Eurofins Scientific Se · EURONEXT:ERF
Eurofins Scientific — Investor Day (October 2016)
111 slides from Eurofins Scientific's investor day presentation, Oct 20, 2016
Slide 1: Eurofins: A global leader in bioanalytical testing
Eurofins A global leader in bioanalytical testing in the food, environment and pharmaceutical sectors Consistently delivering strong, sustainable, profitable growth Doubled revenues more than 3 times (every 3 years on average) since 2004 Sales & EBITDA Multiplied by more than 10 times since 2004 Dr.
Slide 2: Disclaimer
Disclaimer The statements made during this presentation or as response to questions during the Question & Answers period that are not historical facts are forward looking statements. Furthermore, estimates and judgements may be made based on market and competitive information available at a certain
Slide 3: Contents
Contents Introduction Market & Strategic Positioning Finance & Outlook Summary Appendix Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 3
Slide 4: 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 Founded in 1987 IPO in 1997 in Paris at EUR 1.83 per share Eurofins provides testing Network of over 250 laboratories in 39 countries services in four main areas Over 130,000 reliable analy
Slide 5: Eurofins ranking
Leading global and local market positions* N°1* N°1 to N°3* N°1* Start-Up worldwide worldwide worldwide Start 2014 Start 1987 Start 2000-2005 Start 2000 Food & Feed Testing for Environment Clinical Testing Pharma/Biotech Testing Diagnostics *Total market size ~ EUR 2-3bn ~ EUR 5bn ~ EUR 4bn ~ EUR 16
Slide 6: Drivers for long-term market growth
Drivers for long-term market growth Secular Underlying Fundamentals General Market Drivers Laboratory Market Drivers Consumer Demand for safe Increasing wealth expectations for pharmaceuticals, quality food and quality of Life protection and clean environment Consolidation of the fragmented laborato
Slide 7: Eurofins is set to reinforce its global market leadership
Eurofins is set to reinforce its global market leadership Eurofins Growth Cycles * Company objectives ** Preliminary objective Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 7
Slide 8: Organic growth compared with larger peers
In spite of its lower cyclicality, Eurofins generates comparable organic growth to its larger peers in each peak of the cycle, and higher growth when the economy slows TICS Organic Growth 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% '00-'04 '05-'12 2013 2014 2015 H1 2016 ERF TICS ex ERF Source: Eurofins, Co
Slide 9: And has comparable financial discipline
And has comparable financial discipline TICS Leverage Ratios Source: Bloomberg, company accounts Leverage ratio = net debt / estimated LTM EBITDA as of 30 June 2016 ** June 2016 actuals corrected for the issuance of 800,000 shares to institutional investors in September 2016 for net proceeds of EUR
Slide 10: Valuation in the context of growth prospects
Valuation in the context of growth prospects EV/EBITDA 2017 and Consensus Earnings Growth Estimates Source: Bloomberg For Eurofins, based on Eurofins 21/09/2016 press release (Bloomberg multiples for Eurofins: 2016 17.3x, 2017 15.6x) Based on closing prices 28 September 2016 Title: Eurofins Corporat
Slide 11: Growth prospects could provide additional upside
Growth prospects could provide additional upside EV/EBITDA 2017 and PEG Multiples Source: Bloomberg, Eurofins Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 11
Slide 12: Group performance reflects strong underlying fundamentals
Group performance reflects strong underlying fundamentals Strong Growth Momentum Profit improvements alongside revenue growth acceleration H1 2016 / H1 2013: 12.0% 50% Adjusted EBITDA margin +160 bp 45% Reported EBITDA margin +374 bp Total Revenue Growth (blue curve) 10.0% 40% Organic Growth (orange
Slide 13: Achievement of 2017 financial objectives 2 years early
Achievement of 2017 financial objectives 2 years early Eurofins 5 year Report Card: 2010-2015 CAGR H1 2016: Strong growth & operating momentum Achievements in 2015 H1 2016 Close to 7.5% organic growth 44% revenue growth to EUR 1,208m versus 5% objective 39% increase in adjusted EBITDA Over 1
Slide 14: EBITDA impact of start-up and restructuring scope is decreasing
