Generation Sequencing • Single-Use Bioproduction • Technologies • Cell
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-generation sequencing • single-use bioproduction • technologies • cell culture media • rapid molecular products • liquid anic mass spectrometry • materials and minerals instruments • portable field safety instruments • environmental instrumen of-abuse testing • therapeutic drug monitoring • biomarker testing • immunodiagnostics • allergy, asthma and autoimmun ratory plastics • laboratory chemicals • research and safety market channel • drug substance services • drug product ser encing • microarray technology • clinical next-generation sequencing • single-use bioproduction • technologies • cell cultu ysis • life sciences mass spectrometry • inorganic mass spectrometry • materials and minerals instruments • portable fiel ental analysis • clinical diagnostics • drugs-of-abuse testing • therapeutic drug monitoring • biomarker testing • immunodia uipment • water analysis instruments • laboratory plastics • laboratory chemicals • research and safety market channel • d CR technology • capillary electrophoresis sequencing • microarray technology • clinical next-generation sequencing • sing gas chromatography • elemental analysis • life sciences mass spectrometry • inorganic mass spectrometry • materials an croscopy • molecular spectroscopy • elemental analysis • clinical diagnostics • Annual Report 2019 • therapeutic drug m ealthcare market channel • laboratory equipment • water analysis instruments • laboratory plastics • laboratory chemicals The world leader in serving science nce reagents • real-time PCR technology • capillary electrophoresis sequencing • microarray technology • clinical next-ge atography • ion chromatography • gas chromatography • elemental analysis • life sciences mass spectrometry • inorganic s instruments • cryo-electron microscopy • molecular spectroscopy • elemental analysis • clinical diagnostics • drugs-of-a ology • transplant diagnostics • healthcare market channel • laboratory equipment • water analysis instruments • laborato trials services • viral vector services • bioscience reagents • real-time PCR technology • capillary electrophoresis sequenc nce reagents • microbiology • Our Mission is to enable our customers to make the world • elemental analysis • life sc onmental instruments • process instruments • healthier, cleaner and safer. • process instruments • elemental analysis • and autoimmunity testing • microbiology • transplant diagnostics • healthcare market channel • laboratory equipment • w s • drug product services • clinical trials services • viral vector services • bioscience reagents • real-time PCR technology ogies • cell culture media • rapid molecular products • liquid chromatography • ion chromatography • gas chromatograph ents • portable field safety instruments • environmental instruments • process instruments • cryo-electron microscopy • m ker testing • immunodiagnostics • allergy, asthma and autoimmunity testing • microbiology • transplant diagnostics • heal Complementary 21% 25% Segments Analytical Instruments Life Sciences Solutions $25.5B Revenue 15% 39% Specialty Diagnostics Laboratory Products & Services Marc N. Casper nce reagents • real-time PCR technology • capillary electrophoresis sequencing • microarray technology • clinical next-ge Chairman, President and CEO atography • ion chromatography • gas chromatography • elemental analysis • life sciences mass spectrometry • inorganic s instruments • cryo-electron microscopy • molecular spectroscopy • elemental analysis • clinical diagnostics • drugs-of-a ology • transplant diagnostics • healthcare market channel • laboratory equipment • water analysis instruments • laborato Dear Shareholder, trials services • viral vector services • bioscience reagents • real-time PCR technology • capillary electrophoresis sequenc I’m very pleased to report that we closed out the decade We also ended the year with strong cash flow and a healthy nce reagents • microbiology • Our Mission is to enable our customers to make the world • elemental analysis • life sc by delivering another strong year in 2019. We measure our balance sheet, generating $4.1 billion of free cash flow in onmental instruments • process instruments • healthier, cleaner and safer. • process instruments • elemental analysis • success by how well we serve the needs of our customers, 2019. At the same time, we returned significant capital to by being a great place to work for our colleagues, and our shareholders through $1.5 billion of stock buybacks and and autoimmunity testing • microbiology • transplant diagnostics • healthcare market channel • laboratory equipment • w by consistently delivering strong financial results for our $300 million in dividends, which was a 12 percent increase s • drug product