Slide 1: Investor presentation Q2 2018
Investor presentation Q2 2018 Sample to Insight Investor presentation Q2 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 Q1 2017 results Appendix Sample to Insight Investor presentation Q2 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 Q2 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 Q2 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 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 10: 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 Q2 2018 10
Slide 11: 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 12: 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 13: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2018 13
Slide 14: Key highlight areas: QIAGEN's Sample to Insight portfolio
Life Molecular Key highlight areas: QIAGEN’s Sample to Insight portfolio Sciences Diagnostics QIAstat-Dx NEW ✓ QuantiFERON ✓ Next-generation sequencing ✓ ✓ ✓ ✓ Powered by Personalized Healthcare QIAGEN Bioinformatics QIAsymphony ✓ ✓ Differentiated Technologies Applications including: ✓ ✓ ■ Liquid bi
Slide 15: QIAstat-Dx
QIAstat-Dx European launch of QIAstat-Dx at ECCMID QIAstat-Dx value proposition ◼ Launch with two panels and broad menu pipeline planned Sample to Insight One-step diagnostic solution System launch with CE-IVD marked respiratory and CE-IVD respiratory and gastrointestinal panels at launch, gastroi
Slide 16: QuantiFERON
QuantiFERON Q1 2018 highlights ◼ Strong double-digit sales growth, on track for $300 million target in 2020 annual sales ◼ Launch of 4th-generation QuantiFERON-TB Gold Plus planned for Japan ◼ Public health authorities support driving acceleration in latent TB market conversion WHO: Expanded globa
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 Expanding QuantiFERON-TB benefits Total convertible 2020 target: >$300 million sales LTBI market: ◼ Intensify commercial activities in strategic markets ◼ Automation upgrades to improve workflow ~70 million UPDATE ◼ Continue menu expansion tests annually North America ◼ Market: ~20 milli
Slide 19: Next-generation sequencing
Next-generation sequencing Q1 2018 highlights ◼ High visibility of Sample to Insight NGS solutions at AACR conference ◼ Universal NGS portfolio Strong double-digit CER growth Leveraging Digital NGS und Bioinformatics to enable routine TMB testing with standardization consortiums in U.S. and Euro
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: market and throughput
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: Natera and QIAGEN collaboration
Natera and QIAGEN collaboration GeneReader NGS System ◼ Long-term partnership for development of cutting-edge genetic testing assays Joint development of NGS-based cell-free NIPT assay Designed for GeneReader NGS System Powerful bioinformatics integrating Natera’s Constellation cloud platform
Slide 24: Natera and QIAGEN collaboration
Natera and QIAGEN collaboration Clinical molecular testing market by application(1) QIAGEN Partnership Natera (In $ billions) 3.4 2.1 2.7 1.4 1.6 Liquid biopsy Cell-free DNA 2.2 Oncology platform technologies NIPT expertise 2.1 2.5 0.8 1.0 1.6 2.4 NIPT NGS assay Panorama assay platform technologies
Slide 25: Personalized Healthcare
Personalized Healthcare Q1 2018 highlights ◼ Strong performance of ipsogen blood-cancer tests Double-digit CER sales growth ◼ New CE-IVD marked therascreen PITX2 PCR kit Epigenetic test for breast cancer therapy ◼ Launch of AdnaTest AR-V7 kit For use with circulating tumor cells from liquid bi
Slide 26: QIAsymphony
QIAsymphony Q1 2018 highlights ◼ Robust growth in placements even in light of very strong placement trend in 2017 ◼ Well on track to achieve goal for 2,300 cumulative placements at the end of 2018 ◼ Launch of new CE-marked test for Trichomonas Vaginalis, strengthening infectious disease portfolio ◼
Slide 27: Differentiated Technologies
Differentiated Technologies Q1 2018 highlights ◼ Strengthening leadership in liquid biopsy sample processing ◼ Expanding No. 1 market share position in microbiome testing Strong double-digit growth of POWER portfolio Launch of UCP Multiplex PCR kits for superior purity and performance Proven abi
Slide 28: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2018 28
Slide 29: 2017: Quarterly and full-year income statement summary
2017: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Net sales 307.7 349.0 364.0 396.9 1,417.5 Adjusted net sales 308.3 349.6 364.4 397.1 1,419.4 Gross profit 195.8 224.6 240.9 261.3 922.6 Gross
Slide 30: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2018 30
Slide 31: Q1 2018: Overview
Q1 2018: Overview 1 Exceeded Q1 2018 targets with strong performance Q1 net sales Q1 adjusted EPS ◼ +12% total net sales growth (+6% CER vs. +5% CER outlook) (In $ millions, at actual rates) (In $ per share) ◼ $0.26 adjusted EPS ($0.25 CER vs. $0.23-0.24 CER outlook) +6% CER ◼ 22% adjusted operating
Slide 32: Q1 2018: Product type and customer class
Q1 2018: Product type and customer class Q1 2018 net sales: $343.6 million Sales (In $ m) % CER change % of sales Consumables and related revenues $307 +7% 89% Instruments $37 +1% 11% Molecular Diagnostics(1) $161 +9% 47% Applied Testing $31 0% 9% Pharma $71 +8% 21% Academia $81 +3% 23% Molecular Di
Slide 33: Q1 2018: Geographic regions
Q1 2018: Geographic regions Q1 2018 net sales: $343.6 million Sales (In $ m) % CER change % of sales Americas $159 +11% 46% Europe / Middle East / Africa $116 +4% 34% Asia-Pacific / Japan $68 0% 20% Americas Europe / Middle East / Africa Asia-Pacific / Japan Q1 2018: Double-digit CER growth in U.S.
Slide 34: Q1 2018: Balance sheet and cash flow
Q1 2018: Balance sheet and cash flow Balance sheet data (As of March 31) 2018 2017 Leverage ratio(1) Group liquidity (In $ millions) 1,014 273 3.3 Net debt (In $ millions) 759 800 Shareholder equity ratio 51% 60% Leverage ratio(1) 1.4x 1.7x 2.2 1.6 1.5 1.3 1.4 1.2 1.1 Cash flow 0.9 0.9 (In $ million
Slide 35: Q1 2018: Reconciliation adjusted results
Q1 2018: Reconciliation adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS First quarter 2018 Reported results 343.6 225.7 47.9 39.1 -6.8 17% 32.3 0.14 Adjustments Business integration, acquisition
Slide 36: Q2 and FY 2018: Outlook and assumptions
Q2 and FY 2018: Outlook and assumptions As of May 2, 2018 Q2 2018 outlook Full-year 2018 outlook Net sales ~+5-6% CER ~+6-7% CER ~$0.31-0.32 CER ~$1.31-1.33 CER Adjusted EPS(1) (Prior year: $0.30) (Prior year: $1.27) Adjustments to operating income (in $ millions): Purchased intangibles amortization
Slide 37: Agenda
Agenda Introducing QIAGEN Portfolio review Full-year 2017 results Q1 2017 results Appendix Sample to Insight Investor presentation Q2 2018 37
Slide 38: 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 Q2 2018 38
Slide 39: 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 40: Employees as of March 31, 2018
Employees as of March 31, 2018 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q1 2018 Q1 2017 Production 269 669 136 1,074 985 9% R&D 230 696 41 967 952 2% Sales 594 725 566 1,885 1,865 1% Marketing 60 147 63 270 288 -6% Administration 87 326 95 508 471 8% Total
Slide 41: Your contacts
Your contacts Download the QIAGEN IR App John Gilardi Dr. Sarah Fakih Alexandra Koenig Vice President Corporate 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 11711 Mobile