Positioning Products to Customer in the Target Markets

• HPLC used around the world in industrial, research and educational settings

• Steady growth in installed conventional HPLC and Semi-Prep markets

• Keep pace with the market needs

Why a New Integrated HPLC System?

Analytical

Benefit Features

Expected performance State of play with specs equivalent or better than waters/Agilent

Viable Data Solution Client server, compliant and fully featured with improved ease of use

Vendor support Consumables, service training, support world wide and at a consistently high level

Semi Prep to PrepVersatility Extended detection, materials and flow range via options

Reliability New fraction collector and advanced control of collection

Easy scale-up Fully automated scale-up through Scale-Up Module and Galaxie

Advantages of Integrated Analytical and Prep LC System

• Constitutes one quarter of HPLC demand for HPLC

• Independent testing labs, government bodies, industry effluent testing labs

• Driven by low detection limits, regulatory compliance and productivity

Environmental Industry

• Trace organic pollutants in drinking water, ground and surface water, effluents, toxic wastes, soils and seawater

• PAH, PCB and so on

• Controlled by regulatory bodies such as EPA, DIN and so on

Common Industry Applications

• Performance – sensitivity and precision

• Data compliance and features – for regulated methods

• Improved reliability and low operating costs – for higher throughput and lower downtime

What Do Varian Offer This Industry?

Waters and Agilent have the largest share of the market worldwide

Shimadzu tends to be strong in Asia

Key Competitors

•Gradient pumps with degasser

•Autosampler

•Variable UV, diode array and fluorescence detectors

•Column oven

Environmental Systems Requirements

PPS Water Authority, KoreaInstitute Sea Research (CNR), ItalyZhuhai Water Supply Co., ChinaGewasser und Bodenschutz, SwitzerlandSierra Environmental Monitoring, USAMinistry of Environment & Energy, CanadaHeritage Labs, USAWater Eco Science, AustraliaPennsylvania American Water, USAKorea Water Resources Corp., KoreaDepartment of Underground Water, Thailand

Common Varian Customers in this Market Segment

• Typically QA/QC or environmental monitoring application

• Instruments tend to be dedicated to an application such as:

•Environmental effluent monitoring

•Production of raw materials, purity analysis

•Dissolved materials in organics solvents etc.

• Driven by performance, price, reliability

Chemical and Petrochemical Market

•Waters are particularly strong

•Agilent and Shimadzu

•Dionex

Competitors In Petrochemical Industry

Isocratic or gradient pumps

Autosampler for improved productivity

UV detectors with RI and ELSD detectors the most relevant detectors

What Type of LC System is Important?

Ricca Chemicals, USAPoco Graphite, USAUnion of German Cement Factories, GermanyMerck, FranceCiba Specialty Chemicals, SwitzerlandSantoku Chemical Industries Co., Japan

Existing Varian Petrochemical Customers

Analysis of food and soils

Common analyses include crops, soils, feed, fertiliser

Typical target substances include sugars, vitamins, organic acids and trace contaminants

Industry is driven by price/cost benefit, ease of use, performance and robustness with challenging matrices

Agriculture And Food

Gradient pumpsAutosamplers increase productivityUV and PDA detectors most common with ELSD and RI also relevantCommon Varian customers:

Agriquem, SpainForschungsanstalt Agriculture, GermanyUniversity for Agriculture Science, GermanyPepsi (JVA), IrelandAg Labs (Agmin Chelates), AustraliaUniversity of Giessen, Germany

What Type Of LC System Is Important?

Varied applications – research, environmental, food and beverage, biological

Wide variety of laboratories, medical, forensic, life science, university consulting and research labs

Driven by: performance (teaching to research), price (grants), reliability

Most vendors offer low cost offerings

Government and Academic

Modular systems popularGrdient pumps degassersCooled autosamplersPDA detectors, Fluorescence and ELSD relevant

Existing Varian customersMultiLab (State Veterinary Inst.), LiechtensteinUniversity of Melbourne, AustraliaMax Planck Institut Fuer, GermanyState Agency for Standardization & Metrology, BulgariaUniversity of West Virginia, USAUniversity of Bordeaux, France

What Type of LC System is Important?

Most visible conventional HPLC and Prep LC marketSmall drug companies major users of LCCommon applications include:

– impurity analysis, – R and D, – cleaning validation, – dissolution testing – discovery and medicinal chemistry analysis purification

Pharmaceuticals Market

Performance – sensitivity and precision

Data – compliance (auditing and processing)

Reliability of instrument

Service support, response times

Waters and Agilent dominant in this market with software a major factor in many accounts

Customer Drivers

Integrated systemGradient pump with degasserAutosampler PDA with column ovenGalaxie compliance with IMS, IQ/OQ and CFR compliance

Existing Varian customersPfizer, USAGSK, UKNovartis, Switzerland

Varian Offerings to This Market

With the new integrated HPLC system Varian brings reliability, flexibility and performance to the market

Can customise systems from conventional to prep

Able to have fully integrated hyphenated IRD

Can offer one solution to the customer across a range of instrumentation

Summary