Qiagen N.V. · NYSE:QGEN
Qiagen — Q3 2018 Earnings Presentation
29 slides from Qiagen's earnings presentation, Oct 30, 2018
Slide 1: Third quarter and first nine months 2018 results
ESCV conference, Athens, Greece, September 2018 Third quarter and first nine months 2018 results October 30, 2018 Sample to Insight Third quarter and first nine months 2018 results 1
Slide 2: 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 3: Agenda
Agenda John Gilardi Introduction VP Corp Communications and IR Peer Schatz Chief Executive Officer Business and financial update Roland Sackers Chief Financial Officer Q&A session ASCO conference, Chicago, U.S., June 2018 Sample to Insight Third quarter and first nine months 2018 results 3
Slide 4: Q3 2018: Overview
Q3 2018: Overview 1 Solid Q3 performance and on track to achieve 2018 outlook Q3 and 9M net sales Q3 and 9M adjusted EPS(1,2) +4% total net sales growth (+6% CER vs. ~+6% CER outlook) (In $ millions, at actual rates) (In $ per share) $0.35 adjusted EPS ($0.36 CER vs. ~$0.33-0.34 CER outlook) +6.
Slide 5: Q3 and 9M 2018: Financial review
Q3 and 9M 2018: Financial review Third quarter First nine months (In $ millions, unless indicated) (Diluted EPS in $ per share) 2018 2017 Change 2018 2017 Change Net sales 377.9 364.0 4% (6% CER) 1,098.7 1,020.7 8% (6.4% CER) Gross profit margin 68% 66% 67% 65% Adjusted gross profit margin 72% 71% 7
Slide 6: Q3 and 9M 2018: Product type and customer class
Q3 and 9M 2018: Product type and customer class Q3 2018 net sales: $377.9 million 9M 2018 net sales: $1,098.7 million Sales (In $ m) % CER change % of sales Sales (In $ m) % CER change % of sales Consumables and related revenues $331 +6% 88% $971 +6% 88% Instruments $46 +11% 12% $127 +7% 12% Molecul
Slide 7: Q3 and 9M 2018: Geographic regions
Q3 and 9M 2018: Geographic regions Q3 2018 net sales: $377.9 million 9M 2018 net sales: $1,098.7 million Sales (In $ m) % CER change % of Sales (In $ m) % CER change % of sales sales Americas $186 +9% 49% $524 +10% 48% Europe / Middle East / Africa $111 +1% 30% $347 +3% 32% Asia-Pacific / Japan $80
Slide 8: Q3 and 9M 2018: Balance sheet and cash flow
Q3 and 9M 2018: Balance sheet and cash flow Balance sheet data (As of September 30 ) 2018 2017 Leverage ratio(1) Group liquidity (In $ millions) 921 975 Net debt (In $ millions) 848 774 3.3 Shareholder equity ratio 48% 50% Leverage ratio(1) 1.6x 1.5x 2.2 1.6 1.5 1,6 1.3 1.2 1.1 Cash flow 0.9 0.9 (In
Slide 9: Molecular Diagnostics
Sample to Insight portfolio Q3 2018 developments Setting standards for automated TB testing, launch of CE-marked workflow on DiaSorin platforms Molecular Diagnostics QuantiFERON World leaders meeting at United Nations commit to funding for TB prevention and care Strategic partnership and agree
Slide 10: QIAGEN's footprint in the Molecular Diagnostics market
QIAGEN’s footprint in the Molecular Diagnostics market Addressing the majority of the ~4.8 billion Molecular Diagnostics market in 2018 Single-plex PON Arrays Benchtop NGS GeneReader NGS System Real-time PCR Syndromic testing Fully integrated sample QIAstat-Dx and assay technologies NeuMoDx 96
Slide 11: NeuMoDx
NeuMoDx NeuMoDx: The next generation of clinical molecular testing Q3 2018 highlights Distribution agreement with NeuMoDx Inc. Fully integrated microfluidic design N96 Access to disruptive new technology for PCR in standard microplate format Launch of two clinical platforms PCR Contingent fu
Slide 12: QuantiFERON
QuantiFERON QuantiFERON-TB: Full automation sets new standard for TB testing Q3 2018 highlights Best-in-class test to screen for latent tuberculosis Double-digit CER growth in Q3, on track for 2020 revenue target of ~$300 m QuantiFERON-TB Gold Plus Standard test in clinical trial of first vacc
Slide 13: Next-generation sequencing
Next-generation sequencing QIAseq FastSelect: Solving a critical obstacle in RNA sequencing Q3 2018 highlights Depletes background of highly abundant RNA that is of low scientific value On track to achieve $140 million in 2018 NGS sales Selectively enriches RNA of interest Generates RNA-seq
Slide 14: Personalized Healthcare
Personalized Healthcare Immuno-oncology: Unleashing the immune system to cure cancer Q3 2018 highlights QIAseq Tumor Mutational Burden Panel Launch of QIAseq tumor mutational burden panel Featuring most advanced I-O related biomarkers Detecting TMB, MSI, SNVs, Indels via Digital NGS Designed
Slide 15: Q4 and FY 2018: Outlook and assumptions
Q4 and FY 2018: Outlook and assumptions As of October 29, 2018 Q4 2018 outlook Full-year 2018 outlook ~+6-7% CER ~+6-7% CER Net sales (Prior year: $396.9 m) (Prior year: $1,417.5 m) ~$0.39-0.40 CER ~$1.33-1.34 CER Adjusted EPS(1) (Prior year: $0.43) (Raised from ~$1.31-1.33) (Prior year: $1.27) Adju
