The world leader in serving science
Tom Loewald
Senior Vice President and Chief Commercial Officer
November 8, 2016
Baird 2016 Global Industrial Conference Tom Loewald Senior Vice - - PowerPoint PPT Presentation
Baird 2016 Global Industrial Conference Tom Loewald Senior Vice President and Chief Commercial Officer November 8, 2016 The world leader in serving science Safe Harbor / Non-GAAP Measures Various remarks that we may make in the following
The world leader in serving science
Senior Vice President and Chief Commercial Officer
November 8, 2016
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Various remarks that we may make in the following presentation about the company’s future expectations, plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in our Form 10-Q for the quarter ended July 2, 2016, under the caption “Risk Factors,” which is on file with the Securities and Exchange Commission and available in the “Investors” section of our website under the heading “SEC Filings.” Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the need to develop new products and adapt to significant technological change; implementation of strategies for improving internal growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of exchange rate fluctuations on international operations; the effect of healthcare reform legislation; use and protection of intellectual property; the effect of changes in governmental regulations; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions may not materialize as expected. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if estimates change, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today. During this presentation, we will be referring to certain financial measures not prepared in accordance with generally accepted accounting principles, or GAAP, including adjusted EPS and adjusted operating margin. The non-GAAP financial measures of Thermo Fisher’s results of operations and cash flows included in this presentation are not meant to be considered superior to or a substitute for Thermo Fisher’s results of operations prepared in accordance with GAAP. Definitions of these non-GAAP financial measures and, for historical periods, a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available under the heading “GAAP/Non-GAAP Reconciliation & Financial Package” in the “Investors” section of our website, www.thermofisher.com.
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Consumables Consumables
Europe Europe
Instruments Equipment & Software Instruments Equipment & Software Services Services
North America North America
Asia- Pacific Asia- Pacific ROW ROW
Academic & Government Academic & Government
Industrial & Applied Industrial & Applied Diagnostics & Healthcare Diagnostics & Healthcare
Pharma & Biotech Pharma & Biotech
Note: Percentage estimates based on unaudited LTM combined revenues of Thermo Fisher Scientific through Q3 2016
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Percentages based on unaudited LTM revenues through Q3 2016 including estimates for intercompany eliminations and other accounting policy adjustments.
Life Sciences Solutions
Life Sciences Solutions
Specialty Diagnostics
Specialty Diagnostics
Analytical Instruments
Analytical Instruments
Laboratory Products and Services
Laboratory Products and Services
Leading positions in attractive niche diagnostics segments Extensive portfolio to accelerate life sciences research, discovery and diagnosis Industry-leading technologies to solve a broad range of complex analytical challenges Industry-leading offering to increase laboratory productivity
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applied markets
and ability to leverage cross-business technologies and programs
Life Sciences Solutions Life Sciences Solutions Specialty Diagnostics Specialty Diagnostics Analytical Instruments Analytical Instruments Laboratory Products and Services Laboratory Products and Services
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R&D Spend and percentages based on LTM through Q3 2016.
Life Sciences Solutions Life Sciences Solutions Specialty Diagnostics Specialty Diagnostics
Laboratory Products
Analytical Instruments Analytical Instruments
R&D Spend
Life Sciences Solutions
Analytical Instruments
Laboratory Products
Specialty Diagnostics
autoimmunity
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Innovation Innovation
China Innovation Center established
B.R.A.H.M.S B.R.A.H.M.S
Established environmental instruments HQ in Shanghai South America HQ in Brazil India Chromatography Center of Excellence Suzhou factory Lithuania Biosciences Center of Excellence Dubai Customer Experience Center
Global footprint Global footprint
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Singapore
Opened India clinical packaging facility Raman portable spectrometers Bioproduction single-use technologies Vanquish UHPLC Exactive Orbitrap Fusion Tribrid Orbitrap Sorvall LYNX centrifuge ImmunoCap Attune Nxt Ion Torrent S5 Cryo-EM
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Accelerate research Support regulatory compliance Utilize strategic
Optimize supply chain Enable technical innovation Improve production efficiency Improve diagnostics Solve complex analytical challenges Increase lab productivity Partner
projects
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transaction platform
service levels
aggregation services
management solutions
warehouses
markets
Broadest market offering
Broadest market offering
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Developed Markets
81%
Emerging Markets
19% $18B Revenue China
>$1.5B Revenue
South Korea
>$250M Revenue
S.E. Asia
>$350M Revenue
India
>$200M Revenue
Brazil
>$100M Revenue
East, Africa
>$550M Revenue
Latin America (excl. Brazil)
>$250M Revenue
NOTE: Revenue based on LTM through Q3 2016 * LCR: Low-cost region.
Demonstration labs: 26 Total employees: >12,000 LCR* manufacturing revenue: $1.4B
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Annual Revenue $B % of Total Company Revenue
2010 2015 2010 2015
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Strategic PPI deployment for long-term benefit
Adjusted Operating Margin %
2010 2015
Consistently deliver world-class products and services Exceed expectations to maximize customer success Improve operating and process efficiency to strengthen our competitive advantage
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2010 – Q3 2016 Dividends
M&A
M&A
Buybacks
Buybacks
3% 3%
Notable M&A
Share Buybacks
repurchase 78M shares
Dividend
since 2012
100s of smaller companies 100s of smaller companies Thermo Fisher Scientific plus top 2 competitors Thermo Fisher Scientific plus top 2 competitors
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~$350M Annual Revenue
Consumables Instruments Services/Other Europe Asia- Pacific ROW U.S.
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~$930M Annual Revenue
North America North America
32% 32%
Europe Europe
27% 27% 41% 41%
APAC & ROW APAC & ROW Services & Software Services & Software
29% 29%
Instrument Systems Instrument Systems
71% 71%
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$100 invested
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
$470.79 Thermo Fisher Scientific $163.74 S&P 500
Shareholder Return
18