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2012 Annual Report Helping all people live healthy lives

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Page 1: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

2012 Annual Report

Helping all people live healthy lives

Page 2: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

BD is a leading global medical technology company that develops,

manufactures and sells medical devices, instrument systems and reagents.

The Company is dedicated to improving people’s health throughout the

world. BD is focused on improving drug delivery, enhancing the quality

and speed of diagnosing infectious diseases and cancers, and advancing

research, discovery and production of new drugs and vaccines. BD’s

capabilities are instrumental in combating many of the world’s most

pressing diseases. Founded in 1897 and headquartered in Franklin Lakes,

New Jersey, BD employs nearly 30,000 associates in more than 50 countries

throughout the world. The Company serves healthcare institutions, life

science researchers, clinical laboratories, the pharmaceutical industry and

the general public. For more information, please visit www.bd.com.

Financial Highlights

Thousands of dollars, except per share amounts 2012 2011 Change

Operating results

Revenues $7,708,382 $7,584,037 1.6%

Income from continuing operations $1,109,528 $1,200,883 (7.6%)

Diluted earnings per share, from continuing operations $5.30 $5.31 (0.2%)

Dividends per common share $1.80 $1.64 9.8%

Page 3: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

(1) Other is comprised of Latin America, Canada and Japan.

U.S. $3.288

Europe $2.379

Asia Pacific $.883

Other(1) $1.159

BD Medical

BD Diagnostics

BD Biosciences

$7.708

At a Glance

Revenue (billions of dollars)*

Revenue by Region (billions of dollars)

$4.091 Revenue

(billions of dollars)*

Medical Surgical Systems $2.105

Pharmaceutical Systems $1.074

Diabetes Care $.911

Customers Served

• Hospitalsandclinics

• Physicians’officepractices

• Consumersandretailpharmacies

• Governmentalandnonprofitpublichealthagencies

• Pharmaceuticalcompanies

• Healthcareworkers

Products

• Needlesandsyringes

• Intravenouscatheters

• Safety-engineeredandauto-disabledevices

• Prefillabledrugdeliverysystems

• PrefilledIVflushsyringes

• Insulinsyringesandpenneedles

• Regionalanesthesianeedlesandtrays

• Self-injectionsystems

• Sharpsdisposalcontainers

• Closed-systemdrugtransferdevices

BDMedicalisamongtheworld’sleadingsuppliersofmedicaldevicesandaleadinginnovatorininjection-andinfusion-baseddrugdeliverysince1906,whentheCompanybuiltthefirst-everfacilityintheU.S.tomanufactureneedlesandsyringes.TheBDMedicalsegmentisfocusedonprovidinginnovativesolutionstoreducethespreadofinfection,enhancediabetestreatmentandadvancedrugdelivery.

BD Medical

*Amounts may not add due to rounding.

Page 4: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

$1.080 Revenue

(billions of dollars)

$2.538 Revenue

(billions of dollars)

Preanalytical Systems $1.301

Diagnostic Systems $1.237

Customers Served

• Hospitals,laboratoriesandclinics

• Referencelaboratories

• Bloodbanks

• Healthcareworkers

• Publichealthagencies

• Physicians’officepractices

• Industrialandfoodmicrobiologylaboratories

Customers Served

• Researchandclinicallaboratories

• Academicandgovernmentinstitutions

• Pharmaceuticalandbiotechnologycompanies

• Hospitalsandreferencelaboratories

• Bloodbanks

Products

• Integratedsystemsforspecimencollection

• Safety-engineeredbloodcollectionproductsandsystems

• Automatedbloodculturingsystems

• Moleculartestingsystemsforinfectiousdiseasesandwomen’shealth

• Microorganismidentificationanddrugsusceptibilitysystems

• Liquid-basedcytologysystemsforcervicalcancerscreening

• Rapiddiagnosticassays

• Platedmedia

• Microbiologylaboratoryautomation

BD MedicalBDDiagnosticsisaleadingproviderofproductsforthesafecollectionandtransportofdiagnosticsspecimens,aswellasinstrumentsandreagentsystemstoaccuratelydetectabroadrangeofinfectiousdiseases,healthcare-associatedinfections(HAIs)andcancers.TheBDDiagnosticssegmentfocusesonimprovinghealthoutcomesforpatientsbyprovidinglaboratorieswithsolutionsthatimprovequality,enhancelaboratorysystemproductivityandinformmedicaldecisions.

