Danaher Corporation · NYSE:DHR
Danaher — Q3 2023 Earnings Presentation
30 slides from Danaher's earnings presentation, Oct 24, 2023
Slide 1: Danaher Corporation Third Quarter 2023 Earnings Release
Danaher Corporation Third Quarter 2023 Earnings Release October 24, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward- looking" statements within the meaning of the federal securities laws. Th
Slide 3: Third Quarter 2023 Performance Summary
Third Quarter 2023 Performance Summary Adjusted Diluted Net Earnings Per Revenue Common Share -10.5% -21.1% Core -11.5% Acquisitions +0.5% FX +0.5% ($ millions) Throughout this presentation, with respect to revenue performance, for the definitions of "Acquisitions," “Core,” and “FX,” please refer to
Slide 4: Third Quarter 2023 Performance Summary: Free Cash Flow and Margin
Third Quarter 2023 Performance Summary Operating Profit Margin Free Cash Flow Performance -540 BPS -24.5% Core -470 bps Acquisitions -5 bps Other -65 bps ($ millions) Throughout this presentation when referred to in connection with operating profit margins, “Acquisitions” refers to the impact of bus
Slide 5: Third Quarter 2023: Biotechnology
Third Quarter 2023: Biotechnology Revenue Operating Profit Margin -19.0% -860 BPS Core -21.0% Core -865 bps Acquisitions +0.5% Acquisitions +5 bps FX +1.5% ($ millions) 5
Slide 6: Third Quarter 2023: Life Sciences
Third Quarter 2023: Life Sciences Revenue Operating Profit Margin -1.0% -220 BPS Core -2.5% Core -195 bps Acquisitions +1.0% Acquisitions -25 bps FX +0.5% ($ millions) 6
Slide 7: Third Quarter 2023: Diagnostics
Third Quarter 2023: Diagnostics Revenue Operating Profit Margin -16.0% -450 BPS Core -15.5% Core -445 bps FX -0.5% Acquisitions -5 bps ($ millions) 7
Slide 8: Guidance
Guidance 8
Slide 9: Q&A
Q&A 9
Slide 10: Y...
Y...
Slide 11: Reconciliation of GAAP to Non-GAAP Financial Measures
DANAHER CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES AND SUPPLEMENTAL FORWARD-LOOKING INFORMATION THREE AND NINE-MONTH PERIODS ENDED SEPTEMBER 29, 2023 AND SEPTEMBER 30, 2022
Slide 12: Table of Contents
TABLE OF CONTENTS Page 1 Sales (Decline) Growth by Segment, Core Sales (Decline) Growth by Segment and Base Business Core Sales (Decline) Growth by Segment 2 Forecasted Core Sales (Decline) Growth, Base Business Core Sales (Decline) Growth and Adjusted Operating Profit Margin 3 Segment Sales, Operat
Slide 13: Sales Growth by Segment, Core Sales Growth by Segment
DANAHER CORPORATION Sales (Decline) Growth by Segment, Core Sales (Decline) Growth by Segment and Base Business Core Sales (Decline) Growth by Segment % Change Three-Month Period Ended September 29, 2023 vs. Comparable 2022 Period Segments Environmental & Applied Total Company Biotechnology Life Sci
Slide 14: Forecasted Core Sales Growth and Base Business Core Sales Growth
DANAHER CORPORATION Forecasted Core Sales (Decline) Growth, Base Business Core Sales (Decline) Growth and Adjusted Operating Profit Margin The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency tra
Slide 15: Segment Sales, Operating Profit and Adjusted Operating Profit
DANAHER CORPORATION Segment Sales, Operating Profit and Adjusted Operating Profit ($ in millions) Three-Month Period Ended Nine-Month Period Ended September 29, 2023 September 30, 2022 September 29, 2023 September 30, 2022 Sales (GAAP) Biotechnology $ 1,664 $ 2,053 $ 5,413 $ 6,535 Life Sciences 1,70
Slide 16: Net Earnings, Operating Profit, Adjusted EBITDA: Three Months 2023
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended September 29, 2023 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net E
Slide 17: Net Earnings, Operating Profit, Adjusted EBITDA: Three Months 2022
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Three-Month Period Ended September 30, 2022 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net E
Slide 18: Net Earnings, Operating Profit, Adjusted EBITDA: Nine Months 2023
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Nine-Month Period Ended September 29, 2023 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Ea
Slide 19: Net Earnings, Operating Profit, Adjusted EBITDA: Nine Months 2022
DANAHER CORPORATION Net Earnings, Operating Profit, Adjusted EBITDA, Net Earnings Margin, Operating Profit Margin and Adjusted EBITDA Margin ($ in millions) Nine-Month Period Ended September 30, 2022 Environmental & Applied Biotechnology Life Sciences Diagnostics Solutions Other Total Company Net Ea
Slide 20: Other Non-GAAP Adjusted P&L Measures: Three Months 2023
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended September 29, 2023 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before earnings per common Sales Cost of sales margin
Slide 21: Other Non-GAAP Adjusted P&L Measures: Three Months 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Three-Month Period Ended September 30, 2022 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before earnings per common Sales Cost of sales margin
Slide 22: Other Non-GAAP Adjusted P&L Measures: Nine Months 2023
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended September 29, 2023 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before earnings per common Sales Cost of sales margin
Slide 23: Other Non-GAAP Adjusted P&L Measures: Nine Months 2022
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) Nine-Month Period Ended September 30, 2022 Net earnings for calculation Diluted net Earnings of diluted earnings per Gross profit Operating Operating before earnings per common Sales Cost of sales margin
Slide 24: Other Non-GAAP Adjusted P&L Measures: Footnotes
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) A Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above): Three-Month Period
Slide 25: Other Non-GAAP Adjusted P&L Measures: Footnotes (continued)
DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) compensation partially offset by changes in estimates associated with prior period uncertain tax positions. Discrete tax adjustments and other tax-related adjustments for the nine-month period ended Septe
Slide 26: Average and Adjusted Average Diluted Shares Outstanding
DANAHER CORPORATION Average and Adjusted Average Common Stock and Common Equivalent Diluted Shares Outstanding (shares in millions) Forecasted Three-Month Three-Month Period Ended Nine-Month Period Ended Period Ending Year Ending September 29, 2023 September 30, 2022 September 29, 2023 September 30,
Slide 27: Operating Profit Margins and Year-Over-Year Core Changes
DANAHER CORPORATION Operating Profit Margins and Year-Over-Year Core Operating Profit Margin Changes Segments Environmental & Applied Total Company Biotechnology Life Sciences Diagnostics Solutions Three-Month Period Ended September 30, 2022 Operating Profit Margins (GAAP) 26.30 % 33.70 % 20.50 % 28
Slide 28: Cash Flow, Free Cash Flow and Conversion Ratios
DANAHER CORPORATION Cash Flow, Free Cash Flow, Operating Cash Flow to Net Earnings Ratio and Free Cash Flow to Net Earnings Conversion Ratio ($ in millions) Three-Month Period Ended Year-over-Year Nine-Month Period Ended Year-over-Year September 29, 2023 September 30, 2022 Change September 29, 2023
Slide 29: Statement Regarding Non-GAAP Measures
DANAHER CORPORATION Statement Regarding Non-GAAP Measures Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. M
Slide 30: Statement Regarding Non-GAAP Measures (continued)
DANAHER CORPORATION Statement Regarding Non-GAAP Measures ◦ Other Adjustments: With respect to the other items excluded from Adjusted Diluted Net Earnings Per Common Share, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that