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Sample to Insight Investor presentation Q1 2018 1 Investor presentation Q1 2018

Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

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Page 1: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Investor presentationQ1 2018

1Investor presentation Q1 2018

Page 2: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Disclaimer

Investor presentation Q1 2018 2

Safe Harbor Statement: This presentation contains both historical and forward-looking statements. All statements other than statements of historical fact are, or may be deemed to be forward lookingstatements 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. These statements are based oncurrent expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results could vary materially from our own expectations and projections.Some of the factors that could cause actual results to differ include, but are not limited, to the following: general industry conditions and competition; risks associated with managing growth and internationaloperations (including the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of operating results and allocations between customer classes, and the commercialdevelopment of markets for our products to customers in academia, pharma, applied testing and 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 factors such as general economic conditions, the level and timing of customers' funding, budgets andother factors); our ability to obtain regulatory approval of our products; technological advances of our competitors and related legal disputes; difficulties in successfully adapting QIAGEN's products tointegrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and to differentiate and protect our products from competitor products; market acceptance ofQIAGEN's new products and the integration of acquired technologies and businesses. For further information, please refer to “Risk Factors” section of reports that QIAGEN has filed with, or furnished to, theU.S. Securities and Exchange Commission (SEC). We undertake no obligation, and do not intend, to update these forward-looking statements as a result of new information or future events or developmentsunless and to the extent required by law.

Regulation G: QIAGEN reports adjusted results, as well as results on a constant exchange rate (CER) basis, and other non-U.S. GAAP figures (generally accepted accounting principles), to provideadditional insight on performance. In this presentation, adjusted results include adjusted net sales, adjusted operating expenses, adjusted EBITDA, adjusted diluted EPS and free cash flow. Adjusted resultsare non-GAAP financial measures QIAGEN believes should be considered in addition to reported results prepared in accordance with GAAP, but should not be considered as a substitute. QIAGEN believescertain items should be excluded from adjusted results when they are outside of its ongoing core operations, vary significantly from period to period, or affect the comparability of results with its competitorsand its own prior periods. Please see the Appendix provided in this presentation “Reconciliation of Non-GAAP to GAAP Measures” for reconciliations of historical non-GAAP measures to comparable GAAPmeasures and the definitions of terms used in the presentation. QIAGEN does not reconcile forward-looking non-GAAP financial measures to the corresponding GAAP measures due to the high variabilityand difficulty in making accurate forecasts and projections that are impacted by future decisions and actions. Accordingly, reconciliations of these forward-looking non-GAAP financial measures to thecorresponding GAAP measures are not available without unreasonable effort. However, the actual amounts of these excluded items will have a significant impact on QIAGEN’s GAAP results.

GeneReader NGS System: The QIAGEN GeneReader® NGS System is intended for Research Use Only. This product is not intended for the diagnosis, prevention or treatment of a disease. QIAGENClinical Insight® is an evidence-based decision support software intended as an aid in the interpretation of variants observed in genomic sequencing data. The software evaluates genomic variants in thecontext of published biomedical literature, professional association guidelines, publicly available databases and annotations, drug labels and clinical-trials. Based on this evaluation, the software proposes aclassification and bibliographic references to aid in the interpretation of observed variants. The software is not intended as a primary diagnostic tool by physicians or to be used as a substitute for professionalhealthcare advice. Each laboratory is responsible for ensuring compliance with applicable international, national and local clinical laboratory regulations and other accreditation requirements.

Page 3: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Agenda

3

Appendix

Portfolio review

Full-year 2017 results

Introducing QIAGEN

Investor presentation Q1 2018

Page 4: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Investor presentation Q1 2018

THE BUILDING BLOCKS OF LIFE:

DNA AND RNA

4

The molecular revolution is gaining momentum – importance of valuable insights

Page 5: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Investor presentation Q1 2018 5

How can we

achieve scientific

breakthroughs

even faster?

How can we

develop better

and safer drugs?

How can we

improve

public safety?

How can we

further improve

outcomes for

patients?

