Becton, Dickinson And Company · NYSE:BDX
Becton, Dickinson And — Q3 2023 Earnings Presentation
49 slides from Becton, Dickinson And's earnings presentation, Aug 3, 2023
Slide 1: Q3 FY23 Earnings Presentation
Q3 FY23 Earnings Presentation August 3, 2023 Advancing the TM world of health
Slide 2: Caution Concerning Forward-Looking Statements and Non-GAAP 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
Basis of Presentation All dollar amounts presented are USD ($) in millions, unless otherwise indicated, except per share figures. Continuing Operations -On April 1, 2022, the Company completed the spin-off of its Diabetes Care business as a separate publicly traded company named Embecta Corp. The hi
Slide 4: Table of Contents
Executive Summary Table of Innovation Contents Financial Performance Guidance Appendix Q3 FY23 EARNINGS PRESENTATION AUGUST 3, 2023 4
Slide 5: Executive Summary
“Our teams are working unwaveringly to achieve key milestones that set us up for continued growth and consistent Executive performance. We are very pleased to deliver our #1 priority since launching BD2025 – achieving 510(k) clearance for Summary the updated BD Alaris™ Infusion System – allowing us
Slide 6: Strong performance is creating momentum behind our BD2025 strategy
Strong performance is creating momentum behind our BD2025 strategy Accelerating durable, profitable growth in attractive end-markets Q3 FY23 EARNINGS PRESENTATION AUGUST 3, 2023 6
Slide 7: Strong performance reflects BD2025 strategy in action
Strong performance reflects BD2025 strategy in action ✓ Updated BD Alaris™ Infusion System receives 510(k) clearance enabling customer upgrades and replacements and return to market ✓ BD2025 is consistently delivering multiple periods of broad-based strong financial performance and is enabling conti
Slide 8: Updated BD Alaris Infusion System Receives 510(k) Clearance
Updated BD Alaris™ Infusion System Receives 510(k) Clearance ✓ Only modular and most comprehensive infusion system on the U.S. market that includes: • Large volume pump • Auto-identification • Syringe pump • Dose error reduction software • Patient-controlled analgesia pump • EMR interoperability • R
Slide 9: ESG: Together We Advance - driving outcomes across four pillars of health
ESG: Together We Advance - driving outcomes across four pillars of health Issued 2022 ESG Report, providing details of our progress against our 2030+ ESG goals. Meaningful progress made to minimize our Named to the inaugural environmental footprint, increase diversity and U.S. News & World Report’s
Slide 10: Innovation
Innovation Q3 FY23 EARNINGS PRESENTATION AUGUST 3, 2023 10
Slide 11: Our innovation-driven growth strategy is on track
Our innovation-driven growth strategy is on track… Robust innovation pipeline fueling >100 expected product launches through FY25 BD Medical BD Interventional BD Prevue™ II Tracking System BD Trek™ Bone Biopsy • Launched in Q3 FY23 • Launched in Q3 FY23 • Features the BD Cue™ Needle Tracking System,
Slide 12: Super-cycle of innovation in Biosciences
…aided by a super-cycle of innovation in Biosciences BD Life Sciences BD FACSDiscover™ S8 Cell Sorter BD Rhapsody™ HT Xpress BD FACSDuet™ Premium: • Launched in Q3 FY23 • Launched in Q3 FY23 • Launched in Q3 FY23 • First installations complete with excellent • Enables greater access to fast-growing
Slide 13: Our innovation pipeline is progressing in support of BD2025 strategy
Our innovation pipeline is progressing in support of BD2025 strategy Continued strong achievement of critical milestones BD Medical BD Life Sciences BD Interventional Site-Rite™ 9 Ultrasound BD Onclarity™ HPV Assay TIPS - Venous Stent Graft Self-Collection • Submitted 510(k) in Q3 FY23 • Advancing s
Slide 14: 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 BD Alaris™ BD Medical BD Posiflush™ Infusion System China Midline BD Intellivault™ SafeScrub BD Pyxis™ ES1.7 / PowerMe™ EU Next Gen BD In
