Slide 1: Investor presentation Q2 2019
ECCMID 2019 conference, Amsterdam Investor presentation Q2 2019 Sample to Insight Investor presentation Q2 2019 1
Slide 2: Agenda
Agenda Introducing QIAGEN Portfolio review Q1 2019 results Appendix Sample to Insight Investor presentation Q2 2019 2
Slide 3: Customers rely on QIAGEN for DNA and RNA molecular testing solutions
THE BUILDING BLOCKS OF LIFE: CUSTOMERS RELY ON QIAGEN FOR DNA AND RNA MOLECULAR TESTING SOLUTIONS Sample Assay Bioinformatics technologies technologies Automation systems Sample to Insight QIAGEN: World leader in molecular testing solutions that advance science and improve outcomes for patients Samp
Slide 4: Addressing the world's most pressing challenges
ADDRESSING THE WORLD’S MOST PRESSING CHALLENGES Academia How can we achieve scientific breakthroughs even faster? Pharma How can we develop better and safer drugs? Applied Testing How can we improve public safety? Molecular Diagnostics How can we further improve outcomes for patients? Expanding rang
Slide 5: A most trusted brand found in virtually every lab worldwide
QIAGEN customer classes Product portfolio Global presence 2018 net sales (% of total QIAGEN sales) 2018 net sales (% of total QIAGEN sales) 2018 net sales (% of total QIAGEN sales) Molecular Academia Diagnostics Americas Europe / ~23% Middle East / Africa ~33% ~49% Life Sciences ~12% ~88% ~46% ~19%
Slide 6: QIAGEN going through transformation to focus on attractive growth opportunities
Sales by customer class (As % of annual net sales) 2016-2020 target: ~+7-9% CER CAGR 100% 100% Academia 45% 26% 23% Pharma 19% 21% Applied Testing 6% 10% 2% U.S. HPV 22% 55% MDx core portfolio 46% 25% 2009 2017 2020 QIAGEN going through transformation to focus on attractive growth opportunities CAGR
Slide 7: 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 Q2 2019 7
Slide 8: Disciplined capital allocation
Reinvest for organic growth Capture more value from our Sample to Insight portfolio New products Geographic expansion Increase returns Disciplined Returned $300 million in 2017 capital allocation New commitment in 2018 to return $200 million via repurchases Targeted M&A / licensing Conti
Slide 9: 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 10: Agenda
Agenda Introducing QIAGEN Portfolio review Q1 2019 results Appendix Sample to Insight Investor presentation Q2 2019 10
Slide 11: Sample to Insight portfolio
Sample to Insight portfolio Q1 2019 developments Life Molecular Sciences Diagnostics Precision Medicine First FDA-approved CDx for new biomarker therascreen FGFR ✓ QuantiFERON Tecan as second customer option for pre-analytical handling with Hamilton offering ✓ Automation Systems QIAstat-Dx New Menin
Slide 12: Precision Medicine
Precision Medicine Q1 2019 highlights Day-One Lab Readiness partners therascreen FGFR: first FDA approval for key CDx usage LabCorp joins QIAGEN’s Day-One Lab Readiness program Selected therascreen U.S.-approved CDx assay portfolio FGFR: New U.S. CDx assay Assay qualifies patients for use of n
Slide 13: Automation Systems: Molecular testing portfolio
Automation Systems: Molecular testing portfolio Pre-molecular immuno-assays Real-time PCR technology NGS technology Low-plex Multiplexing capabilities High-plex High Sample throughput Low QuantiFERON-TB NeuMoDx QIAsymphony GeneReader QIAstat-Dx Automation alliances N96 / N288 RGQ NGS System QIAGEN:
Slide 14: QIAGEN's footprint in the Molecular Diagnostics market
QIAGEN’s footprint in the Molecular Diagnostics market Addressing the majority of the ~$4.8 billion Molecular Diagnostics market in 2018 Single-plex PON Arrays Benchtop NGS GeneReader NGS System Real-time PCR Syndromic testing $2.7 billion market $800 million market Fully integrated sample QIAst
