bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2016 Earnings Presentation
36 slides from bioMerieux SA's earnings presentation, Mar 1, 2017
Slide 1: 2016 Annual Results & 2017 Outlook
March 1st, 2017 2016 Annual Results & 2017 Outlook
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 markets addressed by bioMérieux. Furthe
Slide 3: Agenda
1 Overview 2 2016 Business Review 3 2016 Financial Results 4 2017 Outlook & Conclusion
Slide 4: bioMérieux: 2016 facts & figures
bioMérieux: 2016 facts & figures + 50 YEARS 2 LEADERSHIP OF EXPERTISE IN POSITIONS IN IN VITRO DIAGNOSTICS + 20 YEARS OF EXPERTISE IN INDUSTRIAL MICROBIOLOGY MICROBIOLOGY CONTROL GENERATE 2/3 OF SALES Sales amounting to A large installed base of 1,500 people €2.1 billion dedicated to R&D 86,900 inst
Slide 5: bioMérieux at a glance
bioMérieux at a glance CLINICAL APPLICATIONS PIONEERING INDUSTRIAL APPLICATIONS 80% of revenues DIAGNOSTICS 20% of revenues to improve public health, especially in the fight against infectious diseases MICROBIOLOGY MOLECULAR BIOLOGY IMMUNOASSAYS To sustainably be the To own the fast growing To be a
Slide 6: Solutions to manage infectious diseases and improve patient care
bioMérieux provides solutions to manage infectious diseases and improve patient care DEVELOP SYNDROMIC DIAGNOSIS FOR INFECTIOUS DISEASES MANAGE EMERGENCY CONDITIONS DETECT AND CURB ANTIMICROBIAL RESISTANCE PROTECT CONSUMERS’ HEALTH FIGHT AGAINST SEPSIS 7
Slide 7: 2016 Business Review
1 Overview 2 2016 Business Review 3 2016 Financial Results 4 2017 Outlook & Conclusion
Slide 8: FY 2016 key figures
FY 2016 key figures Net Sales Contributive Operating Income* €2,103 million €298 million + 7.1% reported + 14.5% reported + 9.6% organic 14.2% of sales Net Income Leverage 0.6 Gearing 17% €179 million + 62.4% reported 8.5% of sales * Operating income before non-recurring items, before non-recurring
Slide 9: FY 2016 sales by geography
FY 2016 sales by geography: strong sales dynamic at 9.6% organic growth North America Europe, Middle East & Africa +20.6% +2.7% [41% Group’s sales] [35% Group’s sales] Americas Asia-Pacific +19.0% +6.3% [42% Group’s sales] [17% Group’s sales] Latin America Group Sales = €2,103m +12.2% +7.1% reported
Slide 10: FY 2016 sales by application
FY 2016 sales by application: growth supported by all product lines Sales Dec31, 2016 % Change Highlights by application (€m) Like-for-like Others* Clinical Applications 1,678 +9.9% Industrial Microbiology 897 +4.0% BacT/ALERT®: +10% applications Immunoassays 452 +5.8% VIDAS®: +8% 18% Molecular Biol
Slide 11: FY 2016 highlights
FY 2016 highlights FDA clearance and CE-marking of FilmArray® Torch Molecular FDA clearance and CLIA-waiver for FilmArray® RP EZ Biology Launch of eMAG®, next generation instrument for DNA/RNA extraction CE-marking and FDA filing of BacT/ALERT® VIRTUO™ new release Microbiology VITEK® MS ex
Slide 12: FilmArray: a year of strategic progress
FilmArray®: a year of strategic progress confirming the long term potential of the range 4,000 Grow the installed base and its +1,500 units in 2016 consumption Total Installed Base 600 IB = 4,000 units 2013 2016 Enrich the FilmArray® menu €250m 2016 revenues Penetrate international markets of €2
Slide 13: FilmArray: a year of strategic progress
FilmArray®: a year of strategic progress confirming the long term potential of the range Grow the installed base and its Rapid progression of the recently consumption launched GI and ME panels Most of our customers use more Enrich the FilmArray® menu than 1 panel FilmArray® RP-EZ FDA-cleared and C
