the value cha
Slide 52: Enabling the Future of Convenience Retail
Karthik Ganapathi President, Retail Solutions Enabling the Future of Convenience Retail
Slide 53: Retail Solutions Overview
Retail Solutions Overview 2022 Highlights ~$4.4B MSD ~$435M 37% Who We Are TAM Market Revenue International Growth Rate1 Revenue Leading payment, point-of-sale, automation, and asset management solutions provider #2 ~165k ~350 ~3M for convenience retail (C-Stores) Point-of-Sale Devices Global Loyalt
Slide 54: Convenience Retail is Vibrant and Growing
Convenience Retail is Vibrant and Growing North America Convenience Non-Fuel Retail (NFR) Sales1($B) 93% U.S. population is within <10 minutes of a C-store Covid (64% within 5 mins)1 +10% Great $278 23% Increase in foot traffic Recession Dot-Com 2 Bubble +6% to C-store +5% Purchase transactions $100
Slide 55: Convenience Retail Continues to Evolve
Convenience Retail Continues to Evolve Pre 1960s Past 50 years Today → Future Standalone Gas Stations + food items + essential items + full foodservice + fresh food + self + basic services (e.g., Car Wash) checkout + frictionless / autonomous + + Loyalty Cash Service Point of Inventory Media Mobile
Slide 56: Well-Positioned to Capitalize on Secular Trends Impacting Convenience Retail
Well-Positioned to Capitalize on Secular Trends Impacting Convenience Retail Labor constraints driving need for stronger Our Differentiators digital solutions and intuitive workflows Increase Specialists in Productivity Convenience Retail Convenience stores becoming complex with multiple assets, req
Slide 57: Our Solutions Run the Convenience Store 24/7
Our Solutions Run the Convenience Store 24/7 Improve Productivity: Consumer Engagement: ~$2.4B TAM ~$2.0B TAM Site Integration / Service Delivery Automation Authorize Dispensing Fuel, EV, Hydrogen, CNG; Approve Car Washes, QSRs Point-of-Sale (POS) & IoT / Asset Workflows Management Alarms, SW Update
Slide 58: Retail Solutions | Connected Mobility Strategy
Retail Solutions | Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS • Global software factory Solutions: • Scale technology partnerships • Invenco integration • Integrated POS + payments offers • Operational insights and close- • Operati
Slide 59: Optimize Core | Focusing the Organization to Deliver on Customer Needs
Optimize Core | Focusing the Organization to Deliver on Customer Needs From… …To Impact Monolithic Architecture Flexible / Modular architecture Regional Product Prioritization Global Product Prioritization Customer Value Regional R&D teams Global Software Factory STRESS FREE TO MAINTAIN Contemporary
Slide 60: Expand Core Example | C-Store Consumer Experience
Expand Core Example | C-Store Consumer Experience Customer Challenges Our Solution • Long wait times • Deployed Passport POS • System support & maintenance with frictionless checkout • Streamline operations • Standardized across stores • Labor shortages • Ensured remote support (connected assets) Po
Slide 61: Expand Core | Connect Locally, Manage Globally
Expand Core | Connect Locally, Manage Globally Enhance Increase Consumer In 3 YEARS… Productivity Engagement Scale On-prem Edge Automation 3X ✓ Harmonized Design Edge → Cloud Connected Devices Manage iNFX ✓ Scalable & Flexible ~200bps Margin Expansion ✓ Enable Technology Partners Connected Connect H
Slide 62: Expand Core | iNFX – Unique Plug & Play Approach to Manage
Expand Core | iNFX – Unique Plug & Play Approach to Manage the Entire Convenience Site iNFX is the Operating System to onboard / manage any asset… Fuel Pump Car Wash Terminal EV Payment Terminal POS Pricing Loyalty / Payment Tank Gauge Site Controller ENERGY SITE FUTURE TERMINAL PAYMENT DELIVERY TAN
Slide 63: Adjacent Markets | Key Growth Initiatives
Adjacent Markets | Key Growth Initiatives Integrated Connected Scale Technology Offers Partners Accelerate connected Expand partners to rapidly POS + payments, with develop / deploy critical frictionless / autonomous solutions leveraging Scale asset management connectivity framework with standard co
Slide 64: Retail Solutions | Summary
