Tecan Group Ag · SIX:TECN
Tecan — FY2012 Earnings Presentation
29 slides from Tecan's earnings presentation, Mar 7, 2013
Slide 1: Full Year Results 2012
Zürich, March 7th 2013 Full Year Results 2012 Analyst & Media Conference
Slide 2: Speakers
Speakers Dr. David Martyr, CEO Dr. Rudolf Eugster, CFO
Slide 3: Agenda
Tecan Full Year Results 2012 / March 7th 2013 / p3 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers
Slide 4: Solid Performance in 2012
Tecan Full Year Results 2012 / March 7th 2013 / p4 Solid Performance in 2012 • Closed 2012 with a solid result overall in a difficult market environment • Growth accelerated considerably in H2 2012 • China, Components and Consumables business posted double-digit growth • Operating profit margin abov
Slide 5: Agenda
Tecan Full Year Results 2012 / March 7th 2013 / p5 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers
Slide 6: 2012 Sales Performance and Order Entry
Tecan Full Year Results 2012 / March 7th 2013 / p6 2012 Sales Performance and Order Entry Sales FY 2012 400 377.0 391.1 • Sales FY 2012 vs. FY 2011 350 • +3.8% in Swiss Francs 300 250 • +1.9% in local currencies 200 150 • Sales H2 2012 vs. H2 2011 • +7.1% in Swiss Francs CHF (mio) 100 50 • +3.3% in
Slide 7: FY 2012 Gross Profit
Tecan Full Year Results 2012 / March 7th 2013 / p7 FY 2012 Gross Profit Gross Profit (% = as a % of sales) • Gross profit increased to CHF 198.3m • CHF 6.6m or 3.4% above 2011 200 191.7 198.3 180 160 140 • Gross profit margin at 50.7% 120 • Net effect of -20 bps due to 50.7% 50.9% CHF (mio) 100 80 •
Slide 8: FY 2012 Cost Structure
Tecan Full Year Results 2012 / March 7th 2013 / p8 FY 2012 Cost Structure Operating Expenses (% = as a % of sales) • Operating costs increased in line with sales • Selling & Marketing 141.4m 147.0m 160 (37.6%) • Increased in line with sales (37.5%) 140 35.6 • Continued investments in Asia Pacific 36
Slide 9: FY 2012 EBIT
Tecan Full Year Results 2012 / March 7th 2013 / p9 FY 2012 EBIT EBIT (% = as a % of sales) • EBIT increased to CHF 52.3m • CHF 1.0m or 2.0% above 2011 60 55 50 51.3 52.3 • EBIT margin at 13.4% 45 • Above expected range of 12.2 - 13.2% 40 35 • Effects impacting the EBIT margin: 13.4% 13.6% 30 CHF (mi
Slide 10: FY 2012 Net Profit
Tecan Full Year Results 2012 / March 7th 2013 / p10 FY 2012 Net Profit Net Profit (% = as a % of sales) • Net profit of CHF 42.2m • Net profit in 2011 benefited from gains 50 44.9 from currency hedging and an 42.2 40 extraordinary low tax rate 30 • Net profit margin reached 10.8% 11.9% 10.8% CHF (mi
Slide 11: FY 2012 Basic Earnings per Share
Tecan Full Year Results 2012 / March 7th 2013 / p11 FY 2012 Basic Earnings per Share Basic Earnings per Share • Earnings per share of CHF 3.90 4.5 4.18 4 3.90 • Average number of shares at 3.5 10.81m (2011: 10.75m) 3 2.5 • Number of shares outstanding at CHF / share 2 Dec 31, 2012: 10.90m 1.5 1 0.5
Slide 12: FY 2012 Cash Flow
Tecan Full Year Results 2012 / March 7th 2013 / p12 FY 2012 Cash Flow 200000 165.1m 160000 +45.0m -42.6m 144.5m from Operations prefinancing -13.4m -9.2m 120000 excl. prefinancing of OEM from Investments from 80000 development Financing1 Cash at end Cash at end 40000 of 2011 of 2012 0 • Cash flow fr
Slide 13: 2012 Segment Sales
Tecan Full Year Results 2012 / March 7th 2013 / p13 2012 Segment Sales Sales (in CHF millions) • Life Sciences Business: 250.0 232.2 235.2 • FY 2012: Sales 1.3% above prior-year in CHF and 1.1% below in local currencies 200.0 156.0 • Sales moderately down for detection 144.7 150.0 2011 instruments a
Slide 14: FY 2012 Segment Profitability
Tecan Full Year Results 2012 / March 7th 2013 / p14 FY 2012 Segment Profitability EBIT (in CHF millions) • Life Sciences Business: 40.0 35.6 • EBIT up by 22% to CHF 29.0m 35.0 30.6 29.0 • EBIT margin increased 200 bps to 11.6% 30.0 23.8 • Despite higher R&D spending 25.0 2011 20.0 • Increase mainly
Slide 15: 2012 Regional Sales Development
Tecan Full Year Results 2012 / March 7th 2013 / p15 2012 Regional Sales Development YoY % +23.1% in LC • Europe: lower sales in Partnering YoY % YoY % Business due to lower engineering +21.5% in CHF +20.2% in LC +5.4% in LC income with a program ramping down; +24.5% in CHF Others +10.4% in CHF also
Slide 16: FY 2012 Key Figures
Tecan Full Year Results 2012 / March 7th 2013 / p16 FY 2012 Key Figures CHF m 2011 2012 Δ 11/12 Sales 377.0 391.1 3.8% Gross Profit 191.7 198.3 3.4% in % of sales 50.9% 50.7% R&D 47.0 51.5 9.5% in % of sales 12.5% 13.2% OPEX 141.4 147.0 4.0% in % of sales 37.5% 37.6% Operating profit / EBIT 51.3 52.
