Siemens acquired DPC & Bayer\'s Centralized Lab Diagnostics business. Subsequently Siemens acquired Dade Behring becoming the 2nd largest Diagnostics company after Roche. Here\'s a quick update on strategy, deal mechanism, product fitment & global/ India overview.

1. Siemens acquisition of Dade Behring
Update on the Deal Mechanism
Implication – Global & India

2. The news is out!!!

3. Flow of Presentation
Background
Deal & Mechanism
Change of Guards!
The New Kid on the Block!
What’s in Dade Behring for Siemens?
Portfolio Evaluation
The New Game Plan & Impact: India
What is Dade Behring India?
Comments

4. Background
The Siemens – Dade deal is between world’s largest clinical
chemistry company and world’s only full-service diagnostics
company
Siemens has agreed to buy Dade Behring (DADE) for $7 billion, or
$77 a share; shares at this time were around US$ 54
Dade Behring has accepted the offer with board of directors’ votes &
the transaction is expected to be completed in next 3-6 months
With this acquisition; Siemens will own ∼ 20% market share of IVD
market
India IVD market is estimated at Rs. 10 Bn with ∼ 17% growth with
major shares; ∼ 77% from Chemistry & Immunochemistry
business
Siemens India has completed Bayer Diagnostics acquisition in 2006
Need to understand the new portfolio equation, synergies & India
angle to the situation

5. Deal & Mechanism
DPC
3.3 X Sales
11 X EBITDA
Bayer
2.8 X Sales
17 X EBITDA
Dade
3.5 X Sales
39 X EBITDA
GE-Abbott
3 X Sales
15 X EBITDA
The Dade deal is dubbed as ‘Horrendous’ by the analysts due to the 39X pay-out on
EBITDA. However, Siemens has increased profit projections from 11 – 13% to 13 – 15%
for the Healthcare business by 2010. Competing deal of GE – Abbott is already called
off.

6. Was this deal required for Siemens?
SIE:GR DAX:IND SMAWF:US SPX:IND NSIEM:IN SENSEX:IND
Across the geographies; Dade Behring purchase has not been liked by the investors as it is
expected to hit the bottom-lines
Dade deal is expected to be 38% more than the market value while exorbitant with 39 times
EBIDTA
DAX: Frankfurt; Siemens shares have dropped by 6% to € 99.70 from € 106.04; this
reduction has eroded company revenue by € 6 Bn
SENSEX: Mumbai; Siemens shares have dropped by 18% to Rs. 1207 from Rs. 1478
Broadly; the deal is expected to catapult Siemens in the top 2 slots but the pay-out will take
time & would compromise profitability for next two years
Source: Bloomberg, 1st Aug, 07

7. Was this deal required for Dade?
DADE:US SPX:IND DADE:US Last 3 Yrs
Dade Behring shares have been showing gradual increase over last 3 years
while it grew by 33% to US$ 74.6 from US$ 56 at NASDAQ
Dade had been struggling on the new innovation in the existing portfolio &
was operating in only one of the two high-growth segments of Dx business
Dade had been performing well on the revenue expectations; while the
shareholders have gained with the over-valuation of the stock
Source: Bloomberg, 1st Aug, 07

8. Change of Guards!
Pharmacy
Driven
In Vitro Diagnostics (IVD)
Engineering
Driven
The series of recent deals from Siemens in IVD market have changed the historical view point towards
Diagnostics industry which started as an off-shoot of Pharma companies. Now Engineering has taken a
lead over Chemistry & the now industry dynamics have completely changed.

9. The New Kid on the Block!
Leap to
the # 1

10. What’s in Dade Behring for Siemens?
Dade: Geography Split Dade: Revenue Stream Dade: Portfolio Contribution
Post-inclusion of Dade,
APAC focus is expected
to increase with Siemens
Microbiology &
Hematology become
leadership areas
alongwith Immuno while
strengthening chemistry
Dade inclusion makes
Siemens an only & all-in-
one Dx service provider
Dade: Segment Market Shares
Source: Dade Behring

11. Synergistic & Comprehensive Portfolio… Finally
1↑ ! ∼ 1
ID Dx using DOA & Tx Drug
Fully-integrated
microtitre plates Monitoring
chemistry for
Available ex-US More Drugs
high volume
included
labs
1 1
Cardiac Dx ↑&!
Coag & PFT
POC & LTS
thru Global
Alliance with
Sysmex
Automation
1 1
Plasma Protein
Automated
Testing
Microbiology
Immediate
Testing
application in
covering latest
Nutri & Cardiac
pathogens
Long term use
in Proteomics
Denotes competitive positions; 1 – Leader, ↑ - Growing, ! – New, ∼ - Also available

12. India gets it’s share too!
14%
13% India IVD Market Share Scenario 2006 (Figs in %)
11%
9% Leap to
the # 3
8%
6% 6%
3%
Transasia Roche Siemens + Abbott Siemens Nicholas J&J Dade
Dade
Source: Industry Estimates

13. What is Dade Behring India?
Ranbaxy ties up with Dade acquires Dx assets Dade Behring India
Dade Behring for a JV from Ranbaxy fully functional
Annual sales Rs. 120 Mn.
1987 2000 2001 2002 2003 2004 2005 2006 2007
Ranbaxy started selling Ranbaxy sells the allied business
Dade products as a with remaining IVD products to
distributor in India ICICI Venture Funds
Dade present in India as a wholly owned subsidiary as Dade Behring India Pvt Ltd. Okhla,
Delhi with estimated annual turnover Rs. ∼ 312 Mn; 50 people, Country Manager – Dr. P.
Sivakumar
Virology business of Dade was with Merck which has been shifted back to Dade
Routine Chemistry [3% MS]
Automated & Medium range Immunochemistry [3% MS]
automated instruments with the Coagulation [20% MS] Non-isotopic systems
reagents Rs. 150 Mn Semi-auto/ manual instruments Rs. 110 Mn
(Dimension RXL/XL/ES) Rs. 65 Mn (BNPProSpec)
(Sysmex alliance)
Source: Industry Estimates

14. Thank You!