Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Q3 2023 Earnings Presentation
22 slides from Boston Scientific's earnings presentation, Oct 26, 2023
Slide 1: Q3 2023 Highlights
Q3 2023 Highlights October 26, 2023 1 Q3 2023 Financial & Operational Highlights | October 26, 2023
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: Q3 2023 Highlights
Q3 2023 Highlights Financial Highlights Operational Highlights • Net sales growth: • Announced positive 12-month results from the ADVENT pivotal clinical trial of the FARAPULSE™ Pulsed Field Ablation (PFA) • +11.2% reported, +11.1% operational*, +10.2% System, which met the primary safety and effica
Slide 4: Reported Net Sales by Segment and Business
Reported Net Sales by Segment and Business Q3 2023 Reported Net Sales: $3.527B Net Sales by Business; Segment Percentage of Total Net Sales MedSurg NM Cardiology $229M 38% $190M EP Urology $483M $552M CRM Cardiology $1.647B $323M Watchman Endo $629M $583M ICTx PI $538M Cardiovascular 62% 4 Q3 2023 F
Slide 5: MedSurg Performance Summary
MedSurg Performance Summary Measure Q3 2023 Q3 2022 Change Y/Y ($ in millions) Reported Net Sales $1,341M $1,213M +10.6% Adjusted Operating Margin* 33.8% 30.0% +380 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency exchange
Slide 6: Cardiovascular Performance Summary
Cardiovascular Performance Summary Measure Q3 2023 Q3 2022 Change Y/Y ($ in millions) Reported Net Sales $2,185M $1,958M +11.6% Adjusted Operating Margin* 26.5% 23.4% +310 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency e
Slide 7: Living Our Values: ESG Update
Living Our Values: ESG Update Building a sustainable Advancing care by Accelerating STEM supply chain addressing disparities opportunities Completed materiality Completed materiality assessment and assessment and adopted new adopted new framework for BSC ESG framework for BSC ESG strategy, reporting
Slide 8: Q3 2023 Net Sales vs. Q3 2022
Q3 2023 Net Sales vs. Q3 2022 Q3:23 Reported Organic* Growth Net Sales vs Q3:22 (in millions) Endoscopy $629 11% Urology $483 11% Neuromodulation $229 3% MedSurg $1,341 9% Interventional Cardiology Therapies $583 7% Watchman $323 23% Cardiac Rhythm Management $552 5% Electrophysiology $190 27% Cardi
Slide 9: Income Statement Information
Income Statement Information Non-GAAP Reconciliation Three Months Ended September 30, 2023 (unaudited) Restructuring Acquisition / and Intangible Divestitures- Restructuring- Litigation- Investment Asset Related Net Related Net Related Net Portfolio EU MDR Deferred Tax GAAP Amortization Impairment C
Slide 10: Working Capital & Cash Flow Metrics
Working Capital & Cash Flow Metrics Days Sales Outstanding (DSO) Adjusted Free Cash Flow* Sep Jun Mar Dec Sep Q3 Q3 2023 2023 2023 2022 2022 2023 2022 55 54 55 56 54 $582M $626M Days Inventory on Hand (DIOH) Capital Expenditures Sep Jun Mar Dec Sep Q3 Q3 2023 2023 2023 2022 2022 2023 2022 201 194 17
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 Q3 2023 Financial & Operational Highlights | October 26, 2023
Slide 13: Appendix A - Net Sales Detail - MedSurg
Appendix A - Net Sales Detail - MedSurg Three Months Ended September 30, 2023 and 2022 Year-over-Year Change Impact of Foreign Q3 Q3 Currency (in millions) 2023 2022 Reported Basis Fluctuations Operational Basis MEDSURG SEGMENT: ENDOSCOPY UNITED STATES $ 382 $ 342 11.8 % — % 11.8 % INTERNATIONAL 247
Slide 14: Appendix A - Net Sales Detail - Cardiovascular
Appendix A - Net Sales Detail - Cardiovascular Three Months Ended September 30, 2023 and 2022 Year-over-Year Change Impact of Foreign Q3 Q3 Currency (in millions) 2023 2022 Reported Basis Fluctuations Operational Basis CARDIOVASCULAR SEGMENT: ICTx UNITED STATES $ 182 $ 190 (4.0) % — % (4.0) % INTERN
Slide 15: Appendix B Additional Information - Statement of Operations
Appendix B Additional Information - Statement of Operations 15 Q3 2023 Financial & Operational Highlights | October 26, 2023
Slide 16: Appendix B - Statement of Operations Profitability Margins
Appendix B - Statement of Operations Profitability Margins Three Months Ended Adjusted Gross Margin 9/30/2023 9/30/2022 Basis Points Change Gross Margin, as reported 68.8 % 69.1 % (30) Non-GAAP adjustments 1.4 % 1.6 % Gross Margin, adjusted 70.2 % 70.7 % (50) Three Months Ended Adjusted Operating Ma
Slide 17: Appendix C Additional Non-GAAP Reconciliations
Appendix C Additional Non-GAAP Reconciliations 17 Q3 2023 Financial & Operational Highlights | October 26, 2023
Slide 18: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Impact of Impact of Foreign Recent Q3 Q3 As Reported Currency Operational Acquisitions / Organic (in millions) 2023 2022 Basis Fluctuations Basis Divestitures Basis ENDOSCOPY $ 629 $ 559 12.6 % (0.7) % 11.9 % (1.4) % 10.6 % UROLOGY 483 433 11.5 % (0.5
Slide 19: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Adjusted Free Cash Flow (in millions) 9/30/2023 9/30/2022 Cash provided by (used for) operating activities $ 698 $ 470 Purchases of property, plant and equipment and internal use software (190) (150) Proceeds from sale of of propert
Slide 20: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations 12 Months Ended Reconciliation of Debt to Adjusted EBITDA (in millions) Q4 2022 Q1 2023 Q2 2023 Q3 2023 9/30/2023 Net income (loss) $ 140 $ 314 $ 270 $ 504 $ 1,228 Income tax (benefit) expense 256 131 156 105 648 Interest expense 64 65 70 66 264 Inter
Slide 21: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Nine Months Ended Three Months Ended Net Sales Growth 9/30/2023 Adjusted Tax Rate 9/30/2023 Net sales growth, as reported 11.4 % Tax Rate, as reported 17.3 % Impact of foreign currency fluctuations 1.2 % Non-GAAP adjustments (4.9) % Net sales growth,
Slide 22: BSX: Acronym Reference Guide
BSX: Acronym Reference Guide 22 Q3 2023 Financial & Operational Highlights | October 26, 2023