2020 Shareholder Mtg Presentation FINAL · Microsoft PowerPoint - 2020 Shareholder Mtg...
Transcript of 2020 Shareholder Mtg Presentation FINAL · Microsoft PowerPoint - 2020 Shareholder Mtg...
The world leader in serving scienceProprietary & Confidential
Marc N. CasperChairman, President and Chief Executive Officer
Annual Meeting of Shareholders
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Safe Harbor Statement
Various remarks that we may make 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 these forward-looking statements as a result of various important
factors, including those discussed in the company’s most recent Quarterly Report on Form
10-Q 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.” 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.
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Non-GAAP Measures
During this presentation, we will be referring to certain financial measures not prepared in
accordance with generally accepted accounting principles, or GAAP. The non-GAAP financial
measures of Thermo Fisher’s results of operations and cash flows included in this presentation
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, as well as, for historical periods, a reconciliation of the non-GAAP financial
measures to the most directly comparable GAAP measures, are available under the heading
“GAAP/Non-GAAP Reconciliation & Financial Package” in the “Investors” section of our
website, thermofisher.com.
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employees75,000
invested in R&D$1B
revenue$25B
Unmatched depth of capabilities
• Leading innovative technologies
• Deep applications expertise
• Premier productivity partner
• Comprehensive Pharma services offering
Industry-leading scale
• Unparalleled commercial reach
• Unique customer access
• Expanding global footprint
Powered by our Practical Process Improvement (PPI) Business System
Thermo Fisher Scientific is the world leader in serving science
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Capital Deployment• Strategic M&A
• Return of capital
Growth Strategy• High-impact innovation
• Scale in high-growth and emerging markets
• Unique customer value proposition
PPI Business System• Productivity
• Quality
• Customer Allegiance
Consistentlydelivering
strong EPS growth
Our proven formula for long-term success
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Thank you
Another excellent year
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2018 2019
5% Growth
Revenue ($B)
$24.4 $25.5
2018 2019
11% Growth
Adjusted EPS
$12.35
2018 2019
6% Growth
Free Cash Flow ($B)
$3.8 $4.1$11.12
Exceptional financial performance
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Another excellent year of high-impact innovation
2019 Product Introduction Highlights
Innovation investments put us at the forefront of scientific advances
Vanquish MD HPLC
ImmunoCAP ISAC allergen panel
TMTpro Label reagents
Thermo Scientific Krios G4 TEM
Genexusintegrated sequencer
Orbitrap Exploris 480mass spectrometer
Orbitrap Eclipsemass spectrometer
QuantStudio 6 and 7real-time PCR instruments
CTS LV-MAX lentiviral
production system
GP PRO centrifuge
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Leveraging our scale in high-growth and emerging markets
Opened Customer Experience Centers in India and South Korea
Opened Pharma and Biotech Customer Solution Center in Shanghai, China
Expanded clinical trials operationin Suzhou, China
Another great year of growth in China Continuous investments to meet growing and evolving customer needs
2018 2019
$2.5B
$2.8B
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Internal capacity expansionsTargeted M&A
Acquired world-class facility from pharma customer
Added new capabilities
Completed our Patheon integration and continued our three-pronged investment strategy to expand and strengthen our CDMO offering
Strengthening ourvalue proposition
Invested in ourstate-of-the-art facilities
to meet high customer demand
Expanding our networkin select areas
GlaxoSmithKline Cork, Ireland API
Delivering a unique value proposition to our Pharma and Biotech customers
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Thank you
Strengthening our industry leadership
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Our guiding principles for managing through the pandemic
• Ensure the safety of our colleagues
• Maintain business continuity to enable and support our customers
• Manage the company appropriately to position ourselves for an even brighter future
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Our Mission: Response to COVID-19 is a powerful example
We enable our customers to make the world healthier, cleaner and saferWe enable our customers to make the world healthier, cleaner and safer
Providing personal protective equipment for those on the front lines
Developed FDA EUA COVID-19 testing kits and
instruments to fight COVID-19 globally
Shifting resources to make hand sanitizer for
colleagues and customers
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89%89%
Revenue by Product
11%11%
Consumables
Instruments /Services
QIAGEN: Strengthening our unique customer value proposition
21%21%
32%32%
47%47%
EMEA
Americas
Asia Pacific / Rest of World
Revenue by Geography
• A leading global provider of molecular diagnostics and sample preparation technologies
• Product portfolio serves high-growth markets
• 2019 Revenue: $1.53B
• Adj. operating income margin of 28%
• 5,100 employees globally
Note: Financials reflect LTM as of December 31, 2019
52%52%Revenue by Customer
48%48%Life
SciencesMolecular Diagnostics
QIAstatSyndromic testing
QIAcuitydPCR systems
(launching mid-2020)
QuantiFERONIGRA immune response tests
QIAgilityAssay prep systems Bioinformatics
DNA / RNA / ProteinPurification kits
Attractive Revenue Profile
QIASymphonyAutomated sample prep and
assay setup
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Strategic rationale for acquisition of QIAGEN
• Expands specialty diagnostics portfolio with attractive molecular diagnostics capabilities, including infectious disease testing
• Complements leading life sciences offering with innovative sample preparation, assay and bioinformatics technologies
• Provides opportunity to leverage our industry-leading capabilities and R&D expertise to accelerate innovation and address emerging healthcare needs
• Leverages Thermo Fisher’s extensive commercial and geographic reach to expand customer access to QIAGEN’s product portfolio
• Delivers attractive financial benefits and shareholder value creation through our PPI Business System, including our proven integration approach
• Expands specialty diagnostics portfolio with attractive molecular diagnostics capabilities, including infectious disease testing
• Complements leading life sciences offering with innovative sample preparation, assay and bioinformatics technologies
• Provides opportunity to leverage our industry-leading capabilities and R&D expertise to accelerate innovation and address emerging healthcare needs
• Leverages Thermo Fisher’s extensive commercial and geographic reach to expand customer access to QIAGEN’s product portfolio
• Delivers attractive financial benefits and shareholder value creation through our PPI Business System, including our proven integration approach
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We are committed to doing business the right way
EnvironmentInnovating to serve our
customers while consciously minimizing our own footprint
ColleaguesEmbracing unique perspectives
to reach our full potential as one global team
CommunitiesMaking a difference worldwide with an emphasis on promoting
STEM education
OperationalIntegrity
Ensuring proper practices and ethics throughout our business
and relationships
• We take deliberate actions to address sustainability issues today – in environmental, social governance and economic areas – in order to strengthen our business for tomorrow’s customers, colleagues and communities
• Our approach focuses in areas that are aligned to our strategy and material to our stakeholders
In alignment with our Mission
Our investments create long-term value and ensure a sustainable future for all stakeholders
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The unrivaled leader in serving science and one of the world’s most admired companies
An incredibly talented global team that brings diverse perspectives, collaborative energy and a passion to excel every day
Our customer-centric culture delivers a unique value proposition and sustained competitive advantage
Our unwavering commitment to innovation and to leadership in digital science enables our customers to make the world healthier, cleaner and safer
An exceptional track record of consistentlydelivering strong financial performance
Our team is aligned to achieve our 2030 Vision