bioMerieux SA · EURONEXT:BIM
bioMerieux SA — H1 2010 Earnings Presentation
38 slides from bioMerieux SA's earnings presentation, Sep 6, 2010
Slide 1: bioMérieux 2010 First-Half Review
bioMérieux 2010 First-Half Review September 6, 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 2010 First-Half Performance 2010 First-Half Financial Results Objectives and Conclusion
Slide 4: Overview
Overview 2010 First-Half Performance 2010 First-Half Highlights 2010 First-Half Financial Results Objectives and Conclusion
Slide 5: First-half 2010: Solid performance in a challenging environment
First-half 2010: Solid performance in a challenging environment Growth in sales and earnings Sales €651m + 7.0%* including business development Operating income before non-recurring items €108m + 10.8% / 16.6% of sales Substantial growth opportunities… Clinical and industrial microbiology leadership
Slide 6: First-half 2010: Strong achievements
First-half 2010: Strong achievements Operational achievements Acquisitions of Meikang Biotech and Zenka - R&D + manufacturing capabilities in China Decision to stop VIDIA® to focus immunoassays team and resources on VIDAS® and POCT* Appointment of a new executive VP, North American Commercial Operat
Slide 7: 2010 first-half sales: Reflecting redistribution of economic growth
2010 first-half sales: Reflecting redistribution of economic growth North America: + 6.5%* EMEA**: + 2.7%* Steady in Western Europe 55% €651m 24% 13% + 6%* - Organic + 7% - Incl. Bus. Dev. 8% Latin America: + 10.2%* Asia-Pacific: + 18.8%* w/o H1N1 impact: + 22% 6 * Growth rates are like-for-like **
Slide 8: Sales by technology: good performance of clinical / industrial microbiology and VIDAS
Sales by technology: good performance of clinical / industrial microbiology and VIDAS® H1 2010 % Change Clinical Applications €551m + 5.5% Microbiology €330m + 8.0% Immunoassays €176m + 2.8%* Molecular Biology €36m + 0.5% Industrial Applications €100m + 8.9% TOTAL €651m + 6.0% * Including VIDAS®: +
Slide 9: Installed base
Installed base Installed base - number of instruments Analysis of first-half sales 57,500 55,700 53,100 Instruments 9.0% 10.1% Services and 5.1% 5.3% 49,200 Other 45,400 41,500 Reagents and Services Reagents 85.9% 84.6% + 5%* approx. 2005 2006 2007 2008 2009 First-half First-half First-half 2010 200
Slide 10: Overview
Overview 2010 First-Half Performance Emerging Countries 2010 First-Half Financial Results Objectives and Conclusion
Slide 11: Emerging countries: A significant growth driver
Emerging countries: A significant growth driver ~ 80%* of the world’s population IVD market: growing 10%* + annually Thriving economies Favorable demographic trends Long presence of bioMérieux 25% Focus on Emerging 7** €160m 12% of Group’s sales + 30% (like-for-like) excluding the H1N1 effect * Exce
Slide 12: China: A booming market
China: A booming market Overview Market: $1.5b, growing annually at 20% + 20,000 hospitals Healthcare security system funded mainly by government and households (who pay a high proportion) Opportunities A major healthcare spending program: $124b in 2009 - 2011 Minimum health insurance to cover 90% o
Slide 13: China: A booming market
China: A booming market bioMérieux in China - since 1991 bioMérieux China: sales growth Run rate FY 2010 net sales: €60m 32 % 24% 25% 19% More than 250 employees 6% 5 regional offices handling distributors and opening of 4 “SOHO*” in 2010 2006 2007 2008 2009 S1 2010 bioMérieux assets Automated ID/AS
Slide 14: India: A rapidly growing market
India: A rapidly growing market Overview Market: $0.3b, growing at 15% 40,000 laboratories: 6,000 automated or interested in automation Healthcare: 80% private (essentially cash market) Opportunities Large disparity in quality and services among laboratories High demand for automation, especially fo
Slide 15: India: A rapidly growing market
India: A rapidly growing market bioMérieux in India - since 1998 bioMérieux India: sales growth Run rate FY 2010 net sales: €20m 27% 31% 24% More than 100 employees 16% 10 % Headquarters in New Delhi and 6 regional offices 2006 2007 2008 2009 S1 2010 Active support to Sri Lanka, Bangladesh, Nepal an
Slide 16: Brazil: Increasingly promising market
Brazil: Increasingly promising market Overview Market: $0.7b, growing at 10% 3,000 main laboratories A national healthcare system, with private health insurance for about 20% + of the population Opportunities Still a small fraction of the population consuming IVD tests Large commercial lab chains wi
Slide 17: Brazil: Increasingly promising market
Brazil: Increasingly promising market bioMérieux in Brazil - since 1973 bioMérieux Brazil: sales growth Run rate FY 2010 net sales: €40m 22 % 13 % Around 150 employees 9% Headquarters in Rio de Janeiro -1% -4% 2006 2007 2008 2009 S1 2010 bioMérieux assets R&D and manufacturing capabilities A large p
Slide 18: Russia: Ongoing healthcare needs
Russia: Ongoing healthcare needs Overview Market: $0.3b, that should grow 2.5 x over the next 5 years 4,000 + main laboratories Russian constitution = right to free healthcare Opportunities New “national program” to improve healthcare Prevalence of tuberculosis, HIV infections and increasing proport
Slide 19: Overview
Overview 2010 First-Half Performance R&D Pipeline 2010 First-Half Financial Results Objectives and Conclusion
Slide 20: R&D: A strong pipeline of systems under development