Retail Solutions | Summary Accelerate growth in a ~$4.4B market with strong solutions, customer access, and Convenience Retail expertise Extend end-to-end solutions to solve critical customer problems in consumer engagement and productivity Expand margins via innovation, SW execution, SaaS, and pric
Slide 65: Alternative Energy & Sustainable Fleets
Alain Samaha President, Alternative Energy & Sustainable Fleets Alternative Energy & Sustainable Fleets
Slide 66: Alternative Energy & Sustainable Fleets Brings Together Three Distinctive Portfolio Capabilities
Alternative Energy & Sustainable Fleets Brings Together Three Distinctive Portfolio Capabilities Telematics CNG / RNG / H2 EV Charging Solutions Fueling Solutions Network Software Global provider of Leading provider of CNG / RNG / H2 Leading provider of EV telematics and fleet refueling systems and
Slide 67: Teletrac Navman Overview
Teletrac Navman Overview 2022 Highlights $6.5B LDD Top 5 Who We Are TAM Market Growth Rate1 International Player Global Telematics solutions provider serving businesses operating vehicle fleets across ~18k ~97% ~500k+ multiple industries Global Customers SaaS / ARR2 Global Assets What We Do Connect
Slide 68: Teletrac Navman | Focused on Attractive, Diverse, Large End Markets
Teletrac Navman | Focused on Attractive, Diverse, Large End Markets $2.8B TAM $0.8B TAM Private Service Fleets Construction Site Vehicles $2.1B TAM $0.7B TAM Private and For-hire Fleets Municipal EMT Fleets, Public Transit Enabling customers across industries to improve productivity, 68 safety, sust
Slide 69: Teletrac Navman | Poised to Benefit from Attractive Secular Trends
Teletrac Navman | Poised to Benefit from Attractive Secular Trends Leveraging new TN360 Need for continuous operational improvement due IoT platform to deliver to driver shortage and increasing fuel prices high value applications that address secular needs: ✓ Vehicle telematics Safety and compliance
Slide 70: Teletrac Navman | Comprehensive Portfolio
Teletrac Navman | Comprehensive Portfolio Applications End-to-end fully integrated solutions Real-Time Safety Driver Job Dispatch Maintenance Positive Event Tracking Analytics Coaching Workflows Alerts Recognition Driver Fuel Usage Compliance Audio Connected AI Mobile Scorecard Monitoring Reporting
Slide 71: Teletrac Navman | Digitally Enabling Customers
Teletrac Navman | Digitally Enabling Customers Delivering High Impact through Actionable Operational Insights Customer Impact ✓ Emissions Reduction ✓ Asset Tracking Scale 20% Fuel Savings ✓ Reporting / Compliance ✓ Fleet Safety / Driver Coaching 15% ✓ Fuel Reporting Manage Improved Uptime ✓ Optimizi
Slide 72: Alternative Energy & Sustainable Fleets | Connected Mobility Strategy
Alternative Energy & Sustainable Fleets | Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS Teletrac Navman Teletrac Navman • Net-Zero Fleets – Teletrac Navman, • Accelerate turnaround • Grow team with strong domain experts Driivz, ANGI •
Slide 73: Optimize Core | Teletrac Navman: Business Realigned to Drive Profitable Growth
Optimize Core | Teletrac Navman: Business Realigned to Drive Profitable Growth Since the Spin: Turnaround focused on: Customer Deal Size 3X Scaling the business globally Bookings Moving upstream to larger customers Growth DD% Launching new modern platform ARR Growth MSD% Closing product gaps and str
Slide 74: Expand Core | Teletrac Navman Key Growth Initiatives
Expand Core | Teletrac Navman Key Growth Initiatives New Geographic Operational Safety & Risk Capabilities Scale Insights Management Scale the team with Leverage successful Deliver strong analytics Global launch of safety strong domain to ANZ multi-channel and AI product capabilities solution with c
Slide 75: Expand Core | Teletrac Navman: Expanding Product Capabilities, Solutions, Value Economics
Expand Core | Teletrac Navman: Expanding Product Capabilities, Solutions, Value Economics ~$4X – $5X+ Additional High-Value Solutions ~$2X – $3X+ • Integrated Systems • Insights Advanced Reporting – Newer High-Value Solutions Safety, Productivity, Engine Mgmt. Start with $1X • In-cab Devices • Drive
Slide 76: Expand Core Example | Teletrac Navman: Management Hub for Food Transport Operation
