Eurofins Scientific Se · EURONEXT:ERF
Eurofins Scientific — Investor Presentation (February 2022)
89 slides from Eurofins Scientific's investor presentation, February 2022
Slide 1: Eurofins Corporate Presentation
CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd, 2020. All rights reserved. This document contains information that is confidential and proprietary to Eurofins Scientific SE and / or its affiliates and is solely for the use of the personnel of Eurofins Scientific SE and all its af
Slide 2: Disclaimer
Disclaimer This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase securities in Eurofins Scientific S.E. and neither this document nor anything contained or referred to in it shall form the basis of, or be relied on
Slide 3: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an
Slide 4: Key business highlights
Key business highlights • Despite multiple lockdowns, our Core Business1 continued to demonstrate strong resilience and growth • Core Business organic growth of 12.3% in FY 2021 vs. FY 2020, +11.9% vs. FY 2019 adjusted for cyber-attack (+12.6% in Q4 2021 vs. Q4 2019) • Significant business confidenc
Slide 5: Key financial highlights
Key financial highlights Reported Revenues Core Business2 Org. Growth3 Adjusted4 EBITDA5 Adjusted4 EBITDA Margin €6.7bn ▲24%1 12.3% vs. FY 2020 €1,902m ▲35%1 28.3% ▲230bps1 +6% vs. objective 11.9% vs. FY 201911 +12% vs. objective FCFF before investment Adjusted4 EPS6 in owned sites9 Free Cash Flow t
Slide 6: Eurofins' Mission is to contribute to global Health, Safety & Environment
Eurofins’ Mission is to contribute to global Health, Safety & Environment with the best in bioanalysis Eurofins provides testing services in • Founded in 1987 four main areas that have a strong • IPO on 24 October 1997 at €0.183 impact on human health • Eurofins’ share price has multiplied by 595 ti
Slide 7: Drivers for high long-term above GDP market growth
Drivers for high long-term above GDP market growth Secular Underlying General Market Drivers Laboratory Market Drivers Fundamentals Demand for safe pharmaceuticals, Increasing wealth Consumer quality food and clean environment and quality of Life expectations for protection Consolidation of the frag
Slide 8: Growth through innovation
Growth through innovation Some 2021 innovations Food and Feed Testing Services: • Developed an update to ICP-MS method to determine heavy metal limits and levels of arsenic, cadmium, lead & mercury in baby food products, in line with the Baby Food Safety Act of 2021 • Launched new method for the rap
Slide 9: Becoming Leader in Non-Invasive Prenatal Testing (NIPT) in Europe and Japan
Some of Eurofins’ Innovations: Becoming Leader in Non- Invasive Prenatal Testing (NIPT) in Europe and Japan • Eurofins is the No. 1 player in the fast growing European NIPT market with ca. 150,000 non-invasive prenatal tests performed per year in 2019-2021 vs. ca. 100,000 tests in 2018 • Eurofins of
Slide 10: Onconext - Next Generation Oncology Diagnostics
Some of Eurofins’ Innovations: Onconext - Next Generation Oncology Diagnostics • Onconext from Eurofins Genoma is an advanced molecular diagnostics solution for personalised cancer care that uses state of the art technology • The team comprises multidisciplinary professionals specialised in molecula
Slide 11: Business line description
Eurofins is present in several high growth Life Sciences markets which are critical for battling the COVID-19 pandemic Oligonucleotides Production and In Vitro Diagnostic (IVD) products Next Generation Sequencing (NGS) #3* worldwide Eurofins’ Start-up #1* in Europe position Start 2016 Start 2000 Eur
Slide 12: Life Sciences and IVD products to fight the COVID-19 pandemic
Life Sciences and In Vitro Diagnostic (IVD) products to fight the COVID-19 pandemic Eurofins Technologies • Eurofins Technologies has developed a full range of COVID-19 testing products since March 2020 to support SARS-CoV-2 detection and COVID-19 control globally. In 2021, the R&D and commercial ac
Slide 13: ELISA automation platforms
ELISA automation platforms Gold Standard Diagnostics (GSD) offers industry-leading ELISA analysers ▪ Low total cost of ownership for instrumentation, consumables, customer support ▪ Innovative, industry-leading open platform instruments: ThunderBolt® and The BOLTTM The ThunderBolt® The BOLTTM Open p
