Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q1 2020 Earnings Presentation
25 slides from Becton, Dickinson And's earnings presentation, Feb 6, 2020
Slide 1: First Quarter Results Fiscal Year 2020
First Quarter Results Fiscal Year 2020 February 6, 2020 BD and the BD Logo are trademarks of Becton, Dickinson and Company. © 2020 BD. All rights reserved.
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements • These materials include forward-looking statements and it’s possible that actual results could differ from our expectations. Factors that could cause such differences appear in our earnings release furnished as an exhibit to the Form 8-k that BD filed today with the SEC,
Slide 3: Our playbook for the next phase of value creation
Our playbook for the next phase of value creation Grow Simplify Network and portfolio of SKU’s Category Customer Globalization innovation outcomes Business processes Empower Digitalization Strong teams 3 BD and the BD Logo are trademarks of Becton, Dickinson and Company. Company © 2020 BD. All right
Slide 4: Impact: Delivering long-term value for all stakeholders
Impact: Delivering long-term value for all stakeholders Management Approach Q1 Update Develop and maintain a strong portfolio • Launching BD HealthSight™ Clinical Advisor of leading products and solutions that which helps reduce potential medication waste and address significant unmet clinical suppo
Slide 5: Executive overview
Executive overview Tom Polen CEO and President 5 BD and the BD Logo are trademarks of Becton, Dickinson and Company. © 2020 BD. All rights reserved.
Slide 6: Highlights: Q1 FY 2020
Highlights: Q1 FY 2020 Q1 Summary • Solid start to the year, in-line with our expectations Business • Strong growth in Life Sciences and Interventional performance • Medical performance as expected Bard on track • On-track in the 3rd year of the Bard integration and revenue and cost synergy activiti
Slide 7: FY 2020 Planned Product Launches
FY 2020 Planned Product Launches: Robust pipeline drives growth with innovative solutions Medical BD Provena™ Solo BD Provena™ Midline Catheter BD PowerMidline™ Catheter with BD InSyte™ Autoguard™ BD Intraosseous Vascular Access BD HealthSight™: MedSafety, Clinical BD Pyxis™ Logistics 1.2 BD Intevia
Slide 8: Financial overview
Financial overview Chris Reidy Executive Vice President, CFO and Chief Administrative Officer 8 BD and the BD Logo are trademarks of Becton, Dickinson and Company. © 2020 BD. All rights reserved.
Slide 9: Financial results: Q1 FY 2020
Financial results: Q1 FY 2020 Revenue growth Q1 Q1 growth driven by Life Sciences and Interventional with Medical Revenues $4,225 performance as expected FXN % growth +2.5% % growth +1.6% Margin expansion Adjusted OIBT $1,013 (1) Q1 operating margins of 24.0% are in-line with our expectations % of r
Slide 10: Medical Segment Revenue
Medical Segment Revenue Medication Delivery Solutions: $948 +0.2% Strength in vascular care and devices offset by China, as Q1 expected, along with unfavorable timing within the year (0.9%) Q1 Medication Management Solutions: $575 (7.5%) MMS declined as expected due to limited installations Q1 $2,09
Slide 11: Life Sciences Segment Revenue
Life Sciences Segment Revenue Diagnostic Systems: $402 +6.2% Performance driven by broad-based growth across the Q1 portfolio – molecular, microbiology, women’s health and Q1 +5.3% point-of-care, aided by a strong start to the flu season $1,123 Preanalytical Systems: $398 +2.5% Solid performance giv
Slide 12: Interventional Segment Revenue
Interventional Segment Revenue Peripheral Intervention: $395 +4.4% Broad-based strength driving growth through continued Q1 expansion of Venovo®, WavelinQTM and CoveraTM; DCB Q1 +3.4% impact in Q1 was slightly better than expected $1,012 Surgery: $326 +5.6% Strong performance in hernia, biosurgery a
Slide 13: Geographic Revenue Highlights
