Ge Healthcare Technologies Inc. · NASDAQ:GEHC
Ge Healthcare Technologies — Investor Day (December 2022)
116 slides from Ge Healthcare Technologies's investor day presentation, Dec 8, 2022
Slide 1: Investor Day | December 8, 2022
Investor Day | December 8, 2022
Slide 2: Today's Agenda
Today’s Agenda Opening Remarks Larry Culp, Chairman of the Board Vision & Strategy for Long-Term Value Creation Peter Arduini, CEO Imaging Jan Makela, Imaging CEO Ultrasound Roland Rott, Ultrasound CEO Patient Care Solutions Thomas Westrick, Patient Care Solutions CEO Pharmaceutical Diagnostics Kevi
Slide 3: Disclaimer
Disclaimer This presentation contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “ta
Slide 4: Opening Remarks
Opening Remarks Larry Culp Chairman of the Board
Slide 5: Catalyst Moment
Catalyst Moment Greater focus and Team alignment ... Enhanced capital accountability to dedicated talent, allocation and serve patients Board of strategic flexibility and customers Directors, and investors © 2022, General Electric Company. Proprietary information. All rights reserved. 5
Slide 6: Experienced and Diverse Board of Directors
Experienced and Diverse Board of Directors LARRY CULP PETER ARDUINI DR. RODNEY F. LLOYD W. HOWELL, JR. DR. RISA LAVIZZO- HOCHMAN MOUREY Chairman & CEO, GE; CEO, GE HealthCare CFO and Treasurer of CEO, GE Aerospace President and CEO of Booz Allen Hamilton Former CEO of the Robert Providence St. Josep
Slide 7: Highly Qualified Leadership Team Driving Growth
Highly Qualified Leadership Team Driving Growth • Strong track record of growth, innovation and operational execution • Extensive industry and customer knowledge • Deep experience in healthcare and M&A Focused Company Driving Precision Care, Well-positioned To Create Significant Value © 2022, Genera
Slide 8: Vision and Strategy for Long-Term Value Creation
Vision and Strategy for Long-Term Value Creation Peter Arduini CEO
Slide 9: Create a world where healthcare has no limits
Create a world where healthcare has no limits 9
Slide 10: Accomplished Leadership Team with Strong Track Record
Accomplished Leadership Team with Strong Track Record PETER JAN ROLAND TOM KEVIN CATHERINE ROB YIHAO ELIE ARDUINI MAKELA ROTT WESTRICK O'NEILL ESTRAMPES WALTON ZHANG CHAILLOT CEO CEO, Imaging CEO, Ultrasound CEO, PCS CEO, PDx CEO, USCAN CEO, EMEA CEO, China CEO, Intercon’tl HELMUT BETTY FRANK MIKE L
Slide 11: Clear Path to Accelerate Long-Term Shareholder Value
Clear Path to Accelerate Long-Term Shareholder Value Driving Growth Mid-single digit Organic Revenue Global Leader Executing on Increased Growth* in Attractive, Precision Care Focus and High-teens to 20% Growing Market Strategy Agility Adj. EBIT Margin* Strong Free Cash Flow* Generation Disciplined
Slide 12: Clear Path to Accelerate Long-Term Shareholder Value
Clear Path to Accelerate Long-Term Shareholder Value Driving Growth Mid-single digit Organic Revenue Global Leader Executing on Increased Growth* in Attractive, Precision Care Focus and High-teens to 20% Growing Market Strategy Agility Adj. EBIT Margin* Strong Free Cash Flow* Generation Disciplined
Slide 13: Leader in Attractive, Growing Global Market
Leader in Attractive, Growing Global Market Global Leader in Attractive, Growing Market $84 billion ~$100 billion Total Addressable Market Estimated by 2025 in 2021 Global trends: Aging population Demand for insights & productivity Alternative sites of care Attractive Growth Markets with Potential t
Slide 14: Leadership Positions in All Four Business Segments
Leadership Positions in All Four Business Segments Global Leader in Attractive, Growing Market Patient Care Pharmaceutical Imaging Ultrasound Solutions (PCS) Diagnostics (PDx) Industry Size ’21-a) $44B $12B $18B $10B Industry CAGR ’22-’25-a) 4-6% 4-7% 3-6% 4-5% Attractive End Markets Support Strong
Slide 15: GE HealthCare's Extensive Reach at a Glance
GE HealthCare’s Extensive Reach at a Glance Global Leader in Attractive, Growing Market Annual R&D Patients Revenue & product 1B+ served annually ~$1B investment $18B (~50% recurring-a)) spend Customer- AI-enabled device Installed 4M+ base 18.5K facing employees 42 authorizations in U.S., top of rec
Slide 16: At the Forefront of Care Delivery Across the Patient Journey
At the Forefront of Care Delivery Across the Patient Journey Global Leader in Attractive, Growing Market Prevention/Screening Diagnosis Treatment Monitoring Hospitals | Ambulatory Surgery Centers | Outpatient Clinics | Physicians’ Offices | Home Improving Patient Outcomes & Customer Productivity Wit
Slide 17: Clear Path to Accelerate Long-Term Shareholder Value
Clear Path to Accelerate Long-Term Shareholder Value Driving Growth Mid-single digit Organic Revenue Global Leader Executing on Increased Growth* in Attractive, Precision Care Focus and High-teens to 20% Growing Market Strategy Agility Adj. EBIT Margin* Strong Free Cash Flow* Generation Disciplined
