Tecan Group Ag · SIX:TECN
Tecan — FY2013 Earnings Presentation
32 slides from Tecan's earnings presentation, Mar 11, 2014
Slide 1: Full Year Results 2013
Zürich, March 11th 2014 Full Year Results 2013 Analyst & Media Conference
Slide 2: Speakers
Speakers Dr. David Martyr, CEO Dr. Rudolf Eugster, CFO
Slide 3: Agenda
Tecan Full Year Results 2013 / March 11th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities Dr. David Martyr • Outlook & Summary Dr. David Martyr • Questions & Answers 3
Slide 4: Financial Performance 2013
Tecan Full Year Results 2013 / March 11th 2014 Financial Performance 2013 • Financial objectives set at start of the year only partly met • Sales growth of +0.1% in local currencies below original expectations • One clear cause: lower Life Sciences Business instrument sales in established markets in
Slide 5: Operational Highlights 2013
Tecan Full Year Results 2013 / March 11th 2014 Operational Highlights 2013 • Important progress in the implementation of strategic priorities • Dako Omnis development (P16) concluded • Instrument successfully launched by partner Dako in September 2013 • Good progress in other development programs wi
Slide 6: Agenda
Tecan Full Year Results 2013 / March 11th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities Dr. David Martyr • Outlook & Summary Dr. David Martyr • Questions & Answers 6
Slide 7: 2013 Sales Performance and Order Entry
Tecan Full Year Results 2013 / March 11th 2014 2013 Sales Performance and Order Entry Sales FY 2013 400 • Sales FY 2013 vs. FY 2012 390 391.1 388.3 • -0.7% in Swiss Francs • +0.1% in local currencies 380 370 • Sales H2 2013 vs. H2 2012 • -1.1% in Swiss Francs CHF (mio) 360 • +0.8% in local currencie
Slide 8: 2013 Segment Sales
Tecan Full Year Results 2013 / March 11th 2014 2013 Segment Sales Sales (in CHF millions) • Life Sciences Business: 250.0 235.2 • FY 2013: Sales 4.9% below prior-year in CHF 223.7 and 3.7% lower in local currencies 225.0 • Decline largely due to fewer instruments sold 200.0 2012 in established marke
Slide 9: 2013 Regional Sales Development
Tecan Full Year Results 2013 / March 11th 2014 2013 Regional Sales Development YoY % -17.3% in LC • Europe: growth in the Partnering YoY % YoY % Business accelerated further in the -16.0% in CHF +0.5% in LC +0.8% in LC second half, driven by instrument -6.1% in CHF Others -0.2% in CHF deliveries to
Slide 10: FY 2013 Gross Profit
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 Gross Profit Gross Profit (% = as a % of sales) • Gross profit decreased to CHF 189.6m • CHF 8.8m or 4.5% below 2012 200 198.4 190 189.6 • Gross profit margin at 48.8% • Product mix impact: 180 more sales from Partnering Business 48.8% 50.7% and
Slide 11: FY 2013 Cost Structure
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 Cost Structure Operating Expenses (% = as a % of sales) • Costs decreased by CHF 10.0m (-6.8%) • Selling & Marketing 160 146.7m 136.7m • Less costs, despite increased investments (37.4%) 140 (35.2%) in sales organization (especially in China) 35
Slide 12: FY 2013 EBIT
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 EBIT EBIT (% = as a % of sales) 60 54.8 • EBIT increased to CHF 54.8m 55 52.7 • CHF 2.1m or 4.0% above 2012 50 14.1% • EBIT margin at 14.1% 13.5% • 60 basis points higher, fulfilling target of CHF (mio) 45 improvement of “around 50 basis points”
Slide 13: FY 2013 Segment Profitability
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 Segment Profitability EBIT (in CHF millions) • Life Sciences Business: 45 42.7 • EBIT down by 37% to CHF 18.4m 40 35 • EBIT margin decreased to 7.8% 29.3 30.8 30 • Significant negative volume and mix effect 25 2012 18.4 • Reduced R&D expenses, b
Slide 14: FY 2013 Net Profit
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 Net Profit Net Profit (% = as a % of sales) • Net profit of CHF 45.7m • CHF 3.3m or 7.8% above 2012 50 • Positive effects below EBIT line: 45.7 45 improved financial result and lower tax 42.4 rate 40 • Net profit margin reached 11.8% CHF (mio) 1
Slide 15: FY 2013 Basic Earnings per Share
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 Basic Earnings per Share Basic Earnings per Share • Earnings per share increased by 6.1% to CHF 4.16 4.40 4.20 4.16 • Average number of shares at 11.0m (2012: 10.8m) CHF / share 4.00 3.92 3.80 • Unchanged dividend of CHF 1.50 per share proposed
Slide 16: FY 2013 Cash Flow
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 Cash Flow 64.6 -36.7 150.4 144.5 -19.7 -2.3 Cash at end of From Operations, Prefinancing of From From Cash at end of 2013 2012 excl. prefinancing OEM development Investments Financing1 • Cash flow from operations increased to CHF 27.9m (2012: CH
