INVESTOR & ANALYST MEETING December 15, 2016

106 Pages·2016·6.11 MB·English

by  Erin Vaughn Ewell

INVESTOR & ANALYST MEETING
December 15, 2016
Forward Looking Statements
Statementsinthispresentationthatarenotstrictlyhistorical,includinganystatementsregardingeventsordevelopmentsthatwebelieveoranticipatewillormay
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
marketsweserveandthefinancialmarkets,theimpactofourrestructuringactivitiesonourabilitytogrow,contractionsorgrowthratesandcyclicalityofmarkets
we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper
conductbyouremployees,agentsorbusinesspartners,ourabilitytosuccessfullyidentify,consummateandintegrateappropriateacquisitionsandsuccessfully
completedivestituresand otherdispositions,ourabilityto integratetherecent acquisitionsofPall Corporation and Cepheid and achievetheanticipated benefits
of those transactions, contingent liabilities relating to acquisitions and divestitures (including tax-related and other contingent liabilities relating to the
distributions of each of Fortive Corporation and our communications business), 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 or 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 (including the impact of the UK referendum to leave the EU), disruptions relating to man-made and natural disasters,
securitybreachesorotherdisruptionsofourinformationtechnologysystemsandpensionplancosts.Additionalinformationregardingthefactorsthatmaycause
actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2015 Annual Report on Form 10-K and
Quarterly Report on Form 10-Q for the third quarter of 2016. 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
foundinthe“Investors”sectionofDanaher’swebsite,www.danaher.com,undertheheading“Events&Presentations,”andeventname“Danaher2016Investor&
AnalystMeeting.”Allreferencesinthispresentationtoearnings,revenuesandothercompany-specificfinancialmetricsrelateonlytothecontinuingoperationsof
Danaher’sbusiness,unlessotherwisenoted.Allreferencesinthispresentationto“growth”orotherperiod-to-periodchangesrefertoyear-over-yearcomparisons
unlessotherwiseindicated.Wemayalsodescribecertainproductsanddeviceswhichhaveapplicationssubmittedandpendingforcertainregulatoryapprovals.
Agenda
9:30 am Welcome Matt Gugino
9:35 am Opening Remarks Tom Joyce
10:05 am Life Sciences Dan Daniel
Pall Rainer Blair
Water Quality Lance Reisman
Q&A Daniel, Blair, Reisman
11:00 am Break All
11:20 am Diagnostics Arnd Kaldowski
Product Identification Joakim Weidemanis
Dental Amir Aghdaei
Q&A Kaldowski, Weidemanis, Aghdaei
12:15 pm Closing Remarks & Guidance Tom Joyce
12:25 pm Q&A Tom Joyce
12:40 pm Program End / Lunch

OPENING REMARKS
Tom Joyce, President & CEO
Danaher Today
Life Environmental &
Diagnostics Dental
Sciences Applied Solutions
~$5.3B revenue ~$5.0B revenue ~$2.8B revenue ~$3.7B revenue
Water Quality
Product ID
All financial metrics shown reflect 2016 estimated (“2016E”) revenues from continuing operations.
Building a multi-industry, science & technology company
2016 Highlights
Team executing well in current macro environment
Consistent core revenue growth across all 4 segments
Estimated FCF of ~$2.5B expected to exceed Net Income for
25th consecutive year
Expanding margins while reinvesting
Core OMX up 90bps YTD
Ex-Pall GM up 130bps y/y, G&A* down, R&D/S&M* up 90bps
Announced and closed ~$5B in acquisitions, including
Cepheid and Phenomenex
~10 deals across all 5 platforms
Completed separation of Fortive in July
* As a % of total revenues.
All figures on this slide are for the nine months ended September 30, 2016 unless otherwise indicated.
~20% adjusted EPS growth y/y expected in 2016
What You’ll Hear Today
Danaher Business System is our culture and our
competitive advantage
Outstanding portfolio with significant growth and
margin opportunities
Superior FCF generation and disciplined M&A help
drive compounding long-term returns
DBS is Our Culture
DBS Principles and
8 Core Value Drivers
Core Growth
OMX
Shareholder
Cash Flow / WC Turns
Leadership
ROIC
Quality (External PPM)
Customer
On-Time Delivery
Growth Lean
Internal Fill Rate
Associate
Retention
“OMX” is Operating Margin Expansion; “WC” is Working Capital
Expand capabilities, drive consistent execution, sustain results