Forward Looking Statements

Transcription

1 2016 OVERVIEW

2 Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future, are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things, deterioration of or instability in the economy, the markets we serve and the financial markets, the impact of our restructuring activities on our ability to grow, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new and enhanced products and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our ability to successfully identify, consummate and integrate appropriate acquisitions and successfully complete divestitures and other dispositions, our ability to integrate the recently acquired Pall Corporation and achieve the anticipated benefits of that transaction, our ability to successfully consummate the separation of Danaher into two public companies and realize the anticipated benefits of that transaction, contingent liabilities relating to acquisitions and divestures, our compliance with applicable laws and regulations (including regulations relating to medical devices and the healthcare industry) and changes in applicable laws and regulations, our ability to effectively address cost reductions and other changes in the healthcare industry, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, risks relating to product, service and software defects, product liability, and recalls, risks relating to product manufacturing, the impact of our debt obligations on our operations and liquidity, our relationships with and the performance of our channel partners, commodity costs and surcharges, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, labor matters, international economic, political, legal compliance and business factors, disruptions relating to man-made and natural disasters, security breaches or other disruptions of our information technology systems and pension plan costs. Additional information regarding the factors that may cause actual results to differ materially from these forwardlooking statements is available in our SEC filings, including our 2014 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of These forward-looking statements speak only as of the date of this presentation and the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. With respect to any non-gaap financial measures included in the following presentation, the accompanying information required by SEC Regulation G can be found in the Investors section of Danaher s web site, under the heading Investor Events, and event name Danaher 2015 Investor & Analyst Meeting. All references in this presentation to earnings, revenues and other companyspecific financial metrics relate only to the continuing operations of Danaher s business, unless otherwise noted. All references in this presentation to growth refer to year-over-year growth unless otherwise indicated.

3 Danaher Family of Brands

4 2015 Highlights Exciting year with the team executing well in a challenging environment Announced 2016 separation into two, independent, publicly traded companies, Danaher and Fortive $13.5B acquisition of Pall, largest in our history Disposition of Communications businesses to NetScout Announced 13 other acquisitions for $1B DBS helped deliver core growth, margin expansion and share gains across the portfolio Core growth 3.0% Core OP margin expansion 75 bps Record free cash flow ~$3.2B Pall and separation provide expanded opportunity and renewed focus for driving future results Well positioned for outperformance in 2015 and beyond

5 20-Year Total Shareholder Return DHR vs. S&P DHR S&P 500 Difference 3 Year 68.3% 52.6% 15.7% 10 Year 241.4% 102.4% 139% 20 Year 2,334.4% 382.5% 1,951.9% DHR S&P Dec-95 Dec-97 Dec-99 Dec-01 Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15 Outperforming over the long term

6 2015 Review $20.0 $15.0 $15.4 $17.5 $3.41 $18.3 $3.68 $19.2 $3.97 $20.6 $4.30 $5.00 $4.00 $3.00 $10.0 $2.92 $2.00 $5.0 $1.00 $ Revenue from Continuing Ops ($B) Adjusted EPS DBS: Growth, Lean and Leadership driving our performance $0.00

7 Free Cash Flow Conversion Free Cash Flow* ($M) $2,861 $2,929 $3,038 $3, Net Income Above Net Income *Free cash flow is defined as operating cash flow less capital expenditures. Free cash flow exceeded net income for 24 th year in a row

8 Danaher Today Life Sciences & Diagnostics Dental Environmental Industrial Technologies Test & Measurement Diagnostics Dental Water Quality Product ID Instruments Automation Life Sciences Gilbarco Veeder- Root Sensors & Controls Matco/ Hennessy Pall Specialty Industrial Outstanding portfolio of businesses

9 Danaher Portfolio Exposure to attractive macro growth drivers Digital trends, healthcare, environmental, regulatory shifts, high growth markets Resilient business models Significant exposure to aftermarket and HGM Large installed base with recurring revenue stream Opportunities for innovation Digital technology transition Software as a Service Revenue Industrial Technologies 16% Environmental 18% Test & Measurement 13% Dental 13% Life Sciences & Diagnostics 40% 2015 $20.6B GM % 52.3% R&D % 6.0% % HGM ~26% % Aftermarket ~45% Leading brands. Attractive business models.

10 Danaher Business System

11 Environmental Overview 2015 Financials Revenue $3.6B OP Margin 21.5% Revenue Breakdown Geographic Mix 4% 25% 17% NA HGM 54% EU ROW 50% 50% Consumables/Service Equipment Market Details Market Size ~$19B Growth Rate +LSD/MSD Growth Drivers Increasing environmental awareness Process optimization Environmental and payment security regulations Increasing adoption of alternative fuels Customers Municipal water facilities Industrial process and utilities Major and regional oil companies Service stations Local and long-haul trucking fleets Market leading positions capitalizing on attractive secular growth trends

12 Test & Measurement Overview 2015 Financials Revenue $2.7B OP Margin 23.1% Revenue Breakdown Geographic Mix 25% 13% NA HGM 5% 57% EU ROW 70% 30% Consumables/Service Equipment Market Details Market Size ~$18B Growth Rate +LSD/MSD Growth Drivers Digital world Innovative new products and evolution of technology Increased network congestion Proliferation of digital security threats on the rise Customers Electronic and industrial technicians Electrical engineers Enterprise networks Network operators / wireless carriers Well positioned to take advantage of industry growth drivers

13 Life Sciences & Diagnostics Overview 2015 Financials Revenue $9.9B OP Margin 13.3% Revenue Breakdown* Geographic Mix 29% NA HGM 8% 24% 38% EU ROW 35% 65% Consumables/Service Equipment Market Details Market Size ~$40B Growth Rate +MSD Growth Drivers Skilled labor shortage & cost pressure driving adoption of automated solutions Evolution of life science research Growth of chronic diseases and infections Healthcare expenditures increasing in HGMs Customers Hospital labs Reference labs Government & academic research Food & beverage, pharmaceuticals, forensics Uniquely positioned to capitalize on industry trends and growth drivers

14 Dental Overview 2015 Financials Revenue $2.7B OP Margin 13.5% Revenue Breakdown Geographic Mix 7% 18% 24% NA HGM 51% EU ROW 35% 65% Consumables/Service Equipment Market Details Market Size ~$15B Growth Rate +LSD/MSD Growth Drivers Global demographic trends aging population Growing middle class in high growth markets Digitizing the dental practice Cosmetic and aesthetics dentistry Customers General practices Specialists (endo/ortho/perio/surgical) Group practices Schools, hospitals and government Building the leading global dental franchise

15 Industrial Technologies Overview 2015 Financials Revenue $3.4B OP Margin 24.1% Revenue Breakdown Geographic Mix 3% 26% NA 24% HGM 47% EU ROW 75% 25% Consumables/Service Equipment Market Details Market Size ~$20B Growth Rate +LSD/MSD Growth Drivers Digitization allowing for more data; better tracking Demand for brand consistency / integrity Changing consumer behavior in HGM Demand for automation/energy efficient solutions Customers Consumer packaged goods Global packaging and graphics Machine and equipment OEMs Medical equipment and devices Industrial portfolio delivering strong growth and margin improvement

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