Agilent Technologies, Inc. (NYSE:A) Evercore ISI HealthCONx Conference 2023 November 29, 2023 10:50 AM ET Company Participants Mike McMullen - President and Chief Executive Officer Bob McMahon - Chief Financial Officer Conference Call Participants Vijay Kumar - Evercore ISI Vijay Kumar Thanks everyone for joining us this morning. I’m Vijay Kumar. I cover Life Science and MedTech here at Evercore. Pleasure to have with us, Agilent Technologies this morning. From the company we have CEO, Mike McMullen; CFO, B ...

Agilent Technologies Q4’23 Financial Results Overview Safe Harbor These presentations contain forward-looking statements (including, without limitation, information, and future guidance on the company’s goals, priorities, revenue, revenue growth, earnings per share, operating margin, operating cash flow, capital expenditures, capital allocation, growth opportunities, new products and solutions, customer service and innovation plans, financial condition and considerations, impact of acquisitions, share repur ...

Financial Data and Key Metrics Changes - Revenue for Q4 2023 was $1.69 billion, a decline of 9.7% on a core basis after a 17.5% increase in the same quarter last year [5][17] - Q4 earnings per share (EPS) was $1.38, down 10% year-over-year, but exceeded guidance [5][21] - Full-year revenue reached $6.83 billion, growing 1.5% on a core basis, with a four-year compound annual growth rate (CAGR) of 7% [13][21] Business Line Data and Key Metrics Changes - Life Sciences and Applied Markets Group (LSAG) revenue was $928 million, down 18% core, with significant declines in pharma capital expenditures [8][17] - Agilent CrossLab Group (ACG) posted revenue of $404 million, up 4% core, with growth across all end-markets except China [10] - Diagnostics and Genomics Group (DGG) revenue was $356 million, flat on a core basis, with strong performance in pathology and NASD businesses offset by challenges in genomics [11] Market Data and Key Metrics Changes - In China, revenue declined 31% year-on-year, aligning with expectations after a 44% growth in Q4 last year [6][20] - The pharma market declined 14%, with biopharma performing better than small molecules [7][17] - The environmental and forensics market declined 3%, while the Americas region experienced strong growth driven by PFAS testing [19] Company Strategy and Development Direction - The company anticipates a slow but steady recovery in 2024, with initial guidance expecting revenue growth [14][26] - Agilent is focused on cost savings of approximately $175 million to adjust to market conditions, including portfolio optimization and reductions in discretionary spending [25] - The company remains committed to long-term growth, emphasizing investments in R&D tools and PFAS testing capacity [15][38] Management's Comments on Operating Environment and Future Outlook - Management noted signs of stabilization in the market, with a book-to-bill ratio of 1 for the company and greater than 1 for LSAG instruments [5][26] - The management expressed confidence in the long-term growth prospects of the Chinese market despite current challenges [7][56] - The company expects modest growth in the Americas and Europe, while anticipating continued pressure in the LSAG instruments segment [26] Other Important Information - Agilent's operating cash flow for Q4 was $516 million, with a free cash flow of $1.5 billion for the year, an increase of 44% [22][23] - The company announced a 5% increase in its quarterly dividend, continuing a trend of annual increases since 2012 [23] Q&A Session Summary Question: Comments on book-to-bill ratios and Q1 guidance - Management indicated that the book-to-bill ratio for LSAG instruments was similar when including and excluding China, and they are taking a prudent approach to Q1 guidance [31][32] Question: Expectations for NASD in China for fiscal '24 - The company expects a mid-single-digit decline for China and low to mid-single-digit growth for NASD [34] Question: Insights on the pharma market and order visibility - Management noted that the pharma market remains elongated in terms of deal closure, with expectations for low single-digit growth in the upcoming year [60][63] Question: Pricing trends and expectations for next year - The company expects to see roughly 2 percentage points of price growth in the upcoming year, which is above historical levels [51][52] Question: Structural issues in the Chinese market - Management does not foresee structural issues in the Chinese market for life science tools, expecting it to return to growth in the long term [54][56]

