Qiagen N.v. · NYSE:QGEN
Qiagen — Investor Day (December 2020)
70 slides from Qiagen's investor day presentation, Dec 8, 2020
Slide 1: QIAGEN Deep Dive
QIAGEN Deep Dive A stronger company set for solid post-pandemic growth December 8, 2020 Sample to Insight
Slide 2: Agenda
Agenda FRANKFURT / NEW YORK John Gilardi and Phoebe Loh 16:30 / 10:30 Introduction Investor Relations team Thierry Bernard 16:34 / 10:34 Strategy update Chief Executive Officer Thierry Bernard 17:00 / 11:00 COVID-19 response Chief Executive Officer Deep dive: Five pillars of growth 17:10 / 11:10 • S
Slide 3: Strategy update
QIAGEN Deep Dive Strategy update A stronger company set for solid post-pandemic growth Thierry Bernard Chief Executive Officer December 8, 2020 Sample to Insight
Slide 4: Forward looking and intended use statements
Forward looking and intended use statements Safe Harbor Statement: This presentation contains both historical and forward-looking governments, global or regional economic developments, weather or transportation delays, statements. All statements other than statements of historical fact are, or may b
Slide 5: QIAGEN at a glance
QIAGEN at a glance 9M 2020 sales Global sales reach $1.3 bn 45% Americas 48% 52% 35% EMEA 20% Asia-Pacific / Japan Molecular Life Diagnostics Sciences >5,300 86% 14% employees Consumables Instruments Innovative cutting-edge portfolios worldwide and related revenues • Trusted brand known for quality
Slide 6: International leadership team with over 200 years of combined industry experience
International leadership team with over 200 years of combined industry experience Executive Committee Supervisory Board CEO Lawrence A. Rosen Chair Thierry Bernard Supervisory Board Joined 2015 Joined 2013 CFO Life Science Roland Sackers Thomas Schweins Stéphane Bancel Metin Colpan Joined 1999 Joine
Slide 7: A stronger company set for solid post-pandemic growth
2020 has been a year of stepping up to change • Answering massive pandemic demand • Significant manufacturing capacity ramp-up • Executing continuous product launches • Retaining talented employee base Five pillars of growth to drive growth beyond 2020 • COVID-19 has accelerated our growth opportuni
Slide 8: Upgrading our outlook for solid growth in 2020 and beyond
Upgrading our outlook for solid growth in 2020 and beyond Net sales Adjusted EPS Q4 2020 NEW >+32% CER growth ~$0.64-0.65 CER(1) (Prior outlook: ~+24-27% CER) (Prior outlook: ~$0.58-0.60 CER) FY 2020 NEW ~+22% CER growth ~$2.13-2.14 CER(1) (Prior outlook: ~+20% CER) (Prior outlook: ~$2.07-2.09 CER)
Slide 9: Key takeaways
Key takeaways 1 COVID-19 accelerating the execution of our long-term growth strategy 2 Strong business with unwavering focus on five pillars of growth 3 Fostering a corporate culture of decentralization and empowerment 4 2021 and beyond: Executing on opportunities with a strengthened portfolio Sampl
Slide 10: COVID-19 accelerating our growth and permanently transforming the markets we serve
COVID-19 accelerating our growth and permanently transforming the markets we serve Meaningful COVID-19 impact in 2020 Moving into 2021 with an accelerated installed base 2020 9M net sales +18% CER $1,299 m $1,113 m COVID-related +313% CER Non-COVID -12% CER 2019 2020 Accelerated “Test and Treat”: Op
Slide 11: Strategic decision to turn unwavering focus on to five pillars of growth
Strategic decision to turn unwavering focus on to five pillars of growth 2019: 2020 and beyond: Pursuing a broad range of opportunities Sharpened focus on five pillars of growth Portfolio with multiple new launches – but diluted efforts Ability to take top 3 leadership position with waves of organic
Slide 12: Unwavering focus on five pillars of growth
Unwavering focus on five pillars of growth Five pillars of growth Sample QIAcuity QIAstat-Dx NeuMoDx QuantiFERON technologies Five pillars of growth supported by core business Core business Genomics / NGS Precision PCR / Nucleic acid Human ID / QIAGEN OEM Medicine amplification Forensics Digital Ins
