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Sustainability Approach Sample to Insight

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Page 1: Sustainability Approach - QIAGEN

Sustainability Approach

Sample to Insight

Page 2: Sustainability Approach - QIAGEN

We believe these three dimensions of sustainability are interlinked, reinforcing each other. We pledge to continually evaluate the potential green impact of our business, its economic influence and our corporate citizenship around the world. Our commitment to sustainability does not stop with formal regulations. There is much room for innovation in driving sustainable development in our industry, and we are resolved to continue to move forward.

Ethical FrameworkFinancial Return

Economic Progress

CorporateCitizenship

GreenDevelopment

SustainableDevelopment

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QIAGEN integrates sustainability throughout our business. We aim to save energy and reduce environmental impacts, to drive economic success with healthy, high-performance workplaces, and to make improvements in life possible as a good corporate citizen around the world.

The QIAGEN approach to sustainability

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QIAGEN Sustainability Approach 2017 | Introduction

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Making improvements in life that will last

At QIAGEN we have always believed that we are part of something bigger. In the early days of the biotech nology revolution, QIAGEN created innovative technologies for sample preparation that made scientific breakthroughs possible and molecular testing safer for lab personel and the environment. Now we are leaders in a new era, known as the Century of Biology. Understanding of the building blocks of life – DNA, RNA and proteins – is revolutionizing medicine and other areas of everyday life. Our mission is to make improvements in life possible, and QIAGEN Sample to Insight solutions offer lasting benefit for people around the world.

As discoveries and applications have multiplied in molecular biology, QIAGEN has expanded and evolved. We have transformed our portfolio – and culture – to deliver end-to-end, integrated Sample to Insight solutions unlocking valuable molecular insights from raw biological materials. QIAGEN creates value in scientific and clinical settings by integrating our advanced automation systems, state-of-the-art sample-prep solutions and broad menu of test content with industry-leading bioinformatics. Seamless, end-to-end workflows for analysis and interpretation of genomic data allow laboratories to achieve actionable insights more reliably, effectively and efficiently. This business is built to last, and we are focused on long-term opportunities to serve the growing need for molecular testing workflows across various customer classes.

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» At QIAGEN, we want to make the world a better place to live – not only through scientific discovery and application, but also through sustainable stewardship.«

We recognize that ongoing success for QIAGEN also depends on the sustainability of society’s resources, as well as continuous reduction of any negative impact from our business. Without sustainable development that includes economic, environmental and social dimensions, it is difficult to make lasting improvements in life. It is, therefore, vitally important for all of our stakeholders – employees, customers, patients, shareholders and communities – that we align our commercial business practices with the goal of acting responsibly in our social and natural environ-ments. We will always strive to achieve growth in harmony with economic, environmental, human and social dimensions.

QIAGEN’s 4,700 employees care about the impact of their work and are passionate about helping our customers to exceed their own expectations and make an enduring difference. We want to make the world a better place to live – not only through scientific discovery and application, but also through sustainable stewardship. Embracing sustainability as an integral part of corporate policy and as a measure for the success of our enterprise, we started publishing our approach to these activities in 2009. We know much remains to be done, so we invite you to visit our website regularly to learn more about our progress – step by step. Thank you for being part of our mission.

Peer M. Schatz, Chief Executive Officer

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QIAGEN Sustainability Approach 2017 | Introduction

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Protecting the environment, health and safety has always been a hallmark of QIAGEN. No other life sciences company has contributed more than QIAGEN to the replacement of toxic elements in sample preparation procedures. With green practices across the business, we continually hone our operations to protect the environment.

Green Practices

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Green Practices From the start, QIAGEN has set the standard for safe, environmentally sound methods of sample preparation – a ubiquitous first step in molecular biology applications. QIAGEN introduced the world’s first plasmid kits in the 1980s, innovative methods that have widely replaced highly toxic procedures that once posed serious threats to the environment and the health of people working in labs. Since then our commitment to protect and preserve natural resources has expanded well beyond enhancing product safety. Green initiatives are actively reducing the environmental impact of QIAGEN’s business around the world.

To meet our goals and limit the footprint of our business on the environment, we have introduced a broad panel of sustainability activities and programs.

