QIAGEN AGM, June 24, 2009, Venlo Slide: 1 Sample & Assay Technologies
QIAGEN – Sample and Assay Technologies
Annual General Meeting, Fiscal Year 2008Venlo, June 24, 2009
Peer M. SchatzChief Executive Officer
QIAGEN AGM, June 24, 2009, Venlo Slide: 2 Sample & Assay Technologies
Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, as well as the nucleic acid-based molecular diagnostics, applied testing markets and geneticvaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including fluctuations from certain events including funding, budgets, and others), difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, the management of intellectual property, and the integration of acquisitions of technologies and businesses. In addition certain statements contained in this news release are based on company assumptions, including, but not limited, to revenue allocations based on business segments. For further information, refer to the discussion in reports that QIAGEN has filed with or furnished to the U.S. Securities and Exchange Commission (SEC).
Regulation G: The following slides contain certain summary information about QIAGEN N.V.’s sales, gross profit, operating income, net income, and earnings per share over a specific period and the comparable period, which information is presented on a “non-GAAP financial measures” basis rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN’s press releases for information on the company’s operating income, net income, and earnings per share for these periods presented on a GAAP basis. Such GAAP-basis information will also be contained in the company’s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission.
Forward Looking Statements
QIAGEN AGM, June 24, 2009, Venlo Slide: 3 Sample & Assay Technologies
Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...
Complexsample
DNAPureAnalyte
InformationAssayTechnologies
Target Detected
Yes
No
SampleTechnologies
Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins,
Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...
Sample & Assay Technologies
QIAGEN AGM, June 24, 2009, Venlo Slide: 4 Sample & Assay Technologies
Revenues: 2008: $ 893 million 05–08 CAGR: 31%Net income1: 2008: $ 163 million 05–08 CAGR 33%EPS1: 2008: $ 0.80 05–08 CAGR: 20%
Product Range:>500 consumable products □ Sample technologies: to collect, separate, purify,
isolate, stabilize and store samples□ Assay technologies: to make such isolated target
information (DNA, RNA, proteins, etc.) visibleInstrumentation for above consumables
Customers (>400,000)Academic researchPharma/BiotechApplied Testing (veterinary, forensics etc.)Molecular Diagnostics
IP (03/09): >2’000 patents(750+ issued, 780+ pending, 500+ licensed)
Employees: >3‘000 employees based > 30 subsidiaries
1 excluding acquisition, integration and relocation related charges as well as amortization ofacquired IP and equity-based compensation (SFAS 123R)
QIAGEN at a Glance
QIAGEN AGM, June 24, 2009, Venlo Slide: 5 Sample & Assay Technologies
Implementing our strategy
Where we have come from
How our strategy is performing
Achievements - Capabilities
Important milestones
Innovation
Examples
Outlook 2009
Corporate Goals
Investor Relations 2008
Corporate Governance
IR Activities
Share Price Development
QIAGEN AGM, June 24, 2009, Venlo Slide: 6 Sample & Assay Technologies
SystemsBiology
Academia
MolecularDiagnostics
Applied Testing
PharmaceuticalIndustry
WorkflowStandardization
RNA
Protein
Market-segments
DNA
Sample & Assay Technologies
QIAGEN Strategy – Recap
Dis
sem
inat
ion
StandardizationQIAGEN2003
QIAGEN AGM, June 24, 2009, Venlo Slide: 7 Sample & Assay Technologies
QIAGEN Organic GrowthSustainable and Industry Leading
Industry Leading Organic Growth
0%2%4%6%8%
10%12%14%16%18%20%
2005 2006 2007 2008
QIAGENIndustry average
(1) Industry data: Illumina, Luminex, Cepheid, Techne, GenProbe, Sigma Aldrich, Life Technologies (Invitrogen/Applied Biosystems),Bio Rad, Mettler, Meridian, Beckman, Waters, Becton Dickinson, Roche, Thermo, Millipore, Bruker, Celera, Affymetrix, QIAGEN
(1)
QIAGEN AGM, June 24, 2009, Venlo Slide: 8 Sample & Assay Technologies
Human IDForensics
Applied Testing
Animal &Veterinary Testing
Pharmaceutical Industry
QIAGEN: Full Circle - One Core Focus
Academic Research
SampleTechnologies
AssayTechnologies
Molecular Diagnostics
Disseminating Technologies into Four Markets
BiosecurityBiodefense
QIAGEN AGM, June 24, 2009, Venlo Slide: 9 Sample & Assay Technologies
Leading Position – Multiple Growth Drivers
Product and Technology Continuum
SAMPLETechnologies
ASSAYTechnologies
~$28% of sales
PublicPrivate
~20% of sales
DiscoveryDevelopment
~7% of sales
VeterinaryForensicsBio defense
~45% of sales
Sample TechAssay Tech: PCR etc.OEMRegulated assays
Life ScienceResearch
