Sixth German Corporate Conference

Transcription

1 Berenberg and Goldman Sachs Sixth German Corporate 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 OVERVIEW AND BUSINESS MODEL THE IVD MARKET FINANCIALS FUTURE GROWTH 3

4 OVERVIEW AND BUSINESS MODEL 4

5 Overview & Business Model The IVD Market Financials Future Growth STRATEC AT A GLANCE Market leader in automation solutions for the diagnostics industry and translational research ~ employees worldwide More than 13,000 systems with medium to high throughput installed globally (e.g. DiaSorin s LIAISON XL Hologic/Gen-Probe s PANTHER Siemens ADVIA Centaur biomérieux s new VIDAS) More than 25,000 low throughput systems installed globally Revenue million in 2016 (CAGR revenues since IPO in 1998: ~18%) Revenue growth forecasted to million in 2017 Dividend payments raised over 13 consecutive years 5

6 Overview & Business Model The IVD Market Financials Future Growth UNIQUE MARKET POSITION STRATEC IN THE IVD VALUE CHAIN 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 6

7 Overview & Business Model The IVD Market Financials Future Growth BUSINESS MODEL STRATEC provides instrumentation, consumables, software and automation solutions OEM development and manufacturing More than 7,000 fully automated analyzer systems manufactured in 2016 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 Consumable for Simoa HD-1 Simoa HD-1 for Quanterix 7

8 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 PANTHER for Hologic Reliable partnership Shortened development time Integration of analyzer system and reagents Agreed development budget & transfer price High commitment by both partners LIAISON XL for DiaSorin 8

9 THE IVD MARKET 9

10 Overview & Business Model The IVD Market Financials Future Growth IVD MARKET SEGMENTS / IVD Market: ~ 60 billion USD in 2016 Market by product type Market by sector Reagents / Chemistry 77% Instrument Services Instrumentation Consumables / plastics / packaging 3% 15% 5% High Throughput Low Throughput Total instrumentation ~ 7.5 billion USD CAGR : IVD Market: 4% Molecular Diagnostic: 8% Immunodiagnostics: 4% Hematology: 2% Blood bank: 6% Number of systems Source: The worldwide market for In Vitro Diagnostic Tests, 9 th Edition. 10

11 Overview & Business Model The IVD Market Financials Future Growth OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET Total instrumentation ~ 7.5 billion USD Outsourced 27 % Outsourced 36 % Outsourced 44 % Source: Own estimates based on historical market data and recent industry trends In House 73 % In House 64 % In House 56 % 11

12 Overview & Business Model The IVD Market Financials Future Growth A SELECTION OF STRATEC CUSTOMERS GLOBAL TOP 20 IVD COMPANIES Revenues 2016 (USD billion) 1. Roche Diagnostics Danaher SIEMENS Abbott Diagnostics ThermoFisher Alere Sysmex Ortho Clinical Diagnostics biomerieux BECTON DICKINSON BIO-RAD Hologic CH Werfen Grifols Agilent Diagnostica Stago QIAGEN Diasorin Perkin Elmer Immucor ~0.4 AND OTHER GAME-CHANGING COMPANIES (acquired by Bio-Rad in January 2017) Source: IVD News / figures adjusted by acquisitions in 2016 / non-public companies estimated / non-reported sector revenues estimated 12

13 FINANCIALS 13

14 Overview & Business Model The IVD Market Financials Future Growth FINANCIALS AT A GLANCE Key figures after the first six months ( million) June 30, 2017 June 30, 2016 Change Sales % EBITDA % EBITDA margin (%) bps EBIT % EBIT margin (%) bps Cons. net income % Earnings per share ( ) % 1 Figures adjusted for effects from acquisition activities 2 Additionally adjusted for non-recurring items arising from the 2016 external tax audit for the assessment periods from 2009 to

15 million Overview & Business Model The IVD Market Financials Future Growth SALES 6-Months Sales compared to Annual Sales H1/2017 Sales +29.1% to Mio. Diatron & STRATEC Consumables : 25.1 Mio. in H1/ Annual Sales as of 12/31 6-Months Sales as of 06/30 15

16 Overview & Business Model The IVD Market Financials Future Growth EBIT & EBIT MARGIN As of June 30 EBIT in million EBIT margin in % % 18% 16% 14% 12% EBIT margin at 12.8% H1/2017 organic: 16.0 % Dilution through acquisitions Recovery expected for FY % 2 8% % H1 EBIT H1 EBIT margin Figures adjusted for effects from acquisition activities 16

