Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q4 2023 Earnings Presentation
54 slides from Becton, Dickinson And's earnings presentation, Nov 9, 2023
Slide 1: Q4 FY23 Earnings Presentation
Q4 FY23 Earnings Presentation November 9, 2023 Advancing the TM world of health
Slide 2: Caution Concerning Forward-Looking Statements and Non-GAAP Measures
Caution Concerning Forward-Looking Statements This presentation and accompanying audio webcast contain certain estimates and other forward-looking statements (as defined under federal securities laws) regarding BD’s future prospects and performance, including, but not limited to, future revenues, ma
Slide 3: Basis of Presentation
Basis of Presentation All dollar amounts presented are USD ($) in millions, unless otherwise indicated, except per share figures. Continuing Operations - On April 1, 2022, the Company completed the spin-off of its Diabetes Care business as a separate publicly traded company named Embecta Corp. The h
Slide 4: Table of Contents
Executive Summary Table of Innovation Contents Financial Performance Guidance Appendix Q4 FY23 EARNINGS PRESENTATION NOVEMBER 9, 2023 4
Slide 5: Executive Summary
“We achieved another quarter, and another year, of strong performance through our Executive talented team’s execution of our BD2025 strategy and differentiated portfolio of medical technologies that are increasing Summary healthcare efficiency and improving the lives of patients around the world.” T
Slide 6: Bold choices and strong performance creating momentum behind BD2025 strategy
Bold choices and strong performance creating momentum behind our BD2025 strategy Accelerating durable, profitable growth in attractive end-markets Q4 FY23 EARNINGS PRESENTATION NOVEMBER 9, 2023 6
Slide 7: FY23 performance reflects BD2025 strategy in action
FY23 performance reflects BD2025 strategy in action BD2025 is consistently delivering multiple years of strong financial performance and is enabling continued momentum Exceeded initial revenue, margin and earnings targets set at beginning of the fiscal year in a challenging inflationary environm
Slide 8: Executing our long-term targets
Executing our long-term targets 1 2 3 4 5 Strengthened long- Reshaped innovation Expanded Disciplined and Strong team focused on term targeted growth pipeline and tuck-in simplification programs balanced capital execution and profile of 5.5%+ FXN M&A strategy towards underway driving deployment stra
Slide 9: ESG: Together We Advance
ESG: Together We Advance - driving outcomes across four pillars of health Named to the inaugural Named among the Named a U.S. News & World Report’s top 25% “Noteworthy Company” Best Companies to of Newsweek’s list of for the fourth straight year in DiversityInc’s Work For America’s Most annual ranki
Slide 10: Innovation
Innovation Q4 FY23 EARNINGS PRESENTATION NOVEMBER 9, 2023 10
Slide 11: Our innovation-driven growth strategy is on track
Our innovation-driven growth strategy is on track Launched 52 key new products in the past 2 years, strengthening our position across all segments Enhanced Security for Controlled Substances Needleless Blood Draw Multiplex Molecular Dx BD Pyxis™ ES 1.7.4 PIVO™ Pro and BD Nexiva™ with BD MAX™ Respira
Slide 12: Our innovation pipeline is progressing in support of BD2025 strategy
Our innovation pipeline is progressing in support of BD2025 strategy Continued strong achievement of critical milestones New-to-world Cell Sorter for Smart Connected Care Mid-Parameter Segment Capabilities Bioresorbable Material BD FACSDiscover™ S8 Cell Sorter BD Arctic Sun™ Intelligen™ System with
Slide 13: Our innovation pipeline - new product launches expected by FY25
Our innovation pipeline - Over 100 new product launches expected by FY25 (1) Recent innovation driving growth Near and mid-term catalysts Select pipeline products BD Medical BD Alaris™ BD Posiflush™ China Midline BD Intellivault™ Infusion System SafeScrub BD Pyxis™ ES1.7 / PowerMe™ EU Next Gen BD In
Slide 14: BD Medical: making medication delivery safer, simpler and smarter
BD Medical: making medication delivery safer, simpler and smarter Category Size WAMGR Key Products / Pipeline Vascular Access China BD Posiflush™ BD Intelliport™ Management (MDS) ~$9B ~4%+ Midline System SafeScrub PowerMe™ Medication Mgmt. BD Alaris™ U.S. and EU Infusion Pyxis™ Next Gen Solutions (M
