Qiagen N.v. · NYSE:QGEN
Qiagen — Shareholder Meeting (June 2018)
62 slides from Qiagen's shareholder meeting presentation, Jun 19, 2018
Slide 1: 2017 Annual General Meeting
2017 Annual General Meeting June 19, 2018 Venlo, the Netherlands Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 1
Slide 2: Opening
1 Prof. Dr. Manfred Karobath Opening Chairman of the Supervisory Board Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 2
Slide 3: Managing Board Report for the year ended December 31, 2017
2 Managing Board Report for the year ended December 31, 2017 (“Calendar Year 2017”) Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 3
Slide 4: 2017 Annual General Meeting – Peer M. Schatz, CEO
2017 Annual General Meeting June 19, 2018 Venlo, the Netherlands Peer M. Schatz Chief Executive Officer Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 4
Slide 5: Forward looking and intended use statements
Forward looking and intended use statements 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. S
Slide 6: The Building Blocks of Life: DNA and RNA
THE BUILDING BLOCKS OF LIFE: DNA AND RNA The molecular revolution is gaining momentum – importance of valuable insights Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 6
Slide 7: Addressing the World's Most Pressing Challenges
ADDRESSING THE WORLD’S MOST PRESSING CHALLENGES How can we How can we How can we How can we achieve scientific further improve develop better improve breakthroughs outcomes for and safer drugs? public safety? even faster? patients? Expanding the range of customers who can benefit from molecular solu
Slide 8: Customers Rely on QIAGEN to Master These Challenges
CUSTOMERS RELY ON QIAGEN TO MASTER THESE CHALLENGES Faster Better More efficiently #1 Top 3 Sample Technologies Assay Technologies Bioinformatics Automation systems #1 Top 5 BIOLOGICAL VALUABLE SAMPLE TO INSIGHT SOLUTIONS SAMPLE MOLECULAR INSIGHTS QIAGEN: World leader in molecular testing solutions
Slide 9: QIAGEN at a glance
Academia ~23% QIAGEN at a glance Consumables (incl. bioinformatics) Scientific breakthroughs ◼ Leader in molecular testing solutions ◼ True hybrid covering continuum from ~87% Pharma Life Sciences to Molecular Diagnostics ~19% Better and safer drugs Facts and figures Applied Testing ◼ 2017 sales ~$1
Slide 10: QIAGEN going through transformation to focus on attractive growth opportunities
Sales by customer class (As % of annual net sales) 2016-2020 target: ~+7-9% CER CAGR 100% 100% Academia 45% 26% 23% Pharma 19% 21% Applied Testing 6% 10% 2% U.S. HPV 22% 55% MDx core portfolio 46% 25% 2009 2017 2020 QIAGEN going through transformation to focus on attractive growth opportunities CAGR
Slide 11: 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow
2020 ambitions Net sales Adjusted EPS Operating cash flow ~+7-9% CER ≥12% CER CAGR CAGR ~$600 m $1,338 m +6% CER $1.11 $340 m 2016 2020 2016 2020 2016 2020 target target target 2020 ambitions: Strong growth in sales, adjusted EPS and cash flow Sample to Insight QIAGEN Annual General Meeting, June 19
Slide 12: Key highlight areas: QIAGEN's Sample to Insight portfolio
Life Molecular Key highlight areas: QIAGEN’s Sample to Insight portfolio Sciences Diagnostics QIAstat-Dx NEW ✓ QuantiFERON ✓ Next-generation sequencing ✓ ✓ ✓ ✓ Powered by Personalized Healthcare QIAGEN Bioinformatics QIAsymphony ✓ ✓ Differentiated Technologies Applications including: ✓ ✓ ■ Liquid bi
Slide 13: QuantiFERON-TB: Key supporter of global fight to eliminate Tuberculosis
