bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2011 Earnings Presentation
48 slides from bioMerieux SA's earnings presentation, Mar 14, 2012
Slide 1: 2011 Financial Results
2011 Financial Results Strategic Initiatives & 2012 Operational Ambitions Paris - March 14, 2012
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 2011 Operating Performance 2011 Financial Results Strategic Initiatives and 2012 Operational Ambitions Objectives and Conclusion
Slide 4: Solid 2011 performance: preparing for bioMérieux's future
Solid 2011 performance Preparing for bioMérieux’s future Effective strategic positioning 2 highly selective acquisitions • AES Laboratoire, fully dedicated to industrial applications • ARGENE, specialized in molecular diagnostics for immunocompromised patients Reinforced # 1 position in clinical mic
Slide 5: Solid 2011 performance: strong achievements
Solid 2011 performance Preparing for bioMérieux’s future Strong achievements Resistance in a deteriorated economic context: bioMérieux’s sales up 4.1%* Solid financials • Operating income before non-recurring items: €258m - 18% of net sales • Free cash flow generation: €118m Rapid expansion of the i
Slide 6: Solid 2011 performance: 2 highly selective acquisitions
Solid 2011 performance 2 highly selective acquisitions AES Laboratoire, building the world leader in food testing €31m revenues since acquisition, 385 FTE Upsides • Commercial: highly complementary product lines, leveraging bioMérieux’s global customer base • Production: capabilities for custom prod
Slide 7: 2011 Sales: resistance in a deteriorated economic environment
2011 Sales Resistance in a deteriorated economic environment North America: + 5.4% EMEA*: - 0.4% 53% 22% €1,427m 16% + 6.5%, currency neutral + 4.1%, organic growth 9% Latin America: + 15.5% Asia-Pacific: + 12.2% Emerging countries: ~ 27% of sales, > 50% of Group’s growth Growth rates at constant ex
Slide 8: 2011 Sales: effective strategic positioning
2011 Sales Effective strategic positioning A highly diversified company Microbiology 2011 % Change 52% Clinical Applications €1,177m + 4.0% Other €16m Microbiology €737m + 8.2% (a) Molecular 5% Immunoassays €355m - 0.6% Biology (b) Molecular Biology €69m - 9.0% Industry Industrial Applications €250m
Slide 9: 2011 Microbiology market share
2011 Microbiology market share Growing leadership Strong increase in bioMérieux’s market share ~42% ~30% ~22% ~31% ~30% ~26% ~ 10% ~9% 2006 2011 Becton Dickinson Siemens Other Proven ability to maintain our leadership position * bioMérieux estimates based on internal analysis and on a report from a
Slide 10: 2011 Rapid expansion of our installed base
2011 Rapid expansion of our installed base Installed base - number of instruments Analysis of 2011 sales 64,800 (1) + 4,900 Instruments 11.8% 12.6% Instruments Growing at ~ 8% 59,900 Services and Other 5.2% 5.6% 55,700 53,100 Reagents and 49,200 Reagents 83.0% 81.8% Services Growing at > 4%* 2007 20
Slide 11: Solid 2011 performance: continuous focus on innovation
Solid 2011 performance Continuous focus on innovation Sample Prep Station VITEK® 2 Enhanced commercial offer Successful launch of VITEK® MS 24 new reagents New service offer Streamlining of the rapid diagnostic offering Launch of a new MYLA® version and further geographic expansion New CE-marked VIT
Slide 12: Overview
Overview 2011 Operating Performance 2011 Financial Results Strategic Initiatives and 2012 Operational Ambitions Objectives and Conclusion
Slide 13: Consolidated income statement
Consolidated income statement (in € millions) 2011 As a % 2010 As a % Change of sales of sales 2011 / 2010 Net sales 1,427 100% 1,357 100% + 5.2%* Gross margin 761 53.3% 722 53.2% + 5.4% Operating income before non- 258 18.0% 254 18.7% + 1.6% recurring items Operating income 245 17.2% 244 18.0% + 0.