BD DiagnosticsBDBiosciencesisaworldleaderinbringinginnovativediagnosticandresearchtoolstolifescienceresearchers,clinicalresearchers,laboratoryprofessionalsandclinicianswhoareinvolvedinbasicresearch,drugdiscoveryanddevelopment,biopharmaceuticalproductionanddiseasemanagement.TheBDBiosciencessegmentisfocusedoncontinuallyadvancingthescienceandapplicationsassociatedwithcellularanalysis.

BD Biosciences

Products

• Fluorescence-activatedcellsortersandanalyzers

• Monoclonalantibodiesandkitsforcellanalysis

• Reagentsystemsforlifescienceresearch

• Cellimagingsystems

• Cellculturemediaandsupplementsforbiopharmaceuticalmanufacturing

Page 5: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

“ Helping all people live healthy livesisaboutsharedvalue:creatingvalueforourshareholdersbystrengtheningthehealthofcommunitiesandaddressingthehealthcarechallengesofsocietiesthroughouttheworld.”

BD Biosciences

Vincent A. Forlenza Chairman, Chief Executive Officer and President

Dear Fellow Shareholders:

It’s a pleasure to write my first letter to you as CEO. First, I want to thank the BD associates around the world for their efforts which were the foundation of a successful year. Their passion for our purpose of “Helping all people live healthy lives” was unabated. While the global business environment remained volatile and challenging in 2012, it did not prevent us from achieving our financial goals while also advancing our strategy, innovation, operating efficiency and talent management programs, which I believe provide a strong platform for future success. We also made some important strategic choices during fiscal year 2012, including the decision to sell the majority of our BD Biosciences – Discovery Labware unit.

Infiscalyear2012,BDreportedrevenuesof$7.708billionanddilutedearningspersharefromcontinuingoperationsof$5.30,bothofwhichmetourexpectationsfortheyear.BDalsoreturned$1.9billiontoourshareholdersthroughacombinationofsharebuybacksanddividends,asweincreasedourdividendforthe40thconsecutivefiscalyear.Ourcashflowfromoperationstotaled$1.7billion,underlyingourstrongfinancialposition.

OurperformancethisyearwasdrivenbystrongperformancesinourBDMedicalandBDDiagnosticssegments.OurBDBiosciencesbusinesscontinuestobeimpactedintheU.S.byanuncertainresearchspendingenvironment.

Ourpipelinecontinuestomatureaswelaunched10newproductsin2012.Internationalsafetyproductsalesgrew10.5%versustheprioryearto$834million.Acquisitionsaddedabout100basispointstoourgrowthasweexperiencedstrongcustomeracceptanceofourBD PhaSeal,BD AccuriandBD Kiestraproducts.

Emergingmarketgrowthwasalsoapositivecontributor,reaching23%ofcompanysales,fueledbyoursecondyearofincreasedinvestment.SalesinChinagrewapproximately24.8%in2012.WealsoseepromisingopportunitiesinIndia,Vietnam,IndonesiaandLatinAmerica.

