perkinelmer 2014 jp morgan healthcare conference
TRANSCRIPT
© 2014 PerkinElmer
PerkinElmer 2014 JP Morgan Healthcare ConferenceRobert FrielChairman and CEOJanuary 15, 2014
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Factors affecting future performance & non-GAAP financial measures
This presentation contains "forward-looking" statements which are statements relating to future events. These statements include those relating to estimates and projections of future earnings per share, cash flow and revenue growth and other financial results, developments relating to our customers and end-markets, and plans concerning business development opportunities. Words such as "believes," "intends," "anticipates," "plans," "expects," "projects," "forecasts," "will" and similar expressions, and references to guidance, are intended to identify forward-looking statements. Such statements are based on management's current assumptions and expectations and no assurances can be given that our assumptions or expectations will prove to be correct. A number of important risk factors could cause actual results to differ materially from the results described, implied or projected in any forward-looking statements. These uncertainties may cause our actual future results to be materially different than those expressed in our forward looking statements. A detailed description of these risk factors can be found under the caption“Risk Factors” in our most recent annual report on Form 10-K and in our other filings with the Securities and Exchange Commission. We disclaim any intention or obligation to update any forward-looking statements as a result of developments occurring after the date of this presentation.
In addition to financial measures prepared in accordance with generally accepted accounting principles (GAAP), this presentationalso contains non-GAAP financial measures. The reasons that we use these measures, a reconciliation of these measures to the most directly comparable GAAP measures, and other information relating to these measures are available on the “Financial Information” section of our website at www.perkinelmer.com.
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PerkinElmer…
Leader in Diagnostic, Research & Environmental MarketsLeader in Diagnostic, Research & Environmental Markets
Approximately 7,600 Employees Worldwide, 150 CountriesApproximately 7,600 Employees Worldwide, 150 Countries
$2.2 Billion in Revenue – $400M EBITDA$2.2 Billion in Revenue – $400M EBITDA
North America
45%
Western Europe
23%
Japan4%
Emerging Markets
28%
Service & Informatics
32%Instruments
& Components45%
Reagents & Consumables
23%
Dedicated to improving health & safety of people & the environmentDedicated to improving health & safety of people & the environment
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PerkinElmer has unique capabilities…
…addressing global healthcare needs
Application driven,
differentiated solutions
Strong Operational Capabilities
Attractive segments of
improving health
Diagnostics
Environmental
Research
EmergingMarkets
55
What we do…
Leading Detection & Imaging Capabilities
Comprehensive Service and Application Support
Informatics
66
What we do…
Leading Detection & Imaging Capabilities
Comprehensive Service and Application Support
Informatics
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Analysis of Italian wines
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Analysis of Italian wines
99
What we do…
Leading Detection & Imaging Capabilities Comprehensive Service
and Application Support
Informatics
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NGS Automated Liquid Handling Workstation
► Automates key procedures in sample prep workflow for bench top next generation DNA sequencing platform
►Better quality NGS libraries and lower costs
NGS Express™ Workstation
JANUS® Application Software
1111
What we do…
Leading Detection & Imaging Capabilities
Comprehensive Service and Application Support
Informatics
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Asset Genius™
►Business intelligence tool to help make informed, data driven decisions for increased productivity and improved efficiencies
►Provides real-time insights into asset deployment and utilization throughout organizations
►Key performance metrics help to maximize asset ROI by extending instrument longevity
Asset Genius™
Data Visualization
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What we do…
Leading Detection & Imaging Capabilities
Comprehensive Service and Application Support
Informatics
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Newborn screening capabilities-SCID testing…
Severe Combined Immunodeficiency (SCID) Lab-in-Lab consisting of a full service operation imbedded in the client’s laboratory, providing the PerkinElmer Genetics SCID TREC Assay which is accelerating testing availability