Expand Core Example | Teletrac Navman: Management Hub for Food Transport Operation Customer Need Results A streamlined platform for camera monitoring, digital workflow, integration Full integration of with ERP, Track & Trace, Compliance, customer’s needs and Refrigeration Solutions into one platform
Slide 77: Adjacent Markets | Uniquely Positioned to Support Net-Zero Fleet Needs
Adjacent Markets | Uniquely Positioned to Support Net-Zero Fleet Needs by Combining Cross-Vontier Capabilities Planning Managing Infrastructure Support for planning and Support managing across Support driving maximum Customer Need orchestration of ICE transition a mixed fleet with varying productivi
Slide 78: Adjacent Markets | ANGI Overview
Adjacent Markets | ANGI Overview Key Differentiators • #1 NA solution provider in CNG / RNG systems and growing in H2 systems ANGI • Scalable, modular systems - Scalable System Operator App dispensing, compression, storage, To match fleet capacity requirements service, and automation • Strong alignm
Slide 79: Adjacent Markets | ANGI on a Strong Growth Trajectory
Adjacent Markets | ANGI on a Strong Growth Trajectory Growing Global Customer Base On a Strong Growth Trajectory (Fleets, OEMs, Fueling Stations, Industrials) Revenue DD CAGR Growth ’22-’26 Bookings DD CAGR Growth ’22-’26 20-30% GHG 95% Tailpipe 40 Year emissions emissions track record reduction red
Slide 80: Adjacent Markets | Driivz Overview
Adjacent Markets | Driivz Overview Key Market Segments • Leading operating system for global EV charging • Designed for large scale EV charging network operators • Future proof platform in a world of disruption and change On-The-Go (C-store, Oil & Gas, Utilities, CPOs) • Reduces operational costs, i
Slide 81: Adjacent Markets | Driivz Differentiators
Adjacent Markets | Driivz Differentiators Key Differentiators Open System Hardware Agnostic High Scalability High Availability Interoperability Supports more than 500 Easily support your 99.9% guaranteed and portability OCPP-certified chargers evolving business needs availability Offers the most mod
Slide 82: Adjacent Markets | Driivz Experiencing Strong Customer Traction and Growth
Adjacent Markets | Driivz Experiencing Strong Customer Traction and Growth Growing Global Customer Base On a Strong Growth Trajectory (charging network operators, fleets, utilities, OEMs) Monthly Recurring 2X Revenue (MRR) Growth YoY Plugs Under ~80% Management CAGR from Growth ’20-’23 700 different
Slide 83: Alternative Energy & Sustainable Fleets Platform | Summary
Alternative Energy & Sustainable Fleets Platform | Summary Business portfolio brings together differentiated capabilities to help address end-to-end customer challenges on the net-zero journey Teletrac Navman is a leading cloud and IoT-device-enabled platform improving safety, sustainability, effici
Slide 84: Q&A Session
WNON TIER Q&A Session
Slide 85: Break
WNONTIER Break
Slide 86: Foundational Solutions in an Evolving Market
Dave Coombe President, Environmental & Fueling Solutions Foundational Solutions in an Evolving Market Environmental & Fueling Solutions
Slide 87: Environmental & Fueling Solutions | Key Messages
Environmental & Fueling Solutions | Key Messages Industry leading fueling solutions with an 1 extensive geographic footprint and deep customer relationships Well-positioned to capitalize on North American 2 fueling site consolidation and expansion Large installed base creates runway of opportunity 3
Slide 88: Environmental & Fueling Solutions Overview
Environmental & Fueling Solutions Overview 2022 Highlights Who We Are $3.0B +LSD $1.5B #1 TAM Market Revenue Global Fueling Leading provider of emission limiting HW Growth Rate1 Equipment and SW solutions and aftermarket services for fueling infrastructure >1M ~60% ~25% >260k Devices Tier 1 Customer
Slide 89: Environmental & Fueling Solutions | Comprehensive Portfolio
Environmental & Fueling Solutions | Comprehensive Portfolio ($ Revenue, 2022) A Automatic Tank Gauge (ATG) A Submersible Pumping Systems and Accessories ~$300M Environmental Products A B Fuel Dispensers C Aftermarket ~$850M Parts & Service Fuel Dispensing Equipment B ~$375M Aftermarket Parts & Servi
Slide 90: Environmental & Fueling Solutions | Sustainable Competitive Advantages
