Agilent Technologies, Inc. · NYSE:A

Agilent Technologies — 33rd Annual J.P. Morgan Healthcare Conference (January 2015)

22 slides from Agilent Technologies's conference presentation, Jan 10, 2015

  1. Slide 1: Agilent Technologies - 33rd Annual J.P. Morgan Healthcare Conference

    Agilent Technologies 33rd Annual J.P. Morgan Healthcare Conference Mike McMullen – President and COO Page 1

  2. 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, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earning

  3. Slide 3: Premier Laboratory Partner for a Better World

    Premier Laboratory Partner for a Better World Instrumentation and Software Analytical Consumables Solutions for Clinical for Analytical Laboratories and Services and Research Laboratories Life Sciences & Applied Agilent CrossLab Group Diagnostics & Genomics Markets Group (LSAG) (ACG) Group (DGG) FY1

  4. Slide 4: Agilent "Profitable Growth" Overview

    Agilent “Profitable Growth” Overview Leveraging scale and leading technology platforms across end markets • Global leader in Life Sciences, Diagnostics, FY14 Financial Metrics and Headcount and Applied (Chemical Analysis) markets • Orders: $4.2B, + 5% y/y (+4 core)(1) • Attractive recurring revenue

  5. Slide 5: A $44B Market Growing 4%-6%

    A $44B Market Growing 4%- 6%(1) Targeting to grow at the high end of the market Leader in the Analytical Laboratory(1) Agilent Revenue by End Market (2) 87% of Agilent revenue(2) $34B market growing 3%-5% Chemical Pharma & • #1 Applied markets(3) (3%-7%) & Energy Biotech 23% 25% • #2 Pharma & Biotec

  6. Slide 6: Growth through Leadership in the Analytical Lab

    Growth through Leadership in the Analytical Lab Portfolio Strength into Enterprise Leadership $34B Market Growing 3%-5%(1) INSTRUMENT PLATFORMS LC 87% of ICP-OES Agilent Revenue(2) ATOMIC ABSORPTION SERVICES CONSUMABLES LCMS GCMS GC SOFTWARE PLATFORM Agilent Reported Rev. % of Agilent Key Agilent Ma

  7. Slide 7: Growth by Leveraging Analytical Strength into Dx & Clinical

    Growth by Leveraging Analytical Strength into Dx & Clinical Focused on fast growing genomics and cancer applications $10B Market Growing 8%-10%(1) Analytical Lab 13% of Agilent Revenue(2) Routine Clinical & Dx INSTRUMENT PLATFORMS LC ICP-OES Full solutions for ATOMIC advanced diagnostics ABSORPTION

  8. Slide 8: Profitable Growth: Aggressively Improving Operating Margins to 22% by FY17

    Profitable Growth: Aggressively Improving Operating Margins to 22% by FY17(1) Improving margins 300 basis points over FY14 Drive annual operating margin incrementals over 30% on core(2) revenue growth of 5% or more • Leverage current R&D and sales channel Q4’14 TTM Adjusted Operating Margin Comparis

  9. Slide 9: Agilent Profitable Growth Plan Recent Actions

    Agilent Profitable Growth Plan Recent Actions Nov’ 14 –Re-organization – streamlining and aligning to strategy • New business group structure • Consolidated Sales Channel • Central Research Lab – streamlined, Life Sciences/Diagnostics only focus Portfolio Investments • Exit of NMR Hardware Business

  10. Slide 10: Innovation-driven growth by Agilent

    Innovation-driven growth by Agilent Recent new Agilent offerings New in New in New in 2014 2014 2014 7890B-5977A GC-Q/MS 7010 GC-QQQ 7200 GC-Q/TOF 6560 LC-Q/TOF 6495 LC-QQQ 6120VL LC/Q-MS AriaMx Real-Time PCR System New in New in New in 2014 2014 2014 8454 UV/Vis Cary 7000 UMS Cary 630 FTIR 4300 han

  11. Slide 11: Q1'15 and FY15 Guidance and Forward-looking Considerations

    Q1’15 and FY15 Guidance and Forward-looking Considerations Based on September 30, 2014 Exchange Rates FY15 Guidance FY15 FY14 • Revenue: $4.12B - $4.18B; growth at mid-point 4.9% core, 2.5% Guidance at Actual (1) reported (1) mid-point • EPS: $1.68 - $1.78, assumed diluted share count 340M (1) Net R

