Diasorin S.p.a. · MIL:DIA
Diasorin — Investor Day (October 2011)
70 slides from Diasorin's investor day presentation, Oct 17, 2011
Slide 1: Investor Day
Investor Day MONDAY, OCTOBER 17 Milan
Slide 2: Disclaimer
DISCLAIMER Save where otherwise indicated, the Company is the source of the content of this Presentation. Care has been taken to ensure that the facts stated in this Presentation are accurate, and that the opinions expressed are fair and reasonable. However, no representation or warranty, express or
Slide 3: Opening Remarks
OPENING REMARKS Gustavo Denegri Chairman Carlo Rosa Chief Executive Officer
Slide 4: DiaSorin: Riding a New Business Wave
DIASORIN: RIDING A NEW BUSINESS WAVE • COMPANY PROPOSITION AS A SPECIALTY • NEW R&D PIPELINE IN BOTH LARGE CONSOLIDATED PLAYER IN THE DIAGNOSTIC BUSINESS MARKETS (e.g. IDs) OR MID-SIZE SPECIALTY CLINICAL AREAS (e.g. GI INFECTIONS, CKD) • TECHNOLOGICAL SHIFT FROM ELISA TO CLIA LEVERAGING ON AVAILABLE
Slide 5: DiaSorin History
DIASORIN HISTORY 1968 DiaSorin’s birth as division of Sorin Biomedica SpA 1970-1985 Development of products portfolio with RIA and ELISA technologies 1986-1999 Sorin Biomedica acquires control of Incstar Inc. (US company in the In Vitro Diagnostics market), divests IVD activities in a separate compa
Slide 6: DiaSorin Worldwide Presence
DIASORIN WORLDWIDE PRESENCE INDUSTRIAL SITES SUBSIDIARIES DISTRIBUTORS EUROPE AND MIDDLE EAST ITALY SALUGGIA, GERENZANO* AUSTRIA ISRAEL BOSNIA AND LITHUANIA IRELAND DUBLIN BENELUX ITALY HERZEGOVINA POLAND UK DARTFORD CZECH REPUBLIC PORTUGAL CROATIA ROMANIA GERMANY DIETZENBACH FRANCE SPAIN CYPRUS RUS
Slide 7: In Vitro Diagnostic (IVD) Market
IN VITRO DIAGNOSTIC (IVD) MARKET EACH SEGMENT OF THE IVD MARKET DIFFERS FOR: • Assay technology • Assay automation • Personnel responsibility • Regulatory complexity • Location of the lab in the hospital CLINICAL CHEMISTRY IMMUNOASSAY 21% General markers (Enzymes, electrolytes, etc) Infectious immun
Slide 8: Immunoassay Clinical Areas
IMMUNOASSAY CLINICAL AREAS DIASORIN AIMS TO PLAY AN IMPORTANT ROLE IN A € 7BN MARKET AS AT 2010 BY COMBINING A DIFFERENT STRATEGY APPROACH FOR EVERY CLINICAL AREA IN THE IMMUNOASSAY MARKET AUTOIMMUNITY BONE & ALLERGY MINERAL GI STOOL TESTING 6.4% 9.3% 5.7% INFECTIOUS DRUG MONITORING & OTHERS DISEASE
Slide 9: In Vitro Diagnostic (IVD) Market: Purposes & End-Users
IN VITRO DIAGNOSTIC (IVD) MARKET IVD TESTS ARE MEDICAL DEVICES, PERFORMING DIAGNOSES FROM ASSAYS IN A TEST TUBE, OR IN A CONTROLLED ENVIRONMENT OUTSIDE A LIVING ORGANISM REAGENTS BLOOD PHYSIOLOGICAL/PATHOLOGICAL STATE EXAMINING PROVIDING SAFETY BLOOD SUPPLY INSTRUMENTS SPECIMENS TISSUES INFORMATION
Slide 10: Growth Potential for IVD Market
