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The World Turns to Us The world turns to us 2009 Annual Report 75 years and still advancing Company Profi le Beckman Coulter develops, manufactures and markets products that simplify, automate and innovate complex biomedical testing. Our diagnostic systems are found in hospitals and other critical care settings around the world and produce information used by physicians to diagnose disease, make treatment decisions and monitor patients. Scientists use our life science research instruments to study complex biological problems including causes of disease and potential new therapies or drugs. Hospital laboratories are our core clinical diagnostic customers. Our life science customers include pharmaceutical and biotechnology companies, medical schools and research institutions. Beckman Coulter has an installed base of more than 200,000 clinical and research systems operating in laboratories around the world. About 81% of Beckman Coulter’s $3.3 billion annual revenue comes from recurring sources, such as consumable supplies (including reagent test kits), service and lease payments. Beckman Coulter 2009 Annual Report P1 For 75 years, the world has turned to us to help fi nd answers to the mysteries of medical science. We’re proud to say we’ve solved many of them. Today, with a focus on recurring revenue growth, operating excellence and quality, we are delivering steady results to shareholders even in these uncertain times. Our unwavering dedication to improving patient health and reducing the cost of care defi nes who we are. Our track record of creating the industry’s most productive products and our broad and growing capabilities in the core laboratory clearly position us as a leader in biomedical testing. We serve the $41 billion Clinical Diagnostics market by creating and delivering value for our loyal customers around the world who count on us minute-by-minute to provide billions of critical test results needed to manage patient care. Our life science customers look to us to help them simplify their most complex research processes. For 75 years, we have worked together with our employees, laboratory scientists, medical technicians and physicians to make history. In the future, we will continue to lead as we do well for our shareholders and do good for others. P2 Beckman Coulter 2009 Annual Report Making Science Routine Established in a garage in Pasadena, California, In 1978, one of the fi rst steps in “Making Science Beckman Instruments was incorporated in 1935. Routine” was the introduction of ASTRA (Automated Stat Routine Analyzer), which combined a number of routine chemistry tests into one consolidated system for the hospital laboratory. Beckman’s commitment to excellence unit in China. Operations in the 1980’s dates back to its origin in 1935, and 1990’s focused on developing when Arnold Beckman invented the laboratory systems for biological first commercial pH meter. Within 25 analysis and transforming technology years, the pH meter found thousands into solutions for clinical labs. of applications in science, industry and medicine. Through the years the company has continued as an invaluable ally to A string of acquisitions in the 1950’s researchers, physicians and patients and 1960’s complemented and around the world. We’re better together. expanded the business. The 1970’s saw tremendous expansion in both products and facilities, with new sites in Europe and the opening of a sales Beckman Coulter 2009 Annual Report P3 12345 A B C D E Images from left to right A1 1935 Dr. Arnold O. Beckman, founder of Beckman Instruments, invented the pH meter to measure acidity in lemons. A3 1940 In the early years, Beckman was focused on electronic technologies, introducing the Helipot, a fi ne tuning potentiometer. A4 1941 The DU Spectrophotometer was the first ready-to-use instrument for analyzing chemicals present in a sample. B3 1953 James Watson and Francis Crick discovered the DNA molecular structure, thereby cracking the “secret of life”. It was one of the most important biological discoveries of the 20th century. B4 1954 Beckman was a pioneer in ultracentrifugation. Customers continue to recognize our ultracentrifuges as the benchmark in the fi eld. C1 1956 Invented by Joe and Wallace Coulter, the Model A Coulter Counter, the fi rst automated cell counter, was a scientifi c breakthrough in laboratory science. D1 1975 Over the years, Beckman participated in a variety of unique markets. A Beckman Gas Chromatograph was on board the Viking I Lander on its maiden voyage to Mars. E1 1980 Recurring revenue from the sale of test reagents has always been a key part of the chemistry market for Beckman Coulter. We currently offer more than 100 diagnostic reagents for use on our chemistry analyzers. E4 1994 The Biomek® 2000, an automated liquid handling workstation, services the life science market, automating and simplifying time-consuming and repetitive steps. P4 Beckman Coulter 2009 Annual Report Leading in today’s market During 2009, the company consolidated its Diagnostic testing represents less than 3% of Orange