Vontier (VNT) Morgan Stanley‘s 12th Annual Laguna Conference 2024 summary

Business transformation and portfolio evolution

• Significant portfolio transformation achieved through acquisitions, organic growth, and divestitures, creating a more focused and synergistic set of assets.

• Three core verticals targeted: convenience retail, fleet management, and vehicle repair, each benefiting from secular trends like energy transition, infrastructure complexity, and labor challenges.

• Connected mobility strategy integrates smart hardware, application software, and cloud solutions, increasing recurring revenues and digital transformation capabilities.

• New reporting structure clarified operations, with Mobility Technologies segment leading in digitalization and automation for customers.

• Investments in R&D and leadership have positioned the business for long-term growth and network effects across verticals.

Mobility Technologies and digital solutions

• Market leader in convenience retail and fleet management, offering point-of-sale, payment, and enterprise productivity solutions.

• Recent wins include a nationwide rollout of payment and site management solutions for Costco in Canada and strong presence in car wash and EV charging management.

• Fleet solutions support decarbonization with multi-energy management, including CNG, RNG, hydrogen, and telematics.

• Invenco business restructured and rebranded, now showing strong growth with new product launches and software consolidation.

• Payment security and automation are key differentiators, with regulatory drivers advancing adoption globally.

Alternative energy and electrification

• Alternative energy business has doubled in recent years, driven by fleet decarbonization needs and complex mixed-fleet management.

• Leader in compressed and renewable natural gas, hydrogen, and electrification solutions for fleet operators.

• EVolve network software manages up to 100,000 charging plugs, ranking second globally, with SaaS recurring revenue doubling monthly.

• Portfolio benefits from varying electrification rates across geographies, with turnkey high-speed charging solutions and strong U.S. pipeline.