Slide 18: Bridging Data and Technology to Deliver Insights
Bridging Data and Technology to Deliver Insights Precision Care leverages a patient’s Images Precision Diagnostics unique data via Multi-modal Data multi-modal sources Pathology to determine the most Precision appropriate treatment Patient Therapy and deliver the best Genomics possible outcome Preci
Slide 19: Uniquely Positioned to Enable Precision Care
Uniquely Positioned to Enable Precision Care Executing on Precision Care Strategy EdisonTM Digital Health Platform Delivering Precision Care Enterprise Driving productivity Department and recurring revenue Device Sole Global MedTech Player With Equipment + Digital + Imaging Agents © 2022, General El
Slide 20: Our Approach to Delivering Precision Care
Our Approach to Executing on Precision Care Strategy Delivering Precision Care 3 D Smart Devices Disease States Deliver Digital Platform Precision Care © 2022, General Electric Company. Proprietary information. All rights reserved. 20
Slide 21: New Product Introductions Driving Growth
New Product Introductions Driving Growth Introduced ~40 New Products at RSNA 2022 Executing on Precision Care Strategy Indicates AI integration Omni Legend (PET / CT) Portrait Revolution SIGNA™ Mobile-a) Voluson Apex (1.5 and 3T) Expert 22 OEC 3D CT Motion End-tidal Vscan Air Vivid AIRTM Control Inj
Slide 22: Care Pathway Strategy Enables Precision Care
Care Pathway Strategy Enables Precision Care AI-powered CDS Suite MAC 2000 Executing on Precision Care Strategy Cardiology Example CARESCAPE™ MyoSPECT Myoview RPM EdisonTM –a) VividTM Allia™ IGS Revolution™ Apex We Play Across the Care Continuum (a- Technology in Development - not a commercial produ
Slide 23: Creating an Open Health Care Ecosystem
Creating an Open Health Care Executing on Precision Care Strategy Ecosystem with Integrated GEHC AI/ML Network Effect Imaging Fabric Engine EdisonTM Digital Third-Party Development Vendor & Data Health Platform Platform Integration Connected Open Digital Platform to Drive Better Care Leading Pathway
Slide 24: Higher Commercial and R&D Spend to Drive Growth
Higher Commercial and R&D Spend to Drive Growth Executing on Precision Care Strategy Prioritizing Fastest-Growing Areas Est. CAGR ‘22–‘25 Premium CT / PCCT ~10%-b) $1B+ 2022E R&D Cardio / 3-D Image-guided Therapies ~15% Driving Organic Handheld Ultrasound ~20% Revenue ~$1B+ Growth* & Oncology MI / T
Slide 25: External Investments to Enhance Precision Care Strategy
External Investments to Enhance Precision Care Strategy Executing on Precision Care Strategy ACQUISITIONS Photon-Counting Tech Surgical Visualization Oncology and Neurology Adding new Goal to make treatment Expanding into Capitalizing on capabilities faster and more precise adjacencies emerging tren
Slide 26: Clear Path to Accelerate Long-Term Shareholder Value
Clear Path to Accelerate Long-Term Shareholder Value Driving Growth Mid-single digit Organic Revenue Global Leader Executing on Increased Growth* in Attractive, Precision Care Focus and High-teens to 20% Growing Market Strategy Agility Adj. EBIT margin* Strong Free Cash Flow* Generation Disciplined
Slide 27: Unique Culture Supports our Priorities for Growth
Unique Culture Supports our Priorities for Growth Increased Focus and Agility Building Serve Our People, Patients, & Our Winning Customers Culture Lead with Lean Empower Entrepreneurial Spirit Deliver The Future of Healthcare Positioning our culture to enable success for Win Together our customers,
Slide 28: Optimizing our Operating Model as a Standalone Company
Optimizing our Operating Model as a Standalone Company Increased Focus and Agility Four Focused & Integrated Segments: Patient Care Pharmaceutical Imaging Ultrasound Solutions (PCS) Diagnostics (PDx) Enterprise Account Management, Service Delivery Global Digital Platform Simplified, Customer-centric
Slide 29: Committed to Enhancing Our ESG Strategy
Committed to Enhancing Our ESG Strategy Increased Focus and Agility Environment • Goal to reduce emissions by 50% by 2030-a) Five Focus Areas and Climate • Net zero by 2050 1 Access to healthcare • 31% of leadership female-b) 2 Climate impact & resilience Social • 27% ethnically diverse-c) Capital 3
Slide 30: Clear Path to Accelerate Long-Term Shareholder Value
Clear Path to Accelerate Long-Term Shareholder Value Driving Growth Mid-single digit Organic Revenue Global Leader Executing on Increased Growth* in Attractive, Precision Care Focus and High-teens to 20% Growing Market Strategy Agility Adj. EBIT Margin* Strong Free Cash Flow* Generation Disciplined
Slide 31: Executing on Clear Growth and Margin Drivers
