FINANCIAL STRENGTH & DISCIPLINED CASH DEPLOYMENT
PERFORMANCE
- Strong balance sheet, cash flow generation and strong track record of returning cash to shareowners
- Best in class ROIC; an intellectual capital business
- Experienced leadership team adept at managing through cycles
ABOVE MARKET
GROWTH
Above market revenue growth starts with market share growth in our core platforms. The concept of Information Solutions and Connected Services is a proxy for the new value coming from the Connected Enterprise. And finally, acquisitions deliver a point or more of growth each year on average.
FRAMEWORK FOR CONTINUED SUPERIOR FINANCIAL RETURNS
Our longer term framework for financial performance starts with organic sales growth, which drives earnings conversion (incremental margins). Free cash flow conversion of 100% or more and a strong balance sheet provide significant capacity for strategic capital deployment, including acquisitions and share repurchases. As a result, we expect EPS growth to outpace revenue growth and ROIC to remain over 20%.
30-35% Earnings Conversion at Mid-Single-Digit Organic Growth
UPWARD TREND IN SEGMENT MARGINS
100% or More Free Cash Flow Conversion
HIGH QUALITY EARNINGS, SIGNIFICANT CAPITAL DEPLOYMENT FLEXIBILITY
Solid Balance Sheet
SIGNIFICANT CAPACITY FOR STRATEGIC CAPITAL DEPLOYMENT
EPS Growth > Revenue Growth
SCALE BENEFITS, SHARE REPURCHASES
ROIC >20%
DISCIPLINED CAPITAL DEPLOYMENT
CAPITAL
DEPLOYMENT
Our strong balance sheet provides us with significant flexibility and capacity to deploy capital. Our capital deployment priorities have not changed: Make investments to fund organic growth, drive a point or more per year of growth from strategic acquisitions, and return excess cash to shareowners through dividends and share repurchases.
2008–2017 PERFORMANCE SNAPSHOT
TOTAL SHAREOWNER
RETURN HISTORY
Our above market sales growth, top financial performance and disciplined capital deployment create a total shareowner return that is consistently above the S&P 500.
