Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Investor Day (June 2018)
97 slides from Agilent Technologies's investor day presentation, Jun 6, 2018
Slide 1: Agilent Technologies Analyst & Investor Day 2018
Agilent Technologies Analyst & Investor Day 2018 NYSE, June 6
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, revenues, operating profit and operating margin, growth opportunities, customer service and innovation plans, new product introduction
Slide 3: Today's Agenda
Today’s Agenda 9:00 Transformation Mike McMullen Strategy Refresh Expectations Beyond 2018 Financial Perspectives Didier Hirsch LSAG: Lead the Analytical Lab Jacob Thaysen 10:30 Break 10:45 ACG: Win in Lab Productivity Mark Doak DGG: Driving Clinical Growth Sam Raha 11:30 General Q&A Panel 12:15 Clo
Slide 4: Mike McMullen, Chief Executive Officer
Agilent Technologies Analyst & Investor Day June 6, 2018 Mike McMullen Chief Executive Officer
Slide 5: Premium Portfolio, Global Scale, Positioned for Growth
Premium Portfolio, Global Scale, Positioned for Growth Leadership in secular Global customer FY17 financial growth markets reach results Most of the world’s $52B $21B $4.5B 22.0% (3,4) TAM SAM 265,000 labs using Agilent solutions Revenue Operating Margin (1) Across 6 end markets Geographic Revenue M
Slide 6: The Agilent Journey
The Agilent Journey Launched 2015
Slide 7: Agilent Transformation
Agilent Transformation From TO Product Based Solutions Silo Oriented One Agilent Culture Complex, Slow Agile Agilent Exit Unattractive Leading, Expanding Businesses Portfolio 6 June 6, 2018 Analyst & Investor Day
Slide 8: Our Measures of Success
Agilent Transformation Our Measures of Success Outgrow the market Outgrow Expand core the Market operating margins Expand core operating margins Balanced capital allocation Balanced approach to capital allocation 7 June 6, 2018 Analyst & Investor Day
Slide 9: Delivering Growth
Agilent Transformation Delivering Growth Accelerated core growth since 2014 (1) 6.4% 6.7% Outgrow the 5.9% Market 4.9% Peer Blend(2) FY14 FY15 FY16 FY17 H118 (1) Core revenue growth excludes impact of changes in currency translation, M&A, and exited NMR business Presented on a non-GAAP basis, reconc
Slide 10: Delivering Growth
Agilent Transformation Delivering Growth Accelerated core growth since 2014 (1) 6.7% 7.0% 6.4% Outgrow the 5.9% Market 4.9% FY14 FY15 FY16 FY17 H118 (1) Core revenue growth excludes impact of changes in currency translation, M&A, and exited NMR business Presented on a non-GAAP basis, reconciliations
Slide 11: Expanding Core Operating Margins
Agilent Transformation Expanding Core Operating Margins Operating Margin(1) expansion of 410 bps since 2014 Expand core 22.0% operating 20.7% 19.6% margins 17.9% FY14 FY15 FY16 FY17 FY18 Guidance (1) Operating margin adjusted for reimbursement from Keysight for site services classified as “Other Inc
Slide 12: Operating Margin Expansion Continues in 2018
Agilent Transformation Expanding Core Operating Margins Operating Margin(1) expansion continues in 2018 22.4% Expand core 22.0% operating 20.7% 19.6% margins 17.9% FY14 FY15 FY16 FY17 FY18 Guidance (1) Operating margin adjusted for reimbursement from Keysight for site services classified as “Other I
Slide 13: Agilent Capital Deployment
Agilent Capital Deployment Shareholder friendly, investing in the business Deployed $2.6B in capital FY15 – H118 $990M Regular share repurchases Balanced Capital $550M Dividends increased 13% annually Allocation $520M Capital Investments – Organic Growth $550M M&A– Inorganic Growth 12 June 6, 2018 A
Slide 14: Agilent Capital Deployment
Agilent Capital Deployment Shareholder friendly, investing in the business Deployed $2.6B in capital FY15 – H118 $990M Regular share repurchases Balanced Capital $550M Dividends increased 13% annually Allocation $520M Capital Investments – Organic Growth $550M M&A– Inorganic Growth $200M additional
Slide 15: Increasing Return on Capital
Agilent Transformation Increasing ROIC 400 bps ROIC(1) expansion from FY15 to FY17 20% Return on 18% Capital 16% FY15 FY16 FY17 (1) ROIC = EBITA x (1-Tax Rate) / (Total Equity + LT Debt – Cash). Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided. 14 June 6, 2018 Analy
