Becton, Dickinson And Company · NYSE:BDX

Becton, Dickinson And — Q2 FY2016 Earnings Presentation

30 slides from Becton, Dickinson And's earnings presentation, May 5, 2016

  1. Slide 1: Second Quarter Results Fiscal Year 2016

    Second Quarter Results Fiscal Year 2016 May 5, 2016 © 2016 BD. BD, the BD Logo and all other trademarks are property of Becton, Dickinson and Company.

  2. 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 second quarter earnings release and in our recent SEC filings. Non-GAAP Financial Measures

  3. Slide 3: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President

  4. Slide 4: Q2 FY 2016 Business Highlights

    Q2 FY 2016 Business Highlights  Solid Q2 performance  Results continue to demonstrate the breadth and diversity of portfolio  Great traction as we mark the one-year anniversary of CareFusion close  Portfolio review complete with Respiratory joint venture announcement and sale of Spine business 

  5. Slide 5: Q2 FY 2016 Financial Highlights

    Q2 FY 2016 Financial Highlights Second Quarter Year-to-Date Comparable Comparable As FXN FXN $ Growth % FXN $ Growth % FXN Adjusted Growth% Growth% Growth% Growth% Revenues $3,071 49.7% 55.2% 5.3% $6,063 47.8% 54.5% 3.5% EPS $2.18 35.4% 44.7% N/A $4.13 31.5% 44.9% N/A  Second quarter revenue growth

  6. Slide 6: Financial Update

    Financial Update Christopher Reidy Chief Financial Officer and Executive Vice President of Administration

  7. Slide 7: FY 2016 Adjusted Revenues by Segment

    FY 2016 Adjusted Revenues by Segment Second Quarter Year-to-Date Comparable Comparable FXN FXN As Adjusted $ Growth % FXN $ Growth % FXN Growth% Growth% Growth% Growth% Total $3,071 49.7% 55.2% 5.3% $6,063 47.8% 54.5% 3.5% Revenues Medical 2,135 93.1% 99.5% 6.1% 4,194 92.6% 100.5% 4.0% Life Sciences

  8. Slide 8: FY 2016 Adjusted U.S. and International Revenues

    FY 2016 Adjusted U.S. and International Revenues Second Quarter Year-to-Date Comparable Comparable Growth FXN FXN As Adjusted $ FXN $ Growth % FXN % Growth% Growth% Growth% Growth% U.S. $1,722 99.6% 99.6% 5.7% $3,419 95.5% 96.1% 3.6% Medical 1,281 186.6% 186.6% 5.5% 2,553 181.2% 182.3% 3.7% Life Sci

  9. Slide 9: FY 2016 Developed & Emerging Markets

    FY 2016 Developed & Emerging Markets Second Quarter Year-to Date % of BD Comparable % of BD Comparable As Adjusted $ $ Revenues FXN Growth % Revenues FXN Growth % Developed $2,628 86% 5.3% $5,155 85% 3.5% Markets Emerging $443 14% 5.1% $908 15% 3.7% Markets China $163 5% 9.4% $326 5% 6.9% Note: Emer

  10. Slide 10: FY 2016 Safety Revenues

    FY 2016 Safety Revenues Second Quarter Year-to-Date Comparable Comparable FXN FXN $ Growth % FXN $ Growth % FXN Growth% Growth% Growth% Growth% Total Safety $733 33.2% 38.8% 6.7% $1,470 30.8% 37.0% 5.8% By Geography U.S. 443 50.7% 50.7% 4.5% 890 47.7% 47.7% 4.2% International 290 13.1% 25.1% 9.9% 58

  11. Slide 11: Q2 FY 2016 Adjusted Income Statement

    Q2 FY 2016 Adjusted Income Statement Favorable (Unfavorable) Adjusted Q2 Adjusted Q2 FXN % $ Change % Change FY 2016 FY 2015 Change Revenues 55.2% $3,071 $2,051 $1,020 49.7% Comparable basis 5.3% Gross Profit 1,625 1,063 562 52.8% 58.8% % of Revenues 51.9% Comparable basis 52.9% 51.4% 7.9% SSG&A 751

  12. Slide 12: Q2 FY 2016 Adjusted Margin Changes Year-Over-Year

    Q2 FY 2016 Adjusted Margin Changes Year-Over-Year Gross Profit (% of sales) 1.7% (0.1%) 52.9% 51.9% 51.4% 50.3% Q2 2015 Q2 2015 Q2 2015 Performance Currency Q2 2016 BDX Legacy CFN Legacy Comparable BDX & CFN Operating Margin (% of sales) 3.7% (0.3%) 22.6% 20.6% 19.2% 16.2% Q2 2015 Q2 2015 Q2 2015 Pe

  13. Slide 13: Guidance

    Guidance Christopher Reidy Chief Financial Officer Executive Vice President of Administration

  14. Slide 14: FY 2016 Adjusted EPS Guidance

    FY 2016 Adjusted EPS Guidance $9.01 to $8.73 to $9.08 February $8.80 ~4% FXN Guidance ~22% FXN (~9%) $8.50 to $8.57 ~2.0% May Update (~7.0%) 9% to ~3% 10% (~1%) $6.40 to $6.47 FY15 BDX BDX Tax Rate Pension Operational FY16 February FY16 Estimated FY16 Legacy Legacy Improvement Impact Accretion Adjus

  15. Slide 15: FY 2016 Guidance

    FY 2016 Guidance As Adjusted February Guidance May Update Total Revenues – FXN 24.5% to 25.0% 24.5% to 25.0% Note: Guidance Total Revenues – Rptd 20.0% to 20.5% 21.5% to 22.0% updates denoted in bold. Medical Revenues – FXN 36.0% to 36.5% 36.0% to 36.5% Comparable Organic 4.5% to 5.0% 4.5% to 5.0% T

