Ge Healthcare Technologies Inc. · NASDAQ:GEHC
Ge Healthcare Technologies — Q1 2024 Earnings Presentation
31 slides from Ge Healthcare Technologies's earnings presentation, Apr 30, 2024
Slide 1: 1Q 2024 Earnings Presentation
1Q 2024 Earnings Presentation April 30, 2024 © 2024 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 2: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information This presentation contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate
Slide 3: 1Q 2024 Performance
1Q 2024 Performance • Results reflect solid operational execution as we delivered margin expansion, while continuing to invest in innovation • Healthy backlog, orders growth, and positive book-to-bill position us for accelerated growth for the rest of the year • Executing on a disciplined capital al
Slide 4: 1Q 2024 Consolidated Performance Summary
1Q 2024 Consolidated Performance Summary Revenues Organic orders Adjusted EBIT* and Adjusted EPS* Free cash flow* growth** Adjusted EBIT margin* $4.6B 1% YoY $681M $0.90 $274M (1) ~Flat Organic growth* Book-to-Bill** 14.7% Margin 6% YoY $(51)M YoY 1.03x 50 bps YoY *Non-GAAP financial measure. See ap
Slide 5: 1Q 2024 Revenue Performance
1Q 2024 Revenue Performance Business Segment Products and Services** (1) Organic revenue growth* ~flat Reported revenue growth (1)% Ultrasound $824M, (4)%*(1) Services $1.6B, +2% 35% Products $3.0B, (3)% Imaging Total Revenue Total Revenue $4.6B PCS $4.6B $2.5B, ~flat*(1) $747M, (4)%*(1) 65% PDx $59
Slide 6: Delivered 1Q 2024 Adjusted Margin Expansion
Delivered 1Q 2024 Adjusted Margin* Expansion Adjusted Gross Profit Margin* Progress • Enhanced commercial wins • Introduced higher margin NPIs • Continued sales price accretion Adjusted EBIT Margin* • Benefited from productivity initiatives and saw progress in product platforming, manufacturing cost
Slide 7: 1Q 2024 Imaging Results
1Q 2024 Imaging Results 1Q 2024 1Q 2023 YoY change Revenues $2,466M $2,496M ~flat*(1) Segment EBIT $240M $191M 26% Segment EBIT margin 9.7% 7.7% 210 bps Highlights • Organic revenue growth* approximately flat following 12% growth in prior year • EBIT margin improvement YoY primarily due to productiv
Slide 8: 1Q 2024 Ultrasound Results
1Q 2024 Ultrasound Results 1Q 2024 1Q 2023 YoY change Revenues $824M $859M (4)%*(1) Segment EBIT $182M $207M (12)% Segment EBIT margin 22.1% 24.1% (200) bps Highlights • Organic revenue growth* declined following double-digit growth in the prior year • EBIT margin decreased YoY primarily due to infl
Slide 9: 1Q 2024 Patient Care Solutions Results
1Q 2024 Patient Care Solutions Results 1Q 2024 1Q 2023 YoY change Revenues $747M $781M (4)%*(1) Segment EBIT $81M $109M (25)% Segment EBIT margin 10.9% 14.0% (310) bps Highlights • Organic revenue growth* decreased following double-digit growth in prior year • EBIT margin down YoY primarily driven b
Slide 10: 1Q 2024 Pharmaceutical Diagnostics Results
1Q 2024 Pharmaceutical Diagnostics Results 1Q 2024 1Q 2023 YoY change Revenues $599M $558M 8%*(1) Segment EBIT $178M $155M 15% Segment EBIT margin 29.7% 27.8% 190 bps . Highlights • Strong Organic revenue growth* driven by pricing actions, volume growth, and new product introductions • EBIT margin i
Slide 11: 1Q 2024 Cash Performance
1Q 2024 Cash Performance 1Q 2024 Free Cash Flow* Cash Highlights • Delivered $274M in Free cash flow* and repaid $150M of debt(1) $325M $274M • Improved working capital with lower accounts receivable • Reduction in inventory YoY from improvement in input controls 1Q 2023 1Q 2024 *Non-GAAP financial
Slide 12: Reaffirmed 2024 Outlook
Reaffirmed 2024 Outlook 2023 2024E Organic Revenue Growth*(1) 8% Approximately 4% Adjusted EBIT Margin* 15.1% 15.6% - 15.9% 50 - 80 bps growth Adjusted ETR* 23.7% 23% - 25% Adjusted EPS* $3.93 $4.20 - $4.35 7% - 11% growth Free Cash Flow* $1.7 billion ~$1.8 billion * Non-GAAP financial measure. See
Slide 13: Precision Innovation Driving Future Growth
Precision Innovation Driving Future Growth Imaging PDx PCS Remote Operations AI Models for Immunotherapy Portrait VSM Exclusively distributing Demonstrated accuracy(1) in Seamlessly integrates nCommand Lite by IONIC predicting cancer patients’ patient data in one Health for multi-vendor, response to
Slide 14: Summary
Summary • Solid execution on margin expansion while innovating across segments • Encouraged by progress on product pipeline and market outlook, which positions us well for improving growth profile as we move through the year • Reaffirmed 2024 guidance; on track to deliver medium-term targets MIM Sof
Slide 15: Q&A
Q&A © 2024 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 16: Upcoming Events
