2017 Annual Meeting of Shareholders

Transcription

1 2017 Annual Meeting of Shareholders May 17, 2017 The world leader in serving science

2 Safe Harbor / Non-GAAP Measures Various remarks that we may make in the following presentations 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 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 April 1, 2017, 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; 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 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 margin, adjusted ROIC and free cash flow. The non-gaap financial measures of Thermo Fisher s results of operations and cash flows included in these presentations 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 in the appendix to these presentations. Please note that the attached presentations contain financial projections and other forward-looking statements that are specific to the date of the presentations May 17, 2017 and should not be considered current after such date. 2

3 Annual Meeting of Shareholders Proposal 1: Election of Directors RESOLVED, that the following individuals be elected as directors of the company, to hold office for a term expiring on the date of the 2018 Annual Meeting of Shareholders and until their respective successors are duly elected and qualified or until their earlier resignation, removal or death: Marc N. Casper Nelson J. Chai C. Martin Harris Tyler Jacks Judy C. Lewent Thomas J. Lynch Jim P. Manzi William G. Parrett Lars R. Sørensen Scott M. Sperling Elaine S. Ullian Dion J. Weisler Proposal 2: An Advisory Vote on Executive Compensation RESOLVED, that the compensation paid to the company s named executive officers, as disclosed pursuant to the compensation disclosure rules of the Securities and Exchange Commission, including the compensation discussion and analysis, the compensation tables and any related material disclosed in the company s 2017 proxy statement, is hereby approved. Proposal 3: An Advisory Vote on the Frequency of Future Executive Compensation Advisory Votes RESOLVED, that a frequency of every one year to hold the executive compensation advisory votes is hereby approved. Proposal 4: Ratification of the Company s Independent Auditors for 2017 RESOLVED, that the Audit Committee s selection of PricewaterhouseCoopers LLP as the company s independent auditors for 2017 is hereby ratified and approved. 3

4 Extending Our Track Record of Significant Value Creation Marc N. Casper President and Chief Executive Officer May 17, 2017 The world leader in serving science

5 We Are The World Leader in Serving Science Global Scale >55,000 employees in 50 countries $18 billion in annual revenue Unparalleled commercial reach Unmatched Depth Leading innovative technologies Deep applications expertise Premier laboratory productivity partner Our Mission: To enable our customers to make the world healthier, cleaner and safer 5

6 Our Formula for Success Hasn t Changed Organic Growth Unique customer value proposition High-impact innovation Scale in emerging markets Consistently delivering PPI Business System Productivity Quality Customer allegiance Capital Deployment Strategic M&A Return of capital strong EPS growth 6

7 Serving a ~$110B Market that s Growing 3-5% Annually Favorable demographics fuel research and better diagnostics Rising wealth in emerging markets Diagnostics & Healthcare 24% Pharma & Biotech 31% Rapid growth in demand for biologics and vaccines Strong pharma & biotech funding and drug pipelines $18.7B Revenue GDP growth fueling demand Interconnected food supply driving increased environmental and food safety testing in emerging markets Industrial & Applied 20% Academic & Government 25% Growing global focus and funding for precision medicine Strong investments in China s 5-year plan priorities Thermo Fisher is positioned to grow at least one point faster than the market 7 NOTE: Revenue and end market percentages based on LTM through Q

8 Complementary Segments Create Competitive Advantage Analytical Instruments Life Sciences Solutions Mass Spectrometry Fusion Lumos MS Clinical Diagnostics PCT Biomarkers Pathology Specialty Diagnostics Rotary Microtome icap Triple Quad MS Chemical Analysis Gemini handheld analyzer Microbiology Electron Microscopy Titan Krios TEM ImmunoDiagnostics ImmunoCAP Allergy and EliA Autoimmunity Tests Antimicrobial Susceptibility Testing Solutions Chromatography Transplant Diagnostics 17% NXType High-Resolution Genotyping Vanquish UHPLC 20% $18.7B Revenue 35% 28% Clinical Oncology Next Gen Sequencing Laboratory Chemicals SeqStudio CE system Genetic Sciences QuantStudio Dx R qpcr BioProduction Laboratory Products and Services Lab Equipment TSX ULT Freezers Enterprise and Instrument Services Reproductive Health Microarrays Biosciences Cell Culture Reagents Life Science Reagents BioPharma Services Lab Consumables E1 ClipTip Pipette system 8 NOTE: Revenue and segment percentages based on LTM through Q

9 Consistently Delivering Excellent Financial Performance 10% CAGR 15% CAGR $18.3B $ % CAGR $2.8B $11.6B $4.16 $1.5B Revenue Adjusted EPS Free Cash Flow Leveraging our industry leadership to achieve outstanding results 9

10 Our Vision for the Future Customers Fulfill our Mission by helping our customers achieve breakthroughs that improve society Continue to gain market share by delivering the benefits of our scale and depth of capabilities Colleagues Inspire our incredibly talented team to enable our customers success Be recognized as one of the world s most admired companies Shareholders Generate significant shareholder returns by consistently delivering strong EPS growth 10