GROWTH POTENTIAL FOR IVD MARKET Ageing population drives increased diagnostics demand DEMOGRAPHICS Prevalence and incidence increase of certain diseases FOCUS ON Increasing focus by government and other third party payers PREVENTION on diagnostic testing as a mean to decrease healthcare costs, AND D
Slide 11: Immunoassay Technologies
IMMUNOASSAY TECHNOLOGIES FEATURES RIA ELISA CLIA RADIO IMMUNO ASSAY ENZYME LINKED IMMUNOSORBENT ASSAY CHEMILUMINESCENT IMMUNO ASSAY TRACER TECHNOLOGY RADIOACTIVE NON-RADIOACTIVE LUMINESCENT MOLECULAR COLORIMETRIC AUTOMATION N/A BATCH PLATE ANALYZERS CLOSED/DEDICATED ANALYZERS LEVEL OF INTERVENTION R
Slide 12: M&A
M&A TARGET SELLER STRATEGY AND EFFECTS ON BUSINESS TECHNOLOGICAL INVESTMENT RATIONALE AREA BYK SANGTEC ALTANA AG RIGHTS TO LIAISON® PLATFORM COMMERCIAL EXPANSION CLIA (IVD BUSINESS INTEGRATION BETWEEN BIOCHEMISTRY AND 2002 DIVISION) AUTOMATIZATION PRODUCTS MENU EXPANSION COMPANY BRAND ENHANCEMENT MO
Slide 13: Partnerships
PARTNERSHIPS TARGET PARTNER STRATEGY AND EFFECTS ON BUSINESS TECHNOLOGICAL INVESTMENT RATIONALE AREA LIAISON XL STRATEC DEVELOPMENT OF NEW FRONT-LINE INSTRUMENT: CLIENTS BASE ENLARGEMENT CLIA 2005 BIOMEDICAL LIAISON XL SYSTEMS AG LAMP EIKEN CHEMICAL INVESTMENT IN MOALECULAR DIAGNOSTICS: LICENSING AG
Slide 14: R&D and Innovation
R&D AND INNOVATION Francesco Colotta Senior Corporate VP and Chief Medical Officer
Slide 15: In Vitro Diagnostics: Basics
IN VITRO DIAGNOSTICS: BASICS DETECTION IN BIOLOGICAL FLUIDS... E.G. BLOOD, URINE, CSF,… IN VITRO DIAGNOSTICS E.G. PROTEINS NUCLEIC ACIDS SMALL MOLECULES IMMUNODIAGNOSTICS MOLECULAR DIAGNOSTICS CLINICAL CHEMISTRY ...OF A “MOLECULE”... DETECTION BY ANTIBODIES… DETECTION BY DNA… DETECTION BY CHEMICAL R
Slide 16: Areas to Be a Front Runner in Lab Testing
AREAS TO BE A FRONT RUNNER IN LAB TESTING • STRENGTHEN OUR LEADERSHIP IN IMMUNOASSAY • BECOME A NEW PLAYER IN MOLECULAR DIAGNOSTIC IMMUNODIAGNOSTICS MOLECULAR DIAGNOSTICS DETECTION BY ANTIBODIES… DETECTION BY DNA… …BY A LIGHT-EMITTING MOLECULE …BY A FLUORESCENCE-EMITTING MOLECULE BLOOD BANKS INFECTI
Slide 17: Blood Banks Development Program
BLOOD BANKS DEVELOPMENT PROGRAM LEVERAGE DIASORIN EXPERIENCE AND REPUTATION IN IDS LEVERAGE DIASORIN FULL MENU AVAILABILITY T. pallidum BLOOD HBsAg HTLV I-II BANKS HCV Chagas HIV HIV HT LIAISON XL In development DIASORIN LEVERAGING EXPERIENCE, REPUTATION, FULL MENU AVAILABILITY, LIAISON XL
Slide 18: New Automated System in Stool Testing
NEW AUTOMATED SYSTEM IN STOOL TESTING SET UP OF OPTIMAL ASSAY CONDITIONS COMPANION ONE-STEP SIMPLE SAMPLE WITH LIAISON AND LIAISON XL PREPARATION DEVICE GI INFECTIONS C. DIFFICILE TOXINS A&B ENTEROHEMORRAGIC E. COLI C. DIFFICILE GDH ROTAVIRUS H. PYLORI ADENOVIRUS GI INFLAMMATORY/AUTOIMMUNE DISEASES
