Slide 1: Investor presentation Q1 2018
Investor presentation Q1 2018 Sample to Insight Investor presentation Q1 2018 1
Slide 2: Disclaimer
Disclaimer 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. Securities Act of 1933, as amended
Slide 3: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Appendix Sample to Insight Investor presentation Q1 2018 3
Slide 4: The building blocks of life: DNA and RNA
THE BUILDING BLOCKS OF LIFE: DNA AND RNA The molecular revolution is gaining momentum – importance of valuable insights Sample to Insight Investor presentation Q1 2018 4
Slide 5: Addressing the world's most pressing challenges
ADDRESSING 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? Expanding the range of customers who can benefit from molecular solu
Slide 6: Customers rely on QIAGEN to master these challenges
CUSTOMERS RELY ON QIAGEN TO MASTER THESE CHALLENGES Faster Better More efficiently #1 Top 3 Sample Technologies Assay Technologies Bioinformatics Automation systems #1 Top 5 BIOLOGICAL VALUABLE SAMPLE TO INSIGHT SOLUTIONS SAMPLE MOLECULAR INSIGHTS QIAGEN: World leader in molecular testing solutions
Slide 7: QIAGEN: World leader in molecular testing solutions
#1 Top 3 Sample Technologies Assay Technologies Bioinformatics Automation systems #1 Top 5 BIOLOGICAL VALUABLE SAMPLE TO INSIGHT SOLUTIONS SAMPLE MOLECULAR INSIGHTS QIAGEN: World leader in molecular testing solutions that enable valuable insights Sample to Insight Investor presentation Q1 2018 7
Slide 8: Leader in molecular testing solutions
Academia ~23% QIAGEN at a glance Consumables (incl. bioinformatics) Scientific breakthroughs Leader in molecular testing solutions True hybrid covering continuum from ~87% Pharma Life Sciences to Molecular Diagnostics ~19% Better and safer drugs Facts and figures Applied Testing 2017 sales ~$1
Slide 9: QIAGEN delivering value and improving sales
Sales by customer class (As % of annual net sales) Academia 23% 22% 22% Pharma 23% 19% 20% 19% 26% 10% 19% 9% Applied Testing 26% 9% 20% 8% 21% MDx core portfolio 7% 47% 46% 6% 46% 34% 25% 27% 2009 2011 2013 2015 2016 2017 2020 22% 20% 16% U.S. HPV 3% 3% 2% 2009 2011 2013 2015 2016 2017 2020 Total s
Slide 10: QIAGEN going through transformation to focus on growth opportunities
Sales by customer class (As % of annual net sales) 2016-2020 target: ~+7-9% CER CAGR 100% 100% Academia 45% 26% 23% Pharma 19% 21% Applied Testing 6% 10% 2% U.S. HPV 22% 55% MDx core portfolio 46% 25% 2009 2017 2020 QIAGEN going through transformation to focus on attractive growth opportunities CAGR
Slide 11: 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 Q1 2018 11
Slide 12: Disciplined capital allocation
Reinvest for organic growth Capture more value from our Sample to Insight portfolio New products Geographic expansion Increase returns Disciplined Returned $300 million in 2017 capital allocation New commitment in 2018 to return $200 million via repurchases Targeted M&A / licensing Conti
Slide 13: 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 14: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Appendix Sample to Insight Investor presentation Q1 2018 14
Slide 15: Key highlight areas: QIAGEN's Sample to Insight portfolio
Key highlight areas: QIAGEN’s Sample to Insight portfolio Life Molecular Sciences Diagnostics QuantiFERON ✓ Next-generation sequencing ✓ ✓ Powered by Personalized Healthcare ✓ ✓ QIAGEN Bioinformatics QIAsymphony ✓ ✓ Differentiated Technologies Applications including: ✓ ✓ ■ Liquid biopsy ■ Microbiome
Slide 16: QuantiFERON
QuantiFERON 2017 highlights 24% full-year sales growth U.S. launch of 4th-gen QuantiFERON-TB Gold Plus New clinical data confirm patient stratification value of new CD8+ technology Won tenders in South Korea and Middle East Resolved U.S. patent litigation 2018 catalysts QIAGEN-DiaSorin p
Slide 17: 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 18: QuantiFERON
QuantiFERON Immune Monitoring: Expand QuantiFERON benefits Total convertible skin 2020 target: >$300 million sales test market: Intensify commercial activities in strategic markets Automation upgrades to improve workflow ~65 million Continue menu expansion tests annually North America Market
Slide 19: Next-generation sequencing
Next-generation sequencing 2017 highlights Exceeded $115 million CER in annual sales Rapid expansion of “digital NGS” QIAseq multiplex gene panel portfolio for use on any NGS sequencer GeneReader NGS System: Expanding global reach with China MAQGEN joint venture, new customized panels 2018 cat
Slide 20: GeneReader NGS System
GeneReader NGS System Ease of use Unique automation Reliable results Data interpretation QIAcube® GeneRead QIAcube® GeneReader™ 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 comple
Slide 21: 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% Strength of Knowledge Base, # publications >30k Third party >1k Actionable variants detected in panel >700 500 600 Analytical perfo
Slide 22: GeneReader NGS System
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 throughput 20% 70% 20% 10% and diagnostics 0 2
Slide 23: Personalized Healthcare
