Bio-techne Corp · NASDAQ:TECH
Bio-techne — Investor Day (September 2018)
123 slides from Bio-techne's investor day presentation, Sep 7, 2018
Slide 1: Investor Day Corporate Presentation
Click to edit Master title style Investor Day Corporate Presentation September 7, 2018 1
Slide 2: Safe Harbor
Safe Harbor Cautionary Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Except for historical information contained herein, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of
Slide 3: Turning Strategy into Accelerated Growth
Turning Strategy into Accelerated Growth 3
Slide 4: Agenda
Agenda 1. Introduction & Business Overview: Chuck Kummeth, President and CEO 2. Protein Sciences Segment: Dave Eansor, President 3. Diagnostics and Genomics Segment: Kim Kelderman, President Break 4. Exosome Diagnostics: Johan Skog, Vice President 5. Digital Solutions: Kevin Smyth, Vice President 6.
Slide 5: Introduction & Business Overview
Click to edit Master title style Introduction & Business Overview Chuck Kummeth President and CEO 5
Slide 6: Corporate Leadership Team
Corporate Leadership Team Chuck Kummeth Jim Hippel Brenda Furlow Struan Robertson Kevin Smyth CEO CFO SVP VP VP General Counsel Human Resources Digital Solutions Dave Eansor Bob Gavin Kim Kelderman Kevin Gould Thomas McLain Peter Breloer Gary Stapleton President SVP President SVP General Manager VP
Slide 7: Business Overview: At a Glance
Business Overview BUSINESS OVERVIEW CORPORATE Legacy Revenue At a Glance: President and CEO: Chuck Kummeth Headquarters: Minneapolis, MN 25% Number of Employees: ~2,100 World Wide Presence: 35 Locations FY2018 Revenues: $643 million NASDAQ: TECH 10% 65% Market Cap: ~$7B Consumables Instruments Diagn
Slide 8: Revenue by Customer Type
Revenue by Customer Type BUSINESS OVERVIEW CORPORATE 23% 25% Academia Pharma/Biotech $643MM Distributors 15% OEM 37% 8
Slide 9: Revenue by Geography
Revenue by Geography BUSINESS OVERVIEW CORPORATE 15% Americas $643MM 57% EMEA 28% Asia 9
Slide 10: Organic Growth
Organic Growth 9% 6% 6% 4% 3% 0% FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 10
Slide 11: Expansion into Clinical Applications
Expansion into Clinical Applications Regulated Assays Foundational Business (Hematology Controls and Calibrators) & Controls Business Deep Menu of Legacy Biotechnology Business (Proteins, Abs & Assays) High-Quality RUO Reagents GMP Grade Entry into ex-vivo clinical applications Products New Molecule
Slide 12: Bio-Techne Global Operating Model
Bio-Techne Global Operating Model CEO/CLT Global Business Unit/Division Regional Organization Business/Functional Leadership Communication Area Leadership Business/Functional Ownership Shared & PL Area Ownership Area Ownership Portfolio: Technology Brand/ Ways to Local Regional Life Cycle Platform H
Slide 13: Addressable Markets
Addressable Markets Established Markets Life Science Research Research Tumor Biology Diagnostics Immunoassay Reagents >$10B Biologics & cell Clinical Controls Addressable Market therapy 4-10% CAGR Manufacturing ~15% Western Blot/ BioProcess Single Cell Stem Cells Liquid Biopsy Media Biology Emerging
Slide 14: Top Strategies
Top Strategies Core Product Geographic Expansion Innovation Pl Gap Filling M&A and Culture Creation & Market Expansion Talent 14
Slide 15: Strategic Plan: Geographic Expansion
Elements of the Strategic Plan, Progress and Future Goals Achievements Future Geographic Expansion • China • India market • EMEA • India sales reps • APAC • Latin America, expansion • Subsidiary Model with Dx Consolidation • Korea emphasis of biosimilars 15
Slide 16: Strategic Plan: Core Product Innovation
Elements of the Strategic Plan, Progress and Future Goals Achievements Future Core Product Innovation Proteins • Strong growth • GMP reagents for cell and gene • Animal free & GMP menu therapy Antibodies • Alternative technologies for Abs • Web enhancements generation • SEO for better customer exper
Slide 17: Strategic Plan: Gap Filling M&A and Market Expansion
