Investor Overview - Q3 2023
UNDERLYING FREE CASH FLOW REMAINS STRONG
Adjusted Free Cash Flow
Conversion Ratio(a)
100%+
Target Range:
90%-95%
89%
Discrete
Headwinds
2023 Free Cash Flow (b)
Considerations
Underlying drivers
remain the same:
Two discrete
headwinds totaling
~$700 million:
ā USD EPS growth
Improve cash
conversion cycle
1. Elevated
transition tax
payment
2. M&A transaction
payments
ā Prudent capital
spend
Last 3 Years 2022
Average
2023
Outlook
Excluding discrete headwinds, implied 2023 free cash flow conversion ratio(a) is within target range
Note: 2023 free cash flow (non-GAAP) outlook does not include any potential payments related to our ongoing tax litigation with the U.S. Internal Revenue Service
(a) Non-GAAP; Adjusted Free Cash Flow Conversion Ratio = Free cash flow adjusted for pension contributions (non-GAAP) / GAAP net income adjusted for noncash items impacting comparability
(b) Non-GAAP
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