Tarrytown, May 23, 2017
Berenberg
European
Conference
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.
2 www.stratec.com Berenberg European Conference –
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www.stratec.com 3
AGENDA
OVERVIEW AND BUSINESS MODEL
THE IVD MARKET
FINANCIALS
FUTURE GROWTH
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OVERVIEW AND
BUSINESS MODEL
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Overview & Business Model Financials The IVD Market Future Growth
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STRATEC AT A GLANCE
Market leader in automation solutions for the
diagnostics industry and translational research
~ 1.000 employees worldwide
More than 13,000 systems with medium to high
throughput installed globally (e.g. DiaSorin’s LIAISON XL |
Hologic/Gen-Probe’s PANTHER | Siemens’ ADVIA Centaur | bioMérieux’s
new VIDAS)
More than 25,000 low throughput systems installed
globally
Revenue € 184.9 million in 2016 (CAGR revenues since IPO: ~18%)
Revenue growth forecasted
to € 205 - € 220 million in 2017
Dividend payments raised over 12 consecutive years
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Overview & Business Model Financials The IVD Market Future Growth
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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
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Overview & Business Model Financials The IVD Market Future Growth
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STRATEC provides instrumentation, consumables, software and automation solutions
– OEM development and manufacturing
– More than 7,000 fully automated analyzer systems manufactured in 2016
– 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
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“Simoa HD-1” for Quanterix Consumable for “Simoa HD-1”
Overview & Business Model Financials The IVD Market Future Growth
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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
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“LIAISON XL” for DiaSorin
“PANTHER” for Hologic
Overview & Business Model Financials The IVD Market Future Growth
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EXPANDING THE LAB AUTOMATION VALUE CHAIN
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Analyzer
System
Smart
Consumables sample prep
chemistry Software Reagents Consumables Market
access
Diagnostic companies
• Specialized in development and design of polymer consumables / injection molding
• OEM supplier of smart consumables for diagnostics, life sciences and medical technology applications
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Overview & Business Model Financials The IVD Market Future Growth
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DIATRON – EXPANDING THE VALUE CHAIN
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Hematology
• Leading global OEM developer
and manufacturer of hematology and clinical chemistry analyzers and related consumables for use in both human and veterinary medicine
• Specialized in the fragmented
markets of decentralized diagnostics
• Revenues of ~€ 34 million in 2015
Laboratory Blood bank
Immunoassay
• LIAISON® XL
(DiaSorin)
• ADVIA Centaur® CP
(Siemens)
• Evolis (Bio-Rad)
• Liaison XS* (DiaSorin)
• …
Immunohematology
• GalileoNEO (Immucor)
• TANGO™ Infinity (Bio-Rad)
• MosaiQ* (Quotient)
• …
Molecular
• Panther™ (Hologic)
• Fusion* (Hologic)
• Simoa (Quanterix)
• Invigenius (platform)
• Pure (platform)
• …
Serology
• MosaiQ* (Quotient)
• High throughput multiplexing instrument*
• …
*under development
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THE IVD MARKET
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Overview & Business Model Financials The IVD Market Future Growth
80%
5% 15%
Reagents / Chemistry
Instrument Services
Instrumentation
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IVD MARKET SEGMENTS / IVD Market: ~ 50 billion USD in 2015
High Throughput
Low Throughput
Total instrumentation
~ 7.5 billion USD
Market by product type
Number of systems
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CAGR 2013 - 2018:
IVD Market: 4%
Molecular Diagnostic: 8% Immunodiagnostics: 4%
Hematology: 2% Blood bank: 6%
Source: The worldwide market for In Vitro Diagnostic Tests, 9th Edition.
Market by sector
Overview & Business Model Financials The IVD Market Future Growth
OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET
Total
instrumentation
~ 7.5 billion
USD
13
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
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Overview & Business Model Financials The IVD Market Future Growth
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A SELECTION OF STRATEC CUSTOMERS
Source: IVD News / figures adjusted by acquisitions in 2012 / non-public companies estimated / non-reported sector revenues estimated
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GLOBAL TOP 20 IVD COMPANIES 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
… AND OTHER
GAME-CHANGING COMPANIES
(acquired by Bio-Rad in January 2017)
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FINANCIALS
Overview & Business Model Financials Future Growth The IVD Market
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FINANCIALS AT A GLANCE
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(in € 000s) Mar 31, 2017 Mar 31, 2016 Change
Sales 49.510 31.218 +58.6%
EBITDA1 8.812 5.703 +54.5%
EBITDA margin (%)1 17.8 18.3 -50 bps
EBIT2 6.870 4.530 +51.7%
EBIT margin (%)2 13.9 14.5 -60 bps
Cons. net income2 5.369 3.424 +56.8
Earnings per share (€)2 0.45 0.29 +55.2
Key figures after the first three months
1 2017 figure adjusted to exclude expenses resulting from transaction activities and related reorganization expenses 2 2017 figure additionally adjusted to exclude purchase price allocation-related amortization, financing expenses and
