ADVANCING CONNECTED CARETM
May 1, 2020
Second Quarter 2020 Financial Results
This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation ReformAct of 1995. All statements included herein that are not historical facts are forward-looking statements, includingwithout limitation statements regarding Hillrom’s ability to drive sustainable profitable growth and shareholder value,the timing and success of new product launches and portfolio expansion, the achievement of long-range financialobjectives, the continuation of stable customer demand trends, a stable U.S. capital environment, the timing andsuccess of M&A and business optimization initiatives, our ability to reduce debt, implementation of our ITtransformation, the impact of tariffs, any change to the one-time impact from U.S. tax reform legislation, and all otherstatements concerning future strategy, plans, objectives, projections, expectations and intentions. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the eventsuch risks or uncertainties materialize, Hillrom’s results could be materially adversely affected. Hillrom’s actual resultsalso could be materially adversely impacted by the length and severity of the recent coronavirus pandemic(“COVID-19,” “the pandemic,” or “the virus”) and related impacts on our business, results of operations, financialcondition and prospects. For a more in-depth discussion of factors that could cause actual results to differ from thosecontained in forward-looking statements, see the discussions under the heading “Risk Factors” in the company'spreviously filed most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. Except asrequired by applicable law or regulations Hillrom assumes no obligation to update or revise any forward-lookingstatements.
Certain financial figures presented herein have been presented on an adjusted basis (non-GAAP). Reconciliationbetween non-GAAP financial measures and reported GAAP financial measures are included in the appendices tothis slide deck.
Hillrom’s results contained herein reflect the new revenue recognition accounting standard, ASC 606, which Hillromadopted on a modified retrospective basis beginning in the fiscal first quarter 2019. All comparisons contained hereinwill include the new standard for the current and prior year periods.
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Forward Looking Statements And Non-GAAP Financial Measures
2
3
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
COVID-19 Response
Q2 2020 Highlights
Q2 2020 Financial Summary
Revenue Schedules
Appendix
1
2
3
4
5
Table Of Contents
4
COVID-19 Response
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Our Mission Has Never Been More Vital
5
“During this unprecedented
and challenging period,
Hillrom’s mission of enhancing
outcomes for patients and
caregivers has never been
more vital. I am extremely
proud of the entire Hillrom
organization, their dedication,
and extraordinary contributions
team members are making to
support our customers as we
fight this pandemic.”
John Groetelaars,
President and CEO
Enhancing Outcomes For Patients And Their Caregivers
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Playing A Pivotal Role In The Global Response
6
Ensuring
Business
Continuity
Pivoting
New Product
Innovation
Increasing
Capacity Of
Critical Products
Supporting
Frontline
Workers
HILLROM’S COVID-19 ACTIONS
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Supporting Frontline Workers
7
Donating ~$6M to hospitals and charities
• Supporting communities by donating critical products to 25 U.S.