Elements of the Strategic Plan, Progress and Future Goals Gap Filling M&A and Achievements Future Market Expansion • 14 M&A activities to fill product • Tuck-ins to expand core in China, and technology gaps Europe and India • ACD, Exosomedx, Quad • New to the world Protein Technologies to enter Anal
Slide 18: Strategic Plan: Culture Creation & Talent
Elements of the Strategic Plan, Progress and Future Goals Achievements Future Culture Creation & Talent • Created EPIC values culture • Continue build the EPIC culture throughout organization as we continue to grow • Strong leadership team with • Focusing on collaboration for industry experience mor
Slide 19: Disciplined M&A and Investment Strategy
Disciplined M&A and Investment Strategy • Healthy hopper of targets • Sound prioritization strategy • Targets that fill gaps • Targets with ROIC > WACC 19
Slide 20: Our New Segment Structure
Our New Segment Structure Protein Sciences Protein SciencesSegment Segent Reagent Solutions Develop and manufactures biological reagents used in all aspects of life science research Analytical Solutions Manual and automated protein analysis solutions that improve the efficiency of process work strea
Slide 21: Continual Innovation: Bio-Techne Technology Council
Continual Innovation: Bio-Techne Technology Council • Gather the best technical minds from all Genomics divisions to share great ideas RNA-ISH Cell Protein • Comprised of technical leaders in the core Culture Expression Products competencies of Bio-Techne • Goals Protein Antibody • Share ideas acros
Slide 22: Business Segment Portfolio
Business Segment Portfolio REAGENT SOLUTIONS ANALYTICAL SOLUTIONS • Develops and manufactures biological • Manual and automated protein analysis reagents used in all aspects of life solutions that improve the efficiency of science research process work streams & quantitate secreted • Research Tools
Slide 23: Synergies between Divisions
Synergies between Divisions Simple Western™ Assay Development Simple Plex™ Antigens and Antibodies Reagents, Custom Development, Services Single Cell Controls and Calibrators 23
Slide 24: Our Mission
Our Mission E Pl Cc Tools jor Pl CG Science Empowerment Passion Innovation Collaboration bietechne
Slide 25: Global Footprint
Global Footprint North America, Europe, and Asia >300,000 ~2,100 >40 >500,000 6 Products Employees Years Citations Platforms ~1800 Our brands Nearly 2,100 Our companies Generated using 6 instrument bring you employees have been our products platforms that >300,000 globally manufacturing leverage bio
Slide 26: Protein Sciences Segment
Click to edit Master title style Protein Sciences Segment Dave Eansor President, Protein Sciences 26
Slide 27: Our Business Today: Protein Science Segment
Our Business Today: Protein Science Segment Business Overview Key Growth Drivers • Largest, most profitable Segment of • Novel Automated Western Blot Bio-Techne Instrumentation & Feature Enhancements • FY2018 Revenue: $483M • Multiplex Immunoassay platforms • FY2018 Op. Income: 44% • Revenue Sharing
Slide 28: Why Protein Science?
Why Protein Science? DNA provides the blueprint… But life is built from proteins! 28
Slide 29: Biotech Strategy Update
Biotech Strategy Update A multi-tiered effort to innovate & differentiate while protecting the “core” Expand the Markets Take Share Through Product Differentiation & Value Continue “Ticket to the Ball” Addition Investments Protect the Core 29
Slide 30: Bio-Techne Progress Update: Proteins
Bio-Techne Progress Update: Proteins The most widely used proteins in the world Proteins • 3500+ Recombinant Proteins 2018 Publications • Widest Selection of Bioactive proteins 220 Manuscripts 349 Protein References • 95% Developed and Tested In-House R&D Systems 60 Companies • 45 GMP Proteins for C
Slide 31: High Value/High Growth Applications for Proteins
High Value/High Growth Applications for Proteins Specialty Media Bioprocessing Supplements (Growth Factors for large scale Production) Proteins Cell Therapy Cancer Immunotherapy Research (Immune Checkpoint Proteins) (GMP Proteins) 31
Slide 32: Antibodies
