The forwarding may contain certain forward-looking statements (as defined under Federal securities laws) regarding the Company's performance, including future revenues, products and income, or events or developments that the Company expects to occur or anticipates occurring in the future. All such statements are based upon current expectations of the Company and involve a number of business risks and uncertainties. Actual results could vary materially from anticipated results described, implied or projected in any forward-looking statement. Factors that could cause actual results to vary materially from any forward- looking statement include, but are not limited to: competitive factors, pricing and market share pressures; uncertainties of litigation; the Company's ability to achieve sales and earnings forecasts, which are based on sales volume and product mix assumptions, to achieve its cost savings objectives, and to achieve anticipated synergies and other cost savings in connection with acquisitions; changes in regional, national or foreign economic conditions; increases in energy costs; fluctuations in costs and availability of raw materials and in the Company's ability to maintain favorable supplier arrangements and relationships; changes in interest or foreign currency exchange rates; delays in products introductions; and changes in health care or other governmental regulation, as well as other factors discussed in this press release and in the Company's filings with the Securities and Exchange Commission. We do not intend to update nay forward-looking statements. *** ================================================================================ Review of BD Biosciences ================================================================================ Deborah J. Neff President, BD Biosciences November 9, 2000 [LOGO] BD Indispensable to human health Business Definition ================================================================================ [ ] Our Business Provides Innovative Tools, Systems and Solutions for Supporting the Life Sciences and for Accelerating the Pace of Discovery [ ] We Leverage Technology Platforms Into High-Growth Areas With High-value Applications: - Drug discovery & development - Immune function monitoring - Functional genomics [LOGO] BD Indispensable to human health Customers Served ================================================================================ [ ] Academic & Government Institutions [ ] Pharma/Biotech Companies [ ] Clinical Laboratories & Blood Banks Customers Use Our Research and Clinical Diagnostic Systems As the Standards for Studying and Monitoring Patients Infected with HIV [LOGO] BD Indispensable to human health Businesses and Locations ================================================================================ [PICTURE] [LOGO] BD Indispensable to human health Immunocytometry Systems ================================================================================ - -------------------------------------------------------------------------------- Business: The leader in the detection, characterization and analysis of cell function - -------------------------------------------------------------------------------- Major Products: Flow cytometry and scanning laser instrumentation as well as related assay systems - -------------------------------------------------------------------------------- Markets Served: Cell Analysis/Immunology - -------------------------------------------------------------------------------- Competitors: Beckman Coulter, Cytomation, Dako - -------------------------------------------------------------------------------- [LOGO] BD Indispensable to human health PharMingen/Transduction Labs ================================================================================ - -------------------------------------------------------------------------------- Business: A leading supplier of high-quality, cutting-edge reagents and services for biomedical research - -------------------------------------------------------------------------------- Major Products: Monoclonal and polyclonal antibodies and related products for immunology, cell biology, signal transduction, and neurobiology - -------------------------------------------------------------------------------- Markets Served: Immunology, Cell Biology - -------------------------------------------------------------------------------- Competitors: Santa Cruz Bio, Caltag, Dako, R&D Systems - -------------------------------------------------------------------------------- [LOGO] BD Indispensable to human health Clontech ================================================================================ - -------------------------------------------------------------------------------- Business: A leader in molecular biology for the study of genes and how they affect body function - -------------------------------------------------------------------------------- Major Products: DNA and RNA arrays, in-vitro gene cloning, protein expression systems, fluorescent protein detection technologies - -------------------------------------------------------------------------------- Markets Served: Molecular Biology/Genomics, Proteomics - -------------------------------------------------------------------------------- Competitors: Amersham Pharmacia Biotech, Invitrogen, Stratagene - -------------------------------------------------------------------------------- [LOGO] BD Indispensable to human health Discovery Labware ================================================================================ Business: Engineered labware products that combine biologics and plastics - -------------------------------------------------------------------------------- Major Products: Products for tissue culture, fluid handling and high-throughput screening; cultureware with pre- applied biological coatings, toxicity assays for use in drug discovery - -------------------------------------------------------------------------------- Markets Served: Cell Biology/Proteomics, Genomics/Molecular Biology, Cell Analysis/Immunology - -------------------------------------------------------------------------------- Competitors: Corning, Greiner, Sybron, Nalgene/Nunc - -------------------------------------------------------------------------------- [LOGO] BD Indispensable to human health Revenue Breakdown by Business & Region (FY00) ================================================================================ By Business By Region ($ Millions) ($ Millions) $500 Million ------------ Pie Chart Pie Chart Discovery Labware - 26% North America - 54% Immunocytometry - 46% Europe, ME & - 28% Africa Clontech - 13% Japan - 13% PharMingen/Transduction - 15% Asia Pac. - 4% L.A. - 1% [LOGO] BD Indispensable to human health Business Dynamics ================================================================================ [ ] Worldwide Leadership Positions in Served Markets [ ] Integrated Systems: Instruments + Assays + Software + Consumables [ ] Over 8500 Products, With a Launch Rate of Approximately 2 Per Day [ ] Primarily Direct Distribution Channels Globally [ ] Nearly 200 PhDs Throughout Organization, with ~300 R&D Staff [ ] Strong Proprietary Technology: Patent Estate Includes ~275 Issued and ~50 Pending [ ] Strong Collaborations and Customer Relationships With Academia, Government, Pharma, and Medical Institutions [LOGO] BD Indispensable to human health The Convergence of Industry Drivers ================================================================================ [CHART] These drivers are accelerating the need for biotech tools that facilitate drug research and clinical applications. 