Sample & Assay Technologies
QIAGEN 2012 Annual General Meeting June 26, 2013, Venlo, the - - PowerPoint PPT Presentation
QIAGEN 2012 Annual General Meeting June 26, 2013, Venlo, the - - PowerPoint PPT Presentation
Sample & Assay Technologies QIAGEN 2012 Annual General Meeting June 26, 2013, Venlo, the Netherlands Peer M. Schatz, Chief Executive Officer Forward looking statements Sample & Assay Technologies Safe Harbor Statement: Certain of the
Sample & Assay Technologies
Forward looking statements
Safe Harbor Statement: Certain of the 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. To the extent that any of the statements contained herein relating to QIAGEN's products, markets, strategy
- r operating results, including without limitation its expected operating results, are forward-looking, such statements are based on
current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between business segments, the commercial development of markets for our products in applied testing, personalized healthcare, clinical research, proteomics, women's health/HPV testing and nucleic acid-based molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN's products (including fluctuations due to general economic conditions, the level and timing of customers' funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors' products; market acceptance of QIAGEN's new products and the integration of acquired technologies and
- businesses. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S.
Securities and Exchange Commission (SEC). Regulation G: Some of the slides in this presentation contain certain summary information about QIAGEN N.V.’s sales, gross profit,
- perating income, net income, and earnings per share, which information is presented on a “non-GAAP financial measures” basis
rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN’s press releases, which can be found in the Investor Relations section of QIAGEN’s webpage under www.QIAGEN.com, for information on the Company’s operating income, net income, and earnings per share presented on a GAAP basis. Such GAAP-basis information will also be contained in the Company’s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission.
QIAGEN Annual General Meeting - June 26, 2013
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Sample & Assay Technologies
Agenda
3
- Prof. Dr. Detlev H. Riesner
Chairman of the Supervisory Board Peer Schatz CEO Annual General Meeting
QIAGEN Annual General Meeting - June 26, 2013
QIAGEN strategy update Introduction
Sample & Assay Technologies
Our mission, vision and strategy
Vision Future we envision A world where our Sample & Assay Technologies “Make Improvements in Life Possible” Mission Defines our purpose Market and technology leadership in enabling access to content in biological samples Strategy How to achieve vision and fulfill mission We leverage our Sample & Assay Technology leadership across customer classes
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Sample & Assay Technologies
Pharma
Making improvements in life possible
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Molecular revolution is only just beginning
How do we secure food supplies and protect public safety? Applied Testing Academia Molecular Diagnostics How do we fight diseases and improve healthcare? How do we develop better and safer drugs? How do we achieve scientific breakthroughs even faster?
Sample & Assay Technologies
World leader in Sample & Assay Technologies
Enable access to molecular information > 500 core products > 500,000 customers worldwide Innovative power Healthy financial position
2012 key figures (In $ millions)1
Net sales 1,254 + 10% (CER) Adjusted net income 260.7 11% Adjusted EPS (in $ per share) 1.08 Employees ~4,000
(1) US-GAAP results CER – Constant exchange rates QIAGEN Annual General Meeting - June 26, 2013
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Sample & Assay Technologies
Broad product offering with common purpose
From biological sample to highest-value interpretable result
SAMPLE Technologies ASSAY Technologies BIOLOGICAL SAMPLE VALUABLE MOLECULAR INFORMATION
Extract DNA, RNA and proteins in reliable process Make molecular info visible and available for interpretation
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Sample & Assay Technologies
Instruments
Comprehensive product range to support workflows
2012 net sales: $1.25 billion
Leading portfolio of molecular tests for use with range of instruments
Consumables
86% 14%
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Sample & Assay Technologies
2012 sales Key customers Product highlights
~49% Reference labs Hospitals Prevention: HPV, QuantiFERON-TB Profiling: Infectious diseases Personalized Healthcare: Companion diagnostics Point of Need: AmniSure, ESE ~8% Forensic labs Industrial Governments Human identification / forensics Veterinary medicine Food safety ~19% Big Pharma Specialty / Biotech CROs Gene and pathway analysis Biomarkers ~24% Government research Academic labs Life sciences research Translational medicine
Supporting >500,000 customers worldwide
Applied Testing Pharma Academia Molecular Diagnostics
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Sample & Assay Technologies
163 200 223 234 261 50 100 150 200 250 300 2008 2009 2010 2011 2012
Adjusted net income1
Sustained sales and earnings improvement
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(1) US-GAAP results CAGR – Compound annual growth rate Net income adjusted excluding business integration and relocation related charges as well as amortization of acquired IP and equity-based compensation (SFAS 123R)
2008 – 2012 CAGR = 14%
In $ m In $ m
2008 – 2012 CAGR = 19%
Net sales
893 1,010 1,087 1,170 1,255 200 400 600 800 1,000 1,200 1,400 2008 2009 2010 2011 2012
Sample & Assay Technologies
Full-year 2012: All customer classes deliver higher sales
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2012 sales contribution ~33%
U.S.: ~12% RoW: ~4%
~8% ~19% ~24% Change (CER) +33%
- 8%
+22% +5% +1%
Pharma Academia Applied Testing MDx growth drivers
(RoW)
HPV
(U.S.)
