BD Financial Overview

Transcription

1 BD Financial Overview Creating value for the long term Christopher Reidy Executive Vice President, CFO and CAO

2 BD HAS A POWERFUL OPPORTUNITY TO ADVANCE THE WORLD OF HEALTH AND DELIVER SIGNIFICANT VALUE TO CUSTOMERS, PATIENTS AND SHAREHOLDERS AROUND THE WORLD.

3 Consistent and reliable performance Strategy and execution drove solid results 5 years of strong execution FY 2012 FY 2016 Revenue 5 % Earnings and 10 %

4 BD growth profile Key drivers from FY 2012 to FY 2016 Strong core portfolio 2X new products Drive for revenue growth 5 % ~$2B emerging markets ~$1B tuck-in M&A ~$12B CFN transaction +16% EPS FXN Growth CAGR Accelerating operating margin Double-digit earnings growth Continuous improvement Cost leverage Synergies through transformation Exited FY 2016 with ~200 bps of margin expansion Rising dividend +45 years of dividend increases

5 BD investing for growth BDX stock performance to follow FY 2012 BD FY 2012 performance BDX performance Analyst commentary Organic revenues 3.2% FXN growth Investing for emerging market growth and new product innovation EPS 4.7% FXN growth $96 $92 $88 $84 $80 $76 $72 $68 BDX S&P 500 HC Eq WE BELIEVE most investors know what they are going to get out of BD namely, top-line growth that will have puts and takes but has seemed to settle in the lowsingle-digit range. Graph reflects stock market performance from October 3, 2011, to September 28, 2012.

6 BD growth accelerated BDX stock performance followed FY 2013 BD FY 2013 performance BDX performance Analyst commentary Organic revenues 4.2% FXN growth +30 bps operating margin expansion EPS 11.9% FXN growth $106 $102 $98 $94 $90 $86 $82 $78 $74 BDX S&P 500 HC Eq BD management has done a commendable job positioning the Company for growth across multiple divisions. WE BELIEVE the core growth rate could accelerate. Graph reflects stock market performance from October 1, 2012, to September 30, 2013.

7 BD delivers stellar P&L performance BDX stock performance followed FY 2014 BD FY 2014 performance BDX performance Analyst commentary Organic revenues 5.0% FXN growth +50 bps operating margin expansion EPS 12.0% FXN growth $124 $118 $112 $106 $100 $94 BDX S&P 500 HC Eq BD has had fairly consistent results over the past several quarters and WE BELIEVE constant currency sales growth of 4.5% to 5.0% is sustainable. Graph reflects stock market performance from October 1, 2013, to September 30, 2014.

8 Unlocking value from CareFusion BDX stock performance followed FY 2015 BD FY 2015 performance BDX performance Analyst commentary Organic revenues 4.7% FXN growth +100 bps operating margin expansion EPS 21.2% FXN growth $150 $145 $140 $135 $130 $125 $120 $115 $110 BDX S&P 500 HC Eq WE BELIEVE the deal makes strategic and operational sense. We believe together, the two companies will be better positioned for success and sustained growth. Graph reflects stock market performance from October 1, 2014, to September 30, 2015.

9 Seamless execution in transforming BD BDX stock performance continued FY 2016 BD FY 2016 performance BDX performance Analyst commentary Organic revenues 4.3% FXN growth +200 bps operating margin expansion EPS 29.1% FXN growth $174 $168 $162 $156 $150 $144 $138 $132 $126 BDX S&P 500 HC Eq BD is doing exactly what we thought they were going to do: continue to execute well. WE BELIEVE BD still has plenty left in the tank to protect and drive further upside. Graph reflects stock market performance from October 1, 2015, to September 30, 2016.

10 Looking ahead Clear path forward from FY 2017 to FY 2019 Targeted P&L of the future FY 2017 FY 2019 Revenue 5 %+ Earnings and 10 %+

11 BD growth profile Key drivers from FY 2017 to FY 2019 Sustainable and consistent Strong core and adjacencies Best pipeline in our history 2/3 developed, 1/3 emerging Efficient capital and tax structures Increasing cash flow and strong balance sheet Drive for revenue growth Operating margin expansion Double-digit earnings growth 5 %+ Operational and business process excellence targeted to drive ~100 bps margin expansion per year Rising dividend Note: FY2017 to FY2019 growth profile assumes current macro and FX environment, and does not include the impact of prospective M&A. Nearly a half century of projected dividend increases by FY 2019

12 Formula for growth Consistent, sustainable revenue growth Strong leadership position and robust pipeline New adjacencies in high impact areas Geographic expansion and revenue synergies Pathway to 5%+ revenue growth BDX revenue growth formula FY 2017 to FY /3 Developed markets ~4% growth 1/3 Emerging markets high-singledigits growth

13 Operating margin expansion Profitability initiatives transforming margins +200 bps +175 to 225 bps +30 bps +50 bps +100 bps FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Note: Underlying margin expansion reflects annual basis points of operating margin expansion excluding the impact of foreign exchange and pension costs.

