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Sample & Assay Technologies
UBS Global Life Sciences ConferenceRoland Sackers Chief Financial OfficerSeptember 19, 2012
Sample & Assay Technologies Forward looking statements
Safe Harbor Statement: Certain of the statements contained in this presentation may be considered forward-lookingstatements 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 toQIAGEN's products, markets, strategy or operating results, including without limitation its expected operating results, areforward-looking, such statements are based on current expectations and assumptions that involve a number ofuncertainties and risks. Such uncertainties and risks include, but are not limited to, risks associated with management ofgrowth and international operations (including the effects of currency fluctuations, regulatory processes and dependenceon logistics), variability of operating results and allocations between business segments, the commercial development ofmarkets for our products in applied testing, personalized healthcare, clinical research, proteomics, women's health/HPVtesting and nucleic acid-based molecular diagnostics; changing relationships with customers, suppliers and strategicpartners; competition; rapid or unexpected changes in technologies; fluctuations in demand for QIAGEN's products(including fluctuations due to general economic conditions, the level and timing of customers' funding, budgets and otherfactors); our ability to obtain regulatory approval of our products; difficulties in successfully adapting QIAGEN's products tointegrated solutions and producing such products; the ability of QIAGEN to identify and develop new products and todifferentiate and protect our products from competitors' products; market acceptance of QIAGEN's new products and theintegration of acquired technologies and businesses. For further information, please refer to the discussions in reports thatQIAGEN has filed with, or furnished to, the U.S. Securities and Exchange Commission (SEC).
Regulation G: Some of the slides in this presentation contain certain summary information about QIAGEN N.V.’s sales,gross profit, operating income, net income, and earnings per share, which information is presented on a “non-GAAPfinancial measures” basis rather than in accordance with U.S. generally accepted accounting principles (GAAP). Pleasereview QIAGEN’s press releases, which can be found in the Investor Relations section of QIAGEN’s webpage underwww.QIAGEN.com, for information on the Company’s operating income, net income, and earnings per share presented ona GAAP basis. Such GAAP-basis information will also be contained in the Company’s reports on Form 20-F or Form 6-K tobe filed with or furnished to the U.S. Securities and Exchange Commission.
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Sample & Assay Technologies
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Broad product offering with common purpose
From biological sample to clinical result
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SAMPLE Technologies ASSAY TechnologiesBIOLOGICAL SAMPLE
VALUABLE MOLECULAR
INFORMATION
Sample & Assay Technologies
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World leader in Sample & Assay Technologies
Enable access to molecular information Biological sample to digital result
> 500 core products Consumable kits and instruments
> 500,000 customers worldwide Molecular Diagnostics Applied Testing Pharma Academia
Innovative power ~2,500 patents
Healthy financial position Strong cash conversion Improving margins
2011 key figures (In $ millions)
Net sales 1,169 + 4% (CER)
Adjusted operating income 319.6 +4%
Adjusted net income 234.4 +5%
Employees ~3,900
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CER – Constant exchange rates
Sample & Assay Technologies
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Instruments
Products for use with kits Automating entire workflows Many detection technologies
Real-time PCR Pyrosequencing Isothermal amplification Hybrid capture
Consumables
> 500 core product groups Specialized kits with all
materials > 90% of products sold to
more than one customer class
85%15%
Comprehensive product range to support workflows
2011 net sales
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Sample & Assay Technologies
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Operating in attractive markets
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Applied Testing Pharma AcademiaMolecular Diagnostics
2011 sales($1,169.7 m)
~47%(Other MDx: ~32%)(U.S. HPV: ~15%)
~7% ~20% ~26%
Long-term growth opportunities +++ +++ ++ +Key customers Reference labs
Hospitals
Forensic labs
Industrial
Government agencies
Big Pharma
Specialty / Biotech
