3nd quarter 2007 Conference Call November, 12
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3Q ’07 Conference Call
November, 12 2007
1
Q3 Results: income statement Q3 2007
Q3 2006
Δ as reported
Net Revenues
49.0
43.5
+12.6%
Gross profit
30.4
26.8
+13.5%
62.0%
61.5%
SG&A
(16.5)
(14.4)
R&D
(2.7)
(2.2)
Other opex
(1.2)
1.8
Out of which non recurring
(1.9)
1.9
10.0
12.0
20.5%
27.6%
11.9
10.1
24.3%
23.1%
Net Financial expense
(0.7)
(0.9)
Tax
(4.0)
(4.4)
Net Result
5.3
6.7
(20.3%)
Net Result ex Exceptional items
6.5
5.5
+16.8%
Ebitda
13.5
15.5
(13.1%)
Margin
27.5%
35.6%
15.3
13.5
31.2%
31.1%
millions €
Margin
Ebit Margin
Ebit ex exceptional items Margin
Ebitda ex exceptional items Margin 3Q ’07 Conference Call
(16.4%) +18.1%
+13.0%
November, 12 2007
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Accelerated revenues growth Revenues increase by 12.6% although exchange rate effects (+14.7% at comparable fx), improving growth rate from second quarter results, thanks to: ● Steady enlargement of Liaison installed base, grown from around 1870 (30/06/07) to around 1960 (30/09/07) ● Leverage of the Liaison installed base ● Enriched specialty assay portfolio offer: since 2006 until end of September we launched 14 new assays out of which 11 specialty ● Growing sales in NA, recent direct initiatives (Mex, Isr and China) and Europe
3Q ’07 Conference Call
November, 12 2007
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Revenues break down: by technology CLIA sales still trigger revenues growth CLIA sales keep growing at higher rate than other technologies +27% Q3 07 vs Q3 06
Revenues mix by technology improved towards CLIA kits, from 45.3% in Q3 06 to 51.1% in Q3 07 of total sales Q3 06 Instruments (Liaison) 8,2%
Q3 07 Instruments (Liaison) 11,1%
RIA 13,1%
RIA 11,5%
ELISA 26,3%
CLIA 45,3%
3Q ’07 Conference Call
ELISA 33,4%
CLIA 51,1%
November, 12 2007
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Revenues break down: by geography millions €
3rd Quarter 2007
2006
Δ%
Europe
28.7
25.7
11.6%
North America
11.6
9.9
18.0%
Rest of the World
8.7
7.9
9.1%
Total
49.0
43.5
12.6%
●
Increased market share in consolidated markets such as Belgium France Germany Nordic
●
+12.1% Q3 07 vs Q3 06 +9.7% Q3 07 vs Q3 06 +8.8% Q3 07 vs Q3 06 +25.5% Q3 07 vs Q3 06
Promising growth rate in recent initiatives: China +30.0 % Q3 07 vs Q3 06 Mexico +15.5% Q3 07 vs Q3 06 (+ 23.5 % in local currency) Israel +284.9% Q3 07 vs Q3 06
3Q ’07 Conference Call
November, 12 2007
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Clearly improving profitability Profitability continuously improved, net of non recurring expenses due to IPO process: +13.5% Q3 07 vs Q3 06
from 61.5% to 62.0% of tot sales
EBITDA -13.1% Q3 07 vs Q3 06 EBITDA ex excep.* +13 % Q3 07 vs Q3 06
from 35.6% to 27.5% of tot sales from 31.1% to 31.2% of tot sales
-16.4% Q3 07 vs Q3 06 +18.1% Q3 07 vs Q3 06
from 27.6% to 20.5% of tot sales from 23.1% to 24.3% of tot sales
Gross Margins
EBIT EBIT ex excep.*
Thanks to: ● Improved technology mix: CLIA revenues represents 51.1% in Q3 07 vs 45.3% in Q3 06; the positive effect is mitigated by a higher weight of instrument sales with lower margin during Q3 ●
Lower incidence of instrument depreciation on total sales but lower absorbtion of manufacturing fixed costs
●
Opex under control despite more than proportional investment in R&D and corporate governance (SO 0.6 vs 0.2 py) * In Q3 07 € (1.9) of not recurring, in Q306 1,9 of not recurring
3Q ’07 Conference Call
November, 12 2007
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3Q Results: balance sheet & cash flow millions €
30/09/07
31/12/06
Total tangible asset
34.4
35.5
Total intangible asset
64.5
62.8
Other non-current asset
9.3
8.7
Net Working Capital
41.9
38.3
(21.7)
(22.9)
Net Capital Employed
128.4
122.4
Net Debt
(15.9)
(34.7)
Total shareholder’s’ equity
(112.5)
(87.7)
Q3 07
Q3 06
Net change in cash and cash equivalents
12.9
13.7
Cash and equivalents at the end of the period
22.5
16.5
Other non-current liabilities
3Q ’07 Conference Call
November, 12 2007
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Solid financial structure ● Operating cash flow (after investment activities) in Q3: € 8.3 MM ● Cash flow from financing activities increase to € 4.6 MM, due to 2004-2008 stock options plan subscribtion ● Net debt € 15.9 millions in Q3 07 vs € 30.1 in Q2 07 and 34.7 at the end of 2006 ● Cash and equivalents at the end of the period amount to € 22.5 MM.
3Q ’07 Conference Call
November, 12 2007
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9M Results: income statement 9M 2007
9M 2006
Δ as reported
151.2
136.7
+10.6%
96.3
83.0
+16.0%
63.7%
60.8%
SG&A
(49.5)
(44.0)
R&D
(8.1)
(6.7)
Other opex
(4.1)
1.1
Out of which non recurring
(4.0)
1.9
34.7
33.5
22.9%
24.5%
38.7
31.6
25.6%
23.1%
Net Financial expense
(2.9)
(2.8)
Tax
(12.7)
(11.7)
Net Result
19.1
19.0
+0.4%
Net Result ex Exceptional items
21.9
17.8
+23.2%
Ebitda
45.1
44.0
+2.5%
Margin
29.8%
32.2%
49.1
42.1
32.5%
30.8%
millions €
Net Revenues Gross profit Margin
Ebit Margin
Ebit ex exceptional items Margin
Ebitda ex exceptional items Margin 3Q ’07 Conference Call
+3.4% +22.5%
+16.6%
November, 12 2007
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Clearly improving profitability Profitability strongly improved, although non recurring expenditures, due to IPO process: Gross Margins
+16.0% YTD 07 vs YTD 06
from 60.8% to 63.7% of tot sales
EBITDA + 2.5% YTD 07 vs YTD 06 from 32.2% to 29.8% of tot sales EBITDA ex excep.* +16.7 % YTD 07 vs YTD 06 from 30.8% to 32.5% of tot sales EBIT EBIT ex excep.*
+3.5% YTD 07 vs YTD 06 +22.5% YTD 07 vs YTD 06
from 24.5% to 22.9% of tot sales from 23.1% to 25.6% of tot sales
Thanks to: ● Improved technology mix: CLIA revenues represents 49.8% in YTD 07 vs 42.9% in YTD 06 ● Lower incidence of instrument depreciation on total sales ● Opex under control despite more than proportional investment in R&D and corporate governance (SO 1.2 vs 0.6 py)
* In Q3 07 € (1.9) of not recurring, in Q306 1,9 of not recurring
3Q ’07 Conference Call
November, 12 2007
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3nd quarter 2007 Conference Call November, 12