Slide 19: Leverage on Bone Metabolism Franchise
LEVERAGE ON BONE METABOLISM FRANCHISE CHRONIC KIDNEY DISEASE (CKD) AND BONE METABOLISM CKD BONE MASS LOSS HIGH BONE TURNOVER LOW BONE TURNOVER (INCREASED REABSORPTION) (REDUCED FORMATION) HYPERPHOSPHATEMIA FGF-23 HYPERPHOSPHATEMIA FGF-23 REDUCED 1,25 VITD 1,25 VITD SPECIFIC ASSAY REDUCED 1,25 VITD 1
Slide 20: Hypertension: A Full Panel on LIAISON Systems
HYPERTENSION: A FULL PANEL ON LIAISON SYSTEMS DIASORIN MENU: A UNIQUE OFFER FOR THE DETECTION OF THE KEY HYPERTENSION MARKERS ON A FULLY AUTOMATED PLATFORM DIFFERENT “TYPES” OF HYPERTENSION RENOVASCULAR HYPERTENSION RENIN-SECRETING TUMORS HIGH RENIN ESSENTIAL HYPERTENSION LOW RENIN ESSENTIAL HYPERTE
Slide 21: DiaSorin in Molecular Diagnostics: The 3 Key Decisions
DIASORIN IN THE MOLECULAR DIAGNOSTICS DIASORIN STRATEGY TO PLAY THE MOLECULAR DIAGNOSTIC MARKET THE 3 KEY DECISIONS AUTOMATED NA AMPLIFICATION AMPLIFICATION TECHNOLOGY NAT MENU AND DETECTION INSTRUMENT INFECTIOUS DISEASES LAMP LIAISON IAM AND ONCOHEMATOLOGY TESTS 3 DECISIONS, 1 WINNING STRATEGY IN M
Slide 22: LAMP to Develop a Specialty Menu in NAT
LAMP TO DEVELOP A SPECIALTY MENU IN NAT DIASORIN LICENSED LAMP (LOOP-MEDIATED ISOTHERMAL AMPLIFICATION) TECHNOLOGY FROM EIKEN CHEMICAL COMPANY LTD IN 2008: THE DIFFERENTIATION FACTOR IN ONCO-HEMATOLOGY FUTURE MENU DIASORIN LAMP grants: HIGHER SENSITIVITY HIGHER SPECIFICITY SIMPLER REACTION SET-UP SH
Slide 23: LIAISON IAM: A Small Automated Analyzer
LIAISON IAM: A SMALL AUTOMATED ANALYZER DIASORIN SIGNED AN AGREEMENT WITH PRECISION SYSTEM SCIENCE CO. LTD OF JAPAN (PSS) FOR THE DEVELOPMENT OF A NUCLEIC ACID TEST (NAT) ANALYZER Liaison Instant Amplification Molecular (IAM) CLIENTS S DIASORIN MICROBIOLOGY CUSTOMERS DIASORIN SPECIALITIES SEROLOGY CU
Slide 24: NAT Menu: Focus on Specialties
NAT MENU: FOCUS ON SPECIALTIES LEVERAGE DIASORIN EXPERIENCE AND PROVIDE THE SPECIALIST REPUTATION IN INFECTIOUS DISEASES WITH A COMPLETE PANEL INFECTIOUS DISEASES SPECIALTIES ONCO-HEMATOLOGY SPECIALTIES EPSTEIN–BARR VIRUS (EBV) MYELOPROLIFERATIVE NEOPLASMS (MYELO NEOPL) CYTOMEGALOVIRUS (CMV) ACUTE L
Slide 25: LAS Configuration and LIAISON XL
LAS CONFIGURATION AND LIAISON XL LAS BRINGS LIAISON XL INTO THE MOST ADVANCED, HIGH THROUGHPUT AND AUTOMATED DIAGNOSTIC LABS, TO FULFILL FLEXIBILITY AND EFFICIENCY OF THE NEW ANALYZER DEVELOPMENT PLAN: • UPGRADE SW AND HW TO INTEGRATE LIAISON XL INTO AUTOMATED PATIENT SAMPLE PROCESSING: LABORATORY A
Slide 26: DiaSorin: R&D Pipeline 2011-2015