ADDRESSING THE WORLD’S

MOST PRESSING CHALLENGES

Expanding the range of customers who can benefit from molecular solutions

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Sample to Insight

Investor presentation Q1 2018 6

CUSTOMERS RELY ON QIAGEN

TO MASTER THESE CHALLENGES

Sample Technologies Assay Technologies

Bioinformatics Automation systems

SAMPLE TO INSIGHT SOLUTIONSBIOLOGICAL

SAMPLE

VALUABLE

MOLECULAR INSIGHTS

Faster Better More efficiently

#1

#1

Top 3

Top 5

QIAGEN: World leader in molecular testing solutions that enable valuable insights

Page 7: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Investor presentation Q1 2018 7

Sample Technologies Assay Technologies

Bioinformatics Automation systems

SAMPLE TO INSIGHT SOLUTIONS

#1

Top 3

Top 5

#1

BIOLOGICAL

SAMPLE

VALUABLE

MOLECULAR INSIGHTS

QIAGEN: World leader in molecular testing solutions that enable valuable insights

Page 8: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

8

Facts and figures

2017 sales ~$1.42 billion

Customers >500,000

Global reach >35 countries

Employees ~4,700

Share listings Frankfurt / NYSE

Headquarters Netherlands

QIAGEN at a glance

Leader in molecular testing solutions

True hybrid covering continuum from

Life Sciences to Molecular Diagnostics

~87%

~13%

Instruments and automation systems

Consumables (incl. bioinformatics)

World leader in molecular testing, transforming biological samples into valuable insights

Scientific breakthroughs

Academia

~23%

Pharma

~19%

Better and safer drugs

Applied Testing

~10%

Secure and protect

Molecular Diagnostics

~48%

Better healthcare

Investor presentation Q1 2018

Page 9: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

2009 2011 2013 2015 2016 2017 2020

Investor presentation Q1 2018 9

QIAGEN delivering value and improving sales, progress as U.S. HPV headwinds fade away

Sales by customer class(As % of annual net sales)

2009 2011 2013 2015 2016 2017 2020

$1.01 bn $1.17 bn $1.30 bn

26%

26%

23%

21%20%

19%

6%7%

8%

22% 20% 16%

25% 27%34%

$1.28 bn

22%

20%

9%

3%

46%

$1.34 bn

22%

19%

9%

3%

47%

23%

19%

10%

2%

46% MDx core portfolio

U.S. HPV

Applied Testing

Pharma

Academia

Total sales $1.42 bn

Full-year 2017: +7% CER net sales growth, excluding business portfolio changes

Page 10: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

2009 2017

Investor presentation Q1 2018 10

QIAGEN going through transformation to focus on attractive growth opportunities

Sales by customer class(As % of annual net sales)

MDx core portfolio

U.S. HPV

Applied Testing

Pharma

Academia

CAGR – Compound annual growth rate

100% 100%

26%

21%

6%

22%

25%

23%

19%

10%2%

46%

2020

55%

45%

2016-2020 target:

~+7-9% CER CAGR

Page 11: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Investor presentation Q1 2018 11

2020 ambitions

~+7-9% CER

CAGR

$1,338 m

+6% CER

2020

target

2016

$1.11

$340 m

≥12% CER

CAGR ~$600 m

2020 ambitions: Strong growth in sales, adjusted EPS and cash flow

Net sales Adjusted EPS Operating cash flow

2020

target

2016 2020

target

2016

Page 12: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Investor presentation Q1 2018 12

Supporting our business expansion while increasing returns to shareholders

Targeted M&A / licensing

Continuing our strategy

Novel technologies

Molecular test content

Geographic expansion

Increase returns

Returned $300 million in 2017

New commitment in 2018 to return $200 million via repurchases

Reinvest for organic growth

Capture more value from our Sample to Insight portfolio

New products

Geographic expansion

Disciplined

capital allocation

Page 13: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Investor presentation Q1 2018 13

Mu

ltip

le d

rive

rs

Greater

value

creation

+ Maximize sales growth

+ Deliver operating leverage

+ Optimize balance sheet

= Adjusted EPS growth and high returns

+ Strong governance and top talent

Committed to higher returns and greater value creation as differentiated leader

Page 14: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Agenda

14

Appendix

Portfolio review

Full-year 2017 results

Introducing QIAGEN

Investor presentation Q1 2018

Page 15: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Life

Sciences

Molecular

Diagnostics

QuantiFERON ✓

Next-generation sequencing ✓ ✓

Personalized Healthcare ✓ ✓

QIAsymphony ✓ ✓

Differentiated Technologies

Applications including:

■ Liquid biopsy

■ Microbiome

■ Single-cell research

■ Epigenetics

✓ ✓

15

Key highlight areas: QIAGEN’s Sample to Insight portfolio

Powered by

QIAGEN Bioinformatics

Growth opportunities around Sample to Insight portfolio

Investor presentation Q1 2018

Page 16: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

QuantiFERON

Investor presentation Q1 2018 16

Global gold standard for blood-based TB testing and key supporter of global fight to eliminate TB

