Marc Verkuil DACT meetingSr Director, Treasury & Tax November 12, 2010

SEQUENCE OF EVENTS

Jun 2008: spin-off (MBO)

Nov 2008: merger

Jan 2010: asset saleFeb 2010:

establishment of new stand-alone business

50/50% JV

APPLIED BIOSYSTEMS – INVITROGEN MERGER

> highly leveraged with funding from >30 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

> 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

> standard, international straight-through processing > limited straight-through processing

APPLIED BIOSYSTEMS – INVITROGEN MERGER

EUR Cash

EUR ZBA

EUR ZBA

EUR ZBAEUR

ZBA

EUR ZBA

EUR ZBAEUR

ZBAEUR ZBA

EUR ZBA

GBP ZBA

GBP Cash

DKK Cash

SEK Cash

CZK Cash

HUF Cash

NOK Cash

CHF ZBA

NOK ZBA

DKK ZBA

SEK ZBA

CZK ZBA

HUF ZBA

USD Cash

USD ZBA

USD ZBA

USD ZBA

Zero cash balances local

entities

CHF Cash

External cash balances finance

company

RUB

PLN

ZAR

APPLIED BIOSYSTEMS – INVITROGEN MERGER

EUR Cash

EUR IHB

EUR IHB

EUR IHBEUR

IHB

EUR IHB

EUR IHBEUR

IHBEUR IHB

EUR IHB

GBP IHB

GBP Cash

DKK Cash

SEK Cash

CZK Cash

HUF Cash

NOK Cash

CHF IHB

NOK IHB

DKK IHB

SEK IHB

CZK IHB

HUF IHB

USD Cash

USD IHB

USD IHB

USD IHB

In-house cash balances local

entities

CHF Cash

External cash balances finance

company

DUTCH FINANCE COMPANY FUNCTIONS

CHF IHB

PLN IHB

CZK IHB

HUF IHB

SEK IHB

NOK IHB

DKK IHB

GBP IHB

USD IHB

In-House Bank & Netting Center

Product (& Service) Receivables

Payables Center (SAP upload)

USD ZBA

CNY

SGD ZBA

AUD ZBA

NZD ZBA

JPY ZBA

KRW

(EMEA only)

(Europe, EMEA, Japan, APAC, x-border North-America)

