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Sample & Assay Technologies
1
Investor presentationPeer Schatz, Chief Executive OfficerFirst Quarter 2012
1
Sample & Assay Technologies
22
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, markets, strategy or operating results, including without limitation its expected operating results, are forward-looking, such statements are based on current expectations and assumptions 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, regulatory processes and dependence on logistics), variability of operating results and allocations between business segments, the commercial development of markets for our products in applied testing, personalized healthcare, clinical research, proteomics, women's health/HPV testing and nucleic acid-based molecular diagnostics; changing relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN's
products (including fluctuations due to general economic conditions, the level and timing of customers' funding, budgets and other factors); our ability to obtain regulatory approval of our products; 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 and protect our products from competitors' products; market acceptance of QIAGEN's
new products and the integration of acquired technologies and businesses. For further
information, please refer to the discussions in reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).
Regulation G: Some of the slides in this presentation contain certain summary information about QIAGEN N.V.’s
sales, gross profit, operating income, net income, and earnings per share, 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, which can be found in the Investor Relations section of QIAGEN’s
webpage under www.QIAGEN.com, for information on the Company’s operating income, net income, and earnings per share 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.
2
Sample & Assay Technologies
3
Agenda
QIAGEN review
2011 results
2012 outlook
Appendix
3
Sample & Assay Technologies
44
Pharma
Making improvements in life possible
4
Molecular revolution is only just beginning
How do we secure food supplies and protect
public safety?
Applied Testing AcademiaMolecular Diagnostics
How do we fight diseases
and improve healthcare?
How do we develop
better and safer drugs?
How do we achieve
scientific breakthroughs
even faster?
Sample & Assay Technologies
55
World leader in Sample & Assay Technologies
Enable access to molecular information
Biological sample to digital result
> 500 core products
Consumable kits and instruments
> 500,000 customers worldwide
Molecular Diagnostics
Applied Testing
Pharma
Academia
Innovative power
~2,500 patents
Healthy financial position
Strong cash conversion
Improving margins
2011 key figures (In $ millions)
Net sales 1,169.7 + 4% (CER)
Adjusted net income 234.4 +5%
Adjusted EPS
(In $ per share) 0.98
Employees ~3,900
5
CER –
Constant exchange rates
Sample & Assay Technologies
66
Broad product offering with common purpose
From biological sample to clinical result
6
SAMPLE Technologies ASSAY
TechnologiesBIOLOGICAL SAMPLE
VALUABLE MOLECULAR
INFORMATION
Sample & Assay Technologies
7
Instruments
Products for use with kits
Automating entire workflows
Many detection technologies
Real-time PCR
Pyrosequencing
Isothermal amplification
Hybrid capture
Consumables
> 500 core product groups
Specialized kits with all materials
> 90% of products sold to more than one customer class
Comprehensive product range to support workflows
2011 net sales: $1,169.7 million
7
~85%~15%
Sample & Assay Technologies
88
Operating in attractive markets
8
Applied Testing AcademiaMolecular Diagnostics
2011 sales
($1,169.7 m)
~47%
(Other MDx: ~32%)(U.S. HPV: ~15%)
~7% ~20% ~26%
Long-term growth opportunities +++ +++ ++ +Key customers
Reference labs
Hospitals
Forensic labs
Industrial
Government agencies
Big Pharma
Specialty / Biotech
CROs
Government research
Academic and private labs
Highlights
Personalized Healthcare
Virology
QuantiFERON
HPV
Forensics
Vet and food safety portfolio
GeneGlobe:
Pathway analysis
Biomarkers
Trusted brand
Involvement with breakthroughs
Translational research
Sample & Assay Technologies
9
Molecular Diagnostics
Supporting important treatment decisions
World leader in molecular technologies for human healthcare
Prevention
Profiling
Personalized Health
Point of Need
Top products
QIAsymphony
RGQ
Viral load assays (HIV/HCV/HBV, etc.)
Companion diagnostics
(KRAS/EGFR, etc.)
digene HPV test QuantiFERON®
TB test Esoteric virus panel tests DNA / RNA sample kits PCR assay technologies
Business characteristics
Fastest-growing area of
in vitro diagnostics
Advanced technologies Very low penetration Fragmented market Strict regulations
QIAGEN
advantages
HPV leadership
Broad range of assay tests
(outside U.S.)
Extensive pipeline to build
U.S. testing menu
Automation systems
> 15 companion diagnostic
co-development projects
Sample & Assay Technologies
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Applied Testing
Industrial use of molecular technologies
Rapid growth in fast growing commercial areas:
Human ID / forensics
Veterinary testing
Food safety
Top products
Global leader in human ID
sample kits
Broad range of human ID
assays (outside U.S.)
