INVESTOR & ANALYST MEETING December 16,...

INVESTOR & ANALYST MEETING December 16, 2015

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 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 and enhanced products and services 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 recently acquired Pall Corporation and achieve the anticipated benefits of that transaction, our ability to successfully consummate the separation of Danaher into two public companies and realize the anticipated benefits of that transaction, 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 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 and 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, 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 2014 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2015. 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 web site, www.danaher.com, under the heading “Investor Events,” and event name “Danaher 2015 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” refer to year-over-year growth unless otherwise indicated.

http://www.danaher.com/

Agenda

11:00 am Welcome Matt Gugino 11:05 am Opening Remarks Tom Joyce 11:35 am Diagnostics

Life Sciences & Pall Q&A

Arnd Kaldowski Dan Daniel & Rainer Blair Kaldowski, Daniel, Blair

12:25 pm Lunch All 1:10 pm Fortive Corporation

Transportation Technologies Q&A

Jim Lico Martin Gafinowitz Lico, Gafinowitz

2:05 pm Closing Remarks & Guidance Tom Joyce 2:15 pm Q&A Tom Joyce 2:30 pm Program End

OPENING REMARKS Tom Joyce, President & CEO

Agenda

Portfolio Overview

Current Update

2015 in Review Strengthening our competitive advantage with DBS Investing in high-impact organic growth opportunities Optimizing our portfolio to improve and sustain our market-

leading positions

Danaher Today

Outstanding portfolio of businesses

Dental Life Sciences & Diagnostics

Test & Measurement

Industrial Technologies Environmental

Water Quality $2.0B

Gilbarco Veeder-Root $1.6B

Instruments $2.1B

Dental $2.7B

Product ID $1.6B

Automation $0.8B

Diagnostics $4.9B

Life Sciences $2.4B

Matco/Hennessy $0.6B

Pall $2.8B

Aggregate revenues for FY 2015E.

Sensors & Controls $0.6B

Specialty Industrial $0.4B

DBS is Our Culture

Current Update

Portfolio Overview

Current Update


leading positions

Reaffirmed 4Q 2015 adjusted EPS guidance of $1.25-1.29 4Q margins tracking well, offsetting incremental order weakness in

industrial-oriented businesses Taking additional cost actions in 4Q to benefit 2016

Pall transition and Fortive launch both progressing well

Expect ~$100M in 2016 cost savings at Pall Separation expected to close in 3Q 2016

2016 Guidance

Anticipate core revenue growth of 2-3% Initiated adjusted EPS guidance range of $4.80-4.95

Current Update

2016 adjusted EPS guidance implies 12-15% earnings growth

2015 in Review

Portfolio Overview

Current Update


leading positions

Top line outperformance in challenging macro environment Targeted investment spend, attractive end markets and business models drove solid

core growth ≥MSD growth at WQ, GVR, Life Sciences, Diagnostics, Fluke, Matco and PID

Core margin expansion while continuing to invest Core OMX of 75 bps >100 bps core OMX at Environmental, T&M and Industrial Tech GM up ~100 bps, helping fund long term investments R&D and S&M spend* up ~40 bps

Solid FCF and earnings performance Expect 24th consecutive year of FCF>NI

2015 Highlights

DBS driving strong performance All figures on this slide are for the nine months ended October 2, 2015 unless otherwise indicated. *As a % of sales.

DBS in Action @ Nobel Biocare

Enhancing commercial execution with DBS Transformative Marketing Funnel Management discipline

Amplifying core growth profile New product launches: NobelActive WP, NobelParallel Increased Feet-on-the-Street 20% in HGMs Digital workflow solutions: added 10,000th Nobel

Clinician customer in 3Q

Significant operating margin expansion DBS implementation driving >10% productivity

improvement Reduced indirect spend and improved W/C turns ~25%

DBS making a meaningful impact only one year in

2014 2015E Core sales growth % LSD MSD

Core OMX ~100 bps >300 bps

Portfolio Overview

Current Update


leading positions

2015 in Review

Relative Outperformance in 2015E

DBS continuing to drive meaningful share gains

MSD core growth

Commercial execution Expanding LatAm footprint

MSD core growth

Funnel Management Technology leadership

MSD core growth

New product innovation Funnel Management

15th consecutive quarter ≥HSD core growth

HGM execution

Product innovation & service

DD core growth

VOC driving innovation Franchise expansion

MSD core growth

Accelerated Product Development Transformative Marketing

Product ID

Investing in new product innovation ~40%* new product vitality in 2015 Esko developing new/digital products

