investor and analyst event july 9, 2013...key customers brand owners/designers printers and...

Investor and Analyst Event July 9, 2013

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 and 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, 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 reduction and other changes in the healthcare industry, risks relating to potential impairment of goodwill and other long-lived 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 defects and recalls, risks relating to product manufacturing, the impact of our debt obligations on our operations, 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, labor matters, international economic, political, legal 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 2012 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the first quarter of 2013. 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.

Agenda

1:00 pm Welcome Matt McGrew

1:05 pm Product Identification Overview Dan Daniel

1:30 pm Esko Carsten Knudsen

2:00 pm X-Rite Ron Voigt

2:15 pm Videojet Joakim Weidemanis

2:50 pm Q&A Dan Daniel

3:15 pm BREAK

3:30 pm Tours

5:00 pm Depart for Dinner

5:30 – 7:00 pm Dinner with Management

PRODUCT IDENTIFICATION Dan Daniel, Executive Vice President

Industrial Technologies Overview

~$20B Market Size

3-5% Long Term Market Growth

$3.4B 2012 Sales

75% Instruments | 25% Consumables / Service

~21% 2012 Operating Margin

Customers

45% NA

30% EU

25% ROW

Geographic Mix (as % of 2012 sales)

Consumer packaged goods

Global packaging & graphics

Machine and equipment OEMs

Medical equipment & devices

Continuing to shape / improve Industrial Tech…positioned for further growth

Gross margins now 50%+

Divestitures – PSX, ASI, KEO

40 acquisitions completed between 2001 - 2013

Portfolio Evolution

Product Identification Overview

Consumer packaged goods Pharmaceuticals Industrial products Retail

~$8B Market Size


~$1.5B 2012 Sales

45% Equipment 55% Consumables / Service

>20% 2012 Operating Margin

Geographic Mix (% of 2012 sales)

$1 billion+ deployed in PID adjacent market acquisitions over last 2 years

Packaging converters & printers Equipment OEMs

Customers

#1

#1

#1

Brand Industry Position

30% NA

30% EU

40% ROW

15 acquisitions since Videojet − $1.5B in capital deployed − 9 years of marking & coding growth / build out − 2 years of adjacent market expansion into packaging design/optimization

2004 2006 2008 2010 2002 2012

Comprint (VJ Brazil)

F. Armida (VJ Mexico)

Echter + Konig S.A. (VJ Argentina)

PID Platform Evolution

Broadening addressable market in strategic fashion; significant M&A runway

EWA BIS (VJ Poland)

Unique PID Footprint in Packaging Workflow

Cutting Creasing Folding

Design Pre-Press

Plate Making Printing Coding

Marking Brand Owner Retail

Esko / X-Rite expand PID footprint in attractive consumer packaging value chain

Esko / Pantone Gained influence at front of value chain

Esko / X-Rite / Pantone Expanded served customers to include designers, plate makers, printers / converters

Initial PID Focus Coding and marking

SW SW / HW SW / HW SW / HW HW SW SW / HW Offering

WebCenter Studio Store Visualizer

ArtiosCAD

Art Pro

Imaging Engine

Digital Flexo Suite

i-Cut WebCenter

Software

Product ID Strategy – Packaging

Vision

Customer Benefits

Strategy

• Integrated Packaging Solutions for design, production, and control that optimize customers’ packaging value chain

• Enable Consumer Brand Owners to: − Accelerate speed to market − Reduce cost − Control quality − Enable traceability / brand protection − Leverage packaging to drive demand

1. Create best-in-class solutions for individual sections of value-chain

2. Leverage PID platform synergies to address cross-value chain needs

3. Build, acquire, or license technologies to enable the creation of best-in-class packaging solutions

Strong businesses on their own…together creating more value for Brand Owner

• Brand protection / anti-counterfeiting

PID Platform - Expanding Solution Set and Driving Digitization of Workflows

Building a unique value proposition for consumer goods, pharma and retail

PID’s Current Focus

PID’s Expanding Capabilities

• Track-n-Trace across supply chain


Design Pre-Press



SW SW / HW HW SW SW / HW Offering

Packaging design

Pre-press solutions

Setting standards

Print Workflow solutions Inline

variable printing

Color management

Downstream color verification

• In-store demand generation

Leveraging SW to drive digitization and movement to greater automation of workflows

