Fortive Corporation Summary preliminary adjusted financial data US $ in millions

Transcription

1 Summary preliminary financial data Fortive Corporation (the Company ) is providing the following unaudited financial data of the Company for the fiscal years ended 2014 and and the fiscal quarters ended April 3,, July 3,, October 2,, and April 1, The non- financial measures set forth in this presentation should not be considered in isolation or as a substitute for the financial measures but should be read in conjunction with the reconciliations provided herein and the historical Financial Statements, and the Description of Material Indebtedness section included in the Information Statement furnished with the Company s Current Report on Form 8-K filed on June 15, April 3, July 3, October 2, Segment data Sales Professional Instrumentation... $ 3,121.6 $ $ $ $ $ 2,974.2 $ Industrial Technologies... 3, , Total... $ 6,337.2 $ 1,513.5 $ 1,564.9 $ 1,524.6 $ 1,575.8 $ 6,178.8 $ 1,474.7 Three Months Ended April 1, 2016 sales from existing businesses (core growth) (1) Professional Instrumentation % 5.5% 1.5% 0.5% (7.0)% % (5.5)% Industrial Technologies % 8.5% 4.0% 5.0% 2.0% 5.0% 2.5% Total % 7.5% 2.5% 3.0% (2.5)% 2.5% (1.5)% operating profit (2) Professional Instrumentation... $ $ $ $ $ $ $ Industrial Technologies Total segment operating profit... 1, , Other... (61.4 ) (14.4 ) (15.8 ) (14.8 ) (16.7 ) (61.7 ) (13.7 ) Total... $ 1,204.6 $ $ $ $ $ 1,230.9 $ Certain earnings data Sales... $ 6,337.2 $ 1,513.5 $ 1,564.9 $ 1,524.6 $ 1,575.8 $ 6,178.8 $ 1,474.7 Gross profit... $ 3,049.2 $ $ $ $ $ 3,000.0 $ operating profit... $ 1,204.6 $ $ $ $ $ 1,230.9 $ net earnings of acquisition-related... $ $ $ $ $ $ $ net earnings of acquisition-related... $ $ $ $ $ $ $ See accompanying notes to the summary preliminary financial data. (1) sales from existing businesses (core growth) refers to sales from operations calculated according to but (1) sales impact from acquired businesses, (2) the impact of currency translation and (3) sales impact from the Separation. References to sales attributable to acquisitions or acquired businesses refer to sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to certain divested businesses or product lines not considered discontinued operations prior to the first anniversary of the divestiture. Sales impact from the Separation refer to sales to Danaher made under agreements entered into, or terminated, in connection with the Separation. The portion of sales attributable to the impact of currency translation is calculated as the difference between (a) the period-to-period change in sales ( sales from acquired businesses or Separation) and (b) the period-toperiod change in sales ( sales from acquired businesses of Separation) after applying current period foreign exchange rates to the prior year period. See attached reconciliation of non- sales from existing businesses (core growth) to total sales growth. (2) Reconciliation of operating profit of acquisition-related by segment is presented separately herein. 1

2 Summary preliminary financial data For the year ended 2014 adjustments adjustment for Sales... $ 6, ,337.2 $ 6,337.2 Gross profit... $ 3, ,049.2 $ 3,049.2 Operating profit... $ 1,245.3 (40.7) c 1, d $ 1,294.8 Earnings before income taxes... $ 1,279.2 (164.6) a, c 1, d $ 1,204.8 Net earnings... $ (102.9) a, b, c b, d $ See accompanying notes to the summary preliminary financial data. 2

3 Summary preliminary financial data For the three months ended April 3, adjustments adjustment for Sales... $ 1, ,513.5 $ 1,513.5 Gross profit... $ $ Operating profit... $ (6.8) c d $ Earnings before income taxes $ (29.3) a, c d $ Net earnings... $ (18.4) a, b, c b, d $ See accompanying notes to the summary preliminary financial data. 3

