Qiagen N.v. · NYSE:QGEN
Qiagen — German Corporate Conference Berenberg/Goldman Sachs 2019
32 slides from Qiagen's conference presentation, Sep 24, 2019
Slide 1: Investor presentation Q3 2019
American Herlev SocietyDenmark Hospital, of Cancer Oncology 2019 Annual Meeting, Chicago Investor presentation Q3 2019 Roland Sackers, Chief Financial Officer Sample to Insight
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 Regulation G: QIAGEN reports adjusted results, as well as results on a constant exchange rate statements. All statements other than statements of historical fact are, or
Slide 3: World leader in providing Sample to Insight solutions for molecular testing
World leader in providing Sample to Insight solutions for molecular testing 2018 net sales (as % of total QIAGEN sales) QIAGEN customer classes Product portfolio Global sales ~32% ~33% Academia / Europe / Applied ~46% Middle East / Testing Americas ~49% Africa Molecular ~51% Diagnostics Life Science
Slide 4: Q2 2019: Overview
Q2 2019: Overview 1 Achieved Q2 2019 CER outlook Q2 and H1 net sales Q2 and H1 adjusted EPS(1) • $381.6 million net sales (+1% actual, +5% CER vs. ~5% CER outlook) (In $ millions, at actual rates) (In $ per share) • $0.33 adj. EPS ($0.34 CER vs. $0.33-0.34 CER outlook) • 26.0% adjusted operating inc
Slide 5: Q2 2019: Financial review
Q2 2019: Financial review Second quarter First half (In $ millions, unless indicated) (Diluted EPS in $ per share) 2019 2018 Change 2019 2018 Change Net sales 381.6 377.2 1% (5% CER) 730.3 720.8 1% (5% CER) Gross profit margin 64% 67% 64% 67% Adjusted gross profit margin 71% 72% 70% 71% Operating in
Slide 6: Q2 2019: Product type and customer class
Q2 2019: Product type and customer class Q2 2019 net sales: $381.6 million H1 2019 net sales: $730.3 million Sales % % CER % Sales % % CER % (In $ m) change change of sales (In $ m) change change of sales Consumables and related revenues $335 +1% +4% 88% $648 +1% +5% 89% Instruments(1) $47 +6% +9% 1
Slide 7: Q2 2019: Geographic regions
Q2 2019: Geographic regions Q2 2019 net sales: $381.6 million H1 2019 net sales: $730.3 million Sales % % CER % Sales % % CER % (In $ m) change change of sales (In $ m) change change of sales Americas $181 +1% +1% 47% $350 +3% +4% 48% Europe / Middle East / Africa $118 -2% +5% 31% $227 -4% +4% 31% A
Slide 8: Q2 2019: Balance sheet and cash flow
Q2 2019: Balance sheet and cash flow Balance sheet data Leverage ratio(1) (As of June 30) 2019 2018 Group liquidity (In $ millions) 786 900 Net debt (In $ millions) 978 863 3.3 Shareholder equity ratio 49% 48% Leverage ratio(1) 1.7x 1.7x 2.2 1.6 1.7 1.5 1.4 1.3 1.2 Cash flow 1.1 0.9 0.9 (In $ millio
Slide 9: Executing new product launches to capture growth in >$4 billion of market opportunities
Executing new product launches to capture growth in >$4 billion of market opportunities 2018 2019 2020 2021 2022 2023 >$1 billion market QuantiFERON automation partnerships and menu expansion QFT DiaSorin EU QFT DiaSorin U.S. >$800 million market QIAstat-Dx menu expansion QIAstat-Dx EU QIAstat-Dx U.
Slide 10: Q2 2019: Sample to Insight Portfolio updates
Q2 2019: Sample to Insight Portfolio updates Recent developments overview NGS • Decision in July 2019 to restructure China clinical NGS joint venture QuantiFERON • New DiaSorin partnership for QFT-Lyme disease assay, builds on QFT-TB collaboration Precision Medicine • Second FDA approval in 2019 of
Slide 11: Next-Generation Sequencing
Next-Generation Sequencing Q2 2019 updates Updated 2019 NGS sales outlook Universal NGS portfolio • Continue to see strong growth in universal NGS solutions and bioinformatics for use with any sequencer • Launched novel QIAseq Expanded Carrier Screening Panel • Ongoing GeneReader NGS System placemen
Slide 12: Universal NGS workflows: Providing complete NGS solutions for use with any sequencer
Universal NGS workflows: Providing complete NGS solutions for use with any sequencer QIAcube Illumina or Ion Torrent Blood or Tissue QIAsymphony SP Reagents and panels Bioinformatics Connect sequencer Next- Sample Nucleic acid Library Clonal Data generation Interpretation collection purification pre
Slide 13: QIAseq: Versatile universal NGS library preparation covering a range of sequencing needs
QIAseq: Versatile universal NGS library preparation covering a range of sequencing needs Full range of sample Multiple sequencing applications Multiple research areas input types FFPE Blood Targeted Meta- Whole exome / Whole Discovery Reproductive Infectious sequencing genomics targeted capture Geno
Slide 14: QuantiFERON
QuantiFERON Q2 2019 highlights QFT-Lyme assay working in sync with DiaSorin • Collaboration with DiaSorin to develop QFT-Lyme disease assay • QuantiFERON market leading assay performance ◦ Planned launch in 2021 • Liaison automated read-out for fully automated workflow • Multiple drivers supporting
Slide 15: Precision Medicine
Precision Medicine Q2 2019 highlights • Two FDA approvals to date in 2019 for new companion diagnostics PIK3CA: New U.S. CDx assay approved for Piqray® ◦ PIK3CA assay for Novartis with claims for both liquid biopsies Assay using tissue or liquid biopsy for Novartis breast cancer and tissue samples t
