Tecan Group Ag · SIX:TECN
Tecan — Investor Day (September 2014)
120 slides from Tecan's investor day presentation, Sep 18, 2014
Slide 1: Capital Markets Day 2014
Tecan Group Capital Markets Day 2014 September 18, 2014
Slide 2: Agenda
Capital Markets Day 2014 Agenda TOPIC PRESENTER TIME Refined Corporate Strategy and Priorities 2014 David Martyr 8:30 Driving Growth in the Life Sciences Business Stefan Traeger Bronwen Forster The New Fluent Laboratory Automation Solution Hal Wehrenberg Continue to Expand Tecan’s China Business Jon
Slide 3: Refined Corporate Strategy and Priorities 2014
Capital Markets Day 2014 Refined Corporate Strategy and Priorities 2014 Dr. David Martyr, CEO September 18, 2014
Slide 4: A Global Leader in Laboratory Automation
Capital Markets Day 2014 A Global Leader in Laboratory Automation • Tecan’s solutions accelerate, automate and enhance the processes in state-of-the-art diagnostics and life sciences labs • Market leader for liquid handling platforms and a leading position for microplate readers and washers • Offeri
Slide 5: Tecan's Products, Business Structure and Markets
Capital Markets Day 2014 Tecan’s Products, Business Structure and Markets Life Sciences Business Partnering Business • Focused on all end-user activities • Focused on all OEM activities • Products marketed under the Tecan • Products sold by partners under brand through own sales & service their own
Slide 6: Tecan is a Global Partner
Capital Markets Day 2014 Tecan is a Global Partner • R&D and WeManufacturing are a globalSites company, headquartered in Switzerland, but very local at the same time – close to our customers San Jose, US Mainz, DE Männedorf/Zürich, CH Grödig/Salzburg, AT Hamburg, DE 6
Slide 7: Enhancing Key Workflows in Laboratories
Capital Markets Day 2014 Enhancing Key Workflows in Laboratories Process/work flow Data flow Sample and Reagent Containers, Sample Pipetting, Reagents Mixing, Microtiter plate based Washing, Detection, Disposable Pipette Tips PCR Incubating, Plate Logistics, Immunoassays Optics, Data Reduction, gDNA
Slide 8: Revenue Profile Provides a Solid Basis
Capital Markets Day 2014 Revenue Profile Provides a Solid Basis Strong drivers IBL will further increase Growing direct presence in Diagnostics share of recurring revenues in Emerging markets Customer Segments Products Geographies 3% 12% 12% 13% 9% 61% 22% 66% 41% 18% 43% Diagnostics Pharma Instrume
Slide 9: Basis for Corporate Strategy: Market Structure
Capital Markets Day 2014 Basis for Corporate Strategy: Market Structure Life Science Research In-Vitro Diagnostics CAGR Growth +3-5% +3-5% >40 BN USD >40 BN USD Strategic pillars Reagents & Consumables Reagents & Consumables 1 Scale & 3 capability 2 Build additional pillars and 2 complete Instrument
Slide 10: Basis for Corporate Strategy: Macro Environment
Capital Markets Day 2014 Basis for Corporate Strategy: Macro Environment Healthcare spending Government R&D expenditure related to Life Science Tool (USD BN – selection) Health spending Private spending on 67 healthcare (% of (% of GDP) health spending) China to drive 0% 5% 10% 15% 20% 0% 20% 40% 60
Slide 11: Refined Corporate Strategy - Overview
Capital Markets Day 2014 Refined Corporate Strategy - Overview Life Sciences Business Partnering Business Be the Go-to Partner for Be the Partner of Choice for automation and analytical needs automation systems in the in the life science research lab In Vitro Diagnostic industry Provide automation a
Slide 12: Refined Corporate Strategy
Capital Markets Day 2014 Refined Corporate Strategy Life Sciences Business Partnering Business Be the Go-to Partner for automation and analytical Be the Partner of Choice for automation systems in needs in the life science research lab the In Vitro Diagnostic industry • Execute on commercialization
Slide 13: Corporate Strategy Mirrored in Priorities for 2014
Capital Markets Day 2014 Corporate Strategy Mirrored in 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 (
Slide 14: Driving Growth in the Life Sciences Business
Capital Markets Day 2014 Driving Growth in the Life Sciences Business Dr. Stefan Traeger, Head Life Sciences Business September 18, 2014
Slide 15: Recovery of Life Sciences Business
Capital Markets Day 2014 Recovery of Life Sciences Business • Tecan’s Life Sciences Business reported strong H1 2014 results • Sales were up by 7.2% in local currencies • Orders with double-digit increase • Substantial increase in profitability • Underlying factors for sustained recovery • Improved
