UBS Global Life Sciences Conference

Transcription

1 September 20, 2011 UBS Global Life Sciences Conference Tecan Group AG Dr. Rudolf Eugster, CFO

2 September 20, 2011 / p2 / UBS GLSC Contents Introducing Tecan Strategic Growth Drivers Financials H & Outlook

3 September 20, 2011 / p3 / UBS GLSC Introducing Tecan Provider of instruments and workflow-solutions to the world s pharma, biotech, diagnostic and forensic laboratories and companies Our solutions accelerate, automate and enhance the processes in stateof-the-art life sciences laboratories Global leader in laboratory automation for 30 years Leading provider of OEM instruments and components HQ in Switzerland, 3 manufacturing and R&D sites; 1,100 employees; maintaining a sales and service network in 52 countries Listed at the SIX Swiss Exchange (TECN; TECN SW)

4 September 20, 2011 / p4 / UBS GLSC 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

5 September 20, 2011 / p5 / UBS GLSC Contents Introducing Tecan Strategic Growth Drivers Financials H & Outlook

6 September 20, 2011 / p6 / UBS GLSC 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

7 September 20, 2011 / p7 / UBS GLSC Strategic Growth Drivers for the Life Sciences Business Life Sciences Business Innovation New family of liquid handling platforms and new modules New detection instruments Applications & workflow solutions Plastic consumables FEMS Kit and System Geographic Expansion Asia; in particular China South America Eastern Europe Near & Middle East Partnerships for Workflow Solutions Various co-operation models in Life Science Research and Forensics to provide standardized workflow solutions Co-development and co-validation of market leading applications Sales Channel Leverage Leveraging Tecan s sales channels for innovative 3 rd party products Complement product portfolio Realize cost synergies Slide 8 Slide 9

8 September 20, 2011 / p8 / UBS GLSC Applications & Integrated Workflow Solutions Provided by Tecan Provided by Partner Software Services Consumables Life Sciences Business User Interfaces Modules Instruments Quality & Regulatory Reagents 3rd Party Devices

9 September 20, 2011 / p9 / UBS GLSC Leveraging Tecan s Sales Channels Life Sciences Business Tecan and HP to provide faster, more accurate drug screening Companies to market new drug-dispensing solution for pharmaceutical testing Tecan will provide exclusive sales, marketing, service and support for the instruments and consumables Started quoting and taking orders; first shipments in a few weeks Exclusive distributor agreement for Attana's biosensor instruments and assay technology in North America Attana s biosensor technology allows in-depth analyses of molecular interactions in a wide variety of research applications Begun marketing in H1 2011

10 September 20, 2011 / p10 / UBS GLSC Strategic Growth Drivers for the OEM Business Partnering Business Today majority of OEM market is captive, i.e. instruments developed by IVD & LSR companies Trend towards outsourcing Focus on faster time to market, cost and existing service network Innovative research technologies transitioning into regulated Diagnostics OEM sales Components CAGR: 10.5% CAGR: 14.4% Instruments, Services & Consumables OEM Market ~$ 6bn* ~10%* ~$ 8bn* ~20%* captive addressable open market 1 *Tecan estimates; 1 open market is excluding clinical chemistry analyzers OEM as a % of total sales OEM Business 30.8% End-user Business 37.8% 43.7% CHF (mio) H Total sales for all periods are from continuing operations only

11 September 20, 2011 / p11 / UBS GLSC Tecan s Broad OEM Offering Integrated Solutions Concepts developed by Tecan and showcased to potential partners Integrating instrument, plastic consumables and enabling reagents Partnering Business Customer Service & Spare Parts Dedicated Solutions P14 P16 Platform-based Solutions OEM Components Under development Plastic Consumables

12 September 20, 2011 / p12 / UBS GLSC P14 & P16: Two Major OEM Agreements Partnering Business P14 (announced 11/2010) Building on established partnership with global diagnostics company Tecan to develop and supply a next generation dedicated diagnostics instrument and a corresponding plastic consumable Tecan is pre-financing the development costs; 50% repaid by the diagnostics company upon launch and 50% one year after launch Sales potential* estimated to be more than CHF 80m over first 5 years (= purchase commitment) Supply of first instruments for commercial launch expected in late 2012 P16 (announced 05/2011) Agreement with new OEM customer, a global leader in a fast growing field of diagnostics Tecan to develop and supply a next generation dedicated diagnostics instrument Development fully funded by the diagnostics company Sales potential* estimated to be more than CHF 100m over first 5 years Supply of first instruments for commercial launch expected within the next 24 months after signing the agreement * Upon successful completion of development

13 September 20, 2011 / p13 / UBS GLSC Partnering Business Signed OEM Development & Supply Contracts Liquid Handling Solutions Supply of 9 instruments Under development / recently launched: (PoC MDx) (MDx) (Newborn) P14 (Infec. diseases) P16 Detection Instruments Supply of 6 instruments Recently launched: (MDx) (Genomics) DNA Extractor High Throughput HTA Mid Throughput MTA Enigma ML Configuration 1 Configuration 2 Configuration 3 NeoPlex4 ELISA platform for MUREX line Qubit 2.0 = R&D and validation = commercial supply = anticipated commercial supply

14 September 20, 2011 / p14 / UBS GLSC Our OEM Instrument Partners Liquid Handling Solutions Partnering Business Detection Instruments

15 September 20, 2011 / p15 / UBS GLSC Strategic Growth Driver: Services & Consumables Services & Consumables sales S&C as a % of total sales Life Sciences Business Partnering Business CHF (mio) Services Consumables Services & Consumables Instruments Examples for sales per year: Diagnostics: CHF 10-15K (e.g. EVOlyzer, M2000) Forensics: CHF 20K (e.g. HID EVOlution) Life Science Research: CHF 50K (MCA 384 for high-throughput screening) Agreement with HP to commercialize HP D300 Digital Dispenser including consumables Development of application-specific, proprietary consumables underway (e.g. F3/FEMS) Individual process steps taking place directly within consumable itself 31.2% % Total sales for all periods are from continuing operations only 40% Goal 2014

16 September 20, 2011 / p16 / UBS GLSC Contents Introducing Tecan Strategic Growth Drivers Financials H & Outlook

17 September 20, 2011 / p17 / UBS GLSC H1 2011: Strong Business Performance CHF (mio) CHF (mio) Sales Profitability Rest of World Asia Europe North America EBIT Net Profit Substantial sales growth +12.3% in local currencies; +2.2% in CHF Life Sciences Business (end customers) +18.1% in local currencies Partnering Business (OEM customers) +5.7% in local currencies Services & Consumables +13.7% and Consumables only +19.7% in local currencies Order Entry +12.0% in local currencies; +1.3% in CHF; highest Order Backlog in Tecan s history Strong profitability EBIT margin of 11.5% Corresponding to EBIT margin of 13.7% at H constant currencies Increased investments in R&D by 2.5% of sales Significantly increased Net Profit margin to 12.8% of sales; EPS at record level Net Added Value Index (NAVI) = (EBIT + personnel expenses)/personnel expenses Results from continuing operations only

18 September 20, 2011 / p18 / UBS GLSC 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

19 September 20, 2011 / p19 / UBS GLSC Next Events 2011: December 1: Analyst & Investor Day 2012: March 8: April 18: Full Year 2011 financial results Annual Shareholder Meeting Contact Martin Braendle Head of Corporate Communications & Investor Relations Phone: +41 (0) investor@tecan.com

20 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.