Ø FORTIVE | --- | --- | --- | --- | |--------------------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | | | | | First Quarter 2022 | | | | | Earnings Release | | | | 2 FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Statements in this presentation that are not strictly historical, including statements regarding anticipated financial results, economic conditions, future prospects, impact of supply chain constraints, duration and impact of COVID-19 pandemic and the correspondin ...

Financial Performance & Expectations - Fortive anticipates approximately $5.8 billion in revenue for 2022[4] - The company projects a 17% 2-year stack core growth[4] - Fortive expects an adjusted operating profit margin of 24% and a free cash flow (FCF) margin of 20% for 2022[4] - The company's recurring revenue is expected to be approximately 40% in 2022[4,8,12] - Software revenue is expected to be around $950 million in 2022[8,12] Portfolio Evolution & Strategy - Fortive has deployed over $7 billion in net capital through M&A[6] - The company's M&A activities have led to approximately $2.3 billion in acquired revenue, showing a low double-digit (LDD) growth[6] - Intelligent Operating Solutions contribute approximately 40% of sales[11] - Advanced Healthcare Solutions contribute approximately 25% of sales[11] - Precision Technologies contribute approximately 35% of sales[11]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37654 ____________ FORTIVE CORPORATION (Exact name of registrant as specified in its c ...

Financial Highlights - Q4 2021 revenue reached $1.4 billion, a 3.8% year-over-year increase[6] - Full-year 2021 revenue totaled $5.3 billion, up 13.1% year-over-year[6] - Q4 2021 adjusted operating profit was $335 million, with a margin of 24.4%[6] - Full-year 2021 adjusted operating profit was $1.2 billion, with a margin of 23.1%[6] - Q4 2021 adjusted earnings per share (EPS) was $0.79, a 12.9% year-over-year increase[6] - Full-year 2021 adjusted EPS was $2.75, up 31.6% year-over-year[6] - Full-year 2021 core growth was 9.5%[6] Free Cash Flow - Q4 2021 free cash flow was $265 million, a 15.2% year-over-year decrease[6] - Full-year 2021 free cash flow was $943 million, up 4.5% year-over-year[6] 2022 Outlook - The company anticipates 5.5% to 8.5% core growth in 2022[35, 38] - The company expects total software revenue to grow strongly in double digits in 2022 to approximately $950 million[36] - The company projects adjusted EPS between $3.00 and $3.13, representing a 9% to 14% increase[38]

Financial Data and Key Metrics Changes - The company reported total revenue growth of 3.8% year-over-year with core growth of 1% in Q4 2021, with acquisitions contributing over 3 points of growth primarily from ServiceChannel [39] - Adjusted gross margins approached 58% in the quarter, and operating margins were 24.4%, reflecting 190 basis points of core operating margin expansion [40] - Free cash flow generated in Q4 was $265 million, representing 92% conversion of adjusted net income [43] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) posted total revenue growth of 6.4% in Q4, with core growth of 0.8%, driven by low single-digit growth in North America and high-teens growth in China [14] - Precision Technologies segment saw total revenue increase of 2.1% with core growth of 2.6%, including mid-teens growth in China [21] - Advanced Healthcare Solutions reported total revenue increase of 1.5%, despite a core revenue decline of 0.8% [24] Market Data and Key Metrics Changes - North America revenues were roughly flat, reflecting strong demand across multiple end markets, offset by supply chain constraints [41] - Western Europe experienced year-over-year declines across much of the portfolio, while Asia and high-growth regions grew revenues in double digits, driven by mid-teens growth in China [42] - The company noted that elective procedure rates in the U.S. were lower than anticipated, impacting revenue in the Advanced Healthcare Solutions segment [24][68] Company Strategy and Development Direction - The company is focused on delivering long-term sustainable value creation through its disciplined application of the Fortive Business System [12] - Significant progress was made in executing the M&A strategy in 2021, with acquisitions like ServiceChannel and Provation expected to enhance growth and free cash flow profiles [30][34] - The company aims to continue building a more resilient growth company capable of converting more revenue to earnings and more earnings to cash [49] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain constraints and the impact of the Omicron variant on operations, but expressed confidence in strong demand and backlog levels [9][65] - The outlook for 2022 includes expectations for differentiated growth and margin expansion, with revenue guidance in the range of $5.7 billion to $5.9 billion [48] - Management indicated that elective procedures are expected to remain flat to 2021 levels, with potential upside if conditions improve [76][78] Other Important Information - The company reported a tax rate of approximately 9% for the quarter, flat year-over-year, but lower than expectations [10] - The company has made significant progress towards sustainability goals, including carbon emission reduction targets and responsible sourcing initiatives [35][37] Q&A Session Summary Question: Follow-up on organic sales guidance for the year - Management expressed confidence in the acceleration of core growth in the second half of the year, supported by strong order momentum and record backlog levels [64] Question: Assessment of Advanced Healthcare Solutions competitive position - Management noted good growth outside the U.S. and strong margin expansion, indicating a positive outlook for the segment despite challenges in elective procedures [68] Question: Expectations for core growth trajectory throughout the year - Management indicated gradual acceleration in core growth, with expectations to exit the year at a strong rate due to improving supply chain conditions [74] Question: Supply chain resilience strategies - Management discussed countermeasures being implemented to enhance supply chain resilience, including qualifying new suppliers and redesigning platform architectures [81] Question: Total software revenue growth and SaaS metrics - Management reported low double-digit software growth in Q4 and high single-digit ARR growth, indicating positive momentum in software-enabled solutions [87] Question: Clarification on backlog and inventory levels - Management confirmed that the backlog is primarily driven by demand rather than inventory buildup, with good sales out and demand environment [92]

