Tecan : Full Year Results 2020

Zurich, March 16 2021

Full Year Results 2020

ANALYST & MEDIA CONFERENCE CALL

Speakers

Dr. Achim von Leoprechting, CEO Tania Micki, CFO

Agenda

FINANCIAL AND OPERATING HIGHLIGHTS FINANCIAL RESULTS

OUTLOOK

QUESTIONS AND ANSWERS

Financial Highlights 2020

• • Extraordinary demand for COVID-19 related products

• • Surge in orders, with order entry up by 38.5% in LC and 33.9% in CHF; order backlog at record high

• • Sales growth of +18.7% in LC and +14.8% in CHF; acceleration in H2

• • Double-digit sales growth in in both business segments and almost all regions

• • Total recurring revenues at 43.6% of sales

• • Increase in reported EBITDA margin to 21.8% of sales; reported EBITDA up by 29.6%

• • Reported net profit increased by 41.7%; EPS at CHF 8.69

• • Operating cash flow more than doubled to CHF 208.3 million or over 28.5% of sales

Operating Highlights 2020

• • Health and safety of Tecan employees prioritized during the coronavirus pandemic

• • Global manufacturing and business operations secured for undisrupted support of customers

• • Responded to unprecedented shifts and surge in demand for specific product lines by securing supplies of materials and expanding production

• • Tecan's automation technology to enable scaled-up COVID-19 testing globally with existing and new partnerships

  • • New agreement with Thermo Fisher Scientific

• • Launch of DreamPrep™ NAP to simplify nucleic acid extraction

• • Good progress in key R&D programs in both business segments to prepare for launches in 2021 and 2022

CONTRIBUTIONS TO THE GLOBAL EFFORTS TO CONTAIN THE PANDEMIC NOT A COINCIDENCE

FROM VACCINE DEVELOPMENT TO CLINICAL TESTING

© BioNTech SE 2020, all rights reserved

• • Corporate strategy and core competencies provided the basis for fast and flexible response

  • • Application focus on genomics (PCR to NGS)

  • • Infectious disease testing is a well-established healthcare use

  • • Scaling up of workflows in regulated environments is at the heart of our business

  • • Available digital tools to help manage multiple systems

  • • Broad local presence to support our customers

• • Leveraging unique position with solutions from research to clinical diagnostics

• • Supporting virus research, sequencing for variants, vaccine development, viral RNA purification, PCR- based and serology testing …and more

WE ARE PASSIONATE ABOUT SUPPORTING AND EMPOWERING LABS AND DIAGNOSTIC COMPANIES

LIFE SCIENCES BUSINESS

PARTNERING BUSINESS

Supporting and equipping individual labs and lab chains to further scale up COVID-19 testingSupplying in vitro diagnostic companies with instruments, components and/or disposable pipette tips

Robotic Pipette Tips: a Seemingly Simple Product

FULLY AUTOMATED PRODUCTION LINES, PRECISE MOLDING, INLINE VISUAL QUALITY TESTING

• • In this unprecedented time, Tecan recognized its responsibility to enable the scale-up of diagnostic testing

• • Increase in global manufacturing capacity, resulting in a tripling of Tecan's worldwide pipette tip production

• • In October 2020, the U.S. Government awarded a USD 32.9 million (CHF 29.8 million) contract/grant to support equipping a U.S. pipette tip manufacturing facility; start of production expected in fall 2021

High Precision

Defined Airflow

Purity

For performance accuracy, injection molding of automation pipette tips requires:  minimal warping  clean and smooth surfaces and edgesAirflow in the pipette tips is critical for aspiration step:

Molecular Diagnostics requires high purity:

 property range of filter is close to production variance

 precisely defined filter position

 tested to ensure tips are free from human DNA, PCR inhibitors, RNase and DNase

Agenda

FINANCIAL AND OPERATING HIGHLIGHTS FINANCIAL RESULTS

OUTLOOK

QUESTIONS AND ANSWERS

2020 Order Entry and Sales Performance

ORDER ENTRY FY 2020

CHF (mio)

