Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Investor Day (November 2021)
106 slides from Becton, Dickinson And's investor day presentation, Nov 12, 2021
Slide 1: Investor Day
w | Investor & | Day Advancing the world of health™ & BD
Slide 2: Caution Concerning Forward-Looking Statements
Caution Concerning Forward-Looking Statements This presentation contains certain estimates and other forward-looking statements (as defined under Federal securities laws) regarding BD’s future prospects and performance, including, but not limited to, future revenues, margins, and earnings per share,
Slide 3: Caution Concerning Non-GAAP Financial Measures
Caution Concerning Non-GAAP Financial Measures To supplement financial measures prepared in accordance with generally accepted accounting principles in the United States. ("GAAP"), we use financial measures not prepared in accordance with GAAP, including base business margins, base revenue, adjusted
Slide 4: Caution Concerning Products
Caution Concerning Products Not all products in the coming section are launched, and some are only launched/available in some regions given regulatory authorizations. Furthermore: The BD Veritor System for Rapid Detection of SARS-CoV-2 has not been FDA cleared or approved, but has been authorized by
Slide 5: Basis of Presentation
Basis of Presentation • All dollar amounts presented are USD ($) in millions, unless otherwise indicated, except per share figures. • Certain financial information, described as FXN (defined below), excludes the impact of foreign currency translation. • Revenue year-over-year change comparisons are
Slide 6: Glossary
Glossary Acronym Defined Term Acronym Defined Term AI Artificial intelligence IDS Integrated Diagnostics Solutions BDB Biosciences LDD Low double-digit BPS Basis points M&A Mergers and acquisitions CAGR Compounded annual growth rate MDS Medication Delivery Solutions Capex Capital expenditures MMS Me
Slide 7: Agenda
8:00 AM Welcome 8:05 AM Strategic Overview (20 mins) TOM POLEN 8:30 AM Medical Segment (30 mins) ALBERTO MAS, RICK BYRD, MIKE GARRISON, ERIC BORIN Q&A (15 mins) 9:20 AM Life Sciences (30 mins) DAVE HICKEY, PUNEET SARIN, BROOKE STORY Agenda Q&A (15 mins) 10:10 AM BREAK 10:25 AM Interventional Segment
Slide 8: Delivering value for all stakeholders
Delivering value for all stakeholders Tom Polen Chairman, CEO, and President
Slide 9: BD is helping reinvent healthcare, driven by our purpose
BD is helping reinvent healthcare, driven by our purpose of advancing the world of health™ to improve: Discovery and Diagnosis Medication Delivery Interventional Treatment 9
Slide 10: BD is an innovative med tech leader
BD is an innovative med tech leader Unmatched scale and global reach to address healthcare’s most pressing challenges 45B + REVENUE BY SEGMENT FY21 REVENUE BY REGION devices made annually 54% 22% 190 + United States Europe countries served SURG UCC 6% MDS 6% 20% PI 29,000 + 9% active patents BDB 6%
Slide 11: Delivered on FY21 goals amid unprecedented environment
Delivered on FY21 goals amid unprecedented environment Strengthening our competitive position and long-term growth profile Strong execution delivered revenue and EPS above expectations Industry leading role in COVID-19 response across diagnosis, treatment and prevention Future growth opportunities a
Slide 12: Delivered on FY21 goals amid unprecedented environment
Delivered on FY21 goals amid unprecedented environment Strengthening our competitive position and long-term growth profile Cash flow initiatives demonstrating success: +31% or up $1.1 billion Strengthened balance sheet from 3.4x1 net leverage to 2.6x1 Returned $2.8 billion to shareholders through $1
Slide 13: Strong performance is creating momentum behind our BD2025 strategy
Strong performance is creating momentum behind our BD2025 strategy Accelerating growth and driving stronger margins 13
Slide 14: Our plan for substantial, sustained shareholder value creation
Our plan for substantial, sustained shareholder value creation 1 2 3 4 5 Strengthened Reshaped Expanded Disciplined and Strong team long-term innovation simplification balanced capital focused on targeted growth pipeline and programs deployment execution profile of 5.5%+ tuck-in M&A underway driving
Slide 15: Two axes of growth: Durable Core and Transformative Solutions
Two axes of growth: Durable Core and Transformative Solutions DURABLE CORE: ~$14B1 TRANSFORMATIVE SOLUTIONS: ~$4B1 Backbone of healthcare Reinventing the future of healthcare Smart connected care New care settings Chronic disease outcomes 1. FY21 revenue excluding $2.0 billion of COVID only testing.
