Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — 2024 J.P. Morgan Healthcare Conference
28 slides from Agilent Technologies's conference presentation, Jan 9, 2024
Slide 1: 2024 JP Morgan Healthcare Conference
2024 JP Morgan Healthcare Conference Agilent Presentation January 9, 2024
Slide 2: Safe Harbor Statement and Footnotes
Safe Harbor Statement and Footnotes These presentations contain forward-looking statements (including, without limitation, information, and future guidance on the company’s goals, priorities, revenue, revenue growth, earnings per share, operating margin, operating cash flow, capital expenditures, ca
Slide 3: Agilent Technologies: Growth over the long-term
Agilent Technologies: Growth over the long-term FY23 Revenue $6.8B +7% +100 bps/yr +15% FY23 OP%(1) 27.4% 4 year Compound Annual Revenue Growth 4 year Operating Margin Expansion(1) 4 year Compound Annual EPS Growth(1) Non- Chemicals & Instrumentation Advanced Pharma & instrumentation Materials Biote
Slide 4: Agilent's shareholder value creation model driving strong revenue and earnings growth
Agilent’s shareholder value creation model driving strong revenue and earnings growth Above Market Operating Margin Balanced Capital z Growth Expansion Deployment 5 – 7% 50 bps to Continued balanced Core 100 bps deployment Delivering leveraged earnings growth 4 2024 J.P. Morgan Healthcare Conference
Slide 5: Our 'Build and Buy' growth strategy continues to deliver
Our ‘Build and Buy’ growth strategy continues to deliver Above Market Organic Growth Operating Margin Expansion(1)(2) Superior Earnings Growth(1) 7% ~900 15% BPS 27.4% $5.44 CAGR $6.8B CAGR Expansion 18.5% $4.0B $1.74 FY15 FY23 FY15 FY23 FY15 FY23 REVENUE OPERATING MARGIN EARNINGS PER SHARE (1) Pres
Slide 6: Strong cash generation enables balanced capital deployment
Strong cash generation enables balanced capital deployment Robust Cash Generation Investing for Growth Since $1.8B M&A: $3.0B FY15 17% Reported CAGR Since Cap Ex: $1.6B FY15 $0.5B Returning Capital to Shareholders Since Dividends: $1.8B FY15 FY15 FY23 Share Since OPERATING CASH FLOW Repurchases: $5.
Slide 7: A diversified business
A diversified business Multiple growth drivers Attractive long- term markets 7 2024 J.P. Morgan Healthcare Conference
Slide 8: Agilent competes in large, attractive growth markets
Agilent competes in large, attractive growth markets The $65B Opportunity 4-6% Long-Term growth Environmental Food Chemical & Pharma & Clinical Academic & Forensics Advanced Biotech & Diagnostics & Government Materials $21B(1) $15B(1) $13B(1) $6B(1) $5B(1) $5B(1) 5–7% 5–7% 3–5% 2–4% 2–4% 3–5% LT gro
Slide 9: Pharma & Biotech was challenged in '23, but long-term drivers remain
Pharma & Biotech was challenged in ‘23, but long-term drivers remain Pharma & Biotech Agilent FY23: $2.4B, -2% growth Market Drivers: o Changing demographics are driving increased health care spending o Success of personalized medicines prompting further investment into innovative biologic- based th
Slide 10: Opportunities in Applied, Academic and Clinical Markets
Opportunities in Applied, Academic and Clinical Markets Applied Markets (1) Academic & Government Agilent FY23: $2.8B, +3% growth Agilent FY23: $0.6B, +6% growth Market Drivers: Market Drivers: o Strong government funding for o Strong demand for PFAS testing capabilities with new Biomedical research
Slide 11: Regional opportunities expected to fuel long-term growth
Regional opportunities expected to fuel long-term growth Americas: +8% CAGR* China: +8% CAGR* US Chips & Science Act driving semi investment Government investment in healthcare to service PFAS regulation by US EPA an aging population and IRA funding fuel environmental growth Europe: +6% CAGR* India:
Slide 12: Agilent CrossLab Services
Agilent CrossLab Services Driving competitive differentiation, durable growth and profitability for Agilent CrossLab Group Revenue o Our best-in-class FY23 Revenue Breakdown Customer Service $1.6B Organization drives Instrument customer Installation Services Contracts satisfaction and $0.3B 18% $1.0
Slide 13: Accelerating Agilent's growth in Biopharma
Accelerating Agilent’s growth in Biopharma Biopharma is expected to be the main growth opportunity for Agilent o We are continuing to invest to deliver the Evolving Pharma Revenue Mix innovative solutions that Biopharma $2.4B customers need Biopharma o The Inflation Reduction Act provisions may 43%
Slide 14: Agilent's leadership role in analytical tools for biotherapeutics
Agilent’s leadership role in analytical tools for biotherapeutics From precision analysis to GMP-grade manufacturing: A full-spectrum approach Drug Research Drug Development Drug Manufacturing mAb & Protein Oligonucleotide Therapeutics Therapeutics Peptide DNA/RNA Vaccines & Therapeutics Therapeutic