Slide 16: Improved Economic Environment
Capital Markets Day 2014 Improved Economic Environment • Improved economic and funding environment in Europe and North America • USA: first year of NIH budget growth after three years of decline • Europe: normalized environment for capital spending • Temporary disruption in China due to structural r
Slide 17: Internal Improvements Implemented in 2014
Capital Markets Day 2014 Internal Improvements Implemented in 2014 • Organisational Development • Customer-oriented SBU’s established • More customer face-time by re-balancing resources (EU, U.S.) or expanding sales headcount (China) • Key regional hirings with extensive industry- specific experienc
Slide 18: New Customer-Oriented Organization
Capital Markets Day 2014 New Customer-Oriented Organization CDx Life Sciences & Applied Clinical Diagnostics Pharma & Biotech Academic Research Applied Markets Customers Hospitals, blood- Pharma, biotech and Academic research Labs in applied banks and CDx labs CRO labs labs markets Global Sales and
Slide 19: Modernized Sales Process and New Sales Tools
Capital Markets Day 2014 Modernized Sales Process and New Sales Tools • Standard KPI scorecard implemented at division level and broken down into the major regions • Weekly pipeline reviews implemented in the US, EU and in China • Switched to a new SAP-based CRM system; rolled out early 2014 • Mobil
Slide 20: New Products With Increased Application Focus
Capital Markets Day 2014 New Products With Increased Application Focus Shaping the lab of the future - maximizing the most valuable resource that any lab has: The imagination of it’s scientists and lab workers • By improving productivity • Enable Automating complete end to end workflows • Provides u
Slide 21: Fluent, and Much More… A Cadence of New Products
Capital Markets Day 2014 Fluent, and Much More… A Cadence of New Products Productivity Convenience Flexibility NGS Workstation EVO-based 3 x Illumina approved applications & Touch Tools interface Sample prep for mass spectrometry Positive pressure device, Touch Tools interface PCR add-on with Touch
Slide 22: Acquisition of IBL International
Capital Markets Day 2014 Acquisition of IBL International Supporting Tecan’s evolution into a solutions business • Immunodiagnostic expert • Automation leader • Low volume and high mix • Comprehensive and versatile Immunoassay reagents automation and detection (reader) portfolio • Key products in En
Slide 23: Fluent Laboratory Automation Solution
Capital Markets Day 2014 Fluent Laboratory Automation Solution Bronwen Forster, Senior Product Manager September 18, 2014
Slide 24: Tecan's New Solution-Oriented Innovation Process
Capital Markets Day 2014 Tecan’s New Solution-Oriented Innovation Process Old approach 2014 2015 2016 Apps Apps Apps Apps Apps System Software System Software Air LiHa L-LiHa MCA`s Washer Shaker Reader Robotic Platform New approach 2014 2015 2016 New Fluent Lab Automation Solution Platform Cell-base
Slide 25: Fluent – The Next Generation of Liquid Handling
Capital Markets Day 2014 Fluent – The Next Generation of Liquid Handling State of the art automation 25
Slide 26: The Fluent Family
Capital Markets Day 2014 The Fluent Family 26
Slide 27: Fluent Keeps it Simple and Smart
Capital Markets Day 2014 Fluent Keeps it Simple and Smart • User-focused daily operation is tailored to individual user’s skill set, application needs & favorite selections • Integrated Touch screen interface, eases instrument setup, reduces errors, increases success • Teach-free standard carriers a
Slide 28: Fluent Increases Productivity per Meter2
Capital Markets Day 2014 Fluent Increases Productivity per Meter2 • Outstanding deck capacity maintaining a compact foot print • Compact bench-top version transforms to free-standing with cabinet to use all vertical space • Optional, integrated HEPA hood provides clean air environment without expand
Slide 29: Fluent Offers More Throughput
Capital Markets Day 2014 Fluent Offers More Throughput • Patented motion control and Path Finder™ move optimization accelerate arm movements • Fast and parallel processing by independent arms decrease processing times 29
Slide 30: Fluent Offers Enhanced Confidence
