Q2 2023 Earnings Results 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, anticipated sales growth, anticipated operating margin expansion, anticipated cash flow, and anticipated earnings growth, and any other statements identified by their use of words like "ant ...

[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=3&type=section&id=Item%201%2E%20Financial%20Statements%20(unaudited)) Vontier's unaudited Q2 and H1 2023 financial statements detail balance sheets, income, equity, cash flows, and notes [Consolidated Condensed Balance Sheets](index=3&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) Total assets decreased to **$4.21 billion**, liabilities to **$3.50 billion**, and equity increased to **$701.4 million** Consolidated Condensed Balance Sheet Highlights (in millions) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $1,276.2 | $1,385.0 | | **Total Assets** | $4,205.6 | $4,343.3 | | **Total Current Liabilities** | $846.2 | $929.9 | | **Long-term Debt** | $2,422.4 | $2,585.7 | | **Total Liabilities** | $3,504.2 | $3,763.8 | | **Total Equity** | $701.4 | $579.5 | [Consolidated Condensed Statements of Earnings and Comprehensive Income (Loss)](index=4&type=section&id=Consolidated%20Condensed%20Statements%20of%20Earnings%20and%20Comprehensive%20Income%20(Loss)) Q2 2023 sales decreased to **$764.4 million**, but net earnings rose to **$97.3 million** due to a business sale gain Key Performance Indicators - Q2 2023 vs Q2 2022 (in millions, except per share amounts) | Metric | Q2 2023 | Q2 2022 | | :--- | :--- | :--- | | Sales | $764.4 | $776.4 | | Gross Profit | $348.1 | $348.1 | | Operating Profit | $120.6 | $136.5 | | Net Earnings | $97.3 | $33.3 | | Diluted EPS | $0.62 | $0.21 | Key Performance Indicators - H1 2023 vs H1 2022 (in millions, except per share amounts) | Metric | H1 2023 | H1 2022 | | :--- | :--- | :--- | | Sales | $1,540.8 | $1,524.5 | | Gross Profit | $701.1 | $683.4 | | Operating Profit | $254.4 | $271.3 | | Net Earnings | $180.1 | $283.5 | | Diluted EPS | $1.15 | $1.73 | [Consolidated Condensed Statements of Cash Flows](index=7&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) H1 2023 operating cash flow improved to **$158.5 million**, investing activities provided **$103.5 million**, and cash increased **$39.5 million** Cash Flow Summary - Six Months Ended (in millions) | Cash Flow Category | June 30, 2023 | July 1, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $158.5 | $48.5 | | Net cash provided by (used in) investing activities | $103.5 | $(220.2) | | Net cash used in financing activities | $(222.6) | $(262.8) | | **Net change in cash and cash equivalents** | **$39.5** | **$(445.2)** | | **Ending balance of cash and cash equivalents** | **$244.0** | **$127.4** | [Notes to the Consolidated Condensed Financial Statements](index=8&type=section&id=Notes%20to%20the%20Consolidated%20Condensed%20Financial%20Statements) Notes explain Q1 2023 segment realignment, a business sale, assets held for sale, and share repurchases - In Q1 2023, the company realigned its internal organization into three new reportable segments: Mobility Technologies, Repair Solutions, and Environmental & Fueling Solutions[21](index=21&type=chunk)[68](index=68&type=chunk) - On April 14, 2023, the company completed the sale of its Global Traffic Technologies business for **$108.0 million**, resulting in a preliminary gain of **$34.1 million**[92](index=92&type=chunk) - The Coats (Hennessy) business was classified as held for sale, with total assets of **$53.5 million** and liabilities of **$29.0 million** as of June 30, 2023[93](index=93&type=chunk)[94](index=94&type=chunk) - During the six months ended June 30, 2023, the company repurchased **2.0 million shares** for **$50.0 million**; as of June 30, 2023, **$378.9 million** remained authorized for future repurchases[91](index=91&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=25&type=section&id=Item%202%2E%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Q2 2023 sales declined **1.5%** due to EMV, despite segment growth; gross margin improved, but operating margin decreased [Overview and Outlook](index=26&type=section&id=Overview%20and%20Outlook) Vontier realigned into three segments, expecting a 2023 total sales decline due to EMV, but mid-single-digit core sales growth - The company now operates through three reportable segments: Mobility Technologies, Repair Solutions, and Environmental & Fueling Solutions[103](index=103&type=chunk) - The 2023 outlook anticipates a year-over-year decline in total sales due to the end of the EMV upgrade cycle, but expects mid-single-digit core sales growth excluding this specific headwind[106](index=106&type=chunk) [Results