Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Q1 2024 Earnings Presentation
23 slides from Boston Scientific's earnings presentation, Apr 24, 2024
Slide 1: Q1 2024 Highlights
Q1 2024 Highlights April 24, 2024 1 Q1 2024 Financial & Operational Highlights | April 24, 2024
Slide 2: Safe Harbor for Forward-Looking Statements and Use of Document
Safe Harbor for Forward-Looking Statements and Use of Document Safe Harbor for forward-looking statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking st
Slide 3: Q1 2024 Highlights
Q1 2024 Highlights Financial Highlights Operational Highlights • Net sales growth: • Commenced launch of the FARAPULSE™ Pulsed Field Ablation (PFA) System in the U.S. and completed enrollment in the second phase of the • +13.8% reported, +15.0% operational*, +13.1% ADVANTAGE AF clinical trial studyi
Slide 4: Reported Net Sales by Segment and Business
Reported Net Sales by Segment and Business Q1 2024 Reported Net Sales: $3.856B Net Sales by Business; Segment Percentage of Total Net Sales Cardiology MedSurg NM $256M 37% $300M EP Urology $513M $575M CRM Cardiology $344M Watchman $1.872B Endo $642M $652M ICTx PI $573M Cardiovascular 63% 4 Q1 2024 F
Slide 5: MedSurg Performance Summary
MedSurg Performance Summary Measure Q1 2024 Q1 2023 Change Y/Y Reported Net Sales $1,412M $1,280M +10.3% Adjusted Operating Margin* 33.8% 32.3% +150 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency exchange rates to exclud
Slide 6: Cardiovascular Performance Summary
Cardiovascular Performance Summary Measure Q1 2024 Q1 2023 Change Y/Y Reported Net Sales $2,445M $2,110M +15.9% Adjusted Operating Margin* 26.9% 26.7% +20 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency exchange rates to
Slide 7: Living our values: actions toward a healthier, more equitable world
Living our values: actions toward a healthier, more equitable world Learn more in the Boston Scientific 2023 Performance Report 7 Q1 2024 Financial & Operational Highlights | April 24, 2024 All metrics are as of December 31, 2023 or the year then ended .
Slide 8: Q1 2024 Net Sales vs. Q1 2023
Q1 2024 Net Sales vs. Q1 2023 Q1:24 Reported Organic* Growth Net Sales vs Q1:23 (in millions) Endoscopy $642 10% Urology $513 10% Neuromodulation $256 (1)% MedSurg $1,412 8% Interventional Cardiology Therapies $652 13% Watchman $344 19% Cardiac Rhythm Management $575 5% Electrophysiology $300 72% Ca
Slide 9: Income Statement Information
Income Statement Information Non-GAAP Reconciliation Three Months Ended March 31, 2024 (unaudited) Restructuring Acquisition/ and Intangible Divestitures- Restructuring- Litigation- Investment Asset Related Net Related Net Related Net Portfolio EU MDR Deferred Tax GAAP Amortization Impairment Charge
Slide 10: Working Capital & Cash Flow Metrics
Working Capital & Cash Flow Metrics Days Sales Outstanding (DSO) Free Cash Flow* Mar Dec Sep Jun Mar Q1 Q1 2024 2023 2023 2023 2023 2024 2023 54 55 55 54 55 $(15)M $83M Days Inventory on Hand (DIOH) Capital Expenditures Mar Dec Sep Jun Mar Q1 Q1 2024 2023 2023 2023 2023 2024 2023 193 199 201 194 177
Slide 11: Use of Non-GAAP Measures
Use of Non-GAAP Measures To supplement Boston Scientific’s consolidated financial statements presented on a GAAP basis, the Company discloses certain non- GAAP financial measures. These measures are not in accordance with generally accepted accounting principles in the United States. A reconciliatio
