Slide 1: Half Year Results 2019
Zurich, August 15 2019 Half Year Results 2019 ANALYST & MEDIA CONFERENCE CALL
Slide 2: Speakers
Speakers Dr. Achim von Leoprechting, CEO Dr. Rudolf Eugster, CFO
Slide 3: Agenda
Agenda FINANCIAL AND OPERATING HIGHLIGHTS FINANCIAL RESULTS OUTLOOK QUESTIONS AND ANSWERS 3
Slide 4: Financial Highlights H1 2019
Financial Highlights H1 2019 • Strong sales growth of +8.3% and +8.4% in LC, driven by double-digit growth in the Life Sciences Business • North America and Asia (especially China) posting particularly strong growth • Organic growth of +6.3% in LC with significant demand in instrument business • Tot
Slide 5: Operational Highlights: Launch of NGS DreamPrep
Operational Highlights: Launch of NGS DreamPrep™ COMBINES UNIQUE FEATURES OF THE FLUENT PLATFORM WITH REAGENTS FROM TECAN GENOMICS (NUGEN) UNPRECEDENTED SPEED AND ACCURACY FOR AUTOMATED LIBRARY PREPARATION AND QUANTIFICATION • Two library preps in a day DNA-seq libraries, normalized and ready to seq
Slide 6: Operational Highlights: Launch of Spark Cyto
Operational Highlights: Launch of Spark® Cyto THE FIRST LIVE CELL PLATE READER WITH REAL TIME IMAGE CYTOMETRY UNIQUE FEATURES • More cells analyzed, faster One image of the whole-well in a 96 and 384-well plate (patent pending) • Healthy, living cells in a controlled environment Full environmental c
Slide 7: Operational Highlights: Partnerships
Operational Highlights: Partnerships NEW COLLABORATIONS IN DISEASE AREAS OF HIGH UNMET MEDICAL NEED COLLABORATION WITH QIAGEN NEW DEVELOPMENT PROJECT WITH THE BINDING SITE PARTNERING BUSINESS LIFE SCIENCES BUSINESS • Collaboration to improve sample processing • Ongoing platform development of QIAGEN
Slide 8: Operational Highlights: Acquisition of Long-term Supplier
Operational Highlights: Acquisition of Long-term Supplier MAIN FOCUS OF ACQUISITION: VERTICAL INTEGRATION BENEFITS AND COST CASE • Acquisition of long-term supplier closed at end of May • Vertically integration of critical precision-machined parts manufacturing • Two manufacturing sites, one in Cali
Slide 9: Agenda
Agenda FINANCIAL AND OPERATING HIGHLIGHTS FINANCIAL RESULTS OUTLOOK QUESTIONS AND ANSWERS 9
Slide 10: Order Entry and Sales Performance
H1 2019 Order Entry and Sales Performance ORDER ENTRY H1 2019 ORDER ENTRY H1 2019 VS. H1 2018 340 • +4.2% in CHF, +4.5% in LC 320 310.6 298.1 • Organic +2.4% in CHF, +2.7% in LC CHF (mio) 300 280 • Again exceeding the sales realized 260 • Order backlog with double-digit % increase 240 220 2018 2019
Slide 11: Segment Sales
H1 2019 Segment Sales SALES 180 2018 LIFE SCIENCES BUSINESS: 2019 162.4 • Sales up by 15.5% in CHF and 15.7% in LC 160 • Organic +11.9% in CHF, +12.0% in LC CHF (mio) 140.5 140 133.0 133.7 • Strong growth from the instrument business, in particular 120 from the Fluent automation workstation • Order
Slide 12: Regional Sales Development
H1 2019 Regional Sales Development EUROPE YoY % Others 1.5% • Life Sciences Business up by 9.6% in LC on the basis of the +11.8% in LC high order backlog from the prior year +9.2% in CHF • Partnering Business slightly below prior-year level due to the unusually high comparative basis Asia NORTH AMER
Slide 13: Gross Profit
H1 2019 Gross Profit GROSS PROFIT (% = % OF SALES) GROSS PROFIT INCREASED TO CHF 141.0M 160 • CHF 12.5m or 9.7% above H1 2018 GROSS PROFIT MARGIN UP BY 60BPS 141.0 Main effects contributing: 47.6% • (+) Price CHF (mio) 128.5 • (+) Exchange rate impact • (+) Material cost savings 120 47.0% • (-) Prod
