Qiagen N.v. · NYSE:QGEN
Qiagen — Shareholder Meeting (June 2019)
57 slides from Qiagen's shareholder meeting presentation, Jun 17, 2019
Slide 1: 2018 Annual General Meeting
Picture to be updated 2018 Annual General Meeting June 17, 2019 Venlo, the Netherlands Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 1
Slide 2: Opening
1 Dr. Håkan Björklund Opening Chairman of the Supervisory Board Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 2
Slide 3: Managing Board Report for Calendar Year 2018
2 Managing Board Report for the year ended December 31, 2018 (“Calendar Year 2018”) Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 3
Slide 4: 2018 Annual General Meeting – Peer M. Schatz, CEO
2018 Annual General Meeting June 17, 2019 Venlo, the Netherlands Peer M. Schatz Chief Executive Officer Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 4
Slide 5: 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 6: The Building Blocks of Life
THE BUILDING BLOCKS OF LIFE: CUSTOMERS RELY ON QIAGEN FOR DNA AND RNA MOLECULAR TESTING SOLUTIONS Sample Assay Bioinformatics technologies technologies Automation systems Sample to Insight QIAGEN: World leader in molecular testing solutions that advance science and improve outcomes for patients Samp
Slide 7: Addressing the World's Most Pressing Challenges
ADDRESSING THE WORLD’S MOST PRESSING CHALLENGES Academia How can we achieve scientific breakthroughs even faster? Pharma How can we develop better and safer drugs? Applied Testing How can we improve public safety? Molecular Diagnostics How can we further improve outcomes for patients? Expanding rang
Slide 8: Customer Classes and Product Portfolio
QIAGEN customer classes Product portfolio Global presence 2018 net sales (% of total QIAGEN sales) 2018 net sales (% of total QIAGEN sales) 2018 net sales (% of total QIAGEN sales) Molecular Academia/ Diagnostics Americas Europe / Applied Testing Middle East / ~32% Africa ~33% ~49% Life ~12% ~88% ~4
Slide 9: 2018 Achievements
Levers 2018 achievements Delivering on targets Sales Applying novel approaches to customer engagement Focusing portfolio (e.g. China strategy and veterinary assays divestment) Emerging disruptive portfolio QuantiFERON-TB: +21% CER growth, new automation partners Sample to Insight QIAsymphony
Slide 10: Life Sciences Customer Class
Life Sciences customer class ~20% market share Academia ~$4 billion addressable market 2018 sales of $770 million ~4% CER Recognized innovator supporting breakthrough science Pharma market growth Ability to translate innovations into commercial products Applied Testing Selected products Sample
Slide 11: Universal NGS Portfolio
Case study: Industry-leading portfolio for any sequencer Universal NGS (UNGS) solutions Advances in QIAGEN’s Universal NGS portfolio QIAseq Tumor Mutational Burden Panel Assay solutions based on proprietary Digital NGS technology – Target enrichment – Library preparation Bioinformatics New:
Slide 12: New Digital PCR Platforms
Case study: Reinventing digital PCR New QIAGEN digital PCR platforms Acquisition of digital PCR technology from Formulatrix New instrument range in late-stage development by QIAGEN Commercialization planned for 2020 Fully integrated microplate-based platform series Greatly simplified workf
Slide 13: Molecular Diagnostics Customer Class
