DANAHER BUSINESS SYSTEM

1 DANAHER BUSINESS SYSTEMTom Joyce, President & CEODan Comas, EVP & CFOMAY 20182 Forward Looking StatementsStatementsinthispresentationth atarenotstrictlyhistorical,includinganys tatementsregardingeventsordevelopmentsth atweanticipatewillormayoccurinthefuturea re"forward-looking" , ,amongotherthingsdeteriorationoforinstab ilityintheeconomy,themarketsweserveandth efinancialmarkets,contractionsorgrowthra tesandcyclicalityofmarketsweserve,compet ition,ourabilitytodevelopandsuccessfully marketnewproductsandtechnologiesandexpan dintonewmarkets,thepotentialforimproperc onductbyouremployees,agentsorbusinesspar tners,ourcompliancewithapplicablelawsand regulations(includingregulationsrelating tomedicaldevicesandthehealthcareindustry )

2 ,ourabilitytoeffectivelyaddresscostreduc tionsandotherchangesinthehealthcareindus try,ourabilitytosuccessfullyidentifyandc onsummateappropriateacquisitionsandstrat egicinvestmentsandsuccessfullycompletedi vestituresandotherdispositions,ourabilit ytointegratethebusinessesweacquireandach ievetheanticipatedbenefitsofsuchacquisit ions,contingentliabilitiesrelatingtoacqu isitions,investmentsanddivestitures(incl udingtax-relatedandothercontingentliabil itiesrelatingtothedistributionsofeachofF ortiveCorporationandourcommunicationsbus iness)

3 ,securitybreachesorotherdisruptionsofour informationtechnologysystemsorviolations ofdataprivacylaws,theimpactofourrestruct uringactivitiesonourabilitytogrow,risksr elatingtopotentialimpairmentofgoodwillan dotherintangibleassets,currencyexchanger ates,taxauditsandchangesinourtaxrateandi ncometaxliabilities,changesintaxlawsappl icabletomultinationalcompanies,litigatio nandothercontingentliabilitiesincludingi ntellectualpropertyandenvironmental,heal thandsafetymatters,therightsoftheUnitedS tatesgovernmenttouse,discloseandlicensec ertainintellectualpropertywelicenseifwef ailtocommercializeit,risksrelatingtoprod uct,serviceorsoftwaredefects,productliab ilityandrecalls,risksrelatingtoproductma nufacturing,theimpactofourdebtobligation sonouroperationsandliquidity,ourrelation shipswithandtheperformanceofourchannelpa rtners,uncertaintiesrelatingtocollaborat ionarrangementswiththirdparties,commodit ycostsandsurcharges,ourabilitytoadjustpu rchasesandmanufacturingcapacitytoreflect marketconditions,relianceonsolesourcesof supply.

4 Theimpactofderegulationondemandforourpro ductsandservices,labormatters,internatio naleconomic,political,legal,compliancean dbusinessfactors(includingtheimpactofthe UK sdecisiontoleavetheEUandchangesinUSpolic ystemmingfromthecurrentadministration,su chaschangesinUStradepoliciesandthereacti onofothercountriesthereto),disruptionsre latingtoman-madeandnaturaldisasters, , ,theCompanydoesnotassumeanyobligationtou pdateorreviseanyforward-lookingstatement ,whetherasaresultofnewinformation, (1)tocompany-specificfinancialmetricsrel ateonlytothecontinuingoperationsofDanahe r sbusiness,unlessotherwisenoted;(2)to growth orotherperiod-to-periodchangesrefertoyea r-over-yearcomparisonsunlessotherwiseind icated;(3)toOperatingProfitbelowthesegme ntlevelexcludeamortization.

5 And(4)to today referstotheCompany OVERVIEW: EVOLUTION FROM LEAN TO BALANCED APPROACH INCLUDING GROWTH & LEADERSHIPDBS is our sustainable competitive advantageImpact of DBS on GrowthWhat You ll Learn About the DANAHER BUSINESS SYSTEM (DBS)DBS in action at recent acquisitions: from process to results3 Building outstanding leaders through DBS DBS is Our Competitive Advantage4198419911999200120032005200720 092011201320152017 EEvolution of the DANAHER BUSINESS SYSTEM (DBS)As portfolio evolved, so has DBS from Lean to a balanced approachOUR SHARED PURPOSEHELPING REALIZE LIFE S POTENTIALL eadershipLeanGrowthLeadershipLeanGrowthL eadershipLeanGrowthLeadershipLeanGrowthT ODAYMid-1980sLEAN FOCUSEDADDED GROWTH20012016 ADDED LEADERSHIP2009 LAUNCHED SHARED PURPOSE5 OMX is Operating Margin Expansion.