Slide 14: Cost Structure
H1 2019 Cost Structure OPERATING EXPENSES (% = % OF SALES) OPERATING EXPENSES GREW MORE THAN SALES 120 108.0m (36.5%) • Operating expenses up by 340 bps 90.4m 100 (33.1%) • All operating expenses in H1 2019 include costs from newly 46.9 acquired companies that significantly contribute to increase (1
Slide 15: EBIT and EBITDA
H1 2019 EBIT and EBITDA EBIT AND EBITDA (IN CHF MILLIONS) 2018 REPORTED EBIT DECREASED TO CHF 33.0M 60 2019 • 4.8m or 12.7% below H1 2018 48.1 49.3 50 • Includes all acquisition-related costs and cost from CEO CHF (mio) 40 37.8 change; only minimal positive effect from IFRS 16 33.0 30 REPORTED EBITD
Slide 16: Segment Profitability
H1 2019 Segment Profitability EBIT (IN CHF MILLIONS) 2018 LIFE SCIENCES BUSINESS: 30 25.6 25.0 25 2019 • EBIT margin at 11.2% 18.1 19.0 • Factors contributing include: CHF (mio) 20 15 • (-) Higher R&D expenses 10 • (-) Acquisition-related costs 5 • (+) Higher gross profit margin, including price and
Slide 17: Net Profit
H1 2019 Net Profit NET PROFIT NET PROFIT BELOW PRIOR YEAR 35 • CHF 3.9m or 13.2% below H1 2018 30 29.2 NET PROFIT MARGIN AT 8.6% 26.0 26.0 25.3 • Main factor contributing: 25 23.5 • (-) EBIT down by CHF 4.8m, including all acquisition-related costs CHF (mio) and one-time costs 20 15 10 5 0 2015 2016
Slide 18: Basic Earnings per Share
H1 2019 Basic Earnings per Share BASIC EARNINGS PER SHARE EARNINGS PER SHARE AT CHF 2.14 3 NUMBER OF SHARES OUTSTANDING ON 2.49 JUNE 30,2019: 11.8M (JUNE 30, 2018: 11.8M) 2.31 2.25 2.14 2.04 CHF (mio) 2 48.8% 49.5% 48.8% 49.5% 1 0 2015 2016 2017 2018 2019 18
Slide 19: Cash Flow
H1 2019 Cash Flow CASH FLOW FROM OPERATIONS OF CHF 36.0M (H1 2018: CHF 38.4M) • Cash conversion of 12.1% of sales • Days Sales Outstanding down to 50 days (H1 2018: 55 days) • Includes CHF 16.3m for amortization & depreciation (H1 2018: CHF 10.3m), thereof CHF 5.2m from IFRS 16, CHF 2.3m for PPA and
Slide 20: Key Figures
H1 2019 Key Figures 2018 2019 Δ IN % Order Entry (in CHF mio) 298.1 310.6 +4.2% Sales (in CHF mio) 273.5 296.1 +8.3% Sales in local currencies (in CHF mio) 273.3 296.1 +8.4% Gross Profit (in CHF mio) 128.5 141.0 +9.7% in % of sales 47.0% 47.6% R&D (in CHF mio) 22.0 29.6 +34.1% in % of sales 8.1% 10.
Slide 21: Agenda
Agenda FINANCIAL AND OPERATING HIGHLIGHTS FINANCIAL RESULTS OUTLOOK QUESTIONS AND ANSWERS 21
Slide 22: Confirming Financial Outlook for 2019
Confirming Financial Outlook for 2019 SALES DEVELOPMENT SALES OUTLOOK 700 Growth in MSD to • Forecast for growth in local currencies in the mid- to high 650 HSD range in LC1 single-digit percentage range 600 593.8 • Recently closed acquisition of supplier expected to add CHF (mio) 550 548.6 500 506.
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Slide 24: Contact and Events
Contact and Events IR IPAD APP News, financial reports, presentations, videos and more NEXT EVENTS 2020 CONTACT Martin Braendle March 17: Full Year Results Vice President, Communications & IR Phone: +41 (0) 44 922 84 30 April 7: Annual Shareholder Meeting investor@tecan.com www.tecan.com 24
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Slide 26: Tecan – Who we are
Tecan – Who we are Tecan (www.tecan.com) is a leading global provider of laboratory instruments and solutions in biopharmaceuticals, forensics and clinical diagnostics. The company specializes in the development, production and distribution of automated workflow solutions for laboratories in the lif