Vontier Corporation · NYSE:VNT
Vontier — Citi 2021 Global Industrials Virtual Conference
17 slides from Vontier's conference presentation, Feb 17, 2021
Slide 1: Citi 2021 Global Industrials Virtual Conference
Citi 2021 Global Industrials Virtual Conference February 17, 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 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: Premier Industrial Technology Company
Premier Industrial Technology Company By Geography¹ RoW Europe 4% Key Financials 10% Market Leader in Mobility Technologies $2.7bn High-Growth 2020 Sales Markets (HGMs) Large, Global Installed Base with 16% GDP+ Historically Low Cyclicality North America Core Revenue Growth 70% Attractive Financial
Slide 5: 2021 Springboard to Multiyear Transformation
2021 Springboard to Multiyear Transformation Q4 Strong Print: VBS continues to drive outstanding cash flow conversion, core revenue growth and margin expansion – Adj. EPS $0.87, +21% – Adj. FCF conversion of 141% – Adj. Core OMX +240 bps – Core revenue growth 8.5%; core revenue growth excluding EMV
Slide 6: $27bn Market with Large Runway for Earnings Growth
$27bn Market with Large Runway for Earnings Growth Total Addressable Market1 | Estimated Market Growth2 Retail / Commercial Fueling $7bn | MSD Expand Footprint EV Workflow Software in HGMs Infrastructure Smart City Solutions Telematics $8bn | MSD $5bn | HSD Intersection IoT Devices Automation Adv. T
Slide 7: Vontier Value Creation Flywheel
Vontier Value Creation Flywheel Core Revenue Margin Expansion Growth 25-50 bps core OMX GDP+ Growth Investment Grade Through M&A Style Balance Sheet >100% FCF conversion to Fund Growth Note: Represents general target measures Deploying Proven Model for Compounding Earnings Growth 7
Slide 8: Vontier | A Compelling Investment Opportunity
Vontier | A Compelling Investment Opportunity Industrial technology leader with outstanding brands and strong installed base levered to attractive $27bn mobility market Strong performance and limited cyclicality, supported by recurring sales Robust free cash flow generation and investment grade styl
Slide 9: NION TIER
NION TIER
Slide 10: Supplemental Reconciliation Data
Supplemental Reconciliation Data 10 10
Slide 11: 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, 2019 December 31, 2020 December 31, 2019 December 31, 2020 Revenue (GAAP) $ 743.3 $ 815.0 $ 2,772.1 $ 2,704.6 Operating Profit (GAAP) $ 162.8
Slide 12: Reconciliation of Adjusted Operating Profit Margin Expansion
RECONCILIATION OF ADJUSTED OPERATING PROFIT MARGIN EXPANSION Three Months Ended December 31, 2020 2019 Adjusted Operating Profit Margin (Non-GAAP) 22.3% Core (Non-GAAP) 2.4% Currency exchange rates (Non-GAAP) (0.1)% 2020 Adjusted Operating Profit Margin (Non-GAAP) 24.6% 12 12
Slide 13: 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, 2019 December 31, 2020 December 31, 2019 December 31, 2020 Net Earnings (GAAP) $ 126.2 $ 136.8 $ 436.5 $ 342.0 Amortization of acquisition-related intangible assets 7.8 7.2 31.8 29.0 Rest
Slide 14: 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, 2019 December 31, 2020 December 31, 2019 December 31, 2020 Diluted Net Earnings per Share (GAAP) $ 0.75 $ 0.81 $ 2.59 $ 2.02 Amortization of acquisition-related inta
Slide 15: 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, 2019 December 31, 2020 % Change December 31, 2019 December 31, 2020 % Change Operating Cash Flows (GAAP) $ 222.9 $ 210.7 (5.5)% $ 545.2 $ 691.3 26.8 % Less:
Slide 16: Operating Cash Flows to Adjusted Free Cash Flow and Conversion
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, 2019 December 31, 2020 % Change December 31, 2019 December 31, 2020 % Change Operating Cash Flows (GAAP) $ 222.9 $ 210.7 (5.5)% $ 545.2 $
Slide 17: Components of Revenue Growth
COMPONENTS OF REVENUE GROWTH Components of Revenue Growth Three Months Ended December 31, 2019 Three Months Ended December 31, 2020 Total Revenue Growth (GAAP) 2.3 % 9.6 % Existing businesses (Non-GAAP) 4.1 % 8.5 % Acquisitions and divestitures (Non-GAAP) —% —% Currency exchange rates (Non-GAAP) (1.
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