Eurofins Scientific SE · EURONEXT:ERF
Eurofins Scientific — Investor Presentation (November 2012)
23 slides from Eurofins Scientific's investor presentation, Nov 5, 2012
Slide 1: Eurofins: 15 Years of Value Creation
Eurofins A global leader in bioanalytical testing in the food, environment and pharmaceutical sectors 15 YEARS OF VALUE CREATION Dr. Gilles Martin Chief Executive Officer www.eurofins.com
Slide 2: How it all started… 25 years ago
How it all started…25 years ago 1 technology SNIF-NMR 4 employees 1 Mission 2
Slide 3: Eurofins' Mission: Health, Safety & Environment with the best in bioanalysis
Eurofins’ Mission is to contribute to global Health, Safety & Environment with the best in bioanalysis Eurofins provides testing services in three main areas: Food Environment Pharmaceuticals “Recent trends in global food production, processing, distribution and preparation are creating an increasin
Slide 4: A walk down Memory Lane – IPO October 1997
A walk down Memory Lane – IPO October 1997 4
Slide 5: Eurofins' Ambitious Development Plan
A walk down Memory Lane – IPO October 1997 Eurofins’ Ambitious Development Plan Eurofins Scientific SA - Comptes de Résultats Prévisionnnels (In FFm) 1996 1997e 1998e 1999p 2000p Chiffre d'affaires 23.5 42.0 96.0 170.0 200.0 Achats et charges externes 8.5 16.8 35.5 60.3 69.0 en % du chiffre d'affair
Slide 6: If you think Eurofins is aggressively valued today…
If you think Eurofins is aggressively valued today… 2013F EV/EBITDA Closing price 31 October 2012 Source: Bloomberg, Broker reports 6
Slide 7: Not compared to its debut valuation!
Not compared to its debut valuation! Eurofins Scientific SA Initial Public Offering Eurofins Scientific 1996, 1997 Valuation IPO Price FF 120 per share (pre-split) EUR 1.83 per share (post-split) Equity Value FF 119m EUR 18m Enterprise Value FF 132m EUR 20m 7
Slide 8: Eurofins has vastly outperformed the market since its IPO
Eurofins has vastly outperformed the market since its IPO and each of its 3 equity offerings (based on share price of EUR 109.2 as of 28 September 2012) Eurofins: +5,498% (31% CAGR) Since IPO CAC 40: +23% (1% CAGR) SBF 120: +39% (2% CAGR) S&P 500: +60% (3% CAGR) Since SPO 1 Eurofins: +1,201% (20% CA
Slide 9: Five years ago… 10 years after the IPO
Five years ago…10 years after the IPO In 2007, Eurofins generated revenues of EUR 497m 9
Slide 10: 5 years after entering a new market, Eurofins typically achieves market leadership
5 years after entering a new market, Eurofins typically achieves market leadershîp New Markets 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 X No 1 Denmark: Food and Env. Brazil: Food Testing No 1 France Environment X No 1 USA: Pharma Products Testing X No 1 Sweden, Norway: Food and En
Slide 11: Eurofins is well-positioned for future growth
Eurofins is well-positioned for future growth Eurofins 5 Year Report Card: 2006-2011 CAGR Investments of the last 5 years have started to pay off 2011 Achievements 8% organic growth versus 5% 54.6% objective EUR 829m revenues versus min. EUR 800m objective EUR 152m adjusted EBITDA versus EUR 145m ob
Slide 12: Eurofins Today
Eurofins Today Best in class technology and quality give best brand High-growth, non-cyclical markets driven by secular protection mega-trends No. 1 or 2 worldwide in most business lines Advancing globalisation but with very few global Strong international presence testing suppliers State-of-the-art
Slide 13: What next? Where are we headed?
What next? Where are we headed? Current revenue split : N. America 22.1% France 19.7% Germany 18.3% Nordic Region 13.8% Others <11.8% Benelux 8.8% UK & Ireland 5.3% Entry into high- growth markets with 17 start ups 80% of the world’s population still has limited access to testing laboratories 13
Slide 14: What next? Where are we headed?
What next? Where are we headed? EUR 2,000 Revenues 2x in 5 years 15% CAGR Revenues 3x in 3 years 29% CAGR Revenues 4x in 3 years 38% CAGR * Company estimates 14
Slide 15: Appendix: Additional Slides
APPENDIX Additional Slides 15
Slide 16: Eurofins' Food & Feed testing offering is the most comprehensive in the market
Eurofins’ Food & Feed testing offering is the most comprehensive in the market Agricultural production, product Production Retail & Distribution development Microbiology Sensorial Dioxins Veterinary drug Vitamins Quality Control residues Authenticity Pesticides Organic residues POPs Labelling GMO My
Slide 17: Eurofins Pharma Services: activity groups
Eurofins Pharma Services: 5 activity groups Genomics Pre-clinical / Clinical Registration Pharma Early (Central Products Development Laboratory) Testing / cGMP QC Sequencing Pharmacology Biomarkers Regulatory/Biocides/ Impurities Analysis Oligonucleotides Bioanalytical Bioanalysis Chemicals/Agro- St
Slide 18: Eurofins serves all the main environmental testing markets
Eurofins serves all the main environmental testing markets With Lancaster, Eurofins is the No.1 environmental testing service provider in the world Lancaster Environmental Consulting and Testing is the laboratory sampling companies of choice for Fortune 500 are natural partners companies in the USA
Slide 19: Eurofins has grown to be a trusted partner for large companies
Eurofins has grown to be a trusted partner for large companies Company Outsourced Activity Country Danish Hydrology Inst. Official water reference lab Scandinavia Suez/Sita Envirolab The Netherlands Danish farmers association Steins’ water/environment laboratory Denmark Southern Water Water testing
Slide 20: Eurofins' strategy builds high Barriers to Entry
Eurofins’ strategy builds high Barriers to Entry Offering a premium quality service … ... and leveraging internal efficiencies Portfolio: over 100,000 reliable methods – Industrialising the laboratory process: unique in the world and ahead of rationalisation of sites and personnel competition Compet
Slide 21: Eurofins' strategy aims at building long lasting competitive advantages
Eurofins’ strategy aims at building long lasting competitive advantages Leading technology Quality of customer service Competence Centres & R&D activities Extensive expertise in local regulations for all major markets, and one-stop contact for Proprietary technologies for proof of compliance in mult
Slide 22: Outlook: becoming the world leader in the bioanalytical testing market
Outlook: becoming the world leader in the bioanalytical testing market Sustainable Market Growth Drivers + Key Success Factors = Solid Outlook Food safety & contamination issues Unique technological portfolio of over 100,000 methods 2013 revenue objective New regulations (e.g. REACH) of EUR 1bn to b
Slide 23: Post acquisition and integration into Eurofins, both sales and profits increase significantly
Post acquisition and integration into Eurofins, both sales and profits increase significantly Illustration Growth drivers post acquisition: 1) Sales increase through cross selling of Actual example of an acquired lab: Eurofins lab specialities internationally 2) Cost reduction – focus on most freque
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