R&D: A strong pipeline of systems under development New blood culture system Philips POCT device New systems under VIDAS® New development Mass spectrometry FMLATM-IT: MylaTM & VITEK® 2 5.01 BacT/ALERT® resin bottles New rapid tests manufactured in China Continuous development Molecular biology and t
Slide 21: Myla: Microbiology laboratory transformation
MylaTM Microbiology laboratory transformation Context Economic context and scarcity of skilled technicians Exigent regulatory compliance and patient care guidelines An ever more demanding healthcare environment: shorter time-to results,… bioMérieux’s answer: FMLATM and FMLATM-IT MylaTM, an innovativ
Slide 22: Mass spectrometry
Mass spectrometry MALDI-TOF* mass spectrometry Microbial identification (ID) by measuring the molecular mass of samples Advantages Limitations • Faster ID • MALDI-TOF does not deliver AST results • Broad ID menu • Expensive system • Cost-effective solution for large laboratories • U.S. FDA approval
Slide 23: VIDAS New: A major growth driver
VIDAS® New: A major growth driver Context VIDAS®: the small volume testing expert World’s largest installed base: > 24,000 VIDAS® and mini VIDAS® in clinical labs Extensive line of reagents with 91 clinical parameters Successful positioning • Routine tests: perfectly adapted to emerging markets and
Slide 24: Philips and bioMérieux: Diagnostic solutions for hospital-based point-of-care
Philips and bioMérieux: Diagnostic solutions for hospital-based point-of-care Context: in vitro diagnostics market moving toward POC testing Estimated long-term growth rate: 10% + bioMérieux and Philips’ answer Leveraging bioMérieux’s VIDAS® biology expertise and Philips’ engineering capabilities Ac
Slide 25: Blood culture: A new concept
Blood culture: A new concept Context Need for more automation to improve productivity and quality of results: FMLATM Need for faster results for microbiologists, clinicians and patients: Fast Microbiology BacT/ALERT® 3D • Most compact, modular and flexible blood culture system available • Wide range
Slide 26: Overview
Overview 2010 First-Half Performance 2010 First-Half Financial Results Objectives and Conclusion
Slide 27: Consolidated income statement
Consolidated income statement In € millions H1 2010 H1 2009 % Change Net sales 651 590 + 10.4%* Operating income + 10.8% before non-recurring items 108 97 As a % of sales 16.6% 16.5% Operating income 103 93 + 11.7% As a % of sales 15.9% 15.7% Net income 72 63 + 13.7% As a % of sales 11.1% 10.7% 26 *
Slide 28: Net sales
Net sales Business development Net sales Organic growth + €6 m Meikang Biotech Dima + €35m Currency effect + €20m €651m Net sales + 6% + 1% U.S. dollar: flat + 7% €590m Rise of other currencies + €61m + 10.4% H1 2009 H1 2010 27
Slide 29: Net sales
Net sales Business Organic development Net sales growth + €6 m + 1% + €37m Meikang Biotech Global ERP Dima Currency H1N1 North America effect - €5 m + €3 m + €20m €651m Net sales - 0.8% + 0.4% + 6.4% U.S. dollar: flat + 7% €590m Rise of other currencies + €61m + 10.4% H1 2009 H1 2010 28
Slide 30: Gross profit
Gross profit Other Gross profit Business Organic development growth + €2 m + €4 m Product mix Optimized COG – Increased royalty + €19m payments €342m Gross profit 52.5% of sales €317m Sales: + €35m x 53.7% 53.7% of sales + €25.2m + 8% H1 2009 H1 2010 29
Slide 31: Operating income before non-recurring items
Operating income before non-recurring items Gross profit SG&A Operating R&D income before - €8.4m Business dev. Royalties non-recurring Operating received items income before 25.7% of sales + €25.2m - €7.8m + €1.5m non-recurring (27% H1 2009) items 11.2% of sales (11.1% H1 2009) BD, BOOM®, Global ER
Slide 32: Net income
Net income Other Net financial expenses Operating income before non-recurring & associated income and expenses companies Income tax non-recurring items + €0.6m + €0.3m Net income - €2.7m 2010 Greek AR €4.4m Average income + €10.5m tax rate Boxtel €0.5m H1 2010: 29.6% Net income H1 2009: 30.1% 2009:
Slide 33: Cash flow statement
Cash flow statement In € millions H1 2010 H1 2009 Change EBITDA (1) 147 133 + 14 Income tax and financial expense (24) (29) +5 Operating working capital requirement (39) (34) -5 Capital expenditure (2) (50) (57) +7 Other (4) 16 - 20 Free cash flow 30 29 +1 Acquisition of shares (3) (16) 0 - 16 Divid
Slide 34: Summarized balance sheet
Summarized balance sheet Assets Liabilities Goodwill €189m (€167m) Instruments €71m (€68m) €910m Equity Other non-current (€806m) assets €458m (€401m) Operating WCR: 24.6% WCR €206m vs. 22.3% H1 2009 (€172m) Net debt: €14m (€2m) 33
Slide 35: Overview
Overview 2010 First-Half Performance 2010 First-Half Financial Results Objectives and Conclusion
Slide 36: 2010 Objectives
2010 Objectives In the current European market context 2010 organic* sales growth objective Around 6% a challenging comparison with Q3 ’09 2010 operating margin** objective 17%-18% * Growth in sales at constant exchange rates and scope of consolidation 35 ** Before non-recurring items, at constant e
Slide 37: Conclusion
Conclusion Ability to adapt to a changing environment Redistribution of economic growth around the world New technologies Emerging diseases (like NDM-1 bacteria today) - customers seek our expertise Strategic advances… Strengthened teams in high-growth emerging markets Solid R&D pipeline with key sy
Slide 38: bioMérieux 2010 First-Half Review
bioMérieux 2010 First-Half Review September 6, 2010