Capital Markets Day 2014 Fluent Offers Enhanced Confidence • Dedicated daily run environment for users • Greater positional precision for high density plate formats (e.g. 384 & 1536 well plates) • High Definition pipetting system delivers outstanding precision, accuracy and volume range • Adaptive S
Slide 31: Fluent: High Capacity in a Compact Footprint
Capital Markets Day 2014 Fluent: High Capacity in a Compact Footprint • Fluent 480 has 50% more capacity than Freedom EVO 100, for less bench space • All access to electronics is from inside the instrument 31
Slide 32: Tecan Laboratory Automation Family
Capital Markets Day 2014 Tecan Laboratory Automation Family Fluent 1080 Freedom EVO 200 Freedom EVO 150 Fluent 780 Flexibility Freedom EVO 100 Fluent 480 Freedom EVO 75 Throughput / Capacity 32 June 2014 / p32 / Introducing Tecan
Slide 33: Fluent Control software screenshot
Capital Markets Day 2014 v_| i FLUENTCON! ROL Ble Database Edit fun Window Stings Help Contatbar Al (show hides) = Rich User Promot FOAL Fon, Sour FOAL 0p) Water Fr 95 well iatfoo2} AL Hi mio Paminatons Last Login 2016.06.12 a Key Operator @TECAN. "i operator STi) [inmate 33
Slide 34: The Operator Interface
Capital Markets Day 2014 The Operator Interface • Standard with all installations • Everything an operator needs for daily work is on the touch screen Execute System Care or Prompts, input fields, and Optionally display photos Methods messages are all easy or movies to help guide an touch interactio
Slide 35: Fluent Laboratory Automation Solution - Video
Capital Markets Day 2014 Fluent Laboratory Automation Solution - Video Hal Wehrenberg, Product Manager Software 35
Slide 36: For Cell-based and Biochemical Assays
Fluent Laboratory Automation Solution For Cell-based and Biochemical Assays Bronwen Forster, Senior Product Manager
Slide 37: Tecan Automation for Cell Biology
Capital Markets Day 2014 Tecan Automation for Cell Biology • Tecan provides cell biology solutions for many years • Offer solutions for many aspects of the workflow • With Fluent, optimized automation of cell-based & biochemical assays • Provided a series of application notes at time of introduction
Slide 38: Customer Benefits of Application Notes
Capital Markets Day 2014 Customer Benefits of Application Notes • Demonstrates operation in typical usage and lab environments • ‘Real‘ customer scenarios • Demonstrates real performance • Analytical data generated by workflow/assay operated on a Fluent system • Provides confidence with real scienti
Slide 39: Cell-based and Biochemical Applications with Key Partners
Capital Markets Day 2014 Cell-based and Biochemical Applications with Key Partners Partner Assay type Assay Fluent highlights Epigenetics assay Complex HT Cell-based screening for inhibitors of DNA methylation screening GPCR assay e.g. used for charaterization of Cell-based Versatility compounds for
Slide 40: Results Provide Customer Confidence
Capital Markets Day 2014 Results Provide Customer Confidence • z’ key statistical measure of assay performance (reproducibility) • EC50 values similar to benchmark • Same experiment on multiple plates – robust performance shown via heat map • Excellent results obtained • ‘Real’ evidence of ability t
Slide 41: Fluent is Different
Capital Markets Day 2014 Fluent is Different • Fluent accommodates trends in cell-based & biochemical assays • Miniaturization • Higher throughput • Need to reduce complexity • Demand for high quality • Tecan delivers tested applications with partners • Application examples demonstrate the range of
Slide 42: Fluent at recent scientific meetings and exhibitions
Capital Markets Day 2014 Fluent at recent scientific meetings and exhibitions • ELRIG Drug Discovery Meeting, 2-3 September 2014, Manchester, UK • 1347 delegates attended ELRIG • First public showing of Fluent • Tremendous interest – ‘innovative’ was the word on the lips of many delegates… • “the fi
Slide 43: Live product demo after lunch
Capital Markets Day 2014 Live product demo after lunch 43
Slide 44: Continue to Expand Tecan's China Business
Capital Markets Day 2014 Continue to Expand Tecan’s China Business Jonathan Qu, Head of Market Unit Commercial Operations, AP September 18, 2014
Slide 45: Expanding Tecan's China Business
