•Q1 revenue growth of 9%, 5% core, reflecting continued strong customer demand

•Performance exceeded expectations despite continued COVID and supply chain challenges

•Demand for software-enabled workflow solutions yielded mid-teens software growth

•61% GAAP diluted earnings per share, 11% adjusted diluted earnings per share, 41% cash flow from operations and 36% free cash flow growth

•2021 acquisitions accretive to first quarter and full year 2022 growth and earnings

•Raises low end of 2022 outlook: GAAP EPS of $2.07-$2.16, Up 25%-31%, and Adjusted EPS of $3.04-$3.13, Up 11-14%

(unaudited)

($ and shares in millions, except per share amounts)			Three Months Ended
			April 1, 2022						April 2, 2021
Sales			$	1,376.5					$	1,259.2
Cost of sales			(584.5)						(547.3)
Gross profit			792.0						711.9
Operating costs:
Selling, general, and administrative expenses			(480.6)						(428.1)
Research and development expenses			(99.1)						(86.2)
Operating profit			212.3						197.6
Non-operating income (expense), net:
Interest expense, net			(18.8)						(27.7)
Loss on extinguishment of debt			—						(104.9)
Gain on investment in Vontier Corporation			—						57.0
Other non-operating expense, net			(2.7)						(3.3)
Earnings from continuing operations before income taxes			190.8						118.7
Income taxes			(25.7)						(7.0)
Net earnings from continuing operations			165.1						111.7
Earnings (loss) from discontinued operations, net of income taxes			—						(1.5)
Net earnings			165.1						110.2
Mandatory convertible preferred dividends			—						(17.3)
Net earnings attributable to common stockholders			$	165.1					$	92.9
Net earnings per share from continuing operations:
Basic			$	0.46					$	0.28
Diluted			$	0.45					$	0.28
Net earnings (loss) per share from discontinued operations:
Basic			$	—					$	—
Diluted			$	—					$	—
Net earnings per share:
Basic			$	0.46					$	0.27
Diluted			$	0.45					$	0.27
Average common stock and common equivalent shares outstanding:
Basic			359.3						338.6
Diluted			368.4						341.7
The sum of net earnings per share amounts may not add due to rounding.

This information is presented for reference only. A complete copy of Fortive’s Form 10-Q financial statements is available on the Company’s website (www.fortive.com).

•Excluding on a pretax basis amortization of acquisition-related intangible assets;

•Excluding on a pretax basis acquisition and other transaction costs deemed significant (“Transaction Costs”);

•Excluding on a pretax basis the effect of inventory fair value adjustments related to significant acquisitions;

•Excluding on a pretax basis the effect of losses from our equity method investments;

•Excluding the pretax loss on debt extinguishment, net of non-recurring gain on our investment in Vontier common stock;

•Excluding on a pretax basis the non-cash interest expense associated with our 0.875% convertible senior notes;

•Excluding the tax effect (to the extent tax deductible) of the adjustments noted above. The tax effect of such adjustments was calculated by applying our overall estimated effective tax rate to the pretax amount of each adjustment (unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment). We expect to apply our overall estimated effective tax rate to each adjustment going forward;

•Including the impact of the assumed conversion of our Mandatory Convertible Preferred Stock at the beginning of the period; and

•Including the actual cash interest expense on our 0.875% Senior Convertible Notes due 2022 (“Convertible Notes”) that was not included under the if-converted methodology mandated in 2022 and, with respect to the adjusted diluted net earnings per share, excluding the outstanding shares of common stock imputed under the in-converted methodology for the Convertible Notes that, in fact, were repaid and settled without issuance of any shares of common stock

Adjusted Net Earnings From Continuing Operations

			Three Months Ended
($ in millions)			April 1, 2022						April 2, 2021
Net Earnings Attributable to Common Stockholders from Continuing Operations (GAAP) (a)			$	165.1								$	94.4
Dividends on the mandatory convertible preferred stock to apply if-converted method (a)			—									17.3
Net Earnings from Continuing Operations (GAAP)			$	165.1								$	111.7
Interest on the Convertible Notes to apply if-converted method (b)			2.1									—
Tax effect of the Convertible Notes to apply if-converted method (c)			(0.3)									—
Diluted Net Earnings from Continuing Operations (GAAP)			166.9									111.7
Pretax amortization of acquisition-related intangible assets			96.3									77.5
Pretax acquisition and other transaction costs			7.7									5.8
Pretax acquisition-related fair value adjustments to inventory related to significant acquisitions			0.4									5.5
Pretax losses from equity method investments			2.6									2.6
Pretax loss on debt extinguishment, net of gain on Vontier common stock			—									47.9
Pretax non-cash interest expense associated with our 0.875% Convertible Notes			—									7.7
Pretax interest on Convertible Notes to reverse if-converted method (b)			(2.1)									—
Tax effect of the adjustments reflected above (c)			(16.7)									(29.6)
Adjusted Net Earnings from Continuing Operations (Non-GAAP)			$	255.1								$	229.1
(a) On July 1, 2021, all outstanding shares of our MCPS converted at a rate of 14.0978 common shares per share of preferred stock into an aggregate of approximately 19.4 million shares (net of fractional shares). The MCPS were anti-dilutive for the three months ended April 2, 2021 and as such GAAP net earnings per share was calculated using net earnings from continuing operations attributable to common stockholders.
(b) Beginning with our adoption of ASU 2020-06 on January 1, 2022 we assumed share settlement of our outstanding Convertible Notes under the if-converted method when calculating GAAP diluted net earnings per share. Since we settled the Convertible Notes in cash on February 15, 2022 and no common share conversion occurred, we have reversed the impacts of applying the if-converted method and included the actual cash interest expense in calculating the adjusted net earnings per share.
(c) The dividend on the MCPS is not tax deductible and the convertible note interest is calculated on a net of tax basis and therefore the tax effect of the adjustments includes only the amortization of acquisition-related intangible assets, acquisition and other transaction costs, acquisition-related fair value adjustments to inventory, losses from equity method investments, the loss on extinguishment of debt, the non-cash interest expense associated with the 0.875% convertible notes, and the interest expense on the Convertible Notes. The gain on the fair value change in Vontier common stock had no tax effect.

