Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q1 2023 Earnings Presentation
40 slides from Becton, Dickinson And's earnings presentation, Feb 2, 2023
Slide 1: Q1 FY23 Earnings Presentation
Q1 FY23 Earnings Presentation February 2, 2023 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 contains 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, margins, earnings per share, lev
Slide 3: Basis of Presentation
Basis of Presentation All dollar amounts presented are USD ($) in millions, unless otherwise indicated, except per share figures. Continuing Operations - On April 1, 2022, the Company completed the spin-off of its Diabetes Care business as a separate publicly traded company named Embecta Corp. (“Emb
Slide 4: Table of Contents
Executive Summary Table of Innovation Contents Financial Performance Guidance Appendix Q1 FY23 EARNINGS PRESENTATION FEBRUARY 2, 2023 4
Slide 5: Executive Summary
“Our results are a testament to the continued, relentless focus by our team Executive of talented associates who are delivering BD products and solutions that are enabling our customers to provide high- Summary quality, cost-effective care to patients around the world.” Tom Polen BD Chairman, CEO an
Slide 6: Strong performance is creating momentum behind our BD2025 strategy
Strong performance is creating momentum behind our BD2025 strategy Accelerating durable, profitable growth in attractive end markets Q1 FY23 EARNINGS PRESENTATION FEBRUARY 2, 2023 6
Slide 7: Q1 results reflect continued momentum of BD2025 strategy 'in action'
Q1 results reflect continued momentum of BD2025 strategy ‘in action’ ✓ Providing category-leading products and transformative solutions at the forefront of modern healthcare ✓ Delivered another quarter of consistent, durable performance driven by durable core and continued shift into higher-growth e
Slide 8: ESG: Together We Advance - driving outcomes across four pillars of health
ESG: Together We Advance - driving outcomes across four pillars of health Named among the top 25% of Newsweek’s list of America’s Most Responsible Companies Q1 FY23 EARNINGS PRESENTATION FEBRUARY 2, 2023 8
Slide 9: Innovation
Innovation Q1 FY23 EARNINGS PRESENTATION FEBRUARY 2, 2023 9
Slide 10: Our innovation-driven growth strategy is on track
Our innovation-driven growth strategy is on track Robust innovation pipeline fueling >100 expected product launches through FY25 BD Medical BD Life Sciences BD Interventional BD PosiFlush™ SafeScrub: BD MAX™ Respiratory Viral Venovo™ Venous Stent China: • Launched Q1 FY23 Panel (RVP): • Launched Q1
Slide 11: Our innovation pipeline is progressing in support of BD2025 strategy
Our innovation pipeline is progressing in support of BD2025 strategy Continued strong achievement of critical milestones and launches BD Medical BD Life Sciences BD Interventional PowerMe™ Midline Catheter: BD MiniDraw™ capillary blood Multi-Modality Vacuum assisted • NMPA clearance; expected China
Slide 12: BD Medical: making medication delivery safer, simpler and smarter
BD Medical: making medication delivery safer, simpler and smarter Category Size WAMGR Key Products: FY22 FY24+ Vascular Access China BD Posiflush™ BD Intelliport™ Management (MDS) ~$9B ~4%+ Midline System SafeScrub PowerMe™ Medication Mgmt. EU Next Gen U.S. Next Pyxis™ Solutions (MMS) ~$5B ~4% Infus
Slide 13: 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: FY22 FY24+ Single Cell Analysis RealBlue™ & (BDB) FACSDiscover™ FACSDuet™ ~$3B ~5.5% S8 Cell Sorter Premium RealYellow™ Dyes Microbiology BD Kiestra™ Synapsys™ Next Gen (IDS) ~$4B ~5% I
Slide 14: BD Interventional: transforming solutions for chronic disease management
BD Interventional: transforming solutions for chronic disease management Category Size WAMGR Key Products: FY22 FY24+ Peripheral Vascular Low Profile Disease (PI) Rotarex™ Small Arterial Next Gen DCB ~$5B ~6% Vessel StentGraft Oncology Multi-Modality (PI) Vacuum ~$3B ~6% Bone Biopsy Assisted IO Bead
Slide 15: Financial Performance
