Eurofins Scientific Se · EURONEXT:ERF
Eurofins Scientific — Investor Presentation (May 2024)
100 slides from Eurofins Scientific's investor presentation, May 2024
Slide 1: Eurofins Corporate Presentation
CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd, 2024. All rights reserved. This document contains information that is confidential and proprietary to Eurofins Scientific SE and / or its affiliates and is solely for the use of the personnel of Eurofins Scientific SE and all its af
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase securities in Eurofins Scientific S.E. and neither this document nor anything contained or referred to in it shall form the basis of, or be relied on
Slide 3: Executive Summary
Executive Summary CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 3
Slide 4: Our Vision & Purpose: Testing for Life
Our Vision & Purpose: Testing for Life We aim to have a positive impact on LIFE, HEALTH and the ENVIRONMENT. CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eur
Slide 5: Eurofins: The World Leader in Testing for Life
Eurofins: The World Leader in Testing for Life Key Figures 35+ years of value creation • Long-term track record of turning investments into growth, productivity, margin expansion and Return on Capital Employed more 450,000,000+ • Competitive advantages based on than 900 tests performed each year sca
Slide 6: Eurofins' Mission is to contribute to global Health, Safety & Environment
Eurofins’ Mission is to contribute to global Health, Safety & Environment with the best in bioanalysis Eurofins provides testing services in four main areas that have a strong impact on human health • Founded in 1987 Food • IPO on 24 October 1997 at €0.183 • In the 26 years since its IPO to 31st Dec
Slide 7: What we do
What we do ACTIVE WHEREVER TESTING CAN IN VITRO FOOD AND FEED TESTING DIAGNOSTICS AGRO TESTING PROTECT LIFE COSMETICS TESTING MATERIALS AND ENVIRONMENT ENGINEERING SCIENCES FORENSIC TESTING SERVICES AGROSCIENCE SERVICES BIOPHARMA SERVICES ASSURANCE GENOMIC SERVICES CONSUMER CLINICAL DIAGNOSTICS PROD
Slide 8: Fastest growing TIC company with attractive and resilient organic growth
Fastest growing TIC company which became the leader of an industry with attractive and resilient organic growth • Market Structural growth: est. ~1.5-2.0x Gross Domestic Product growth • Globalisation, urbanisation and outsourcing increasing need and demand for a healthier life and safer environment
Slide 9: Drivers for long-term market growth above GDP
Drivers for long-term market growth above GDP Secular Underlying General Market Drivers Laboratory Market Drivers Fundamentals Demand for safe pharmaceuticals, Increasing wealth Consumer quality food and clean environment and quality of life expectations for protection Consolidation of the fragmente
Slide 10: Global trends in regulation support the business
Global trends in regulation support the business • Strongly regulated markets (EU, U.S.) are still amending and adding regulations • Eastern European countries catching up with EU regulations • Fast development of regulation in Asia • Regulation used for support of trading blocks (e.g. EU, NAFTA, AS
Slide 11: Outsourcing adds to market growth
Outsourcing adds to market growth Examples of laboratories outsourced to Eurofins Company Outsourced Activity Country Gelre Clinical Diagnostics Netherlands PAMM Clinical Diagnostics Netherlands Fujitsu Quality Lab Specialised Material Sciences Japan MML Alrijne Clinical Diagnostics Netherlands Labs
Slide 12: Building leadership positions in an industry with network effects
Building leadership positions in an industry with significant network effects and competitive advantage for the market leader • High level of investment and innovation required to build and efficiently run a network of High barriers modern laboratories (buildings, equipment, IT infrastructure and so
