bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2011 Earnings Presentation
44 slides from bioMerieux SA's earnings presentation, Sep 7, 2011
Slide 1: 2011 First-Half Review
2011 First-Half Review Paris - September 7, 2011
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 First-Half Performance Operating Performance Financial Results 2011 Objectives bioMérieux Dynamics Conclusion
Slide 4: Overview
Overview 2011 First-Half Performance Operating Performance Financial Results 2011 Objectives bioMérieux Dynamics Conclusion
Slide 5: First-half 2011, demonstrating bioMérieux's solid fundamentals
First-half 2011, demonstrating bioMérieux’s solid fundamentals A challenging economic context Growth in sales Up 4.3%* up 4.9%* excl. the impact of Global ERP system launch in North America and France Growth in operating income before non-recurring items Up 5.2% vs. June 30, 2010 17.8% of sales vs.
Slide 6: Solid sales in priority markets
Solid sales in priority markets North America: + 5.9% EMEA*: steady Slight increase in Western Europe 53% 23% €673m 15% First half: + 4.3% 9% Latin America: + 17.7% Asia-Pacific: + 11.8% Solid growth in the Emerging 7**: up ~ 18% in Q2 2011 Growth rates at constant exchange rates and comparable busi
Slide 7: Europe - Middle East - Africa
Europe - Middle East - Africa Western Europe (46% of global sales) Modest growth: up 1.5% Germany, the United Kingdom and the Nordic countries: good performance Portugal, Greece and Spain: difficult conditions France (- 3%): laboratory consolidation 53% Other countries (7% of global sales) 53% Contr
Slide 8: North America
North America Good performance: up 5.9% An uncertain economy BacT/ALERT®, VIDAS® and VITEK® cards: good results FDA 510(k) approval received for EasyQ® MRSA 23% and VIDAS® TOXO IgG Avidity assays €155m Growth rates at constant exchange rates and comparable business base, excluding the impact of disc
Slide 9: Asia-Pacific
Asia-Pacific Robust growth: up 11.8% China (+ 20%), South Korea (+ 19%) and India (+ 17%*) Japan: dynamic sales for the Sysmex joint venture Strong demand for automated microbiology and 15% VIDAS® SFDA: new products registered €99m Stiff competition in the microplate market Growth rates at constant
Slide 10: Latin America
Latin America Strong expansion: up 17.7% Growth in all countries Rapid increase in microbiology and VIDAS® Weak sales in microplates 9% Industrial applications: up 12% €60 m Growth rates at constant exchange rates and comparable business base 9
Slide 11: A diversified product portfolio, focusing on infectious diseases
A diversified product portfolio, focusing on infectious diseases, a major clinical need Microbiology H1 2011 % Change 52% Clinical Applications €568m + 4.0% Other €8m Microbiology €353m + 8.7% Molecular 5% Biology Immunoassays €175m + 0.2%* Molecular Biology €32m - 13.3% Industry 16% Industrial Appl
Slide 12: Installed base
Installed base Installed base - number of instruments Analysis of first-half sales 62,000 59,900 55,700 Instruments 10.1% 10.7% 53,100 Services and Other 5.3% 5.5% 49,200 Reagents and Reagents 84.6% 83.8% Services Growing at ~ + 5%* 2007 2008 2009 2010 First-half First-half First-half 2011 2010 2011
Slide 13: Strong operational performance
Strong operational performance Commercial offer Launch of 10 new products, including: • CE-marked VITEK® MS • First CE-marked bioNexia® rapid tests • chromID™ C. difficile • VIDAS® UP Salmonella (SPT) • chromIDTM Lmono New developments and geographic expansion for MylaTM VITEK® 2 AST* test for Piper
Slide 14: Successful launch in H1 2011 / Expanding market share
Successful launch in H1 2011 A CE-marked, differentiated offer • Integrating VITEK® MS (for bacteria identification) and VITEK® 2 (for antibiotic susceptibility testing) • Via MYLATM bioMérieux’s unique position: “By Microbiologists for Microbiologists” • Leadership and real expertise in microbiolog
Slide 15: Strong operational performance
Strong operational performance New strategic collaborations With Ipsen in theranostics With SIBS (Shanghai Institutes for Biological Sciences) for food applications Key events 3rd edition of the World HAI* Forum Creation of LyonBioTech Technological Research Institute Encouraging findings presented
