Press Release : Tecan reports significant growth -2-

the year to 12.9%. 
 
   In North America, sales grew by 24.9% in local currencies and 19.5% in 
Swiss francs in 2020, with both business segments delivering 
double-digit growth rates in local currencies. Sales in local currencies 
increased even by 43.3% in the second half of the year, reflecting a 
surge in demand for COVID-19 related products. 
 
   In Asia, Tecan recorded a significant increase in sales of 22.7% in 
local currencies and 17.5% in Swiss francs. This increase was driven by 
double-digit growth rates in both business segments. Growth in China 
outpaced that of the Asia region as a whole, bringing the total business 
in China to over CHF 80 million in the year. In the second half, sales 
in Asia increased by 20.8% in local currencies and 16.8% in Swiss 
francs. 
 
   Operating performance 2020 
 
   During the year 2020, the priorities were focused on ensuring the health 
and safety of Tecan employees, limiting any supply chain and freight 
interruptions and maintaining business continuity to support customers 
in these challenging times. Through the implementation of these measures, 
Tecan continued to be fully operational at all production sites and 
provided undisrupted support to customers. 
 
   With substantially increased COVID-19 clinical testing and high customer 
demand associated with the global pandemic, Tecan took a number of steps 
to secure supplies of materials and expand capacity and supply for 
specific product lines, including certain instrument platforms and 
disposable pipette tips. In October 2020, Tecan announced that the U.S. 
Department of Defense and the U.S. Department of Health and Human 
Services awarded a USD 32.9 million (CHF 29.8 million) contract to 
support equipping a U.S. pipette tip manufacturing facility for COVID-19 
testing. These payments had no impact on the statement of profit or 
loss. The new U.S. manufacturing lines are expected to start producing 
pipette tips in fall 2021, augmenting the steps Tecan has already taken 
to increase global manufacturing capacity at other locations. 
 
   Throughout the year 2020, Tecan was supporting its customers in research, 
therapeutic and vaccine development and with the scale-up of COVID-19 
diagnostic testing. Individual labs, major lab chains, newly built 
high-capacity testing facilities as well as diagnostics companies around 
the world were utilizing Tecan equipment and consumables to automate and 
scale up testing. 
 
   In August 2020, Tecan announced a new collaboration with Thermo Fisher 
Scientific to enable PCR-based COVID-19 testing with even higher 
throughputs to meet increasing global demand. The Thermo Fisher 
Scientific Amplitude Solution is a molecular diagnostic testing system 
designed to analyze up to 8,000 samples in a single day. The system 
includes instruments of Tecan's Fluent Laboratory Workstation family and 
the Introspect software, an instrument and consumables usage analysis 
and reporting software. 
 
   To further drive its comprehensive genomics strategy, Tecan launched the 
DreamPrep(TM) NAP at the beginning of 2020, an integrated, fully 
automated solution simplifying nucleic acid extraction workflows for 
many genomic applications. It combines the high productivity and 
precision of the Fluent automation platform with a Tecan reader for 
integrated quantitation and normalization. The DreamPrep NAP also helped 
labs quickly and effectively scale up COVID-19 testing to accommodate 
larger test volumes. 
 
   At the same time, Tecan continued to invest in research and development 
to position the business for sustained accelerated growth. Tecan also 
used new digital tools such as advanced 3D simulation to keep 
development projects on track despite restricted access to its own and 
customers' sites. With several projects nearing market launch, Tecan 
anticipates important product launches in both business segments in 2021 
and 2022. In the Life Sciences Business, new products are focused on the 
application-specific needs of research and clinical labs. In the 
Partnering Business, projects cover Tecan's focus application areas 
including molecular diagnostics and protein analysis, with sales 
potential of individual projects ranging from single-digit to clear 
double-digit million amounts in Swiss francs per year. 
 
   Strong balance sheet -- high equity ratio 
 
   Tecan's equity ratio reached 66.2% as of December 31, 2020 (December 31, 
2019: 70.1%). Net liquidity (cash and cash equivalents plus short-term 
time deposits minus bank liabilities and loans) reached CHF 467.7 
million (June 30, 2020: CHF 354.0 million; December 31, 2019: CHF 312.4 
million). 
 
   On the basis of the further increase of net profit in 2020 and an 
ongoing positive business perspective, the Board of Directors will 
propose at the Company's Annual General Meeting an increase in the 
dividend from CHF 2.20 to CHF 2.30 per share. Half of the dividend, i.e. 
CHF 1.15, will be paid out from the available capital contribution 
reserve and is therefore not subject to withholding tax. 
 
