Qiagen N.v. · NYSE:QGEN
Qiagen — Bryan Garnier Healthcare Conference 2019
27 slides from Qiagen's conference presentation, Oct 31, 2019
Slide 1: Investor presentation Q4 2019
Research lab at the University of Houston in Houston, Texas Investor presentation Q4 2019 Sample to Insight
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 Regulation G: QIAGEN reports adjusted results, as well as results on a constant exchange rate statements. All statements other than statements of historical fact are, or
Slide 3: Agenda
Agenda Introduction John Gilardi VP Corporate Communications and IR Business and financial update Thierry Bernard Interim CEO Roland Sackers CFO Q&A session MZV Laboratory in Leipzig, Germany Sample to Insight Investor presentation Q4 2019 3
Slide 4: Q3 2019: Summary
Q3 2019: Summary 1 Q3 2019 results Q3 and 9M net sales Q3 and 9M adjusted EPS(1) (In $ millions, at actual rates) (In $ per share) • $382.7 million net sales (+1% actual, +3% CER vs. ~4-5% CER outlook) +4% CER • $0.36 adj. EPS ($0.36 CER vs. $0.35-0.36 CER outlook) 1,098.7 1,113.0 • 27.8% adjusted o
Slide 5: Q3 2019: Financial review
Q3 2019: Financial review Third quarter First nine months (In $ millions, unless indicated) (Diluted EPS in $ per share) 2019 2018 Change 2019 2018 Change Net sales(1) 382.7 377.9 1% (3% CER) 1,113.0 1,098.7 1% (4% CER) Operating (loss) income (207.5) 77.0 -369% (106.1) 178.3 -160% Adjusted operatin
Slide 6: Q3 2019: Measures to reorient NGS portfolio and prioritize resource allocation
Q3 2019: Measures to reorient NGS portfolio and prioritize resource allocation Revitalizing NGS strategy and product portfolio • Illumina strategic partnership to advance NGS in clinical decision-making Q3 2019 restructuring charge • Decision to discontinue NGS instrument development programs $276.8
Slide 7: Q3 2019: Product type and customer class
Q3 2019: Product type and customer class Q3 2019 net sales: $382.7 million 9M 2019 net sales: $1.113 billion Sales % % CER % Sales % % CER % (In $ m) change change of sales (In $ m) change change of sales Consumables and related revenues $342 +3% +5% 89% $990 +2% +5% 89% Instruments $41 -13% -11% 11
Slide 8: Q3 2019: Geographic regions
Q3 2019: Geographic regions Q3 2019 net sales: $382.7 million 9M 2019 net sales: $1.113 billion Sales % % CER % Sales % % CER % (In $ m) change change of sales (In $ m) change change of sales Americas $192 +3% +4% 50% $542 +3% +4% 49% Europe / Middle East / Africa $114 +3% +7% 30% $341 -2% +5% 31% A
Slide 9: Q3 2019: China sales perspectives
Q3 2019: China sales perspectives Q3 2019: China quarterly sales trends Q3 2019: China sales perspectives (Sales in $ million at actual rates, CER % point change over prior-year period) • Q3 2019 results weaker than expected -24% CER ◦ Primary impact on Molecular Diagnostics portfolio due to $35m dr
Slide 10: Next-generation sequencing: QIAGEN solutions covering all segments of NGS market
Next-generation sequencing: QIAGEN solutions covering all segments of NGS market Reaffirming full-year 2019 goal for $180 million of NGS-related sales vs. >$140 million in 2018 • New orientation for NGS growth strategy with Illumina QIAGEN NGS portfolio components partnership Universal NGS • Preanal
Slide 11: 15-year partnership to accelerate use of NGS in clinical decision-making
15-year partnership to accelerate use of NGS in clinical decision-making • QIAGEN to develop and market NGS IVD kits (including CDx assays) for use on Illumina systems ◦ Integrated with QIAGEN sample technologies, NGS IVD kits and bioinformatics solutions for “Sample to Insight” experience • Rights
Slide 12: Bringing together highly complementary capabilities to offer complete clinical solutions
Bringing together highly complementary capabilities to offer complete clinical solutions Nucleic Library Next- Sample Data acid generation Interpretation Reporting collection preparation analysis purification sequencing Blood, plasma, QIAsymphony SP QIAseq NextSeqDX 550, MiSeqDx QCI-Analyze QCI-Inte
Slide 13: Q4 and FY 2019: Outlook and assumptions
Q4 and FY 2019: Outlook and assumptions (As of Oct 30, 2019) Q4 2019 outlook FY 2019 outlook ~+3% CER ~+4% CER Net sales (Prior year: $403.2 m) (Prior year: $1,501.8 m) ~$0.45-0.46 CER ~$1.43-1.44 CER Adjusted EPS(1) (Prior year: $0.40) (Prior year: $1.34) Adjustments to operating income (in $ milli
Slide 14: Summary
