eurofins corporate presentation
TRANSCRIPT
CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd, 2020.
All rights reserved. This document contains information that is confidential and proprietary to
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www.eurofins.com
Eurofins Corporate Presentation
Consistently delivering strong, sustainable, profitable growth
Doubled revenues every 4 years on average between 2005 and 2020
Sales & reported EBITDA multiplied by more than 23 times between 2005 and 2020
Basic reported EPS to owners multiplied by more than 29 times between 2005 and 2020
August 2021
The global leader in food, environment, pharmaceutical & cosmetic product testing
and in agroscience Contract Research Organisation services, and an emerging
leader in specialised clinical diagnostics
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Disclaimer
This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase securities in Eurofins Scientific
S.E. and neither this document nor anything contained or referred to in it shall form the basis of, or be relied on in connection with, any offer or commitment
whatsoever.
The statements made during this presentation or as response to questions during the Question & Answers period that are not historical facts are forward looking
statements. Furthermore, estimates and judgements may be made based on market and competitive information available at a certain time. Forward looking
statements and estimates represent the judgement of Eurofins Scientific’s management and involve risks and uncertainties including, but not limited to, risks
associated with the inherent uncertainty of research, product/service development and commercialisation, the impact of competitive products and services, patents
and other risk uncertainties, including those detailed from time to time in period reports, including prospectus and annual reports filed by Eurofins Scientific with the
Luxembourg Stock Exchange and regulatory authorities, that can cause actual results to differ materially from those projected. Eurofins Scientific expressly disclaims
any obligation or intention to release publicly any updates or revisions to any forward looking statement or estimate.
Eurofins provides in the Income Statement certain alternative performance measures (non-IFRS information as “Adjusted Results and Separately Disclosed Items”)
that excludes certain items because of the nature of these items and the impact they have on the analysis of underlying business performance and trends. (Please
refer to description of these terms in the Company’s Annual Report). The management believes that providing this information enhances investors' understanding of
the company’s core operating results and future prospects, consistent with how management measures and forecasts the company’s performance, especially when
comparing such results to previous periods or objectives and to the performance of our competitors. This information should be considered in addition to, but not in
lieu of, information prepared in accordance with IFRS. These APMs are described in more detail in the Condensed Interim Consolidated Financial Statements for the
period ended 30 June 2021 in Note 1 and in the Consolidated Financial Statements 2020 in Notes 1.27 and 1.28.
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
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Key operational highlights (1/2)
• Record H1 on revenues, profits and cash generation, continuing the positive trends seen in Q1 2021
• Strong performance of Core Business1 with rapidly accelerating, strong growth across business lines:
o H1 2021: 17% organic growth2
o Q2 2021: 25% organic growth3
o Now largely recovered EUR 250m revenues lost due to COVID impacts in FY 2020, earlier than forecast
• Further notable product launches and continued innovation across business lines, including:
o Highly innovative rapid testing methods4 including for the identification of sugars and the certification of organic products
o New proprietary advanced testing methods to expand Clinical Diagnostics’ services for transplant patients
o Differentiated services/ technologies in Environment Testing including a new automated and robotised PFAS testing method supporting the lowest detection limits globally
o TruGraf® approved with Humana for in-network coverage of Medicare kidney transplant patients
• Since H1 2020 was affected by Covid, it is an easy comparable. Looking at organic growth from the pre-pandemic period,H1 2019 is a better indication of long term trends and business recovery
• Core Business H1 2021 organic revenue growth has been 13% compared to H1 20195
1 Excluding COVID-19 related clinical testing and reagent revenues
2 +16% vs H1 2019, close to +13% corrected for EUR 62m estimated revenue impact of cyber-attack of 2 June 2019
3 +19% vs Q2 2019, close to +13% corrected for EUR 62m estimated revenue impact of cyber-attack of 2 June 2019
4 Approved by the International Organization for Standardization (ISO), the European Committee for Standardization (CEN) and the International Dairy Federation (IDF)
5 2019 corrected for EUR 62m estimated revenue impact of cyber-attack of 2 June 2019
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Key operational highlights (2/2)
• Alongside the Core Business, the Group remains equally agile, committed and innovative to fight the pandemic
• Significant contribution from COVID-19 related activities and important milestones reached in H1 2021:
o Revenue contribution close to EUR 750m
o 25+ million COVID-19 PCR tests completed since the start of the pandemic
o 125,000+ SARS-CoV-2 samples sequenced from 23 countries since our press release on 28 December 2020
o Broad network of 1,000+ testing centres developed in Europe to facilitate travelling through SAFER@WORK™
• Continued progress made in H1 on the completion of Eurofins’ infrastructure and operational excellence programmes, to develop an unrivalled, fully digital network of state-of-the-art laboratories
• M&A activity:
o Very modest level of acquisitions in 2019, 2020 and H1 2021, confirming they are not short-term organic growth drivers
o 12 acquisitions closed in H1 2021 (EUR 37m full-year equivalent proforma revenues in 2020)
o EUR 225m committed to date in H2 on 7 acquisitions (EUR 95m full-year equivalent proforma revenues in 2020)
o DNA Diagnostics Center, a leader in consumer genetic testing in the U.S., acquired in July 2021, anticipates delivering revenues of USD 55m+ in 2021
o On track to achieve objective of adding EUR 150m proforma revenues from M&A in 2021
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FY 2020 Key operational highlights
• Strong performance and resilience of our core business, despite the impact of multiple lockdowns around the world
• Great collaboration across borders and business lines:
o Exceptionally quick ramp-up in response to the COVID-19 pandemic crisis
o Significant contribution to public health authorities’ fight against the pandemic, helping ensure uninterrupted access to safe food, water, medicines, essential products and services to the public
• Innovative product launches:
o SAFER@WORKTM Programmes for employer, environmental surface, site wastewater and product testing
o COVID-19 RT-PCR tests with easy and reliable at-home self-sampling options
o GSD Novatype® RT-PCR for fast variant identification
o GSD NovaPrime® SARS-CoV-2, successfully validated for pharynx gargle and saliva samples
o CE-IVD marked rapid point-of-care finger-prick testing devices to identify past exposure to COVID-19
o Large Next Generation Sequencing (NGS) capacity and PCR/NGS Primer sets to detect Variants
• Completing our significant investment programme:
o Integration of prior acquisitions and finalisation of hub and spoke laboratory network
o Becoming fully digital
o Limited M&A activity
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H1 2021 Key financial highlights
Net debt/EBITDA4
Revenue, EUR m Adjusted1 EBITDA2 Margin
Free Cash Flow to Firm3, EUR m
Adjusted1 EBITDA2, EUR m
Adjusted1 EPS5
2,323
3,272
H1 2020 H1 2021
493
1,008
H1 2020 H1 2021
315489
H1 2020 H1 2021
2.5x
1.0x
H1 2020 H1 2021
1.03
3.05
H1 2020 H1 2021
21.2%30.8%
H1 2020 H1 2021
+41%
+104%+960bps
+196%-1.5x+55%
1 Adjusted results – reflects the ongoing performance of the mature and recurring activities excluding “separately disclosed items”
2 EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to
acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions
3 Free Cash Flow to the Firm (FCF-F) – Net cash provided by operating activities, less net capex
4 Leverage – net debt / PF12M adjusted EBITDA (corrected for the estimated impact of the cyber-attack in 2019)
5 Adjusted EPS – Basic EPS attributable to equity holders of the Company and hybrid capital investors
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FY 2020 Key financial highlights
Net debt/EBITDA5
Revenue, EUR m Adjusted2 EBITDA3 Margin
Free Cash Flow to Firm4, EUR m
Adjusted2 EBITDA3, EUR m
Adjusted1 EPS5
4,563
5,439
FY 2019 FY 2020
931
1,413
FY 2019 FY 2020
359
873
FY 2019 FY 2020
3.2x
1.6x
FY 2019 FY 2020
1.75
3.63
FY 2019 FY 2020
20.4%26.0%
FY 2019 FY 2020
+19%+52% +560bps
+107%-1.6x+144%
1 Year on year variation – 2020 vs 2019 on reported revenues and FCF-F, on adjusted EBITDA, EBITDA margin and EPS (as defined in footnote 6), comparable (corrected for impact of cyber-attack in 2019) for leverage
2 Adjusted results – reflects the ongoing performance of the mature and recurring activities excluding “separately disclosed items”
3 EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to acquisitions
as well as income from reversal of such costs and from unused amounts due for business acquisitions
4 Free Cash Flow to the Firm (FCF-F) – Net cash provided by operating activities, less Net capex
5 Leverage – net debt / PF12M adjusted EBITDA (corrected for the estimated impact of the cyber-attack in 2019)
6 Adjusted EPS – Basic EPS attributable to equity holders of the Company
7 Cash conversion ratio – FCFF/ Reported Net Profit
11 1
1
162% cash conversion7
11
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Eurofins’ Mission is to contribute to globalHealth, Safety & Environment with the best in bioanalysis
• Founded in 1987
• IPO on 24 October 1997 at €0.183
• Eurofins’ share price has multiplied by 527 times since IPO
(30% CAGR since IPO as of 30 June 2021 at €96.40)
• 55,000 employees across network of 1,000 independent
companies in over 50 countries operating 900 laboratories
• Over 200,000 validated analytical methods
• Over 450 million tests performed each year
• COVID-19 testing:
o Eurofins created global capacity to help over 20 million
patients monthly
o Eurofins global PCR testing capabilities in excess of
150,000 PCR tests daily
o Eurofins carried out over 25 million PCR tests in its own
laboratories
Food
Environment Pharmaceuticals
Clinical
Eurofins provides testing services in
four main areas that have a strong
impact on human health
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One-stop shopping (focus on few
global testing suppliers)
Outsourcing of internal laboratories
by industry
Demand for safe pharmaceuticals,
quality food and clean environment
Consolidation of the fragmented
laboratory market and scale effects
Risks linked to
global sourcing and
brand vulnerability
Increasing wealth
and quality of Life
Technological
progress
Advancing
globalisation
New analytical methods
and lower detection limits
New biotech products
Consumer
expectations for
protection
Secular Underlying
FundamentalsGeneral Market Drivers Laboratory Market Drivers
Drivers for high long-term above GDP market growth
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Innovative testing technologies developed in 2020 (1/2)
• We believe we are uniquely positioned to derive new scientific meaning for years to come. We have:
✓Capabilities in Environment, Food, Pharma and Clinical, reinforcing each other
✓ A unique fully digitised hub and spoke laboratory infrastructure
✓One of the world’s largest and most varied proprietary databases (biomarkers, DNA, drugs etc.)