Rapid growth from Molecular Diagnostics growth drivers and Applied Testing 2012 net sales: $1.25 billion (+10% CER)
RoW – Rest of world CER – Constant exchange rates
Sample & Assay Technologies
Full year 2012: US-GAAP and IFRS results
QIAGEN N.V. Consolidated Income Statement for year ended December 31, 2012
QIAGEN Annual General Meeting - June 26, 2013
12 In $ thousands (Except per share data) IFRS 2012 US-GAAP 2012 IFRS vs. US-GAAP Net sales 1,254,456 1,254,456 Income from operations 171,174 169,814 1,360 Net income 126,222 129,537 (3,315) Earnings per share attributable to equity holders of QIAGEN N.V. (Basic and diluted) Weighted average number of common shares, basic 235,582 235,582 0% Basic in $ per share 0.54 0.55 (0.01) Weighted average number of common shares, diluted 237,923 240,746 (2,823) Diluted in $ per share 0.53 0.54 (0.01)
No material difference between US-GAAP and IFRS results
Sample & Assay Technologies
Full year 2012: Key results (US-GAAP)
In $ millions (Except EPS) FY 2012 FY 2011 Change $ (CER) Net sales 1,254.5 1,169.7 +7% (+10% CER) Adjusted gross profit 896.9 832.5 +8% Adjusted gross profit margin 71% 71% Adjusted operating income 356.4 319.6 +12% Adjusted operating income margin 28% 27% Adjusted tax rate 21% 24% Adjusted net income 260.7 234.4 +11% Adjusted EPS 1.08 0.98 Weighted average number of diluted common shares (In millions) 240.7 239.1
CER – Constant exchange rates For further information on adjustments, please refer to the reconciliation tables in QIAGEN's Q4 2012 earnings release or appendices. Adjusted net income and adjusted EPS based on net income attributable to owners of QIAGEN N.V.
+6% CER growth from recent acquisitions Achieved 2012 margin goal, strong finish 13
QIAGEN Annual General Meeting - June 26, 2013
In line with 2012 assumptions Exceeded $1.06 target
Sample & Assay Technologies
Driving innovation and growth in 2012
Initiatives 2012 achievements Drive platform success Exceeded QIAsymphony placement goal NGS initiative HPV automation Add content U.S. approvals / EU clearance Rotor-Gene Q PCR cycler therascreen KRAS artus Influenza therascreen BRAF Completed U.S. submissions therascreen EGFR QuantiFERON CMV New pharma co-development deals >35 projects in MDx pipeline AmniSure ROM test Broaden geographic presence Dynamic growth in top 7 EGM Grow efficiently and effectively New structure and leadership changes Free up resources to reinvest
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Sample & Assay Technologies
Prevention
Molecular Diagnostics portfolio with attractive potential
QuantiFERON-TB AmniSure and ESE therascreen companion diagnostics Expanding infectious disease menu
Applied Testing Pharma Academia Molecular Diagnostics
Personalized Healthcare Point of Need Profiling Reallocating resources to growth drivers
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Sample & Assay Technologies
2008 End 2009 End 2010 End 2011 End 2012 2013
>1,000
QIAsymphony: Unparalleled features driving dissemination of molecular testing
QIAsymphony: Expanding installed base and utilization
Well exceeded 2012 goals
>750 installed platforms
Double-digit sales growth in consumables
Expanding R&D pipeline of new assays Strong customer demand in all geographic regions
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Molecular Diagnostics Life Sciences ~70% ~30% >550 >750
Set to exceed 1,000 installed base during 2013
QIAsymphony installed base 2012 QIAsymphony achievements QIAsymphony end-2012 placements
>350 >200
Significant untapped growth opportunities 1,200 1,000 800 600 400 200
Sample & Assay Technologies
Other QIAGEN systems
Ongoing menu expansion
QIAGEN Annual General Meeting - June 26, 2013
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Adding content across customer classes and instruments
Biomarkers Pre-molecular disease testing Bioprocessing Forensics / Food safety Pathway analysis
QIAsymphony RGQ
Academia
therascreen artus Ipsogen Investigator mericon Certal therascreen artus Ipsogen therascreen artus Ipsogen QuantiFERON-TB QuantiFERON-CMV GeneGlobe GeneGlobe QuantiFERON-TB QuantiFERON-CMV
Sample & Assay Technologies
QuantiFERON-TB: Expanding range of target customers
Latent tuberculosis (TB)1
Expanding commercial channels to target physicians, military and prisons
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1 in 3 people worldwide…
has latent TB And of those with latent TB…
1 in 10 develop active TB
Latent TB test target groups
Public health TB control Employment screening Medical staff Fire and police Community living Correctional sites Military Universities Nursing homes Immunosuppressed patients TB risk detection Clinical trials Patient selection
