INVESTOR & ANALYST MEETING December 15, 2016filecache.investorroom.com/mr5ir_danaher/401/2016...

INVESTOR & ANALYST MEETING

December 15, 2016

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 the 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, our ability to integrate the recent acquisitions of Pall Corporation and Cepheid and achieve the anticipated 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,

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 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

found in the “Investors” section of Danaher’s website, www.danaher.com, under the heading “Events & Presentations,” and event name “Danaher 2016 Investor &

Analyst Meeting.” 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” or other period-to-period changes refer to year-over-year comparisons

unless otherwise indicated. We may also describe certain products and devices which have applications submitted and pending for certain regulatory approvals.

Forward Looking Statements

http://www.danaher.com/

Agenda

9:30 am Welcome Matt Gugino

9:35 am Opening Remarks Tom Joyce

10:05 am Life Sciences

Pall

Water Quality

Q&A

Dan Daniel

Rainer Blair

Lance Reisman

Daniel, Blair, Reisman

11:00 am Break All

11:20 am Diagnostics

Product Identification

Dental

Q&A

Arnd Kaldowski

Joakim Weidemanis

Amir Aghdaei

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

Diagnostics DentalLife

Sciences

Environmental &

Applied Solutions

Water Quality

Product ID

~$5.3B revenue ~$5.0B revenue ~$2.8B revenue ~$3.7B revenue

Building a multi-industry, science & technology company

All financial metrics shown reflect 2016 estimated (“2016E”) revenues from continuing operations.

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

2016 Highlights

~20% adjusted EPS growth y/y expected in 2016

* As a % of total revenues.

All figures on this slide are for the nine months ended September 30, 2016 unless otherwise indicated.

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

What You’ll Hear Today

DBS is Our Culture

DBS Principles and 8 Core Value Drivers

Expand capabilities, drive consistent execution, sustain results

Leadership

LeanGrowth

Quality (External PPM)

On-Time DeliveryCustomer

Associate

Shareholder

Internal Fill Rate

Retention

Core Growth

OMX

Cash Flow / WC Turns

ROIC

“OMX” is Operating Margin Expansion; “WC” is Working Capital

Leadership & Talent

Sustaining the DBS culture across Danaher as we grow and evolve

“The Best Team Wins”

Expectations of Danaher leaders

To lead through DBS

Build leadership pipeline for their

business, succession plans for critical

roles

Talent development helps fuel

performance

Export talent across Danaher

Ensure DBS leadership at acquisitions

Infused DHR

Leaders

Retained

Pall Leaders

Promoted

Pall Talent

Added

External

Hires

Senior Leadership Team

President

CFO, Finance

Operations

Service

General Managers

Technology

IT

Business Presidents

General Managers

HR

Legal

Legal

Compliance

Outstanding Portfolio – Overview

Strong growth, free cash flow and earnings profile

ROW

7%

NA

40%

EU

24%

HGM

29%

Diagnostics

30%

Dental

16%

EAS

22%

By Business

By Geography

Life

Sciences

32%

All financial metrics based on 2016E unless otherwise indicated.

~55%GROSS

MARGIN

Mid-teens

OPERATING

MARGIN

>100%FREE CASH

FLOW TO NET

INCOME

~$17BREVENUE

Danaher Today

Increasing environmental, healthcare and food safety

regulatory requirements and changes

Improving standards of care in high growth markets (HGM)

Proliferation of digital trends

Outstanding brands

Large installed base

Business Characteristics

Market leading positions

Resilient business models

Strong Secular Growth DriversBy Mix

Consumables

65%

Equipment

35%

2002 Today

Revenue $4.6B ~$17B

HGM %* ~8% ~28%

GM %* 39% ~55%

Consumables %* < 15% ~65%

Associates 29,000 60,000+

Portfolio – Evolution

Strategic priorities have helped drive portfolio evolution

Environ-

mental

Dental

T&M

Life Sciences

& Diagnostics

Industrial

Technologies

Water

Quality

12%

Diagnostics

30%

Dental

16%

Life

Sciences

32%

Environ-

mental

Dental

T&M

Life Sciences

& Diagnostics

Industrial

Technologies

Test &

Measurement

15%

Environmental

15%

Tools

32%

Other/

Niche

17%

Motion

21%

PID

10%

Strengthening our


with DBS

Investing in the highest

impact growth

opportunities

Improving and

sustaining our market-

leading positions

*As a % of total revenues.

Portfolio – Key Initiatives

Recent strategic initiatives helping to optimize Danaher’s portfolio for the long-term

Recent Key

Strategic Acquisitions

2015

2014

2016

2016

Biopharmaceuticals

Premium Implants

Digital Dentistry

Molecular

Diagnostics

Portfolio Optimization

Spin-off

of Fortive

Building Scale at the

Platform Level

1999

“Beachhead” Asset +

Adjacencies, Bolt-ons

2002

Portfolio – Business Model

United by resilient business models with strong recurring revenue streams

Well-established installed base drives

aftermarket exposure, recurring revenues

Reduced revenue volatility

Increased customer intimacy

Higher margin opportunities enable

reinvestment

Reinvestment fuels growth

Consistently increased R&D, S&M

Funded by higher GM, lower G&A

Contributions of recent M&A

Consumables

65%

Equipment

35%

~75% ~95% ~75%All figures shown as a % of 2016E revenues.

Portfolio – Growth Opportunity

Average age of the portfolio today is ~8 years

Approximately ½ of our total revenue has been part of Danaher for 5 years or less

DBS Driving

Core Revenue Growth

Water Quality

LSD MSD

Product ID

LSD MSD

Radiometer

LSD MSD/HSD

Anticipated Core Revenue Growth

of Recent Acquisitions

MSD

MSD

DD

MSD

1999 20162005 2011

Growth Opportunity – Strategic Investment

Outperformance by investing in the highest impact organic opportunities

Investments in R&D

Outperformance

Commercial Initiatives

Market Penetration

Building Scale

High Growth Markets

R&D + >50bpsAS A % OF REVENUE

LAST 4 YEARS

S&M + >100bpsAS A % OF REVENUE

LAST 4 YEARS

LDD CAGRHGM REVENUE

LAST 4 YEARS

X500R/B

2011

Today

DHR China Dental Revenue

>$150M

~$25M

+MSD Core Revenue Growth

each of the last 7 years

Accelerated Product Development

Speed Design Review

Funnel Management

Transformative Marketing

Case Study Case Study Case Study

Portfolio – Margin Opportunity

Significant room to expand gross and operating margins

All figures referenced are based on 2015 weighted averages.