✓ A pool of incredibly talented, motivated employees sharing the same vision, Testing for Life
✓ A decentralised entrepreneurial structure that demonstrates exceptional agility and speed of innovation
• Laboratories of the Group continued to make advances and innovations in multiple core business areas:
o BioPharmaceutical Testing Services
✓ Patented process to eliminate donor variability in Antibody-Dependent Cell-Mediated Cytotoxicity assays
✓OncoPanel™ Cell-Based Profiling Service, with 300+ genomically-diverse human cancer cell lines
o Eurofins Technologies
✓World’s first AOAC Performance Tested MethodsSM status for a screening method to detect aflatoxin M1 in milk commodities
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o Food and Feed Testing Services:
✓ World’s first official method for the identification of fructans certified by the AOAC and ISO bodies
✓ New accredited method for authenticating products containing agave syrup and inulin
✓ Novel full-service support programme for companies entering the “all-natural” infant formula market
o Environment Testing Services:
✓ World’s most sensitive heavy metal detection method in soil, water, food and pharmaceuticals
✓ Ground-breaking Sorbisense™ passive sampling system for ground/ surface water contamination detection
✓ Bespoke microplastic filtration processes and analysis, making testing commercially available
o Clinical Diagnostics Testing Services:
✓ Viracor TRAC™, a proprietary donor-derived cell-free DNA assay for detection of acute kidney rejection
✓ TruGraf Liver, a unique, non-invasive blood-based test to support liver transplant patients
✓ TRULO, a multi-centre observational registry study to evaluate post-transplant clinical outcomes in recipients of kidney transplants who are undergoing serial TruGraf testing
Innovative testing technologies developed in 2020 (2/2)
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Some of Eurofins’ Innovations: Becoming Leader in Non-Invasive Prenatal Testing (NIPT) in Europe and Japan
• Eurofins is the No. 1 player in the fast growing European NIPT market with ca. 150,000 non-invasive prenatal tests performed per year in
2020 & 2019 vs. ca. 100,000 tests in 2018
• Eurofins offer a very comprehensive and innovative portfolio of tests in that market – from trisomy 21 to rare chromosome abnormalities
(RCAs)
• In August 2020, Eurofins acquired GeneTech Inc. and became the market leader in NIPT in Japan
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Some of Eurofins’ Innovations: Onconext - Next Generation Oncology Diagnostics
• Onconext from Eurofins Genoma is an advanced molecular diagnostics solution for personalised
cancer care that uses state of the art technology
• The team comprises multidisciplinary professionals specialised in molecular biology and genetics
applied to the study of cancer
• Onconext includes an advanced suite of oncology panels:
o Onconext Risk: detects germline mutations involved in genetic predisposition to cancer
o Onconext Liquid: analysis of circulating tumor DNA (ctDNA) for cancer detection and
monitoring (liquid biopsy)
o Onconext Tissue: detects somatic mutations in tumor DNA (tDNA) from tissue samples coming
from traditional biopsies
• Those tests cover many of the most common cancer types including breast, ovarian/uterine,
melanoma, colon, gastric, pancreas, prostate, cerebral, renal, and
pheocromocytoma/paraganglioma
• Eurofins Genoma also develops tailor made solutions for its pharma customers and educate
oncologists in the clinical utility and use of Onconext in personalized medicine. The ultimate goal of
those projects is to make liquid biopsy a reality for patients. An example of this kind of project is the
NGBreast project run in Italy with 80 oncology teams (see www.NGBreast.it)
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Eurofins is present in several high growth Life Sciences markets critical to fight the COVID-19 pandemic
Eurofins’
position
Oligonucleotides Production and
Next Generation Sequencing (NGS)
#3 worldwide1
#1 in Europe1
Start 2000
In Vitro Diagnostic (IVD) products
Start-up
Start 2016
Bu
sin
ess l
ine
de
scri
pti
on
Eurofins Genomics' expertise in the synthesis of
oligonucleotides has made the company a European
market leader and a strong global player with several
fully automated production facilities around the world.
Eurofins Genomics is also an international leader in
Sanger and NGS sequencing services and a growing
gene synthesis provider. Eurofins Genomics produces
probes, primers and positive controls, key components
for RT-PCR testing of SARS-CoV-2, from 6 production
sites in U.S., Europe, India and Japan.
Whole genome NGS sequencing of the coronavirus
supports traceability of the source of outbreaks.
Eurofins Technologies’ subsidiaries Gold Standard
Diagnostics (GSD), NovaTec Immundiagnostica,
VIROTECH Diagnostics, Genescan Technologies,
Immunolab, Abraxis and Ingenasa offer an innovative
suite of IVD instruments, testing kits and testing
reagents for laboratories to carry out a large range of
clinical diagnostics for infectious diseases (Borrelia, Zika,
Chlamydia, CMV, Dengue, etc.).
GSD sells IVD instruments and testing reagents to other
Eurofins’ laboratories and to 3rd party laboratories.
Eurofins Technologies has developed a complete range
of 1,500 products for industrial and clinical applications
including COVID-19 full testing portfolio (RT-PCR,
serology/antibodies, antigen rapid tests, Lateral Flow
home test/Device (LFD)), from 10 production sites.
Listed or
larger
peers
ThermoFisher, GenScript, Swift Biosciences, Merck,
Danaher, etc.
Roche, Abbott, Becton Dickinson, Hologic, Beckman
Coulter, DiaSorin, Biomerieux, ThermoFisher, Tecan,
Idexx, etc.
1 To the best of Eurofins’ knowledge, based on data available to the Group
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Life Sciences and In Vitro Diagnostic (IVD) products to fight the COVID-19 pandemic (1/2)
Eurofins Technologies
• Full range of 1,500+ products/assays produced in 10 sites across 6 countries including 4 in Germany (4), and 2 in the U.S. (2):
• GSD NovaType III SARS-CoV-2 RT-PCR assay for the rapid detection of SARS-CoV-2 Variants of Concern including B.1.617 (“India”),
B.1.427/B.1.429 (“California/USA”), B.1.351 (“South Africa”) and P.1 (“Brazil”).
• Upgrade of COVID wastewater testing capabilities with variant detection capabilities
• Novatype RT-PCR – testing for fast variant identification
o Detect & ID RT-PCR assay, clinically validated for detecting variants such as B.1.1.7 and B.1.351, with a short turn-around time.
• GeneScan VIRSeek RT-PCR - testing kits and reagents for detection of SARS-CoV-2 in swabs of environmental surfaces
o Helps employers evaluate the effectiveness of their sanitation/hygiene measures as they battle COVID-19
• CE-IVD marked ELISA serology-based antibody testing kits - antibody testing for IgG, IgM and IgA, results provided in 2 hours
o Assays are compatible with many open high-throughput ELISA automation platforms and can therefore provide important cost-efficient
testing capacity at scale
o Eurofins has 5 subsidiaries producing serology kits - Gold Standard Diagnostics, VIROTECH Diagnostics, NovaTec Immundiagnostica,
Immunolab and Ingenesa
• Rapid test: lateral flow device (CE marked) – rapid test to detect total IgG, IgM and IgA antibodies at point-of-care
• CE-IVD marked Multiplex Real-Time RT-PCR kit – testing kit for the direct, active and qualitative pathogen detection of SARS-CoV-2,
providing results in approximately 2 hours
o Kit demonstrates excellent performance with a 100% Negative and Positive Percent Agreement (NPA, PPA) for all tested samples and
no cross-reactivity with other common widely spread coronaviruses
Serology tests allow tracking the
part of the population infected
and may help efforts to develop
vaccines and therapies
We offer accurate and fast
PCR kits to help healthcare
authorities combat the COVID-
19 pandemic
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Life Sciences and In Vitro Diagnostic (IVD) products to fight the COVID-19 pandemic (2/2)
Eurofins Genomics is helping
clinical diagnostic
manufacturers and laboratories
mitigate supply chain
disruptions
Eurofins Genomics
• Probes, primers and positive controls are key components required for COVID-19 PCR testing
• Eurofins Genomics is:
o Certified against ISO 9001, ISO 13485 standards and follows FDA cGMP regulations to produce oligonucleotides used in
IVD products
o One of the top 3 worldwide producers of probes, primers and positive controls, key components for RT-PCR testing of SARS-
CoV-2 with:
▪ 6 production sites in the U.S., Europe, India and Japan, able to ship plasmid controls within one day (12-18 hours
from order receipt)
▪ Successful ramp up of capacity of probes, primers and positive controls to meet growing demand
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ELISA high-throughput automation platforms
Gold Standard Diagnostics (GSD) offers industry-leading ELISA analysers
• Elisa Assays for Hormones and tumour markers, Veterinary diagnosis and Infectious diseases
including qualitative detection of IgG and IgA antibodies to SARS-CoV-2 virus in human serum
• Low total cost of ownership for instrumentation, consumables, customer support
• Innovative, industry-leading open platform instruments: ThunderBolt® and the Bolt
The Bolt
• One-plate, fully automated
ELISA+CLIA processor
• Compact machine, 96 sample
capacity
• Customisable, lower throughput,
cost-effective design
The ThunderBolt®
• Two-plate, fully automated
ELISA+CLIA processor
• Compact machine, 196 sample
capacity
• Capable of running multiple assays
in one single batch
Open platform ELISA instruments
are essential as governments and
healthcare authorities look to
significantly increase COVID-19
testing
Open platform ELISA instruments
help mitigate supply chain
disruptions – allowing users to
process a range of testing kits
from different manufacturers
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Strong Organic Growth in FY 2020 despite COVID-19 disruptions
• 19.3% organic growth in FY 2020
• Strong organic growth compared to peers & three large in vitro diagnostic device (IVD) suppliers
Peers FY 2020 Organic Growth1 Prominent IVD actors FY 2020 Organic Growth*
19.3%
40.6%
9.5%
14.0%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Eurofins Abbott(diagnostics)
Danaher Roche(diagnostics)
1 Based on public information, using each of the respective companies’ Alternative Performance Measures (APM) definitions
2 Organic revenue growth including COVID-19 related clinical testing and reagent revenues and not corrected for the EUR 62m estimated missing revenues from the cyber-attack of 2 June 2019 as disclosed in Annual Report 2020
19.3%
-11.8%
-6.0% -6.8% -6.5%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
Eurofins Applus BureauVeritas
Intertek SGS
2
2
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1 Corrected for EUR 62m estimated missing revenues from the cyber-attack impact of June 2019
2 Based on public information, using each of the respective companies’ Alternative Performance Measures (APM) definitions, H1 2021 vs. H1 2019 calculated by simple multiplication of the organic growth % for the two periods
3 TICS ex ERF = average organic growth of historic TIC leaders (SGS, Intertek and Bureau Veritas)
Even excluding COVID-19 clinical testing and reagents,
Eurofins organic revenue growth continues to significantly
outperform TIC industry peers
-15%
-10%
-5%
0%
5%
10%
15%
20%
H1 2020 H1 2021 H1 2021 vs. H1 2019²
1
3
CAGR H1 2019 – 2021
1
3
33
Average TICS ex ERF 3
1
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Fastest growing TIC company which became the leader of an industry with attractive and resilient organic growth
TICs Organic Revenue Growth2 (annual or H1)
-8%
-4%
0%
4%
8%
12%
16%
20%
24%
28%
32%
36%
40%
44%
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 H1 2021 H1 2019vs H12021ERF Total OG (FY 2020 & H1 2021) ERF (ex.Covid) TICs ex ERF
1 Source: Mayo Clinic
2 Source: Eurofins, Company websites TICS ex ERF = SGS, Intertek, Bureau Veritas. Organic revenue growth average if more than 1 year.