1980s Monoclonal Antibodies First Recombinant Drugs 1990s Biotech Pharma Emerges Increased Access to Capital Pharma Consolidations Increased Public Funding Human Genome Project Biotech Valuations Internet - Enabled Information Explosion 2000s Revolution in Drug Discovery [LOGO] BD Indispensable to human health $3.3 Billion Served Market ================================================================================ PIE CHART Cell Biology/Proteomics - 30% $1,000 Million 15% projected growth rate Genomics/Molecular Biology - 26% $850 Million 17% projected growth rate Cell Analysis/Immunology - 44% $1,450 Million 13% projected growth rate [ ] BD Biosciences Participates in Each of These Segments [ ] Our Position in Each Area Can Be Expanded [LOGO] BD Indispensable to human health Key Market Drivers ================================================================================ [ ] Biomedical Science Is Experiencing the Broadest and Most Powerful Growth Cycle Ever - Public and private funding is dramatically accelerating the pace of research - Sequencing the human genome is just the beginning - Immunology is rapidly emerging as the foundation of many new therapeutic modalities - Revolution in drug discovery due to massively parallel and high- throughput approaches [LOGO] BD Indispensable to human health Technology Investments ================================================================================ [ ] Array Technology for Functional Genomics/Proteomics [ ] Cytometric Bead Arrays [ ] Advanced Immune Function Assays [ ] Applications of Novel Fluorescent Proteins [ ] Oxygen Sensing Plate Technology [ ] Next Generation Flow Cytometry [ ] Engineered Cell Lines [ ] High-Density Screening & Storage Platforms [LOGO] BD Indispensable to human health Technology Integration ================================================================================ Drug Discovery & Development Process Target ID Target Lead ID Patient Validation Optimiz. Monitoring BD Biosciences Capabilities [ ] Specialized Vessels for Cell Culture and Growth [ ] Reporter Systems to Tag the Samples for Analysis [ ] Assay Systems to Detect, Measure or Characterize [ ] Instrument Systems and Analysis Tools to Obtain Results [ ] Custom Services to Provide Unique Patient Monitoring Tools [LOGO] BD Indispensable to human health Technology Leverage - Toxicity Testing ================================================================================ Problem: [ ] Drug Companies Screen Hundreds of Thousands of Chemical and Natural Compounds for Their Potential as Drugs [ ] Eliminating Unpromising and Toxic Compounds During Early Phases of Discovery Saves Huge Amounts of Time and Money; Post-Discovery Development Can Be Focused and Streamlined [LOGO] BD Indispensable to human health Technology Leverage - Toxicity Testing ================================================================================ Solution: [ ] Plate-based Oxygen Biosensor Technology (OBT) Can Detect and Measure the Response of Cells to Drug Compounds; Toxic Drugs Destroy the Cell and Its Ability to Consume Oxygen [ ] Working With a Partner With Proprietary Hepatic Cell Lines and Combining With OBT, a Very High-Value Toxicity Screening Solution Can Be Created [CHART] Labware Phar Mingen Plates & Reagents O Sensing 2 Tox Assays Gentest Clontech P450 Expressing Immortalized Cell Lines Cells [LOGO] BD Indispensable to human health Adding Value to Drug Discovery ================================================================================ Angiogenesis Problem: [ ] Drug Companies Are Very Interested in Screening Drug Compounds That Either Promote Vascular Growth (to Enhance Perfusion of Tissues and Organs) or Retard Vascular Growth (to Starve Tumors and Reverse Progression of Cancer) [ ] Current Techniques Are Time-Consuming and Are Based on Animal Models [LOGO] BD Indispensable to human health Adding Value to Drug Discovery ================================================================================ Angiogenesis Solution: [ ] Discovery Labware Vessels and Biologics Are Used to Grow Micro-Vascular Structures in Multi-Well Plates [ ] Angiogenesis Enhancing or Inhibiting Compounds Can Then Be Applied [ ] Clontech Reporter Systems Determine How These Compounds Affect the Angiogenic Gene Expression [ ] Imaging Technology Is Used to View Cellular Response [ ] The Assays and Imaging Systems Can Be Automated for High-Throughput Screening, Saving Our Customers Time and Money [PICTURE] [LOGO] BD Indispensable to human health Technology Leverage - Vaccine Development ================================================================================ Problem: [ ] Autoimmune and Infectious Diseases (Including Cancer and AIDS) Present Increasing Challenges to the Global Society [ ] About One-Quarter of the Nearly 400 Biopharmaceutical Trials Underway Are for Vaccines [ ] The Cost of Bringing New Drug Products to Market Is ~$500 Million [ ] Evaluating the Efficacy of New Vaccines Requires Carefully Controlled Studies and Accurate Measurement of Cellular Immune Response [LOGO] BD Indispensable to human health Technology Leverage - Vaccine Development ================================================================================ Solution: BD Biosciences Brings to Market an Unparalleled Portfolio of Tools That Enable the Assessment of Cellular Immune Response to Vaccine Therapies. [ ] Cellular Analysis Using Flow Cytometry and Laser Scanning Technology [ ] Measurement of Antigen-Specific T-Cells for Vaccine Testing and Ongoing Patient Monitoring [ ] ELISA Technology Assays [ ] Dimerix Technology for Measuring Vaccine Response [PICTURE] [LOGO] BD Indispensable to human health Technology Leverage - Genomics ================================================================================ Problem: [ ] The Landmark Sequencing of the [PICTURE] Human Genome Is Generating Huge Amounts of Raw Data: - More than 100,000 genes [ ] Determining How Genes, Proteins and Cells Interact Is a Voluminous and Complex Challenge [ ] Deciphering Gene Function Is a Critical Next Step to Developing New Therapeutic Targets and Drug Candidates [LOGO] BD Indispensable to human health Solution: High-Throughput Expression Profiling ================================================================================ Solution: A Unique Family of What genes are expressed Where genes are expressed Molecular Biology Array Products GENES Tissue Samples [ ]Can Determine What Genes Are Expressed in Response to Stimuli PCR fragments RNA or cDNA [ ]Once Key Genes Are Found, Can or Polynucleotides Determine Which Tissues the Genes Are Expressed. [PICTURE] [PICTURE] Benefits: [ ]Most Relevant set of Genes [ ]Higher Accuracy, Sensitivity, Reproducibility, and Cost Effectiveness AtlasTM cDNA Array Multiple Tissue Array [ ]Proprietary Content Provides for AtlasTM Glass Microarray RNA Chip TM Competitive Advantage Disease Profiling Array [ ]Technology Platforms Create Opportunities for Partnership Multiple Genes Analysis Multiple samples
[LOGO] BD Indispensable to human health FY00 Performance and FY01 Outlook ================================================================================ [ ] Each Part of the Bioscience Business Experienced Continued Growth [ ] Overall Pro Forma Revenue Growth from FY99 to FY00 of 13% [ ] Growth Businesses (Excluding Base Plastics Business) Grew at 16% [ ] FY01 Projected Bioscience All-In Growth in the 13-15% Range [LOGO] BD Indispensable to human health Why We Are Confident of Our Growth Prospects ================================================================================ [ ] Major Markets Are Established and Growing - $3.3 Billion, With Projected Growth Rate of 15% [ ] Our Base Business Is Well-established - Instruments + Assays + Software + Consumables [ ] New Products Lever off Our Established Base - Technology platforms we own, with new value-added applications - Product technologies are tested/validated [ ] Strong Partnering Capabilities in Emerging Areas [LOGO] BD Indispensable to human health Our Formula for Success ================================================================================ [ ] Manage Biosciences as a High-Growth Business [ ] Maintain and Build Upon Leadership Positions in Essential Core Technologies [ ] Maintain Close Relationships with High-End Customers, Collaborators and Technology Sources [ ] Capitalize on BD Strengths in Direct Sales and Distribution [ ] Leverage Technology to Develop Integrated Customer Solutions [LOGO] BD Indispensable to human health [LOGO] BD Indispensable to human health The following are registered trademarks of BD: FACSCaliber, Vantage SE, Atlas Arrays, RNA Chip. ================================================================================ Review of BD Medical Systems Gary M. Cohen President, BD Medical Systems ================================================================================ [PHOTO] [PHOTO] [PHOTO] [PHOTO] NOVEMBER 9, 2000 [LOGO] BD Indispensable to human health Topics ================================================================================ [ ] Business Segment Description [ ] Environmental Factors [ ] Strategic Growth Plan [PHOTO] [ ] Financial Projections [LOGO] BD Indispensable to human health Medical Systems Business Units ================================================================================ - -------------------------------------------------------------------------------- Core Medical: [ ] Injection Syringes and Needles [ ] Infusion Therapy Devices [ ] Anesthesia Needles [ ] Surgical Blades and Scrubs [ ] Critical Care Devices - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Consumer Healthcare: [ ] Insulin Syringes and Pen Needles [ ] Elastic Support Products - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Pharmaceutical Systems: [ ] Prefillable Injection Devices - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Ophthalmic Systems: [ ] Ophthalmic Surgery Blades and Cannulas - -------------------------------------------------------------------------------- [LOGO] BD Indispensable to human health FY '00 Revenues - BD Medical Systems: $1.966 Billion ================================================================================ By Business Unit PIE CHART 59% - Core Medical: 26% - Consumer Healthcare: 13% - Pharmaceutical Systems: 3% - Ophthalmic Systems: By Geography PIE CHART 50% - US/Canada 28% - Europe/EMA 11% - Asia Pacific 11% - Latin America [LOGO] BD Indispensable to human health Environmental Factors Impacting BD Medical Systems ================================================================================
FACTOR: IMPACT: - -------------------------------------------------------------------------------------------------------------------------- Sharps Safety Legislation [ ] Full U.S. Conversion to Safety-engineered Designs and Regulation [ ] Europe Also to Convert Over Time - -------------------------------------------------------------------------------------------------------------------------- Global Immunization Standards [ ] Global Immunization Campaign Conversion to to Eliminate Device Reuse Auto-disable Designs - -------------------------------------------------------------------------------------------------------------------------- Integration of Drugs and Devices [ ] Conversion From Empty to Prefilled Devices - -------------------------------------------------------------------------------------------------------------------------- Intensified Treatment and Dramatic [ ] Increasing Utilization of Devices and Monitors WW Growth of Diabetes [ ] Advancing Technologies and Competition - -------------------------------------------------------------------------------------------------------------------------- Surgical Treatment for Vision [ ] Rapid Category Growth Correction [ ] Increasing Quality Standards for Devices and Systems - -------------------------------------------------------------------------------------------------------------------------- Growing Number of High-Value [ ] Increasing Need for Advanced, Pain-free Injectables Injection Devices - --------------------------------------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Strategic Growth Plan ================================================================================ Near Term: Revitalize Core Businesses with Higher Value Devices - -------------------------------------------------------------------------------- 