Slide 13: Strategy aims at building long-lasting competitive advantage
Eurofins’ strategy aims at building long-lasting competitive advantage in very attractive markets Leading technology Quality of customer service • Competence Centres & R&D activities • Extensive expertise in local regulations for all major markets, and one-stop contact for compliance in multiple cou
Slide 14: High Barriers to Entry around its businesses
Eurofins is developing high Barriers to Entry around its businesses Offering a premium quality service … ... and leveraging internal efficiencies • Portfolio: over 200,000 analytical methods – unique in the • Industrialising the laboratory process: rationalisation of world and ahead of competition s
Slide 15: Building the Platform – Eurofins 2012 - Eurofins 2023
Building the Platform – Eurofins 2012 - Eurofins 2023 2012 2015 2019 2020 2021 2022 2023 2012-2023 ∆ Revenues (€ m) 1,044 1,950 4,563 5,439 6,718 6,712 6,515 18% CAGR Employees 10,890 18,382 43,320 50,000 58,000 61,000 62,000 17% CAGR (total headcount) Number of >+730 170 225 >800 >800 900 900 >900
Slide 16: One-of-a-kind 'hub and spoke' laboratory network
One-of-a-kind ‘hub and spoke’ laboratory network infrastructure is our platform for market leadership Spoke Eurofins’ network of laboratories Hub Local laboratories address immediate local Competence centres concentrate more specialised testing needs testing demands • Fast turnaround time for time-c
Slide 17: Infrastructure plan update: hub and spoke laboratories platform
Infrastructure plan update: building a one-of-a-kind hub and spoke laboratories platform for global leadership in our markets to capture scale advantages • Building large high-throughput laboratory campuses (hubs of the hub and spoke structure) As of the end of 2023, Eurofins occupied more than 1,90
Slide 18: Large majority of revenues from markets with global leadership positions
Overall, a large majority of Eurofins’ revenues come from markets where the Group has established global leadership positions Business Line Global leadership position Food & Feed testing ✓ These global Environment testing ✓ leadership Clinical Diagnostics positions are the basis to BioPharma Product
Slide 19: Present in countries generating over 88% of world GDP
Eurofins is already present in countries generating over 88% of the world’s GDP… but still has lots of room to grow International Monetary Fund Eurofins market presence (Estimates as of October 2023) (To the best of Eurofins’ knowledge, based on data available to the Group) Country GDP ($tn) % of wo
Slide 20: Leader in most markets, building global and local leadership
Eurofins is a leader in most of its markets and continues to build global & local leadership positions* in markets where scale matters CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an author
Slide 21: Good track record of integrating acquired businesses
Eurofins has a good track record of successfully integrating acquired businesses Good pipeline of M&A opportunities 70 600 536 Number of acquisitions per year (average) 496 Cumulative number of acquisitions 60 500 437 50 399 373 400 347 40 295 300 30 235 59 60 52 200 40 20 127 38 26 26 10 18 100 10
Slide 22: Innovation driven growth
We continue to lead our field in terms of innovation Eurofins continued to invest, throughout 2023, to ensure our entrepreneurs have the strongest foundation to pursue innovation-driven growth In 2023, Eurofins’ scientists published numerous scientific papers in academic journals 1 Scientific Scient
Slide 23: Activities
Activities CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 23
Slide 24: Revenue by area of activity in FY 2023
