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]

NONTIER 1 Second Quarter 2021 Earnings Release August 6, 2021 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 the ...

NONTIER" Bank of America Securities 2021 Virtual Transportation, Airlines, and Industrials Conference May 20, 2021 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 ...

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for Q1 2021 was $0.63, a 43% increase year-over-year, exceeding guidance by $0.08 [9][20] - Adjusted net earnings for Q1 were $108 million, up 44% from $75 million in the prior year [20] - Core revenue growth in Q1 was 14.3%, driven by approximately 15% growth in non-EMV sales [21] - Adjusted operating profit for Q1 was $151 million, a 41% increase compared to the prior year [22] - Adjusted free cash flow for Q1 was $156 million, representing a conversion rate of 145% [23] Business Line Data and Key Metrics Changes - Mobility Technologies saw core revenue growth of 12.7%, primarily due to mid-teens growth in GVR [26] - Diagnostics and repair technologies platform experienced core revenue growth of 18.6%, driven by strong demand at Matco [27] - High-growth markets grew more than 25% year-over-year, with significant contributions from India and Latin America [21][28] Market Data and Key Metrics Changes - Developed markets grew low double-digits, with mid-teens growth in North America, partially offset by softness in Western Europe [28] - High-growth markets showed strong growth, particularly in India and Mexico [21][28] Company Strategy and Development Direction - The company is focusing on profitable growth initiatives and operational milestones, leveraging the Vontier Business System (VBS) [10][38] - There is a commitment to M&A as a top priority for capital deployment, with a healthy pipeline of non-ICE targets [54][57] - The company is navigating supply chain constraints and inflationary pressures while maintaining a focus on integrity and employee support [14][15][16] Management's Comments on Operating Environment and Future Outlook - Management raised full-year 2021 adjusted diluted net EPS guidance to $2.55 - $2.65, reflecting expectations for low to mid-single-digit core revenue growth [17] - The company anticipates continued challenges with supply chain and inflation but remains confident in managing these headwinds [15][32] - Management expects first-half adjusted EPS growth of approximately 40%, offset by a decline in the second half [36] Other Important Information - The company closed on $1.6 billion of senior notes at an average interest rate under 2.5%, improving its debt structure [24] - Net leverage decreased to 1.9 times from 2.2 times at the end of 2020, positioning the company favorably for M&A [25] Q&A Session Summary Question: Insights on second half 2021 expectations - Management indicated improved top-line visibility due to growth initiatives and better traction in high-growth markets, leading to a slight increase in second half expectations [44][46] Question: Impact of COVID in high-growth markets, particularly India - Management acknowledged the tragic situation in India but remains optimistic about growth in other high-growth markets [48] Question: M&A pipeline details - The company has a healthy pipeline focused on non-ICE targets, with opportunities in retail solutions and smart cities [53][54] Question: EMV backlog and its impact - Management confirmed the backlog remains strong, with expectations of a year-over-year decline impacting the second half of the year [62][65] Question: Margin outlook and restructuring charges - Management expects a significant step-up in second half profitability, with restructuring charges anticipated to be around $20 million for the year [71] Question: Supply chain constraints and inventory management - Management is looking to rebuild inventory while navigating supply chain pressures, indicating a desire for more inventory in the system [126]

NONTIER® 1 First Quarter 2021 Earnings Release May 6, 2021 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 ...