Investor Day MONDAY, OCTOBER 17
Milan
DISCLAIMER Save where otherwise indicated, the Company is the source of the content of this Presentation. Care has been taken to ensure that the facts stated in this Presentation are accurate, and that the opinions expressed are fair and reasonable. However, no representation or warranty, express or implied, is made or given by or on behalf of the Company, or the management or employees of Company as to the accuracy, completeness or fairness of the information or opinions contained in this Presentation. None of the Company, shall have any liability whatsoever (in negligence or otherwise) for any loss whatsoever arising from any use of this Presentation or its contents or otherwise arising in connection therewith. This Presentation is not intended for potential investors and does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to purchase or subscribe for, any securities of the Company, nor should it or any part of it or the fact of its distribution form the basis of, or be relied on in connection with, any contract or commitment whatsoever. This Presentation does not constitute a recommendation regarding the securities of the Company. This Presentation contains various forward-looking statements that reflect the Company’s management’s current views with respect to future events and financial and operational performance. The words “believe”, “expect”, “anticipate”, “intend”, “may”, “plan”, “estimate”, “should”, “could”, “aim”, “target”, “might”, or, in each case, their negative, or similar expressions identify certain of these forward-looking statements. Others can be identified from the context in which the statements are made. These forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases beyond the Company’s control and may cause actual results or performance to differ materially from those expressed or implied from such forward-looking statements. These risks include, but are not limited to, the Company’s ability to, operate profitably, maintain its competitive position, the Company’s ability to promote and improve its reputation and the awareness of the brands in its portfolio, the Company’s ability to operate its growth strategy successfully, the impact of changes in pricing policies, political and regulatory developments in the markets in which the Company operates, and other risks.
OPENING REMARKS Gustavo Denegri Chairman Carlo Rosa Chief Executive Officer
DIASORIN: RIDING A NEW BUSINESS WAVE • COMPANY PROPOSITION AS A SPECIALTY PLAYER IN THE DIAGNOSTIC BUSINESS
• NEW R&D PIPELINE IN BOTH LARGE CONSOLIDATED MARKETS (e.g. IDs) OR MID-SIZE SPECIALTY CLINICAL AREAS (e.g. GI INFECTIONS, CKD)
• TECHNOLOGICAL SHIFT FROM ELISA TO CLIA LEVERAGING ON AVAILABLE KNOW HOW AND MATERIAL
• MOLECULAR PRODUCTS TO COMPLEMENT AND SUPPORT IMMUNOASSAY OFFERING
• WORLDWIDE GEOGRAPHICAL EXPANSION • KEY M&A ACQUISITIONS TO PROVIDE MORE SPECIALTY PRODUCTS OR BRAND RECOGNITION
• MANAGING VITAMIN D LEADERSHIP POSITION
2012-2015
2000-2011
• LEADERSHIP POSITION IN VITAMIN D TESTING
• FURTHER GEOGRAPHICAL EXPANSION
DIASORIN CONTINUING TO GENERATE REVENUE GROWTH, CASH GENERATION AND A STRONG BALANCE SHEET
DIASORIN HISTORY 1968
DiaSorin’s birth as division of Sorin Biomedica SpA
1970-1985
Development of products portfolio with RIA and ELISA technologies
1986-1999
2000-2006
Acquisition of Byk Sangtec and rights to LIAISON® platform Start of conversion from ELISA to CLIA technology Commercial presence strengthened (new branches in Mexico, Israel and China) R&D focused on Liaison® products portfolio expansion: i) families of reagents and ii) “specialty” reagents
Investment in Molecular Diagnostics: licensing agreement with Eiken Chemical Co. Ltd. for use of LAMP technology Worldwide expansion and consolidation (Portugal, Austria, Czech Republic, Canada, Australia, Ireland, South Africa, Netherlands) Acquisition of Biotrin, strengthening leadership position as “specialist” in IVD market Acquisition of Murex® product line, entering blood bank market Launch of new Liaison® XL system platform DiaSorin promoted to Italian Stock Exchange Index “FTSE MIB”
Today
Liaison® XL meeting needs of large laboratories, and consolidating/expanding DiaSorin commercial presence Murex® product line, playing an important role in blood-bank market Development of new technologies (Molecular Diagnostics) to renew current product line Product line expansion, focusing on specialized segments: Infectious and Autoimmune Diseases, Endocrinology
HISTORY OF GROWTH AND VALUE AS DIAGNOSTIC SPECIALIST, BASED ON CONTINUOUS INNOVATION, TOP-QUALITY PRODUCTS AND LONG-STANDING COMMITMENT TO THE CLIENTS NEEDS
EXTERNAL ACQUISITIONS
2007-2010
STRONG FINANCIAL PERFORMANCE
July 19, 2007: Stock market debut in the Italian Stock Exchange “STAR” segment
COMMERCIAL EXPANSION WORLDWIDE
2007
BIOCHEMISTRY INTEGRATED WITH AUTOMATED MACHINES
Management Buyout, backed by Investimenti e Partecipazioni SpA and other financial and industrial investors
MANAGEMENT CONVICTION AND COMMITMENT TO RESULTS
2000
TECHNOLOGICAL DEVELOPMENT AND PRODUCTS MENU EXPANSION
Sorin Biomedica acquires control of Incstar Inc. (US company in the In Vitro Diagnostics market), divests IVD activities in a separate company “DiaSorin Srl”, and sells it to American Standard Inc.
DIASORIN WORLDWIDE PRESENCE
28 1,500 EMPLOYEES
INDUSTRIAL SITES
6
RESEARCH FACILITIES
2 >80
SALUGGIA, GERENZANO* DUBLIN DARTFORD DIETZENBACH
AUSTRIA BENELUX CZECH REPUBLIC FRANCE FINLAND GERMANY IRELAND
AMERICAS
USA
STILLWATER
BRAZIL CANADA
SOUTH AFRICA
KYALAMI
ITALY IRELAND UK GERMANY * RESEARCH CENTER
APAC
COMPANIES WORLDWIDE
SUBSIDIARIES
AFRICA
EUROPE AND MIDDLE EAST
INDUSTRIAL SITES
ISRAEL ITALY PORTUGAL SPAIN SWEDEN NORWAY UK
DISTRIBUTORS BOSNIA AND HERZEGOVINA CROATIA CYPRUS DENMARK ESTONIA GREECE HUNGARY JORDAN KUWAIT LATVIA LEBANON
LITHUANIA POLAND ROMANIA RUSSIAN FEDERATION SAUDI ARABIA SLOVAKIA SLOVENIA SWITZERLAND TURKEY UNITED ARAB EMIRATES UKRAINE YUGOSLAVIA
ARGENTINA BOLIVIA CHILE COLOMBIA COSTA RICA DOMINICAN REPUBLIC ECUADOR HAITI
HONDURAS MEXICO PANAMA PARAGUAY PERU PUERTO RICO URUGUAY VENEZUELA
SOUTH AFRICA
ALGERIA EGYPT
TUNISIA
CHINA AUSTRALIA
BANGLADESH INDIA INDONESIA JAPAN KOREA REPUBLIC MALAYSIA MONGOLIA
PAKISTAN PHILIPPINES SINGAPORE TAIWAN THAILAND VIETNAM
MEXICO USA
INDEPENDENT DISTRIBUTORS GROUP PRESENCE IN
>60 COUNTRIES
