Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Deutsche Bank 34th Annual Healthcare Conference (May 2009)
25 slides from Agilent Technologies's conference presentation, May 19, 2009
Slide 1: Agilent Technologies
Agilent Technologies Deutsche Bank 34th Annual Healthcare Conference May 19, 2009 The InterContinental Boston Boston, MA
Slide 2: Nick Roelofs, Life Science Solutions
Agilent Technologies Deutsche Bank 34th Annual Healthcare Conference Nick Roelofs Vice President and General Manager Life Science Solutions
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements (including, without limitation, statements regarding the enhancement of shareholder value, restructuring activities, and information and future guidance on our goals, priorities, orders, revenues, demand, growth opportunitie
Slide 4: World’s Premier Measurement Company
World’s Premier Measurement Company Q209 – Controlling Costs; Restructuring Initiatives on Track • Orders of $1.0 billion, down 33% from last year; Revenues of $1.1 billion, down 25% from last year • Segment revenue growth y/y: BAM -6%, EM -33%, and SBT -63% • Continued aggressive actions to reduce
Slide 5: Organizational Structure
Organizational Structure Solutions that address critical customer challenges Executive Leadership Electronic Measurement Bio-Analytical Measurement Group Business Units $3.6B $1.2B $1.0B Ron Nersesian Mike McMullen Nick Roelofs Chemical Analysis Life Sciences Business Segments Electronic Measurement
Slide 6: Agilent’s Q209 Business Mix
Agilent’s Q209 Business Mix End Market Global Reach Life Sciences 22% Europe Asia Chemical 25% Analysis Pacific 24% 39% General Purpose 34% Americas 36% Communications 20% graphs represent revenue distribution Page 6
Slide 7: Focus for FY09: Deliver in a Difficult Environment
Focus for FY09: Deliver in a Difficult Environment Operating model discipline and resource allocation drives results • Agilent Operating Model – rapid response to economic headwinds • Bio-Analytical Measurement – positioned for growth • Electronic Measurement – Focus on R&D, restructure to achieve 1
Slide 8: Summary of Agilent Restructuring & Other Cost Saving Actions
Summary of Agilent Restructuring & Other Cost Saving Actions Q3 FY2008+ Annual Full Benefit Announced Restructuring Cost People Savings Timing Est. Temps elimination, targeted restructuring $65M $55M 500 Q4 2009 (ann. 12/17/08) Exited inspection business, restructure Global $150M $100M 600 Q1 2010 I
Slide 9: 2009 Results Forecast
2009 Results Forecast Despite uncertain market conditions model drives superior results ro rd ow ee th nt th th G a th Fl Fr S AP w le w st Bo w gi g w ro ro gi sh ng ar n EP -GA ro M rati Te i & G lA G n Ca rati G IC M ta m on pe pe EM O A To Se O B N R O mid-point Analyst -15% 0% -25% -10% 12.8% $
Slide 10: Electronic Measurement and Semi & Board Test
Electronic Measurement and Semi & Board Test Q209 Strengths and Weaknesses General Purpose Market General Purpose (34% of Agilent Q209 Revenue) +’s SEMI & •U.S. Aerospace & Defense spending stabilizing BOARD TEST SEGMENT COMPUTER & SEMICONDUCTORS •Education market 3% 2% -’s •Customer capital equipme
Slide 11: Life Sciences
Life Sciences Q209 Strengths and Weaknesses +’s •Academic & Government revenue up 10% y/y Life Sciences (22% of Agilent Q209 Revenue) •LC/MS and Microarrays sales up 30%+ y/y •China ACADEMIC & GOVERNMENT •Announced 1290 Infinity Ultra-High Perf. LC 6% -’s 16% •Pharma and Biotech revenue weak •LC & G
Slide 12: Life Sciences Overview
Life Sciences Overview FY08 revenue $1 billion, up 23% year-over-year Pharma/Biotech Life Sciences Market: $18B (For Profit) Market Drivers • Academic and government investment • Fundamentally linked to human health • Life Science applications – “omics” FY08 Revenue = $0.8B • Growth in generics and
Slide 13: Life Sciences: Products and solutions released in FY09
Life Sciences Products and solutions released in FY09 1290 Infinity UHPLC System Offering the industry largest power range (1200bar, 5ml/min) for highest speed and resolution and 2-80x increased sensitivity. Also comes as method development solution with industry highest versatility and HT System pr
