Tecan Group Ag · SIX:TECN
Tecan — FY2017 Earnings Presentation
27 slides from Tecan's earnings presentation, Mar 14, 2018
Slide 1: Full Year Results 2017
Zurich, August 16 2017 Zurich, March 14 2018 Half Full Year 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 PRIORITIES AND OUTLOOK QUESTIONS AND ANSWERS 3
Slide 4: Financial Performance 2017
Financial Performance 2017 • With +8.0% in LC, another year of significant sales growth • Sales up by a total of around CHF 150 million or 37% over the last three years • Total recurring revenues now at 42% of sales • Strong growth in order entry (+11.8% in LC) • Significant EBITDA margin increase o
Slide 5: Operating Highlights 2017
Operating Highlights 2017 • Integration of US company SPEware (now Tecan SP) and European market launch of the Resolvex™ product line for sample preparation for mass spectrometry • Acquisition of Pulssar Technologies to expand the technology portfolio in Partnering Business; relocation of production
Slide 6: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS PRIORITIES AND OUTLOOK QUESTIONS AND ANSWERS 6
Slide 7: 2017 Order Entry and Sales Performance
2017 Order Entry and Sales Performance ORDER ENTRY FY 2017 ORDER ENTRY FY 2017 VS. FY 2016 580 564.1 • +12.1% in CHF and +11.8% in LC 540 • Organic +8.5% in LC CHF (mio) 503.2 • Both business segments contributed with double- 500 digit growth rates • Order backlog with double-digit % increase 460 42
Slide 8: 2017 Segment Sales
2017 Segment Sales LIFE SCIENCES BUSINESS: SALES (IN CHF MILLIONS) 2016 FY • Sales +9.5% in CHF and +9.0% in LC 320.0 306.9 300.0 2017 • Organic sales growth of 3.6% in LC 280.2 280.0 • Growth driven by Tecan SP, the service business and 260.0 consumables 241.5 240.0 226.0 220.0 H2 • Sales up by 3.8
Slide 9: FY 2017 Regional Sales Development
FY 2017 Regional Sales Development YoY % YoY % +12.4% in LC +1.5% in LC +12.6% in CHF +0.0% in CHF EUROPE: Others • Growth in Life Sciences Business, however overall negative trend primarily due to positive one-time 3% effect in H1 2016 incurred by Partnering Business • Sales increased by 6.2% in LC
Slide 10: FY 2017 Gross Profit
FY 2017 Gross Profit GROSS PROFIT (% = % OF SALES) 270 265.6 GROSS PROFIT INCREASED TO CHF 265.6M • CHF 26.2m or 11.0% above 2016 250 239.4 GROSS PROFIT MARGIN UP BY 110 BPS CHF (mio) 230 • Main effects contributing: • (+) Material cost savings 47.3% 48.4% 210 • (+) Impact from acquisition • (-) Pro
Slide 11: FY 2017 Cost Structure
FY 2017 Cost Structure OPERATING EXPENSES (% = % OF SALES) OPERATING EXPENSES GREW IN LINE WITH 186.8m SALES 172.5m (34.0%) 180 (34.1%) • All operating expenses include costs from 160 acquired businesses 84.2 140 76.5 (15.3%) (15.1%) 120 • Sales & Marketing increased slightly more than CHF (mio) sal
Slide 12: FY 2017 EBIT and EBITDA
FY 2017 EBIT and EBITDA EBIT AND EBITDA (IN CHF MILLIONS) EBIT INCREASED TO CHF 80.5M 110 105.3 • 12.3m or 18.1% above 2016 100 • Including all costs from acquired businesses, 89.0 90 higher PPA and MSD CHF amount of 80.5 2016 integration costs 80 2017 70 68.1 EBITDA GREW TO CHF 105.3M 60 • CHF 16.3
Slide 13: FY 2017 Segment Profitability
FY 2017 Segment Profitability EBIT (IN CHF MILLIONS) 60 LIFE SCIENCES BUSINESS: 50.5 50 45.7 • EBIT margin increased to 15.9% 42.6 40 • Factors contributing include: 33.8 2016 30 • (+) Gross profit 2017 20 • (+) Volume effect • (+) Efficiency gains 10 • (-) Integration-related costs (SPEware) 0 Life
Slide 14: FY 2017 Net Profit
