Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q2 2023 Earnings Presentation
53 slides from Becton, Dickinson And's earnings presentation, May 4, 2023
Slide 1: Q2 FY23 Earnings Presentation
Q2 FY23 Earnings Presentation May 4, 2023 Advancing the TM world of health
Slide 2: Caution Concerning Forward-Looking Statements and Non-GAAP 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 Q2 FY23 EARNINGS PRESENTATION MAY 4, 2023 4
Slide 5: Executive Summary
“Since launching BD2025, we have made purposeful and strategic investments to shift BD into attractive end-markets to advance innovations that are transforming Executive healthcare and driving company growth. Our strong performance this quarter reflects our strategy in action and the Summary positiv
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 Q2 FY23 EARNINGS PRESENTATION MAY 4, 2023 6
Slide 7: Strong performance reflects BD2025 strategy in action
Strong performance reflects BD2025 strategy in action ✓ BD2025 is consistently delivering multiple periods of strong financial performance and is enabling continued momentum ✓ Purposeful capital allocation toward attractive end-markets and successful integration of tuck-in M&A is driving higher grow
Slide 8: ESG: Together We Advance
ESG: Together We Advance - driving outcomes across four pillars of health Named a “Noteworthy Company” for the fourth straight year in DiversityInc’s annual ranking of the top U.S. companies for diversity Q2 FY23 EARNINGS PRESENTATION MAY 4, 2023 8
Slide 9: Innovation
Innovation Q2 FY23 EARNINGS PRESENTATION MAY 4, 2023 9
Slide 10: Our growth and innovation mindset
Our growth and innovation mindset On track to launch Purposeful investments Higher product (1) >100 products by FY25 driving growth development velocity • Prioritizing investments • Biosciences • Multiple recent launches towards higher growth • Pharma and Biotech Drug driving growth spaces in durabl
Slide 11: Our purposeful and strategic investments are driving consistent growth
Our purposeful and strategic investments are driving consistent growth On track to achieve FY25 targets Incremental new product revenue(1) Shifting our portfolio mix CAGR ~$1.7B(3) 5.5%+ ~25% ~$1.1B ~20% ~22% ~$0.8B(3) ~75% ~78% ~80% FY21 FY22 FY25 FY21 FY22 FY25 WAMGR ~7.0% ~7.25% ~8.0% ~4.0% ~4.2%
Slide 12: 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 PowerMe™ Midline Catheter BD Vaginal Panel Highlander™ 014 PTA Balloon • Launched in Q2 FY23 • Received 510(k) clearance for
Slide 13: 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 PIVO™ Pro and BD Nexiva™ with BD Rhapsody™ HT Xpress Phasix™ ST Umbilical NearPort™ IV Access • Completed the early-acce
Slide 14: Our innovation pipeline - over 100 new product launches expected by FY25
Our innovation pipeline - Over 100 new product launches expected by FY25 (1) Recent innovation driving growth Near-term catalysts Select pipeline products BD Medical BD Posiflush™ China Midline BD Intellivault™ SafeScrub BD Pyxis™ ES1.7 / PowerMe™ EU Next Gen BD Intelliport™ Parata Max® 2 C2Safe Inf
Slide 15: BD Medical: making medication delivery safer, simpler and smarter
BD Medical: making medication delivery safer, simpler and smarter Category Size WAMGR Key Products / Pipeline 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% Infusi
Slide 16: BD Life Sciences: from sample collection and discovery to diagnostics
BD Life Sciences: from sample collection and discovery to diagnostics and beyond Category Size WAMGR Key Products / Pipeline Single Cell Analysis Additional (BDB) FACSDiscover™ FACSDuet™ RealBlue™ & ~$3B ~5.5% S8 Cell Sorter Premium RealYellow™ Dyes Microbiology BD Kiestra™ Synapsys™ Next Gen (IDS)
Slide 17: BD Interventional: transforming solutions for chronic disease management
BD Interventional: transforming solutions for chronic disease management Category Size WAMGR Key Products / Pipeline Peripheral Vascular Low Profile Disease (PI) Rotarex™ Small Arterial Next Gen DCB ~$5B ~6% Vessel StentGraft Oncology Multi-Modality (PI) Bone Biopsy Vacuum ~$3B ~6% Assisted IO Bead
Slide 18: Financial Performance
“Our innovation pipeline and the impact of our M&A strategy played a key role in Financial our results, and we remain well- positioned to continue driving strong growth and performance in the future.” Performance Christopher DelOrefice BD EVP and CFO Q2 FY23 EARNINGS PRESENTATION MAY 4, 2023 18
Slide 19: Significant progress made toward delivering BD2025 financial targets