Slide 15: BD Life Sciences: from sample collection and discovery to diagnostics
BD Life Sciences: from sample collection and discovery to diagnostics and beyond Category Size WAMGR Key Products / Pipeline Single Cell Analysis Additional (BDB) FACSDiscover™ FACSDuet™ RealBlue™ & ~$3B ~5.5% S8 Cell Sorter Premium RealYellow™ Dyes Microbiology BD Kiestra™ Synapsys™ Next Gen (IDS)
Slide 16: BD Interventional: transforming solutions for chronic disease management
BD Interventional: transforming solutions for chronic disease management Category Size WAMGR Key Products / Pipeline Peripheral Vascular Low Profile Disease (PI) Rotarex™ Small Arterial Next Gen DCB ~$5B ~6% Vessel StentGraft Oncology Multi-Modality (PI) BD Trek™ Vacuum ~$3B ~6% Bone Biopsy Assisted
Slide 17: Financial Performance
“We delivered strong, consistent results this fiscal year which reflect the diversity of our Financial portfolio and our BD2025 strategy in action. We continue to drive value creation and the ‘plus’ side of our organic growth profile Performance through active portfolio management and purposeful cap
Slide 18: After 2 years, well on track to deliver BD2025 financial targets
After 2 years, well on track to deliver BD2025 financial targets increased base Investor Day continued 5.5%+ operating margin double-digit Targeted improvement to dividend base revenue EPS growth Growth ~540 bps growth (2) excluding estimated impact of growth COVID-19 only testing Profile(1) from ~4
Slide 19: Q4 FY23 revenue summary – by segment and geography
Q4 FY23 revenue summary – by segment and geography Revenue by segment Revenue by geography Total BD United States BD Medical 57% $2,554M +6.2% FXN $5,087M +5.9% FXN Base revenues BD Life Sciences $1,330M $5,070M +2.2% FXN +6.3% FXN Base revenues International +7.0% Organic FXN $1,313M 43% +3.8% FXN
Slide 20: BD Medical: Execution of core strategy continues to drive strong growth
BD Medical: Execution of core strategy continues to drive strong growth Q4 FY23 BD Management Q4 Commentary MDS $1,098M • Decline reflects softness in China driven by market dynamics including (0.9%) FXN Medication volume-based procurement PS Delivery • Partially offset by continued execution of our
Slide 21: BD Life Sciences: Strong focus on execution and innovation
BD Life Sciences: Strong focus on execution and innovation driving base business growth against a tough prior year comparison Q4 FY23 BD Management Q4 Commentary BDB • Base growth reflects high single-digit growth in our Microbiology platform $405M driven by continued adoption of our BD Kiestra™ Tot
Slide 22: BD Interventional: Strong performance with double-digit organic growth
BD Interventional: Strong performance with double-digit organic growth across the portfolio Q4 FY23 BD Management Q4 Commentary PI • Continued market adoption of Phasix™ hernia resorbable scaffold driving $482M double-digit growth worldwide in Advanced Repair and Reconstruction +11.7% FXN • Double-d
Slide 23: FY23 revenue summary – by segment and geography
FY23 revenue summary – by segment and geography Revenue by segment Revenue by geography Total BD United States BD Medical 57% $9,502M +9.1% FXN $19,372M +6.4% Organic FXN +4.5% FXN BD Life Sciences Base revenues $5,133M $19,299M (5.7%) FXN +7.0% FXN Base revenues International +5.8% Organic FXN $5,0
Slide 24: FY23 revenue summary – by business unit
FY23 revenue summary – by business unit BD Medical BD Life Sciences BD Interventional BDB $1,509M Surgery MMS PI +11.6% FXN $1,497M MDS $2,980M $1,865M +8.2% FXN $4,293M +18.6% FXN +8.9% FXN +1.6% FXN $5,133 (5.7%) FXN $9,502M Base revenues $4,736M +9.1% FXN +6.4% Organic FXN $5,060M +8.1% FXN +8.7%
Slide 25: BD2025 driving strong organic revenue growth and double-digit adjusted EPS growth
BD2025 driving strong organic revenue growth and double-digit adjusted EPS growth Reported FXN Reported FXN Q423 Q422 Y/Y ∆ Y/Y ∆ FY23 FY22 Y/Y ∆ Y/Y ∆ FY23 P&L Highlights Revenues $5,087 $4,761 6.8% 5.9% $19,372 $18,870 2.7% 4.5% Revenue: strong base growth of 7.0% FXN (5.8% Base revenue $5,070 $4,
Slide 26: Maintaining disciplined capital allocation policy
Maintaining disciplined capital allocation policy Purposeful and balanced investments help fuel our robust pipeline R&D / Capex ~6% ~60% ~$1B ~80% $ in billions FY23 R&D target R&D spend Targeted annual Strategically (5) as a % of directed towards capex spend deployed on value R&D $1.2 sales Transfo
