Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Investor Day (May 2016)
78 slides from Agilent Technologies's investor day presentation, May 25, 2016
Slide 1: Agilent Technologies Analyst & Investor Day 2016
AGILENT TECHNOLOGIES ANALYST & INVESTOR DAY 2016 NYSE, MAY 25 Analyst & Investor Day 2016 0
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, growth opportunities, financial performance and condition, including revenue growth, operating margin, free cash flow, earnings and ca
Slide 3: Agenda
SECTION 1: Agilent Transformation Transforming the Company Driving Sustained Growth, Value Creation Mike McMullen 9:00 -10:15 Looking Forward Financial Perspectives Didier Hirsch Q&A Mike McMullen & Didier Hirsch Break SECTION 2: Group & Market Updates LSAG: Lead the Analytical Lab Patrick Kaltenbac
Slide 4: Transforming the Company
Transforming the Company One team. Driving results. Right businesses. Launched a customer-centered One Agilent cultural transformation Launched company simplification and Agile Agilent cost reduction initiatives Building exited unattractive businesses, New Portfolio investing in attractive new growt
Slide 5: Agilent Transformation: Measures of Success
Agilent Transformation Measures of Success Expand Outgrow operating the Market Outgrow the market margins Balanced capital Expand operating margins allocation Balanced approach to capital allocation On track to meet commitments Analyst & Investor Day 2016 4
Slide 6: Transformational Results
Transformational Results Significant progress Outgrew the market (1) Core revenue growth in FY15, Expand 6.4% highest since 2011 Outgrow the Market operating margins Expanded operating margins FY15 improvement over Balanced 170 bps FY14, completely offsetting split dis-synergies capital allocation B
Slide 7: Growth Profile “On Track”
Growth Profile “On Track” Outgrow the Market Above market growth in FY15 And Agilent’s Outgrew the Highest Core Market Growth(1) in in FY15 8% Four Years 8% 7% 6.4% 7% 6.4%(1) 6% 6% 4.7% 4.9% 5.0% 5% 5% 4% 3.8% 4% 3% 3% 2% 2% 1% 1% 0% 0% FY12 FY13 FY14 FY15 (2) Peer Blend Agilent (1) Core revenue gr
Slide 8: Operating Margin Expansion “On Track”
Expand Operating Margin Expansion ”On Track” operating margins Delivering on a multi-year cost reduction and rationalization program Operating margin Made 170 bps progress to historic highs 22% toward three year 410 bps improvement 410 commitment in year one 170 bps 19.6% (1) bps Completely offset $
Slide 9: Executing on Balanced Capital Allocation
Balanced Executing on Balanced Capital Allocation capital allocation Increased shareholder returns and invested for future $400M returned to shareholders in FY15 • $133M cash dividends, increasing by +15% in FY16 • $267M in share repurchases ~$400M invested for growth over LTM • $74M Cartagenia acqu
Slide 10: Agilent Driving Sustained Growth and Value Creation
Agilent Driving Sustained Growth and Value Creation President and Chief Executive Officer Mike McMullen Analyst & Investor Day 2016 9
Slide 11: Agilent Growth Strategy
Agilent Growth Strategy Outgrow the Market Grow Share in Attractive Markets Chemical & Academia & Clinical & The Environment Energy Food Pharma Government Diagnostics (1) $47B Opportunity $14B(1) $12B(1) $10B(1) $11B(1) Strategically Target Growth Markets Innovation-driven growth Emerging market exp
Slide 12: Strategically Target Growth Markets
Strategically Target Growth Markets Outgrow the Market Opportunities in higher growth, lower share segments Market LT market Market End-markets(1) size growth position SUSTAINING Chemical & $4.1B 1-3% Energy #1 Environment $5.3B 2-4% & Forensics Food $4.4B 4-6% #2 GROWING Pharma $12.0B 4-6% #2 Acade
Slide 13: Growth through Innovation
Growth through Innovation Outgrow the Market Allocating Investment to Highest Growth Opportunities Capturing new life sciences & Strengthening diagnostics growth opportunities market leadership Genomics and Diagnostics 25% Agilent OneSeq Agilent 6470 Dako Omnis Target Enrichment Triple-Quad LC/MS Ad