Slide 16: Delivering reliable and consistent growth in our durable core
Delivering reliable and consistent growth in our durable core Extending our unmatched relevance, global presence and capabilities • ~90% of hospital patients will be touched Expected FY21 – FY25 by one of our 45 billion devices Ubiquitous to • Leader in a large majority of served categories healthca
Slide 17: A legacy of transforming healthcare to catalyze new phases of growth
A legacy of transforming healthcare to catalyze new phases of growth Today’s transformative solutions become tomorrow’s durable core 1950s 1980s 1990s 2010s Reusable → disposable Addressing infectious Healthcare Connected medication Chronic disease medical devices disease (HIV/TB) worker safety mana
Slide 18: BD is investing in three irreversible forces reinventing healthcare
BD is investing in three irreversible forces reinventing healthcare Fueling our next phase of growth SMART CONNECTED CARE NEW CARE SETTINGS CHRONIC DISEASE OUTCOMES AI, informatics, and robotics will Shift into new settings creates major Medical technology will have a transform healthcare processes,
Slide 19: We are accelerating our investments into transformative solutions
We are accelerating our investments into transformative solutions Leveraging BD’s competitive advantages into faster growing, higher margin markets Category Growth: High-single Digits to Double Digits Expected FY21 – FY25 Smart • Smart medical devices connected • Lab automation and informatics care
Slide 20: Tuck-in M&A is a new lever for accelerating our strategy
Tuck-in M&A is a new lever for accelerating our strategy Meaningful capital allocation through our strengthened balance sheet DISCIPLINED FINANCIAL EXECUTION CONTRIBUTION 13 transactions Over $900 million Durable Core closed since FY20 capital deployed since FY20, with Built multi-year ~80% towards
Slide 21: Purposeful and balanced investments driving consistent, durable growth
Purposeful and balanced investments driving consistent, durable growth Shifting our portfolio mix with an increasing contribution from transformative solutions DURABLE TRANSFORMATIVE CORE SOLUTIONS ~$14B 1 ~$4B1 CapEx 2 ~75% ~25% R&D Spend ~40% ~60% M&A Investment ~20% ~80% FY21 to FY25 WAMGR ~4.0%
Slide 22: Diabetes Care spin represents value creation opportunity for all stakeholders
Diabetes Care spin represents value creation opportunity for all stakeholders Active portfolio management enables acceleration of RemainCo and NewCo FY21 revenues Global leader in insulin Serving an estimated ~$1.2 billion injection devices 30 million patients worldwide • Strengthens the growth prof
Slide 23: Driving value through long-standing ESG efforts
Driving value for all stakeholders through our long-standing and industry-leading ESG efforts IMPACTING COMPANY HEALTH IMPACTING PLANET HEALTH IMPACTING COMMUNITY HEALTH IMPACTING HUMAN HEALTH 23
Slide 24: Our ESG strategy and 2030+ goals
Our ESG strategy and 2030+ goals support human health, communities and the planet • Setting science-based targets that will: • Ensuring equal pay by gender worldwide WE ARE ̶ reduce our Scope 1 and 2 greenhouse gas emissions 46% by • Paying competitive market rates utilizing living wage 2030 (from a
Slide 25: Our plan for substantial, sustained shareholder value creation
Our plan for substantial, sustained shareholder value creation 1 2 3 4 5 Strengthened Reshaped Expanded Disciplined and Strong team long-term targeted innovation simplification balanced capital focused on growth profile of pipeline and programs deployment execution and 5.5%+ tuck-in M&A underway dri
Slide 26: Who you'll hear from today
Who you’ll hear from today Executive and Regional Leadership BD Medical Leadership Alberto Mas Eric Borin Rick Byrd Mike Garrison WW President, WW President, WW President, Tom Polen Christopher DelOrefice EVP and President, Pharmaceutical Systems Medication Delivery Medication Management Chairman, E
