bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2015 Earnings Presentation
37 slides from bioMerieux SA's earnings presentation, Aug 31, 2015
Slide 1: 2015 First-Half Results
August 31, 2015 2015 First-Half Results
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: Agenda
1 Overview 2 2015 First-Half Performance 3 2015 First-Half Financial Results 4 2015 Outlook and Conclusion
Slide 4: Overview
1 Overview 2 2015 First-Half Performance 3 2015 First-Half Financial Results 4 2015 Outlook and Conclusion
Slide 5: Favorable long-term business trends in an increasingly uncertain economic context
Favorable long-term business trends in an increasingly uncertain economic context Uncertain current macroeconomic outlook Still difficult economic conditions in some European mature countries Short-term uncertainties in some emerging countries Continued favorable momentum in the U.S. Susta
Slide 6: Solid strategic and operational deployment in H1 2015
Solid strategic and operational deployment in H1 2015 Broad global presence with strengthened positions in North America, the world’s #1 health market Diversified and comprehensive portfolio of solutions, recently enriched with the molecular biology FilmArray® system BioFire solid performance:
Slide 7: 2015 First-Half Performance
1 Overview 2 2015 First-Half Performance 3 2015 First-Half Financial Results 4 2015 Outlook and Conclusion
Slide 8: First-Half 2015 key figures
First-Half 2015 key figures Net Sales Contributive Operating Income* €933 million €122 million + 8.1% organic + 34.3% reported +19.5% reported 13.1% of sales Operating Income Net Income €103 million €59 million + 33.1% reported + 16.9% reported 11.0% of sales 6.3% of sales * Operating income before
Slide 9: First-half 2015 Highlights
First-half 2015 Highlights FDA-approval and CE-marking of FilmArray® 2.0 Molecular FDA de novo submission of FilmArray® Meningitis-Encephalitis panel Biology WHO listing of FilmArray® Biothreat-E for the detection of Ebola virus* Microbiology Restored satisfactory production conditions of Ba
Slide 10: First-half 2015 sales by geography
First-half 2015 sales by geography North America Europe, Middle East & Africa 32% Group’s sales 45% Group’s sales + 21.8% +1.8% Americas Asia-Pacific 39% Group’s sales + 18.9% 16% Group’s sales + 6.6% Latin America Group Sales = €933m 7% Group’s sales + 19.5% reported + 9.3% + 8.1% organic growth Gr
Slide 11: First-half 2015 sales by application
First-half 2015 sales by application Sales Jun 30, 2015 % Change Highlights by application (€m) Like-for-like Molecular Clinical Applications 740 + 8.6% Biology Others* Microbiology 416 + 5.0% ID/AST +8% 12% Immunoassays 210 + 4.7% VIDAS®: + 7.4% Molecular Biology 108 + 48.8% FilmArray® x2 45% Immun
Slide 12: Molecular Biology: FilmArray, an outstanding performance
Molecular Biology: , an outstanding performance Faster diagnosis of causative agent Syndromic approach to Faster access to treatment and avoidance of unnecessary infectious disease testing treatments i.e. antibiotics Shorter stays in healthcare settings 3 panels Respiratory Panel FilmArray®
Slide 13: Clinical microbiology: leading position with the broadest offer on the market
Clinical microbiology: leading position with the broadest offer on the market Incubation Identification API® Galleries WASPLab™ VITEK® MS WASP® VITEK® 2 Sample inoculation Antibiotic Susceptibility Etest ® Testing Blood culture BacT/ALERT® VIRTUO™ Sample reception Sample assessing 13
Slide 14: Immunoassays: VIDAS continuing its successful journey
Immunoassays: VIDAS® continuing its successful journey Installed base = about 29,000 systems High single digit growth A specialized instrument in immunoassays addressing : High medical value marker Emerging markets VIDAS BRAHMS PCT #1 product of the Company With the recent FDA-approval
Slide 15: Industrial applications: a broad portfolio to restore faster commercial momentum
Industrial applications: a broad portfolio to restore faster commercial momentum Food Safety & Food Quality The Pharma Microbiology Pathway Microbiology laboratory Sterility testing QC tools Environment monitoring 15
Slide 16: 2015 First-Half Financial Results
1 Overview 2 2015 First-Half Performance 3 2015 First-Half Financial Results 4 2015 Outlook and Conclusion
Slide 17: Consolidated data (in € millions)
Consolidated data (in € millions) At June 30, 2015 In €m H1 As a % H1 As a % % Change of sales of sales 2015 2014(1) H1 2015 / H1 2014 Net sales 933 100% 781 100% + 19.5% Gross profit 474 50.8% 385 49.3% + 23.0% Contributive operating income 122 13.1% 91 11.6% + 34.3% before non-recurring items (2)
Slide 18: Net sales
Net sales At June 30, 2015 Organic growth Change in scope of consolidation Currency + €63m effect + €8m + 1.0% + 8.1% + €81m o/w 300 bps from €933m FilmArray® $: + €58m €781m Others: + €23m + 19.5% 2014 H1 2015 H1 18
Slide 19: Gross profit
Gross profit At June 30, 2015 Others Organic Change in growth + €17m scope of consolidation Currency + €32m effect* + €5m Sales: + €63m + €35m x 50.8% €474m Better absorption of fixed costs due to 50.8% higher volumes of sales Favorable product mix €385m Reduced quality costs (51.4% LfL**) 49.