Upcoming Events Bank of America Securities 2024 Healthcare Conference May 14, 2024 GE HealthCare Annual Meeting of Stockholders May 21, 2024 Jefferies Global Healthcare Conference June 2024 Goldman Sachs 45th Annual Healthcare Conference June 2024 GE HealthCare Investor Day November 21, 2024 © 2024
Slide 17: Appendix
Appendix © 2024 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 18: Organic Revenue
Organic Revenue* ($ in millions) For the three months ended March 31 Unaudited 2024 2023 % change Total revenues $ 4,650 $ 4,707 (1)% Less: Acquisitions(1) — — Less: Dispositions(2) — — Less: Foreign currency exchange (34) — Organic revenue* $ 4,684 $ 4,707 —% (1) Represents revenues attributable to
Slide 19: Segment Organic Revenue
Segment Organic Revenue* ($ in millions) For the three months ended March 31 Unaudited 2024 2023 % change Imaging revenues $ 2,466 $ 2,496 (1)% Less: Acquisitions(1) — — Less: Dispositions(2) — — Less: Foreign currency exchange (27) — Imaging Organic revenue* $ 2,493 $ 2,496 —% Ultrasound revenues $
Slide 20: Adjusted EBIT
Adjusted EBIT* ($ in millions) For the three months ended March 31 Unaudited 2024 2023 % change Net income attributable to GE HealthCare $ 374 $ 372 —% Add: Interest and other financial charges – net 122 136 Add: Non-operating benefit (income) costs (102) (115) Less: Benefit (provision) for income t
Slide 21: Adjusted Net Income
Adjusted Net Income* ($ in millions) For the three months ended March 31 Unaudited 2024 2023 % change Net income attributable to GE HealthCare $ 374 $ 372 —% Add: Non-operating benefit (income) costs (102) (115) Add: Restructuring costs(1) 40 12 Add: Acquisition and disposition-related charges (bene
Slide 22: Adjusted Earnings Per Share
Adjusted Earnings Per Share* (In dollars, except shares outstanding presented in millions) For the three months ended March 31 Unaudited 2024 2023 $ change Diluted earnings per share $ 0.81 $ 0.41 $ 0.40 Add: Deemed preferred stock dividend of redeemable noncontrolling interest — 0.40 Add: Non-opera
Slide 23: Adjusted Tax Expense and Adjusted ETR
Adjusted Tax Expense* and Adjusted ETR* ($ in millions) For the three months ended March 31 Unaudited 2024 2023 Benefit (provision) for income taxes $ (124) $ (163) Add: Tax effect of reconciling items (9) 4 Add: Certain tax adjustments(1) — 30 Adjusted tax expense* $ (133) $ (129) Effective tax rat
Slide 24: Free Cash Flow
Free Cash Flow* ($ in millions) For the three months ended March 31 Unaudited 2024 2023 % change Cash from (used for) operating activities $ 419 $ 468 (11)% Add: Additions to PP&E and internal-use software (145) (143) Add: Dispositions of PP&E — — Free cash flow* $ 274 $ 325 (16)% *Non-GAAP financia
Slide 25: Non-GAAP P&L Reconciliations - 1Q 2024
Non-GAAP P&L Reconciliations - 1Q 2024 ($ in millions) Acquisition Amortization Non- and (Gain) loss on of Investment Operating Spin-Off and Tax Effect of GAAP Restructuring disposition- business and acquisition- revaluation benefit Certain Tax Non-GAAP separation Reconciling Adjustments(6) Reported
Slide 26: Non-GAAP P&L Reconciliations - 1Q 2023
Non-GAAP P&L Reconciliations - 1Q 2023 ($ in millions) Acquisition Amortization Non- and (Gain) loss on of Investment Operating Restructuring disposition- Spin-Off and business and acquisition- Tax Effect of GAAP revaluation Certain Tax Non-GAAP separation benefit Reconciling Adjustments(6) Reported
Slide 27: Acronyms
Acronyms AI Artificial Intelligence bps Basis points CL Curved Linear CS Carestation EBIT Earnings Before Interest and Taxes EHR Employee Health Record EPS Earnings Per Share ETR Effective Tax Rate FCF Free Cash Flow G&A General & Administrative IGS Image-Guided Surgery NPIs New Product Introduction
Slide 28: Definitions
Definitions Book-to-Bill Total orders divided by total revenues within a given financial period (e.g., quarter or FY) Free cash flow conversion* Free cash flow* / Adjusted net income* Rate of change period-over-period of contractual commitments with customers to provide specified goods or services f
Slide 29: Non-GAAP Financial Measures
Non-GAAP Financial Measures The non-GAAP financial measures presented in this presentation are supplemental measures of GE HealthCare’s performance and its We believe Adjusted gross profit, Adjusted gross profit margin, EBIT, Adjusted EBIT, and Adjusted EBIT margin provide management liquidity that
Slide 30: Non-GAAP Financial Measures in Outlook
Non-GAAP Financial Measures in Outlook GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow based on internal forecasts that omit certain amounts that would be included in GAAP fin
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