QuantiFERON-TB: Key supporter of global fight to eliminate Tuberculosis Total latent TB annual addressable market: ~70 million tests 2017 key achievements ◼ U.S. launch of 4th-generation QuantiFERON-TB Gold Plus ◼ New clinical data confirm patient stratification value of new CD8+ technology ◼ Winnin
Slide 14: NGS: Differentiated solutions across all segments of fast growing market
NGS: Differentiated solutions across all segments of fast growing market ~80% of all NGS runs conducted on samples processed with QIAGEN 2017 key achievements ◼ Exceeded $115 million CER in annual sales ◼ Rapid expansion of “digital NGS” QIAseq multiplex gene panel portfolio for use on any NGS seque
Slide 15: Personalized Healthcare: Enabling valuable clinical insights
Personalized Healthcare: Enabling valuable clinical insights to guide treatment decisions More than 25 master collaboration agreements 2017 key achievements ◼ Exceeded 25 master collaboration agreements with leading pharma and biotech companies ◼ First-ever NGS-based immuno-oncology Companion Diagno
Slide 16: QIAsymphony: Driving molecular testing in Molecular Diagnostics and Life Sciences
QIAsymphony: Driving molecular testing in Molecular Diagnostics and Life Sciences >2,000 cumulative installed systems in 2017 2017 key achievements ◼ Significantly exceeded 2,000 cumulative placements ◼ Successful regionalization strategy (22 CE-IVD tests, 5 FDA-cleared assays) ◼ Very positive custo
Slide 17: Differentiated Technologies: Integrating cutting-edge innovations
Differentiated Technologies: Integrating cutting-edge innovations into Sample to Insight QIAGEN: #1 in Sample Technologies 2017 key achievements ◼ Strengthening No. 1 leadership position in liquid biopsy sample processing ◼ ~75% market share in microbiome sample processing and full integration of MO
Slide 18: Bioinformatics: Best in-class data analysis and interpretation
Bioinformatics: Best in-class data analysis and interpretation The total amount of sequence data doubles every 7 months 2017 key achievements ◼ Strong market leader position in Bioinformatics ◼ Delivering value to customers with content enabled software ◼ Discovery segment growing based on microbial
Slide 19: QIAstat-Dx
QIAstat-Dx European launch of QIAstat-Dx at ECCMID QIAstat-Dx value proposition ◼ Launch with two panels and broad menu pipeline planned Sample to Insight One-step diagnostic solution System launch with CE-IVD marked respiratory and CE-IVD respiratory and gastrointestinal panels at launch, gastroi
Slide 20: 2018: Transformation driving growth and improved performance
2018: Transformation driving growth and improved performance 2018 ambitions ◼ Sample to Insight portfolio at the forefront of transformation ◼ Strong focus on execution and improved profitability ◼ Commitment to increasing returns and creating greater value Sample to Insight QIAGEN Annual General Me
Slide 21: Sustainability update
Sustainability update Green development Economic progress Corporate citizenship ◼ 384,000 kWh saved at Hilden site by ◼ Certified as one of Germany’s ◼ More than 1,300 hours of volunteer improving air conditioning systems “Top Employers 2017” work in the U.S. in 2017 ◼ Commitment to reduce energy ◼
Slide 22: Success factor: Employees
Success factor: Employees Diverse global workforce Family support Employee development ◼ ~4,700 employees ◼ Kindergarten supporting ◼ 3,772 employees took part in internal Hilden employees since 2008 trainings, totaling 7,309 training hours ◼ ~70 nationalities ◼ ~220 children have so far attended ◼