Revenue by area of activity in FY 2023 10% Activities are defined as follows: • Life: • Food and Feed Testing • Agro Testing 20% • Environment Testing 40% • BioPharma: • BioPharma Services • Agrosciences • Genomics • Forensic Services • Diagnostic Services and Products: • Clinical Diagnostics Testin
Slide 25: Leading global and local market positions in high-growth markets
Leading global and local market positions in attractive high-growth markets* Testing for Food & Feed Testing Environment Testing Clinical Diagnostics Pharma/Biotech/Agrosciences Eurofins N°1 to N°3 N°1 N°1 Start-Up position* worldwide worldwide worldwide Started 2014 Started 2000-2005 Started 1987 S
Slide 26: Global leadership positions in high potential niche markets
Eurofins has also established global leadership positions in high potential niche markets Agroscience CRO** Advanced Materials Genomic Services Discovery Pharmacology Cosmetics Testing Services Sciences N°3 N°1 N°1 N°1 to N°2 N°1 Worldwide Eurofins position* worldwide worldwide worldwide worldwide N
Slide 27: Present in several high growth Life Sciences markets
Eurofins is also present in several high growth Life Sciences markets Oligonucleotides Production and In Vitro Diagnostics (IVD) Solutions Next Generation Sequencing (NGS) #3* worldwide Eurofins Start-up #3* in Europe position Start 2016 Start 2000 Gold Standard Diagnostics, previously known as Euro
Slide 28: Food & Feed Testing
Food & Feed Testing CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 28
Slide 29: Best-in-class Food & Feed Testing network in Europe
Eurofins operates the best-in-class Food & Feed Testing network in Europe Eurofins Food and Feed Testing European Network Market leader in significant markets • Nordics • Spain • Germany • Benelux • France • UK & Ireland >100 laboratories throughout Europe, including 5 hubs offering specialised test
Slide 30: Best-in-class hub and spoke network in North America
Eurofins Food & Feed has built and operates the best-in- class hub and spoke network in North America HUB LABS Des Moines, IA Madison, WI Madison, WI New Orleans, LA Toronto, ON Toronto, ON Los Angeles, CA Minneapolis, MN Madison, WI SPOKE LABS Atlanta, GA Gordon, NE Philadelphia, PA Battle Creek, M
Slide 31: Addressable food & feed testing market growth drivers
Eurofins’ ~€4bn1 addressable global food & feed testing market enjoys robust growth drivers Globalisation: raw Consumers’ Outsourcing of Food scares and materials sourced increasing awareness industry’s internal or crises, widely covered from countries with and demand for safe state- owned in the me
Slide 32: High profile food scares have expensive consequences
High profile food scares have expensive consequences for producers… Brand / Year Contamination Impact Cost Source Country 2023 Gills Onions Salmonella contaminating diced 73 illnesses, 15 hospitalisations in 22 states in the U.S., with the Centers for Disease Control and Prevention noting the outbre
Slide 33: Leading Food & Feed Testing position in Europe
Our leading Food & Feed Testing market position in Europe is underpinned by the trust of our customers Food & beverage Agriculture Retailers Restaurants & Caterers producers Customers1 & Contracts Global players International conglomerates Supermarket chains Major operators Caterers + regional & loc
Slide 34: Environment Testing
Environment Testing CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 34
Slide 35: Best-in-class Environment Testing network in Europe
Eurofins operates the best-in-class Environment Testing network in Europe Eurofins Environment Testing European Network Market leader in significant markets • Nordics • Spain • Germany • Belgium • France • The Netherlands • Austria • Ireland >110 laboratories throughout Europe, including >10 hubs of
Slide 36: Eurofins Environment Testing U.S.