Slide 14: Fastest growing TIC company with attractive and resilient organic growth
Fastest growing TIC company which became the leader of an industry with attractive and resilient organic growth • Market Structural growth: est. ~1.5-2.0x Gross Domestic Product growth • Globalisation, urbanisation and outsourcing increasing need and demand for a healthier life and safer environment
Slide 15: Infrastructure plan update: hub and spoke laboratories platform
Infrastructure plan update: building a one-of-a-kind hub and spoke laboratories platform for global leadership in our markets to capture scale advantages • Building large high throughput laboratory campuses (hubs of the hub and spoke structure) As of the end of 2021, Eurofins occupied more than 1,60
Slide 16: Start-ups an increasingly attractive investment
Start-ups an increasingly attractive investment as we leverage our scale and experience 201 laboratories start-ups between 2000 and 2021 Substantial acceleration offers tremendous growth potential 1) Acceleration in laboratories start-up programmes Where we are building start-up labs • 25 start-ups
Slide 17: Good track record of integrating acquired businesses
Eurofins has a good track record of successfully integrating acquired businesses Good pipeline of M&A opportunities 60 500 437 Cumulative number of acquisitions 450 Average number of acquisitions 399 50 373 400 347 350 40 56 300 235 per year 30 250 200 20 127 38 150 26 26 100 10 18 10 per year 50 pe
Slide 18: Exceptional Business Performance: strong revenue growth
Exceptional Business Performance Strong revenue growth Illustration of Eurofins’ historical revenue growth €6.72bn 6,000 €5.44bn 5,000 €4.56bn Revenues (€m) 4,000 €3.78bn €2.97bn 3,000 €2.54bn 2,000 €1.95bn €1.41bn €1.23bn €1.04bn 1,000 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 CONFIDENTIA
Slide 19: Strong contribution to fight COVID-19 pandemic
Strong contribution to fight COVID-19 pandemic • Continued innovation to support fight against pandemic: • CE-marked multiplex kits to detect and differentiate 3 viral infections in same PCR run (SARS-CoV-2, Influenza and RSV) • Added virus variant monitoring capabilities to wastewater, food and env
Slide 20: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning: Overview of Markets Served & Structure ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd 2021. All rights reserved. Any use of this material
Slide 21: Leading global and local market positions (1/2)
Leading global and local market positions in attractive high-growth markets* (1/2) Testing for Food & Feed Testing Environment Testing Clinical Diagnostics Pharma/Biotech/Agrosciences Eurofins N°1 to N°3* N°1* N°1* Start-Up position worldwide worldwide worldwide Start 2014 Start 2000-2005 Start 1987
Slide 22: Leading global and local market positions (2/2)
Leading global and local market positions in attractive high-growth markets* (2/2) Testing for Food & Feed Testing Environment Testing Clinical Diagnostics Pharma/Biotech/Agrosciences N°1 to N°3* N°1* Eurofins N°1* Start-Up worldwide worldwide position worldwide Start 2014 Start 2000-2005 Start 1987
Slide 23: Eurofins Pharma Services in more detail
Eurofins Pharma Services in more detail Spanning the entire drug development cycle Genomics Discovery Pre-clinical/ Early Clinical (Central Development BioPharma Pharmacology Development Laboratory/ & Manufacturing Products Testing Bioanalytical) (CDMO) High-throughput-screening Biomarkers Pharmaceu
Slide 24: Building leadership positions with network effects and competitive advantage
Building leadership positions in an industry with significant network effects and competitive advantage for the market leader • High level of investment and innovation required to build and efficiently run a network of High barriers modern laboratories (buildings, equipment, IT infrastructure and so
Slide 25: Building the Platform – Eurofins 2012 - Eurofins 2021
