© 2009 Northern Trust Corporation northerntrust.com

FALL FOCUS

2009

INVESTMENT CONFERENCE

Michael DruckerSenior Equity Analyst

Healthcare SectorHealthcare Services, Medical Devices & Hospital Supplies

2 2009 Fall FOCUS Investment Conference

HealthcarePerformance

Currency headwind Concerns on sustainability

of pricing Hospital capital freeze Obamacare

Performance Review – Healthcare Equipment

-50.0%

-45.0%

-40.0%

-35.0%

-30.0%

-25.0%

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-15.0%

-10.0%

-5.0%

0.0%

Sep

-08

Oct

-08

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-08

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09

Feb-

09

Mar

-09

Apr

-09

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-09

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9

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Inde

xed

Tota

l Ret

urn

S&P 500 Healthcare Equipment

3 2009 Fall FOCUS Investment Conference

HealthcarePreferred Stocks

Covidien (COV, 1/B)

McKesson (MCK, 1/B)

Healthcare Services, Medical Devices & Hospital Supplies

4 2009 Fall FOCUS Investment Conference

HealthcarePreferred Stocks

Spin-off From Tyco Incentivized Management Portfolio Restructuring

Sell slower growth, low ROIC businesses to add faster growth, high ROIC businesses

Prefer tuck-in acquisitions, but will return excess capital to shareholders

Leverage Infrastructure Investments Capital Deployment Opportunity

Covidien (COV, 1/B)

5 2009 Fall FOCUS Investment Conference

HealthcarePreferred Stocks

Leader in Pharmaceutical Distribution and Healthcare IT (HCIT)

Pharmaceutical Distribution stable with re-signing of CVS contract (15% of revenue)

HCIT upside from stimulusUndervalued asset within McKesson20% of operating income$21 billion will be paid to doctors / hospitals to

upgrade to electronic medical records (EMR)

McKesson (MCK, 1/B)

© 2009 Northern Trust Corporation northerntrust.com

FALL FOCUS

2009

INVESTMENT CONFERENCE

Questions for Healthcare?

© 2009 Northern Trust Corporation northerntrust.com

FALL FOCUS

2009

INVESTMENT CONFERENCE

Michael DruckerSenior Equity Analyst

Thank you.