Adjusted Diluted Net Earnings Per Share from Continuing Operations

			Three Months Ended(a)
			April 1, 2022						April 2, 2021
Net Earnings Attributable to Common Stockholders from Continuing Operations (GAAP) (b)			$	0.45					$	0.28
Dividends on the mandatory convertible preferred stock to apply if-converted method (b)			—						0.05
Assumed dilutive impact on the Diluted Net Earnings Per Share Attributable to Common Stockholders if the MCPS Converted Shares had been outstanding (b)			—						(0.02)
Net Earnings Per Share from Continuing Operations (GAAP)			0.45						0.31
Interest on the Convertible Notes to apply if-converted method (c)			—						—
Tax effect of the Convertible Notes to apply if-converted method (c)			—						—
Diluted Net Earnings Per Share from Continuing Operations (GAAP)			0.45						0.31
Pretax amortization of acquisition-related intangible assets			0.27						0.21
Pretax acquisition and other transaction costs			0.02						0.02
Pretax acquisition-related fair value adjustments to inventory related to significant acquisitions			—						0.02
Pretax losses from equity method investments			0.01						0.01
Pretax loss on debt extinguishment, net of gain on Vontier common stock			—						0.13
Pretax non-cash interest expense associated with our 0.875% Convertible Notes			—						0.02
Pretax interest on Convertible Notes to reverse if-converted method (c)			—						—
Tax effect of the adjustments reflected above (d)			(0.05)						(0.08)
Adjusted Diluted Net Earnings Per Share from Continuing Operations (Non-GAAP)			$	0.70					$	0.63
(a) The April 2, 2021 per share adjustments below were calculated assuming the MCPS Converted Shares had converted at the beginning of the period prior to their conversion on July 1, 2021. The April 1, 2022 per share adjustments were calculated assuming the Convertible Notes converted during the period.
(b) Prior to their conversion on July 1, 2021, the MCPS were anti-dilutive for the three months ended April 2, 2021, and as such GAAP net earnings per share was calculated using net earnings from continuing operations attributable to common stockholders.
(c) Beginning with our adoption of ASU 2020-06 on January 1, 2022 we assumed share settlement of our outstanding Convertible Notes under the if-converted method when calculating GAAP diluted net earnings per share. Since we settled the Convertible Notes in cash on February 15, 2022 and no common share conversion occurred, we have reversed the impacts of applying the if-converted method and included the actual cash interest expense in calculating the adjusted net earnings per share. The impact of the after tax adjustment to GAAP diluted net earnings per share for the three months ended April 2, 2022 rounds to zero.
(d) The dividend on the MCPS is not tax deductible and the convertible note interest is calculated on a net of tax basis and therefore the tax effect of the adjustments includes only the amortization of acquisition-related intangible assets, acquisition and other transaction costs, acquisition-related fair value adjustments to inventory, losses from equity method investments, the loss on extinguishment of debt, the non-cash interest expense associated with the 0.875% Convertible Notes, and the interest expense on Convertible Notes. The gain on the fair value change in Vontier common stock had no tax effect.
The sum of the components of adjusted diluted net earnings per share from continuing operations may not equal due to rounding.

Core Revenue Growth

			% Change Three Months Ended April 1, 2022 vs. Comparable 2021 Period
Total Revenue Growth (GAAP)			9.3		%
Core (Non-GAAP)			5.3		%
Acquisitions (Non-GAAP)			5.5		%
Impact of currency translation (Non-GAAP)			(1.5)		%

Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations

			Three Months Ending July 1, 2022												Twelve Months Ending December 31, 2022
			Low End						High End						Low End						High End
Forecasted Net Earnings Per Share from Continuing Operations (GAAP)			$	0.44					$	0.47					$	2.07					$	2.16
Forecasted interest on the Convertible Notes to apply if-converted method (a)			—						—						—						—
Forecasted tax effect of the Convertible Notes to apply if-converted method (a)			—						—						—						—
Forecasted Diluted Net Earnings Per Share from Continuing Operations			0.44						0.47						2.07						2.16
Anticipated pretax amortization of acquisition-related intangible assets			0.27						0.27						1.06						1.06
Anticipated pretax significant acquisition and other transaction costs			0.03						0.03						0.07						0.07
Anticipated pretax losses from equity method investments			0.01						0.01						0.01						0.01
Anticipated pretax interest expense on Convertible Notes to reverse if-converted method (a)			—						—						—						—
Tax effect of the adjustments reflected above			(0.05)						(0.05)						(0.18)						(0.18)
Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations			$	0.70					$	0.73					$	3.04					$	3.13
(a) The impact of these components round to zero for the three months ending July 1, 2022 and twelve months ending December 31, 2022.
The sum of the components of forecasted adjusted diluted net earnings per share from continuing operations may not equal due to rounding.