Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — 36th Annual J.P. Morgan Healthcare Conference (January 2018)
21 slides from Agilent Technologies's conference presentation, Jan 9, 2018
Slide 1: Agilent Technologies 36th Annual J.P. Morgan Healthcare Conference
Agilent Technologies 36th Annual J.P. Morgan Healthcare Conference January 9, 2018 Mike McMullen, President and Chief Executive Officer
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, operating profit and operating margin, growth opportunities, customer service and innovation plans, new product introduction
Slide 3: Agilent – Transformation Focus
Agilent – Transformation Focus One team. Right businesses. Driving results. Established a customer-centered One Agilent cultural transformation Established company simplification and efficiency improvement Agile Agilent initiatives Building exited unattractive businesses, New Portfolio investing in
Slide 4: Agilent Objectives Unchanged
Agilent Objectives Unchanged Measures of Success Expand Outgrow Outgrow the market operating the Market margins Balanced Expand operating margins capital allocation Balanced approach to capital allocation Deliver superior earnings growth 36th Annual JPM Healthcare 3
Slide 5: Measures of Success
Measures of Success Agilent team delivering – above market growth, margin expansion Outgrow Significant acceleration of core Operating Margin expansion Expand operating the Market revenue growth(1) since 2014 of 410 bps since 2014 (2) 410 margins 22.0% bps 7% 6.4% 6.7% 5.9% (2) 6% Completely 20.7% 5
Slide 6: Measures of Success
Measures of Success Deploying capital: shareholder friendly, investing for growth Deployed $2.3B in capital since FY15, Balanced returning $1.35B to shareholders capital allocation $1063 M 340 $667 M $540M deployed for M&A $572 M 139 and equity investments since FY15 M&A and Equity 127 Investments 7
Slide 7: Superior Earnings Growth
Agilent Superior Earnings Growth 16.5% annual EPS(1) growth FY15-17 $2.36 $1.98 $1.74 FY15 FY16 FY17 Exceeded Commitments, Exited FY17 with Momentum (1) Earnings per share presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided 36th Annual JPM Healthcare 6
Slide 8: Agilent in 2017
Agilent in 2017 Exceeded commitments, entering 2018 with momentum • Revenue Growth above the market: up 6.7%(1)(3) on core basis • Expanded Operating Margin: up 130 bps to 22.0%(2)(3) • Adjusted EPS(3) of $2.36, up 19% • Capital Allocation: • Cash Dividends: $170M • Share Repurchases: $194M • Strate
Slide 9: Looking forward, sustaining the momentum
Agilent Technologies Looking forward, sustaining the momentum
Slide 10: Growth Strategy
Agilent Growth Strategy Sustaining our growth momentum Chemical & Academia & Clinical & The Environment Energy Food Pharma Government Diagnostics $50B (1) Opportunity $14B(1) $15B(1) $10B(1) $11B(1) Strategically Target Growth Markets Innovation-driven growth Emerging market expansion Complementary
Slide 11: Our Growth Formula: Target Attractive Growth Markets
Our Growth Formula: Target Attractive Growth Markets Introduce leading platforms addressing multiple markets End-markets LT market growth Clinical & Diagnostics 6-8% Increasing Focus on Cancer Dx Pharma Increasing Focus on 4-6% Bio-pharma Academia & 1-3% Increasing Focus on Government Cancer Researc
Slide 12: Innovation with Purpose Driving Growth in the Analytical Lab
Innovation with Purpose Driving Growth in the Analytical Lab Meeting the critical scientific and economic needs of the lab Cell Analysis Mass Spec Seahorse Ultivo LC/MS QQQ Consumables Spectroscopy Market Specific Workflows, 8900 ICP-QQQ/MS Rapidly Expanding Portfolio Robust, easy to use instrumenta
Slide 13: Driving Growth in Genomics and Diagnostics
Driving Growth in Genomics and Diagnostics Investing and innovating across the research to clinical continuum Accelerate Growth in Pathology Build Out Clinical NGS Workflows Enable New Discoveries PD-L1 PharmDx Expansion of Target Enrichment Portfolio SurePrint Oligonucleotide Libraries Expansion of
Slide 14: Growth through Emerging Market Expansion
Growth through Emerging Market Expansion Capture share in growing China and India Agilent FY17 Key Strategies Revenue Profile China: Capture country investments in Life Sciences, Emerging Food Safety, and Environmental Initiatives & Developing Economies(1) Accelerate Diagnostics & Clinical expansion
Slide 15: M&A: Complements our Organic Growth
M&A: Complements our Organic Growth Building a track record of M&A execution and Continuing to evaluate M&A opportunities in technology portfolio expansion support of Agilent growth strategy 2015 2016 2017 Investment Bolt on and technology Larger acquisitions that Integration acquisitions to expand
Slide 16: FY18 Guidance
FY18 Guidance (1) Sustaining strong EPS growth • Revenue: $4.72B - $4.74B: growth at mid-point 4.25%(2) • Adjusted Operating Margin: 22.4%(3) at mid-point • Adjusted EPS(4): $2.50 - $2.56: assumed diluted share count 326M, 9% growth • Operating Cash Flow of $970M; CapEx of $200M • Returns to Shareho
Slide 17: Today's Key Points
Agilent at 36th Annual J.P. Morgan Healthcare Today’s Key Points Agilent Transformation Delivering superior results Our growth formula will sustain momentum Optimal Combination: • Above Market Growth* • Continued Margin Expansion* • Balance Sheet Strength and Flexibility Agilent foundation establish
Slide 18: Agilent Technologies 36th Annual J.P. Morgan Healthcare Conference
Agilent Technologies 36th Annual J.P. Morgan Healthcare Conference January 9, 2018 Mike McMullen, President and Chief Executive Officer
Slide 19: Reconciliations of Revenue Excluding the NMR Business
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING THE NMR BUSINESS, ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) PRELIMINARY Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended October 31, October 31, October 31, Octob
Slide 20: 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) PRELIMINARY Year Ended Year Ended Year Ended October 31, 2015 October 31, 2016 October 31, 2017 Diluted Diluted Diluted Net income EPS Net income EPS Net income EPS GAAP
Slide 21: 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) PRELIMINARY FY17 over FY14 Operating Operating Operating Operating Percent Pts FY17 Margin % FY16 Margin % FY15 Margin % FY14 Margin % Inc/(Dec) R
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