Significant progress made toward delivering BD2025 financial targets increased base Investor Day operating margin continued 5.5%+ double-digit Targeted improvement to dividend base revenue EPS growth Growth ~540 bps (2) excluding estimated impact of Profile(1) growth growth COVID-only testing from ~
Slide 20: Delivering consistent performance and value creating results
Delivering consistent performance and value creating results ✓Increasing midpoint (1) of FY23 guidance driven by strong execution and base business performance (1) (1) Base revenue h 8.7% ✓Purposeful and strategic investments are delivering consistent higher growth and strong financial performance O
Slide 21: Q2 FY23 revenue summary by segment and geography
Q2 FY23 revenue summary – by segment and geography Revenue by segment Revenue by geography Total BD United States BD Medical 57% $2,360M +12.2% FXN $4,821M +4.1% FXN Base revenues BD Life Sciences $1,275M $4,805M (11.5%) FXN +8.7% FXN Base revenues International +7.0% Organic FXN $1,259M 43% +2.2% F
Slide 22: BD Medical: Execution of core strategy continues to drive strong growth
BD Medical: Execution of core strategy continues to drive strong growth Q2 FY23 BD Management Q2 Commentary MDS • Our comprehensive Vascular Access Management strategy continues to $1,070M Medication drive strong performance evidenced by BD Posiflush™ and our Catheter 4.6% FXN Solutions Delivery PS
Slide 23: BD Life Sciences: Strong focus on execution driving base revenue growth
BD Life Sciences: Strong focus on execution driving base revenue growth despite (~800 bps) grow over from prior year respiratory testing Q2 FY23 BD Management Q2 Commentary BDB • Strong base revenue growth was negatively impacted by higher Flu/COVID $386M combination testing volumes from prior year
Slide 24: BD Interventional: Continued strong performance across the portfolio
BD Interventional: Continued strong performance across the portfolio expanding focus on chronic disease outcomes Q2 FY23 BD Management Q2 Commentary PI • Advanced Repair and Reconstruction delivered strong double-digit $468M performance worldwide, driven by continued market adoption of Phasix™ +7.5%
Slide 25: BD2025 driving strong base revenue growth, executing margin expansion
BD2025 driving strong base revenue growth, executing margin expansion as planned Reported FXN Y/Y ∆ Y/Y ∆ P&L Highlights Q2 FY23 Q2 FY22 Revenues $4,821 $4,750 1.5% 4.1% Revenue: Strong base growth of 8.7% FXN driven by execution across Base Revenue $4,805 $4,535 6.0% 8.7% all three segments despite
Slide 26: 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 Q2 YTD R&D target R&D spend Targeted annual Strategically (4) as a % of directed towards capex spend deployed on value R&D $0.6 sales Trans
Slide 27: Guidance
Guidance Q2 FY23 EARNINGS PRESENTATION MAY 4, 2023 27
Slide 28: FY23 Guidance Summary
FY23 Guidance Summary May 4, 2023 February 2, 2023 Comments • Includes ~125 bps from inorganic M&A offset by a reduction of ~(100 bps) related to strategic portfolio exits 6.5% to 7.0% 5.75% to 6.75% • Only includes Alaris capital shipments related to medical necessity; in-line with FY22 Base revenu
Slide 29: Raising base revenue guidance driven by strong overall Q2 performance
Raising base revenue guidance driven by strong overall Q2 performance Increasing base FXN revenue growth ~50 bps h ~50 bps (or ~$90M) h ~25 bps $19.2B to $19.3B neutral organic Expect COVID-only testing $19.1B to $19.3B h ~25 bps inorganic revenues of ~$50M FY23 base (compared to ~$50M to revenue FY
Slide 30: Increasing midpoint of FY23 adjusted EPS guidance
Increasing midpoint of FY23 adjusted EPS guidance Expect full-year double-digit base FXN earnings growth Strong base business performance enabling increasing investments in growth and innovation while absorbing the decline in higher-margin COVID-only testing and incremental FX pressure ~11.5¢ ~9.5%
Slide 31: Key Considerations
Key Considerations • Remainder of year organic base revenue growth rate expected to be fairly ratable Revenue • Q4 revenue $ expected to be sequentially higher than Q3 • Based on current spot rates (EUR = 1.10 USD), FX expected to be a headwind in Q3 and a slight tailwind in Q4 Expect full-year adju
Slide 32: Appendix
Appendix Q2 FY23 EARNINGS PRESENTATION MAY 4, 2023 32
Slide 33: Glossary
Glossary Acronym Defined Term B Billion FY Fiscal Year PCR Polymerase Chain Reaction BDB Biosciences HPV Human Papillomavirus PI Peripheral Intervention BPS Basis Points HT High Throughput POC Point of Care Identification & Antibiotic Susceptibility BTK Below the Knee ID/AST PVD Peripheral Vascular
Slide 34: Supplemental Revenue Information