< 5 years > 12 years

Margins: “New vs Tenured”

OpCos owned < 5 years OpCos owned >10 years

Mid-

teens

~50%

20%+

55%++ >500bps

GM

OPM

GM

OPM

Water Quality

Low-teens ~25%

Product ID

Low-teens ~25%

Radiometer

High-teens >25%

1999 20162005 2011

DBS Driving Operating Margins

Approximately ½ of our total revenue has been part of Danaher for 5 years or less

Margin Opportunity – Meaningful Runway

Expect 50-75+ bps of core OMX annually for Danaher, driven by DBS

Early innings at Pall, Nobel, Cepheid

Significant runway at recent acquisitions

Lean tools, direct/indirect spend, pricing

2nd wave at Beckman Coulter

Expanded installed base

Bolt-ons enhance higher margin opportunities

Dental platform being treated as a

“new acquisition”

Represents >$10B (~60%) of

$17B revenue DHR portfolio

Free Cash Flow – A Key Differentiator

Expect FCF to exceed Net Income for the 25th consecutive year in 2016

All figures referenced reflect Danaher results from continuing operations.

Danaher FCF / NI Conversion

$1.9B$2.2B $2.3B

~$2.5B

115%135% 133%

0%

50%

100%

150%

200%

250%

300%

$-

$1,000

$2,000

$3,000

2013 2014 2015 2016E

~125%FCF/NI

FCF

Pursuing value creation opportunities with a tailored integration for each deal

M&A – Our Strategic Approach

M&A Considerations – What We Look For

Secular and structural

growth drivers

Fragmented

(consolidation

opportunities)

Competitive market

position

Strong brand and/or

channel

Consistent revenue

visibility

Higher margin

businesses

Focus on ROIC

DBS opportunities

Sustainability

Synergies with Danaher

OpCos

Combination of value and

growth deals

MARKET

COMPANY

VALUATION

M&A – Where We Focus

Building a strong portfolio to drive shareholder value

Large Value Creating

Opportunities

Platform Extensions

with Synergies

Technology Additions

to PlatformsHigh Growth Markets

Consistent upward ROIC trajectory over the long-term

M&A – ROIC Performance

Start

In 5 years

MSD

MSD

MSD

High-

teens

TODAY

TODAY

TODAYStart

Average ROIC of

OpCos owned

5-10 years

Average ROIC of

OpCos owned

>10 years

Average ROIC of

OpCos owned

< 2 years

DD

DD

All figures referenced are the weighted average ROIC for each group of OpCos shown.

Summary

Building a multi-industry, science & technology company







LIFE SCIENCES

Dan Daniel, Executive Vice President

Life Sciences Overview

Leading global brands serving attractive markets

ROW

9%NA

35%

EU

29%

HGM

27%Consumables

60%

Equipment

40%

By Mix


Mid-teensOPERATING

MARGIN

~$5.3BREVENUE

Life Sciences Revenue 2016E

Evolution of life science research

Growth of chronic diseases and infections

HGM investing in basic and applied research capacity

Food & beverage,

forensics, hospital/

reference labs

Growth Drivers

Pharma/biotech

Government, academic

and clinical research

Customers

By Geography

~$40BMARKET

SIZE

2016 Highlights

DBS having an immediate impact at Pall*

MSD core growth and >400 bps OMX, >150 bps GM

Improved OTD by >2,000 bps

>$20M in working capital improvement

Continuing to expand margins, driving investment in innovation

across the platform

Core OMX >75bps, HGM revenue up HSD

>100 new product launches in 2016/2017, including a 50% increase in

LS Tools

Expanded growth and margin opportunity

Entered highly attractive chromatography consumables market with

Phenomenex acquisition

Today ~75% of operating profit from OpCos owned < 7 years

Positioned for a good 2016 finish and driving long-term results

* Results since acquisition.


How We Win in Life Sciences

Strong global brands supported by high level of innovation

Focused on areas of highest growth and highest customer impact

Best-in-Class analytical technologies focused

on key applications

Leverage global sales force to target highest

growth segments

Service and low-cost manufacturing provides


Compete on performance, speed and accuracy

in biopharma, academic, applied and clinical

research verticals

Examples of DBS Tools

Broad set of DBS tools provide levers for growth and operational improvements

Leadership

LeanGrowth

LeanGrowth Leadership

Speed Design

ReviewLean Conversion

Executive Champion

Orientation

Accelerated Product

Development

Value Stream

Mapping

Danaher Leadership

Program

Market

Segmentation

Sourcing Workshop &

Supply Base

Management

Building

Inclusive Leaders

Sales Force

Initiative/

Value Selling

Production Preparation

Process

Situational

Leadership

Funnel ManagementDanaher Materials

System

Strategic

Negotiations

Transformative

Marketing

Customer Service &

Support

Performance for

Growth

Broad Presence in Biologic Drug Development Process

Lead

Generation /

Optimization

Target

selection &

validation

~$1B

Company

DHR

Revenue

Cell Line

Development

Drug

Production (Process Dev./Clinical

and Commercial)

Pre-Clinical /

Clinical

Process

Development

Market

Growth

Workflow

+ MSD + HSD + HSD + HSD/

LDD+ HSD + HSD

~$500M

~$1.5B biologics revenue exposure across our Life Sciences Platform

Identified unmet market needs and used existing

technology to quickly develop new product

DBS Driving Growth –New Product Innovation in Biologics

Vi-CELL MetaFLEXBeckman Coulter Life Sciences

Unique new products to create value for our customers, expand addressable market by >$200M

22 hrsA DAY

UPTIME

< 6 mosTO

LAUNCH

< 60 secTURN-

AROUND

X500B QTOFSCIEX

Tests for cell viability, a critical component of

biologics drug research and process development

Internal collaboration (Radiometer technology)