Building the Platform – Eurofins 2012 - Eurofins 2021 2012-2021 ∆ 2012 2015 2019 2020 2021 +9 years Revenues (€ m) 1,044 1,950 4,563 5,439 6,718 23% CAGR Employees 10,890 18,382 43,320 50,000 58,000 20% CAGR (total headcount) Number of laboratories 170 225 >800 >800 900 Over 5x (year-end) Number of
Slide 26: Eurofins is the leader in most of its markets
Eurofins is the leader in most of its markets and continues to build global & local leadership positions* in markets where scale matters New Markets 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Denmark: Food and Environment Testing Sweden, Norwa
Slide 27: Large majority of revenues from markets with global leadership
Overall, a large majority of Eurofins’ revenues come from markets where the Group has established global leadership positions Business Line Global leadership position Food & Feed testing ✓ These global Environment testing ✓ leadership Clinical Diagnostics positions are the basis to BioPharma Product
Slide 28: Eurofins is present in countries generating over 88% of world GDP
Eurofins is already present in countries generating over 88% of the world’s GDP… but still has lots of room to grow International Monetary Fund Eurofins market presence (Estimates as of October 2021) (To the best of Eurofins’ knowledge, based on data available to the Group) Country GDP ($tn) % of wo
Slide 29: In only 34 years we built a unique global network
1987 – 2021: In only 34 years we built a unique global network From 1 laboratory in Nantes (France) in 1987 to 900 laboratories around the world in 2021! From 4 employees in 1987 to 58,000 in December 2021! Now operating in 54 countries! Eurofins ‘ site map at 31 December 2021 CONFIDENTIAL AND PROPR
Slide 30: Global trends in regulation support the business
Global trends in regulation support the business • Strongly regulated markets (EU, U.S.) are still amending and adding regulations • Eastern European countries catching up with EU regulations • Fast development of regulation in Asia • Regulation used for support of trading blocks (e.g. EU, NAFTA, AS
Slide 31: Outsourcing adds to market growth
Outsourcing adds to market growth Examples of laboratories outsourced to Eurofins Company Outsourced Activity Country Fujitsu Quality Lab Specialised Material Sciences Japan MML Alrijne Clinical Diagnostics Netherlands Labser Food and Feed testing Spain Axéréal & Terrena Galys agricultural laborator
Slide 32: Meaningful industry consolidation is underway
Meaningful industry consolidation is underway Selection of recent significant transactions in the testing industry Date Company Acquirer Geography Sales (€m) EV (€m) EV/Sales (x) EV/EBITDA (x) 2021 December PPD, Inc. Thermo Fisher Scientific US 4,126 18,718 4.5x 24.2x 2020 November Synlab Analytics
Slide 33: Strategy aims at building long lasting competitive advantage
Eurofins’ strategy aims at building long lasting competitive advantage in very attractive markets Leading technology Quality of customer service • Competence Centres & R&D activities • Extensive expertise in local regulations for all major markets, and one-stop contact for compliance in multiple cou
Slide 34: Family-owned businesses grow faster and outperform peers
IMD and Credit Suisse reports show that family-owned businesses grow faster and outperform their peers * Credit Suisse* Supported by superior growth and profitability Revenue and EBITDA growth is stronger, EBITDA margins are higher and cash flow returns are better. Family-owned companies also appear
Slide 35: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Biopharma Testing Services ▪ Food Testing ▪ Environment Testing ▪ Clinical Diagnostics ▪ Other ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland
Slide 36: The Pharma testing market is both healthy and full of potential
The Pharma testing market is both healthy and full of potential Need for big pharma Rapid technological change & companies to expand increasing complexity in testing new drugs pipelines require ongoing investment in technology & expertise • The increasing complexity of clinical trials leads to incre
Slide 37: Underlying trends are intact for continued growth
Underlying trends are intact for continued growth Worldwide Drug R&D Spending ($ bn) • The Drug Discovery market is growing rapidly thanks to increasing R&D budgets, applicability of big data and artificial intelligence and cost optimisation requirements. It is estimated to grow at a CAGR of 14.3% b