Energy savings QIAGEN is committed to saving energy. We run simulations to reduce energy consumption and have installed sophisti-

Our commitment

Green actions

For QIAGEN, commitment to safe, environmentally sound practices comes with a culture of operational excellence – reinforced by training, decision-making and standard proce-dures. Operations employ a concept called QIAzen, derived from the Japanese word KAIZEN, which means “continuous improvement.” Key employees in Operations have received QIAzen training to identify and prioritize avenues to improve our manufacturing organization, initiate projects, and moni-tor implementation with cross-functional teams. By constantly optimizing workflows in manufacturing and production, QIAGEN reduces transportation, saves electricity and mini-mizes other impacts on natural resources.

cated energy recovery and control systems to provide only the minimum of power required for operations. Improvements encompass energy extraction from co-generators, better insu-lation, heat recovery and installation of intelligent building systems. Since 2003, a comprehensive process has helped facility managers continuously identify potential saving opportunities, plan and monitor implementation. Use of power-friendly equipment, sustainable selection of suppliers and optimized operational hours contribute to a high level of energy efficiency.

Actions taken to reduce power consumption in headquarters sites in the United States and Germany include light sensors in hallways, restrooms, storage areas and parking decks, as well as the use of energy-saving LEDs, replacement of incan-descent fixtures with low-energy-use 28-watt bulbs, and fixed runtime of heating, ventilation and air conditioning systems. In the European headquarters in Hilden, Germany, QIAGEN has invested 120,000 euros to replace fluorescent lamps with LED ones, which switch on automatically when a forklift enters the aisle. Not only has the light intensity has been reduced, but previously, fluorescent lamps were perma-nently on, whether a forklift was in the aisle or not, and every lamp had to be replaced yearly. The new lighting systems save as much as 72 percent in energy consumption and are

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QIAGEN Sustainability Approach 2017 | Green Practices

expected to save 225,000 – 230,000 kilowatt-hours of elec-tricity and 150 tons of carbon dioxide per year.

Green building Energy savings play a major role in QIAGEN’s building in vest ment decisions, implementing green standards by in corporating specifications for energy and water efficiency, air quality and materials. Site expansions including new buildings at our regional headquarters in Germany and the United States have achieved certifications under the U.S. Green Building Council’s LEED certification program. QIAGEN’s new facilities in Hilden are the first laboratory and the first pro-duction building in Europe to meet the high criteria for energy efficiency and earn the Gold-standard certification.

Transportation innovationMuch of the energy consumption associated with a business occurs beyond it own premises, so transportation of people and cargo is an additional focus.

At QIAGEN’s headquarters, discounted train and bus tickets encourage employees to use public transportation, and we have installed e-charging stations for cars and bikes. The pool of company cars has been changed to ecological and CO2-efficient models in a continuous adjustment process.

Low emissions play a critical role in the decision process for new company cars.

At most sites, video conferencing systems have been installed to encourage virtual team meetings and reduce travel between sites. In France, the collection of dry ice from cus-tomers upon delivery of our kits spares extra transportation and shipping. Some manufacturing machines have been placed at suppliers’ sites to reduce transportation-related impacts on the environment.

Water conservation Our main administration and production facility in the United States now uses “process” water produced during manufac-turing to cool the building. Hand-motion activated faucets have been installed in all restrooms, and all water coolers have been replaced with filtered water dispensers.

Paper reductionTo support responsible paper consumption, QIAGEN pursues a broad policy of reducing printed material as well as sus-tainable sourcing of paper products. Digital approaches to doing business are a major focus, and online tools and eCommerce sometimes make paper unnecessary. A recent initiative to replace paper invoices with PDFs, for example,

Incandescent fixtures have been replaced with low- energy-use 28 watt bulbs.

Printed multiple-page handbooks are replaced by single-sheet protocols and only available for download at www.QIAGEN.com.

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offers potential to save 680,000 sheets of paper a year – and save on mailing costs. QIAGEN also has implemented a project to replace printed multiple-page handbooks supplied with its kits with concise, single-sheet, quick-start protocols that include a link to complete versions of handbooks at www.QIAGEN.com. This action could reduce paper usage for each kit by an average of 90 percent, as well as reduc-ing printing and packaging costs. So far this project has been applied to multiple product lines.

QIAGEN is a member of the Forest Stewardship Council (FSC). For production of many printed materials, including packaging, the company has a policy to select suppliers that comply with FSC standards for printing processes and sus-tainable paper production.

Packaging and waste reduction QIAGEN has a long tradition of making our products safe and environmentally friendly, and QIAGEN’s procurement division has issued guidelines for suppliers requiring them to reduce packaging volumes by refraining from use of PVC and other potentially hazardous materials.

