Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — 2023 J.P. Morgan Healthcare Conference
23 slides from Agilent Technologies's conference presentation, Jan 10, 2023
Slide 1: 2023 JP Morgan Healthcare Conference
2023 JP Morgan Healthcare Conference Agilent Presentation January 10, 2023 1 2023 J.P. Morgan Healthcare Conference
Slide 2: Safe Harbor Statement
Safe Harbor Statement These presentations contain forward-looking statements (including, without limitation, information, and future guidance on the company’s goals, priorities, revenue, revenue growth, earnings per share, operating margin, operating cash flow, capital expenditures, capital allocati
Slide 3: Overview of Agilent Technologies in 2022
Overview of Agilent Technologies in 2022 $6.8B FY22 Revenue +12% FY22 Core Rev. Growth (1)(2) 27.1% FY22 Operating Margin (1) +20% FY22 EPS Growth (1) +$0.5B y/y +160bps y/y Leadership in Large ($68B+)(4) Mix Shifting to Higher Growth Global Footprint (3) and Growing End-Markets Pharma / Dx / Resear
Slide 4: Agilent's shareholder value creation model driving strong revenue and earnings growth
Agilent’s shareholder value creation model driving strong revenue and earnings growth Above Market Operating Margin Balanced Capital z Growth Expansion Deployment 5 – 7% 50 bps to Continued balanced Core 100 bps deployment Expected Result: Double Digit EPS Growth 4 2023 J.P. Morgan Healthcare Confer
Slide 5: Our 'Build and Buy' growth strategy continues to deliver accelerating core growth and earnings per share
Our ‘Build and Buy’ growth strategy continues to deliver accelerating core growth and earnings per share Above Market Organic Growth(1) Operating Margin Expansion(2) Superior Earnings Growth(2) +15% YoY +12% YoY +32% YoY +20% YoY 8% core growth core growth 800+ 17% EPS growth EPS growth Reported BPS
Slide 6: Balanced capital deployment
Balanced capital deployment driving accelerated growth and high returns for shareholders Investing for Growth M&A Cap Ex z deployed z invested $3.0B since FY15 $1.3B since FY15 While Returning Capital to Shareholders Dividends Share Repurchases z z paid purchased $1.6B since FY15 $4.4B since FY15 6
Slide 7: Advancing ESG within our operations, and the world's labs
Advancing ESG within our operations, and the world’s labs Sustainability in Our Sustainable Lab Solutions Operations for Our Customers Committed to net-zero Green Instruments & Technology to Reduce Lab emissions by 2050 Product labeling Energy Use Engineered Our CrossLab Connect technology enables 3
Slide 8: A diversified and resilient business with multiple growth drivers
A diversified and resilient business with multiple growth drivers. 8
Slide 9: Investing in faster-growing Pharma and Clinical & Dx while taking advantage of secular growth trends
Investing in faster-growing Pharma and Clinical & Dx while taking advantage of secular growth trends in applied markets Agilent’s Chemicals & Clinical & Academic & Environmental Advanced Pharma Diagnostics Government & Forensics Materials Food $68B (1) Opportunity $21B $18B $13B $6B $5B $5B 5-7% gro
Slide 10: Building a more resilient business
Building a more resilient business increasing share of fast growing, recurring revenue Revenue Growth Revenue Mix GFC1 vs Pandemic How we Built Resiliency FY08 to FY22 Global GDP: Global GDP: $6B -1.3% -3.3% Spun off highly-cyclical 100% electronic measurement 16% business. Implemented CrossLab 22%
Slide 11: Services – A Key Differentiator for Agilent
Services – A Key Differentiator for Agilent A resilient and profitable growth engine that drives customer satisfaction CrossLab Group Revenue $1.5B $1.2B • Our best-in-class Customer Service Organization drives $0.8B customer satisfaction while scale enables continued margin expansion. • 60%+ of rev
Slide 12: Our Focus on Biopharma Is Paying Off
Our Focus on Biopharma Is Paying Off Now represents 39% of pharma business Agilent Biopharma Leveraging our positions Revenue across the biopharma value chain to expand offerings Disease Research, $1.0B Bioprocess Clinical Bioprocessing & Target ID, & Drug Development Trials Quality Control Agilent’
Slide 13: Leadership Position in Therapeutic Oligonucleotide CDMO
Leadership Position in Therapeutic Oligonucleotide CDMO Compelling Market Winning Strategy Investing for Growth now… $1B 20%+ ~$300M 29% $150M+ 2023 Market TAM (1) Market CAGR(2) FY22 Agilent Revenue FY15-22 CAGR New Revenue Capacity Oligo Tx CDMO Train B – Frederick, CO Manufacturing Forecast $2.4B
Slide 14: Announcing New NASD Capacity Expansion
Announcing New NASD Capacity Expansion On the road to $1B in revenue • Investing an estimated $725M in a new, state of the art, oligo production facility for Frederick – Trains C & D high volume siRNA, Antisense and Opening 2026/2027 CRISPR gRNA materials. • Doubles revenue capacity of NASD. Frederi
Slide 15: Cell Analysis – The "Buy" Side Is Working
Cell Analysis – The “Buy” Side Is Working Differentiated portfolio oriented towards growth $5B 5-7% $400M+ 15%+ Market TAM (1) Market Growth (1) FY22 Agilent Revenue FY20-22 CAGR Targeting Key High-growth Segments How We Win Portfolio Breadth Immunology, Live-cell kinetic measurement plus Immuno-onc
Slide 16: Advanced Materials: A Secular $1.5B+ High-Growth Market
Advanced Materials: A Secular $1.5B+ High-Growth Market (1) Leveraging leadership in Spectroscopy and Gas Chromatography Semiconductors Batteries Global demand for LiB 3,100 GWh Electric Vehicles Other 200 GWh 2019 2021 2023 2025 2028 2030 • Agilent’s portfolio addresses the entire battery • Trade t
Slide 17: PFAS – An Emerging Public Health Challenge
PFAS – An Emerging Public Health Challenge Growing regulation of “Forever” chemicals drives testing demand PFAS Market Opportunity The Preferred PFAS Solution ~15% Military Bases $0.2B+ Market CAGR SAM Opportunity Petroleum Plants Appliance Plants PFAS Sources Automotive • Our pre-configured workflo
Slide 18: Q1'23 and FY23 Guidance and Forward-looking Considerations
Q1’23 and FY23 Guidance and Forward-looking Considerations Q1’23 Guidance (1) FY’23 Guidance (1) Low End High End Low End High End Net Revenue ($M) $1,680 $1,700 Net Revenue ($M) $6,900 $7,000 Y/Y Core Revenue 6.8% 8.0% Y/Y Core Revenue 5.0% 6.5% Growth (2) Growth (2) Assumes -6.6% FX, Assumes -4.3%
Slide 19: In Summary
In Summary Agilent has… o …a diversified and resilient business o with multiple growth drivers in fast growing markets o driven by an Agilent team focused on our customers with a proven track record of success and unmatched execution capabilities. We will continue… o …to prioritize investments for g
Slide 20: 2023 J.P. Morgan Healthcare Conference
20 2023 J.P. Morgan Healthcare Conference
Slide 21: Reconciliations of Revenue Excluding Acquisitions and Divestitures and Currency (Core)
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING ACQUISITIONS AND DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended October 31, October 31, October 31, October 31
Slide 22: 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) FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS Net income Di
Slide 23: Reconciliation of Adjusted Non-GAAP Income from Operations and Operating Margins
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating Operating Operating Operating Operating Operating Operating Operating FY 2022 Margin % FY 2021 Margin % FY 2020 Margin % FY 2019 Margin
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