2023 INVESTOR DAY slide image

2023 INVESTOR DAY

Cash Flow, Free Cash Flow and Free Cash Flow to Net Earnings Conversion Ratio ($ in millions) Total Cash Flows: Total cash provided by operating activities (GAAP) Total cash used in investing activities (GAAP) Total cash used in financing activities (GAAP) Free Cash Flow: Total cash provided by operating activities (GAAP) Six-Month Period Ended Year Ended December 31, June 30, 2023 July 1, 2022 2022 December 31, 2021 December 31, 2020 457 $ 276 $ 870 896 $ 1.001 (19) $ (34) $ (89) (97) $ (157) (438) $ (242) (781) $ (799) $ (844) 457 276 $ 870 $ 896 $ 1.001 Less: payments for additions to property, plant & equipment (capital expenditures) (GAAP) Plus: proceeds from sales of property, plant & equipment (capital disposals) (GAAP) Free cash flow (non-GAAP) (21) 2 (20) (34) (54) (36) 5 438 $ 256 S 836 $ 842 S 965 Operating Cash Flow to Net Earnings Ratio (GAAP): Total cash provided by operating activities (GAAP) Net earnings (GAAP) Operating cash flow to net earnings conversion ratio 457 $ 276 $ 870 $ 896 S 1.001 $ 434 $ 411 S 845 $ 861 S 724 1.05 0.67 1.03 1.04 1.38 Free Cash Flow to Net Earnings Ratio (non-GAAP): Free cash flow from above (non-GAAP) Net earnings (GAAP) Free cash flow to net earnings conversion ratio (non-GAAP) 438 $ 256 S 836 842 965 434 1.01 411 S 845 861 $ 724 0.62 0.99 0.98 1.33 The Company defines free cash flow as operating cash flows from continuing operations, less payments for additions to property, plant and equipment ("capital expenditures") plus the proceeds from sales of plant, property and equipment ("capital disposals"). Veralto 2023 INVESTOR DAY | 78
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