Bio-techne Corp · NASDAQ:TECH
Bio-techne — Investor Day (September 2016)
105 slides from Bio-techne's investor day presentation, Sep 15, 2016
Slide 1: 2016 Investor Day
thursday, September 15th 2016 INVESTOR DAY bietechne’
Slide 2: Disclaimer
Disclaimer Cautionary Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Except for historical information contained herein, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of t
Slide 3: Executing to a Strategy
EXECUTING TOA STRATEGY 3 bietechne
Slide 4: Agenda
AGENDA 1. INTRODUCTION Chuck Kummeth, President and CEO 2. BUSINESS GROUPS DESCRIPTION Kevin Gould, Sr. VP Diagnostics Bob Gavin, Sr. VP Protein Platforms Dave Eansor, Sr. VP Biotechnology 3. PRODUCTS AND TECHNOLOGIES ROAD MAP Fernando Bazan, Chief Tech. Officer 4. FINANCIAL RETURNS ON STRATEGY Jim
Slide 5: Corporate Leadership Team
Corporate Leadership Team Chuck Kummeth Gerry Andros Dr. Fernando Bazan Ruth Bright Peter Breloer CEO Vice President Chief Technology Managing Director Vice President Sales Officer R&D Systems Asia Pacific Europe Dave Eansor Brenda Furlow Bob Gavin Kevin Gould Jim Hippel Sr. Vice President Senior Vi
Slide 6: Corporate Leadership Team
Corporate Leadership Team Dave LePage Dr. Frank Mortari Karen Padgett Dr. Kevin Reagan Chief Information Vice President Vice President Vice President Officer Corporate Development Marketing Diagnostics Markets Struan Robertson Dr. Wendy Shao Gary Stapleton Marcel Veronneau Vice President Managing Di
Slide 7: Epic Tools for Epic Science
What is our Mission? EPIC TOOLS FOR EPIC SCIENCE Pl Empowerment Passion Innovation Collaboration 7
Slide 8: Large Addressable Market Opportunities
Large Addressable Market Opportunities Customers Served Bioprocessing and Media Pharma $1.6B Biotech IVD Assays Oncology Academia and Reagents $0.8B CROs $3.6B Hospitals Foundations Government Multiplex >$10 Billion Testing Addressable Stem Cells Platforms Market $0.9B $0.7B 4-10% CAGR
Slide 9: Bio-Techne Subsidiary Model
Bio-Techne Subsidiary Model Global Business CLT/CEO Regional Unit / Organization Division Communication Business/ Functional Area Shared P&L Leadership Leadership Business/functional Human Capital Ownership Area Ownership Portfolio – Technology Brand/ Local Regional Ways to Life cycle Platform Capit
Slide 10: Years Accomplishments
3 Years Accomplishments $310MM in Revenue growing to $500MM Company’s first 5 year strategic plan $168MM in Adj. Operating Income to near $200MM 500% increase in first year product sales 9 acquisitions in 3 years, cash and debt strategy strictly adhered to 12 new senior executives (Therm
Slide 11: M&A Strategy Results
M&A Strategy Results Targets with ROIC > WACC Targets that fill perceived gaps Sound prioritization strategy Healthy hopper of targets 11
Slide 12: 24 Global Sites
24 Global Sites North America Europe Asia Minneapolis Abingdon Shanghai San Marcos Langley Beijing Devens Bristol Hong Kong Cambridge Wiesbaden Singapore San Jose Lille Tokyo Newark Milan Emeryville Zug Littleton Oakville Toronto Ottawa Total Geographic Sites – 24 Wallingford Total WW Employees - ~1
Slide 13: Organic Sales Growth - Mainland China
Organic Sales Growth- Mainland China 1Core Business Organic Growth FY 16 25% FY 15 29% FY 14 19% 1 Tocris, R&D Systems, Novus products 13
Slide 14: Key Initiatives to Support China Growth Strategy
Key Initiatives to Support China Growth Strategy • Hiring of an experienced commercial lead for Asia • Increase in on-the-ground sales force for greater customer visibility • Integrated sales functions between the three business units in China: Bio-Techne legacy business, PrimeGene and ProteinSimple
Slide 15: FY16 Mainland China Sales Growth by Regions and Staffing
FY 16 Mainland China Sales Growth By Regions and Staffing 18 employees North (4 employees): +25% Beijing Shanghai East(32 employees): +18% Chengdu 48 employees West (1 employee): +41% Guangzhou South (2 employees): +26% * R&D Systems, Tocris 15
Slide 16: Europe Summary
Europe Summary >90% 5 2 Regional Mfg >200 Direct Commercial and Logistics Employees Operating Sales Sites Divisions In region > 30% of Selling more directly UK Protein distribution and European with our customers Germany Platforms and manufacturing employees PhD Switzerland Biotech qualified France
Slide 17: Europe (EMEA) Key Financial Metrics
Europe (EMEA) Key Financial Metrics Europe continues to deliver strong mid-single digit organic growth 17
Slide 18: Prioritization Process: Why Prioritize?
