QIAGEN - Financials. Roland Sackers Chief Financial Officer. Sample & Assay Technologies -1- QIAGEN Analyst and Investor Day, February 14, 2008

Transcription

1 QIAGEN - Financials -1- Roland Sackers Chief Financial Officer

2 Forward Looking Statements Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, as well as the nucleic acid-based molecular diagnostics, applied testing markets and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including fluctuations for certain events including funding, budgets, and others), difficulties in successfully adapting QIAGEN s products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, the management of intellectual property, and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with or furnished to the U.S. Securities and Exchange Commission (SEC). Regulation G: The following slides contain certain summary information about QIAGEN N.V. s sales, gross profit, operating income, net income, and earnings per share for the forth quarter and fiscal 2007, and the comparable period of 2006, which information is presented on a non-gaap financial measures basis rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN s press release dated February 11, 2008, for information on the company s operating income, net income, and earnings per share for these periods presented on a GAAP basis. Such GAAP-basis information will also be contained in the company s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission. Fiscal Year 2007 Performance on Net Sales & EPS Increased Guidance 1 November 9, 2007 Reported Net sales (US$M) Exceeded EPS (US$) Exceeded 1 based on January 31, 2007 foreign currency exchange rates 2 US$632 million using January 31, 2007 foreign currency exchange rates 3 excluding acquisition, integration and relocation related charges, amortization of acquired IP and equity-based compensation (SFAS 123R) Exceeded on Revenue and EPS, adj. Guidance

3 Summary Income Statement E Based on FX 01/31/ E Growth Revenues (US$M) % 40% Incl. ~ 12% organic 1 Operating margin, adj. 2 25% 28-29% EPS in US$ per share, adj ~24% 1 excluding Digene, excluding egene 2 excluding acquisition, integration and relocation related charges as well as amortization of acquired IP and equity-based compensation (SFAS 123R) Fundamental strength of businesses driving growth Operational Cost Synergies 2008 By Operating Divisions In million US$ COS R&D S&M G&A Total Cost Synergies 10 15% 20 25% 20 25% 45 50% More or Less Evenly Distributed Over All Four Quarters

4 QIAGEN Group Revenue and EPS Growth CAGR = ~31% Revenues in US$m E CAGR = ~19% 70 EPS in US$ E All figures excluding acquisition, integration and relocation related charges as well as amortization of acquired IP and equity-based compensation (SFAS 123R) as well as including a tax benefit of US$ 0.02 in Q QIAGEN Group R&D and Capital Expenditures R&D Expenses (MUS$) Excl. purchased intangible amortization ~ 95 Investing in Next Generation Products and Regulatory Approvals in MDx CAPEX as % of sales E Depreciation & Amortization as % of sales Intangibles Intangibles 9% approx. 9% approx. 11% 10% 6% 4% ~4% 6% 6% 6% ~7% 3% E E

5 Integration well on Track Resources FTE Plan Phase 4 HR, Budget 08, Going Direct Implement new business processes Transfer of projects to line Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Pre- Planing Pre- Closing Post- Closing Implementation Line functions take over all responsibilities Announcement Closing DAY 1 New Budget 2008 and Going direct TODAY Certain integration projects continue -8-89% of Projects Fully on Track or Completed Overall Project Status Number of Projects % 62 Total: 88 Projects 45% of Key Milestones completed % 11% 0% Completed On-track Delayed At-risk Approximately 525 high level project milestones have been identified by the project teams. 45% of these milestones have been completed. -9-

6 Integration Plan IT One Face to the Customer Starting Point QIAGEN Service Solutions QIAGEN Call Center.Network Infrastructure.mySAP ERP.Pivotal CRM.Network Infrastructure.Macola ERP.Salesforce.com CRM Customer Care DIGENE.Consolidate Aug. Dec. Standardize & connect network infrastructure Replace salesforce.com with Pivotal CRM Replace Macola with SAP Route customers into QIAGEN s call center.one Face to the Customer Today Service Solutions QIAGEN Call Center One Face to the Customer Leveraging QIAGEN s Fast, Flexible and State-of-the-Art Aystems Integration Plan IT IT Area Major Phase 1 Milestones Status Network Network Connect global Digene & QIAGEN networks to enable cross-company communication (file & application sharing, , etc.) Merge & standardize networks into QIAGEN standard SAP Direct Sales via SAP (Phase 1) went live January 1 st CRM Going Live with QIAGEN s CRM system January 1 st Web Merge existing Digene websites into QIAGEN Project on track Project finalized

7 Direct Sales via SAP Key facts Involvement of seven legal entities with various distributors across the world Cross-functional project team led by IT ( 64 people total) IT, Sales, Finance, Logistics, Operations Total implemented project tasks: 204 Project implementation time: August - December Success through: multitude of ideas, strategies, philosophies, and requirements were created, evaluated, revised, eliminated, and established. Great commitment from our employees A lot of personal sacrifices to ensure we met deadlines cancelling vacation plans working through the holidays and weekends Go-Live on January 1st - went very smoothly Next steps Leverage remaining opportunities in Operations Manufacturing: Right products in right facilities Logistics: Shipping, carriers Fully deploy and focus combined R&D capabilities New systems and technologies Combined expertise Integrate and expand sales and marketing channels Direct to consumer activities Broadly target physicians and clinicians Regional expansion

8 Questions & Answers -14-