Jefferies Healthcare. Conference. New York City, June 1-5, 2015

Transcription

1 Jefferies Healthcare Conference

2 SAFE HARBOR STATEMENT Forward-looking statements involve risks. This company presentation contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this. This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected. It is not planned to update these forward-looking statements. 2

3 AGENDA 1. Overview and Business Model 2. The IVD Market 3. Financials 4. Aspects of Future Growth 3

4 Overview & Business Model The IVD Market Financials Future Growth INVESTMENT SNAPSHOT Market leader in automation solutions in the diagnostic industry with installed base of more than 10,000 systems across over 20 system families including: - Siemens ADVIA Centaur - DiaSorin s LIAISON XL - Hologic/Gen-Probe s PANTHER - biomérieux s new VIDAS CAGR revenues since 2010: 9% Guidance revenue growth 2014 to 2017: 8% - 12% Profitable with revenue of million in 2014 Dividend payments raised over 11 consecutive years LIAISON XL for DiaSorin 4

5 Overview & Business Model The IVD Market Financials Future Growth STRATEC IN THE IVD VALUE CHAIN Unique Market Position Diagnostic Companies Blood Banks, Laboratories Patients STRATEC develops and manufactures fully automated analyzer systems and disposables focusing on the high growth segments in diagnostics Partners market systems together with reagents and consumables to laboratories, blood banks and hospitals worldwide Laboratories performing tests and offering service to doctors and patients using reagents from diagnostic companies Growth drivers: Aging population Developing healthcare systems world wide High volume of new tests 5

6 Overview & Business Model The IVD Market Financials Future Growth BUSINESS MODEL STRATEC provides instrumentation, software and automation solutions OEM development and manufacturing More than 2,700 fully automated analyzer systems manufactured in 2014 Wide range of intellectual property rights Extensive collaboration with partner during design phase STRATEC: Engineering / automation, software, QM Partner: System / reagent / market requirements Systems have long market lifecycles Leads to longstanding partnerships Expanding installed base of systems Product enhancement and extension drives value PANTHER for Hologic Gen-Probe 6

7 Overview & Business Model The IVD Market Financials Future Growth SECURING RETURN ON INVESTMENT Long-term agreements with partners Milestone payments during development stage Operating sales during series production stage Continuous revenues from consumable sales Minimum volume commitment Firm purchase orders STRATEC an integral part of partners plans Reliable partnership Shortened development time Integration of analyzer system and reagents Agreed development budget & transfer price High commitment by both partners Simoa HD-1 for Quanterix 7

8 Overview & Business Model The IVD Market Financials Future Growth 1. Overview and Business Model 2. The IVD Market 3. Financials 4. Aspects of Future Growth 8

9 Overview & Business Model The IVD Market Financials Future Growth IVD MARKET SEGMENTS / IVD Market: ~ 50 billion USD Reagents / Chemistry Instrument Services Instrumentation High Throughput (number of systems) 80% 5% 15% Total instrumentation ~ 7.5 billion USD Low Throughput (number of systems) 9

10 Overview & Business Model The IVD Market Financials Future Growth IVD INSTRUMENTATION MARKET Outsourced vs In House Instrumentation Market 9 8 USD billion % 66% 68% 70% 71% 73% 75% 25% 27% 29% 30% 32% 34% 36% CAGR 3% CAGR 13% E 2014E 2015E IVD OEM Market IVD In House Market Source: Various sources. Excludes glucose test monitors. 10

11 Overview & Business Model The IVD Market Financials Future Growth GLOBAL TOP 20 IVD COMPANIES Revenues 2013 (USD billion) 1. Roche Diagnostics SIEMENS Abbott Diagnostics Danaher Thermo Fisher Alere Ortho Clinical Diagnostics (now Carlyte in 2014) Sysmex biomerieux BIO-RAD BECTON DICKINSON Hologic / Gen-Probe CH Werfen Grifols (incl. Novartis diagnostics business unit) Agilent / Dako QIAGEN DiaSorin Diagnostica Stago EUROIMMUN Immucor 0.3 Customer STRATEC Instrumentation Customer STRATEC Data Management Not a STRATEC customer Source: IVD News / figures adjusted by acquisitions in 2012 / non public companies estimated / non reported sector revenues estimated 11

