Slide 1: Investor presentation Q3 2017
Investor presentation Q3 2017 Sample to Insight Investor presentation Q3 2017 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 Introducing QIAGEN Portfolio review Full-year 2016 results Q2 2017 results Appendix Sample to Insight Investor presentation Q3 2017 3
Slide 4: We are experiencing a new age of scientific breakthroughs
WE ARE EXPERIENCING A NEW AGE OF SCIENTIFIC BREAKTHROUGHS We are creating more biological data in 6 months than in all of prior history 1.5B(1) Dramatic scientific advances are enabling breakthroughs in molecular biology (1) Source: Cisco Systems, GenBank and Alliance Bernstein Sample to Insight Inv
Slide 5: We still have to significantly improve how we address pressing challenges
BUT WE STILL HAVE TO SIGNIFICANTLY IMPROVE HOW WE ADDRESS SOME OF THE WORLD’S MOST PRESSING CHALLENGES How can we How can we How can we How can we achieve scientific further improve develop better improve breakthroughs outcomes for and safer drugs? public safety? even faster? patients? We are still
Slide 6: We help customers gain insights to improve healthcare and advance science
QIAGEN solutions empower molecular testing from Sample to Insight Sample Technologies Assay Technologies Bioinformatics Automation systems BIOLOGICAL SAMPLE TO INSIGHT SOLUTIONS VALUABLE SAMPLE MOLECULAR INSIGHTS We help customers gain insights to improve healthcare and advance science Sample to Ins
Slide 7: World leader in molecular testing solutions that enable valuable insights
QIAGEN at a glance 2016 sales by customer class Leader in molecular testing solutions True hybrid covering continuum from Academia Pharma Applied Molecular Diagnostics Testing Life Sciences to Molecular Diagnostics Core capabilities Consumables ~22% ~19% ~9% ~50% Automation systems Infor
Slide 8: QIAGEN's progress accelerating as U.S. HPV headwinds fade away
QIAGEN sales accelerating into new growth trajectory Create a molecular Significant Portfolio Commercial Sustain growth franchise reorganization transformation acceleration and deliver value Sales excl. U.S. HPV U.S. HPV sales Adj. operating income margin $1.34 bn $1.30 bn $1.28 bn $1.17 bn ~3% ~3%
Slide 9: 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow
2020 ambitions Net sales Adjusted EPS Operating cash flow ~+7-9% CER ≥12% CER CAGR CAGR ~$600 m $1,338 m +6% CER $1.11 $340 m 2016 2020 2016 2020 2016 2020 target target target 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow Sample to Insight Investor presentation Q3 2017 9
Slide 10: Disciplined capital allocation
Disciplined capital allocation Reinvest for organic growth Increase returns Targeted M&A / licensing Capture more value from our Commitment to return $300 Continuing our strategy Sample to Insight portfolio million by end of 2017 Novel technologies New products Completion of $245 million
Slide 11: Multiple drivers
+ Maximize sales growth Multiple drivers + Deliver operating leverage Greater + Optimize balance sheet value creation + Strong governance and top talent Adjusted EPS growth = and high returns Committed to higher returns and greater value creation as differentiated leader Sample to Insight Investor p
Slide 12: Summary
Summary Reaccelerating performance after transformation Sustainable sales growth and leverage trajectory Emerging as a stronger, focused, differentiated leader Committed to higher returns and greater value creation Sample to Insight Investor presentation Q3 2017 12
Slide 13: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q2 2017 results Appendix Sample to Insight Investor presentation Q3 2017 13
Slide 14: Differentiated portfolio setting new trajectory for growth and value creation
Sample to Insight solutions: Key highlight areas Sample Technologies Assay Technologies Bioinformatics Automation systems BIOLOGICAL SAMPLE TO INSIGHT SOLUTIONS VALUABLE SAMPLE MOLECULAR INSIGHTS QuantiFERON GeneReader Personalized QIAsymphony Differentiated NGS System Healthcare Technologies and Un
Slide 15: QuantiFERON
QuantiFERON Tuberculin skin test (TST) QuantiFERON-TB (QFT) Manual placement, reading, data entry Can be fully automated Affected by BCG vaccine and NTM Highly specific Two patient visits required Results with one patient visit Significant inter-reader variability No inter-reader var
Slide 16: QuantiFERON
QuantiFERON Total Immune Monitoring: Expand QuantiFERON benefits convertible skin test market: 2020 target: >$300 million sales ~65 million Intensify commercial activities in strategic markets tests annually Automation upgrades to improve workflow North America Continue menu expansion China
Slide 17: QuantiFERON
QuantiFERON Increasing clinical evidence and value Q2 2017 highlights 1,400 Strong sales momentum reaffirming >25% annual Number of QuantiFERON-TB 1,200 peer-reviewed publications growth target 1,000 FDA approval of QuantiFERON Plus, initiating 800 transition to 4th-generation test 600 Reimbur
Slide 18: GeneReader NGS System
GeneReader NGS System Ease of use Reliable results Unique automation Data interpretation QIAcube® GeneRead QIAcube® GeneReaderTM Bioinformatics portfolio 1 2 3 4 5 First complete Predictable Actionable Expertise Flexibility to NGS workflow costs insights and service fit needs The world’s first compl
Slide 19: GeneReader NGS System
GeneReader NGS System NGS market by application Clinical research market throughput(1) Share of Large WES / Panels Majority of use is 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 20: GeneReader NGS System
