Tecan Group Ag · SIX:TECN
Tecan — Investor Day (September 2013)
114 slides from Tecan's investor day presentation, Sep 11, 2013
Slide 1: Capital Markets Day
September 11, 2013 Capital Markets Day Tecan Group AG
Slide 2: Agenda
September 11, 2013 / p2 / Capital Markets Day Agenda • Setting the Basis for Future Accelerated Growth • Dr. David Martyr, CEO • P14: A Major Development Program in Our Partnering Business • Dr. David Martyr, CEO • Dako Omnis: Setting New Standards in Automated Advanced Staining • Britt Meelby Jense
Slide 3: Setting the Basis for Future Accelerated Growth
Capital Markets Day 2013 Setting the Basis for Future Accelerated Growth Dr. David Martyr, CEO
Slide 4: A Leading Global Provider of Laboratory Automation
September 11, 2013 / p4 / Capital Markets Day A Leading Global Provider of Laboratory Automation • A pioneer of laboratory automation for more than 30 years • Largest installed base of liquid handling platforms and a leading position for microplate readers and washers • Strong brand recognition and
Slide 5: Tecan's Two Strong Business Pillars
September 11, 2013 / p5 / Capital Markets Day Tecan’s Two Strong Business Pillars Life Sciences Business Partnering Business • Focused on all end-user activities • Focused on all OEM activities • Products marketed under the Tecan • Products sold by partners under brand through own sales & service th
Slide 6: Tecan's Business is Supported by Megatrends
September 11, 2013 / p6 / Capital Markets Day Tecan’s Business is Supported by Megatrends Increased incidence of diseases Aging population is increasing stimulate discovery of novel drugs demand for healthcare Increased test volumes, people also tested over a longer period of time Major investments
Slide 7: Revenue Profile Provides a Solid Basis
September 11, 2013 / p7 / Capital Markets Day Revenue Profile Provides a Solid Basis End Markets Products Geographies 3% 11% 9% 14% 11% 58% 22% 69% 41% 20% 42% Diagnostics Pharma Instruments North America Asia Biotech + CROs Academia Services & spare parts Europe Other Plastic consumables Benefittin
Slide 8: Setting the Basis for Future Accelerated Growth
September 11, 2013 / p8 / Capital Markets Day Setting the Basis for Future Accelerated Growth • Refining strategy to outgrow current size of around CHF 400m in sales • Sharpening prioritization • Building the right leadership team Strategy Priorities People • For sustainable • Setting clear prioriti
Slide 9: People: Strengthening the Management Team
September 11, 2013 / p9 / Capital Markets Day People: Strengthening the Management Team • Dr. Klaus Lun, Executive VP, Head Corporate Development • Joined Tecan as member of the Management Board on June 4, 2013 • 2011-2013: VP Drug Discovery and Bioresearch and VP Global Product Marketing at Molecul
Slide 10: Setting Clear Priorities for 2013
September 11, 2013 / p10 / Capital Markets Day Setting Clear Priorities for 2013 Commence instrument shipments for P14 Commence instrument shipments for Dako Omnis (P16) Continue to drive components business Increase sales momentum in China Improving the innovation process
Slide 11: P14: A Major Development Program in Our Partnering Business
Capital Markets Day 2013 P14: A Major Development Program in Our Partnering Business Dr. David Martyr, CEO
Slide 12: Priorities 2013: Commence Instrument Shipments for P14
September 11, 2013 / p12 / Capital Markets Day Priorities 2013: Commence Instrument Shipments for P14 ORTHO VISIONTM platform P14 = for Ortho Clinical Diagnostics ORTHO AutoVue and ORTHO Vision are trademarks of Ortho-Clinical Diagnostics, Inc.