> 70 food safety assay tests
Veterinary assays for
commercial livestock
Business characteristics
Dynamic growth –
but from small base
Established molecular standards in human ID
Internationalization
Growing demand for veterinary and food safety
Premium to immunoassays
QIAGEN advantages
Industry leader in human ID / forensics
Global presence
Building portfolio in
veterinary and food safety
Mobile testing device
opportunities
Sample & Assay Technologies
11
Pharma
Partner in gene-based
R&D initiatives
Helping set new standards in drug discovery and development
Top products
Sample technologies:
DNA / RNA prep kits Assay technologies:
SABioscience
products
siRNA
/ miRNA
kits Quality manufacturing
Business characteristics
Shift to gene-based R&D Research: Soft results Development: Solid growth
Biotech expansion and
greater use of CROs
Increasing links to academia
QIAGEN advantages
SABioscience
gene
expression assays
Products covering entire R&D continuum
Support basic discovery to
companion diagnostics
Ability to address demands
of global operations
Sample & Assay Technologies
12
Academia
Advancing the understanding of molecular life
Enabling cutting-edge life sciences research and breakthroughs around the world
Top products
Sample technologies:
DNA / RNA prep kits Assay technologies:
SABioscience
disease and pathway analysis
miRNA
/ siRNA
kits
DNA methylation
and
epigenetics
Business characteristics
~ 45,000 public and
private research labs
Largely dependent upon
government funding
Essential innovation driver
for molecular diagnostics
QIAGEN advantages
Origins of QIAGEN High-quality reputation
Proven contributor to major
scientific breakthroughs
Quickly commercializing
new opportunities
Sample & Assay Technologies
1313
Preparing for a new growth phase after disruptions
2007 2009 2011 2013
Expand life sciences leadership and build up MDx Targeted acquisitions Customer relations Global expansion
Growth drivers for next wave
QIAsymphony
Expanding test menu
High-growth markets
Personalized Healthcare
Updatedgrowth plan
Recession impact
HPV uptake in U.S.
R&D funding
13
Project Full Potential:
1. Accelerate sales growth
2. Reallocate resources
Sample & Assay Technologies
1414
Strategic initiatives to drive growth and innovation
Drive platform success
Roll out QIAsymphony
worldwide
Advance QIAensemble
strategy
Leverage leadership in Sample & Assay Technologies
14
Add content
New tests across all customer classes
Broaden geographic presence
Target high-growth emerging markets
Grow efficiently and effectively
Sustained growth and improved profitability
Leverage synergies across customer classes
Best-in-class team and work environment
Molecular Diagnostics
Applied Testing
Academia
Sample & Assay Technologies
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2011 achievements drive 2012 goals
Strategic initiatives 2011 achievements 2012 goals
>550 QIAsymphony
systems
Launch QIAensemble
Decapper
Update QIAensemble
strategy
>750 QIAsymphony
systems
Improve HPV automation
Selected submissions:
KRAS (Erbitux)
KRAS (Vectibix)
Influenza
careHPV
QuantiFERON-TB test
Novel blood cancer assays
Selected submissions:
EGFR (Tomtovok)
artus
CMV
QuantiFERON
CMVBRAFartus
CT/GC
Target high-growth regions: Eastern Europe, Asia, Americas
Grow at a faster pace than 2011
Drive productivity initiatives
Improve margins
Drive platform success
Add content
Grow efficiently and effectively
Broaden geographicpresence
15
Dynamic growth in top 7 EGM
Direct entry in India and Taiwan
Drive sales and earnings growth
Launch productivity initiatives
Reallocate resources
Sample & Assay Technologies
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Driving global QIAsymphony
expansion
Most versatile molecular testing system
Achieved 2011 goal
>550 systems installed
Across all customer classes
60% Molecular Diagnostics
40% Applied Testing, Pharma, Academia
Increasing consumable use
Ambitious 2012 goal
Target: >750 placed systems by end 2012
Significantly expanded lead pipeline
Extending capabilities
Launching software update
FFPE sample processing
Key features for Applied Testing
Reduction in hands-on time
Adding new content
Molecular Diagnostics
Certal bioprocessing
Human ID and food safety
QIAsymphony
placements
Installed base
End 2011
> 550
2008
500
1,500
(QIAsymphony
SP launch)
2012 target
1,000> 750
Ongoing global expansion
16
FFPE –
Formalin-Fixed, Paraffin-Embedded
Sample & Assay Technologies
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QIAsymphony: Across all customer classes
Americas~40%
Europe~30%
Asia-Pacific/Japan~30%
Asia-Pacific/
Japan~10%
Europe~55%
Americas~35%
Applied Testing
Pharma
Academia~40%
Molecular Diagnostics
~60%
>550 QIAsymphony
placements by end 2011
Sample & Assay Technologies
18
QIAsymphony
RGQ: Meeting broad needs
Molecular Diagnostics Applied Testing Pharma Academia
Viral load monitoring
Gene expression analysis
Genetic testing
Pathogen identification
Protein expression screening
Genotyping
Infectious disease testing
Veterinary diagnostics
Forensic testingApplied research
Companion diagnostics
Quality manufacturing
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Sample & Assay Technologies
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QIAsymphony
RGQ: Driving “lean labs”
Typical mid-sized European hospital laboratory
49 molecular tests
Annual volume: ~70,000 tests and growing
Process tests for 8 hospitals and clinics
Issues
Redundant instruments
Administrative tasks
Need for consolidation
Conducted “lean”
analysis
Minimize waste
Consolidate platforms and vendors
Outcome: 38 of 49 tests
now on QIAsymphony
RGQ
Case study: St. Elisabeth Hospital, Tilburg, The Netherlands
19
Assay providers
Com
petit
ors
Com
petit
ors
Past Present
Past Present
Platform providers
Sample & Assay Technologies
20
QIAsymphony
RGQ overview
QIAsymphony
SP QIAsymphony
AS Rotor-Gene Q (RGQ)
Sample & Assay Technologies
21
QIAsymphony
SP/AS system overview
USB portsFor bi-directional data exchange
UV lampDecontaminate the workable and minimize sample cross-
contamination
Assay drawerProvides active cooling PCR assays.
