Becton, Dickinson and Company · NYSE:BDX

Becton, Dickinson and — Q3 FY2015 Earnings Presentation

31 slides from Becton, Dickinson and's earnings presentation, Aug 6, 2015

  1. Slide 1: Third Quarter Results Fiscal Year 2015

    Third Quarter Results Fiscal Year 2015 August 6, 2015

  2. Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures

    Forward-Looking Statements  These materials include forward-looking statements and it’s possible that actual results could differ from our expectations. Factors that could cause such differences appear in our third quarter earnings release and in our recent SEC filings. Non-GAAP Financial Measures

  3. Slide 3: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President 3

  4. Slide 4: Business Highlights

    Business Highlights  Pleased with third quarter results, which were ahead of our expectations  Reporting for the first time as a combined company marks an important milestone in BD’s history  Integration and synergy capture activities remain on track  Strong third quarter performance demonstrate

  5. Slide 5: Financial Update

    Financial Update Christopher Reidy Chief Financial Officer and Executive Vice President of Administration 5

  6. Slide 6: Financial Highlights

    FY 2015 Financial Highlights Third Quarter Year-to-Date Comparable Comparable As FXN FXN $ Growth % FXN $ Growth % FXN Adjusted Growth% Growth% Growth% Growth% Revenues $3,133 45.2% 55.6% 2.4% $7,235 15.9% 22.6% 5.4% EPS $2.05 17.1% 34.3% N/A $5.22 9.4% 20.8% N/A  Adjusted Q3 revenues grew 2.4% com

  7. Slide 7: Adjusted Revenues by Segment

    FY 2015 Adjusted Revenues by Segment Third Quarter Year-to-Date Comparable Comparable FXN FXN As Adjusted $ Growth % FXN $ Growth % FXN Growth% Growth% Growth% Growth% Total $3,133 45.2% 55.6% 2.4% $7,235 15.9% 22.6% 5.4% Revenues Medical 2,212 84.2% 96.5% 1.6% 4,389 29.8% 37.4% 5.6% Life Sciences 9

  8. Slide 8: Adjusted U.S. and International Revenues

    FY 2015 Adjusted U.S. and International Revenues Third Quarter Year-to-Date Comparable Comparable FXN FXN As Adjusted $ Growth % FXN $ Growth % FXN Growth% Growth% Growth% Growth% U.S. $1,706 95.9% 95.9% (1.5%) $3,450 35.5% 35.5% 4.0% Medical 1,291 175.8% 175.8% (2.8%) 2,196 63.4% 63.4% 3.9% Life Sc

  9. Slide 9: BDX Legacy Emerging Markets

    FY 2015 BDX Legacy Emerging Markets  BDX Legacy Emerging Markets financial highlights for FY 2015: Third FXN Growth % Year-to-Date Quarter Emerging Markets 11.0% 10.4% China 15.4% 17.8%  Q3 and YTD Emerging Markets represent 26% of BDX Legacy revenues Note: (1) Emerging markets include Eastern Eur

  10. Slide 10: Safety Revenues

    FY 2015 Safety Revenues Third Quarter Year-to-Date Comparable FXN Comparable FXN $ Growth % $ Growth % FXN Growth% FXN Growth% Growth% Growth% Total Safety $731 28.4% 37.1% 6.2% $1,855 11.9% 17.5% 7.3% By Geography U.S. 427 40.4% 40.4% 0.9% 1,030 13.6% 13.6% 2.2% International 304 14.7% 33.2% 13.5%

  11. Slide 11: Q3 FY 2015 Adjusted Gross Margin Change Year-Over-Year

    Q3 FY 2015 Adjusted Gross Margin Change Year-Over-Year % of Revenue (0.4%) 53% 52.4% 52.0% 0.5% 52% 0.1% $1,130 $1,629 Performance Continuous Improvement, Raw Materials +50 bps 51% Pension, Product Mix, Other -30 bps 50% Q3 FY 2014 Currency Performance Q3 FY 2015 11

