Becton, Dickinson And Co. - 6% PRF CONVERT 01/06/2023 USD 50 - Ser B

Q2 performance beat expectations; broad-based growth - Revenue $4.7B, +2.6% YoY (FX-neutral basis) with >90% of the portfolio delivering mid-single-digit growth. - Adjusted operating margin 24.2% and adjusted EPS $2.90 (+3.9% YoY), ahead of expectations. - Margin pressure included tariffs (160 bps), partially offset by productivity/mix; management says gross and operating margins were still ahead of expectations.

“New BD” strategy shows scaling growth platforms + execution system (BD Excellence) - Key growth platforms delivering double-digit growth in Q2, including Biologic drug delivery, Advanced Patient Monitoring (APM), PureWick, Advanced Tissue Regeneration. - Also mid- to high-single-digit growth in oncology, peripheral arterial disease, and Rowa pharmacy automation. - Commercial execution: share gains / customer conversions noted (e.g., Alaris ~50 bps in Q2 and ~150 bps YTD). - R&D execution via BD Excellence: reduced time to launch by 10+ months on average for development programs where applied.

Full-year outlook: raising adjusted EPS guidance; revenue guidance unchanged - Revenue guidance reaffirmed: low single-digit growth; second-half revenue expected ~similar to first half (management cites comparable comps and improved visibility). - Currency expected tailwind: ~120 bps (based on current spot rates). - Adjusted operating margin expected ~25% (inclusive of tariffs); tax rate expected 16%–17%. - Adjusted EPS raised to $12.52–$12.72 (up from prior outlook implied by “raising guidance”), driven by first-half performance and margin/productivity execution.