Slide 15: BD Medical: making medication delivery safer, simpler and smarter
BD Medical: making medication delivery safer, simpler and smarter Category Size WAMGR Key Products / Pipeline Vascular Access China BD Posiflush™ BD Intelliport™ Management (MDS) ~$9B ~4%+ Midline System SafeScrub PowerMe™ Medication Mgmt. BD Alaris™ U.S. and EU Infusion Pyxis™ Next Gen Solutions (M
Slide 16: BD Life Sciences: from sample collection and discovery to diagnostics
BD Life Sciences: from sample collection and discovery to diagnostics and beyond Category Size WAMGR Key Products / Pipeline Single Cell Analysis Additional (BDB) FACSDiscover™ FACSDuet™ RealBlue™ & ~$3B ~5.5% S8 Cell Sorter Premium RealYellow™ Dyes Microbiology BD Kiestra™ Synapsys™ Next Gen (IDS)
Slide 17: BD Interventional: transforming solutions for chronic disease management
BD Interventional: transforming solutions for chronic disease management Category Size WAMGR Key Products / Pipeline Peripheral Vascular Low Profile Disease (PI) Rotarex™ Small Arterial Next Gen DCB ~$5B ~6% Vessel StentGraft Oncology Multi-Modality (PI) BD Trek™ Vacuum ~$3B ~6% Bone Biopsy Assisted
Slide 18: Financial Performance
“We continue to deliver consistent, strong results and this quarter is Financial another reflection of our focused execution that gives us confidence in achieving our BD 2025 targets.” Performance Christopher DelOrefice BD EVP and CFO Q3 FY23 EARNINGS PRESENTATION AUGUST 3, 2023 18
Slide 19: Q3 FY23 revenue summary by segment and geography
Q3 FY23 revenue summary – by segment and geography Revenue by segment Revenue by geography Total BD United States BD Medical 57% $2,434M +12.2% FXN $4,878M +6.3% FXN Base revenues BD Life Sciences $1,226M $4,870M (5.0%) FXN +7.9% FXN Base revenues International +6.3% Organic FXN $1,218M 43% +0.2% FX
Slide 20: BD Medical: Execution of core strategy continues to drive strong growth
BD Medical: Execution of core strategy continues to drive strong growth Q3 FY23 BD Management Q3 Commentary MDS $1,086M • Performance reflects continued execution of our comprehensive Vascular +4.0% FXN Medication Access Management strategy which drove strong performance in BD Posiflush™ and our Cat
Slide 21: BD Life Sciences: Innovation enabling strong growth in key platforms
BD Life Sciences: Innovation enabling strong growth in key platforms with base results impacted (~400 bps) from prior year respiratory testing Q3 FY23 BD Management Q3 Commentary BDB • Base revenue growth was negatively impacted by higher Flu/COVID $368M combination testing volumes from prior year a
Slide 22: BD Interventional: Continued strong performance across the portfolio
BD Interventional: Continued strong performance across the portfolio expanding focus on chronic disease outcomes Q3 FY23 BD Management Q3 Commentary PI $481M • Continued market adoption of Phasix™ hernia resorbable scaffold driving +5.9% FXN double-digit growth worldwide in Advanced Repair and Recon
Slide 23: BD2025 driving strong organic revenue growth and double-digit adjusted EPS growth
BD2025 driving strong organic revenue growth and double-digit adjusted EPS growth Reported FXN Y/Y ∆ Y/Y ∆ P&L Highlights Q3 FY23 Q3 FY22 Revenues $4,878 $4,641 5.1% 6.3% Revenue: strong base growth of 7.9% FXN (6.3% organic FXN) driven by Base Revenue $4,870 $4,565 6.7% 7.9% execution across all th
Slide 24: Maintaining disciplined capital allocation policy
Maintaining disciplined capital allocation policy Purposeful and balanced investments help fuel our robust pipeline R&D / Capex ~6% ~60% ~$1B ~80% $ in billions Q3 YTD R&D target R&D spend Targeted annual Strategically (4) as a % of directed towards capex spend deployed on value R&D $0.9 sales Trans
Slide 25: Guidance
Guidance Q3 FY23 EARNINGS PRESENTATION AUGUST 3, 2023 25
Slide 26: FY23 Guidance Summary