Slide 27: Investor Day
w | Investor & | Day Advancing the world of health™ & BD
Slide 28: Alberto Mas, EVP and President, Medical Segment
Alberto Mas EVP and President, Medical Segment
Slide 29: BD Medical key takeaways
BD Medical key takeaways Strong FY21 performance builds robust foundation for post-pandemic BD2025 growth and margin objectives while assertively navigating headwinds. GROWTH THESIS Drive above category growth rates in our dynamic durable core 1 for all our businesses through deliberate investments
Slide 30: BD Medical is a leader in each of our business units
BD Medical is a leader in each of our business units MEDICATION DELIVERY MEDICATION PHARMACEUTICAL SOLUTIONS MANAGEMENT SOLUTIONS SYSTEMS • Vascular access devices • Acute infusion • Pre-filled syringes KEY • Vascular care and maintenance • Acute dispensing • Self-administered injection systems CATE
Slide 31: Driving portfolio towards higher growth spaces and expanding WAMGR
We are driving our portfolio towards higher growth spaces and expanding our WAMGR BD MEDICAL PROJECTED MEDICATION DELIVERY SOLUTIONS Revolutionizing Vascular Access REVENUE MIX EVOLUTION Management (VAM) with digitally enabled best in class products Percent Transformative delivering improved outcome
Slide 32: Balanced innovation pipeline expected to deliver >$600M incremental revenue by FY25
Balanced innovation pipeline expected to deliver >$600M in incremental revenues by FY25 FY21 M&A Added Innovative Offerings FY21 FY22 FY23 FY24+ AccuCathTM Next gen Pump StatLock TM Next gen Expanded Medication ` compatible PosiFlushTM portfolio expansion OptimaTM IV sets with CueTM tracking system
Slide 33: Medication Delivery Solutions
Medication Delivery Solutions Rick Byrd WW President, Medication Delivery Solutions
Slide 34: BD+Bard+CFN portfolio to drive above market growth in Vascular Access
Our BD+Bard+CFN portfolio expected to drive above market growth in Vascular Access Management HIGHLY ATTRACTIVE SPACE SUSTAINABLE, ABOVE GLOBAL LEADER Catheters MARKET GROWTH + + Skin antisepsis Competitive gains Portfolio breadth $9B+ Ultrasound Most comprehensive served market guidance & Growing g
Slide 35: Transformative innovation to drive long-term growth to 5%+
Transformative innovation expected to drive long-term growth to 5%+ by expanding into higher value segments Digital solutions “One-stick hospital stay” Vascular Access Management category expansion Integrate smart devices, data and 0.07 analytics to create digital solutions for key 5%+ clinical proc
Slide 36: "One-stick hospital stay" creates $500M+ growth opportunity
“One-stick hospital stay” aims to transform the in-patient experience creating $500M+ long-term growth opportunity UNACCEPTABLE BD UNIQUELY HIGH-VALUE STATUS QUO POSITIONED INNOVATION AGENDA Multiple sticks per hospital stay Leadership & innovation legacy Impact & growth Poor first-stick insertion N
Slide 37: MDS smart device strategy opens growth opportunity in IV bolus delivery
MDS smart device strategy opens significant growth opportunity, beginning with intelligent IV bolus medication delivery CONNECTED BD MED SIGNIFICANT UNMET NEEDS IN IV BOLUS BD INTELLIPORT™ SYSTEM SAFETY ECOSYSTEM ~$1.3B total available market Smart connected IV injection port $21B direct medical cos
Slide 38: Medication Management Solutions
Medication Management Solutions Mike Garrison WW President, Medication Management Solutions
Slide 39: Strategy in connected medication management to return to ~6% growth
Our strategy in connected medication management expected to return us to durable ~6% growth $5B served space, ~4% growth BROADEST, CONNECTED OFFERING INVESTING IN MEANINGFUL BREADTH SCALE INNOVATION POWERING NEXT Only provider of end-to-end connected #1 provider of infusion and GENERATION SOLUTIONS
Slide 40: Aim to launch enhanced BD Alaris system following 510(k) clearance
Focus on the foundation – aim to launch enhanced BD Alaris™ system following 510(k) clearance 40 Note: Pending 510k clearance; not available for sale in the United States
