Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Q4 2023 Earnings Presentation
29 slides from Boston Scientific's earnings presentation, Jan 31, 2024
Slide 1: Q4 2023 Highlights
Q4 2023 Highlights January 31, 2024 1 Q4 2023 Financial & Operational Highlights | January 31, 2024
Slide 2: Safe Harbor for Forward-Looking Statements and Use of Document
Safe Harbor for Forward-Looking Statements and Use of Document Safe Harbor for forward-looking statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking sta
Slide 3: Q4 2023 Highlights
Q4 2023 Highlights Financial Results Operational Highlights • Net sales growth: • Received U.S. Food and Drug Administration (FDA) approval for the FARAPULSE™ Pulsed Field Ablation (PFA) System for the • +14.9% reported, +14.5% operational*,+13.6% isolation of pulmonary veins in the treatment of dru
Slide 4: WW Net Sales by Segment and Business
WW Net Sales by Segment and Business Q4 2023 Reported Net Sales: $3.725B Net Sales by Business; Segment Percentage of Total Net Sales MedSurg NM 39% $269M Cardiology Uro $240M EP $527M $553M CRM Cardiology $345M Watchman $1.751B $614M ICTx Endo $645M PI $533M Cardiovascular 61% 4 Q4 2023 Financial &
Slide 5: MedSurg Performance Summary
MedSurg Performance Summary Measure Q4 2023 Q4 2022 Change Y/Y ($ in millions) Reported Net Sales $1,441M $1,297M +11.1% Adjusted Operating Margin* 35.4% 31.9% +350 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency exchange
Slide 6: Cardiovascular Performance Summary
Cardiovascular Performance Summary Measure Q4 2023 Q4 2022 Change Y/Y ($ in millions) Reported Net Sales $2,285M $2,005M +13.9% Adjusted Operating Margin* 24.8% 23.0% +180 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency e
Slide 7: Living Our Values
Living Our Values Shaping a healthier planet Advancing care by Accelerating disability through solar power addressing disparities inclusion opportunities Boston Scientific activated its first European Camille Chang Gilmore, VP human Boston Scientific was named a Best Place virtual power purchase agr
Slide 8: Q4 & FY 2023 Net Sales vs. 2022
Q4 & FY 2023 Net Sales vs. 2022 Q4 2023 Reported FY 2023 Reported Organic* Growth Net Sales Net Sales ($ in millions) vs Q4 2022 vs FY 2022 Endoscopy $645 $2,482 11% 11% Urology $527 $1,964 10% 11% Neuromodulation $269 $976 3% 5% MedSurg $1,441 $5,422 9% 10% Interventional Cardiology Therapies $614
Slide 9: Income Statement Information
Income Statement Information Non-GAAP Reconciliation Three Months Ended December 31, 2023 (unaudited) Restructuring Acquisition/ and Litigation- Divestiture- Restructuring Related Investment Deferred Related -Related Net Net Portfolio Net EU MDR Tax GAAP Amortization Charges Charges Charges Losses I
Slide 10: Income Statement Information
Income Statement Information Non-GAAP Reconciliation Year Ended December 31, 2023 (unaudited) Restructuring Acquisition/ and Intangible Divestiture- Restructuring Litigation- Investment Asset Related -Related Net Related Net Portfolio EU MDR Deferred Tax GAAP Amortization Impairment Charges Charges
Slide 11: Working Capital & Cash Flow Metrics
Working Capital & Cash Flow Metrics Days Sales Outstanding (DSO) Adjusted Free Cash Flow* Dec Sept Jun Mar Dec Q4 Q4 FY2023 FY2022 2023 2023 2023 2023 2022 2023 2022 55 55 54 55 56 $886M $776M $2,428M $2,066M Days Inventory on Hand (DIOH) Capital Expenditures Dec Sept Jun Mar Dec Q4 Q4 FY2023 FY2022
Slide 12: Use of Non-GAAP Measures
Use of Non-GAAP Measures To supplement Boston Scientific’s consolidated financial statements presented on a GAAP basis, the Company discloses certain non- GAAP financial measures. These measures are not in accordance with generally accepted accounting principles in the United States. A reconciliatio
Slide 13: Appendix A Net Sales Detail
Appendix A Net Sales Detail 13 Q4 2023 Financial & Operational Highlights | January 31, 2024
Slide 14: A - Net Sales Detail - MedSurg
Appendix A - Net Sales Detail - MedSurg Three Months Ended December 31, 2023 and 2022 Year-over-Year Change Q4 Q4 Impact of Foreign (in millions) 2023 2022 Reported Basis Currency Operational Basis MEDSURG SEGMENT: ENDOSCOPY UNITED STATES $ 394 $ 349 12.9 % — % 12.9 % INTERNATIONAL 252 223 13.0 % (1
Slide 15: A - Net Sales Detail - Cardiovascular
