Qiagen N.V. · NYSE:QGEN
Qiagen — Q1 2014 Earnings Presentation
29 slides from Qiagen's earnings presentation, May 7, 2014
Slide 1: First quarter 2014 results
Sample & Assay Technologies First quarter 2014 results May 7, 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 Presentation Peer Schatz, CEO Roland Sackers, CFO Q&A session First quarter 2014 results 3
Slide 4: Q1 2014: Overview
Sample & Assay Technologies Q1 2014: Overview Financial results(1) In $ millions Change Q1 2014 Q1 2013 (except EPS) $ (CER) +5% Adjusted net sales 317.4 303.6 (+5% CER) Adjusted operating income 74.8 69.8 7% Adjusted diluted EPS (In $ per share) 0.22 0.20 Overview Achieved Q1 2014 targets Adjus
Slide 5: Q1 2014: Customer classes
Sample & Assay Technologies Q1 2014: Customer classes Q1 2014 adjusted net sales: $317.4 million Top five growth drivers QIAsymphony: Growing sales of consumables and instruments MDx QuantiFERON-TB: On track for $100 million of annual sales ~36% of sales +13% CER PHC: Higher companion diagno
Slide 6: Q1 2014: Key results
Sample & Assay Technologies Q1 2014: Key results In $ millions Change Q1 2014 Q1 2013 (Except EPS) $ (CER) +5% Growth in all regions and customer classes Adjusted net sales 317.4 303.6 (+5% CER) Adjusted gross profit 229.8 218.4 +5% Adjusted gross profit margin 72% 72% Supporting investments in 5 gr
Slide 7: Q1 2014: Geographic results
Sample & Assay Technologies Q1 2014: Geographic results Europe / Middle East / Africa +3% CER / 33% of adjusted net sales • France, UK, Nordic region • QIAsymphony and Personalized Healthcare • Academia and Pharma Americas • Southern Europe +4% CER / 47% of adjusted net sales • Brazil and U.S. Asia-
Slide 8: Q1 2014: Consumables and instruments results
Sample & Assay Technologies Q1 2014: Consumables and instruments results Consumables and related revenues Instruments ~89% ~11% All customer classes with Higher sales in Pharma, +5% CER +3% CER underlying consumables growth Molecular Diagnostics and Applied Testing Contributions from Ingenuity
Slide 9: Convertible bonds strengthen balance sheet at low rates
Sample & Assay Technologies Convertible bonds strengthen balance sheet at low rates QIAGEN group debt instruments March 2014: Convertible bond transactions Repayment of 2026 Notes at 3.25% coupon and $20 conversion Eliminates 15 million of related potential share dilution Very low rates and $3
Slide 10: Q1 2014: Balance sheet and free cash flow
Sample & Assay Technologies Q1 2014: Balance sheet and free cash flow As of March 31 2014 2013 Leverage ratio: Net debt / EBITDA(1) Group liquidity (In $ millions) 678 461 3.5 3.3 Net debt (In $ millions) 509 405 3.03 Shareholder equity ratio 61% 67% 2.5 2.5 2.2 Net debt / adjusted EBITDA ratio 1.2
Slide 11: 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 12: Q1 2014: Many new product approvals and launches
Sample & Assay Technologies Q1 2014: Many new product approvals and launches QIAsymphony RGQ MDx platform (FDA clearance) QIAsymphony artus C. difficile QS-RGQ MDX Kit (FDA clearance) Personalized Healthcare therascreen EGFR RGQ PCR Kit (China launch) (PHC) Exosome Sample Technology kits (Global lau
Slide 13: QIAsymphony: Expanding test menu and placements
Sample & Assay Technologies QIAsymphony: Expanding test menu and placements Selected Molecular Diagnostics projects On track for 250 new placements in 2014 Product EU status U.S. status QIAsymphony RGQ 2012: Q1 2014: Launched 510(k) clearance NEW C. difficile Q4 2013: Q1 2014: Launched 510(k) cl
Slide 14: Personalized Healthcare: Leader in companion diagnostics