CROs
Government research
Academic and private labs
Highlights Personalized Healthcare
Virology
QuantiFERON
HPV
Forensics
Vet and food safety portfolio
GeneGlobe:Pathway analysis
Biomarkers
Trusted brand
Involvement with breakthroughs
Translational research
Sample & Assay Technologies
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Strategic initiatives to drive growth and innovation
Drive platform success Roll out QIAsymphony worldwide Advance QIAensemble strategy
Leverage leadership in Sample & Assay Technologies
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Add content New tests across all customer classes
Broaden geographic presence Target high-growth emerging markets
Grow efficiently and effectively Sustained growth and improved profitability Leverage synergies across customer classes Best-in-class team and work environment
Molecular Diagnostics
Applied Testing
Pharma
Academia
Sample & Assay Technologies Focusing on multiple growth drivers
Investing in rapid growth Profiling: Molecular testing of active diseases QuantiFERON-TB: New standard for latent TB PHC: Leadership in companion diagnostics AmniSure: Critical end-of-pregnancy test
Maximizing value HPV: Leverage U.S. leadership, expand globally Strategic foundation for expansion
MDxgrowth drivers
Pharma
Academia
Applied Testing
HPV(U.S. 14%)
~30% of net sales+46% CER
~17% of net sales-6% CER
(Rest of world 4%)
~8% of net sales+26% CER
~20% of net sales+9% CER
~25% of net sales+2% CER
~47% of net sales+22% CER
Creating new opportunities Applied Testing: Forensics, food and vet testing Pharma: Gene-based R&D Academia: Translational medicine
H1 2012 sales: $603.6 million (+14% CER)
~53% of net sales+8% CER
Molecular Diagnostics
Life Sciences
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Sample & Assay Technologies QIAsymphony RGQ: New era of automation
Most versatile molecular testing system
On track for >200 new placements in 2012 End-2011 level: >550 systems Rising average consumables pull-through
Global rollout gaining momentum Component approvals in U.S. and China
Improving value proposition Software update in Q2 2012 Protocols for companion diagnostics
Development projects in all customer classes
QIAsymphony SP Automates sample prep
QIAsymphony AS Automates assay setup
Sample Result
Rotor-Gene Q Detection Analysis
QIAsymphony family
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QIAGEN addressing needs for lab automation and integration
Sample & Assay Technologies Adding content to QIAGEN portfolio
Selected regulatory projects Type Status
Rotor-Gene Q MDx Real-time PCR thermocycler instrument 510(k)
artus Influenza A/B Influenza test for use on Rotor-Gene Q MDx 510(k)
therascreen KRAS (Erbitux) Companion diagnostic for Erbitux in metastatic colorectal cancer PMA
therascreen KRAS (Vectibix) Companion diagnostic for Vectibix in metastatic colorectal cancer PMA Submitted H2 2011
careHPV Low-cost HPV test for developing countries sFDA Submitted H2 2011
artus CT/NG Chlamydia (CT) and gonorrhea (GC) CE IVD Planned 2012 submission
artus CMV Cytomegalovirus (CMV) infections in transplant patients PMA Planned 2012
submission
QuantiFERON CMV Cytomegalovirus (CMV) infections in transplant patients 510(k) Planned 2012
submission
therascreen EGFR Companion diagnostic in non-small cell lung cancer (NSCLC) PMA Planned 2012
submission
therascreen BRAF Biomarker test for melanoma CE IVD Planned 2012 submission
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Sample & Assay Technologies All stakeholders benefit from Personalized Healthcare
Payors Cost savings
Physicians Confidence in decisions
Patients Better medicines
Pharma companies Value creation
Providers of diagnostics New market opportunities
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Sample & Assay Technologies
Only FDA-approved KRAS test for use in metastatic CRC patients Erbitux now a first-line treatment
U.S. launch underway after July 2012 approval Drive commercial test adoption Campaigns targeting pathologists, oncologists and patients
Building portfolio on Rotor-Gene Q MDx Broadest range of companion diagnostics Automation with QIAsymphony Attractive economics to laboratories
FDA KRAS approval marks entry into attractive U.S. market
Sample & Assay Technologies Expanding lead in Personalized Healthcare
Milestone: U.S. approval of therascreen KRAS test
therascreenKRAS
positive
therascreenKRAS
negative
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Sample & Assay Technologies Leading co-development project portfolio
Selected Personalized Healthcare co-development projects
Project Partner Indication Biomarker Status
Eribitux (cetuximab)
Colorectalcancer KRAS Approved in July 2012
Vectibix (panitumumab)
Colorectalcancer KRAS Submitted U.S.
