Becton, Dickinson and Company · NYSE:BDX

Becton, Dickinson and — Q1 FY2016 Earnings Presentation

26 slides from Becton, Dickinson and's earnings presentation, Feb 3, 2016

  1. Slide 1: First Quarter Results Fiscal Year 2016

    First Quarter Results Fiscal Year 2016 February 3, 2016 © 2016 BD. BD, the BD Logo and all other trademarks are property of Becton, Dickinson and Company.

  2. Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures

    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

  4. Slide 4: Q1 FY 2016 Business Highlights

    Q1 FY 2016 Business Highlights  Solid start to fiscal year 2016  Performance from both segments driving in-line revenues and earnings better than our expectations  First quarter margin improvement of +220 bps driven by operational efficiencies and cost synergies  Strategic review process continu

  5. Slide 5: Q1 FY 2016 Financial Highlights

    Q1 FY 2016 Financial Highlights First Quarter FXN Comparable As Adjusted $ Growth % Growth% FXN Growth% Revenues $2,992 45.9% 53.8% 1.8% EPS $1.96 28.1% 45.8% N/A  First quarter revenue growth of 1.8% FXN due to anticipated tough comparisons over prior year  Underlying margin improvement of +220 b

  6. Slide 6: Financial Update

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

  7. Slide 7: FY 2016 Adjusted Revenues by Segment

    FY 2016 Adjusted Revenues by Segment First Quarter FXN Comparable As Adjusted $ Growth % Growth% FXN Growth% Total $2,992 45.9% 53.8% 1.8% Revenues Medical 2,060 92.1% 101.4% 1.9% Life Sciences 933 (4.8%) 1.7% 1.7% 7

  8. Slide 8: FY 2016 Adjusted U.S. and International Revenues

    FY 2016 Adjusted U.S. and International Revenues First Quarter FXN Comparable As Adjusted $ Growth % Growth% FXN Growth% U.S. $1,697 92.6% 92.6% 1.5% Medical 1,272 178.1% 178.1% 1.9% Life Sciences 425 0.3% 0.3% 0.3% International $1,295 10.7% 24.6% 2.2% Medical 788 28.2% 44.4% 1.9% Life Sciences 508

  9. Slide 9: FY 2016 Developed & Emerging Markets

    FY 2016 Developed & Emerging Markets First Quarter As Adjusted Comparable % of BD $ FXN Growth % Revenues Developed Markets $2,527 1.7% 84% Emerging Markets $465 2.4% 16% China $163 4.5% 5% Note: Emerging markets include Eastern Europe, Middle East, Africa, Latin America, and certain countries withi

  10. Slide 10: FY 2016 Safety Revenues

    FY 2016 Safety Revenues First Quarter Comparable $ Growth % FXN Growth % FXN Growth % Total Safety $737 28.6% 35.3% 4.9% By Geography U.S. 447 44.9% 44.9% 3.8% International 290 9.5% 24.1% 6.5% By Segment Medical 467 57.9% 64.5% 5.4% Life Sciences 270 (2.7%) 4.1% 4.1%  Emerging Markets Safety grew

  11. Slide 11: Q1 FY 2016 Adjusted Income Statement

    Q1 FY 2016 Adjusted Income Statement Favorable (Unfavorable) Adjusted Q1 Adjusted Q1 FXN % $ Change % Change FY 2016 FY 2015 Change Revenues 53.8% $2,992 $2,051 $941 45.9% Comparable basis 1.8% Gross Profit 1,566 1,063 503 47.3% 57.9% % of Revenues 51.8% Comparable basis 52.3% 51.9% 3.6% SSG&A 745 5

  12. Slide 12: Q1 FY 2016 Adjusted Margin Changes Year-Over-Year

    Q1 FY 2016 Adjusted Margin Changes Year-Over-Year  Building off strong momentum of ~100 bps underlying (1) operating margin expansion in FY 2015 Gross Profit (% of sales) 1.3% (0.9%) 52.3% 51.8% 52.1% 51.9% Q1 2015 Q1 2015 Q1 2015 Performance Currency Q1 2016 BDX Legacy CFN Legacy Comparable BDX &

  13. Slide 13: Guidance

    Guidance Christopher Reidy Chief Financial Officer Executive Vice President of Administration

  14. Slide 14: FY 2016 Adjusted EPS Guidance

    FY 2016 Adjusted EPS Guidance $9.01 to $8.73 to $9.08 November $8.80 ~4% FXN Guidance ~22% FXN (~5%) $8.37 to (~4%) $8.44 February Update (~9%) 9% to ~3% 10% (~1%) $6.40 to $6.47 FY15 BDX BDX Tax Rate Pension Operational FY16 February FY16 Estimated FY16 Legacy Legacy Improvement Impact Accretion Ad

