1、2023 JP Morgan Healthcare ConferenceJanuary 10,20232023 J.P.Morgan Healthcare Conference1Agilent PresentationSafe Harbor StatementThese presentations contain forward-looking statements(including,without limitation,information,and future guidance on the companys goals,priorities,revenue,revenue growt

2、h,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 repurchases,dividends,the markets the company se

3、lls into,operations,and manufacturing site plans)that involve risks and uncertainties that could cause results of Agilent to differ materially frommanagements current expectations.The words“anticipate,”“plan,”“estimate,”“expect,”“intend,”“will,”“should,”“forecast,”“project”and similar expressions,as

4、 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

5、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

6、 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,the adverse impacts of and risks posed by the COVID-19 pandemic,a

7、nd other risks detailed in the companys filings with the Securities and Exchange Commission,including our annual report on Form 10-K for the year ended October 31,2022.The company assumes no obligation to update the information in these presentations.These presentations and the Q&A that followsinclu

8、de non-GAAP measures.Non-GAAP measures exclude primarily the impacts of amortization of intangibles,acquisition and integration costs,transformational initiatives,and business exits and divestitures.We also exclude any tax benefits that are not directly related to ongoing operations and which are ei

9、ther isolated or are not expected to occur again with any regularity or predictability.With respect to the companys guidance,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 reco

10、nciliation to GAAP amounts has been provided.2023 J.P.Morgan Healthcare Conference2Pharma&BiotechPharma&BiotechDx&CDx&CA&GA&GEnv&FEnv&FFoodFoodCAMCAM0100FY15FY22%of Agilent Revenue2023 J.P.Morgan Healthcare ConferenceFY22 EPS Growth(1)+20%$6.8BFY22 Revenue27.1%FY22 Operating Margin(1)A leading lab p

11、artner with unsurpassed capabilities and scaleLeadership in Large($68B+)(4)and Growing End-MarketsPharma&Biotech37%A&G 8%Food 9%Chemicals&Advanced Materials22%Environment&Forensics 10%Dx&Clinical 14%(1)Presented on a non-GAAP basis,reconciliations to closest GAAP equivalent provided(2)Core growth is

12、 reported growth adjusted for the effects of acquisitions and FX(3)Based on FY22 revenue(4)Based on internal company estimatesOverview of Agilent Technologies in 202236%36%RevenueRevenue25%25%RevenueRevenue39%39%RevenueRevenueFY22RevenueFY22 Core Rev.Growth(1)(2)+12%Mix Shifting to Higher GrowthPhar

13、ma/Dx/Research MarketsGlobal Footprint(3)+$0.5B y/y+160bps y/y59%51%+8%since FY153Agilents shareholder value creation model driving strong revenue and earnings growthzAbove Market GrowthOperating Margin ExpansionBalanced CapitalDeployment5 7%Core50 bps to 100 bpsContinued balanced deployment2023 J.P

14、.Morgan Healthcare Conference4Expected Result:Double Digit EPS Growth2023 J.P.Morgan Healthcare Conference5Our Build and Buy growth strategy continues to deliver accelerating core growth and earnings per share(1)Reported revenue growth(2)Presented on a non-GAAP basis,reconciliations to closest GAAP

15、equivalent provided at .$4.0$6.3$6.8FY15FY21FY2218.5%25.5%27.1%FY21FY15FY22$1.74$4.34$5.22FY21FY15FY228%Reported CAGR17%CAGR800+BPS ExpansionAbove Market Organic Growth(1)REVENUESuperior Earnings Growth(2)EARNINGS PER SHAREOperating Margin Expansion(2)OPERATING MARGIN+15%YoYcore growth+12%YoYcore gr

16、owth+32%YoYEPS growth+20%YoYEPS growthInvesting for GrowthWhile Returning Capital to Shareholderszzz$3.0BBalanced capital deploymentdriving accelerated growth and high returns for shareholdersM&ADividendsCap Exdeployedsince FY15$1.3Binvestedsince FY15$1.6Bpaidsince FY15zShare Repurchases$4.4Bpurchas

17、edsince FY152023 J.P.Morgan Healthcare Conference62023 J.P.Morgan Healthcare Conference7Committed to net-zero emissions by 2050Green Instruments&Product labelingTechnology to Reduce Lab Energy UseOur CrossLab Connect technology enables labs,which are energy intensive,to run more efficiently through:

18、Advancing ESG within our operations,and the worlds labsSustainability in Our OperationsSustainable Lab Solutionsfor Our CustomersEngineered for SustainabilityCertified Pre-Owned Instruments“Eco”Product LabelsOur refurbished instruments reduce environmental waste and serve the often-overlooked market

19、 of budget-conscious customers.Provides customers information they seek on the environmental footprint of instruments.Our Ultivo Triple Quadrupole LC/MS offers radically reduced electrical consumption.Its one of many Agilent instruments that use less energy and/or minimize waste.34%Reduction in carb

20、on emissions since 2014.$3.5MDonated to a leading historically black university to increase diversity in STEM,including scholarships,lab instruments,and mentorship.30%Increase in the share of women leaders who report to the CEO in 2021.Certification in 20+countries in 2022.Industry leading employee

21、engagement scores.Replacing helium with hydrogen,a renewable energy,as the carrier gas for several GC/MS applications.Agilents HydrolnertsourceA diversified and resilient business with multiple growth drivers.82023 J.P.Morgan Healthcare Conference9Investing in faster-growing Pharma and Clinical&Dx w

22、hile taking advantage of secular growth trends in applied markets(1)Total Available Market.Market size and growth rates per company estimates.Agilents$68BOpportunity4-6%Growth(1)Pharma$21B5-7%growthFood$5B2-4%growthAcademic&Government$13B3-5%growthClinical&Diagnostics$18B5-7%growthEnvironmental&Fore

23、nsics$6B2-4%growthChemicals&AdvancedMaterials$5B3-5%growthAgilent FY22 Growth+12%+16%+6%+3%+4%+18%+6%2023 J.P.Morgan Healthcare Conference10Building a more resilient businessincreasing share of fast growing,recurring revenue62%22%42%16%58%0%100%FY22%of Agilent RevenueCurrent Agilent Businesses-Non-R

24、ecurring RevenueCurrent Agilent Businesses-Recurring RevenueRevenue MixFY08 to FY22FY09FY20Revenue GrowthGFC1vs PandemicElectronic Measurement(spun off in 2014)Current Agilent BusinessesGlobal GDP:-1.3%Growth2:-32%TodaysAgilentGrowth2:-2%Global GDP:-3.3%AgilentGrowth3:+1%Revenue($B)$0B$6BElectronic

25、Measurement Revenue(spun off in 2014)FY08Spun off highly-cyclical electronic measurement business.Implemented CrossLabstrategy to expand services and consumables.Entered and expanded in the clinical and diagnostics market.Investments in biopharma APIs.(1)GFC:Great Financial Crisis of 2008-09(2)Local

26、 currency growth is reported growth adjusted for the effects of FX(3)Core growth is reported growth adjusted for the effects of acquisitions and FXHow we Built Resiliency$0.8B$1.2B$1.5BFY15 FY16 FY17 FY18 FY19 FY20 FY21 FY222023 J.P.Morgan Healthcare ConferenceXOur best-in-class Customer Service Org

27、anization drives customer satisfaction while scale enables continued margin expansion.60%+of revenues from annual or multi-year service agreements,delivering a strong recurring revenue stream.30%+services and consumables attach rate,with substantial headroom to grow.Services A Key Differentiator for

28、 Agilent11CrossLab Group RevenueA resilient and profitable growth engine that drives customer satisfaction Agilents Plays:Disease Research,Target ID,&Drug Dev.Bioprocess DevelopmentClinical TrialsBioprocessing&Quality ControlLeading analytical solutions in and out of the labLeader in biopharma servi

29、ces for therapy selectionMarket leadership in RNAi-based APIs and growing CRISPR positionIntegrated cell analysis solutionsOur Focus on Biopharma Is Paying Off2023 J.P.Morgan Healthcare Conference12$0.1B$1.0BFY15FY22Agilent Biopharma RevenueAnalytical SolutionsCDxServiceCell AnalysisTherapeutics CDM

30、OCDxServiceAnalytical SolutionsTherapeutics CDMOCell AnalysisLeveraging our positions across the biopharma value chain to expand offeringsNow represents 39%of pharma businessLeadership Position in Therapeutic Oligonucleotide CDMO Winning StrategyInvesting for Growth now$300MFY22 Agilent RevenueAgile

31、nt Differentiators High Quality Oligo API Material Superior Customer Service Solid&Diversified Client Portfolio Deep Technical Acumen Innovating to capture market growthAgilents unique RUO to GMP-grade CRISPR gRNA offeringTrain B Frederick,CO(1)2023 siRNA,Antisense,and CRISPR Oligo Tx CDMO estimated