Slide 38: More than 90% of top 20 biopharma companies are clients
More than 90% of the top 20 largest global biopharma companies are clients of Eurofins Eurofins biopharma locations Top 10 global biopharma companies* Johnson & Johnson (US) Roche (CH) Pfizer (US) Abbott (US) AbbVie (US) Novartis (CH) Merck (US) Eli Lilly (US) Novo Nordisk (DK) AstraZeneca (UK) Euro
Slide 39: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Biopharma Testing Services ▪ Food Testing ▪ Environment Testing ▪ Clinical Diagnostics ▪ Other ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland
Slide 40: The Food testing market enjoys robust growth drivers
The Food testing market enjoys robust growth drivers Food scares and Globalisation: Raw Consumers’ increasing Outsourcing of crises, widely materials sourced awareness and demand industry’s internal covered in the media from countries with for safe and high quality or state- owned different QC food
Slide 41: Food & Feed testing offering is the most comprehensive
Eurofins’ Food & Feed testing offering is the most comprehensive in the market Agricultural production, product Production Retail & Distribution development Microbiology Sensorial Dioxins Veterinary drug Vitamins Quality Control residues Authenticity Pesticides Organic residues POPs Labelling GMO My
Slide 42: High profile food scares have expensive consequences for producers
High profile food scares have expensive consequences for producers… Brand / Year Contamination Impact Cost Source Country 2022 Interstate Meat E. Coli O157:H7 contaminating Recall of approximately 28,356 pounds of ground beef products that may be contaminated with E. coli O157:H7 Unquantified Food S
Slide 43: Meeting the demands of global players for high quality testing
Eurofins is meeting the demands of global players for high quality testing The largest global food & beverage producers and retailers are clients of Eurofins Food and Beverage Retailers Nestlé Switzerland Wal-Mart Stores USA PepsiCo USA CostCo USA Unilever UK /Netherlands Kroger USA Mars USA Lidl Ge
Slide 44: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Biopharma Testing Services ▪ Food Testing ▪ Environment Testing ▪ Clinical Diagnostics ▪ Other ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland
Slide 45: The Environmental testing market continues to grow
The Environmental testing market continues to grow Rise in Progress in epidemiology contamination & & medicine has identified pollution issues more compounds as toxic ▪ Increasing demand by citizens for a clean environment ▪ EU expanding regulation (e.g. REACH) ▪ Increasingly long list of products i
Slide 46: Eurofins serves all the main environmental testing markets
Eurofins serves all the main environmental testing markets Eurofins is the No.1 environmental testing service provider in the world* Consulting and sampling companies are natural partners Lancaster Environmental Testing is the laboratory of choice for Fortune 500 companies in the USA Eurofins’ site
Slide 47: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Biopharma Testing Services ▪ Food Testing ▪ Environment Testing ▪ Clinical Diagnostics ▪ Other ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland
Slide 48: Global network of clinical genetics laboratories
Eurofins is setting up a global network of clinical genetics laboratories • Nowadays, Clinical Genetics is a central element in healthcare and Clinical Diagnostics, contributing to every stage of patient care • Throughout all three of Eurofins’ start-up programs, several large investments in global
Slide 49: Expanding global offering in non-invasive prenatal testing
Eurofins is expanding its global offering in non-invasive prenatal testing (NIPT) In September 2017, Eurofins’ Genoma introduced GeneSafeTM, the first non-invasive prenatal test that screens for both de novo (non-inherited gene mutations) and inherited single-gene disorders. ▪ GeneSafeTM detects ove
Slide 50: Specialised Clinical Diagnostic Network Evolution