TWD

AUD IHB

NZD IHB

KRW CNY TWDJPY IHB

Manufacturing Operations US Manufacturing Operations SG

Cash Management Center

FX Management Center

HUF ZBA

NOK ZBA

EUR ZBA

SEK ZBA

DKK ZBA

CHF ZBA

PLN

USD ZBA

GBP ZBA

CZK ZBA

Royal

Bank

of

Scot land

Ci t ibank

Dutch finance company

ZAR

PLNTHB

THB

APPLIED BIOSYSTEMS – INVITROGEN MERGER

EUR Cash

EUR ZBA

EUR ZBA

EUR ZBAEUR

ZBA

EUR ZBA

EUR ZBAEUR

ZBAEUR ZBA

EUR ZBA

GBP ZBA

GBP Cash

DKK Cash

SEK Cash

CZK Cash

HUF Cash

NOK Cash

CHF ZBA

NOK ZBA

DKK ZBA

SEK ZBA

CZK ZBA

HUF ZBA

USD Cash

USD ZBA

USD ZBA

USD ZBA

Zero cash balances local

entities

CHF Cash

External cash balances finance

company

RUB

PLN

ZAR

APPLIED BIOSYSTEMS – INVITROGEN MERGER

EUR Cash

EUR ZBA

EUR ZBA

EUR ZBAEUR

ZBA

EUR ZBA

EUR ZBAEUR

ZBAEUR ZBA

EUR ZBA

GBP ZBA

GBP Cash

DKK Cash

SEK Cash

CZK Cash

HUF Cash

NOK Cash

CHF ZBA

NOK ZBA

DKK ZBA

SEK ZBA

CZK ZBA

HUF ZBA

USD Cash

USD ZBA

USD ZBA

USD ZBA

Zero cash balances local

entities

CHF Cash

External cash balances finance

company

RUB

PLN

ZAR

EUR Cash

EUR Cash

GBP Cash

EUR Cash

EUR Cash

EUR Cash

CHF Cash USD

Cash

DKK Cash

NOK Cash

SEK Cash

EUR Cash

EUR Cash

CHF Cash

SEK Cash

DKK Cash

NOK Cash

GBP Cash

USD Cash

EUR Cash

EUR Cash

APPLIED BIOSYSTEMS – INVITROGEN MERGER

EUR Cash

EUR ZBA

EUR ZBA

EUR ZBAEUR

ZBA

EUR ZBA

EUR ZBAEUR

ZBAEUR ZBA

EUR ZBA

GBP ZBA

GBP Cash

DKK Cash

SEK Cash

CZK Cash

HUF Cash

NOK Cash

CHF ZBA

NOK ZBA

DKK ZBA

SEK ZBA

CZK ZBA

HUF ZBA

USD Cash

USD ZBA

USD ZBA

USD ZBA

Zero cash balances local

entities

CHF Cash

External cash balances finance

company

RUB

PLN

ZAR

EUR ZBA

EUR ZBA

GBP ZBA

EUR ZBA

EUR ZBA

EUR ZBA

CHF ZBA USD

ZBA

DKK ZBA

NOK ZBA

SEK ZBA

EUR ZBA

EUR ZBA

CHF Cash

SEK Cash

DKK Cash

NOK Cash

GBP Cash

USD Cash

EUR Cash

EUR ZBA

APPLIED BIOSYSTEMS – INVITROGEN MERGER

EUR Cash

EUR IHB

EUR IHB

EUR ZBAEUR

IHB

EUR IHB

EUR IHBEUR

IHBEUR IHB

EUR IHB

GBP IHB

GBP Cash

DKK Cash

SEK Cash

CZK Cash

HUF Cash

NOK Cash

CHF ZBA

NOK IHB

DKK IHB

SEK IHB

CZK IHB

HUF IHB

USD Cash

USD IHB

USD IHB

USD IHB

In-house cash balances local

entities

CHF Cash

External cash balances finance

company

EUR IHB

EUR IHB

GBP IHB

EUR ZBA

EUR IHB

EUR IHB

CHF IHB USD

IHB

DKK IHB

NOK IHB

SEK IHB

EUR IHB

EUR IHB

CHF Cash

SEK Cash

DKK Cash

NOK Cash

GBP Cash

USD Cash

EUR Cash

EUR IHB

DUTCH FINANCE COMPANY FUNCTIONS

CHF IHB

PLN IHB

CZK IHB

HUF IHB

SEK IHB

NOK IHB

DKK IHB

GBP IHB

USD IHB

In-House Bank & Netting Center

Product (& Service) Receivables

Payables Center (SAP upload)

USD ZBA

CNY

SGD ZBA

AUD ZBA

NZD ZBA

JPY ZBA

KRW

(EMEA only)

(Europe, EMEA, Japan, APAC, x-border North-America)

TWD

AUD IHB

NZD IHB

KRW CNY TWDJPY IHB

Manufacturing Operations US Manufacturing Operations SG

Cash Management Center

FX Management Center

HUF ZBA

NOK ZBA

EUR ZBA

SEK ZBA

DKK ZBA

CHF ZBA

PLN

USD ZBA

GBP ZBA

CZK ZBA

RBS

CI T I

Dutch finance company

USD ZBA

SGD ZBA

AUD ZBA

NZD ZBA

JPY ZBA

NOK ZBA

EUR ZBA

SEK ZBA

DKK ZBA

CHF ZBA

USD ZBA

GBP ZBAD

B

HSBC

USD IHB

GBP IHB

SEK IHB

NOK IHB

DKK IHB

CHF IHB

JPY IHB

AUD IHB

NZD IHB

THBTHB

ZAR

SEQUENCE OF EVENTS

Jun 2008: spin-off (MBO)

Nov 2008: merger

Jan 2010: asset saleFeb 2010:

establishment of new stand-alone business

50/50% JV

DANAHER ASSET DEAL: AB SCIEX VENTURE

> only assets & liabilities acquired, all dedicated manufacturing, R&D, 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

> 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

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

> no hedging at all

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

> uniform, international straight-through processing > limited straight-through processing

EUR Cash

EUR ZBA

EUR ZBA

EUR ZBAEUR

ZBA

EUR ZBA

EUR ZBAEUR

ZBAEUR ZBA

EUR ZBA

GBP ZBA

GBP Cash

DKK Cash

SEK Cash

CZK Cash

HUF Cash

NOK Cash

CHF ZBA

NOK ZBA

DKK ZBA

SEK ZBA

CZK ZBA

HUF ZBA

USD Cash

USD ZBA

USD ZBA

USD ZBA

Zero cash balances local

entities

CHF Cash

External cash balances finance

company

RUB

PLN

ZAR

EUR Cash

GBPCash

USDCash

Notional pool balances finance

company

DANAHER ASSET DEAL: AB SCIEX VENTURE

Marc Verkuil DACT meetingSr Director, Treasury & Tax November 12, 2010