Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Credit Suisse Annual Technology Conference 2009
15 slides from Agilent Technologies's conference presentation, Dec 1, 2009
Slide 1: Agilent Technologies
Agilent Technologies Credit Suisse Annual Technology Conference Ron Nersesian December 1, 2009 President and General Manager The Phoenician Electronic Measurement Group p Scottsdale,, AZ
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward forward-looking looking statements (including, (including without limitation limitation, statements regarding the enhancement of shareholder value, restructuring activities, the acquisition of Varian, Inc., and information and future guidance
Slide 3: Company Overview
Company Overview Primary Businesses FY09 Revenue: $2.4B FY09 Revenue: $0.9B FY09 Revenue: $1.2B Electronic Chemical Analysis Life Sciences LTM Revenue* Measurement Group LTM Revenue* Group LTM Revenue* Group $2.7B $1.1B $1.0B above reflects new segmentation that will take effect in Q1 2010 Currently
Slide 4: Agilent's Q409 Business Mix
Agilent’s Q409 Business Mix Balanced portfolio reduces volatility End Markets Global Reach Multi-Segment Multi Segment Balanced Exposure graphs represent revenue distribution Page 4
Slide 5: Major Market Drivers and Opportunities Created
Major Market Drivers and Opportunities Created Market Drivers Agilent Opportunity Communications Lead in development of new 4G People want to communicate more wireless testing solutions Electronic information; from anywhere! M Measurement Homeland Security Applying world-class measurement Threat of
Slide 6: Electronic Measurement 4-Point Strategy
Electronic Measurement 4-Point Strategy • R&D for Technology • Application Leadership Expertise and Solutions • Clear Performance • Wireless Standards Differentiation • Digital Standards • Value Pricing • Wireline • Aerospace/Defense Technology Differentiate • Education Leadership through i Hi in Hi
Slide 7: Agilent's Commitment
Agilent’s Commitment Deliver performance consistent with Agilent’s Operating Model • Agilent Operating Model • 20% ROIC on average across the cycle • 30-40% operating profit incremental/decremental • Operating cash flow positive at every point in the cycle g • Management incentives aligned g with op
Slide 8: Q409 Summary of Results
Q409 Summary of Results* Strong top and bottom line beat; guided to above-consensus Q1 • Orders momentum continues: stronger than seasonal sequential order growth at 19%; healthy book-to-bill at 1.09 • Beat expectations: Q4 top line beat consensus; Q4 EPS came in $0.09 above consensus; guided to abo
Slide 9: FY10 - Positioned for Growth; Operating Discipline Remains
FY10 - Positioned for Growth; Operating Discipline Remains • Agilent Operating Model – rapid response to economic headwinds • Bio-Analytical Measurement – positioned for growth • Electronic Measurement Group (inc. Semi/Board Test) Focus on R&D, restructure to achieve 12% operating margin at $2.4B in
Slide 10: Agilent Technologies
Agilent Technologies Credit Suisse Annual Technology Conference Ron Nersesian December 1, 2009 President and General Manager The Phoenician Electronic Measurement Group p Scottsdale,, AZ
Slide 11: Appendix
Appendix 3°5-- Agilent Technologies
Slide 12: Summary of Agilent Restructuring Programs
Summary of Agilent Restructuring Programs on track to deliver $525 million in annualized savings Annual Full Benefit Announced Restructuring Cost People Savings Timing Est. Temps elimination, targeted restructuring $65M $55M 500 Q4 2009 (ann 12/17/08) (ann. Exited inspection business, restructure Gl
Slide 13: Agilent Technologies, Inc. Net Cash Details
AGILENT TECHNOLOGIES, INC. NET CASH DETAILS (IN MILLIONS) PRELIMINARY Year over Year Sequential Q4'09 Q4'08 Q3'09 Delta % Delta % Cash and cash equivalents $ 2,479 $ 1,405 $ 1,479 Restricted cash and cash equivalents 1,566 1,582 1,568 Investments - debt securities 36 96 49 Long-term debt (1,516) (1,
Slide 14: Agilent Technologies, Inc. Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (IN MILLIONS) PRELIMINARY Agilent Numerator: Q4'09 Q4'08 Adjusted income from operations $ 150 $ 271 Less: Taxes and Other (income)/expense 26 42 (a) Agilent return 124 229 Agilent return annualized $ 496 $ 916 Denominator: Agilent assets (b) $ 3,566
Slide 15: Reconciliation from GAAP to Non-GAAP
AGILENT TECHNOLOGIES, INC RECONCILIATION FROM GAAP TO NON-GAAP THREE MONTHS ENDED OCTOBER 31, 2009 (Unaudited) Non-GAAP Adjustments Acceleration of Share-Based Restructuring Compensation Patent and Other Asset Business Expense Related to Intangible Pension Litigation Litigation Adjustment for (In mi
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