Becton, Dickinson and Company · NYSE:BDX

Becton, Dickinson and — Q4 FY2015 Earnings Presentation

31 slides from Becton, Dickinson and's earnings presentation, Nov 4, 2015

  1. Slide 1: Fourth Quarter and Full-Year Results Fiscal Year 2015

    Fourth Quarter and Full-Year Results Fiscal Year 2015 Fiscal Year 2016 Guidance November 4, 2015

  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 fourth 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: Successful Close to a Historic Year at BD

    Successful Close to a Historic Year at BD FY 2015 Highlights  Strong revenue growth of 5.3%  Expanded in two strategic areas: Medication Management and Genomics  Emerging markets performing well and increased contribution from developed markets  Significant underlying margin expansion of ~100 bp

  5. Slide 5: FY 2016 Guidance Overview

    FY 2016 Guidance Overview FY 2016 As Adjusted FY 2015 Guidance Total Revenues FXN Growth % 5.3% (1) Organic Revenues FXN Growth % 4.7% (2) 4.5% to 5% (3) EPS $ $7.16 $8.37 to $8.44 EPS FXN Growth % 21.2% 22% to 23% EPS FXN Accretion % 12% ~22%  FY 2016 EPS FXN guidance of $8.73 to $8.80  FY 2016 E

  6. Slide 6: Financial Update

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

  7. Slide 7: FY 2015 Financial Highlights

    FY 2015 Financial Highlights Fourth Quarter Total Year Comparable Comparable As FXN FXN $ Growth % FXN $ Growth % FXN Adjusted Growth% Growth% Growth% Growth% Revenues $3,067 39.3% 49.1% 5.1% $10,302 22.0% 29.5% 5.3% EPS $1.94 11.5% 21.8% N/A $7.16 10.2% 21.2% N/A  Strong adjusted Q4 results  Exce

  8. Slide 8: Adjusted Revenues by Segment

    FY 2015 Adjusted Revenues by Segment Fourth Quarter Total Year Comparable Comparable FXN FXN As Adjusted $ Growth % FXN $ Growth % FXN Growth% Growth% Growth% Growth% Total $3,067 39.3% 49.1% 5.1% $10,302 22.0% 29.5% 5.3% Revenues Medical 2,091 75.3% 86.6% 5.2% 6,480 41.7% 50.2% 5.5% Life Sciences 9

  9. Slide 9: Adjusted U.S. and International Revenues

    FY 2015 Adjusted U.S. and International Revenues Fourth Quarter Total Year Comparable Comparable FXN FXN As Adjusted $ Growth % FXN $ Growth % FXN Growth% Growth% Growth% Growth% U.S. $1,640 88.3% 88.3% 4.6% $5,090 49.0% 49.0% 4.1% Medical 1,211 165.8% 165.8% 5.1% 3,407 89.4% 89.4% 4.2% Life Science

  10. Slide 10: BDX Legacy Emerging Markets

    FY 2015 BDX Legacy Emerging Markets  BDX Legacy Emerging Markets financial highlights for FY 2015: Fourth FXN Growth % Total Year Quarter Emerging Markets 5.9% 9.2% China 8.5% 15.4% (1) (1) Underlying China ~12% Note: Emerging markets include Eastern Europe, Middle East, Africa, Latin America, and

  11. Slide 11: Safety Revenues

    FY 2015 Safety Revenues Fourth Quarter Total Year Comparable FXN Comparable FXN $ Growth % $ Growth % FXN Growth% FXN Growth% Growth% Growth% Total Safety $744 31.3% 40.0% 8.2% $2,598 16.9% 23.3% 7.6% By Geography U.S. 441 46.6% 46.6% 4.4% 1,471 21.8% 21.8% 2.7% International 303 14.1% 32.7% 13.4% 1