Staying ahead with expanded service capability Videojet Remote Service reducing customer downtime

and cost-to-serve Videojet service revenues up ~15% in 2015E Data-driven service driving penetration

Using bolt-on M&A to augment core growth

Esko: digital asset management with MediaBeacon Expanded “track and trace” capabilities with Laetus

Share gains continue at Product ID

2015E vs. 2014

Core sales growth % MSD

Core OMX >100 bps

*Equipment only

Water Quality

Water Quality outgrowing the market by nearly 2X

Expanding global capabilities Hach’s localized products, service and sales driving

high-teens growth in China ChemTreat growing DD in Latin America for 12

consecutive quarters

New product innovation simplifying customer workflows at Hach Real Time Control (RTC) solutions Portable Parallel Analyzer (PPA)

M&A enhancing product offerings and global reach Reactivos extends Hach’s coverage in Mexico Sutron & Lufft Mess complement Hach Environmental’s

offerings

2015E vs. 2014

Core sales growth % MSD

Core OMX ~100 bps

Portfolio Overview

Current Update


leading positions

2015 in Review

2015 Portfolio Moves

Exciting and transformational year for Danaher

Closed $13.6B acquisition, largest in our history

Announced 2016 separation into two independent, publicly traded companies, and

One year in at

Completed disposition of to

Announced 11 additional acquisitions for ~$1B YTD

Pall Update

Closed acquisition ahead of schedule in August Financed in a very favorable interest rate environment for

highly-rated companies

Infusion of experienced DHR talent to accelerate adoption of DBS 12 senior leaders from Danaher Focusing on operational improvements Investing to accelerate growth and enhance go-to-market

activities

Now expect >$100M cost savings in 2016 Initial expectation was $60M per year starting in 2016 Anticipate ~$0.07 of adjusted EPS accretion in 2015, plus

incremental ~$0.40 in 2016

Pall off to a solid start

Revenue Gross Margin Operating Margin Free Cash Flow

Post-Separation Danaher

Strong growth, free cash flow and earnings profile

ROW 6%

NA 42%

EU 23%

HGM 29%

Diagnostics 30%

Life Sciences

15%

Product ID

10% Dental 16%

Water Quality

12% Pall Ind 8%

Pall LS 9%

Business

Geography

$16.5B 60% Recurring

>50% Mid-teens >100% FCF/NI Ratio

All figures on this slide based on 2015E.

Business Characteristics Market leading positions and outstanding brands MSD organic revenue growth anticipated Resilient business models with large installed base and

significant aftermarket exposure Expect strong FCF and balance sheet with bias toward M&A

Increasing environmental, healthcare and food safety regulations Proliferating digital trends Improving standards of care in HGMs

Secular Growth Drivers

Danaher’s Opportunity

United by resilient business models with significant room to improve through DBS

All revenue figures are aggregate for FY 2015E. *As a percent of 2015E sales.

BeckmanCoulter

Pall Dental Otherbusinesses

2015E Business OP Margins Revenue Recurring Revenue*

Water Quality $2.0B 55%

Product ID $1.6B 40%

Life Sciences $2.5B 50%

Diagnostics $4.9B 80%

Pall $2.8B 75%

Dental $2.8B 60%

Danaher $16.5B 60%

>20%

Mid-teens

~1/2 of total DHR revenue

Summary

Exciting year with the team executing well in a challenging environment

DBS helping to deliver core growth, margin expansion and share gains across the portfolio

Pall and separation provide expanded opportunity and renewed focus for driving future results

Committed to creating long-term shareholder value

DIAGNOSTICS Arnd Kaldowski, Group Executive

Agenda

Diagnostics Overview & 2015 Highlights Radiometer & Leica Biosystems

Beckman Coulter Update

Improving the customer experience Accelerating growth through commercial execution and

innovation Building the right team to drive results and foster DBS culture

Summary

80%

20%

Consumables/ServiceEquipment

Diagnostics Platform

Customers Hospital labs Reference labs Hospital critical care Histopathology labs

Growth Drivers Rapid growth in healthcare expenditures in HGMs Greater investment in preventative and predictive medicine Skilled labor shortage & cost pressures necessitating

automated solutions

Market Details Market Size ~$29B Growth Rate MSD

2015E Financials Revenue ~$4.9B OP Margin High teens Revenue Breakdown

Exceptional product portfolio coupled with scaled, global presence

39%

20%

34%

7%

NA EUHGM ROW

Geographic Mix

All financial metrics based on 2015E.

