STRATEC Biomedical AG
Kepler Cheuvreux & UniCredit –
14th German Corporate Conference
Frankfurt/Main, January 21, 2015
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.
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
1
Agenda
1.
Overview and Business Model
2.
The IVD Market
3.
Financials
4.
Aspects of Future Growth
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
2
Investment Snapshot
• Market leader in automation solutions in the diagnostic industry with installed
base of more than 10,000 systems across over 20 system families including:
- Siemens’ ADVIA Centaur
- DiaSorin’s LIAISON XL
- Hologic/Gen-Probe’s PANTHER
- bioMérieux’s new VIDAS
• CAGR revenues since 2010: 8%
• Guidance revenue growth 2014 to 2017: 8% - 12%
• Profitable with revenue of € 128 million in 2013
• Dividend payments raised over 10 consecutive years
“LIAISON XL” for DiaSorin
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
3
STRATEC in the IVD Value Chain
Unique Market Position
Diagnostic
Companies
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
Blood Banks,
Laboratories
Laboratories
performing
tests and
offering
service to
doctors and
patients using
reagents from
diagnostic
companies
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
Patients
Growth drivers:
• Aging
population
• Developing
healthcare
systems world
wide
• High volume
of new tests
4
Business Model
• STRATEC provides instrumentation, software and automation solutions
– OEM development and manufacturing
– More than 2,700 fully automated analyzer systems manufactured in 2013
– 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
“PANTHER” for Hologic Gen-Probe
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
5
Securing Return on Investment
• 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
“Simoa HD-1” for Quanterix
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
6
Agenda
1.
Overview and Business Model
2.
The IVD Market
3.
Financials
4.
Aspects of Future Growth
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
7
IVD Market Segments
IVD Market: ~ 50 billion USD
Reagents / Chemistry
Instrumentation
Instrument Services
High Throughput
(number of systems)
5%
80%
Total instrumentation
~ 7.5 billion USD
15%
Low Throughput
(number of systems)
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
8
IVD Instrumentation Market
Outsourced vs In House Instrumentation Market
9
8
7
USD billion
6
64%
66%
5
4
2009 - 2015
CAGR 3%
75%
73%
71%
70%
68%
3
2009 - 2015
CAGR 13%
2
1
25%
27%
29%
2009
2010
2011
32%
34%
36%
30%
2012
2013E
2014E
2015E
-
IVD OEM Market
IVD In House Market
Source: Various sources. Excludes glucose test monitors.
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
9
Global Top 20 – IVD Companies
Revenues 2013 (USD billion)
1.
Roche Diagnostics
8.4
2.
SIEMENS
5.2
3.
Abbott Diagnostics
4.5
4.
Danaher
4.5
5.
Thermo Fisher
3.2
6.
Alere
2.4
7.
Ortho Clinical Diagnostics (now Carlyte in 2014)
1.9
8.
Sysmex
1.8
9.
bioMerieux
1.7
10.
BIO-RAD
1.4
11.
BECTON DICKINSON
1.3
12.
Hologic / Gen-Probe
1.2
13.
CH Werfen
0.9
14.
Grifols (incl. Novartis diagnostics business unit)
0.7
15.
Agilent / Dako
0.7
16.
QIAGEN
0.7
17.
DiaSorin
0.6
18.
Diagnostica Stago
0.5
19.
EUROIMMUN
0.4
20.
Immucor
0.3
Source: IVD News / figures adjusted by acquisitions in 2012 / non-public companies estimated / non-reported sector revenues estimated
Customer STRATEC Instrumentation
Customer STRATEC Data Management
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
Not a STRATEC customer
10
Defining Outsourcing
Inhouse
Contract
Manufacturing
Transferring
Responsibilities
Development
Department
In-house or
3rd Party
Development
Department
Outsourcing
Partner
Integration/ Transfer Phase
Development
Department
Manufacturing
Phase
Supply Chain
In-house
Development
Department
CMs & EMS
Outsourcing Partner
Outsourcing
Design Phase
Time / Costs
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
11
Agenda
1.