of Operations](index=27&type=section&id=Results%20of%20Operations) Q2 2023 sales decreased **1.5%** to **$764.4 million** due to EMV, with improved gross margin but declining operating margin Consolidated Sales Growth Components vs. Prior Year | Component | Q2 2023 | H1 2023 | | :--- | :--- | :--- | | Total Sales Growth (GAAP) | (1.5)% | 1.1% | | Core Sales (Non-GAAP) | (1.6)% | 1.1% | | Acquisitions (Non-GAAP) | 0.9% | 1.3% | | Currency Exchange Rates (Non-GAAP) | (0.8)% | (1.3)% | Segment Sales Growth (GAAP) - Q2 2023 vs Q2 2022 | Segment | % Change | | :--- | :--- | | Mobility Technologies | 13.4% | | Repair Solutions | 5.8% | | Environmental & Fueling Solutions | (9.6)% | - Gross profit margin increased by **70 basis points** in both Q2 and H1 2023 compared to the prior year, reaching **45.5%**[108](index=108&type=chunk)[119](index=119&type=chunk)[120](index=120&type=chunk) - Operating profit margin decreased by **180 basis points** to **15.8%** in Q2 2023, primarily due to increased SG&A and R&D expenses[108](index=108&type=chunk)[125](index=125&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) Vontier maintains strong liquidity with **$244.0 million** cash and **$750.0 million** credit, generating **$158.5 million** from H1 2023 operations - The company's liquidity position as of June 30, 2023, included **$244.0 million** in cash and **$750.0 million** of available borrowing capacity[146](index=146&type=chunk) - In the first six months of 2023, the company voluntarily repaid **$165.0 million** of its Three-Year Term Loans Due 2024[148](index=148&type=chunk) - The company repurchased **2.0 million shares** for **$50.0 million** in H1 2023[148](index=148&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=36&type=section&id=Item%203%2E%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes to market risk disclosures occurred in H1 2023 compared to the 2022 Annual Report on Form 10-K - There were no material changes to the market risk information previously disclosed in the Company's 2022 Annual Report on Form 10-K[163](index=163&type=chunk) [Item 4. Controls and Procedures](index=36&type=section&id=Item%204%2E%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting in Q2 2023 - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2023[164](index=164&type=chunk) - No material changes were made to the company's internal control over financial reporting during the second quarter of 2023[165](index=165&type=chunk) [PART II - OTHER INFORMATION](index=37&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=37&type=section&id=Item%201%2E%20Legal%20Proceedings) Management anticipates no material adverse effect on financial condition or operations from current legal proceedings - The company does not expect current legal proceedings to have a material adverse effect on its financial condition or results of operations[167](index=167&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A%2E%20Risk%20Factors) No material changes to risk factors previously reported in the 2022 Annual Report on Form 10-K occurred in Q2 2023 - No material changes to the risk factors disclosed in the 2022 Annual Report on Form 10-K occurred during Q2 2023[169](index=169&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202%2E%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2023, Vontier repurchased **1.1 million** shares at **$28.55**, with **$378.9 million** remaining for future repurchases Share Repurchase Activity - Q2 2023 | Period | Total Shares Purchased (millions) | Average Price Paid per Share | Approximate Dollar Value Remaining for Purchase ($ millions) | | :--- | :--- | :--- | :--- | | April 29 - May 26, 2023 | 1.1 | $28.55 | $378.9 | - The company's Board of Directors approved a replenishment of the share repurchase program in May 2022, bringing the total authorization to **$500.0 million**[170](index=170&type=chunk) [Item 5. Other Information](index=38&type=section&id=Item%205%2E%20Other%20Information) No directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading plans during Q2 2023 - No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans during Q2 2023[174](index=174&type=chunk) [Item 6. Exhibits](index=38&type=section&id=Item%206%2E%20Exhibits) Exhibits include CEO and CFO certifications under Sarbanes-Oxley Act of 2002 and Inline XBRL documents - The report includes required certifications from the CEO and CFO under the Sarbanes-Oxley Act of 2002[175](index=175&type=chunk)

