Bio-rad Laboratories, Inc. · NYSE:BIO
Bio-rad Laboratories — J.P. Morgan 41st Annual Healthcare Conference 2023
26 slides from Bio-rad Laboratories's conference presentation, Jan 10, 2023
Slide 1: J.P. Morgan Healthcare Conference
JANUARY 10, 2023 J.P. Morgan Healthcare Conference Bio-Rad Laboratories, Inc. 1
Slide 2: Forward-Looking Statements & Use of Non-GAAP Reporting
Forward-Looking Statements & Use of Non-GAAP Reporting Forward-looking Statements. Some statements in this presentation may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding management’s goals
Slide 3: Bio-Rad Today
Bio-Rad Today Global leader of innovative products in life science research and clinical diagnostics 70 $2.9B 8,200 Years Strong Annual Sales* Employees Worldwide Performance Continuous Innovation A History of Contribution Key Competencies Fueling Ongoing Growth Complementary Business Segments Lever
Slide 4: Two Highly Complementary Business Segments
Two Highly Complementary Business Segments Vertically integrated, global commercial platform 47% $2.9B 53% Sales* Life Science Clinical Diagnostics $1.37B* $1.52B 44 *Excludes $32M non-recurring legal settlement; A reconciliation of U.S. GAAP results to non-GAAP results can be found in the Appendix;
Slide 5: Diversified Customer Base & Geographic Profile
Diversified Customer Base & Geographic Profile 70% recurring revenue provides stability and predictability across the business Diversified Customer Base Worldwide Presence Biopharma Hospital Asia-Pacific Labs 15% 25% 34% Clinical Life Diagnostics 21% Science 42% Americas Academic/ Europe, 11% Govt.
Slide 6: Opportunities Across All Product Areas
Opportunities Across All Product Areas 80%+ of sales from products in which Bio-Rad has a leading market position Life Science Clinical Diagnostics Gene Expression Quality Controls Protein Quantitation Immunohematology Bioseparation Infectious Diseases Molecular Biology Diabetes Monitoring Cell Biol
Slide 7: Life Science Group Overview
Life Science Group Overview Established leadership positions with diversified presence and product mix Customer Segments Revenue Geography Products Europe, Middle Consumables East, & Africa Academic & Biopharma Americas Government 30% 48% 43% 32% 42% 52% Instruments Hospital Labs 20% 3% 28% Referenc
Slide 8: Life Science Strategy & Growth Pillars
Life Science Strategy & Growth Pillars Innovations fueling growth in translational research and biopharma Droplet Digital PCR Biopharma Production Cell Biology Broadening adoption Leveraging our advantages Building on a portfolio with new platforms for new therapeutic modalities of differentiated as
Slide 9: Droplet Digital PCR Growth Strategy
GROWTH PILLAR #1 Droplet Digital PCR Growth Strategy Portfolio innovations driving broader adoption QX ONE QX600 QX Continuum Assay portfolio Automation & Throughput Sensitivity & Multiplexing Price & Workflow extensions Launched 2020 Launched 2022 Launching 2023 Ongoing Biopharma production and Set
Slide 10: Biopharma Production Growth Strategy
GROWTH PILLAR #2 Biopharma Production Growth Strategy Boosting productivity for purification of complex molecules • R&D investment focus on innovation – higher yields, fewer purification steps • Fuel demand through applications development • Offer breadth of products for varying scale and customer n
Slide 11: Cell Biology Growth Strategy
GROWTH PILLAR #3 Cell Biology Growth Strategy Innovations positioned to gain share in attractive markets Single Cell Analysis $0.8B Rare Cell Detection $1.6B Drug Discovery & Antibody Screening $1.2B Flow Cytometry Assays $0.6B 11 Sources: Markets & Markets (var.); DeciBio; Grandview Research; Roots
Slide 12: Clinical Diagnostics Group Overview
Clinical Diagnostics Group Overview Global channel with strong recurring revenue Customer Segments Revenue Geography Products Asia-Pacific Instruments Europe, Middle Hospital East & Africa 22% 30% Transfusion 19% Laboratories Laboratories 36% 61% Reference 20% Laboratories 42% Americas 70% Reagents
Slide 13: Clinical Diagnostics Strategy & Growth Pillars