Slide 13: Priorities 2013: Commence Instrument Shipments for P14
September 11, 2013 / p13 / Capital Markets Day Priorities 2013: Commence Instrument Shipments for P14 • Ortho Clinical Diagnostics is the global market leader in immunohematology • Tecan developed and is currently supplying the fully automated ORTHO AutoVue® Innova for markets outside the US • Blood
Slide 14: Priorities 2013: Commence Instrument Shipments for P14
September 11, 2013 / p14 / Capital Markets Day Priorities 2013: Commence Instrument Shipments for P14 • The new ORTHO VISIONTM platform will be rolled-out by OCD globally, therefore extending the potential for Tecan • A special focus is to penetrate emerging markets as majority of labs are still man
Slide 15: Priorities 2013: Commence Instrument Shipments for P14
September 11, 2013 / p15 / Capital Markets Day Priorities 2013: Commence Instrument Shipments for P14 • Ortho VISIONTM platform is in an advanced stage of development • Prototypes currently undergoing validation and verification • Target delivery of pilot instruments before the end of 2013 • Deliver
Slide 16: P14: Activities 2014 and Beyond
September 11, 2013 / p16 / Capital Markets Day P14: Activities 2014 and Beyond • Production ramp-up and support of Ortho Clinical Diagnostics for roll-out throughout 2014 and beyond • Platform extensions • Additional instrument variant ORTHO VISIONTM Max • Additional features and enhancements to pla
Slide 17: Dako Omnis: Setting New Standards in Automated Advanced Staining
Capital Markets Day 2013 Dako Omnis: Setting New Standards in Automated Advanced Staining Britt Meelby Jensen, General Manager, VP, Dako
Slide 18: Welcome to Dako
Welcome to Dako Relentless in our commitment to fight cancer - Together
Slide 19: Dako: Driving Firsts in Scientific Advancement
Dako: Driving Firsts in Scientific Advancement for more than 46 Years… IHC & ISH system - Dako Omnis 2013 Lab-wide control - DakoLink Path 2013 Fast ISH - IQFISH pharmDx™ 2012 Automated Special Stains - Artisan™ Link Pro 2012 Automated H&E - Dako CoverStainer 2010 ISH for bright field microscopy - D
Slide 20: Agilent has formed a new fourth group that includes Dako
Agilent has formed a new fourth group that includes Dako and Agilent Genomics • Wireless technologies • Mobile phone R&D and manufacturing • Aerospace/defense systems and maintenance FY12 Revenue Electronic Measurement Group • Computer & industrial research & manufacturing $3.3B • Food safety, quali
Slide 21: Understanding Customers and Responding to Market Trends
Understanding Customers and Responding to Market Trends Drives our Development Increasing number of cancer cases Meet workflow and Escalating healthcare costs technology demands with Scientific Advancement Increasing demands from patient care groups and governments Emphasis on lean & optimization Pr
Slide 22: Dako Staining Solutions Optimize the Anatomical Pathology Workflow
Dako Staining Solutions Optimize the Anatomical Pathology Workflow Pathology Lab Workflow Progression of Staining Processing Grossing Embedding Lab Task Outcome Doctor/ Oncologist Primary Diagnosing Staining Surgery Sectioning Special Diagnosing Specimen Receiving Staining Special Cases and Data Ent
Slide 23: We Listen to our Customer's Challenges and Respond to their Needs
We Listen to our Customer´s Challenges and Respond to their Needs Availability of broader reagent menu and Significant fluctuations in daily/monthly test more advanced technologies volumes Growing volumes in molecular testing Pressure on faster TAT from biopsy to diagnosis Need for increas
Slide 24: Excellent Channel Access will Drive Growth in High-Value Pathology Labs
Excellent Channel Access will Drive Growth in High-Value Pathology Labs Dako has access to the ~2,800 high-value IHC Slide Volume labs which constitute 600 900 < 1,000 the majority of the market by value 1,000 – 5,000 1,300 4,900 5,000 – 10,000 10,000 – 20,000 > 20,000 4,400 Characteristics of Anato
Slide 25: Dako has a Clear Focus on the Advanced Staining Segment
Dako has a Clear Focus on the Advanced Staining Segment Pathology Market Segment Size (MUSD) – 2012E* Staining size = 200K (USD) 160 2.800 20 280 Value growth - % 1.100 ISH 15 IHC 10 Imaging H&E 120 5 Special Stains 440 700 0 Advanced staining segment 0 20 40 60 520 540 560 Histo staining Test Volum
Slide 26: Dako Omnis: Brings Time, Choice & Better Patient Care
Dako Omnis: Brings Time, Choice & Better Patient Care to our Customers DakoLink™ Software Automation Dako Omnis Solution Antibodies Time Workflow Enhancement Choice Better Patient Care 9
Slide 27: Dako Omnis: Redefines Advanced Staining Solutions