Slide 14: Growth through Emerging Market Expansion
Growth through Emerging Market Expansion Outgrow the Market Continue to expand leadership Agilent FY15 Key Strategies Revenue Profile China: Capture 13th Five Year Plan opportunities Emerging & Developing Leverage leading position in instrumentation Economies(1) to grow services and consumables 29%
Slide 15: Growth through M&A
Growth through M&A Outgrow the Market Primary focus to expand offerings around core Primary Focus Periodic Bolt-on acquisitions Opportunistic with revenue and profit Technology Larger acquisitions Expand offerings acquisitions with significant around core to complete revenue growth solutions potenti
Slide 16: Continue Expanding Operating Margin
Expand Continue Expanding Operating Margin operating margins A multi-year cost reduction and rationalization program Operating margin to historic highs Agile Agilent 1 Restructured operations 410 bps 2 Rationalized portfolio FY14 FY17 3 Streamline R&D Rationalize and cost-out FY15-FY17 4 Integ
Slide 17: Optimal Capital Allocation
Balanced Optimal Capital Allocation capital allocation A balanced approach 2017-2018 Returns to Shareholders: $1.15B Principles 1 Support ongoing 3 High capital returns to business shareholders 2 Invest for growth 4 Maintain investment grade rating Analyst & Investor Day 2016 16
Slide 18: What to Expect for FY17 and Beyond
What to Expect for FY17 and Beyond Analyst & Investor Day 2016 17
Slide 19: On Track to Meet FY17 Commitment
On Track to Meet FY17 Commitment Expand Balanced Above market operating capital growth margin allocation (1) 4.5% 22% ~85% Core revenue growth Operating margin Free cash flow by 2017 to shareholders (1) Current modeling assumption Analyst & Investor Day 2016 18
Slide 20: Financial Outlook – Beyond FY17
Financial Outlook – Beyond FY17 Outgrow Expand operating the Market margins Balanced Core Revenue Above market growth capital allocation Adjusted >22% (No M&A case) Operating Margin • Significant Capital Returns to Shareholders Capital Deployment • Complementary M&A Result: Sustained superior earnin
Slide 21: Financial Perspectives
Financial Perspectives Chief Financial Officer Didier Hirsch Analyst & Investor Day 2016 20
Slide 22: Financial Projections
Financial Projections 2016 AID versus Last Year – In Line and On-Track Last AID(1) This AID(1) FY15 FY16 FY17 FY15 FY16 FY17 Beyond Core revenue growth%(2) 6.7% 5.0% 5.0% 6.4% 4.5% 4.5% Above market non-GAAP OM%(3)(4) Margin 19.0% 21.0% 22.0% 19.6% 20.4% 22.0% (net of billings to Keysight) expansion
Slide 23: Roadmap to 22% Operating Margin – On Track
Roadmap to 22% Operating Margin – On Track FY15 to FY16 FY16 to FY17 REV OP(1) REV OP(1) OM%(1) OM%(1) M$ M$ M$ M$ FY15 4,038 792 19.6% FY16(2) 4,170 850 20.4% FX, net of Hedging -50 -23 FX, net of Hedging 3 Acquisitions, Exits, Acquisitions, Exits, 5 10 -7 2 and Divestitures and Divestitures Core G
Slide 24: 2015 Benchmarks: Competitors – Analytical Segments
2015 Benchmarks Good, and Can Be Better Competitors – Analytical Segments Revenue Core Revenue non-GAAP M$ Growth % OM% LSAG + ACG $3,376 6.2%(1) 20.1%(2) Thermo Analytical Instruments $3,208 4.3% 19.1% Waters $2,042 9% 27.8% PerkinElmer Environmental Health $ 886 4% 13.9% Danaher LS&D $8,213 3.7% 1
Slide 25: 2015 Benchmarks: Competitors – Companies
2015 Benchmarks Good, and Can Be Better Competitors - Companies Core non- EV / Revenue P/S P/E Revenue GAAP ROIC(2) EBIDTA M$ (NTM)(3) (NTM)(3) Growth % OM% (NTM) (3) Agilent $ 4,038 6.4% 19.6%(1) 14.8%(1) 3.3 22.0 14.1 Thermo $16,965 4.8% 22.5% 9.5% 3.2 17.7 15.6 Waters $ 2,042 9% 27.8% 17.7% 5.0 2
Slide 26: Tax and US Cash Perspectives
Tax and US Cash Perspectives Low Cash Tax Rate, Track Record of Repatriation, Opportunity to Reduce PF ETR(1) Tax outlays are minimized (cash tax rate of 10% of non-GAAP profit before tax for the foreseeable future) Agilent has repatriated $4.7B with little tax cost since 2005 (plus $1B in 2005 rela