Clinical Diagnostics Strategy & Growth Pillars Extending core franchises and enter molecular diagnostics Core Diagnostics Quality Controls & Informatics Molecular Diagnostics Expand installed base Extend utility of lab QC software Leverage RT-PCR and digital PCR globally and cross-sell menu and driv
Slide 14: Core Diagnostics Growth Strategy Highlights
GROWTH PILLAR #1 Core Diagnostics Growth Strategy Highlights: Clinical Immunology specialty testing is a growing global need BioPlex 2200 Immunoassay Platform • Differentiated platform for complex disease diagnostics serving growing Autoimmune and Infectious Disease testing • Expanding global instal
Slide 15: Quality Controls Growth Strategy Highlights
GROWTH PILLAR #2 Quality Controls Growth Strategy Highlights: A complete offering for laboratory quality control Unity QC Data Management Software • Largest QC data set for peer reporting, 65+ million data points per month, which enables lab quality and productivity • Daily software usage drives pro
Slide 16: Molecular Diagnostics Growth Strategy Highlights
GROWTH PILLAR #3 Molecular Diagnostics Growth Strategy Highlights: A two-pronged approach Syndromic infectious disease molecular diagnostics • Enter high-growth Acute Care Syndromic testing market; $2B+ growing at 8%+ • Leverages Bio-Rad CFX PCR instrument installed base; Expand to new clinical labs
Slide 17: Advancing Our Continued Transformation — A Three Phased Approach
Advancing Our Continued Transformation — A Three Phased Approach Improving financial performance 3 Accelerated 2 Growth 2023 - 2025 Performance • Mix & market segment focus & Operational • Operating margin expansion Improvement • Channel performance 1 2020 - 2023 • • • Increase innovation Leverage o
Slide 18: Enhancing Our Financial Profile Through 2025
Enhancing Our Financial Profile Through 2025 • Accelerating our revenue growth profile • Further improving our cost structure 9% Target (1)(2) Core Revenue CAGR Currency Neutral • Expanding profitability • Creating shareholder value through prudent 28% capital deployment Target Profitability Adjuste
Slide 19: 2022 in Review
2022 in Review Return to normalcy Supply chain issues showing signs of alleviating Continued strong product demand Strengthened operational foundation Addressing inflation Good core growth 19 ‹#› CONFIDENTIAL / DRAFT
Slide 20: Environmental & Social Responsibility Goals
Environmental & Social Responsibility Goals Progress on all fronts 2017 Goals for 2030 46% carbon emission reduction 100% renewable electricity 45% women in U.S. leadership roles 60% of U.S. workforce from under-represented groups 25% reduction of non-recyclable packaging 20
Slide 21: Key Takeaways
Key Takeaways • Accelerating our revenue growth profile • Further improving our cost structure • Expanding profitability • Targeted M&A to enhance growth • Creating shareholder value through disciplined capital deployment 21 ‹#› CONFIDENTIAL / DRAFT
Slide 22: Thank you
Thank you Norman Schwartz Chief Executive Officer 22 CONFIDENTIAL / DRAFT
Slide 23: Appendix
Appendix 23 CONFIDENTIAL / DRAFT
Slide 24: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Year Ended Year Ended Year Ended Year Ended Year Ended December 31, % of December 31, % of December 31, % of December 31, % of December 31, % of 2017 revenue 2018 revenue 2019 revenue 2020 revenue 2021 revenue GAAP net sales $ 2,160,153 $ 2,289,4
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Year Ended Year Ended Year Ended Year Ended Year Ended December 31, % of December 31, % of December 31, % of December 31, % of December 31, % of 2017 revenue 2018 revenue 2019 revenue 2020 revenue 2021 revenue GAAP net sales $ 2,160,153 $ 2,289,4
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Year Ended Year Ended Year Ended Year Ended Year Ended December 31, % of December 31, % of December 31, % of December 31, % of December 31, % of 2017 revenue 2018 revenue 2019 revenue 2020 revenue 2021 revenue GAAP net sales $ 2,160,153 $ 2,289,4
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