Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — UBS Global Life Sciences Conference 2010
24 slides from Agilent Technologies's conference presentation, Sep 20, 2010
Slide 1: UBS Global Life Sciences Conference
AGILENT TECHNOLOGIES UBS GLOBAL LIFE SCIENCES CONFERENCE MIKE MCMULLEN SEPTEMBER 20, 2010 PRESIDENT AND GENERAL MANAGER GRAND HYATT NEW YORK CHEMICAL ANALYSIS GROUP
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements (including, without limitation, information and future guidance on our goals, priorities, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earnings, the con
Slide 3: The World's Premier Measurement Company
T H E W O R L D ’ S P R E M I E R M E A S U R E M E N T C O M PA N Y Electronic Chemical Life LTM Revenue* LTM Revenue* LTM Revenue* Measurement $2.7B Analysis $1.1B Sciences $1.0B Group Group Group FY10 Est’d Revenue: $2.7B FY10 Est’d Revenue: $1.2B FY10 Est’d Revenue: $1.5B Ron Nersesian Mike McMu
Slide 4: Global Scale and Scope
G LOBAL S CALE AND S COPE Global revenue and operational footprint offers unmatched coverage and hedges risk Revenue by Geography Q3’10 Headcount by Geography Q3’10 Agilent 18,500 Worldwide Employees 8,000 7,000 Asia Pacific Americas 6,000 37% 37% 5,000 Asia Pacific 4,000 Europe 3,000 Europe 26% 2,0
Slide 5: Q3 2010 Financial Highlights
Q3 2010 F INANCIAL HIGHLIGHTS Orders = $1.49B, +39% y/y (+30% organic) Revenues = $1.40B, +32% y/y (+24% organic): • LSG +28% y/y (+15% organic) • CAG +62% y/y (+13% organic) • EMG +24% y/y (+34% organic) Cash Flow from Operations = $90M ROIC* = 20% Operating Profit Margin* = 18% Q4’10 Guidance = Re
Slide 6: Overview – Electronic Measurement Market
O VERVIEW – E LECTRONIC M EASUREMENT M ARKET Market Size: $12B 20% of Agilent Growth: 4-5% Communications revenue Market Drivers • Economic recovery • Next Generation Communications Industrial , 20% of Agilent Comps. & Semi revenue • Global Security and Defense 2% of Agilent Key Competitors revenue
Slide 7: Overview – Life Sciences Market
OVERVIEW – L IFE S CIENCES M ARKET Pharma/Biotech Market Size: $19B (For Profit) Growth: 5-7% Growth Drivers • Academic and government investment • Life Science applications – “omics” 14% of Agilent revenue • Growth in generics and CROs • Therapeutic conversion to New Biological Academic and Governm
Slide 8: Life Sciences – New Products
L IFE S CIENCES – N EW P RODUCTS T ECHNOLOGY L EADERSHIP 1200 Infinity Liquid Chromatography Series • The 1200 Infinity Series includes the new Agilent 1220 Infinity LC, the new Agilent 1260 Infinity LC and the enhanced Agilent 1290 Infinity LC • 1290 offers the industry largest power range (1200bar
Slide 9: Life Sciences – New Portfolio
L I F E S C I E N C ES – N E W P O RT FO L I O E N A B L I N G N E W L I F E S C I E N C E S A P P L I C AT I O N S Technologies • NMR • MRI • X-Ray • Preparative LC • Dissolution Investing for Growth • Invest in customers via service, technical support and sales expansion • Drive RF technology from
Slide 10: Strategy to Win – Life Sciences
L I F E S C I E N C E S – S T R AT E G Y T O W I N Grow market share • Deliver the leading-edge application solutions customers demand • Drive emerging application trends • Leverage strong global presence to expand in developing geographies Strengthen technology base • Develop breakthrough products
Slide 11: Overview – Chemical Analysis Market
O V E R V I E W – C H E M I C A L A N A LY S I S M A R K E T Chemical & 11% of Agilent Market Size: $9B Energy Testing revenue Secular Growth: 5-6% Growth Drivers Environmental 9% of Agilent • Food safety regulations Testing revenue • China and developing countries • Lab productivity $0.3 B • Replac
Slide 12: Chemical Analysis – New Products
C H E M I C A L A N A LY S I S – N E W P R O D U C T S T ECHNOLOGY L EADERSHIP High-end Mass Spec – GC-QQQ and ICP-MS • GC-QQQ 7000B • ICP-MS – Model 7700 • Mass Hunter SW – Making MS operation easier from tuning to final report GC-QQQ 7000B 5975T LTM GC-MSD MassHunter Software • Industry’s first la
