Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — 34th Annual J.P. Morgan Healthcare Conference (January 2016)
28 slides from Agilent Technologies's conference presentation, Jan 12, 2016
Slide 1: Agilent Technologies
AGILENT TECHNOLOGIES JP MORGAN HEALTHCARE CONFERENCE
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earning
Slide 3: Agilent at Glance
Agilent at Glance Leadership in steadily Attractive recurring FY15 financial growing end-markets revenue base results Most of the world’s (1) $45B TAM in 6 end markets 265,000 labs using Agilent solutions $4B 19.6% Revenue Operating Margin (3,4) Life Sciences & Agilent Diagnostics & Applied Markets
Slide 4: 2015 – A Transformational Year for Agilent
2015 – A Transformational Year for Agilent Launched Agile Agilent Delivering Results A multi-year cost reduction and rationalization program, Highest core growth since 2011 largest organizational change FY12 FY13 FY14 FY15 in Agilent’s history Core y/y revenue 3.8% 4.5% 4.9% 6.4% growth(1) Building
Slide 5: FY15 Strategic Acquisitions for Growth
FY15 Strategic Acquisitions for Growth Leaders in their application space expand Agilent capabilities Cartagenia Seahorse Bioscience A leading provider of software and Unique live cell analysis technology services for clinical genetics and complements Agilent’s separations and molecular pathology la
Slide 6: Agilent’s Winning Strategy
Agilent’s Winning Strategy The World’s Premier Laboratory Partner Chemical Academia & Clinical & The Environment & Energy Food Pharma Government Diagnostics $45B (1) Opportunity $13B(1) $22B(1) $10B(1) Premium value creation Premium market positions • Above Market Growth • Lead Analytical Lab • Oper
Slide 7: Above market growth strategy
Above market growth strategy Drive the science and the economics of the lab Drive the science and Leverage analytical strengths economics of the lab to drive success in diagnostics Instruments & Tools Analytical Analytical lab solutions Lab and lab enterprise services Services & Consulting Clinical
Slide 8: LSAG Lead The Analytical Lab
LSAG Lead The Analytical Lab 7
Slide 9: LSAG Leads the Analytical Labs
LSAG Leads the Analytical Labs Breakthrough solutions delivered via One Global Go-to-Market Model Key challenges of our Analytical Lab customers Lab manager: Research Scientist: Procurement: How do I secure Which solution will Who provides the 100% uptime with best support our lowest cost-of- round-
Slide 10: LSAG Key Initiatives and FY15 Results
LSAG Key Initiatives and FY15 Results Continued strong growth trajectory Key growth initiatives FY15 Results New solutions for Biopharmaceutical analysis Revenue: $2.1B Expand Core Growth: 4% Maximize oligo synthesis OM%(1) : 18.6% Pharma for DNA/RNA research & A&G Continued momentum from Drive grow
Slide 11: ACG Win in Lab Enterprise Management
ACG Win in Lab Enterprise Management 10
Slide 12: ACG Addresses a Growing Demand for Lab-wide Economic Value and Productivity
ACG Addresses a Growing Demand for Lab-wide Economic Value and Productivity Key challenges of our CrossLab customers Lab manager: Team Lead: Procurement: How do I reduce the How do I optimize How can we lower complexity of the the instrument overall cost of enterprise? performance? ownership across
Slide 13: ACG Key Initiatives and FY15 Results
ACG Key Initiatives and FY15 Results Leveraging strong presence in the lab Key growth initiatives FY15 Results Evolve enterprise solutions to Launched brand promise: deliver greater outcomes “Delivering vital, actionable laboratory insights that drive superior scientific, operational Win with Expand
Slide 14: DGG Advance Clinical Diagnostics
DGG Advance Clinical Diagnostics 13
Slide 15: DGG Leads Agilent’s Strategy in Clinical Research & Diagnostics
DGG Leads Agilent’s Strategy in Clinical Research (CR) & Diagnostics (Dx) Key challenges of our CR & Dx customers Lab manager: Lab tech: Physician: How can I maximize How can we How can we better productivity and optimize work-flow treat diseases earlier reduce overall cost and obtain real-time and