hospitals for critical and intensive care units’ fight against COVID-19
• Supporting American Nurses Foundation with $50K cash donation
and Chinese Red Cross with $2M in vital signs monitors
Mobilizing to respond in Crema, Italy
• Partnering Hillrom’s field sales and service teams with hospitals
on the front lines around the world
• Rapidly installing patient monitoring equipment for a field
hospital in Crema, Italy
Supporting response at The Mount Sinai Hospital, New York
• Expediting production and deliveries to critical hospitals, like The
Mount Sinai Hospital in New York City
• Delivering and installing new beds to help clinicians treat the surge
in COVID-19 patients
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Introducing New Product Innovations
8
Pivoting R&D Efforts To Meet COVID-19 Treatment Challenges
Adapting the MetaNeb®
System to reduce cross contamination
Enhancing Connex® Spot Vital Signs Monitor to digitally capture
episodic respiratory rate
Adding remote monitoring and simplified connectivity to Welch Allyn® Spot® 4400
Vital Signs devices
Launching Voalte Extend™, a mobile communication solution for alternate sites of care
Partnering with AgileMD to provide COVID-19 clinical
pathways digitally
Utilizing patient-positioning equipment to offer prone positioning for ventilated and
non-ventilated patients
2x Smart Beds2x Thermometry2x Vital Monitoring Devices
Supporting patients with mild
to moderate respiratory
distress across acute care
settings
9
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Increasing Capacity Of Critical Products
5x Non-InvasiveVentilators
Supporting COVID-19 Response With Increased Supply Of Critical Care Products
Prioritizing manufacturing to
meet increased global demand within the ICU and med-surg
units
Meeting high demand for
diagnosis and treatment of
patients where and when healthcare providers need it
Providing caregivers with the
ability to take quick and accurate vital signs measurement
amid a surge in patients
Life2000®
Non-Invasive Ventilator
SureTemp®
& CareTemp™
Progressa® ICU, Centrella® Smart+, Hillrom® 900 and Accella™ beds
Connex® Vital Signs& Spot Vital Signs®
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Ensuring Business Continuity
10
Implementing Comprehensive And Robust Business Continuity Plans
Manufacturing
• Keeping sites and distribution
channels operational
• Increasing capacity of critical products
• Implementing enhanced safety precautions at facilities
• Meeting customer needs with exceptional service capabilities
• Expanding workforce by adding 300+ employees
Supply Chain
• Ensuring uninterrupted supply while minimizing potential disruption
• Partnering with government agencies, upstream suppliers and 3rd party vendors and logistics providers
• Expediting logistics to meet customer needs
• Assessing critical materials and alternative sources
Employees
• Securing health and safety of all Hillrom employees
• Adhering to government, CDC and WHO guidelines
• Facilitating volunteer efforts of employees
• Working with unwavering commitment to support customers, front-line caregivers and patients
11
Q2 2020 Highlights
12
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Key Takeaways
✓ Hillrom is playing a pivotal role in global
COVID-19 response
✓ Q2 2020 results demonstrate strength of
underlying business portfolio
✓ Portfolio diversity and financial strength allow
focus on advancing strategic priorities
✓ New product innovation is a key pillar to
driving our competitive advantage and
growth strategy
✓ Remain confident in our long-term growth
prospects and adding value to the delivery
of health care
12
Patient
Support
SystemsFront
Line Care
Surgical
Solutions
$2.9BFY 2019
Transforming to drive sustainable profitable growth and shareholder value
InnovationLeadership
2019 Revenue by BusinessUS$ Billions
New Product RevenueUS$ Millions
Key Valuation MetricsAs of 3/31/2020
FY 2018 FY 2019 FY 2020
Outlook
$300M+
Value
$450M+
$550M+
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Global medical technology leader with a diversified portfolio
Advancing category leadership with healthcare solutions
Market
Capitalization
Enterprise
Value
Fiscal YTD 2020
Returned to
Shareholders2
$6.7B $8.6B
$99M-4%LTM Total
Shareholder
Return1
Hillrom: Trusted Medical Technology Innovator
13
Note: Hillrom’s fiscal year end is September 30; 1Includes dividends; 2Includes dividends and share repurchases