Dako Omnis: Redefines Advanced Staining Solutions Status visual Touch screen for alerts complete instrument control On-board mixing Load up to 60 of reagents and slides in first hour fluids 5 slides per rack – More efficient 60 temperature patient case controlled reagent management positions Separat
Slide 28: KOL Feedback Underlines That Dako Omnis Addresses Lab Needs
KOL Feedback Underlines That Dako Omnis Truly Addresses the Needs of the Lab Omnis: The Solution Omnis: Improved Workflow “It´s quiet: I´m very “ FISH and Immuno on the impressed with the same day… perfect!” quality of the finished Michael La Frinere product” Jim Burchette Omnis: User Friendliness D
Slide 29: Multiple Customers Will Benefit from the Dako Omnis Solution
Multiple Customers Will Benefit from the Dako Omnis Solution Distribution of customer segments Large accounts with >30,000 IHC 1 slides/year and ISH business Accounts with sizable IHC 2 business and ISH business Other strategically important 3 accounts (i.e. Dako reference sites/ key opinion leader
Slide 30: Global Commercial Launch of Dako Omnis Initiated
The Global Commercial Launch of Dako Omnis is Successfully Initiated in Key Reference Sites Wave III Wave II Wave I Omnis seed sites 13
Slide 31: Dako Provides Unique and Flexible Solutions across the Pathology Lab
Dako Provides Unique and Flexible Solutions across the Entire Anatomical Pathology Lab ISH IHC Special Stains Reagents Instruments H&E DakoLink™ Software Software TPID 14
Slide 32: Dako Builds Commercial Partnerships with Key Strategic Partners
Dako – Is On A Better Path™ and Continues to Build Commercial Partnerships with Key Strategic Partners Building lasting partnerships with pharma is a cornerstone in the strategy to lead within the area of companion diagnostics Dako pharmDx™ is preferred for clinical trials Largest number of Comp
Slide 33: Tecan / Dako Partnership
Tecan / Dako Partnership Feasibility Hardware Validation on Prototype I Prototype II CE/IVD Product project kick- concept / 0-series testing testing registration release off solution instrument Jan Oct Jun Apr Jan Jul Sep 2010 2010 2011 2012 2013 2013 2013 Why Tecan : Working with Tecan: •Applicatio
Slide 34: Behind Every Stain there is a Face
At Dako We Understand that Behind Every Stain there is a Face 17
Slide 35: Relentless in our commitment to fighting cancer. Together.
Relentless in our commitment to fighting cancer . Together.
Slide 36: Dako Omnis: Setting New Standards in Automated Advanced Staining
Capital Markets Day 2013 Dako Omnis: Setting New Standards in Automated Advanced Staining Dr. David Martyr, CEO
Slide 37: Priorities 2013: Commence Instrument Shipments for P16
September 11, 2013 / p19 / Capital Markets Day Priorities 2013: Commence Instrument Shipments for P16 • P16 = Dako Omnis for Dako • Building on Tecan’s strong application know-how in the IHC/ISH segment • Tecan was able to leverage slide processing expertise from the Life Sciences Business into the
Slide 38: Strong Partnership as the Basis for Success
September 11, 2013 / p20 / Capital Markets Day Strong Partnership as the Basis for Success • Establishing a solid partnership already prior to actual product development • Extensive workshops with teams of both companies for planning and exchange of knowledge • Thorough concept development and feasi
Slide 39: Tecan and Dako: Activities 2013 and Beyond
September 11, 2013 / p21 / Capital Markets Day Tecan and Dako: Activities 2013 and Beyond • First instruments for market launch delivered in June 2013 • Production of Omnis instruments and support of Dako for “full swing launch” in Q3 2013 • Close interaction between Dako global support & complaint
Slide 40: Continuing to Drive Our Partnering Business: Components
Capital Markets Day 2013 Continuing to Drive Our Partnering Business Focus Topic: Components Nicholas Smith Head of Global Marketing and Portfolio Management, Partnering Business
Slide 41: Tecan Has a Long History as a Leading OEM Company
September 11, 2013 / p23 / Capital Markets Day Tecan Has a Long History as a Leading OEM Company • Tecan has pursued the OEM business since the formation of the company more than 30 years ago • Tecan Cavro® brand components which have been part of the Tecan Group since 1987, celebrated their 40th an
Slide 42: Trend Toward Outsourcing Development and Production
September 11, 2013 / p24 / Capital Markets Day Trend Toward Outsourcing Development and Production • Today the majority of the IVD IVD Instrumentation Market* instrument market is still „captive“, i.e. ~$ 8bn* in-house developments by large IVD ~$ 6bn* companies „captive“ • However the trend towards
Slide 43: Tecan's Broad OEM Product Portfolio