4 Summary preliminary financial data For the three months ended July 3, adjustments adjustment for Sales... $ 1, ,564.9 $ 1,564.9 Gross profit... $ $ Operating profit... $ (12.6) c d $ Earnings before income taxes. $ (35.1) a, c d $ Net earnings... $ (21.9) a, b, c b, d $ See accompanying notes to the summary preliminary financial data. 4

5 Summary preliminary financial data For the three months ended October 2, adjustments adjustment for Sales... $ 1, ,524.6 $ 1,524.6 Gross profit... $ $ Operating profit... $ (8.8) c d $ Earnings before income taxes $ (31.3) a, c d $ Net earnings... $ (19.6) a, b, c b, d $ See accompanying notes to the summary preliminary financial data. 5

6 Summary preliminary financial data For the three months ended adjustments adjustment for Sales... $ 1, ,575.8 $ 1,575.8 Gross profit... $ $ Operating profit... $ (10.6) c d $ Earnings before income taxes $ (33.1) a, c d $ Net earnings... $ (20.6) a, b, c b, d $ See accompanying notes to the summary preliminary financial data. 6

7 Summary preliminary financial data For the year ended Adjustments adjustment for Sales... $ 6, ,178.8 $ 6,178.8 Gross profit... $ 3, ,000.0 $ 3,000.0 Operating profit... $ 1,269.7 (38.8) c 1, d $ 1,319.7 Earnings before income taxes $ 1,269.7 (128.8) a, c 1, d $ 1,229.7 Net earnings... $ (80.5) a, b, c b, d $ See accompanying notes to the summary preliminary financial data. 7

8 Summary preliminary financial data For the three months ended April 1, 2016 Adjustments adjustment for Sales... $ 1, ,474.7 $ 1,474.7 Gross profit... $ $ Operating profit... $ d $ Earnings before income taxes $ (22.5) a d $ Net earnings... $ (14.1) a, b b, d $ See accompanying notes to the summary preliminary financial data. 8

9 Reconciliation of non- sales from existing businesses (core growth) to total sales growth Three Months Ended April 3, July 3, October 2, April 1, Professional Instrumentation Existing businesses 3.0% 5.5% 1.5% 0.5% (7.0%) 0.0% (5.5%) Acquisitions 2.5% 0.5% 0.0% 0.0% 0.0% 0.0% 0.5% Currency exchange rates (0.5%) (5.0%) (5.0%) (5.5%) (4.0%) (4.5%) (1.5%) Total 5.0% 1.0% (3.5%) (5.0%) (11.0%) (4.5%) (6.5%) Industrial Technologies Existing businesses 5.5% 8.5% 4.0% 5.0% 2.0% 5.0% 2.5% Acquisitions 3.0% 0.0% 1.0% 0.0% (0.5%) 0.0% 0.0% Currency exchange rates (1.0%) (5.5%) (6.0%) (5.5%) (4.0%) (5.0%) (1.0%) Total 7.5% 3.0% (1.0%) (0.5%) (2.5%) 0.0% 1.5% Fortive Corporation Existing businesses 4.0% 7.5% 2.5% 3.0% (2.5%) 2.5% (1.5%) Acquisitions 3.0% 0.0% 0.5% (0.5%) 0.0% 0.0% 0.5% Currency exchange rates (0.5%) (5.5%) (5.5%) (5.0%) (4.0%) (5.0%) (1.5%) Total 6.5% 2.0% (2.5%) (2.5%) (6.5%) (2.5%) (2.5%) See accompanying notes to the summary preliminary financial data. Note: sales from existing businesses (core growth) refers to sales from operations calculated according to but (1) sales impact from acquired businesses, (2) the impact of currency translation and (3) sales impact from the Separation. References to sales attributable to acquisitions or acquired businesses refer to sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to certain divested businesses or product lines not considered discontinued operations prior to the first anniversary of the divestiture. Sales impact from the Separation refer to sales to Danaher made under agreements entered into, or terminated, in connection with the Separation. The portion of sales attributable to the impact of currency translation is calculated as the difference between (a) the period-to-period change in sales ( sales from acquired businesses or Separation) and (b) the period-to-period change in sales ( sales from acquired businesses or Separation) after applying current period foreign exchange rates to the prior year period. 9