When the United Nations created the Globally Harmonized System of Classification and Labeling of Chemicals (GHS) to define and communicate the hazards of chemical products through labeling and material safety data sheets, QIAGEN also took action. In 2013, South Korea became the first coun-try in the world to enact regulations for labeling of chemical mixtures in accordance with the harmonized system. QIAGEN’s Asia Pacific team took ownership of a multi-departmental approach to reclassify the relevant hazmat kits for Korea, enabling QIAGEN to maintain the regional busi-ness – and overcome challenges that troubled many other enterprises.

The company uses biodegradable loose fill packaging made from 100 percent recycled polystyrene and has been taking positive measures to improve packaging. Since 2013, QIAGEN has substantially reduced kit volumes by using fewer inserts and optimizing design. This also helps to save manual operation time and transportation costs.

QIAGEN also plans to implement production of climate-neutral kit packaging. As climate change has become a global issue, climate-neutral means that the packaging is produced, used and disposed in emission-free ways, or with offsets elsewhere for unavoidable emissions.

» Our operations employ a concept called QIAzen, derived from the Japanese word KAIZEN which means ‘continuous improvement’.«

DOUGLAS L IU Senior Vice President, Head of Global Operations

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QIAGEN Sustainability Approach 2017 | Green Practices

– 225,000 – 16 million liters/year– 725 tons of CO2 were saved in 2015 as a result of a major CO2 initiative.

225,000 kWh is saved per year by replacing fluorescent lamps with LED ones.

of water are saved at our U.S. facility thanks to using wastewater produced in the manufacturing process to cool the buidling.

CO2

RecyclingAt most QIAGEN sites, waste reduction and recycling are standard business practices – part of our commitment to conduct operations in a sustainable manner and in accor-dance with regulations. Our U.S. headquarters recycles all cardboard, paper, batteries and commingled materials. The European headquarters and other sites in the region collect and return all packaging waste carrying the “Green Dot.” QIAGEN is proud of the achievement of key goals for recy-cling in our global operations.

Results and progress

QIAGEN’s commitment to environmentally sustainable devel-opment has enabled us to reduce our impacts significantly. Some key metrics:

• As a result of a major CO2 initiative, QIAGEN was able to save approximately 725 tons of CO2 in 2015, and we are committed to continually minimizing energy consumption across our operations.

• We were responsible for recycling about 925 tons of waste materials in 2015.

• QIAGEN has saved approximately 100 tons of paper since 2010. Despite expansion in production volume, the paper consumption has been reduced continuously – mainly by transition from printed materials to a wider range of online tools available at www.QIAGEN.com.

• In the United States, the proportion of post-consumer waste paper used in production has increased to 75 percent.

• Our U.S. production facility saves approximately 16 million liters of potable water per year (more than 43,600 liters a day) by using wastewater produced in the manufacturing process to cool the building.

• In our European headquarters in Hilden, regenerative elec-tricity accounts for approximately 11 percent of total ener-gy expenditure.

• Reductions in use of HVAC systems for administrative and support areas during off hours have helped QIAGEN North America reduce daily energy consumption by up to 30%.

These are just preliminary results. We are constantly identify-ing new opportunities for the preservation of our natural resources. At QIAGEN, the process never stops.

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QIAGEN’s mission to make improvements in life possible focuses our attention on the long-term welfare of society. Our commitment to Corporate Social Responsibility focuses on open and equal access to lifesaving molecular diagnostics for people around the world. We also want to help ensure that communities where we work can flourish, by supporting local initiatives aiming to improve lives in cultural, social or scientific settings.

Corporate Citizenship

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Corporate Citizenship

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QIAGENcares aims to provide cutting-edge Sample to Insight solutions to people worldwide, regardless of their economic or social status.

Corporate Citizenship Because we care, QIAGEN employees go beyond our daily routines to aid public health efforts, as well as humanitarian and scientific quests, worldwide. Closer to home, we support local communities where we do business, helping improve lives in cultural, social or scientific settings. We strive for a healthy, high-performance work environment that enables QIAGEN employees to experience professional and personal fulfillment.

