Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q1 2024 Earnings Presentation
38 slides from Becton, Dickinson And's earnings presentation, Feb 1, 2024
Slide 1: Q1 FY24 Earnings Presentation
Q1 FY24 Earnings Presentation February 1, 2024 Advancing the TM world of health
Slide 2: Caution Concerning Forward-Looking Statements and Non-GAAP Financial Measures
Caution Concerning Forward-Looking Statements This presentation and accompanying audio 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, ma
Slide 3: 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 denotes foreign currency neutra
Slide 4: Table of Contents
Executive Summary Table of Financial Performance Contents Guidance Innovation Appendix Q1 FY24 EARNINGS PRESENTATION FEBRUARY 1, 2024 4
Slide 5: Executive Summary
“Our first quarter results reflect our team’s strong execution of our BD 2025 Executive strategy. As we build on this momentum, advance our strong innovation pipeline and accelerate the adoption of our BD Summary Excellence operating system, we are well- positioned to create sustained value for all
Slide 6: Q1 results reflect continued strategic progress driving profitable growth and value creation
Q1 results reflect continued strategic progress driving profitable growth and value creation Executing in our core business while building leadership positions in higher-growth markets Continued to advance innovation pipeline with meaningful progress in technologies enabling shift to new care se
Slide 7: Bold choices and strong performance creating momentum behind our BD2025 strategy
Bold choices and strong performance creating momentum behind our BD2025 strategy BD2025 strategic pillars Grow Simplify Empower 1 2 3 4 5 Continued shift into Strong team Strengthened Disciplined and higher growth Expanded focused on long-term balanced capital markets through simplification executio
Slide 8: Accelerating growth profile through organic and inorganic investments in six growth platforms
Accelerating our growth profile through organic and inorganic investments and systematically scaling six key growth platforms with HSD to LDD growth Inorganic investments Growth platform BU WAMGR (since FY20) Organic innovation / investments PureWick™ UCC Mid-teens •PureWick™ Female •PureWick™ Male
Slide 9: Q1 innovation milestones: enabling the shift of care to new settings
Q1 innovation milestones: enabling the shift of care to new settings Incontinence Solution to New Capillary Blood Entering High-Growth Enhance Patient Experience Collection Solution Molecular Point of Care NextGen PureWick™ BD MiniDraw™ Capillary Blood BD Elience™ POC MDx Female External Catheter Co
Slide 10: ESG: Together We Advance - driving outcomes across four pillars of health
ESG: Together We Advance - driving outcomes across four pillars of health BD continues to receive recognition from external parties, being named to various lists for our commitment to environmental sustainability, as well as a best place to work for diversity, parents and families, women and veteran
Slide 11: Financial Performance
“Through strong execution, we exceeded both our margin and earnings goals in Q1. We are Financial well-positioned to achieve our increased fiscal 2024 guidance and deliver another year of double-digit free cash flow which increases Performance our capacity to support additional value- creating oppor
Slide 12: Q1 FY24 revenue summary – by segment and geography
Q1 FY24 revenue summary – by segment and geography Revenue by segment Revenue by geography United States BD Medical 58% $2,230M +2.4% FXN Total BD $4,706M +1.6% FXN +2.4% Organic FXN BD Life Sciences $1,288M (2.5%) FXN International 42% BD Interventional $1,188M +4.7% FXN +8.4% Organic FXN Q1 FY24 E
Slide 13: BD Medical: Execution of core strategy continues to drive solid underlying growth
