NASDAQ: TECH
34th Annual J.P. Morgan Healthcare Conference 13 January 2016
Disclaimer Cautionary Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Except for historical information contained herein, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein relate to, among other things, future sales, earnings, return on equity, cost savings, process improvements, free cash flow, share repurchases, capital expenditures, acquisitions, benefits of investments and partnerships, business strategies and other matters. Such statements can be identified by words such as: “expected,” “expects,” “expect,” “forecast,” “would,” “estimate,” “will,” or similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results could differ materially from those stated or implied in the forward-looking statements. For a list of factors, risks and uncertainties which could make our actual results differ from expected results, please see our latest Annual Report on Form 10-K. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, as a result of new information, future developments or otherwise. This presentation also contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For definitions of applicable non-GAAP financial measures and reconciliations of non-GAAP financial information to GAAP financial information, see the Reconciliations of GAAP to Non-GAAP Financial Measures included in the Company’s financial reports on Forms 10-Q and 10-K and related press releases.
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EPIC TOOLS FOR EPIC SCIENCE
Empowerment Passion Innovation Collaboration
Bio-Techne Mission
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Fiscal Year Ends: June 30 FY 2015 Revenues: $452 MM FY 2015 Adj. Gross Margin: 71.6% FY 2015 Adj. Earnings: $127 MM FY 2015 Adjusted EPS: $3.40 Current Market Cap: ~$3.5B
Minneapolis, MN HQ 1400+ Employees Offices in North America, Europe, Japan and China
Glo
bal F
ootp
rint
Extensive product portfolio of Life Science reagents
Extensive applications expertise
Cytokines/GF
Immunoassays
Small Molecules
Protein Analysis Instruments
Automated Immunoassay Platform
Clinical Chemistry, Controls and Calibrators
Prod
ucts
Cliniqa
ProteinSimple
Novus Biologicals
CyVek
PrimeGene
Bionostics Re
cent
Acq
uisi
tions
Current Business Overview
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-5% 0% 5% 10% 15% 20% 25%
Consolidated
North America
Europe
China
Pacific Rim
Clin Controls
FY13
FY14
FY15
1Organic sales figures exclude the impact of acquisitions and foreign currency exchange rates 2Geographic growth only represents Biotechnology segment
Organic Sales Growth1,2
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Customers Served
Pharma Biotech Academia CROs Hospitals Foundations Government
Large Addressable Market Opportunities
>$10 Billion Addressable
Market 4-10% CAGR
Neuroscience $0.9B
Multiplex Testing
Platforms $0.7B
IVD Assays and Reagents
$3.6B
Bioprocessing and Media
$1.6B Oncology
$0.8B
Stem Cells $0.9B
Immunology $1.5B
Research Antibodies
$1.0B
Current Reportable Segments
~68% of Sales High 70s Gross Margin%
Low 50s Op. Margin%
~15% of Sales High 60s Gross Margin%
High single-digit Op. Margin%
~17% of Sales Mid 40s Gross Margin% Low 30s Op. Margin%
Note: All margin percentages have been adjusted to exclude impact of acquisition costs
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Legacy R&D Systems PrimeGene Novus
Biotechnology
Legacy R&D Systems Cliniqa Bionostics
Clinical Controls
Protein Platforms ProteinSimple Simple Plex
Protein Platforms Clinical Controls Biotechnology
Geographic Sites
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Divisions
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SIMPLE PLEX
Protein Platforms Clinical Controls Biotechnology
Biotech Division Products
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Proteins
Small Molecules
Stem Cell Products
StemXVivo®
ELISAs
Antibodies
Proteome
Profiler Arrays
Luminex
Biotechnology
HIGHEST-QUALITY PRODUCT PORTFOLIO
TRUSTED GLOBAL BRANDS
Clinical Controls Division Products and Services
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Urine Controls
Cell-Based Blood
Controls
Antigens and Antibodies
Assay Development
Chemistry and Immunology
Controls
HIGHEST-QUALITY REAGENTS SUPPLIER FOR IVD KIT MANUFACTURERS
TRUSTED CONTROLS AND CALIBRATORS MANUFACTURER FOR THE GLOBAL CLINICAL MARKET
Clinical Controls
Protein Platforms Division Products
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Simple Western™ Simple Plex Biologics
SIMPLE REVOLUTIONARY INSTRUMENTATION TO FACILITATE PROTEIN ANALYSIS
Protein Platforms
Strategic Plan
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FY2019 Revenue of $1 Billion
Ops. Margins 30-35%
Multiple Divisions
(4 -6)
China
Revenue >$100MM
Staff in Excess of
2,000
Implementation of Changes
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Long-Term Strategic
Goals
Business Infrastructure Improvements
Product Portfolio
Expansion
Key Staffing
Additions
Market Refocus and Geographic
Expansion
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• IT • Ordering Process • Website
Business Systems
• 3 Divisions • 3 Regions
Matrix / Subsidiary
Model
• R&D • Manufacturing Ops
Operational Efficiencies
Business Infrastructure Improvements
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Product Portfolio Expansion
• China-for-China • Low-cost manufacturing capabilities • >225K antibodies • Strengthen e-commerce and web
Biotech
• Clinical chemistry and immunology controls • Large kit-packaging capabilities • Diagnostics assay market capabilities
Clinical Controls
• Instrumentation market entry with patent-protected technology
• Automated immunoassay platform • Western Blot and Multiplex platforms
leverages content
Protein Platforms
Key Staffing Additions
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HR
CTO
Sales and Marketing
Divisional Leadership
Chief Financial Officer and Finance Team
APAC Leader
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Product Prioritization and Geographic Expansion
• Expanded sales force • Locally-made products • New GMP factory
China
• ProteinSimple ab validation program • Cross-selling CCD products • Simple Plex custom assay development
Leveraging Across
Organization
• Ensuring right products created • Product ideas from leaders in the field • Strategic advisory board
Global KOL and VOC
Programs
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Bio-Techne in Review