Illumina, Inc. · NASDAQ:ILMN
Illumina — Investor Presentation (February 2016)
22 slides from Illumina's investor presentation, Feb 26, 2016
Slide 1: Illumina Investor Presentation
Illumina Investor Presentation February 26, 2016 © 2016 Illumina, Inc. All rights reserved. Illumina, 24sure, BaseSpace, BeadArray, BlueFish, BlueFuse, BlueGnome, cBot, CSPro, CytoChip, DesignStudio, Epicentre, ForenSeq, Genetic Energy, GenomeStudio, GoldenGate, HiScan, HiSeq, HiSeq X, Infinium, iSc
Slide 2: Safe Harbor Statement
Safe Harbor Statement This communication may contain statements that are forward-looking. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected o
Slide 3: Our Mission
Our Mission To improve human health by unlocking the power of the genome 3
Slide 4: Markets Served
Markets Served Innovation drives expanding market opportunities Agriculture BioPharm Genetic Forensics Health Complex Disease Infectious Disease Consumer Population Genetics Research Reproductive Health Cancer 4
Slide 5: Illumina's >$20B Market
Illumina’s >$20B Market Large and untapped opportunities1 New and ~$1B Emerging Life Sciences ~$5B Reproductive and ~$2B Genetic Health Oncology2 ~$12B 1. Shaded areas represent estimated market penetration percentages 2. Not included in figure is GRAIL’s total market opportunity between $20B-$200B;
Slide 6: Sequencing Power for Every Scale
Sequencing Power for Every Scale The broadest portfolio offering available MiniSeq MiSeq NextSeq HiSeq HiSeq X 2500 4000 X Five X Ten Output per Run: 7.5 Gb 15 Gb 120 Gb 1 Tb 1.5 Tb 1.8 Tb 1.8 Tb Instrument Price: $49.5K $99K $250K $690K $900K $6M1 $10M1 $ Price/Gb: $200 $93 $33 $29 $20 $10.5 $7 Uti
Slide 7: Driving Innovative Sequencing Technology
Driving Innovative Sequencing Technology Breakthrough technology enables lower sequencing costs 3000 $100M 2500 $10M Moore’s Law $1M 2000 $100K 1500 HiSeq X Ten Launched 1000 $10K $1K 500 $1,000 $1000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 7
Slide 8: Leveraging Our Technology
Leveraging Our Technology Integrated workflows from sample-to-answer Library Prep Sequence Answer SEAMLESS WORKFLOW SOLUTIONS ENABLE MARKETS Flexible, Simplified Custom Integrated economical library prep content analysis sequencing 8
Slide 9: Product & Customer Diversity
Product & Customer Diversity Robust recurring revenue with balanced customer base1 Revenue by Product/Service Shipments By Geography Asia Pacific Consumables 17% 58% Europe 25% Americas Instrument 58% 27% Service / other 15% Shipments by Segment Clinical2 vs Non-Clinical Shipments Academic & Clinica
Slide 10: Fourth Quarter Results
Fourth Quarter Results Another quarter of revenue growth Revenue Non-GAAP EPS1 Non-GAAP Non-GAAP ($ in millions) gross margin2 operating margin2 $592 $512 $0.87 72.3% 37.7% $0.81 71.7% 33.4% 15% Increase3 7% 60 430 Decrease bps bps Q4’14 Q4’15 Q4’14 Q4’15 Q4’14 Q4’15 Q4’14 Q4’15 1. Non-GAAP attribut
Slide 11: Fiscal Year 2015 Results
Fiscal Year 2015 Results Another year of robust top- and bottom-line growth Revenue Non-GAAP EPS1 Non-GAAP Non-GAAP ($ in millions) gross margin2 operating margin2 $2,220 $3.32 $1,861 $2.74 72.4% 71.7% 36.9% 36.4% 19% 21% Increase3 70 Increase bps 50 bps FY’14 FY’15 FY’14 FY’15 FY’14 FY’15 FY’14 FY’
Slide 12: Strong Balance Sheet / Cash Flow
Strong Balance Sheet / Cash Flow Cash flow generation funds strategic opportunities Cash Flow from Cash and Short- Free Cash Flow Operations term Investments ($ in millions) ($ in millions) ($ in millions) $660 $517 $1,386 $1,338 $501 $395 32% 31% 4% Increase Increase Increase As of As of FY’14 FY’1
Slide 13: Superior Revenue & Non-GAAP EPS Expansion
Superior Revenue & Non-GAAP EPS Expansion Innovation drives profitable growth $2,500 Revenue CAGR: 20% $3.50 $3.00 $2,000 EPS CAGR1: 26% Revenue ($millions) Non-GAAP EPS1 $2.50 $1,500 $2.00 $1.50 $1,000 $1.00 $500 $0.50 $0 $0.00 2010 2011 2012 2013 2014 2015 Revenue Non-GAAP EPS 1. Non-GAAP attribut
Slide 14: Financial Outlook
Financial Outlook5 Continuing to deliver double digit revenue growth 2016 Revenue1 Assumptions +16% YoY1 GM%3: ~73% NCI4: $30M EPS2 Shares: 149M $3.55 – $3.65 1. Revenue guidance assumes constant currency rates from January 29, 2016; a 1% headwind from currency is included in total company revenue g
Slide 15: Contact
Contact Investor Relations Phone: 858-882-2080 E-mail: ir@illumina.com 15
Slide 16: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations 16
Slide 17: Itemized Reconciliation Between GAAP and Non-GAAP EPS
Itemized Reconciliation Between GAAP and Non-GAAP Earnings Per Share Attributable to Illumina Stockholders: Years Ended January 3, December 28, December 29, December 30, January 1, January 2, 2016 2014 2013 2012 2012 2011 GAAP earnings per share attributable to Illumina stockholders - $ 3.10 $ 2.37
Slide 18: Footnotes to the Itemized Reconciliation
Footnotes to the Itemized Reconciliation Between GAAP and Non-GAAP Measures: (a) Pro forma impact of weighted-average shares includes the impact of double dilution associated with the accounting treatment of the Company’s outstanding convertible debt and the corresponding call option overlay. (b) No
Slide 19: Itemized Reconciliation Between GAAP and Non-GAAP EPS
Itemized Reconciliation Between GAAP and Non-GAAP Earnings Per Share Attributable to Illumina Stockholders: Three Months Ended Years Ended January 3, December 28, January 3, December 28, 2016 2014 2016 2014 GAAP earnings per share attributable to Illumina stockholders - diluted $ 0.70 $ 1.03 $ 3.10
Slide 20: Footnotes to the Itemized Reconciliation
Footnotes to the Itemized Reconciliation Between GAAP and Non-GAAP Measures: (a) Non-cash interest expense is calculated in accordance with the authoritative accounting guidance for convertible debt instruments that may be settled in cash. (b) Legal contingencies primarily represent charges and gain
Slide 21: Reconciliation of GAAP and Non-GAAP Results as a Percent of Revenue
Itemized Reconciliation Between GAAP and Non- GAAP Results of Operations as a Percent of Revenue: Three Months Ended Years Ended January 3, December 28, January 3, December 28, 2016 2014 2016 2014 GAAP gross profit $ 410,359 69.4 % $ 384,937 75.1 % $ 1,549,290 69.8 % $ 1,297,710 69.7 % Stock-based c
Slide 22: Reconciliation of Non-GAAP Financial Guidance
Reconciliation of Non-GAAP Financial Guidance The Company’s future performance and financial results are subject to risks and uncertainties, and actual results could differ materially from the guidance set forth below. Information on potential factors that could affect the Company’s financial result