First high-res Mass Spec solution

specifically designed for complex

biologics characterization

Easy-to-use: accessible to even

novice MS users

Compact footprint

Differentiated BioPharmaView

software enables faster

decisions

Increases exposure to fast-

growing biologics market

HSDMARKET

GROWTH

DBS Driving Growth – Innovation & Commercial Execution at BEC-LS

New product innovation

DBS disciplined tollgate process

Breakthrough innovation: Flow Cytometry

Salesforce alignment & incentives

From geography to specific

customer/market needs

Sales & service – driving the right

behaviors to sell more of what we have

Demand generation

Market visibility & lead generation from

marketing and service leads

Funnel Management for growth execution

<$50M >$100M

~70% ~90%

~55% ~80%

<10% ~85%

< 30% >80%

LSD MSD

R&D – Vitality

R&D – NPD focus

R&D – On-time to

market

Marketing – Visibility

Marketing – Lead

conversion

Core Revenue Growth

2014 2016E

New product innovation & commercial execution drove >200 bps share gains

DBS Driving Growth & Lean – SCIEX

Franchise re-positioned for continued outperformance

Replaced JV structure with customer

focused model, improved processes

with DBS

Targeted investments in innovation

driving above-market growth

Completely refreshed product portfolio

Integrated, best-in-class software

capabilities

X500R/B QTOF are game changers in

routine testing

Commercial initiatives driving

penetration in new markets and

higher-growth segments

LSD MSD/HSD

~50% Mid-50s

~7% ~10%

- 300 bps + >600 bps

< 15% >25%

1 >15

2010 to

2016E

2005 to

2009

Core Revenue Growth

GM %*

R&D %*

OMX

HGM %*

# of New Products

* As a % of total revenue.

SCIEX – Phenomenex Acquisition

A leading provider of

chromatography consumables

All financial metrics on this slide based on 2015 unless otherwise indicated.

Highly attractive SCIEX adjacency with high consumables mix

Strong brand, leading position in +MSD growth separations

consumables market

Opportunity to drive growth, productivity improvements, and

enhanced GTM capabilities using DBS

Strategic Rationale

Expect double-digit ROIC in less than 5 years

>60%GROSS

MARGINS

~25%OPERATING

MARGINS

~95%CONSUMABLES

REVENUE

Summary

38

Outstanding global brands built on best-in-class

technologies, in attractive markets

DBS growth tools driving new product innovation

Significant opportunity going forward through

organic execution and attractive value creation

via M&A

PALL

Rainer Blair, President

Pall Overview

Outstanding, highly strategic asset with a very attractive business model

ROW

11% NA

30%

EU

33%

HGM

26%Consumables

75%

Equipment

25%

By Mix


~$20BMARKET

SIZE

~$2.8BREVENUE

Pall Revenue 2016E

Expanding production of biopharmaceuticals

Increasing global standards of medical care

Environmental and safety regulations

Growing complexity in electronics manufacturing

Process industries,

micro-electronics

manufacturing

Growth Drivers

Pharma/Biotech/Medical

Food/Dairy/Beverage

producers

CustomersProcess

7%Energy

30%

MicroE

26%

Machinery

17%

Biopharma

52%

SUT, Lab

21%

By Geography

By End-Markets

LS Ind.

Food & Bev

14%

Medical

13%

Aero

20%

Pall’s Biopharma Opportunity

$4B+ addressable market growing LDD

Pall Touches Every Step of Bioproduction

Large and growing pipeline of biologic molecules

Single-use technologies (SUT) adoption still in

early innings

Continuous bioprocessing still to come

Significant Runway in Biopharma

>2,500 biologic molecules

in the approval pipeline, +15% y/y

9 out of 12 FDA cleared biologics last year

specified Pall products in their processes

7 of 10 top-selling drugs

are biologics

< 20% of current processes

for marketed drugs use SUT

2016 Highlights

Improving operational and commercial execution

Increased on-time delivery (OTD) by >2,000bps and

improved working capital turns by ~20%*

Increased sales funnel by 70%*

Reducing manufacturing and operating costs

Achieved >$100M in year 1 cost savings vs. initial

$60M target

Accelerating innovation through reinvestment

+50% increase in new product launches in 2016 across

Life Sciences and Industrial

Reduced development time for “top 10” projects by 25%*

Pall is off to a strong start

5nm PTFE Filters (MicroE)

STR Bioreactors (Biopharma)

MSDCORE

GROWTH

>400bpsOMX

SINCE ACQ.

>150bpsGROSS

MARGINSINCE ACQ.

* Results since acquisition.


Tailored Acquisition Integration with DBS

Rapid DBS adoption has been a critical driver of Pall’s great start

Leadership

LeanGrowth

Tailoring the Integration Using the Danaher Business System

>300KAIZEN EVENTS

SINCE CLOSE

>50DHR ASSOCIATES

FACILITATING

DBS

>70%OF ASSOCIATES

COMPLETED DBS

TRAINING IN THE

FIRST 90 DAYS

Enhanced the Beckman playbook

Prioritized the highest-impact issues

Deep DBS “bench” in action

Pall associates fully embracing DBSImproving execution

Reducing costs

Accelerating innovation

Key Areas of Focus

DBS Driving Lean – Kaizens in Action

Improvements in OTD enabling Pall to maximize value provided to customers

OTD improvement from 82% to 95%

Enabled same day response vs next day

Productivity improvement of 84%

Reduced floor space required by 25%

New cell for lower

volume products &

same day / next day

requests

Floor space

freed up

Lean Conversion

Timonium, MD – Manufacturing Cell

Lean Kaizen

Pall Ilfracombe, UK – Facility

Team 1: OTD from 85% to 96%

Team 2: 80% reduction in avg. stock outs

Team 3: 75% reduction in data entry time

Team 4: 60% reduction in reworks

All financial metrics on this slide represent changes since acquisition.

DBS Driving Lean & Growth –Operational & Commercial Execution

Better execution driving increased margins, accelerating growth opportunities

Meaningful gains in quality and delivery

>250 operational process improvements (kaizens)

19 line moves, 4 plant/warehouse consolidations

Significantly reduced costs

>$40M savings from procurement, scrap reduction

Reduced logistics costs by ~10%

Reduced plant labor by 100bps (as % of sales)

DBS commercial initiatives driving better go-to-

market capabilities

Stream-lined sales funnel process to improve win rates

Marketing campaigns improving market visibility by 3x

and sales opportunities by 5x

2015 2016E

On-Time Delivery

+2,000BPS

Marketing Generated

Sales Opportunities

2015 2016E

>5X

All financial metrics on this slide represent changes since acquisition unless otherwise indicated.

