Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — 37th Annual J.P. Morgan Healthcare Conference 2019
23 slides from Agilent Technologies's conference presentation, Jan 8, 2019
Slide 1: Agilent Technologies at 37th Annual J.P. Morgan Healthcare Conference
Agilent Technologies 37th Annual J.P. Morgan Healthcare Conference January 8, 2019 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 margin, growth opportunities and drivers, geographic penetration, products, momentum, financial condition and cons
Slide 3: The Agilent Journey
The Agilent Journey Launched 2015
Slide 4: Agilent Transformation: From / To
Agilent Transformation From TO Silo Oriented Culture One Agilent Product Based Solutions Complex, Slow Agile Agilent Exit Unattractive Expanding Portfolio Businesses Unpredictable Delivering on Commitments Unrealized Potential Leading Results 3 January 2019 37th Annual JP Morgan Healthcare Conferenc
Slide 5: Accelerated core growth since 2014
Agilent Transformation Delivering Growth New Agilent Launched 7.1% 6.4% 6.7% 5.9% 4.7% 4.9% Outgrow the 3.8% Market FY12 FY13 FY14 FY15 FY16 FY17 FY18 Accelerated core growth since 2014 (1) (1) Core revenue growth excludes impact of changes in currency translation, M&A, and exited NMR business Prese
Slide 6: Growing Revenue Mix beyond "the Box"
Agilent Transformation Growing Revenue Mix beyond “the Box” 56% 59% 55% 44% 45% 41% Non- Non- Non- Instruments instrument Instruments instrument Instruments instrument 2008 2014 2018 Higher Growth, Less Cyclical Revenue (1) In all years, revenue mix reflects “revenue type” attribution consistent wit
Slide 7: +520 basis points of Operating Margin expansion since 2014
Agilent Transformation Expanding Core Operating Margins New Agilent Launched 23.1% 22.0% 20.7% Expand core 19.6% operating 17.9% margins FY14 FY15 FY16 FY17 FY18 +520 basis points of Operating Margin expansion since 2014 (1) (1) Operating margin adjusted for reimbursement from Keysight for site serv
Slide 8: Return of Capital
Return of Capital Share Repurchases, Growing Dividend Deployed $3.6B Balanced in capital since FY15... returning $2.0B capital allocation to shareholders $191 M $434 M $422 M $170 M $150 M $267 M $133 M $194 M FY15 FY16 FY17 FY18 FY15 FY16 FY17 FY18 $1.3B in share repurchases Double-digit dividend g
Slide 9: Deployment of Capital
Deployment of Capital Invested $1.6B in the business Balanced capital $693 M allocation $1.1B deployed for M&A $480 M 516 + Another $0.25B in early FY19 $0.5B in Capital Expenditures $304 M 341 128 $172 M 74 176 177 139 98 FY15 FY16 FY17 FY18 M&A CapEx Including $185M expansion of oligo manufacturin
Slide 10: Agilent Shareholder Value Creation
Agilent Shareholder Value Creation 17% annual EPS(1) growth FY15-18 $2.79 $2.36 $1.98 $1.74 FY15 FY16 FY17 FY18 Delivering Superior EPS Growth (1) Earnings per share presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided 9 January 2019 37th Annual JP Morgan Healthcare Con
Slide 11: Looking forward, sustaining the momentum
Agilent Technologies Looking forward, sustaining the momentum
Slide 12: Agilent: a growth company
Agilent: a growth company Our growth formula in large, attractive markets The Chemical & Academic & Clinical & (1) Pharma Energy Diagnostics Government Food Environment Market $52B Opportunity $16B $4B $11B $11B $5B $5B Growing 3-5% Innovation Powered by Strategic Geographic Penetration Agile Agilen
Slide 13: Innovation Driven Growth
Innovation Driven Growth Investing More than $1 Billion Over the Next 3 Years Agilent Differentiators ✓ Unique Customer Insights ✓ Engineering Prowess ✓ Faster ● Smaller ● Lower-Cost ✓ Cross platform leverage Breakthroughs in Diagnostics & Genomics Agilent Intuvo 9000 GC Agilent Target Enrichment ~8
Slide 14: Geographic Penetration
Geographic Penetration Extending China Leadership Building on Strength • Expanding footprint and e-commerce capabilities • Leverage large instrument installed base for aftermarket growth China 21% • Build Clinical and Diagnostics Franchise of Agilent’s revenue today… • Country Specific Solutions and
Slide 15: Growth through M&A
Growth through M&A Complements our Organic Growth $1.3B deployed, aligned with One Agilent Integration our growth strategies “The Power of One Agilent ” Leads to increased growth, lower costs High growth complementary platforms Differentiated Consumables • One Company • One Culture • One ERP Clinica
Slide 16: Agilent's Digital Innovation
Agilent’s Digital Innovation Enables customer’s experience, growth, and operating efficiencies Digital Customer Engagement Transforming the customer’s experience with Agilent Agilent Digital Lab Digital Improving the science and economics of the lab Framework Digital Operations Digitally enabling ou
Slide 17: Agile Agilent Business System
Agile Agilent Business System Relentlessly driving continuous process improvements in… Agilent Customer Experience (CX) Initiative Customer Experience Quality Future state journey maps and customer personas 23.1% +520bps Op Margin Profitability Expansion since 2014 (1) 17.9% FY14 FY15 FY16 FY17 FY18
Slide 18: One Agilent Business Model
One Agilent Business Model Driving value creation and shareholder returns Above Market Organic Agile Agilent Capital Growth Business System Deployment • Innovation leader • Investments in • Productivity Gains Organic Growth • Differentiated value • Robust Quality • Complementary M&A proposition • Cu
Slide 19: FY19 Guidance
FY19 Guidance As of November 19, 2018 based on October 31, 2018 exchange rates Revenue $5.13B to $5.17B Core Revenue 5.0% to 5.5% Growth(1) EPS $3.00 to $3.05, assume diluted share count of 322M EPS Growth 8% to 10% Operating Cash $1.10B to $1.15B Flow Returns to • $210M in cash dividends, up 10% Sh
Slide 20: Today's Key Points
Agilent at 37th Annual J.P. Morgan Healthcare Today’s Key Points Agilent competes in large, attractive markets Agilent delivering superior results - Outgrowing the market and expanding margins Going forward, our growth formula will sustain momentum - Innovation & Digital - Complementary M&A - Geogra
Slide 21: Reconciliations of Revenue Excluding Acquisitions and Divestitures and Currency
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING ACQUISITIONS AND DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended October 31, October 31, October 31, October 31, October 3
Slide 22: Reconciliation of Adjusted Non-GAAP Income from Operations and Operating Margins
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating Operating Operating Operating Operating FY 2018 Margin % FY 2017 Margin % FY 2016 Margin % FY 2015 Margin % FY 2014 Margin % Agilent GAA
Slide 23: 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) FY 2018 FY 2017 FY 2016 FY 2015 Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS GAAP net income $ 316 $ 0.97 $ 684 $ 2.10 $ 4
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