Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q1 2025 Earnings Presentation
46 slides from Becton, Dickinson And's earnings presentation, Feb 6, 2025
Slide 1: Q1 FY25 Earnings and Intent to Separate Biosciences & Diagnostic Solutions
Q1 FY25 Earnings and Intent to Separate Biosciences & Diagnostic Solutions February 5, 2025 Advancing the TM world of health
Slide 2: Caution Concerning Forward-looking Statements
Caution Concerning Forward-looking Statements This presentation and accompanying webcast contain 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,
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 revenue growth rates on a currency-neutral and
Slide 4: Basis of Presentation
Basis of Presentation All dollar amounts presented are USD ($) in millions, unless otherwise indicated, except per share figures. FXN denotes currency-neutral basis. Revenue year-over-year change comparisons are on an FXN basis unless otherwise noted. Organic Revenue growth denotes foreign currency
Slide 5: Strong operating performance and meaningful progress advancing BD2025 strategy
Strong operating performance and meaningful progress advancing BD2025 strategy Announced the intent to separate BD’s Biosciences and Diagnostic Solutions business Separation expected to strengthen strategic focus, drive growth “We continue to transform our company through targeted investments an
Slide 6: Strong progress against our growth-oriented innovation pipeline
Strong progress against our growth-oriented innovation pipeline Revolutionizing hemodynamic Expanding our proprietary Transforming cervical cancer screening monitoring with smarter insights bioresorbable technologies into new with BD Onclarity HPV Assay and BD surgical applications COR Molecular Pla
Slide 7: Q1 FY25 Consolidated Performance Summary
Q1 FY25 Consolidated Performance Summary Revenue Adj. Operating Margin Adj. Diluted EPS Operating Cash Flow $5.2B 23.6% $3.43 $0.7B +9.6% FXN +340 bps YoY +28.0% YoY YTD +3.9% Organic Revenue by segment Revenue by geography BD Life Sciences United States $1,297M 60% BD Medical +0.5% FXN $2,615M (all
Slide 8: FY25 Guidance
FY25 Guidance February 5, 2025 November 7, 2024 Commentary Estimated Total Company Revenue ~$21.7B to $21.9B ~$21.9B to $22.1B • Segment growth expectations relative to BDX Adjusted Revenue Growth (FXN) 8.8% to 9.3% 8.8% to 9.3% organic growth range: Medical in-line, Life Organic Revenue Growth (FXN
Slide 9: Intent to Separate Biosciences & Diagnostic Solutions
Intent to Separate Biosciences & Diagnostic Solutions
Slide 10: Separating Biosciences & Diagnostic Solutions to enhance focus, drive growth and unlock value
Separating Biosciences & Diagnostic Solutions New to enhance focus, drive growth and unlock significant value Scaled, pure-play medical technology Represents natural next step in BD’s evolution, company with leading positions in large, building upon strong foundation and momentum of BD2025 attractiv
Slide 11: BD2025 strategy achievements set a strong foundation for our next phase
BD2025 strategy achievements set a strong foundation and momentum for our next phase of value creation Purposeful BD Excellence & Disciplined Capital Growth Quality Portfolio Shifts Simplification Deployment Strategy Systematically Since 2020, deployed Strong execution of Significant balance
Slide 12: Multiple platforms addressing higher-growth market opportunities
As part of BD2025 we built and have been scaling multiple platforms addressing higher-growth market opportunities Biosciences & New Diagnostic Solutions Immunology and GLP-1s & Biologics Advanced Patient Monitoring Pharmacy Automation Oncology Research Addressable Market1 $5B+ ~$5B ~$5B $3B+ Periphe
Slide 13: Accelerated financial profile through strong execution of BD2025 strategy
Accelerated financial profile through strong execution of BD2025 strategy On track to exceed all BD2025 targets Pre-BD20251 BD2025 Period2 November 2021 Analyst Day Target3 Base Revenue 3.8% 5.9% 5.5%+ CAGR Organic Growth4 Organic Growth Organic Growth 25%+ Original Increased to Base Adj. (120)bps 5
Slide 14: Separation positions both businesses to focus and win in attractive growth categories
Separation positions both businesses to focus and win in attractive growth categories and unlock significant value New Biosciences & Diagnostic Solutions Pure-play Life Sciences Tools & Diagnostics leader MedTech leader with scale and global reach across across attractive $22B+ addressable market gr
Slide 15: New BD: a scaled, pure-play MedTech leader
New A scaled, pure-play MedTech leader Revenue by Category1 ~$17.8B Please see Basis of Presentation on slide 4 and Appendix for non-GAAP reconciliations. Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 (1) BD information presented is for FY24. Connected Care reflects comparable FY24 revenue, adjuste
