December 1, 2011 Analyst & Investor Day 2011

Transcription

1 December 1, 2011 Analyst & Investor Day 2011 Tecan Group AG

2 December 1, 2011 / p2 / Analyst & Investor Day Tecan Analyst & Investor Day 2011 Willkommen! Welcome! Bienvenue! Benvenuto! Bienvenido! ようこそ欢迎大家! Приемам أه لا و س ه لا

3 December 1, 2011 / p3 / Analyst & Investor Day Today s Agenda 7:45-8:20 Welcome Coffee 8:30-12:45 Presentations + Webcast 12:45-13:45 Buffet Lunch 13:45-15:00 On Site 10:00-10:15 Break 11:15-11:30 Break PB LSB CEO Welcome and Introduction Life Sciences Business Vision & Strategy Strengthening the Core Business Market Expansion and Brand Leverage Mass Spectrometry in the Clinical Laboratory FEMS Front End to Mass Spectrometry Tecan s Partnering Business Update on OEM Projects Project Acquisition Pipeline Innovation at Tecan Summary and Closing Remarks Instrument Demos Production Tour Tecan Integration Group

4 December 1, 2011 / p4 / Analyst & Investor Day Today s Speakers Welcome and Introduction Thomas Bachmann, CEO Life Sciences Business Frederic Vanderhaegen, Executive VP, Head Life Sciences Business Wendy Lauber, Product Management, Liquid Handling Robotics and Consumables Ralf Bartl, Program Manager FEMS Jody M.W. van den Ouweland, Dept. of Clinical Chemistry, Canisius-Wilhelmina Hospital, Nijmegen, The Netherlands Partnering Business Bernhard Grob, Executive VP, Head Partnering Business Innovation at Tecan Martin Brusdeilins, Executive VP, Head of Development & Operations and CSO Summary and Closing Remarks Thomas Bachmann, CEO

5 Analyst & Investor Day 2011 Introduction Thomas Bachmann, CEO

6 December 1, 2011 / p6 / Analyst & Investor Day Tecan s Products, Business Structure and Markets Life Sciences Business Focused on all end-user activities Products marketed under the Tecan brand through own sales & service organizations and distributors Partnering Business Focused on all OEM activities Products sold by partners under their own brand Life Science Research Diagnostics Forensics Applied Markets

7 December 1, 2011 / p7 / Analyst & Investor Day Transition into the new Tecan Group Organization The new Tecan Group organization was established to support the execution of our growth strategy Strong market orientation with two distinct businesses New organization established and lived; transition went very well Management and skills strengthened Businesses are gaining momentum; positive impacts in markets Life Sciences Business Focused on all end-customer activities LSB 62% of sales* Partnering Business Focused on all OEM activities PB 38% of sales* Development & Operations Science & Technology * Based on 2010 Group sales from continuing operations

8 December 1, 2011 / p8 / Analyst & Investor Day Tecan s Business is Supported by Megatrends Aging population Increased incidence of diseases such as cancer, diabetes, cardiovascular diseases etc. stimulate research and development of novel drugs Increasing volume for routine tests and emerging menu of new specialized tests Emerging Markets More people with increased access to healthcare Major investments in healthcare and life science research Explosion in biological understanding The century of biology Deeper understanding is boosting new research Increasing demand from Applied Markets Forensics: DNA tests as key tool in crime scene investigation Veterinary: Globalization and concentration of animal production Food testing: Safety requirements are becoming increasingly stringent Others: Environment, Crop Science, Cosmetics etc.

9 December 1, 2011 / p9 / Analyst & Investor Day Strategic Drivers for Sustainable Profitable Growth Life Sciences Business Sales Channel Leverage Partnering Business Expanded Project Pipeline Increased Innovation to Drive Organic Growth High-Value Services & Consumables Geographic Expansion into Growth Markets In-Licensing and M&A Opportunities Diversified Industry Segments & Broad Application Spectrum

10 Analyst & Investor Day 2011 Life Sciences Business Frederic Vanderhaegen, Executive Vice President Head Life Sciences Business

11 December 1, 2011 / p11 / Analyst & Investor Day Agenda Vision and Strategy Strengthening the core business Market expansion and brand leverage Sample Prep for Mass Spec as a new innovation focus 11

12 December 1, 2011 / p12 / Analyst & Investor Day Life Sciences Business A leading global provider of automated liquid handling and detection solutions with an added focus in the clinical mass spectrometry workflow Research Laboratories: Academic & commercial discovery and development Clinical Laboratories: Biological sample preparation & automation Applied markets: Environmental & forensics,

13 December 1, 2011 / p13 / Analyst & Investor Day Life Sciences Business - a global organization 33 Application specialists 122 Sales representatives 45% of total LSB employees more than 1/3 of Tecan Group employees 223 Customer supports

