Illumina, Inc. · NASDAQ:ILMN
Illumina — J.P. Morgan 39th Annual Healthcare Conference (January 2021)
29 slides from Illumina's conference presentation, Jan 11, 2021
Slide 1: J.P. Morgan 39th Annual Healthcare Conference
J.P. Morgan39th Annual Healthcare Conference Francis deSouza President & Chief Executive Officer January 11, 2021
Slide 2: Cautionary Notes on Forward-Looking Statements
Cautionary Notes on Forward-Looking Statements This presentation contains “forward-looking statements ”within the meaning of the federal securities laws, including Section27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934,as amended. In this context
Slide 3: Pandemic Highlights Sequencing's Essential Role in Global Health
Pandemic Highlights Sequencing’s Essential Role in Global Health Identified novel coronavirus Enabled development of vaccines and PCR-based tests Identification of new strains and transmission tracking 3
Slide 4: Illumina Had a Strong Close to 2020
Illumina Had a Strong Close to 2020 -9% ~$3,236M YoY Preliminary 2020 Results ~$950M ~$1.20 Preliminary Q4 2020 Results $ Millions Non-GAAP EPS QoQ -10% -26% +26% +20% YoY 2% -25% -12% Flat ~$1.71 GAAP EPS 4 Record Orders Revenue Revenue
Slide 5: Robust 2020 Instrument Placements
Robust 2020 Instrument Placements NovaSeq™ ~185 MiSeq™ ~655 NextSeq™ 2K/1K ~255 NextSeq™ 550 ~380 MiniSeq™ ~195 iSeq™ ~380 >17,000 2020 Shipments RECORD NEXTSEQ SHIPMENTS 5 >2,000 Installed Base >7,300 Global Customers NovaSeqTM is Our Most Successful Sequencer in History 1st sequencerto exceed $1B
Slide 6: NovaSeq is Our Most Successful Sequencer in History
NovaSeq™ is Our Most Successful Sequencer in History Installed base — 4st =| >1,100 sequencer a to exceed 1 E annual Record revenue and revenue customers in 04 2022 launch illumina’ 2020 pull through Active HiSeq customers yet to transition >1.2
Slide 7: Successful NextSeq 2000 Launch; Strong Demand
Succ essful NextSeqTM 2000 Launch; Strong 550 Demand SHIPPING 2H 2021 Record~635 NextSeq Shipments ~165New-to-NGScustomers >50%Clinical customers P1 Flow Cell 20-40Gb Output 40%NextSeq 2K/1K 35%NextSeq 550 25%NextSeq Dx 7
Slide 8: Low Throughput Systems Remain Key NGS Entry Point
Low Throughput Systems Remain Key NGS Entry Point >500 New customers >10K Installed base 21 IVD partners >6,100 Customers in 122 Countries 8 Major Population Initiatives Scale Up in 2021 Whole genome equivalents 2021+40% vs 2020 2020 2021E ~300,000WGE1 ~450,000WGE WGE = Whole Genome Equivalent, assu
Slide 9: Major Population Initiatives Scale Up in 2021
Major Population Initiatives Scale Up in 2021 t) ~50 %o AB, Commenced 0420, ramping 2021 ~300,000 WiobaMNk® continuing into 2H 2021 WcE! >2QQ —_ Prosrams contributing revenue in 2021 illumina’
Slide 10: Illumina Connected Analytics
Select Customers 50x FasterMapping/variant calling for WGS ~5x Lower Data footprint from compression Analyze Interpret Aggregate Explore Share Sequencing Announcing Illumina Connected Analytics to Power Multi-Omics Discovery at Massive Scale POPULATION GENOMICS RESEARCH INSTITUTES CLINICAL TESTING L
Slide 11: Illumina is a Leader in Clinical Genomics
Ill um ina is a L eader in Clinical Genomics >$1.5B 2020 Clinical revenue 37 IVD partners 56 Countries with IVDs >130 Channel partners >2100 Clinical employees ~$3B Invested in R&D over last 5 years 11
Slide 12: Coverage Decisions Drive U.S. NIPT Growth
Coverage Decisions Drive U.S. NIPT Growth 12 >1MAdditional pregnancies covered by end of 2021 IVD approval expected 2022 Guidelines updated to endorse average risk U.S. Covered Pregnancies (Millions) WashingtonIllinoisConnecticutMarylandOthers TexasNew York OregonWisconsin TruSightTM Software SuiteN
Slide 13: Expanding Coverage and Illumina Solutions Drive Whole Genome Sequencing
Expanding Coverage and Illumina Solutions Drive Whole Global WGS Coverage (Millions) enome Sequencing for Genetic Disease Testin 4 2019 Total 2020 Additions illumina Illumina 30 Solutions $24 sour WGS Turnaround >400 tars Using NGS for GOT 2021 Additions 2021 Total WS TruSight™ Software Suite vaSeq™
Slide 14: Growing Adoption of Comprehensive Genomic Profiling in Oncology