Antibodies Largest Catalog Data-rich Website • More selection, more results • The right choice, the first time • Targets • Data • Species • Images • Applications • Citations • Reviews Reproducible and Validated Capabilities and Innovation • Trusted results, every time • Research and Development • In
Slide 33: The Versatility of High Quality Antibodies
The Versatility of High Quality Antibodies Immunohistochemistry Western Blot and Simple Western Flow Cytometry Blocking/Neutralization Immunocytochemistry Assays ELISA Assays Luminex® Assays EllaTM Arrays 33
Slide 34: Small Molecule Research Area Emphasis
Small Molecule Research Area Emphasis Current Areas of Growth Functions Inhibitors Cancer Research Activators Stem Cells Agonists Antagonists Blockers Modulators Ligands Epigenetics Neurodegeneration 34
Slide 35: Expanded Offering for Cell & Gene Therapy
Expanded Offering for Cell & Gene Therapy Isolate and Culture Verify Differentiate Investigate • Premium quality GMP proteins • Optimized differentiation kits and media • Tocris GMP Small Molecules • Stem cell-relevant growth factors • MagCloudz™ Cell Separation • Small molecules from Tocris Bioscie
Slide 36: GMP Proteins: Widest selection available
GMP Proteins : Widest selection available R&D Systems GMP Proteins for cell therapy manufacturing • Activin A • GDF-8 • IL-4 • NRG1-β1 • VEGF • BDNF • GDF-11 • IL-6 • NT-3 • Wnt-3a • BMP-2 • GDNF • IL-7 • NT-4 • BMP-4 • GM-CSF • IL-11 • PDGF-BB • BMP-7 • HGF • IL-12 • Periostin • EGF • IFN-γ • IL-15
Slide 37: Expanding Presence in GMP Applications
Expanding Presence in GMP Applications (“sticky” revenue) GMP Proteins for Immuno-Oncology • For cell therapy culture: CAR T, Stem Cell Therapy, Regenerative Medicine • For ex vivo cell culture (not used directly in humans) • Protein standards for Dx assays • Growth factors for large scale cell cult
Slide 38: Immune Cell Therapy Opportunities
Immune Cell Therapy Opportunities Abs for T-Cell Activation using QUAD Technologies Ella for CRS Detection/monitoring Profiling CAR activity via ACD technology Assay/Ab platforms for QC GMP Proteins 38
Slide 39: QuickGel: plug and play T-cell isolation and activation
QuickGelTM: “plug and play” platform for T-cell isolation and activation 39
Slide 40: QuickGel Microparticles
QuickGel™ Microparticles Only releasable, non-magnetic cell selection technology Revolutionizing the clinical workflow Bringing automation and GMP-compliance to our magnetic bead-free cell separation Directly-conjugated antibodies Current RUO cell selection solution 40
Slide 41: Serving All Aspects of Life Science
Serving All Aspects of Life Science Basic Applied Pharma Research Research Development Clinical Pharma Diagnostics Research Production Instruments Reagents Consumables Life Science Tools 41
Slide 42: Scientists Ask Different Analytical Questions
Scientists Ask Different Analytical Questions Basic Applied Clinical Diagnostics Research Research Research Measure small amounts of protein in complex mixtures Pharma Pharma Development Production Measure and characterize purified proteins 42
Slide 43: Instruments for Biologics Analysis Drive Pharma Growth
Instruments for Biologics Analysis Drive Pharma Growth Biologics Therapeutic Pipeline 338 MauriceTM 250 • Biologics are Purified Proteins as Drugs • ~700 companies worldwide researching 93 and commercializing biologics 69 49 46 30 15 10 7 • Pipeline of Biologics in Phase I to Application Submission
Slide 44: Pure Proteins, Deeply Characterized
Pure Proteins, Deeply Characterized Many analytical techniques are required Identity SDS-PAGE, IEX, IEF, Purity CZE, MS SDS-PAGE, IEX, SEC, iCE iCE RP, IEF, CZE, HIC Structure MFI CD, FTIR, NMR, DSC, ITC, SEC, Impurities MS, X-Ray Cryst. ELISA, PCR, ISPR, LO, DLS, iCE SEC, AUC, MS, SDS-PAGE Stabilit
Slide 45: iCE – Is My Drug Pure?
iCE – Is My Drug Pure? Charge Signature iCE3 With cIEF Maurice Purity and Identity With CE-SDS Gold Standard for Charge Heterogeneity (cIEF) Beachhead in CE-SDS Installed in development and QC 45
Slide 46: MFI – Can I Characterize My Contaminant(s)?