Executing on Clear Growth and Margin Drivers Growth Drivers Margin Drivers • Enhanced commercial execution and capabilities • Higher-margin products from innovation • NPIs and commercial investments • Strategic pricing and mix, including software • Digital platform / AI and SaaS solutions • Lean-dri
Slide 32: Long-Term Value Creation Framework
Long-Term Value Creation Framework Driving Growth Disciplined MSD Organic Capital Allocation Revenue Growth* Strong FCF* Generation Strong financial position Shareholder Investment in Value Adj EBIT Margin Organic growth Creation Expansion Investment in High-teens to M&A 20%* *Non-GAAP Financial Mea
Slide 33: Imaging
Imaging Jan Makela Imaging CEO
Slide 34: Key Takeaways
Key Takeaways ✓ Well-positioned to capitalize on future growth with robust NPI pipeline in growth industries ✓ Recurring revenue, underpinned by services: ~50% of total GE HealthCare revenue ✓ Large, global installed base with growing fleet enterprise solutions, data integration and digital sales ✓
Slide 35: Imaging at a Glance
Imaging at a Glance $44B-a) One of largest Global End Leadership global installed Markets positions in bases of nearly all Estimated addressable 400K markets medical imaging CAGR of devices 4-6%-b) $9,433M -c) Revenue 8,500 200+ field service Software engineers-d) applications 13.1%-c) Segment EBIT
Slide 36: Attractive End Market Trends Driving Growth
Attractive End Market Trends Driving Growth Estimated End Markets New Procedures and Growing Healthcare Demand Driving Imaging Markets $44B end markets: 4-6% CAGR-a) Increasing penetration of imaging technologies in diagnosis -b) $53B $44B Growth in broad-based population screening programs d Tech /
Slide 37: Industry-Leading Imaging Solutions
Industry-Leading Imaging Solutions FINANCIAL Bone & Industry-a) Growth-b) Metabolic Health CARE PATHWAYS SERVICES X-Ray CT MI & CT ~$8B ~3-5% Ultrasound EDUCATION & Image-Guided TRAINING Systems MR ~$6B ~5-7% BETTER ENTERPRISE IM AGING SOLUTIONS SOLUTIONS H E ALT H DIGITAL F O R AL L SOLUTIONS Surgi
Slide 38: Redefining What is Possible with CT
Redefining What is Possible with CT Trends Increasing CT Demand Helping Our Healthcare Providers Population-based screening programs Broad CT portfolio • Low-dose Lung & Colorectal cancer screening • From industry-leading cardiac CT to high- • Long Covid screening throughput value models • Improving
Slide 39: MR: Making the Complex Simple and Accessible to All
MR: Making the Complex Simple and Accessible to All Trends Increasing MR Demand Upgradeability, Accessibility, Quality, Speed Radiomics (quantitative MRI) & AI Fast images & better quality • Fueling research in neuroscience & oncology • AIR™ Recon DL, using Deep-Learning to remove image noise in raw
Slide 40: Surgical Imaging Leadership
Surgical Imaging Leadership Surgical Shift Translating to Growth Precision And Efficiency Of OEC 3D Active aging population • Leading to growth in orthopedic procedures OEC 3D & 3D (hip, knee & shoulder) Volume Viewer Dramatic expansion of procedure types Saves OR time • Growth beyond hospitals at l
Slide 41: Unique Portfolio Across Molecular Medicine
Unique Portfolio Across Molecular Medicine Increased Activity in Nuclear Medicine (NM) The Future of Molecular Imaging (MI) is Personal Total MI for Theranostics – GE’s comprehensive & industry-leading solution Cancer: #2 cause of death globally 62%-a) surge in cancer incidence TracerCenter FASTlab
Slide 42: Precision Care in the Oncology Care Pathway with D3
Precision Care in the Oncology Care Pathway with D3 Disease State: Prostate Cancer Patient Symptoms/ Treatment Therapy/ Diagnosis Staging Follow Up Journey Screening Planning Monitoring SignaTM Artist MR SignaTM Architect MR LOGIQTM E10 StarGuideTM SPECT/CT LOGIQTM E10 LOGIQTM Ultrasound Omni Legend
Slide 43: Unmatched Customer Experience Through Services
Unmatched Customer Experience Through Services Comprehensive World-class Service Offering-a) The Predictive Customer Experience ~50% Total 2021 Recurring Revenue Ability for Customers Multivendor Repair ~35% Digital Service Fix to Reach GEHC 24x7 Capabilities +4.5 Days Per Year of Increased Uptime-b
Slide 44: Imaging Historical Financial Summary
Imaging Historical Financial Summary Revenue Key Drivers P Customer Insights Driving Innovation Service Revenue $9.1B $9.0B $9.4B $7.0B $7.3B 2019A 2020A 2021A 2021 Q3 YTD 2022 Q3 YTD P Edison-enabled AI & Connectivity Segment EBIT Margin P Large Installed Base with Upgrades & Service 13.2% 13.1% 13
Slide 45: Strong Visibility to EBIT Margin Expansion
Strong Visibility to EBIT Margin Expansion High-teens ~10-13% Recent Historical NPIs Commercial Supply Chain, Enterprise Fleet Medium-term Segment EBIT Execution VCP & Solutions & Target Margin Range Platforming Digital © 2022, General Electric Company. Proprietary information. All rights reserved.