Slide 14: Major capacity projects nearly and/or fully completed
FY 2016 highlights: 3 major capacity projects nearly and/or fully completed Salt Lake City (UT - USA): Durham (NC - USA): production of FilmArray® production of BacT/ALERT® bottles Marcy l’Etoile (France): site expansion and packaging of VIDAS® 15
Slide 15: 2016 Financial Results
1 Overview 2 2016 Business Review 3 2016 Financial Results 4 2017 Outlook & Conclusion
Slide 16: Consolidated P&L as of December 31, 2016
Consolidated P&L as of December 31, 2016 In €m 2016 As a % 2015 As a % % Change of sales of sales 2016 / 2015 Net sales 2,103 100% 1,965 100% + 7.1% Gross profit 1,101 52.3% 989 50.3% + 11.3% Contributive operating income (1) 298 14.2% 260 13.2% + 14.5% Operating income 282 13.4% 195 9.9% + 44.9% Ne
Slide 17: Net sales as of December 31, 2016
Net sales as of December 31, 2016 Currency Change in scope Organic effect of consolidation growth + €186m - €33m - €14m + 9.6% €2,103m USD+JPY: +€7m €1,965m LatAm: - €17m o/w ~500 bps CNY+GBP: - €14m from FilmArray® + 7.1% 2015 2016 18
Slide 18: Gross profit as of December 31, 2016
Gross profit as of December 31, 2016 Others Organic Change in growth + €48m scope of Currency consolidation effect* + €94m - €23m - €7m Sales: + €186m €1,101m x 50.3% Product mix €989m Medical Device Tax moratorium Stabilized quality costs 50.3% 52.3% of sales of sales + 11.4% 2015 + 14.8% 201
Slide 19: Contributive operating income as of December 31, 2016
Contributive operating income* as of December 31, 2016 Gross profit SG&A R&D tax credits, grants - €40m R&D & royalties + €112m 27.1% - €33m received in 2016 (vs. 26.9% 12.9% - €1m in 2015) in 2016 (vs. 12.2% in 2015) o/w perimeter var. = + €21m €298m €260m FOREX = - €3m 13.2% 14.2% of sales of sale
Slide 20: Net Income as of December 31, 2016
Net Income as of December 31, 2016 In €m 2016 As a % 2015 As a % % Change 2016 / 2015 of sales of sales Contributive operating income 298 14.2% 260 13.2% + 14.5% BioFire acquisition related costs - 25 - 32 Non-recurring items + 10 - 33 Operating income 282 13.4% 195 9.9% + 44.9% Net financial expens
Slide 21: Tax rate as of December 31, 2016
Tax rate as of December 31, 2016 2016 2015 French tax rate (1) 34,4% 38,0% Foreign & -3,3% -7,0% reduced tax rates Tax credits -4,2% -6,5% Others (2) 1,1% 1,4% Recurring effective 28,0% 25,9% tax rate Non-taxable result -1,3% 6,6% from bioTheranostics Non-reccurring items (3) 4,2% 4,9% Effective tax
Slide 22: Cash flow statement as of December 31, 2016
Cash flow statement as of December 31, 2016 In €m 2016 2015 Contributive operating income 298 260 Inventory: - €1m Depreciation and amortization 143 120 Payables: + €14m EBITDA (1) 441 380 Receivables: - €26m Operating working capital requirement - 33 - 37 Others: + €17m Other cash flow from operati
Slide 23: Summarized balance sheet as of December 31, 2016
Summarized balance sheet as of December 31, 2016 Equity Goodwill (€1,503m in 2015) (€459m in 2015) €471m Available financing facilities Instruments €97m €300m bond (€74m in 2015) ISIN: FR0011592096 October 2013 - October 2020 €1,621m Annual coupon: 2.875% €500m syndicated facility** Other
Slide 24: 2017 Outlook & Conclusion
1 Overview 2 2016 Business Review 3 2016 Financial Results 4 2017 Outlook & Conclusion
Slide 25: 2017 Outlook
2017 Outlook Pursue commercial dynamics Sales organic growth bioMérieux well positioned to address public health concerns 8 to 9% Maintained regional dynamics at constant exchange rates & scope of consolidation Promotion and internationalization of FilmArray® Industry to continue high single