  15. Slide 15: FY 2016 Guidance

    FY 2016 Guidance As Adjusted November Guidance February Update Total Revenues – FXN 24.5% to 25.0% 24.5% to 25.0% Note: Guidance Total Revenues – Rptd 23.0% to 23.5% 20.0% to 20.5% updates denoted in bold. Medical Revenues – FXN 36.0% to 36.5% 36.0% to 36.5% Comparable Organic 4.5% to 5.0% 4.5% to 5

  16. Slide 16: Executive Overview

    Executive Overview Vincent A. Forlenza Chairman, CEO and President

  17. Slide 17: Q1 FY2016 Business Update: Growth and Strategic Initiatives

    Q1 FY2016 Business Update: Growth and Strategic Initiatives • Launched FACSSymphony (X-50) multi- New Product parameter instrument to early access customers Innovation • Launched FACSCelesta • BD MAX™ menu expansion continues in FY16 • Divested BD Simplist, Adding IV Solutions Strategic / • Strategi

  18. Slide 18: Q1 FY2016 Business Update: Operational Efficiencies

    Q1 FY2016 Business Update: Operational Efficiencies • G&A functional transformation continued in first quarter Operational • Harmonizing IT infrastructure Efficiencies • On-track to achieve FY16 cost synergies • Sustained lower oil prices benefitting raw material costs 170 to 190 bps Base plan effic

  19. Slide 19: Key Takeaways

    Key Takeaways  First quarter indicates a solid start to FY 2016  Medical and Life Sciences segments continued to perform well  Significant operational efficiencies evident in margin expansion  Maintain currency-neutral revenue guidance  Maintain adjusted EPS guidance range and raising currency-

  20. Slide 20: Advancing the World of Health

    Advancing the World of Health

  21. Slide 21: Q1 FY 2016 & Q1 FY 2015 Adjustment Reconciliations

    Q1 FY 2016 & Q1 FY 2015 Adjustment Reconciliations (Unaudited; Amounts in millions, except per share data) Three Months Ended December 31, 2015 Selling and Research and Other Diluted Administrative Development Acquisition- Operating Interest Income, Income Tax Earnings Revenues Gross Profit Expense

  22. Slide 22: Q1 FY 2016 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS

    Q1 FY 2016 Reconciliation of Reported Diluted EPS to Adjusted Diluted EPS (Unaudited) Three Months Ended December 31, Foreign Foreign Foreign Currency Currency Currency Neutral Neutral 2015 2014 Growth Translation Growth Growth % Growth % Reported Diluted Earnings per Share $ 1.06 $ 1.20 $ (0.14) $

  23. Slide 23: FY 2016 Reconciliation – FX Impact Emerging Markets and China

    FY 2016 Reconciliation – FX Impact Emerging Markets and China (Unaudited; Amounts in millions) Three Months Ended December 31, As Reported % Change 2015 2014 Reported FX Neutral FX Impact Total Developed Markets Revenue $ 2,527 $ 1,508 67.6 74.6 (7.0) Total Emerging Markets Revenue $ 465 $ 543 -14.2

  24. Slide 24: FY 2016 Comparable Margin Reconciliation

    FY 2016 Comparable Margin Reconciliation (Unaudited; Amounts in millions) Three Months Ended December 31, 2015 Selling and Research and Administrative Development Operating Revenues Gross Profit Expense Expense Income Adjusted $ for Three Months Ended December 31, 2015 A $ 2,992 $ 1,566 $ 745 $ 187

  25. Slide 25: FY 2016 Outlook Reconciliation

    FY 2016 Outlook Reconciliation FY2016 Outlook Revenues FX Impact FXN Basis Full Year FY2016 Estimated Growth on a Reported Basis 20.0% - 20.5% ~(4.5%) 24.5% - 25.0% Deferred Revenue Adjustment NM NM NM Adjusted Full Year FY2016 Estimated Growth 20.0% - 20.5% ~(4.5%) 24.5% - 25.0% Full Year Full Year

  26. Slide 26: FY 2016+ Product Launches

    FY 2016+ Product Launches Medical Segment Program / Product Planned Launch Date • BD Insulin Infusion Sets  FY 2016 • Pyxis Mini  FY 2016 Life Sciences Segment Program / Product Planned Launch Date • BD MAX™ – Extended Enteric Bacterial  FY 2016 EU / FY 2017 U.S. • BD MAX™ – Enteric Viral  FY 20

Becton, Dickinson and Company — Q1 FY2016 Earnings Presentation on 6ix