Summary • Q3 net sales performance affected by China slowdown and decline in companion diagnostic co-development revenues, achieved adjusted EPS target • Committed leadership team steering QIAGEN through transition period • Illumina 15-year strategic partnership: New opportunities to expand presence
Slide 15: Appendix
George Mason University in Fairfax, Virginia Appendix Sample to Insight
Slide 16: Q3 2019: Consolidated Statements of Income
Q3 2019: Consolidated Statements of Income (unaudited) Three months ended Three months ended (In $ thousands, except share data) September 30, 2019 September 30, 2018 Net sales 382,686 377,911 Cost of sales: Cost of sales 109,648 107,908 Acquisition-related intangible amortization 18,096 13,227 Tota
Slide 17: 9M 2019: Consolidated Statements of Income
9M 2019: Consolidated Statements of Income (unaudited) Nine months ended Nine months ended (In $ thousands, except share data) September 30, 2019 September 30, 2018 Net sales 1,112,952 1,098,675 Cost of sales: Cost of sales 331,953 318,854 Acquisition-related intangible amortization 55,302 43,615 To
Slide 18: Q3 and 9M 2019: Reconciliation adjusted results
Q3 and 9M 2019: Reconciliation adjusted results Operating Pretax Net Net Gross Income Tax Diluted In $ millions (Except EPS) (loss) (loss) (loss) sales profit tax rate EPS(1) (Unaudited) income income income Third quarter 2019 Reported results 382.7 254.9 (207.5) (227.0) 66.4 29% (160.6) (0.71) Adju
Slide 19: Q3 and 9M 2019: Currency impact
Q3 and 9M 2019: Currency impact Net sales Net sales Currency exposure Change (In $ millions) (CER) (As % of CER sales) (In $ millions) Third quarter 2019 U.S. dollar 194.7 194.7 50% 0.0 Euro 74.0 77.5 20% -3.5 British pound 15.5 16.4 4% -0.9 Japanese yen 13.3 12.8 3% 0.5 Other currencies 85.2 87.3 2
Slide 20: 2019: Quarterly and full-year income statement summary
2019: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2019 Q2 2019 Q3 2019 Q4 2019 YTD 2019 Net sales 348.7 381.6 382.7 1,113.0 Net sales (CER) 364.5 394.5 388.6 1,147.6 Gross profit 224.8 245.9 254.9 725,7 Gross profit margin 64% 64
Slide 21: 2018: Quarterly and full-year income statement summary
2018: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2018 Q2 2018 Q3 2018 Q4 2018 FY 2018 Net sales 343.6 377.2 377.9 403.2 1,501.8 Gross profit 225.7 253.8 256.8 264.8 1,001.0 Gross profit margin 66% 67% 68% 66% 67% Adjusted gross
Slide 22: 2019: Total net sales overview
2019: Total net sales overview Net sales by customer class (In $ millions at actual rates / Q1 2019 Q2 2019 Q3 2019 Q4 2019 YTD 2019 change in actual, CER rates) Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Molecular Diagnostics 168 4% 10% 188 1% 5% 183 -3% -2% 539 0% 4
Slide 23: Consolidated Balance Sheets
Consolidated Balance Sheets September 30, December 31, September 30, December 31, (In $ thousands, except par value) 2019 2018 (In $ thousands, except par value) 2019 2018 Assets (unaudited) Liabilities and Equity (unaudited) Current liabilities: Current assets: Current portion of long-term debt 72,
Slide 24: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows (unaudited) Nine months ended Nine months ended September 30, September 30, September 30, September 30, (In $ thousands) 2019 2018 (In $ thousands) 2019 2018 Cash flows from operating activities: Cash flows from financing activities: Net (loss) income (86,388) 1
Slide 25: Employees as of September 30, 2019
Employees as of September 30, 2019 Europe / Asia Pacific / Total Total Americas Middle East / Africa Japan / ROW Q3 2019 Q3 2018 Change Production 278 763 136 1,177 1,059 11% R&D 218 757 51 1,026 1,056 -3% Sales 547 809 725 2,081 1,931 8% Marketing 84 164 81 329 296 11% Administration 88 375 143 606
Slide 26: Abbreviations
Abbreviations Adj Adjusted EBV Epstein-Barr virus JPY Japan Yen RGQ Rotor-Gene Q AIV Avian influenza virus EGFR Epidermal Growth Factor Receptor KRAS Kirsten rat Sarcoma Viral Oncogene RNA Ribonucleic Acid ALK Anaplastic Lymphoma Kinase EGM Emerging Growth Markets Homolog ROM Rupture of Fetal Membra
Slide 27: Your contacts
Your contacts John Gilardi Vice President Calendar Corporate Communications and IR Phone: +49 2103 29 11711 Q4 2019 results February 2020 +1 240 686 2222 Mobile: +49 152 018 11711 Q1 2020 results May 2020 E-mail: john.gilardi@qiagen.com Annual General Meeting June 2020 Phoebe Loh Share information A