Our commitment

QIAGENcares is the company’s Corporate Social Re spon-sibility program, an umbrella for support of initiatives that improve lives by fighting diseases in which our products can play an important role. We collaborate with non-govern-mental health organizations, local nonprofits and ministries of health to help ensure efficient distribution of donations. QIAGENcares aims to provide access to cutting-edge molecu-lar technologies to people worldwide, regardless of their eco-nomic or social status, including diagnostic solutions designed especially for settings with limited medical resources.

Good global citizenship

While QIAGENcares includes a broad range of initiatives, we have a strong commitment to fighting cervical cancer through testing for infections with the human papillomavirus (HPV). HPV is the primary cause of cervical cancer, which claims nearly 300,000 lives every year, 80 percent of them in developing countries. Studies have shown that access to advanced screening methods, such as the company’s HPV tests, can significantly reduce cervical cancer incidence and mortality rates – yet an estimated 1 billion women worldwide do not receive cervical cancer screening. QIAGEN works closely with global and local public health partners to select and serve appropriate recipient groups most effectively.

An innovative aspect of QIAGEN’s commitment to access for lifesaving cancer screening is our careHPV Test, an adapta-tion of our state-of-the-art HPV test specifically designed for use in low-resource settings, such as developing areas that lack running water. The careHPV Test was developed in col-laboration with the nonprofit health organization PATH with support from the Bill and Melinda Gates Foundation. The

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QIAGEN Sustainability Approach 2017 | Corporate Citizenship

careHPV system (test kits and an instrument to read results) offers HPV detection in a matter of hours – a critical charac-teristic for women who travel to clinics from isolated villages and may need to be treated the same day. Both QIAGEN HPV screening technologies – careHPV and the “gold standard” digene HPV Test – are playing a key role in reducing cervical cancer worldwide.

Examples of recent QIAGENcares initiatives: • Through the careHPV donation program, QIAGEN placed

18 screening systems in Nicaragua, Honduras and El Salvador, which are being used to screen thousands of women in partnership with PATH and local ministries of health. The goal is to help the countries be able to sustain the testing long-term. In El Salvador, QIAGEN is working with the Ministry of Health and an NGO, Basic Health International, toward a near-term screening goal of 30,000 women. This program also includes a study that involves women taking the sample themselves.

• QIAGENcares also is active in Africa and has placed six careHPV instruments (two each) in Tanzania, Uganda and Kenya, where non-governmental organizations are evaluat-ing the careHPV Test for incorporation into their programs for women’s healthcare. In addition, QIAGEN sent five careHPV systems to Tanzania for a study in partnership with the Ministry of Health and the World Health Organization’s International Agency for Research on Cancer.

• In Vanuatu, a group of islands in the South Pacific, QIAGEN has donated careHPV Tests for a national screening program. In Vanuatu, cervical cancer is the second leading cause of cancer, making screening and vaccination a critical mission.

Support of local initiatives QIAGEN supports a broad range of activities in communities where our businesses are based. These include sponsorship of health walks, music festivals, science education, disease awareness campaigns, installation of school laboratories

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and promotion of biology in school curricula. Our local engagement goes beyond financial. In Hilden, for instance, QIAGEN is collaborating with the local Rotary Club to help integrate refugees from Syria and other war-torn countries through a program that includes language and cultural train-ing, assessment centers, and internships at QIAGEN. Hilden also works with Hephata, a local institution for citizens with disabilities, who undertake a broad array of operational tasks for the company, including certain packaging, produc-tion and cleaning responsibilities. In Maryland, QIAGEN employees committed more than 1,000 hours of volunteer time in 2016 to meeting community needs. Our Community Service Committee mobilizes volunteers and provides com-pany funds for projects that improve the lives of people locally and nationally.

Humanitarian and environmental projects QIAGEN’s leadership in Sample to Insight solutions leads us into a wide variety of scientific collaborations. For example, we worked with the International Commission on Missing Persons (ICMP) for the identification of people missing from the war in Srebrenica (Bosnia in 1995). Thanks to QIAGEN forensic technologies, ICMP scientists were able to extract

DNA from challenging bone samples and identify thousands of victims, providing closure for families. Since then, QIAGEN has maintained its involvement with ICMP’s global efforts to identify missing persons.

QIAGEN has also supported groundbreaking research into the long-term environmental impacts of radioactive contami-nation from disasters in Chernobyl, Ukraine, and Fukushima, Japan. In 2016 QIAGEN provided products to the MetaSUB International Consortium aiming to analyze the urban micro-biome using DNA and RNA samples from subway systems, buses and parks in 54 cities around the world. QIAGEN also provided molecular technologies to help the Cheetah Conservation Fund protect the endangered species in Africa by generating insights into populations and ecological inter-actions of the big cats. In many different ways, QIAGEN products make improvements in life possible.