Slide 16: Agilent Earnings Growth
Agilent Earnings Growth 15% annualized EPS(1) growth FY15-FY18 May Guidance $2.65(2) $2.36 $1.98 Earnings $1.74 per Share FY15 FY16 FY17 FY18E Track Record of Superior EPS Growth (1) Earnings per share presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided; (2) Guidance a
Slide 17: Agilent Strategy Refresh
“Agilent [rusted Answers Agilent Strategy Refresh
Slide 18: Seizing Market Opportunity
Agilent Growth Strategy Seizing Market Opportunity The Chemical & Academic & Clinical & Pharma Energy Diagnostics Government Food Environment (1) $52B Opportunity $16B $4B $11B $11B $5B $5B - End Markets Opportunities - Geographic - Innovation Capabilities - Bolt-on M&A - Digital (1) TAM sizes per C
Slide 19: Agilent Strategic Growth Framework
Agilent Strategic Growth Framework Platforms LT End-markets Market growth Clinical & Diagnostics Cancer Diagnostics 5-7% Pharma Bio-Pharma 4-6% Academic & Cancer Research 3-5% Government Food 3-5% China and India Environment 2-4% & Forensics Chemical & Installed Base, China 2-4% Energy 3-5% overall
Slide 20: Agilent in Pharma
Opportunities Agilent in Pharma Strategic • Broader Presence across Pharma Priorities Value Chain • Bio-Pharma Key • Bio-Pharma Workflows Initiatives • Lab Enterprise Services • Large Scale Nucleic Acid Production >$1.3B for Agilent TAM $16B in FY17 LT Market Growth 4-6% (1) TAM sizes per Company es
Slide 21: Agilent in Chemical & Energy
Opportunities Agilent in Chemical & Energy Strategic • Leverage existing Installed Base Priorities • China Key • Innovation-Driven Lab advances Initiatives • Technology Refresh • China in-country solutions >$1.0B for Agilent TAM $4B in FY17 LT Market Growth 2-4% (1) TAM sizes per Company estimates 2
Slide 22: Agilent in Diagnostics & Clinical
Opportunities Agilent in Diagnostics & Clinical Strategic • Cancer Diagnostics Priority Key • Routine Clinical NGS Workflows Initiatives • Multi-modal offerings: IHC, Molecular, and Mass Spectrometry • Pathology: Penetrate high volume labs ~$0.7B for Agilent TAM $11B in FY17 LT Market Growth 5-7% (1
Slide 23: Agilent in Academic & Government Research
Opportunities Agilent in Academic & Government Research Strategic • Cancer Research Priorities • Portfolio Expansion Key • Expand Core Lab Presence Initiatives • Extend Channel Reach • One Agilent Academic Program ~$0.4B for Agilent TAM $11B in FY17 LT Market Growth 3-5% (1) TAM sizes per Company es
Slide 24: Agilent in Food & Environmental
Opportunities Agilent in Food & Environmental Strategic • Enable Changing Regulatory Priorities Compliance • High Growth Geographies Key • Leverage Chromatography and Mass Initiatives Spec leadership • Workflows Food Environmental ~$1.0B for TAM $5B Agilent TAM $5B LT Market in FY17 LT Market Growth
Slide 25: Agilent in China
Agilent in China Opportunities Extending Market Leadership Building on Strength $7B TAM • Expanding footprint and e-commerce capabilities • Leverage large instrument installed base for aftermarket growth • Build Clinical and Diagnostics China 20% Franchise of Agilent’s revenue today… • Country Speci
Slide 26: HOW? Innovation, M&A, Digital
HOW? Innovation M&A Digital we ZB ee
Slide 27: Innovation Driven Growth
Innovation Driven Growth Capabilities Investing More than $1 Billion Over the Next 3 Years Agilent Differentiators Unique Customer Insights Engineering Prowess Faster ● Smaller ● Lower-Cost Cross platform leverage Breakthroughs in Diagnostics & Genomics Agilent Intuvo 9000 GC Agilent Target
Slide 28: Agilent's M&A Strategy: Focus on Bolt-ons
Agilent’s M&A Strategy: Focus on “Bolt-ons” “New” Knowledge in terms of… Knowledge • End markets • “Go to market” model • Business model • Technology & operations • Regulatory Environment Traditional Core Smaller Target Price Larger Focus: Markets We Know, Profitable Acquisitions, Full Integration 2
Slide 29: Agilent M&A Execution
Agilent M&A Execution - delivering Capabilities Seahorse Biosciences – Our Largest since 2015 Last 4 Quarters: 28% Revenue Growth delivering 33% OM incrementals while increasing R&D investment Agilent Integration Model Impact: “Power of One” – Lower costs, improved capabilities • Leverage Shared Ser
Slide 30: Agilent's Digital Innovation