Growing Adoption of Comprehensive Genomic Profiling in Oncology 205MU.S. Covered LivesVs 174M 2019 61%Of clinal trials are biomarker driven (2019) >25%CAGREstimate for CGP by 2025 55+Oncology therapies require genomic CDX testing 14 Target Examples of drug in market TMB / MSI HRD EGFR NTRK 1/2/3 Fus
Slide 15: TSO is a Market Leading Distributable CGP Panel
TSO 500 is a Market Leading Distributable CGP Panel +130%2020 Revenue Growth 250+Global Customers HRD IVD LaunchEU and U.S. in 2021 TSO 500 Tissue/Liquid Biopsy Collaboration Partners NEW PHARMA PARTNERSHIPS EXISTING CDX PARTNERSHIPS 15
Slide 16: Achieved Key Technology Breakthroughs
Ac hieved Key Technology Breakthroughs Towards Next Order of Magnitude Improvements 90% Reduction in flow cell COGS achievable Breakthrough SBS improvements and IP 5x Increased density 2x Flow cell / wafer300mm wafer with nanoimprint lithography Pushing the boundaries of cluster density and nanofabr
Slide 17: Illumina SBS Uniquely Delivers Accuracy, Scale and Price
Cost of H igh Accuracy 30X Human Genome Illumina SBS Uniquely Delivers Accuracy, Scale and Price Required to Make Human WGS Routine 2014 Today In Development CURRENT LIST PRICE $10,000 $1,000 $100 $100 $1000 Up to 80xPrice difference $600 >10XPrice difference 1/3 Genome / run >48 Genomes / run Long
Slide 18: Applying AI to World's Largest Genomic Dataset
Applying AI to World’s Largest Genomic Dataset to Enable More Customer Applications 18 2020 Launched Pharmacogenomics >99.0% Accuracy in CYP2D6 Repeat expansions >97.3% Sensitivity in tandem repeats99.6% Specificity in tandem repeats Gene paralogs >99.7% Accuracy in SMA genes In Development PrimateA
Slide 19: Multi-omics Growth Driving Demand for Illumina Sequencing
Multi-omics Growth Driving Demand for Illumina Sequencing Transcriptome Epigenetics Immunome Gene Editing Proteome Somatic DNA Proteins Methylation Spatial Single cell Germline RNA Synthetic Bio 19
Slide 20: 2021 Financial Guidance
2021 Financial Guidance $3.79B – $3.88BFY21 Revenue Guidance ~24%Operating Margin 17 % – 20%Revenue Growth $5.10 – $5.35Non-GAAP EPS Growth at Guidance Midpoint ~20%Sequencing ~20%Sequencing Consumables ~33%Sequencing Instruments ~5%Arrays 20 Note: Illumina 2021 financial guidance excludes the pendi
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Slide 22: Early Cancer Detection Saves Lives
Early Cancer Detection Saves Lives 22 Low 5-year cancer-specific mortalitywhen diagnosed early High 5-year cancer-specific mortalitywhen diagnosed late 79%Distant Metastases 11%Localized 71% of cancer-related deaths today are in cancers with no recommended screening
Slide 23: Galleri is Pioneering Multi-Cancer Early Detection
GalleriTM is Pioneering Multi-Cancer Early Detection 100K+ ParticipantsParticipants in prospective clinical trials 400 PatentsIssued or pending 67% Sensitivity In 12 deadliest cancers <1%False positives Launching 2H 2021 Launching Q2 2021 23
Slide 24: GRAIL Announces New MRD Pharma Collaborations
GRAIL Announces New MRD Pharma Collaborations 24 New Collaborators
Slide 25: Illumina in 2021
Illu mina in 2021 Sequencing Strength Pending GRAIL Acquisition Clinical Momentum 25
Slide 26: Appendix
illumina’
Slide 27: Preliminary Results of Operations – Non-GAAP
Illumina, Inc.Preliminary Results of Operations – Non-GAAP(unaudited) Our performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the preliminary results set forth below. Some of the factors that could affect our financial results are
Slide 28: Preliminary Results of Operations – Non-GAAP - Continued
Illumina, Inc.Preliminary Results of Operations – Non-GAAP - Continued(unaudited) (a) Non-GAAP diluted earnings per share attributable to Illumina stockholders exclude the effect of the pro forma adjustments as detailed above. Non-GAAP diluted earnings per share attributable to Illumina stockholders
Slide 29: Reconciliation of Non-GAAP Financial Guidance
Illumina, Inc.Reconciliation of Non-GAAP Financial Guidance(unaudited) Our future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the guidance set forth below. Some of the factors that could affect our financial results are in
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