Tecan Group Ag · SIX:TECN
Tecan — H1 2017 Earnings Presentation
26 slides from Tecan's earnings presentation, Aug 16, 2017
Slide 1: Half Year Results 2017
Zurich, August 16 2017 Zurich, August 16 2017 Half HalfYear Year Results Results2017 2017 ANALYST & MEDIA CONFERENCE CALL ANALYST & MEDIA CONFERENCE CALL
Slide 2: Speakers
Speakers Dr. David Martyr, CEO Dr. Rudolf Eugster, CFO 2
Slide 3: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS UPDATE AND OUTLOOK QUESTIONS AND ANSWERS 3
Slide 4: Financial Performance H1 2017
Financial Performance H1 2017 • Significant increase in order entry; +16.7% and +12.5% organic • Substantial sales growth of +18.2% in Life Sciences Business (+9.5% organic) • Strong growth in components business, services and consumables as part of Partnering Business; double-digit increase in orde
Slide 5: Operating Highlights H1 2017
Operating Highlights H1 2017 • Considerable progress with integration of acquired businesses • Preparing joint marketing of SPEware’s (now Tecan SP) mass spectrometry sample preparation solutions; European launch of Resolvex™ products scheduled for H2 2017 • Preparations underway to relocate product
Slide 6: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS UPDATE AND OUTLOOK QUESTIONS AND ANSWERS 6
Slide 7: Order Entry and Sales Performance
H1 2017 Order Entry and Sales Performance ORDER ENTRY H1 2017 300 291.2 ORDER ENTRY H1 2017 VS. H1 2016 280 • +16.2% in CHF, +16.7% in local currencies (LC) • CHF (mio) Both business segments contributed with 260 250.6 double-digit growth rates 240 • Particularly strong growth in Partnering Business
Slide 8: Segment Sales
H1 2017 Segment Sales SALES (IN CHF MILLIONS) 138.2 2016 140.0 2017 130.0 120.0 117.7 117.6 115.1 LIFE SCIENCES BUSINESS: 110.0 • Sales increased by 17.4% in CHF and 18.2% in LC 100.0 • Organic sales growth of +9.5% in LC 90.0 • Contributions from a broad range of instrument 80.0 platforms, the serv
Slide 9: Regional Sales Development
H1 2017 Regional Sales Development YoY % YoY % +16.1% in LC +18.7% in LC EUROPE: +15.0% in CHF +17.1% in CHF • Life Sciences Business with strong growth Others • Partnering Business with high comparative base due 3% to positive one-time effect in prior year NORTH AMERICA: Asia • Strong growth in Lif
Slide 10: Gross Profit
H1 2017 Gross Profit GROSS PROFIT (% = % OF SALES) GROSS PROFIT INCREASED TO CHF 119.9M 119.9 • CHF 7.6m or 6.7% above H1 2016 120 GROSS PROFIT MARGIN DOWN BY 40BPS 112.3 • Main effects contributing: 110 • (-) Instrument product mix CHF (mio) • (-) Product mix with higher share of services & consuma
Slide 11: Cost Structure
H1 2017 Cost Structure OPERATING EXPENSES (% = % OF SALES) OPERATING EXPENSES GREW LESS THAN SALES 100 89.8m 84.9m (35.4%) (36.1%) • H1 2017 including costs from acquired SPEware 80 and Pulssar Technologies 40.4 38.2 (16.2%) (15.9%) • Sales & Marketing increased less than sales CHF (mio) 60 despite
Slide 12: EBIT and EBITDA
H1 2017 EBIT and EBITDA EBIT AND EBITDA (IN CHF MILLIONS) EBIT INCREASED TO CHF 29.5M 45 • CHF 1.9m or 6.6% above H1 2016 41.3 EBIT 40 37.9 • Including all costs from acquired businesses and integration costs (slightly higher than H1 2016) 35 EBITDA 29.6 30 27.7 EBITDA GREW TO CHF 41.3M 25 • CHF 3.4
Slide 13: Segment Profitability
H1 2017 Segment Profitability EBIT (IN CHF MILLIONS) 25 LIFE SCIENCES BUSINESS: 20.9 19.0 • EBIT margin increased to 12.4% 20 17.8 • Factors contributing include: 15 12.2 2016 • (+) Price effect 2017 10 • (+) Volume effect 5 • (+) Efficiency gains 0 Life Sciences Partnering Business Business PARTNER
Slide 14: Net Profit
