Quidelortho Corporation · NASDAQ:QDEL
Quidelortho — William Blair 42nd Annual Growth Stock Conference (June 2022)
27 slides from Quidelortho's conference presentation, Jun 8, 2022
Slide 1: William Blair 42nd Annual Growth Stock Conference
William Blair 42nd Annual Growth Stock Conference June 08, 2022
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements: This presentation of QuidelOrtho Corporation (“QuidelOrtho” or the “Company”) contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify thes
Slide 3: Our History and Future Focus
Our History and Future Focus 1939 1979 2020 — — — 2022 + 1978 2019 2021 ▪ Ortho formed in 1939 ▪ Quidel founded in 1979 ▪ Quidel launched Savanna ▪ QuidelOrtho created in business within Johnson & Johnson MDx system ex-US combination of Quidel and ▪ Ortho became an independent Ortho Clinical Diagnos
Slide 4: Key Messages
Key Messages The combination creates an in vitro diagnostics leader, bringing together innovative, complementary products, solutions, and services that enhance the health and well-being of patients across the globe Integration of the organizations is our top priority, while maintaining the culture t
Slide 5: Highly experienced management with proven track record
Highly experienced management with proven track record Doug Bryant Robert Bujarski Joe Busky Michael Iskra Chairman and President and Chief Financial Officer Chief Commercial Officer Chief Executive Officer Chief Operating Officer • President and CEO • Chief Operating Officer • Chief Financial Offic
Slide 6: QuidelOrtho: A Global In Vitro Diagnostics Leader
QuidelOrtho: A Global In Vitro Diagnostics Leader customers in more than more than approximately 130+ Countries and 330 Products $3.7B 30% Adjusted EBITDA Margin In 2021 Revenue Territories across instruments and assays across instruments and assays1 more than approximately more than 6K $50B 100K $7
Slide 7: Combination creates a global IVD leader
Combination creates a global IVD leader ’22 – ’24E FY 2021 IVD Revenue revenue ’22E EBITDA CAGR6 margin6 ($ in billions) Top-6 (1) 19.3 3.8% 39.8% 5.2% 28.6% (1) Diagnostics player 15.6 (1) 9.8 5.9% 35.0% 6.0% 21.0% (1) 5.9 100,000+ (2) 5.7 6.2% 27.9% Instrument installed base QuidelOrtho 3.7 11.2%
Slide 8: Large and growing markets
Large and growing markets Point-of-Care Clinical Immunoassay Molecular Transfusion Chemistry (Central Lab) Diagnostics Medicine Total $15.2B $7.5B $17.0B $20.6B $2.1B Addressable Market1 Steady State 7-9% 3-5% 6-8% 8-10% 2-4% Growth2 • Expanded access • Growing appreciation for • Menu expansion • De
Slide 9: Positioned to take advantage of market trends
Positioned to take advantage of market trends Manage chronic conditions ✓ ✓ Surgical intervention ✓ ✓ Rising demand for Emerging infectious diseases ✓ ✓ diagnostic testing Diagnostic tests to support newly invented markers ✓ ✓ Repeated therapy monitoring ✓ ✓ Increased demand for testing at home and
Slide 10: Market trends – proliferation of testing sites
Market trends – proliferation of testing sites
Slide 11: Menu of offerings covers the entire diagnostics spectrum
Menu of offerings covers the entire diagnostics spectrum ~ $23B ~ $25B ~$2B Point-of-care Clinical Laboratories Transfusion Medicine A Segment Leader in PoC Cardiac and Respiratory Rapid Testing Rapid Point-of-Care Testing Specialist with a state-of-the-art Molecular Diagnostics Platform QuickVue® T
Slide 12: Expected growth drivers
Expected growth drivers Integration of the organizations and execution on both cost ($90M) and revenue ($100M) synergies, while maintaining the culture that defines us Cross-selling of our combined product portfolio through our global commercial teams with a key focus on OUS opportunities Continued
Slide 13: Multiple product-based growth drivers
Multiple product-based growth drivers Savanna Sofia Fully-integrated rapid multiplex Molecular system Point-of-Care system that is uniquely positioned for the decentralization of testing • Easy-to-use, with one of the fastest turnaround times and a small footprint utilizing a cost-effective mini-pan