“We delivered another quarter of strong performance in Q1, which demonstrates Financial our consistent, reliable, durable growth profile and our BD 2025 strategy continuing to progress as planned.” Performance Christopher DelOrefice BD EVP and CFO Q1 FY23 EARNINGS PRESENTATION FEBRUARY 2, 2023 15
Slide 16: Q1 FY23 revenue summary – by segment and geography
Q1 FY23 revenue summary – by segment and geography Revenue by segment Revenue by geography Total BD United States BD Medical 60% $2,154M +6.1% FXN $4,586M +1.7% FXN Base revenues BD Life Sciences $1,302M $4,554M (7.3%) FXN +5.2% FXN Base revenues International +3.0% Organic FXN $1,270M 40% +3.3% FXN
Slide 17: BD Medical: Execution of our strategy continues to drive positive results
BD Medical: Execution of our strategy continues to drive positive results Q1 FY23 BD Management Q1 Commentary MDS • Decline driven by COVID dynamics including prior year vaccination $1,039M demand and recent restrictions in China as well as planned strategic (1.0%) FXN Medication portfolio exits Del
Slide 18: BD Life Sciences: Strong focus on execution driving growth
BD Life Sciences: Strong focus on execution driving growth despite comparison from prior year licensing fee revenue Q1 FY23 BD Management Q1 Commentary BDB • Underlying growth driven by strong demand for our respiratory testing $349M portfolio which was partly aided by the timing of dealer orders, s
Slide 19: BD Interventional: Continued strong underlying growth
BD Interventional: Continued strong underlying growth Q1 FY23 BD Management Q1 Commentary PI • Advanced Repair and Reconstruction delivered strong performance $433M worldwide, driven by continued strong market adoption of Phasix™ hernia +10.8% FXN resorbable scaffold Surgery • Double-digit growth gl
Slide 20: Q1 results reflect consistent execution and a strong start to the fiscal year
Q1 results reflect consistent execution and a strong start to the fiscal year Reported FXN Y/Y ∆ Y/Y ∆ P&L Highlights Q1 FY23 Q1 FY22 Revenues $4,586 $4,718 (2.8%) 1.7% Base revenue $4,554 $4,534 0.4% 5.2% Revenue: Strong base growth of 5.2% FXN driven by execution Gross Profit $2,508 $2,588 (3.1%)
Slide 21: Maintaining disciplined capital allocation policy
Maintaining disciplined capital allocation policy Purposeful and balanced investments help fuel our robust pipeline R&D / Capex ~6% ~60% ~$1B ~80% $ in billions Q1 YTD R&D target R&D spend Targeted annual Strategically (4) as a % of directed towards capex spend deployed on value R&D $0.3 sales Trans
Slide 22: Guidance
Guidance Q1 FY23 EARNINGS PRESENTATION FEBRUARY 2, 2023 22
Slide 23: FY23 Guidance Summary
FY23 Guidance Summary November 10, February 2, 2023 2022 Comments • Includes ~100 bps from inorganic M&A offset by ~100 bps impact of strategic portfolio exits • Only includes Alaris capital shipments related to medical necessity; in-line with FY22 5.75% to 6.75% 5.25% to 6.25% Base revenue growth (
Slide 24: Raising base revenue guidance on Q1 performance
Raising base revenue guidance on Q1 performance 50 bps base revenue growth increase h ~250 bps (or ~$480M) $19.1B to $19.3B h ~50 bps FY23 base (or ~$90M) revenue growth: 5.75% to $18.6B to $18.8B 6.75% i ~($75M) FY23 base (expect COVID-only revenue testing revenues of growth: ~$50M to $100M) 5.25%
Slide 25: Increasing FY23 adjusted EPS guidance
Increasing FY23 adjusted EPS guidance Expect strong full-year double-digit base earnings growth Strong base business h~190 bps $12.07 - $12.32 performance offset by decline in higher margin COVID-only testing ~9% to 11% FXN $11.85 to $12.10 EPS growth ~9% to 11% Full-year implied FXN base business E
Slide 26: Key Considerations
Key Considerations P&L Line item Key Considerations • Remainder of year base revenue growth rate expected to be fairly ratable Revenue • Similar to FY22, COVID-only testing expected to be more weighted to 1H • Based on current spot rates (EUR = 1.08 USD), ~90% of full-year FX headwind expected in 1H
Slide 27: Appendix
Appendix Q1 FY23 EARNINGS PRESENTATION FEBRUARY 2, 2023 27
Slide 28: Glossary