  12. Slide 12: Q3 FY 2015 Adjusted Income Statement

    Q3 FY 2015 Adjusted Income Statement Favorable (Unfavorable) Adjusted Q3 Adjusted Q3 FXN % $ Change % Change FY 2015 FY 2014 Change Revenues $3,133 $2,157 $976 45.2% 55.6% Gross Profit 1,629 1,130 499 44.2% 56.1% % of Revenues 52.0% 52.4% SSG&A 761 528 (233) (44.2%) (53.0%) % of Revenues 24.3% 24.5%

  13. Slide 13: Guidance

    Financial Update Guidance 13

  14. Slide 14: Pro Forma Organic Revenue

    FY 2015 Pro Forma Organic Revenue FY 2015 FY 2015 Q3 Q3 YTD Q1 Act Q2 Act Q4 Est Organic Growth % (FXN) Act(1) Act Guidance CFN Stand-alone (2.2%) ~3% ~3.5% 9.9% 5.4% 3.9% Prior May Guidance (5 to 7%) 3 to 5% ~3% BDX Stand-alone 4.6% 5.3% 4.9% 4.9% ~5% ~5% Prior May Guidance ~5% Combined Organic 2.3

  15. Slide 15: EPS Guidance

    FY 2015 EPS Guidance BDX Legacy – Adjusted FY15 EPS Guidance $6.43-$6.50 $6.40-$6.47 (~0.5%) FX May Update Incremental Incremental FX August Update Performance Impact Total Company – Adjusted FY15 EPS Guidance +1% FXN (~0.5%) FX $7.08-$7.12 $7.00-$7.10 Accretion May Update Incremental Incremental FX

  16. Slide 16: FY 2015 Guidance

    FY 2015 Guidance Previous May Guidance August Guidance Update BDX BDX Total Company Total Company Stand-alone Stand-alone Total Revenues - FXN ~5% 28% to 29% ~5% 28.5% to 29% Total Revenues - Rptd (1.5%) 21% to 22% (2.0%) 21% to 21.5% Medical – FXN 4.5% to 5% 48% to 49% 4.5% to 5% 48.5% to 49% Life

  17. Slide 17: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President 17

  18. Slide 18: New Program and Product Launch Updates: Medical & Biosciences

    New Program and Product Launch Updates: Medical & Biosciences Medical Program/Product Planned Launch Date TM  Q1 FY 2015 FDA Clearance BD Intelliport Medication Management System  Q4 FY 2015 Launch (1Q Delay)  FY 2015 FDA Clearance BD Insulin Infusion Sets  FY 2016 Launch BD Simplist™ Prefilled

  19. Slide 19: New Program and Product Launch Updates: Diagnostic Systems

    New Program and Product Launch Updates: Diagnostic Systems Diagnostic Systems Program/Product Planned Launch Date BD MAX™  Launched EU  Enteric Parasite  Q4 FY 2015 U.S. (1Q delay)  Extended Enteric Bacterial  FY 2016 EU / FY 2017 U.S.  Enteric Viral  FY 2016 EU / FY 2017 U.S.  GC/CT and GC/

  20. Slide 20: Key Takeaways

    Key Takeaways  Pleased with our third quarter results  Consistent BD strength and better-than-expected CareFusion results  Organizational focus on integration and achieving synergies  Strong performance and full year outlook give us the confidence to raise our FY 2015 EPS guidance  Look forward

  21. Slide 21: Q&A

    Q&A BD, BD Logo and all other trademarks are the property of Becton, Dickinson and Company. 21

  22. Slide 22: BD Medical: Key Brand Mapping

    BD Medical: Key Brand Mapping* Business Unit Key Platforms1 Key Brands1 Medication Dispensing Technologies Pyxis®, Rowa® Management Infusion Systems Alaris® Solutions Other MedMined® Medical Surgical Systems BD PosiFlush®, BD Insyte® Autoguard® Medication and Procedural Infection Prevention ChloraPr

