bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2013 Earnings Presentation
41 slides from bioMerieux SA's earnings presentation, Mar 19, 2014
Slide 1: Business Review for 2013
Business Review for 2013 Paris - March 19, 2014
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 Introduction 2013 Sales 2013 Financial Results Molecular Biology Strategy and BioFire Integration Objectives and Conclusion
Slide 4: 2013 major achievements
2013 major achievements } bioMérieux delivers: 2013 FY 2013 objectives achievements Organic sales growth 3 - 5% 4.6% ü Operating income before non-recurring items €255 - 270m €262m ü } Solid cash flow generation: €109m ü } Build a strong position in molecular diagnostics for infectious disease
Slide 5: 2013: an important, constructive year in bioMérieux's 2015 roadmap
2013: an important, constructive year in bioMérieux’s 2015 roadmap 2012 - 2015 2013 MILESTONES ROADMAP Growth in sales } North America } Industrial applications ü faster growth up 6.8% (like-for-like) Drive growth up 4.6% like-for-like at the top end of the } Emerging markets } Southern Europe
Slide 6: Overview
Overview Introduction 2013 Sales 2013 Financial Results Molecular Biology Strategy and BioFire Integration Objectives and Conclusion
Slide 7: Solid organic growth in sales, at the top end of the target range
Solid organic growth in sales, at the top end of the target range North America: + 4.8% Europe, Middle East & Africa: + 0.9% Europe: - 1% Metera*: + 11% 51% 22% 19% Sales at Dec. 31, 2013 €1,588m + 4.6%, organic growth** 8% + 1.2%, in euros Latin America: + 6.2% Asia-Pacific: + 11.6% A well-balanced
Slide 8: Faster organic growth in North America; very attractive dynamics in emerging markets
Faster organic growth in North America Very attractive dynamics in emerging markets 11.3% 4.2% 3.0% 1.8% 1.9% 1.1% 1.7% -2.5% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2013 Q2 2013 Q3 2013 Q4 2013 North America: + 4.8% Europe, Middle East & Africa: + 0.9% 17.9% 11.6% 10.5% 9.3% 6.9% 5.1% 3.5% 3.9% Q1 2013
Slide 9: A robust portfolio of technologies with leadership positions
A robust portfolio of technologies with leadership positions } Fast growth in industrial applications and molecular biology: { 2 areas recently reinforced with respectively AES and ARGENE acquisitions { Thus driven by commercial synergies Sales per Technology 2013 (€m) % Change Highlights Clinica
Slide 10: AES and ARGENE, successful integrations delivering strong synergies
AES and ARGENE, 2 sucessfull integrations delivering strong synergies } Product offering fully integrated { Industrial applications: a complete offering Media AES VIDAS® and TEMPO® CHEMUNEX® VITEK® 2 Blue LineTM mini VIDAS® Compact { Molecular biology: high medical value solutions } Drive positi
Slide 11: #1 world positions in clinical and industrial microbiology
#1 world positions in clinical and industrial microbiology } Clinical microbiology (2013) } Industrial microbiology (2013) { Estimated market size: €1.9b { Estimated market size: €1.6b { Est. market annual growth rate: 3 - 4% { Est. market annual growth rate: 4 - 6% { Est. market share: ∼ 42%
Slide 12: Reagents and services drive sales growth
Reagents and services drive sales growth, demonstrating the effectiveness of our business model Rapid development of our service offer Instruments 12.8% 12.0% Services and 6.1% 7.3% 7.3%* Other 6.1% 5.6% Reagents 81.1% 80.7% 5.2% 5.0% 2012 2013 2009 2010 2011 2012 2013 Reagents and services: 88% of
Slide 13: Our sales growth drivers are in place and effective (regions)
Our sales growth drivers are in place and effective Our vision from 2014 onwards per region Europe, Middle East & Africa: Resist in a still highly contrasted environment North America: Europe: low single digit growth Mid single digit growth } Based on: { Our worldwide reach { Our diversified prod
Slide 14: Our sales growth drivers are in place and effective (technologies)
Our sales growth drivers are in place and effective Our vision from 2014 onwards per technology VIDAS® line Clinical microbiology Accelerate the launch of VIDAS® 3 Launch VirtuoTM and the incubator Extend geographic coverage integrating imaging technologies Focus on recently launched assays Fix prod
