Well, good morning, everybody. My name is Matt Miksic at Barclays. I cover U.S. medical devices. We're super pleased to have with us this morning, the part of the management team here from Becton, Dickinson. We have Chris DelOrefice, EVP and CFO. Dave Hickey, EVP and President of Life Sciences. You know, I wanted to, you know, first thank you both for coming. My first year at this conference, it's been great so far. I wanted to take sort of like it's a little bit of a higher level view of the company, kind of step through, you know, what's driving the growth and what's driving the margin, benefits that you've been able to deliver. In part because, you know, on the growth side, you know, for a traditional Becton, Dickinson, I think a lot of people have been surprised, intrigued, and maybe a little skeptical that you can maintain this kind of higher tier of growth that you've started to deliver in the last couple of years. On the margin side, I think it's notable that, you know, in a landscape of medical device companies that are all facing headwinds and struggling to deliver some margin improvement this year, you delivered a pretty strong step-up in margins last year and a pretty strong step-up in this year on deck. Trying to get at maybe, you know, some of the drivers of those things. Maybe starting off, Chris, you know, you talk often about these three pillars, and as sell side analysts and investors, to be quite honest, a lot of times we see three pillars. We see a picture of a big thematic mission statement, and we kind of just move right to the next slide. You know, Tom and team really do refer to these things often as a construct to think about the company. In this case, sort of listening to you and drilling down into it, I think it's a meaningful construct to talk about. Maybe first starting with the investment profile and what is helping you to start to drive this kind of growth. You talk about investing in R&D. Can you talk a little bit about, you know, how these programs that you've been investing in are tracking as a percentage of sales and kind of where that goes over time, just because you have been sort of overweight investing in higher growth R&D programs. Yeah, perfect. Well, thanks for having us, Matt. It's terrific to be here. Good morning, everyone. I think, great to kind of pick up on, I guess, what you'd call maybe the pivot of BD a bit. I think it's important to kind of anchor against the BD 2025 strategy. I can talk about your question specifically on R&D, which is a key component of that, right? We're almost halfway into the BD 2025 timeframe. As we set out that vision, you know, we talked about transforming that growth profile, delivering this 5.5%+. On a very nice profile of a very reliable mid-single digit 5.5% you can count on, but with lots of opportunities to drive the plus side equation of that. I think what folks are starting to appreciate is, to your point, you know, BD's always been a core player in healthcare, right? Our, our portfolio, we have critical products that are essential to care every day. We support the discovery, diagnostics, treatment of disease. That always lent itself, and we have strong leadership positions there, right? Deep moats, quality, strong execution. That's what most folks know. That always lent itself to a nice, you know, strong, durable, reliable growth profile that in and of itself is strong. Today, about 75% of our portfolio sort of fits that definition. What I think has been underappreciated is this pivot. We've been, Tom, when he sent out the BD 2025 vision, wanted to drive into, in essence, what would become the durable core or future durable core of healthcare. We kind of call that transformative solutions. They're anchored against these three irreversible forces that we believe are gonna shape healthcare. Connected care, new care settings, chronic disease and driving solutions, innovation, products that really help improve outcomes through those irreversible forces. Again, that's about approaching 25% of our portfolio. These opportunities we have in our portfolio are high single-digit growers. Some are within double digits, but collectively as a portfolio, you're talking about high single-digit growth. We've been very focused on driving that through portfolio actions, both strategic portfolio actions, how we think of R&D, how we think of tuck in M&A, which I'm sure we can talk more about, which is kind of another new lever that BD has at its disposal. It's an exciting time, and what I think is really interesting is this pivot to a higher growth profile doesn't come with high risk. It's still in these durable critical care areas where BD can have leadership positions. We're not also. We often get asked the R&D question. We're not dependent on these larger R&D programs that create a lot of volatility. You know, as I think of, you know, myself being a finance person and looking at how to make investments and triaging return versus risk, you guys think of it the same way in terms of as you think of companies. I think you get the best of strong value proposition coupled with a lower risk profile, and you get that nice balance of durable, strong growth and actually an accelerating growth profile. It's exciting. Like I said, we're actually doing this, right? We're halfway into this now. I think we've got enough data points where folks are starting to see this play out real time. If you look at our implied two-year CAGR now, almost two years into it, with last year's actuals, about halfway into this year and the guide we gave, you're talking about an 8% growth profile or almost 7% on an organic basis. Even if you strip out the one-time lift from tuck-in M&A. It's pretty compelling. On the R&D front, to your point, we've really been on a journey of increasing R&D productivity. The first thing we did is we felt like we were under-investing in R&D, we actually increased the amount of R&D to about 6% of sales. Everyone should understand that that 6% is not equal across our portfolio. There's areas like Dave's area where we over-index. There's other areas where you maybe expect in some of our medical businesses where you don't