14 Operating margin expansion Profitability initiatives transforming margins +30 bps +50 bps +100 bps +200 bps +175 to 225 bps Operational excellence through best-in-class quality, global scale, automation and footprint harmonization FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 Business process excellence through centers of excellence, shared services and business process transformation Note: Underlying margin expansion reflects annual basis points of operating margin expansion excluding the impact of foreign exchange and pension costs.

15 Operational excellence 120-year-old DNA of world-class operations S Q D C Safety Quality Delivery Cost Customers

16 Operational excellence 120-year-old DNA of world-class operations S Q D C Safety Quality Delivery Cost Continuous improvement (CI) CI productivity through: Process optimization Plant automation Customers

17 Operational excellence 120-year-old DNA of world-class operations S Q D C Safety Quality Delivery Cost Continuous improvement (CI) CI productivity through: Process optimization Plant automation Network optimization Manufacturing and Supply Chain synergy initiatives well underway Customers 70% in process

18 Operational excellence 120-year-old DNA of world-class operations S Q D C Safety Quality Delivery Cost Continuous improvement (CI) CI productivity through: Process optimization Plant automation Network optimization Manufacturing and Supply Chain synergy initiatives well underway Customers 70% in process Investing in our plants Invest close to $700M annually in capacity, new technologies, quality and driving efficiencies

19 Operational excellence 120-year-old DNA of world-class operations S Q D C Safety Quality Delivery Cost Continuous improvement (CI) CI productivity through: Process optimization Plant automation Network optimization Manufacturing and Supply Chain synergy initiatives well underway Customers 70% in process Investing in our plants Invest close to $700M annually in capacity, new technologies, quality and driving efficiencies Procurement Leveraging scale of ~$6B supplier spend to generate savings and enable value

20 Operational excellence 120-year-old DNA of world-class operations S Q D C Safety Quality Delivery Cost Continuous improvement (CI) CI productivity through: Process optimization Plant automation Network optimization Manufacturing and Supply Chain synergy initiatives well underway 70% in process Customers Supply Chain efficiencies Global network of distribution centers Delivering tens of billions of units annually to ~200 countries Investing in our plants Invest close to $700M annually in capacity, new technologies, quality and driving efficiencies Procurement Leveraging scale of ~$6B supplier spend to generate savings and enable value

21 Operational excellence 120-year-old DNA of world-class operations S Q D C Safety Quality Delivery Cost Continuous improvement (CI) CI productivity through: Process optimization Plant automation Sustainability Sustainability efforts driving operational efficiencies #1 in green power usage in healthcare Network optimization Manufacturing and Supply Chain synergy initiatives well underway 70% in process Customers Supply Chain efficiencies Global network of distribution centers Delivering tens of billions of units annually to ~200 countries Investing in our plants Invest close to $700M annually in capacity, new technologies, quality and driving efficiencies Procurement Leveraging scale of ~$6B supplier spend to generate savings and enable value

22 Business process excellence Changing the way we do business IT Pulling the right transformation lever Customers Finance Global functions HR

23 Business Process Excellence

24 Significant cash flow generation ~$11B operating cash flow Capital expenditures Free cash flow ~$7B operating cash flow ~$2B ~$5B ~$3B ~$8B FY 2012 FY 2015 FY 2016 FY 2019

25 Cash flow flexibility and opportunity Capital expenditures Dividends Debt paydown Remaining cash ~$3B ~$11B ~$2.6B dividends operating cash flow ~$4B remaining ~$2.6B cash ~$1.4B FY 2016 FY 2019 ~$4B Capital allocation framework Invest in the business Increasing dividends On track for 3x gross leverage by March 2017 Evaluate M&A opportunities Return excess cash to shareholders Note: FY 2016 FY 2019 dividends based on current plan.

26 More than numbers We deliver value for customers and their patients BDX strategy and vision Global Health Financial outlook Advancing the world of health Addressing pressing global healthcare challenges Driving sustainable long-term growth and profitability Medical Life Sciences Commercial and innovation excellence Medication Management Solutions Solutions that enable discovery and diagnostics Customer-focused innovation and commercialization

27 More than numbers We deliver value for customers and their patients BDX Strategy and Vision Global Health Financial Outlook Advancing the world of health Addressing pressing global healthcare challenges Driving sustainable long-term growth and profitability Medical Life Sciences Commercial and innovation excellence Medication Management Solutions Solutions that enable discovery and diagnostics Customer-focused innovation and commercialization

28 BD HAS A POWERFUL OPPORTUNITY TO ADVANCE THE WORLD OF HEALTH AND DELIVER SIGNIFICANT VALUE TO CUSTOMERS, PATIENTS AND SHAREHOLDERS AROUND THE WORLD.