NEW AGILENT THE PREMIER LABORATORY PARTNER FOR A BETTER WORLD New - PowerPoint PPT Presentation

NEW AGILENT THE PREMIER LABORATORY PARTNER FOR A BETTER WORLD

New Agilent Transformative solutions for global challenges Inspiring Discoveries For A Better World Safer World Better Resources Fighting Disease 1

New Agilent at a Glance Operating from a position of strength Leadership in steadily Attractive recurring Balanced across new growing end-markets revenue base and existing segments Most of the world’s $45B (1) 265,000 $4B TAM in 6 end-markets labs using Agilent solutions Revenue FY14 Balanced revenue mix (FY14) Geography Market domain Revenue type 11% Diagnostics Services, 33% Life Consumables & 51% 38% Sciences Informatics 34% 33% Applied Instruments 49% 51% Markets (1) Market size per Company estimates 2

A Seasoned Executive Team Leading a New Organization Life Sciences & Agilent Diagnostics & Applied Markets (LSAG) CrossLabs (ACG) Genomics (DGG) (1) (1) (1) $2.1B $1.3B $0.6B 18% (2) (2) 23% (2) 14% Solutions and software for Lab Enterprise Management solutions Solutions and tools for Clinical Analytical Laboratories for the Analytical and Clinical Lab and Clinical Research laboratories Order Fulfillment (OFS) Corporate Functions Jacob Mike Didier Patrick Mark Henrik Thaysen McMullen Hirsch Kaltenbach Doak Ancher- DGG CEO CFO LSAG ACG Jensen OFS (1) FY14 Revenue, (2) FY14 Operating Margin presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided 3

New Agilent Leadership is Moving Quickly Launched Agile Agilent A multi-year cost reduction and rationalization program Rationalized portfolio Successfully closing down NMR, Sale of XRD Restructured for growth and margin Largest organizational change in history of Agilent 4

New Agilent. Catalyzing value creation through market leadership In tune with our customer and our investors The The Expand Accelerate Analytical Clinical operating growth Lab Lab margin Lab Optimize Enterprise capital Mgmt. allocation Premium shareholder value Premium market positions 5

22% >85% 5% Operating margin Free cash flow Organic revenue growth (1) by 2017 to shareholders Accelerated Operating margin Optimal organic growth to historic highs capital allocation (1) Refers to FY16 onwards and excludes M&A and business exits and divestitures 6

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 The Analytical Lab Accelerated Organic Growth A 1 Win in Lab Enterprise Mgmt. B Operating Margin Expansion 2 Advance The Clinical Lab Optimal Capital Allocation C 3 Agile Agilent (1) Market sizes per Company estimates 7

How We Will Win Execution of key strategic priorities next 3 years FY17 FY16 Lead FY15 Leverage Transition Restructured operations Streamline R&D Drive commercial excellence SG&A Optimize infrastructure Integrate Dako businesses Agile Agilent Rationalized portfolio Continuous portfolio reviews Drive continuous cost improvements in supply chain LSAG Grow market share Groups ACG Leverage installed base DGG Lead select domains Operating Margin: 19% 21% 22% 8

LSAG Lead The Analytical Lab 9

LSAG Leads the Analytical Labs Through 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? Five Platform Divisions Serving 5 end-markets Mass Spectrometry One global Gas Phase sales force: Former Liquid Phase CAG and LS Spectroscopy & Vacuum Software & Informatics 10

LSAG Customers Leveraging technologies routinely across purposes Markets Customer Types Workflow & technique  Food processing companies Nestle Routine testing of food Monsanto  Academia and government safety and qualify Mars  Contract testing companies 7010 GC-QQQ  Petroleum companies Dow Routine monitoring of Shell  Chemical companies process efficiencies Exxon  Academia and government 7890 GC  Government and contractors ALS Water Supply  Utility companies Eurofins Contamination Testing  Academia and government SGS 7900 ICP-MS  Universities US Govt Disease Research –  Academia and government UC Davis Accurate Metabolite ID  Private institutions Harvard 6495 LC/QQQ  Pharma companies GSK QA/QC Analysis of Small  Biopharma companies Novartis Molecule Drugs Pfizer  Contract research organizations 1290 Infinity II LC 11