Overview and Business Model
2.
The IVD Market
3.
Financials
4.
Aspects of Future Growth
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
12
PLEASE NOTE
The accounting methods used in the consolidated financial
statements of the Annual Report 2013 were amended in line with
IAS 8 for the 2013 financial year. The comparative figures for the
previous year (2012) have been adjusted mandatorily. Reference is
made in this respect to the information in Section A of the notes to
the consolidated financial statements. The previous year’s figures
in this presentation (until 2011) have not been adjusted and are
therefore not directly comparable with the figures stated for the
2012 and 2013 financial years.
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
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Financials at a Glance
Key figures after the first nine months
(€ thousands)
Sept 30, 2014
Sept 30, 2013
Change
Sales
105,278
90,819
+ 15.9%
EBIT
17,685 *
12,847
+ 37.7%
16.8 *
14.1
14,627 *
10,173
+ 43.8%
1.24 *
0.87
+ 42.5%
EBIT margin (%)
Consolidated net income
Earnings per share (€)
+ 270 BPS
* 2014 figure adjusted to exclude a one-off negative item resulting from recognition in the first quarter of expenses for the remaining years of the
term of a management board contract for a retired member of the Board of Management and a positive non-operating item due to recognition of
income for a development project discontinued in 2013. Unadjusted EBIT amounts to € 17.0 million, the corresponding EBIT margin amounts to
16.2%, consolidated net income to € 14.2 million and earnings per share to € 1.20. The actual amount of the aforementioned expense item may
differ at the time of payment from the amounts presented here.
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
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Sales
9-Months Sales compared to Annual Sales
140
116.6
122.4
128.0
87.6
90.8
2012
2013
120
102.0
€ million
100
79.6
80
60
105.3
40
56.0
69.2
80.2
20
• Strongest first nine months
in company’s history
• Ongoing positive
developments in service
parts, established and
newer analyzer systems
• Growth expected to
continue in Q4/2014
0
2009
2010
2011
2014
Annual Sales as of 12/31
9-Months Sales as of 09/30
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
15
Installed Base & Product Groups
As of December 31
As of December 31
Delivered systems & installed base
Relative share by product group
100%
14.000
90%
12.000
80%
10.000
70%
60%
8.000
50%
6.000
40%
4.000
30%
20%
2.000
10%
0
0%
2007
2008
2009
2010
2011
2012
2013
2007
2008
2009
2010
2011
Number of analyzer systems delivered
Analyzer systems
Installed base (based on a 5 year average life cycle)
Development, service and consulting
2012
2013
Replacement parts / disposables
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
16
EBIT & EBIT Margin
As of December 31 – 9M/2014
EBIT in € million
EBIT margin in %
24
22%
21.8
22
21%
19.5
20
18
16
20%
17.7
17.6
15.6
14.7
19%
18%
14
17%
12
16%
10
15%
8
14%
6
13%
4
12%
2
11%
0
• Improved EBIT margin at 16.8%*:
- Improved gross margin of major
systems
- Improving share of sales with
service parts
- Bigger than usual impact from other
operational expenses & income
10%
2009
2010
2011
2012
2013
9M/2014*
Full Year EBIT
9-months EBIT
EBIT margin
* 2014 figure adjusted to exclude a one-off negative item resulting from recognition in the first quarter of expenses for the remaining years of the term
of a management board contract for a retired member of the Board of Management and a positive non-operating item due to recognition of income for
a development project discontinued in 2013. Unadjusted EBIT amounts to € 17.0 million, the corresponding EBIT margin amounts to 16.2%.
