BDX Presentation at JPM 2016_FINAL

8/18/2019 BDX Presentation at JPM 2016_FINAL

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34th Annual J.P. MorganHealthcare Conference

Vincent A. ForlenzaChairman, Chief ExecutiveOfficer and President

January 13, 2016


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Forward-Looking Statements

• These materials include forward-looking statements and it’s possiblethat actual results could differ from our expectations. Factors thatcould cause such differences appear in our fourth quarter earningsrelease and in our recent SEC filings

Non-GAAP Financial Measures

• These materials also include Non-GAAP financial measures. Areconciliation to the comparable GAAP measures can be found in ourfourth quarter 2015 earnings release, the financial schedules attachedthereto 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.


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Topics for Discussion

Performance and Outlook

Advancing the World of Health

Accelerating Our Strategy

Growth Drivers and Value Creation


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BD is Well Positioned to Enable NewHealthcare Delivery Models

• 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

Continuum of Care

Home

Long-term Care,Skilled Nursing Facilities

Ambulatory Care Hospital

Primary Care Physician Physician

Retail PharmacyRetail Pharmacy

Home

Key Macro Healthcare Trends

Payers

Consumers

ValueBased

Reimburse-ment

Providers


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AcceleratingOur Strategy

DISCOVERY | DIAGNOSTICS | DELIVERY

SOLUTIONS ACROSS CARE CONTINUUM:

Serve as a leading medicaltechnology companydelivering world-class qualityand innovative healthcaresolutions

Improve lab efficiencyand patient outcomesfrom sample todiagnostic result

Optimize drugdelivery, medicationmanagement, andchronic diseasetreatment across thecare continuum

Enabled by Informatics

BDX

MedicalLife

Sciences

Advancing theWorld of Health


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#1 in med managementsolutions

Broad diabetes drug

delivery & diseasemanagement leader

Preferred partner intargeted self-injectionsolutions

A leader in infection

prevention solutions

A leading player inrespiratory and anesthesiasolutions

Medical Transformation: FromSupplies to Medical Management

#3/4 in devices for medmanagement

Leader in diabetes penneedles & syringes

Self-Injection Offering

Focused HAI effort

Disparate positions & OEMsin respiratory

From To


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BD Medical:Innovative Products and Solutions

Note: Fiscal year 2015 comparable revenues in billions. Totals may not add due to rounding.

MedicationManagement

Chronic DiseaseManagement &

Adherence

Addressing NeedsAcross the

Continuum of Care

Medication

ManagementSystems

Medication &

ProceduralSolutions

Diabetes

Care

Pharmaceutical

Systems

Respiratory

Solutions

$3.4B $2.1B $1.0B $0.9B $1.2B

$8.5B Revenue


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Leader in Medication Management

Healthcare IT/Electronic Medical Record

BD Smartworks & Knowledge Portal

Integrating Products, Informatics and Interoperability

Pharmogistics Cato & Phaseal Pyxis ES Alaris MedMined Smartworks

Procure Prepare Track & Dispense Administer & Document


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Life Sciences: Lab ProductivityFrom Discovery to Diagnosis

Legacy flow cytometryportfolio

Products supporting portfoliomicrobiology lab

Limited molecular menu andfragmented platforms

No presence in genomics

Advancing discovery withmulti parameter instrumentand reagent solutions

Reinventing microbiologywith automation andinformatics

Improving moleculardiagnostics throughautomation, differentiatedassays and standardization

Building leadership fromsample collection tosequence ready

Isolate1

E.coli (prelim)

Isolate2

E.facaelis (prelim)

From To


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BD Life Sciences: Improving LabEfficiency and Outcomes

Note: Fiscal year 2015 comparable revenues in billions. Totals may not add due to rounding.