Eurofins Specialised Clinical Diagnostic Network Evolution Establishing platform to deploy genomics expertise for development of Genomics is one of the key technologies innovative clinical diagnostic tests to serve global healthcare community enabling personalised medicine One of the world’s leaders
Slide 51: Specialised Clinical Diagnostic Footprint
Eurofins Specialised Clinical Diagnostic Footprint Establishing leadership in targeted higher-growth niche areas of the clinical testing market Clinical Genetics Japan Clinical Diagnostics Pte Ltd CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use
Slide 52: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Biopharma Testing Services ▪ Food Testing ▪ Environment Testing ▪ Clinical Diagnostics ▪ Other ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland
Slide 53: Global leadership positions in 5 high potential niche markets
Eurofins has also established global leadership positions in 5 high potential niche markets Agroscience CRO** Advanced Materials Genomic Services Discovery Pharmacology Cosmetics Testing Services Sciences N°2* N°1* N°1* N°1* N°1* Worldwide Eurofins position worldwide worldwide worldwide worldwide N°
Slide 54: Developing high barriers to entry around its businesses
Eurofins is developing high Barriers to Entry around its businesses Offering a premium quality service … ... and leveraging internal efficiencies • Portfolio: over 200,000 analytical methods – unique in the • Industrialising the laboratory process: rationalisation of world and ahead of competition s
Slide 55: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an
Slide 56: Very strong results ahead of the Group's most recent objectives
Very strong results ahead of the Group’s most recent objectives Full Year 2021 Full Year 2020 +/- Δ +/- Δ In €m except Adjusted1 SDIs2 Reported Adjusted1 SDIs2 Reported • Very strong revenue growth in Adjusted Reported otherwise stated Results Results Results Results FY 2021 exceeding by 6% the Resu
Slide 57: Net working capital intensity stable in FY 2021
Net working capital intensity stable in FY 2021 NWC intensity 1.6% Inventory 2.3% 2.1% 79 157 154 • Overall Net Working Capital stable year-on-year FY 2019 FY 2020 FY 2021 5.3% 20.4% • Some increase in accounts receivable1 4.5% 4.5% 19.1% Accounts 17.5% receivable related to COVID 328 1,001 activiti
Slide 58: Increased capex in 2021
Increased capex in 2021 to capitalise on large future market opportunities and to own our laboratories Net capex (€m) Infrastructure1 & IT² capex (€m) • 2021 Capex split: Net IT² • 77% Net operating capex: operating Machinery and Laboratory Equipment capex o 18% IT Leashold Improvements (LHI) & othe
Slide 59: Very robust liquidity position at year end
Very robust liquidity position at year end Leverage1 Debt maturity profile (€m) • Net debt of €2,239m at the end of 800 Dec 2021 (stable yoy) Hybrid (1st call) Schuldschein Eurobond 700 • €401m decrease in gross debt 3.5x 3.4x • Eurofins used none of its bilateral 600 credit lines in 2021 500 • Leve
Slide 60: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) ROCE & ROCE excluding Goodwill1 80% 70% 68% ▪ ROCE was diluted during the 2016-2020 investment phase (M&A, laboratory expansion, start-ups, IT investment) 60% 51% 51% ▪ Goodwill from M&A increased the capital base by €2,553m with 48% over 110 acquisitions in 2017 an
Slide 61: Solid Balance Sheet
Solid Balance Sheet Hybrid – Ba2/BB rated Eurobond – Baa3/BBB- rated • €300m hybrid issued in September 2019, callable at par by • €650m Eurobond issued in Jul 2017 with a nominal amount Eurofins in August 2022. Bears a fixed coupon of 2.875% until outstanding of €447.7m, 7-yr maturity (Jul 2024) at
Slide 62: Audit Coverage Continued Expansion
Audit Coverage Continued Expansion In 2019, the AGM appointed Deloitte Audit as auditor resulting in improved audit coverage by Tier 1 and Tier 2 auditors. For the year ended 31 December 2021 the coverage of Deloitte Audit and other auditors was as follows: 2021 accounts 2020 accounts Audit coverage
Slide 63: M&A has consistently created value