2012 Annual Report 1

Page 6: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

Our Strategy

Ourstrategyistomakehealthcaremoreeffective,efficientandsaferthroughinnovationinareasthatleveragetheCompany’sclinicalknowledgeandexpertise.Wefocusprimarilyonimprovingparenteraldrugdelivery,includingthemanagementofdiabetes;improvingdiagnostictesting,primarilyforinfectiousdiseaseandcancer;andimprovingtechnologiesthatenableresearcherstounderstandthelivingcellsandtheirfunctions.Weseethisasaglobalmission,collaboratingwithgovernments,non-governmentalorganizationsandotherstakeholderstocreateanddeliversolutionstopressinghealthcarechallenges.Wehelptofundtheseeffortsthrougharelentlessfocusonoperatingeffectiveness.

Webelievetheprinciplesofsharedvaluearefundamentaltoourstrategy.Weprovideessentialvaluetosocietybyhelpingaddressunmethealthneeds,andthisinturnstrengthenstheCompany’sbusinessesandcreatesnewvalueforourshareholders.Theseprinciplesareafoundationfortheworkwedoaroundtheglobe,inbothindustrializedandemergingmarketsettings,includingresource-limitedcountries.Weremaincommittedtosharingthebenefitsofthisstrategythroughareturnofcapitaltoshareholdersviadividendsandsharebuybacks.

Investing for the Future

Inlinewithourbeliefthattechnologysolutionscanreducehealthcarecostsandimprovecare,weinvested$472millioninR&Dandallocated$487millionofcapitaltonewplantsandequipment.Wewerepleasedthatmultiplenewproductandtechnologyprogramsprogressedasplanned.TheBD MAXSystem,alongwithtwoassaysforbacterialinfections,wasapprovedintheU.S.BDBioscienceslaunchedtheBD FACSJazzCellSortingSystem,whichforthefirsttimeoffersanextremely

powerfultoolfortheidentificationandisolationofsingleormultiplecells,evenfromcomplexorextremelyrarecellpopulations,rightfromthebenchtop.TheBD NanoPenNeedle,theworld’ssmallestpenneedle,continuedtofindacceptanceamongpeoplewithdiabeteslookingforabetterinjectionexperience.WealsomadeprogressonourinfusioncollaborationwiththeJuvenileDiabetesResearchFoundation(JDRF)andinitiatedasecondcollaborationtodevelopacontinuousglucosesensor.

Wecomplementedourinternalinnovationprogramswithstrategicacquisitions,includingKIESTRALabAutomation.ThecombinationofBD’sbroadportfolioofmicrobiologyplatforms,reagentsandsupplieswithKIESTRA’sautomatedinstrumentationtechnologieswillprovideuswiththetechnologicalfoundationtoofferinnovativetotallabautomationsolutionstohospitalsandlaboratoriesworldwide.WealsoacquiredSirigenGroupLimited,amakerofflow

cytometrydyes,whichwebelievewillenablemorecomplexexperimentsandfasterresultsforourcustomers.

Webelievethatthehealthcareenvironmenthasfundamentallychangedinthedevelopedworld.Evenwhentheglobaleconomyimproves,weexpectconsumersandgovernmentstocontinuetobemorediscerningbuyersofhealthcare.Howarewemeetingthischallenge?First,wehaveredirectedmoreofourR&Dspendawayfromlineextensionsandtowardprogramsthatwillhaveagreaterimpactonimproving

patientoutcomesandtheefficiencyofhealthcare.Second,wearealsoextendingourreachintolower-pricedemergingmarketsegmentswithmoreprice-competitiveproducts,suchasthenewhigh-quality,low-costBD EmeraldSyringeline.Third,wearedrivinghardtolowerourcosts.IamproudtosaythatourReLoCocostreductionprogramsachievedtheirmilestonesduringfiscalyear2012.Weexpecttorealizeincrementalnetcostsavingsof$40to$50millioninfiscalyear2013.

Dividends Paid vs. Shares Repurchased($ millions)

SHARES REPURCHASED

DIVIDENDS PAID

$550

$317

$750

$1,500 $1,500

$346 $361 $368

2012201120102009

“ We have redirected more of our R&D spend…toward programs that will have a greater impact on improving patient outcomes and the efficiency of healthcare.”

