Slide 1: Tools to Advance Life Science Research and Regenerative Medicine
Exhibit 99.1 Tools to Advance Life Science Research and Regenerative Medicine NASDAQ HBIO August 2012 Copyright © Harvard Bioscience 2012
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation contains forward-looking statements within the meaning of the federal securities laws. You can identify these statements by our use of such words as “will,” “guidance,” “objectives,” “optimistic,” “future,” “expects,” “plans,” “estimates,” “continue,” “drive,”
Slide 3: Use Of Non-GAAP Information
Use Of Non-GAAP Information In this presentation, we have included non-GAAP financial information including adjusted operating income from continuing operations, adjusted income from continuing operations and adjusted earnings per diluted share from continuing operations. We believe that this non-GA
Slide 4: Investment Highlights
Investment Highlights • 2011 revenue of $109m and 35c non-GAAP EPS in Core Life Science Research Tools (LSRT) Business: • Profitable, mature steady growth business. • $115m-$120m revenue and 39-42c EPS guidance for 2012 • 17% 14-year average revenue growth • 12% 14-year average non-GAAP adjusted EPS
Slide 5: Core LSRT Business – Strong, Consistent Growth
Core LSRT Business – Strong, Consistent Growth Revenue From Continuing Operations 14 year CAGR *Est. 17% IPO MBO * The 2012 revenue estimate is the midpoint of our guidance of $115 - $120 million as of August 2, 2012 was calculated using exchange rates (USD 1.55/GBP and USD 1.25/Euro) approximating
Slide 6: Core LSRT Business - Strong EPS Growth
Core LSRT Business - Strong EPS Growth Non-GAAP Adjusted Diluted EPS From 14 year Continuing Operations CAGR 12% *Est. GNSL Acquired (Divested 2007) SOX IPO MBO Note: See reconciliation of US GAAP diluted earnings per share to non-GAAP adjusted diluted earnings per share in Appendix A and Appendix B
Slide 7: Core LSRT Business Strategy
Core LSRT Business Strategy Our strategy is to have a broad range of relatively inexpensive products that have strong positions in niche markets in life science research: This gives us high operating margins and low volatility We grow through a combination of organic growth (driven by adding sales p
Slide 8: Core Life Science Business Has Two Divisions
Core Life Science Business Has Two Divisions Physiology Division Molecular Biology Division Business Global market leader Major player Position: Products: Syringe pumps, isolated organ Plastic lab consumables, systems, electroporators, Electrophoresis products, behavioral research products Spectroph
Slide 9: Harvard Apparatus Physiology Products
Harvard Apparatus Physiology Products Syringe Pumps Animal Ventilators Cell & Tissue Incubators market leader market leader market leader Neuroscience Research Electroporation Organ Systems Systems strong #2 with market leader new technology Market sizes and shares are management estimates and have
Slide 10: Molecular Biology Products
Molecular Biology Products Denville Biochrom Hoefer Pipette Tips Spectrophotometers Electrophoresis Market sizes and shares are management estimates and have not been independently verified Copyright © Harvard Bioscience 2012 10 Tools to Advance Life Science Research and Regenerative Medicine
Slide 11: Acquisitions
Acquisitions • Acquisitions are a core part of our growth strategy: • We focus on “tuck-under” acquisitions of product lines that are complementary to our current ones • Our “sweet spot” is $3.0-$8.0 million in revenue • Typically below the radar of the big companies • Typically immediately accretiv
Slide 12: Operational Improvement
Operational Improvement • Recent improvements: • Panlab and Coulbourn were restructured in Q1 2012 • Hoefer’s San Francisco, CA facility was relocated in Q4 2011 Copyright © Harvard Bioscience 2012 12 Tools to Advance Life Science Research and Regenerative Medicine
Slide 13: Base Business EPS Growth Model – 3-5 Year Plan
Base Business EPS Growth Model – 3-5 Year Plan Organic Growth 3-7% + Tuck under Acquisitions 10-15% + Operational Improvements 0-5% = Total Expected Average EPS Growth 15-20% Copyright © Harvard Bioscience 2012 13 Tools to Advance Life Science Research and Regenerative Medicine
Slide 14: Regenerative Technology for Saving Lives
Regenerative Technology for Saving Lives
Slide 15: Clinical Success with Regenerated Tracheas
Clinical Success with Regenerated Tracheas Ms. Castillo is Mr. Beyene is Mr. Lyles Ms. Tuulik is Mr. Zozula is Hannah alive and well at alive and well died of alive and well alive and well Warren’s 4 years* at 12 pneumonia at at 1 month at 1 month surgery has months** 3.5 months.. been approved by t
Slide 16: The Patient was “condemned to die”- Dr. Macchiarini