2015 Highlights

Strengthening our leading diagnostics portfolio All figures on this slide are for the nine months ended October 2, 2015 unless otherwise indicated.

Beckman Dx continues to improve MSD core growth and gaining share in Immunoassay, Automation

and Urinalysis 500+ bps core OMX improvement since acquisition

Gaining share and expanding margins at Radiometer and Leica Biosystems

Investing in innovation and HGMs S&M in HGMs and R&D spend both increased >10% Launched Veris, our random access Molecular platform

Strong start at MicroScan and Devicor Devicor double digit core growth

Radiometer and LBS Highlights

Radiometer and Leica Biosystems continue to take share All figures on this slide are for the nine months ended October 2, 2015 unless otherwise indicated.

MSD core revenue growth or better for 5th consecutive year Advanced Staining up DD

Key product launches at LBS

Q2: Aperio VERSA, digital research Scanner Q3: CV5030 TM, next generation H&E stainer Q4: Aperio LV1, desktop Scanner with real-time

sharing

Devicor acquisition off to a strong start DBS growth and lean tools already contributing

HSD core revenue growth for 5th consecutive year AQT continues strong with >20% core growth

Continued investments in sales channel Rebuilding, co-locating NA team with Beckman

enabled turn-around to MSD growth Continued expansion of direct business in HGMs

with >15% FOTS additions and 3 new direct geographies

Hemocue core growth accelerating to MSD only two years after acquisition Wins in India and Middle East related to transition of

hemoglobin testing to primary care


Diagnostics Overview & 2015 Highlights Radiometer and LBS


Improving the customer experience Accelerating growth through commercial execution and

innovation Building the right team to drive results and foster DBS culture

Summary

Winning with Danaher

2011 2015E Core Revenue Growth Flat MSD

Gross Margin % ~40% High 40s

Operating Margin % ~10% >15%

Working Capital ~$0.8B ~$0.5B

Runway for accelerated core revenue growth and continued margin improvement *Includes BEC-Dx and BEC-LS

Accelerating growth Focus on improving customer experience,

quality and commercial execution Investing in innovation Retention and win rates significantly improved R&D investment run rate increased ~$100M FOTS in HGMs increased >30% since 2011

Driving Productivity ~$350M in cost savings vs. $250M estimate* Simplified the complex, inefficient org structure Improved productivity and reduced indirect

spend

Broadening solutions with acquisitions of MicroScan, Normand and Iris

Our First Priorities: Quality Remediation and Customer Satisfaction

DBS critical to remediate quality issues and improve customer satisfaction

Regulatory compliance Before: 3 FDA warning letters, Troponin

restrictions By 2013: warning letters closed, FDA issued

approval for Troponin I assay Process simplification Before: extremely complex, cumbersome

quality system process with >3,600 procedures Current quality system: ~1,900 procedures,

nearly 50% reduction

Reliability of supply Before: significant reagent stock-outs, low OTD Now: >95% OTD

Product quality Before: several instruments below customer

expectations and reliability benchmarks Now: reduced instrument failure rates by >50%

Technical service delivery Before: bottom quartile among IVD players in

US in independent study Now: #1, #2 positions in same study

Quality Management System Customer Support & Product Quality

Investing for Growth

Strengthening commercial coverage in HGM Added >400 FOTS since acquisition Focus on China, Brazil, India, Middle East DD core growth in HGMs

Building global R&D capabilities Added >350 associates to product development India and China development centers with >100

associates combined New products adding >150 bps to 2015E growth Launched Veris and DxH500 in 2015

Funnel Management & Transformative Marketing Continuing to expand installed base Transformative Marketing increased funnel >$100M