Financial Data and Key Metrics Changes - Reported revenue of $776 million increased by 4% on a core basis, or an 11% baseline increase excluding the impact of the EMV sunset [23] - Adjusted operating profit of $161 million declined slightly versus the prior year, with an adjusted operating profit margin of 20.8%, down approximately 100 basis points [23] - Adjusted earnings per share of $0.68 was above guidance and relatively flat with the prior year despite an $0.11 headwind from EMV [24] - Adjusted free cash flow in the quarter was $78 million, representing 73% conversion ahead of normal seasonality [24] Business Line Data and Key Metrics Changes - **Mobility Technologies**: Sales increased over 18%, with core growth of 12%. DRB grew over 20%, and ANGI sales were up over 30% [25] - **Repair Solutions**: Revenue increased over 10% to $181 million, supported by record sales during the Matco Expo event [28] - **Environmental & Fueling Solutions**: Reported revenues declined approximately 4% to $314 million, but baseline core revenues increased 10% excluding EMV impact [29] Market Data and Key Metrics Changes - Demand for U.S. dispensers is tracking ahead of initial expectations, driven by robust new site builds and site refresh activity [29] - Environmental Solutions demand benefits from regulations across multiple regions, while aftermarket parts leverage a large installed base for growth [30] Company Strategy and Development Direction - The company is focused on a connected mobility strategy, emphasizing operational excellence, core growth acceleration, and leveraging adjacent markets [10][11] - Recent strategic initiatives include the sale of GTT for $107 million to strengthen the balance sheet and return capital to shareholders [9] - The company aims to optimize its cost structure and achieve multiyear margin expansion opportunities [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the outlook due to healthy end markets and strong secular drivers [43] - The company raised its adjusted EPS guidance for the full year, reflecting strong first-quarter results and solid end market demand [36] - Management remains vigilant in the current macro environment but is optimistic about the fundamentals and momentum of the strategy [10] Other Important Information - The company is targeting a reduction in absolute Scope 1 and Scope 2 emissions by 45% and Scope 3 emissions by 25% by 2030 [21] - The company has a diverse customer base across various sectors, including car wash, multi-energy fueling, and convenience retail, which are facing common challenges [39] Q&A Session Summary Question: Can you help us understand the core sales outlook for the second quarter? - Management indicated confidence in the outlook due to healthy markets and strong secular tailwinds across all segments [43][45] Question: What is the phasing of the $300 million EMV sales headwinds through the year? - The EMV headwind is more back-end weighted, with approximately 60% expected in the second half of the year [47] Question: How were orders tracking versus Q4? - Orders remained strong with a book-to-bill of 1, despite accelerated backlog deliveries due to easing supply chain conditions [48][49] Question: What was the breakdown of price versus volume in organic growth? - Approximately 40% of the growth came from price, with 60% from volume growth [50] Question: Can you discuss the franchisee momentum in Repair Solutions? - The company reported strong franchisee additions in Q1, indicating a positive outlook for the Matco business [55] Question: What are the expectations for pricing across businesses in Q1 and for the full year? - Pricing contributed about 4% to baseline growth in Q1, with expectations for 2% to 3% price increases for the full year [63]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 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 001-39483 ________________________________________________ Vontier Corporation (Exa ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________ FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 001-39483 ________________________________________________ VONTIER CORPORATION (Exact na ...

Vontier Corporation (NYSE:VNT) Q4 2022 Earnings Conference Call February 16, 2023 8:00 AM ET Company Participants Ryan Edelman - Vice President-Investor Relations Mark Morelli - President & Chief Executive Officer Anshooman Aga - Senior Vice President & Chief Financial Officer Conference Call Participants Andy Kaplowitz - Citigroup Nigel Coe - Wolfe Research Jeff Sprague - Vertical Research Partners Julian Mitchell - Barclays David Raso - Evercore ISI David Ridley-Lane - Bank of America Joe Ritchie - Goldma ...

NONTIER 1 First Quarter 2022 Earnings Release May 5, 2022 2 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 revenue growth, anticipated operating margin expansion, anticipated cash flow, and anticipated earnings growth, and any other statements identified by their u ...