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What we do…
Comprehensive Service and Application Support
Informatics
Leading Detection & Imaging Capabilities
Differentiated Customer Experience
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Where we focus…
Detection & ImagingInformatics
Service
HUMAN HEALTH ENVIRONMENTAL HEALTH
DiagnosticsFinding diseases sooner for
better outcomes
Life Science ResearchDiscovering
better drugs faster
EnvironmentalIdentifying contaminants for
a safer environment
25% 45%30%
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Providing faster, more accurate insights…
DiagnosticsFinding diseases sooner for better
outcomes
Addressable Market: $4BGrowth Drivers• Birth / Menu expansion• Emerging markets
Market Growth: 6-8%Newborn &
Prenatal Screening
Infectious Disease
Medical Imaging
Why We Win• Global leader in newborn screening & first
trimester prenatal risk assessment• CLIA specialty labs• Entrenched customer relationships• Strong brand• Broad global channel
PKI Capabilities• Bio-chemical & molecular detection• Clinically validated assays• Digital x-ray panels• Samples prep & liquid handling• Service
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Providing faster, more accurate insights…
DiagnosticsFinding diseases sooner for better
outcomes
Addressable Market: $4BGrowth Drivers• Birth / Menu expansion• Emerging markets
Market Growth: 6-8%Newborn &
Prenatal Screening
Infectious Disease
Medical Imaging
Why We Win• Global leader in newborn screening & first
trimester prenatal risk assessment• CLIA specialty labs• Entrenched customer relationships• Strong brand• Broad global channel
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Newborn screening capabilities
Enabling Screening and Diagnosis for Earlier Treatment
Dried Blood Spot Screening(Instruments & Reagents) Diagnosis
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Tests55 available tests
Newborn screening global market opportunity
* Assumes ~60% screened, Average 10 tests/child
135M births
North Americas
Births
4M births
$125M $750M* $1B$125MMarketOpportunity
4M births
Rest of World
127M births
Western Europe
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100% 95% 45%
Total
6 2
= 2 million
MarketOpportunity
Screened
32 4
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Significant global reach…
…to improve newborn screening
Countries, states or provinces employing PerkinElmer screening products and methods
~65% Global Market
Share
North Americas Rest of WorldWestern Europe
PerkinElmer Providing Screening in 91 Countries and All US States
70% 60%50%
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Chinese Blood Screening
Chinese IVD Market
Infectious disease business focused on twosignificant opportunities…
Government Funded –No Reimbursement Pressure
$850M
PKI CapabilitiesSFDA Approved AssaysHAVHBVHCV
HIVCT/NGTP/NG
ImmunoChemistry
MDx$2.1B
Chinese IVD Market
$2.1B
$8.0B
2011 2017
25% CAGR
Won 8 of 19 Government Tenders
PKI CapabilitiesSFDA Approved Assays (NAT)
HBVHCVHIV
Blood Screening License
NATELISA
Chinese Blood Screening
NATNAT$75M
$150M
2012 2017
50% CAGR
$75M
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Helping to develop new and better drug therapies…
Life Science ResearchDiscovering better drugs faster
Addressable Market: $5BGrowth Drivers• Productivity in the lab (service & informatics)• Innovation in imaging and sample prep
capabilities
Market Growth: 1% - 3%Drug Discovery
Pre-Clinical
Why We Win• Application knowledge• Strong IP estate• Leading market position• Integrated informatics offerings• Best-in-class multi-level service capabilities
PKI Capabilities• Cellular imaging & analysis tools• Micro-fluidics• High throughput screening• Sample prep & liquid handling• Screening & imaging reagents• Informatics & service
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Helping to develop new and better drug therapies…
Life Science ResearchDiscovering better drugs faster
Addressable Market: $5BGrowth Drivers• Productivity in the lab (service & informatics)• Innovation in imaging and sample prep
capabilities
Market Growth: 1% - 3%Drug Discovery
Pre-Clinical
Why We Win• Application knowledge• Strong IP estate• Leading market position• Integrated informatics offerings• Best-in-class multi-level service capabilities
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Applications
Focusing on applications in our core markets that have higher growth…
Biotherapeutics
►NGS sample prep for discovery and detection for genetic drivers of disease
► Tissue multiplexing ►Efficacy, toxicology &
pathway regulation testing
►High throughput protein analysis
►Automated liquid handling
►Quantification and characterization
►Sample prep ►Data analysis
NGS
Products
Oncology
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Acquire and Analyze
Columbus™
