berenberg and goldman sachs - stratecir.stratec.com/stratec/pdf/pdf_id/421989.pdf · excludes...

Berenberg and Goldman Sachs

Fourth German Corporate Conference

Munich, September 23, 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.

www.stratec.com 2 Berenberg and Goldman Sachs Fourth German

Corporate Conference - Munich, September 23, 2015

AGENDA

1. Overview and Business Model

2. The IVD Market

3. Financials

4. Aspects of Future Growth



Overview & Business Model Financials The IVD Market Future Growth

• 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: 9%

• Guidance revenue growth 2014 to 2017: 8% - 12%

• Profitable with revenue of € 144.9 million in 2014

• Dividend payments raised over 11 consecutive years

INVESTMENT SNAPSHOT

www.stratec.com 4

“LIAISON XL” for DiaSorin

Berenberg and Goldman Sachs Fourth German



www.stratec.com 5

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

Unique Market Position




www.stratec.com 6

• STRATEC provides instrumentation, software and automation solutions

– OEM development and manufacturing

– More than 2,700 fully automated analyzer systems manufactured in 2014

– 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




www.stratec.com 7

• 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 8


2. The IVD Market

3. Financials





www.stratec.com 9

IVD MARKET SEGMENTS / IVD Market: ~ 50 billion USD



80%

5%

15%

Reagents / Chemistry Instrument Services Instrumentation

High Throughput (number of systems)

Low Throughput (number of systems)

Total instrumentation

~ 7.5 billion USD


www.stratec.com 10

IVD INSTRUMENTATION MARKET

Source: Various sources. Excludes glucose test monitors.

US

D b

illio

n

Outsourced vs In House Instrumentation Market



30% 32% 34% 36% 38%

70% 68% 66%

64% 62%

0

1

2

3

4

5

6

7

8

9

10

2012 2013 2014 2015E 2016E

IVD In House Market IVD OEM Market

2012 - 2016

CAGR 3%

2012 - 2016

CAGR 13%


www.stratec.com 11

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 (now Carlyle in 2014) 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 12

DEFINING OUTSOURCING

Inhouse

Contract

Manufacturing

Transferring

Responsibilities

Development

Department

Development

Department Supply Chain

In-house or

3rd Party

Development

Department

Outs

ourc

ing

Time / Costs

Design Phase Integration-

/ Transfer Phase

Manufacturing

Phase

In-house

Development

Department

CMs & EMS

Outsourcing

Partner Outsourcing Partner



Overview & Business Model Financials Future Growth The IVD Market

www.stratec.com 13


2. The IVD Market

3. Financials





www.stratec.com 14

FINANCIALS AT A GLANCE



(€ million) June 30, 2015 June 30, 2014 Change

Sales 70.0 69.1 + 1.4%

EBIT 12.0 11.2* + 6.7%

EBIT margin (%) 17.1 16.3* + 80 bps

Consolidated net income 9.8 9.6* + 1.8%

Earnings per share (€) 0.83 0.82* + 1.2%

* 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term of the

employment contract for a retired member of the board of management. Unadjusted EBIT for the first half of 2014 amounted to € 10.3 million; the corresponding EBIT margin amounted to 14.9%, consolidated net income to € 8.9 million and earnings per share to € 0.76.

Key figures after the first six months


www.stratec.com 15

SALES

34.5



6-Months Sales compared to Annual Sales

€ m

illio

n

69.1

48.5 58.2 60.1

116.6 122.4

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015

6-Months Sales as of 06/30

Annual Sales as of 12/31

Sales grew 1.4% to € 70.0 million

• Solid system sales

• Continuously high development

activities

• Positive developments in

service parts business

128.0

144.9

70.0


www.stratec.com 16

INSTALLED BASE & PRODUCT GROUPS

Replacement parts / disposables Analyzer systems

Development, service and consulting

As of December 31

Installed base (based on a 5 year average life cycle)

Number of analyzer systems delivered

Delivered systems & installed base Relative share by product group

As of December 31

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

2010 2011 2012 2013 20140%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2010 2011 2012 2013 2014




www.stratec.com 17

EBIT & EBIT MARGIN



As of June 30

Improving EBIT margin at 17.1%:

- Efficiency improvements

- Beneficial product mix

6M EBIT 6M EBIT margin

EBIT in € million EBIT margin in %

9.1 9.4

8.4

11.2

12.0

6%

8%

10%

12%

14%

16%

18%

20%

0

2

4

6

8

10

12

14

2011 2012 2013 2014 2015

* 2014 figure adjusted to exclude a one-off item resulting from the recognition of a liability for the remaining years covered by the residual term of the

employment contract for a retired member of the Board of Management. Unadjusted in the first half of 2014 EBIT amounts to € 10.3 million; the

corresponding EBIT margin amounts to 14.9%. The effective amount of the liability due may differ at the time of payment.


www.stratec.com 18

Key earnings figures as of June 30

EARNINGS AFTER SIX MONTHS

9.1 9.4

8.3

11.2*

12.0

7.0 7.4

6.5

9.6* 9.8

0123456789

10111213

2011 2012 2013 2014 2015

€ m

illio

n

EBIT Consolidated net income

* 2014 figure adjusted to exclude a one-off negative item resulting from the 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. Unadjusted EBIT for the first half of 2014 amounts to € 10.3 million; consolidated net income to € 8.9

million and earnings per share to € 0.76. The actual amount of the aforementioned expense item may differ at the time of payment from the amounts presented here.