Eluate
drawerProvides a choice of elution including cooling
Waste drawerStores solid and liquid waste separately
Reagent and consumables drawerSupports consumables and 2 reagent cartridges
Sample drawerAccommodates a wide range of
sample input formats
Touch screenFor intuitive operation of
complete system
Network connection
Robotic arm4-channel with tip guards
UV lampDecontaminate the workable and minimize sample cross-
contamination
Separation window and eluate
transfer channelEnables direct transfer of eluates
from the SP to the AS moduleRobotic arm4-channel with tip guards
Reagent and eluates
drawerSupports master mix ,reagents and preracked
consumables
21
Sample & Assay Technologies
22
Other QIAGEN systems
Ongoing menu expansion
22
Molecular Diagnostics
Applied Testing
Pharma
Adding content across customer classes and instruments
Biomarkers Pre-molecular disease testing
BioprocessingForensics /
Food safety
Pathway analysis
QIAsymphony
RGQ
Academia
therascreenartus Ipsogen
Investigatormericon
Certaltherascreenartus Ipsogen
therascreenartus Ipsogen
QuantiFERON-TB QuantiFERON-CMV
GeneGlobe
GeneGlobeQuantiFERON-TB QuantiFERON-CMV
Sample & Assay Technologies
2323
Adding content to automation platforms
Selected key menu submissions
23
QIAsymphony(Marketed)
QIAensemble(In development)
2011submissions
Planned submissions2012
Planned submissions≥
2013
careHPV
artus Influenza
QuantiFERON
tests
therascreen KRAS (Vectibix)
therascreen KRAS (Erbitux)
QuantiFERON
CMV
artus CT/NG
artus CMV
artus HIV
artus HCV
therascreen JAK2
therascreen EGFR
therascreen KRAS (lung)
therascreen BRAF
therascreen BCR-ABL
artus CT/NG
Rotor-Gene Q(Marketed)
Sample & Assay Technologies
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Two KRAS FDA submissions in H1 2011
> 15 co-development projects
Full platform range
QIAsymphony
RGQ
Rotor-Gene
Pyrosequencing
Strong IP EGFR JAK2 PI3K
Meeting FDA standards
Support global trials and commercialization
Content
IndependenceGlobal
presence
Instruments
Manufacturing
Regulatory
Leadership in Personalized Healthcare
Sample & Assay Technologies
2525
Rapid growth in Personalized Healthcare
25
Personalized Healthcare sales2011 estimate: ~$75 million
Co-developmentprojects(Molecular Diagnostics)
Other(Academia / Pharma)
Commercial
biomarker assays
(Molecular
Diagnostics)
Milestone payments
Broad portfolio for solid and hematological
tumors
Sample & Assay Technologies
Biomarker analysis and validation
Automation instruments
Third-party manufacturing (OEM)
Ongoing strong double-digit sales expansion
NEW EGFR biomarker test approved in Japan
(December 2011)
NEW ALK biomarker
(January 2012)
NEW IGH1 / IGH2 biomarkers
(January 2012)
Sample & Assay Technologies
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Leading co-development project portfolio
Selected Personalized Healthcare co-development projects
Project Partner Indication Biomarker Status
Eribitux
(cetuximab)
Colorectal
cancer KRAS Submitted U.S.
(PMA) in H2 2011
Vectibix
(panitumumab)
Colorectal
cancer KRAS Submitted U.S.
(PMA) in H2 2011
PF-00299804
(dacomitinib)
Lung cancer
(NSCLC) KRAS In development
Iressa
(gefitnib)
Lung cancer
(NSCLC) EGFR CE-IVD kit in Europe and
other non-U.S. markets
Tomtovok
(afatinib)
Lung cancer
(NSCLC) EGFR U.S. submission planned
for 2012
Early-stage compound Blood cancer JAK2 In development
Not disclosed Confidential partners Oncology and non-oncology Various In development
Partner of choice: Industry-leading 15 projects under way
26
Sample & Assay Technologies
27
1 Rank order estimates for scientific and commercial potential of development of companion diagnostics in various therapeutic areas, based on both qualitative factors (e.g., expert interviews) and quantitative factors (e.g., data on price premiums for drugs launched in the same therapeutic class). Results should be taken as directional only.
