bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2008 Earnings Presentation
52 slides from bioMerieux SA's earnings presentation, Mar 16, 2009
Slide 1: 2008 Results
BIOME|RIEUX 2008 Results March 16, 2009
Slide 2: Disclaimer
Disclaimer This presentation contains information, assumptions and estimates that were used by the Company to determine its Guidance 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 inf
Slide 3: Agenda
Agenda 2008 Business Review Financial Results Objectives Questions and Answers
Slide 4: 2008: an effective business model and strong sales growth
2008: an effective business model and strong sales growth Targets met and strong cash flow generated Growth in sales: up 7.5% like-for-like up 9.8% including recent business development agreements Operating margin Robust business model before non-recurring items: 16.8% of sales Free cash flow *: up
Slide 5: bioMérieux in 2008: demonstrating the power of the business model
bioMérieux in 2008: demonstrating the power of the business model Recurring reagent sales A diversified product portfolio in 4 different areas A global player with operations in the 4 main regions 7.4% 7.5% Growth in sales like-for-like 2008 2007 5.9% 5.7% 5.2% 2006 2005 2004 Molecular North America
Slide 6: Sales by region
Sales by region North America: 22% EMEA **: 60% + 1.6% + 7.5% (+ 9.6% excl. France) €1,111m + 7.5%* Latin America: 7% Asia-Pacific: 11% + 15.8% + 15.2% + 9.8% - At constant exchange rates, including business development * Growth rates are like-for-like ** EMEA: Europe, Middle East and Africa 5
Slide 7: EMEA: up 7.5%
Europe – Middle East – Africa EMEA: up 7.5% EMEA outside France: up 9.6% Sales in France up 2.2% Growth in line with the market Laboratories hesitant: Ballereau Report Robust growth in Europe outside France: Germany: up 12% Spain: up 8% UK: up 7% 60% South African subsidiary off to a good start €663
Slide 8: North America: up 1.6%
North America North America: up 1.6% Reagent sales up 6% Mainly private-sector customers Labs already extensively automated 22% Weak instrument sales, down 20% €243m Postponed purchases of new systems Growth rates are like-for-like 7
Slide 9: Asia-Pacific: up 15.2%
Asia-Pacific Asia-Pacific: up 15.2% Robust growth: China: up 24% South Korea: up 16% India: up 27% 11% Strong sales in microbiology and the VIDAS® range €129m Industrial applications up 22% Start-up of the Sysmex joint-venture in Japan on April 1, 2008 Growth rates are like-for-like 8
Slide 10: Latin America up 15.8%
Latin America Latin America up 15.8% Strong momentum across the region Brazil: up 9% Solid growth in microbiology 7% Satisfactory growth in microplates €76m Rapid expansion in Industrial applications Growth rates are like-for-like 9
Slide 11: Sales by technology
Sales by technology 51% Microbiology Immunoassays Industry Molecular biology Other 27% 15% 5% 2% 2008 €21m vs. 2007* Clinical applications €944m + 7.2% Microbiology €562m + 6.9% Immunoassays €304m + 5.7% Molecular biology €57m + 17.6% Industrial applications €167m + 9.7% TOTAL €1,111m + 7.5% * Growt
Slide 12: Installed base
Installed base Installed base at Dec. 31 - Number of instruments 2008 – Breakdown of sales 53,100 2007 2008 Instruments 12.7% 11.0% 49,200 45,400 41,500 Services 4.8% 5.1% Reagents and and other Services Recurring sales 82.5% 83.9% 89% of sales Reagents 2008: up ≈10% 2005 2006 2007 2008 2007 2008 Gr
Slide 13: Strategic vision: deployment by technology
Strategic vision: deployment by technology 2008 Micro- Industrial Immuno- Molecular biology applications Theranostics developments assays biology VITEK® ANC card TEMPO®: In the US: In the US: Menus PolyVitex STA / LAB / YM VIDAS® PNA FISHTM & ranges Chocolate PPM VIDAS® UP NT-proBNP room temperature
Slide 14: Strategic vision: cross-business deployment
Strategic vision: cross-business deployment 2008 Micro- Industrial Immuno- Molecular biology applications Theranostics developments assays biology 2 joint ventures: Japan (Sysmex) and China (Shanghai Kehua Bio-engineering) Subsidiaries 2 new subsidiaries: Singapore and Dubai Capital expenditure Sain