MARKETS ADDRESSED DIRECTLY AND THROUGH LONG-TERM CONTRACTS WITH MAJOR DISTRIBUTORS
IN VITRO DIAGNOSTIC (IVD) MARKET EACH SEGMENT OF THE IVD MARKET DIFFERS FOR: • Assay technology • Assay automation • Personnel responsibility • Regulatory complexity • Location of the lab in the hospital
CLINICAL CHEMISTRY 21%
IMMUNOASSAY
General markers (Enzymes, electrolytes, etc)
Infectious immunology Hepatitis and HIV testing Immunochemistry All sort of viral disease testing
MICROBIOLOGY Testing for live microrganisms (bacteria, protozoa, etc)
23% 6% 6% 6%
21%
SELF-MONITORING BLOOD GLUCOSE OTHERS
9% 9%
MOLECULAR DIAGNOSTICS Testing for genetic disorders
POINT OF CARE HEMATOLOGY
Includes all blood cells testing
MARKET REQUIRING HIGH LEVEL OF SPECIALTY IN EACH SEGMENT, IMPLYING A BIG MARKET FRAGMENTATION
IMMUNOASSAY CLINICAL AREAS DIASORIN AIMS TO PLAY AN IMPORTANT ROLE IN A € 7BN MARKET AS AT 2010 BY COMBINING A DIFFERENT STRATEGY APPROACH FOR EVERY CLINICAL AREA IN THE IMMUNOASSAY MARKET
AUTOIMMUNITY BONE & MINERAL
ALLERGY 9.3%
INFECTIOUS DISEASE
GI STOOL TESTING
6.4% 5.7% 4.3%
12.1%
DRUG MONITORING & OTHERS
3.6%
CARDIAC MARKERS 12.9%
25.7%
ONCOLOGY & ENDOCRINOLOGY
20.0%
HEPATITIS AND RETROVAIRUSES
DIASORIN READY TO INCREASE ITS OFFERING AND COMPETITIVE POSITION IN THE IMMUNOASSAY MARKET
IN VITRO DIAGNOSTIC (IVD) MARKET IVD TESTS ARE MEDICAL DEVICES, PERFORMING DIAGNOSES FROM ASSAYS IN A TEST TUBE, OR IN A CONTROLLED ENVIRONMENT OUTSIDE A LIVING ORGANISM REAGENTS INSTRUMENTS CONTROLS
BLOOD EXAMINING SPECIMENS
TISSUES
PHYSIOLOGICAL/PATHOLOGICAL STATE SAFETY BLOOD SUPPLY
PROVIDING INFORMATION ON
COMPATIBILITY BETWEEN DONOR/RECIPIENT
STOOL AND URINE
GENETIC TESTING THERAPEUTIC TREATMENT
END-USERS
PRODUCT USES
HOSPITAL LABORATORY
CLINICAL DIAGNOSTIC
BLOOD BANKS
CENTRALIZED DIAGNOSTICS
COMMERCIAL ANALYSIS LABORATORY
MOLECULAR DIAGNOSTICS AND GENETICS
RESEARCH PHARMA INDUSTRY
BASIC RESEARCH
RESEARCH LABORATORY
SPECIALIZED CLINIC
PATIENTS IVD MARKET: PURPOSES & END-USERS
MASS CONSUMPTION
SELF TESTING
PHYSICIANS
GROWTH POTENTIAL FOR IVD MARKET
DEMOGRAPHICS
Ageing population drives increased diagnostics demand Prevalence and incidence increase of certain diseases
FOCUS ON PREVENTION AND DIAGNOSIS
Increasing focus by government and other third party payers on diagnostic testing as a mean to decrease healthcare costs, given clear cost benefits
EVIDENCE BASED MEDICINE
Increased focus by physicians on evidence based medicine, due to cost and potential side-effects of many treatments
EMERGING MARKETS GROWTH
Higher lifestyle standards drive a higher demand of diagnostics in emerging markets and represent an hedge against economic weakness in mature markets
IVD: SUSTAINABLE GROWTH IN A VALUE MARKET
IMMUNOASSAY TECHNOLOGIES
FEATURES TRACER TECHNOLOGY
AUTOMATION LEVEL OF INTERVENTION REQUIRED
EVIDENCE
TECHNOLOGY BASED FLEXIBILITY
MEDICINE
TIME TO 1ST RESULT TEST FORMAT
RIA
ELISA
CLIA
RADIO IMMUNO ASSAY
ENZYME LINKED IMMUNOSORBENT ASSAY
CHEMILUMINESCENT IMMUNO ASSAY
RADIOACTIVE
NON-RADIOACTIVE COLORIMETRIC
LUMINESCENT MOLECULAR
N/A
BATCH PLATE ANALYZERS
CLOSED/DEDICATED ANALYZERS
MANUAL OPERATION BY EXPERT TECHNICIANS
SIGNIFICANT INTERVENTION BY QUALIFIED LABORATORY PERSONNEL
INTERVENTION LIMITED TO LOAD KITS
TESTS THAT CANNOT BE CARRIED OUT USING MORE MODERN TECHNOLOGIES
OPEN SYSTEM ELISA KITS FROM DIFFERENT PRODUCERS CAN BE USED ON THE SAME ANALYZER
CLOSED SYSTEM
3-12 HOURS
3-4 HOURS
30 MINUTES
BATCH
BATCH
RANDOM ACCESS
DIASORIN MANAGING ALL DIFFERENT IMMUNOASSAY TECHNOLOGIES
M&A TARGET
2002
BYK SANGTEC (IVD BUSINESS DIVISION)
SELLER
ALTANA AG
STRATEGY AND INVESTMENT RATIONALE
RIGHTS TO LIAISON® PLATFORM INTEGRATION BETWEEN BIOCHEMISTRY AND AUTOMATIZATION
EFFECTS ON BUSINESS
COMMERCIAL EXPANSION
TECHNOLOGICAL AREA
CLIA
PRODUCTS MENU EXPANSION COMPANY BRAND ENHANCEMENT
2003
2008
MOLECULAR DIAGNOSTICS (MDX)
GAMIDA SENSE LTD.
ASSET IN MOLECULAR DIAGNOSTICS
KNOW-HOW
NUCLEIC ACID TESTING (NAT)
BIOTRIN INTERNATIONAL LTD
DR SCHMIDT BIOTECH GMBH
LEADERSHIP POSITION STRENGTHENING AS A “SPECIALIST” IN IVD MARKET NEW GEOGRAPHICAL AREAS
CRITICAL MASS IN STRATEGIC AREAS (APAC & LATAM)
ELISA
MUREX PRODUCT LINE
ABBOTT LABORATORIES LTD
MUREX® PRODUCT LINE SUPPORTING LIAISON XL LAUNCH ENTRANCE IN BLOOD BANK MARKET THROUGH MUREX KNOW-HOW AND REPUTATION IN HCV-HIV SEGMENT
DIASORIN BECOMING 2ND MAIN MANUFACTURER OF ELISA IN THE WORLD MUREX SALES IN LATAM & APAC INCREASING DIASORIN CRIMCAL MASS IN UNDERPENETRATED AREAS
ELISA CLIA
2010
Technologies
Menu Expansion
COMPANY’S GROWTH GRANTED BY KEY ACQUISITIONS
CLIA
PARTNERSHIPS TARGET
PARTNER
STRATEGY AND INVESTMENT RATIONALE
EFFECTS ON BUSINESS
TECHNOLOGICAL AREA
LIAISON XL
STRATEC BIOMEDICAL SYSTEMS AG
DEVELOPMENT OF NEW FRONT-LINE INSTRUMENT: LIAISON XL
CLIENTS BASE ENLARGEMENT
CLIA
LAMP TECHNOLOGY
EIKEN CHEMICAL CO. LTD.
INVESTMENT IN MOALECULAR DIAGNOSTICS: LICENSING AGREEMENT FOR USE OF LAMP TECHNOLOGY
LICENSING AGREEMENT
NUCLEIC ACID TESTING (NAT)
LIAISON IAM
PRECISION SYSTEM SCIENCE CO. LTD (PSS)
DEVELOPMENT OF NAT ANALYZER (LIAISON IAM) TO ENTER MOLECULAR DIAGNOSTICS MARKET MARKET SYNERGIES WITH BIOTRIN BUSINESS
COMPANY BRAND AND PRODUCTS ENHANCEMENT IN SPECIALTY CLINICAL AREAS
NUCLEIC ACID TESTING (NAT)
HBsAg
ADVANCED LIFE SCIENCE INSTITUTE INC. (ALSI)
DEVELOPMENT OF NEW HIGHLY SENSITIVE TEST FOR HEPATITIS B VIRUS POSITIONING AS “SPECIALIST” IN INFECTIOUS DISEASES AREA
DEVELOPMENT AND LICENSING AGREEMENT
CLIA
2011
WORLDWIDE DISTRIBUTION
SONIC HEALTHCARE GROUP
LONG-TERM WORLDWIDE INCENTIVE AGREEMENT TO USAGE OF DIASORIN PRODUCTS IN SONIC HEALTHCARE LABORATORIES
LICENSING AGREEMENT GEOGRAPHICAL EXPANSION COMPANY BRAND AND STABILITY ENHANCEMENT
CLIA
2011
VITAMIN D LIAISON XL
LABORATORY CORPORATION OF AMERICA HOLDINGS (LABCORP)
US NETWORK STABILITY INCREASE GROWTH AND BRAND AWARENESS IN LARGE COMMERCIAL LABORATORIES
5 YEAR SUPPLY AGREEMENT GROWTH IN THE US MARKET
CLIA
VITAMIN D
CARDINAL HEALTH INC.
US NETWORK STABILITY INCREASE GROWTH AND BRAND AWARENESS IN LARGE COMMERCIAL LABORATORIES
EXCLUSIVE DISTRIBUTION AGREEMENT GROWTH IN THE US MARKET
ELISA
2005
2011
2011
2008
2011 Technologies
LIAISON XL
Menu Expansion
CLIA
Commercial Partnerships
COMPANY’S GROWTH GRANTED BY A COMBINATION OF INTERNAL R&D AND COMMERCIAL/LICENSING AGREEMENTS
R&D AND INNOVATION Francesco Colotta Senior Corporate VP and Chief Medical Officer
IN VITRO DIAGNOSTICS: BASICS
IN VITRO DIAGNOSTICS
DETECTION IN BIOLOGICAL FLUIDS...