September 11, 2013 / p25 / Capital Markets Day Tecan’s Broad OEM Product Portfolio Enabled Solutions • Innovative technologies like eFluidics™ developed by Tecan and showcased to potential partners Dedicated Solutions Plastic Consumables Customer Service & Spare Parts Platform-based Solutions OEM Co
Slide 44: Expanding OEM System Portfolio Driving Sales Growth
September 11, 2013 / p26 / Capital Markets Day Expanding OEM System Portfolio Driving Sales Growth New and upcoming Building on a broad base of supply contracts, including… major launches ORTHO AutoVue® Innova m2000sp m24sp MUREX® Dako Omnis BD PrepStain™ Slide PROCLEIX SP® (P16) Processor QWALYS 3
Slide 45: Partnering Business Sales Split 2012
September 11, 2013 / p27 / Capital Markets Day Partnering Business Sales Split 2012 Segment sales by products Segment sales by product groups 6% 6% 7% 5% 21% 55% 42% 32% 26% Liquid Handling Systems Instruments Components (incl. spare parts) Components (excl. spare parts) Detection Services and spare
Slide 46: Components
September 11, 2013 / p28 / Capital Markets Day Components Focus topic: Components
Slide 47: Focus Topic: Components, a 2013 Priority
September 11, 2013 / p29 / Capital Markets Day Focus Topic: Components, a 2013 Priority • Tecan supplies laboratory instrument manufacturers with essential components such as pumps, valves, robotic modules and small systems • With 2012 sales of more than CHF 50 million, Tecan’s Cavro® brand is the m
Slide 48: Tecan Cavro Range of Products and Services
September 11, 2013 / p30 / Capital Markets Day Tecan Cavro® range of Products and Services • Single Components to Fully Customized Systems • Easy Integration and Seamless Interfaces • Design Services Components • Spare Parts
Slide 49: Broad portfolio of high-quality components
September 11, 2013 / p31 / Capital Markets Day Broad portfolio of high-quality components • The Tecan Cavro® range of components covers multiple different customer Components applications Pumps, valves, pipetting modules • Highest performance is delivered by utilising state-of- the-art technologies
Slide 50: Components Customer Profile – LC Tech GmbH
September 11, 2013 / p32 / Capital Markets Day Components Customer Profile – LC Tech GmbH • LCTech GmbH, Dorfen, Germany • A supplier of products and methods to the food, feed and environmental testing markets Components • Incorporated a Cavro Omni Robot and Cavro XLP Pump into their latest FREESTYL
Slide 51: Recent wins: Impact of NGS
September 11, 2013 / p33 / Capital Markets Day Recent wins: Impact of NGS • The explosion of demand for next-generation sequencing methods in many areas of Life Sciences has stimulated the development of instrumentation in this field • With numerous companies developing sequencers and Components ass
Slide 52: Components strategy – driving sustainable growth
September 11, 2013 / p34 / Capital Markets Day Components strategy – driving sustainable growth… • Product line renewal and expansion Maintain current customer base • Strengthen strategic account planning and key account management • Leverage co-operation with instruments sales-team to expand market
Slide 53: Partnering Business – well positioned for future growth
September 11, 2013 / p35 / Capital Markets Day Partnering Business – well positioned for future growth…
Slide 54: Partnering Business Strategy and Focus
September 11, 2013 / p36 / Capital Markets Day Partnering Business Strategy and Focus MISSION Elevate the value of our partners’ laboratory workflow solutions by being the trusted and reliable OEM “partner of choice” Core Industries & Core Customer Solutions Value Segments Processes Scope Propositio
Slide 55: Increasing awareness of OEM - Tecan at the AACC
September 11, 2013 / p37 / Capital Markets Day Increasing awareness of OEM - Tecan at the AACC* • Focus on Partnering Business and clinical diagnostics • Promotion of Tecan’s capabilities in workflow automation • Partner instrument Dako OMNIS shown • Feedback • Strong lead generation and booth traff
Slide 56: New partnerships I
September 11, 2013 / p38 / Capital Markets Day New partnerships I • San Francisco-based diagnostics company, first to commercialize single molecule counting (SMC) technology • SMC applications include ultrasensitive immunoassays for CVD and other chronic disease monitoring • Tecan development integr
Slide 57: New partnerships II
September 11, 2013 / p39 / Capital Markets Day New partnerships II • Finnish diagnostics company with over 30 years experience in EIA • Strategic partnership with Trivitron Healthcare, the largest medical technology company of Indian origin • Partnership with Tecan to automate enzyme- immunoassays i
Slide 58: New partnerships III