Slide 13: Five pillars targeting >$6 billion opportunities of our $11 billion total addressable market
Five pillars targeting >$6 billion opportunities of our $11 billion total addressable market Sample technologies QIAcuity QIAstat-Dx NeuMoDx QuantiFERON Strengthen excellence in Enter digital PCR Accelerate Fully integrate Extend leadership in Sample technologies market with QIAcuity QIAstat-Dx adop
Slide 14: Our five pillars of growth: Leveraging our established leadership positions
Our five pillars of growth: Leveraging our established leadership positions H2 2020 2021 2022 2023 and beyond New instruments and upgraded versions Portfolio expansion into new applications Broad portfolio of consumables and instruments Sample technologies QFT- Lyme with DiaSorin (CE-IVD) (U.S. at a
Slide 15: Our five pillars of growth: Launching disruptive new solutions
Our five pillars of growth: Launching disruptive new solutions H2 2020 2021 2022 2023 and beyond CE-IVD for clinical use (2023) New research applications (including COVID-19) Drive penetration of PCR market in Life Sciences applications QIAcuity Sample to Insight QIAGEN Deep Dive | Strategy Update 1
Slide 16: Our five growth pillars: Continuing menu expansion to grow addressable market
Our five growth pillars: Continuing menu expansion to grow addressable market H2 2020 2021 2022 2023 and beyond 7 U.S. test submissions 4 CE-IVD test submissions 2 U.S. test submissions U.S. menu with 3 tests and LDT capabilities CE-IVD menu with 14 tests and LDT capabilities NeuMoDx Pneumonia, BCID
Slide 17: Fostering a culture of empowerment driven by a focus on achieving targets
Fostering a culture of empowerment driven by a focus on achieving targets Decentralizing decision-making Setting ambitious, but realistic, targets Creating a culture of “doers” • Giving teams at all levels greater influence • Appropriately balance opportunity and risk • Foster a stronger culture of
Slide 18: Leveraging synergies to focus on rapid execution
Leveraging synergies to focus on rapid execution Unified go-to-market strategy • Integrating sales, marketing and R&D within the Business Areas ◦ Fact: >150 QIAcuity placements in only four months Innovation convergence • Instilling a more venturesome and collaborative spirit ◦ Fact: Development and
Slide 19: 2021 and beyond: Capturing opportunities in dynamic markets
2021 and beyond: Capturing opportunities in dynamic markets QIAGEN well-positioned for mid-term growth opportunities 2020 2021 Post-COVID dynamics Sample >$750 million ~$770-780 million • Sustainable low- to mid-single-digit CER growth technologies (Includes ~$60 m decrease in manual RNA sample prep
Slide 20: Key takeaways
Key takeaways COVID-19 accelerating the execution of our long-term growth strategy 1 Rapid growth in installed base and sales momentum – now investing to strengthen test menus Strong business with unwavering focus on five pillars of growth 2 Sharpening our focus and investments to drive market share
Slide 21: COVID-19 response
QIAGEN Deep Dive COVID-19 response Stepping up to the challenge of global fight against COVID-19 Thierry Bernard Chief Executive Officer December 8, 2020
Slide 22: Forward looking statements
Forward looking statements Safe Harbor Statement: This presentation contains both historical and forward-looking governments, global or regional economic developments, weather or transportation delays, statements. All statements other than statements of historical fact are, or may be, deemed to be n
Slide 23: Key takeaways
Key takeaways 1 Our teams worldwide are stepping up to the challenges 2 Developing our portfolio to support every phase of the COVID-19 pandemic 3 Many solutions set to have stronger future growth with solid non-pandemic applications Sample to Insight QIAGEN Deep Dive | Strategy Update 3
Slide 24: Our directive: Leave no one behind.