Slide 13: Chemical Analysis & Life Sciences – New Products
C H E M I C A L A N A LY S I S & L I F E S C I E N C E S – N E W P R O D U C T S T ECHNOLOGY L EADERSHIP Agilent MS Analyzed Vials • Vials and Closures analyzed by GC/MS and LC/MS • High-purity validated supplies ship with MS spectra MS Analyzed Vials LC Columns (SEC, Ion Exchange) for Biological Sa
Slide 14: Chemical Analysis – New Portfolio
CHEMICAL ANALYSIS – NEW PORTFOLIO BRINGING NEW CAPABILITIES TO OUR CUSTOMERS • Spectroscopy • Consumables 720 ICP-OES 490 Micro GC • Mass Spec • Vacuum Ion Pump Columns and Supplies GC-MS (Single/Triple Quad) VS Series MS He Leak Detector GC-MS (Ion Trap) All backed by our top-rated customer service
Slide 15: Strategy to Win – Chemical Analysis
S T R AT E G Y T O W I N – C H E M I C A L A N A LY S I S Integrate Varian Strengthen the core • Sustain technology leadership in GC, GC-MS, ICP-MS and Chromatography Chemistries • Strengthen industry-leading customer satisfaction and loyalty • Expand applications portfolio Outgrow the market • Chin
Slide 16: How We Win
H OW W E W IN • Market reach and customer trust • 6,000 sales and marketing employees supporting customers in over 100 countries • #1 customer loyalty ranking in every major product category* • 37% of Agilent revenue from Asia Pacific Q3’10 • Technology leadership • $600M/year, 11% Revenue invested
Slide 17: Appendix
APPENDIX Agilent Technologies
Slide 18: New EMG Business Model Increases Profits
N EW E M G B USINESS M ODEL I NCREASES P ROFITS Actions taken through recent cycle position EMG for superior financial performance compared with previous cycles. Improving business model through the cycle Previous This Cycle Future Cycle Similar Cycle Future PEAK FY00 FY08 FY - - Revenue $5.4B $3.6B
Slide 19: Varian Update
V A R I A N U P D AT E • Integration on track and going well - Integrated field service & support functions - Established 3 new product divisions dedicated to spectroscopy, research products, and vacuum technologies - Consolidated Varian and Agilent’s consumables businesses • Legal entities to be co
Slide 20: Cash and Capital Structure Update
C A S H A N D C A P I TA L S T R U C T U R E U P D AT E • Net cash & short term investments of $267M as of Q3’10 • Share re-purchase sufficient to maintain outstanding share count at ~ 350 million • $1.5B World Trade debt due January 2011. Will use $750M Senior Notes issued July 2010, plus cash on b
Slide 21: FY11 Scenarios
FY11 S CENARIOS* Y/Y Organic Y/Y Total Non GAAP Revenue Revenue Revenue Operating Non GAAP Fiscal Year B$ Growth Growth Margin EPS FY11 Scenario $ 6.2 9% 15% 18.7% $ 2.50 FY11 Scenario $ 5.9 4% 10% 16.9% $ 2.15 FY10 Guidance 8/16 $ 5.4 $1.94 - $1.95** *Scenarios do not represent forecast or guidance
Slide 22: Reconciliation from GAAP to Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP THREE MONTHS ENDED July 31, 2010 (Unaudited) Non-GAAP Adjustments Varian Acceleration of Restructuring Varian Acquisition Share-Based and Other Acquisition & Related Fair Compensation Related Costs Asset Intangible Transformational Litig
Slide 23: Revenue Reconciliation
AGILENT TECHNOLOGIES, INC. REVENUE RECONCILIATION (In millions) (Unaudited) PRELIMINARY Percent Q3'10 Q3'09 Inc/(Dec) GAAP Revenue $ 1,384 $ 1,057 31% Varian acquisition fair value adjustments 11 - Non-GAAP Revenue $ 1,395 $ 1,057 Less revenue from acquisition and divestitures included in segment re
Slide 24: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) PRELIMINARY Agilent Agilent Numerator: Q3'10 Q3'09 Non-GAAP income (loss) from operations $ 251 $ 81 Less: Taxes and Other (income)/expense 43 15 (a) (a) Segment return 208 66 Segment return annualized $ 832 $ 264 Denominato
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