nasdaq 18th investor program - qiagen · portfolio-4-w w w . q i a g e n . c o m revenues: 2005: $...

W W W . Q I A G E N . C O MW W W . Q I A G E N . C O M- 1 -

NASDAQ18th Investor Program

London, December 07, 2006

Roland SackersChief Financial Officer


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 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).

The following slides may contain certain summary information about QIAGEN N.V.’s operating income, net income, and earnings per share, which information is presented on a “non-GAAP financial measures”basis rather than in accordance with U.S. generally accepted accounting principles (“GAAP”). Please review QIAGEN’s recent press releases for information on the company’s operating income, net income, and earnings per share for specific periods presented on a GAAP basis. Such GAAP-basis information will also be contained in the company’s reports on Form 20-F and 6-K to be filed with or furnished to the U.S. Securities and Exchange Commission and which are available on QIAGEN’s homepage under www.QIAGEN.com.

Forward Looking Statements


As the innovative market and technology leader, QIAGEN creates indispensable solutions that set standards in enabling access to content from any biological sample.

Our mission is to enable our customers to achieve outstanding success and breakthroughs in research, applied markets, drug development and molecular diagnostics. We thereby make improvements in life possible.

Our commitment to the markets we serve drives our innovation and leadership in all areas where solutions such as sample collection, stabilization, separation, purification, storage, handling and processing are required.

The exceptional talent, skill and passion of our employees are key to QIAGEN’s excellence, success and value.

QIAGEN Mission 2006

MarketLeader

AttractiveMarkets

FocusedPortfolio


Revenues: 2005: $ 398 million 96–05 CAGR: 25%Net income: 2005: $ 69 million 96–05 CAGR 33%1

EPS: 2005: $ 0.46 96–05 CAGR: 31%1

Product Range:>500 consumable products to collect, separate, purify, stabilize, store, amplify target analytes in samples (DNA, RNA, proteins, etc.) Instrumentation for above consumablesMolecular diagnostics and research test kits

IP (12/05):409 issued patents, 321 pending patentsOver 500 patents under license

Customers >400,000 customers :Research: academia, industry (pharma/biotech)Applied Testing (vet., forensics, biodefense etc.)Molecular Diagnostics

Employees: >1.800 employees based in 19 subsidiaries1 excluding acquisition, restructuring and related charges as well as amortization on acquired IP

QIAGEN at a Glance


Sales Strength

CUSTOMER

Research

Pharma KAM

Clinical

MDX

Inside Sales

E-commerce

Forensic

QIAGEN: Standards which EnableAccess to the Content of Any Biological Sample

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001

Financials

Intro

Technology Leadership


Sales Strength

CUSTOMER

Research

Pharma KAM

Clinical

MDX

Inside Sales

E-commerce

Forensic

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001

Financials

QIAGEN: Standards which EnableAccess to the Content of Any Biological Sample Technology

Leadership



Sample & Assay Technologies

Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA,

Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages,

Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA,

Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines,

Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins,

Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars,

Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets,

Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins,

Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma

membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria,

Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic

acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils,

Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum

albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin,

Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids,

Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors,

Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...

Complexsample

DNAPure

Analyte

InformationAssay

Technologies

Target Dectected

Yes

No


High-TechDevice

Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA,

Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages,

Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA,

Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines,

Bradykines, Plasma membranes, Ribosomes, Actin, Vesicles, DNA, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins,

Microtubules, Mitochondria, Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars,

Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets,

Lymphocytes, Basophils, Eosinophils, Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, Hemaglobins, Heptaglobins,

Transferrin, Fibrinogen, Serum albumin, tRNA, Salts, Polymerases, Centrioles, DNA, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma

membranes, Ribosomes, Actin, Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria,

Mitochondrial nucleic acids, Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic

acids, Cofactors, Precursors, Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils,

Neutrophils, Megacaryocytes, Plasma, Clotting factors, Actin, Microfilaments, Serum, Fibrin, Lysosomes, Ezrin, DNA, Hemaglobins, Heptaglobins, Transferrin, Fibrinogen, Serum

albumin, tRNA, Salts, Polymerases, Centrioles, Immunoglobulins, Carrier proteins, Cytokines, Angiotensins, Chemokines, Bradykines, Plasma membranes, Ribosomes, Actin,