Personalized Healthcare 2017 highlights Exceeded 25 master collaboration agreements with leading pharma and biotech companies First-ever NGS-based immuno-oncology CDx consortium with Bristol-Myers Squibb First FDA-cleared JAK2 test for blood disorders Ongoing growth of PCR-based CDx tests 20
Slide 24: QIAsymphony
QIAsymphony 2017 highlights Significantly exceeded 2,000 cumulative placements Successful regionalization strategy (22 CE-IVD tests, 5 FDA-cleared assays) Very positive customer response to new liquid biopsy automation protocols New front-end solution for GeneReader NGS System 2018 catalysts
Slide 25: Differentiated Technologies
Differentiated Technologies 2017 highlights Strengthening No. 1 leadership position in liquid biopsy sample processing ~75% market share in microbiome sample processing, full integrated POWER kits Absolute leadership in Epigenetics Exiqon long-read RNA applications New microRNA application
Slide 26: STAT-Dx acquisition and QIAstat-Dx
STAT-Dx acquisition and QIAstat-Dx Access to novel multiplex platform Next generation of molecular multiplex syndromic testing technology Drive dissemination of molecular testing QIAstat-Dx: Preparing for CE-IVD launch in H2 2018, U.S. in 2019 Two initial panels: respiratory and gastrointe
Slide 27: STAT-Dx acquisition and QIAstat-Dx
STAT-Dx acquisition and QIAstat-Dx Access to novel multiplex platform QIAstat-Dx Sample to Insight One-step diagnostic solution ✓ Broad menu Two syndromic assays at launch, other tests in development ✓ Ease of use 1-minute hands-on time ✓ Versatility Sample input flexibility to process swabs and com
Slide 28: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Appendix Sample to Insight Investor presentation Q1 2018 28
Slide 29: Full-year 2017: Overview
Full-year 2017: Overview 1 Achieved full-year 2017 targets with solid Q4 results Key results +7% CER adj. net sales growth excl. business portfolio change In $ millions (Except EPS) FY 2017 FY 2016 Change $ / (CER) vs. ~+7% CER outlook Net sales 1,417.5 1,338.0 +6% (+6%) $1.27 adjusted EPS ($1.2
Slide 30: Q4 and FY 2017: Financial review
Q4 and FY 2017: Financial review Fourth quarter Full-year (In $ millions, unless indicated) (Diluted EPS in $ per share) 2017 2016 Change 2017 2016 Change Net sales 396.9 366.5 8% (5% CER) 1,417.5 1,338.0 6% (6% CER) Adjusted net sales(1) 397.1 366.5 8% (6% CER) 1,419.4 1,338.0 6% (6% CER) Adj. net
Slide 31: Q4 and FY 2017: Product type and customer class
Q4 and FY 2017: Product type and customer class Q4 2017 net sales: $396.9 million FY 2017 net sales: $1.418 billion Q4 2017 adj. net sales: $397.1 million FY 2017 adj. net sales: $1.419 billion Adj. Sales (In $ m) % CER change % of sales Adj. Sales (In $ m) % CER change % of sales Consumables and re
Slide 32: Q4 and FY 2017: Geographic regions
Q4 and FY 2017: Geographic regions Q4 2017 net sales: $396.9 million FY 2017 net sales: $1.418 billion Q4 2017 adj. net sales: $397.1 million FY 2017 adj. net sales: $1.419 billion Adj. Sales (In $ m) % CER change % of Adj. Sales (In $ m) % CER change % of sales sales Americas(1) $176 +7% 44% $655 +
Slide 33: FY 2017: Balance sheet and cash flow
FY 2017: Balance sheet and cash flow Balance sheet data (As of December 31) 2017 2016 Leverage ratio(1) Group liquidity (In $ millions) 1,017 532 Net debt (In $ millions) 743 537 3.3 Shareholder equity ratio 50% 61% Leverage ratio(1) 1.5x 1.2x 2.2 1.6 1.5 1.3 1.2 0.9 1.1 Cash flow 0.9 (In $ millions
Slide 34: Q1 and Full-year 2018: Outlook
Q1 and Full-year 2018: Outlook As of January 31, 2018 2018: Adjusted net sales outlook Full-year 2017 results Full-year 2018 assumptions Sales in $ millions Organic growth in net sales(1) +5% CER +~6-7% CER + Divestment: Business portfolio changes $25 ~$7 + 2017 acquisition contributions: Exiqon and
Slide 35: Q1 and FY 2018: Outlook and assumptions
Q1 and FY 2018: Outlook and assumptions As of January 31, 2018 Q1 2018 outlook Full-year 2018 outlook Adjusted net sales(1) ~+5% CER ~+6-7% CER ~$0.23-0.24 CER ~$1.31-1.33 CER Adjusted EPS(2) (Prior year: $0.22) (Prior year: $1.27) Adjustments to operating income (in $ millions): Purchased intangibl
Slide 36: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Appendix Sample to Insight Investor presentation Q1 2018 36
Slide 37: Global reach into the most attractive geographic markets
Global reach into the most attractive geographic markets Aarhus Manchester Hilden Venlo Waltham Redwood City Germantown Shanghai Shenzhen Hilden, Germany Europe Germantown, Maryland Americas Shanghai Asia-Pacific Sample to Insight Investor presentation Q1 2018 37
Slide 38: Executive Committee
Executive Committee CEO Commercial Operations Peer Schatz Manuel O. Méndez Executive Committee Molecular Diagnostics CFO Thierry Bernard Roland Sackers Operations Life Science Mark Gladwell Thomas Schweins Human Resources Bioinformatics Annette Koch Jonathan Sheldon Development(1) Business Developme
Slide 39: Employees as of December 31, 2017
Employees as of December 31, 2017 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q4 2017 Q4 2016 Production 279 679 123 1,081 996 9% (1) R&D 218 691 44 953 995 -4% Sales 592 718 575 1,885 1,909 -1% Marketing 66 154 58 278 308 -10% (2) Administration 90 325 76 49
Slide 40: 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 Mobile: +49 152 018 11