Becton, Dickinson and Company · NYSE:BDX

Becton, Dickinson and — Q1 FY2014 Earnings Presentation

26 slides from Becton, Dickinson and's earnings presentation, Feb 4, 2014

  1. Slide 1: First Quarter Results Fiscal Year 2014

    First Quarter Results Fiscal Year 2014 February 4, 2014

  2. Slide 2: Forward-Looking Statements

    Forward-Looking Statements  These materials include forward-looking statements and it’s possible that actual results could differ from our expectations. Factors that could cause such differences appear in our first quarter earnings release and in our recent SEC filings. Non-GAAP Financial Measures

  3. Slide 3: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President 3

  4. Slide 4: Business Highlights

    Business Highlights  Pleased with our strong first quarter results  Strength across all three segments  Continued strong growth in emerging markets and safety- engineered products  Long-term strategy of investing and innovating for growth continues to deliver results  Raising the bottom end of

  5. Slide 5: FY 2014 Financial Highlights

    FY 2014 Financial Highlights First Quarter FXN $ Growth % Growth % Revenues $2,015 6.0% 6.7% EPS $1.37 1.5% 8.1% Adjusted EPS, Ex. $1.42 5.2% 11.9% Med Device Tax 5

  6. Slide 6: Financial Update

    Financial Update Christopher Reidy Chief Financial Officer and Executive Vice President of Administration 6

  7. Slide 7: Q1 FY 2014 Financial Highlights

    Q1 FY 2014 Financial Highlights  Strong first quarter performance, ahead of expectations  Acquisitions contributed 80 basis points to revenue growth  Results partially aided by a timing of orders, an early flu season and improved pricing in the quarter  Gross margin impacted unfavorably from for

  8. Slide 8: FY 2014 Revenues by Segment

    FY 2014 Revenues by Segment First Quarter Reported FXN $ Growth % Growth % Total Revenues $2,015 6.0% 6.7% Medical 1,064 8.2% 8.6% Diagnostics 672 3.1% 4.2% Biosciences 279 5.4% 5.7% 8

  9. Slide 9: FY 2014 U.S. and International Revenues

    FY 2014 U.S. and International Revenues First Quarter Reported FXN $ Growth % Growth % U.S. $849 2.3% 2.3% Medical 441 3.8% 3.8% Diagnostics 321 0.1% 0.1% Biosciences 87 3.3% 3.3% International $1,166 8.9% 10.0% Medical 622 11.5% 12.2% Diagnostics 351 6.0% 8.1% Biosciences 192 6.3% 6.8% 9

  10. Slide 10: Emerging Markets

    Emerging Markets  Emerging Markets financial highlights for FY 2014: FXN Growth % % of BD Revenues Q1 13.4% 25.0%  Strong double-digit growth in key markets and platforms (FXN)  China 25.5%  Emerging Markets Safety 15.0%  Strategic investments continue to deliver robust emerging market growth N

  11. Slide 11: FY 2014 Safety Revenues

    FY 2014 Safety Revenues First Quarter Reported FXN $ Growth % Growth % Total Safety $557 9.0% 9.8% By Geography: U.S. 315 8.1% 8.1% International 242 10.1% 12.0% By Segment: Medical 285 13.0% 14.0% Diagnostics 272 5.0% 5.7% 11

  12. Slide 12: Q1 FY 2014 Gross Margin Change

    Q1 FY 2014 Gross Margin Change Year-Over-Year -1.6% -1.3% 53% 52% -0.3% % of Revenue 51% Performance: 52.9% ReLoCo, Price, Pension +80 bps 50% Raw Materials, Acquisitions, 51.3% Start-up Costs, Other -110 bps 49% Q1 FY 2013 Currency Performance Q1 FY 2014 $1,006 $1,035 12

  13. Slide 13: Q1 FY 2014 Income Statement

    Q1 FY 2014 Income Statement Favorable (Unfavorable) Q1 Q1 FXN % FY 2014 FY 2013 $ Change % Change Change Revenues $2,015 $1,900 $115 6.0% 6.7% Gross Profit 1,035 1,006 28 2.8% 5.9% % of Revenues 51.3% 52.9% Ex-MDT SSG&A 531 496 (35) -7.1% -7.9% -5.0% % of Revenues 26.4% 26.1% R&D 126 118 (8) -6.4% -

  14. Slide 14: FY 2014 Guidance

    FY 2014 Guidance November February Growth % (FXN)* Guidance Guidance Total BD Revenues 4.0% to 5.0% 4.5% to 5.0% Medical 4.5% to 5.5% 5.0% to 5.5% Diagnostics 3.5% to 4.5% 3.5% to 4.5% Biosciences 3.0% to 4.0% ~4% EPS Growth 8.5% to 9.5% 9.0% to 9.5% EPS $6.16 to $6.22 $6.19 to $6.22 Adjusted EPS Gr