10 Reconciliation of operating profit to non- operating profit of acquisition-related Three Months Ended April 3, July 3, October 2, April 1, Professional Instrumentation operating profit $ $ $ $ $ $ $ Corporate and stock-based compensation expenses (c) (10.9) (1.5) (3.5) (2.1) (2.1) (9.2) - operating profit of acquisition-related $ $ $ $ $ $ $ Industrial Technologies operating profit $ $ $ $ $ $ $ Corporate and stock-based compensation expenses (c) (11.7) (1.8) (3.7) (2.4) (2.3) (10.2) - operating profit of acquisition-related $ $ $ $ $ $ $ Other operating profit $ (43.3) $ (10.9) $ (10.4) $ (10.5) $ (10.5) $ (42.3) $ (13.7) Corporate and stock-based compensation expenses (c) (18.1) (3.5) (5.4) (4.3) (6.2) (19.4) - operating profit of acquisition-related $ (61.4) $ (14.4) $ (15.8) $ (14.8) $ (16.7) $ (61.7) $ (13.7) Total Fortive operating profit $ 1,245.3 $ $ $ $ $ 1,269.7 $ Corporate and stock-based compensation expenses (c) (40.7) (6.8) (12.6) (8.8) (10.6) (38.8) - operating profit of acquisition-related $ 1,204.6 $ $ $ $ $ 1,230.9 $ See accompanying notesto the summary preliminary financial data. 10

11 Notes to the summary preliminary financial data a) Reflects estimated annual interest expense of $90.0 million ($22.5 million estimated quarterly interest expense) related to the long-term borrowings incurred in connection with the separation reflecting an estimated average borrowing cost of approximately 2.8% per annum. b) Reflects the tax effect of adjustments using the statutory tax rate of 37.5% for each period presented April 3, July 3, October 2, April 1, 2016 Tax adjustment to: adjustments... $ 61.8 $ 11.0 $ 13.1 $ 11.7 $ 12.4 $ 48.2 $ 8.4 adjustment for of acquisition-related... $ (33.8) $ (8.4) $ (8.4) $ (8.2) $ (8.3) $ (33.3) $ (8.4) c) Reflects adjustments to increase selling, general and administrative expenses ( SG&A ) up to the expected level of costs to be incurred by Fortive as a stand-alone, publicly-traded company after the separation, this also includes incremental stock-based compensation expenses. In addition, for the full year 2014 only, reflects the reversal of the $34 million on pre-tax gain on sale of product line. For more information related to the gain on sale of product line, refer to Note 4 of the Danaher NewCo audited annual combined financial statements included in the Information Statement furnished with Fortive s Current Report on Form 8-K filed on June 15, April 3, July 3, October 2, April 1, 2016 SG&A... $ (15.0) $ (4.2) $ (4.6) $ (2.3) $ (6.5) $ (17.6) $ Stock-based compensation expense... (25.7) (2.6) (8.0) (6.5) (4.1) (21.2) Total adjustment to operating profit... (40.7) (6.8) (12.6) (8.8) (10.6) (38.8) Non-operating income: Gain on sale of product line... (33.9) Total adjustment to earnings before income taxes... $ (74.6) $ (6.8) $ (12.6) $ (8.8) $ (10.6) $ (38.8) $ d) Reflects an adjustment to increase the corresponding item by the amount of acquisition-related asset expense recognized in each period presented April 3, July 3, October 2, April 1, 2016 Acquisition-related... $ 90.2 $ 22.3 $ 22.3 $ 21.9 $ 22.3 $ 88.8 $