» QIAGEN’s innovative Sample to Insight solutions are making improvements in life possible around the world.«

TH I ERRY BERNARD Senior Vice President, Head of Molecular Diagnostics Business Area

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QIAGEN Sustainability Approach 2017 | Corporate Citizenship

Results and progress

QIAGEN’s innovative Sample to Insight solutions are making improvements in life possible around the world, both through our commercial presence in Molecular Diagnostics and Life Sciences and through our corporate citizenship initiatives. The two are strategically linked, as customers recognize the value of QIAGEN’s collaborative approach and see novel applications of our unique molecular technologies.

Corporate citizenship also has a positive effect on employees’ loyalty and identification with the company. In our recent anonymous “pulse check” surveys, about two third of employees said they would recommend QIAGEN as an employer of choice. The survey showed an overall job satis-faction rating of 68 percent across all functions and loca-tions. A satisfied and loyal workforce is a key asset for creat-ing sustainable value in the years to come. More than the awards QIAGEN has received, we are proud of the growth we see in employees from our investments in personnel development, career management and benefit programs. QIAGEN is known as an employer of talented, passionate and motivated employees.

The number of employees increased by 74% during the last 10 years due to QIAGEN’s rapid growth and expansion.

74 %1,0001,000 hours of volunteer time was committed in 2016 by QIAGEN employees in Maryland.

A survey showed an overall job satis-faction rating of 68 percent across all functions and locations.

68 %

VOLUNTEER T IME

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QIAGEN contributes to society’s economic sustainability primarily by nurturing our business for the long run. Our mission extends beyond creating shareholder value to making improvements in life possible for global and local stakeholders – providing jobs, driving growth, enhancing healthcare and other areas of life, and funding public services.

Economic Progress

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QIAGEN’s focus on making improvements in life possible instills a long-term orientation throughout our business. The 21st Century has been called the Century of Biology, and we are a leader in the emergence of molecular technologies as a driving force in scientific progress and human health. Over three decades, QIAGEN has strategically expanded across the continuum from discovery research to translational and clinical research, to routine use of our Sample to Insight solu-tions in healthcare and other applications. We are commit-ted to making a difference by investing in the sustainability of our business.

Economic actionsQIAGEN’s active commitment to its workforce is a founda-tion to our success. Our insistence on ethical business prac-tices is recognized by our business partners, and our persis-tent innovation is a key to delivering Sample to Insight solu-tions successfully to our customers.

Employee training and retention QIAGEN treats employees as our most important resource, and our focus on human capital drives economic sustainabil-ity. The exceptional talent, skill and passion of our people are key to our long-term success and growth. Employee

Economic Progress Lasting business success for QIAGEN demands the efficient use and sustained cultivation of all of our assets and resources – human capital, strategy for innovation and growth, brand equity in our markets, and responsible business practices. All of these factors contribute to creating sustainable value for all of our stakeholders.

Organizational commitment

development at all levels is viewed as an integral factor in creating lasting value for our customers, patients, colleagues, partners and shareholders. We have established transparent career paths with the QIAGEN Profile Navigator, which defines jobs, core competencies and approaches to advance-ment across the global organization. QIAGEN’s global Performance Enhancement System (PES) creates a clear framework of regular, one-on-one review sessions for each employee and their manager to discuss career development. These include discussions of goals and achievement levels, assessment of relevant competencies, as well as training needs and career planning steps.

Professional Training & Development at QIAGEN is an ongo-ing process that reaches all employees, cycling from the PES discussion to training participation and learning transfer, and then back to PES (see chart). The recently introduced QIAGEN Academy, our global e-learning portal, expands opportunities with a flexible blend of online learning and in-person training. A series of regional training programs augment these opportunities. For example, QIAGEN China has an innovative effort called the Leadership Acceleration Program to develop middle managers into the future leader-ship of the company. A work environment that empowers

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QIAGEN Sustainability Approach 2017 | Economic Progress

and involves employees supports our global goal of being the industry’s employer of choice by attracting and develop-ing top talent and teams.