900 800 700 600 500

638.6

855.2

ORDER ENTRY 2020 VS. 2019

• • +33.9% in CHF and +38.5% in LC

• • Orders surged for product lines supporting the global fight against COVID-19 (instruments and consumables)

• • Significantly exceeded the sales realized (book-to-bill ratio 1.17)

• • H2 2020: +46.7% in CHF and +51.8% in LC

  2019

  2020

• • Order backlog reached a record level as at 31 Dec. 2020

SALES FY 2020

SALES FY 2020 VS. FY 2019

750

730.9

• • +14.8% in CHF, +18.7% in LC

700

CHF (mio)

650

636.8

600

SALES H2 2020 VS. H2 2019

• • +23.5% in CHF, +27.8% in LC

550

500

2019

2020

2020 Segment Sales

SALES

CHF (mio)

420 380 340 300 260 220

20192020

361.2

408.8

Life Sciences

Business

SALES IN LOCAL CURRENCY

Change in %

20 16 12 8 4 0

18.7%

Life Sciences

BusinessPartnering Business

18.8%

Partnering Business

LIFE SCIENCES BUSINESS:

FY • Sales +13.2% in CHF and +18.7% in LC

• • Strong demand for products supporting the COVID-19 response (automation workstations and pipette tips)

• • Other parts experienced slowdown (detection instruments, NGS reagents, LCMS sample prep consumables)

• • Order backlog growing at high double-digit rate

H2 •

Sales +20.4% in CHF and +26.2% in LC

PARTNERING BUSINESS:

FY

• • Sales up by 16.8% and 18.8% in LC

• • High demand for automation platforms, OEM components and pipette tips to support COVID-19 testing

• • Sales to customers exposed to other areas of routine diagnostics were adversely impacted

• • Order entry increased at substantially higher rate vs. sales

• H2 •

Sales +27.9% in CHF and 30.0% in LC

FY 2020 Regional Sales Development

EUROPE

• • Growth driven by Life Sciences Business with instruments and consumables for PCR-based COVID-19 testing

• • Sales of Partnering Business suffered from lower volumes in routine diagnostic testing

NORTH AMERICA

• • Both business segments delivering double-digit growth rates in LC

• • Sales in H2 up by +43.3% in LC, reflecting a surge in demand for COVID-19 related products

ASIA

• • Driven by double-digit growth rates in both business segments

• • China outpaced overall growth in Asia region; sales in China exceeded CHF 80 million

FY 2020 Gross Profit

GROSS PROFIT (% = % OF SALES)

CHF (mio)

360

GROSS PROFIT INCREASED TO CHF 354.9

354.9

320

• • CHF 57.6m or 19.4% above 2019

GROSS PROFIT MARGIN UP BY 190 BPS Main effects contributing:

• • (+) Product mix, despite a higher consumable contribution

  297.3

  280

  46.7%

  48.3%

  240

  48.6%

  200

• • (+) Price

• • (-) Underabsorption of service organization due to closed facilities and restricted access to labs

• • (-) Higher freight and logistics cost mainly due to less capacity available

• • (-) Exchange rate impact

2019

2020

FY 2020 Cost Structure

OPERATING EXPENSES (% = % OF SALES)233.9m

240

CHF (mio)

220

200

180

160

140

120

100

80

60

40

20

0

2019

General and administration

Research and development

Sales and marketing

OPERATING EXPENSES GREW LESS THAN SALES

• • Total operating expenses down by 90 bps, driven by economies of scale

• • Sales & Marketing increased slightly less than sales despitecontinued investments in market units

• • R&D increased less than sales

  • • Continued investments in innovation

  • • More newly capitalized R&D

  • • More gross R&D (CHF 78.5m or 10.7% of sales), including funding for new customer-specific OEM projects

• • G&A increased about in line with sales

(15.3%)

(9.3%)

(9.4%)

