Biomerieux Sa · EURONEXT:BIM
Biomerieux Sa — H1 2017 Earnings Presentation
34 slides from Biomerieux Sa's earnings presentation, Aug 30, 2017
Slide 1: H1 2017 Financial Results
August 30th, 2017 H1 2017 Financial Results
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 markets addressed by bioMérieux. Furthe
Slide 3: Agenda
1 Overview 2 H1 2017 Business Review 3 H1 2017 Financial Results 4 2017 Outlook & Conclusion
Slide 4: bioMérieux: 2016 facts & figures
bioMérieux: 2016 facts & figures + 50 YEARS 2 LEADERSHIP OF EXPERTISE IN POSITIONS IN IN VITRO DIAGNOSTICS + 20 YEARS OF EXPERTISE IN INDUSTRIAL MICROBIOLOGY MICROBIOLOGY CONTROL GENERATE 2/3 OF SALES Sales amounting to A large installed base of 1,500 people €2.1 billion dedicated to R&D 86,900 inst
Slide 5: bioMérieux at a glance
bioMérieux at a glance CLINICAL APPLICATIONS PIONEERING INDUSTRIAL APPLICATIONS 80% of revenues DIAGNOSTICS 20% of revenues to improve public health, especially in the fight against infectious diseases MICROBIOLOGY MOLECULAR BIOLOGY IMMUNOASSAYS To sustainably be the To own the fast growing To be a
Slide 6: bioMérieux provides solutions to manage infectious diseases and improve patient care
bioMérieux provides solutions to manage infectious diseases and improve patient care DEVELOP SYNDROMIC DIAGNOSIS FOR INFECTIOUS DISEASES MANAGE EMERGENCY CONDITIONS DETECT AND CURB ANTIMICROBIAL RESISTANCE PROTECT CONSUMERS’ HEALTH FIGHT AGAINST SEPSIS 7
Slide 7: A full set of solutions to fight against Sepsis
A full set of solutions to fight against Sepsis A medical & Sepsis strikes about Annual sepsis cost Every 3-4 sec economic 30 million someone in the world dies $24b burden people per year worldwide of sepsis (US) DETECTION & IDENTIFICATION SUSCEPTIBILITY & RESISTANCE INFORMATION OF PATHOGENS TO ANTI
Slide 8: H1 2017 Business Review
1 Overview 2 H1 2017 Business Review 3 H1 2017 Financial Results 4 2017 Outlook & Conclusion
Slide 9: H1 2017 key financial figures
H1 2017 key financial figures Net Sales Contributive Operating Income* €1,134 million €172million + 13.3% reported + 15.4% reported + 11.3% organic 15.2% of sales Net Income Leverage 0.6 Gearing 17% €101 million + 18.1% reported 8.9% of sales * Operating income before non-recurring items, before non
Slide 10: H1 2017 highlights
H1 2017 highlights Molecular CE-marking of FilmArray® RP2plus & FDA clearance of FilmArray® RP2 Biology Installed base expansion to 4,800 units FDA clearance of BacT/ALERT® VIRTUO™ FDA clearance of VITEK® MS expanded database Microbiology FDA clearance of Rapidec® Carba NP for the rapid co
Slide 11: H1 2017 sales by geography
H1 2017 sales by geography: strong sales dynamic supported by all regions North America Europe, Middle East & Africa +19.8% +4.1% [38% Group’s sales] [39% Group’s sales] €432m €439m Americas: €514M €185m Asia-Pacific +18.7% +11.4% [45% Group’s sales] [16% Group’s sales] €75m Latin America Group Sale
Slide 12: H1 2017 sales by application
H1 2017 sales by application: solid sales dynamic of all strategic lines Others* Industrial Applications [ +10.2%] €202m 18% €464m Microbiology Group Sales 41% [ +6.8% incl. VITEK® +10%] €1,134m Molecular Biology €218m [ +41.9% incl. FilmArray® ~+60%] 19% +11.3% €233m 20% Clinical applications [€
Slide 13: BioFire FilmArray: a robust growth to continue