DBS Driving Growth – Product Innovation

DBS enables increased investment in innovation for competitive advantage

Recent Technology RecognitionPall has a strong innovative foundation

>350 scientists worldwide across 11 facilities

>1,300 patents held, >680 pending, add ~25/year

Accelerating new product development

Compressed cycle times with standard DBS tools

35 new products launched (vs 24 in 2015)

On-time to market project tracking up +2,700bps y/y

Preserving entrepreneurial spirit with DBS rigor

Focus on larger “breakthrough” projects

Implemented new DBS-based framework to rapidly

assess and convert concepts to actionable projects

Cadence

Acoustic

Separator

BioSMB GMP (Biopharma)

Changing the Game in

Continuous BioProcessing

Summary

Well-positioned to win, with exposure to high-

growth end markets and critical applications

DBS helping drive cost savings, improve

commercial initiatives and accelerate innovation

Pall is off to a great start with plenty of runway

ahead

WATER QUALITY

Lance Reisman, Group Executive

Water Quality Overview

Strong fundamental growth drivers and diverse, global customer base


Mid-20sOPERATING

MARGIN

~$2.1BREVENUE

Increasing regulatory requirements and changes

Water scarcity/drought conditions, sustainability

Demand for full workflow solutions, efficiency

Growth Drivers

Customers

~$15BMARKET

SIZE

Municipal water facilities (waste & drinking water)

Industrial applications (food & beverage, pharma,

chemical, power)

Research & environmental, agriculture/irrigation

ROW

2%

NA

52%

EU

18%

HGM

28%

Consumables

60%

Equipment

40%

By Mix

Water Quality Revenue 2016E

By Geography

2016 Highlights

Investment in new products and go-to-market driving share gains

Expanding global presence, capabilities

+DD increase in Feet-on-the-Street (FOTS) in NA, HGM

+HSD service revenue growth

Bolt-on acquisitions helping accelerate growth

7 deals over last 3 years expanding adjacencies and

increasing presence in HGM

Continued focus on innovation

Trojan UVFlex winning in growing reuse space

New product launches over past 3 years driving MSD

growth in drinking water vertical in 2016


How We Win in Water Quality

End User Municipal Industrial Environmental

Served

Customers

Municipal drinking and

waste water facilities

Industrial plants

(Power, F&B, O&G, etc.)

Government and scientific

research agencies

ApplicationMonitor and treat

drinking and wastewater

Monitor and treat inflow,

utility and discharge water

Measure natural resource

water (seas, rivers, weather)

Brand

Equity

Product

AdvantagesRegulatory and workflow in

drinking & waste water; Reuse

Deliver application expertise via

products, service, proprietary

chemicals

End-to-end monitoring with

differentiated capabilities

Commercial

Advantages

Direct selling (1,000+ Associates in Water Quality) & channel partner network

Dedicated resources per OpCo focused on targeted segments

Strategic initiatives (Transformative Marketing, Funnel Management, tender execution, services)

Winning with strong brands, product & commercial innovation across segments

Expanding Market Position via M&A

Recent bolt-on successes augment core growth, provide additional M&A runway

Expanding into

Meteorology

Adding Communications

Capabilities

Str

ate

gic

Rati

on

ale

Leading, differentiated

communications position

Complementary portfolios

Direct channel strength in

NA, HGM project success

Adds critical part of water

cycle management to

portfolio

Positive macro trends

Channel and project synergy

Helping WQ gain share

Strong footprint, direct

reach

“Beachhead” for future

regional expansion

Expansion in

Latin America


DBS is our sustainable competitive advantage, evolving over time


Speed Design


Executive Champion

Orientation

Accelerated Product

Development

Value Stream

Mapping

Danaher Leadership

Program

Market

Segmentation

Sourcing Workshop &

Supply Base

Management

Building

Inclusive Leaders

Sales Force

Initiative/

Value Selling


Process

Situational

Leadership


System

Strategic

Negotiations

Transformative

Marketing

Customer Service &

Support

Performance for

Growth

LeanGrowth

Leadership

DBS Driving Growth & Lean –Continued Success

Continuous improvement

carries on 10+ years later

Problem Solving Process

Lean Conversion

Driving profitability improvement while gaining ~150bps of share last several years

Lean

Using DBS growth initiatives

to drive share gains

Commercial execution

New products

Utilizing platform capabilities

Funnel Management

Transformative Marketing

Growth

REINVESTMENT +70bpsR&D / S&M*

SINCE 2011

+200bpsON-TIME

DELIVERY

YTD

+110bpsGM

SINCE 2011

+400bpsOMX

SINCE 2011

+2X

+15%

LEAD GEN.

REVENUE

HACH 2016

BOOKINGS

GLOBAL KEY

ACCOUNTS

HACH 2016* As a % of total revenues.

DBS Building Leadership –Developing Leaders at Danaher

Stretch roles

Application of key

learnings, develop

Delivering results

Experiential learning in

trainings

EXPERIENCE

COACHING

TRAINING

Development plan

execution

Senior leader coaching

Mentoring

Best practice sharing

Coaching guides

70%

20%

Utilizing a combination of development programs and processes

Situational Leadership

General Manager

Development Program

Danaher Leadership

Program

10%

DBS Building Leadership –Talent Development

Water Quality developing leaders across the platform and Danaher

Water Quality is a “net exporter” of talent

Filling leadership needs via internal fill

Candidate pool > existing senior positions (~2x+)

New Presidents: typically held 4-6 developmental

positions, 10 years at Danaher

26SENIOR

LEADERS

President

CEOHGM

President

VP

DBS Office

Senior Leader Retention

65% 70%80%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016E

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

2014 2015 2016E

Internal Fill

President

2014 2015 2016E 2014 2015 2016E

Developed, promoted

and exported from WQ

over the last 3 years

>95% >95% >97%

Summary

Exposure to highly attractive segments within

water, with breadth and scale across the portfolio

Continuous improvement enables high-impact

organic and inorganic growth investments

DBS helping Water Quality develop leaders

across the platform and Danaher

Giving Back

X-Rite partners with

Junior Achievement

to help empower

and inspire young

people through

entrepreneurship,

financial literacy

and work-readiness

programs.

Hach is proud to

support an

organization

dedicated to

improving lives

across the globe

with the most basic

of human needs:

clean water.

Beckman Coulter’s

long-standing

partnership with

ACS allows the

team to support

their local

communities and

many associates

impacted by cancer.