Driving operational execution and strong financial performance
• Delivering +6% core revenue* growth, the 8th consecutive quarter of mid-single digit growth
• Exceeding adjusted EPS guidance range of $1.14 to $1.16 with adjusted EPS of $1.28 (+12%)
Expanding internationally and penetrating emerging markets
• Improving performance as COVID-19 demand offsets impact from timing of large capital projects
• Delivering double-digit growth in Canada, Latin America and Asia Pacific (including China)
Transforming the portfolio with select M&A and optimization initiatives
• Partnering with AglieMD to provide up-to-date COVID-19 clinical pathways to caregiver workflows
• Completing Excel Medical acquisition to improve clinical workflows and real-time waveforms
Advancing category leadership with differentiated solutions and innovation
• Introducing a spectrum of new product innovations to meet treatment challenges of COVID-19
• Doubling production of critical care products and 5-fold increase of Life2000 NIV ventilators
Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the
appendix to this presentation; NIV = non-invasive; *Core revenue excludes foreign currency, divestitures and non-strategic assets the
company may exit, including Surgical Solutions international OEM business © 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Enhancing Shareholder Value By Executing Our Strategy
Hillrom: Strategic Priorities
14
For “Sustainable
Procurement”
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Promoting Excellence In The Workplace
15
Dave Thomas Foundation
Award Recognizes
Adoption Benefits
American Heart
Association Workplace
Health Achievement
Award
(Gold Level)
Silver Cradle Award
Recognizes
Adoption Benefits
Great Place to Work
Award2
1Awarded in Mexico; 2Awarded in France
Diversity & Inclusion
Award1
Newsweek’s
America’s Most
Responsible
Companies
The Corporate Board
Initiative Acknowledges
the Advancement of
Women on Boards
For Gender Diversity
on Hillrom’s Board of
Directors
For “Sustainable
Procurement”
Diversity & Inclusion
Award1
16
Q2 2020 Financial Summary
YTD 2019 YTD 2020
OperatingCash Flow
Q2 2019 Q2 2020
Global Revenue
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
17
Delivering Strong Q2 Core Revenue And Adjusted EPS Growth
Q2 2019 Q2 2020
Adj. Earnings Per Diluted Share
$714M$1.14
$1.28 $157M$158M$723M
+6%Core*
GrowthGrowth
flatGrowth
Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the
appendix to this presentation; *Core revenue excludes foreign currency, divestitures and non-strategic assets the company may exit,
including Surgical Solutions international OEM business
+19%Ex. Divestiture
+12%Reported
Q2 2020 Financial Results
Fiscal Second Quarter
Adjusted P&L 2019 2020YOY
Change
Revenue $714M $723M
Gross Margin 49.4% 51.2% +180 bps
Operating Margin 16.4% 18.3% +190 bps
Adjusted EPS $1.14 $1.28 +12%
+2%constant currency
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Q2 2020 Financial Results
Achieving Strong Q2 Performance And Exceeding Adjusted EPS Guidance With Double-Digit Growth
Note: Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported GAAP numbers in the
appendix to this presentation; *Core revenue excludes foreign currency, divestitures and non-strategic assets the company may exit,
including Surgical Solutions international OEM business
18
+6%core*
growth
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Driving Durable, Sustainable Mid-Single Digit Top-Line Growth For 8 Consecutive Quarters
Core Revenue* Growth
*Core revenue excludes foreign currency, divestitures and non-strategic assets the company may exit, including Surgical Solutions
international OEM business
19
Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020
6%
4%
8%
6%
100+
bps
150+
bps
Core Growth Impact of Acquisitions
2%
6%
2%
4%
6%
~200
bps
6%
~200
bps
Delivering double-digit growth of smart bed systems
Driving improved international performance with strong ICU bed demand
Launching new products including Voalte Extend
Partnering with AgileMDto provide digital COVID-19 clinical pathways
Driving strong U.S. growth across surgical equipment
Achieving double-digit growth of Integrated Table Motion
Offsetting U.S. growth with impact from timing of large international capital projects
Exiting lower margin non-core revenue
Achieving high single-digit growth rate in 1H 2020
Accelerating growth of vital signs and thermometry
Ramping key products including 5x increase of Life2000 NIV ventilators
