Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q3 2024 Earnings Presentation
27 slides from Becton, Dickinson And's earnings presentation, Aug 1, 2024
Slide 1: Q3 FY24 Earnings Presentation
Q3 FY24 Earnings Presentation August 1, 2024 Advancing the TM world of health
Slide 2: Caution Concerning Forward-Looking Statements and Non-GAAP Financial Measures
Caution Concerning Forward-Looking Statements This presentation and accompanying audio webcast contain certain estimates and other forward-looking statements (as defined under federal securities laws) regarding BD’s future prospects and performance, including, but not limited to, future revenues, ma
Slide 3: Basis of Presentation and Guidance Considerations
Basis of Presentation All dollar amounts presented are USD ($) in millions, unless otherwise indicated, except per share figures. FXN denotes currency-neutral basis. Revenue and adjusted revenue year-over-year change comparisons are on an FXN basis unless otherwise noted. Adjusted Revenues excludes
Slide 4: Q3 results reflect strong execution of our BD 2025 strategy
Q3 results reflect strong execution of our BD 2025 strategy Broad-based organic revenue growth of 5.2% reflects strong volume growth and share gains across portfolio “It’s never been clearer that our teams are transforming BD into the BD Alaris now at historical quarterly run rate of ~$100M, wit
Slide 5: Innovation in high-growth PureWick franchise driving $1B opportunity by 2030
Innovation in high-growth PureWick franchise driving $1B opportunity by 2030 Launched Next-gen PureWick Expanding PureWick Male Expanding care through increased Female External Catheter addressable market into the home user mobility options BD PureWick Flex Female External Catheter BD PureWick Male
Slide 6: Enabling new discoveries with continued cadence of innovation
Enabling new discoveries with continued cadence of innovation Expanding access to new-to-world Increasing lab productivity and Breaking performance technologies for discovery resolving complex biology barriers in flow cytometry FACSDiscover S8 Cell Sorter 3- and 4- FACSDiscover A8 Cell Analyzer Real
Slide 7: Biologics and GLP-1 drug therapies – a significant growth catalyst for FY25+
Biologics and GLP-1 drug therapies – a significant growth catalyst for FY25+ GLP-1 drug delivery a potential $1B product category by 2030 driven by our strategy to enhance innovation leadership, expand manufacturing scale and prioritize quality excellence Prefillable Syringes Self-Administered Injec
Slide 8: Corporate sustainability: Together We Advance
Corporate sustainability: Together We Advance Meeting our 2030+ sustainability goals FY23 Corporate Sustainability Report highlights compared to FY19 baseline: • Reduced Scope 1 and 2 greenhouse gas emissions 18%, surpassing 13% goal • Doubled number of sites using green electric power and solar pow
Slide 9: Q3 FY24 Consolidated Performance Summary
Q3 FY24 Consolidated Performance Summary Adj. Revenue Adj. Operating Margin Adj. EPS Operating Cash Flow $5.1B 25.2% $3.50 $2.7B +5.2% Organic +220 bps YoY +18.2% YoY YTD Revenue by segment Adj. Revenue by geography BD Life Sciences United States $1,260M 57% BD Medical +3.5% FXN $2,558M +5.6% FXN BD
Slide 10: Q3 FY24 Segment Revenue and Key Highlights
Q3 FY24 Segment Revenue and Key Highlights BD Medical BD Life Sciences BD Interventional MDS IDS SURG $1,123M $896M $376M +3.9% FXN +5.3% FXN (2.5%) FXN $2,558M MMS $1,260M incl. ~(1,220) bps $1,240M PI $840M divestiture impact +2.6% FXN $488M +5.6% FXN +11.6% FXN +3.5% FXN +2.6% FXN +6.4% Organic P
Slide 11: Q3 FY24 Adjusted Income Statement
Q3 FY24 Adjusted Income Statement (As adjusted) $ in millions, except per share data Q3 FY24 Q3 FY23 Y/Y ∆ Adj. Revenues $5,057 $4,878 3.7%* Organic revenue growth 5.2% Gross Profit $2,745 $2,567 6.9% Gross margin 54.3% 52.6% 170 bps SSG&A $1,191 $1,189 0.2% % of revenues 23.6% 24.4% (80) bps R&D $2
Slide 12: Q3 FY24 YTD Free Cash Flow
Q3 FY24 YTD Free Cash Flow +106% • BD Excellence operating system yielding strong results including improved inventory and capital expenditure efficiency • 80%+ YTD free cash flow conversion $2,237M • Returned over $1B of capital YTD to shareholders through dividends and share $1,085M repurchases Q3
Slide 13: FY24 Guidance Summary
FY24 Guidance Summary August 1, 2024 May 2, 2024 Comments Organic revenue 5.0% to 5.25% 5.5% to 6.25% • Segment growth expectations relative to BDX organic growth range: growth (FXN) Midpoint of 5.125% Midpoint of 5.875% • Medical in-line, Life Sciences below and Interventional above Adj. revenue gr
Slide 14: Appendix
