Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Investor Day (March 2012)
76 slides from Agilent Technologies's investor day presentation, Mar 8, 2012
Slide 1: Agilent Technologies 2012 Analyst Meeting
AGILENT TECHNOLOGIES 2012 ANALYST MEETING MARCH 8, 2012 NYSE EURONEXT NEW YORK, NY
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: Agenda
A GENDA 9:30 a.m. - 10:00 a.m. Registration 10:00 a.m. - 10:30 a.m. Bill Sullivan: Introduction and Strategic Update 10:30 a.m. - 11:00 a.m. Didier Hirsch: Financial Update 11:00 a.m. - 11:30 a.m. Q&A (Bill & Didier) 11:30 a.m. - 12:00 p.m. Break (Lunch Served) 12:00 p.m. - 12:20 p.m. Ron Nersesian:
Slide 4: Bill Sullivan, President and CEO
AGILENT TECHNOLOGIES 2012 ANALYST MEETING WILLIAM (BILL) P. SULLIVAN PRESIDENT CHIEF EXECUTIVE OFFICER
Slide 5: 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 MEASUREMENT ANALYSIS SCIENCES GROUP GROUP GROUP Ron Nersesian Guy Séné Mike McMullen Nick Roelofs FY11 Revenue $3.3B FY11 Revenue $1.5B FY11 Revenue $1.8B COO Operating Margin* 23% Operating Margin* 21% Ope
Slide 6: Agilent's Record of Operational Excellence
A G I L E N T ’ S R E C O R D O F O P E R AT I O N A L E XC E L L E N C E 2010-2011: 2006-2009: 2005: The new Agilent The world’s premier Transformation measurement company • Divestitures • Best operational • Focus on • Acquisitions performance in measurement • Restructuring 11-year history Agilent’
Slide 7: FY 2011: Best Year in Agilent's History
F Y 2 0 1 1 : B E S T Y E A R I N A G I L E N T ’ S H I S TO R Y • Delivered best operational performance in Agilent’s history • Generated 21% revenue growth and 48% EPS growth; $1.1B Free Cash Flow* • Achieved 20% operating margin and 25% ROIC AGILENT* • Continued integration of Varian while achiev
Slide 8: Building on Agilent's Operational Excellence
B UILDING ON A GILENT ’ S O PERATIONAL E XCELLENCE Raising the Bar • ROIC targets increased from 21% to 25% • Margin improvements consistent with the Operating Model Variable Cost Model • Realized $400M in variable savings in the 2008/2009 downturn, in addition to $525M in structural savings • Maint
Slide 9: Agilent's Strategic Focus Going Forward
AGILENT ’ S STRATEGIC FOCUS G OING FORWARD 1. Capitalize on Megatrends in Key Measurement Markets • Increasing mobility • Growing demand for energy • Improvements in human health and aging population • Food safety • Environmental 2. Continue Geographic Expansion: Rise of Emerging Markets • China: th
Slide 10: Summary
S UMMARY 1. Agilent is Well Positioned in 2012 • Expect to maintain our solid operating model through the economic cycle, raising the bar on operational excellence and leveraging variable cost model • Organizational structure in place to leverage the operational strength across businesses, driving m
Slide 11: Didier Hirsch, SVP and CFO
AGILENT TECHNOLOGIES 2012 ANALYST MEETING DIDIER HIRSCH SENIOR VICE PRESIDENT CHIEF FINANCIAL OFFICER
Slide 12: FY 2011 / FY 2012 Financial Highlights
F Y 2 0 1 1 / F Y 2 0 1 2 F INANCIAL H IGHLIGHTS Q2 FY12 FY12 FY11 Q1 FY12 Guidance** Guidance** Actual Actual (Mid-Point) (Mid-Point) Revenue $6.6B $1.6B $1.7B $7.0B Organic Revenue Growth* 17% 7% 2% 5% Operating Margin* 19.8% 19.2% 19.1% 20.6% EPS* $2.95 $0.69 $0.72 $3.18 ROIC* 25% 23% 25% 27% Ope
Slide 13: Agilent Operating Model
A G I L E N T O P E R AT I N G M O D E L * -1σ Most Likely +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 gene
Slide 14: Agilent Operating Model in the Last 5 Years
A GILENT O PERATING M ODEL * IN THE L AST 5 Y EARS FY 2006 FY 2011 CAGR EMG Revenue $M 3,419 3,316 -0.6% EMG FY 2006 revenue includes $375M from Operating Profit $M 414 760 12.9% divested/exited Operating Margin 12.1% 22.9% businesses LSG + CAG Revenue $M 1,554 3,310 16.3% Operating Profit $M 211 55
Slide 15: A Sustainable Operating Model
