bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2013 Earnings Presentation
47 slides from bioMerieux SA's earnings presentation, Sep 4, 2013
Slide 1: 2013 First-Half Review: BioFire Diagnostics Acquisition
2013 First-Half Review BioFire Diagnostics Acquisition Paris - September 4, 2013
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 First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition Objectives and Conclusion
Slide 4: First-half 2013: effective management of our performance in a challenging environment
First-half 2013: effective management of our performance in a challenging environment } Sales €754m, up 2.1%*, lifted by a robust 4%* growth in Q2 Resilient } Operating income €125m, or 16.6% of net sales before non-recurring items } Preparation for our future { 11 new products launched { VIDAS
Slide 5: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition Objectives and Conclusion
Slide 6: A complete geographic footprint to rapidly seize sales growth opportunities
A complete geographic footprint to rapidly seize sales growth opportunities North America: + 1.9% Europe, Middle East & Africa: - 0.7% Europe:- 3% Metera*:+ 14% 52% 22% 17% H1 2013 sales €754m + 2.1%, organic growth 9% Latin America: + 7.3% Asia-Pacific: + 8.7% Organic growth accelerated during Q2 (
Slide 7: Expanding presence in emerging markets
Expanding presence in emerging markets Emerging countries: Rapid organic growth: 29% of bioMérieux’s sales and + 11% in first-half 2013 ∼ 20%* of global IVD market A major sales growth driver 71% 29% } ∼ 80%** of the world’s population } Healthcare reforms } Food safety programs } Local populati
Slide 8: Sales per technology: A unique competitive position
Sales per technology A unique competitive position } Strong focus on infectious diseases H1 2013 Microbiology % Change Highlights (€m) Clinical Microbiology 377 + 1.5% Reagents: + 4% 71% of sales with # 1 50% Industrial Applications 157 + 4.5% Q2 sales: +11% positions Immunoassays 175 + 0.9% VIDAS®
Slide 9: Reagents and services driving our activity
Reagents and services driving our activity 11.3% 10.2% Rapid development of our service offer Instruments Services and 6.0% 6.7% 6.7% Other 6.1% 5.6% 82.7% 83.1 83.1%% Reagents 5.2% 5.0% First-half First-half 2009 2010 2011 2012 First-half 2012 2013 2013 Objective of our service offer: Reagents and
Slide 10: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition Objectives and Conclusion
Slide 11: Consolidated P&L (in € millions)
Consolidated P&L (in € millions) In €m H1 As a % H1 As a % % Change of sales of sales 2013 2012 Net sales 754 100% 750 100% + 0.5%* Gross profit 397 52.6% 393 52.4% + 0.9% Operating income before non- 125 16.6% 128 17.0% - 2.0% recurring items Operating income 124 16.4% 125 16.6% - 0.6% Net income 8
Slide 12: Net sales
Net sales Organic growth Net sales Currency Net sales effect + €16m - €12m Mainly non U.S. + 2.1% €754m currencies €750m + €4m First-half 2012 + 0.5% First-half 2013 11
Slide 13: Gross profit
Gross profit Organic growth Other - €4m Gross profit Gross profit + €8m - Production difficulties in Durham Sales: + €16m - FDA compliance costs x 52.4% - Freight costs €397m €393m + Favorable product mix + 2012 AES and ARGENE 52.6% of 52.4% of acquisition accounting entries sales sales + Currency i
Slide 14: Operating income before non-recurring items
Operating income before non-recurring items Operating Operating income before R&D R&D tax credits & income before non-recurring Gross profit SG&A Business dev. Royalties non-recurring items + €4m - €1m received items - €16m - €10m 26.3% of sales (26.4% H1 2012) + €4m 11.7%- €7m of sales (10.5% H1 20
Slide 15: Net result (in € millions)
Net result (in € millions) In €m H1 As a % H1 As a % % Change of sales of sales 2013 2012 Operating income before non- 125 16.6% 128 17.0% - 2.0% recurring items Non-recurring items -1 - 0.2% -3 - 0.4% Operating income 124 16.4% 125 16.6% - 0.6% Net financial expense -5 - 0.7% -5 - 0.6% Income tax (
Slide 16: Cash flow statement (in € millions)
Cash flow statement (in € millions) In €m H1 H1 Change 2013 2012 EBITDA (1) 169 172 -3 (2) Operating working capital requirement - 55 - 11 - 44 Income tax and financial expense - 19 - 39 + 20 Capital expenditure (3) - 60 - 54 -6 Other 7 1 +6 Free cash flow 42 69 - 27 Acquisition of shares (4) 3 -3 D
Slide 17: Summarized balance sheet