2020

FY 2020 Reported EBIT and EBITDA

EBIT AND EBITDA

CHF (mio)

160

140

120

100

80

60

40

88.7

EBIT

EBITDA

EBIT AND EBITDA MARGIN

%ofSales

22

159.1

21.8

20

18

16

14

12

10

13.9

EBIT

EBITDA

20192020

20192020

EBITDA GREW TO CHF 159.1M

• • CHF 36.3m or 29.6% above 2019

• • (+) Improved gross profit margin (+190 bps)

• • (+) More development costs were capitalized

• • (+) Adjustment of Swiss pension plan resulting in a one-time reduction of past service costs

• • (-) Exchange rate impact

EBIT REACHED CHF 121.4M

• • 32.7m or 36.9% above 2019

REPORTED EBITDA MARGIN GREW TO 21.8%

• • Improvement of 250 bps (22.5% of sales at constant FX)

EBIT MARGIN INCREASED TO 16.6%

FY 2020 Segment Profitability

EBIT (IN CHF MILLIONS)

80

78.2

CHF (mio)

70

60

50

40

30

20

10

0

Life Sciences

56.7

Business

EBIT MARGIN (% = % OF SALES)

%ofSales

20 18 16 14 12 10

15.1

Life Sciences

BusinessPartnering Business

18.3

Partnering Business

20192020

2019

2020

LIFE SCIENCES BUSINESS:

• • EBIT margin increased to 17.4%

• • Factors contributing include:

  • • (+) Volume effect

  • • (+) Margin contribution from consumables business

  • • (+) Lower net R&D expenses (higher capitalization)

PARTNERING BUSINESS:

• • EBIT margin reached 18.3%

• • Factors contributing include:

  • • (+) Volume effect

  • • (+) Product mix

FY 2020 Net Profit

NET PROFIT

110

NET PROFIT GREW MORE THAN EBIT

• • CHF 30.5m or 41.7% above 2019

103.7

CHF (mio)

100

90

80

70

60

50

40

30

54.5

2016

2017

NET PROFIT MARGIN INCREASED TO 14.2%

• • Main factor contributing:

  • • (+) EBIT up by CHF 32.7m

  • • (+) Improved financial result

  • • (-) Tax rate of 12.3% (2019: 11.6%)

2018

2019

2020

FY 2020 Basic Earnings per Share

BASIC EARNINGS PER SHARE

9

8.69

CHF/share

8

7

6

5

4

3

4.74

2016

2017

2018

2019

2020

EARNINGS PER SHARE INCREASED TO CHF 8.69

NUMBER OF SHARES OUTSTANDING: 12.0M (2019: 11.9M)

INCREASE IN THE DIVIDEND FROM CHF 2.20 TO CHF 2.30 PER SHARE TO BE PROPOSED TO ANNUAL GENERAL MEETING

DIVIDEND

(in CHF / share)

1.75

2.00

2.10

2.20

2.30*

* To be proposed to the shareholders at the Company's Annual General Meeting on April 13, 2021

FY 2020 Cash Flow

+208.3

-288.7

266.3

Cash at end of December 2019

-37.4

148.4

From Operations

From Investments

From Financing

Cash at end of December 2020

CASH FLOW FROM OPERATIONS OF CHF 208.3M (2019: CHF 98.8M)

•  Cash conversion of 28.5 % of sales (2019: 15.5%)

•  Days Sales Outstanding down to 42 days (2019: 45 days)

•  Includes CHF 37.7m for amortization & depreciation (2019: CHF 34.1m), thereof CHF 10.9m from IFRS 16, CHF 4.7m for PPA and CHF 11.1m from capitalized development costs (2019: CHF 8.6m)

INVESTMENTS OF CHF 288.7M (2019: CHF 99.1M), INCLUDING

•  CHF -15.3m on capitalized development costs (2019: CHF -12.4m)

•  CHF +17.9m from U.S. Government contract award (grant)

•  CHF -23.7m on PPE (2019: CHF -9.3m)