A S U S TA I N A B L E O P E R AT I N G M O D E L Top Line • Significant R&D investment and strong presence in emerging markets Gross Margin • ~$65M of Varian cost synergies over next three years • Major leverage opportunities across three businesses Expenses • Already significant R&D and SG&A. Run
Slide 16: Agilent Operating Model in FY 2012
A GILENT O PERATING M ODEL * IN FY 2012 FY 2011 FY 2012** FY 2012 / FY 2011 EMG Revenue $M 3,316 3,385 2.1% Operating Profit $M 760 774 1.8% Operating Margin 22.9% 22.9% LSG + CAG Revenue $M 3,310 3,585 8.3% Operating Profit $M 550 660 20.0% Operating Margin 16.6% 18.4% Agilent Revenue $M 6,626 6,97
Slide 17: Agilent Variable Cost Model
A GILENT VARIABLE C OST M ODEL Variable and discretionary cost and expense structure provides flexibility in a downside scenario: Agilent P&L Structure • Many costs and 100% expenses flex 90% automatically Variable costs COGS 80% and expenses ~38% • Variable or discretionary 70% costs and expenses V
Slide 18: Position, Sources and Uses of Cash
P OSITION, S OURCES AND U SES OF C ASH 1. Cash Position as of 1/31/12 • Cash and cash equivalents of $3.7B with $0.4B held in the U.S. • Net cash* position of $1.6B, $1B higher than one year ago 2. Sources of Cash • Expect to generate $0.9B Free Cash Flow* in FY 2012 • About 15% of Free Cash Flow ge
Slide 19: Q&A Bill Sullivan Didier Hirsch
Q&A Bill Sullivan Didier Hirsch CEO CFO
Slide 20: Ron Nersesian, EVP and COO
AGILENT TECHNOLOGIES 2012 ANALYST MEETING RON NERSESIAN EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER
Slide 21: Agilent's Earnings and Revenue Growth
AGILENT’ S EARNINGS AND R EVENUE G ROWTH Technology Operational Portfolio focused on leadership for share excellence through Earnings and high-return gains in core scale, scope, and revenue growth opportunities markets expertise Page 21
Slide 22: Why Agilent Will Win
WHY AGILENT WILL WIN Technology Operational Portfolio focused on leadership for share excellence through Earnings and high-return gains in core scale, scope, and revenue growth opportunities markets expertise Capitalize on R&D investment Sound business megatrends model and Strong business Vertical i
Slide 23: How Agilent Will Win: Focused Portfolio
H OW AGILENT W ILL W IN: FOCUSED P ORTFOLIO Portfolio focused on high-return opportunities % of Market 3-Year Agilent Focus Agilent Size Market Revenue Growth Pharma & Biotech 14% $11B 4-6% Academic & Government Research 8% $10B 3-5% Chemical & Energy 13% $4B 6-8% Environmental & Forensics 10% $4B 2
Slide 24: How Agilent Will Win: Emerging Markets
H OW AGILENT W ILL W IN: E MERGING M ARKETS Portfolio focused on high-return opportunities Changing Mix of Agilent Business • Agilent’s revenue from Split from HP Today (Q1 FY12) Future* emerging markets grew from $1.0B in 16% FY2000 to $1.7B in 26% 34% 6% 31% 29% FY2011 46% 13% 10% • Agilent expect
Slide 25: How Agilent Will Win: Technology Leadership
H OW A GILENT W ILL W IN : T ECHNOLOGY L EADERSHIP World-class research and Technology leadership for technology development share gains in produce leading edge platforms core markets across diverse markets Platforms Application Example Liquid Chromatograph R&D/QC; molecular biology, cancer research
Slide 26: How Agilent Will Win: Operational Excellence
H OW A GILENT W ILL W IN : O PERATIONAL E XCELLENCE Operational excellence through scale, scope, and expertise • Leverage $3B low-cost, high-quality supply chain to $7B company • New centralized order fulfillment and supply chain organization • Improve Agilent gross margins Page 26
Slide 27: What This Means for Investors
W HAT T HIS M EANS FOR I NVESTORS Technology Operational Portfolio focused on leadership for share excellence through Earnings and high-return gains in core scale, scope, and revenue growth opportunities markets expertise Agilent business model produces 30-40% incrementals Page 27
