HSBC · 2017. 11. 27. · HSBC Healthcare Day, November 23, 2017 “LIAISON XL” for DiaSorin “PANTHER” for Hologic. 9 THE IVD MARKET HSBC Healthcare Day, November 23, 2017

November 23, 2017

HSBCHealthcare Day

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.

2www.stratec.comHSBC Healthcare Day,

November 23, 2017

www.stratec.com 3

AGENDA

OVERVIEW AND BUSINESS MODEL

THE IVD MARKET

FINANCIALS

FUTURE GROWTH

HSBC Healthcare Day,

November 23, 2017

www.stratec.com 4

OVERVIEW AND

BUSINESS MODEL


November 23, 2017

Overview & Business Model FinancialsThe 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 in 1998: ~18%)

Revenue growth forecasted

to € 205 - € 220 million in 2017

Dividend payments raised over 13 consecutive years

www.stratec.comHSBC Healthcare Day,

November 23, 2017


6

UNIQUE MARKET POSITION

STRATEC IN THE IVD VALUE CHAIN

DiagnosticCompanies

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


November 23, 2017


7

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


November 23, 2017

“Simoa HD-1” for QuanterixConsumable for “Simoa HD-1”


8

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


November 23, 2017

“LIAISON XL” for DiaSorin

“PANTHER” for Hologic

www.stratec.com 9

THE IVD MARKET


November 23, 2017


77%

5%15%3%

Reagents / Chemistry

Instrument Services

Instrumentation

Consumables / plastics /

packaging

10

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


November 23, 2017

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

11

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


November 23, 2017


12

A SELECTION OF STRATEC CUSTOMERS

Source: IVD News / figures adjusted by acquisitions in 2016 / non-public companies estimated / non-reported sector revenues estimated


November 23, 2017

… AND OTHER

GAME-CHANGING COMPANIES

(acquired by Bio-Rad in

January 2017)

GLOBAL TOP 20 IVD COMPANIES Revenues 2016 (USD billion)

1. Roche Diagnostics 9.6

2. Danaher 5.5

3. SIEMENS 5.1

4. Abbott Diagnostics 4.8

5. ThermoFisher 3.3

6. Alere 2.4

7. Sysmex 2.3

8. Ortho Clinical Diagnostics 2.0

9. bioMerieux 1.9

10. BECTON DICKINSON 1.3

11. BIO-RAD 1.3

12. Hologic 1.3

13. CH Werfen 1.0

14. Grifols 0.9

15. Agilent 0.7

16. Diagnostica Stago 0.7

17. QIAGEN 0.7

18. Diasorin 0.6

19. Perkin Elmer 0.6

20. Immucor ~0.4

STRATEC customer

Not a STRATEC customer

www.stratec.com 13HSBC Healthcare Day,

November 23, 2017

FINANCIALS

Overview & Business Model Financials Future GrowthThe IVD Market

www.stratec.com 14

KEY FIGURES - TRACK RECORD


November 23, 2017

Sales in € million

CAGR >10%EBIT in € million

CAGR >11%

1 Adjusted for one-off items resulting from transaction activities and related reorganization expenses

11,0

14,3

11,2

14,7

17,6

21,8

17,619,5

24,1

26,9

32,31

0,0

5,0

10,0

15,0

20,0

25,0

30,0

35,0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

68,4 67,561,0

79,6

102,0

116,6122,4

128,0

144,9 146,9

184,9

0

20

40

60

80

100

120

140

160

180

200

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


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KEY FIGURES - TRACK RECORD


November 23, 2017

Net Income in € million

CAGR >12%Dividend per share in €

CAGR >17%

0,15

0,22

0,35

0,450,50

0,55 0,560,60

0,700,75 0,77

0,00

0,10

0,20

0,30

0,40

0,50

0,60

0,70

0,80

0,90

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

1 Adjusted for one-off items resulting from transaction activities and related reorganization expenses2 Additionally adjusted to exclude one-off items resulting from tax audit performed for 2009 to 2013 assessment periods

