Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q2 2020 Earnings Presentation
34 slides from Becton, Dickinson And's earnings presentation, May 7, 2020
Slide 1: Second Quarter Results Fiscal Year 2020
Second Quarter Results Fiscal Year 2020 May 7, 2020 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 2: Forward-Looking Statements and 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 earnings release furnished as an exhibit to the Form 8-k that BD filed today with the SEC,
Slide 3: Making an impact: BD's response to COVID-19
Making an impact: BD’s response to COVID-19 Tom Polen CEO and President 3 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 4: BD's essential role in the world's COVID-19 response
BD is proud of the essential role we play in the world’s COVID-19 response 4 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 5: BD's comprehensive response to an unprecedented healthcare crisis
BD’s unmatched capabilities ensure a comprehensive response to an unprecedented healthcare crisis BD PANDEMIC RESPONSE PRIORITIES 1. Protect the health & safety of our associates 2. Mobilize our world-class operations 3. Advance solutions across the continuum of care 4. Take proactive measures and e
Slide 6: Protecting the health, safety and well-being of our team
PANDEMIC RESPONSE PRIORITY #1 Protecting the health, safety and well-being of our team Early to implement visitor restrictions, travel restrictions, limits on group meetings Enabled remote work for office-based associates Protecting Implemented temperature monitoring and increased PPE to health & sa
Slide 7: Leveraging manufacturing excellence to address critical needs
PANDEMIC RESPONSE PRIORITY #2 Leveraging our world-class manufacturing excellence to address critical customer and patient needs Built for scale & impact 100X • Significantly ramped production increase of certain of all critical-to-COVID devices, 10 IV extension sets maintaining our strong focus on
Slide 8: Advancing COVID-19 solutions across the continuum of care
PANDEMIC RESPONSE PRIORITY #3 BD is uniquely positioned to advance COVID-19 solutions across the continuum of care CONTINUUM OF CARE Discovery Diagnosis Delivery of care & treatment of disease Life Sciences Medical Interventional Improving diagnosis & selection of Optimizing core healthcare Advancin
Slide 9: Launching new diagnostic solutions for COVID-19
PANDEMIC RESPONSE PRIORITY #3 Advancing innovation and launching new diagnostic solutions to help solve pressing healthcare needs Molecular PCR Point-of-care antigen Serology / Antibody (in development) Easy-to-use, real-time PCR tests on Rapid point-of-care test on BD Rapid serology test to detect
Slide 10: Breadth, depth and global scale to enable patient care
PANDEMIC RESPONSE PRIORITY #3 Unparalleled breadth, depth and global scale to enable patient care – wherever care occurs “You guys are re-defining what it means to be a partner through this difficult process … Way to double down and continue to deliver excellence across the board!” - System Vice Pre
Slide 11: Managing headwinds and engaging customers on recovery
PANDEMIC RESPONSE PRIORITY #4 We are managing headwinds and actively engaging with customers on recovery efforts Interventional Medical Life Sciences Routine testing & Elective & Hospital utilization specimen collection non-urgent (inpatient care & procedures capital spend) Research activity & clini
Slide 12: Advancing our long-term strategy to emerge strong
Advancing our long-term strategy to emerge strong and better positioned for value creation 12 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 13: Q2 results and COVID-19 impact
Q2 results and COVID-19 impact Chris Reidy Executive Vice President, CFO and Chief Administrative Officer 13 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 14: Continuing to create and deliver value to all stakeholders
Continuing to create and deliver value to all stakeholders Prioritizing the needs of our associates 1 and customers around the world Taking prudent actions across BDX 2 with a focus on liquidity 3 Remaining focused on our long-term strategy 14 BD and the BD Logo are trademarks of Becton, Dickinson a
Slide 15: Financial results: Q2 FY 2020
Financial results: Q2 FY 2020 Q2 YTD Revenues $4,253 $8,479 Q2 growth ahead of Revenue expectations despite FXN % growth +2.4% +2.5% Growth impact from COVID-19 COVID impact ~(140 bps) % growth +1.4% +1.5% Q2 operating margins Adjusted OIBT (1) $1,051 $2,064 ahead of expectations driven Margin by lo
Slide 16: Cash and liquidity update
Cash and liquidity update Accessed • Added $1.9B in 364-day term loans capital markets • Increased our credit facility by $0.4B to $2.63B for liquidity • Gross leverage at 3.9x as of 3/31 Deleveraging • Expect to paydown ~$1B debt this year (excluding the term loan) remains a key priority • Remain c
Slide 17: Geographic revenue highlights
Geographic revenue highlights Q2 revenue $ and FXN growth Q2 COVID Impact $2,415 United States ~+0.7% 3.2% $1,839 International ~(4%) 1.5% $3,686 Developed Markets 4.3% ~+0.6% $568 Emerging (8.0%) Markets ~(13%) $196 China ~(27%) (29.9%) 17 BD and the BD Logo are trademarks of Becton, Dickinson and
