Qiagen N.v. · NYSE:QGEN
Qiagen — Q1 2017 Earnings Presentation
40 slides from Qiagen's earnings presentation, Jun 2, 2017
Slide 1: Investor presentation Q2 2017
Investor presentation Q2 2017 Sample to Insight Investor presentation Q2 2017 1
Slide 2: Forward looking and intended use statements
Forward looking and intended use statements Safe Harbor Statement: This presentation contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be forward looking statements within the meaning of Section 27A of the U.S. S
Slide 3: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2017 3
Slide 4: We are experiencing a new age of scientific breakthroughs
WE ARE EXPERIENCING A NEW AGE OF SCIENTIFIC BREAKTHROUGHS We are creating more biological data in 6 months than in all of prior history 1.5B(1) Dramatic scientific advances are enabling breakthroughs in molecular biology (1) Source: Cisco Systems, GenBank and Alliance Bernstein Sample to Insight Inv
Slide 5: But we still have to significantly improve how we address pressing challenges
BUT WE STILL HAVE TO SIGNIFICANTLY IMPROVE HOW WE ADDRESS SOME OF THE WORLD’S MOST PRESSING CHALLENGES How can we How can we How can we How can we further improve achieve scientific improve develop better outcomes for breakthroughs public safety? and safer drugs? patients? even faster? We are still
Slide 6: We help customers gain insights to improve healthcare and advance science
QIAGEN solutions empower molecular testing from Sample to Insight Sample Technologies Assay Technologies Bioinformatics Automation systems BIOLOGICAL SAMPLE TO INSIGHT SOLUTIONS VALUABLE SAMPLE MOLECULAR INSIGHTS We help customers gain insights to improve healthcare and advance science Sample to Ins
Slide 7: World leader in molecular testing solutions that enable valuable insights
QIAGEN at a glance 2016 sales by customer class Leader in molecular testing solutions True hybrid covering continuum from Academia Pharma Applied Molecular Diagnostics Testing Life Sciences to Molecular Diagnostics Core capabilities Consumables ~22% ~19% ~9% ~50% Automation systems Infor
Slide 8: QIAGEN's progress accelerating as U.S. HPV headwinds fade away
QIAGEN sales accelerating into new growth trajectory Create a molecular Significant Portfolio Commercial Sustain growth franchise reorganization transformation acceleration and deliver value Sales excl. U.S. HPV U.S. HPV sales Adj. operating income margin $1.34 bn $1.30 bn $1.28 bn $1.17 bn ~3% ~2%
Slide 9: Disciplined capital allocation
Disciplined capital allocation Reinvest for organic growth Increase returns Targeted M&A / licensing Capture more value from our Commitment to return $300 Continuing our strategy Sample to Insight portfolio million by end of 2017 Novel technologies New products Completion of $245 million
Slide 10: Multiple drivers
+ Maximize sales growth Multiple drivers + Deliver operating leverage Greater + Optimize balance sheet value creation + Strong governance and top talent Adjusted EPS growth = and high returns Committed to higher returns and greater value creation as differentiated leader Sample to Insight Investor p
Slide 11: Summary
Summary Reaccelerating performance after transformation Sustainable sales growth and leverage trajectory Emerging as a stronger, focused, differentiated leader Committed to higher returns and greater value creation Sample to Insight Investor presentation Q2 2017 11
Slide 12: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2017 12
Slide 13: Differentiated portfolio setting new trajectory for growth and value creation
Sample to Insight solutions: Key highlight areas Sample Technologies Assay Technologies Bioinformatics Automation systems BIOLOGICAL SAMPLE TO INSIGHT SOLUTIONS VALUABLE SAMPLE MOLECULAR INSIGHTS QuantiFERON GeneReader Personalized QIAsymphony Differentiated NGS System Healthcare Technologies Differ
Slide 14: QuantiFERON
