Qiagen N.V. · NYSE:QGEN
Qiagen — Q2 2013 Earnings Presentation
31 slides from Qiagen's earnings presentation, Jul 31, 2013
Slide 1: Second quarter 2013 results
Sample & Assay Technologies Second quarter 2013 results July 31, 2013
Slide 2: Forward looking statements
Sample & Assay Technologies Forward looking statements Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities
Slide 3: Agenda
Sample & Assay Technologies Agenda Introduction Overview Peer Schatz, CEO Financial results Roland Sackers, CFO Strategy update Peer Schatz, CEO 2013 outlook Roland Sackers, CFO Summary Peer Schatz, CEO Q&A session Second quarter 2013 results 3
Slide 4: Q2 and H1 2013: Overview
Sample & Assay Technologies Q2 and H1 2013: Overview Financial results In $ millions Change Change (Except EPS) Q2 2013 Q2 2012 $ (CER) H1 2013 H1 2012 $ (CER) +3% +3% Adjusted net sales(1) 316.4 307.2 620.0 603.6 (+3% CER) (+3% CER) Adjusted operating income 83.4 86.4 -3% 161.8 166.7 -3% Adjusted d
Slide 5: Q2 2013: Customer classes
Sample & Assay Technologies Q2 2013: Customer classes Q2 2013 adjusted sales: $316.4 million Sustained QuantiFERON-TB >20% CER growth momentum MDx ~35% of sales +16% CER Higher PHC consumables, lower project milestone payments growth drivers Profiling sales supported by QIAsymphony consumables
Slide 6: Closing efficiency project to drive QIAGEN transformation
Sample & Assay Technologies Closing efficiency project to drive QIAGEN transformation Improving efficiency while freeing up resources for reinvestment 5 excellence programs Streamlined and delayered organization Organizational Formed MDx and Life Sciences Business Areas Focused R&D portfolio o
Slide 7: Q2 2013: Key results
Sample & Assay Technologies Q2 2013: Key results In $ millions Change Q2 2013 Q2 2012 (Except EPS) $ (CER) +3% Adjusted net sales 316.4 307.2 All regions deliver sales growth (+3% CER) Adjusted gross profit 223.4 219.1 +2% Adjusted gross profit margin 71% 71% Driving assay menu expansion, Adjust
Slide 8: Q2 2013: Geographic results
Sample & Assay Technologies Q2 2013: Geographic results Europe / Middle East / Africa 32% of adjusted net sales / +2% CER • QIAsymphony Americas • MDx: Personalized Healthcare • Turkey, Nordic, UK 48% of adjusted net sales / +2% CER • Academia and Pharma • MDx: QuantiFERON-TB • Southern Europe • Bra
Slide 9: Q2 2013: Consumables and instruments results
Sample & Assay Technologies Q2 2013: Consumables and instruments results Consumables and related revenues Instruments Q2 2013 adjusted sales: $316.4 million Solid growth in Molecular ~87% ~13% Higher Pharma sales, but decline +5% CER -8% CER in Applied Testing Diagnostics and Applied Testing U
Slide 10: H1 2013: Key results
Sample & Assay Technologies H1 2013: Key results In $ millions Change H1 2013 H1 2012 (Except EPS) $ (CER) +3% Molecular Diagnostics leads performance Adjusted net sales 620.0 603.6 (+3% CER) Adjusted gross profit 442.6 428.9 +3% Adjusted gross profit margin 71% 71% In line with full-year 2013 f
Slide 11: H1 2013: Balance sheet and free cash flow
Sample & Assay Technologies H1 2013: Balance sheet and free cash flow As of June 30 2013 2012 Leverage ratio: Net debt / EBITDA(1) Group liquidity (In $ millions) 373 266 3.5 3.3 Net debt (In $ millions) 491 416 3.0 Shareholder equity ratio 65% 68% 2.5 2.2 Net debt / adjusted EBITDA ratio 1.1 1.0 2.
Slide 12: Strengthening Sample & Assay Technology leadership
Sample & Assay Technologies Strengthening Sample & Assay Technology leadership VALUABLE BIOLOGICAL MOLECULAR SAMPLE INFORMATION Sample Technologies Assay Technologies QuantiNova PCR EGFR companion diagnostic Ingenuity bioinformatics Exosomes biofluids GeneReader NGS workflow New products to help cus
Slide 13: Access to biofluids with Exosome Dx collaboration
Sample & Assay Technologies Access to biofluids with Exosome Dx collaboration VALUABLE BIOLOGICAL SAMPLE Sample Technologies Assay Technologies MOLECULAR INFORMATION Tissue biopsies Analytes Detection technology Tissue applications QIAGEN FFPE solutions Targeted, specific and FFPE PAXgene sens
Slide 14: NGS initiative progressing, Ingenuity integration underway
Sample & Assay Technologies NGS initiative progressing, Ingenuity integration underway Fully integrated GeneReader workflow BIOLOGICAL VALUABLE SAMPLE MOLECULAR INFORMATION Combining strengths of QIAGEN and Ingenuity Phased release plan for GeneReader benchtop NGS workflow on track Initiated ear
Slide 15: Ingenuity: Key role in NCI-60 analysis and dissemination
Sample & Assay Technologies Ingenuity: Key role in NCI-60 analysis and dissemination July 2013: Largest data set of cancer-related genetic variations >9,000 publications already citing Ingenuity 10,000 8,000 6,000 4,000 2,000 To enable this, the researchers are making these 0 2007 2008 2009 2010 201
Slide 16: Biological content driving Personalized Healthcare
Sample & Assay Technologies Biological content driving Personalized Healthcare Applications for Rotor-Gene Q, Pyrosequencing and GeneReader Broadest portfolio of biomarkers and gene panels Biomarkers Product line Disease RUO CE FDA EGFR therascreen mCRC X X EGFR assay competitive advantages EGFR t