Eurofins Environment Testing U.S. 67 Laboratory Locations ~3,000 Staff (2022) 5M Samples (2022 actual) 550+ Accreditations & Certifications CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an a
Slide 37: Addressable environment testing market growth drivers
Eurofins’ ~€5bn1 addressable global environment testing market enjoys robust growth drivers Progress in epidemiology & Rise in contamination & Increasing demand by citizens medicine has identified more pollution issues for a clean environment compounds as toxic Increasingly long list of products ide
Slide 38: Leading Environment Testing position in Europe
Our leading Environment Testing market position in Europe is underpinned by the trust of our customers Engineering, Consulting, Industry, Manufacturing & Soil & Hazardous Waste Governments, Universities Construction firms firms & Non-Profits Customers1 & Contracts Global players Global players Typic
Slide 39: Expanding PFAS challenge and testing market opportunity
Recent studies highlight expanding PFAS challenge and testing market opportunity PFAS contamination in Europe1 PFAS contamination in the U.S.2 • >17,000 sites where PFAS contamination has been detected • >57,000 presumptive PFAS contamination sites • Additional >21,000 presumptive PFAS contamination
Slide 40: Momentum behind regulations to drive PFAS testing demand
Strong momentum behind further regulations to drive PFAS testing demand U.S. EU • Sep 2022: EPA proposed designation of PFOA & PFOS as hazardous substances under CERCLA Link • Jan 2023: European Commission sets maximum levels for certain PFAS contaminants in foodstuffs • April 2024: EPA announced th
Slide 41: Technology and thought leader in PFAS testing
Eurofins is a technology and thought leader in PFAS testing Science behind PFAS testing increasing in scope and complexity Eurofins industry leadership Eurofins was the first commercial Laboratory OECD Group to conduct Non-Targeted PFAS analysis revised • Looking for complete unknowns allows us to B
Slide 42: Extensive geographical and technological coverage for PFAS testing
Eurofins has one of the most extensive geographical and technological coverages for PFAS testing Leading global laboratory network for PFAS testing PFAS testing capabilities by medium Water • Monitoring drinking water programmes in the U.S., France and Scandinavia Specialist PFAS laboratories in • L
Slide 43: BioPharma Services
BioPharma Services CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 43
Slide 44: BioPharma services span the complete product development cycle
Eurofins BioPharma services span the complete product development cycle CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is str
Slide 45: Leading Global BioPharma Network
Leading Global BioPharma Network ~190,000 m2 Leader in significant markets ~130,000 ~5,000 • Global leader in BioPharma Product Testing m2 ~6,000 employees employees • Global leader in Discovery Pharmacology Services 82 • Global leader in Agroscience CRO Services laboratories 32 Europe laboratories
Slide 46: BioPharma Services Evolution
BioPharma Services Evolution Started Select milestones / acquisitions Market position today 2011: Global infrastructure established (US, Among top 5 global players 2001 Central Laboratory / Bioanalytical Acquisitions: Netherlands, Singapore, China, India) 2005 Genomic Services Acquisitions: Among to
Slide 47: Clients & Peers
Clients & Peers Major Biopharma companies Innovative biotech Example clients Clients1 + regional & local players Typical contractual ➢ Product Testing: annual master service agreements relationship: ➢ Research & Development Services: project-based agreements Peers + regional & local competitors CONF
Slide 48: R&D Spend Evolution
R&D Spend Evolution Worldwide Total Pharmaceutical R&D Spend ($bn)1 Market drivers R&D spend continues to grow substantially, driven by 350 intensity & speed of innovation 289 296 302 • Increased focus on biologics vs. small molecules 300 281 262 272 = increasing amounts spent per drug 249 250 244 •
Slide 49: Large Market Opportunities
