Making Improvements in Life Possible · -2-Sample & Assay TechnologiesSafe Harbor Statement:...

Sample & Assay Technologies- 1 -

Making Improvements in Life Possible

Citi2011 Global Health Care Conference

Douglas Liu Vice President Global Operations


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 from 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. In addition certain statements contained in this news release are based on company assumptions, including, but not limited, to revenue allocations based on business segments and/or customer classes. 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 over a specific period and the comparable period, 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 releases 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.

Forward-Looking Statements


World leader in sample and assay technologies

Enable access to valuable molecular information from any biological sample

Playing a pivotal role in molecular biology revolution

Diagnostics are part of solution to escalating healthcare costs

Disseminating molecular technologies into four customer classes

Supporting innovation

Academia

Pharma

Commercializing innovative breakthroughs

Molecular Diagnostics

Applied Testing

Focus on expansion in 2011 to further accelerate growth in 2012

Address high-growth markets (particularly molecular diagnostics)

Expand geographic presence

Build product pipeline

Further improve operational efficiency

QIAGEN at a Glance


Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...

Complexsample

DNAPureanalyte

InformationAssaytechnologies

Target detected

Yes

No

Sampletechnologies

Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins,

Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...

Transforming Biology into Valuable Molecular Information


Components Workflows Automation Molecular information

Leveraging Leadership to Drive Innovation and GrowthPr

oduc

t str

ateg

yM

arke

t str

ateg

y 2006 - 2010

Create customer- specific sales channels

Build critical mass in molecular diagnostics

2010 - future

Molecular Diagnostics:Prevention

Profiling

Personalized Healthcare

Point of Need

Up to 2005

Leadership in Sample & Assay Technologies

2006 - 2010

Develop automated workflows

2010 - future

Expand molecular information on automated workflows

2000 - 2005

Integrate platform technologies into complete workflows

Up to 2000

Leadership in individual platform technologies


Disseminating Technologies Into Four Customer Classes

Sample technologies

AcademiaPharmaAppliedTesting

MolecularDiagnostics

Human healthcare

Research & Development

Life sciences research

Industrial applications (Genetic ID, veterinary, etc.)

Consumables:~85% of net sales

Instruments:~15% of net sales

2010 net sales: $1.09 billion (+22% CAGR)1

2010 adjusted EPS:$0.93 (+15% CAGR)1

1 Compound annual growth rate 2005-2010

Assay technologies

Automated platforms


Most versatile molecular testing system

Sample preparation Assay set up Detection

Endpoint (qualitative) PCRQIAxcel

MultiplexingLiquiChip

Real time (quantitative) PCR

RotorGene

High resolution sequence detection and quantification

PyroMark

QIAsymphony RGQ: Multiple Detection Capabilities


Potential to transform use of molecular diagnostics

Global launch in late 2010, focus on Europe

EU: Expanding range of CE-marked assays

Developing broad assay menu for the U.S.

First submissions in 2011: KRAS, EBV, CMV

Clinical development start for HIV and others

Unprecedented flexibility

Fully modular – expand with laboratories

Comprehensive – approved assays and LTDs

Cost-efficient – flexible sample handling

Utility and convenience

Parallel processing – up to 300 results/shift

Continuous loading – process as available

Random access – enables critical care

QIAsymphony RGQ profile

QIAsymphony RGQ: Extensive Assay Menu on One System


Focus on genetic ID, veterinary, food safety New assays and detection platforms

Leadership underpinned by largest assay portfolio (>120 tests) Profiling: Expansion into hospitals Prevention: HPV market conversion Personalized healthcare: CDx partner of choice Point-of-need: Developing fast, portable systems

Academia

Molecular Diagnostics

Leading technology portfolio Setting standards for new applications Lab automation

Applied Testing

6%

21%

25%

Pharma

Benefitting from molecular analysis R&D Advantage with “Research – Development – Diagnostic” continuum

Leading Customer Positions with Multiple Growth Drivers

48%


Expanding in Molecular Diagnostics: 4 “P” Framework

LABORATORY-BASED TESTING MOBILE TESTING

Prevention

Asymptomatic patients Goal: Early detection

Profiling

Symptomatic patients Goal: Confirm


Pre-diagnosed patients Goal: Guide therapy

Point of Need

No laboratory available Goal: On-site results

Market needs • Large patient groups • Ultra-high throughput• Narrow menu

• Individual patients• Mid-high throughput• Highest flexibility

• Individual patients• Low-mid throughput• Highest flexibility

• Individuals and groups• Low throughput• Versatile tests

Assay technologies

Examples:• Women’s health

(HPV, CT/NG)• Early disease

detection

Examples:• Infectious diseases

(HIV, influenza)

Examples:• Gene mutations

(KRAS, PI3K)• Pathogen

genotyping

Examples:• careHPV• Infections• Influenza

Instruments

Fully automated and integrated systems QIAsymphonyRCS / QIAensemble ESE Technologies