32、 market size(2)Estimated Oligo Tx CDMO CAGR from 2022 to 202729%FY15-22 CAGR$150M+New Revenue Capacity$1B2023 Market TAM(1)20%+Market CAGR(2)Oligo Tx CDMOManufacturing ForecastCompelling MarketExpecting market growth rate to accelerate over the forecast periodOn track to be operational mid-year 2023

33、2023 J.P.Morgan Healthcare Conferenceand for the future20232024202520262027siRNA+AntisenseCRISPR$1B$2.4B13Announcing New NASD Capacity ExpansionOn the road to$1B in revenue2023 J.P.Morgan Healthcare Conference14Frederick Trains C&DOpening 2026/2027 Frederick Train AOpened 2019Frederick Train BOpenin

34、g 2023 Investing an estimated$725M in a new,state of the art,oligo production facility for high volume siRNA,Antisense and CRISPR gRNA materials.Doubles revenue capacity of NASD.Will include CRISPR molecule GMP capabilities at scale,using Agilents unique ClinGuide approach to gRNA manufacturing.Faci

35、lity design will also incorporate improved sustainability by enabling material conservation and recycling.FY15FY16FY17FY18FY19FY20FY21FY22Cell Analysis The“Buy”Side Is Working15Portfolio BreadthLive-cell kinetic measurement plus traditional techniques AccessibilityAdvanced capabilities to bench-scie

36、ntists&clinicsModular WorkflowsIntegrating multiple techniques and applicationsInteroperabilityCritical measurement tools with data consolidation&integration(1)based on internal company estimatesTargeting Key High-growth Segments2023 J.P.Morgan Healthcare Conference$400M+FY22 Agilent Revenue15%+FY20

37、-22 CAGR$5BMarket TAM(1)5-7%Market Growth(1)Immunology,Immuno-oncology,and ImmunotherapyInfectious Disease,Virology,&Vaccine ResearchEmerging Therapeutic Modalities:Cell&Gene TherapyHow We WinDifferentiated portfolio oriented towards growth16Trade tensions,supply chain instability,and geopolitics dr

38、iving semiconductor self-sufficiency.Support from global governments fueling corporate investments into new and expanded fabs with focus on advanced semiconductors.Agilents portfolio addresses the entire battery value chain from mining and materials processing,to cell components and recycling.Surgin

39、g demand for electric vehicles as the world transitions to renewable energy,with government spending driving private investment.200 GWh3,100GWh2002520282030Electric VehiclesOtherGlobal demand for LiBSemiconductors2023 J.P.Morgan Healthcare ConferenceAdvanced Materials:A Secular$1.5B+(1)Hi

40、gh-Growth MarketLeveraging leadership in Spectroscopy and Gas Chromatography Batteries(1)Total available market,based on internal company estimates17Growing regulation of“Forever”chemicals drives testing demandPFAS An Emerging Public Health Challenge Growing consumer awareness and government regulat

41、ions drive demand for testing and remediation.Public funding supports regular testing in drinking water,and increasingly for wastewater discharge,soil and consumer products.Military Bases Petroleum Plants Appliance PlantsAutomotive PFAS SourcesPFAS Market OpportunityThe Preferred PFAS Solution Our p

42、re-configured workflow solution provides full characterization and allows customers to address all current regulatory requirements.Agilent PFAS-specific consumables are tested to ensure they are free of regulated PFAS chemicals.15%Market CAGR$0.2B+SAM Opportunity2023 J.P.Morgan Healthcare Conference

43、Q123 and FY23 Guidanceand Forward-looking Considerations(1)As of Nov 21,2022 based on October 31,2022 exchange rates.Presented on a non-GAAP basis.(2)Core growth is reported growth adjusted for the effects of acquisitions and divestitures,and FX.Q123 Guidance(1)FY23 Guidance(1)Low EndHigh EndLow End

44、High EndNet Revenue($M)$1,680$1,700Net Revenue($M)$6,900$7,000Y/Y Core Revenue Growth(2)6.8%8.0%Y/Y Core Revenue Growth(2)5.0%6.5%Assumes-6.6%FX,+0.1%M&AAssumes-4.3%FX,+0.1%M&AEPS$1.29$1.31EPS$5.61$5.692023 J.P.Morgan Healthcare ConferenceAgilents Value Creation Model continues to deliver18In Summar

45、yAgilent haso a diversified and resilient businesso with multiple growth drivers in fast growing marketso driven by an Agilent team focused on our customers with a proven track record of success and unmatched execution capabilities.We will continueo to prioritize investments for growth,o expand our