Just beginning to see impact from investments and remediation efforts

+LSD

+LSD

+MSD +MSD

2011 2012 2013 2014 2015E

Core Revenue Growth Year-over-year

Flat

Driving Productivity

>$300M in cost reductions helping to fund growth and improve margins

~10%

>15%

2011 2015E

Operating Profit % of sales

Simplified organization to increase accountability and drive results Removed several management layers Reduced headcount by ~1,000 or >8%

Focused on improving manufacturing productivity and reducing indirect spend ~$150M savings from procurement and other

material costs Indirect spend reduced ~10% Reduced capital expenditures >40%

Reduced structural costs >$150M in annual savings ~20% reduction in annual lease expense

Working Capital Improvement

>$300M reduction in working capital since acquisition

AR: Daily Management drives visibility and prioritization

Inventory: Danaher Materials System and improved forecasting process drove 35% reduction through 2014

AP: More diligent usage of procurement card and supplier negotiations

4.5 4.9 5.2

6.4 6.8

2011 2012 2013 2014 2015E

Working Capital Turns

Building a Winning Team

Establishing a foundation for organizational health and company growth

Built a bench, now developing the next generation of Danaher leaders Internal fill rate up >2X from 2011 to 2015 Rigorous succession planning and

development of high potentials

Attracted diverse leadership and talent Talent funnel up 300% from 2011 to 2015

Simplified processes and organization to increase accountability Removed 2 management layers in customer

facing organization

Exporting talent to other Danaher OpCos Several Beckman senior leaders now at Pall

Post-acquisition Leadership

Team

Retained Beckman Leaders

Molecular Diagnostics RA/QA

Human Resources

Infused Danaher Leaders

President Operations Finance Marketing Service

Added External Hires

Sales Med Affairs

Promoted Internal Beckman Talent

Product Management R&D Legal

Summary

Solid year for our Diagnostics platform

Share gains continue at Radiometer/LBS; recent acquisitions off to a good start

Beckman is an outstanding story so far and continues to progress ahead of our initial expectations

Exceptional diagnostics portfolio with opportunities for future success

LIFE SCIENCES & PALL Dan Daniel, Executive Vice President

Rainer Blair, Group Executive

Agenda

Life Sciences Overview & 2015 Highlights

Pall Overview Biopharma Opportunity Priorities

DBS tools and training Focus on the customer with on time delivery Improving profitability while accelerating growth

Summary

Life Sciences

Customers Government, academic and clinical research Food & beverage, forensics, hospital/reference labs Pharma/biotech

Growth Drivers Evolution of life science research Growth of chronic diseases and infections HGMs investing in basic and applied research capacity

Market Details Market Size ~$15B Growth Rate MSD

2015E Financials Revenue ~$2.5B OP Margin Mid/high-teens

Geographic Mix Revenue Breakdown

NA EUHGM ROW

9% 38%

27%

26%


35% 65%

Leading global brands serving attractive markets All figures based on 2015E revenues.

2015 Highlights

Positioned for a strong 2015 finish and driving long-term results

MSD core growth with >30 bps OMX (>100 bps ex-FX) HSD core growth at SCIEX last two years New products driving relative outperformance in flow cytometry Expanded reported gross margin 60 bps and OP margin >150

bps over the last three years

Investing in innovation HSD R&D as % of sales for platform Significant new product launches in 2015, including:

SCIEX: X500R Mol Dev: ImageXpress Confocal BEC-LS: Cytoflex LMS: DVM6, DMi8

Continuing portfolio evolution with addition of Pall

All figures on this slide are for the nine months ended October 2, 2015 unless otherwise indicated.

Sustained Outperformance at SCIEX

Focus on innovation and new market penetration driving market share growth

+LSD

2005-2009 2010-2015

Core Growth Investments in innovation driving above-market growth Completely refreshed product portfolio since acquisition

2009: limited product portfolio with gaps Only 4 instruments

2015: >15 instruments covering all markets

Commercial initiatives driving penetration in new markets Focus on higher-growth markets: clinical, food, biologics Significant expansion in HGM, from <15% of sales in 2009 to

>25% in 2015E

X500R QTOF is game changer in routine testing Unparalleled price performance in segment Ease-of-use, scalability to meet various workflows

