Danaher Corporation · NYSE:DHR
Danaher — Q4 2021 Earnings Presentation
34 slides from Danaher's earnings presentation, Jan 27, 2022
Slide 1: Danaher Corporation Fourth Quarter 2021 Earnings Release
DANAHER CORPORATION Fourth Quarter 2021 Earnings Release January 27, 2022
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding Danaher’s anticipated future financial performance and any other statements regarding events or developments that we anticipate will or may occur in the future are "forward
Slide 3: 2021 Performance Summary: Revenue
2021 Performance Summary: Revenue Q4 REVENUE FY REVENUE +20.5% +32.0% Core +19.5% Core including Cytiva +25.0% Acquisitions +2.0% FX +1.5% FX -1.0% $8,148 $29,453 $22,284 $6,760 Q4 2020 ($ millions) Q4 2021 FY 2020 ($ millions) FY 2021 Throughout this presentation, with respect to revenue performanc
Slide 4: 2021 Performance Summary: Operating Profit Margin
2021 Performance Summary: Operating Profit Margin Q4 OPERATING PROFIT MARGIN FY OPERATING PROFIT MARGIN +270 BPS +630 BPS Core +240 bps Core +560 bps Acquisitions -25 bps Acquisitions +60 bps Other +55 bps Other +10 bps 26.4% 25.3% 23.7% 19.0% Q4 2020 Q4 2021 FY 2020 FY 2021 Throughout this presenta
Slide 5: 2021 Performance Summary: Adjusted Diluted Net EPS
2021 Performance Summary: Adjusted Diluted Net EPS Q4 ADJUSTED DILUTED NET FY ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE EARNINGS PER COMMON SHARE +29.0% +59.0% $2.69 $10.05 $2.08 $6.31 Q4 2020 Q4 2021 FY 2020 FY 2021 For the definition of Adjusted Diluted Net EPS, please refer to the accompanyi
Slide 6: 2021 Performance Summary: Free Cash Flow
2021 Performance Summary: Free Cash Flow FY FREE CASH FLOW +30.5% $7,077 $5,426 FY 2020 ($ millions) FY 2021 For the definition of Free Cash Flow, please refer to the accompanying information required by Regulation G, located at the end of this presentation and on the "Investors" section of Danaher'
Slide 7: Fourth Quarter 2021: Life Sciences
Fourth Quarter 2021: Life Sciences REVENUE OPERATING PROFIT MARGIN +20.5% +300 BPS Core +17.0% Core +290 bps Acquisitions +4.5% Acquisitions -105 bps FX -1.0% Other +115 bps $4,046 27.1% $3,361 24.1% Q4 2020 ($ millions) Q4 2021 Q4 2020 Q4 2021 7
Slide 8: Fourth Quarter 2021: Diagnostics
Fourth Quarter 2021: Diagnostics REVENUE OPERATING PROFIT MARGIN +29.5% +470 BPS Core +29.0% Core +415 bps Acquisitions +1.0% Acquisitions +55 bps FX -0.5% $2,881 31.0% $2,227 26.3% Q4 2020 ($ millions) Q4 2021 Q4 2020 Q4 2021 8
Slide 9: Fourth Quarter 2021: Environmental & Applied Solutions
Fourth Quarter 2021: Environmental & Applied Solutions REVENUE OPERATING PROFIT MARGIN +4.0% -410 bps Core +7.5% Core -410 bps Acquisitions -3.0% FX -0.5% 23.2% $1,172 $1,221 19.1% Q4 2020 ($ millions) Q4 2021 Q4 2020 Q4 2021 9
Slide 10: Guidance
GUIDANCE 10
Slide 11: Q&A
Q&A 11
Slide 12: DANAHER
DANAHER
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES THREE-MONTH PERIODS AND YEARS ENDED DECEMBER 31, 2021 AND DECEMBER 31, 2020
Slide 14: Table of Contents and Forward-Looking Statements Disclosure
TABLE OF CONTENTS Page 1 Core Sales Growth by Segment, Core Sales Growth Including Cytiva by Segment and Base Business Core Sales Growth 2 Forecasted Core Sales Growth and Base Business Core Sales Growth 3 Segment Sales, Operating Profit and Adjusted Operating Profit 4 Adjusted EBITDA and Adjusted E
Slide 15: Core Sales Growth by Segment
DANAHER CORPORATION Core Sales Growth by Segment, Core Sales Growth Including Cytiva by Segment and Base Business Core Sales Growth % Change Three-Month Period Ended December 31, 2021 vs. Comparable 2020 Period Segments Environmental & Total Company Life Sciences Diagnostics Applied Solutions Total
Slide 16: Forecasted Core Sales Growth and Base Business Core Sales Growth
DANAHER CORPORATION Forecasted Core Sales Growth and Base Business Core Sales Growth 1 % Change Three-Month % Change Year Ending Period Ending April 1, December 31, 2022 vs. 2022 vs. Comparable Comparable 2021 2021 Period Period Core sales growth (non-GAAP) ~10% +Mid-single digit Impact of COVID-19
Slide 17: Segment Sales, Operating Profit and Adjusted Operating Profit
DANAHER CORPORATION Segment Sales, Operating Profit and Adjusted Operating Profit ($ in millions) Three-Month Period Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Sales (GAAP) Life Sciences $ 4,046 $ 3,361 $ 14,958 $ 10,576 Diagnostics 2,881 2,227 9,844 7,4
