Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Q2 2015 Earnings Presentation
12 slides from Agilent Technologies's earnings presentation, May 2015
Slide 1: Q2'15 Results Presentation
Agilent Technologies Q2’15 Results Presentation Page 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earning
Slide 3: Agilent Results Q2'15
Agilent Results Q2’15 Scale and leading technology across Analytical Laboratories and Clinical & Dx markets Q2’15 Financial Metrics Q2 Headlines • Book-to-bill increased to 1.08, as orders strength was • Orders: $1.04B, +8% y/y core(1) (+1% reported) not fully converted to revenue in the quarter. (+
Slide 4: Life Sciences & Applied Markets Group (LSAG)
Life Sciences & Applied Markets Group (LSAG) • Strong orders growth; revenue growth muted Instrumentation and Informatics for Analytical Laboratories by backlog build in the quarter. • Operating Margin for the quarter was 15.8%(1)(2) • Order growth continues to be driven by new offerings: 7900 ICP-Q
Slide 5: Agilent Cross Lab Group (ACG)
Agilent Cross Lab Group (ACG) • Core revenue growth strong across consumable Analytical Laboratory Consumables and Services supplies, columns, sample prep and services • Operating Margin in the quarter was 21.5%(1)(2) • Performance reflects the innovative products Agilent is bringing to market and t
Slide 6: Diagnostics and Genomics Group (DGG)
Diagnostics and Genomics Group (DGG) • Operating Margin for the quarter was 15.0%(1)(2) Pathology, Genomics, and Nucleic Acid Manufacturing • FDA warning letter closed in Q2 and work is on track to be completed as planned • Improving pathology, and catch-up of delayed Q1 genomics and nucleic acid sh
Slide 7: Growth in a $45B Market – Q2'15 Results by End Market
Growth in a $45B Market – Q2’15 Results by End Market Strength in Most Markets partially offset by Chemical & Energy, Backlog Build Y/Y growth rates shown are unadjusted for currency, which Agilent Revenue by End Market (1) had an overall negative 7% impact across Agilent revenue Analytical Laborato
Slide 8: Profitable Growth: Aggressively Improving Operating Margins to 22% by FY17
Profitable Growth: Aggressively Improving Operating Margins to 22% by FY17(1) Improving margins 300 basis points over FY14 Drive annual operating margin incrementals over 30% on core(2) revenue growth of 5% or more Q2’15 TTM Adjusted Operating Margin Comparison(3) • Leverage current R&D and sales ch
Slide 9: Profitable Growth Plan Recent Actions
Agilent Profitable Growth Plan Recent Actions On-Track to Deliver “Agile Agilent” Program Benefits • Multi-year program to increase efficiency and customer focus • Initiatives expected to lower costs by $50M in FY15 • New business group structure & portfolio • Consolidated Sales Channel • Central Re
Slide 10: FY15 Agilent Capital Allocation
FY15 Agilent Capital Allocation • Forecast FY15 Operating Cash Flow of $550M • Invest in the Business • FY15 Capital expenditures of $120M • Return $500M in capital to shareholders in FY15 • ~$135M in Dividends • ~$365M in Share repurchases • Maintain investment grade rating Page 10
Slide 11: Strategy to Win: Creating shareholder value
Agilent Strategy to Win Creating shareholder value Accelerate Organic Growth • Focus on sustaining share growth within the core Analytical Lab • Continue to bring innovative new offerings to the market • Expand lab-wide services & consumables with a differentiated customer experience • Leverage Anal
Slide 12: Q3'15 and FY15 Guidance and Forward-looking Considerations
Q3’15 and FY15 Guidance and Forward-looking Considerations Based on April 30, 2015 Exchange Rates FY15 Guidance FY15 • Revenue: $4.05B - $4.11B; growth at mid-point 6.7% core, 0.8% FY14 (2) Guidance at reported (1) Actual (1)(2) mid-point • EPS: $1.67 - $1.73, assumed diluted share count 336M (1)(2)