+MSD/HSD

Pall Overview




Summary

Pall

2015* Financials Revenue ~$2.8B OP Margin Mid-teens

Revenue Breakdown

Outstanding, highly strategic asset with very attractive business model

* FYE July 31, 2015

Geographic Mix

NA EU APAC

32%

41%

27%


75%

25%

BioPharma 2015* Revenue: ~$1.0B

Medical 2015* Revenue: ~$0.2B

Food & Beverage 2015* Revenue: ~$0.2B

Process 2015* Revenue: ~$0.8B

Microelectronics 2015* Revenue: ~$0.3B

Aerospace & Defense 2015* Revenue: ~$0.2B

Life Sciences: ~$1.5B

Industrial: ~$1.3B

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.filtersource.com/c127/Pall-Corporation-c166.html&ei=-91LVZXKBcfUggSy3IH4CA&bvm=bv.92765956,d.eXY&psig=AFQjCNGhcqa5nOrHiw2lDRv9rtuOmdmFBA&ust=1431121778780230

Outstanding company with leadership positions in filtration, separation and purification, and an attractive business model 75% of revenue is recurring/consumables Multiple levels of differentiation: switching cost, regulatory, hard to emulate MSD growth driven by HSD+ growth in Biopharma

High-quality business with significant potential for operational improvement using DBS High impact opportunity with DBS

Substantial earnings accretion, strong cash flow and significant M&A runway potential Now expect ~$100M of cost savings in 2016 Significant working capital opportunities Multiple vectors for bolt-on acquisitions

A unique transformational opportunity

Strategic Rationale

Pall: Biopharma Opportunity & Priorities




Summary

The Biopharma Opportunity

$4B+ addressable market growing LDD; Pall touches every step of process

Core growth market is biologic-based therapies 7 of 10 top-selling drugs are biologics >900 biologic drugs in the approval pipeline Impact from genomics revolution yet to come

Attractive market with >80% recurring revenue

and high gross margin Filtration/separation technologies are key enablers;

manufacturing volume drives growth Regulation and performance create barriers to entry Single-use technology adoption: >20% growth at Pall

Significant investment to strengthen product portfolio and accelerate growth

DBS in Action at Pall

Pall associates taking DBS to a new level

Significant DBS deployment immediately at close >400 senior leaders trained as DBS champions >70% of all associates completed DBS introduction

training Enhanced the playbook used at BEC

Outstanding combination of Pall and DHR talent >90% senior Pall level 2/3 leaders retained 12 senior leaders from Danaher (Pres, CFO, Ops) >50 DHR associates facilitating DBS implementation

DBS is gaining traction >50 Kaizen events held since close

“Lean Conversion the DANAHER WAY works, and we

are having fun!” - Pall senior operating leader

“The input and attention to the AR team has been remarkable. Everybody has talked about it! Thank you for engaging upper

management and other departments on our behalf.”

- Pall accounts receivable associate

Focus on the Customer

Improving delivery to drive greater customer satisfaction

On time delivery to customer is our #1 priority DBS enabled immediate process improvements

7 plants identified for lean conversion, prioritized based on customer impact

Performed >25 “Lean” kaizens to date

Before After

~65% >95%

2010 Q4 2015E

A Look Back at BEC OTD Performance

Team Metric Improvement

Profile Output/Associate/Hour 302%

Lab MicroFunnel Plus Output/Associate/Hour 74%

Lab Microfunnel Output/Associate/Hour 65%

Biopharm Line 6 Output/Associate/Hour 91%

Biopharm Line 4 Change Time 71%

Recent “Lean” Kaizen Activity at Pall Puerto Rico Facility

Accelerating Growth and Improving Profitability

DBS a catalyst for cost structure improvement, growth acceleration

Accelerating growth via commercial execution Transformative Marketing: improving visibility in targeted applications Funnel Management: accelerating deal cycle time and improving win rates Speed Design Review: accelerating new product introduction

DBS helping to drive anticipated ~$150M gross margin improvement Lean conversion to drive productivity Simplification of supply chain, freight and scrap DHR procurement helping to reduce direct and indirect material costs

Reducing structural costs to deliver expected ~$150M improvement Public company costs Reduction in indirect spend Simplifying processes and organization

Summary

Leading Life Sciences businesses executing well in attractive markets; uniquely positioned for long-term success

Pall is an outstanding company, unique transformational opportunity for Danaher

DBS is leading the way at Pall, sharpening focus on profitability and accelerating growth

Giving Back

Each year, Gilbarco provides the funds and manpower to build a home for a

family in need in the Greensboro, NC

area.