1. Advanced Protection 2. Safe Immunization 3. Drug/Device Integration - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Long Term: Leverage Current Positions into New Markets and Technologies 4. Advanced Diabetes Care 5. Ophthalmic Surgery 6. Advanced Drug Delivery - -------------------------------------------------------------------------------- [LOGO] BD Indispensable to human health 1. Advanced Protection ================================================================================ U.S. Policy Status [ ] Sixteen States Have Passed Laws, 21 States Have Laws in Process [ ] OSHA Modified Bloodborne Pathogens Regulations in November 1999 [ ] Federal "Needlestick Act" Passed House of Representatives on October 3, and Senate on October 26 [ ] President Clinton Signed the Bill Into Law on November 6 % of Total Beds Passed 39.18% [PICTURE] In Process 47.50% Total 86.68% [LOGO] BD Indispensable to human health 1. Advanced Protection ================================================================================ U.S. Policy Status [ ] Sixteen States Have Passed Laws, 21 States Have Laws in Process [ ] OSHA Modified Bloodborne Pathogens Regulations in November 1999 [ ] Federal "Needlestick Act" Passed House of Representatives on October 3, and Senate on October 26 [ ] President Clinton Signed the Bill Into Law on November 6 [PICTURE] [LOGO] BD Indispensable to human health 1. Advanced Protection ================================================================================ Market Conversion Status (estimates) Estimated % Adoption at Fiscal Year End ---------------------------- Product Category 2000 2003 - --------------------------------------------------------------- Needleless IV Access 85% 95-100% Blood Collection Sets 40 90-100 IV Catheters 35 90-100 Blood Collection Tubes 25 80-90 Injection Syringes/Needles 15 90-100 Blood Collection Needles 10 90-100 - --------------------------------------------------------------- [LOGO] BD Indispensable to human health 1. Advanced Protection ================================================================================ BD Competitive Advantages [ ] Broadest Product Array [ ] Multiple Offerings in Each Category [ ] Best Quality/Performance in Customer Evaluations [ ] Experience and Resources for Capacity Scale-up [ ] Leverage of Existing Capital Infrastructure [ ] Leverage of Existing Go-to-Market Infrastructure [ ] Established Market Positions and Customer Relationships [LOGO] BD Indispensable to human health 1. Advanced Protection ================================================================================ U.S. Revenue Projections ($ MM)* (CHART) FY 2000 $185 Net of Conventional Device Sales $268 Total BD Safety-Engineered Devices FY 2001 Growth '00 - '01 $243 Net of Conventional Device Sales + 32% $369 Total BD Safety-Engineered Devices + 38% FY 2003 CAGR '00 - '03 $445 Net of Conventional Device Sales + 34% $696 Total BD Safety-Engineered Devices + 38% * Includes Preanalytical Solutions. [LOGO] BD Indispensable to human health 2. Safe Immunization ================================================================================ Policy [ ] NGO Directives Require Complete Conversion to "Auto-Disable" Injection Devices by 2004 Market Size/conversion [ ] Approximately 1.5 Billion Units, 20% Converted [ ] $50+ Million Growth Potential for BD Funding [ ] Neonatal Tetanus Elimination (100 Million+ Units) Funded by UNICEF/BD/Gates Foundation Partnership BD Product Technologies (PICTURES) [LOGO] BD Indispensable to human health 3. Drug/Device Integration ================================================================================ BD Pharmaceutical Systems [ ] $255 Million Global Business [ ] 14% CGR for Past 5 Years [PHOTO] [ ] Products: Hypak Glass Bulk, Hypak SCF, Monovial, Purefill, AccuSpray, Pens [PHOTO] [ ] Supplies Over 100 Pharmaceutical Companies [ ] Investing $100 Million in Capacity Expansion Over Next Three Years [ ] BD Also Prefilling Flush Syringes [LOGO] BD Indispensable to human health 4. Advanced Diabetes Care ================================================================================ [ ] Core Syringe and Pen Needle Businesses Continue to Grow, Due to Intensified Therapy [ ] BD Making Strategic Investment in Glucose Monitoring Technologies [PHOTO] [ ] Glucose Monitoring a $3.5 Billion Market, Growing 12% Annually [ ] BD Will Launch a Family of Products, Differentiated in Both Performance and Concept [LOGO] BD Indispensable to human health 5. Ophthalmic Surgery ================================================================================ [ ] Cataract Surgery Is Single Largest Surgical Procedure [ ] Refractive Surgery (Vision Correction) Now Emerging As Second Largest Procedure Category [ ] Procedures and Related Product Markets [PHOTO] to Double Over Next Five Years [ ] $100+ Million Growth Potential for BD [ ] BD Expanding From Current Base Into Refractive and Other Surgical Procedures Categories [LOGO] BD Indispensable to human health 6. Advanced Drug Delivery ================================================================================ [ ] Developed AccuSpray Nasal Delivery System [ ] Partnering With Aerogen for Pulmonary Delivery of Insulin [ ] Developing Microneedle Arrays Using MEMS Technology [ ] Development Agreements in Place With Leading Pharmaceutical Companies [LOGO] BD Indispensable to human health Product Demonstration ================================================================================ [ ] Advanced Protection Devices - Injection - Infusion Therapy [PHOTO] - Blood Collection [ ] Immunization Devices [ ] Prefills [LOGO] BD Indispensable to human health Medical Systems FY '01 Projections ================================================================================ (CHART) FY 00 Core Business 1470 first line Advanced Protection 180 (1650 second line) Other 316 (1966 third line) (4% reported) FY 00 Core Business 1,447 first line Advanced Protection 236 (1683 second line) Other 356 (2039 third line) *Excludes Blood Collection related revenues **Includes Safe Immunization, Prefills, Advanced Diabetes Healthcare, Ophthalmic Surgery and Advanced Drug Delivery Growth Sources Base Business (2%)* Advanced Protection 31%* Other Growth Platforms 13%** [LOGO] BD Indispensable to human health Closing Comments ================================================================================ [ ] Near Term Opportunities Are in BD's "Power Alley" [ ] Will Achieve Significantly Higher Value From Established Market Positions [ ] Intensity of Capacity Expansions and Market Conversions Delay Full "See Through" of Margin Enhancements [ ] Longer Term Opportunities Involve Higher Growth Industry