2 BD

Page 7: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

BD Medical

Manypeoplewithdiabetesarehesitantorunwillingtogivethemselvesinsulininjectionsforreasonsincludingneedleanxiety.TheBD Ultra-Fine NanoPenNeedlewithPentaPointComfort,BD’slatestadvancementininjectioncomfort,isapatented5-bevelneedletipdesignthatcreatesaflatter,thinnersurfacetohelppenetratetheskinwithsignificantlygreaterease.Thiswillhelpenablepatientstoadheremoreeasilytotherapyregimensrecommendedtoimprovetheiroutcomes.

BD Diagnostics

Microbiologylabsarefacingunprecedentedchallengeswhiletheneedforfasterdeliveryofmoreaccurateresultsisincreasingtoensureoptimalpatientcare.ThroughouracquisitionofKIESTRA,theleaderinTotalLabAutomation,wehaveexpandedourmicrobiologyportfoliotoincludenewautomatedinstrumentationtechnologiesthatwillenableustoofferinnovativetotallabautomationsolutionstolaboratoriesworldwide.

BD Biosciences

Today,scientistsfamiliarwithflowcytometrychoosedyesbasedonthenumberofsurfacereceptorsonthecellstheyarestudying,aswellastheirbrightness.WeacquiredSirigenanditspolymerdyes,whichhavethepotentialtoaddcolorchoicesandsimplifyflowforbothexpertandnoviceusers.Thesenewtechnologiesenableadeeperlevelofbiologicalstudywithmoreandbrightercolorchoicesforcomplexmulticolorflowexperiments.

BD Innovations

Also,in2012wesuccessfullyimplementedthefirstwaveofEVEREST,ournext-generationenterpriseresourceplanningsystem,atanumberofU.S.sites.Workhasbegunattheremainingsites,andweexpecttocompletethenextsetofimplementationsinthefallof2013,withtheprogramfinishinginmid-2014.EVEREST,alongwithournetworkofsharedservicecenters,willprovideuswiththesystemstomeetthecostandoperatingchallengesofanincreasinglyglobalcompany.

Environmental Performance

Iampleasedtoreportcontinuedprogressthisyearinsustainableoperationsandproductstewardship,whicharethefocusofBD’senvironmentalsustainabilitystrategy.Oursitesaroundtheworldhavereducedenergy,waterandwaste,contributingtoprogressagainstour2015SustainabilityTargets.

Wecurrentlyuse35%renewableenergyinouroperations,exceedingour2015renewableenergygoal,andwehavereducedenergyconsumptionby13%indexedtocostofgoodssoldagainstourgoalof30%.Whencombinedwithourrenewableenergyuse,thishasresultedina21.6%(absolute)reductioningreenhousegasemissions.Inaddition,wereducedhazardouswasteby44%indexedtocostofgoodssold,farexceedingouroriginalgoalofa10%reduction.

BDisalsoproudtohavebecomeaWindMadeTMPioneerCompanythisyear.WindMadeisthefirstconsumer

labelingprogramtocertifycompaniesthatsourceatleast25%oftheirpowerfromwindenergy.AsaPioneerCompany,BDisamonganelitegroupoforganizationssupportingthelabel,whichwillhelpusmoreeffectivelycommunicateourrenewableenergyusetocustomersandcompanystakeholders.Justrecently,BDreceivedtheWindMadeTMlabelforourglobaloperations,certifyingthat35%ofourtotalelectricityuseisfromwindpower.WeinviteyoutoreadmoreaboutourcommitmenttosustainabilityinBD’sSustainabilityReportatwww.bd.com/sustainability.

“ We received the WindMadeTM label for our global operations, certifying that 35% of our total electricity use is from wind power.”

