Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Barclays Capital 2011 Global Healthcare Conference
28 slides from Agilent Technologies's conference presentation, Mar 16, 2011
Slide 1: Agilent Technologies Barclays Capital 2011 Global Healthcare Conference
AGILENT TECHNOLOGIES BARCLAYS CAPITAL 2 0 1 1 GLOBAL H EALTHCARE CONFERENCE M ARCH 16, 2011 M IAMI, F LORIDA
Slide 2: Solange Glaize, Operational CFO, Life Sciences Group
AGILENT TECHNOLOGIES BARCLAYS CAPITAL 2 0 1 1 G LOBAL H EALTHCARE CONFERENCE SOLANGE GLAIZE OPERATIONAL CFO LIFE SCIENCES GROUP (LSG)
Slide 3: 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 4: 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 Revenue: $2.8B FY10 Revenue: $1.2B FY10 Revenue: $1.5B FY10 Operating Margin* 16% FY10 Operating
Slide 5: FY10/11 Financial Highlights
FY10/11 FINANCIAL HIGHLIGHTS FY10 Q1 FY11 FY11 Guidance** (Mid-Point) Revenue* $5.46B $1.52B $6.35B Organic Revenue Growth* 19% 19% 12% Operating Margin* 17.1% 17.7% 18.4% EPS* $2.00 $0.60 $2.58 ROIC* 21% 21% 22% Operating Cash Flow $718M $120M $950M *Presented on a non-GAAP basis; reconciliations t
Slide 6: Agilent Operating Model
A G I L E N T O P E R AT I N G M O D E L * FY11 Guidance** -1σ MOST +1 σ (Mid-Point) PROBABLE*** Organic Revenue 12% 4% 8% 12% Growth % OM % 18% 18% 20% 21% YoY OM 20% 36% 43% Incremental % ROIC % 22% 23% 25% 27% *Presented on a non-GAAP basis **FY11 guidance as of Analyst Meeting on March 3, 2011 *
Slide 7: How We Win
H OW W E W IN Continue to focus on four point strategy • Market reach and customer trust • Sales, service, and support reach into over 100 countries • #1 customer loyalty ranking in every major product category* • 42% of employees based in Asia • Technology leadership • 10% Revenue invested in R&D a
Slide 8: Helen Stimson, Chemical Analysis Group
AGILENT TECHNOLOGIES BARCLAYS CAPITAL 2 0 1 1 GLOBAL H EALTHCARE CONFERENCE HELEN STIMSON VICE PRESIDENT & GENERAL MANAGER CHEMISTRIES AND SUPPLIES CHEMICAL ANALYSIS GROUP
Slide 9: Large and Diversified Addressable Market
L ARGE AND DIVERSIFIED ADDRESSABLE MARKET Market segmentation* Agilent revenue diversification (LTM**) Aerospace & Defense Pharma & Biotech Markets Size ($B)* Growth* 12% 14% Academia & Government Life Sciences $19 5% - 7% Communications 7% Markets Chemical Analysis 10 5% - 6% 18% Chemical & Energy
Slide 10: Life Sciences Market Overview
L IFE S CIENCES M ARKET OVERVIEW Pharma/Biotech (For Profit) Market Size: $19B Growth: 5-7% Growth Drivers • Academic and government investment 14% of Agilent revenue • Life Science applications – “omics” • Growth in generics, developing Academic and Government (Not-For-Profit) economies • Therapeut
Slide 11: Life Sciences Technology
L IFE S CIENCES T ECHNOLOGY Accelerate workflows through technology leadership 1200 Infinity Liquid Chromatography Series • Includes new Agilent 1220 Infinity LC, new Agilent 1260 Infinity LC and enhanced Agilent 1290 Infinity LC • 1290 offers industry’s largest power range (0-1200 bar, up to 5ml/mi
Slide 12: Life Sciences: Transforming Our Portfolio
L IFE S CIENCES: T RANSFORMING O UR P ORTFOLIO C OMBINING A GILENT’ S S TRENGTH TO D ELIVER TO O UR C USTOMERS NMR Channel – Immediate Impact • Rapidly staffing global service and support • Solid orders growth, long cycle products mean future revenue Technology – Results Primarily in 2012 • New cons
Slide 13: Life Sciences: Strategy to Win
L I F E S C I E N C E S : S T R AT E G Y TO W I N Grow Market Share • Deliver leading-edge application solutions customers demand • Drive emerging application trends • Leverage strong global presence to expand in developing geographies Strengthen Technology Base • Develop breakthrough products and t
Slide 14: Chemical Analysis Market Overview
C H E M I C A L A N A LY S I S M A R K E T O V E R V I E W Chemical & 12% of Agilent Energy revenue Market Size: $10B Growth: 5-6% 8% of Agilent Environmental revenue Growth Drivers • China, Emerging Markets • Food Safety & Environmental Food 6% of Agilent revenue Regulations • Research Funding Fore
Slide 15: CAG Advantage: Portfolio Transformation
C A G A D VA N TA G E : P O R T F O L I O T R A N S F O R M AT I O N Expand Chemistries and Expand leadership in Atomic Supplies offering and Molecular Spectroscopy MS Analyzed Vials GC Columns HPLC Columns Exoscan ICP-MS with MassHunter Workstation Polymeric Consumables Solid Phase Extraction Colum
