1984 2019 2019 MARKED DANAHER’S 35TH ANNIVERSARY To honor this milestone, the front cover of this year's annual report features the original Danaher logo and bright blue color palette. We proudly celebrate our company's history as the prelude to a 35 future filled with opportunity. By living our core values of building the best team, continuously improving, “ listening to our customers every day and driving innovation, we ultimately deliver long-term shareholder value.” Thomas P. Joyce, Jr. Financial Operating Highlights (dollars in millions except per share data and number of associates) 2019 2018 Sales $ 17,911.1 $ 17,048.5 Operating Profit $ 3,269.4 $ 3,055.1 Net Earnings $ 2,432.3 $ 2,406.3 Net Earnings Per Share (diluted) $ 3.26 $ 3.39 Operating Cash Flow $ 3,657.4 $ 3,644.0 Investing Cash Flow $ (1,166.1) $ (2,873.9) Financing Cash Flow $ 16,589.9 $ (797.4) Capital Expenditures $ (635.5) $ (583.5) Capital Disposals $ 12.8 $ 6.3 Free Cash Flow (Operating Cash Flow less Capital Expenditures plus Capital Disposals) $ 3,034.7 $ 3,066.8 Number of Associates 60,000 58,000 Total Assets* $ 62,081.6 $ 47,832.5 Total Debt ** $ 21,729.1 $ 9,740.3 Stockholders’ Equity $ 30,281.9 $ 28,226.7 Total Capitalization (Total Debt plus Stockholders’ Equity) $ 52,011.0 $ 37,967.0 * 2018 data includes both continuing and discontinued operations ** Long-Term Debt ($21,516.7 for 2019 and $9,688.5 for 2018) plus Notes Payable and Current Portion of Long-Term Debt ($212.4 for 2019 and $51.8 for 2018) All financial data set forth in this annual report relates solely to continuing operations unless otherwise indicated. 2019 Segment Revenue and Results LIFE SCIENCES • 63% Recurring • 37% Nonrecurring $ 27% MIX GEO 38% North America Adjusted • 7.0 B 27% Western Europe EBITDA Margin • • 27% High-Growth Markets • 8% Other Developed Markets DIAGNOSTICS • 84% Recurring • 16% Nonrecurring $ 26% MIX GEO 39% North America Adjusted • 6.6B 17% Western Europe EBITDA Margin • • 38% High-Growth Markets • 6% Other Developed Markets ENVIRONMENTAL & APPLIED SOLUTIONS • 54% Recurring • 46% Nonrecurring $ 26% MIX GEO 43% North America Adjusted • 4.4B 24% Western Europe EBITDA Margin • • 30% High-Growth Markets • 3% Other Developed Markets All pie charts represent total 2019 revenue. Dear Shareholders, THOMAS P. JOYCE, JR. President and Chief Executive Officer 2019 marked an important milestone in Danaher’s history as we celebrated our thirty-fifth anniversary as a company. Over the course of that time we have continuously evolved toward a better, stronger Danaher—and 2019 was no exception. Our strong financial performance in combination with two significant portfolio moves further advanced our transformation into a higher growth, 2019 Results innovation-driven science & technology company. Our 60,000 associates around the world came together • Core revenue growth of 6.0%, with to deliver our second consecutive year of 6% core Life Sciences and Diagnostics both revenue growth or better, led by high-single digit core achieving 7.0%. revenue growth in both our Life Sciences and Diagnostics segments. Our strong performance was broad-based— • Gross profit margin of 56%. driven by both recently acquired and more tenured • Core operating profit margin businesses in the portfolio—and we believe we continued expansion of 100bps. to capture market share through new product innovation and enhanced commercial execution. • Adjusted diluted net earnings per share (EPS) growth of 9.0%. We achieved 100 basis points of core operating profit • Free cash flow of $3 billion marks margin expansion (core OMX) in 2019, and averaged the 28th consecutive year in which 100 basis points of annual core OMX over the last three our free cash flow has exceeded years. This performance enabled us to continue investing net income. in commercial and innovation initiatives which have contributed to our market share gains. But the numbers only tell part of Danaher’s story in * The acquisition remains subject to customary 2019. This was another pivotal year as we initiated two conditions and is expected to be completed in the first quarter of 2020. important transactions to further our evolution into a higher growth, innovation-driven company. We completed the IPO and split-off of our Dental business into an independent, publicly traded company, Envista (NYSE: NVST). And we announced our agreement to acquire GE’s Biopharma business, which will be called Cytiva* when it officially becomes part of Danaher. Cytiva is an outstanding business with a team of passionate, highly engaged associates whose innovative solutions speed the development and production of revolutionary biopharmaceutical drugs. We believe that together we can generate even greater long-term value for customers, associates and shareholders, and we look forward to welcoming Cytiva to Danaher in 2020. The Danaher Another important step toward building The Best Business System Team was the