•  CHF -270.0m investments in time deposits (2019: CHF -50.0m), +4.6m sale of financial assets (Andrew Alliance)

CASH FLOW FROM FINANCING ACTIVITIES INCLUDES DIVIDEND PAYMENTS OF CHF 26.2M

NET LIQUIDITY2 INCREASED TO CHF 467.7M (JUNE 30, 2020: CHF 354.0M, DEC 31, 2019: 312.4M)

1 Includes translation differences of CHF 1.2m 2 Net Liquidity = cash and cash equivalents plus short-term time deposits minus bank liabilities and loans

FY 2020 Key Figures

2019	2020	Δ IN %
Order Entry (in CHF mio)	638.6	855.2	+33.9%
Sales (in CHF mio)	636.8	730.9	+14.8%
Sales in local currencies (in CHF mio)	615.7	730.9	+18.7%
Gross Profit (in CHF mio)	297.3	354.9	+19.4%
in % of sales	46.7%	48.6%
R&D (in CHF mio)	59.9	62.0	+3.7%
in % of sales	9.4%	8.5%
EBIT (in CHF mio)	88.7	121.4	+36.9%
in % of sales	13.9%	16.6%
EBITDA (in CHF mio)	122.8	159.1	+29.6%
In % of sales	19.3%	21.8%
Net profit (in CHF mio)	73.2	103.7	+41.7%
in % of sales	11.5%	14.2%
EPS (in CHF)	6.18	8.69	+40.6%
Return on net assets (RONA)	26%	47%
Net liquidity (1) (2) (in CHF mio)	312.4	467.7	+49.7%
Equity (2) (in CHF mio)	659.1	733.7	+11.3%
Cash Flow (operating) (in CHF mio)	98.8	208.3	+110.9%

• (1) Net Liquidity = cash and cash equivalents plus short-term time deposits minus bank liabilities and loans

• (2) As of Dec. 31

Agenda

FINANCIAL AND OPERATING HIGHLIGHTS FINANCIAL RESULTS

OUTLOOK

QUESTIONS AND ANSWERS

Life Sciences Business: Products Already Launched in 2021

NEW SOLUTIONS FOCUSED ON APPLICATION-SPECIFIC NEEDS - ADDITIONAL LAUNCHES ANTICIPATED

FLUENT MIX AND PIERCE WORKSTATION

• • End-to-end automation for whole blood pipetting in clinical environments

  THE FRIDA READER MODULE FOR FLUENT

  • • Expanding Tecan's cutting-edge portfolio of workflow automation solutions for genomics applications

• • Reliable mixing and piercing for consistent blood sampling

• • Collaboration with QIAGEN to optimize sample preparation for latent tuberculosis (TB) testing with the QuantiFERON-TB Gold Plus assay

• • Highly innovative UV-based quantification and purity measurements of nucleic acids in a hanging drop

• • Eliminating nucleic acid sample loss; ideal for low volume, high value samples

Partnering Business: Production Ramp Up and New Launches

PARTNER OF CHOICE TO THE IN-VITRO DIAGNOSTICS INDUSTRY

RAMP UP FOR PRODUCTS ALREADY IN SUPPLY PHASE

PS-10 Sample Prep System for flow cytometry	Tecan Cavro Air Displacement	Integrated analyzer using MALDI mass	New Tecan Synergence
applications for Sysmex Corporation	Pipettor (ADP)	spectrometry for The Binding Site	OEM systems

• • Rebound and recovery expected for routine diagnostic testing, e.g. in transfusion medicine or cancer diagnostics

• • Improved market situation for recent launches in non-COVID-19 application areas

• • Various new instruments incorporating Cavro ADP; substantial demand, also for near-patient testing systems

NEW LAUNCHES IN THE NEXT 12 MONTHS

• • A series of new instrument launches expected in 2021/2022

• • Projects cover Tecan's focus application areas including molecular diagnostics and protein analysis

• • Sales potential of individual projects ranging from single-digit to clear double-digit million amounts in Swiss francs per year

2021 Still Impacted by COVID-19

HOW LONG AND HOW MUCH THOUGH?