BD Medical: Execution of core strategy continues to drive solid underlying growth Q1 FY24 Revenue BD Management Q1 Commentary MDS $1,052M Medication • Comprehensive Vascular Access Management strategy driving strong PS +0.2% FXN Delivery performance in Catheter Solutions Solutions • As expected, gro
Slide 14: BD Life Sciences: Continued focus on execution and innovation driving underlying growth
BD Life Sciences: Continued focus on execution and innovation driving underlying growth against a tough prior year comparison Q1 FY24 Revenue BD Management Q1 Commentary IDS $913M (5.5%) FXN Integrated • Decline primarily driven by comparison to prior-year respiratory season Diagnostic • Partially o
Slide 15: BD Interventional: Strong organic growth driven by Surgery and Urology and Critical Care
BD Interventional: Strong organic growth driven by strength in Surgery and Urology and Critical Care Q1 FY24 Revenue BD Management Q1 Commentary SURG $369M Surgery • Continued market adoption of Phasix™ hernia resorbable scaffold driving +1.2% FXN double-digit growth worldwide in Advanced Repair and
Slide 16: Q1 FY24 adjusted income statement
Q1 FY24 adjusted income statement (As adjusted) Reported FXN $ in millions, except per share data Q1 FY24 Q1 FY23 Y/Y ∆ Y/Y ∆ Revenues $4,706 $4,586 2.6% 1.6% Organic revenue growth 2.4% Gross Profit $2,403 $2,508 (4.2%) (1.8%) Gross margin 51.1% 54.7% (360) bps (180) bps SSG&A $1,189 $1,185 0.3% (0
Slide 17: Maintaining disciplined capital allocation policy
Maintaining disciplined capital allocation policy R&D / Capex Purposeful, efficient and balanced investments help >$1.1B <$1B Q1 YTD $ in billions Targeted R&D Targeted capex fuel our robust pipeline spend in FY24 spend in FY24 (1) R&D $0.3 Accelerating our strategy with meaningful capital deploymen
Slide 18: Guidance
Guidance Q1 FY24 EARNINGS PRESENTATION FEBRUARY 1, 2024 18
Slide 19: FY24 Guidance Summary
FY24 Guidance Summary February 1, 2024 November 9, 2023 Comments • Segment growth expectations relative to BDX organic growth range: Organic revenue growth 5.5% to 6.25% 5.25% to 6.25% • Medical in-line, Life Sciences below and Interventional above (FXN) Midpoint of 5.875% Midpoint of 5.75% • 2H org
Slide 20: Margin phasing considerations
Margin phasing considerations Strong leverage, simplification and cost mitigation initiatives, and lessening impact of Q1 margin headwinds gives us confidence in sequentially improving margins and delivering our full-year adjusted margin targets Q1 Q2 Q3 Q4 FY24 Simplification and cost mitigation in
Slide 21: Innovation
Innovation Q1 FY24 EARNINGS PRESENTATION FEBRUARY 1, 2024 21
Slide 22: Our innovation pipeline - new product launches expected by FY25
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 Parata Max® 2 BD Medical Next Gen Blister Central Fill Pyxis™ BD Alaris™ Site-Rite™ 9 BD Pyxis™ Inspection BD Intellivault™ EU N
Slide 23: BD Medical: making medication delivery safer, simpler and smarter
BD Medical: making medication delivery safer, simpler and smarter Category Size WAMGR Key Products / Pipeline Vascular Access PIVO™ Pro and BD Nexiva™ Site-Rite™ 9 BD Intelliport™ Management (MDS) ~$9B MSD System with NearPort™ Ultrasound IV Access Medication Mgmt. BD Alaris™ Solutions (MMS) Infusio
Slide 24: BD Life Sciences: from sample collection and discovery to diagnostics and beyond
BD Life Sciences: from sample collection and discovery to diagnostics and beyond Category Size WAMGR Key Products / Pipeline Single Cell Analysis Additional (BDB) FACSDiscover™ BD Rhapsody™ RealBlue™ & ~$3B MSD S8 Cell Sorter HT Xpress RealYellow™ Dyes Microbiology BD Kiestra™ Synapsys™ Next Gen (ID
Slide 25: BD Interventional: transforming solutions for chronic disease management
BD Interventional: transforming solutions for chronic disease management Category Size WAMGR Key Products / Pipeline Peripheral Vascular Low Profile Disease (PI) Rotarex™ Small Arterial Next Gen DCB ~$5B HSD Vessel StentGraft Oncology Multi-Modality (PI) BD Trek™ Vacuum ~$3B MSD Bone Biopsy Assisted
