Qiagen N.v. · NYSE:QGEN
Qiagen — Q1 2017 Earnings Presentation
33 slides from Qiagen's earnings presentation, May 3, 2017
Slide 1: First quarter 2017 results
First quarter 2017 results May 3, 2017 Sample to Insight First quarter 2017 results 1
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 statements. All statements other than statements of historical fact are, or may be deemed to be forward looking statements within the meaning of Section 27A of the U.S. S
Slide 3: Agenda
Agenda John Gilardi Introduction VP Corp Communications and IR Peer Schatz Chief Executive Officer Business and financial update Roland Sackers Chief Financial Officer Q&A session Sample to Insight First quarter 2017 results 3
Slide 4: Q1 2017: Overview
Q1 2017: Overview 1 Solid Q1 2017 performance Key results Change $ / +6% CER adj. net sales growth vs. 4-5% CER outlook In $ millions (Except EPS) Q1 2017 Q1 2016(1) (CER) $0.22 adjusted EPS excl. restructuring charge vs. Net sales 307.7 298.4 +3% (+5%) $0.21-0.22 CER outlook excl. charge Adjust
Slide 5: Q1 2017: Financial review
Q1 2017: Financial review First quarter (In $ millions, unless indicated) (Diluted EPS in $ per share) 2017 2016(1) Change Net sales 307.7 298.4 +3% (+5% CER) Adjusted net sales(2) 308.3 298.4 +3% (+6% CER) Gross profit margin 64% 62% Adjusted gross profit margin 70% 70% Operating income 23.8 16.5 4
Slide 6: Q1 2017: Product type and customer classes
Q1 2017: Product type and customer classes Q1 2017 net sales: $307.7 million Q1 2017 adjusted net sales: $308.3 million Adj. sales % CER % of (In $ m) change sales Consumables and related revenues $274 +7% 89% Instruments $35 -3% 11% Molecular Diagnostics(1) $142 +3% 46% Of which: U.S. HPV test sale
Slide 7: Q1 2017: Geographic regions
Q1 2017: Geographic regions Q1 2017 net sales: $307.7 million Q1 2017 adjusted net sales: $308.3 million Adj. sales % CER % of (In $ m) change sales Americas(1) $143 +3% 46% Europe / Middle East / Africa $101 +7% 33% Asia-Pacific / Japan $64 +10% 21% Americas Europe / Middle East / Africa Asia-Pacif
Slide 8: Q1 2017: Balance sheet and cash flow
Q1 2017: Balance sheet and cash flow Balance sheet data Leverage ratio(1) (As of March 31) 2017 2016 Group liquidity (In $ millions) 273 447 3.3 Net debt (In $ millions) 800 616 Shareholder equity ratio 60% 64% Leverage ratio(1) 1.7x 1.5x 2.2 1.7 1.6 1.3 1.2 Cash flow 1.1 0.9 0.9 (In $ millions) 201
Slide 9: Sample to Insight portfolio
Sample to Insight portfolio Q1 2017 developments Winning large tenders, among recent: Abu Dhabi Health Service QuantiFERON Peer-reviewed studies underscore clinical utility and benefits New GeneReader data highlights strong performance Next-generation sequencing Universal NGS portfolio grows
Slide 10: QuantiFERON
QuantiFERON Increasing clinical evidence and value Q1 2017 highlights 1,400 Number of QuantiFERON-TB Winning tenders around the world 1,200 peer-reviewed publications South Korea 1,000 Abu Dhabi Health Services Company (SEHA) 800 600 – Routine healthcare worker screening 400 – Pre-employment s
Slide 11: GeneReader NGS System
GeneReader NGS System GeneReader presence at AMP Global Berlin Q1 2017 highlights High visibility at AMP Global conference: GeneReader reliability Independent customer validation studies Dartmouth-Hitchcock Medical Centre reaffirming system performance 100% concordance with competitor data “
Slide 12: GeneReader NGS System market positioning
GeneReader NGS System NGS market by application Clinical research market throughput(1) Share of Large WES / Majority of use is Panels No. of laboratories market panels WGS in the mid to low throughput Research 80% 20% 40% 40% Average Clinical research 20% 70% 20% 10% throughput and diagnostics 0 2
Slide 13: GeneReader NGS System: meeting target requirements