14 December 1, 2011 / p14 / Analyst & Investor Day Covering a wide range of research and IVD workflows Genomics Gene Synthesis Sample Prep Assay Analysis Sequencing, Amplification Gene Gene Sequencing, Molecular Amplification Gene Gene SNP & WGA Molecular & Purification Cloning Expression SNP & WGA Diagnostics & Purification Cloning Expression Analysis Diagnostics Analysis Expression Expression Profiling Profiling Proteomics Protein Protein Production Production Protein Protein Purification Purification Modification & Formulation ADME & ADME & Functional Functional Assays Assays Protein & Protein & Biomarker Biomarker Identification Identification Diagnostic Immunoassay & Biomarkers Cell Biology Cell Cell Isolation Isolation Cell Cell Expression Expression Cell Passage Cell Passage & Production & Production Localization & Translocation Functional Functional Assays Assays High Content High Content Screening Screening Cytometry Cellular Molecular Diagnostics Cell Typing & Chemistry Small Molecules Small Molecule Small Molecule Synthesis & Synthesis & Combichem Combichem Small Molecule Purification & Identification Activity & Activity & SAR Assays SAR Assays ADMET & ADMET & Tox Assays Tox Assays Production Production QA/QC QA/QC ICD & Clinical Chemistry blue border line boxes: product & process red border line boxes: IVD segments

15 December 1, 2011 / p15 / Analyst & Investor Day Structure of Tecan s current Life Sciences Business Sales by product segment 23% 9% 37% Biopharma LIHA CD LIHA DETE 19% 12% Service Consumables Sales by geography 7% 12% 44% Europe US Japan 37% Asia Pacific

16 December 1, 2011 / p16 / Analyst & Investor Day Why refine our strategy? Tecan s current core market is estimated to grow at low single digits and competitive pressure is expected to increase Tecan wants to outpace market growth Tecan has successfully focused on developing complex, high-end platforms - yet, a niche market Microarray-based technologies are being replaced by Multiplex PCR and Next Gen Sequencing Tecan did not fully capture growth potential from emerging countries Tecan needs to pursue new adjacent opportunities, beyond liquid handling and readers to reach double digit growth in Life Sciences Business

17 December 1, 2011 / p17 / Analyst & Investor Day Strategic priorities The strategic review process identified 4 areas of focus: Core & Prioritized Adjacencies High-end platform HP & Attana Australia & China Sample prep for Mass Spec Adjacencies in scope: assessed, validated, selected

18 December 1, 2011 / p18 / Analyst & Investor Day Agenda Vision and Strategy Strengthening the core business Market expansion and brand leverage Sample Prep for Mass Spec as a new innovation focus 18

19 December 1, 2011 / p19 / Analyst & Investor Day New high performance plate reader infinite M1000 Pro Multimode plate readers are one of the fastest growing segments within the lab automation market Instruments The new M1000 Pro multimode reader positions Tecan to exploit this potential and accelerate growth with a unique set of customer benefits: Compatibility with Tecan s patent pending µl analysis tool Nanoquant - saves precious samples and analysis time Tecan s most flexible Quad4 Monochrometor -based microplate reader for drug discovery and assay development

20 December 1, 2011 / p20 / Analyst & Investor Day Why is Alphascreen important to Tecan? Instruments Alphascreen is a widely applicable assay (chemistry) platform for drug discovery and applied research applications Alphascreen assays offer researchers high sensitivity combined with a significantly simplified worklflow The use of Alphascreen assay platform is projected to double within the next 3 years 1* The unique Tecan solution on infinite M1000 Pro addresses key customer needs in both drug discovery and research applications and opens up both growth areas for Tecan 1* Source HTStec: Multi-Mode Microplate Reader Trends 2011 New Alphascreen read mode expands market reach into advanced drug discovery applications

21 December 1, 2011 / p21 / Analyst & Investor Day Air Displacement Pipetting Technology for the Freedom EVO Disposable tip only system: Reduced risk of contamination Freedom EVO Higher throughput: No washing steps in-between pipetting steps Lower maintenance costs: No tubing and valves for the liquid path More convenient: No liquid logistics for system liquid and waste compared to liquid displacement technologies By delivering the best of both worlds, Tecan increases its addressable market

22 December 1, 2011 / p22 / Analyst & Investor Day Customized Solutions High throughput sample preparation for flow-cytometry Freedom EVO Customer: Pharma project / Japan Industry: Contract Research Laboratory Revenue: 1.9 Mio. CHF Customized Solutions continue to strengthen our position in high-end automated solutions

23 December 1, 2011 / p23 / Analyst & Investor Day Customized Solutions Physiology monitoring of microbiological cultures: Freedom EVO Customer: Industry: Revenue: Gov. project / France Academic Laboratory 470 k CHF Customized Solutions enable unique applications via specialized hardware development

24 December 1, 2011 / p24 / Analyst & Investor Day Sample aliquoting for Biobanking applications Biobanking is currently growing driven by population based Biobanks and Pharma biobanks Freedom EVO Tecan well positioned thanks to: Presence in key reference labs such as UK Biobank and the Karolinska Biobank Tube inspection unit TIG expertise Partnership with reagents providers Tecan well positioned to capture Biobanking growth

25 The new Tecan Myrius powered by MyControl December November 1, 19, / / p25 / / Analyst && Investor Day 30 November, 2011, p 25 Myrius Strategy for Success