EBITDA impact of start-up and in-restructuring scope is decreasing Proportion of revenue contribution from start-ups & Associated separately disclosed items (SDI*) EBITDA businesses in significant restructuring impact relative to EBITDA of mature companies 16% 18% 20% 16.5% Group Adjusted 15.9% EBIT
Slide 15: Heaviest restructuring already completed
Heaviest restructuring already completed Evolution of the SDI components within each year Clear, consistent progress in reducing losses from start-ups and getting them to profitability throughout the year € 20m € 15m € 10m € 5m €m -€ 5m H1 2012 H2 2012 H1 2013 H2 2013 H1 2014 H2 2014 H1 2015 H2 2015
Slide 16: Objective to double in size again by 2020
Eurofins’ objective is to double in size again by 2020, after doubling 3 times in the last 11 years since 2004 Strong historical growth achievement €4,000 * Objective ** Preliminary objective Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PR
Slide 17: New midterm objective: double revenues in 5 years
New midterm objective: To double revenues in 5 years (between 2015 and 2020) Illustration of Eurofins’ 2020 growth objectives assuming constant/linear acquisition volume and growth rate each year * Objective ** Preliminary Objective Title: Eurofins Corporate Presentation Document name: Corporate Pre
Slide 18: Midterm objective of 20% adjusted EBITDA margin
Midterm objective to reach 20% adjusted EBITDA margin, and strengthen cashflow generation Eurofins Cashflow Expansion Levers Objectives: • Reduce relative impact of start-ups and SDI • Bring capex back to 6% of revenues Start-ups & businesses in significant restructuring is Separately Disclosed Item
Slide 19: Investments for future growth have had an impact on cash flows
Investments for future growth have had an impact on cash flows Cashflow expansion levers: cash investments impacting cashflows FCF invested for the future €75m €81m Reported FCF €57m €19m €19m *Free Cash Flow - Operating Cash Flow, less interest paid and net cash used in investing activities other t
Slide 20: 23 Acquisitions performed as of mid-September 2016
23 Acquisitions performed as of mid-September 2016 23 Acquisitions signed in 2016 as of September 21, 2016 2015 Revenues Eurofins Investment spend (LCm, Actual) (LCm) 1 Sinensis Life Sciences EUR 13.5 2 Biotech Germande 3 ams Laboratories EUR 5 4 Advantar Laboratories USD 8 5 PerkinElmer’s NTD labor
Slide 21: Meaningful industry consolidation is underway
Meaningful industry consolidation is underway Selection of recent significant transactions in the testing industry Date Company Acquirer Geography Sales (€m) EV (€m) EV/Sales (x) EV/EBITDA (x) 2016 January WIL Research Charles River US 194 527 2.7x 13.0x 2015 December Element Materials Technology Br
Slide 22: Network Build-Out to Position for the Future
Network Build-Out to Position for the Future Faster site roll-out drives capex acceleration € 180m 55,000m2 of modern lab surface delivered in 2015, € 160m versus plan of 40,000m2 and following the 60,000m2 delivered in 2014 € 140m Strong progress in IT systems deployment € 120m First Generati
Slide 23: International network of world class laboratories
An international network of world class, standardised laboratories is attractive for our customers H1 2016 revenue split : N. America 32.0% France 26.0% Germany 10.8% Benelux 7.4% Nordic Region 6.8% Entry into high-growth UK & Ireland 4.3% markets with start ups Others 12.7% & acquisitions 80% of th
Slide 24: Geared towards strong economies and fast-growing markets
Geared towards strong economies and fast-growing markets Geographical breakdown of Eurofins’ revenues in H1 2016 Germany Benelux Germany USA Germany UK Total France Italy Spain TOTAL Austria Nordics + + Northern Europe & Excluding Portugal Switzerland (Northern Northern APAC USA Ireland France & Eur
Slide 25: Strategy aims at building long lasting competitive advantages
Eurofins’ strategy aims at building long lasting competitive advantages 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 Proprietary technologies for proof of compliance i
Slide 26: Contents
Contents Introduction Market & Strategic Positioning Finance & Outlook Summary Appendix Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 26
Slide 27: The Food testing market has robust growth drivers
The Food testing market has robust growth drivers Food scares and Globalisation: Raw Consumers’ Outsourcing of crises, widely materials sourced increasing awareness industry’s covered in the from countries and demand for safe internal or state- media with different QC and high quality food owned pra