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 21: Next-generation sequencing: QIAGEN's comprehensive NGS portfolio
Next-generation sequencing QIAGEN’s comprehensive NGS portfolio GeneReader NGS System New system placements around the world Delivering on menu expansion with new Breast and Lung panels for tissue and liquid biopsy samples Initiating Custom Channel for unlimited panel content Technology portfo
Slide 22: Personalized Healthcare
Personalized Healthcare Immuno-oncology: Leveraging GeneReader Q2 2017 highlights Bristol-Myers Squibb-QIAGEN collaboration for NGS-based diagnostics and immuno-oncology therapies Companion and complementary diagnostics First project to develop GEPs (gene expression profiles) as predictive or
Slide 23: QIAsymphony
QIAsymphony Strong expansion in all market segments Q2 2017 highlights Ongoing strong Q2 placements support exceeding 2017 target of >2,000 cumulative placements Increasing value with new FDA-approved menu additions, especially JAK2 assay for blood cancer Continued double-digit CER growth in r
Slide 24: Differentiated Technologies
Differentiated Technologies Innovation at the cutting edge of research Q2 2017 highlights Expanding leadership in liquid biopsy with innovative Liquid biopsy: ~$200 million opportunity product launches including: LB PCR PAXgene Blood ccfDNA System: sample BioX = QIAsymphony automated with stream
Slide 25: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q2 2017 results Appendix Sample to Insight Investor presentation Q3 2017 25
Slide 26: 2016: Quarterly and YTD income statement summary
2016: Quarterly and YTD 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 Net sales (CER) 305.6 338.1 341.8 375.6 1,361.1 Gross profit 184.8 210.8 221.1 228.0 844.7 Gross profit ma
Slide 27: 2016: Balance sheet and cash flow
2016: Balance sheet and cash flow Balance sheet data (As of December 31) 2016 2015 Leverage ratio(1) Group liquidity (In $ millions) 532 421 3.3 Net debt (In $ millions) 537 642 Shareholder equity ratio 61% 61% Leverage ratio(1) 1.2x 1.6x 2.2 1.6 1.3 1.2 Cash flow 1.1 (In $ millions) 0.9 0.9 2016 20
Slide 28: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q2 2017 results Appendix Sample to Insight Investor presentation Q3 2017 28
Slide 29: Q2 2017: Overview
Q2 2017: Overview 1 Strong Q2 results in line with full-year plans Key results Change $ / +7% CER adj. net sales growth vs. 5-6% CER outlook Q2 2017 Q2 2016 (CER) In $ millions (Except EPS) $0.30 adjusted EPS excl. restructuring charge Net sales 349.0 334.4 +4% (+6%) ($0.30 CER) vs. $0.28-0.29 C
Slide 30: Q2 and H1 2017: Product type and customer class
Q2 and H1 2017: Product type and customer class Q2 2017 net sales: $349.0 million H1 2017 net sales: $656.7 million Q2 2017 adj. net sales: $349.6 million H1 2017 adj. net sales: $657.9 million Adj. sales % CER % of Adj. sales % CER % of (In $ m) Change sales (In $ m) change sales Consumables and re
Slide 31: Q2 and H1 2017: Geographic regions
Q2 and H1 2017: Geographic regions Q2 2017 net sales: $349.0 million H1 2017 net sales: $656.7 million Q2 2017 adj. net sales: $349.6 million H1 2017 adj. net sales: $657.9 million Adj. sales % CER % of Adj. sales % CER % of (In $ m) change sales (In $ m) change sales Americas(1) $164 +4% 47% $306 +
Slide 32: Q2 2017 and H1 2017: Reconciliation adjusted results
Q2 2017 and H1 2017: Reconciliation adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS(1) Second quarter 2017 Reported results 349.0 224.6 22.4 12.4 1.6 NM 14.0 0.06 Adjustments Business integration
Slide 33: Q2 2017: Balance sheet and cash flow
Q2 2017: Balance sheet and cash flow Balance sheet data Prudent financing structure (As of June 30) 2017 2016 (As of June 30) Group liquidity (In $ millions) 609 406 2019 Convertible notes Cash and Net debt (In $ millions) 777 669 $430 m short-term investments 2021 $609 m Shareholder equity ratio 55
Slide 34: Q2 2017: Full-year 2017 targets
Q2 2017: Full-year 2017 targets As of July 27, 2017 2017: Adjusted net sales guidance 2017: Adjusted diluted EPS guidance (At CER to comparative year) (In $ per share, at CER to comparative year) ~+7% CER NEW ~$1.25-1.27 CER Exiqon +6% CER acquisition Exiqon $1.11 (June 2016) ~1-2 p.p. (June 2016) M
Slide 35: Q3 and full-year 2017: Outlook and assumptions
Q3 and full-year 2017: Outlook and assumptions As of July 27, 2017 Q3 2017 outlook Full-year 2017 outlook Adjusted net sales(1) ~+7% CER ~+7% CER NEW ~$0.32-0.33 CER ~$1.25-1.27 CER Adjusted diluted EPS excluding restructuring charge(2) (Prior year: $0.29) (Prior year: $1.11) After-tax restructuring
Slide 36: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2016 results Q2 2017 results Appendix Sample to Insight Investor presentation Q3 2017 36
Slide 37: Employees as of June 30, 2017
Employees as of June 30, 2017 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q2 2017 Q2 2016 Production 254 644 112 1,010 1,001 1% R&D 222 696 42 960 1,010 -5% Sales 604 709 590 1,903 1,857 2% Marketing 58 150 69 277 316 -12% Admin 91 321 64 476 454 5% Total 1,2
Slide 38: Global reach into the most attractive geographic markets
Global reach into the most attractive geographic markets Aarhus Manchester Hilden Venlo Redwood Waltham Germantown City Shanghai Shenzhen Hilden, Germany Europe Germantown, Maryland Americas Shanghai Asia-Pacific Sample to Insight Investor presentation Q3 2017 38
Slide 39: 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