26 December 1, 2011 / p26 / Analyst & Investor Day Myrius Value Propositions to our Customers Platforms Simple user interface with integrated touch screen Web based technologies for monitoring, providing a walk-away system Instant pipetting technology on the touch screen allowing real-time action The Myrius Platform fulfills unmet market needs and brings value to our customers

27 December 1, 2011 / p27 / Analyst & Investor Day Myrius Value Propositions to our Customers Platforms Trans ROMA allowing the connection of 2 pipetting platforms True parallel processing with Trans ROMA Transport (lateral movements of carriers between chassis) The Myrius Platform fulfills unmet market needs and brings value to our customers

28 December 1, 2011 / p28 / Analyst & Investor Day Myrius Value Propositions to our Customers Platforms Higher Deck capacity compared to Freedom EVO Easy integration of 3rd party devices; increases TIG profitability Modular arm configuration and worktable concept Integration of detection devices and Tecan modules The Myrius Platform fulfills unmet market needs and brings value to our customers

29 December 1, 2011 / p29 / Analyst & Investor Day New Consumables products ml trough for maximum reagent recovery Sterile Purity Disposable Tips Filtered MCA 384 tips in additional sizes 5ml Disposable Tip for Liquid Handling Arms Consumables February 2011 May 2011 September 2011 October 2011 Life Science Research Clinical Diagnostics 3rd Party New Consumable products drive growth in all market segments

30 December 1, 2011 / p30 / Analyst & Investor Day Nested Disposable Tips for MCA96 Product launched: January 2009 Proprietary product developed by and exclusively sold through Tecan Consumables Approximately 100 MCA 96 systems sold annually mio. tips MCA96 Disposable Tips sold New consumable product lines as growth drivers in Life Science Research market segment

31 December 1, 2011 / p31 / Analyst & Investor Day New Consumables products Tecan QC Kit in conjunction with market leader Artel enables new Service business opportunities Consumables Kit components Consumables Highly Microplates Precise Reagents: Dye solutions Color Tecan Tecan Microplate reader Software Fully Integrated Optical Microplate Dye Solution Reader Software Calibrated Highly precise, calibrated and Barcoded barcoded optical microplates in 96&384 well format. Manufactured by Corning, co-branded with Tecan and Artel logo, distribution by Tecan. Tecan and Artel Color dye solution, manufactured by Artel. Co- Co-Branded branded packaging, distribution for Tecan products by Tecan. Infinite F50 Infinite F50 entry level Infinite for 96 well F200 plate Infinite F200 mid level Sunrise for 384 well plate Sunrise: already validated by Artel Embedded into Freedom EVOware Software Analysis software consisting of Artel DLL as core, embedded into EVOware SW. Tecan QC kit includes reagents and consumables that enable more revenue pull through from our platforms.

32 December 1, 2011 / p32 / Analyst & Investor Day Customer Service Customers rely on our Service Our instruments are integrated in highvalue lab processes and workflows preparing assays, performing measurements of those assays, and producing results Downtime = lost production time = loss of money and information customer interactions per year Helpdesks and Expertlines in US and Europe and 180 Field Service Engineers and Specialists Service is a Tecan attitude and a profitable business

33 December 1, 2011 / p33 / Analyst & Investor Day What is Service? Hardware support Installation and warranty Preventive maintenance and repair Customer Service Installation- and operational qualification Applications support Set-up and support during the lifetime of the instrument Understanding the customer and helping him achieve his goals Training the customer To get the maximum out of his laboratory solution Supporting our customers throughout the lifetime of their instrument

34 December 1, 2011 / p34 / Analyst & Investor Day Agenda Vision and Strategy Strengthening the core business Market expansion and brand leverage Sample Prep for Mass Spec as a new innovation focus 34

35 December 1, 2011 / p35 / Analyst & Investor Day Strengths of Tecan Sales and Service Channels Tecan is global leader in laboratory automation for over 30 years With an established Sales and Service network in over 50 countries Following our growth strategy, we are leveraging these strengths by offering innovative 3 rd party products to expand and complement our product portfolio In 2011, we have established partnerships with HP and Attana to bring their products to the Life Science Market

36 December 1, 2011 / p36 / Analyst & Investor Day Direct Digital Titration Generation of IC50 Curves The IC 50 is the concentration of an inhibitor where the response (or binding) is reduced by half IC 50 curves are used to determine and rank the potency of a series of test compounds Compounds are diluted in a series of steps Tested in a biological assay that measures their effect Receptors Enzyme assay Ion channel Compares a series of IC 50 s against a standard compound for a particular target to determine a compound s relative potency Introduction to the HP D300 Digital Dispenser Simplified solution for drug titrations in the Drug Discovery Market

37 December 1, 2011 / p37 / Analyst & Investor Day HP Value Proposition Reduce cost by saving on intermediate plates, tips, DMSO and head count Simplifies the workflow and reduces the amount of time required to prepare a plate Helwett Packard Preserves precious compound Give labs many more options for plate formats and the types of experiments that could be run Improves scientific results Drug concentrate HP Direct Titration Bio assay with titration series Drug formatting Daughter plate replication Diluent & plate preparation Intermediate dilution in media or aq. Serial dilution operations Tape/Untape; Mix; Shake; Spin; etc; Reagents Read Bio assay workflow Simplified solution for drug titrations in the Drug Discovery Market

