Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — JP Morgan 28th Annual Healthcare Conference (January 2010)
22 slides from Agilent Technologies's conference presentation, Jan 11, 2010
Slide 1: Agilent Technologies - JP Morgan 28th Annual Healthcare Conference
Agilent Technologies JP Morgan 28th Annual Healthcare Conference Monday, January 11, 2010 Westin St. S Francis Hotel San Francisco, CA
Slide 2: Adrian T. Dillon, Chief Financial Officer
Agilent Technologies JP Morgan 28th Annual Healthcare Conference Adrian T. Dillon Executive Vice President, Finance and Administration Chief Financial Officer
Slide 3: 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 4: Highlights for 2009
Highlights for 2009 Agilent Operating Model drives impressive results in tough economy Financial •Remained profitable through the worst economic downturn in company’s company s history •Generated $280M of operating FCF and 11% ROIC--despite 22% revenue drop •Proforma EPS* of $0.80 surpassed both i
Slide 5: Company Overview
Company Overview Primary Businesses FY09 Revenue: $2.4B FY09 Revenue: $0.9B FY09 Revenue: $1.2B Electronic Chemical Analysis Life Sciences LTM Revenue* Measurement Group LTM Revenue* Group LTM Revenue* Group $2.7B $1.1B $1.0B above reflects segmentation in effect Q1 2010 2009 Reported p Segmentation
Slide 6: Major Market Drivers and Opportunities Created
Major Market Drivers and Opportunities Created Market Drivers Agilent Opportunity Communications Lead in development of new 4G People want to communicate more wireless testing solutions Electronic information from anywhere! M Measurement Homeland Security Applying world-class measurement Threat of t
Slide 7: Agilent FY09 Revenue Distribution
Agilent FY09 Revenue Distribution Diversified portfolio reduces overall volatility BY KEY END MARKETS BY GEOGRAPHY Europe Asia 26% Pacific 36% Americas 38% Page 7
Slide 8: Cash Update
Cash Update In control of our economic destiny • Ended Q409 with $1,215M net cash & short term investments • Generated $213M in operating cash flow in 4th quarter • $1.5B $1 5B Varian V i acquisition* i iti * will ill move us tto a d debt bt neutral t l position iti • Re-starting the share repurchas
Slide 9: Agilent's Commitment
Agilent’s Commitment Deliver performance consistent with Agilent’s Operating Model • Agilent Operating Model • 20% ROIC on average across the cycle • 30-40% operating profit incremental/decremental • Operating cash flow positive at every point in the cycle g • Management incentives aligned g with op
Slide 10: Nick Roelofs, President - Life Sciences Group
Agilent Technologies JP Morgan 28th Annual Healthcare Conference Nicolas ((Nick)) Roelofs,, Ph.D. President - Life Sciences Group
Slide 11: Life Sciences Overview
Life Sciences Overview Life Sciences Market: $18B Pharma/Biotech (For Profit) Market Drivers • Academic and government investment • Fundamentally linked to human health • Life Science applications – “omics” • Growth in generics and CROs 16% of Agilent Revenue • Therapeutic conversion from New Chemic
Slide 12: Chemical Analysis Overview
Chemical Analysis Overview Petrochemical Chemical Analysis Market: $9B 8% of Agilent & Chemical revenue Testing Market Drivers • Food Safety Environmental 7% of Agilent • Lab Productivity Testing revenue • Global Gl b l governmentt stimulus ti l efforts ff t • China Focus for FY10 Food $0.3 $0 3B Te
Slide 13: 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 14: 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 15: Columns and Supplies: Products and solutions released in FY09
Columns and Supplies 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 a
Slide 16: FY10 - Positioned for Growth; Operating Discipline Remains
FY10 - Positioned for Growth; Operating Discipline Remains • Agilent Operating Model – rapid response to economic headwinds • Bio-Analytical Measurement – positioned for growth • Electronic Measurement Group – focus on R&D, restructure to achieve 12% operating margin at $2.4B in revenue (30% below F
Slide 17: Agilent Technologies
Agilent Technologies JP Morgan 28th Annual Healthcare Conference Monday, January 11, 2010 Westin St. S Francis Hotel San Francisco, CA
Slide 18: Reconciliation of Operating Free Cash Flow
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF OPERATING FREE CASH FLOW (IN MILLIONS) PRELIMINARY FY09 FY08 FY07 Net cash provided by operating activities 408 756 969 Less: Investments in property, plant and equipment 128 154 154 Operating free cash flow $ 280 $ 602 $ 815 Operating free cash flow is a
Slide 19: Net Cash Details
AGILENT TECHNOLOGIES, INC. NET CASH DETAILS (IN MILLIONS) PRELIMINARY Year over Year Sequential Q4'09 Q4'08 Q3'09 Delta % Delta % Cash and cash equivalents $ 2,479 $ 1,405 $ 1,479 Restricted cash and cash equivalents 1,566 1,582 1,568 Investments - debt securities 36 96 49 Long-term debt (1,516) (1,
Slide 20: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (IN MILLIONS) PRELIMINARY Agilent Numerator: FY09 FY08 FY07 Adjusted income from operations $ 393 $ 888 $ 719 Less: Taxes and Other (income)/expense 67 161 163 (a) Agilent return $ 326 $ 727 $ 556 Denominator: Agilent assets (b) $ 2,405 $ 2,746 $ 3,5
Slide 21: Reconciliation from GAAP to Non-GAAP, Twelve Months Ended October 31, 2009
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 22: Reconciliation from GAAP to Non-GAAP, Twelve Months Ended October 31, 2008
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP (INCLUDES FAS 123R IN GAAP & NON-GAAP) TWELVE MONTHS ENDED October 31, 2008 (Unaudited) Non-GAAP Adjustments Business Restructuring Disposal and Excess Net translation Acceleration of and Asset Infrastructure Software Intangible gain fro
Agilent Technologies — JP Morgan 28th Annual Healthcare Conference (January 2010) on 6ix