Vesicles, Complement components, Nuclei, Rough endoplasmatic reticulum, Nucleoli, Golgi apparatus, Glycoproteins, Microtubules, Mitochondria, Mitochondrial nucleic acids,

Vacuoles, Talin, Nucleolus, Polymerases, Ceramides, Chromosomes, Chromatin, mRNA, Cytoplasm, Leucocytes, Sugars, Lipids, Salts, Urea, Carbonic acids, Cofactors, Precursors,

Hemoglobins, Erythrocytes, Monocytes, Smooth endoplasmatic reticulum, Macrophages, Thrombocytes, Platelets, Lymphocytes, Basophils, Eosinophils, Neutrophils, Talin, ...


Any content

Enabling Access to the Content ofAny Biological Sample

AnyApplication

AnyBiologicalSample



QIAGEN Technology and Innovation Leader

Consumable Technologies

Standardized technologies addressing morethan 80 different applications

Engineering – Automation

Hardware design perfectionSoftware development platformsElectronic engineering – PDL systems

Comprehensive IP Estate

409 patents321 pending applicationsOver 500 patents under license

R&D

Approx. 10% of sales300 employees



Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001

Financials

Technology Leadership Sales Strength

CUSTOMER

Research

Pharma KAM

Clinical

MDX

Inside Sales

E-commerce

Forensic

QIAGEN has SignificantMarketing and Sales Power Sales Strength


Strong Sales and Marketing Force

Americas Approx 45% of Sales: Sales and Marketing Force: 258

Europe Approx 45% of SalesSales and Marketing Force: 365

Asia Approx 10% of SalesSales and Marketing Force: 186

~ 800 Sales and Marketing Professionals – One Clear and Focused Mission

MARKETS

Research

Pharma KAM

Biomedical

MDX

Inside Sales

E-commerce

Appl. Testing

SPECIALISTS

Channels

Sales Strength


QIAGEN –One of the Strongest Brands in the Industry

The QIAGEN name is synonymous withsuperior performanceinnovative productshighest quality and reliabilitytrust

QIAGEN built this powerful brand with hard workmarket and technology competencespirit of innovationpassion for qualityfriendliness & commitment to customers

The QIAGEN brand is one of its most valuable company assets - it helps to attract new customersenter new markets keep the ones we havesell new products obtain premium pricesincrease barriers of entries

QIAGEN: Sample Technology and Assay Competence

Sales Strength


ConsumablesReported growth 17%18% growth CER

Instruments7% growth CER13% growth CERin Q3 2006

Other (1%)

First Nine Months 2006 Revenue Distribution

Asia37% growth CER66% growth CERin Q3 2006(driven by China)

RoW (2%)

North America11% growthEurope

19% growth CER

90%

9%

CER = Constant exchange rates

Sales Strength

90%

9%

10%

43%

45%


Academia (approx. 40% of revenues)

QIAGEN’s home turf

Source of innovative products and technologies

Pharma/Biotech (approx. 25% of revenues)

Focus on biomedical research

Pharmacogenomics

Diagnostics (approx. 25% of revenues)

QIAGEN’s growth area

Addressing future opportunities:

panel approach in MDx and

active in many biomarker initiatives

Applied Testing (approx. 10% of revenues)

Today: Forensics

Tomorrow: Veterinarian, food testing

Focus on Growth – Momentum

Markets by Customer Groups

AppliedTesting

10%Research

40%

Pharma25%

25%

MolecularDiagnostics

Sales Strength


Sales Strength

CUSTOMER

Research

Pharma KAM

Clinical

MDX

Inside Sales

E-commerce

Forensic

Financials


QIAGEN is Addressing Key Growth MarketsGrowth Drivers

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001


Workflow in Life Sciences

CollectionStabilization

Identical Workflows in All Areas of Life SciencesApplied Testing

Molecular Diagnostics

Life Science Research

SamplePreparation

AssayTechnology

DetectionPlatform

Growth Drivers


Leveraging Core Competencies

Research Applied Testing Molecular Diagnostics

“Prepare Sample”

(Preanalytical Solutions)

“Make Analyte Visible”

(Assay/Test)

“Detect”Open detection platforms

Different Markets – Same Core Competence

“Detect”Open detection platforms

Growth Drivers


Disseminating Technologies Into New Markets

Life ScienceResearch Markets

Applied TestingMarkets

Molecular DiagnosticsMarkets

QIAGEN Sample and Assay Technologies

Common Core Addressing 3 Markets

Growth Drivers


Total Diagnostics Markets

Diagnostics is changing – we are in the right position.

