Slide 1: Harvard Bioscience – Tools to Accelerate Drug Discovery
HARVARD Balt@s5.GslsEsNuGac TOOLS TO ACCELERATE DRUG DISCOVERY Market Leader in Established Markets Technology Leader in Emerging Markets NASDAQ HBIO
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forwarc-boking statements within the meaning ofthe federal secures laws. You can ilenty these statements by our use ofthe words “guidance,” ‘expects, ‘plans,’ ‘estimates,’ ‘projects, ‘antisipates, ‘intends, “believes’ and similar expressions that do r
Slide 3: Use of Non-GAAP Information
Use of Non-GAAP Information In this presentation, we have included non-GAAP financial information including adjusted operating income and adjusted net income per diluted share. We believe that this non-GAAP financial information provides investors with an enhanced understanding of the underlying ope
Slide 4: Investment Highlights
Investment Highlights * Tools to Accelerate Drug Discovery - two business segments ° Apparatus and Instrumentation Business Segment - 70% of 2004 revenue - Market leader in established markets - Good growth, great profitability * Capital Equipment Business Segment - 30% of 2004 revenue - Technology
Slide 5: Overview
Overview ¢ Financial Performance Overview * Instrumentation and Apparatus Business Segment * Capital Equipment Business Segment * Management Team * Commitment to Stockholder Value HARVARD
Slide 6: Financial Performance Overview
Financial Performance Overview Harvard Bioscience - Consolidated HARVARD BIOSCIENCE Tons Aen rg or
Slide 7: Financial Overview — Strong Revenue Growth
Financial Overview — Strong Revenue Growth $1000 Revenue S228 force) og 8 BS 8 ae ee & § Be 3 é IPO $308 $26.2 sus $124 ll 1999 2000 2001 2002 2003 2004 HARVARD BIOSCIENCE Teale aerorb ou aioe:
Slide 8: Financial Overview — Strong Profitability
Financial Overview — Strong Profitability Non-GAAP Adjusted sno | Operating Income (ornitions) 1997 1998 1999 2000 2001 2002 2003 2004 HARVARD Note: See reconsilation of US GAAP Operating Income te Non-GAAP Adjusted Operating Income in ApperdlixBB 1O SCIEN CE Teale aervenb ou orecets
Slide 9: Financial Overview — Strong Diluted EPS Growth
Financial Overview — Strong Diluted EPS Growth $0.30 Non-GAAP Adjusted $0.26 so2s | Diluted EPS $0.20 $0.20 $0.17 $0.17 $0.16 $0.15 $0.13 $0.10 $0.10 $0.07 sa0s 1 | ‘ 1997 1998 1999 2000 2001 2002 2003 2004 HARVARD Note: See reconeitaton of US GAAP Diluted Earrings per share & Non-GAAP Adjusted Diut
Slide 10: What Happened In 2004 and Q1 2005?
