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| 8-K - 8-K - DANAHER CORP /DE/ | d851076d8k.htm |
 J.P.
MORGAN HEALTHCARE CONFERENCE January 13, 2015
Exhibit 99.1 |
 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.
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. |
 Diagnostics***
$4.8B
Strategic Platforms
Building a Global Science and Technology Company
Dental
Life Sciences
& Diagnostics
Test &
Measurement
Industrial
Technologies
Environmental
Communications*
$1.0B
Water Quality
$2.0B
Gilbarco Veeder-
Root
$1.6B
Instruments
$2.0B
Dental**
$2.9B
Product ID
$1.6B
Automation
$0.8B
Life Sciences
$2.5B
Figures represent 2014E adjusted revenues, reflecting adjustments described in these footnotes
*Not including pending NetScout transaction **~$0.7B of 2014E revenue from Nobel
Biocare and ~$2.2B of 2014E revenue from Dental platform ; ***~$0.2B of 2014E revenue from Devicor and ~$4.6B of 2014E revenue from Diagnostic platform |
 Danaher Business System |
 Current Update
Q4 played out largely as expected
Well positioned for 2015 and beyond
Adjusted EPS guidance range of $4.35-$4.45
Anticipate core revenue growth of 3-4%
Optimizing our portfolio to improve and sustain our market leading
positions
2015 Guidance
U.S.
solid;
Europe
stable;
High
growth
markets
(HGM)
lead
but
mixed
performance
23
rd
consecutive year of FCF>NI
~$4.0B of acquisitions announced or closed in 2014
Pending RMT of Communications business with NetScout
Divested $100M product line within Motion |
 Diagnostics
Life Sciences Tools
~$2.5B
2014E Revenue
65% Instruments
35% Consumables/Service
~$15B
Market
Size
~$4.8B*
2014E Adjusted Revenue
20% Instruments
80% Consumables/Service
~$25B
Market Size
*Represents 2014E adjusted revenue;
~$0.2B of 2014E revenue from Devicor and
~$4.6B of 2014E revenue from Diagnostics Platform
Life Sciences & Diagnostics |
 Diagnostics Overview
Customers
Hospital labs
Reference labs
Hospital critical care
Histopathology labs
Growth Drivers
Healthcare expenditures increasing in HGMs
Greater investment in preventative and predictive
medicine
Skilled labor shortage & cost pressure driving
adoption of automated solutions
Market Details
Market
Size
~$25B
Growth
Rate
+MSD
2014E Financials
Adjusted
Revenue
~$4.8B*
*Represents 2014E adjusted revenues;
~$0.2B of 2014E revenue from Devicor and
~$4.6B
of
2014E
revenue
from
Diagnostics
Platform
Comprehensive product offering coupled with scaled, global presence
Geographic
Mix Revenue Breakdown
NA
EU
HGM
ROW
6%
38%
23%
33%
Consumables/Service
Equipment
80%
20% |
 Building the Diagnostics Platform
$9B+ of capital committed since 2004; Significant M&A runway
~$300M
Revenue
~$4.8B**
2004
2014E
Core Lab Urinalysis Middleware
Microbiology Histology Adv.
Staining Histology Consumables Digital Pathology ISH/FISH Biopsy
Blood Gas
Immunoassay
Hemoglobin
Beckman Dx
Leica
Biosystems
Radiometer
2004
2006
2008
2012
2014
2010
*
*Pending, subject to customary closing conditions
**Represents 2014E adjusted revenues;~$0.2B
of 2014E revenue from Devicor and ~$4.6B of 2014E
revenue from Diagnostics Platform |
 What You Will Hear Today
Driving +MSD core growth with significant runway for margin improvement
Accelerating growth through organic investments in new
products and feet-on-the street
DBS improving customer satisfaction and operational
performance while funding growth
Acquisitions expanding addressable market and breadth of
product offerings |
 Growth Investments –
LS&D
* Not yet commercially available in the US
Increasing product launch cadence at Beckman Dx
Key product launches at LBS
Continuing to invest in HGMs and R&D
+MSD core revenue growth in 2014E with 2X revenue from new products
Automation solutions: Connectivity for DxH800 and FDA
clearance for PowerExpress solutions
Menu expansion: Vitamin D* and Automated AMH*
(fertility)
Enter Molecular Dx with Veris*; high volume fully
automated PCR solution, very fast turn-around time,
random access, multiplexing capabilities
FDA clearance for HER2 IHC
First SaaS product offering with Aperio ePathAccess
>10% increase in HGM feet-on-street across Dx in 2014E
Joint Dx Software Development Center in Bangalore |
 Investing for Growth –
Beckman
DBS improving customer satisfaction, expanding margin and funding growth
*Based on IMV customer ranking among major IVD players: SDR3
Remediated quality management
system
Increased instrument reliability >50%
Improved to #1 (from #4) for service
delivery in US*
Key Performance
Indicator
2012
2013
2014E
OMX (bps)
>300
>150
>150
WC turn improvement
~0.5
>0.5
>0.5
Growth headcount
>200
>200
>200
# of reagent SKUs on stock-out
Reduced
>75%
FDA 510(k) clearance of Troponin Assay
Formal closure of all FDA warning letters |
 Iris Acquisition
OP margin >+2,000 bps since acquisition; Double-digit ROIC in year 2
2013
2014E
Expanded offering for core hospital lab
Attractive market and business model
Beckman’s scale accelerating growth
and cost savings
Leader in automated urinalysis testing
Beckman’s first bolt-on acquisition
~$400M market growing +MSD/HSD
~70% consumables/~30% equipment
Leveraging access in HGMs and in
Developed markets
Increasing FOS and R&D resources,
funded through back-office synergies
Revenue
>10% growth
Op Profit
~2X |
 Devicor Acquisition
LBS broadest workflow coverage in anatomical pathology
Positions LBS at the front-end of breast cancer
workflow
Installed-base business model
~80% consumables and 70% gross margin
Attractive business model and margin profile
with opportunity to improve using DBS
Control sample handling/processing to improve diagnostic
quality
Runway to expand into other biopsy market segments
Opportunity for integrated workflow from biopsy to
diagnosis
A leader in vacuum-assisted breast biopsy
$400M market segment growing +MSD |
 Complementary Workflow
LBS broadest workflow coverage in anatomical pathology
MammoPort
with Revolve tray
(under
development)
Leica Tissue Processor
Customer value proposition
Increased sample integrity and tissue quality
Time reduction to accession and to processing of biopsies
Automated data tracking from biopsy to path lab => reduced risk of
sample mislabeling |
 Summary
Accelerating growth through organic investments in new
products and feet-on-the street
DBS improving customer satisfaction and operational
performance while funding growth
Acquisitions expanding addressable market and breadth of
product offerings
Driving +MSD core growth with significant runway for margin improvement
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