LSAG Outlook Continued strong growth trajectory Key growth initiatives Outlook Maximize oligo synthesis FY14 FY15-17 for DNA/RNA research revenue growth Expand Pharma & A&G New solutions for $2.1B 4-5% Biopharmaceutical analysis Grow FY14 Future Accelerate Mass spec and share in OM% (1) multi-omics market penetration OM direction LC-MS 18% Unlock full growth potential in China Introduce unified informatics solutions (w/ACG) (1) Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided 12

ACG Win in Lab Productivity 13

ACG Addresses a Growing Demand for Lab-wide Economic Value and Productivity Key challenges of our CrossLab customers Lab manager: Team Lead: Procurement: How do I reduce the How do I optimize How can we lower complexity of the the instrument overall cost of enterprise? performance? ownership across all our labs? The Productive Laboratory Enterprise Agilent’s Post- CONSUMABLES analytical installed base Growing trend Workflows covers a toward supplier significant SERVICES reduction and Pre- share of the integrated Analytical analytical world’s Workflows solutions Workflows 265,000+ labs SOFTWARE PLATFORM 14

The New ACG Our recognized and expanding higher tier offerings Lab type Core and adjacent offerings Integrated Benchmarking The routine workflows testing Inventory Supplies Management laboratory Business Education Relocation solutions Sample Prep Application The research support Maintenance & laboratory Repair Software Compliance Integrated Refurbished Productivity/ The instruments CrossLab Chemistries solution diagnostics solutions consulting laboratory Enterprise asset management 15

ACG Outlook Leveraging strong presence in the lab Key growth initiatives Outlook Introduce unified informatics FY14 FY15-17 solutions revenue growth Expand OpenLAB $1.3B 5-6% Expand informatics enabled enterprise solutions FY14 Future Evolve enterprise solutions to OM% (1) OM direction deliver greater outcomes Win with CrossLab 23% Expand portfolio breadth and increase solutions capability (1) Presented on a non-GAAP basis, reconciliations to closest GAAP equivalent provided 16

DGG Advance Clinical Diagnostics 17

DGG Leads Agilent’s Strategy in Clinical Research (CR) & Diagnostics (Dx) Key challenges of our CR & Dx customers Lab manager: Lab tech: Physician: How can I maximize How can we How can we better productivity and optimize work-flow treat maladies earlier reduce overall cost and obtain real-time and more per test? work order status? effectively? The research-clinical continuum Agilent Agilent solutions Genomics installed Routine Early products used Clinical Clinical (IVD) across 2,000 adopters Research by more than pathology 4,000 labs customers worldwide Anatomic Molecular Companion Pathology diagnostics diagnostics 18

Agilent’s Growth Opportunity Revolution in disease profiling and precision medicine Advanced Personalized Agilent clinical disease profiling treatment profiling opportunity Molecular Companion Anatomic diagnostics diagnostics pathology Accelerated Increased maturity of Big-pharma discovery of new molecular tests with investments in biomarker panels high clinical utility personalized medicine Molecular techniques Rising demand for fully integrated, breaking into routine clinical automated clinical work-flow integration Sample Test Automated Analytics & LIS & HIS Consumables Preparation reagents instruments Report outs Application / test validation Technical service / up-time 19

Two Focused Strategic Plays Cancer and Genetic Disorders Cancer Staining Agilent in unique position to lead > Pathology Lab Genomics Technologies + 10% $4.2B  Strong domain expertise and know-how $3.2B  Recognized diagnostics brand (Dako) Disease areas  Unique access to the pathology lab  Strong regulatory and clinical capability Fast-growing 2015 2018 and attractive Genetic Disorders Sizeable Agilent with strong competitive stance Cytogenetic / Molecular Lab to move the needle + 15%  Market leader in cytogenetic applications $0.9B Fit with Agilent  Recognized analytical brand (Agilent) $0.6B solutions and  Unique access to CR and CLIA labs technologies  Competitive, leading technology portfolio 2015 2018 20