Slide 16: DGG Key Initiatives and FY15 Results
DGG Key Initiatives and FY15 Results Back on the growth track with OM nearing 20% Key growth initiatives FY15 Results Revenue: $662M Accelerate OMNIS market uptake Core Growth: 7% Regain OM%(1) : 13.3% pathology leadership Performance accelerated through Commercialize new CDx assays year: FDA warnin
Slide 17: Companion Diagnostics
Companion Diagnostics Undisputed leader in CDx Improve patient outcome in partnership with Agilent launched two FDA approved Pharma – leveraging Dako brand and leadership PD-L1 CDx in 2015 120 CDx dedicated employees +25 Running programs 123 FDA approvals: 8: PMA, 46: sPMA, 69: 510k Oncology as main
Slide 18: Agilent Long Term Operating Model & FY16 Outlook
Agilent Long Term Operating Model & FY16 Outlook 17
Slide 19: Agilent Operating Model
Agilent Operating Model 5% 22% 85% Operating margin Free cash flow Core revenue growth (1) by 2017 to shareholders Above Market Expanding Balanced Growth Operating Margins capital allocation (1) Long-term, refers to FY16 onwards and excludes M&A and business exits and divestitures; core excludes imp
Slide 20: Capital Returns and FY16 Guidance
Capital Returns and FY16 Guidance Deploy Capital for Long Term Shareholder Value • Invest in the business • Return unused cash to shareholders • FY15: $400M returned through combination of dividends( $133M) and share repurchases ($267M) • FY16: $630M planned via dividends (~$150M) and opportunistic
Slide 21: Q&A in Breakout Room
Q&A in Breakout Room 20
Slide 22: Appendix
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Slide 23: Strong positions across all end-markets
Strong positions across all end-markets #1 in Applied - strong in Life Sciences - emerging in Dx Market LT market Market Revenue End-markets(1) size growth position mix FY15 Chemical & $4.2B 2-4% 25% Energy Environment $5.2B 2-4% #1 13% Food $4.2B 4-6% 11% Pharma $11.5B 3-5% #2 27% Academia & $10.4B
Slide 24: How We Will Win
How We Will Win Execution of key strategic priorities FY17 FY16 FY15 Lead Leverage Transition Restructured operations Streamline R&D Drive commercial excellence Agile SG&A Optimize infrastructure Integrate Dako businesses Agilent Rationalized portfolio Continuous portfolio reviews Drive continuous c
Slide 25: Non-GAAP Income from Continuing Operations and Diluted EPS Reconciliations
AGILENT TECHNOLOGIES, INC. NON-GAAP INCOME FROM CONTINUING OPERATIONS AND DILUTED EPS RECONCILIATIONS (In millions, except per share amounts) (Unaudited) PRELIMINARY Year Ended October 31, Diluted 2015 EPS GAAP Income (loss) from continuing operations $ 435 $ 1.30 Non-GAAP adjustments: Asset impairm
Slide 26: Reconciliations of Revenue by Segment Excluding NMR, Acquisitions, Divestitures
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE BY SEGMENT EXCLUDING THE NMR BUSINESS, ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) PRELIMINARY GAAP Year-over-Year GAAP Revenue by Segment FY 2015 FY 2014 % Change Life Sciences and Applied M
Slide 27: Non-GAAP Income from Continuing Operations and Diluted EPS Reconciliations
AGILENT TECHNOLOGIES, INC. NON-GAAP INCOME FROM CONTINUING OPERATIONS AND DILUTED EPS RECONCILIATIONS (In millions, except per share amounts) (Unaudited) PRELIMINARY Year Ended October 31, Diluted 2015 EPS GAAP Income (loss) from continuing operations $ 435 $ 1.30 Non-GAAP adjustments: Asset impairm
Slide 28: FY16 Cash Flow Projection
F Y 1 6 C ASH F LOW PROJECTION R E C O N C I L I A T I O N B E T W E E N “ A N A LY S T A N D I N V E S T O R D AY ” A N D “ Q 4 1 5 E A R N I N G S C A L L ” FY16 Analyst and Q4 15 Earnings Call Investor Day Nov15 Operating Cash Flow $720M $700M (Excluding one time spend) Capex <$100M> <$140M> Free
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