Ge Healthcare Technologies Inc. · NASDAQ:GEHC
Ge Healthcare Technologies — FY2022 Earnings Presentation
34 slides from Ge Healthcare Technologies's earnings presentation, Jan 30, 2023
Slide 1: 4Q and Full Year 2022 Earnings Presentation
4Q and Full Year 2022 Earnings Presentation January 30, 2023 © 2023 GE HealthCare. GE is a trademark of General Electric Company used under trademark license.
Slide 2: Forward-looking statements
Forward-looking statements This presentation contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,”
Slide 3: 4Q 2022 Consolidated performance summary
4Q 2022 Consolidated performance summary Adjusted EBIT* & Revenues Adjusted EBIT margin* Adjusted EPS* Free cash flow* Book-to-Bill** $4.9B $844M $1.31 $(0.05) YoY $987M $436M YoY 1.07x 17.1% margin (90) bps YoY Standalone Adjusted EBIT Standalone Adjusted EPS* of 13% Organic growth*-a) margin* of 1
Slide 4: FY 2022 Consolidated performance summary
FY 2022 Consolidated performance summary Adjusted EBIT* & Revenues Adjusted EBIT margin* Adjusted EPS* Free cash flow* Book-to-Bill** $18.3B $2.9B $4.63 $(0.54) YoY $1.8B $(999)M YoY 1.08x 15.6% margin (240) bps YoY Standalone Adjusted EBIT Standalone Adjusted EPS* of 87% Free cash flow 7% Organic g
Slide 5: 4Q 2022 Revenue performance
4Q 2022 Revenue performance Total revenue $4.9B Business Segment Products & Services** Organic revenue growth* +13%-a) Reported revenue growth +8% Ultrasound, $956M, +7%*-a) Products, Services, $3.3B, +13% $1.6B, (2)% PCS, $786M, +10%*-a) Imaging, $2.7B, +18%*-a) PDx, $473M, +2%*-a) Note: Percent ch
Slide 6: Recovering margin with disciplined pricing and cost actions
Recovering margin with disciplined pricing and cost actions Margin Expansion Opportunity with Price & Cost Taking Action to Improve Delivery, Price, and Cost Improvements • Gross margin was down YoY in 4Q driven by the mix of Price YoY products and services, though improved sequentially from 3Q • Pr
Slide 7: 4Q'22 Imaging results
4Q’22 Imaging results 4Q’22 4Q’21 YoY Revenues $2,709M $2,437M 18%*-a) Segment EBIT $321M $317M 1% Segment EBIT margin 11.8% 13.0% (120) bps Highlights • Strong Organic revenue growth* led by MI/CT, MR, and surgery due to NPIs as well as supply chain fulfillment improvements • EBIT margin down YoY;
Slide 8: 4Q'22 Ultrasound results
4Q’22 Ultrasound results 4Q’22 4Q’21 YoY Revenues $956M $898M 7%*-a) Segment EBIT $285M $278M 3% Insert New Image Here Segment EBIT margin 29.8% 31.0% (120) bps Highlights • Organic revenue growth* led by Radiology and Primary Care, Women’s Health, and Cardiovascular; strong handheld growth • EBIT m
Slide 9: 4Q'22 Patient Care Solutions results
4Q’22 Patient Care Solutions results 4Q’22 4Q’21 YoY Revenues $786M $735M 10%*-a) Segment EBIT $130M $91M 43% Segment EBIT margin 16.5% 12.4% 410 bps Highlights • Improvement in revenue driven by impact of supply chain resiliency and price actions • EBIT margin up YoY; improving price and volume as
Slide 10: 4Q'22 Pharmaceutical Diagnostics results
4Q’22 Pharmaceutical Diagnostics results 4Q’22 4Q’21 YoY Revenues $473M $500M 2%*-a) Segment EBIT $109M $139M (22)% Segment EBIT margin 23.0% 27.8% (480) bps Highlights • Revenue impacted by fewer procedures in China, normalization of U.S. customer inventory • EBIT margin down YoY; inflationary pres
Slide 11: Cash flow performance