38 December 1, 2011 / p38 / Analyst & Investor Day Early Access Customer Testimonials For me, it really does revolutionize the way we do drug discovery taking the process and bringing it back to the researchers is a real tremendous advance, Helwett Packard - Robert Jordern, SIGA Technologies Silicon Valley / San Jose Business Journal March 4, 2011 Robert Jorden, SIGA Technologies Digital titration replaces analog serial dilution; the control of discrete numbers of drops in every well independently enables innovative experimental designs. Makes the theoretical practical - Dan Thomas, GSK The Impact of Non-Contact Picoliter Dispense Technology in the Elimination of Serial Dilution; SBS, 27.March The Voice of the Customer from the Biotech Market

39 December 1, 2011 / p39 / Analyst & Investor Day Agenda Vision and Strategy Strengthening the core business Market expansion and brand leverage Sample Prep for Mass Spec as a new innovation focus 39

40 December 1, 2011 / p40 / Analyst & Investor Day China Strategy Fueled by public sector spending and increasing desires for worldclass research capabilities, Tecan s potential market in China is growing at a CAGR of 18% Tecan used a robust strategic process to identify most attractive segments to generate above market growth Prioritization Criteria Market size Growth rate Tecan position Competitive intensity

41 December 1, 2011 / p41 / Analyst & Investor Day Tecan will expand its business in China pursuing a 4 steps plan 1 2 Enhance direct sales capabilities Enhance direct service capabilities Establish direct sales model for Academia & key Blood Bank & Applied Market customers Create application support capabilities Strengthening relationship with strategic distributors Create universal service interface in China Strengthen direct service team Localize disposable sourcing partnership 3 4 Execute KOL & marketing strategy Go Local : Create local development & manufacturing capabilities Develop relationship with industry Key Opinion Leaders Create center of expertise for automation solutions Expand our marketing activities Partner with local player to develop local capabilities Prioritize & determine feasibility to localize operations in China

42 December 1, 2011 / p42 / Analyst & Investor Day China go-to-market Enhance direct sales capabilities Enhance direct service capabilities Execute KOL & marketing strategy Through building up the network of local dealers, Tecan reduces the reliance on single distributor and penetrate the market more effectively at regional level Shift in sales model drives increase in transfer pricing levels We are tripling our presence in China over the next 3 years Key opinion leader and brand building Tecan Regional distributor Local dealer Current margin structure Future margin structure 4 Go Local : Create local development & manufacturing capabilities Distributors

43 December 1, 2011 / p43 / Analyst & Investor Day KOL refers to an independent expert who is not officially related to Tecan but has a strategic relationship with Tecan to drive customers preference 1 Enhance direct sales capabilities Academic Leader Product Branding 2 End User Influencing Users Enhance direct service capabilities Decision maker Technology Adoption 3 Execute KOL & marketing strategy Regulatory Authority Policy Formulation 4 Go Local : Create local development & manufacturing capabilities Related Organization Influencing Law-making Influencer Industry Standard Establishment

44 December 1, 2011 / p44 / Analyst & Investor Day Agenda Vision and Strategy Strengthening the core business Market expansion and brand leverage Sample Prep for Mass Spec as a new innovation focus 44

45 December 1, 2011 / p45 / Analyst & Investor Day Mass Spectrometry in the Clinical Laboratory Strengths, Applications, Challenges JMW van den Ouweland, PhD Dept. of Clinical Chemistry Canisius-Wilhelmina Hospital Nijmegen, The Netherlands

46 December 1, 2011 / p46 / Analyst & Investor Day Overview brief overview of LC-MS LC-MS by SWOT analysis areas of application drivers of adoption

47 December 1, 2011 / p47 / Analyst & Investor Day Historical perspective immunoassays PCR mass spectrometry 1970s 1980s 1990s electrospray ionisation (ESI) (Fenn 1980) Increasing use of LC-MS in clinical laboratories over the last years

48 December 1, 2011 / p48 / Analyst & Investor Day LC-MS : step by step SAMPLE PREPARATION - dilute & shoot - protein precipitation - liquid-liquid extraction - solid phase extraction - immunoaffinity purification CHROMATOGRAPHY -GC -LC MASS SPECTROMETRY - quadrupole single vs tandem ( sensitivity, dynamic range) -ion trap -time of flight

49 December 1, 2011 / p49 / Analyst & Investor Day LC-MS by SWOT Analysis

50 December 1, 2011 / p50 / Analyst & Investor Day high sensitivity Strengths high specificity

51 December 1, 2011 / p51 / Analyst & Investor Day Sensitivity & specificity Herold et al. Clin Chem 2003;49:1250 Rosner et al J Clin Endocrinol Metab 2007;92:405 LC-MS/MS is the method of choice for the measurement of certain steroid hormones, particularly for those which rely on accurate and specific measurement at low concentrations.