Molecular Diagnostics customer class ~15-20% market share ~$4-5 billion addressable market 2018 sales of $732 million Focus on high-growth, high-demand opportunities Molecular ~6-7% CER market growth Significant automation portfolio expansion in 2018 Diagnostics Multi-year assay menu develop
Slide 14: Molecular Testing Technologies
Pre-molecular immuno-assays Real-time PCR technology NGS technology Low-plex Multiplexing capabilities High-plex High Sample throughput Low QuantiFERON-TB NeuMoDx QIAsymphony GeneReader QIAstat-Dx Automation alliances N96 / N288 RGQ NGS System Most comprehensive portfolio to address demands for vari
Slide 15: QIAstat-Dx
Case study: Next-generation system for syndromic testing QIAstat-Dx Addressing a ~$800 million market opportunity EU launch in mid-2018 after STAT-Dx acquisition(1) U.S. launch under way after May 2019 FDA clearance Differentiation: Ease of use, PCR-based system and cost efficiency Selected
Slide 16: NeuMoDx 96 / 288
Case study: Disruptive PCR technology for integrated testing NeuMoDx 96 / 288 Entering ~$2.7 billion market Synergistic with QIAGEN’s strong positioning in this lab testing segment 2018 EU launch, complements QIAsymphony (modular segment) Differentiation: Speed, full random access, walk-away
Slide 17: 2019 Precision Medicine Highlights
2019 Precision Medicine highlights New U.S. CDx assays addressing critical cancers therascreen PIK3CA and FGFR: First FDA approvals for key CDx ~40% have mutations in Novel therapies qualifying patients for prescription drugs ~66,500 PIK3CA LabCorp joins QIAGEN’s Day-One Lab Readiness program
Slide 18: Looking Ahead to 2019
Looking ahead to 2019: Delivering on growth opportunities from a dynamic and disruptive portfolio of Sample to Insight solutions Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 18
Slide 19: Sustainability Update
Sustainability update Green development Non-financial information Corporate citizenship Conversion of ~150 tons from air Reporting information based on: ~1,500 hours of volunteer work by U.S. freight to sea freight during 2018 colleagues in 2018 Sustainability Reporting Standards Installat
Slide 20: Success Factor: Employees
Success factor: Employees Global workforce Diversity Employee development ~5,000 employees Diversity Ambassador program ~4,900 employees participated in virtual, introduced with >20 leaders worldwide instructor-led and e-learning courses ~70 nationalities Advocating diversity with training
Slide 21: Corporate Governance
Corporate governance About QIAGEN N.V. Endorsing relevant principles Organized under the laws of Netherlands Application of Dutch Corporate Governance Code Listed on NYSE (New York) NYSE Corporate Governance Rules Member of TecDAX Index (Frankfurt) and MDAX Sample to Insight QIAGEN Annual
Slide 22: Investor Relations
Investor Relations Analyst ratings 2018 IR activities Private shareholder day: ~25 participants 32% Institutional conferences: ~30 events Buy 48% Individual meetings: ~650 meetings Analyst & Investor Day: June 20, 2019 68% Hold 52% Sell 0% 0% 2018 2017 Sample to Insight QIAGEN Annual General
Slide 23: 2018: QIAGEN Shares (Frankfurt)
2018: QIAGEN shares (Frankfurt) QIAGEN share price development – Frankfurt Stock Exchange (euros) QIAGEN (Frankfurt) TecDAX Year-End: EUR 29.68 50% 40% 30% 20% 13.3% 10% 0% -3.1% (10%) (20%) Jan Apr Jun Sep Dec 2018 Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 23
Slide 24: 2018: QIAGEN Shares (NYSE)
