Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Thomas Weisel Partners Healthcare Conference 2009
20 slides from Agilent Technologies's conference presentation, Sep 9, 2009
Slide 1: Agilent Technologies - Thomas Weisel Healthcare Conference 2009
A il t T Agilent Technologies h l i Thomas Weisel Healthcare Conference 2009 Mike McMullen September 9, 2009 President and General Manager The Four Seasons Chemical Analysis Group Boston, MA
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward forward-looking looking statements (including, (including without limitation limitation, statements regarding the enhancement of shareholder value, restructuring activities, the acquisition of Varian, Inc., and information and future guidance
Slide 3: Company Overview
Company Overview Primary Businesses Electronic Chemical Analysis Life Sciences LTM Revenue* Measurement Group LTM Revenue* Group LTM Revenue* Group $2.7B $1.1B $1.0B above reflects new segmentation that will take effect in Q1 2010 Currentlyy Reported p Segmentation g ((until new segmentation g above
Slide 4: Agilent's Q309 Business Mix
Agilent’s Q309 Business Mix End Market Global Reach graphs represent revenue distribution Page 4
Slide 5: Q309 Summary of Results
Q309 Summary of Results* conviction solidified that Q3 marks bottom of the cycle • Orders stabilize: y/y decline less severe than revenue decline (23% vs. 27%); book to bill > 1; grew q/q despite typical seasonal drop • Beat expectations: revenue surpassed high end of analyst expectations; EPS beat
Slide 6: Bio-Analytical Measurement
Bio-Analytical Measurement Q309 strengths and weaknesses Life Sciences Market Life Sciences (22% of Agilent Q309 Revenue) +’s •Pharma/Biotech down 6%; rate of decline ACADEMIC & GOVERNMENT moderated from -11%11% in Q2 •1290 Infinity Ultra-High Perf. LC •China •Microarrays sales up nearly 20%+ y/y -’
Slide 7: Life Sciences Overview
Life Sciences Overview last twelve months (LTM) revenue $1 billion Pharma/Biotech Life Sciences Market: $18B (For Profit) Market Drivers • Academic and government investment • Fundamentally linked to human health • Life Science applications – “omics” omics LTM Revenue = $0.7B • Growth in generics an
Slide 8: Chemical Analysis Overview
Chemical Analysis Overview last twelve months (LTM) revenue $1.1 billion Petrochemical $0.4 B & Chemical 8% of Agilent Chemical Analysis Market: $9B Testing revenue Market Drivers Environmental $0.3 B • Food Safety Testing Testing 7% of Agilent • Lab Productivity revenue • Global government stimulus
Slide 9: Agilent R&D - Investment Focus
Agilent R&D - Investment Focus technical leadership and innovation Electronic Measurement Bio-Analytical Measurement Technology Leadership in High-End Markets Leadership in Separation and Detection •Signal g Analysis, y Signal g Generation, Component p Test •High g Pressure Liquid q Chromatograph g
Slide 10: Life Sciences: products and solutions released in FY09
Life Sciences products and solutions released in FY09 1290 Infinity UHPLC System Offering the industry largest power range (1200bar, 5ml/min) for highest speed and resolution and 2-80x increased sensitivity. Also comes as method development solution with industry highest versatility y and HT System
Slide 11: Chemical Analysis: products and solutions released in FY09
Chemical Analysis products and solutions released in FY09 Enhanced Agilent 7890 GC System Capabilities Agilent 7693 Autosampler • 7693 Autosampler, Bloss bead, LTM “fast GC”, Capillary Flow, Flow Multi-Mode Multi Mode Technologies 7000A Triple Quadrupole GC/MS Agilent 7890A GC • Unmatched sensitivit
Slide 12: Chemical Analysis: products and solutions released in FY09
Chemical Analysis products and solutions released in FY09 Sample Preparation – Expansion of SampliQ SPE & QuEChERS Kits • New SPE sample prep solutions available in a wide variety of formats for enhanced productivity SPE • Rapid, worldwide adoption of these kits for pesticide analysis in fruits and
Slide 13: Commitment: Agilent Operating Model
Commitment deliver performance consistent with Agilent’s Operating Model • Agilent Operating Model • 20% ROIC on average across the cycle • 30 30-40% 40% operating profit incremental/decremental • Operating cash flow positive at every point in the cycle l • Take additional action – where automatic f
Slide 14: Focus for FY09: Deliver in a Difficult Environment
Focus for FY09: Deliver in a Difficult Environment operating model discipline and resource allocation drives results • Agilent g Operating p g Model – rapid p response p to economic headwinds • Bi A l ti l M Bio-Analytical Measurementt – positioned iti d ffor growth th • Electronic Measurement Group
Slide 15: Appendix
Appendix 3°5-- Agilent Technologies
Slide 16: Summary of Agilent Restructuring actions beginning in third quarter of FY 2008
Summary of Agilent Restructuring actions beginning in third quarter of FY 2008 Annual Full Benefit Announced Restructuring Cost People Savings Timing Est. Temps elimination, targeted restructuring $65M $55M 500 Q4 2009 (ann 12/17/08) (ann. Exited inspection business, restructure Global $150M $100M 6
Slide 17: Electronic Measurement and Semi & Board Test
Electronic Measurement and Semi & Board Test Q309 strengths and weaknesses General Purpose Market General Purpose (34% of Agilent Q309 Revenue) +’s SEMI & BOARD TEST COMPUTER & •U U.S., S Japan & China A/D spending stabilizing SEGMENT SEMICONDUCTORS •Early signs of stabilization in manufacturing •Or
Slide 18: Net Cash Details
AGILENT TECHNOLOGIES, INC. NET CASH DETAILS (IN MILLIONS) PRELIMINARY Year over Year Sequential Q3'09 Q3'08 Q2'09 Delta % Delta % Cash and cash equivalents $ 1,479 $ 1,640 $ 1,400 -9.8% 5.6% Restricted cash and cash equivalents 1,568 1,570 1,572 -0.1% -0.3% Investments - debt securities 49 117 65 -5
Slide 19: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (IN MILLIONS) PRELIMINARY Agilent Numerator: Q3'09 Q3'08 Adjusted income from operations $ 81 $ 238 Less: Taxes and Other (income)/expense 15 40 (a) Agilent return 66 198 Agilent return annualized $ 264 $ 792 Denominator: Agilent assets (b) $ 3,539 $
Slide 20: Reconciliation from GAAP to Non-GAAP, Three Months Ended July 31, 2009
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP THREE MONTHS ENDED July 31, 2009 (Unaudited) Non-GAAP Adjustments Acceleration of Share-Based Restructuring Compensation Patent and Other Asset Loss on Expense Related to Intangible Pension Litigation Adjustment for (In millions, except
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