2017 highlights

24% full-year sales growth

U.S. launch of 4th-gen QuantiFERON-TB Gold Plus

New clinical data confirm patient stratification value

of new CD8+ technology

Won tenders in South Korea and Middle East

Resolved U.S. patent litigation

2018 catalysts

QIAGEN-DiaSorin partnership providing powerful

workflow automation option (Europe in Q3 2018)

Japan launch of 4th-gen QuantiFERON-TB Gold Plus

Guideline expansion to drive conversion of

~65 million annual TB test addressable market

2020 goal to exceed $300 million of annual sales

Page 17: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

QuantiFERON

17

BCG – Bacillus Calmette-Guerin vaccine NTM – Non-tuberculosis mycobacteria IGRA – Interferon-gamma release assay

(1) Not available in all markets

Can be fully automated

Highly specific

Results with one patient visit

No inter-reader variability

Electronic results

Quality-assured laboratory test(1)

QuantiFERON-TB (QFT)

Manual placement, reading, data entry

Affected by BCG vaccine and NTM

Two patient visits required

Significant inter-reader variability

Poor surveillance tool

Often no quality control after training

Tuberculin skin test (TST)

Investor presentation Q1 2018

QuantiFERON-TB: Leading IGRA with significant clinical and workflow benefits

Page 18: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

QuantiFERON

Investor presentation Q1 2018 18

Immune Monitoring: Expand QuantiFERON benefits

Japan Market: ~7 million skin tests Launch QFT-Plus in 2017 Develop commercial partner network

2020 target: >$300 million sales

Intensify commercial activities in strategic markets

Automation upgrades to improve workflow

Continue menu expansion

Europe / Middle East / Africa Market: ~5 million skin tests Dubai hub to expand

regional activities

Latin America Market: ~8 million skin tests Support public health

guidelines (WHO)

North America Market: ~15 million skin tests FDA approval of QFT-Plus in 2017 Commercial power: Adding reps

Asia-Pacific Market: ~15 million skin tests Highest TB burden region Go direct in attractive markets Influence guidelines

China Market: ~15 million skin tests

(available to QFT) Build networks and drive clinical demand Support LTBI guidelines

Total

convertible skin

test market:

~65 million

tests annually

QuantiFERON-TB: Drive commercial success through targeted global actions

Page 19: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Next-generation sequencing

Investor presentation Q1 2018 19

Strategic provider of differentiated solutions across all segments of fast-growing NGS market

2017 highlights

Exceeded $115 million CER in annual sales

Rapid expansion of “digital NGS” QIAseq multiplex

gene panel portfolio for use on any NGS sequencer

GeneReader NGS System: Expanding global reach with

China MAQGEN joint venture, new customized panels

2018 catalysts

Targeting over $140 million CER in annual sales

New Enterprise Genomics Service to address

demand for customized gene panels for any sequencer

Strong growth in GeneReader placements and usage:

enhancements with new chemistry and gene panels

CER – Constant exchange rates

Page 20: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

GeneReader NGS System

Investor presentation Q1 2018 20

Actionable

insights

Expertise

and service

First complete

NGS workflow

Flexibility to

fit needs

Reliable resultsEase of use Unique automation Data interpretation

QIAcube®

Predictable

costs

1

The world’s first complete Sample to Insight NGS solution for actionable results

GeneRead QIAcube® GeneReader™ Bioinformatics portfolio

2 3 4 5

Page 21: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

GeneReader NGS System

QIAGEN Target customer requirements Comp. I Comp. T

Actionability(1) 100% 100% 70% 80%

Integration of bioinformatics 100% 70% 80%

Strength of Knowledge Base, # publications >30k Third party >1k

Actionable variants detected in panel >700 500 600

Analytical performance 100% 100% 70% 80%

Accuracy (Q-score)>35 to >60

UMI 30 25

Read length (base pairs) 150 2x300 600

Integration and in-process controls 100% 70% 80%

Throughput range of tumor panel(2) 200-3,000 250-1,500 300-1,000 ≥1,000

Data output (gigabases) 6 15 15

Sample to result turnaround time (days) 5 4 3

Time to go live (months) 1 3-9 3-9

Investor presentation Q1 2018 21

(1) Based on 2 use case scenarios: a) QIAact AIT vs. AmpliSeq Hotspot vs. Tumor 15; b) QIAact Lung vs. Oncomine Lung vs. Tumor 15