Slide 23: Corporate governance
Corporate governance About QIAGEN N.V. Endorsing relevant principles ◼ Organized under the laws of Netherlands ◼ Application of Dutch Corporate Governance Code ◼ Listed on NYSE (New York) ◼ NYSE – Corporate Governance Rules ◼ Member of TecDAX Index (Frankfurt) Sample to Insight QIAGEN Annual General
Slide 24: Investor Relations
Investor Relations Analyst ratings 2017 IR activities ◼ Private shareholder day: ~30 participants Buy 43% 32% ◼ Institutional conferences: ~20 events ◼ Individual meetings: ~650 meetings Hold 46% 68% Sell 11% 2016 2017 Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 24
Slide 25: 2017: QIAGEN shares (Frankfurt)
2017: QIAGEN shares (Frankfurt) QIAGEN share price development – Frankfurt Stock Exchange (euros) QIAGEN (Frankfurt) TecDAX Year-End: €26.13 50% 40% 37.5 % 30% 20% 10% 0% -7.6% (10)% (20)% Jan Apr Jul Sep Dez 2017 Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 25
Slide 26: 2017: QIAGEN shares (NYSE)
2017: QIAGEN shares (NYSE) QIAGEN share price development – NYSE (U.S. dollars) QIAGEN (NYSE) NASDAQ Biotech Index Year-End: $30.93 50% 40% 30% 20% 19.3 % 10% 6.3 % 0% (10)% (20)% Jan Apr Jul Sep Dez 2017 Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 26
Slide 27: 2018 YTD: QIAGEN share performance (Frankfurt)
2018 YTD: QIAGEN share performance (Frankfurt) 2018 YTD share price performance vs. indices (As of June 15, 2018, euros) QIAGEN (Frankfurt) TecDAX Current: €31.87 50% 40% 30% 20% 22.0 % 13.1 % 10% 0% (10)% (20)% Jan Feb Apr Jun 2018 Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 27
Slide 28: 2018 YTD: QIAGEN share performance (NYSE)
2018 YTD: QIAGEN share performance (NYSE) 2018 YTD share price performance vs. indices (As of June 15, 2018, U.S. dollars) Qiagen (NYSE) NASDAQ Biotech Index Current: $37.15 50% 40% 30% 20% 20.1 % 10% 0% 1.8 % (10)% (20)% Jan Feb Apr Jun 2018 Sample to Insight QIAGEN Annual General Meeting, June 19,
Slide 29: 2008 – 2018: QIAGEN share performance versus indices
2008 – 2018: QIAGEN share performance versus indices Share price performance vs. indices Share price performance vs. indices (As of June 15, 2018) (As of June 15, 2018) QIAGEN (Frankfurt) DAX QIAGEN (NYSE) NASDAQ 250% 250% 216% 200% 200% 140% 150% 150% 126% 111% 100% 92% 100% 87% 79% 60% 54% 42% 46%
Slide 30: Summary
Summary Sample to Insight portfolio driving transformation Moving ahead on sustainable growth and leverage trajectory Building a strong foundation to excel toward 2020 and beyond Committed to higher returns and greater value creation Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 30
Slide 31: 2017 Annual General Meeting – Roland Sackers, CFO
2017 Annual General Meeting June 19, 2018 Venlo, the Netherlands Roland Sackers Chief Financial Officer Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 31
Slide 32: Forward looking and intended use statements
Forward looking and intended use statements 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. S
Slide 33: 2017: Overview (U.S. GAAP adjusted)
2017: Overview (U.S. GAAP adjusted) 1 Achieved full-year 2017 targets Key results ◼ +7% CER adj. net sales growth excl. business portfolio change In $ millions (Except EPS) FY 2017 FY 2016 Change $ / (CER) vs. ~+7% CER outlook Net sales 1,417.5 1,338.0 +6% (+6%) ◼ $1.27 adjusted EPS ($1.27 CER) vs.