FY23 Guidance Summary August 3, 2023 May 4, 2023 Comments Post-divestiture Pre-divestiture • Post-divestiture reflects impact from sale of Surgical Instrumentation Platform • Do not expect material incremental revenue contribution from Alaris for 6.5% to 7.0% remainder of FY23 Base revenue growth (F
Slide 27: Raising base revenue guidance driven by strong overall Q3 performance
Raising base revenue guidance driven by strong overall Q3 performance Increasing pre-divestiture base FXN revenue growth ~25 bps Pre-divestiture Base revenue growth: 6.8% to 7.1% Post-divestiture h ~25 bps 5.5% to 5.8% organic Base revenue growth: Base revenue growth: 6.6% to 6.9% 6.5% to 7.0% 5.5%
Slide 28: Maintained FY23 Adjusted EPS guidance
Maintained FY23 Adjusted EPS guidance ~50 bps increase in Adjusted EPS FXN growth Increasing implied base business EPS on the strength of Q3 performance and execution against margin goals while absorbing impact of divestiture, incremental FX and Alaris return to market costs ~7¢ Increase of ~50 bps
Slide 29: Consistent and strong revenue growth driving cumulative base business growth
Consistent and strong revenue growth driving cumulative base business growth expectation throughout the year Estimated adjusted FXN EPS impact from: FY23 adjusted EPS Surgical guidance Base business COVID-19 Instrumentation Adjusted FXN Estimated FX (vs. FY22 Adj. EPS of $11.35) performance only tes
Slide 30: Key Considerations
Key Considerations • Base organic revenue growth rate expected to be ~6% at mid-point of guidance Revenue • Do not expect any material incremental revenue contribution from Alaris • Based on current spot rate (EUR=1.10), FX expected to be a slight tailwind • Strong Q4 margin expansion expected to be
Slide 31: Appendix
Appendix Q3 FY23 EARNINGS PRESENTATION AUGUST 3, 2023 31
Slide 32: Glossary
Glossary B Billion HIV Human Immunodeficiency Virus PS Pharmaceutical Systems BDB Biosciences HPV Human Papillomavirus PTA Percutaneous Transluminal Angioplasty BPS Basis Points HT High Throughput R&D Research and Development Identification & Antibiotic Susceptibility CAGR Compound Annual Growth Rat
Slide 33: Supplemental Revenue Information
Supplemental Revenue Information Quarterly Reconciliation of Reported Revenue Change to Base Revenue Change For the Three Months Ended June 30, (Unaudited; $ in millions) A B C D=A-B E=A-B-C F=(A-B)/B G=(A-B-C)/B Reported % Change % Change 2023 2022 FX Impact FXN Change Change Reported FXN TOTAL REV
Slide 34: Supplemental Revenue Information - Organic Growth
Supplemental Revenue Information - Organic Growth Quarterly Reconciliation of Reported Revenue Change to Base Organic Revenue Change For the Three Months Ended June 30, (Unaudited; $ in millions) A B C D=A-B E=A-B-C F=(A-B)/B G=(A-B-C)/B Reported % Change % Change 2023 2022 FX Impact FXN Change Chan
Slide 35: Supplemental Revenue Information - Organic Growth
Supplemental Revenue Information - Organic Growth Quarterly Reconciliation of Reported Revenue Change to Base Organic Revenue Change For the Nine Months Ended June 30, (Unaudited; $ in millions) A B C D=A-B E=A-B-C F=(A-B)/B G=(A-B-C)/B Reported % Change % Change 2023 2022 FX Impact FXN Change Chang
Slide 36: Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Quarterly Reconciliation of Reported Diluted EPS from Continuing Operations to Adjusted Diluted EPS from Continuing Operations For the Three Months ended June 30, Foreign Foreign Foreign Currency Currency Currency Ne
Slide 37: Supplemental Non-GAAP Reconciliation 1 of 3
Supplemental Non-GAAP Reconciliation 1 of 3 Quarterly Reconciliation of Adjusted Change from Continuing Operations For the Three Months ended June 30, 2023 Notes for Non- Product, Income tax (A) GAAP Reported Purchase Integration Restructuring European litigation, and TSA / LSA benefit of Adjusted (
Slide 38: Supplemental Non-GAAP Reconciliation 2 of 3
Supplemental Non-GAAP Reconciliation 2 of 3 Quarterly Reconciliation of Adjusted Change from Continuing Operations For the Three Months ended June 30, 2022 Notes for Product, Income tax (B) Non-GAAP Reported Purchase Integration Restructuring Separation - European litigation, and TSA / LSA Impacts o