(2) Based on price per sample analysis incl. consumables, hardware and software (no service) for use-case a): QIAact AIT vs. AmpliSeq Hotspot vs. Tumor 15

UMI – Unique Molecular Indices

Optimum

Optimum

Minimum

Minimum Optimum

Minimum

Meeting and exceeding target requirements with strong competitive position

Page 22: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

0 250 500 750 1,000 1,500 2,000 2,500

GeneReader NGS System

Investor presentation Q1 2018 22

GeneReader targeting a distinct and highly attractive market segment

Clinical research market throughput(1)

Applications covered by GeneReader NGS System(2)Throughput per small benchtop system (<15GB)

Share of

marketPanels

Large

panels

WES /

WGS

Research 80% 20% 40% 40%

Clinical research

and diagnostics20% 70% 20% 10%

Research Clinical researchand diagnostics

No. of la

bora

tories

Panels

Samples per year

Low

~$40

>$150

Larg

e

panels

WE

SW

GS

Average

throughput

(1) Including pathology market (2) Based on price per sample analysis incl. consumables, hardware and software (no service) for use-case:

QIAact AIT vs. AmpliSeq Hotspot vs. Tumor 15 WES – Whole exome sequencing WGS – Whole genome sequencing

NGS market by application

(In $ thousands per year)

Research Clinical research

and diagnostics

Majority of use is in the mid to low

throughput

GeneReader addresses throughput needs of panel market very well

Higher consumable pull-through for

clinical labs

Comp. T

Comp. I

Throughput

Medium High

GeneReader

Page 23: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Personalized Healthcare

Investor presentation Q1 2018 23

Enabling valuable insights to help guide treatment decisions

CDx – Companion diagnostics

2017 highlights

2018 catalysts

Exceeded 25 master collaboration agreements

with leading pharma and biotech companies

First-ever NGS-based immuno-oncology CDx

consortium with Bristol-Myers Squibb

First FDA-cleared JAK2 test for blood disorders

Ongoing growth of PCR-based CDx tests

Up to five FDA submissions and / or launches

planned for CDx tests

Strong pipeline expansion and additional

NGS-based immuno-oncology CDx collaborations

Page 24: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

QIAsymphony

Investor presentation Q1 2018 24

QIAsymphony: Gold standard in molecular testing for Molecular Diagnostics and Life Science customers

2017 highlights

2018 catalysts

Significantly exceeded 2,000 cumulative placements

Successful regionalization strategy

(22 CE-IVD tests, 5 FDA-cleared assays)

Very positive customer response to new

liquid biopsy automation protocols

New front-end solution for GeneReader NGS System

Goal for more than 2,300 cumulative total placements

Continued double-digit CER consumables growth

Expand sample processing apps and test menu

Page 25: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Differentiated Technologies

Investor presentation Q1 2018 25

Proven ability to integrate cutting-edge breakthroughs into Sample to Insight workflows

Strengthening No. 1 leadership position in

liquid biopsy sample processing

~75% market share in microbiome sample

processing, full integrated POWER kits

Absolute leadership in Epigenetics

Exiqon long-read RNA applications

New microRNA applications for use with NGS

Double-digit CER growth

New, market-leading positions in emerging areas

New applications with Sample to Insight workflows

enhanced by QIAGEN bioinformatics

2017 highlights

2018 catalysts

Page 26: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

STAT-Dx acquisition and QIAstat-Dx

26

Access to novel multiplex platform

Next generation of molecular multiplex syndromic testing technology

Drive dissemination of molecular testing

QIAstat-Dx:

Preparing for CE-IVD launch in H2 2018, U.S. in 2019

Two initial panels: respiratory and gastrointestinal

Plans to develop meningitis, blood culture, pneumonia,

transplant, oncology and immunoassay panels

Includes QIAGEN chemistries – technology and assay synergies

Significant channel and menu synergies with current QIAGEN portfolio

Key advantages:

Powerful processing capabilities for many sample types

Flexible approach to customize result reporting

Highly cost-efficient system fully connected to laboratory info systems

Only multiplex, syndromic system with real-time PCR and quantitative results

Multi-analyte capabilities, plans to launch immunoassay tests and expand into oncology

Leverage QIAGEN’s advantages in sample technologies, infectious diseases and global reach

(1) Acquisition to be funded from existing cash reserves and planned closing in second quarter of 2018. QIAGEN expects full-year 2018 sales of about $7 million and at least $30 million in 2019.