Prioritization Process: Why Prioritize? • Prioritization provides clear direction for investment decisions across the whole business that deliver or exceed the Strategic Plan goals • Provide answers to… Which programs generate the best return and should therefore be resourced? Which programs gen
Slide 19: Process – Comparing Strategic Investments
Process – Comparing strategic investments Benefit Filters Scoring Criteria Using Three questions: Strategic Growth 1. What are the resources required Competitive Differentiation to deliver the project? Talent & Retention 2. What are the benefits of the project, Long Term Revenue ($) assuming success
Slide 20: Bio-Techne – Optimized Portfolio
Bio-Techne – Optimized Portfolio Benefit/Cost Prioritization Frontier 100 Div/Corp Picks 80 Benefit 60 Fixed Core + Existing Relative 40 20 Fixed ? CORE only 0 $0M Cost $367.3M 20
Slide 21: EPIC - Bio-Techne Pride
EPIC - Bio-Techne Pride EMPOWERMENT PASSION INNOVATION COLLABORATION • The guiding principle from which leaders lead • The cultural heartbeat connecting each and every site • The mobilization of a global workforce • The benchmark by which all people initiatives are measured • The word that challenge
Slide 22: EPIC - Bio-Techne Pride
EPIC - Bio-Techne Pride • Global Recognition Program • Bio-Techne Training Squad • Community Affairs • Groundbreaking Performance Mgt • Women In Science Program • EPIC Top Banana and Minions • Global Leadership Development • Total Compensation Focus 22
Slide 23: Bio-Techne Training Squad
Bio-Techne Training Squad 23
Slide 24: Strategic Plan Summary
Strategic Plan Summary 0 42.0% Today 0 41.0% 0 40.0% Revenues 0 39.0% 0 Revenue 38.0% 0 37.0% Adj Opertaing 0 36.0% Income 0 0 35.0% Adj Operating Margin 0 34.0% 0 33.0% Going Forward • Global footprint, with offices in NA, Europe and Asia Build on Bio-Techne’s history of product and financial • M
Slide 25: Strategic Goals
Strategic Goals China over $100MM Op Margins 30%-35% $1B Revenue! 2500+ employees 4-6 divisions Global EPIC Culture 25
Slide 26: Bio-Techne Summary
Bio-Techne Summary 300,000 Products +1,700 Employees Years 500,000 | 6 Citations Instruments Our brands bring you >300,000 quality products Over 1700 employees globally Our companies have been manufacturing and sourcing reagents for 40 years Generated using our products 6 instrument platforms that l
Slide 27: Diagnostics Division
Diagnostics Division Kevin Gould Pl Sr Vice President 27
Slide 28: Clinical Diagnostic Products
Diagnostic Reagents Clinical Diagnostic Assay Development Quality Controls/Calibrators Proficiency Testing Material Biological Raw Materials Antibodies, Antigens, Products Proteins Plasma/Serum 28
Slide 29: Comprehensive Test Segment Product Portfolio
Comprehensive Test Segment Product Portfolio We develop and manufacture the full spectrum of reagents, calibrators and quality controls for the following diagnostic areas: • General Chemistry • Hematology • Diabetes (Blood glucose, HbA1c) • Blood Gas/Electrolytes • Cardiac Markers • Coagulation • Ur
Slide 30: Biological Materials and Plasma Processing
Biological Materials and Plasma Processing • Protein purification – Affinity chromatography • Stabilization of proteins in Liquid Matrices • Enzyme stabilization • Fractionation • Plasma processing • Custom processing : defibrination, delipidization, • Ultra-filtration/Dialysis • Heat inactivation •
Slide 31: Regulatory Certifications
Regulatory Certifications FDA Registered Establishment and Device Listing Device Manufacturing Licenses ISO 13485:2003 Certification ISO 9001:2008 Certification Compliant with cGMP/QSRs (US), ISO, IVDD and other regulations (EU), ANVISA Canadian Medical Device Regulation (CMDR) and Establishment Lic
Slide 32: Custom Products and Contract Manufacturing
Custom Products and Contract Manufacturing • Customization for specific applications and instrument platforms • Key supporting products: – Calibration Verification/Linearities – Standards – Proficiency Products – Reagents 32
Slide 33: Products for the Point of Care Market
Products for the Point of Care Market – Industry leading experience developing products for automated and manual POC analyzers and test systems – We produce the consumable fluids and reagents for the IVD industry’s leading companies and platforms 33
Slide 34: Diagnostics Division-Today
Diagnostics Division-Today • Customer oriented organization • Four locations: ~225,000 square feet • Management team with extensive IVD industry experience • Balance of infrastructure and technology • Strict Regulatory Compliance with an exemplary quality record: • Last FDA Audits • No Observations
Slide 35: Protein Platforms Division
Protein Platforms Division Bob Gavin Pl Sr Vice President 35
Slide 36: Why Proteins?
