r

1
Marc Verkuil DACT meeting Sr Director,
Treasury Tax November 12, 2010
2

SEQUENCE OF EVENTS
Jun 2008 spin-off (MBO)
Nov 2008 merger
Jan 2010 asset sale
Feb 2010 establishment of new stand-alone
business
50/50 JV
3
APPLIED BIOSYSTEMS INVITROGEN MERGER

• highly leveraged with funding from gt30 banks

• different business, fiscal, and legal models

• different ERP systems

• Invitrogen management and culture leading

• RBS (EMEA), Citi (APJ), JPM (US)

• BofA (EMEA), HSBC (APJ), BofA (US)

• zero-balance cash pooling in EMEA and APJ

• principally no pooling

• global in-house bank model system

• no in-house banking

• standard, international straight-through
  processing

• limited straight-through processing

• structured cash flow hedging program
• B/S exposures principally consolidated with
  in-house bank

• opportunistic cash flow hedging program
• B/S exposures with multiple entities

4
APPLIED BIOSYSTEMS INVITROGEN MERGER
EUR Cash
External cash balances finance company
USD Cash
CHF Cash
GBP Cash
DKK Cash
NOK Cash
SEK Cash
CZK Cash
HUF Cash
EUR ZBA
NOK ZBA
SEK ZBA
Zero cash balances local entities
DKK ZBA
USD ZBA
EUR ZBA
EUR ZBA
GBP ZBA
RUB
EUR ZBA
USD ZBA
PLN
EUR ZBA
CZK ZBA
CHF ZBA
ZAR
USD ZBA
EUR ZBA
HUF ZBA
EUR ZBA
EUR ZBA
EUR ZBA
5
APPLIED BIOSYSTEMS INVITROGEN MERGER
EUR Cash
External cash balances finance company
USD Cash
CHF Cash
GBP Cash
DKK Cash
NOK Cash
SEK Cash
CZK Cash
HUF Cash
EUR IHB
NOK IHB
SEK IHB
In-house cash balances local entities
DKK IHB
USD IHB
EUR IHB
EUR IHB
GBP IHB
EUR IHB
USD IHB
EUR IHB
CZK IHB
CHF IHB
USD IHB
EUR IHB
HUF IHB
EUR IHB
EUR IHB
EUR IHB
6
DUTCH FINANCE COMPANY FUNCTIONS
Manufacturing Operations US
Manufacturing Operations SG
Royal Bank of Scot land
USD ZBA
USD ZBA
GBP ZBA
Product ( Service) Receivables
JPY ZBA
SEK ZBA
(EMEA only)
SGD ZBA
Ci t ibank
NOK ZBA
Factoring Company
AUD ZBA
DKK ZBA
NZD ZBA
EUR ZBA
Cash Management Center
FX Management Center
KRW
CHF ZBA
Dutch finance company
CNY
HUF ZBA
In-House Bank Netting Center
TWD
CZK ZBA
THB
PLN
CHF IHB
PLN IHB
CZK IHB
HUF IHB
SEK IHB
NOK IHB
DKK IHB
GBP IHB
AUD IHB
JPY IHB
USD IHB
NZD IHB
KRW
CNY
TWD
THB
PLN
ZAR
Payables Center (SAP upload)
(Europe, EMEA, Japan, APAC, x-border
North-America)
7
APPLIED BIOSYSTEMS INVITROGEN MERGER
EUR Cash
External cash balances finance company
USD Cash
CHF Cash
GBP Cash
DKK Cash
NOK Cash
SEK Cash
CZK Cash
HUF Cash
EUR ZBA
NOK ZBA
SEK ZBA
Zero cash balances local entities
DKK ZBA
USD ZBA
EUR ZBA
EUR ZBA
GBP ZBA
RUB
EUR ZBA
USD ZBA
PLN
EUR ZBA
CZK ZBA
CHF ZBA
ZAR
USD ZBA
EUR ZBA
HUF ZBA
EUR ZBA
EUR ZBA
EUR ZBA
8
APPLIED BIOSYSTEMS INVITROGEN MERGER
EUR Cash
EUR Cash
External cash balances finance company
CHF Cash
USD Cash
DKK Cash
NOK Cash
GBP Cash
SEK Cash
USD Cash
CHF Cash
GBP Cash
DKK Cash
NOK Cash
SEK Cash
CZK Cash
HUF Cash
EUR ZBA
NOK ZBA
EUR Cash
NOK Cash
SEK ZBA
Zero cash balances local entities
SEK Cash
DKK ZBA
DKK Cash
USD ZBA
EUR ZBA
EUR ZBA
GBP ZBA
RUB
EUR Cash
GBP Cash
EUR Cash
EUR ZBA
USD ZBA
PLN
EUR Cash
EUR ZBA
CZK ZBA
EUR Cash
CHF ZBA
ZAR
CHF Cash
USD ZBA
USD Cash
EUR ZBA
HUF ZBA
EUR Cash
EUR ZBA
EUR Cash
EUR ZBA
EUR Cash
EUR ZBA
9
APPLIED BIOSYSTEMS INVITROGEN MERGER
EUR Cash
EUR Cash
External cash balances finance company
CHF Cash
USD Cash
DKK Cash
NOK Cash
GBP Cash
SEK Cash
USD Cash
CHF Cash
GBP Cash
DKK Cash
NOK Cash
SEK Cash
CZK Cash
HUF Cash
EUR ZBA
NOK ZBA
EUR ZBA
NOK ZBA
SEK ZBA
Zero cash balances local entities
SEK ZBA
DKK ZBA
DKK ZBA
USD ZBA
EUR ZBA
EUR ZBA
GBP ZBA
RUB
EUR ZBA
GBP ZBA
EUR ZBA
EUR ZBA
USD ZBA
PLN
EUR ZBA
EUR ZBA
CZK ZBA
EUR ZBA
CHF ZBA
ZAR
CHF ZBA
USD ZBA
USD ZBA
EUR ZBA
HUF ZBA
EUR ZBA
EUR ZBA
EUR ZBA
EUR ZBA
EUR ZBA
EUR ZBA
10
APPLIED BIOSYSTEMS INVITROGEN MERGER
EUR Cash
EUR Cash
External cash balances finance company
CHF Cash
USD Cash
DKK Cash
NOK Cash
GBP Cash
SEK Cash
USD Cash
CHF Cash
GBP Cash
DKK Cash
NOK Cash
SEK Cash
CZK Cash
HUF Cash
EUR IHB
NOK IHB
EUR IHB
NOK IHB
SEK IHB
In-house cash balances local entities
SEK IHB
DKK IHB
DKK IHB
USD IHB
EUR IHB
EUR IHB
GBP IHB
EUR IHB
GBP IHB
EUR IHB
EUR ZBA
USD IHB
EUR IHB
EUR IHB
CZK IHB
EUR ZBA
CHF ZBA
CHF IHB
USD IHB
USD IHB
EUR IHB
HUF IHB
EUR IHB
EUR IHB
EUR IHB
EUR IHB
EUR IHB
EUR IHB
11
DUTCH FINANCE COMPANY FUNCTIONS
Manufacturing Operations US
Manufacturing Operations SG
USD ZBA
USD ZBA
USD ZBA
USD ZBA
HSBC
GBP ZBA
Product ( Service) Receivables
GBP ZBA
JPY ZBA
DB
JPY ZBA
SEK ZBA
(EMEA only)
SEK ZBA
SGD ZBA
SGD ZBA
NOK ZBA
Factoring Company
NOK ZBA
RBS
CI T I
AUD ZBA
AUD ZBA
DKK ZBA
DKK ZBA
NZD ZBA
NZD ZBA
EUR ZBA
FX Management Center
EUR ZBA
KRW
Cash Management Center
CHF ZBA
Dutch finance company
CHF ZBA
CNY
HUF ZBA
In-House Bank Netting Center
TWD
CZK ZBA
THB
PLN
CHF IHB
PLN IHB
CZK IHB
HUF IHB
SEK IHB
NOK IHB
DKK IHB
GBP IHB
USD IHB
AUD IHB
CNY
JPY IHB
NZD IHB
KRW
TWD
THB
USD IHB
GBP IHB
SEK IHB
NOK IHB
DKK IHB
CHF IHB
JPY IHB
AUD IHB
NZD IHB
ZAR
Payables Center (SAP upload)
(Europe, EMEA, Japan, APAC, x-border
North-America)
12