DIASORIN: R&D PIPELINE 2011 - 2015 LEVERAGE DIASORIN EXPERIENCE BLOOD BANK K AND REPUTATION IN IDS HTLV I-II CHAGAS HIV - HT INFECTIOUS DISEASES AUTOMATED STOOL TESTING DEVELOP AN INNOVATIVE IMMUNODIAGNOSTIC CHEMILUMINESCENT PLATFORM CHARACTERIZED BY: C. DIFFICILE H. PYLORI ENTER E. COLI · BIOLOGICA
Slide 27: Markets and Sales
MARKETS AND SALES Chen Even Senior Corporate VP Commercial Operations
Slide 28: DiaSorin in the €7BN Immunoassays Segment
DIASORIN IN THE ¤ 7BN IMMUNOASSAYS SEGMENT OUT OF A WW IVD MARKET OF ¤ 33BN, DIASORIN MAIN FOCUS IS IMMUNOASSAY IMMUNO ASSAYS ¤ 7BN OUT OF A WW IMMUNOASSAY DRUG MONITORING OTHER MARKET OF ¤ 7BN, DIASORIN MAIN GI STOOL CLINICAL AREAS OF INTEREST ARE: TESTING 250 ALLERGY 300 ONCOLOGY 400 & ENDOCRINOLO
Slide 29: Market Share: Infectious Disease
INFECTIOUS DISEASE (ex Heps & Retrovirus) MARKET MARKET PLAYERS NORTH WW: ¤ 850MLN MARKET SHARE AMERICA SIEMENS TRENDS LATAM DIASORIN: 10% 30% OTHERS ID growing WW following 250 10% demographics at 3-5% in ABBOTT: 25% the US and LatAm and >10% 150 BIOMÉRIEUX: 15% 10% in China ROCHE SIEMENS: 10% PRIC
Slide 30: Market Share: Hepatitis & Retrovirus
HEPATITIS & RETROVIRUS MARKET MARKET PLAYERS WW: ¤ 1.5BN OTHERS ABBOTT USA LATAM MARKET SHARE WW ex US, ex JAPAN: DIASORIN 10% 5% 40% ¤ 750MLN 500 200 DIASORIN: 5% TRENDS ABBOTT: A 40% Growing volumes due to SIEMENS: 15% ROCHE 15% demographics, patients ROCHE: 15% access to testing and 350 urbanizat
Slide 31: Market Share: GI Stool Testing
GI STOOL TESTING MARKET MARKET PLAYERS EUROPE MERIDIAN WW: ~ ¤ 300MLN MARKET SHARE ROW EUROPE: ¤ 90MLN TRENDS 90 MERIDIAN: 30% CAGR at +10-15% 60 30% Increasing incidence of C. OTHER SMALL-MEDIUM Difficile (hospital acquired PLAYERS: 70% infections) Low penetrated H. Pylori 150 Market size not attra
Slide 32: Market Share: Oncology / Endocrinology
ONCOLOGY / ENDOCRINOLOGY MARKET MARKET PLAYERS EUROPE WW: ¤ 1.8BN MARKET SHARE APAC OTHERS TRENDS ROCHE ID increase in volume due to 350 DIASORIN: > 2% 18% 35% higher prevalence, population 700 ROCHE: 35% ageing and promotion of urban lifestyle SIEMENS: 25% 2% 250 2 50 ABBOTT: 20% OTHERS: ~ 18% 20%
Slide 33: Nucleic Acid Testing (NAT)
NUCLEIC ACID TESTING (NAT) MARKET MARKET PLAYERS WW: ¤ 3.4BN LATAM MARKET SHARE SIEMENS MENS APAC GEN TRENDS PROBE 9% Annual increase: +17% 450 250 ROCHE: 25% OTHERS 9% • Oncology: +34% QIAGEN: 15% 32% • Viral infection: +12% ABBOTT: 10% 1,500 ABBOTT 10% PRICING G GEN-PROBE: 9% Decrease 10% due to:
Slide 34: Geographical Expansion
GEOGRAPHICAL EXPANSION BRAZIL AUSTRIA CANADA AUSTRALIA INDIA CHINA CZECH REP. NETHERLANDS PURPOSE: penetrate ISRAEL IRELAND SOUTH AFRICA a fast growing MEXICO PORTUGAL market STRATEGY: JV with local distributors JAPAN PURPOSE: penetrate the richest IVD market STRATEGY: local distributor support or a