Slide 15: Overview
Overview Introduction 2013 Sales 2013 Financial Results Molecular Biology Strategy and BioFire Integration Objectives and Conclusion
Slide 16: Consolidated data at December 31, 2013
Consolidated data (in € millions) At December 31, 2013 In €m 2013 As a % 2012 As a % % Change of sales of sales 2013 / 2012 (1) Net sales 1,588 100% 1,570 100% + 1.2% Gross profit 825 51.9% 814 51.9% + 1.3% Operating income 262 16.5% 260 16.6% + 0.8% before non-recurring items(2) (3) Operating incom
Slide 17: Net sales: robust organic sales growth
Net sales Robust organic sales growth Organic growth Net sales Currency Net sales effect + €72m - €54m $: - €12m €1,588m Others: - €42m €1,570m + 4.6% + €18m + 1.2% 2012 2013 16
Slide 18: 2013 strong currency effect but Group's fundamentals are intact
2013 strong currency effect but Group's fundamentals are intact Managing sales growth in a volatile monetary environment Organic growth rate - 0.5% - 0.8% - 1.4% + 4.6% Growth rate - 0.7% in euros + 1.2% Group EMEA* North America Asia-Pacific Latin America Group 17 * Europe, Middle East & Africa
Slide 19: Gross profit
Gross profit At December 31, 2013 Organic growth Other - €26m Gross profit Gross profit + €37m - Production in Durham Sales: + €72m - FDA compliance costs x 51.9% - Freight costs - Currency impact €825m €814m + Favorable product mix + R&D-related revenue 51.9% of + Revision in pension plans sales 51
Slide 20: Operating income before non-recurring items
Operating income before non-recurring items At December 31, 2013 Operating Operating income before R&D tax income before R&D credits & non-recurring Gross profit SG&A Business dev. Royalties non-recurring items + €11m + €4m - €15m received items 25.4% of sales 11.7% of sales + €2m (26.1% 2012) (10.9
Slide 21: Net result
Net result (in € millions) At December 31, 2013 In €m 2013 As a % 2012 As a % % Change of sales of sales 2013 / 2012 Operating income 262 16.5% 260 16.6% + 0.8% before non-recurring items Non-recurring items* -5 - 0.3% - 25 - 1.6% Operating income 257 16.2% 235 15.0% + 9.6% Net financial expense - 1
Slide 22: Effective tax rate
Effective tax rate At December 31 + 3.7% - 2.7% + 1.2% - 3.8% + 1.6% + 1.6% - 3.3% Tax Others - 0.3% Non Reduced recognized credit Reduced Non / foreign deferred tax presentation / foreign recognized Tax rates assets rates deferred tax credit Others & permanent & permanent assets presentation differ
Slide 23: Cash flow statement
Cash flow statement (in € millions) At December 31, 2013 In €m 2013 2012 Operating income before non-recurring items 262 260 Depreciation and amortization 91 95 EBITDA (1) 353 355 In 2012: incl. €35m in payments Operating working capital requirement - 40 - 26 collected on Other cash flow from operat
Slide 24: Capital expenditure
Capital expenditure At December 31, 2013 2012 2013 2009 2010 2011 €33m €30m €38m €36m Instruments €34m €68m €77m Other capital €53m €55m expenditure €54m Intangible capital €30m €31m €30m expenditure €20m €20m Total €121m €122m €108m €131m €127m % of sales 9.9% 9.0% 7.5% 8.4% 8.0% Change in PPE paya
Slide 25: Summarized balance sheet
Summarized balance sheet At December 31, 2013 Assets Liabilities Goodwill (€313m) €305m €1,267m Equity (€1,160m) Instruments €57m (€62m) Secure financial facilities { €300m bond Other non-current • With institutional investors assets* €638m • October 2013 - October 2020 (€634m) • Annual coupon: 2.8
Slide 26: Overview
Overview Introduction 2013 Sales 2013 Financial Results Molecular Biology Strategy and BioFire Integration Objectives and Conclusion
Slide 27: Our high medical value strategy in molecular biology
Our high medical value strategy in molecular biology } From manual products to automation Infectious disease diagnostics From culture to molecular biology remain our main priority _ Molecular biology: a growing area for bioMérieux { Leverage and maximize our 2 complementary solutions { For hospi
Slide 28: Molecular infectious disease testing for large and small labs
bioMérieux: molecular infectious disease testing for large and small labs easyMAG® / Life Technologies thermocyclers / ARGENE® { Efficient modular workflow Highly centralized settings { Easily integrated into existing lab structures { Adapted to large and flexible batches + FilmArray® Specialist