52 December 1, 2011 / p52 / Analyst & Investor Day Specificity Local Cortisol (μg/dl) R 2 : 0.58 Average bias nmol/l Intensive Care Medicine 2009;35: M. Vogeser

53 December 1, 2011 / p53 / Analyst & Investor Day Specificity R 2 : 0.58 Average bias nmol/l M. Vogeser

54 December 1, 2011 / p54 / Analyst & Investor Day Strengths high sensitivity high specificity near reference methodology in routine setting (isotope-dilution) high speed of development at low costs of new assays when compared to immunoassays by IVD companies low costs per sample in terms of reagents versatility possibility to measure multiple analytes in the same sample simultaneously compatible with automated sample handling configurations

55 December 1, 2011 / p55 / Analyst & Investor Day Weaknesses high instrument costs ( ,- for LC-MS/MS) - high test volume needed for cost-effective operation serial (batch-wise), non random-access operation need for highly skilled personnel for method development, validation, operation and troubleshooting absence or limited availability of CE/IVD approved reagent-kits limited sample throughput in conventional set-up lack of clearly defined quality regulations limited experience of IVD requirements from MS vendors

56 December 1, 2011 / p56 / Analyst & Investor Day Opportunities progress towards more user-friendly instruments (with integration of all components into a single system) broader availability of CE/IVD approved kits for LC-MS/MS analysis adoption of MS technology by major IVD companies quantitative measurement of peptides and proteins profiling of metabolically related metabolites (context)

57 December 1, 2011 / p57 / Analyst & Investor Day Threats speed of development of new instruments largely driven by sensitivity needs > hard to keep up with (e.g development of commercially available kits) and requires regular adaptation of routine practice growing difficulty finding (skilled) technicians (and experience at an academic level) lack of commitment from major IVD companies regulatory bodies applying restrictions on using laboratory-developed tests (LTDs or home-brew ) assays for diagnostic purposes competition from innovations in immunoassays or from the introduction of new technologies

58 December 1, 2011 / p58 / Analyst & Investor Day Areas of Application in the Clinical Laboratory Metabolic disorders ( e.g. acylcarnitines and amino acids in new born screening) Therapeutic drug monitoring (e.g. immunosuppressants, antidepressants) Drugs of abuse and pain-management testing (e.g. amphetamines, benzodiazepines) Endocrinology (e.g. steroids, catecholamines)

59 December 1, 2011 / p59 / Analyst & Investor Day 25-OH vitamin D measurement by LC-MS High prevalence of vitamin D deficiency, with recognition of its importance in skeletal as well as in non-skeletal disease, including autoimmune-, infectious- and cardiovascular disease. 25OHD testing important for diagnosis of vitamin D deficiency and monitoring of vitamin D supplementation. With annual doubling of requests for 25(OH)D over the last 3-5 years, it has become the number one LC-MS/MS test in many clinical laboratories worldwide. Immunoassays show cross-reactivity towards other major circulating vitamin D metabolites and are prone to matrix influences. LC-MS/MS measures 25OHD3 and 25OHD2 independently.

60 December 1, 2011 / p60 / Analyst & Investor Day Vitamin D requests vitamine D CWZ number year workload -> sample preparation and analysis time

61 December 1, 2011 / p61 / Analyst & Investor Day Sample preparation on-line SPE Costs (ROI) semi-automated sample prep manual 96-wells format manual manifold

62 December 1, 2011 / p62 / Analyst & Investor Day Sample preparation for 25OHD by ILE ILE = Immobilized Liquid Extraction rapid and simple sample extraction in 96- well plates no need for centrifugation, vacuum / positive pressure systems or robotics simple pipette & shake approach

63 December 1, 2011 / p63 / Analyst & Investor Day Sample preparation for 25OHD by ILE Manual 96-wells SPE format Manual 96-wells ILE format 4 h sample preparation time 1,5 h sample preparation time 25OHD testing by ILE vs SPE Over 50% time reduction in sample preparation First test results show promising 25OHD (nmol/l) by ILE ILE = 1,0 x SPE 0,799 R= 0,944 (P&B regr.) OHD (nmol/l) by SPE CWZ sept 2011: beta-site test results

64 December 1, 2011 / p64 / Analyst & Investor Day Drivers of adoption of MS in clinical laboratories Platform stability & longevity (freezing instrument design) - less revalidation of assays & retraining for users - decreased regulatory compliance burden for vendors - allows expansion of vendor-developed test menus - enhanced service & support capabilities Automation - development of innovative sample preparation modules - increased sample throughput Ease of use - random-access - walk-away - ready-to-use reagent kits - practicability identical to today s immuno-analyzers

65 December 1, 2011 / p65 / Analyst & Investor Day Drivers of adoption of MS in clinical laboratories continued Peptide & protein quantification in addition to low molecular weight (LMW) analytes Laboratory information management system (LIMS) integration Full support by IVD industry - reagents & instruments - 24 h repair service a step by step process

66 December 1, 2011 / p66 / Analyst & Investor Day Development of immuno-analysers 20 years MS Abbott TDx Abbott IMx Abbott AxSym Abbott ARCHITECT

67 December 1, 2011 / p67 / Analyst & Investor Day Thank you for your attention

68 December 1, 2011 / p68 / Analyst & Investor Day Welcome to the World of Sample Preparation for MS! This presentation gives an overview on Tecan s front-end sample preparation developments for mass spectrometry (the FEMS project) Replica of an early mass spectrometer, Wikipedia

