Slide 1: Q3 FY24 earnings presentation
Q3 FY24 earnings presentation November 7, 2024 © Solventum 2024. All rights reserved.
Slide 2: Forward-looking statements and use of document
Forward-looking statements and use of document Forward-looking statements This presentation contains forward-looking information about Solventum’s financial results and estimates and business prospects that involve substantial risks and uncertainties. In particular, statements regarding the future p
Slide 3: Executive summary
Executive summary Q3 financial summary:1 • Net sales of $2.082B +0.4%, organic sales growth of +0.3% - Reflects expected normalization of pricing • Adjusted operating income reflects lower gross margins, including the impact from the 3M supply agreement mark-up, and an increase in operating expenses
Slide 4: Q3 FY24 Financial summary
Q3 FY24 Financial summary Dental Segment sales Key metrics Solutions MedSurg $313M -5.2% Reported $1,182M -3.9% Organic +0.1% Reported non- +1.0% Organic GAAP GAAP2 Health Total Solventum1 Information Operating margin 13.2% 22.8% Systems $326M $2,082M +1.5% Reported +0.4% Y/Y Reported +1.5% Organic
Slide 5: MedSurg summary
MedSurg summary Q3 financial results Q3 FY24 Q3 FY23 Y/Y Reported +0.1% Net sales $1,182M $1,180M Organic +1.0% Segment drivers: • Organic growth driven by volumes in Tegaderm I.V. dressings and Medical OEM products 3M V.A.C.® Peel and Place Dressing first- • Declines in traditional NPWT, continued
Slide 6: Dental Solutions summary
Dental Solutions summary Q3 financial results Q3 FY24 Q3 FY23 Y/Y Reported -5.2% Net sales $313M $331M Organic -3.9% Segment drivers: • Volume declines driven by challenging year-over-year comparisons coupled with soft end-market demand 3M Clinpro Clear Fluoride Treatment has a ready release formula
Slide 7: Health Information Systems summary
Health Information Systems summary Q3 financial results Q3 FY24 Q3 FY23 Y/Y Reported +1.5% Net sales $326M $321M Organic +1.5% Segment drivers: • Organic growth driven by continued adoption of 360 Encompass revenue cycle management Solventum 360 Encompass Computer-Assisted • Declines in performance
Slide 8: Purification & Filtration summary
Purification & Filtration summary Q3 financial results Q3 FY24 Q3 FY23 Y/Y Reported -1.5% Net sales $238M $242M Organic -0.3% Segment drivers: • Volume declines in drinking water filtration and dialysis membranes Harvest RC Centrate Chromatographic Clarifier improves biopharmaceutical manufacturing
Slide 9: Raising FY24 organic sales growth and EPS guidance
Raising FY24 organic sales growth and EPS guidance Updated Prior Upper half of Organic sales growth 0% to +1% 0% to +1% Adjusted EPS $6.50 to $6.65 $6.30 to $6.50 Free cash flow $750M to $850M $700M to $800M Note: Solventum’s full-year 2024 guidance is based on Q1 2024 as a carve-out plus the remain
Slide 10: Appendix
Appendix © Solventum 2024. All rights reserved. 10
Slide 11: Non-GAAP financial measures
Non-GAAP financial measures In addition to reporting financial results in accordance with U.S. GAAP, Solventum also provides non-GAAP measures that we use, and plan to continue using, when monitoring and evaluating operating performance and measuring cash available to invest in our business. The adj
Slide 12: Q3 FY24 detailed non-GAAP reconciliation and free cash flow
Q3 FY24 detailed non-GAAP reconciliation and free cash flow Spin-off & separation- Legal entity (Millions, except per share data) Q3 FY24 GAAP Amortization Restructuring Q3 FY24 non-GAAP related costs restructuring Net sales 2,082 2,082 Gross margin 1,165 1 27 1,193 % of sales 56.0% 57.3% R&D 189 (4
Slide 13: Glossary and definitions
Glossary and definitions Organic sales growth Abbreviation Elaboration Total net sales less the impacts of foreign currency and sales from business acquisitions or divestitures for the first 12 months post-transaction EPS Earnings per share Adjusted operating income FCF Free cash flow Operating inco