bioMerieux SA · EURONEXT:BIM
bioMerieux SA — FY2017 Earnings Presentation
41 slides from bioMerieux SA's earnings presentation, Feb 28, 2018
Slide 1: 2017 Annual Results & 2018 Outlook
2017 Annual Results & 2018 Outlook Investor Presentation – February 28th, 2018 PIONEERING DIAGNOSTICS
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
AGENDA > OVERVIEW OF BIOMERIEUX 2017 BUSINESS REVIEW 2017 FINANCIAL RESULTS 2018 OUTLOOK
Slide 4: bioMérieux at a glance
bioMérieux at a glance + 50 YEARS CLINICAL APPLICATIONS OF EXPERTISE IN INDUSTRIAL APPLICATIONS ~80% of revenues IN VITRO DIAGNOSTICS ~20% of revenues Sales amounting to 1,600 people A large installed base of €2.3 billion dedicated to R&D 92,800 systems About Strong commitment 91% 10,400 to innovati
Slide 5: bioMérieux: mission, strategy and strengths
bioMérieux: mission, strategy and strengths PIONEERING DIAGNOSTICS to improve public health, especially in the fight against infectious diseases. MICROBIOLOGY MOLECULAR BIOLOGY IMMUNOASSAYS Maintain leadership positions Own the rapidly growing market of Reinforce specialty positioning in both clinic
Slide 6: bioMérieux provides solutions to manage infectious diseases and improve patient care
bioMérieux provides solutions to manage infectious diseases and improve patient care FIGHT SEPSIS CURB DEVELOP SYNDROMIC MANAGE PROTECT ANTIMICROBIAL DIAGNOSIS FOR EMERGENCY CONSUMERS’ RESISTANCE INFECTIOUS DISEASES CONDITIONS HEALTH 6
Slide 7: Agenda
AGENDA OVERVIEW OF BIOMERIEUX > 2017 BUSINESS REVIEW 2017 FINANCIAL RESULTS 2018 OUTLOOK
Slide 8: FY2017 key figures
FY2017 key figures > Consolidated Sales > Contributive Operating Income €2,288 million €335 million + 8.8% reported +12.4% reported + 10.2% organic 14.6% of sales > Net Income > Balance Sheet €238 million Leverage 0.3 + 32.6% reported 10.4% of sales Gearing 9% 8
Slide 9: 2017 key launches and events
2017 key launches and events Molecular FDA clearance and CE-marking of FILMARRAY® RP2 and RP2plus Biology FDA clearance of BACT/ALERT® VIRTUO™, RAPIDEC® CARBA NP, and VITEK® MS Microbiology extended database FDA clearance of VIDAS® procalcitonin test in LRTI* to aid antibiotic management Immun
Slide 10: FY2017 sales by geography
FY2017 sales by geography: strong sales dynamic at 10.2% organic growth AMERICAS EMEA* ASIA PACIFIC €1,006m €878m €397m +16.5% +3.9% +11.0% 44% 39% 17% GROUP €2,288m +10.2% 10 * EMEA: Europe, Middle East, Africa
Slide 11: FY2017 sales by application
FY 2017 sales by application: growth supported by all product lines INDUSTRY +9.8% MICROBIOLOGY +6.7% GROUP €2,288m +10.2% MOLECULAR +38.6% IMMUNOASSAYS +2.5% 11
Slide 12: FY2017 sales by type of offer
FY 2017 sales by type of offer: a recurring and resilient business model > Reagents & Services > Installed base 90% of sales made of reagents & services + 4,900 units in 2017 92,800 units as of Dec 31, 2017 12
Slide 13: Microbiology: a comprehensive portfolio serving the fight against AMR
MICROBIOLOGY: a comprehensive portfolio of solutions serving the fight against AMR Antimicrobial Resistance (AMR) “An increasingly serious threat to global public health”, WHO Manage HAI Optimize the use of antibiotics Fight against MDRO Antibiotic Susceptibility Culture Identification Testing CHROM
Slide 14: BIOFIRE FILMARRAY leading the way in syndromic testing
BIOFIRE FILMARRAY® leading the way in syndromic testing of infectious diseases Installed base 6,100 units (+2,100) Grow the installed base and its consumption Sales €368m (+50%) Customers 1,900 (+500) 7 available panels (4 respiratory, 1 meningitis, 1 GI, 1 BCID) Enlarge the FILMARRAY® menu