Information Relating to Forward-looking Statements [Summary of Risk Factors](index=4&type=section&id=Summary%20of%20Risk%20Factors) This section summarizes key investment risks for Vontier, covering business, Fortive separation, common stock, strategy, and growth - Investment in Vontier is subject to risks related to business, separation from Fortive, common stock ownership, strategy implementation, and growth[14](index=14&type=chunk) - Key business risks include the ongoing impact of the COVID-19 pandemic, changes in industry standards and governmental regulations, dependence on timely technological innovation, potential liabilities from acquisitions, extensive regulatory compliance, international economic and political factors, goodwill impairment, asbestos-related litigation, and restructuring adverse effects[16](index=16&type=chunk)[20](index=20&type=chunk) - Risks related to the separation from Fortive include outstanding indebtedness of approximately **$2.7 billion**, potential inability to generate sufficient cash to service debt, challenges in consummating acquisitions, changes in tax rates, adverse changes in distributor relationships, fluctuations in commodity costs, supply chain disruptions, and potential indemnification liabilities to Fortive[20](index=20&type=chunk) Part I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Vontier is a global industrial technology company providing critical equipment, software, and services for mobility infrastructure - Vontier Corporation is a global industrial technology company focused on critical technical equipment, components, software, and services for the mobility infrastructure industry worldwide[19](index=19&type=chunk) - The company's operations span approximately **30 countries** across North America, Asia Pacific, Europe, and Latin America[20](index=20&type=chunk) - Vontier is guided by its Vontier Business System (VBS) for continuous improvement in innovation, product development, supply chain, sales, marketing, and leadership development[21](index=21&type=chunk) [General Business Overview](index=5&type=section&id=General) Vontier offers diverse mobility infrastructure solutions, including sensors, fueling equipment, software, and vehicle repair tools - Vontier supplies solutions including advanced environmental sensors, fueling equipment, field payment hardware, point-of-sale, workflow and monitoring software, vehicle tracking and fleet management, traffic light control software, and vehicle mechanics' equipment[19](index=19&type=chunk) - The company serves retail and commercial fueling operators, convenience stores, car wash operators, commercial vehicle repair businesses, municipal governments, public safety entities, and fleet owners/operators globally[19](index=19&type=chunk) - In 2021, **$454.1 million** of sales came from high-growth markets, defined as developing markets with accelerated GDP and infrastructure growth[22](index=22&type=chunk) [Reportable Segment](index=7&type=section&id=Reportable%20Segment) Vontier operates as a single reportable segment, combining mobility technologies and diagnostics & repair due to interrelated products and economics - Vontier operates through one reportable segment, which combines two operating segments: mobility technologies and diagnostics and repair technologies[32](index=32&type=chunk) - The aggregation is based on interrelationships of products, technologies, customers, and similar long-term economic characteristics[32](index=32&type=chunk) [Mobility Technologies Products and Solutions](index=7&type=section&id=Mobility%20Technologies%20Products%20and%20Solutions) The mobility technologies segment offers solutions for fueling, car wash, telematics, and smart city solutions - Mobility technologies include retail/commercial fueling solutions (environmental monitoring, fuel dispensers, EV chargers, point-of-sale, remote monitoring), car wash solutions (point-of-sale, workflow software), telematics (SaaS for fleet management), and smart city solutions (traffic management for public transit and emergency vehicles)[33](index=33&type=chunk) - Key brands in this segment include ANGI, Gilbarco, Orpak, Red Jacket, Veeder-Root, Patheon, SiteWatch, Suds, TunnelWatch, NoPileups, FastPass, Washify, InvoMax, Auto Data, Sage Microsystems, Teletrac Navman, GTT, and Opticom[23](index=23&type=chunk)[24](index=24&type=chunk)[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk)[33](index=33&type=chunk) [Diagnostics and Repair Technologies Products and Solutions](index=8&type=section&id=Diagnostics%20and%20Repair%20Technologies%20Products%20and%20Solutions) This segment provides vehicle repair tools, diagnostic equipment, and wheel-service equipment under Matco, Ammco, and Coats brands - The segment manufactures and distributes vehicle repair tools, toolboxes, and automotive diagnostic equipment and software through franchised mobile distributors under the Matco brand[28](index=28&type=chunk)[39](index=39&type=chunk) - It also produces a full line of wheel-service equipment, including brake lathes, tire changers, wheel