Leadership developmentWe recognize the importance of cultivating leaders at QIAGEN who can serve as role models to create a culture in which employees feel inspired, motivated and engaged. Transformational leaders create meaningful change and truly make a difference. To create a career path from first-line management into the senior ranks, we give special attention to development in entrepreneurial and leadership competen-cies such as strategic thinking and acting, decision making, risk taking, change management, performance management and employee development. QIAGEN has implemented a pilot program to identify and systematically develop the most promising managers to prepare for senior positions.

We also offer the opportunity to participate in the QIAGEN Executive MBA Business Integration Program in cooperation with the University of Würzburg, Germany, providing pro-fessionals with a wide range of management skills and knowledge essential to an executive career. Participants study in an international environment with colleagues from

around the world. Two modules of the program are con-ducted with U.S. partners: Boston University and Florida Gulf Coast University. A total of 76 QIAGEN employees will complete the MBA program by the end of 2018.

Compensation systemQIAGEN has implemented frameworks for performance-based compensation, equity-based compensation and incen-tive programs designed to stimulate new ideas and innova-tion. The QIAGEN bonus system integrates every employee, allowing the entire staff to benefit directly from the compa-ny’s economic success. Our equity incentive program is designed to encourage share-holding employees to work for the company’s long-term benefit by providing incentives for sustainable success.

Workplace health QIAGEN views the health of our employees as directly related to the health of the company – increased job satisfac-tion, improved morale, reduced injuries, and increased pro-ductivity are just some of the benefits of a healthy work environment. In most headquarters locations, QIAGEN regu-larly offers “health days” where employees are invited to receive free screening and nutrition programs, and medical

»180° Process«

Personnel development at QIAGEN is an ongoing, multi-stage process reaching all employees.

PESReview

TrainingPreparation

Phase

TrainingRegistration

TrainingInvitation

TrainingParticipation

TrainingFollow-upMeasures

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check-ups. QIAGEN provides in-house gyms, sports courses coached by professional trainers, on-site soccer fields, beach volleyball courts and table tennis, as well as mobile mas-sages for relaxation. All employees have access to medical care, including flu inoculations. All female employees have free access to screening for HPV. QIAGEN also regularly offers smoking cessation and weight loss programs.

Work-life balance QIAGEN provides services to help employees balance their personal lives with the company’s dynamic work environ-ment, including in-house corporate child care and sabbatical programs. Flexible work hours apply to all employees except those in functions that require on-time presence (such as production). The company also implemented voluntary work-shops for employees to learn about stress recovery, bal-anced diet, exercise, relaxation and how to balance work and personal life effectively.

Strategy for growth

QIAGEN pursues a corporate strategy designed to drive long-term growth. We focus on Sample to Insight solutions to help our customers transform raw biological materials into valuable molecular insights and use this core competency to sell our products in several markets. We have a leading position in each of these customer classes: Molecular Diagnostics, Applied Testing, Pharma and Academia. Most of these markets are underpenetrated, providing strong potential for enduring growth. This is particularly true for clinical diagnostics in human health, where molecular meth-ods are increasingly replacing traditional solutions. Our flexible strategy seeks to accelerate growth and drive future profitability by developing innovative new platforms, con-sumables and bioinformatics, partnering with researchers and Pharma companies, and acquiring companies or tech-nologies to complement our portfolio. QIAGEN follows a rigorous business development process to add value through opportunities in fast-growing customer segments and emerg-ing regional markets.

Innovation management Just as QIAGEN’s kit innovation revolutionized molecular biology in the 1980s, we are committed to expanding our global leadership in Sample to Insight solutions through ongoing innovation. Relative to sales, our research and development investments are among the highest in the

QIAGEN cooperates with the University of Würzburg for an executive MBA program for selected employees.

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QIAGEN Sustainability Approach 2017 | Economic Progress

» A clear and concise strategy, a strong brand and our relentless focus on innovations to address customer needs are the cornerstones of QIAGEN’s past success and future growth.«

DR . THOMAS SCHWE INS Senior Vice President, Head of Human Resources and Life Sciences Business Area

industry. About 1,000 employees in research and develop-ment work in QIAGEN centers of excellence on three con-tinents. We understand innovation as a comprehensive, multi-level process that is organized cross-departmentally and transparently.