3 For 2019 and H1 2021, organic revenue growth corrected for estimated missing revenues of EUR 62m from cyber-attack of 2 June 2019
4 Organic revenue growth of Eurofins Group as a whole (excluding COVID-19 related clinical testing and reagent revenues)
5 Organic revenue growth of Core Business only (excluding COVID-19 related clinical testing and reagent revenues)
6 Eurofins relative organic revenue growth vs average organic revenue growth for TICS (ex ERF)
4
4
5
5
3
• Market Structural growth: est. ~1.5-2.0x Gross Domestic Product growth, globalisation, urbanisation, increasing need and demand for a healthier life and safer environment.Testing is the most efficient and cost effective way to prevent risks (e.g. Clinical Diagnostics tests = 4% of healthcare costs but used in 60% to 70% of medical decisions1),outsourcing trend
• Limited cyclicality: A large majority of Eurofins’ revenues are recurring, focused on resilient/defensive sectors (testing for life, i.e. testing food, pharmaceuticals, theenvironment and products that have an impact on our health as well as human clinical testing), diversified industry and geographical exposure
• In spite of its lower growth routine clinical testing component, Eurofins is outperforming its peers thanks to leadership positions achieved in its chosen less cyclical life sciencefocused markets
-4%
0%
4%
8%
12%
'00-'04 '05-'09 10-'14 15-'19
3
3
+n.s.%6
+680bps6
+60%6
+650bps6
+1,714%6
+1200bps6
+146%6
+380bps6+22%6
+120bps6
+19%6
+150bps6
TICs Organic Revenue Growth2 (5-year average)
Eurofins long term growth gap with TICs is increasing
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Infrastructure plan update: building a one-of-a-kind hub and spoke laboratories platform for global leadership in our markets to capture scale advantages
• Building large high throughput laboratory campuses (hubs of the hub and spoke structure)As of the end of 2020, Eurofins occupied more than 1,400 sites throughout the world (laboratories, offices, phlebotomy sites, storage/warehouses, etc.). The total net floor area of these sites amounted to about 1.4
million m2, of which more than 1.2 million m² is laboratory space.
2017 +53,000m2 2018 +64,000m2 2019 +65,000m2 2020 +35,000m2 2021-2022 +83,500m2 planned
Nantes, FR ext.
Livingston, UK
Madrid, ES
Ho Chi Minh City, VN
Gurgaon, IN
Bangalore, IN
Lancaster, PA ext.
Hangzhou, CN
Dayton, NJ
Hasselt, BE
Suzhou, CN
Taipei, TW
Wolverhampton, UK ext.
Planegg, DE ext.
Dungarvan, IE ext.
Melbourne, AU
Fresno, CA
Wesseling, DE ext.
Bangalore, IN
Katowice, PL
Vienna, AT ext
Shanghai, CN
Guangzhou, CN
Hamburg, DE ext.
Heerenveen, NL
Bucharest, RO
Santa Clara, US
Lancaster, US ext.
Madison, US
Pasadena, US
Taichung City, TW
Gunpo, KR
Llanera, ES
Barcelona, ES
Murcia, ES
Welshpool, AU
Lodz, PL
Guangzhou, CN
Lenexa, US
Tustin, US
Shanghai, CN
Girraween, AU
Feltham, UK
Aix-en-Provence, FR
Leola, US
Castellon, ES
Cork, IE
Mississauga, CA
Heerenveen, NL
San Diego, US
Glostrup, DK
Saverne, FR
Tallinn, EE
Lidkoping, SE
Lentilly, FR
Brugge, BE
Bron, FR
Les Ulis, FR
• Start-up labs opened in high-growth markets where acquisition prices are too high and/or acquisition options are limited
• Investments in developing state of the art bespoke IT solutions Total spend on new generation standardized tool
2016 2017 2018 2019 2020 Beyond 2020
€35m + Opex €32m + Opex €33m + Opex €32m + Opex €36m + Opex Investing to be the most digital TIC company
Values at Full Year 2016 2017 2018 2019 2020 Beyond 2020
SDIs €18.5m €43.5m €68.4m €97.8m €61.8m Target <€30m p.a.
SDIs/adjusted EBITDA 3.9% 7.8% 9.5% 10.5% 4.4%
• Consolidating inefficient smaller sites into large high throughput campusesSeparately disclosed items (SDIs) related to one-off costs and temporary/non-recurring losses (ie. integration, reorganisation, network expansion, start-ups) should decrease gradually.
2016 2017 2018 2019 2020 Beyond 2020
22 30 15 15 18 More limited, focusing mainly on Asia Pacific
23
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0
50
100
150
200
250
300
350
400
450
500
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020
Rev
en
ues (
€m
)Start-ups an increasingly attractive investment as weleverage our scale and experience
25 start-ups
178 laboratories start-ups between 2000 and 2020
1) Acceleration in laboratories start-up programmes
• 25 start-ups 2000-2009 (Programme 1)
• 18 start-ups 2010-2013 (Programme 2)
• 102 start-ups 2014-2018
• 15 start-ups opened in FY 2019
• 18 start-ups opened in FY 2020
• These 178 start-ups continued to contribute to the overall organic growth of the Group,
accounting for 3.2% out of the 19.3% organic growth achieved in FY 2020
Substantial acceleration offers tremendous growth potential
3) Start-up investments complement our acquisition strategy
• Alternative strategy in high-growth markets and emerging markets where acquisition
prices are too high and/or there are limited viable options for acquisitions
18 start-ups 135 start-ups
Where we are building start-up labs
Programme 1
(2000-2009)Programme 2
(2010-2013)
Programme 3
(2014-2020)
2) Commitment to invest for future growth
• Eurofins start-up programme represents a significant investment for the future and has a short-
term dilutive impact on the Group’s margins and cash flows.
• On average, start-up periods last for 2 to 3 years in mature markets and 2 to 5 years in emerging
markets in order to reach breakeven before they become profitable
• The EBITDA margin from our two most recent programmes (2010-2013 and 2014-2020)
improved significantly to reach levels in the mid-teens, but this is heavily influenced by the ability
of our start-up clinical laboratories to contribute to the fight against COVID-19 by facilitating
access to SARS-CoV2 tests.
Rest of World73
Europe72
North America33
*2019 revenues are corrected for the estimated cyber-attack impact
24
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Eurofins is experienced in successfully integrating acquisitions and is returning to its historic M&A run rate
• M&A has always been an integral part of Eurofins long-term strategy to build a unique bioanalytical testing platform for global leadership in its attractive high growth and very scalable markets
• From its IPO (Oct. 1997 to H1 2021 Eurofins has completed 411 acquisitions to consolidate the bioanalytical testing market, build leadership positions in its markets, expand its portfolio of testing methods and customers, generate economies of scale and create barriers to entry. Since 1 July 2021, Eurofins has completed 7 acquisitions including the acquisition of DNA Diagnostics Center (“DDC”).
• 2017 and 2018 were two exceptional years of M&A activity as unique opportunities became available during that time, including EAG Laboratories, Covance Food Solutions and TestAmerica
• Since 2019, Eurofins reverted back to its normal M&A activity. In the coming years the Group will focus more on operational excellence than M&A since the most strategic acquisitions have already been completed and the laboratory network in the U.S. for Food and Environment Testing is now largely completed
Eurofins has a long track record of acquiring and successfully integrating acquired businesses
10per year
18per year
56per year
26 26
12
127
235
347373
399 411
0
50
100
150
200
250
300
350
400
450
0
10
20
30
40
50
60
IPO-2010 2011-2016 2017-2018 2019 2020 H1 2021
Cu
mu
lati
ve n
um
ber
of
acq
uis
itio
ns
Av
era
ge n
um
ber
of
acq
uis
itio
ns
Average number of acquisitions completed Cumulative number of acquisitions completed
25
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Exceptional Business PerformanceStrong revenue growth
Illustration of Eurofins’ historical revenue growth
26
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Eurofins at the forefront of innovation with new COVID-19
related developments
1 Agreement available at https://www.defense.gov/Newsroom/Releases/Release/Article/2633565/memorandum-of-understanding-for-acquisition-support-signed-between-the-departme/
• Two important milestones reached:
o 25m+ COVID-19 PCR tests completed since the start of the pandemic
o 125,000+ SARS-CoV-2 samples from 23 countries sequenced since its press release on 28th December 2020 announcing the launch of a new ARTIC Next Generation Sequencing (NGS) service
• Clinical Enterprise awarded U.S. Government agreement1 to provide national COVID-19 testing opportunities to 24m+ people in K-8 schools, underserved populations and congregate settings such as homeless shelters
• Eurofins Viracor launched new tests, including COVID-19 SARS-CoV-2 inSIGHT™ T Cell Immunity Testing to support healthcare providers with the supply of critical insights to aid in treatment decisions
• Eurofins Genomics launched SynPure Linear Polyacrylamide for COVID testing and other research and development applications
• Eurofins Technologies continued to develop diagnostic solutions for COVID-19, particularly in response to emerging mutations:
o GSD NovaType III SARS-CoV-2 RT-PCR assay for the rapid, one-step detection of SARS-CoV-2 Variants of Concern
o Upgrade of COVID wastewater testing capabilities with variant detection capabilities
• EmpowerDX direct-to-consumer, FDA-authorised COVID-19 Home Collection PCR kit were launched on Amazon U.S. and in all Rite Aid stores across 17 states in the U.S.
