2016 OVERVIEW Forward Looking Statements Statements in this - - PDF document
2016 OVERVIEW Forward Looking Statements Statements in this - - PDF document
2016 OVERVIEW 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
Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe
- r 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 forward- looking 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 2015. 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, www.danaher.com, under the heading “Investor Events,” and event name “Danaher 2015 Investor & Analyst Meeting.” All references in this presentation to earnings, revenues and other company- specific 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.
Danaher Family of Brands
- 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
2015 Highlights
Well positioned for outperformance in 2015 and beyond
0.00 500.00 1000.00 1500.00 2000.00 2500.00 3000.00 Dec-95 Dec-97 Dec-99 Dec-01 Dec-03 Dec-05 Dec-07 Dec-09 Dec-11 Dec-13 Dec-15
20-Year Total Shareholder Return DHR vs. S&P 500
Outperforming over the long term
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%
S&P 500 DHR
2015 Review
DBS: Growth, Lean and Leadership driving our performance
$15.4 $17.5 $18.3 $19.2 $20.6
$2.92 $3.41 $3.68 $3.97 $4.30 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $0.0 $5.0 $10.0 $15.0 $20.0 2011 2012 2013 2014 2015 Revenue from Continuing Ops ($B) Adjusted EPS
Free Cash Flow Conversion
Free cash flow exceeded net income for 24th year in a row
*Free cash flow is defined as operating cash flow less capital expenditures.
$2,861 $2,929 $3,038 $3,195 2012 2013 2014 2015
Free Cash Flow* ($M) Net Income Above Net Income
Danaher Today
Outstanding portfolio of businesses Dental Dental Life Sciences & Diagnostics Life Sciences & Diagnostics Test & Measurement Test & Measurement Industrial Technologies Industrial Technologies Environmental Environmental
Water Quality Gilbarco Veeder- Root Instruments Dental Matco/ Hennessy Product ID Automation Diagnostics Life Sciences Pall Sensors & Controls Specialty Industrial
Danaher Portfolio
Leading brands. Attractive business models.
- 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
Test & Measurement 13% Environmental 18% Dental 13% Life Sciences & Diagnostics 40%
2015
Revenue $20.6B GM % 52.3% R&D % 6.0% % HGM ~26% % Aftermarket ~45%
Industrial Technologies 16%
Danaher Business System
Environmental Overview
Customers Customers
- Municipal water facilities
- Industrial process and utilities
- Major and regional oil companies
- Service stations
- Local and long-haul trucking fleets
Growth Drivers Growth Drivers
- Increasing environmental awareness
- Process optimization
- Environmental and payment security regulations
- Increasing adoption of alternative fuels
Market Details Market Details
Market Size ~$19B Growth Rate +LSD/MSD
2015 Financials 2015 Financials
Revenue $3.6B OP Margin 21.5%
Geographic Mix
Revenue Breakdown Revenue Breakdown
NA EU HGM ROW
4% 54% 17% 25%
Consumables/Service Equipment
50% 50%
Market leading positions capitalizing on attractive secular growth trends
Test & Measurement Overview
Customers Customers
- Electronic and industrial technicians
- Electrical engineers
- Enterprise networks
- Network operators / wireless carriers
Growth Drivers Growth Drivers
- Digital world
- Innovative new products and evolution of technology
- Increased network congestion
- Proliferation of digital security threats on the rise
Market Details Market Details
Market Size ~$18B Growth Rate +LSD/MSD
2015 Financials 2015 Financials
Revenue $2.7B OP Margin 23.1%
Geographic Mix
Revenue Breakdown Revenue Breakdown
NA EU HGM ROW
5% 57% 13% 25%
Consumables/Service Equipment
30% 70%
Well positioned to take advantage of industry growth drivers
Life Sciences & Diagnostics Overview
Customers Customers
- Hospital labs
- Reference labs
- Government & academic research
- Food & beverage, pharmaceuticals, forensics
Growth Drivers 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
Market Details Market Details
Market Size ~$40B Growth Rate +MSD
2015 Financials 2015 Financials
Revenue $9.9B OP Margin 13.3%
Geographic Mix
Revenue Breakdown* Revenue Breakdown*
NA EU HGM ROW
8% 38% 24% 29%
Consumables/Service Equipment
65% 35%
Uniquely positioned to capitalize on industry trends and growth drivers
Dental Overview
Customers Customers
- General practices
- Specialists (endo/ortho/perio/surgical)
- Group practices
- Schools, hospitals and government
Growth Drivers Growth Drivers
- Global demographic trends – aging population
- Growing middle class in high growth markets
- Digitizing the dental practice
- Cosmetic and aesthetics dentistry
Market Details Market Details
Market Size ~$15B Growth Rate +LSD/MSD
2015 Financials 2015 Financials
Revenue $2.7B OP Margin 13.5%
Geographic Mix
Revenue Breakdown Revenue Breakdown
NA EU HGM ROW
7% 51% 24% 18%
Consumables/Service Equipment
65% 35%
Building the leading global dental franchise
Industrial Technologies Overview
Customers Customers
- Consumer packaged goods
- Global packaging and graphics
- Machine and equipment OEMs
- Medical equipment and devices
Growth Drivers 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
Market Details Market Details
Market Size ~$20B Growth Rate +LSD/MSD
2015 Financials 2015 Financials
Revenue $3.4B OP Margin 24.1%
Geographic Mix
Revenue Breakdown Revenue Breakdown
NA EU HGM ROW
3% 47% 24% 26%
Consumables/Service Equipment
25% 75%