Q4 2023 Qiagen NV Earnings Call

Operator: Please stand by; your conference is about to begin. Good day, I'm Melinda, your PGI call operator. Welcome and thank you for joining Qiagen's fourth quarter 2023 earnings conference call webcast. At this time, all participants are in a listen-only mode.

Please standby.

Your conference is about to begin.

Good day, I'm Melinda you're P. G I call operator, welcome and thank you for joining Qiagen <unk> fourth quarter 2023 earnings conference call webcast. At this time all participants are in a listen only mode. Please be advised that this call is being recorded at Qiagen request and will be made available on.

Operator: Please be advised that this call is being recorded at Qiagen's request and will be made available on their internet site. The prepared remarks will be followed by a question and answer session. If you'd like to ask a question, you may press the star key followed by one on your touchtone telephone. Please press the star key followed by zero for operator assistance.

And third at site.

The prepared remarks will be followed by a question and answer session. If you'd like to ask a question you May press star followed by one on your Touchtone telephone.

Please press the star key followed by zero for operator assistance.

John Gilardi: At this time, I'd like to introduce your host, John Gilardi, Vice President, Head of Corporate Communications and Investor Relations at Qiagen. Please go ahead. Thank you, Operator, and welcome to all of you today who are joining us on this call. We appreciate your interest in Qiagen. Our speakers today are Thierry Bernard, our Chief Executive Officer, and Roland Sackers, our Chief Financial Officer. We also have Phoebe Lowe from the IR team with us.

At this time I'd like to introduce your host John Callari, Vice President head of corporate Communications and Investor Relations at Qiagen. Please go ahead.

John Gilardi: Thank you operator and welcome to all of you today, who are joining us for this call. We appreciate your interest in Qiagen. Our speakers today are Terry Bernard our Chief Executive Officer, and Roland Christopher Chief Financial Officer, We also have Phoebe loh from the IR team with us.

John Gilardi: This call is being webcast live and will be archived on the investor section of our website at www.qiagen.com. You can also find a copy of the quarterly results press release in the presentation on our website. We'll begin with some remarks from Terry and Roland, followed by a Q&A session. But before we start, let me note that we are going to have an Analyst and Investor Day on Monday, June 17th in New York. An invitation to the event will be going out in the next few weeks, but please mark this on your calendars.

John Gilardi: This call is being webcast live and will be archived on the investors section of our website at Www Qiagen Dot Com you can also find the copy of the quarterly results press release and the presentation on our website, we'll begin with some remarks from Terry enrolling followed by a Q&A session. Before we start let me note that we are going to have an analyst and investor day.

John Gilardi: On Monday June 17th in New York and invitation to the event will be going out in next few weeks. So please mark the senior calendars.

John Gilardi: And also, before we start, let's briefly go over the Safe Harbor Statement. The views expressed during this conference call and the responses to your questions represent the perspectives of management as of today, February 7th, 2024. We will be making statements and providing responses to your questions that convey our intentions, beliefs, expectations, and predictions for the future. Such forward-looking statements fall under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

John Gilardi: And also before we start let's briefly go over the Safe Harbor statement. The views expressed during this conference call in response to your questions represent the perspectives of management as of today February seven 2024, we will be making statements providing responses to your questions that convey our intentions beliefs expectations or predictions for the future. These forward looking.

John Gilardi: Statements fall under the Safe Harbor provisions of the private Securities Litigation Reform Act of 1995.

John Gilardi: They involve risks and uncertainties, and actual results may differ materially from those suggested by these forward-looking statements. Factors that could influence results are mentioned in our filings with the U.S. Securities and Exchange Commission. These filings are available on the SBC website and also on our website.

John Gilardi: All risks and uncertainties and actual results may differ materially from those suggested by these forward looking statements.

John Gilardi: Factors that could influence our results are mentioned in our filings with the U S Securities and Exchange Commission.

John Gilardi: Files are these filings are available on the SEC website and also on our website qiagen disclaims any intention or obligation to update any forward looking statements.

John Gilardi: Qiagen disclaims any intention or obligation to update any forward-looking statement. Additionally, we will refer to certain financial measures not prepared following generally accepted accounting principles, or GAP. All references to EPS refer to diluted EPS. You can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in our press release and presentation. Now, I'd like to hand over the call to Thierry.

John Gilardi: We will refer to certain financial measures not prepared following generally accepted accounting principles or GAAP all references to EPS refer to diluted EPS you can find a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures in our press release and presentation.

John Gilardi: I'd like to hand over the call to Terry.

John Gilardi: Yeah.

Thierry Bernard: Thank you, John. Hello, and good morning, good afternoon, or good evening, depending on where you are in the world, and thank you once again for joining us. Thank you for your continuous interest in our company, Qiagen. We come to you today reporting another solid year and a strong performance in the fourth quarter. Amid the dynamic macro environment, our teams continue to execute, delivering solid sales and installed base growth. This is a further testament to how our strategy of balance and focus has positioned our portfolios well to expand our leadership in both life sciences and Molecular Diagnostics. Let me go through the key messages for today before we dive into the details.

Thierry Bernard: Thank you John Hello, and good morning, and good afternoon or good evening, depending on where you are in the world and thank you once again for joining us. Thank you for your continuous interest in our companion caveat right Rick.

Thierry Bernard: We come to you today, we're reporting another solid year and a strong performance in the fourth quarter.

Thierry Bernard: Amid the dynamic macro environment, our teams continued to execute delivering solid sales and installed base growth.

Thierry Bernard: He is a further testament to how our strategy of violence and focus I suppose you're showing our portfolios where to expand our leadership in both life Sciences and molecular diagnostic let's.

Speaker Change: Let me go through the key messages for today as we did we dive into the details.

Thierry Bernard: First, we exceeded our outlook for net sales and adjusted EPS for the fourth quarter and achieved our full-year outlook. Net sales for the fourth quarter were $503 million at CER, which exceeded our outlook for at least $500 million. Our non-COVID based business delivered one of the top performances in the industry with 8% CER sales growth over the prior fourth quarter. This was driven by ongoing strong demand for consumables that accounted for over 85% of total sales.

Speaker Change: First we exceeded our outlook for net sales and adjusted EPS for the fourth quarter and achieved our 40 year outlook.

Speaker Change: Net sales for the fourth quarter with $503 million at C E R, which exceeded our outlook for at least $500 million.

Speaker Change: Our non Covid based business delivered one of the top performances in the industry.

Speaker Change: 8% CER sales growth over the prior year fourth quarter.

Speaker Change: This was driven by ongoing strong demand for consumer votes that accounted for over 85% of total sales.

Thierry Bernard: Net sales for the full year were $9.97 billion at CER, and this was on point for our sales outlook for 2021. Our non-COVID cells also grew 8% CER for the year 2000 compared to the year 2020. Adjusted earnings per share for the fourth quarter were $0.55 CER, above the outlook for at least $0.53 CER.

Speaker Change: It says for the food, you're well $9 $97 billion I E. R. And this was one point for our sales outlook for two folds on them 20 <unk>.

Speaker Change: Our non Covid sales also grew 8% CER for the year of 2000 and compared.

Speaker Change: Compared with the year 2022.

Speaker Change: Adjusted earnings per share for the fourth quarter were 55 cents C E R.

Speaker Change: The outlook for at least 53 cents C E or for the full year adjusted diluted EPS were $2.09 C are under both the outlook for at least $2.07 C. R.

Thierry Bernard: For the full year, adjusted diluted EPS was $2.09 CER and above the outlook for at least $2.07 CER. Our second key message. Our teams executed well to deliver growth and build value in our portfolio, achieving some important milestones in our pillars of growth. First, sample technologies capped the year with 6% CER growth in non-COVID-related sales and over 1,500 new automation systems placed in the market in 2021. The quantiFERON latent TB test reached more than 400 million dollars in annual sales for the first time, and also had three consecutive quarters of sales above 100 million dollars during the year. The QIASTAT syndromic testing platform grew 7% CER in non-COVID cells for the full year 2023 and passed several key milestones.

Speaker Change: Our second key message.

Speaker Change: Our teams executed well to deliver growth and build value in our portfolio are achieving some important milestones in our pillars of growth.

Speaker Change: First sample technologies capped the year with 6% CER growth in non coffee to read the chipsets and over 15 100, new automation systems placed in the market in 2020 free.

Speaker Change: The quantified latent TB test reached more than $400 million on yourselves for the first time and.

Speaker Change: And also had three consecutive quarters of says ruble or hundreds of millions of dollars during the year.

Speaker Change: Okay, Yes that Syndromic testing platform grew 7% C E. R. In non coffee says for the full year of two falls and I'm 20, free and past Civil War key milestones.

Thierry Bernard: Over 1 million cartridges of QIAstat were shipped in 2023, driven by double-digit CER sales growth outside the U.S. Globally, full year sales of meningitis and GI, our gastrointestinal panel, doubled compared to 2020. In addition, the fourth quarter saw the highest number of quarterly placements for the year, bringing the total number of cumulative placements to over 4,000 systems. The Kayakuiti digital PCR system also performed well, delivering double-digit full-year cell growth at constant action rates and met the milestone of over 2,000 cumulative plasmids. Our third message.

Speaker Change: Over 1 million cartridge res of carrier starts were shipped in 2020 free and driven by double digit CER sales growth outside the U S.

Speaker Change: [noise] globally.

Speaker Change: What are your sales of meningitis and G I, our gastrointestinal panel doubled compared to 2022.

Speaker Change: In addition, the fourth quarter saw the highest number of quarterly placement for the year and bringing the total number of cumulative placement to over 4000 systems.

Speaker Change: Okay, Yeah created digital PCR system also performed well delivering double digit full year sales growth at constant exchange rates and met the milestone of over 2000 cumulative placements.

Speaker Change: Our field message.

Thierry Bernard: We again deliver a high level of profitability as we remain dedicated to investing in research and development. The adjusted operating income margin rose to 28% in the fourth quarter, even as we continue to invest in expanding menus and driving innovation in our portfolio, with about 9% of our sales going into research and development. And that will be our last point.

Speaker Change: We again delivered a high level of profitability.

Speaker Change: We remain dedicated to investing into research and development.

Speaker Change: Adjusted operating income margin rose to 28% in the fourth quarter, even as we continue to invest in expanding menus and driving innovation in our portfolio with about 9% of our sales going into research and development.

Speaker Change: And there were a last point, we have initiated 40 year 'twenty four outlook taking into account the volatile macro environment against the solid trends of our non COVID-19 business.