Slide 35: LIAISON XL, the New Front Line Analyzer
LIAISON XL, THE NEW FRONT LINE ANALYZER HIGH THROUGHPUT 180 TESTS/HOUR FULL LSN MENU + HIV AND HCV UP TO 25 REAGENTS ON BOARD AVAILABLE TO CONNECT WITH LAS CONSUMABLES TOUCH SCREEN LOADING VIDEO STARTER REAGENTS REAGENTS SAMPLES MICROPARTICLES LOADING SUSPENDING AREA CABINET A COMPACT AND EFFICIENT
Slide 36: From LIAISON to LIAISON XL: Throughput
FROM LIAISON TO LIAISON XL 240 MAJOR COMPETITORS ARCHITECT 2000 200 CENTAUR XP UNICELDXI 600 VITROS 3600 160 COBAS E THROUGHPUT/H 120 MAJOR COMPETITORS 80 CENTAUR CP ARCHITECT 1000 ACCESS II 40 0 5 10 15 20 25 30 35 40 REAGENT CHANNELS FROM LIAISON, BENCH TOP SPECIALTY MARKET ANALYZER TO LIAISON XL,
Slide 37: LIAISON XL: Competitive Environment
LIAISON XL: COMPETITIVE ENVIRONMENT DIASORIN ROCHE BECKMAN ABBOTT SIEMENS ORTHO COBAS COULTER ARCHITECT CENTAUR VITROS E DXI 600 2000 XP 3600 THROUGHPUT 120 180 170 200 200 240 180 TOTAL MENU 92 94 73 57 50 60 50 MENU OF “SPECIALTIES” ++++ ++++ ++ + + + + TECHNOLOGY CLIA CLIA ECLIA CLIA CMIA CLIA CL
Slide 38: Vitamin D
VITAMIN D Carlo Rosa Chief Executive Officer
Slide 39: Worldwide Vitamin D Market: 2007-2011E
WORLDWIDE VITAMIN D MARKET: 2007-2011E 100.0 56 .3% G R: + CA 1E 90.0 7- 2 01 7% 200 :+ 76 . .1 % 80.0 GR 62 CA G R: + 10 CA -20 1E 70.0 20 07 7- 2 01 8% 200 :+ 78. R Million Tests 60.0 C AG 10 07 -20 50.0 20 40.0 30.0 20.0 10.0 0 2007 00 07 2008 20 008 0008 2009 20 009 0009 2010 20 010 010 2011E 20
Slide 40: Vitamin D Penetration
VITAMIN D PENETRATION 173.5 177.1 200 DS TESTS MKT TESTS 7 17 17 155.6 149.8 147.4 133.5 132.9 125.3 150 113.4 94.9 79.4 100 64.8 TESTS/1000 INHAB 40.5 50 35.1 23.7 23.9 23.6 16.9 16.8 17.0 14.8 14.3 13.1 10.7 6.8 4.6 4.5 1.0 4.1 0.2 0.1 1.2 0 ISRAEL BELGIUM FRANCE CANADA GERMANY ITALY CZECH PORTUGA
Slide 41: Product Cycle of Vitamin D Adoption
PRODUCT CYCLE OF VITAMIN D ADOPTION PRE - MKT PHASE INTRODUCTION GROWTH MATURITY DECLINE USA BELGIUM AUSTRALIAA ISRAEL DENMARK SALES GERMANY FRANCE NETHERLANDS BRAZIL CANADA SPAIN ITALY UK MEXICO CZECH REPUBLIC PORTUGAL JAPAN CHINA* TIME # TESTS / 1% POPULATION PENETRATION *CALCULATED ON 100 MLN POP
Slide 42: Prescriptions and Potential Applications
PRESCRIPTIONS AND POTENTIAL APPLICATIONS INTERNAL MEDICINE HOSPITAL AND HSP LABOUR GPS AND 16% INTERNISTS GENERAL PRACTICE 25% 6% OBSTETRIC & GYNEC. ACCOUNT 4% 4% ENDOCRINOLOGY MULTI SPECIALTY FOR 61% OF 4% 2% PRACTICE NEPHROLOGY TOTAL TESTING 30% 2% 5% 2% REUMATOLOGY PRESCRIPTIONS PEDIATRICS FAMILY
Slide 43: Consolidated Vitamin D Markets
CONSOLIDATED VITAMIN D MARKETS US: VITAMIN D MARKET 21.0% 20.5% 65 MLN TESTS • 40% (125MLN) of the US population is Vitamin D 20.0% MKT PENETRATION% deficient* or insufficient, but less then half is tested 19.5% 19.0% • Vitamin D tests/year can grow from 53MLN (2011E) to 18.5% ~ 65MLN in the next 4
