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NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa...

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NASDAQ: TECH 34 th Annual J.P. Morgan Healthcare Conference 13 January 2016
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Page 1: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

NASDAQ: TECH

34th Annual J.P. Morgan Healthcare Conference 13 January 2016

Page 2: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Disclaimer Cautionary Statements This presentation contains “forward-looking statements” within the meaning of the federal securities laws. Except for historical information contained herein, the statements in this presentation are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements made herein relate to, among other things, future sales, earnings, return on equity, cost savings, process improvements, free cash flow, share repurchases, capital expenditures, acquisitions, benefits of investments and partnerships, business strategies and other matters. Such statements can be identified by words such as: “expected,” “expects,” “expect,” “forecast,” “would,” “estimate,” “will,” or similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Actual results could differ materially from those stated or implied in the forward-looking statements. For a list of factors, risks and uncertainties which could make our actual results differ from expected results, please see our latest Annual Report on Form 10-K. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, as a result of new information, future developments or otherwise. This presentation also contains non-GAAP financial information. Management uses this information in its internal analysis of results and believes this information may be informative to investors in gauging the quality of our financial performance, identifying trends in our results and providing meaningful period-to-period comparisons. For definitions of applicable non-GAAP financial measures and reconciliations of non-GAAP financial information to GAAP financial information, see the Reconciliations of GAAP to Non-GAAP Financial Measures included in the Company’s financial reports on Forms 10-Q and 10-K and related press releases.

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Page 3: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

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EPIC TOOLS FOR EPIC SCIENCE

Empowerment Passion Innovation Collaboration

Bio-Techne Mission

Page 4: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

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Fiscal Year Ends: June 30 FY 2015 Revenues: $452 MM FY 2015 Adj. Gross Margin: 71.6% FY 2015 Adj. Earnings: $127 MM FY 2015 Adjusted EPS: $3.40 Current Market Cap: ~$3.5B

Minneapolis, MN HQ 1400+ Employees Offices in North America, Europe, Japan and China

Glo

bal F

ootp

rint

Extensive product portfolio of Life Science reagents

Extensive applications expertise

Cytokines/GF

Immunoassays

Small Molecules

Protein Analysis Instruments

Automated Immunoassay Platform

Clinical Chemistry, Controls and Calibrators

Prod

ucts

Cliniqa

ProteinSimple

Novus Biologicals

CyVek

PrimeGene

Bionostics Re

cent

Acq

uisi

tions

Current Business Overview

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-5% 0% 5% 10% 15% 20% 25%

Consolidated

North America

Europe

China

Pacific Rim

Clin Controls

FY13

FY14

FY15

1Organic sales figures exclude the impact of acquisitions and foreign currency exchange rates 2Geographic growth only represents Biotechnology segment

Organic Sales Growth1,2

Page 6: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

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Customers Served

Pharma Biotech Academia CROs Hospitals Foundations Government

Large Addressable Market Opportunities

>$10 Billion Addressable

Market 4-10% CAGR

Neuroscience $0.9B

Multiplex Testing

Platforms $0.7B

IVD Assays and Reagents

$3.6B

Bioprocessing and Media

$1.6B Oncology

$0.8B

Stem Cells $0.9B

Immunology $1.5B

Research Antibodies

$1.0B

Page 7: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Current Reportable Segments

~68% of Sales High 70s Gross Margin%

Low 50s Op. Margin%

~15% of Sales High 60s Gross Margin%

High single-digit Op. Margin%

~17% of Sales Mid 40s Gross Margin% Low 30s Op. Margin%

Note: All margin percentages have been adjusted to exclude impact of acquisition costs

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Legacy R&D Systems PrimeGene Novus

Biotechnology

Legacy R&D Systems Cliniqa Bionostics

Clinical Controls

Protein Platforms ProteinSimple Simple Plex

Page 8: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Protein Platforms Clinical Controls Biotechnology

Geographic Sites

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Page 9: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Divisions

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SIMPLE PLEX

Protein Platforms Clinical Controls Biotechnology

Page 10: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Biotech Division Products

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Proteins

Small Molecules

Stem Cell Products

StemXVivo®

ELISAs

Antibodies

Proteome

Profiler Arrays

Luminex

Biotechnology

HIGHEST-QUALITY PRODUCT PORTFOLIO

TRUSTED GLOBAL BRANDS

Page 11: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Clinical Controls Division Products and Services

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Urine Controls

Cell-Based Blood

Controls

Antigens and Antibodies

Assay Development

Chemistry and Immunology

Controls

HIGHEST-QUALITY REAGENTS SUPPLIER FOR IVD KIT MANUFACTURERS

TRUSTED CONTROLS AND CALIBRATORS MANUFACTURER FOR THE GLOBAL CLINICAL MARKET

Clinical Controls

Page 12: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Protein Platforms Division Products

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Simple Western™ Simple Plex Biologics

SIMPLE REVOLUTIONARY INSTRUMENTATION TO FACILITATE PROTEIN ANALYSIS

Protein Platforms

Page 13: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Strategic Plan

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FY2019 Revenue of $1 Billion

Ops. Margins 30-35%

Multiple Divisions

(4 -6)

China

Revenue >$100MM

Staff in Excess of

2,000

Page 14: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Implementation of Changes

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Long-Term Strategic

Goals

Business Infrastructure Improvements

Product Portfolio

Expansion

Key Staffing

Additions

Market Refocus and Geographic

Expansion

Page 15: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

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• IT • Ordering Process • Website

Business Systems

• 3 Divisions • 3 Regions

Matrix / Subsidiary

Model

• R&D • Manufacturing Ops

Operational Efficiencies

Business Infrastructure Improvements

Page 16: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

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Product Portfolio Expansion

• China-for-China • Low-cost manufacturing capabilities • >225K antibodies • Strengthen e-commerce and web

Biotech

• Clinical chemistry and immunology controls • Large kit-packaging capabilities • Diagnostics assay market capabilities

Clinical Controls

• Instrumentation market entry with patent-protected technology

• Automated immunoassay platform • Western Blot and Multiplex platforms

leverages content

Protein Platforms

Page 17: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

Key Staffing Additions

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HR

CTO

Sales and Marketing

Divisional Leadership

Chief Financial Officer and Finance Team

APAC Leader

Page 18: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

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Product Prioritization and Geographic Expansion

• Expanded sales force • Locally-made products • New GMP factory

China

• ProteinSimple ab validation program • Cross-selling CCD products • Simple Plex custom assay development

Leveraging Across

Organization

• Ensuring right products created • Product ideas from leaders in the field • Strategic advisory board

Global KOL and VOC

Programs

Page 19: NASDAQ: TECH...2016/01/13  · Clinical Chemistry, Controls and Calibrators Products Cliniqa ProteinSimple Novus Biologicals CyVek PrimeGene Bionostics Recent Acquisitions Current

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Bio-Techne in Review


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