Thierry Bernard: We have initiated a full year 24 outlook, taking into account the volatile macro environment against the solid trends of our non-COVID business. For 2024, we have set an outlook for at least $2 billion of sales at CER and for adjusted APS of at least $2.10 CER again. Roland will give you more details on our outlook assumptions later in the course. Before I hand over to Roland, I would like to welcome our two new members to our supervisory board. In March, Eva van Pelt will be joining the board, bringing with her extensive experience in our industry. Most recently, she served as co-CEO of Eppendorf, a privately held German life science company, and before that, she held previous positions with Siemens, Accenture, Hitachi Data Systems, and Leica Microsystems.

Speaker Change: Our two fold in on 24, we have certain outlook for at least $2 billion Upsells at CER and for it just did a P. S. O about these $2.10 C, Oregon or don't read gives you more details on our outlook assumptions later in the quarter.

Speaker Change: Before I hand over to her at all I would like to welcome our two new members to our supervisory board in.

Speaker Change: In March evolve hadn't peds will be joining the board, bringing wizard and extensive experience in our industry.

Speaker Change: Most recently Eva served as co CEO of <unk>, a privately held German life Science company and before had previous suppose you shouldn't we Siemens Accenture Hitachi data systems and Leica Microsystems.

Thierry Bernard: A month later, in April, Bert von Moers will also be joining the board. Bert is currently a member of the executive committee at Royal Philips NV in the Netherlands, where he is leading their image guided therapy business, as well as the precision diagnosis business. We are pleased to have Bert's industry experience but also his knowledge of operating in the Netherlands. They will both be a very valuable addition to our diverse board, and we are looking forward to their contribution. Now I would like to hand over to Roland for a review of our results. Thank you, Thierry. Hello everyone.

Speaker Change: A month later in April both for most will also be joining the board.

Speaker Change: But he's currently a member of the Executive Committee at Royal Philips N V. In the Netherlands, where he is leading the email guided therapy business as well as the precision diagnosis business.

Speaker Change: We are pleased to have Brooks industry experience, but also his knowledge of operating in the Netherlands.

Speaker Change: They both will be a very very good about that you shouldn't you have a diverse board and we are looking for work to their contribution.

Speaker Change: Now I would like to hand over to Arnaud for a review of our results.

Arnaud: Thank you Teri Hello, everyone. Thank you Isabella for me for joining our call. Let me first discuss our results for the fourth quarter and the full year and then share some views on our outlook for 2024 as.

Roland Sackers: Thank you as well for joining our call. Let me first discuss our results for the fourth quarter and the full year and then share some views on our outlook for 2024. As you saw in our press release, net sales for the fourth quarter of 2023 were 509 million U.S. dollars, up 2% from the year-ago period, even against a substantial decline in COVID-19 revenues. We saw modestly positive currency movements against the US dollar, so this helped sales at actual rates. Consumables and related revenues led to performance rising 10% CER for non-COVID products. However, sales of instruments declined 2% CER for the non-COVID product groups in the fourth quarter of 2023, a signal of the conservative spending environment for capital sales.

Arnaud: As you saw in our press release net sales for the fourth quarter of 'twenty. Three were five 9 billion U S dollars up 2% from the year ago period, even against the substantial decline in COVID-19, or revenues you saw modestly positive currency movements against the U S. Dollar. So as this helped sales at actual rates.

Arnaud: Consumables and related revenues, let's say performance rising 10% see for non Covid product groups.

Arnaud: Sales of instruments declined 2% see off was a non corporate product groups in the fourth quarter of 'twenty three is.

Arnaud: A signal of a conservative spending of Ahmed for capital sales.

Roland Sackers: At the same time, we achieved some important milestones for placements, especially for QIAstat-TX and QIAcuity, as we continue to see good placement trends for reagent rental agreements with multi-year consumable contracts. Overall sales for the full year showed a decline of 8% against 22, reflecting the drop off in COVID-19 testing, while we delivered 8% CER growth in the non-COVID portfolio that represented over 90% of Looking at the non-COVID growth for the year at 8% CER, this included the strong performance from Quantiferum growing well above our target weight for at least 10% CER, while also having to absorb the volatility in our OM business. Taking out both of these factors, non-COVID sales were still up 7% CER in 23 over 22. Among our four product groups, the first is sample technologies, and this represents about one-third of total sales.

Arnaud: At the same time, whereas she has some important milestones for placements, especially for <unk> start to X and kayak surety as he continued to see good placement trends for which it went to agreements despite a year called yoga contracts.

Arnaud: Overall sales for the full year showed a decline of 8% against 22.

Arnaud: <unk> is a drop off in COVID-19 testing well have it delivered 8% see alcohol is a non covered portfolio that represented what 90% of total sales in 'twenty three.

Looking at the non corporate goal for the year at 8% see Yeah. This included a strong performance from quantify or God, well above our target rate for at least 10% CER, while also having to absorb the volatility.

Arnaud: Business.

Arnaud: Taking both of these factors non COVID-19 sales were still up 7% CER in 'twenty three or about 22.

Arnaud: All four product groups. So first the Sop to technologies. It just represents about one sort of thought that says for the non corporate product suite sales force at a mid single digit C. I'll wait for both Q4 'twenty three that's the full year or was it same period 22.

Roland Sackers: For the non-COVID products, these sales rose at a mid-single-digit CR rate for both Q4-23 and the full year over the same period in 2022. Our second product group, Diagnostic Solutions, also represents about one-third of sales and delivered mid-single-digit CER sales growth in 2013. Within this product group, the QuantiFERON TB test continued to capture growth from the conversion of tuberculin skin testing to modern blood testing and finished an outstanding year with 24% CAR growth over 22 and achieved more than $400 million for the first time, for the Kyostat DX system for endorhemic testing. Sales faced some headwinds from COVID-19 testing but saw underlying non-COVID sales rising at a solid single-digit Results for Neumodi-X, our integrated clinical PCR testing platform, also reflected the significant headwinds from the high level of revenues from COVID-19 testing in 2020. In the third group, which involves PCR, and nucleic acid amplification products, sales declined 1% CER in the fourth quarter.

Arnaud: Our second product group diagnostic solutions also represents about one third of sales.

Arnaud: Mid single digit C. All scared schoolfriend twenty-three, whereas in this product group so glad to fear on TB test continued to kept shuck wolf for conversion of Tuberculid skin testing to bought a blood testing and finished an outstanding year with 24% CER growth.

Arnaud: Oh about 'twenty, two and achieving more than $4 billion for the first stop.

Arnaud: Was it chaos that existed for the atomic testing C. It's faced some headwinds from COVID-19 testing, but so other like non Covid say, it's rising at a solid single digit C outlet.

Arnaud: Because that's for diabetics or integrated clinical PCR testing platform also reflected the significant headwinds from the high level of revenues from COVID-19 testing in 'twenty two.

Arnaud: It's a sad coupe, which involves P. C O nucleic acid amplification products sales declined 1% see out of the fourth quarter just for some much better is that the overall trend during the year with sales for 'twenty, three down more than 20% compared to 22.

Roland Sackers: This was much better than the overall trend during the year, with sales for 23 down more than 20% compared to 22%. As we have been mentioning, the reason for the sharp drop-off in sales in 2023 has been the volatility in orders from our OAM third-party customers that use our reagents for their own products. An important driver in the PCR nucleic acid product group is Ki-Acuity.

Arnaud: Yes, we have been mentioning so we froze a sharp drop off at the sales of 23 has speeds of volatility in orders from all that we have sought party customers that use our reagents for the old products.

Arnaud: An important driver of P. C hydrochloric acid product group is Kai acuity.

Roland Sackers: Our group of digital PCR platforms. Here we saw dynamic growth during 2023 as our teams exceeded the goal for at least 70 million US dollars of annual sales. This growth was driven by increasing consumables pulled through along with new placements, especially in the biopharma sector. Genomic NGS is our last product group.

Arnaud: Our group of digital PCR platforms.

Arnaud: We saw dynamic Ralph drove 23 is our teams exceeded the Gulf War at least $70 billion of annual says Cisco first driven by increasing consumer votes puts who along with new placements, especially in the biopharma sector.

Speaker Change: Sure I'll make it just it's a lost product called synthetic crudes archives of digital insight bioinformatics business. It's a chaos. He consumables portfolio designed for use with any third party next generation sequencer.

Roland Sackers: This includes our Qiagen Digital Inside Bioinformatics business and the QIA-C consumables portfolio, designed for use with any third-party next-generation sequencing. The QDI business had another solid performance in Q4 and for the full year, delivering double-digit CAR growth in 23 over 22. In terms of sales on a geographic basis, the Americas delivered mid-single-digit CER growth in the fourth quarter of 2023 in terms of total sales, with non-COVID product groups rising 9% CER over the fourth quarter of 2023. We also had a similar trend on a full-year basis, with sales for non-COVID product groups rising 10% CER over 22 on the back of solid growth in quantiferon The Europe-Middle East-Africa region grew at a double-digit CER pace for both the fourth quarter and the full year, when excluding COVID-19 had been. In terms of COVID-19 sales, the top performing countries for the fourth quarter included France, Germany, Italy, and the United Kingdom. In the Asia-Pacific-Japan region, sales in the fourth quarter were also affected by COVID-19 headwinds from 2022 They were also modestly lower over the year-ago period for the non-COVID polar group as well.

Speaker Change: Security I business had another solid performance in Q4 and for the full year delivering double digit CER growth in 'twenty three over 22.

Speaker Change: It jumps upsets on a geographic basis.

Speaker Change: Americas delivered mid single digit CAGR off of the fourth quarter of 'twenty three it drops off towards sits with non Covid Pollack whoops why is it not a sense see out what was the fourth quarter of 'twenty two.

Speaker Change: We also had a similar trend on a full year basis sales for non Covid product scoops why is it 10% CR or what 'twenty two what is it.

Speaker Change: Beck of solid coffee quite the field as well as our life science portfolio driven by car accurately.

Speaker Change: The Europe Middle East Africa region grew at a double digit CER pace for both the fourth quarter the full year, when excluding COVID-19 headwinds.

Speaker Change: Chopped off COVID-19 kids, it's a top performing it jumps off non COVID-19 sales of top performing countries for the fourth quarter included flawed, Germany, Italy, the United Kingdom.

Speaker Change: The Asia Pacific Japan region sits in the fourth quarter also affected by COVID-19 headwinds from 'twenty to see if the auto policy lower over the year ago period for the nonwoven product group as well.