(PMA) in H2 2011
PF-00299804(dacomitinib)
Lung cancer(NSCLC) KRAS In development
Iressa (gefitnib)
Lung cancer(NSCLC) EGFR CE-IVD kit in Europe and
other non-U.S. markets
(afatinib)Lung cancer(NSCLC) EGFR U.S. submission planned
for 2012
Early-stage compound Blood cancer JAK2 In development
Not disclosed Confidential partners Oncology and non-oncology Various In development
Partner of choice: Industry-leading 15 projects under way
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Sample & Assay Technologies QuantiFERON TB-Gold: New global test standard
Latent TB testing required in developed countries
Single visit Higher cost per diagnostic test (~$20 / test)
But lower overall costs (One doctor visit, etc.)
High specificity: 99.2% No impact from TB vaccination (BCG)
Two visits required within 48–72 hours Lower cost per diagnostic test (~$5-10 / test)
But significant follow-up costs (Doctor visits, high false-positive rate, etc.)
Low specificity: 65.9% Not reliable for TB-vaccinated people
Tuberculosis Skin Test (TST)QuantiFERON-TB Gold
Publichealth
Employmentscreening
Communitylivingsurveillance
Immuno-suppressedpatients
Clinicaltrials
Treatment infoHIV Rheumatoid arthritisDiabetesRenal diseaseCancer
Correctional sitesPrisonsState / local jails
Medical staffHealthcare workersNursing homes Social workers
TB controlContact checksTB clinics
Patient selectionSafety dataEfficacy profile
Latent TB customer groups
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Sample & Assay Technologies Expanding geographic presence
Full-year 2011 net sales by region
Targeting expansion in Eastern Europe and Latin America
48%
34%
17%Asia-Pacific / Japan+8% CER
Europe / Middle East / Africa+7% CER
Americas+2% CER
Brazil Russia Future opportunityIndia 2011 direct entryChina South Korea Turkey Mexico
Top 7 emerging markets:12% of net sales / +21% CER
CER – Constant exchange ratesEMEA – Europe / Middle East / Africa
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Sample & Assay Technologies
QIAsymphony global rollout Test menu expansion
Companion diagnostics U.S. market approvals Translational medicine Applied Testing
High-growth markets
Freeing up resources to reinvest
Returning QIAGEN to a faster growth profile
Reallocate resources and personnel, selective reductions
Project planning Restructuring charge1
Implementing projects: R&D portfolio Manufacturing Pricing optimization Global procurement Organizational
excellence Restructuring charge1
Completed Ongoing
Efficiency gains(Q4 2011 – Q1 2012)
Operational improvements(Start: Q1 2012)P
hase
Topi
csS
tatu
s
Selected investments
2012 goal: Free up $50 million to reinvest in strategic initiatives
1 Restructuring charges of $75 million taken in Q4 2011 and $11 million in Q1 2012, further charges may be taken in 2012
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Sample & Assay Technologies
Gross margin+Site
consolidation- Product mix
+ Pricing strategy
+ Procurement
Levers to improve adjusted operating margin
Adjusted operating income margin overview
2011actual
27%(Q4: 29%)
2013target
>29%(Q4: >31%)
Gross margin
R&D
2012target
~27-28%(Q4: ~30%)
SG&A+ Sales models
+ Shared services
+ Procurement
+Streamlined portfolio
- Clinical trials
+ Procurement
- Product mixInstruments(QIAsymphony) HPV
- CDx deals
- Post-acquisition investments
+ Pricing strategy
SG&A+ Sales models
+ Shared services
+ Procurement
R&D
+Portfolio focus
+ Procurement
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Sample & Assay Technologies
Track record of growth and innovation
Robust development pipeline Strong free cash flow
World leader in Sample & Assay Technologies
Driving the dissemination of molecular testing
Key considerations: Strong growth potential
Attractive and growing markets
Building leadership in Molecular Diagnostics Highly competitive offering in Academia, Pharma and Applied Testing
Capitalizing on diverse growth opportunities
Pioneer in Personalized Healthcare Expansion into high-growth markets
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Sample & Assay Technologies
Thank you!
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