Thermo Fisher Scientific : 39th Annual J.P. Morgan Healthcare Conference

39th Annual J.P. Morgan Healthcare Conference

Marc N. Casper

Chairman, President and Chief Executive Officer January 11, 2021

The world leader in serving science

1

Safe Harbor / Non-GAAP Measures

Various remarks that we may make in the following presentation about the company's future expectations, plans and prospects constitute forward- looking statements for purposes of the safe harbor provisions under The Private Securities Litigation Reform Act of 1995, including statements about future revenue and impacts of the COVID-19 pandemic. Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in our most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q, under the caption "Risk Factors," which is on file with the Securities and Exchange Commission and available in the "Investors" section of our website under the heading "SEC Filings." Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the duration and severity of the COVID-19 pandemic; the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions may not materialize as expected. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if estimates change, therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today.

During this presentation, we will be referring to certain financial measures not prepared in accordance with generally accepted accounting principles, or GAAP, including adjusted EPS and free cash flow. The non-GAAP financial measures of Thermo Fisher's results of operations and cash flows included in this presentation are not meant to be considered superior to or a substitute for Thermo Fisher's results of operations prepared in accordance with GAAP. Definitions of these non-GAAP financial measures and, for historical periods, a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measures is available under the heading "GAAP/Non-GAAP Reconciliation & Financial Package" in the "Investors" section of our website, www.thermofisher.com.

2

Key takeaways

• As in years past, we executed our growth strategy in 2020 strengthening our position as the world leader in serving science
• We played an extraordinary role in supporting the global response to the pandemic:
• • Supporting COVID-19 testing around the world
  • Enabling the development and production of therapies and vaccines
• Resulted in our strongest year of performance in our history:
• • Delivered approximately 50% organic revenue growth in Q4'201
  • Resulting in approximately 25% organic revenue growth for full year 20201
  • Took actions to accelerate our long-term growth outlook from the 5% - 7% range we entered the year with
• Exceptionally well positioned entering 2021:
• • Base business performance strengthening, and
  • Significant COVID-19 response role and revenue generation

3 1. [As provided on January 11, 2020]

Thermo Fisher is the world leader in serving science

	$30B		80,000			$1B
	revenue		employees			R&D investment
Industry-leading scale	Unmatched depth of capabilities
• Unparalleled commercial reach	• Leading innovative technologies	• Comprehensive pharma
• Unique customer access	• Deep applications expertise	services offering
• Expanding global footprint	• Premier productivity partner

Powered by our Practical Process Improvement (PPI) Business System

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Our Mission is our purpose

Gold-standard PCR testing		Electron microscopy for advanced		Vanquish UHPLC QA / QC lab
	materials analysis
Delivering diagnostic tests,		Supporting innovative
vaccine/therapy development		research and development		Ensuring the quality and
and production to fight		of cleaner, more efficient		safety of medicines
COVID-19 globally		power sources

We enable our customers to make the world healthier, cleaner and safer

5

Attractive revenue profile

Diverse Customer Base	Strong Recurring
in Attractive End Markets	Revenue Mix

Diagnostics		Services
& Healthcare	Pharma	23%
26%	& Biotech
	41%
Industrial		Instruments
& Applied		22%
15% Academic &		Consumables
		55%
Government

18%

Revenue: $28.5B

• NOTE: Amounts based on LTM through Q3 2020. Percentages are before intercompany eliminations.

Industry - Leading Scale in

Emerging Markets

ROW

3%

Asia-Pacific

19%

North

America

52%

Europe

26%

Consistently delivering exceptional financial performance

Revenue ($B)

11% CAGR

	$28.5
$10.4
2010	Q3'20 LTM

Adjusted EPS

17% CAGR

	$16.01
$3.43
2010	Q3'20 LTM

Free Cash Flow ($B)

17% CAGR

	$5.7
$1.2
2010	Q3'20 LTM

2020 Goals (as communicated at JPM Conference on January 13, 2020)

• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to reduce cost, enhance productivity, and quality
  • Deliver the benefits of recently completed acquisitions
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the business
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

8

2020 Goals

• Enable the global pandemic response
• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to reduce cost, enhance productivity, and quality
  • Deliver the benefits of recently completed acquisitions
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the business
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

9

Our approach to responding to COVID-19

• Set clear guiding
  principles

• Leverage scale and depth of capabilities

• Drive operational
  agility

• Create an even brighter future

Our experienced team established guiding principles to appropriately manage through the pandemic and quickly mobilize our COVID-19 response

Rapidly developed and deployed relevant products and services to comprehensively respond to COVID-19