Slide 34: 2017: Financial review
2017: Financial review Full-year (In $ millions, unless indicated) (Diluted EPS in $ per share) 2017 2016 Change Net sales 1,417.5 1,338.0 6% (6% CER) Adjusted net sales(1) 1,419.4 1,338.0 6% (6% CER) Adj. net sales excluding business portfolio changes(2) 1,394.3 1,302.2 7% (7% CER) Gross profit mar
Slide 35: 2017: Product type and customer class
2017: Product type and customer class FY 2017 net sales: $1.418 billion FY 2017 adj. net sales: $1.419 billion Adj. Sales (In $ m) % CER change % of sales Consumables and related revenues $1,245 +7% 88% Instruments $175 +1% 12% Molecular Diagnostics(1) $683 +6% 48% Applied Testing $137 +14% 10% Phar
Slide 36: 2017: Geographic regions
2017: Geographic regions FY 2017 net sales: $1.418 billion FY 2017 adj. net sales: $1.419 billion Adj. Sales (In $ m) % CER change % of sales Americas(1) $655 +4% 46% Europe / Middle East / Africa $463 +9% 33% Asia-Pacific / Japan $299 +7% 21% Full-year 2017: All regions deliver solid growth, as top
Slide 37: 2017: Reconciliation of reported to adjusted results (U.S. GAAP)
2017: Reconciliation of reported to adjusted results (U.S. GAAP) In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS(1) Full-year 2017 Reported results 1,417.5 922.6 153.4 114.4 -74.0 NM 40.4 0.17 Adjustments Busines
Slide 38: 2017: Review of U.S. GAAP and IFRS results
2017: Review of U.S. GAAP and IFRS results Consolidated Income Statements for the year ended December 31, 2017 Reconciliation of net income from IFRS to U.S. GAAP (In $ millions) +17 67.4 -41 -2 40.4 26 24 -1 23 23 2017 Revaluation of Other Intangibles Tax impacts(2) 2017 IFRS upper calls(1) U.S. GA
Slide 39: 2017: Review of U.S. GAAP and IFRS results
2017: Review of U.S. GAAP and IFRS results Consolidated Income Statements for the year ended December 31, 2017 Difference In $ millions U.S. GAAP IFRS (U.S. GAAP (Except per share data) 2017 2017 vs. IFRS) Net sales 1,417.5 1,417.5 Gross profit 922.6 912.6 10.0 Income from operations 153.4 156.9 -3.
Slide 40: 2017: Balance sheet and cash flow
2017: Balance sheet and cash flow Balance sheet data (As of December 31) 2017 2016 Leverage ratio(1) Group liquidity (In $ millions) 1,017 532 Net debt (In $ millions) 743 537 3,3 Shareholder equity ratio 50% 61% Leverage ratio(1) 1.5x 1.2x 2,2 1,6 1,5 1,3 1,2 0,9 1,1 Cash flow 0,9 (In $ millions) 2
Slide 41: Capital allocation strategy
Capital allocation strategy Reinvest for organic growth ◼ Capture more value from our Sample to Insight portfolio New products Geographic expansion Increase returns Disciplined ◼ Returned $300 million in 2017 capital allocation ◼ New commitment in 2018 to return $200 million via repurchases Targ
Slide 42: 2017: Debt structure
2017: Debt structure Structure as of December 31, 2017 Maturities of debt instruments (In $ millions) 600 2019 Notes Cash and 500 short-term 73 2021 Notes investments $1017 m 400 300 2023 Notes 41 300 Schuldschein Net debt 200 430 300 400 $743 m 27 U.S. Private 100 133 Placement 114 17 0 2018 2019 2
Slide 43: Digitization
Digitization ~38% >440 of sales via digital accounts now connected channels in 2017 to our eProcurement channel 50% 10.7% increase in customer purchasing goal for 2020 – on track after switch to digital channels 110101010101 15% $ 01001010110 110101010101 2020 goal: increased web-shop revenues 01001
Slide 44: Employees as of December 31, 2017
Employees as of December 31, 2017 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q4 2017 Q4 2016 Production 279 679 123 1,081 996 9% R&D 218 691 44 953 995 -4% Sales 592 718 575 1,885 1,909 -1% Marketing 66 154 58 278 308 -10% Administration 90 325 76 491 476 3%
Slide 45: Summary
Summary Strong focus on execution and performance 2017: Delivered on objectives and created a stronger company Set to generate strong organic growth and further leverage Committed to higher returns and disciplined capital deployment Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 45
Slide 46: Supervisory Board Report on the Company's Annual Accounts