SW enabled finishing

SW / HW SW / HW

• Packaging verification

Leadership

Growth Lean DBS

Fundamentals

DBS Fundamentals

Voice of the Customer Value Stream Mapping

Standard Work Transactional Process Improvement

Kaizen Basics 5S

Problem Solving Process Daily Management & Visual

Management

Develop our Leaders, Teams and Associates

Integrated DBS

Regardless of function or level, DBS fundamentals are critically important

Increase & accelerate

organic growth

Improve QDC forever

Strong DBS Execution across PID Platform

Leadership Lean Growth

Danaher Reliability System Lean Software Development Kanban & Supply Chain optimization Footprint consolidation

Esko team intact while learning DBS X-Rite - 6 leadership roles filled from DHR Joint commercial leadership in selected HGM Policy Deployment

Videojet marketing model for growth DBS Product Development at Esko & X-Rite Sales Funnel Management HGM feet-on-the-street

DBS helped deliver HSD revenue growth and OMX >100 bps over past 2 years

Deploying DBS Growth Tools across PID Platform

Dream Develop Deliver

Expanding capability through packaging value chain Esko – automation software for pre-press functions X-Rite – Texture & Appearance

Lean Software Development − Esko / X-Rite − VJ network connectivity

PantoneLIVE New Product Development − Videojet embedded SW − X-Rite handheld

HGM product localization

Marketing – expanded reach & demand generation HGM – feet-on-the-street & channel strategies Sales force – capability and effectiveness via DBS

Driving share gains across Product ID platform

Product ID Financial Evolution

Mid-teens ROIC including 2012 X-Rite acquisition, 2002 - 2012

Revenue $300M OP $40M OP Margin 13%

2002

Revenue $850M OP $125M OP Margin 15%

Revenue ~$1.5B OP ~$330M OP Margin ~23%

2012

Revenue $300M OP $165M

Acquisitions Growth/ Improvement PID Platform today + + =

Product ID Platform Summary

$1.5B platform with high returns, margins and growth

DBS accelerating PID platform’s success through application of Lean, Leadership and Growth initiatives

PID platform offers unique value to Brand Owners and packaging work flow while continuing to expand capabilities

Growth, synergy potential and M&A expected to drive value creation

Packaging Workflow …begins with Pantone and Esko


Design Pre-Press



…continues with X-Rite and Videojet

Brand Owners and Designers use Pantone to set color standards and Esko to initiate design

SW SW / HW HW SW SW / HW Offering SW / HW SW / HW

Esko Carsten Knudsen, President

Esko

Packaging for 9 out of 10 major brands is produced by Esko customers

Esko Overview

Drive digitization of end-to-end packaging workflow

~$2B Market Size

Long Term Market Growth 4-6%

$300M



Key Customers Brand Owners, Package Designers Print Service Providers Packaging and Label converters

Growth Drivers

“Better, Faster, Cheaper, Greener” Brands taking charge of supply chain Transition to digital print Packaging converters must drive cost out of production process Changing consumer behavior in high growth markets

Strong growth opportunities in new segments (brand owners) and markets (HGM)

30% NA

40% EU

30% ROW

2012 Sales 41% Equipment |

59% Software / Service

Serving Entire Print, Package, Sign and Display Supply Chain

Structure Artwork Logistics

Color Management

Compliance

Production Planning

Finishing

Plate-making


Design Pre-Press



Integrate packaging production processes to provide value to the Brand Owner

SW SW SW / HW SW / HW HW SW SW

Our Customers

Packaging Converters

Brand Owners

Package Designers

Print Service Providers

+11,000 customers driving recurring revenue and add-on sales

Growth Drivers

Brand Owners - Designers

Print Service Providers

Packaging Converters

• Battle for shelf shout drives “faster, better, cheaper, greener” packaging.

• Consumer dynamics drive # SKUs, shortening run length.

• “The package is the product”: quality and consistency.

• Seek value opportunities in cross media publishing.

