Tecan Group Ag · SIX:TECN
Tecan — FY2016 Earnings Presentation
31 slides from Tecan's earnings presentation, Mar 15, 2017
Slide 1: Full Year Results 2016
Zurich, March 15 2017 Full Year Results 2016 ANALYST & MEDIA CONFERENCE
Slide 2: Speakers
Speakers Dr. David Martyr, CEO Dr. Rudolf Eugster, CFO
Slide 3: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS PRIORITIES OUTLOOK QUESTIONS AND ANSWERS 3
Slide 4: Financial Performance 2016
Financial Performance 2016 • Another year of double-digit sales growth; with +13.5% in local currencies exceeding the CHF 500 million mark for the first time in the Company’s history • Strong sales growth in both divisions and all regions; China a particular highlight with sales growing by more than
Slide 5: Operating Highlights 2016
Operating Highlights 2016 • Significant increase in serial production of major platforms in Partnering Business • Partner Ortho Clinical Diagnostics celebrated the 1’000th installation of an ORTHO VISION™ Analyzer platform worldwide in January 2017 • Sias integration and move to Männedorf site compl
Slide 6: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS PRIORITIES OUTLOOK QUESTIONS AND ANSWERS 6
Slide 7: 2016 Order Entry and Sales Performance
2016 Order Entry and Sales Performance ORDER ENTRY FY 2016 ORDER ENTRY H2 2016 VS. H2 2015 520 • +3.1% in CHF and +2.8% in LC 503.2 500 • Strong growth in Life Sciences Business • Growth in Partnering Business impacted by one large CHF (mio) 480 order shifted to January 2017 465.0 460 ORDER ENTRY FY
Slide 8: 2016 Segment Sales
2016 Segment Sales SALES (IN CHF MILLIONS) LIFE SCIENCES BUSINESS: 300.0 2015 H2 • Sales up by 11.7% in CHF and 10.7% higher in LC 280.2 2016 280.0 • Organic sales growth of +7.5% in LC 260.0 253.0 240.0 FY • Sales 10.7% above prior-year in CHF and 8.6% 226.0 220.0 higher in LC 200.0 187.3 180.0 • O
Slide 9: FY 2016 Regional Sales Development
FY 2016 Regional Sales Development YoY % YoY % +27.0% in LC +52.3% in LC +30.2% in CHF +55.1% in CHF Others EUROPE: 3% • Strong growth driven primarily by Partnering Business and first-time Sias contribution Asia 15% NORTH AMERICA: • Solid growth in both divisions • Note: major new platform for US m
Slide 10: FY 2016 Gross Profit
FY 2016 Gross Profit GROSS PROFIT (% = % OF SALES) 250 239.4 GROSS PROFIT INCREASED TO CHF 239.4M • CHF 23.9m or 11.1% above 2015 230 215.5 GROSS PROFIT MARGIN DOWN BY 160 BPS CHF (mio) 210 • (-) Impact from acquisitions • (-) Divisional mix with higher revenue share from 48.9% 47.3% Partnering Busi
Slide 11: FY 2016 Cost Structure
FY 2016 Cost Structure OPERATING EXPENSES (% = % OF SALES) OPERATING EXPENSES GREW IN LINE WITH 172.5m SALES 160 150.0m (34.1%) (34.1%) 140 • All operating expenses include costs from 76.5 (15.1%) acquired businesses 120 69.2 (15.7%) 100 • 2015 expenses benefitted from a positive one- CHF (mio) time
Slide 12: FY 2016 EBITDA Margin Development
FY 2016 EBITDA Margin Development +140 bps 19.5% 18.9% 18.1% 17.6% -80 bps -190 bps 2015 Reported One-time 2015 Underlying 2016 Underlying 2016 Underlying Acquisition- 2016 Reported EBITDA Margin positive tailwind EBITDA Margin Improvement EBITDA Margin related Effects EBITDA Margin • Underlying EBI
Slide 13: FY 2016 EBIT and EBITDA
FY 2016 EBIT and EBITDA EBIT AND EBITDA (IN CHF MILLIONS) 90 89.0 83.4 EBIT 80 EBITDA 70 66.9 68.1 EBIT INCREASED TO CHF 68.1M 60 • Including acquisition-related costs in a mid single-digit million Swiss franc amount 50 2015 2016 EBIT AND EBITDA MARGIN (% = % OF SALES) EBITDA GREW TO CHF 89.0M 20 •
Slide 14: FY 2016 Segment Profitability
FY 2016 Segment Profitability EBIT (IN CHF MILLIONS) 50 45.7 LIFE SCIENCES BUSINESS: 45.4 40 • EBIT margin decreased to 15.6% 33.8 30.2 • Factors contributing include: 30 2015 • (+) Positive price effect 2016 20 • (+) Positive volume effect 10 • (-) Product mix 0 Life Sciences Partnering Business Bu
Slide 15: FY 2016 Net Profit