MFI – Can I Characterize My Contaminant(s)? Glass Oil Rubber Air bubbles Aggregate MFI Particle Images Defined the field for monitoring protein purity 46
Slide 47: What's in your sample?
What’s in your sample? Western blot ELISA Measurement of small amounts Usually involves some Bio-Techne has revolutionized the of protein in complex mixtures sort of immunoassay two most common techniques 47
Slide 48: Immunoassays: Different Users, Different Needs
Immunoassays: Different Users, Different Needs Fully Validated Quantikine® Simple Plex ™ DuoSet® Arrays Luminex® Simple Western™ FluorChem AlphaImager Single-Cell Homemade Assays Manual Fully Automated 48
Slide 49: Western Blot is Ubiquitous
Western Blot is Ubiquitous 50% of life science researchers regularly do westerns 850,000 researchers world wide 49
Slide 50: Start with a Lot of Gear…
Start with a Lot of Gear… Separation Blotting Gels Imaging Antibody ImmunoAssay 50
Slide 51: Spend Up to Two Days…
Spend Up to Two Days… Load gel Run gel Prep gel Build Sandwich Membrane Transfer Primary Probe Wash Secondary Probe Wash Again Expose Develop Detect 51
Slide 52: And Get Inconsistent Data!
And Get Inconsistent Data! ûManual ûTime consuming Day 1 ûInconsistent ûNon-reproducible ûSemi-quantitative at best Day 2 52
Slide 53: Simple Western is the Future…
Simple Western is the Future… Prepare samples Click start Results automatically 53
Slide 54: …with Data you can Rely on
…with Data you can Rely on ü Fully automated ü Fast ü Consistent CV=4.4% ü Reproducible CV=9.1% ü Fully quantitative 54
Slide 55: The Only Fully Automated Western Blotting Solutions
The Only Fully Automated Western Blotting Solutions Gel Free, Blot-free, Hands-Free WesTM JessTM 25 samples Peggy SueTM 25 samples 96 size/charge +Fluorescence +Protein Normalization +Blot Imaging Sally SueTM NanoPro 1000TM 96 size 55 96 charge
Slide 56: Crossing the Chasm
Crossing the Chasm Over 1,300 instruments in the field Late Innovators Early Adopters Early Majority Majority Laggards Simple Western 56
Slide 57: ELISA – Most Common Immunoassay Measurement
ELISA – Most Common Immunoassay Measurement ~ 2,000,000 ELISAs are performed annually ~1,000,000 Are ELISA kits Typical lab: 50-100 Plates per year 6-10 Different targets 57
Slide 58: ELISA: Sensitive & Accurate, Tedious & Slow
ELISA Traditional ELISA Sensitive & Accurate Tedious & Slow 1. Coat Plate with Capture Ab 2. Wash Plate 3. Add Antigen (sample) 4. Wash Plate 5. Add 2o Ab and incubate 6. Wash Plate 7. Add Detection Reagent and incubate 8. Read in plate reader and analyze 58
Slide 59: Simple Plex Removes the Tedium
Simple Plex™ Removes the Tedium Traditional ELISA Simple Plex ELISA • Up to 8 separate steps • Only 2 separate steps • Each Step adds variability • Variability is low • May take up to 6 hours • Only takes up to 1.25 hours • Requires larger sample volumes • Requires low sample volume 59
Slide 60: Simple Plex – A New Way to ELISA
Simple Plex – A New Way to ELISA Prepare samples Click start Results automatically 60
Slide 61: Produces More and Better Data
Produces More and Better Data • Up to 4 targets per sample • Wider Dynamic Range • Lower detection limits 61
Slide 62: Ella Adoption Growing
Ella Adoption Growing Now Shipping More than 10,000 Cartridges/Year Ella Late Innovators Early Adopters Early Majority Majority Laggards 62
Slide 63: Proven Track Record of Innovation in Protein Analysis
Proven Track Record of Innovation in Protein Analysis NP1000 NP100 iCE3 Simon Sally Peggy Wes Peggy Sue Maurice Jess 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 FCE FCM MFI5200 Bot1 FCR Sally Sue Ella Milo 63
Slide 64: Continual Innovation
Continual Innovation Instruments Consumables Assays 2 new SW separation modules 200+ Simple Plex Assays Complete 3 new SW 2,000+ Certified detection Simple Western modules Antibodies Jess 400+ Certified Single Cell Antibodies 72x1 32x4 16x4 New! New! Bio-Techne will add new Bio-Techne will add new B
Slide 65: Protein Science Segment Channels to Market
Protein Science Segment Channels to Market EMEA Worldwide US US Rest of World China Direct Salesforce 3rd Party (Fisher) eCommerce Distribution Pharma Government Biotech CRO Academia Resellers 65