Cash flow performance 4Q'22 Free Cash Flow* FY2022 Free Cash Flow* $987M $2,827M $551M $1,828M 4Q’21 4Q’22 2021 2022 • Increased with improvement in supply chain and collections • Declined due to supply chain pressures and lower Adjusted EBIT* Robust and Consistent Cash Flow Generator with Disciplin
Slide 12: Aligning capital allocation strategy
Aligning capital allocation strategy Investing in Innovation to Drive Minority Investments & Organic Revenue Growth* M&A Strategic Collaborations • Increasing R&D and Capex • Disciplined Investments • Augmented Product Pipeline • Focus on Differentiation and • Adjacent Opportunities, e.g., • Early E
Slide 13: 2023 Outlook
2023 Outlook 2022 2023E Organic Growth*-a) 7% 5% to 7% Adjusted EBIT Margin* 14.5% 15.0% - 15.5% Standalone-b) Adjusted ETR* 23% 23% - 25% Adjusted EPS* $3.38 $3.60 - $3.75 Standalone-b) Growth of 7%-11% FCF Conversion* 87% 85%+-c) * Non-GAAP financial measure. See appendix for reconciliation of his
Slide 14: Investing in future growth
Investing in future growth M&A | Agreement to acquire IMACTIS CT Navigation PDx Investment | $80 million in iodinated contrast solutions manufacturing capacity in Europe Imaging | SIGNA Experience with AIR Recon DL Patient Care Solutions | Portrait Mobile patient Ultrasound Upgrade to Cardio | monit
Slide 15: Q&A
Q&A 4Q 2022 Earnings Presentation
Slide 16: Summary
Summary • Strong Organic revenue growth* Purpose-driven culture: • Optimizing through lean; margin expansion opportunity driven by price, volume, and productivity improving patient • Investing in high-growth areas • Strong backlog as we enter 2023 outcomes & increasing customer productivity *Non-GAA
Slide 17: Appendix
Appendix 4Q 2022 Earnings Presentation
Slide 18: Total revenue to Organic revenue
Total revenue to Organic revenue ($ in millions) Three months ended December 31 Years ended December 31 Unaudited 2022 2021 % change 2022 2021 % change Total revenues $ 4,938 $ 4,589 8 % $ 18,341 $ 17,585 4 % Less: Acquisitions(a) 63 — 239 — Less: Dispositions(b) — — — — Less: Foreign currency excha
Slide 19: Segment revenue to Organic revenue
Segment revenue to Organic revenue ($ in millions) Three months ended December 31 Years ended December 31 Unaudited 2022 2021 % change 2022 2021 % change Imaging revenues $ 2,709 $ 2,437 11 % $ 9,985 $ 9,433 6 % Less: Acquisitions(a) — — — — Less: Dispositions(b) — — — — Less: Foreign currency excha
Slide 20: Net income to Adjusted EBIT
Net income to Adjusted EBIT ($ in millions) Three months ended December 31 Years ended December 31 Unaudited 2022 2021 % change 2022 2021 % change Net income attributable to GE HealthCare $ 554 $ 564 (2) % $ 1,916 $ 2,247 (15) % Net income margin 11.2 % 12.3 % (110) bps 10.4 % 12.8 % (240) bps Add:
Slide 21: Net income to Adjusted net income
Net income to Adjusted net income ($ in millions) Three months ended December 31 Years ended December 31 Unaudited 2022 2021 % change 2022 2021 % change Net income attributable to GE HealthCare $ 554 $ 564 (2) % $ 1,916 $ 2,247 (15) % Net income margin 11.2 % 12.3 % (110) bps 10.4 % 12.8 % (240) bps
Slide 22: Cash from operating activities to Free cash flow
Cash from operating activities to Free cash flow ($ in millions) Three months ended December 31 Years ended December 31 Unaudited 2022 2021 % change 2022 2021 % change Cash from (used for) operating activities – continuing operations $ 1,063 $ (11) F $ 2,134 $ 1,607 33 % Cash flow conversion 111 % 7
Slide 23: EPS to Adjusted EPS