Slide 14: Life Sciences: Products and solutions released in FY09
Life Sciences Products and solutions released in FY09 SureSelect™ Target Enrichment System SureSelect™ The first fully customizable liquid genome partitioning / enrichment reagent Target Enrichment System system. This system enhances and accelerates nucleic acid sequencing experiment when used in fr
Slide 15: Mike McMullen, Chemical Analysis Solutions
Agilent Technologies Deutsche Bank 34th Annual Healthcare Conference Mike McMullen Vice President and General Manager Chemical Analysis Solutions
Slide 16: Chemical Analysis
Chemical Analysis Q209 Strengths and Weaknesses +’s •Food Safety revenue up 30% y/y Chemical Analysis (24% of Agilent Q209 Revenue) •China – Continued “Double-Digit” growth FORENSICS • New Product Launches FOOD 2% 7% 7% -’s 8% •Petrochemical revenue down 14% y/y •Environmental revenue down 12% y/y E
Slide 17: Chemical Analysis Overview – taking share in difficult market
Chemical Analysis Overview – taking share in difficult market FY08 revenue $1.2 billion, up 12% year-over-year Petrochemical $0.4 B & Chemical Chemical Analysis Market: $9B 7% of Agilent Testing revenue Market Drivers Environmental $0.4 B • Food Safety Testing Testing 6% of Agilent • Lab Productivit
Slide 18: Chemical Analysis: Products and solutions released in FY09
Chemical Analysis Products and solutions released in FY09 7000A Triple Quadrupole GC/MS • Unmatched sensitivity and selectivity for complex Agilent 7693 samples with Agilent’s traditional reliability & Mass Hunter software Agilent 7693 - Automation & Sample Preparation Capabilities • Sample handling
Slide 19: Chemical Analysis: Products and solutions released in FY09
Chemical Analysis Products and solutions released in FY09 Sample Preparation – Expansion of SampliQ SPE Portfolio • New sample prep solutions available in a wide variety of formats for enhanced productivity in food safety & other applications GC Columns – Expansion of Ultra Inert • Unmatched Inertne
Slide 20: Raising the Bar for a “Cleaner” Olympics
Raising the Bar for a “Cleaner” Olympics • Agilent 7000A Triple Quad GC/MS will change the laboratory and the playing field at the Vancouver 2010 Winter Games 4ß-OH-Stanozolol • Montreal’s Institut National de la Recherche Scientifique (INRS) – Canada’s only WADA-accredited lab, will operate a state
Slide 21: Commitment: Agilent Operating Model
Commitment Deliver performance consistent with Agilent’s Operating Model • Agilent Operating Model • 20% ROIC on average across the cycle • 30-40% operating profit incremental/decremental • Operating cash flow positive at every point in the cycle • Take additional action – where automatic flexibilit
Slide 22: Agilent Technologies
Agilent Technologies Deutsche Bank 34th Annual Healthcare Conference May 19, 2009 The InterContinental Boston Boston, MA
Slide 23: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (IN MILLIONS) PRELIMINARY Agilent Numerator: Q2'09 Q2'08 Adjusted income from operations $ 67 $ 215 Less: Taxes and Other (income)/expense 10 45 (a) Agilent return 57 170 Agilent return annualized $ 228 $ 680 Denominator: Agilent assets (b) $ 3,734 $
Slide 24: Reconciliation of Net Cash
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF NET CASH (IN MILLIONS) PRELIMINARY Q2'09 Q2'08 YoY% Cash and cash equivalents $ 1,400 $ 1,710 -18.1% Restricted cash and cash equivalents 1,572 1,584 -0.8% Investments - debt securities 65 132 -50.8% Long-term debt (1,515) (1,752) -13.5% Senior notes (600
Slide 25: Reconciliation from GAAP to Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP (INCLUDES FAS 123R IN GAAP & NON-GAAP) THREE MONTHS ENDED April 30, 2009 (Unaudited) Non-GAAP Adjustments Acceleration of Share-Based Restructuring Compensation and Other Asset Expense Related to Intangible Adjustment for (In millions, e
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