bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2014 Earnings Presentation
31 slides from bioMerieux SA's earnings presentation, Sep 3, 2014
Slide 1: 2014 First-Half Business Review
2014 First-Half Business Review Paris - September 3, 2014
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 First-Half Performance 2014 First-Half Financial Results Objectives and Conclusion
Slide 4: Favorable business trends
Favorable business trends In a fragile economic environment, the in vitro diagnostics market benefits from structural, positive drivers } Antimicrobial resistance: global report on surveillance 2014 WHO organization - April 30, 2014 “A post-antibiotic era - in which common infections and minor inju
Slide 5: Overview
Overview Introduction 2014 First-Half Performance 2014 First-Half Financial Results Objectives and Conclusion
Slide 6: Major operating investments in first-half 2014
Major operating investments in first-half 2014 } New operating organization } Large-scale operating initiatives CLINICAL UNIT INDUSTRY UNIT { In manufacturing, at Durham (North Carolina - U.S.) { In S&M { In innovation EMEA AMERICAS ASPAC REGION REGION REGION } Solid progress in integrating Bi
Slide 7: First-half 2014 key figures
First-half 2014 key figures Up 7.9%, at constant exchange rates Net sales €781m Up 4.2%, like-for-like Up 3.5%, reported Contributive operating income €94m - 24.8%, reported before non-recurring items* Free cash flow €69m Up €27m, reported * Operating income before non-recurring items, before non-re
Slide 8: Broad geographic diversification provides a resilient and solid base for expansion
Broad geographic diversification provides a resilient and solid base for expansion North America Europe, Middle East & Africa 25% Group’s sales 52% Group’s sales up 5.6% up 3.9% Sales at June 30, 2014 Americas €781m + 7.9%, incl. BioFire and at cst. 33% exchange rates Group’s sales + 4.2%, organic g
Slide 9: Good sales momentum in North America and business recovery confirmed in Europe
Good sales momentum in North America and business recovery confirmed in Europe North America Europe, Middle East & Africa Q1 Q2 H1 Q1 Q2 H1 + 5.4% + 5.7% + 5.6% Total + 2.7% + 5.0% + 3.9% Europe + 1.4% + 4.1% + 2.8% Metera* + 11.3% + 9.1% + 10.0% Group Q1 Q2 H1 + 4.1% + 4.3% + 4.2%** Latin America A
Slide 10: bioMérieux strong ambitions in China
bioMérieux strong ambitions in China: « In China, with China, for China » } Promising market fundamentals: 1/5 of world population consuming 5% of IVD (market: €2b, up 15-20% - source: www.ivdchina.org) { State healthcare reform and increasing healthcare expenditure as % of GDP { Public health aw
Slide 11: A stronger portfolio of technologies to capture market growth opportunities
A stronger portfolio of technologies to capture market growth opportunities Sales H1 2014 % Change Highlights per Application (€m) Like-for-like Clinical Applications 620 + 4.4% Molecular Biology: up 70% in H1 2014, in euros Microbiology 365 + 1.0% Durham situation Immunoassays 185 + 10.4% VIDAS®: +
Slide 12: A resilient business model
A resilient business model } Installed base at June 30, 2014: ∼ 76,270 instruments } 1,560 new instruments installed in the first half Instruments 9.3% 7.8% Services Reagents 82.9% Reagents and services { ∼ 91% of sales { Up 5%+ 11
Slide 13: First-half 2014 main achievements
First-half 2014 main achievements demonstrate our ability to consolidate our position even further Operations } Effective deployment of the new operating organization, while continuing our long-term, focused strategy { Reinforce customer centricity { Improve our operating performance } Substanti
Slide 14: Production at Durham: bioMérieux's priority
Production at Durham*: bioMérieux’s priority bioMérieux’s commitment: { Return to a satisfactory production situation by the end of 2014 { Sustainably reinforce the site’s quality system } Blood culture reagent production: { A major product line for the diagnosis of sepsis in critical patient ca
Slide 15: VIRTUO: a new dimension in blood culture testing
VIRTUOTM: a new dimension in blood culture testing The first CE-marked fully automated blood culture system maximizes laboratory efficiency and provides actionable and faster results On-time alert Intuitive touchscreen New growth detection algorithms “Set and forget” loading Smart scanning technolog
Slide 16: Significant progress on the integration of BioFire
Significant progress on the integration of BioFire { Sales: up 42% (since acquisition) { Installed base: ∼ 860 FilmArray® instruments, up 150 { 3 regulatory approved panels { Available for sale in the U.S and 25 EU countries } FilmArray®: commercial availability extended to new markets } Gastr
