Boston Scientific Corporation · NYSE:BSX
Boston Scientific — Q2 2024 Earnings Presentation
23 slides from Boston Scientific's earnings presentation, Jul 24, 2024
Slide 1: Q2 2024 Highlights
Q2 2024 Highlights July 24, 2024 1 Q2 2024 Financial & Operational Highlights | July 24, 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: Q2 2024 Highlights
Q2 2024 Highlights Financial Highlights Operational Highlights • Net sales growth: • Received National Medical Administration (NMPA) approval in China for the FARAPULSE™ Pulsed Field Ablation (PFA) System. • +14.5% reported, +16.1% operational*, +14.7% • Presented the following clinical data at Hear
Slide 4: Reported Net Sales by Segment and Business
Reported Net Sales by Segment and Business Q2 2024 Reported Net Sales: $4.120B Net Sales by Business; Segment Percentage of Total Net Sales Cardiology MedSurg NM $282M 36% Urology $525M $428M EP $576M CRM Cardiology $2.047B $379M Watchman Endo $676M $665M ICTx PI $590M Cardiovascular 64% 4 Q2 2024 F
Slide 5: MedSurg Performance Summary
MedSurg Performance Summary Measure Q2 2024 Q2 2023 Change Y/Y Reported Net Sales $1,483M $1,360M +9.0% Adjusted Operating Margin* 34.6% 34.0% +60 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 Q2 2024 Q2 2023 Change Y/Y Reported Net Sales $2,637M $2,239M +17.8% Adjusted Operating Margin* 28.9% 26.4% +250 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 Shaping a healthier planet Empowering people by Advancing care by bridging through emissions reduction improving clinical trial diversity gaps for Asian-Americans Reducing our carbon footprint is a Boston Scientific has long been committed Boston Scientific is committed
Slide 8: Q2 2024 Net Sales vs. Q2 2023
Q2 2024 Net Sales vs. Q2 2023 Q2:24 Reported Organic* Growth Net Sales vs Q2:23 (in millions) Endoscopy $676 8% Urology $525 9% Neuromodulation $282 4% MedSurg $1,483 8% Interventional Cardiology Therapies $665 9% Watchman $379 20% Cardiac Rhythm Management $576 3% Electrophysiology $428 125% Cardio
Slide 9: Income Statement Information
Income Statement Information Non-GAAP Reconciliation Three Months Ended June 30, 2024 (unaudited) Restructuring Acquisition/ and Intangible Divestiture- Restructuring- Investment Asset Related Net Related Net Portfolio EU MDR Deferred Tax GAAP Amortization Impairment Charges Charges Net Losses Imple
Slide 10: Working Capital & Cash Flow Metrics
Working Capital & Cash Flow Metrics Days Sales Outstanding (DSO) Free Cash Flow* Jun Mar Dec Sep Jun Q2 Q2 2024 2024 2023 2023 2023 2024 2023 53 54 55 55 54 $660M $514M Days Inventory on Hand (DIOH) Capital Expenditures Jun Mar Dec Sep Jun Q2 Q2 2024 2024 2023 2023 2023 2024 2023 187 193 199 201 194
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 Q2 2024 Financial & Operational Highlights | July 24, 2024
Slide 13: Appendix A - Net Sales Detail - MedSurg
Appendix A - Net Sales Detail - MedSurg Three Months Ended June 30, 2024 and 2023 Year-over-Year Change Impact of Foreign Q2 Q2 Currency (in millions) 2024 2023 Reported Basis Fluctuations Operational Basis MEDSURG SEGMENT: ENDOSCOPY UNITED STATES $ 415 $ 384 8.0 % — % 8.0 % INTERNATIONAL 261 246 5.
Slide 14: Appendix A - Net Sales Detail - Cardiovascular
Appendix A - Net Sales Detail - Cardiovascular Three Months Ended June 30, 2024 and 2023 Year-over-Year Change Impact of Foreign Q2 Q2 Currency (in millions) 2024 2023 Reported Basis Fluctuations Operational Basis CARDIOVASCULAR SEGMENT: ICTx UNITED STATES $ 201 $ 189 6.4 % — % 6.4 % INTERNATIONAL 4
Slide 15: Appendix B Additional Information - Statement of Operations
Appendix B Additional Information - Statement of Operations 15 Q2 2024 Financial & Operational Highlights | July 24, 2024
Slide 16: Appendix B - Statement of Operations Profitability Margins
Appendix B - Statement of Operations Profitability Margins Three Months Ended Adjusted Gross Margin 6/30/2024 6/30/2023 Basis Points Change Gross Margin, as reported 69.2 % 70.6 % (140) Non-GAAP adjustments 1.2 % 1.4 % Gross Margin, adjusted 70.4 % 72.0 % (160) Three Months Ended Adjusted Operating
Slide 17: Appendix C Additional Non-GAAP Reconciliations
Appendix C Additional Non-GAAP Reconciliations 17 Q2 2024 Financial & Operational Highlights | July 24, 2024
Slide 18: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Free Cash Flow (in millions) 6/30/2024 Cash provided by (used for) operating activities $ 814 Purchases of property, plant and equipment and internal use software (155) Proceeds on disposals of property, plant and equipment 0 Free C
Slide 19: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Impact of Impact of Foreign Recent Q2 Q2 As Reported Currency Operational Acquisitions/ Organic (in millions) 2024 2023 Basis Fluctuations Basis Divestitures Basis ENDOSCOPY $ 676 $ 631 7.1 % 1.3 % 8.4 % (0.5) % 7.9 % UROLOGY 525 485 8.2 % 0.9 % 9.1 %
Slide 20: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations 12 Months Ended Reconciliation of Debt to Adjusted EBITDA (in millions) Q3 2023 Q4 2023 Q1 2024 Q2 2024 6/30/2024 Net income (loss) $ 504 $ 504 $ 493 $ 322 $ 1,823 Income tax (benefit) expense 105 1 115 98 320 Interest expense 66 65 69 77 276 Interest
Slide 21: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Three Months Ended Three Months Ended Adjusted Tax Rate 6/30/2024 Watchman U.S. Net Sales Growth 6/30/2024 Tax Rate, as reported 23.4 % Net sales growth, as reported 19.5 % Non-GAAP adjustments (10.3) % Impact of foreign currency fluctuations — % Tax
Slide 22: Reconciliations
Appendix C - Additional Non-GAAP Reconciliations Q3 2024 Estimate Full Year 2024 Estimate Net Sales Guidance (Low) (High) (Low) (High) Reported growth 13.0 % 15.0 % 13.5 % 14.5 % Impact of foreign currency fluctuations 1.0 % 1.0 % 1.0 % 1.0 % Operational growth 14.0 % 16.0 % 14.5 % 15.5 % Impact of
Slide 23: BSX: Acronym Reference Guide
BSX: Acronym Reference Guide 23 Q2 2024 Financial & Operational Highlights | July 24, 2024