Environmental & Fueling Solutions | Sustainable Competitive Advantages • Allow customers to deliver quality fueling experience Best-in-Class Products • Sustainable solutions to solve customers’ complex environmental needs • ~260k+ fuel sites utilizing HW / SW Fueling Solutions Large Installed Base •
Slide 91: Digitally Enabling Customers to Solve Complex Issues
Digitally Enabling Customers to Solve Complex Issues Delivering High Impact through Actionable Insights ✓ Leak Detection Operational ✓ Forecourt Automation Intelligence ✓ ESG / Fuel Compliance Cloud ✓ Flow Analysis Scale Uptime ✓ Business Intelligence ✓ Remote Resolution Leaks Manage ✓ Remote Pricin
Slide 92: Capitalizing on Key Secular Tailwinds
Capitalizing on Key Secular Tailwinds Key Enablers Evolving regulations create stable replacement demand ✓ Large global installed base above ground and below ground equipment globally ✓ Leading positions across key geographies Industry consolidation in mature markets provides ✓ Broad portfolio of so
Slide 93: Energy Transition | Long-Term Demand Stable
Energy Transition | Long-Term Demand Stable Long-Term Global Industry Revenue Outlook Long-Term Fueling Business Demand • Independent assessment performed by KPMG $3.4B • Key drivers of durability: $3.1B o Customer consolidation – raze and rebuilds o New site additions and format evolution o High gr
Slide 94: Energy Transition | How Electrification Is Impacting Norway
Energy Transition | How Electrification Is Impacting Norway Total Fueling Sites (Norway) Total Fuel Dispensers (Norway) +0.1% CAGR +2.5% CAGR ~22% ofcarNorway’s total parc is EV 1,713 14,286 14,407 1,706 1,709 1,709 13,759 13,294 # of Fueling FLAT Locations of sites added ~15% DC fast chargers incre
Slide 95: Environmental & Fueling Solutions | Connected Mobility Strategy
Environmental & Fueling Solutions | Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS • Strategic value pricing • Capitalize on industry consolidation • Extend Veeder Root technologies to other in developed markets and new site builds / r
Slide 96: Optimize Core | Driving Ongoing Operational Excellence
Optimize Core | Driving Ongoing Operational Excellence Product Platform Component Manufacturing Consolidation Standardization Simplification Reduce >50% of platforms by Design out component Consolidating and localizing 2025, enabling component complexity and create scale manufacturing footprint, sta
Slide 97: Expand Core | Customer Consolidation Enhances GVR's Growth
Expand Core | Customer Consolidation Enhances GVR’s Growth Single-store operators have declined … as larger chains continue to grow historically… C-Store Growth by Customer Segment Expansion Plans of Key Players (% of Sites) 2% 3-Year Total Site Growth Smaller Regional 13% +6,000 +900 +600 locations
Slide 98: Expand Core | Strong Visibility into $250M
Expand Core | Strong Visibility into $250M GVR’s U.S. Dispenser Growth Growth Drivers & Vontier U.S. Dispenser Revenue (2023E) Source of Visibility ~$250M Expansion & Consolidation by Large National and Regional Operators • Adding new sites • Consolidating smaller operators Replacement +LSD • Rebuil
Slide 99: Expand Core | Continued Growth in Global Fueling Businesses
Expand Core | Continued Growth in Global Fueling Businesses Growth Drivers Global Fueling Solutions Revenue Outlook International Fueling Equipment (Dispensers) • Continued infrastructure build out in Emerging Markets International • Increasing focus on environmental and ~$1.3B payment / security re
Slide 100: Expand Core International Example | India ~$350M TAM in 2026
Expand Core International Example | India ~$350M TAM in 2026 as the Revenue Per Site Increases Fueling Kiosk Fueling Plaza Site Content Site Content • 2-3 Dispensers • 8 Dispensers • 2 Tank Gauges • 4 Tank Gauges • Premium Environmental Solutions $ Per Site: ~$6.5k HW $ Per Site: ~$90k HW + $20k aut
Slide 101: Expand Core | Aftermarket Parts Growth Opportunity
Expand Core | Aftermarket Parts Growth Opportunity Global Aftermarket Parts Revenue ~$175M Dispenser & Hanging Outdoor Field Environmental Hardware Payment Terminal Service Product Spare Parts Replacement Parts & Replacements Consumables ~$120M ~20% CAGR +HSD Growth Drivers Revenue CAGR ✓ Large, exp