Why Proteins? • Proteins Are Complex 36
Slide 37: Why Proteins?
Why Proteins? • Todays Protein Tools Can Be Even More So 37
Slide 38: Tools Don't Need To Be Complex
Tools Don’t Need To Be Complex Answer We provide systems to allow scientists to focus on scientific questions and answers, not performing the experiment in between Scientific Question 38
Slide 39: Systems Based Approach
Systems Based Approach Imaging Separation Immunoassay Microfluidics Measurement Analysis 39
Slide 40: Unique Protein Analysis Focus
Unique Protein Analysis Focus FluorChem AlphaImager Simple Western Single-Cell Simple Plex iCE MFI 40
Slide 41: Proven Track Record of Innovation
Proven Track Record of Innovation NP1000 NP100 Simon Sally Peggy Peggy Sue Wes Maurice 2009 2010 2011 2012 2013 2014 2015 2016 FCE FCM MFI5200 iCE3 Bot1 FCR Sally Sue Ella Milo 41
Slide 42: ProteinSimple
ProteinSimple [proh-teen sim-puh l] •Examples •Word Origin verb (used with object), ProteinSimple it! 1. to rethink complex scientific problems into simple, elegant solutions that are delightful to use. We took that old fashioned Western Blot and ProteinSimpled it! 42
Slide 43: Innovation Drives Revenue
Innovation Drives Revenue 43
Slide 44: Global Footprint
Global Footprint • 16,000+ Installed Base • ~300 Employees Worldwide • Production facilities in San Jose, Wallingford, Toronto, Ottawa • Demo facilities in San Jose, Boston, Abingdon, Minneapolis, Shanghai, Tokyo • Direct sales in NA, Europe and Asia 44
Slide 45: Attractive Revenue Mix
Attractive Revenue Mix 67% 42% Biopharma Recurring 44% Outside US 45
Slide 46: Serving All Aspects of Life Science
Serving All Aspects of Life Science Basic Applied Clinical Diagnostics Research Research Research Pharma Pharma Development Production Instruments Reagents Consumables Life Science Tools Life Science 46
Slide 47: What's In Your Sample?
What’s In Your Sample? • Different scientists, different questions Basic Applied Clinical Diagnostics Research Research Research Measure small amounts of protein in complex mixtures Pharma Pharma Development Production Measure and characterize purified proteins 47
Slide 48: What's In Your Sample?
What’s In Your Sample? • Different questions, different tools Basic Applied Clinical Diagnostics Research Research Research FluorChem Simple Western Single-Cell Simple Plex AlphaImager Pharma Pharma Development Production iCE MFI 48
Slide 49: Biologics Drive Pharma Growth
Biologics Drive Pharma Growth • Purified Proteins as Drugs Biologics Pipeline • ~700 companies 338 worldwide researching and 250 commercializing biologics 93 69 49 46 30 15 10 7 • Pipeline of Biologics in Phase I to Application Submission >900 49
Slide 50: Pure Proteins, Deeply Characterized
Pure Proteins, Deeply Characterized General pH, Osmolality, Purity Identity SDS-PAGE, IEX, SEC, Viscosity, Appearance SDS-PAGE, IEX, IEF, RP, IEF, CZE, HIC, iCE CZE, MS, iCE Impurities Structure ELISA, PCR, ISPR, LO, CD, FTIR, NMR, DLS, SEC, AUC, MS, DSC, ITC, SEC, SDS-PAGE, MFI MS, X-Ray Cryst. iCE
Slide 51: iCE – Is My Drug Consistent?
iCE – Is My Drug Consistent? iCE3 Charge Signature Maurice Gold Standard for Charge Heterogeneity Installed in development and QC 51
Slide 52: MFI – Is Drug Contaminated?