(1) World Health Organization
Sample & Assay Technologies
Single visit, results in <24 hours Objective, high specificity: 99.2% Not affected by BCG vaccine Tuberculin Skin Test (1890s) QuantiFERON-TB Gold (2000s)
QuantiFERON-TB: Conversion to new gold standard
2-4 visits required Subjective, low specificity: 65.9% Not reliable for TB-vaccinated people
Latent TB testing: >$1 billion total addressable market potential
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Sample & Assay Technologies
All stakeholders benefit from Personalized Healthcare
Payors Cost savings Physicians Confidence in decisions Patients Better medicines Pharma companies Value creation Providers of diagnostics New market opportunities
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Sample & Assay Technologies
Project Partner Indication Biomarkers Status
Erbitux (cetuximab) Colorectal cancer KRAS U.S. regulatory approval in July 2012 Vectibix (panitumumab) Colorectal cancer KRAS U.S. submission (PMA) in H2 2011 PF-00299804 (dacomitinib) Lung cancer (NSCLC) KRAS In development Iressa (gefitnib) AstraZeneca Lung cancer (NSCLC) EGFR CE-IVD kit in Europe and
- ther non-U.S. markets
(afatinib) Lung cancer (NSCLC) EGFR U.S. submission (PMA) in H2 2012 Various projects Various therapeutic areas KRAS, JAK2,
- thers
KRAS U.S. approval July 2012 Others in development Various projects Not disclosed Various In development Not disclosed Confidential Non-oncology Confidential In development
Industry-leading portfolio of co-development projects
Selected co-development projects
Covering multiple technologies: PCR, panels and NGS options
NEW 2013
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Sample & Assay Technologies
U.S. KRAS market conversion progressing well
Oncologists demanding therascreen test
~ 110,000 ~ 75,000 ~ 45,000 Expansion
- pportunities
End-2012 QIAGEN share1 U.S. colorectal cancer patients (Eligible for KRAS testing)
Establishing therascreen brand for wave of companion diagnostics
U.S. market conversion initiatives Labs promoting therascreen test
Current KRAS testing
(1) Annualized estimate
Leading U.S. cancer diagnostics lab Offers network of >2,000 pathologists
Clarient Diagnostics adopts therascreen KRAS test
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Sample & Assay Technologies
Next-generation sequencing – a new technology
PCR Pyro Next-gen sequencing Number of genes <5 <100 Thousands Achieved Information Yes/No 100s of bases Millions / billions
- f bases
Cost per read $10 $10 >$1,000 Quantitative Yes Digital Semi DNA, RNA methylation Yes Yes Yes Complexity Low Middle High
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Sample & Assay Technologies
Expanding NGS from research to routine clinical use
Academia Pharma Applied Testing Molecular Diagnostics
Customer classes
High-throughput sequencing
Workflow needs
QIAGEN aiming to drive NGS into clinical research and molecular diagnostics
Benchtop sequencing Basic research / early studies Data validation Routine testing Target market
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Sample & Assay Technologies
Preparing to launch first NGS workflows in 2013
Assay Technologies
NGS workflow
Competitive portfolio GeneGlobe capabilities Global leader in Sample Technologies Automation
- ptions
Bioinformatics from QIAGEN and SAP Sample Technologies Data alignment / analysis NGS run Library preparation Target enrichment DNA / RNA preprocessing Primary sample to purified DNA / RNA
Sample-to-result workflows Flexibility and scalability Reliable and accurate results Using many proven QIAGEN technologies Cost competitive
Key features QIAsymphony NGS version QIAcube version
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Sample & Assay Technologies
Challenge: Interpreting rapidly growing data output
Need for better knowledge management Rapid growth in cancer biomarker data
Sequencing data is not the end – goal to create value with actionable results
Source: Genenews
Publications per year (Thousands) 20 15 10 5 1960 1970 1980 1990 2000 2010 Publication year
Oncogene publications Cancer biomarker publications Tumor suppressor gene publications Non-coding-RNA publications
Rapid rise in sequencing data
Source: Cisco Systems, GenBank and Alliance Bernstein
1982 1987 1991 1995 1999 2003 2007 2011E 1 1,000 1,000,000 1,000,000,000 Billions of bases Equal to 1.5 billion DVDs
QIAGEN Annual General Meeting - June 26, 2013
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Sample & Assay Technologies