Slide 18: Adjusted EBITDA and Adjusted EBITDA Margin: Q4 2021
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2021 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 1,788 Interest, Net 55 4 Other Nonoperating (Inco
Slide 19: Adjusted EBITDA and Adjusted EBITDA Margin: Q4 2020
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended December 31, 2020 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 1,241 Interest, Net 68 Other Nonoperating (Income
Slide 20: Adjusted EBITDA and Adjusted EBITDA Margin: Year 2021
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2021 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 6,347 Interest, Net 227 Other Nonoperating (Income) Expense 4 (
Slide 21: Adjusted EBITDA and Adjusted EBITDA Margin: Year 2020
DANAHER CORPORATION Adjusted EBITDA and Adjusted EBITDA Margin ($ in millions) Year Ended December 31, 2020 Environmental & Applied Life Sciences Diagnostics Solutions Other Total Company Net Earnings from Continuing Operations (GAAP) $ 3,646 Interest, Net 204 Other Nonoperating (Income) Expense 4 (
Slide 22: Other Non-GAAP Adjusted P&L Measures: Q4 2021
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2021 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating
Slide 23: Other Non-GAAP Adjusted P&L Measures: Q4 2020
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended December 31, 2020 Earnings Net earnings from Diluted net from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating
Slide 24: Other Non-GAAP Adjusted P&L Measures: Year 2021
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2021 Net earnings from Diluted net Earnings from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating Operating befo
Slide 25: Other Non-GAAP Adjusted P&L Measures: Year 2020
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Year Ended December 31, 2020 Net earnings from Diluted net Earnings from continuing earnings per continuing operations for common operations calculation of share from Gross profit Operating Operating befo
Slide 26: Other Non-GAAP Adjusted P&L Measures: Footnotes
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) A Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above): Thr
Slide 27: Other Non-GAAP Adjusted P&L Measures: Footnotes (continued)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) I Discrete tax adjustments and other tax-related adjustments for both the three-month period and year ended December 31, 2021, include the impact of net discrete tax benefits of $120 million (or $0.16 per
Slide 28: Adjusted Average Common Stock and Diluted Shares Outstanding
DANAHER CORPORATION Adjusted Average Common Stock and Common Equivalent Diluted Shares Outstanding (shares in millions) Three-Month Period Ended Year Ended December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020 Average common stock and common equivalent shares outstanding - diluted
Slide 29: Year-Over-Year Core Operating Margin Changes: Q4
DANAHER CORPORATION Year-Over-Year Core Operating Margin Changes from Continuing Operations Segments Environmental & Applied Total Company Life Sciences Diagnostics Solutions Three-Month Period Ended December 31, 2020 Operating Profit Margins from Continuing Operations (GAAP) 23.70 % 24.10 % 26.30 %
Slide 30: Year-Over-Year Core Operating Margin Changes: Full Year
DANAHER CORPORATION Year-Over-Year Core Operating Margin Changes from Continuing Operations Segments Environmental & Applied Total Company Life Sciences Diagnostics Solutions Year Ended December 31, 2020 Operating Profit Margins from Continuing Operations (GAAP) 19.00 % 19.40 % 20.80 % 22.70 % Full
Slide 31: Free Cash Flow from Continuing Operations and Conversion Ratio
DANAHER CORPORATION Free Cash Flow from Continuing Operations and Free Cash Flow from Continuing Operations to Net Earnings from Continuing Operations Conversion Ratio ($ in millions) Three-Month Period Ended Year Ended December 31, December 31, Year-over-Year December 31, December 31, Year-over-Yea
Slide 32: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. M
Slide 33: Statement Regarding Non-GAAP Measures (continued)
DANAHER CORPORATION Statement Regarding Non-GAAP Measures ◦ Amortization of Intangible Assets. We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we c
Slide 34: DANAHER
DANAHER