Ge Healthcare Technologies Inc. · NASDAQ:GEHC
Ge Healthcare Technologies — Q3 2024 Earnings Presentation
33 slides from Ge Healthcare Technologies's earnings presentation, Oct 30, 2024
Slide 1: 3Q 2024 Earnings Presentation
3Q 2024 Earnings Presentation October 30, 2024 © 2024 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 2: Forward-looking statements and additional information
Forward-looking statements and additional information This presentation contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate
Slide 3: 3Q 2024 Performance
3Q 2024 Performance • Mid-single-digit sales and orders growth excluding China, driven by ongoing strength in the U.S. and PDx performance • Strong backlog growth primarily driven by services • Robust margin expansion and strong EPS growth • Updating full-year 2024 guidance: ◦ Trending toward the lo
Slide 4: 3Q 2024 Consolidated performance summary
3Q 2024 Consolidated performance summary Revenues Organic orders Adjusted EBIT* and Adjusted EPS* Free cash flow* growth** Adjusted EBIT margin* $4.9B 1% YoY $795M $1.14 $651M 1% Organic growth*(1) Book-to-Bill** 16.3% Margin 15% YoY $81M YoY 1.04x 90 bps YoY *Non-GAAP financial measure. See appendi
Slide 5: Delivered 3Q and YTD 2024 adjusted margin expansion
Delivered 3Q and YTD 2024 adjusted margin* expansion 3Q 2024 Adjusted margin* expansion +150 bps YoY +90 bps YoY • Partnering with suppliers on material cost and lead times • Realizing cost benefits from investments in design change improvements • Driving parts quality improvement YTD 2024 Adjusted
Slide 6: 3Q 2024 Imaging results
3Q 2024 Imaging results 3Q 2024 3Q 2023 YoY change Revenues $2,229M $2,236M (1)%*(1) Segment EBIT $287M $243M 18% Segment EBIT margin 12.9% 10.9% 200 bps Note: Results recast in line with move of Image Guided Therapies from Imaging to Advanced Visualization Solutions Highlights • Organic revenue gro
Slide 7: 3Q 2024 Advanced Visualization Solutions results
3Q 2024 Advanced Visualization Solutions results 3Q 2024 3Q 2023 YoY change Revenues $1,216M $1,214M —%*(1) Segment EBIT $232M $254M (9)% Segment EBIT margin 19.0% 20.9% (190) bps Note: Results recast in line with move of Image Guided Therapies from Imaging to Advanced Visualization Solutions Highli
Slide 8: 3Q 2024 Patient Care Solutions results
3Q 2024 Patient Care Solutions results 3Q 2024 3Q 2023 YoY change Revenues $779M $764M 2%*(1) Segment EBIT $82M $80M 3% Segment EBIT margin 10.6% 10.5% 10 bps Highlights • Organic revenue growth* driven by backlog execution following 9% growth in the prior year • EBIT margin increased with improved
Slide 9: 3Q 2024 Pharmaceutical Diagnostics results
3Q 2024 Pharmaceutical Diagnostics results 3Q 2024 3Q 2023 YoY change Revenues $625M $589M 7%*(1) Segment EBIT $193M $166M 16% Segment EBIT margin 30.9% 28.2% 270 bps . Highlights • Solid Organic revenue growth* driven by procedure volume, pricing actions, and new product introductions • EBIT margin
Slide 10: 3Q 2024 Cash performance
3Q 2024 Cash performance 3Q 2024 Free cash flow* Cash highlights • Free cash flow* of $651M up $81M YoY $651M • Focused efforts on working capital management: $570M ◦ Improved accounts payable ◦ Strong collections in the U.S. and PDx 3Q 2023 3Q 2024 *Non-GAAP financial measure. See appendix for defi
Slide 11: 2024 Outlook
2024 Outlook Previous 2024E Updated 2024E 1% - 2% Organic Revenue Growth*(1) 1% - 2% trending toward lower end of range Adjusted EBIT Margin* 15.7% - 16.0% 15.8% - 16.0% 60 - 90 bps growth 70 - 90 bps growth 23% - 25% Adjusted ETR* 23% - 25% trending toward lower end of range Adjusted EPS* $4.20 - $
Slide 12: Investing in high-margin innovations enabling recurring revenue
Investing in high-margin innovations enabling recurring revenue Near to mid-term: Flyrcado™ Longer term: new AI and cloud-based solutions • First and only FDA-approved F 18 PET MPI radiotracer for patients with CareIntellect for Oncology known or suspected coronary artery disease A clinical applicat
Slide 13: Summary
Summary • Sales and orders growth reflecting strength in the U.S., and solid PDx revenue performance • Confident in fundamentals of business, supported by our innovation pipeline and strong backlog • Robust margin expansion and strong EPS growth • Raising lower end of margin and EPS guidance, while
Slide 14: Slide 14
Slide 15: Q&A
Q&A © 2024 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 16: Upcoming events
Upcoming events GE HealthCare Investor Day November 21, 2024 Investor Meetings at RSNA December 2-3, 2024 Nasdaq Investor Conference December 10, 2024 © 2024 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 17: Appendix
Appendix © 2024 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 18: Organic Revenue
Organic Revenue* ($ in millions) For the three months ended September 30 For the nine months ended September 30 Unaudited 2024 2023 % change 2024 2023 % change Total revenues $ 4,863 $ 4,822 1% $ 14,353 $ 14,346 —% Less: Acquisitions(1) 16 — 29 — Less: Dispositions(2) — — — — Less: Foreign currency