Slide 16: CAG Variance Cost Synergy Capture
C A G VAR I AN C O ST S Y N E RGY C APT U R E Leverage Agilent Asia supply chain. Shift manufacturing and material sourcing to lower- cost countries; leverage existing capability. Reduce vertical integration. Outsource internal sub-assemblies. Streamline distribution and commercial centers. Eliminat
Slide 17: Chemical Analysis: Our Winning Formula
C H E M I C A L A N A LY S I S : O U R W I N N I N G F O R M U L A Focus on Growth Geographies. Strong foundation, Agilent core competency. Leading Technology. Innovative products, emerging applications, investment model. Superior Customer Experience. Proven Sales and Services model. M&A Synergy-Cap
Slide 18: Summary
S UMMARY 1. Revenue momentum is expected to continue into 2011 2. Agilent is well positioned in each of our three businesses 3. Varian integration is going well 4. Drive the center of the operating model to 20% operating margin* and 25% ROIC* 5. Uses of cash: • Create value organically and through a
Slide 19: Appendix
APPENDIX Agilent Technologies
Slide 20: Electronic Measurement Segment
AGILENT TECHNOLOGIES, INC. ELECTRONIC MEASUREMENT SEGMENT (Unaudited) (In millions, except margin data) FY 2011 Q1 Q2 Q3 Q4 Total Orders $ 797 $ 797 Net revenue $ 771 $ 771 Gross margin % 58.1% 58.1% Income from operations $ 157 $ 157 Operating margin % 20.3% 20.3% FY 2010 Q1 Q2 Q3 Q4 Total Orders $
Slide 21: Chemical Analysis Segment
AGILENT TECHNOLOGIES, INC. CHEMICAL ANALYSIS SEGMENT (Unaudited) (In millions, except margin data) FY 2011 Q1 Q2 Q3 Q4 Total Orders $ 388 $ 388 Net revenue $ 349 $ 349 Gross margin % 51.1% 51.1% Income from operations $ 65 $ 65 Operating margin % 18.7% 18.7% FY 2010 Q1 Q2 Q3 Q4 Total Orders $ 242 $
Slide 22: Life Sciences Segment
AGILENT TECHNOLOGIES, INC. LIFE SCIENCES SEGMENT (Unaudited) (In millions, except margin data) FY 2011 Q1 Q2 Q3 Q4 Total Orders $ 442 $ 442 Net revenue $ 404 $ 404 Gross margin % 53.3% 53.3% Income from operations $ 48 $ 48 Operating margin % 11.8% 11.8% FY 2010 Q1 Q2 Q3 Q4 Total Orders $ 336 $ 331
Slide 23: Reconciliation From GAAP To Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP TWELVE MONTHS ENDED October 31, 2010 (Unaudited) Non-GAAP Adjustments Varian Acceleration of Varian Acquisition Share-Based Restructuring Acquisition & Related Fair Compensation Tax and Other Related Asset Intangible Transformational Lit
Slide 24: Reconciliation From GAAP To Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP TWELVE MONTHS ENDED OCTOBER 31, 2009 (Unaudited) Non-GAAP Adjustments Acceleration of Share-Based Restructuring Compensation Patent and Other Asset Business Expense Related to Intangible Pension Litigation Litigation Adjustment for (In m
Slide 25: Reconciliation From GAAP To Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP THREE MONTHS ENDED January 31, 2011 (Unaudited) Non-GAAP Adjustments Varian Varian Acquisition Restructuring Acquisition & Related Fair and Other Intangible Transformation Integration Value Adjustment for (In millions, except per share a
Slide 26: Revenue Reconciliation
AGILENT TECHNOLOGIES, INC. REVENUE RECONCILIATION (In millions) (Unaudited) PRELIMINARY Percent Percent Q1'11 Q1'10 Inc/(Dec) FY'10 FY'09 Inc/(Dec) GAAP Revenue $ 1,519 $ 1,213 $ 5,444 $ 4,481 Varian acquisition fair value adjustments 5 - 19 - Non-GAAP Revenue $ 1,524 $ 1,213 $ 5,463 $ 4,481 Less re
Slide 27: Reconciliation Of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (IN MILLIONS) PRELIMINARY Agilent Agilent Numerator: Q1'11 Q1'10 FY10 FY09 Adjusted income from operations $ 270 $ 181 $ 936 $ 393 Less: Taxes and Other (income)/expense 43 30 164 67 (a) Agilent return 227 151 $ 772 $ 326 Agilent return annualized $
Slide 28: Reconciliation Of Revenue By Region
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF REVENUE BY REGION (IN MILLIONS) PRELIMINARY Percent Q1'11 Q1'10 Inc/(Dec) GAAP Americas $ 548 $ 437 25% Europe 405 339 20% Asia Pacific 566 437 30% Revenue $ 1,519 $ 1,213 25% Percent Non-GAAP Q1'11 Q1'10 Inc/(Dec) Americas $ 505 $ 407 24% Europe 362 327
Agilent Technologies — Barclays Capital 2011 Global Healthcare Conference on 6ix