• Globalization drives workflow automation and web-based collaboration.

• Increasing price and compliance pressure.

• Shorter run lengths drive automation and integration.

• Digital Print close to breakthrough in major packaging segments.

Global packaging market expected to grow MSD

How We Win At Esko

• Enable Brand Owners to better control their supply chain and shorten their GTM process

• Software for automation, asset sharing and project management

• Front-end vendor in industrial Digital Print for packaging

• Develop scalable business model (Cloud and SaaS)

• Drive Zero-Defect production workflow for color and content

• Improve flexo print quality (Full HD Flexo)

• Automate the digital flexo plate process (The Plate Factory)

• Capitalize on market dynamics

• Drive supply chain improvements through DBS

• Increase throughput and automation of short-run finishing

• High-value front-end software

• Deep application knowledge

• Digital Printing drives need for digital cutting in folding carton, sign making and display markets

Software Market growth: HSD

Digital Flexo Market growth: LSD

Digital Cutting Market growth: MSD

HSD core revenue growth 2012 – 2013YTD

DBS Results to Date

Expansion in High Growth Markets

Scrum/agile development in Software

Daily Management

Lean Conversion of manufacturing

Kanban implementation

Plant consolidation

DBS is a change agent for growth and efficiency

Since Acquisition Core Revenue Growth HSD Gross Margin Expansion +200 bps Core OP Margin Expansion +90 bps Working Capital Turn Improvement 2.8X OTD Improvement 25% HGM headcount growth +30%

Summary

Market leader and innovator of choice for packaging industry Opportunities for further growth

Developed & High Growth Markets Strong installed base New high value products

Significant value unlocked by rigorous implementation of DBS Together with rest of PID platform, will solve ever evolving needs of the packaging supply chain

X-Rite / Pantone Ron Voigt, President

X-Rite / Pantone Overview

Global leader in art and science of color

$1B Market Size


~$250M



Key Customers Brand owners/designers Printers and converters Textile, plastics & industrial Retail photo, paint & cosmetics

Growth Drivers

Color importance Global workflows and extended supply chains Growth markets

“Color is nearly always a top 3 product attribute in customer buying decisions”

35% NA

35% EU

30% ROW


15% Software / Service

X-Rite | PANTONE Workflow: Print/Packaging | Textiles | Automotive | Paint

Solutions within Customer Workflow

Formulation & Measurement

Hardware, Software and Standards applied across workflow

Color Standards


Design Pre-Press



SW SW / HW SW / HW SW / HW HW SW SW / HW

Major product line refresh:

Spectra Light QC

RM200QC Ci4200 eXact

Delivering MSD revenue growth since acquisition

Driving Growth

Pantone licensing

~15% of 2012 revenue; growing HDD

Shared leadership in key geographies

Japan, Latin America, Eastern Europe and Turkey

25%+ increase in local commercial resources since acquisition

1. Innovation

2. HGM expansion

3. Leveraging PID global footprint

4. Leveraging the Pantone Brand

Prior state: No standard method to collect / process leads and manage revenue funnel

Implemented Kaizen, Value Stream Mapping and Daily Management

Current process: Funnel and Lead Management standard work in place

7X improvement in leads and ~$2M in incremental revenue YTD

DBS Impact Year 1 – Demand Generation and Funnel Management

Open Innovation – Total Appearance Capture

Long term research partnership with U of Bonn to capitalize on emerging opportunity for texture & appearance standards and modeling

Create a digital appearance eco system Allow customers to digitize and visualize using texture and appearance Produce measurement-based, accurate, physically correct simulation of real-world materials

Capitalize on mobile technology Take Pantone to the Digital World, leverage the Pantone brand

Extending current leadership in the business of color into the field of appearance

“PantoneLIVE is an excellent solution for simplifying how we access digital color palettes for design, proofing and print. When fully implemented, the productivity benefits will be significant – both internally for P&G and for our suppliers.”