Sample & Assay Technologies Personalized Healthcare: Leader in companion diagnostics Expanding Personalized Healthcare portfolio Increased oncology trials biomarker use 1,600 45 QIAGEN’s companion diagnostic project portfolio with pharma companies has... 1,400 40 35 Number of oncology trials 1,200 P
Slide 15: Development and expansion of our NGS portfolio
Sample & Assay Technologies Development and expansion of our NGS portfolio Transforming biological samples into valuable molecular insights Sample preparation Sample Target Library Data analysis, Sequencing technologies enrichment construction interpretation and reporting NEW NEW 5 launches Q1 2014
Slide 16: Changes to the Supervisory Board
Sample & Assay Technologies Changes to the Supervisory Board Prof. Dr. Dr. h.c. Detlev Riesner Co-founder of QIAGEN, Chairman since 2003 Steps down as Chairman of Supervisory Board Dr. Werner Brandt Member since 2007 New Chairman of Supervisory Board Prof. Dr. Elaine Mardis Co-Director of The Genome
Slide 17: Q2 and full-year 2014: Outlook and assumptions
Sample & Assay Technologies Q2 and full-year 2014: Outlook and assumptions As of May 6, 2014 Q2 2014 FY 2014 outlook outlook Adjusted net sales(1) ~+4% CER ~+4-5% CER ~$0.24-0.25 CER ~$1.07-1.09 CER Adjusted diluted EPS(2) (Prior year: $0.24) (Prior year: $1.02) Amortization of acquired intellectual
Slide 18: Summary
Sample & Assay Technologies Summary Delivering innovation and growth in Q1 2014 Achieved Q1 2014 targets QIAGEN’s 5 growth drivers and portfolio overcome U.S. HPV sales trends Five growth drivers building momentum QIAsymphony driving dissemination of molecular testing Expanding leadership in
Slide 19: Appendix
Sample & Assay Technologies Appendix
Slide 20: 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 U.S. HPV sales 2014 expected 2014 rest of
Slide 21: Q2 and full-year 2014 guidance
Sample & Assay Technologies Q2 and full-year 2014 guidance As of May 6, 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 ~$1.21
Slide 22: 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 23: 2013 results: New adjustment policy
Sample & Assay Technologies 2013 results: New adjustment policy(1) 2013 adjusted results including share-based compensation expenses Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted Adjusted gross operating op. inc. pretax income net diluted net sales tax rate profit income ma
Slide 24: Q1 2014: Income statement summary
Sample & Assay Technologies Q1 2014: Income statement summary In $ millions Q1 2014 Q1 2013 Change (Unless indicated) Net sales 317.1 303.6 4% Adjusted net sales 317.4 303.6 5% Adjusted net sales (CER) 317.9 303.6 5% Gross profit 210.1 200.0 5% Adjusted gross profit 229.8 218.4 5% Operating income 4
Slide 25: Q1 2014: Reconciliation of reported to adjusted figures
Sample & Assay Technologies Q1 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 317.1 210.1 42.3 27.8 -4.5 16% 23.3 0.10 Adjustments Business integratio
Slide 26: Q1 2014: Currency impact
Sample & Assay Technologies Q1 2014: Currency impact Adjusted net sales at Adjusted net sales change Q1 2014 constant exchange rates due to currency In $ millions adjusted net sales (CER) (In $ millions) Net sales in USD 127.7 127.7 0.0 Net sales in EUR 85.4 82.0 3.4 Net sales in GBP 21.8 20.4 1.4 N
Slide 27: Employees as of March 31, 2014
Sample & Assay Technologies Employees as of March 31, 2014 Asia Pacific / Japan and Total Total Americas Europe Rest of World Q1 2014 Q1 2013 Change Production 203 588 94 885 942 -6% R&D 150 606 42 798 721 11% Sales 519 561 471 1,551 1,581 -2% Marketing 73 175 65 313 299 5% Admin 90 254 59 403 456 -
Slide 28: 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 29: 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