Capabilities Agilent’s Digital Innovation Key enabler: Customer experience, growth & operating efficiencies Digital Customer Engagement Transforming Customer Experience Digital Lab Agilent Digital Enabling products and services in the lab Framework Digital Operations Improving Operations 29 June 6,
Slide 31: What to Expect from Agilent
What to Expect from Agilent
Slide 32: Agilent – Beyond FY18: Stay the Course
Agilent – Beyond FY18 Expand core Balanced Above market operating Capital growth margin Allocation (1) 4.5%-6% 30%-40% Stay the Core revenue growth(2) Core OM 1 to 2 ppt Incrementals Course above market Result: continued double digit EPS growth (1) Assume 3-5 % Market growth environment (2) Core rev
Slide 33: Agilent's Foundation Established
Agilent’s Foundation Established Built for Growth and Earnings Expansion Proven track record of execution A differentiated growth strategy Expanding our Capabilities • Innovation • Bolt on M&A • Digital 32 June 6, 2018 Analyst & Investor Day
Slide 34: Didier Hirsch, Chief Financial Officer
Agilent Technologies Analyst & Investor Day June 6, 2018 Didier Hirsch Chief Financial Officer
Slide 35: Agenda
Agenda Drivers of Operating Margin Expansion Agilent’s Financial Model Financial Projections Capital Generation and Deployment Tax Reform Impact Concluding Remarks 34 June 6, 2018 Analyst & Investor Day
Slide 36: The Drivers of Our Operating Margin Expansion Story
The Drivers of Our Operating Margin Examples: Expansion Story FY18 May H1’18 Guidance Y/Y OM Y/Y OM Y/Y OM Y/Y OM Incremental Incremental Total commitment and clear Core OM 1 Expansion roadmap to continue driving core OM expansion. +80 bps +35% +90 bps +39% Weakening USD hurts OM%. - +22% 2 FX Stren
Slide 37: Agilent's Financial Model
Agilent’s Financial Model Beyond FY18 Base Base Guidance YoY Core Revenue at 4.5% >4.5% 5.5% Growth Core OM 30-35% >40% 39% Incremental(1) Powerful incremental margin engine (1) “Core OM” excludes FX, M&A in first year, impact of accounting changes (pension accounting) and short term impact of signi
Slide 38: Agilent's Operating Model – Operating Margin Expansion
Agilent’s Operating Model – Operating Margin Expansion Our turbo-charged flywheel Above-market Revenue Growth One Agile Agilent The Power Agilent of One Margin Partial reinvestment Expansion in R&D, Sales, and Marketing 37 June 6, 2018 Analyst & Investor Day
Slide 39: Main Drivers of Operating Margin Expansion
Main Drivers of Operating Margin Expansion OM expansion roadmap remains robust for next three years OFS = Order Fulfillment & Supply Chain Organization 38 June 6, 2018 Analyst & Investor Day
Slide 40: Financial Projections as per Operating Model
Financial Projections as per Operating Model (1) (2) (3) (1) Core revenue growth excludes impact of changes in currency translation, and M&A in first year.. Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided (2) Operating margin adjusted for reimbursement from Keysigh
Slide 41: Capital Generation and Deployment
Capital Generation and Deployment Operating Cash 110-120% of non-GAAP net profit Flow (1) CapEx $150M per year (plus any major revenue-generating investments) Capital • M&A Deployment • CapEx • Dividends (growing >10% per year) • Share Repurchase (at minimum, anti-dilutive) (1) Excluding Transition
Slide 42: Impact of Tax Reform
Impact of Tax Reform Cash Balance WW cash is readily accessible. Goal is to maintain $1B cash on balance sheet. Pro-forma Maintained at 18%. Tax Rate Continue to evaluate further reductions. Transition Tax About $450M over 8 years. Cash Tax Outlays(1) Up 4 percentage points (from 8% to 12% of non-GA
Slide 43: Key Take-aways
Key Take-aways Continuing to deliver on our model Our roadmap for Core OM expansion is as strong as ever M&A is a key complement to organic growth as a strong driver of shareholder value creation We will continue returning significant portions of strong FCF to shareholders 42 June 6, 2018 Analyst &
Slide 44: Life Science and Applied Markets Group
Life Science and Applied Markets Group Analyst & Investor Day June 6, 2018 Jacob Thaysen President
Slide 45: Life Sciences & Applied Markets Group: Business at a Glance
