Slide 1: Schedule 14A Proxy Statement - Illumina, Inc.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 14A Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934 Filed by the Registrant x Filed by a Party other than the Registrant ¨ Check the appropriate box: ¨ Preliminary Proxy Statement ¨ Conf
Slide 2: Illumina 2013 Proxy Roadshow
Illumina 2013 Proxy Roadshow May 16 - 17, 2013 © 2013 Illumina, Inc. All rights reserved. Illumina, IlluminaDx, BaseSpace, BeadArray, BeadXpress, cBot, CSPro, DASL, DesignStudio, Eco, GAIIx, Genetic Energy, Genome Analyzer, GenomeStudio, GoldenGate, HiScan, HiSeq, Infinium, iSelect, MiSeq, Nextera,
Slide 3: Safe Harbor Statement
Safe Harbor Statement This communication may contain statements that are forward-looking. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected o
Slide 4: Executive Summary of Proposal
Illumina Investor Presentation Executive Summary of Proposal 4 Requests an amendment to our 2005 Stock and Incentive Plan: Authorize an additional 5 million shares to the plan Extend the term of the Plan to June 28, 2016 Additional shares are expected to last three years Illumina’s Board of Director
Slide 5: Who is Illumina?
Who is Illumina? Worldwide Leader in Genomic Analysis 2012 Revenue of $1.15 billion Guidance of 15% revenue growth in 20131 Over 2,400 employees globally; headquartered in San Diego, CA Recognized leader in next-generation sequencing >90% of the world’s sequencing data generated using Illumina platf
Slide 6: Illumina's Markets 2013
Illumina’s Markets 2013 Over $12 Billion Opportunity Consumer Applied ~$1B Markets Markets >$50M ~$4B ~$6B Clinical & Reproductive Translational Health Life Science ~$1B Research Improve human health by unlocking the power of the genome 5
Slide 7: Illumina's Equity Compensation Philosophy
Illumina’s Equity Compensation Philosophy Program is Based on Guiding Principles Equity Compensation: Used to attract, retain and motivate new and existing employees Aligns employee and stockholder interests Granted to our highest performing employees and senior executives to generate long-term shar
Slide 8: Share Balance by Year
Share Balance by Year 5 Million Shares Will Fund Program for 3 Years 7,500 Evergreen expired in 2010 5,000 2,500 0 2008 2009 2010 2011 2012 Available Shares to Grant (M) 7
Slide 9: Net Grants by Year
Net Grants by Year Net Grant Levels Have Been Stable While the Number of Employees has Grown 2,500 2,000 1,500 1,000 500 0 2008 2009 2010 2011 2012 Net Grants (M) Employees 8
Slide 10: Gross Burn Rate
Gross Burn Rate Disciplined Annual Share Granting Practice 4.8% 4.5% 4.0% 3.8% 3.4% 3.4% 3.0% 1.5% 0.0% 2008 2009 2010 2011 2012 Gross Burn Rate (%) Our net burn rate averaged ~3.0% over the last five years 9
Slide 11: Outstanding Options
Outstanding Options Employee Interests are Closely Aligned with Non-Employee Shareholders Employees1 are holding more than 6 million in the money options at a weighted average price of $24.49 Outstanding Options by Outstanding Options by Strike Price Expiry Date 1,200 1,800 1,600 1,000 1,400 800 1,2
Slide 12: Capital Deployment Strategy for Long-Term Growth
Capital Deployment Strategy for Long-Term Growth Equity Buybacks Partially Offset Dilution from Shares Granted Equity Repurchases $250 million authorization; ~$140 million remaining Committed to returning cash to shareholders 6.1 Invest for Growth 6 4.3 Expanded sales force 4 3.1 Infrastructure inve
Slide 13: Leading Talent Brings Superior Revenue & EPS Growth
Leading Talent Brings Superior Revenue & EPS Growth 2013 Guidance is for 15% Revenue Growth¹ Revenue CAGR: 19% EPS CAGR 2 : 24% $1,200 $1.60 $1.20 $800 $0.80 $400 $0.40 $0 $0.00 2008 2009 2010 2011 2012 Revenue ($M) non-GAAP EPS 1. Revenue guidance given via press release and 8-K on January 28, 2013
Slide 14: Five-Year Stock Performance
Five-Year Stock Performance Compensation Philosophy and Execution Delivers Superior Shareholder Value Epicentre Acquisition 300% MiSeq & BaseSpace Launched Eco Real-Time PCR System Launched HiSeq 2500 Announced 250% HiScanSQ Begins Shipping iScan Launched 200% HiSeq 2000 and Genome Analyzer IIe Laun
Slide 15: Financial Outlook
Financial Outlook Illumina Will Continue to Deliver Strong Growth for the Foreseeable Future 2013 2014 and Beyond Key Target Markets: Revenue: 15% YoY Growth – Clinical & Translational: $6B – Life sciences: $4B Gross Margin: ~ 70% – Reproductive Health: $1B Non-GAAP EPS 2 : $1.55 - $1.62 – Applied m
Slide 16: Conclusion
Conclusion Illumina’s Board of Directors Recommends a Yes Vote on Proposal 4 We use equity compensation to align employee and shareholder interests We have a disciplined annual share granting practice We have a strong track record of performance stemming from our overall strategic plan, including eq
Slide 17: Illumina
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