Slide 15: Microbiology: Full Microbiology Lab Automation
Microbiology: Full Microbiology Lab AutomationTM Become the uncontested leader through full microbiology lab automation http://www.biomerieux-diagnostics.com/fmla 14
Slide 16: PREVI Isola
PREVITM Isola Automates pre-analytical processing Automates specimen inoculation Standardized plate inoculation • Up to 180 plates/hour No cross contamination Traceability with automated barcode labeling Optimized colony isolation Market launch Pre-launched in 2008 in the Netherlands, Germany and th
Slide 17: PREVI Color GRAM
PREVITM Color GRAM Automates pre-analytical processing Automates gram staining Standardized processes • Slides dry and ready in 3-5 minutes Optimized reagent use • Less waste • User safety Accurate results • Spray nozzles • No cross contamination Market launch Pre-launch in about 10 European countri
Slide 18: TEMPO: major innovations
TEMPO®: major innovations Faster development in 2008 Reagent sales up ≈ 75% Sharp increase in the installed base Enhanced TEMPO® menu Staphylococcus aureus, lactic acid bacteria, yeast and molds Most of the required indicators TANGOTM: single LIMS* interface for VIDAS® and TEMPO® Making data managem
Slide 19: 3 strategic acquisitions
3 strategic acquisitions High medical-value tests in oncology, theranostics, etc.: new sources of growth bioTheranostics (AviaraDx) DIVERSILAB BTF AB BIODISK PML Microbiologicals BIOMEDICS Infectious diseases: bioMérieux’s core competency 18
Slide 20: AB BIODISK: strong synergies
AB BIODISK: strong synergies Etest®: a reference in microbiology labs Used to determine the exact Minimum Inhibitory Concentration (MIC) of antibiotics, antifungal agents and antimycobacterial agents Over 100 antibiotics available in the test menu Very complementary to bioMérieux’s range VITEK® and
Slide 21: PML Microbiologicals
PML Microbiologicals A reagent company that holds proprietary technologies Based in Portland, Oregon US and Toronto, Canada 2008 sales: $25m 172 employees Strengthens microbiology positions in North America Microbiological control testing for the US pharmaceuticals industry Canada’s leading provider
Slide 22: Clinical microbiology: 2008 market share
Clinical microbiology: 2008 market share * 40% 36% - 38% 35% 28% - 30% 30% 25% 20% 13% - 15% 15% 10% - 12% 8% - 10% 10% 5% 0% Becton Thermo- Siemens Other Dickinson Fisher bioMérieux is the market leader in microbiology *bioMérieux estimates based on company reports, financial research and internal
Slide 23: AviaraDx, renamed bioTheranostics
AviaraDx, renamed bioTheranostics A strategic acquisition Strengthens bioMérieux’s positioning as a provider of high medical-value diagnostics Strengthens bioMérieux’s position in oncology and theranostics • Tissue testing capabilities An experienced team Based in San Diego, California - US High com
Slide 24: Integrating bioTheranostics
Integrating bioTheranostics New organization Richard Ding - Chief Executive Officer Run as stand-alone company entrepreneurial mindset and flexibility Expanded sales force for nationwide coverage in the US Penetrating market for metastatic cancers of unknown primary testing December 2008: publicatio
Slide 25: ADNA to develop personalized medicine
ADNA to develop personalized medicine Advanced Diagnostics for New therapeutic Approaches Project coordinated by Mérieux Alliance and supported by OSEO the French public agency for research and innovation aid Main partners Diagnostics: bioMérieux and GenoSafe Immunotherapy: Généthon and Transgene Co
Slide 26: Substantial capital expenditure
Substantial capital expenditure Main capex projects in 2008 Grenoble: €18m Transfer of Boxtel operations Construction of manufacturing facilities, labs and engineering offices, installation of new equipment Saint Louis, MO US: €6m New building to replace leased R&D facility Marcy l’Etoile - Industry
