34 th Annual J.P. Morgan Healthcare Conference

Transcription

1 34 th Annual J.P. Morgan Healthcare Conference Vincent A. Forlenza Chairman, Chief Executive Officer and President January 13, 2016

2 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 fourth quarter earnings release and in our recent SEC filings Non-GAAP Financial Measures These materials also include Non-GAAP financial measures. A reconciliation to the comparable GAAP measures can be found in our fourth quarter 2015 earnings release, the financial schedules attached thereto and the related earnings call slides, all of which are posted on the Investors section of the BD.com website FXN = Estimated foreign exchange-neutral currency growth. $ = Dollars in millions except per share data. Comparable FXN = Estimated foreign exchange-neutral currency growth including BD and CareFusion in the current and prior year periods. Note: All figures on accompanying slides are rounded. Totals may not add due to rounding. Percentages are based on un-rounded figures. 2

3 Topics for Discussion Accelerating Our Strategy Growth Drivers and Value Creation Performance and Outlook Advancing the World of Health 3

4 Topics for Discussion Accelerating Our Strategy Growth Drivers and Value Creation Performance and Outlook Advancing the World of Health 4

5 BD is Well Positioned to Enable New Healthcare Delivery Models Key Macro Healthcare Trends Continuum of Care Payers Ambulatory Care Hospital Long-term Care, Skilled Nursing Facilities Providers Value Based Reimbursement Primary Care Physician Retail Pharmacy Physician Retail Pharmacy Consumers Home Home Healthcare industry consolidation: Across Payors, Providers and Consumers Shift in reimbursement models: From Fee for Service to Fee for Value Outcome focused: Population health management and consumer driven care Technology evolution continues: Digital Health 5

6 Accelerating Our Strategy SOLUTIONS ACROSS CARE CONTINUUM: DISCOVERY DIAGNOSTICS DELIVERY BDX Serve as a leading medical technology company delivering world-class quality and innovative healthcare solutions Optimize drug delivery, medication management, and chronic disease treatment across the care continuum Advancing the World of Health Improve lab efficiency and patient outcomes from sample to diagnostic result Medical Enabled by Informatics Life Sciences 6

7 Topics for Discussion Accelerating Our Strategy Growth Drivers and Value Creation Performance and Outlook Advancing the World of Health 7

8 Medical Transformation: From Supplies to Medical Management From #3/4 in devices for med management Leader in diabetes pen needles & syringes Self-Injection Offering Focused HAI effort Disparate positions & OEMs in respiratory To #1 in med management solutions Broad diabetes drug delivery & disease management leader Preferred partner in targeted self-injection solutions A leader in infection prevention solutions A leading player in respiratory and anesthesia solutions 8

9 BD Medical: Innovative Products and Solutions $8.5B Revenue $3.4B $2.1B $1.0B $0.9B $1.2B Medication & Procedural Solutions Medication Management Systems Diabetes Care Respiratory Solutions Pharmaceutical Systems Medication Management Chronic Disease Management & Adherence Addressing Needs Across the Continuum of Care Note: Fiscal year 2015 comparable revenues in billions. Totals may not add due to rounding. 9

10 Leader in Medication Management Healthcare IT/Electronic Medical Record BD Smartworks & Knowledge Portal Pharmogistics Cato & Phaseal Pyxis ES Alaris MedMined Smartworks Procure Prepare Track & Dispense Administer & Document Integrating Products, Informatics and Interoperability 10

11 Life Sciences: Lab Productivity From Discovery to Diagnosis From Legacy flow cytometry portfolio To Advancing discovery with multi parameter instrument and reagent solutions Products supporting portfolio microbiology lab Limited molecular menu and fragmented platforms No presence in genomics Isolate 1 E. coli (prelim) Isolate 2 E. facaelis (prelim) Reinventing microbiology with automation and informatics Improving molecular diagnostics through automation, differentiated assays and standardization Building leadership from sample collection to sequence ready 11

12 BD Life Sciences: Improving Lab Efficiency and Outcomes $3.8B Revenue $1.4B $1.3B $1.1B Preanalytical Systems Diagnostic Systems Biosciences Improving Lab Efficiency and Patient Outcomes Advancing Cellular Research Note: Fiscal year 2015 comparable revenues in billions. Totals may not add due to rounding. 12

13 Improving Lab Efficiency and Outcomes From the Clinical Laboratory to the Doctor s Office InfoStratus: Integrated Workflow Management and Data Analytics BD Kiestra Automation Smart Imaging BACTEC, Phoenix Microbiology Solutions BD MAX TM Molecular Veritor Point-of-Care Rapid Result Reporting Sample Processing Diagnostics and Laboratory Testing Post- Analytics Increasing diagnostic efficiency and quality for better clinical outcomes 13