Slide 44: Emerging Vitamin D Markets
EMERGING VITAMIN D MARKETS CHINA: VITAMIN D MARKET 6% 5 MLN TESTS • Huge potential: unexplored market 5% MKT PENETRATION% • DiaSorin as the only provider on the chinese market 4% with CLIA test just approved 3% 5% • Pricing: increasing 2% 1% 0% 0% 2011E 2015E BRAZIL: VITAMIN D MARKET 7% 12 MLN TESTS
Slide 45: Vitamin D in Japan
VITAMIN D IN JAPAN JAPAN VITAMIN D MARKET In Japan, Calcium and Vitamin D deficiency is more prevalent than in the US and Europe (Calcium and Vitamin D in Osteoporosis, Takuo Fajita, et al. Journal of Bone and Mineral metabolism, Japan Volume 9, N°2, August 1991) Large Japanese Class A evidence Tria
Slide 46: Vitamin D Market Growth Forecast
VITAMIN D MARKET GROWTH FORECAST 160.0 14 .4% R: + C AG 140.0 15E 1E -20 2 01 .0 % 10 R: + 120.0 C AG 15E 1E -20 2 01 100.0 MILLION TESTS 80.0 60.0 40.0 20.0 0 2011E 201 011E 01 1 2015E WW market tests DiaSorin tests DIASORIN AIMS TO MAINTAIN A SIGNIFICANT GROWTH, LEVERAGING ON ITS UNDISPUTED LEADER
Slide 47: Human Capital
HUMAN CAPITAL Stefano Ronchi Senior Corporate VP Human Resources
Slide 48: DiaSorin Identification
DIASORIN IDENTIFICATION IDENTIFICATION HOW WE DID IT PEOPLE FOR DIASORIN: IN LAST 10 YEARS THE KEY FOCUS GLOBAL PLAYER SINCE 2000 THE FOCUSED ON: HISTORY OF THE COMPANY SAYS MISSION THAT DIASORIN IS COMPANY VISION “LINKED TO CUSTOMERS THE KNOWLEDGE” STRATEGY INNOVATION THE VALUE OF & EXECUTION AND C
Slide 49: DiaSorin People Map
DIASORIN PEOPLE MAP AGE EDUCATION Biology B 20% 17% 19% Chemistry C Technical Biochemistry B Degrees: 40% 39% 5% Engineering E Economics: E 7% 30% 33% 9% Other O graduates: 14% Technical High School: 39% 7% 14% 7% WORLDWIDE EMPLOYEES 2007-2010 +56% <30 years 30-40 yearss 40-50 yearss >50 years SERVI
Slide 50: Investment in Human Capital
INVESTMENT IN HUMAN CAPITAL NUMBERS ON 2007-2010 INVESTMENT ON OUR LEADERSHIP TALENTS “TOP 20” MANAGEMENT POSITIONS: ACCOUNTABILITY OF THE TOP MANAGEMENT IN MANAGING THE “KEY-PEOPLE” THROUGH: 35% MANAGERS PROMOTED 45% NEW MANAGERS CAREER DEVELOPMENT INTERNATIONAL MOBILITY RETENTION PLANS 43 NEW ENTR
Slide 51: DiaSorin Management Style
DIASORIN MANAGEMENT STYLE COMPETENCE SELF-CRITICISM/INSURANCE OF STRENGTHS ENERGY PASSION IMPLEMENTATION /ACTION DEDICATION PRAGMATISM ABILITY TO TAKE DECISIONS IDENTIFICATION WITH THE COMPANY ATTENTION TO DETAILS HUMAN CAPITAL: VALUE OF INTANGIBLE ASSETS
Slide 52: DiaSorin Leadership: 2012-2015 Model
