HealthCare Sector Pitch XLRI Jamshedpur Team Number 9 Pranay Roop Chatterjee Karneek Patel Siddhant Ranjan http://www.marketwatch.com/investing/stock/tmo

Sector Overview Market Cap. - $111.6 Bn | GDP contribution – 17.5% | Annual Expenditure - $ 3 Tn Sector Trends Top Issues 2017 Industry disruption through technology, data analysis and AI Technological advancements Artificial Intelligence : Digitized supply chain, efficient billing, accelerated R&D 3D Printing: Customized implants, prosthetics and transplants, on demand inventory Internet of Things: Inventory control, remote patient monitoring, digitized operations Virtual Reality: Stress relief and patient distraction, medical school education Value based payment models on the rise Payment models Bundled payment arrangements: Patients pay a single payment for a specific episode of care Accountable Care Organization: Applying for this CMS status ensures there is no duplication of services Collaborations: Increased partnerships in 2016 to survive the shift to value based models Significant legislation in the US Healthcare space Regulations MACRA: Merit-Based incentive payment system, quality reporting program, advanced care information ACA: Affordable Care Act repeal-and-replace proposals uncertain, health care coverage at stake Diet related health issues and nutrition, obesity Use of emerging technology like block chain and AI High-deductible heath plans; Payment systems are based on volume, not value Regulation of drug prices Competitive Landscape Insurers Top 2 insurers hold 50% of the market making premiums higher Chart 1: Expenditure as a percentage of GDP Chart 2: Change in wages per US sector Hospitals Highly concentrated markets – 1,412 mergers from 1998 to 2015 Physicians Physicians joining hospitals - 12% jump from 2012 to 2015 Sources: CMS, Becker Hospital Review, PwC: Top Health Industry Issues of 2017, Deloitte: Health Care Outlook 2017, NY Times Markets, Forbes Opinion – Martin Gaynor

Screening Process Total listed healthcare companies - 814| Companies satisfying given criteria - 55 Further filters applied for shortlisting of favourable companies to invest in. 19 companies shortlisted on the basis of below filters Qualitative Analysis P/E Ratio: The P/E ratio should be less than the sector average P/B Ratio: The P/B ratio should be less than the sector average EV/EBITDA: The EV/EBITDA ratio should be less than the sector average D/E: The D/E ratio should be less than 100 EMA: 13 EMA should be greater than 55 EMA 21 companies shortlisted on the basis of below filters Quantitative Analysis Chairperson Tenure: A higher chairperson tenure indicates stability in the management of the company % shared held by chairperson: Higher the % shared held by chairperson, the better it is for the stakeholders of the company CEO Duality: CEO duality is not preferred in the management of the company Independent Chairperson: Weights assigned to each factor: Chairperson Tenure-0.3, % shares held by chairperson-0.3, CEO Duality-0.1, Independent Chairperson-0.3 3 companies were satisfying both the quantitative and qualitative filters Average volume traded in market Final shortlisting filter Average volume traded in market: Higher the volume traded, better the company to invest in. So, on the basis of all the above analysis, Thermo Fisher Scientific is chosen as the company to invest in. https://www.bloomberg.com

Screening Process Healthcare sector – X companies-814 After applying given criteria – 55 Further criteria: P/E ratio < Sector Average P/B ratio < Sector Average E/V EBITDA < Sector Average D/E ratio < 100 13 EMA > 55 EMA Remaining companies – 19 Quantitative factors –management: Chairperson tenure % shares held by chair CEO DUALITY Independent chairperson Final filter: avg Volume traded indicating liquidit

Thermo Fisher Scientific Inc. 6 Key Strengths of Thermo Fisher Scientific 5 Ecosystem of life sciences devices and its massive scale provides the company a competitive edge in this space. 1 History of strong acquisitions. 3 Largest research and development budget in this industry Thermo Fisher Scientific Inc. The company was founded in 2006 by a merger of Thermo Electron and Fisher Scientific Thermo Fisher Scientific, Inc. provides analytical instruments, equipment, reagents and consumables, software and services for research, analysis, discovery and diagnostics Four Business segments: Analytical Technologies, Specialty Diagnostics, Life Sciences Solutions and Laboratory Products and Services 2 Diversity of Revenue sources 4 Plants to strengthen its foothold in emerging markets like China and India 6 High Profitability Margins indicating excellent operational and financial management of the company http://www.marketwatch.com/investing/stock/tmo; https://seekingalpha.com/article/4079001-investors-need-understand-huge-thermo-fisher-really; https://www.fool.com/investing/general/2014/10/24/3-reasons-thermo-fisher-scientifics-stock-could-tu.aspx

Thank you