Qiagen N.V. · NYSE:QGEN
Qiagen — Q2 2014 Earnings Presentation
30 slides from Qiagen's earnings presentation, Jul 30, 2014
Slide 1: Second quarter 2014 results
Sample & Assay Technologies Second quarter 2014 results July 30, 2014
Slide 2: Forward looking statements
Sample & Assay Technologies Forward looking statements Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities
Slide 3: Agenda
Sample & Assay Technologies Agenda Introduction John Gilardi, VP Corp Comms and IR Peer Schatz, CEO Presentation Roland Sackers, CFO Q&A session Second quarter 2014 results 3
Slide 4: Q2 and H1 2014: Overview
Sample & Assay Technologies Q2 and H1 2014: Overview Financial results(1) Overview Second quarter Reaffirming full-year guidance based on In $ millions Change H1 2014 achievements (Except EPS) Q2 2014 Q2 2013 $ (CER) Adjusted +5% net sales(1) 331.2 316.4 (+4% CER) Five growth drivers building mo
Slide 5: Q2 2014: Adjusted net sales by customer class
Sample & Assay Technologies Q2 2014: Adjusted net sales by customer class HPV (U.S.) ~6% of sales Molecular Diagnostics -31% Applied Pharma Academia MDx portfolio HPV Testing (RoW) ~40% of sales ~5% of sales +18% CER +8% CER Q2 2014 ~51 % ~8% ~19% ~22% adjusted net sales Change +8% +2% +0% -4% (CER)
Slide 6: Q2 2014: Key results
Sample & Assay Technologies Q2 2014: Key results In $ millions Change Q2 2014 Q2 2013 (Except EPS) $ (CER) +5% Delivering growth in all regions Adjusted net sales 331.2 316.4 (+4% CER) Adjusted gross profit 236.9 222.5 +6% Adjusted gross profit margin 72% 70% Adjusted operating income 81.2 73.5 10%
Slide 7: Q2 2014: Geographic regions and product portfolio
Sample & Assay Technologies Q2 2014: Geographic regions and product portfolio Geographic regions Product portfolio Europe / Middle East / Consumables Africa and related ~34% of sales Asia-Pacific / revenues +7% CER Japan ~88% +5% CER ~18% +3% CER ~12% Instruments -5% CER ~47% +1% CER Americas EMEA
Slide 8: H1 2014: Key results
Sample & Assay Technologies H1 2014: Key results In $ millions Change H1 2014 H1 2013 (Except EPS) $ (CER) +5% Molecular Diagnostics and Applied Adjusted net sales 648.6 620.0 Testing lead performance (+4% CER) Adjusted gross profit 466.7 440.9 +6% Product mix gains with bioinformatics Adjusted gros
Slide 9: H1 2014: Balance sheet and free cash flow
Sample & Assay Technologies H1 2014: Balance sheet and free cash flow As of June 30 2014 2013 Leverage ratio: Net debt / EBITDA(1) Group liquidity (In $ millions) 655 373 3.5 3.3 Net debt (In $ millions) 535 491 3.0 Shareholder equity ratio 60% 65% 2.5 Net debt / adjusted EBITDA 2.2 1.2 1.1 2.0 rati
Slide 10: Five growth drivers leading QIAGEN transformation
Sample & Assay Technologies Five growth drivers leading QIAGEN transformation QIAsymphony Academia Personalized Healthcare (PHC) Pharma QuantiFERON-TB Bioinformatics Applied Testing GeneReader NGS workflow and universal solutions Molecular Diagnostics Leveraging the potential of five growth drivers
Slide 11: H1 2014: Important product approvals and launches
Sample & Assay Technologies H1 2014: Important product approvals and launches QIAsymphony RGQ MDx platform (FDA clearance) QIAsymphony artus C. difficile QS-RGQ MDX Kit (FDA clearance) NEW – Q2 2014 artus CMV RGQ MDx Kit (FDA clearance) NEW – Q2 2014 therascreen KRAS RGQ PCR Kit (FDA PMA) Personaliz
Slide 12: QuantiFERON: Clinical value of latent TB testing
Sample & Assay Technologies QuantiFERON: Clinical value of latent TB testing THE NEW YORK CITY DEPARTMENT OF HEALTH AND MENTAL HYGIENE Open Forum Infectious Diseases, June 2014 (Oxford Journals) Largest-ever IGRA study with ~70,000 QuantiFERON-TB tests in New York City (2006-2011) Benefits of Qu
Slide 13: New PHC co-development projects and FDA approval
Sample & Assay Technologies New PHC co-development projects and FDA approval NEW – Q2 2014 NEW – Q2 2014 NEW – Q2 2014 Eli Lilly DNA / RNA Astra Zeneca liquid biopsy FDA approval: therascreen collaboration collaboration KRAS kit (Vectibix) Simultaneous analysis of DNA Liquid biopsy companion F
Slide 14: Development and expansion of our NGS portfolio
Sample & Assay Technologies Development and expansion of our NGS portfolio Offering universal solutions and developing complete workflow Prepare Sequence Interpret Target Library Data analysis Sample Sequencing and technologies enrichment construction interpretation BIOLOGICAL 10 GeneRead GeneRead L
Slide 15: Competitive GeneRead DNAseq V2 gene panels
Sample & Assay Technologies Competitive GeneRead DNAseq V2 gene panels Integrating gene panels with industry-leading bioinformatics (Inherited disease) cancer mutations Cardiomyopathy relevant tumors Comprehensive Mix and match predisposition Carrier testing Customized neoplasms Actionable Colorecta
Slide 16: Q3 and full-year 2014: Outlook and assumptions