Slide 27: Q&A
Q&A Analyst & Investor Day 2016 26
Slide 28: LSAG Lead The Analytical Lab
LSAG Lead The Analytical Lab President, Life Sciences & Applied Markets Group Patrick Kaltenbach Analyst & Investor Day 2016 27
Slide 29: Life Sciences & Applied Markets Group
Life Sciences & Applied Markets Group APPROACHES Customer- Exceptional Expand centric value market share approach proposition RESULTS $2B 19% +4.5% FY15 revenue FY15 OM(1) FY15 Growth(2) (1) Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided (2) Core revenue growth ex
Slide 30: LSAG Leads the Analytical Labs
LSAG Leads the Analytical Labs Through One Global Go-to-Market Model Why Customers Choose Agilent Lab manager: Research Scientist: Procurement: Ensure 100% Solution that best Lowest cost-of- uptime with round- supports research ownership, highest the-clock operations needs quality 5 Divisions ‒ Mass
Slide 31: Analytical Labs Opportunity
Analytical Labs Opportunity Sustainable and growing end-markets Pharma Academia / Environment Chemical & Food $36.4B(1) Gov' Research & Forensics Energy $12.0B $10.6B TAM $5.3B $4.1B $4.4B LT growth 4-6% 1-3% 2-4% 1-3% 4-6% Market position #2 #5 #1 #1 #2 FY15 revenue 27% 10% 13% 25% 11% % of Agilent
Slide 32: Innovation Driving Growth
Innovation Driving Growth Leading the Category in 2016 and Beyond Mass Liquid Gas Software & Automation Spectroscopy Spectrometry Chromatography Chromatography Informatics AssayMAP 6470 LC/MS QQQ 1260 Infinity II LC 5977B GC/MSD 7800 ICP-MS OpenLAB 2.0 Bravo Specifically Rock solid LC/MS Best-in-cla
Slide 33: LSAG Key Market and Platform Initiatives
LSAG Key Market and Platform Initiatives Foundation for Future Growth Key growth initiatives New solutions for large molecule analysis Expand Pharma and A&G Leverage Seahorse solutions and expand cell analysis footprint Accelerate Mass spec and multi-omics with tailored Grow share in HW and SW solut
Slide 34: Accelerating Large Molecule Analysis
Accelerating Large Molecule Analysis A Significant Opportunity Across Agilent New biological entities market growth 2-3X small molecule Pharma More complex molecular analyses require complete solution With Agilent AssayMap Bravo – unique sample prep capabilities combined with differentiated instrume
Slide 35: Category Leading Capabilities
Category Leading Capabilities Introducing 1260 Infinity II LC – Success story continues Routine analysis to cutting-edge research Broadest portfolio of LC systems and solutions Bringing more efficiency into the analytical lab Outstanding value proposition for upgrades and replacements Analyst & Inve
Slide 36: Accelerating Mass Spec and Multi-omics
Accelerating Mass Spec and Multi-omics MassHunter VistaFlux Software Metabolomics key Life Science research segment — double-digit growth Agilent leads with Integrated Biology suite— GeneSpring SW platform Newest offering, VistaFlux release, makes Agilent’s analytical software for metabolite identif
Slide 37: Seizing New Market Opportunity: Cell Analysis
Seizing New Market Opportunity: Cell Analysis Seahorse Expands our Reach in Research Addresses research need for a broader set of solutions to understand complex processes in diseases like cancer Seahorse unique technology complements Agilent’s solutions in metabolomics, genomics and disease researc
Slide 38: Unified Chromatography Informatics Solutions
Unified Chromatography Informatics Solutions Introducing OpenLAB CDS version 2.0 OpenLAB analytical software platform — largest installed base, exceptional migration opportunity Extended multi-vendor, multi-technique capabilities drive upgrades, market penetration New release — easy to use, yet powe
Slide 39: LSAG Leads the Analytical Labs
LSAG Leads the Analytical Labs Broadening Portfolio Enables Workflows, Drives Growth Continue to enhance category- 1 leading platforms to meet opportunities in diverse markets 2 Expand differentiated capabilities in Pharma and A&G Grow share in LC and LC-MS, 3 targeting key workflows and replacement
