Danaher Corporation · NYSE:DHR
Danaher — Q2 2023 Earnings Presentation
33 slides from Danaher's earnings presentation, Jul 25, 2023
Slide 1: Danaher Corporation Second Quarter 2023 Earnings Release
DANAHER CORPORATION Second Quarter 2023 Earnings Release July 25, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. The
Slide 3: Second Quarter 2023 Performance Summary
Second Quarter 2023 Performance Summary ADJUSTED DILUTED NET REVENUE EARNINGS PER COMMON SHARE -7.5% -25.7% Core -7.0% FX -0.5% $2.76 $7,751 $7,157 $2.05 Q2 2022 Q2 2023 Q2 2022 ($ millions) Q2 2023 Throughout this presentation, with respect to revenue performance, for the definitions of "Acquisitio
Slide 4: Second Quarter 2023 Performance Summary
Second Quarter 2023 Performance Summary OPERATING PROFIT MARGIN FREE CASH FLOW PERFORMANCE -840 BPS -7.0% Core -730 bps Acquisitions -10 bps Other -100 bps $1,711 28.4% $1,589 20.0% Q2 2022 Q2 2023 Q2 2022 Q2 2023 ($ millions) Throughout this presentation when referred to in connection with operatin
Slide 5: Second Quarter 2023: Biotechnology
Second Quarter 2023: Biotechnology REVENUE OPERATING PROFIT MARGIN -17.0% -1,090 BPS Core -16.5% Core -850 bps FX -0.5% Acquisitions -20 bps Other -220 bps $2,266 36.4% $1,885 Life Sciences 25.5% Q2 2022 ($ millions) Q2 2023 Q2 2022 Q2 2023 5
Slide 6: Second Quarter 2023: Life Sciences
Second Quarter 2023: Life Sciences REVENUE OPERATING PROFIT MARGIN +5.5% -170 BPS Core +5.5% Core -140 bps Acquisitions +1.0% Acquisitions -30 bps FX -1.0% Industrial $1,796 20.6% 18.9% $1,701 Q2 2022 ($ millions) Q2 2023 Q2 2022 Q2 2023 6
Slide 7: Second Quarter 2023: Diagnostics
Second Quarter 2023: Diagnostics REVENUE OPERATING PROFIT MARGIN -13.0% -1,220 BPS Core -11.5% Core -1,220 bps FX -1.5% $2,561 31.2% $2,231 19.0% Q2 2022 ($ millions) Q2 2023 Q2 2022 Q2 2023 7
Slide 8: Second Quarter 2023: Environmental & Applied Solutions
Second Quarter 2023: Environmental & Applied Solutions REVENUE OPERATING PROFIT MARGIN +2.0% -80 BPS Core +1.5% Core -115 bps Acquisitions +0.5% Acquisitions +10 bps Other +25 bps $1,223 $1,245 25.1% 24.3% Q2 2022 ($ millions) Q2 2023 Q2 2022 Q2 2023 8
Slide 9: Guidance
GUIDANCE 9
Slide 10: Q&A
Q&A 10
Slide 11: DANAHER
DANAHER
Slide 12: Reconciliation of GAAP to Non-GAAP Financial Measures
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE AND SIX-MONTH PERIODS ENDED JUNE 30, 2023 AND JULY 1, 2022
Slide 13: Table of Contents
TABLE OF CONTENTS Page 1 Sales (Decline) Growth by Segment, Core Sales (Decline) Growth by Segment and Base Business Core Sales Growth (Decline) by Segment 2 Forecasted Core Sales (Decline) Growth, Base Business Core Sales Growth and Adjusted Operating Profit Margin 3 Segment Sales, Operating Profit
Slide 14: Sales Growth by Segment and Core Sales Growth
DANAHER CORPORATION Sales (Decline) Growth by Segment, Core Sales (Decline) Growth by Segment and Base Business Core Sales Growth (Decline) by Segment % Change Three-Month Period Ended June 30, 2023 vs. Comparable 2022 Period Segments Environmental & Total Company Biotechnology Life Sciences Diagnos
Slide 15: Forecasted Core Sales Growth and Adjusted Operating Profit Margin
DANAHER CORPORATION Forecasted Core Sales (Decline) Growth, Base Business Core Sales Growth and Adjusted Operating Profit Margin The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation,
Slide 16: Segment Sales, Operating Profit and Adjusted Operating Profit
DANAHER CORPORATION Segment Sales, Operating Profit and Adjusted Operating Profit ($ in millions) Three-Month Period Ended Six-Month Period Ended June 30, 2023 July 1, 2022 June 30, 2023 July 1, 2022 Sales (GAAP) Biotechnology $ 1,885 $ 2,266 $ 3,749 $ 4,482 Life Sciences 1,796 1,701 3,505 3,367 Dia
Slide 17: Net Earnings, Operating Profit, Adjusted EBITDA and Margins (Q2 2023)
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended June 30, 2023 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnin
Slide 18: Net Earnings, Operating Profit, Adjusted EBITDA and Margins (Q2 2022)
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended July 1, 2022 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earning
Slide 19: Net Earnings, Operating Profit, Adjusted EBITDA and Margins (Six Months 2023)
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Six-Month Period Ended June 30, 2023 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnings
Slide 20: Net Earnings, Operating Profit, Adjusted EBITDA and Margins (Six Months 2022)
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Six-Month Period Ended July 1, 2022 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnings
Slide 21: Other Non-GAAP Adjusted P&L Measures (Q2 2023)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended June 30, 2023 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before income earnings per common Sales Cost of sales marg
Slide 22: Other Non-GAAP Adjusted P&L Measures (Q2 2022)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended July 1, 2022 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before income earnings per common Sales Cost of sales margi
Slide 23: Other Non-GAAP Adjusted P&L Measures (Six Months 2023)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Six-Month Period Ended June 30, 2023 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before income earnings per common Sales Cost of sales margin
Slide 24: Other Non-GAAP Adjusted P&L Measures (Six Months 2022)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Six-Month Period Ended July 1, 2022 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before income earnings per common Sales Cost of sales margin
Slide 25: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) A Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above): Three-Month Period
Slide 26: Other Non-GAAP Adjusted P&L Measures
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) six-month period ended July 1, 2022, include the impact of net discrete tax benefits of $49 million related primarily to excess tax benefits from stock-based compensation and changes in estimates associat
Slide 27: Average and Adjusted Average Diluted Shares Outstanding
DANAHER CORPORATION Average and Adjusted Average Common Stock and Common Equivalent Diluted Shares Outstanding (shares in millions) Forecasted Three-Month Period Ending Year Ending Three-Month Period Ended Six-Month Period Ended September 29, December 31, June 30, 2023 July 1, 2022 June 30, 2023 Jul
Slide 28: Operating Profit Margins and Core Operating Margin Changes
DANAHER CORPORATION Operating Profit Margins and Year-Over-Year Core Operating Margin Changes Segments Environmental & Applied Total Company Biotechnology Life Sciences Diagnostics Solutions Three-Month Period Ended July 1, 2022 Operating Profit Margins (GAAP) 28.40 % 36.40 % 20.60 % 31.20 % 25.10 %
Slide 29: Cash Flow, Free Cash Flow and Conversion Ratios
DANAHER CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio and Free Cash Flow to Net Earnings Conversion Ratio ($ in millions) Three-Month Period Ended Six-Month Period Ended Year-over-Year Year-over-Year June 30, 2023 July 1, 2022 Change June 30, 2023 July 1, 2022 Chan
Slide 30: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. M
Slide 31: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures ◦ Other Adjustments: With respect to the other items excluded from Adjusted Diluted Net Earnings Per Common Share, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that
Slide 32: Supplemental Forward-Looking Information and Quarter Highlights
DANAHER CORPORATION Supplemental Forward-Looking Information and Quarter Highlights ($ in millions) Three-Month Period Ending Year Ending September 29, 2023 December 31, 2023 COVID-19 testing sales ~$100 ~$1,200 COVID vaccine and therapeutics sales ~$150 Bioprocessing base business core revenue (dec
Slide 33: DANAHER
DANAHER