Slide 17: FY 2013 Key Figures
Tecan Full Year Results 2013 / March 11th 2014 FY 2013 Key Figures CHF m 2012 2013 ∆ 12/13 Sales 391.1 388.3 -0.7% Sales in local currencies 387.8 388.3 +0.1% Gross Profit 198.4 189.6 -4.5% in % of sales 50.7% 48.8% R&D 51.4 45.3 -11.8% in % of sales 13.1% 11.7% OPEX 146.7 136.7 -6.8% in % of sales
Slide 18: Agenda
Tecan Full Year Results 2013 / March 11th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities Dr. David Martyr • Outlook & Summary Dr. David Martyr • Questions & Answers 18
Slide 19: Review of Priorities 2013
Tecan Full Year Results 2013 / March 11th 2014 Review of Priorities 2013 Commence instrument • Development successfully completed • Instrument launched in September; shipments for Dako Omnis (P16) very positive end-user feedback • Large batch of instruments for validation Commence instrument was sup
Slide 20: Priorities for 2014
Tecan Full Year Results 2013 / March 11th 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 Scie
Slide 21: Driving Growth in the Life Sciences Business
Tecan Full Year Results 2013 / March 11th 2014 Driving Growth in the Life Sciences Business • Improved economic and market environment in Europe and North America • Recent and upcoming product introductions • Several new products with focus on improved user-friendliness launched early 2014 • High-th
Slide 22: Partnering Business Delivery Ramp-up
Tecan Full Year Results 2013 / March 11th 2014 Partnering Business Delivery Ramp-up • Partner Dako (an Agilent Technologies Company) successfully launched the Dako Omnis in 09/2013 • Considerably higher production volumes of instrument expected in 2014 compared to 2013 • ORTHO Vision™ instrument wil
Slide 23: Continue to Focus on Building out China
Tecan Full Year Results 2013 / March 11th 2014 Continue to Focus on Building out China • Sales expected to continue to grow Sales Development in China with a CAGR of around 25% to reach 50 over CHF 40m by 2015 40 >40m CAGR >25% • Strengthened leadership and continuing 30 to add “feet on the street”
Slide 24: Improving Operational Excellence
Tecan Full Year Results 2013 / March 11th 2014 Improving Operational Excellence • A multi-year project to reduce manufacturing costs (COGS) was launched at the start of 2014 • The biggest potential is lowering material costs • Improved supply chain management and sourcing are key factors to develop
Slide 25: Driving Appropriate, Thoughtful M&A
Tecan Full Year Results 2013 / March 11th 2014 Driving Appropriate, Thoughtful M&A • M&A is a key element of the corporate strategy • Team and approach • New experienced Corporate Development team with range of skills (scientific background, deep industry knowledge, finance expertise, project manage
Slide 26: Agenda
Tecan Full Year Results 2013 / March 11th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities Dr. David Martyr • Outlook & Summary Dr. David Martyr • Questions & Answers 26
Slide 27: Outlook for 2014
Tecan Full Year Results 2013 / March 11th 2014 Outlook for 2014 Sales At least mid single-digit sales growth in local currencies Profitability Further increase of EBIT Margin by around 50 bps Based on average FX rates of: 1.21 EUR/CHF and 0.92 USD/CHF 27
Slide 28: Medium-Term Targets for 2015
Tecan Full Year Results 2013 / March 11th 2014 Medium-Term Targets for 2015 Sales of around CHF 475 million at current currencies and increased profitability • Updated objective reflecting negative FX impact since March 2013 (estimated CHF 15 million) and 2013 business results • Actual rates in 2015
Slide 29: Summary and Conclusion
Tecan Full Year Results 2013 / March 11th 2014 Summary and Conclusion • Financial objectives for 2013 only partly met • Topline below original expectations, profitability target achieved • Good progress in development programs • Strengthened organization • Refined strategy in place, including focus
Slide 30: Agenda
Tecan Full Year Results 2013 / March 11th 2014 Agenda • Introduction Dr. David Martyr • Financial Results Dr. Rudolf Eugster • Priorities Dr. David Martyr • Outlook & Summary Dr. David Martyr • Questions & Answers 30
Slide 31: Next Events Contact
Tecan Full Year Results 2013 / March 11th 2014 Next Events 2014: March 25: Publication of full Annual Report 2013 April 14: Annual Shareholder Meeting August 13: Half Year Results 2014 Contact Martin Braendle Head of Corporate Communications & Investor Relations Phone: +41 (0) 44 922 84 30 investor@
Slide 32: 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