Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Credit Suisse Technology Conference 2012
29 slides from Agilent Technologies's conference presentation, Nov 28, 2012
Slide 1: Agilent Technologies Credit Suisse Technology Conference
AGILENT TECHNOLOGIES CREDIT SUISSE TECHNOLOGY CONFERENCE GUY SÉNÉ NOVEMBER 28, 2012 PRESIDENT SCOTTSDALE, AZ ELECTRONIC MEASUREMENT 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 DIAGNOSTICS & MEASUREMENT ANALYSIS SCIENCES GENOMICS GROUP GROUP GROUP GROUP FY12 Revenue $3.3B FY12 Revenue $1.6B FY12 Revenue $1.6B FY12 Revenue $0.4B Operating Margin 23% Operating Margin 22% Operating M
Slide 4: Financial Highlights – Q4 FY12
FINANCIAL HIGHLIGHTS – Q4 FY12 Q4 FY12 Q4 core revenue growth -1% Actual Revenues slowed due to Revenue $1.77B macroeconomic pressures and government budget uncertainty Core Revenue Growth** -1% Operating margin continued to Operating Margin* 21.7% outperform the Agilent operating model on lower rev
Slide 5: Q4'12 Segment Revenue Distribution By Geography
Q 4 ’ 1 2 S EG M E N T R E V E N U E D I S T R I B U T I O N BY G EO G R A P H Y • Q4’12 YoY core* revenue growth: Americas 2%, Europe -2%, Asia Pacific -4% • Q4’12 percentage of Agilent revenues: U.S. 30%, China 17%, Japan 10% *Core revenue growth is adjusted for the effects of acquisitions and cur
Slide 6: End Market Performance – Q4'12
AGILENT E ND M ARKET P ERFORMANCE – Q 4’ 12 % of Agilent Market End Markets Q4’12 Revenue Size(1) Agilent Results Mixed results: ($1.77B) $54B Q4’12 vs. Q4’11 Up: Pharma & Biotech, Computers & Semi, Forensics Up 6% driven by technology Pharma & Biotech 14% $11B refresh and shifts to lower cost Down:
Slide 7: EMG Is The Industry Leader
E M G IS THE I NDUSTRY L EADER Markets Market Position $13B Market Size 4-5% Communications #1 Long Term Market Growth $3.3B, Flat YoY 2012 EMG Revenue 23% Aerospace #1 2012 EMG Operating Defense Margin Industrial, Computers, #1 Asia Pacific Americas Europe Semiconductors Geographic Mix Page 7
Slide 8: Agilent's Strategy To Win
A GILENT ’ S S TRATEGY TO W IN Continue to focus on four point strategy • Market reach and customer trust • Sales, service, and support reach into over 100 countries • #1 customer loyalty ranking in every major product category* • 41% of employees based in Asia • Technology leadership • 10% Revenue
Slide 9: Summary
S UMMARY Agilent is well positioned in an environment of global uncertainty • Strong balance sheet and cash flow • Track record of proactively responding to changes and tight control of costs and headcount • Gross margin improvements underway as part of worldwide order fulfillment strategy and deliv
Slide 10: Q&A
AGILENT TECHNOLOGIES Q&A ite Agilent Technologies
Slide 11: Appendix
APPENDIX Agilent Technologies
Slide 12: 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 • Cash of $2.4B. Net cash of $57M as of October 31, 2012 • Generated $485M cash from operations in Q4. Most cash held outside U.S. • Priority use of U.S. cash: - dividend - anti-dilutive share buyback • Larger acquisitions meeting strategic and
Slide 13: Market Outlook
M ARKET O UTLOOK Macro-Economic Environment • Advanced economies’ growth forecasted to be under 2% in 2013 • Emerging markets remain healthy, but slowing Measurement Markets • Throughout the cycle expect Measurement market growth of 1-2pp > GDP • Current secular growth drivers - mobility, human heal
Slide 14: Q4'12 Business Segment Financials
Q4’12 B USINESS S EGMENT F INANCIALS EMG LSG • Orders: $755M, -8% y/y (-7% core*) • Orders: $417M, -4% y/y (-1% core*) • Revenues: $816M, -5% y/y (-4% core*) • Revenues: $401M, flat y/y (+3% core*) • Operating Margin**: 23.2% of revenue, -120 • Operating Margin**: 17.7% of revenue, basis points y/y
Slide 15: Q1'13 And FY13 Guidance
Q 1 ’ 1 3 AND F Y 1 3 G UIDANCE* Q1’13 FY13 Revenue $1.68B - $1.70B $7.00B - $7.20B Revenue Growth 3% 4% (midpoint) Core Revenue** Growth -2% flat (mid-point) EPS $0.65 - $0.67 $2.80 - $3.10 EPS Growth (mid-point) -4% -5% *Presented on a non-GAAP basis; guidance as of November 19th, 2012 **Core reve
Slide 16: Agilent Operating Model
A G I L E N T O P E R AT I N G M O D E L * -1σ Midpoint +1σ Core Revenue Growth** 4% 8% 12% Expense Growth 3.5% 5% 6% YoY OM Incremental 20% 36% 43% What it is What it is not • Sustainable throughout a cycle. • Cookie-cutter approach. Businesses will • Goal to grow core revenue, under normal generat
