Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — 35th Annual J.P. Morgan Healthcare Conference (January 2017)
21 slides from Agilent Technologies's conference presentation, Jan 10, 2017
Slide 1: Agilent Technologies at 35th Annual J.P. Morgan Healthcare Conference
S AGILENT TECHNOLOGIES 35th Annual J.P. Morgan Healthcare Conference January 10, 2017 Mike McMullen, President and Chief Executive Officer Analyst & Investor Day 2016 0
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, revenues, operating profit and operating margin, growth opportunities, customer service and innovation plans, new product introduction
Slide 3: Agilent - Transforming the Company
Agilent - Transforming the Company One team. Driving results. Right businesses. Launched a customer-centered One Agilent cultural transformation Launched company simplification and Agile Agilent cost reduction initiatives Building exited unattractive businesses, New Portfolio investing in attractive
Slide 4: Agilent Transformation: Measures of Success
Agilent Transformation Measures of Success Expand Outgrow operating the Market Outgrow the market margins Balanced capital Expand operating margins allocation Balanced approach to capital allocation 35th Annual JPM Healthcare 3
Slide 5: Key FY16 Results
Key FY16 Results Revenue Growth, Margin Expansion, Balanced Capital Allocation • Revenue Growth above the market: up 5.9%(1)(3) on core basis • Expanded Operating Margin: up 110 bps to 20.7%(2)(3) • Adjusted EPS(3) of $1.98, up 14% • Capital Allocation: • Cash Dividends: $150M • Share Repurchases: $
Slide 6: Transformational Results: Outgrowing the Market, Expanding Margins
Transformational Results Outgrowing the Market, Expanding Margins Significant acceleration of core Operating Margin expansion revenue growth(1) since 2014 of 280 bps since 2014 (2) 280 7% 6.4% 20.7% bps Completely 5.9% offset $40M 6% (2) split dis- 19.6% 5% 4.7% 4.9% synergies in 3.8% FY15 4% 3% 2%
Slide 7: Balanced Capital Allocation – FY16 Uses of Cash
Transformational Results Balanced Capital Allocation – FY16 Uses of Cash Deployed $480M Returned $585M into Strategic to Shareholders, Investments 89% of Free Cash • $235M Seahorse • $ 80M Lasergen • $ 25M iLab • $140M CapEx Share (including facility Repurchases expansions) $434M Dividends $150M 35t
Slide 8: Agilent Growth Strategy
Agilent Growth Strategy Grow Share in Attractive Markets Chemical & Academia & Clinical & The Environment Energy Food Pharma Government Diagnostics $49B (1) Opportunity $14B(1) $15B(1) $10B(1) $10B(1) Strategically Target Growth Markets Innovation-driven growth Emerging market expansion Complementar
Slide 9: Strategically Target Growth Markets
Strategically Target Growth Markets Opportunities in higher growth, lower share segments Market LT market Market End-markets(1) size growth position SUSTAINING Chemical & $4.1B 1-3% Energy #1 Environment $5.3B 2-4% & Forensics Food $4.4B 4-6% #2 GROWING Pharma $15.0B 4-6% #2 Academia & $10.6B 1-3% #
Slide 10: Growth through Innovation
Growth through Innovation Allocating Investment to Highest Growth Opportunities Strengthening Capturing new life sciences & market leadership diagnostics growth opportunities Agilent Intuvo 9000 GC Genomics and Diagnostics 26% Agilent OneSeq Dako Omnis Target Enrichment Advanced Staining $324M/yr So
Slide 11: Growth through Capital Investment
Growth through Capital Investment Expansion of Nucleic Acid Solutions Business • In August, announced building of new manufacturing facility in Colorado • Investing $120M over three years. • Targeting fast growing therapeutic oligo market, expanding capacity in light of very strong demand • Will ena
Slide 12: Growth through Emerging Market Expansion
Growth through Emerging Market Expansion Capture share in growing China and India markets Agilent FY16 Key Strategies Revenue Profile China: Capture 13th Five Year Plan opportunities Emerging Leverage leading position in instrumentation & Developing Economies(1) to grow services and consumables 30%
Slide 13: Growth through M&A
Growth through M&A Primary focus to expand offerings around core, add new capabilities Primary Focus Periodic Bolt-on acquisitions (1) Opportunistic Technology Larger acquisitions Expand offerings acquisitions with earnings and around core to complete revenue growth solutions potential offering(1) (
Slide 14: FY17 Guidance
FY17 Guidance(1) Revenue Growth, Margin Expansion, Balanced Capital Allocation • Revenue Growth of 4.3%(2) on core basis • Growth Assumptions by End Market: • +6 to 7%: Pharma, Dx&Clinical, Food • +2 to 3%: A&G, Environmental • +1%: Chemical & Energy • +10% growth in China • Expand Operating Margin
Slide 15: Today's Key Points
Agilent at 35th Annual J.P. Morgan Healthcare Today’s Key Points Agilent Transforming and Delivering Growth Strategies are Central to our Plan Optimal Combination: • Above Industry Organic Growth • Margin Expansion Opportunity • Balance Sheet Strength and Flexibility Agilent foundation established,
Slide 16: Reconciliation of Adjusted Non-GAAP Income From Operations
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND INCOME FROM OPERATIONS TO REPORTABLE SEGMENTS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating FY 2016 Margin % Revenue: Life Sciences and Applied Markets Group (LSAG) $ 2,073 Agile
Slide 17: Reconciliations of Adjusted Non-GAAP Income From Operations
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating Operating Operating FY 2016 Margin % FY 2015 Margin % FY 2014 Margin % Agilent GAAP Revenue $ 4,202 $ 4,038 $ 4,048 Income from operatio
Slide 18: Reconciliations of Revenue by Segment
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE BY SEGMENT EXCLUDING THE NMR BUSINESS, ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Life Sciences and Life Sciences and Applied Markets Group Applied Markets Group Diagnostics and Genomics Gro
Slide 19: Reconciliations of Revenue Excluding the NMR Business
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING THE NMR BUSINESS, ACQUISITIONS, DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Year Ended Year Ended Year Ended Year Ended Year Ended October 31, October 31, October 31, October 31, October 31, 2016
Slide 20: Non-GAAP Income from Continuing Operations and Diluted EPS Reconciliations
Slide 21: Capital Return
AGILENT TECHNOLOGIES, INC. CAPITAL RETURN (in millions) (Unaudited) PRELIMINARY Year Ended October 31, 2016 Payment of dividends > 150 ‘Treasury stock repurchases 434 $ 584 Net cash provided by operating activities $ 793 Investments in property, plant and equipment (138) $ 654 Capital return 80% Man
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