M&A has consistently created value Covance Food Solutions TestAmerica • Acquired in August 2018 • Acquired in October 2018 • Enabled Eurofins to become leader in US Food & Feed Testing • Enabled Eurofins to become leader in US Environment Testing market (previously 2nd-3rd largest player) market (pr
Slide 64: Case study: Covance Food Solutions (CFS) 1/2
M&A Value Creation Case study: Covance Food Solutions (CFS) 1/2 Integration in US Food & Feed Testing Laboratory Network • Acquisition of CFS brought 9 facilities to US network • 7 new laboratories renovated or newly constructed to optimise hub & spoke network • 6 of the CFS facilities in the US wer
Slide 65: Case study: Covance Food Solutions (CFS) 2/2
M&A Value Creation Case study: Covance Food Solutions (CFS) 2/2 Key highlights Key drivers of value creation • CFS acquired in August 2018 from LabCorp • 12 facilities (9 US, 2 UK, 1 Singapore) • Acquisition rationale: • Significantly strengthened scale and scientific depth of US Food & Feed Testing
Slide 66: Case study: TestAmerica (TA) 1/2
M&A Value Creation Case study: TestAmerica (TA) 1/2 Integration in US Environment Testing Laboratory Network • Acquisition of TA brought 24 laboratories to US network • 7 new laboratories renovated or newly constructed to optimise hub & spoke network • 10 of TA laboratories and 6 of Eurofins laborat
Slide 67: Case study: TestAmerica (TA) 2/2
M&A Value Creation Case study: TestAmerica (TA) 2/2 Key highlights Key drivers of value creation • TestAmerica acquired in October 2018 from JSTI Group Environment testing and sampling still affected by COVID in 2020 and 2021 • 24 full service testing laboratories and 40 service centres throughout t
Slide 68: Case study: EAG Materials & Engineering Sciences
M&A Value Creation Case study: EAG Materials & Engineering Sciences (MS/ES) Key highlights Key drivers of value creation • EAG acquired in September 2017 from Odyssey Investment Partners • Acquisition rationale: • 21 laboratories in 18 locations worldwide • Capabilities in Agroscience testing turned
Slide 69: Case study: DiscoverX
M&A Value Creation Case study: DiscoverX Key highlights Key drivers of value creation • DiscoverX acquired in 2017 • 4 facilities (3 US, 1 UK) • Acquisition rationale: Financial performance • DiscoverX was a leader in drug discovery products and services across all stages of discovery • Eurofins Pha
Slide 70: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an
Slide 71: Contributing to 16 of 17 UN Sustainable Development Goals
Eurofins is positively contributing to 16 of 17 United Nations Sustainable Development Goals (UNSDGs) We are aligned with 16 out of 17 UNSDGs both at central level, through the Eurofins Foundation and through the activities of our business lines CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (
Slide 72: Our Businesses are ESG positive
Our Businesses are ESG positive • We help improve health outcomes, ensure food safety and protect the environment • E.g., our Environment, Food and Feed Laboratories: o Assess safety of the whole water cycle and analyse waste toxicity o Monitor air pollution and soil quality o Contribute to developi
Slide 73: We are an ESG enabler for our clients
We are an ESG enabler for our clients • We help our clients safeguard the environment and promote human health. • Our broad portfolio of testing services contribute to a more sustainable society in countless ways, including: o Plant and crop diagnostic services to proactively detect crop damage and
Slide 74: Our ESG roadmap
Our ESG roadmap 1. Embed ESG targets into leadership performance and remuneration from 2021 2. Carbon neutrality by 2025: a. Launch a carbon footprint reduction programme at regional level, managed by our Business Leaders b. Establish a CO2 inventory (scope 1, 2, 3) by 2022 c. Set 2022-2023 CO2-quan
Slide 75: Sustainability remains at the heart of Eurofins' activities
Sustainability remains at the heart of Eurofins’ activities In 2021 the Group continued to embed best practices and make further progress on all three dimensions of ESG: • Established Sustainability and Corporate Governance Committee at Board level to demonstrate focus and commitment on these import
Slide 76: Global Equality Driving Excellence Initiative (EDE)
