Tecan Group Ag · SIX:TECN
Tecan — H1 2014 Earnings Presentation
27 slides from Tecan's earnings presentation, Aug 13, 2014
Slide 1: Half Year Results 2014
Zürich, August 13th 2014 Half Year Results 2014 Analyst & Media Conference Call
Slide 2: Speakers
Speakers Dr. David Martyr, CEO Dr. Rudolf Eugster, CFO
Slide 3: Agenda
Tecan Half Year Results 2014 / August 13th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers 3
Slide 4: Financial Performance H1 2014
Tecan Half Year Results 2014 / August 13th 2014 Financial Performance H1 2014 • Mixed financial results in the first half of 2014 • Strong recovery in Life Sciences Business with good start in established markets • Disappointing sales in Partnering Business, mostly due to delays in order placement f
Slide 5: Operating Highlights H1 2014
Tecan Half Year Results 2014 / August 13th 2014 Operating Highlights H1 2014 • Important progress in our development programs • Particular highlight: launch of the Fluent™ laboratory automation family, Tecan’s next generation liquid handling platform • Sales and delivery ramp-up of Dako Omnis (P16)
Slide 6: Agenda
Tecan Half Year Results 2014 / August 13th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers 6
Slide 7: H1 2014 Order Entry and Sales Performance
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Order Entry and Sales Performance Order Entry 200 196.6 180 189.2 • Order Entry H1 2014 vs. H1 2013 160 • +6.8% in local currencies 140 • +3.9% in Swiss Francs CHF (mio) 120 • Order Backlog with double-digit 100 increase 2013 2014 Sales 200 • S
Slide 8: H1 2014 Segment Sales
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Segment Sales Sales (in CHF millions) 110.0 • Life Sciences Business: 100.0 97.6 100.9 • Sales up by 7.2% in local currencies and 3.4% in CHF 90.0 84.2 • Strong recovery in Europe and North 2013 80.0 America, markets most affected by austerity
Slide 9: H1 2014 Regional Sales Development
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Regional Sales Development YoY % • Europe: Life Sciences Business +4.4% in LC recovered strongly, growing with a YoY % YoY % double-digit rate; Partnering Business +3.1% in CHF +0.5% in LC -4.4% in LC declined due to delays in orders from -6.7%
Slide 10: H1 2014 Gross Profit
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Gross Profit Gross Profit (in CHF millions) 100 90 88.6 87.3 • Gross profit amounted to CHF 87.3m • CHF 1.3m or 1.5% below H1 2013 80 70 • Gross profit margin up by 200 bps 60 • Material cost savings, less non-standard 2013 2014 cost of sales a
Slide 11: H1 2014 Cost Structure
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Cost Structure Operating Expenses (% = as a % of sales) • Costs decreased by CHF 0.5m (-0.8%) • Sales & Marketing up by 5.6% • Investments in sales organization 80 65.8m 65.3m (mainly China and US), marketing and product (36.2%) (37.9%) managem
Slide 12: H1 2014 EBIT
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 EBIT EBIT (in CHF millions) 24 23.1 • EBIT reached CHF 22.3m 22.3 22 20 • CHF 0.8m or 3.5% below H1 2013 18 16 14 • EBIT margin at 13.0% 12 • 30 basis points higher 10 • Main effects impacting the EBIT margin: 2013 2014 (+) GP margin 200 bps be
Slide 13: H1 2014 Segment Profitability
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Segment Profitability EBIT (in CHF millions) 30.0 • Life Sciences Business: 25.0 25.0 • EBIT increased to CHF 14.8m • EBIT margin grew to 14.0% 20.0 14.8 2013 • Significant positive volume effect 15.0 11.3 2014 • Reduced R&D expenses, but negat
Slide 14: H1 2014 Net Profit
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Net Profit Net Profit (in CHF millions) 20 18 18.6 • Net profit of CHF 18.6m 16.5 16 • CHF 2.1m or 12.8% above H1 2013 14 • Positive effects below EBIT line: 12 improved financial result and lower tax rate 10 2013 2014 • Net profit margin reach