Slide 41: Driving growth via expansion in new care settings
Driving growth via expansion in high growth new care settings Targeting to double revenue (~$200M) in category with tailored solutions by 2025 $0.7B served space, ~10% growth DYNAMIC CHANGES ACROSS UNIQUELY POSITIONED FOR INTEGRATED DELIVERY NETWORKS GROWTH AND VALUE CREATION Shift in patient RETAIL
Slide 42: Pharmaceutical Systems
Pharmaceutical Systems Eric Borin WW President, Pharmaceutical Systems
Slide 43: Aim to deliver sustainable HSD growth in high value categories
Aim to deliver sustainable HSD growth by focusing on rapidly growing, high value categories $3B served space, +7% WAMGR SERVED CATEGORY BD 70%+ of the top 100 $3B CAGR1 CAGR1 biopharma companies use BD pre-fillable syringes 12% DD Positioning to win in growing 0.8 Self injection biotech and vaccine
Slide 44: Expanding portfolio of innovative products for the biologics space
Expanding portfolio of innovative products and services that aim to deliver 10%+ growth in the high-growth biologics space $2.2B served space, +7% Growth SERVED CATEGORY LEADING INTEGRATED SOLUTIONS AND BD $2.2B $2.9B CAGR1 Position NOVEL TECHNOLOGIES FOR SENSITIVE BIOLOGICS +7% BD Neopak™ BD Neopak
Slide 45: Opportunity in $2.5B+ category with novel solutions
Opportunity to unlock significant growth in $2.5B+ category by bringing novel solutions to enable the shift to new care settings $2.5B TAM 2025 TOTAL ADDRESSABLE MARKET New wearable device portfolio BD $2.5B CAGR1 Wearable 0.75 BD Libertas™ BD Evolve™ devices DD Available FY22 Available FY22 Drive s
Slide 46: In closing, BD Medical is positioned to deliver next-tier impact
In closing, BD Medical is positioned to deliver next-tier impact Drive a dynamic durable Reinvent healthcare in our Continued focus core through category categories by investing in on quality, innovation and smart connected care and compliance, and operational excellence new care settings margin exp
Slide 47: Investor Day
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Slide 48: Dave Hickey, EVP and President, Life Sciences Segment
Advancing the world of healthTM Dave Hickey EVP and President, Life Sciences Segment
Slide 49: BD Life Sciences Key Takeaways
BD Life Sciences Key Takeaways Strong FY21 performance in core business and significant performance in COVID testing GROWTH THESIS Competing in attractive, growing categories and top tier 1 in all segments served Revenue growth target1 Capitalizing on our installed base of Molecular and POC 2 instru
Slide 50: A leader in all categories, delivering above served market growth
A leader in all categories, delivering above served market growth rates BIOSCIENCES INTEGRATED DIAGNOSTIC POINT OF CARE SOLUTIONS • Research Flow Cytometry • Microbiology • Professional POC Diagnostics KEY • Clinical Flow Cytometry • Specimen Management • At-Home Diagnostics CATEGORIES • Single-cell
Slide 51: Innovation investments accelerate expansion in high growth segments
Innovation investments accelerate expansion in high growth segments BIOSCIENCES Illuminating the immune system to BD LIFE SCIENCES PROJECTED increase experimental power and REVENUE MIX EVOLUTION faster time to insights Transformative 32% Solutions (FY25 11.2% WAMGR) 26% INTEGRATED DIAGNOSTIC SOLUTIO
Slide 52: 50+ major launches targeting $600M incremental revenue by 2025
Extending innovation leadership with 50+ major launches and targeting $600M incremental revenue by 2025. PLATFORMS FY21 FY22 FY23 FY24+ BD FACSDiscover™ S8 research sorter A8 research analyzer Clinical analyzer Biosciences BD Horizon™ R718 dye RY586 dye 4 new dyes 6 new dyes BD Lyric™/Duet™ OneFlow
Slide 53: Biosciences
Biosciences Puneet Sarin WW President
Slide 54: Advancing footprint and innovation targeting ~$100M growth annually