Source: McKinsey Quarterly February 2010
2.8
2.6
2.4
2.22.0
1.8
1.61.4
1.2
1.0
0.8
0.60.4
0 1.4 1.5 1.6 1.7 1.8 1.9 2.5 2.6 2.7Economic potential of companion diagnostics1
Scientific potential of companion diagnostics1
Growth factorsAntihistamines
Diabetes
Asthma
Autoimmune drugs
OncologyAnti-infectives
Anticoagulants
AntipsychoticsCNS drugs
Antidepressants
Statins
Proton pump
inhibitors
Antihypertensives
Anti-inflammatories
Antiarrhythmics
Companion diagnostics going beyond oncology
Sample & Assay Technologies
2828
TB remains a major health issue
QuantiFERON-TB: New gold standard for latent TB detection
Superior to 120-year-old Tuberculin Skin Test (TST)
No impact from BCG vaccination
Only one visit
U.S:, Europe and Japan approval and reimbursement
R&D collaboration with Max Planck Institute (Berlin)
Follow-up PCR-based test
Assess risk for latent TB activation
QuantiFERON-TB: New gold standard
Test group QuantiFERON-TB Gold Tuberculosis Skin Test (TST)
Specificity1 99.2% 65.9%
Sensitivity for active TB 89.0% 76.0%
Bacille
Calmette-Guerin (BCG) vaccination
Unaffected2 20% -
40% are false positive3
Non-TB mycobacterial
infections (NTM)
Mostly unaffected4 In U.S.-born, up to 50% false positive5
28
1
Menzies
D, et al., 2007 2
Mori t., et al., 2004 3
Farhat
M., et al., 2006 4
Anderson P., et al., 2000 5
von Reyn
C.F., et al., 2001
Ongoing strong double-digit sales expansion
“TB is an old disease that never went away, and now it is evolving with a vengeance.”-
Zsuzsanna
JakabWHO regional director Europe (Reuters, Sept 2011)
Sample & Assay Technologies
29
Total market: > $710 million
1)
World Health Organization (Diagnostics for Tuberculosis, 2006)
41
16
Total tests: > 57 million
$340 $370
QuantiFERON-TB: Untapped market potential
Guidelines completed in most countries
U.S. CDC guidelines on latent TB testing
Updated guidelines in other countries
Broad support in clinical publications
QFT expected to be adopted in UK as first-line screening for immigration
Current markets
Healthcare workers / employee screening
Immigration / travel
College / education
Military Future markets
Companion diagnostics
Broad applications TB testing market in developed world1
Latent TB detection critical to reducing active disease burden
Sample & Assay Technologies
30
QuantiFERON-TB Gold target markets
Screening
Immigrants/refugees
Expatriate protection
Community living
Travel medicine
Professions at risk
Government employees
International assistance (NGO, etc.)Technical employees (Oilfield workers,
international service companies, etc.)Managers and family membersRetirement homes, etc.Nursing homesPrisons
Healthcare workers
Transport workers
Public service
AirlinesRailwaysUrban transport companies
PoliceAmbulance crewsFirefightersMilitary
Diplomatic corps
Protection of the
immunosuppressed
Screening
pre-immunosuppressive
treatment
Immune suppressive
conditions
Immune monitoring disciplines
TNFa
blockers
Transplantation
Crohn’s
disease DermatologyRheumatology
DialysisCancerHIV / AIDSHematologyOncology
Clinical patients
Contact tracing
Non-pulmonary TB
Children
Patients with general
symptoms
Public health
Hospitals
QuantiFERON-TB Gold application areas
30
Global addressable market: > 50 million tests
Sample & Assay Technologies
31
Expanding geographic presence
Full-year 2011 net sales by region
Targeting expansion in Eastern Europe and Latin America
48%
34%
17%Asia-Pacific / Japan+8% CER
Europe / Middle East / Africa+7% CER
Americas+2% CER
Brazil
Russia
Future opportunityIndia
2011 direct entryChina
South Korea
Turkey
Mexico
Top 7 emerging markets:12% of net sales / +21% CER
CER –
Constant exchange ratesEMEA –
Europe / Middle East / Africa
31
Sample & Assay Technologies
32
Addressing HPV market dynamics
32
2011
U.S. –
Solidify market leadership
Driving HPV testing conversion
Moving toward ~50% penetration
Guidelines favor HPV / Pap co-screening
Untapped opportunities
Working with customers
Renewing major multi-year contracts
Benefits: Gold standard and switching risks
Providing automation improvements
QIAensemble
Decapper
launched in Q4 2011
Building on HPV status
Blockbuster assay
Strong relations with many labs
Rest of world –
Convert to primary screening
Unrivaled clinical data
Regional actions
Europe: Leader
Latin America: Mexico implementation
Asia-Pacific/Japan: Opportunities
MolecularDiagnostics(non-HPV)
~27%
Pharma~20%
Academia~26%
Applied Testing~7%
$1,167.9 million
MolecularDiagnostics
(HPV)
U.S. ~15%
Ex-U.S. ~5%
All figures at actual exchange rates
QIAGEN sales overview
32
~47%
32
Sample & Assay Technologies
33
HPV leader with clinical data and automation
Comparative performance of selected HPV tests
digene®