Slide 20: Contributive operating income
Contributive operating income* At June 30, 2015 Gross profit SG&A R&D tax 27.3% credits & R&D royalties + €89m - €39m 12.4% received (27.6% H1 2014) - €16m - €3m (12.8% H1 2014) €122m €91m 13.1% 11.6% of sales of sales + 34.3% 2014 H1 2015 H1 * Operating income before non-recurring items, before non
Slide 21: Net Income
Net Income At June 30, 2015 In €m H1 As a % H1 As a % % Change H1 2015 / H1 2014 of sales of sales 2015 2014 (1) Operating income 104 11.1% 76 9.8% + 36.2% before non-recurring items Non-recurring items -1 - 0.1% +1 +0.2% Operating income 103 11.0% 77 9.9% + 33.1% Net financial expense - 13 - 1.4% -
Slide 22: Net financial expense
Net financial expense At June 30, 2015 In €m H1 H1 Change H1 2015 - H1 2014 2015 2014 (1) Cost of net financial debt -12 -2 -10 Interest expense -8 -6 -2 Fair value of hedging instruments -2 6 -8 Others -2 -2 Other financial income and expenses -1 -1 Net financial expense -13 -3 - 10 (1) Restated fo
Slide 23: Tax rate
Tax rate At June 30, 2015 H1 2015 H1 2014 (1) French tax rate 38,0% 38,0% Foreign & -2,4% -4,6% reduced tax rates Research tax credits -4,7% -7,1% Other tax credits -0,7% -0,7% Others (2) 3,9% 5,1% Effective tax rate 34,1% 30,7% (1) Restated following application of IFRIC 21 – new interpretation of
Slide 24: Cash flow statement
Cash flow statement At June 30, 2015 In €m H1 2015 H1 2014 (1) Contributive operating income 122 94 Depreciation and amortization 57 47 EBITDA (2) 179 141 Stock values: +€20m Operating working capital requirement - 62 +1 Payables: -€46m Other cash flow from operation (mainly income tax paid) - 18 -
Slide 25: CAPEX: €160m-180m expected in 2015
CAPEX: €160m-180m expected in 2015 Salt Lake City (UT - U.S.): new building Building for FilmArray® R&D and production, and BioFire Diagnostics administrative team Expected in-service date: second-half 2016 Durham (NC - U.S.): new production line Building & equipment to increase BacT/ALERT
Slide 26: Summarized balance sheet
Summarized balance sheet At June 30, 2015 BioFire: €140m Goodwill Equity (€442m in H1 2014) (€1,273m in H1 2014) €455m Secure financial facilities €300m bond Instruments €66m (€58m in H1 2014) • With institutional investors • October 2013 - October 2020 €1,442m • Annual coupon: 2.875% Other non-cu
Slide 27: 2015 Outlook and Conclusion
1 Overview 2 2015 First-Half Performance 3 2015 First-Half Financial Results 4 2015 Outlook and Conclusion
Slide 28: Drivers for 2015 and beyond
Drivers for 2015 and beyond Re-engineer Deploy the tools and methods our supply chain to optimize sales profitability Profitable and Customer Operational sustainable orientation performance growth Develop our customer / medical / economic added- value orientation Prioritize our portfolio of R&D proj
Slide 29: Production & Quality: still a priority for the Group
Production & Quality: still a priority for the Group In the short term: continue progress on quality improvement commitments Durham (NC, U.S.): production of blood culture reagents • Production conditions improved with all lines operating 24/7 • Quality System action plan on track • Expecting FD
Slide 30: Reaffirmed 2015 objectives
Reaffirmed 2015 objectives Contributive Operating Income Organic sales growth before non recurring items & BioFire purchase price accounting entries 4.5% – 6.5% €240 – €265 million at constant exchange rates at current exchange rates & scope of consolidation Including: Including: BioFire contribut
Slide 31: Reiterated confidence in the effectiveness of our business model
Reiterated confidence in the effectiveness of our business model Solidified fundamentals FilmArray® commercial success demonstrated and BioFire acquisition relevance proved Blood culture improved production allow to regain sales momentum in all the microbiology lines Look to the future with
Slide 32: Appendices
APPENDICES arom Meueux
Slide 33: First-half 2015 sales by geography and quarter
First-half 2015 sales by geography and quarter North America Europe, Middle East & Africa Q1 Q2 H1 Q1 Q2 H1 + 21.0% + 22.6 % + 21.8% Total + 3.9% - 0.3% + 1.8% Europe + 3.3% - 0.9% + 1.2% Metera* + 8.3% + 3.1% + 5.3% Latin America Asia-Pacific Q1 Q2 H1 Q1 Q2 H1 Q1 Q2 H1 + 14.8% + 4.8% + 9.3% + 8.7%
Slide 34: A resilient business model
A resilient business model Installed base at June 30, 2015: 81,200 instruments 1,700 new instruments installed in first-half 2015 Instruments Services 9,6% 8,4% Reagents and Services 90% of sales Up ~8% 82,0% Reagents 34
Slide 35: From contributive operating income to operating income
From contributive operating income to operating income In €m H1 As a % H1 As a % 2015 of sales 2014 (1) of sales Contributive operating income 122 13.1% 91 11.6% before non-recurring items (2) BioFire acquisition-linked costs and amortizations - 18 - 2.0% -15 - 1.9% Operating income 104 11.1% 76 9.8
Slide 36: The benefits of syndromic multiplex testing of infectious diseases
The benefits of syndromic multiplex testing of infectious diseases Many infectious diseases present as a syndrome but can be caused by a variety of pathogens including: viruses, bacteria, fungi, or parasites. Syndrome = symptoms + signs i.e.: “meningitis syndrome” = headache + fever & neck stiffness
Slide 37: Inventing.Health
INVENTING.HEALTH BEYOND:BORDERS PIONEERING DIAGNOSTICS a BIOME|RIEUX