Qiagen N.v. · NYSE:QGEN
Qiagen — UBS Global Healthcare Conference 2017
20 slides from Qiagen's conference presentation, May 23, 2017
Slide 1: QIAGEN: Setting a new trajectory for growth and value creation
QIAGEN: Setting a new trajectory for growth and value creation Roland Sackers Chief Financial Officer UBS Global Healthcare Conference, May 2017 Sample to Insight UBS Global Healthcare Conference, May 2017 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: Sample to Insight
Sample to Insight UBS Global Healthcare Conference, May 2017 3
Slide 4: World leader in molecular testing solutions that enable valuable insights
QIAGEN at a glance 2016 sales by customer class Leader in molecular testing solutions True hybrid covering continuum from Academia Pharma Applied Molecular Diagnostics Testing Life Sciences to Molecular Diagnostics Core capabilities Consumables ~22% ~19% ~9% ~50% Automation systems Infor
Slide 5: We help customers gain insights to improve healthcare and advance science
QIAGEN solutions empower molecular testing from Sample to Insight Sample Technologies Assay Technologies Bioinformatics Automation systems BIOLOGICAL SAMPLE TO INSIGHT SOLUTIONS VALUABLE SAMPLE MOLECULAR INSIGHTS We help customers gain insights to improve healthcare and advance science Sample to Ins
Slide 6: QIAGEN's progress accelerating as U.S. HPV headwinds fade away
QIAGEN sales accelerating into new growth trajectory Create a molecular Significant Portfolio Commercial Sustain growth franchise reorganization transformation acceleration and deliver value Sales excl. U.S. HPV U.S. HPV sales Adj. operating income margin $1.34 bn $1.30 bn $1.28 bn $1.17 bn ~3% ~2%
Slide 7: Multiple drivers with one focus: Sample to Insight in molecular testing solutions
Customers Life Sciences Molecular Diagnostics Examples: Academia Pharma Applied Testing Clinical Healthcare Blood #1 Technologies Sample Liquid biopsy #1 Tissue #1 Automation Other #1 PCR #3 Technologies NGS Assay New QuantiFERON #1 Other Biox Software and #1 biological content Life sciences Pharma
Slide 8: Differentiated portfolio setting new trajectory for growth and value creation
Sample to Insight solutions: Key highlight areas Sample Technologies Assay Technologies Bioinformatics Automation systems BIOLOGICAL SAMPLE TO INSIGHT SOLUTIONS VALUABLE SAMPLE MOLECULAR INSIGHTS QuantiFERON GeneReader Personalized QIAsymphony Differentiated Healthcare Technologies NGS System Differ
Slide 9: QuantiFERON
QuantiFERON Increasing clinical evidence and value Q1 2017 highlights 1,400 Number of QuantiFERON-TB Winning tenders around the world 1,200 peer-reviewed publications South Korea 1,000 Abu Dhabi Health Services Company (SEHA) 800 600 – Routine healthcare worker screening 400 – Pre-employment s
Slide 10: GeneReader NGS System
GeneReader NGS System GeneReader NGS System Q1 2017 highlights High visibility at AMP Global conference: Independent customer validation studies reaffirming system performance “NGS Live in Your Lab 30 Days” launched Enabling system routine use only 30 days after installation Key benefits E
Slide 11: Personalized Healthcare
Personalized Healthcare Selected Pharma collaborations Q1 2017 highlights Portfolio expansion with liquid biopsy-based AR-V7 biomarker in prostate cancer ipsogen JAK2 liquid biopsy test FDA-cleared for important mutation testing in leukemia 2017 catalysts Expansion of pharma master collaborati
Slide 12: QIAsymphony
QIAsymphony Strong expansion in all market segments Q1 2017 highlights Strong Q1 placements above Q1 2016 pace Continued double-digit CER growth in consumables Molecular Diagnostics Academia / Pharma Women’s health Sample processing 2017 catalysts Transplantation Translational medicine
Slide 13: Differentiated Technologies
Differentiated Technologies Innovation at the cutting edge of research Q1 2017 highlights Innovative product launches including: Liquid biopsy: ~$200 million opportunity Liquid biopsy applications LB PCR Microbiome applications sample BioX = Universal NGS panels tech NGS Microbiome: ~$100 mi
Slide 14: Continuous improvement mindset to enhance sales with operational leverage
Key efficiency initiatives Adjusted operating expenses(1) (As % of net sales) 1 Sales channel Increase sales per FTE ratio 47% 48% 47% 48% ~46-47% optimization and sales over OPEX ratio CER 2 Site Focus on key sites and consolidation reduce legal entities 3 Business Service Leverage shared service C
Slide 15: Digitizing QIAGEN's business across the entire value chain
Digitization: Increasing speed, relevance and impact of molecular insights 2020 sales goals 2020 efficiency goals 50% of sales via >$20 million cost digital channels efficiency improvement 50% customer accounts Central Digital Accelerator digitally integrated unit driving transformation In
Slide 16: Setting a 2020 target to reach ~$600 million of operating cash flow
Cash flow considerations 2020: Operating cash flow target(1) (In $ millions) 1 ~$600 m Working capital management 2 ~$350 m Benefits of $318 m $288 m efficiency gains $259 m 3 Maintain DSOs with geographic expansion 4 Disciplined capex investments 2013 2014 2015 2016 2020 guidance target Setting a 2
Slide 17: Disciplined capital allocation
Disciplined capital allocation Reinvest for organic growth Increase returns Targeted M&A / licensing Capture more value from our Commitment to return $300 Continuing our strategy Sample to Insight portfolio million by end of 2017 Novel technologies New products Completion of ~$245 millio
Slide 18: Reaffirming 2017 outlook for strong sales growth and adjusted EPS expansion
As of May 2, 2017 2017: Adjusted net sales guidance 2017: Adjusted diluted EPS guidance (At CER to comparative year) (In $ per share, at CER to comparative year) ~+6-7% CER ~$1.25-1.27 CER Exiqon +6% CER acquisition $1.11 (June 2016) ~1 p.p. Exiqon and ~2 p.p. OmicSoft MO BIO (Jan 2017) acquisition
Slide 19: 2020 targets: Strong focus on sales growth and operational execution
2016-2020: Net sales growth target 2016-2020: Adjusted diluted EPS target (At constant exchange rates to comparative year) (In $ per share, at CER to comparative year) ~+7-9% CER >12% CER CAGR CAGR +6-7% CER ~$1.08-1.09 $ 1,281 m (~1.10-1.11 CER) +3% CER $1.05 ~$0.87-0.88 CER with restructuring 2015
Slide 20: Multiple drivers
+ Maximize sales growth Multiple drivers + Deliver operating leverage + Optimize balance sheet Value creation + Strong governance and top talent Adjusted EPS growth = and capital returns Committed to higher returns and greater value creation as differentiated leader Sample to Insight UBS Global Heal