bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2009 Earnings Presentation
48 slides from bioMerieux SA's earnings presentation, Mar 8, 2010
Slide 1: Results 2009 / bioMérieux 2015
Results 2009 bioMérieux 2015 March 8, 2010
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 2009 Performance 2009 Financial Results 2007-2009: Key Achievements 2015 Strategic Priorities Objectives and Conclusion
Slide 4: 2009: Solid growth and strong achievements
2009: Solid growth and strong achievements ` Growth in sales and earnings ^ Sales €1,223m + 7.7% like-for-like / + 10.4% including bus.dev. ^ Operating income before non-recurring items €213m 17.4% of sales / + 14.1% vs. 2008 ` Operational achievements ^ Best customer service rate of the last 5 year
Slide 5: Overview
Overview 2009 Performance 2009 Financial Results 2007-2009: Key Achievements 2015 Strategic Priorities Objectives and Conclusion
Slide 6: Net sales
Net sales Business development Net sales Organic + €30m growth + €85m Currency Net sales effect €1,223m - €3m + 7.7% + 2.7% €1,111m + 10.4% 2008 2009 5
Slide 7: Growth in gross profit
Growth in gross profit Other Gross profit Business Organic development + €14m growth + €7m + Higher average selling prices + €46m + Lower raw material purchasing prices Gross profit + Lower fuel €660m surcharge + Economies of scale and productivity 53.9% Sales: + €85m gains of sales x 53.4% + Lower
Slide 8: Growth in operating income before non-recurring items
Growth in operating income before non-recurring items Gross profit SG&A Operating - €29.8m income before R&D Royalties non-recurring Operating + €66.6m received items - €10.3m income before 25.8% of sales non-recurring 25.8% in 2008 items €1m decline 11.7% of sales in BD royalty 12% in 2008 income +
Slide 9: Growth in net income
Growth in net income Operating income Other before non-recurring non-recurring income items and expense Net financial Income tax - €8.8m expense - €1.6m Net income + €2.2m + €26.4m Average income tax rate: 26.8% 2009: - €10m Boxtel restructuring - €8m ` New France / U.S. tax convention + €4m Net inc
Slide 10: Earnings per share
Earnings per share + 14% + 33% Recommended dividend €3.75 €0.92/share (€36m) €3.29 €2.48 2007 2008 2009 9
Slide 11: Cash flow statement
Cash flow statement In € millions 2009 2008 Change EBITDA (1) 286 262 + 24 Income tax and financial expense (60) (60) Operating working capital requirements (24) (4) (20) Acquisition of PPE and intangible assets (2) (120) (92) (28) Other 5 (6) + 11 Free Cash Flow 87 100 (13) Acquisition of shares (3
Slide 12: Summarized balance sheet
Summarized balance sheet Assets Liabilities Goodwill €167m Instruments €68m €806m Equity Other non-current assets €401m Operating WCR: 20.8% WCR €172m vs. 20.6% in 2008 Net debt €2m 11
Slide 13: Overview
Overview 2009 Performance 2009 Financial Results 2007-2009: Key Achievements 2015 Strategic Priorities Objectives and Conclusion
Slide 14: Solid acceleration in sales and profitability
2007-2009 Solid acceleration in sales and profitability 2012 strategic plan 2012 Objective Performance announcement 2009 14% Operating margin** 17.4% of sales 16-17% 12% 12% CAGR 07-09 13% Growth in operating profit** 8% 10.4% CAGR Sales* CAGR 07-09 Growth in sales* 9.8% 7-9% 9.4%* 7.9% 5.9% 2006 20
Slide 15: Business development accomplishments
2007-2009 Business development accomplishments ` 6 acquisitions ` Globalization of headquarters, on 3 continents Marcy l’Etoile Cambridge Ì Ì Shanghai Ì 14
Slide 16: Performance 2007-2009
2007-2009 Performance Microbiology: undisputed leadership VIDAS®: successful repositioning Enhanced commercial network Solid progress in manufacturing Strong financial performance New talents for key jobs Industrial Applications: 2 acquisitions in 3 years Molecular Biology: CAGR 07-09 growth rate ≈
Slide 17: Overview
Overview 2009 Performance 2009 Financial Results 2007-2009: Key Achievements 2015 Strategic Priorities Objectives and Conclusion
Slide 18: bioMérieux dynamics
bioMérieux dynamics OPPORTUNITIES THREATS ^ Unmet medical & industrial ^ Price pressure due to customer needs in microbiology consolidation ^ High growth emerging countries ^ Emergence of new technologies ^ Molecular biology and POC* ^ New entrants in IVD growing at about 10% ^ New innovative biomar
Slide 19: bioMérieux 2015: Focus on patient and disease management
bioMérieux 2015 Focus on patient and disease management Infectious disease management ` Bacterial and fungal infections: be the market innovator ^ Rapid microbiology program ^ Full Microbiology Lab AutomationTM ` Viral infections: investing selectively ^ Launch of VIDAS® NEW ^ Rapid testing ` Indust