Large Market Opportunities Novel innovations1 Chemicals Biologics Cell and gene therapies Opportunities for Eurofins Description / Complexity2 Increasing complexity in testing and clinical Altering of genetic material trials Traditional, biomarkers, Traditional, biomarkers, genomics, Evidence / Endp
Slide 50: Clinical Diagnostics
Clinical Diagnostics CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 50
Slide 51: Clinical diagnostics market growth drivers
Eurofins’ clinical diagnostics market enjoys robust growth drivers Outsourcing of Efforts to optimise Aging & growing Medical and scientific hospital’s internal or healthcare system population innovations state- owned costs laboratories Need for earlier & more diagnosis Advances in genomics, genetic
Slide 52: Portfolio of specialised clinical diagnostics laboratories
Eurofins has built a valuable portfolio of specialised clinical diagnostics laboratories Genomics Infectious Diseases Organ transplants Oncology Women’s Health Robust portfolio of infectious Testing services supporting Advanced suite of molecular Custom DNA & RNA synthesis, Supporting women before,
Slide 53: ESG
ESG CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 53
Slide 54: Further progress in all dimensions of ESG
Further progress in all dimensions of ESG Environmental Social Governance Carbon emissions Carbon intensity by (ktCO2e) revenue (market-based) (tCO2e/€m) Female Female (market-based) representation representation Bitsight Security Net Promoter amongst GOC and amongst National Rating2 Score (NPS)® -2
Slide 55: Contributing to 16 of 17 UN Sustainable Development Goals
Eurofins is positively contributing to 16 of 17 United Nations Sustainable Development Goals (UNSDGs) We are aligned with 16 out of 17 UNSDGs both at central level, through the Eurofins Foundation and through the activities of our business lines CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (
Slide 56: Activities contribute to UN Sustainable Development Goals
Almost all Eurofins activities contribute to United Nations Sustainable Development Goals (UN SDGs) Share of Eurofins revenues by Sustainability Level Sustainability Definition1 Examples of Eurofins 99% level activities TIC services not eligible under 76% EU Taxonomy and not Level 3 supporting Taxon
Slide 57: Our Businesses are ESG positive
Our Businesses are ESG positive • We help improve health outcomes, ensure food safety and protect the environment • E.g., our Environment, Food and Feed Laboratories: ✓ Assess safety of the whole water cycle and analyse waste toxicity ✓ Monitor air pollution and soil quality ✓ Contribute to developi
Slide 58: Eurofins is an ESG enabler
Eurofins is an ESG enabler Supporting a healthy environment Emphasising sustainable testing We value biodiversity Our testing services help improve health We have a strong commitment to the The Eurofins Foundation supports outcomes, ensure food safety and protect 3R strategy multiple biodiversity co
Slide 59: Innovations
Innovations CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd 2024. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 59
Slide 60: Onconext - Next Generation Oncology Diagnostics
Some of Eurofins’ Innovations: Onconext - Next Generation Oncology Diagnostics • Onconext from Eurofins Genoma is an advanced molecular diagnostics solution for personalised cancer care that uses state of the art technology • The team comprises multidisciplinary professionals specialised in molecula
Slide 61: Expanding global offering in non-invasive prenatal testing
Eurofins is expanding its global offering in non-invasive prenatal testing (NIPT) In September 2017, Eurofins’ Genoma introduced GeneSafeTM, the first non-invasive prenatal test that screens for both de novo (non-inherited gene mutations) and inherited single-gene disorders. ▪ GeneSafeTM detects ove
Slide 62: Developing proprietary automation technologies
Eurofins is developing proprietary automation technologies and starting to deploy them across its global network Bespoke modular automation platform Attractive financial profile Multi-year investments underway • Significant OpEx for development • Part of CapEx for growth and efficiency Example Conta
Slide 63: FY 2023 results
FY 2023 results CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 63
Slide 64: Forward momentum from H2 2023 expected to carry into 2024
