bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2006 Earnings Presentation
34 slides from bioMerieux SA's earnings presentation, September 2006
Slide 1: First-Half 2006 Results
First-Half 2006 Results September 2006
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: Outline
Outline Introduction A Strong First Half in a Changing Market Financial Review 2006 Outlook 2
Slide 4: Outline
Outline Introduction A Strong First Half in a Changing Market Z Operating Highlights Other Events Financial Review 2006 Outlook 3
Slide 5: A strong first half
A strong first half ` Sustained growth and higher earnings Z Net sales up 6.1%* Z Operating income before non-recurring items up 18.2% Z Operating income up 37.5% Z Net income up 41.1% (up 21% excluding sale of the hemostasis business) ` Refocusing on the strategic ranges ` Continued implementation
Slide 6: Strong growth in the strategic ranges
Strong growth in the strategic ranges Strategic ranges: up 7.6% €454m ` Clinical applications: €448m + 5.3% 48% 4% Z Bacteriology: €245m + 7.6% Z Immunoassays (VIDAS): €121m + 0.1% 23% Z Molecular biology: €20m + 64.5% 13% 8% 4% ` Industrial applications: €68m + 11.8% €62m Other ranges: down 3.9% Ba
Slide 7: Growing sales in every region
Growing sales in every region North America: up 7.1% EMEA*: up 5.0% (9.3% excl. France) Latin America: up 5.6% Asia-Pacific: up 10.4% * EMEA: Europe. Middle East. Africa Growth rates calculated at constant exchange rates 6
Slide 8: Growing sales in every region
Growing sales in every region EMEA: North America: Z Strong performances by VITEK2 Z Success of the VITEK2 Compact reagents and chromogenic media Z Sustained growth in VIDAS Z Growth in molecular biology POC (Point of Care) sales Z Slower growth in VIDAS routine tests Z Growth in molecular biology L
Slide 9: Further growth in the installed base
Further growth in the installed base Installed base - Number of instruments* 43,400 41,500 Breakdown of sales 38,000 4.6% 34,400 10.9% 84.5% June Reagents Instruments Services 2003 2004 2005 2006 ` Around 1,900 new instruments installed during the period ` No change in the instruments sold/instrumen
Slide 10: Outline
Outline Introduction A Strong First Half in a Changing Market Operating Highlights Z Other Events Financial Review 2006 Outlook 9
Slide 11: Refocusing on the strategic ranges
Refocusing on the strategic ranges Sale of the hemostasis range ` Sold to Trinity Biotech plc Z 2005 revenue: €45 million Z No. 4 in the global hemostasis market Z MDA®, MTX® and Thrombolyzer® platforms and a comprehensive reagents menu Z bioMérieux will continue to produce the range for 12 months `
Slide 12: Other highlights of the period
Other highlights of the period ` Acquisition of 100% of Bacterial Barcodes. Inc. Z US molecular biotechnology company, owning proprietary Diversilab® system for automated microbial genotyping Z Fostering in infectious control: identification of multi-drug resistant bacteria in hospital and industria
Slide 13: New product launches
New product launches ` In 1st half 2006: 17 reagents and 3 software applications launched Count Count Tact Tact 3P 3P PPM PPM Strepto Strepto BB ID VITEK2 VITEK2 AST AST Pinch Pinch EasyQ EasyQ ASR ASR VIDIA ID VIDIA Ferritin Ferritin ββ lactamase lactamase VRSA VRSA Dilutor Dilutor GVPCHSV HSV Easy
Slide 14: Outline
Outline Introduction A Strong First Half in a Changing Market Financial Review Z Income Statement Cash Flow Statement and Balance Sheet 2006 Outlook 13
Slide 15: Consolidated income statement
Consolidated income statement in € millions H1-2006 H1-2005 % Change Net sales 516.4 475.0 + 9%* Operating income before non-recurring items 74.4 62.9 + 18% as a % of sales 14.4% 13.2% Operating income 85.6 62.2 + 38% as a % of sales 16.6% 13.1% Net income 55.1 39.0 + 41% as a % of sales 10.7% 8.2%
Slide 16: Analysis of growth in net sales
Analysis of growth in net sales Excluding hemostasis + €31.4m + 7% Hemostasis - €2.3m + €12.3m €516.4m Organic growth Currency +6.1% effect +2.6% €475.0m + €41.4m + 8.7% H1-2005 H1-2006 15
Slide 17: Net sales excluding hemostasis
Net sales excluding hemostasis €518.6m €516.4m Total €475m + 7.4% + 6.1% + 4% Hemostasis €22.4m €21.2m sales €23m €496.2m 495.2m € Sales excl. €452m hemostasis + 8.4% + 7% + 4.8% H1-2005 H2-2005 H1-2006 16
Slide 18: Consolidated income statement
Consolidated income statement in € millions H1-2006 H1-2005 % Change Net sales 516.4 475.0 + 9%* Operating income before non-recurring items 74.4 62.9 + 18% as a % of sales 14.4% 13.2% Operating income 85.6 62.2 + 38% as a % of sales 16.6% 13.1% Net income 55.1 39.0 + 41% as a % of sales 10.7% 8.2%
Slide 19: Consolidated income statement