What Happened In 2004 and Q1 2005? * Capital Equipment business (Genomic Solutions product lines) disappointed in Q1 2004 - Significant revenue and GM shortfall from expectations * Apparatus and Instrumentation business did well * Genomic Solutions Restructured in Q2 04 - Returned to (adjusted) prof
Slide 11: Financial Overview — Corporate Expenses
Financial Overview — Corporate Expenses 45 42m 28 #24 ? gz ism : 1 | ° 2000 2001 2002 2003 2004 Note: We do not allocate corporate expenses to business segments. HARVARD Prior te 2000, the year ofour IPO, all corporate expenses are inched in the Apparatus and Instrumentation feaults. Corporate expen
Slide 12: HBIO — Market and Technology Leadership
HBIO — Market and Technology Leadership * Represents 70% of 04 Revenue * Represents 30% of 04 Revenue * Established products, brands * Cutting edge technologies and distribution channels * Often over $100,000 price * Typically under $10,000 price * Field sales/service force * Market share leader or
Slide 13: HBIO — Companies and Brand Names
HBIO — Companies and Brand Names Apparatus and Instrumentation Business Segment Capital Equipment Business Segment HARVARD APPARATUS wat ase) “| WARNER BY here iochrom @ASYS == GENOMIC == SOLUTIONS® - UNION BIOMETRICA HARVARD
Slide 14: Business Segment
Apparatus and Instrumentation Business Segment HARVARD BIOSCIENCE Tons Aen rg or
Slide 15: Organic growth & tuck-under acquisitions have driven revenues
Apparatus and Instrumentation Organic growth & tuck-under acquisitions have driven revenues $700 Revenue $48. $600 $52.0 $500 $47.4 3 S400 $84 & = $208 £ $00 262 $200 S15 $124 $109 | 0 tor 1998 1989-2000» 2001 20m 2032004 Acquisions —» [ a ec Bell || 2 i HARVARD BIOSCIENCE Teale kervpnb ou oc
Slide 16: Non-GAAP Adjusted Operating Income
Apparatus and Instrumentation 160 Non-GAAP Adjusted . $14.4 are Operating Income {in millions) 1997 1998 1999-2000 2001 2002 2003-2004 Good growth and.... HARVARD Note: See reconciliation of US GAAP operating income to non-GAAP adjusted operating income in Appendix BIOSCIENCE Teale aervrnb ou ovecet
Slide 17: Non-GAAP Adjusted Operating Income as a % of Revenue
Apparatus and Instrumentation Non-GAAP Adjusted Operating Income as a % of Revenue 30.0% 24.9% 25.0% 28% 250% re 22h 195% 200% 1 183% 18.20% 150% 100% 50% 00% 1997 1998 ©1997-2000» 2001 200220082008 .....gteat profitability HARVARD BIOSCIENCE Teale kervpnb ou oc
Slide 18: Market Leader in Established Markets
Apparatus and Instrumentation Market Leader in Established Markets Market Leader (#1 Market Share) * Syringe pumps * Ventilators ¢ Isolated Organ Systems * Amino Acid Analyzers Strong Market Position (#2 or #3 Market Share) ¢ Electroporation * Cell/Tissue physiology ¢ 1-D electrophoresis apparatus °
Slide 19: Established in 1901 at Harvard Medical School
Apparatus and Instrumentation Established in 1901 at Harvard Medical School The HARVARD. PHYSIOLOGICAL APPARATUS The name Harvard is used undler a license agreement HARVARD between Harvard Bioscience and Harvard University ROG CUERICE Toole aero erg coors
Slide 20: Established Distribution Channels
Apparatus and Instrumentation Established Distribution Channels Catalog and Website - Harvard Apparatus Catalog - Over 100 years, 1,000 pages, 10,000 items ~ Hoefer Catalog (electrophoresis) - Established Q2 2004 Major Distributors - GE Healthcare (formerly Amersham Bioscience) - Over 20 year relati
Slide 21: Established Customer Base
Apparatus and Instrumentation Established Customer Base * 35/35 Top Pharmaceutical Companies ¢ 50/50 Top Research Universities ¢ 50,000 Qualified End-Users in Our Database merck astrazeneca” Pfizer 425 Bristol-Myers Squibb Company BA Y L ie) R HARVARD BIOSCIEN
Slide 22: Strategy
Apparatus and Instrumentation - Strategy © Major growth to be driven by tuck-under acquisitions ¢ Organic growth in mature markets driven by expanding distribution channels and product offerings ¢ Continue to offer a broad range of specialized, relatively inexpensive, scientific instruments and appa
Slide 23: Growth Model