...OF A “MOLECULE”...
...“RELATED” TO A DISEASE
E.G.
BLOOD, URINE, CSF,…
E.G.
PROTEINS
NUCLEIC ACIDS
SMALL MOLECULES
IMMUNODIAGNOSTICS
MOLECULAR DIAGNOSTICS
CLINICAL CHEMISTRY
DETECTION BY ANTIBODIES…
DETECTION BY DNA…
…BY A LIGHT-EMITTING MOLECULE
…BY A FLUORESCENCE-EMITTING MOLECULE
DETECTION BY CHEMICAL REACTIONS
INFECTIOUS DISEASES
INFECTIOUS DISEASES
ELECTROLYTES
ONCOLOGY
ONCOLOGY
GLUCOSE
HORMONOLOGY
OTHERS
CHOLESTEROL
AUTOIMMUNITY
HEPATIC ENZYMES
CARDIOLOGY
OTHERS
FERTILITY THYROID THE BASICS OF DIASORIN MARKET
AREAS TO BE A FRONT RUNNER IN LAB TESTING • STRENGTHEN OUR LEADERSHIP IN IMMUNOASSAY • BECOME A NEW PLAYER IN MOLECULAR DIAGNOSTIC
IMMUNODIAGNOSTICS
MOLECULAR DIAGNOSTICS
DETECTION BY ANTIBODIES…
DETECTION BY DNA…
…BY A LIGHT-EMITTING MOLECULE
…BY A FLUORESCENCE-EMITTING MOLECULE BLOOD BANKS INFECTIOUS DISEASES
INFECTIOUS DISEASES
INFECTIOUS DISEASES SPECIALTIES
GI TRACT ONCOLOGY
ONCOLOGY HYPERTENSION
ONCO-HEMATOLOGY SPECIALTIES
HORMONOLOGY CHRONIC KIDNEY DISEASE
OTHERS
AUTOIMMUNITY CARDIOLOGY FERTILITY THYROID
R&D STRATEGY BASED ON 2 LEGS: LEADERSHIP ON IMMUNOASSAY + MOLECULAR DIAGNOSTIC ENTRANCE
BLOOD BANKS DEVELOPMENT PROGRAM LEVERAGE DIASORIN EXPERIENCE AND REPUTATION IN IDS
LEVERAGE DIASORIN FULL MENU AVAILABILITY T. pallidum HBsAg
HTLV I-II
HCV
Chagas
HIV
HIV HT
LIAISON XL
In development DIASORIN LEVERAGING EXPERIENCE, REPUTATION, FULL MENU AVAILABILITY, LIAISON XL
BLOOD BANKS
NEW AUTOMATED SYSTEM IN STOOL TESTING SET UP OF OPTIMAL ASSAY CONDITIONS WITH LIAISON AND LIAISON XL
COMPANION ONE-STEP SIMPLE SAMPLE PREPARATION DEVICE
GI INFECTIONS C. DIFFICILE TOXINS A&B
ENTEROHEMORRAGIC E. COLI
C. DIFFICILE GDH
ROTAVIRUS
H. PYLORI
ADENOVIRUS
GI INFLAMMATORY/AUTOIMMUNE DISEASES CALPROTECTIN LACTOFERRIN LIPASE
FECAL OCCULT BLOOD
LIAISON 庐 STOOL CLEAN-UP DEVICE
DEVELOP AN INNOVATIVE IMMUNODIAGNOSTIC CHEMILUMINESCENT SYSTEM CHARACTERIZED BY: 路 BIOLOGICAL MATRIX CURRENTLY POORLY AUTOMATED 路 WIDE APPLICABILITY 路 INTEGRABLE WITH MOLECULAR DIAGNOSTICS A NEW AUTOMATED SYSTEM IN STOOL TESTING; DIASORIN DRIVING THE MARKET
LEVERAGE ON BONE METABOLISM FRANCHISE CHRONIC KIDNEY DISEASE (CKD) AND BONE METABOLISM CKD
BONE MASS LOSS
HIGH BONE TURNOVER (INCREASED REABSORPTION)
LOW BONE TURNOVER (REDUCED FORMATION)
HYPERPHOSPHATEMIA
FGF-23
HYPERPHOSPHATEMIA
FGF-23
REDUCED 1,25 VITD
1,25 VITD SPECIFIC ASSAY
REDUCED 1,25 VITD
1,25 VITD SPECIFIC ASSAY
HIGH SCLEROSTIN
SCLEROSTIN ASSAY
ENLARGEMENT OF BONE METABOLISM FRANCHISE
HYPERTENSION: A FULL PANEL ON LIAISON SYSTEMS DIASORIN MENU: A UNIQUE OFFER FOR THE DETECTION OF THE KEY HYPERTENSION MARKERS ON A FULLY AUTOMATED PLATFORM DIFFERENT “TYPES” OF HYPERTENSION RENOVASCULAR HYPERTENSION RENIN-SECRETING TUMORS HIGH RENIN ESSENTIAL HYPERTENSION LOW RENIN ESSENTIAL HYPERTENSION PHEOCHROMOCYTOMA PRIMARY ALDOSTERONISM DRUGS-INDUCED HYPERTENSION
Renin and aldosterone are differentially expressed in each specific hypertension-inducing condition
To discriminate which h clinical l l condition is inducing hypertension in the patient, both RENIN and ALDOSTERONE must be measured UNIQUE OFFER OF AUTOMATED DETECTION OF THE TWO KEY MARKERS OF HYPERTENSION ON LIAISON
DIASORIN IN THE MOLECULAR DIAGNOSTICS
DIASORIN STRATEGY TO PLAY THE MOLECULAR DIAGNOSTIC MARKET
THE 3 KEY DECISIONS
AMPLIFICATION TECHNOLOGY
LAMP
AUTOMATED NA AMPLIFICATION AND DETECTION INSTRUMENT
NAT MENU
LIAISON IAM
INFECTIOUS DISEASES AND ONCOHEMATOLOGY TESTS
3 DECISIONS, 1 WINNING STRATEGY IN MOLECULAR DIAGNOSTICS
LAMP TO DEVELOP A SPECIALTY MENU IN NAT DIASORIN LICENSED LAMP (LOOP-MEDIATED ISOTHERMAL AMPLIFICATION) TECHNOLOGY FROM EIKEN CHEMICAL COMPANY LTD IN 2008: THE DIFFERENTIATION FACTOR IN ONCO-HEMATOLOGY FUTURE MENU
DIASORIN LAMP grants: HIGHER SENSITIVITY HIGHER SPECIFICITY SIMPLER REACTION SET-UP SHORTER TIME-TO-RESULT CHEAPER PRICE
LAMP: THE DIFFERENTIATION FACTOR IN THE DIASORIN MOLECULAR DIAGNOSTIC STRATEGY
LIAISON IAM: A SMALL AUTOMATED ANALYZER DIASORIN SIGNED AN AGREEMENT WITH PRECISION SYSTEM SCIENCE CO. LTD OF JAPAN (PSS) FOR THE DEVELOPMENT OF A NUCLEIC ACID TEST (NAT) ANALYZER
CLIENTS S
DIASORIN MICROBIOLOGY CUSTOMERS DIASORIN SPECIALITIES SEROLOGY CUSTOMERS CUSTOMERS ALREADY USING VALIDATED EXTRACTION METHOD
FEATURES
Liaison Instant Amplification Molecular (IAM)
• SMALL: BENCH TOP, 150(w) X 300(h) X 300(d), <6kg • FAST: REAL TIME; ONE RUN <60MIN. • PRECISE: FLUORESCENCE QUANTITATION • FLEXIBLE: • THROUGHPUT: FROM 1 TO 8 REACTIONS/INSTRUMENT; UP TO 48 REACTIONS (WITH 6 INSTRUMENTS) • RANDOM ACCESS: BY USING DIFFERENT INSTRUMENTS • MULTIPLEX CAPABILITY: 3 FLUORESCENT DYES • DIFFERENT ASSAYS CAN BE PERFORMED IN THE SAME RUN • FULL TRACEABILITY: BAR CODE READER USE FOR SAMPLER AND REAGENTS • CONNECTIVITY: TO LIS • CLOSED SYSTEM: FOR ONLY ISOTHERMAL LAMP REACTION • LOW RISK OF CONTAMINATION: PLASTIC STRIP CAN’T BE RE-OPENED AFTER CLOSURE • EASY TO USE: INTUITIVE SOFTWARE
DIASORIN DEVELOPING ITS NAT ANALYZER, FOCUSED ON SPECIALTY TESTS
NAT MENU: FOCUS ON SPECIALTIES
LEVERAGE DIASORIN EXPERIENCE AND REPUTATION IN INFECTIOUS DISEASES
PROVIDE THE SPECIALIST WITH A COMPLETE PANEL
INFECTIOUS DISEASES SPECIALTIES
ONCO-HEMATOLOGY SPECIALTIES
EPSTEIN–BARR VIRUS (EBV)
MYELOPROLIFERATIVE NEOPLASMS (MYELO NEOPL)
CYTOMEGALOVIRUS (CMV)