Capital Markets Day 2014 Expanding Tecan’s China Business • Tecan has a presence in China since Sales Development in China 2004 and an own legal entity since 2008 >40m • The business has gained significant CAGR >25% momentum in recent years >25m • Sales expected to continue to grow with CHF (mio) >1
Slide 46: Strong Fundamental Growth Drivers
Capital Markets Day 2014 Strong Fundamental Growth Drivers Healthcare spending Government R&D expenditure related to Life Science Tool (USD BN – selection) Health spending Private spending on 67 China to invest healthcare (% of (% of GDP) significantly in health spending) 0% 5% 10% 15% 20% 0% 20% 40
Slide 47: Temporary Disruption in Spending Patterns
Capital Markets Day 2014 Temporary Disruption in Spending Patterns • China has seen delays in government tenders and in academic spending in H1 2014 - as widely noted in the industry • Following various publicized bribery allegations in the pharmaceutical industry, the new Chinese government has imp
Slide 48: Continuing to Grow the Tecan China Organization
Capital Markets Day 2014 Continuing to Grow the Tecan China Organization • Strengthened leadership team • Continuing to add “feet on the street” • China organization growing from 40 employees in 2012 to now over 70 48
Slide 49: Increasing the Number of Regional Offices in China
Capital Markets Day 2014 Increasing the Number of Regional Offices in China • In 2014, Tecan opened a new regional office in Guangzhou • Regional offices provide local basis for sales representatives, application specialists and service engineers • It is planned to open additional offices in 2015 an
Slide 50: New Sales Organization for Life Sciences Business
Capital Markets Day 2014 New Sales Organization for Life Sciences Business Dedicated sales teams CDx Academia Biopharma Academic Research Clinical Diagnostics Pharma & Biotech Government Labs Reseach Lab in Hospital Hospitals, Academic Pharma, Biotech Labs in applied blood-banks and research labs an
Slide 51: Increased Coverage of Different End Markets
Capital Markets Day 2014 Increased Coverage of Different End Markets • Substantially increased direct market coverage, support and dealer coverage • About doubled number of sales representatives to directly interact with key end customers and develop and support regional dealers • Increased number o
Slide 52: New Opportunities in Next-Generation Sequencing
Capital Markets Day 2014 New Opportunities in Next-Generation Sequencing • Next-generation sequencing (NGS) is an important technology in China as well • A significant portion of sequencers are being purchased to provide NGS services • Tests include prenatal screening, fetal aneuploidies, cancer mut
Slide 53: Expanding the Partnering Business in China
Capital Markets Day 2014 Expanding the Partnering Business in China • Tecan China can leverage strong position in Life Sciences Business into Partnering Business • Chinese Diagnostics companies are looking for high quality, reliable Components and proven instrument platforms • High CFDA regulatory r
Slide 54: Examples of Components Customers
Capital Markets Day 2014 Examples of Components Customers • Life sciences and diagnostics company • Leading provider of POC tests for special blood markers • With the XE1000 pump and RSP robotic arm, Tecan provides key components for two new systems • Status: in CFDA review, expected launch in 2014
Slide 55: China is a Strategic Growth Driver for Tecan
Capital Markets Day 2014 China is a Strategic Growth Driver for Tecan • Strong fundamentals make China the largest single organic growth opportunity for the Life Science Tools industry • Tecan continues to increase its presence and coverage of different market segments • Both divisions are now drivi
Slide 56: Acquisition of IBL International as Part of Strategy
Capital Markets Day 2014 Acquisition of IBL International as Part of Strategy Dr. David Martyr, CEO Sep 18, 2014
Slide 57: M&A is a Key Element of Corporate Strategy
Capital Markets Day 2014 M&A is a Key Element of Corporate Strategy • To support Tecan’s evolution into a solutions business, thereby adding new sources of recurring revenues • In our refined corporate strategy, we want to provide automation and a dedicated solution offering for Clinical Diagnostics
Slide 58: Why the Immunoassay Market is Attractive to Tecan
Capital Markets Day 2014 Why the Immunoassay Market is Attractive to Tecan • Tecan has a long tradition serving the clinical market with instruments optimized for immunoassay processing • Subsegment of microtiter plate based immunoassays is not competing with the typical customers in Partnering Busi