46、base of recurring revenueo and anticipate and react quickly to changing conditions to deliver at a high level.192023 J.P.Morgan Healthcare Conference2023 J.P.Morgan Healthcare Conference2020222021%Growth20212020%Growth20202019%Growth20192018%Growth20182017%Growth20172016%Growth20162015%Growth2015201

47、4%GrowthGAAP Revenue6,848$6,319$8%6,319$5,339$18%5,339$5,163$3%5,163$4,914$5%4,914$4,472$10%4,472$4,202$6%4,202$4,038$4%4,038$4,048$0%Less:Revenue related to acquistions and divestitures(12)(14)(149)(115)(33)(4)(17)(8)(56)(61)(61)(83)Non-GAAP Revenue6,836$6,319$6,305$5,339$5,190$5,163$5,048$4,914$4,

48、881$4,468$4,455$4,194$4,146$3,977$3,977$3,965$Less:Currency adjustment(a)(230)153 (18)(107)95 (17)(70)-(244)-Agilent Core Revenue7,066$6,319$11.9%6,152$5,339$15.2%5,208$5,163$0.9%5,155$4,914$5.0%4,786$4,468$7.1%4,472$4,194$6.7%4,216$3,977$5.9%4,221$3,965$6.4%AGILENT TECHNOLOGIES,INC.RECONCILIATIONS

49、OF REVENUE EXCLUDING ACQUISITIONS AND DIVESTITURES AND THE IMPACT OF CURRENCY ADJUSTMENTS(CORE)(in millions)(Unaudited)Year Ended October 31,(a)We compare the year-over-year change in revenue excluding the effect of recent acquisitions and divestitures and foreign currency rate fluctuations to asses

50、s the performance of our underlying business.To determine the impact of currency fluctuations,current period results for entities reporting in currencies other than United States dollars are converted into United States dollars at the actual exchange rate in effect during the respective prior period

51、s.Page 1Year Ended October 31,Year Ended October 31,Year Ended October 31,Year Ended October 31,Year Ended October 31,Year Ended October 31,Year Ended October 31,Net incomeDiluted EPSNet incomeDiluted EPSNet incomeDiluted EPSNet incomeDiluted EPSNet incomeDiluted EPSNet incomeDiluted EPSNet incomeDi

52、luted EPSNet incomeDiluted EPSGAAP net income1,254$4.18$1,210$3.94$719$2.30$1,071$3.37$316$0.97$684$2.10$462$1.40$438$1.31$Non-GAAP adjustments:Asset impairments2 0.01 99 0.32 21 0.06 4 0.01 3 0.01 Intangible amortization191 0.64 194 0.63 184 0.59 125 0.39 105 0.32 117 0.36 152 0.46 156 0.47 Transfo

53、rmational initiatives30 0.10 37 0.12 53 0.17 44 0.14 25 0.08 12 0.04 38 0.12 56 0.17 Acquisition and integration costs25 0.08 41 0.13 41 0.13 48 0.15 23 0.07 32 0.10 41 0.12 13 0.04 Change in fair value of contingent consideration(25)(0.08)(21)(0.07)Loss on extinguishment of debt9 0.03 17 0.06 9 0.0

54、3 Business exit and divestiture costs7 0.02 5 0.02 2 0.01 9 0.03 10 0.03 14 0.04 Pension settlement loss4 0 1 4 0.01 Pension settlement gain(5)(0.02)(32)(0.10)(1)Pension curtailment gain(15)(0.05)Net loss(gain)on equity securities63 0.21 (92)(0.30)(28)(0.09)Gain on step acquisition of Lasergen(20)(0

55、.06)NASD site costs12 0.04 8 0.02 Special compliance costs2 0.01 4 0.01 Impairment of investment and loans25 0.08 Other12 0.04 9 0.03 10 0.04 29 0.09 (10)(0.03)5 0.02 6 0.02 5 0.01 Adjustment for Tax Reform552 1.70 Tax benefit on intra-entity asset transfer(299)(0.94)Adjustment for taxes(a)(5)(0.01)

56、(71)(0.23)(61)(0.20)(52)(0.17)(121)(0.36)(50)(0.16)(71)(0.21)(102)(0.31)Non-GAAP net income1,565$5.22$1,332$4.34$1,023$3.28$989$3.11$907$2.79$768$2.36$651$1.98$583$1.74$Page 2Other includes certain legal costs and settlements and acceleration of share-based compensation expense in addition to other