Launching new Spot Vital Signs 4400 device in U.S. and Canada
Patient Support Systems Surgical SolutionsFront Line Care
Q2 2020 Q2 2020 Q2 2020
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Q2 2020 Revenue By Business
Note: All revenue growth rates are constant currency; OUS = outside the United States; *Core revenue excludes foreign currency,
divestitures and non-strategic assets the company may exit, including Surgical Solutions international OEM business
20
+180 bpsGross Margin Expansion
Adjusted Gross Margin
Q2 2019 GM
Expansion
Operating
Expenses
Q2 2020Q2 2019 Product
Mix
Operational
Improvements*
Q2 2020
Adjusted Operating Margin
+140 bps+180 bps
+190 bpsOperating Margin Expansion
+10 bps+40 bps
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Driving Continued Gross Margin Expansion With Positive Product Mix And Operational Improvements
Q2 2020 Margin Expansion
Note: Axis not to scale; Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported
GAAP numbers in the appendix to this presentation; *Includes tariffs and related impact
49.4%
51.2%
16.4%
18.3%
21
$1.28Adjusted Earnings Per Diluted Share
$1.14
$1.28
Q2 2019 Q2 2020
Adjusted EPS GrowthUS$
+12%growth
• Delivering core revenue* growth of +6% including positive contribution from new products, acquisitions and ~$15M net tailwind from COVID-19 demand
• Expanding margins driven by improved product mix and benefits of manufacturing cost and sourcing efficiencies
• Investing in strategic initiatives including IT transformation and emerging markets to drive future growth
• Absorbing approximately $0.06 dilution related to surgical consumables divestiture
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Exceeding Guidance With +12% Adjusted EPS Growth
Q2 2020 Adjusted Earnings Per Diluted Share
Note: Axis not to scale; Adjusted gross margin, operating margin and EPS are non-GAAP measures. See reconciliation to reported
GAAP numbers in the appendix to this presentation; *Core revenue excludes foreign currency, divestitures and non-strategic assets the
company may exit, including Surgical Solutions international OEM business
22
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
23Note: Leverage ratio calculated as Total Debt, divided by EBITDA. EBITDA is calculated as defined in Hillrom’s
compliance certificate under its existing credit facility; Debt maturity based on calendar year; *Reflecting total gross
revolving credit, not reflecting drawdowns
✓ Deploying disciplined approach to M&A
✓ Reducing debt levels; no significant
debt maturity until 2024
✓ Raising quarterly dividend for 10th
consecutive year
✓ Offsetting stock option dilution with
share buy backs
✓ Operating well within debt and interest
leverage covenants
$291MCash And
Cash Equivalents
$1.2BTotal Revolving
Credit*
3.3xDebt-to-EBITDA
Leverage
Balancing Capital Allocation:
Preserving Financial Flexibility To Continue To Invest In Our Strategic Priorities
Maintaining Strong Balance Sheet And Liquidity
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
24
Voalte Breathe Technologies Excel Medical
• Advancing our Advancing Connected Care vision
• Providing real-time insights at point of care
• Integrating Voalte into our digital offering and Care Communications business
• Leveraging strong Hillrom acute care relationships
• Utilizing smart phone platform to enhance clinical workflows
• Addressing growing market needs
• Shifting care closer to home with a
mobile solution
• Strengthening our Respiratory
Health portfolio
• Leveraging existing customer base
and business model
• Adopting NIV therapy drives 91%
compliance within 1 year of
adoption1; may reduce ER visits by
68% and total costs by 79%2
• Expanding our digital health capabilities to improve clinical workflow
• Integrating interoperable solutions within Care Communications
• Accelerating ability to integrate with 3rd party devices
• Enabling our Medical Device Integration (MDI) platform
• Expanding capabilities of real-time waveforms in digital format for reference and trending information
Integrating Businesses And Products That Advance Our Strategy
1Breathe: Health care utilization and respiratory status following the addition of a portable non-invasive open ventilator
to the treatment regimen. Presented at CHEST, 2015.. 2Neil R. MacIntyre, MD. Clinical Chief, Pulmonary/Critical Care
Division. Medical Director, Respiratory Care Services. Professor of Medicine. Duke University.