Roland Sackers: This was due to the double-digit C, R sales decline in China, where macro-driven demand was weaker than expected in the fourth quarter. For the full year, Chinese sales declined at a low single-digit CR rate of over 22, but this was more than offset by higher sales in the rest of the region, especially South Korea and India. Let's now review the rest of the income stats. The fourth quarter adjusted operating income rose 6% to $142 million from the fourth quarter of 2022. And we also generated higher operating income on a reported basis over the year-ago period. This led to an adjusted operating income margin of 28% for the fourth quarter, up from 27.1% in the same period last year.

Speaker Change: This was due to the double digit CER sales decline in China.

Speaker Change: I could drive demand for us because it expected in the fourth quarter for the full year, China sales declined at a low single digit C. R weight or about 22, but this was more than offset by us yet the rest of the region, especially South Korea, India.

Speaker Change: It's no reviews, the rest of the income statement.

Speaker Change: For the fourth quarter, adjusted operating income rose, 6% to $142 billion for the fourth quarter of 'twenty two.

Speaker Change: We also get a way to tie our operating income on a reported basis over the year ago period. This led to an adjusted operating income margin of 28% for the fourth quarter up from 27, 1% in the same.

Speaker Change: Period of 'twenty two.

Roland Sackers: We delivered this improvement despite the adjusted cost margin failing to $65 million, 0.7% in the 23rd quarter, a decline of about 1.3 percentage points from the fourth quarter of 22.

Speaker Change: We delivered.

Speaker Change: This improvement despite adjusted cost margin failing to 65.

Speaker Change: Or 7% in the Twenty's suite quarter, a decline of about 1.3 percentage points for the fourth quarter of 'twenty. Two this was due to an adverse change in product mix as well as lower utilization levels for sub manufacturing capacity. So that we have built up to support new product launches, we expect the gross margin.

Roland Sackers: This was due to an adverse change in product mix, as well as low utilization levels for some manufacturing capacity that we have built up to support new product launches. We expect the gross margin to improve as we build up sales for this newer product. In terms of R&D expenses, these remained at a high level at 9% of sales and unchanged from the fourth quarter of 2022. This was also in line with our 2023 goal for investments at 9% to 10%. Sales and marketing expenses benefited from improvements in greater focus and efficiency in customer engagement, especially through digital channels. These expenses were 23.1% of sales in the fourth quarter of 2023, down about 1.4 percentage points from last year. General and administrative expenses were also less in the fourth quarter of 2022, falling to 5.6% of sales compared to 6.4% a year ago.

Speaker Change: To improve as we bid upsets at this new product.

It drops off R&D expenses.

Speaker Change: At a high level at 9% of sales unchanged from the fourth quarter of 'twenty. Two. So this was also in line with our 23 calls for investments at 9% to 10% right.

Speaker Change: That's a marketing expenses benefited from a.

Speaker Change: With a focus on efficiency and customer engagement, especially through digital channels.

Speaker Change: <unk> expenses were 23, 1% of sales for the fourth quarter of 'twenty three down about four percentage points from last year.

Speaker Change: General and administrative expenses were also less into the less certain in the fourth quarter of 'twenty, two falling to five 6% of sales compared to six 4% a year ago.

Speaker Change: For the full year. The adjusted operating income margin was 26, 5% of sales compared to Saudi 0.6% and 22 supporting our gains are high level of idea investments, while absorbing investments to commercialization.

Roland Sackers: For the full year, the adjusted operating income margin was 26.9% of sales compared to 30.6% in 2022, supporting again the high level of R&D investments while absorbing investments into commercialization. We also faced a lower adjusted cost margin for the year at 66.4% of sales compared to 67.7% in 2022, and again for the reasons outlined earlier. To close out the income statement, adjusted EPS for the fourth quarter was $0.55 at constant exchange rates and above the outlook for at least $0.53 CER. For the full year, adjusted EPS was $2.07 at actual rates, while results at constant exchange rates were $0.02 better at $2.09, due to some adverse currency trends against the U.S. dollar on a full-year basis.

Speaker Change: <unk> also faced lower adjusted gross margin for the year at 66, 4% of sales compared to 67, 7% in 'twenty two.

Speaker Change: Again for the reasons outlined earlier.

Speaker Change: To close out the income statement adjusted EPS for the fourth quarter was 55 cents at constant exchange rates at the buffs.

Speaker Change: Well at least 53 said C E L F.

Speaker Change: Full year, adjusted EPS was $2.07 that extra words, well results at constant exchange rates.

Speaker Change: <unk> said, it's better to do.

Speaker Change: At nine cents due to some adverse currency trends against U S dollar on a full year basis.

Speaker Change: As we have mentioned.

Speaker Change: Yeah.

Speaker Change: A key factor 23 was the non operating income benefits to interest income due to significant higher interest rate environment compared to trade it too.

Speaker Change: Turning to cash flow the treads in 23 reflects the lower levels of sales and net income compared to 22 as you move beyond the pandemic.

Speaker Change: Operating cash flow was 459 U S dollars for 'twenty three why free cash flow, we'll see about 10 million U S dollars.

Speaker Change: The impact of lower sales and profitability. We are at a period of Phi Abductor capital requirements. This is due to our decisions to maintain a relatively high level of inventories in light of the challenging geopolitical and macro environment you want to ensure that qiagen kept provide products for customers at all it's abroad with.

Roland Sackers: As we have mentioned earlier, a key factor on 23 was the non-operating income benefits to interest income due to the significantly higher interest rate environment compared to 22. Turning to cash flow, the trends in 2023 reflect lower levels of sales and net income compared to 2022 as we move beyond the pandemic. Operating cash flow was 459 million U.S. dollars for 2023, while free cash flow was 310 million U.S. dollars. Beyond the impact of lower sales and profitability, we are in a period of higher working capital requirements.

Speaker Change: Disruptions.

Speaker Change: This trend is also reflected the ongoing high levels of aiming towards the balance sheet.

Speaker Change: Martin Young this balance sheet, our liquidity position was about $1.1 billion. That's added up 23, and this compares to one $4 billion at the end of 'twenty to take.

Speaker Change: Taking into consideration the recent synthetic share repurchase, which you talked about $3 billion to qiagen share with us.

Roland Sackers: This is due to our decisions to maintain a relatively high level of inventories in light of the challenging geopolitical and macroeconomic environment. We want to ensure that Qiagen can provide products to customers around the world without disruption. This trend is also reflected in the ongoing high levels of inventories in the balance.

Speaker Change: What leverage ratio would be about one one times net debt to EBITDA compared to <unk> six times at the end of 'twenty three at five five times at the end of 'twenty two.

Speaker Change: Keep in mind for 24 said, we have about $6 billion of depth, reaching maturity of disputes at the habit disputes odd having repaid about $4 billion of debt due in 'twenty suite from existing cash reserves.

Roland Sackers: Continuing with the balance sheet, our liquidity position was about $1.1 billion at the end of 2023, and this compares to $1.4 billion at the end of 2022, taking into consideration the recent synthetic share pre-purchase, from which we returned about $300 million to Qiagen shareholders. Our leverage ratio would be about 1.1 times net debt to EBITDA compared to 0.6 times at the end of 2023 and 0.5 times at the end of 2022. Keep in mind, for 24, that we have about $600 million of debt reaching maturity, and this builds on having repaid about $400 million of debt during 23 from existing cash reserves.

Speaker Change: If you have other ways to deploy cash within our disciplined allocation strategy, which has proved its value over the last decade.

Speaker Change: Given our healthy balance sheet and strong cash flows we want to continue creating value by investing in totally into the business as we see with a lot of announcements about the multi year investment in psychiatry insert business as well as through targeted bolt on acquisitions that complement our portfolio.

Speaker Change: I would now like to hand back to you.

Speaker Change: Thank you all and now as usual please allow me to take a moment to go over some of the progress our teams have made in advancing our portfolio's.

Speaker Change: First of all we continue to build on our leading position in sample technologies with portfolio expansion and installed base growth.

Speaker Change: It is.

Speaker Change: Well, we have a clear focus on key growth areas, such as <unk> microbiome in liquid biopsy.

Speaker Change: In those areas.

Roland Sackers: We are reviewing other ways to deploy cash within our disciplined allocation strategy, which has proven its value over the last decade. Given our healthy balance sheet and strong cash flows, we want to continue creating value by investing internally into the business, as we see with our announcements about the multi-year investment in the Qiagen Digital Insight business, as well as through targeted, bolt-on acquisitions that complement our portfolio. I would now like to hand it back to Thierry.

Speaker Change: Deep expertise give us significant differentiation.

Speaker Change: This quarter as an example, we have again expanded our best in class microbiome portfolio with the launch of E. N E. Z poll will make soil pro kits for isolating it renamed from challenging soil samples reached in P. C. R inhibitors.

Speaker Change: Where do you I've heard companies in our industry talking about challenging trends in instrument demands our teams all over the world I've seen and made significant progress in the last year in placing new placed problems.

Thierry Bernard: Thank you, Roland. And now, as usual, please allow me to take a moment to go over some of the progress our teams have made in advancing our portfolio. First of all, we continue to build on our leading position in sample technologies with portfolio expansion and installed-based growth. It is here that we have a clear focus on key growth areas such as microbiome and liquid biome. In those areas, our deep expertise gives us a significant differential. This quarter, as an example, we have again expanded our best-in-class microbiome portfolio with the launch of the RNA-Z PowerMax Soil Pro Kit for isolating RNA from challenging soil samples rich in PCR inhibitors. While you have heard companies in our industry talking about challenging trends in instrument demands, our teams all over the world have still made significant progress in the last year in placing new platforms. By the end of 2023... There are now over 40,000 cumulative placements of the kayak tube family and over 5,700 cumulative placements of EZ-1 and EZ-2.

Speaker Change: End of two Falcon in 'twenty free.

Speaker Change: There are no over 40000 cumulative placement of the carrier cube family.

Speaker Change: And over 5007 hundred cumulative placements of easy one that needed to be.

Speaker Change: Both extremely popular solution for low throughput sample prep autonation.

Speaker Change: For higher throughput there are now over 3003 hundred cumulative placements of our flagship system the carriers seem funny.

Speaker Change: Oh, great for this platform is in development and we would include new onboard connectivity elements together with additional features to even better enable high demand high volume application such as liquid biopsy.

Speaker Change: In our diagnostic portfolio, we continue to see strong global expansion of our products, while also facilitating growth through partnerships.

Speaker Change: For example, you may have seen the recent announcement about what expansion in the Middle East. This includes an agreement for the quantified latent TB testing to be used in the old months newest screening program, where over 800000 people will be tested over a span of two years.