Slide 66: Diagnostics & Genomics Segment
Click to edit Master title style Diagnostics & Genomics Segment Kim Kelderman President, Diagnostics & Genomics Segment 66
Slide 67: Diagnostics & Genomics Segment
Diagnostics & Genomics Segment 1. Segment overview 2. Business strategy: 3. Business strategy: Diagnostics Genomics • Product overview • Why ISH? • Serviceable Available markets • Customer Journey, • Business Priorities: RNAscope® expansion • Unlock Bio-Techne® Capabilities in Genomics 67
Slide 68: Locations & Brands in Diagnostics and Genomics Segment
Locations & Brands in Bio-Techne’s Diagnostics and Genomics Segment Minneapolis, MN Rennes, Emeryville, CA France Devens, MA Munich, Germany Newark, CA Waltham, MA Milan, Italy Devens, MA Beijing, China San Marcos, CA Diagnostics Genomics 68
Slide 69: Diagnostics Division Overview
Diagnostics Division Overview Calibration and control products Biological components Instrument companies • General Chemistry • Cardiac Markers • Point of Care • Hematology • Lipids • Diabetes (Blood glucose, HbA1c) • Specific Proteins • Blood Gas/Electrolytes • Cancer Markers • Immunochemistry • TD
Slide 70: Serviceable Addressable Market (SAM)
Serviceable Addressable Market (SAM) Divisional Focus Stds. & Controls IVD market: $1B SAM at 3-5% CAGR Assays and Reagents: $1B SAM at 5-8% CAGR 100% $2B Other, Proficiency Total SAM Others Other Testing APAC Tissue 80% Sysmex Urine Microbiology Drugs Of Abuse (DOA) Testing Thermo Fisher MDx bioMér
Slide 71: Diagnostics Division Strategy
Diagnostics Division Strategy Focus on fundamental capabilities to enjoy sustained growth in the core business. Expand into adjacent markets for accelerated growth. The situation Strategic priorities • Addressable market ~$1B Quality controls/Calibrators Service our core market: market A: Increasing
Slide 72: Diagnostics Division Strategy: The Opportunity
Diagnostics Division Strategy Focus on fundamental capabilities to enjoy sustained growth in the core business. Expand into adjacent markets for accelerated growth. The opportunity Pull vs. Push Critical success factors Respected ü Not a clinical instrument company and not a competitive OEM Mfg. thr
Slide 73: Genomics Division Overview: RNAscope RNA-ISH
Genomics Division Overview: RNAscope - In-Situ Hybridization (RNA-ISH) RNA-ISH provides morphological & molecular information Best of both worlds Today 100% 100% SAM: $1.3B Morphology Molecular Automatable, scalable, plug-play probes 0% 0% 73
Slide 74: Current Strategy: ACD Standalone
Current Strategy: ACD Standalone Drive Genomics revenue by providing a better, faster ISH experience Discovery Future customer journey Mass Spec Start project/ Screen Abs IHC Abs Project complete Protein Need for biomarker Western BI + standard Ø Ongoing Ab use ISH Probe * + cost Ø GMP MFG. NGS DNA/
Slide 75: Genomics: ISH as entry point
Genomics: ISH as entry point Support the customer journey by linking Bio-Techne Capabilities Discovery Future customer journey 1 Start 2 project/ ISH Validate BT IHC Project Need for 3 Probe BT-Abs Abs complete biomarker 4 Growth vectors: Screen Abs 1 Use ISH probe as primary Western BI marker 2 If
Slide 76: Exosome Diagnostics
Click to edit Master title style Exosome Diagnostics Johan Skog, Ph.D. Vice President 76
Slide 77: Liquid Biopsies: CTCs, cfDNA & Exosomes
Liquid Biopsies: CTCs, cfDNA & Exosomes Tumor Formation Vascularization Dissemination ctDNA Exosomes CTCs 77
Slide 78: Exosomes are released as a means of intracellular communication
Exosomes are released as a means of intracellular communication Exosomes are released by all living cells into Exosomes play a role in various disease processes biofluids and have a biological purpose • Stimulate tumor cell growth • Produced by eukaryote and prokaryote cells • Inhibit immune cells •
Slide 79: Liquid Biopsies: Key Properties
Liquid Biopsies: CTCs, cfDNA & Exosomes Key Properties CTCs cfDNA Exosomes Difficult to find Infrequent in early within “noise” of Frequency Abundant stages of disease contaminating DNA Ability to Enrich or Yes Yes No Select Quality of Isolated Poor due to High quality- Good Nucleic Acids enzymes ex
Slide 80: Why this is the best method for early cancer detection