2011

Finalizing portfolio of companion diagnostic projects with pharma partners

Complete first modular U.S. submission of therascreen KRAS test

Advance development of other biomarkers

Gain access to new biomarkers through Alacris

Further strengthen global sales and marketing capabilities

Personalized Healthcare: Building Partnerships

2010

No. 1 position in nucleic acid-based personalized healthcare tests

~$50 M sales contribution in 2010

>15 pharma projects under way in companion diagnostics

therascreen KRAS/EGFR/BRAF/NRAS Pyromark assays launched in Europe

>60,000 disease/pathway-related assays in portfolio from SABiosciences


Profiling: Significantly Expanding Assay Menus

Profiling

2011

Significantly expand assay portfolio in all key regions

Complete potential U.S. submissions for new assays(CMV, EBV, Influenza, ResPlex)

Advance global clinical development, focus on U.S. markets (HIV, HCV, HBV and others)

2010

> 120 diagnostics test available worldwide, including > 60 CE-labeled assays EU launch of QIAsymphony RGQ with broad menu, building U.S. portfolio

Infectious diseases

Transplantation

Molecular biology

Blood-borne diseases

Gained U.S. access to HIV and HCV tests for use on QIAsymphony RGQ


Prevention: Driving Global Adoption of HPV Screening

2011

Further improve market penetration in the U.S., prepare for competition

Seeking Chinese approval for careHPV tests

Advance clinical development of assay menus for prevention

Begin implementing updated QIAensemble strategy

Prevention

2010

Ongoing efforts to drive global use of HPV screening for cervical cancer

U.S.: Doubled market penetration to ~ 40% in three years Physician-focused campaigns

EU: Negotiations to gain reimbursement in several countries

QIAGEN careHPV addressing needs in Asia and Africa


Applied Testing

Pharma

Academia

2011

Food testing:

Expand mericon portfolio (add 12 new assays, GMO, plant, animal ID)

Veterinary:

Expand cador pathogen testing and complete workflow offering

Forensics:

Add Investigator assays and workflow offering, “Identityping” software

2010

Food testing:

Food safety portfolio (added 16 mericon assays, mainly pathogens, workflows)

Veterinary:

Vet cador pathogen detection assays and genotyping, complete workflows

Forensics:

Launched Investigator Human ID PCR test portfolio and workflow

2011

Introduce sample and assay products on QIAsymphony RGQ platform

Focus on quality control of biological therapeutics and vaccines

2010

Launched molecular monitoring tools for drug development

2011

Gain access to biomarker identification technologies (Alacris)

Launch of QIAcxel Advanced for DNA and RNA fragment analysis

Expand SABiosciences portfolio for biomarker discovery

2010

Introduced new Pyromark assays, reagents, upgraded software

Enlarged genome-wide assay portfolio for gene and pathway analysis

Largest portfolio of molecular analysis tools for FFPE cancer samples

Delivering Solid Growth in Other Customer Classes


Expanding Presence in Key Asian Markets

Significant growth potential in Asia

New Delhi

Korea- Seoul

Singapore

Beijing

Malaysia - Kuala Lumpur

Shanghai

Asia

QIAGEN: 12% CER sales growth in 2010 ~ 12% of total sales

Rapid adaption of molecular technologies

China

No. 3 market for QIAGEN

~ 350 associates

Broad operations (Manufacturing, R&D, sales and marketing, etc.)

India

Direct entry in January 2011

Molecular diagnostics and life sciences

Japan - Tokyo

ShenzhenHong Kong

Guangzhou

China

India


10%

15%

20%

25%

30%

35%

2001 2010 2013E

Consistent Focus on Operational Excellence Gains

28%

2013 target>31%

Operational excellence initiatives

Optimization procurement

Streamlining supply chain

Gaining economies of scale - Production - Sales and marketing - General and administrative

Shifting to higher-margin product mix

Sustained improvement in adjusted operating income margin

21%


Cash flow In $ M FY 2010 FY 2009

Operating cash flow 250.8 217.0

Capital expenditures (79.7) (52.2)

Free cash flow 171.1 164.8

Free cash flow computed using net cash from operating activities less capital expenditures

Healthy Financial Position with Strong Free Cash Flow

in $ M

Healthy financial position

Significant resources to support business expansion

Deleveraged balance sheet

End 2010 liquidity: $934 M

2010 acquisitions below usual historical trends

Implications:

Commitment to use resources in support of strategic goals

Various targeted acquisitions under consideration

Operating and free cash flow development

0

50

100

150

200

250

300

FY 2007 FY 2008 FY 2009 FY 2010

Operating cash flow

Free cash flow

Free cash flow excludinginvestments in buildings


Key Considerations: Strong Growth Potential – Low Risk

Focus on expansion in 2011 to further accelerate growth in 2012

Increase market and technology leadership

Drive global rollout of QIAsymphony RGQ

Build assay menus in all customer classes

Expand leadership in companion diagnostics

Strengthen focus on analyzing molecular information

Continue HPV market conversion initiatives, prepare for competition

Consider value-creating acquisitions in line with strategy

Strategicobjectives

2011 goals

Leveraging Sample & Assay leadership to drive innovation and growth

Address high-growth markets (molecular diagnostics)

Expand geographic presence

Build product pipeline

Improve operational efficiency

Attract best talent


Thank you!

Making Improvements in Life Possible · -2-Sample & Assay TechnologiesSafe Harbor Statement:...

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