HPV testcobas®
HPV testAPTIMA®
HPV test
Co-testing for women ≥30
Sensitivity for CIN 3+ 100.0%1,2 90.0%8 90.9%10
NPV for CIN 3+ 100.0%3 99.7%8 99.8%10
Sensitivity for CIN 2+ 98.0%4 83.2%8 75.0%10
NPV for CIN 2+ 100.0%3 99.1%8 99.0%10
NILM positivity rate 3.99%5 6.7%8 5.0%10
Reflex testing for ASC-US
Sensitivity for CIN 3+ 96.3%6 93.5%8 90.2%10
NPV for CIN 3+ 99.5%6 99.7%8 99.3%10
Sensitivity for CIN 2+ 95.9%6 90.0%8 86.8%10
NPV for CIN 2+ 98.9%6 99.2%8 97.8%10
1. Mayrand
MH et al. N Engl J Med. 2007;357:1579-1588; 2. Clavel
C et al. Br J Cancer. 2001;84:1616-1623; 3. Lorincz
A, Richart
R. Arch Pathol Lab Med. 2003;127:959-968; 4. Salmeron
J et al. Cancer Causes Control. 2003;14:505-512; 5. Castle PE et al. Obstet Gynecol. 2009;113:595-600; 6. Solomon D et al. J Natl Cancer Inst. 2001;93:293-299. 7. Cervista®
HPV HR Package Insert 2009. 8. cobas®
HPV Test Package Insert 2011. 9. ACOG Committee on Practice Bulletins–Gynecology. Obstet Gynecol. 2009;114:1409-1420 10. APTIMA HPV Assay Package Insert 2011 502170 REV A
Gold standard HPV test
>80 m tests shipped
>1 m women in clinical trials
Unrivaled data
Improving automation
Decapper
launch end-2011
Other projects progressing
Driving U.S. market conversion
Moving toward 50% penetration
Renewing multi-year contracts
Worldwide opportunities
Mexico HPV screening
European leader
Asia-Pacific / Japan expansion
33
Sample & Assay Technologies
34
Molecular Diagnostics
~47%(Other MDx: ~32%)(U.S. HPV: ~15%)
+7% CER
Focusing on multiple growth drivers
Applied Testing~7%
+1% CER
Pharma~20%
+4% CER
Academia~26%
+2% CER
Personalized Healthcare: Global expansion
Profiling: QIAsymphony
rollout
QuantiFERON-TB: Building momentum
Ongoing growth in human ID, food safety
Improving instrument sales
Demand for molecular pathway toolsR&D shift to AsiaIndustry consolidation
Translational medicine
Expansion into high-growth markets
Uncertain spending in U.S. and Europe
HPV: Leverage U.S. leadership, expand globally
2011 sales 2012 sales outlook2012 perspectives
34
Sample & Assay Technologies
3535
Sustainable sales expansion
2012: Improving CER growth vs. 2011
2013 onwards: Return to faster growth
Margin improvement
New projects to unlock efficiency gains
End-2013 target: ≥
31% adjusted operating margin
Taxes and capital allocation
Further tax rate reductions
Capital allocation measures under review
Delivering shareholder returns
35
1
2
3
CER –
Constant exchange rates
Focus on maximizing bottom-line growth and delivering shareholder returns
Drive adjusted EPS
growth
Sample & Assay Technologies
36
Gross margin+Site
consolidation- Product mix
+ Pricing strategy
+ Procurement
Levers to improve adjusted operating margin
Adjusted operating income margin overview
2011actual
27%
(Q4: 29%)
2013
target
>29%(Q4: >31%)
Gross margin
R&D
2012
target
~27-28%(Q4: ~30%)
SG&A+ Sales models
+ Shared services
+ Procurement
+Streamlined portfolio
- Clinical trials
+ Procurement
- Product mixInstruments
(QIAsymphony) HPV
- CDx
deals
-
Post-acquisition investments
+ Pricing strategy
36
SG&A+ Sales models
+ Shared services
+ Procurement
R&D
+Portfolio focus
+ Procurement
Sample & Assay Technologies
37
Solid balance sheet
As of December 31 2011 2010
Group liquidity (In $ millions) 275.7 934.5
Net debt (-) / net liquidity (+) (In $ millions) -314.2 +61.5
Shareholder equity ratio 68% 63%
Net debt / adjusted EBITDA ratio 0.9 -0.1
Healthy financial position and strategic flexibility, new credit
facility
Leverage ratio: Net debt / EBITDA
For further information on adjustments, please refer to the reconciliation tables in QIAGEN's
Q4 2011 earnings release or appendices
0.00.2
3.3
2.2
0.4
- 0.1
0.9
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2005 2006 2007 2008 2009 2010 2011
Digene
acquisition
Cellestis
and Ipsogen
acquisitions
Fourth quarter / Full-year 2011 results 37
Sample & Assay Technologies
38
Efficiency project overview
Taking actions to drive growth and innovation
Free up resources and reallocate to strategic initiatives
38
Excellence initiatives
Sales channel initiatives
New pricing framework
Supply chain efficiency
Site review and consolidation
Improved processes
Portfolio focus on growth areas
Procurement
savings
Shared
services
Streamline and delayer
Reduce duplications
Project launched in late 2011
Increase
efficiency
and effectiveness
Areas
of focus
Streamline and delayer organization
(~8 -
10% workforce reduction)
Focus R&D on growth areas
Optimize capacity utilization
Expand shared services
2012 pre-tax savings goal: $50 million
Reallocate to strategic initiatives
$75 m charge in Q4 2011 (Of which $30 m cash)
Additional charge planned for 2012
Commercial
Operations
R&D