BioFire FilmArray®: a robust growth to continue leading the fast growing molecular multiplex market Grow the installed base and its Installed base = 4,800 units (vs. 3,100 in H1 2016) consumption 12RM sales = €320m (vs. €190m in H1 2016) 75% of customers use 2 panels or more Enrich the FilmArray® me
Slide 14: Industrial applications: strong dynamics supported by product offering
Industrial applications: strong dynamics supported by product offering Market Customer bioMérieux growth trends needs drivers in H1 2017 CAGR 6-8%* Globalization Immunoassay VIDAS® FOOD Molecular GENE-UP® Consolidation Consumer Safety Productivity Consistency of QC CAGR 5-7%* metho
Slide 15: H1 2017 Financial Results
1 Overview 2 H1 2017 Business Review 3 H1 2017 Financial Results 4 2017 Outlook & Conclusion
Slide 16: Consolidated P&L as of June 30, 2017
Consolidated P&L as of June 30, 2017 In €m H1 As a % H1 As a % Reported of sales of sales Change % 2017 2016 Net sales 1,134 100% 1,001 100% + 13.3% +11.3%(2) Gross profit 605 53.3% 519 51.8% + 16.6% Contributive operating income (1) 172 15.2% 149 14.9% + 15.4% Operating income 163 14.4% 146 14.5% +
Slide 17: Net sales as of June 30, 2017
Net sales as of June 30, 2017 Organic growth Change in scope of consolidation + €113m Currency effect - €0m + €21m + 11.3% €1,134m USD: +€14m o/w ~half from LatAm: +€6m FilmArray® €1,001m + 13.3% H1 2016 H1 2017 18
Slide 18: Gross profit as of June 30, 2017
Gross profit as of June 30, 2017 Margin improvement Organic growth + €17m + €59m Currency effect* + €10m Sales: + €113m €605m x 51.8% €519m 51.8% 53.3% of sales +€86m of sales + 16.6% H1 2016 + 14.6% H1 2017 * Estimates 19
Slide 19: Contributive operating income as of June 30, 2017
Contributive operating income* as of June 30, 2017 Gross profit SG&A R&D tax - €34m credits, grants R&D & royalties + €86m - €23m income 26.4% (vs. 26.5% In H1 2016) 13.1% - €6m (vs. 12.5% in H1 2016) - expiration of patents €172m €149m 14.9% 15.2% of sales of sales + 15.4% H1 2016 incl. €4m of posi
Slide 20: Net Income as of June 30, 2017
Net Income as of June 30, 2017 In €m H1 As a % H1 As a % Reported of sales of sales Change % 2017 2016 Contributive operating income 172 14.2% 149 13.2% + 15.4% BioFire acquisition related costs -9 - 14 Non-recurring items 0 +10 Operating income 163 14.4% 146 14.5% + 11.9% Net financial expense - 13
Slide 21: Tax rate as of June 30, 2017
Tax rate as of June 30, 2017 H1 2017 H1 2016 French tax rate 34,4% 34,4% Foreign & -0,8% -0,1% reduced tax rates Tax credits -3,6% -3,6% Others (2) 2,2% 1,6% Recurring effective 32,2% 32,3% tax rate Non-reccurring items (2) 2,6% Effective tax rate 32,2% 34,9% (1) Withholding tax, net operating losse
Slide 22: Cash flow statement as of June 30, 2017
Cash flow statement as of June 30, 2017 In €m H1 2017 H1 2016 Contributive operating income 172 149 Depreciation and amortization 70 64 EBITDA (1) 243 213 €21m pay-out of BioFire retention bonus Operating working capital requirement - 57 - 37 Income tax paid - 56 - 41 tax paid in the US Other cash
Slide 23: Summarized balance sheet as of June 30, 2017
Summarized balance sheet as of June 30, 2017 Equity Goodwill (€456m in H1 2016) €455m (€1,510m in H1 2016) Available financing facilities Instruments €102m €300m bond (€81m in H1 2016) ISIN: FR0011592096 October 2013 - October 2020 €1,640m Annual coupon: 2.875% €500m syndicated facility Ot
Slide 24: 2017 Outlook & Conclusion
1 Overview 2 H1 2017 Business Review 3 H1 2017 Financial Results 4 2017 Outlook & Conclusion
Slide 25: 2017 Outlook update
