Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q1 2019 Earnings Presentation
28 slides from Becton, Dickinson And's earnings presentation, Feb 5, 2019
Slide 1: First Quarter Results Fiscal Year 2019
First Quarter Results Fiscal Year 2019 February 5th, 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: Q1 FY 2019 Business highlights
Q1 FY 2019 Business highlights Strong BD + Bard performance one-year post close is evidence that we are successfully executing our growth-based strategy • Revenue performance better than expectations with mid-single digit growth across all three segments • Strong margin expansion driving operating l
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: Q1 FY 2019 Financial highlights
Q1 FY 2019 Financial highlights Revenue growth: Margin Expansion: Capital deployment: Q1 revenues driven by Q1 gross margins of • $400M debt pay down mid-single digit 56.3% and operating in the first quarter performance across margin expansion of • 3.8x gross leverage the segments +170 bps FXN at De
Slide 8: Q1 FY 2019 Medical segment update
Q1 FY 2019 Medical segment update First Quarter Revenues Comparable $ % Growth FXN % Growth(1) Medical segment $2,135 +15.3% +5.2% Medication Delivery Solutions 958 +29.1% +2.9% Medication Management Solutions 624 +6.2% +6.7% Diabetes Care 274 (1.3%) +0.6% Pharmaceutical Systems 280 +14.0% +15.7% (1
Slide 9: Q1 FY 2019 Life Sciences segment update
Q1 FY 2019 Life Sciences segment update First Quarter Revenues Comparable FXN $ % Growth % Growth(1) Life Sciences segment $1,056 +1.0% +4.7% Diagnostic Systems 382 +0.2% +2.7% Preanalytical Systems 393 +4.7% +7.6% Biosciences 281 (2.8%) +3.6% (1) Reflects comparable revenue growth on a currency neu
Slide 10: Q1 FY 2019 Interventional segment update
Q1 FY 2019 Interventional segment update First Quarter Revenues Comparable FXN $ % Growth % Growth(1) Interventional segment $970 NM +5.7% Peripheral Intervention 337 NM +0.6% Surgery 348 NM +10.0% Urology & Critical Care 285 NM +7.3% (1) Reflects comparable revenue growth on a currency neutral basi
Slide 11: Q1 FY 2019 Geographic revenue highlights
Q1 FY 2019 Geographic revenue highlights First Quarter Revenues Comparable $ % Growth FXN % Growth(1) United States $2,387 +44.1% +6.0% International $1,773 +24.6% +4.1% Developed Markets 3,528 +37.1% +4.7% Emerging Markets 633 +24.7% +7.8% China 275 +52.2% +13.3% (1) Reflects comparable revenue gro
Slide 12: Q1 FY 2019 adjusted income statement
Q1 FY 2019 adjusted income statement As adjusted(1) Q1 FY 2019 % Growth % FXN Growth Q1 FY 2018 Revenues $4,160 35.1% 37.1% $3,080 Comparable % FXN Growth(2) 5.2% Gross profit 2,344 38.5% 42.8% 1,692 % of revenues 56.3% 54.9% SSG&A 1,071 (39.0%) (41.1%) 771 % of revenues 25.7% 25.0% R&D 255 (33.3%)
Slide 13: Q1 FY 2019 adjusted gross and operating margins
Q1 FY 2019 adjusted gross and operating margins 2.3% 56.3% Adjusted Gross 54.9% (0.9%) margin Q1 2018 Performance Currency Q1 2019 1.7% Adjusted 23.7% 24.5% Operating (0.9%) margin Q1 2018 Performance Currency Q1 2019 +200 bps +210 bps +100 to +180 bps Multi-year +100 bps 150 bps Operating +50 bps m
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 FXN FY 2019 % Growth Guidance(1) Guidance BDX 5.0% to 6.0% Medical 5.0% to 6.0% Life Sciences 4.0% to 5.0% Interventional 6.0% to 7.0% • No change to revenue guidance from November (1) Reflects comparable revenue growth on a currency neutral basis, adjust
Slide 16: FY 2019 adjusted EPS guidance
FY 2019 adjusted EPS guidance (1) 13 to 14% FXN Growth ~10% Growth ~3% 16 to 17% $12.05 to (~4%) $12.15 (~2%) Resins and other raw materials (~2%) (~3.5%) $11.01 Flu Impact (~1%) Tariffs (~1%) FY18 FY19 Favorable FY19 Divestiture Estimated FY19 Adjusted Underlying Year-over- Headwinds Impact FX Adju
Slide 17: FY 2019 guidance
FY 2019 guidance As adjusted February Guidance November Guidance BD Comparable Revenues FXN % Growth(1) 5.0% to 6.0% 5.0% to 6.0% Revenue – FX Impact (~2.0%) (~2.0%) BD Reported Revenues 8.5.% to 9.5% 8.5% to 9.5% Gross margin 56.5% to 57.5% 56.5% to 57.5% SSG&A (% of sales) 24.5% to 25.5% 24.5% to
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 • LUTONIX™ 014 Drug Coated (US) Balloon for Below-the-knee • IV Solutions – 0.45% sodium arterial treatment chloride and lactated ringers • BD Phoenix™ CPO Detect (US) ® •
Slide 20: Key takeaways
Key takeaways Continued strong momentum one-year post close • Good revenue growth driven by breadth of portfolio • Strong operational performance and cost synergy capture driving sustained margin expansion • Starting to achieve measurable Bard revenue synergies • New product pipeline for FY 2019 rem
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 Developing new products and Providing access to affordable solutions that improve medical technologies to resource outcomes, reduce system costs limited populations around the and promote healthcare safety globe Q1 Update Q1 Update BD completed an enterprise leve
Slide 23: Q1 FY 2019 & Q1 FY 2018 Adjustment Reconciliations
Q1 FY 2019 & Q1 FY 2018 Adjustment Reconciliations Three Months Ended December 31, 2018 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 Re
Slide 24: Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS
Q1 FY 2019 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Three Months Ended December 31, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2018 2017 Growth Translation Growth Growth % Growth % Reported Diluted Earnings (Loss) per Share $ 2.05 $ (0.76) $
Slide 25: FY 2018 & FY2017 Reconciliation of Reported Diluted EPS to Adjusted
FY 2018 & FY2017 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: FY 2019 Reconciliation – FX Impact Emerging, Developed Markets & China
FY 2019 Reconciliation – FX Impact Emerging, Developed Markets & China A B C=A+B D E F G H=D+E+F+G I=(A-D)/D J K=(C-H-J)/H BD Divestiture BD Intercompany Divestiture Reported Adjustments Comparable Reported (b) Bard Q1 (c) Adjustment Adjustments Comparable % Rptd FX Impact FXN % 2018 (a) 2018 2017 2
Slide 27: FY 2019 Revenue Outlook Reconciliation
FY 2019 Revenue Outlook Reconciliation BD Including Bard 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 8.5% to 9.5% ~2.0 10.5% to 11.5% Comparable Revenue Growth BD Including Bard FY
Slide 28: 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 $ 12.05 to 12.15 $ 11.01 ~10% Estimated FX Impact ~3.5% Adjusted FXN Growth 13% - 14% 28 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson
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