Slide 15: VIDAS towards a broadened portfolio of high medical value markers
VIDAS® towards a broadened portfolio of high medical value markers Procalcitonin (PCT) Acute Kidney Injury (AKI) Price pressure due to increased NephroCheck® helps determine if certain Traumatic Brain Injury (TBI) competition hospitalized patients are at risk of developing moderate to severe acute F
Slide 16: Industry applications reinforcing leadership with strong 10% growth
INDUSTRY APPLICATIONS reinforcing leadership with strong 10% growth in 2017 Market bioMérieux growth Customer trends drivers in 2017 needs CAGR 6-8%* Immunoassay VIDAS® FOOD Globalization Molecular GENE-UP ® Consolidation Consumer Safety Productivity Consistency of QC methods between
Slide 17: Agenda
AGENDA OVERVIEW OF BIOMERIEUX 2017 BUSINESS REVIEW > 2017 FINANCIAL RESULTS 2018 OUTLOOK
Slide 18: Consolidated P&L as of December 31, 2017
Consolidated P&L as of December 31, 2017 In €m 2017 As a % 2016 As a % % Change of sales of sales 2017 / 2016 Net sales 2,288 100% 2,103 100% + 8.8% Gross profit 1,212 53.0% 1,101 52.3% + 10.1% Contributive operating income (1) 335 14.6% 298 14.2% + 12.4% Operating income 315 13.8% 282 13.4% + 11.5%
Slide 19: Net sales as of December 31, 2017
Net sales as of December 31, 2017 Currency Change in scope Organic effect of consolidation growth + 10.2% USD: - € 17m CNY: - € 6m o/w > half from TRY: - € 5m FILMARRAY® + 8.8% 19
Slide 20: Gross profit as of December 31, 2017
Gross profit as of December 31, 2017 Currency Organic Others effect growth + Product mix ̵ Depreciations Sales: + €215m x 52.3% + 10.1% 20
Slide 21: Contributive operating income as of December 31, 2017
Contributive operating income* as of December 31, 2017 Gross profit SG&A R&D tax credits, grants R&D & royalties received 26.4% in 2017 13.3% (vs. 27.1% in 2017 in 2016) (vs. 12.9% in 2016) o/w FOREX = - €5m 14.2% 14.6% of sales of sales + 12.4% 21 * Earnings Before Interest and Tax deriving from or
Slide 22: Net Income as of December 31, 2017
Net Income as of December 31, 2017 In €m 2017 As a % 2016 As a % % Change 2017 / 2016 of sales of sales Contributive operating income 335 14.6% 298 14.2% + 12.4% BioFire acquisition related costs - 18 - 25 Non-recurring items -2 + 10 Operating income 315 13.8% 282 13.4% + 11.5% Net financial expense
Slide 23: Tax rate as of December 31, 2017
Tax rate as of December 31, 2017 2017 2016 French tax rate Foreign & reduced tax rates Tax credits Others (1) Recurring effective tax rate US tax reform Non-recurring items (2) Effective tax rate (1) Withholding tax, utilization of NOLs 23 (2) Mainly tax reassessments offset by the invalidation of t
Slide 24: Cash flow statement as of December 31, 2017
Cash flow statement as of December 31, 2017 In €m 2017 2016 Contributive operating income 335 298 Inventory: + €37m Depreciation and amortization 141 143 Payables: - €1m EBITDA (1) 475 441 Receivables: - €16m Operating working capital requirement - 38 - 33 Others: - €26m Other cash flow from operati
Slide 25: Summarized balance sheet as of December 31, 2017
Summarized balance sheet as of December 31, 2017 Equity Goodwill (€1,621m in 2016) (€471m in 2016) Available financing facilities Instruments €300m bond (€97m in 2016) ISIN: FR0011592096 October 2013 - October 2020 Annual coupon: 2.875% €500m syndicated facility Other non-current Maturit
Slide 26: Agenda
AGENDA OVERVIEW OF BIOMERIEUX 2017 BUSINESS REVIEW 2017 FINANCIAL RESULTS > 2018 OUTLOOK
Slide 27: Move forward multiyear initiatives to drive profitable and sustainable growth