Support Services
Organization
Sample & Assay Technologies
39
QIAGEN group debt instruments
Improved financing structure
New revolving credit facility (RCF)
€
400 million signed in December 2011
Very attractive pricing (Initial margin: EURIBOR + 80 bps)2
International bank consortium
5-year maturity
Cancelled old $150 million RCF
Benefits
Extended maturity profile
Increased flexibility
Improved balance sheet efficiency
Repaid term loan
$350 million loan balance due in July 2012
Sources:
Cash on hand
€110 million from new RCFConvertible bond
$145 m
Convertible bond$300 m
Old RCF$150 m
(All undrawn)
Term loan$425 m
Convertible bond$145 m
Convertible bond$300 m
New RCF
$520 m1
(Of which $380 m undrawn)
As of December 31, 2010 As of December 31, 2011
(1)
€400 million revolving credit facility at EUR-USD exchange rate of €1.00 = $1.30(2)
Subject to a leverage-based margin rachet
and other market-standard pricing components / EURIBOR -
Euro InterBank
Offered Rate
39
Sample & Assay Technologies
4040
Track record of growth and innovation
Robust development pipeline
Strong free cash flow
World leader in Sample & Assay Technologies
Driving the dissemination of molecular testing
Key considerations: Strong growth potential
40
Attractive and growing markets
Building leadership in Molecular Diagnostics
Highly competitive offering in Academia, Pharma
and Applied Testing
Capitalizing on diverse growth opportunities
Pioneer in Personalized Healthcare
Expansion into high-growth markets
Sample & Assay Technologies
41
Agenda
QIAGEN review
2011 results
2012 outlook
Appendix
41
Sample & Assay Technologies
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H2 2011: Strong performance
+9% CER sales growth
2011: Progress on strategic initiatives
Drive platform success
Add content
Expand geographic presence
Improve efficiency and effectiveness
2012: Accelerating growth and innovation
Deliver faster sales and earnings growth
Strong finish in 2011 builds momentum for 2012
Full-year 2011 key figures (In $ millions)
Net sales 1,170 + 4% CER
Adjusted net income 234.4 +5%
Adjusted EPS
(In $ per share) 0.98
CER –
Constant exchange rates
Q4 2011 key figures (In $ millions)
Net sales 334.4 + 17% CER
Adjusted net income 73.6 +19%
Adjusted EPS
(In $ per share) 0.31
Fourth quarter / Full-year 2011 results 42
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FY 2011: H1 vs. H2 key results
H1 2011 and H2 2011 total net sales
(Change vs. 2010 periods)
H1 2011 and H2 2011 adjusted net income(Change vs. 2010 periods)
-1% CER
+3%
+7%
Strong H2 2011 results form basis to accelerate growth in 2012
+9% CER1
Fourth quarter / Full-year 2011 results 43
(1)
H2 2011 total net sales include approximately four percentage points of organic growth and approximately five percentage points from the acquisitions of Cellestis
(as of August 29) and Ipsogen
(as of July 12)
H1 2011 H2 2011H1 2011 H2 2011
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In $ millions
(unless indicated) Q4 2011 Q4 20101 Change
Net sales 334.4 286.0 17%
Net sales (CER) 335.7 286.0 17%
Gross profit 201.7 189.0 7%
Adjusted gross profit 229.3 205.5 12%
Operating income -19.6 50.8 -139%
Adjusted operating income 95.6 82.4 16%
Net income -0.4 36.3 -101%
Adjusted net income 73.6 62.0 19%
EPS (In $ per share) 0.00 0.15
Adjusted EPS (In $ per share) 0.31 0.26
Weighted average number of diluted common shares (In millions) 236.7 239.4
Q4 2011
Summary income statement
CER –
Constant exchange rates(1) Net income and EPS include in 2010 a one-time tax benefit of $3.0 million related to the restructuring of
acquired foreign subsidiariesFor further information on adjustments, please refer to the reconciliation tables in QIAGEN's
Q4 2011 earnings release or appendicesNet income and adjusted EPS based on net income attributable to shareholders of QIAGEN N.V.
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Q4 2011
Reconciliation of reported to adjusted figures
In $ millions (except EPS)
Net sales
Gross profit
Operating income
Pretax income
Income
tax
Net income
Diluted EPS(1)
Reported results 334.4 201.7 -19.6 -22.1 21.3 -0.4 0.00
Adjustments:
Business integration, acquisition related and restructuring costs
8.4 83.0 83.0 -29.2 53.8 0.23
Purchased intangibles amortization 18.8 26.4 26.4 -9.2 17.2 0.07
Share-based compensation 0.4 5.2 5.2 -1.2 4.0 0.02
Other non-recurring income and expense 0.6 1.2 -2.2 -1.0 -0.01
Total adjustments 27.6 115.2 115.8 -41.8 74.0 0.31
Adjusted results 334.4 229.3 95.6 93.7 -20.5 73.6 0.31
(1) In $ using 236.7 million diluted shares Table may have rounding differencesNet income and adjusted EPS based on net income attributable to shareholders of QIAGEN N.V.