Earnings per share as of June 30

60 63

56

82* 83

0

10

20

30

40

50

60

70

80

90

2011 2012 2013 2014 2015

€ c

en

t

• 6M tax rate at 19.2% (6M/2014: 12.7%)

• Dividend pay out per share at € 0.70

(previous year: € 0.60)

• Number of shares 11,889,797

EPS


www.stratec.com 19

CASH FLOW

IFRS (€ million) 6M/2015 6M/2014

Cash flow 9.7 10.3

Cash flow – operating activities 12.3 17.1

Cash flow – investing activities -2.8 -3.9

Cash flow – financing activities -8.7 -7.2

Free cash flow 9.5 13.2

Cash and cash equivalents

at end of period 49.1 27.1

As of June 30




www.stratec.com 20


2. The IVD Market

3. Financials





• Revenue Growth: – New product launches and ramp-ups

– Established products in new markets

– Hitting development milestones

– Product lifecycle management

• Business Development: – Finalize negotiations for several development and supply agreements

– System platform developments

– Extension of development and manufacturing capacities

– Strategic options for Business Units

– Inorganic growth

• Profitability and Cash flow: – Improve structure for manufacturing costs

– Further reduction of working capital requirements

– Manage increasing impact from foreign exchange rates

Focus in 2015 and beyond




www.stratec.com 22

Sales Guidance

STRATEC – GUIDANCE

Sales Guidance until 2017:

• 2014 to 2017: 8% - 12% CAGR based

on 2013

• 2015: Slight improvement compared

to 2014

EBIT Margin Guidance:

• 2015: Slight improvement compared

to 2014

€ m

illio

n

2013 Sales:

€ 128 million

CAGR 4-year sales 2014 - 2017:

8% - 12% based on 2013

0

50

100

150

200

250

2013 2014 2015 2016 2017



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

APPENDIX

STRATEC GROUP

www.stratec.com A1 Berenberg and Goldman Sachs Fourth German


KEY FIGURES AT A GLANCE

IFRS (€ million) 2010 2011 2012 2013 2014

Sales 102.0 116.6 122.7 128.0 144.9

EBIT 17.6 21.8 15.6 19.5 24.1

EBIT margin (%) 17.3 18.7 12.7 15.2 16.6

Consolidated net income 13.0 15.3 12.5 15.5 19.8

Earnings per share (€) 1.14 1.32 1.06 1.32 1.71

Dividend per share (€) 0.50 0.55 0.56 0.60 0.70

No. of employees 440 503 533 546 544

Total assets 98.8 111.0 108.5 117.8 137.8

Equity ratio (%) 72.7 75.0 80.7 82.5 81.3

Free cash flow -6.9 8.3 0.4 13.5 32.9

AS OF DECEMBER 31



SHAREHOLDER STRUCTURE & SHARE

SHARE IPO Aug. 1998

Capital increase < 10%, Mar. 2002

< 10%, Sep. 2005

Number of shares 11,846,595

Share price (09/01/2015) € 47.36

Market capitalization € 561 million

Fixed and family ownership

(incl. investment companies)

Treasury shares

Retail investors incl. not

identified institutional investors

Institutional investors

SHAREHOLDER STRUCTURE (as of: 06/30/2015)

~ 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 JUNE 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

Bryan, Garnier & Co

Mathieu Chabert

Phone: +33 170 365745

DZ Bank

Sven Kürten

Phone : +49 69 744792072

Kepler Cheuvreux

Oliver Reinberg

Phone : +49 69 75696140

Oddo Seydler Bank

Igor Kim

Phone: +49 69 977845615



FINANCIAL CALENDAR 2015 / 2016

09/21-23/2015 German Corporate Conference, Berenberg and Goldman Sachs, Munich, GER

10/28/2015 Publication of Interim Report as of 09/30/2015

11/12/2015 HSBC Healthcare Day 2015, Frankfurt, GER

11/19/2015 Jefferies Autumn 2015 Global Healthcare Conference, London, UK

11/23-25/2015 German Equity Forum, Deutsche Börse Group, Frankfurt, GER

01/18-21/2016 15th German Corporate Conference, Frankfurt, GER

Subject to confirmation and amendments



berenberg and goldman sachs - stratecir.stratec.com/stratec/pdf/pdf_id/421989.pdf · excludes...

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