QuantiFERON Tuberculin skin test (TST) QuantiFERON-TB (QFT) Manual placement, reading, data entry Can be fully automated Affected by BCG vaccine and NTM Highly specific Two patient visits required Results with one patient visit Significant inter-reader variability No inter-reader var
Slide 15: QuantiFERON
QuantiFERON Increasing clinical evidence and value Q1 2017 highlights 1,400 Number of QuantiFERON-TB Winning tenders around the world 1,200 peer-reviewed publications South Korea 1,000 Abu Dhabi Health Services Company (SEHA) 800 600 – Routine healthcare worker screening 400 – Pre-employment s
Slide 16: GeneReader NGS System
GeneReader NGS System Ease of use Reliable results Unique automation Data interpretation QIAcube® GeneRead QIAcube® GeneReaderTM Bioinformatics portfolio 1 2 3 4 5 First complete Predictable Actionable Expertise Flexibility to NGS workflow costs insights and service fit needs The world’s first compl
Slide 17: GeneReader NGS System: BMS-QIAGEN immuno-oncology collaboration
GeneReader NGS System: BMS-QIAGEN immuno-oncology collaboration Patient care continuum Therapy / Diagnosis Therapy Screening Prognosis Progression Surveillance selection monitoring Significant collaboration to improve outcomes Leveraging QIAGEN’s GeneReader NGS System BMS-QIAGEN collaboration for
Slide 18: GeneReader NGS System
GeneReader NGS System GeneReader presence at AMP Global Berlin Q1 2017 highlights High visibility at AMP Global conference: GeneReader reliability Independent customer validation studies Dartmouth-Hitchcock Medical Centre reaffirming system performance 100% concordance with competitor data “
Slide 19: GeneReader NGS System
GeneReader NGS System NGS market by application Clinical research market throughput(1) Share of Large WES / Panels Majority of use is No. of laboratories market panels WGS in the mid to low throughput Research 80% 20% 40% 40% Average Clinical research 20% 70% 20% 10% throughput and diagnostics 0 2
Slide 20: GeneReader NGS System
GeneReader NGS System QIAGEN Target customer requirements Comp. I Comp. T (1) Actionability 100% 100% 70% 80% Minimum Optimum Integration of bioinformatics 100% 70% 80% Third Strength of Knowledge Base, # publications >30k party >1k Actionable variants detected in panel >700 500 600 Analytical perfo
Slide 21: Personalized Healthcare
Personalized Healthcare Selected Pharma collaborations Q1 2017 highlights Portfolio expansion with liquid biopsy-based AR-V7 biomarker in prostate cancer ipsogen JAK2 liquid biopsy test FDA-cleared for important mutation testing in leukemia 2017 catalysts Expansion of pharma master collaborati
Slide 22: QIAsymphony
QIAsymphony Strong expansion in all market segments Q1 2017 highlights Strong Q1 placements lay foundation for achieving 2017 target of >2,000 cumulative placements Continued double-digit CER growth in related consumables Molecular Diagnostics Academia / Pharma Women’s health Sample processi
Slide 23: Differentiated Technologies
Differentiated Technologies Innovation at the cutting edge of research Q1 2017 highlights Innovative product launches including: Liquid biopsy: ~$200 million opportunity Liquid biopsy applications: New manual and EZ1 LB PCR automated QIAamp ccfDNA solutions sample BioX = Microbiome application
Slide 24: Bioinformatics: Acquisition of OmicSoft
Bioinformatics: Acquisition of OmicSoft Enhancing QIAGEN Bioinformatics portfolio Acquisition of OmicSoft Leader in enterprise solutions for large-scale omics data management Curation, standardization and comparative analysis Own data of large-scale NGS and omics datasets mining Adds infrastru
Slide 25: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2017 25
Slide 26: 2016: Quarterly and YTD income statement summary
2016: Quarterly and YTD income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Net sales 298.4 334.4 338.7 366.5 1,338.0 Net sales (CER) 305.6 338.1 341.8 375.6 1,361.1 Gross profit 184.8 210.8 221.1 228.0 844.7 Gross profit ma
Slide 27: 2016: Balance sheet and cash flow