Transforming The Portfolio With Disciplined M&A
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
25
Fiscal
Q2
Fiscal
Q3
Fiscal
Q4
Preparedness Gradual RecoveryPeak Demand
• Diverse portfolio provides natural hedging
• Record orders and backlog of smart beds exiting Q2 (orders +70% vs. Q1)
• No second wave anticipated in fiscal 2020; long-term outlook for capital purchases is evolving
• No material manufacturing and supply chain operations disruptions
• Expanding capacity remains on track
~60% of RevenueResilient Demand in Near-Term
Specialty beds, vital signs monitors, respiratory care
and other diagnostic tools
~40% of Revenue Reduced Demand in Near-Term
Surgical solutions, care communications, vision care
and other physician-office products
• Anticipate more than 20% decline in fiscal 2H across these categories
• Limited hospital access to complete installations; delays in large capital projects
• Customers considering reduction in non-emergent capital expenditures
• Reduced levels of surgical procedures; fewer physician office visits
Net Impact Depends On Scope, Intensity And Duration Of Pandemic AND Shape Of Recovery In The Demand For Healthcare Globally
Fiscal 2020 Outlook
26
Revenue Schedules
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems 266.6$ 77.6$ 344.2$ 248.1$ 92.9$ 341.0$ 7.5% -16.5% 0.9% 7.5% -14.6% 1.4%
Front Line Care 178.1 76.5 254.6 166.5 66.9 233.4 7.0% 14.3% 9.1% 7.0% 15.1% 9.3%
Surgical Solutions 37.1 49.1 86.2 53.9 55.2 109.1 -31.2% -11.1% -21.0% -31.2% -9.2% -20.0%
Total Hillrom 481.8$ 203.2$ 685.0$ 468.5$ 215.0$ 683.5$ 2.8% -5.5% 0.2% 2.8% -4.0% 0.7%
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems 289.3$ 92.8$ 382.1$ 267.2$ 92.4$ 359.6$ 8.3% 0.4% 6.3% 8.3% 4.1% 7.2%
Front Line Care 179.2 79.0 258.2 170.2 72.9 243.1 5.3% 8.4% 6.2% 5.3% 10.8% 7.0%
Surgical Solutions 38.0 44.9 82.9 55.6 55.9 111.5 -31.6% -19.7% -25.7% -31.6% -17.4% -24.6%
Total Hillrom 506.5$ 216.7$ 723.2$ 493.0$ 221.2$ 714.2$ 2.7% -2.0% 1.3% 2.7% 0.9% 2.2%
Q1 2019 % Growth @ Actual Rates % Growth @ Constant Rates
Q2 2019 % Growth @ Actual Rates % Growth @ Constant Rates
Q1 2020
Q2 2020
2020 Revenue Tables
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.Note: Totals may not add due to rounding
27
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems 248.1$ 92.9$ 341.0$ 241.8$ 90.2$ 332.0$ 2.6% 3.0% 2.7% 2.6% 6.4% 3.7%
Front Line Care 166.5 66.9 233.4 156.4 66.4 222.8 6.5% 0.8% 4.8% 6.5% 3.3% 5.5%
Surgical Solutions 53.9 55.2 109.1 50.9 59.8 110.7 5.9% -7.7% -1.4% 5.9% -5.0% 0.0%
Total Hill-Rom 468.5$ 215.0$ 683.5$ 449.1$ 216.4$ 665.5$ 4.3% -0.6% 2.7% 4.3% 2.3% 3.7%
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems 267.2$ 92.4$ 359.6$ 243.6$ 106.2$ 349.8$ 9.7% -13.0% 2.8% 9.7% -7.2% 4.6%
Front Line Care 170.2 72.9 243.1 163.1 75.0 238.1 4.4% -2.8% 2.1% 4.4% 2.7% 3.8%
Surgical Solutions 55.6 55.9 111.5 54.4 63.2 117.6 2.2% -11.6% -5.2% 2.2% -5.2% -1.8%
Total Hill-Rom 493.0$ 221.2$ 714.2$ 461.1$ 244.4$ 705.5$ 6.9% -9.5% 1.2% 6.9% -3.6% 3.3%