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Q4 2011
Currency impact
In $ millions ActualConstant
exchange rates (CER)
Change due to currency
Net sales in USD 121.1 121.1 0.0
Net sales in EUR 85.3 85.9 -0.6
Net sales in GBP 22.4 22.5 -0.1
Net sales in JPY 17.8 16.6 1.2
Net sales in other currencies 87.8 89.6 -1.8
Total 334.4 335.7 -1.3
CER –
Constant exchange ratesOther currencies include CAD, TRY, SEK, CHF, AUD, BRL, CNY, MYR,
SGD, KRW, HKD, MXN, INR, TWD
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FY 2011
Summary income statement
In $ millions (unless indicated) FY 2011 FY 20101 Change
Net sales 1,169.7 1,087.4 8%
Net sales (CER) 1,135.8 1,087.4 4%
Gross profit 749.8 715.6 5%
Adjusted gross profit 832.5 779.6 7%
Operating income 99.6 188.5 -47%
Adjusted operating income 319.6 308.2 4%
Net income 96.0 144.3 -33%
Adjusted net income 234.4 222.7 5%
EPS (In $ per share) 0.40 0.60
Adjusted EPS (In $ per share) 0.98 0.93
Weighted average number of diluted common shares (In millions) 239.1 240.5
CER –
Constant exchange rates(1) Net income and EPS include in 2010 a one-time tax benefit of $12.0 million related to the restructuring of acquired foreign subsidiariesFor further information on adjustments, please refer to the reconciliation tables in QIAGEN's
Q4 2011 earnings release or appendicesAdjusted net income and adjusted EPS based on net income attributable to shareholders of QIAGEN N.V.
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FY 2011
Reconciliation of reported to adjusted figures
In $ millions (except EPS)
Net sales
Gross profit
Operating income
Pretax income
Income
tax
Net income
Diluted EPS(1)
Reported results 1,169.7 749.8 99.6 96.2 -1.3 96.0 0.40
Adjustments:
Business integration, acquisition related and restructuring costs
9.6 101.5 101.5 -34.8 66.7 0.28
Purchased intangibles amortization 70.2 96.9 96.9 -32.9 64.0 0.27
Share-based compensation 1.7 19.5 19.5 -4.2 15.3 0.06
Other non-recurring income and expense 1.2 2.1 -8.5 0.9 -7.6 -0.03
Total adjustments 82.7 220.0 209.4 -71.0 138.4 0.58
Adjusted results 1,169.7 832.5 319.6 305.6 -72.3 234.4 0.98
(1) In $ using 239.1 million diluted sharesTable may have rounding differencesAdjusted net income and adjusted EPS based on net income attributable to shareholders of QIAGEN N.V.
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Agenda
QIAGEN review
2011 results
2012 outlook
Appendix
49
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FY 2012 outlook and assumptions
Adjustments to operating income FY 2012
Equity-based compensation (In $ millions) ~21 -
22
Amortization of acquired intellectual property (In $ millions) ~110
Business integration, acquisition, and restructuring (In $ millions) ~30
Adjusted tax rate ~21 -
23%
Weighted average number of fully diluted shares outstanding (Based on $15.00 share price)2 ~239 million
CER –
Constant exchange rates(1)
Total sales is comprised of organic growth as well as the Cellestis
and Ipsogen
acquisitions These expectations do not take into account any acquisitions that could be completed during 2012
(2) Every
$1.00 increase of share price results in ~1 million increase of weighted average number of fully diluted shares outstandingFor further information on adjustments, please refer to the reconciliation tables in QIAGEN's
Q4 2011 earnings release or appendices
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Outlook FY 2012
Total net sales1 +6-8% CER
Adjusted diluted EPS $1.03 -
1.05
Adjusted results are provided to give addition insight into QIAGEN's
financial performance. These are non-GAAP financial measures that QIAGEN believes should be considered in addition to the reported results prepared in accordance with U.S. GAAP, but should not be considered as a substitute. Adjusted diluted EPS excludes equity-based compensation; amortization of acquired intellectual property; business integration, acquisition and restructuring charges; and their respective revisions to the tax rate.