Slide 17: Reconciliations
RECONCILIATIONS ite Agilent Technologies
Slide 18: Electronic Measurement Segment
AGILENT TECHNOLOGIES, INC. ELECTRONIC MEASUREMENT SEGMENT (Unaudited) PRELIMINARY (In millions, except margins and ROIC data) FY 2012 Q1 Q2 Q3 Q4 Total Orders $ 757 $ 957 $ 811 $ 755 $ 3,280 Net revenue $ 778 $ 876 $ 845 $ 816 $ 3,315 Gross margin % 57.8% 57.0% 55.9% 57.1% 56.9% Income from operatio
Slide 19: Chemical Analysis Segment
AGILENT TECHNOLOGIES, INC. CHEMICAL ANALYSIS SEGMENT (Unaudited) PRELIMINARY (In millions, except margins and ROIC data) FY 2012 Q1 Q2 Q3 Q4 Total Orders $ 403 $ 408 $ 372 $ 421 $ 1,604 Net revenue $ 396 $ 388 $ 381 $ 394 $ 1,559 Gross margin % 51.7% 50.8% 50.1% 52.9% 51.4% Income from operations $
Slide 20: Life Sciences Segment
AGILENT TECHNOLOGIES, INC. LIFE SCIENCES SEGMENT (Unaudited) PRELIMINARY (In millions, except margins and ROIC data) FY 2012 Q1 Q2 Q3 Q4 Total Orders $ 394 $ 410 $ 373 $ 417 $ 1,594 Net revenue $ 395 $ 395 $ 391 $ 401 $ 1,582 Gross margin % 50.9% 48.9% 50.5% 52.8% 50.8% Income from operations $ 58 $
Slide 21: Diagnostics And Genomics Segment
AGILENT TECHNOLOGIES, INC. DIAGNOSTICS AND GENOMICS SEGMENT (Unaudited) PRELIMINARY (In millions, except margins and ROIC data) FY 2012 Q1 Q2 Q3 Q4 Total Orders $ 69 $ 66 $ 106 $ 158 $ 399 Net revenue $ 66 $ 74 $ 106 $ 156 $ 402 Gross margin % 62.6% 65.3% 60.8% 63.4% 62.9% Income from operations $ 8
Slide 22: Reconciliation From GAAP To Non-GAAP Year Ended October 31, 2012
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP YEAR ENDED October 31, 2012 (Unaudited) PRELIMINARY NON-GAAP ADJUSTMENTS Acquisition & Agilent Asset Intangible Transformational Integration Foundation Adjustment (In millions, except per share amounts) GAAP Impairments Amortization Init
Slide 23: Reconciliation Of Organic Revenue Excluding The Impact Of Currency Adjustments
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ORGANIC REVENUE EXCLUDING THE IMPACT OF CURRENCY ADJUSTMENTS (In Millions) (Unaudited) PRELIMINARY Fiscal Year Percent 2012 2011 Inc/(Dec) GAAP Revenue $ 6,858 $ 6,615 Varian acquisition fair value adjustments - 11 Non-GAAP Revenue $ 6,858 $ 6,626 3.5% Le
Slide 24: Reconciliations Of Non-GAAP Revenue By Segment And By Region
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF NON-GAAP REVENUE BY SEGMENT AND NON-GAAP REVENUE BY REGION EXCLUDING THE IMPACT OF CURRENCY ADJUSTMENTS (In Millions) (Unaudited) PRELIMINARY Year-over-Year Currency (a) NON-GAAP Adjustments Currency-Adjusted Year-over-Year Year-over-Year Non-GAAP Revenu
Slide 25: Reconciliation Of Organic Revenue
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ORGANIC REVENUE (In Millions) (Unaudited) PRELIMINARY Percent Q4'12 Q4'11 Inc/(Dec) GAAP Revenue $ 1,767 $ 1,728 Varian acquisition fair value adjustments - 3 Non-GAAP Revenue $ 1,767 $ 1,731 2% Less revenue from acquisition and divestitures included in s
Slide 26: Reconciliations Of Non-GAAP Organic Revenue By Segment And By Region
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF NON-GAAP ORGANIC REVENUE BY SEGMENT AND NON-GAAP ORGANIC REVENUE BY REGION EXCLUDING THE IMPACT OF CURRENCY ADJUSTMENTS (In Millions) (Unaudited) PRELIMINARY Year-over-Year Currency (a) NON-GAAP ORGANIC Adjustments Currency-Adjusted Year-over-Year Year-o
Slide 27: Reconciliation From GAAP To Non-GAAP Three Months Ended October 31, 2012
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP THREE MONTHS ENDED October 31, 2012 (Unaudited) PRELIMINARY NON-GAAP ADJUSTMENTS Acquisition & Agilent Asset Intangible Transformational Integration Foundation Adjustment (In millions, except per share amounts) GAAP Impairments Amortizat
Slide 28: Reconciliation Of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) PRELIMINARY LSG CAG EMG DGG AGILENT LSG CAG EMG DGG AGILENT LSG CAG EMG DGG AGILENT Numerator: Q4'12 Q4'12 Q4'12 Q4'12 Q4'12 Q4'11 Q4'11 Q4'11 Q4'11 Q4'11 Q3'12 Q3'12 Q3'12 Q3'12 Q3'12 Non-GAAP income from operations $ 71 $
Slide 29: Net Cash
AGILENT TECHNOLOGIES, INC. NET CASH (In millions) (Unaudited) PRELIMINARY Q4'12 Q4'11 Q3'12 Cash and cash equivalents $ 2,351 $ 3,527 $ 1,923 Restricted cash and cash equivalents — — — Short-term debt, par value (250) (253) (500) Senior notes, par value (2,000) (1,850) (1,600) Other debt (44) — (42)
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