Slide 15: Automation Systems: QIAstat-Dx
Automation Systems: QIAstat-Dx Q1 2019 highlights QIAstat-Dx Meningitis/Encephalitis panel U.S. approval expected in mid-2019 with respiratory panel Detects >20 pathogens Gastrointestinal panel to be launched later in 2019 Bacterial meningitis: most QIAstat-Dx severe form of meningitis Europea
Slide 16: Automation Systems: NeuMoDx
Automation Systems: NeuMoDx Q1 2019 highlights NeuMoDx 96 at ECCMID 2019 First wave of instruments placed in Europe Positive customer response to processing speed, random access, ease of use and planned test menu Plans for CE-IVD menu expansion to 11 tests by end-2019 Priority focus on high-
Slide 17: Automation Systems: GeneReader NGS System
Automation Systems: GeneReader NGS System Ease of use Unique automation Reliable results Data interpretation QIAcube® GeneRead QIAcube® GeneReader™ Bioinformatics portfolio 1 2 3 4 5 First complete Predictable Actionable Expertise Flexibility to NGS workflow costs insights and service fit needs The
Slide 18: QuantiFERON
QuantiFERON Q1 2019 highlights QuantiFERON-TB automation partners Surpassed 60 million tests used worldwide Annual growth of about 12 million tests Expanding portfolio of automation options Option Tecan as second collaboration for tube handling EU rollout under way for DiaSorin LIAISON, on
Slide 19: 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 20: NGS and Differentiated Technologies
NGS and Differentiated Technologies Q1 2019 highlights Sample to Insight liquid biopsy solutions for exosomes Launch of new liquid biopsy kits exoRNeasy Kits: Isolation of RNA from extracellular vesicles from biofluids Exosomal Collection & RNA Detection Interpretation Stabilization miRNeasy Q
Slide 21: Agenda
Agenda Introducing QIAGEN Portfolio review Q1 2019 results Appendix Sample to Insight Investor presentation Q2 2019 21
Slide 22: Q1 2019: Overview
Q1 2019: Overview 1 Achieved Q1 2019 CER outlook for net sales, exceeded adj. EPS Q1 net sales Q1 adjusted EPS(1) $348.7 million net sales (+1.5% actual, +6.1% CER) vs. ~5-6% CER outlook (In $ millions, at actual rates) (In $ per share) $0.27 adj. EPS ($0.28 CER) vs. $0.26-0.27 CER outlook +1.5%
Slide 23: Q1 2019: Financial review
Q1 2019: Financial review First quarter In $ millions, unless indicated (Diluted EPS in $ per share) 2019 2018 Change Net sales 348.7 343.6 1.5% (6.1% CER) Gross profit margin 64% 66% Adjusted gross profit margin 70% 70% Operating income 41.2 47.9 -14% Operating income margin 12% 14% Adjusted operat
Slide 24: Q1 2019: Product type and customer class
Q1 2019: Product type and customer class Q1 2019 net sales: $348.7 million Sales % % CER % (In $ m) change change of sales Consumables and related revenues $313 +2% +7% 90% Instruments(1) $36 -3% +2% 10% Molecular Diagnostics(2) $168 +4% +10% 48% Life Sciences(3) $181 -1% +3% 52% Academia / Applied
Slide 25: Q1 2019: Geographic regions
Q1 2019: Geographic regions Q1 2019 net sales: $348.7 million Sales % % CER % (In $ m) change change of sales Americas $170 +7% +8% 49% Europe / Middle East / Africa $109 -6% +4% 31% Asia-Pacific / Japan $69 +2% +6% 20% Americas Europe / Middle East / Africa Asia-Pacific / Japan Q1 2019: High-single
Slide 26: Q1 2019: Balance sheet and cash flow
Q1 2019: Balance sheet and cash flow Balance sheet data (As of March 31) 2019 2018 Leverage ratio(1) Group liquidity (In $ millions) 780 1,014 Net debt (In $ millions) 968 759 3.3 Shareholder equity ratio 48% 51% Leverage ratio(1) 1.7x 1.4x 2.2 1.6 1.7 1.5 1.4 1.3 1.2 Cash flow 1.1 0.9 0.9 (In $ mil
Slide 27: Q2 and FY 2019: Outlook and assumptions
Q2 and FY 2019: Outlook and assumptions As of May 6, 2019 Q2 2019 outlook FY 2019 outlook ~5% CER ~+7-8% CER Net sales (Prior year: $377.2 m) (Prior year: $1,501.8 m) ~$0.33-0.34 CER ~$1.45-1.47 CER Adjusted EPS(1) (Prior year: $0.33) (Prior year: $1.34) Adjustments to operating income (in $ million