Segments [ ] These Longer Term Opportunities Also Leverage Existing BD Leadership Positions and Strengths [LOGO] BD Indispensable to human health ================================================================================ [LOGO] BD Indispensable to human health ================================================================================ The following are trademarks of BD: Hypak, MonoVial, Purefill, Accuspray, Saf-T- Intima, Insyte Autoguard, Introsyte Autoguard, Safety-Lok, SafetyGlide, VACUTAINER, SoloShot, Uniject, Microneedle ================================================================================ From Vision to Value ================================================================================ Edward J. Ludwig President & Chief Executive Officer NOVEMBER 9, 2000 [LOGO] BD Indispensable to human health Changes at BD ================================================================================ [ ] Strategic Initiatives [ ] Important New Products [ ] Integration of Acquisitions [ ] Geographic Expansion [ ] Refocused Management Direction [LOGO] BD Indispensable to human health Core Businesses ================================================================================ [ ] BD Clinical Laboratory Solutions [ ] BD Medical Systems [ ] BD Biosciences [PICTURES] [LOGO] BD Indispensable to human health BD Provides the Tools for Human Health ================================================================================ [ ] Patients and Health Care Practitioners [ ] Research and Clinical Laboratories [ ] Hospitals and Homes [ ] Pharma and Biopharma "Indispensable to Human Health" [LOGO] BD Indispensable to human health Global Presence ================================================================================ Worldwide Immunization Programs [PICTURES] BD FACScalibur Worldwide Immunization Programs [LOGO] BD Indispensable to human health Long-Term Sustainable Competitive Advantage ================================================================================ [ ] Engineering [ ] Manufacturing [ ] Marketing [ ] Distribution [LOGO] BD Indispensable to human health BD Goals ================================================================================ Consistently [ ] Deliver High Quality Products [ ] Provide Customer Value [ ] Attract the Best Talent [ ] Deliver Long-Term Sustainable Growth [ ] Provide Excellent Returns to Shareholders [LOGO] BD Indispensable to human health Strong Product Franchises ================================================================================ [PIE CHART] Market Growth Competition Opportunities BD Medical BD Systems Biosciences BD Clinical Laboratory Solutions Support Initiatives [LOGO] BD Indispensable to human health New Growth Markets ================================================================================ [ ] 80% Comes From 4 Industrialized Regions (U.S., Canada, Western Europe, Japan) [ ] 20% Comes From Rest of World [ ] Operations in More Than 100 Countries [ ] Cultural Diversity in Management [LOGO] BD Indispensable to human health External Growth ================================================================================ [ ] Alliances [ ] Strategic Investments [ ] Acquisitions [LOGO] BD Indispensable to human health Strategic Actions for the Future ================================================================================ [ ] Foundation [LOGO] BD Indispensable to human health Steps Toward Sustainable Growth ================================================================================ Safety-Engineered Products Initiative [ ] New Manufacturing Systems Completed by End of 2001 [ ] $300 Million Capital Spending Program [ ] Broadest Line of Safety-Engineered Products [ ] Needlestick Safety & Prevention Act [LOGO] BD Indispensable to human health Steps Toward Sustainable Growth ================================================================================ State-of-the-Art Diagnostic Systems [ ] BDProbeTec ET Launched [ ] BD Phoenix -- Launched in Europe -- U.S. launch in early FY03 [PICTURE] [LOGO] BD Indispensable to human health Steps Toward Sustainable Growth ================================================================================ Integrated Acquisitions in BD Biosciences [PICTURE] Clontech Worldwide Leadership - Instruments PharMingen - Assays - Software - Consumables Transduction Labs - Service [LOGO] BD Indispensable to human health BD Biosciences = A Life Sciences Business ================================================================================ [ ] Separate Business Segment in FY01 - Provide transparency to highlight growth and value [ ] Fast Moving Biotech Environment - Continue with acquisitions - New technologies - Creative alliances [LOGO] BD Indispensable to human health Strategic Initiatives and Actions ================================================================================ [ ] Reduce Costs [ ] Improve Operating and Financial Performance [ ] Reintroduce Greater Clarity, Discipline and Consistency [ ] Reinvest to Support Growth in Core Businesses [LOGO] BD Indispensable to human health Genesis - Installation of SAP ================================================================================ [ ] Backbone of BD Worldwide Manufacturing, Distribution and Customer Service Operations [PICTURE] [ ] Went Live in 5 North American Manufacturing Facilities [ ] Full Implementation in 2002 [LOGO] BD Indispensable to human health E-Business Strategy ================================================================================ Global Healthcare Exchange [ ] Includes Leading Medical Device Companies [LOGO] GHX Global Healthcare Exchange [ ] Single Destination - Accessing full product array - Faster, more efficient purchasing decisions [ ] Enhances Opportunities For - Sales Growth - Supply Chain Efficiencies - Further Cost Reduction [LOGO] BD Indispensable to human health Six Sigma ================================================================================ Continuous Improvement Program [ ] Focus on Quality [ ] Over 50 BD Associates Achieved "Black Belt" Quality Certification in 2000 [ ] Potential for Significant Cost Savings [LOGO] BD Indispensable to human health 2000 and Beyond ================================================================================ [PICTURE] Operational Excellence Long-term Vision [LOGO] BD Investor Confidence [LOGO] BD Indispensable to human health Outlook for 2001 ================================================================================ [ ] Reported Sales Growth of 5% (7%, Fx Neutral) [ ] Net Income Increases 10% [LOGO] BD Indispensable to human health Build Shareholder Value ================================================================================ Increased Shareholder Value Purposeful Growth Execute Improve Focus [LOGO] BD Indispensable to human health BD Culture ================================================================================ [ ] Talented Associates [ ] Experienced Leadership Team [PICTURE] [ ] Common Vision [ ] Clear Objectives [LOGO] BD Indispensable to human health Elements for Success ================================================================================ Deliver Predictable, Consistent Performance [ ] People [ ] Products [ ] Resources [LOGO] BD Indispensable to human health ================================================================================ [LOGO] BD Indispensable to human health ================================================================================ ================================================================================ Review of BD Clinical Laboratory Solutions ================================================================================ Richard O. Brajer President BD Clinical Laboratory Solutions November 9, 2000 [LOGO] BD Indispensable to human health FY00 Revenues - BD Clinical Laboratory Solutions $1.1 Billion ================================================================================ Two Pie Charts By Business Unit By Geography BD Diagnostic 49% US/Canada 59% BD PreAnalytical Solutions 51% Europe/EMA 23% Japan 8% Asia Pacific 5% Latin America 5% [LOGO] BD Indispensable to human health Our Customers' Needs ================================================================================ [ ] Focused on Cost and Labor Constraints Imposed on the Healthcare System [ ] Department Boundaries Are Becoming Blurred (ie, Core Labs) [ ] Looking for Multidisciplined Suppliers (ie, Microbiology, Flow, Specimen Collection) [ ] Looking to Form Long-Term Partnerships to Achieve System-Wide Cost Containment [ ] Striving for Technological Advantage [ ] Information Systems Being Called on To Handle Larger Amounts of Patient Data [LOGO] BD Indispensable to human health BD Clinical Laboratory Solutions ================================================================================ - ------------------- -------------------- -------------------- Preanalytical Diagnostic Services Solutions Systems - ------------------- -------------------- -------------------- Vision: [ ] Provide Customers With System Solutions to Their Most Pressing Problems [ ] Organize the Way Customers Think About and Want to Interact With BD [ ] Open Our Field of View to New Growth Opportunities [LOGO] BD Indispensable to human health A Customer-Focused Approach ================================================================================
- ------------------- -------------------- -------------------- Preanalytical Analytical Post-analytical Phase Phase Phase - ------------------- -------------------- -------------------- [ ] Specimen Collection [ ] Data Production [ ] Information Communication [ ] ID [ ] Information Generation [ ] Specimen Retention [ ] Transport
[LOGO] BD Indispensable to human health A Customer-Focused Approach ================================================================================
- ------------------- -------------------- -------------------- Preanalytical Analytical Post-analytical Phase Phase Phase - ------------------- -------------------- -------------------- [ ] Specimen Collection [ ] Data Production [ ] Information Communication [ ] ID [ ] Information Generation [ ] Specimen Retention [ ] Transport - ------------------- -------------------- -------------------- Preanalytical Diagnostic Post-analytical Solutions Systems Phase - ------------------- -------------------- -------------------- [ ] BD Vacutainer - Blood [ ] Plated Media [ ] BD EpiCenter Collection Needles/ [ ] BD BACTEC [ ] BD.id Winged Sets [ ] BDProbeTec ET [ ] BD Vacutainer [ ] BD Phoenix Evacuated Tubes [ ] BD EpiCenter [ ] Urine Collection Systems [ ] PreAnalytiX Molecular Testing [ ] BD.id
Consulting & Services [LOGO] BD Indispensable to human health 2000 Progress ================================================================================ Preanalytical Solutions: [ ] 8%* Business Unit Sales Growth [ ] Double-Digit Sales Growth in Asia Pacific and Latin America [ ] Safety Manufacturing Capacity Expansion [ ] Eclipse Safety-Engineered [PHOTO] Needle Launch in U.S. [ ] Worldwide Market Share Increased 2% *Fx Neutral. [LOGO] BD Indispensable to human health 2000 Progress ================================================================================ Diagnostic Systems: [ ] 4%* Business Unit Sales Growth [ ] Double-Digit Sales Growth in Japan, Asia Pacific and Latin America [ ] BDProbeTec ET Worldwide Launch [ ] 148 BD ProbeTec ET Placements [PHOTO] *Fx Neutral [LOGO] BD Indispensable to human health 2000 Progress ================================================================================ Information and Services: [ ] BD.id Specimen Management System Went "Live" [ ] BD.id Medication Error [PHOTO] Management System Progressed Well in Beta Testing [ ] Good Growth in Consulting [LOGO] BD Indispensable to human health Growing the Business Segment ================================================================================ Developed Countries Developing Countries ------------------- -------------------- Single-Digit Growth Double-Digit Growth [ ] Upgrade Value in Current [ ] Drive Market Conversion Offering in Response to Real Customer Problems [ ] Enter New Product and Service Markets ------------------------------------ Grow Segment by 7%* in 2001 ------------------------------------ *Fx Neutral. [LOGO] BD Indispensable to human health 2001 Priorities ================================================================================ Preanalytical Solutions: Grow Business Unit by 8%* [ ] Drive Safety Conversion - Goal of 50% market conversion in U.S. by year-end [ ] New Product launches (Molecular/PreAnalytiX) [ ] Drive BD.id Placements and Broaden Application Offering Through Partnerships [ ] Drive Geographic Expansion - Goal of market conversion to 53% by year-end *Fx Neutral [LOGO] BD Indispensable to human health 2001 Priorities ================================================================================ Diagnostic Systems: Grow Business Unit by 6%* [ ] BD Phoenix (ID/AST) Ex-U.S. Launch - Goal of 75 placements by year-end [ ] BDProbeTecET Penetration - Goal of 150 new placements [ ] Drive Profit Growth in BACTEC Base *Fx Neutral [LOGO] BD Indispensable to human health ================================================================================ [LOGO] BD Indispensable to human health ================================================================================ The following are registered trademarks of BD: BD Vacutainer, BD.id, BD Vacutainer Evacuated Tubes, BDProbeTec ET, BD BACTEC, BD EpiCenter, BD Eclipse, BD Phoenix ================================================================================ Financial Review and Outlook ================================================================================ John R. Considine Executive Vice President and Chief Financial Officer November 9, 2000 [LOGO] BD Indispensable to human health Actions to Improve Operating and Financial Performance ================================================================================ [ ] Discontinue Certain Distributor Incentive Programs [ ] Restructure Organization Worldwide [ ] Impose Cost Controls [ ] Reduce Foreign Exchange Volatility [LOGO] BD Indispensable to human health Actions to Improve Operating and Financial Performance ================================================================================ Discontinue Certain Distributor Incentive Programs [ ] Reduces FY'00 Q4 Revenues by an Estimated $50M and EPS by About 6 Cents [ ] Improves Supply Chain and Manufacturing Efficiencies [ ] Reduces Costs [ ] Establishes Closer Links With Customers [ ] Further Inventory Reductions at the Trade Level Anticipated in FY '01 Q1 [LOGO] BD Indispensable to human health Actions to Improve Operating and Financial Performance ================================================================================ Worldwide Workforce Reorganization [ ] Eliminated 600 Staffed and 400 Vacant Positions [ ] Improves Cost Structure [ ] Majority of Savings Reinvested to Fund Key Initiatives [LOGO] BD Indispensable to human health Actions to Improve Operating and Financial Performance ================================================================================ Impose Cost Controls [ ] Includes Both Operating Costs and Capital Spending [ ] Expense Increases Will Not Exceed Revenue Growth [LOGO] BD Indispensable to human health Actions to Improve Operating and Financial Performance ================================================================================ Program to Reduce Foreign Exchange Volatility [ ] Currency Translation Hedging of European Currencies (60%), Japanese Yen and Canadian Dollar [ ] Cost for Fiscal 2001 of 3 Cents per Share Included in FY '01 EPS Guidance [ ] Translation Impact Expected to Be Unfavorable in First Half of FY '01 [LOGO] BD Indispensable to human health Fourth Quarter Earnings Reconciliation ($ in Millions) Net EPS Income Reported $ 84 $ 0.32 Add Back: Special Charges 38 0.14 Less: Gains and Favorable Tax Effects (20) (0.07) ---- ------ Pro Forma $102 $ 0.39 [LOGO] BD Indispensable to human health Full Year 2000 EPS Reconciliation Full Q1 Q2 Q3 Q4 Year Reported EPS $ 0.29 $ 0.45 $ 0.43 $ 0.32 $1.49 Special Charges -- -- -- 0.14 0.14 One-Time Gains and Favorable Tax Effects -- (0.07) (0.06) (0.07) (0.20) Product Recall -- 0.04 -- -- 0.04 Acquired In-Process R&D -- -- 0.02 -- 0.02 Property Impairment -- -- 0.01 -- 0.01 Rounding -- -- -- -- (0.01) ------ ------ ------ ------ ----- Pro Forma EPS $ 0.29 $ 0.42 $ 0.40 $ 0.39 $1.49 [LOGO] BD Indispensable to human health Fourth Quarter Pro Forma Statement of Income ($ in Millions)
- -------------------------------------------------------------------------------------------------------- Growth FY % of FY % of -------------------------- 2000 Revenue 1999 Revenue Reported FX Neutral - -------------------------------------------------------------------------------------------------------- Revenue $ 920 $ 903 1.9% 4.4% - -------------------------------------------------------------------------------------------------------- Gross Profit Margin 449 48.8% 467 51.8% Selling and 247 26.9% 244 27.0% Administrative Research & Development 53 5.7% 55 6.1% ----- ---- ----- ---- Operating Income 149 16.2% 168 18.7% Interest and Other, Net (16) (20) ----- ----- ----- ----- Income Before Income 133 14.5% 148 16.4% Tax Income Tax / Rate 31 23.2% 38 26.0% ----- ---- ----- ---- Net Income $ 102 11.1% $ 110 12.1% ===== ==== ===== ==== - --------------------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Segment Revenue - FY 2000 ($ in Millions)
- ------------------------------------------------------------------------------------------------------------------------------ Fourth Quarter Full Year -------------- --------- Growth Growth ------ ------ FY `00 Reported FX Neutral FY `00 Reported FX Neutral BD Medical Systems $502 (3.4%) (0.9%) $1,966 2.2% 4.7% BD Preanalytical Solutions 131 2.2% 4.8% 534 5.1% 7.5% BD Biosciences 287 12.7% 14.9% 1,118 13.4% 14.9% ---- ---- ---- ------ ---- ---- $920 1.9% 4.4% $3,618 5.8% 8.0% ==== ==== ==== ====== ==== ==== - ------------------------------------------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Fourth Quarter Pro Forma Statement of Income ($ in Millions)
- --------------------------------------------------------------------------------------------- FY % of FY % of 2000 Revenue 1999 Revenue Revenue $ 920 $ 903 - --------------------------------------------------------------------------------------------- Gross Profit Margin 449 48.8% 467 51.8% - --------------------------------------------------------------------------------------------- Selling and Administrative 247 26.9% 244 27.0% Research & Development 53 5.7% 55 6.1% ----- ---- ----- ---- Operating Income 149 16.2% 168 18.7% Interest and Other, Net (16) (20) ----- ---- ----- ----- Income Before Income Tax 133 14.5% 148 16.4% Income Tax / Rate 31 23.2% 38 26.0% ----- ---- ----- ---- Net Income $ 102 11.1% $ 110 12.1% ===== ==== ===== ==== - ---------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Fourth Quarter Pro Forma Statement of Income ($ in Millions)
- -------------------------------------------------------------------------------------------- FY % of FY % of 2000 Revenue 1999 Revenue Revenue $ 920 $ 903 Gross Profit Margin 449 48.8% 467 51.8% - -------------------------------------------------------------------------------------------- Selling and Administrative 247 26.9% 244 27.0% Research & Development 53 5.7% 55 6.1% ----- ---- ----- ---- - -------------------------------------------------------------------------------------------- Operating Income 149 16.2% 168 18.7% Interest and Other, Net (16) (20) ----- ----- ----- ----- Income Before Income Tax 133 14.5% 148 16.4% Income Tax / Rate 31 23.2% 38 26.0% ----- ---- ----- ---- Net Income $ 102 11.1% $ 110 12.1% ===== ==== ===== ==== - --------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Fourth Quarter Pro Forma Statement of Income ($ in Millions)