Ingenuity: Leader in data analysis and interpretation
Private U.S. company with 120 employees 2012 sales: ~$20 million Standard for biological data interpretation Seamless integration into QIAGEN‘s ecosystem Synergies with GeneGlobe panels Strong ties to QIAGEN customers Curated biological knowledge system Full suite of analysis tools Scalable web-based platform
Benefits to QIAGEN Competitive advantages At a glance Key products
Global leader in applications to quickly analyze and interpret genomic data
Ingenuity Knowledge Base
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Sample & Assay Technologies
2013 goals
Accelerate organic and strategic growth Expansion through existing portfolio and targeted M&A Growth from new MDx products U.S. and EU submissions QIAsymphony placements NGS launch EGM contribution Deliver efficiency and effectiveness Optimize resource allocation Improvement projects Employer of choice Best talent and top teams Attracting and retaining top talent Strengthening QIAGEN culture Enhance customer experience Exceed customer expectations New QIAGEN internet site Improving customer satisfaction
2013 goals build on 2012 progress
2013 goals to accelerate innovation and growth
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Sample & Assay Technologies
Success factor: Employees
Providing ideal working conditions Advancing personal development Creating a strong corporate culture
Creating a vibrant workforce Focus / Accountability / Entrepreneurial decision-making
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Selected HR programs
Worldwide personnel planning and development program Performance-oriented compensation Healthy work-life balance services
Sample & Assay Technologies
Sustainability update
QIAGEN Annual General Meeting - June 26, 2013
30 Green development: Protecting the environment, health and safety through our products ~ 200 tons of CO2 saved in 2012 ~ 350 tons of CO2 to be saved annually starting in 2014 >10% of energy at Hilden site comes from regenerative sources ~44,000 liters / day of water saved at U.S. site Economic progress: Only a company that is economically sustainable can make improvements in life possible Among the best in “personnel development” among German companies Recognized as one of Germany’s “Top Employers” 70% of 11,000 customers in survey see QIAGEN with best reputation and reliable products Corporate citizenship: It is our responsibility to provide universal and equal access to life-saving technologies 1.5 million HPV test donations, could save lives of up to 14,000 women
Sample & Assay Technologies
Corporate governance
QIAGEN N.V. Organized under the laws of Netherlands Listed on NASDAQ Listed in Prime Standard (TecDax) of Frankfurt Stock Exchange QIAGEN endorses relevant Corporate Governance Principles: The Netherlands NASDAQ – Corporate Governance Rules Germany – Corporate Governance Code
Any deviations due to incompatibilities between various regulation Please see 2012 QIAGEN annual report for more information (www.QIAGEN.com)
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Commitment to highest corporate governance standards
Sample & Assay Technologies
QIAGEN Investor Relations 2012
Institutional conferences worldwide > 30 Visits to institutional investors > 200 Individual meetings with investors > 1,000 Visits to QIAGEN offices worldwide > 20
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*Thomson Reuters Extel Survey 2011
Targeted IR action plan focusing on international investors
Sample & Assay Technologies
8 19 4 Buy/Outperform Neutral Underperform/Sell
QIAGEN analyst ratings
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* Ratings not older than 90 days
Analyst ratings* (As of June 2013)
International coverage by > 30 brokerages
Sample & Assay Technologies
QIAGEN shares vs. NASDAQ Biotech index
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QIAGEN share price development – NASDAQ 2012
Jan 0% 20% 25% 35% 30% QIAGEN IXIC Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15% 10% 5%
Sample & Assay Technologies
QIAGEN shares vs. TecDAX index
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QIAGEN share price development – Frankfurt Stock Exchange (XETRA) 2012
QIAGEN TECDAX Jan 0% 20% 25% 35% 30% Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 15% 10% 5%
Sample & Assay Technologies
QIAGEN shares in 2013
2013 year-to-date performance as of June 24
QIAGEN Annual General Meeting - June 26, 2013
36 5% 10% 15% 20%
QIAGEN 2013 year-to-date share price vs. indices
QIAGEN trading volume
Source: Yahoo Inc.