Due to investments, expected to be dilutive to full-year 2018 adjusted EPS by about $0.05 per share, but neutral in 2019.

Investor presentation Q1 2018

Launch of QIAstat-Dx subject to successful closing of acquisition

Page 27: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

STAT-Dx acquisition and QIAstat-Dx

27

Novel one-step solution with expanded range of sample types and PCR-based test options

QIAstat-Dx

Sample to Insight One-step diagnostic solution

Broad menu Two syndromic assays at launch, other tests in development

Ease of use 1-minute hands-on time

Versatility Sample input flexibility to process swabs and complex samples

Speed Turnaround time of ~1 hour with full quantification

Reimbursement needs Flexibility in scaling target breadth and test results

Scalability Modular system (1-8 modules)

Connectivity Bi-directional HIS / LIS interface

Multi-analyte Immunoassay capabilities In development

HIS – Hospital information system LIS – Laboratory information system

Access to novel multiplex platform

Investor presentation Q1 2018

Launch of QIAstat-Dx subject to successful closing of acquisition

Page 28: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Agenda

28

Appendix

Portfolio review

Full-year 2017 results

Introducing QIAGEN

Investor presentation Q1 2018

Page 29: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Full-year 2017: Overview

Investor presentation Q1 2018 29

Key results

In $ millions (Except EPS) FY 2017 FY 2016 Change $ / (CER)

Net sales 1,417.5 1,338.0 +6% (+6%)

Adjusted net sales(1) 1,419.4 1,338.0 +6% (+6%)

Adj. net sales excluding

business portfolio changes(2) 1,394.3 1,302.2 +7% (+7%)

Operating income 153.4 98.8 NM

Adj. operating income(3) 371.5 324.7 +14%

Net (loss) income 40.4 80.4 NM

Adj. net income(3) 295.3 264.8 +12%

Diluted EPS(3) $0.17 $0.34

Adj. diluted EPS (CER)(3) $1.27

($1.27)$1.11

Achieved full-year 2017 targets with solid Q4 results

+7% CER adj. net sales growth excl. business portfolio change

vs. ~+7% CER outlook

$1.27 adjusted EPS ($1.27 CER) vs. $1.25-1.27 CER outlook

26% adjusted operating income margin vs. 24% in 2016

1

Sample to Insight portfolio momentum

Record year for QIAsymphony placements

QuantiFERON-TB sales with 24% growth, new DiaSorin partnership

Streamlined China business portfolio and positioned for faster growth

2

Full-year 2018 outlook and capital allocation

Adj. net sales growth CER target:(1)

Organic growth accelerates to ~6-7% CER vs. 5% CER in 2017

Adj. EPS target impacted by U.S. tax reform and STAT-Dx acquisition

New $200 million share repurchase program to be launched

4

Outlook – As of January 31, 2018

Q1 2018 FY 2018

Adj. net sales growth (CER)(1) +~5% +~6-7%

Adj. diluted EPS (CER)(3) ~$0.23-0.24 ~$1.31-1.33

STAT-Dx acquisition marks entry into multiplex syndromic testing

Highly synergistic acquisition to drive molecular testing dissemination

European launch of QIAstat-Dx planned for H2 2018, U.S. launch

in 2019 and menu expansion for infectious diseases and oncology

3

(1) Adjusted net sales include all revenue contributions from the January 2017 acquisition of bioinformatics company OmicSoft. Organic growth excludes business portfolio changes in both periods.

(2) Business portfolio changes include discontinuation of certain non-core PCR assays and the divestment of China HPV test R&D and commercial distribution to a local company.

(3) Adjusted figures exclude restructuring charges and other items detailed in reconciliation tables. Weighted number of diluted shares (FY 2017: 233.0 million, FY 2016: 239.0 million).

CER – Constant exchange rates NM – Not meaningful Results for net income and EPS based on income attributable to owners of QIAGEN N.V.

