Qiagen N.V. · NYSE:QGEN
Qiagen — Q2 2015 Earnings Presentation
29 slides from Qiagen's earnings presentation, Jul 30, 2015
Slide 1: Second quarter and first half 2015 results
Second quarter and first half 2015 results July 30, 2015 Sample to Insight
Slide 2: Forward looking statements
Forward looking statements Safe Harbor Statement: Certain 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 Exchange Act of 1934, as amended.
Slide 3: Introduction, Business update, Financial review
John Gilardi Introduction VP Corp Communications and IR Peer Schatz Business update Chief Executive Officer Roland Sackers Financial review Chief Financial Officer Q&A session Sample to Insight Second quarter and first half 2015 results 3
Slide 4: Q2 2015: Overview
Q2 2015: Overview 1 Exceeded Q2 targets Adjusted net sales: $319.5 million +5% CER (-4% actual FX) Steady 25% adjusted operating margin with investments in new strategic phase Adjusted EPS $0.28 CER ($0.26 actual FX) 2 Transforming QIAGEN +8% CER growth from 97% of QIAGEN’s total sales Las
Slide 5: Delivering growth during QIAGEN portfolio transformation
Delivering growth during QIAGEN portfolio transformation Sales overview 2010 – 2014 H1 2015 adjusted net sales (In $ billions, as percentage of sales) (In $ millions, CER and actual rates percentage change) $1.35 bn $1.25 bn $1.09 bn ~30% ~22% ~15% ~+4% CER / ~+8% -5% actual rates $649 m ~-4 p.p. ~6
Slide 6: Q2 2015: Growth driver highlights
Q2 2015: Growth driver highlights QIAsymphony Seegene pact to develop multiplex tests, initial focus on infectious diseases Breakthrough protocol to automate liquid biopsy / cfDNA sample processing Personalized Healthcare 4th FDA approval: EGFR companion diagnostic with IRESSA® in lung cancer
Slide 7: Bioinformatics: Leading portfolio of comprehensive solutions
Bioinformatics: Leading portfolio of comprehensive solutions NEW User interface and application- specific tools Causal analytics, Variant path to phenotype, ACMG scoring, Molecular activity prediction, Expression regulation, Downstream effects, etc. Secondary Workbenches analysis Ingenuity Knowledge
Slide 8: Human ID / Forensics: Launch of new Investigator kits in U.S.
Human ID / Forensics: Launch of new Investigator kits in U.S. Sample Technologies Assay Technologies Global leadership in >$50 m Newest entry into >$100 million market opportunity U.S. market for STR assays BIOLOGICAL VALUABLE SAMPLE MOLECULAR INSIGHTS Investigator STR kits: Key advantages Com
Slide 9: Q2 2015: Financial review
Q2 2015: Financial review In $ millions Second quarter (Unless indicated) 2015 2014 Change -4% Adjusted net sales 319.5 331.2 (+5% CER) Adjusted gross profit margin 71% 72% Adjusted operating income 78.9 81.2 -3% Adjusted operating income margin 25% 25% Adjusted net income 60.9 60.9 0% Adjusted tax
Slide 10: Q2 2015: Adjusted net sales by customer classes
Q2 2015: Adjusted net sales by customer classes Q2 2015 adjusted net sales: $319.5 million MDx portfolio excl. HPV +10% CER +3% CER ~47% of sales ~50% of sales U.S. HPV -43% CER Molecular Diagnostics ~3% of sales +11% CER ~9% of sales Applied Testing +7% CER ~20% of sales Pharma +7% CER ~21% of sale
Slide 11: Q2 2015: Geographic results
Q2 2015: Geographic results Europe / Middle East / Africa +3% CER / 30% of adjusted net sales Molecular Diagnostics and Pharma Germany, Turkey and United Kingdom Academia Russia Americas +4% CER / 49% of adjusted net sales +11% CER excluding U.S. HPV QuantiFERON-TB Asia-Pacific / Japan Applied Testi
Slide 12: H1 2015: Financial review
H1 2015: Financial review In $ millions First half (Unless indicated) 2015 2014 Change -5% Adjusted net sales 618.1 648.6 (+4% CER) Adjusted gross profit margin 72% 72% Adjusted operating income 146.3 156.0 -6% Adjusted operating income margin 24% 24% Adjusted net income 112.4 114.7 -2% Adjusted tax
Slide 13: H1 2015: Balance sheet and cash flow
H1 2015: Balance sheet and cash flow As of June 30 2015 2014 Leverage ratio: Net debt / adjusted EBITDA(1) Group liquidity (In $ millions) 368 655 3.5 3.3 Net debt (In $ millions) 686 535 3.0 Shareholder equity ratio 61% 60% 2.5 2.2 Net debt / adjusted EBITDA ratio(1) 1.6x 1.2x 2.0 1.6 1.5 1.2 1.1 0
Slide 14: Reaffirming full-year 2015 CER adjusted net sales and EPS outlook
Reaffirming full-year 2015 CER adjusted net sales and EPS outlook As of July 29, 2015 2015 full-year adjusted net sales 2015 full-year adjusted EPS (In $ millions) (In $ per share) ~+7-8 p.p. ~+$0.16-0.18 CER ~$1.16-1.18 CER ~+4% CER -40% $1,346 ~-3-4 p.p. $1.00 -60% ~6% 2014 adjusted U.S. HPV Rest