17 Overview & Business Model The IVD Market Financials Future Growth OUTLOOK PROFITABILITY STRATEC Consumables expected to pick up in second half Expansion of manufacturing depth Increase in gross margin through product mix Decline in material intensive launch support activities MID-TERM EXPECTATION Constant margin development forecasted Mid-term profitability planned to increase winning new contracts will soften positive effects 17

18 Overview & Business Model The IVD Market Financials Future Growth EARNINGS AFTER SIX MONTHS Earnings per share as of June 30 1,00 0,90 0,80 0,70 0,60 0,50 0,40 0,30 0, Adjusted EPS at 0.84 (H1/2016: 0.87) Adjusted H1 tax rate at 23.5% (H1/2016: 16.2%) Dividend pay out per share at 0.77 (previous year: 0.75) 0,10 0, EPS Figures adjusted for effects from acquisition activities 18

19 FUTURE GROWTH 19

20 Overview & Business Model The IVD Market Financials Future Growth FOCUS IN 2017 AND BEYOND Improve profitability across business (benefits of scale driven by top-line growth) Further realize synergies through development activities across STRATEC businesses Expand leading market role Facilitate process of instrument/consumables integration for partners Achieve milestones & market launches Execute important development and supply agreements 20

21 Overview & Business Model The IVD Market Financials Future Growth FINANCIAL GUIDANCE Sales guidance for 2017: 205 million to 220 million sales expected to significantly exceed the lower end of this range Organic double digit top line growth in 2017 Profitability in 2017 on a broadly stable level FUTURE GUIDANCE Sales and profitability guidance for current years with publication of annual report Broader statement regarding medium-term expectation: Average annual organic sales growth (CAGR) in the high single-digit or low doubledigit percentage range in the years ahead with a broadly consistent EBIT margin 21

22 CONTACT STRATEC Biomedical AG Gewerbestr Birkenfeld Germany Tel: Fax: TICKER Symbol: Bloomberg: Reuters: ISIN: WKN: SBS.DE SBS:GR SBSG.DE DE000STRA555 STRA55 THANK YOU FOR YOUR ATTENTION! 22

23 APPENDIX 23

24 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 figure adjusted for one-off items resulting from transaction activities and related reorganization expenses figure additionally adjusted for financing expenses and tax expenses in connection with the acquisitions of the Diatron Group and STRATEC Consumables, for one-off items resulting from the tax audit for the 2009 to 2013 assessment periods, and for tax effects relating to reorganization expenses A1

25 SHAREHOLDER STRUCTURE & SHARE SHAREHOLDER STRUCTURE (as of: 03/31/2017) ~ 21.7% ~ 41.5% Fixed and family ownership (incl. investment companies) Treasury shares Institutional investors Retail investors incl. not identified institutional investors ~ 36.7% SHARE ~ 0.1% IPO Aug Capital increase < 10%, Mar < 10%, Sep Number of shares 11,913,445 Share price (09/11/2017) Market capitalization 615 million A2

26 INSTITUTIONAL SHAREHOLDERS TOP 15 AS OF DECEMBER 31, 2016 Holder Name Holding OppenheimerFunds, USA 5.2 % Allianz IARD, FRA 5.1 % Columbia Threadneedle Investments, GBR 5.0 % Montanaro Asset Management, GBR 2.8 % BNP Paribas Investment Partners Belgium, FRA 2.5 % Deutsche Asset Management Investment, GER 2.5 % Juno Investment Partners, NED 1.6 % Comgest, FRA 1.2 % Wellington Management Company, USA 1.1 % Lupus alpha Asset Management, GER 1.1 % Schroder Investment Management North America, USA 1.0 % Amundi Asset Management, FRA 0.7 % Credit Suisse, SUI 0.6 % Royce & Associates, USA 0.5 % BlackRock Asset Management Deutschland, GER 0.5 % A3

27 ANALYST COVERAGE Berenberg Bank Jakob Berry Phone: : Kepler Cheuvreux Oliver Reinberg Phone : METZLER Capital Markets Alexander Neuberger Phone: Oddo BHF Corporates & Markets Igor Kim Phone: Deutsche Bank Falko Friedrichs Phone : HSBC Trinkaus & Burkhardt Phone : Landesbank Baden-Württemberg Volker Stoll Phone : Warburg Research Michael Heider Phone: A4

28 FINANCIAL CALENDAR 09/18-20/2017 6th German Corporate Conference, Munich, GER 10/04/2017 dbaccess Small & Mid Cap Corporate Day 2017, London, UK 10/26/2017 Publication of Quarterly Statement 9M /16/2017 Jefferies London Healthcare Conference, London, UK 11/23/2017 HSBC Healthcare Day, Frankfurt, GER 11/28/2017 German Equity Forum, Frankfurt, GER Subject to confirmation and amendments A5