Slide 102: Expand Core | Growing Regulations Increase Complexity and Demand for Solutions
Expand Core | Growing Regulations Increase Complexity and Demand for Solutions Global Regulatory Landscape* Growth Drivers India Fiscal Abbreviation Key 1) Environmental Protection PCI = Payment Card Industry Mexico Fiscal ✓Ground water EMV = Europay Mastercard & Visa SEA = South-East Asia Brazil Fi
Slide 103: Expand Core Example | Environmental Solutions Offering
Expand Core Example | Environmental Solutions Offering High-Value Problem Unique Vontier Solution Fuels contain Volatile • Developed VaporTEK® Organic Compounds (VOCs) Stage II Collection System that evaporate inside vehicle to return fuel vapors to the fuel tanks and underground underground storage
Slide 104: Environmental & Fueling Solutions | Key Takeaways
Environmental & Fueling Solutions | Key Takeaways Industry leading fueling solutions with an extensive geographic footprint and deep customer relationships Well-positioned to capitalize on North American fueling site consolidation and expansion Large installed base creates runway of opportunity to c
Slide 105: Enabling the Garage of the Future
Tim Gilmore President, Repair Solutions Enabling the Garage of the Future Repair Solutions
Slide 106: Repair Solutions | Key Messages
Repair Solutions | Key Messages Fueling sustainable profitable growth from 1 durable go-to-market business and healthy market backdrop Innovating internally and through unique 2 network of partners to address evolving customer needs Growing network of service-oriented franchisees 3 empowered by Digi
Slide 107: Repair Solutions Overview
Repair Solutions Overview 2022 Highlights $5.7B MSD $610M Who We Are TAM Market Revenue Growth Rate1 Leading manufacturer and distributor of vehicle tools, toolboxes, diagnostic #2 28% 1,900 Mobile Tools equipment, and SW for auto aftermarket Franchise Segment Operating Franchises Profit What We Do
Slide 108: Comprehensive Product Offerings
Comprehensive Product Offerings Tool Storage Diagnostics Specialty Tools Hard Line Power Tools Toolboxes, Service Maximus AC / Cooling, Shop Sockets / Bits, Pneumatic, Electric, Carts, Portable Diagnostics, Equipment, Ratchets, Cordless, Storage, Code Readers, Collision, Under Wrenches, Accessories
Slide 109: Matco Brand Strength | From Professional to Lifestyle Brand
Matco Brand Strength | From Professional to Lifestyle Brand #MATCOLIFESTYLE The Matco brand has evolved from a professional brand to a lifestyle brand – 109 with strong customer stickiness
Slide 110: Repair Solutions | Sustainable Competitive Advantages
Repair Solutions | Sustainable Competitive Advantages • Franchisees purchase tools, equipment, and services and resell to end-customers Durable Go-to- • End-customers value the ability to interact with products, weekly payments, Market Model and warranty not offered by others • In person weekly conc
Slide 111: Poised to Benefit from Favorable Secular Tailwinds
Poised to Benefit from Favorable Secular Tailwinds Market leading assortment Increasing vehicle miles travelled (VMT) due to trend of solutions for the most towards longer trip distances / frequency complex repair jobs ✓ 30%+ product vitality rate ✓ Innovation in Hardline and Increasing average vehi
Slide 112: Fundamental Drivers of Repair Expected to Create Long-Term Opportunity
Fundamental Drivers of Repair Expected to Create Long-Term Opportunity U.S. Vehicle Miles Travelled (VMT) U.S. Aged Vehicle Parc 7 – 12 Years1 (Trillion Miles / year) (Millions of Vehicles) Avg. vehicle age 13.5 yrs. 12.2 yrs. 3.3 2.9 3.0 2022 2030 2035 Vehicles 7-12 years old require the most repai
Slide 113: Continued ADAS Growth Provides Tailwind
Continued ADAS Growth Provides Tailwind ADAS Driving Sensor Proliferation Advanced Driver Assistance Systems (ADAS) / Autonomy • ~60% of U.S. car parc expected to have ADAS L2 by 2035 Repair Content Impact 2x + • Significant increase in the number of sensors and frequency of repair, sensors maintena
Slide 114: Electrification Leading to Mixed Parc
Electrification Leading to Mixed Parc Repair Content Impact U.S BEVs Share of Vehicle Parc • EVs have a higher $ content per BEV ICE vehicle than ICE albeit fewer 100% moving parts ~99% ~95% ~86% ~74% 90% • Increased complexity and higher 80% cost of repair to offset the lower 70% scheduled maintena
