bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2014 Earnings Presentation
41 slides from bioMerieux SA's earnings presentation, Mar 11, 2015
Slide 1: Business Review for 2014
Business Review for 2014 Paris - March 11, 2015
Slide 2: Disclaimer
Disclaimer This presentation contains information, assumptions and estimates that were used by the Company to determine its objectives on a reasonable basis. They are subject to change or modification due to economic, financial and competitive uncertainties in France or in other countries. Further i
Slide 3: Overview
Overview Introduction 2014 Sales Performance 2014 Financial Results 2015 Dynamics, Objectives and Conclusion 2
Slide 4: 2014: a constructive year in bioMérieux's roadmap
2014: a constructive year in bioMérieux’s roadmap Strategic roadmap: decisive milestones Operational organization: redeployment ! ! ! ! Drive market Provide a Seize Strictly growth for continuous strategic manage selected rollout opportunities operating positions of innovation costs Robust strategic
Slide 5: Overview
Overview Introduction 2014 Sales Performance 2014 Financial Results 2015 Dynamics, Objectives and Conclusion 4
Slide 6: 2014: a leading year Solid operational performance
2014: a leading year Solid operational performance Sales €1,698m, up 8.7% at constant exchange rates and 3.8% like-for-like Contributive EBIT before non-recurring €227m, in line with the objective items Free cash-flow €158m, up 42%, while intensifying investment 13 new product launches, incl. VIRTUO
Slide 7: 2014: a leading year Key strategic initiatives
2014: a leading year Key strategic initiatives Molecular Acquisition of BioFire for a syndromic approach to infectious disease diagnostics Biology Micro- Strategic alliance with Copan in automated clinical microbiology biology Immuno- Partnership with Astute Medical to develop VIDAS® NEPHROCHECK® te
Slide 8: Vast geographic footprint enables to seize growth opportunities
Vast geographic footprint enables to seize growth opportunities North America Europe, Middle East & Africa 26% Group’s sales 48% Group’s sales up 4.9% up 2.2% Sales at December 31, 2014 Americas €1,698m 34% Group’s sales + 8.7%, incl. BioFire and at cst. exchange rates up 6.9% + 3.8%, organic growth
Slide 9: BioFire and FilmArray: outstanding 2014 commercial performance
BioFire and FilmArray®: outstanding 2014 commercial performance ∼ 1,400 FilmArray® units at customer locations €78m in sales, FDA-clearance and CE-marking Up 60%* of a 3rd panel NGDS agreement with the U.S. DoD** * Since its acquisition 8 ** Next Generation Diagnostic System Technology Development C
Slide 10: A stronger portfolio of technologies to capture market growth opportunities
A stronger portfolio of technologies to capture market growth opportunities Sales Dec 31, 2014 % Change Highlights (€m) Like-for-like per Application Clinical 1,352 + 4.6% Molecular Biology: Applications up 91% year-on-year, in euros Microbiology 802 + 2.8% Durham situation Immunoassays* 386 + 8.0%
Slide 11: A resilient business model
A resilient business model ! Installed base at December 31, 2014: ∼ 79,500 instruments 20% 80% ! ∼ 4,800 new instruments installed in 2014 Placed / sold Instruments installed base Services Reagents Reagents and services " ∼ 89% of sales " Up 5%+ 10
Slide 12: Overview
Overview Introduction 2014 Sales Performance 2014 Financial Results 2015 Dynamics, Objectives and Conclusion 11
Slide 13: Consolidated data (in € millions)
Consolidated data (in € millions) At December 31, 2014 In €m 2014 As a % 2013 As a % % Change % Change(3) of sales of sales 2014 / 2013 cst. currencies Net sales 1,698 100% 1,588 100% + 7.0% + 8.7% Gross profit 845 49.7% 825 51.9% + 2.4% Contributive operating income before PPA & non- 227 13.4% 262
Slide 14: Net sales Solid growth, lifted sharply by BioFire
Net sales Solid growth, lifted sharply by BioFire BioFire additional sales Net sales Organic + €78m growth Currency Net sales effect + €60m - €28m $: + €2m €1,698 €1,698 mm Others: - €30m + 3.8% + 4.9% €1,588m + 8.7% + €110m + 7.0% 2013 2014 13
Slide 15: 2014 strong currency effect