Thierry Bernard: Both extremely popular solutions for low-throughput sample prep automation. Ohio fruit, There are now over 3,300 cumulative placements of our FLAC-6 system, the Kaya Symphony. The upgrade for this platform is in development and will include new on-board connectivity elements together with additional features to even better enable high-demand, high-volume applications such as liquid biopsies. In our diagnostic portfolio, we continue to see strong global expansion of our products while also facilitating growth through partnership. For example, you may have seen the recent announcement of our expansion in the Middle East. This includes an agreement for quantiferon-latent TB testing to be used in Oman's new screening program, where over 800,000 people will be tested over a span of two years.

We present the healthy trends, we are seeing you need do you increase of global latent TB testing and the conversion from the old skin test to the modern blood based testing.

Speaker Change: We have also signed an agreement with the Ministry of Health in Saudi Arabia to support their public health and infection control initiatives.

Speaker Change: In addition to the development of them, yet new national latent TB screening programs using the quantitative on TB test. This includes a new fault to eliminate meningitis fruit or do graduate school programs using carrier agnostic platform.

Speaker Change: This represents a good example of how Syndromic testing is being employed more and more to detect meningitis. In fact, we saw the highest core studies says yet for the chaos that platform for a minute just in Q4 of 2023.

Speaker Change: And those are example.

Speaker Change: Our companion diagnostic program caveat, Jen and myriad genetics entered into a collaboration to provide next generation sequencing and digital PCR solution to pharma companies for the development of Casa of concept test.

Thierry Bernard: These represent the healthy trends we are seeing in the increase in global latent TB testing and the conversion from the old TB skin test to the modern blood base test. We have also signed an agreement with the Ministry of Health in Saudi Arabia to support their Public Health and Infection Control Initiative. In addition to the development of their new national latent TB screening program using the quantiferron TB test, this includes an effort to eliminate meningitis through the WHO program using the QIA-STAT diagnostic platform. This represents another good example of how syndromic testing is being employed more and more to detect meningitis. In fact, we saw the highest quarterly sales yet for the Kiastat platform for meningitis in Q4 of 2020. Here is another example.

Speaker Change: This adds to the over 50 active partnership we have we start by companies, where we are one of the only companies to a field development of assays based on all three modalities.

Speaker Change: P C R.

Speaker Change: Mixing nursing sequencing and digital PCR.

Speaker Change: In PCR and nucleic acid amplification, we have launched new kits and software updates for catch up with your digital PCR to expand capabilities in pharma, biopharma and food and drug safety.

Speaker Change: [noise] kits and show a precise quantification increased sensitivity and cost if essentially for application specifically used by these customers.

Speaker Change: While the software updates further equips accreted to be especially well suited for labs that must meet GMP standards by helping to automate the critical task of documentation for rebid for reporting and audit trails.

Thierry Bernard: Through our companion diagnostic program, Qiagen and Myriad Genetics entered into a collaboration to provide next-generation sequencing and digital PCR solutions to pharma companies for the development of cancer tests. This adds to the over 30 active partnerships we have with pharma companies where we are one of the only companies to offer the development of assays based on all three modalities. PCR, next-generation sequencing, and digital.

Speaker Change: Yeah next generation sequencing and genomics product group, we have recently entered into a new strategic partnership with element Biosciences, two O N. G. S worked through on their I V T system.

Speaker Change: These photos our strategy to offer a platform agnostic next generation sequencing consumable and bioinformatics solution.

Thierry Bernard: In PCR and nucleic acid amplification, we have launched new kits and software updates for QIAQ-UT digital PCR to expand capabilities in pharma, biopharma, and food and drug safety. The new kits ensure precise quantification, increase sensitivity, and cost efficiency for applications specifically used by these customers. The software update further equips Kayakwiti to be especially well-suited for labs that must meet GMP standards by helping to automate the critical tasks of documentation for reporting and audit trials. In our Next Generation Sequencing and Genomics Product Group, we have recently entered into a new strategic partnership with Element Biosciences to offer NGS workflow on their AVT system. This follows our strategy to offer platform-agnostic, next-generation sequencing consumables and bioinformatics solutions. In this way, Qiagen has been systematically partnering with sequencing platform providers to enable the use of Qiagen's QIASIC library prep kits and validated panels, as well as Qiagen digital insight solutions, on a very large range of sequencing instruments.

Speaker Change: In this way okay. Yeah, Dan has been systematically partnering we sequencing platform providers to enable to use of carrier James chaotic library prep kits and value that your partners as well as carry agenda digital insight solution on a very large range of sequencing instruments.

Speaker Change: With regards to where were huge yeah, yeah, well bio informatics business. We have made the decision to accelerate our own investments. We do good of expanding these leading portfolio into new geographic regions and market segments.

Speaker Change: This investment is planned over the next five years, and we support new product launches.

Speaker Change: And also why did you shouldnt really expansion of the knowledge base is that where does that put where we are with Q T. R E solutions.

Speaker Change: Also planning these programs is the extension of the use of artificial intelligence and augmented intelligence.

Speaker Change: Intelligence as well as new solutions for rapid and yes, I know you see some clinical labs.

Speaker Change: So as you can see we continue to build value in our portfolio. We started with a strategy that is leveraging our strong global footprint deep network.

Speaker Change: Innovation for weeks fifties, and now we're back to where it ought to give you more details on our outlook 24.

Speaker Change: Thank you tell you let me now provide more perspectives on our outlook for 'twenty for auto for the first quarter.

Thierry Bernard: With regard to our QDI, our bioinformatics business, we have made the decision to accelerate our own investments with the goal of expanding this leading portfolio into new geographic regions and market segments. This investment is planned over the next five years and will support new product launches and also additional expansion of the knowledge bases that are powering our QDI solution. Also planned in this program is the extension of the use of artificial intelligence and augmented molecular intelligence, as well as new solutions for rapid MGS analysis in clinical laboratories.

Speaker Change: As noted earlier, we have set the outlook for at least $2 billion of sales from 24 at constant exchange rates. This reflects towards the Gulf. It was at least 2% CER. It includes about one percentage point of headwinds as we well what comes of layoffs Coupe of COVID-19 sales from the <unk>.

Speaker Change: First quarter of 'twenty suite, just means that we are expecting at least 3% CER growth from the non covered portfolio.

Speaker Change: Trump's of how we see this year developing like others. We are anticipating a more muted start into the year because of a taught to solid mid single digit C. Outgrowth in the second half.

Thierry Bernard: So, as you can see, we continue to build value in our portfolio with a strategy that leverages our strong global footprint, deep network, and innovation through expertise. And now, back to Roland to give you more details on our Outlook 24. Thank you, Thierry.

Speaker Change: Additionally, we have closely monitoring dynamic macro trends at geopolitical risk across the globe as to how they could impact our industry.

Speaker Change: For China, we continue to take a cautious view and expect a modest single digit CR declining towards it for the full year. The environment is not showing any signs of improvement yet. It's the same time, there's just not a market to ignore all we continue to implement our two pronged strategy by Quebec, Quebec City.

Roland Sackers: Let me now provide more perspectives on our outlook for 2024 and also for the first quarter. As noted earlier, we have set an outlook for at least $2 billion of sales in 2024 at constant exchange rates. This reflects total growth of at least 2% CER and includes about 1 percentage point of headwinds as we overcome the last group of COVID-19 sales from the first quarter of 2022 just means that we're expecting at least 3% CAR growth from the non-COVID portfolio. In terms of how we see this year developing, like others, we are anticipating a more muted start to the year with a return to solid mid-sing Additionally, we are closely monitoring dynamic macro trends and geopolitical risk across the globe as to how they could impact our industry. For China, we continue to take a cautious view and expect a modest single-digit CR decline in total sales for the full year. The environment is not yet showing any signs of improvement.

Speaker Change: The qiagen branded portfolio directly as well as off like a local blood product in China.

If you take a step back from 24, our conviction for band strong about the midterm growth prospectus for Qiagen.

Speaker Change: Abacus that we self.

Speaker Change: This is a topic, we will address in our analyst and Investor Day planned for you in 17 in New York.

Speaker Change: The profitability, we have to sit on our outlook for adjusted EPS of at least $2.10 at constant exchange rates.

Speaker Change: But the adjusted operating income margin, we are planning for an improvement of at least one percentage point for the full year 'twenty four from the 20th suite.

Speaker Change: Level of 27 of sales, while continuing to invest in the business to support our business.

Speaker Change: This includes the investments into Q D. I business at 24 S. He planned to add more than 50, new positions launched a series of new products and expand our global presence. We see this multi year investments to helping to accelerate growth in this profitable business.

Roland Sackers: At the same time, this is not a market to ignore. We continue to implement our two-pronged strategy by commercializing the Qiagen-branded portfolio directly, as well as offering a local brand product in China. As we take a step back from 24, our convictions remain strong about the mid-term growth prospects for Qiagen in the market that we serve. This is a topic we will address at our analyst and investor day planned for June 17 in New York. In terms of profitability, we have set our outlook for adjusted EPS of at least $2.10 at constant exchange rates.

Speaker Change: We know what it is a quarterly report we anticipate significant pressure from nonoperating income and these factors represent about 10% of headwind for 24 results compared to 23.

Speaker Change: Adjusted net interest income is expected to be between 25 and $27 billion for 24 does this half the 23 levels of $55 million. The decline is due to the fact that we have lower cash on our balance sheet, along with expectations for a modestly lower interest rates.

Roland Sackers: For the Just Operating Income Margin, we are planning for an improvement of at least one percentage point for the full year 24 from the 23% level of 27 of sales while continuing to invest in the business to support our business. This includes investments into the QDI business in 2024 as we plan to add more than 50 new positions, launch a series of new products and expand our global presence. We see these multi-year investments helping to accelerate growth in this profitable business. As we noted in the quarterly report, we anticipate significant pressure from non-operating income, and these factors represent about 10 cents of headwind for 24 results compared to 26. First, Adjusted Net Interest Income is expected to be between $25 and $27 million in 2024. This is half the 23 levels of $55 million. The decline is due to the fact that we have lower cash on our balance sheet, along with expectations for modestly lower interest rates during the year compared to 2016.

Speaker Change: Two eggs a year compared to 23.

Speaker Change: The second factor involves all expectations for an adjusted tax rate for about 19% to 20% and 24 is up from 18% in 'twenty, we see increases due to higher profit chefs in higher tax jurisdictions as well as countries taking actions to implement the OECD initiatives the oldest pillar two.

Speaker Change: So Netherlands implemented at the end of 'twenty suite.

Speaker Change: As for currency movements based on rates as of January 31st we expect a neutral impact on full year net sales, but for an adverse impact of about one cents per share on adjusted EPS results.

