Fortive : Investor Day 2025 - Presentation

Published: 2025-06-10 07:34:08 ET FTV

Published on 06/10/2025 at 07:34

June 10, 2025

Fortive Investor Day

Welcome

Elena Rosman Vice President Investor Relations

Forward-looking statements, non-GAAP financial measures and basis of presentation

FORWARD-LOOKING STATEMENTS

Statements in this presentation that are not strictly historical, including statements regarding anticipated financial results, global and regional economic conditions, industry trends, geopolitical events, future acquisitions, impact of trade policies, the ability to execute the planned strategies, secular trends, our plans to separate into two independent, publicly-traded companies, including the timing and cost related to the planned separation, interest rate and current exchange rate impact, future prospects, shareholder value, and any other statements identified by their use of words like "anticipate," "expect," "believe," "outlook," "guidance," "target", or "will" or other words of similar meaning, are "forward-looking

statements" within the meaning of the United States federal securities laws. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: deterioration of or instability in the economy, the markets we serve, geopolitical conditions and conflicts, international trade policies and the financial markets, security breaches or other disruptions of our information technology systems, supply chain constraints, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, changes in trade relations with other countries, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or

business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international

economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and

income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, adverse effects of restructuring activities, risk related to tax treatment of our prior or pending separation, impact of our indemnification obligation to Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form

10-K for the year ended December 31, 2024 and the Quarterly Report on Form 10-Q for the quarter ended March 28, 2025. These forward-looking statements speak only as of the date of this presentation, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

NON-GAAP FINANCIAL MEASURES

This presentation may contain references to financial measures not presented in accordance with generally accepted accounting principles ("GAAP"). We have not reconciled forward-looking targets or outlook regarding non-GAAP measures because any corresponding GAAP measures and the reconciliations thereto would require us to make estimates or assumptions with precision about acquisitions, capital and other expenditures and similar adjustments during the relevant

period. Information required by Regulation G with respect to historical non-GAAP financial measures are set forth in the appendix to this presentation and the "Investors" section of our website, https://www.fortive.com, under the heading "Financial Results".

All growth or period changes refer to year-over-year comparisons unless otherwise stated. Forward looking financial information not otherwise presented as a range reflect assumptions underlying the midpoint of our forward-looking targets.

BASIS OF PRESENTATION

References to "New Fortive" means Fortive businesses assuming that the planned separation of the Precision Technologies Segment had been completed at the beginning of the applicable period. The New Fortive financial information

accompanying these materials presents a summary of Fortive's results for fiscal years ended December 31, 2022, 2023, 2024 and the quarter ended March 28, 2025, had the results of the Precision Technologies Segment been presented as discontinued operations. Discontinued operations reporting will be reflected retrospectively in Fortive's future filings, but in no way revises or restates any Consolidated Statements of Earnings, Consolidated Balance Sheets, Consolidated

Statements of Stockholders' Equity or Consolidated Statements of Cash Flows for Fortive for any period previously filed with the U.S. Securities and Exchange Commission.

The New Fortive financial information included in these materials also presents a summary of Fortive's results for fiscal years ended December 31, 2019, 2020, and 2021 had the results of the Precision Technologies Segment been presented as discontinued operations by means of applying certain management estimates to these historical periods. Specifically, actual historical tax rates for Fortive, without consideration of the Precision Technologies Segment as a discontinued

operation, were utilized. On a GAAP basis the effective tax rate applied was 20.4%, 3.7%, and 9.3% for 2019, 2020, and 2021, respectively. On an adjusted non-GAAP basis, the effective tax rate applied was 14.5%, 12.4%, and 12.3%, for 2019, 2020, and 2021, respectively.

New Fortive emerges from Ralliant spin-off

Intelligent Operating Solutions

Advanced Healthcare Solutions

Intelligent Operating Solutions (IOS)

Advanced Healthcare Solutions (AHS)

Precision Technologies (PT)

Current Fortive New Fortive

Spin effective June 28, 2025

Precision Technologies

Welcome

Elena Rosman

VP, Investor Relations

Introduction to New Fortive

Olumide Soroye

Incoming President & CEO

Agenda

Advanced Healthcare Solutions (AHS) Spotlight:

Advanced Sterilization Products (ASP)

Intelligent Operating Solutions (IOS) Spotlight:

Fluke

Intelligent Operating Solutions (IOS) Spotlight:

Facility and Asset Lifecycle (FAL) Software

Chad Rohrer

Group President

Parker Burke

Group President

Arul Elumalai

Group President

Financial Overview

Mark Okerstrom

Chief Financial Officer

Q&A All Presenters

Closing Remarks

Olumide Soroye

Incoming President & CEO

Disclaimer

Fortive Corporation published this content on June 10, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on June 10, 2025 at 11:33 UTC.