bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2005 Earnings Presentation
40 slides from bioMerieux SA's earnings presentation, 2005
Slide 1: First-Half 2005 Results
First-Half 2005 Results BIOME|IRIEUX
Slide 2: Disclaimer
Disclaimer The present release contains information, assumptions and estimates that were used to determine these objectives. They are subject to change or modification due to economic, financial and competitive uncertainties in France or in other countries. Further information regarding these assump
Slide 3: Outline
Outline 1. Introduction 2. A Solid First Half 3. Financial Review 4. 2005 Outlook 2
Slide 4: Outline
Outline 1. Introduction 2. A Solid First Half 3. Financial Review 4. 2005 Outlook 3
Slide 5: A Solid First Half
A Solid First Half X Figures in line with full-year objectives, in a still-challenging environment z net sales up 4%* z operating income of €62.2 million z net income up 17% X Further product launches: Vitek 2® Compact, TEMPO®, easyMAG®, etc. X A large number of business development agreements X Sus
Slide 6: Net Sales: More Than 80% Generated Outside France
Net Sales: More Than 80% Generated Outside France €280m 59% of the total o/w France €91m 19% of the total Europe- Middle East- Africa €118m 25% of the total North America Latin America €29m 6% of the total Asia-Pacific €48m 10% of the total 5
Slide 7: Net Sales: Growth in All Regions
Net Sales: Growth in All Regions North America Europe-Middle East-Africa (1) 5.2% excluding France - 1.1% 1.0% 5.0% 8.3% 2.0% 4.7%(1) -2.0% 0.0% 2.0% 4.0% 6.0% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% GROUP 0.2% 7.8% 4.0% 0.0% 5.0% 10.0% Latin America Asia-Pacific - 1.7% - 0.1% 11.5% 10.2% 4.7% 5.2% -5.0% 0.0
Slide 8: Clinical Applications Up 4.1%
Clinical Applications Up 4.1%* X First-half 2005 net sales by technologies Organic growth Other Clinical Lines + €16.2m Haemostasis €40m Currency €23m - €2.7m Molecular net sales Biology €12m €415.2m net sales €401.7m Immunoassays Bacteriology €118m €222m + 4.1%* Bacteriology: up 8%* H1 2004 H1 2005
Slide 9: Industrial Applications Up 3.7%
Industrial Applications Up 3.7%* X Exceptionally high Q1 2004 comparative weighed on H1 2005 growth Organic X First-half net sales growth by applications Currency - €0.6m + €2.2m Industrial Applications net sales €60m net sales 12.6% of net sales €59.8m €58.2m + 3.7%* Clinical Applications €415m 87.
Slide 10: Further Growth in the Installed Base
Further Growth in the Installed Base X 1,600 new instruments installed in the first half X Installed base at June 30, 2005: more than 40,000 instruments 4.4% Services 10.1% Instruments 85.5% Reagents Reagents/Instruments/Services Breakdown 9
Slide 11: Ongoing Product Launches
Ongoing Product Launches X Three new platforms: Vitek®2 Compact TEMPO® easyMAG® X 15 new reagents and 3 software applications 10
Slide 12: Nuclisens Line
Nuclisens® Line X Highly automated molecular biology platform Nuclisens® easyMAG® Nuclisens® easyQ® Sample Amplification preparation Detection Extraction 11
Slide 13: easyMAG
easyMAG® X Nuclisens® easyMag® simplifies sample preparation in molecular biology laboratories Management Software with touch screen interface Reagent compartment Bar code reader 12
Slide 14: easyMAG
easyMAG® X One set of reagents for all protocols X Nuclisens® easyMag® combines automation and proprietary BOOM® technology, the reference technology in extraction 13
Slide 15: easyMAG Competitive Advantages
easyMAG® Competitive Advantages X Automation: z Up to 240 extractions per day z Less than 15 minutes of hands-on-time per 24 extractions X Flexibility: z A single generic protocol for all samples z The first automated platform that can simultaneously process different samples and volumes X Excellent
Slide 16: A Large Number of Business Development Agreements
A Large Number of Business Development Agreements X Acquisition of biomarkers: z Brahms - Procalcitonin (PCT): marker for severe bacterial infections (sepsis) z Roche - proBNP: marker for congestive heart failure and acute coronary syndrome X Partnerships: z Chinese Academy of Medical Sciences: crea
Slide 17: Tighter Quality Assurance Systems
Tighter Quality Assurance Systems X Increasingly stringent regulatory environment: z FDA inspection of the two main facilities in France, Marcy-l’Etoile and Craponne, between March and June 2005 with satisfactory outcome z FDA inspection of the Lombard, Illinois facility in April 2005 with satisfact
Slide 18: Capital Expenditure
Capital Expenditure X Sustained capital expenditure program: €25 million X Main spending in the period: z Grenoble, France z Craponne, France z Durham, North Carolina z Florence, Italy 17
Slide 19: Grenoble, France
Grenoble, France X Work completed on new dedicated molecular biology center 18
Slide 20: Craponne, France
Craponne, France X Petri dish production capacity increased by one-third (2004-05) 19
Slide 21: Durham, North Carolina