Why we Believe this is the BEST Method for Early Cancer Detection • Tools with better correlation to the biology Measurement Source Material Need: One Reaction Falling Allele Frequencies Dying Cells cfDNA Rising Allele Frequencies Living Cells Exosomal RNA • Sensitivity: Why cfDNA alone is insuffici
Slide 81: High Liquid Biopsy Sensitivity
High Liquid Biopsy Sensitivity: 10X Mutation – 3X Allele Frequency Ann Oncol 2018: 29(3):700-706 Improved clinical sensitivity over ctDNA Up to 10-fold more copies of the mutations (median) 81
Slide 82: ExoDx Lung (T790M) vs. Roche cobas
ExoDx EGFR Mutation Assay yields High Sensitivity and Specificity ~60% of NSCLC patients become resistant to EGFR inhibitor therapy due to the EGFR T790M mutation ExoDx®Lung (T790M) vs. Roche cobas® EGFR Mutation Test v2 (US IVD) Drug resistance T790M mutations in NSCLC patients • exoRNA and cfDNA =
Slide 83: EDDE BrCa enrichment correlates to matched FFPE
EDDE BrCa enrichment correlates to matched FFPE Early Detection (stage I/II) ER+ Breast Cancer: Exosomes can not only detect clear signature differences, but with positive selection of plasma exosomes using a marker present on the cancer cells the exosome signature is clustering with its parent tiss
Slide 84: Clinical Utility of Liquid Biopsies
Clinical Utility of Liquid Biopsies Early detection Markers for recurrence Screening Tumor heterogeneity Prognosis Identification of targets New targets Response to therapy Monitoring Resistance to therapy Molecular assays Targeted Genotyping therapy Personalized Drug testing therapeutics 84
Slide 85: Validated Tests Drive Rapid Commercial Expansion
Technically and Clinically Validated Tests Drive Rapid Commercial Expansion Alzheimer’s Parkinson’s Neurodegenerative Diseases (Pharma driven) Disease Disease Transplant Rejection Kidney Transplant Rejection Oncology BRAF Arv7 EGFRvIII Assay Assay MedOncoLyzer Breast Cancer 170 Gene Panel Signature
Slide 86: Product Development Roadmap
Product Development Roadmap • ExosomeDxTM plan to continue to change the landscape of liquid biopsies through publications and Pharma projects • Sensitive mutation detection • Enables RNA analysis • Enables enriching for disease specific targets • Enables protein analysis of enriched exosomes • Howe
Slide 87: ExosomeDx: The Leader in Companion Diagnostics
ExosomeDx: The Leader in Companion Diagnostics Scorecard Diagnostic IP – Owned by Exosome Dx Established Leader in CDx Glioblastoma multiforme IP granted 15 partners Metastatic Prostate Cancer with IP filed 30 projects Early Stage Breast Cancer IP filed Most extensive intellectual normal BrCa proper
Slide 88: Exosomedx Prostate Intelliscore
Exosomedx Prostate Intelliscore First Molecular test to predict high-grade prostate cancer at initial biopsy Unparalleled Specificity and • Three biomarker gene expression tests to identify aggressiveness of cancer Sensitivity • 92% Sensitivity, 34% Specificity, NPV 92% • Simple urine catch with no
Slide 89: The EPI Test
The EPI Test Intended Use: The EPITM risk score is used to risk stratify likelihood of high grade (GS > 7) prostate cancer on initial biopsy in men 50-years and older, with a PSA 2-10ng/mL. The Workflow: 89
Slide 90: Commercial Summary EPI
Commercial Summary EPI üQ4 2016 World’s first exosomal RNA based diagnostic test limited launch in MA, CT and RI üQ2 2017 EPI is Setting a New Paradigm for Dx Test Commercialization Received CPT code for LDT test üQ2 2017 First of its kind private payer collaboration for coverage with evidence devel
Slide 91: EPI Eligible Patients Coverage
EPI Eligible Patients Coverage Payors 5% 33% 62% Private Public Uninsured 91
Slide 92: Commercial Success Driven by World Class Science and Proprietary Technology
Commercial Success Driven by World Class Science and Proprietary Technology • World class R&D driving Innovative Medical Applications • Highly efficient mutation detection by combined exosome RNA and cfDNA analysis • Exosome RNA enables full transcriptome analysis of disease in biofluids • Exosome e
Slide 93: Digital Solutions
Click to edit Master title style Digital Solutions Kevin Smyth Vice President, Digital Solutions 93
Slide 94: What is Digital Solutions at Bio-Techne?