Direct Relief uses

innovative

approaches for the

efficient delivery of

medical aid, serving

the needs of

communities close

to our associates

around the world.

Oral Health

America’s mission

to improve

communities’

access to oral

health care is a

cause near and

dear to KavoKerr

associates.

DIAGNOSTICS

Arnd Kaldowski, President & Group Executive

Diagnostics Overview

Exceptional product portfolio coupled with scaled, global presence

ROW

7%

NA

39%

EU

19%

HGM

35%Consumables

80%

Equipment

20%

By Mix

Mid-

teensOPERATING

MARGIN

~$5.0BREVENUE

Diagnostics Revenue 2016E Rapid growth in healthcare expenditures in HGM

Greater investment in preventative, predictive medicine

Skilled labor shortage, cost pressures necessitating

automated solutions

Hospital critical care

Histopathology labs

Growth Drivers

Hospital labs

Reference labs

Customers

By Geography

~$35BMARKET

SIZE


2016 Highlights

MSD core growth at LBS, Radiometer with continued OMX across the platform

Driving productivity to fund growth

OMX ~100bps and continuing to expand R&D, FOTS

Line of sight to 20% OPM

Increased momentum of new platform launches

BEC Dx expects meaningful new product revenue generated from

recent product launches

Continued share gains across certain product lines and

geographies

RAD, LBS share gains in Blood Gas, POC Immunoassay, Adv. Staining

HSD sales growth across HGM

Cepheid acquisition accelerates our molecular strategy

Complementary addition with growth, OMX runway at DHR


Cepheid Overview

Significant growth runway, with tremendous upside through the platform & DBS

Cepheid is a leading player in the fast-growing, highly

attractive molecular diagnostics (MDx) industry

$6B market growing HSD/LDD, sizeable market penetration runway

Only ~1/3 of US hospitals have MDx capabilities

Largest installed base, broadest test menu in MDx

Further strengthens Danaher’s $5B Diagnostics platform

Meaningful opportunities with DBS

Operational efficiency, profitable growth, increased scale

(including in HGM)

>$600MREVENUE

~50%GROSS MARGIN

~75%CONSUMABLES

REVENUE

DDCORE

REVENUE

GROWTH


How We Win in Diagnostics

Breadth of Offering

Scaled global

distribution and

service network

Serving large

installed bases

in all major

geographies

Automation

DBS services

Innovative clinical workflow solutions enable customers to improve operations

Leading

Products

BOND / Advanced Staining

Fastest turn-around time

in the market

Chemistry / IA & Automation

Highest throughput

in the market

Highest quality, broadest

product line for critical

care testing at hospital POC

Surgical,

Intensive Care

Anatomic Pathology,

Cytology,Molecular Medicine Labs

Stem Cell

Transplant

Hematology,

Chemistry, Microbiology

Blood Banking,

Urinalysis

Point of Care

Oncology,

Tumor Boards

Emergency

Neo-natal

Examples of DBS Growth Tools

Broad range of DBS tools deployed to drive growth

Leadership

LeanGrowth


Speed Design


Executive Champion

Orientation

Accelerated Product

Development

Value Stream

Mapping

Danaher Leadership

Program

Market

Segmentation

Sourcing Workshop &

Supply Base

Management

Building

Inclusive Leaders

Sales Force

Initiative/

Value Selling


Process

Situational

Leadership


System

Strategic

Negotiations

Transformative

Marketing

Customer Service &

Support

Performance for

Growth

DBS Driving Growth – in HGM

Application of DBS growth tools in HGM

enables strong execution, market penetration

Building broader commercial capabilities

Expanding direct channels to HGM end-users

RAD, BEC Dx China salesforce now >2x vs 2011

BEC Dx associates in LatAm, ME now >3x vs 2011

Localizing products – particularly in China

LBS launched new products developed by China R&D team

BEC Dx opened R&D center in Suzhou for instruments,

reagents: produce 120+ different assays

BEC Dx R&D engineers in China & India now >6x vs 2014

DD Diagnostics revenue CAGR in HGM over the last 5 years

BEC Dx Revenue:

Going Deeper in China

$-

2012 2013 2014 2015 2016E

>10%CAGR

Dx HGM Revenue 2016E

China

IndiaLatAm

Middle East

& Africa

E. Europe

& Russia

Other

~$1.8BREVENUE

DBS Driving Growth –New Product Innovation

Continued investment in R&D outpacing sales

growth

R&D spend: 2x sales growth over the last 2 years

Number of Dx R&D associates up >25% vs 2013,

BEC Dx up >30%

DBS tools accelerating time to market

Visual Project Management, Speed Design Review

BEC Dx projects on-time to market from <25% to ~70%

Increased momentum of new product

launches

Launched 8 new instruments in

2015/16 vs 2 in 2014/15

Diagnostics R&D +35% over the last 3 years, driving new product launch cadence

DxH500

Mid range

Hematology analyzer

ABL9

Blood gas analyzerVERIS

Molecular Diagnostics

Summary

Full scale offering across clinical diagnostics

Cepheid helps enhance our molecular

diagnostics offering and the entire platform

DBS growth tools accelerating new product

innovation and going deeper in HGM

PRODUCT ID

Joakim Weidemanis, Group Executive

Product ID Overview


ROW

4%NA

31%

EU

30%

HGM

35%Consumables

55%

Equipment

45%

By Mix


Mid-20sOPERATING

MARGIN

~$1.6BREVENUE

PID Revenue 2016E

Demand for brand consistency

Consumer product safety and traceability

Changing consumer behavior in HGM

Packaging used to drive demand, now a key element

in marketing campaigns

Packaging converters

& printers

Industrial products

Growth Drivers

Consumer packaged

goods (CPG)

Pharmaceuticals

Customers

By Geography

~$8BMARKET

SIZE

2016 Highlights

New product innovation and expanded service capabilities

drive share gains

Esko: new software platforms for workflow digitization

X-Rite: breakthrough appearance digitization offering

DD service revenue growth continues; increased new product vitality

Consistent DBS execution helping to fund reinvestment,

accelerate core growth

Sustainable productivity improvements, cost savings

~75bps core OMX

Bolt-on acquisitions augmenting core growth

Videojet: expanded traceability capabilities with Laetus

Esko: digital asset management with MediaBeacon

Videojet core revenue growth MSD or better in each of the last 7 years

All figures on this slide are for the nine months

ended September 30, 2016 unless otherwise indicated.