  12. Slide 12: Agilent Strategy to Win

    Agilent Strategy to Win Creating shareholder value Grow organically at the high end of the market • Focus on sustaining share growth within the core Analytical Lab • Continue to bring innovative new offerings to the market • Expand lab-wide services & consumables with a differentiated customer exper

  13. Slide 13: Agilent Technologies - 33rd Annual J.P. Morgan Healthcare Conference

    Agilent Technologies 33rd Annual J.P. Morgan Healthcare Conference Mike McMullen – President and COO Page 13

  14. Slide 14: Appendix & Reconciliations

    Agilent Technologies 33rd Annual J.P. Morgan Healthcare Conference Appendix & Reconciliations Page 14

  15. Slide 15: Agilent at a Glance

    Agilent at a Glance REVENUE IN FY14 $4.0 billion (73% generated outside the U.S.) EMPLOYEES 12,000 CEO, AGILENT (thru March 17, 2015) William P. (Bill) Sullivan PRESIDENT & COO, AGILENT (current) PRESIDENT & CEO, AGILENT (March 18, 2015) Mike McMullen CUSTOMER LOCATIONS 100+ countries MANUFACTURING

  16. Slide 16: FY15 Agilent Capital Allocation

    FY15 Agilent Capital Allocation • Forecast FY15 Operating Cash Flow of $600M • Invest in the Business • FY15 Capital expenditures of $120M • Return $500M in capital to shareholders in FY15 • ~$135M in Dividends • ~$365M in opportunistic Share repurchases • Maintain investment grade rating Page 16

  17. Slide 17: Reconciliations of Revenue Excluding Currency Adjustments (Core)

    AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) PRELIMINARY Year-over-Year Currency GAAP Adjustments (a) Currency-Adjusted Year-over-Year Year-over-Year Revenue Q4'14 Q4'13 % Change Q4'14 Q4'14 Q4'13 % Change Life Sc

  18. Slide 18: Life Sciences, Diagnostics and Applied Markets (LDA)

    AGILENT TECHNOLOGIES, INC. LIFE SCIENCES, DIAGNOSTICS AND APPLIED MARKETS (LDA) (Unaudited) PRELIMINARY (In millions, except margins data) FY 2014 Q1 Q2 Q3 Q4 Total Orders $ 979 $ 1,030 $ 1,017 $ 1,145 $ 4,171 Net revenue $ 1,008 $ 988 $ 1,009 $ 1,043 $ 4,048 Gross margin % 54.1% 52.9% 53.2% 53.8% 5

  19. Slide 19: Reconciliation of ROIC

    AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) PRELIMINARY LDA (New Agilent) Numerator: FY'14 Non-GAAP income from operations $ 763 ROIC calculation:(annualized current quarter segment return)/(average of the five most recent quarter-end balances of Segment Invested Capi

  20. Slide 20: Life Sciences and Applied Markets Group

    AGILENT TECHNOLOGIES, INC. LIFE SCIENCES AND APPLIED MARKETS GROUP (Unaudited) (In millions, except margins data) 2014 Q1 Q2 Q3 Q4 Total Orders $ 489 $ 502 $ 527 $ 620 $ 2,138 Net revenue $ 537 $ 495 $ 507 $ 539 $ 2,078 Gross margin 56.2% 54.4% 55.2% 57.1% 55.8% Income from operations $ 105 $ 71 $ 8

  21. Slide 21: Agilent CrossLab Group

    AGILENT TECHNOLOGIES, INC. AGILENT CROSSLAB GROUP (Unaudited) (In millions, except margins data) 2014 Q1 Q2 Q3 Q4 Total Orders $ 334 $ 354 $ 321 $ 353 $ 1,362 Net revenue $ 314 $ 325 $ 336 $ 332 $ 1,307 Gross margin 48.5% 47.9% 49.1% 48.5% 48.5% Income from operations $ 69 $ 70 $ 84 $ 78 $ 301 Opera

  22. Slide 22: Diagnostics and Genomics Group

    AGILENT TECHNOLOGIES, INC. DIAGNOSTICS AND GENOMICS GROUP (Unaudited) (In millions, except margins data) 2014 Q1 Q2 Q3 Q4 Total Orders $ 156 $ 175 $ 169 $ 171 $ 671 Net revenue $ 157 $ 168 $ 166 $ 172 $ 663 Gross margin 58.3% 57.8% 55.7% 54.0% 56.4% Income from operations $ 19 $ 26 $ 22 $ 26 $ 93 Op

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