14 Connecting Diagnosis and Medication Management Hospital MedMined Informatics HIT Systems SmartWorks / Informatics Patient Floor Pharmacy and Drug Compounding InfoStratus Clinical Diagnostics Laboratory Infectious Disease / HAI s Pharmacy & Prepare Dispense Medicine Administer Drug Monitor Patient DIAGNOSIS DELIVERY 14

15 Leveraging Our International Infrastructure Diverse Geographic Revenue Base Opportunities Across the Globe Emerging Markets $2.0B +9% 16% China $0.6B +15% 5% International $5.7B +7% $B Revenue FXN Growth 46% 12.4B 54% US $6.7B +4% U.S. Outcome focus IDN consolidation Cross-selling International Registration Safety Adoption Emerging Markets Geographic Expansion Partnering Raise care standards % of Sales Note: All figures above reflect FY 2015 comparable actual results. 15

16 Topics for Discussion Accelerating Our Strategy Growth Drivers and Value Creation Performance and Outlook Advancing the World of Health 16

17 Integration Off to a Great Start Integration Focus of the entire company Dedicated Integration Management Office Completed commercial integration for key accounts Talent Retention And Culture New brand launch Best of the Best approach Key leadership in place Cost Synergies Raised cost synergy target to $325 to $350M by FY 2018 Incremental opportunities across the organizational transformation, including manufacturing and functions Revenue Synergies Actively registering CFN products in x-us markets, as anticipated Confidence in ability to deliver revenue synergies in FY

18 Revenue FXN Growth Accelerating Organic Revenues BD + CareFusion 6% 5% 4.3% 5.4% 1.2% 5.2% 5.3% 0.2% 0.6% 4.5% to 5.0% 4% 3% 2% 1% 2.9% 2.9% 1.1% 3.2% 4.2% 5.0% 4.7% BD 5.1% CFN 3.8% BD ~5% CFN ~4% 0% FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 (1) (2) Organic Growth Growth from Acquisitions and One-time Items FY2011 FY2014: FXN = Estimated foreign exchange-neutral currency growth; FY2015 FY2016: Comparable FXN = Estimated foreign exchange-neutral currency growth including BD and CareFusion in current and prior year periods. (1) FY2011 adjusted for prior-year impact related to pandemic flu, U.S. stimulus spending and Japan supplemental spending. (2) FY2016 Guidance Estimate which excludes the impact from a distribution agreement change in the Respiratory Solutions business and non-annualized acquisitions. 18

19 Margin Gains and Earnings Growth ~100 bps FY 2015 FY 2016 Margin FXN Expansion 130 to 150 bps Key Drivers Transformation across functions through: Leveraging of shared service centers Leaning infrastructure End to end process improvement Rationalizing and automating manufacturing footprint Earnings FXN Growth 21.2% 22 to 23% FY 2015 FY 2016 Key Drivers Mid-single-digit revenue growth Margin expansion driven by base plans + synergies Efficient capital and tax structures Note: Margin expansion excludes currency and pension impacts. 19

20 Significant Operating Cash Flow Adjusted Operating Cash Flow Capital Allocation Strategy $ in Billions $1.64 $1.69 $1.72 $1.75 $2.10 ~$2.60 Reinvest for growth: R&D, Emerging Markets, Capital Spend and M&A Fund a rising annual dividend Share repurchase program suspended, except in the case of divestitures FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 Note: FY 2016 reflects guidance. 20

21 Advancing the World of Heath Named to Fortune Magazine s first-ever Change the World list Innovation: Advancing the quality, accessibility, safety and affordability of healthcare around the world Access: Improving Global Health through Public Private Partnerships, Product Development Partnerships, and Advocacy and Policy Alignment Efficiency: Reducing environmental footprint across our supply chain while addressing climate change impacts Empowerment: Advancing our purpose-driven culture FORTUNE Change the World 2015 Outstanding Corporate Innovator 21

22 SOLUTIONS ACROSS CARE CONTINUUM: Closing Remarks DISCOVERY DIAGNOSTICS DELIVERY Accelerating Our Strategy Providing healthcare solutions across care continuum addressing global health needs Growth in Medical and Life Sciences Strong Core, Organic Innovation, Strategic Acquisitions & Partnerships Strong Performance and Outlook Accelerating Organic Revenues, Continued Margin Expansion, High Quality of Earnings Focused on Driving Sustainable Value For our customers, our end markets, and our stakeholders Advancing the World of Health 22

23 Thank you