Configure and Connect
ELN
Visualize
Spotfire®
Model
ChemBioOffice
Informatics aggregates, analyzes and interprets…
…to handle large amounts of data
+ + +
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Spotfire leverageable across entire instrument portfolio…
…stream your scientific data into Spotfire
LabChip Systems
IVS FMT
In Vivo Imaging
VectraMolecular Pathology
Tissue ImaginginForm
Environmental Health InstrumentationFlow Cytometers
Plate ReadersVictor X
EnVision
EnSpire
Opera
Operetta
High Content Screening
Mobile Spotfire
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Helping detect, monitor, and manage our environment …
EnvironmentalIdentifying contaminants for a safer
environment
Addressable Market: $7BGrowth Drivers• Globalization/Emerging market growth• Regulatory changes
Market Growth: 4-6%Food
Water
Air
Why We Win• Broad detection capabilities• Leading sample prep/handling technologies • Global leader in inorganic solutions • Knowledge and expertise• Best-in-class multi-level service capabilities
Chemical
PKI Capabilities• Spectroscopy• Chromatography • Mass spectrometry • Sample injection• Consumables• LIMS & Informatics• Service
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Helping detect, monitor, and manage our environment …
EnvironmentalIdentifying contaminants for a safer
environment
Addressable Market: $7BGrowth Drivers• Globalization/Emerging market growth• Regulatory changes
Market Growth: 4-6%Food
Water
Air
Why We Win• Broad detection capabilities• Leading sample prep/handling technologies • Global leader in inorganic solutions • Knowledge and expertise• Best-in-class multi-level service capabilities
Chemical
3030
Applications
Focusing on applications in our core markets that have higher growth…Air
► Food Adulteration in dairy
►Chemical speciation►Pesticide residues►Contaminants in
packaging materials
►Ozone precursors►Soil vapor intrusion►Air Toxics
►Drinking water►Waste water►Emerging nano
residues
Food Water
Products
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Breakthrough technology…
…optimizes sample analysis
AxION® iQT GC/MS/MS
Penetrates New Market Opportunities
Uses Modular Approach
Very AttractivePrice Point
Applications
FoodForensics
IndustrialEnvironmental
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1965 2012 2030
Rise of the Middle Class
Top> $36,500/yr
Middle Class> $3,650 - $36,500/yr
Bottom< $3,650/yr
77%
23%
.2%
71%
28%
.3%
38%
61%
.4%
Developed(NA, Euro, Japan)
Emerging 80%
20%49%51%
72%28%
Increases demand for healthcare, safe food and clean environment
Total Population 3.3B 7.0B 8.0B
4.9B.7B 2.0B
3333
Rise of the Middle Class
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Strong growth in emerging markets
2013F2009
$344M
~$610M~80%Growth
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Note: financial metrics represented above or on an adjusted basis, reconciliation to GAAP available on our website at www.perkinelmer.com
A history of solid financial performance…
…strong growth top and bottom line
Revenue Earnings per Share
$1.4
$2.2
2007 2013F
$0.87
2007 2013F
$2.06
>50%>125%
CAGR +8% +15%
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Optimizing our cost structure
Alameda, CA
Mountain View, CA
Downers Grove, IL
Hanover, MD
Montreal, QC
Hopkinton, MA
Boston, MA
Improved operational footprint and R&D
efficiencies
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Optimizing our cost structure
Moved manufacturing into lower cost countries
Developed
Developing
Shelton, CT
Singapore
Shanghai
3838
Optimizing our cost structure
Moved manufacturing into lower cost countriesConsolidated back office
capabilities
Western Europe
Krakow, Poland
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Revenue growth…
$1.4B
$2.1B
$3.1B
2007 2012 2017E
Emerging markets
Attractive niche markets
Service/Informatics
New products
Bolt-on acquisitions
Growth DriversRevenue
8% CAGR
8% CAGR
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Continued opportunities to expand operating margins
12.1%
16.5%
>20%
2007 2012 2017E
Reduced manufacturing footprint
Volume leverage/mix
Shared service/back office
Channel efficiencies
Op Margin DriversOperating Margin
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Leading Technologies & Capabilities
Driving Growth& Innovation
Focused in Attractive End Markets
PerkinElmer…
Broadest detection and imaging capabilitiesExtensive application knowledgeDifferentiated service and informatics solutions
Higher growth segmentsStrong emerging markets presenceSignificant value addLeading market positions
Earlier and more accurate detectionEnable faster, more informed scientific decisions and personalized healthAccelerate technological adoption in developing economies
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Thank you
Dedicated to improving the health and safety of people and the environment
