Qiagen N : Transcript

QIAGEN

Q2 2022 RESULTS CALL TRANSCRIPT

July 28, 2022

Sample to Insight

Q2 2022 RESULTS CALL TRANSCRIPT:

OPER:	Hello and thank you for standing by. Welcome to our call to
	discuss results for the second quarter and first half of 2022. At this
	time, all participants are in a listen-only mode. Please note that
	this call is being recorded and will be made available on
	QIAGEN's website. I'd like to introduce your host, John Gilardi,
	Vice President of Corporate Communications and Investor
	Relations at QIAGEN. Please go ahead.

JOHN GILARDI:	Thank you, and welcome to our call. The speakers today are
	Thierry Bernard, our Chief Executive Officer, and Roland Sackers,
	our Chief Financial Officer. Also joining us is Phoebe Loh from the
	Investor Relations team.
	Please note that this call is being webcast live and will be
	archived on the investors section of our website at
	www.qiagen.com.
	Today, we will first have some remarks from Thierry and Roland,
	and then move into the Q&A session. A presentation with details
	on our performance is available on the IR section of our website,
	along with the quarterly release. We will not be showing the
	slides during this call.
	Before we begin, let me cover, as usual, our safe harbor
	statement. This conference call discussion and responses to your
	questions reflect the views of management as of today, July 28,
	2022.
	We will be making statements and providing responses to your
	questions that state our intentions, beliefs, expectations or
	predictions of the future. These constitute forward-looking
	statements for the purpose of the safe harbor provisions under
	the Private Securities Litigation Reform Act of 1995. These

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statements involve risks and uncertainties that could cause actual results to differ materially from those projected. QIAGEN disclaims any intention or obligation to revise any forward- looking statements.

For more information, please refer to our filings with the U.S. Securities and Exchange Commission, which are also available on our website.

We will also be referring to certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP. All references to EPS refer to diluted EPS.

1. reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measure is available in our second quarter press release as well as the presentation that are both available on our website.

I would like to now turn over the call to Thierry.

THIERRY BERNARD:	Thank you, John.
	Welcome to our conference call today and thank you to
	everyone for joining.
	We are pleased to report that our teams worldwide delivered
	solid results in the second quarter of 2022. We have again
	exceeded our outlook driven by strong double-digit sales
	growth at constant exchange rates from our non-COVID
	portfolio. In line with our guidance, our Five Pillars of Growth are
	making solid progress toward our 2022 goals.
	While the macro-landscape continues to change and present
	new challenges, we have confidence in the robustness of our
	company and our strategy.
	Our teams have been very proactive in shoring up our business
	to withstand these challenges. At the onset of COVID we began

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strengthening our supply and manufacturing infrastructure against various constraints.

This has helped to prepare us for the current environment of supply chain tightening and rising costs. We also began implementing alternative energy systems late last year at our German site. This will give us flexibility from now on with energy sourcing away from natural gas.

This foresight has served us well - as you can see in our continued delivery of strong results. We have been able to remain commercially and operationally agile during these changing times.

Now onto our key messages for today.

First, as mentioned, we exceeded the outlook set for net sales growth and adjusted EPS for Q2 2022.

Net sales for the second quarter of 2022 grew to 544 million dollars at constant exchange rates, a decline of 4% over the same period in 2021.

This result was driven by 10% CER growth in sales of our non- COVID products. At the same time, sales for COVID-19 related products decreased by 39% CER compared to the year ago period.

Adjusted diluted earnings per share in the second quarter were 53 cents CER, above the outlook for at least 46 cents.

Second, our teams continue to execute successfully on our goals to advance our portfolios, especially in our Five Pillars of Growth.

We have launched instrument upgrades such as the QIAstat-Dx Rise for syndromic testing in high-volume labs and continued to broaden menus. We have added the NeuModx HSV Quant Assay. Our installed bases, a key asset for future consumables,

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also continue to grow. QIAcuity digital PCR systems have now reached over 1,000 cumulative placements and QIAsymphony has passed over 3,000 placements. All of our Five Pillars of Growth are on track to achieve the sales targets we have set for full year 2022.

As a last message, we have increased our outlook for the full year 2022 as a result of our performance in the first half.

We now expect sales of at least 2.2 billion dollars for the full year 2022, with a reaffirmation of the goal for double-digit CER growth coming from our non-COVID portfolio. As for adjusted EPS, we now expect at least 2 dollars and 30 cents CER.

With this outlook we are taking into account the challenging macro environment, and maintaining a conservative view on COVID-19 testing demand for the year. As always we are ready to support COVID testing in case of any outbreaks in the future, but we are focused on executing on our core business to strengthen our foundation for sustainable growth.

Our strategy of focus and balance continues to be a cornerstone to how we operate particularly on our Five Pillars of Growth.

We will provide more details on the outlook later in this call.

I would like to now hand over to Roland for a financial update.

ROLAND SACKERS:	Thank you, Thierry.
	Hello everyone and thank you for joining this call to review our
	results for the second quarter and the upgraded outlook for
	2022.
	Let me begin by walking you through our sales and the results in
	more detail.

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