Slide 20: New sources of growth
New sources of growth Biomarkers bioTheranostics and theranostics POC Philips deal & Meikang manual and automated Infectious diseases Meikang in developing countries Infectious diseases in developed countries Bacterial Barcodes BTF AB BIODISK PML Biomedics 19
Slide 21: A new, decentralized organization
A new, decentralized organization Worldwide commercial operations Development Development Development Development Development Marketing Marketing Marketing Marketing Marketing Production Production Production Production Production Microbiology Immunoassays Molecular Theranostics Industrial Biology A
Slide 22: Overview
Overview 2009 Performance 2009 Financial Results 2007-2009: Key Achievements 2015 Strategic Priorities Geographic strategy Objectives and Conclusion
Slide 23: A strong international presence
A strong international presence ` Expansion of the international sales network with 39 subsidiaries ` Strengthened sales and technical support teams ^ North America in 2008 ^ Asia-Pacific in 2009 EMEA*: 57% North America: 24% Ì Ì Ì Latin America: 7% Ì Ì Asia-Pacific: 12% 4 new subsidiaries * EMEA: E
Slide 24: bioMérieux 2015: Focus on greatest opportunities around the globe
bioMérieux 2015 Focus on greatest opportunities around the globe ` Reinforced presence in the U.S. ^ Still world’s n°1 IVD market ` Greater focus on emerging markets ^ A tailored strategy for Emerging 7 countries* • Strong development opportunities ^ A fully integrated company in China • Among the t
Slide 25: bioMérieux 2015: A customer-focused organization
bioMérieux 2015 A customer-focused organization Marketing capabilities Optimization of product launches New market analysis Reinforced CRM Comprehensive training courses Sales capabilities Service capabilities “Sales Force Automation” Expanded service offer Comprehensive training course New service
Slide 26: Overview
Overview 2009 Performance 2009 Financial Results 2007-2009: Key Achievements 2015 Strategic Priorities Technology strategies Objectives and Conclusion
Slide 27: Microbiology: market environment
Microbiology: market environment Opportunities ` Unmet medical needs (time to result, Healthcare-Associated Infections…) ` Growing need of automation due to loss of skilled employees ` New technologies (mass spectrometry, Raman spectrometry…) ` Consolidation of microbiology laboratories Challenges `
Slide 28: Microbiology: bioMérieux assets
Microbiology: bioMérieux assets 50% Microbiology Other ` bioMérieux: the industry leader Molecular Biology ^ A complete line of manual and automated products for Industry • Identification • Antibiotic susceptibility testing Immunoassays • Resistance mechanisms ^ A unique concept: FMLA™ to fully auto
Slide 29: Microbiology: strategy 2015
Microbiology: strategy 2015 Lead the market with breakthrough innovation `1 Strengthening existing business in growth-based microbiology solutions ^ VITEK®: continuous menu expansion ^ BacT/ALERT®: a new platform under development ^ PPM: new innovative products and COGS reduction `2 Expanding the FM
Slide 30: Microbiology: strategy 2015
Microbiology: strategy 2015 From a company focused on products in the laboratory... Products Information Services Technology …To a company focused on patient care, “from sample to clinician’s brain” 29
Slide 31: Immunoassays: market environment
Immunoassays: market environment Opportunities ` High growth in emerging countries ` Double-digit growth in near-patient testing demand (POC) ` Explosion of medical knowledge and discovery of innovative biomarkers Challenges ` Laboratory consolidation, mainly in Southern Europe ` Aggressive competit
Slide 32: Immunoassays: bioMérieux assets
Immunoassays: bioMérieux assets Microbiology ` VIDAS®: a proven niche position Other Molecular Biology ^ The world’s 2nd largest installed base with 23,000 clinical systems Industry 27% ^ 91 clinical parameters ^ Successful positioning Immunoassays ` Rapid tests ^ Existing manual ranges: QuickVue® a
Slide 33: Immunoassays: strategy 2015
Immunoassays: strategy 2015 Become a high medical value test company 1` Maximizing the VIDAS® franchise Introduce new parameters Launch a new instrument Reduce production costs VIDAS® (NEW) `2 Taking a strong position in the POC market ^ Manual rapid tests: developing the menu - Meikang acquisition
Slide 34: Molecular Biology: market environment
