tecan group ag dr. rudolf eugster,...

UBS Global Life Sciences ConferenceTecan Group AGDr. Rudolf Eugster, CFO

September 20, 2011

September 20, 2011 / p2 / UBS GLSC

Contents

• Introducing Tecan

• Strategic Growth Drivers

• Financials H1 2011 & Outlook


Introducing Tecan

• Provider of instruments and workflow-solutions to the world’s pharma, biotech, diagnostic and forensic laboratories and companies

• Our solutions accelerate, automate and enhance the processes in state-of-the-art life sciences laboratories

• Global leader in laboratory automation for 30 years

• Leading provider of OEM instruments and components

• HQ in Switzerland, 3 manufacturing and R&D sites; ≈1,100 employees; maintaining a sales and service network in 52 countries

• Listed at the SIX Swiss Exchange (TECN; TECN SW)


Life Sciences Business

Tecan’s Products, Business Structure and Markets

• Focused on all end-user activities• Products marketed under the Tecan

brand through own sales & service organizations and distributors

Partnering Business• Focused on all OEM activities• Products sold by partners under

their own brand

Life Science Research Diagnostics Forensics Applied

Markets


Contents





Life SciencesBusiness

PartneringBusiness

Strategic Drivers for Sustainable Profitable Growth

High-Value Services & Consumables

Increased Innovation to Drive Organic Growth

Geographic Expansion into Growth Markets

Diversified Industry Segments & Broad Application Spectrum

In-Licensing and M&A Opportunities

Expanded Project Pipeline

Sales ChannelLeverage


Life

Sci

ence

sB

usin

ess

Strategic Growth Drivers for the Life Sciences Business

Innovation• New family of liquid handling

platforms and new modules • New detection instruments• Applications & workflow solutions• Plastic consumables• FEMS Kit and System

Geographic Expansion

• Asia; in particular China • South America• Eastern Europe• Near & Middle East

• Various co-operation models in Life Science Research and Forensics to provide standardized workflow solutions

• Co-development and co-validation of market leading applications

Partnerships for Workflow Solutions

• Leveraging Tecan’s sales channels for innovative 3rd party products

• Complement product portfolio• Realize cost synergies

Slide 8

Slide 9Sales Channel Leverage


Applications & Integrated Workflow SolutionsLi

fe S

cien

ces

Bus

ines

s

Software

User Interfaces

Modules 3rd Party Devices

Consumables

ReagentsInstruments

Services

Quality & Regulatory

Provided by Tecan Provided by Partner


Leveraging Tecan’s Sales Channels

• Tecan and HP to provide faster, more accurate drug screening

• Companies to market new drug-dispensing solution for pharmaceutical testing

• Tecan will provide exclusive sales, marketing, service and support for the instruments and consumables

• Started quoting and taking orders; first shipments in a few weeks

• Exclusive distributor agreement for Attana's biosensor instruments and assay technology in North America

• Attana’s biosensor technology allows in-depth analyses of molecular interactions in a wide variety of research applications

• Begun marketing in H1 2011

Life

Sci

ence

sB

usin

ess


Strategic Growth Drivers for the OEM Business

• Today majority of OEM market is „captive“, i.e. instruments developed by IVD & LSR companies

• Trend towards outsourcing • Focus on faster time to market,

cost and existing service network• Innovative research technologies

transitioning into regulated Diagnostics

addressable„open“ market1

„captive“~$ 6bn*

~10%*

*Tecan estimates; 1“open” market is excluding clinical chemistry analyzers

OEM Market

2010 2015

~20%*

~$ 8bn*

0

20

40

60

80

100

120

140

160

2005 2008 2009 2010

OEM Business End-user Business

CH

F (m

io)

Components Instruments, Services & Consumables

43.7%30.8%

H1 20112009

OEM sales OEM as a % of total sales

Par

tner

ing

Bus

ines

s

37.8%

2010•Total sales for all periods are from continuing operations only

CAGR: 10.5%

CAGR: 14.4%


Tecan’s Broad OEM Offering

Dedicated Solutions

OEM Components

Cus

tom

erS

ervi

ce &

S

pare

Par

ts

Plastic

Consum

ables

Platform-based Solutions

Integrated Solutions• Concepts developed by Tecan and showcased to potential partners• Integrating instrument, plastic consumables and enabling reagents

Par

tner

ing

Bus

ines

s

P14 P16Under development


P14 & P16: Two Major OEM Agreements

• Building on established partnership with global diagnostics company• Tecan to develop and supply a next generation dedicated diagnostics instrument and a

corresponding plastic consumable• Tecan is pre-financing the development costs; 50% repaid by the diagnostics company

upon launch and 50% one year after launch• Sales potential* estimated to be more than CHF 80m over first 5 years