• EmpowerDX first to receive FDA-emergency use authorization for its at-home nasal PCR test for children three years and older
27
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SAFER@WORK™ update
1 Available at https://www.eurofins.com/covid19-travel-regulations-testing-stations/
• Through its SAFER@WORK™ programmes, Eurofins continues to help businesses maintain or re-start operations and to enable safe and secure travel and leisure
• Over 3,250 SAFER@WORK™ contracts signed or in final stages across 36 countries (as of June 2021)
• Eurofins developed a broad network of testing centres to facilitate summer travelling, including:
o Around 1,000 testing centres across Europe covering major travelling hubs and providing testing accessibility in a broad variety of locations
o Mobile testing centres in France, Belgium and Germany to process PCR tests
o Network supported by intuitive web-portal1 where travelers can book appointments and access their testing information
• Further partnerships signed, including with:
o Several cruise lines
o Hotel Groups, to provide their guests with access to convenient and affordable PCR testing
o Airports and private jet operators, to offer exceptional level of safety to passengers
• As previously outlined, revenues from these contracts are dependent on employees coming back to work and travel and leisure activities recommencing and are expected to be delivered in H2 2021
28
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COVID-19 Test Strategy to help the return to normality
Key Highlights
• Developed a comprehensive offering to fight COVID-19
• Developed solutions for the detection of SARS-CoV-2 on environmental surfaces
• Eurofins was the first commercial European laboratory to receive an EUA for an at-home nasal PCR test for young children
• EmpowerDX At-Home COVID-19 Nasal PCR and gargling self-collection kits are painless and provide online results within 24h
• Safer@WorkTM can support a multifaceted view on infection vectors and will likely play a critical role as companies start looking to enable their employees to get back to their workplace safely
U.S. based example:
29
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning: Overview of Markets Served & Structure
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
30
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Leading global and local market positions in attractive high-growth markets* (1/2)
*Only includes the outsourced part of the market. Estimate to the best of Eurofins’ knowledge, based on data available to the Group
**Global Market Insights, August 20, 2019 (2025 market size estimate of USD 350bn converted at 31/12/2019 USD/EUR exchange rate of 0.89)
Testing for
Pharma/Biotech/Agrosciences
Food & Feed Testing Environment Testing Clinical Diagnostics
Eurofins
position
N°1 to N°3*
worldwide
Start 2000-2005
N°1*
worldwide
Start 1987
N°1*
worldwide
Start 2000
Start-Up
Start 2014
Total market
size estimate* ~ € 6bn ~ € 4bn ~ € 5bn
➢ € 312bn** by 2025
➢ Eurofins’ focus Genomics/ Esoteric Testing: € 5-
10bn*
Segment
description
Full range of laboratory services for
biopharmaceutical product development, quality
testing, discovery and pharmacology services,
genomic sequencing and genotyping as well as
phase I – IV clinical research programs
Ensuring food quality and preventing contamination
and foodborne illnesses caused by pathogens and
other harmful substances.
Expertise includes a.o. testing for dioxins and
organic contaminants, pesticides, mycotoxins,
allergens, authenticity, pathogens and vitamin
Analysis of drinking water, groundwater, seawater,
soil, sediment, air, etc; using analytical methods to
assess their purity/absence of polution and impact on
health and the environment
Biological samples (blood, urine, etc.) analysis to
diagnose diseases and aid in medical decisions
Key clients More than 90% of top 20 largest global pharma
companies are customers
The largest global food and beverage producers are
clients
Industrial companies, water plants, local councils,
construction companies, etc.Doctors, hospitals, health insurers, patients
Listed peers or
large peersPharmaceutical Product Development (PPD), ICON,
Charles River, IQVIA, LabCorp/Covance, Wuxi,
Evotec etc.
SGS, Bureau Veritas, Intertek, etc. ALS, SGS, Bureau Veritas, Idexx, etc.
Guardant Health, CareDx, Natera, Exact Sciences,
Myriad Genetics, NeoGenomics, Invitae, Genomic
Health, Foundation Medicine, LabCorp, Quest, Sonic
Healthcare, Synlab, Unilabs, Cerba, etc.
31
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Leading global and local market positions in attractive high-growth markets* (2/2)
*Only includes the outsourced part of the market. Estimate to the best of Eurofins’ knowledge, based on data available to the Group
**Global Market Insights, August 20, 2019 (2025 market size estimate of USD 350bn converted at 31/12/2019 USD/EUR exchange rate of 0.89)
Testing for
Pharma/Biotech/Agrosciences
Food & Feed Testing Environment Testing Clinical Diagnostics
Eurofins
position
N°1 to N°3*
worldwide
Start 2000-2005
N°1*
worldwide
Start 1987
N°1*
worldwide
Start 2000
Start-Up
Start 2014
Total
market
size
estimate*
~ € 6bn ~ € 4bn ~ € 5bn
➢ € 312bn** by 2025
➢ Eurofins’ focus Genomics/ Esoteric
Testing: € 5-10bn*
Eurofins
ranking
N° 1 Worldwide in Pharma Products Testing
N° 1 Worldwide in Discovery Pharmacology
Services
N° 1 Worldwide in Agroscience CRO
services
Among top 5 global providers of central
laboratory and genomic services
N° 1 or 2 in most segments/ countries in
Europe and the USA
N° 1* worldwide
N° 1 in the USA
N° 1 in Europe
N° 1 in Germany
N° 1 in France
N° 1 in Nordics/Scandinavia
N° 1 in Benelux
N° 1 in the UK & Ireland
N° 1 in Spain
N° 1 in Brazil
N° 1 in Agro Testing EU
N° 1* Worldwide
N° 1 in the USA
N° 1 in Europe
N° 1 in Germany
N° 1 in France
N° 1 in Nordics/Scandinavia
N° 1 in Ireland
N° 1 in Benelux
N° 1 in Taiwan
N° 2 in Spain
N° 2 in Japan
Establishing leadership in targeted higher-
growth innovative niche areas (e.g.
genomics, infectious diseases, etc.) of the
clinical testing market, mainly in the U.S.
and Europe, as well as market access
through local laboratories in many large
markets worldwide to distribute advanced
tests.
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Genomics Discovery Pharmacology
Pre-clinical/ Early Development
Clinical (Central Laboratory/
Bioanalytical)Sequencing
Oligonucleotides
Pharmacogenomics
Transcriptomics
Genotyping
SNP-analysis
Pharmacology
Bioanalytical Analysis
Translational Medicine
Phase I Studies
Biomarkers
Bioanalysis
Immunogenicity
Proteomics
Microbiological and Anti-
infective analysis
Bioavailability
Bioequivalence
High-throughput-
screening
Molecular- Pharmacology
Cell-based Assays
In Vitro Screening
In Vitro Profiling
In Vivo Safety
In Vivo efficacy
BioPharma Products Testing
Pharmaceuticals,
Biologics, Medical
Device: Safety,
Characterization,
Quality Control,
Process Development
Hygiene Monitoring
Packaging
Development & Manufacturing
(CDMO)Complex API
Development
Multi-Step Synthesis
Cytotoxic and Highly
Potent
DS and DP
Manufacturing
Eurofins Pharma Services in more detail
Spanning the entire drug development cycle
Abcam, etc.Evotec, Abcam,
Albany Molecular Research, etc.
Evotec, Parexel, etc. Albany Molecular
Research, etc.
Albany Molecular Research,
Lonza,Cambrex etc.
SGS, Wu Xi App Tec, etc.
U.S
. li
ste
d
pe
ers IDT/Danaher,
Genewiz/BrooksCharles River
Catalent, Charles River, ICON, IQVIA,
LabCorp, SyneosHealth, PPD
Charles River, ICON, IQVIA, LabCorp,
Quest, Syneos Health, PPD
Catalent, Charles River
Charles River, PPD
Oth
er
pe
ers
33
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Building leadership positions in an industry with significant network effects and competitive advantage for the market leader
High barriers to entry
Scale
matters
Generating synergies
Reinforcing leadership positions
• High level of investment and innovation required to build and efficiently run a network of
modern laboratories (buildings, equipment, IT infrastructure and solutions, talent)
• Clients seldom change laboratory supplier (high switching costs)
• Clients increasingly expect a complete range of tests at very short turnaround times
(TATs)
• Unique ability to offer our clients access to a portfolio of over 200,000
different tests across more than 50 countries thanks to state-of-the-art
global laboratory network
• Scale & volume required for short TATs on complex tests
• Unique ability to offer one-stop shops to our clients thanks to advanced
bespoke IT solutions
• Hub and spoke model to generate scale for complex tests
• Network effect/cross-selling synergies
• Site specialization drives cost synergies (efficiency – each method requires heavy investment
and thus needs to be amortized over large volumes, purchasing power)
• Innovation/R&D synergies
We have been building a hard to replicate laboratory platform
Some competitors who tried to diversify into our sector are starting to exit some of our markets
(LabCorp, Exova, TÜV Rheinland, Applus etc.). Smaller/mid-size players lose market share
34
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Building a unique platform for global leadership in our attractive high growth markets with large network effects
High barriers to entry exist in Eurofins’ markets. Significant investments are required to build and efficiently run modern laboratories. Clients seldom
change laboratory supplier.
• Constant scientific breakthroughs lead to novel equipment and testing methods. Methods often take years to be developed and validated
• Clients increasingly expect a complete range of tests – Food testing is over 130,000 validated tests already.
• Stickiness of business. Switching costs are high. Clients often have decade-long stable relationships with their laboratory of choice.
Bioanalytical testing is a highly scalable activity
• Economies of scale in testing and logistics are huge and create a large cost advantage for the market leader vs. competitors.
In order to unlock economies of scope and scale, a global standardized network of laboratories is needed
• Developing a state-of-the-art global laboratory network takes decades and requires very large investments:
• Advanced bespoke IT solutions are required to offer a one-stop-shop for clients around the globe providing them access to the full range of services offered by all
laboratories in the network
• Automation, artificial intelligence (AI) and proprietary reagents and methods are very expensive and these investments require large scale to be justified.
Eurofins’ 2020 growth plan, aimed at building a leading one of a kind global laboratories platform in its chosen high growth markets, is well underway
• For over 15 years, Eurofins has been consistently investing more than its peers to develop a hard-to-replicate network of laboratories and a very broad portfolio of
advanced bio-analytical tests and more non time critical tests to its large hub labs.
• These large investments, aimed at long-term value creation, impact Eurofins’ short term cash flow generation and margins
• Between 2010 and 2020, Eurofins developed one-of-a-kind ‘hub and spoke’ laboratory infrastructure for its leading markets by consolidating less efficient and smaller sites
into large, high-throughput Centres of Excellence (or ‘hubs’), in order to unlock the potential of economies of scale and the large cost advantage available to the market
leader vs. competitors. Eurofins has invested much more than its peers in its unique network of laboratories and state-of-the-art IT solutions, putting its growth plan to
develop market leadership platform well into motion.
• Looking beyond 2020, when Eurofins’ five-year growth phase will have completed in 2021, the Group believes it will be well placed to leverage these market leadership
positions, in combination with its global network of laboratories, scale and scientific excellence, to significantly improve its cash flow generation and profitability to create
further significant value.