Speaker Change: Moving to the first quarter our outlook is for net sales of about four four.

Speaker Change: About 55 billion U S. Dollar T. All keep in mind that this will be a period with significant COVID-19 sales in 'twenty suite.

Speaker Change: Adjusted earnings per share are expected to be at least 44 cents per share also let's see all I would like to know head back to tea.

Speaker Change: Well. Thank you all and we are getting now into the Q&A session. So let me provide you with a quick summary.

Roland Sackers: The second factor involves our expectations for an adjusted tax rate of about 19 to 20% in 2024. This is up from 18% in 2023. The increase is due to higher profit shares in higher tax jurisdictions, as well as countries taking actions to implement the OECD initiatives known as Pillar 2. The Netherlands implemented this at the end of 2023.

Speaker Change: First for me.

Speaker Change: The ongoing volatile microenvironment Qiagen has delivered it knows the quarter.

Speaker Change: Meeting or beating our outlook.

Speaker Change: We exceeded our outlook for the fourth quarter for both net sales and adjusted EPS. We also achieved our full year 2020 free says outlook driven by top tier growth in our non covered portfolio.

Roland Sackers: As for currency movements, and based on rates as of January 31st, we expect a neutral impact on full year net sales but an adverse impact of about 1 cent per share on adjusted EPS results. Moving to the first quarter, our outlook is for net sales of about 455 million US dollars CER. Keep in mind that this will be a period with significant COVID sales in 23. Adjusted earnings per share are expected to be at least 44 cents per share also at CER.

Speaker Change: Our performance in 2020 free definitely shows the relevance and power of our portfolios of solution to customers around the world and the impact of our strategy.

Speaker Change: Chicken.

Speaker Change: Through our two folds on in 'twenty three.

Speaker Change: Our teams all over the world continued to execute on our goals to build value in our portfolio meeting key milestones on sales growth and solid in store based expansion.

Speaker Change: This includes over 1500 sample preparation instrument over 700 scale that platform and over 700, Skyjack Ritchie newly placed in 2023.

Thierry Bernard: I would like to now hand it back to you. Well, thank you, Roland. And we are now getting into the Q&A session, so let me provide you with a quick summary. First,

Speaker Change: All fueling strong consumables growth going forward.

Thierry Bernard: Amid the ongoing volatile micro-environment, Qiagen has delivered another quarter of meeting or beating our expectations. We exceeded our outlook for the fourth quarter for both net sales and adjusted EPS. We also achieved our full-year 2023 sales target, driven by top-tier growth in our non-COVID portfolio. Our performance in 2023 definitely shows the relevance and power of our portfolios of solutions to customers around the world and the impact of our strategy. Take care, throughout 2023. Our teams all over the world continue to execute on our goals to build value in our portfolio, meeting key milestones on sales growth and solid install-based expansion. This includes over 1,500 sample preparation instruments, over 700 SCIA-STAT platforms, and over 700 SCIA QT new units placed in 2023, all fueling strong consumable growth going forward. I failed.

Speaker Change: Filled.

Speaker Change: We again delivered a high level of profitability, while also maintaining our commitment to disciplined capital deployment.

Speaker Change: As you saw with the ongoing high level of N G research and development investment into falls into 'twenty free Demerged your investment platinum toward our bioinformatics business and the $300 million recently returned to shareholders.

Speaker Change: And last we have announced an outlook for 2024 that demonstrates the strengths of our portfolio.

Speaker Change: Amid a challenging macro environment.

Speaker Change: Why do we fully acknowledge a shift in the first part of the you have two folds in 'twenty four.

Speaker Change: Just takes into account do more subdued market demand in the first half given the current condition such as lack of visibility on Finjan, Inc, and conservative spending in labs going into election year in too many countries.

Thierry Bernard: We again delivered a high level of profitability while also maintaining our commitment to disciplined capital deployment, as you saw with the ongoing high level of R&D research and development investment in 2023, the multi-year investment plan for our bioinformatics business, and the $300 million recently returned to shareholders. And last, we have announced an outlook for 2024 that demonstrates the strength of our portfolio amid a challenging macroenvironment, while we fully acknowledge a shift in the first part of the year 2024. This takes into account the more subdued market demand in the first half given the current conditions, such as lack of visibility on funding and conservative spending in labs going into election years in too many countries. But we expect a marked improvement as the year unfolds as we return to strong mid-single-digit CER sales growth for the second half of the year.

Speaker Change: But we expect a marked improvement as the year unfolds as we return to a strong mid single digit C E. Our sales growth.

Speaker Change: The second half of the year.

Speaker Change: We strongly believe that these sets of qiagen for solid mid term sales growth and improving profitability.

We are therefore, very well positioned to continue delivering a competing girl profiles in our industry.

Speaker Change: With that I now would like to hand back to John and GOP return for the Q&A session. Thank you all.

Speaker Change: Ladies and gentlemen at this time, we will begin the question and answer session anyone who wishes to ask a question May Press star followed by one on their Touchtone telephone if you wish to withdraw. Your question you May Press Star followed by Q2 inch.

John: Where we can accommodate as many people as possible. Please limit yourself to only one question and if necessary one follow up.

John: Your microphone well also be muted after finishing asking the question anyone who ask a question press star followed by one at this time.

Thierry Bernard: We strongly believe that this sets up Qiagen for solid mid-term sales growth and improved profitability. We are, therefore, very well positioned to continue delivering a compelling growth profile in our industry. With that, I now would like to hand it back to John and the operators for the Q&A session. Thank you all. Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press a star followed by one on their touchtone telephone. If you wish to withdraw your question, you may press the star followed by two. To ensure we can accommodate as many people as possible, please limit yourself to only one question and, if necessary, one follow-up. Your microphone will also be muted after finishing asking the question.

John: One moment for the first question please.

Speaker Change: The first question comes from Derik de Bruin.

Speaker Change: Bank of America. Please go ahead.

Speaker Change: Hi, Good morning, and thank you for good afternoon. Thank you for taking my question.

Speaker Change: Just curious can you elaborate a little bit more on the OEM headwind and sort of like how you see that coming through for 'twenty 'twenty four and what's there and I know you're going to have an analyst day in June but I think when you when you look at a more normalized market.

Speaker Change: Environment do you feel comfortable in sort of returning to a mid to high single digit consistently CER growth rate once markets normalize on a more basis. Thank you.

Speaker Change: Thank you Derek regarding first the OEM questions as you have always understood disease specific care business in our portfolio.

Operator: Anyone who has a question may press a star followed by one at this time. One moment for the first question, please. The first question comes from Derik DeBruin of Bank of America. Please go ahead. Hi, good morning, thank you for taking my question. Just curious, can you elaborate a little bit more on the OEM headwind and sort of like how you see that coming through for 2024? What's there?

Speaker Change: It's made on <unk>.

Speaker Change: Very large deliveries most of the time in book to a rather limited number of customers. So you have and we have always disclosed that to the market volatility T year on year.

Speaker Change: The average revenue pre COVID-19 for our OEM business was around.

Speaker Change: $80 million to $90 million.

Speaker Change: During COVID-19 it shot up to around $170 million.

Derik de Bruin: And I know you're going to have an analyst day in June, but I think when you look at a more normalized market environment, do you feel comfortable sort of returning to, you know, a mid to high single-digit consistently CER growth rate once the markets have normalized on a more basis? Thank you. Thank you, Derik. Regarding first the OEM questions, as you have always understood, this is a specific business in our portfolio. It's made on very large deliveries, most of the time in bulk, to a rather limited number of customers.

Speaker Change: We all know good thing getting back to normalization, but take into account that in 2020 free we achieved close to 100 million dollar with these business should we expect in 'twenty four headwind compared to compared to our normal performance overall and $15 million to $20 million.

Speaker Change: Yes.

Speaker Change: This should normalize as the year goes by.

Speaker Change: Those are starting in 'twenty five you should expect that business coming back to normally 70 $580 million year on year.

To your question is our growth profile.

Thierry Bernard: So you have, and we have always disclosed that to the market, volatility year on year. The average revenue pre-COVID for our OEM business was around 80 to 90 million dollars. During COVID, it showed up to around $170 million.

We believe that we are building systematically for the last five years, a strong view of carriers and we have the people we have the product portfolio to systematically grow above market growth, regardless of where that market growth ease. So even if the market is back to a let's say mid <unk>.

Thierry Bernard: We are now going back to normalization, but take into account that in 2023, we achieved close to $100 million with this business. So we expect in 2024 a headwind compared to our normal performance of around $15 to $20 million. This should normalize as the years go by.

D G growth profile, we will be there and we will be able to probably be slightly above that.

Otis: Our next question comes from Oh dishes Manistee Otis with bearing Baird. Please go ahead.

Speaker Change: Hi, Thanks for taking my questions are first of all this time last year. You mentioned you would be negotiating the renewal terms with DSR in for your corn different partnership.

Thierry Bernard: Further, starting in 2025, you should expect that business to come back to normally 75, 80 million dollars year-on-year. To answer your question about our growth profile, we believe that we have been building systematically for the last five years a stronger Qiagen. We have the people, and we have the product portfolio to systematically grow above market growth regardless of where that market growth is. So if the market is back to, let's say, a mid-single-digit growth profile, we will be there, and we will probably be slightly above that. Our next question comes from Odysseus Manasiotis with Berenberg.

Otis: Have these negotiations ended.

Speaker Change: Is it reasonable to assume you'll be getting slightly better financial terms of the results.

Speaker Change: And secondly, looking at the humid ex garden guidance. It seems youre expecting this one to outgrow most of your growth pillars. This year.

Speaker Change: Taking into account your commentary about instrument placements you didn't recover strongly in the near term what will drive that significant consumables pull through increased where these instruments. Thank you.

Speaker Change: Thank you your this shifts and are going directly to the second part of your question and then I will finish with quantitative on <unk>, it's not that the percentage of outgrow, yes. The percentage of growth is but it's starting from a lower base we starting.

Odysseus Manasiotis: Please go ahead. Hi, thanks for taking my questions. First of all, this time last year, you mentioned you would be negotiating renewal terms with DSR and for your quantifier and partnership. Have these negotiations ended?

Speaker Change: From slightly over 40 million and we go over 50 million are in our plan for 2024, why because as you have seen for example.

Odysseus Manasiotis: And is it reasonable to assume you'll be getting slightly better financial terms in the results? And secondly, looking at the new MODX guidance, it seems you're expecting this one to outgrow most of your growth pillars this year. Taking into account your commentary that instrument placements shouldn't recover strongly in the near term, what will drive that significant consumables pull through increase with these instruments? Thank you. Thank you, Odysseus, and going directly to the second part of your question, and then I will finish with quantifier on the new MODX. It's not that the percentage outgrows, yes, the percentage of growth is, but it's starting from a lower base. We are starting from slightly over 40 million, and we will go over 50 million in our plan for 2024. Why?