Slide 16: New BD leading positions in attractive end-markets with headroom for growth
New BD will have leading positions in attractive end-markets with significant headroom for growth ~$17.8B FY24 Annualized Revenue by Segment and Business Unit1 Medical Essentials Connected Care2 BioPharma Systems Interventional ~$6.2B ~$4.3B ~$2.3B ~$5.0B Medication Delivery Solutions Medication Man
Slide 17: Robust innovation in attractive high-growth categories
Robust innovation in attractive high-growth categories, fueling above market performance Medical Essentials Connected Care BioPharma Systems Interventional PureWick Flex PIVO Pro + BD PureWick Male Female External HemoSphere Alta Swan IQ and Nexiva with BD Effivax BD Neopak Catheter Smart Recovery F
Slide 18: Attractive growth potential and targeted financial profile for New BD
Attractive growth potential and targeted financial profile positions New BD for long- term value creation Deliver a durable and differentiated MSD growth profile supported by attractive end-markets and best-in-class recurring revenue New Continue to systematically increase WAMGR through disciplined
Slide 19: Biosciences & Diagnostic Solutions
Biosciences & Diagnostic Solutions Differentiated pure-play leader in Life Sciences Tools and Diagnostics Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 19
Slide 20: Biosciences & Diagnostic Solutions is a differentiated pure-play leader
Biosciences & Diagnostic Solutions is a differentiated pure-play leader in Life Sciences Tools and Diagnostics Revenue by Category1 Unparalleled Innovator Innovative with high-growth and differentiated portfolio potential in attractive categories across the business Leader across Strong R&D Signific
Slide 21: Global business operating in high-growth end-markets
Global business operating in high-growth end-markets with significant headroom for expansion ~$3.4B FY24 Revenue by Business Unit1 Biosciences Diagnostic Solutions ~$1.5B ~$1.8B Research Instruments and Reagents Single-Cell Multiomics Microbiology Point of Care Infectious Disease Clinical Instrument
Slide 22: Strong portfolio and innovation pipeline with significant growth opportunity
Strong portfolio and innovation pipeline with significant growth opportunity Biosciences Diagnostic Solutions Flow Cytometry Instruments Microbiology BD FACSDiscover S8 sorter successful launch to be followed by Launching the next generation BD BACTEC (BD BACTEC FXI), expected BD FACSDiscover A8
Slide 23: Separation details
Separation details Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 23
Slide 24: Details on proposed separation
Details on proposed separation BD is committed to exploring all opportunities to execute the separation in a manner that maximizes shareholder value Separation Separation Plan Plan Separation options include a Reverse Morris Trust, sale, spin-off or other transaction Expect to announce more sp
Slide 25: Separation is expected to unlock significant value for shareholders
Separation is expected to unlock significant value for shareholders Separation expected to unlock substantial value through enhanced focus, tailored investment and capital deployment New BD well-positioned as a MedTech leader with enhanced focus on high-growth markets Enables Biosciences & Diagnosti
Slide 26: Supplemental Information and Appendix
Supplemental Information and Appendix Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 26
Slide 27: Corporate Sustainability: Together We Advance
Corporate Sustainability: Together We Advance BD continues to receive recognition from external parties, being named a trusted company as well as a world’s best employer Named to the Wall Street Journal Named among the and Drucker Institute’s 250 Best-Managed World’s Most Admired Companies Companies
Slide 28: Q1 FY25 Segment Revenue and Key Highlights
Q1 FY25 Segment Revenue and Key Highlights BD Medical BD Life Sciences BD Interventional DS MDS $474M $1,124M SURG PI MMS +1.5% FXN $395M +6.8% FXN $2,615M $801M SM $1,297M +6.8% FXN $1,257M $473M +3.8% FXN +17.1% FXN +7.1% FXN +0.5% FXN +5.5% FXN $462M +5.0% Organic (all organic) (all organic) +3.3
Slide 29: Q1 FY25 Adjusted Income Statement
Q1 FY25 Adjusted Income Statement (As adjusted) $ in millions, except per share data Q1 FY25 Q1 FY24 Y/Y ∆ Revenues $5,168 $4,706 9.8%* Organic revenue growth 3.9% Gross Profit $2,834 $2,403 17.9% Gross margin 54.8% 51.1% 370 bps SSG&A $1,308 $1,189 10.1% % of revenues 25.3% 25.3% 0 bps R&D $305 $27
Slide 30: Q1 FY25 YTD Free Cash Flow
Q1 FY25 YTD Free Cash Flow • As expected, free cash flows lower due to the timing of planned one-time cash payments -20% • Continue to expect FCF conversion to accelerate to ~75% in FY25 • BD Excellence operating system continues to yield productivity gains and working capital $738 M $588 M initiati
Slide 31: Glossary
