Slide 1: Third Quarter 2022 Earnings Release
DANAHER CORPORATION Third Quarter 2022 Earnings Release October 20, 2022
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: Third Quarter 2022 Performance Summary
Third Quarter 2022 Performance Summary ADJUSTED DILUTED NET REVENUE EARNINGS PER COMMON SHARE +6.0% +7.0% Core +10.0% Acquisitions +1.5% FX -5.5% $2.56 $7,229 $7,663 $2.39 Q3 2021 Q3 2022 Q3 2021 ($ millions) Q3 2022 Throughout this presentation, with respect to revenue performance, for the definiti
Slide 4: Third Quarter 2022 Performance Summary: Operating Profit Margin
Third Quarter 2022 Performance Summary OPERATING PROFIT MARGIN +820 BPS Core +50 bps Acquisitions -50 bps Other +820 bps 26.3% 18.1% Q3 2021 Q3 2022 Throughout this presentation when referred to in connection with operating profit margins, “Acquisitions” refers to the impact of businesses owned for
Slide 5: Third Quarter 2022: Life Sciences
Third Quarter 2022: Life Sciences REVENUE OPERATING PROFIT MARGIN +4.0% +90 BPS Core +8.0% Core +30 bps Acquisitions +2.5% Acquisitions -65 bps FX -6.5% Other +125 bps $3,776 26.8% 27.7% $3,632 Q3 2021 ($ millions) Q3 2022 Q3 2021 Q3 2022 5
Slide 6: Third Quarter 2022: Diagnostics
Third Quarter 2022: Diagnostics REVENUE OPERATING PROFIT MARGIN +9.5% +2,250 BPS Core +13.5% Core +60 bps Acquisitions +0.5% Acquisitions -45 bps FX -4.5% Other +2,235 bps $2,679 28.4% $2,449 5.9% Q3 2021 ($ millions) Q3 2022 Q3 2021 Q3 2022 6
Slide 7: Third Quarter 2022: Environmental & Applied Solutions
Third Quarter 2022: Environmental & Applied Solutions REVENUE OPERATING PROFIT MARGIN +5.0% +140 BPS Core +10.5% Core +135 bps FX -5.5% Acquisitions +5 bps $1,148 $1,208 22.3% 23.7% Q3 2021 ($ millions) Q3 2022 Q3 2021 Q3 2022 7
Slide 8: Guidance
GUIDANCE 8
Slide 9: Q&A
Q&A 9
Slide 10: DANAHER
DANAHER
Slide 11: Reconciliation of GAAP to Non-GAAP Financial Measures and Supplemental Information
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL INFORMATION THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 30, 2022 AND OCTOBER 1, 2021
Slide 12: Table of Contents
TABLE OF CONTENTS Page 1 Core Sales Growth by Segment and Base Business Core Sales Growth 2 Forecasted Core Sales Growth, Base Business Core Sales Growth and Adjusted Operating Profit Margin 3 Segment Sales, Operating Profit and Adjusted Operating Profit 4 Adjusted EBITDA and Adjusted EBITDA Margin
Slide 13: Core Sales Growth by Segment and Base Business Core Sales Growth
DANAHER CORPORATION Core Sales Growth by Segment and Base Business Core Sales Growth % Change Three-Month Period Ended September 30, 2022 vs. Comparable 2021 Period Segments Environmental & Total Company Life Sciences Diagnostics Applied Solutions Total sales growth (GAAP) 6.0 % 4.0 % 9.5 % 5.0 % Im
Slide 14: Forecasted Core Sales Growth and Adjusted Operating Profit Margin
DANAHER CORPORATION Forecasted Core Sales Growth, Base Business Core Sales Growth and Adjusted Operating Profit Margin 1 % Change Three-Month % Change Year Ending Period Ending December December 31, 2022 vs. 31, 2022 vs. Comparable Comparable 2021 2021 Period Period Flat to Core sales growth (non-GA
Slide 15: Segment Sales, Operating Profit and Adjusted Operating Profit
DANAHER CORPORATION Segment Sales, Operating Profit and Adjusted Operating Profit ($ in millions) Three-Month Period Ended Nine-Month Period Ended September 30, 2022 October 1, 2021 September 30, 2022 October 1, 2021 Sales (GAAP) Life Sciences $ 3,776 $ 3,632 $ 11,625 $ 10,912 Diagnostics 2,679 2,44
Slide 16: Adjusted EBITDA and Adjusted EBITDA Margin: Q3 2022
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended September 30, 2022 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 1,572 Interest, Net 33 Other Nonoperating (Incom
Slide 17: Adjusted EBITDA and Adjusted EBITDA Margin: Q3 2021
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended October 1, 2021 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 1,158 Interest, Net 59 Other Nonoperating (Income)