QIAGEN teams worldwide are stepping up to respond to COVID-19 pandemic Our directive: “Leave no one behind.” Sample to Insight QIAGEN Deep Dive | Strategy Update 4
Slide 25: QIAGEN offers a diversity of solutions to support COVID-19 testing and treatment
QIAGEN offers a diversity of solutions to support COVID-19 testing and treatment - Medication and at-home treatment Recovery + Symptoms / No / mild COVID-19 Hospitalized ICU symptoms suspicion Testing Death Immune Response Epidemiology Vaccination? Infection diagnosis Severity assessment monitoring
Slide 26: Expanding range of COVID-19 testing solutions for all phases of the pandemic
Expanding range of COVID-19 testing solutions for all phases of the pandemic RNA sample technologies PCR testing solutions OEM components for Antigen, antibody, other suppliers T cell testing • Viral RNA purification kits • QIAstat-Dx: • Third-party manufacturing • QIAreach Anti-SARS-CoV-2 Total (na
Slide 27: QIAprep&: Novel streamlined workflow to debottleneck COVID-19 testing
QIAprep&: Novel streamlined workflow to debottleneck COVID-19 testing Answering high-throughput COVID-19 testing needs NEW • Speed: 2-minutes sample prep, 60 minutes from Sample to Insight • Low resources: Only three tips vs. ten in standard workflows • Flexibility: Any cycler, any liquid handler
Slide 28: QIAreach: Differentiated COVID-19 tests targeting satellite and decentralized lab settings
QIAreach: Differentiated COVID-19 tests targeting satellite and decentralized lab settings Antigen test: Find COVID-19 infections NEW In partnership with • Detects SARS-Cov-2 virus based on nasopharyngeal samples in symptomatic patients Download results to • Time to result: ~2-15 minutes patient fil
Slide 29: QuantiFERON SARS-CoV-2 RUO T cell
QuantiFERON® SARS-CoV-2 RUO T cell Assessing SARS-CoV-2 cell mediated immune response NEW • Based on proven QuantiFERON IGRA technology ◦ Uses immunodominant T cell targets from TScan Therapeutics • Research-use version to be launched in December 2020 ◦ Regulatory pathway under evaluation Potential
Slide 30: Solutions for COVID-19 testing and treatment decisions to support pandemic control
Solutions for COVID-19 testing and treatment decisions to support pandemic control Effects of vaccination expected in H2 2021 Nov. 23 estimate Probability of functional end Sep. 21 estimate Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Immunity testi
Slide 31: Key takeaways
Key takeaways Our teams worldwide are stepping up to the challenges 1 Anticipating >$450 million of incremental COVID-19 sales for 2020 vs. 2019 Developing our portfolio to support every phase of the COVID-19 pandemic 2 >10 new solutions developed, majority have applications beyond COVID-19 Many sol
Slide 32: Appendix
Appendix Sample to Insight
Slide 33: RNA sample technologies: Building on strengths of our proven portfolio
RNA sample technologies: Building on strengths of our proven portfolio • QIAGEN: the gold standard for RNA extraction Selected sample prep instrument portfolio • Ramping up capacity to meet COVID and non-COVID needs ◦ Sufficient manual RNA extraction production capacity ◦ Increasing demand for autom
Slide 34: QIAstat-Dx: Syndromic testing application gaining momentum on COVID-19 demand
QIAstat-Dx: Syndromic testing application gaining momentum on COVID-19 demand All-in-one solution with rapid results • Time to results: ~1 hour • Multi-specimen samples: Nasopharyngeal swab in UTM and direct swab protocols QIAstat-Dx Respiratory SARS-CoV-2 Panel: Detection of more than 20 respirator
Slide 35: NeuMoDx: Best-in-class workflow with rapid COVID-19 tests
NeuMoDx: Best-in-class workflow with rapid COVID-19 tests Integrated Sample to Insight automated PCR testing systems • Time to results: ~80 minutes • Multi-specimen samples: Nasopharyngeal swab in UTM, UVT, VTM • LDT capability to allow labs to run their own assays Current COVID-19 test menu • NeuMo
Slide 36: OEM components: Tailored reagents for SARS-CoV-2 kits for third parties