   Change on the Board of Directors 
 
   At the Annual General Meeting on April 17, 2021, Lars Holmqvist, a 
member of the Board of Directors since 2015, will not stand for 
re-election. The Board of Directors thanks Lars Holmqvist for his 
service over many years and his valuable contribution to the development 
of the company. Until the Annual General Meeting in 2022, the Board of 
Directors will consist of only six members. 
 
   Outlook 2021 
 
   Based on the high order backlog and continued elevated demand for 
instruments and consumables, Tecan expects a very strong business 
performance in the first half year 2021. Demand trends for 
COVID-19-related products are subject to greater uncertainty in the 
second half of 2021. Therefore, a decline in sales in the second half of 
2021 compared with the very high base of the prior-year period cannot be 
ruled out. On the other hand, particularly for the second half year, 
Tecan expects some recovery and a more positive market environment in 
areas that have been negatively affected by the pandemic, such as life 
science research, pharma and non-COVID-19 diagnostic testing. 
 
   Tecan therefore forecasts sales growth for the full year 2021 to be in 
the mid single-digit to mid-teens percentage range in local currencies. 
 
   These projections are based on the assumptions that supply chains remain 
undisrupted and all production sites stay fully operational. 
 
   Despite a more negative currency environment and the absence of 
extraordinary effects from 2020, the company expects a reported EBITDA 
margin for the full year 2021 at least at the 2020 level of 21.8% of 
sales. 
 
   The expectations regarding profitability are based on an average 
exchange rate forecast for full year 2021 of one euro equaling CHF 1.08 
(actual average exchange rate 2020: 1.07) and one US dollar equaling CHF 
0.90 (actual average exchange rate 2020: 0.94). 
 
   The outlook 2021 does not take account of potential acquisitions during 
the course of the year. 
 
   Financial Report and Webcast 
 
   The full 2020 Annual Report can be accessed on the company's website 
https://www.globenewswire.com/Tracker?data=LiJtfIHkpUXunUUjBoUrnQtB9uOB55bm7qe4AmaGWXjSS8b9_zkcwJ4WBjxp_ifBNwccg6AtxyBFfBrxBYYwMA== 
www.tecan.com under Investor Relations. 
 
   Tecan will hold an analyst and media conference to discuss the 2020 
annual results today at 09:00 (CET). The presentation will also be 
relayed by live audio webcast, which interested parties can access at 
www.tecan.com. A link to the webcast will be provided immediately prior 
to the event. 
 
   The dial-in numbers for the conference call are as follows: 
 
   For participants from Europe: [phone] or [phone] 
0613 (UK) 
 
   For participants from the US: [phone] 
 
   Participants should if possible dial in 15 minutes before the start of 
the event. 
 
   Key upcoming dates 
 
 
   -- The Annual General Meeting of Tecan's shareholders will take place on 
      April 13, 2021. 
 
   -- The 2021 Interim Report will be published on August 18, 2021. 
 
   About Tecan 
 
   Tecan (www.tecan.com) is a leading global provider of laboratory 
instruments and solutions in biopharmaceuticals, forensics and clinical 
diagnostics. The company specializes in the development, production and 
distribution of automation solutions for laboratories in the life 
sciences sector. Its clients include pharmaceutical and biotechnology 
companies, university research departments, forensic and diagnostic 
laboratories. As an original equipment manufacturer (OEM), Tecan is also 
a leader in developing and manufacturing OEM instruments and components 
that are then distributed by partner companies. Founded in Switzerland 
in 1980, the company has manufacturing, research and development sites 
in both Europe and North America and maintains a sales and service 
network in 52 countries. Registered shares of Tecan Group are traded on 
the SIX Swiss Exchange (TECN; ISIN CH0012100191). 
 
   For further information: 
 
   Tecan Group 
 
   Martin Braendle 
 
   Senior Vice President, Corporate Communications & IR 
 
   Tel. [phone] 
 
   Fax [phone] 
 
   [e-mail] 
 
   www.tecan.com 
 
   Attachment 
 
 
   -- Press Release with financial tables 
      https://ml-eu.globenewswire.com/Resource/Download/fa45afb9-a3b8-49ee-bd7c-73974619d29d

(END) Dow Jones Newswires

March 16, 2021 01:30 ET (05:30 GMT)