- Phil Duncan, Global Design Officer

Brand Owners Designers Pre-press Ink

Manufacturers Printers & Converters

PantoneLIVE

ONLINE COLOR

DATABASE With Esko Suite 12 and Color Engine

Esko’s workflow solutions (WebCenter and Automation Engine) accelerate PantoneLIVE adoption

Significant commercial progress

Engaged multiple brands with pilot programs

Roll-out to regional & global converters

PantoneLIVE is foundational to support of Digital Workflows

PantoneLIVE – Color Integrity across the Supply Chain

DBS driving growth, improving quality / delivery and expanding margins in first year

MSD revenue growth

200+ bps of OP margin expansion

700+ bps OTD improvement

15% quality improvement

Opportunities to leverage PID platform capabilities

Digitization of global workflows

High Growth Market penetration

Market trends offer significant opportunities for further growth

Color growing in importance

Texture and appearance

Summary

Videojet Joakim Weidemanis, Group President, Marking & Coding

Videojet Overview

Good growth drivers and diverse, global customer base

Leader in in-line printing of variable information on packaging and products

$4B Market Size

~4% Long Term Market Growth

~$800M

>20% 2012 Operating Margin


Key Customers Consumer packaged goods Pharmaceuticals Industrial products

Growth Drivers

More data, more variability Food and Pharma supply integrity Demand for brand consistency / integrity High Growth Markets

30% NA

25% EU

45% ROW


55% Consumables / Service

Coding and marking Inline variable printing

Videojet’s Footprint in Consumer Packaging Workflow


Design Pre-Press



Coding & Marking present in thousands of manuf. and packaging operations

SW SW / HW SW / HW SW / HW HW SW SW / HW Offering

Brand protection Coding built into artwork

specifications

Videojet Value Proposition

Uptime Peace of Mind® Reliable solutions for low, unplanned downtime Largest global direct service team Quality products

Total Solution Provider

Equipment, supplies, software and service Code Assurance solutions to reduce errors Brand Protection and Traceability solutions

Global Partner with Application Expertise

Dedicated teams for Global Strategic Accounts and OEM Partners Integrated Solutions team

Videojet core revenues grew HSD over last 2 years, while OMX +200 bps

Continued Outperformance

Average top line outperformance of +300 bps versus peers, 2008 – Q1 2013

200 bps

600 bps

200 bps

400 bps

100 bps

200 bps

2008 2009 2010 2011 2012 Q1 2013

Core Revenue Growth – Videojet Outperformance vs. Peers

Peers: Dover (Markem-Imaje), Domino

Extending Beyond Uptime Peace of Mind

Solutions and services designed to aid customers’ workflow

Uptime Peace of Mind Code Assurance

Productivity Tools Simple Usability

How We Continue to Win at Videojet

Turn marketing into a growth driver Win in high growth markets Accelerate new product development

Marketing as a Growth Driver

… leveraging Videojet scale to deliver more to local teams …

Multiple programs deployed to drive lead generation…

... with vertical-specific approach in 15 languages

Digital

Tele Lead Gen

Service

Expanding organization and process to roll out strong lead gen to all countries

Global Marketing Local Marketing

Applying DBS to Marketing

Using DBS to build Marketing capability

59

1620

24

Jan Feb Mar Apr May

2013 Global and Local Marketing Kaizens (cumulative events)

Standard Visual Management deployed in all countries

VJ China

Prioritizing growth-focused improvement opportunities

Delivering the Growth

27% YTD increase in marketing generated opportunities

June YTD 2012

Digital Tele Lead Gen

All other lead gen.

June YTD 2013

June YTD, Marketing Generated Equipment Bookings

High Growth Markets, 2002-2012 Growth

Over last decade, HGMs increased from 13% to 40% of total revenue

HGM revenue contributed >50% of PID revenue growth since 2002 Core revenue growth in HGM > 10% over the same period

Last 5 years largely driven by organic investment and distributor acquisitions

2009: Poland distribution 2010: Mexico distribution 2012: Argentina distribution

Initial period fueled by acquisition 2003: Willett 2005: Linx 2006: Brazil distribution