Slide 28: Food & Feed testing offering is the most comprehensive
Eurofins’ Food & Feed testing offering is the most comprehensive in the market Agricultural production, product Production Retail & Distribution development Microbiology Sensorial Dioxins Veterinary drug Vitamins Quality Control residues Authenticity Pesticides Organic residues POPs Labelling GMO My
Slide 29: High profile food scares have expensive consequences
High profile food scares have expensive consequences for producers… Year Brand/ Contamination Impact Cost Country 2008 Sanlu/ Melamine in 50,000 infants ill, 6 deaths, global recall of Fronterra + dairy products dairy and related products, criminal Unquantified BBC News global brands charges in Chin
Slide 30: Eurofins is meeting the demands of global players
Eurofins is meeting the demands of global players The largest global food & beverage producers and retailers are clients of Eurofins 2015 Sales in 2015 Sales in Food and Beverage Retailers EUR billion EUR billion Nestlé Switzerland 82.1 Wal-Mart Stores USA 437.0 PepsiCo USA 57.6 CostCo USA 103.8 U
Slide 31: The Pharma testing market is healthy and full of potential
The Pharma testing market is both healthy and full of potential Need for big pharma Rapid technological change & companies to expand increasing complexity in testing new drugs pipelines require ongoing investment in technology & expertise The increasing complexity of clinical trials leads to incre
Slide 32: Underlying trends are intact for continued growth
Underlying trends are intact for continued growth Global Drug R&D Spending (US$ bn) Large pharmas need to refill their product pipeline as the ‘blockbusters’ start to come off patent Drug development expenditures have increased substantially in recent years Total R&D is over USD 120bn and is e
Slide 33: Eurofins Pharma Services
Eurofins Pharma Services Spanning the entire drug development cycle Genomics Discovery Pre-clinical / Clinical Pharma Pharmacology Early (Central Products Development Laboratory) Testing / cGMP QC Sequencing High-throughput- Pharmacology Biomarkers Impurities Analysis Cardiovascular Oligonucleotides
Slide 34: 9 of the top 10 pharma companies are clients
9 of the top 10 largest global pharmaceutical companies are clients of Eurofins Eurofins pharma locations Top 10 pharma companies Country Global CRO Market Market Pfizer USA CAGR* Breakdown Sanofi Aventis France GlaxoSmithKline UK USA 60% 12% Novartis Switzerland Europe 20% 9% AstraZeneca UK Merck &
Slide 35: Specialized Clinical Diagnostic Evolution
Eurofins Specialized Clinical Diagnostic Evolution “Genomics is one of the key technologies enabling personalized medicine…” Establishing platform to deploy genomics expertise for development of innovative clinical diagnostic tests to serve global healthcare commnunity One of the world’s leaders in
Slide 36: Specialized Clinical Diagnostic Footprint
Eurofins Specialized Clinical Diagnostic Footprint Establishing leadership in targeted higher-growth niche areas of the clinical testing market Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 36
Slide 37: The Environmental testing market continues to grow
The Environmental testing market continues to grow Rise in Progress in epidemiology contamination & & medicine has identified pollution issues more compounds as toxic Increasing demand by citizens for a clean environment EU expanding regulation (e.g. REACH) Increasingly long list of products i
Slide 38: Eurofins serves all the main environmental testing markets
Eurofins serves all the main environmental testing markets Eurofins is the No.1 environmental testing service provider in the world* Lancaster Environmental Consulting and Testing is the laboratory sampling companies of choice for Fortune 500 are natural partners companies in the USA WATER AIR SOIL
Slide 39: Global trends in regulation support the business
Global trends in regulation support the business Strong regulated markets (EU, USA) are still amending and adding regulations Eastern European rules catching up with EU Fast development of regulation in Asia Regulation used for support of trading blocks (e.g. EU, NAFTA, ASEAN) Major pieces o
Slide 40: EU regulations a key driver for the testing industry
