agilent technologies 17.آ  analyst & investor day 2016 1 agilent technologies institutional...

Download AGILENT TECHNOLOGIES 17.آ  Analyst & Investor Day 2016 1 AGILENT TECHNOLOGIES INSTITUTIONAL INVESTOR

If you can't read please download the document

Post on 06-Jul-2020

0 views

Category:

Documents

0 download

Embed Size (px)

TRANSCRIPT

  • Analyst & Investor Day 2016

    1

    AGILENT TECHNOLOGIES

    INSTITUTIONAL INVESTOR MEETINGS

    May & June 2017

  • Safe Harbor

    1

    This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, revenues, operating profit and operating margin, growth opportunities, customer service and innovation plans, new product introductions, financial condition and considerations, earnings, share repurchases, dividends, ability to access capital markets, the continued strengths and expected growth of the markets the company sells into, operations, operating earnings, and tax rates) that involve risks and uncertainties that could cause results of Agilent to differ materially from management’s current expectations. The words “anticipate,” “plan,” “estimate,” “expect,” “intend,” “will,” “should” “forecast” “project” and similar expressions, as they relate to the company, are intended to identify forward-looking statements.

    In addition, other risks that the company faces in running its operations include the ability to execute successfully through business cycles; the ability to successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross margin pressures; the risk that our strategic and cost-cutting initiatives will impair our ability to develop products and remain competitive and to operate effectively; the impact of geopolitical uncertainties on our markets and our ability to conduct business; the impact of currency exchange rates on our financial results; the ability to improve asset performance to adapt to changes in demand; the ability to successfully introduce new products at the right time, price and mix, and other risks detailed in the company's filings with the Securities and Exchange Commission, including our annual report on Form 10-Q for the quarter ended January 31, 2017.

    The company assumes no obligation to update the information in these presentations. These presentations and the Q&A that follows include non-GAAP measures. Non-GAAP measures exclude primarily the future impacts of acquisition and integration costs, pension curtailment gain, transformational initiatives, business exit costs and divestiture, and non-cash intangibles amortization. Also excluded are tax benefits that are not directly related to ongoing operations and which are either isolated or cannot be expected to occur again with any regularity or predictability. Most of these excluded amounts pertain to events that have not yet occurred and are not currently possible to estimate with a reasonable degree of accuracy. Accordingly, no reconciliation to GAAP amounts has been provided.

    .

  • Premium Portfolio, Global Scale, Positioned for Growth

    2

    37%

    29% 34%

    Life Sciences

    Diagnostics

    Applied Markets

    39%

    46%

    15%

    Instruments

    Services, Consumables & Informatics(5)

    44%

    56%

    Geographic Revenue Mix (2) Market domain (2) Revenue type (2)

    (1) Market size per Company estimates; (2) FY16 Revenue, (3) FY16 Operating Margin presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided . (4) Operating margin adjusted for reimbursement from Keysight for site services classified as “Other Income.” (5) Includes Services, Consumables, Informatics, Diagnostic and Genomics Products

    FY16 financial results

    Leadership in steadily growing end-markets

    Attractive recurring revenue base

    $50.1B 265,000 $4.2B (1)

    Most of the world’s

    20.7% labs using Agilent solutionsTAM in 6 end markets Revenue Operating Margin

    (3,4)

    Americas

    Europe

    Asia

  • Agilent CrossLab

    (ACG)

    Life Sciences & Applied Markets

    (LSAG)

    Diagnostics & Genomics

    (DGG)

    • Chromatography • Spectrometry • Spectroscopy • Informatics

    Lab Enterprise Management solutions for the Analytical and

    Clinical Lab

    Solutions and tools for Clinical and Clinical Research Laboratories

    $2.1B 21%

    $1.4B 22%

    $0.7B 16%

    Agilent Businesses

    3

    (1) (1) (1)

    (2) (2) (2)

    • Services • Consumables

    Instrumentation and software solutions for

    Analytical Laboratories

    • Pathology • Genomics Products • Nucleic Acid

    Solutions

    (1) FY16 Revenue, (2) FY16 Operating Margin presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided

  • Analyst & Investor Day 2016

    4

    Agilent Transformation Measures of Success

    Outgrow the market

    Expand operating margins

    Balanced approach to capital allocation

    Outgrow the Market

    Expand operating margins

    Balanced capital

    allocation

  • 19.6%

    20.7% 280 bps

    5

    Transformational Results Outgrowing the Market, Expanding Margins

    3.8% 4.7% 4.9%

    6.4% 5.9%

    0%

    1%

    2%

    3%

    4%

    5%

    6%

    7%

    FY12 FY13 FY14 FY15 FY16

    (1) Core revenue growth excludes impact of changes in currency translation, M&A, and exited NMR business Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided

    (2) Operating margin adjusted for reimbursement from Keysight for site services classified as “Other Income” Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided

    FY14 FY15 FY16

    Operating Margin expansion of 280 bps since 2014

    Completely offset $40M split dis- synergies in FY15

    (2)

    (2)

    Significant acceleration of core revenue growth(1) since 2014

  • 6

    Key FY16 Results Revenue Growth, Margin Expansion, Balanced Capital Allocation

    (1) Core revenue growth excludes impact of changes in currency translation, M&A, and exited NMR business (2) Operating margin adjusted for reimbursement from Keysight for site services classified as “Other Income” (3) Presented on a non-GAAP basis. reconciliations to closest GAAP equivalent provided

    • Revenue Growth Above the Market: up 5.9%(1)(3) on core basis • Expanded Operating Margin: up 110 bps to 20.7%(2)(3)

    • Adjusted EPS(3) of $1.98, up 14% • Capital Deployment:

    • Cash Dividends: $150M • Share Repurchases: $434M • Strategic Investments: $480M

    • Operating Cash Flow of $793M, returning 89% of Free Cash to Shareholders

  • 7

    FY17 Guidance As of May 22, 2017 based on April 28, 2017 exchange rates

    (1) Core revenue growth excludes impact of changes in currency translation, M&A, and exited NMR business (2) Operating margin adjusted for reimbursement from Keysight for site services classified as “Other Income” (3) Presented on a non-GAAP basis..

    • Revenue: $4.36B - $4.38B: growth at mid-point 5.0%(1)

    • Adjusted Operating Margin: 21.5%(2) at mid-point • EPS(3): $2.15- $2.21: assumed diluted share count 326M • Operating Cash Flow of $825M • Returns to Shareholders

    • $170M in dividends • Up to $430M in share repurchases,

    subject to market to market conditions

  • Environment Food Chemical &

    Energy Pharma Academia & Government

    Clinical & DiagnosticsThe

    $50B Opportunity $14B(1) $11B(1)$15B(1)

    8

    Agilent Growth Strategy Grow Share in Attractive Markets

    (1) Market sizes per Company estimates

    (1)

    $10B(1)

    Strategically Target Growth Markets

    Innovation-driven growth

    Emerging market expansion

    Complementary M&A

    Outgrow the Market

  • TAM LT market growth Market

    position

    Chemical & Energy

    Environment & Forensics

    Food

    Pharma

    Academia & Government

    Clinical & Diagnostics

    $4.1B

    $5.3B

    $4.4B

    $15.0B

    $10.6B

    $10.7B

    1-3%

    2-4%

    4-6%

    4-6%

    1-3%

    6-8%

    #1

    #2

    #2

    #2-3

    End-markets(2)

    9

    Strong Positions across all end-markets

    (1) % of FY16 Agilent Revenue (2) Market size, growth and position per Company estimates

    #2

    $2.3B

    $1.8B

    $1.6B

    $6.7B

    $4.1B

    $4.3B

    SAM

    23%

    12%

    11%

    30%

    9%

    15%

    % of Revenue(1)

    100% $50.1B $20.8B

    Outgrow the Market

  • Genomics and Diagnostics

    26%

    Analytical Lab Services &

    Consumables 14%

    Analytical Instrumentation

    & Informatics 60%

    10

    Growth through Innovation Allocating Investment to Highest Growth Opportunities

    Strengthening market leadership

    Capturing new services and solutions opportunities

    Agilent Infinity II LC System

    $324M/yr invested in

    R&D(1)

    Agilent AdvanceBio SEC Columns

    Agilent OneSeq Target EnrichmentDako Omnis

    Advanced Staining Solution

    Capturing new life sciences & diagnostics growth opportunities

    (1) FY16 R&D Expense presented on a non-GAAP basis

    Outgrow the Market

    Agilent Intuvo 9000 GC

    Agilent 8900 Triple-Quad

    ICP-MS

Recommended

View more >