Slide 14: Net sales
Net sales Changes in scope Net sales Organic + €32m growth Acquisitions: + €36m Currency Discontinued bus.: - €4m Net sales + €56m effect €1,427m - €18m U.S. dollar + 4.1% €1,357m + 6.5% + €70m 2010 + 5.2% 2011 13
Slide 15: Gross margin
Gross margin Other Acquisitions - €3m Gross profit Organic + €12m growth + Change impact + Absorption of installed base costs + Non-quality costs + €30m - Product mix €761m - Transportation costs - Average selling price Gross profit of reagents 53.3% of sales €722m Sales: + €56m x 53.2% 53.2% of sal
Slide 16: Operating income before non-recurring items
Operating income before non-recurring items Operating Gross profit SG&A Received Operating royalties & income before R&D R&D tax income before non-recurring + €39m - €30m Business dev. credits non-recurring - €3m - €2m items items 26% of sales 10.6% of sales (25.2% 2010) (11% 2010) Received royaltie
Slide 17: Net result
Net result (in € millions) 2011 As a % 2010 As a % Change of sales of sales 2011/2010 Operating income before non- 258 18.0% 254 18.7% + 1.6% recurring items Non-recurring items - 13 - 0.8% - 10 - 0.7% Operating income 245 17.2% 244 18.0% + 0.6% Net financial expense -7 - 0.5% -3 - 0.2% Income tax (
Slide 18: Cash flow statement
Cash flow statement (in € millions) 2011 2010 Change EBITDA (1) 343 334 +9 Income tax and financial expense - 70 - 78 +8 Operating working capital requirement - 50 - 42 -8 Capital expenditure (2) - 102 - 123 + 21 Other -3 - 11 +8 Free cash flow 118 80 + 38 Acquisition of shares (3) - 233 - 25 - 208
Slide 19: Overview
Overview 2011 Operating Performance 2011 Financial Results Strategic Initiatives and 2012 Operational Ambitions Objectives and Conclusion
Slide 20: Overview
Overview 2011 Operating Performance 2011 Financial Results Strategic Initiatives and 2012 Operational Ambitions Strategic Initiatives 2012 Operational Ambitions Objectives and Conclusion
Slide 21: Adapting to the changes in our market environment
Adapting to the changes in our market environment Market environment bioMérieux’s strategy bioMérieux’s results Deterioration in macro- A well-balanced geographic Adaptability and resistance: economic environment and footprint and a strong focus Microbiology sales: + > 8%** market’s slowdown on inno
Slide 22: Mid- to long-term vision proven to be effective
Mid- to long-term vision proven to be effective Market environment bioMérieux’s strategy bioMérieux’s results Solid foundations make IVD An ambitious strategy Solid performance and attractive, mid- to long-term with a long-term vision confidence High-growth emerging Focus on emerging More than 25% o
Slide 23: Confirmed strategic priorities
Confirmed strategic priorities Our strategy Improving patient health through a complete range of in vitro diagnostic solutions for the management of • Infectious diseases • Cardiovascular diseases • Targeted cancers Improving laboratory operational efficiency Ensuring consumer safety and product qua
Slide 24: Undisputed leadership positions = 70% of our net sales
Undisputed leadership positions = 70% of our net sales 2 strategic pillars with leadership positions Clinical Microbiology Industrial Applications % of sales 52% 18% Estimated market share ~ 42% ~ 20%* Size ~ 5% of IVD market €1.4b Time-to-result Main market needs Cost effectiveness Cost effectivene
Slide 25: Undisputed leadership positions = 70% of our net sales
Undisputed leadership positions = 70% of our net sales Continue to expand our leadership positions in clinical and industrial microbiology Be the market’s innovator… Clinical Microbiology Industrial Applications • 2013: launch of 2 innovative platforms, • Develop flow cytometry with strong added-val
Slide 26: An astute, focused player
An astute, focused player Key assets to build upon Immunoassays Molecular Biology % of sales 25% 5% Estimated market share ~ 4% ~ 2% Size ~ 28% of IVD market ~ 9% of IVD market Laboratory consolidation New technologies Main market needs New innovative biomarkers Cost effectiveness Competition Large
Slide 27: An astute, focused player
An astute, focused player Routine tests Maximize our immunoassay assets in developed countries ~ 40% Leverage our VIDAS® franchise Emerging • End of 2012: launch of VIDAS® New Generation High medical countries value tests • Enhance menu with new tests, in particular high medical value tests: Galecti
Slide 28: VIDAS New Generation: a major launch
VIDAS® New Generation: a major launch Same biology Extensive menu: 97 clinical parameters and 16 industrial parameters Strong focus on high medical value tests Full SPR / strip traceability Same philosophy Easy-to-use Robust Flexible Touchscreen Reinforced automation Rich connectivity New services f
Slide 29: A global company for a global market
A global company for a global market A well-balanced geographic footprint South of Europe North to benefit from the fastest growing economies and France America Geographic priorities Emerging Other Fast-growing emerging markets, focusing on countries • Equipment needs • Infectious diseases and micro
Slide 30: 2 new subsidiaries planned in fast-growing markets