Slide 59: Structure of the Immunoassay Market
Capital Markets Day 2014 Structure of the Immunoassay Market • The immunoassay markets is divided into two segments • High mix / low volume: large number of different specialized tests, but only a smaller number of each single test processed per day • Low mix / high volume: smaller number of routine
Slide 60: Tecan Acquired IBL International
Capital Markets Day 2014 Tecan Acquired IBL International • In July 2014, Tecan acquired IBL International, based in Hamburg, Germany • Transaction successfully closed on July 31, 2014 • An established and leading immunoassay company for specialty diagnostics • Subsegment of the immunoassay market n
Slide 61: Transaction Details
Capital Markets Day 2014 Transaction Details • 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 sales • EBITDA of IBL International at a similar level to the Tecan Group • Since August
Slide 62: IBL International
Capital Markets Day 2014 IBL International Dr. Jan Boesen, CEO IBL International GmbH September 18, 2014
Slide 63: Immunoassays for Specialty Diagnostics
Capital Markets Day 2014 Immunoassays for Specialty Diagnostics 1983 Foundation as a private company in Hamburg selling OEM immunoassays 1990 Establishment of internal product development of endocrinology and neurotransmitter immunoassays 1991 Establishment of a sales team in Germany 2008 Acquisitio
Slide 64: What are Immunoassays?
Capital Markets Day 2014 What are Immunoassays? • An Immunoassay is a biochemical test that measures the presence or concentration of an analyte through the use of antibodies • If antibodies bind to the analyte, the sample is “positive” and a measurable signal is produced • Common forms are enzyme-,
Slide 65: Differentiating Factors for Immunoassays
Capital Markets Day 2014 Differentiating Factors for Immunoassays • What sets immunoassays apart? • The quality of biomarker and antibody used • Excellent specificity • High sensitivity • Optimal balance between specificity and sensitivity for high diagnostic value • High production quality and repr
Slide 66: One of the Largest Specialty Immunoassay Portfolios
Capital Markets Day 2014 One of the Largest Specialty Immunoassay Portfolios Neuroscience Autoimmunity Neurodegeneration, Neurotransmitters, Amyloid- ARAb, MUSK, Spermatozoa Ab, dsDNA β, Catecholamines, Histamin Endocrinology Infectious Diseases 17-OHP, Free-Testo, DHT, DHEA, Active-B12 Borrelia, H.
Slide 67: Example: Neurodegeneration
Capital Markets Day 2014 Example: Neurodegeneration • Alzheimer’s disease (AD) has become an increasing burden on the world’s aging population • Many millions of people are suffering from AD and this number is expected to increase substantially • One of the hallmarks of AD is the accumulation of amy
Slide 68: Example: Saliva Diagnostics
Capital Markets Day 2014 Example: Saliva Diagnostics • Saliva is increasingly used as the specimen of choice in a variety of medical care situations and emerging areas of health measurement and monitoring • Saliva sampling is non-invasive, painless and very convenient, with no need for medical staff
Slide 69: Growing Revenues with New Products
Capital Markets Day 2014 Growing Revenues with New Products Clinical Labs Pharma Hospitals Customer Segments CROs • IBL International has a balanced sales split Academia ≈45% ≈55% between clinical and research applications Geographies • As the home country, Germany is the largest Rest of Germany sin
Slide 70: IBL International is Covering Entire Value Chain
Capital Markets Day 2014 IBL International is Covering Entire Value Chain • Product Development and Registration • Internal R&D and external network • Production and Quality Control • ISO certified, TÜV and FDA audited • Sales and Marketing • Direct sales and distributor support • Customer Service a
Slide 71: Specialist Knowhow, High Quality and Reliability
Capital Markets Day 2014 Specialist Knowhow, High Quality and Reliability • Recognized as specialist for unique and specialty assays • High quality products • Striving for superior customer service • Fast and reliable delivery • Strong technical support and know-how on products and disease areas 71
Slide 72: Why was IBL International looking for a Partner?