Slide 18: Adjusted EBITDA and Adjusted EBITDA Margin: Nine Months 2022
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Nine-Month Period Ended September 30, 2022 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 4,977 Interest, Net 135 Other Nonoperating (Incom
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin: Nine Months 2021
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Nine-Month Period Ended October 1, 2021 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 4,559 Interest, Net 172 Other Nonoperating (Income)
Slide 20: Other Non-GAAP Adjusted P&L Measures: Q3 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended September 30, 2022 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating
Slide 21: Other Non-GAAP Adjusted P&L Measures: Q3 2021
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended October 1, 2021 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating Op
Slide 22: Other Non-GAAP Adjusted P&L Measures: Nine Months 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended September 30, 2022 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common share operations calculation of from Gross profit Operating
Slide 23: Other Non-GAAP Adjusted P&L Measures: Nine Months 2021
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended October 1, 2021 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common share operations calculation of from Gross profit Operating Ope
Slide 24: 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 25: Other Non-GAAP Adjusted P&L Measures (footnotes continued)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) period uncertain tax positions. Discrete tax adjustments and other tax-related adjustments for the three-month period ended October 1, 2021, include the impact of net discrete tax benefits of $23 million
Slide 26: Adjusted Average Common Stock and Diluted Shares Outstanding
DANAHER CORPORATION Adjusted Average Common Stock and Common Equivalent Diluted Shares Outstanding (shares in millions) Forecasted Three-Month Three-Month Period Ended Nine-Month Period Ended Period Ending Year Ending September 30, September 30, December 31, December 31, 2022 October 1, 2021 2022 Oc
Slide 27: Year-Over-Year Core Operating Margin Changes: Three Months
DANAHER CORPORATION Year-Over-Year Core Operating Margin Changes from Continuing Operations Segments Environmental & Applied Total Company Life Sciences Diagnostics Solutions Three-Month Period Ended October 1, 2021 Operating Profit Margins from Continuing Operations (GAAP) 18.10 % 26.80 % 5.90 % 22
Slide 28: Year-Over-Year Core Operating Margin Changes: Nine Months
DANAHER CORPORATION Year-Over-Year Core Operating Margin Changes from Continuing Operations Segments Environmental & Applied Total Company Life Sciences Diagnostics Solutions Nine-Month Period Ended October 1, 2021 Operating Profit Margins from Continuing Operations (GAAP) 24.90 % 30.00 % 20.40 % 23
Slide 29: Free Cash Flow from Continuing Operations and Conversion Ratio
DANAHER CORPORATION Free Cash Flow from Continuing Operations and Free Cash Flow from Continuing Operations to Net Earnings from Continuing Operations Conversion Ratio ($ in millions) Three-Month Period Ended Nine-Month Period Ended Year-over-Year Year-over-Year September 30, 2022 October 1, 2021 Ch
Slide 30: 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 31: Statement Regarding Non-GAAP Measures (continued)
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 32: Supplemental Information and Quarter Highlights
DANAHER CORPORATION Supplemental Information and Quarter Highlights ($ in millions) Three-Month Period Ending Year Ending December 31, 2022 December 31, 2022 COVID-19 testing sales ~$375 ~$2,900 8 Impact of currency exchange rates on sales ~$(500) ~$(1,400) 9 Operating profit fall-through ~25.0% 10
Slide 33: DANAHER
DANAHER