Forward momentum from H2 2023 expected to carry on into 2024 Key highlights Focus areas for 2024 H2 2023 represents the first period not affected by prior year Continue building on comparables and thus for the first time provides a comparison progress made in 2023 mostly free from the one-time effec
Slide 65: FY 2023 results in line with objectives
FY 2023 results in line with objectives Full Year 2023 Full Year 2022 +/- Δ +/- Δ (€m) Adjusted SDIs Reported Adjusted SDIs Reported Adjusted Reported Results Results Results Results Results Results • Revenues declined y-o-y due to sharp decrease in COVID-19-related revenues Revenues 6,515 - 6,515 6
Slide 66: Revenue bridge
Revenue bridge (€m) FY 2023: just over €20m FY 2022: just under €600m 6,749 6,712 H1 2023: +7.0%1 H2 2023: +7.2%1 FY 2023: +7.1%1 • FX headwind of 1.9% due to appreciation of the Euro 6,515 • Sharp y-o-y decrease in COVID-19 revenues • Consistently strong Core Business organic growth1 (+7.1% in FY 2
Slide 67: Organic growth by Operating Segment
Organic growth by Operating Segment Revenues (€m) Core Business1 Operating Segment Commentary organic growth +7.1% • BioPharma Services: sound growth despite softer demand for early-stage R&D activities (Discovery) 6,712 6,515 • Food Testing: solid gains in pricing while persisting inflation continu
Slide 68: 2023 cash flow overview
2023 cash flow overview FY 2022 FY 2023 Δ Δ% €m €m €m Change in net working capital 31 -65 -96 Income taxes paid -296 -140 156 Net cash provided by operating activities 1,136 1,018 -118 -10% Net operating capex -459 -392 67 • Stable FCFF year-on-year Free cash flow to the firm (FCFF) before investme
Slide 69: Prudent capital allocation strategy centred on growth investments
Eurofins remains committed to its prudent capital allocation strategy centred on growth investments1 Cash flow generation (2019-2023) Investment allocation (2019-2023) 2019-2022 2023 % of sales % of sales Maintenance • Assume 2.5% of sales capex Sales €23.4bn €6.5bn Net cash provided by operating €4
Slide 70: Net working capital
Net working capital 2.1% 2.2% 2.1% NWC intensity Inventory €154m €146m €139m • Net working capital intensity at 5.1% of revenues 2021 2022 2023 • Stable inventory at 2.1% of 19.1% 20.0% 20.4% revenues vs 2.2% in 2022 5.1% receivable1 Accounts 4.5% • Slightly higher DSOs2 at 59 4.2% €1,389m €1,342m €
Slide 71: Strong credit profile and long maturities
Strong credit profile and long maturities Leverage1 Debt maturity profile2 (€m) Key Highlights 3.2x Hybrid (1st call) • Net debt decreased from €3,245m at Schuldschein the end of FY 2019 to €2,705m at the Eurobond end of FY 2023 • Strong cash position of €1.2bn at the end of 2023 or €773m adjusted f
Slide 72: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) ROCE & ROCE excluding Goodwill1 • ROCE development affected by the following factors in 2023: 68% • Lower EBITAS due to decline in accretive COVID-19 testing and inflationary headwinds Excluding owned • Increase in Capital Employed related to higher net capex to sup
Slide 73: 2024 and 2027 Objectives
2024 and 2027 Objectives (€m) FY 2024 Mid-term objectives FY 2027 +6.5% organic growth p.a. Revenues €7.075bn – €7.175bn €250m revenues added from M&A p.a. Approaching €10bn Adj. EBITDA €1.525bn – €1.575bn Continued growth investments in: Margin: 24% Ownership of strategic sites FCFF before investme
Slide 74: Our long-term track record
Our long-term track record CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 74
Slide 75: Continued investments in strategic initiatives in 2023
Continued investments in strategic initiatives in 2023 Strategic investment initiatives for (€m) 2018 2019 2020 2021 2022 2023 long-term value creation Leasehold improvements (LHI) & others 95 55 71 117 146 70 Owned sites to complete hub and spoke network % of revenues 2.5% 1.2% 1.3% 1.7% 2.2% 1.1%
Slide 76: Continued increase in site ownership
Continued increase in site ownership, creating significant long-term value Discretionary decision to increase proportion of owned sites Site ownership has high value Surface area (m2) by site ownership Site ownership is key to expanding high-throughput laboratory campuses: >3x total • Unlock economi