ACUTE LYMPHOBLASTIC LEUKEMIAM (ALL)
PARVOVIRUS (PARVO)
ACUTE MYELOID LEUKEMIA (AML)
TOXOPLASMOSIS (TOXO)
ACUTE PROMYELOCITIC LEUKEMIA (APL)
BK VIRUS (BKV)
CHRONIC MYELOID LEUKEMIA (CML)
VARICELLA ZOSTER VIRUS (VZV)
DIASORIN MOLECULAR DIAGNOSTICS MENU: CONTENT IS ALWAYS THE KEY DRIVER IN OUR BUSINESS
LAS CONFIGURATION AND LIAISON XL LAS BRINGS LIAISON XL INTO THE MOST ADVANCED, HIGH THROUGHPUT AND AUTOMATED DIAGNOSTIC LABS, TO FULFILL FLEXIBILITY AND EFFICIENCY OF THE NEW ANALYZER
DEVELOPMENT PLAN: • UPGRADE SW AND HW TO INTEGRATE LIAISON XL INTO AUTOMATED PATIENT SAMPLE PROCESSING: LABORATORY AUTOMATION SYSTEM (LAS) • PROTOTYPE SW AND HW READY LIAISON XL READY FOR LAS CONFIGURATION
DIASORIN: R&D PIPELINE 2011 - 2015 LEVERAGE DIASORIN EXPERIENCE AND REPUTATION IN IDS
INFECTIOUS DISEASES
DEVELOP AN INNOVATIVE IMMUNODIAGNOSTIC CHEMILUMINESCENT PLATFORM CHARACTERIZED BY: 路 BIOLOGICAL MATRIX CURRENTLY POORLY AUTOMATED 路 WIDE APPLICABILITY 路 INTEGRABLE WITH MOLECULAR DIAGNOSTICS
IMMUNOASSAY
EXPLOIT DIASORIN WORLD LEADERSHIP IN VIT D TESTING AND BONE METABOLISM
BLOOD BANK K HTLV I-II
CHAGAS
HIV - HT
AUTOMATED STOOL TESTING C. DIFFICILE ROTAVIRUS
H. PYLORI ADENOVIRUS ADENO OVIRUS O V
CALPROTECTIN LACTOFERRIN
ENTER E. COLI LIPASE
FECAL OCCULT BLOOD
BONE O & MINERAL FGF-23
1,25 VITD
SCLEROSTIN
HORMONOLOGY HYPERTENSION N
UNIQUE OFFER TO DETECT KEY HYPERTENSION MARKERS ON FULLY AUTOMATED PLATFORM
ALDOSTERONE
INFECTIOUS DISEASES MOLECULAR DIAGNOSTICS
LAMP ANALYZER
FOCUS ON SPECIALTY
EBV
PARVO
TOXO
BKV
CMV
VZV
ONCO HEMATOLOGY MYELO NEOPLL
ALL A LL
APL
SYSTEM
AML CML
LIAISON XL LAS CONFIGURATION
AN IMPORTANT R&D PIPELINE TO ADDRESS OPPORTUNITIES AND ENFORCE OUR RECOGNITION AS THE DIAGNOSTIC SPECIALIST
MARKETS AND SALES Chen Even
Senior Corporate VP Commercial Operations
DIASORIN IN THE 造 7BN IMMUNOASSAYS SEGMENT
OUT OF A WW IVD MARKET OF 造 33BN, DIASORIN MAIN FOCUS IS IMMUNOASSAY
IMMUNO ASSAYS
OUT OF A WW IMMUNOASSAY MARKET OF 造 7BN, DIASORIN MAIN CLINICAL AREAS OF INTEREST ARE: INFECTIOUS DISEASE
造 7BN
DRUG MONITORING OTHER GI STOOL TESTING 250 300 ONCOLOGY ALLERGY & ENDOCRINOLOGY 400 AUTOIMMUNITY
450
1,800
HEPATITIS AND RETROVIRUSES GI STOOL TESTING
BONE & MINERAL
ONCOLOGY AND ENDOCRINOLOGY BONE AND MINERAL
650 1,400
850 INFECTIOUS DISEASE
HEPATITIS AND RETROVIRUSES
900 CARDIAC MARKERS
DIASORIN AS A PURE PLAYER IN IMMUNOASSAY FOCUSING ON SPECIFIC AREAS
INFECTIOUS DISEASE (ex Heps & Retrovirus) MARKET
MARKET PLAYERS
WW: ¤ 850MLN TRENDS ID growing WW following demographics at 3-5% in the US and LatAm and >10% in China PRICING Price pressure due increasing competition
LATAM
150
NORTH AMERICA
250
200
to
APAC
250
MARKET SHARE DIASORIN: ABBOTT: BIOMÉRIEUX: SIEMENS: ROCHE: OTHERS:
SIEMENS 10% 25% 15% 10% 10% 30%
30%
10%
OTHERS
10%
ROCHE
25%
10% DIASORIN
15% A ABBOTT
BIOMERI BIOMERIEUX RIEUX RIE EUROPE
DIASORIN PURPOSE AND STRATEGY ¤ 60-70MLN ADDITIONAL REVENUES
STRATEGY: NEW SYSTEM LIAISON XL FRONT LINE ANALYZER AND LAS VERSION TO: • ACCESS MID-LARGE CLINICAL LABS • ACCELERATE PLATE CONVERSION
EU
USA AND LATAM Increased penetration with >10-15% MKT Share
• CONSOLIDATE ID BROAD ID MENU WITH HOOKS: • PARVOVIRUS • MMRV PANEL IN THE US • MYCOPLASMA
16%
Leadership reinforced with >30% MKT Share
CHINA Torch leadership on CLIA Platform
14% MARKET SHARE %
PURPOSE:
DIASORIN POSITIONING
12%
75%
G
WT RO
H
10% 8% 6%
10%
15%
4% 2% 0% 2011E
2015E Market Growth estimated at 5% CAGR
DIASORIN TO REINFORCE ITS ID LEADERSHIP POSITION, LEVERAGING ON INSTALLED BASE
HEPATITIS & RETROVIRUS MARKET WW: 造 1.5BN WW ex US, 造 750MLN
MARKET PLAYERS LATAM MARKET SHARE
USA ex
JAPAN:
TRENDS Growing volumes due to demographics, patients access to testing and urbanization in emerging markets PRICING Price erosion for HCV due to patent expiration
500
450
EUROPE EUROP PE P E
200
350
DIASORIN: ABBOTT: A SIEMENS: ROCHE: J&J: OTHERS:
5% 40% 15% 15% 15% 10%
DIASORIN
ROCHE
LEVERAGE THE MUREX BRAND
15%
1 15%
14% 12% MARKET SHARE %
LARGE INSTALLED BASE IN KEY EU MARKETS (>2,000) IN CLINICAL LABS
40%
J&J
DIASORIN POSITIONING
STRATEGY: LEVERAGE ON ID
FULL MENU: INCLUDING HCV, HBV, HIV, HTLV, SYPHILIS, AND CHAGAS ON LIAISON XL
10%
SIEMENS S
造 40-50MLN ADDITIONAL REVENUES
NEW SYSTEM: LIAISON XL FRONT LINE ANALYZER, TO ACCESS MID-LARGE LABS SEGMENT
5%
15%
APAC
DIASORIN PURPOSE AND STRATEGY PURPOSE:
ABBOTT
OTHERS
>55
10%
%
T OW R G
H
8% 6%
5%
4%
8%
8% 12%
2% 0%
DIFFERENTIATION: HBsAg WITH ENHANCED DETECTION OF MUTANTS ON LIAISON XL
DIASORIN AS A RELIABLE ALTERNATIVE TO THE MARKET LEADER
2011E 2011 01111E E
2015E 20 2015 015 015 5 5E Market Growth estimated at 2% CAGR
TOT MKT T
TOT MKT ex US, EX JAPAN
GI STOOL TESTING MARKET WW: ~ 造 300MLN EUROPE: 造 90MLN TRENDS
CAGR at +10-15% Increasing incidence of C. Difficile (hospital acquired infections) Low penetrated H. Pylori prevalence (Stomach Ulcers)
MARKET PLAYERS EUROPE
ROW
90 60
MERIDIAN
MARKET SHARE MERIDIAN:
30%
30%
OTHER SMALL-MEDIUM PLAYERS: 70%
150
Market size not attractive to big IVD players
70%
PRICING
Premium prices
OTHERS
USA
PURPOSE: 造 15-20MLN ADDITIONAL REVENUES STRATEGY: FIRST TO OFFER A GI STOOL PANEL ON A FULLY AUTOMATED PLATFORM USING MERIDIAN TECHNOLOGY LEVERAGE ON DIASORIN ID BUSINESS AGREEMENT WITH MERIDIAN TO CO-DEVELOP HIGH QUALITY STOOL PANEL TO BE MARKETED WW ex US MENU AVAILABLE ON LIAISON AND LIAISON XL TO GROW AND ANCHOR THE ID BUSINESS