Sales organic 2017 Outlook update Continued positive commercial momentum: growth Solid 11.3% growth at the end of H1 9 to 10% at constant exchange rates Stronger base effect in H2 & scope of consolidation Contributive Operating Income* Better-than-expected FOREX situation in H1 (€4m positive i
Slide 26: bioMérieux is well positioned to address public health needs
bioMérieux is well positioned to address public health needs for the management of infectious diseases Recognition of IVD value to answer growing public health concerns Balanced international Healthy growth of all footprint strategic lines On-going initiatives Sustained commitment aiming at operatio
Slide 27: Ordinary shares and ADR information
Ordinary shares (EUR) ISIN: FR0010096479 Reuters: BIOX.PA / Bloomberg: BIM.FP American Depository Receipt (1:0.1 USD) Reuters: BMXXY.PK / Bloomberg: BMXXY.US 28
Slide 28: The benefits of syndromic multiplex testing of infectious diseases
The benefits of syndromic multiplex testing of infectious diseases Many infectious diseases present as a syndrome but can be caused by a variety of pathogens including: viruses, bacteria, fungi, or parasites. Syndrome = symptoms + signs i.e.: “meningitis syndrome” = headache + fever & neck stiffness
Slide 29: Antimicrobial resistance, a recognized global healthcare challenge
Antimicrobial resistance, a recognized global healthcare challenge Facts & 2/3rd of 50,000 Annual antibiotic resistance cost (US) 2 inappropriate antibiotic deaths / year due to Figures use in respiratory diseases (US) 1 resistant infections (EU & US alone) 1 $20b VIDAS® B•R•A•H•M•S PCT™ expanded
Slide 30: VITEK 2: a cornerstone in the Microbiology Lab workflow
VITEK® 2: a cornerstone in the Microbiology Lab workflow wide range of clinical specimen: ID/AST isolates urine, respiratory, blood, genital, stools, All routine processed with cerebrospinal fluids, etc. clinical ID/AST VITEK® isolates broad spectrum of pathogens and antibiotics available: ID of > 4
Slide 31: Move forward multiyear initiatives to drive profitable and sustainable growth
Move forward multiyear initiatives to drive profitable and sustainable growth Supply chain re-engineer leading to improved KPIs Global Commercial in terms of service and Performance Initiative inventory New CRM tool deployed in 28 countries Profitable and Customer Operational sustainable orientation
Slide 32: Clinical Applications Microbiology
Clinical Applications Microbiology Culture Identification Antibiotic Susceptibility Testing Culture Media API® Galleries Rapidec® Carba NP ChromID® Etest® WASPLab™ VITEK® MS VITEK® 2 (MALDI-TOF) WASP® BacT/ALERT® 3D VITEK® ID cards VITEK® 2 Compact VITEK® AST cards BacT/ALERT® VIRTUO™ To know more a
Slide 33: Clinical Applications Immunoassays and Molecular Biology
Clinical Applications Immunoassays and Molecular Biology Immunoassays Molecular Biology miniVIDAS® easyMAG® and eMAG® VIDAS® 3 eSTREAM™ VIDAS® FilmArray® VIDAS® reagents reagents FilmArray® 2.0 bioNexia™ and VIKIA® rapid tests FilmArray® Torch To know more about the whole bioMérieux offer in clinica
Slide 34: Industrial Applications
Industrial Applications Food Pharma & Cosmetics Blue Line™ MASTERCLAVE® BacT/ALERT® sample preparation culture media preparation 3P® platelet microbial safety environmental monitoring Chromogenic Media BioBall® GENE-UP® Pathogen detection and method validation PCR pathogen detection enumeration EviS