Pall associates put their heads together to “brave the shave” and raise funds for

St. Baldrick’s mission to fund the

gap in lifesaving childhood cancer

research.

Tektronix’ Full Circle Partnership with the

Red Cross connects

associates’ philanthropic goals and interests with

Red Cross’ services, education, outreach and relief

efforts.

Beckman Coulter is proud to partner with the National

MS Society in support of the more

than 2.1 million people living with MS worldwide.

The American Heart Association's

mission to promote physical activity and heart-healthy living is near and dear to

Videojet associates.

FORTIVE CORPORATION Jim Lico

Agenda

Fortive Overview & 2015 Highlights

Fortive Strategic Priorities

Summary

Overview

Anticipated Capital Structure Investment grade credit rating Strong bias towards M&A

Growth Drivers Changing environmental regulations Energy efficiency, safety and security requirements Growing industrial base in high growth markets Global trend toward connected devices, software and digital service

Future Leadership Jim Lico, President and CEO – DHR leader for 19 yrs Chuck McLaughlin, CFO – DHR leader for 8 yrs

2015E Financials Revenue $6.2B Gross Margin High 40s OP Margin High teens FCF/NI >100%

Revenue Breakdown

Professional Instrumentation

48%

Industrial Solutions

52%

Strong margin and FCF profiles. Structural growth trends. Experienced team. All financial metrics based on 2015E.

Business Geography

NA 58%

EU 16%

HGM 22%

ROW 4%

Advanced Instrumentation & Solutions

Field Solutions Product Realization

Revenue $3.2B GM% ~40% OP Margin High teens

Businesses

Strong brands, leading market positions in attractive industrial verticals

Industrial Technologies Professional Instrumentation

Sensing Technologies

Franchise Distribution

Automation & Specialty

Transportation Technologies


Revenue $3.0B GM% >50% OP Margin >20%

2015 Highlights

Separation progressing well 90% of L1 organization in place Strong team with extensive DBS experience

Superior execution and growth investments driving LSD/MSD core revenue growth

Gaining share at Fluke, Gilbarco, Matco Accelerating innovation at Tektronix, Matco, Fluke, JVS

DBS driving improvements and creating opportunity for future growth

>60 bps OMX across portfolio Solid free cash flow driven by improved working capital Reinvigorating M&A pipeline with two GVR bolt-ons so far, and expect more to come

Separation now expected to close in Q3 2016 All figures on this slide are for the nine months ended October 2, 2015 unless otherwise indicated.

Fortive Strategic Priorities

Focused, growth-oriented strategy

Enhance our organic growth profile and generate margin expansion Leverage our strong FCF to deploy capital through strategic and financially-disciplined M&A Deliver outstanding earnings performance and unlock shareholder value using the Fortive Business System (“FBS”)

Fortive Opportunity

Margin Expansion

• ~50+ bps core OMX • Fall-through of ~30%+

Core Growth

• GDP/GDP+ core growth • EMV a meaningful driver

for the next several years

Acquisition Growth

• Spend FCF on acquisitions each year

• 100%+ FCF/NI conversion

Top Quartile Earnings Growth

Value creation model to deliver top quartile earnings growth

+ + =

2002 2008

Operating Profit (Fortive businesses)

2002 2008

Revenue (Fortive businesses)

Impact of M&A (2002 – 2008)

Opportunity to run the playbook again starting in 2016

+Mid-teens CAGR

~40 deals from 2002–2008*

+HSD CAGR

*Excluding acquisitions greater than $400M

DBS Tools Web Marketing, Voice of Customer, Accelerated Product Development

DBS (“FBS”) in Action

DBS still key to strong performance after decades of success

Core Growth

Operating Margin

Working Capital

Qualified leads up ~30% over last 3 years DD sales growth over last 3 yrs

Up >300 bps over last 3 yrs

Reduced DSO 5 days over last 2 years 3 turns improvement over last 2 years

DBS Tools Value Selling, Visual and Daily Management,

Quality System Basic

Core Growth

Operating Margin

Working Capital

>20% revenue growth over last 3 years Development of China-specific designs 3X JVS engine brake penetration over 3 years

Ensuring cost-competitive solutions for customers worldwide

WCT up 50% over last 3 years

Fluke

Customers Industrial maintenance professionals Electricians, contractors and engineers Medical technicians Scientists