Capital Markets Day 2014 Why was IBL International looking for a Partner? • Product development and regulatory • Small size of company relative to innovation costs and increasing regulatory requirements • Sales and market presence • Highly successful with direct sales, but only in small number of co
Slide 73: Immunodiagnostic Expert Meets Automation Specialist
Capital Markets Day 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 products in Endocrinology
Slide 74: M&A as Competitive Advantage
Capital Markets Day 2014 M&A as Competitive Advantage Dr. Klaus Lun, EVP Corporate Development September 18, 2014
Slide 75: Appropriate, Thoughtful M&A as Key Growth Driver
Capital Markets Day 2014 Appropriate, Thoughtful M&A as Key Growth Driver • Key element of the corporate strategy • Executed in a very structured and disciplined approach • Active identification of targets, build-up of target funnel and cultivation of targets • Disciplined approach on valuation Corp
Slide 76: Key Reasons for Driving M&A at Tecan
Capital Markets Day 2014 Key Reasons for Driving M&A at Tecan Use balance sheet to drive more Deploy existing capital to increase growth investors return and use healthy financials to also drive larger deals Support transition of company Use reagent content to leverage into a solution provider insta
Slide 77: M&A Framework at Tecan and Area of Focus
Capital Markets Day 2014 M&A Framework at Tecan and Area of Focus Focus area Reagent Lab Service Lab System Laboratory Healthcare Components provider (analytical provider provider providers (content) analysis) Tecan today Backward integration Forward integration/Market expansion • Assembly / • Add c
Slide 78: M&A Target Landscape
Capital Markets Day 2014 M&A Target Landscape Customer Defined and Aligned with Strategic Priorities Consumables Reagents Liquid Handling Core Product Reach Channel Tecan Components New analytical platforms Detection Scale technologies Close to Core New reagent Sample development preparation Adjacen
Slide 79: Deal Characteristics Unchanged
Capital Markets Day 2014 Deal Characteristics Unchanged Acquisition of IBL ticks all the boxes • Leverage broad application know-how and experience to develop assay specific solution optimized for a platform • Own the assay know-how and have dedicated instrumentation (develop proprietary solutions
Slide 80: Built Strong Foundation to Deliver on M&A Targets
Capital Markets Day 2014 Built Strong Foundation to Deliver on M&A Targets • New experienced Corporate Development team with range of skills in place: • Scientific background – PhD and MSc within life sciences • Deep industry knowledge – all members come from within the industry, >30 years of experi
Slide 81: Built Strong Foundation to Deliver on M&A Targets
Capital Markets Day 2014 Built Strong Foundation to Deliver on M&A Targets • Driven refined corporate strategy with M&A being key part of it and defining areas of focus • Active identification of targets, build-up of target funnel and cultivation of targets • Healthy list of potential targets curren
Slide 82: Driving Growth in the Partnering Business
Capital Markets Day 2014 Driving Growth in the Partnering Business Dr. Achim von Leoprechting, Head of Partnering Business September 18, 2014
Slide 83: Evolution of the Global IVD Market – Tecan focus
Capital Markets Day 2014 Evolution of the Global IVD Market – Tecan focus Demographic and Market Drivers Response of IVD industry Economic Macrotrends Satellite Process Improvement POC Lab • Automation of manual Core processes Lab • Flexible Modular Systems • POC testing • Software & IT connectivity
Slide 84: Driving Growth in the Partnering Business
Capital Markets Day 2014 Driving Growth in the Partnering Business • Aligning marketing and sales organization to better leverage Components and Instrument offering • Supporting partners with major launches and delivery ramp up • Grow Components business • Execute on healthy pipeline of new projects
Slide 85: Evolving the Partnering Business Organization
Capital Markets Day 2014 Evolving the Partnering Business Organization • Commercial Structure • Reinforced senior leadership in the Americas, EMEA and Asia-Pacific • Key-Account focus combining Components and Instrument resources to support customers in both “make” and “buy” decisions • Added techni
Slide 86: New Platform Launches: Dako Omnis
