Bio-Analytical Measurement Business Briefing

Transcription

1 Bio-Analytical Measurement Business Briefing 58 th Pittsburgh Conference on Analytical Chemistry and Applied Spectroscopy McCormick Place Chicago, Illinois February 26, 2007 Page 1

2 Safe-Harbor Statement These presentations contain forward-looking statements (including, without limitation, statements regarding the return of value to our shareholders (including statements regarding our share repurchase program and our convertible debentures), the creation of a pure play business model, completion of our recently announced portfolio changes, information on our goals, priorities, orders, revenues, demand, growth opportunities, operating performance, cost structure, growth of the markets we sell into, Q4 business reacceleration, return on invested capital, future acquisitions and operating margins) that involve risks and uncertainties that could cause results of Agilent to differ materially from management s current expectations. In addition, other risks that the company faces in running its operations include the ability to achieve our performance objectives while refocusing our businesses; the ability to execute successfully through business cycles while it continues to implement cost reductions; the ability to meet and achieve the benefits of its cost-reduction goals and otherwise successfully adapt its cost structures to continuing changes in business conditions; ongoing competitive, pricing and gross margin pressures; the risk that our 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 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-K for the year ended Oct. 31, 2004 and most recently filed Quarterly Report on Form 10-Q. The company assumes no obligation to update the information in these presentations. These presentations and the Q&A that follows may include non-gaap numbers. A presentation of the most directly comparable GAAP numbers and the reconciliations between the non-gaap and GAAP numbers can be found at under GAAP Reconciliations. Page 2

3 Agilent Technologies: Outgrowing the Market McCormick Place Chicago, Illinois Chris van Ingen President Bio-Analytical Measurement February 26, 2007 Page 3

4 Bio-Analytical Measurement Q107 Financial Performance $2,500 $2,000 $1,500 50% 40% 30% Financials: Orders: $433M, 14% growth Revenue: $455M, 22% growth Operating Margin: 19%, + 5pts ROIC: 36%, +9pts $1,000 20% Key Growth Drivers: $500 10% LC systems: LC/MS systems: 21% growth 108% growth $0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 0% Microarrays: 56% growth Revenue Operating Profit ROIC Sustained, Strong Financial Performance Page 4

5 Bio-Analytical Measurement Market-focused Portfolio Life Sciences Chemical Analysis Pharma, Biotech, CRO, CMO Academia & Government Diagnostics Dx Petrochemical QA/QC Environmental Testing Food Testing Forensics Testing Addressable Market: $14B Market Growth Rate: 7-9% Agilent Projected Growth: 12-15% Addressable Market: $ 6B Market Growth Rate: 5-7% Agilent Projected Growth: 7-9% Life Sciences Tools Spectroscopy Tools Separations Tools Consumables Services & Informatics Page 5

6 Bio-Analytical Measurement Key Growth Initiatives Core Business: 8% CAGR Systems After Market Growth Initiatives: >40% CAGR Life Sciences Informatics Refresh core platforms Expand automation capabilities Strengthen Asia market leadership Achieve market leadership in HPLC consumables Refresh and simplify core services portfolio Expand Lab-wide services portfolio Broaden array-based Genomics portfolio Expand LC/MS portfolio Enter Diagnostics market Agilent OL Regain market leadership in SW and Informatics LSCA: 12% CAGR Page 6

7 Bio-Analytical Measurement FY07 Expected New Products At : New GC & GC/MS: 7890A GC & 5975C GC/MSD Expanded LC/MS Portfolio: New HPLC Chip capability for Triple Quad & QTOF Expanded Lab-wide Services: Compliance portfolio spans LC & LC/MS, GC & GC/MS Expanded Applications: MS-based Metabolomics Solutions Later in the Year: March: Expanded Intelligent Services Portfolio April: mirna microarrays April: New ICP/MS Platform June: New LC/MS Systems at ASMS Page 7

8 Agilent Technologies: Next Generation GC and GC/MS McCormick Place Chicago, Illinois Shanya Kane Vice President & General Manager Gas Chromatography Systems February 26, 2007 Page 8

