berenberg european - stratecir.stratec.com › stratec › pdf › pdf_id › 422437.pdf ·...

Tarrytown, May 24, 2016

Berenberg

European Conference

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.

2 www.stratec.com Berenberg European Conference –


www.stratec.com 3

AGENDA

OVERVIEW AND BUSINESS MODEL

THE IVD MARKET

FINANCIALS

FUTURE GROWTH

Berenberg European Conference –


www.stratec.com 4

OVERVIEW AND

BUSINESS MODEL



Overview & Business Model Financials The IVD Market Future Growth

5

STRATEC AT A GLANCE

Market leader in automation solutions for the

diagnostics industry

Listed on TecDAX (Deutsche Boerse)

583 employees worldwide (+ 200 Diatron)

More than 13,000 systems installed globally

Revenue € 146.9 million in 2015

Revenue growth forecasted

to € 150 - € 154 million in 2016 (+ Diatron)

www.stratec.com Berenberg European Conference –



• Market leader in automation solutions in the diagnostic

industry

• Broad installed base of more than 13,000 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: 6%

• Dividend payments raised over 11 consecutive years

INVESTMENT SNAPSHOT

6

“LIAISON XL” for DiaSorin




7

UNIQUE MARKET POSITION

STRATEC IN THE IVD VALUE CHAIN

Diagnostic Companies

Blood Banks, Laboratories

Patients

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

Laboratories performing tests and offering service to doctors and patients using reagents from diagnostic companies

Growth drivers:

• Aging population

• Developing healthcare systems world wide

• High volume of new tests




8

STRATEC provides instrumentation, software and automation solutions

– OEM development and manufacturing

– More than 2,300 fully automated analyzer systems manufactured in 2015

– 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

BUSINESS MODEL

“PANTHER” for Hologic Gen-Probe




9

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

SECURING RETURN ON INVESTMENT

“Simoa HD-1” for Quanterix



www.stratec.com 10

THE IVD MARKET




80%

5% 15%

Reagents / Chemistry

Instrument Services

Instrumentation

11

IVD MARKET SEGMENTS / IVD Market: ~ 50 billion USD in 2015

High Throughput

Low Throughput

Total instrumentation

~ 7.5 billion USD

Market by product type

Number of systems



CAGR 2013 – 2018:

IVD Market: 4%

Molecular Diagnostic: 8% Immunodiagnostics: 4%

Hematology: 2 % Blood bank: 6 %

Source: The worldwide market for In Vitro Diagnostic Tests, 9th Edition.

Market by sector

STRATEC‘s main technologies Other segments of IVD *without blood glucose test devices


OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET

Total

instrumentation

~ 7.5 billion

USD

12

In House

64 %

Outsourced

36 %

In House

73 %

Outsourced

27 %

2010 2015 2020

In House

56 %

Outsourced

44 %

Source: Own estimates based on historical market data and recent industry trends




13

BENEFITS OF OUTSOURCING

STRATEC’s partners concentrate on their

core competences

PLANNING &

EXECUTION

CHEMISTRY MARKET ACCESS SALES CHANNELS

STR

AT

EC

PA

RT

NER

Complex project management

Cost and budget in line

Fixed transfer price

Transfer of responsibility

Lower headcount requirement

Highly specialized team

Constant innovation through ongoing

development projects

Existing technologies and IP-rights

Long track record of system approvals

Cover complete value chain

SPEED INNOVATION LOWER

COST OF

OWNERSHIP

EFFICIENCY




14

GLOBAL TOP 20 – IVD COMPANIES

Source: IVD News / figures adjusted by acquisitions in 2012 / non-public companies estimated / non-reported sector revenues estimated

Customer STRATEC Data Management

Customer STRATEC Instrumentation

Not a STRATEC customer

Revenues 2014 (USD billion)