- ---------------------------------------------------------------------------------------------- FY % of FY % of 2000 Revenue 1999 Revenue Revenue $ 920 $ 903 Gross Profit Margin 449 48.8% 467 51.8% Selling and Administrative 247 26.9% 244 27.0% Research & Development 53 5.7% 55 6.1% ----- ---- ----- ---- Operating Income 149 16.2% 168 18.7% - ---------------------------------------------------------------------------------------------- Interest and Other, Net (16) (20) ----- ----- ----- ---- - ---------------------------------------------------------------------------------------------- Income Before Income Tax 133 14.5% 148 16.4% Income Tax / Rate 31 23.2% 38 26.0% ----- ---- ----- ---- Net Income $ 102 11.1% $ 110 12.1% ===== ==== ===== ==== - ----------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Fourth Quarter Tax Rate Reconciliation
- ----------------------------------------------------------------------------------------------------------------- Pretax Income Tax Effective Rate Reported Earnings $ 91,570 $ 7,556 8.3% Nonrecurring Gains and (15,923) (6,527) 41.0% Interest on Tax Refunds Special Charges 57,514 19,644 34.2% Favorable Tax Audits - 10,200 - -------- ------- ---- - ----------------------------------------------------------------------------------------------------------------- Pro Forma Earnings 133,161 30,873 23.2% - ----------------------------------------------------------------------------------------------------------------- Add Back Estimated Impact from 25,000 10,250 41.0% Discontinuance of Distributor -------- ------- ---- Incentive Programs 158,161 $41,123 26.0% ======== ======= ==== - ----------------------------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Full Year Pro Forma Statement of Income ($ in Millions)
Growth ------------------------ FY % of FY % of 2000 Revenue 1999 Revenue Reported FX Neutral - ----------------------------------------------------------------------------------------------------- Revenue $3,618 $3,418 5.8% 8.0% - ----------------------------------------------------------------------------------------------------- Gross Profit Margin 1,783 49.3% 1,734 50.7% Selling and 974 26.9% 932 27.3% Administrative Research & Development 219 6.0% 205 6.0% ------ ---- ------ ---- Operating Income 590 16.3% 597 17.4% Interest and Other, Net (69) (73) ------ ---- ------ ---- Income Before Income 521 14.4% 524 15.3% Tax Income Tax / Rate 132 25.3% 129 24.7% ------ ---- ------ ---- Net Income $ 389 10.8% $ 395 11.5% ====== ==== ====== ==== - ----------------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Full Year Pro Forma Statement of Income ($ in Millions)
- -------------------------------------------------------------------------------------------- FY % of FY % of 2000 Revenue 1999 Revenue Revenue $3,618 $3,418 - -------------------------------------------------------------------------------------------- Gross Profit Margin 1,783 49.3% 1,734 50.7% - -------------------------------------------------------------------------------------------- Selling and Administrative 974 26.9% 932 27.3% Research & Development 219 6.0% 205 6.0% ------ ---- ------ ---- Operating Income 590 16.3% 597 17.4% Interest and Other, Net (69) (73) ------ ---- ------ ---- Income Before Income Tax 521 14.4% 524 15.3% Income Tax / Rate 132 25.3% 129 24.7% ------ ---- ------ ---- Net Income $ 389 10.8% $ 395 11.5% ====== ==== ====== ==== - --------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Full Year Pro Forma Statement of Income ($ in Millions)
- ------------------------------------------------------------------------------------------ FY % of FY % of 2000 Revenue 1999 Revenue Revenue $3,618 $3,418 Gross Profit Margin 1,783 49.3% 1,734 50.7% Selling and Administrative 974 26.9% 932 27.3% Research & Development 219 6.0% 205 6.0% ------ ---- ------ ---- - ------------------------------------------------------------------------------------------ Operating Income 590 16.3% 597 17.4% Interest and Other, Net (69) (73) ------ ---- ------ ----- Income Before Income Tax 521 14.4% 524 15.3% Income Tax / Rate 132 25.3% 129 24.7% ------ ---- ------ ---- Net Income $ 389 10.8% $ 395 11.5% ====== ==== ====== ==== - ------------------------------------------------------------------------------------------
[LOGO] BD Indispensable to human health Full Year 2000 Condensed Cash Flow ($ in Millions) - --------------------------------------------------------------------- Pro Forma Net Income $ 389 Depreciation & Amortization 288 Capital Expenditures (376) Increase in Working Capital (20) Dividends Paid (96) Other, Net (28) ----- Free Cash Flow 157 Debt Reduction (168) ----- Decrease in Cash and Equivalents $ (11) ===== - --------------------------------------------------------------------- [LOGO] BD Indispensable to human health Key Ratios FY 2000 FY 1999 - ------------------------------------------------------------------ Debt to Capitalization 41.4% 47.2% Return to Equity (a) 20.9% 22.5% Return to Total Assets (a) 13.6% 14.3% Days Sales Outstanding 66 74 Inventory Turns 2.3 2.5 - ------------------------------------------------------------------ (a) Adjusted to exclude impact of special charges and non-recurring gains and losses in both years. [LOGO] BD Indispensable to human health FY 2001 Estimates - Full Year - -------------------------------------------------------------- Sales Growth 5% Reported 7% Fx Neutral FY' 01 FY' 00 ------ ------ Operating Margin 17.3% 16.3% Pro Forma EPS $1.63 - $1.65 $ 1.49 Capital Expenditures $ 300 $ 376 ($ in millions) Shares (in millions) $ 266.7 263.2 Free Cash Flow $ 300 $ 157 ($ in millions) - -------------------------------------------------------------- [LOGO] BD Indispensable to human health FY 2001 - First Quarter Revenue Estimate Sales Growth 2% Reported 3% Fx Neutral Reported Revenue Impacted by: [ ] Unfavorable Foreign Exchange Translation [ ] Continuing Inventory Reductions at the Trade Level [ ] Y2K Inventory Stocking in FY '00 [LOGO] BD Indispensable to human health FY 2001 Estimates - Full Year - -------------------------------------------------------------- Sales Growth 5% Reported 7% Fx Neutral FY' 01 FY' 00 ------ ------ Operating Margin 17.3% 16.3% Pro Forma EPS $1.63 - $1.65 $ 1.49 Capital Expenditures $ 300 $ 376 ($ in millions) Shares (in millions) $ 266.7 263.2 Free Cash Flow $ 300 $ 157 ($ in millions) - -------------------------------------------------------------- [LOGO] BD Indispensable Human Health Cash EPS [Chart] [CHART] $ 2.00 $ 1.75 EPS $ 1.50 $ 1.25 $ 1.00
FY '96 FY '97 FY '98 FY '99 FY '00 FY '01E Cash EPS $ 1.10 $ 1.26 $ 1.45 $ 1.62 $ 1.66 $ 1.81 - $ 1.83 ProForma EPS $ 1.05 $ 1.21 $ 1.37 $ 1.49 $ 1.49 $ 1.63 - $ 1.65
[LOGO] BD Indispensable to human health [LOGO] Indispensable to human health