BERENBERG DIAGNOSTICS CONFERENCE
May 15, 2024
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.
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STRATEC AT A GLANCE
- Leading OEM player for automation solutions for the diagnostics industry and translational research
- Three decades of experience in highly regulated healthcare markets and growing technology pool
- Around 1.500 employees worldwide
- Around 50% allocable to R&D
- Production sites in Germany (HQ), Switzerland, Hungary,Austria and in the United States
- High number of systems installed globally
- Around 15,000 medium to high throughput systems
- Around 40,000 low throughput systems
- Sales of € 261.9 million in 2023
- CAGR sales since IPO in 1998: ~14%
- Sales split 2023:
- Systems 44%
- Service parts and consumables 37%
- Development and services 19%
SELECTED PRODUCTS
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CORPORATE SOCIAL RESPONSIBILITY
QUALITYENVIRONMENTAL
MANAGEMENT RESPONSIBILITY
Highest quality standards | Combat climate change |
- Established high-performance, Greenhouse gas reduction target1
certified quality management | in-line with Paris agreement | |
system | STRATEC reduced its total Scope 1 | |
| Ensuring consistently high | and 2 emissions by 57% since 2019 |
product quality | Unavoidable Scope 1 and 2 | |
| Strong audit track record | emissions fully compensated by |
(regarding inspections by | certified emission reduction | |
customers and regulatory | projects | |
authorities) |
SOCIAL RESPONSIBILITY
Secure diverse and inclusive work environment
- Strong policies and measures to promote an open, tolerant and discrimination-free corporate culture
- Extensive occupational health/safety policies and programs
Participant of the UN Global Compact: Further alignment of strategies and operations to the Ten Principles of the UN Global Compact on human rights, labor, environment and anti-corruption /SDGs
1 30% absolute reduction of scope 1 and 2 emissions by 2030 (versus 2019) | 4 |
UNIQUE POSITION WITHIN THE VALUE CHAIN
STRATEC provides instrumentation, consumables, software and automation solutions
- OEM development and manufacturing
- Around 10,000 fully automated analyzer systems manufactured annually
- Wide range of intellectual property rights / broad technology pool
Long market lifecycles lead to longstanding partnerships
- Product lifecycles for a system typically in an area of 12 to 15 years
- Expanding installed base of systems
- Product enhancement and extension drives value / Life cycle management
Long-term contractual setup
- Milestone payments during development stage (linked to agreed development budget and development targets)
- Operating sales during series production stage - minimum volume commitment by partner, firm transfer price)
- Recurring sales from service parts & consumables
- strong commitment by both partners
Shared responsibilities
Analyzer Market
Systems Access Partner
SoftwareReagents
Plastic
Consumables
Indicative revenue characteristics of an analyzer OEM project
Development and market launch of successor product
2 to 4 years | 12 to 15 years | Another 5 years |
Marketing phase of the analyzer system | ||
development | of service parts | |
phase | Service part & consumables | & consumables |
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ACTIVE IN FAST GROWING SEGMENTS
IVD MARKET SEGMENTS / IVD MARKET: ~100 BILLION USD
Focus on market segments with above average complexity and growth
Molecular Diagnostics
- Random access analyser systems (mid-to-high throughput)
- Smart consumables (multiplexing)
- POC devices (multiplexing) with smart consumables
Immunoassay
- Random access analyzer systems (mid-to-high throughput)
- Classic plastic consumables
- Smart consumables
Hematology & other routine testing
- Decentralized testing solutions
- Veterinary diagnostics
- Plastics
Further specialities / focus areas
- Immunohematology
- Complex Sample Processing
- Tissue Diagnostics
- Translational Research
IVD market by technologies
IVD market by product group
Source: MarketsandMarkets Research; own estimates | 6 |
BENEFITTING FROM OUTSOURCING TREND
OUTSOURCED VS IN HOUSE INSTRUMENTATION MARKET
The majority of instrumentation equipment in the IVD market is still developed in-house by diagnostics companies.
Share of outsourced developments has already increased significantly over the last couple of years.