Slide 28: Guy Séné, President EMG
AGILENT TECHNOLOGIES 2012 ANALYST MEETING GUY SÉNÉ PRESIDENT ELECTRONIC MEASUREMENT GROUP (EMG)
Slide 29: Agilent in Electronic Measurement
AGILENT IN E LECTRONIC M EASUREMENT Agilent is the Industry Leader FY11 Revenue Distribution Global Workforce Distribution Manesar, India 19% Americas: 38 % 37% Europe: 11 % EMG is well positioned EMG Asia Pacific: 51% in emerging markets with direct R&D and $3.3B local presence in key countries 44%
Slide 30: Agilent in Electronic Measurement: Market
AGILENT IN E LECTRONIC M EASUREMENT Agilent is the Industry Leader Market Size: $13B 18% of Agilent Market Growth: 3-5% Communications revenue Global Growth Drivers • Relentless mobile broadband and Internet traffic growth Aerospace & 10% of Agilent Defense revenue • Investment in Aerospace & Defens
Slide 31: Agilent in Communications
A G I L E N T I N C O M M U N I C AT I O N S 18% of Agilent Market Size: $4B Communications Communications revenue Market Growth: 6-8% Market Drivers and Trends: • Growth in smartphone penetration • Mobile broadband explosion • Relentless Internet traffic growth • Optical technology deployment • 4G/
Slide 32: Agilent Unique Contribution in Communications Solutions
A G I L E N T U N I Q U E C O N T R I B U T I O N I N C O M M U N I C AT I O N S S OLUTIONS T HROUGH THE H ANDSET L IFECYCLE Electronic system Vector signal analysis Signal Analyzers Signal LTE signaling & RF & protocol test design software software with LTE Generators conformance test platforms Mea
Slide 33: How We Win in Communications
H O W W E W I N I N C O M M U N I C AT I O N S Chipsets Market Reach, Customer Trust Base • China Communications Operation Stations Devices • Leadership in technology standards bodies Networks • Strategic customer relationships through direct field Broadest range of solutions across ecosystem • Comp
Slide 34: Agilent in Aerospace & Defense
A G I L E N T I N A E R O S PA C E & D E F E N S E Market Size: $3B Aerospace & 10% of Agilent Defense revenue Market Growth: flat Drivers and Trends: • US and Europe budgets shifting to strategic systems and upgrades to state-of-the-art technologies • Growth outside US and Europe market: China, Rus
Slide 35: How We Win in Aerospace & Defense
H O W W E W I N I N A E R O S PA C E & D E F E N S E Market Reach, Customer Trust • Largest installed base • World-class, long-term service and support • Network of system integrators and in-house capabilities Leading Technology, Application Solutions • Direct wideband radar – 90000 X-Series oscillo
Slide 36: Agilent in Industrial, Computers, Semiconductor
A GILENT IN I NDUSTRIAL , C OMPUTERS , S EMICONDUCTOR Industrial, Market Size: $6B 21% of Agilent Computers & revenue Market Growth: 4-6% Semiconductor Drivers and Trends: • Mobile computing driven by smartphones, tablets, and notebook PCs • Cloud computing requires high performance computing and ne
Slide 37: How We Win in Industrial, Computers, Semiconductor
H OW W E W IN IN I NDUSTRIAL , C OMPUTERS , S EMI Market Reach, Customer Trust • Award-winning products plus an expanded indirect channel doubled Agilent’s customer base for general-purpose oscilloscopes in 2011 InfiniiVision Oscilloscopes – leveraging • Leadership in high-speed digital standards :
Slide 38: How We Win in Electronic Measurement
H OW W E W IN IN E LECTRONIC M EASUREMENT Leading the Industry Technology Operational Portfolio focused on leadership for share excellence through Earnings and high-return gains in core scale, scope, and revenue growth opportunities markets expertise • Solutions for • Broadest portfolio • World’s la
Slide 39: Nick Roelofs, President LSG
AGILENT TECHNOLOGIES 2012 ANALYST MEETING NICK ROELOFS, PH.D. PRESIDENT LIFE SCIENCES GROUP (LSG)
Slide 40: Life Sciences Market Overview