Speaker Change: We start two odd menu in the U S. You have seen the recent approval of our C. T. N Z. In addition to our capabilities on ADT Ts that gives a factor of growth second because we already have something like 330 platforms all over the world we have very significant menu.

Speaker Change: Village Availabilities in Europe should we expect the pull through on this installed base to grow and this is explaining our assumptions for four new bodies, but at the same time as you know this shows we have disclosed to the market that we are currently reviewing any kind of.

Speaker Change: Evolution for this portfolio for the new Skus in our portfolio and we'll come back to you in due time on the results of those evaluations.

Thierry Bernard: Because, as you have seen, for example, we are starting to add menu items in the U.S. You have seen the recent approval of our CTNG in addition to our capabilities on LDTs, that gives a factor of growth. It's significant because we already have something like 330 platforms all over the world. We have very significant menu availabilities in Europe, so we expect the pull through on this installed base to grow. And this is explaining our assumptions for Pneumodics.

Speaker Change: So I think we need to clarify.

Speaker Change: What we said since 2020 free ease that.

Speaker Change: Starting to focus on in 'twenty three in Europe.

Speaker Change: And 24.

Speaker Change: In the U S.

Speaker Change: <unk> is the possibility by contract.

Speaker Change: Odd who knows a partner.

Two gives you always dinosaurian.

Speaker Change: The situation at the moment is that as we have proven with our members.

Speaker Change: Destocking of sheep and he's exclusivity.

Thierry Bernard: But at the same time, as you know, Odysseus, we have disclosed to the market that we are currently reviewing any kind of evolution for this portfolio, for the Pneumodics within our portfolio. And we'll come back to you in due time with the results of those evaluations on diasterene. I think we need to clarify. What we said since 2023 is that, starting in 2023 in Europe and 24 in the U.S., Qiagen has the possibility, by contract, to add another partner, together with Diason. The situation at the moment is that, as we have proven with our numbers...

Speaker Change: We the serene works very well.

Speaker Change: Anytime we convert our customers to their serene, we are able to do it at a premium price.

Speaker Change: G Star no sheep, partially drives the performance that you have seen over the last three years for concert film.

Speaker Change: So at the moment why.

Speaker Change: Why do we always continue to review opportunities. We believe that this exclusive U T is justified and is generating positive results for both partners as.

Speaker Change: As far as the financials, we constantly.

Speaker Change: Work with their serene to optimize the financials for both parties.

Speaker Change: Very clear thank you our next.

Thierry Bernard: This partnership and this exclusivity with Daya Shorin works very well. Any time we convert a customer to diasterene, we are able to do it at a premium price. This partnership partially drives the performance that you have seen over the last three years for Quantum. So at the moment...

Speaker Change: Our next question comes from Casey Woodring with J P. Morgan. Please go ahead.

Speaker Change: Yeah.

Casey Woodring: Great. Thank you for taking my questions. So I was hoping that you guys could dig into the once you guide a little bit more you know rolling I think you said in the prepared you're assuming conditions are softer in the first half versus second half, but you just grew 8% non COVID-19 and for Qs, though it does seem to be at the top trend. Maybe can you just elaborate on maybe what you're expecting as an OEM.

Thierry Bernard: While we always continue to review opportunities, we believe that this exclusivity is very justified and is generating positive results for both parties. As far as the financials, we constantly... work with diethylene to optimize the financials. Provost Buster, Thank you. Thank you. You're very cute.

Casey Woodring: And why do you specifically.

Casey Woodring: And then just as a follow up curious on high acuity do you guys think youre.

Operator: Our next question comes from Casey Woodring with J.P. Morgan. Please go ahead. Great. Thank you for taking the time to answer my questions. So I was hoping that you guys could dig into the one-cue guide a little bit more, you know, Roland. I think you said the prepared you're assuming conditions are softer in the first half versus the second half, but you just grew 8% non-COVID in four cues. So it does seem to be a bit off trend. Maybe you could just elaborate on maybe what you're expecting as an OEM headwind in one cue specifically.

Casey Woodring: Taking share there and maybe can you split out the competitive share gains between pharma and academic.

Casey Woodring: Are you seeing particular strength in pharma or if it's more across the board.

Speaker Change: Yeah, I guess, a couple of effects here and I think the we clearly decided that you havent heard it from many other companies in our industry as well as the overall barco involvement in general, but clearly a Pacific I'll throw a couple of trends, which we have seen also modest floating up oh.

Speaker Change: A couple of weeks last few months.

Speaker Change: It's quite obvious but for capital expenditures, but particular for the bigger ticket and violent things right now are more difficult. We clearly see a sudden increase demand for weird should rentals, whereas it kept the sales environment is clearly a somewhat more difficult.

Casey Woodring: And then just as a follow-up question on ChiQuity, do you guys think you're taking share there? And maybe you can split out the competitive share gains between pharma and academics? If you're seeing particular strength in pharma, or if it's more across the board? Thank you.

Speaker Change: As I said before we believe that there's something about its was a boarder temporary side and we expect it to return to a more solid mid single digit trend over the course of the year. Nevertheless, it is not an easy environment specifically in the web I think we are somewhat down in the high single digit area I think some of it to eight and 10 million.

Roland Sackers: And I think we clearly cited, and you have heard that from many other companies in our industry as well, the overall Marco environment in general, but clearly Pacific also has a couple of trends which we have seen more or less folding up the last couple of weeks last month. Quite obvious for capital expenditures, particularly for the bigger ticket environment, things right now are more difficult. We clearly see a certain increased demand for reagent rentals, whereas the capital sales environment is clearly somewhat more difficult. However, as I said before, we believe that this is something that is rather more on the temporary side, and we expect to return to a more solid mid-single-digit trend over the course of the year. Nevertheless, it is not an easy environment.

The first quarter compared to the west compared to 'twenty, we are nevertheless.

Speaker Change: Also important to understand that I actually looked it up now for the years 2016 to actually including 2019 or more or less four years pre COVID-19.

Speaker Change: The drop in absolute revenues between the fourth quarter or the first quarter with all this phone about $50 billion plus would look very different.

Speaker Change: Our next question comes from Asia, nor of Morgan Stanley. Please go ahead.

Asia: Hello, Jamie underlying thanks for taking my questions.

Roland Sackers: Specifically in OM, I think we are somewhat down in a high single-digit area, I think somewhere between $8 and $10 million in the first quarter compared to the rest of the year, compared to 23. Nevertheless, it's also important to understand, and I actually looked it up now for the years 2016 to 2019, so more or less four years pre-COVID, the drop in absolute revenues between the fourth quarter and the first quarter was always about $50 million plus, so not very different. Our next question comes from Aisha Noor of Morgan Stanley. Please go ahead. Hello, Thierry and Roland.

Asia: Oh I'm.

Asia: I'm, sorry, I'm, sorry, I'm, sorry, I need to interrupt you were going to go back to your question. There was a second half of the question, which was on cash equity, which we did not answer yet so I'm going to take that one and then we go back immediately to your question is that okay.

Speaker Change: Good. Thank you so on carrier Cui cheap, yes, we do have you still your case he I'm sure.

Speaker Change: Sure with our numbers that we are taking share then we are taking market shares over competition why first of all because.

Speaker Change: Our technology different from the traditional droplet technologies is more cost efficient and lowest faster resort sicken, because if you remember we COVID-19 always fritzi fronting three months free kind of different throughput needs.

Aisha Noor: Thanks for taking my questions. Yeah, hold on. I'm sorry. I'm sorry.

Speaker Change: Low throughput one plate mill throughput formulates eighth throughput larger blades.

Operator: I need to interrupt you. We're going to go back to your question. But there was a second half of the question, which was about Kayakwiti, which we have not answered yet. So I'm going to take that one and we will go back immediately to your question. Is that okay?

Speaker Change: Fourth free Oh, sorry, because we have already developed a menu, which is covering application needed in academia, but also in the pharmacy also the pharma business sector D. C is definitely I will target main target for demand.

Operator: Very good. Thank you. So on Kayakwiti, yes, obviously, KC, we do show with our numbers that we are taking shares, and we are taking market shares over competition. Why?

Speaker Change: To come and this is why you have seen a constant improvement of our digital PCR menu over the last two years did you catch it to the pharma segment and false why do we believe so much into our digital PCR solution for the coming years as well is that not only can we leverage the growth of.

Thierry Bernard: First of all, because our technology, different from the traditional droplet technologies, is more cost efficient and allows faster results. Second, because, if you remember, we cover with three different instruments, three kinds of different throughput needs: low throughput, 1 plate, mid throughput, 4 plates, 8 throughput, larger plate.

Speaker Change: Those application in their lifestyle in this market, but as you know in 2024, we are going to make it a diagnostic clinical solution as well in the first half of 2020 for this platform will be F. G and H D are approved and in the second half of the year, we are planning to launch our first us.

Thierry Bernard: Four, three, sorry, because we have already developed a menu that covers applications needed in academia but also in the pharmacy, also the pharma business sector. This is definitely our target, our main target, for the months to come. And this is why you have seen a constant improvement in our digital PCR menu over the last two years, dedicated to the pharma segment. And fourth, why do we believe so much in our digital PCR solution for the coming years as well?

Speaker Change: Hey, Richard a tier four on Kuwait metrology application Pcr ABL.

Speaker Change: So how do we have said since the beginning of the launch of that solution. We believe that we have the team dedicated do solution to take the number one position in this market.

Speaker Change: Oh, Okay I can ask my question now.

Thierry Bernard: I think that not only can we leverage the growth of those applications in the life science market, but as you know, in 2024, we are going to make it a diagnostic and a clinical solution as well. In the first half of 2024, this platform will be FDA and IVDR approved. And in the second half of the year, we are planning to launch our first assay regulated for onco-hematology applications, BCRABL. So, as we have said since the beginning of the launch of that solution, we believe that we have the team dedicated to the solution to take the number one position on this market. Okay, I can ask my question now, if that's okay.

Speaker Change: Hey.

Speaker Change: If you could talk a little bit about China.

Speaker Change: And help us unpack the drivers of the weakness there my understanding was you had a softer comp in Q4 change me too because it's because of Lockdowns and from what your peers are saying this quarter. It sounds like a lot of the weakness is down to the life Sciences market, which I believe is about half of your China business. So could you clarify whether the China diagnostics business is also declining.

