Tecan Group Ag · SIX:TECN
Tecan — H1 2016 Earnings Presentation
23 slides from Tecan's earnings presentation, Aug 16, 2016
Slide 1: Half Year Results 2016
Zurich, August 16 2016 Half Year Results 2016 ANALYST & MEDIA CONFERENCE CALL
Slide 2: Speakers
Speakers Dr. David Martyr, CEO Dr. Rudolf Eugster, CFO 2
Slide 3: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS OUTLOOK QUESTIONS AND ANSWERS 3
Slide 4: Financial Performance H1 2016
Financial Performance H1 2016 • Continued strong sales performance of +15.0% including Sias and +9.2% organic • Substantial growth of +26.0% in Partnering Business (+13.3% organic) • Growth in Asia of +30.6% a particular highlight; sales in China almost doubled • Continued strong increase in order b
Slide 5: Operating Highlights H1 2016
Operating Highlights H1 2016 • Considerable progress with integration of Sias • Legally merged with a Tecan subsidiary; fully integrated • Relocation of personnel and production lines into Tecan headquarters concluded • Significant increase in serial production of major platforms in Partnering Busin
Slide 6: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS OUTLOOK QUESTIONS AND ANSWERS 6
Slide 7: Order Entry and Sales Performance
H1 2016 Order Entry and Sales Performance ORDER ENTRY H1 2016 260 250.6 ORDER ENTRY H1 2016 VS. H1 2015 240 • +13.9% in CHF CHF (mio) 220.1 • +11.3% in local currencies (LC) 220 • Organic +7.0% in LC, +9.4% in CHF 200 • Order backlog with double-digit % increase 180 2015 2016 SALES H1 2016 SALES H1
Slide 8: Segment Sales
H1 2016 Segment Sales SALES (IN CHF MILLIONS) 2015 130.0 2016 120.0 117.7 117.6 LIFE SCIENCES BUSINESS: 110.0 107.5 • Sales increased by 9.5% in CHF and 5.8% in LC 100.0 • Newly launched platforms, service, consumables 92.4 90.0 and reagents contributed considerably 80.0 Life Sciences Partnering Bus
Slide 9: Regional Sales Development
H1 2016 Regional Sales Development YoY % YoY % +30.6% in LC +19.6% in LC EUROPE: +34.7% in CHF +23.3% in CHF • Strong growth driven primarily by Partnering Business and first-time Sias contribution Others 2% NORTH AMERICA: • Good growth in Life Sciences Business Asia • Anticipated lower sales in Com
Slide 10: Gross Profit
H1 2016 Gross Profit GROSS PROFIT (% = % OF SALES) GROSS PROFIT INCREASED TO CHF 112.3M • CHF 15.3m or 15.8% above H1 2015 120 GROSS PROFIT MARGIN DOWN BY 80BPS 112.3 • Impact from acquisitions accounting for almost 110 entire difference CHF (mio) • Remaining effects offsetting each other, including
Slide 11: Cost Structure
H1 2016 Cost Structure OPERATING EXPENSES (% = % OF SALES) OPERATING EXPENSES, INCLUDING SIAS, GREW SLIGHTLY MORE THAN SALES 100 84.9m (36.1%) • Sales & Marketing increased less than sales 80 71.8m despite continued investments to support product (35.9%) launches 38.2 CHF (mio) 60 (16.2%) 33.1 • R&D
Slide 12: EBIT and EBITDA
H1 2016 EBIT and EBITDA EBIT AND EBITDA (IN CHF MILLIONS) EBIT INCREASED TO CHF 27.7M 40 37.9 • Including all acquisition-related costs EBIT 35 • CHF 2.4m or 9.8% above H1 2015 32.6 EBITDA 30 27.7 EBITDA GREW TO CHF 37.9M 25.3 25 • CHF 5.3m or 16.4% above H1 2015 20 2015 2016 EBIT AND EBITDA MARGIN
Slide 13: Segment Profitability
H1 2016 Segment Profitability EBIT (IN CHF MILLIONS) 25 LIFE SCIENCES BUSINESS: 20.9 • EBIT margin increased slightly to 9.9% 20 17.4 • Factors contributing include: 15 12.2 2015 • (+) Positive price effect 11.3 2016 10 • (+) Positive volume effect 5 • (-) Product mix • (-) Increased amortization on
Slide 14: Net Profit
H1 2016 Net Profit NET PROFIT (% = % OF SALES) 30 26.0 NET PROFIT BELOW PRIOR YEAR DUE TO 23.5 EFFECTS BELOW EBIT LINE • (-) CHF 4.0m lower financial result; H1 2015 with 20 temporary currency hedging profit (note: hedging CHF (mio) profit eliminated again for full year 2015) • (-) Normalized tax ra
Slide 15: Basic Earnings per Share
H1 2016 Basic Earnings per Share BASIC EARNINGS PER SHARE 2.40 2.31 EARNINGS PER SHARE DEVELOPED IN LINE 2.20 WITH NET PROFIT TO CHF 2.04 2.04 2.00 AVERAGE NUMBER OF SHARES CHF / share OUTSTANDING: 11.5M (H1 2015: 11.2M) 1.80 48.8% 49.5% 1.60 48.8% 49.5% 1.40 1.20 1.00 2015 2016 15
Slide 16: Cash Flow
H1 2016 Cash Flow +64.9 -5.1 246.9 -21.4 208.4 Cash at end of From Operations From Investments From Financing1 Cash at end 2015 of June 2016 CASH FLOW FROM OPERATIONS INCREASED BY 85% TO CHF 64.9M (H1 2015: CHF 35.1M) • Cash conversion of 27.6% of sales, including further reimbursement of developmen
Slide 17: Key Figures
H1 2016 Key Figures 2015 2016 Δ IN % Sales (in CHF mio) 200.0 235.3 +17.7% Sales in local currencies (in CHF mio) 204.5 235.3 +15.0% Gross Profit (in CHF mio) 97.0 112.3 +15.8% in % of sales 48.5% 47.7% R&D (in CHF mio) 20.1 22.9 +14.0% in % of sales 10.0% 9.7% EBIT (in CHF mio) 25.3 27.7 +9.8% in %
Slide 18: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS OUTLOOK QUESTIONS AND ANSWERS 18
Slide 19: Outlook for 2016 confirmed
Outlook for 2016 confirmed SALES Double-digit sales growth in local currencies PROFITABILITY EBITDA (in CHF mio) at least at a similar level as 2015 • Despite integration costs in a mid single-digit million CHF amount related to the Sias acquisition (accretive in 2017) and lack of 2015 tailwind Unde
Slide 20: Advancing Tecan
Advancing Tecan OUTGROWING MARKET ORGANICALLY • Life Sciences Business with new and leading product portfolio and improved organization • Partnering Business with major platforms in ramp up phase and broad pipeline INCREASING PROFITABILITY • Committed to drive profitability higher together with sale
Slide 21: Q&A
Q&A IR IPAD APP CONTACT News, financial reports, Martin Braendle presentations, Vice President, Communications & IR videos and more Phone: +41 (0) 44 922 84 30 investor@tecan.com NEXT EVENT 2017 www.tecan.com March 15: Full Year Results 2016 April 11: Annual Shareholder Meeting 21
Slide 22: «a a em
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Slide 23: Tecan – Who we are
Tecan – Who we are Tecan (www.tecan.com) is a leading global provider of laboratory instruments and solutions in biopharmaceuticals, forensics and clinical diagnostics. The company specializes in the development, production and distribution of automated workflow solutions for laboratories in the lif