Slide 15: Oligonucleotide therapeutics move toward larger patient populations
Oligonucleotide therapeutics move toward larger patient populations FY23 Revenue: $350M+ FY23 Growth: 19% 4 year CAGR: 30%+ Oligo Tx CDMO SAM Forecast(1) Expanding Treatment Targets Indication Potential Active NASD $3.3B NASD is supporting 50+ clinical Area Patients Program CRISPR Guides & commercia
Slide 16: Agilent in Cell Analysis – Differentiated portfolio focused on growth
Agilent in Cell Analysis – Differentiated portfolio focused on growth FY23 Revenue: ~$400M+ Market TAM: $5B(1) 4 year CAGR: 10%+ LT Growth: 5-7%(1) Investing in high growth Strong end markets with robust Broad and compelling segments long-term drivers workflow solutions Immunology, Immuno-oncology,
Slide 17: PFAS – Increased focus on emerging "forever chemicals"
PFAS – Increased focus on emerging “forever chemicals” New regulations, funding and consumer awareness driving testing demand globally Market Drivers Agilent Industry Leading Solutions $250M(1) SAM Opportunity 15-20%(1) LT Market Growth o US & European regulations driving rapid o Complete workflow s
Slide 18: Advanced Materials Market – an engine of technology innovation
Advanced Materials Market(1) – an engine of technology innovation Well established leadership position enables a unique growth opportunity for Agilent Advanced Materials SAM ($1.1B) Semiconductors: $300M market(2), +8% LT Growth(2) o Long-term semi demand is driven by the high-growth technologies th
Slide 19: Further digitizing Agilent's business with AI
Further digitizing Agilent’s business with AI Contributing to future growth and continued margin expansion Customers Operations Lowering labor costs, improving and Reducing our costs and improving simplifying the interpretation of results speed-to-market Technology from our Virtual Virtual instrumen
Slide 20: ESG is tied to our mission to advance the quality of life
ESG is tied to our mission to advance the quality of life Environment Social Governance Net-zero targets validated by the 85% employee engagement Diverse board with broad range Science Based Targets initiative score is competitive with of skills, experience, and World’s Best Workplaces* perspectives
Slide 21: Agilent offers the broadest set of sustainable solutions to drive growth
Agilent offers the broadest set of sustainable solutions to drive growth Agilent Certified Pre-owned Instruments Hydrolnert source replaces InfinityLab Poroshell Energy management and A large and growing helium with hydrogen, a 120 LC columns designed to Most comprehensive trade-in asset utilization
Slide 22: Our One Agilent Culture: An enduring competitive differentiator
Our One Agilent Culture: An enduring competitive differentiator We are as intentional about culture as we are about strategy and innovation Instrument Business Outlook Company of the Year 22 2024 J.P. Morgan Healthcare Conference
Slide 23: Q1'24 and FY'24 guidance
Q1’24 and FY’24 guidance Based on forecasted currency exchange rates Q1’24 Guidance (1) FY’24 Guidance (1) Low End High End Low End High End Net Revenue ($M) $1,555 $1,605 Net Revenue ($M) $6,710 $6,810 Y/Y Core Revenue Growth -11.3% -8.5% Y/Y Core Revenue Growth -0.5% 1.0% Assumes -0.1% M&A Assumes
Slide 24: In summary
In summary Agilent: o participates in attractive markets with fundamental long-term growth potential o is a diversified business with multiple growth drivers o is driven by a team focused on our customers with a proven track record of success and unmatched execution capabilities We will continue to:
Slide 25: 2024 J.P. Morgan Healthcare Conference
25 2024 J.P. Morgan Healthcare Conference
Slide 26: Reconciliations of Revenue Excluding Acquisitions and Divestitures and Currency (Core)
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING ACQUISITIONS AND DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended Year Ended October 31, October 31, October 31, October 31
Slide 27: Non-GAAP Net Income and Diluted EPS Reconciliations
AGILENT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS (In millions, except per share amounts) (Unaudited) FY 2023 FY 2022 FY 2021 FY 2020 FY 2019 FY 2018 FY 2017 FY 2016 FY 2015 Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS Net i
Slide 28: Reconciliation of Adjusted Non-GAAP Income from Operations and Operating Margins
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating Operating Operating Operating Operating Operating Operating Operating Operating FY 2023 Margin % FY 2022 Margin % FY 2021 Margin % FY 20
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