Berenberg Diagnostics Conference 2014ir.stratec.com/stratec/pdf/pdf_id/421763.pdf · Berenberg...

STRATEC Biomedical AG

Berenberg Diagnostics Conference 2014

London, May 15, 2014

Berenberg Diagnostics Conference 2014 1

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.


Overview and Business Model 1.

The IVD Market 2.

Financials 3.

Agenda

Aspects of Future Growth 4.


Investment Snapshot

• Market leader in automation solutions in the diagnostic industry with installed

base of more than 10,000 systems across over 20 system families including:

- Siemens’ ADVIA Centaur - DiaSorin’s LIAISON XL

- Hologic/Gen-Probe’s PANTHER - bioMérieux’s new VIDAS

• CAGR revenues since 2010: 8%

• Guidance revenues 2014 to 2017: 8% - 12%

• Profitable with revenue of € 128 million in 2013

• Dividend payments raised over 10 consecutive years

“LIAISON XL” for DiaSorin


STRATEC in the IVD Value Chain

Diagnostic

Companies

Blood Banks,

Laboratories Patients

Unique Market Position

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

4


Business Model

• STRATEC provides instrumentation, software and automation solutions

– OEM development and manufacturing

– More than 2,700 fully automated analyzer systems manufactured in 2013

– 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

“PANTHER” for Hologic Gen-Probe


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

• Reliable partnership

– Shortened development time

– Integration of analyzer system and reagents

– Agreed development budget & transfer price

– High commitment by both partners

“Simoa HD 1” for Quanerix



The IVD Market 2.

Financials 3.

Agenda



80%

5%

15%

Reagents / Chemistry Instrument Services

Instrumentation

8

IVD Market Segments

IVD Market: ~ 50 billion USD

High Throughput (number of systems)

Low Throughput (number of systems)

Total instrumentation

~ 7.5 billion USD


IVD Instrumentation Market

Source: Various sources. Excludes glucose test monitors.

25% 27% 29% 30% 32% 34% 36%

75% 73%

71% 70%

68% 66%

64%

-

1

2

3

4

5

6

7

8

9

2009 2010 2011 2012 2013E 2014E 2015E

IVD OEM Market IVD In House Market

2009 - 2015

CAGR 3%

2009 - 2015

CAGR 13%

US

D b

illio

n

Outsourced vs In House Instrumentation Market


Global Top 20 - IVD Companies

Source: IVD News / figures adjusted by acquisitions in 2012 / non-public companies estimated / non-reported sector revenues estimated

Customer STRATEC Data Management Customer STRATEC Instrumentation Not a STRATEC customer

Revenues 2012 (USD billion)

1. Roche Diagnostics 7.4

2. SIEMENS 5.1

3. Abbott Diagnostics 4.3

4. Danaher 4.3

5. Thermo Fisher 3.0

6. Ortho Clinical Diagnostics 2.1

7. Alere 2.1

8. Sysmex 1.7

9. bioMerieux 1.6

10. BIO-RAD 1.4

11. BECTON DICKINSON 1.3

12. Hologic / Gen-Probe 1.2

13. CH Werfen 1.1

14. QIAGEN 0.6

15. DiaSorin 0.5

16. Novartis 0.5

17. Fujirebio 0.5

18. Agilent / Dako 0.4

19. Immucor 0.3

20. Eiken Chemical 0.3



The IVD Market 2.

Financials 3.

Agenda



The accounting methods used in the consolidated financial

statements of the Annual Report 2013 were amended in line with

IAS 8 for the 2013 financial year. The comparative figures for the

previous year (2012) have been adjusted mandatorily. Reference is

made in this respect to the information in Section A of the notes to

the consolidated financial statements. The previous year’s figures

in this presentation (until 2011) have not been adjusted and are

therefore not directly comparable with the figures stated for the

2012 and 2013 financial years.