DIASORIN POSITIONING DIASORIN WW MKT SHARE IN 2015 EXPECTED ~ 4%
4.0% 3.5% MARKET SHARE %
DIASORIN PURPOSE AND STRATEGY
3.0% 2.5% 2.0% 1.5%
0%
0.5% 0% 2011E
LEVERAGE ON ID BUSINESS
DIASORIN PIONEERING GI STOOL TESTING AUTOMATION
4%
1.0%
2015E Market Growth estimated at 12% CAGR
ONCOLOGY / ENDOCRINOLOGY MARKET
MARKET PLAYERS EUROPE
APAC
350
ID increase in volume due to higher prevalence, population ageing and promotion of urban lifestyle
700 250 2 50
PRICING
DIASORIN: ROCHE: SIEMENS: ABBOTT: OTHERS:
OTHERS
18%
> 2% 35% 25% 20% ~ 18%
ROCHE
35%
2% 20% % 25%
500
Low and stable in high routine Specialties high priced
MARKET SHARE
A LA ATAM LATAM
NORTH O AMERICA
DIASORIN PURPOSE AND STRATEGY PURPOSE:
造 30-40MLN ADDITIONAL REVENUES
STRATEGY:
NEW SYSTEM LIAISON XL FRONT LINE ANALYZER AND LAS VERSION ALLOWING TO ENTER IN MID-LARGE SIZE LABS FULL MENU AVAILABLE ENDO SPECIALTIES, SUCH AS RENIN AND ALDOSTERONE (HYPERTENSION) TO REINFORCE SPECIALIST REPUTATION TO DRIVE AND ANCHOR PLACEMENTS
SIEMENS DIASORIN ABBOTT A O
DIASORIN POSITIONING DIASORIN DOUBLING REVENUE WITHIN 2015
~
4.0%
2X
3.5% MARKET SHARE %
WW: 造 1.8BN TRENDS
US MENU EXPANSION: TO ANCHOR PLACEMENTS AND FORTIFY VITAMIN D POSITION
3.0% 2.5% 2.0% 1.5%
2.5%
4%
1.0% 0.5% 0% 2011E
2015E Market Growth flat
DIASORIN TO EXPLOIT ITS LARGE ONCOLOGY AND ENDO MENU WITH LIAISON XL
NUCLEIC ACID TESTING (NAT) MARKET WW: ¤ 3.4BN
LATAM
APAC
TRENDS
Annual increase: • Oncology: • Viral infection:
MARKET PLAYERS
450 250
+17% +34% +12%
1,500
PRICING
Decrease 10% due to: • New competitors • New technologies • Expiration of IP
1,200
MARKET SHARE ROCHE: QIAGEN: ABBOTT: G GEN-PROBE: SIE SIEMENS: OTHERS :
25% 15% 10% 9% 9% 32%
SIEMENS MENS GEN PROBE 9%
9% ABBOTT
15%
EUROPE
DIASORIN PURPOSE AND STRATEGY PURPOSE: ¤ 15-20MLN ADDITIONAL REVENUES STRATEGY: NEW NAT COST EFFECTIVE PRODUCT LINE USING LAMP TECHNOLOGY LEVERAGE ON THE LIAISON ID INSTALLED BASE (OVER 2,000) WITH COMPLIMENTARY ID NAT ASSAYS: LAUNCH 7 NAT ID TESTS IN 2012 LAUNCH A LAMP ANALYZER (LIAISON IAM) AND AN AUTOMATED EXTRACTOR WITHIN 2012 ENTER INTO THE ONCO-HEMATOLOGY TESTING MARKET WITH FULL TESTING MENU. LAUNCH 2 TESTS IN 2013
DIASORIN ADDRESSING A NEW MARKET
32%
10%
QIAGEN USA
OTHERS
25%
ROCHE
GEOGRAPHICAL EXPANSION BRAZIL CHINA ISRAEL MEXICO
AUSTRIA CZECH REP. IRELAND PORTUGAL
CANADA
AUSTRALIA NETHERLANDS SOUTH AFRICA
INDIA PURPOSE: penetrate a fast growing market STRATEGY: JV with local distributors
JAPAN PURPOSE: penetrate the richest IVD market STRATEGY: local distributor support or acquisition
2005-2007
2008
FURTHER GEOGRAPHICAL EXPANSION
2009
2010-2011
2012-2015
LIAISON XL, THE NEW FRONT LINE ANALYZER HIGH THROUGHPUT 180 TESTS/HOUR
FULL LSN MENU + HIV AND HCV
UP TO 25 REAGENTS ON BOARD
AVAILABLE TO CONNECT WITH LAS
CONSUMABLES LOADING
TOUCH SCREEN VIDEO
STARTER REAGENTS
REAGENTS
SAMPLES LOADING
MICROPARTICLES SUSPENDING AREA
CABINET
A COMPACT AND EFFICIENT DESIGN, WITH FEATURES ENHANCING DIASORIN VALUE PROPOSITION TO THE LABS
FROM LIAISON TO LIAISON XL 240 MAJOR COMPETITORS ARCHITECT 2000
200
CENTAUR XP UNICELDXI 600 VITROS 3600
THROUGHPUT/H
160
COBAS E
120
MAJOR COMPETITORS
80
CENTAUR CP ARCHITECT 1000 ACCESS II
40
0 5
10
15
20
25
30
REAGENT CHANNELS FROM LIAISON, BENCH TOP SPECIALTY MARKET ANALYZER TO LIAISON XL, FRONT LINE ANALYZER
35
40
LIAISON XL: COMPETITIVE ENVIRONMENT DIASORIN
ROCHE COBAS E
BECKMAN COULTER DXI 600
ABBOTT ARCHITECT 2000
SIEMENS CENTAUR XP
ORTHO VITROS 3600
THROUGHPUT
120
180
170
200
200
240
180
TOTAL MENU
92
94
73
57
50
60
50
MENU OF “SPECIALTIES”
++++
++++
++
+
+
+
+
TECHNOLOGY
CLIA
CLIA
ECLIA
CLIA
CMIA
CLIA
CLIA
++
+++
++
+++
+++
+++
++
> 4,000
<100
6,000
500
>10,000
5,000
500
B
F
F
F
F
F
F
LEVEL OF AUTOMATION
INSTALLED BASE
BENCH TOP / FLOOR
LIAISON XL: SUPERIOR CONTENT AND BREATH OF MENU
VITAMIN D Carlo Rosa
Chief Executive Officer
WORLDWIDE VITAMIN D MARKET: 2007-2011E 100.0 90.0 80.0
Million Tests
70.0
2
60.0
700
20
10
6 : +7 R G CA
CA 10 0 2 0720
50.0
GR
.7 %
:
.8 +78
20
20 07-
11E
200
%
7
6 : +5 R G CA
11 -20
EC
.3%
2 : +6 R AG
40.0 30.0 20.0 10.0 0 2007 00 07 WW market tests
2008 20 008 00 08 DiaSorin tests
AN IMPRESSIVE DEMAND GROWTH OVERTIME
2009 20 009 00 09
2010 20 010 010
2011E 20 011E 01
.1 %
17 173.5
MKT TESTS
79.4
94.9
113.4
132.9
125.3
147.4
149.8
150
133.5
DS TESTS
155.6
200
177.1 17 7
VITAMIN D PENETRATION
0.1
0.2
1.0
4.1
4.5
4.6
1.2
13.1
6.8
14.8
14.3
16.9
10.7
23.6
16.8
23.9
17.0
23.7
50
35.1
40.5
64.8
TESTS/1000 INHAB
100
0 ISRAEL
FRANCE
BELGIUM USA
AUSTRALIA
DENMARK
CANADA GERMANY NETHERLANDS
ITALY SPAIN
UK
CZECH REPUBLIC
PORTUGAL BRAZIL
JAPAN MEXICO
CHINA
VITAMIN D EXCEPTIONAL GROWTH TREND DUE TO: • CLINICAL EVIDENCE DISCOVERY • CHEAP SUPPLEMENTATION AVAILABILITY IN SEVERAL COUNTRIES • MEDIA COVERAGE ON VIT D EFFECTIVENESS
DIASORIN PRESENT IN BOTH PENETRATED/UNDERPENETRATED MARKETS WITH A MKT SHARE BETWEEN 50% AND 90% STILL LARGE OPPORTUNITY IN UNDERPENETRATED OR UNTOUCHED MARKETS
PRODUCT CYCLE OF VITAMIN D ADOPTION PRE - MKT PHASE
INTRODUCTION
GROWTH
MATURITY
DECLINE
USA
BELGIUM AUSTRALIAA
SALES
ISRAEL GERMANY
DENMARK
FRANCE
NETHERLANDS BRAZIL CANADA SPAIN ITALY
UK
MEXICO CZECH REPUBLIC PORTUGAL JAPAN
CHINA*