Slide 15: H1 2014 Basic Earnings per Share
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Basic Earnings per Share Basic Earnings per Share • Earnings per share increased by 11.3% to CHF 1.68 2 1.68 1.5 1.51 • Number of shares outstanding: 11.1m (June 30, 2013: 11.0m) CHF / share 1 0.5 0 2013 2014 15
Slide 16: H1 2014 Cash Flow
Tecan Half Year Results 2014 / August 13th 2014 H1 2014 Cash Flow -12.7 150.4 -14.8 136.9 28.9 -14.9 Cash at From Operations, Prefinancing of From From Cash at end of Dec. 2013 excl. Prefinancing OEM development Investments Financing 1 end of June 2014 • Cash flow from operations of CHF 16.2m (H1 20
Slide 17: H1 2014 Key Figures
Tecan Half Year Results 2014 / August 13th 2014 H1 2013 Key Figures CHF m 2013 2014 Δ 13/14 Order Entry 189.2 196.6 3.9% Sales 181.8 172.0 -5.4% Gross Profit 88.6 87.3 -1.5% in % of sales 48.8% 50.8% +200 bps R&D 21.3 17.2 -19.3% in % of sales 11.7% 10.0% -170 bps OPEX 65.8 65.3 -0.9% in % of sales
Slide 18: Agenda
Tecan Half Year Results 2014 / August 13th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers 18
Slide 19: Priorities for 2014
Tecan Half Year Results 2014 / August 13th 2014 Priorities for 2014 Focus on driving growth in Life Sciences Business, especially in Europe and North America Supporting Partnering Business customers with delivery ramp-up (Dako Omnis and Ortho Vision) Continue to focus on building out China (Life Sci
Slide 20: Update: Driving Growth in the Life Sciences Business
Tecan Half Year Results 2014 / August 13th 2014 Update: Driving Growth in the Life Sciences Business • Launch of the Fluent™ Laboratory Automation Solution • Tecan’s next generation liquid handling platform family • Unique concept built around application-specific needs of laboratories • First Fluen
Slide 21: Update: Driving Appropriate, Thoughtful M&A
Tecan Half Year Results 2014 / August 13th 2014 Update: Driving Appropriate, Thoughtful M&A • Tecan acquired IBL International, based in Hamburg, Germany • A leading immunoassay company for specialty diagnostics • Subsegment of the immunoassay market not in competition with typical Partnering Busine
Slide 22: Immunodiagnostic Expert Meets Automation Specialist
Tecan Half Year Results 2014 / August 13th 2014 Immunodiagnostic Expert Meets Automation Specialist A perfect strategic fit! • Immunodiagnostic expert • Automation leader • Low volume and high mix • Comprehensive and versatile Immunoassay reagents automation and detection (reader) portfolio • Key pr
Slide 23: Acquisition of IBL International
Tecan Half Year Results 2014 / August 13th 2014 Acquisition of IBL International • Transaction successfully closed on July 31, 2014 • Total consideration of EUR 29.0m (CHF 35.2m); cash and debt free • Transaction fully paid in cash • Valuation representing a multiple of 1.8 times fiscal year 2013 sa
Slide 24: Outlook for Financial Year 2014
Tecan Half Year Results 2014 / August 13th 2014 Outlook for Financial Year 2014 (organic) Acquisition of (from Aug 1st, 2014) Sales Sales At least mid single-digit sales Mid single-digit million CHF growth in local currencies contribution Profitability Profitability Further increase of EBIT Margin b
Slide 25: Agenda
Tecan Half Year Results 2014 / August 13th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities & Outlook Dr. David Martyr • Questions & Answers 25
Slide 26: Next Events Contact
Tecan Half Year Results 2014 / August 13th 2014 Next Events 2014: September 18: Capital Markets Day 2015: March 18: Financial Results 2014 April 16: Annual Shareholder Meeting Contact Martin Braendle Head of Corporate Communications & Investor Relations Phone: +41 (0) 44 922 84 30 [email protected]
Slide 27: 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