County, California facilities, opening its total healthcare costs, but infl uences over 60% new world headquarters in Brea, California. of the decision-making. Beckman Coulter’s focus is to help We lead the way with systems that create the world’s most efficient maximize customer productivity and laboratories. For our top competitors, support critical decisions that lead to biomedical testing is one business improved patient health. Our innovative among many; for Beckman Coulter, instruments, reagents and expertise it is our sole focus. In today’s expand our customer’s testing market, we are one of the few capacity, improve responsiveness participants with full capacity to and aid in managing labor costs, the design, develop, manufacture, sell largest and most signifi cant component and service our products. of laboratory expenses. Our systems and our broad and ever increasing menu of tests are designed to enable our customers to produce accurate and precise information in the most effi cient and economical manner. Beckman Coulter 2009 Annual Report P5 12345 A B C D E Images from left to right A1 1996 Acquiring Hybritech gave Beckman Coulter an entry into the $8 billion immunoassay market and led to the development of our leadership position in PSA testing. A3 1997 Acquisition of the Access product line from Sanofi enabled Beckman Coulter to more fully participate in the Immunoassay market. The company’s UniCel DxI 800 is the fastest immunoassay system on the market today. C1 1997 The Coulter acquisition added hematology, fl ow cytometry and hemostasis product lines, giving the company the broadest portfolio of laboratory testing instruments available from one source. Our newest cellular analysis system, the UniCel DxH 800, is the fi rst in a series of products designed to add innovative tests for an even more complete cell analysis solution. C4 2008 Introduction of the UniCel DxC family of chemistry analyzers in 2005 extended our leadership in the routine clinical lab. We launched fi ve new integrated Chemistry-Immunoassay work cells giving us the most complete product portfolio aimed at addressing the fastest growing segment of the clinical chemistry market. E1 2009 Our transformation of the fl ow cytometry product line is well underway as demonstrated by the newly introduced Gallios fl ow cytometer developed for the clinical diagnostics market. E3 2009 The Olympus Diagnostics Systems acquisition adds ultra-high throughput clinical chemistry systems includes the AU5800, in development, to our portfolio extending our product breadth and geographic reach. P6 Beckman Coulter 2009 Annual Report Letter to Shareholders “As we enter 2010 - our 75th anniversary as a company – we are confi dent in our ability to build value for shareholders through our focus on growth, quality, and operating excellence. We create, deliver and capture value as we follow our inspiration of improving patient health and reducing the cost of care.” An Attractive Business Model for Good diagnosis; more efficient patient accounted for more than 80% of Times and Bad admission processes; and earlier, more our 2009 total revenue stream and In last year’s annual report, I stated confi dent discharges from hospitals. contributed over 90% of our gross that “In uncertain environments such Our focus on customer productivity profi t. as these, the defensive nature of makes us part of the solution to • An industry-leading customer our business model and stability of controlling healthcare costs. retention rate of over 85%. our sector’s competitive dynamics • Leadership positions across afford an opportunity for continued, As a leading supplier to clinical labs, product lines and in more than 160 predictable growth and value creation.” Beckman Coulter strives to understand countries. In developed countries, The company’s performance in 2009 the process of biomedical testing and aging populations drive increased not only lived up to those expectations, then to simplify, automate and bring demand for testing. In emerging it surpassed them. innovations to the lab – helping reduce markets, rapidly growing demand variability, eliminate errors, improve for healthcare is driving double The lab remains a great bargain in clinical outcomes and increase lab digit growth in testing volumes. healthcare. Clinical laboratory testing effi ciency. Fundamentally, we raise • A growth strategy that combines provides more than 60% of the hospital productivity while reducing the the industry’s most prolifi c product information used in the diagnosis and total cost of healthcare. We accomplish development capability, plans for prognosis of the average healthcare this through clinical laboratory systems expansion into adjacent markets, episode. While at the same time the and solutions, leverageable leadership such as molecular diagnostics and cost of lab services, as a percentage positions in our served markets and near-patient testing, and a clear of total healthcare spending, has been the dedication of almost 12,000 and prudent acquisition strategy trending down consistently over time.
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