Slide 27: Ambitious internal projects to build the future
Ambitious internal projects to build the future Global ERP - SAP Objective: meet the Group’s operating needs and speed decision-making Implementation • Standard, harmonized business processes • An experienced, dedicated team bioMérieux Goes Green Objective: build environmental issues into the decisi
Slide 28: Agenda
Agenda 2008 Business Review Financial Results Objectives Questions and Answers
Slide 29: Consolidated income statement
Consolidated income statement in € millions 2008 2007 % change Net sales 1,111 1,063 + 4.5%* Operating income 187 167 + 12% before non-recurring items As a % sales 16.8% 15.7% Operating income 186 150 + 24% As a % sales 16.8% 14.1% Net income 130 98 + 33% As a % sales 11.7% 9.2% * + 7.5% like-for-li
Slide 30: Net sales
Net sales Hemostasis Organic Business US microplates growth development + €2m Hemostasis + €24m US microplates + 2.3% - €21m Currency + €79m Biomedics effect + 7.5% BTF Omnimed ABB AviaraDx - €36m PML €1,111m Sysmex AdvanDx €1,063m Quidel €1,042m + 9.8% 2007 2007 2008 adjusted 29
Slide 31: Growth in gross profit
Growth in gross profit Business development Other Organic growth + €9m - €16m Gross profit Hemostasis + €42m Gross profit US microplates - €8m €593m €566m Sales: + €79m 53.4% x 53.2% of sales 53.2% of sales + €27m 2007 2008 30
Slide 32: Growth in gross profit
Growth in gross profit Business development Other Organic growth + €9m - €16m Gross profit Hemostasis + €42m Gross profit US microplates - €8m €593m €566m - Loss of margin Sales: + €79m 53.4% on divested or x 53.2% discontinued of sales operations 53.2% of sales + Restructuring (155 positions) + €27
Slide 33: Growth in gross profit
Growth in gross profit Business development Other Organic growth + €9m - €16m Gross profit + High margin businesses Hemostasis + €42m (ABB, BTF) Gross profit US microplates - Dividends - €8m - Impact of goodwill allocation €593m €566m 53.4% of sales 53.2% of sales + €27m 2007 2008 32
Slide 34: Growth in gross profit
Growth in gross profit Business development Other Organic growth + €9m - €16m Gross profit + High margin Hemostasis businesses + €42m (ABB, BTF) Gross profit US microplates - Unfavorable - Dividends currency effect - €8m - Impact of - Higher goodwill transportation costs allocation - Higher royalty
Slide 35: Growth in operating income before non-recurring items
Growth in operating income before non-recurring items Operating Gross profit SG&A income before non-recurring Royalties R&D items - €8m received - €1m Operating + €2m income before +€27m non-recurring items €187m €167m 16.8% of sales 15.7% of sales + €20m 2007 + 12% 2008 34
Slide 36: Growth in operating income before non-recurring items
Growth in operating income before non-recurring items Operating Gross profit SG&A income before non-recurring Royalties R&D items - €8m received - €1m Operating + €2m income before +€27m non-recurring items €187m Exchange rates €167m Euro : 47% of net sales 16.8% of sales US dollar • 25% of net sale
Slide 37: Growth in operating income before non-recurring items
Growth in operating income before non-recurring items Operating Gross profit SG&A income before non-recurring Royalties R&D items - €8m received - €1m Operating + €2m income before +€27m non-recurring 25.8% of sales items 26.1% in 2007 €187m €167m 16.8% of sales 15.7% of sales + €20m 2007 + 12% 2008
Slide 38: Growth in operating income before non-recurring items
Growth in operating income before non-recurring items Operating Gross profit SG&A income before non-recurring Royalties R&D items - €8m received - €1m Operating + €2m income before +€27m non-recurring 25.8% of sales items 26.1% in 2007 12% of sales 12.4% in 2007 €187m ADNA grant €167m 16.8% of sales
Slide 39: Growth in operating income before non-recurring items