2018: QIAGEN shares (NYSE) QIAGEN share price development – NYSE (U.S. dollars) QIAGEN (NYSE) NASDAQ Biotech Index Year-End: $34.45 50% 40% 30% 20% 10% 11.4% 0% (10%) -9.3% (20%) Jan Apr Jun Sep Dec 2018 Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 24
Slide 25: Summary
Summary to be updated QIAstat Sample to Insight portfolio driving transformation Moving ahead on sustainable growth and leverage trajectory Building a strong foundation to excel toward 2020 and beyond Committed to higher returns and greater value creation Sample to Insight QIAGEN Annual General Meet
Slide 26: Annual General Meeting – Roland Sackers, CFO
2018 Annual General Meeting June 17, 2019 Venlo, the Netherlands Roland Sackers Chief Financial Officer Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 26
Slide 27: 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 28: 2018: Overview
2018: Overview (U.S. GAAP adjusted) 1 Achieved 2018 target for net sales, exceeded on adjusted EPS Net sales Adjusted EPS(1) +6% net sales growth (+6% CER vs. ~+6-7% CER outlook) (In $ millions, at actual rates) (In $ per share) $1.34 adjusted EPS ($1.35 CER vs. ~$1.33-1.34 CER outlook) 27% ad
Slide 29: 2018: Financial Review
2018: Financial review (U.S. GAAP adjusted) Full-year In $ millions, unless indicated (Diluted EPS in $ per share) 2018 2017 Change Net sales 1,501.8 1,417.5 6% (6% CER) Gross profit margin 67% 65% Adjusted gross profit margin 71% 71% Operating income 266.6 153.4 74% Operating income margin 18% 11%
Slide 30: 2018: Product Type and Customer Classes
2018: Product type and customer classes FY 2018 net sales: $1,501.8 million Sales % % CER % (In $ m) change change of sales Consumables and related revenues $1,315 +6% +6% 88% Instruments $186 +7% +6% 12% Molecular Diagnostics(1) $732 +7% +8% 49% Applied Testing $137 0% 0% 9% Pharma $291 +6% +5% 19%
Slide 31: 2018: Geographic Regions
2018: Geographic regions FY 2018 net sales: $1,501.8 million Sales % % CER % (In $ m) change change of sales Americas $693 +6% +6% 46% Europe / Middle East / Africa $490 +6% +6% 33% Asia-Pacific / Japan $315 +6% +5% 21% Full-year 2018: Solid growth across all regions (+6% CER) and top 7 emerging mar
Slide 32: 2018: Reconciliation Adjusted Results
2018: Reconciliation adjusted results (U.S. GAAP) In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS Full-year 2018 Reported results 1,501.8 1,001.0 266.6 225.7 -35.4 16% 190.4 0.82 Adjustments Business integration,
Slide 33: 2018: Review of U.S. GAAP and IFRS Results
2018: Review of U.S. GAAP and IFRS results Consolidated Income Statements for the year ended December 31, 2018 Reconciliation of net income from U.S. GAAP to IFRS (In $ millions) 190.4 -66 104.9 -7 -3 -9 124 117 114 105 2018 Revaluation of Other Intangibles Tax impacts(2) 2018 U.S. GAAP upper calls(
Slide 34: 2018: Review of U.S. GAAP and IFRS Results
2018: Review of U.S. GAAP and IFRS results Consolidated Income Statements for the year ended December 31, 2018 Difference In $ millions U.S. GAAP IFRS (U.S. GAAP (Except per share data) 2018 2018 vs. IFRS) Net sales 1,501.8 1,501.8 Gross profit 1,001.0 992.8 8.2 Income from operations 266.6 272.5 -5
Slide 35: 2018: Balance Sheet and Cash Flow
2018: Balance sheet and cash flow (U.S. GAAP) Balance sheet data (As of December 31 ) 2018 2017 Leverage ratio(1) Group liquidity (In $ millions) 1,394 1,017 Net debt (In $ millions) 781 743 3.3 Shareholder equity ratio 46% 50% Leverage ratio(1) 1.4x 1.5x 2.2 1.6 1.5 1.3 1.4 1.1 1.2 Cash flow 0.9 0.