Slide 28: Summary
Summary Achieved Q1 2019 sales outlook, exceeded adj. EPS (at CER) Delivering solid performance while supporting QIAstat-Dx New $100 million share repurchase program commitment 2019: On track for higher sales and adjusted EPS (at CER) ECCMID 2019 conference, Amsterdam CER – Constant exchange rates E
Slide 29: Appendix
American Association of Cancer Research Annual Meeting, Atlanta, GA Appendix Sample to Insight Investor presentation Q2 2019 29
Slide 30: Q1 2019: Consolidated Statements of Income (unaudited)
Q1 2019: Consolidated Statements of Income (unaudited) Three months ended Three months ended (In $ thousands, except share data) March 31, 2019 March 31, 2018 Net sales 348,654 343,568 Cost of sales 123,814 117,894 Gross profit 224,840 225,674 Operating expenses: Research and development 40,788 39,5
Slide 31: Q1 2019: Reconciliation adjusted results
Q1 2019: Reconciliation adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS First quarter 2019 Reported results 348.7 224.8 41.2 28.5 1.1 NM 29.5 0.13 Adjustments Business integration, acquisition an
Slide 32: Q1 2019: Currency impact
Q1 2019: Currency impact Net sales Net sales Currency exposure Change (In $ millions) (CER) (As % of CER sales) (In $ millions) First quarter 2019 U.S. dollar 168.7 168.7 46% 0.0 Euro 67.5 73.1 20% -5.6 British pound 17.8 19.0 5% -1.2 Japanese yen 16.0 16.3 5% -0.3 Other currencies 78.7 87.4 24% -8.
Slide 33: 2019: Quarterly and full-year income statement summary
2019: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2019 Q2 2019 Q3 2019 Q4 2019 YTD 2019 Net sales 348.7 348.7 Net sales (CER) 364.5 364.5 Gross profit 224.8 224.8 Gross profit margin 64% 64% Adjusted gross profit 243.2 243.2 Adju
Slide 34: 2019: Total net sales overview
2019: Total net sales overview Net sales by customer class (In $ millions at actual rates / Q1 2019 Q2 2019 Q3 2019 Q4 2019 YTD 2019 change in actual, CER rates) Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Molecular Diagnostics 168 4% 10% 168 4% 10% Life Sciences 181 -
Slide 35: Consolidated Balance Sheets
Consolidated Balance Sheets March 31, December 31, March 31, December 31, (In $ thousands, except par value) 2019 2018 (In $ thousands, except par value) 2019 2018 Assets (unaudited) Liabilities and Equity (unaudited) Current assets: Current liabilities: Cash and cash equivalents 552,857 1,159,079 C
Slide 36: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) Three months ended Three months ended March 31, March 31, March 31, March 31, (In $ thousands) 2019 2018 (In $ thousands) 2019 2018 Cash flows from operating activities: Cash flows from financing activities: Net income 29,520 32,295 Repayment of long
Slide 37: Employees as of March 31, 2019
Employees as of March 31, 2019 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q1 2019 Q1 2018 Production 292 738 146 1,176 1,053 12% R&D 212 733 50 995 967 3% Sales 555 750 693 1,998 1,876 7% Marketing 85 159 81 325 270 20% Administration 103 330 135 568 508 12%
Slide 38: Abbreviations
Abbreviations Adj Adjusted EUR Euro MP Mycoplasma Pneumonia AIV Avian influenza virus FDA Food and Drug Administration MRSA Methicillin-Resistant Staphylococcus Aureus ALK Anaplastic Lymphoma Kinase FX Foreign exchange MTB Mycobacterium Tuberculosis AML1 Acute Lymphoblastic Leukemia GAAP Generally A
Slide 39: Your contacts
Your contacts Download the QIAGEN IR App John Gilardi Phoebe Loh Alexandra Koenig Vice President Associate Director Coordinator Corporate Communications and IR Investor Relations Investor Relations Phone: +49 2103 29 11711 Phone: +49 2103 29 11457 Phone: +49 2103 29 11709 +1 240 686 2222 Mobile: +49