Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Stifel Nicolaus Healthcare Conference 2010
15 slides from Agilent Technologies's conference presentation, Sep 15, 2010
Slide 1: Agilent Technologies Stifel Nicolaus Healthcare Conference
AGILENT TECHNOLOGIES STIFEL NICOLAUS HEALTHCARE CONFERENCE DIDIER HIRSCH SR. VICE PRESIDENT, CFO GUS SALEM VICE PRESIDENT & GENERAL MANAGER, BIOLOGICAL SYSTEMS DIVISION SEPTEMBER 15, 2010
Slide 2: Safe Harbor
SAFE HARBOR This presentation contains forward-looking statements (including, without limitation, information and future guidance on our goals, priorities, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earnings, the con
Slide 3: The World's Premier Measurement Company
T H E W O R L D ’ S P R E M I E R M E A S U R E M E N T C O M PA N Y Electronic Chemical Life LTM Revenue* LTM Revenue* LTM Revenue* Measurement $2.7B Analysis $1.1B Sciences $1.0B Group Group Group FY10 Est’d Revenue: $2.7B FY10 Est’d Revenue: $1.2B FY10 Est’d Revenue: $1.5B Ron Nersesian Mike McMu
Slide 4: Global Scale and Scope
G LOBAL S CALE AND S COPE Global revenue and operational footprint offers unmatched coverage and hedges risk Revenue by Geography Q3’10 Headcount by Geography Q3’10 Agilent 18,500 Worldwide Employees 8,000 7,000 Asia Pacific Americas 6,000 37% 37% 5,000 Asia Pacific 4,000 Europe 3,000 Europe 26% 2,0
Slide 5: Q3 2010 Financial Highlights
Q3 2010 F INANCIAL HIGHLIGHTS Orders = $1.49B, +39% y/y (+30% organic) Revenues = $1.40B, +32% y/y (+24% organic): • LSG +28% y/y (+15% organic) • CAG +62% y/y (+13% organic) • EMG +24% y/y (+34% organic) Cash Flow from Operations = $90M ROIC* = 20% Operating Profit Margin* = 18% Q4’10 Guidance = Re
Slide 6: Q4 Progress Report
Q 4 2 0 1 0 P ROGRESS R EPORT • We are having a very strong start to our 4th quarter. • Organically, August orders and revenues are up 46% and 22% respectively versus last year. • All businesses and geographies show organic order growth above 20%. • We are not seeing any sign of softening in Septemb
Slide 7: FY11 Scenarios
FY11 S CENARIOS* Y/Y Organic Y/Y Total Non GAAP Revenue Revenue Revenue Operating Non GAAP Fiscal Year B$ Growth Growth Margin EPS FY11 Scenario $ 6.2 9% 15% 18.7% $ 2.50 FY11 Scenario $ 5.9 4% 10% 16.9% $ 2.15 ** FY10 Guidance 8/16 $ 5.4 $1.94 - $1.95 *Scenarios do not represent forecast or guidanc
Slide 8: Overview – Electronic Measurement Market
O VERVIEW – E LECTRONIC M EASUREMENT M ARKET Market Size: $12B 20% of Agilent Growth: 4-5% Communications revenue Market Drivers • Next Generation Communications • Economic recovery Industrial , 20% of Agilent Comps. & Semi revenue • Global Security and Defense 2% of Agilent Key Competitors revenue
Slide 9: Overview – Chemical Analysis Market
O V E R V I E W – C H E M I C A L A N A LY S I S M A R K E T Market Size: $9B Chemical & 11% of Agilent Energy Testing revenue Secular Growth: 5-6% Growth Drivers Environmental 9% of Agilent • Food safety regulations Testing revenue • China and developing countries • Lab productivity • Replacement M
Slide 10: Overview – Life Sciences Market
OVERVIEW – L IFE S CIENCES M ARKET Pharma/Biotech Market Size: $19B (For Profit) Growth: 5-7% Growth Drivers • Academic and government investment • Life Science applications – “omics” 14% of Agilent revenue • Growth in generics and CROs • Therapeutic conversion to New Biological Academic and Governm
Slide 11: How We Win
H OW W E W IN • Market reach and customer trust • 6,000 sales and marketing employees supporting customers in over 100 countries • #1 customer loyalty ranking in every major product category* • 37% of Agilent revenue from Asia Pacific Q3’10 • Technology leadership • $600M/year, 11% Revenue invested
Slide 12: Q&A
QaRA Agilent Technologies
Slide 13: Reconciliation from GAAP to Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP THREE MONTHS ENDED July 31, 2010 (Unaudited) Non-GAAP Adjustments Varian Acceleration of Restructuring Varian Acquisition Share-Based and Other Acquisition & Related Fair Compensation Related Costs Asset Intangible Transformational Litig
Slide 14: Revenue Reconciliation
AGILENT TECHNOLOGIES, INC. REVENUE RECONCILIATION (In millions) (Unaudited) PRELIMINARY Percent Q3'10 Q3'09 Inc/(Dec) GAAP Revenue $ 1,384 $ 1,057 31% Varian acquisition fair value adjustments 11 - Non-GAAP Revenue $ 1,395 $ 1,057 Less revenue from acquisition and divestitures included in segment re
Slide 15: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) PRELIMINARY Agilent Agilent Numerator: Q3'10 Q3'09 Non-GAAP income (loss) from operations $ 251 $ 81 Less: Taxes and Other (income)/expense 43 15 (a) (a) Segment return 208 66 Segment return annualized $ 832 $ 264 Denominato
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