H1 2017 Net Profit NET PROFIT (% = % OF SALES) 30 25.7 NET PROFIT GREW FASTER THAN SALES 23.5 • CHF 2.2m or 9.6% above H1 2016 20 EBIT INCREASE OF CHF 1.9M CHF (mio) 48.8% 49.5% BELOW EBIT LINE 10.0% 10.1% 10 • (+) Better financial result due to hedging profit • (+) Lower tax rate of 17.3% (H1 2016:
Slide 15: Basic Earnings per Share
H1 2017 Basic Earnings per Share BASIC EARNINGS PER SHARE 2.40 2.22 EARNINGS PER SHARE DEVELOPED ABOUT 2.20 IN LINE WITH NET PROFIT TO CHF 2.22 2.04 2.00 AVERAGE NUMBER OF SHARES CHF / share OUTSTANDING: 11.6M (H1 2016: 11.5M) 1.80 48.8% 49.5% 1.60 48.8% 49.5% 1.40 1.20 1.00 2016 2017 15
Slide 16: Cash Flow
H1 2017 Cash Flow +31.7 246.7 -12.4 247.9 -18.2 Cash at end of From Operations From Investments From Financing1 Cash at end 2016 of June 2017 CASH FLOW FROM OPERATIONS OF CHF 31.7M (H1 2016: CHF 64.9M) • Cash conversion of 12.5% of sales, prior-year period included a reimbursement of development cos
Slide 17: Key Figures
H1 2017 Key Figures 2016 2017 Δ IN % Order Entry (in CHF mio) 250.6 291.2 +16.2% Sales (in CHF mio) 235.3 253.3 +7.7% Sales in local currencies (in CHF mio) 234.5 253.3 +8.0% Gross Profit (in CHF mio) 112.3 119.9 +6.7% in % of sales 47.7% 47.3% R&D (in CHF mio) 22.9 23.5 +2.8% in % of sales 9.7% 9.3
Slide 18: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS UPDATE AND OUTLOOK QUESTIONS AND ANSWERS 18
Slide 19: Total Sample Prep Solutions for Mass Spectrometry
LIFE SCIENCES BUSINESS Total Sample Prep Solutions for Mass Spectrometry • Expanding mass spectrometry sample preparation offering • Combining Tecan’s leading position in lab automation and offering from acquired SPEware (now Tecan SP) • Offering smart consumables and dedicated instruments under new
Slide 20: Additional Instruments Ramping Up in 2017
Additional Instruments Ramping Up in 2017 PARTNERING BUSINESS PROVIDING BASIS FOR CONTINUED GROWTH Sgx ClarityTM System Inova QUANTA Lyser® VIRCLIA® PLUS 3000 High sensitivity next gen immunodiagnostics IFA/ELISA for autoimmunity Chemoluminescence IA for infectious diseases Natch S MultiMACS®X Top 1
Slide 21: New Platform Development with DiaSorin
New Platform Development with DiaSorin PARTNERING BUSINESS • DiaSorin will make use of Tecan’s Fluent® Laboratory Automation Solution as its Nucleic Acid extraction platform • To be used in combination with the DiaSorin Liaison® MDX PCR system • Complete sample to result system for MDx • To be optim
Slide 22: New Platform Development with Sysmex
New Platform Development with Sysmex PARTNERING BUSINESS • Tecan is collaborating with Sysmex, a top 10 in-vitro diagnostic (IVD) company and a world leader in clinical laboratory automation solutions • Development is based on Tecan’s new Cavro® Omni Flex robotic platform with customized software •
Slide 23: Outlook for 2017 Confirmed
Outlook for 2017 Confirmed SALES DEVELOPMENT OPERATING PROFIT (EBITDA) Sales to increase by 550 more than 6% in LC 110.0 EBITDA margin to 525 CHF (mio) 506.2 expand to over 18%1 500 100.0 89.0 CHF (mio) 475 90.0 440.3 83.4 450 80.0 425 399.5 67.5 391.1 388.3 70.0 63.0 65.1 400 375 60.0 350 50.0 2012
Slide 24: Q&A
Q&A IR IPAD APP CONTACT News, financial reports, Martin Braendle presentations, Vice President, Communications & IR videos and more Phone: +41 (0) 44 922 84 30 [email protected] NEXT EVENT 2018 www.tecan.com March 14: Full Year Results 2017 April 17: Annual Shareholder Meeting 24
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Slide 26: Tecan – Who we are
Tecan – Who we are Tecan (www.tecan.com) is a leading global provider of laboratory instruments and solutions in biopharmaceuticals, forensics and clinical diagnostics. The company specializes in the development, production and distribution of automated workflow solutions for laboratories in the lif