Qiagen N.v. · NYSE:QGEN
Qiagen — Investor Day (November 2016)
32 slides from Qiagen's investor day presentation, Nov 15, 2016
Slide 1: Setting a new trajectory for growth and greater value creation
Setting a new trajectory for growth and greater value creation Peer M. Schatz Chief Executive Officer November 15, 2016 Sample to Insight 2016 Analyst & Investor Day 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 2016 Analyst & Investor Day 3
Slide 4: World leader in molecular testing solutions that provide valuable insights
Situation QIAGEN at a glance 2015 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% ~20% ~9% ~49% Instruments Au
Slide 5: Customers want meaningful molecular insights
Situation Customers want meaningful molecular insights Faster Better More efficiently Sample Technologies Assay Technologies Bioinformatics Automation systems VALUABLE BIOLOGICAL MOLECULAR SAMPLE TO INSIGHT SOLUTIONS SAMPLE INSIGHTS Moving from tools and components to solutions that provide valuable
Slide 6: Transformation has begun to create value – but took longer than expected
Situation Create a molecular franchise $50 $45 $40 $35 $19.85 $30 $17.11 $25 $20 $15 $10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 + Transformation has begun to create value – but took longer than expected Sample to Insight 2016 Analyst & Investor Day 6
Slide 7: Transformation has begun to create value – but took longer than expected
Situation Create a molecular Significant franchise reorganization $50 $45 $40 $35 $19.85 $30 $17.11 $14.16 $25 $20 $15 $10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 + Transformation has begun to create value – but took longer than expected Sample to Insight 2016 Analyst & Investor
Slide 8: Transformation has begun to create value – but took longer than expected
Situation Create a molecular Significant Portfolio franchise reorganization transformation $50 $45 $40 $35 $23.37 $19.85 $30 $17.11 $14.16 $25 $20 $15 $10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 + Transformation has begun to create value – but took longer than expected Sample to
Slide 9: Transformation has begun to create value – but took longer than expected
Situation Create a molecular Significant Portfolio Commercial franchise reorganization transformation acceleration $50 $45 $40 $27.51 $35 $23.37 $19.85 $30 $17.11 $14.16 $25 $20 $15 $10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 + Transformation has begun to create value – but took
Slide 10: Transformation has begun to create value – but took longer than expected
Situation Create a molecular Significant Portfolio Commercial Sustain growth franchise reorganization transformation acceleration and deliver value $50 $45 $40 $27.51 $35 $23.37 $19.85 $30 $17.11 $14.16 $25 $20 $15 $10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 + Transformation has
Slide 11: U.S. HPV sales headwinds obscured QIAGEN’s fundamental progress
Situation QIAGEN sales evolution Create a molecular Significant Portfolio Commercial Sustain growth franchise reorganization transformation acceleration and deliver value $1.30 bn $1.33 bn $1.28 bn $1.25 bn $1.17 bn ~6% ~3% $1.09 bn ~10% ~13% ~94% ~97% $1.01 bn ~15% ~90% ~17% ~87% ~20% ~85% ~80% ~83
Slide 12: Transformation was the right decision to create a stronger QIAGEN
Situation Selected QIAGEN M&A transactions Selected acquisitions since 2008 EV(1) Date Target ($ m) Strategic value NGS and bioinformatics March 2016 Exiqon 101 RNA analysis technologies Intelligent Bio-Systems Dec 2015 MO BIO 67 Microbial sample technologies CLC Bio Ingenuity Jan 2015 Enzymat
Slide 13: Technologies
Opportunity Customers Life Sciences Molecular Diagnostics Manuel O. Méndez Academia Pharma Applied Testing Clinical Healthcare Brad Thierry Crutchfield Bernard Scientific Better and Secure Better Examples: breakthroughs safer drugs and protect healthcare Blood #1 Technologies Sample Liquid biopsy #1
Slide 14: AMP 2016: Early movers on new trends in Molecular Diagnostics
Opportunity AMP 2016: Early movers on new trends in Molecular Diagnostics Sample to Insight 2016 Analyst & Investor Day 14
Slide 15: Reviewing our progress since 2013
Opportunity Analyst & Investor Day: November 2013 Sales Improving trends while addressing challenges targets Reallocating resources to best opportunities Growth Building momentum [New pic drivers QIAsymphony to come] Personalized Healthcare (PHC) QuantiFERON-TB Bioinformatics Next-ge
Slide 16: Strategy: Setting a new trajectory for growth and greater value creation
Strategy Maximize sales growth Ongoing expansion of Sample to Insight portfolio Deliver operating leverage Sustain strong sales growth while improving leverage Optimize balance sheet Maximize value of cash flows and increase returns Develop our organization Commitment of Board and EC to creating val
Slide 17: Addressing ~$8-9 billion market opportunity with our Sample to Insight portfolio
Strategy Academia Pharma Applied Testing Molecular Diagnostics Scientific breakthroughs Better and safer drugs Secure and protect Better healthcare QIAGEN addressable ~$3 billion ~$1 billion ~$0.5 billion ~$3-4 billion market Annual ~+3% overall ~-5% basic research ~+8-12% +7-10% market growth >+5%