PharmaceuticalIndustry
AppliedTesting
MolecularDiagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 10 Sample & Assay Technologies
Human IDForensics
Applied Testing
Animal &Veterinary Testing
BiosecurityBiodefense
Pharmaceutical Industry
QIAGEN: Full Circle - One Core Focus
Academic Research
SampleTechnologies
AssayTechnologies
Molecular Diagnostics
Disseminating Technologies into Four Markets
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 11 Sample & Assay Technologies
Molecular DiagnosticsStrong Current Market Position & Future
QIAGEN‘s PositionStrong brand, good reputation, large infrastructureCritical assays with a lot of penetration potentialFocused on broad portfolio and MDx laboratoriesAmong fastest growing companies in MDx >20%
Market SituationHigh market growth of 15-20%Decentralization of Molecular Diagnostics continuesMarket strongCapital constraints for smaller hospitals
OpportunitiesSelling breadthNeed for efficiency - Automation and process optimizationNovel markers - Innovation is key success factorPersonalized medicine
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 12 Sample & Assay Technologies
Technology & Infrastructure
Largest sales & marketing forceLargest R&D budget in MDx technologiesLargest Intellectual property estateClose to complete technology portfolioLargest infectious disease assay portfolio
Market position
No. 1 in emerging countriesNo. 2 in PCR technology in MDxNo. 1 in HPV testingNo. 1 in automated sample processingNo. 1 in manual sample preparationNo. 1 OEM partner
(1) Excluding Viral Load and Blood Banking Business
Molecular Diagnostic Landscape (1) Leading Positions
Sales in US$ millions
Market Leadership in Molecular Diagnostics 1
Diagnostics
0
50
100
150
200
250
300
350
400
450
QIAGEN
Roche
MDx
GenProb
e
Abbott
Bayer
Cephe
id
~400
~350
~220
~150 ~140
~90
QIAGEN AGM, June 24, 2009, Venlo Slide: 13 Sample & Assay Technologies
Increasing Importance of Medical Value Expected
IncreasingTesting efficiency
ImprovingMedical value
Value creation
2000 2010 2020
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 14 Sample & Assay Technologies
Focus on Efficiency and Medical Value
Increasing Testing efficiency Improving Medical value
Value creation
2000 2010 2020
Integrated workflows
Infectious disease
Cervical Cx Screening Cancerstratification
Molecular Tumor Staging
HIV: Test &treatment
Ultra-fast , e.g. sepsis analysis
POC Antibiotics selection
Cancer screening
Integrated systems Point-of-care testing
Instrument size
Multiplexing
Menu breath
Data integration
Ease-of-use
High Resolution
Sensitivity Connectivity
Genetic screening
Infectious diseasegenotyping
Examples
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 15 Sample & Assay Technologies
Sample Preparation Assay Setup Detection
Low Throughput
Modules(10-100/day)
Medium-HighThroughputModules
(50-250/day)
IntegratedSystem
(QIAsymphony)(50-250/day)
Consumables
Sample Technologies Assay Technologies
Complete Throughput Range
High ThroughputScreening
(QIAensemble)(250-6000/day)
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 16 Sample & Assay Technologies
Sample Preparation Assay Set Up Detection
Low ThroughputModules
Endpoint (qualitative) PCR
QIAxcel
Medium-High ThroughputModules
Multiplexing
LiquiChip
Medium ThroughputFully integrated System
Real time (quantitative) PCR
RotorGene
High resolution sequence detection and quantification
PyroMark
Multiple Detection Capabilities
~400
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 17 Sample & Assay Technologies
Assay Platform Potential Applications and Research
PyroMark KRAS, RUO, CE Pyrosequencing Colon cancer
PyroMark CpG p16, RUO Pyrosequencing Various cancers
PyroMark BRAF, RUO Pyrosequencing
Colon cancerMelanoma
Ovarian cancerThyroid cancer
PyroMark CpG MLH1, RUO PyrosequencingColon cancer
(hereditary forms)
PyroMark CpG MGMT, RUO Pyrosequencing Glioblastoma
PyroMark CpG LINE-1; RUO Pyrosequencing Various cancers
Fungi ITS2 Primers for PCR, ASR Pyrosequencing/Multiplex Antifungal treatment
MOTT 16S Primers for PCR, ASR Pyrosequencing/Multiplex Antibiotic resistance
artus TPMT LC PCR Kit, RUO, CE real-time PCRLeukemia,
Crohn’s Disease
artus MTHFR PCR Kit, RUO, CE real-time PCR Thrombosis, Atherosclerosis
Olerup SSP ® HLA-B*5701, RUO, CE real-time PCR AIDS
Companion DiagnosticsSelected Diagnostic Assays
CpG = positions of methylationRUO = (for) research use only
MDx instrumentPyroMark Q24
Complete platform
Complete toolbox
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 18 Sample & Assay Technologies
HPV ScreeningSignificant Untapped Potential for HPV Testing
Adoption of existing guidelines
Communication: Patients, physicians
Key focus: market penetration, conversion to Pap+HPV
Creation of medical guidelines (>30 countries!)