Anticipated meaningful headwinds and executed thoughtful mitigation plans while rapidly scaling up our ability to meet COVID-19 demand

Intensely focused on strengthening our competitive position

10

Leveraging scale and depth of capabilities to address COVID-19

Global Testing and Sample Collection

20M+

weekly

COVID-19 test kit production capacity

Therapies and Vaccines

Research	Development
	and Production

250+

COVID-19

related

projects1

Essential

Personal Protection

Equipment (PPE)

7K+

Customers

served

11 Proprietary & Confidential

1. COVID-related projects supporting the development and production of therapies and vaccines

Executed comprehensive response to COVID-19

Addressed Customer

Bottlenecks

• Acute shortage of global viral transport media (VTM) used to transport samples to laboratories for processing
• Won scale contracts in U.S. and U.K.
• Built two dedicated facilities to help solve global shortages

Impact	Permanently strengthened
our competitive position

COVID-19 qPCR Testing

• Industry-leadinginstalled base of qPCR instruments
• Rapidly developed qPCR test (TaqPath COVID-19 Combo Kit)
• Exponentially increased testing capacity to >20M tests/week
• Took a leading role in sample preparation
• Broadened testing solutions to enable labs to increase testing capacity

Enhanced our competitive position in molecular

Impact diagnostics and increased our installed base

Therapies & Vaccines

• Partnering with pharma and biotech to accelerate therapy and vaccine programs
• Broad portfolio of best-in-class products and CDMO services to support all therapy and vaccine types
• Enabling bioproduction with leading cell culture media, biosciences reagents, purification products, and single use technologies
• Entered into long-term partnership with BARDA and in Singapore

Expect $1B+ impact

Impact in revenue and will benefit from repurposing

our expanded capacity

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Thermo Fisher's COVID-19 response summary

• Speed at scale: Quickly mobilized to enable the global societal response to the pandemic
• Significantly deepened our relationships with customers and governments around the world
• Generated >$6B in COVID-19 response revenue in 2020

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2020 Goals

• Enable the global pandemic response
• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to reduce cost, enhance productivity, and quality
  • Deliver the benefits of recently completed acquisitions
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the business
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

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High-impact innovation strategy: Resulting in outstanding product launches

COVID-19 qPCR Test		Mass Spectrometry

Cell & Gene Therapy

Applied Biosystems TaqPath COVID-19 Combo Kit

Multiplex real-time PCR diagnostic kit to enable accurate COVID-19 diagnosis

Orbitrap Exploris 240 and 120

Market leading performance, versatility and ease-of-use to enable customer success

Gibco CTS Rotea

Flexible closed cell-processing system, enabling superior process flexibility

Electron Microscopy

Glacios Cryo-TEM	Selectris Imaging Filter
Sample screening and high-resolution data	World-record resolution enabling the viewing
acquisition made easy through automation	of precise molecular detail

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Next-Generation Sequencing

Ion Torrent Genexus System

First turnkey clinical NGS system to deliver results in a single day

Unique customer value proposition

End-to-end offering for pharma and biotech

Leading Life Sciences offering		Leading CDMO services
(spanning R&D to bioproduction)

Strong track record of growth

in Pharma and Biotech

	$11.6B
$2.6B
2010	Q3 2020 LTM

We help our customers accelerate innovation and enhance productivity -

underpinned by quality

16 1. Average annual organic growth

Unique customer value proposition in action: Pharma & biotech

Looking for an edge in vaccines, Thermo Fisher plots major expansions across global manufacturing sites in its portfolio

17

Scale in high-growth and emerging markets

Our key differentiators

• Unique depth of product and service offerings
• Industry-leadingscale
• Leading commercial infrastructure
• Expanding e-commerce platform
• World-classsupply-chain capabilities
• Localized R&D and manufacturing

Driving material impact

for the company

• $5.6B revenue
• Strength across the major geographies

	20%
15%
2010	Q3 2020 LTM

High-growth and emerging region

revenue as % of total revenue

2020 highlights

Thermo Fisher goes in on a biologics facility in China

Thermo Fisher to expand sterile filling capacity with $130M Singapore facility

Industry-leading scale and depth create a differentiated experience for our customers

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2020 Goals

• Enable the global pandemic response
• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to reduce cost, enhance productivity, and quality
  • Deliver the benefits of recently completed acquisitions
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the business
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

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PPI Business system

Drives culture of continuous improvement

Impact of PPI:

• Accelerates organic growth
• Expands margins
• Enhances cash flow

Quality

Consistently deliver world-class products and services

Productivity

Improve operating and process efficiency to strengthen our competitive position

Customer Allegiance

Exceed expectations to maximize customer success

PPI Enabled our comprehensive COVID-19 response

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2020 Goals

• Enable the global pandemic response
• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to reduce cost, enhance productivity, and quality
  • Deliver the benefits of recently completed acquisitions
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the business
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

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Deploying capital to create shareholder value

2020 Capital Deployment

M&A:

• CSL ‒ New state of the art biologics drug substance capability
• Innoforce Joint Venture - Establish biologics and steriles drug

manufacturing facility in Hangzhou, China

• Phitonex - Spectral dye platform that expands multiplexing capabilities in flow cytometry and imaging for protein and cell analysis research

CapEx:

• Increased net CapEx from $0.9B to ~$1.5B

• Driving attractive returns and accelerating long-term growth

Return of Capital:

• Share repurchases: $1.5B

• Dividends: $350M (16% YoY increase)

Balance Sheet

Debt:

• Lowered net debt by $1.8B through Q3'2020

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Investing in industry-leading Biosciences, BioProduction & Pharma Services capabilities

Biosciences

• Revenue: $4B
• Strong leadership position in life science reagents and consumables
• Investing in global capacity to increase the manufacturing of enzymes and nucleotides used in vaccines

BioProduction

• Revenue: $2B
• Strong leadership position in cell culture media and single-use containers
• Investing to capitalize on the robust growth of biologics and vaccines with rapidly growing purification business

Pharma Services

• Revenue: $4.5B
• World's leading Contract Development and Manufacturing Organization (CDMO) with comprehensive end-to-end solution
• Three-prongedinvestment strategy:
• • Internal capacity expansions
  • Acquiring world-class facilities from pharma companies
  • Adding new capabilities through acquisitions

Total Company CapEx Investments

~$1,500M

$890M

2019

2020E

Supporting our customer needs in the short- and long-term

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2020 Goals (as communicated at JPM Conference on January 13, 2020)

• Enabled the global pandemic response
• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to reduce cost, enhance productivity, and quality
  • Deliver the benefits of recently completed acquisitions
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

24

We are committed to doing business the right way

It starts with our Mission:

To enable our

customers to make the world healthier, cleaner and safer

• Our products, technologies and services benefit the environment and society globally
• We take deliberate actions to address sustainability issues today in order to strengthen our business for tomorrow's customers, colleagues and communities
• Our approach focuses on areas that are aligned to our strategy and material to our stakeholders

Operations		Colleagues		Communities		Environment
Leveraging our capabilities to support		Providing resources and embracing		Making a difference worldwide with		Innovating to serve our customers
our customers, while conducting our		unique perspectives to reach our full		an emphasis on inspiring students		while actively minimizing our own
business and relationships with integrity		potential as one global team		through STEM education		global footprint

Strong focus on environmental, social, and governance (ESG)

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We are committed to doing business the right way: 2020 ESG spotlight

30%	Greenhouse gas
emissions by 2030

Leveraging innovation and our PPI Business System to increase efficiency and reduce our carbon footprint

Giving back to the communities

where we live and work

•	Launched $30M Foundation for Science to expand our
	STEM education programs, especially in underserved
	communities
•	Enhanced programs that empower colleagues to support

Process optimization

Built

Environment

Efficiency

Smart energy sourcing

Redesigning operations to lower environmental impact

Investing in equipment to make our sites more efficient

Expanding use of solar energy

social justice issues

• Extended collaboration with

Historically Black Colleges and

Universities, creating new

educational opportunities,

contributing $25M in COVID-19

tests and increasing our

commitment to hiring students

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2020 Goals

• Enabled the global pandemic response
• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to reduce cost, enhance productivity, and quality
  • Deliver the benefits of recently completed acquisitions
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

Extraordinary performance in the most challenging of times

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2021 Goals: Build on our outstanding momentum

• Significantly Enabling the Societal Response to the Pandemic
• • Industry leader in COVID-19 testing
  • Leading role in therapy and vaccine production
  • Create sustainable value from investments initiated in 2020
• Revenue - Continue Share Gain Momentum
• • Another year of high-impact new product launches
  • Leverage our unique customer value proposition by cross selling our total portfolio
  • Continue to leverage our commercial reach in high growth and emerging markets
• Margins/Below the Line
• • Leverage PPI business system to enable operational excellence and speed at scale
• Capital Deployment
• • Maximize the use of our significant cash flow and leverage capacity to continue to fuel the growth trajectory of the business
  • Continue shareholder friendly capital deployment through strategic M&A, share buybacks, and dividends
• Environmental, Social and Governance (ESG)
• • Continue to execute on our ESG priorities

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