Fourth Quarter and Year End 2001 Conference Call, February 20, 2002 Dr. Metin Colpan, Managing Director and CEO Peer M. Schatz, Managing Director and CFO
Forward Looking Statements 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 and genetic vaccination and gene therapy markets, competition, rapid or unexpected changes in technologies, fluctuations in demand for QIAGEN's products (including seasonal fluctuations), difficulties in successfully adapting QIAGEN s products to integrated solutions and producing such products, the ability of each of QIAGEN to identify and develop new products and to differentiate its products from competitors, and the integration of acquisitions of technologies and businesses. For further information, refer to the discussion in reports that QIAGEN has filed with the U.S. Securities and Exchange Commission (SEC). 2
Welcome to QIAGEN s Fourth Quarter and Year End 2001 Conference Call February 20, 2002 Conference Call Outline: - 20 min Presentation - 40 min Q&A session Due to time restrictions we would like to ask for only two questions per caller. 3
QIAGEN 2001 Revenues: 2001: $ 263.8 million 96 00 CAGR: 37% Net income: 2001: $ 36.5* million 96 00 CAGR: 47%* EPS: 2001: $ 0.25* 96 00 CAGR: 44%* Product range: Approx. 320 consumable products Instrumentation Increased range of in-licensed technologies IP: 238 issued patents, 235 pending patents Over 400 patents under license Customers: 400,000 scientists worldwide 4 (* excluding one-time charges related to the acquisition of Sawady Group of companies without considering any other impacts related to these acquisitions)
QIAGEN Core Competencies link into new LifeScience Areas Genomics Polyscience Kreatech Genicon Luminex Zeptosens Affymetrix Proteomics Polysciences Genicon Luminex 5 Cellomics Polysciences
Revenue breakdown of product launches in 2002 Approx. 70% of revenues coming from new introduced products will be within QIAGEN s core business Related Products: DNA/RNA purification, separation, and handling Zeptosens SensiChip Microarray Reader Luminex LiquiChip Suspension Array System Polysciences BioMagnetic Cell Separation 6
QIAGEN Fourth Quarter 2001 Q4 2001 Q4 2000 Growth Revenues ($ million) 71.2 58.6 22% currency adjusted 72.5 58.6 24% EBIT margin (%) 24.0 19.1 26% Operating Income ($ million) 17.1 11.2 53% Net Income ($ million) 10.9 6.3 73% EPS $ 0.08 $ 0.04 100% WA Number of Shares 145.9 145.2 Products (approx.) 320 280 14% 7
QIAGEN Full Year 2001 2001 2000 Growth Revenues ($ million) 263.8 216.8 22% currency adjusted 271.3 216.8 25% Operating Income ($ million) 53.5 36.5 47% adjusted 55.3* 41.9* 32% Net Income ($ million) 34.4 21.0 64% adjusted 36.2* 26.4* 37% EPS $ 0.24 / 0.25* $ 0.14 / 0.18* 39% WA Number of Shares 145.1 145.1 Employees (approx.) 1,557 1,309 19% Cash, Marketable Securities ($ million) 79.0 61.3 8 (* figures excluding one-time charges related to the acquisitions of Operon Technologies Inc and Sawady Group without considering any other impacts related to these acquisitions)
QIAGEN s Product Breakdown 2001 Synthetic DNA Consumables Others Instruments 3% 13% 13% 71% 9
QIAGEN Underlying Growth US$ million 80 70 60 50 40 30 20 Consumables +27% Others Synthetic DNA Instruments Consumables 10 10 0 Q4 2000 Q4 2001
Expanding EBIT margin QTD 80 70 60 31% COGS R&D S&M G&A EBIT US$ million 50 40 30 20 10 0 32% 9% 27.5% 12.5% 19% 10% 24% 11% 24% 11 Q4 2000 Q4 2001
2002 is a pretty normal year in terms of cumulative new product introductions 100 90 2001 pro forma excluding Q3/Q4 disruptions 2002 "as if" evenly launch of new products 2002 80 ~ 28% ~ 28% ~ 28% 70 ~ 28% 60 Q1 Q2 Q3 Q4 12
13 Highlights 2001 Integration of QIAGEN Operon Inc. (formerly Operon Technologies Inc.), acquired in June 2000 and commenced manufacturing activities at a new European Operon facility in Cologne, Germany Strategic alliance on ultra-high throughput sample and liquid handling automation with Zymark Corporation Launch of the first product of our PreAnalytiX joint venture with Becton Dickinson (NYSE: BDX): the PAXgene Blood RNA system Acquisition of Sawady Group of companies in Tokyo, Japan, a leading company supplying DNA products to the emerging Japanese Life Science markets DNA microarray technology agreements with Aventis and Bayer covering the Sensichip Workstation Strategic alliance on ultra-sensitive microarray labeling and detection technology with Genicon Sciences Agreement for multi-application labeling technology with Kreatech Biotechnology B.V. Strategic alliance on magnetic polymer bead technologies with Polysciences Inc. Alliance to develop and market next generation nucleic acid separation and purification products with Pall Corporation
Employees December 31, 2001 USA Ger UK F CH Aus JP NL Italy Total % Production 106 238 42 24 410 26% R&D 32 270 26 328 21% Sales 202 120 32 21 18 15 31 5 444 29% Marketing 77 49 3 1 2 5 1 138 9% Admin 95 99 5 6 14 1 12 4 1 237 15% Total 512 776 40 28 102 16 72 4 7 1557 100% 14
QIAGEN Financial Calendar 2002 May 06, 2002 Q1 2002 June 14, 2002 Annual General Meeting, Venlo August 05, 2002 Q2, First Half 2002 October 28, 2002 Q3 2002 15
Highlights 2002 Opening of the production facility in Germantown, Maryland January 2002 Launch BioMag Magnetic Cell Separation (Cells/DNA) Q1 2002 Launch Rneasy 96 for BioRobot 8000 Q1/Q2 2002 Launch SensiChip Microarray Reader System Q2 2002 Opening of the new buildings in Hilden, Germany July 2002 Launch Clinical BioRobot Generation Q3 2002 Launch Luminex LiquiChip Suspension Array System Q3 2002 16