ir company presentationir.stratec.com/stratec/pdf/pdf_id/419693.pdf · overview financials&...

San Francisco, January 2016

IR Company Presentation

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 IR Company Presentation -




AGENDA

OVERVIEW AND BUSINESS MODEL

THE IVD MARKET

FINANCIALS

FUTURE GROWTH



OVERVIEW AND

BUSINESS MODEL

Overview & Business Model Financials The IVD Market Future Growth

www.stratec.com 5

STRATEC AT A GLANCE

IR Company Presentation -


Market leader in automation solutions for the

diagnostics industry

Listed on TecDAX (Deutsche Boerse)

550 employees worldwide

More than 12,000 systems installed globally

Revenue € 144.9 million in 2014

Revenue and earnings growth in 2015


• Market leader in automation solutions in the diagnostic

industry

• Broad installed base of more than 12,000 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%

• Dividend payments raised over 11 consecutive years

INVESTMENT SNAPSHOT



“LIAISON XL” for DiaSorin


www.stratec.com 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




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




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



THE IVD MARKET

80%

5% 15%

Reagents / Chemistry

Instrument Services

Instrumentation

www.stratec.com 11

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

High Throughput

Low Throughput

Total instrumentation

~ 7.5 billion USD

CAGR 2013 – 2018:

IVD Market: 4%

Molecular Diagnostic: 8%

Immunodiagnostic: 4%

Hematology: 2 %

Circulating tumor cells: 25 %

Source: The worldwide market for In Vitro Diagnostic Tests, 9th Edition. Excludes glucose test monitors.

Market by product type Market by sector

Stratec core

technology areas

Number of systems

Molecular

Diagnostic 10%

Hematology

11%

Point of

Care 14%

Other 7%

Microbiology

8%

Clinical

Chemistry 17%

Immunodiagnostic

33%




OUTSOUCED VS IN HOUSE INSTRUMENTATION MARKET

Total

instrumentation

~ 7.5 billion

USD


San Francisco, January 2016 www.stratec.com 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


www.stratec.com 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


www.stratec.com 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



FINANCIALS

Overview & Business Model Financials Future Growth The IVD Market

www.stratec.com 16

FINANCIALS AT A GLANCE



Key figures after the first nine months

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

Sales 107.2 105.3 + 1.8%

EBIT 19.2 17.7* + 8.8%

EBIT margin (%) 17.9 16.8* + 110 bps

Consolidated net income 15.9 14.6* + 8.8%

Earnings per share (€) 1.35 1.24* + 8.9%

* 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 nine months of 2014 amounted to € 17.0 million; the corresponding EBIT margin amounted to 16.2%, consolidated net income to € 14.2 million and earnings per share to € 1.20.




EBIT & EBIT MARGIN 9-Months EBIT compared to Annual EBIT

Improving EBIT margin at 17.9%:

• Efficiency improvements

• Beneficial product mix

FY EBIT FY EBIT margin

(2015: 9M)

EBIT in € million EBIT margin in %

* 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 nine months of

2014 EBIT amounts to € 17.0 million; the corresponding of the liability due may differ at the time of payment.

15.1 13.4 13.4 17.7 19.2

10%11%12%13%14%15%16%17%18%19%20%21%22%

02468

101214161820222426

2011 2012 2013 2014 2015

9M EBIT

21.8

17.6 19.5

24.1

9-Months Sales compared to Annual Sales

€ m

illio

n

80.2 87.6 90.8 105.3 107.2

116.6 122.4

0

20

40

60

80

100

120

140

160

2011 2012 2013 2014 2015

9-Months Sales as of 09/30 Annual Sales as of 12/31

Sales grew 1.8% to € 107.2 million

• Regional weaknesses in system sales observed

• Continuously high development activities

• Positive developments in service parts business

128.0

144.9

SALES

• Higher share of service parts


www.stratec.com 18

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




9M EPS

www.stratec.com 19

EARNINGS AFTER NINE MONTHS



9-Months EPS compared to Annual EPS

EUR

FY EPS

• 9M tax rate at 18.1% (9M/2014: 16.4%)

• Dividend continuity expected, subject

to financing growth

• EPS after nine months at € 1.35

• Number of shares 11,846,595

* 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 nine months of 2014 EBIT amounts to € 17.0 million; the

corresponding EBIT margin amounts to 16.2%. The effective amount of the liability due may differ at the time of payment.

0.85 0.93 0.87

1.20 1.35

0.55 0.56 0.60 0.70

0,00

0,20

0,40

0,60

0,80

1,00

1,20

1,40

1,60

1,80

1.32

1.06

1.32

1.71

2011 2012 2013 2014 2015

Dividend paid


www.stratec.com 20

CASH FLOW

IFRS (€ million) 9M/2015 9M/2014

Cash flow 17.8 19.5

Cash flow – operating activities 21.5 25.7

Cash flow – investing activities -5.3 -5.7

Cash flow – financing activities -8.7 -7.9

Free cash flow 16.1 20.1

Cash and cash equivalents

at end of period 54.7 34.6

As of September 30





FUTURE GROWTH


www.stratec.com 22

FOCUS IN 2016



New product launches and ramp-ups

Established products in new markets

Partner deals open up new

opportunities e.g. DiaSorin

Hitting development milestones

Finalize negotiations for several

development and supply agreements

REVENUE

GROWTH

Extension of development and

manufacturing capacities

Strategic options for Business Units

Inorganic growth

Establish partnerships through

operational and equity activities

BUSINESS

DEVELOPMENT

Improve structure for

manufacturing costs

Further reduction of working

capital requirements

Manage increasing impact from

foreign exchange rates

Expand disposable business

PROFITABILITY AND

CASH FLOW


0

50

100

150

200

250

2013 2014 2015 2016 2017

www.stratec.com 23

SALES GUIDANCE

€ m

illio

n

2013 Sales:

€ 128 million

CAGR 4-year sales 2014 - 2017:

8% - 12% based on 2013



Sales Guidance until 2017:

• 2014 to 2017: 8% - 12% CAGR based on 2013

2015

• Slight sales growth / similar as reported

in 2015

• EBIT-margin: > nine month rate (17.9%)

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


San Francisco, January 2016 www.stratec.com 24

APPENDIX

25

STRATEC GROUP

www.stratec.com A1 IR Company Presentation -


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 (01/07/2016) € 56.00

Market capitalization € 663 million

Fixed and family ownership

(incl. investment companies)

Treasury shares

Retail investors incl. not

identified institutional investors

Institutional investors

SHAREHOLDER STRUCTURE (as of: 09/30/2015)

~ 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 SEPTEMBER 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

01/11-12/2016 The Trout Group's Annual 1x1 Management Access Event, San Francisco, USA

01/19/2016 14th German Corporate Conference, Frankfurt, GER

03/01-02/2016 Morgan Stanley European MedTech & Services Conference, London, UK

03/31/2016 Oddo Biotech / Medtech Day Forum, Paris, FRA

04/14/2016 Publication of consolidated/annual financial statements for 2015

04/26/2016 Publication of interim report as of 03/31/2016

05/04-05/2016 41s Annual Healthcare Conference, Boston, USA

05/19-21/2016 UBS Pan European small & midcap Conference, London, UK

05/24-26/2016 Berenberg European Conference, Tarrytown, USA


08/31/2016 Commerzbank Sector Conference, Frankfurt, GER

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


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

Subject to confirmation and amendments



ir company presentationir.stratec.com/stratec/pdf/pdf_id/419693.pdf · overview financials&...

Documents