Molecular Biology: market environment Opportunities ` Rapid market growth (≈ 10%) ` Booming demand for Healthcare-Associated Infection testing ` Explosion of medical knowledge, especially oncology biomarkers ` A more personalized approach to medicine Challenges ` Leading players with dominant positi
Slide 35: Molecular Biology: bioMérieux assets
Molecular Biology: bioMérieux assets ` Strong expertise in 2 technologies Microbiology ^ BOOM®: extraction Other Molecular Biology 6% ^ NASBA™: amplification Industry ` Innovation Immunoassays ^ Biomarkers, especially in oncology and sepsis ^ ADNA - Advanced Diagnostics for New Therapeutic Approache
Slide 36: Molecular Biology: strategy 2015
Molecular Biology: strategy 2015 Improve diagnostics and patient outcome through rapid microbiology and personalized medicine 1` Maximizing our current franchises ^ Extraction ^ Viral loads 2` Expanding our business in fast-growing markets ^ Healthcare-Associated Infection testing: enhanced menu on
Slide 37: Molecular Biology: platform roadmap for multiplexing and sequencing
Molecular Biology: strategy 2015 Platform roadmap for multiplexing and sequencing OEM solutions & exclusive partners Sample preparation Analyzers Information infectious diseases Technology & oncology System integration, clinical trials, regulatory, data base generation 36
Slide 38: Theranostics: market environment
Theranostics: market environment Opportunities ` Unmet medical needs and health economics call for personalized medicine ` Explosion of biomarkers ` Partnerships with pharmaceutical companies and other key stakeholders ` High valuation of innovative tests Challenges ` Rapidly evolving market, with n
Slide 39: Theranostics: bioMérieux assets
Theranostics: bioMérieux assets ` bioMérieux: one of the pioneers, with key assets ^ Experience through AST testing and HIV viral load ^ Recent acquisition of bioTheranostics (oncology and CLIA* service lab) ^ Large installed base, including 23,000 clinical VIDAS® ^ Independence from pharmaceutical
Slide 40: Theranostics: strategy 2015
Theranostics: strategy 2015 Be a partner of choice and bring innovative solutions to patients and doctors ` 1 Focusing on the right diseases with clear unmet medical needs ^ Infectious diseases, oncology and cardiovascular emergencies ^ Clinically validated biomarkers ^ Signature of new, flexible pa
Slide 41: Industrial Applications: market environment
Industrial Applications: market environment Opportunities ` Food safety initiatives, especially in the U.S. and in China ` Rapid monitoring to release biopharmaceutical products sooner ` Nutrition / Health / Prevention Challenges ` Difficult economic context and pharmaceutical business model ` Still
Slide 42: Industrial Applications: bioMérieux assets
Industrial Applications: bioMérieux assets Microbiology bioMérieux: the industry leader Other Molecular Biology ` Food solutions Industry 15% A complete range of validated solutions to equip food microbiology laboratories Immunoassays ^ Pathogen detection ^ Quality indicator enumeration ^ Connectivi
Slide 43: Industrial Applications: strategy 2015
Industrial Applications: strategy 2015 Reinforce global leadership through internal innovation and business development 1` Accelerate sales growth, achieving higher penetration in new markets ^ E7 countries ^ Middle East, Africa and Central Europe 2` Complete the pathogen testing portfolio ^ Foodbor
Slide 44: Overview
Overview 2009 Performance 2009 Financial Results 2007-2009: Key Achievements 2015 Strategic Priorities Objectives and Conclusion
Slide 45: 2015 Objectives
2015 Objectives ` 2010-2015 CAGR sales growth objective 7% to 9% At constant exchange rates Including business development ` 2015 operating margin* objective 18%-20% With R&D expenditure at about 12% of sales * Before non-recurring items, at 2009 exchange rates 44
Slide 46: 2010 Objectives
2010 Objectives ` 2010 organic* sales growth objective Around 7% ` 2010 operating margin** objective 17%-18% * Growth in sales at constant exchange rates and scope of consolidation ** Before non-recurring items, at constant exchange rates 45
Slide 47: Conclusion
Conclusion ` IVD market: one of the most promising healthcare markets ^ A key contribution to healthcare cost containment ^ Many growth opportunities ^ Theranostics ` bioMérieux: significant strengths ^ A long-term, innovation-focused vision With Clinical and Industrial Microbiology leadership… …Bui
Slide 48: Results 2009 / bioMérieux 2015
Results 2009 bioMérieux 2015 March 8, 2010