Revenue Performance - Net revenue for the three months ended July 31, 2023, was $1,672 million, a decrease of 3% compared to the same period last year, while net revenue for the nine months increased by 3% to $5,145 million [159]. - Revenue from products decreased by 6% to $1,222 million for the three months ended July 31, 2023, but increased by 1% to $3,819 million for the nine months [170]. - Services and other revenue increased by 9% to $450 million for the three months ended July 31, 2023, and by 8% to $1,326 million for the nine months [172]. - Total net revenue for the three months ended July 31, 2023, was $1,672 million, a decrease of 3% compared to $1,718 million for the same period last year [173]. - Life sciences and applied markets revenue decreased by 9% to $927 million for the three months ended July 31, 2023, while increasing by 1% to $2,928 million for the nine months ended July 31, 2023 [190]. - Diagnostics and genomics revenue increased by 3% to $349 million for the three months ended July 31, 2023, and by 2% to $1,053 million for the nine months ended July 31, 2023 [174]. - Agilent CrossLab revenue increased by 10% to $396 million for the three months ended July 31, 2023, and by 9% to $1,164 million for the nine months ended July 31, 2023 [175]. - Revenue for the nine months ended July 31, 2023, decreased 2% in the Americas, increased 3% in Europe, and increased 3% in Asia Pacific compared to the same period last year [192]. - Revenue growth in the chemicals and advanced materials market was driven by strength in spectroscopy, gas chromatography, liquid chromatography, and consumables businesses [194]. - Revenue for the nine months ended July 31, 2023, increased 6% in the Americas, decreased 1% in Europe, and decreased 10% in Asia Pacific compared to the same period last year [205]. Income and Expenses - Net income for the three months ended July 31, 2023, was $111 million, down from $329 million in the same period last year, while net income for the nine months was $765 million compared to $886 million [161]. - Income from operations decreased by $278 million or 68% to $133 million for the three months ended July 31, 2023, compared to $411 million for the same period last year [180]. - Total gross margin for the three months ended July 31, 2023, was 39.3%, a decrease of 15 percentage points from 54.7% in the same period last year [177]. - Operating margin for the three months ended July 31, 2023, decreased by 1 percentage point to 29.9%, while for the nine months it increased by 1 percentage point to 29.2% [199]. - Selling, general and administrative expenses decreased by 1% to $407 million for the three months ended July 31, 2023, while increasing by 2% to $1,241 million for the nine months ended July 31, 2023 [179]. - Research and development expenses increased by 2% to $118 million for the three months ended July 31, 2023, and by 6% to $367 million for the nine months ended July 31, 2023 [178]. - Research and development expenses for the three months ended July 31, 2023, decreased by 4%, while for the nine months they increased by 3% [197]. - Selling, general and administrative expenses decreased by 10% for the three months and by 1% for the nine months ended July 31, 2023 [198]. Cash Flow and Capital Management - Cash provided by operations for the nine months ended July 31, 2023, was $1,256 million, an increase from $864 million in the same period last year [161]. - The company repurchased 2.812 million shares for $335 million during the three months ended July 31, 2023, and 3.256 million shares for $396 million during the nine months [163]. - The 2023 repurchase program authorizes the purchase of up to $2.0 billion of common stock, with approximately $1.604 billion remaining as of July 31, 2023 [163]. - The company paid cash dividends of $0.675 per common share, totaling $199 million during the nine months ended July 31, 2023 [233]. - The company expects total capital expenditures for the current year to be approximately $300 million, primarily for the expansion of its nucleic acid solutions production facility [228]. - Cash and cash equivalents as of July 31, 2023, were $1,329 million, up from $1,053 million as of October 31, 2022 [222]. - Net cash inflow from operating activities for the nine months ended July 31, 2023, was $1,256 million, compared to $864 million for the same period in 2022 [225]. Market Conditions and Outlook - The company anticipates a challenging macroeconomic environment, particularly in China, but remains optimistic about long-term growth opportunities in key end markets [164]. - The company remains optimistic about long-term growth opportunities in life sciences and applied markets despite current macroeconomic challenges [195]. - The company experienced declines in life sciences and applied markets segments primarily due to weaker demand in China compared to the same period last year [159]. - The revenue decline in Asia Pacific was mainly driven by a significant revenue decline in China due to weakness in the overall economy [191]. - For the three months ended July 31, 2023, revenue declined significantly in the pharmaceutical market, primarily due to weakness in liquid chromatography and cell analysis businesses [193]. Foreign Exchange and Interest Rate Risks - Foreign currency movements negatively impacted revenue growth by 1 percentage point for the three months and 3 percentage points for the nine months ended July 31, 2023 [159]. - Approximately 52% of the company's revenue was generated in U.S. dollars during the nine months ended July 31, 2023, with a 3 percentage point decrease in revenue attributed to unfavorable foreign currency exchange rates [243]. - A hypothetical 10% adverse movement in foreign exchange rates would not have a material effect on the company's financial position as of July 31, 2023 [245]. - The company is exposed to interest rate risk due to the mismatch between fixed interest expense on loans and variable interest income from cash and short-term investments [245]. - A hypothetical 10% adverse movement in interest rates would result in an immaterial impact on the fair value of the company's fixed interest rate debt as of July 31, 2023 [246].