Page 30: Investor presentation Q1 2018 · 3/1/2018  · Sample to Insight 2009 2011 2013 2015 2016 2017 2020 Investor presentation Q1 2018 9 QIAGEN delivering value and improving sales, progress

Sample to Insight

Q4 and FY 2017: Financial review

(In $ millions, unless indicated)(Diluted EPS in $ per share)

Fourth quarter Full-year

2017 2016 Change 2017 2016 Change

Net sales 396.9 366.5 8% (5% CER) 1,417.5 1,338.0 6% (6% CER)

Adjusted net sales(1) 397.1 366.5 8% (6% CER) 1,419.4 1,338.0 6% (6% CER)

Adj. net sales excluding business portfolio changes(2) 389.9 356.6 9% (6% CER) 1,394.3 1,302.2 7% (7% CER)

Gross profit margin 66% 62% 65% 63%

Adjusted gross profit margin 71% 71% 71% 71%

Operating income 43.4 4.2 NM 153.4 98.8 NM

Operating income margin 11% 1% 11% 7%

Adjusted operating income(3) 121.7 112.7 8% 371.5 324.7 14%

Adjusted operating income margin 31% 31% 26% 24%

Net (loss) income -39.7 8.6 NM 40.4 80.4 NM

Adjusted net income(3) 100.1 93.5 7% 295.3 264.8 12%

Tax rate NM NM NM NM

Adjusted tax rate 17% 15% 18% 16%

EPS ($ per share)(3) -$0.18 $0.04 $0.17 $0.34

Adjusted EPS (CER)(3) $0.43 ($0.43) $0.39 $1.27 ($1.27) $1.11

(1) Adjusted net sales include all revenue contributions from the January 2017 acquisition of bioinformatics company OmicSoft.

(2) Business portfolio changes include discontinuation of certain non-core PCR tests and the divestment of China HPV test R&D and commercial distribution to a local company.

(3) Adjusted figures exclude restructuring charges and other items detailed in reconciliation tables. Weighted number of diluted shares (Q4 2017: 231.8 million, Q4 2016: 239.6 million) (FY 2017: 233.0 million, FY 2016: 239.0 million)

Reported diluted EPS based on weighted number of basic shares (Q4 2017: 226.6 million).

CER – Constant exchange rates NM – Not meaningful Results for net income and EPS based on income attributable to owners of QIAGEN N.V.

Investor presentation Q1 2018 30

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Q4 and FY 2017: Product type and customer class

(1) CDx co-development sales (Q4 2017: $18 million, +62% CER ) (FY 2017: $43 million, +34% CER); U.S. HPV sales (Q4 2017: $8 million, -22% CER, 2% of sales) (FY 2017: $28 million, -16% CER, 2% of sales)

Growth rates at CER (Constant exchange rates) Sales and sales contributions at actual FX rates Tables may contain rounding differences

Q4 2017 net sales: $396.9 million FY 2017 net sales: $1.418 billion

Q4 2017 adj. net sales: $397.1 million FY 2017 adj. net sales: $1.419 billion

Adj. Sales (In $ m) % CER change % of sales Adj. Sales (In $ m) % CER change % of sales

Consumables and related revenues $340 +6% 86% $1,245 +7% 88%

Instruments $57 +6% 14% $175 +1% 12%

Molecular Diagnostics(1) $193 +4% 49% $683 +6% 48%

Applied Testing $40 +9% 10% $137 +14% 10%

Pharma $72 +9% 18% $276 +7% 19%

Academia $92 +5% 23% $323 +4% 23%

Molecular Diagnostics Applied Testing Pharma Academia

Investor presentation Q1 2018 31

Q4 2017: Pharma and Applied Testing lead performance as all customer classes deliver growth

Q4 2017: +6% CER growth excl.

business portfolio change; single-digit

CER growth in consumables and flat

instrument sales; gains in Personalized

Healthcare and QIAsymphony

consumables

Q4 2017: Double-digit CER growth in

instruments and single-digit gains in

consumables; Americas lead regions

with strong double-digit CER growth

due to human ID / forensics business

expansion

Q4 2017: Robust double-digit CER

growth in consumables and related

revenues, but weaker instrument sales;

Americas deliver double-digit CER

growth complemented by EMEA and

Asia-Pacific / Japan regions

Q4 2017: Double-digit CER gains in

instruments and single-digit CER

growth in consumables; EMEA and

Asia-Pacific / Japan lead performance

across regions; customer sentiment

improving in U.S. and Europe

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Q4 2017 net sales: $396.9 million FY 2017 net sales: $1.418 billion

Q4 2017 adj. net sales: $397.1 million FY 2017 adj. net sales: $1.419 billion

Adj. Sales (In $ m) % CER change% of sales

Adj. Sales (In $ m) % CER change % of sales

Americas(1) $176 +7% 44% $655 +4% 46%

Europe / Middle East / Africa $134 +6% 34% $463 +9% 33%

Asia-Pacific / Japan $86 +1% 22% $299 +7% 21%

Q4 and FY 2017: Geographic regions

(1) Americas excluding U.S. HPV Q4 2017 (+9% CER) and FY 2017 (+6% CER)