$1.4B $1.3B $1.1B

$3.8B Revenue

Diagnostic

Systems

Preanalytical

Systems

Biosciences

AdvancingCellular

Research

Improving Lab Efficiencyand Patient Outcomes


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Improving Lab Efficiency andOutcomes

Increasing diagnostic efficiency andquality for better clinical outcomes

From the Clinical Laboratory to the Doctor’s Office

InfoStratus: Integrated Workflow Management and Data Analytics

Sample Processing Diagnostics and Laboratory TestingPost-

Analytics

BD KiestraAutomation

‘Smart’Imaging

BACTEC, PhoenixMicrobiology Solutions

BD MAXTM

Molecular Veritor

Point-of-CareRapid Result

Reporting


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AdministerDrug

Connecting Diagnosis andMedication Management

DIAGNOSIS DELIVERY

Infectious Disease / HAI’s Pharmacy& Prepare

DispenseMedicine

MonitorPatient

SmartWorks / Informatics

HIT Systems

Patient Floor

Pharmacy and Drug Compounding

Clinical Diagnostics Laboratory

Hospital

MedMinedInformatics

InfoStratus


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54%46%

International$5.7B+7%

EmergingMarkets

$2.0B+9%16%

China

$0.6B+15%5%

Leveraging Our InternationalInfrastructure

$B Revenue

FXN Growth

% of Sales

Diverse Geographic Revenue Base Opportunities Across the Globe

US$6.7B+4%

Note: All figures above reflect FY 2015 comparable actual results.

12.4B

U.S.• Outcome focus• IDN consolidation• Cross-selling

International• Registration• Safety Adoption

Emerging Markets• Geographic Expansion • Partnering• Raise care standards


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• New brand launch

• “Best of the Best” approach

• Key leadership in place

• Actively registering CFN

products in x-US markets,as anticipated

• Confidence in ability to deliverrevenue synergies in FY 2017

• Raised cost synergy target to

$325 to $350M by FY 2018• Incremental opportunitiesacross the organizationaltransformation, includingmanufacturing and functions

• Focus of the entire company

• Dedicated IntegrationManagement Office

• Completed commercialintegration for key accounts

Integration Off to a Great Start

Integration

Revenue SynergiesCost Synergies

Talent RetentionAnd Culture


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2.9%3.2%

4.2% 5.0%

4.7%1.1%

1.2%0.2% 0.6%

0%

1%

2%

3%

4%

5%

6%

FY2011 FY2012 FY2013 FY2014 FY2015 FY2016

R e v e n u e F X N

G r o w t h

Organic Growth Growth from Acquisitions and One-time Items

Accelerating Organic Revenues

5.4%

2.9%

4.5% to5.0%

4.3%

5.2% 5.3%

BD + CareFusion

(1) (2)

FY2011 – FY2014: FXN = Estimated foreign exchange-neutral currency growth; FY2015 – FY2016: Comparable FXN = Estimatedforeign 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.

BD 5.1%CFN 3.8%

BD ~5%CFN ~4%


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Margin Gains and Earnings GrowthMargin FXN Expansion

FY 2015 FY 2016

~100 bps

130 to 150 bps Key Drivers

• Transformation across functionsthrough: – Leveraging of shared service centers – Leaning infrastructure – End to end process improvement

• Rationalizing and automatingmanufacturing footprint

Earnings FXN Growth

FY 2015 FY 2016

21.2%

22 to 23%

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.


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Significant Operating Cash Flow

Adjusted Operating Cash Flow

$1.64 $1.69 $1.72$1.75

$2.10

~$2.60

FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016

$ in Billions

Note: FY 2016 reflects guidance.

• Reinvest for growth: R&D,Emerging Markets, Capital Spend

and M&A

• Fund a rising annual dividend

• Share repurchase programsuspended, except in the case of

divestitures

Capital Allocation Strategy


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Advancing the World of HeathNamed to Fortune Magazine’s first-ever Change the World list

Innovation: Advancing the quality, accessibility, safety and affordabilityof 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 chainwhile addressing climate change impacts

Empowerment: Advancing our purpose-driven culture

FORTUNEChange the World

2015OutstandingCorporate Innovator


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Closing Remarks

Accelerating Our StrategyProviding healthcare solutions across carecontinuum addressing global health needs

Growth in Medical and Life Sciences Strong Core, Organic Innovation,Strategic Acquisitions & Partnerships

Focused on Driving Sustainable ValueFor our customers, our end markets,and our stakeholders

DISCOVERY | DIAGNOSTICS | DELIVERY

SOLUTIONS ACROSS CARE CONTINUUM:


Strong Performance and OutlookAccelerating Organic Revenues,Continued Margin Expansion,High Quality of Earnings


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Thank you

BDX Presentation at JPM 2016_FINAL

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