Slide 17: Overview
Overview Introduction 2014 First-Half Performance 2014 First-Half Financial Results Objectives and Conclusion
Slide 18: Consolidated data (in € millions) At June 30, 2014
Consolidated data (in € millions) At June 30, 2014 In €m H1 As a % H1 As a % % Change of sales of sales 2014 2013 H1 2014 / H1 2013 (1) Net sales 781 100% 754 100% + 3.5% Gross profit 387 49.6% 397 52.6% - 2.3% Contributive operating income 94 12.0% 125 16.6% - 24.8% before non-recurring items(2) Op
Slide 19: Net sales: Solid growth in first-half
Net sales Solid growth in first-half BioFire additional sales Net sales Net sales Currency effect Organic growth + €28m - €33m + €32m $: - €8m + 4.2% + 3.7% Others: - €25m €781m €754m + 7.9% + €27m + 3.5% H1 2013 H1 2014 18
Slide 20: H1 2014 strong currency effect reflects the rise in the euro
H1 2014 strong currency effect reflects the rise in the euro Adjust sales strategy to the volatile monetary environment - 0.5% EMEA* - 1.2% + 3.7% North America - 1.5% Organic growth rate Growth rate Latin America - 1.2% in euros BioFire additional sales Asia-Pacific + 4.2% + 3.5% Activity: + 7.9% C
Slide 21: Gross profit At June 30, 2014
Gross profit At June 30, 2014 Currency BioFire effect* Organic growth Gross profit + €12m - €26m + €17m Other Gross profit - €13m Sales: + €32m x 52.6% - Production in Durham - FDA compliance costs + Favorable product mix €397m + Slight increase €387m in reagent average selling prices 52.6% 49.6% of
Slide 22: Contributive operating income At June 30, 2014
Contributive operating income* At June 30, 2014 Contributive operating income Gross profit - €10m SG&A R&D tax credits & Contributive - €16m R&D Royalties operating received income 27.5% of sales - €10m + €5m (26.3% H1 2013) €125m 12.8% of sales (11.9% H1 2013) 16.6% of sales €94m Flat at constant e
Slide 23: From contributive operating income to operating income
From contributive operating income* to operating income** In €m H1 As a % of sales 2014 Contributive operating income 94 12.0% before non-recurring items Adjustments*** - 15 - 1.8% BioFire acquisition costs -5 Amortization of BioFire technologies and intangible assets -6 Stock consumption (remeasure
Slide 24: Net result (in € millions) At June 30, 2014
Net result (in € millions) At June 30, 2014 In €m H1 As a % H1 As a % % Change of sales of sales 2014 2013 H1 2014 / H1 2013 Operating income 79 10.2% 125 16.6% - 36.5% before non-recurring items Non-recurring items +2 + 0.1% -1 - 0.2% Operating income 81 10.3% 124 16.4% - 34.9% Net financial expens
Slide 25: Cash flow statement (in € millions) At June 30, 2014
Cash flow statement (in € millions) At June 30, 2014 In €m H1 2014 H1 2013 Contributive operating income 94 125 Depreciation and amortization 47 44 EBITDA (1) 141 169 H1 2014: + €13m Operating working capital requirement +1 - 55 from Spanish provinces to settle past due A/R Other cash flow from oper
Slide 26: Summarized balance sheet (in € millions) At June 30, 2014
Summarized balance sheet (in € millions) At June 30, 2014 Assets Liabilities BioFire (1): €138m Goodwill (€305m) €442m €1,273m Equity (€1,267m) Instruments (€57m) €58m Secure financial facilities Incl. BioFire (1) { €300m bond { Intangibles: €253m Other €924m • With institutional investors { PPE:
Slide 27: Overview
Overview Introduction 2014 First-Half Performance 2014 First-Half Financial Results Objectives and Conclusion
Slide 28: 2014 organic sales growth objective
2014 organic sales growth objective 2014 ORGANIC SALES GROWTH OBJECTIVE 3 - 5% Organic sales At constant exchange rates growth objective: & scope of consolidation Forex (USD, BRL, INR, ARS,TRL) BioFire net sales Reported sales growth negative impact positive impact in euros will also include: ∼ €50m
Slide 29: 2014 objective for contributive operating income before non-recurring items
2014 objective for contributive operating income before non-recurring items (contributive EBIT) 2014 OBJECTIVE FOR CONTRIBUTIVE OPERATING INCOME BEFORE NON-RECURRING ITEMS* (CONTRIBUTIVE EBIT) Including: - Negative currency effect: ∼ > €25m, based on currently observed exchange rates Contributive EB
Slide 30: 2014: an investment year in a difficult currency context
2014: an investment year in a difficult currency context } Capacity to deliver our 2014 objectives { Competitiveness with proven ability to resist in a trouble environment { Clear operational ambitions and enhanced organization { Cost-management action plan } Solid fundamentals to execute our 2
Slide 31: 2014 First-Half Business Review
2014 First-Half Business Review Paris - September 3, 2014