tax expenses in connection with the acquisitions of the Diatron Group and STRATEC Consumables
Overview & Business Model Financials Future Growth The IVD Market
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SALES
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3-Months Sales compared to Annual Sales
€ m
illio
n
29.2 34.4 34.5
128.0
0
20
40
60
80
100
120
140
160
180
200
2013 2014 2015 2016 2017
3-Months Sales as of 03/31
Annual Sales as of 12/31
144.9 146.9
184.9
49.5
31.2
Q1|2017 Sales
• +58.6% to € 49.5 million
• Organic growth +21.1%
• Contribution of Diatron and
STRATEC Consumables
• High volume of development
activities
Overview & Business Model Financials Future Growth The IVD Market
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EBIT & EBIT MARGIN
Q1 EBIT EBIT margin
EBIT in € million EBIT margin in %
4.4
5.3
5.8
4.5
6.9
12%
13%
14%
15%
16%
17%
18%
19%
20%
0
2
4
6
8
2013 2014 2015 2016 2017
EBIT margin affected by
• Product mix
• Diluted margins from new
subsidiaries
• Hiring of staff in connection
with numerous product
developments
As of March 31
Overview & Business Model Financials Future Growth The IVD Market
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ADJUSTMENTS
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FUTURE GROWTH
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Overview & Business Model Financials Future Growth The IVD Market
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FOCUS IN 2017 AND BEYOND
• Improve profitability across business (benefits of scale driven by top-line growth)
• Further realize synergies through development activities across STRATEC businesses
• Expand leading market role
• Facilitate process of instrument/consumables integration for partners
• Achieve milestones & market launches
• Execute important development and supply agreements
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FINANCIAL GUIDANCE
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• Sales guidance for 2017: € 205 million to € 220 million
• Organic double digit top line growth in 2017
• Profitability in 2017 on a broadly stable level
• Guidance to be updated with H1 results in July 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
TICKER Symbol: SBS.DE
Bloomberg: SBS:GR
Reuters: SBSG.DE
ISIN: DE000STRA555
WKN: STRA55
CONTACT
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APPENDIX
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KEY FIGURES AT A GLANCE
IFRS (€ million) 2012 2013 2014 2015 2016
Sales 122.7 128.0 144.9 146.9 184.9
EBIT 15.6 19.5 24.1 26.9 32.31
EBIT margin (%) 12.7 15.2 16.6 18.3 17.51
Consolidated net income 12.5 15.5 19.8 22.1 25.42
Earnings per share (€) 1.06 1.32 1.68 1.87 2.142
Dividend per share (€) 0.56 0.60 0.70 0.75 0.77
No. of employees 533 546 544 583 976
Total assets 108.5 117.8 137.8 158.9 258
Equity ratio (%) 80.7 82.5 81.3 82.0 55.7
Free cash flow 0.4 13.5 32.9 17.3 -70.4
AS OF DECEMBER 31
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1 2016 figure adjusted for one-off items resulting from transaction activities and related reorganization expenses 2 2016 figure additionally adjusted for financing expenses and tax expenses in connection with the acquisitions of the Diatron Group and STRATEC Consumables,
for one-off items resulting from the tax audit for the 2009 to 2013 assessment periods, and for tax effects relating to reorganization expenses
SHAREHOLDER STRUCTURE & SHARE
SHARE IPO Aug. 1998
Capital increase < 10%, Mar. 2002
< 10%, Sep. 2005
Number of shares 11,860,995
Share price (05/17/2017) € 58.77
Market capitalization € 697 million
Fixed and family ownership
(incl. investment companies)
Treasury shares
Retail investors incl. not
identified institutional investors
Institutional investors
SHAREHOLDER STRUCTURE (as of: 03/31/2017)
~ 41.5%
~ 21.7%
~ 36.7%
~ 0.1%
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INSTITUTIONAL SHAREHOLDERS
Holder Name Holding
OppenheimerFunds, USA 5.2 %
Allianz IARD, FRA 5.1 %
Columbia Threadneedle Investments, GBR 5.0 %
Montanaro Asset Management, GBR 2.8 %
BNP Paribas Investment Partners Belgium, FRA 2.5 %
Deutsche Asset Management Investment, GER 2.5 %
Juno Investment Partners, NED 1.6 %
Comgest, FRA 1.2 %
Wellington Management Company, USA 1.1 %
Lupus alpha Asset Management, GER 1.1 %
Schroder Investment Management North America, USA 1.0 %
Amundi Asset Management, FRA 0.7 %
Credit Suisse, SUI 0.6 %
Royce & Associates, USA 0.5 %
BlackRock Asset Management Deutschland, GER 0.5 %
TOP 15 AS OF DECEMBER 31, 2016
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ANALYST COVERAGE
Berenberg Bank
Jakob Berry
Phone: :+44 20 3465-2724
Deutsche Bank
Falko Friedrichs
Phone : +49 69 91036270
HSBC Trinkaus & Burkhardt
Jan Keppeler
Phone : +49 211 9102446
Landesbank Baden-Württemberg
Volker Stoll
Phone : +49 711 12770568
Warburg Research
Michael Heider
Phone: +49 40 309537280
DZ Bank
Sven Kürten
Phone : +49 69 744792072
Kepler Cheuvreux
Oliver Reinberg
Phone : +49 69 75696140
METZLER Capital Markets
Alexander Neuberger
Phone: +49 69 2104 4366
Oddo Seydler Bank
Igor Kim
Phone: +49 69 92054815
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FINANCIAL CALENDAR
06/14//2017 Annual General Meeting, Pforzheim, GER
05/23/2017 Berenberg European Conference, Tarrytown, USA
06/08/2017 Jefferies 2017 Global Healthcare, New York, USA
07/25/2017 Publication of Half-yearly Financial Report H1|2017
08/29/2017 Commerzbank Sector Conference, Frankfurt, GER
09/06-07/2017 14th Annual Goldman Sachs European Medtech and Healthcare Services, London, UK
09/18-20/2017 6th German Corporate Conference, Munich, GER
10/26/2017 Publication of Quarterly Statement 9M|2017
11/28/2017 German Equity Forum, Frankfurt, GER
Subject to confirmation and amendments
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