Communication: Advocacy, patients, physicians,
Laboratory marketing (>20 players, QIAGEN ~70% share)
Creation of medical guidelines
Significant cost/benefit advantages
Emerging national (primary) screening programs
Substantial Market – Diverse Marketing Profiles
U.S.Current tests: ~ 11.4MPenetration: ~ 30%
EuropeCurrent tests: ~ 2.3MPenetration: ~ 7%
Asia/Latin America:Current tests: 0.9MPenetration: ~ 3%
Asia/LatinAmerica~ $280M
U.S.~ $490M
Europe~ $350M
Total: >$1.1 billionNote: Represents market from existing Pap Smear Tests onlySource: 4/24/07 Long Range Plan
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 19 Sample & Assay Technologies
Molecular DiagnosticsStrategic Direction
BUILD
BUY:
EXTRACT:
Complete system projectsMenu on all platformsIncrease market penetration Brand equity
Relevant diagnostic content or IPAssets that strengthen QIAGEN’s market leadership in MDx
Revenue growthScale
1
Diagnostics
QIAGEN AGM, June 24, 2009, Venlo Slide: 20 Sample & Assay Technologies
Human IDForensics
Applied Testing
Animal &Veterinary Testing
Pharmaceutical Industry
QIAGEN: Full Circle - One Core Focus
Academic Research
SampleTechnologies
AssayTechnologies
Molecular Diagnostics
Disseminating Technologies into Four Markets
BiosecurityBiodefense
2
Applied Test
QIAGEN AGM, June 24, 2009, Venlo Slide: 21 Sample & Assay Technologies
Applied TestingMultiple Segments, Strong Potential
QIAGEN‘s PositionFocus segments: Genetic ID, Veterinary, BiosecurityGrowing assay portfolio, new: complete platformsStrong partnerships established
Market SituationMolecular methods further disseminated in applied fieldsMarket growth 15+%Overall testing markets today ~10% of MDx market volume
OpportunitiesLeverage strong installed base of instrumentationNew, expanded offerings from sample to resultGeographic expansion: Asia, Latin America, Middle EastBenefit from synergies with MDx
2
Applied Test
QIAGEN AGM, June 24, 2009, Venlo Slide: 22 Sample & Assay Technologies
QIAGEN With Focus on Growth Markets
Development Introduction Growth Consolidation Saturation Decline
Applied Testing Market Segments Along Market Stage
GenID
Vet - production
Vet - companion
Food - GMO
Food - pathogen
Biosecurity
Food - ID
Quality control – pharma
Environmental
Quality control – personal care products
High
Fit to QIAGEN
Moderate
NAT Market2007 in Mio$
200
2
Applied Test
QIAGEN AGM, June 24, 2009, Venlo Slide: 23 Sample & Assay Technologies
Applied TestingStrategic Direction
BUILD
BUY:
EXTRACT:
Build assay portfolioSales & Marketing channel globallyBrand equity New segment
Content, Assays and/or IP
Growth Synergy value
2
Applied Test
QIAGEN AGM, June 24, 2009, Venlo Slide: 24 Sample & Assay Technologies
Human IDForensics
Applied Testing
Animal &Veterinary Testing
BiosecurityBiodefense
Pharmaceutical Industry
QIAGEN: Full Circle - One Core Focus
Academic Research
SampleTechnologies
AssayTechnologies
Molecular Diagnostics
Disseminating Technologies into Four Markets
3Pharma
QIAGEN AGM, June 24, 2009, Venlo Slide: 25 Sample & Assay Technologies
Pharmaceutical IndustryDiscovery Fluctuating, Development Strong
QIAGEN‘s Position (approx 20% of sales)Unique offering „Research – Pharma – Diagnostic“Dedicated sales channelPersonalized medicine: Several collaborations in progress
Market SituationMolecular methods penetrating complete R&D value chainPersonalized medicine now realityDiscovery (10-12% of Q) constrainedDrug development (8-10% of Q): strongService organizations & academia supporting efforts
OpportunitiesPortfolio expansion into clinical areasNew platforms Strength in oncology assays
3Pharma
QIAGEN AGM, June 24, 2009, Venlo Slide: 26 Sample & Assay Technologies
Pharmaceutical IndustryStrategic Direction
BUILD
BUY:
EXTRACT:
Awareness for today’s offeringContinuum “Research-Pharma-Diagnostics”Standardization
Assets which expand innovation leadership in Sample & Assay Technologies without diluting focus
Diagnostic contentSynergy in validation, regulatoryGrowth
3Pharma
QIAGEN AGM, June 24, 2009, Venlo Slide: 27 Sample & Assay Technologies
Human IDForensics
Applied Testing
Animal &Veterinary Testing
BiosecurityBiodefense
Pharmaceutical Industry
QIAGEN: Full Circle - One Core Focus
Academic Research
SampleTechnologies
AssayTechnologies
Molecular Diagnostics
Disseminating Technologies into Four Markets
4Academia
QIAGEN AGM, June 24, 2009, Venlo Slide: 28 Sample & Assay Technologies
Academic MarketsSource of Innovation