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems 290.8$ 83.7$ 374.5$ 262.1$ 91.2$ 353.3$ 11.0% -8.2% 6.0% 11.0% -4.1% 7.1%
Front Line Care 178.4 66.0 244.4 170.8 69.5 240.3 4.4% -5.0% 1.7% 4.4% -1.4% 2.7%
Surgical Solutions 60.2 47.7 107.9 55.6 54.3 109.9 8.3% -12.2% -1.8% 8.3% -8.1% 0.2%
Total Hill-Rom 529.4$ 197.4$ 726.8$ 488.5$ 215.0$ 703.5$ 8.4% -8.2% 3.3% 8.4% -4.2% 4.5%
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems 328.9$ 86.5$ 415.4$ 290.0$ 86.5$ 376.5$ 13.4% 0.0% 10.3% 13.4% 3.8% 11.2%
Front Line Care 185.5 71.7 257.2 193.6 69.0 262.6 -4.2% 3.9% -2.1% -4.2% 6.5% -1.4%
Surgical Solutions 51.5 58.7 110.2 60.6 59.5 120.1 -15.0% -1.3% -8.2% -15.0% 2.7% -6.2%
Total Hill-Rom 565.9$ 216.9$ 782.8$ 544.2$ 215.0$ 759.2$ 4.0% 0.9% 3.1% 4.0% 4.4% 4.1%
United States International Total United States International Total United States International Total United States International Total
Patient Support Systems 1,135.0$ 355.5$ 1,490.5$ 1,037.6$ 374.1$ 1,411.7$ 9.4% -5.0% 5.6% 9.4% -0.6% 6.7%
Front Line Care 700.6 277.5 978.1 683.8 279.9 963.7 2.5% -0.9% 1.5% 2.5% 2.8% 2.5%
Surgical Solutions 221.2 217.5 438.7 221.5 236.8 458.3 -0.1% -8.2% -4.3% -0.1% -3.8% -2.0%
Total Hill-Rom 2,056.8$ 850.5$ 2,907.3$ 1,942.9$ 890.8$ 2,833.7$ 5.9% -4.5% 2.6% 5.9% -0.4% 3.9%
FY 2019 FY 2018 % Growth @ Actual Rates % Growth @ Constant Rates
Q2 2019 Q2 2018 % Growth @ Actual Rates % Growth @ Constant Rates
Q3 2019 Q3 2018 % Growth @ Actual Rates % Growth @ Constant Rates
Q4 2019 Q4 2018 % Growth @ Actual Rates % Growth @ Constant Rates
Q1 2019 Q1 2018 % Growth @ Actual Rates % Growth @ Constant Rates
2019 Revenue Tables
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.Note: Totals may not add due to rounding
28
($ in millions) Patient Support Systems Surgical Solutions Total Non-Core
U.S. OUS Total U.S. OUS Total U.S. OUS Total
Q1 2020 $0.0 $0.0 $0.0 $0.0 $9.1 $9.1 $0.0 $9.1 $9.1
Q2 2020 $0.0 $0.1 $0.1 $0.0 $10.8 $10.8 $0.0 $10.9 $10.9
Q1 2019 $2.3 $0.4 $2.7 $21.6 $16.1 $37.6 $23.8 $16.5 $40.3
Q2 2019 $2.2 $0.3 $2.5 $21.0 $15.4 $36.4 $23.2 $15.6 $38.9
Q3 2019 $8.0 $0.0 $8.0 $23.3 $14.2 $37.4 $31.3 $14.2 $45.5
Q4 2019 $0.4 $0.0 $0.4 $8.4 $14.0 $22.4 $8.7 $14.0 $22.7
Fiscal 2019 $12.9 $0.7 $13.5 $74.2 $59.6 $133.8 $87.1 $60.2 $147.3
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.Note: Non-core revenue includes divestitures and non-strategic assets the company may exit, including Surgical Solutions international
OEM business; Totals may not add due to rounding
29
2020 & 2019 Non-Core Revenue Including Surgical Consumables
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
Divesting $300M+ Of Annualized Revenue Over Last 5 Years
Winding Down Non-Core Revenue* In 2020
*Core revenue excludes foreign currency, divestitures and non-strategic assets the company may exit, including Surgical Solutions
international OEM business
30
FY 2018 FY 2019 FY 2020
Outlook
FY 2021
Outlook
FY 2022
Outlook
~$210M
~$150M
~$40M
~$0M ~$0M
31
Appendix:Reconciliation Of Non-GAAP Disclosures
Reconciliation: Operating Margin And Earnings Per Diluted Share
© 2020 Hill-Rom Services, Inc. ALL RIGHTS RESERVED.