1. Roche Diagnostics 8.9

2. Danaher 5.0

3. SIEMENS 4.8

4. Abbott Diagnostics 4.7

5. Thermo Fisher 3.3

6. Alere 2.3

7. Ortho Clinical Diagnostics 1.9

8. Sysmex 1.9

9. bioMerieux 1.7

10. BIO-RAD 1.4

11. BECTON DICKINSON 1.3

12. Hologic / Gen-Probe 1.2

13. CH Werfen 1.0

14. Grifols (incl. Novartis diagnostics business unit) 0.8

15. QIAGEN 0.7

16. Diagnostica Stago 0.6

17. DiaSorin 0.6

18. Agilent / Dako 0.6

19. EUROIMMUN ~0.4

20. Immucor ~0,4



www.stratec.com 15 Berenberg European Conference –


FINANCIALS

Overview & Business Model Financials Future Growth The IVD Market

www.stratec.com 16

Key figures FY 2015

FINANCIALS AT A GLANCE



(€ million) FY 2015 FY 2014 Change

Sales 146.9 144.9 + 1.4%

EBIT 26.9 24.1 + 11.7%

EBIT margin (%) 18.3 16.6 + 170 bps

Consolidated net income 22.1 19.8 + 11.7%

Earnings per share (€) 1.87 1.68 + 11.3%


0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

2011 2012 2013 2014 2015

17

Service parts

Analyzer systems

Development, service and consulting Installed base (based on a 5 year average life cycle)

Number of analyzer systems delivered

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2011 2012 2013 2014 2015

INSTALLED BASE & PRODUCT GROUPS

As of December 31

Delivered systems & installed base Relative share by product group

As of December 31




18

FINANCIALS AT A GLANCE

(€ million) March 31, 2016 March 31, 2015 Change

Sales 31.2 34.5 - 9.6%

EBIT 4.5 5.8 - 22.4%

EBIT margin (%) 14.5 16.9 - 240 bps

Consolidated net income 3.4 4.7 - 27.7%

Earnings per share (€) 0.29 0.40 - 28.1%

Key figures after the first three months


Tarrytown, May 24, 2016 www.stratec.com


19

3-Months Sales compared to Annual Sales

SALES

€ m

illio

n

28.8 29.2 34.4

122.4

0

20

40

60

80

100

120

140

160

2012 2013 2014 2015 2016

3-Months Sales as of 03/31

Annual Sales as of 12/31

• Lower than expected

instrument sales

• Stable sales from other

activties

• Weakest quarter of the

current fiscal year

128.0

144.9 146.9

31.2 34.5




20

As of March 31

EBIT & EBIT MARGIN

• EBIT margin at 14.5%

• Development expenditures on high

level

• Service parts business on stable level

• Margin to improve in 2016

Q1 EBIT EBIT margin

EBIT in € million EBIT margin in %

4.35 4.41

5.3

5.8

4.5

12%

13%

14%

15%

16%

17%

18%

19%

20%

0

2

4

6

8

2012 2013 2014 2015 2016




21

EARNINGS AFTER THREE MONTHS

Key earnings figures as of March 31

Earnings per share as of March 31

0.29 0.31 0.37 0.40

0.29

0,00

0,10

0,20

0,30

0,40

0,50

2012 2013 2014 2015 2016

€

4.4 4.4

5.3 5.8

4.5

3.4 3.6

4.4 4.7

3.4

0

1

2

3

4

5

6

7

2012 2013 2014 2015 2015

€ m

illio

n

EBIT Consolidated net income EPS

• Q1 tax rate at 22.4% (previous year: 19.8%)

• Dividend proposal per share at € 0.75 (previous year : € 0.70)

* 2012 and 2014 adjusted by one-off non operational items



www.stratec.com 22

FUTURE GROWTH




23

ACQUISITION OF DIATRON



• Leading global OEM developer and manufacturer of hematology and clinical chemistry analyzers and related consumables for use in both human and veterinary medicine

• Specialized in the fragmented markets of decentralized diagnostics

• Headquartered in Budapest, Hungary • Subsidiary in Florida, USA

• 194 employees

• Revenues of ~€ 34 million in 2015

• EBIT-Margin on STRATEC level


www.stratec.com 24

DIATRON – EXPANDING THE VALUE CHAIN



Hematology

• Global Diagnostic

OEM-partners

• Installed base in more than

70 countries

• Decentralized labs

• Emerging markets

Laboratory Blood bank

Immunoassay

• LIAISON® XL

(DiaSorin)

• ADVIA Centaur® CP

(Siemens)

• Evolis (Bio-Rad)

• Liaison XS* (DiaSorin)

• …

Immunohematology

• GalileoNEO (Immucor)

• TANGO™ Infinity (Bio-Rad)

• MosaiQ* (Quotient)

• …

Molecular

• Panther™ (Hologic)

• Fusion* (Hologic)

• Simoa (Quanterix)

• Invigenius (platform)

• Pure (platform)

• …

Serology

• MosaiQ* (Quotient)

• High throughput multiplexing instrument*

• …

*under development


25

FOCUS IN 2016



Business Development

Revenue Growth Profitability and Cash Flow

• Product launches and

ramp-ups

• Development projects

• Revenues from new

business

• Successful Integration of

Diatron

• M&A Opportunities

• Further extend

development and

manufacturing capacities

• Sign new projects

• Diatron: Integration cost,

investments and synergy

effects

• Efficiency improvements

• Continue to build up

consumable business

• Reduction of working

capital


26

FINANCIAL GUIDANCE

• Sales guidance: 6% CAGR (2014 to 2017)

• Sales guidance for 2016: €150 million to €154 million

• Profitability in 2016 on a stable level

• Guidance to be updated with H1 results in July 2016



THANK YOU

FOR YOUR ATTENTION!