TIME *CALCULATED ON 100 MLN POPULATION ACCESSING HEALTHCARE
STILL LARGE OPPORTUNITY IN EARLY PHASE PRODUCT LIFE CYCLE MARKETS
# TESTS / 1% POPULATION PENETRATION
PRESCRIPTIONS AND POTENTIAL APPLICATIONS INTERNAL MEDICINE HOSPITAL AND HSP LABOUR
16% GENERAL PRACTICE
25%
6% 4%
OBSTETRIC & GYNEC. ENDOCRINOLOGY
4% 4% 2% 2%
30% 5%
MULTI SPECIALTY PRACTICE NEPHROLOGY
2%
GPS AND INTERNISTS ACCOUNT FOR 61% OF TOTAL TESTING PRESCRIPTIONS
REUMATOLOGY PEDIATRICS
FAMILY PRACTICE MAIN CURRENT APPLICATIONS
OTHERS
COMPANY DATA
FUTURE POTENTIAL APPLICATIONS
RATIONALE
DIABETES
INVERSE CORRELATION BETWEEN 25 OH VITAMIN D LEVELS AND BLOOD PRESSURE
HYPERTENSION
INVERSE CORRELATION BETWEEN VITAMIN D LEVELS AND GLUCOSE LEVELS
AUTOIMMUNITY
LOW VITAMIN D LEVELS ASSOCIATED WITH PREVALENCE AND PROGRESSION OF AUTOIMMUNE DISEASES (e.g. MULTIPLE SCLEROSIS, RHEUMATOID ARTHRITIS)
ENDOCRINOLOGY
THE ENDOCRINE SOCIETY IDENTIFIED CANDIDATES FOR SCREENING USING VITAMIN D BLOOD LEVEL MEASUREMENTS
BONE DISORDERS
CURRENT EVIDENCE ON VIT D TESTING NEED AND FURTHER POTENTIAL APPLICATIONS BOOSTING FUTURE PRESCRIPTIONS
CONSOLIDATED VITAMIN D MARKETS US: VITAMIN D MARKET
21.0%
65 MLN TESTS
• 40% (125MLN) of the US population is Vitamin D deficient* or insufficient, but less then half is tested • Vitamin D tests/year can grow from 53MLN (2011E) to ~ 65MLN in the next 4 years, maturing to ~ 20% market penetration (~ 5% 2011-2015E CAGR) • Pricing: declining
MKT PENETRATION%
20.5% 20.0% 19.5% 19.0% 18.5% 18.0% 17.5%
53 MLN TESTS
20%
17.0% 16.5%
17%
16.0% 2011E
* US Census Bureau Data
EEUROPE: UROPPEE: V VITAMIN ITA AM MIN D MARKET MARK M ARKEETT
2015E
12%
• Vitamin D in european markets can double, from 20MLN (2011E) to ~ 40MLN in the next 4 years (10% penetration); (~ 19% 2011-2015E CAGR). Still, only 1/4 of Vitamin D deficient will be tested
MKT PENETRATION%
40 MLN TESTS • 40% (150MLN) of Europeans are Vitamin D deficient or insufficient, but less than 5% are tested
10% 8% 6%
20 MLN TESTS
10%
4% 2%
• Pricing: declining
5%
0% 2011E
VITAMIN D IN US AND EUROPE: MARKETS THAT DIASORIN WILL CONTINUE TO PLAY
2015E
EMERGING VITAMIN D MARKETS CHINA: VITAMIN D MARKET
6%
• DiaSorin as the only provider on the chinese market with CLIA test just approved • Pricing: increasing
MKT PENETRATION%
5 MLN TESTS • Huge potential: unexplored market
5% 4% 3%
5%
2% 1% 0%
0% 2011E
BRAZIL: VITAMIN D MARKET
• US like market: increased awareness of Vitamin D benefits in Bone Diseases • Pricing: stabilizing
MKT PENETRATION%
• US like market: fast growing demand driven by big reference labs marketing activities
7%
2015E
12 MLN TESTS
6% 5% 4%
6%
3% 2%
1 MLN TESTS 1% 0%
0.5% 2011E
VITAMIN D IN EMERGING MARKETS: A HUGE OPPORTUNITY THAT DIASORIN IS READY TO PLAY
2015E
VITAMIN D IN JAPAN JAPAN VITAMIN D MARKET In Japan, Calcium and Vitamin D deficiency is more prevalent than in the US and Europe (Calcium and Vitamin D in Osteoporosis, Takuo Fajita, et al. Journal of Bone and Mineral metabolism, Japan Volume 9, N°2, August 1991)
Large Japanese Class A evidence Trial demonstrates low Vitamin D levels are associated with more bone fractures (effect of alendronate plus alfacalcidol in osteoporosis patients with high risk of fractures, Hajime Orimo et al. Current Medical Research & Opinion, vol 27, N°6, 2011)
OSTEOPOROSIS
DIASORIN STRATEGY Registration for pediatric indication and osteoporosis
13 MILLION CASES • Treatment given only in advanced disease
2.4MLN tests initially; potential to double in 3 to 5 years
• Rare use of estrogenic replacement therapy (culture) • Common use of Vitamin D derivatives and Calcium
JAPAN: POTENTIAL VITAMIN D MARKET
(Clinical Guidelines for treatment of osteoporosis in Japan, T. Fujita. Calcified Tissue International, Volume 59, Supplement 1, 1996)
• Increased skin pigmentation • Diet low in Vitamin D and low exposure to sunlight
5 MLN TESTS MKT PENETRATION%
PEDIATRICS
6.0% 5.0% 4.0% 3.0%
~ 4%
2.0% 1.0%
0%
0% 2011E
VITAMIN D IN JAPAN: AN UNTOUCHED OPPORTUNITY THAT DIASORIN IS READY TO PLAY
2015E
VITAMIN D MARKET GROWTH FORECAST 160.0 140.0 2 01
1E-
5E 2 01
MILLION TESTS
120.0 2 01
100.0
1E-
CA
4 : +1 GR
5E 2 01
CA
.4%
0 : +1 GR
.0 %
80.0 60.0 40.0 20.0 0 2011E 201 011E 01 1 WW market tests
2015E DiaSorin tests
DIASORIN AIMS TO MAINTAIN A SIGNIFICANT GROWTH, LEVERAGING ON ITS UNDISPUTED LEADERSHIP IN THE VITAMIN D MARKET
HUMAN CAPITAL Stefano Ronchi
Senior Corporate VP Human Resources
DIASORIN IDENTIFICATION
IDENTIFICATION IN LAST 10 YEARS
HOW WE DID IT
SINCE 2000 THE HISTORY OF THE COMPANY SAYS THAT DIASORIN IS
GLOBAL PLAYER FOCUSED ON: MISSION CUSTOMERS INNOVATION AND CONTENT (RECOGNIZED BRAND)
PEOPLE FOR DIASORIN: THE KEY FOCUS
COMPANY VISION STRATEGY & EXECUTION
“LINKED TO THE KNOWLEDGE” THE VALUE OF OUR PEOPLE
LEADERSHIP
A STORY OF GROWTH & VALUE
TECHNICAL KNOWLEDGE
RESULTS CAN BE ACHIEVED WITH FULL COMMITMENT OF OUR PEOPLE TO COMPANY AND CUSTOMERS
DIASORIN PEOPLE MAP AGE 20%
EDUCATION Biology B
17%
19%
Chemistry C Biochemistry B
39%
5%
Technical Degrees: 40%
Engineering E Economics: E 7%
30%
9%
33%
Other O graduates: 14% Technical High School: 39%
7% 14% 7% WORLDWIDE EMPLOYEES 2007-2010 <30 years
30-40 yearss
40-50 yearss
>50 years
SERVICE IN DIASORIN
+56%
POSITIONS 15%
27% 39%
50%
18%
35% 16%
0-3 years
