Qiagen N.v. · NYSE:QGEN
Qiagen — Investor Day (June 2019)
22 slides from Qiagen's investor day presentation, Jun 20, 2019
Slide 1: 2019 Analyst & Investor Day: Financial update
2019 Analyst & Investor Day Financial update Greater value creation with improved growth, margins and capital discipline Roland Sackers Chief Financial Officer Sample to Insight
Slide 2: Disclaimer
Disclaimer Safe Harbor Statement: This presentation contains both historical and forward-looking statements. All Regulation G: QIAGEN reports adjusted results, as well as results on a constant exchange rate (CER) statements other than statements of historical fact are, or may be deemed to be forward
Slide 3: Significant progress on commitments to value creation via sales growth and efficiency gains
Significant progress on commitments to value creation via sales growth and efficiency gains Generating Achieving gains in strong growth in adjusted operating TEAM sales and PHOTO income margin adjusted EPS through efficiency initiatives Ensuring disciplined Making targeted capital allocation to inve
Slide 4: Scorecard on 2016-2020 targets
Scorecard on 2016-2020 targets 2016 – 2020 targets Results since 2016 2016 Building momentum • Accelerating growth Net sales • Moving into sales growth target range (excluding divestments and acquisitions) (~+7-9% CER CAGR Sample to Insight portfolio transforming QIAGEN: 2016-2020) • QuantiFERON-TB:
Slide 5: 2016-2020 targets: On track for sales growth and adjusted diluted EPS
2016-2020 targets: On track for sales growth and adjusted diluted EPS Net sales growth target Adjusted diluted EPS growth target In $ billions, at constant exchange rates to comparative year In $ per share, at constant exchange rates to comparative year 2016-2019 base trends: 2016-2019 base trends:
Slide 6: 2019-2023 targets: Continuing our strong focus on sales growth and improving profitability
2019-2023 targets: Continuing our strong focus on sales growth and improving profitability Net sales growth target NEW Adjusted diluted EPS growth target NEW In $ billions, at constant exchange rates to comparative year In $ per share >+10% CER ~+8-9% CER CAGR CAGR ~+7-8% CER ~$1.45-1.47 CER $1.5 bn
Slide 7: Strategy: Multiple levers to accelerate our performance and deliver greater shareholder value
Strategy: Multiple levers to accelerate our performance and deliver greater shareholder value Expand leadership and leverage Sample to Insight portfolio opportunities Setting new 2019-2023 target for ~+8-9% CER sales growth CAGR(1) QIAGEN has a Deliver on multiple automation platform launches and gr
Slide 8: 2023 targets: Deliver above-market sales growth driven by Sample to Insight portfolio
2023 targets: Deliver above-market sales growth driven by Sample to Insight portfolio Net sales growth target perspectives ~+8-9% CER At constant exchange rates to comparative year CAGR ~+7-8% CER Molecular Diagnostics: ~+9-10% CER CAGR ~55% $1.5 billion QuantiFERON ~$400 m in 2023 QIAstat-Dx >$150
Slide 9: 2023 targets: Ensure the right cost base to deliver above-market growth with margin gains
2023 targets: Ensure the right cost base to deliver above-market growth with margin gains ~29% CER ~27% CER 25% Key achievements: Key future drivers: Organic sales acceleration Scale and continued operating leverage Centralized key functions Lean manufacturing initiatives Site consolidation Initiati
Slide 10: Case studies: “Continuous improvement” mindset to deliver operational leverage
Case studies: “Continuous improvement” mindset to deliver operational leverage Scale and continued operating leverage Lean manufacturing initiatives QIAGEN Product cost index (As % of 2019) Exceeded 2020 goal for >400 Improvements on track, but Business 2019 2023 FTEs (Wroclaw and Manila) >110% 2018
Slide 11: 2023 targets: Deliver double-digit adjusted EPS growth through operational efficiency gains