57、miscellaneous adjustments.Adjustment for Tax Reform primarily consists of an estimated provision of$499 million for U.S.transition tax and correlative items on deemed repatriated earnings of non-U.S.subsidiaries and an estimated provision of$53 million associated with the decrease in the U.S.corpora

58、te tax rate from 35%to 21%and its impact on our U.S.deferred tax assets and liabilities.The taxes payable associated with the transition tax,net of tax attributes,on deemed repatriation of foreign earnings is approximately$426 million,payable over 8 years.Tax benefit on intra-entity asset transfer r

59、elates to our operations in Singapore along with our application of the new accounting rules for income tax consequences of intra-entity transfer of assets as adopted on November 1,2018.Our management uses non-GAAP measures to evaluate the performance of our core businesses,to estimate future core p

60、erformance and to compensate employees.Since management finds this measure to be useful,we believe that our investors benefit from seeing our results“through the eyes”of management in addition to seeing our GAAP results.This information facilitates our managements internal comparisons to our histori

61、cal operating results as well as to the operating results of our competitors.Our management recognizes that items such as amortization of intangibles can have a material impact on our cash flows and/or our net income.Our GAAP financial statements including our statement of cash flows portray those e

62、ffects.Although we believe it is useful for investors to see core performance free of special items,investors should understand that the excluded items are actual expenses that may impact the cash available to us for other uses.To gain a complete picture of all effects on the companys profit and los

63、s from any and all events,management does(and investors should)rely upon the GAAP income statement.The non-GAAP numbers focus instead upon the core business of the company,which is only a subset,albeit a critical one,of the companys performance.Readers are reminded that non-GAAP numbers are merely a

64、 supplement to,and not a replacement for,GAAP financial measures.They should be read in conjunction with the GAAP financial measures.It should be noted as well that our non-GAAP information may be different from the non-GAAP information provided by other companies.Historical amounts are reclassified

65、 to conform with current presentation.AGILENT TECHNOLOGIES,INC.NON-GAAP NET INCOME AND DILUTED EPS RECONCILIATIONS(In millions,except per share amounts)(Unaudited)FY 2018FY 2019FY 2022(a)The adjustment for taxes excludes tax benefits that management believes are not directly related to on-going oper

66、ations and which are either isolated or cannot be expected to occur again with any regularity or predictability.For the years ended October 31,2022,October 31,2021,October 31,2020,October 31,2019,October 31,2018,October 31,2017,October 31,2016 and October 31,2015,management used a non-GAAP effective

67、 tax rate of 14.00%,14.25%,15.25%,16.75%,18.00%,18.00%,19.00%and 20.00%,respectively.FY 2021FY 2020FY 2017FY 2016FY 2015We provide non-GAAP net income and non-GAAP net income per share amounts in order to provide meaningful supplemental information regarding our operational performance and our prosp

68、ects for the future.These supplemental measures exclude,among other things,charges related to asset impairments,amortization of intangibles,transformational initiatives,acquisition and integration costs,change in fair value of contingent consideration,loss on extinguishment of debt,business exit and

69、 divestiture costs,pension settlement loss,pension settlement gain,pension curtailment gain,net loss(gain)on equity securities,gain on step acquisition of Lasergen,NASD site costs,special compliance costs,impairment of investment and loans,adjustment for Tax Reform and tax benefit on intra-entity as

70、set transfer.Asset impairments include assets that have been written-down to their fair value.Transformational initiatives include expenses associated with targeted cost reduction activities such as manufacturing transfers,site consolidations,legal entity and other business reorganizations,insourcin

71、g or outsourcing of activities.Such costs may include move and relocation costs,one-time termination benefits and other one-time reorganization costs.Included in this category are also expenses associated with company programs to transform our product lifecycle management(PLM)system and human resour

72、ces and financial systems.Acquisition and Integration costs include all incremental expenses incurred to effect a business combination.Such acquisition costs may include advisory,legal,tax,accounting,valuation,and other professional or consulting fees.Such integration costs may include expenses dire

73、ctly related to integration of business and facility operations,the transfer of assets and intellectual property,information technology systems and infrastructure and other employee-related costs.Change in fair value of contingent consideration represents changes in the fair value estimate of acquis

74、ition-related contingent consideration.Loss on extinguishment of debt for the year ended October 31,2022 relates to the net loss recorded on the redemption of the$600 million outstanding 3.875%2023 senior notes due on July 15,2023,called on April 4,2022 and settled on May 4,2022.For the year ended O