Supplemental Revenue Information Quarterly Reconciliation of Reported Revenue Change to Base Revenue Change For the Three Months Ended March 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 2023 2022 FX Impact FXN Change Change Reported FXN TOTAL RE
Slide 35: 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 March 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 2023 2022 FX Impact FXN Change Cha
Slide 36: 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 March 31, Foreign Foreign Foreign Currency Currency Currency N
Slide 37: 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 March 31, 2023 Notes for Non- Income tax (A) GAAP Reported Purchase Integration Restructuring Separation - Europe
Slide 38: 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 March 31, 2022 Product, Notes for litigation, Income tax (B) Non-GAAP Reported Purchase Integration Restructuring
Slide 39: 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 March 31, 2023 Compared With Three Months Ended March 31, 2022 (A) (B) (C) = (A) - (B) (D) = (C) / (B) (E) (F)
Slide 40: Reported Diluted EPS to Adjusted Diluted EPS (Year to Date)
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Year to Date Reconciliation of Reported Diluted EPS from Continuing Operations to Adjusted Diluted EPS from Continuing Operations For the Six Months ended March 31, Foreign Foreign Foreign Currency Currency Currency
Slide 41: Supplemental Non-GAAP Reconciliation 1 of 3
Supplemental Non-GAAP Reconciliation 1 of 3 Year to Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Six Months ended March 31, 2023 Product, Notes for litigation, Income tax (A) Non-GAAP Reported Purchase Integration Restructurin
Slide 42: Supplemental Non-GAAP Reconciliation 2 of 3
Supplemental Non-GAAP Reconciliation 2 of 3 Year to Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Six Months ended March 31, 2022 Product, Notes for litigation, Income tax (B) Non-GAAP Reported Purchase Integration Restructurin
Slide 43: Supplemental Non-GAAP Reconciliation 3 of 3
Supplemental Non-GAAP Reconciliation 3 of 3 Year to Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations Change in Six Months Ended March 31, 2023 Compared With Six Months Ended March 31, 2022 (A) (B) (C) = (A) - (B) (D) = (C) / (B) (E) (F) =
Slide 44: Organic Growth Reconciliation and Adjusted Operating Margin
Supplemental Revenue Information - Organic Growth Reconciliation For the Twelve Months Ended September 30, (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 BDX REVENUES FROM CONTINUING OPERATIONS
Slide 45: Reported Diluted EPS to Adjusted Diluted EPS (Twelve Months)
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Year to date Reconciliation of Reported EPS from Continuing Operations to Adjusted Diluted EPS from Continuing Operations For the Twelve Months Ended September 30, Foreign Foreign Foreign Currency Currency Currency N
Slide 46: Supplemental Non-GAAP Reconciliation 1 of 2
Supplemental Non-GAAP Reconciliation 1 of 2 Year to Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Twelve Months ended September 30, 2022 Notes for Non- Product, Income tax (A) GAAP Purchase Integration Restructuring Separation
Slide 47: Supplemental Non-GAAP Reconciliation 2 of 2
Supplemental Non-GAAP Reconciliation 2 of 2 Year to Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Twelve Months ended September 30, 2021 Notes for Non- Product, Income tax (B) GAAP Reported Purchase Integration Restructuring Eu
Slide 48: Revenues by Business Segments and Units
Supplemental Revenue Information – Revenues by Business Segments and Units For the Three Months ended March 31, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2023 2022 FX Impact Reported FXN BD MEDICAL Medication Delivery Solutions(1) $1,070 $1,049 ($28) 1.9% 4.6% Medication Manage
Slide 49: Revenues by Geographic Regions
Supplemental Revenue Information– Revenues by Geographic Regions For the Three Months ended March 31, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2023 2022 FX Impact Reported FXN United States $2,733 $2,669 $0 2.4% 2.4% International $2,088 $2,081 ($124) 0.4% 6.3% Developed Marke
Slide 50: 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 March 31, 2023 Reported GAAP net income from continuing operations $1,647 Adjusted
Slide 51: FY2023 Outlook Reconciliation
FY2023 Outlook Reconciliation Full Year FY2022 Full Year FY2023 Outlook ($ 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 from Continuing Operations $18,358 FY2023
Slide 52: FY2023 Outlook Reconciliation – Adjusted EPS
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 53: 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 53
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