9 Core Business Initiatives Systems After-Market Refresh and expand core platforms New automation and informatics offerings Strengthen Asia market leadership Build and sustain leadership in HPLC & GC columns & consumables Refresh and simplify core services Expand Lab-wide services portfolio Page 9

10 Agilent Technology Innovations WW Leader in GC systems Installed Base: More than 200,000 and 50,000 GC/MS Systems Microprocessor Control Fused Silica Capillary Column Electronic Pressure Control 5890 GC Hyperbolic Gold Quad 6890 GC 597X MSD Inert Ion Source 1970 s 1980 s 1990 s 2000 s 5975A MSD 5840 GC 5880 GC 5970 MSD Page 10

11 Introducing: Next Generation of GC and GC/MS 7890A GC 5975C GC/MS Page 11

12 New Enabling GC and GC/MS Technologies Capillary Flow Technology Solve challenging application problems easily with simplified in-oven flow control Trace Ion Detection Better detection of trace level residues in complex matrices Lab Monitoring & Diagnostic Software Maximizes instrument uptime with real time monitoring and alert notification Page 12

13 Capillary Flow Technology Proprietary Agilent design Small profile for fast thermal response Photolith milling for low dead volume Fusion bonded to form single flow plate Projection welded connections Deactivated/inert internal surfaces Page 13

14 Capillary Flow Technology Capabilities Solvent Bypass Reduce detector maintenance Heart Cutting (Deans Switch) Finds trace levels in complex matrices Backflush Shorten cycle times, eliminate sample carryover, improves column usage & lower maintenance Detector Splitting QuickSwap Find peaks of interest in unknowns Shorten GC/MS downtime when changing columns Modulation (GCXGC) Extra dimension of separation to obtain more information about complex samples Page 14

15 Save >30% in Cycle Time per Analysis Current Method for Pesticides in Milk Extract Chromatographic Run 42 min Post-Run Bake-Out 33min Post-Run Cool-Down 4min Total Run Time: 79 minutes Same Method with New 7890 Productivity Features 27 minutes saved Chromatographic run 42 min Backflush 7 min Faster Cool- Down 3 min Total Run Time 52 minutes Page 15

16 Trace Ion Detection Proprietary GC/MS data collection algorithm Improves peak detection and filtering Reduces noise level Improved peak shape Improved spectral fidelity Better detection of trace level residues in complex matrices Without Trace Ion Detection With Trace Ion Detection S/N = 53 S/N = 92 Page 16

17 Sensitivity for Real Samples Trace Ion Detection and Deconvolution Reporting Software provide automated peak identification and reporting Without Trace Ion Detection Pesticide is not detected With Trace Ion Detection Pesticide is detected Trace Pesticides in Strawberries Page 17

18 Lab Monitor and Diagnostic Software Monitors instrument status, chromatographic quality and track supplies usage to flag problems before they happen NGA ANALYZER! SULFUR ANALYZER Lab at a Glance : a predictive monitor to give the scientist peace of mind Page 18

19 Most Comprehensive Analytical Platform Pharmaceutical, Metabolomics Opportunities: Drug packaging regulations Higher throughput Metabolomics Environmental & Food Testing Opportunities: China Water Pesticides and drugs in China, India & Japan EU Standards Petrochemical Opportunities: Alternative Fuels New refineries in India/China Recapitalization Forensics Opportunities: Doping control labs in China, India, Pakistan New drug testing protocols Page 19

20 Agilent LSCA Value Proposition We will help labs produce better results faster with: Products: Broad portfolio of reliable workflow solutions Advice: Optimize customer applications and lab operations Software: Easy to use, open systems to maximize lab productivity Services: Responsive support, highest uptime Our Measure is Your Success Page 20

21 Q&A Panel Chris van Ingen President, Bio-Analytical Measurement Shanya Kane Vice President and General Manager, GC Systems Lon Justice Vice President and General Manager, Worldwide Sales, Marketing and Support Mike McMullen Vice President and General Manager, Chemical Analysis Solutions Unit Nick Roelofs Vice President and General Manager, Life Sciences Solutions Unit May Van Vice President and General Manager, Services and Support Division Page 21