Positioning Products to Customer in the Target Markets

1. Positioning Products to Customer in the Target Markets

2. Why a New Integrated HPLC System? • 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

3. Advantages of Integrated Analytical and Prep LC System • Analytical • BenefitFeatures • 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 Prep • Versatility 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

4. Environmental Industry • 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

5. Common Industry Applications • 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

6. What Do Varian Offer This Industry? • Performance – sensitivity and precision • Data compliance and features – for regulated methods • Improved reliability and low operating costs – for higher throughput and lower downtime

7. Key Competitors • Waters and Agilent have the largest share of the market worldwide • Shimadzu tends to be strong in Asia

8. Environmental Systems Requirements • Gradient pumps with degasser • Autosampler • Variable UV, diode array and fluorescence detectors • Column oven

9. Common Varian Customers in this Market Segment PPS Water Authority, Korea Institute Sea Research (CNR), Italy Zhuhai Water Supply Co., China Gewasser und Bodenschutz, Switzerland Sierra Environmental Monitoring, USA Ministry of Environment & Energy, Canada Heritage Labs, USA Water Eco Science, Australia Pennsylvania American Water, USA Korea Water Resources Corp., Korea Department of Underground Water, Thailand

10. Chemical and Petrochemical Market • 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

11. Competitors In Petrochemical Industry • Waters are particularly strong • Agilent and Shimadzu • Dionex

12. What Type of LC System is Important? • Isocratic or gradient pumps • Autosampler for improved productivity • UV detectors with RI and ELSD detectors the most relevant detectors

13. Existing Varian Petrochemical Customers Ricca Chemicals, USA Poco Graphite, USA Union of German Cement Factories, Germany Merck, France Ciba Specialty Chemicals, Switzerland Santoku Chemical Industries Co., Japan

14. Agriculture And Food • 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

15. What Type Of LC System Is Important? • Gradient pumps • Autosamplers increase productivity • UV and PDA detectors most common with ELSD and RI also relevant • Common Varian customers: • Agriquem, Spain • Forschungsanstalt Agriculture, Germany • University for Agriculture Science, Germany • Pepsi (JVA), Ireland • Ag Labs (Agmin Chelates), Australia • University of Giessen, Germany

16. Government and Academic • 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

17. What Type of LC System is Important? • Modular systems popular • Grdient pumps degassers • Cooled autosamplers • PDA detectors, Fluorescence and ELSD relevant • Existing Varian customers • MultiLab (State Veterinary Inst.), Liechtenstein • University of Melbourne, Australia • Max Planck Institut Fuer, Germany • State Agency for Standardization & Metrology, Bulgaria • University of West Virginia, USA • University of Bordeaux, France

18. Pharmaceuticals Market • Most visible conventional HPLC and Prep LC market • Small drug companies major users of LC • Common applications include: • impurity analysis, • R and D, • cleaning validation, • dissolution testing • discovery and medicinal chemistry analysis purification

19. Customer Drivers • 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

20. Varian Offerings to This Market • Integrated system • Gradient pump with degasser • Autosampler • PDA with column oven • Galaxie compliance with IMS, IQ/OQ and CFR compliance • Existing Varian customers • Pfizer, USA • GSK, UK • Novartis, Switzerland

21. Summary • 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