balancers, and wheel weights, marketed under the Ammco and Coats brands through a distributor network[29](index=29&type=chunk)[39](index=39&type=chunk) [Research and Development](index=8&type=section&id=Research%20and%20Development) Vontier conducts R&D to create new products, enhance existing ones, and expand applications, expensing all costs - Research and development activities focus on new product development, enhancing existing product functionality, effectiveness, ease of use, and reliability, and expanding product applications[36](index=36&type=chunk) - All research and development costs are expensed as incurred[36](index=36&type=chunk) [Materials](index=8&type=section&id=Materials) Vontier's manufacturing relies on raw materials, managing supply risks but faced 2021 constraints, particularly for semiconductors - Manufacturing operations use raw materials such as electronic components, steel, plastics, cast iron, aluminum, and copper, sourced globally from numerous independent suppliers[37](index=37&type=chunk) - Supply chain risks are addressed using safety stock, alternative materials, and qualifying multiple supply sources[37](index=37&type=chunk) - In 2021, the company faced supply chain constraints, especially for semiconductors and electronic components, which led to an increase in backlog[38](index=38&type=chunk) [Intellectual Property](index=8&type=section&id=Intellectual%20Property) Vontier holds numerous patents, trademarks, copyrights, and trade secrets, with no single asset materially important to the business - The company owns numerous patents, trademarks, copyrights, and trade secrets, and holds licenses to intellectual property owned by others[38](index=38&type=chunk) - No single patent, trademark, copyright, trade secret, or license is considered materially important to any operating segment or the business as a whole[38](index=38&type=chunk) [Competition](index=9&type=section&id=Competition) Vontier operates in highly competitive markets, facing diverse competitors, and believes it holds market leadership - Vontier operates in highly competitive markets, facing regional, specialized, and larger competitors[40](index=40&type=chunk) - Key competitive factors include price, quality, performance, delivery speed, applications expertise, distribution channel access, service and support, technology and innovation, breadth of offerings, and brand name recognition[40](index=40&type=chunk) - Management believes the company holds a market leadership position in most of its served markets[40](index=40&type=chunk) [Seasonal Nature of Business](index=9&type=section&id=Seasonal%20Nature%20of%20Business) While some segments show seasonal trends, Vontier's business as a whole is not subject to material seasonality - Certain businesses experience seasonal trends, such as stronger capital equipment sales in the fourth calendar quarter and OEM sales stronger around new product launches[41](index=41&type=chunk) - Overall, Vontier is not subject to material seasonality[41](index=41&type=chunk) [Working Capital](index=9&type=section&id=Working%20Capital) Vontier maintains adequate working capital, with no unusual industry practices or requirements for working capital items - The company maintains an adequate level of working capital to support business needs[42](index=42&type=chunk) - There are no unusual industry practices or requirements related to working capital, and sales and payment terms are generally similar to competitors[42](index=42&type=chunk) [Backlog](index=9&type=section&id=Backlog) Vontier's backlog, including unfilled orders and SaaS contract value, increased to **$733.9 million** in 2021, mostly for H1 2022 Backlog (in millions) | Year | Backlog | | :--- | :--- | | 2021 | $733.9 | | 2020 | $542.5 | - Backlog includes unfilled orders and the annual average contract value of signed contracts for SaaS offerings[43](index=43&type=chunk) - The majority of unfilled orders as of December 31, 2021, are expected to be delivered within the first half of 2022, making backlog indicative of short-term sales performance[43](index=43&type=chunk) [Human Capital Resources](index=9&type=section&id=Human%20Capital%20Resources) Vontier focuses on attracting, motivating, retaining, and developing diverse talent through competitive pay, benefits, and programs - Vontier's human capital objectives are to attract, motivate, retain, and develop high-quality talent, fostering a culture of continuous improvement[44](index=44&type=chunk) - As of December 31, 2021, Vontier employed approximately **8,500 persons** globally (**4,100** in the US, **4,400** outside the US), with about **1,000** US employees being hourly-rated and unionized[45](index=45&type=chunk) - Key programs include Inclusion, Diversity & Equity (ID&E) initiatives with eight employee-led Employee Resource Groups (ERGs), health and wellness resources (including mental health support), talent development programs, and community/social impact initiatives like Vontier Cares and Day of Caring[46](index=46&type=chunk)[51](index=51&type=chunk) [Government Contracts](index=10&type=section&id=Government%20Contracts) Government entities represent a minority of Vontier's 2021 revenue, but the company is subject to government contractor regulations - The substantial majority of 2021 revenue was from non-governmental customers[48](index=48&type=chunk) - The company is subject to various statutes and regulations applicable to companies doing business with governments and government-owned entities[48](