Market Details Market Size ~$5B Growth Rate LSD/MSD

2015E Financials Revenue ~$1.1B OP Margin >25%

Geographic Revenue Breakdown

NA EUHGM ROW

Leading player with strong brand in an attractive market

Growth Drivers Increasing market demand for connected devices Continued development in high growth markets Innovative new products and evolution of technology Proliferation of the digital world

Global leader in the manufacture, distribution and service of electronic test tools and software for industrial electronic installation, maintenance

and service, calibration and quality control

41% 32%

21%


6%

Fluke Organic Growth Opportunities

Pursue technology-driven, long-term growth opportunities

Build on Fluke Connect: expand beyond hardware into adjacent software, data, SaaS, asset health, APIs Expand diagnostic tools: focus on reliability and predictive maintenance workflows in thermography, vibration and critical power

Drive further expansion in adjacent bio-medical businesses Extend reach and broaden footprint in HGMs

Penetrate current/new markets with recently-launched 3rd generation localized products Expand business in India, SE Asia and Latin America Expand low-cost manufacturing capability

Accelerate Fluke growth rate through continued market expansion

Fluke’s Financial Evolution

Organic growth initiatives and M&A driving ~20% ROIC; additional runway

Revenue $340M

OP Margin ~10%

Investment $550M

ROIC ~5%

Revenue ~$500M

OP Margin ~15%

26 Acquisitions: 1st Year

Contribution

Revenue ~$250M

OP ~$200M

Revenue >$1.1B

OP Margin >25%

Investment $1,380M

ROIC ~20%

1998 2015E

+ + = TODAY AT ACQUISITION

ACQUISITIONS GROWTH/ IMPROVEMENT

Summary

Fortive will be a high-quality diversified industrial growth company Strategy focused on creating value through organic growth, operating margin expansion and disciplined M&A Fortive Business System will be the core of our operating model, the cornerstone of our culture and our competitive advantage

Pursuing a proven model for long-term shareholder value creation

TRANSPORTATION TECHNOLOGIES Martin Gafinowitz, Group Executive

Agenda

Transportation Technologies Overview & 2015 Highlights

Building the Platform Healthy cadence of strategic M&A Adjacencies enhancing growth profile DBS driving continuous improvement

Summary

Transportation Technologies

Customers Major and regional oil companies Service stations Local and long-haul trucking fleets

Growth Drivers Environmental regulations, including air quality Payment security, both in-store and outdoor Larger fueling networks requiring control and automation Fleet managers looking to improve costs and efficiencies

Market Details Market Size ~$9.0B Growth Rate LSD/MSD

2015E Financials Revenue ~$1.6B OP Margin >15%

Geographic Mix Revenue Breakdown

NA EUHGM ROW

7%

55% 17%

21%


35% 65%

Market leader in fueling and fleet management with adjacent growth paths All financial metrics based on 2015E.

2015 Highlights

Well-positioned to drive sustained outperformance

Solid MSD core revenue growth MSD/HSD growth in core dispenser business Point-of-sale core growth CAGR ~20% last 3 yrs Growing installed base driving additional revenue

opportunities

Core OMX >100bps while investing for growth Capital equipment investment up 70% in

preparation for EMV volume increase Organizational and technical platform

consolidation between Navman and Teletrac

Strategic bolt-on acquisitions enhancing portfolio Odysii All figures on this slide are for the nine months ended October 2, 2015 unless otherwise indicated.

Building the Platform

Transportation Technologies Overview & 2015 Highlights

Building the Platform Healthy cadence of strategic M&A Adjacencies enhancing growth profile DBS driving continuous improvement

Summary

2002 2004 2006 2008 2010 2012 2014 2015

Building Transportation Technologies

Deployed ~$1.0B of capital on 19 acquisitions since 2002 Significantly improved growth profile with moves into adjacent markets, including

telematics 15+ years of retail petroleum build out adding high growth POS and service revenue Leading position in fuel management with adjacent expansion into telematics

http://www.google.com/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRxqFQoTCJPbpu_u08cCFYLZPgodQRkKvQ&url=http://www.bkequip.com/home/brands/&ei=jJHkVZPlLIKz-wHBsqjoCw&psig=AFQjCNFVQd59PURoGXdm0x2hrmLzDUCBhw&ust=1441129224106490