EU regulations a key driver for the testing industry – e.g. REACH directive Objectives Examples of affected products or industries Listing and assessing the safety of 30,000 Metals, resins, acids, solvents, oils, fibres in textile, car chemical substances used by industries in components, toys, co
Slide 41: Outsourcing adds to market growth
Outsourcing adds to market growth Examples of laboratories outsourced to Eurofins Company Outsourced Activity Country Danish Hydrology Inst. Official water reference lab Scandinavia Suez/Sita Envirolab The Netherlands Danish farmers association Steins’ water/environment laboratory Denmark Southern W
Slide 42: Eurofins' strategy builds high Barriers to Entry
Eurofins’ strategy builds high Barriers to Entry Offering a premium quality service … ... and leveraging internal efficiencies Portfolio: over 130,000 validated methods Industrialising the laboratory process: – unique in the world and ahead of rationalisation of sites and personnel competition
Slide 43: Contents
Contents Introduction Market & Strategic Positioning Finance & Outlook Summary Appendix Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 43
Slide 44: Laboratory Network Investments (1/2)
Laboratory Network Investments (1/2): 2014-2017 35 Greenfield projects in high-growth markets Country Market Operational achievements Hong Kong Food India Food, Agro Group: First wave of start-ups (17) became Asia Australia Env profitable as a whole in 2013 New Zealand Food, Agro Launch of 2nd start
Slide 45: Laboratory Network Investments (2/2)
Laboratory Network Investments (2/2): Expansion / Modernization of Laboratory Sites 115 new/expanded modern state-of-the-art sites to enable consolidation / closure of smaller or old sites Total of ca. 350,000 m2 added or brought to most modern standards between 2005-2015 (55,000 m2 in 2015 alon
Slide 46: Market Share: Eurofins is the leader in its industry
Market Share: Eurofins is the leader in its industry – and we continue to reach new market leadership positions* New Markets 20012002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 X = Market Entry Denmark: Food and Env. X No 1 Brazil: Food Testing X No 1 France Environment Testing
Slide 47: Heavy investment in new markets and resources
Heavy investment in new markets and resources for future profits Building corporate resource Bringing recently acquired Under development perimeter for future size and growth labs to group standards Start-ups: 17 start ups Recruitment of top Deploy IT systems between 2006 and 2010 and 21 leade
Slide 48: Positive trends drive solid operating results
Positive trends drive solid operating results H1 2016 H1 2015 Year on EUR m Adjusted Separately Reported Adjusted Separately Reported year Results disclosed results Results disclosed results evolution of items items Adjusted Results (%) Revenues 1,208.4 1,208.4 841.9 841.9 +43.5% EBITDA 216.6 -5.6 2
Slide 49: Investments for future growth have an impact on profits
Investments for future growth have an impact on profits Cost of financial flexibility – Month-end Cash on Balance Sheet H1 2014 FY 2014 H1 2015 FY 2015 H1 2016 Average Month-end Excess Cash EUR 205m EUR 183m EUR 473m EUR 585m EUR 579m Impact on Basic EPS EUR 0.16 EUR 0.25 EUR 0.27 EUR 1.43 EUR 0.45
Slide 50: Prioritizing Group tax optimum structuring
Prioritizing Group tax optimum structuring to align with scale and footprint Review of tax optimum structure, and use of NOLs carry forward Not capitalised tax losses carry forward (NOLs) of over EUR 470m as of 31.12.2015 Tax rate increase due to new clinical & US businesses acquired in 2014-201
Slide 51: Growth and Profitability are critical objectives
Growth and Profitability are critical objectives Group Profitability Objectives 3-tiered margin support towards mid-term profitability objective 1. Start of profit contribution from start-ups 2. Exceptional costs and losses from start- ups and companies in restructuring (SDI) becoming smaller comp
Slide 52: Solid Balance Sheet
Solid Balance Sheet June June 2016 Dec OBSAAR 2016 corrrected** 2015 Max EUR 58.6m due in June 2017 Net Debt/ LTM Adjusted 1.88 x 1.20 x 2.54 x 3.5 x EBITDA Hybrid Net Debt/ProForma LTM 1.81 x 1.16 x EUR 300m hybrid issued in Jan 2013/Jul 2014, Adjusted EBITDA callable at par by Eurofins in
Slide 53: High Degree of Financial Flexibility
High Degree of Financial Flexibility Strong Balance Sheet Net Debt/ Adjusted EBITDA: max 3.5x Leverage ratio well below covenant limit despite EUR 183m* cash invested in the business in HY 2016 Large financial flexibility with fairly long debt maturity • OBSAAR issued in 2010; remaining EUR 58.6