2014 strong currency effect A highly volatile monetary environment 0.0% - 0.4% North America - 0.9% Growth rate EMEA* - 0.4% in euros Latin America + 4.9% Asia-Pacific Organic growth rate BioFire additional sales + 7.0% + 3.8% Group Group Activity: + 8.7% Currency effect: - 1.7% 14 * Europe, Middle
Slide 16: Gross profit
Gross profit At December 31, 2014 Currency BioFire effect* Other - €27m Organic growth + €44m Gross profit - €28m Gross profit + €31m + €28m Production in Durham Sales: + €60m Depreciation (based on x 51.9% bus. dev. agreements) Higher freight costs €845m + Favorable product mix + Slight increase in
Slide 17: Contributive operating income
Contributive operating income* At December 31, 2014 Contributive Gross profit SG&A operating income + €20m - €48m R&D tax Contributive R&D credits & operating Business dev. Royalties received income 26.6% of sales (25.4% 2013) - €20m + €13m €262m 12.1% of sales (11.7% 2013) 16.5% of sales €227m 13.4
Slide 18: Net result (in € millions)
Net result (in € millions) At December 31, 2014 In €m 2014 As a % 2013 As a % % Change of sales of sales 2014 / 2013 Contributive operating 227 13.4% 262 16.5% - 13.6% income BioFire PPA / acquisition costs - 24 - 1.5% -2 - 0.1% Operating income 203 11.9% 260 16.4% - 22.1% before non-recurring items
Slide 19: Cash flow statement (in € millions)
Cash flow statement (in € millions) At December 31, 2014 In €m 2014 2013 Contributive operating income 227 262 Depreciation and amortization 105 91 EBITDA(1) 332 353 2014: effective containment of Operating working capital requirement + 24 - 40 operating working capital requirement Other cash flow f
Slide 20: Capital expenditure
Capital expenditure At December 31, 2014 2014 €31m 2012 2013 2010 Substantial capital 2011 expenditure programs on-going €33m €30m on our main sites Instruments €36m €34m €103m Other capital €68m €77m expenditure €55m 2015: Capex expected to €54m reach ∼ €200m " Capacity needs " Marcy site extension
Slide 21: Summarized balance sheet (in € millions)
Summarized balance sheet (in € millions) At December 31, 2014 Assets Liabilities BioFire: €129m Goodwill €438m €1,389m Equity (€305m) (€1,267m) Instruments (€57m) €61m Secure financial facilities " €300m bond Incl. BioFire • With institutional investors " Intangibles: €288m Other €1,029m • October 2
Slide 22: Overview
Overview Introduction 2014 Sales Performance 2014 Financial Results 2015 Dynamics, Objectives and Conclusion 21
Slide 23: Our main drivers for 2015 and beyond
Our 3 main drivers for 2015 and beyond are based on fortified strategic and operating positions Ongoing initiatives for operating 3 main drivers for 2015 and beyond excellence " Re-engineer our supply chain " Prioritize our portfolio of R&D projects Profitable and Customer Operational " Deploy the t
Slide 24: 3 regions to accelerate our growth: Europe, Middle East and Africa
3 regions to accelerate our growth, while placing customers at the heart of our development EUROPE, MIDDLE EAST AND AFRICA Business environment " Difficult economic situation with low GDP growth and geopolitical tensions in some areas " Healthcare budget cuts and ongoing lab consolidation Our dynami
Slide 25: 3 regions to accelerate our growth: Americas
3 regions to accelerate our growth, while placing customers at the heart of our development AMERICAS Business environment " Evolution of the North American healthcare system: from volume to value " Favorable healthcare market conditions in Latin America Our dynamics for 2015 and beyond " Leverage ou
Slide 26: 3 regions to accelerate our growth: Asia-Pacific
3 regions to accelerate our growth, while placing customers at the heart of our development ASIA-PACIFIC Business environment " Highly diversified healthcare market " Home of #2 (Japan) and #3 (China) IVD markets in the world " Strong healthcare growth in many emerging countries Our dynamics for 201
Slide 27: bioMérieux - BioFire: own the fast growing syndromic approach
bioMérieux - BioFire: own the fast growing syndromic approach ! A unique value proposition Rapidity Automation / Ease-of-use Comprehensiveness ! The most competitive product offering " FilmArray® instrument: 2 commercially-available versions FilmArray® FilmArray® 2.0 " 3 CE-marked and FDA-approved F