Slide 46: Our Growth Strategies to Drive Long-Term Success
Our Growth Strategies to Drive Long-Term Success Broaden Portfolio Deliver Expand Focus Leadership Across Industry-Leading Digital / AI Capabilities On Execution Care Pathways Service Capabilities with EdisonTM © 2022, General Electric Company. Proprietary information. All rights reserved. 46
Slide 47: Ultrasound
Ultrasound Roland Rott Ultrasound CEO
Slide 48: Key Takeaways
Key Takeaways ✓ GEHC defining the category for over 25 years ✓ Mid-single digit growing end markets with recent expansion into high-single digit adjacencies ✓ Care pathways, AI & digital innovation spearhead future growth ✓ Strong margin profile through scale/value creation © 2022, General Electric
Slide 49: Ultrasound at a Glance
Ultrasound at a Glance $12B-a) Global Large global Leadership End Markets installed base of position in nearly all addressable ~400K markets Industry CAGR of devices -b) ~4-7% $3,172M-a) >600M Revenue 75K+ customers in Ultrasound on-line customer exams 27.9%-a) communities performed Segment EBIT ann
Slide 50: Mid-Single Digit Industry with High-Growth Adjacencies
Mid-Single Digit Industry with High-Growth Adjacencies Estimated End Markets-a) Strong Demand for Real-Time Radiation-Free Cost-Effective Imaging $12B end markets: ~4-7% CAGR-b) Compelling diagnostic capabilities and large installed base $15B-c) Accelerating industry expansion and adoption of therap
Slide 51: Industry-Leading Ultrasound Portfolio
Industry-Leading Ultrasound Portfolio Spanning the Continuum of Care Including Screening-a), Diagnosis, Treatment and Follow-up New Growth Areas Radiology and Women’s Point of Care & Surgical Primary Care Cardiovascular Health Handheld Visualization & Guidance Industry-b) ~$3B ~$1B ~$1B ~$1B ~$1B Es
Slide 52: 25+ Years of Category Defining Innovation
25+ Years of Category Defining Innovation 1990s: 3D Fetal Ultrasound 2022: Real time 4D “ I can do my diagnosis much faster, more detailed, and I get better images, a lot better images. Therefore, I can see anomalies or have the impression that I don't miss anything I might have missed some years ag
Slide 53: Productivity Potential of AI in Ultrasound
Productivity Potential of AI in Ultrasound From: 1-2 minutes To: 10 seconds with the help of AI Artificial Intelligence Implementation Enhancing Workflows and Expanding User Bases © 2022, General Electric Company. Proprietary information. All rights reserved. 53
Slide 54: Automation & AI – Opening Up New Markets
Automation & AI – Opening Up New Markets bkActiv Vscan Air Voluson Expert 22 Empowering Smarter Surgery See More, Treat Faster Healthier Future for Women ~50K Neurosurgeons >1.1M Primary Care Physicians >252M pregnancies per year >235K General Surgeons Driving Enterprise Productivity While Improving
Slide 55: Compounding Value Through AI & Digital Innovation
Compounding Value Through AI & Digital Innovation Reporting & Workflow • Empowers clinicians by optimizing workflow • Provides comprehensive patient information Care Team Collaboration • Extends the care team with remote support • Connects users in real-time Fleet Management • Enables control of fle
Slide 56: Ultrasound Historical Financial Summary
Ultrasound Historical Financial Summary Revenue Key Drivers $3.2B $2.8B $2.7B $2.5B P Leading Position & Trusted Brand $2.3B 2019A 2020A 2021A 2021 3Q YTD 2022 3Q YTD P Global Distribution & Service Presence Segment EBIT Margin P Innovating Smart Devices & Digital Solutions 27.9% 26.7% 25.3% 23.4% 2
Slide 57: Growth Strategies Driving Long-Term Success
Growth Strategies Driving Long-Term Success Grow Leadership Expand into Broaden Digital Revenue Position Through Attractive Capabilities and Expansion Innovation & Adjacencies Ecosystem in through Value Commercial Intensity Ultrasound Creation & Scale © 2022, General Electric Company. Proprietary in
Slide 58: Patient Care Solutions
Patient Care Solutions Thomas Westrick Patient Care Solutions CEO
Slide 59: Key Takeaways
Key Takeaways ✓ Decades of clinical innovation & trusted solutions ✓ Ubiquitous, clinically excellent, monitoring solutions portfolio ✓ Growing digital solutions with clinical decision support ✓ Mature markets, mid-single-digit growth, with high-growth adjacencies © 2022, General Electric Company. P
Slide 60: Patient Care Solutions at a Glance