Slide 54: Strong financial discipline at all times – 1/2
Strong financial discipline at all times – 1/2 Year end net debt/LTM adjusted EBITDA and pro-forma adjusted EBITDA to fully account for contribution of companies paid for during the year Covenant Limit 3.5x 21 acquisitions with total annualized revenue contribution of over EUR 570m. Entry into 3
Slide 55: Strong financial discipline at all times – 2/2
Strong financial discipline at all times – 2/2 Average net debt/LTM EBITDA Covenant Limit 3.5x 21 acquisitions with total annualized revenue contribution of over EUR 570m. Entry into 3 new countries 10 start-ups Acceleration of internal restructuring and 55,000m2 of lab surface added reorganization
Slide 56: Outlook: becoming the world leader in bioanalytical testing
Outlook: becoming the world leader in the bioanalytical testing market Sustainable Market Growth Drivers + Key Success Factors = Solid Outlook Food safety & contamination Unique technological portfolio of 2016 Objectives issues over 130,000 methods EUR 2.5bn of revenues Adjusted EBITDA objec
Slide 57: Contents
Contents Introduction Market & Strategic Positioning Finance & Outlook Summary Appendix Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 57
Slide 58: 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 protection mega-trends No. 1 or 2 worldwide in most business lines Advancing globalisation but with very few global Strong international presence
Slide 59: Appendix / Back up slides
Appendix / Back up slides Title: Eurofins Corporate Presentation Document name: Corporate Presentation October 2016.ppt EDR: 1-C-IR-PRE-01390290 Document owner: EUROFINS 59
Slide 60: Consolidated Income Statement
Consolidated Income Statement H1 2016 H1 2015 Separately Separately Adjusted Reported Adjusted Reported EUR Thousands disclosed disclosed results results results results items items Revenues 1,208,397 - 1,208,397 841,907 - 841,907 Operating costs, net -991,813 -5,560 -997,373 -699,691 -10,134 -709,8
Slide 61: Consolidated Balance Sheet
Consolidated Balance Sheet As of As of June EUR Thousands December 30, 2016 31, 2015 Property, plant and equipment 443,008 427,541 Goodwill 1,473,820 1,411,896 Other intangible assets 364,170 351,469 Investments in associates 13,259 14,926 Financial assets and other receivables 31,060 32,074 Deferre
Slide 62: Consolidated Cashflow Statement
Consolidated Cashflow Statement EUR Thousands H1 2016 H1 2015 Cash flows from operating activities Profit before income taxes 95,634 46,542 Adjustments for: Depreciation and amortisation 67,140 50,278 Non-cash stock option charge and acquisition-related expenses, net 17,616 15,825 Other non-cash eff
Slide 63: Eurofins has vastly outperformed the market since its IPO
Eurofins has vastly outperformed the market since its IPO and each of its 3 equity offerings (based on share price of EUR 333.60 as of 30 June 2016) Total equity raised in 4 offerings: only EUR 56m Since IPO Eurofins: +18,136% (32% CAGR) CAC 40: +53% (2% CAGR) SBF 120: +78% (3% CAGR) S&P 500: +139%
Slide 64: Shareholder Returns: TICS & Clinical Diagnostics Companies
Shareholder Returns: TICS & Clinical Diagnostics Companies Based on Eurofins share price of EUR 321.85 at 31.12.2015 Table 1 Shareholder Returns Based on share prices Total Shareholder Returns (RI) 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14 31-Dec-15 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31
Slide 65: Shareholder Returns: TICS & Clinical Diagnostics Companies
Shareholder Returns: TICS & Clinical Diagnostics Companies Based on Eurofins share price of EUR 321.85 at 31.12.2015 – Last 5 Years Table 2 HISTORICAL SHARE PRICE DEVELOPMENT Annual Growth - Compounded* 5 Yr From Dec 31 Y-1 to Dec 31 Y Historical 1 Year Performance* Growth 2 years 3 Years 4 Years 5
Slide 66: Eurofins Valuation
Eurofins Valuation Scenario for potential Eurofins EV/EBITDA 2016 and 2017 assuming achievement of objectives No of Shares ('000) 16,862 16,062,000 shares as of 31 August 2016, plus 800,000 issued in the equity raise of 8th September 2016 Hybrid Capital (m) EUR 600 Earn-outs (m) as of 30/06/2016 EUR
Slide 67: Valuation multiples overview
Valuation multiples overview EV/EBITDA Multiples Valuation Multiples Currency Closing Price 2016 2017 SGS CHF 2152 13.8 x 12.9 x ITK GBP(p) 3488 13.2 x 12.2 x BV EUR 19.05 11.6 x 11.2 x Applus EUR 8.82 9.6 x 9.4 x Exova GBP(p) 200.63 10.4 x 9.9 x Idexx USD 113.41 26.5 x 24.6 x Charles River USD 83.5