QIAGEN has embraced “agile” development, moving through iterative stages to create a new product, with rapid adjustments based on empirical feedback, to make R&D as effective and efficient as possible. Development of the GeneReader NGS System benefited greatly from an agile, collaborative process. Working with laboratories in QIAGEN’s early adopter group, we identified customer needs up-front and adapted the platform. By innovating based on customer needs, we created a well-received Sample to Insight solution that delivers efficient, end-to-end NGS workflow.

The recent transformation of our eCommerce capabilities has allowed us to drive growth by providing customers with seamless online care. QIAGEN has embraced digital trans-formation throughout our business. Our teams are using digital tools to improve efficiency and effectiveness in both internal and external interactions.

Brand equity Customer satisfaction and loyalty are fundamental to long-lasting success, and QIAGEN has created one of the stron-gest brands in the industry. We are committed to further developing these relationships with customers around the world. In 2014 and 2015 QIAGEN undertook a major rebranding effort reflecting our “Sample to Insight” strategic framework. It is based on our belief that the real value of genomics is not in the billions of base pairs sequenced, but in the actionable insights that enable scientists to achieve breakthroughs in knowledge and clinicians to make accurate diagnostic and treatment decisions. With automated work-flows and end-to-end integration of bioinformatics, we deliver Sample to Insight solutions accessible to laboratories large and small. In addition to QIAGEN’s corporate brand, we carefully steward the brand equity of individual products, including those acquired from other companies, with a cen-tralized approach to ensure that the external image of QIAGEN is consistent for all of our customers.

Responsible business practicesConducting business lawfully, ethically and with high integ-rity are undisputed fundamental values and principles for the long-term success of any company. QIAGEN takes this to heart, and we believe we are more committed to ensuring compliance with these business principles than many other

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Results and progress

QIAGEN is uniquely positioned to address the significant growth opportunities in the life sciences and diagnostics markets. As the molecular revolution transforms medicine and other fields of endeavor, QIAGEN’s market leadership builds on our global footprint, portfolio of solutions across the value chain from sample processing to actionable insights, and expertise in leveraging our core capabilities for all customer classes. Molecular biology continues to find new applications, and we keep innovating to maintain our global leadership in sample technologies for even the most advanced needs. QIAGEN has transformed our portfolio to accelerate growth with a strategic focus on several product categories that are driving our sustained development.

The successful management of knowledge is a key driver for sustainable innovation and a strong indicator of the success of QIAGEN training and retention programs. The central ele-ment of our initiatives for growth and effectiveness has been to expand, develop and strengthen QIAGEN’s leadership and talent base. In a typical year, more than 1,600 employ-ees worldwide participate in more than 35,000 hours of training – continuing to develop our talent. In Germany, QIAGEN has been recognized as a Top Employer for sev-eral years running, including 2017, based on evaluation of a broad range of HR practices by the CRF Institute, an inde-pendent coalition of human resource experts. The award

companies. QIAGEN has established a comprehensive Compliance Program under the leadership of a Chief Compliance Officer, supported by a Compliance Committee that coordinates our efforts, consisting of managers from Legal, Internal Audit, HR and Regulatory functions.

The Compliance Program translates our Code of Business Conduct and accompanying corporate compliance poli-cies – as well as applicable legal, regulatory, and ethical requirements – into clear, precise, understandable guidelines for our employees. These policies are collected in a Global Policy Manual, which is provided to all employees world-wide. Online training reaches all employees, supported by multiple communication resources. We have established a hotline for reporting accounting-related concerns on an anonymous basis in good faith. We also offer a direct email and telephone hotline for employees to address questions or make suggestions for our Compliance Program.

One area of compliance that has received public attention involves conflict minerals. QIAGEN has performed an exten-sive inquiry into the company’s supply chain to ensure that no conflict minerals from the Democratic Republic of Congo or adjoining countries are used in the company’s laboratory instruments. Further information is provided in the company’s public financial disclosures.

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QIAGEN Sustainability Approach 2017 | Economic Progress

was given against a background of significant changes at QIAGEN. In Maryland, QIAGEN has won several Alliance for Workplace Excellence recognitions. QIAGEN has an enduring commitment to being an employer of choice and further enhancing our position as a great place to work.

The successful launch of our innovative GeneReader NGS System in late 2015 demonstrates the value of QIAGEN’s agile development approach as we create novel Sample to Insight solutions to meet needs in the diagnostic and life sci-ence markets. In 2016 the GeneReader NGS System was recognized for excellence in the healthcare sub-category of the Red Dot Award: Product Design program, as well as garnering an Instrument Business Outlook (IBO) Bronze Award for industrial design. This innovative new solution for Sample to Insight next-generation sequencing is rapidly gaining adoption from customers.