Slide 77: Site ownership has attractive financial fundamentals
Site ownership has attractive financial fundamentals Benefits Examples • Estimated rent savings of €79m1 in FY 2023 from owned sites • Estimated yield on rent savings from owned sites of 12% (based on the estimated net book value at end of 2023 of 1 Savings €670m) • Lower operating costs from invest
Slide 78: Food Testing campus in U.S. demonstrates value of ownership
Food Testing campus in U.S. demonstrates value of strategic ownership of key strategic sites 2019 2022 Advantage: significant space savings Madison, Wisconsin Laboratory surface area (m2) Sites 2019 ➢ Footprint optimisation – consolidated -41% consolidating smaller into large 2022 sites into large c
Slide 79: Expanding proportion of owned sites in global network
Expanding proportion of owned sites in our global laboratory network Examples of owned sites completed in 2023 Planned additions to owned sites in 2024-2025 Eurofins Environment Testing Spain Eurofins BioPharma Product Testing Castellon, Spain France 5,000 m² Lentilly, France Tamworth, UK 2,000 m2 F
Slide 80: Eurofins accelerated its pace of start-up activity in 2023
Eurofins accelerated its pace of start-up activity in 2023 Long track record Strategic rationale Contributions by start-ups in FY 2023 Number of start-ups created Complements M&A strategy: • When acquisitions are too expensive or Organic growth contribution Programme Total Per year unavailable 1 200
Slide 81: Start-ups continue to contribute growth and complement M&A
Start-ups continue to contribute growth and complement our M&A strategy Key Highlights 700 Start-ups revenues (€m) Program 1 (2000-09) 629 Program 2 (2010-13) 600 Program 3 (2014-18) Program 4 (2019-21) • 50 new start-ups and 49 BCPs 520 established in 2023 Program 5 (2022- ) 500 • Contributed 60 bp
Slide 82: Investments in start-ups are integral to long-term growth
Investments in start-ups are integral to long-term growth and value creation Revenue development Profitability development Cash flow development Revenues EBITDA Operating cash flow and capex Establish Ramp Establish Ramp Establish Ramp Group ~ average margin Year 1 2 3 4 5 0 Operating cash flow Year
Slide 83: Fully digital with proprietary IT solutions
Ongoing investments to be fully digital by deploying sector-leading proprietary IT solutions 30+ years of innovation with bespoke proprietary Laboratory Information Management Systems (LIMS) specific to each business line 1990s Today and beyond • 1991: Started development of proprietary eLIMS for fo
Slide 84: Well positioned for big data analysis
Our technological capabilities and scientific expertise make Eurofins well positioned for “big data” analysis Reference Examples: clinical testing for samples rare diseases and oncology Sa mp le Big data Generate full set of Match repository Generate full set of Sa data from the tested against refer
Slide 85: Case study: AI improves productivity of asbestos testing
Case study: AI1 improves productivity of Asbestos testing Asbestos testing market Traditional asbestos Improved asbestos testing flow in France testing flow Pre-analysis / Pre-analysis / Preparation Preparation 10 million Growth samples driven by per year2 regulation Analysis Analysis Eurofins is th
Slide 86: Divestment of non-core Digital Testing asset
Divestment of non-core Digital Testing asset is another example of Eurofins value creation ability Built unique Digital Testing platform Creating value1 Recognised as a global leader in its space in terms Platform increased substantially in size of technology, innovation & service quality: during Eu
Slide 87: Among the best in Total Shareholder Return 1997-2022
Eurofins has been among the best in the world in terms of Total Shareholder Return1 between 1997 and 2022 Superior performance Best among peers Among the best in the world 140 €126.44 @ 21/09/21 120 100 80 60 €64.78 40 20 €0.1829 0 24/10/2004 24/10/1997 24/10/1998 24/10/1999 24/10/2000 24/10/2001 24
Slide 88: Family-owned businesses grow faster and outperform peers