OEM components: Tailored reagents for SARS-CoV-2 kits for third parties SARS-CoV-2 specific primers and probes • Customized oligos defined by customers for use in their tests ◦ Sales can be volatile on a quarterly basis • Significantly increased output at QIAGEN Beverly (U.S.) site • Reprioritizatio
Slide 37: Five pillars of growth
QIAGEN Deep Dive Five pillars of growth Deep dive into our five pillars of growth Thomas Schweins Jean-Pascal Viola Senior Vice President, Head of Life Sciences Senior Vice President, Head of Molecular Diagnostics Business Area Business Area December Sample to Insight 8, 2020
Slide 38: Forward looking and intended use statements
Forward looking and intended use statements Safe Harbor Statement: This presentation contains both historical and forward-looking governments, global or regional economic developments, weather or transportation delays, statements. All statements other than statements of historical fact are, or may b
Slide 39: Unwavering focus on five pillars of growth
Unwavering focus on five pillars of growth Sample QIAcuity QIAstat-Dx NeuMoDx QuantiFERON technologies Sample to Insight QIAGEN Deep Dive | Strategy Update 3
Slide 40: Sample technologies: Expanding leadership in first step for any lab process
Sample technologies: Expanding leadership in first step for any lab process About Sample technologies How we win • Leader in sample preparation Proven quality: Most trusted brand in sample preparation >$1 billion ◦ Consumable kits and instruments • >200,000 publication references to date sample prep
Slide 41: Sample technologies: COVID-19 dramatically accelerating instrument and kit sales
Sample technologies: COVID-19 dramatically accelerating instrument and kit sales Instrument portfolio and placements vs. 2019 2021 and beyond ambitions – why it matters QIAsymphony • 2021 sales: >$750 m vs. ~$770-780 m in 2020 QIAcube ◦ Improving demand trends for non-COVID-19 product groups ◦ Ongoi
Slide 42: QIAcuity: Transformational digital PCR portfolio
QIAcuity: Transformational digital PCR portfolio About QIAcuity How we win ~$300 million digital PCR • New series of digital PCR instruments Easy-to-use system with benefits vs. competition market ◦ First placements in October 2020 • Easier: Fully automated workflow ~20% CAGR • Complete portfolio fo
Slide 43: QIAcuity: Disruptive nanoplate-based digital PCR system
QIAcuity: Disruptive nanoplate-based digital PCR system Longer-term ambition to convert various PCR markets 2021 and beyond ambitions – why it matters • 2021 sales: >$45 m vs. ~$10 million in 2020 Higher ◦ Gain leadership in digtal PCR instrument placements Droplet ◦ Drive rapid expansion in researc
Slide 44: QIAstat-Dx: Building momentum in a growing syndromic testing market with differentiation
QIAstat-Dx: Building momentum in a growing syndromic testing market with differentiation About QIAstat-Dx How we win • Multiplex syndromic testing Unrivaled ease-of-use – no sample preparation required ~$1.2 billion • Modular and scalable systems syndromic testing market • Rapid results in ~1 hour •
Slide 45: QIAstat-Dx: Accelerated commercialization setting-up post-pandemic growth opportunities
QIAstat-Dx: Accelerated commercialization setting-up post-pandemic growth opportunities Menu expansion plans 2021 and beyond ambitions – why it matters Completed CE-IVD • 2021 sales: >$120 million vs. ~$50 million in 2020 THOMAS U.S. Submissions planned and completed NEW DESIGN FROM Gastrointestinal
Slide 46: NeuMoDx: Bringing simplicity of clinical chemistry to integrated PCR testing
NeuMoDx: Bringing simplicity of clinical chemistry to integrated PCR testing About NeuMoDx How we win ~$3 billion • New generation of integrated PCR platforms • Easier: Three-step workflow process infectious ◦ Two scalable versions: 96 and 288 • Faster: First results in ~1 hour disease PCR testing m
Slide 47: NeuMoDx: Robust start on installed base build-out and accelerated menu expansion
NeuMoDx: Robust start on installed base build-out and accelerated menu expansion Menu expansion plans Completed 2021 and beyond ambitions – why it matters Submissions planned and completed CE-IVD U.S. • 2021 sales: >$140 m vs. ~$50 million in 2020 HBV 2022 Blood borne viruses HCV 2022 ◦ Implement ag
