Ge Healthcare Technologies Inc. · NASDAQ:GEHC
Ge Healthcare Technologies — Non-Deal Roadshow (December 2022)
34 slides from Ge Healthcare Technologies's roadshow presentation, Dec 11, 2022
Slide 1: Equity Roadshow Presentation
Equity Roadshow Presentation
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements. These forward-looking statements might be identified by words, and variations of words, such as “will,” “expect,” “may,” “would,” “could,” “plan,” “believe,” “anticipate,” “intend,” “estimate,” “potential,” “position,” “forecast,” “ta
Slide 3: Executive Summary
GE HealthCare Executive Summary
Slide 4: Clear Path to Accelerate Long-Term Shareholder Value
Clear Path to Accelerate Long-Term Shareholder Value Driving Growth Mid-single digit Organic Revenue Global Leader Executing on Increased Growth* in Attractive, Precision Care Focus and High-teens to 20% Growing Market Strategy Agility Adj. EBIT Margin* Strong Free Cash Flow* Generation Disciplined
Slide 5: Accelerating Innovation & Driving Growth
Accelerating Innovation & Driving Growth Organic Revenue Growth *-a) MSD% 3% 2019A - 2021A Strategic Pricing Commercial Execution Recently Launched Medium-term CAGR / Volume Products Target Commercial Execution, Innovation, and Industry Trends Driving Faster Growth Note: Illustrative graph, not to s
Slide 6: Optimizing Business Through Lean
Optimizing Business Through Lean Adjusted EBIT Margin* % of revenue High-teens to 20% 15% - 18% Historic Strategic Pricing Volume / Mix Productivity Medium-term 2019A - 2021A Target Clear Path to 3 to 5 Point Margin Expansion over Medium Term Note: Illustrative graph, not to scale © 2022, General El
Slide 7: Solid Cash Flow Generation and Financial Flexibility
Solid Cash Flow Generation and Financial Flexibility Free Cash Flow Conversion*-a) Free Cash Flow* Expected to Grow with Future Earnings 85%+ Commitment to Strong Investment Grade Ratings Maintain Strong Balance Sheet with Flexibility Strong Liquidity on Day 1 with $1.8B of Cash and $3.5B Credit Fac
Slide 8: GE HealthCare's Extensive Reach at a Glance
GE HealthCare’s Extensive Reach at a Glance Patients Annual R&D Revenue & product 1B+ served annually ~$1B investment $18B (~50% recurring-a)) spend Customer- AI-enabled device Installed 4M+ base 18.5K facing employees 42 authorizations in U.S., top of recent FDA list-b) Notes: Figures as of 2021 un
Slide 9: Established Leader in Large, Attractive Industries Across Healthcare
Established Leader in Large, Attractive Industries Across Healthcare Patient Care Pharmaceutical Imaging Ultrasound Solutions (PCS) Diagnostics (PDx) Industry Size ’21-a) $44B $12B $18B $10B Industry CAGR ’22 – ’25-a) 4-6% 4-7% 3-6% 4-5% Attractive End Markets Support Strong Growth Opportunities Acr
Slide 10: Executing on Clear Growth and Margin Drivers
Executing on Clear Growth and Margin Drivers Growth Drivers Margin Drivers • Enhanced commercial execution and capabilities • Higher-margin products from innovation • NPIs and commercial investments • Strategic pricing and mix, including software • Digital platform / AI and SaaS solutions • Lean-dri
Slide 11: GE HealthCare Investment Highlights
GE HealthCare Investment Highlights
Slide 12: Key Investment Highlights Driving Long Term Shareholder Value
Key Investment Highlights Driving Long Term Shareholder Value Established Leader and Trusted Partner in Large, Attractive Industries Across 1 Healthcare 2 Uniquely Positioned to Enable Precision Care Through Industry-Defining Innovation and Platform Capabilities Across Modalities Attractive Financia