QIAGEN‘s PositionIn most segments QIAGEN with #1 or #2 positionAmong fastest growing companies in academic marketStrong brand and good reputation
Market SituationNew U.S. administration focus on innovation,Europe committed Scientific knowledge in Life Sciences increasingNew hot topics emerging faster and faster:
miRNAEpigenetics
OpportunitiesInnovation and quality leaderHigh growth areas: e.g. miRNA, EpigeneticsStimulus packages big upside
4Academia
QIAGEN AGM, June 24, 2009, Venlo Slide: 29 Sample & Assay Technologies
19.375
17.773
16.648
15.455
14.257
12.247
10.219
8.796
7.349
5.772
4.044
2.3541.427919
0
5.000
10.000
15.000
20.000
25.000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
QIAGEN Quotes in Scientific Literature…
CAGR ~ 30%
4Academia
Number of Journal Articles citing QIAGEN Products and Protocols
Source: Medline, Pubmed, Scirus
QIAGEN AGM, June 24, 2009, Venlo Slide: 30 Sample & Assay Technologies
Stimulus adding $14 billion in R&D funding until 2011$10 billion National Institutes of Health$3 billion National Science Foundation$1 billion NIST* and Department of DefenseStimulus impact potentially starting in Q4 2009Most of the funding in 2010
Our focus is on helping our customers access these fundsFormed a dedicated teamOutreach and support programs to customers with current and new grant proposals
Size of this opportunityImpact: difficult to quantify, min. $20 million in 2010Private and state funding situation
Potentially much more important:Long-term, “regular” increases in research funding planned (!)
http://www1.qiagen.com/productnews/StimulusSupport/default.aspx
U.S. Stimulus Program4Academia
NIST - National Institute of Standards and Technology
QIAGEN AGM, June 24, 2009, Venlo Slide: 31 Sample & Assay Technologies
Academic ResearchStrategic Direction
BUILD
BUY:
EXTRACT:
Innovation leadershipStandardizationBrand equity differentiationAutomation in labs
Assets which expand innovation leadership in Sample & Assay Technologies without diluting focus
InnovationReputation
4Academia
QIAGEN AGM, June 24, 2009, Venlo Slide: 32 Sample & Assay Technologies
Implementing our strategy
Where we have come from
How our strategy is performing
Achievements - Capabilities
Important milestones
Innovation
Examples
Outlook 2009
Corporate Goals
Investor Relations 2008
Corporate Governance
IR Activities
Share Price Development
QIAGEN AGM, June 24, 2009, Venlo Slide: 33 Sample & Assay Technologies
„Mexico Goes HPV“
Mexico Launches Campaign Against Cervical Cancer with HPV Screening
QIAGEN AGM, June 24, 2009, Venlo Slide: 34 Sample & Assay Technologies
Sample Preparation Assay Setup Detection
Low Throughput
Modules(10-100/day)
Medium-HighThroughputModules
(50-250/day)
IntegratedSystem
(QIAsymphony)(50-250/day)
Consumables
Sample Technologies Assay Technologies
Complete Throughput Range
High ThroughputScreening
(QIAensemble)(250-6000/day)
QIAGEN AGM, June 24, 2009, Venlo Slide: 35 Sample & Assay Technologies
Innovation – Measurement of Success
Awards
Products < 5 years old(1)
# of launched products ~ 250Revenues share ~28%
Products < 5 years old(1)
# of launched products ~ 250Revenues share ~28%
Products < 1 years old (1)
# of launched products 50Revenues share ~5%
Products < 1 years old (1)
# of launched products 50Revenues share ~5%
Products < 3 years old(1)
# of launched products 170Revenues share ~16%
Products < 3 years old(1)
# of launched products 170Revenues share ~16%
QIAGEN AGM, June 24, 2009, Venlo Slide: 36 Sample & Assay Technologies
QIAGENcares Program
QIAGENcares:Corporate Social Responsibility program in emerging countriesPublic-private partnerships:
Leading cliniciansCorporate partnersWomen’s advocacy groups
Focus on diagnostic tests:Fevers: Dengue, Malaria etc.Infectious disease: HPV, HIV, HBV, HCV, TB, others
Donation programs to initiate and facilitate implementation
QIAGENcares – initiatives:Donation program: 1 million HPV tests to GAVI countriesPartnered with:
CNCI* - HPV screening in IndiaCancer Foundation, China - nationwide HPV testingcareHPV development
Success Based on Social Responsibility*CNCI = Chittaranjan National Cancer Institute
QIAGEN AGM, June 24, 2009, Venlo Slide: 37 Sample & Assay Technologies
Implementing our strategy
Where we have come from
How our strategy is performing
Achievements - Capabilities
Important milestones
Innovation
Examples
Outlook 2009
Corporate Goals
Investor Relations 2008
Corporate Governance
IR Activities
Share Price Development
QIAGEN AGM, June 24, 2009, Venlo Slide: 38 Sample & Assay Technologies
Where We Are – What Comes Next
Approaching US$1 billion in sales
