Becton Dickinson and : 2021 Annual Report

Made for what's next in health

Annual Report 2021

BD associates have a passion and commitment to help improve outcomes by advancing clinical therapy for patients, optimizing clinical processes for healthcare providers and enhancing safety for patients and healthcare workers.

Approximately Serving

75,000 190+

associatescountries

Tom Polen

Chairman, Chief Executive Officer and President

Made for what's next in health.

"Ultimately, the health of our company, our planet, our communities and the people we serve are directly connected, and when we successfully address the health of one, we often solve for challenges in another."

To our shareholders, customers and associates

BD has always been driven by one purpose: advancing the world of health™. With solutions concentrated in three essential and integrated areas of the care delivery process - Discovery and Diagnosis, Medication Delivery, and Interventional Treatment - our customers look to us for new and improved solutions to their greatest challenges. Over the past two fiscal years, the central role of BD in the global healthcare continuum has never been more clear.

We are proud of our many contributions toward the diagnosis, treatment and prevention of COVID-19. As we move ahead, our ability to make a positive impact has left us with deeper relationships with our customers, stronger government partnerships, expanded instrument footprints and new markets - like in-home diagnostics - that we can continue to build upon in the years ahead.

Fiscal 2021 results

Over the past fiscal year, we built momentum through solid execution and the outcome is visible in our performance and progress. We exceeded our revenue, EPS and cash flow expectations, all while strengthening our impact and strategic position.

We also took a series of actions to create recurring and long-term value for shareholders. For example, we have increased our investment in R&D, including establishing a Growth and Innovation Fund, and increased the number of tuck-in acquisitions that have strong potential to create value over the long term. We improved cash flow, which was up $1.1 billion dollars in fiscal 2021. We strengthened our balance sheet, putting BD in a good position to drive shareholder value. This includes restarting our share repurchase program and raising our dividend for the 50th consecutive year. Returning capital to shareholders will remain a key component of our capital allocation framework.

We activated programs to drive stronger margins across our procurement, manufacturing, supply chain and internal cost structure, as well as strategic pricing actions across our portfolio. While every industry is currently contending with inflationary pressures, for BD, this isn't simply a matter of managing through this challenge - we intend to be a leader in how we navigate this unprecedented environment.

As part of our portfolio strategy, we announced the planned spinoff of our Diabetes Care business in May - a bold step to simplify the BD portfolio and create value for all stakeholders. We expect the spinoff to be completed in the second quarter of calendar year 2022, strengthening the growth profile of both BD and the new company, which will become one of the largest pure-playdiabetes-focused businesses.1

A resilient strategy for long-term growth

Our BD 2025 strategy is our True North for delivering value for all stakeholders, and it is built around three pillars: Grow, Simplify and Empower. We have programs to catalyze each element of our strategy, from our organic and inorganic innovation pipelines, to how we work with our customers, how we deliver efficiencies and margin expansion, and how we engage with the world around us.

1 The spinoff of the Diabetes Care business is subject to final approval by the BD Board of Directors and the effectiveness of a Form 10 registration statement filed with the SEC.

Since launching the strategy, we have strengthened our long- term targeted growth profile through a series of bold decisions and actions, such as increasing organic innovation, geographic expansion and tuck-in M&A to drive growth. We also took action to optimize our R&D portfolio so we can invest even more in the innovations that will have the greatest impact on our strategy.

We view our portfolio along two axes: our durable core and our transformative solutions. Our durable core consists of the products and solutions in attractive categories with strong growth that form the backbone of healthcare around the world. These are the things that spring to mind when you think of BD, like Vacutainer® tubes, ports, catheters, syringes, urinary catheters, acute care pumps and IV sets, hernia mesh and blood culture testing, just to name a few. The ubiquity of BD devices in the healthcare setting creates a very stable business that weathers storms and uncertainty.

We're also increasingly impactful to our customers due to core innovations we are continually bringing to market. One such example is in vascular access, where we are seeking to redefine the standard of care with a focus on the patient experience - a vision we call the "One Stick Hospital Stay" - which would leverage our fiscal 2021 acquisition of Velano Vascular and new imaging innovations to help eliminate multiple needlesticks for inpatient blood sample collection.

Our best-in-class manufacturing and distribution capabilities allow us to deliver quality products at low cost in more than 190 countries around the world. We're also fueling growth through our broad and unrivaled digital capabilities, reflected by the 2 million BD smart devices on the market today and the more than 2,000 software engineers and data scientists on our team.

The consistent performance of the durable core fuels our investments in transformative solutions - the breakthrough advances in higher-growth spaces where we are directing the majority of our R&D and M&A investments. The future of healthcare is changing as providers seek new ways to enhance patient outcomes, expand access, reduce costs and improve the work life of healthcare providers. I see this giving rise to three irreversible forces that are going to be shaping healthcare in new ways:

Smart Connected Care - AI, informatics and robotics will transform healthcare processes, tools and treatments. BD is focused in categories that are growing nearly twice as fast as our durable core, and we're leveraging our technical expertise to make new, smarter devices, increase automation and informatics in laboratories, and develop more-connected medication management solutions. Automation and smart technology are particularly suited to help address the shortage of healthcare workers, a reality that is accelerating interest in solutions like these.