Slide 13: Leader in Attractive, Growing Global Market
1 Leader in Attractive, Growing Global Market $84 billion ~$100 billion Total Addressable Market Estimated by 2025 in 2021 Global trends: Aging population Demand for insights & productivity Alternative sites of care Attractive Growth Markets with Potential to Increase TAM With Adjacencies And White
Slide 14: Uniquely Positioned to Enable Precision Care
2 Uniquely Positioned to Enable Precision Care EdisonTM Digital Health Platform Delivering Precision Care Enterprise Driving productivity Department and recurring revenue Device Sole Global MedTech Player With Equipment + Digital + Imaging Agents © 2022, General Electric Company. Proprietary informa
Slide 15: Our Approach to Delivering Precision Care
2 Our Approach to Delivering Precision Care 3 Smart Devices D Disease States Digital Platform Deliver Precision Care © 2022, General Electric Company. Proprietary information. All rights reserved. 15
Slide 16: New Product Introductions and Innovation Driving Growth
2 New Product Introductions and Innovation Driving Growth Introduced ~40 New Products at RSNA 2022 Indicates AI integration Omni-Legend (PET / CT) Portrait Revolution SIGNA™ Mobile-a) Voluson Apex (1.5 and 3T) Expert 22 OEC 3D CT Motion End-tidal Vscan Air Vivid Air Recon Control Injector DL Cardiol
Slide 17: Care Pathway Strategy Enables Precision Care
2 Care Pathway Strategy Enables Precision Care AI-powered CDS Suite MAC 2000 Cardiology Example CARESCAPE™ MyoSPECT Myoview RPM EdisonTM VividTM Allia™ IGS Revolution™ Apex We Play Across the Care Continuum Imaging Patient Care Indicates AI integration Solutions (PCS) Ultrasound Pharmaceutical © 202
Slide 18: Long-Term Value Creation Framework
3 Long-Term Value Creation Framework Driving Growth Disciplined MSD Organic Capital Allocation Revenue Growth* Strong FCF* Generation Strong financial position Shareholder Investment in Value Adj EBIT Margin Organic growth Creation Expansion Investment in High-teens to M&A 20%* * Non-GAAP Financial
Slide 19: Strong Recurring Revenue Base Driven by Our Services and PDx Businesses
3 Strong Recurring Revenue Base Driven by Our Services and PDx Businesses Recurring Revenue-a) Key Drivers Lifecycle Services Pharmaceutical Diagnostics ~50% Digital Solutions and Software c++ Consumables and Value-Added Offerings Recurring Non-Recurring Significant Recurring Revenue Driven by Our I
Slide 20: Accomplished Leadership Team with Strong Track Record
4 Accomplished Leadership Team with Strong Track Record PETER JAN ROLAND TOM KEVIN CATHERINE ROB YIHAO ELIE ARDUINI MAKELA ROTT WESTRICK O'NEILL ESTRAMPES WALTON ZHANG CHAILLOT CEO CEO, Imaging CEO, Ultrasound CEO, PCS CEO, PDx CEO, USCAN CEO, EMEA CEO, China CEO, Intercon’tl HELMUT BETTY FRANK MIKE
Slide 21: Unique Culture Supports Our Priorities for Growth
4 Unique Culture Supports Our Priorities for Growth Building Serve Our People, Patients, & Our Winning Customers Culture Lead with Lean Empower Entrepreneurial Spirit Deliver The Future of Healthcare Positioning our culture to enable success for Win Together our customers, patients and stakeholders
Slide 22: Business Segment Highlights
Business Segment Highlights
Slide 23: Our Business Segments by the Numbers
Our Business Segments by the Numbers Patient Care Pharmaceutical Imaging Ultrasound Solutions (PCS) Diagnostics (PDx) Revenue-a) $9.4B $3.2B $2.9B $2.0B Segment EBIT Margin-a) 13.1% 27.9% 12.2% 34.3% (a - For the year 2021 © 2022, General Electric Company. Proprietary information. All rights reserve
