bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2009 Earnings Presentation
34 slides from bioMerieux SA's earnings presentation, Sep 7, 2009
Slide 1: First-Half 2009 Financial Results
First-Half 2009 Financial Results September 7, 2009
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 First-Half Performance Financial Results New R&D Projects 2009 Objectives Questions and Answers
Slide 4: A good first-half 2009
A good first-half 2009 ` Growth in sales ^ Up 6.0% like-for-like ^ Up 10.3% including recent business development agreements ` Growth in operating income before non-recurring items ^ Up 16% vs. June 30, 2008 @ 16.5% of sales vs. 15.9% as of June 30,2008 Results in line with objectives Demonstrating
Slide 5: Sustained growth in first-half 2009
Sustained growth in first-half 2009 North America: + 5.7% EMEA **: + 3.7% + 5.6% - excl. France 57% 24% €590m + 6.0%* - Organic 12% + 10.3%* - Incl. bus. Dev. 7% Latin America: + 17.7% Asia-Pacific: + 12.9% * Growth rates are at constant exchange rates ** EMEA: Europe, Middle East and Africa 4
Slide 6: Sales by technology
Sales by technology Microbiology First-half 2009 % Change* 50% Other €9m Clinical applications €500m + 6.0% Molecular ^ Microbiology €296m + 4.6% biology 6% ^ Immunoassays €160m + 4.1% ^ Molecular biology €35m + 33.4% 15% Industry Industrial applications €90m + 6.1% 27% TOTAL €590m + 6.0% Immunoassa
Slide 7: Installed base
Installed base Installed base – number of instruments Analysis of first-half sales 54,500 53,100 Instruments 10.3% 9.0% Services and 4.9% 5.1% 49,200 other 45,400 41,500 Reagents and Services Reagents 84.8% 85.9% + 7%* approx. 2005 2006 2007 2008 June 30, First-half First-half 2009 2008 2009 ` Net i
Slide 8: New product launches
New product launches 8 new launches, including: ` VIDAS® EBV Detection of Epstein-Barr virus, which causes 80% of cases of infectious mononucleosis ^ Proprietary technology 3 markers: search for antibodies and determine stage of infection ^ Automated, CE-marked test - Fast results: 40 minutes ` Nucl
Slide 9: Other first-half highlights
Other first-half highlights ` Influenza A (H1N1) ^ Quidel QuickVue® Influenza A+B rapid test: clinical evaluation underway for H1N1 ^ easyMAG® extraction reagents: inventory build-up ^ EasyQ® Influenza A/B molecular test: addition of the new H1N1 sequence ^ Culture media production: vaccine manufact
Slide 10: Overview
Overview First-Half Performance Financial Results New R&D Projects 2009 Objectives Questions and Answers
Slide 11: Consolidated income statement
Consolidated income statement In € millions H1 2009 H1 2008 % Change Net sales 590 528 + 11.6%* Operating income 97 84 +16.0% before non-recurring items As a % of sales 16.5% 15.9% Operating income 93 85 +9.2% As a % of sales 15.7% 16.0% Net income 63 56 +12.2% As a % of sales 10.7% 10.7% 10 * Up 6%
Slide 12: Net sales
Net sales Business development + €23m Organic + 4.3% growth + €32m + 6% Currency effect 590m € + €7m 528m € + €62m H1 2008 + 11.6% H1 2009 11
Slide 13: Net sales
Net sales Business development + €23m Organic + 4.3% growth ` ABB + €32m ` PML + 6% ` Quidel Currency effect 590m € + €7m ` Rise of US dollar 528m € ` Other currencies H1 2008 + 10.3% H1 2009 12
Slide 14: Gross profit
Gross profit Other Gross profit Business development + €4m + €10m Organic growth + €17m €317m Gross profit 53.7% of sales €286m 54.2% of sales + €30.2m + 10.5% H1 2008 H1 2009 13
Slide 15: Gross profit
Gross profit Other Gross profit Business development + €4m + €10m Organic growth ª Higher selling prices ª Lower raw material and transportation costs ` ABB ª Lower instrument sales ` PML ª Economies of scale and + €17m ` Quidel productivity gains – Increased royalty €317m payments Gross profit 53.7
Slide 16: Operating income before non-recurring items
Operating income before non-recurring items Gross profit SG&A Operating R&D income Business dev. Royalty - €16.5m payments before non-recurring + €0.7m - €0.9m items Operating + €30.2m income before non-recurring items €97.5m € 84m 16.5% of sales 15.9% of sales + €13.5m + 16% H1 2008 H1 2009 15
Slide 17: Operating income before non-recurring items
Operating income before non-recurring items Gross profit SG&A Operating R&D income Business dev. Royalty - €16.5m payments before non-recurring + €0.7m - €0.9m items Operating + €30.2m income before 27% of sales 11.1% of sales non-recurring (27% H1 2008) (12.6% H1 2008) ` Decline in BD items royalty
Slide 18: Net income
Net income Operating Other income before non-recurring non-recurring income and items expense Net financial expense - €5.7m Income + €1.1m tax - €2m Net income + €13.5m Net income €63.4m €56.5m 10.7% of sales 10.7% of sales + €6.9m + 12.2% H1 2008 H1 2009 17