Complete product and technology portfolio
Repositioning: from change management to growth management
Execution
Efficiency, effectiveness of actions
Strategy-centric to customer-centric
Execution
Solidify and expand bridgeheads/claims
Integrate/move complete portfolio
Platform advancement in time/spec
Content expansion
Expansion/defense of tech lead
QIAGEN AGM, June 24, 2009, Venlo Slide: 39 Sample & Assay Technologies
Implementing our strategy
Where we have come from
How our strategy is performing
Achievements - Capabilities
Important milestones
Innovation
Examples
Outlook 2009
Corporate Goals
Investor Relations 2008
Corporate Governance
IR Activities
Share Price Development
QIAGEN AGM, June 24, 2009, Venlo Slide: 40 Sample & Assay Technologies
Highest Standards in Corporate Governance
QIAGEN N.V. is
1) Organized under the laws of Netherlands2) Listed on NASDAQ3) Listed in the Prime Standard Segment (TecDax) of the
Frankfurt Stock Exchange, Germany
QIAGEN placed highest standards on Corporate Governance Principles by endorsement of the codes of:
1) The Netherlands2) NASDAQ - Corporate Governance Rules3) Germany - Corporate Governance Code
Deviations from specific rules due to incompatibilities between these foreign regulations are explained in QIAGEN’s annual report which is published on QIAGEN‘s homepage (www.QIAGEN.com)
Highest Standards in Corporate Governance
QIAGEN AGM, June 24, 2009, Venlo Slide: 41 Sample & Assay Technologies
QIAGEN Investor Relations 2008
1. Analyst Day in New York > 80 participants
Presentations on Conferences, worldwide 23
International Roadshows 25
Meetings with Investors, One-on-Ones > 600
Visits at QIAGEN in Germany and USA > 20
QIAGEN AGM, June 24, 2009, Venlo Slide: 42 Sample & Assay Technologies
QIAGEN Investor Relations 2008
* Ratings not older than 90 days
Institutions (Banks, other) publishing research on QIAGEN: 30Analysts publishing research on QIAGEN: >35
Analysts’ Ratings* (per June 19, 2009)
0
2
4
6
8
10
12
14
16
Buy/Outperform Neutral Underperform
QIAGEN AGM, June 24, 2009, Venlo Slide: 43 Sample & Assay Technologies
QIAGEN Shares vs. NASDAQ Biotech Index
QIAGEN AGM, June 24, 2009, Venlo Slide: 44 Sample & Assay Technologies
QIAGEN Shares vs. TecDAX
QIAGEN AGM, June 24, 2009, Venlo Slide: 45 Sample & Assay Technologies
Key Investment ConsiderationsStrong Growth at Low-Risk
Strong Strategic PositionAddressing high growth marketsFocused, complete and technology-leading portfolioCritical mass, well functioning organizationInnovation success – acquisition success
Innovation is keyProven innovation leadership in industry> 80 product launches in 20085% of revenue growth from new introduced products
Strong Financial Performance 2008 Revenue growth: 37%Organic adj. growth: 13%Operating cash flow up 98% to US$168 M in 2008
QIAGEN AGM, June 24, 2009, Venlo Slide: 46 Sample & Assay Technologies
QIAGEN – Sample and Assay Technologies
Annual General MeetingFiscal Year 2008
Venlo, June 24, 2009
QIAGEN AGM, June 24, 2009, Venlo Slide: 47 Sample & Assay Technologies
Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. To the extent that any of the statements contained herein relating to QIAGEN's products and markets and operating results are forward-looking, such statements are based on current expectations that involve a number of uncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management of growth and international operations (including the effects of currency fluctuations), variability of operating results, the commercial development of the DNA sequencing, genomics and synthetic nucleic acid-related markets, as well as the nucleic acid-based molecular diagnostics, applied testing markets and geneticvaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including fluctuations from certain events including funding, budgets, and others), difficulties in successfully adapting QIAGEN’s products to integrated solutions and producing such products, the ability of QIAGEN to identify and develop new products and to differentiate its products from competitors, the management of intellectual property, and the integration of acquisitions of technologies and businesses. In addition certain statements contained in this news release are based on company assumptions, including, but not limited, to revenue allocations based on business segments. For further information, refer to the discussion in reports that QIAGEN has filed with or furnished to the U.S. Securities and Exchange Commission (SEC).