Life Sciences & Applied Markets Group Business at a Glance Multiple innovation vectors APPROACHES Customer Centric Exceptional Value Expand Market Share Approach Proposition RESULTS $2.2B +22.5% +5% FY17 revenue FY17 OM(1) FY17 Growth(2) (1) Presented on a non-GAAP basis, reconciliations to closest
Slide 46: LSAG Leads the Analytical Labs
LSAG Leads the Analytical Labs Delivering scientific, operational and economic value Transformative Product Introductions Delivering Trusted Answers 45 June 6, 2018 Analyst & Investor Day
Slide 47: Defining LSAG's Dimensions of Innovation
Market Drivers Customers need routine and robust solutions to improve the science and the economics of their laboratories Researcher: Defining LSAG’s Dimensions of Innovation How can I get deeper insight using multiple Driving LSAG Strategic Focus techniques? Customer Pressure Points Lab tech: Imp
Slide 48: LSAG Key Market and Platform Initiatives
LSAG Key Market and Platform Initiatives Significant opportunities for future growth KEY GROWTH INITIATIVES STRATEGIC FOCUS Win with Informatics Improve the lab economics Refresh core technology platforms for customers Accelerate Mass Spec and Multi-Omics with tailored Advance the scientif
Slide 49: Informatics: Essential part of strategic focus
Informatics: Essential part of strategic focus Accelerating time to results Connected data across end-to-end workflows LIMS Driving lab efficiency Track samples, tests & procedures throughout the lab Ensuring regulatory compliance Enabling standardized workflow Data Systems Analytics ELN Colle
Slide 50: Separation Technologies: Transformative solutions
Separation Technologies: Transformative solutions Strengthening market leading position Gas Separation Liquid Separation The Intuvo GC The InfinityLab Series Better business outcomes Best-in-class lab efficiency Transformed user Gold standard in performance and experience reliability Fast, sim
Slide 51: Accelerate Mass Spectrometry
Accelerate Mass Spectrometry Ultivo sets a new standard Total economic value Total Economic Value Work place services Uptime value value Evolving workforce Scientific value value Routine - Robust - Reliable Large Market Opportunity Quadrupole LC/MS Market : $1B, Growth – HSD 50 June 6, 2018 Analyst
Slide 52: Cell Analysis
Cell Analysis Empowering drug discovery and manufacturing Leading Academic Institution Growing importance developing Immuno-therapies Cells represent biologically relevant disease models Cells are therapeutic ‘factories’ Unmet customer needs Increased biological insight Advanced cell models
Slide 53: Bio-Pharma
Bio-Pharma Solutions for a large, high growth market AssayMap Designed for Bio-Pharma Bravo Systems Sample–to–answer solutions Targeted workflows from Discovery to BioColumns Manufacturing sample-to-data solutions Routine, Robust and Reliable platforms 1290 InfinityLab LC BioConfirm 6545XT Adv
Slide 54: Academic & Government Research
Academic & Government Research A high-opportunity market for Agilent Imperial College, London Agilent Measurement Suite Molecular Sciences Active research collaborations – cancer Research research, metabolomics and proteomics University of Southern California Agilent Center of Excellence for Bio-M
Slide 55: Drive Operational Excellence to expand margins
Drive Operational Excellence to expand margins Simplify operations through agile and scalable processes Transform New Product Development R&D Efficiency Time to Market Design for X Simplify Commercialization and Selling Processes Value Selling Time to Market Deal Velocity Continue Manufa
Slide 56: LSAG Key Take-aways
LSAG Key Take-aways Continuing Strong Momentum 1 Well positioned to win in high-growth markets 2 valued by customers Strong innovation pipeline with platforms that are 3 Continue to expand margins 55 June 6, 2018 Analyst & Investor Day
Slide 57: Today's Agenda
Today’s Agenda 9:00 Transformation Mike McMullen Strategy Refresh Expectations Beyond 2018 Financial Perspectives Didier Hirsch LSAG: Lead the Analytical Lab Jacob Thaysen 10:30 Break 10:45 ACG: Win in Lab Productivity Mark Doak DGG: Driving Clinical Growth Sam Raha 11:30 General Q&A Panel 12:15 Clo
Slide 58: Agilent CrossLab Group
Agilent CrossLab Group Analyst & Investor Day June 6, 2018 Mark Doak President