Appendix Q3 FY24 EARNINGS PRESENTATION AUGUST 1, 2024 14
Slide 15: Our innovation pipeline - new product launches expected by FY25
Our innovation pipeline - Over 100 new product launches expected by FY25(1) Recent innovation driving growth Near and mid-term catalysts Select pipeline products Next Gen Parata Max® 2 BD Medical Blister Central Fill BD Alaris Site-Rite 9 BD Pyxis Inspection BD Intellivault EU Next Gen BD Intellipor
Slide 16: Glossary
Glossary ADC Automated Dispensing Cabinets HT High Throughput RVP Respiratory Viral Panel Identification & Antibiotic Susceptibility Adj. Adjusted ID/AST SCF Sterile, Clean, Ready to Fill Testing B Billion IDS Integrated Diagnostics Solutions SSG&A Shipping, Selling, General and Administrative BDB B
Slide 17: Supplemental Reconciliation – Revenues by Business Segments and Units
Supplemental Reconciliation – Revenues by Business Segments and Units For the Three Months Ended June 30, (Unaudited; $ in millions) (1) Represents the recognition of accruals resulting from recent developments relating to the Italian government medical device pay back legislation, as well as anothe
Slide 18: Supplemental Reconciliation – Reported Geographic Revenue to Adjusted Revenue
Supplemental Reconciliation – Reported Geographic Revenue to Adjusted Revenue For the Three Months Ended June 30, (Unaudited; $ in millions) (1) Represents the recognition of accruals resulting from recent developments relating to the Italian government medical device pay back legislation, as well a
Slide 19: Supplemental Reconciliation – Reported Revenue to Organic Revenue
Supplemental Reconciliation – Reported Revenue to Organic Revenue For the Three Months Ended June 30, (Unaudited; $ in millions) D=(A-B)/B E=(A-B-C)/B A B C % Change 2024 2023 FX Impact Reported FXN TOTAL REVENUES $4,990 $4,878 (31) 2.3% 2.9% Add: Reduction for government legislative and legal matte
Slide 20: Supplemental Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS For the Three Months Ended June 30, (Unaudited) (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with integration and restructuring activitie
Slide 21: Supplemental Reconciliation
Supplemental Reconciliation For the Three Months ended June 30, 2024 (Unaudited; $ in millions, except per share data) Purchase Product, Income tax (A) Notes for Non- Reported accounting Integration Restructuring Transaction Separation - European litigation, and benefit of Adjusted (Non- GAAP (GAAP)
Slide 22: Supplemental Reconciliation
Supplemental Reconciliation For the Three Months ended June 30, 2023 (Unaudited; $ in millions, except per share data) Purchase Product, Income tax (B) Notes for Non- Reported accounting Integration Restructuring European litigation, and benefit of Adjusted (Non- GAAP (GAAP) adjustments costs costs
Slide 23: Supplemental Reconciliation
Supplemental Reconciliation Change in Three Months Ended June 30, 2024 Compared With Three Months Ended June 30, 2023 (Unaudited; $ in millions, except per share data) (A) (B) (C) = (A) - (B) (D) = (C) / (B) Adjusted Adjusted Adjusted $ Adjusted % (Non-GAAP) (Non-GAAP) Change Change Revenues $ 5,057
Slide 24: Supplemental Reconciliation – Net Leverage
Supplemental Reconciliation – Net Leverage Last Twelve Months Ended June 30, 2024 (Unaudited; Amounts in millions) (1) Represents costs associated with integration and restructuring activities, as well as costs associated with simplification and cost saving initiatives. (2) Represents transaction co
Slide 25: Supplemental Reconciliation – Free Cash Flow and Free Cash Flow Conversion
Supplemental Reconciliation – Free Cash Flow and Free Cash Flow Conversion For the Nine Months Ended June 30, 2024 A B C=A-B D=C/B (Unaudited; Amounts in millions) 2024 2024 2023 Change % Change Reported GAAP Net Income $1,305 Net Cash Provided by Continuing Operating Activities $2,666 $1,665 $1,001
Slide 26: FY2024 Outlook Reconciliation
FY2024 Outlook Reconciliation Notes: - Revenue Adjustment Impact reflects the recognition of accruals resulting from recent developments relating to the Italian government medical device pay back legislation, as well as another legal matter, and which substantially relate to years prior to the curre
Slide 27: FY2024 Outlook Reconciliation
FY2024 Outlook Reconciliation (1) Includes amortization and other adjustments related to the purchase accounting for acquisitions. (2) Represents costs associated with integration and restructuring activities. (3) Represents costs recorded to Other operating (income) expense, net incurred in connect
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