2012 Annual Report 3

Page 8: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

Global Health

Often,thewaytomakeasignificantdifferenceinaddressingglobalhealthcareneedsisthroughcollaborationswithorganizationsthathavecomplementaryskills,expertiseandresources.Thisyear,wecollaboratedwithHearttoHeartInternational,ahumanitarianmedicalaidnonprofitorganization,forasecondjointvolunteerinitiativetostrengthenhealthcareinHaiti.WealsocollaboratedwithDirectReliefInternationaltovaccinatethreemillionHaitianchildrenformeasles,rubellaandpolioinacampaignestablishedbyHaiti’sMinistryofHealth.BDprovidedmorethan1.7millionauto-disableimmunizationsyringesand150,000sharpsdisposalcontainers.

InJuly,weannouncedanewcollaboration,Labs for Life,withtheU.S.President’sEmergencyPlanforAIDSRelief(PEPFAR),throughtheOfficeoftheU.S.GlobalAIDSCoordinatorandtheU.S.CentersforDiseaseControlandPrevention(CDC).ThegoalistohelpstrengthenhealthcareandlaboratorysystemsincountrieshighlyimpactedbytheHIV/AIDSepidemic.Valuedat$20million,thiscollaborationbuildsonapriorfive-yearpublic-privatepartnershipbetweenBDandPEPFARthatfocusedonimprovingoveralllaboratorysystemsandservicesintargetedsub-SaharanAfricancountries.ThisnewcollaborationwillfocusitsinvestmentsinUganda,Kenya,Ethiopia,

MozambiqueandIndia.OurongoingworkwithPEPFARhasdemonstratedhowtheprivatesector,inpartnershipwithgovernments,caneffectivelyapplyitstechnologiesandexpertisetohaveapositiveimpactonhealthcareintheregionsmostheavilyburdenedbyinfectiousdisease.

IntheU.S.,wecollaboratedwiththeAssociationforProfessionalsinInfectionControlandEpidemiology(APIC),throughtheHeroesofInfectionPreventionAwardprogramandtheHeroesImplementationResearchScholarAward.Webelievethatsupportingresearchandlearningwillhelpensurethatthelargerinfectionpreventioncommunityhastheabilitytoreplicatebestpracticesinabroadrangeofhealthcaresettings.

Executive Appointments

Wewereverypleasedtopromotetwonewregionalleaderstoourexecutiveteamthisyear:AlexConroy,PresidentforEurope,EMA(EasternEurope,MiddleEastandAfrica)andtheAmericas,andJamesLim,PresidentforGreaterAsia.AlexandJamesbringin-depthknowledgeoftheseregions,andtheirinsightswillenableustoacceleratetheglobalizationofBD.Additionally,NabilShabshab,whojoinedusinlate2011asourSeniorVicePresidentandChiefMarketingOfficer,ismakingexcellentprogressdrivingcustomerinsightsmuchdeeperintoourplanning,developmentprogramsandgo-to-marketefforts.

Key Board Developments

WeareextremelypleasedtowelcomeRebeccaRimel,PresidentandChiefExecutiveOfficerofThePewCharitableTrusts,toourBoardofDirectors.ShebringstoBDauniqueblendofbroadpublicpolicyexpertise,philanthropicleadershipandastronghealthcarebackground.ShehasalreadybeenanassettotheBoard.

IwouldliketothanktheBoard,andinparticularmypredecessor,EdLudwig,whoretiredthisyear,fortheirguidanceandsupportduringthisexecutivetransition.Whileachangeinleadershipissignificantinanycompany,Ed’sretirementmarkedonlythesixthtimeinBD’s115-yearhistorythatwehavetransitionedCEOs.I’mverygratefultoEd,asamentorandafriend,forhishelpinpreparingmeandtheCompanyforthistransition.

In Closing

AtBD,weunderstandthatourgreatestassetisthetrustweearn,byfulfillingourcommitmentsandbeingtruetoourpurposeofHelping all people live healthy livesanddoingsoinaccordancewithourCoreValues.Weknowwedonotoperatealoneandweappreciatethesupportofourpartners,customersandshareholders.Healthcaresystemsandpatientsallovertheworldarefacingmajordifficulties.Webelievewecanhelp.Ibelievewehavetherightstrategyandwearebuildingtherightcapabilitiestodoourparttoimprovehealthcareglobally.