Glossary Acronym Defined Term Acronym Defined Term B Billion MMS Medication Management Solutions BDB Biosciences M Million BPS Basis Points NMPA National Medical Products Administration Capex Capital Expenditures OCF Operating Cash Flow CT/GC/TV2 Chlamydia/Gonorrhea/Trichomonas OUS Outside United St
Slide 29: Supplemental Revenue Information
Supplemental Revenue Information Quarterly Reconciliation of Reported Revenue Change to Base Revenue Change For the Three Months Ended December 31, (Unaudited; $ in millions) A B C D=A-B E=A-B-C F=(A-B)/B G=(A-B-C)/B Reported % Change % Change 2022 2021 FX Impact FXN Change Change Reported FXN TOTAL
Slide 30: Supplemental Revenue Information - Organic Growth
Supplemental Revenue Information - Organic Growth Quarterly Reconciliation of Reported Revenue Change to Base Organic Revenue Change For the Three Months Ended December 31, (Unaudited; $ in millions) A B C D=A-B E=A-B-C F=(A-B)/B G=(A-B-C)/B Reported % Change % Change 2022 2021 FX Impact FXN Change
Slide 31: Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Quarterly Reconciliation of Reported Diluted EPS from Continuing Operations to Adjusted Diluted EPS from Continuing Operations For the Three Months ended December 31, Foreign Foreign Foreign Currency Currency Currenc
Slide 32: Supplemental Non-GAAP Reconciliation 1 of 3
Supplemental Non-GAAP Reconciliation 1 of 3 Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Three Months ended December 31, 2022 Product, Notes for litigation, Income tax (A) Non-GAAP Reported Purchase Integration Restructur
Slide 33: Supplemental Non-GAAP Reconciliation 2 of 3
Supplemental Non-GAAP Reconciliation 2 of 3 Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Three Months ended December 31, 2021 Product, Notes for litigation, Income tax (B) Non-GAAP Reported Purchase Integration Restructur
Slide 34: Supplemental Non-GAAP Reconciliation 3 of 3
Supplemental Non-GAAP Reconciliation 3 of 3 Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations Change in Three Months Ended December 31, 2022 Compared With Three Months Ended December 31, 2021 (A) (B) (C) = (A) - (B) (D) = (C) / (B) (E
Slide 35: Revenues by Business Segments and Units
Supplemental Non-GAAP Reconciliation – Revenues by Business Segments and Units For the Three Months ended December 31, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2022 2021 FX Impact Reported FXN BD MEDICAL Medication Delivery Solutions (1) $1,039 $1,096 ($46) (5.2%) (1.0%) Medic
Slide 36: Revenues by Geographic Regions
Supplemental Non-GAAP Reconciliation – Revenues by Geographic Regions For the Three Months ended December 31, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2022 2021 FX Impact Reported FXN United States $2,730 $2,703 $0 1.0% 1.0% International $1,856 $2,016 ($215) (7.9%) 2.7% Devel
Slide 37: Supplemental Non-GAAP Reconciliation – Net Leverage
Supplemental Non-GAAP Reconciliation – Net Leverage Reconciliation of Net Income from Continuing Operations to Non-GAAP Adjusted EBITDA from Continuing Operations – Unaudited; $ in millions For the Twelve Months ended December 31, 2022 Reported GAAP net income from continuing operations $1,576 Adjus
Slide 38: FY2023 Outlook Reconciliation
Supplemental Non-GAAP Reconciliation – FY2023 Outlook Reconciliation Full Year FY2022 Full Year FY2023 Outlook ($ in millions) FX Neutral % Change Reported Revenues BDX Reported Revenues from Continuing Operations $18,870 Less: COVID-19-only Diagnostic Testing Revenues $511 Base Business Revenues fr
Slide 39: FY2023 Outlook Reconciliation
Supplemental Non-GAAP Reconciliation – FY2023 Outlook Reconciliation Full Year FY2023 Outlook Full Year FY2022 from Continuing Operations Total Company Reported Diluted Earnings per Share $5.38 (1) Purchase accounting adjustments ($1.431 billion pre-tax) $4.98 (2) Integration costs ($68 million pre-
Slide 40: Investor Relations contact information
Investor Relations contact information Francesca DeMartino Adam Reiffe Nadia Goncalves SVP, Investor Relations Sr. Director, Investor Relations Sr. Director, Investor Relations investor.relations@bd.com Advancing the TM world of health 40
Becton, Dickinson and Company — Q1 2023 Earnings Presentation on 6ix