Slide 48: QuantiFERON: Leading standard for latent TB testing with ample market opportunities
QuantiFERON: Leading standard for latent TB testing with ample market opportunities About QuantiFERON How we win • Proprietary technology to detect latent Prepared for competition with automation partners and low-resource version diseases (dormant in cells) • Accelerating IGRA adoption with offering
Slide 49: QuantiFERON: TB sales returning to growth in 2021, launching new TB and Lyme tests
QuantiFERON: TB sales returning to growth in 2021, launching new TB and Lyme tests Portfolio expansion 2021 and beyond ambitions – why it matters QIAreach QFT-TB (formerly QFT-Access) • 2021 sales: >$230 m vs. ~$180-190 m in 2020 • Overcoming need for labs in low-resource regions • Prepared for new
Slide 50: Financial update
QIAGEN Deep Dive Financial update Emerging from 2020 with a stronger financial profile Roland Sackers Chief Financial Officer December 8, 2020 Sample to Insight
Slide 51: Forward looking and intended use statements
Forward looking and intended use statements Safe Harbor Statement: This presentation contains both historical and forward-looking governments, global or regional economic developments, weather or transportation delays, statements. All statements other than statements of historical fact are, or may b
Slide 52: Key takeaways
Key takeaways 1 New sales reporting on QIAGEN product groups and five pillars of growth 2020: Increasing outlook to ~+22% CER sales growth and ~$2.13-2.14 CER adjusted EPS 2 (~$2.11-2.13 at estimated actual rates(1)) 3 2021: Increasing outlook to ~+18-20% CER sales growth and ~$2.42-2.46 CER adjuste
Slide 53: New sales reporting on QIAGEN product groups and five pillars of growth
New sales reporting on QIAGEN product groups and five pillars of growth Product groups NEW NEW • Detailed reporting information on pillars Product groups for sales reporting • Continue to report COVID-19 / non-COVID-19 sales split • Sample technologies Product types • Diagnostic solutions • Consumab
Slide 54: QIAGEN sales reporting in new product groups
NEW QIAGEN sales reporting in new product groups Five pillars of growth Sample QIAcuity QIAstat-Dx NeuMoDx QuantiFERON QIAGEN product groups technologies(1) digital PCR(3) Consumables and instruments used in sample collection, stabilization, storage, Sample technologies(1) purification and quality c
Slide 55: New sales view by product groups
NEW New sales view by product groups Q3 2020 net sales 9M 2020 net sales Sales % change % CER Sales % change % CER Sales by product group (in $ m) change (in $ m) change Sample technologies $214 57% 56% $568 42% 44% Diagnostic solutions(1) $119 -2% -3% $302 -14% -13% Of which QuantiFERON $53 -19% -2
Slide 56: Sales view by product type and customer classes
Sales view by product type and customer classes Q3 2020 net sales 9M 2020 net sales Sales % % CER % Sales % % CER % Sales by product type (in $ m) change change of sales (in $ m) change change of sales Consumables and related revenues $420 23% 22% 87% $1,121 13% 14% 86% Instruments $64 57% 56% 13% $
Slide 57: Sales view by geographic regions
Sales view by geographic regions Q3 2020 net sales 9M 2020 net sales Sales % % CER % Sales % % CER % Sales by geographic region (in $ m) change change of sales (in $ m) change change of sales Americas $227 18% 19% 47% $578 7% 8% 45% Europe / Middle East / Africa $164 44% 40% 34% $457 34% 35% 35% Asi
Slide 58: COVID-19 and non-COVID-19 sales reporting
COVID-19 and non-COVID-19 sales reporting Q3 2020 net sales 9M 2020 net sales Sales % % CER % Sales % % CER % (in $ m) change change of sales (in $ m) change change of sales COVID-19 related product groups $164 348% 347% 34% $418 308% 313% 32% Non-COVID-19 product groups $320 -8% -8% 66% $881 -13% -
Slide 59: 2020: Increasing outlook for strong Q4 and full-year performance