STRATEC Biomedical AG Gewerbestr. 37

75217 Birkenfeld

Germany

Tel: +49 7082 7916-0

Fax: +49 7082 7916-999

www.stratec.com

Marcus Wolfinger

CEO

[email protected]

TICKER Symbol: SBS.DE

Bloomberg: SBS:GR

Reuters: SBSG.DE

ISIN: DE000STRA555

WKN: STRA55

CONTACT

27 www.stratec.com Berenberg European Conference –


APPENDIX

28

STRATEC GROUP

A1 Berenberg European Conference –


Diatron MI PLC Budapest / Hungary

KEY FIGURES AT A GLANCE

IFRS (€ million) 2011 2012 2013 2014 2015

Sales 116.6 122.7 128.0 144.9 146.9

EBIT 21.8 15.6 19.5 24.1 26.9

EBIT margin (%) 18.7 12.7 15.2 16.6 18.3

Consolidated net income 15.3 12.5 15.5 19.8 22.1

Earnings per share (€) 1.32 1.06 1.32 1.68 1.87

Dividend per share (€) 0.55 0.56 0.60 0.70 0.75 1

No. of employees 503 533 546 544 583

Total assets 111.0 108.5 117.8 137.8 158.9

Equity ratio (%) 75.0 80.7 82.5 81.3 82.0

Free cash flow 8.3 0.4 13.5 32.9 17.3

AS OF DECEMBER 31



1 Subject to approval by the Annual General Meeting on June 9, 2016

SHAREHOLDER STRUCTURE & SHARE

SHARE IPO Aug. 1998

Capital increase < 10%, Mar. 2002

< 10%, Sep. 2005

Number of shares 11,852,970

Share price (05/12/2016) € 50.55

Market capitalization € 600 million

Fixed and family ownership

(incl. investment companies)

Treasury shares

Retail investors incl. not

identified institutional investors

Institutional investors

SHAREHOLDER STRUCTURE (as of: 12/31/2015)

~ 41.7%

~ 18.2%

~ 40.0%

~ 0.1%



INSTITUTIONAL SHAREHOLDERS

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 %

TOP 15 AS OF DECEMBER 2015



ANALYST COVERAGE

Berenberg Bank

Dr. Scott Bardo

Phone: +44 20 32077869

Deutsche Bank

Gunnar Romer

Phone : +49 69 91031917

HSBC Trinkaus & Burkhardt

Jan Keppeler

Phone : +49 211 9102446

Landesbank Baden-Württemberg

Volker Stoll

Phone : +49 711 12770568

M.M.Warburg & CO

Michael Heider

Phone: +49 40 309537 280

DZ Bank

Sven Kürten

Phone : +49 69 744792072

Kepler Cheuvreux

Oliver Reinberg

Phone : +49 69 75696140

METZLER Capital Markets

Alexander Neuberger

Phone: +49 69 2104 4366

Oddo Seydler Bank

Igor Kim

Phone: +49 69 977845615



FINANCIAL CALENDAR 2016

05/24/2016 Berenberg European Conference, Tarrytown, USA

06/07/2016 Jefferies 2016 Healthcare Conference, New York, USA

06/15/2016 8. Dr. Kalliwoda Capital Markets Conference, Warsaw, PL

07/21/2016 Publication of half-yearly financial report

08/30/2016 Commerzbank Sector Conference, Frankfurt, GER

09/07-08/2016 Annual Goldman Sachs European Medtech and Healthcare Services Conference, London, UK

09/19-21/2016 Berenberg German Corporate Conference, Munich, GER

10/27/2016 Publication of quarterly statement Q3|2016

11/17/2016 HSBC Healthcare Day, Frankfurt, GER

11/21-23/2016 Deutsche Börse German Equity Forum, Frankfurt, GER

12/07/2016 Berenberg European Conference, Pennyhill, UK

Subject to confirmation and amendments



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