What is Digital Solutions at Bio-Techne? Marketing Digital Sales Marketing Corp IT Communications Marketing Enablement Operations Support the Customer Journey 94
Slide 95: Our Digital Vision in Action
Our Digital Vision in Action Customer Experience • Channel optimization to support revenue growth • One stop “shopping” focused on customer vs. brand • Brand strategy driving customers to all relevant brands • Simplify the experience, inside & out Innovation • Deliver the right message, to the right
Slide 96: IRIS Data Set Visualization
IRIS Data Set Visualization 3127 total observations (434 known, 2693 novel) 20k 1100 total observations (148 known, 952 novel) Observations 307 total observations (67 known, 240 novel) Observations 10k 135 total (50 known, 85 novel) 2s 4s 6s 8s 10s 12s 14s 16s 18s 20s Statistical outliers 0 -5 0 5 1
Slide 97: Transforming Data into Insights
Transforming Data into Insights 97
Slide 98: Significant effort consolidating our web presence
Significant effort consolidating our web presence 98
Slide 99: Has resulted in a more cohesive experience for our customers
Has resulted in a more cohesive experience for our customers 99
Slide 100: Digital Marketing focus on the complete customer journey
Behind the website, our Digital Marketing team is focusing on the complete customer journey Increase the size of Understand engagement Drive increased Increase revenue from Improve our net Objective our marketable of those aware of our engagement across interest and education promotor score database
Slide 101: This focus results in growth of site traffic
This focus results in growth of site traffic Traffic to Bio-Techne Sites 1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 Apr-17 Apr-18 Jun-17 Jun-18 Dec-16 Dec-17 Jan-17 Jan-18 Mar-17 Mar-18 Nov-16 Nov-17 Sep-16 Feb-17 Sep-17 Feb-18 Oct-16 Oct-17 Aug-16 Aug-17 Jul-16 Jul-17 May-17 May-18 T
Slide 102: Online Order Growth
Online Order Growth $90,000 3,000,000 $80,000 2,500,000 $70,000 $60,000 2,000,000 $50,000 1,500,000 $40,000 $30,000 1,000,000 $20,000 500,000 $10,000 $- - Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 FY17 FY17 FY17 FY17 FY18 FY18 FY18 FY18 Traffic Retail Revenue Traffic to Bio-Techne domains increased 21% YOY supporting
Slide 103: FY19 Strategic Initiative Focus
FY19 Strategic Initiative Focus Improving customer’s results by delivering innovative, quality solutions across their entire workflow • Recent acquisitions & new product Cell Culture offerings continue to fill out the Bio-Techne portfolio with innovative & high quality solutions f Signa ulation o wa
Slide 104: Telling the Bio-Techne Story
Telling the Bio-Techne Story Example Immuno-oncology workflow Tools to Better Cell Culture Cell Protein Measurement Measure key Understand Identification RNA biomarkers Signal Pathways 104
Slide 105: Building Culture
Click to edit Master title style Building Culture Struan Robertson Vice President 105
Slide 106: Our Mission
E Pl C Tools jor P| Cc Science
Slide 107: Epic Values
Epic Values EMPOWERMENT PASSION INNOVATION COLLABORATION 107
Slide 108: FY18 Survey Results
FY18 Survey Results 1. work-life balance, work flexibility, decision making, results oriented work, and freedom to incorporate ideas at work. 2. working together within and across departments, sharing ideas, and depending on others for the completion of work. 3. importance of work, work enjoyment, m
Slide 109: Headcount Growth
Headcount Growth 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 109
Slide 110: 21% of our Employees have less than one year at Bio-Techne
