bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2010 Earnings Presentation
50 slides from bioMerieux SA's earnings presentation, Mar 9, 2011
Slide 1: 2010 Financial Results
2010 Financial Results Paris - March 9, 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 2010 Performance 2010 Financial Results 2011 New Products and R&D Pipeline Objectives and Conclusion
Slide 4: 2010: A foundational year
2010: A foundational year Robust operational performance Key strategic initiatives 3
Slide 5: 2010: A foundational year
2010: A foundational year Robust operational performance Sales €1,357m + 6.4%* excluding H1N1 impact * Growth in sales at constant exchange rates and scope of consolidation without H1N1 impact 4
Slide 6: Steady organic sales growth
Steady organic sales growth* + 7.4% + 7.5% + 6.2% + 6.4% + 5.9% + 5.7% + 5.2% 2004 2005 2006 2007 2008 2009 2010 Historic trend Acceleration, despite 5 to 6% the economic crisis Geographic and technological diversity driving sustained performance * Growth in sales at constant exchange rates and scop
Slide 7: Strong geographic mix
Strong geographic mix North America: + 3.5%* EMEA**: + 1.8%* Slight decrease in Western Europe 54% 23% €1,357m 15% + 4.9%* - Organic + 6.4% - w/o H1N1 impact 8% Latin America: + 10.2%* Asia-Pacific: + 18.9%* w/o H1N1 impact: + 20% w/o H1N1 impact: + 22% * Growth rates are like-for-like ** EMEA: Euro
Slide 8: Dynamic growth drivers
Dynamic growth drivers Microbiology 2010 % Change 51% Other Clinical Applications €1,142m + 4.3% €17m Molecular Microbiology €694m + 7.6% Biology 5% Immunoassays €361m + 3.2% * Molecular Biology €70m - 13.1% Industry 16% Industrial Applications €215m + 8.1% 27% TOTAL €1,357m + 4.9% Immunoassays * In
Slide 9: The market leader in clinical microbiology
The market leader in clinical microbiology ∼ 41% Estimated market shares* 40% ∼ 26% 30% ∼ 13% 20% ∼ 10% ∼ 10% 10% 2006 2010 2006 2010 2006 2010 2006 2010 2006 2010 Becton Thermo-Fisher Siemens Other Dickinson 2010 organic growth in clinical microbiology estimated* to be 2 x that of the market * bioM
Slide 10: Installed base
Installed base Installed base - number of instruments Analysis of 2010 sales 59,900 55,700 Instruments 10.4% 11.8% 53,100 Services 5.0% 5.2% 49,200 and Other 45,400 Reagents and Reagents 84.6% 83.0% Services Growing at + 4.6%* 2006 2007 2008 2009 2010 2009 2010 2010: The most 2010: Strong instrument
Slide 11: 2010: A foundational year
2010: A foundational year Robust operational performance Sales €1,357m + 6.4%* excluding H1N1 impact Operating income before R&D tax credits & non-recurring items €241m + 13.0% / 17.8% of sales * Growth in sales at constant exchange rates and scope of consolidation without H1N1 impact 10
Slide 12: 2010: A foundational year
2010: A foundational year Robust operational performance Sales €1,357m + 6.4%* excluding H1N1 impact Operating income before R&D tax credits & non-recurring items €241m + 13.0% / 17.8% of sales 17 new product launches * Growth in sales at constant exchange rates and scope of consolidation without H1
Slide 13: Myla: Microbiology laboratory transformation
MylaTM Microbiology laboratory transformation Context: time-to-therapy too long Results take too long to reach the clinician, who has to treat his/her patient as quickly and as effectively as possible MylaTM, an innovative software developed using web 2.0 tool Information management: real-time conso
Slide 14: Myla at work
MylaTM at work MylaTM provides information management services and makes all relevant information available when and where needed 13
Slide 15: 2010: A foundational year
2010: A foundational year Robust operational performance Sales €1,357m + 6.4%* excluding H1N1 impact Operating income before R&D tax credits & non-recurring items €241m + 13.0% / 17.8% of sales 17 new product launches Strengthened bioindustrial organization * Growth in sales at constant exchange rat
Slide 16: Strengthened bioindustrial organization
Strengthened bioindustrial organization Optimization of manufacturing site organization New production capabilities in China 3 facilities closed and another announced for 2011 (U.S.) Strong support for robust instrument sales, especially in Q4 2010 Instrument production increased by ~ 50% vs. 2009 “
Slide 17: 2010: A foundational year
2010: A foundational year Robust operational performance Sales €1,357m + 6.4%* excluding H1N1 impact Operating income before R&D tax credits & non-recurring items €241m + 13.0% / 17.8% of sales 17 new product launches Strengthened bioindustrial organization Continued “green” performance * Growth in
Slide 18: bioMérieux Goes Green
bioMérieux Goes Green A positive impact on the environment Energy as compared with sales (MWh/€m) - 12% for 2008 - 2010* Water as compared with sales (m3/€m) - 29% for 2008 - 2010* Many initiatives to improve internal processes Waste-to-energy & recycled waste > 50%* Tools to foster a paper-free wor
