Danaher Corporation · NYSE:DHR
Danaher — Q1 2023 Earnings Presentation
28 slides from Danaher's earnings presentation, Apr 25, 2023
Slide 1: Danaher Corporation First Quarter 2023 Earnings Release
DANAHER CORPORATION First Quarter 2023 Earnings Release April 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: First Quarter 2023 Performance Summary
First Quarter 2023 Performance Summary ADJUSTED DILUTED NET REVENUE EARNINGS PER COMMON SHARE -7.0% -14.5% Core -4.0% FX -3.0% $2.76 $7,688 $7,167 $2.36 Q1 2022 Q1 2023 Q1 2022 ($ millions) Q1 2023 Throughout this presentation, with respect to revenue performance, for the definitions of “Acquisition
Slide 4: First Quarter 2023 Performance Summary
First Quarter 2023 Performance Summary OPERATING PROFIT MARGIN FREE CASH FLOW PERFORMANCE -330 BPS -3.0% Core -330 bps Acquisitions -15 bps Other +15 bps 1,720 1,672 28.3% 25.0% Q1 2022 Q1 2023 Q1 2022 Q1 2023 ($ millions) Throughout this presentation when referred to in connection with operating pr
Slide 5: First Quarter 2023: Biotechnology
First Quarter 2023: Biotechnology REVENUE OPERATING PROFIT MARGIN -16.0% -410 BPS Core -13.0% Core -455 bps FX -3.0% Acquisitions -15 bps Other +60 bps $2,216 36.1% 32.0% Life Sciences $1,864 Q1 2022 ($ millions) Q1 2023 Q1 2022 Q1 2023 5
Slide 6: First Quarter 2023: Life Sciences
First Quarter 2023: Life Sciences REVENUE OPERATING PROFIT MARGIN +2.5% -30 BPS Core +5.0% Core -130 bps Acquisitions +1.0% Acquisitions -45 bps FX -3.5% Other +145 bps Industrial $1,666 $1,709 19.1% 18.8% Q1 2022 ($ millions) Q1 2023 Q1 2022 Q1 2023 6
Slide 7: First Quarter 2023: Diagnostics
First Quarter 2023: Diagnostics REVENUE OPERATING PROFIT MARGIN -10.0% -500 BPS Core -7.5% Core -510 bps FX -2.5% Other +10 bps $2,644 $2,376 33.5% 28.5% Q1 2022 ($ millions) Q1 2023 Q1 2022 Q1 2023 7
Slide 8: First Quarter 2023: Environmental & Applied Solutions
First Quarter 2023: Environmental & Applied Solutions REVENUE OPERATING PROFIT MARGIN +5.0% +420 BPS Core +6.5% Core +395 bps Acquisitions +0.5% Acquisitions +15 bps FX -2.0% Other +10 bps $1,162 $1,218 24.5% 20.3% Q1 2022 ($ millions) Q1 2023 Q1 2022 Q1 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-MONTH PERIODS ENDED MARCH 31, 2023 AND APRIL 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 by Segment 2 Forecasted Core Sales (Decline) Growth, Base Business Core Sales Growth and Adjusted Operating Profit Margin 3 Segment Sales, Operating Profit and Adjus
Slide 14: Sales Growth by Segment, Core Sales Growth and Base Business
DANAHER CORPORATION Sales (Decline) Growth by Segment, Core Sales (Decline) Growth by Segment and Base Business Core Sales Growth by Segment % Change Three-Month Period Ended March 31, 2023 vs. Comparable 2022 Period Segments Environmental & Total Company Biotechnology Life Sciences Diagnostics Appl
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 March 31, 2023 April 1, 2022 Sales (GAAP) Biotechnology $ 1,864 $ 2,216 Life Sciences 1,709 1,666 Diagnostics 2,376 2,644 Environmental & Applied Solutions 1,218 1,162 Total Com
Slide 17: Net Earnings, Operating Profit, Adjusted EBITDA and Margins (Q1 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 March 31, 2023 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earni
Slide 18: Net Earnings, Operating Profit, Adjusted EBITDA and Margins (Q1 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 April 1, 2022 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Earnin
Slide 19: Other Non-GAAP Adjusted P&L Measures (Q1 2023)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended March 31, 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 mar
Slide 20: Other Non-GAAP Adjusted P&L Measures (Q1 2022)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended April 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 marg
Slide 21: Other Non-GAAP Adjusted P&L Measures: Footnotes
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 22: Other Non-GAAP Adjusted P&L Measures: Diluted Shares
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) MCPS that were anti-dilutive for the given period. For additional information about the impact of the MCPS on the calculation of diluted EPS, see note 5 in the Average and Adjusted Average Common Stock an
Slide 23: Operating Profit Margins and Year-Over-Year 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 April 1, 2022 Operating Profit Margins (GAAP) 28.30 % 36.10 % 19.10 % 33.50 % 20.30
Slide 24: 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 Year-over-Year March 31, 2023 April 1, 2022 Change Total Cash Flows: Net cash provided by operating activities (GAAP)
Slide 25: 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 26: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures our business and we believe are not indicative of Danaher’s ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time. ◦ Other Adjustments: With respect to the
Slide 27: Supplemental Forward-Looking Information and Quarter Highlights
DANAHER CORPORATION Supplemental Forward-Looking Information and Quarter Highlights ($ in millions) Three-Month Period Ending Year Ending June 30, 2023 December 31, 2023 COVID-19 testing sales ~$175 ~$1,200 COVID vaccine and therapeutics sales ~$150 7 Corporate expense ~$(80) ~$(310) Non-service com
Slide 28: DANAHER
DANAHER