Consolidated income statement in € millions H1-2006 H1-2005 % Change Net sales 516.4 475.0 + 9%* Operating income before non-recurring items 74.4 62.9 + 18% as a % of sales 14.4% 13.2% Operating income 85.6 62.2 + 38% as a % of sales 16.6% 13.1% Net income 55.1 39.0 + 41% as a % of sales 10.7% 8.2%
Slide 20: Consolidated income statement
Consolidated income statement in € millions H1-2006 H1-2005 % Change Net sales 516.4 475.0 + 9%* Operating income before non-recurring items 74.4 62.9 + 18% as a % of sales 14.4% 13.2% Operating income 85.6 62.2 + 38% as a % of sales 16.6% 13.1% Net income 55.1 39.0 + 41% as a % of sales 10.7% 8.2%
Slide 21: Analysis of growth in operating income before non-recurring items
Analysis of growth in operating income before non-recurring items Gross profit SG&A Operating income Operating - €9.4m before income R&D / IP non-recurring + €21.7m items before - €0.8m non-recurring items 52.8% of sales (52.9% in H1-2005) €74.4m €62.9m 14.4% of sales + €11.5m 13.2% of sales + 18.2%
Slide 22: Gross profit
Gross profit Other Gross profit Organic growth + €6.4m ` Favorable currency effect + €15.3m ` Resolution of the Gross profit HIV dispute ` Stable raw materials prices + 6.1% of sales €272.9m ` Sustained (52.9% in H1-2005) implementation of the QA/QC plan 52.8% of sales ` Economies of scale €251.2m a
Slide 23: Selling, general and administrative expense
Selling, general and administrative expense Gross profit SG&A Operating income Operating - €9.4m before income R&D / IP non-recurring + €21.7m items before - €0.8m non-recurring items 26.7% of sales (27.1% in H1-2005) €74.4m €62.9m 14.4% of sales 13.2% of sales H1-2005 H1-2006 22
Slide 24: Stable R&D expenditure
Stable R&D expenditure Gross profit SG&A Operating income Operating - €9.4m before income R&D / IP non-recurring + €21.7m items before - €0.8m non-recurring items 12.6% of sales €74.4m ` Higher R&D €62.9m budgets ` Business development 14.4% of sales 13.2% of expenses down sales €5.2m ` Increased in
Slide 25: Analysis of growth in net income
Analysis of growth in net income Net Other financial non-recurring expense Income tax Operating income income before + €1.2m - €7.8m Associates non-recurring Net income items + €11.9m - €0.7m Net income + €11.5m €55.1m €39.0m 10.7% of sales 8.2% of sales + €16.1m H1-2005 H1-2006 24
Slide 26: Divestment of the hemostasis line
Divestment of the hemostasis line Net Other financial non-recurring expense Income tax Operating income income before + €1.2m - €7.8m Associates non-recurring Net income items + €11.9m - €0.7m Net income + €11.5m ` Net capital gain on the hemostasis divestment: €11.3m €55.1m €39.0m 10.7% of sales 8.
Slide 27: Improvement in net financial income
Improvement in net financial income Net Other financial non-recurring expense Income tax Operating income income before + €1.2m - €7.8m Associates non-recurring Net income items + €11.9m - €0.7m Net income + €11.5m ` Reduction in average debt ` Stable average interest rates €55.1m €39.0m 10.7% of sa
Slide 28: Tax rate: 35.5%
Tax rate: 35.5% Net Other financial non-recurring expense Income tax Operating income income before + €1.2m - €7.8m Associates non-recurring Net income items + €11.9m - €0.7m Net income + €11.5m ` Lower losses from bioMérieux BV €55.1m €39.0m 10.7% of sales 8.2% of sales H1-2005 H1-2006 27
Slide 29: Outline
Outline Introduction A Strong First Half in a Changing Market Financial Review Income Statement Z Cash Flow Statement and Balance Sheet 2006 Outlook 28
Slide 30: Free cash flow of €14m
Free cash flow of €14m in € millions H1-06 H1-05 Change EBITDA (1) 110 97 13 Provisions and other -11 0 -11 Cash flow before cost of debt and income tax 99 97 2 Operating working capital requirement -32 -16 -16 Income tax and financial expense -29 -16 -13 Capital expenditure (2) -50 -43 -7 Hemostasi
Slide 31: Sustained capital expenditure
Sustained capital expenditure H1-2006 H1-2005 €25m € 18m Instruments Other capital €18m € 24m expenditure Total € 43m 8.4% of sales €42m 8.8% of sales Change in payables to PPE suppliers + €7 m + €1 m Cash outlays € 50m € 43m 30
Slide 32: A solid balance sheet
A solid balance sheet Assets Liabilities Goodwill € 67m Instruments € 64m Other non-current €513m Equity assets 286m € Gearing: 10% (25% at 30/6/2005) WCR 147m € € 51m Net debt Syndicated loan in stand-by ` €260m ` Due in 2013 31
Slide 33: Outline
Outline Introduction A Good First Half in a Changing Market Financial Review 2006 Outlook 32
Slide 34: 2006 Outlook
2006 Outlook ` Sales: Z Growth in sales Z Sustained deployment of the new platforms and enriched reagent menus Z Refocusing on the strategic ranges Growth in net sales at the high end of the 5% to 6% range* ` Operating income before non-recurring items: Z Further economies of scale and action plans