3-5 years
5-10 years
>10 years
Technical
Commercial
WORLDWIDE EMPLOYEES’ GROWTH LINKED TO THE FAST GROWING EXPANSION OF THE BUSINESS
G&A
INVESTMENT IN HUMAN CAPITAL
NUMBERS ON 2007-2010
LEADERSHIP “TOP 20” MANAGEMENT POSITIONS:
35%
45%
MANAGERS PROMOTED
NEW MANAGERS
43 NEW ENTRIES IN 20 DIFFERENT COUNTRIES AS “KEY MANAGERS”
INVESTMENT ON OUR
TALENTS ACCOUNTABILITY OF THE TOP MANAGEMENT IN MANAGING THE “KEY-PEOPLE” THROUGH: CAREER DEVELOPMENT INTERNATIONAL MOBILITY RETENTION PLANS COMPENSATION REWARDING RESULTS
MARKET PROVENANCE: DIAGNOSTIC MARKET FOR
BUSINESS & MANAGERIAL ROLES BIGGER INTERNATIONAL CORPORATIONS FOR
CORPORATE & CROSS FUNCTIONAL ROLES THE KEY-ELEMENTS ON WHICH DIASORIN HAS BUILT ITS SUCCESS ARE THE VALUE AND QUALITY OF ITS HUMAN CAPITAL
DIASORIN MANAGEMENT STYLE COMPETENCE
SELF-CRITICISM/INSURANCE OF STRENGTHS ENERGY
PASSION
IMPLEMENTATION /ACTION
DEDICATION
PRAGMATISM
ABILITY TO TAKE DECISIONS
IDENTIFICATION WITH THE COMPANY ATTENTION TO DETAILS
HUMAN CAPITAL: VALUE OF INTANGIBLE ASSETS
DIASORIN LEADERSHIP: 2012-2015 MODEL REFLECTS VALUES AND TRAITS OF A TRUSTWORTHY MANAGEMENT DEFINES A COMMON LANGUAGE ON THE WAY “TO BE A LEADER” INCREASES EXCELLENCE MANAGEMENT GOING FORWARD
WE IDENTIFY OURSELVES IN THESE VALUES THE MARKET CAN MATERIALLY VALUE US ON THESE TRAITS HR SUPPORTS THE ENHANCEMENT OF THE QUALITY OF ITS LEADERS
DIASORIN: RIDING A NEW BUSINESS WAVE DIASORIN LEADERSHIP MODEL, A WELL-BALANCED MIX OF ENTREPRENEURIAL SPIRIT AND MANAGERIAL SKILLS
IDENTIFICATION WITH THE COMPANY ORIENTATION ENNNTT TO RE RES RESULTS EES
INNOVATION AND CHANGE DRIVER
ENERGY, GYYY, DRIVE AND PRO-ACTIVITY -AAACC
QUALITY
ACCOUNTABILITY
CARE FOR CUSTOMERS
INTEGRITY
PEOPLE INSPIRING
ENTREPRENEURIAL SPIRIT
MANAGERIAL SKILLS
HR SUPPORTS THE FUTURE GOALS OF THE COMPANY
2012-2015: RIDING A NEW BUSINESS WAVE Andrea Senaldi Senior Corporate VP and Chief Financial Officer Carlo Rosa Chief Executive Officer
HISTORICAL FINANCIALS 造/MLN
FY 2010
FY 2009
2010 VS. 2009
FY 2008
FY 2007
SALES
404.5
304.1
244.6
202.3
EBITDA %
167.1 41.3%
123.6 40.7%
+ 33.0% + 35.2%
85.6 35.0%
64.0 31.6%
EBIT %
145.5 36.0%
106.4 35.0%
+ 36.8%
70.8 28.9%
50.1 24.7%
NET RESULT %
90.4 22.4%
70.0 23.0%
+ 29.1%
37.5 15.3%
25.2 12.5% As reported
YoY GROWTH +100%
+87.0% + 75%
CAGR 2007-2010
+26.0% +48.5%
+50.3% CAGR 2007-2010
+36.8%
+50%
+41.4% +44.4% +25%
+33.8% +20.9%
+24.3%
+35.2% +33.0% +29.1%
+37.7% +42.7%
EBIT
CAGR 2007-2010
+53.1% 2009
EBITDA
CAGR 2007-2010
+0%
2008
SALES
2010
STRONG RESULTS AND HIGH PROFITABILITY DISREGARDING WORLDWIDE ECONOMIC SITUATION
NET RESULT
2010 KEY NUMBERS 2010 SALES BREAKDOWN
SALES BY GEOGRAPHY IN €/MLN
304.1
19.6%
+17.0
+6.8 LATAM
APAC
EUROPE & AFRICA
5.2% 9.3%
RIA
+10.3
+43.2
+23.1
404.5
MUREX NORTH AMERICA
65.9%
ELISA
LIASON
INSTRUMENTS + OTHER
FY 2009
2010 COSTS BREAKDOWN
FY 2010 COSTS COMPONENTS IN €/MLN
3.2%
+29.3
16.1%
198.7
7.5%
+12.9
+3.3 R&D
+9.3 SG&A
+5.5
259.0
OTHER COSTS
S&M COGS
46.2%
27.0%
COGS
S&M
R&D
SG&A
OTHER COSTS
FY 2009
FAST SALES GROWTH PACE SUPPORTED BY A WELL MANAGED COST STRUCTURE
FY 2010
HISTORICAL BALANCE SHEET AND CASH FLOW FY 2010
FY 2009
FY 2008
FY 2007
TANGIBLE ASSETS
57.6
42.0
35.4
33.9
INTANGIBLE ASSETS
126.9
96.6
93.3
65.4
OTHER NON-CURRENT ASSETS
20.2
19.6
10.1
9.2
NET WORKING CAPITAL
106.4
74.5
57.7
46.2
OTHER NON-CURRENT LIABILITIES
(28.2)
(25.3)
(22.9)
(22.3)
NET CAPITAL EMPLOYED
282.9
206.7
173.9
s132.4
33.1
11.2
(19.8)
(12.1)
315.9
217.9
154.1
120.3
NET CHANGE IN CASH AND CASH EQUIVALENTS
+14.507
+31.095
+8.423
-0.351
CASH AND EQUIVALENTS AT THE END OF THE PERIOD
62.392
47.885
16.790
8.367
¤/MLN
NET FINANCIAL POSITION TOTAL SHAREHOLDERS’ EQUITY
50
SOLID RESULTS AND VALUE GENERATION DISTINGUISHING OUR COMPANY SINCE IPO
INSTALLED BASE AND REVENUE PER BOX 80.6K 0 –2 4 00 % 2 GR >10 CA
10
3,912 3,641 2,975
LIAISON REVENUE PER BOX
2,510 44.6K
0 2,070
990
20 – 4 00 % 2 G R > 24 CA
10
LIAISON INSTALLED BASE
2004
2007
2008
4,000 INSTALLED MACHINES TARGET ALREADY ACHIEVED
2009
2010
H1 11
H1 2011 RESULTS H1 2011
H1 2010
H1’11 VS. H1’10
227.1
187.2
+21.3%
DESPITE NEGATIVE FX IMPACT ON SALES
EBITDA %
101.4 44.7%
80.4 42.9%
+26.2%
IMPROVED TECHNOLOGY MIX
EBIT %
88.4 38.9%
70.9 37.9%
+ 24.6%
NET RESULT %
56.4 24.8%
43.0 23.0%
+31.1%
06/30/2011
12/31/2010
57.3
57.6
122.7
126.9
Operating cash flow: ¤ 49.5MLN, before
21.2
20.2
Capex of ¤ 11.9MLN (¤ 40.4MLN in H1’10,
125.0
106.4
(30.6)
(28.2)
295.6
282.9
22.7
33.1
318.3
315.9
H1 2011
H1 2010
-16.938(1)
-23.084
¤/MLN
SALES
TANGIBLE ASSETS INTANGIBLE ASSETS OTHER NON-CURRENT ASSETS NET WORKING CAPITAL OTHER NON-CURRENT LIABILITIES NET CAPITAL EMPLOYED NET FINANCIAL POSITION TOTAL SHAREHOLDERS’ EQUITY
NET CHANGE IN CASH AND CASH EQUIVALENTS CASH AND EQUIVALENTS AT THE END OF THE PERIOD
45.454
PROFITABILITY IMPROVEMENT
CLIA revenues: 73.2% (+450bps vs. H1’10) Higher incidence of high margins tests sales Lower incidence of operating expenses
24.801
SOLID FINANCIAL STRUCTURE
before Capex of ¤ 12.5MLN)
FINANCIAL POSITION AT 06/30/11 +¤ 22.7MLN
(1)
Decrease of ¤ 16.9MLN due to: Share buyback plan Australia distr. Rights + Murex Dividends payment
H1 2011 RESULTS CONFIRMING A STRONG YEAR, DESPITE THE WORLDWIDE ECONOMIC SITUATION
-25.1 -3.2 -22.0
H1’11 KEY NUMBERS H1 2011 SALES BREAK DOWN