Jan Feb March April May June < QIAGEN NASDAQ TECDAX
Sample & Assay Technologies
$100 million share repurchase program completed
Repurchased $100 million of shares
Purchases made on Frankfurt Stock Exchange and NASDAQ
5.07 million shares repurchased Helps compensate for higher interest expenses
$400 million U.S. private debt placement Share repurchase infrastructure established for any potential future programs
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Program overview
Maintaining strategic flexibility while improving shareholder returns
$100 million
Completed repurchase between October 2012 – March 2013
Achieved program goal
QIAGEN share repurchase program
Sample & Assay Technologies
Proposed for first election
Transforming the Supervisory Board
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- Prof. Dr. Detlev H. Riesner
- Dr. Werner Brandt
- Dr. Metin Colpan
- Prof. Dr. Manfred Karobath
- Ms. Elizabeth E. Tallett
Bringing new leadership talent and expertise to Supervisory Board
Standing for re-election
- Mr. Stéphane Bancel
- Mr. Lawrence A. Rosen
Not standing for re-election
- Mr. Erik Hornnaess
- Mr. Heino von Prondzynski
Sample & Assay Technologies
Track record of growth and innovation
Robust development pipeline
Strong free cash flow World leader in Sample & Assay Technologies
Driving the dissemination of molecular testing
Early stages of the molecular biology revolution
Key considerations: Strong growth potential
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Attractive and growing markets
Building leadership in Molecular Diagnostics
Highly competitive offering in Academia, Pharma and Applied Testing Capitalizing on diverse growth opportunities
Pioneer in Personalized Healthcare
Expansion into high-growth markets
Sample & Assay Technologies
Agenda
40
- Prof. Dr. Detlev H. Riesner
Chairman of the Supervisory Board Peer Schatz CEO Annual General Meeting
QIAGEN Annual General Meeting - June 26, 2013
QIAGEN strategy update Introduction
Sample & Assay Technologies
QIAGEN 2012 Annual General Meeting
June 26, 2013, Venlo, the Netherlands
Sample & Assay Technologies
Forward looking statements
Safe Harbor Statement: Certain of the 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. To the extent that any of the statements contained herein relating to QIAGEN's products, markets, strategy
- r operating results, including without limitation its expected operating results, are forward-looking, such statements are based on
current expectations and assumptions that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between business segments, the commercial development of markets for our products in applied testing, personalized healthcare, clinical research, proteomics, women's health/HPV testing and nucleic acid-based molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN's products (including fluctuations due to general economic conditions, the level and timing of customers' funding, budgets and other factors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN's products to integrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitors' products; market acceptance of QIAGEN's new products and the integration of acquired technologies and
- businesses. For further information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S.
Securities and Exchange Commission (SEC). Regulation G: Some of the slides in this presentation contain certain summary information about QIAGEN N.V.’s sales, gross profit,
- perating income, net income, and earnings per share, which information is presented on a “non-GAAP financial measures” basis
rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN’s press releases, which can be found in the Investor Relations section of QIAGEN’s webpage under www.QIAGEN.com, for information on the Company’s operating income, net income, and earnings per share presented on a GAAP basis. Such GAAP-basis information will also be contained in the Company’s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission.
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Sample & Assay Technologies
Agenda
QIAGEN Annual General Meeting - June 26, 2013
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1. Opening
Sample & Assay Technologies
Agenda
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2. Managing Board Report for the Year ended December 31, 2012
Sample & Assay Technologies
Financial results (US-GAAP) Strategic initiatives
Full year 2012: Overview
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2012 review
In $ millions (Except EPS)
2012 2011 Change
$ (CER)
Net sales 1,254 1,170 +7% (+10% CER) Adjusted operating income 356 320 +12% Adjusted diluted EPS 1.08 0.98 2013 perspectives Accelerating innovation and growth
Increase QIAsymphony placements Advance pipeline Launch NGS workflow Improve efficiency and effectiveness
Drive platform success: >750 cumulative QIAsymphony placements Add content: Important U.S. regulatory approvals Broaden geographic presence: Expansion in top 7 EGM Grow efficiently: Reallocating resources to growth Delivering faster growth All customer classes and regions support expansion 28% adjusted operating margin
CER – Constant exchange rates
Sample & Assay Technologies
Full year 2012: All customer classes deliver higher sales
2012 sales contribution ~33%
U.S.: ~12% RoW: ~4%
~8% ~19% ~24% Change (CER) +33%
- 8%
+22% +5% +1%
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Pharma Academia Applied Testing MDx growth drivers
(RoW)
HPV
(U.S.)