Slide 40: ACG Win in Lab Productivity
ACG Win in Lab Productivity President, Agilent CrossLab Group Mark Doak Analyst & Investor Day 2016 39
Slide 41: Agilent CrossLab Group
Agilent CrossLab Group SUCCESS DRIVERS Capitalizing on Unique lab Multiple growing / access/customer innovation emerging engagement vectors markets RESULTS $1.3B 23% +9% FY15 revenue FY15 OM(1) FY15 Growth(2) (1) Core revenue growth excludes impact of changes in currency translation (2) Presented on
Slide 42: ACG Strategic Direction
ACG Strategic Direction Improving the science and economics of the laboratory Complete Higher business Differentiated solutions value services customer experience Distinct position in the market with CrossLab brand promise Analyst & Investor Day 2016 41
Slide 43: Powerful Combination of Solutions, Capabilities
Powerful Combination of Solutions, Capabilities Powerful solutions development engine Chemistries & Instrument Informatics Laboratory Supplies Services Services Enterprise Solutions One R&D Structure Powerful deployment team Global supply chain: >40K Global deployment team spanning 1.5M customer int
Slide 44: Productivity Touch Points Across the Lab
Productivity Touch Points Across the Lab Complete solutions offering in support of customers’ daily workflow Install instrument; Calibrate LC/MS with Complete lab Annual instrument Finalize lab recycle old reference standard inventory compliance relocation plan Suggest approach Sample prep Re-order
Slide 45: Going After Large Opportunity Across Six Markets
Going After Large Opportunity Across Six Markets A large installed base Across markets, vendors and platforms Grow lab-wide business Throughout the lab: Routine, research, services and integrated productivity solutions Lab Enterprise Solutions Engaging the enterprise Across workflows Expand asset op
Slide 46: Distinguishing Agilent in the Competitive Landscape
Distinguishing Agilent in the Competitive Landscape Innovative Full strength Results- Leveraging solutions, of Agilent driven Agilent’s behind Operational services, insights via strengths in every rigor chemistries consultative analytical & supplies solution approach labs The best when it matters th
Slide 47: ACG Initiatives
ACG Initiatives Leveraging strong presence in the lab Key growth initiatives Differentiated customer experience Evolve enterprise solutions to deliver greater outcomes Win with CrossLab Expand portfolio breadth through innovation Capitalize on geographic opportunities Leverage Leverage informatics t
Slide 48: Differentiated Customer Experience
Differentiated Customer Experience Updating Our Capabilities to Brand Promise Fueling Exceed Current Standards Customer Success Streamlining complex lab operations, application Customer onboarding, eCommerce, online consulting, exceptional economic value community forums, mobile tools for field engi
Slide 49: Evolve Enterprise, Leverage Informatics
Evolve Enterprise, Leverage Informatics Laboratory Enterprise One Agilent Strategic Dedicated Consulting Division Customer Program Service Integrated Laboratory Solutions: Tuned to customer success Investing to serve the diverse and New capabilities in asset special needs of management and OpenLAB 2
Slide 50: Expand Portfolio Breadth through Innovation
Expand Portfolio Breadth through Innovation AdvanceBio SEC Agilent University Flexible Support Plans Columns > 30% decrease in operational Anywhere / anytime access to Maximizes Customers’ Budget costs knowledge (stored value cards) Innovations and External Recognition R&D100 Awards - Finalist TASIA
Slide 51: ACG: Capitalizing on China Opportunity
ACG: Capitalizing on China Opportunity Agilent’s dominant market share in instruments and overall analytical lab growth provides extraordinary aftermarket opportunity for Agilent Trends supporting Agilent’s ongoing growth: Delivering > • Increasing acceptance of fee based services 10% CAGR • Inexper
