Danaher Corporation · NYSE:DHR
Danaher — Q4 2022 Earnings Presentation
37 slides from Danaher's earnings presentation, Jan 24, 2023
Slide 1: Danaher Corporation Fourth Quarter 2022 Earnings Release
DANAHER CORPORATION Fourth Quarter 2022 Earnings Release January 24, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding Danaher’s anticipated future financial performance and any other statements regarding events or developments that we anticipate will or may occur in the future are "forward
Slide 3: Performance Summary: Revenue
Performance Summary: Revenue Q4 REVENUE FY REVENUE +2.5% +7.0% Core +7.5% Core +9.5% FX -5.0% Acquisitions +1.5% FX -4.0% $8,148 $8,369 $29,453 $31,471 Q4 2021 ($ millions) Q4 2022 FY 2021 ($ millions) FY 2022 Throughout this presentation, with respect to revenue performance, for the definitions of
Slide 4: Performance Summary: Operating Profit Margin
Performance Summary: Operating Profit Margin Q4 OPERATING PROFIT MARGIN FY OPERATING PROFIT MARGIN +100 BPS +230 BPS Core +105 bps Core +60 bps Acquisitions -10 bps Acquisitions -30 bps Other +5 bps Other +200 bps 27.4% 25.3% 27.6% 26.4% Q4 2021 Q4 2022 FY 2021 FY 2022 Throughout this presentation w
Slide 5: Performance Summary: Adjusted Diluted Net EPS
Performance Summary: Adjusted Diluted Net EPS Q4 ADJUSTED DILUTED NET FY ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE EARNINGS PER COMMON SHARE +6.5% +9.0% $2.87 $10.95 $2.69 $10.05 Q4 2021 Q4 2022 FY 2021 FY 2022 For the definition of Adjusted Diluted Net EPS, please refer to the accompanying inf
Slide 6: Performance Summary: Free Cash Flow
Performance Summary: Free Cash Flow Q4 FREE CASH FLOW FY FREE CASH FLOW +15.5% +4.0% $7,077 $7,376 $2,212 $1,913 Q4 2021 ($ millions) Q4 2022 FY 2021 ($ millions) FY 2022 For the definition of Free Cash Flow, please refer to the accompanying information required by Regulation G, located at the end o
Slide 7: Fourth Quarter 2022: Biotechnology
Fourth Quarter 2022: Biotechnology REVENUE OPERATING PROFIT MARGIN -1.0% -360 BPS Core +4.0% Core -340 bps FX -5.0% Acquisitions -20 bps $2,242 $2,223 34.8% 31.2% Life Sciences Q4 2021 ($ millions) Q4 2022 Q4 2021 Q4 2022 7
Slide 8: Fourth Quarter 2022: Life Sciences
Fourth Quarter 2022: Life Sciences REVENUE OPERATING PROFIT MARGIN 8.0% +250 BPS Core +13.0% Core +200 bps FX -5.0% Acquisitions -20 bps Other +70 bps Industrial $1,804 $1,946 20.1% 17.6% Q4 2021 ($ millions) Q4 2022 Q4 2021 Q4 2022 8
Slide 9: Fourth Quarter 2022: Diagnostics
Fourth Quarter 2022: Diagnostics REVENUE OPERATING PROFIT MARGIN +3.0% +240 BPS Core +7.5% Core +240 bps FX -4.5% $2,881 $2,965 31.0% 33.4% Q4 2021 ($ millions) Q4 2022 Q4 2021 Q4 2022 9
Slide 10: Fourth Quarter 2022: Environmental & Applied Solutions
Fourth Quarter 2022: Environmental & Applied Solutions REVENUE OPERATING PROFIT MARGIN +1.0% +570 BPS Core +5.5% Core +565 bps Acquisitions +0.5% Acquisitions +5 bps FX -5.0% 24.8% $1,221 $1,235 19.1% Q4 2021 ($ millions) Q4 2022 Q4 2021 Q4 2022 10
Slide 11: Guidance
GUIDANCE 11
Slide 12: Q&A
Q&A 12
Slide 13: DANAHER
DANAHER
Slide 14: Reconciliation of GAAP to Non-GAAP Financial Measures
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE-MONTH PERIODS AND YEARS ENDED DECEMBER 31, 2022 AND DECEMBER 31, 2021
Slide 15: Table of Contents
TABLE OF CONTENTS Page 1 Sales Growth, Core Sales Growth by Segment and Base Business Core Sales Growth 2 Forecasted Core Sales Growth and Base Business Core Sales Growth and Adjusted Operating Profit Margin 3 Segment Sales, Operating Profit and Adjusted Operating Profit 4 Net Earnings From Continui
Slide 16: Sales Growth, Core Sales Growth by Segment and Base Business
DANAHER CORPORATION Sales Growth, Core Sales Growth by Segment and Base Business Core Sales Growth % Change Three-Month Period Ended December 31, 2022 vs. Comparable 2021 Period Segments Environmental & Total Company Biotechnology Life Sciences Diagnostics Applied Solutions Total sales growth (GAAP)
Slide 17: Forecasted Core Sales Growth and Adjusted Operating Profit Margin
DANAHER CORPORATION Forecasted Core Sales Growth and Base Business Core Sales Growth and Adjusted Operating Profit Margin The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisi
Slide 18: Segment Sales, Operating Profit and Adjusted Operating Profit
DANAHER CORPORATION Segment Sales, Operating Profit and Adjusted Operating Profit ($ in millions) Three-Month Period Ended Year Ended December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 Sales (GAAP) Biotechnology $ 2,223 $ 2,242 $ 8,758 $ 8,570 Life Sciences 1,946 1,804 7,036 6,3
Slide 19: Net Earnings, Operating Profit, Adjusted EBITDA: Q4 2022
DANAHER CORPORATION Net Earnings From Continuing Operations; Operating Profit; Adjusted EBITDA; Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2022 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing
Slide 20: Net Earnings, Operating Profit, Adjusted EBITDA: Q4 2021
DANAHER CORPORATION Net Earnings From Continuing Operations; Operating Profit; Adjusted EBITDA; Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2021 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing
Slide 21: Net Earnings, Operating Profit, Adjusted EBITDA: Year 2022
DANAHER CORPORATION Net Earnings From Continuing Operations; Operating Profit; Adjusted EBITDA; Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2022 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (G
Slide 22: Net Earnings, Operating Profit, Adjusted EBITDA: Year 2021
DANAHER CORPORATION Net Earnings From Continuing Operations; Operating Profit; Adjusted EBITDA; Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2021 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (G
Slide 23: Other Non-GAAP Adjusted P&L Measures: Q4 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2022 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating
Slide 24: Other Non-GAAP Adjusted P&L Measures: Q4 2021
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2021 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating
Slide 25: Other Non-GAAP Adjusted P&L Measures: Year 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2022 Net earnings from Diluted net Earnings from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating Operating befo
Slide 26: Other Non-GAAP Adjusted P&L Measures: Year 2021
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2021 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating Operating befo
Slide 27: Other Non-GAAP Adjusted P&L Measures: Footnotes
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 ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above): Thr
Slide 28: Other Non-GAAP Adjusted P&L Measures: Footnotes
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) K Discrete tax adjustments and other tax-related adjustments for both the three-month period and year ended December 31, 2022, include the impact of net discrete tax benefits of $452 million and $504 mill
Slide 29: Adjusted Average Common Stock and Diluted Shares Outstanding
DANAHER CORPORATION Adjusted Average Common Stock and Common Equivalent Diluted Shares Outstanding (shares in millions) Forecasted Three-Month Three-Month Period Ended Year Ended Period Ending Year Ending December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021 March 31, 2023 December
Slide 30: Year-Over-Year Core Operating Margin Changes: Three-Month Period
DANAHER CORPORATION Year-Over-Year Core Operating Margin Changes from Continuing Operations Segments Environmental & Applied Total Company Biotechnology Life Sciences Diagnostics Solutions Three-Month Period Ended December 31, 2021 Operating Profit Margins from Continuing Operations (GAAP) 26.40 % 3
Slide 31: Year-Over-Year Core Operating Margin Changes: Year
DANAHER CORPORATION Year-Over-Year Core Operating Margin Changes from Continuing Operations Segments Environmental & Applied Total Company Biotechnology Life Sciences Diagnostics Solutions Year Ended December 31, 2021 Operating Profit Margins from Continuing Operations (GAAP) 25.30 % 35.90 % 20.20 %
Slide 32: Cash Flow, Free Cash Flow and Conversion Ratio
DANAHER CORPORATION Cash Flow from Continuing Operations, Free Cash Flow from Continuing Operations and Free Cash Flow from Continuing Operations to Net Earnings from Continuing Operations Conversion Ratio ($ in millions) Three-Month Period Ended Year Ended December 31, December 31, Year-over-Year D
Slide 33: Former Life Sciences Segment Presentation
DANAHER CORPORATION Former Life Sciences Segment Presentation Sales Growth and Core Sales Growth of Former Life Sciences Segment % Change Three-Month Period Ended % Change Year Ended December 31, 2022 vs. December 31, 2022 vs. Comparable 2021 Period Comparable 2021 Period Total sales growth (GAAP) B
Slide 34: 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 35: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures ◦ Other Adjustments: With respect to the other items excluded from Adjusted Diluted Net Earnings Per Common Share from Continuing Operations, we exclude these items because they are of a nature and/or size that occur with inconsistent frequen
Slide 36: Supplemental Forward-Looking Information and Quarter Highlights
DANAHER CORPORATION Supplemental Forward-Looking Information and Quarter Highlights Three-Month Period Ending Year Ending March 31, 2023 December 31, 2023 COVID-19 testing sales ~$450 ~$1,200 COVID vaccine and therapeutics sales ~$50 ~$150 8 Impact of currency exchange rates on sales ~$(225) ~$(50)
Slide 37: DANAHER
DANAHER