Rapid growth from Molecular Diagnostics growth drivers and Applied Testing 2012 net sales: $1.25 billion (+10% CER)
Molecular Diagnostics Life Sciences ~49% of sales / +15% CER ~ 51% of sales / +5% CER
RoW – Rest of world CER – Constant exchange rates
Sample & Assay Technologies
Gaining leadership in Molecular Diagnostics
QIAGEN net sales development: 2005 – 2012
QIAGEN Private Placement Investor Presentation
47
$398 m $1,254 m Molecular Diagnostics Life Sciences Other Leader in Profiling
artus assays
Leader in Prevention
HPV test Leader in Automation
QIAsymphony
Leader in Personalized Healthcare
DxS Applied Testing Pharma Academia Life Sciences 2005 2006 2007 2008 2009 2011 2012 2010
Sample & Assay Technologies
Investing in internal and external growth opportunities
Investing in QIAGEN R&D portfolio R&D investments as % of sales: ~10-11%
Consistently among the highest industry rates
Expanding product and technology portfolio Cellestis – QuantiFERON-TB test Ipsogen – blood cancer testing portfolio AmniSure – complementary to HPV portfolio Ingenuity – leader in biological data interpretation Intelligent Biosystems – NGS technologies Expanding geographic presence India and Taiwan Selected 2011-2013 activities
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CER – Constant exchange rates
Maximizing investments to drive innovation and growth
Sample & Assay Technologies
Full year 2012: Geographic sales
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CER – Constant exchange rates
Asia-Pacific / Japan leads full-year 2012 global performance
34% of total net sales / +9% CER
- Personalized Healthcare
- Academia and Pharma
- Northern Europe, Nordic
- Southern Europe
Europe / Middle East / Africa Americas 46% of total net sales / +8% CER
- QuantiFERON-TB
- Personalized Healthcare
- Applied Testing
- Academia and Pharma
- HPV (U.S. pricing, Latin America)
Rest of world represents approximately 1% of sales
19% of total net sales / +15% CER
- Growth in all customer classes
- China
- Japan
Other emerging markets Asia-Pacific / Japan
Sample & Assay Technologies
>750 QIAsymphony platforms now placed worldwide
Rising number of reagent
rental agreements vs. 2011 Instruments
Full year 2012: Consumables and instruments
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~14%
+11% CER
~86%
+10% CER
Growth in all customer classes and regions
New assays in Molecular Diagnostics and Applied Testing Consumables and other revenues
Q4 2012: Consumables and other revenues +4% CER (~85% of sales), instruments +7% CER (~15% of sales)
Sample & Assay Technologies
Full year 2012: Key results (US-GAAP adjusted)
In $ millions (Except EPS) FY 2012 FY 2011 Change $ (CER) Net sales 1,254.5 1,169.7 +7% (+10% CER) Adjusted gross profit 896.9 832.5 +8% Adjusted gross profit margin 71% 71% Adjusted operating income 356.4 319.6 +12% Adjusted operating income margin 28% 27% Adjusted tax rate 21% 24% Adjusted net income 260.7 234.4 +11% Adjusted EPS 1.08 0.98 Weighted average number of diluted common shares (In millions) 240.7 239.1
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CER – Constant exchange rates For further information on adjustments, please refer to the reconciliation tables in QIAGEN's Q4 2012 earnings release or appendices. Adjusted net income and adjusted EPS based on net income attributable to owners of QIAGEN N.V.
+6% CER growth from recent acquisitions Achieved 2012 margin goal, strong finish In line with 2012 assumptions Exceeded $1.06 target
Sample & Assay Technologies
Full year 2012: Reconciliation to US-GAAP adjusted
In $ millions (Except EPS) Net sales Gross profit Operating income Pretax income Income tax Tax rate Net income Diluted EPS(1) Reported results 1,254.5 824.0 169.8 145.2
- 15.6
11% 129.5 0.54 Adjustments Business integration, acquisition related and restructuring costs
- 7.9
46.6 46.5
- 13.9
32.8 0.14 Purchased intangibles amortization 78.5 114.6 114.6
- 38.7
75.9 0.31 Share-based compensation 2.3 25.4 25.4
- 5.6
19.7 0.08 Other non-recurring income and expense
- 0.4
3.2 2.8 0.01 Total adjustments 72.9 186.6 186.1
- 55.0
131.2 0.54 Adjusted results 1,254.5 896.9 356.4 331.3
- 70.6
21% 260.7 1.08
(1) In $ using 240.7 million diluted shares Table may have rounding differences Net income and adjusted EPS based on net income attributable to owners of QIAGEN N.V. QIAGEN Annual General Meeting - June 26, 2013
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Sample & Assay Technologies
Full year 2012: Balance sheet and free cash flow
QIAGEN Annual General Meeting - June 26, 2013
53 As of December 31 2012 2011 Group liquidity (In $ millions) 485 276 Net debt (In $ millions) 382 338 Shareholder equity ratio 66% 68% Net debt / adjusted EBITDA ratio 0.9 0.9
Leverage ratio: Net debt / EBITDA(1)
- 0.5
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2005
(1) Adjusted US-GAAP figures excluding acquisition, integration and restructuring related charges as well as share-based compensation.