  23. Slide 23: Reportable Segments: New View for Second Half of FY2015

    Total Company Reportable Segments: New View for Second Half of FY2015 and Beyond Medication Management Solutions • CFN: Dispensing Technologies, Infusion Systems, Other Technology Solutions Medication and Procedural Solutions • BD: Medical Surgical Systems • CFN: Infection Prevention, Medical Specia

  24. Slide 24: Q3 FY 2015 & Q3 FY 2014 Adjustment Reconciliations

    Q3 FY 2015 & Q3 FY 2014 Adjustment Reconciliations (Unaudited; Amounts in millions, except per share data) Three Months Ended June 30, 2015 Selling and Research and Other Income Diluted Gross Administrative Development Acquisition- Operating Interest Income, Tax Net Earnings Revenues Profit Expense

  25. Slide 25: Q3 FY 2015 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

    Q3 FY 2015 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Three Months Ended June 30, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2015 2014 Growth Translation Growth Growth % Growth % Reported Diluted Earnings per Share $ 0.29 $ 1.65 $ (1.36) $ (0.2

  26. Slide 26: June YTD FY 2015 & FY 2014 Adjustment Reconciliations

    June YTD FY 2015 & FY 2014 Adjustment Reconciliations (Unaudited; Amounts in millions, except per share data) Nine Months Ended June 30, 2015 Selling and Research and Other Income Diluted Gross Administrative Development Acquisition- Operating Interest Income, Tax Net Earnings Revenues Profit Expens

  27. Slide 27: YTD June FY 2015 Reconciliation of Reported Diluted EPS to Adjusted

    YTD June FY 2015 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Nine Months Ended June 30, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2015 2014 Growth Translation Growth Growth % Growth % Reported Diluted Earnings per Share $ 2.52 $ 4.47 $ (1.95) $

  28. Slide 28: FY 2014 Total Year Adjustment Reconciliation

    FY 2014 Total Year Adjustment Reconciliation (Unaudited; Amounts in millions, except per share data) Twelve Months Ended September 30, 2014 Selling and Research and Other Income Diluted Gross Administrative Development Acquisition- Operating Interest Income, Tax Net Earnings Revenues Profit Expense

  29. Slide 29: Reconciliation - FX Impact Emerging Markets and China

    FY 2015 Reconciliation - FX Impact Emerging Markets and China (Unaudited; Amounts in millions) Three Months Ended June 30, % Change FY 2015 FY 2014 Reported FX Neutral FX Impact Total Emerging Markets Revenue $ 539 $ 530 1.6% 11.0% -9.4% Total Emerging Markets Safety Revenue 123 121 1.2% 13.5% -12.3

  30. Slide 30: Organic Growth Outlook Reconciliation

    FY 2015 Organic Growth Outlook Reconciliation Organic Revenues Growth Full Year Q1 Q2 Q3 Q3 YTD Q4 FY2015 (estimated) (estimated) CareFusion Revenues, Reported 16.1% 3.0% (5.2%) 3.9% ~0.0% ~3.0% FX Impact (1.4%) (2.4%) (3.2%) (2.4%) ~(3.5%) ~(2.5%) CareFusion Revenues, FXN 17.5% 5.4% (2.0%) 6.3% ~3.

  31. Slide 31: Outlook Reconciliation

    FY 2015 Outlook Reconciliation FY2015 OUTLOOK RECONCILIATION BD Standalone BD Including CareFusion Accretion Revenues FX Impact FXN Basis Revenues FX Impact FXN Basis Full Year FY2015 Estimated Growth on a Reported Basis ~(2.0%) ~(7.0%) ~5.0% 20.7% - 21.2% ~(7.5%) 28.2% - 28.7% Deferred Revenue Adju

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