SALES BY GEOGRAPHY IN €/MLN
19.1%
187.2
+9.0
+5.4 LATAM
4.2%
+7.1 APAC
+1.6
+16.8
227.1
MUREX
NORTH AMERICA
EUROPE & AFRICA
9.3% 67.4%
RIA
ELISA
LIASON
INSTRUMENTS + OTHER
H1 2010
H1 2011 COSTS BREAKDOWN
H1 2011 COSTS COMPONENTS IN €/MLN
2.7% 15.9%
116.3 7.7%
+10.2
+6.4
+2.1 R&D
+3.8
138.8
SG&A
S&M COGS
45.3% 28.4%
COGS
S&M
R&D
SG&A
OTHER COSTS
H1 2010
FAST SALES GROWTH PACE SUPPORTED BY A WELL MANAGED COST STRUCTURE
H1 2011
2011 EXPECTED RESULTS GROWTH ¤/MLN
FY 2011 E
FY 2010
AS REPORTED
CER*
SALES
~
450
405
~
11%
~
13%
EBITDA
~
200
167
~
20%
~
23%
MARGIN
~
44%
41%
* FX change as of 2010
CHALLENGING AND TOUGH ECONOMIC ENVIRONMENT, BUT: • STILL DOUBLE DIGIT GROWTH IN SALES • FURTHER IMPROVEMENT IN PROFITABILITY
HEALTHY RESULTS EXPECTED, NOTWITHSTANDING WEAKNESS IN ECONOMIC ENVIRONMENT
STOCK PRICE PERFORMANCE 350 300 250 +120.1%
200 150 -8.6%
100 50
DiaSorin
1 19
9/
/2 19 7/
/2
01
01
1
1 01
1 5/
19
/2
01
1
/2
/2
19 3/
19 1/
9/
20
01 /1 11
/2 19 9/
01
10
0
0 01
0
/2
/2
19 7/
01
19
/2 19
5/
/2 3/
19 1/
01
0
0 01
09
9
20 9/ /1
11
9/
19
/2 19 7/
/2
00
00
9
9 00
9
/2 19
5/
/2 19
3/
1/
19
/2
20
00
00
9
08
8 9/ /1 11
19 9/
/2 19 7/
Italy FTSE MIB
/2
00
00
8
8 00
8
/2 19
5/
/2
19 3/
19 1/
/2
00
00
8
08 20 9/
/1 11
/2 19 9/
7/
19
/2
00
00
7
7
-66.5%
Competitors benchmark
Competitors Benchmark weighted for Mkt Cap in 造/mln includes: BioMerieux, Qiagen, Gen-Probe, Alere, Cepheid, Immucor, Myriad Genetics, Tecan Group, Meridian Bioscience, Abaxis, Stratec Biomedical, Quidel, Axis-Shield, Beckman Coulter, Becton Dickinson
DIASORIN STOCK PRICE PERFORMANCE SINCE IPO BEATING ITALY FTSE MIB AND COMPETITORS BENCHMARK TREND
TARGET PRICES AND RATINGS STOCK CURRENTLY TRADING AT A HIGHER DISCOUNT VS. CONSENSUS ESTIMATES AND THE AVG. 12 MONTHS TP
8
7
7
7
7
8
9
9
9
10
11
11
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
13
# of Brokers
40
38 36 34
32
30 28
26 24
Sep´10 Oct
Buy + Overweight
Hold
Sell + Underweight
Price
Sep´11
Target Price Source: FactSet
POTENTIAL 12 MONTHS UPSIDE ON ANALYSTS ESTIMATES ˜ 33%
2012-2015 STRATEGY
BUSINESS PLAN REVENUES MAIN ASSUMPTIONS VITAMIN D SALES 2011-2015 CAGR
LIAISON SALES (EX VITAMIN D) 2011-2015 CAGR
MUREX SALES 2011-2015
NAT GENERATING BY 2015 €/MLN SALES
2.2%
21%
7%
15-20
FOCUSING AGAINST OTHER LARGE EIA SUPPLIERS (ORTHO CLINIC DIAGNOSTICS & BIO-RAD LABORATORIES)
WITH THE INITIAL INFECTIOUS DISEASE AND ONCOLOGY PANEL LAUNCHED BY END 2012
PRICE EROSION IN THE US AND EUROPE CAGR ~ 7%
LAUNCH OF BLOOD SCREENING PANEL
VOLUME CAGR: ~ +10%
LAUNCH OF STOOL PANEL IN 2012 [C. DIFFICILE IN Q4 2011]
LAUNCH OF VITAMIN D IN JAPAN BY Q4 2012
LAUNCH OF HYPERTENSION PANEL IN 2012 AND MARKET SHARE INCREASE IN INFECTIOUS DISEASE AND ONCOLOGY
DIASORIN: RIDING A NEW BUSINESS WAVE
BUSINESS PLAN MAIN MARGIN ASSUMPTIONS
GROSS MARGINS FLAT ON 2011: >70% PRESSURE IN VITAMIN D PRICES SCALE ECONOMIES IN MANUFACTURING PLANTS REDUCED ROYALTY RATES
OPERATING MARGINS: SUSTAINABLE THROUGHOUT THE PERIOD ADDITIONAL INVESTMENT COMPENSATED THROUGH OPERATING LEVERAGE
DIASORIN: RIDING A NEW BUSINESS WAVE
DIASORIN ADDITIONAL REVENUES BREAKDOWN MARKET VALUE ¤/MLN
INFECTIOUS DISEASE (EX HEPATITIS AND RETROVIRUSES)
WW
850
HEPATITIS AND RETROVIRUSES
WW 1,500 WW ex US Japan 750
WW DIASORIN MARKET SHARE
REVENUES POTENTIAL ¤/MLN
DIASORIN STRATEGY
2011E
2015E
10%
~ 15%
60-70
Liaison XL to: - access mid-large clinical labs - accelerate plate conversion - consolidate ID ID menu hooking: - Parvovirus - MMRV panel (USA) - Mycoplasma
5%
~ 8%
40-50
- Leverage on ID - Liaison XL - Full menu proposition - Menu differentiation - Large Installed base in Key markets - Murex Brand
and
ONCOLOGY AND ENDOCRINOLOGY
WW 1,800
2%
~ 4%
30-40
- Liaison XL - Full menu proposition - Specialties proposition - USA menu expansion - Hypertension
GI STOOL TESTING
WW 300 Europe ~ 100
-
~ 4%
15-20
- 1st offering GI stool panel on fully automated platform - Leverage on ID - Co-development of stool panel for WW market (ex US) - ID growth and anchorage with menu on Liaison + Liaison XL
NUCLEIC ACID TESTING (NAT)
WW 3,400
-
n.m.
15-20
- New NAT product line using LAMP - Leverage on installed base with complementary NAT assays - 2012 launch: - 7 NAT ID tests - LAMP analyzer (LIAISION IAM) - Automated Extractor - Stool collection device - New market penetration: Onco-Hematology (2 tests in 2013)
VITAMIN D
WW 270
55%
~ 45%
10-20
- Maintenance of Vit D market leadership - New markets penetration (e.g. Japan - Q4’12)
DIASORIN: RIDING A NEW BUSINESS WAVE
2012-2015 GUIDANCE FY 2011 E
¤/MLN
FY 2015 E
SALES
~
450
630-680
EBITDA
~
200
> 280
10% ~ E 01 5 2 – 1E 1 0 2 9% GR ~ A C E 01 5 2 – 1E 1 0 R2 G CA
2015 E
2011 E SALES
DIASORIN: RIDING A NEW BUSINESS WAVE
EBITDA
FUTURE M&A DIASORIN STRONG BALANCE SHEET AND CASH GENERATION ALLOW US TO LOOK FOR FUTURE ACQUISITIONS IN TERMS OF: CUMULATED FREE CASH FLOW @2015E: EBITDA FY 2015E:
CONTENTS
~ 600 > 280
TECHNOLOGIES PRODUCTS DEVELOPMENT OF NET DEBT AND EBITDA
NET DEBT / EBITDA RATIO 0.35x 0.25x 0.15x 0.05x (0.05x) (0.15x) (0.25x)
FY 2007
EBITDA
FY 2008
N Net Debt
FY 2009
FY 2010
FY 2007
FY 2008
Net Debt/EBITDA
DIASORIN CASH AS THE BASIS FOR FUTURE ACQUISITIONS AND AGREEMENTS
FY 2009
FY 2010
RIDING A NEW BUSINESS WAVE
VALUE
SUSTAINABLE GROWTH
INNOVATION QUALITY
COMMITMENT TO CLIENTS