75、ctober 31,2021,it relates to the net loss recorded on the redemption of the$100 million of the$400 million outstanding 3.2%2022 senior notes due on October 1,2022,called on December 22,2020 and settled on January 21,2021 and the net loss recorded on the redemption of the remaining$300 million called

76、 on March 5,2021 and settled on April 5,2021.For the year ended October 2019,it relates to the net loss recorded on full redemption of$500 million of outstanding 5.00%senior notes due July 2020,called on August 16,2019 and settled on September 17,2019.Business exit and divestiture costs include cost

77、s associated with business divestitures.Pension settlement loss relates to the relief of the US Retirement Plan pension obligation due to increased lump sum payouts over a specified accounting threshold.Pension settlement gain resulted from transfer of the substitutional portion of our Japanese pens

78、ion plan to the government.Pension curtailment gain resulted from certain retirement plans benefit reductions.Net loss(gain)on equity securities relates to the realized and unrealized mark-to-market adjustments for our marketable and non-marketable equity securities.Gain on step acquisition of Laser

79、gen resulted from the measurement at fair value of our equity interest held at the date of business combination.NASD site costs include all the costs related to the expansion of our manufacturing of nucleic acid active pharmaceutical ingredients incurred prior to the commencement of commercial manuf

80、acturing.Special compliance costs include costs associated with transforming our processes to implement new regulations such as the EUs General Data Protection Regulation(GDPR),revenue recognition and certain tax reporting requirements.Impairment of investment and loans include investments and their

81、 related convertible loans that have been written down to their fair value.OperatingOperatingOperatingOperatingOperatingOperatingOperatingOperatingFY 2022Margin%FY 2021Margin%FY 2020Margin%FY 2019Margin%FY 2018Margin%FY 2017Margin%FY 2016Margin%FY 2015Margin%Agilent GAAP Revenue$6,848$6,319$5,339$5,

82、163$4,914$4,472$4,202$4,038 Income from operations:GAAP Income from operations1,618$1,347$846$941$928$841$615$522$Pension reclass adjustment(24)$(34)$(28)(19)GAAP income from operations1,618$23.6%1,347$21.3%846$15.8%941$18.2%904$18.4%(a)807$18.0%(a)587$14.0%(a)503$12.5%(a)Add:Asset impairments2 99 2

83、1 4 3 Intangible amortization191 194 184 125 105 117 152 156 Transformational initatives30 37 53 44 25 12 38 56 Business exit and divestiture costs7 5 2 9 11 12 Acquisition and integration costs25 41 41 48 23 30 41 13 Change in fair value of contingent consideration(25)(21)NASD site costs12 8 Specia

84、l compliance costs2 4 Impairment of investment and loans7 Other 11 8 31 30 5 7 7 5 Non-GAAP income from operations1,857$27.1%1,613$25.5%1,256$23.5%1,202$23.3%1,104$22.5%(a)973$21.7%(a)847$20.2%(a)748$18.5%(a)Our management recognizes that items such as amortization of intangibles can have a material

85、 impact on our cash flows and/or our net income.Our GAAP financial statements including our statement of cash flows portray those effects.Although we believe it is useful for investors to see core performance free of special items,investors should understand that the excluded items are actual expens

86、es that may impact the cash available to us for other uses.To gain a complete picture of all effects on the companys profit and loss from any and all events,management does(and investors should)rely upon the GAAP income statement.The non-GAAP numbers focus instead upon the core business of the compa

87、ny,which is only a subset,albeit a critical one,of the companys performance.Readers are reminded that non-GAAP numbers are merely a supplement to,and not a replacement for,GAAP financial measures.They should be read in conjunction with the GAAP financial measures.It should be noted as well that our

88、non-GAAP information may be different from the non-GAAP information provided by other companies.Page 3AGILENT TECHNOLOGIES,INC.RECONCILIATION OF ADJUSTED NON-GAAP INCOME FROM OPERATIONS AND OPERATING MARGINS(In millions,except margin data)(Unaudited)(a)Adjusted to include the impact of pension expen

89、se reclassification due to adoption of new accounting pronouncement as of November 1,2018.We provide non-GAAP income from operations in order to provide meaningful supplemental information regarding our operational performance and our prospects for the future.These supplemental measures exclude,amon

90、g other things,charges related to asset impairments,amortization of intangibles,transformational initiatives,business exit and divestiture costs,acquisition and integration costs,change in fair value of contingent consideration,NASD site costs,special compliance costs and impairment of investment and loans.