Capital Markets Day 2014 New Platform Launches: Dako Omnis • Dako Omnis for Dako (an Agilent Technologies Company) • New fully-automated advanced staining platform for tissue-based cancer diagnostics • Building on Tecan’s strong application know-how in the IHC/ISH segment • IHC and ISH procedures ca
Slide 87: New Platform Launches: Dako Omnis
Capital Markets Day 2014 New Platform Launches: Dako Omnis • First instruments for market launch delivered in June 2013 • “Full swing launch” in September 2013 • Production ramp up continues through 2014, with sales in H1 2014 in line with expectations • Continuously expanding test menu • EU launch
Slide 88: New Platform Launches: ORTHO VISION
Capital Markets Day 2014 New Platform Launches: ORTHO VISION™ 89
Slide 89: New Platform Launches: ORTHO VISION
Capital Markets Day 2014 New Platform Launches: ORTHO VISION™ 90
Slide 90: New Platform Launches: ORTHO VISION
Capital Markets Day 2014 New Platform Launches: ORTHO VISION™ 91
Slide 91: New Platform Launches: ORTHO VISION
Capital Markets Day 2014 New Platform Launches: ORTHO VISION™ 92
Slide 92: New Platform Launches: ORTHO VISION
Capital Markets Day 2014 New Platform Launches: ORTHO VISION™ 93
Slide 93: New Platform Launches: ORTHO VISION
Capital Markets Day 2014 New Platform Launches: ORTHO VISION™ 94
Slide 94: ORTHO VISION
Capital Markets Day 2014 ORTHOVISIO N- @TECAN. 95
Slide 95: New Platform Launches: Procleix Xpress System
Capital Markets Day 2014 New Platform Launches: Procleix Xpress ® System • In June 2010, Tecan signed an OEM agreement with Novartis Diagnostics • Tecan to provide a flexible, high- Procleix Xpress® System throughput single-platform pooling and GRIFOLS archiving solution for blood banks • In Novembe
Slide 96: Instrument Development: Sgx Clarity System
Capital Markets Day 2014 Instrument Development: Sgx Clarity™ System • Singulex is the developer and leading provider of Single Molecule Counting (SMC™) technology for clinical diagnostics and scientific discovery • SMC technology can enable physicians and scientists to detect biomarkers of disease
Slide 97: Technologies Development: eFluidics update
Capital Markets Day 2014 Technologies Development: eFluidics™ update • eFluidics is Tecan’s development of electrowetting technology • Utilizes proprietary film-based cartridges for sample-to-result processing • Feasibility shown for applications in both research and diagnostic space • Concept syste
Slide 98: Executing on Healthy Pipeline of New Projects
Capital Markets Day 2014 Executing on Healthy Pipeline of New Projects • Well-stocked pipeline of opportunities with about 20 instrument projects • More emphasis on platform-based developments (level 1) • Leveraging Freedom EVO, Cavro Omni and Fluent platforms • Faster time to market, less developme
Slide 99: Collaborations to Strengthen Capabilities
Capital Markets Day 2014 Collaborations to Strengthen Capabilities • Future Diagnostics is a leader in OEM assay development & manufacture • Collaboration agreement signed in September 2014 • Collaboration strengthens Tecan’s service to Partnering Business customers, offering a 360°expertise around
Slide 100: Developing the Components Business
Capital Markets Day 2014 Developing the Components Business • The Components business has grown substantially in 2013 to more than CHF 50 million • Several customer systems are transitioning from seed/development phase to series manufacturing phase • Supporting customers in development and series pr
Slide 101: Partnering Business - Summary
Capital Markets Day 2014 Partnering Business - Summary • Ramp up of major platforms underway • Significant revenue step up expected in 2015 • Well stocked pipeline to fuel future growth • Driving Components and Instrument business in China • Organization with increased market focus 102
Slide 102: Driving Operational Excellence
Capital Markets Day 2014 Driving Operational Excellence Ulrich Kanter, Head of Development & Operations September 18, 2014
Slide 103: Development and Operations (D&O)
Capital Markets Day 2014 Development and Operations (D&O) • D&O priorities • Increasing R&D efficiency – drive innovation • Excellence in Supply Chain Management • Excellence in Manufacturing Mainz, DE Grödig/Salzburg, AT San Jose, US Männedorf/Zürich, CH Hamburg, DE 104
Slide 104: Recent R&D Performance