69 December 1, 2011 / p69 / Analyst & Investor Day Global Market for Mass Spectrometry Market Demand for Instruments and Growth Instrument Demand by Industry CAGR=8.6% Market Demand ($ milions) 2009 Main Mass Spectrometry Techniques in Hospitals & Clinical Triple Quadrupole: neonatal screening, screening for various deficiencies and for prescription drug abuse Focus of FEMS MALDI-TOF: Identification of pathogens, such as yeast, bacteria and fungi Existing partnerships for front-end solutions based on Freedom EVO platform Source: Strategic Directions International, Global Assessment Report, 11th Edition, October 2010

70 December 1, 2011 / p70 / Analyst & Investor Day Popular Clinical Tandem LC-MS application examples Endocrinology - Hormones, Steroids, Vitamin D, Catecholamines and Metanephrines Newborn Screening - Fatty Acid Oxidation Disorders, Amino Acid Profiles, Cystic Fibrosis Clinical Toxicology, Pain Management - Amphetamines, Opiates, Cannabis, LSD, Cocaine, Benzodiazepine Immunosuppressants - Cyclosporine A, Tacrolimus, Everolimus, Sirolimus

71 December 1, 2011 / p71 / Analyst & Investor Day The key customer problems we are addressing Eliminate the burden of complicated sample preparation Eliminate laborious and error prone manual workflow Eliminate the risk of home-brew assays Improve robustness and reproducibility Enable standardization Comply with regulatory standards and requirements

72 December 1, 2011 / p72 / Analyst & Investor Day 3 phases to pursue the clinical mass spec growth vector Phase 1 Phase 2 Phase 3 LC-MS Kits Vitamin D Kit + potentially additional Kits Additional Kits Additional Kits Extraction Plate Automated Sample Prep Platform (FEMS) Full Service Solution Platforms Sample extraction Automated assay prep and sample extraction Automated sample prep LC-MS detection

73 December 1, 2011 / p73 / Analyst & Investor Day How will FEMS change the laboratory landscape? Vision Bring MS based testing to the same level of ease of use and performance as immunoassays by providing a panel of sample preparation solutions for clinical workflows. Realization Automation of workflow according to clinical routine standards Off-the-shelf solutions and standardization Impact Reduce required skill set of employees Increase reproducibility of results Increase walk-away time Move away from exotic research lab image towards high-end routine laboratory Reduce labor costs Quality improvement by standardization and validated kits Increased performance Increased routine usability

74 December 1, 2011 / p74 / Analyst & Investor Day Phase1: Faster market entry of the FEMS Project In addition to our dedicated sample preparation solution, we have decided to also develop a DWP based solution for Vitamin D isolation Earlier market entry Get market awareness Proof of principle and technology Vitamin D testing in a DWP for manual use for any commercial LH-robot It is for RUO only (not for IVD) It addresses for batch processes It targets a higher throughput customer base Makes workflows simple to automate

75 December 1, 2011 / p75 / Analyst & Investor Day The Vitamin D on DWP product for launch Extraction plate with reagents to isolate Vitamin D from serum or plasma 96 and 576 tests per kit

76 December 1, 2011 / p76 / Analyst & Investor Day Phase 2: Dedicated sample preparation Automate clinical sample preparation of small molecules LC-MS front-end Full sample/reagent tracking Highest data comparability and reproducibility Enable use by low-skilled personnel Speed up sample preparation/optimize MS runtime Simplify validation by standardization and IVD kits Increase reliability and data quality Consumable-driven business model

77 December 1, 2011 / p77 / Analyst & Investor Day Pre-Launch Activities Activity Symposium/Exhibition 6 Beta-sites executed Launch Q Key features High reproducibility Excellent protein removal Automation friendly Fast Feedback High interest in the technology Speed and simplicity appreciated Requests for testing received "That is what is needed."

78 December 1, 2011 / p78 / Analyst & Investor Day Summary Outstanding consumable-driven product concept Builds on Tecan strengths in sample preparation, liquid handling expertise and the strong Tecan brand Founded on an exciting proprietary technology Significant high margin business potential Reduced time to market with plate format Further successful activities with partners for MS sample preparation

79 December 1, 2011 / p79 / Analyst & Investor Day Agenda Vision and Strategy Strengthening the core business Market expansion and brand leverage Sample Prep for Mass Spec as a new innovation focus 79

80 December 1, 2011 / p80 / Analyst & Investor Day 4 Strategic priorities for Life Sciences Business We identified 4 priorities that balance and leverage existing product portfolio and sales channels Goals: Double digit sales CAGR EBIT improvement Executable Good risk & reward balance Prioritize a major growth vector by developing the MS Sample prep market for DX Product Solutions Technologies Markets Channels Brand Distribution of HP, Attana,... & China expansion Reshape and focus the core business to take market share Base Business Adjacencies Business Models, Skills & Resources Build a culture and infrastructure that better meet market needs + customer expectations

81 Analyst & Investor Day 2011 Partnering Business Update Dr. Bernhard Grob, Executive Vice President Head of Partnering Business

