BECTON DICKINSON AND COMPANY SECOND QUARTER MEETING New York, NY April 28, 1999 BECTON DICKINSON AND COMPANY REVENUES - SECOND QUARTER (In Millions) - -------------------------------------------------------------------------------- FY1999 FY1998 % INC/(DEC) ------ ------ ----------- BUSINESS SEGMENT AS FX - ---------------- REPORTED NEUTRAL -------- ------- MEDICAL SUPPLIES & DEVICES $ 484 $ 384 26.1 24.5 DIAGNOSTIC SYSTEMS 390 355 10.0 8.4 ------ ------ TOTAL $ 874 $ 738 18.4 16.8 ====== ====== GEOGRAPHIC AREA - --------------- UNITED STATES ------------- MEDICAL SUPPLIES & DEVICES $ 226 $ 199 13.6 DIAGNOSTIC SYSTEMS 212 203 4.4 ------ ------ TOTAL UNITED STATES 438 402 8.9 ------ ------ INTERNATIONAL ------------- MEDICAL SUPPLIES & DEVICES 257 184 39.6 36.3 DIAGNOSTIC SYSTEMS 179 152 17.5 13.8 ------ ------ TOTAL INTERNATIONAL 436 336 29.6 26.1 ------ ------ TOTAL $ 874 $ 738 18.4 16.8 ====== ====== BECTON DICKINSON AND COMPANY REVENUES - SIX MONTHS (In Millions) - -------------------------------------------------------------------------------- FY1999 FY1998 %INC/(DEC) ------ ------ ------------------- BUSINESS SEGMENT AS FX - ---------------- REPORTED NEUTRAL -------- ------- MEDICAL SUPPLIES & DEVICES $ 909 $ 756 20.2 19.8 DIAGNOSTIC SYSTEMS 734 684 7.3 6.6 ------ ------ TOTAL $1,643 $1,440 14.1 13.6 ====== ====== GEOGRAPHIC AREA - --------------- UNITED STATES ------------- MEDICAL SUPPLIES & DEVICES $ 419 $ 400 4.7 DIAGNOSTIC SYSTEMS 398 391 2.0 ------ ------ TOTAL UNITED STATES 817 791 3.4 ------ ------ INTERNATIONAL ------------- MEDICAL SUPPLIES & DEVICES 490 356 37.6 36.8 DIAGNOSTIC SYSTEMS 336 293 14.5 12.8 ------ ------ TOTAL INTERNATIONAL 826 649 27.1 26.0 ------ ------ TOTAL $1,643 $1,440 14.1 13.6 ====== ====== BECTON DICKINSON AND COMPANY INCOME STATEMENTS - SECOND QUARTER (In Millions, Except Per Share Amounts) - ------------------------------------------------------------------------------- THREE MONTHS ENDED MARCH 31, ----------------------------------------------- 1999 1998 ----------------- ---------------- % OF % OF % AMT REV AMT REV INC/(DEC) -------- -------- -------- ------- ----------- REVENUES $ 874 100.0 $ 738 100.0 18.4 COST OF PRODUCTS SOLD 429 49.1 364 49.3 17.9 -------- -------- GROSS PROFIT 445 50.9 374 50.7 18.8 SELLING & ADMINISTRATIVE 233 26.7 186 25.2 25.3 RESEARCH & DEVELOPMENT 67 7.7 44 5.9 53.6 -------- -------- OPERATING INCOME 144 16.5 145 19.6 (.1) INTEREST EXPENSE, NET (19) (2.1) (11) (1.5) 64.2 OTHER INCOME (EXPENSE), NET 1 .2 (3) (.4) NM -------- -------- INCOME BEFORE INCOME TAXES 127 14.5 130 17.6 (2.2) INCOME TAX PROVISION/RATE 37 29.1 38 29.0 (1.8) -------- -------- NET INCOME $ 90 10.3 $ 92 12.5 (2.4) ======== ======== EARNINGS PER SHARE - ------------------ BASIC $ .36 $ .37 (2.7) ======== ======== DILUTED $ .34 $ .35 (2.9) ======== ======== NM - Not Meaningful BECTON DICKINSON AND COMPANY INCOME STATEMENTS - SIX MONTHS (In Millions, Except Per Share Amounts) - -------------------------------------------------------------------------------