IMD and Credit Suisse reports show that family-owned businesses grow faster and outperform their peers * Credit Suisse* Supported by superior growth and profitability Revenue and EBITDA growth is stronger, EBITDA margins are higher and cash flow returns are better. Family-owned companies also appear
Slide 89: 2024 marks 11 years of sector outperformance
2024 marks 11 years of sector outperformance Reported Reported Reported Reported Revenues (€m) Revenues (€m) Revenues (€m) Revenues (€m) +3% CAGR 7,000 7,000 7,000 7,000 (2012-2023) +18% CAGR (2012-2023) +4% CAGR (2012-2023) 6,000 6,000 6,000 6,000 5,000 5,000 +5% CAGR 5,000 5,000 (2012-2023) 4,000
Slide 90: Conclusion: our sustainable competitive advantage
Conclusion: our sustainable competitive advantage Best in class technology and quality give best brand High-growth, non-cyclical markets driven by secular mega- protection trends N° 1 or 2 worldwide in most business lines Advancing globalisation but with very few global testing Operating in 62 count
Slide 91: Appendix
Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2024]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited. 91
Slide 92: M&A Value Creation: Covance Food Solutions 1/2
M&A Value Creation Case study: Covance Food Solutions (CFS) 1/2 Integration in US Food & Feed Testing Laboratory Network • Acquisition of CFS brought 9 facilities to US network • 7 new laboratories renovated or newly constructed to optimise hub & spoke network • 6 of the CFS facilities in the US wer
Slide 93: M&A Value Creation: Covance Food Solutions 2/2
M&A Value Creation Case study: Covance Food Solutions (CFS) 2/2 Key highlights Key drivers of value creation • CFS acquired in August 2018 from LabCorp • 12 facilities (9 US, 2 UK, 1 Singapore) • Acquisition price: €572m • Acquisition rationale: • Significantly strengthened scale and scientific dept
Slide 94: M&A Value Creation: TestAmerica 1/2
M&A Value Creation Case study: TestAmerica (TA) 1/2 Integration in US Environment Testing Laboratory Network • Acquisition of TA brought 24 laboratories to US network • 7 new laboratories renovated or newly constructed to optimise hub & spoke network • 10 of TA laboratories and 6 of Eurofins laborat
Slide 95: M&A Value Creation: TestAmerica 2/2
M&A Value Creation Case study: TestAmerica (TA) 2/2 Key highlights Key drivers of value creation • TestAmerica acquired in October 2018 from JSTI Group Environment testing and sampling affected by COVID in 2020 and 2021 • 24 full service testing laboratories and 40 service centres throughout the US
Slide 96: M&A Value Creation: EAG Materials & Engineering Sciences
M&A Value Creation Case study: EAG Materials & Engineering Sciences (MS/ES) Key highlights Key drivers of value creation • EAG acquired in September 2017 from • Acquisition rationale: Odyssey Investment Partners • Capabilities in Agroscience testing turned Eurofins into the global leader in Agroscie
Slide 97: M&A Value Creation: DiscoverX
M&A Value Creation Case study: DiscoverX Key highlights Key drivers of value creation • DiscoverX acquired in 2017 • 4 facilities (3 US, 1 UK) • Acquisition price: €114m • Acquisition rationale: Financial performance • DiscoverX is a leader in drug discovery products and services across all stages o
Slide 98: M&A has consistently created value
M&A has consistently created value Covance Food Solutions TestAmerica • Acquired in August 2018 • Acquired in October 2018 • Enabled Eurofins to become leader in US Food & Feed Testing • Enabled Eurofins to become leader in US Environment Testing market (previously 2nd-3rd largest player) market (pr
Slide 99: Net Capex to Sales
We have built a hard-to-replicate world-class infrastructure Eurofins has been consistently investing more than its peers 12% 200% 180% 10% 160% Net Capex to Sales 140% 8% 120% 6% 100% 80% 4% 60% 40% 2% 20% 0% 0% 00-'04 05-'09 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ERF
Slide 100: Definitions / Alternative Performance Measures (APMs)
Definitions / Alternative Performance Measures (APMs) Adjusted results – reflect the ongoing performance of the mature and recurring activities excluding “separately disclosed items”. Separately disclosed items (SDI) – include: • one-off costs from integration and reorganisation; • discontinued oper
Eurofins Scientific — Investor Presentation (May 2024) on 6ix