Slide 59: Agilent CrossLab Group: Business at a Glance
Agilent CrossLab Group Business at a Glance Chemistries & Supplies Instrument Services Laboratory Enterprise Solutions Multiple innovation vectors SUCCESS DRIVERS Unique lab access / Multiple innovation Capitalizing on growing/ customer engagement vectors emerging markets RESULTS $1.5B 22% 8% FY17 r
Slide 60: ACG Strategic Direction
ACG Strategic Direction To deliver innovative, integrated solutions that improve the science and economics of the laboratory Lab Productivity Complete Workflow Differentiated Customer Services Solutions Experience 59 Enterprise-Capable Market-Specific Digitally-Enabled Delivered with the customer br
Slide 61: Addressing Changing Market Dynamics and Laboratory Trends
Addressing Changing Market Dynamics and Laboratory Trends Industry demands productivity and expertise Labs Under Pressure Outsourcing Continues U.S Healthcare CRO Market, by Type ($M) 2012 – 2022 est (1) I need to do My boss expects more runs with Forecast high quality 18,000 less money results ever
Slide 62: Agilent Lab Enterprise Solutions
Agilent Lab Enterprise Solutions Pipeline of Enterprise capabilities continues to expand • Compliance Consulting NEW Consulting Services • Workflow Consulting • CrossLab Connect NEW Monitoring & Analytics • Smart Systems • Shared Services (iLab) Operational Services • Relocations & Inventory Managem
Slide 63: Enterprise Lab Solutions
Enterprise Lab Solutions Large pharma customer partners with Agilent for multi-million dollar deal $ Instrument Flexible Spend for Instrument Services Monitoring, Analytics & OpEx spend & Technology Refresh Consumables & Training Operational Services leasing options ACG is a one-stop-shop for custom
Slide 64: Complete Workflow Solutions
Complete Workflow Solutions Consumables portfolio expansion into most attractive markets Market & Customer Expanding Core Capabilities in Leveraging Strong Brand Drivers Biopharma and Workflows Identity to Enhance Value Pharma, specifically China ValueLab biopharma Low-Cost Consumables Food & en
Slide 65: Consumables (Chemistries and Supplies) Business
Consumables (Chemistries and Supplies) Business A fast growing business with significant market opportunities ahead Sample Prep Supplies Columns Delivers Portfolio supports 12% of >250,000 >17,000 Agilent revenue chromatography and spectroscopy products and instrument labs worldwide high operating t
Slide 66: Differentiated Customer Experience
Differentiated Customer Experience Digital innovation impacting growth and operating efficiencies Digital Customer Engagement • 60% increase in eCommerce business Digital Customer • First in industry on-line agreement renewals Engagement Transforming Customer Experience Digital Lab Agilent • Extensi
Slide 67: Agilent Customer Experience (CX) Initiative
Agilent Customer Experience (CX) Initiative Differentiating Agilent’s Customer Experience Continuously Improve Our Current CX Delivering on top CX improvement breakthroughs One Agilent CX Improvement Engage all employees in an Agilent wide CX improvement approach Agilent’s Customer Experience Transf
Slide 68: China's Attractive Aftermarket Opportunity
China’s Attractive Aftermarket Opportunity Executing on 5-year plan (2016-2021) to deliver double digit growth Strategic Focus Areas Market & Customer Drivers Strengthen China- • Maturing aftermarket Tailored Reach & Expand Portfolio • Massive installed base Capability • Digitally-connected customer
Slide 69: CrossLab Strategic Approach Validated By Market and Customers
CrossLab Strategic Approach Validated By Market and Customers Consistently delivering high single digit growth Above Market Core Growth ACG Revenue ($M) Growth Drivers $1,600 Customer-focused approach to developing and delivering strong portfolio of complete $1,400 workflows and offerings Increa
Slide 70: ACG Key Take-Aways
ACG Key Take-Aways Positioned for long-term growth 1 Focus on top customer pain points and delivering solutions to their challenges 2 Bringing complete workflows to the market Significant growth potential, with the entire 3 laboratory as our marketplace 4 Unique approach to the market, focused on sc
Slide 71: Diagnostics and Genomics Group
