Danaher Corporation · NYSE:DHR
Danaher — Q3 2024 Earnings Presentation
29 slides from Danaher's earnings presentation, Oct 22, 2024
Slide 1: Danaher Corporation Third Quarter 2024 Earnings Release
Danaher Corporation Third Quarter 2024 Earnings Release October 22, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward- looking" statements within the meaning of the federal securities laws. Th
Slide 3: Third Quarter 2024 Performance Summary
Third Quarter 2024 Performance Summary Adjusted Diluted Net Earnings Per Revenue Common Share from Continuing Operations +3.0% Core +0.5% Acquisitions +2.5% -0.6% FX Flat $1.72 $1.71 $5,624 $5,798 Q3 2023 Q3 2024 Q3 2023 Q3 2024 ($ millions) Throughout this presentation, with respect to revenue perf
Slide 4: Third Quarter 2024 Performance Summary
Third Quarter 2024 Performance Summary Adjusted Operating Profit Margin Free Cash Flow Performance -10 BPS +12.0% 27.6% 27.5% $1,226 $1,097 Q3 2023 Q3 2024 Q3 2023 Q3 2024 ($ millions) 4
Slide 5: Third Quarter 2024: Biotechnology
Third Quarter 2024: Biotechnology Revenue Adjusted Operating Profit Margin -0.5% -110 BPS Core Flat FX -0.5% $1,664 $1,653 37.9% 36.8% Q3 2023 Q3 2024 Q3 2023 Q3 2024 ($ millions) 5
Slide 6: Third Quarter 2024: Life Sciences
Third Quarter 2024: Life Sciences Revenue Adjusted Operating Profit Margin +4.5% -170 BPS Core -2.0% Acquisitions +7.0% FX -0.5% $1,782 24.4% $1,706 22.7% Q3 2023 Q3 2024 Q3 2023 Q3 2024 ($ millions) 6
Slide 7: Third Quarter 2024: Diagnostics
Third Quarter 2024: Diagnostics Revenue Adjusted Operating Profit Margin +5.0% +200 BPS Core +5.0% FX Flat $2,254 $2,363 28.1% 26.1% Q3 2023 Q3 2024 Q3 2023 Q3 2024 ($ millions) 7
Slide 8: Guidance
Guidance 8
Slide 9: Q&A
Q&A 9
Slide 10: Y....
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Slide 11: Reconciliation of GAAP to Non-GAAP Financial Measures and Supplemental Forward-Looking Information
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 27, 2024 AND SEPTEMBER 29, 2023
Slide 12: Table of Contents
TABLE OF CONTENTS Page 1 Sales Growth (Decline) by Segment and Core Sales Growth (Decline) by Segment 1 Forecasted Core Sales Decline and Adjusted Operating Profit Margin 2 Segment Sales, Operating Profit and Adjusted Operating Profit 3 Non-GAAP Profitability Measures 7 Other Non-GAAP Adjusted P&L M
Slide 13: Sales Growth (Decline) by Segment and Core Sales Growth (Decline) by Segment
DANAHER CORPORATION Sales Growth (Decline) by Segment and Core Sales Growth (Decline) by Segment % Change Three-Month Period Ended September 27, 2024 vs. Comparable 2023 Period Segments Total Company Biotechnology Life Sciences Diagnostics Total sales growth (decline) (GAAP) 3.0 % (0.5)% 4.5 % 5.0 %
Slide 14: Segment Sales, Operating Profit and Adjusted Operating Profit
DANAHER CORPORATION Segment Sales, Operating Profit and Adjusted Operating Profit ($ in millions) Three-Month Period Ended Nine-Month Period Ended September 27, 2024 September 29, 2023 September 27, 2024 September 29, 2023 Sales (GAAP) Biotechnology $ 1,653 $ 1,664 $ 4,890 $ 5,413 Life Sciences 1,78
Slide 15: Non-GAAP Profitability Measures
DANAHER CORPORATION Non-GAAP Profitability Measures ($ in millions) Three-Month Period Ended September 27, 2024 Biotechnology Life Sciences Diagnostics Other Total Company Net Earnings from Continuing Operations (GAAP) $ 818 Interest, Net 83 Other Nonoperating (Income) Expense (102) Income Taxes 159
Slide 16: Non-GAAP Profitability Measures
DANAHER CORPORATION Non-GAAP Profitability Measures ($ in millions) Three-Month Period Ended September 29, 2023 Biotechnology Life Sciences Diagnostics Other Total Company Net Earnings from Continuing Operations (GAAP) $ 940 Interest, Net (9) Other Nonoperating (Income) Expense 47 Income Taxes 207 O
Slide 17: Non-GAAP Profitability Measures
DANAHER CORPORATION Non-GAAP Profitability Measures ($ in millions) Nine-Month Period Ended September 27, 2024 Biotechnology Life Sciences Diagnostics Other Total Company Net Earnings from Continuing Operations (GAAP) $ 2,813 Interest, Net 114 Other Nonoperating (Income) Expense (7) Income Taxes 518
Slide 18: Non-GAAP Profitability Measures
DANAHER CORPORATION Non-GAAP Profitability Measures ($ in millions) Nine-Month Period Ended September 29, 2023 Biotechnology Life Sciences Diagnostics Other Total Company Net Earnings from Continuing Operations (GAAP) $ 3,100 Interest, Net 15 Other Nonoperating (Income) Expense 38 Income Taxes 712 O
Slide 19: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended September 27, 2024 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross
Slide 20: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended September 29, 2023 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross
Slide 21: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended September 27, 2024 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross
Slide 22: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended September 29, 2023 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross
Slide 23: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) A Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above): Three-Month Period
Slide 24: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) G In May 2020, the Company issued $1.72 billion in aggregate liquidation preference of 5.0% MCPS. Dividends on the MCPS were payable on a cumulative basis at an annual rate of 5.0% on the liquidation pref
Slide 25: Operating Profit Margins and Year-Over-Year Core Operating Profit Margin Changes
DANAHER CORPORATION Operating Profit Margins and Year-Over-Year Core Operating Profit Margin Changes Segments Total Company Biotechnology Life Sciences Diagnostics Three-Month Period Ended September 29, 2023 Operating Profit Margins from Continuing Operations (GAAP) 21.10 % 25.10 % 18.30 % 23.90 % T
Slide 26: Cash Flow and Free Cash Flow from Continuing Operations
DANAHER CORPORATION Cash Flow from Continuing Operations, Free Cash Flow from Continuing Operations, Operating Cash Flow from Continuing Operations to Net Earnings from Continuing Operations Ratio and Free Cash Flow from Continuing Operations to Net Earnings from Continuing Operations Conversion Rat
Slide 27: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. M
Slide 28: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures • With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to "restructuring charges” and “other adjustments”, we exclude the impact of businesses owned for less than one yea
Slide 29: Danaher
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