  15. Slide 15: Business Overview

    Business Overview Vincent A. Forlenza Chairman, CEO and President 15

  16. Slide 16: Program and Product Launch Updates

    Program and Product Launch Updates Medical Program/Product Planned Launch Date TM BD Simplist Prefilled Injectables • Morphine Sulfate Injection, USP New • FDA Approved • Q2/Q3 FY 2014 Product Launch • 4 additional drugs filed for FDA approval • FY 2014 / FY 2015 Biosciences Program/Product Planned

  17. Slide 17: Program and Product Launch Updates

    Program and Product Launch Updates Diagnostics Program/Product Planned Launch Date BD Veritor System TM • Strep A • Q2 FY 2014 WW BD MAX TM • Staph SR New • Launched U.S. (1 Q Early) • Enteric Bacteria • Q3 FY 2014 U.S. • GC/CT and GC/CT/Trich • FY 2015 BD Totalys Front-End Automation TM • Q2 FY 201

  18. Slide 18: Key Takeaways

    Key Takeaways  Strong start to FY 2014 with solid underlying growth  Long-term strategy continues to deliver results and a higher quality of earnings  New products  Tuck-in acquisitions  Geographic expansion  Safety-engineered products  Focus on complete solutions to meet customer needs and i

  19. Slide 19: Q&A

    Q&A BD, BD Logo and all other trademarks are the property of Becton, Dickinson and Company. 19

  20. Slide 20: Q1 FY 2014 Revenue Growth

    Q1 FY 2014 Revenue Growth Year-Over-Year -0.7% 6.0% -0.7% -1.0% 2,100 -0.7% -1.0% 2,000 6.7% $ in Millions 1,900 1,800 $1,900 $1,922 $2,015 $1,991 1,700 1,600 Q1 FY 2013 Performance Currency Q1 FY 2014 20

  21. Slide 21: Q1 FY 2014 Reconciliation - FX Impact

    Q1 FY 2014 Reconciliation - FX Impact (Unaudited; Amounts in millions, except per share data) Three Months Ended December 31, Reported Foreign Reported Reported Growth Currency FXN FXN FY 2014 FY 2013 $ Translation Change Growth REVENUES $ 2,015 $ 1,900 $ 115 $ (12) $ 126 6.7% Gross Profit 1,035 1,0

  22. Slide 22: Q1 FY 2014 Reconciliation of Non-GAAP Financial Measures

    Q1 FY 2014 Reconciliation of Non-GAAP Financial Measures (Unaudited; Amounts in millions) Three Months Ended December 31, Foreign Foreign Foreign Currency Currency Selling and Administrative Reconciliation - Adjusted Currency Neutral Neutral FX Impact 2013 2012 Growth Translation Change Growth % Gro

  23. Slide 23: Q1 FY 2014 Reconciliation of Non-GAAP Financial Measures

    Q1 FY 2014 Reconciliation of Non-GAAP Financial Measures (Unaudited) Three Months Ended December 31, Foreign Foreign Foreign Currency Currency Currency Neutral Growt Neutral 2013 2012 Growth Translation Change h% Growth % Reported Diluted Earnings per Share from Continuing Operations $ 1.37 $ 1.35 $

  24. Slide 24: Q1 FY 2014 Reconciliation - FX Impact Emerging Markets and China

    Q1 FY 2014 Reconciliation - FX Impact Emerging Markets and China (Unaudited; Amounts in millions) Three Months Ended December 31, % Change 2013 2012 Reported FXN FX Impact Total Emerging Markets Revenues $ 503 $ 455 10.6 13.4 (2.8) Total Emerging Markets Safety Revenues $ 108 $ 98 11.0 15.0 (4.0) Ch

  25. Slide 25: FY 2013 Reconciliation

    FY 2013 Reconciliation Twelve Months Ended September 30, Pending Litigation Pension Pension Reported Settlement Verdict Settlement Adjusted Reported Settlement Adjusted Adjusted (1) (2) (3) (3) FY 2013 Charge Charge Charge FY 2013 FY 2012 Charge FY 2012 % Growth REVENUES $ 8,054 - - - $ 8,054 $ 7,70

  26. Slide 26: FY 2014 Outlook Reconciliation

    FY 2014 Outlook Reconciliation Reported Basis FX Impact FXN Basis Revenues - Full Year 2014 estimated growth 4.5% - 5.0% 0.0% 4.5% - 5.0% Full Year Full Year 2014 2013 % Increase (estimated) Reported Fully Diluted Earnings per Share from Continuing Operations $ 6.19 - 6.22 $ 4.67 NM Pending Litigati

Becton, Dickinson and Company — Q1 FY2014 Earnings Presentation on 6ix