Slide 1: Danaher Corporation Fourth Quarter 2023 Earnings Release
Danaher Corporation Fourth Quarter 2023 Earnings Release January 30, 2024
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. The
Slide 3: Performance Summary: Revenue
Performance Summary: Revenue Q4 Revenue FY Revenue -10.0% -10.5% Core -11.5% Core -10.0% Acquisitions +0.5% Acquisitions +0.5% FX +1.0% FX -1.0% $7,134 $26,643 $6,405 $23,890 Q4 2022 Q4 2023 FY 2022 FY 2023 ($ millions) ($ millions) Throughout this presentation, with respect to revenue performance,
Slide 4: Performance Summary: Operating Profit Margin
Performance Summary: Operating Profit Margin Q4 Operating Profit Margin FY Operating Profit Margin -710 BPS -650 BPS Core -495 bps Core -575 bps Acquisitions -25 bps Acquisitions -20 bps Other -190 bps Other -55 bps 28.0% 28.3% 20.9% 21.8% Q4 2022 Q4 2023 FY 2022 FY 2023 Throughout this presentation
Slide 5: Performance Summary: Adjusted Diluted Net EPS
Performance Summary: Adjusted Diluted Net EPS Q4 Adjusted Diluted Net Earnings FY Adjusted Diluted Net Earnings Per Common Share Per Common Share -17.5% -22.0% $9.71 $2.54 $2.09 $7.58 Q4 2022 Q4 2023 FY 2022 FY 2023 Throughout this presentation, with respect to revenue performance, for the definitio
Slide 6: Performance Summary: Free Cash Flow
Performance Summary: Free Cash Flow Q4 Free Cash Flow Performance FY Free Cash Flow Performance -38.0% -21.5% $1,879 $6,504 $5,119 $1,163 Q4 2022 Q4 2023 FY 2022 FY 2023 ($ millions) ($ millions) Please refer to the accompanying information required by Regulation G, located at the end of this presen
Slide 7: Fourth Quarter 2023: Biotechnology
Fourth Quarter 2023: Biotechnology Revenue Operating Profit Margin -21.0% -760 BPS Core -22.5% Core -690 bps FX +1.5% Other -70 bps $2,223 31.2% $1,759 23.6% Q4 2022 Q4 2023 Q4 2022 Q4 2023 ($ millions) 7
Slide 8: Fourth Quarter 2023: Life Sciences
Fourth Quarter 2023: Life Sciences Revenue Operating Profit Margin -1.0% -790 BPS Core -4.0% Core -280 bps Acquisitions +2.5% Acquisitions -75 bps FX +0.5% Other -435 bps $1,946 $1,930 20.1% 12.2% Q4 2022 Q4 2023 Q4 2022 Q4 2023 ($ millions) 8
Slide 9: Fourth Quarter 2023: Diagnostics
Fourth Quarter 2023: Diagnostics Revenue Operating Profit Margin -8.5% -520 BPS Core -8.5% Core -430 bps Other -90 bps $2,965 $2,716 33.4% 28.2% Q4 2022 Q4 2023 Q4 2022 Q4 2023 ($ millions) 9
Slide 10: Guidance
Guidance 10
Slide 11: Q&A
Q&A 11
Slide 12: »Y...