Slide 29: FilmArray adapted to market need for syndromic molecular testing
FilmArray® is adapted to strong market need for just-in-time and syndromic molecular testing A revolutionary molecular biology system for hospital labs } Accurate, high multiplexed testing Syndromic approach: determine the cause of respiratory infections, sepsis and other infections, whatever the a
Slide 30: Make FilmArray the standard for syndromic approach
Make FilmArray® the standard for fast and easy syndromic approach to infectious diseases } Providing physicians with a quick answer to their number one question: “What is making my patient sick?” CE-marked and FDA-cleared Under development Meningitis Gastro intestinal Sepsis High Enable faster trea
Slide 31: Simplified medical decision process
bioMérieux: the only provider able to answer all microbiology lab needs Urgent samples generally arrive in microbiology labs Yes (20%(1)) Urgent? No (80%(1)) Simplified medical decision process Syndromic? Are multiple Classic(2) pathogens possible? micro. Yes No FilmArray® Classic(2) micro. Results
Slide 32: FilmArray will ideally complement our microbiology offer
FilmArray® will ideally complement our microbiology offer } Classic microbiology will remain at the heart of microbiology testing { Low cost: up to ∼ 10 x less than molecular testing(1) Antibiotic Susceptibility Testing (AST) { AST(2): definitive guidance for antibiotic prescription based on an e
Slide 33: BioFire integration: make FilmArray a success worldwide
BioFire integration Make FilmArray® a success all over the world } Our action plan for 2014: 3 privileged dimensions focusing on positive synergies { Marketing • Integrate U.S. commercial sales forces • Take advantage of bioMérieux’s direct sales force in Europe { Manufacturing • Start manufactur
Slide 34: Overview
Overview Introduction 2013 Sales 2013 Financial Results Molecular Biology Strategy and BioFire Integration Objectives and Conclusion
Slide 35: 2014 organic sales growth objective
2014 organic sales growth objective 2014 ORGANIC SALES GROWTH OBJECTIVE 3 - 5% Organic sales At constant exchange rates growth objective: & scope of consolidation Forex (USD, BRL, INR, ARS,TRL) BioFire net sales Reported sales growth negative impact positive impact in euros will also include: ∼ €50m
Slide 36: 2014 objective for contributive operating income
2014 objective for contributive operating income before non-recurring items (contributive EBIT) 2014 OBJECTIVE FOR CONTRIBUTIVE OPERATING INCOME BEFORE NON-RECURRING ITEMS* (CONTRIBUTIVE EBIT) Including: - Negative currency effect: ∼ > €25m, based on currently observed exchange rates Contributive EB
Slide 37: Operational initiatives to take advantage of market growth
bioMérieux operational initiatives to take full advantage from market growth* } Major operational initiatives, currently underway { Clinical microbiology: launch of game-changing systems { Services: new engine for growth { Durham site: investment to return to a more stable situation for producti
Slide 38: Long-term structural drivers
bioMérieux long-term structural drivers to take full advantage from market growth* } Resilient profile, reaffirmed in 2013 { Robust organic sales growth with a well-balanced geographic reach { Financial solidity and sustained investments in manufacturing and innovation } Clear strategy with 4 su
Slide 39: Appendices
Appendices Financial metrics
Slide 40: Main financial metrics
Main financial metrics At December 31 2013 2012 Before BioFire acquisition EBIT (1) (€m) 262 260 EBIT / Sales (%) 16.5% 16.6% EBITDA (2) (€m) 353 355 EBITDA / Sales (%) 22.2% 22.6% Free cash flow (3) (€m) 109 134 Cash conversion (4) 30.9% 37.7% Gearing (5) (%) - 2% 4% Leverage (6) (%) - 0.1 0.1 (1)
Slide 41: Sound financial situation and historical, rapid deleveraging
Sound financial situation and historical, rapid deleveraging 400,0 2,0 1,8 350,0 1,6 300,0 1,4 250,0 1,2 200,0 1,0 150,0 0,8 0,6 100,0 0,4 50,0 0,2 0,0 0,0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2013 pro forma -50,0 -0,2 (€m) EBITDA Net debt Leverage Gearing ratio Acquisiti