2019 Analyst & Investor Day Financial update Greater value creation with improved growth, margins and capital discipline Roland Sackers Chief Financial Officer Sample to Insight
Disclaimer Safe Harbor Statement: This presentation contains both historical and forward-looking statements. All Regulation G: QIAGEN reports adjusted results, as well as results on a constant exchange rate (CER) statements other than statements of historical fact are, or may be deemed to be forward looking basis, and other non-U.S. GAAP figures (generally accepted accounting principles), to provide additional statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section insight on performance. In this presentation, adjusted results include adjusted net sales, adjusted 21E of the U.S. Securities Exchange Act of 1934, as amended. These statements are based on current operating expenses, adjusted EBITDA, adjusted diluted EPS and free cash flow. Adjusted results are non- expectations of future events. If underlying assumptions prove inaccurate or unknown risks or uncertainties GAAP financial measures QIAGEN believes should be considered in addition to reported results prepared materialize, actual results could vary materially from our own expectations and projections. Some of the in accordance with GAAP, but should not be considered as a substitute. QIAGEN believes certain items factors that could cause actual results to differ include, but are not limited, to the following: general industry should be excluded from adjusted results when they are outside of its ongoing core operations, vary conditions and competition; risks associated with managing growth and international operations (including significantly from period to period, or affect the comparability of results with its competitors and its own prior periods. Please see the Appendix provided in this presentation “Reconciliation of Non-GAAP to the effects of currency fluctuations, regulatory processes and dependence on logistics), variability of GAAP Measures” for reconciliations of historical non-GAAP measures to comparable GAAP measures and operating results and allocations between customer classes, and the commercial development of markets for our products to customers in academia, pharma, applied testing and molecular diagnostics; changing the definitions of terms used in the presentation. QIAGEN does not reconcile forward-looking non-GAAP relationships with customers, suppliers and strategic partners; competition; rapid or unexpected changes in financial measures to the corresponding GAAP measures due to the high variability and difficulty in making technologies; fluctuations in demand for QIAGEN's products (including factors such as general economic accurate forecasts and projections that are impacted by future decisions and actions. Accordingly, conditions, the level and timing of customers' funding, budgets and other factors); our ability to obtain reconciliations of these forward-looking non-GAAP financial measures to the corresponding GAAP regulatory approval of our products; technological advances of our competitors and related legal disputes; measures are not available without unreasonable effort. However, the actual amounts of these excluded items will have a significant impact on QIAGEN’s GAAP results. 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 and protect our products from competitor products; market acceptance of QIAGEN's new products and the integration of acquired technologies and businesses. For further information, please refer to “Risk Factors” section of reports that QIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC). We undertake no obligation, and do not intend, to update these forward-looking statements as a result of new information or future events or developments unless and to the extent required by law. Sample to Insight 2 2019 Analyst & Investor Day
Significant progress on commitments to value creation via sales growth and efficiency gains Generating Achieving gains in strong growth in adjusted operating TEAM sales and income margin PHOTO adjusted EPS through efficiency initiatives Ensuring disciplined Making targeted capital allocation to investments into both support growth Sample to Insight and increase returns portfolio Sample to Insight 3 2019 Analyst & Investor Day