  16. Slide 16: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President

  17. Slide 17: Q2 FY2016 Business Update: Growth and Strategic Initiatives

    Q2 FY2016 Business Update: Growth and Strategic Initiatives • Two PAS new product launches: – BD UltraTouch™ Push Button Collection Set launched WW New Product – BD Barricor™ launched x-US Innovation • Positive uptake of FACSSymphony high- parameter instruments • Completed strategic review: Strategi

  18. Slide 18: Q2 FY2016 Business Update: Operational Efficiencies

    Q2 FY2016 Business Update: Operational Efficiencies • G&A functional transformation continues: Operational – Ongoing expansion of shared services Efficiencies – Harmonizing IT infrastructure and systems • Remain on-track to achieve FY16 cost synergies 170 to 190 bps Base plan efficiencies and ~100 b

  19. Slide 19: Key Takeaways

    Key Takeaways  Solid Q2 results demonstrate portfolio diversity  Great progress one-year post close of CareFusion acquisition  Post-CFN strategic portfolio review completed  Maintain currency-neutral revenue guidance  Raise adjusted EPS guidance range 19

  20. Slide 20: Advancing the World of Health

    Advancing the World of Health

  21. Slide 21: Q2 FY 2016 & FY 2015 Adjustment Reconciliations

    Q2 FY 2016 & FY 2015 Adjustment Reconciliations (Unaudited; Amounts in millions, except per share data) Three Months Ended March 31, 2016 Selling and Research and Acquisitions and Administrative Development other Income Tax Diluted Earnings Revenues Gross Profit Expense Expense restructurings Operat

  22. Slide 22: Q2 YTD FY 2016 & FY 2015 Adjustment Reconciliations

    Q2 YTD FY 2016 & FY 2015 Adjustment Reconciliations (Unaudited; Amounts in millions, except per share data) Six Months Ended March 31, 2016 Selling and Research and Acquisitions and Administrative Development other Income Tax Diluted Earnings Revenues Gross Profit Expense Expense restructurings Oper

  23. Slide 23: Q2 FY 2016 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

    Q2 FY 2016 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Three Months Ended March 31, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2016 2015 Growth Translation Growth Growth % Growth % Reported Diluted Earnings per Share $ 1.56 $ 1.08 $ 0.48 $ (0.14

  24. Slide 24: Q2 YTD 2016 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

    Q2 YTD 2016 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Six Months Ended March 31, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2016 2015 Growth Translation Growth Growth % Growth % Reported Diluted Earnings per Share $ 2.62 $ 2.28 $ 0.34 $ (0.40)

  25. Slide 25: FY 2016 Reconciliation – FX Impact Emerging and Developed Markets

    FY 2016 Reconciliation – FX Impact Emerging and Developed Markets (Unaudited; Amounts in millions) Emerging Markets Developed Markets Q1 Q2 Q2 YTD Q3 Q4 Full Year Q1 Q2 Q2 YTD Q3 Q4 Full Year BDX Reported 2016 465 443 908 2,527 2,628 5,155 Adjusted Comparable Growth % (8.7) (5.2) (7.0) (2.4) 2.8 0.2

  26. Slide 26: FY 2016 Reconciliation – FX Impact Emerging Markets Safety and China

    FY 2016 Reconciliation – FX Impact Emerging Markets Safety and China (Unaudited; Amounts in millions) Emerging Markets Safety Q1 Q2 Q2 YTD Q3 Q4 Full Year BDX Reported 2016 100 104 204 Adjusted Comparable Growth % (3.6) 2.9 (0.4) FX Neutral Growth % 10.9 15.6 13.2 FX Impact % (14.4) (12.7) (13.6) A

  27. Slide 27: Q2 FY 2016 Comparable Margin Reconciliation

    Q2 FY 2016 Comparable Margin Reconciliation (Unaudited; Amounts in millions) Three Months Ended March 31, 2016 Selling and Research and Administrative Development Revenues Gross Profit Expense Expense Operating Income Adjusted $ for Three Months Ended March 31, 2016 A $ 3,071 $ 1,625 $ 751 $ 182 $ 6

  28. Slide 28: Q2 YTD FY 2016 Comparable Margin Reconciliation

    Q2 YTD FY 2016 Comparable Margin Reconciliation (Unaudited; Amounts in millions) Six Months Ended March 31, 2016 Selling and Research and Administrative Development Revenues Gross Profit Expense Expense Operating Income Adjusted $ for Six Months Ended March 31, 2016 A $ 6,063 $ 3,191 $ 1,496 $ 369 $

  29. Slide 29: FY 2016 Outlook Reconciliation

    FY 2016 Outlook Reconciliation FY2015 FY2016 Outlook Revenues % Increase FX Impact % Increase FXN BDX As Reported Revenue $ 10,282 21.5% - 22.0% ~(3.0%) 24.5% - 25.0% Deferred Revenue Adjustment 20 NM NM NM BDX As Adjusted Revenue 10,302 21.5% - 22.0% ~(3.0%) 24.5% - 25.0% CareFusion First Half Reve

  30. Slide 30: FY 2016+ Product Launches

    FY 2016+ Product Launches Medical Segment Program / Product Planned Launch Date • BD Insulin Infusion Sets  FY 2016 • Pyxis Mini  FY 2016 Life Sciences Segment Program / Product Planned Launch Date • BD MAX™ – Extended Enteric Bacterial  FY 2016 EU / FY 2017 U.S. • BD MAX™ – Enteric Viral  FY 20

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