L IFE S CIENCES M ARKET OVERVIEW A GILENT’ S L ARGEST M ARKET O PPORTUNITY Market Size: $21B+ Growth: 4-6% Pharma & 14% of Agilent Biotech revenue Growth Drivers • BRIC market strength • Continuing Global Academic and Government Life Science research Academia & investments 8% of Agilent Government R
Slide 41: Pharma Market Trends
PHARMA MARKET TRENDS Market Size: $11B Growth: 4-6% Pharma & 14% of Agilent Biotech revenue Market Trends • Rise in biologics; shift from New Chemical Entities (NCE) to New Biological Entities (NBE) • Geographic relocation of therapeutic production • Technology upgrade opportunities (e.g. UHPLC) • N
Slide 42: Winning Solutions in Pharma
W INNING S OLUTIONS IN P HARMA Market Reach & Customer Trust • Expanding our channel in China, India, Korea, Brazil • Increasing application engineers to support NBE transitions and technology upgrades • World-class service and support Technology Innovation & Application Solutions • Providing advanc
Slide 43: Academic/Government Market Trends
ACADEMIC/ G OVERNMENT M ARKET T RENDS Market Size: $10B Academia & Growth: 3-5% Government 8% of Agilent Research revenue Market Trends • Academic spending growth remains under pressure in G8 counties – concerns over governmental budgets and stimulus headwinds • Sustained strength in emerging market
Slide 44: Winning Solutions in Academic/Government
W INNING S OLUTIONS IN A CADEMIC/ G OVERNMENT Market Reach & Customer Trust • Expanding market penetration across all geographies via specialized academic sales channel • Leading in new emerging opportunities via workflow solutions (e.g. translational research investment) • Thought Leader Program –
Slide 45: Molecular Diagnostics Market Path
M O L E C U L A R D I A G N O S T I C S M A R K E T P AT H Demonstrated Life Science Success Molecular Diagnostic Market Size*: $4.5B Projected Growth*: 10-15% FY 2011 Revenue: $1.8B • Increased healthcare demands from global aging populations Technology Platform Status Platform Technologies • Emerg
Slide 46: How We Win in Life Sciences
H OW W E W IN IN L IFE S CIENCES Delivering on a Focused Strategy Technology Market Reach & Innovation & Organizational Scale & Leverage Customer Trust Application Capabilities Solutions • Academic/ • Superior • Capitalize on • World-class Government product quality manufacturing in team with life c
Slide 47: Mike McMullen, President CAG
AGILENT TECHNOLOGIES 2012 ANALYST MEETING MIKE MCMULLEN PRESIDENT CHEMICAL ANALYSIS GROUP (CAG)
Slide 48: Chemical Analysis Market Overview
C H E M I C A L A N A LY S I S M A R K E T O V E R V I E W Sustained Growth Markets Market Size: $11B+ Growth: 5-6% Global Growth Drivers Chemical & 13% of Agilent Energy revenue • Increased focus on quality of life • Developing economies Environmental & 10% of Agilent • Growing population Forensics
Slide 49: Trends in Chemical & Energy
T RENDS IN C HEMICAL & E NERGY Market Size: $4B Chemical & 13% of Agilent Growth: 6-8% Energy revenue • Developing economies driving increased need for chemicals, raw materials and energy • Drive for new sources of fuel – biofuels, shale gas and tar sands • Deep-water oil exploration • More stringen
Slide 50: How We Win in Chemical & Energy
H OW W E W IN IN C HEMICAL & E NERGY Leading technology, applications Chemical & • Focus on research 13% of Agilent Energy revenue • Develop breakthrough tools • Alternative energy collaborations • Address regulatory compliance needs • Expanded analyzer portfolio via Varian acquisition • Capture gro
Slide 51: Trends in Environmental & Forensics
T R E N D S I N E N V I R O N M E N TA L & F O R E N S I C S Market Size: $4B Environmental & 10% of Agilent Growth: 2-4% Forensics revenue • Emerging countries are recognizing the importance of environmental protection, for quality of life and for sustaining economic growth • Increased government f