Summarized balance sheet Assets Liabilities Goodwill (€313m) €310m Instruments €60m (€62m) Other non-current Equity assets* €623m €1,205m (€1,160m) (€634m) Operating WCR: 28.6% WCR vs. 25.9% H1 2012 (€199m) €255m €43m Net debt (€48m) 16 * Including assets held for sale Opening figures are presented
Slide 18: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition Objectives and Conclusion
Slide 19: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition Strengthening our Position as a Major Player in Infectious Disease Diagnostics and our Leadership in Clinical Microbiology Objectives and Conclusion
Slide 20: A new ground for our infectious disease franchise
A new ground for our infectious disease franchise } FilmArray®: a game-changing technology developed by BioFire Diagnostics { For a syndromic approach to infectious diseases { Enhancing medical value of diagnostics { Optimizing workflows in medical laboratories } Perfect strategic fit { Grow o
Slide 21: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition BioFire Competitive Positioning Objectives and Conclusion
Slide 22: BioFire Diagnostics: a highly innovative molecular biology company
BioFire Diagnostics: a highly innovative molecular biology company } An expert in molecular biology 2013 estimated sales $70m** { Over 20 years of experience in PCR* { For the healthcare and bio-surveillance industries FilmArray® { With a strong focus on innovation to: • Speed up medical results
Slide 23: FilmArray is rapid and easy-to-use
FilmArray® is rapid and easy-to-use } User-friendly sample-to-answer An integrated PCR system multiplex PCR system for rapid molecular detection of pathogens { Self-contained reagent and sample preparation cartridge simplify process { Automated simple readout { No special training or personnel r
Slide 24: FilmArray is an entire molecular laboratory in a palm-size pouch and small instrument
FilmArray® is an entire molecular laboratory in a palm-size pouch and small instrument 23
Slide 25: FilmArray is a simple-to-use, CLIA-moderate complexity system
FilmArray® is a simple-to-use, CLIA-moderate complexity system } Set it up in 2 minutes and get results in about an hour With FDA clearance of the revolutionary FilmArray® system, BioFire has set a new standard in molecular diagnostics of infectious diseases 24
Slide 26: The FDA-cleared FilmArray respiratory panel
The FDA-cleared FilmArray® respiratory panel } A respiratory tract infection could be the result of many viral or bacterial pathogens with symptoms that are nearly indistinguishable _ Necessary to improve diagnosis by testing for multiple viruses and bacteria } FilmArray® Respiratory Panel for 20
Slide 27: FilmArray can be used in a variety of diagnostics applications
FilmArray® can be used in a variety of diagnostics applications } The FilmArray® Blood Culture ID Panel (BCID) { To test positive aerobic blood cultures { For 24 pathogens and 3 antibiotic resistance genes associated with bloodstream infections { Potential: reducing the standard time required to
Slide 28: FilmArray competitive landscape
FilmArray® competitive landscape Product name FilmArray® Verigene® eSensor® xTAG® GeneXpert® Ease of use High Medium Low Low High Sample-to-answer ü No No No ü Complete panels ü ü ü ü No Hands on time 2 minutes 10-15 min. 55 minutes 45 minutes 2 minutes Total time-to-result 1 hour 2.5 hours 8
Slide 29: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition A Major Move Objectives and Conclusion
Slide 30: A deal fully aligned with our strategy of targeted acquisitions and partnerships
A deal fully aligned with our strategy of targeted acquisitions and partnerships } Since July 2011: 4 important milestones achieved { AES acquisition Reinforces our leadership in industrial applications { ARGENE acquisition Expands our infectious disease offering in molecular biology { Quanterix
Slide 31: FilmArray is a high medical value test
FilmArray® is a high medical value test } The FilmArray® test follows the same syndromic approach as the doctor } Medical value of the FilmArray® Respiratory Panel in the emergency room setting { Rapidly determine the cause of a febrile respiratory syndrome, whatever the agent { Quick and target
Slide 32: FilmArray: a complementary offer adding a new dimension to our infectious disease franchise
FilmArray®: a complementary offer adding a new dimension to our infectious disease franchise } Strategic objective: boost FilmArray® system sales and further develop its menu FilmArray®: the basis on which FilmArray®: a major, new dimension to successfully develop for our microbiology leadership ou