Slide 15: Q3 and full-year 2015: Outlook and assumptions
Q3 and full-year 2015: Outlook and assumptions Q3 2015 outlook Full-year 2015 outlook Adjusted net sales(1) ~+3% CER ~+4% CER ~$0.29-0.30 CER ~$1.16-1.18 CER Adjusted diluted EPS(2) (Prior year: $0.27) (Prior year: $1.00) Amortization of acquired intellectual property (In $ millions) ~30 ~125 Busine
Slide 16: Summary
Summary Exceeded CER sales and EPS targeted in Q2 2015 Growth drivers leading Sample to Insight transformation Reaffirming 2015 CER growth targets – adverse FX trends CER – Constant exchange rates Sample to Insight Second quarter and first half 2015 results 16
Slide 17: Appendix
if i ills, : hi Appendix Sample to Insight
Slide 18: Q2 2015: Income statement summary
Q2 2015: Income statement summary In $ millions (Unless indicated) Q2 2015 Q2 2014 Change Net sales 319.5 330.8 -3% Adjusted net sales 319.5 331.2 -4% Adjusted net sales (CER) 348.9 331.2 5% Gross profit 200.5 215.9 -7% Adjusted gross profit 225.7 236.9 -5% Adjusted gross profit margin 71% 72% Opera
Slide 19: Q2 2015: Reconciliation adjusted results
Q2 2015: Reconciliation adjusted results In $ millions Net Gross Operating Pretax Income Tax Net Diluted (Except EPS) sales profit income income tax rate income EPS Reported results 319.5 200.5 40.0 29.4 -4.3 15% 25.1 0.11 Adjustments Business integration 0.3 4.4 4.4 -1.4 3.0 0.01 and acquisition-re
Slide 20: H1 2015: Income statement summary
H1 2015: Income statement summary In $ millions (Unless indicated) H1 2015 H1 2014 Change Net sales 617.9 647.9 -5% Adjusted net sales 618.1 648.6 -5% Adjusted net sales (CER) 673.7 648.6 4% Gross profit 398.4 426.0 -6% Adjusted gross profit 443.8 466.7 -5% Adjusted gross profit margin 72% 72% Opera
Slide 21: H1 2015: Reconciliation adjusted results
H1 2015: Reconciliation adjusted results In $ millions Net Gross Operating Pretax Income Tax Net Diluted (Except EPS) sales profit income income tax rate income EPS Reported results 617.9 398.4 75.1 48.4 -4.0 8% 44.6 0.19 Adjustments Business integration 0.2 0.6 6.5 6.5 -2.0 4.3 0.02 and acquisition
Slide 22: Q2 and H1 2015: Currency impact
Q2 and H1 2015: Currency impact Q2 2015 Adjusted net sales Adjusted net sales Currency exposure Change (In $ millions) (CER) (As % of CER sales) (In $ millions) U.S. dollar 139.0 139.0 40% 0.0 Euro 70.5 87.3 25% -16.8 British pound 24.0 26.4 8% -2.4 Japanese yen 9.3 11.2 3% -1.9 Other currencies 76.
Slide 23: 2014: Quarterly and full-year results overview
2014: Quarterly and full-year results overview In $ millions Full-year (Except EPS) Q1 2014 Q2 2014 Q3 2014 Q4 2014 2014 Adjusted net sales 317.4 331.2 336.8 360.8 1,346.2 Adjusted gross profit 229.8 236.9 244.0 244.2 954.9 Adjusted operating income 74.8 81.2 84.8 71.6 312.5 Adjusted operating margi
Slide 24: 2010-2014: Adjusted diluted EPS trends
2010-2014: Adjusted diluted EPS trends Adjusted diluted EPS excluding Adjusted diluted EPS including In $ per share share-based compensation share-based compensation 2010 0.93 0.88 2011 0.98 0.92 2012 1.08 1.00 2013 1.14 1.02 2014 1.14 1.00 (No adjustment for (No adjustment for $0.08 restructuring c
Slide 25: Employees as of June 30, 2015
Employees as of June 30, 2015 Europe / Middle Asia Pacific / Total Total Americas Change East / Africa Japan / ROW Q2 2015 Q2 2014 Production 255 628 98 981 978 0% R&D 217 626 108 951 905 5% Sales 594 618 500 1,712 1,583 8% Marketing 79 156 69 304 323 -6% Admin 102 275 67 444 427 4% Total 1,247 2,30
Slide 26: New appointment to Executive Committee
New appointment to Executive Committee Brad Crutchfield Senior Vice President, Life Sciences Business Area and Member of Executive Committee Joined in June 2015 to lead QIAGEN’s activities involving customers in Academia, Pharma and Applied Testing Former Vice President and General Manager EMEA
Slide 27: QIAGEN senior leadership team
QIAGEN senior leadership team(1) CEO BA Molecular Diagnostics BA Life Sciences BA Bioinformatics Operations & SCM Executive Committee Thierry Brad Laura Douglas Bernard Crutchfield Furmanski Liu HR, Corporate Strat. Commercial Operations CFO & Mktg Services Peer Schatz Manuel Roland Thomas Mendez Sa
Slide 28: List of abbreviations
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 Leukemia ESBL Extended Spectrum Beta MP Mycoplas
Slide 29: Your contacts
Your contacts E-mail: ir@qiagen.com John Gilardi Alexandra Koenig Vice President Investor Relations Coordinator Corporate Communications and IR Phone: +49 2103 29 11711 Phone: +49 2103 29 11709 or +1 240 686 2222 Mobile: +49 152 018 11709 Mobile: +49 152 018 11711 E-mail: john.gilardi@qiagen.com E-m