Financial Data and Key Metrics Changes - Q3 revenue was $1.67 billion, a decline of 2% on a core basis compared to a tough compare of 13% growth in Q3 of the previous year [5][12] - Operating margins improved to 29.3%, up 180 basis points year-over-year [5][15] - Quarterly earnings per share were $1.43, reflecting a 7% increase and exceeding expectations [5][15] - Full year core growth expectations revised down to around 1%, from previous guidance [5][18] Business Line Data and Key Metrics Changes - Pharma business declined by 8%, with the China market specifically down 30% [6][12] - Life Science and Applied Markets Group revenues were $927 million, a decline of 9% against a tough compare of 18% growth [7][12] - Agilent CrossLab Group revenues increased by 11% to $396 million, with growth across all regions and end markets [9][12] - Diagnostics and Genomics Group revenues were $349 million, up 3%, driven by high single-digit growth in pathology [9][12] Market Data and Key Metrics Changes - The Chemical Advanced Materials market declined by 3%, contrasting with a 22% increase last year [7][12] - The Americas and the rest of Asia performed better than expected, while Europe met expectations [14][42] - China underperformed significantly, with a 17% decline in Q3, primarily in pharma [19][40] Company Strategy and Development Direction - The company is focusing on cost efficiencies and increasing productivity to drive future growth [11][22] - Continued investment in innovation, with new product launches and workflows introduced at industry conferences [9][22] - The decision to shut down the Resolution Bioscience business reflects a disciplined approach to portfolio management [17][52] Management Comments on Operating Environment and Future Outlook - Management views current challenges in China as transitory, with confidence in long-term growth prospects [5][26] - The company does not anticipate any improvement in the China market for the remainder of the year [5][18] - Management remains optimistic about the long-term growth potential in pharma and applied markets despite short-term challenges [21][22] Other Important Information - A $291 million pretax charge was taken in Q3 related to the shutdown of the Resolution Bioscience business [16][17] - Free cash flow forecast for the year increased to $1.2 billion, reflecting strong cash flow generation [16][17] Q&A Session Summary Question: Insights on the China market and its cyclical versus structural nature - Management indicated that the current challenges in China are macroeconomic rather than competitive, with strong market shares maintained [25][26] Question: Durability of growth in the Agilent CrossLab Group - Management expects high single-digit to low double-digit growth, with Q3 margins being higher than typical due to variable pay true-ups [27][28] Question: Visibility into cyclical areas of the Chemical Advanced Materials segment - Management noted mixed performance, with some weakness in chemicals due to macroeconomic concerns, while advanced materials remain stable [32][34] Question: Phasing in the China market and exit rates - Management confirmed a decline in July, leading to a 17% drop for the quarter, with expectations of continued weakness in Q4 [40][41] Question: Pricing trends and competition in China - Management reported positive pricing contributions globally, though some pressure is anticipated in China due to deflationary trends [67][68] Question: Recovery signs in pharma spending - Management has not observed signs of recovery in pharma spending, with expectations of stabilization rather than growth [75][76]

Agilent Technologies Q3’23 Financial Results Overview Safe Harbor These presentations contain forward-looking statements (including, without limitation, information, and future guidance on the company’s goals, priorities, revenue, revenue growth, earnings per share, operating margin, operating cash flow, capital expenditures, capital allocation, growth opportunities, new products and solutions, customer service and innovation plans, financial condition and considerations, impact of acquisitions, share repur ...