Slide 115: Complexity of Parc and ADAS Driving Higher Repair Costs
Complexity of Parc and ADAS Driving Higher Repair Costs U.S. Auto Repair Market Avg. Annual • Growth driven by U.S. Auto Repair Market1 Repair Cost / Vehicle o Expanding vehicle parc CAGR 1% 1.8% 1.6% 2% 8% (’10-’35) o Complexity of powertrain Engine ADAS, types (ICE, HEV, PHEV, Chassis / 2035 Trans
Slide 116: Consequent increase in Size of Toolbox Required by Technician / Shop
Consequent increase in Size of Toolbox Required by Technician / Shop Repair Tools TAM by Product Category U.S. Auto Tools Resilient Shop • Robust auto repair Equipment sector growth Diagnostics & • Investments by shops and Calibration Hardline technicians to address increasing repair complexity / sc
Slide 117: Gaps Requiring "Connected" Diagnostics Capabilities
Increasing Complexity of Repair and Technician Knowledge Gaps Requiring “Connected” Diagnostics Capabilities Complex Vehicle Live Diagnostics Connected Diagnostic Pathways Technician Support Access to OEM Information Real-Time Support Scale OEM Portal SW Updates Skills Gap Compensation Manage Matco
Slide 118: Repair Solutions | Connected Mobility Strategy
Repair Solutions | Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS • Enhance tool storage topline • Storefront expansion • Channel Ecommerce expansion through Kaizen improvements • Digital transformation • Technician as a Service (TaaS)
Slide 119: Optimize Core Example | Applying VBS to Improve Customer Service
Optimize Core Example | Applying VBS to Improve Customer Service Best in Class Customer Service Actions Taken Results • Customer Service Center is an • Deployed annual CEO Kaizen event integral part providing franchisees to define actions to achieve 400%+ improvement in in a premium service customer
Slide 120: Expand Core | Key Growth Initiatives
Expand Core | Key Growth Initiatives Storefront Expansion Tool Storage Cordless Tools Diagnostics Increase number of Fuel growth through Establish a new Leverage distributor storefronts and drive innovation and partnership with industry presence, differentiated sales via trucks promotions to gain sh
Slide 121: Adjacent Markets | Digital Channel Expansion
Adjacent Markets | Digital Channel Expansion Leveraging Patented DBR App to Boost Store Sales… …Powered by Smart Recommendation Engine Matco Generated Personalized Recommendations and Promotions Distributor Generated Promos Recom. Product Flow Product Flow Engine App behavior and POS data feedback A
Slide 122: Well Positioned to Serve the Garage of the Future
Well Positioned to Serve the Garage of the Future ELECTRIC VEHICLE BAYS SMART DIAGNOSTICS MOBILE EV CHARGING STATION VIRTUAL TECH HELP Industry leading product vitality, strong brand, and relationships 122 position Matco well to lead in the Garage of the Future
Slide 123: Repair Solutions | Key Takeaways
Repair Solutions | Key Takeaways Fueling sustainable profitable growth from durable go-to-market business and healthy market backdrop Innovating internally and through unique network of partners to address changing customer needs Growing network of service-oriented franchisees empowered by Distribut
Slide 124: Innovating for a More Sustainable Mobility Ecosystem
Katie Rowen SVP, Chief Legal & Sustainability Officer Innovating for a More Sustainable Mobility Ecosystem ESG | Sustainability
Slide 125: ESG | Key Messages
ESG | Key Messages Delivering value and winning new business by 1 providing smart, sustainable solutions to our customers and helping them meet their ESG goals Enabling people-led innovation through 2 attracting and retaining top talent and untapping employee innovation and motivation Driving operat
Slide 126: Experts are Aligned on a Multi-Energy Future
Experts are Aligned on a Multi-Energy Future Sustainable Gas / Diesel EV CNG H2 Liquid Fuels Light Vehicles Medium Duty Vehicles Long Haul Heavy Trucks Cost economics, energy security, infrastructure needed all point to 126 a multi-energy future; governments are responding accordingly
Slide 127: Vontier is Uniquely Positioned to Serve this Multi-Energy Future