September 11, 2013 / p40 / Capital Markets Day New partnerships III Detection in Life Science • OEM partnership with a leading company in Life Sciences • Solution offers tailored MTP reading functionality based on the Tecan Infinity F200 reader • Our partner chose Tecan due to rapid development time
Slide 59: Pipeline
September 11, 2013 / p41 / Capital Markets Day Pipeline Well-stocked pipeline of opportunities currently in progress… Target Segment • Multiple platform- 1 based projects in the Target concept phase Segment 2 • Exploration of OEM Project 1 Target Segment 3 Contract opportunities in negotiation Proje
Slide 60: Partnering Business - Summary
September 11, 2013 / p42 / Capital Markets Day Partnering Business - Summary • Positive trend towards outsourcing particularly in clinical diagnostics continues to be seen • Major projects P14 and P16 reaching market launch • Well-stocked and balanced pipeline with increased number of platform-based
Slide 61: Capitalizing on Investments into Healthcare in China
Capital Markets Day 2013 Capitalizing on Investments into Healthcare in China Jonathan Qu, Head of Market Unit Commercial Operations, Asia Pacific
Slide 62: Priorities 2013: Increase Sales Momentum in China
September 11, 2013 / p44 / Capital Markets Day Priorities 2013: Increase Sales Momentum in China • Tecan has been operating a representative office in Beijing since 2004 • Since fall 2008 Tecan has an own legal entity in Shanghai • With an expanding direct presence, sales were growing with a CAGR of
Slide 63: Building the Tecan China Team
September 11, 2013 / p45 / Capital Markets Day Building the Tecan China Team • Significant increase of headcount in all customer-facing functions, only to a limited extend in G&A • Jonathan Qu, new Head of Market Unit Commercial Operations, Asia Pacific since summer 2013 • 2012-2013: General Manager
Slide 64: Healthcare Spending in China
September 11, 2013 / p46 / Capital Markets Day Healthcare Spending in China The largest healthcare markets in the world Healthcare spending as a % of GDP • China represents the fourth largest • Small spending per capita compared healthcare market in the world to most countries • China expected to be
Slide 65: Major Investments Into Healthcare
September 11, 2013 / p47 / Capital Markets Day Major Investments Into Healthcare Top 20 provinces for industrial sector growth • China GDP continues to grow at solid level • Continued major investments into healthcare • Intense government focus on lab infrastructure built-out and academic research •
Slide 66: Sales Development And Products in China
September 11, 2013 / p48 / Capital Markets Day Sales Development And Products in China Sales Development in China • Currently, vast majority of revenues 50 generated in Life Sciences Business 40 CAGR >25% >40m • Partnering Business started at almost 0% of sales in 2010, but is 30 growing disproporti
Slide 67: Tecan's Key End-Customer Segments in China
September 11, 2013 / p49 / Capital Markets Day Tecan’s Key End-Customer Segments in China Large Hospital Clinical and Research Labs >50% of Life Sciences Business sales Academia Biopharma and CROs Blood Banks Centers for Disease Control (CDC) and China Inspection & Quarantine Services (CIQ)
Slide 68: Large Hospitals Are Tecan's Biggest Customer Segment
September 11, 2013 / p50 / Capital Markets Day Large Hospitals Are Tecan’s Biggest Customer Segment China Hospital System • Tecan is the market leader for lab automation in large hospitals in China • The hospital system is huge and Tier III 1399 still underdeveloped • Focus on Tier III and large 1st
Slide 69: Increasing Number of Large Hospitals and Utilization
September 11, 2013 / p51 / Capital Markets Day Increasing Number of Large Hospitals and Utilization Number of Tier III Hospitals • Number of large hospitals is 1500 growing steadily 1400 1284 1399 • With increased demand for 1300 1182 1192 1233 healthcare, large hospitals often 1200 1100 are still o
Slide 70: Growing Government R&D Funding in Academia
September 11, 2013 / p52 / Capital Markets Day Growing Government R&D Funding in Academia • Academia is still an underpenetrated market for lab automation • Increase of research spending in Academia is part of the 12th five-year plan • Government funded Life Science R&D funding in China is estimated
Slide 71: KOL Activities in Academia: Fudan University Shanghai
September 11, 2013 / p53 / Capital Markets Day KOL Activities in Academia: Fudan University Shanghai • Tecan and Fudan University have opened a demonstration lab in the University’s School of Pharmacy • The lab is equipped with state-of-the- art instruments for researchers in drug discovery • It ser
Slide 72: Increased Local Presence And New Location
