Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Q2 2023 Earnings Presentation
22 slides from Boston Scientific's earnings presentation, Jul 27, 2023
Slide 1: Q2 2023 Highlights
Q2 2023 Highlights July 27, 2023 1 Q2 2023 Financial & Operational Highlights | July 27, 2023
Slide 2: Safe Harbor for Forward-Looking Statements and Use of Document
Safe Harbor for Forward-Looking Statements and Use of Document Safe Harbor for forward-looking statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking st
Slide 3: Q2 2023 Highlights
Q2 2023 Highlights Financial Highlights Operational Highlights • Late-breaking clinical science based on real-world outcomes from • Net sales growth: the EU-PORIA registry of the FARAPULSETM Pulsed Field Ablation • +11.0% reported, +12.0% operational*, +11.6% (PFA) System was presented at Hearth Rhy
Slide 4: Reported Net Sales by Segment and Business
Reported Net Sales by Segment and Business Q2 2023 Reported Net Sales: $3.599B Net Sales by Business; Segment Percentage of Total Net Sales MedSurg Cardiology 38% $193M EP $566M CRM Cardiology $317M Watchman $1.704B $629M ICTx Cardiovascular 62% 4 Q2 2023 Financial & Operational Highlights | July 27
Slide 5: MedSurg Performance Summary
MedSurg Performance Summary Measure Q2 2023 Q2 2022 Change Y/Y ($ in millions) Reported Net Sales $1,360M $1,248M +9.0% Adjusted Operating Margin* 33.6% 29.5% +410 bps * Represents operating income as a percentage of operational net sales, both excluding the impact of foreign currency. This measure
Slide 6: Cardiovascular Performance Summary
Cardiovascular Performance Summary Measure Q2 2023 Q2 2022 Change Y/Y ($ in millions) Reported Net Sales $2,239M $1,996M +12.2% Adjusted Operating Margin* 26.0% 23.6% +240 bps * Represents operating income as a percentage of operational net sales, both excluding the impact of foreign currency. This
Slide 7: Living Our Values: ESG Update
Living Our Values: ESG Update Boston Scientific Public – Public Release Authorized 7
Slide 8: Q2 2023 Net Sales vs. Q2 2022
Q2 2023 Net Sales vs. Q2 2022 Q2:23 Reported Organic* Growth Net Sales vs Q2:22 (in millions) Endoscopy $631 12% Urology $485 8% Neuromodulation $244 3% MedSurg $1,360 9% Interventional Cardiology Therapies $629 12% Watchman $317 27% Cardiac Rhythm Management $566 5% Electrophysiology $193 28% Cardi
Slide 9: Income Statement Information
Income Statement Information Non-GAAP Reconciliation Three Months Ended June 30, 2023 (unaudited) Restructuring Acquisition / and Intangible Divestitures- Restructuring- Investment Asset Related Net Related Net Portfolio EU MDR Deferred Tax GAAP Amortization Impairment Charges Charges Net Losses Imp
Slide 10: Working Capital & Cash Flow Metrics
Working Capital & Cash Flow Metrics Days Sales Outstanding (DSO) Adjusted Free Cash Flow* Jun Mar Dec Sep Jun Q2 Q2 2023 2023 2022 2022 2022 2023 2022 54 55 56 54 54 $730M $593M Days Inventory on Hand (DIOH) Capital Expenditures Jun Mar Dec Sep Jun Q2 Q2 2023 2023 2022 2022 2022 2023 2022 194 177 17
Slide 11: Use of Non-GAAP Measures
Use of Non-GAAP Measures To supplement Boston Scientific’s consolidated financial statements presented on a GAAP basis, the Company discloses certain non- GAAP financial measures. These measures are not in accordance with generally accepted accounting principles in the United States. A reconciliatio
Slide 12: Appendix A Net Sales Detail
Appendix A Net Sales Detail 12 Q2 2023 Financial & Operational Highlights | July 27, 2023
Slide 13: Appendix A - Net Sales Detail - MedSurg
Appendix A - Net Sales Detail - MedSurg Three Months Ended June 30, 2023 and 2022 Year-over-Year Change Impact of Foreign Q2 Q2 Currency (in millions) 2023 2022 Reported Basis Fluctuations Operational Basis MEDSURG SEGMENT: ENDOSCOPY UNITED STATES $ 384 $ 338 13.6 % — % 13.6 % INTERNATIONAL 246 221
Slide 14: Appendix A - Net Sales Detail - Cardiovascular
Appendix A - Net Sales Detail - Cardiovascular Three Months Ended June 30, 2023 and 2022 Year-over-Year Change Impact of Foreign Q2 Q2 Currency (in millions) 2023 2022 Reported Basis Fluctuations Operational Basis CARDIOVASCULAR SEGMENT: ICTx UNITED STATES $ 189 $ 192 (1.4) % — % (1.4) % INTERNATION
Slide 15: Appendix B Additional Information - Statement of Operations
Appendix B Additional Information - Statement of Operations 15 Q2 2023 Financial & Operational Highlights | July 27, 2023
Slide 16: Appendix B - Statement of Operations Profitability Margins
Appendix B - Statement of Operations Profitability Margins Three Months Ended Adjusted Gross Margin 6/30/2023 6/30/2022 Basis Points Change Gross Margin, as reported 70.6 % 68.8 % 180 Non-GAAP adjustments 1.4 % 1.6 % Gross Margin, adjusted 72.0 % 70.4 % 160 Three Months Ended Adjusted Operating Marg
Slide 17: Appendix C Additional Non-GAAP Reconciliations
Appendix C Additional Non-GAAP Reconciliations 17 Q2 2023 Financial & Operational Highlights | July 27, 2023
Slide 18: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Impact of Impact of Foreign Recent Q2 Q2 As Reported Currency Operational Acquisitions / Organic (in millions) 2023 2022 Basis Fluctuations Basis Divestitures Basis ENDOSCOPY $ 631 $ 560 12.7 % 0.8 % 13.6 % (1.9) % 11.6 % UROLOGY 485 450 7.8 % 0.6 % 8
Slide 19: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Adjusted Free Cash Flow (in millions) 6/30/2023 6/30/2022 Cash provided by (used for) operating activities $ 658 $ 307 Purchases of property, plant and equipment and internal use software 143 105 Proceeds from sale of of property, p
Slide 20: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations 12 Months Ended Reconciliation of Debt to Adjusted EBITDA (in millions) Q3 2022 Q4 2022 Q1 2023 Q2 2023 6/30/2023 Net income (loss) $ 188 $ 140 $ 314 $ 270 $ 912 Income tax (benefit) expense 57 256 131 156 599 Interest expense 63 64 65 70 262 Interest
Slide 21: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Six Months Ended Three Months Ended Net Sales Growth 6/30/2023 Adjusted Tax Rate 6/30/2023 Net sales growth, as reported 11.5 % Tax Rate, as reported 36.6 % Impact of foreign currency fluctuations 1.9 % Non-GAAP adjustments (26.8) % Net sales growth,
Slide 22: BSX: Acronym Reference Guide
BSX: Acronym Reference Guide 22 Q2 2023 Financial & Operational Highlights | July 27, 2023