Patient Care Solutions at a Glance $18B-a) Every 0.2 seconds Clinical solutions Global End anesthesia delivered on a GEHC solution providing real- Markets time data, insights & Estimated support CAGR of $2,915M -c) 12.2%-c) Segment 3-6%-b) Revenue EBIT Margin Industry-leading 100M positions in Large
Slide 61: Strong Portfolio to Address Patient Care Needs
Strong Portfolio to Address Patient Care Needs Monitoring & Stabilize & Triage Surgical Care Critical Care Observation Monitoring Solutions ✓ ✓ ✓ ✓ Real-time Anesthesia & Respiratory critical care Care ✓ ✓ ✓ insights, visualization and decision Diagnostic Cardiology ✓ ✓ ✓ ✓ support tools Maternal In
Slide 62: Solving for Today's Healthcare Challenges
Solving for Today’s Healthcare Challenges Estimated End Market Sizes-a) Numerous Macro Trends … Aging, clinically complex population $18B end markets: 3-6% CAGR-b) Digital solutions growing +10% Clinician shortages $21B -c) Inflationary pressure stressing healthcare viability $18B … Leading To Multi
Slide 63: Innovating to Meet Customer Need
Innovating to Meet Customer Need Industry Firsts Innovation Pipeline Command Center Major NPI (Innovation) Near-Term Major NPI Launches Other Programs (Iterations) 2022 2023 2024 2025 Monitoring & Digital Solutions MUSE EKG Management Anesthesia & Respiratory Diagnostic Cardiology Accelerating Innov
Slide 64: Improving Outcomes with Monitoring & Digital Solutions
Improving Outcomes with Monitoring & Digital Solutions Monitoring Solutions Digital Applications Recently Launched Clinical Workflow Enhancements FlexAcuity Offerings Post-Acute Monitoring Digital Centralized MURAL Data Platform Monitoring Powered by Edison™ Health Services Wearable, wireless Flexib
Slide 65: Enhancing Health Systems Workflows
Enhancing Health Systems Workflows Command Center Actionable Information Across Care Settings ✓ Capacity management ✓ Improved patient transitions ✓ Reduction of unnecessary transfers ✓ Reduction of length of stay Customer Value “What we were able to do in real-time, is understand where our beds wil
Slide 66: PCS Historical Financial Summary
PCS Historical Financial Summary Revenue Key Drivers $3.7B P Increasing Innovation to Maintain and Advance $2.7B $2.9B Clinical Excellence $2.2B $2.1B 2019A 2020A 2021A 2021 Q3 YTD 2022 Q3 YTD P Increasing the Use of Data at Scale to Advance Clinical & Operational Workflow Solutions Segment EBIT Mar
Slide 67: Visible Path to EBIT Margin Expansion
Visible Path to EBIT Margin Expansion High-teens ~10-12%-a) Recent Historical NPIs & Price & VCP & Digital Medium-Term Segment EBIT Services Commercial Platforming Target Margin Range Execution (a - Excludes 2020 due to COVID impact © 2022, General Electric Company. Proprietary information. All righ
Slide 68: Our Growth Strategies to Drive Long-Term Success
Our Growth Strategies to Drive Long-Term Success Increase Innovation Drive Digital Solutions that Improve Margin Focus Across Portfolio Improve Patient Outcomes Through Services & On Execution and Productivity Consumables Growth © 2022, General Electric Company. Proprietary information. All rights r
Slide 69: Pharmaceutical Diagnostics
Pharmaceutical Diagnostics Kevin O'Neill Pharmaceutical Diagnostics CEO
Slide 70: Key Takeaways
Key Takeaways ✓ Global leader in Precision Diagnostics with an industry-leading injectable pharmaceutical portfolio in contrast media and molecular imaging ✓ Driving innovation through funnel of new products and improving customer productivity ✓ Strong financial profile buoyed by recurring revenues
Slide 71: Pharmaceutical Diagnostics at a Glance
Pharmaceutical Diagnostics at a Glance Products used in over -a) $10B-a) 100M Global patient procedures End Markets 7 cGMP-c) Equivalent to Manufacturing Sites Industry CAGR of 3 patient procedures every ~4-5%-b) second $2,018M-a) 8 Only imaging Pre-clinical or clinical Revenue provider that also pi
Slide 72: Recurring Consumables Revenue, Mid-Single Digit Growth
Recurring Consumables Revenue, Mid-Single Digit Growth Estimated End Markets Tailwinds Driving Demand In Attractive End Markets $10B end markets: 4-5% CAGR-a) Demand for innovative therapies & precision diagnostics Growth in contrast media utilization $12B-b) $10B Aging populations and chronic disea
Slide 73: Pharmaceutical Diagnostics and What We Do