Regulation G: The following slides contain certain summary information about QIAGEN N.V.’s sales, gross profit, operating income, net income, and earnings per share over a specific period and the comparable period, which information is presented on a “non-GAAP financial measures” basis rather than in accordance with U.S. generally accepted accounting principles (GAAP). Please review QIAGEN’s press releases for information on the company’s operating income, net income, and earnings per share for these periods presented on a GAAP basis. Such GAAP-basis information will also be contained in the company’s reports on Form 20-F or Form 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission.
Forward Looking Statements
QIAGEN AGM, June 24, 2009, Venlo Slide: 48 Sample & Assay Technologies
Agenda
1. Opening
QIAGEN AGM, June 24, 2009, Venlo Slide: 49 Sample & Assay Technologies
2. Managing Board Report for the Year endedDecember 31, 2008, (“Fiscal Year 2008”)
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 50 Sample & Assay Technologies
Exceeded revenues guidance US$893.0 MStrong organic revenue growth
Overall 13%MDx growth, HPV a strong driver >20%
EPS, adj. reached high end US$ 0.80Operating income, adj. growth 54%Record revenues from 12 mo new products 5%Underlying fundamental momentum
Acquired CorbettAdded Rotor-Gene Real Time PCR CyclersAdded CAS Assay Setup System
Acquired pyrosequencing technology and product portfolio
>80 new products in 2008: focus on automation,genotyping, and functional analysis5 new MDx assays launched
2009 launches include: QIAsymphony AS , QIAgility, PyroMark, EZ1 Advanced XL, RotorGene Q, QIAxtractor
Strategic and Other
Financials
Fiscal Year 2008Overview
Adjusted figures exclude business integration and relocation related charges as well as amortization of acquired intangibles and equity-based compensation (SFAS 123R). EPS 2008 includes a non-cash tax charge of US$ 0.01 from revaluation of acquired tax positions.
QIAGEN AGM, June 24, 2009, Venlo Slide: 51 Sample & Assay Technologies
200
300
400
500
600
700
800
900
1000
2005 2006 2007 2008
20
30
40
50
60
70
80
90
2005 2006 2007 2008
CAGR2005-2008 = 31%
CAGR2005-2008 = 20%R
even
ues
in U
S$m
EPS,
adj
. in
US$
cen
t
Revenue and EPS, adj. Growth 2005 - 2008
+US$243 M
+US$0.17
Adjusted figures exclude business integration and relocation related charges as well as amortization of acquired intangibles and equity-based compensation (SFAS 123R). EPS 2008 includes a non-cash tax charge of US$ 0.01 from revaluation of acquired tax positions.