How We Differentiate and Win

Pharma inspection

Track and Trace

Marking and

Coding

Spectrophotometers

Color formulation SW

Color standards

Color workflow

Digital asset management

and distribution software

Packaging management, CAD and pre-press software

Flexography imagers

Packaging

Strategy

Packaging

Design

Artwork

Creation

Package

printing

Distribution

and Retail

Inline coding

and marking

2002

2015

2012

2013

2013

2015

Acquiring and extending capabilities to support simplification & agility of packaging value chain

+ 12 bolt-on acquisitions

“A

nch

or”

co

mp

an

ies

Bo

lt-o

ns


Broad range of DBS tools driving operational improvements and share gains

Leadership

LeanGrowth


Speed Design


Executive Champion

Orientation

Accelerated Product

Development

Value Stream

Mapping

Danaher Leadership

Program

Market

Segmentation

Sourcing Workshop &

Supply Base

Management

Building

Inclusive Leaders

Sales Force

Initiative/

Value Selling


Process

Situational

Leadership


System

Strategic

Negotiations

Transformative

Marketing

Customer Service &

Support

Performance for

Growth

Videojet – Consistent DBS Execution Funding and Accelerating Growth

Focused on continuous improvement

64 lean kaizens in 2016

Consistently improve manufacturing productivity ~5% each year

Continued material cost savings: procurement and value engineering

efforts drive ~5% savings annually

Expanded DBS application for process

innovation and productivity

Customer experience

Commercial growth

New product development

Disciplined DBS application driving cost savings, enabling growth investments

2014 2015 2016E

Operating Margin

Expansion

>200BPS

DBS Driving Growth –Transformative Marketing at Videojet

2013 2014 2015 2016E

“New” Customer

Equipment Revenue

Sales Engineer Productivity

Significant increase in qualified leads

Generated through sustained, multi-year

initiative

Digital and Tele-Lead generation +30% vs 2013

Expanding reach, improving messaging to

drive increased market productivity

Targeted contacts +135% since 2013

Organic web traffic +40% since 2013

Integrating with Funnel Management for

improved sales productivity

Commercial innovation added 100-200bps of growth

2013 2014 2015 2016E

+20%

+85%

DBS Driving Growth –Service Offering at Videojet

Growing through disciplined service

commercialization

Sustained DD growth over past 3 years

Differentiating portfolio to better address

customer needs, drive replacement

Offerings based upon usage, response needs

Drive customer productivity

Expanding Remote Service Solutions

Videojet “Connect”: significantly faster

response time, reduced cost to serve

Expanding to full product range and installed

base; using predictive analytics

Early innings of remote offering; differentiating with service to drive share gains

Printers Under

Service Contract

2014 2015 2016E2015 2016E

Fleet Connected

with Remote Service

4x +45%

DBS Driving Growth –Breakthrough Innovation at X-Rite

World leader in color management

Entering new market “beyond color” with

breakthrough technology

Digital Appearance Management

Footwear personalization drives >10x increase

in use of new materials and colors

Virtualizing “design → concept” workflow cuts

time to market by 60%, simplifies materials

management

Use of DBS accelerated project execution

40% reduction in design time

Initial sales figures realized sooner post-launch

DBS helps turn innovative concepts into profitable products in less time

Voice of the CustomerTo identify opportunity size and entry points

Digital Mechanical

Model

Digitally rendered close to

reality models, different

materials applied (digitally)

Speed Design ReviewAccelerated product development and launch

Summary

82

Differentiated product suite extending through full

packaging workflow

Focus on improvement driven by DBS contributes

to commercial and new product innovation

Continue to outgrow the market, expand margins,

execute M&A to augment growth

DENTAL

Amir Aghdaei, Group Executive

Dental Overview



Mid-

teensOPERATING

MARGIN

~$2.8BREVENUE

Global demographic trends – aging population

Growing middle class in high growth markets

Digitizing the dental practice

Cosmetic and aesthetics dentistry

Group practices

Schools, hospitals,

government

Growth Drivers

General practices

Specialists: Endo / Ortho

Perio / Surgical

Customers

~$20BMARKET

SIZE

Dental Revenue 2016E

ROW

6%

NA

51%

EU

23%

HGM

20%

Consumables

70%

Equipment

30%

By Mix By Geography

2016 Highlights

Approaching the Dental platform as a “new acquisition”

Improving performance trajectory

LSD core revenue growth and >100bps OMX

Nobel off to a great start: MSD growth, >500bps OMX since acquisition

Ormco, Equipment: LSD/MSD core growth, improving margins

Reinvesting: R&D up ~10%, commercial initiatives up 5%

Continued success in HGM

+45% HGM annual revenue over the last 3 years, >500 FOTS in HGM

A leading China dental player: >$150M sales, DD+ growth

Building scale at the platform level

KaVo & Kerr integration announced

Built platform digital center of excellence

Operational leverage: factory consolidation

Solid performance, good trajectory, more work to do


Dental Platform Evolution

Evolved into full-scale dental provider with equipment, consumables, implants

50%50%

2005 2013 2016E

$0.6B $2.1B $2.8B

~46% ~50% ~55%

~5% Low-teens Mid-teens

13% 18% >20%

<$25M $75M >$150M

10%

90%

70%

30%

Revenue

GM %*

OPM %*

HGM %*

R&D spend

Platform Repositioning

Brand consolidation

Focused leadership team

Facility rationalization

New product investment


Equipment Consumables

How We Win in Dental

Breadth of Offering Reach Execute with DBS

Leading brands in all

specialties

Seamless workflow

integration based on

digital technologies

Cover all dentists’

clinical needs

GrowthInnovation investment

Rigorous funnel management

drives share gains

Lean50+ kaizens per year drive

OP improvement, generate

reinvestment $ for growth

LeadershipAttract/retain the best talent –

especially in HGM

>3,000SALES

REPS

99%OF

DENTIST

OFFICES

>2,000COURSES

PER YEAR

Extensive portfolio, global partnerships, DBS is our competitive advantage

Breadth of Offering –Providing the Full Dental Solution

Transitioning the Dental platform from “Old World” to “New World”