Pharmaceutical Diagnostics and What We Do Administered to Patient, Amplified Diagnostic Images Enhanced Clinical Decisions Image Captured Contrast Media-a) Structural Imaging Focus Molecular Imaging-b) Functional Imaging Focus Enabling Better Patient Outcomes (a - X-ray, CT, MR, Interventional, and
Slide 74: Diagnostic Agent Portfolio with Industry-wide Compatibility
Diagnostic Agent Portfolio with Industry-wide Compatibility Contrast Media Molecular Imaging Why We Win in PDx Injectable agents used to improve Radioactive tracers used in SPECT visualization and diagnostic value of scans & PET procedures Industry-a) ~$5B ~$5B 1 Continued innovation across Estimate
Slide 75: Contrast Media: Grow Capacity and Innovate
Contrast Media: Grow Capacity and Innovate Iodinated (X-Ray) Contrast Media Capacity Expansion Strategy to Drive Growth ✓ Demand for iodinated contrast media to double over next decade-a) ✓ Expansion of existing API and fill-finish sites; Lean driving productivity ✓ Capacity investment and pricing i
Slide 76: Molecular Imaging: Growth in Key Care Areas
Molecular Imaging: Growth in Key Care Areas Leading position in Neurology Building out Oncology platform Innovating in Cardiology Parkinson’s prevalence is expected Breast cancer represents Coronary artery disease is the to double to ~14M by 2040 30% of female cancer leading cause of death globally
Slide 77: Pharmaceutical Diagnostics: Pipeline
Pharmaceutical Diagnostics: Pipeline MARKETING CARE AREA PROGRAM PRECLINICAL PHASE 1 PHASE 2 PHASE 3 AUTHORIZATION Gd MR Radiology Non-Gd MR Dopamine transporter PET Neurology Dopamine transporter SPECT Cardiology Myocardial perfusion PET Estrogen receptor PET Oncology Her2 receptor PET Immuno-Diagn
Slide 78: Pharmaceutical Diagnostics Historical Financial Summary
Pharmaceutical Diagnostics Historical Financial Summary Revenue Key Drivers $2.0B $2.0B P Growing Procedural Demand Over Next Decade $1.8B $1.5B $1.5B P Rise of Molecular Imaging 2019A 2020A 2021A 2021 3Q YTD 2022 3Q YTD Segment EBIT Margin P Strong Recurring Revenue and Margins 34.9% 36.5% 34.3% 28
Slide 79: Our Growth Strategies to Drive Long-Term Success
Our Growth Strategies to Drive Long-Term Success Expand Capacity Commercial Increased R&D Capitalize on to Meet Growing Execution Reflecting Investment in New Attractive Growth Demand Product Value Imaging Agents Adjacencies © 2022, General Electric Company. Proprietary information. All rights reser
Slide 80: Commercial Strategy & Execution
Commercial Strategy & Execution Catherine Estrampes U.S. & Canada CEO
Slide 81: Key Takeaways
Key Takeaways ✓ Trusted partner: strong customer relationships, providing a platform for sustainable growth ✓ Unique customer value proposition: innovative products, technologies, services and solutions ✓ Regional scale: rely on global capabilities to solve complex problems for our customers locally
Slide 82: Trusted Partner With Strong Global Presence
Trusted Partner With Strong Global Presence 2021 GE HealthCare Revenue 4M+ Installed Base >10,000 US & Canada Global Sales Force EMEA $7.4 billion $4.5 billion China region $2.7 billion 1,500 Channel Partners 8,500 Field Engineers R&D Presence Intercontinental 1,800 $3.0 billion Clinical Application
Slide 83: Unique Value Proposition to Customers
Unique Value Proposition to Customers Deep customer relationships • Rely on GEHC for mission-critical capabilities Tailored regional execution • Multi-channel commercial model Technology leader • Long-standing delivery of industry-defining innovations Solutions partner • Full suite of digital, AI an
Slide 84: Regional Teams Deliver Solutions at Scale to Customers
Regional Teams Deliver Solutions at Scale to Customers Customer Needs GE HealthCare Customer Team - Care Pathway - Product Sales ✓ Addressing labor challenges Specialists Specialists Digital and ✓ Improving patient throughput Data Science Specialists - Clinical Application ✓ Navigating capital decis
Slide 85: Innovating with HCA to Improve Clinical Experience Care
Innovating with HCA to Improve Clinical Experience Care DIGITAL & CLINICAL TRANSFORMATION 35M Annual Patient Encounters CLINICAL EXPERIENCE 2,500 Sites of Care MODERNIZING WORKFLOW 25-year Partnership Supports Commitment to Care and Improvement of Human Life © 2022, General Electric Company. Proprie
Slide 86: GE HealthCare
GE HealthCare
Slide 87: Financial Strategy
