(9) FORTIVE | --- | --- | --- | --- | |---------------------------|-------|-------|-------| | | | | | | | | | | | Wolfe Industrial Growth & | | | | | Technology Conference | | | | 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, anticipated market opportunities, business and acquisition opportunities, and any other statements identif ...

Financial Data and Key Metrics Changes - Total revenue growth of 9.3% year-over-year with core growth of 5.3% [34] - Adjusted gross margins increased by 60 basis points to 57.6% [37] - Adjusted operating margins increased to 23%, reflecting a 30 basis points expansion year-over-year [37] - Adjusted earnings per share rose 11% to $0.70, with free cash flow generation of $196 million [38] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) saw total revenue up 15% with core growth of 8.7%, driven by strong demand in North America and Western Europe [19] - Precision Technologies (PT) revenues grew 3.4% with core revenue growth of 4.6%, impacted by a low double-digit decline in China due to COVID lockdowns [22] - Advanced Healthcare Solutions (AHS) revenue increased 8.5% with core revenue growth of 0.6%, facing challenges in China and Western Europe [25] Market Data and Key Metrics Changes - North America revenue was up high single digits, with low teens growth in software and related services [35] - Western Europe revenues grew mid-single-digit, offsetting declines in advanced healthcare solutions [35] - China revenues declined low teens, but backlog in China showed high teens order growth [36] Company Strategy and Development Direction - The company aims to build a more resilient, less cyclical business model, focusing on high recurring revenue and software-enabled workflow solutions [46][47] - The M&A pipeline remains robust with an estimated capacity of approximately $5 billion over the next three years [15] - The company is committed to sustainability and innovation, with plans to publish its fifth sustainability report [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to weather potential economic slowdowns due to strong backlog and recurring revenue streams [56] - The company anticipates sustained core growth driven by strong customer demand and record backlog, with expectations for strong margin expansion [14] - Management highlighted the importance of countermeasures to mitigate supply chain challenges and improve operational performance [77] Other Important Information - The company executed a share buyback of approximately 1 million shares totaling $64 million in the first quarter [15] - The company has doubled its recurring revenue as a percentage of total revenue to approximately 40% since 2016 [47] Q&A Session Summary Question: What is the current situation in China regarding the economy and order pace? - Management noted that orders were up double-digit despite shutdowns, with commercial activities remaining strong [54] Question: How would the company handle a potential mild global recession? - Management indicated that the strong backlog would provide a buffer, allowing the company to dip into backlog if necessary [56] Question: Can you elaborate on the adjusted operating margin expectations? - Management explained that while revenues were flat, they expect margins to improve in Q2 due to various factors including service channel integration [62] Question: What is the outlook for orders in the current quarter? - Management reported good order strength across regions, with a positive outlook for durability in order patterns [66] Question: What tangible steps have been taken to improve volume output? - Management highlighted the effectiveness of countermeasures and improvements in supply chain management as key factors [76] Question: How is the performance of Accruent and Gordian? - Management confirmed that both businesses had a good quarter, with Accruent showing signs of growth and Gordian performing strongly [86]

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]

Fortive Corp Brands, Inc. (NYSE:FTV) Q3 2021 Earnings Conference Call October 28, 2021 5:00 PM ET Company Participants Griffin Whitney - VP, IR James Lico - President, CEO & Director Charles McLaughlin - SVP & CFO Conference Call Participants Scott Davis - Melius Research Deane Dray - RBC Capital Markets Jeffrey Sprague - Vertical Research Partners Andrew Obin - Bank of America Merrill Lynch Julian Mitchell - Barclays Bank Nigel Coe - Wolfe Research Joshua Pokrzywinski - Morgan Stanley Markus Mittermaier - ...

| --- | --- | --- | --- | |------------------------------------------------------------------------|-------|-------|-------| | | | | | | | | | | | 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 ...