Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q2 2019 Earnings Presentation
30 slides from Becton, Dickinson And's earnings presentation, May 9, 2019
Slide 1: Second Quarter Results Fiscal Year 2019
Second Quarter Results Fiscal Year 2019 May 9, 2019 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 2: Forward-Looking Statements; 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: Q2 FY 2019 Business highlights
Q2 FY 2019 Business highlights Q2 performance broadly in-line with our expectations • Solid underlying revenue performance as the core business remains strong • Q2 EPS in line with previously communicated range • Bard cost and revenue synergy capture activities are on-track • Confidence in accelerat
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: Q2 FY 2019 Financial highlights
Q2 FY 2019 Financial highlights Revenue growth: Margin Expansion: Capital deployment: Solid Q2 revenues with Q2 margins broadly • $500M debt pay down growth impacted by a in-line with our in the second quarter tough flu compare and expectations • 3.8x gross leverage timing at March 31st Second Quart
Slide 8: Q2 FY 2019 Medical segment update
Q2 FY 2019 Medical segment update Second Quarter Year-to-Date Revenues Comparable Comparable % $ FXN % $ % Growth FXN % Growth Growth(1) Growth(1) Medical segment $2,180 +0.4% +3.8% $4,316 +7.2% +4.5% Medication Delivery Solutions 929 (3.0%) +1.3% 1,887 +11.0% +2.1% Medication Management 615 +5.9% +
Slide 9: Q2 FY 2019 Life Sciences segment update
Q2 FY 2019 Life Sciences segment update Second Quarter Year-to-Date Revenues Comparable Comparable % $ FXN % $ % Growth FXN % Growth Growth(1) Growth(1) Life Sciences segment $1,052 (4.2%) +2.7% $2,108 (1.6%) +3.7% Diagnostic Systems 389 (5.1%) (1.6%) 771 (2.5%) +0.5% Preanalytical Systems 366 (4.1%
Slide 10: Q2 FY 2019 Interventional segment update
Q2 FY 2019 Interventional segment update Second Quarter Year-to-Date Revenues Comparable Comparable $ % Growth FXN % $ % Growth FXN % Growth(1) Growth(1) Interventional segment $963 +1.1% +3.5% $1,932 +70.2% +4.6% Peripheral Intervention 342 +1.1% +3.8% 679 +97.3% +2.2% Surgery 345 (1.5%) +1.2% 693
Slide 11: Q2 FY 2019 Geographic revenue highlights
Q2 FY 2019 Geographic revenue highlights Second Quarter Year-to-Date Revenues Comparable Comparable $ % Growth FXN % $ % Growth FXN % Growth(1) Growth(1) United States $2,341 +0.7% +2.2% $4,728 +18.7% +4.1% International $1,854 (2.3%) +4.9% $3,628 +9.2% +4.5% Developed Markets 3,558 (0.9%) +2.4% 7,0
Slide 12: Q2 FY 2019 adjusted income statement
Q2 FY 2019 adjusted income statement As adjusted(1) Q2 FY 2019 % Growth % FXN Growth Q2 FY 2018 Revenues $4,195 (0.6%) 2.1% $4,222 Comparable % FXN Growth(2) 3.4% Gross profit 2,321 (2.1%) 2.0% 2,372 % of revenues 55.3% 56.2% SSG&A 1,085 (2.9%) (5.5%) 1,055 % of revenues 25.9% 25.0% R&D 245 5.5% 4.8
Slide 13: Q2 FY 2019 adjusted gross and operating margins
Q2 FY 2019 adjusted gross and operating margins Adjusted Gross margin Adjusted Operating margin Multi-year Operating margin expansion(1) • Expect ~800 bps operating margin expansion from FY 2014 to FY 2019 (1) Underlying margin expansion excludes currency and pension impacts for all periods. 13 © 20
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
Update to guidance FY 2019 revenue guidance Comparable May February Revenues FXN % Guidance Guidance Growth Guidance(1) BDX 5.0% to 6.0% 5.0% to 6.0% Medical 5.0% to 6.0% 5.0% to 6.0% Life Sciences 4.0% to 5.0% 4.0% to 5.0% Interventional 4.5% to 5.5% 6.0% to 7.0% • Reaffirm total company revenue gu
Slide 16: FY 2019 adjusted earnings guidance
FY 2019 adjusted earnings guidance (1) May Guidance: ~12% FXN Growth 6 to 7% Growth Prior Guidance: 13 to 14% FXN Growth May updates for DCB’s and incremental FX $11.65 to Resins and other raw $11.75 materials (~2%) Flu Impact (~1%) $11.01 Tariffs (~1%) (~$400M) Net Income Impact from Includes ~$150
Slide 17: FY 2019 guidance
Update to guidance FY 2019 guidance As adjusted May Guidance February Guidance BD Comparable Revenues FXN % Growth(1) 5.0% to 6.0% 5.0% to 6.0% Revenue – FX Impact (~2.5%) (~2.0%) BD Reported Revenues 8% to 9% 8.5% to 9.5% Gross margin 56% to 57% 56.5% to 57.5% SSG&A (% of sales) 24.5% to 25.5% 24.5
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(1) chloride and lactated ringers • BD Phoenix™ CPO Detect (US) ®
Slide 20: Key takeaways
Key takeaways Q2 performance broadly in-line with our expectations • Solid revenue and EPS performance • Our core business remains strong • Bard cost and revenue synergy capture is on-track • BD continues to deliver even more impactful, comprehensive solutions for our customers and their patients ar
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 Q2 Update Q2 Update BD Libertas™ Wearable Injector
Slide 23: Q2 FY 2019 & Q2 FY 2018 Adjustment Reconciliations
Q2 FY 2019 & Q2 FY 2018 Adjustment Reconciliations Three Months Ended March 31, 2019 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 Restr
Slide 24: YTD FY 2019 & YTD FY 2018 Adjustment Reconciliations
YTD FY 2019 & YTD FY 2018 Adjustment Reconciliations Six Months Ended March 31, 2019 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 Restr
Slide 25: Q2 FY 2019 Reconciliation of Reported to Adjusted Diluted EPS
Q2 FY 2019 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: YTD FY 2019 Reconciliation of Reported to Adjusted Diluted EPS
YTD FY 2019 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 26 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 27: FY 2018 & FY2017 Reconciliation of Reported to Adjusted Diluted EPS
FY 2018 & FY2017 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 27 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dickinson and Company.
Slide 28: FY 2019 Reconciliation – FX Impact Emerging, Developed Markets & China
FY 2019 Reconciliation – FX Impact Emerging, Developed Markets & China G A B C=A+B D E F Divestiture H=D+E+F+G I=(A-D)/D J K=(C-H-J)/H BD Divestiture BD Intercompany and Other Reported Adjustments Comparable Reported Bard Q1 (b) Adjustment Adjustments Comparable % Rptd FX Impact FXN % 2019 (a) 2019
Slide 29: FY 2019 Revenue Outlook Reconciliation
FY 2019 Revenue Outlook Reconciliation 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 8.0% to 9.0% ~2.5% 10.5% to 11.5% Comparable Revenue Growth BD Including Bard FY2018 FY2019 Outlo
Slide 30: 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 $ 11.65 to 11.75 $ 11.01 6.0% to 7.0% Estimated FX Impact ~5.5% Adjusted FXN Growth ~12.0% 30 © 2019 BD. BD and the BD Logo are trademarks of Becton, Dicki
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