Thankyoufortheopportunitytoleadthisgreatcompany.

Vincent A. Forlenza Chairman,ChiefExecutiveOfficerandPresident

4 BD

Page 9: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

BD Around the World

North America » New East Coast Distribution Center opens in Four Oaks, North Carolina.

» The BD Veritor System for rapid detection of Flu A+B delivers very good analytical sensitivity and specificity.

» In the U.S., BD offers BD Ultra-Fine Nano 4mm Pen Needles with PentaPoint Comfort.

» In the U.S., BD is donating insulin syringes and pen needles through Direct Relief to community health centers and free clinic partners.

South America » The new BD Emerald Syringe product portfolio combines high-quality performance with a design that uses up to 30% less material than other syringes.

» In collaboration with the National Cancer Coalition, BD has committed to give 75,000 underserved Peruvian women access to BD SurePath liquid-based cytology tests over the next three years.

Europe » The new safety-engineered BD Vacutainer Eclipse Signal Blood Collection Needle is now available.

» The BD MAX MRSA Assay has launched in Europe.

» New European Shared Service Center opened in Poland.

Africa » BD, the Kenya Ministry of Medical Services and PEPFAR launched the Center for Excellence in Phlebotomy and Specimen Collection at the Kenya Medical Training College.

» Tanzania Initiative for Blood-Drawing Applications (TIBA), a multi-year BD collaboration with PEPFAR, aims to train healthcare workers to improve blood draw practices; expands needlestick injury prevention, surveillance and post-exposure management; and provides a framework to improve policies, guidelines and standard operating procedures.

Asia Pacific » New R&D Center opened in India as part of BD’s efforts to accelerate innovation to develop new products.

» Public-private collaboration initiated in China to strengthen prevention and control of healthcare-associated infections.

2012 Annual Report 5

Page 10: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

FORTUNE is a registered trademark of Time Inc. and is used under license. From FORTUNE Magazine, March 19, 2012 © 2012 Time Inc. FORTUNE and Time Inc. are not affiliated with, and do not endorse products or services of, Licensee.

From Forbes, September 24, 2012 © 2012 Forbes. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

12 13

MOSTINNOVATIVECOMPANIES

2012/13

2012

Corporate Sustainability

» World’sMostEthicalCompanies—EthisphereCouncil,

sinceinauguralyearin2007

» World’sMostAdmiredCompanies—FORTUNE

» DowJonesSustainabilityWorldIndex,since2006

» DowJonesSustainabilityNorthAmericanIndex,since2005

» FTSE4GoodIndex,since2003

Innovation

» World’sMostInnovativeCompanies—Forbes

» NewJerseyTechnologyCouncil—PublicCompany

oftheYear

» NewJerseyInventorsHallofFame—CorporateAward

Employer of Choice

» BestEmployersforHealthyLifestyles—NationalBusinessGrouponHealth(U.S.)

» BestEmployers™SouthAfrica—CorporateResearch

FoundationInstitute

» BestPlacestoWorkinNewJersey—NJBIZ,since2005

» CEOCancerGoldStandard™Accreditation

» EmployerofChoiceforWomeninAustralia—EqualOpportunityforWomenintheWorkplace

Environment, Health and Safety

» U.S.EPAGreenPowerPartnershipMember—2012LeadershipClub

» GreenRankings—Newsweek

» WindmadeTM—PioneerCompany

» ChampionforChangeEnvironmentalExcellenceAward—PracticeGreenhealth

» U.S.EPASmartWay®TransportPartner—Member

2012 Awards, Recognitions and Affiliations

6 BD

Page 11: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

Thegraphbelowpresentsacomparisonofcumulativetotalreturntoshareholdersforthefive-yearperiodendedSeptember30,2012forBD,theS&P500IndexandtheS&P500HealthCareEquipmentIndex.

