Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q3 2019 Earnings Presentation
30 slides from Becton, Dickinson And's earnings presentation, Aug 6, 2019
Slide 1: Third Quarter Results Fiscal Year 2019
Third Quarter Results Fiscal Year 2019 August 6, 2019 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
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: Executive overview
Executive overview Vincent A. Forlenza Chairman and CEO 3 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 4: BD strategy and execution toward advancing the world of health
BD strategy and execution toward advancing the world of health Our long-term strategy is focused on • Providing leading medical technologies and innovative solutions for our customers and their patients, • Driving sustainable healthcare by increasing access, driving better outcomes, mitigating syste
Slide 5: Q3 FY 2019 Business highlights
Q3 FY 2019 Business highlights Strong revenue performance despite macro headwinds • Q3 performance reflects anticipated 2H acceleration • Mid-single digit revenue growth across all three segments • Q3 EPS in-line with our expectations • Good progress with Bard cost and revenue synergy capture • Reaf
Slide 6: Financial performance
Financial performance Christopher Reidy Executive Vice President, CFO and Chief Administrative Officer 6 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 7: Q3 FY 2019 Financial highlights
Q3 FY 2019 Financial highlights Revenue growth: Margin Expansion: Capital deployment: Strong Q3 revenues Q3 margins broadly • $450M debt pay down driven by all three in-line with our in the third quarter segments expectations • 3.7x gross leverage at June 30th Third Quarter Year-to-Date Revenues $4,
Slide 8: Q3 FY 2019 Medical segment update
Q3 FY 2019 Medical segment update Third Quarter Year-to-Date Revenues Comparable Comparable % $ FXN % $ % Growth FXN % Growth Growth(1) Growth(1) Medical segment $2,311 +2.9% +6.0% $6,626 +5.7% +5.0% Medication Delivery Solutions 984 +0.8% +4.2% 2,871 +7.3% +2.8% Medication Management 658 +7.7% +9.2
Slide 9: Q3 FY 2019 Life Sciences segment update
Q3 FY 2019 Life Sciences segment update Third Quarter Year-to-Date Revenues Comparable Comparable % $ FXN % $ % Growth FXN % Growth Growth(1) Growth(1) Life Sciences segment $1,058 (2.0%) +5.4% $3,166 (1.7%) +4.3% Diagnostic Systems 368 +1.7% +6.0% 1,138 (1.2%) +2.2% Preanalytical Systems 407 +0.7%
Slide 10: Q3 FY 2019 Interventional segment update
Q3 FY 2019 Interventional segment update Third Quarter Year-to-Date Revenues Comparable Comparable $ % Growth FXN % $ % Growth FXN % Growth(1) Growth(1) Interventional segment $981 +2.9% +5.2% $2,914 +39.5% +4.8% Peripheral Intervention 350 (0.8%) +2.3% 1,029 +47.7% +2.2% Surgery 349 +3.9% +5.4% 1,0
Slide 11: Q3 FY 2019 Geographic revenue highlights
Q3 FY 2019 Geographic revenue highlights Third Quarter Year-to-Date Revenues Comparable Comparable $ % Growth FXN % $ % Growth FXN % Growth(1) Growth(1) United States $2,440 +4.4% +5.0% $7,168 +13.4% +4.4% International $1,910 (1.6%) +6.5% $5,538 +5.3% +5.2% Developed Markets 3,647 +1.6% +4.9% 10,73
Slide 12: Q3 FY 2019 adjusted income statement
Q3 FY 2019 adjusted income statement As adjusted(1) Q3 FY 2019 % Growth % FXN Growth Q3 FY 2018 Revenues $4,350 1.7% 4.7% $4,278 Comparable % FXN Growth(2) 5.7% Gross profit 2,421 (2.4%) 2.4% 2,480 % of revenues 55.6% 58.0% SSG&A 1,074 1.0% (1.9%) 1,084 % of revenues 24.7% 25.3% R&D 242 6.3% 5.4% 25
Slide 13: Q3 FY 2019 adjusted gross and operating margins
Q3 FY 2019 adjusted gross and operating margins 58.0% Adjusted 55.6% Gross (1.3%) Driven by unfavorable mix, (1.1%) margin including less DCB sales Q3 2018 Performance Currency Q3 2019 26.6% flat 25.4% Adjusted Gross margin (1.3%) (1.2%) OpEx leverage +1.3% Operating margin Q3 2018 Performance Curre
Slide 14: Guidance
Guidance Christopher Reidy Executive Vice President, CFO and Chief Administrative Officer 1 4 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 15: FY 2019 revenue guidance
FY 2019 revenue guidance Comparable Revenues FY 2019 FXN % Growth Guidance Guidance(1) BDX 5.0% to 6.0% Medical 5.0% to 6.0% Life Sciences 4.0% to 5.0% Interventional 4.5% to 5.5% • Reaffirm revenue guidance from May (1) Reflects comparable revenue growth on a currency neutral basis, adjusted to inc
