statements that are specific to the date of the presentation - - PowerPoint PPT Presentation
Please note that the following presentation contains financial projections and other forward-looking statements that are specific to the date of the presentation November 5, 2013 and should not be considered current after that date.
Please note that the following presentation contains financial projections and other forward-looking statements that are specific to the date of the presentation – November 5, 2013 – and should not be considered current after that date.
Marc Casper
President and Chief Executive Officer
Baird Industrial Conference
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Various remarks that we may make in this 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 such forward-looking statements as a result of various important factors, including those discussed in our Form 10-Q for the quarter ended September 28, 2013, 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; the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to the pending acquisition of Life Technologies 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 our estimates change and, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.
Safe Harbor / Non-GAAP Measures
During these presentations, we will be referring to certain financial measures not prepared in accordance with generally accepted accounting principles, or GAAP, including adjusted EPS, adjusted operating income, adjusted operating margin and free cash flow. 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 Information” in the “Investors” section of our website, www.thermofisher.com. All prior results have been adjusted to present the results of the Laboratory Workstations business as discontinued operations.
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Industry-leading Brands
Unmatched Depth
We Are the World Leader in Serving Science
Global Scale
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We Enable Our Customers to Make the World…
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Leading portfolio of specialty diagnostic tests to improve patient care
Our Unique Scale and Depth of Capabilities
Note: Revenue based on LTM through Q3 2013. Percentages shown are before inter-company eliminations.
Most comprehensive technology portfolio for both research and applied markets
Analytical Technologies Segment
30%
Specialty Diagnostics Segment
24%
Laboratory Products and Services Segment
46%
Revenue
Premier supplier to enable laboratory productivity and accelerate innovation
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Diverse Customers, Product Mix & Geographic Reach
End Markets Products Geographies
56%
Consumables
30%
Europe
25%
Instruments, Equipment & Software Services
14% 54%
North America
17%
Asia- Pacific ROW
4% 21%
Academic & Government
27%
Industrial & Applied Healthcare & Diagnostics
26% 26%
Pharma & Biotech
Balanced and diverse customer base Growing presence in emerging markets Strong recurring revenue mix
Note: Revenue based on LTM through Q3 2013.
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Strong Track Record of Financial Performance
Adjusted EPS ($) Revenue ($B) Adjusted Operating Income ($B)
2012 2007
$2.55 $4.94
2012 2007
$9.4 $12.5
2012 2007
$1.6 $2.4
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Technological Innovation Value Proposition Emerging Markets
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Strengthening Our Innovation Pipeline
since 2007
2007 2012 $235M $375M
* Percentage of product revenue from products launched in last two years
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Pharma & Biotech Academic & Government Healthcare & Diagnostics Industrial & Applied
Innovating to Solve New Customer Challenges
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Thermo Scientific iCAP Q ICP-MS
Increasing Need to Screen Food for Contaminants
for potential health hazards
and other elements
potential legislative action
Problem
provide complete workflow
sub-picogram detection capability
management, scalability, compliance
Solution
Supporting research
Technical University of Denmark
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Problem
metals
the process Niton DXL Desktop X-Ray Lab
chemicals or acids
Solution
Measuring the Quality of Precious Metals
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Delivering a Unique Value Proposition
biopharma customers
accelerating innovation
reagents and lab supplies
2007 2012 2007 2012
* EvaluatePharma, “Worldwide R&D Spend by Pharma & Biotech Companies (2004-2018)”
Biopharma Industry Growth* Thermo Fisher Biopharma Growth
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Delivering a Unique Value Proposition
additional customer sets
to gain share in biopharma
customers
therapies, biologics, vaccines
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Expanding Footprint in High-Growth Regions
2007
10%
Europe North America
2012
21%
Europe North America
India: Laboratory chemicals China: Established commercial presence China: Opened first factory China: Instruments Center
China: Suzhou laboratory products factory Brazil: commercial expansion Lithuania: Biosciences Center of Excellence Singapore: Bioprocess production Center
China: Tier two commercial expansion India: Biopharma services capability China: R&D capability China: second demo center
Demo center
% Revenue from APAC and ROW*
* APAC and ROW does not include emerging markets in Eastern Europe
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Expanding Footprint in High-Growth Regions
in China
manufacturing, R&D, commercial
diagnostics, environmental, food safety
in emerging markets
growth markets
2017 Goal
25 %
Europe North America APAC & ROW
Note: APAC and ROW does not include emerging markets in Eastern Europe
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Operational Excellence is a Core Competency
Significant ongoing opportunity to drive margin expansion
Global Sourcing Facility Rationalization and Restructuring Low-Cost-Region Manufacturing PPI Business System 25% 10% 25% 40% $250M Savings expected in 2013
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Expanded in Lithuania and China (Suzhou) in 2012 Annual goal: move $100M
to deliver over $20M in annual savings
Proven Track Record of Manufacturing Productivity
average of $2 - 3M $20M of estimated savings in 2013 Revenue per manufacturing facility 2007 2012 $41M $62M 2007 $200M 2012 $600M Manufacturing revenue from low-cost regions
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Effective Capital Deployment Creates Shareholder Value
2010 - 2012
67% 33%
Return of capital
Ahura Finnzymes Fermentas Dionex Doe & Ingalls One Lambda Phadia
Strategic acquisitions
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Key product categories
Attractive revenue profile*
Mix
Instruments 15% Consumables & Services 85%
Regions
Americas 45% Europe 31% APAC 14% Japan 10% * Based on FY 2012 revenues
Life Technologies Acquisition – Expect Early 2014 Close
Strengthens Value Proposition for Our Customers
research, specialty diagnostics and applied markets
Creates Compelling Value for Our Shareholders
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Highly Complementary Offering and Capabilities
Technology and Innovation Leader Ultimate Customer Partner
Research Production Applied Markets Specialty Diagnostics Operational Excellence
management Deep Applications Expertise
Commercial Reach
partnerships
and healthcare
e-commerce capability
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Capital Deployment Plan
2013
2014
to debt repayment
2015
then expect to return to traditional capital deployment
Note: Leverage ratio = total debt divided by trailing 12 months pro forma adjusted EBITDA
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Well Positioned Industry Leader