Slide 36: Capital Allocation Strategy
Capital allocation strategy Reinvest for organic growth Disciplined capital allocation Increase returns through share repurchase programs Targeted M&A / licensing Disciplined capital allocation: Ongoing commitment to increasing returns Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 3
Slide 37: Debt Composition and Maturity Profile
Debt composition and maturity profile Structure as of March 31, 2019 Maturities of debt instruments (In $ millions) 700 Cash and 634 short-term Cash and 27 600 investmentsshort-term Convertible 107 Bonds investments $780 million$609 m 500 469 2021 2023 2024 400 400 336 39 300 300 Net debt Net debt 5
Slide 38: Employees as of December 31, 2018
Employees as of December 31, 2018 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q4 2018 Q4 2017 Production 277 656 134 1,067 1,020 5% R&D 231 775 50 1,056 985 7% Sales 559 762 669 1,990 1,883 6% Marketing 77 155 76 308 278 11% Administration 86 322 123 531 491
Slide 39: Summary
Summary Strong focus on execution and performance 2018: Delivered on objectives and created a stronger company 2019: Set to generate a solid performance Committed to higher returns and disciplined capital deployment Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 39
Slide 40: Annual Accounts Report
3 a. Supervisory Board Report on the Company’s Annual Accounts (the “Annual Accounts”) for Calendar Year 2018 b. Report of the Compensation Committee of the Supervisory Board for Calendar Year 2018 Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 40
Slide 41: Adoption of the Annual Accounts for Calendar Year 2018
4 Adoption of the Annual Accounts for Calendar Year 2018 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 41
Slide 42: Reservation and dividend policy
5 Reservation and dividend policy Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 42
Slide 43: Discharge of the Managing Directors
6 Discharge from liability of the Managing Directors for the performance of their duties during Calendar Year 2018 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 43
Slide 44: Discharge of the Supervisory Directors
7 Discharge from liability of the Supervisory Directors for the performance of their duties during Calendar Year 2018 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 44
Slide 45: Reappointment of Supervisory Directors
8 Reappointment of the following seven Supervisory Directors of the Company for a one year term ending at the close of the Annual General Meeting in 2020 (voting item) a. Mr. Stéphane Bancel b. Dr. Håkan Björklund c. Dr. Metin Colpan d. Prof. Dr. Ross L. Levine e. Prof. Dr. Elaine Mardis f. Mr. Lawr
Slide 46: Supervisory Board Members
Supervisory Board members Dr. Håkan Björklund Chairman Stéphane Bancel Metin Colpan, Ph.D. Elaine Mardis, Ph.D. Joined 2017 Joined 2013 Joined 2004 Joined 2014 Ross Levine, M.D. Lawrence A. Rosen Elizabeth E. Tallett Joined 2016 Joined 2013 Joined 2011 Six new Board members appointed since 2011 with
Slide 47: Reappointment of Managing Directors
9 Reappointment of the following two Managing Directors of the Company for a term ending on the date of the Annual General Meeting in 2020 (voting item) a. Mr. Peer M. Schatz b. Mr. Roland Sackers Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 47
Slide 48: Reappointment of KPMG Accountants N.V.
10 Reappointment of KPMG Accountants N.V. as auditors of the Company for the calendar year ending December 31, 2019 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 48
Slide 49: Authorization to Issue Shares
11 Authorization of the Supervisory Board, until December 17, 2020 to: a. issue a number of Common Shares and financing preference shares and grant rights to subscribe for such shares, the aggregate par value of which shall be equal to the aggregate par value of fifty percent (50%) of shares issued
Slide 50: Authorization to Restrict Pre-emptive Rights
11 Authorization of the Supervisory Board, until December 17, 2020 to: b. restrict or exclude the pre-emptive rights with respect to issuing Common Shares or granting subscription rights, the aggregate par value of such shares or subscription rights shall be up to a maximum of ten percent (10%) of t
Slide 51: Authorization for Strategic Transactions
11 Authorization of the Supervisory Board, until December 17, 2020 to: c. solely for the purpose of strategic transactions such as mergers, acquisitions or strategic alliances, to restrict or exclude the pre-emptive rights with respect to issuing additional Common Shares or granting subscription rig
Slide 52: Authorization to Acquire Own Shares
12 Authorization of the Managing Board, until December 17, 2020, to acquire shares in the Company’s own share capital (voting item) Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 52
Slide 53: Amend Articles of Association
13 Resolution to amend the Company's Articles of Association (voting item) Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 53
Slide 54: Questions
14 Questions Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 54
Slide 55: Closing
15 Closing Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 55
Slide 56: Thank you
Thank you Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 56
Slide 57: QIAGEN Private Investor Day 2019
Wir möchten Sie herzlich zu unserem QIAGEN Private Investor Day 2019 am 27. September 2019 von ca. 11:00 – 16:00 bei QIAGEN in Hilden, Deutschland einladen Kontakt: Alexandra König +49 2103 29 11709 E-Mail: alexandra.koenig@qiagen.com Sample to Insight QIAGEN Annual General Meeting, June 17, 2019 57