Yesterday / Today: Point Solutions Today / Tomorrow: Integrated Workflows

Integrating, “owning” and optimizing

dentists’ workflows

Provide clinical know-how and efficiency

improvements, ‘easy to use’ digital integration

Cover entire dental workflows across Ortho,

Endo, Implant and Restorative

Nobel acquisition added incremental digital

and workflow capabilities

Equipment

Software / Digital

Consumables Full

Product

Suite

Diagnostics Treatment PlanningTreatment

Execution

Examples of DBS Lean Tools

Lean tools helping drive significant margin expansion at Dental


Speed Design


Executive Champion

Orientation

Accelerated Product

Development

Value Stream

Mapping

Danaher Leadership

Program

Market

Segmentation

Sourcing Workshop &

Supply Base

Management

Building

Inclusive Leaders

Sales Force

Initiative/

Value Selling


Process

Situational

Leadership


System

Strategic

Negotiations

Transformative

Marketing

Customer Service &

Support

Performance for

Growth

Leadership

Growth Lean

Dental as a “New Acquisition” –Margin Development

Line of sight to 20% operating margins

2015 2016E

+ >75BPS

2015 2016E

Gross

Margin

2015 2016E

2015 2016E

+ >100BPS

Operating

Margin

-50BPS

G&A*

+20BPS

R&D*


DBS Driving Lean –Ormco Example

DBS driving growth and margin improvement at Ormco

+20%ON TIME

DELIVERY

-75%PAST DUE

SHIPMENTS

+15%YIELD

-15%SQ FT

FOOTPRINT

+50%THROUGH-

PUT / VOL.

+2XINVENTORY

TURNS

-35%CYCLE

TIME

Series of Lean Kaizens(over the last 12-18 months)

5S tool storage improved

Heijunka level-loaded demand

Kanban deployed pull system

Revised cell layout for flow, productivity

+30%PRODUC-

TIVITY

Impact of

Lean Conversion

Created capacity to absorb

new product demand

Results in

2016E

>75bpsOMX Y/Y

MSDCORE

GROWTH

+10%R&D

SPEND Y/Y

Repositioning for Growth

Focused structure to facilitate improving core growth and margins

Consolidated Platform Structure

TodayUntil 2014

>10 OpCos

$50-$400M sales each

10 Presidents, CFOs,

et al.

Separate operations,

manufacturing sites

Limited leverage of

G&A / back-office

30% fewer

manufacturing sites,

sales offices

Brand consolidation

Consolidated

commercial leadership

Adding R&D, S&M

capabilities

Future

Build a

sustainable

foundation

based on DBS

Rejuvenated

innovation

Digitally

integrated

workflow

Summary

Breadth of product offering, full workflow

solutions are differentiators

Cost savings and platform consolidation driving

reinvestment into commercial initiatives and new

products, led by DBS

Runway to 20% OPM and improving core growth

SUMMARY & OUTLOOK

Tom Joyce, President & CEO

What You Heard Today

Committed to creating long-term shareholder value

Exciting year with the Team executing well

Outstanding portfolio with significant growth

and margin opportunities

Danaher Business System is our culture and

our competitive advantage

2017 Outlook

Core revenue growth of 3-4% with ~35-40% fall-through

Incremental contribution of ~$0.08* from Cepheid, Phenomenex, and

other 2016 acquisitions

Incremental F/X headwind of ~$375M in revenue and ~$0.08* in EPS

Tax rate of ~21%, consistent with 2016

Anticipated EPS seasonality (as % of 2017 adjusted EPS guidance)

Q1 ~21% Q2 ~25% Q3 ~24% Q4 ~30%

Adjusted EPS guidance of $3.85-3.95

Includes all acquisitions closed through 12/14/2016.*Impact to adjusted EPS

2016 adjusted EPS(mid-point of guidance)

FX Productivity benefits,lower interest expense

offset by highersharecount, inflation,growth investments

Contribution fromCepheid, Phenomenex,

and other 2016acquisitions

Contribution from 3-4%core revenue growth at

~35-40% fall-through

2017 adjusted EPSguidance

2017 Adjusted EPS Guidance

2017 adjusted EPS guidance implies 7-10% growth y/y

($0.08) $0.06

$0.20 - $0.30

$0.08

$3.59

$3.85 - $3.95

Non-GAAP Reconciliations


Danaher Corporation

Reconciliation of GAAP Financial Measures to Non-GAAP Financial Measures

Year-Over-Year Core Operating Margin Changes

Total

Company

14.90%

First nine months 2016 impact from operating profit margins

of businesses that have been owned for less than one year or

were disposed of during such period and did not qualify as

discontinued operations(0.45)

Third quarter 2016 gain on resolution of acquisition-related

matters 0.15

Acquisition-related transaction costs deemed significant, change in

control payments, and fair value adjustments to inventory, in each case

related to the acquisition of Pall Corporation and incurred in the third

quarter of 2015. 0.70

Fair value adjustments to Nobel Biocare acquisition-related

inventory incurred in the first quarter of 20150.20

Year-over year core operating profit margin changes for first

nine months 2016 (defined as all year-over-year operating

profit margin changes other than the changes identified in the

line items above) (Non-GAAP) 0.90

16.40%

Nine Month Period Ended October 2, 2015 Operating

Profit Margins from Continuing Operations (GAAP)

Nine Month Period Ended September 30, 2016 Operating

Profit Margins from Continuing Operations (GAAP)

Danaher Corporation


Gross Profit, Research & Development and Sales and Marketing Expense Excluding the Impact of Pall

Danaher Corporation

(GAAP)

Less Impact of Pall and Pall

acquisition-related items

("Pall Impact")

Danaher Corporation

excluding Pall Impact

(Non-GAAP)

Year over Year Change:

Gross Profit as % of Sales 110 Bps 20 Bps 130 Bps

R&D and S&M as % of Sales (80) Bps 170 Bps 90 Bps

Nine Month Period Ended September 30, 2016



Danaher Corporation


Reconciliation of Operating Cash Flows from Continuing Operations (GAAP) to Free Cash Flow from Continuing Operations (Non-GAAP)

$ in Billions

2013 2014 2015 2016E

Free Cash Flow from Continuing Operations ($ in millions):

Operating Cash Flows from Continuing Operations (GAAP) 2.4$ 2.7$ 2.8$ 3.1$

Less: purchases of property, plant & equipment (capital expenditures) from

continuing operations (GAAP) (0.5) (0.5) (0.5) (0.6)