2016: Balance sheet and cash flow Balance sheet data (As of December 31) 2016 2015 Leverage ratio(1) Group liquidity (In $ millions) 532 421 3.3 Net debt (In $ millions) 537 642 Shareholder equity ratio 61% 61% Leverage ratio(1) 1.2x 1.6x 2.2 1.6 1.3 1.2 Cash flow 1.1 (In $ millions) 0.9 0.9 2016 20
Slide 28: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2017 28
Slide 29: Q1 2017: Overview
Q1 2017: Overview 1 Solid Q1 2017 performance Key results Change $ / +6% CER adj. net sales growth vs. 4-5% CER outlook Q1 2017 Q1 2016(1) (CER) In $ millions (Except EPS) $0.22 adjusted EPS excl. restructuring charge vs. Net sales 307.7 298.4 +3% (+5%) $0.21-0.22 CER outlook excl. charge Adjust
Slide 30: Q1 2017: Product type and customer classes
Q1 2017: Product type and customer classes Q1 2017 net sales: $307.7 million Q1 2017 adjusted net sales: $308.3 million Adj. sales % CER % of (In $ m) change sales Consumables and related revenues $274 +7% 89% Instruments $35 -3% 11% Molecular Diagnostics(1) $142 +3% 46% Of which: U.S. HPV test sale
Slide 31: Q1 2017: Geographic regions
Q1 2017: Geographic regions Q1 2017 net sales: $307.7 million Q1 2017 adjusted net sales: $308.3 million Adj. sales % CER % of (In $ m) change sales Americas(1) $143 +3% 46% Europe / Middle East / Africa $101 +7% 33% Asia-Pacific / Japan $64 +10% 21% Americas Europe / Middle East / Africa Asia-Pacif
Slide 32: Q1 2017: Reconciliation of adjusted results
Q1 2017: Reconciliation of adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS(1) First quarter 2017 Reported results 307.7 195.8 23.8 16.5 1.2 NM 17.7 0.08 Adjustments Business integration and acqui
Slide 33: Q1 2017: Balance sheet and cash flow
Q1 2017: Balance sheet and cash flow Balance sheet data (As of March 31) 2017 2016 Leverage ratio(1) Group liquidity (In $ millions) 273 447 3.3 Net debt (In $ millions) 800 616 Shareholder equity ratio 60% 64% Leverage ratio(1) 1.7x 1.5x 2.2 1.7 1.6 1.3 1.2 Cash flow 1.1 (In $ millions) 0.9 0.9 201
Slide 34: Q1 2017: Full-year 2017 targets
Q1 2017: Full-year 2017 targets As of May 2, 2017 2017: Adjusted net sales guidance 2017: Adjusted diluted EPS guidance (At CER to comparative year) (In $ per share, at CER to comparative year) ~+6-7% CER ~$1.25-1.27 CER Exiqon +6% CER acquisition $1.11 (June 2016) ~1 p.p. Exiqon and ~2 p.p. OmicSof
Slide 35: Q2 and full-year 2017: Outlook and assumptions
Q2 and full-year 2017: Outlook and assumptions As of May 2, 2017 Q2 2017 outlook Full-year 2017 outlook Adjusted net sales(1) ~+5-6% CER ~+6-7% CER ~$0.28-0.29 CER ~$1.25-1.27 CER Adjusted diluted EPS excluding restructuring charge(2) (Prior year: $0.24) (Prior year: $1.11) After-tax restructuring c
Slide 36: 2017-2020: Key assumptions
2017-2020: Key assumptions Key assumptions: 2017-2020 (As of April 30, 2017) 2017 2018-2020 Capital expenditure (PP&E) ~5% of sales ~4-5% of sales Capital expenditure (Intangibles) ~2-3% of sales ~2-3% of sales (Excluding acquired IP) Depreciation and amortization ~7% of sales ~6-7% of sales (Exclud
Slide 37: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2017 37
Slide 38: Employees as of March 31, 2017
Employees as of March 31, 2017 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q1 2017 Q1 2016 Production 249 625 111 985 996 -1% R&D 217 693 42 952 1,023 -7% Sales 607 693 565 1,865 1,813 3% Marketing 62 155 71 288 322 -11% Admin 93 314 64 471 465 1% Total 1,228
Slide 39: Global reach into the most attractive geographic markets
Global reach into the most attractive geographic markets Aarhus Manchester Hilden Venlo Redwood Waltham Germantown City Shanghai Shenzhen Hilden, Germany Europe Germantown, Maryland Americas Shanghai Asia-Pacific Sample to Insight Investor presentation Q2 2017 39
Slide 40: Your contacts
Your contacts Download the QIAGEN IR App John Gilardi Dr. Sarah Fakih Alexandra Koenig Vice President Corporate Associate Director Coordinator Communications and IR Investor Relations Investor Relations Phone: +49 2103 29 11711 Phone: +49 2103 29 11457 Phone: +49 2103 29 11709 or +1 240 686 2222 Mob