SEQUENCE OF EVENTS
Jun 2008 spin-off (MBO)
Nov 2008 merger
Jan 2010 asset sale
Feb 2010 establishment of new stand-alone
business
50/50 JV
13
DANAHER ASSET DEAL
AB SCIEX VENTURE

• only assets liabilities acquired, all
  dedicated manufacturing, RD, sales, service
  support associates transferred (plus a small
  group of others)

• no legal entities, no registrations, no IT (no
  systems), no finance, no HR, no distribution, no
  offices, etc

• two former JV partners different ERP systems,
  different teams/cultures, different processes, etc

• transitional services agreements with Life
  Technologies (and MDS)

• RBS (EMEA), Citi (APJ), JPM (US)

• wide range of banks

• zero-balance cash pooling in EMEA and APJ

• primarily notional cash pooling with multiple
  local banks

• global in-house bank model system

• no in-house banking

• uniform, international straight-through
  processing

• limited straight-through processing

• no hedging at all

• B/S exposures principally consolidated with
  in-house bank

14
DANAHER ASSET DEAL
AB SCIEX VENTURE
USDCash
EUR Cash
GBPCash
Notional pool balances finance company
EUR Cash
External cash balances finance company
USD Cash
CHF Cash
GBP Cash
DKK Cash
NOK Cash
SEK Cash
CZK Cash
HUF Cash
EUR ZBA
NOK ZBA
SEK ZBA
Zero cash balances local entities
DKK ZBA
USD ZBA
EUR ZBA
EUR ZBA
GBP ZBA
RUB
EUR ZBA
USD ZBA
PLN
EUR ZBA
CZK ZBA
CHF ZBA
ZAR
USD ZBA
EUR ZBA
HUF ZBA
EUR ZBA
EUR ZBA
EUR ZBA
15
Marc Verkuil DACT meeting Sr Director,
Treasury Tax November 12, 2010