Financial Data and Key Metrics Changes - For the full year 2021, adjusted earnings per share (EPS) was $2.88, reflecting a 17% increase driven by 6% sales growth, including 7.4% core revenue growth and 160 basis points of adjusted core operating margin expansion [7][8] - Adjusted net earnings for Q4 2021 were $141 million, a decrease of 4% from $147 million in the prior-year period, translating to adjusted net earnings per share of $0.83 [21] - Adjusted operating profit for Q4 was $194 million, a decrease of 3% compared to the prior year, primarily driven by lower revenue volumes [23] Business Line Data and Key Metrics Changes - eMobility Technology's core revenue declined 11%, reflecting a low double-digit decline at TBR, while the acquisition of DRB contributed high-teen sales growth [25][26] - Core revenue growth in the Diagnostics and Repair Technologies platform was 2%, driven by low single-digit growth at Matco, despite supply and labor constraints [27] - The mobility technologies total revenue declined 4.5% in Q4, with DRB's performance being a highlight [26] Market Data and Key Metrics Changes - Developed markets core revenue declined mid-single-digits due to EMV impacts in North America, while high-growth markets saw a decline of about 20% compared to mid-teens growth in the prior-year Q4 [28] - The company remains confident in long-term growth opportunities in regions such as India, the Middle East, Africa, and Latin America [28] Company Strategy and Development Direction - The company is focused on portfolio diversification and has committed to invest over $500 million in energy transition initiatives over the next five years [13][14] - The acquisition of Driivz, a provider of EV charging and energy management software, is part of the strategy to capitalize on global EV charging growth [14] - The company anticipates a full-year 2022 adjusted diluted net EPS guidance range of $3.05 to $3.15, reflecting core revenue growth expectations of low to mid-single digits [17][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to offset EMV headwinds and expects earnings and cash flow growth through this period [19][35] - The company is optimistic about underlying demand for its solutions and order growth, despite supply chain challenges [35] - Management noted that supply chain impacts are expected to improve in the second half of the year [20] Other Important Information - The company achieved adjusted free cash flow conversion of 96% for the year, with a cash balance of $573 million at the end of Q4 [8][25] - The company is committed to reducing greenhouse gas emissions by 45% by 2030 and achieving net zero by 2050 [11] Q&A Session Summary Question: Clarification on EMV revenue trajectory - Management clarified that EMV revenue was in the low $600 million range for 2021, with a projected decline of $25 million to $50 million in 2022 and a further decline of $300 million to $350 million in 2023 [43][44] Question: Expectations for 2022 growth - Management indicated that they expect low-to-mid single-digit growth for 2022, driven by improvements in supply chain and backlog [60][61] Question: Pricing actions in Q4 and expectations for 2022 - Management reported a price increase of approximately 3% in Q4 and anticipates continued pricing for inflation in 2022 [67][68] Question: Capital redeployment discussions - Management acknowledged the dislocation of value in the stock and indicated that share repurchase and M&A opportunities are not mutually exclusive [75][76] Question: Status of Tridium commercial agreement - Management confirmed that the lock-up for Tridium ends in July and expressed support for Tridium's value proposition [86] Question: Margin expansion at Teletrac Navman - Management attributed the 200 basis points margin expansion to improvements in churn and repositioning for profitable growth [89]

Q3 2021 Financial Performance - Revenue increased to $769 million from $747 million, a 2.9% total growth[11] - Core revenue growth was 0.8%[9, 11] - Adjusted Diluted Net EPS remained at $0.80[9, 11] - Adjusted Core Operating Margin Expansion was +70 bps[9, 11] - Adjusted Gross Margin Expansion was +90 bps[9, 11] Free Cash Flow - Adjusted Free Cash Flow was $119 million, a 45% decrease[16] - Adjusted Free Cash Flow conversion was 87% of Adjusted Net Earnings[16] - Year-to-date Adjusted Free Cash Flow was $320 million, a 22% decrease[16] - Year-to-date Adjusted Free Cash Flow conversion was 92% of Adjusted Net Earnings[16] FY21 Outlook - FY21 Adjusted EPS guide raised to $2.82 - $2.86, including $0.04 to $0.05 from DRB[9] - Expect Adjusted EPS growth excluding EMV > +20%[9]