need quite that same level. It's not just a flat allocation. We look at where there's opportunities, and the business helps drive how to optimize that within their portfolio. One, we increase the absolute amount, but more importantly, we've been very focused on productivity. At Investor Day, we outlined a path where today our contribution from R&D is worth about $800 million of incremental new product revenue on fifth-year sales. It's a forward-looking metric. It's a way to assess kind of the value of your portfolio. The goal was to more than double that by 2025, and we're already at $1.1 billion. When you look at our portfolio from when we started our Investor Day presentation, our portfolio had fifth-year incremental revenue value of about $800 million. That's already grown to $1.1 billion. Nice. You know, that's helping our near-term growth rate too, and that'll continue. In addition to that's kind of more of a forward view of how we're advancing our portfolio. You have to couple with that, how are you executing against the short term? We launched 25 products last year. We have record levels of on-time milestone achievement, on-time launch achievement, and it's metrics that we look at in our monthly operating community meetings that we have all the time. Very focused on execution. Holistically, as you think through kind of the rhythm that'll help that enhanced growth profile through 2025, we're talking about 100 new product launches over that. Roughly 25 per year on average. We do have some significant ones that can meaningfully drive growth. We have about 25+ that are $50 million in sales or more, and another 20 that are at least $30 million in sales. We have some compelling innovation in the portfolio that we're very excited about. Again, collectively, I think that sets up the strategy, how we're thinking of growth, the R&D role, and we feel really good about how we've executed that almost halfway in, so. Okay. Well, that's a, that's a super comprehensive and helpful answer to get started. May have covered already a lot of that pillar. I mean, one of the aspects of, and I think you've described, is when you talk about investing in R&D, that's basically your organic internal programs. Yes. Then you've been fairly, you know, acquisitive. I would say, I mean, from a distance, less acquisitive in sort of big chunky, you know, platform ways. Yeah. Than more acquisitive across, you know, your various business lines and divisions. Maybe Dave, with that context, just maybe talk about in life sciences. Yeah. How does some of what Chris just said translate down into life s ciences and where have the acquisitions been sort of, you know, driving or helping to drive additional growth? Yeah, that's a great question, Matt. Morning, everybody. I mean, if you think about life sciences as just one of the three operating segments, it's how we execute on our innovation programs. You know, we have a real sort of balanced focus on both organic innovation to drive growth, particularly in these transformative spaces that Chris has talked about. We certainly see our revenue mix changing over time through BD 2025, into those higher growth spaces like point of care, like chronic disease, like smart connected care, and I'll talk about that in a second. There's also an inorganic piece as well. Probably one example I would call out, because we're just about a year in from that acquisition, is Cytognos. Cytognos was a small, private company out of Europe that had a very unique capability for looking at minimal residual disease in cancer. We've now sort of acquired that and integrated that into our bioscience business unit. One of the things, if you think about biosciences, it really is about the study and the analysis of cells to understand the human immune response. One of the things that we put out there as a value proposition right at the Investor Day was that, within biosciences, being relevant and having a continuum from early discovery into diagnosis and then helping that diagnosis inform treatment and response in cancer was the value proposition. We already had a really good portfolio in discovery and diagnosis, but we wanted that end piece of monitoring treatment. We do a lot of work in leukemia and lymphoma, Cytognos had got a really, really compelling platform, flow cytometry-based, it was consistent with our fields of expertise, and they had this sort of capability to look at minimal residual disease. Once somebody's been treated for cancer, you really want to know, do they have any residual disease left? That was the big driver behind it. Now, you know, we've really stepped up our sort of relevance in that continuum of cancer diagnosis and care. Of course, one of the benefits that BD brings to it is this was a small private company basically centered in Europe. We'll now look to sort of use our global footprint and scale to drive that forward. On the other one, organic maybe example I will give, because one of these transformative forces that Chris talked about is what we call smart connected care. This is the role of lab automation. It's a high-growth area, and it really is a double benefit. We have platforms like our BD Kiestra Lab Automation to fully automate and integrate clinical microbiology. We have platforms like our BD COR, which fully automates high volume molecular and cervical cancer testing. When you look at labs where they're faced with challenges of staff attrition, staff recruitment, automation can actually help with that. It also helps labs sort of become more efficient and process-driven and standardized at what they do. They would be two examples of it. Okay. We're coming up on like about 10 or 11 minutes left. Before we maybe pivot over into sort of simplification and some of the margin programs, you know, I'd love to get your sense of and sort of translation of digital health and connected care. It means almost anything to anybody, just depending on how you want to define it. You know, I guess, how do you look at that? How, like, diffuse is that across the different platforms and businesses that you have? You know, if you look at your flow of sort of business development