DIASORIN LEADERSHIP: 2012-2015 MODEL REFLECTS VALUES AND TRAITS OF A TRUSTWORTHY MANAGEMENT DEFINES A COMMON LANGUAGE ON THE WAY “TO BE A LEADER” INCREASES EXCELLENCE MANAGEMENT GOING FORWARD WE IDENTIFY OURSELVES IN THESE VALUES THE MARKET CAN MATERIALLY VALUE US ON THESE TRAITS HR SUPPORTS THE ENH
Slide 53: DiaSorin: Riding a New Business Wave
DIASORIN: RIDING A NEW BUSINESS WAVE DIASORIN LEADERSHIP MODEL, A WELL-BALANCED MIX OF ENTREPRENEURIAL SPIRIT AND MANAGERIAL SKILLS IDENTIFICATION WITH THE COMPANY ORIENTATION ENNNTT TO RE RES RESULTS EES INNOVATION AND CHANGE DRIVER ENERGY, GYYY, DRIVE AND PRO-ACTIVITY -AAACC QUALITY ACCOUNTABILITY
Slide 54: 2012-2015: Riding a New Business Wave
2012-2015: RIDING A NEW BUSINESS WAVE Andrea Senaldi Senior Corporate VP and Chief Financial Officer Carlo Rosa Chief Executive Officer
Slide 55: Historical Financials
HISTORICAL FINANCIALS ¤/MLN FY 2010 FY 2009 2010 VS. 2009 FY 2008 FY 2007 SALES 404.5 304.1 + 33.0% 244.6 202.3 EBITDA 167.1 123.6 + 35.2% 85.6 64.0 % 41.3% 40.7% 35.0% 31.6% EBIT 145.5 106.4 + 36.8% 70.8 50.1 % 36.0% 35.0% 28.9% 24.7% NET RESULT 90.4 70.0 + 29.1% 37.5 25.2 % 22.4% 23.0% 15.3% 12.5%
Slide 56: 2010 Key Numbers
2010 KEY NUMBERS 2010 SALES BREAKDOWN SALES BY GEOGRAPHY IN €/MLN +23.1 404.5 +43.2 +6.8 +10.3 MUREX 19.6% 304.1 +17.0 LATAM APAC NORTH EUROPE & AMERICA AFRICA 5.2% 9.3% 65.9% RIA ELISA LIASON INSTRUMENTS + OTHER FY 2009 FY 2010 2010 COSTS BREAKDOWN COSTS COMPONENTS IN €/MLN 3.2% +5.5 259.0 +3.3 +9.
Slide 57: Historical Balance Sheet and Cash Flow
HISTORICAL BALANCE SHEET AND CASH FLOW ¤/MLN FY 2010 FY 2009 FY 2008 FY 2007 TANGIBLE ASSETS 57.6 42.0 35.4 33.9 INTANGIBLE ASSETS 126.9 96.6 93.3 65.4 OTHER NON-CURRENT ASSETS 20.2 19.6 10.1 9.2 NET WORKING CAPITAL 106.4 74.5 57.7 46.2 OTHER NON-CURRENT LIABILITIES (28.2) (25.3) (22.9) (22.3) NET C
Slide 58: Installed Base and Revenue per Box
INSTALLED BASE AND REVENUE PER BOX 80.6K 10 –2 0 3,912 4 2 00 % R >10 3,641 C AG 2,975 LIAISON REVENUE 2,510 PER BOX 44.6K 0 2,070 01 0 2 04– R 20 4% G >2 990 CA LIAISON INSTALLED BASE 2004 2007 2008 2009 2010 H1 11 4,000 INSTALLED MACHINES TARGET ALREADY ACHIEVED
Slide 59: H1 2011 Results
H1 2011 RESULTS ¤/MLN H1 2011 H1 2010 H1’11 VS. H1’10 PROFITABILITY IMPROVEMENT DESPITE NEGATIVE FX IMPACT ON SALES SALES 227.1 187.2 +21.3% EBITDA 101.4 80.4 +26.2% IMPROVED TECHNOLOGY MIX % 44.7% 42.9% CLIA revenues: 73.2% (+450bps vs. H1’10) EBIT 88.4 70.9 + 24.6% Higher incidence of high margins
Slide 60: H1'11 Key Numbers
H1’11 KEY NUMBERS H1 2011 SALES BREAK DOWN SALES BY GEOGRAPHY IN €/MLN +16.8 227.1 19.1% +7.1 +1.6 187.2 +9.0 +5.4 MUREX NORTH LATAM APAC AMERICA 4.2% EUROPE & AFRICA 9.3% 67.4% RIA ELISA LIASON INSTRUMENTS + OTHER H1 2010 H1 2011 H1 2011 COSTS BREAKDOWN COSTS COMPONENTS IN €/MLN +3.8 138.8 2.7% +2.