Slide 52: ACG Poised to Outgrow the Market
ACG Poised to Outgrow the Market Meeting customer needs for lab-wide solutions Capitalizing on strong market 1 demand for productivity and emerging markets Uniquely positioned at the 2 intersection of customers, solutions, and innovation to drive the science and economics of the laboratory 3 Designe
Slide 53: DGG Advance Clinical Diagnostics
DGG Advance Clinical Diagnostics President, Diagnostics & Genomics Group Jacob Thaysen Analyst & Investor Day 2016 52
Slide 54: Diagnostics and Genomics Group
Diagnostics and Genomics Group SUCCESS DRIVERS Winning strategy Cancer & Track record of for Agilent’s Genetic (1) Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided growth clinical play Disorders RESULTS $662M 13% +7% FY15 revenue FY15 OM(1) FY15 Growth(2) (1) Presen
Slide 55: Highlights during the past 12 months
Highlights during the past 12 months Record-high Dako Omnis placements Through increased win rate PD-L1 companion diagnostic launches Successful commercialization of novel Dx tests Target Enrichment continues to outperform Consistent growth through product innovations, partnerships Increasing clinic
Slide 56: Clinical markets increasingly require fully integrated solutions
Clinical markets increasingly require fully integrated solutions, creating a significant opportunity for Agilent Highest quality & patient safety Meeting customer needs Optimizing healthcare spending Through regulatory compliance By providing complete workflows ...and enabling precision medicine Agi
Slide 57: DGG’s four strategic opportunities
DGG’s four strategic opportunities each utilize Agilent's core strengths in selected domains Fight cancer Enable new discoveries Improve the quality of life Partner for novel therapeutics & diagnostics Analyst & Investor Day 2016 56
Slide 58: Market dynamics support an outlook for healthy growth
Market dynamics support an outlook for healthy growth Significant markets across selected Empowered by strong domain expertise & strategic opportunities understanding of customer needs 6% CAGR for DGG $13bn Strong domain expertise and unique access mix to the pathology labs Fight cancer + 8% marke
Slide 59: Leveraging our shared capabilities to compete at greater scale
Leveraging our shared capabilities enables us to compete at a greater scale Improve the Enable new Partner for novel Fight cancer quality of life discoveries Therapeutics & Dx Pathology Companion Diagnostics Genomics Reagent Partnerships Nucleic Acid Solutions Service Commercial operations Order ful
Slide 60: Regain pathology leadership through premium value proposition
1 Regain pathology leadership through premium value proposition in primary & advanced staining Omnis highlights, last 12 months Why we win IHC / FISH H&E / Special Stains Unmatched Broadest special throughput & capacity stains menu Fast turnaround time Largest installed for IHC and ISH base
Slide 61: Expand undisputed companion diagnostic leadership
2 Expand undisputed companion diagnostic leadership within advanced staining Strong foundation Unique business model Great opportunity +10 Pharma partners Commercial $130M+ Development Fee-for-service Launch of CDx Incremental(1) tests +35 Programs in development commercial opportunity over +70 Clin
Slide 62: Capture clinical genomics opportunities through full workflow solutions
3 Capture clinical genomics opportunities through full workflow solutions We have the components in place to provide complete workflow solutions Sample Sequencing & Sequencing Alignment & Preparation & Target Enrichment consumables Interpretation SW Illustrative Why we win We are “patient centric”-
Slide 63: Lasergen update
3 Capture clinical genomics opportunities through full workflow solutions - Lasergen update In nearly three months we have made great progress: Hiring up to plans is progressing well Collaboration frameworks are in place and activity is underway New Board structure developed and implemented