Agilent Technologies, Inc. (NYSE:A) Jefferies Global Healthcare Conference June 7, 2023 9:00 AM ET Company Participants Mike McMullen - Chief Executive Officer Bob McMahon - Chief Financial Officer Conference Call Participants Brandon Couillard - Jefferies Brandon Couillard Welcome to the Jefferies 2023 New York Global Healthcare conference. Very happy to have Agilent with us at the conference today. Joining us, CEO, as most of you probably know, Mike McMullen; as well as CFO, Bob McMahon. Thanks, everybody ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended April 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For transition period from to Commission File Number: 001-15405 AGILENT TECHNOLOGIES, INC. (Exact Name of registrant as specified in its charter) Delaware 77-0518772 (State or other juris ...

Financial Data and Key Metrics Changes - Revenues for Q2 2023 were $1.72 billion, representing a 9.5% core growth year-over-year, exceeding expectations [4][12] - Operating margin increased to 25.6%, up 30 basis points from the previous year [5][16] - Earnings per share (EPS) rose to $1.27, reflecting a 12% increase year-over-year [5][16] Business Line Data and Key Metrics Changes - The Life Sciences and Applied Markets group generated revenues of $968 million, up 10% core, driven by backlog conversion and strong demand for LC and LCMS products, which grew 16% [6][12] - The Agilent CrossLab Group reported revenues of $387 million, a 13% core increase, primarily from service contracts [7][12] - The Diagnostics and Genomics Group's revenues were $362 million, up 3% core, with growth in pathology and NASD businesses, offset by weakness in genomics [8][12] Market Data and Key Metrics Changes - China experienced a remarkable 32% growth, significantly exceeding expectations, while Europe grew 5% and the Americas grew 3% [6][14] - The food market grew 21%, driven by strong performance in China [13] - The pharma market grew 6%, led by biopharma, while small molecule declined slightly [5][13] Company Strategy and Development Direction - The company is focusing on cost efficiencies and productivity to drive earnings growth in a constrained capital environment [10][11] - Agilent aims to continue investing in innovative solutions and customer support to enable future profitable growth [11][22] - The company remains confident in its long-term growth prospects despite current market challenges [21][22] Management's Comments on Operating Environment and Future Outlook - Management noted increased caution among customers, particularly in capital expenditures related to instruments, primarily affecting the pharma markets in the U.S. and China [9][10] - The company revised its core revenue growth forecast for the second half of the year to 3% to 4.5% and EPS growth to 7% to 8% [10][18] - Management expressed confidence in the company's ability to navigate challenges and maintain market share during downturns [21][80] Other Important Information - Operating cash flow was strong at $398 million, aided by deferred tax payments [17] - The company returned $151 million to shareholders through dividends and share repurchases [17] - Moody's upgraded Agilent's investment-grade rating to Baa1, reflecting the company's financial strength [17] Q&A Session Summary Question: What is the demand difference between mid to large pharma and smaller biotech? - Management indicated that small biotech is largely shut down due to cash conservation efforts, while medium to large pharma is showing increased conservatism in capital investments [25][26] Question: What are the trends in Europe regarding industrial demand? - Management noted cautiousness in the chemical sector in Europe but overall positive results [30] Question: What were the trends in April and how do they affect guidance? - Management observed increased caution from customers in April, leading to a downward revision in guidance for the second half [33][34] Question: What is the impact of the new COVID wave in China? - Management does not expect the new COVID wave to impact the second half guidance, as previous waves have been navigated successfully [42] Question: What is the outlook for the chemical and advanced materials market? - Management expects mid- to high single-digit growth in the chemical and advanced materials market, driven by fundamental drivers like semiconductors and batteries [53] Question: What is the status of the backlog and order trends? - Management reported a normalized backlog and noted that orders grew faster than revenues in Q1 but reversed in Q2 [59][60]

WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended January 31, 2023 OR Table of Contents ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. UNITED STATES SECURITIES AND EXCHANGE COMMISSION 5301 Stevens Creek Blvd., Santa Clara, California 95051 (Address of principal executive offices) Registrant's telephone number, including area code: (800) 227-9770 Sec ...