Slide 16: Automation Systems: QIAstat-Dx and NeuMoDx
Automation Systems: QIAstat-Dx and NeuMoDx QIAstat-Dx Q2 2019 highlights NeuMoDx Q2 2019 highlights • FDA clearance for QIAstat-Dx analyzer with respiratory panel • Now offering six CE-IVD assays in Europe ◦ Gastrointestinal and meningitis panels in development ◦ Recent CE-IVD assay additions: CMV a
Slide 17: 2020 launch of dPCR systems to capture opportunity in both dPCR and qPCR markets
2020 launch of dPCR systems to capture opportunity in both dPCR and qPCR markets Disruptive value proposition • Highest-sensitivity dPCR combined with better ease of use Digital PCR • Large menu of pre-designed assays market • Time to result and ease of use has potential for conversion of qPCR ~$200
Slide 18: Q3 and FY 2019: Outlook and assumptions
Q3 and FY 2019: Outlook and assumptions (As of July 29, 2019) Q3 2019 outlook FY 2019 outlook ~4-5% CER ~+5-6% CER Net sales (Prior year: $377.9 m) (Prior year: $1,501.8 m) ~$0.35-0.36 CER ~$1.42-1.44 CER Adjusted EPS(1) (Prior year: $0.35) (Prior year: $1.34) Adjustments to operating income (in $ m
Slide 19: Summary
Summary • Achieved Q2 net sales and adjusted EPS targets • Allocating resources to new product launches and best growth opportunities in differentiated Sample to Insight portfolio • Intention to restructure clinical NGS China joint venture – reduced 2019 sales, reviewing options to capture China NGS
Slide 20: Appendix
American Society of Cancer Oncology 2019 Annual Meeting, Chicago Appendix Sample to Insight Investor presentation Q3 2019 20
Slide 21: Q2 2019: Consolidated Statements of Income (unaudited)
Q2 2019: Consolidated Statements of Income (unaudited) Three months ended Three months ended (In $ thousands, except share data) June 30, 2019 June 30, 2018 Net sales 381,612 377,196 Cost of sales 135,697 123,440 Gross profit 245,915 253,756 Operating expenses: Research and development 40,827 39,633
Slide 22: H1 2019: Consolidated Statements of Income (unaudited)
H1 2019: Consolidated Statements of Income (unaudited) Six months ended Six months ended (In $ thousands, except share data) June 30, 2019 June 30, 2018 Net sales 730,266 720,764 Cost of sales 259,511 241,334 Gross profit 470,755 479,430 Operating expenses: Research and development 81,615 79,154 Sal
Slide 23: Q2 and H1 2019: Reconciliation adjusted results
Q2 and H1 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 Second quarter 2019 Reported results 381.6 245.9 60.2 51.8 -7.1 14% 44.7 0.19 Adjustments Business integration, acqu
Slide 24: Q2 and H1 2019: Currency impact
Q2 and H1 2019: Currency impact Net sales Net sales Currency exposure Change (In $ millions) (CER) (As % of CER sales) (In $ millions) Second quarter 2019 U.S. dollar 189.2 189.2 48% 0.0 Euro 77.8 82.2 21% -4.4 British pound 13.9 14.8 4% -0.9 Japanese yen 11.1 11.1 3% -0.0 Other currencies 89.6 97.2
Slide 25: 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 348.7 381.6 730.3 Net sales (CER) 364.5 394.5 759.0 Gross profit 224.8 245.9 470.8 Gross profit margin 64% 64% 64% Adjusted gross p
Slide 26: 2018: Quarterly and full-year income statement summary
2018: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Net sales 343.6 377.2 377.9 403.2 1,501.8 Gross profit 225.7 253.8 256.8 264.8 1,001.0 Gross profit margin 66% 67% 68% 66% 67% Adjusted gross
Slide 27: 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% 188 1% 5% 356 2% 7% Life Scien
Slide 28: Consolidated Balance Sheets
Consolidated Balance Sheets June 30, December 31, June 30, 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 624,616 1,159,079 Cur
Slide 29: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) Six months ended Six months ended June 30, June 30, June 30, June 30, (In $ thousands) 2019 2018 (In $ thousands) 2019 2018 Cash flows from operating activities: Cash flows from financing activities: Net income 74,248 69,111 Repayment of long-term de
Slide 30: Employees as of June 30, 2019
Employees as of June 30, 2019 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q2 2019 Q2 2018 Production 280 753 134 1,167 1,049 11% R&D 216 756 49 1,021 1,037 -2% Sales 547 793 721 2,061 1,895 9% Marketing 84 164 82 330 284 16% Administration 97 368 143 608 518
Slide 31: Abbreviations
Abbreviations Adj Adjusted EBV Epstein-Barr virus JPY Japan Yen RGQ Rotor-Gene Q AIV Avian influenza virus EGFR Epidermal Growth Factor Receptor KRAS Kirsten rat Sarcoma Viral Oncogene RNA Ribonucleic Acid ALK Anaplastic Lymphoma Kinase EGM Emerging Growth Markets Homolog ROM Rupture of Fetal Membra
Slide 32: Your contacts
Your contacts John Gilardi Calendar Vice President Corporate Communications and IR Q3 2019 results November 2019 Phone: +49 2103 29 11711 +1 240 686 2222 Q4 2019 results January 2020 Mobile: +49 152 018 11711 E-mail: john.gilardi@qiagen.com Share information NYSE: QGEN Phoebe Loh Associate Director
Qiagen — German Corporate Conference Berenberg/Goldman Sachs 2019 on 6ix