2023 targets: Deliver double-digit adjusted EPS growth through operational efficiency gains Adjusted diluted EPS growth target perspectives In $ per share, at constant exchange rates to comparative year Operational Non-operational >+10% Organic Gross Operating Tax rate Share CER sales growth margin
Slide 12: 2023 targets: Convert earnings growth into strong cash generation
2023 targets: Convert earnings growth into strong cash generation Operating cash flow trends In $ millions 2015 – 2019 2020 – 2023 Impact from QIAGEN Improvements from Business Services standardization, shift to DSOs transition and regional digital channels and expansion regional scale-up 359 342 31
Slide 13: Disciplined capital allocation strategy to support business growth while increasing returns
Disciplined capital allocation strategy to support business growth while increasing returns Business Sustainable and profitable growth with reinvestments a dynamic new product portfolio Capital Value- Strategic acquisitions and collaborations allocation enhancing to enhance Sample to Insight portfol
Slide 14: Maintaining financial flexibility with appropriate leverage and cost-efficient debt structures
Maintaining financial flexibility with appropriate leverage and cost-efficient debt structures Debt maturity overview (As of March 31, 2019) Leverage ratio(1) (As of March 31, 2019) In $ millions ~ $634 m ~$469 m 1.7 1.6 1.5 ~$400 m 1.4 1.3 1.2 ~$336 m 1.1 0.9 ~$73 m ~$16m 2019 2020 2021 2022 2023 2
Slide 15: Key assumptions: 2019-2023 outlook
Key assumptions: 2019-2023 outlook As of June 20, 2019 2019 outlook 2020-2023 outlook Capital expenditures (PP&E) ~6-7% of sales ~7-8% of sales Capital expenditures (Intangibles, excluding acquired IP) ~1-2% of sales ~1-2% of sales Depreciation and amortization (Excluding acquired IP) ~7% of sales ~
Slide 16: Delivering growth acceleration, margin expansion and disciplined capital allocation
Delivering growth acceleration, margin expansion and disciplined capital allocation 2018 results 2019 outlook 2019-2023 targets Sales growth +6% CER ~+7-8% CER ~+8-9% CER CAGR(1) Adjusted operating income margin 27% ~27% CER ~29% CER Adjusted diluted EPS $1.34 ~$1.45-1.47 CER ≥+10% CER CAGR(2) 2020-
Slide 17: Summary
Summary • Strong foundation to support accelerated sales and adjusted diluted EPS growth • Capitalizing on new product launches and portfolio expansion • Proven track record of operational improvements • Commitment to disciplined capital allocation and use of strong cash flow Sample to Insight 2019
Slide 18: Appendix
Appendix ‘Sample to Insight
Slide 19: 2018: Consolidated Statements of Income
2018: Consolidated Statements of Income Twelve months ended Twelve months ended In $ thousands, except share data December 31, 2018 December 31, 2017 Net sales 1,501,848 1,417,536 Cost of sales 500,888 494,975 Gross profit 1,000,960 922,561 Operating expenses: Research and development 161,852 154,08
Slide 20: 2018: Reconciliation adjusted results
2018: Reconciliation adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax (unaudited) sales profit income income tax rate Net income Diluted EPS Reported results 1,501.8 1,001.0 266.6 225.7 -35.4 16% 190.4 0.82 Adjustments Business integration, acquisition and restructur
Slide 21: 2018: Consolidated Balance Sheets
2018: Consolidated Balance Sheets December 31, December 31, December 31, December 31, In $ thousands, except par value 2018 2017 (In $ thousands, except par value) 2018 2017 Assets Liabilities and Equity Current assets: Current liabilities: Cash and cash equivalents 1,159,079 657,714 Current portion
Slide 22: 2018: Consolidated Statements of Cash Flows
2018: Consolidated Statements of Cash Flows Twelve months ended Twelve months ended December 31, December 31, December 31, December 31, In $ thousands 2018 2017 (In $ thousands) 2018 2017 Cash flows from operating activities: Cash flows from financing activities: Net income 190,380 40,394 Proceeds f