Apparatus and Instrumentation — Growth Model Revenue Growth Projected Organic 4-6% Tuck-under acquisitions* 10-15% Total revenue growth 14-21% Operating Income Growth 15-20% Actual 1999 to 2004 revenue growth was 19.9% annually and operating income growth was 24.3% annually * Note: We believe we can
Slide 24: Capital Equipment Business Segment
Capital Equipment Business Segment HARVARD BIOSCIENCE Teale aerorb ou aioe:
Slide 25: Financial Overview — Capital Equipment Business
Financial Overview — Capital Equipment Business Gamitins $40 $35 $30 $25 $20 Revenue $35.2 $10.3 $27.8 2002 2003 2004 | oon HARVARD BIOSCIENCE
Slide 26: Financial Overview — Capital Equipment Business
Financial Overview — Capital Equipment Business sas , Non-GAAP adjusted sao | Operating income $2.8 $25 $2.0 $15 $1.0 Gn mitiore) 2003 $(05) nes} $(1.0) $(15) $12) $@.0) Great potential, but volatile. ot Restructuring has greatly reduced risk to stockholders HARVARD Note: See reconciliation of US GA
Slide 27: Capital Equipment: Leading Technologies in Emerging Markets
Capital Equipment Leading Technologies in Emerging Markets COPAS Flow Cytometer * Automated tissue/organism research MIAS Automated Microscope * Unlabeled cell/tissue/organism imaging Genomic Solutions Microarraying * DNA/ Protein Microarraying, including PlateArrays Cartesian Nanolitre Dispensers *
Slide 28: Capital Equipment: Potential For Significant Long-Term Growth
Capital Equipment Potential For Significant Long-Term Growth COPAS for stem cell R&D Human stem cell derived tissue may eventually replace transformed (cancerous) human cell lines for HTS COPAS for islet transplantation COPAS can automate islet QC prior to transplantation for curing Type 1 diabetes.
Slide 29: Capital Equipment: Intellectual Property
Capital Equipment Intellectual Property 24 Issued, 11 Pending Patents ¢ Key COPAS patents on flow sorting ¢ Key MIAS patents/exclusive licenses on autofocusing and image processing ¢ Key patents on nanolitre dispensing HARVARD Ge CIENGE
Slide 30: Capital Equipment — Strategy
Capital Equipment — Strategy ¢ Revenue growth from breakthrough applications - Clinical islet transplantation - Automated stem cell tissue research - Unlabeled live cell imaging - PlateArrays for protein and DNA based diagnostics * We believe we can get the Capital Equipment business to 10- 15% adju
Slide 31: Experienced Management Team
Experienced Management Team °60+ years of Relevant Experience * Many Licensing Deals and New Product Launches ° 20 Acquisitions at HBIO Title Background Chane Graziano CEO Waters, ATI Orion David Green President Monitor, Unilever Sue Luscinski coo Harvard Bioscience Bryce Chicoyne CFO Apogent, E&Y H
Slide 32: Commitment to Stockholder Value
Commitment to Stockholder Value * Management team collectively holds approximately 20% of shares * Owns an additional approximately 5% in options most at $7-8 per share ° We believe our tuck-under growth strategy can be financed with current cash available, cash flow from operations and proceeds fro
Slide 33: Investment Highlights
Investment Highlights * Tools to Accelerate Drug Discovery - two business segments ° Apparatus and Instrumentation Business Segment - 70% of 2004 revenue - Market leader in established markets - Good growth, great profitability * Capital Equipment Business Segment - 30% of 2004 revenue - Technology
Slide 34: Harvard Bioscience – Tools to Accelerate Drug Discovery
HARVARD Balt@s5.GslsEsNuGac TOOLS TO ACCELERATE DRUG DISCOVERY Market Leader in Established Markets Technology Leader in Emerging Markets NASDAQ HBIO
Slide 35: Appendix A
Appendix A uma, Mart exces Sabie ‘Pacenction GAA Barner er el Shae toa CAAT Aue ands Yr DBs Share taabted Yeartadel Dacre 2. ee Te Us GAP ene pr Atte are $ Os Os Gas IE Is om s ON OOF Hemuamrewiiewceteiedepace : . : bm am Ssdcapeumoper oy om = 0mm nn Spurred ed debt apae ola dautntind patel nd voreh
Slide 36: Searchable text section of graphics shown above
Searchable text section of graphics shown above [ LOG O] TOOLS TO ACCELERATE DRUG DISCOVERY Market Leader in Established Markets Technology Leader in Emerging Markets NASDAQ HBIO Copyright © Harvard Bioscience 2005 Saf e Harbor Statement This presentation contains and our conference call may contain