Slide 26: Appendix
Appendix Q1 FY24 EARNINGS PRESENTATION FEBRUARY 1, 2024 26
Slide 27: Glossary
Glossary Identification & Antibiotic Susceptibility ADDS Advanced Drug Delivery Systems ID/AST R&D Research and Development Testing B Billion IDS Integrated Diagnostics Solutions RCT Randomized Clinical Trial BDB Biosciences IV Intravenous RVP Respiratory Viral Panel BPS Basis Points IVD In Vitro Di
Slide 28: Supplemental Revenue Information – Revenues by Business Segments and Units
Supplemental Revenue Information – Revenues by Business Segments and Units For the Three Months Ended December 31, (Unaudited; $ in millions) Q1 FY24 EARNINGS PRESENTATION FEBRUARY 1, 2024 28
Slide 29: Supplemental Reconciliation – Reported Revenue to Organic Revenue
Supplemental Reconciliation – Reported Revenue to Organic Revenue For the Three Months Ended December 31, (Unaudited; $ in millions) (1) Inorganic revenue adjustment is defined as the amount of incremental revenue attributable to acquisitions and the revenue decline attributable to divestitures duri
Slide 30: 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 31: Supplemental Reconciliation – Three Months ended December 31, 2023
Supplemental Reconciliation For the Three Months ended December 31, 2023 (Unaudited; $ in millions, except per share data) Product, Income tax (A) Notes for Non- Reported Purchase Integration Restructuring Separation - European litigation, and TSA / LSA benefit of Adjusted GAAP (GAAP) accounting cos
Slide 32: Supplemental Reconciliation – Three Months ended December 31, 2022
Supplemental Reconciliation For the Three Months ended December 31, 2022 (Unaudited; $ in millions, except per share data) Product, Income tax (B) Notes for Non- Reported Purchase Integration Restructuring Separation - European litigation, and TSA / LSA benefit of Adjusted GAAP (GAAP) accounting cos
Slide 33: Supplemental Reconciliation – Change Between Periods
Supplemental Reconciliation Change in Three Months Ended December 31, 2023 Compared With Three Months Ended December 31, 2022 (Unaudited; $ in millions, except per share data) (A) (B) (C) = (A) - (B) (D) = (C) / (B) (E) (F) = (C) - (E) (G) = (F) / (B) Adjusted Adjusted Adjusted $ Adjusted % FX Trans
Slide 34: Supplemental Revenue Information – Revenues by Geographic Regions
Supplemental Revenue Information – Revenues by Geographic Regions For the Three Months Ended December 31, (Unaudited; $ in millions) D=(A-B)/B E=(A-B-C)/B A B C % Change 2023 2022 FX Impact Reported FXN United States $ 2,749 $ 2,730 — 0.7% 0.7% International $ 1,957 $ 1,856 $ 48 5.5% 2.9% Developed
Slide 35: Supplemental Reconciliation – Net Leverage
Supplemental Reconciliation – Net Leverage Last Twelve Months Ending December 31, 2023 (Unaudited; Amounts in millions) Reported GAAP net income from continuing operations $1,303 Adjusted for: Depreciation, amortization and other $2,267 Interest expense $461 Income taxes $237 Share-based compensatio
Slide 36: FY2024 Outlook Reconciliation
FY2024 Outlook Reconciliation Note: Inorganic Impact to Revenue Growth reflects the revenue decline attributable to divestitures for the first 12 months post-divestiture. Q1 FY24 EARNINGS PRESENTATION FEBRUARY 1, 2024 Please see Basis of Presentation on slide 3 and Appendix for Non-GAAP reconciliati
Slide 37: FY2024 Outlook Reconciliation
FY2024 Outlook Reconciliation (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with acquisition-related integration and restructuring activities, as well as costs associated with simplification and cost saving initia
Slide 38: Investor Relations contact information
Investor Relations contact information Greg Rodetis Adam Reiffe Nadia Goncalves SVP, Treasurer & Head of Sr. Director, Investor Relations Sr. Director, Investor Relations Investor Relations investor.relations@bd.com Advancing the TM world of health 38
Becton, Dickinson and Company — Q1 2024 Earnings Presentation on 6ix