FY 2017 Net Profit NET PROFIT 70 66.5 NET PROFIT GREW FASTER THAN SALES 65 • CHF 12.0m or 22.0% above 2016 60 • Highest level to date 57.1 54.5 NET PROFIT MARGIN +130 BPS TO 12.1% 55 CHF (mio) 50 EBIT INCREASE OF CHF 12.3M 48.8% 49.5% 45.7 45 BELOW EBIT LINE 40.2 • (+) Better financial result 40 35
Slide 15: FY 2017 Basic Earnings per Share
FY 2017 Basic Earnings per Share BASIC EARNINGS PER SHARE EARNINGS PER SHARE DEVELOPED ABOUT 6 IN LINE WITH NET PROFIT TO CHF 5.73 5.73 5 5.05 AVERAGE NUMBER OF SHARES CHF / share 4.74 OUTSTANDING: 11.6M (2016: 11.5M) 4.16 4 48.8% 49.5% 3.63 INCREASE IN THE DIVIDEND FROM CHF 1.75 TO CHF 2.00 PER SHA
Slide 16: FY 2017 Cash Flow
FY 2017 Cash Flow +99.4 -22.4 309.4 -14.4 246.7 Cash at end of From Operations From Investments From Financing1 Cash at end 2016 of 2017 CASH FLOW FROM OPERATIONS OF CHF 99.4M (2016: CHF 118.8M) • Cash conversion of 18.1% of sales (2016 included reimbursement of development costs by an OEM partner)
Slide 17: FY 2017 Key Figures
FY 2017 Key Figures 2016 2017 Δ IN % Order Entry (in CHF mio) 503.2 564.1 +12.1% Sales (in CHF mio) 506.2 548.4 +8.3% Sales in local currencies (in CHF mio) 507.8 548.4 +8.0% Gross Profit (in CHF mio) 239.4 265.6 +11.0% in % of sales 47.3% 48.4% R&D (in CHF mio) 47.1 51.1 +8.4% in % of sales 9.3% 9.
Slide 18: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS PRIORITIES AND OUTLOOK QUESTIONS AND ANSWERS 18
Slide 19: Company-wide Priorities 2017 and 2018
Company-wide Priorities 2017 and 2018 CONTINUATION OF STRATEGIC PRIORITIES • Realized a MSD million CHF amount of net material cost savings in 2017; same target for 2018 Operational efficiency • Continued focus on operational efficiency and high level of innovation output • Support further increase
Slide 20: Tecan's newest liquid handler coming soon to a regulated lab near you
Tecan’s newest liquid handler coming soon to a regulated lab near you Not available in all markets 20
Slide 21: Fluent Gx brings advantages of Fluent to regulated environments
Fluent Gx brings advantages of Fluent to regulated environments * Tecan will register Fluent Gx with the FDA as a Class 1 Medical Device Fluent Gx will offer the tools GMP, GLP, QC labs, and clinical diagnostic facilities need, such as: • Permissions • Method Approval • Electronic Signatures • Sampl
Slide 22: Successful Integration of Acquired Businesses
Successful Integration of Acquired Businesses COMMITTED TO EXECUTE FURTHER DEALS EXPANDING THE PORTFOLIO OF SAMPLE PREPARATION SOLUTIONS LIFE SCIENCES BUSINESS PARTNERING BUSINESS HIGH PRECISION PUMPS FOR MASS SPECTROMETRY Complimentary pump technologies to meet Leveraging Tecan’s leading position i
Slide 23: Partner of Choice to the IVD Industry
Partner of Choice to the IVD Industry 30+ ACTIVE INSTRUMENT ACCOUNTS, MULTIPLE NEW DEVELOPMENTS IN PROGRESS IN REGULAR INSTRUMENTS UNDER INSTRUMENT SUPPLY PHASE RAMPING UP DEVELOPMENT PIPELINE 35+ different instruments supplied 5+ projects under 25+ concrete concepts development in discussions • Fro
Slide 24: Outlook for 2018
Outlook for 2018 SALES DEVELOPMENT OPERATING PROFIT (EBITDA) Growth in EBITDA 600 MSD range margin to 575 in LC 120 exceed 550 548.4 1 again 110 105.3 19% CHF (mio) 525 506.2 100 500 CHF (mio) 90 89.0 475 83.4 450 440.3 80 425 399.5 70 65.1 67.5 400 388.3 375 60 16.8% 16.9% 18.9% 17.6% 19.2% 350 50
Slide 25: 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 April 17: Annual Shareholder Meeting August 16: Half Year Results 2018 25
Slide 26: Slide 26
Slide 27: 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