QIAGEN AGM, June 24, 2009, Venlo Slide: 52 Sample & Assay Technologies
Fiscal Year 2008 Revenue Distribution
RoW
Americas49% growth50% growth CER
Europe21% growth17% growth CER
By Product Groups By Geographic Regions
88%
11%
50% 37%
10%
Others
CER = Constant Exchange Rates
Sample and Assay Technologies36% growth34% growth CER
Instruments51% growth52% growth CER
Asia24% growth16% growth CER
QIAGEN AGM, June 24, 2009, Venlo Slide: 53 Sample & Assay Technologies
Significant Sales and Marketing PowerAs of December 31, 2008
> 1,300 Sales and Marketing Professionals
Americas Approx 50% of Sales: Sales and Marketing Force: 511
Europe Approx 37% of SalesSales and Marketing Force: 513
Asia Approx 10% of SalesSales and Marketing Force: 272
MARKETS
Biomedical
MDx
Inside SalesE-commerce
Appl. Testing
SPECIALISTS
Channels
Pharma
Research
QIAGEN AGM, June 24, 2009, Venlo Slide: 54 Sample & Assay Technologies
300
400
500
600
700
800
900
1000
RevenuesFY 2007
Price Volume Newproducts
Acquisitions Exchangerates
RevenuesFY 2008
0
Organic Growth 13%
~ 2%
~ 5%~ 6%
~ 37%~ 22%
US$M
Fiscal Year 2008Growth Drivers
New Products and Volume Drive Strong Organic Growth
~ 2%
QIAGEN AGM, June 24, 2009, Venlo Slide: 55 Sample & Assay Technologies
2008 2007 Growth
Net sales (US$M) 893.0 649.8 37%
Operating income (US$M), adj.1 252.7 164.3 54%
Operating margin, adj.,1 28% 25%
Net income (US$M), adj.1,2 163.3 111.5 47%
EPS (US$), adj.1,2 0.80 0.63 27%
Big Jump in Operating Margin, adj. to 28%
Fiscal Year 2008At a Glance
1 Excluding business integration and relocation related charges as well as amortization of acquired IP andequity-based compensation (SFAS 123R)
2 Including a non-cash tax benefit of US$ 0.02 per share in 2007 and including a non-cash tax charge of US$ 0.01 per share from revaluation of acquired tax positions in 2008
QIAGEN AGM, June 24, 2009, Venlo Slide: 56 Sample & Assay Technologies
Strong Balance Sheet Structure
50%50%Equity ratio
In US$ millionsexcept share data Fiscal 2008 Fiscal 2007 Change
Cash & cash equivalents 333.3 347.3 -4%
Working capital 441.2 482.2 -9%
Total assets 2,885.3 2,775.2 4%
Total long term liabilities 1,169.1 1,217.3 -4%
Total shareholders’ equity 1,453.8 1,391.6 4%
Number of shares outstanding 197,839,113 195,335,076 1%
Fiscal Year 2008Balance Sheet
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Current Debt Maturity Profile
Notes: (a) Revolving Credit Facility - currently not drawn(b) conversion price US$12.64(c) final maturity in 2024 – first investor put/issuer call in 2011(d) conversion price US$20.00(e) final maturity in 2026 – first investor put/issuer call in 2013
Maturities of QIAGEN’s current main debt instruments
amount in US$m 2009 2010 2011 2012 2013
Syndicated RCF 150 150
Term Loan 500 25 50 75 350
Convertible Bond 2004 145 150
Convertible Bond 2006 300 300
25 50 75 350
(a)
(b) (c)
(d) (e)
QIAGEN AGM, June 24, 2009, Venlo Slide: 58 Sample & Assay Technologies
Development of Net Debt and EBITDA
Historic development of net debt and EBITDA (a)
Leverage rationet debt / EBITDA (a)
Notes: (a) Adjusted figures excluding acquisition, integration and restructuring related charges as well as equity-basedcompensation (SFAS 123R)
636 645
3 26
127143
195
290
113
0
100
200
300
400
500
600
700
800
900
1,000
2004 2005 2006 2007 2008
in U
S$m
0
50
100
150
200
250
300
350
in US
$m
Net Debt (lhs) EBITDA (rhs)
-0.10.0
3.3
0.2
2.2
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2004 2005 2006 2007 2008
Net Debt / EBITDA
QIAGEN AGM, June 24, 2009, Venlo Slide: 59 Sample & Assay Technologies
20%1,585,5581,908,161Balance at December 31
-9,469-93,621RSUs forfeited
205%-127,273-388,342RSUs vested
-7%864,855804,566RSUs granted
857,445-RSUs assumed in acquisition
-1,585,558Balance at January 1
ChangeFiscal 2007Fiscal 2008Restricted Stock Units (RSUs)
Stock Options Fiscal 2008 Fiscal 2007 ChangeBalance at January 1 11,362,641 11,716,539
Options assumed in acquisition - 4,139,854
Options granted 432,725 379,598 14%
Options exercised -1,340,914 -4,551,655 -71%
Options forfeited -179,456 -321,695
Balance at December 31 10,274,996 11,362,641 -10%
Stock Options and Restricted Stock Units (RSUs)Summary of Changes
QIAGEN AGM, June 24, 2009, Venlo Slide: 60 Sample & Assay Technologies
In US$ millions unless indicated 2008 2007Net income 89.0 50.1
Depreciation & amortization 105.7 62.6
Purchased in-process R&D 1.0 25.9
Others, net (22.7) (53.8)
Operating cash flow 173.0 84.8
Capital expenditures (39.4) (34.5)
Free cash flow1 133.6 50.3
1 Free cash flow computed using net cash from operating activities less capital expenditures
Fiscal Year 2008Cash Flow and Balance Sheet Key Figures
In US$ millions unless indicated As of 12/31/2008Cash and cash equivalents 333Net debt 645Near term payment obligations(next 12 months) 25Equity ratio 50%Net debt / EBITDA, adj. ratio 2.2
QIAGEN AGM, June 24, 2009, Venlo Slide: 61 Sample & Assay Technologies
2005 2006 2007 2008
2005 2006 2007 2008
Inventory Days
Receivables-DSO
Target 2008140 days
Managing Working CapitalAnnual Average Key Figures
All figures to be read asannual average.