addition of two new members to While our portfolio continues to evolve, the our Board of Directors: Dr. Jessica Mega and Dr. Danaher Business System (DBS) remains the Pardis Sabeti. Both of these women bring diverse driving force in our pursuit of a better, stronger scientific expertise and inspiring perspectives to Danaher. DBS is our core—it’s who we are, and how Danaher, and we are privileged to benefit from we do what we do. The team’s daily commitment their valuable insights. to DBS and our Core Values is what differentiates us. And what unifies us is our Shared Purpose— Customers Talk, Helping Realize Life’s Potential—for our associates, We Listen and Innovation our customers and partners, our communities and Defines Our Future ultimately our shareholders. DBS is our competitive advantage and continued to be the primary driver Our potential is inherently linked to that of our of our strong performance in 2019. customers. An important part of our competitive advantage is the innovative expertise that we Let’s take a closer look at how we lived each of our bring to bear on our customers’ most pressing Core Values this year. challenges addressing global health and safety. Together, we are agents of possibility—partnering The Best Team Wins every day to make a difference in the world. The best team is one that fully reflects who we are At Trojan Technologies, we bring more than and who we want to be. Our people are our greatest forty years of experience with ultra-violet (UV) asset, and realizing their full potential requires that water disinfection to provide our customers we build and sustain a culture of inclusion and with an effective, chemical-free water treatment belonging, where everyone feels empowered to solution. Each day, more than one billion people show up to work each day as their authentic self. Our around the world enjoy clean water that has been efforts around diversity and inclusion are among the treated by Trojan UV systems. And continuous important drivers of associate engagement, and we advancements in our technology now enable our have made good progress on these fronts: over the customers to consume up to 30% less energy last five years, our associate engagement score is up using the UV disinfection process. more than 2,000 basis points. Sepsis affects 30 million people worldwide and We continue to focus on talent development, has a mortality rate higher than prostate cancer, investing in our associates’ potential as long-term breast cancer and HIV/AIDS combined. It is critical Danaher leaders. Our Associate Resource Groups to act quickly with sepsis, but it is very challenging (ARGs) create opportunities for underrepresented to diagnose. Beckman Coulter Diagnostics’ Early individuals including women and people of color to Sepsis Indicator (ESId) is a first-in-class FDA- connect personally and collaborate professionally— cleared hematology parameter that can provide all in the spirit of achieving their highest potential. clinicians with an earlier alert to this life-threatening And we are honored to have been named to Forbes' condition—a significant advancement in the global list of Best Employers for Women (2019) and Best effort to curb this deadly illness. Employers for Diversity (2018 & 2019). Another important development in 2019 was Pall’s contribution to a breakthrough pediatric gene therapy, Zolgensma®, which is manufactured using Pall's iCELLis bioreactor. Zolgensma® is the first gene therapy to treat children under the age of two who suffer from spinal muscular atrophy—the number one genetic cause of death for infants. Pall Danaher Core Values is proud to contribute to a life-changing treatment for this devastating disease. Finally, at Videojet, we are using digital technology to help customers run their packaging processes and plants more efficiently, with fewer instances of disruptive and costly downtime. Videojet’s industry-leading installed base of more than 10,000 connected printers enables service teams to resolve 50% of customer problems remotely today. The data generated provides valuable insights to help Videojet design better new products for customers—eliminating issues that were encountered in the past and, in turn, enhancing productivity. Kaizen is Our Way of Life At the heart of DBS is kaizen, “continuous improvement.” We challenge ourselves to be better every day, and the tools and processes of DBS are uniquely impactful in this endeavor. Our world-leading water quality analytics business, Hach, continues to demonstrate the power of DBS twenty years into its journey as part of Danaher. Driven by a commitment to disciplined execution and a foundation of continuous improvement, Hach has evolved from a $130 million annual revenue business when it was acquired in 1999 to $1.5 billion today and the cornerstone of our Water Quality platform. During that time, Hach has expanded gross and Zolgensma® is a registered trademark of Avexis, Inc.