Slide 19: Segment Organic Revenue
Segment Organic Revenue* ($ in millions) For the three months ended September 30 For the nine months ended September 30 Unaudited 2024 2023 % change 2024 2023 % change Imaging revenues $ 2,229 $ 2,236 —% $ 6,462 $ 6,552 (1)% Less: Acquisitions(1) 16 — 29 — Less: Dispositions(2) — — — — Less: Foreign
Slide 20: Adjusted EBIT
Adjusted EBIT* ($ in millions) For the three months ended September 30 For the nine months ended September 30 Unaudited 2024 2023 % change 2024 2023 % change Net income attributable to GE HealthCare $ 470 $ 375 25 % $ 1,272 $ 1,165 9% Add: Interest and other financial charges – net 130 138 383 411 A
Slide 21: Adjusted Net Income
Adjusted Net Income* ($ in millions) For the three months ended September 30 For the nine months ended September 30 Unaudited 2024 2023 % change 2024 2023 % change Net income attributable to GE HealthCare $ 470 $ 375 25 % $ 1,272 $ 1,165 9% Add: Non-operating benefit (income) costs (102) (94) (306)
Slide 22: Adjusted Earnings Per Share
Adjusted Earnings Per Share* (In dollars, except shares outstanding presented in millions) For the three months ended September 30 For the nine months ended September 30 Unaudited 2024 2023 $ change 2024 2023 $ change Diluted earnings per share – continuing operations $ 1.02 $ 0.83 $ 0.20 $ 2.77 $ 2
Slide 23: Adjusted Tax Expense and Adjusted ETR
Adjusted Tax Expense* and Adjusted ETR* ($ in millions) For the three months ended September 30 For the nine months ended September 30 Unaudited 2024 2023 2024 2023 Benefit (provision) for income taxes $ (168) $ (250) $ (435) $ (550) Add: Tax effect of reconciling items(1) (3) (4) (26) (3) Add: Spin
Slide 24: Free Cash Flow
Free Cash Flow* ($ in millions) For the three months ended September 30 For the nine months ended September 30 Unaudited 2024 2023 % change 2024 2023 % change Cash from (used for) operating activities – continuing operations $ 742 $ 650 14 % $ 1,042 $ 1,051 (1)% Add: Additions to PP&E and internal-u
Slide 25: Non-GAAP P&L Reconciliations - 3Q 2024
Non-GAAP P&L Reconciliations - 3Q 2024 ($ in millions) Acquisition Amortization Non- and (Gain) loss on of Investment Operating Spin-Off and Tax effect of Spin-Off and Non-GAAP GAAP Restructuring disposition- business and acquisition- revaluation benefit separation reconciling other tax Reported cos
Slide 26: Non-GAAP P&L Reconciliations - 3Q 2023
Non-GAAP P&L Reconciliations - 3Q 2023 ($ in millions) Acquisition (Gain) loss Amortization Non- Spin-Off and Income (loss) and of Investment Operating Spin-Off and on business Tax effect of from GAAP Restructuring disposition- separation acquisition- revaluation benefit other tax and asset reconcil
Slide 27: Non-GAAP P&L Reconciliations - YTD 2024
Non-GAAP P&L Reconciliations - YTD 2024 ($ in millions) Acquisition Amortization Non- and (Gain) loss on of Investment Operating Spin-Off and Tax effect of Spin-Off and Non-GAAP GAAP Restructuring disposition- business and acquisition- revaluation benefit separation reconciling other tax Reported co
Slide 28: Non-GAAP P&L Reconciliations - YTD 2023
Non-GAAP P&L Reconciliations - YTD 2023 ($ in millions) Acquisition Amortization Non- Spin-Off and Income (loss) and (Gain) loss on of Investment Operating Spin-Off and Tax effect of from GAAP Restructuring disposition- business and acquisition- revaluation benefit other tax discontinued Non-GAAP se
Slide 29: Acronyms
Acronyms AI Artificial Intelligence AVS Advanced Visualization Solutions bps Basis points CT Computed Tomography EBIT Earnings Before Interest and Taxes EPS Earnings Per Share ETR Effective Tax Rate FCF Free Cash Flow IGS Image-Guided Surgery IGT Image Guided Therapies IT Information Technology MPI
Slide 30: Definitions
Definitions Book-to-Bill Total orders divided by total revenues within a given financial period (e.g., quarter or FY) Free cash flow conversion* Free cash flow* / Adjusted net income* Rate of change period-over-period of contractual commitments with customers to provide specified goods or services f
Slide 31: Product disclaimers
Product disclaimers Product Name Disclaimer 510(k) Pending at FDA. Not available for sale in the United States. Not yet CE marked. Cannot be placed on the SIGNA MAGNUS market or put into service until it has been made to comply with CE marking. Not cleared or approved by any global regulator for com
Slide 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures The non-GAAP financial measures presented in this presentation are supplemental measures of GE HealthCare’s performance and its liquidity that the Company believes will help investors understand its financial condition, cash flows, and operating results, and assess its fu
Slide 33: Non-GAAP Financial Measures in Outlook
Non-GAAP Financial Measures in Outlook GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP fin
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