21% of our Employees have less than one year at Bio-Techne 110
Slide 111: Creating One Aligned Organization
Creating One Aligned Organization Standardize Centralize Harmonize • Recruiting Process • HR Administration • Orientation/Onboarding • Performance • Manager Toolkit • EPIC Culture Management • Compensation & Benefits • Learning & Development • Offboarding • Centralized HRIS • Employee Relations Loca
Slide 112: The Two Queues
The Two Queues Talent Customers 112
Slide 113: Turning Strategy into Financial Returns
Click to edit Master title style Turning Strategy into Financial Returns Jim Hippel Chief Financial Officer 113
Slide 114: Key messages
Key messages • Our strategy has already created solid financial returns • Our strong balance sheet and cash flows will allow for continued execution of our M&A capital allocation strategy • Our diversified portfolio and access to capital allow for potential acceleration of financial performance over
Slide 115: Results of our strategy so far…
Results of our strategy so far… +16% 5yr CAGR +7% 5yr CAGR +7% 5yr CAGR +10% 5yr CAGR 1 4% + GR CA % 9% OG + 10 R % 1 7% R + 5% CAG + 12 R + G CA CAGR + 4% CAG % + 17 R 6% OG CAGR + 5% CAG CAGR 0% OG FY13 FY16 FY18 FY13 FY16 FY18 FY13 FY16 FY18 FY13 FY16 FY18 Revenue * Adj. Op. Income * Adj. EPS Op.
Slide 116: How our strategy has driven financial performance by segment
How our strategy has driven financial performance by segment… Revenue (mm) Operating Income (mm) Biotechnology 9% OG • Organic growth in the segments “core reagents” has averaged +15% 6% OG 47.2% ~6%, while ACD’s TTM revenue has grown from ~$25mm at CAGR 53.1% +9% OM the end of FY16 to over $50mm at
Slide 117: The math behind the new segments
The math behind the new segments -+ Protein Sciences Protein Sciencessegment Segent Reagent Solutions Biotechnology Analytical Solutions Protein Platforms Diagnostics and Genomics Segment Diagnostics Diagnostics ~15% + + Genomics Genomics 117
Slide 118: Financial performance under the new segment reporting
Review of our financial performance under the new segment reporting starting in FY19… Protein Sciences Segment Diagnostics & Genomics Segment +11% 2yr CAGR +10% 2yr CAGR +24% 2yr CAGR +8% 2yr CAGR 10% OG 7% OG 7% OG 43.5% 9% OG 43.9% OM 3% OG 43.6% OM 22.0% OM 0% OG 29.1% 20.4% OM OM OM FY16 FY17 FY
Slide 119: Capital deployed over the past couple of years
Capital deployed over the past couple of years ~$800mm capital deployed since FY16 $96mm directly to Shareholders $35mm CAPEX to support organic growth ~ $48mm per year in dividends • Facility expansions • Equipment to support new production • ERP systems & Website development $663mm in acquisitions
Slide 120: Long term capital deployment strategy remains focused on M&A
Long term capital deployment strategy remains focused on M&A mm Key criteria on our acquisition filter Debt Paydown 2018 FY23 $1.5B - $1.8B “Dry Powder” < 3.5x leverage Process, perseverance, and patience needed to be successful in M&A 2018 FY23 120
Slide 121: As we look forward, our financial goals get larger
As we look forward, our financial goals get larger Revenue Adj. Operating Income ~$1.2B ~$0.5B ~40% OM FY13 FY16 FY18 FY23 FY13 FY16 FY18 FY23 Rev CAGR OM% in 5yrs • Analytical Solutions +15-20% • Analytical Solutions ~ 30% • Reagent Solutions +5-7% • Reagent Solutions +50% Protein Sciences Segment
Slide 122: Q&A
Click to edit Master title style Q&A 122
Slide 123: Thank You
T H A N K YO U B i o - Te c h n e C o r p o r a t i o n . 614 McKinley Place . Minneapolis, Minnesota . 55413 123