Slide 52: How We Win in Environmental & Forensics
H O W W E W I N I N E N V I R O N M E N TA L & F O R E N S I C S Leading technology, applications • Introduce breakthrough tools • Game-changing improvements in Environmental & 10% of Agilent Forensics revenue productivity, cost of ownership and performance • Broaden portfolio to meet application ne
Slide 53: Trends in Food
TRENDS IN FOOD Market Size: $3B 6% of Agilent Growth: 6-8% Food revenue • Globalization of food supply • Increasing awareness of food adulteration • More stringent government regulations • Brand protection awareness increasing, driving private investment • Increased expectations for food quality and
Slide 54: How We Win in Food
H OW W E W IN IN FOOD Leading technology, applications • Be the “first responder” of choice for 6% of Agilent unknown contaminants Food revenue • Unique technology and in-country expertise • Cover all application needs • Expand portfolio with leading spectroscopy, chromatography, mass Triple Quad GC
Slide 55: BAM Services: Accelerating Growth in All Markets
BAM S ERVICES: ACCELERATING G ROWTH IN A LL M ARKETS BAM Market Growth: 5-6% Bio-Analytical Agilent BAM – Q4’11 & Q1’12 Growth: 10% Measurement (BAM) Services Market Growth: 4-6% Services Agilent BAM Services – Q4’11 & Q1’12 Growth: 17% BAM Services are essential to all markets Consult for Innovatio
Slide 56: How We Win in Chemical Analysis
H O W W E W I N I N C H E M I C A L A N A LY S I S Our Unique Capabilities Leading Strong Local Superior Customer Technology, Scale & Leverage Presence Relationships Services • Expanding team • Investing in • Leveraging • #1 in loyalty in emerging R&D above Agilent Asia markets competitors supply ch
Slide 57: Gooi Soon Chai, SVP Order Fulfillment
AGILENT TECHNOLOGIES 2012 ANALYST MEETING GOOI SOON CHAI SENIOR VICE PRESIDENT ORDER FULFILLMENT
Slide 58: Agilent Order Fulfillment
AGILENT ORDER FULFILLMENT EM and BAM Agilent Order Fulfillment Supply Chain Orders Procurement Manufacturing Engineering Logistics Customers Leverage scale & scope of Agilent Global purchasing power Optimize the Supply Chain Maximize use of Asia Supply Base Harness engineering capabilities
Slide 59: Achieving Gross Margin Excellence in EMG
A C H I E V I N G G R O S S M A R G I N E XC E L L E N C E I N E M G FY11 Gross Margin at 58.4% GM% improved by 5ppt with Revenue growth of 17% CAGR since FY09 Technology Centers Santa Rosa Achieved through the following : Manufacturing Center Penang Streamlined manufacturing footprint Maximiz
Slide 60: BAM Gross Margin Improvement
BA M G ROSS M ARGIN I MPROVEMENT Consolidation of manufacturing sites Spectroscopy transfer from Melbourne to Penang - 1st product launched PCR and NMR consoles manufacturing in Penang LC/MS manufacturing established in Singapore GC manufacturing in Shanghai Sourcing in Asia Shanghai Lever
Slide 61: Going Forward
G O I N G F O R WA R D High Value, High Technology, Innovative Products & Solutions Order Fulfillment Excellence Operational Excellence Engineering Excellence Manufacturing sites consolidation Value Engineering for cost improvement Leverage global purchasing power Parts & Product Redesign fo
Slide 62: Q&A
Q&A Ron Nersesian Guy Séné Nick Roelofs Mike McMullen Gooi Soon Chai COO EMG LSG CAG SVP OF
Slide 63: Reconciliations
RECONCILIATIONS “Ee Agilent Technologies
Slide 64: Electronic Measurement Segment
AGILENT TECHNOLOGIES, INC. ELECTRONIC MEASUREMENT SEGMENT (Unaudited) PRELIMINARY (In millions, except margins and ROIC data) FY 2011 Q1 Q2 Q3 Q4 Total Orders $ 797 $ 844 $ 842 $ 822 $ 3,305 Net revenue $ 771 $ 834 $ 856 $ 855 $ 3,316 Gross margin % 58.1% 59.5% 57.7% 58.4% 58.4% Income from operatio
Slide 65: Chemical Analysis Segment