  12. Slide 12: Q4 FY 2015 Adjusted Gross Margin Change Year-Over-Year

    Q4 FY 2015 Adjusted Gross Margin Change Year-Over-Year % of Revenue 53% 0.4% (0.5%) 52.4% 51.8% 0.7% 52% $1,608 Performance Continuous Improvement, 51% $1,142 Raw Materials +100 bps Pension, Other -30 bps 50% Q4 FY 2014 Performance Currency Reclass Q4 FY 2015 12

  13. Slide 13: Q4 FY 2015 Adjusted Income Statement

    Q4 FY 2015 Adjusted Income Statement Favorable (Unfavorable) Adjusted Q4 Adjusted Q4 FXN % $ Change % Change FY 2015 FY 2014 Change Revenues $3,067 $2,202 $865 39.3% 49.1% Gross Profit 1,608 1,142 467 40.9% 49.5% % of Revenues 52.4% 51.8% SSG&A 748 542 (205) (37.8%) (47.0%) % of Revenues 24.4% 24.6%

  14. Slide 14: Guidance

    Financial Update Guidance 14

  15. Slide 15: FY 2015 & FY 2016 Pro Forma Organic Revenue Growth

    FY 2015 & FY 2016 Pro Forma Organic Revenue Growth FY 2015 Actuals FY 2016 Q1 Q2 Q3 Q4 FY 2015 Growth % (FXN) Guidance (2) CFN Stand-alone 9.9% 5.4% (2.2%) 3.4% 3.8% ~4% (1) Prior Guidance ~3% ~3.5% BDX Stand-alone 5.3% 4.9% 4.6% 5.5% 5.1% ~5% (1) Prior Guidance ~5% ~5% (3) (2) Comparable Organic 6.

  16. Slide 16: FY 2016 Adjusted EPS Guidance

    FY 2016 Adjusted EPS Guidance $8.73 to ~22% $8.80 FXN $8.37 to $8.44 (~5%) ~3% 9 to 10% $6.40 to (~1%) $6.47 FY15 BDX BDX Legacy Tax Rate Pension Operational FY16 Adjusted Estimated FY16 Adjusted Legacy Earnings Improvement Impact Accretion EPS FXN FX Impact EPS Guidance Guidance Growth Guidance  R

  17. Slide 17: FY 2016 Guidance

    FY 2016 Guidance FY 2015 Actuals FY 2016 Guidance Total Revenues – FXN 29.5% 24.5% to 25.0% Total Revenues – Rptd 22.0% 23.0% to 23.5% Medical Revenues – FXN 50.2% 36.0% to 36.5% Comparable Organic (1) 4.7% 4.5% to 5.0% Total Revenues – FXN (2) Comparable Medical Revenues – FXN 5.5% 4.5% to 5.0% Lif

  18. Slide 18: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President 18

  19. Slide 19: FY 2015 Product Launches

    FY 2015 Product Launches Medical Segment Program/Product Launch Date BD Intelliport™ Medication Management System • Launched Life Sciences Segment Program/Product Launch Date BD MAX™  Enteric Parasite • Launched WW  GC/CT and GC/CT/Trich • Launched EU BD Totalys™ • Launched EU BD FACSVia™ • Launch

  20. Slide 20: FY 2016+ Product Launches

    FY 2016+ Product Launches Medical Segment Program/Product Planned Launch Date BD Insulin Infusion Sets  FY 2016 Pyxis Mini  FY 2016 BD Simplist™ Prefilled Injectables  Heparin Sodium Injection, USP  FY 2016  Hydromorphone Hydrochloride Injection, USP  FY 2016 Life Sciences Segment Program/Prod

  21. Slide 21: Key Takeaways

    Key Takeaways  Successful close to a historic year for BD  Our core remains strong  Delivered revenue growth of 5.3% in conjunction with high quality, double-digit earnings growth  Expanded in two strategic areas: Medication Management and Genomics  Getting here today is a testament to all the

  22. Slide 22: Q&A

    Q&A BD, BD Logo and all other trademarks are the property of Becton, Dickinson and Company. 22