Slide 16: 10 acquisitions in 5 years
10 acquisitions in 5 years Biomarkers bioTheranostics and theranostics POC bioMérieux Shanghai Biotech manual and automated Infectious diseases bioMérieux Shanghai Biotech in developing countries Zenka Infectious diseases Bacterial Barcodes in developed countries ARGENE AES Laboratoire BTF AB BIODIS
Slide 17: The rapid microbiology company
The rapid microbiology company 30 years of experience, fully dedicated to industrial applications 2010 revenues*: €76m Incl. ~ €62m sales of own products and ~ €14m of distributed products Export: ~ 43% of sales EBIT margin: ~ 11% Nearly 400 employees** Headquarters: Ker Lann (Rennes - France) o o I
Slide 18: Sales
Sales Half of revenues from food applications* 49% Food Pharma and cosmetics 20% Others 31% Average annual growth 2006 - 2010: + 8%, excl. BSE (Bovine Spongiform Encephalopathy) AES Laboratoire’s unique product portfolio Innovative culture media Lab automation solutions, ensuring maximal standardiza
Slide 19: Financials
Financials bioMérieux 2011 sales and ROC objectives Closing date: July 22, 2011 Sales: additional external growth of ~ 200 bp Operating margin (before purchase price allocation & one-time costs): no significant impact Purchase price: €183m Upsides Highly complementary product lines AES Laboratoire’s
Slide 20: Integration
Integration Integration strategy already defined to secure the process Integration plan: initial phases on track Managed by a dedicated team Governed by a joint strategic committee Integration priorities Capture and maximize commercial synergies • Sales forces to be united by January 1, 2012 • AES p
Slide 21: Products for infectious disease
Products for infectious disease Over 20 years of experience in virology diagnostics 2010 revenues: €10m Export: ~ 50% of sales R&D expenses: ~ 15% of net sales About 70 employees Headquarters: Verniolle (Midi-Pyrenees - France) 3 subsidiaries: Italy, Switzerland and U.S. High quality production: GMP
Slide 22: Sales
Sales Three-quarters of revenues in molecular diagnostics* 74% Molecular biology Immunoassays Others 17% A comprehensive range of diagnostics For infectious diseases • Cytomegalovirus, Epstein-Barr virus, herpes simplex virus… For immunocompromised patients Used on most open real-time PCR platforms
Slide 23: Significant commercial synergies
Significant commercial synergies Purchase price: €37.5m With contingent payments up to €5m Upsides Leveraging bioMérieux’s extensive global network • Direct sales: from 4 countries to 39 Adapting ARGENE’s tests to Biocartis’ platform • Shorter time-to-market of a broad test menu Integration Kick-off
Slide 24: Overview
Overview 2011 First-Half Performance Operating Performance Financial Results 2011 Objectives bioMérieux Dynamics Conclusion
Slide 25: Consolidated income statement
Consolidated income statement In € millions H1 2011 H1 2010 % Change Net sales 673 651 + 3.5%* Operating income + 5.2% before non-recurring items** 120 114 As a % of sales 17.8% 17.5% Operating income** 119 109 + 8.6% As a % of sales 17.6% 16.8% Net income 75 72 + 3.7% As a % of sales 11.1% 11.1% Af
Slide 26: Net sales
Net sales Organic Discontinued growth business Net sales - €1m + €28m Currency Net sales effect €673m - €5m €651m U.S. dollar + 4.3% decrease Rise of other currencies + €22m + 3.5% H1 2010 H1 2011 25
Slide 27: Gross profit
Gross profit Other Gross profit Organic + €6m growth Change impact Decrease in + €15m amortization and €363m field service costs – Non quality costs Decrease in prices 53.9% Gross profit – of sales €342m Sales: + €28m x 52.5% 52.5% of sales + €21m + 6.1% H1 2010 H1 2011 26
Slide 28: Operating income before non-recurring items
Operating income before non-recurring items Gross profit SG&A Royalties received & Operating income R&D - €15m Business dev. income tax before Operating income credits non-recurring + €21m + €1.3m before - €1.4m items non-recurring 27% of sales items (25.7% H1 2010) 10.7% of sales (11.2% H1 2010) Bl
Slide 29: Net income
Net income Other non-recurring Net financial Operating income and expense expense income before non-recurring - €1.9m Income tax items + €3.4m - €4.8m Net income + €5.9m H1 2011 Net income Greek AR €1.1m H1 2010 Average income Greek AR €4.4m tax rate Boxtel €0.5m H1 2011: 35.4% H1 2010: 33.4% €74.7m