12 Overview & Business Model The IVD Market Financials Future Growth DEFINING OUTSOURCING Design Phase Integration- / Transfer Phase Manufacturing Phase Inhouse Development Department Development Department Supply Chain Contract Manufacturing Transferring Responsibilities In-house or 3rd Party Development Department Outsourcing Partner In-house Development Department Outsourcing Partner CMs & EMS Outsourcing Time / Costs 12

13 Overview & Business Model The IVD Market Financials Future Growth 1. Overview and Business Model 2. The IVD Market 3. Financials 4. Aspects of Future Growth 13

14 Overview & Business Model The IVD Market Financials Future Growth FINANCIALS AT A GLANCE Key figures after the first three months ( million) March 31, 2015 March 31, 2014 Change Sales % EBIT * + 9.7% EBIT margin (%) * bps Consolidated net income * + 8.4% Earnings per share ( ) * + 8.1% * 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term of the employment contract for a retired member of the board of management. Unadjusted results in the first quarter of 2014 EBIT amounts to 4.4 million; the corresponding EBIT margin amounts to 12.7%, consolidated net income to 3.7 million and earnings per share to The effective amount of the liability due may differ at the time of payment. 14

15 Overview & Business Model The IVD Market Financials Future Growth SALES 3-Months Sales compared to Annual Sales million Recently launched systems slowly gaining traction Continuously high development activities Annual Sales as of 12/31 3-Months Sales as of 03/

16 Overview & Business Model The IVD Market Financials Future Growth INSTALLED BASE & PRODUCT GROUPS As of December 31 Delivered systems & installed base As of December 31 Relative share by product group % % 80% 70% % % 40% % % 10% % Number of analyzer systems delivered Analyzer systems Replacement parts / disposables Installed base (based on a 5 year average life cycle) Development, service and consulting 16

17 Overview & Business Model The IVD Market Financials Future Growth EBIT & EBIT MARGIN As of March 31 EBIT in million EBIT margin in % ,98 4,35 4,41 5,3 5,8 20% 19% 18% 17% 16% Improving EBIT margin at 16.9%: - Efficiency improvements - Currency effects - Solid revenue share with service parts 15% 2 14% 13% % Q1 EBIT EBIT margin * 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term of the employment contract for a retired member of the Board of Management. Unadjusted in the first quarter of 2014 EBIT amounts to 4.4 million; the corresponding EBIT margin amounts to 12.7%. The effective amount of the liability due may differ at the time of payment. 17

18 Overview & Business Model The IVD Market Financials Future Growth EARNINGS AFTER THREE MONTHS Key earnings figures as of March 31 7 Earnings per share as of March 31 0,50 million ,3* 4,4* 5,8 4,7 0,40 0,30 0,20 0, * 0, , EBIT Consolidated net income EPS Q1 tax rate at 19.8% (previous year: 14.6%) Tax rate expected to rise Dividend proposal per share at 0.70 * 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term of the employment contract for a retired member of the Board of Management. Unadjusted in the first quarter of 2014 EBIT amounts to 4.4 million; consolidated net income to 3.7 million and earnings per share to The effective amount of the liability due may differ at the time of payment. 18

19 Overview & Business Model The IVD Market Financials Future Growth CASH FLOW As of March 31 IFRS ( million) 3M/2015 3M/2014 Cash flow Cash flow operating activities Cash flow investment activities Cash flow financing activities Free cash flow Cash and cash equivalents at end of period

20 Overview & Business Model The IVD Market Financials Future Growth 1. Overview and Business Model 2. The IVD Market 3. Financials 4. Aspects of Future Growth 20