  23. Slide 23: Q4 FY 2015 & Q4 FY 2014 Adjustment Reconciliations

    Q4 FY 2015 & Q4 FY 2014 Adjustment Reconciliations (Unaudited; Amounts in millions, except per share data) Three Months Ended September 30, 2015 Selling and Research and Other Diluted Gross Administrative Development Acquisition- Operating Interest Expense, Income Tax Earnings Revenues Profit Expens

  24. Slide 24: Q4 FY 2015 Reconciliation of Reported Diluted EPS to Adjusted

    Q4 FY 2015 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Three Months Ended September 30, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2015 2014 Growth Translation Growth Growth % Growth % Reported Diluted Earnings per Share $ 0.84 $ 1.53 $ (0.69) $

  25. Slide 25: FY 2015 & FY 2014 Adjustment Reconciliations

    FY 2015 & FY 2014 Adjustment Reconciliations (Unaudited; Amounts in millions, except per share data) Twelve Months Ended September 30, 2015 Selling and Research and Other Diluted Gross Administrative Development Acquisition- Operating Interest Income, Income Tax Earnings Revenues Profit Expense Expe

  26. Slide 26: Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

    FY 2015 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Twelve Months Ended September 30, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2015 2014 Growth Translation Growth Growth % Growth % Reported Diluted Earnings per Share $ 3.35 $ 5.99 $ (2.64) $ (

  27. Slide 27: FY 2015 Guidance vs Actuals

    FY 2015 Guidance FY 2015 Guidance FY 2015 Actuals Total Revenues – FXN 28.5% to 29.0% 29.5% Total Revenues – Rptd 21.0% to 21.5% 22.0% Medical – FXN 48.5% to 49% 50.2% Comparable Organic ~4.5% 4.7% Total Revenues – FXN Life Sciences – FXN ~5% 5.0% Gross Profit 52.0% to 52.5% 51.9%(1) SSG&A ~25% 24.6

  28. Slide 28: Reconciliation - FX Impact Emerging Markets and China

    FY 2015 Reconciliation - FX Impact Emerging Markets and China (Unaudited; Amounts in millions) Three Months Ended September 30, % Change FY 2015 FY 2014 Reported FX Neutral FX Impact Total Emerging Markets Revenue $ 545 $ 582 -6.3% 5.9% -12.3% Total Emerging Markets Safety Revenue 122 129 -5.2% 10.0

  29. Slide 29: Reconciliation of Organic Revenue Growth

    FY 2015 & FY 2016 Reconciliation of Organic Revenue Growth Organic Revenues Growth Full Year Full Year Q1 Q2 Q3 Q4 FY2015 FY2016 (estimated) CareFusion Revenues, Reported 16.1% 3.0% (5.2%) 1.2% 3.3% ~2.0% FX Impact (1.4%) (2.4%) (3.2%) (2.8%) (2.5%) ~(0.5%) CareFusion Revenues, FXN 17.5% 5.4% (2.0%)

  30. Slide 30: FY 2016 Outlook Reconciliation

    FY 2016 Outlook Reconciliation FY2016 OUTLOOK RECONCILIATION FY2016 Outlook Revenues FX Impact FXN Basis Full Year FY2016 Estimated Growth on a Reported Basis 23.0% - 23.5% ~(1.5%) 24.5% - 25.0% Deferred Revenue Adjustment NM NM NM Adjusted Full Year FY2016 Estimated Growth 23.0% - 23.5% ~(1.5%) 24.

  31. Slide 31: Reconciliation – CareFusion Accretion on Adjusted Diluted EPS

    FY 2015 Reconciliation – CareFusion Accretion on Adjusted Diluted EPS FY2015 Reconciliation – CareFusion Accretion on Adjusted Diluted EPS Full Year FY2015 Adjusted FY2014 Fully Diluted Earnings per Share, BD Legacy $ 6.50 Adjusted FXN Growth 9.0 - 10.0% FX Impact (~10.5%) Adjusted FY2015 Fully Dilu

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