Slide 19: 2010: A foundational year - Key strategic initiatives
2010: A foundational year Robust operational performance Sales €1,357m + 6.4%* excluding H1N1 impact Operating income before R&D tax credits & non-recurring items €241m + 13.0% / 17.8% of sales 17 new product launches Strengthened bioindustrial organization Continued “green” performance Key strategi
Slide 20: A Chinese company in China
A Chinese company in China Acquisition of bioMérieux Shanghai Biotech Access to R&D / manufacturing capabilities and to a POC* manual product range Ideally complementing bioMérieux’s product offering, mainly for infectious diseases Additional immunoassay R&D capabilities for new rapid tests A strate
Slide 21: A rapid start in mass spectrometry
A rapid start in mass spectrometry MALDI-TOF* mass spectrometry (MS) 1. Source 2. Analyzer 3. Detector Extract the ions Separate the from the sample ions Detect the ions by m/z Matrix Assisted Desorption Time-of-Flight /Ionization Analysis MALDI TOF Mass spectrometer Database Partnership with Partne
Slide 22: A significant step in hospital Point-of-Care
A significant step in hospital Point-of-Care bioMérieux and Philips: POCT* for hospital acute patient testing Leveraging bioMérieux’s VIDAS® biology expertise and Philips’ engineering capabilities Lab-equivalent assay analytical performance Access to Philips’ Magnotech biosensor platform for multi-a
Slide 23: Fully integrated molecular diagnostic testing
Fully integrated molecular diagnostic testing Sample Cell DNA DNA Sample-in liquefaction lysis extraction amplification Result-out & detection Access to Biocartis’ molecular biology platform Tests on any sample, including tissue Fully integrated platform: from “sample-in to result-out” Highly comple
Slide 24: Anticipating the sequencing revolution
bioMérieux and : Anticipating the sequencing revolution Sequencing, a potential future technology for clinical diagnostics General drop in DNA sequencing costs Rise in human/pathogen genome knowledge kGAP* rapidly approaching fully automated whole-genome analysis 1 400 kGAP 0.5 release 1 200 1,280 F
Slide 25: Cardiovascular disease: A major public health issue
Cardiovascular disease A major public health issue Acute coronary syndromes (ACS) First cause of death worldwide Leading cause of disease burden in high-income countries Total annual cost of $215 billion in Europe and the U.S. Heart failure (HF) 1 out of 3 individuals aged 55 will develop HF during
Slide 26: Galectin-3: A new era in the understanding of heart failure
Galectin-3 A new era in the understanding of heart failure Heart failure (HF) is a progressive disorder Remodeling is the principal underlying disease process responsible for progression Remodeling is galectin-3 dependent Blockage of galectin-3 inhibits remodeling IVD test: quantitative measurement
Slide 27: hsCRP: A new tool in cardiovascular disease risk assessment
hsCRP: A new tool in cardiovascular disease risk assessment Atherosclerosis A process of plaque buildup in the walls of arteries Puts patients at risk for future heart attacks and stroke Associated with a chronic inflammatory response CRP (C-Reactive Protein) A marker that rapidly increases upon acu
Slide 28: 2nd collaboration with GlaxoSmithKline
2nd collaboration with GlaxoSmithKline Skin cancer or melanoma In the U.S.*: 68,000 cases of melanoma each year - about 15% are metastatic In Europe**: 59,000 cases of melanoma each year - anywhere from 10-70% are metastatic Development of a novel theranostic test Aid for oncologists in choosing the
Slide 29: Overview
Overview 2010 Performance 2010 Financial Results 2011 New Products and R&D Pipeline Objectives and Conclusion
Slide 30: Consolidated income statement
Consolidated income statement In € millions 2010 2009 % Change Net sales 1,357 1,223 + 10.9%* Operating income + 13.0% before non-recurring items 241 213 As a % of sales 17.8% 17.4% Operating income 231 204 + 13.6% As a % of sales 17.0% 16.7% Net income 160 148 + 8.0% As a % of sales 11.8% 12.1% His
Slide 31: Net sales
Net sales Net sales Business development Organic growth + €11m + €60m Meikang Biotech Currency Dima effect €1,357m Net sales + €63m + 4.9% + 0.9% + 5.8% €1,223m Rise of all currencies + €134m 2009 + 10.9% 2010 30
Slide 32: Net sales
Net sales Business Net sales development Organic growth + €11m + €78m Meikang Biotech Currency H1N1 Dima effect impact - €18m + €63m + 6.4% + 0.9% €1,357m Net sales - 1.5% + 5.8% €1,223m Rise of all currencies + €134m 2009 + 10.9% 2010 31
Slide 33: Gross profit
Gross profit Other Gross profit Business development + €27m Organic growth + €3 m Currency impact Meikang Biotech €722m + €32m Reduced COG Dima Gross profit Product mix Scale effect 53.2% of sales €660m Sales: + €60m x 53.9% 53.9% of sales + €62.5m 2009 + 9.5% 2010 32
Slide 34: Operating income before non-recurring items