The Patient was “condemned to die”- Dr. Macchiarini The patient and Prof. Macchiarini before CAT scan used to make the The scaffold prior to seeding the surgery scaffold. The 6cm tumor is in with bone marrow stem cells green Seeding the cells in the The seeded graft after 2 days of Mr. Beyene InBrea
Slide 17: The InBreath Bioreactor System
The InBreath Bioreactor System Inbreath and vented culture lid Inbreath and sealed sterile transport lid Inbreath inside sterile transport box Sterile transport box Non-sterile thermally insulated outer transport box. Copyright © Harvard Bioscience 2012 17 Tools to Advance Life Science Research and
Slide 18: Regenerative Medicine Strategy
Regenerative Medicine Strategy Save lives Target life threatening conditions like tracheal and esophageal cancer, and transplants for heart, lung, liver and kidney. Not low medical value skin, bone or muscle. Easier to get ethics committee (IRB) and regulatory (Humanitarian Use Device) approval for
Slide 19: Tracheal Cancer – Possible Pricing Levels
Tracheal Cancer – Possible Pricing Levels Approaches to pricing organ regeneration products: 1. avoided cost of donor organ procurement $40-90k 2. price of cancer therapeutics* Yervoy for melanoma $120k per patient Zelboraf for melanoma $56k per treatment Adcetris for lymphoma $120k per patient Henc
Slide 20: Pre-clinical Success with Regenerated Lungs
Pre-clinical Success with Regenerated Lungs Natural lung Regenerated lung The lungs were regenerated in a Harvard Apparatus LB2 lung bioreactor. The work was done at Massachusetts General Hospital in collaboration with Dr. Harald Ott*. The regenerated transplanted lungs showed near normal lung funct
Slide 21: Product Stage by Clinical Indication
Product Stage by Clinical Indication Development Pre-Clinical First-in-man Clinical Trial Tracheal Cancer Lung Transplant Esophageal Cancer Heart Transplant Liver Transplant Kidney Transplant 21 Copyright © Harvard Bioscience 2012 Tools to Advance Life Science Research and Regenerative Medicine
Slide 22: Revenue Opportunity
Revenue Opportunity Clinical Patients Market Indication: per year: Potential: Trachea (cancer/trauma) 3,000 $150m Esophagus (cancer) 40,000 $2,000m Heart and lung (transplant) 12,000* $600m *The 12,000 procedures does not account for patients currently on the waiting list due to a lack of donor orga
Slide 23: Stem Cell Therapy Injector
Stem Cell Therapy Injector Photo courtesy Brigham and Womens’ Hospital, Boston Harvard Apparatus research Prototype of the clinical version which we expect to syringe pump being used to submit to the regulatory agencies in 2012. The market inject stem cells into a heart for high end clinical syringe
Slide 24: Commitment To Stockholder Value
Commitment To Stockholder Value • Management holds approximately 14% of shares + 16% in options • We believe tuck-under growth strategy can be financed with cash, cash flow and credit line, therefore no dilution • Modest debt leverage helps drive EPS without undue financial risk • $10m stock repurch
Slide 25: Investment Highlights
Investment Highlights • 2011 revenue of $109m and 35c non-GAAP EPS in Core Life Science Research Tools (LSRT) Business: • Profitable, mature steady growth business. • $115m-$120m revenue and 39-42c EPS guidance for 2012 • 17% 14-year average revenue growth • 12% 14-year average non-GAAP adjusted EPS
Slide 26: Additional Information
Tools to Advance Life Science Research and Regenerative Medicine Additional Information Copyright © Harvard Bioscience 2012 NASDAQ HBIO
Slide 27: Appendix A
Appendix A For the years ended December 31, 1997 1998 1999 2000 (IPO) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Revenues $ 11,464 $ 12,154 $ 26,178 $ 30,575 $ 38,088 $ 47,009 $ 52,024 $ 64,745 $ 67,431 $ 76,181 $ 83,407 $ 88,049 $ 85,772 $ 108,179 $ 108,864 Revenue fourteen -year compou
Slide 28: Appendix B
Appendix B For the years ended For the quarters ended March 31, June 30, Sept 30, Dec 31, March 31, June 30, Sept 30, Dec 31, March 31, June 30, 2008 2009 2010 2010 2010 2010 2011 2011 2011 2011 2012 2012 Revenues $ 88,049 $ 85,772 $ 26,300 $ 25,905 $ 26,453 $ 29,521 $ 26,312 $ 27,143 $ 26,381 $ 29,
Slide 29: Appendix C
Appendix C Reconciliation of Guidance for Non-GAAP Adjusted Diluted Earnings per Common Share From Continuing Operations to US GAAP Diluted Earnings per Common Share (unaudited) Three Months Ending Year Ending September 30, 2012 December 31, 2012 Low High Low High Estimate Estimate Estimate Estimate
Slide 30: Appendix D
Appendix D Reconciliation of Changes In Total Revenue Compared to the Same Period of the Prior Year (Continuing Operations) (unaudited) For For Six the the Three Months Months Three Months Ended Year Three Months Ended Year Ended Ended March June Sept. Dec. Dec. March June Sept. Dec. March June 31,