3 a. Supervisory Board Report on the Company’s Annual Accounts (the “Annual Accounts”) for Calendar Year 2017 b. Report of the Compensation Committee of the Supervisory Board for Calendar Year 2017 Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 46
Slide 47: Adoption of the Annual Accounts for Calendar Year 2017
4 Adoption of the Annual Accounts for Calendar Year 2017 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 47
Slide 48: Reservation and dividend policy
5 Reservation and dividend policy Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 48
Slide 49: Discharge from liability of the Managing Directors
6 Discharge from liability of the Managing Directors for the performance of their duties during Calendar Year 2017 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 49
Slide 50: Discharge from liability of the Supervisory Directors
7 Discharge from liability of the Supervisory Directors for the performance of their duties during Calendar Year 2017 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 50
Slide 51: Reappointment of the following seven Supervisory Directors
8 Reappointment of the following seven Supervisory Directors of the Company for a one year term ending at the close of the Annual General Meeting in 2019 (voting item) a. Mr. Stéphane Bancel b. Dr. Håkan Björklund c. Dr. Metin Colpan d. Prof. Dr. Ross L. Levine e. Prof. Dr. Elaine Mardis f. Mr. Lawr
Slide 52: 2017: Supervisory Board members
2017: Supervisory Board members Supervisory Board members Prof. Dr. Manfred Karobath Stéphane Dr. Håkan Dr. Metin Prof. Dr. Elaine Prof. Dr. Ross Lawrence A. Elizabeth E. Bancel Björklund Colpan Mardis Levine Rosen Tallett Six new Board members appointed since 2011 with broad range of experience Sam
Slide 53: 2017: Supervisory Board committees
2017: Supervisory Board committees Independent Audit Compensation Selection and Appointment Science and Technology Committee Committee Committee Committee Prof. Dr. Manfred Karobath Chair Stéphane Bancel Dr. Håkan Björklund Dr. Metin Colpan Chair Prof. Dr. Elaine Mardis Prof. Dr. Ross Levine Lawrenc
Slide 54: Prof. Dr. Manfred Karobath: Essential contributor to QIAGEN's success and growth
Prof. Dr. Manfred Karobath: Essential contributor to QIAGEN‘s success and growth Prof. Dr. Manfred Karobath ◼ Member of the QIAGEN Supervisory Board for 18 years ◼ Chairman of the QIAGEN Supervisory Board for two years ◼ Attended more than 90 Board meetings ◼ Participated in more than 650 hours of m
Slide 55: Reappointment of the following two Managing Directors
9 Reappointment of the following two Managing Directors of the Company for a term ending on the date of the Annual General Meeting in 2019 (voting item) a. Mr. Peer M. Schatz b. Mr. Roland Sackers Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 55
Slide 56: Reappointment of KPMG Accountants N.V. as auditors
10 Reappointment of KPMG Accountants N.V. as auditors of the Company for the calendar year ending December 31, 2018 (voting item) Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 56
Slide 57: Authorization of the Supervisory Board
11 Authorization of the Supervisory Board, until December 19, 2019 to: a. issue a number of Common Shares and financing preference shares and grant rights to subscribe for such shares, the aggregate par value of which shall be equal to the aggregate par value of all shares issued and outstanding in
Slide 58: Authorization of the Managing Board
12 Authorization of the Managing Board, until December 19, 2019, to acquire shares in the Company’s own share capital (voting item) Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 58
Slide 59: Questions
13 Questions Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 59
Slide 60: Closing
14 Closing Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 60
Slide 61: Thank you
Thank you Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 61
Slide 62: QIAGEN Private Investor Day 2018
Wir möchten Sie herzlich zu unserem QIAGEN Private Investor Day 2018 am 28. September, 2018 von ca. 11:00 – 16:00 bei QIAGEN in Hilden, Deutschland einladen Kontakt: Alexandra König +49 2103 29 11709 E-Mail: alexandra.koenig@qiagen.com Sample to Insight QIAGEN Annual General Meeting, June 19, 2018 6