Financial Strategy Helmut Zodl CFO
Slide 88: Our Financial Strategy
Our Financial Strategy 2 3 Delivering Optimizing Sustainable, High- Business Quality Performance Through Lean Driving Growth Mid-single Digit Organic Revenue Growth* High-teens to 20% Aligning Accelerating Adj. EBIT Margin* Capital 1 Innovation & Driving Growth Strong Free Cash Flow* Generation Allo
Slide 89: Accelerating Innovation & Driving Growth
Accelerating Innovation & Driving Growth Accelerating Innovation & Driving Growth Revenue Growth Growth Drivers *-a) Customer Demand and Industry Growth MSD% New Product Introductions and Digital Solutions 3% Enhanced Commercial Execution + Increased R&D Spending 2019A - 2021A Medium-term CAGR Targe
Slide 90: Investing in R&D to Drive Growth and Margin
Investing in R&D to Drive Growth and Margin Accelerating Innovation & Driving Growth Key Actions Increase Pace of NPIs at Higher Gross Margins $1B+ 2022E R&D Expand Digital / AI Capabilities Optimize Product Platforms 35%+ NPI vitality-a) c Portfolio / R&D Prioritization Process Allocating R&D to Hi
Slide 91: Commercial Execution Delivering Mid-Single Digit Growth
Commercial Execution Delivering Mid-Single Digit Growth Accelerating Innovation & Driving Growth Q3 YTD Organic Revenue Growth* of 6% Market Position Revenues by Segment Organic Revenue Growth* v Largest Global Installed Base $13.0B $13.4B $1.5B $1.5B 2% Care Across the Patient Journey $2.2B $2.1B (
Slide 92: Delivering Sustainable, High-Quality Performance
Delivering Sustainable, High-Quality Performance Delivering Sustainable, High-Quality Performance Recurring Revenue-a) Key Drivers Lifecycle Services Pharmaceutical Diagnostics ~50% Digital Solutions and Software c++ Consumables and Value-Added Offerings Recurring Non-Recurring Significant Recurring
Slide 93: Optimizing Business Through Lean
Optimizing Business Through Lean Optimizing Business Through Lean Adjusted EBIT Margin* Implementing Lean to Drive Margins & FCF* % of revenue High-teens Sales and Marketing Effectiveness to 20% Price and Value 15% - 18% Variable Cost Productivity Simplifying Operating Model / G&A Historic Medium-te
Slide 94: Implementing Lean Across our Business
Implementing Lean Across our Business Optimizing Business Through Lean Margin Expansion • Price Improvement vs. Inflation Portfolio Optimization • SKU Rationalization and Configuration Management Optimizing CapEx / G&A • Real Estate Footprint Inventory Turns • Implement Pull Systems to Reduce Lead T
Slide 95: Lean Implementation Driving Margin Expansion
Lean Implementation Driving Margin Expansion Optimizing Business Through Lean Adj. EBIT Margin* High-teens Lean Margin Drivers to 20% Commercial Excellence ~15% Higher Margin Products from Innovation Portfolio & Supply Chain Optimization 2022E Spin Dis- Volume & Lean Medium Term Target c Cost and Ex
Slide 96: Solid Cash Flow Generation and Financial Flexibility
Solid Cash Flow Generation and Financial Flexibility Optimizing Business Through Lean Free Cash Flow Conversion*-a) Free Cash Flow* Expected to Grow with Future Earnings 85%+ Commitment to Strong Investment Grade Ratings Maintain Strong Balance Sheet with Flexibility Strong Liquidity on Day 1 with $
Slide 97: Aligning Capital Allocation to Strategy
Aligning Capital Allocation to Strategy Aligning Capital Allocation to Strategy Investing in Organic Minority Investments & M&A Revenue Growth Strategic Collaborations ✓ Increasing R&D and Capex ✓ Disciplined Investments ✓ Augmented Product Pipeline ✓ Focus on Differentiation ✓ Adjacent Opportunitie
Slide 98: Outlook
Outlook 2022E-a) Organic Revenue • Continued order book growth MSD Growth* • Greater components access and increased fulfillment $2.7B+ • Proactive cost and price actions Adjusted EBIT* (equal to $2.6B+ on GE basis) • Volume growth and productivity $1.8 - 2.0B • Inventory build for ramp in demand FC
Slide 99: Long-Term Value Creation Framework
Long-Term Value Creation Framework Driving Growth Disciplined MSD Organic Capital Allocation Revenue Growth* Strong FCF* Generation Strong financial position Shareholder Investment in Value Adj EBIT Margin Organic growth Creation Expansion Investment in High-teens to M&A 20%* *Non-GAAP Financial Mea
Slide 100: GE HealthCare
GE HealthCare
Slide 101: Closing Remarks
Closing Remarks Peter Arduini CEO