(= purchase commitment)• Supply of first instruments for commercial launch expected in late 2012

Par

tner

ing

Bus

ines

s

P14 (announced 11/2010)

* Upon successful completion of development

• Agreement with new OEM customer, a global leader in a fast growing field of diagnostics• Tecan to develop and supply a next generation dedicated diagnostics instrument • Development fully funded by the diagnostics company• Sales potential* estimated to be more than CHF 100m over first 5 years• Supply of first instruments for commercial launch expected “within the next 24 months”

after signing the agreement

P16 (announced 05/2011)


NeoPlex4(Newborn)

Signed OEM Development & Supply Contracts2010 2011 2012 2013

Liquid Handling SolutionsSupply of 9 instruments

= anticipated commercial supply= commercial supply

Par

tner

ing

Bus

ines

s

= R&D and validation

ELISA platform for MUREX line(Infec. diseases)

Detection InstrumentsSupply of 6 instruments

Recently launched:Qubit 2.0(Genomics)

Configuration 1 Configuration 2 Configuration 3(MDx)

Under development / recently launched:DNA Extractor(MDx) High Throughput HTA

Mid Throughput MTA

P16

P14

Enigma ML(PoC MDx)


Our OEM Instrument Partners

Liquid Handling Solutions

Detection Instruments

Par

tner

ing

Bus

ines

s


Strategic Growth Driver: Services & Consumables

0

20

40

60

80

100

120

2008 2009 2010

Services & Consumables salesC

HF

(mio

)

Services Consumables Services & Consumables Instruments

S&C as a % of total sales

31.2%

2009 2010

30.6%

Life

Sci

ence

sB

usin

ess

Par

tner

ing

Bus

ines

s

Goal 2014

40%

• Examples for sales per year:• Diagnostics: CHF 10-15K (e.g. EVOlyzer, M2000)• Forensics: CHF 20K (e.g. HID EVOlution)• Life Science Research: CHF 50K

(MCA 384 for high-throughput screening)

• Agreement with HP to commercialize HP D300 Digital Dispenser including consumables

• Development of application-specific, proprietary consumables underway (e.g. F3/FEMS)

• Individual process steps taking place directly within consumable itself

•Total sales for all periods are from continuing operations only


Contents





H1 2011: Strong Business Performance

020406080

100120140160180200

2010 2011

Rest of WorldAsiaEuropeNorth America

Sales

CH

F (m

io)

CH

F (m

io)

0

5

10

15

20

25

2010 2011

EBITNet Profit

Profitability

• Net Added Value Index (NAVI) = (EBIT + personnel expenses)/personnel expenses• Results from continuing operations only

• Substantial sales growth• +12.3% in local currencies; +2.2% in CHF • Life Sciences Business (end customers)

+18.1% in local currencies• Partnering Business (OEM customers)

+5.7% in local currencies• Services & Consumables +13.7% and

Consumables only +19.7% in local currencies• Order Entry +12.0% in local currencies; +1.3% in

CHF; highest Order Backlog in Tecan’s history

• Strong profitability• EBIT margin of 11.5%• Corresponding to EBIT margin of 13.7% at

H1 2010 constant currencies• Increased investments in R&D by 2.5% of sales• Significantly increased Net Profit margin to

12.8% of sales; EPS at record level


Outlook for Full Year 2011

Mid-single-digit sales growth in local currencies

Sales FY 2011 Profitability FY 2011As of March 10, 2011

EBIT Margin of 12-13%Based on average FX rates of:1.30 EUR/CHF and 1.00 USD/CHF

Sales forecast increasedSales growth in local currencies inthe high single digits

Updated guidance as of August 18, 2011

Profitability target confirmedEBIT Margin of 12-13%Based on average FX rates of:1.20 EUR/CHF and 0.85 USD/CHF


Next Events2011:December 1: Analyst & Investor Day

2012:March 8: Full Year 2011 financial resultsApril 18: Annual Shareholder Meeting

ContactMartin Braendle

Head of Corporate Communications & Investor Relations

Phone: +41 (0) 44 922 84 30

[email protected]

www.tecan.com

Safe Harbor StatementAll statements in this presentation not referring to historical facts are predictions of the future and constitute no guarantee whatsoever of future performances. They are subject to risks and uncertainties including, but not limited to, future global economic conditions, exchange rates, legal regulations, market conditions, activities of competitors and other factors outside the Company’s control.

Tecan Group AG is making all efforts to include accurate and up-to-date information into this presentation. Yet, it cannot be ruled out that omissions or errors might have occurred. Therefore, Tecan Group AG cannot make any representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided in this presentation. Changes in this presentation can be made any time without notice. All mentioned trademarks are protected by law. © Tecan Group AG, Tecan Trading AG, Switzerland, all rights reserved.

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