35
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New Orleans, LA
Madison, WI
Indianapolis, INDes Moines, IA
Since 2015, Eurofins has built a one of a kind hub and spoke laboratories infrastructure platform in the U.S. Food testing market – Hub and spoke model allows for cost-effective and timely delivery of high quality testing results
Eurofins is structuring its unique network of laboratories using the hub and spoke model embraced by the largest global logistics
companies:
• Centralise complex chemistry and molecular testing at large hub laboratories
• Carry out time critical microbiology testing and sample collection/courier routes at/around smaller satellite local (spoke)
laboratories
= Chemistry hub/campus = Specialty laboratory (Milk or Nutraceuticals) = Microbiology laboratory
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Building the Platform – Eurofins 2012 - Eurofins 2020
2012 2015 2019 20202012-2020 ∆
+8 years
Revenues (€ m) 1,044 1,950 4,563 5,439 23% CAGR
Employees
(average FTE)10,890 18,382 43,320 50,000 21% CAGR
Number of laboratories
(year-end)170 225 >800 >800 Over 4x
Number of countries 34 39 >50 >50 >16
Number of business
lines with global
leadership
4 (Food and feed,
Environment,
BioPharma product
testing, Drug
discovery services)
4 (Food and feed,
Environment,
BioPharma product
testing, Drug discovery
services)
7 (Food and feed, Environment,
BioPharma product testing,
Drug discovery services,
Agroscience CRO services,
Specialised Material Sciences
testing, Cosmetics Testing)
7 (Food and feed, Environment,
BioPharma product testing,
Drug discovery services,
Agroscience CRO services,
Specialised Material Sciences
testing, Cosmetics Testing)
+3
Number of future
oriented business lines
1 (Genomics) 2 (Genomics, Clinical
Genetics)
5 (Genomics (#2 globally),
Forensics (#1 in Europe),
Clinical Genetics, Pharma
CDMO, Eurofins Technologies)
5 (Genomics (#2 globally),
Forensics (#1 in Europe),
Clinical Genetics, Pharma
CDMO, Eurofins Technologies)
+4
37
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2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Denmark: Food and Environment Testing
Sweden, Norway: Food and Environment Testing
Global: BioPharma Product Testing
France Environment Testing
Brazil: Food Testing
Europe: Agro Testing
Global: Discovery Pharmacology Laboratory Services
Australia, New Zealand: Food & Environment Testing
UK & Ireland: Food Testing
Austria: Environment Testing
France: Specialized Clinical Diagnostics
Europe: Forensics Testing
Global: Genomic Services
Global: Agroscience CRO Services
Finland: Environment Testing
USA: Specialized Material Sciences Testing
USA: Food Testing
France: BioPharma Product Testing
Germany: BioPharma Product Testing
USA: Environment Testing
Spain: Food Testing
Global: Cosmetics Testing
Netherlands: BioPharma Product Testing
Ireland: Environment Testing
Spain: Environment Testing
Japan: Genomics
Japan: Environment Testing
Japan: Non-Invasive Prenatal Testing
Taiwan: Environment Testing
New Markets
X
*To the best of Eurofins’ knowledge, based on data available to the Group
Eurofins is the leader in most of its markets and continues to build global & local leadership positions* in markets where scale matters
= Market Entry
Eurofins already has long-standing N°1 or N°2 positions in its historic markets, Europe and North America, across its major business lines:
Food, Environment, BioPharma, Agroscience, Genomics, Forensics
38
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Overall, a large majority of Eurofins’ revenues come from markets where the Group has established global leadership positions
Business Line Global leadership position
Food & Feed testing ✓
Environment testing ✓
Clinical Diagnostics
BioPharma Product Testing (BPT) ✓
Consumer Product Testing
Early Development & Central Laboratory
Agroscience CRO Services ✓
Specialised Materials Science testing ✓
Discovery Pharmacology Laboratory Services ✓
Genomics & Forensics
Technology Services
Cosmetic Product Testing ✓
Total % of 2020 proforma revenues by business lines with global leadership positions* 70%
These global
leadership
positions are
the basis to
create high
barriers to
entry,
significant
network
effects and
competitive
advantage for
Eurofins
*Excluding COVID testing
39
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International Monetary Fund(Estimates as of July 2021)
Eurofins market presence(To the best of Eurofins’ knowledge, based on data available to the Group)
Country GDP ($tn) % of world's GDP Eurofins presence Food testing Environment testing Biopharma services Clinical DiagnosticsEU ✓ #1 #1 #1 ✓
USA 22.7 24.2% ✓ #1 #1 #1* ✓
China 16.6 17.7% ✓ ✓ ✓
Japan 5.4 5.7% ✓ ✓ #1/2 ✓ ✓
Germany 4.3 4.6% ✓ #1 #1 #1 ✓
UK 3.1 3.3% ✓ #1 ✓ ✓ ✓
India 3.1 3.2% ✓ ✓ ✓ ✓ ✓
France 2.9 3.1% ✓ #1 #1 #1 #1**Italy 2.1 2.2% ✓ ✓ #1* ✓
Canada 1.9 2.0% ✓ ✓ ✓ ✓
South Korea 1.8 1.9% ✓ ✓ ✓
Russia 1.7 1.8%Australia 1.6 1.7% ✓ ✓ #2 #1*Brazil 1.5 1.6% ✓ #1 ✓ ✓
Spain 1.5 1.6% ✓ #1 #2 #1* ✓
Mexico 1.2 1.3%Indonesia 1.2 1.2%Netherlands 1.0 1.1% ✓ #1 #1 #1 ✓
Switzerland 0.8 0.9% ✓ ✓ ✓
Saudi Arabia 0.8 0.9%Turkey 0.8 0.8% ✓ ✓ ✓
Taiwan 0.8 0.8% ✓ ✓ #1 ✓
Iran 0.7 0.7%Poland 0.6 0.7% ✓ ✓ ✓
Sweden 0.6 0.7% ✓ #1 #1 #1Belgium 0.6 0.6% ✓ ✓ #1 ✓ ✓
Total top 25 79.3 84.5% 20 20 17 16 11Eurofins present in 20 countries of world's top 25:
73.7 78.6%
+ other countries 7.7 8.2%Eurofins present in more than 50 countries:
81.5 86.8%
Eurofins is already present in countries generating over 86% of the world’s GDP… but still has lots of room to grow
…and penetrates
the world’s Top
25 economies
with more and
more of its
services!
40
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1987 – H1 2021: In only 33 years we built a unique global network
From 1 laboratory in Nantes (France) in 1987 to 900 laboratories around the world in 2021!
From 4 employees in 1987 to 55,000 in July 2021!
Now operating in over 50 countries!
Eurofins ‘ site map at 31 December 2020
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Global trends in regulation support the business
• Strongly regulated markets (EU, U.S.) are still amending and adding regulations
• Eastern European countries catching up with EU regulations
• Fast development of regulation in Asia
• Regulation used for support of trading blocks (e.g. EU, NAFTA, ASEAN)
Major pieces of legislation Key areas of food regulation
• European Food Regulation (EC)178/2002
• U.S. increasing government evaluations of organ procurement
organizations aimed at increasing the number of organ transplants
• EU new regulations on testing medical devices
• European REACH directive
• U.S. Country of Origin Labelling (COOL) law
• PRC Food Safety Law in China
• Food Safety Modernization Act (FSMA) in the U.S.
• Comprehensive Review of Food Labelling Law and Policy in
Australia & New Zealand
• More stringent regulations around per- and
polyfluoroalkyl substances (PFAS)
• Food imports
• Labelling (e.g. allergen, origin label, reference
intakes)
• Foodstuffs (marketing standards for beverages,
meat, fish, dairy products)
• Pesticides
• GMO & GM products
• Additives (vitamin & mineral fortification,
flavourings, sweeteners, enzymes)
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Outsourcing adds to market growth Examples of laboratories outsourced to Eurofins
MML Alrijne Clinical Diagnostics Netherlands
Labser Food and Feed testing Spain
Axéréal & Terrena Galys agricultural laboratories France
Signify Materials Analysis and Reliability The Netherlands
Astellas Astellas Analytical Science Labs Japan
Danish Hydrology Inst. Official water reference lab Scandinavia
Suez/Sita Envirolab The Netherlands
Danish farmers association Steins’ water/environment laboratory Denmark
Lyon University Hospital Phase I Activity France
Austrian Research Institute Food testing Austria
Clermont University Mineral water analysis France
Company Outsourced Activity Country
Raisio Group Food product testing Finland
Mondi Environmental, paper/pulp testing Slovakia
DLG Group Food and feed producer Denmark
Miljølaboratoriet Environmental testing network Denmark
BASF/QTA Environmental, chemicals U.S.
MWH Global Environmental, water-testing U.S.
TÜV SÜD Dioxin Analysis Germany
Cranswick plc Food testing UK
Danone Infant and clinical nutrition analysis Germany
= Food and feed = Environment = BioPharma = Specialised Material Sciences = Clinical Diagnostics
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Meaningful industry consolidation is underway
Source: Mergermarket, Company announcements, Bloomberg Terminal, Estimates based on publicly available information
Selection of recent significant transactions in the testing industry
Date Company Acquirer Geography Sales (€m) EV (€m) EV/Sales (x) EV/EBITDA (x)
2020
November Synlab Analytics & Services SGS EU 202 550 2.7x 16.2x
AVERAGE 2.7x 16.2x
2019
November LGC Cinven and Astorg UK 525 3,519 6.7x 17.1x
July Genomic Health Exact Sciences US 507 2,816 5.6x 25.0x
July Quotient Sciences Permira UK 129 705 5.5x 17.0x
July Just Biotherapeutics Evotec US 18 80 4.5x N/A
April Paragon Catalent US 178 1,067 6.0x 21.4x
AVERAGE 5.7x 20.1x
2018
September Genewiz Brooks Automation US 102 383 3.8x N/A
July Halo Cambrex US 87 353 4.0x 15.7x
March BIO7 Cerba FR 110 500 4.5x N/A
March Integrated DNA Technologies Inc. Danaher Corp US 163 1,628 10.0x N/A
AVERAGE 5.6x 15.7x
2017
September Chiltern International Labcorp US 133 990 7.4x N/A
June EUROIMMUN PerkinElmer DE 166 1,139 6.9x 32.0x
May Patheon Thermo Fischer NL 1,712 6,424 3.8x 18.1x
April Exova Element Materials Tech UK 401 743 1.9x 9.4x
January Cerba PSP, Partners Group FR 630 1,800 2.9x 12.0x
AVERAGE 4.6x 17.9x
2016
December Unilabs Apax IX CH 675 1,500 2.2x 11.8x
November Cepheid Danaher US 485 3,770 7.8x N/A
January WIL Research Charles River US 194 527 2.7x 13.0x
AVERAGE 4.2x 12.4x
2015
December Element Materials Technology Bridgepoint UK 270 900 3.3x 12.2x
December LGC KKR UK 358 1,237 3.5x 14.2x
October Professional Service Industries (PSI) Intertek US 227 290 1.3x 7.6x
July Amedes Antin Infrastructure Partners DE 399 775 1.9x 9.7x
June Environmental Resources Mgmt Omers Private Equity UK 835 1,511 1.8x 14.4x
June Bio-Reference Laboratories Opko Health US 787 1,337 1.7x 12.6x
June Synlab (Majority stake) Cinven DE 756 1,750 2.3x 12.1x
May Labco Cinven FR 650 1,200 1.8x 9.1x
AVERAGE 2.2x 11.5x
2014
November Covance Labcorp US 2,465 5,320 2.2x 16.5x
June Zygo Corporation AMETEK US 142 257 1.8x 13.0x
February Maxxam Analytical International Corporation Bureau Veritas SA CA 179 433 2.4x 12.5x
January Diagnósticos Da América Sa Cromossomo Participações Ii Sa BR 1,009 1,420 1.6x 8.7x
AVERAGE 2.0x 12.7x
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Eurofins’ strategy aims at building long lasting competitive advantage in very attractive markets
• Extensive expertise in local regulations for all major markets, and
one-stop contact for compliance in multiple countries
• Globally reliable standards of high quality and consistency
• International key accounts management
• Internet-based transactions and access to testing results
• Competence Centres & R&D activities
• Proprietary technologies (e.g. proof of origin, virus
syndromic panels, authenticity testing, etc.)