Vontier is Uniquely Positioned to Serve this Multi-Energy Future Gas / Diesel + Sustainable Liquid Fuels CNG H2 EV Powered by Vontier’s portfolio is positioned to serve all technology futures – 127 irrespective of pace of adoption or dominant technology
Slide 128: Accelerating Sustainability through our Solutions
Accelerating Sustainability through our Solutions Mobility Technologies Repair Solutions Environmental & Fueling Building a comprehensive alternative Providing innovative solutions Enabling a safer and more sustainable energy business for a transforming through the energy transition for fueling infr
Slide 129: Example | Sustainable Solutions in Commercial & Industrial
Example | Sustainable Solutions in Commercial & Industrial High Value Opportunity Unique Vontier Solutions Next Steps and Impact Managing energy control in C&I • Global reach and market • Expand geographies and market (B2B) with $1.1B TAM leadership enable transition to • Cross OpCo technology alter
Slide 130: ESG | Goals and Achievements
ESG | Goals and Achievements Diversity, Equity & Inclusion Operational Excellence Environmental • Achieve 35% women leaders globally • Reduce total recordable incident rate • 45% reduction in absolute Scope 1 by 2027 (TRIR) to 0.34 and days away restricted and 2 GHG emissions by 2030 or transferred
Slide 131: Driving Value Creation
Anshooman Aga SVP, Chief Financial Officer Driving Value Creation
Slide 132: Reaffirming Q1 & 2023 Guidance
Reaffirming Q1 & 2023 Guidance Other Planning Assumptions Full Year 2023 Q1’23 2023 FX: $(30-40M) M&A: $50-60M Total Revenue Change (L/MSD) (L/MSD) Interest Expense: Core Revenue Change (L/MSD)1 (MSD) ~$100-105M Baseline Core Revenue Change +LSD +MSD Tax Rate: ~22.5% Adj. OP Margin (100 – 140bps) (6
Slide 133: Focus on Strong Execution with Clear Roadmap to Unlock Value
Focus on Strong Execution with Clear Roadmap to Unlock Value Building on a foundation of strength, with 1 a compelling financial profile and a strong track record of execution Resilient portfolio positioned to outpace market 2 growth through innovation and exposure to higher-growth verticals Path to
Slide 134: Strong Track Record of Execution and Financial Performance
Strong Track Record of Execution and Financial Performance 9% 11% 12% CAGR CAGR CAGR $3.2B $685M $716M $3.08 $3.0B $2.88 $2.7B $579M $2.47 22.5% 21.4% 2020 2021 2022 2020 2021 2022 2020 2021 2022 Revenue ($B) Adj. Operating Profit1 ($M) Adj. Diluted Net EPS • ~5% organic CAGR post-spin • Adj. Operat
Slide 135: Connected Mobility Strategy
Connected Mobility Strategy Operational Excellence Accelerate Growth OPTIMIZE CORE EXPAND CORE ADJACENT MARKETS Drive core growth and Leverage current Expand into near-in Operating Profit Margin positions to grow and high-growth adjacencies, Expansion (OMX) diversify portfolio diversify further VBS
Slide 136: Optimize Core | Vontier Business System (VBS): The Cornerstone of Our Culture
Optimize Core | Vontier Business System (VBS): The Cornerstone of Our Culture and a Competitive Advantage Culture of Continuous Improvement VBS | FUNDAMENTALS PRODUCTIVITY Leadership ✓ Purchase Price Variance (PPV) • Policy Deployment • Supplier management • Focus & Prioritization Process (FPP) • Su
Slide 137: Optimize Core | VBS Provides Framework that Drives Continuous Operational Efficiencies
Optimize Core | VBS Provides Framework that Drives Continuous Operational Efficiencies Dispenser Product Line Simplification Manufacturing Footprint Rationalization Dispensers 32 20 <10 # of SKUs ~4.1k Sq. Ft. ~3.8M -8% ~3.4M -16% ~3.4k -18% ~2.8M -22% ~2.6k 2020 2022 Future 2020 2022 Future FPP dri
Slide 138: Optimize Core | Top-Tier Margins with Opportunity to Expand
Optimize Core | Top-Tier Margins with Portfolio Evolution Benefits Opportunity to Expand • Higher margin software / SaaS • Increased recurring revenue streams Adj. Profit Margin • Exiting lower margin businesses (%) 150bps+ Price / Cost • Strategic pricing 22.5% • Material cost containment and ~21.8
Slide 139: Expand Core | Resilient Portfolio Strategically Aligned to Outperform