GeneReader NGS System QIAGEN Target customer requirements Comp. I Comp. T (1) Actionability 100% 100% 70% 80% Minimum Optimum Integration of bioinformatics 100% 70% 80% Third Strength of Knowledge Base, # publications >30k party >1k Actionable variants detected in panel >700 500 600 Analytical perfo
Slide 14: Differentiated Technologies
Differentiated Technologies Liquid biopsy Microbiome Universal NGS QIAamp MinElute ccfDNA Kit DNeasy / RNeasy / MagAttract QIAseq miRNA EZ1 ccfDNA Kit Power Kits Library Kit Broader automation offering Powerful inhibitor removal Gel-free library preparation Magnetic bead separation Minimal
Slide 15: Q1 2017: Full-year 2017 targets
Q1 2017: Full-year 2017 targets As of May 2, 2017 2017: Adjusted net sales guidance 2017: Adjusted diluted EPS guidance (At CER to comparative year) (In $ per share, at CER to comparative year) ~+6-7% CER ~$1.25-1.27 CER Exiqon +6% CER acquisition $1.11 (June 2016) ~1 p.p. Exiqon and ~2 p.p. OmicSof
Slide 16: Q2 and full-year 2017: Outlook and assumptions
Q2 and full-year 2017: Outlook and assumptions As of May 2, 2017 Q2 2017 outlook Full-year 2017 outlook Adjusted net sales(1) ~+5-6% CER ~+6-7% CER ~$0.28-0.29 CER ~$1.25-1.27 CER Adjusted diluted EPS excluding restructuring charge (2) (Prior year: $0.24) (Prior year: $1.11) After-tax restructuring
Slide 17: New appointment to Supervisory Board
New appointment to Supervisory Board Supervisory Board members Manfred Karobath, M.D. Stéphane Håkan Metin Elaine Ross Lawrence A. Elizabeth E. Bancel Björklund, Ph.D. Colpan, Ph.D. Mardis, Ph.D. Levine, M.D. Rosen Tallett Operating Executive Avista Capital Partners Current Chairman at Swedish O
Slide 18: Summary
Summary Q1 2017: Good performance reaffirms confidence in full-year growth plans Building sales momentum while increasing margins Committed to higher returns and greater value creation Reaffirming 2017 outlook: Executing on targets to deliver higher CER adjusted net sales and adjusted EPS Sample to
Slide 19: Appendix
Appendix Sample to Insight First quarter 2017 results 19
Slide 20: Q1 2017: Consolidated Statements of Income (unaudited)
Q1 2017: Consolidated Statements of Income (unaudited) Three months ended Three months ended (In $ thousands, except share data) March 31, 2017 March 31, 2016 Net sales 307,706 298,379 Adjusted net sales 308,263 298,379 Cost of sales 111,861 113,606 Gross profit 195,845 184,773 Adjusted gross profit
Slide 21: Q1 2017: Reconciliation of adjusted results
Q1 2017: Reconciliation of adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS(1) First quarter 2017 Reported results 307.7 195.8 23.8 16.5 1.2 NM 17.7 0.08 Adjustments Business integration and acqui
Slide 22: Reconciliation of originally reported to revised figures
Reconciliation of originally reported to revised figures In Q4 2016, QIAGEN changed to the "multiple attribution method" accounting principle for equity-based compensation. For the three months ended March 31, 2016, diluted EPS was revised to $0.07 (prior $0.06) due to a modest rounding difference f
Slide 23: Q1 2017: Currency impact
Q1 2017: Currency impact Adj. net sales Adj. net sales Currency exposure Change (In $ m) (CER) (As % of CER sales) (In $ m) First quarter 2017 U.S. dollar 125.7 125.7 40% 0.0 Euro 70.2 72.8 23% -2.6 British pound 20.6 23.8 8% -3.2 Japanese yen 15.5 15.3 5% 0.2 Other currencies 76.3 77.5 24% -1.2 Tot
Slide 24: Q2 and FY 2017: Anticipated adjusted net sales currency impact
Q2 and FY 2017: Anticipated adjusted net sales currency impact Estimated currency impact on adjusted net sales (Based on rates as of April 30, 2017, vs. 2016 CER) Anticipated Q2 2017 Anticipated FY 2017 2016 currency exposure currency impact currency impact (As % of CER sales) (In $ m) (In $ m) U.S.