82 December 1, 2011 / p82 / Analyst & Investor Day Contents Tecan s Current Partnering Business Update on various OEM Projects Project Acquisition Pipeline

83 December 1, 2011 / p83 / Analyst & Investor Day Tecan s Growing OEM Business Partnering Business sales Partnering Business as a % of total sales CHF (mio) CAGR: 10.5% CAGR: 14.4% Components Instruments, Service & Consumables H sales up by 1.0% in CHF and 5.7% in local currencies Despite high baseline resulting from special orders in H % H % % 2009 End-user Business OEM Business Total sales for all periods are from continuing operations only

84 December 1, 2011 / p84 / Analyst & Investor Day Structure of Partnering Business Sales by Product Group 7% 9% Liquid Handling Components 29% 55% Detection R&D Funding Sales by Product Class 6% 9% Systems / Instruments Components 17% 46% Service/Spare Parts 22% Plastic Consumables R&D Funding

85 December 1, 2011 / p85 / Analyst & Investor Day Tecan s Broad OEM Offering Integrated Solutions Concepts developed by Tecan and showcased to potential partners Integrating instrument, plastic consumables and enabling reagents Customer Service & Spare Parts Dedicated Solutions P14 P16 Platform-based Solutions OEM Components Under development Plastic Consumables

86 December 1, 2011 / p86 / Analyst & Investor Day Contents Tecan s Current Partnering Business Update on various OEM Projects Project Acquisition Pipeline

87 December 1, 2011 / p87 / Analyst & Investor Day P14: Major OEM Agreement Contract signed in November 2010 Tecan to develop and supply next generation blood-banking instrument Builds upon established OEM partnership with a global leader Program in advanced development stage Addresses various global customer needs Customer feedback on prototype has been positive: The design is appealing and meets our needs It leapfrogs current offerings from a technology and ease-of-use standpoint It s the right for solution for our labs How soon can I have one?

88 December 1, 2011 / p88 / Analyst & Investor Day P16: Major Agreement with New OEM Customer P16 program - agreement with new OEM customer, a global leader in a fast growing field of diagnostics, signed in May 2011 Tecan to develop and supply a next generation dedicated diagnostics instrument Sales potential* estimated to be more than CHF 100m over first 5 years Program on track and in advanced development stage P1 prototypes in intense testing phase, P2 prototypes in assembly process Supply of first instruments for commercial launch projected within the next 24 months after signing the agreement in May 2011 P16 program demonstrates Tecan s ability and track record with automating diagnostics workflows and with industrialization of R&D projects. * Upon successful completion of development

89 December 1, 2011 / p89 / Analyst & Investor Day Enigma: Point-of-care Molecular Diagnostics Tecan will industrialize and deliver commercially manufactured instruments for GSK Europe and Enigma Diagnostic s global market supplies Enigma ML instrument delivers fully-automated results from swab samples in less than 60 minutes at the point of care Eddie Gray, President, Pharmaceuticals Europe of GSK said: The collaboration with Enigma provides GSK the opportunity to offer a more complete solution to the healthcare community and improve patient care through the provision of rapid, state of the art diagnostic tests. Late stage industrialization activities are currently on-going, including validation and verification of production line and ML units are being manufactured and shipped for the start of Enigma s clinical studies.

90 December 1, 2011 / p90 / Analyst & Investor Day Expansion of Hologic s Molecular Laboratory Solutions Sample Extraction HPV Total Solution New: DNA Extraction 24, 48 or 96 samples Various Molecular Tests Launch of Cervista MTA expands Hologic s portfolio and allows it to tap into the lower throughput HPV labs (largely un-served with automation)

91 December 1, 2011 / p91 / Analyst & Investor Day Signed OEM Development & Supply Contracts Liquid Handling Solutions Supply of 9 instruments Under development / recently launched: (MDx) (PoC MDx) (MDx) DNA Extractor High Throughput HTA Mid Throughput MTA Enigma ML Configuration 1 Configuration 2 Configuration 3 P14 P16 (Newborn) (Infec. diseases) NeoPlex4 ELISA platform for MUREX line Detection Instruments Supply of 6 instruments Recently launched: (Genomics) = R&D and validation = commercial supply Qubit 2.0 = anticipated commercial supply

92 December 1, 2011 / p92 / Analyst & Investor Day Our OEM Instrument Partners Liquid Handling Solutions Detection Instruments

93 December 1, 2011 / p93 / Analyst & Investor Day Contents Tecan s Current Partnering Business Update on various OEM Projects Project Acquisition Pipeline

94 December 1, 2011 / p94 / Analyst & Investor Day Project Acquisition Pipeline for OEM Systems Number of Pipeline Projects By Product Group Liquid Handling Detection Instruments new agreements signed since November 2010 Currently, an additional 3 new agreements or amendments to existing agreements for the addition of new products are under negotiation Liquid Handling Systems (excluding Detection instruments): Share of Solution (# of projects) Estimated Annual Sales Potential of Instruments (in million CHF) Dedicated Instruments Platform-based >10 million 5-10 million <5 million

95 Analyst & Investor Day 2011 Innovation at Tecan Dr. Martin Brusdeilins, Executive Vice President Head of Development & Operations and CSO