September 11, 2013 / p54 / Capital Markets Day Increased Local Presence And New Location • Tecan moved to a new site in Shanghai in 2012 • Better accommodating bigger China team, space to expand • Meeting business requirements better • Supporting customers with demo room and training facilities • Ce
Slide 73: Also Increasing Virtual Local Presence Since 2013
September 11, 2013 / p55 / Capital Markets Day Also Increasing Virtual Local Presence Since 2013
Slide 74: Why We Win in China
September 11, 2013 / p56 / Capital Markets Day Why We Win in China • Tecan is market leader in Lab Automation with a strong brand • Increased coverage of the market; doubled headcount since beginning of 2012 and continue to grow mainly in customer-facing positions • Dedicated and experienced team •
Slide 75: Improving the Innovation Process
Capital Markets Day 2013 Improving the Innovation Process Dr. Stefan Traeger, Executive VP, Head Life Sciences Business
Slide 76: From Product Supplier to Solution Provider
September 11, 2013 / p58 / Capital Markets Day From Product Supplier to Solution Provider Tecan is active in attractive markets. Long-term macro-trends (aging population, increased wealth creation emerging markets) foster sustainable growth for years to come. A WINNER in our markets enables and prov
Slide 77: Our Customers and their applications
September 11, 2013 / p59 / Capital Markets Day Our Customers… Clinical Pharma, Biotech, Academic Applied Diagnostics and CRO`s Research Markets …and their applications Stem Forensics FISH ELISA Cells Cell-line Genome …and Proteomics Sequencing many picking more
Slide 78: At Tecan, we are modernizing our innovation process
September 11, 2013 / p60 / Capital Markets Day At Tecan, we are modernizing our innovation process From large projects and «big bang» platform launches… Apps Apps Apps Apps System Software System Software Air LiHa L-LiHa MCA`s Washer Shaker Reader Robotic Platform …to a series of Application-oriente
Slide 79: Advantages for our Customers and Tecan
September 11, 2013 / p61 / Capital Markets Day Advantages for our Customers • Well-tested, tailormade packages for specific applicative needs • Only buy what I need today, and can upgrade to a new application later Advantages for Tecan • Have a cadence of innovation steps that keeps us in the news a
Slide 80: Modernizing innovation: Lean management in project management
September 11, 2013 / p62 / Capital Markets Day At Tecan, we are modernizing our innovation process Implementing LEAN MANAGEMENT tools in Project Management •Visual Management Boards •Weekly Review Meetings •Monthly Steering Committee Implementing LEAN tools enable better Project Management
Slide 81: Modernizing innovation: Agile in software development
September 11, 2013 / p63 / Capital Markets Day At Tecan, we are modernizing our innovation process Implementing LEAN MANAGEMENT tools in Software Development AGILE/SCRUM process: •SPRINT and SPRINT BOARDS •Daily stand-up meetings •Progress in burn-down charts Implementing AGILE makes our Software De
Slide 82: Project Myrius – Tecan's new LiHa Platform
September 11, 2013 / p64 / Capital Markets Day Project Myrius – Tecan`s new LiHa Platform developed using our new innovation processes Old approach 2014 2015 2016 Apps Apps Apps Apps System Software System Software Air LiHa L-LiHa MCA`s Washer Shaker Reader Robotic Platform New approach 2014 2015 20
Slide 83: Journey from Product Supplier to Solution Provider
September 11, 2013 / p65 / Capital Markets Day We are on a journey to change Tecan from a Product Supplier to a Solution Providor. APPLICATION-ORIENTED INNOVATION: We centre our innovation work around application-oriented packages dedicated to the specific needs of our customers in future. LEAN MANA
Slide 84: Strategy & Vision to Grow Sales and Profitability
Capital Markets Day 2013 Strategy & Vision to Grow Sales and Profitability Dr. David Martyr, CEO
Slide 85: Strategy and Vision
September 11, 2013 / p67 / Capital Markets Day Strategy and Vision • Refining strategy, not developing a completely new strategy • Sharpening prioritization, focus, execution planning and delivery Life Sciences Business Partnering Business • Fixing innovation engine • Continue to add new OEM account
Slide 86: Strategy and Vision: Key Elements Discussed Today
September 11, 2013 / p68 / Capital Markets Day Strategy and Vision Key Elements Discussed Today Solutions M&A Operations • Evolving into a • Driving appropriate • Build on solid base solutions business thoughtful M&A • Improve operational • Broader range of • Catalyst to core excellence applications
Slide 87: Solutions and Increasing Recurring Revenues