New Care Settings - Care is moving increasingly to surgery centers, ambulatory centers and retail clinics - and all the way into the home - creating significant opportunities for BD to reinvent solutions that will improve patient outcomes in those settings, while lowering costs. We are focused in fast-growing categories where we're addressing areas like blood collection and diagnostics at the point of care, non-acute medication management, self-administered drug delivery and the home incontinence market.

Chronic Disease Outcomes - BD has tackled infectious disease throughout our history, and we will continue to do so. However, improving outcomes in chronic diseases is a leading global health priority, and one that has traditionally fallen to the pharmaceutical industry and treatment through medication. In the medical device industry, we are entering an era of technological innovation that will allow us to step up in a meaningful way to impact chronic disease treatment more than ever before. At BD, we're developing new solutions for chronic conditions like peripheral vascular disease and end-stage kidney disease, while innovating in the tissue regeneration and reconstruction space and molecular diagnostics.

These three trends create tremendous opportunity for innovation, and they will be the catalysts for the ability of health systems

to achieve better outcomes for the next 10 years. BD is uniquely positioned to help our customers on this journey.

We've already made progress shifting our portfolio mix into these higher-growth spaces by reallocating our R&D spend. And we have made sure those investments yield results, with products launching on schedule and delivering as planned. R&D isn't

the only lever we can pull to move into higher-growth markets; we're also driving our tuck-in M&A strategy to a new level, closing seven transactions in fiscal 2021 alone. Some of these reinforce our durable core, like Velano Vascular and ZebraSci. Others are transformative solutions, like our acquisition of GSL Solutions, which brings smart connected devices to better manage medications in the retail setting, or our acquisition of Tepha, which targets improved outcomes in chronic disease through a proprietary bioabsorbable polymer that reconstructs tissue in a range of conditions. About 80 percent of the capital we've deployed towards M&A over the last two years has been in transformative solutions and advancing the three innovation themes mentioned above.

An emphasis on ESG

As a purpose-driven organization with global health impact and a strong set of values, behaviors and commitments - what we call The BD Way - an emphasis on environmental, social and governance (ESG) issues is central to our identity as a good

corporate citizen. We have been recognized by experts for our	and develop in their careers, and bring their best and most
impact, and we are continuing to advance our commitments	innovative thinking. I'm especially proud of the results of our
through our 2030+ sustainability goals and our ESG strategy.	Voice of Associates survey this year, where we improved in 95
Given our manufacturing presence, we are especially proud	percent of the metrics we track, making the biggest advances
in building a speak-up culture, having a growth mindset and
to highlight our initiative to be carbon neutral across direct
fostering a quality culture.
operations by 2040 and to reduce Scope 3 greenhouse gas
emissions in line with 1.5⁰ Celsius emissions scenarios by 2050.	Ultimately, the health of our company, our planet, our
Equally important, we are committed to the wellbeing of our	communities and the people we serve are directly connected, and
global team, fostering an inclusive work environment where	when we successfully address the health of one, we often solve
people can be themselves, feel comfortable speaking up, grow	for challenges in another.

47+Values in this exhibit reflect rounded numbers in billions of dollars.3 *Effective October 1, 2019, the Preanalytical Systems and Diagnostic Systems units

FY21 revenue by segment

l

BD Medical

$9.5

35

a

Medication Delivery Systems

$4.1

on

i

t

n

19

e

Medication Management Solutions

$2.

v

r

e

t

9

n

Diabetes Care

$1.2

B

D

I

Pharmaceutical Systems

$1.8

B

$20.2

D

BD Life Sciences

$6.5

1041 14

M

e

Integrated Diagnostics Solutions*

$5.2

d

i

c

Biosciences

a

$1.3

l

s

Total BD revenue

BD Interventional

$4.2

13

e

c

Peripheral Intervention

$1.7

n

e

i

c

Surgery

$1.3

10

S

e

f

9

i

L

Urology and Critical Care

$1.2

D

B

were joined to create the new Integrated Diagnostic Solutions unit.

Looking ahead to fiscal 2022

We are firmly on track for substantial, sustained value creation as we continue to build a company that has a future durable core portfolio of smart and connected devices, that is a market leader in new care settings, and that is known for the tremendous impact it is having on improving outcomes in chronic disease. Our long-term growth strategy isn't theoretical - we have clear plans in place and it is happening right now.

And with the help of a dedicated and passionate global team more than 75,000 associates strong, we are committed to executing our plans and broadening our legacy of impactful, transformative innovation as we reinvent the future of healthcare for the benefit of patients, customers and shareholders worldwide.

As always, thank you for your unwavering support of our vision.

Tom Polen

Chairman, Chief Executive Officer and President