services • clinical trials services • viral vector services • bioscience reagents • real-time PCR technology shareholders. I can say with pride that we achieved what we in our dividend year over year. We deployed $1.8 billion on ogies • cell culture media • rapid molecular products • liquid chromatography • ion chromatography • gas chromatograph set out to do in each of these aspects of our performance, strategic acquisitions in 2019, primarily to expand our pharma ents • portable field safety instruments • environmental instruments • process instruments • cryo-electron microscopy • m and that positions us exceptionally well to capture the great services. In early March 2020, we announced our intent ker testing • immunodiagnostics • allergy, asthma and autoimmunity testing • microbiology • transplant diagnostics • heal opportunities we see ahead for Thermo Fisher Scientific. to acquire QIAGEN, a leader in molecular diagnostics and sample preparation technologies, for $11.5 billion. Adding We are a company that is very deliberate about what we want these capabilities will significantly strengthen our unique value to achieve, how and why. Our Vision for 2030 outlines what we proposition for clinical and life sciences customers, and we aspire to, and every successful year takes us closer to those look forward to completing this transaction in the first half goals. How we do it lies in the discipline we have in running of 2021. our company. At the core is our PPI Business System, which empowers our more than 75,000 colleagues to continuously I hit my 10-year anniversary as CEO of Thermo Fisher in 2019, improve the way we work. Perhaps most important is why we and while it’s incredibly fulfilling to recall everything our team come to work each day – and the answer lies in our Mission: has accomplished during that time, it’s even more exciting to to enable our customers to make the world healthier, cleaner look ahead. I don’t think I’ve ever been as energized about our and safer. This is our purpose as a company, and it’s a future as I am right now. constant reminder to our teams that we play an important role We have created a culture where our customers come first. By in making the world a better place. successfully executing our growth strategy year after year, we continue to strengthen our company to be the partner they rely Complementary 21% 25% Outstanding Results on to help them achieve their goals. I’ll highlight some of our Segments Analytical Instruments Life Sciences Solutions We are a company that consistently delivers strong financial key achievements in 2019 according to the three pillars of our performance, and this gives us the ability to invest for growth strategy: $25.5B and set ourselves up for an even brighter future. In 2019, • Continuously developing high-impact, innovative products Revenue we grew revenue by 5 percent to top the $25 billion mark, • Leveraging scale in high-growth and emerging markets, and at $25.54 billion. We also achieved another excellent year • Delivering a unique value proposition to our customers. 15% 39% in terms of the earnings we generated. Our GAAP diluted Specialty Diagnostics Laboratory Products earnings per share (EPS) increased 27 percent to $9.17, and & Services adjusted EPS* grew 11 percent to $12.35. * Adjusted EPS, adjusted operating margin, adjusted operating income and free cash flow are non-GAAP financial measures that exclud e certain items. For a reconciliation of these non-GAAP financial measures to comparable GAAP measures, see the accompanying consolidated statement of income on pages 6 and 7 of this annual report. Annual Report 2019 thermofisher.com 1 Continuous Innovation bring NGS to local hospitals, so patients can get oncology test results in days compared to weeks. Our growth strategy starts with our commitment to continuous innovation. We invested $1 billion on R&D in 2019 and We also enhanced our specialty diagnostics portfolio, from targeted that investment where we believe our customers expanding our menu of allergy and autoimmunity tests to will benefit the most. As the innovation leader in our industry, developing new tests that help clinicians prevent the risk of we continued to develop products that set new standards organ rejection in transplant patients. for speed, accuracy and ease of use to help our customers advance their important work. These are just a few of many examples of how we use our targeted R&D investment to make a real difference for our For example, our life sciences customers need powerful customers. new tools that allow them to analyze proteins in our blood to better understand how they’ll react to potential new drug Leveraging Scale treatments. They rely on our leading Thermo Scientific Orbitrap mass spectrometry franchise, which we strengthened The second pillar of our strategy is