• Continuous development/acquisition of advanced
technologies
• Best in class state of the art laboratories
Leading technology Quality of customer service
One stop shop Pure-play laboratory operator
• International network operating across more than 50 countries
• Vast technological portfolio with more than 200,000 validated
methods
• Over 450 million tests performed per year
• But one contact person for each customer at their local laboratory
• Industrialised processes, bespoke IT solutions
• Unrivalled expertise accessible to all customers
• Continually expanding geographical coverage
• Proven operating model that can be rolled-out in various/multiple
markets
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Credit Suisse report shows that family-owned businesses outperform their peers*
…supported by superior growth and Profitability
Revenue and EBITDA growth is stronger, EBITDA margins are
higher and cash flow returns are better.
Family-owned companies also appear to have a greater focus on
innovation as research and development (R&D) spending is
higher.
Family-owned companies have a
longer-term and conservative focus
Company interviews show: family-owned companies have above-
average-quality characteristics than non-family owned peers.
Family-owned companies on average tend to favor capital
preservation and long-term value creation rather than more
short-term gains.
Family-owned companies on average tend to have slightly better
results in terms of ESG scores than non-family-owned companies.
Family-owned companies outperform non-family-owned peers…
Family-owned companies outperformed in every region (excess returns in Asia ex Japan broadly in line with those in Europe, given an
annual average outperformance since 2006 of 500 basis points) and in every sector.
*Source: Credit Suisse Research Institute: The Family 1000: Post the pandemic ; September 2020
46
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Biopharma Testing Services
▪ Food Testing
▪ Environment Testing
▪ Clinical Diagnostics
▪ Other
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
47
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The Pharma testing market is both healthy and full of potential
• The increasing complexity of clinical trials leads to increasing amounts of diagnostic procedures
performed per patent
• Regulatory bodies (e.g. FDA) are demanding more study data to improve safety
• New wave of biologics require more testing
• Clinical trial processes are becoming increasingly rigorous to ensure drug efficacy
• The spend per drug trial is rapidly increasing
Need for big pharma
companies to expand
new drugs pipelines
Rapid technological change &
increasing complexity in testing
require ongoing investment in
technology & expertise
Greater trial complexity & size will increase likelihood of using CROs
48
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Underlying trends are intact for continued growth
• The Drug Discovery market is growing rapidly thanks to increasing R&D budgets,
applicability of big data and artificial intelligence and cost optimisation
requirements. It is estimated to grow at a CAGR of 14% between 2020 and 2025
to reach USD 21.4bn by 2025*
• In 2020 the FDA approved 53 novel drugs and 27 in H1 2021**
• The FDA has approved 29 biosimilars*** since 2015
o Drug approvals fuel reinvestment across the R&D value chain
• Record cash on biotech balance sheets provides R&D funding through 2020
Source: EvaluatePharma, May, 2019
• Sponsors outsource drug development to:
- Reduce their fixed cost base
- Access competencies that they do not have in-house
- Access experience and regulatory expertise in new geographies
• R&D outsourcing rising rapidly:
- In 2018 drug sponsors spent ca.$86bn on outsourced R&D services surpassing spend on internal staff and infrastructure by ca.$20bn, suggesting over 56%
of R&D services are now outsourced by drug sponsors
- According to the Tufts Center for the Study of Drug Development, study initiation cycle time is 77 days faster for CROs identifying and managing new
investigative sites, compared to studies managed directly by drug sponsors
- R&D pipelines continue to grow and a growing number of smaller pharma/biotech companies are entering the market
Source: Tufts Center for the Study of Drug Development (Tufts CSDD), 5 Mar, 2019
* https://www.marketsandmarkets.com/Market-Reports/drug-discovery-services-market-138732129.html?gclid=EAIaIQobChMIq9j7kaOA8gIVpCs4Ch1jmQK8EAAYASAAEgJ9QfD_BwE Note: this study includes markets and sub segments not served by Eurofins
** https://www.fda.gov/drugs/new-drugs-fda-cders-new-molecular-entities-and-new-therapeutic-biological-products/novel-drug-approvals-2021 - *** https://www.fda.gov/drugs/biosimilars/biosimilar-product-information
Worldwide Drug R&D Spending ($ bn)
49
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More than 90% of the top 20 largest global biopharma companies are clients of Eurofins
Top 10 global
biopharma companies**
Johnson & Johnson (US)
Roche (CH)
Pfizer (US)
Bayer (DEU)
Novartis (CH)
Merck (US)
GlaxoSmithKline (UK)
Sanofi (FR)
AbbVie (US)
Abbott (US)
Global CRO Market Outlook*
Eurofins biopharma locations
Eurofins’ site map as of December 2020
*Source: CRO Industry Primer, 20 June 2016, Credit Suisse **Source: https://www.pharmapproach.com/top-10-pharmaceutical-companies-in-the-world/
50
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Biopharma Testing Services
▪ Food Testing
▪ Environment Testing
▪ Clinical Diagnostics
▪ Other
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
51
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Consumers’ increasing
awareness and demand
for safe and high quality
food
The Food testing market enjoys robust growth drivers
▪ Compels industry to strengthen its testing programs
▪ New products (GMOs, new packaging, etc.) create need for new tests
▪ Governments increase regulations on food control
▪ Brands have become more global and vulnerable to contaminations
▪ Transparency and traceability are becoming the priorities
▪ Increasing pressure on producers and manufacturers to invest in testing
Food scares and
crises, widely
covered in the media
Demand for a high quality, state-of-the-art, international network of laboratories
Globalisation: Raw
materials sourced
from countries with
different QC
practices
Outsourcing of
industry’s internal
or state- owned
laboratories
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Retail & Distribution
Eurofins’ Food & Feed testing offering is the most comprehensive in the market
Agricultural
production, product
development
Production
Dioxins Veterinary drug
residues
Organic residues POPs
Heavy metals Irradiation
Quality ControlVitamins
GMOLabelling
PurityNutritional
Microbiology Sensorial
Authenticity Pesticides
Mycotoxins Allergens
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High profile food scares have expensive consequences for producers…
YearBrand /
CountryContamination Impact Cost Source
2021 Tyson Foods Inc. Listeria contaminating ready-to-eat
chicken products
Recall of some 8,955,296 pounds of ready-to-eat chicken products due to a potential contamination with Listeria monocytogenes Unquantified The New York
Times
2019 Wilke Waldecker
Fleisch- und
Wurstwaren
Listeria outbreak contaminating
meat products
Over 1,000 items recalled across European retailers/supermarkets
5 deaths after contracting listeria infections
Unquantified Food Safety News
/ The Brussels
Times
2018 USA JBS
Tolleson
Listeria and salmonella in ready-to-
eat salads and premade food items
About 6.5 million pounds of beef was recalled by Arizona-based meat producer JBS Tolleson. Millions of pounds of ready-to-eat salads
and premade food items at several big name retailers such as Harris Teeter, Kroger, Whole Foods, 7-Eleven, Trader Joe's and Walmart
have been recalled due to the potential risk of listeria and salmonella contamination.
Unquantified USA Today
2017 Europe Fipronil in European eggs Farms shut down in the Netherlands, Belgium, Germany and France. Supermarkets have also withdrawn millions of eggs from sale Unquantified BBC news
2015 USA Chipotle E. coli outbreak at restaurants in
multiple states
53 people sick, 22 hospitalized in 9 states across the U.S. 15% decline in like-for-like sales during the period ~ USD 8bn
Market value
lost
CNN
2013 Europe Beef products contaminated with
horse meat
Sales of frozen burgers plunged 43% and frozen ready meals fell 13% in the UK between 21 Jan – 17 Feb, 2013, at the height of the
scandal
~ €360m
Market value
lost for Tesco
The Guardian
2011 Germany Dioxins in eggs, poultry and pork About 3,000 tons of feed contaminated with oil intended for use in bio-fuels, 4700 farms closed, revenues lost, tightening regulation Unquantified BBC News
2009 Nestlé E. coli in cookie dough 70 people sick, 25 people hospitalized, job losses, withdrawal of 86 million "cookies-worth”, court proceedings initiated Unquantified CNN Health
2008 Kellogg’s,
Unilever, General
Mills
Salmonella in peanut butter 9 dead, 683 people sick, global recall of peanut butter and related products (1,600 types of products involved) ~ USD 100m
Est. only for
Kellogg’s
Bloomberg
2008 Irish pork Dioxins Recall of Irish pork products, job losses, destruction of 100,000 pigs > €300m Irish Exporters
Association
2008 Sanlu/ Fronterra
+ global brands
Melamine in dairy products 50,000 infants ill, 6 deaths, global recall of dairy and related products, criminal charges in China Unquantified BBC News
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Eurofins is meeting the demands of global players for high quality testing
The largest global food & beverage producers and retailers are clients of Eurofins
Food and Beverage Retailers
Nestlé Switzerland
PepsiCo USA
Unilever UK /Netherlands
Mars USA
Coca-Cola USA
Danone France
Kraft Heinz USA
McDonalds USA
Kelloggs USA
Pernod Ricard France
Wal-Mart Stores USA
CostCo USA
Kroger USA
Lidl Germany
Aldi Germany
Carrefour France
Tesco UK
ITM Enterprises France
Metro AG Germany
Casino Guichard France
Eurofins’ site map as of December 2020
55
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Biopharma Testing Services
▪ Food Testing
▪ Environment Testing
▪ Clinical Diagnostics
▪ Other
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
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▪ Increasing demand by citizens for a clean environment
▪ EU expanding regulation (e.g. REACH)
▪ Increasingly long list of products identified as toxic
▪ Requirement for more sophisticated analyses and more expensive equipment
▪ Increasing demand for per- and polyfluoroalkyl substances (PFAS) testing
The Environmental testing market continues to grow
Rise in
contamination &
pollution issues
Progress in epidemiology
& medicine has identified
more compounds as toxic
Compels industry to increase testing and outsource internal labs
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• Outdoor pollutants
• Indoor and ambient pollutants
Eurofins serves all the main environmental testing markets
SOILAIRWATER
Eurofins is the No.1 environmental testing service provider in the world*
• Drinking water and groundwater analysis
• Full range of contaminants
• Analysis of soil for full range of
contaminants
Consulting and
sampling companies
are natural partners
Lancaster Environmental
Testing is the laboratory of
choice for Fortune 500
companies in the USA Eurofins’ site map as of December 2020
*Management estimate based on available information
58
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Biopharma Testing Services
▪ Food Testing
▪ Environment Testing
▪ Clinical Diagnostics
▪ Other
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
59
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• Nowadays, Clinical Genetics is a central element in healthcare and Clinical Diagnostics, contributing to every stage of
patient care
• Throughout all three of Eurofins’ start-up programs, several large investments in global clinical genetics laboratories have
been made, giving Eurofins a unique portfolio of services for cutting-edge applications.