2 new subsidiaries planned in fast-growing markets Objectives Sales in emerging countries as a % 26% 27% Fast-paced development in emerging countries of total sales Reinforce bioMérieux’s market shares and brand 23% Be closer to end-consumers 21% 23% 20% 2006 2007 2008 2009 2010 2011 Malaysia IVD ma
Slide 31: Overview
Overview 2011 Operating Performance 2011 Financial Results Strategic Initiatives and 2012 Operational Ambitions Strategic Initiatives 2012 Operational Ambitions Objectives and Conclusion
Slide 32: 2012 Operational ambitions
2012 Operational ambitions Strategic initiatives Employee Company engagement integrations Business R&D processes organization Driving operational excellence to successfully execute our strategic initiatives 31
Slide 33: AES Laboratoire integration: 2012 milestones
AES Laboratoire integration 2012 milestones Commercial Innovation Production Market products in H1 Leverage and integrate Establish plan to 2012 for bioMérieux’s AES CHEMUNEX optimize site network customers: expertise in flow based on capacities • AES Laboratoire cytometry into and know-how “blue ra
Slide 34: ARGENE integration: 2012 milestones
ARGENE integration 2012 milestones Commercial Innovation Production Commercialize ARGENE Adapt ARGENE’s current Transfer 2 high-volume products through RT-PCR products to Grenoble site bioMérieux’s distribution immunocompromised to allow ARGENE site to network products on the Biocartis absorb next y
Slide 35: Lean R&D organization for revolutionary solutions
Lean R&D organization for revolutionary solutions Key changes in R&D: R&D Council and Innovation & Systems Department Optimized launch of 5 priority systems… New blood culture Incubator with system imaging tech. …and including 2 new instruments for our FMLA® offer …designed for the increasingly impo
Slide 36: Global ERP for operational efficiency
Global ERP for operational efficiency A major project: implement a single Global ERP Worldwide For nearly all operations: supply chain, production, sales admin. & finance Deployment of SAP standard version 2008 - 2009 2010 - 2011 2012 - 2014 Project launch & Alignment & Gradual design roll-out in ma
Slide 37: End of 2011: global ERP landscape
End of 2011: global ERP landscape EMEA North America France, UK, Germany U.S. and Canada 36
Slide 38: End of 2012: global ERP landscape
End of 2012: global ERP landscape EMEA North America France, UK, Germany U.S. and Canada Poland, Switzerland, Austria, Czech Republic, Hungary Asia-Pacific China: manufacturing & finance Latin America Argentina, Chile Colombia, Mexico 2012: efficient, worldwide deployment 37
Slide 39: Human resources: key for our competitiveness
Human resources Key for our competitiveness Employee engagement program Full mobilization behind strategic initiatives Compensation aligned with results Focus on bioMérieux University Marketing teams included in Technology Units to better integrate customer needs in product development Aligning our
Slide 40: Overview
Overview 2011 Operating Performance 2011 Financial Results Strategic Initiatives and 2012 Operational Ambitions Objectives and Conclusion
Slide 41: 2012 - 2015 Roadmap
2012 - 2015 Roadmap bioMérieux’s commitment Action plan Expand leadership in clinical and industrial microbiology Strengthen our franchises in high medical value tests (VIDAS®) and molecular biology extraction Drive market growth for selected Expand geographical reach, especially in emerging countri
Slide 42: 2012 Objectives
2012 Objectives 2012 A challenging economic context 2011 trends to continue An investment year 2012 sales growth objective between 3 - 5% at constant exchange rates and comparable business base between 6 - 8% at constant exchange rates 2012 operating result between €255 - 270m before non-recurring i
Slide 43: Conclusion: ability to adapt in tough times thanks to strong fundamentals
Conclusion: ability to adapt in tough times thanks to strong fundamentals Ability to execute our mid- to long-term commitments A clear strategy... • Focus on innovation for high clinical value and customer-centric solutions • Drive geographic expansion • Seize external opportunities …leveraging the
Slide 44: Appendices
Appendices b> Finance BIOME|RIEUXx
Slide 45: Public customer receivables in Southern Europe
Public customer receivables in Southern Europe In Greece: provision for depreciation* of receivables prior to 2010 ≅ 75% Public customer Net amount DSO** December 2011 Change in 1 year receivables In € millions In days Italy 48 317 + 20 Spain 32 400 + 119 Portugal 11 455* + 141 Greece 9 1,086 - 71 T
Slide 46: Capital expenditure
Capital expenditure 2009 2010 2011 2008 €38m €36m 2007 €34m €37m €40m Instruments €83m €86m €74m Other capital €51m €57m expenditure Total €91m €94m €121m €122m €108m % of sales 8.6% 8.4% 9.9% 9.0% 7.5% Change in PPE payables - €1 m - €2 m - €1 m + €1m - €6m Cash outlays* €90m €92m €120m €123m €102m
Slide 47: Summarized balance sheet
Summarized balance sheet Assets Liabilities Goodwill (€189m) €334m Instruments €65m (€68m) Other non-current Equity assets €573m €1,103m (€976m) (€474m) Operating WCR: 25.4%* WCR vs. 23.3% 2010 (€221m) €262m €131m Net debt (Net cash €24m) * At constant scope of consolidation 2011 Operating WCR: 26.1
Slide 48: 2011 Financial Results
2011 Financial Results Strategic Initiatives & 2012 Operational Ambitions Paris - March 14, 2012