6 WC is Working CapitalSHAREHOLDERCORE REVENUE GROWTHOMXCASH FLOW / WC TURNSROICCUSTOMERQUALITY (EXTERNAL PPM)ON-TIME DELIVERY (OTD)ASSOCIATEINTERNAL FILL RATERETENTION8 CORE VALUE DRIVERSCore Value Drivers (CVDs) are How We Quantitatively Measure Success All operating reviews begin with discussion of CVDsLeadershipLeanGrowth6 Strategic Plan/ 3-5 Year Break-through ObjectivesDevelop Annual BreakthroughObjectivesDetermine Improvement PrioritiesID Measures, Metrics and Key ResourcesDeploy Improvement Priorities with DBSKeep Score Monthly & AnnuallyProblem Solving ProcessWhatHow MuchWhoBy WhenHowWhat is the Annual Process to Drive Performance?

7 Converting our strategy into execution through Policy Deployment78 DBS Fundamentals are the FoundationExpand capabilities, drive consistent execution and sustain outstanding resultsDBS FUNDAMENTALSPROBLEM SOLVING PROCESSVOICE OF THE CUSTOMERSTANDARD WORKVALUE STREAM MAPPINGTRANSACTIONAL PROCESS IMPROVEMENTVISUAL & DAILY MANAGEMENTKAIZEN5 SLeadershipLeanGrowth Common sense, vigorously applied What Differentiates DBS9 DBS is diversely applicable and always relevant at any BUSINESS , in any end-marketIt is a mindset and it is our culture DBS is who we are, and how we do what we doDBS is constantly evolving: in the spirit of continuous improvement, we are always DBSing DBSDBS overview: evolution from Lean to balanced approach including Growth & LeadershipDBS is our sustainable competitive advantageIMPACT OF DBS ON GROWTHWhat You ll Learn About DBSDBS in action at recent acquisitions.

8 From process to results10 Building outstanding leaders through DBS 11 DBS Growth ToolsDBS Growth comprised of innovation & commercial toolsStrategic ProductEnvelopeProduct Planning GroupCustomerSegmentationDanaher InnovationProcess Accelerated Product DevelopmentSpeed Design TOOLSEXAMPLES:EXAMPLES:TransformativeMar ketingValue Selling Lead NurturingFunnel ManagementStrategic NegotiationsSales Force TOOLS12 DBS Innovation ToolsReplicable process for innovation provides competitive advantageStrategic ProductEnvelopeProblem toPortfolio(P2P)

9 Product Planning GroupNPD Project ManagementLaunchExcellenceDefine the attractive domain for innovationDefine a winning roadmap for attractive segmentsCoordinate execution & resources across multiple projectsDrive cross-functional development of each new productGenerate & fulfill demand for the new productDOMAINROADMAPEXECUTION & RESOURCESCROSS-FUNCTIONAL DEMANDFROM MARKET MARKET SHAREL eadershipLeanGrowth13 DBS Innovation in Action: Speed Design Review at HachBASICS OF SPEED DESIGN REVIEW (SDR) Gather VOC.

10 Go to Gemba Obeyaroom with cross-functional teams together Simultaneous product & process optimization Rapid prototyping & evaluationSDR IN ACTION: HACH CM130 CHLORINE MONITORING SYSTEM FOR DIALYSISRESULTSNEW ADJACENT ADDRESSABLE MARKET+$50M1 STFDACLEAREDONLINE CHLORINE ANALYZER FOR DIALYSISC ustomer purchased Hach drinking water product to try in a dialysis capacityVOCGEMBASPEED15 product design sprints Dialysis clinics are required to test water every 4 hours14 DBS Commercial ToolsIntegrated marketing & sales tools to drive commercial execution.