Move forward multiyear initiatives to drive profitable and sustainable growth Supply chain re-engineering Global Commercial leading to improved KPIs in Performance initiative terms of customer satisfaction and inventory management Global CRM tool deployed in ~30 countries Profitable and Customer Ope
Slide 28: 2018: bioMérieux can leverage its unique position
2018: bioMérieux can leverage its unique position to address the challenge of diagnostics for infectious diseases Increasing recognition of the value of Data & information becoming Increasing regulatory requirements Diagnostics but investment in pivotal to ease decision making in terms of quality an
Slide 29: 2018 Outlook
2018 Outlook 8 to 9% Expected strong Q1 due to flu season Sales organic at constant exchange rates Estimated €120m of negative FOREX growth & scope of consolidation impacts Estimated €40m of negative FOREX Contributive impacts operating €325m to €345m Reinforce R&D efforts on molecular a
Slide 30: Takeaways
Takeaways 2017 A year of solid commercial and operational performance RESULTS Organic growth: approx. twice the market growth Initiatives to improve organization efficiency are underway, starting to deliver tangible results Improvement of profitability by 40 bps while increasing R&D efforts by
Slide 31: Pioneering Diagnostics
PIONEERING DIAGNOSTICS
Slide 32: Appendices
APPENDICES
Slide 33: bioMérieux is recognized for its Corporate Social Responsibility policy
bioMérieux is recognized for its Corporate Social Responsibility policy RESPONSIBILITY TO THE RESPONSIBILITY RESPONSIBILITY ENVIRONNEMENT TO OUR WORKFORCE TO THE SOCIETY Reduce and control our Create an optimal working Help make diagnostics accessible, environmental impact to preserve environment th
Slide 34: 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 35: Antimicrobial resistance: a recognized global healthcare challenge
Antimicrobial resistance: a recognized global healthcare challenge for all countries 2/3rd of inappropriate 50,000 Annual antibiotic resistance cost (US) 2 Facts & Figures antibiotic use in respiratory deaths / year due to diseases (US) 1 resistant infections (EU & US alone) 1 $20b VIDAS® BRAHMS P
Slide 36: Sepsis: creating medical value through a full set of dedicated solutions
Sepsis: creating medical value through a full set of dedicated solutions Every Sepsis strikes about Annual sepsis cost A medical & 3-4 sec economic burden 30 million people someone in the world dies of $24b per year worldwide (US) sepsis ETEST® Workflow optimization VITEK® 2 Sepsis Result Specimen c
Slide 37: Evolution of CAPEX
Evolution of CAPEX 2012 2013 2014 2016 2017 2018e Instruments 9-10% of sales Other capital expenditure Intangible capital expenditure TOTAL In % of sales 8.0% 9.8% 10.2% 11.2% 7.9% Change in PPE payables + €4m - €8m - €3m - €3m + €3m 37 Cash outlays €131m €158m €208m €233m €183m
Slide 38: 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® VIRTUO™ BACT/ALERT® 3D VITEK® ID cards VITEK® 2 COMPACT VITEK® AST cards 38 To know mor
Slide 39: Clinical Applications Immunoassays and Molecular Biology
Clinical Applications Immunoassays and Molecular Biology Immunoassays Molecular Biology VIDAS® VIDAS® 3 easyMAG® and EMAG® ESTREAM® MINIVIDAS® FILMARRAY® reagents VIDAS® reagents BIONEXIA® and VIKIA® rapid tests FILMARRAY® 2.0 FILMARRAY® Torch 39 To know more about the whole bioMérieux offer in clin
Slide 40: 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
Slide 41: Contacts
CONTACTS Ordinary shares (EUR) Sylvain MORGEAU ISIN: FR0013280286 Investor Relations bioMérieux is listed on Euronext Paris [email protected] Reuters: BIOX.PA / Bloomberg: BIM.FP +33 (0)6 01 27 56 46 American Depository Receipt (1:0.1 USD) Reuters: BMXXY.PK / Bloomberg: BMXXY.US Follow