7,7

10,08,2

11,713,0

15,314,0

15,5

19,8

22,1

25,41,2

0,0

5,0

10,0

15,0

20,0

25,0

30,0

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016


www.stratec.com 16

KEY FIGURES AFTER THE FIRST NINE MONTHS 2017


November 23, 2017

1 Adjusted for one-off items resulting from transaction activities and related reorganization expenses2 Additionally adjusted to exclude one-off items resulting from tax audit performed for 2009 to 2013 assessment periods3 Additionally adjusted to exclude deferred tax benefits resulting from loss carry forwards at companies acquired in 2016


www.stratec.com 17

ADJUSTENTS AS OF SEPTEMBER 30, 2017

Consolidated net incomeEBIT


November 23, 2017


www.stratec.com 18

9-Months Sales compared to Annual Sales

SALES

€ m

illio

n

90,4105,3 107,2

126,3151,1

0

20

40

60

80

100

120

140

160

180

200

2013 2014 2015 2016 2017

9-Months Sales as of 09/30

Annual Sales as of 12/31

9M/2017 Sales

• Growth of 19.6% yoy to

€ 151.1 million

• Organic growth of 9.6%

(+) Good orders for

established systems

(+) Strong service parts

business

128.0

144.9 146.9

184.9


November 23, 2017


www.stratec.com 19

As of September 30, 2017

ADJUSTED EBIT & EBIT MARGIN

9M adjusted EBIT margin at 15.9%

• Improvement of 130 bps yoy

(+) Positive product mix triggered by

strong service parts business

(+) Profitability improvements at

subsidiaries during Q3

(-) Additional staffing related to strong

project pipeline

(-) Margin dilutive capitalization of

development activities

Adj. 9M EBIT Adj. 9M EBIT margin

EBIT in € million EBIT margin in %

14,8%

16,8%

17,9%

14,6%

15,9%

10%

12%

14%

16%

18%

20%

0

2

4

6

8

10

12

14

16

18

20

22

24

26

2013 2014 2015 2016 2017

Figures adjusted for effects from acquisition activities


November 23, 2017


www.stratec.com 20

As of September 30, 2017

ADJUSTED EARNINGS PER SHARE

0,87

1,24

1,351,29

1,57

0,50

0,60

0,70

0,80

0,90

1,00

1,10

1,20

1,30

1,40

1,50

1,60

1,70

2013 2014 2015 2016 2017

€

Adjusted 9M EPS

• Adjusted EPS at € 1.57

(9M/2016: € 1.29)

• Adjusted 9M tax rate at 22.6%

(9M/2016: 16.2%)

Figures adjusted for effects from acquisition activities; 2016 figure additionally adjusted for one-off items resulting from the tax audit for the 2009 to 2013 assessment periods


November 23, 2017


www.stratec.com 21

Operating cash flow as of Sep 30, 2017

CASH FLOW & NET DEBT

20,0

25,7

21,5

12,5

25,8

0

5

10

15

20

25

30

2013 2014 2015 2016 2017

€ m

illio

n

Operating cash flow after nine months

• Operating cash flow after nine

months increased by 107% yoy

to € 25.8 million

• Net debt decreased by 12% to

€ 43.6 million versus € 49.3

million as of Sep 30, 2016


November 23, 2017

www.stratec.com 22

FUTURE GROWTH


November 23, 2017


www.stratec.com 23

Outlook for 2017

• Sales guidance of € 205 million to € 220 million

• Adjusted EBIT margin of around 17%

Medium-term expectations

• Average annual organic sales growth (CAGR) in the high single-digit or low double-

digit percentage range

• Broadly consistent EBIT margin development

Positive scale effects partly offset by growth activities related to packed development pipeline

STRATEC – FINANCIAL GUIDANCE


November 23, 2017


www.stratec.com 24

• Improve profitability across business units

• Further realize synergies through development activities across STRATEC businesses

• Expand leading market role

• Leverage expanded platform offering

• Facilitate process of instrument/consumables integration for partners

• Achieve milestones & market launches

• Execute important development and supply agreements

FOCUS IN 2017 AND BEYOND


November 23, 2017

THANK YOU

FOR YOURATTENTION!

