Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q2 FY2021 Earnings Presentation
50 slides from Becton, Dickinson And's earnings presentation, May 6, 2021
Slide 1: Creating value by fulfilling our purpose
Creating value by fulfilling our purpose Advancing the World of Health™ May 6, 2021 BD
Slide 2: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements This presentation contains certain estimates and other forwardooking statements (as defined under Federal securities laws) regarding BD's future prospects and performance, including, but not limited to, future revenues, earnings per share, leverage targe
Slide 3: Caution Concerning Non-GAAP Financial Measures
Caution Concerning Non-GAAP Financial Measures To supplement BD's consolidated financial statements presented on a U.S. GAAP basis, the Company discloses certain non-GAAP financial measures. These non- GAAP financial measures are not in accordance with generally accepted accounting principles in the
Slide 4: Basis of Presentation
Basis of Presentation All dollar amounts presented are US$ in millions, unless otherwise indicated, except per share figures. Certain financial information excludes the impact of foreign currency translation. “FXN” denotes currency neutral basis. We calculate foreign currency-neutral percentages by
Slide 5: BD is an innovative medtech leader
BD is an innovative medtech leader with the global reach and scale to address healthcare’s most pressing challenges Revenues by segment RyRy 70,000 + BD associates 190 + countries served 4OB + devices made annually $1B + annual R&D spending #1 in nearly all major served categories _ 27,000 + active
Slide 6: Tom Polen
Tom Polen Chairman, CEO, and President
Slide 7: BDX Key Investment Highlights
BDX Key Investment Highlights Achieving milestones and executing on value-creation as part of our BD 2025 strategy * Core business momentum continues with solid Q2 performance; reaffirm FY21 guidance + Advancing our product pipeline and tuck-in acquisition strategy to strengthen our growth profile >
Slide 8: Fiscal Q2 results reflects solid base performance
8 Fiscal Q2 results reflects solid base performance and contribution from COVID response; reaffirm FY21 guidance Fiscal Q2 FY21 Revenue Drivers Fiscal Q2 FY21 Revenues and Year-over-Year Percent Change (Commentary refers to FXN Y/Y basis unless specified) FXN * Continued strong revenue growth in YY%
Slide 9: BD's innovation, scale and strong execution essential partner in pandemic response
BD’s innovation, scale and strong execution has made us an essential partner in enabling the pandemic response globally DIAGNOSE TREAT PREVENT BD HealthSight™ with MedMined™ Data Analytics for real-time surveillance reporting and medication use reporting . . Over 1.7 billion devices IV drug delivery
Slide 10: Advancing our COVID-19 diagnostic testing portfolio
10 We are making steady progress advancing our COVID-19 diagnostic testing portfolio \ 1 The BD Max™ System The BD Veritor™ System Real time RT-PCR Test Rapid Point-of-Care Antigen Test * SARS-CoV-2 © SARS-CoV-2 ies + SARS-CoV-2 and Flu A+B . -CoV- lates SARS-CoV-2 and Flu A+B + Asymptomatic Screeni
Slide 11: ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™
™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™ ™
Slide 12: BD Alaris 510(k) submission milestone
We achieved an important milestone in our commitment to our customers and patients with our BD Alaris™ 510(k) submission The 510(k) submission is intended to: * Bring the regulatory clearance for the BD Alaris™ System up-to-date * Implement updated features and address open recall issues, including
Slide 13: Tuck-in M&A strategy strengthens expanding pipeline
Our tuck-in M&A strategy further strengthens our expanding pipeline of innovative solutions Rigorous Screening Criterion —— Straub’ » Strengthens strategic position and customer offering Creates shareholder value (ROIC Atherectomy and hurdles, growth and margin accretion) thrombectomy; Served market
Slide 14: R&D and tuck-in strategy focus on three innovation themes
R&D investments and tuck-in acquisition strategy focuses on our three key innovation themes and growth opportunities Applying smart devices, robotics & analytics/artificial intelligence to care processes Launched Q2 FY21; & ka Enabling new care settings Controlled drug storage, @$ Improved diagnosis
Slide 15: Diabetes Care
Diabetes Care MMS 14% S * FY20 revenues: ~ $1.1 billion 9% . DC * Global market share leader in BD FY20 6% insulin injection devices guy ten, * Serving an estimated 30 million SURG “PT mion patients worldwide 6% 4 Lo % Pl x , 9% o* % P “Oxy, oe lag 2 Notes: Market share and estimated number of patie
Slide 16: Benefits for both entities
16 We see several benefits for both entities; a spin off allows NewCo to realize its full potential —— NewCo 3 * — Builds upon focused purpose of improving care for patients with diabetes * Leverages global, market-leading position in pen needles * — Allocates capital and resources more effectively
Slide 17: Diabetes spin off transaction summary