EPS to Adjusted EPS $ in dollars Three months ended December 31 Year ended December 31 Unaudited 2022 2021 $ change 2022 2021 $ change Basic and diluted earnings per share - Continuing operations $ 1.21 $ 1.24 $ (0.03) $ 4.18 $ 4.91 $ (0.73) Add: Non-operating benefit (income) costs (0.00) 0.00 (0.0
Slide 24: Standalone Adjusted EBIT
Standalone Adjusted EBIT Three months ended December 31 Year ended December 31 ($ in millions) 2022 2022 Net income attributable to GE HealthCare $ 554 $ 1,916 Add: Interest and other financial charges - net 59 77 Add: Non-operating benefit (income) costs (1) (5) Less: Benefit (provision) for income
Slide 25: Standalone Adjusted Net income
Standalone Adjusted Net income ($ in millions) Three months ended December 31 Year ended December 31 2022 2022 Net income attributable to GE HealthCare $ 554 $ 1,916 Add: Non-operating benefit (income) costs (1) (5) Add: Restructuring costs(a) 36 146 Add: Acquisition and disposition related charges
Slide 26: Standalone Adjusted EPS
Standalone Adjusted EPS $ in dollars Three months ended December 31 Year ended December 31 2022 2022 Basic and diluted earnings per share - Continuing operations $ 1.21 $ 4.18 Add: Non-operating benefit (income) costs (0.00) (0.01) Add: Restructuring costs(a) 0.08 0.32 Add: Acquisition and dispositi
Slide 27: Non-GAAP P&L Reconciliations - FY 2022
Non-GAAP P&L Reconciliations - FY 2022 ($ in millions) Amortization Non- Income (loss) Acquisition, Spin off and Gain/loss of of acquisition Investment Operating Tax Effect of from GAAP Restructuring disposition separation business related revaluation benefit Reconciling discontinued Non-GAAP Report
Slide 28: Non-GAAP P&L Reconciliations - FY 2021
Non-GAAP P&L Reconciliations - FY 2021 ($ in millions) Amortization Non- Income (loss) Acquisition, Spin off and Gain/loss of of acquisition Investment Operating Tax Effect of from GAAP Restructuring disposition separation business related revaluation benefit Reconciling Certain Tax discontinued Non
Slide 29: Acronyms
Acronyms CT Computed Tomography MI/CT Molecular Imaging and Computed Tomography MR Magnetic Resonance NPIs New Product Introductions PET/CT Positron Emission Tomography / Computed Tomography 4Q 2022 Earnings Presentation 29
Slide 30: Definitions
Definitions Sales of medical equipment, contrast agents (PDX), software licenses (excludes hosting/SaaS), Products Options and Upgrades Maintenance and repair services for equipment, training, parts, software hosting (Software as a Services Service (SaaS)) Book-to-Bill Total orders divided by total
Slide 31: Non-GAAP financial measures
Non-GAAP financial measures Adjusted Net Income: Net income attributable to GE HealthCare excluding (1) Non-operating benefit costs; (2) restructuring costs; (3) The non-GAAP financial measures presented in this presentation are supplemental measures of GE HealthCare’s performance and its acquisitio
Slide 32: Non-GAAP Financial Measures in Outlook
Non-GAAP Financial Measures in Outlook GE HealthCare calculates forward-looking non-GAAP financial measures, including Organic revenue growth, Adjusted EBIT margin, Adjusted ETR, Adjusted EPS, and Free cash flow conversion based on internal forecasts that omit certain amounts that would be included
Slide 33: Slide 33
Slide 34: Upcoming calendar
Upcoming calendar Citi Healthcare Services, MedTech, Tools & HICT Conference March 1, 2023 Oppenheimer 33rd Annual Healthcare Conference March 14, 2023 4Q 2022 Earnings Presentation 34
GE HealthCare Technologies — FY2022 Earnings Presentation on 6ix