Cash flow (In $ millions) 2012 2011 Net operating cash flow 245 245 Purchases of property, plant and equipment
- 102
- 87
Free cash flow 143 158 0.0 3.3 2.2 0.4
- 0.1
0.9 2006 2007 2008 2009 2010 2011 2012 0.9 0.2
Healthy financial position offers strategic flexibility to support business expansion
Sample & Assay Technologies
Strengthening balance sheet and improving returns
$100 million program completed in March 2013
Our view: QIAGEN shares undervalued
Compensating for additional interest expense from U.S. Private Placement Share repurchase U.S. private placement $400 million debt offering in October 2012
First-ever offering in U.S. debt market Advantages of historically low interest rates High investor demand reflected in low rates
Financial flexibility to support business expansion and improve returns
$100 million share repurchase program Number of shares: 5.07 million Volume-weighted price: EUR 14.59 (Frankfurt) $20.00 (NASDAQ) $400 m U.S. private placement: Average 3.66% $73 million 7-year term due 2019 (3.19%) $300 million 10-year term due 2022 (3.75%) $27 million 12-year term due 2024 (3.90%)
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Sample & Assay Technologies
QIAGEN group debt instruments
Improved financing structure
New U.S. private debt placement $400 million signed in October 2012 3.66% weighted average interest rate 7, 10 and 12-year maturity Investors from U.S. insurance companies Benefits Long-term financing at very attractive rates Diversification of investor base Repaid revolving credit facility (RCF) $220 million loan balance in October 2012 Funds used from U.S. private debt placement
55
Convertible bond $145 m Convertible bond $300 m RCF $520 m1 ($380 m undrawn) As of December 31, 2011 As of December 31, 2012
(1) €400 million revolving credit facility at EUR-USD exchange rate of €1.00 = $1.30 (2) €38 million other lines of credit at EUR-USD exchange rate of €1.00 = $1.30
Convertible bond $145 m Convertible bond $300 m RCF $520 m1 (All undrawn) U.S. private placement $ 400 m Other lines of credit $49 m2
QIAGEN Annual General Meeting - June 26, 2013
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Current debt maturity profile
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Notes:
(a)
Revolving Credit Facility - €0m drawn at May 31, 2013
(b)
conversion price US$12.64
(c)
final maturity in 2024 – next investor put in August 2014
(d)
conversion price US$20.00
(e)
final maturity in 2026 – next investor put in May 2017
(f)
final maturity in 2022
(g)
final maturity in 2024
(h)
2020 and beyond
QIAGEN: Maturities of current main debt instruments
amount in million
2012 2013 2014 2015 2016 2017 2018 2019 2020 Syndicated RCF € 400 1.5% convertible bond $145 3.25% convertible bond $300 3.19% USPP $73 3.75% USPP $300 3.90% USPP $27
(a) (b) (c) (d) (e) (g) (f) (h) QIAGEN Annual General Meeting - June 26, 2013
Sample & Assay Technologies
Stock Options and Restricted Stock Units (RSUs)
Stock Options
(In thousands)
2012 Outstanding at January 1 6,527 Granted 593 Exercised (1,444) Forfeited (82) Expired (261) Outstanding at December 31 5,333 Restricted Stock Units (RSUs)
(In thousands)
2012 Outstanding at January 1 5,651 Granted 2,574 Vested (831) Forfeited (473) Outstanding at December 31 6,921
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Sample & Assay Technologies
Employees as of December 31, 2012
Americas EMEA Asia-Pacific / Japan & RoW Total 2012 Total 2011 Change Production 219 695 86 1,000 924 8% R&D 139 478 53 670 758
- 12%
Sales 553 585 462 1,600 1,509 6% Marketing 60 168 61 289 281 3% Admin 123 240 77 440 466
- 6%
Total 1,094 2,166 739 3,999 3,938 2%
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QIAGEN Annual General Meeting - June 26, 2013
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Agenda
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3. Supervisory Board Report on the Company's Annual Accounts (the "Annual Accounts") for 2012
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Agenda
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- 4. Adoption of the Annual Accounts for 2012
(voting item)
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Agenda
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5. Reservation and dividend policy
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Agenda
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6. Discharge from liability of Managing Directors for the performance of their duties during 2012 (voting item)
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Agenda
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7. Discharge from liability of Supervisory Directors for the performance of their duties during 2012 (voting item)
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Agenda
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- 8. (Re-) Appointment of
- Mr. Stéphane Bancel
- Dr. Werner Brandt
- Dr. Metin Colpan
- Prof. Dr. Manfred Karobath
- Prof. Dr. Detlev H. Riesner
- Mr. Lawrence A. Rosen
- Ms. Elizabeth E. Tallett
as Supervisory Directors of the Company for a term ending on the date of the Annual General Meeting in 2014 (voting items)
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Erik Hornnaess
Deputy Chairman of the Supervisory Board Supervisory Director Chairman of the Compensation Committee Member of the Audit Committee Member of the Selection and Appointment Committee