Slide 16: Summary
Summary Strong Q3 2018 performance, on track to achieve 2018 goals Expanding Sample to Insight portfolio drives faster growth Addition of NeuMoDx provides access to fully integrated Sample to Insight molecular diagnostic platforms Reaffirming 2018 sales outlook and increasing adj. EPS target QIAGEN
Slide 17: Appendix
ASHG conference, San Diego, U.S., October 2018 Appendix Sample to Insight Third quarter and first nine months 2018 results 17
Slide 18: Q3 2018: Consolidated Statements of Income (unaudited)
Q3 2018: Consolidated Statements of Income (unaudited) Three months ended Three months ended (In $ thousands, except share data) September 30, 2018 September 30, 2017 Net sales 377,911 363,977 Cost of sales 121,135 123,096 Gross profit 256,776 240,881 Operating expenses: Research and development 42,
Slide 19: 9M 2018: Consolidated Statements of Income (unaudited)
9M 2018: Consolidated Statements of Income (unaudited) Nine months ended Nine months ended (In $ thousands, except share data) September 30, 2018 September 30, 2017 Net sales 1,098,675 1,020,673 Cost of sales 362,469 359,390 Gross profit 736,206 661,283 Operating expenses: Research and development 1
Slide 20: Q3 and 9M 2018: Reconciliation adjusted results
Q3 and 9M 2018: Reconciliation adjusted results In $ millions (Except EPS) Net Gross Operating Pretax Income Tax Net Diluted (unaudited) sales profit income income tax rate income EPS Third quarter 2018 Reported results 377.9 256.8 77.0 72.2 -11.9 16% 60.3 0.26 Adjustments Business integration, acqu
Slide 21: Q3 and 9M 2018: Currency impact
Q3 and 9M 2018: Currency impact Net sales Net sales Currency exposure Change (In $ millions) (CER) (As % of CER sales) (In $ millions) Third quarter 2018 U.S. dollar 152.4 152.4 39% 0.0 Euro 88.6 89.4 23% -0.8 British pound 30.7 31.4 8% -0.7 Japanese yen 12.6 12.6 3% 0.0 Other currencies 93.6 101.9
Slide 22: 2018: Quarterly and full-year income statement summary
2018: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2018 Q2 2018 Q3 2018 Q4 2018 YTD 2018 Net sales 343.6 377.2 377.9 1,098.7 Net sales (CER) 327.3 370.5 387.7 1,085.5 Gross profit 225.7 253.8 256.8 736.2 Gross profit margin 66% 67
Slide 23: 2017: Quarterly and full-year income statement summary
2017: Quarterly and full-year income statement summary (In $ millions, unless indicated) (Diluted EPS in $ per share) Q1 2017 Q2 2017 Q3 2017 Q4 2017 FY 2017 Net sales 307.7 349.0 364.0 396.9 1,417.5 Adjusted net sales 308.3 349.6 364.4 397.1 1,419.4 Gross profit 195.8 224.6 240.9 261.3 922.6 Gross
Slide 24: 2018: Total net sales overview
2018: Total net sales overview Net sales by customer class (In $ millions at actual rates / Q1 2018 Q2 2018 Q3 2018 Q4 2018 YTD 2018 change in actual, CER rates) Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Sales Act. CER Molecular Diagnostics 161 14% 9% 187 11% 10% 189 5% 9% 537 10%
Slide 25: Consolidated Balance Sheets
Consolidated Balance Sheets September 30, December 31, September 30, December 31, (In $ thousands, except par value) 2018 2017 (In $ thousands, except par value) 2018 2017 Assets (unaudited) Liabilities and Equity (unaudited) Current assets: Current liabilities: Cash and cash equivalents 599,842 657
Slide 26: Consolidated Statements of Cash Flows (unaudited)
Consolidated Statements of Cash Flows (unaudited) Nine months ended Nine months ended September 30, September 30, September 30, September 30, (In $ thousands) 2018 2017 (In $ thousands) 2018 2017 Cash flows from operating activities: Cash flows from financing activities: Net income 129,430 80,087 Pr
Slide 27: Employees as of September 30, 2018
Employees as of September 30, 2018 Europe / Asia Pacific / Total Total Americas Change Middle East / Africa Japan / ROW Q3 2018 Q3 2017 Production 277 639 143 1,059 996 6% R&D 233 773 50 1,056 978 8% Sales 561 748 622 1,931 1,888 2% Marketing 77 150 69 296 265 12% Administration 88 326 117 531 483 1
Slide 28: Abbreviations
Abbreviations Adj Adjusted ESBL Extended Spectrum Beta MP Mycoplasma Pneumonia AIV Avian influenza virus EUR Euro MRSA Methicillin-Resistant Staphylococcus Aureus ALK Anaplastic Lymphoma Kinase FDA Food and Drug Administration MTB Mycobacterium Tuberculosis AML1 Acute Lymphoblastic Leukemia FX Forei
Slide 29: Your contacts
Your contacts Download the QIAGEN IR App John Gilardi Dr. Sarah Fakih Alexandra Koenig Vice President Corporate Director Coordinator Communications and IR Investor Relations Investor Relations Phone: +49 2103 29 11711 Phone: +49 2103 29 11457 Phone: +49 2103 29 11709 Mobile: +49 152 018 11711 Mobile