Top 7 EGM (Q4 2017: +9% CER / 18% of sales, FY 2017: +13% CER / 16% of sales); Rest of the world (Q4 2017 and FY 2017: Less than 1% of net sales)

Sales figures and sales contributions at actual FX rates Growth rates at CER Tables may contain rounding differences

Americas Europe / Middle East / Africa Asia-Pacific / Japan

Investor presentation Q1 2018 32

Q4 2017: High-single-digit CER growth in the U.S. and

Brazil more than offset double-digit CER decline in

Mexico due to tender expiry

Q4 2017: Germany, Italy and Turkey lead region to solid

performance, supported by gains in Nordic countries

Q4 2017: +5% CER growth excluding China business

portfolio changes, double-digit CER growth in India

along with single-digit CER gains in South Korea and

China, but weaker results in Japan

Q4 2017: Americas region leads performance, top 7 emerging markets grow +9% CER

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FY 2017: Balance sheet and cash flow

Balance sheet data(As of December 31) 2017 2016

Group liquidity (In $ millions) 1,017 532

Net debt (In $ millions) 743 537

Shareholder equity ratio 50% 61%

Leverage ratio(1) 1.5x 1.2x

Cash flow (In $ millions) 2017 2016

Net cash provided by

operating activities(2) 286.8 341.6

Purchases of property,

plant and equipment-90.1 -74.5

Free cash flow(2) 196.7 267.1

(1) Leverage ratio is calculated on trailing four quarters as net debt / adjusted EBITDA

(2) 2017 results include cash payments for restructuring (Q4 2017: $7 million, FY 2017: $48 million) and litigation settlements (Q4 2017: $28 million, FY 2017: $41 million)

Leverage ratio(1)

FY 2017: Free cash flow of $197 million reduced by significant one-time cash payments

33Investor presentation Q1 2018

0.2

3.3

2.2

0.4

-0.1

0.90.9

1.11.3

1.61.2 1.5

2006 2008 2010 2012 2014 2016

2007 2009 2011 2013 2015 2017

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In $ per shareLow

Change

vs. 2017High

Change

vs. 2017

Underlying adjusted EPS outlook $1.38 CER 9% $1.40 CER 10%

- Tax impact (higher adjusted tax rate vs. 2017) -$0.03 -$0.03

- 2018 acquisition: STAT-Dx (H2 2018 launch) -$0.05 -$0.05

+ New $200 million share repurchase program $0.01 $0.01

= 2018 adjusted EPS guidance (2017: $1.11) $1.31 CER 3% $1.33 CER 5%

Q1 and Full-year 2018: Outlook

Investor presentation Q1 2018 34

As of January 31, 2018

2018 outlook: Goals for strong organic sales growth and improvement in adjusted EPS

2018: Adjusted EPS outlook

Sales in $ millionsFull-year 2017 results Full-year 2018 assumptions

Organic growth in net sales(1) +5% CER +~6-7% CER

+ Divestment: Business portfolio changes $25 ~$7

+ 2017 acquisition contributions: Exiqon and OmicSoft $23

+ 2018 acquisition contributions: STAT-Dx (H2 2018 launch) ~$7

= Total 2018 adjusted net sales growth guidance $1,419.4 +~6-7% CER

(1) Organic growth excludes business portfolio changes in both years and acquisitions in first 12 months, also includes ~1.5 percentage points of headwind from U.S. HPV test sales (2017: $28 m, 2018 guidance: ~$10 m).

CER – Constant exchange rates

CER – Constant exchange rates

2018: Adjusted net sales outlook

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Q1 2018 outlook Full-year 2018 outlook

Adjusted net sales(1) ~+5% CER ~+6-7% CER

Adjusted EPS(2)~$0.23-0.24 CER

(Prior year: $0.22)

~$1.31-1.33 CER

(Prior year: $1.27)

Adjustments to operating income (in $ millions):

Purchased intangibles amortization ~$25 m ~$100 m

Restructuring-related items ~$2 m ~$9 m

Business integration and acquisition-related items ~$5 m ~$16

Adjusted tax rate (In %) ~20-21% ~20-21%

Weighted average number of diluted shares outstanding

(Based on $33.00 share price for Q1 2018)~232 million ~232 million

Q1 and FY 2018: Outlook and assumptions

CER – Constant exchange rates

(1) Adjusted net sales include all revenue contributions from January 2017 acquisition of bioinformatics company OmicSoft. Due to purchase price accounting rules, reported net sales is reduced by fair value adjustments to

deferred revenues related to sales contracts executed prior to acquisition. 2018 adjusted net sales outlook includes sales from business portfolio changes in both periods.

