Becton, Dickinson and Company · NYSE:BDX

Becton, Dickinson and — Q1 FY2015 Earnings Presentation

30 slides from Becton, Dickinson and's earnings presentation, Feb 5, 2015

  1. Slide 1: First Quarter Results Fiscal Year 2015

    First Quarter Results Fiscal Year 2015 February 5, 2015

  2. Slide 2: Forward-Looking Statements

    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 first quarter earnings release and in our recent SEC filings. Non-GAAP Financial Measures

  3. Slide 3: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President 3

  4. Slide 4: Business Highlights

    Business Highlights  Pleased with our strong first quarter results  Good performance in both of our segments:  Core business is strong  Recent product launches continue to gain traction  Emerging markets and safety-engineered products remain key growth drivers  Closing of the CareFusion acquis

  5. Slide 5: FY 2015 Financial Highlights

    FY 2015 Financial Highlights First Quarter FXN $ Growth % Growth% Revenues $2,051 1.8% 5.3% EPS $1.20 (12.4%) (3.6%) Adjusted EPS $1.53 7.0% 15.4% 5

  6. Slide 6: Financial Update

    Financial Update Christopher Reidy Chief Financial Officer and Executive Vice President of Administration 6

  7. Slide 7: Q1 FY 2015 Highlights

    Q1 FY 2015 Highlights  Strong first quarter results, ahead of expectations  Results aided by a strong flu season  Tax rate improvements driven by R&D tax credit  Adjusted EPS exceeded expectations  Raising currency-neutral revenue and EPS guidance 7

  8. Slide 8: FY 2015 Revenues by Segment

    FY 2015 Revenues by Segment First Quarter $ Growth % FXN Growth% Total Revenues $2,051 1.8% 5.3% Medical 1,072 0.8% 4.2% Life Sciences 979 3.0% 6.5% Diagnostics 691 2.8% 6.5% Biosciences 288 3.3% 6.7% 8

  9. Slide 9: FY 2015 U.S. and International Revenues

    FY 2015 U.S. and International Revenues First Quarter Reported $ FXN Growth% Growth % U.S. $881 3.7% 3.7% Medical 457 3.6% 3.6% Life Sciences 424 3.9% 3.9% Diagnostics 331 3.2% 3.2% Biosciences 93 6.5% 6.5% International $1,170 0.4% 6.4% Medical 615 (1.2%) 4.6% Life Sciences 556 2.3% 8.5% Diagnostic

  10. Slide 10: FY 2015 Emerging Markets

    FY 2015 Emerging Markets  Emerging Markets financial highlights for FY 2015: FXN Growth % % of BD Revenues Q1 12.4% 26.5%  First quarter growth in key markets and platforms (FXN)  China 23.1%  Emerging Markets Safety 17.8% Note: Emerging markets include Eastern Europe, Middle East, Africa, Latin

  11. Slide 11: FY 2015 Safety Revenues

    FY 2015 Safety Revenues First Quarter Reported FXN $ Growth % Growth% Total Safety $573 2.9% 5.9% By Geography U.S. 309 (1.9%) (1.9%) International 265 9.2% 16.1% By Segment Medical 296 3.9% 6.6% Life Sciences* 278 2.0% 5.3% * Note: The safety values within Life Sciences are reflective of the Preana

  12. Slide 12: Adjusted Gross Margin Change Year-Over-Year

    Q1 FY 2015 Adjusted Gross Margin Change Year-Over-Year % of Revenue -0.5% $1,053 52% $1,063 0.7% 0.2% Performance 51% Continuous Improvement, Mix +40 bps 52.3% Pricing, Pension, Other 51.8% -20 bps 50% Q1 FY 2014 Currency Performance Q1 FY 2015 12

  13. Slide 13: Q1 FY 2015 Adjusted Income Statement

    Q1 FY 2015 Adjusted Income Statement Favorable (Unfavorable) Adjusted Q1 Adjusted Q1 FXN % FY 2015 FY 2014 $ Change % Change Change Revenues $2,051 $2,015 $37 1.8% 5.3% Gross Profit 1,063 1,053 10 1.0% 5.9% % of Revenues 51.8% 52.3% SSG&A 532 531 (1) (0.2%) (3.2%) % of Revenues 25.9% 26.4% R&D 129 1