Slide 24: Imaging Overview
Patient Care Imaging Solutions (PCS) Imaging Overview Ultrasound Pharmaceutical Diagnostics (PDX) H I G H L I GHHI G THSL I G H T S S T R E N G T H S & S T R AT E G Y KEY PRODUCTS Computed Magnetic One of largest global Well-positioned to capitalize on future growth Tomography Resonance 400K insta
Slide 25: Ultrasound Overview
Patient Care Imaging Solutions (PCS) Ultrasound Overview Ultrasound Pharmaceutical Diagnostics (PDX) H I G H L I GHHI G THSL I G H T S S T R E N G T H S & S T R AT E G Y KEY PRODUCTS Radiology and Women’s Health Primary Care Ultrasound ~400K Large global GEHC defining the category for over 25 year
Slide 26: Patient Care Solutions (PCS) Overview
Patient Care Imaging Solutions (PCS) Patient Care Solutions (PCS) Overview Ultrasound Pharmaceutical Diagnostics (PDX) H I G H L I GHHI G THSL I G H T S S T R E N G T H S & S T R AT E G Y KEY PRODUCTS Patient Anesthesia and Large global Decades of clinical innovation & trusted Monitoring Respirato
Slide 27: Pharmaceutical Diagnostics (PDx) Overview
Patient Patient Care Imaging Imaging Solutions Solutions (PCS) (PCS) Pharmaceutical Diagnostics (PDx) Overview Ultrasound Ultrasound Pharmaceutical Pharmaceutical Diagnostics Diagnostics(PDX) (PDX) H I G H L I GHHI G THSL I G H T S S T R E N G T H S & S T R AT E G Y KEY PRODUCTS X-Ray/CT MR Annual P
Slide 28: Unique Value Proposition to Customers
Unique Value Proposition to Customers Deep customer relationships • Rely on GEHC for mission-critical capabilities Tailored regional execution • Multi-channel commercial model Technology leader • Long-standing delivery of industry-defining innovations Solutions partner • Full suite of digital, AI an
Slide 29: Financial Strategy
GE HealthCare Financial Strategy
Slide 30: Our Financial Strategy
Our Financial Strategy 2 3 Delivering Optimizing Sustainable, High- Business Quality Performance Through Lean Driving Growth Mid-single Digit Organic Revenue Growth* High-teens to 20% Aligning Accelerating Adj. EBIT Margin* Capital 1 Innovation & Driving Growth Strong Free Cash Flow* Generation Allo
Slide 31: Significant Value Creation Opportunity
Significant Value Creation Opportunity Visibility to Growth Expanding Adjusted EBIT Margin* Solid demand and backlog Strategic pricing Continued R&D investment Higher-margin products Commercial execution focus Product line simplification % Revenue Growth % Adj. EBIT Margin* High-teens MSD % *-a) to
Slide 32: Aligning Capital Allocation to Strategy
Aligning Capital Allocation to Strategy Investing in Organic Minority Investments & M&A Revenue Growth Strategic Collaborations ✓ Increasing R&D and Capex ✓ Disciplined Investments ✓ Augmented Product Pipeline ✓ Focus on Differentiation ✓ Adjacent Opportunities, ✓ Early Engagement with and Digital /
Slide 33: Outlook
Outlook 2022E-a) Organic Revenue • Continued order book growth MSD Growth* • Greater components access and increased fulfillment $2.7B+ • Proactive cost and price actions Adjusted EBIT* (equal to $2.6B+ on GE basis) • Volume growth and productivity $1.8 - 2.0B • Inventory build for ramp in demand FC
Slide 34: Driving the Future of Healthcare
Driving the Future of Healthcare Global leader in precision care • Unparalleled brand, scale, customer relationships and capabilities Outstanding portfolio of innovative products and solutions • Breaking new ground across care pathways, devices and digital solutions Driving growth and margin expansi