MFI – Is Drug Contaminated? Glass Oil Rubber Air bubbles Aggregate MFI Particle Images Defined the field for monitoring protein aggregation 52
Slide 53: What's in your sample?
What’s in your sample? Western Blot ELISA 53
Slide 54: 1:2 850K54
1:2 850K54
Slide 55: Start with a Lot of Gear…
Start with a Lot of Gear… Separation Gels Blotting Imaging Antibody ImmunoAssay 55
Slide 56: Spend Up to Two Days…
Spend Up to Two Days… Load gel Run gel Prep gel Build Sandwich Membrane Transfer Primary Probe Wash Secondary Probe Wash Again Expose Develop 56 Detect
Slide 57: And Get Inconsistent Data!
And Get Inconsistent Data! Manual Day Time consuming 1 Inconsistent Non-reproducible Day Semi-quantitative at 2 best 57
Slide 58: Simple Western is the Future…
Simple Western is the Future… Prepare Results samples Click start automatically 58
Slide 59: …with Data you can Rely on
…with Data you can Rely on Fully automated Fast Consistent CV=4.4% Reproducible CV=9.1% Fully quantitative 59
Slide 60: Gel-free. Blot-free. Hands-free.
Gel-free. Blot-free. Hands-free. Wes 25 samples Peggy Sue 96 size/charge Sally Sue NanoPro 1000 96 size 96 charge 60
Slide 61: ELISA – That's a lot of plates!
ELISA – That’s a lot of plates! • ~2,000,000 ELISAs are performed annually • ~1,000,000 are ELISA kits • Typical lab does 50-100 plates per year on 6-10 different targets 61
Slide 62: ELISA
ELISA Traditional ELISA 1. Coat Plate with Capture Ab • Sensitive & Accurate 2. Wash Plate • Laborious 3. Add Antigen (sample) 4. Wash Plate 5. Add 2o Ab and incubate 6. Wash Plate 7. Add Detection Reagent and incubate 8. Read in plate reader and analyze Gold Standard 62
Slide 63: Simple Plex – A New Way to ELISA
Simple Plex – A New Way to ELISA Prepare samples Click start Results automatically 63
Slide 64: Simple Plex Removes the Tedium
Simple Plex Removes the Tedium Traditional ELISA Simple Plex ELISA • Traditional ELISA ● Simple Plex ELISA – Up to 8 separate steps – Only 2 separate steps – Each Step adds variability – Variability is low – May take up to 6 hours – Only takes up to 1.25 hours – Requires larger sample volumes – Requ
Slide 65: Produces More and Better Data
Produces More and Better Data • Up to 4 targets per sample • Wider dynamic range • Lower detection limits 65
Slide 66: Four Growth Platforms
Four Growth Platforms Simple Plex Biologics Simple Western Single-Cell 66
Slide 67: Unique Combination and Opportunity
Unique Combination and Opportunity 67
Slide 68: Biotechnology Division
Biotechnology Division Pl Dave Eansor Sr Vice President 68
Slide 69: Our Business Today: Biotech
Our Business Today: Biotech Business Overview FY2016 Revenue: $317.3M Revenue by Geography Largest, most profitable Division of Bio-techne China 9% Americas Highest Quality reagents for Life Science Pacific Rim Research and Diagnostics 9% Europe World Leader in Proteins, ELISA and Pacific Rim
Slide 70: Highest-Quality Product Portfolio
HIGHEST-QUALITY PRODUCT PORTFOLIO Proteins Small Biotechnology Stem Cell Molecules Products StemXVivo® ELISAs Antibodies Proteome Profiler Arrays RNA-ISH Luminex TRUSTED GLOBAL BRANDS 70
Slide 71: Proteins
Bio-Techne introduction Proteins 1800 Papers Citing Recombinant Proteins 2500+ Recombinant proteins 95% Developed and tested in-house R&D Systems 41% 43 GMP-grade proteins Custom protein development service R&D Systems: The most widely used proteins in the world 71
Slide 72: High Value/High Growth Applications
High Value/High Growth Applications Specialty Media Bioprocessing Supplements (Growth Factors for Lg scale Production) Cancer Immunotherapy Research Cell Therapy (Immune Checkpoint Proteins) (GMP Proteins) Proteins 72
Slide 73: Antibodies
Bio-Techne introduction Antibodies • In-house manufacturing & testing • Polyclonal, monoclonal, recombinant • Antibodies for Diagnostic assays • Custom Antibody development services 73
Slide 74: The Versatility of High Quality Antibodies
The Versatility of High Quality Antibodies Western Blot and Simple Western IHC Flow Cytometry Immunocytochemistry 1,000,000 800,000 600,000 400,000 200,000 - Blocking/Neutralization Assays Luminex® Assays Ella Arrays ELISA Assays 74
Slide 75: Advanced Cell Diagnostics