(2) QIAGEN reports adjusted results, as well as results on a constant exchange rate (CER) basis, and other non-U.S. GAAP figures to provide additional insight into its performance. These results include adjusted net sales,

adjusted gross profit, adjusted operating income, adjusted net income attributable to owners of QIAGEN N.V. and adjusted diluted EPS. Adjusted results are non-GAAP financial measures that QIAGEN believes should be

considered in addition to reported results prepared in accordance with GAAP, but should not be considered as a substitute. QIAGEN believes certain items should be excluded from adjusted results when they are outside of

ongoing core operations, vary significantly from period to period, or affect the comparability of results with competitors and its own prior periods. Furthermore, QIAGEN uses non-GAAP and constant currency financial

measures internally in planning, forecasting and reporting, as well as to measure and compensate employees. QIAGEN also uses adjusted results when comparing current performance to historical operating results, which

have consistently been presented on an adjusted basis.

FY 2018 outlook includes planned sales of ~$7 million from anticipated H2 2018 launch of QIAstat-Dx system subject to acquisition of STAT-Dx, planned to be completed in second quarter of 2018.

Every $1.00 change in market price per share of common stock above $32.06 share price results in an increase / decrease of ~700,000 in dilutive shares due to call-spread overlay (CSO) related to 2019 and 2021 convertible

notes, while every $1.00 change above $50.97 share prices results in increase of ~600,000 in dilutive shares due to 2023 convertible notes.

As of January 31, 2018

35Investor presentation Q1 2018

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Agenda

36

Appendix

Portfolio review

Full-year 2017 results

Introducing QIAGEN

Investor presentation Q1 2018

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Global reach into the most attractive geographic markets

Investor presentation Q1 2018 37

ManchesterHilden

Germantown

Venlo

Shanghai

Shenzhen

Aarhus

Redwood City

Waltham

Germantown, Maryland

Americas

Hilden, Germany

Europe

Shanghai

Asia-Pacific

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Executive Committee

Investor presentation Q1 2018 38

Exe

cu

tive

Co

mm

itte

eCEO

Peer Schatz

Bu

sin

ess

Deve

lop

ment(

1)

CFO

Roland Sackers

Business Development

Jean-Pascal Viola

Molecular Diagnostics

Thierry Bernard

Life Science

Thomas Schweins

Operations

Mark Gladwell

Commercial Operations

Manuel O. Méndez

BioinformaticsHuman Resources

Annette Koch Jonathan Sheldon

(1) Business Development is a strategic function reporting directly to CEO, but not included in EC.

Solid leadership team with experience and an effective structure

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Employees as of December 31, 2017

AmericasEurope /

Middle East / Africa

Asia Pacific /

Japan / ROW

Total

Q4 2017

Total

Q4 2016Change

Production 279 679 123 1,081 996 9% (1)

R&D 218 691 44 953 995 -4%

Sales 592 718 575 1,885 1,909 -1%

Marketing 66 154 58 278 308 -10% (2)

Administration 90 325 76 491 476 3%

Total 1,245 2,567 876 4,688 4,684 0%

Investor presentation Q1 2018 39

(1) Increase in production due in part to insourcing of QuantiFERON manufacturing

(2) Decrease in marketing due in part to centralization of various marketing functions

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Your contacts

Calendar

Q1 2018 results May 2018

Annual General Meeting June 2018

Q2 2018 results July 2018

Q3 2018 results October 2018

Share information

NYSE: QGEN

Frankfurt: QIA

ISIN / CUSIP: NL0012169213 / N72482 123

WKN: A2D KCH

Investor presentation Q1 2018 40

E-mail: [email protected]

Internet: ir.qiagen.com

www.linkedin.com/company/qiagen

www.facebook.com/QIAGEN

twitter.com/QIAGEN

www.youtube.com/user/QIAGENvideos

Download the QIAGEN IR App

John Gilardi

Vice President Corporate

Communications and IR

Phone: +49 2103 29 11711

Mobile: +49 152 018 11711

E-mail: [email protected]

Dr. Sarah Fakih

Associate Director

Investor Relations

Phone: +49 2103 29 11457

Mobile: +49 152 018 11457

E-mail: [email protected]

Alexandra Koenig

Coordinator

Investor Relations

Phone: +49 2103 29 11709

Mobile: +49 152 018 11709

E-mail: [email protected]