Operating income before non-recurring items Gross profit SG&A R&D Operating Business dev. Royalties income before received non-recurring Operating - €26.2m - €6.2m items - €2.4m income before + €62.5m non-recurring 25.2% of sales (25.8% 2009) 11% of sales items (11.7% 2009) BD, BOOM®, NASBATM: €5m L
Slide 35: Net income
Net income Operating income Other Net financial before non-recurring non-recurring expense items income and expenses Income tax - €1.5m Net income - €14.4m 2010 + €27.7m Greek AR €4.4m Net income Portland €3.9m Boxtel €1.8m R&D tax credits 2010 & 2009: ∼ €13m 2009 Boxtel €8.2m Average income tax rat
Slide 36: Earnings per share
Earnings per share €4.03 Recommended dividend €3.75 €3.29 €0.98 / share (€38.7m) 2008 2009 2010 35
Slide 37: Consolidated income statement - New presentation
Consolidated income statement New presentation In € millions 2010 2009 % Change Operating income + 13.0% before non-recurring items 241 213 As a % of sales 17.8% 17.4% R&D tax credits 13 13 As a % of sales 0.9% 1.1% Operating income before non-recurring items 254 226 + 12.2% As a % of sales 18.7% 18
Slide 38: Cash flow statement
Cash flow statement In € millions 2010 2009 Change EBITDA (1) 334 299 + 35 Income tax and financial expense (78) (73) -5 Operating working capital requirement (42) (25) - 17 Capital expenditure (2) (123) (120) -3 Other (11) 6 -17 Free cash flow 80 87 -7 Acquisition of shares (3) (25) - 25 Dividends
Slide 39: Capital expenditure
Capital expenditure 2009 2010 €38m €36m 2008 2007 €37m Instruments €40m 2011: Capex expected to increase by €15m €83m €86m over ∼ 8.5% standard Other capital €51m €57m expenditure Total €91m €94m €121m €122m % of sales 8.6% 8.4% 9.9% 9.0% Change in PPE payables - € 1m - € 2m - € 1m + €1m Cash outlay
Slide 40: Summarized balance sheet
Summarized balance sheet Assets Liabilities Goodwill (€167m) €189m Instruments €68m (€68m) Other non-current assets €474m €976m Equity (€401m) (€806m) Operating WCR: 22.4%* WCR vs. 20.8%* 2009 (€172m) €221m Net cash: €24m (Net debt €2m) * Before R&D tax credit reclassification 39
Slide 41: Overview
Overview 2010 Performance 2010 Financial Results 2011 New Products and R&D Pipeline Objectives and Conclusion
Slide 42: R&D: A strong pipeline of systems under development
R&D: A strong pipeline of systems under development Smart Incubator System New blood culture system Philips POCT* device New systems under Biocartis molecular diagnostics system development VIDAS® New VITEK® MS BacT/ALERT® New Media New rapid tests manufactured in China Continuous development Molecu
Slide 43: bioNexia, a manual POC range
bioNexia®, a manual POC* range bioNexia®, rapid diagnostics offer Lateral flow immunoassays Efficient product design process • Robust performance • High user convenience Manufactured in China (bioMérieux Shanghai Biotech site) at an attractive cost bioNexia® menu, fully dedicated to professional POC
Slide 44: VITEK MS: A CE-marked, integrated solution
VITEK® MS: A CE-marked, integrated solution European commercial launch in Q1 2011 FDA submission in H2 2011 Workflow integration via MylaTM Bacteria identification Antibiotic Mass spectrometer susceptibility testing VITEK® MS VITEK® A complete solution provided by the leader in microbiology 43
Slide 45: BacT/ALERT New Media
BacT/ALERT® New Media, for one of the most important microbiological tests BacT/ALERT® New Media Recovery of microorganisms from blood and sterile body fluids Offered in both aerobic and anaerobic formats Synthetic resin beads to replace activated carbon suspension Fully compatible with the BacT/ALE
Slide 46: A new service offer to address current key market drivers
A new service offer to address current key market drivers A first wave of services Training To improve lab technicians’ skills, knowledge and motivation In a context of high turnover and loss of skilled technicians Accreditation Workflow optimization To comply with requirements To improve lab perfor
Slide 47: Overview
Overview 2010 Performance 2010 Financial Results 2011 New Products and R&D Pipeline Objectives and Conclusion
Slide 48: 2015 Objectives
2015 Objectives 2010-2015 CAGR sales growth objective 7% to 9% At constant exchange rates Including business development 2015 operating margin* objective 18% - 20% With R&D expenditure at about 12% of sales * Before R&D tax credits and non-recurring items - At 2009 exchange rates 47
Slide 49: 2011 Objectives
2011 Objectives 2011 sales growth objective 5% to 6% At constant exchange rates and comparable business base (excl. business being discontinued) 2011 operating income* objective €255m to €270m Taking into account new service activity preparation of 2012 & 2013 launches increased R&D expenditure expe
Slide 50: Conclusion
Conclusion More than ever, a solid Company… Highly diversified geographic mix Dynamic growth drivers Robust R&D pipeline Continuous transformation process Main shareholders are entrepreneurs committed to innovation …on the move Driving advances in diagnostics to address unmet medical needs Transform