Geographic Revenue Highlights FXN % Growth Revenue $ and % of total 9.6% China International $295 $1,795 7% 42% Emerging United States Markets 5.1% $2,430 $654 58% 15% 3.4% Developed 1.8% 2.0% Markets $3,571 85% United International Developed Emerging China States Markets Markets 13 BD and the BD Lo
Slide 14: Adjusted income statement: Q1 FY 2020
Adjusted income statement: Q1 FY 2020 As adjusted (1) Q1 FY 2020 % Growth % FXN Growth Revenues $4,225 1.6% 2.5% Gross Profit 2,388 1.9% 2.9% % of revenues 56.5% SSG&A 1,120 (4.6%) (5.5%) % of revenues 26.5% R&D 255 0.0% (0.4%) % of revenues 6.0% Operating Income 1,013 (0.5%) 0.8% % of revenues 24.0
Slide 15: Adjusted gross and operating margins: Q1 FY 2020
Adjusted gross and operating margins: Q1 FY 2020 Delivering ~850 bps 0.3% 56.5% operating margin 56.3% expansion from Adjusted (0.1%) FY 2014 to FY 2020 Gross ~50 bps margin FY 2020 Q1 2019 Performance Currency Q1 2020 +60 bps FY 2019 +210 bps FY 2018 24.5% +180 bps 24.0% FY 2017 Adjusted (0.4%) +20
Slide 16: FY 2020 Guidance
FY 2020 Guidance Update to guidance As adjusted (1) February Guidance November Guidance BD Revenues FXN % Growth 2.5% to 3.5% 5% to 5.5% Revenue – FX Impact (~1%) (~1%) BD Reported Revenues 1.5% to 2.5% 4% to 4.5% February November Revenue Guidance Guidance Gross margin 55.5% to 56.5% 56% to 57% SSG
Slide 17: Adjusted earnings guidance: FY 2020
(1) Adjusted earnings guidance : FY 2020 4% to 5.5% FXN Growth 2% to 3.5% Growth Prior Guidance: 9.5% to 11% FXN Growth 15.5% to 17% (~5%) $11.90 to (~1%) $12.10 $11.68 (~6%) (~2%) +50 bps vs. November FY 2020 Guidance of (~2.5%) FY19 Adjusted EPS FY20 Underlying Gore Royalty Tariff Impact Alaris Pu
Slide 18: Key takeaways
Key takeaways BD delivered solid performance in the first quarter Good progress on BD-Bard integration and continuing to bring our robust innovation pipeline to market Committed to resolving the Alaris situation and returning to our long-standing track record of delivering value to customers, their
Slide 19: Advancing the world of health
3 BD Advancing the world of health
Slide 20: Q1 FY 2020 & Q1 FY 2019 Adjustment Reconciliations
Q1 FY 2020 & Q1 FY 2019 Adjustment Reconciliations 20 BD and the BD Logo are trademarks of Becton, Dickinson and Company. Company © 2020 BD. All rights BD and reserved. All rights reserved its subsidiaries
Slide 21: Q1 FY 2020 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS
Q1 FY 2020 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 21 BD and the BD Logo are trademarks of Becton, Dickinson and Company. Company © 2020 BD. All rights BD and reserved. All rights reserved its subsidiaries
Slide 22: FY 2019 & FY 2018 Reconciliation of Reported Diluted EPS to Adjusted
FY 2019 & FY 2018 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS Twelve Months Ended September 30, Foreign Foreign Foreign Currency Currency Currency Neutral Growth Neutral 2019 2018 Growth Translation Growth % Growth % Reported Diluted Earnings per Share $ 3.94 $ 0.60 $ 3.34 $ (0.62
Slide 23: FY 2020 Reconciliation – FX Impact Emerging, Developed Markets & China
FY 2020 Reconciliation – FX Impact Emerging, Developed Markets & China A B C=(A-B)/B D E=(A-B-D)/B BD BD Reported Reported % Rptd FX Impact FXN % 2019 2018 Change Change Three Months Ended December 31, DEVELOPED MARKETS 3,571 3,528 1.2 (28) 2.0 EMERGING MARKETS 654 633 3.3 (11) 5.1 CHINA 295 275 7.5
Slide 24: FY 2020 Revenue & EPS Outlook Reconciliation
FY 2020 Revenue & EPS Outlook Reconciliation 24 BD and the BD Logo are trademarks of Becton, Dickinson and Company. Company © 2020 BD. All rights BD and reserved. All rights reserved its subsidiaries
Slide 25: Q1 FY 2020 Operating Cash Flow Reconciliation
Q1 FY 2020 Operating Cash Flow Reconciliation (Unaudited, Amounts in billions) Reported Operating Cash Flow $ 0.7 Adjustments (excludes non-cash items) Restructuring costs 0.0 Transaction & Integration costs 0.1 Transaction gain/loss and product-related matters 0.1 Other 0.1 Tax impact related to it
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