2014 Danaher Analyst Event Presentation

110 Pages·2014·6.8 MB·English

by  Erin Ewell

Investor and Analyst Meeting
December 11, 2014
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 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 products and technologies 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, 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, compliance 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 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 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 2013 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2014. 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 2014 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.
Agenda
12:30 pm Welcome Matt Gugino
12:35 pm Opening Remarks Tom Joyce
1:00 pm Q&A Tom Joyce
Jim Lico, Henk van
1:15 pm T&M, GVR, Dental, IT plus Q&A
Duijnhoven, Dan Daniel
2:30 pm BREAK
Water Quality, Diagnostics, Life Mark Beck, Arnd
3:00 pm
Sciences plus Q&A Kaldowski, Rainer Blair
4:00 pm Closing Remarks/Guidance Tom Joyce
4:10 pm Q&A Tom Joyce
Cocktail Reception – Terrace
4:30 pm All
Room
OPENING REMARKS
Tom Joyce, President & CEO
What You Will Hear Today
Current Update


Overview of Danaher


Building the Water Quality Platform


Our Priorities for 2015 and Beyond


Segment Highlights


2015 Guidance

Current Update
Q4 to-date in line with October 2014 guidance

U.S. solid; Europe stable; High growth markets (HGM) lead but mixed performance

2014 planned productivity spend ~$125M with ~$100M payback in 2015


Recent M&A activity

Closed Nobel Biocare acquisition today, Devicor last week

~$4B of acquisitions announced or closed YTD

$8B+ acquisition capacity


2015 Guidance

Initiate Adjusted EPS guidance range of $4.35-$4.45

Anticipate core revenue growth of 3-4%

Positioned to finish 2014 strong and drive long-term results
Strategic Platforms
Test & Life Sciences Industrial
Environmental Dental
Measurement & Diagnostics Technologies
Water Quality Communications* Dental** Life Sciences Product ID
$2.0B $1.0B $2.9B $2.5B $1.6B
Gilbarco Veeder- Instruments Diagnostics*** Automation
Root $2.0B $4.8B $0.8B
$1.6B
Figures represent 2014E adjusted revenues *Not including pending NetScout transaction
**~$750M of 2014E revenue from Nobel Biocare and ~$2.2B of 2014E revenue from Dental platform ; ***~$170M of 2014E revenue from Devicor and ~$4.6B of 2014E revenue from Diagnostic platform
Building a Global Science and Technology Company
Portfolio
Industrial
Technologies Dental
Exposure to attractive macro growth drivers 17% PID 14%

8%
Digital trends, healthcare, environmental,

regulatory shifts, high growth markets
Environmental Life Sciences

17% & Diagnostics
35%
Resilient business models

Test &
Significant exposure to aftermarket and HGM Measurement

17%
Large installed base with recurring revenue stream


2014E*
Opportunities for innovation Revenue ~$21B

GM % ~53%
Digital technology transition

R&D % ~6.6%
Software as a Service
 % HGM ~26%
% Aftermarket ~45%
*Figures represent 2014E adjusted revenues; Includes ~$20 billion of 2014E revenue from Danaher and ~$750 million
and $170 million of 2014E revenue from Nobel Biocare and Devicor, respectively

Leading brands. Attractive business models.
Building Our Water Quality Portfolio
ACCURATE
MEASUREMENT
1998 2004 2006 2008 2010 2012 2014

Deployed ~$1.4B of capital on 35 acquisitions since 2001

Improved growth potential

15+ years of water analytics build out

~10 years of expansion into water treatment

Broadening addressable market in strategic fashion
Driving Core Growth with DBS at Hach
Digital marketing & service penetration
 Since Revenue OP Margin
E-commerce revenue growing at 10% CAGR Acquisition CAGR Expansion

past 5 years
Hach >10% >1,000bps
~400 bps market share increase since 2008


HGM Revenue
High Growth Markets


75% increase in HGM headcount since 2011


20% of 2014E China sales from local products
 2002 <$80M
From <20% of revenue in 2002 to >30% in 2014E
 5X

R&D investments accelerate future growth 2014E >$400M

20+ new products introduced in last 18 months

DBS and growth investments drive share gains, expand margins