Slide 17: Agenda
Tecan Full Year Results 2012 / March 7th 2013 / p17 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers
Slide 18: Priorities 2013: Commence Instrument Shipments for P16
Tecan Full Year Results 2012 / March 7th 2013 / p18 Priorities 2013: Commence Instrument Shipments for P16 • Partner Dako (an Agilent Technologies Company) unveiled the Dako Omnis • New fully-automated advanced staining platform for tissue-based cancer diagnostics • Partnering Business Building on T
Slide 19: Priorities 2013: Commence Instrument Shipments for P14
Tecan Full Year Results 2012 / March 7th 2013 / p19 Priorities 2013: Commence Instrument Shipments for P14 • Tecan is developing and will supply a next generation blood-banking instrument • Builds upon established OEM partnership with a global leader Partnering Business • Customer feedback on protot
Slide 20: Priorities 2013: Increase Sales Momentum in China
Tecan Full Year Results 2012 / March 7th 2013 / p20 Priorities 2013: Increase Sales Momentum in China • Major investments in public healthcare Life Sciences Business and life science research • Tecan has been operating in Beijing since 2004, only since fall 2008 with an own legal entity in Shanghai
Slide 21: Priorities 2013: Roll Out of New Technologies
Tecan Full Year Results 2012 / March 7th 2013 / p21 Priorities 2013: Roll Out of New Technologies • Tecan continues to enhance and broaden the functionalities of the market leading Freedom EVO® liquid handling platform • Alternative pipetting technology launched in Life Sciences Business 2012 to bet
Slide 22: Priorities 2013: Continue to Drive Components Business
Tecan Full Year Results 2012 / March 7th 2013 / p22 Priorities 2013: Continue to Drive Components Business • Tecan supplies laboratory instrument manufacturers with essential components such as pumps, valves and robotic modules • Tecan’s Cavro® brand is the market leader for these instrument buildin
Slide 23: Strategy and Vision
Tecan Full Year Results 2012 / March 7th 2013 / p23 Strategy and Vision • Refining strategy, sharpening prioritization, focus, execution planning Life Sciences Business and delivery • Evolving into a solutions business, serving broader range of applications with more recurring revenues • Growing int
Slide 24: 2013: Key Challenges and Positive Performance Drivers
Tecan Full Year Results 2012 / March 7th 2013 / p24 2013: Key Challenges and Positive Performance Drivers Positive Performance Key Challenges Drivers • Challenging economic • Continued strong growth in environment to continue China • Some European markets still • Significant sales growth in affected
Slide 25: Outlook
Tecan Full Year Results 2012 / March 7th 2013 / p25 Outlook Guidance for 2013 Sales Profitability Mid-single-digit sales growth in EBIT Margin to grow around 50 bps Based on average FX rates of: local currencies 1.21 EUR/CHF and 0.92 USD/CHF Medium-term targets for 2015 At current exchange rates: Sa
Slide 26: Summary and Conclusion
Tecan Full Year Results 2012 / March 7th 2013 / p26 Summary and Conclusion • Tecan is a recognized global leading provider of laboratory instruments and a top brand in the life sciences industry • Well positioned to capture multiple growth opportunities • CEO succession process completed, other key
Slide 27: Agenda
Tecan Full Year Results 2012 / March 7th 2013 / p27 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers
Slide 28: Next Events Contact
Tecan Full Year Results 2012 / March 7th 2013 / p28 Next Events 2013: April 17: Annual Shareholder Meeting August 14: Half Year Results 2013 Contact Martin Braendle Head of Corporate Communications & Investor Relations Phone: +41 (0) 44 922 84 30 [email protected] www.tecan.com
Slide 29: Safe Harbor Statement
Safe Harbor Statement All statements in this presentation not referring to historical facts are predictions of the future and constitute no guarantee whatsoever of future performances. They are subject to risks and uncertainties including, but not limited to, future global economic conditions, excha