Expand Core | Resilient Portfolio Strategically Aligned to Outperform Mobility Repair Environmental & Technologies Solutions Fueling Solutions TAM ~$21B ~$6B ~$3B 2022 Revenue ~$0.9B ~$0.6B ~$1.5B Vontier Growth +HSD +MSD +LSD Rate1 Adj.OP Margin ~21% ~28% ~27% • Digitally enabled HW and SW • Grow f
Slide 140: Expand Core | Refreshed Strategy to Accelerate Growth
Expand Core | Refreshed Strategy to Accelerate Growth in the Next Phase of Our Journey Revenue +4-6% Organic3 +LSD ~$3.5B +MSD +HSD Growth in ~$3.2B aftermarket New product ~$3.0B2 introductions Growth in Higher-growth Environmental verticals Franchisee Solutions growth supported by Continued regula
Slide 141: Expand Core | Strong Free Cash Flow Generation Enables Future Capital Allocation Priorities
Expand Core | Strong Free Cash Flow Generation Enables Future Capital Allocation Priorities Adj. Free Cash Flow • 2023E: ~90-100% conversion ~$1.5B • Cumulative 2023 – 2026E FCF ~$1.4B ~100% conv ~100% conv generation represents ~50% of current market cap1 o Assumes ~100% annual FCF conversion • Add
Slide 142: Strong Balance Sheet and Financial Flexibility
Strong Balance Sheet and Financial Flexibility Debt Maturity Schedule ($M) Net Leverage Improvement ~6.3% ~2.4% $600 $600 3.2 $500 $500 2.8 2.5 – 3.0x Target $400 Leverage Ratio 2.2 2023 2024 2025 2026 2027 2028 2029 2030+ 2020 2021 2022 2023E Variable Rate Fixed Rate Weighted Average Interest Rate
Slide 143: Clear Capital Allocation Priorities
Clear Capital Allocation Priorities Historical Capital Organic Investment Allocation (‘21 – ’22) • Continued investment in new product development Manage Leverage Capital Share Expenditures $150-200M Debt Paydown in 2023 Repurchase 6% 19% • Target Net Debt to Adj. EBITDA 2.5 – 3.0X Dividends $1.5 –
Slide 144: Adjacent Markets | Accelerating Growth Through Our Disciplined M&A Framework
Adjacent Markets | Accelerating Growth Through Our Disciplined M&A Framework Strategic Filters Financial Criteria Financial Criteria 1 Aligns with Strategy • Complementary to portfolio 1 Double Digit ROIC in 3-5 Years • Expands TAM; Growth markets, underpinned by strong secular drivers • Path to Top
Slide 145: Adjacent Markets Example | DRB Systems Acquisition
Adjacent Markets Example | DRB Systems Acquisition Transaction Overview Results The Future of DRB • Closed September ‘21 for $965M1 • Sustainable end market demand • #1 player in car wash systems 2022 revenue over the planning horizon with highly competitive positions increased >30% • Leveraging key
Slide 146: Building Long Term Shareholder Value | 2024 – 2026 Targets
Building Long Term Shareholder Value | 2024 – 2026 Targets Adj. OP Margin Adj. EPS Adj. Organic Growth Expansion Growth Free Cash Flow +4-6% 150bps+ ≥10% ~100% Conversion 3 Year CAGR1 Cumulative 3 Year CAGR Connected Mobility Operational Growth and margin Enabling Strategy excellence expansion trans
Slide 147: Focus on Strong Execution with Clear Roadmap to Unlock Value
Focus on Strong Execution with Clear Roadmap to Unlock Value Building on a foundation of strength, with 1 a compelling financial profile and a strong track record of execution Resilient portfolio positioned to outpace market 2 growth through innovation and exposure to higher-growth verticals Path to
Slide 148: Closing Remarks
Mark Morelli President & Chief Executive Officer Closing Remarks
Slide 149: Enabling the Way the World Moves
Enabling the Way the World Moves Safe, sustainable, efficient movement of people, goods, energy, and data by 149 connecting, managing, scaling the mobility ecosystem
Slide 150: Connected Mobility Strategy
Connected Mobility Strategy Purpose: We are to create a better world. ESG Vision: Accelerating Smart Sustainable Solutions for the Road Ahead Value Creation Framework Operational Excellence Accelerate Growth • Above market, +MSD Growth • Operating Margin Expansion Optimize Core Expand Core Adjacent
Slide 151: Exciting Investment Opportunity
Exciting Investment Opportunity The Road Ahead Next 3 Years Leading global provider of critical mobility & alternative energy technologies at the center of an attractive, +MSD Organic growth revenue rapidly evolving ~$30B Mobility Ecosystem ~35% Recurring revenues Poised to benefit from attractive s
Slide 152: Q&A Session
WNON TIER Q&A Session