and strategic investment, you know, where does that fit in terms of priorities and assets that you're looking at or acquiring? Yeah, it's a great question. Certainly as we look at M&A or any investments we're making, we do look at those three irreversible forces. Connected care is certainly one of them. The simplest way to maybe think of it, there's obviously sort of, you know, standard products that perform a function, but it's the intersection of products performing functions, technology that can drive, you know, obtain data from those functions that they perform, create insights, leveraging AI, leveraging informatics, and a strong connection into workflow dynamics as well, right? Like actually understanding not just what the product's doing through the patient lens, but how they're interacting with the healthcare system itself. And collectively thinking of those through the lens then of can we enhance outcomes, can we enhance productivity in the healthcare system, et cetera. There's a lot of different ways to get at that combination of what products do, technology, the interface of those. That's how we think of it. We do have them across our portfolio, things in development, things that are in the market. One of an interesting example is a diversion technology platform we have in our MMS business, right? You have the interface of controlled drug substance and delivery of medication through our Pyxis systems. We have a technology that sits in the cloud that can do a combination of inventory flow management, so it helps with the inventory flow side, but more importantly, tracks kind of products from beginning to end of a life cycle and can create kind of algorithms based on the data around, you know, risk factors that they see play out, right? Are dosing protocols being applied properly, underdosing, overdosing? Create all these learning triggers that can then go back to the healthcare system to be investigated and ensure there's not issues with diversion or, you know, misuse or things like that can actually lead to a better application of medication. It's a really neat platform that takes technology and interfaces with a product platform as well and offers value much beyond just what those two things do individually. I think that's a great example. We have it in other parts of our business. I think Dave can talk about life sciences as well. Yeah. I mean, you know, I already talked about Kiestra, which is the connectivity in a clinical laboratory to just automate things. I think where I would sort of maybe elaborate is also the role and the importance of artificial intelligence, right? The way that when we get all these data and data insights, and, you know, some of the technologies that you deploy, you can do things now quicker than perhaps a technician can in a clinical lab. If you think about, let's say, the prescribing of antibiotics when somebody's got a severe infection, imagine being able to do that one or two days earlier than the traditional manual routines today. It all feeds really nicely into improving this clinical outcome story. Yes, it's connected care, but the AI on how you inform clinical insights is really important. Okay. I think the thing that's interesting is when you go back to where I started, that the breadth and depth of the BD portfolio and how many things we touch in the healthcare system across that care continuum, it really does uniquely position us to sort of connect those dots that I think is pretty unique to us. Sure. No, it's, I mean, the culture and the platforms of the business already had a fair amount of kind of, you know, IT/software management, you know, capabilities. Being able to layer these things in organically is one. I think, you know, some of the things we've seen from BD and others that have been successful is sort of, you know, finding, you know, what problems are your, are your hospital and clinical customers trying to solve, and then sort of snapping those on and having a lot of platforms to do that is a good place to. Yeah. To be. Especially in this environment too, right? Sure. More so than ever, the healthcare system. Right. Needs relief in terms of cost-effective solutions, et cetera. Right. speaking of, you know, pressures and headwinds and the search for relief, maybe talk a little bit about, let's go to the second pillar, which is simplification here. I can tell already by looking at the clock. The slides. We're not getting to the third pillar. We'll do our best. As I mentioned, you know, one of the things that, you know, when we launched in October and thought about, you know, BD and launching in December was this kind of thematic of discontinuous tailwinds, you know. Without, you know, your long-term simplification programs, you know, had you been hit by all the inflationary forces that everyone else was hit by, you know, you would've been in reaction mode. As it turns out, you were already kind of in proaction mode and so that appears from the outside, to me anyway, to put you in a more advantageous position as you're dealing like everybody else with these headwinds. Maybe talk a little bit about, you know, what, kinds of margin improvement sort of stands out in the current environment and, you know, what helps you get to this math of sort of a 300 basis point headwind, but an, you know, call it at least a 100 basis point margin improvement in your current fiscal year. Yeah. We're really excited about it. Simplified, by the way, it's obviously part of it's about getting to just healthy, continuous, consistent margin profile. With that also comes freeing up capacity in many ways, whether it be freeing up resources, freeing up share of mind and capacity of those resources, cost benefits that can be used to reinvest and sort of fuel growth, right? You get into this sort of flywheel. So it has many benefits. When we embarked on our Investor Day goals, inflation had kind of just started. Yes, we had some of those things in process, but there's also been a significant inflection up that I don't think anyone contemplated. It'll tie a little bit into, I know we don't have time to talk kind of about the empowerment side of the