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
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Earnings per Share
Earnings per Share (EPS)
1,60
1.32
1.32
1,40
1.14
Euro
1,20
1.06
1.03
1.24
1,00
• Net income at € 14.6* million
• Rising tax rate
• EPS at € 1.24* after nine months
0,80
0,60
0,40
0,20
0,00
2009
2010
EPS as of 12/31
2011
2012
2013
2014
EPS as of 09/30
* 2014 figure adjusted to exclude a one-off negative item resulting from recognition in the first quarter of expenses for the remaining years of the term
of a management board contract for a retired member of the Board of Management and a positive non-operating item due to recognition of income for
a development project discontinued in 2013. Unadjusted consolidated net income amounts to € 14.2 million and earnings per share to € 1.20.
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
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Cash flow
As of September 30
IFRS (€ million)
9M/2014
9M/2013
Cash flow
19.5
13.9
Cash flow – operating activities
25.7
20.0
Cash flow – investment activities
-5.7
-7.9
Cash flow – financing activities
-7.9
-6.3
Free cash flow
20.1
12.1
Cash and cash equivalents
at end of period
34.6
18.7
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
19
Agenda
1.
Overview and Business Model
2.
The IVD Market
3.
Financials
4.
Aspects of Future Growth
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
20
Growth in 2015 and beyond
• Revenue Growth:
– Hitting development milestones
– New product launches and ramp-ups
• Business Development:
– Extend innovation leadership
– Evaluate further niches and external opportunities
– Extension of development and manufacturing capacities
• Profitability and Cash flow:
– Reduction in manufacturing costs
– Further reduction of working capital requirements
– Manage development growth
• Market growth:
– New tests and technologies
– Demographic development
– Outsourcing in the IVD industry
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
21
STRATEC – Guidance
Sales Guidance
250
CAGR 4-year sales 2014 - 2017:
8% - 12% based on 2013
200
€ million
2013 Sales:
€ 128 million
Sales Guidance 2014 to 2017:
•
2014 to 2017: 8% - 12% CAGR
based on 2013
EBIT Margin Guidance:
150
• 2014: > 2013
100
50
0
2013
2014
2015
2016
2017
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
22
Contact
STRATEC Biomedical AG
Gewerbestr. 37
75217 Birkenfeld
Germany
Tel: +49 7082 7916-0
Fax: +49 7082 7916-999
www.stratec.com
TICKER
Symbol:
Bloomberg:
Reuters:
ISIN:
WKN:
SBS.DE
SBS:GR
SBSG.DE
DE0007289001
728 900
Marcus Wolfinger
CEO, Chairman of the Board of Management
[email protected]
Admitted into Deutsche Börse TecDAX® since
November 2010
THANK YOU!
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
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Appendix
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
24
STRATEC Group
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
25
Key Figures at a Glance
As of December 31
IFRS (€ million)
2009
2010
2011
2012
2013
Sales
79.6
102.0
116.6
122.7
128.0
EBIT
14.7
17.6
21.8
15.6
19.5
EBIT margin (%)
18.5
17.3
18.7
12.7
15.2
Consolidated net income
11.7
13.0
15.3
12.5
15.5
Earnings per share (€)
1.03
1.14
1.32
1.06
1.32
Dividend per share (€)
0.45
0.50
0.55
0.56
0.60
No. of employees
380
440
503
533
546
Total assets
85.8
98.8
111.0
108.5
117.8
Equity ratio (%)
69.1
72.7
75.0
80.7
82.5
Free cash flow
6.4
-6.9
8.3
0.4
13.5
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
26
Conversion Accounting Methods
Change in treatment of development cooperations:
• Recommendations by German Financial Reporting Enforcement Panel (DPR)
• Distinction between development cooperations and
proprietary development projects
• Completed during 2013
• Balance sheet:
 Inventory  Other intangible assets
 Contraction of other liabilities through inclusion of milestone payments
 Clustering: IAS11 and IAS38
• P&L:
 Changes to Amortization Scheme (chronological to quantitative)
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
27
Conversion Accounting Methods
Key figures including and excluding amendment items:
2013
2013
2012
2012
incl.