Slide 25: 2016: Quarterly and FY income statement summary
2016: Quarterly and FY income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2016 Q2 2016 Q3 2016 Q4 2016 FY 2016 Net sales 298.4 334.4 338.7 366.5 1,338.0 Gross profit 184.8 210.8 221.1 228.0 844.7 Gross profit margin 62% 63% 65% 62% 63% Adjusted gross profit 20
Slide 26: 2017: Quarterly and YTD income statement summary
2017: Quarterly and YTD income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 Net sales 307.7 307.7 Net sales (CER) 314.5 314.5 Adjusted net sales 308.3 308.3 Adjusted net sales (CER) 315.1 315.1 Gross profit 195.8 195.8 Gros
Slide 27: 2017: Total adjusted net sales overview
2017: Total adjusted net sales overview Adjusted net sales by customer class (In $ millions at actual rates / Q1 2017 Q2 2017 Q3 2017 Q4 2017 YTD 2017 change in actual, CER rates) Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Molecular Diagnostics 142 0% 3% 142 0% 3% Of
Slide 28: Consolidated Balance Sheets
Consolidated Balance Sheets March 31, Dec 31, March 31, Dec 31, (In $ thousands, except par value) 2017 2016 (In $ thousands, except par value) 2017 2016 Assets (unaudited) Liabilities and Equity (unaudited) Current assets: Current liabilities: Cash and cash equivalents 245,446 439,180 Accounts paya
Slide 29: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) Three months ended Three months ended March 31, March 31, March 31, March 31, (In $ thousands) 2017 2016 (In $ thousands) 2017 2016 Cash flows from operating activities: Cash flows from financing activities: Net income 17,651 15,664 Capital repayment
Slide 30: Key assumptions for 2017
Key assumptions for 2017 2017 key assumptions (As of April 30, 2017) 2017 Capital expenditure (PP&E) ~5% of sales Capital expenditure (Intangibles) ~2-3% of sales (Excluding acquired IP) Depreciation and amortization ~7% of sales (Excluding acquired IP) Amortization of acquired IP ~$110 million (Exc
Slide 31: Employees as of March 31, 2017
Employees as of March 31, 2017 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q1 2017 Q1 2016 Production 249 625 111 985 996 -1% R&D 217 693 42 952 1,023 -7% Sales 607 693 565 1,865 1,813 3% Marketing 62 155 71 288 322 -11% Admin 93 314 64 471 465 1% Total 1,228
Slide 32: Abbreviations
Abbreviations Adj Adjusted EU European Union MN1 Meningioma 1 AIV Avian influenza virus ESBL Extended Spectrum Beta MP Mycoplasma Pneumonia ALK Anaplastic Lymphoma Kinase EUR Euro MRSA Methicillin-Resistant Staphylococcus Aureus AML1 Acute Lymphoblastic Leukemia FDA Food and Drug Administration MTB
Slide 33: Your contacts
Your contacts Download the QIAGEN IR App John Gilardi Dr. Sarah Fakih Alexandra Koenig Vice President Corporate Associate Director Coordinator Communications and IR Investor Relations Investor Relations Phone: +49 2103 29 11711 Phone: +49 2103 29 11457 Phone: +49 2103 29 11709 or +1 240 686 2222 Mob