Slide 27: Guidance
Guidance Q4 FY23 EARNINGS PRESENTATION NOVEMBER 9, 2023 27
Slide 28: FY24 Guidance Summary
FY24 Guidance Summary November 9, 2023 Comments • Includes year-over-year COVID-19 only testing headwind of >25 bps 5.25% to 6.25% • Medical: growth expected to be in-line with BDX organic growth range Organic revenue growth (FXN) (1) Midpoint of 5.75% • Life Sciences: growth expected to be below BD
Slide 29: FY24 adjusted EPS driven by strong operating performance
FY24 adjusted EPS driven by strong operating performance ~8.25% to 10.25% ~9% to 11% FXN FXN EPS growth $12.70 - $13.00 ~(75 bps) $12.21 ~(375 bps) FY23 Adjusted EPS Operational performance Sale of Surgical FY24 Adjusted EPS FXN Estimated FX FY24 Adjusted EPS (excl. sale of Surgical Instrumentation
Slide 30: FY24 Key Considerations
FY24 Key Considerations Key Considerations • Guidance does not contemplate a more significant escalation of macro complexity • Effective tax rate guidance assumes no major legislative or regulatory changes; it is not unusual for the rate to fluctuate quarterly given timing of discrete items • Estima
Slide 31: Appendix
Appendix Q4 FY23 EARNINGS PRESENTATION NOVEMBER 9, 2023 31
Slide 32: Glossary
Glossary B Billion GAAP Generally Accepted Accounting Principles PTA Percutaneous Transluminal Angioplasty BDB Biosciences HPV Human Papillomavirus PVD Peripheral Vascular Disease BPS Basis Points HT High Throughput R&D Research and Development Identification & Antibiotic Susceptibility CAGR Compoun
Slide 33: Supplemental Revenue Information
Supplemental Revenue Information Quarterly Reconciliation of Reported Revenue Change to Base Revenue Change For the Three Months Ended September 30, (Unaudited; $ in millions) A B C D=A-B E=A-B-C F=(A-B)/B G=(A-B-C)/B Reported % Change % Change 2023 2022 FX Impact FXN Change Change Reported FXN TOTA
Slide 34: Supplemental Revenue Information
Supplemental Revenue Information Yearly Reconciliation of Reported Revenue Change to Base Revenue Change For the Twelve Months Ended September 30, (Unaudited; $ in millions) A B C D=A-B E=A-B-C F=(A-B)/B G=(A-B-C)/B Reported % Change % Change 2023 2022 FX Impact FXN Change Change Reported FXN TOTAL
Slide 35: Supplemental Revenue Information - Organic Growth
Supplemental Revenue Information - Organic Growth Quarterly Reconciliation of Reported Revenue Change to Base Organic Revenue Change For the Three Months Ended September 30, D=(A-B-C)/B (Unaudited; $ in millions) A B C % Change 2023 2022 FX Impact FXN TOTAL BDX REVENUES FROM CONTINUING OPERATIONS $5
Slide 36: Supplemental Revenue Information - Organic Growth
Supplemental Revenue Information - Organic Growth Yearly Reconciliation of Reported Revenue Change to Base Organic Revenue Change For the Twelve Months Ended September 30, (Unaudited; $ in millions) D=(A-B-C)/B A B C % Change 2023 2022 FX Impact FXN TOTAL BDX REVENUES FROM CONTINUING OPERATIONS $19,
Slide 37: Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Quarterly Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS For the Three Months ended September 30, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral (Unaudited) 2023 2022 Change Transl
Slide 38: Supplemental Non-GAAP Reconciliation 1 of 3
Supplemental Non-GAAP Reconciliation 1 of 3 Quarterly Reconciliation of Adjusted Change from Continuing Operations For the Three Months ended September 30, 2023 Notes for Non- Separation - Product, Income tax (A) GAAP Reported Purchase Integration Restructuring related European litigation, and TSA /
Slide 39: Supplemental Non-GAAP Reconciliation 2 of 3
Supplemental Non-GAAP Reconciliation 2 of 3 Quarterly Reconciliation of Adjusted Change from Continuing Operations For the Three Months ended September 30, 2022 Notes for Product, Income tax (B) Non-GAAP Reported Purchase Integration Restructuring Separation - European litigation, and TSA / LSA Impa
Slide 40: Supplemental Non-GAAP Reconciliation 3 of 3
Supplemental Non-GAAP Reconciliation 3 of 3 Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations Change in Three Months Ended September 30, 2023 Compared With Three Months Ended September 30, 2022 (A) (B) (C) = (A) - (B) (D) = (C) / (B)
Slide 41: Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Year to Date Reconciliation of Reported Diluted EPS from Continuing Operations to Adjusted Diluted EPS from Continuing Operations For the Twelve Months ended September 30, Foreign Foreign Foreign Currency Currency Cu