Target 200860 days
Industry standard70 days
165
154
143
58 61 60
147
61
QIAGEN AGM, June 24, 2009, Venlo Slide: 62 Sample & Assay Technologies
Americas Europe Asia RoWTotal2008
Total2007 Growth
Production 260 382 57 56 755 650 16%
R&D 111 378 20 20 529 461 15%
Sales 437 392 253 33 1,115 925 21%
Marketing 74 121 19 4 218 229 -5%
Admin 138 209 60 17 424 397 7%
Total 1,020 1,482 409 130 3,041 2,662 14%
Employees December 31, 2008
Development Programs Available for most of our 3,000 Employees make QIAGEN“Top Employer” in Germany in 2008 by Handelsblatt
Ranked No.1 in the field of Personnel Development in 2009
QIAGEN AGM, June 24, 2009, Venlo Slide: 63 Sample & Assay Technologies
3. Supervisory Board Report on the Company'sAnnual Accounts (the "Annual Accounts")for Fiscal Year 2008
Agenda
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4. Adoption of the Annual Accountsfor Fiscal Year 2008
Agenda
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5. Reservation and dividend policy
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 66 Sample & Assay Technologies
6. Approval of the performance of theManaging Board during Fiscal Year 2008, including a discharge from liability with respect to the exercise of their dutiesduring Fiscal Year 2008
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 67 Sample & Assay Technologies
7. Approval of the performance of theSupervisory Board duringFiscal Year 2008, including a dischargefrom liability with respect to the exerciseof their duties during Fiscal Year 2008
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 68 Sample & Assay Technologies
8. Reappointment of
Dr. Werner Brandt, Dr. Metin Colpan,Mr. Erik Hornnaess, Prof. Dr. Manfred Karobath,Mr. Heino von Prondzynski, and Prof Dr. Detlev H. Riesner
as Supervisory Directors of the Companyfor a term ending on the date of theAnnual General Meeting in 2010
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 69 Sample & Assay Technologies
9. Reappointment of
Mr. Peer M. Schatz,Mr. Roland Sackers,Dr. Joachim Schorr, andMr. Bernd Uder
as Managing Directors of the Companyfor a term ending on the date ofthe Annual General Meeting in 2010
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 70 Sample & Assay Technologies
10. Reappointment of Ernst & YoungAccountants as auditors of theCompany for the fiscal year endingDecember 31, 2009
Agenda
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11. Authorization of the Managing Board,until December 24, 2010,to acquire shares in theCompany’s own share capital
Agenda
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12. Questions
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 73 Sample & Assay Technologies
4. Adoption of the Annual Accounts for Fiscal Year 2008
has been adopted
6. Approval of the performance of the Managing Board duringFiscal Year 2008, including a discharge from liability withrespect to the exercise of their duties during Fiscal Year 2008
has been adopted
Summary
QIAGEN AGM, June 24, 2009, Venlo Slide: 74 Sample & Assay Technologies
7. Approval of the performance of the Supervisory Board during Fiscal Year 2008 including a discharge from liability with respect to the exercise of their duties duringFiscal Year 2008
has been adopted
8. Reappointment of Dr. Werner Brandt , Dr. Metin Colpan,Mr. Erik Hornnaess, Prof. Dr. Manfred Karobath, Mr. Heino von Prondzynski, and Prof Dr. Detlev H. Riesneras Supervisory Directors of the Company for a termending on the date of the Annual General Meeting in 2010
has been adopted
Summary
QIAGEN AGM, June 24, 2009, Venlo Slide: 75 Sample & Assay Technologies
9. Reappointment of Mr. Peer M. Schatz,Mr. Roland Sackers, Dr. Joachim Schorr, andMr. Bernd Uder as Managing Directors of the Companyfor a term ending on the date of theAnnual General Meeting in 2010
has been adopted
10. Reappointment of Ernst & Young Accountants asauditors of the Company for the fiscal year endingDecember 31, 2009
has been adopted
11. Authorization of Managing Board, until December 24, 2010, to acquire shares in the Company's own share capital
has been adopted
Summary
QIAGEN AGM, June 24, 2009, Venlo Slide: 76 Sample & Assay Technologies
13. Closing of
QIAGENAnnual General MeetingFiscal Year 2008
June 24, 2009
Agenda
QIAGEN AGM, June 24, 2009, Venlo Slide: 77 Sample & Assay Technologies
Thank you very much for joining
QIAGEN‘sFiscal 2008 Annual General Meeting
Have a good journey home!