Cumulativetotalreturntoshareholdersismeasuredbydividingtotaldividends(assumingdividendreinvestment)pluspersharepricechangefortheperiodbythesharepriceatthebeginningofthemeasurementperiod.BD’scumulativeshareholderreturnisbasedonaninvestmentof$100onSeptember30,2007andiscomparedtothecumulativetotalreturnoftheS&P500IndexandtheS&P500HealthCareEquipmentIndexoverthesameperiodwithalikeamountinvested.

Sep 07

June

08

June

09

June

10

Dec 07

Mar

08

Sep 08

Dec 08

Mar

09

Sep 09

Dec 09

Mar

10

Sep 10

Dec 10

Mar

11

June

11

Sep 11

Dec 11

Mar

12

June

12

Sep 12

Becton, Dickinson and Company S&P 500 Index S&P 500 Index Health Care Equipment Index

Dollars

0

50

100

150

*Source: Standard & Poor’s

COMPARISON OF 5-YEAR CUMULATIVE TOTAL RETURNAMONG BECTON, DICKINSON AND COMPANY, THE S&P 500 INDEX,

AND THE S&P 500 HEALTH CARE EQUIPMENT INDEX*

Corporate InformationAnnual MeetingTuesday,January29,2013–1:00p.m.HiltonShortHills41JohnF.KennedyParkwayShortHills,NJ07078

This annual report is not a solicitation of proxies.

Transfer Agent and RegistrarComputershareTrustCompany,N.A.250RoyallStreetCanton,MA02021Phone:1-877-498-8861International:1-781-575-2726Internet:www.computershare.com

Direct Stock Purchase PlanTheDirectStockPurchasePlanestablishedthroughComputershareTrustCompany,N.A.,enhancestheservicesprovidedtoexistingshareholdersandfacilitatesinitialinvestmentsinBDshares.PlandocumentationandadditionalinformationmaybeobtainedbycallingComputershareTrustCompany,N.A.,at1-877-498-8861,orbyaccessingthe“Buystockdirect”featurelocatedwithintheInvestorCentreofComputershare’swebsiteatwww.computershare.com.

NYSE Symbol: BDX

Independent AuditorsErnst&YoungLLP5TimesSquareNewYork,NY10036-6530Phone:1-212-773-3000Internet:www.ey.com

Shareholder InformationAtNovember9,2012,BDhad8,676shareholdersofrecord.BD’sStatementofCorporateGovernancePrinciples,BD’sCodeofConduct,thechartersofBD’sCommitteesoftheBoardofDirectors,BD’sreportsandstatementsfiledwithorfurnishedtotheSecuritiesandExchangeCommissionandotherinformationarepostedonBD’swebsiteatwww.bd.com/investors.

Shareholders may receive, without charge, printed copies of these documents, including BD’s 2012 Annual Report on Form 10-K, including the financial statements and related schedules, by contacting:InvestorRelationsBD1BectonDriveFranklinLakes,NJ07417-1880Phone:1-800-284-6845Internet:www.bd.com

The trademarks indicated by italics are the property of Becton, Dickinson and Company, its subsidiaries or related companies. © 2012 BD

All other brands and logos represented herein are trademarks of their respective owners.