Slide 26: Well positioned to address public health needs
bioMérieux is well positioned to address public health needs for the management of infectious diseases Recognition of IVD value to answer growing public health concerns Balanced international Healthy growth of all footprint strategic lines On-going initiatives Sustained commitment aiming at operatio
Slide 27: Ordinary shares and ADR information
Ordinary shares (EUR) ISIN: FR0010096479 Reuters: BIOX.PA / Bloomberg: BIM.FP American Depository Receipt (1:0.1 USD) Reuters: BMXXY.PK / Bloomberg: BMXXY.US 28
Slide 28: Benefits of syndromic multiplex testing
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 29: A full set of solutions to address Sepsis
Creating medical value: a full set of solutions to address Sepsis Every A medical & Sepsis strikes about Annual sepsis cost economic 30 million 3-4 sec $24b someone in the world dies burden people per year worldwide of sepsis (US) Etest® Workflow optimization VITEK® 2 Sepsis Result Specimen collecti
Slide 30: Antimicrobial resistance, a global healthcare challenge
Antimicrobial resistance, a recognized global healthcare challenge Facts & 2/3rd of 50,000 Annual antibiotic resistance cost (US) 2 inappropriate antibiotic deaths / year due to Figures use in respiratory diseases (US) 1 resistant infections (EU & US alone) 1 $20b VIDAS® B•R•A•H•M•S PCT™ expanded
Slide 31: VITEK 2: a cornerstone in the Microbiology Lab workflow
VITEK® 2: a cornerstone in the Microbiology Lab workflow wide range of clinical specimen: ID/AST isolates urine, respiratory, blood, genital, stools, All routine processed with cerebrospinal fluids, etc. clinical ID/AST VITEK® isolates broad spectrum of pathogens and antibiotics available: ID of > 4
Slide 32: Multiyear initiatives to drive profitable and sustainable growth
Move forward multiyear initiatives to drive profitable and sustainable growth Supply chain re-engineer leading to improved KPIs Global Commercial in terms of service and Performance Initiative inventory New CRM tool deployed in 28 countries Profitable and Customer Operational sustainable orientation
Slide 33: Evolution of CAPEX
Evolution of CAPEX: return to normalized levels in 2017 2011 2012 2013 2014 2016 2017e €58m €44m €31m Instruments €33m €30m 9-10% €154m €132m of €103m sales Other capital €68m €77m expenditure Intangible capital expenditure €30m €20m €32m €25m €23m TOTAL €131m €127m €166m €201m €236m In % of sales 8
Slide 34: Clinical Applications: Microbiology
Clinical Applications Microbiology Culture Identification Antibiotic Susceptibility Testing Culture Media API® Galleries Rapidec® Carba NP ChromID® Etest® WASPLab™ VITEK® MS VITEK® 2 (MALDI-TOF) WASP® BacT/ALERT® 3D VITEK® ID cards VITEK® 2 Compact VITEK® AST cards BacT/ALERT® VIRTUO™ To know more a
Slide 35: Clinical Applications: Immunoassays and Molecular Biology
Clinical Applications Immunoassays and Molecular Biology Immunoassays Molecular Biology miniVIDAS® easyMAG® and eMAG® VIDAS® 3 eSTREAM™ VIDAS® FilmArray® VIDAS® reagents reagents FilmArray® 2.0 bioNexia™ and VIKIA® rapid tests FilmArray® Torch To know more about the whole bioMérieux offer in clinica
Slide 36: Industrial Applications
Industrial Applications Food Pharma & Cosmetics Blue Line™ MASTERCLAVE® BacT/ALERT® sample preparation culture media preparation 3P® platelet microbial safety environmental monitoring Chromogenic Media BioBall® GENE-UP® Pathogen detection and method validation PCR pathogen detection enumeration EviS