Speaker Change: Just trying to understand the market dynamics within the different customer segments.

Speaker Change: Thanks Rich.

Speaker Change: Thank you for your questions first of all just to highlight them.

Rich: Our life science business in China is more than half of our activities for this market.

Aisha Noor: If you could talk a little bit about China and help us unpack the drivers of the weakness there, my understanding was you had a softer comp in Q4 2022 because of the COVID lockdowns. And from what your peers are saying this quarter, it sounds like a lot of the weakness is down to the life sciences market, which I believe is about half your China business. So could you clarify whether the Chinese diagnostics business is also in decline this quarter? Just trying to understand the market dynamics within the different customer segments, so I'll leave it there first.

Speaker Change: And it is true that the life science a sector in in China are still not as bonds back from the Covid period.

Speaker Change: At the same time, we have constantly said that China is such a large market that it cannot be ignored. It is a specific market as well where you need to localize.

Speaker Change: Your activities. If you want to continue to be selected in many tenders, where the market is also some time affected by price constraints. It's what we call. The D. B P a pretty soon.

Speaker Change: In this regard we have always said.

Thierry Bernard: Thank you for your questions. First of all, just to highlight, our life science business in China is more than half of our activities in this market. And it is true that the life science sector in China is still not as bounced back from the COVID period. But at the same time, we have constantly said that China is such a large market that it cannot be ignored. It is a specific market as well, where you need to localize your activities if you want to continue to be selected in many tenders, where the market is also sometimes affected by price constraints. It's what we call the VBP policy.

Speaker Change: Consistently since 2022 that the market will come back very progressively and we were not expecting a return to growth at least before the end of 'twenty four.

Speaker Change: We believe that we are very well equipped.

Speaker Change: To take position in this market for three reasons.

Speaker Change: First of all the premium around of Qiagen.

Speaker Change: For the top tier of the.

Speaker Change: Labs in China.

Speaker Change: Taken because to localize our product.

Speaker Change: We have a research.

Speaker Change: Development and manufacturing operation sites.

Speaker Change: And food and he sees probably also very differentiated compared to competition because we have a second brand also in China fully owned by Qiagen, but operationally inside not independent from our carriers and activities. They have their own management Theyre all sales force and those are products do.

Thierry Bernard: In this regard, we have always said consistently since 2020 that the market will come back very progressively, and we were not expecting a return to growth at least before the end of 2024. We believe that we are very well equipped. You take a position in this market for three reasons. First of all, the premium brand of Qiagen for the top tier of the... Labs in China, taken because to localize our product. We have a research, Development, and Manufacturing Operations, PHI. And third, and this is probably also very differentiated compared to competition, because we have a second brand also in China, fully owned by Qiagen but operationally in China, independent from our Qiagen activities. They have their own management, their own sales force, and those are products developed in China, manufactured in China, and sold to Chinese. So, with those three assets... We believe that

Speaker Change: Developed in China manufactured in China, and sold to Chinese customers.

Speaker Change: So we used those free as it.

Speaker Change: We believe that.

Speaker Change: As I said before we can take position, but at the same time.

Speaker Change: We always insisted that if pre COVID-19.

Speaker Change: We weren't expecting a normal 10% growth year after year from the Chinese market.

Speaker Change: Covid.

Speaker Change: Progressively we will expect a mid single digit growth this will not come before 2025.

Speaker Change: Understood. Thanks, very much and then the second question was just on M&A.

Speaker Change: And your appetite to deploy capital from here given the recent share buyback program.

Speaker Change: Obviously M&A activity among your peers has also picked up in the recent quarter.

Thierry Bernard: As I said before, we can take a position, but at the same time, we always insisted that if pre-COVID, we were expecting a normal 10% growth year after year from the Chinese market post-COVID. Progressively, we will expect a mid-single-digit growth. This will not come before 2025. Understand. Thanks very much.

Speaker Change: And then just quickly if you could give us a call.

Traditionally for Virgin in 2023, just to help us out with our models. Thanks, so much.

So on M&A, we confirmed my worst ready sort of strategy you see that you know that we ever reach history, essentially especially of a bolt on acquisition.

Aisha Noor: And then the second question was just on M&A and your appetite to deploy capital from here, given the recent share buyback program. Obviously, M&A activity among your peers has also picked up in the recent quarter. And then, just quickly, if you could give us a number and a contribution from Verizon in 2023, just to help us out with our models. Thanks so much.

Speaker Change: Whereas we have always said that we don't want to do M&A for the sake of M&A, we want to do them and then not to spread the company fitting again.

Speaker Change: We are constantly working and looking at opportunities that fit in our current portfolio and the specialty would reinforce our pillars of growth. So it's a very focused M&A strategy.

Speaker Change: We have also said many times that we are looking at opportunities that could be during a short period of time that you choose to add to our P&L, but should be in a very visible timeframe accretive we always said that we'd give it normally wrong two years before becoming accretive.

Thierry Bernard: So on M&A, we confirm our traditional strategy. You see that, you know that we have a rich history, essentially, especially of bolt-on acquisitions. We have always said that we don't want to do M&A for the sake of M&A.

Speaker Change: And so we continue to actually look at opportunities. We also said that given the strength of our balance sheet, we would or we could also be looking at stronger.

Thierry Bernard: We want to do M&A not to spread the company's fame again, but we are constantly working, looking at opportunities that fit in our current portfolio and especially would reinforce our pillars of growth. So it's a very focused M&A strategy. We have also said many times that we are looking at opportunities that could be, for a short period of time, dilutive to our P&L but should be, in a very visible time frame, accretive. We always say that we normally give it normally around two years before becoming acquisitive.

Speaker Change: Stronger or bigger than just bolt on acquisition. So this is a work in progress.

Speaker Change: Once again, what you have to keep in mind, each we'd have to be very much fitting into our existing portfolio and existing strategy.

Speaker Change: We got to Virgin.

Speaker Change: We are we're expecting a contribution of around 20 million doled out for the year to fall down in 'twenty three entities, where we landed.

Thierry Bernard: And so we continue to actually look at opportunities. We also said that given the strength of our balance sheet, we would or we could also be looking at stronger, more robust or bigger than just bolt-on acquisitions. So this is a work in progress. Once again, what you have to keep in mind, it will have to fit very much into our existing portfolio and existing strategy. As regard to Verogein, we were expecting a contribution of around $20 million for the year 2023, and this is where we landed. Thanks so much.

Thanks, so much.

Speaker Change: Okay.

Speaker Change: Our next question comes from Doug Schenkel with Wolfe Research. Please go ahead.

Doug Schenkel: Hi, good morning, good afternoon, everyone.

Doug Schenkel: Thanks for sharing so much on your guidance philosophy for the year I know there's been a couple of questions on this on pacing I I wanted to take a different angle. So it's an uncertain time to say the least and you would've been an outlier you guided more aggressively in Q1.

Speaker Change: So to me while the Q1 guide is lower than what we see in consensus models I think the good thing is on the surface. It seems pretty derisked factoring in comments that you've made on OEM headwinds, China dynamics, and how pharma growth is expected to pace in an election year.

Thierry Bernard: Thank you. Thank you. Thank you. Our next question comes from Doug Schenkel of Wolf Research. Please go ahead. Hi, good morning, good afternoon, everyone.

Speaker Change: I guess my question is where could we be wrong, you know what what's the biggest risk to Q1 as we sit here today and then looking past Q1.

Doug Schenkel: Thanks for sharing so much about your guidance philosophy for the year. I know there's been a couple of questions on this and pacing, but I want to take a different angle.

Speaker Change: If you don't meet or even beat Q1 expectations just the rest of the year start to look aspirational.

Doug Schenkel: So it's an uncertain time, to say the least, and you would have been an outlier if you took it more aggressively in Q1. So to me, while the Q1 guide is lower than what we see in consensus models, I think the good thing is, on the surface, it seems pretty de-risked, factoring in comments that you've made on OEM headwinds, China dynamics, and how pharma growth is expected to pace in an election year. I guess my question is, where could we be wrong?

Because it is really back end loaded in terms of how you guided relative to the norm again I get it but.

Speaker Change: Again, I wanted to see what the risk is to Q1, if any and then get your take on what we need to see beyond our strong Q1 to have more confidence.

Speaker Change: And the outlook for the year in terms of your meeting or even beating expectations.

Speaker Change: I think thanks, Derik I think hold on I can take a a dog I'm sorry can take that question Hum.

Doug Schenkel: You know, what's the biggest risk to Q1 as we sit here today? And then looking past Q1, you know, if you don't meet or even beat Q1 expectations, does the rest of the year start to look aspirational? You know, because it is really back and loaded in terms of how you guided relative to the norm. Again, I get it.

Speaker Change: In terms of risk for Q1.

Speaker Change: Honestly I don't see a specific portfolio risk for Q1.

Speaker Change: The risk that I would highlight and it's not just impacting carrier journey that happened.

Speaker Change: Is the overall economic situation.

Speaker Change: So again, let's not forget that a half of the world is moving into election this year.

Speaker Change: That we believe that our lives are still a bit slow to a building up of getting their purchasing capacity.

Thierry Bernard: But again, I want to see what the risk is to Q1, if any, and then get your take on what we need to see beyond a strong Q1 to have more confidence in the outlook for the year, you know, in terms of you meeting or even beating expectations. I think, thanks Derik, I think Roland and I can take, Doug, I'm sorry, can take that question. In terms of risk for Q1... Honestly, I don't see a specific portfolio risk for...

Speaker Change: So D. C is for me the main challenge.

Speaker Change: Oh no he needs explanation on our 2024 guidance clearly also disclose that indeed, we have an acceleration, especially between H one N H two clearly.

Speaker Change: Missing Q1, obviously is not our Oh Gee is not what we want to continue to execute.

Speaker Change: But.

Speaker Change: Even if Q1 would it be through I wouldn't say necessarily that it would question the full year it would be far too early because once again, you see your logic sequential quarter by quarter acceleration of our of our performance and my last.

Thierry Bernard: The risk that I would highlight, and it's not just impacting Qiagen if that happens..., is the overall economic situation. Again, let's not forget that half of the world is moving into elections this year, and we believe that labs are still a bit slow to build up again their purchasing capacity. So, this is for me the main challenge. Roland, in his explanation of the 2024 guidance, also disclosed clearly that, indeed, we have an acceleration, especially between H1 and H2. Missing key one is obviously not our objective now. We want to continue to execute. But

Speaker Change: A rational argument would also be that do not forget that most of our new launches or expected extra contribution to our performance to fall then in 'twenty three east coming in edge too we plan to have Gi for carrier starts in the U S. Starting at age two we plan to have maintenance outages in the.

