Slide 1: Agilent Technologies Q4'14 Results
Agilent Technologies Q4’14 Results (Reflects Life Sciences, Diagnostics and Applied Markets For EMG results and outlook, see investor.keysight.com) Page 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, the planned separation of our Electronic Measurement Group, revenues, demand, growth opportunities, customer service and innovation pl
Slide 3: Agilent Results Q4'14 and FY14
Agilent Results Q4’14 and FY14 Scale and leading technology across Analytical Laboratories and Clinical & Dx markets Q4’14 Financial Metrics FY14 Financial Metrics and Headcount • Orders: $1.14B, +5% y/y (+6% core)(1) • Orders: $4.2B, + 5% y/y (+4 core)(1) • Revenues: $1.04B, +3% y/y (+4% core)(1)(2
Slide 4: Growth in a $44B Market - Q4'14 Results by End Market
Growth in a $44B Market - Q4’14 Results by End Market Growth across all markets led by performance in the Analytical Laboratory Agilent Revenue by End Market (2) Leader in the Analytical Laboratory(1) 87% of Agilent revenue(2) Chemical Q4 Revenues: +3% y/y growth, +5% ex NMR & Energy Pharma & Biotec
Slide 5: Growth through Leadership in the Analytical Lab - Q4'14
Growth through Leadership in the Analytical Lab - Q4’14 Adding to the Portfolio - Building on Strength $34B Market Growing 3%-5%(1) INSTRUMENT PLATFORMS LC SERVICES 87% of Agilent Revenue(2) ICP-OES ATOMIC ABSORPTION Expanding the portfolio. Major product releases Q4’14: CONSUMABLES Separations: 129
Slide 6: Leveraging Analytical Lab Strength for Genomics Research and Cancer Diagnostics
Leveraging Analytical Lab Strength for Genomics Research and Cancer Diagnostics – Q4’14 highlights ANALYTICAL LAB ROUTINE CLINICAL & DX Dako Omnis LC, LC-MS Versatile, leading-edge Full solutions for analytical tools advanced diagnostics • Separations • H&E Staining • Spectroscopy • Advanced Stainin
Slide 7: FY15 Focus
FY15 Focus Creating shareholder value Grow organically at the high end of the market • Focus on sustaining share growth within the core Analytical Lab • Continue to bring innovative new offerings to the market • Expand lab-wide services & consumables with a differentiated customer experience • Lever
Slide 8: Financials and Capital Allocation
Agilent Technologies Financials and Capital Allocation Page 8
Slide 9: Q1'15 and FY15 Guidance and Forward-looking Considerations
Q1’15 and FY15 Guidance and Forward-looking Considerations FY15 Guidance • Revenue: $4.12B - $4.18B; growth at mid-point 4.9% core, 2.5% reported FY15 FY14 • EPS: $1.68 - $1.78, assumed diluted share count 340M Guidance at Actual Q115 Guidance mid-point • Revenue: $1.02B-$1.04B; growth at mid-point
Slide 10: FY15 Agilent Capital Allocation
FY15 Agilent Capital Allocation • Forecast FY15 Operating Cash Flow of $600M • Invest in the Business • FY15 Capital expenditures of $120M • Return $500M in capital to shareholders in FY15 • ~$135M in Dividends • ~$365M in opportunistic Share repurchases • Maintain investment grade rating Page 10
Slide 11: Reconciliations
Agilent Technologies Reconciliations Page 11
Slide 12: Reconciliations of Revenue Excluding the Impact of Currency Adjustments (Core)
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) PRELIMINARY Year-over-Year Currency GAAP Adjustments (a) Currency-Adjusted Year-over-Year Year-over-Year Revenue Q4'14 Q4'13 % Change Q4'14 Q4'14 Q4'13 % Change Life Sc
Slide 13: Life Sciences, Diagnostics and Applied Markets (LDA)
AGILENT TECHNOLOGIES, INC. LIFE SCIENCES, DIAGNOSTICS AND APPLIED MARKETS (LDA) (Unaudited) PRELIMINARY (In millions, except margins data) FY 2014 Q1 Q2 Q3 Q4 Total Orders $ 979 $ 1,030 $ 1,017 $ 1,145 $ 4,171 Net revenue $ 1,008 $ 988 $ 1,009 $ 1,043 $ 4,048 Gross margin % 54.1% 52.9% 53.2% 53.8% 5
Slide 14: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) PRELIMINARY LDA (New Agilent) Numerator: FY'14 Non-GAAP income from operations $ 763 ROIC calculation:(annualized current quarter segment return)/(average of the five most recent quarter-end balances of Segment Invested Capi