NEW 2020: Increasing outlook for strong Q4 and full-year performance Outlook as of December 8, 2020 Key factors for improved Q4 2020 outlook Q4 2020 FY 2020 outlook outlook • Better-than-expected sales trends in COVID-19 and Net sales growth (CER) >+32% ~+22% non-COVID product groups compared to pri
Slide 60: 2021: Expect ongoing strong sales gains, solid EPS and reinvesting for mid-term growth
NEW 2021: Expect ongoing strong sales gains, solid EPS and reinvesting for mid-term growth Outlook as of December 8, 2020 Improving 2021 trends from non-COVID product groups FY 2021 outlook(1) • Expecting double-digit CER sales growth for both non-COVID-19 and COVID-19 product groups Net sales growt
Slide 61: Building a strong foundation for double-digit CER sales growth from non-COVID products
Building a strong foundation for double-digit CER sales growth from non-COVID products Sales trends Adjusted EPS trends In $ per share ~+18-20% CER(1) ~$2.42-2.46 ~$2.13-2.14 CER(1) CER ~+22% CER (~$2.11-2.13 at actual rates(2)) $1.5 bn $1.5 bn $1.4 bn $1.3 bn $1.43 $1.34 $1.27 $1.11 2016 2017 2018
Slide 62: Balancing efficiency gains and leverage with targeted investments into five pillars of growth
NEW Balancing efficiency gains and leverage with targeted investments into five pillars of growth Adjusted operating income margin As % of net sales ~34% ~-1 pp ~+4 pp ~-2 pp ~-2 pp ~33% CER + Lean manufacturing - R&D investments + Productivity - Commercialization initiatives / continuous into five
Slide 63: Focusing ~80% of 2021 CAPEX investments on five pillars of growth
Focusing ~80% of 2021 CAPEX investments on five pillars of growth CAPEX outlook CAPEX allocation plans As % of net sales As % of total CAPEX ~9% ~8% Five pillars of growth ~80% ~8% PP&E ~7% 2021 outlook ~8-9% ~1% ~1% Intangibles(1) ~20% Other areas 2020 outlook 2021 outlook ~1% 2021: Expecting at le
Slide 64: 2021 and beyond: Capturing opportunities in dynamic markets
2021 and beyond: Capturing opportunities in dynamic markets QIAGEN well-positioned for mid-term growth opportunities 2020 2021 Post-COVID dynamics Sample >$750 million ~$770-780 million • Sustainable low- to mid-single-digit CER growth technologies (Includes ~$60 m decrease in manual RNA sample prep
Slide 65: Maintaining financial flexibility with appropriate leverage and cost-efficient debt structures
Maintaining financial flexibility with appropriate leverage and cost-efficient debt structures Debt maturity overview Leverage ratio (As of November 30, 2020) (Net debt / EBITDA) In $ millions 2 2020 1.8 2021 1.6 1.6 177 40 1.5 1.4 2022 300 175 1.3 1.2 2023 1.1 400 1 0.9 2024 27 500 111 2027 17 U.S.
Slide 66: Disciplined capital allocation strategy to support business growth while increasing returns
Disciplined capital allocation strategy to support business growth while increasing returns Business reinvestments Fuel sustainable and profitable growth, especially in five pillars Capital Value-enhancing M&A allocation Ongoing disciplined review of bolt-on deals strategy Up to $100 million share S
Slide 67: Summary
Summary 1 New sales reporting on QIAGEN product groups and five pillars of growth 2020: Increasing outlook to ~+22% CER sales growth and ~$2.13-2.14 CER adjusted EPS 2 (~$2.11-2.13 at estimated actual rates(1)) 3 2021: Increasing outlook to ~+18-20% CER sales growth and ~$2.42-2.46 CER adjusted EPS(
Slide 68: Appendix
Appendix Sample to Insight
Slide 69: Key assumptions: 2020 and 2021 outlook
Key assumptions: 2020 and 2021 outlook As of December 8, 2020 2020 outlook 2021 outlook Business integration, acquisition-related and restructuring items ~$153 million ~$35 million Capital expenditures (PP&E) ~7% of sales ~8% of sales Capital expenditures (Intangibles, excluding acquired intellectua
Slide 70: 2020 sales view by product groups
2020 sales view by product groups Q1 2020 net sales Q2 2020 net sales Q3 2020 net sales 9M 2020 net sales Sales by product group Sales % CER Sales % CER Sales % CER Sales % CER (in $ m) % change change (in $ m) % change change (in $ m) % change change (in $ m) % change change Sample technologies $15