Advanced Cell Diagnostics Acquired in August 2016 Newark, CA based company with ~120 employees Developed technology to improve detection of genes and gene transcripts using probes (in-situ hybridization) with initial focus on RNA transcript detection (RNAScope) Key improvements: Binding sp
Slide 76: In Situ RNA Analysis - the Unmet Need
In Situ RNA Analysis- the Unmet Need • IHC and FISH are important tools for research & tissue diagnostics • No sensitive and robust technology for in situ RNA detection prior to… DNA RNA Protein FISH RNAscope® IHC 1990s 2010 1970s 7 6 76
Slide 77: Automation for Research and Clinical Diagnostics
Automation for Research and Clinical Diagnostics Automated Hybridization & Amplification Visualize Quantify RNAscope Reagents VENTANA: Discovery Ultra, Discovery XT LEICA: Leica Bond III and Rx *Commercial Launch of RNAscope ASRs on Leica’s Bond III Clinical Platform in late 2016 77 77
Slide 78: RNAscope Biomarker Assays and CDx
RNAscope Biomarker Assays and CDx Translational Clinical Trial Clinical Practice Research Research Example: Merrimack Pharmaceuticals, Inc. is using ACD's RNAscope technology to select patients for its Phase 2 ... clinical trial of its product candidate MM-121. Merrimack will utilize RNAscope to ide
Slide 79: Synergies between Divisions
Synergies between Divisions Diagnostics Assay Development Simple Western™ Antigens and SimplePlex™ Antibodies Reagents, Custom Development, Services Simple Plex Biotechnology Single Cell Biologics 79
Slide 80: Biotech Channels to Market
Biotech Channels to Market Rest of APAC EMEA US EMEA LA CHINA US Canada Worldwide Direct Salesforce 3rd Party (Fisher) eCommerce Distribution Pharma, Biotech, Academia, Government, CRO, Resellers 80
Slide 81: Best-in-class Websites & Search Engine Optimization
Best-in-class Websites & Search Engine Optimization 81
Slide 82: Deep, Relevant, Contextual Scientific Content
Deep, Relevant, Contextual Scientific Content 82
Slide 83: Digital Marketing
Digital Marketing Bio-Techne Web Traffic 2,000,000 1,800,000 • Optimization of digital 1,600,000 channels is driving >10% 1,400,000 1,200,000 traffic growth YOY for newly 1,000,000 developed Bio-Techne web 800,000 properties 600,000 400,000 200,000 0 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 Q1 Q2 Q3
Slide 84: Biotech Product Positioning Strategy
Biotech Product Positioning Strategy: Protect share and move up the value chain into higher growth application areas Traditional RUO Product Lines High Growth Applications Novel Content, Stem Cells, GMP Proteins & Small Molecules Applications, Specialty Medias, Assay Standards Novel Content, New ELI
Slide 85: Roadmaps to Products and Technologies
Roadmaps to Products and Technologies Pl J. Fernando Bazan Chief Technology Officer 85
Slide 86: Our Core Products Vitality
Our Core Products Vitality Our extensive portfolio of reagent products is unrivaled, and continually strives to capture new proteins, antibodies, small molecules and assays, that drive discovery in life science and clinical research 2.5 NPI – 1st year sales 14 (retail + custom) SKUs launched (x 103)
Slide 87: Product Vitality and the Role of Innovation
Product Vitality and the Role of Innovation • This iconic picture of long-term product sales shows how they typically ascend from their (NPI) introduction to reach a high sustained level, and this is the nature of Bio-Techne’s product vitality Total Revenue Product life cycle Years Since Product Lau
Slide 88: Product Discovery Challenges
Product Discovery Challenges • We are refining the way we choose and develop new product candidates–– target proteins, specific antibodies and sensitive assays––to not only rely on characterized molecules from publications.. because papers in journals capture past work, & don’t necessarily reflect c
Slide 89: Product Discovery and Innovation
Product Discovery and Innovation To hone our new product strategy, we have examined how we vet and shape candidate projects, seek outside advice, spark collaborations and partnerships, and initiated an in-house discovery program • An active effort to build a more robust and diverse KOL constellation
Slide 90: Focus Group Strategies