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Q1 2012 outlook and assumptions
Adjustments to operating income Q1 2012
Equity-based compensation (In $ millions) ~5
Amortization of acquired intellectual property (In $ millions) ~28
Business integration, acquisition, and restructuring (In $ millions) ~7
Adjusted tax rate ~26%
Weighted average number of fully diluted shares outstanding (Based on $15.00 share price)2 ~239 million
CER –
Constant exchange rates(1)
Total sales is comprised of organic growth as well as the Cellestis
and Ipsogen
acquisitions These expectations do not take into account any acquisitions that could be completed during 2012
(2) Every
$1.00 increase of share price results in ~1 million increase of weighted average number of fully diluted shares outstandingFor further information on adjustments, please refer to the reconciliation tables in QIAGEN's
Q4 2011 earnings release or appendices
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Outlook Q1 2012
Total net sales1 +8-9% CER
Adjusted diluted EPS ~$0.20
Adjusted results are provided to give addition insight into QIAGEN's
financial performance. These are non-GAAP financial measures that QIAGEN believes should be considered in addition to the reported results prepared in accordance with U.S. GAAP, but should not be considered as a substitute. Adjusted diluted EPS excludes equity-based compensation; amortization of acquired intellectual property; business integration, acquisition and restructuring charges; and their respective revisions to the tax rate.
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QIAGEN trends
2009 2010 2011 2012 estimate
R&D expense (In $ millions) 108 126 131 ~145
Capital expenditures (% of net sales) 7% 9% 7% ~7%
Depreciation (% of net sales) 4% 4% 5% ~5%
Amortization (% of net sales) 8% 9% 9% ~10%
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Agenda
QIAGEN review
2011 results
2012 outlook
Appendix
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QIAsymphony
SP system overview
Sample
1
2
3
4
5
6
7
8
9Sample input
Reagent cartridges
Filter tips
Plastics
Waste compartment
Elution slot 1 (cooled)
Elution slots 2–
4
Lysis
station (heated)
Purification station
1 2
3
4 5
10
7
8 9
6
10 Robotic arm
Input
Lysis Purification
Elution
Reagents and consumables Waste Elution
Transfer
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QIAsymphony
AS system overview
1
2
4
5
6
1
2
3
384 disposable tips Different sizes
Auto recognition
3x PCR output adapters Rotor-Gene RGQ
96 well formats
Capillary formats
Three outputs per run
fully cooled
3x input adapters
Loading reagents
and samples
Active cooling
Reagents / Eluates
drawer Assay drawer
Transfer position
Tip waste
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Employees as of December 31, 2011
Americas Europe AsiaRest of World
Total Q4 2011
Total
Q4 2010 Change
Production 238 583 99 4 924 841 10%
R&D 153 556 36 13 758 740 2%
Sales 511 555 409 34 1,509 1,302 16%
Marketing 55 179 40 7 281 251 12%
Admin 115 270 69 12 466 453 3%
Total 1,072 2,143 653 70 3,938 3,587 10%
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HIV
Human Immunodeficiency
Virus HKD
Hong
Kong
DollarHPV Human Papilloma
VirusID
IdentityIfp
Institute for
Product
QualityINR
Indian RupeeIP
Intellectual
PropertyJPY
Japan YenKRAS
Kirsten rat Sarcoma
Viral
Oncogene
Homolog KRW
South Korean
WonLDT
Laboratory Developed
TestsM MillionMDx
Molecular
DiagnosticsMXN
Mexican
PesoMYR
Malaysian
RinggitNIH
National Institutes of HealthPCR
Polymerase
chain
reactionR&D
Research & DevelopmentRoW
Rest of WorldRGQ
Rotor-Gene QRNA
Ribonucleic
AcidSEK
Swedish
KronaSGD
Singapore
DollarTB
Tubercles
BacillusTRY Turkish New
LiraUS
United States
Adj
AdjustedAUD
Australian DollarBRAF
Serine/Threonine-Protein Kinase
B-RafBRL
Brazilian RealCAD
Canadian Dollar CDx
Companion diagnosticsCE European Conformance MarkCER Constant Exchange RatesCHF
Swiss Franc CMV
Cytomegalovirus CNY
China Yuan RenminbiCT/NG
Chlamydia Trachomatis/ Neisseria
GonorrhoeaeDNA
Deoxyribonucleic acidE EstimatedEBV
Epstein-Barr virus EGFR
Epidermal Growth Factor Receptor EPS Earnings per ShareEU
European UnionEUR
EuroExcl.
ExcludingFDA
Food and Drug AdministrationFX Foreign Exchange GAAP
Generally Accepted Accounting PrinciplesGBP
British PoundHBV
Hepatitis B Virus HCV
Hepatitis C virus
List of abbreviations
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Your contacts
E-mail: [email protected]
Angela SchmidtAssistant
Investor RelationsTel: +49 2103 29 11709Mobile: +49 1520 18 11709E-mail: [email protected]
2012 calendarQ1 results Media release: April 25 (22:00 CET)
Conference call: April 26 (15:30 CET)
Annual General Meeting June 27 (Venlo)
Q2 results Media release: July 24 (22:00 CET)
Conference call: July 25 (15:30 CET)
Q3 results Media release: Oct 29 (22:00 CET)
Conference call: Oct 30 (15:30 CET)
Share informationNASDAQ: QGEN
Frankfurt: QIA
ISIN: NL0000240000
WKN: 901626
John GilardiVice President Corporate Communications and IRTel: +49 2103 29 11711
or +1 240 686 2222Mobile:
+49 1520 18 11711
E-mail: [email protected]
Albert FleuryDirector Corporate Finance and Investor Relations Tel: +1 301 944 7028Mobile:
+1 202 412 3871E-mail: [email protected]
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