Glossary Identification & Antibiotic Susceptibility Adj. Adjusted ID/AST STI Sexually Transmitted Infection Testing APM Advanced Patient Monitoring IO Intraosseous SURG Surgery Transjugular Intrahepatic Portosystemic B Billion IV Intravenous TIPS Shunt Transitional Service Agreement/Logistics BDB Bi
Slide 32: Innovation pipeline
Our innovation pipeline - Over 100 new product launches expected by FY25(1) Recent innovation driving growth Near and mid-term catalysts Select pipeline products Next-Gen Swan IQ and BD Medical HemoSphere Alta Blister BD Neopak Smart Recovery ForeSight IQ Smart BD Libertas 5mL Inspection BD Alaris S
Slide 33: Supplemental Reconciliation – Revenues by Business Segments and Units
Supplemental Reconciliation – Revenues by Business Segments and Units For the Three Months Ended December 31, (Unaudited; $ in millions) (1) (1) Reflects Advanced Patient Monitoring Revenue for the period October 1, 2023 through December 31, 2023, giving effect as if Advanced Patient Monitoring had
Slide 34: Supplemental Reconciliation – Revenues by Geographic Regions
Supplemental Reconciliation – Revenues by Geographic Regions For the Three Months Ended December 31, (Unaudited; $ in millions) Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 34
Slide 35: Supplemental Reconciliation – Reported Revenue to Organic Revenue
Supplemental Reconciliation – Reported Revenue to Organic Revenue For the Three Months Ended December 31, (Unaudited; $ in millions) “NM” denotes that the percentage change is not meaningful. (1) Inorganic revenue adjustment is defined as the amount of incremental revenue attributable to acquisition
Slide 36: Supplemental Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS For the Three Months Ended December 31, (Unaudited) (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with integration and restructuring activ
Slide 37: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation For the Three Months Ended December 31, 2024 (Unaudited; $ in millions, except per share data) (1) Refers to footnotes on slide 36. Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 37
Slide 38: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation For the Three Months Ended December 31, 2023 (Unaudited; $ in millions, except per share data) (1) Refers to footnotes on slide 36. Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 38
Slide 39: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Change in Three Months Ended December 31, 2024 Compared With Three Months Ended December 31, 2023 (Unaudited; $ in millions, except per share data) Q1 FY25 EARNINGS PRESENTATION FEBRUARY 5, 2025 39
Slide 40: Supplemental Reconciliation – Net Leverage and Free Cash Flow
Supplemental Reconciliation – Net Leverage and Free Cash Flow For the Twelve Months Ended December 31, 2024 For the Three Months Ended December 31, 2024 (Unaudited; Amounts in millions) (Unaudited; Amounts in millions) Note: Amounts may not add due to rounding. (1) Represents costs associated with i
Slide 41: FY2025 Outlook Reconciliation
FY2025 Outlook Reconciliation Notes: - Revenue Adjustment Impact reflects the recognition of accruals resulting from developments relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to fiscal year 2024
Slide 42: FY2025 Outlook Reconciliation
FY2025 Outlook Reconciliation (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with integration and restructuring activities. (3) Represents transaction costs and financing impacts associated with the Advanced Patien
Slide 43: Supplemental Revenue Reconciliations
Supplemental Revenue Reconciliations For the Twelve Months Ended September 30, (Unaudited; $ in millions) (1) During the first quarter of fiscal year 2025, Life Sciences split its former Integrated Diagnostic Solutions organizational unit into two units to better align BD resources with the distinct
Slide 44: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation For the Twelve Months Ended September 30, (Unaudited; $ in millions) Revenue ($ in millions) 2025G 2024 2023 2022 2021(1) BDX Reported Revenues from Continuing Operations ~$21.7B - $21.9B $20,178 $19,372 $18,870 $19,131 Add: Revenue Adjustment Impact (2) — $67 —
Slide 45: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation For the Twelve Months Ended September 30, (Unaudited; $ in millions) Operating margin 2025G 2021 Adjusted operating profit $4,244 Adjusted operating margin % ~25.2% 22.2% (1) Less: COVID-19 only diagnostic testing and reinvestment impact ~260 bps Base adjusted op
Slide 46: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation For the Twelve Months Ended September 30, (Unaudited; $ in millions) (1) (2) (3) (4) (1) Please see slide 38 in the Q4 FY22 Earnings presentation posted on November 10, 2022 at investors.bd.com for reconciliations of GAAP to non-GAAP EPS. (2) Adjusted diluted ear
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