pillar, but we were both proactive and strategic in terms of how to think of the simplification part of the BD strategy. At the same time, I think just what we've done from an organization culture standpoint on empowerment and agility and be able to be very responsive within that framework and adjust accordingly has been very strong, really proud of what everyone's done there. The simplification, it's funny, it starts with growth. First of all, we've been very active in just how we're growing, right? Thinking of portfolio dynamics and where we drive our growth. That includes even actions that, you know, we took a pretty bold action this year, given our strong growth profile, just to exit some products. This has nothing to do with our simplification program. It's kind of one time in nature, products that have really low GPs relative to the base and, you know, those kind of things in your business, there's costs that go with them. You know, regulatory costs, legal costs, they take up capacity in the plant. It adds up, and so it frees up capacity for higher growth areas. We took bold actions like that. We have Project RECODE, SKU rationalization, which we're well on the way. We're about halfway through that in 2022, exiting about 2,500 SKUs. The SKU rationalization is different. These are highly transferable from a revenue standpoint. It's just getting more efficient with your portfolio. Instead of having 3,000 SKUs to serve patients, can you do it with half of the SKUs? You remove complexity of packaging configurations and different size put-ups and colors. It's amazing when you start unpacking it, how much complexity that creates. Network simplification. We just launched our third kind of pillar, which was operating model simplification, which gets more about how the organization operates and gets a bit of that empowerment pillar. To your point, the good news is, what we delivered in 2022 got us halfway to our goal. We execute this year, we'll be about 70% on our way. Our margin in Q1 was actually very strong. We contemplated the peak of inflation flowing through it, over 350 basis points of inflation that hit us in Q1, yet we had a very strong margin profile. That leaves us an opportunity as we think of the back half. I mean, we're basically ahead if you just sort of kind of straight line the math. It affords us the opportunity to have excess levers to reinvest, continue to support that growth side of the equation and feel really good about what we're doing there. That's great. Maybe the last question here that we've got, you talked a little bit about your, so I'd be remiss if I didn't just get a quick take on sort of China. I think a lot of people see that as a sort of a sun-setting issue that was, you know, big in Q4 into calendar Q1. Yeah. I guess just, Mike or Dave, rather, your quick take on. Yeah. On where you are at with that impact. I mean, I think on a full year basis for China, for life sciences, we anticipate minimal impact when you look at the timing of the full year. You know, as we talked in our Q1 earnings release, there was some softness because of the lockdown in Q1. Actually, when you look at the, let's say the bioscience business, which is predominantly research, that was still got a really good momentum because people were still doing research in the country to even sort of understand, you know, the sort of the viruses and things like that. On the clinical side, that's where a little bit of the softness was on the diagnostic side. That is actually, you know, now starting to come back. We're seeing the tenders. We talk to that team a lot, as you can imagine. When we start to see the tender velocity, et cetera, on a full year basis, we see minimal impact. Okay. maybe just with the very short period of time that we have, you know, M&A activity, BD activity, I mean, business development, not Dickinson again. Yeah. Yeah, that was one of the things we highlighted is just with the Bard, you know, integration and some of the, you know, we'd refer to as like kind of Bard DNA now inside of BD, you know, it's clearly been part of a lift in M&A activity. Yeah. At BD. you know, just, you know, at a high level, is that a pace that you kind of expect to continue here in 2023 and 2024? Yeah. You know, maybe talk about a little bit about that. Yeah. That's a great question. It's interesting, you mentioned CareFusion, Bard, obviously two big kind of more transformative type deals. That's not part of our strategy. If you go pre those dates, the biggest deal we've done was $300 million. It wasn't a core part of what BD's growth profile was, going back to this inflection and even a stronger growth profile, but still durable. M&A, we've talked about $1.5 billion-$2 billion of capital per year that should be available. We want to deploy it against tuck-in M&A. A portion of it will be against a combination of these smaller tuck-ins that are almost substitutes to supplement your organic R&D portfolio, like we did, you know, the first $1.5 billion of this $3 billion that we spent over the past like two-plus years, was these smaller ones. We did Parata. Yeah. Which was, you know, bigger, but still tuck-in in nature and came with a very strong double-digit growth profile, more an immediate benefit. The nice thing we are seeing is in the BD growth profile. Once you anniversary these, they're adding to our growth, right? Last year it was 20 basis points. We're at about 30 basis points now. Once we anniversary Parata, you've got about 50 basis points of growth that's additive. Again, it's part of that plus equation on the five-five. I think this, we're in the early days of this with BD, to your point. You know, obviously we got to keep executing against the business. The one thing we do as a team is have a very disciplined approach about capital allocation. You have to earn the right for us to invest in you by performing against your base. Those dollars should be available to help that growth profile. Excellent. Well, that's probably a good place to stop since we're at time. Yep. Thanks guys. Appreciate it. Thanks so much. Thank you so much. Appreciate it. Appreciate that. Thanks. Thank you.