The Shape of Things to Come: Massachusetts 2020

June 18, 2010Newton Marriott Hotel

Mark Nemec, Ph.DManaging Director, Technology Industry Client Group

Forrester Research

Some Thoughts on The “Reset Economy”Mark R. Nemec, Ph.D.Managing DirectorForrester Research

June 18, 2010

5 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

We have experienced the “Gateway”Recession

6 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

Three Forces Driving Society

The State

Markets

Technology

7 Entire contents © 2010 Forrester Research, Inc. All rights reserved. Source: Forrester Research based on US Department of Commerce data

Communications equipment

Computer equipment

Software

0

1%

2%

3%

4%

5%

6%Innovation

andgrowth

Refinementand

digestion

Innovationand

growth

Refinementand

digestion

Innovationand

growth

Refinementand

digestion

19591–1970 1970–1976 1976–1985 1985–1992 1992–2000 2000–2010

Annual change in US IT investment-to-GDP ratio (CAGR)7.8% 1.1% 8.6% 0.2% 6.4% -4.7%

US

IT i

nve

stm

en

t-to

-GD

P r

ati

o

2010–2016

3.1%

Innovationand

growth

Beyond the Gateway

8 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

From Process Automation to Optimizing Results

Network computing helped automate transactional

processes in industries like manufacturing.

Next Gen (Smart, Cloud, Green) Computing will help make

collaborative processes more effective by better leveraging

assets and managing liabilities.

9 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

10 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

The Adoption Trend For Social Among Business Technologists Points UpApril 2010 “Social Technographics®: Business Technology Buyers”

11 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

Overall, the Future is Bright

12 Entire contents © 2010 Forrester Research, Inc. All rights reserved.

Thank you

Mark R. Nemec

+ 1 617.613.6431

mnemc@forrester.com

www.forrester.com

Jamie Goldstein General Partner

North Bridge Venture Partners

Communications & Infrastructure

Digital Media

Software

Materials

Healthcare Tech

NBVP at a Glance

Early-stage Investors

Seed & Series A

$2.3B under management

12 investment professionals

Bi-Coastal

Waltham, MA

San Mateo, CA

75 existing portfolio companies

Growth Areas for MassachusettsGrowth Areas for Massachusetts

1. Mobile

2. Video

3. Cloud Computing

4. Open Source

5. Healthcare IT

6. Advanced Materials

- Energy – Generation & Storage

- Lighting

Anchor Companies/Employers

• Starent, Quattro

• Akamai , SeaChange, Brightcove

• EMC, Citrix

• Acquia, Black Duck

• PhaseForward, Athena Health

• A123, 1366

• Color Kinetics, QD Vision

Post-Recession CompaniesPost-Recession Companies

1. Capital Efficient

• Limited capital to prove thesis

2. Scalable Business Model

3. Crisp Customer ROI

4. Inexpensive Access to Customers

5. Scrappy Management

Massachusetts’ StrengthsMassachusetts’ Strengths

Characteristics:

Technically challengingStrong ROIKnown customersWorldwide markets

Sectors:Communications EquipmentInfrastructure SoftwareAdvanced MaterialsLife Sciences

Massachusetts well positioned for the “new” economy

Frank van Mierlo

President

1366 Technologies

Solar at the cost of coal

19

Silicon can reach coal parity

*LCOE calculated assuming 5.75kWh/m2/day (17% capacity factor), a 7% discount rate, and a 30-year project life.20

We need disruptive manufacturing technologies

Need manufacturing innovations in Si PV

Invention: Bessemer Steel Process

Impact: Cut cost of steel by >60%,

Invention: Pilkington Float Glass

Impact: Cut cost of glass by >60%,

Direct Wafer

60% cost reduction in the manufacturing 

of high quality standard Si wafer.

Direct Wafer

Old1. Cast Ingot 2. Cut Brick 4. Saw Wafers

Make Wafer

Pure Silicon

1366 Direct Wafer

1 Machine

3. Grind & Polish Brick

>45% Silicon Wasted

7.0g/W

<3.0g/W

23

• 156 mm wafer (or larger)

• Low CAPEX / high throughput

• High efficiency potential

• Double effective Si capacity

One year of US oil imports buys enough solar panels to generate the electricity for all 

Americans to drive electric cars for 30 years.   

Greg HerremaSenior Vice President and President of Analytical Instruments

Thermo Fisher Scientific

The Shape of Things To Come: Massachusetts 2020

Thermo Fisher Scientific Company Overview

Greg HerremaPresident, Analytical InstrumentsJune 18, 2010

27

Thermo Fisher Scientific Company Overview

• $10+ billion in revenues

• 35,000 employees in 40 countries

• 350,000 customers in 150 countries

• #234 on Fortune 500

• Innovative products

• Applications expertise

• Scientific productivity partner

• Thermo Scientific: innovation

• Fisher Scientific: convenience

Leading Brands

The world leader in serving science

Scale

Depth

28

An Increasingly Important Mission

Enabling our customers to make the world…

Healthier Cleaner Safer

29NOTE: Based on 2009 revenues

Attractive Revenue Profile

Complete Portfolio

Attractive End Markets

Unmatched Global Reach

Global leader in products and services for life sciences and healthcare

30

Thermo Fisher Response to Recession

Emerged a StrongerIndustryLeader

2009 Recession:Worst Economy in 20 years

• Returned to top-line revenue growth

• Deployed capital on M&A and stock buybacks

• Continued to expand leading presence in Asia

• Maintained R&D investment; launched successful new products

• Exceeded goals for cost reduction

31

Favorable Macro-Economic Trends

Aging populationMore than 2/3 of revenue from life science and healthcare markets

Growth in emerging marketsLargest footprint in Asia and continuing to expand

Increased concern for consumerproduct safety

World-class portfolio with strength in chemical, elemental and microbiological analysis

Increased environmental regulation Leading technologies in air, water and radiation monitoring

Thermo Fisher Scientific is Well-PositionedMacro Trends

Biopharma consolidationOnly supplier with depth of capabilities that enable customers to achieve merger synergies

32

Thermo Fisher Scientific in Massachusetts

Waltham

Agawam

BeverlyBillerica

Cambridge

Franklin

Milford

WilmingtonWoburn

Worcester

Global Headquarters: WalthamTotal Employees in Massachusetts: 1,400

• Agawam• Research Market Channel

• Beverly• Environmental Instruments

• Billerica• Process Instruments

• Cambridge• Biomarker Research Laboratory

• Franklin• Environmental Instruments

• Scientific Instruments

• Milford• Laboratory Equipment

• Wilmington• Process Instruments

• Woburn• Biosciences

• Worcester• Specialty Diagnostics

33

• 130 hospitals, teaching hospitals and medical centers

Medical

• 430 biotech, pharmaand research product companies

• Center of technology innovation

Life Sciences

Massachusetts: The Perfect Combination

SOURCES: Mass Biotech Council 2010; Mass Board of Registration 2009; College Board 2010;National Center for Educational Statistics, Fall 2010

Academia

• 100 colleges and universities• Research labs

• Nearly 450,000 students

34

Building on Our Industry Leadership

• Leveraging scale and depth

• Industry-leading brands

• Strong financial resources

• Commitment to innovation

• Expanding global presence