• Eurofins, through acquisitions and start-up laboratories, is investing heavily in advanced technologies:
•
Eurofins is setting up a global network of clinical
genetics laboratories
Developments in genetics and genomics will have a
significant impact on tomorrow’s clinical diagnostics market
Since 2014, Eurofins has already developed a network
of laboratories focused on clinical genetics in several
countries around the globe, including: India, Japan,
France, Germany, Spain, Italy and the USA
• EGL
• NTD
• Boston Heart
• ViraCor
• Diatherix
• Biomnis
• Megalab
• Lifecodexx
• Genoma
• Clinical Genetics Bangalore start-up
• Clinical Genetics Tokyo start-up
US
A
• Predictive tests for
genetic diseases and
oncology
• Side effects/efficacy
of drugs
• Rare diseases testing
• Non Invasive Prenatal Testing
• Personalized medicine offering
patients individualized treatment
based on their genetic and metabolic
profiles
• Next Generation Sequencing -Whole
Genome Sequencing
Eu
rop
e
AP
AC
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Eurofins is expanding its global offering in non-invasive prenatal testing (NIPT)
In September 2017, Eurofins’ Genoma introduced GeneSafeTM, the first non-invasive prenatal test that screens for both de novo (non-inherited gene mutations) and
inherited single-gene disorders.
▪ GeneSafeTM detects over 40 severe genetic disorders: that may occur in absence of any family history of the condition.
▪ GeneSafeTM is the first NIPT to detect disorders that are increasingly prevalent with advanced paternal age: later-stage parenthood is becoming increasingly
common.
▪ GeneSafeTM is more advanced than other NIPTs currently available: identifying fetal conditions that could be missed by traditional prenatal testing.
▪ Many disorders screened with GeneSafeTM:
▪ Are not typically associated with abnormal prenatal ultrasound findings.
▪ May not be evident until late second/third trimester or even after delivery.
In July 2017, Eurofins acquired a majority stake in LifeCodexx AG, Europe’s first NIPT provider and one of the most innovative NIPT players.
▪ LifeCodexx has been developing innovative and clinically validated tests since 2010.
▪ LifeCodexx’s PrenaTest® was Europe’s first NIPT: for the determination of the most common chromosomal disorders in unborn children. This was a
substantial development that changed prenatal diagnostics considerably.
▪ LifeCodexx, following a positive CE marking, began rolling-out their unique qPCR-based NIPT capabilities in December 2016: leading to increased cost-
efficiency and rapid turnaround time, another significant innovative step in the NIPT field.
Eurofins NIPTs are very reliable (>99% of conclusive results), fast (turnaround time under 2 weeks, qPCR assays only take 2-3 days) and simple (only a
small blood sample required). Eurofins is the first provider to offer the aforementioned novel NIPT tests, GeneSafeTM and qPCR-based NIPT, to the market.
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• Largest clinical diagnostics
provider in North Rhine-
Westphalia
• Access to over 900 physicians,
120 hospitals and around 20
local health authorities
Genomics Services
Eurofins commences genomics footprint with
the acquisition of Medigenomix (2001), MWG
(2004), Operon (2007) and AROS AB (2013)
One of the world’s leaders in
Genomics Services
• Custom DNA Sequencing &
Synthesis
• Gene Synthesis/Molecular
Biology
• Genotyping & Gene Expression
• Next Generation Sequencing
Genomics is one of the key technologies
enabling personalised medicine
Application of Genomics
Technology in Bioanalytical testing
Eurofins deploys genomics technology to
further develop its analytical portfolio for food,
environment and pharmaceutical testing
• Reference lab for
transplantation & time-sensitive
tests
• High-complexity testing for
infectious diseases, allergy and
immune disorders
2000-2009 2010-2014 2015
Establishing platform to deploy genomics expertise for development of
innovative clinical diagnostic tests to serve global healthcare community
• Leading diagnostics lab for
cardiovascular disease
• Proprietary plus clinical and
genetic tests & cardio-
informatics capabilities
• Proprietary technology (TEMP-
PCR) for single-tube
identification of multiple
pathogens
• Ultra-fast and precise, highly
parallel detection of infectious
diseases and drug resistance
• One of the leading groups of
medical biology labs in
France
• Competency in immunology,
oncology and infectious
diseases
• One of the largest esoteric
diagnostic labs in Europe
• Strong reputation in infectious
diseases & clinical trials for the
pharma industry
• First academic lab to bring
Next Generation Sequencing
(NGS) to commercial market
• Renowned for testing rare
genetic disorders
• Carrier screening, cancer
testing and exome sequencing
2016-2020
• Reference lab for
reproductive genetic testing
• Pioneer in first trimester non-
invasive prenatal screening
test for Down Syndrome
• One of the top 5 clinical
diagnostic laboratory
groups in Spain
• Largest national coverage
• Reference lab focused on
donor eligibility and
microbiology testing for
transplantations.
• Broad menu of infectious
disease screening assays
Eurofins Specialized Clinical Diagnostic Network Evolution
• European specialist in non-
invasive prenatal testing (NIPT)
• Launched Prenatest® in 2012,
the first NIPT in Europe
• One of the leading specialty
diagnostics testing providers in
Italy
• Strong reputation in molecular
biology and cytogenetics
• leading player in clinical diagnostics in
greater area of Santos, Sao Paulo state
• A leading Belgian laboratory
performing human medical testing
covering all branches of clinical
biology
• Provides molecular diagnostics and
pathology lab services
• Serves over 2,000 General
Practitioners in the NL
• Provides laboratory services
specialized for transplantation
and biomedical applications.
• Start-up with innovative test (TruGraf®)
able to rule out silent subclinical
rejection in kidney transplant recipients
with stable renal function
• The pioneer in non-invasive prenatal
testing (NIPT) and a leading player in
genetic analysis in Japan
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Eurofins Specialised Clinical Diagnostic Footprint
Establishing leadership in targeted higher-growth niche areas of the clinical testing market
Humangenetik Dr. Finckh
Dortmund
Clinical Genetics Japan
Clinical Diagnostics Pte Ltd
Clinicas Pinto de Barros
MML Alrijne
63
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Eurofins has built a valuable portfolio of Routine and
Specialized Clinical Diagnostics Laboratories in France
• Eurofins Clinical Diagnostics operations in France amount to ca. €400m of revenues.
• These €400m revenues were acquired over the last 4 years for ca. €600-700m, representing an
average EV / revenue acquisition multiple of 1.5x to 1.75x.
• Over the last three years, Clinical Diagnostics companies in France have, on average, been
acquired at over 3x target revenues.
Comparable M&A transactions in Clinical Diagnostics in France:
Date Target Acquirer EV in €m EV / target
revenues
March 2018 BIO7 Cerba 500 4.5x
January 2017 Cerba PSP, Partners Group 1,800 2.9x
64
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Biopharma Testing Services
▪ Food Testing
▪ Environment Testing
▪ Clinical Diagnostics
▪ Other
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
65
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Eurofins has also established global leadership positions in 5 high potential niche markets
Genomic ServicesAgroscience CRO**
ServicesDiscovery Pharmacology Cosmetics Testing
Advanced Materials
Sciences
Eurofins position
N°2*
Worldwide
N°1*
In Europe
Start 2004
N°1*
worldwide
Start 2006
N°1*
worldwide
Start 2010
N°1*
worldwide
Start 2014
N°1*
worldwide
Start 2017
Business line
description
Global network of state-of-the-
art laboratories offering the most
advanced technologies for
genetic analysis of all kinds of
samples and fast DNA-synthesis
service. Provides opportunities
to replace traditional analytical
methods by genomics methods
that offer process improvements
and economies of scale (e.g.
Pathogen testing in food and
environment)
Eurofins Agroscience CRO
Services has the broadest global
footprint of all CROs, offering a
unique portfolio of expertise
including analytical, regulatory
and field support to plant
breeders, agrochemical,
biopesticide, biocide and fine
chemical manufacturers.
Eurofins Pharma Discovery
Services is recognized as the
industry leader for providing drug
discovery researchers the
largest and most diverse
portfolio of standard and custom
in vitro safety & pharmacology
assays and panels for drug
screening and profiling. Eurofins
also offers a broad portfolio of
over 3,500 drug discovery
services and 1,800 products.
Network of laboratories offering
a full range of services to
retailers and cosmetic
manufacturers from raw
materials suppliers to finished
products producers. Services
include: consulting, physico-
chemical analysis, microbiology,
in-vitro studies, clinical studies
and consumer research.
Eurofins EAG laboratories is a
scientific leader helping clients
understand the physical
structure, chemical properties
and composition of their
materials. EAG offers the most
comprehensive portfolio of
analytical techniques including:
advanced microscopy, chemical
analysis, compositional analysis,
metallurgical analysis,
contaminant identification,
deformulation, trace elemental
analysis, etc.
Listed or larger
peers
IDT/Danaher,
Genewiz/Brooks, etc.SGS Evotec, Albany Molecular
Research, Charles River, etc.SGS
Exponent, Element Materials,
etc.