Diagnostics and Genomics Group Analyst & Investor Day June 6, 2018 Sam Raha President
Slide 72: Diagnostics and Genomics Group: Business at a Glance
Diagnostics and Genomics Group Business at a Glance Multiple innovation vectors FOCUS AREAS Cancer Diagnostics Cancer Research Bio-Pharma RESULTS $772M 19% +8% FY17 revenue FY17 OM(1) FY17 Growth(2) (1) Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided (2) Core reven
Slide 73: DGG's core strategy
DGG’s core strategy Drive growth by delivering value from discovery to decision Diagnostics and Genomics Group is improving the human condition by bringing the power of precision medicine to labs, partners and patients globally Enable Fight Provide Partner New Cancer on Genetic Novel Discoveries man
Slide 74: Demonstrated results with continued momentum
Demonstrated results with continued momentum Driving success through operational excellence Results of operational focus: FY15 – FY17 Sustained Transformational Core revenue growth Operating Margin expansion +8% CAGR 13% 19% (1) Integration is driving value Core strengths for ongoing execution Patho
Slide 75: DGG is positioned for ongoing success
DGG is positioned for ongoing success Leading portfolio and proven execution capabilities accelerate top-line growth and margin expansion REVENUE GROWTH Cancer Regional expansion diagnostics focus in China Nucleic acid Leverage Agilent drug-development digital capabilities OPERATING MARGIN EXPANSION
Slide 76: Delivering on the promise of precision medicine
Delivering on the promise of precision medicine Accelerate momentum in pathology with reagent menu expansion and workflow solutions Companion diagnostics portfolio with industry leading tests Commercial execution through recognized global pathology channel Pathology provides Agilent a substantial po
Slide 77: New, attractive markets are quickly developing
New, attractive markets are quickly developing DGG is positioned to be a leader HIGH-GROWTH MARKETS NGS based $600M SAM (1) Nucleic Acid $450M SAM (1) Clinical Oncology 25% CAGR Therapeutics 20% CAGR GROWTH DRIVERS Increasing adoption of genomics tools across the patient care continuum Increasing in
Slide 78: NGS will transform cancer diagnostics
NGS will transform cancer diagnostics Poised to become routine in cancer care Market Dynamics Lasergen Acquisition Increased Regulatory Clarity Closed May 7, 2018 Regulatory bodies are providing increased definition, yielding increasing number of Clinical NGS product Proprietary Lightning Terminator
Slide 79: Agilent's clinical NGS strategy
Agilent’s clinical NGS strategy Agilent strengths Integrated clinical workflow solution Extracted DNA / RNA Clinical pathology lab expertise Bravo Automation • Best-in-class diagnostic assays Magnis Library preparation • Global footprint in routine Dx labs SureSelect Next Gen Automation (new product
Slide 80: Nucleic acid-based therapeutics are on the rise
Nucleic acid-based therapeutics are on the rise An increasingly valuable treatment modality Market Dynamics Frederick Site One of the largest GMP nucleic acids production sites: Market structure evolution $185M investment There are very few GMP-grade competitors in the market today. Agilent, second
Slide 81: Agilent's nucleic acid-based therapeutics strategy
Agilent’s nucleic acid-based therapeutics strategy Enabling partners to create therapies for previously undruggable targets Agilent strengths Partnerships Expertise and Knowledge Agilent has a long history of oligonucleotide synthesis expertise and innovation Highest Quality Nucleic Acid API We part
Slide 82: DGG Key Take-aways
DGG Key Take-aways Delivering today and poised for growth tomorrow 1 Proven business performance and capabilities Sustained growth through compelling portfolio 2 addressing attractive markets 3 Well poised to be a leader in new attractive markets 81 June 6, 2018 Analyst & Investor Day
Slide 83: Q&A
~» Agilent [rusted Answers Q&A
Slide 84: Concluding Remarks
Concluding Remarks Mike McMullen Chief Executive Officer Agilent Technologies
Slide 85: Today's Key Take-aways