Slide 12: Appendix A Net Sales Detail
Appendix A Net Sales Detail 12 Q1 2024 Financial & Operational Highlights | April 24, 2024
Slide 13: Appendix A - Net Sales Detail - MedSurg
Appendix A - Net Sales Detail - MedSurg Three Months Ended March 31, 2024 and 2023 Year-over-Year Change Impact of Foreign Q1 Q1 Currency (in millions) 2024 2023 Reported Basis Fluctuations Operational Basis MEDSURG SEGMENT: ENDOSCOPY UNITED STATES $ 395 $ 351 12.6 % — % 12.6 % INTERNATIONAL 247 226
Slide 14: Appendix A - Net Sales Detail - Cardiovascular
Appendix A - Net Sales Detail - Cardiovascular Three Months Ended March 31, 2024 and 2023 Year-over-Year Change Impact of Foreign Q1 Q1 Currency (in millions) 2024 2023 Reported Basis Fluctuations Operational Basis CARDIOVASCULAR SEGMENT: ICTx UNITED STATES $ 195 $ 183 6.3 % — % 6.3 % INTERNATIONAL
Slide 15: Appendix B Additional Information - Statement of Operations
Appendix B Additional Information - Statement of Operations 15 Q1 2024 Financial & Operational Highlights | April 24, 2024
Slide 16: Appendix B - Statement of Operations Profitability Margins
Appendix B - Statement of Operations Profitability Margins Three Months Ended Adjusted Gross Margin 3/31/2024 3/31/2023 Basis Points Change Gross Margin, as reported 68.7 % 69.3 % (70) Non-GAAP adjustments 1.1 % 1.1 % Gross Margin, adjusted 69.8 % 70.4 % (60) Three Months Ended Adjusted Operating Ma
Slide 17: Appendix C Additional Non-GAAP Reconciliations
Appendix C Additional Non-GAAP Reconciliations 17 Q1 2024 Financial & Operational Highlights | April 24, 2024
Slide 18: Reconciliations: Free Cash Flow
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Free Cash Flow (in millions) 3/31/2024 Cash provided by (used for) operating activities $ 164 Purchases of property, plant and equipment and internal use software (179) Proceeds on disposals of property, plant and equipment 1 Free C
Slide 19: Reconciliations: Net Sales Growth
Appendix C - Additional Non-GAAP Reconciliations Impact of Impact of Foreign Recent Q1 Q1 As Reported Currency Operational Acquisitions/ Organic (in millions) 2024 2023 Basis Fluctuations Basis Divestitures Basis ENDOSCOPY $ 642 $ 577 11.4 % 0.7 % 12.1 % (2.3) % 9.8 % UROLOGY 513 469 9.3 % 0.5 % 9.8
Slide 20: Reconciliations: Debt to Adjusted EBITDA
Appendix C - Additional Non-GAAP Reconciliations 12 Months Ended Reconciliation of Debt to Adjusted EBITDA (in millions) Q2 2023 Q3 2023 Q4 2023 Q1 2024 3/31/2024 Net income (loss) $ 270 $ 504 $ 504 $ 493 $ 1,772 Income tax (benefit) expense 156 105 1 115 378 Interest expense 70 66 65 69 269 Interes
Slide 21: Reconciliations: Adjusted Tax Rate and Electrophysiology Growth
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Three Months Ended Adjusted Tax Rate 3/31/2024 Electrophysiology U.S. Net Sales Growth March 31,2024 Tax Rate, as reported 18.9 % Net sales growth, as reported 85 % Non-GAAP adjustments (8.2) % Impact of foreign currency fluctuation
Slide 22: Reconciliations: Adjusted Operating Margin by Segment
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended March 31, 2024 Adjusted Operating Margin - by Segment MedSurg Cardiovascular Operating Margin, as reported 33.8 % 27.0 % Non-GAAP adjustments 0.0 % (0.1) % Operating Margin, adjusted 33.8 % 26.9 % Three Months Ended March 31, 2023 A
Slide 23: BSX: Acronym Reference Guide
BSX: Acronym Reference Guide 23 Q1 2024 Financial & Operational Highlights | April 24, 2024