PLEASE NOTE


Financials at a Glance

(€ million) March 31, 2014 March 31, 2013 Change

Sales 34.4 30.3 + 13.5%

EBIT 5.3* 4.4 + 20.7%

EBIT margin (%) 15.5* 14.6 + 90BPS

Consolidated net income 4.4* 3.6 + 20.8%

Earnings per share (€) 0.37* 0.31 + 19.4%

Key figures after the first three months

* 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term

of the employment contract for a retired member of the Board of Management. Unadjusted EBIT amounts to € 4.4 million; the corresponding

EBIT margin amounts to 12.7%, consolidated net income to € 3.7 million and earnings per share to € 0.31. The effective amount of the liability

due may differ at the time of payment.


Sales

3-Months Sales compared to Annual Sales

€ m

illi

on

16.7 20.2 22.1 28.8 30.3 34.4

79.6

102.0

116.6 122.4

0

20

40

60

80

100

120

140

2009 2010 2011 2012 2013 2014

3-Months Sales as of 03/31

Annual Sales as of 12/31

• Strongest first quarter in

company’s history

• Growth continues in 2014

• Continuously high

development activities

• CAGR since 2010: 8%

128.0


Installed Base & Product Groups

Replacement parts / disposables

Analyzer systems

Development, service and consulting

As of December 31

Installed base (based on a 5 year average life cycle)

Number of analyzer systems delivered

Delivered systems & installed base Relative share by product group

As of December 31

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 20130

2.000

4.000

6.000

8.000

10.000

12.000

14.000

2007 2008 2009 2010 2011 2012 2013


EBIT & EBIT Margin

• Improving EBIT margin at 15.5%*:

- Economy of scale

- Improved gross margin of major

systems

- Stabilized share of sales with

service parts

Full Year EBIT

EBIT margin

As of December 31

EBIT in € million EBIT margin in %

14,7

17,6

21,8

15,6

19,5

5,3

10%

11%

12%

13%

14%

15%

16%

17%

18%

19%

20%

21%

22%

0

2

4

6

8

10

12

14

16

18

20

22

24

2009 2010 2011 2012 2013 Q1/2014*

Q1 EBIT

* 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term

of the employment contract for a retired member of the Board of Management. Unadjusted EBIT amounts to € 4.4 million; the corresponding

EBIT margin amounts to 12.7%. The effective amount of the liability due may differ at the time of payment.


Earnings per Share

19 25 26 29 31 37

103

114

132

106

0

25

50

75

100

125

150

2009 2010 2011 2012 2013 2014

132

€ c

en

t

EPS as of 12/31

• EPS Q1/2014: € 0.37

• Proposed dividend per

share for 2013: € 0.60

Q1 EPS compared to Full Year EPS

17

EPS as of 03/31



The IVD Market 2.

Financials 3.

Agenda



Growth in 2014 and beyond

19

• Revenue Growth:

– Hitting development milestones

– New product launches and ramp-ups

• Business Development:

– Extend innovation leadership

– Evaluate further niches and external opportunities

– Extension of development and manufacturing capacities

• Profitability and Cash flow:

– Reduction in manufacturing costs

– Further reduction of working capital requirements

– Manage development growth

• Market growth:

– New tests and technologies

– Demographic development

– Outsourcing in the IVD industry


Contact

STRATEC Biomedical AG

Gewerbestr. 37

75217 Birkenfeld

Germany

Tel: +49 7082 7916-0

Fax: +49 7082 7916-999

www.stratec.com

Marcus Wolfinger

CEO, Chairman of the Board of Management

[email protected]

Admitted into Deutsche Börse TecDAX® since

November 2010

TICKER

Symbol: SBS.DE

Bloomberg: SBS:GR

Reuters: SBSG.DE

ISIN: DE0007289001

WKN: 728 900

THANK YOU!