FY 2016 Net Profit NET PROFIT 60 57.1 55 54.5 DESPITE HIGHER OPERATING RESULT, NET PROFIT BELOW PRIOR YEAR DUE TO 50 EFFECTS BELOW EBIT LINE CHF (mio) 45.7.5 • (-) CHF 1.8m lower financial result due to 45 currency hedging 48.8% 49.5% 42.4 40.2 • (-) More normalized tax rate of 16.6%; 2015 tax 40 ra
Slide 16: FY 2016 Basic Earnings per Share
FY 2016 Basic Earnings per Share BASIC EARNINGS PER SHARE 6.00 EARNINGS PER SHARE DEVELOPED IN LINE WITH NET PROFIT TO CHF 4.74 5.05 5.00 CHF / share 4.74 AVERAGE NUMBER OF SHARES 4.16 4.00 3.92 OUTSTANDING: 11.5M (2015: 11.3M) 48.8% 49.5% 3.63 48.8% 49.5% 3.00 UNCHANGED DIVIDEND OF CHF 1.75 PER 201
Slide 17: FY 2016 Cash Flow
FY 2016 Cash Flow +118.8 -26.2 -14.0 -40.3 246.7 208.4 Cash at end of From Operations From Investments From Financing Investment Cash at end 2015 SPEware of 2016 CASH FLOW FROM OPERATIONS OF CHF 118.8M (2015: CHF 99.1M) • Cash conversion of 23.5% of sales, including further reimbursement of developm
Slide 18: FY 2016 Key Figures
FY 2016 Key Figures 2015 2016 Δ IN % Sales (in CHF mio) 440.3 506.2 +15.0% Sales in local currencies (in CHF mio) 446.1 506.2 +13.5% Gross Profit (in CHF mio) 215.5 239.4 +11.1% in % of sales 48.9% 47.3% R&D (in CHF mio) 39.9 47.1 +18.1% in % of sales 9.1% 9.3% EBIT (in CHF mio) 66.9 68.1 +1.8% in %
Slide 19: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS PRIORITIES OUTLOOK QUESTIONS AND ANSWERS 19
Slide 20: Review of Priorities of 2016
Review of Priorities of 2016 • Realized a MSD million CHF amount of net material cost savings Operational efficiency • Achieved significantly shorter manufacturing times • Fully integrated acquired SIAS business • Substantial increase in serial production Partnering Business • Significant sales grow
Slide 21: Priorities for 2017
Priorities for 2017 • Realize further material cost savings Operational efficiency • Further improvements in operating efficiencies • Maintaining fast pace of innovation • Continued delivery ramp-up • Supporting new product launches Partnering Business • Concluding new development agreements • Conti
Slide 22: 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 23: Priorities for 2017
Priorities for 2017 • Realize further material cost savings Operational efficiency • Further improvements in operating efficiencies • Maintaining fast pace of innovation • Continued delivery ramp-up • Supporting new product launches Partnering Business • Concluding new development agreements • Conti
Slide 24: Growing Solutions Offering in Select Applications
Growing Solutions Offering in Select Applications LIFE SCIENCES BUSINESS LEVERAGING TECAN’S GLOBAL PRESENCE AND CUSTOMER BASE IMMUNOASSAYS FOR SPECIALTY SAMPLE PREPARATION SOLUTIONS DIAGNOSTICS FOR MASS SPECTROMETRY Building on Tecan’s long tradition in Leveraging Tecan’s leading position in mass im
Slide 25: Priorities for 2017
Priorities for 2017 • Realize further material cost savings Operational efficiency • Further improvements in operating efficiencies • Maintaining fast pace of innovation • Continued delivery ramp-up • Supporting new product launches Partnering Business • Concluding new development agreements • Conti
Slide 26: Expanding the Partnering Business Portfolio with Pulssar Technologies Precision Pumps
Expanding the Partnering Business Portfolio with Pulssar Technologies Precision Pumps • Innovative niche player • Market leader in in OEM piston pumps laboratory automation • Strong reputation for • Leading brand in OEM quality of products components and • Modular product line of integrated IVD syst
Slide 27: Agenda
Agenda INTRODUCTION FINANCIAL RESULTS PRIORITIES OUTLOOK QUESTIONS AND ANSWERS 27
Slide 28: Outlook for 2017
Outlook for 2017 SALES DEVELOPMENT OPERATING PROFIT (EBITDA) Sales to increase by 550 at least 6% in LC 110.0 EBITDA margin to 525 CHF (mio) 506.2 expand to at least 18% 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 2013 20
Slide 29: 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 EVENTS 2017 www.tecan.com April 11: Annual Shareholder Meeting August 16: Half-year reporting 29
Slide 30: a BE & ae
a BE & ae , Jee) a) Empowered :
Slide 31: 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