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Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE-MONTH PERIODS AND YEARS ENDED DECEMBER 31, 2023 AND DECEMBER 31, 2022
Slide 14: Table of Contents
TABLE OF CONTENTS Page 1 Sales (Decline) Growth by Segment, Core Sales (Decline) Growth by Segment and Base Business Core Sales (Decline) Growth by Segment 2 Forecasted Core Sales (Decline) Growth and Adjusted Operating Profit Margin 3 Segment Sales, Operating Profit and Adjusted Operating Profit 4
Slide 15: Sales Growth by Segment, Core Sales Growth by Segment
DANAHER CORPORATION Sales (Decline) Growth by Segment, Core Sales (Decline) Growth by Segment and Base Business Core Sales (Decline) Growth by Segment % Change Three-Month Period Ended December 31, 2023 vs. Comparable 2022 Period Segments Total Company Biotechnology Life Sciences Diagnostics Total s
Slide 16: Forecasted Core Sales Decline and Adjusted Operating Profit Margin
DANAHER CORPORATION Forecasted Core Sales Decline and Adjusted Operating Profit Margin The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines. B
Slide 17: Segment Sales, Operating Profit and Adjusted Operating Profit
DANAHER CORPORATION Segment Sales, Operating Profit and Adjusted Operating Profit ($ in millions) Three-Month Period Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Sales (GAAP) Biotechnology $ 1,759 $ 2,223 $ 7,172 $ 8,758 Life Sciences 1,930 1,946 7,141 7,0
Slide 18: Net Earnings, Operating Profit, Adjusted EBITDA: Q4 2023
DANAHER CORPORATION Net Earnings From Continuing Operations, Operating Profit, Adjusted EBITDA, Net Earnings From Continuing Operations Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2023 Biotechnology Life Sciences Diagnostics Other
Slide 19: Net Earnings, Operating Profit, Adjusted EBITDA: Q4 2022
DANAHER CORPORATION Net Earnings From Continuing Operations, Operating Profit, Adjusted EBITDA, Net Earnings From Continuing Operations Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2022 Biotechnology Life Sciences Diagnostics Other
Slide 20: Net Earnings, Operating Profit, Adjusted EBITDA: Year 2023
DANAHER CORPORATION Net Earnings From Continuing Operations, Operating Profit, Adjusted EBITDA, Net Earnings From Continuing Operations Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2023 Biotechnology Life Sciences Diagnostics Other Total Company
Slide 21: Net Earnings, Operating Profit, Adjusted EBITDA: Year 2022
DANAHER CORPORATION Net Earnings From Continuing Operations, Operating Profit, Adjusted EBITDA, Net Earnings From Continuing Operations Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2022 Biotechnology Life Sciences Diagnostics Other Total Company
Slide 22: Other Non-GAAP Adjusted P&L Measures: Q4 2023
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2023 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross
Slide 23: Other Non-GAAP Adjusted P&L Measures: Q4 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2022 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross
Slide 24: Other Non-GAAP Adjusted P&L Measures: Year 2023
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2023 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross profit Operati
Slide 25: Other Non-GAAP Adjusted P&L Measures: Year 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2022 Net earnings Earnings from continuing Diluted net from operations for earnings per continuing calculation of common operations diluted earnings share from Gross profit Operati
Slide 26: 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 27: Other Non-GAAP Adjusted P&L Measures: Footnotes (continued)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) and year ended December 31, 2022, include the impact of net discrete tax benefits of $459 million and $500 million, respectively, due principally to net deferred tax benefits resulting from legal and oper
Slide 28: Average and Adjusted Average Diluted Shares Outstanding
DANAHER CORPORATION Average and Adjusted Average Common Stock and Common Equivalent Diluted Shares Outstanding (shares in millions) Three-Month Period Ended Year Ended December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022 Average common stock and common equivalent shares outstandin
Slide 29: Year-Over-Year Core Operating Margin Changes
DANAHER CORPORATION Year-Over-Year Core Operating Margin Changes from Continuing Operations Segments Total Company Biotechnology Life Sciences Diagnostics Three-Month Period Ended December 31, 2022 Operating Profit Margins from Continuing Operations (GAAP) 28.00 % 31.20 % 20.10 % 33.40 % Fourth quar
Slide 30: Cash Flow and Free Cash Flow from Continuing Operations
DANAHER CORPORATION Cash Flow from Continuing Operations, Free Cash Flow from Continuing Operations, Operating Cash Flow from Continuing Operations to Net Earnings from Continuing Operations Ratio and Free Cash Flow from Continuing Operations to Net Earnings from Continuing Operations Conversion Rat
Slide 31: 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 32: 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 33: Danaher
danaher.