Danaher Corporation · NYSE:DHR
Danaher — Q3 2020 Earnings Presentation
17 slides from Danaher's earnings presentation, Oct 22, 2020
Slide 1: Third Quarter 2020 Earnings Release
DANAHER CORPORATION Third Quarter 2020 Earnings Release October 22, 2020
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding Danaher’s anticipated financial performance for the fourth quarter 2020 or any other future period, and any other statements regarding events or developments that we antici
Slide 3: Third Quarter 2020 Performance Summary
Third Quarter 2020 Performance Summary ADJUSTED DILUTED NET EARNINGS REVENUE PER COMMON SHARE +34.5% +62.0% Core including Cytiva +14.0% FX +1.0% ($ millions) Throughout this presentation, with respect to revenue performance, for the definitions of “Acquisitions,” “Core,” "Core including Cytiva," an
Slide 4: Third Quarter 2020 Performance Summary: Margins
Third Quarter 2020 Performance Summary OPERATING PROFIT MARGIN GROSS MARGINS Q3 2020 – 54.8% +80 BPS -100 BPS Q3 2019 – 55.8% Core +310 bps Acquisitions +135 bps Other -365 bps SG&A (as a % of Revenue) Q3 2020 – 30.5% Q3 2019 – 31.6% -110 BPS R&D (as a % of Revenue) Q3 2020 – 5.8% Q3 2019 – 6.5% -70
Slide 5: Third Quarter 2020 Performance Summary: Free Cash Flow
Third Quarter 2020 Performance Summary FREE CASH FLOW PERFORMANCE ($ millions) Q3 YTD +110.0% +58.5% For the definition of Free Cash Flow, please refer to the accompanying information required by Regulation G, located at the end of this presentation and on the "Investors" section of Danaher's websit
Slide 6: Third Quarter 2020: Life Sciences
Third Quarter 2020: Life Sciences OPERATING PROFIT MARGIN +72.5% -290 BPS Core including Cytiva +18.5% Core +300 bps FX +1.0% Acquisitions +200 bps Other -790 bps ($ millions) 6
Slide 7: Third Quarter 2020: Diagnostics
Third Quarter 2020: Diagnostics OPERATING PROFIT MARGIN +18.0% +500 BPS Core +17.5% Core +500 bps Acquisitions —% Acquisitions — bps FX +0.5% Other — bps ($ millions) 7
Slide 8: Third Quarter 2020: Environmental & Applied Solutions
Third Quarter 2020: Environmental & Applied Solutions OPERATING PROFIT MARGIN -1.0% -80 bps Core -1.0% Core +75 bps Acquisitions —% Acquisitions -25 bps FX —% Other -130 bps ($ millions) 8
Slide 9: Guidance
GUIDANCE 9
Slide 10: Q&A
Q&A 10
Slide 11: DANAHER
DANAHER
Slide 12: Reconciliation of GAAP to Non-GAAP Financial Measures
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES 1 Adjusted Diluted Net Earnings Per Common Share from Continuing Operations Three-Month Period Ended October 2, 2020 September 27, 2019 Diluted Net Earnings Per Common Share from Continuing Operations (GAAP) $ 1.16 $ 0.84 A Pr
Slide 13: Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (continued) Notes to Reconciliation of GAAP to Non-GAAP Financial Measures A Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below ar
Slide 14: Statement Regarding Non-GAAP Measures
Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes t
Slide 15: Statement Regarding Non-GAAP Measures (core sales and FCF)
• With respect to core sales from continuing operations and core sales from continuing operations including Cytiva, (1) we exclude the impact of currency translation because it is not under management’s control, is subject to volatility and can obscure underlying business trends, and (2) we exclude
Slide 16: Reconciliation of Operating Cash Flows to Free Cash Flow
DANAHER CORPORATION Reconciliation of Operating Cash Flows from Continuing Operations (GAAP) to Free Cash Flow from Continuing Operations (Non-GAAP) Three-Month Period Ended Three-Month Period Ended Three-Month Period Ended Nine-Month Period Ended April 3, March 29, Year-over- July 3, June 28, Year-
Slide 17: Year-Over-Year Core Operating Margin Changes
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES Year-Over-Year Core Operating Margin Changes From Continuing Operations Segments Environmental & Total Company Life Sciences Diagnostics Applied Solutions Three-Month Period Ended September 27, 2019 Operating Profit Margins Fr