Diabetes Care21%

ClinicalChemistry

14% Near PatientTesting

11%

Immunochemistry25%

Other IVD23%

Molecular Diagnostics 6%,$ 2 billion market

Source: company estimates for 2006, various industry research reports

Growth Drivers

Estimated market:> US$ 30 billion (2006)


QIAGEN – a Leader in Molecular Diagnostics

Estimated market:> US$ 2 billion (2006)Source: company estimates, various industry research reports

USD Sales inMolecular

Company Diagnostics

Roche 550Genprobe 300Bayer 120QIAGEN 115Digene 115Abbott 110Others

CepheidBiomerieuxBecton DickinsonCelera DxBeckmanInnogeneticsVeridexNanogenThird WaveExactetc.

QIAGEN is a Leading Player in Molecular Diagnostics

Source: company estimates, various industry research reports

Viral Infections39%

Non-Viral Infections12%

Genetic Testing13%

Oncology11%

Blood banksOthers25%

!

Growth Drivers


Molecular Diagnostics Growth Strategy

Multiple, Synergistic Channels – Focused Direct Sales Resources

Direct sales

OEM developmentOEM sales

Direct Sales

Growing direct sales force > 40

No instrument dependency

Focus on pathogens

Market leader in developing countries

OEM Products

Integrated solutions, CE and FDA

Assays, preanalytical, automation

> 15 Partners

>100 clinical trials using QIAGEN

> 50 clinical trials using PreAnalytiX

OEM development

Developing solutions for partners

Growth Drivers


2005LumiCyte,

Inc.

2005Nextal

Biotech-nologies

2005artus

GmbH

2005SuNyxGmbH

2005TianweiTimes

2005PG Biotech

Co. Ltd.

2006

2005Eppendorf

5-Prime

2005RNAture

QIAGEN’s M&A Strategy

Sta

ndar

diza

tion

of

Pre

anal

ytic

al S

ampl

e P

repa

ratio

n

Creating Preanalytical Solutions

for Systems B

iology

Disseminating Reach ofCore Capabilities

2006Gentra

Growth Drivers


Multiplexing Workflow Steps in Diagnostics


Providing a Complete Workflow for Our CustomersApplied Testing


Life Science Research

SamplePreparation

AssayTechnology

DetectionPlatform

Growth Drivers


Market leadership in preanalytical solutions

Technology leadership in preanalytical solutions

Expanding leadership in protein sample preparation

Complete portfolio for all markets and segments

Leadership in research markets with PCR and other bioassay technologies

Leading in assays in molecular diagnostics

QIAGEN 2006

Sample and Assay Technology Leadership

Growth Drivers

AssayTechnology

DetectionPlatform


SamplePreparation


Sales Strength

CUSTOMER

Research

Pharma KAM

Clinical

MDX

Inside Sales

E-commerce

Forensic

Growth Drivers

0

20.000

40.000

60.000

80.000

100.000

120.000

140.000

160.000

180.000

200.000

220.000

240.000

260.000

280.000

1993 1994 1995 1996 1997 1998 1999 2000 2001


QIAGEN Strong Financial Base – Exciting Model Financials

Financials


200

250

300

350

400

450

500

2001 2002 2003 2004 2005 2006E

QIAGEN Revenue Recognition 2001 – 2006E

5-year CAGR* = 13%

* CAGR 2001-2005

US$ millions

QIAGEN – Continuous Double Digit Revenue Growth Rates

Financials


QIAGEN Operating Margins 2001 – 2006E

QIAGEN – Strong Operating Margin Improvement

15

17

19

21

23

25

27

29

2001 2002 2003 2004 2005 2006E

% of revenues

26%-28%

All figures excluding acquisition, integration and relocation related charges as well as amortizationof acquired IP and equity-based compensation (SFAS 123R)