Slide 68: Post acquisition and integration, sales and profits increase
Post acquisition and integration into Eurofins, both sales and profits increase significantly Illustration Growth drivers post acquisition: 1) Sales increase through cross selling of Actual example of an acquired lab: Eurofins lab specialities internationally 2) Cost reduction – focus on most freque
Slide 69: Eurofins Scientific: The Reference in Food & Feed Testing
Eurofins Scientific The Reference in Food & Feed Testing Eurofins Hamburg Investor Day 2016 Dr. Markus Brandmeier Group Executive VP, Food Testing Europe & LatAm www.eurofins.com 69
Slide 70: Contents
Contents I – Eurofins Food & Feed Testing Germany and Hamburg II – Key Success factors in Food & Feed Testing III – Example Pesticide Residue Testing IV – Conclusion and Outlook 70
Slide 71: Contents
Contents I – Eurofins Food & Feed Testing Germany and Hamburg II – Key Success factors in Food & Feed Testing III – Example Pesticide Residue Testing IV – Conclusion and Outlook 71
Slide 72: Eurofins Food & Feed Testing Division in Germany
Eurofins Food & Feed Testing Division in Germany 72
Slide 73: Eurofins Hamburg - Facts and Figures
Eurofins Hamburg - Facts and Figures Revenue: > 50% of total revenues of Eurofins Food & Feed Testing in Germany Current laboratory size: 20 000 m2 Planned laboratory size by 2019: 35 000 m2 Number of employees: > 750 1,2 million samples tested (in 2015) Laboratory organisation according
Slide 74: Eurofins Hamburg – Campus 2016
Eurofins Hamburg – Campus 2016 IT Analytik IT + Administration WEJ-Contaminants Global Control Sample Storage GfA Labservice Consumer Product Testing National Service Center Biotesting Services Nord WEJ-Contaminants Food Control Services Analytik and GfA Labservice : Sales, Customer Service 74
Slide 75: Eurofins Hamburg Sites: Extension Campus 2019
Eurofins Hamburg Sites: Extention Campus 2019 Dr. Specht Agroscience Services Chem Laboratorien BioPharma Product Testing 75
Slide 76: Eurofins Germany – Market Position
Eurofins Germany – Market Position Market Position Germany – Food & Feed Testing Eurofins is the leader in Food & Feed Testing in Germany (>> 1 000 FTE) Ca. 3x bigger than the second-ranked player in the German market (in terms of turnover) Nearly all large retailers and food producers are Eur
Slide 77: Contents
I – Eurofins Food & Feed Testing Germany and Hamburg II – Key Success factors in Food & Feed Testing III – Example Pesticide Residue Testing IV – Conclusion and Outlook 77
Slide 78: Food & Feed Testing is highly complex and specialised
Food & Feed Testing is a highly complex and specialised business Criteria of Testing Legal regulations (very often differing per country) Customer regulations (often stricter than legal regulations) Compliance to expectations of NGOs Specifications of food producers Food & Feed Testing is
Slide 79: Eurofins monitors the complete Food Chain
Eurofins monitors the complete “Food Chain” Customers Farmers Farmers Farmers Food Producers Food Retailers Catering Trade Trade Asscociations Trade Asscociations Food Manufacturers Food Manufacturers Restaurants Asscociations Chemical/Pesticide Food Producers Food Suppliers Companies Food Producers
Slide 80: Eurofins benefits from a growing and demanding marketplace
Eurofins benefits from a growing and increasingly demanding marketplace Global Trends Direct consequences Impact on Marketplace Position Eurofins Testing becomes even Consumer More national regulations more complex expectations for safety and quality increasing Excellent expertise in products and
Slide 81: Network organized to strengthen competitive advantages
Eurofins’ network is organized to continuously strengthen competitive advantages Large Number of Samples Laboratory Gain Market Gain Market Specialization Shares Shares by organically acquisition Competence Process Scale Latest Automation Expertise Centres + Optimization effects Technology Local Lab
Slide 82: Process flow Food & Feed Testing
Process flow Food & Feed Testing Simplified process visualization of a Eurofins laboratory Sample Validation Sample Preparation/ CleanUp Measurement Analysis & Registration Homogenisation Reporting Parcel Reception Sample Grinding Further sample GC-MS/MS Evaluation of Credibility check o