Agilent 2018 Investor Day Today’s Key Take-aways Agilent’s Transformation is Delivering • Our foundation is in place • Proven track record of execution Differentiated Growth Strategies • Leverage unique company strengths & market leadership positions Optimal Combination: • Above market organic growt
Slide 86: Agilent Technologies Analyst & Investor Day 2018
Agilent Technologies Analyst & Investor Day 2018 NYSE, June 6
Slide 87: Reconciliations of Revenue Excluding Acquisitions and Divestitures and Currency
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE EXCLUDING ACQUISITIONS AND DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Six Months Ended Year Ended Year Ended Year Ended Year Ended April 30, October 31, October 31, October 31, October 31, % % % % % 2018
Slide 88: Reconciliation of Adjusted Non-GAAP Income from Operations and Operating Margins
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating Operating Operating Operating FY 2017 Margin % FY 2016 Margin % FY 2015 Margin % FY 2014 Margin % Agilent GAAP Revenue $ 4,472 $ 4,202 $
Slide 89: Non-GAAP Net Income and Diluted EPS Reconciliations
AGILENT TECHNOLOGIES, INC. NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS (In millions, except per share amounts) (Unaudited) FY 2017 FY 2016 FY 2015 Net income Diluted EPS Net income Diluted EPS Net income Diluted EPS GAAP net income $ 684 $ 2.10 $ 460 $ 1.40 $ 438 $ 1.31 Non-GAAP adjustments:
Slide 90: Reconciliation of Adjusted Non-GAAP Income from Operations to Reportable Segments
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND INCOME FROM OPERATIONS TO REPORTABLE SEGMENTS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) Operating FY 2017 Margin % Revenue: Life Sciences and Applied Markets Group (LSAG) $ 2,169 Agile
Slide 91: Reconciliations of Revenue by Segment Excluding Acquisitions and Divestitures
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE BY SEGMENT EXCLUDING ACQUISITIONS AND DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) Life Sciences and Applied Markets Group Diagnostics and Genomics Group Agilent CrossLab Group (LSAG) (DGG) (ACG) Year Ended
Slide 92: Reconciliation of Core Non-GAAP Income from Operations
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF CORE NON-GAAP INCOME FROM OPERATIONS (In millions, except margin data) (Unaudited) H1'18 H1'17 Revenue: $ 2,417 $ 2,169 Income from operations: GAAP Income from operations $ 454 $ 407 Add: Intangible amortization 50 62 Business exit and divestiture costs
Slide 93: Reconciliation of Core Non-GAAP Income from Operations
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF CORE NON-GAAP INCOME FROM OPERATIONS (In millions, except margin data) (Unaudited) FY 2017 FY 2016 Revenue: $ 4,472 $ 4,202 Income from operations: GAAP Income from operations $ 841 $ 615 Add: Asset impairments — 4 Intangible amortization 117 152 Business
Slide 94: Reconciliation of Incremental Revenue Dollar to Income from Operations
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF INCREMENTAL REVENUE DOLLAR TO INCOME FROM OPERATIONS ((In millions, except margin data) (Unaudited) Year over Year H1'18 H1'17 $ Change Incremental GAAP Revenue $ 2,417 $ 2,169 $ 248 Income from operations $ 454 $ 407 $ 47 19% Non-GAAP Revenue $ 2,417 $ 2
Slide 95: Reconciliation of Adjusted Non-GAAP Income from Operations
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS (In millions, except margin data) (Unaudited) H1'18 H1'17 Revenue: $ 2,417 $ 2,169 Income from operations: GAAP Income from operations $ 454 $ 407 Add: Intangible amortization 50 62 Business exit and divestiture co
Slide 96: Reconciliation of Core Revenue, Adjusted Income from Operations and Operating Margin
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF CORE REVENUE, ADJUSTED INCOME FROM OPERATIONS AND OPERATING MARGIN (In millions, except margin data) (Unaudited) H1'18 Less: Non-GAAP Less: Non-GAAP Foreign Core excluding FX M&A Currency Revenue $ 2,417 $ 92 $ 2,325 $ 8 $ 2,317 (a) Adjusted income from o
Slide 97: Reconciliation of ROIC
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF ROIC (In millions) (Unaudited) FY 2017 FY 2016 FY 2015 Numerator: Non-GAAP income from operations $ 986 $ 871 $ 792 Less: Taxes (177) (165) (158) Annualized return $ 809 $ 706 $ 634 Denominator: Equity $ 4,831 $ 4,243 $ 4,167 Add: Short-term debt 210 - -