96 December 1, 2011 / p96 / Analyst & Investor Day Innovation at Tecan The New Organization Combines Research, Development and Operations Life Sciences Business Focused on all end-customer activities Partnering Business Focused on all OEM activities Development & Operations Science & Technology Innovation & Incubation Platform and Product Development Operations

97 December 1, 2011 / p97 / Analyst & Investor Day New Strategic Areas Require a Solid Road Map Approach Product Line Strategy Future Product Portfolio Product Roadmap Platform Strategy Current Technology Portfolio Technology Gap Analysis Technology Roadmap

98 December 1, 2011 / p98 / Analyst & Investor Day Strategy Determines the Product Road Map Example: FEMS Instruments and Components Automation For Plate Automated Sample Prep GC & LC Valves Full Service Solution FEMS Reagents VitD Plate Analyte Panel 1 Analyte Panel 4 3rd party products Analyte Panel 2 Analyte Panel 5 3rd party products Analyte Panel 3 Analyte Panel 6 Analyte Panel 7 Analyte Panel 8

99 December 1, 2011 / p99 / Analyst & Investor Day The Product Road Map Determines the Platform Design Enabling Technologies ET1 ET1 ET1 ET1 ET1 ET1 Platform Collection of plug-and-play fully verified & validated modules to be used in products Products Product1 Product2 Product3 Product4 A platform approach must allow frequent low-cost product launches based on an upfront investment into the platform

100 December 1, 2011 / p100 / Analyst & Investor Day Example - Liquid Handling Platform Enabling Technologies PMP MCA 96 MCA 384 AirLiHa Detector PosID Platform Collection of plug-and-play fully verified & validated modules to be used in products Products EVO 75 EVO 100 EVO 150 EVO 200 EVOLyzer

101 December 1, 2011 / p101 / Analyst & Investor Day Strategic Alignment of Technology Projects Will Cover the Following Segments Corporate Strategy LSB Strategy PB Strategy Core Business

102 December 1, 2011 / p102 / Analyst & Investor Day Seamless R&D and Operations Strategy Product Road Map(s) to educate Product Platform design(s) Mature technologies to enter development portfolio Development of plug & play modules to feed product platforms Allowing for continuous stream of derivative products exiting the development pipeline Risk Management Approach for design and technology transfer With seamless transition into Operations Through early participation of Procurement to support R&D Earliest possible design freeze to allow for early technology transfer into operations

103 Analyst & Investor Day 2011 Summary and Conclusion Thomas Bachmann, CEO

104 December 1, 2011 / p104 / Analyst & Investor Day Market Dynamics Tailwind Megatrends are intact Strong demand in Emerging Markets Continued solid demand in most end markets and regions Headwind Financial crisis and increased recessionary fears Austerity measures in various countries impacting investments in research and healthcare

105 December 1, 2011 / p105 / Analyst & Investor Day Tecan s Diversification Provides a Solid Basis Sales by region 4% Sales by customer segments 12% 12% 47% 37% 14% 16% 58% North America Asia Diagnostics Pharma Europe Other Biotech Academia Sales by distribution channels Sales by product groups 8% 38% 62% 23% 69% End customers OEM customers Instruments Services & spare parts Plastic consumables

106 December 1, 2011 / p106 / Analyst & Investor Day Accelerating Profitable Growth Sales growth in local currencies* Outlook Guidance e 2012e 2013e -2 * Sales excluding Sample Management Life Sciences Business Launch of Air Displacement technology, new detection instruments, Myrius platform, consumables + first FEMS kit Generation of incremental sales with HP and Attana products Going direct in China and expansion into other growth markets Partnering Business Supply of new instruments to generate incremental sales with existing and new customers Continuously expanding project pipeline Growing services and consumables business, building on increased installed base of instruments

107 December 1, 2011 / p107 / Analyst & Investor Day Confirming Outlook for Full Year 2011 Sales FY 2011 Profitability FY 2011 As of March 10, 2011 EBIT Margin of 12-13% Mid-single-digit sales growth in Based on average FX rates of: local currencies 1.30 EUR/CHF and 1.00 USD/CHF Updated guidance as of August 18, 2011 Sales forecast increased Sales growth in local currencies in the high single digits Profitability target confirmed EBIT Margin of 12-13% Based on average FX rates of: 1.20 EUR/CHF and 0.85 USD/CHF

108 December 1, 2011 / p108 / Analyst & Investor Day Summary and Conclusion Megatrends are supporting our business Major development projects underway Several key product launches in 2012 and 2013 Well positioned to capture multiple growth opportunities Life Sciences Business and Partnering Business - two strong pillars for accelerated profitable growth

109 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, exchange rates, legal regulations, market conditions, activities of competitors and other factors outside the Company s control. Tecan Group AG is making all efforts to include accurate and up-to-date information into this presentation. Yet, it cannot be ruled out that omissions or errors might have occurred. Therefore, Tecan Group AG cannot make any representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this presentation. Changes in this presentation can be made any time without notice. All mentioned trademarks are protected by law. Tecan Group AG, Tecan Trading AG, Switzerland, all rights reserved.