| --- | --- | --- | --- | |------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | MORGAN STANLEY VIRTUAL 9TH ANNUAL LAGUNA CONFERENCE SEPTEMBER 15, 2021 | | | | FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Statements in this presentation that are not strictly historical, including statements regarding business and acquisition opportunities, timing of acquisitions and other transactions, anticipated financial results, economic condi ...

Second Quarter 2021 Earnings Release July 29, 2021 1 FORWARD LOOKING STATEMENTS & NON-GAAP FINANCIAL MEASURES Statements in this presentation that are not strictly historical, including statements regarding the future impact of the COVID-19 pandemic, the Company's anticipated financial results, business, investment and acquisition opportunities, timing of acquisitions, dispositions and other transactions, anticipated revenue, anticipated operating margin, anticipated cash flow, economic conditions, future p ...

Financial Data and Key Metrics Changes - The company reported a total revenue growth of 26.7% year-over-year, exceeding the high end of guidance [15] - Adjusted operating margin was 22.2%, with adjusted earnings per share at $0.66, representing a year-over-year increase of 53.5% [15] - Free cash flow generated was $282 million, representing 118% conversion of adjusted net income [15][30] Business Line Data and Key Metrics Changes - The Intelligent Operating Solutions (IOS) segment posted total revenue growth of 31.2%, with mid-20% core growth in North America and low 30% core growth in Western Europe [16] - Precision Technologies segment saw a total revenue increase of 25.1%, with Tektronix increasing by approximately 30% [22] - Advanced Healthcare Solutions (AHS) total revenue increased by 21.8%, including 11% core growth [25] Market Data and Key Metrics Changes - Fluke core revenue increased in the mid-30% range, with strong demand across its businesses [16] - In China, IOS experienced low 20% core growth, while Precision Technologies had mid-teens growth [16][22] - The AHS segment reported high single-digit core growth in North America, Western Europe, and China [25] Company Strategy and Development Direction - The company is focusing on expanding its software capabilities to address critical workflow needs and accelerate digital transformation for customers [10] - The acquisition of ServiceChannel is expected to enhance the company's ability to meet evolving needs of facility owners globally [13] - The company aims to leverage its strong free cash flow and M&A capacity to pursue organic and inorganic growth initiatives [36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing recovery in key end markets and the ability to capitalize on post-COVID return to work challenges [11][36] - The company anticipates continued strong performance in the second half of 2021, raising its full-year guidance for adjusted diluted net earnings per share to $2.65 to $2.75 [31] - Management highlighted the importance of sustainability and inclusion efforts, committing to significant greenhouse gas reduction goals [35] Other Important Information - The company completed the separation of its Industrial Technologies segment through the spinoff of Vontier Corporation on October 9, 2020 [4] - The deployment of the Fortive Business System has driven innovation and growth across the portfolio, with significant improvements in R&D efficiency [12] Q&A Session Summary Question: AHS margin guidance for Q4 - Management indicated that margins could reach the mid to high 20s due to expected revenue acceleration from elective surgeries and seasonal revenue increases [41][44] Question: Impact of cost increases on margins - Management confirmed that there were $60 million of snapback costs and an additional $15 million in investments that impacted Q2 margins [47] Question: Channel inventories and demand - Management noted that point of sale improved significantly, and they are monitoring orders on hand to ensure they are not building excess inventory [53][54] Question: Growth in new verticals for Tektronix - Management reported increased sales in automotive and data centers, indicating a positive outlook for growth in these new verticals [56][57] Question: Professional services growth and site access - Management expects double-digit growth in professional services in the second half, with improved site access aiding in closing deals [68] Question: Supply chain constraints - Management acknowledged ongoing supply chain challenges but expressed confidence in their ability to meet demand due to established lean manufacturing capabilities [75] Question: Growth outlook in China - Management remains optimistic about growth in China, particularly for Fluke and Tektronix, expecting mid-teens growth for the full year [82]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37654 ____________ FORTIVE CORPORATION (Exact name of registrant as specified in its c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-37654 ____________ FORTIVE CORPORATION (Exact name of registrant as specified in its c ...