•Q3 total and core revenue growth of 12%, reflects high-quality portfolio and strength of execution

•Delivered 26% GAAP, 20% adjusted earnings per share growth and strong free cash flow in Q3, demonstrating robust compounding model

•Narrows and raises full-year 2022 GAAP EPS range to $2.05-$2.07, Up 24-25%; Adjusted EPS now $3.10-$3.13, Up 13-14%

•Continued outstanding financial performance in 2022 despite foreign exchange and supply chain headwinds

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-related items;

•Excluding on a pretax basis Russia exit and wind down costs;

•Excluding on a pretax basis the effect of gains and losses from our equity 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 on a pretax basis the gain on litigation resolution;

•Excluding on a pretax basis the gain on sale of business;

•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;

•With respect to the adjusted diluted net earnings per share, included the impact of the assumed conversion of our Mandatory Convertible Preferred Stock (“MCPS”) at the beginning of the period; and

•Including the actual cash interest expense on our 0.875% Convertible Senior Notes due 2022 (“Convertible Notes”) that was not included under the if-converted methodology mandated in 2022

Statements of Earnings. We adjust for the non-recurring Russia exit and wind down costs because we believe that this adjustment facilitates comparison of our performance with prior and future periods and provides our investors with additional insight into our operational performance.

Adjusted Net Earnings From Continuing Operations

			Three Months Ended												Nine Months Ended
($ in millions)			September 30, 2022						October 1, 2021						September 30, 2022						October 1, 2021
Net Earnings Attributable to Common Stockholders from Continuing Operations (GAAP) (a)			$	189.9								$	152.6								$	528.0								$	411.8
Dividends on the mandatory convertible preferred stock to apply if-converted method (a)			—									—									—									34.5
Net Earnings from Continuing Operations (GAAP)			$	189.9								$	152.6								$	528.0								$	446.3
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)			189.9									152.6									529.8									446.3
Pretax amortization of acquisition-related intangible assets			95.3									80.4									287.4									235.4
Pretax acquisition-related items (d)			7.0									14.5									23.4									30.6
Pretax losses from equity investments (e)			9.5									1.1									15.2									7.7
Pretax Russia exit and wind down costs			1.1									—									17.3									—
Pretax gain on sale of business			(2.3)									—									(2.3)									—
Pretax interest expense on Convertible Notes to reverse if-converted method (b)			—									—									(2.1)									—
Pretax loss on debt extinguishment, net of gain on Vontier common stock			—									—									—									47.9
Pretax gain on litigation resolution			—									—									—									(26.0)
Pretax non-cash interest expense associated with our 0.875% Convertible Notes			—									7.1									—									21.9
Tax effect of the adjustments reflected above (c)			(16.7)									(15.2)									(48.7)									(55.4)
Adjusted Net Earnings from Continuing Operations (Non-GAAP)			$	283.8								$	240.5								$	820.0								$	708.4
(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 nine month period ended October 1, 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. The gain on the fair value change in Vontier common stock had no tax effect. The tax effect of the adjustments includes all other line items.
(d) Includes pretax Transaction Costs and acquisition-related fair value adjustments to inventory related to significant acquisitions.
(e) Includes pretax losses from equity method investments and, an $8.1 million pretax impairment loss on an equity investment in the three and nine month period ended September 30, 2022.

Adjusted Diluted Net Earnings Per Share from Continuing Operations

			Three Months Ended(a)												Nine Months Ended(a)
			September 30, 2022						October 1, 2021						September 30, 2022						October 1, 2021
Net Earnings Attributable to Common Stockholders from Continuing Operations (GAAP) (b)			$	0.53					$	0.42					$	1.46					$	1.18
Dividends on the mandatory convertible preferred stock to apply if-converted method (b)			—						—						—						0.10
Assumed dilutive impact on the Diluted Net Earnings Per Share Attributable to Common Stockholders if the MCPS Converted Shares had been outstanding (b)			—						—						—						(0.05)
Net Earnings Per Share from Continuing Operations (GAAP)			0.53						0.42						1.46						1.23
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)			0.53						0.42						1.46						1.23
Pretax amortization of acquisition-related intangible assets			0.27						0.22						0.81						0.65
Pretax acquisition-related items (d)			0.02						0.04						0.06						0.09
Pretax losses from equity investments (e)			0.02						—						0.04						0.02
Pretax Russia exit and wind down costs			—						—						0.05						—
Pretax gain on sale of business			(0.01)						—						(0.01)						—
Pretax interest expense on Convertible Notes to reverse if-converted method (c)			—						—						—						—
Pretax loss on debt extinguishment, net of gain on Vontier common stock			—						—						—						0.13
Pretax gain on litigation resolution			—						—						—						(0.07)
Pretax non-cash interest expense associated with our 0.875% Convertible Notes			—						0.02						—						0.06
Tax effect of the adjustments reflected above (f)			(0.04)						(0.04)						(0.13)						(0.15)
Adjusted Diluted Net Earnings Per Share from Continuing Operations (Non-GAAP)			$	0.79					$	0.66					$	2.28					$	1.96
(a) Each of the per share adjustments below was calculated assuming the MCPS Converted Shares had converted at the beginning of the period prior to their conversion on July 1, 2021. The 0.875% convertible notes did not have an impact on the adjusted diluted shares outstanding.
(b) Prior to their conversion on July 1, 2021, the MCPS were anti-dilutive for the nine months ended October 1, 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 nine months ended September 30, 2022 rounds to zero.
(d) Includes pretax acquisition costs, and pretax acquisition-related fair value adjustments to inventory related to significant acquisitions, and other transaction costs.
(e) Includes pretax losses from equity method investments and, an $8.1 million pretax impairment loss on an equity investment in the three and nine month period ended September 30, 2022.
(f) The dividend on the MCPS is not tax deductible and the convertible note interest is calculated on a net of tax basis. The gain on the fair value change in Vontier common stock had no tax effect. The tax effect of the adjustments includes all other line items.
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 September 30, 2022 vs. Comparable 2021 Period						% Change Nine Months Ended September 30, 2022 vs. Comparable 2021 Period
Total Revenue Growth (GAAP)			11.9		%				10.7		%
Core (Non-GAAP)			12.1		%				8.8		%
Acquisitions (Non-GAAP)			3.8		%				4.8		%
Impact of currency translation (Non-GAAP)			(4.0)		%				(2.9)		%

Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations

			Three Months Ending December 31, 2022												Year Ending December 31, 2022
			Low End						High End						Low End						High End
Forecasted Net Earnings Per Share from Continuing Operations (GAAP)			$	0.59					$	0.61					$	2.05					$	2.07
Anticipated pretax amortization of acquisition-related intangible assets			0.26						0.26						1.06						1.06
Anticipated pretax acquisition-related items			0.01						0.01						0.07						0.07
Anticipated pretax losses from equity investments			0.01						0.01						0.04						0.04
Anticipated pretax Russia exit and wind down costs			—						—						0.05						0.05
Anticipated pretax gain on sale of business			—						—						(0.01)						(0.01)
Tax effect of the adjustments reflected above			(0.04)						(0.04)						(0.16)						(0.16)
Forecasted Adjusted Diluted Net Earnings Per Share from Continuing Operations			$	0.82					$	0.85					$	3.10					$	3.13
Anticipated pretax Russia exit and wind down costs and Anticipated pretax gain on sale of business round to zero in the three month period 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.