Slide 1: Investor presentation Q4 2017
Investor presentation Q4 2017 Sample to Insight Investor presentation Q4 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 Q3 2017 results Appendix Sample to Insight Investor presentation Q4 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 the world's most 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 achieve scientific further improve develop better improve breakthroughs outcomes for and safer drugs? public safety? even faster? patients? 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% ~3%
Slide 9: 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow
2020 ambitions Net sales Adjusted EPS Operating cash flow ~+7-9% CER ≥12% CER CAGR CAGR ~$600 m $1,338 m +6% CER $1.11 $340 m 2016 2020 2016 2020 2016 2020 target target target 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow Sample to Insight Investor presentation Q4 2017 9
Slide 10: Disciplined capital allocation
Disciplined capital allocation Reinvest for organic growth Increase returns Targeted M&A / licensing Capture more value from our Finished commitment to return Continuing our strategy Sample to Insight portfolio $300 million by end-2017 Novel technologies New products $245 million synthet
Slide 11: 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 12: 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 Q4 2017 12
Slide 13: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q3 2017 results Appendix Sample to Insight Investor presentation Q4 2017 13
Slide 14: 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 Next-generation Personalized QIAsymphony Differentiated sequencing Healthcare Technologies D
Slide 15: 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 16: QuantiFERON
QuantiFERON Total Immune Monitoring: Expand QuantiFERON benefits convertible skin test market: 2020 target: >$300 million sales ~65 million Intensify commercial activities in strategic markets tests annually Automation upgrades to improve workflow North America Continue menu expansion China
Slide 17: QuantiFERON
QuantiFERON Increasing clinical evidence and value Q3 2017 highlights 1,400 Strong sales momentum reaffirming >25% annual Number of QuantiFERON-TB 1,200 peer-reviewed publications growth target 1,000 Launch of QuantiFERON Plus, initiating 800 transition to 4th-generation test 600 Leveraging cl
Slide 18: Next-generation sequencing
Next-generation sequencing QIAGEN’s comprehensive NGS portfolio GeneReader NGS System New system placements around the world Delivering on menu expansion with new Breast and Lung panels for tissue and liquid biopsy samples Initiating Custom Channel for unlimited panel content Technology portfo
Slide 19: Next-generation sequencing
Next-generation sequencing QIAGEN presence at ASHG Orlando Q3 2017 highlights Creating impact with powerful NGS data interpretation New collaboration with Counsyl Inc. leveraging QIAGEN Clinical Insight (QCI) New collaboration with CENTOGENE AG Mayo Clinic broadening rare disease interpretatio
Slide 20: 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 21: 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 22: 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 23: Personalized Healthcare
Personalized Healthcare CDx innovation: Key disease areas and applications Q3 2017 highlights New milestone reached with now over 25 master collaboration agreements Immune Initiation of 15 new projects with existing Pharma Oncology modulation partners since beginning of the year Initiation of
Slide 24: QIAsymphony
QIAsymphony Strong expansion in all market segments Q3 2017 highlights Approaching 2017 target of >2,000 cumulative placements Continued double-digit CER growth in related consumables Molecular Diagnostics Academia / Pharma Women’s health Sample processing 2017 catalysts Transplantation
Slide 25: Differentiated Technologies
