On this page of StockholderLetter.com we present the 4/7/2023 shareholder letter from THERMO FISHER SCIENTIFIC INC. — ticker symbol TMO. Reading current and past TMO letters to shareholders can bring important insights into the investment thesis.

 •  4/7/2023 Letter Continued (Full PDF)
 •  4/9/2024 TMO Stockholder Letter
 •  4/8/2025 TMO Stockholder Letter
 •  More "Biotechnology" Category Stockholder Letters
 •  TMO Benford's Law Stock Score = 94

TMO 4/7/2023 Shareholder/Stockholder Letter Transcript:

Building a
brighter
future
Annual Report 2022
Our Mission is to enable our customers to make the world healthier, cleaner and safer

Our Mission is to enable
our customers to make the world
healthier, cleaner and safer.
Complementary Segments
10%
Specialty Diagnostics
14%
47%
Analytical Instruments
$44.92B
Revenue
29%
Life Sciences Solutions
Laboratory Products
& Biopharma Services

To our
shareholders,
customers and
colleagues
As I reflect on 2022, I am proud of what we achieved.
Our team   s incredible dedication to our customers
and our Mission enabled us to successfully navigate a
dynamic environment, exceed our goals and deliver value
for all of our stakeholders. I would like to thank our more
than 125,000 colleagues, whose passion for enabling our
customers to make the world healthier, cleaner and safer
fuels our success. And thank you to our customers and
shareholders for your continued confidence in us as a
partner in building a brighter future for all.
We measure our success in a number of ways     not only
by our financial results, but also by being the strongest
partner for our customers, by providing an excellent work
experience for our colleagues, by creating value for our
shareholders and by making a positive impact on society.
By all of these measures, it was another exceptional year
for Thermo Fisher Scientific.
Our continued success is propelled by our proven
growth strategy, which consists of three pillars:

Developing high-impact, innovative new products

Leveraging our scale in high-growth and emerging
markets

Delivering a unique value proposition to our customers
We continued to execute this strategy during 2022,
and the investments we   ve made are driving growth
and generating strong returns. I   ll review our progress
within the three pillars.
Commitment to high-impact innovation
Beginning with the first pillar, our focus on highimpact innovation enables our customers to address
some of the world   s greatest challenges, and in
2022, we invested $1.5 billion in R&D to deliver new
Outstanding financial results
Starting with our financials, we continued our
long track record of outstanding performance.
In 2022, we grew our revenue by 15 percent to
$44.92 billion, delivered strong earnings results
consisting of GAAP diluted earnings per share (EPS)
of $17.63 and adjusted EPS  * of $23.24, and we
generated very strong free cash flow  * of $6.94 billion.
We also returned significant capital to our
shareholders through $3.5 billion of stock
buybacks and dividends.
*   Adjusted EPS and free cash    ow are non-GAAP    nancial measures. For a
reconciliation of these non-GAAP measures to comparable GAAP measures,
see pages 6 and 7 of this annual report.
Annual Report 2022
thermofisher.com
Marc N. Casper
Chairman, President and CEO
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Strong Track Record of
Performance
technologies across our businesses that are helping
our customers achieve their goals. There are so
many great examples from the year, and I   ll highlight
just a few.
Revenue
(In billions)
$44.92
$24.36
2018
2019
2020
2021
2022
In chromatography and mass spectrometry, we
extended our industry-leading Thermo Scientific
Orbitrap portfolio, launching the Orbitrap Ascend
Tribrid mass spectrometer to advance proteomics,
metabolomics and cancer biomarker research. We
also launched the Thermo Scientific TRACE 1600
Series Gas Chromatograph to increase productivity
in analytical testing for food, environmental,
industrial and pharmaceutical applications. In
electron microscopy, we launched the Thermo
Scientific Glacios 2 Cryo-TEM (transmission electron
microscope) to help our customers accelerate
structure-based drug discovery for debilitating
disorders such as Alzheimer   s, Parkinson   s and
Huntington   s diseases, as well as research for cancer
and gene mutations. In bioproduction, we launched
the Gibco CTS DynaCellect Magnetic Separation
System to support cell and gene therapy programs.
It was truly a spectacular year of innovation, and we
have an exciting pipeline of new products that will be
launched in 2023 and beyond.
Leveraging our scale
Earnings per share
(In dollars)
$23.24
$17.63
GAAP EPS
Adjusted EPS*
To support customers in China and the Asia-Pacific
region, we opened a new biologics manufacturing
facility in Hangzhou, China, which provides
integrated clinical and commercial drug substance
and drug product capabilities. We also opened a
new Bioprocess Supply Center in Incheon, South
Korea, to provide customers with key materials for
production of their biopharmaceuticals, while also
expanding our clinical trial services there.
$11.12
$7.24
2018
The second pillar of our growth strategy is leveraging
our scale in high-growth and emerging markets to
create a differentiated experience for our customers.
During the year, we continued to strengthen our
capabilities serving these markets.
2019
2020
2021
2022
Our scale and expanding capabilities in these
regions will create growth opportunities for us well
into the future.
* Adjusted EPS is a non-GAAP    nancial measure. For a reconciliation of this
non-GAAP measure to the comparable GAAP measure, see pages 6 and 7
of this annual report.
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Annual Report 2022
thermofisher.com

Creating value for our customers
Our third pillar is delivering a unique value proposition
for our customers, and we continue to strengthen our
capabilities to serve them.
During 2022, we executed on the accelerated
investments we   ve made over the last three years,
bringing new capacity online for pharma services,
bioproduction and clinical research services.
In pharma services, we opened a manufacturing
facility in Plainville, Massachusetts, for the
development, testing and production of viral vectors
used in cell and gene therapies.
In bioproduction, we brought new capacity online in
Lebanon, Tennessee, and Millersburg, Pennsylvania,
for single-use technologies used in the production of
biologic drugs. We added cell-culture manufacturing
capacity in Grand Island, New York, and opened a
facility in Chelmsford, Massachusetts, where we   ll
make resin beads used in the production of vaccines
and breakthrough treatments for rheumatoid arthritis,
multiple sclerosis, asthma and other diseases.
We also integrated new capabilities that we   ve
added through M&A, including recombinant proteins
to complement our biosciences offering from the
acquisition of PeproTech, which we completed at the
close of 2021.
Revenue Pro   le
12%
Industrial & Applied
13%
Academic &
Government
Markets
55%
Pharma & Biotech
20%
Diagnostics &
Healthcare
3%
Rest of World
18%
Asia-Paci   c
Regions
55%
North America
24%
Europe
18%
Instruments,
Equipment & Software
Products
46%
Consumables
36%
Services
Healthier
Advancing promising new drugs
Our acquisition of leading clinical research organization PPD,
Inc. in 2021 has enabled us to partner with pharma, biotech
and government customers in new and exciting ways     helping
them to move a scientific idea to an approved medicine
quickly, reliably and cost effectively. One way we do this is by
helping our customers manage the vast amount of information
from clinical trials so the health outcomes and efficacy of
a drug candidate can be understood     a key challenge in
drug development. In fact, the National Cancer Institute has
chosen us to provide support services and digital solutions for
collection of electronic patient-reported outcomes and health
data for oncology and hematology studies. Ultimately, this work
will help to bring life-changing therapies to patients.
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 4/7/2023 Letter Continued (Full PDF)