Slide 83: Target State / Vision
Target State / Vision People, machinery, equipment, logistics and product samples communicate directly with each other and change into a self-organizing lab where intelligent IT helps people to make decentralized and fast decisions. Sample Validation Sample Preparation/ CleanUp Measurement Analysis
Slide 84: Example Lab Automation at WEJ - Contaminants
Example Lab Automation at WEJ - Contaminants: Department Mycotoxins & Biotoxins Standalone Food & Feed Sample Preparation System: Idea & Concept: automation of the S3 process for food & feed samples 24h runtime high throughput of up to 400 samples/day versatile (matrices & methods) easy „s
Slide 85: Innovation will transform customer experience
Being innovative in the way Eurofins operates will transform customer experience Reduction of personnel involvement from 80% to under 30% in the future More and better Cost structure changes technical equipment massively away from than competitors personnel cost Customers only need Manual
Slide 86: Eurofins bundles expertise in Competence Centers
Eurofins bundles expertise in Competence Centers Optimized logistics and infrastructure Laboratory Country 1 Laboratory Laboratory Country 2 Country 6 Competence Centre Laboratory Laboratory Country 3 Country 5 Laboratory Country 4 Fast and reliable service 86
Slide 87: Competence Center Strategy
Eurofins’ Competence Center Strategy Typical Laboratories Eurofins-Network of Competence Centres (CC) Depth of Specialist Know-how & Service Specialist in many areas Specialist offer ‘Multi-Specialist’ in one area XY Breadth Routine of service Analysis Depth of Generalist Breadth of Know-how service
Slide 88: Structured by Competence Centres and Local Laboratories
Eurofins Food & Feed is structured by Competence Centres and Local Laboratories Pesticides Heavy Metals & GMO Trace Elements Dioxins, Radiation Furanes & PCBs Customer Veterinary Allergens Drugs FOOD & FEED Testing Microbiolo Mycotoxin gy s Access to all Core Local Eurofins Competencies of the Labor
Slide 89: Food & Feed Testing Competence Centres
Eurofins Food & Feed Testing Competence Centres Core competences Eurofins Food Competence Centres Authenticity / Isotopic analysis Eurofins Analytics, Nantes (France) Pesticides Eurofins | Dr. Specht Laboratories, Hamburg (Germany) Vitamins Eurofins | Steins Laboratories, Vejen (Denmark) Amino Acids
Slide 90: Optimal response and solution to all types of customer
Optimal response and solution to all types of customer Large Global Customers Local Support at customers’ facilities Harmonized global offer / standards Largest capacities especially in case of crisis Eurofins’ network of Local Customers Competence Centres Local lab with close proximity whic
Slide 91: Scientific know-how in databases is the differentiating success factor
Excellent scientific know - how transferred into databases and systems is the real differentiating success factor Example : Pesticide Residue Testing Eurofins Competence Center Dr. Specht Laboratorien 91
Slide 92: Contents
I – Eurofins Food & Feed Testing Germany and Hamburg II – Key Success factors in Food & Feed Testing III – Example Pesticide Residue Testing IV – Conclusion and Outlook 92
Slide 93: Pesticide Residue Analysis Competence Center
Pesticide Residue Analysis Competence Center Eurofins Dr. Specht Laboratories Dr. Manfred Linkerhägner Cluster Manager General Chemistry Labs Germany www.eurofins.de
Slide 94: Analysis at the level of 1 bee in a 747
Dr. Specht Laboratories analyzes on the level of „1 bee in a 747“ (1 ppb) A small example what residue analysis means... The Captain Boeing 747 Max. permissible total weight : 80 kg Max. permissible total weight : 400 t = concentration of 200 mg/kg (~ 200 ppm) A Bee on the cockpit window The Captain
Slide 95: Unique Expertise in Pesticide Residue Analysis
Dr. Specht Laboratories - Unique Expertise in Pesticide Residue Analysis The biggest Lab in the world specialized on Pesticide Residue Analyses Pesticide Residues from Abamectin to Zoxamide Commodities from Apple to Zucchini Scope up to 600 Pesticides in GC+LC Multimethods plus complementary Group-
Slide 96: Dr. Specht Laboratories – History
Dr. Specht Laboratories – History 1946 - Trading Laboratory founded by Dr. Körl 1960 - Dr. Specht joined the company 1964 - Purchase of first GC (ECD+FPD) for pesticide residue analysis 1990 - First authorization to perform pesticide residue analysis according to Good Laboratory Practice (GLP) 1995