Differentiated Technologies Innovation at the cutting edge of research Q3 2017 highlights Expanding leadership in liquid biopsy with innovative Liquid biopsy: ~$200 million opportunity product launches including: LB PCR PAXgene Blood ccfDNA System: sample BioX = QIAsymphony automated with stream
Slide 26: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q3 2017 results Appendix Sample to Insight Investor presentation Q4 2017 26
Slide 27: 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 28: 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 29: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q3 2017 results Appendix Sample to Insight Investor presentation Q4 2017 29
Slide 30: Q3 2017: Overview
Q3 2017: Overview 1 Solid Q3 results in line with full-year plans Key results +7% CER adj. net sales growth vs. ~+7% CER outlook Change $ / In $ millions (Except EPS) Q3 2017 Q3 2016 (CER) $0.32 adjusted EPS, and $0.32 excl. restructuring charge ($0.32 CER) vs. $0.32-0.33 CER outlook Net sales 3
Slide 31: Q3 and 9M 2017: Financial review
Q3 and 9M 2017: Financial review Third quarter First nine months (In $ millions, unless indicated) (Diluted EPS in $ per share) 2017 2016 Change 2017 2016 Change Net sales 364.0 338.7 +7% (+7% CER) 1,020.7 971.5 +5% (+6% CER) Adjusted net sales(1) 364.4 338.7 +8% (+7% CER) 1,022.3 971.5 +5% (+6% CER
Slide 32: Q3 2017 and 9M 2017: Adjusted operating income margin
Q3 2017 and 9M 2017: Adjusted operating income margin Adjusted net sales and adjusted operating income margin (Adjusted net sales in $ millions, margin as % of sales) 1,100 $1,022 m $971 m 1,000 400 $367 m $364 m $350 m 900 $334 m $339 m $308 m 800 $298 m 300 700 600 500 24.4% 200 30.7% 26.9% 25.2%
Slide 33: Q3 and 9M 2017: Product type and customer class
Q3 and 9M 2017: Product type and customer class Q3 2017 net sales: $364.0 million 9M 2017 net sales: $1,020.7 million Q3 2017 adj. net sales: $364.4 million 9M 2017 adj. net sales: $1,022.3 million Adj. sales % CER % of Adj. sales % CER % of (In $ m) Change sales (In $ m) change sales Consumables an
Slide 34: Q3 and 9M 2017: Geographic regions
Q3 and 9M 2017: Geographic regions Q3 2017 net sales: $364.0 million 9M 2017 net sales: $1,020.7 million Q3 2017 adj. net sales: $364.4 million 9M 2017 adj. net sales: $1,022.3 million Adj. sales % CER % of Adj. sales % CER % of (In $ m) Change sales (In $ m) change sales Americas(1) $172 +3% 47% $4
Slide 35: 9M 2017: Balance sheet and cash flow
9M 2017: Balance sheet and cash flow Balance sheet data Prudent financing structure (As of September 30) 2017 2016 (As of September 30) Group liquidity (In $ millions) 975 464 Net debt (In $ millions) 774 608 2023 Notes Cash and short-term Shareholder equity ratio 50% 62% investments 2021 Notes $975
Slide 36: Q4 and full-year 2017: Adjusted sales and adjusted EPS targets
Q4 and full-year 2017: Adjusted sales and adjusted EPS targets As of November 6, 2017 2017: Adjusted net sales guidance 2017: Adjusted diluted EPS guidance (At CER to comparative year, (In $ per share, at CER to comparative year) (1) excluding China portfolio change in both periods)(1) ~+7% CER ~$1.
Slide 37: Q4 and full-year 2017: Outlook and assumptions
Q4 and full-year 2017: Outlook and assumptions As of November 6, 2017 Q4 2017 outlook Full-year 2017 outlook Adjusted net sales(1) ~+5-6% CER ~+7% CER ~$0.41-042 CER ~$1.25-1.27 CER Adjusted diluted EPS excluding restructuring charge(2) (Prior year: $0.39) (Prior year: $1.11) After-tax restructuring
Slide 38: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q3 2017 results Appendix Sample to Insight Investor presentation Q4 2017 38
Slide 39: Employees as of September 30, 2017
Employees as of September 30, 2017 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q3 2017 Q3 2016 Production 275 663 111 1,049 1,008 4% R&D 215 696 42 953 1,010 -6% Sales 598 712 581 1,891 1,894 0% Marketing 63 146 56 265 319 -17% Admin 88 330 67 485 469 3% Tota
Slide 40: 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 Q4 2017 40
Slide 41: 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 Mobile: +49 152 018 11