amendment items
excl.
amendment items
incl.
amendment items
excl.
amendment items
Sales
127,950
129,639
122,667
122,424
EBIT
19,493
20,063
15,578
17,441
Consolidated net income
15,478
15,905
12,449
13,846
Earnings per share (€)
1.32
1.35
1.06
1.18
EBIT margin (%)
15.2
15.5
12.7
14.3
Consolidated income statement (€ 000s)
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
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Shareholder Structure & Share
Shareholder Structure
(as of: 12/31/2015)
Hermann Leistner, his family
and their investment company
23.3%
38.8%
Treasury stock
Institutional investors
Retail investors
37.8%
0.1%
Share
IPO
Capital increase
Number of shares
Share price (01/12/2015)
Market capitalization
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
Aug. 1998
< 10%, Mar. 2002
< 10%, Sep. 2005
11,795,445
€ 47.65
€ 562 million
29
Institutional Shareholders
Top 15 as of December 2014
Holder Name
Holding
Allianz Global Investors Europe, GER
7.1 %
Threadneedle Asset Management, GBR
5.0 %
Montanaro Asset Management, GBR
4.8 %
OppenheimerFunds, USA
3.0 %
Financiere de l‘Echiquier, FRA
2.9 %
BNP Paribas Investment Partners Belgium, FRA
2.8 %
ING Investment Management Advisors, NED
1.7 %
Skandinaviska Enskilda Banken, DEN
1.5 %
Norges Bank Investment Management, NOR
1.4 %
JPMorgan Asset Management, GBR
1.2 %
Comgest, FRA
0.9 %
Henderson Global Investors, GBR
0.8 %
Credit Suisse, SUI
0.6 %
Deutsche Asset & Wealth Management Investment, GER
0.6 %
Lupus alpha Asset Management, GER
0.5 %
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
30
Analyst Coverage
Berenberg Bank
Dr. Scott Bardo
Phone: +44 20 32077869
Bryan, Garnier & Co
Mathieu Chabert
Phone: +33 170 365745
Close Brothers Seydler Research
Igor Kim
Phone: +49 69 977845615
Deutsche Bank
Gunnar Romer
Phone : +49 69 91031917
DZ Bank
Sven Kürten
Phone : +49 69 744792072
HSBC Trinkaus & Burkhardt
Jan Keppeler
Phone : +49 211 9102446
Kepler Cheuvreux
Oliver Reinberg
Phone : +49 69 75696140
Landesbank Baden-Württemberg
Volker Stoll
Phone : +49 711 12770568
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
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Financial Calendar 2015
01/21/2015
14th German Corporate Conference, Kepler Cheuvreux & UniCredit, Frankfurt, GER
03/03-04/2015
Morgan Stanley European MedTech & Services Conference, London, UK
04/14/2015
Publication of Annual Report 2014
04/29/2015
Publication of Interim Report as of 03/31/2015
05/06-07/2015
40th Annual Health Care Conference, Deutsche Bank, Boston, MA, USA
05/19/2015
UBS Pan European small & midcap Conference, London, UK
05/19-21/2015
Berenberg European Conference, Tarrytown, NY, USA
05/22/2015
Annual General Meeting, Pforzheim, GER
06/01-04/2015
Jefferies 2015 Global Healthcare Conference, New York City, NY, USA
07/29/2015
Publication of Interim Report as of 06/30/2015
09/08/2015
Sector Conference, Commerzbank , Frankfurt, GER
09/09-10/2015
Goldman Sachs European Medtech and Healthcare Services Conference,
London, UK
10/28/2015
Publication of Interim Report as of 09/30/2015
11/23-25/2015
German Equity Forum, Deutsche Börse Group, Frankfurt, GER
Subject to confirmation and amendments
Kepler Cheuvreux & UniCredit – 14th German Corporate Conference / Frankfurt/Main, January 21, 2015
32