Slide 18: Key highlight areas: QIAGEN’s Sample to Insight portfolio
Strategy Key highlight areas: QIAGEN’s Sample to Insight portfolio Life Molecular Sciences Diagnostics QuantiFERON Universal NGS solutions and GeneReader NGS System Powered by QIAGEN Bioinformatics Personalized Healthcare QIAsymphony Differentiated Technologies Applications including:
Slide 19: QuantiFERON: Setting new standards in the global fight against TB
Strategy QuantiFERON Opportunity 2016 developments QuantiFERON: “Pre-molecular” technology 2016 goal: >$140 million of QuantiFERON-TB sales Lead $1 billion latent TB test market conversion Ongoing conversion from tuberculin skin test (TST) Attractive menu expansion options Support from n
Slide 20: GeneReader: Driving adoption of NGS technology in clinical applications
Strategy Next-generation sequencing Opportunity 2016 developments Increasing demand for universal NGS solutions 2016 target: >$100 m of universal NGS solution sales Shape emergence of oncology benchtop sequencing GeneReader NGS System: >$200 m market with dynamic potential 2016 target: ~
Slide 21: Personalized Healthcare: Expanding our leadership with NGS solutions
Strategy Personalized Healthcare Opportunity 2016 developments Precision medicine changing cancer treatment Milestone: >16 master collaboration agreements in 2016 Scientific advances: New tests and technologies Two new collaborations Daiichi Sankyo – new extensive collaboration Confident
Slide 22: QIAsymphony: Highly versatile automation solution providing solid growth
Strategy QIAsymphony Opportunity 2016 developments Medium-throughput testing: >$750 m market On track for >1,750 cumulative placements in 2016 Customer demand for robust automation systems Front-end use with GeneReader NGS System Modular components for different applications Workflow aut
Slide 23: Differentiated Technologies: Turning innovations into attractive workflows
Strategy Differentiated Technologies Opportunity 2016 developments Improving Life Sciences funding trends Developing Sample to Insight workflows: Demands for workflow solutions – not technologies Liquid biopsy Digital NGS Microbiomes Trends Epigenetics Cycle of scientific breakthroug
Slide 24: Bioinformatics: Winning as standalone as well as integrated solutions
Strategy Bioinformatics 100% hardware Software + Integration 100% software ATGCA TACGT Hardware drives technology Appreciation for hardware Software drives technology adoption, with software in a and software roles to create adoption with focus on secondary role fully integrated solutions universal
Slide 25: QIAGEN sales trends (CER) Portfolio rejuvenation
Strategy QIAGEN sales trends (CER) Portfolio rejuvenation 9% (3-year CER sales CAGR of 2013 portfolio, excluding M&A) 2013 2016E 7% 6% 5% 5% 5% 24% 4% 4% ~40% 3% 3% 4% 3% 2% 2% ~60% 2% 76% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 <10% CER growth 2013 2013 2013 2013 2014 2014 2014 2014 2015 2015
Slide 26: Initiatives under way to sustain sales growth momentum while creating leverage
Key efficiency initiatives 1 Sales channel optimization Simplify some organizational structures 2 Site consolidation Focus on 3 growth opportunities Business Service Centers 4 Further enhance Portfolio management performance culture Initiatives under way to sustain sales growth momentum while creati
Slide 27: Disciplined capital allocation
Strategy 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 Future repurchase
Slide 28: Supervisory Board overview
Strategy Supervisory Board overview Board tenure (In years) Current Supervisory Board members Prof. Dr. Detlev Riesner Manfred Karobath, M.D. Erik Hornaess Joined 2000 Dr. Manfred Karobath Dr. Metin Colpan Stéphane Bancel Metin Colpan, Ph.D. Dr. Werner Brandt Joined 2013 Joined 2004 Heino von Prondz
Slide 29: Executive Committee
Strategy CEO Peer Schatz New members since 2014 Molecular Life Bio- Executive Committee Diagnostics Sciences informatics Thierry Brad Laura Bernard Crutchfield Furmanski Commercial Operations Operations Douglas Manuel O. Liu Méndez HR / Corp. CFO Strategy Roland Thomas Sackers Schweins Development B
Slide 30: Committed employees worldwide helping customers to gain valuable insights
Strategy Committed employees worldwide helping customers to gain valuable insights Sample to Insight 2016 Analyst & Investor Day 30
Slide 31: Maximize sales growth
Payoff Strong governance and top talent Maximize sales growth Multiple Deliver operating leverage Value drivers creation Optimize balance sheet Adjusted EPS growth and capital returns Opportunity for near-term value creation on delivery of 2017-2020 goals Sample to Insight 2016 Analyst & Investor Da
Slide 32: Reaccelerating performance after transformation
Summary Reaccelerating performance after transformation Sustainable sales growth and leverage trajectory Emerging as a stronger, focused, differentiated leader Committed to higher returns and greater value creation Sample to Insight 2016 Analyst & Investor Day 32