Adjacencies Enhancing Growth Profile

Building on our installed base, not “just a dispenser company”

2002-2008 2009-2015E

Core Revenue Growth

+LSD/MSD

FLAT w/ higher volatility

Payment & Point-of-Sale MSD market growth Positioned in indoor and outdoor PMT and POS Drivers: US & Europe EMV regulations, c-store

sophistication, mobile phone engagement

Operational Services HSD market growth Cloud services complementing installed base of

ATGs, POS and dispensers Drivers: customer network complexity, cost

effectiveness of cloud solutions

Payment

Customers upgrading indoor and outdoor terminals with EMV-compliant systems

Driven by liability shift from credit card companies Widespread data security breaches validate need for

enhanced card security and encryption

Partnership with VeriFone brings most secure and highly-regarded encryption to market

Significant growth driver over next several years >$500M cumulative market opportunity

US EMV opportunity expected to add 1%+ to Fortive annual core revenue growth

Telematics

Leading player in highly-fragmented $4B market HSD core growth past 3 years Surpassed 400k units in 2015, top 5 globally Focused on mid-market fleets (20-500 unit fleets)

Uniting Teletrac and Navman Consolidated front and back office across entire

business New combined platform launched in Q3 with improved

performance and R&D synergy

Transforming businesses to address software systems in vertical markets

Private delivery fleets: routing/scheduling, driver safety Construction: load and operations efficiency

Driving increased adoption in an underpenetrated market

DBS in India

Revenue

Operating Margin

Working Capital

The GVR Coimbatore Journey: Acquired for market position in 2011; loss making, poor quality & delivery; DBS transformed business into leading domestic supplier and profitable export center

>1500 bps OMX since 2011 driven by DBS implementation

Accelerated Product Development Funnel Management

2X revenue Improved OTD to 98% from 80% Exporting dispensers, meters and

pumps

Danaher Reliability System Multi-year kaizen activity for cost

~1500 bps OMX Service margins up DD Winning in one of the most

competitive global cost markets

Daily Management Visual Management

Improved to ~10 turns in 2015E from <2 turns in 2011

Financial Evolution

Organic growth initiatives and M&A driving mid-teens ROIC w/ additional runway

Revenue $420M

OP Margin ~5%

Revenue ~$550M

OP Margin HSD

18 Acquisitions: 1st Full Year Contribution

Revenue ~$630M

OP ~$300M

Revenue ~$1,600M

OP Margin >15%

Investment $1,400M

ROIC Mid-teens

2002 2015E

+ + = ACQUISITIONS GROWTH/ IMPROVEMENT*

*Includes Veeder-Root

Summary

Outstanding high-return platform built on organic initiatives and strategic M&A

Market-leading installed base and technology leadership providing opportunities to accelerate growth

Adjacent market opportunities improving growth profile and providing additional acquisition runway

DBS helping drive continuous improvement

SUMMARY & OUTLOOK Tom Joyce, President & CEO

What You Heard Today

Committed to creating long-term shareholder value

Exciting year with the team executing well in a challenging environment

DBS helping to deliver core growth, margin expansion and share gains across the portfolio

Pall and separation provide expanded opportunity and renewed focus for driving future results

2016 Outlook

Core revenue growth of 2-3% with ~35% fall-through

Pall incremental contribution of $0.40

F/X headwind of ~$225M in revenue and ~$0.06 in EPS, primarily in 1H

Tax rate of 23-24%, consistent with 2015

Anticipated EPS seasonality (as % of 2016 adjusted EPS guidance) Q1 ~21% Q2 ~25% Q3 ~25% Q4 ~29%

Adjusted EPS guidance of $4.80-4.95 Includes Pall and other acquisitions closed in 2015; excludes future acquisitions that have not yet closed.

2015 adjusted EPS(mid-point of guidance)

FX Productivity benefits,lower sharecount offset

by inflation, growthinvestments

Pall contribution Contribution from 2-3%core revenue growth

and late-2014acquisitions

2016 adjusted EPSguidance

*See Appendix for details on special items.

2016 Adjusted EPS Guidance

2016 adjusted EPS guidance implies 12-15% growth y/y

($0.06) $0.05

$0.11 - $0.26

$0.40

$4.30

$4.80 - $4.95

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