Slide 16: FY 2019 adjusted earnings guidance
FY 2019 adjusted earnings guidance (1) ~12% FXN Growth 6 to 7% Growth ~3% 16 to 17% (~4%) $11.65 to Resins and other raw (~2%) (~1.5%) $11.75 materials (~2%) Flu Impact (~1%) $11.01 Tariffs (~1%) (~5.5%) FY18 FY19 Favorable FY19 Divestiture DCB Impact Estimated FY19 Adjusted Underlying Year-over- He
Slide 17: FY 2019 guidance update
Update to guidance FY 2019 guidance As adjusted August Guidance May Guidance BD Comparable Revenues FXN % Growth(1) 5.0% to 6.0% 5.0% to 6.0% Revenue – FX Impact (~2.5%) (~2.5%) BD Reported Revenues 8% to 9% 8% to 9% Gross margin 56% to 57% 56% to 57% SSG&A (% of sales) 24.5% to 25.5% 24.5% to 25.5%
Slide 18: Executive summary
Executive summary Vincent A. Forlenza Chairman and CEO 1 8 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 19: FY 2019 Planned Product Launches
FY 2019 Planned Product Launches Medical Life Sciences Interventional • BD PhaSeal™ Optima (US) • BD MAX™ – Enteric Viral Panel • Covera™ stent graft (fistula (US) indication) • IV Solutions – 0.45% sodium chloride and lactated ringers • BD Phoenix™ CPO Detect (US) • Venovo™ (large diameter ® venous
Slide 20: Key takeaways
Key takeaways Strong revenue performance despite macro headwinds • Results reflect anticipated 2H acceleration • Revenue performance across all three segments highlights the breadth and diversity of growth drivers across our portfolio • Good progress with Bard cost and revenue synergy capture • Reaf
Slide 21: Advancing the world of health
<3 BD Advancing the world of health
Slide 22: Our focus on sustainable performance
Our focus on sustainable performance BD’s 2018 Sustainability Report was published in July, continuing our commitment to transparency on relevant ESG issues Developing new products and Providing access to affordable solutions that improve medical technologies to resource outcomes, reduce system cost
Slide 23: Q3 FY 2019 & Q3 FY 2018 Adjustment Reconciliations
Q3 FY 2019 & Q3 FY 2018 Adjustment Reconciliations Three Months Ended June 30, 2019 Other Selling and Research and Acquisitions Operating Interest Other Income Diluted Administrative Development and Other (Income) Operating Income Expense, Tax Net Earnings Revenues Gross Profit Expense Expense Restr
Slide 24: YTD FY 2019 & YTD FY 2018 Adjustment Reconciliations
YTD FY 2019 & YTD FY 2018 Adjustment Reconciliations Nine Months Ended June 30, 2019 Other Selling and Research and Acquisitions Operating Interest Other Income Diluted Administrative Development and Other (Income) Operating Income Income, Tax Net Earnings Revenues Gross Profit Expense Expense Restr
Slide 25: Q3 FY 2019 Reconciliation of Reported Diluted EPS to Adjusted
Q3 FY 2019 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 25 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 26: YTD FY 2019 Reconciliation of Reported Diluted EPS to Adjusted
YTD FY 2019 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 26 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 27: FY 2018 & FY2017 Reconciliation of Reported Diluted EPS to Adjusted
FY 2018 & FY2017 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 27 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 28: FY 2019 Reconciliation – FX Impact Emerging, Developed Markets & China
FY 2019 Reconciliation – FX Impact Emerging, Developed Markets & China G A B C=A+B D E F Divestiture H=D+E+F+G I=(A-D)/D J K=(C-H-J)/H BD Divestiture BD Intercompany and Other Reported Adjustments Comparable Reported Bard Q1 (b) Adjustment Adjustments Comparable % Rptd FX Impact FXN % 2019 (a) 2019
Slide 29: FY 2019 Revenue Outlook Reconciliation
FY 2019 Revenue Outlook Reconciliation Q1 Q2 Q3 Q4 FY2018 FY2019 Outlook Revenues Revenues Revenues Revenues Revenues % Change FX Impact % Change FXN BDX Revenue $ 3,080 $ 4,222 $ 4,278 $ 4,402 $ 15,983 8.0% to 9.0% ~2.5% 10.5% to 11.5% Comparable Revenue Growth BD Including Bard FY2018 FY2019 Outlo
Slide 30: FY 2019 EPS Outlook Reconciliation
FY 2019 EPS Outlook Reconciliation FY2019 Outlook Full Year FY2019 Outlook Full Year FY2018 % Increase Adjusted Fully Diluted Earnings per Share $ 11.65 to 11.75 $ 11.01 6.0% to 7.0% Estimated FX Impact ~5.5% Adjusted FXN Growth ~12.0% 30 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dicki
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