Slide 14: Savanna’s differentiators include cost advantage, panel size and TAT
Savanna’s differentiators include cost advantage, panel size and TAT System has strong appeal in Ortho’s small-to-medium sized hospital customers Multiplexing technology provides quick diagnosis in one sample 1 • Magnetic bead based nucleic acid isolation • 4 color PCR multiplexing for up to 12 anal
Slide 15: Global commercial footprint provides channel to accelerate compelling product portfolio
Global commercial footprint provides channel to accelerate compelling product portfolio ✓ Global infrastructure across 130 countries ✓ Strong presence in mid- and high-volume hospitals ✓ 2,300 global commercial teammates V ✓ Proven track record of worldwide commercial excellence Current Quidel comme
Slide 16: Integration & Financials
Integration & Financials
Slide 17: Strong execution on integration with clear milestones ahead
Strong execution on integration with clear milestones ahead Process allows the rest of the organization to continue running and growing the businesses Executive steering committee Integration management team Closed the deal & Integrate the Capture synergies prepared for integration organization Anno
Slide 18: Strong financial profile w/ significant synergy opportunities
Strong financial profile w/ significant synergy opportunities1 Synergy opportunity Cost • ~$90 million of achievable annual cost synergies identified from optimizing Addressable market combined company infrastructure, representing ~5% of estimated total ~$50B opportunity operating costs Long-term re
Slide 19: Very Little Customer Overlap, Even in the United States
Very Little Customer Overlap, Even in the United States Analysis of Top 20% U.S. Customer Accounts, which represent vast majority of revenue Revenue by End Segment Account by End Segment 31% 18% 51% Hospitals 45% 23% 33% 11% 84% 5% POLs 3% 91% 7% 21% 53% 26% Labs 12% 57% 31% Overlapping Non-Overlapp
Slide 20: 1Q 2022 / FY 2021 Pro Forma Financial Results
1Q 2022 / FY 2021 Pro Forma Financial Results1 1Q22 1Q21 Growth 2021 2020 Growth Total Revenue $1,502 $882 +72% $3,741 $3,428 +8% Adjusted EBITDA $780 $390 +100% $1,518 $1,563 (3%) Adjusted EBITDA Margin 52% 44% +770bps 41% 46% (500bps) 2021 Business Unit Revenue 2021 Regional Revenue 2021 Category
Slide 21: Successful Debt Refinancing Saves $45M Interest Expense
Successful Debt Refinancing Saves $45M Interest Expense QuidelOrtho Debt Legacy Ortho Debt1 $2.75 B ~$700 M $2.2 B <$300 M Term Loan A Operating Cash Flow3 Total Debt Operating Cash Flow <3% ~2.0x Net Debt to adjust >5% 3.7x Net Debt to LTM Interest Rate Interest Rate EBITDA Ratio4 EBITDA Ratio2 1.
Slide 22: Closing
Closing
Slide 23: Key Messages
Key Messages The combination creates an in vitro diagnostics leader, bringing together innovative, complementary products, solutions, and services that enhance the health and well-being of patients across the globe Integration of the organizations is our top priority, while maintaining the culture t
Slide 24: Appendix
Appendix
Slide 25: Pro Forma Adjusted EBITDA Reconciliation
Pro Forma Adjusted EBITDA Reconciliation Fiscal Quarter Fiscal Year $ millions Q1 2022 Q1 2021 2021 2020 Pro Forma Net Income $494.7 $139.0 $649.9 $598.4 Interest expense, net 33.5 45.4 151.8 206.7 Provision for income taxes 144.2 47.1 224.5 216.6 Depreciation and amortization 95.7 95.8 383.5 375.0
Slide 26: Reported and Constant Currency Revenue Reconciliation
Reported and Constant Currency Revenue Reconciliation Fiscal Quarter Percent Currency Constant $ millions Change Impact Currency (1) Q1 2022 Q1 2021 Pro Forma Revenue $1,502.4 $882.1 70% (2)% 72% Fiscal Year Percent Currency Constant $ millions Change Impact Currency (1) 2021 2020 Pro Forma Revenue
Slide 27: Thank You
Thank You William Blair 42nd Annual Growth Stock Conference
QuidelOrtho — William Blair 42nd Annual Growth Stock Conference (June 2022) on 6ix