Slide 102: Significant Value Creation Opportunity
Significant Value Creation Opportunity Visibility to Growth Expanding Adjusted EBIT Margin* Solid demand and backlog Strategic pricing Continued R&D investment Higher-margin products Commercial execution focus Product line simplification % Revenue Growth % Adj. EBIT Margin* High-teens MSD % *-a) to
Slide 103: Driving the Future of Healthcare
Driving the Future of Healthcare Global leader in precision care • Unparalleled brand, scale, customer relationships and capabilities Outstanding portfolio of innovative products and solutions • Breaking new ground across care pathways, devices and digital solutions Driving growth and margin expansi
Slide 104: Thank You
Thank You Upcoming Events: J.P. Morgan Annual Healthcare Conference January 10, 2023 4Q’22 Earnings Call January 30, 2023
Slide 105: Disclaimer: Statements in today's videos
DISCLAIMER: The statements in today’s videos by the following individuals are based on their own opinions and on results that were achieved in their unique settings. Because there is no “typical” hospital and many variables exist, i.e., hospital size, case mix, etc. there can be no guarantee that ot
Slide 106: Investor Day | December 8, 2022
Investor Day | December 8, 2022
Slide 107: Supplemental Materials
Supplemental Materials
Slide 108: Non-GAAP Financial Measures
Non-GAAP Financial Measures The non-GAAP financial measures disclosed in this presentation are supplemental measures of our performance and our liquidity that we believe help investors understand our financial condition, cash flows and operating results and assess our future prospects. We believe th
Slide 109: GEHC Organic Revenue Reconciliation
GEHC Organic Revenue Reconciliation ($ in Millions) 2019 2020 % change 2020 2021 % change 9M ’21 9M ’22 % change 3Q ‘21 3Q ’22 % change Total revenues $16,633 $17,164 3% $17,164 $17,585 2% $12,996 $13,403 3% $4,305 $4,576 6% Less: Acquisitions–a) -- 36 -- 19 -- 175 -- 61 Less: Dispositions–b) 76 21
Slide 110: Segment Organic Revenue Reconciliation
Segment Organic Revenue Reconciliation Imaging ($ in Millions) 2019 2020 % change 2020 2021 % change 9M ‘21 9M ’22 % change 3Q ‘21 3Q ’22 % change Total revenues $9,096 $8,959 (2%) $8,959 $9,433 5% $6,996 $7,276 4% $2,351 $2,516 7% Less: Acquisitions-a) -- --- -- -- -- -- -- -- Less: Dispositions-b)
Slide 111: Adj. EBIT Reconciliation
Adj. EBIT Reconciliation ($ in Millions) 2019 2020 2021 Net income attributable to GE HealthCare $1,524 $13,846 $2,247 Add: Interest and other financial charges – net 88 66 40 Add: Non-operating benefit costs 9 5 3 Less: Provision for income taxes (410) (652) (600) Less: Income (loss) from discontin
Slide 112: Adj. Net Income Reconciliation
Adj. Net Income Reconciliation ($ in Millions) 2019 2020 2021 Net income attributable to GE HealthCare $1,524 $13,846 $2,247 Add: Non-operating benefit (income) costs 9 5 3 Add: Restructuring costs-a) 160 134 155 Add: Acquisition and disposition related charges (benefits) -b) -- -- 14 Add: Spin-Off
Slide 113: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation ($ in Millions) 2019 2020 2021 Cash from operating activities – continuing operations $1,838 $2,618 $1,607 Add: Additions to PP&E and internal-use software (331) (259) (248) Add: Dispositions of PP&E 52 16 15 Add: Impact of factoring programs-a) 341 88 1,453 Free cash f
Slide 114: Definitions
Definitions AI Artificial Intelligence API Active Pharmaceutical Ingredient Book to Bill Total orders divided by total sales within a given financial period (e.g., Quarter or FY) CAGR Compound Annual Growth Rate CCTA Coronary CT Angiography CFD CMOS Flat Detector CT Computed Tomography cGMP Current
Slide 115: Definitions (Cont'd)
Definitions (Cont’d) IGT Image Guided Therapy IDN Integrated Delivery Network MICT Molecular Imaging and Computed Tomography ML Machine Learning MR Magnetic Resonance MRI Magnetic Resonance Imaging MSD Mid-Single Digit NM Nuclear Medicine NPIs New Product Introductions NVBP National Volume Based Pro
Slide 116: Definitions (Cont'd)
Definitions (Cont’d) PDx Pharmaceutical Diagnostics PET Positron Emission Tomography Products Sales of medical equipment, contrast agents (PDX), software licenses (excludes hosting/SaaS), Options & Upgrades Recurring Revenues Maintenance consumables & repair services for equipment, contrast agents (