Slide 17: Q3 and full-year 2013: Outlook and assumptions
Sample & Assay Technologies Q3 and full-year 2013: Outlook and assumptions As of July 30, 2013 Q3 2013 FY 2013 outlook outlook Adjusted net sales(1) ~+6% CER ~+5% CER Adjusted diluted EPS(2) ~$0.27 ~$1.13 Share-based compensation (In $ millions) ~8 ~33-35 Amortization of acquired intellectual proper
Slide 18: Summary
Sample & Assay Technologies Summary Progress toward accelerating innovation and growth Achieved Q2 2013 targets in a challenging environment Adjusted net sales and EPS growth Making progress on strategic initiatives FDA approval of EGFR kit adds to Personalized Healthcare NGS initiative mo
Slide 19: Appendix
Sample & Assay Technologies CHANGE PHOTO – NO PYROMARK PHOTOS Appendix
Slide 20: Q2 2013 Summary income statement
Sample & Assay Technologies Q2 2013 Summary income statement In $ millions Q2 2013 Q2 2012 Change (Unless indicated) Net sales 315.2 307.2 3% Adjusted net sales 316.4 307.2 3% Adjusted net sales (CER) 317.2 307.2 3% Gross profit 168.9 203.0 -17% Adjusted gross profit 223.4 219.1 2% Operating (loss)
Slide 21: H1 2013 Summary income statement
Sample & Assay Technologies H1 2013 Summary income statement In $ millions H1 2013 H1 2012 Change (Unless indicated) Net sales 618.8 603.6 3% Adjusted net sales 620.0 603.6 3% Adjusted net sales (CER) 623.6 603.6 3% Gross profit 368.9 392.3 -6% Adjusted gross profit 442.6 428.9 3% Operating (loss) i
Slide 22: Q2 2013 Reconciliation of reported to adjusted figures
Sample & Assay Technologies Q2 2013 Reconciliation of reported to adjusted figures Operating Pretax Net In $ millions Net Gross (loss) (loss) Income Tax (loss) Diluted (Except EPS) sales profit income income tax rate income EPS(1) Reported results 315.2 168.9 -34.2 -46.7 -5.1 -11% -51.8 -0.22 Adjust
Slide 23: H1 2013 Reconciliation of reported to adjusted figures
Sample & Assay Technologies H1 2013 Reconciliation of reported to adjusted figures Operating Pretax Net In $ millions Net Gross (loss) (loss) Income Tax (loss) Diluted (Except EPS) sales profit income income tax rate income EPS(1) Reported results 618.8 368.9 -5.1 -24.0 -7.8 -33% -31.8 -0.14 Adjustm
Slide 24: Currency impact
Sample & Assay Technologies Currency impact Adjusted net sales at Adjusted net sales change Q2 2013 In $ millions constant exchange rates due to currency adjusted net sales (CER) (In $ millions) Net sales in USD 133.6 133.6 0.0 Net sales in EUR 82.1 80.5 1.6 Net sales in GBP 15.7 16.1 -0.4 Net sales
Slide 25: QIAsymphony RGQ: New era of automation
Sample & Assay Technologies QIAsymphony RGQ: New era of automation Most versatile molecular testing system QIAsymphony family Sample Result QIAsymphony SP QIAsymphony AS Rotor-Gene Q Sample input module Eluate input Detection Analysis Automates purification Automates assay setup Second q
Slide 26: Developing several new diagnostic assays
Sample & Assay Technologies Developing several new diagnostic assays Selected tests in current portfolio Selected potential submissions HIV HAV HEV Blood Borne Virus HBV Parvo B19 Others HCV KRAS JAK2 WT1 IDH1/2 NRAS T315I Personalized EGFR BCR-ABL PI3K JAK2 Others
Slide 27: On track for first customer group placements in 2013
Sample & Assay Technologies On track for first customer group placements in 2013 NGS workflow Sample & Assay Technologies Primary Data sample to DNA / RNA Target Library NGS run alignment / purified preprocessing enrichment preparation analysis DNA / RNA Gene panels Extreme Random access Leading inn
Slide 28: Ingenuity: Designed to unlock value of biological info
Sample & Assay Technologies Ingenuity: Designed to unlock value of biological info Content Applications Actionable acquisition results Expert- Pathway extracted analysis content Pathway Gene expression and systems analysis models Algorithms to Public standardize databases data NGS analysis interoper
Slide 29: Employees as of June 30, 2013
Sample & Assay Technologies Employees as of June 30, 2013 Asia Pacific / Japan and Total Total Americas Europe Rest of World Q2 2013 Q1 2013 Change Production 211 644 88 943 942 0% R&D 211 515 52 778 721 8% Sales 508 583 483 1,574 1,581 0% Marketing 83 178 61 322 299 8% Admin 114 261 62 437 456 -4%
Slide 30: List of abbreviations
Sample & Assay Technologies List of abbreviations Adj Adjusted EGM Emerging Growth Markets Mg/Ms Mycoplasma Mg/Ms AIV Avian influenza virus EPS Earnings per Share MDx Molecular Diagnostics ALK Anaplastic Lymphoma Kinase EU European Union MN1 meningioma 1 AML1 Acute Lymphoblastic Leukaemia ESBL Exten
Slide 31: Your contacts
Sample & Assay Technologies Your contacts E-mail: ir@qiagen.com John Gilardi Angela Schmidt Vice President Project Coordinator Corporate Communications Investor Relations Tel: +49 2103 29 11711 Tel: +49 2103 29 11709 or +1 240 686 2222 Mobile: +49 152 018 11709 Mobile: +49 152 018 11711 E-mail: ange