Agilent Technologies, Inc. · NYSE:A
Agilent Technologies — Q1 2015 Earnings Presentation
17 slides from Agilent Technologies's earnings presentation, 2015
Slide 1: Agilent Technologies Q1'15 Results Presentation
Agilent Technologies Q1’15 Results Presentation Page 1
Slide 2: Safe Harbor
Safe Harbor This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earning
Slide 3: Agilent Results Q1'15
Agilent Results Q1’15 Scale and leading technology across Analytical Laboratories and Clinical & Dx markets Q1’15 Financial Metrics Q1 Headlines • Strong Analytical Lab growth led by outstanding Cross Labs • Orders: $995M, +2% y/y (+6% core)(1) performance • Revenues: $1.03B, +2% y/y (+6% core)(1)(2
Slide 4: Life Sciences & Applied Markets Group (LSAG)
Life Sciences & Applied Markets Group (LSAG) Instrumentation and Informatics for Analytical Laboratories • Revenue growth broad based across most product lines and end-markets • Operating Margin for the quarter was 19.6%(1)(2) • Growth continues to be driven by new offerings: 7900 ICP-Q/MS 7010 GC-Q
Slide 5: Agilent Cross Lab Group (ACG)
Agilent Cross Lab Group (ACG) Analytical Laboratory Consumables and Services • Revenue growth strong across consumable supplies, columns, sample prep and services • Operating Margin in the quarter was 20.7%(1)(2) • Performance reflects the innovative products Agilent is bringing to market and the cu
Slide 6: Diagnostics and Genomics Group (DGG)
Diagnostics and Genomics Group (DGG) Pathology, Genomics, and Nucleic Acid Manufacturing • Operating Margin for the quarter was 0.5%(1)(2) • Strength in companion diagnostics offset by regulatory remediation expense and manufacturing issues resolved late in the quarter NGS Target • Growth highlights
Slide 7: Growth in a $44B Market – Q1'15 Results by End Market
Growth in a $44B Market – Q1’15 Results by End Market Growth across most markets led by performance in the Analytical Laboratory Analytical Laboratory End Markets Agilent Revenue by End Market (1) Q1’15 revenues: +3% y/y growth Pharma & Biotech: Up 6% on technology refresh, mid to small sized pharma
Slide 8: Profitable Growth: Aggressively Improving Operating Margins to 22% by FY17
Profitable Growth: Aggressively Improving Operating Margins to 22% by FY17(1) Improving margins 300 basis points over FY14 Drive annual operating margin incrementals over 30% on core(2) revenue growth of 5% or more • Leverage current R&D and sales channel Q1’15 TTM Adjusted Operating Margin Comparis
Slide 9: Agilent Profitable Growth Plan Recent Actions
Agilent Profitable Growth Plan Recent Actions Q1’15 Re-organization – streamlining and aligning to strategy • Launched multi-year “Agile Agilent” Program to increase efficiency and customer focus • Program Initiatives expected to lower costs by $50M in FY15 • New business group structure & portfolio
Slide 10: FY15 Agilent Capital Allocation
FY15 Agilent Capital Allocation • Forecast FY15 Operating Cash Flow of $550M • Invest in the Business • FY15 Capital expenditures of $120M • Return $500M in capital to shareholders in FY15 • ~$135M in Dividends • ~$365M in opportunistic Share repurchases • Maintain investment grade rating Page 10
Slide 11: Strategy to Win: Creating shareholder value
Agilent Strategy to Win Creating shareholder value Grow organically at the high end of the market • Focus on sustaining share growth within the core Analytical Lab • Continue to bring innovative new offerings to the market • Expand lab-wide services & consumables with a differentiated customer exper
Slide 12: Q2'15 and FY15 Guidance and Forward-looking Considerations
Q2’15 and FY15 Guidance and Forward-looking Considerations Based on January 31, 2015 Exchange Rates FY15 FY15 Guidance FY14 (2) Guidance at • Revenue: $4.06B - $4.12B; growth at mid-point 6.9% core, 1.0% Actual (1)(2) reported (1) mid-point • EPS: $1.67 - $1.73, assumed diluted share count 338M (1)(
Slide 13: Reconciliations and Appendix
Agilent Technologies Reconciliations and Appendix Page 13
Slide 14: Non-GAAP Income from Continuing Operations and Diluted EPS Reconciliations
AGILENT TECHNOLOGIES, INC. NON-GAAP INCOME FROM CONTINUING OPERATIONS AND DILUTED EPS RECONCILIATIONS (In millions, except per share amounts) (Unaudited) PRELIMINARY Three Months Ended January 31, Diluted Diluted 2015 EPS 2014 EPS GAAP Income from continuing operations $ 102 $ 0.30 $ 121 $ 0.36 Non-
Slide 15: Reconciliations of Revenue by Segment and Region Excluding Currency
AGILENT TECHNOLOGIES, INC. RECONCILIATIONS OF REVENUE BY SEGMENT AND REVENUE BY REGION EXCLUDING THE IMPACT OF CURRENCY ADJUSTMENTS (CORE) (in millions) (Unaudited) PRELIMINARY Year-over-Year Currency GAAP Adjustments (a) Currency-Adjusted Year-over-Year Year-over-Year Revenue by Segment Q1'15 Q1'14
Slide 16: Reconciliation of Income from Operations to Reportable Segment Income
AGILENT TECHNOLOGIES, INC. RECONCILIATION OF INCOME FROM OPERATIONS TO REPORTABLE SEGMENT INCOME FROM OPERATIONS AND OPERATING MARGINS (In millions, except margin data) (Unaudited) PRELIMINARY Operating Q1 2015 Margin % (a) Post separation, Agilent is providing Keysight certain IT and site services.
Slide 17: Innovation-driven growth by Agilent
Innovation-driven growth by Agilent Recent new Agilent offerings New in New in New in 2014 2014 2014 7890B-5977A GC-Q/MS 7010 GC-QQQ 7200 GC-Q/TOF 6560 LC-Q/TOF 6495 LC-QQQ AriaMx Real-Time PCR System New in New in New in 2014 2014 2014 8454 UV/Vis Cary 7000 UMS Cary 630 FTIR 4300 handheld FTIR 1290