Post on 12-Jun-2018
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.
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AGENDA
OVERVIEW AND BUSINESS MODEL
THE IVD MARKET
FINANCIALS
FUTURE GROWTH
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OVERVIEW AND
BUSINESS MODEL
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Overview & Business Model Financials The IVD Market Future Growth
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STRATEC AT A GLANCE
Market leader in automation solutions for the
diagnostics industry and translational research
~ 1.000 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 € 184.9 million in 2016 (CAGR revenues since IPO: ~18%)
Revenue growth forecasted
to € 205 - € 220 million in 2017
Dividend payments raised over 12 consecutive years
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Overview & Business Model Financials The IVD Market Future Growth
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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
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Overview & Business Model Financials The IVD Market Future Growth
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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
BUSINESS MODEL
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“Simoa HD-1” for Quanterix Consumable for “Simoa HD-1”
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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
SECURING RETURN ON INVESTMENT
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“LIAISON XL” for DiaSorin
“PANTHER” for Hologic
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EXPANDING THE LAB AUTOMATION VALUE CHAIN
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Analyzer
System
Smart
Consumables sample prep
chemistry Software Reagents Consumables Market
access
Diagnostic companies
• Specialized in development and design of polymer consumables / injection molding
• OEM supplier of smart consumables for diagnostics, life sciences and medical technology applications
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DIATRON – EXPANDING THE VALUE CHAIN
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Hematology
• Leading global OEM developer
and manufacturer of hematology and clinical chemistry analyzers and related consumables for use in both human and veterinary medicine
• Specialized in the fragmented
markets of decentralized diagnostics
• Revenues of ~€ 34 million in 2015
Laboratory Blood bank
Immunoassay
• LIAISON® XL
(DiaSorin)
• ADVIA Centaur® CP
(Siemens)
• Evolis (Bio-Rad)
• Liaison XS* (DiaSorin)
• …
Immunohematology
• GalileoNEO (Immucor)
• TANGO™ Infinity (Bio-Rad)
• MosaiQ* (Quotient)
• …
Molecular
• Panther™ (Hologic)
• Fusion* (Hologic)
• Simoa (Quanterix)
• Invigenius (platform)
• Pure (platform)
• …
Serology
• MosaiQ* (Quotient)
• High throughput multiplexing instrument*
• …
*under development
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Overview & Business Model Financials The IVD Market Future Growth
77%
5% 15% 3%
Reagents / Chemistry
Instrument Services
Instrumentation
Consumables / plastics /
packaging
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IVD MARKET SEGMENTS / IVD Market: ~ 60 billion USD in 2016
High Throughput
Low Throughput
Total instrumentation
~ 7.5 billion USD
Market by product type
Number of systems
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CAGR 2013 - 2018:
IVD Market: 4%
Molecular Diagnostic: 8% Immunodiagnostics: 4%
Hematology: 2% Blood bank: 6%
Source: The worldwide market for In Vitro Diagnostic Tests, 9th Edition.
Market by sector
Overview & Business Model Financials The IVD Market Future Growth
OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET
Total
instrumentation
~ 7.5 billion
USD
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In House
64 %
Outsourced
36 %
In House
73 %
Outsourced
27 %
2010 2015 2020
In House
56 %
Outsourced
44 %
Source: Own estimates based on historical market data and recent industry trends
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A SELECTION OF STRATEC CUSTOMERS
Source: IVD News / figures adjusted by acquisitions in 2012 / non-public companies estimated / non-reported sector revenues estimated
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GLOBAL TOP 20 IVD COMPANIES Revenues 2014 (USD billion)
1. Roche Diagnostics 8.9
2. Danaher 5.0
3. SIEMENS 4.8
4. Abbott Diagnostics 4.7
5. Thermo Fisher 3.3
6. Alere 2.3
7. Ortho Clinical Diagnostics 1.9
8. Sysmex 1.9
9. bioMerieux 1.7
10. BIO-RAD 1.4
11. BECTON DICKINSON 1.3
12. Hologic / Gen-Probe 1.2
13. CH Werfen 1.0
14. Grifols (incl. Novartis diagnostics business unit) 0.8
15. QIAGEN 0.7
16. Diagnostica Stago 0.6
17. DiaSorin 0.6
18. Agilent / Dako 0.6
19. EUROIMMUN ~0.4
20. Immucor ~0.4
… AND OTHER
GAME-CHANGING COMPANIES
(acquired by Bio-Rad in January 2017)
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FINANCIALS AT A GLANCE
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(in € 000s) Mar 31, 2017 Mar 31, 2016 Change
Sales 49.510 31.218 +58.6%
EBITDA1 8.812 5.703 +54.5%
EBITDA margin (%)1 17.8 18.3 -50 bps
EBIT2 6.870 4.530 +51.7%
EBIT margin (%)2 13.9 14.5 -60 bps
Cons. net income2 5.369 3.424 +56.8
Earnings per share (€)2 0.45 0.29 +55.2
Key figures after the first three months
1 2017 figure adjusted to exclude expenses resulting from transaction activities and related reorganization expenses 2 2017 figure additionally adjusted to exclude purchase price allocation-related amortization, financing expenses and
tax expenses in connection with the acquisitions of the Diatron Group and STRATEC Consumables
Overview & Business Model Financials Future Growth The IVD Market
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SALES
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3-Months Sales compared to Annual Sales
€ m
illio
n
29.2 34.4 34.5
128.0
0
20
40
60
80
100
120
140
160
180
200
2013 2014 2015 2016 2017
3-Months Sales as of 03/31
Annual Sales as of 12/31
144.9 146.9
184.9
49.5
31.2
Q1|2017 Sales
• +58.6% to € 49.5 million
• Organic growth +21.1%
• Contribution of Diatron and
STRATEC Consumables
• High volume of development
activities
Overview & Business Model Financials Future Growth The IVD Market
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EBIT & EBIT MARGIN
Q1 EBIT EBIT margin
EBIT in € million EBIT margin in %
4.4
5.3
5.8
4.5
6.9
12%
13%
14%
15%
16%
17%
18%
19%
20%
0
2
4
6
8
2013 2014 2015 2016 2017
EBIT margin affected by
• Product mix
• Diluted margins from new
subsidiaries
• Hiring of staff in connection
with numerous product
developments
As of March 31
Overview & Business Model Financials Future Growth The IVD Market
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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
Overview & Business Model Financials Future Growth The IVD Market
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FINANCIAL GUIDANCE
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• Sales guidance for 2017: € 205 million to € 220 million
• Organic double digit top line growth in 2017
• Profitability in 2017 on a broadly stable level
• Guidance to be updated with H1 results in July 2017
THANK YOU
FOR YOUR ATTENTION!
STRATEC Biomedical AG Gewerbestr. 37
75217 Birkenfeld
Germany
Tel: +49 7082 7916-0
Fax: +49 7082 7916-999
www.stratec.com
ir@stratec.com
Dr. Claus Vielsack
Member of the Board of Management
TICKER Symbol: SBS.DE
Bloomberg: SBS:GR
Reuters: SBSG.DE
ISIN: DE000STRA555
WKN: STRA55
CONTACT
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