Scorecard on 2016-2020 targets 2016 – 2020 targets Results since 2016 2016 Building momentum • Accelerating growth • Moving into sales growth target range (excluding divestments and acquisitions) Net sales (~+7-9% CER CAGR Sample to Insight portfolio transforming QIAGEN: 2016-2020) • QuantiFERON-TB: On track for ~$300 million of sales in 2020 On track • Additions to portfolio: QIAstat-Dx, NeuMoDx and digital PCR platforms • Divestments: China portfolio (PCR and HPV), veterinary testing assay portfolio, third party instrument service portfolio 2016 Adjusted diluted EPS (≥+12% CER CAGR On track (excluding divestments and acquisitions since 2016) 2016-2020) On track Operating cash flow Strong trends, but expect to be below 2020 target (due to adverse tax environment and (~$600 million in 2020) higher working capital requirements in emerging countries and new product launches) Challenges Sample to Insight 4 2019 Analyst & Investor Day
2016-2020 targets: On track for sales growth and adjusted diluted EPS Net sales growth target Adjusted diluted EPS growth target In $ billions, at constant exchange rates to comparative year In $ per share, at constant exchange rates to comparative year 2016-2019 base trends: 2016-2019 base trends: ~+7% CER CAGR ~+12% CER CAGR ~3% of 2019 sales acquired $1.34 billion since 2016 $1.11 ~5% of ~5% of 2016 2016 Portfolio changes since end of 2016: sales adj. EPS + QIAstat-Dx • Acquisitions net neutral to divested divested 2019 adj. EPS due to launch + NeuMoDx (1) expenses + Digital PCR ~95% ~97% ~95% ~100% • Share repurchases offset adverse of base of base of base of base + OmicSoft / N-of-One tax environment and convertible - China portfolio notes dilution (higher share price) - Veterinary testing assay portfolio - Third-party instrument service 2016 2016 2019 2019 outlook outlook (1) QIAGEN has right to acquire remaining 80% stake in NeuMoDx until mid-2020 for ~$235 million and currently serves as non-U.S. distributor Sample to Insight 5 2019 Analyst & Investor Day
2019-2023 targets: Continuing our strong focus on sales growth and improving profitability Net sales growth target Adjusted diluted EPS growth target NEW NEW In $ billions, at constant exchange rates to comparative year In $ per share >+10% CER ~+8-9% CER CAGR CAGR ~$1.45-1.47 CER ~+7-8% CER $1.5 bn $1.34 +6% CER 2018 2019 2019-2023 2018 2019 2019-2023 outlook mid-term target (1) outlook mid-term target (2) (1) 2019-2023 mid-term sales target based on 2019 outlook at actual rates (anticipate ~3 percentage points of FX headwinds – As of April 30, 2019) (2) 2019-2023 mid-term adjusted diluted EPS target based on 2019 outlook at actual rates (anticipate ~$0.03-0.04 per share of FX headwinds – As of April 30, 2019) Sample to Insight 6 2019 Analyst & Investor Day
Strategy: Multiple levers to accelerate our performance and deliver greater shareholder value Expand leadership and leverage Sample to Insight portfolio opportunities Setting new 2019-2023 target for ~+8-9% CER sales growth CAGR (1) QIAGEN has a Deliver on multiple automation platform launches and growth initiatives strong financial Allocating resources to the most exciting growth opportunities foundation to support growth and increase Maintain sharp focus on operating efficiencies, setting a solid EPS target returns Setting new 2019-2023 target for ≥+ 10% CER adjusted diluted EPS CAGR (2) Continue disciplined capital allocation to support growth and increase returns Plan assumes to return >$400 million to shareholders between 2020 and 2023 (1) 2019-2023 mid-term sales target based on 2019 outlook at actual rates (anticipate ~3 percentage points of FX headwinds – As of April 30, 2019) (2) 2019-2023 mid-term adjusted diluted EPS target based on 2019 outlook at actual rates (anticipate ~$0.03-0.04 per share of FX headwinds – As of April 30, 2019) Sample to Insight 7 2019 Analyst & Investor Day
2023 targets: Deliver above-market sales growth driven by Sample to Insight portfolio Net sales growth target perspectives ~+8-9% CER At constant exchange rates to comparative year CAGR ~+7-8% CER Molecular Diagnostics: ~+9-10% CER CAGR ~55% $1.5 billion QuantiFERON ~$400 m in 2023 QIAstat-Dx >$150 m combined sales Molecular in 2023 (base case) NeuMoDx ~50% Diagnostics ~49% NGS solutions Life Sciences: ~+6-7% CER CAGR Leadership in Sample Technologies ~45% Revitalizing portfolio with digital PCR Life ~51% ~50% Sciences NGS solutions Human ID / Forensics 2018 2019 2019-2023 mid-term target (1) outlook (1) 2019-2023 mid-term sales target based on 2019 outlook at actual rates (anticipate ~3 percentage points of FX headwinds – As of April 30, 2019) Sample to Insight 8 2019 Analyst & Investor Day
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