Slide 18: Medical segment revenue
Medical segment revenue Medication Delivery Solutions: $904 Q2 Q2 (1.3%) YTD (0.6% ) Strong injection and vascular access device sales particularly in the U.S. and Europe, offset by lower volumes in China due (2.5%) (1.7%) to COVID-19 along with the ongoing China tendering process Q2 COVID impact: ~
Slide 19: Life sciences segment revenue
Life sciences segment revenue Q2 Diagnostic Systems: $434 Performance driven by a stronger than normal flu season +12.9% +9.6% Q2 YTD and increased demand in COVID-19 related testing +11.5% +8.4% Q2 COVID impact: ~+200 bps $1,113 +7.1% FXN COVID impact:~(120 bps) Preanalytical Systems: $400 Strong g
Slide 20: Interventional segment revenue
Interventional segment revenue Q2 Peripheral Intervention: $399 Broad-based strength driving growth through continued +4.0% +4.2% Q2 YTD expansion of Venovo®, WavelinQTM and CoveraTM offset +3.1% +3.3% by lower oncology and vascular procedures in China $990 Q2 COVID-19 impact: ~(500 bps) +3.3% FXN C
Slide 21: Adjusted gross and operating margins: Q2 FY 2020
Adjusted gross and operating margins: Q2 FY 2020 55.3% 0.5% 54.7% Adjusted (1.1%) Gross COVID-19 related pressure on margin given high fixed margin costs and unfavorable mix of impacted revenues Q2 2019 Performance Currency Q2 2020 0.4% 24.7% 0.7% Adjusted 23.6% Operating Op. Expense leverage 0.7% G
Slide 22: Adjusted income statement: Q2 FY 2020
Adjusted income statement: Q2 FY 2020 As Adjusted (1) Q2 FY 2020 % Growth % FXN Growth Revenues $4,253 1.4% 2.4% Gross Profit 2,325 0.2% 0.3% % of revenues 54.7% SSG&A 1,029 5.2% 4.3% % of revenues 24.2% R&D 246 (0.3%) (0.7%) % of revenues 5.8% Operating Income 1,051 6.0% 5.3% % of revenues 24.7% In
Slide 23: Macro view of COVID-19 impact and key considerations looking forward
Macro view of COVID-19 impact as of May 7th and key considerations looking forward • Remain in early stages of recovery and there is uncertainty in how general healthcare utilization will return Macro around the world, starting in China and continuing in Europe and the U.S. view of • Expect a weaker
Slide 24: Estimated COVID-19 impact on preliminary April revenue results
Estimated COVID-19 impact on preliminary April revenue results and key observations Elective Procedures Acute / Non-Acute Care Diagnostic Testing Research & Clinical Labs SURG (~$60M) MMS +~$70M IDS (DS & PAS) BIO (~$20M) PI (~$50M) MDS (~$50M); UCC (~$20M) (~$40M) Significant procedure Demand for i
Slide 25: Key takeaways
Key takeaways Uniquely positioned to respond to COVID-19 by leveraging our core capabilities across research, diagnosis and patient care Solid business performance in the second quarter reflects the strength and diversity of our portfolio Actively managing our business over the short-term as we navi
Slide 26: Advancing the world of health
<3 BD Advancing the world of health
Slide 27: FY 2020 Planned Product Launches
FY 2020 Planned Product Launches: Robust pipeline drives growth with innovative solutions Medical BD Provena™ Solo BD Provena™ Midline Catheter BD PowerMidline™ Catheter with BD InSyte™ Autoguard™ BD Intraosseous Vascular Access BD HealthSight™: MedSafety, Clinical BD Pyxis™ Logistics 1.2 BD Intevia
Slide 28: Impact: Delivering long-term value for all stakeholders
Impact: Delivering long-term value for all stakeholders Management Approach Q2 Update Develop and maintain a strong portfolio • BD HD Check System, the first and only rapid of leading products and solutions that hazardous drug detection system, launched a third address significant unmet clinical tes
Slide 29: Q2 FY 2020 & Q2 FY 2019 Adjustment Reconciliations
Q2 FY 2020 & Q2 FY 2019 Adjustment Reconciliations 29 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 30: YTD Q2 FY 2020 & YTD Q2 FY 2019 Adjustment Reconciliations
YTD Q2 FY 2020 & YTD Q2 FY 2019 Adjustment Reconciliations 30 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 31: Q2 FY 2020 Reconciliation of Reported Diluted EPS to Adjusted
Q2 FY 2020 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 31 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 32: YTD Q2 FY 2020 Reconciliation of Reported Diluted EPS to Adjusted
YTD Q2 FY 2020 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS 32 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 33: Q2 and YTD FY 2020 Reconciliation – FX Impact
Q2 and YTD FY 2020 Reconciliation – FX Impact Emerging, Developed Markets & China 33 BD and the BD Logo are trademarks of Becton, Dickinson and Company © 2020 BD and its subsidiaries All rights reserved
Slide 34: YTD Q2 FY 2020 Operating Cash Flow Reconciliation
YTD Q2 FY 2020 Operating Cash Flow Reconciliation (Unaudited, Amounts in billions) Reported Operating Cash Flow $ 1.2 Adjustments (excludes non-cash items) Restructuring costs 0.0 Transaction & Integration costs 0.1 Transaction gain/loss and product-related matters 0.3 Other 0.2 Tax impact related t
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