32
Operating
Margin
Income
Before
Income Taxes
Income Tax
Expense Diluted EPS
Operating
Margin
Income
Before
Income Taxes
Income Tax
Expense Diluted EPS
GAAP Basis 12.1% 56.8$ 9.9$ 0.70$ 11.4% 60.7$ 11.2$ 0.74$
Adjustments:
Acquisition and integration costs and related fair value
adjustments 0.4% 2.7 0.7 0.03 0.2% 1.6 0.3 0.02
Acquisition-related intangible asset amortization 3.7% 27.1 6.6 0.31 3.8% 27.3 6.4 0.30
Field corrective actions 0.2% 1.4 0.4 0.01 - - - -
Regulatory compliance costs 0.7% 4.8 1.2 0.05 0.5% 3.3 0.9 0.04
Special charges 1.2% 8.8 2.3 0.10 0.5% 3.5 0.9 0.04
Pension Settlement Expense 0.0% 8.5 2.0 0.09 - - - -
Litigation Settlement 0.0% (1.2) (0.3) (0.01) - - - -
Adjusted Basis 18.3% 108.9$ 22.8$ 1.28$ 16.4% 96.4$ 19.7$ 1.14$
Operating
Margin
Income
Before
Income Taxes
Income Tax
Expense Diluted EPS
Operating
Margin
Income
Before
Income Taxes
Income Tax
Expense Diluted EPS
GAAP Basis 11.8% 99.4$ 12.7$ 1.29$ 10.9% 110.3$ 18.6$ 1.36$
Adjustments:
Acquisition and integration costs and related fair value
adjustments -0.3% (3.8) 1.0 (0.07) 0.1% 1.8 0.4 0.02
Acquisition-related intangible asset amortization 3.8% 53.8 13.0 0.61 3.8% 53.0 12.3 0.60
Field corrective actions 0.1% 1.4 0.4 0.01 - - - -
Regulatory compliance costs 0.6% 8.7 1.8 0.10 0.5% 6.1 1.6 0.07
Special charges 1.2% 16.6 3.5 0.19 0.8% 11.5 2.8 0.13
Tax law and method changes 0.0% - - - - - 1.0 (0.02)
Debt refinancing costs 0.0% 16.1 3.7 0.18 - - - -
(Gain) Loss on disposition 0.0% 0.4 0.1 0.01 - - - -
Pension Settlement Expense 0.0% 8.5 2.0 0.10 - - - -
Litigation Settlement 0.0% (1.2) (0.3) (0.01) - - - -
Adjusted Basis 17.2% 199.9$ 37.9$ 2.41$ 16.1% 182.7$ 36.7$ 2.16
Quarter Ended March 31, 2019
Year to Date Ended March 31, 2019
Quarter Ended March 31, 2020
Year to Date Ended March 31, 2020