Free Cash Flow from Continuing Operations (Non-GAAP) 1.9$ 2.2$ 2.3$ 2.5$

Ratio of Free Cash Flow to Net Earnings ($ in millions):

Free Cash Flow from Continuing Operations from Above (Non-GAAP) 1.9$ 2.2$ 2.3$ 2.5$

Net Earnings from Continuing Operations (GAAP) 1.7 1.6 1.7 2.0

Free Cash Flow from Continuing Operations to Net Earnings from Continuing

Operations Conversion Ratio (Non-GAAP) ˜115% ˜135% ˜133% ˜125%

Years Ended December 31



Danaher Corporation


Adjusted Forecasted Diluted Net Earnings Per Share from Continuing Operations

Year Ended

December

31, 2015

Actual

Low End of

Guidance

Range

High End

of

Guidance

Range

Mid-point

of

Guidance

Range

Year-Over-Change

(mid-point of

2016E guidance

compared to 2015)

2.47$ 2.86$ 2.90$

Pretax amortization of acquisition-related intangible

assets 0.56 A 0.81 A 0.81 A

Pretax acquisition-related transaction costs deemed

significant and fair-value adjustments 0.21 B - -

Pretax charge for early extinguishment of borrowings 0.26 C 0.26 C

Pretax gain on resolution of acquisition-related matters (0.02) D (0.02) D

Pretax gain on sales of investments (0.02) E (0.32) E (0.32) E

Tax effect of all adjustments reflected above (0.16) F (0.16) F (0.16) F

Discrete tax adjustments and other tax-related

adjustments(0.08) G 0.14 G 0.14 G

2.98$ 3.57$ 3.61$ 3.59$ 20%

1

Forecasted Diluted Net Earnings Per Share from

Continuing Operations (GAAP)

Forecasted Adjusted Diluted Net Earnings Per Share

from Continuing Operations (Non-GAAP) 1

The forward-looking estimates set forth above do not reflect future Fourth-Quarter 2016 gains and charges

that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance,

such as certain future gains or losses on the sale of investments, acquisition or divestiture-related gains or

charges and discrete tax items.

Year Ending December 31,

2016



Danaher Corporation

Reconciliation of GAAP Financial Measures to Non-GAAP Measures

Adjusted Forecasted Diluted Net Earnings Per Share from Continuing Operations Notes

A

Year Ending Year Ended

December 31,

2016 E

December 31,

2015

Pretax $ 567.8 $ 396.7

After-tax 424.9 313.4

B

C

D

E

F

G

Amortization of acquisition-related intangible assets in the following historical and forecasted periods ($ in millions) (only the pretax

amounts set forth below are reflected in the amortization line item above):

Discrete income tax gains net of discrete income tax charges incurred in the the year ($58 million) ended December 31, 2015 and Fortive

separation-related tax costs related to repatriation of earnings, legal entity realignments and other discrete matters ($99 million) in the

nine month periods ended September 30, 2016.

Fair value adjustments to inventory ($20 million pretax as presented in this line item, $15 million after-tax) incurred in the year ended

December 31, 2015, in connection with the acquisition of Nobel Biocare. Acquisition-related transaction costs deemed significant ($21

million pretax as presented in this line item, $16 million after-tax), change in control payments, and fair value adjustments to inventory

and deferred revenue, net of the impact of freezing pension benefits, in each case related to the acquisition of Pall Corporation and

incurred in the year ended December 31, 2015 ($107 million pretax as presented in this line item, $84 million after-tax) Danaher deems

acquisition-related transaction costs incurred in a given period to be significant (generally relating to Danaher’s larger acquisitions) if it

determines that such costs exceed the range of acquisition-related transaction costs typical for Danaher in a given period

Charge for early extinguishment of borrowings ($179 million pretax as presented in this line item, $112 million after-tax) for the year

ending December 31, 2016. The Company did not incur any charges related to the early extinguishment of borrowings in 2015, and

therefore no such elimination item is reflected in the calculation of Adjusted Diluted Net Earnings Per Share From Continuing Operations

for such prior period.

Gain on resolution of acquisition-related matters ($18 million pretax is presented in this line item, $14 million after-tax) for the year ending

December 31, 2016.

Gain on sales of investments in the year ended December 31, 2015 ($12 million pretax is presented in this line item, $8 million after-tax).

Gain on sales of investments in the year ending December 31, 2016 ($223 million pretax is presented in this line item, $140 million after-

tax).

This line item reflects the aggregate tax effect of all nontax adjustments reflected in the table above. In addition, the footnotes above

indicate the after-tax amount of each individual adjustment item. Danaher estimates the tax effect of the adjustment items identified in

the reconciliation schedule above by applying Danaher's overall estimated effective tax rate to the pretax amount, unless the nature of

the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in

which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.



Danaher Corporation


Adjusted Forecasted Diluted Net Earnings Per Share from Continuing Operations

Low End of

Guidance Range

High End of

Guidance

Range

3.13$ 3.23$

Pretax amortization of acquisition-related intangible

assets 0.91 A 0.91 A

Tax effect of all adjustments reflected above (0.19) B (0.19) B

3.85$ 3.95$

1

Year Ending December 31, 2017

Forecasted Diluted Net Earnings Per Share from Continuing

Operations (GAAP) 1

Forecasted Adjusted Diluted Net Earnings Per Share from

Continuing Operations (Non-GAAP) 1

The forward-looking estimates set forth above do not reflect future gains and charges that are

inherently difficult to predict and estimate due to their unknown timing, effect and/or

significance, such as certain future gains or losses on the sale of investments, acquisition or

divestiture-related gains or charges and discrete tax items.

A

Year Ending

December 31,

2017 E

Pretax $ 644.4

After-tax 509.1

B

Amortization of acquisition-related intangible assets as quantified below ($ in millions) (only the pretax amounts set forth below are

reflected in the amortization line item above):

This line item reflects the aggregate tax effect of all nontax adjustments reflected in the table above. In addition, the footnote above

indicates the after-tax amount of each individual adjustment item. Danaher estimates the tax effect of the adjustment items identified in

the reconciliation schedule above by applying Danaher's overall estimated effective tax rate to the pretax amount, unless the nature of

the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in

which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.

INVESTOR & ANALYST MEETING December 15, 2016filecache.investorroom.com/mr5ir_danaher/401/2016...

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