Slide 97: Dr. Specht Laboratories Key Facts
Eurofins Dr. Specht Laboratories Key Facts > 200 FTE Percentage of scientists: 30 % Diploma Chemists Analytical Chemists Diploma Food Chemist Graduated Chemical Engineers Diploma Agronomists 20 scientists with PhD Laboratory space: ~ 3600 m2 > 150 GC + LC Measurement systems (CAPEX value: >
Slide 98: Key Customers
Key Customers (direct or via samples subcontracted by other Eurofins Labs) Most global Food Producers Most relevant retailers in Europe Biggest producers of tea Majority of tobacco industry Importers of fruits and vegetables Baby food industry Pharmaceutical industry (GMP-standard) 98
Slide 99: Competences Dr. Specht Laboratories
Competences Dr. Specht Laboratories Decades of experience and competence in the field of pesticide residue analyisis Use of state-of-the-art technology Broad range and diversity of products Fast analysis (12 - 24 h) Close cooperation with international project partners/customers Developm
Slide 100: Involvement in committees and working groups
Dr. Specht Laboratories is actively involved in the relevant committees and working groups Collaboration in scientific working groups: Active member in DIN/CEN German Chemical Society (GDCh) Federal Office of Consumer Protection and Food Safety (BVL) Federal Institute for Risk Assessment (Bf
Slide 101: Globally unique competence of Dr. Specht Laboratories
Globally unique competence of Dr. Specht Laboratories By Dr. Specht Unique competence in Laboratories developed evaluation of results Methods Specialization Data of nearly In total ~400 specific on Pesticides 500.000 samples of all methods Residue products / origins in Highest levelof scientif
Slide 102: Example for competence in product: Tea
Example for competence in product: Tea Eurofins Dr. Specht Laboratories is analyzing more than 12.000 tea samples annually: Active member in German and European tea committees (TEE, WKF, THIE) Customers around the globe Familiar with tea planting, growing, processing, blending, packaging, ship
Slide 103: For tea Dr. Specht benefits from WEJ - Contaminants
For tea Dr. Specht beneftis extensively from the competence and portfolio of WEJ - Contaminants Competence Center Competence Center Dr. Specht Laboratories WEJ - Contaminants Mineral Oils (MOSH/MOAH) Pesticides Rare Earth Metals Desinfectans (QACs) Heavy Metals Anthraquinone Fluoride
Slide 104: EVA – Example of an integrated data platform
EVA – Example of an integrated data platform Meaning EVA: Evaluation Platform Main functionalities: - to show at a glance all results for a given sample obtained from different chromatographic Instruments - to enable the operator to select results for final reporting - to compare results with:
Slide 105: EVA – Evaluation Platform (1/4)
EVA – Evaluation Platform (1/4) A A E G K L M N R T ML120927/28 105
Slide 106: EVA – Evaluation Platform (2/4)
EVA – Evaluation Platform (2/4) A A E G K Sample information (sample code, matrix, client, # of tests, L M Retailer specific N stati, due date …) R T evaluation Traffic light evaluation: based on historical data Legal limits: Detected Measured values: parameters: per injection - EU MRL´s
Slide 107: EVA – Evaluation Platform (3/4)
EVA – Evaluation Platform (3/4) Clicking the small arrows will let the rows hide or show up Hint: this parameter can be detected on additional detections systems (color coded) Boscalid was detected in 201 out of 1074 fresh strawberry samples Boscalid was detected in 9 out of 16 fresh strawberry samp
Slide 108: EVA – Evaluation Platform (4/4)
EVA – Evaluation Platform (4/4) A A E G K L M Direct export of selected data to eLIMS system N R T Report 108
Slide 109: Contents
I – Eurofins Food & Feed Testing Germany and Hamburg II – Key Success factors in Food & Feed Testing III – Example Pesticide Residue Testing IV – Conclusion and Outlook 109
Slide 110: Conclusion and Outlook
Conclusion and Outlook Leading market position and Customer focused organization Leading scientific know-how stringent development of of Eurofins labs ensures best captured into IT systems makes operational excellence will create service for all types of customers Eurofins Service more and more cont
Slide 111: Thank you for your attention
Let‘s see this all in practise in the visited Labs Eurofins Analytik Eurofins GfA Labservice THANK YOU FOR YOUR ATTENTION 111