Transforming To Accelerate Organic Growth
Reducing
Complexity
by optimizing corporate structure, simplifying operating model and transforming supply chain...
Investing
in Core Growth
to advance innovation, electrification, market leadership and a more responsive supply chain...
Enhancing
Shareholder Return
by growing MSD organic revenue* (2-3X market), 35%+ adjusted gross margin* and ~100% free cash flow* conversion...
* Non-GAAP financial measure. Adjusted Gross Margin excludes certain pre-tax gains and charges. Organic revenue is defined as the difference between total current and prior year sales less the impact of companies acquired and divested in the past twelve months and any foreign currency impacts. Organic revenue growth is organic revenue divided by prior year sales. Free Cash Flow is defined as net cash flow from operating activities less capital and software expenditures. The Company considers the use of the Non-GAAP financial measures above relevant to aid analysis and understanding of the Company’s results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods. Refer to Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of the attached Form 10-K for Non-GAAP definitions and reconciliations.