STRATEC Biomedical AGGewerbestr. 37

75217 Birkenfeld

Germany

Marcus Wolfinger

CEO

Jan Keppeler

Head of IR & CC

Tel: +49 7082 7916-6515

Fax: +49 7082 7916-9190

[email protected]

www.stratec.com

TICKERSymbol: SBS.DE

Bloomberg: SBS:GR

Reuters: SBSG.DE

ISIN: DE000STRA555

WKN: STRA55

CONTACT

25www.stratec.comHSBC Healthcare Day,

November 23, 2017

APPENDIX

26www.stratec.com

KEY FIGURES AT A GLANCE

IFRS (€ million) 2012 2013 2014 2015 2016

Sales 122.4 128.0 144.9 146.9 184.9

EBIT 17.6 19.5 24.1 26.9 32.31

EBIT margin (%) 14.4 15.2 16.6 18.3 17.51

Consolidated net income 14.0 15.5 19.8 22.1 25.42

Earnings per share (€) 1,19 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 121,838 117.8 137.8 158.9 258

Equity ratio (%) 75.5 82.5 81.3 82.0 55.7

Free cash flow 0.3 13.5 32.9 17.3 -70.4

AS OF DECEMBER 31

A1www.stratec.com

1 2016 figure adjusted for one-off items resulting from transaction activities and related reorganization expenses2 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


November 23, 2017

SHAREHOLDER STRUCTURE & SHARE

SHARE

IPO Aug. 1998

Number of shares 11,913,445

Share price (11/03/2017) € 63.98

Market capitalization € 762 million

Fixed and family ownership

(incl. investment companies)

Treasury shares

Retail investors incl. not

identified institutional investors

Institutional investors

SHAREHOLDER STRUCTURE(as of: 11/06/2017)

A2www.stratec.comHSBC Healthcare Day,

November 23, 2017

41,5%

0,1%

36,7%

21,7%

Institutional investors > 3%:

OppenheimerFunds, Inc

Columbia Threadneedle Investments

Allianz SE

BNP Paribas Investment Partners

ANALYST COVERAGE

Berenberg Bank

Jakob Berry

Phone: :+44 20 3465-2724

Kepler Cheuvreux

Oliver Reinberg, CFA

Phone : +49 69 75696140

METZLER Capital Markets

Alexander Neuberger

Phone: +49 69 2104 4366

Oddo BHF Corporates & Markets

Igor Kim, CFA

Phone: +49 69 7183643

Deutsche Bank

Falko Friedrichs

Phone : +49 69 91036270

Landesbank Baden-Württemberg

Volker Stoll

Phone : +49 711 12770568

Warburg Research

Michael Heider

Phone: +49 40 309537280


November 23, 2017

FINANCIAL CALENDAR & EVENTS

11/23/2017 HSBC Healthcare Day, Frankfurt, GER

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

12/07/2017 Berenberg Penny Hill Conference, London, UK

01/16/2018 Kepler Cheuvreux, German Corporate Conference, Frankfurt, GER

04/19/2018 Annual Financial Report 2017

05/15/2018 Quarterly Statement Q1 2018

05/30/2018 Annual General Meeting, Pforzheim, GER

Subject to confirmation and amendments


November 23, 2017

Documents

HSBC · 2017. 11. 27. · HSBC Healthcare Day, November 23, 2017 “LIAISON XL” for DiaSorin “PANTHER” for Hologic. 9 THE IVD MARKET HSBC Healthcare Day, November 23, 2017