AGILENT TECHNOLOGIES
Safe Harbor This presentation contains forward-looking statements (including, without limitation, information and future guidance on the company’s goals, priorities, revenues, demand, growth opportunities, customer service and innovation plans, new product introductions, financial condition, earnings, share repurchases, the company’s ability to pay 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-K for the year ended October 31, 2015. 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. Page 1
Agilent at Glance Leadership in steadily Attractive recurring FY15 financial growing end-markets revenue base results Most of the world’s $45B (1) 265,000 $4B 19.6% (3,4) TAM in 6 end markets labs using Agilent solutions Revenue Operating Margin Agilent Life Sciences & Diagnostics & CrossLabs (ACG) Applied Markets (LSAG) Genomics (DGG) $1.3B (2) $2.0B $0.7B (2) (2) 22% 19% (3) (3) 13% (3) Instruments and software for Services and Consumables Solutions and tools for Clinical Analytical Laboratories for the Analytical Lab and Clinical Research laboratories Market domain (2) Geographic Revenue Mix (2) Revenue type (2) Diagnostics 14% Services, 32% 55% Consumables & Life 37% Informatics (5) Sciences 35% 33% Europe Instruments 45% Applied 49% Asia Americas Markets (1) Market size per Company estimates; (2) FY15 Revenue, (3) FY15 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 2
2015 – A Transformational Year for Agilent Followed by a Strong Start to 2016 Delivering Results Launched Agile Agilent A multi-year cost reduction Highest core growth since 2011 and rationalization program, largest organizational change FY12 FY13 FY14 FY15 in Agilent’s history Core y/y revenue 3.8% 4.5% 4.9% 6.4% growth (1) Building new portfolio Successfully closing down NMR, Four consecutive quarters of strong sale of XRD, acquistion of Seahorse growth and increasing profitability Bioscience and Cartagenia (2) Agilent Quarterly Operating Margin Expansion 22% Launched One Agilent 21% Q1’16 New CEO 20% Cultural transformation to optimize 19% company’s capabilities for customers 18% 17% FY15 FY14 FY16 16% Q1 Q2 Q3 Q4 (1) Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided . Excludes impact of currency, M&A, and exit of NMR business. Operating margin adjusted for reimbursement from Keysight for site services classified as “Other Income.” (2) 3
FY15 Strategic Acquisitions for Growth Leaders in their application space expand Agilent capabilities Cartagenia Seahorse Bioscience Unique live cell analysis technology A leading provider of software and complements Agilent’s separations and services for clinical genetics and mass spec solutions, especially in molecular pathology labs. metabolomics and disease research in Academia and Pharma. Cartagenia solutions enable users to efficiently review structural and molecular Combination with LC/MS gives scientists variants, build robust variant assessment a more comprehensive, faster path to pipelines, and expedite report drafting. researching some of the world’s most challenging diseases. Cartagenia is a key enabling element of a complete Agilent NGS and aCGH workflow. 4
Agilent’s Winning Strategy The World’s Premier Laboratory Partner Chemical Academia & Clinical & The Environment Food Pharma & Energy Government Diagnostics $45B (1) Opportunity $13B (1) $22B (1) $10B (1) Premium value creation Premium market positions • • Lead Analytical Lab Above Market Growth • • Win in Lab Enterprise Mgmt. Operating Margin Expansion • • Advance Clinical Diagnostics Balanced Capital Allocation Agile Agilent (1) Market sizes per Company estimates 5
Above market growth strategy Drive the science and the economics of the lab Drive the science and Leverage analytical strengths economics of the lab to drive success in diagnostics Instruments Analytical lab solutions Analytical & Tools and lab enterprise services Lab Services & Consulting Analytical tools to transition Clinical discovery into diagnostics Research Consumables & Reagents Integrated workflows and Clinical reagents for routine diagnostics Lab Software & Informatics Chemical Academia & Clinical & Environment Food Pharma & Energy Government Diagnostics 6
A Leader in Corporate Citizenship Our Intent Recognition Corporate Governance, Agilent named to Global 100 Highest Standards Most Sustainable List in 2014 & 2015 of Integrity • Ranked #53 in what is regarded as the most transparent, quantitatively driven Outstanding corporate assessment. Role as an employer and • Agilent the only Life Sciences Corporate member of the community Tools company to be recognized . Citizenship Industry Leader and Gold Class Sustainability in our Sustainability Award, 2015 & 2016 products and operations • Recognized by RobecoSAM as the company within Life Sciences Tools that is best prepared to seize the opportunities Agilent strives to honor our obligations to and manage the risks deriving from society by being an economic, intellectual, economic, environmental and social social, and sustainability leader in developments. each nation and community in which we operate 7
LSAG Lead The Analytical Lab 8
LSAG Leads the Analytical Labs Breakthrough solutions delivered via One Global Go-to-Market Model Key challenges of our Analytical Lab customers Lab manager: Research Scientist: Procurement: How do I secure Which solution will Who provides the 100% uptime with best support our lowest cost-of- round-the-clock diverse discovery ownership with high operations? research needs? quality performance? Breakthrough Solutions Serving 5 end-markets Mass Spectrometry Gas Phase One global sales force Liquid Phase Spectroscopy & Vacuum Software & Informatics 9
LSAG Key Initiatives and FY15 Results Continued strong growth trajectory Key growth initiatives FY15 Results New solutions for Revenue: $2.0B Biopharmaceutical analysis Core Growth: 4% Expand Maximize oligo synthesis OM% (1) : 18.6% Pharma for DNA/RNA research & A&G Continued momentum from Drive growth of Seahorse solutions innovative new offerings: with extended reach & leverage • 1290 Infinity II LC System • 6470 LC/MS Triple-Quad Grow Accelerate Mass spec and • 6545 LC/MS Q-TOF share in multi-omics, applied and clinical • 5977B GC/MSD LC & LC- research market penetration MS Acquired Seahorse Introduce unified informatics OpenLAB Bioscience , a leader in cell solutions (w/ACG) metabolism and bioenergetics measurement Further unlock China growth (1) Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided 10
ACG Win in Lab Enterprise Management 11
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