Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — 40th Annual J.P. Morgan Healthcare Conference 2022
25 slides from Agilent Technologies's conference presentation, Jan 11, 2022
Slide 1: 40th Annual J.P. Morgan Healthcare Conference
Agilent Technologies 40th Annual J.P. Morgan Healthcare Conference Mike McMullen President and CEO January 11, 2022
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: 2021 Summary: Agilent Technologies
2021 Summary: Agilent Technologies $6.3B FY21 Revenue +15% FY21 Core Rev. Growth (1)(2) 25.5% FY21 Operating Margin (1) +32% FY21 EPS Growth (1) +$1.0B y/y +200bps y/y Leadership in Large ($65B+)(4) Mix Shifting to Higher Growth Global Footprint (3) and Growing End-Markets Pharma / Dx / Research Mar
Slide 4: Focusing on high-growth markets with our Build and Buy strategy
Focusing on high-growth markets with our Build and Buy strategy leveraging a strong core FY15 – 21 Reported CAGR(2) ~70% 7 $4.0B $5.3B $6.3B 8% OF $2.3B 6 0.8 43% revenue increase from growth focus areas, ( $ B ) services and consumables 5 0.6 2015 - 2021 2.2 9% 0.1 R E V E N U E 4 1.9 Bio-Pharma To
Slide 5: Agilent's Shareholder Value Creation Model
Agilent’s Shareholder Value Creation Model AbovezMarket Operating Margin Balanced Capital Growth Expansion Deployment Invest in business Innovation leader Agile Agilent business system Cash dividends Differentiated value proposition Productivity gains M&A focus prioritized on growth Global scale Rob
Slide 6: Agilent's Value Creation Model is Delivering
Agilent’s Value Creation Model is Delivering REVENUE OPERATING MARGIN EARNINGS PER SHARE 700+ 8% BPS 16% CAGR Expansion CAGR $6.3B $4.34 25.5% $4.0B 18.5% $1.74 FY15 FY21 FY15 FY21 FY15 FY21 Above Market Growth(1) Operating Margin Expansion(2)(3) Superior Earnings Growth(2) (1) Reported revenue grow
Slide 7: Balanced capital deployment successfully generating high returns for shareholders
Balanced capital deployment successfully generating high returns for shareholders M&A Dividends deployed paid $2.9B z since FY15 $1.3B z since FY15 8% of total revenue, Increasing dividends provide Growing at 20% in FY21 dependable returns Cap Ex Share Repurchases invested purchased $1.1B z since FY
Slide 8: Looking Forward, Accelerating the Momentum
Looking Forward, Accelerating the Momentum 8
Slide 9: Agilent's Build and Buy Growth Strategy
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Agilent’s Build and Buy Growth Strategy Accelerate our momentum in attractive market opportunities z z z Transform Gain Share Enter and Expand Analytical Lab Cancer Diagnostics & High Growth Markets
Slide 10: Opportunities in Key High Growth Markets
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Opportunities in Key High Growth Markets Targeted Build and Buy investments in high growth markets, and customer-focused innovation delivers market share gains Pharma Dx & Clinical Academic & Gov’t
Slide 11: Biopharma: Rapidly expanding segment within Pharma market
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Biopharma: Rapidly expanding segment within Pharma market addressing critical human health needs; Represents ~36% of our Pharma business today, up from 14% in FY15 Leveraging our positions across th
Slide 12: Leadership Position in Live Cell Analysis
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Leadership Position in Live Cell Analysis Broad Cell Cell Immunophenotyping Potency Imaging Cell Engineering Cell Culture Analysis quality testing expansion QA/QC Portfolio A strong portfolio playin
Slide 13: Leadership Position in Oligonucleotide CDMO
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Leadership Position in Oligonucleotide CDMO Compelling Market Winning Strategy Investing for Growth $0.8B+ 20%+ $225M+ 29% $315M $100M 2021 SAM(1) Market CAGR(2) FY21 Agilent Revenue FY15-21 CAGR 20
Slide 14: China: Key Accomplishments and Strategic Priorities
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers China: Key Accomplishments and Strategic Priorities China represents >20% ($1.3B) of Agilent’s FY21 revenue 38% 22% China Revenues by Market Pharma C&E 6% Dx&C 16% Food Key Accomplishments • FY21 Bi
Slide 15: Opportunities in Key Applied Markets
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Opportunities in Key Applied Markets Diversity of markets served lowers risk and increases leverage on core technology investments Chemical & Energy Food Env. & Forensics $5B TAM at 3-5% growth (1)
Slide 16: Chemical, Energy, and Advanced Materials Opportunity
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Chemical, Energy, and Advanced Materials Opportunity C&E spending outlook continues to be strong, and Agilent is helping to enable evolution of this market towards sustainable high-growth technologi
Slide 17: Agilent's Differentiated Capabilities
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Agilent’s Differentiated Capabilities Driving our Build and Buy Strategy z z z Transform Gain Share Enter and Expand Analytical Lab Cancer Diagnostics & High Growth Markets Genomics ▪ Innovation ▪ D
Slide 18: Driving a Customer-Focused, Enterprise Approach to Accelerate Growth
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers Driving a Customer-Focused, Enterprise Approach to Accelerate Growth Customer Satisfaction Agilent Ranked #2 2021 Wall Street Journal Management Top 250 Agilent Customer Experience Online and In-per
Slide 19: The One Agilent Culture and Team
Build and Buy Presence in High Applied Markets Strategic Strategy Growth Markets Opportunity Enablers The One Agilent Culture and Team A key competitive differentiator One Team Aligned and Energized Best-in-Class Engagement Customer Focused Agilent’s Success: Driven by Our Outstanding Team and Cultu
Slide 20: Q1'22 and FY22 Guidance and Forward-looking Considerations
Q1’22 and FY22 Guidance and Forward-looking Considerations As of Nov 22, 2021 based on Oct 31, 2021 exchange rates Q1’22 Guidance (1) FY22 Guidance (1) Low End High End Low End High End Net Revenue ($M) $1,640 $1,660 Net Revenue ($M) $6,650 $6,730 Y/Y Core Revenue Growth (2) 5.9% 7.2% Y/Y Core Reven
Slide 21: Agilent Trusted Answers
S-- Agilent Trusted Answers
Slide 22: Restated FY21 Segment Results
Restated FY21 Segment Results LSAG FY21 Actuals Old Org New Org Revenue $2,823 $3,663 Core Revenue Growth % 15.6% 14.8% Operating Profit 722 1,017 OM% 25.6% 27.8% ACG FY21 Actuals Old Org New Org Revenue $2,200 $1,360 Core Revenue Growth % 12.2% 12.2% Operating Profit 618 323 OM% 28.1% 23.8% DGG FY2
Slide 23: Reconciliations of Revenue Excluding Acquisitions and Divestitures
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 October 31, October 31, October 31, October 31, October 3
Slide 24: 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 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 Diluted EP
Slide 25: Reconciliation of Adjusted Non-GAAP Income From Operations
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 FY2021 Margin % FY2020 Margin % FY 2019 Margin % FY 2018 Margin % FY 2017 Ma
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