September 11, 2013 / p69 / Capital Markets Day Solutions and Increasing Recurring Revenues • Consumables and reagents are an important part of a solution offering • Today, Tecan generates the majority of its consumables revenue with disposable pipetting tips • Those consumable revenues were growing
Slide 88: Leading and Growing Disposable Tip Business
September 11, 2013 / p70 / Capital Markets Day Leading and Growing Disposable Tip Business • Use of high-quality disposable tips improve data quality and makes test results reproducible • In diagnostics applications they are part of the validated system • In 2012, consumables generated 9% of total s
Slide 89: New Higher Value Consumable: AC Extraction Plate
September 11, 2013 / p71 / Capital Markets Day New Higher Value Consumable: AC Extraction Plate • The AC Extraction Plate has been developed within our FEMS program (Front End to Mass Spectrometry) • It is a 96-deepwell microplate coated with material that has unique absorption properties • The targ
Slide 90: eFluidics, a New Proprietary Technology
September 11, 2013 / p72 / Capital Markets Day eFluidics™, a New Proprietary Technology • Tecan has developed a new proprietary liquid handling technology based on electrowetting or Digital Micro Fluidics: eFluidics™ • Technology development is successfully completed • eFluidics™ is covered by 10 fa
Slide 91: eFluidics For Our Partnering Business
September 11, 2013 / p73 / Capital Markets Day eFluidics™ For Our Partnering Business • eFluidics™ enables the development of a new platform of small, low cost instrumentation for numerous applications • The technology is targeted to low to mid throughput applications, complementing Tecan’s standard
Slide 92: Advantages of Electrowetting Based Molecular Biology
September 11, 2013 / p74 / Capital Markets Day Advantages of Electrowetting Based Molecular Biology Faster NA Extraction Magnet holds beads with bound DNA Permanent magnet while EW removes drop with under PCB unbound DNA. Drop w/ beads Typical extraction in <~5 min Faster Amplification Solutions Den
Slide 93: Advantages of Tecan's Proprietary eFluidics Technology
September 11, 2013 / p75 / Capital Markets Day Advantages of Tecan’s Proprietary eFluidics™ Technology • eFluidics™ is a unique technology placing film between electrowetting electrodes and liquids • Other electrowetting implementations move fluids on coated PCB, glass or plastic substrates containi
Slide 94: Strategy and Vision: Key Elements Discussed Today
September 11, 2013 / p76 / Capital Markets Day Strategy and Vision Key Elements Discussed Today Solutions M&A Operations • Evolving into a • Driving appropriate • Build on solid base solutions business thoughtful M&A • Improve operational • Broader range of • Catalyst to core excellence applications
Slide 95: Using M&A as Competitive Advantage
September 11, 2013 / p77 / Capital Markets Day Using M&A as Competitive Advantage • Key element of the corporate strategy • Executed in a very structured and disciplined approach • Corporate strategy to inform on areas of focus • Active identification of targets and build-up of target funnel • Culti
Slide 96: Areas of Focus: M&A Possible Along Several Vectors
September 11, 2013 / p78 / Capital Markets Day Areas of Focus: M&A Possible Along Several Vectors Technology / Products Bolt-on’s to Life Science and Partnering Business that leverage key strengths (Channel, Products) where Tecan is an advantaged owner M&A Transformative / Adjacencies Commercial Exp
Slide 97: Framework to Define Areas of Attractiveness: Life Science Market
September 11, 2013 / p79 / Capital Markets Day Different Ways to Look at the Life Science Market - Framework to Define Areas of Attractiveness Selected Lab. Equipment Atomic Spectroscopy Low Gen. Analytical Techniques Mass Spectrometry Molecular Spectroscopy synergies Technical Surface Materials Sci
Slide 98: Framework to Define Areas of Attractiveness: IVD End-Market
September 11, 2013 / p80 / Capital Markets Day Different ways to look at the IVD End-Market - Framework to Define Areas of Attractiveness M&A to broaden Tecan’s ability to be competitive across the full diagnostic space High 5 1 4 attractiveness Sub-segment 8 9 19 25 18 10 M&A 24 23 2 32 12 20 13 11
Slide 99: Tecan is a Key Enabler in Several Life Science Areas
September 11, 2013 / p81 / Capital Markets Day Tecan is a Key Enabler in Several Life Science Areas Potential Potential workflow workflow for for Tecan T T to to Sample expand to expand into expand intointo collection Sample Sample preparation collection Sample Data Sample preparation interpretation
Slide 100: Tecan's Focus Areas Include Consumables/Reagents