Slide 61: 2011 Expected Results
2011 EXPECTED RESULTS GROWTH ¤/MLN FY 2011 E FY 2010 AS REPORTED CER* SALES ~ 450 405 ~ 11% ~ 13% EBITDA ~ 200 167 ~ 20% ~ 23% * FX change as of 2010 MARGIN ~ 44% 41% CHALLENGING AND TOUGH ECONOMIC ENVIRONMENT, BUT: • STILL DOUBLE DIGIT GROWTH IN SALES • FURTHER IMPROVEMENT IN PROFITABILITY HEALTHY
Slide 62: Stock Price Performance
STOCK PRICE PERFORMANCE 350 300 250 +120.1% 200 150 100 -8.6% 50 -66.5% 7 7 08 8 8 8 8 8 08 9 9 9 9 9 09 0 0 0 0 0 10 1 1 1 1 1 01 01 01 01 01 00 00 00 00 00 00 00 00 00 00 00 00 01 01 01 01 01 20 20 20 20 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 /2 9/ 19 19 19 19 19 9/ 9/ 9/ 1
Slide 63: Target Prices and Ratings
TARGET PRICES AND RATINGS STOCK CURRENTLY TRADING AT A HIGHER DISCOUNT VS. CONSENSUS ESTIMATES AND THE AVG. 12 MONTHS TP 8 7 7 7 7 8 9 9 9 10 11 11 13 # of Brokers 40 38 36 34 32 30 28 26 24 Sep´10 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep´11 Buy + Overweight Hold Sell + Underweight Price Targ
Slide 64: 2012-2015 Strategy
2012-2015 STRATEGY
Slide 65: Business Plan Revenues Main Assumptions
BUSINESS PLAN REVENUES MAIN ASSUMPTIONS VITAMIN D SALES LIAISON SALES MUREX SALES NAT 2011-2015 (EX VITAMIN D) 2011-2015 GENERATING BY 2015 CAGR 2011-2015 CAGR €/MLN SALES 2.2% 21% 7% 15-20 PRICE EROSION IN THE US LAUNCH OF BLOOD FOCUSING AGAINST OTHER WITH THE INITIAL INFECTIOUS AND EUROPE CAGR ~ 7
Slide 66: Business Plan Main Margin Assumptions
BUSINESS PLAN MAIN MARGIN ASSUMPTIONS GROSS MARGINS FLAT ON 2011: >70% PRESSURE IN VITAMIN D PRICES SCALE ECONOMIES IN MANUFACTURING PLANTS REDUCED ROYALTY RATES OPERATING MARGINS: SUSTAINABLE THROUGHOUT THE PERIOD ADDITIONAL INVESTMENT COMPENSATED THROUGH OPERATING LEVERAGE DIASORIN: RIDING A NEW B
Slide 67: DiaSorin Additional Revenues Breakdown
DIASORIN ADDITIONAL REVENUES BREAKDOWN MARKET VALUE WW DIASORIN REVENUES DIASORIN STRATEGY ¤/MLN MARKET SHARE POTENTIAL ¤/MLN 2011E 2015E INFECTIOUS DISEASE WW 850 10% ~ 15% 60-70 Liaison XL to: (EX HEPATITIS AND RETROVIRUSES) - access mid-large clinical labs - accelerate plate conversion - consolid
Slide 68: 2012-2015 Guidance
2012-2015 GUIDANCE ¤/MLN FY 2011 E FY 2015 E SALES ~ 450 630-680 EBITDA ~ 200 > 280 1 0% 5 E~ 01 –2 01 1E G R2 9 % CA 5 E~ 01 –2 01 1E G R2 CA 2011 E 2015 E SALES EBITDA DIASORIN: RIDING A NEW BUSINESS WAVE
Slide 69: Future M&A
FUTURE M&A DIASORIN STRONG BALANCE SHEET AND CASH GENERATION ALLOW US TO LOOK FOR FUTURE ACQUISITIONS IN TERMS OF: CUMULATED FREE CASH FLOW @2015E: ~ 600 CONTENTS EBITDA FY 2015E: > 280 TECHNOLOGIES PRODUCTS DEVELOPMENT OF NET DEBT AND EBITDA NET DEBT / EBITDA RATIO 0.35x 0.25x 0.15x 0.05x (0.05x) (
Slide 70: Riding a New Business Wave
RIDING A NEW BUSINESS WAVE VALUE SUSTAINABLE GROWTH INNOVATION QUALITY COMMITMENT TO CLIENTS