Global Equality Driving Excellence Initiative (EDE) 2021 Achievements and 2022 Goals 2021 Achievements 2022 Goals Advanced Gender Equality in Leadership Increased Improved Expand Talent Development Roll Out Percentage of Women Corporate Eurofins Initiatives to Fuel Breaking the Bias Job Level 19- 20
Slide 77: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd 2021. All rights reserved. Any use of this material without the specific permission of an a
Slide 78: 2021 was another year of significant progress
2021 was another year of significant progress Reported Revenues, €m 8,000 7,000 6,718 6,237 6,138 5,905 5,925 6,000 5,471 5,566 5,422 5,312 5,439 5,188 5,100 4,981 4,689 4,796 5,235 5,000 4,635 4,549 4,172 4,601 3,902 3,933 4,563 3,781 4,000 3,375 3,241 3,129 3,165 2,901 3,000 3,084 2,321 2,468 2,36
Slide 79: Upgraded objectives
Increased confidence around Core Business growth and resilience leads to upgraded objectives Upgraded mid-term annual organic growth objective to 6.5% (vs. 5% previously) as a result of strength of our Core Business After exceeding 2021 financial objectives, we update 20221 & 20231 objectives and se
Slide 80: Conclusion: our sustainable competitive advantage
Conclusion: our sustainable competitive advantage Best in class technology and quality give best brand High-growth, non-cyclical markets driven by secular mega- protection trends N° 1 or 2 worldwide in most business lines Advancing globalisation but with very few global testing Operating in 54 count
Slide 81: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an
Slide 82: Consolidated Income Statement
Consolidated Income Statement For the year ended 31 December 2021 2021 2020 Separately Separately In € millions Adjusted results1 Reported results Adjusted results1 Reported results disclosed items1 disclosed items1 Revenues 6,717.7 - 6,717.7 5,438.8 - 5,438.8 Operating costs, net -4,816.0 -61.6 -4,
Slide 83: Consolidated Balance Sheet
Consolidated Balance Sheet 31 December 31 December In € millions 31 December 31 December 2021 2020 In € millions 2021 2020 Share capital 1.9 1.9 Treasury Shares -3.6 - Property, plant and equipment 1,829.9 1,574.9 Hybrid capital 1,000.0 1,000.0 Goodwill 4,115.1 3,524.1 Other reserves 1,578.3 1,542.6
Slide 84: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement For the year ended 31 December 2021 In € millions 2021 2020 In € millions 2021 2020 Cash flows from operating activities Cash flows from financing activities Profit before income taxes 1,056.6 694.4 Proceeds from issuance of share capital 35.8 564.8 Depreciation and
Slide 85: Contents
Contents ▪ Executive Summary ▪ Market & Strategic Positioning ▪ Financial review ▪ ESG ▪ Outlook ▪ Summarised Financial Statements ▪ Appendix CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an
Slide 86: Eurofins has vastly outperformed the market since its IPO
Exceptional Business Performance Eurofins has vastly outperformed the market since its IPO (based on share price of €108.8 as of 31 December 2021) 70000% Eurofins: +59,373% (31% 24-year CAGR) CAC 40: +158% (4% 24-year CAGR) 65000% SBF 120: +194% (5% 24-year CAGR) S&P 500: +443% (7% 24-year CAGR) 600
Slide 87: Net Capex to Sales
We have built a hard-to-replicate world-class infrastructure Eurofins has been consistently investing more than its peers (average if more than 1 year) 12% 180% 160% 10% 140% Net Capex to Sales 8% 120% 100% 6% 80% 4% 60% 40% 2% 20% 0% 0% 00-'04 05-'09 2010 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 88: Start-ups expected to break-even in Year 3
Start-ups expected to break-even on Year 3 and typically reach Group’s profitability objectives in the following years Illustration: Example of a typical Eurofins’ start-up Start-ups development: 1) Large investments have short-term dilutive impact on Start-up A Group’s margins and FCF 2) Growth mom
Slide 89: Definitions / Alternative Performance Measures (APMs)
Definitions / Alternative Performance Measures (APMs) Eurofins is providing in the consolidated financial statements certain alternative performance measures (non-IFRS information). APMs used in the Consolidated Income Statement Adjusted results – reflect the ongoing performance of the mature and re
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