Capital Markets Day 2014 Recent R&D Performance • Focus was on completion of three major R&D programs which ran in parallel over several years • Dako Omnis • Fluent • Ortho VISION • R&D team ramped down substantially by reducing number of external contractors to adjust to current resource requiremen
Slide 105: Driving R&D Efficiency - the Next Steps
Capital Markets Day 2014 Driving R&D Efficiency - the Next Steps • Further focus on core competencies to increase R&D efficiency • Selection of strategic partners for complementary R&D activities, taking over life cycle management activities establish partner management in R&D • Introduce platform
Slide 106: Increase Innovation Focus in R&D
Capital Markets Day 2014 Increase Innovation Focus in R&D • Focus on area of core competency • Establish a platform to merge technology push and market pull innovation • Set up interdisciplinary teams for innovation sessions combining application know how with expertise in system architecture • Intr
Slide 107: Recent Achievements in Operations
Capital Markets Day 2014 Recent Achievements in Operations • Introduction of production cell concept in all three production sites (San Jose, Grödig and Männedorf) • Introduction of visual shop floor management and regular shop floor meetings • Tactical cost saving initiatives on A-parts • Preparati
Slide 108: Excellence in Supply Chain Management
Capital Markets Day 2014 Excellence in Supply Chain Management • We have a strong focus on management of material cost as main lever to maintain competitive advantage of our legacy product portfolio • Tactical cost down campaigns, extending resources by an external partner • Development of strategic
Slide 109: Excellence in Manufacturing
Capital Markets Day 2014 Excellence in Manufacturing • We provide Excellence in fast prototyping, systems integration, design transfer and validation. We are experts in the design of high quality, low to mid volume production for life science and diagnostics products • Early involvement of Manufactu
Slide 110: Outlook 2014 - 2015
Capital Markets Day 2014 Outlook 2014 - 2015 • Focus to complete running R&D programs in time and quality as planned • Complete alignment of R&D organization to future project landscape • Complete serial transfer for three new platforms Fluent, Dako Omnis and Ortho VISION • Focus on lean production
Slide 111: Outlook and Summary
Capital Markets Day 2014 Outlook and Summary Dr. David Martyr, CEO September 18, 2014
Slide 112: Financial Performance H1 2014
Capital Markets Day 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 from two large customer
Slide 113: Operating Highlights H1 2014
Capital Markets Day 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) in H1 ‘14 as expected •
Slide 114: On Track for Implementation of Priorities for 2014
Capital Markets Day 2014 On Track for Implementation of 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 (
Slide 115: Outlook for Financial Year 2014
Capital Markets Day 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 by Consolidation impact
Slide 116: Medium-Term Outlook
Capital Markets Day 2014 Medium-Term Outlook • Strong growth drivers in place • Major new platform launches: Fluent, Dako Omnis, Ortho VISION • Additional stream of new product additions in both divisions • IBL International acquisition already completed • 2015 will be an inflection point in sales •
Slide 117: Summary and Conclusion
Capital Markets Day 2014 Summary and Conclusion • Wave of new major platforms and new products in both divisions hitting the market • Refined strategy in place with focus now on deployment • M&A transaction closed in July 2014; pipeline well filled • Strengthened organization and management with key
Slide 118: Q&A Next Events Contact
Capital Markets Day 2014 Q&A Next Events 2015: March 18: Financial Results 2014 April 16: Annual Shareholder Meeting Contact Martin Braendle Head of Corporate Communications & IR Phone: +41 (0) 44 922 84 30 [email protected] www.tecan.com 119
Slide 119: Instrument Live Demos
Capital Markets Day 2014 Instrument Live Demos • Fluent Laboratory Automation Solution • ORTHO VISION™ Analyzer • eFluidics™ concept system 120
Slide 120: Thank you for your attention
Capital Markets Day 2014 Thank you for your attention 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 au