Berenberg European - ir.stratec.com

Tarrytown, May 23, 2017

Berenberg

European

Conference

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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www.stratec.com 3

AGENDA

OVERVIEW AND BUSINESS MODEL

THE IVD MARKET

FINANCIALS

FUTURE GROWTH

Berenberg European Conference –


www.stratec.com 4

OVERVIEW AND

BUSINESS MODEL



Overview & Business Model Financials The IVD Market Future Growth

5

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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6

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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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



“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



“LIAISON XL” for DiaSorin

“PANTHER” for Hologic


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EXPANDING THE LAB AUTOMATION VALUE CHAIN



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

www.stratec.com


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DIATRON – EXPANDING THE VALUE CHAIN



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

www.stratec.com

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THE IVD MARKET




80%

5% 15%

Reagents / Chemistry

Instrument Services

Instrumentation

12

IVD MARKET SEGMENTS / IVD Market: ~ 50 billion USD in 2015

High Throughput

Low Throughput

Total instrumentation

~ 7.5 billion USD

Market by product type

Number of systems



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


OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET

Total

instrumentation

~ 7.5 billion

USD

13

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




14

A SELECTION OF STRATEC CUSTOMERS

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



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

Overview & Business Model Financials Future Growth The IVD Market

16

FINANCIALS AT A GLANCE


Tarrytown, May 23, 2017 www.stratec.com

(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


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SALES



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


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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


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ADJUSTMENTS



www.stratec.com 20

FUTURE GROWTH




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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


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FINANCIAL GUIDANCE



• 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

[email protected]

TICKER Symbol: SBS.DE

Bloomberg: SBS:GR

Reuters: SBSG.DE

ISIN: DE000STRA555

WKN: STRA55

CONTACT

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APPENDIX

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KEY FIGURES AT A GLANCE

IFRS (€ million) 2012 2013 2014 2015 2016

Sales 122.7 128.0 144.9 146.9 184.9

EBIT 15.6 19.5 24.1 26.9 32.31

EBIT margin (%) 12.7 15.2 16.6 18.3 17.51

Consolidated net income 12.5 15.5 19.8 22.1 25.42

Earnings per share (€) 1.06 1.32 1.68 1.87 2.142

Dividend per share (€) 0.56 0.60 0.70 0.75 0.77

No. of employees 533 546 544 583 976

Total assets 108.5 117.8 137.8 158.9 258

Equity ratio (%) 80.7 82.5 81.3 82.0 55.7

Free cash flow 0.4 13.5 32.9 17.3 -70.4

AS OF DECEMBER 31

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1 2016 figure adjusted for one-off items resulting from transaction activities and related reorganization expenses 2 2016 figure additionally adjusted for financing expenses and tax expenses in connection with the acquisitions of the Diatron Group and STRATEC Consumables,

for one-off items resulting from the tax audit for the 2009 to 2013 assessment periods, and for tax effects relating to reorganization expenses

SHAREHOLDER STRUCTURE & SHARE

SHARE IPO Aug. 1998

Capital increase < 10%, Mar. 2002

< 10%, Sep. 2005

Number of shares 11,860,995

Share price (05/17/2017) € 58.77

Market capitalization € 697 million

Fixed and family ownership

(incl. investment companies)

Treasury shares

Retail investors incl. not

identified institutional investors

Institutional investors

SHAREHOLDER STRUCTURE (as of: 03/31/2017)

~ 41.5%

~ 21.7%

~ 36.7%

~ 0.1%



INSTITUTIONAL SHAREHOLDERS

Holder Name Holding

OppenheimerFunds, USA 5.2 %

Allianz IARD, FRA 5.1 %

Columbia Threadneedle Investments, GBR 5.0 %

Montanaro Asset Management, GBR 2.8 %

BNP Paribas Investment Partners Belgium, FRA 2.5 %

Deutsche Asset Management Investment, GER 2.5 %

Juno Investment Partners, NED 1.6 %

Comgest, FRA 1.2 %

Wellington Management Company, USA 1.1 %

Lupus alpha Asset Management, GER 1.1 %

Schroder Investment Management North America, USA 1.0 %

Amundi Asset Management, FRA 0.7 %

Credit Suisse, SUI 0.6 %

Royce & Associates, USA 0.5 %

BlackRock Asset Management Deutschland, GER 0.5 %

TOP 15 AS OF DECEMBER 31, 2016

A3 Berenberg European Conference –


ANALYST COVERAGE

Berenberg Bank

Jakob Berry

Phone: :+44 20 3465-2724

Deutsche Bank

Falko Friedrichs

Phone : +49 69 91036270

HSBC Trinkaus & Burkhardt

Jan Keppeler

Phone : +49 211 9102446

Landesbank Baden-Württemberg

Volker Stoll

Phone : +49 711 12770568

Warburg Research

Michael Heider

Phone: +49 40 309537280

DZ Bank

Sven Kürten

Phone : +49 69 744792072

Kepler Cheuvreux

Oliver Reinberg

Phone : +49 69 75696140

METZLER Capital Markets

Alexander Neuberger

Phone: +49 69 2104 4366

Oddo Seydler Bank

Igor Kim

Phone: +49 69 92054815



FINANCIAL CALENDAR

06/14//2017 Annual General Meeting, Pforzheim, GER

05/23/2017 Berenberg European Conference, Tarrytown, USA

06/08/2017 Jefferies 2017 Global Healthcare, New York, USA

07/25/2017 Publication of Half-yearly Financial Report H1|2017

08/29/2017 Commerzbank Sector Conference, Frankfurt, GER

09/06-07/2017 14th Annual Goldman Sachs European Medtech and Healthcare Services, London, UK

09/18-20/2017 6th German Corporate Conference, Munich, GER

10/26/2017 Publication of Quarterly Statement 9M|2017

11/28/2017 German Equity Forum, Frankfurt, GER

Subject to confirmation and amendments



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Berenberg European - ir.stratec.com