Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Q3 2024 Earnings Presentation
23 slides from Boston Scientific's earnings presentation, Oct 23, 2024
Slide 1: Q3 2024 Highlights
Q3 2024 Highlights October 23, 2024 1 Q3 2024 Financial & Operational Highlights | October 23, 2024
Slide 2: Safe Harbor for Forward-Looking Statements and Use of Document
Safe Harbor for Forward-Looking Statements and Use of Document Safe Harbor for forward-looking statements: This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward- looking st
Slide 3: Q3 2024 Highlights
Q3 2024 Highlights Financial Highlights Operational Highlights • Net sales growth: • Received U.S. Food and Drug Administration (FDA) approval for the navigation-enabled FARAWAVE™ Nav Ablation Catheter for the • +19.4% reported, +19.5% operational*, +18.2% treatment of paroxysmal atrial fibrillation
Slide 4: Reported Net Sales by Segment and Business
Reported Net Sales by Segment and Business Q3 2024 Reported Net Sales: $4.209B Net Sales by Business; Segment Percentage of Total Net Sales Cardiology MedSurg NM $268M 35% Urology $532M $527M EP $561M CRM Cardiology Endo $2.129B $380M Watchman $678M $661M ICTx PI $602M Cardiovascular 65% 4 Q3 2024 F
Slide 5: MedSurg Performance Summary
MedSurg Performance Summary Measure Q3 2024 Q3 2023 Change Y/Y Reported Net Sales $1,479M $1,341M +10.3% Adjusted Operating Margin* 34.6% 34.2% +40 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency exchange rates to exclude
Slide 6: Cardiovascular Performance Summary
Cardiovascular Performance Summary Measure Q3 2024 Q3 2023 Change Y/Y Reported Net Sales $2,731M $2,185M +25.0% Adjusted Operating Margin* 31.1% 26.7% +440 bps * Represents operating income as a percentage of operational net sales, both based on internally-derived standard currency exchange rates to
Slide 7: Living our values: ESG update
Living our values: ESG update Advancing care by Empowering people Shaping a healthier planet ensuring product quality by offering ERGs through gold standards Boston Scientific is committed to quality Lia moved from Miami to Minnesota and Boston Scientific's Penang Global patient care. Every year, em
Slide 8: Q3 2024 Net Sales vs. Q3 2023
Q3 2024 Net Sales vs. Q3 2023 Q3:24 Reported Organic* Growth Net Sales vs Q3:23 (in millions) Endoscopy $678 7% Urology $532 10% Neuromodulation $268 3% MedSurg $1,479 8% Interventional Cardiology Therapies $661 14% Watchman $380 18% Cardiac Rhythm Management $561 2% Electrophysiology $527 177% Card
Slide 9: Income Statement Information
Income Statement Information Non-GAAP Reconciliation Three Months Ended September 30, 2024 (unaudited) Restructuring Acquisition/ and Divestiture- Restructuring- Related Net Related Net Investment EU MDR Deferred Tax GAAP Amortization Charges Charges Portfolio Net Implementation Expenses Adjusted* i
Slide 10: Working Capital & Cash Flow Metrics
Working Capital & Cash Flow Metrics Days Sales Outstanding (DSO) Free Cash Flow* Sep Jun Mar Dec Sep Q3 Q3 2024 2024 2024 2023 2023 2024 2023 55 53 54 55 55 $822M $582M Days Inventory on Hand (DIOH) Capital Expenditures Sep Jun Mar Dec Sep Q3 Q3 2024 2024 2024 2023 2023 2024 2023 193 187 193 199 201
Slide 11: Use of Non-GAAP Measures
Use of Non-GAAP Measures To supplement Boston Scientific’s consolidated financial statements presented on a GAAP basis, the Company discloses certain non- GAAP financial measures. These measures are not in accordance with generally accepted accounting principles in the United States. A reconciliatio
Slide 12: Appendix A Net Sales Detail
Appendix A Net Sales Detail 12 Q3 2024 Financial & Operational Highlights | October 23, 2024
Slide 13: Appendix A - Net Sales Detail - MedSurg
Appendix A - Net Sales Detail - MedSurg Three Months Ended September 30, 2024 and 2023 Year-over-Year Change Impact of Foreign Q3 Q3 Currency (in millions) 2024 2023 Reported Basis Fluctuations Operational Basis MEDSURG SEGMENT: ENDOSCOPY UNITED STATES $ 417 $ 382 9.1 % — % 9.1 % INTERNATIONAL 261 2
Slide 14: Appendix A - Net Sales Detail - Cardiovascular
Appendix A - Net Sales Detail - Cardiovascular Three Months Ended September 30, 2024 and 2023 Year-over-Year Change Impact of Foreign Q3 Q3 Currency (in millions) 2024 2023 Reported Basis Fluctuations Operational Basis CARDIOVASCULAR SEGMENT: ICTx UNITED STATES $ 212 $ 182 16.2 % — % 16.2 % INTERNAT
Slide 15: Appendix B Additional Information - Statement of Operations
Appendix B Additional Information - Statement of Operations 15 Q3 2024 Financial & Operational Highlights | October 23, 2024
Slide 16: Appendix B - Statement of Operations Profitability Margins
Appendix B - Statement of Operations Profitability Margins Three Months Ended Adjusted Gross Margin 9/30/2024 9/30/2023 Basis Points Change Gross Margin, as reported 68.8 % 68.8 % — Non-GAAP adjustments 1.6 % 1.4 % Gross Margin, adjusted 70.4 % 70.2 % 20 Three Months Ended Adjusted Operating Margin
Slide 17: Appendix C Additional Non-GAAP Reconciliations
Appendix C Additional Non-GAAP Reconciliations 17 Q3 2024 Financial & Operational Highlights | October 23, 2024
Slide 18: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Impact of Impact of Foreign Recent Q3 Q3 As Reported Currency Operational Acquisitions/ Organic (in millions) 2024 2023 Basis Fluctuations Basis Divestitures Basis ENDOSCOPY $ 678 $ 629 7.8 % 0.1 % 7.9 % (0.5) % 7.4 % UROLOGY 532 483 10.3 % 0.1 % 10.4
Slide 19: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Free Cash Flow (in millions) 9/30/2024 Cash provided by (used for) operating activities $ 1,002 Purchases of property, plant and equipment and internal use software (180) Free Cash Flow $ 822 Q3 2024 free cash flow includes $208 mil
Slide 20: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations 12 Months Ended Reconciliation of Debt to Adjusted EBITDA (in millions) Q4 2023 Q1 2024 Q2 2024 Q3 2024 9/30/2024 Net income (loss) $ 504 $ 493 $ 322 $ 468 $ 1,787 Income tax (benefit) expense 1 115 98 200 415 Interest expense 65 69 77 79 289 Interest
Slide 21: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Estimated Adjusted Below-the-Line Expenses (in millions) FY 2024 Adjusted Below-the-Line Expenses (in millions) 9/30/2024 Below-the-line expenses, as reported $ ~310 Below-the-line expenses, as reported $ (65) Non-GAAP adjustments ~
Slide 22: C - Additional Non-GAAP Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Q4 2024 Estimate Net Sales Guidance (Low) (High) FY 2024 Estimate Reported growth 16.5 % 18.5 % 16.5 % Impact of foreign currency fluctuations (0.5) % (0.5) % ~0.5% Operational growth 16.0 % 18.0 % 17.0 % Impact of acquisitions/divestitures (2.0) % (2
Slide 23: BSX: Acronym Reference Guide
BSX: Acronym Reference Guide 23 Q3 2024 Financial & Operational Highlights | October 23, 2024