  14. Slide 14: FY 2015 Guidance

    FY 2015 Guidance Growth % (FXN) Q1 FY 2015 November February Actual Guidance Guidance Total BD Revenues 5.3% 4.5% to 5% ~5% Medical 4.2% 4.5% to 5% ~4.5% to 5% Life Sciences 6.5% ~ 4.5% ~5% Diagnostics 6.5% ~4.0% to 4.5% ~5% Biosciences 6.7% ~4.5% to 5% ~4.5% to 5% Adjusted EPS 15.4% 8% to 9% 9% to

  15. Slide 15: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President 15

  16. Slide 16: New Program and Product Launch Updates: Medical

    New Program and Product Launch Updates: Medical Medical Program/Product Planned Launch Date New  Q1 FY 2015 FDA Clearance BD IntelliportTM Medication Management System  Q3 FY 2015 Launch  FY 2015 FDA Clearance BD Insulin Infusion Sets  FY 2016 Launch BD Simplist™ Prefilled Injectables  Heparin

  17. Slide 17: New Program and Product Launch Updates: Life Sciences

    New Program and Product Launch Updates: Life Sciences Diagnostic Systems Program/Product Planned Launch Date BD MAX™  Enteric Parasite  Launched EU / Q3 FY 2015 U.S.  GC/CT and GC/CT/Trich  Q3 FY 2015 EU  Extended Enteric Bacterial  1H FY 2016 EU  Enteric Viral  1H FY 2016 EU  Vaginitis / V

  18. Slide 18: Acquisition Timeline

    Acquisition Timeline CareFusion Acquisition Acquisition expected to close Announced in the first quarter 10/5/14 of 2015 Expiration of Financing CareFusion European the HSR Act shareholder vote Approval Waiting Period 18

  19. Slide 19: Key Takeaways

    Key Takeaways  Off to a very good start this fiscal year  Strategy delivering results:  Core business is strong  Recent product launches continue to gain traction  International growth remains robust  Closing of CareFusion acquisition expected in the first calendar quarter  Raising currency-n

  20. Slide 20: Q&A

    Q&A BD, BD Logo and all other trademarks are the property of Becton, Dickinson and Company. 20

  21. Slide 21: Revenue Growth Year-Over-Year

    Q1 FY 2015 Revenue Growth Year-Over-Year 1.8% 2,100 5.3% -3.5% -1.0% 2,000 $ in Millions 1,900 $2,015 $2,051 $1,922 1,800 1,700 Q1 FY 2014 Performance Currency Q1 FY 2015 21

  22. Slide 22: Q1 FY 2015 Adjustment Reconciliation

    Q1 FY 2015 Adjustment Reconciliation 22

  23. Slide 23: Reconciliation – FX Impact

    Q1 FY 2015 Reconciliation – FX Impact 23

  24. Slide 24: Reconciliation of Non-GAAP Financial Measures

    Q1 FY 2015 Reconciliation of Non-GAAP Financial Measures 24

  25. Slide 25: FY 2015 Reconciliation - FX Impact Emerging Markets and China

    FY 2015 Reconciliation - FX Impact Emerging Markets and China 25

  26. Slide 26: Revenues by Region: Old Segment Structure

    Q1 FY 2015 Revenues by Region: Old Segment Structure Note: The information provided is for comparison purposes only and does not represent the current two segment structure of the Company. 26

  27. Slide 27: Q1 FY 2014 Adjustment Reconciliation

    Q1 FY 2014 Adjustment Reconciliation 27

  28. Slide 28: FY 2014 Total Year Adjustment Reconciliation

    FY 2014 Total Year Adjustment Reconciliation 28

  29. Slide 29: FY 2014 Total Year Reconciliation – FX Impact

    FY 2014 Total Year Reconciliation – FX Impact (Unaudited; Amounts in millions, except per share data) Twelve Months Ended September 30, Adjusted Adjusted Adjusted Adjusted Foreign FY"Cash" for 2014 FY"Cash" for 2013 Growth Growth Currency FXN FXN EPS EPS $ % Translation Change Growth REVENUES $ 8,44

  30. Slide 30: FY 2015 Outlook Reconciliation

    FY 2015 Outlook Reconciliation 30

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