Trend of outsourcing towards specialized players set to continue, due to:
- Engineering of automation solutions often not core competence of diagnostics companies
- Shorter development timeframes due to already existent technology pools
- Guaranteed project budget and firm transfer prices
- Keeping up with regulatory developments easier for specialized players
- Structured processes in order to address end customer needs, such as ease of use, user experience, workflow efficiencies, remote access, serviceability and preventive maintenance
Proportion of outsourced instrumentation developments over time | |
Ongoing paradigm shift even within | |
Past | the "blue chips" towards outsourcing |
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STRONG RECURRING REVENUE BASE
Service parts and consumables (37% of sales)
- Maintenance parts
- Spare parts
- Classic plastic consumables (eg. Pipetting tips, reaction vessels)
- Smart consumables (highly complex cartridges; microfluidics, molding, mastering and coating technologies)
Fueled by growing installed base and increasing complexity
- Continuously growing number of active systems in the lab
- Strong upward trend in the average complexity of systems
Installed base1 | Installed base1 | ||||||||
STRATEC Instrumentation | Diatron | ||||||||
16,000 | 15,139 | 42,000 | 39,772 | ||||||
15,000 | 14,612 | 15,134 | 40,000 | 39,061 | |||||
14,000 | 13,898 | 38,000 | 37,008 | ||||||
36,000 | 35,340 | ||||||||
13,000 | 34,000 | ||||||||
12,000 | 32,000 | ||||||||
2020 | 2021 | 2022 | 2023 | 2020 | 2021 | 2022 | 2023 |
Installed base (number of system)
1 Estimated with the assumption of an average six year replacement cycle in the lab
Smart consumables
SIMOATM 24-ASSAY DISC
Quanterix
VITEK® MS
Disposable target slide
bioMérieux
Sales split 2023
Service parts and
consumables
37%
Development and
Services
19%
Service and spare parts
Perestaltic Pump
STRATEC
Classic consumables
Stackable Cuvette
STRATEC
Systems
44%
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STRONG LONG-TERM CUSTOMER RELATIONSHIPS
A SELECTION OF STRATEC CUSTOMERS
Sales 2023 | ||
GLOBAL TOP 20 IVD COMPANIES | (USD billion) | |
1. | Roche | 14.2 |
2. | Abbott | 10.0 |
3. | Danaher | 9.6 |
4. | Siemens | 4.8 |
5. | Thermo Fisher | 4.4 |
6. | Becton Dickinson | 3.6 |
7. | bioMerieux | 3.3 |
8. | Sysmex | 3.1 |
9. | QuidelOrtho | 3.0 |
10. | Exact Sciences | 2.5 |
11. | Illumina | 2.2 |
12. | CH Werfen ( Inova, IL, Biokit) | 2.1 |
13. | Hologic | 1.8 |
14. | Bio-Rad Labs | 1.5 |
15. | Agilent Tech | 1.5 |
16. | Revvity (formerly PerkinElmer) | 1.5 |
17. | Shenzhen Mindray | 1.4 |
18. | DiaSorin | 1.2 |
19. | Natera | 1.0 |
20. | Qiagen | 1.0 |
… And other technology pioneers
STRATEC customer | Not a STRATEC customer |
Source: IVD News / non-public companies estimated / non-reported sector sales estimated
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FINANCIAL REVIEW
KEY FIGURES - TRACK RECORD
Sales | CAGR ~7% |
350 | |
287.3 |
Adjusted EBIT1 | CAGR ~3% |
60.0
54.3
300 | 274.6 | |
261.9 |
50.0
45.1
250.0 |
250 |
207.5 214.2
200 | 184.9 | 187.8 | |
150 | 144.9 | 146.9 | |
128 |
41.7 | ||||
40.0 | 36.4 | |||
32.3 | 29.3 | |||
30.0 | 26.9 | 26.2 | 27.1 | |
24.1 |
100 |
50 |
20.0
10.0
19.5
0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
in million €
0.0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
in million €
- Figures adjusted for comparison; adjusted for depreciation and amortization from purchase price allocation for acquisitions, related integration expenses and other extraordinary effects. Reconciliation to IFRS figures can be found in the respective annual report.
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Disclaimer
Stratec SE published this content on 14 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 May 2024 07:31:02 UTC.