Sample & Assay Technologies Q3 and full-year 2014: Outlook and assumptions As of July 30, 2014 Q3 2014 FY 2014 outlook outlook Adjusted net sales(1) ~+4-5% CER ~+4-5% CER ~$0.26-0.27 CER ~$1.07-1.09 CER Adjusted diluted EPS(2) (Prior year: $0.26) (Prior year: $1.02) Amortization of acquired intellec
Slide 17: Summary
Sample & Assay Technologies Summary Delivering innovation and growth in Q2 2014 Achieved Q2 2014 targets Operating income margin expansion and increasing free cash flow Five growth drivers building momentum QIAsymphony: U.S. menu expansion and new system placements Personalized Healthcare: E
Slide 18: Appendix
Sample & Assay Technologies Appendix
Slide 19: Q2 2014: Income statement summary
Sample & Assay Technologies Q2 2014: Income statement summary In $ millions Q2 2014 Q2 2013 Change (Unless indicated) Net sales 330.8 315.2 5% Adjusted net sales 331.2 316.4 5% Adjusted net sales (CER) 327.5 316.4 4% Gross profit 215.9 168.9 28% Adjusted gross profit 236.9 222.5 6% Operating income
Slide 20: Q2 2014: Reconciliation of reported to adjusted figures
Sample & Assay Technologies Q2 2014: Reconciliation of reported to adjusted figures In $ millions Net Gross Operating Pretax Income Tax Net Diluted (Except EPS) sales profit income income tax rate income EPS(1) Reported results 330.8 215.9 47.7 39.2 -6.1 16% 32.8 0.14 Adjustments Business integratio
Slide 21: H1 2014: Income statement summary
Sample & Assay Technologies H1 2014: Income statement summary In $ millions H1 2014 H1 2013 Change (Unless indicated) Net sales 647.9 618.8 5% Adjusted net sales 648.6 620.0 5% Adjusted net sales (CER) 645.3 620.0 4% Gross profit 426.0 368.9 15% Adjusted gross profit 466.7 440.9 6% Operating income
Slide 22: H1 2014: Reconciliation of reported to adjusted figures
Sample & Assay Technologies H1 2014: Reconciliation of reported to adjusted figures In $ millions Net Gross Operating Pretax Income Tax Net Diluted (Except EPS) sales profit income income tax rate income EPS(1) Reported results 647.9 426.0 90.0 67.0 -10.7 16% 56.1 0.23 Adjustments Business integrati
Slide 23: Currency impact
Sample & Assay Technologies Currency impact Adjusted net sales at Adjusted net sales change Q2 2014 constant exchange rates due to currency In $ millions adjusted net sales (CER) (In $ millions) Net sales in USD 131.6 131.6 0.0 Net sales in EUR 90.2 86.1 4.1 Net sales in GBP 21.1 19.3 1.8 Net sales
Slide 24: Perspectives on 2014 adjusted net sales guidance
Sample & Assay Technologies Perspectives on 2014 adjusted net sales guidance Adjusted net sales In $ millions Important contributions from five growth drivers ~+8-9 p.p. ~+4-5% CER $1,306 ~-4 p.p. Compares to ~-2p.p. headwind in 2013 2013 2013 2014 expected 2014U.S. HPV 2014 expected 2014 rest of 20
Slide 25: Q3 and full-year 2014 guidance
Sample & Assay Technologies Q3 and full-year 2014 guidance As of July 30, 2014 New adjustment policy Share-based compensation Old adjustment policy (Includes SBC costs) (SBC) costs (Excludes SBC costs) Adjusted EPS $1.02 $0.12 $1.14 full-year 2013 results Adjusted EPS ~$1.07-1.09 CER ~$0.14 CER ~$1.
Slide 26: 2013 results: Adjusted EPS
Sample & Assay Technologies 2013 results: Adjusted EPS(1) New adjustment policy Share-based compensation Old adjustment policy (Includes SBC costs) (SBC) costs (Excludes SBC costs) Q1 2013 $0.20 $0.03 $0.23 Q2 2013 $0.24 $0.03 $0.27 Q3 2013 $0.26 $0.02 $0.28 Q4 2013 $0.33 $0.03 $0.36 Full-year 2013
Slide 27: 2013 results: New adjustment policy
Sample & Assay Technologies 2013 results: New adjustment policy(1) 2013 adjusted results incl. share-based compensation expenses Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted gross operating op. inc. pretax income diluted net sales tax rate net income profit income
Slide 28: Employees as of June 30, 2014
Sample & Assay Technologies Employees as of June 30, 2014 Asia Pacific / Japan and Total Total Americas Europe Rest of World Q2 2014 Q2 2013 Change Production 261 622 95 978 943 4% R&D 158 702 45 905 778 16% Sales 527 578 478 1,583 1,574 1% Marketing 78 181 64 323 322 0% Admin 96 269 62 427 437 -2%
Slide 29: List of abbreviations
Sample & Assay Technologies List of abbreviations Adj Adjusted EGM Emerging Growth Markets Mg/Ms Mycoplasma Mg/Ms AIV Avian influenza virus EPS Earnings per share MDx Molecular Diagnostics ALK Anaplastic Lymphoma Kinase EU European Union MN1 meningioma 1 AML1 Acute Lymphoblastic Leukaemia ESBL Exten
Slide 30: Your contacts
Sample & Assay Technologies Your contacts E-mail: ir@qiagen.com John Gilardi Angela Schmidt Vice President Project Coordinator Corporate Communications and IR Investor Relations Tel: +49 2103 29 11711 Tel: +49 2103 29 11709 or +1 240 686 2222 Mobile: +49 152 018 11709 Mobile: +49 152 018 11711 E-mai