Advancing footprint and innovation targeting to deliver ~$100M growth annually by 2025 $3 Billion served space ~5.5% WAMGR RESEARCH CLINICAL BIOSCIENCES SERVED SEGMENTS DISCOVERY TRANSLATIONAL DIAGNOSTICS THERAPEUTICS 6% CAGR 12%+ CAGR 5% CAGR 10%+ CAGR Segment BD $3B CAGR CAGR 10% Single Cell Multi
Slide 55: Research solutions estimated to grow 8%+ with innovative technologies
Research solutions estimated to grow 8%+ with innovative technologies in instruments and reagents BD FACSDiscover™ BD Horizon™ • High-speed cell imaging-based sorting • Dyes with maximum brightness and minimized spillover • Advanced spectral analysis • Thousands of antibody/dye combinations • Standa
Slide 56: Pioneers in flow shaping the $1.5B research segment
Pioneers in flow uniquely positioned to continue shaping the $1.5B research segment with fully integrated solutions NEW NEW BD Horizon™ 900 new eCommerce customers antibodies and dyes since launch June 2021 PLAN GROWING HDD NEW BD Abseq™ Panel Designer antibodies and oligos RUN BD Cellview™ NEW BD R
Slide 57: Integrated Diagnostic Solutions
Integrated Diagnostic Solutions Brooke Story WW President
Slide 58: IDS targeting high single-digit growth through innovation
IDS targeting high single-digit growth through unique innovation in specimen management, microbiology and molecular $11 Billion served space ~5% WAMGR IDS SERVED SEGMENTS Segment BD $11B CAGR CAGR Expand with clinically differentiated menu for acute and high-throughput Molecular 9% LDD labs to gain
Slide 59: Targeting double-digit growth in $4.3B molecular category
Targeting double-digit growth in the $4.3B molecular category by leveraging expanded installed base and extensive assay menu BD MAX™ BD COR™ • Acute walkaway system • Fully integrated • Clinically differentiated menu automation • 60%+ installed base increase • Differentiated solution • 4X increase i
Slide 60: BD Onclarity HPV on BD COR in first year of launch
BD Onclarity™ HPV on BD COR™ in first year of launch in four EU countries: 30%+ share Cervical cancer is preventable BD Onclarity™ HPV BD COR™ System ANNUAL TOLL OF CERVICAL CANCER¹ 604,000 342,000 NEW CASES WOMEN DIED • Persistent genotype-specific • The only clinically • Targeting $150M+ HPV infec
Slide 61: Creating a disruptive blood collection category with $1B+ potential
BD is creating a disruptive blood collection category with $1B+ potential and capture the shift to new sites of care ~$150M category in FY21 Less invasive PARTNERS Retail Finger sizing card Pharmacy High quality results Urgent Care Right volume Hematology tube Patient Easy to use Service Centers Che
Slide 62: Point of Care
Point of Care Dave Hickey EVP and President, Life Sciences Segment
Slide 63: Access $2.2B opportunity across new care settings
Potential to access a $2.2B opportunity across new care settings, targeting $200M incremental revenue by 2025 $2.8 Billion served space, ~25% CAGR POC SERVED SEGMENTS POC PROFESSIONAL SELF-TEST AT HOME Segment BD CAGR 21-25 CAGR $6.9B New Care 2.2 Settings 67% New BD Veritor™ Plus POC Molecular (NAT
Slide 64: BD Life Sciences targets ~6-7% revenue growth and margin expansion
In summary, BD Life Sciences targets ~6-7% revenue growth and year over year margin expansion by… ... investing in ... collection and ... which will improve the transformative solutions diagnostics at diagnosis and treatment around smart, connected, new care settings of chronic conditions end-to-end
Slide 65: Investor Day
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Slide 66: BD Interventional
BD Interventional Simon Campion EVP and President, Interventional Segment
Slide 67: BD Interventional Key Takeaways
BD Interventional Key Takeaways While navigating elective procedure challenges, BD Interventional delivered strong FY21 performance which positions us well to drive future growth GROWTH THESIS Continue to deliver above market performance in our durable 1 core businesses by focused investments in: Re
Slide 68: BD Interventional is a leader in each business unit with ~$4B revenues