Slide 64: Develop comprehensive diagnostic cockpit
4 Develop comprehensive diagnostic cockpit Build around successful and well-proven platforms The cockpit will empower key clinical stakeholders with focus on usability, automation & informatics Patient Multiple diagnostic modalities Tumor Board Mass H&E IHC Spec Special NGS FISH (q)PCR Stains Highly
Slide 65: Roadmap to 20% OM FY2017
Roadmap to 20% OM FY2017 Focused execution to bring OM beyond 20% Deliver core growth above market Top-line leverage Cost-reduction Dako Omnis acceleration Full Dako integration CDx growth / PD-L1 Agile Agilent initiatives Genomics workflows FY17 Gross Margin BioReagents 20% OM and more beyond 2017
Slide 66: DGG’s growth driven by strategic initiatives
DGG’s growth will be driven by successfully executing on our strategic initiatives 1 Regain pathology leadership Commercialize new companion 2 diagnostic assays driving precision medicine Capture clinical genomics 3 opportunity with workflows and applications 4 Develop comprehensive diagnostic cockp
Slide 67: Q&A
Q&A Analyst & Investor Day 2016 66
Slide 68: Closing Comments
Closing Comments Analyst & Investor Day 2016 67
Slide 69: Today’s Key Points
Agilent 2016 Investor Day Today’s Key Points Agilent Transforming and Delivering Growth Strategies are Central to our Plan Optimal Combination: • Above Industry Organic Growth • Margin Expansion Opportunity • Balance Sheet Strength and Flexibility New Agilent foundation established, well positioned
Slide 70: Appendix
Appendix Analyst & Investor Day 2016 69
Slide 71: Premium Portfolio, Global Scale, Positioned for Growth
Premium Portfolio, Global Scale, Positioned for Growth Leadership in steadily Attractive recurring FY15 financial growing end-markets revenue base results Most of the world’s (1) (3,4) $47B TAM in 6 end markets 265,000 $4B 19.6% labs using Agilent solutions Revenue Operating Margin Geographic Revenu
Slide 72: Financial Reconciliations
Financial Reconciliations Analyst & Investor Day 2016 71
Slide 73: Reconciliation of Adjusted Non-GAAP Income from Operations by Segment
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND INCOME FROM OPERATIONS TO REPORTABLE SEGMENTS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating FY 2015 Margin % Revenue: Life Sciences and Applied Markets Group (LSAG) $ 2,046 Agile
Slide 74: Reconciliation of Adjusted Non-GAAP Income from Operations and Margins
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating Operating FY 2015 Margin % FY 2014 Margin % Agilent GAAP Revenue $ 4,038 $ 4,048 Income from operations: GAAP Income from operations $ 5
Slide 75: Reconciliation of Revenue by Segment Excluding NMR
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE BY SEGMENT EXCLUDING THE NMR BUSINESS, ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Life Sciences and Applied Markets Life Sciences and Group Applied Markets Group Diagnostics and Genomics Gro
Slide 76: Reconciliation of Core Revenue Excluding NMR, Acquisitions, Divestitures
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING THE NMR BUSINESS, ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Year Ended Year Ended Year Ended Year Ended October 31, October 31, October 31, October 31, 2015 2014 % Growth 2014 201
Slide 77: Reconciliation of Free Cash Flows
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF FREE CASH FLOWS EXCLUDING ESTIMATED ONE-TIME PAYMENTS AS A PERCENTAGE OF REVENUE (In millions) (Unaudited) FY 2015 Agilent GAAP Revenue $ 4,038 Cash flows from operating activities 491 Less: Investments in property, plant and equipment (98) Add: Estimated
Slide 78: Reconciliation of Return on Invested Capital
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF RETURN ON INVESTED CAPITAL (ROIC) (In millions) (Unaudited) PRELIMINARY AGILENT Numerator: FY 2015 Adjusted non-GAAP income from operations $ 792 Less: Non-GAAP taxes at 20% 158 Agilent return $ 634 Denominator: Beginning invested capital: Total equity $