Thermo Fisher Scientific at Bank of America Health Care Conference - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

JON WOOD, ANALYST, BANK OF AMERICA: PDF copies can be assessed by those of you viewing the presentation via webcast. Good morning. I am Jon Wood. I am very pleased to have -- announce Marijn Dekkers and Ken Apicerno here from Thermo Fisher. I will turn it over to Marijn.

MARIJN DEKKERS, PRESIDENT, CEO, THERMO FISHER SCIENTIFIC: Good morning everybody. Thank you for inviting us first time as a spokesman. I am going to give a very brief overview of the Company, some integration updates, updates on our growth strategy and financial updates. And then the intent is to spend the majority of the time on Q&A.

So let me get started with the Safe Harbor, which I'm not going to read. Non-GAAP measures, I won't read that either. Just a quick snapshot of Thermo Fisher Scientific. We refer to ourselves as the world leader in serving science. And this has a lot to do with the fact that when you go into a laboratory of many other companies that are presenting at this conference, you will see a lot of the products and the services that we sell. And we're actually in essence a tool provider to the life sciences industry.

So you walk into a lab, you see a variety of things. You could see major analytical instrumentation, like on the left, one of our key mass spectrometers, the Orbitrap, a big instrument that is a leading instrument in its field. Too on the right a laboratory bench with a lot of the different consumables that are being used day in, day out provided by Fisher.

The snapshots, we will have approximately $9.5 billion of revenues this year, more than 30,000 employees. So a very fragmented customer base which is typical for our industry. We estimate to have about 350,000 customers. And then from a capabilities point of view we have the most complete portfolio of any competitor in our industry. And our claim to fame so to speak is two things. One is world-class technology, and secondly we have unmatched capabilities to reach this fragmented customer base through our commercial and service strength. And this is obviously a result of the legacy capability of the Fisher catalog.

We have two premier brands in the Company, Fisher Scientific and Thermo Scientific. And our mission is to enable our customers to make the world healthier, cleaner and safer.

Here you see some pie charts. On the left, 54% consumables, 30% instrumentation, so heavily it is a consumable rich Company I would say. In the middle, life sciences and health care make up two-thirds of our total customer base. And then the global reach, you see we're relatively underpenetrated in Asia, particularly China and India. And I will comment on that a little later on a little more.

The achievements in the past six months, it has actually been a busy 12 months because we announced our merger with Fisher back in May of last year. We closed it in November, and have actually made very good progress on the integration. We committed to $75 million of cost synergies in 2007, and we're very well on track to deliver that. The total synergy will be $200 million by the end of year three. And $150 million of that is cost synergies, $50 million coming as the profit of revenue synergies.

On item three here we are implementing a strategy for achieving long-term revenue synergies. There's a number of topics here. I'm going to come back to that as a separate chart, and we will walk through each of these topics quickly and make some comments. I would be happy to make take more questions on it later.

…