Slide 28: Clinical microbiology: further consolidate our positions
Clinical microbiology: further consolidate our positions Performance VITEK® 2 SolutionsTM BacT/ALERT® 3D MYLA® VITEK® MS VIRTUOTM Blood culture Lab Efficiency Reconquer the market Be a dynamic player 27
Slide 29: "Lab Efficiency" offering immediately available
“Lab Efficiency” offering immediately available Reaffirmed commitment in “Lab Efficiency” to consolidate our leadership in clinical microbiology ! Fast-growing customer demand ! A strategic partnership with " Strong synergies between bioMérieux’s expertise in biology and Copan’s know-how in engineer
Slide 30: Immunoassays: focus on high medical value tests and emerging countries
Immunoassays: focus on high medical value tests and emerging countries VIDAS® - Mini VIDAS® VIDAS® 3 VIDAS® B.R.A.H.M.S PCTTM Immunoassays Be a specialized player 29
Slide 31: Industrial applications: a priority market
Industrial applications: a priority market BioBall® Industrial applications Restore faster commercial momentum 30
Slide 32: Production and Quality: continuous improvement
Production and Quality: continuous improvement ! In the short term: continue progress on quality improvement commitments " Durham (NC, U.S.) site: production of blood culture reagents • Production conditions improved with all lines operating 24/7 • Quality System action plan on track " St. Louis (MO
Slide 33: Invest for growth
Invest for growth ! Salt Lake City (UT - U.S.): new building " Building for FilmArray® R&D and production, and BioFire Diagnostics administrative team " Total investment: ∼ $95m, incl. ∼ $31m in 2015 " Expected in-service date: second-half 2016 ! Durham (NC - U.S.): new production line " Building &
Slide 34: 2015 organic sales growth objective
2015 organic sales growth objective 2015 ORGANIC SALES GROWTH OBJECTIVE 4.5 - 6.5% Organic sales At constant exchange rates growth objective: & scope of consolidation BioFire net sales impact ∼ 150 bp Including: Assuming a flu epidemic of average intensity 33
Slide 35: 2015 contributive EBIT objective
2015 contributive EBIT objective 2015 CONTRIBUTIVE EBIT OBJECTIVE Contributive operating income €240 - €265m before non-recurring items and at current exchange rates BioFire purchase price accounting entries: • Operating costs to strengthen the Asia- Pacific regional organization • Operating expense
Slide 36: Conclusion: high confidence in the effectiveness of our business model
Conclusion: high confidence in the effectiveness of our business model ! Solidified fundamentals " New operating organization deployed and effective " FilmArray® commercial success demonstrated and BioFire acquisition relevance proved " Production conditions at Durham improved ! Look to the future w
Slide 37: Appendix
Appendix Quarterly Sales From Contributive Operating Income to Operating Income Operating Performance Indicators per Geographic Area 36
Slide 38: Robust sales growth, in line with the 2014 objective
Robust sales growth, in line with the 2014 objective, despite an ongoing complex economic context North America Europe, Middle East & Africa Q1 Q2 Q3 Q4 Dec 31 Q1 Q2 Q3 Q4 Dec 31 + 5.4% + 5.7% + 6.6% + 1.9% + 4.9% Total + 2.7% + 5.0% + 0.3% + 1.0% + 2.2% Europe + 1.4% + 4.1% + 0.8% + 1.9% + 2.0% Met
Slide 39: From contributive operating income to operating income
From contributive operating income* to operating income** In €m 2014 As a % 2013*** As a % of sales of sales Contributive operating income 227 13.4% 262 16.5% before PPA & non-recurring items Adjustments - 24 - 1.5% -2 - 0.1% BioFire acquisition costs -7 -2 Amortization of BioFire technologies and i
Slide 40: Operating performance indicators per geographic area
Operating performance indicators per geographic area December 31, 2014 Americas EMEA* Asia-Pacific bioTheranostics Corporate TOTAL In €m Sales 562 818 300 11 7 1,698 Gross profit 274 426 149 6 - 10 845 Contributive operating income 160 301 98 - 10 - 322 227 before PPA & non-recurring items ! Useful
Slide 41: Business Review for 2014
Business Review for 2014 Paris - March 11, 2015