SIX MONTHS ENDED MARCH 31, --------------------------------------------------------- 1999 1998 --------------------- -------------------- % OF % OF % AMT REV AMT REV INC/(DEC) ------- ------- ------- -------- --------- REVENUES $ 1,643 100.0 $ 1,440 100.0 14.1 COST OF PRODUCTS SOLD 815 49.6 719 49.9 13.4 ------- ------- GROSS PROFIT 828 50.4 721 50.1 14.8 SELLING & ADMINISTRATIVE 456 27.8 385 26.7 18.4 RESEARCH & DEVELOPMENT 117 7.1 88 6.1 31.8 ------- ------- OPERATING INCOME 255 15.5 248 17.2 3.1 INTEREST EXPENSE, NET (37) (2.2) (22) (1.5) 69.0 OTHER INCOME (EXPENSE), NET 2 .2 (5) (.4) NM ------- ------- INCOME BEFORE INCOME TAXES 221 13.5 221 15.3 .2 INCOME TAX PROVISION/RATE 55 24.8 64 29.0 (14.3) ------- ------- NET INCOME $ 166 10.1 $ 157 10.9 6.1 ======= ======= EARNINGS PER SHARE - ------------------ BASIC $ .66 $ .63 4.8 ======= ======= DILUTED $ .63 $ .60 5.0 ======= =======
NM - Not Meaningful BECTON DICKINSON AND COMPANY BALANCE SHEETS ASSETS (In Millions) - -------------------------------------------------------------------------------
MARCH 31, SEPTEMBER 30, 1999 1998 -------------- -------------- CASH & EQUIVALENTS $ 74 $ 83 SHORT-TERM INVESTMENTS 8 7 TRADE RECEIVABLES, NET 754 727 INVENTORIES 600 537 PREPAID EXPENSES & OTHER 198 189 -------------- -------------- TOTAL CURRENT ASSETS 1,634 1,543 PROPERTY, PLANT & EQUIPMENT, NET 1,327 1,303 OTHER 1,172 1,001 -------------- -------------- TOTAL ASSETS $ 4,132 $ 3,846 ============== ==============
BECTON DICKINSON AND COMPANY BALANCE SHEETS LIABILITIES AND SHAREHOLDERS' EQUITY (In Millions) - -------------------------------------------------------------------------------
MARCH 31, SEPTEMBER 30, 1999 1998 -------------- -------------- SHORT-TERM DEBT $ 658 $ 385 PAYABLES & ACCRUED EXPENSES 641 707 -------------- -------------- TOTAL CURRENT LIABILITIES 1,299 1,092 LONG-TERM DEBT 761 765 LONG-TERM EMPLOYEE BENEFIT OBLIGATIONS 335 327 DEFERRED INCOME TAXES & OTHER 52 49 SHAREHOLDERS' EQUITY 1,684 1,614 -------------- -------------- TOTAL LIABLITIES & SHAREHOLDERS' EQUITY $ 4,132 $ 3,846 ============== ==============
BECTON DICKINSON AND COMPANY STATEMENTS OF CASH FLOWS (In Millions) - -------------------------------------------------------------------------------- SIX MONTHS ENDED MARCH 31, ---------------------- 1999 1998 ------ ------ OPERATING ACTIVITIES: - --------------------- NET INCOME $ 166 $ 157 DEPRECIATION & AMORTIZATION 128 109 PURCHASED IN-PROCESS R&D 17 - WORKING CAPITAL & OTHER ITEMS (193) (26) ------- ------- 119 239 ------- ------- INVESTING ACTIVITIES: - --------------------- CAPITAL EXPENDITURES (133) (90) ACQUISITIONS OF BUSINESSES (153) (65) CHANGE IN OTHER INVESTMENTS & OTHER NON-CURRENT ASSETS (78) (35) ------- ------- (364) (190) ------- ------- FINANCING ACTIVITIES: - --------------------- NET CHANGE IN DEBT OUTSTANDING 263 4 ISSUANCE OF COMMON STOCK 15 29 REPURCHASE OF COMMON STOCK - (44) DIVIDENDS PAID (43) (37) ------- ------- 235 (49) ------- ------- NET DECREASE IN CASH & EQUIVALENTS $ (9) $ - ======= =======