Slide 42: Supplemental Non-GAAP Reconciliation 1 of 3
Supplemental Non-GAAP Reconciliation 1 of 3 Yearly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Twelve Months ended September 30, 2023 Notes for Product, Income tax (A) Non-GAAP Purchase Integration Restructuring Separation - Europ
Slide 43: Supplemental Non-GAAP Reconciliation 2 of 3
Supplemental Non-GAAP Reconciliation 2 of 3 Yearly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Twelve Months ended September 30, 2022 Notes for Non- Product, Income tax (B) GAAP Reported Purchase Integration Restructuring Separati
Slide 44: Supplemental Non-GAAP Reconciliation 3 of 3
Supplemental Non-GAAP Reconciliation 3 of 3 Year-to-date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations Change in Twelve Months Ended September 30, 2023 Compared With Twelve Months Ended September 30, 2022 (A) (B) (C) = (A) - (B) (D) = (C) /
Slide 45: Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Year to date Reconciliation of Reported EPS from Continuing Operations to Adjusted Diluted EPS from Continuing Operations For the Twelve Months Ended September 30, Foreign Foreign Foreign Currency Currency Currency N
Slide 46: Supplemental Non-GAAP Reconciliation
Supplemental Non-GAAP Reconciliation Year to Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations For the Twelve Months ended September 30, 2021 Notes for Non- Product, Income tax (B) GAAP Reported Purchase Integration Restructuring European
Slide 47: Organic Growth Reconciliation and Adjusted Operating Margin
Supplemental Revenue Information - Organic Growth Reconciliation Yearly Reconciliation of Reported Revenue Change to Base Organic Revenue Change For the Twelve Months Ended September 30, (Unaudited; $ in millions) D=(A-B-C)/B A B C % Change 2022 2021 FX Impact FXN TOTAL BDX REVENUES FROM CONTINUING
Slide 48: Revenues by Business Segments and Units (Quarter)
Supplemental Revenue Information – Revenues by Business Segments and Units For the Three Months ended September 30, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2023 2022 FX Impact Reported FXN BD MEDICAL Medication Delivery Solutions $1,098 $1,101 $7 (0.2%) (0.9%) Medication Mana
Slide 49: Revenues by Business Segments and Units (Year)
Supplemental Revenue Information – Revenues by Business Segments and Units For the Twelve Months ended September 30, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2023 2022 FX Impact Reported FXN BD MEDICAL Medication Delivery Solutions $4,293 $4,308 ($84) (0.3%) 1.6% Medication Ma
Slide 50: Revenues by Geographic Regions
Supplemental Non-GAAP Reconciliation – Revenues by Geographic Regions For the Three Months ended September 30, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2023 2022 FX Impact Reported FXN United States $2,879 $2,708 — 6.3% 6.3% International $2,209 $2,053 $46 7.6% 5.3% Developed
Slide 51: Net Leverage and Free Cash Flow
Supplemental Non-GAAP Reconciliations – Net Leverage and Free Cash Flow Reconciliation of Net Income from Continuing Operations to Non-GAAP Adjusted EBITDA Reconciliation of Net Cash Provided by Continuing Operating Activities to Free Cash from Continuing Operations – Unaudited; $ in millions Flow –
Slide 52: FY2024 Outlook Reconciliation
FY2024 Outlook Reconciliation Full Year FY2023 Full Year FY2024 Outlook ($ in millions) FX Neutral % Change Reported Revenues BDX Reported Revenues from Continuing Operations $19,372 FY2024 Revenue Growth +4.5% to +5.5% FY2024 Inorganic Impact to Revenue Growth (~75) basis points FY2024 Organic Reve
Slide 53: FY2024 Outlook Reconciliation – Adjusted EPS
Supplemental Non-GAAP Reconciliation – FY2024 Outlook Reconciliation Full Year FY2024 Outlook Full Year FY2023 from Continuing Operations Total Company Reported Diluted Earnings per Share $5.10 Purchase accounting adjustments ($1.434 billion pre-tax)(1) 4.97 Integration costs ($67 million pre-tax)(2
Slide 54: Investor Relations contact information
Investor Relations contact information Greg Rodetis Adam Reiffe 54 Nadia Goncalves SVP, Treasurer & Head of Sr. Director, Investor Relations Sr. Director, Investor Relations Investor Relations investor.relations@bd.com Advancing the TM world of health 54
Becton, Dickinson and Company — Q4 2023 Earnings Presentation on 6ix