2002

Developed

'02-'06

Developed

BRICNon-BRIC

'06-'12

DevelopedBRIC

Non-BRIC

2012

Developed

BRIC

Non-BRIC

Year Global Adapted Products Localized Products

2007 6210 TTO for lower speeds

2008 CIJ products adapted for China

2009 CIJ for low usage segment

CIJ for China pipe market

Local box coder

2010 • 2 more CIJ for China • Intermittent TTO

Basic Laser for emerging markets

2011 Mid-range TTO Traceability solutions for China

2012 Basic Laser Basic CIJ for China

2013 Laser for low and mid range applications

Mid range CIJ for China

High Growth Market Product Development

China localized products generating ~25% of China equipment revenue

Moving from globally designed, locally produced to locally designed, locally produced

Building Capability in High Growth Markets

~35% increase in Feet-on-the-Street in HGMs since 2009

Create

Assess

Replicating DBS Sales Force Management in HGMs

Continued investment in Feet-on- the-Street in HGMs

Deploying Sales Tools to Increase Win Rate

Train

Test

2013 Performance to KPI Target

Sales Engineer CIJ TIJ CO2 Laser TTO LCM % to Sales

Plan

Region 1 100%U101 53% 0% 157% 48% 41% 63%U105 162% 0% 0% 762% 834% 298%U104 61% 0% 238% 199% 182% 117%U106 147% 196% 41% 161% 53% 117%U108 68% 0% 43% 67% 17% 53%U109 147% 0% 75% 25% 45% 103%U107 98% 0% 147% 112% 67% 97%U111 204% 0% 47% 480% 170% 193%

117% 26% 90% 236% 179% 130%Region 2

U401 83% 0% 95% 34% 52% 72%U402 46% 112% 97% 156% 99% 74%U403 86% 0% 115% 449% 88% 120%U404 207% 58% 11% 113% 113% 149%U405 37% 180% 0% 23% 75% 41%U406 124% 0% 26% 86% 100% 98%U414 104% 113% 239% 286% 46% 130%U423 97% 0% 82% 92% 57% 84%

101% 54% 88% 157% 78% 98%Region 3

U201 101% 406% 350% 60% 3% 100%U202 145% 0% 141% 153% 51% 124%U203 98% 0% 31% 268% -10% 95%U204 121% 0% 76% 328% 128% 130%U207 148% 0% 211% 133% 67% 137%U208 87% 0% 355% 177% 29% 121%

117% 78% 151% 133% 46% 117%

Sell the Basket 2013 YTD

2009 2010 2011 2012

FOS Headcount

Investing to Accelerate Growth

Global technology teams Cross platform team Local-focus China resources Vertical specific projects Open innovation projects

New product introductions in 2013 expected to be 3X 2010

… and deploying R&D differently to speed development

Increasing R&D investment…

Cross-platform team • User interface • Industrial Comms • SW apps

Print technology focused teams

1

2

3

4

5 2009 2010 2011 2012 2013E

R&D spending

increase of ~40%

Next Gen CIJ 1650 Launched 2012

Innovation focused on improving customers’ operations

Next gen CIJ delivering 4 key advancements:

Uptime Advantage Code Assurance Productivity Tools Simple Usability

Innovation driven by Danaher Lean Principles

On-board Availability metrics and tools help customers improve OEE Proven means to help prevent coding mistakes, rework, and scrap

Deploying innovation across product portfolio

0

50

100

150

200

Legacy New

+41%

Launch of Ultra High Speed CIJ

Expect $8M in incremental sales in 2014E

0

50

100

150

200

Legacy New

+43%

New UHS prints tri-line codes at legacy dual-line speeds

meters/ min meters/ min

Summary

Excellent growth drivers and diverse, global customer base

Well positioned with broadest product portfolio and global reach

Utilizing DBS to accelerate growth

Leveraging marketing to drive sales growth

Increased investment in New Product Development

Continued investment in products, sales capacity, and sales productivity in High Growth Markets

Product ID Platform Summary

Growth, synergy potential and M&A expected to drive value creation

$1.5B platform with high returns, margins and growth

DBS accelerating PID platform’s success through application of Lean, Leadership and Growth initiatives

PID platform offers unique value to Brand Owners and packaging work flow while continuing to expand capabilities

investor and analyst event july 9, 2013...key customers brand owners/designers printers and...

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