Slide 30: Cash flow statement
Cash flow statement In € millions H1 2011 H1 2010 Change EBITDA (1) 159 153 +6 Income tax and financial expense (36) (32) -4 Operating working capital requirement (48) (37) - 11 Capital expenditure (2) (45) (50) +5 Other (3) 6 (4) + 10 Free cash flow 36 30 +6 Acquisition of shares (4) (16) + 16 Divi
Slide 31: Public customer receivables in Southern Europe
Public customer receivables in Southern Europe Contrasted DSO* evolution Italy: stable Greece: stabilized since January 1st Spain and Portugal: marked increase In Greece, a 28% provision for depreciation Public customer Net amount DSO* June 2011 Change in 1 year receivables In € millions In days In
Slide 32: Summarized balance sheet
Summarized balance sheet Assets Liabilities Goodwill (€189m) €182m Instruments €64m (€68m) Other non-current assets €457m €989m Equity (€474m) (€976m) Operating WCR: 25.4% WCR €266m vs. 24.4% H1 2010 (€221m) Net cash: €20m (€24m) 31
Slide 33: Overview
Overview 2011 First-Half Performance Operating Performance Financial Results 2011 Objectives bioMérieux Dynamics Conclusion
Slide 34: 2011 Objectives
2011 Objectives In the current economic context in Western Europe and North America 2011 sales growth objective around 5% at constant exchange rates and comparable business base (excl. business being discontinued) around 7% at constant exchange rates incl. recent acquisitions 2011 operating income*
Slide 35: Overview
Overview 2011 First-Half Performance Operating Performance Financial Results 2011 Objectives bioMérieux Dynamics Conclusion
Slide 36: Market dynamics
Market dynamics Opportunities Growth in clinical and industrial markets High-growth emerging countries Strong need for innovation: reinforced automation, shorter time-to-result… Explosion of medical knowledge: new technologies, new biomarkers… Challenges Uncertainty of healthcare system funding More
Slide 37: bioMérieux dynamics
bioMérieux dynamics Assets to be leveraged Clinical and industrial microbiology leadership A large installed base of ~ 62,000 systems Global commercial network Unique understanding of infectious organism resistance Specific action areas Erosion of VIDAS® sales in routine testing in developed countri
Slide 38: bioMérieux dynamics: Clinical microbiology
bioMérieux dynamics Clinical microbiology Market environment Opportunities Challenges Unmet medical needs: New technologies (mass spectrometry, quicker time-to-result, HAI* rise… sequencing…) Growing need for automation New entrants New technologies (mass spectrometry, Funding availability (FMLATM)
Slide 39: bioMérieux dynamics: Immunoassays
bioMérieux dynamics Immunoassays Market environment Opportunities Challenges High-growth emerging countries Laboratory consolidation POCT* growing at about 10% Tough competition, price pressure in New innovative biomarkers routine test market New entrants (emerging countries, Danaher…) bioMérieux Ma
Slide 40: bioMérieux dynamics: Molecular biology
bioMérieux dynamics Molecular biology Market environment Opportunities Challenges Fast growing market Leading players with dominant positions Need for fully automated systems Newer & more cost-efficient platforms A more personalized approach to Reimbursement falling behind innovation medicine New te
Slide 41: bioMérieux dynamics: Industrial applications
bioMérieux dynamics Industrial applications Market environment Opportunities Challenges New food safety regulations and Difficult economic context initiatives (U.S., emerging markets…) Increasing competition New technologies and need for faster New technologies testing Growing public awareness of fo
Slide 42: Overview
Overview 2011 First-Half Performance Operating Performance Financial Results 2011 Objectives bioMérieux Dynamics Conclusion
Slide 43: Conclusion: Opportunities to create value
Conclusion Opportunities to create value Good performance in H1… Solid sales in priority markets • North America, Asia-Pacific and Latin America • Strong sales growth in clinical microbiology, reinforcing our leadership Improved current operating profitability Launch of 10 new products 2 acquisition
Slide 44: 2011 First-Half Review
2011 First-Half Review Paris - September 7, 2011