BD Interventional is a leader in each of our business units with ~$4B in revenues PERIPHERAL INTERVENTION SURGERY UROLOGY & CRITICAL CARE Sensica UO • Acute Urological Drainage • Peripheral Vascular Disease • Hernia Repair & Reconstruction KEY • Endourology • End Stage Kidney Disease • Infection Pre
Slide 69: Shifting portfolio towards higher growth spaces
BD Interventional is actively shifting its portfolio towards higher growth spaces while strengthening our durable core PERIPHERAL INTERVENTION Advancing care of chronic disease BD INTERVENTIONAL PROJECTED to reduce the burden to patients, REVENUE MIX EVOLUTION clinicians and caregivers across Percen
Slide 70: Innovation Funnel to deliver over $500M incremental revenue in FY25
Our Innovation Funnel will fund our transformative solutions and is expected to deliver over $500M in incremental revenue in FY25 INORGANIC INVESTMENTS FY21 FY22 FY23 FY24+ Rotarex NG Aspirex CTO BTK AV Fiber IO NextGen Atherectomy dialysis Thrombectomy crossing fiber balloon balloon Bead DCBs ISR i
Slide 71: Peripheral Intervention
Peripheral Intervention Paddy O’Brien WW President, Peripheral Intervention
Slide 72: Peripheral Intervention: expanding addressable market from $8B to $11B
Peripheral Intervention: Expanding our addressable market from $8B to $11B delivering an expected ~7% growth BD PERIPHERAL INTERVENTION ONCOLOGY / IO ESKD PVD Served Segments Category: $3.1B, ~6% Growth Category: $1.0B, ~6% Growth Category: $4.1B, ~6% Growth Transformative Solutions 73% Expanding in
Slide 73: Establishing venous category leadership with new innovations
We are establishing venous category leadership driving new innovations and delivering a compelling portfolio to our customers $1.5 billion market growing at ~6% ~6 active innovation programs to expand ~10 million1 Core venous platform category leadership in venous category Venous Thromboembolisms ad
Slide 74: Surgery
Surgery Kevin Kelly WW President, Surgery
Slide 75: BD Surgery: expanding addressable market from $9B to $14B
BD Surgery: Expanding our addressable market from $9B to $14B expected to deliver ~5-6% growth INFECTION BD SURGERY BIOSURGERY PREVENTION HERNIA Served Segments Category: $3.1B, ~6% Growth Category: $2.6B, ~4% Growth Category: $1.5B, ~4% Growth Transformative Solutions 30% Expanding into tissue rege
Slide 76: Leveraging Phasix to transform hernia surgery
Leveraging Phasix to transform hernia surgery from durable implantable to resorbable tissue regeneration and expanding into high growth adjacencies $3.5 billion @ ~5% growth Leading a surgical evolution to meet unmet patient & MARKET clinician needs across soft tissue repair OPPORTUNITY #1 Portfolio
Slide 77: Urology & Critical Care
Urology & Critical Care Rima Alameddine WW President, Urology and Critical Care
Slide 78: Urology and Critical Care: expanding addressable market from $5B to $7B
Urology and Critical Care: Expanding our addressable market from $5B to $7B targeting sustainable ~6-7% growth TARGETED TEMP HOMECARE BD UROLOGY & CRITICAL CARE ACUTE UROLOGY MANAGEMENT UROLOGY Served Segments Category: $2.4B, ~6% Growth Category: $200m, ~7% Growth Category: $2.7B, ~8% Growth Transf
Slide 79: Building a comprehensive incontinence platform
We are building a comprehensive incontinence platform that solves problems across the healthcare continuum $2.6 billion potential market growing at ~9% CAGR Contoured Improved Digital 400M1 Comfort Ease of Use Connectivity people suffering IMPROVE USER from incontinence EXPERIENCE globally Males Por
Slide 80: In closing, BD Interventional is positioned to continue its growth trajectory
In closing, BD Interventional is strongly positioned to continue its growth trajectory by delivering category leading solutions Drive strong durable Invest behind Enhancing Business core through category transformative capabilities and transformation leading innovations solutions to solve regional p
Slide 81: Investor Day