Speaker Change: Okay, just thought in Q4 of the year and we plan to have the really impact of it will carry equity clinical diagnostics also in age to those out my my my my assumption, but hold on please.

Speaker Change: Yeah, Hi, Dirk just pure editions and well come back.

Roland Sackers: Even if Q1 was a bit slow, I wouldn't necessarily say that it would question the full year. It would be far too early, because once again, you see a logical, sequential, quarter-by-quarter acceleration of our performance. A rational argument would also be that we should not forget that most of our new launches or expected extra contribution to our performance in 2023 is coming in H2. We plan to have GI for chiastat in the US starting in H2. We plan to have meningitis in the US for chiastat in Q4 of the year, and we plan to have the real impact of our Kayakwiti clinical diagnostic also in H2. Those are my assumptions, but Roland, please. Hi Doug, just a few additions and welcome back. As I said before, I also looked a bit backwards, more or less the years pre-COVID, because there are probably good indications of what we have seen before, right?

Speaker Change:

Dirk: I said before I also looked a bit better.

Dirk: Well, it's more or less a year's pre COVID-19 because they are probably a good indications what we have seen before what and so revenues less profitability share H. One edge to 424 is actually the same ratio as we have seen more or less for the year 16 bit 19, So I would say, it's quite normal in terms of web for the year.

Dirk: Second and I do think that is important.

Dirk: Well again, I would not I wish it was a ton of awards. What you said before it is you cannot argue with the web I would rather saying we expect worldwide are baked into all of the second part of the year. So the off as far as the first half Ceos and all the if you compare it to the full year 2013 or even to the.

Dirk: The second half of 'twenty 'twenty suite.

Dirk: That is what we expect to happen in the second part of the year.

Thank you very much.

Dirk: Yeah.

Speaker Change: The next question comes from Matt Falco Friedrichs Deutsche Bank. Please go ahead.

Roland Sackers: And so revenue slash profitability share H1, H2 for 2024 is actually in the same ratio as we have seen more or less for the year 2016-2019. So I would say it's quite normal in terms of revenue for the year. Second, and I do think that is important, again, I would rather turn around what you said before. You can now argue it's a ramp; I would rather think we expect things to go back to normal in the second part of the year. So the drop is rather in the first half of the year, the normal, if you compare it also to the full year 2013, or even to the second half of 2023.

Thank you. Good afternoon. My question is on kiosk that the ex police and which was a little bit slower in Q4 than what we're used to from this platform can you speak a bit about the dynamics in the fourth quarter also from a regional perspective and outside of the test menu expansion that you've just referenced what makes you confident that 2020 full.

Speaker Change: It'll be another step forward for the platform. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you Falco our.

Speaker Change: First of all are you.

Speaker Change: You see when you ask about the geographic.

Speaker Change: We have to be very clear.

Speaker Change: Because of the delay of G I registration in the U S.

Speaker Change: Most of the growth currently for a.

Roland Sackers: That is what we expect to happen in the second part of this question. Thank you very much. The next question comes from Falco Friedrichs of Deutsche Bank. Please go ahead. Thank you. Good afternoon.

Speaker Change: Start east coming from Europe.

Speaker Change: Promotes or middle East.

Speaker Change: And is your Pacific goes out to free contributions mainly to cast that.

Speaker Change: At the same time, it's quite Hum.

Speaker Change: Humbling.

Falco Friedrichs: My question is on Kiastat DX, please, which was a little bit slower in Q4 than we're used to from this platform. Can you speak a bit about the dynamics in the fourth quarter, also from a regional perspective, and outside of the test menu expansion that you've just referenced, what makes you confident that 2024 will be another step forward for the platform? Thank you. Thank you, Falco. First of all... You see, when you ask about the geography... We have to be very clear because of the delay in GI registration in the U.S.

Speaker Change: To see that.

Speaker Change: With one partner in respiratory in the U S. We continue to play system and take market against competition, which shows the strength of the platform.

Speaker Change: So why are we confident.

First.

Speaker Change: Because we do expect as I said before.

Speaker Change: Yeah, Yeah, and minions eye teeth to come in the U S in 2024.

Speaker Change: And if by the end of 'twenty four you have the free.

Speaker Change:

Speaker Change: No more I would say or traditional panel for syndromic testing available in the U S. You completely change the dynamic of growth.

Thierry Bernard: Most of the growth currently for Kayastat is coming from Europe, from the Middle East, and Asia Patil. Those are the three contributions mainly to CAST. At the same time, it's quite... Humbling to see that.

Speaker Change: Kerry I start in that market and I remind you that North America, you still the first market in volume for Syndromic testing.

Speaker Change: Second.

Speaker Change: Because we have also improved our HIFU put chaos that solution. The system that we call carrier start to rise and we are re launching it in 2024.

Thierry Bernard: With one panel respiratory in the U.S., we continue to play system and take the market against competition, which shows the strength of the platform. So, why are we confident? CURSE, Because we do expect, as I said before, VI and meningitis to come to the U.S. in 2020. And if by the end of 24, you have the three... Hmm?

Speaker Change: In Europe, but also in the U S.

Speaker Change: So long story short as we have said on our last Investor Day December eight 2020.

Speaker Change: <unk> starts.

Speaker Change: He's a solution with a double digit growth profile definitely.

Thierry Bernard: Normal, I would say, or traditional panel for syndromic testing available in the U.S., you completely change the dynamic of growth of Kyastat in that kit market. And I remind you that North America is still the first market in volume for syndromic testing. Second, because we have also improved our high-throughput Kiastat solution, the system that we call Kiastat RISE, and we are relaunching it in 2024, in Europe but also in the U.S. So, long story short.

Speaker Change: And we are moving to take do second position in that market.

Speaker Change: If I would have told you we would be number one on syndromic it would be purely S. P rational but position even carriers start to really become the number two in that market is your objective in D. C. Do you have to keep we're going to achieve.

Okay. Thank you.

Speaker Change: And we take our final question from Mac Sykes with Goldman Sachs. Please go ahead.

Thierry Bernard: As we said on our last Investor Day, December 8th, 2020. Kaya Starr is a solution with a double-digit growth profile, definitely, and we are moving to take the second position in that market. If I told you we would be number one on syndromic, it would be purely aspirational. But positioning Kayastat to really become number two in that market is the objective, and this is the objective we are going to achieve. Okay, thank you. And we'll take our final question from Matt Sykes with Goldman Sachs. Please go ahead. Good morning.

Mac Sykes: Good morning, Thanks for taking my questions just one for me.

Mac Sykes: Just you know can appreciate the capital equipment environment, you guys outlined.

Mac Sykes: In relation to the guidance in Q1 and 24.

Mac Sykes: Maybe just on the the level of recurring revenue that you have in a lot of that is expressed in sample technologies could you, maybe just give us a little bit more color on the cadence and your view on sample technologies.

Mac Sykes: Over the course of the year, you, obviously gave a full year guide for that business, but would just love to understand.

Matt Sykes: Thanks for taking my questions. Just one for me, just, you know, can appreciate the capital equipment environment you guys outlined in relation to the guidance for Q1 and 24, but maybe just on the level of recurring revenue that you have, and a lot of that is expressed in sample technologies. Could you maybe just give us a little bit more color on the cadence and your view on sample technologies over the course of the year? You obviously gave a full year guide for that business, but I would just love to understand how the pace of that business is going to do over the course of the year, particularly in Q1 and then the back half next year. I think, as we described, for the rest of the business, we expect sequential acceleration here as well, if you especially consider the purely non-COVID part of that sample test. We will be, completely aligned with the guidance once again that we gave on December the 8th, 2040 portfolio, which is between low to mid-single. We were very close to or slightly above mid-single digits in 2023. We expect to be slightly lower this year, but still in that guidance range of mid to, of low to mid-single.

Mac Sykes: The cadence of that business is going to do over the course of the year, particularly in Q1 and then the back half of this year.

Speaker Change: I think as we described for the rest of the business, we expect or.

Speaker Change: Sequential acceleration here as well.

Speaker Change: Particularly in.

Speaker Change: If you're especially consider the purely non COVID-19 part of that sample thick.

Speaker Change: Isn't it.

Speaker Change: We will be completely.

Speaker Change: Completely in line with the guidance once again that we gave on December 8th 2040 portfolio.

Speaker Change: Which is between low to mid single digit.

Speaker Change: We were very close or slightly above mid in 2020 free we expect to be slightly lower this year, but still in that guidance of mid to of low to mid single digits.

Speaker Change: Good.

Speaker Change: Central take is definitely.

Speaker Change: What for you where in addition to our current leadership.

Speaker Change: We want to continue to be on the attack.

Speaker Change: And what I mean by this.

Speaker Change: Is that not only are we the only company, which has systematically upgraded it seems three months for the last.

Speaker Change: Three years, Okay, Yeah, Q, becoming collect connect.

Speaker Change: Easy one becoming easy to every time with new features.

As we said today again, we we launched an upgraded version.

Speaker Change: Okay, Yes, Sinfonia, we're flexing platform.

Thierry Bernard: Heard. Sample Tech is definitely a portfolio where, in addition to our current leadership. We want to continue to be on the attack. And what I mean by this is that not only are we the only company which has systematically upgraded its instrument for the last previous, KayakCube becoming KayakCubeConnect. EZ-1 becoming EZ-2, every time with new features. As we said today again, we will launch an upgraded version of Kaya Symphony, our flagship platform, by the end of 2025. And we are also planning a new development in sample tech automation that we will probably disclose during our investor day on June 7th.

Speaker Change: By the end of 2025.

Speaker Change: And we are also planning new developed mentioned some particular donation that we we'd probably disclose during our investor day on June 17th.

Speaker Change: Thank you.

Speaker Change: Thank you Terry and with that I'd like to end. This call. If you have any questions or comments. Please don't hesitate to reach out to me and we're always available to help you bye bye.

Ladies and gentlemen, this concludes the conference call. Thank you for joining and have a pleasant day.

Speaker Change: Yeah.

Speaker Change: Yeah.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change: [music].

Thierry Bernard: Thank you. Thank you. Thank you, Thierry. And with that, I'd like to end this call. If you have any questions or comments, please don't hesitate to reach out to Phoebe and me, and we're always available to help you. Bye-bye. Ladies and gentlemen, this concludes the conference call. Thank you for joining and have a pleasant day. ? ? ? ? ? ? ? ? Thank you for watching! Music Music Music Music Music Music Music Music Music, Thank you for watching!