QIAGEN’s brand has become synonymous among customers with the highest quality and trust. We regularly conduct surveys among laboratories to measure our brand equity and image compared to other companies in the industry. In the December 2015 survey, molecular diagnostics laborato-ries globally ranked QIAGEN No. 1 in overall brand image by a significant margin and No. 1 in the factors most likely to influence buying decisions, citing our high quality of

7635,000 1st

35,000 hours of training are completed by our employees in a typical year.

76 employees in total will complete QIAGEN’s Executive MBA course by 2018.

In our most recent survey, molecular diagnostics laboratories ranked QIAGEN No. 1 in overall brand image.

products (71 percent), “best value for money” (77 percent), and fast and accurate delivery of products (77 percent). In the competitive life sciences marketplace, QIAGEN again led in overall brand image (53 percent) and ranked in the top three companies among our peers for all major factors influencing purchases. The impact of strong brand reputation and familiarity goes well beyond customer recognition. These values also help attract new employees, expand leadership and increase market share, while reducing costs and building competitive advantage. All of these factors make QIAGEN an economically and financially sustainable company.

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QIAGEN is the leading global provider of Sample to Insight solutions that enable customers to gain valuable molecular insights from samples containing the building blocks of life.

Our sample technologies isolate and process DNA, RNA and proteins from blood, tissue and other materials. Assay technologies make these biomolecules visible and ready for analysis. Bioinformatics software and knowledge bases interpret data to report relevant, actionable insights. Automation solutions tie these together in seamless and cost-effective workflows.

QIAGEN provides solutions to more than 500,000 customers around the world in Molecular Diagnostics (human health-care), Applied Testing (forensics, veterinary testing and food safety), Pharma (pharma and biotech companies) and Academia (life sciences research). As of December 31, 2016, QIAGEN employed approximately 4,700 people in over 35 locations worldwide. Further information can be found at www.QIAGEN.com.

QIAGEN at a glance

Molecular Diagnostics Physicians, hospitals and health care providers use QIAGEN technologies to save lives and fight disease. Our products support disease prevention such as screening women for risk of cervical cancer; profiling patients to pinpoint many diseases; personalized healthcare to guide treatment decisi-ons; and point-of-need testing to provide on-site diagnosis.

Academia Researchers at life science laboratories around the world depend on QIAGEN to advance our understanding of the molecular basis of life. Customers include universities and re-search institutes.

50 %Molecular Diagnostics

9 %Applied Testing

19 %Pharma

22 %Academia

Customer Classes / Percentage share of 2016 net sales

Applied Testing Professionals in fields such as human identification and forensics, food testing and veterinary medicine use QIAGEN technolo-gies in commercial applications beyond human healthcare. Our products are helping to solve crimes, secure food supplies and detect potentially devastating livestock diseases.

Pharma Scientists in the phar maceutical and biotechnology industries look to QIAGEN to advance gene-based drug discovery and dev elopment, supporting the creation of new medical breakth-roughs.

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ExperienceQIAGEN was founded in 1984 by scientists from the Heinrich Heine University in Düsseldorf, Germany.

LocationsQIAGEN operates 35 locations in over 20 countries and has more than 60 sales offices worldwide.

ProductsQIAGEN markets more than 500 core products.

PatentsQIAGEN’s intellectual property portfolio encompasses more than 2,200 patents and licenses.

SalesQIAGEN net sales surpassed $1.3 billion in 2016.

CustomersQIAGEN serves more than 500,000 customers worldwide.

$1.3 billion

35

500

2,200

4,700

500,000

1984

EmployeesQIAGEN now employs a staff of more than 4,700 worldwide.

CORPOR ATE COM MUNICAT IONS Phone worldwide: + 49 2103 29 11826 Phone U.S.: + 1 240 686 7425 Email: PR @ QIAGEN.COM PR.QIAGEN.COM

Q IAGEN ON THE WEB www.QIAGEN.com

PUBL ICATION DATE May 2017

Imprint CRED I TS Design 3st kommunikation, Mainz www.3st.de Concept Green Piece Consulting, Connor Liu

Editor in Chief QIAGEN, Przemyslaw Jedrysik Editors Dave Roknic, Richard M. Johnson

Photography Andreas Fechner

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