Financials


QIAGEN Net Income 2001 – 2006E

30

40

50

60

70

80

90

2001 2002 2003 2004 2005 2006E

5-year CAGR* = 24%

* CAGR 2001-2005

US$ millions

QIAGEN – Strong Earnings Engine

US$ 0.46EPS US$ 0.52-US$ 0.56

US$ 0.39US$ 0.32US$ 0.23US$ 0.25

All figures excluding acquisition, integration and relocation related charges as well as amortizationof acquired IP and equity-based compensation (SFAS 123R)

Financials


0.30Cash EPS2

exceeded0.400.36-0.39EPS, adj. (US$)3

In line26%25-27%Operating margin, adj.2exceeded340324-333Net sales

ReportedTarget1In US$ millions unless indicated

QIAGEN Well on Track to Achieve Full Year Guidance

QIAGEN First Nine Months 2006 at a Glance

1 based on quarterly guidance communicated by the company on May 9th

2 excluding acquisition, integration and relocation related charges as well as amortization ofacquired IP and equity-based compensation (SFAS 123R)

3 computed using net cash provided by operating activities divided by number of fully diluted shares

Financials


250

300

350

Revenues9M 2005*

Price Volume Newproducts

Acquisitions/Divestments

Exchangerates

Revenues9M 2006

0

Organic Growth 10%

~ 2%

~ 4%

~ 4%

~ 16%~ 7%

US$M

Organic Growth Drivers in the First Nine Months

Outperforming the IndustryAverage Organic Growth Rate of 5%* in Q3.

* Industry including.: Beckman, Bruker, Strategene, BioRad, Mettler, ABI, Affymetrix, Fisher, Walers, Thermo, Techne,Invitrogen, Sigma, QIAGEN, Millipore, Roche Applied Science, Tecan

Source: Company data, Analyst reports

Financials

~ 1%


68%

25%

17%

70%

26%

18%

Gross margin* Operating incomemargin*

Net income margin*

9M 2005

9M 2006

Gross margin driven by increasing high margin consumable business

* excluding acquisition, integration and relocation related charges as well as amortization ofacquired IP and equity-based compensation (SFAS 123R)

QIAGEN Margin DevelopmentDriving Profitability

+19%

+17%+23%

Financials


Free cash flow computed using cash from operations less capital expendituresCash EPS computed using cash from operations divided by number of fully diluted shares

Inventory Days: 148Receivables – DSO: 62

0.130.15Cash EPS in US$ per share

16.6315.98Free cash flow

(2.60)(7.67)Capital expenditures

19.2323.65Operating cash flow

(4.72)(3.61)Others0.03-Non cash items related to acquisitions6.287.90Depreciation & amortization

17.6419.36Net income

Q3 2005Q3 2006In US$ millions unless indicated

Cash Flow StatementFinancials


No Impact on Net Income or EPSDue to a Complete Natural Hedge

Currency Impact on Third Quarter Ratios

1 excluding acquisition, integration and relocation related charges as well as amortization ofacquired IP and equity-based compensation (SFAS 123R)

115.8117.9Net sales (US$ millions)

69%69%Gross margin1

0.140.14EPS, adj. in US$ per share1

19%19%Net income margin1

26%26%Operating income margin1

Constant Currency(Q3 2005 €/US$ 1.22)

Reported(€/US$ 1.27)

2006 Q32006 Q3


Executing on Plans – Expanding – Setting Standards

Summary

Strong first nine months 2006

Exceeded 9M revenue targets

EPS YTD 21% growth compared to 2005

Operating income margin (adj.) 26%

Well on track to achieve full year guidance

Strategic positioning and momentum strong


Applied testing

Focused on core competencies

Present in key markets directly (i.e. 2005/06 Asia expansion)

Strong growth engine

Developed: 53 new products in first nine months 2006,approx. 4-5% of sales from new products

Partnered: >50 academic, >50 commercial partnerships

Acquired:

Gentra Systems – Large volume sample preparation (Q2 06)

Genaco Biomedical Products – Multiplexing PCR-testing (Q4 06)

Summary

nasdaq 18th investor program - qiagen · portfolio-4-w w w . q i a g e n . c o m revenues: 2005: $...

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