September 11, 2013 / p82 / Capital Markets Day Tecan’s Focus Areas Include Consumables/Reagents Where We Can Add Value With Our Instrumentation • Leverage broad application know-how and experience to develop assay specific solution optimized for a platform • Assay specific end-markets to drive selec
Slide 101: Target Acquisitions Could Have the Following Characteristics
September 11, 2013 / p83 / Capital Markets Day Target Acquisitions Could Have the Following Characteristics • High consumables/reagents content to leverage installed instrument base (Increasing % of sales to recurring revenue) • Complements existing product offerings (Expansion of addressable market
Slide 102: M&A Current Status/Activities
September 11, 2013 / p84 / Capital Markets Day Current Status/Activities • Actively involved in several discussions • Build team • Refine M&A strategy • Drive corporate strategy 2014-18 M&A
Slide 103: Strategy and Vision: Key Elements Discussed Today
September 11, 2013 / p85 / Capital Markets Day Strategy and Vision Key Elements Discussed Today Solutions M&A Operations • Evolving into a • Driving appropriate • Build on solid base solutions business thoughtful M&A • Improve operational • Broader range of • Catalyst to core excellence applications
Slide 104: Improving Operational Excellence
September 11, 2013 / p86 / Capital Markets Day Improving Operational Excellence • A more efficient innovation process is a high priority • Net R&D costs have peaked in 2012 and are trending down again • But, Tecan needs to further improve operational excellence to counter Operational Excellence head
Slide 105: Enough Space to Grow
September 11, 2013 / p87 / Capital Markets Day Enough Space to Grow • Tecan has three development and production sites and one dedicated software development center • Those sites provide enough space for the foreseeable future Operational Excellence Männedorf/Zurich, CH Grödig/Salzburg, AT San Jose,
Slide 106: Established Business Infrastructure Provides Excellent Basis
September 11, 2013 / p88 / Capital Markets Day Established Business Infrastructure Provides Excellent Basis • Existing business infrastructure can support our growth • Tecan has established in all locations a fully integrated SAP-based ERP • Sales, service, production and finance work on the same pl
Slide 107: Outlook and Summary
Capital Markets Day 2013 Outlook and Summary Dr. David Martyr, CEO
Slide 108: Review of H1 2013 Financial Performance
September 11, 2013 / p90 / Capital Markets Day Review of H1 2013 Financial Performance • Stable sales in tough market environment • As anticipated, Q1 was difficult; austerity measures unsettled the markets • Positive trend in Q2 with double-digit sales growth • Continued significant growth in China
Slide 109: 2013: Key Challenges and Positive Performance Drivers
September 11, 2013 / p91 / Capital Markets Day 2013: Key Challenges and Positive Performance Drivers • Overall, in H1 challenges and growth drivers played out about as expected • Individually, some were more pronounced than anticipated Key Positive Performance Challenges Drivers • Challenging econom
Slide 110: Outlook for 2013
September 11, 2013 / p92 / Capital Markets Day Outlook for 2013 • Market environment continues to be challenging • Purchasing cycles remains long and timing of orders hard to predict • 2013 sales development even more skewed to H2 than 2012 • Delivery of sales forecast depends on strong Q4 2013 Sale
Slide 111: Medium-Term Targets for 2015
September 11, 2013 / p93 / Capital Markets Day Medium-Term Targets for 2015 At current exchange rates: Sales of around CHF 500 million and increased profitability • Medium-term targets not seen as affected by 2013 headwinds • Major organic growth drivers are intact, potential M&A not included • Grad
Slide 112: First Year Review of CEO
September 11, 2013 / p94 / Capital Markets Day First Year Review of CEO • Challenging economic/business environment • Significant progress in key development projects • Fixing the “innovation engine” continues to be a top priority • New people and skills are strengthening our capabilities • Executio
Slide 113: Summary and Conclusion
September 11, 2013 / p95 / Capital Markets Day Summary and Conclusion • Tecan is a recognized global leading provider of laboratory instruments and a top brand in the life sciences industry • Well positioned to capture multiple growth opportunities • New strong management team • Refining strategy an
Slide 114: Safe Harbor Statement
Safe Harbor Statement All statements in this presentation not referring to historical facts are predictions of the future and constitute no guarantee whatsoever of future performances. They are subject to risks and uncertainties including, but not limited to, future global economic conditions, excha