Slide 33: Other upsides
Other upsides } FilmArray® will benefit from bioMérieux’s strong commercial network { Strategic objective: make FilmArray® rapidly available to hospitals { In particular in the U.S: 4,800 additional hospitals could do rapid molecular testing } BioFire will benefit from bioMérieux’s capabilities
Slide 34: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition Financials Objectives and Conclusion
Slide 35: Purchase price
Purchase price } Purchase price: $450m, plus net existing financial debt { EV / Revenues (Dec-2014): 5.2x { Consistent with listed peers’ valuation and recent significant transactions in molecular diagnostics { Reflecting • FilmArray® growth momentum • BioFire’s operational excellence and expert
Slide 36: Sales growth and EBIT
Sales growth and EBIT } No significant impact on bioMérieux’s 2013 sales and EBIT* } Acquisition costs estimated at €6m, classified as non-recurring items } bioMérieux’s 2014 - 2017 financial statements { 2014 external sales growth: ∼ $80m (excl. royalty income), on a full-year basis { 2015 - 2
Slide 37: Overview
Overview Introduction First-Half 2013 Sales First-Half 2013 Financial Results BioFire Diagnostics Acquisition Objectives and Conclusion
Slide 38: An ambitious schedule in 2nd half
An ambitious schedule in 2nd half BioFire acquisition Finalization VIDAS® 3 Commercial launch in Europe CE-marked Preparation of the file for U.S. FDA approval Trade name announcement Preparation for CE-marking VirtuoTM launch New products 1st incubator Presentation to European laboratories installa
Slide 39: 2013 Objectives
2013 Objectives } 2013 An investment year 3 systems to be brought to market International expansion, particularly in emerging countries } 2013 sales growth objective between 3 - 5% at constant exchange rates and scope of consolidation } 2013 operating result between €255 - 270m before non-recurri
Slide 40: Conclusion: a resilient and attractive business model
Conclusion: a resilient and attractive business model } First-half 2013 performance in line with expectations { Solid sales in priority geographies { Stable results (operating & net) and cash generation (excl. Spain June 2012 extraordinary settlement) { VIDAS® 3 launched in Europe } Reservoirs
Slide 41: Appendices: BioFire Diagnostics Acquisition
Appendices BioFire Diagnostics Acquisition
Slide 42: Key dates in the development of bioMérieux
Key dates in the development of bioMérieux 1963 1973 1986 1988 1992 1996 1998 2001 2004 2006 2007 2008 2010 2011 2012 2013 50-year expertise in in vitro diagnostics 41
Slide 43: Reinforced focus on our key areas of specialization
Reinforced focus on our key areas of specialization } Innovation and strategic deals 25 new products 19 new products Launch of 3 innovative systems AES Genome Institute acquisition LOI* Quanterix BioFire ARGENE strategic acquisition acquisition partnership Strategy Investor Day confirmed 2nd half 2
Slide 44: bioMérieux's unique positioning
bioMérieux’s unique positioning } bioMérieux, a Group dedicated to in vitro diagnostics } Major specialization: infectious diseases { Infectious diseases represent ∼ 85%* of clinical application sales { 3 complementary core technologies First-half 2013 sales Microbiology Applications Microbiolog
Slide 45: BioFire: over 20 years of experience in PCR
: over 20 years of experience } A unique expertise in PCR* technology used in molecular diagnostics } PCR player of the first hour 1990 Air Thermocycler® { LightCycler®: 1st real time PCR instrument 1996 LightCycler® with Roche Diagnostics { R.A.P.I.D.® System: Developed with U.S. Air Force 1999
Slide 46: bioMérieux + BioFire: a specialized molecular diagnostic player with added value solutions
bioMérieux + BioFire: a specialized molecular diagnostic player with added value solutions } FilmArray® { Small footprint { Ease-of-use { Shorter time-to-result Highly centralized settings { Accuracy + Diagnostic testing } easyMAG® and ARGENE Specialist / decentralized settings { Modular, wor
Slide 47: BioFire Diagnostics: Financial outlook (in $ millions)
BioFire Diagnostics: Financial outlook (in $ millions) In $m 2013* As a % 2012 As a % % Change of sales of sales 2013 / 2012 FilmArray® sales 40 13 Other** 30 38 Total sales 70 100% 51 100% + 37% Gross profit 34 48% 26 51% + 31% Operating income Incl. R&D: before non- -7 - 10% -3 - 6% 2013 $18m recu