Appendix


STRATEC Group


STRATEC Group

STRATEC Group

Data Management Molecular

DNA/RNA Stabilization

&

Sample Preparation

Laboratory Software

&

Data Management Solutions

Instrumentation

Developing &

Manufacturing

Automated Solutions

and Services

> 500 employees across 3 Business Units in 5 Countries


Conversion Accounting Methods

Change in treatment of development cooperations:

• Recommendations by German Financial Reporting Enforcement Panel (DPR)

• Distinction between development cooperations and

proprietary development projects

• Completed during 2013

• Balance sheet:

Inventory Other intangible assets

Contraction of other liabilities through inclusion of milestone payments

Clustering: IAS11 and IAS38

• P&L:

Changes to Amortization Scheme (chronological to quantitative)


Conversion Accounting Methods

Key figures including and excluding amendment items:

Consolidated income statement (€ 000s) 2013

incl.

amendment items

2013

excl.

amendment items

2012 incl.

amendment items

2012

excl.

amendment items

Sales 127,950 129,639 122,667 122,424

EBIT 19,493 20,063 15,578 17,441

Consolidated net income 15,478 15,905 12,449 13,846

Earnings per share (€) 1.32 1.35 1.06 1.18

EBIT margin (%) 15.2 15.5 12.7 14.3


Shareholder Structure & Share

Share IPO Aug. 1998

Capital increase < 10%, Mar. 2002

< 10%, Sep. 2005

Number of shares 11,770,245

Share price (05/13/2014) € 33.26

Market capitalization € 391 million

Family of Hermann Leistner

& their investment company

Treasury stock

Retail investors

Institutional investors

Shareholder Structure (as of: 12/31/2013)

42.0%

25.2%

32.7%

0.1%


Institutional Shareholders

Top 15 as of December 2013

Holder Name Holding

Allianz Global Investors Europe, GER 5.2 %

Threadneedle Asset Management, UK 4.9 %

Montanaro Asset Management, UK 4.8 %

Financiere de l‘Echiquier, FRA 2.9 %

BNP Paribas Investment Partners Belgium, FRA 1.9 %

ING Investment Management Advisors, NL 1.7 %

Skandinaviska Enskilda Banken, DEN 1.4 %

AXA Investment Managers, FRA 1.2 %

Schroder Investment Management North America, USA 1.2 %

Schroder Investment Management, UK 0.9 %

Credit Suisse, CH 0.9 %

Henderson Global Investors, UK 0.8 %

Invesco Asset Management, UK 0.7 %

Otus Capital Management, UK 0.7 %

Fisher Funds Management, NZ 0.6 %


Analyst Coverage

Berenberg Bank

Dr. Scott Bardo

Phone: +44 203 207 7869

Crédit Agricole Cheuvreux

Oliver Reinberg

Phone : +49 69 47897526

DZ Bank

Sven Kürten

Phone : +49 69 744792072

Landesbank Baden-

Württemberg

Volker Stoll

Phone : +49 711 12770568

Bryan, Garnier & Co

Mathieu Chabert

Phone: +33 170 365745

Commerzbank

Daniel Wendorff

Phone: +49 69 13629648

Deutsche Bank

Gunnar Romer

Phone : +49 69 910 31917

HSBC Trinkaus & Burkhardt

Jan Keppeler

Phone : +49 211 9102446


Financial Calendar 2014

05/14/2014 Publication of interim report as of 03/31/2014

05/15/2014 Berenberg Diagnostics Conference, London, UK

06/05/2014 Jefferies 2014 Global Healthcare Conference, New York, USA

06/10-12/2014 UBS Pan European small & midcap conference, London, UK

06/18/2014 Annual General Meeting, Pforzheim, GER


09/03-04/2014 11th Annual Goldman Sachs European Medtech

and Healthcare Services Conference, London, UK

09/22-24/2014 German Corporate Conference, Berenberg Bank and Goldman Sachs, Munich, GER


11/12/2014 HSBC Heathcare Day 2014, Frankfurt, GER

11/19-20/2014 Jefferies 2014 Global Healthcare Conference, London, UK

11/24-26/2014 German Equity Forum, Frankfurt, GER

Subject to confirmation and amendments

Berenberg Diagnostics Conference 2014ir.stratec.com/stratec/pdf/pdf_id/421763.pdf · Berenberg...

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