PCR-BASED COVID-19 TESTING IN THE US

60

(inmillionsoftestsperformed)

50

40

30

20

10

0

1

Cumulative Tests

2

3

4

H1: ~32m

5

55 58.4

• 6 7

8

9

10

11

2020

12

1 2 3e

H2: ~204m

~147m >60% of 2020

Source: The COVID Tracking Project, UBS COVID-19 Tracker

FACTORS IMPACTING COVID-19 TESTING IN 2021

• • Duration and magnitude of elevated levels of PCR-based testing for acute COVID-19 infections

  42.3 45.9

  • • Impact on continued build out of test infrastructure in different regions

  • • Impact on usage of consumables

• • Shift from acute testing to broad community testing to reopen schools and businesses

• • Role of PCR tests for confirmation of positive antigen tests and symptomatic negative cases

• • Role of sequencing for variant surveillance

  2021

• • Role of serology testing and T cell assays to determine immunity status

• • Role of low-plex / multiplex testing for flu and SARS CoV-2

24

Financial Outlook for 2021

SALES DEVELOPMENT

CHF (mio)

2015 2016 2017 2018 2019 2020 2021e

REPORTED EBITDA AND MARGIN

CHF (mio)

2015 2016 2017 2018 2019 2020 2021e

1 In local currencies (=LC); 2 Based on average FX rates of: 1.08 EUR/CHF and 0.90 USD/CHF

OUTLOOK 2021

• • Based on high order backlog and continued elevated demand, very strong business performance expected for H1

• • Demand trends for COVID-19-related products are subject to greater uncertainty in H2

• • Some recovery and more positive environment expected for areas negatively affected by the pandemic in 2020

• • Assumes that supply chains remain undisrupted and all production sites stay fully operational

SALES

• • Forecasting growth in local currencies in the mid single-digit to mid-teens percentage range

REPORTED EBITDA MARGIN

• • Reported EBITDA margin expected at least at the 2020 level of 21.8% of sales

• • Expectation based on revised forecasts for average FX rates, factoring in a negative currency impact

Tecan is Well-Positioned for 2021 and Beyond

STRENGTHENED POSITION AND BASIS FOR POST-PANDEMIC GROWTH

• • Tecan was well prepared to quickly re-focus capabilities on the fight against COVID-19

• • Year 2020 also illustrated resilience of business and confirmed the strategic priorities

• • Significant opportunity to build on experience and learnings and apply it to other health challenges like cancer, metabolic diseases and other infectious diseases

• • Important product launches in both business segments in 2021 and 2022; focus on core applications

• • Modular systems offering for complete solutions with selected reagents, consumables and software

• • Strong focus on employees, on talent and leadership development and on diversity and inclusion

• • Sustainability deeply embedded in corporate culture; continue to drive activities in different ESG areas

Contact and Events

NEXT EVENTS 2021

April 13: Annual Shareholder Meeting

August 18: Half Year Results 2021

CONTACT Martin Braendle

Senior Vice President, Corp. Communications & IR Phone: [phone]

Tecan - Who we are

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 automated workflow 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.

Australia [phone] Austria [phone] Belgium [phone] China [phone] France [phone] Germany [phone]

Italy [phone] Japan [phone] Netherlands [phone] Nordic [phone] Singapore [phone] Spain [phone]

Switzerland [phone] UK [phone] USA [phone] Other countries [phone]

Tecan Group Ltd. makes every effort to include accurate and up-to-date information, however, it is possible that omissions or errors might have occurred. Tecan Group Ltd. cannot, therefore, make any representations or warranties, expressed or implied, as to the accuracy or completeness of the information provided. Changes can be made at any time without notice. All mentioned trademarks are protected by law. For technical details and detailed procedures of the specifications provided please contact your Tecan representative. This may contain reference to applications and products which are not available in all markets. Please check with your local sales representative.

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