Slide 39: Supplemental Non-GAAP Reconciliation 3 of 3
Supplemental Non-GAAP Reconciliation 3 of 3 Quarterly Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations Change in Three Months Ended June 30, 2023 Compared With Three Months Ended June 30, 2022 (A) (B) (C) = (A) - (B) (D) = (C) / (B) (E) (F) =
Slide 40: Reported Diluted EPS to Adjusted Diluted EPS
Supplemental Non-GAAP Reconciliation – Reported Diluted EPS to Adjusted Diluted EPS Year to Date Reconciliation of Reported Diluted EPS from Continuing Operations to Adjusted Diluted EPS from Continuing Operations For the Nine Months ended June 30, Foreign Foreign Foreign Currency Currency Currency
Slide 41: Supplemental Non-GAAP Reconciliation 1 of 3
Supplemental Non-GAAP Reconciliation 1 of 3 Year to Date Reconciliation of Adjusted Change from Continuing Operations For the Nine Months ended June 30, 2023 Notes for Product, Income tax (A) Non-GAAP Purchase Integration Restructuring Separation - European litigation, and benefit of Adjusted Adjust
Slide 42: Supplemental Non-GAAP Reconciliation 2 of 3
Supplemental Non-GAAP Reconciliation 2 of 3 Year to Date Reconciliation of Adjusted Change from Continuing Operations For the Nine Months ended June 30, 2022 Notes for Non- Product, Income tax (B) GAAP Reported Purchase Integration Restructuring Separation - European litigation, and Impacts of debt
Slide 43: Supplemental Non-GAAP Reconciliation 3 of 3
Supplemental Non-GAAP Reconciliation 3 of 3 Year to Date Reconciliation of Adjusted Change and Adjusted Foreign Currency Neutral Change from Continuing Operations Change in Nine Months Ended June 30, 2023 Compared With Nine Months Ended June 30, 2022 (A) (B) (C) = (A) - (B) (D) = (C) / (B) (E) (F) =
Slide 44: Revenues by Business Segments and Units
Supplemental Revenue Information – Revenues by Business Segments and Units For the Three Months ended June 30, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2023 2022 FX Impact Reported FXN BD MEDICAL Medication Delivery Solutions $1,086 $1,061 ($17) 2.4% 4.0% Medication Management
Slide 45: Revenues by Geographic Regions
Supplemental Revenue Information– Revenues by Geographic Regions For the Three Months ended June 30, D=(A-B)/B E=(A-B-C)/B A B C % Change (Unaudited; $ in millions) 2023 2022 FX Impact Reported FXN United States $2,772 $2,643 $0 4.9% 4.9% International $2,106 $1,998 ($56) 5.4% 8.2% Developed Markets
Slide 46: Supplemental Non-GAAP Reconciliation – Net Leverage
Supplemental Non-GAAP Reconciliation – Net Leverage Reconciliation of Net Income from Continuing Operations to Non-GAAP Adjusted EBITDA from Continuing Operations – Unaudited; $ in millions For the Twelve Months ended June 30, 2023 Reported GAAP net income from continuing operations $1,664 Adjusted
Slide 47: FY2023 Outlook Reconciliation
FY2023 Outlook Reconciliation Full Year FY2022 Full Year FY2023 Outlook ($ in millions) FX Neutral % Change Reported Revenues BDX Reported Revenues from Continuing Operations $ 18,870 Less: COVID-19-only Diagnostic Testing Revenues 511 Base Business Revenues from Continuing Operations $ 18,358 FY202
Slide 48: FY2023 Outlook Reconciliation (Adjusted EPS)
Supplemental Non-GAAP Reconciliation – FY2023 Outlook Reconciliation Full Year FY2023 Outlook Full Year FY2022 from Continuing Operations Total Company Reported Diluted Earnings per Share $ 5.38 (1) Purchase accounting adjustments ($1.431 billion pre-tax) 4.98 (2) Integration costs ($68 million pre-
Slide 49: Investor Relations contact information
Investor Relations contact information Francesca DeMartino Adam Reiffe Nadia Goncalves SVP, Investor Relations Sr. Director, Investor Relations Sr. Director, Investor Relations investor.relations@bd.com Advancing the TM world of health 49
Becton, Dickinson and Company — Q3 2023 Earnings Presentation on 6ix