w | Investor & | Day Advancing the world of health™ & BD
Slide 82: BD Financials & Value Creation
BD Financials & Value Creation Christopher DelOrefice EVP and Chief Financial Officer
Slide 83: BD is well-positioned to create long-term value
BD is well-positioned to create long-term value 1 2 3 4 Reliable and Reshaped Expanded Strong cash flow strengthened innovation simplification and disciplined growth profile pipeline and programs capital tuck-in M&A delivering deployment strategy towards improved margin strategy higher growth profil
Slide 84: Well-positioned to create sustainable long-term growth
BD is well-positioned to create sustainable long-term growth REVENUE ($B) ADJUSTED EPS FREE CASH FLOW1 ($B) 5.5%+ CAGR Double-digit CAGR Double-digit CAGR excluding impact of COVID excluding estimated impact excluding estimated impact only testing of COVID only testing of COVID only testing $20.2 $1
Slide 85: Strong and sustainable cash flow profile
Strong and sustainable cash flow profile provides financial flexibility to support growth CASH FLOWS ($B) FREE CASH FLOW CONVERSION2 NET LEVERAGE3 $4.6 95% 3.7x 89% 3.4x 74% 3.0x $3.5 69% 2.6x $3.3 $3.4 $2.9 $2.7 $2.4 $2.0 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 GAAP OCF1 Free Ca
Slide 86: Disciplined financial policy creates value creation opportunities
Disciplined financial policy, supported by strong cash flows, creates continuous value creation opportunities ILLUSTRATIVE FY22 – FY25 CASH ALLOCATION ~$18B available for deployment after investing in R&D – Prioritizing tuck-in M&A to enhance our growth profile Financial policy anchored on – New mul
Slide 87: Committed to consistent dividend growth and competitive payout ratio
Committed to consistent dividend growth and competitive payout ratio • Increased annual dividend per share by ~5% to $3.48 for FY22 DIVIDEND PAYOUT RATIO 50th consecutive annual increase ~28%1 • Payout ratio is attractive relative to peers • Dividend payout expected to increase after the Diabetes ~2
Slide 88: R&D initiatives expected to double new product revenue by FY25
R&D initiatives expected to double new product revenue by FY25 INCREMENTAL NEW PRODUCT REVENUE1 >100 New product launches expected by FY25 ~$1.7B New products with potential to generate >25 $50m+ per year2 ~$0.8B New products with potential to generate >20 $30m - $50m per year2 FY21 FY25 Durable Cor
Slide 89: ~80% of capital expenditures deployed to value creating programs
~80% of capital expenditures strategically deployed to value creating programs ~20% ~60% DRIVING EFFICIENCIES (SIMPLIFY) ENABLING GROWTH • Network Architecture • Capacity expansion • Process and System Upgrade (e.g., pharmaceutical systems) • New products development Simplify ~20% Target ~$1B CAPEX
Slide 90: Tuck-in M&A is an ongoing lever to strengthen growth
Tuck-in M&A is an ongoing lever to strengthen growth METRIC TUCK-INS CLOSED FY18 - FY21 FY18-19 FY20-21 FY22 revenue ~$200M Deals Closed 3 13 with strong double-digit revenue growth expected through FY25 Capital Deployed1 >$200M >$900M Needle-free technology that enables Innovative health care autom
Slide 91: Diabetes spin optimizes value creation for all stakeholders
Diabetes spin optimizes value creation for all stakeholders Fundamental growth and value creation profile is enhanced post Diabetes spin RemainCo CONSIDERATIONS NewCo CONSIDERATIONS • RemainCo revenue and adjusted EPS growth profile enhanced as the • One of the largest pure-play Diabetes Diabetes Ca
Slide 92: Targeting reliable and consistent above market growth of 5.5%+
Targeting reliable and consistent above market growth of 5.5%+ Driven by tuck-in M&A and R&D weighted towards transformative solutions BD REVENUE MIX CAGR 5.5%+ ~25% TRANSFORMATIVE SOLUTIONS (WAMGR ~7.0% to ~8.0%) Highly attractive adjacent spaces that drive above current company growth rates ~20% ~
Slide 93: Margins expected to exceed historic peak levels by FY24