21 Overview & Business Model The IVD Market Financials Future Growth Focus in 2015 and beyond Revenue Growth: Hitting development milestones New product launches and ramp-ups Business Development: Finalize current negotiations Re-accelerate growth from system platforms Extension of development and manufacturing capacities Strategic options for Business Units Inorganic growth opportunities Profitability and Cash flow: Improve structure for manufacturing costs Further reduction of working capital requirements Manage increasing impact from foreign exchange rates 21

22 Overview & Business Model The IVD Market Financials Future Growth STRATEC GUIDANCE Sales Guidance million Sales: 128 million CAGR 4-year sales : 8% - 12% based on 2013 Sales Guidance until 2017: 2014 to 2017: 8% - 12% CAGR based on : Slight improvement compared to 2014 EBIT Margin Guidance: 2015: Slight improvement compared to

23 CONTACT STRATEC Biomedical AG Gewerbestr Birkenfeld Germany Tel: Fax: TICKER Symbol: SBS.DE Bloomberg: SBS:GR Reuters: SBSG.DE ISIN: DE WKN: Marcus Wolfinger CEO THANK YOU FOR YOUR ATTENTION!

24 APPENDIX

25 STRATEC GROUP A1

26 KEY FIGURES AT A GLANCE AS OF DECEMBER 31 IFRS ( million) Sales EBIT EBIT margin (%) Consolidated net income Earnings per share ( ) Dividend per share ( ) No. of employees Total assets Equity ratio (%) Free cash flow A2

27 SHAREHOLDER STRUCTURE & SHARE SHAREHOLDER STRUCTURE (as of: 12/31/2014) 25.59% 41.71% Fixed and family ownership (incl. investment companies) Treasury shares Institutional investors Retail investors incl. not identified institutional investors 32.60% SHARE 0.10% IPO Aug Capital increase < 10%, Mar < 10%, Sep Number of shares 11,795,445 Share price (05/27/2015) Market capitalization 536 million A5

28 INSTITUTIONAL SHAREHOLDERS TOP 15 AS OF MARCH 2015 Holder Name Holding Allianz Global Investors Europe, GER 7.1 % Threadneedle Asset Management, GBR 5.0 % Montanaro Asset Management, GBR 4.8 % OppenheimerFunds, USA 3.0 % Financiere de l Echiquier, FRA 2.9 % BNP Paribas Investment Partners Belgium, FRA 2.8 % ING Investment Management Advisors, NED 1.7 % Skandinaviska Enskilda Banken, DEN 1.5 % Norges Bank Investment Management, NOR 1.4 % JPMorgan Asset Management, GBR 1.2 % Comgest, FRA 0.9 % Henderson Global Investors, GBR 0.8 % Credit Suisse, SUI 0.6 % Deutsche Asset & Wealth Management Investment, GER 0.6 % Lupus alpha Asset Management, GER 0.5 % A6

29 ANALYST COVERAGE Berenberg Bank Dr. Scott Bardo Phone: Deutsche Bank Gunnar Romer Phone : HSBC Trinkaus & Burkhardt Jan Keppeler Phone : Landesbank Baden-Württemberg Volker Stoll Phone : Bryan, Garnier & Co Mathieu Chabert Phone: DZ Bank Sven Kürten Phone : Kepler Cheuvreux Oliver Reinberg Phone : Oddo Seydler Bank Igor Kim Phone: A7

30 FINANCIAL CALENDAR /01-05/2015, New York City, NY, USA 07/29/2015 Publication of Interim Report as of 06/30/ /08/2015 Sector Conference, Commerzbank, Frankfurt, GER 09/09-10/ th Annual Goldman Sachs European Medtech and Healthcare Services Conference, London, UK 09/21-23/2015 German Corporate Conference, Berenberg Bank and Goldman Sachs, Munich, GER 10/28/2015 Publication of Interim Report as of 09/30/ /12/2015 HSBC Healthcare Day 2015, Frankfurt, GER 11/23-25/2015 German Equity Forum, Deutsche Börse Group, Frankfurt, GER Subject to confirmation and amendments A8