AGILENT TECHNOLOGIES, INC. CHEMICAL ANALYSIS SEGMENT (Unaudited) PRELIMINARY (In millions, except margins and ROIC data) FY 2011 Q1 Q2 Q3 Q4 Total Orders $ 388 $ 380 $ 400 $ 421 $ 1,589 Net revenue $ 349 $ 381 $ 383 $ 405 $ 1,518 Gross margin % 51.1% 50.3% 50.7% 52.4% 51.1% Income from operations $
Slide 66: Life Sciences Segment
AGILENT TECHNOLOGIES, INC. LIFE SCIENCES SEGMENT (Unaudited) PRELIMINARY (In millions, except margins and ROIC data) FY 2011 Q1 Q2 Q3 Q4 Total Orders $ 442 $ 479 $ 445 $ 509 $ 1,875 Net revenue $ 404 $ 464 $ 453 $ 471 $ 1,792 Gross margin % 53.3% 52.2% 51.3% 51.4% 52.0% Income from operations $ 48 $
Slide 67: Reconciliation of Organic Revenue
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ORGANIC REVENUE (IN MILLIONS) PRELIMINARY Years Ended October 31, Percent 2011 2,010 Inc/(Dec) GAAP Revenue $ 6,615 $ 5,444 22% Varian acquisition fair value adjustments 11 19 Non-GAAP Revenue $ 6,626 $ 5,463 21% Less revenue from acquisition and divestit
Slide 68: Non-GAAP Net Income and Diluted EPS Reconciliations
AGILENT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS (In millions, except per share amounts) (Unaudited) PRELIMINARY Three Months Ended Years Ended October 31, October 31, Diluted Diluted Diluted Diluted 2011 EPS 2010 EPS 2011 EPS 2010 EPS GAAP Net income $ 289 $ 0.82 $ 292
Slide 69: Reconciliation of Operating Free Cash Flow
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF OPERATING FREE CASH FLOW (IN MILLIONS) PRELIMINARY FY 2011 Net cash provided by operating activities 1,260 Less: Investments in property, plant and equipm 188 Operating free cash flow $ 1,072 Operating free cash flow is a non-GAAP measure which management
Slide 70: Reconciliation from GAAP to Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP YEAR ENDED October 31, 2011 (Unaudited) PRELIMINARY NON-GAAP ADJUSTMENTS Restructuring Varian and Other Acquisition & Acquisition Agilent Related Costs- Asset Intangible Transformation Integration Fair Value Foundation Adjustment (In mil
Slide 71: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) PRELIMINARY Agilent Numerator: FY'11 Non-GAAP income from operations 1,310 Less: Taxes and Other (income)/expense 204 (a) Segment return 1,105 Segment return annualized 1,105 Denominator: (b) Segment assets 5,767 Less: (c) N
Slide 72: Reconciliation from GAAP to Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP THREE MONTHS ENDED January 31, 2012 (Unaudited) PRELIMINARY NON-GAAP ADJUSTMENTS Acquisition & Intangible Transformation Integration Adjustment (In millions, except per share amounts) GAAP Amortization Initiatives Costs Other for Taxes N
Slide 73: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) PRELIMINARY LSG CAG EMG Agilent LSG CAG EMG Agilent LSG CAG EMG Agilent Numerator: Q1'12 Q1'12 Q1'12 Q1'12 Q1'11 Q1'11 Q1'11 Q1'11 Q4'11 Q4'11 Q4'11 Q4'11 Non-GAAP income from operations $ 66 $ 88 $ 160 $ 314 $ 48 $ 65 $ 156
Slide 74: Segment Information
AGILENT TECHNOLOGIES, INC. SEGMENT INFORMATION (Unaudited) PRELIMINARY (In millions, except margin data) FY 2011 EMG LSG + CAG Total Net revenue $ 3,316 $ 3,310 $ 6,626 Income from operations $ 760 $ 550 $ 1,310 Operating margin % 22.9% 17.9% 19.8% FY 2006 EMG LSG + CAG Total Net revenue $ 3,419 $ 1
Slide 75: Reconciliation from GAAP to Non-GAAP Net Income
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP NET INCOME TWELVE MONTHS ENDED OCTOBER 31, 2006 (Unaudited) Non-GAAP Adjustments Business Retirement Income from Other, SPG & STS Restructuring Disposal Gain on Gain on Sale Excess Plans Foreign Sales Unallocated Unallocated Principally
Slide 76: Net Cash
AGILENT TECHNOLOGIES, INC. NET CASH (In millions) (Unaudited) PRELIMINARY Q1'12 Q1'11 Q4'11 Cash and cash equivalents $ 3,662 $ 2,638 $ 3,527 Restricted cash and cash equivalents — 17 — Short-term debt, par value (250) (1) (250) Senior notes, par value (1,850) (2,100) (1,850) Total Net Cash $ 1,562