2012 Annual Report 7

Page 12: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

Corporate OfficersVincent A. ForlenzaChairman,ChiefExecutiveOfficerandPresident

Pierre BoisierSeniorVicePresident,Quality

Donna M. BolesSeniorVicePresident,HumanResources

Gary M. CohenExecutiveVicePresident

Alexandre ConroyPresident,Europe,EMAandtheAmericas

Gary M. DeFazioVicePresidentandCorporateSecretary

John E. GallagherVicePresidentandTreasurer

David W. HighetVicePresidentandChiefIntellectualPropertyCounsel

William A. KozyExecutiveVicePresidentandChiefOperatingOfficer

James LimPresident,GreaterAsia

Richard J. NaplesSeniorVicePresident,RegulatoryAffairs

Wiliam E. RhodesSeniorVicePresident,CorporateStrategyandDevelopment

Patti E. RussellVicePresidentandChiefEthicsandComplianceOfficer

Antoinette F. SegretoVicePresident,Tax

Nabil ShabshabSeniorVicePresidentandChiefMarketingOfficer

Jeffrey S. ShermanSeniorVicePresidentandGeneralCounsel

Stephen Sichak, Jr.SeniorVicePresident,IntegratedSupplyChain

Suketu UpadhyayActingChiefFinancialOfficer,SeniorVicePresidentandController

Board of DirectorsBasil L. Anderson1,2,4

RetiredViceChairman—Staples,Inc.

Henry P. Becton, Jr.3,4,5

ViceChairmanandformerPresident—WGBHEducationalFoundation

Edward F. DeGraan2,3,4

RetiredViceChairman—GilletteProcter&GambleCompany

Vincent A. Forlenza4

Chairman,ChiefExecutiveOfficerandPresident

Claire M. Fraser, Ph.D.3,5

Director—InstituteofGenomeSciences,UniversityofMarylandSchoolofMedicine

Christopher Jones1,5

RetiredChiefExecutiveOfficer—JWTWorldwide

Marshall O. Larsen1,2

RetiredChairman,PresidentandChiefExecutiveOfficer—GoodrichCorporation

Adel A. F. Mahmoud, M.D., Ph.D.3,5

Professor,DepartmentofMolecularBiologyandtheWoodrowWilsonSchoolofPublicandInternationalAffairs—PrincetonUniversity

Gary A. Mecklenburg1,5

RetiredPresidentandChiefExecutiveOfficer—NorthwesternMemorialHealthCare

James F. Orr 1,2,4

RetiredChairmanandChiefExecutiveOfficer—ConvergysCorporation

Willard J. Overlock, Jr.2,3,4

RetiredPartner—Goldman,Sachs&Co.

Rebecca W. Rimel1,5

PresidentandChiefExecutiveOfficer—ThePewCharitableTrusts

Bertram L. Scott1,2

PresidentandChiefExecutiveOfficer—AffinityHealthPlan

Alfred Sommer, M.D., M.H.S.3,4,5

ProfessorofInternationalHealth,EpidemiologyandOphthalmology—JohnsHopkinsUniversityMedicalSchoolandBloombergSchoolofPublicHealth

Committees appointed by the Board of Directors

1– Audit Committee 2– Compensation and Benefits Committee 3– Corporate Governance and Nominating Committee 4– Executive Committee 5– Science, Innovation and Technology Committee

8 BD

Page 13: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

Printing Information*To conserve resources and limit environmental impact, the content of this printed report has been printed on Mohawk Silk Loop, an FSC-certified paper that is made using renewable energy. Compared to a standard paper stock,this paper represents the following environmental savings:

84trees preserved for the future

243 lbswater-borne waste not created

35,815 galwastewater flow saved

3,963 lbssolid waste not generated

7,802 lbs netgreenhouse gases prevented

59,720,150 BTUsenergy not consumed

22,081 lbs ghgemissions not generated

9,053 windpower savings13,028 carbon offset savings

24 barrelsfuel oil unused

10 windpower savings24 carbon offset savings

equivalent to not driving

2 mi 1 windpower savings1 carbon offset savings

equivalent to planting

1,502 trees 618 windpower savings886 carbon offset savings

*Source: Mohawk Fine Papers Inc.

Page 14: 2012 Annual Report · in bringing innovative diagnostic and research tools to life science researchers, clinical researchers, laboratory professionals and clinicians who are involved

1 Becton DriveFranklin Lakes, NJ 07417www.bd.com