Slide 19: Net income
Net income Operating Other income before non-recurring non-recurring income and items expense Net financial expense - €5.7m Income + €1.1m tax - €2m Net income + €13.5m Site closures: Average income Net income ` Boxtel: €3.8m tax rate ` Solna: €1.0m ` Toronto: €0.7m H1 2009: 30.1% H1 2008: 31% €63.4
Slide 20: Cash flow statement
Cash flow statement In € millions H1 2009 H1 2008 Change EBITDA (1) 133 119 + 14 Provisions and other 7 2 +5 Cash flow before tax and interest expense 140 121 + 19 Income tax and financial expense (29) (17) - 12 Operating working capital requirement (34) (24) - 10 Capital expenditure (2) (57) (43) -
Slide 21: Sharp increase in capital expenditure
Sharp increase in capital expenditure H1 2009 H1 2008 €20m Instruments * €18m Capex expected to increase by €30m per year in 2009 and 2010 ` Transfer of operations related Other capital €30m to the Boxtel closure expenditure * €18m ` Global ERP ` Capacity needs Total* €36m €50m % of sales 6.8% 8.5%
Slide 22: Summarized balance sheet
Summarized balance sheet Assets Liabilities Goodwill €167m Instruments €69m Equity €722m Other non- €390m current assets Operating WCR: 22.3% WCR €151m vs. 23.3% H1 2008 €55m Net debt 21
Slide 23: Overview
Overview First-Half Performance Financial Results New R&D Projects 2009 Objectives Questions and Answers
Slide 24: Microbiology: bioMérieux's core business
Microbiology: bioMérieux’s core business ` bioMérieux: the industry leader ^ A complete line of manual and automated products ^ Recognized expertise across the value chain ` Genuine growth momentum ^ 3 acquisitions since 2007: Biomedics, AB BIODISK, PML Microbiologicals ^ Sharp increase in market sh
Slide 25: Microbiology: new products and projects
Microbiology: new products and projects ` Full Microbiology Lab Automation - FMLATM ^ Deployment scheduled over several years ^ 2008: • Concept introduced • Strategic agreement signed with Hitachi High-Technologies Corp. • 2 new instruments launched: PREVITM Isola and PREVITM Color Gram ^ 2009: • PR
Slide 26: Microbiology: new products and projects
Microbiology: new products and projects A new approach to IT architecture ` "One digital world" strategy ^ 2009: launch of VILINKTM Gradual implementation of remote microbiology systems maintenance ^ 2010: VITEK® 2 v5.01 Remote software updating ` FMLATM IT: IT solution to optimize microbiology lab
Slide 27: Microbiology: real strengths in a changing environment
Microbiology: real strengths in a changing environment Opportunities ` Unmet medical needs ^ Need for faster, standardized results ^ Fight against Healthcare-Associated Infections ` Growing lack of skilled employees ` New technologies ` Consolidation of microbiology laboratories Challenges ` New tec
Slide 28: The VIDAS franchise: a major asset
The VIDAS® franchise: a major asset ` bioMérieux - VIDAS®: a proven niche position ` The world’s 2nd largest installed base, with more than 23,000 VIDAS® and mini VIDAS® systems ^ Low through-put instrument: up to 50 tests per hour ^ Reliable: MTBF* for VIDAS® = 660 days; for mini VIDAS® = 1,150 day
Slide 29: VIDAS: new products and projects
VIDAS®: new products and projects ` Three-pronged strategy to increase VIDAS® business Introduce new parameters R&D expenditure up by more than 30% since 2007 Launch a new instrument Reduce production costs VIDAS® (NEW) ^ Perfecting the VIDAS® system • Automatic pipetting • Use of primary tubes • St
Slide 30: Medium to long-term strength of the VIDAS franchise
Medium to long-term strength of the VIDAS® franchise Opportunities ` Explosion of medical knowledge and discovery of innovative biomarkers ` Emerging markets ^ Rapidly increasing medical needs ^ VIDAS®, just the right instrument ` Capturing the value of innovation D Higher prices for high medical va
Slide 31: Overview
Overview First-Half Performance Financial Results New R&D Projects 2009 Objectives Questions and Answers
Slide 32: 2009 Objectives
2009 Objectives ` Sales growth objectives confirmed ^ 5% to 7% Like-for-like ^ 7% to 9% At constant exchange rates After the impact of business development agreements ` Higher full-year target for operating margin before non-recurring items ^ About 17% ` 2012 strategic plan objectives reaffirmed 31
Slide 33: Conclusion
Conclusion ` Good first-half 2009 performance, in a difficult environment ^ Growth in sales ^ Growth in operating margin before non-recurring items ` An accelerating transformation process ^ Hiring new talent ^ Investing and innovating to meet patient needs ^ Strengthening global presence, particula
Slide 34: Overview
Overview First-Half Performance Financial Results New R&D Projects 2009 Objectives Questions and Answers