Focus Group Strategies FGs are cross-functional teams of scientists, marketing specialists and product managers, tasked with mapping new strategies and products we drive forward, capture emerging trends, VOC, trigger seminars, and interface with our KOL network • Integrate data from a number of sour
Slide 91: Key Opinion Leaders Strategies
Key Opinion Leaders Strategies KOLs can be organized as a dynamic ‘constellation’ from our inner ring of closest Scientific Advisory Board (SAB) members, to a bench of close KOLs and consultants, to a larger outer set of reliable KOLs and top customers. We can organize the KOLs by discipline, instit
Slide 92: Discovery Initiatives
Discovery Initiatives We are constantly refining our processes and improving our products, & driving innovation to address the more complex strategic needs of a diversified Bio-Techne, the changing nature of the reagent market, and new clinical and research needs • A dedicated, agile Discovery Group
Slide 93: Discovery & Innovation Drive Entrance into New Areas
Discovery & Innovation Drive Entrance into New Areas • High-value reagents, together with next-gen devices & cutting-edge genomic tools, add new strategic dimensions to our products, & enlarge the addressable markets 93
Slide 94: Turning Strategy into Financial Returns
Turning Strategy into Financial Returns Pl Jim Hippel Chief Financial Officer 94
Slide 95: The results of our strategy so far…
The results of our strategy so far… On the way to $1B Revenue with solid organic growth in our core, profitability in line with organic growth, and acquisitions positioned to accelerate both going forward 95
Slide 96: Financial Performance by Segment
Financial Performance by Segment Biotechnology • Organic growth improved from (1%) in FY13 to +5% in FY16. • Adj. OM% decreased from 58% in FY13 to 53% in FY16 mostly due to the impact of FX and Novus acquisition. Diagnostics (formally Clinical Controls) • Significant increase in Revenue due to Bion
Slide 97: The Impact of Our Acquisitions To-Date
The Impact of Our Acquisitions To-Date BioTechnology • PrimeGene China-for-China protein manufacturing, GMP capabilities in China. • Novus Biologicals Extended breadth of antibody portfolio to over 200K SKUs; greatly improved web platform and digital commerce; enhanced marketing capabilities and cre
Slide 98: Potential Financial Returns on Current Portfolio
Potential Financial Returns on Current Portfolio ~41% OM ~11% 5yr CAGR ~38% OM Our goal is to exit FY21 with both double-digit organic revenue growth and adjusted EPS growth rates 98
Slide 99: Key Assumptions by Segment
Key Assumptions by Segment • Continue to grow the “core” at mid-single digits • Rapid growth in ACD as technology gains Biotechnology adoption in diagnostic pathology markets • Protect/maintain “core” margins while greatly expanding ACD operating margins • Hematology Controls continue with mid-singl
Slide 100: What "gaps" do we still need to fill?
What “gaps” do we still need to fill? Opportunities Bioprocessing and Media Media IVD Assays $1.6B Stem Cells and Oncology Flow Cytometry Reagents $0.8B PCR $3.6B Single Cell Clinical Biomarkers Multiplex >$10 Billion Diagnostics Testing Addressable Stem Cells Therapeutics Platforms
Slide 101: What Does Our Acquisition Pipeline Look Like?
What Does Our Acquisition Pipeline Look Like? ~ 75 total targets ~ 30 high strategic fit ~ 20 located in China ~ 15 instrument platforms ~ 10 > $100mm Rev ~ 10 < $10mm Rev ~ 10 actionable Always “working” ~ half a dozen at any given time 101
Slide 102: Key Criteria on Our Acquisition Filter
Key Criteria on Our Acquisition Filter Actionable? DEAL Process, perseverance, and patience needed to be successful in M&A 102
Slide 103: How Much "Dry Powder" for More Acquisitions?
How Much “Dry Powder” for More Acquisitions? ~$1.2B Over the next five years Assumes maximize leverage of 3.5x EBITDA over next five years, with free cash flow after paying dividend also allocated to acquisitions 103
Slide 104: Bio-Techne in 5 Years if the "Stars Align"
Bio-Techne in 5 Years if the “Stars Align” ~12% 5yr ~33% OM CAGR ~41% OM Assuming we acquire targets with similar financial trajectories as past acquisitions, we should continue to increase our organic growth rate and contribution to the bottom-line 104
Slide 105: Q&A
Q&A Panel 105 bietechne