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Sample & Assay Technologies
Heino von Prondzynski
Supervisory Director Member of the Audit Committee
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Stéphane Bancel
Nominated Supervisory Director President and Founding Chief Executive Officer of Moderna Therapeutics, Inc. Formerly CEO of bioMérieux SA
(French diagnostics company, 2012 sales: EUR 1.4 billion)
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Sample & Assay Technologies
Lawrence A. Rosen
Nominated Supervisory Director Chief Financial Officer and Member of the Board of Management of Deutsche Post DHL Formerly CFO of Fresenius Medical Care AG & Co. KGaA
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Sample & Assay Technologies
Agenda
QIAGEN Annual General Meeting - June 26, 2013
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- 8. (Re-) Appointment of
- Mr. Stéphane Bancel
- Dr. Werner Brandt
- Dr. Metin Colpan
- Prof. Dr. Manfred Karobath
- Prof. Dr. Detlev H. Riesner
- Mr. Lawrence A. Rosen
- Ms. Elizabeth E. Tallett
as Supervisory Directors of the Company for a term ending on the date of the Annual General Meeting in 2014 (voting items)
Sample & Assay Technologies
Agenda
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9. Reappointment of
- Mr. Peer M. Schatz
- Mr. Roland Sackers
as Managing Directors of the Company for a term ending on the date of the Annual General Meeting in 2014 (voting items)
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Agenda
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- 10. Reappointment of Ernst & Young Accountants as auditors
- f the Company for the year ending December 31, 2013
(voting item)
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Agenda
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- 11. Authorization of the Supervisory Board, until December 26,
2014
- a. to 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 the capital of the Company as at December 31, 2012 as included in the Annual Accounts for Fiscal Year 2012, (voting item); and
- b. to restrict or exclude the pre-emptive rights with respect to issuing
shares or granting subscription rights, the aggregate par value of such shares or subscription rights shall be up to a maximum of 20% of the aggregate par value of all shares issued and
- utstanding in the capital of the Company as at December 31,
2012 (voting item)
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Agenda
- 12. Authorization of the Managing Board, until December 26, 2014, to
acquire shares in the Company's own share capital (voting item)
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Agenda
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- 13. Questions
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Voting results
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4. Adoption of the Annual Accounts for 2012 6. Discharge from liability of Managing Directors for the performance of their duties during 2012 has been adopted has been adopted
Sample & Assay Technologies
Voting results
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7. Discharge from liability of Supervisory Directors for the performance of their duties during 2012 8. (Re-) Appointment of
- Mr. Stéphane Bancel
- Dr. Werner Brandt
- Dr. Metin Colpan
- Prof. Dr. Manfred Karobath
- Prof. Dr. Detlev H. Riesner
- Mr. Lawrence A. Rosen
- Ms. Elizabeth E. Tallett
as Supervisory Directors of the Company for a term ending on the date of the Annual General Meeting in 2014 has been adopted has been adopted
Sample & Assay Technologies
Voting results
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9. Reappointment of Mr. Peer M. Schatz and Mr. Roland Sackers as Managing Directors of the Company for a term ending on the date
- f the Annual General Meeting in 2014
- 10. Reappointment of Ernst & Young Accountants as
auditors of the Company for the year ending December 31, 2013 has been adopted has been adopted
Sample & Assay Technologies
Voting results
- 11. Authorization of the Supervisory Board, until December 26,
2014
- a. to 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 the capital of the Company as at December 31, 2012, as included in the Annual Accounts for 2012, (voting item); and
- b. to restrict or exclude the pre-emptive rights with respect to issuing
shares or granting subscription rights, the aggregate par value of such shares or subscription rights shall be up to a maximum of 20% of the aggregate par value of all shares issued and
- utstanding in the capital of the Company as at December 31,
2012 (voting item) has been adopted
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Voting results
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- 12. Authorization of the Managing Board, until December 26, 2014, to
acquire shares in the Company's own share capital has been adopted
Sample & Assay Technologies
QIAGEN Private Investor Day
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We would like to invite you to the QIAGEN Private Investor Day 2013 on
September 27, 2013
at the QIAGEN headquarters in Hilden, Germany
Contact: Sandra Kauenhowen +49 2103 29 11714 E-Mail: sandra.kauenhowen@qiagen.com
Sample & Assay Technologies
Agenda
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- 14. Closing of 2012 QIAGEN Annual General Meeting
Venlo, June 26, 2013
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