Growth in operating income before non-recurring items Operating Gross profit SG&A income before non-recurring Royalties R&D items - €8m received - €1m Operating + €2m income before +€27m non-recurring 25.8% of sales items 26.1% in 2007 €2m decline in 12% of sales BD royalty 12.4% in 2007 income €187
Slide 40: Strong growth in net income
Strong growth in net income Other non-recurring income and Net financial expense expense Income tax Net income Operating - €8m + €4m income before + €16m non-recurring items + €20m Net income €130m 11.7% of sales €98m 9.2% of sales + €32m 2007 + 33% 2008 39
Slide 41: Strong growth in net income
Strong growth in net income Other non-recurring income and Net financial expense expense Income tax Net income Operating - €8m + €4m income before + €16m non-recurring items + €20m 2008: - €1m Restructuring Net income in Japan and Italy €130m Boxtel transfer Reversal of the DBV provision 11.7% of sa
Slide 42: Strong growth in net income
Strong growth in net income Other non-recurring income and Net financial expense expense Income tax Net income Operating - €8m + €4m income before + €16m non-recurring items 2008 €2.5m increase in interest 2008: - €1m expense + €20m Restructuring 2007 Net income in Japan and Italy €3.3m capital €130
Slide 43: Strong growth in net income
Strong growth in net income Other non-recurring income and Net financial expense expense Income tax Net income Operating - €8m + €4m income before + €16m non-recurring items Average income 2008 €2.5m increase tax rate in interest 2008: 28.2% 2008: - €1m expense Research tax credit + €20m Restructuri
Slide 44: Earnings per share
Earnings per share + 33% - 7% €3.29 Recommended dividend €2.67 €0.81/share (€32m) 2,48 € €2.48 2006 2007 2008 43
Slide 45: Strong Free Cash Flow generation
Cash flow statement Strong Free Cash Flow generation in € millions 2008 2007 % Change EBITDA (1) 262 239 + 23 Provisions and other (3) (1) (2) Cash flow before tax and interest expense 259 238 + 21 Income tax and financial expense (60) (56) (4) Operating working capital requirement (4) (8) +4 Acquis
Slide 46: Strong capital expenditure
Capital expenditure Strong capital expenditure 2007 2008 2006 €40m €37m Instruments 2009 - 2010: €47m Capex expected to increase by €30m a year Capacity needs Other capital €57m Global ERP expenditure €51m Transfers of operations €41m related to the Boxtel closure Total €88m €91m €94m % of sales 8.5
Slide 47: A strong balance sheet, providing financial flexibility
Summarized balance sheet A strong balance sheet, providing financial flexibility Assets Liabilities Goodwill 2007: €77m €168m Operating WCR under control: Instruments 2007: €67m €65m 20.6% of sales vs. 21.1% in 2007 Equity Other non- €688m 2007: €601m Syndicated line of credit: current assets €380m
Slide 48: Agenda
Agenda 2008 Business Review Financial Results Objectives Questions and Answers
Slide 49: 2009 objectives: sales
2009 objectives: sales A challenging financial and economic environment Uncertainties concerning instrument sales, particularly in North America Greater exposure of Industrial applications to the economic environment Sales Organic growth 5 to 7 % - Like-for-like Total growth 7 to 9 % - Including bus
Slide 50: 2009 objectives: operating margin before non-recurring items
2009 objectives: operating margin before non-recurring items Operating margin before non-recurring items: about 16% - at 2008 exchange rates Including lower royalties received - Becton Dickinson and other non-recurring sources Including bioTheranostics’ operating losses Excluding the cost of closing
Slide 51: Conclusion
Conclusion Diagnostics: a high potential market Play a critical role in addressing the challenges of personalized medicine Many medical needs are still unmet in infectious diseases and oncology bioMérieux: solid fundamentals Innovation driven Sustained investments in R&D, infrastructures and acquisi
Slide 52: Questions and Answers
Agenda 2008 Business Review Financial Results Objectives Questions and Answers