Durham, North Carolina X Quality assurance plan, especially for production operations 20
Slide 22: Florence, Italy
Florence, Italy X Acquisition of a building to expand instrument production facilities 21
Slide 23: Outline
Outline 1. Introduction 2. A Solid First Half 3. Financial Review 9 IFRS 9 Income Statement 9 Statement of Cash Flows and Balance Sheet 4. 2005 Outlook 22
Slide 24: IFRS Impact on Financial Statements
IFRS Impact on Financial Statements X 2004: French GAAP results Slides in the appendix detail the impact on net income, equity and debt of the transition to IFRS Only material impacts: on net income: goodwill no longer amortized (reduction of €4.4 million in 2004) on debt: reclassification of
Slide 25: Consolidated Income Statement
Consolidated Income Statement H1 2005 H1 2004 Change Net sales €475m €460m + 3%* Operating income €62m €61m + 1% % net sales 13.1% 13.3% Net income of consolidated €39m €33m + 17% companies % net sales 8.2% 7.2% * up 4% at constant exchange rates 24
Slide 26: Operating Income
Operating Income X bioMérieux absorbed the impact of higher raw materials prices and tighter quality assurance systems… Gross profit SG&A R&D/IP Restruc- + 4.3 - 4.0 turing/IPO + 2.9 + €3.2m + 2.1 Operating income 66.6 61.3 13.3% of net sales H1 2004 in € millions 25
Slide 27: Operating Income
Operating Income X … while continuing to invest in business development Gross profit SG&A Business R&D/IP development Restruc- + 4.3 - 4.0 turing/IPO + 2.9 - 4.4 + 2,1 Operating Operating income income 66.6 62.2 61.3 13.1% 13.3% of net of net sales sales H1 2004 H1 2005 in € millions 26
Slide 28: Gross Margin Declined
Gross Margin Declined X Tighter quality assurance systems Gross profit SG&A Business R&D/IP development Restruc- + 4.3 - 4.0 turing/IPO + 2.9 - 4.4 + 2,1 Operating Operating Gross margin: down 80 bps income income to 52.9% of net sales 62.2 61.3 • Higher production costs (QA/QC) 13.1% 13.3% of net o
Slide 29: Strengthened Sales and Marketing Teams
Strengthened Sales and Marketing Teams Gross profit SG&A Business R&D/IP development Restruc- + 4.3 - 4.0 turing/IPO + 2.9 - 4.4 + 2.1 Operating Operating SG&A stable at 27.1% of net sales income income 62.2 61.3 • Strengthened sales and marketing teams • Listing related expenses 13.1% 13.3% of net
Slide 30: Managed R&D Expenses
Managed R&D Expenses Gross profit SG&A Business R&D/IP development Restruc- + 4.3 - 4.0 turing/IPO + 2.9 - 4.4 + 2.1 Operating Operating R&D spending down €3.3m income income (increased 10%* in 2004) 62.2 61.3 Royalty income: down €0.4m (non-recurring income in 2004) 13.1% 13.3% of net of net sales
Slide 31: A Large Number of Business Development Agreements
A Large Number of Business Development Agreements Gross profit SG&A Business R&D/IP development Restruc- + 4.3 - 4.0 turing/IPO + 2.9 - 4.4 + 2.1 Operating Operating income income R&D and Business development 62.2 61.3 outlays represented 13.3% of net sales, 13.1% 13.3% versus 13.5% in first-half 20
Slide 32: Net Income Up Sharply
Net Income Up Sharply Financial cost Tax - 1.6 Operating + 6.4 income + 0.9 39.0 33.3 8.2% of net sales + 17 % * 7.2% of net sales H1 2004 H1 2005 Net income Net income in € millions * before change of method 31
Slide 33: Financial Cost Declined
Financial Cost Declined Financial cost Tax - 1.6 Operating + 6.4 income + 0.9 39.0 33.3 • Lower average debt and interest rates 8.2% of net 7.2% sales of net • Decline in non-recurring financial items sales H1 2004 H1 2005 Net income Net income in € millions 32
Slide 34: Free Cash Flow Climbed 14%
Free Cash Flow Climbed 14% H1 2005 H1 2004 Change EBITDA(1) €97m €101m - €4m % net sales 20.4% 22.0% Operating working capital - €16m - €19m + €3m Tax and financial cost - €16m - €26m + €10m Instruments (net) - €16m - €16m Other investments - €25m - €19m - €6m Free Cash Flow(2) €24m €21 M€ + €3m Div
Slide 35: A Solid Balance Sheet
A Solid Balance Sheet X Balance sheet at June 30, 2005 Assets Liabilities Goodwill €69m Instruments €65m Other €439m Equity €287m non-current assets Gearing 25% Working capital €127m €109m Net debt 34
Slide 36: Outline
Outline 1. Introduction 2. A Solid First Half 3. Financial Review 4. 2005 Outlook 35
Slide 37: Full-Year 2005 Outlook maintained
Full-Year 2005 Outlook maintained X Growth in net sales excluding the currency effect comparable to 2004 X Ongoing productivity programs and action plans at a time of: z Investments in quality assurance systems z Higher raw materials prices z Further new product launches 36
Slide 38: B
B
Slide 39: Appendix
Appendix X Transition to IFRS: Income statement reclassifications for 2004 38
Slide 40: IFRS Impact on 2004 Financial Statements
IFRS Impact on 2004 Financial Statements X Reclassifications affected operating income, no impact on net income Reclassification (Dec. 31, 2004) French GAAP €m IFRS €m Sales discounts Financial cost + 1.0 net sales - 1.0 IPO expenses + 5.2 - 5.2 Other operating Gains/losses on the sale of Exceptiona