Margins expected to exceed historic peak levels by FY24 ~400 bps base operating margin improvement from FY21 through FY25 MARGIN DRIVERS THROUGH FY25 Completion of FY21 Project Leverage growth Expanded inflation Alaris pump COVID testing RECODE and annual cost mitigation programs clearance reinvestm
Slide 94: Multiple margin recapture programs underway
Multiple margin recapture programs underway RECODE initiatives planned to save ~$300 million by year-end 2024 BD’S UROLOGICAL DRAINAGE PORTFOLIO IS HIGHLY COMPLEX Recode will simplify our offering 6 9 3 2 Winning portfolio Substrates Balloon sizes Tip reinforcements Bag ink colors 3,421 6 2 10 8 Pro
Slide 95: Multiple margin recapture programs underway
Multiple margin recapture programs underway RECODE initiatives planned to save ~$300 million by year-end 2024 CURRENT GLOBAL MANUFACTURING FOOTPRINT INCLUDES 80 FACILITIES RECODE optimizes our footprint to enhance resilience and maximize value Winning portfolio Business process simplification Operat
Slide 96: Expanded inflation mitigation programs provide margin levers
Expanded inflation mitigation programs provide additional margin expansion levers Multiple margin recapture programs underway Strategic Portfolio mix Value-based sourcing and optimization shipping tiers supply initiatives strategies Value-based Performance- pricing and price Contract based rebates o
Slide 97: Well-positioned for strong and expanding value creation
Well-positioned for strong and expanding value creation Targeted growth profile 1 ~400 bps 5.5%+ base margin improvement Continued base revenue growth to drive double-digit dividend growth EPS growth STRONG CASH FLOW AND BALANCE SHEET PROVIDES ADDITIONAL VALUE CREATION OPPORTUNITIES 1. Targeted grow
Slide 98: Investor Day
w | Investor & | Day Advancing the world of health™ & BD
Slide 99: Appendix
Appendix
Slide 100: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Yearly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change Acquisitions Other Interest Other Income Diluted Gross and Other (Income) Operating Income Income, Tax Net Earnings per Revenues Profit SSG&A R&D Restructurings Expense Income (
Slide 101: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Yearly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change Acquisitions and Other Income Other Other (Income) Operating Interest Income Income, Tax Diluted Earnings Revenues Gross Profit SSG&A R&D Restructurings Expense Income (Expense)
Slide 102: Reported Diluted EPS to Adjusted EPS
Supplemental Non-GAAP Reconciliation Reported Diluted EPS to Adjusted EPS (unaudited) 2021 2019 Reported Diluted Earnings per Share $6.85 $3.94 Purchase accounting adjustments ($1.406 billion and $1.499 billion pre -tax, respectively) 1 4.82 5.46 Integration costs ($135 million and $323 million pre
Slide 103: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Fiscal Year Ended September 30 th, 2018 2019 2020 2021 ($ in millions) Net Cash Provided by Operating Activities 2,865 3,330 3,539 4,647 (OCF) Capital Expenditures (895) (957) (810) (1,231) Free Cash Flow (FCF) 1,970 2,373 2,729 3,416 2021 FCF from Covid Testing 1 (800)
Slide 104: Free Cash Flow Conversion Reconciliation
Free Cash Flow Conversion Reconciliation Fiscal Year Ended September 30 th, 2018 2019 2020 2021 ($ in millions) Net Income Applicable to Common 159 1,082 767 2,002 Shareholders After-Tax Impact of Specified Items 1 2,674 2,127 2,114 1,818 Adjusted Net Income for Common 2,833 3,208 2,881 3,819 Free C
Slide 105: Net Leverage Reconciliation
Net Leverage Reconciliation Fiscal Ended September 30 th, ($ million) 2018 (1) 2019 2020 2021 Net Income (Loss) (81) 1,233 874 2,092 Provision for (Benefit from) Income Taxes 1,044 (57) 111 150 Interest Expense 721 639 528 469 Depreciation & Amortization (2) 2,032 2,253 2,154 2,273 Stock Based Compe
Slide 106: Investor Day
w | Investor & | Day Advancing the world of health™ & BD
Becton, Dickinson and Company — Investor Day (November 2021) on 6ix