17 Diabetes spin off transaction summary Transaction details Strategic rationale Leadership & governance Financial details Timing and closing conditions Spin-off expected to be implemented by means of a distribution of 100% of the shares of a new publicly traded entity to BD stockholders and is inte
Slide 18: NewCo will be led by an experienced management team
18 NewCo will be led by an experienced management team Dev Kurdikar Chief Executive Officer of NewCo * Joined BD February 2021 and currently serves as Worldwide President, BD Diabetes Care. * Kurdikar served as CEO and president for Cardiac Science, a global manufacturer of automated external defibr
Slide 19: Dev Kurdikar
Dev Kurdikar Worldwide President, Diabetes Care Incoming CEO, NewCo
Slide 20: NewCo is a leading insulin delivery company
20 NewCo is a leading insulin delivery company with significant manufacturing expertise, scale and global reach Other International 13% Other Emerging United Markets States 9% FY20 52% revenues China $1,084 8% million Europe 18% World-class manufacturing facilities - Corporate offices located in New
Slide 21: Diabetes is a growing chronic condition
Diabetes is a growing chronic condition that increases the risk of health complications and burdens healthcare systems globally Prevalence of diabetes in adults (20-79) in IDF Regions, by age adjusted comparative diabetes prevalence Worldwide 8.3% ——p 9.6% 2019 2045 Estimated number of adults with d
Slide 22: NewCo can use the spin as an operating catalyst
As a separate entity, NewCo can use the spin as an operating catalyst to effect change and chart its own course Capitalize on the large, unmet medical needs Strong cash flows and financial flexibility to of diabetes care and continuum of care support M&A to accelerate revenue growth to expand produc
Slide 23: Tom Polen
Tom Polen Chairman, CEO, and President
Slide 24: Building on our ESG leadership and 2030+ strategy
24 We are building on our ESG leadership and advancing our 2030+ sustainability strategy > Climate change: Minimize our contribution to global emissions and utilize our capabilities to address unmet health needs for fe ) climate-vulnerable populations. Commitment to reduce Scope 1 and 2 GHG emission
Slide 25: Progress advancing our BD 2025 strategy
We are making significant progress advancing our BD 2025 strategy with several milestones achieved BD 2025: Our Value Creation Framework 4 Empower 25 Optimize Portfolio i) log Improve Simplify Processes 4 Inspire Quality Digitalization BD Way GY GY GY GY YG g Identified priority high growth areas; i
Slide 26: Chris Reidy
Chris Reidy EVP, CFO & CAO
Slide 27: Fiscal Q2 results reflects solid base performance
27 Fiscal Q2 results reflects solid base performance and contribution from COVID response; reaffirm FY21 guidance Fiscal Q2 FY21 Revenue Drivers Fiscal Q2 FY21 Revenues and Year-over-Year Percent Change (Commentary refers to FXN Y/Y basis unless specified) FXN . YY%A Q2 FY21 Reported FXN (ex-COVID .
Slide 28: BD Medical: Continued strength in Pharmaceutical Systems
BD Medical: Continued strength in Pharmaceutical Systems plus COVID-19 response and acuity benefits Q2FY21 FXN Y/Y BD Management Commentary Business Unit Revenues % Change — (Commentary refers to FXN Y/Y basis unless specified) Medication Delivery $999M +8.1% * COVID-19 driving higher acuity of care
Slide 29: BD Life Sciences: COVID-19 diagnostic testing benefit
BD Life Sciences: global benefit from COVID-19 diagnostic testing and research activity recovery in Biosciences FXN Y/Y % Change Q2 FY21 FXN Y/Y (exCOVID BD Management Commentary Business Unit Revenues % Change testing) (Commentary refers to FXN Y/Y basis unless specified) Integrated $1,261M +46.2%
Slide 30: BD Interventional: UCC continues to deliver steady growth
BD Interventional: UCC continues to deliver steady growth; progressive recovery from COVID-19 resurgence Q2FY21 FXN Y/Y BD Management Commentary Business Unit Revenues % Change — (Commentary refers to FXN Y/Y basis unless specified) Surgery $292M (7.7%) * Sales impacted by COVID-19 resurgence in US
Slide 31: US growth dampened; International strength driven by COVID and China
US growth dampened by COVID resurgence and absence of flu; International strength driven by COVID response and China Fiscal Q2 FY21 Revenue Drivers (Commentary refers to FXN Y/Y basis unless specified) Q2 FY21 Reported FXN United States $ in millions YIY A YY A Solid core revenue growth plus the add
Slide 32: Q2 FY21 P&L shows strong revenue and adjusted EPS growth
32 Our Q2 FY21 P&L shows strong revenue and adjusted EPS growth while investing for the long-term prospects BD Management’s Commentary Q2FY21 Q2FY20 Reported FXN Our COVID-diagnostic profit reinvestments are (Adjusted, in millions $ in millions YO YO reflected down our P&L. $4,907 $4,253 * Gross mar
Slide 33: Capital allocation strategy prioritizes growth
33 Our capital allocation strategy prioritizes growth, includes a competitive dividend and potential share repurchases FY 2018-2020 cash allocation BD expects capital deployment on one or more of: Tucein M&A Internal Tuck-in M&A, Capex 0.4B yaw investments to €&Y equity i ! —= quity investments $2.7