Appendix A - Net Sales Detail - Cardiovascular Three Months Ended December 31, 2023 and 2022 Year-over-Year Change Q4 Q4 Impact of Foreign (in millions) 2023 2022 As Reported Basis Currency Operational Basis CARDIOVASCULAR SEGMENT: ICTx UNITED STATES $ 188 $ 176 7.1 % — % 7.1 % INTERNATIONAL 426 386
Slide 16: A - Net Sales Detail - MedSurg
Appendix A - Net Sales Detail - MedSurg Year Ended December 31, 2023 and 2022 Year-over-Year Change Impact of Foreign (in millions) FY 2023 FY 2022 As Reported Basis Currency Operational Basis MEDSURG SEGMENT: ENDOSCOPY UNITED STATES $ 1,511 $ 1,341 12.7 % — % 12.7 % INTERNATIONAL 970 880 10.2 % 1.4
Slide 17: A - Net Sales Detail - Cardiovascular
Appendix A - Net Sales Detail - Cardiovascular Year Ended December 31, 2023 and 2022 Year-over-Year Change Impact of As Reported Foreign Operational (in millions) FY 2023 FY 2022 Basis Currency Basis CARDIOVASCULAR SEGMENT: ICTx UNITED STATES $ 743 $ 744 (0.1) % — % (0.1) % INTERNATIONAL 1,674 1,485
Slide 18: A - Net Sales Information
Appendix A - Net Sales Information Net Sales Growth Year Ended December 31, 5-Year Average Total BSC Net Sales Growth 2023 2022 2021 2020 2019 Percentage change in net sales, as reported 12.3 % 6.7 % 19.9 % (7.7)% 9.3 % 8% Impact of foreign currency fluctuations 0.8 % 4.4 % (1.3)% (0.1)% 1.8 % Perce
Slide 19: Appendix B Additional Information - Statement of Operations
Appendix B Additional Information - Statement of Operations 19 Q4 2023 Financial & Operational Highlights | January 31, 2024
Slide 20: B - Statement of Operations
Appendix B - Statement of Operations Profitability Margins Three Months Ended Adjusted Gross Margin 12/31/2023 12/31/2022 Basis Points Change Gross Margin, as reported 69.2 % 68.8 % 40 Non-GAAP adjustments 1.2 % 1.7 % Gross Margin, adjusted 70.4 % 70.5 % (10) Three Months Ended Adjusted Operating Ma
Slide 21: Appendix C Additional Non-GAAP Reconciliations
Appendix C Additional Non-GAAP Reconciliations 21 Q4 2023 Financial & Operational Highlights | January 31, 2024
Slide 22: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations in millions Three Months Ended Year Ended Adjusted Free Cash Flow 12/31/2023 12/31/2022 12/31/2023 12/31/2022 Operating cash flow, reported $ 957 $ 807 $ 2,503 $ 1,526 Purchases of property, plant and equipment and internal use software (267) (212) (7
Slide 23: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Impact of Impact of Foreign Recent Q4 Q4 As Reported Currency Operational Acquisitions/ Organic (in millions) 2023 2022 Basis Fluctuations Basis Divestitures Basis ENDOSCOPY $ 645 $ 571 12.9 % (0.7) % 12.2 % (1.4) % 10.8 % UROLOGY 527 477 10.5 % (0.5)
Slide 24: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Impact of Impact of Foreign Recent FY FY As Reported Currency Operational Acquisitions/ Organic (in millions) 2023 2022 Basis Fluctuations Basis Divestitures Basis ENDOSCOPY $ 2,482 $ 2,221 11.7 % 0.6 % 12.3 % (1.2) % 11.1 % UROLOGY 1,964 1,773 10.8 %
Slide 25: Reconciliation of Debt to Adjusted EBITDA
Appendix C - Additional Non-GAAP Reconciliations 12 Months Ended Reconciliation of Debt to Adjusted EBITDA (in millions) Q1 2023 Q2 2023 Q3 2023 Q4 2023 12/31/2023 Net income (loss) $ 314 $ 270 $ 504 $ 504 $ 1,592 Income tax (benefit) expense 131 156 105 1 393 Interest expense 65 70 66 65 265 Intere
Slide 26: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Year Ended Adjusted Tax Rate 12/31/2023 12/31/2023 Tax Rate, as reported 0.3 % 19.8 % Non-GAAP adjustments 9.7 % (8.6) % Tax Rate, adjusted 10.0 % 11.2 % Discrete tax items 4.6 % 2.7 % Tax rate, operational 14.6 % 13.9 % Estimated T
Slide 27: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended December 31, 2022 Adjusted Operating Margin - by Segment MedSurg Cardiovascular Operating Margin, as reported 33.0 % 24.1 % Non-GAAP adjustments (1.1) % (1.1) % Operating Margin, adjusted 31.9 % 23.0 % Three Months Ended December, 3
Slide 28: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Year Ended Latin America Net Sales Growth 12/31/2023 12/31/2023 Net sales growth, as reported 27 % 23 % Impact of foreign currency fluctuations (10)% (6)% Net sales growth, operational 17 % 17 % Three Months Ended Electrophysiology
Slide 29: BSX: Acronym Reference Guide
BSX: Acronym Reference Guide 29 Q4 2023 Financial & Operational Highlights | January 31, 2024