Slide 34: We reaffirm our fiscal 2021 guidance ranges
We reaffirm our fiscal 2021 guidance ranges Revenues Adjusted EPS Adjusted EPS of $12.75-$12.85 Reported revenue growth’ of 12%-14% FX-neutral revenue growth’ of 10%-12% Reported EPS growth! of 25%-26% FX impact approx. +2.0% FX-neutral EPS growth! of 24%-25% Guidance incorporates the following assu
Slide 35: Question & Answer Session
35 Question & Answer Session Tom Polen Chairman, CEO and President Chris Reidy EVP CFO and CAO Alberto Mas EVP, President of BD Medical Simon Campion EVP President of BD Interventional Dave Hickey EVP President of BD Life Sciences Kristen M. Stewart, CFA SVP, Strategy and Investor Relations
Slide 36: Appendix
Appendix
Slide 37: BD Veritor Plus System
37 BD Veritor™ Plus System The BD Veritor™ Plus System for Rapid Detection of SARS-CoV-2 is intended for the qualitative detection of SARS-CoV-2 nucleocapsid antigens in direct anterior nasal swabs from individuals who are either suspected of COVID-19 by their health care provider within the first f
Slide 38: About the BD MAX System and SARS-CoV-2 Reagent Kits
38 About the BD MAX™ System and BD® SARS-CoV-2 Reagent Kits The BD MAX™ System is a molecular diagnostic platform already in use at thousands of laboratories worldwide. The system is fully automated, reducing the opportunity for human error and increasing the speed to result, and can process 24 samp
Slide 39: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change (Unaudited; Amounts in millions, except per share data) Interest Acquisitions & Other Income Other _—_—Income Gross Other (Income) Operating (Expense) —_Income, Tax Net Dilut
Slide 40: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change (Unaudited; Amounts in millions, except per share data) Interest Acquisitions & Other Income Other Income Gross Other (Income) Operating (Expense) ~—_Income, Tax Net Diluted
Slide 41: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change (Unaudited; Amounts in millions, except per share data) Revenues [Three Months Ended Mar 31, 2021 versus Mar 3 2020 Acquisitions & Gross Profit Other SSG&A Restructurings Oth
Slide 42: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Year-to-Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change (Unaudited; Amounts in millions, except per share data) Acquisitions & Other Income Other_—_—Income Gross Other (Income) Operating (Expense) _—_Income, Tax Net Diluted Rev
Slide 43: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Year-to-Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change (Unaudited; Amounts in millions, except per share data) ‘Acquisitions & Other Income Other Income Gross Other (Income) Operating (Expense) _—_Income, Tax Net Diluted Reven
Slide 44: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Year-to-Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change (Unaudited; Amounts in millions, except per share data) Acquisitions & Other Income Other Income Gross Other (Income) Operating (Expense) —_Income, Tox Net Diluted Revenue
Slide 45: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Revenues by Business Segments and Units Quarterly Reconciliation of Reported Change and Adjusted Foreign Currency Neutral Change For the Three Months Ended March 31, 2021 (Unaudited; Amounts in millions) A B c D=(A-BYB —-E=(A-B-C)/B Year-over-year % change $ in m
Slide 46: Impact of COVID-Diagnostics
impact of COVID-Diagnostics 11.0% 10.5% impact of COVID-Diagnostics 42.1% 40.1% impact of COVID-Diagnostics 56.3% 53.7% ™ ™
Slide 47: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Revenues by Geographic Regions Quarterly Reconciliation of Reported Change and Adjusted Foreign Currency Neutral Change For the Three Months Ended March 31, 2021 (Unaudited; Amounts in millions) A B c ID=(A-BY/B —-E=(A-B-C)/B Year-over-year % change $inmillions 2
Slide 48: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Net Income to Adjusted EBITDA Last Twelve Months Ending March 31, 2021 (Unaudited; Amounts in millions) Reported GAAP net income $ 1,716 Adjusted for: Interest ao 501 Share-based Serie 241 Tansactiong and other costs rin a 67 ae ae initiative-related costs a 6) 1
Slide 49: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation FY2021 Outlook Reconciliation FY2021 Revenue Outlook (year-over-year % FY2020A Reported % (reset 20 Currency ($ millions) Change (FX) Impact BDX Revenue $17,117 412% to+14% — ‘~ +2.0% ‘+10% to +12% FY2021 Adjusted EPS Outlook Foreign Currency Neutral % Change FY2
Slide 50: BD Investor Relations Team Contact Information
BD Investor Relations Team Contact Information Kristen M. Stewart, CFA SVP, Strategy & Investor Relations Kristen.Stewart@bd.com Nadia Goncalves Debbie Morris Senior Director, Investor Relations Senior Director, Investor Relations Nadia.Goncalves@bd.com Debbie.Morris@bd.com Adam Reiffe Linda Galati
Becton, Dickinson and Company — Q2 FY2021 Earnings Presentation on 6ix