*To the best of Eurofins’ knowledge, based on data available to the Group **CRO: Contract Research Organization
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Eurofins is developing high Barriers to Entry around its businesses
Offering a premium quality service …
• Portfolio: over 200,000 analytical methods – unique in the
world and ahead of competition
• Global laboratory network: fully set up for cross-selling
worldwide to customers
• Accreditations: multiple international accreditations
• One-stop shop: single point of contact for compliance to
regulations of many countries
• Standardised testing in more than 50 countries
• Sales and marketing: international teams plus dedicated
key account management
• Reputation: high standards of quality and consistency -
the Eurofins brand
• Internet: web-based transactions and online access to
testing results increase switching costs
... and leveraging internal efficiencies
• Industrialising the laboratory process: rationalisation of
sites and personnel
• Competence Centres: high volume laboratories providing
highest levels of expertise and service
• Technology: the latest available in the market providing the
most accurate results
• Economies of scale in Group purchasing and sales
functions
• IT systems: cross-Group information tools and standardised
production systems
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
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Record H1 results
Half Year 2021 Half Year 2020
+/- Δ
Adjusted
Results
+/- Δ
Reported
Results
Adjusted1
Results
SDIs2 Reported
Results
Adjusted1
Results
SDIs2 Reported
Results
Revenues, EURm 3,272 - 3,272 2,323 - 2,323 +41% +41%
EBITDA3, EURm 1,008 -19 989 493 -35 459 +104% +116%
EBITDA Margin, % 30.8 - 30.2 21.2 - 19.7 +960bps +1,050bps
EBITAS4, EURm 813 -29 785 311 -52 259 +162% +203%
Net Profit5, EURm 582 -167 415 187 -92 95 +211% +339%
Basic EPS6, EUR 3.05 -0.87 2.17 1.03 -0.51 0.52 +196% +317%
1 Adjusted results - reflect the ongoing performance of the mature and recurring activities excluding “Separately Disclosed Items”
2 Separately disclosed items – include one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new
acquisitions undergoing significant restructuring, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to acquisitions as well
as income from reversal of such costs and from unused amounts due for business acquisitions, net finance costs related to borrowing and investing excess cash and one-off financial effects (net of finance income) and the related tax effects
3 EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs
related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions
4 EBITAS – EBITDA (as defined above) less depreciation and amortisation
5 Net Profit – Net profit for equity holders after non-controlling interests but before payment to Hybrid capital holders
6 Basic EPS – Basic EPS attributable to equity holders of the Company and hybrid capital investors
Key Highlights
• Record first six months, with strong growth of revenues (EUR 3,272m, +41% vs H1 2020) thanks to strong growth of Core Business and sustained revenues from COVID testing & reagents (close to EUR 750m)
• Record adjusted EBITDA of EUR 1,008m (+104% year-on-year) and 30.8% margin (vs 21.2% in H1 2020)
• Reported Net Profit5 of EUR 415m (12.7% of revenues, +339% vs EUR 95m in H1 2020)
• Record EPS6 of EUR 2.17 (EUR 3.05 adjusted), up 317% vs H1 2020
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Very strong results in terms of revenues and margin, ahead of the Group’s most recent objectives
Full Year 2020 Full Year 2019
+/- Δ
Adjusted
Results
+/- Δ
Reported
Results
Adjusted1
Results
SDIs2 Reported
Results
Adjusted1
Results
SDIs2 Reported
Results
Revenues, EURm 5,438.8 - 5,438.8 4,562.8 - 4,562.8 +19.2% +19.2%
EBITDA3, EURm 1,412.7 -61.8 1,350.8 930.7 -97.8 833.0 +51.8% +62.2%
EBITDA Margin
(%)
26.0% - 24.8% 20.4% - +18.3% 560bps +650bps
EBITAS4, EURm 1,023.6 -98.7 924.9 573.5 -136.5 437.0 +78.5% +111.6%
Net Profit to
Equity, EURm
706.5 -167.0 539.4 359.4 -164.1 195.2 +96.6% +176.3%
Basic EPS5, EUR 3.63 -0.91 2.71 1.75 -0.93 0.82 +107.4% +230.5%
1 Adjusted results - reflect the ongoing performance of the mature and recurring activities excluding “Separately Disclosed Items”.
2 Separately disclosed items – include one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new
acquisitions undergoing significant restructuring, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs related to acquisitions as well
as income from reversal of such costs and from unused amounts due for business acquisitions, net finance costs related to borrowing and investing excess cash and one-off financial effects (net of finance income) and the related tax effects.
3 EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs
related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions.
4 EBITAS – EBITDA (as defined above) less depreciation and amortization
5 Basic EPS attributable to equity holders of the Company
Key Highlights
• Very strong revenue growth in FY 2020 translated into improved margin, with adjusted EBITDA margin up by 560bps year-on-year
• Adjusted EBITDA of EUR 1,413m, significantly above the Group’s latest EUR 1,300m adjusted EBITDA objective for FY 2020 set in December 2020
• EPS5 increased by 107% to EUR 3.63 in FY 2020, largely driven by the increase in profitability and lower tax paid vs FY 2019 thanks to the usage of loss-carry forwards
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Controlled Net Working Capital use
Net working capital as a % of revenues
282250
440
6.4%
5.3%
6.6%
H1 2019 H1 2020 H1 2021Net working capital (NWC) €m NWC/Revenues (Last Q*4)
Key Highlights
• Net working capital back to 2019 mid-year levels, at 6.6% of revenues, as temporary postponements of social charges and tax payments put in place by some governments in 2020 reversed in 2021
• DSOs1 and DPOs2 stable at 58 days and 52 days respectively
• Stable inventory at 2.5% of revenues, largely related to the ramp-up in response to COVID-19
1 DSOs: Days of Sales Outstanding: Trade account receivables excluding VAT, accrued sales, WIP, less Advanced payments and Deferred revenues by external sales of last three months multiplied by 90 days
2 DPOs: Days of Payables Outstanding: Trade account payables excluding VAT less prepaid expenses and deferred charges by purchases and Capex of last three months multiplied by 90 days
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Net working capital intensity improved in FY 2020
NWC intensity
Invento
ryA
ccounts
re
ceiv
able
*A
ccounts
payable
262 250
308
5.3% 5.3%
FY 2019 H1 2020 FY 2020Net working capital (NWC) €m NWC/Revenues (Last Q*4)
79124
157
1.6%
2.6%2.3%
FY 2019 H1 2020 FY 2020
1,001 957
1,194
20.4% 20.2%
17.5%
FY 2019 H1 2020 FY 2020
Key Highlights
• Net working capital intensity decreased by 80bps in FY20 to 4.5% of revenues. The absolute change in NWC was largely driven by the impact of COVID-19 related activities
• Significant improvement in Days Sales outstanding (52 vs 60 days) balanced by slightly degraded Days Payables outstanding (53 vs 55 days)
• Inventories doubled during 2020 to EUR 157m to enable the Group to respond quickly to COVID-19 testing and reagents demands
4.5%
410389
542
8.3%
8.2%
8.0%
FY 2019 H1 2020 FY 2020
*Accounts receivable including contract assets
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Consistent capital investments to develop a unique network of laboratories and state-of-the-art IT solutions
361
319
350
2018 2019 2020
Net Capex (EUR m) FY 2020 Key Highlights
• Net Capex/Revenues ratio fell to 6.4% of Group’s revenues in FY20 vs. 7.0% in FY 2019 as the Group entered the final stage of its significant 2015-2020 investment programme
• Net Capex spend of EUR 350m, with Buildings and Leasehold improvements representing ca. 40%, Laboratory equipment ca. 35%, and IT Capex ca. 20%
• Net Capex spend slightly above the Group’s most recent objective of EUR 300m, reflecting the requirements to ramp up the Group’s COVID-19 testing capacity
Infrastructure1 Capex (EUR m)
1 Infrastructure spend includes Land, Building and Leasehold Improvements, Assets in Progress and Machinery and Laboratory Equipment (net of proceeds from sales)
2 IT intangible assets (e.g. software) and hardware capex
270
240
274
2018 2019 2020
Machinery and Laboratory Equipment
Real Estate
64 64 64
2018 2019 2020
IT 2 Capex (EUR m)
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Return on Capital Employed
Before IFRS 16
implementation
After IFRS 16
implementation2
(EURm) 2016 2017 2018 2019 2020
Average capital employed at the end of
each quarter2,399 2,803 4,521 6,304 6,423
Average capital employed excluding
Goodwill at the end of each quarter657 785 1,080 1,925 1,996
Adjusted EBITAS 358 400 521 574 1,024
ROCE¹ 9.1% 15.9%
ROCE¹ (return on capital employed
excluding Goodwill)54.4% 50.9% 48.2% 29.8% 51.3%
▪ Heavy investment phase during 2016-2020 for:
▪ Laboratory extensions of existing sites – many
new sites in 2019 and 2020 not yet highly utilised
▪ Start-up laboratories resulting in early operating
losses (part of SDI’s) included in capital employed
but not contributing profits
▪ IT infrastructure set up, development and
deployment of new generation IT solutions not yet
generating positive impact on efficiency and
margins
▪ Goodwill from M&A with over 110 acquisitions in
2017 and 2018 increasing capital base
▪ Restructuring of acquired laboratory network (part
of SDI’s) to fit with hub-and-spoke model
▪ Resulting in dilution of ROCE short-term
▪ Hurdle rate of 12% ROCE (pre-tax) by Year 3
▪ ROCE should start increasing again when investment
phase is completed and Eurofins is reaping the
benefits from past investments
¹ ROCE = adjusted EBITAS / average capital employed over previous 4 quarters2 IFRS 16 added c. EUR 490m right-of-use (ROU) assets in 2019 and c. EUR 514m in 2020
into the capital employed figures
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Very solid liquidity position and significant reduction in leverage
Debt maturity profile (EUR m)Leverage1
1 Leverage: net debt / PF12M adjusted EBITDA (corrected for the estimated impact of the cyber-attack in 2019)
3.4x3.2x
2.5x
1.6x
1.0x
FY2018 FY2019 H1 2020 FY 2020 H1 2021
Key Highlights
• Reduction of close to EUR 500m in corporate senior gross debt following successful refinancing exercises
• Capital management, driving 10% reduction in net debt, from EUR 2,242m at December 2020 to EUR 2,015m at the end of June 2021
• Leverage ratio significantly decreased to 1.0x at the end of June 2021, from 1.6x at the end of December 2020 and 2.5x at the end of June 2020
• Refinancing exercises carried out in H1 2021 enabled the Group to secure a €750m Eurobond issued in May 2021 with a 10-year maturity at an annual interest of 0.875% and will bring the average cost of financing to below 1.8% from H2 2021 onwards
• Investment grade credit rating of BBB- with stable outlook assigned by Fitch Ratings in May 2021 in addition to Moody’s similar long-term issuer rating of Baa3 with stable outlook assigned in July 2020
• Overall, at June-end 2021, Eurofins enjoys a strong liquidity position and a longer debt maturity profile
447.75
302.25
750
45.5
233.5175.5
127.5
300
300
400
0
100
200
300
400
500
600
700
800
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031
Hybrid (1st call) Schuldschein
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Solid Balance Sheet
Hybrid – Ba2 rated
• €650m Eurobond issued in Jul 2017 with a nominal amount
outstanding of €447.7m, 7-yr maturity (Jul 2024) at an annual
interest of 2.125%
• €600m Eurobond issued in May 2020 with a nominal amount
outstanding of €302.2m, 6-yr maturity (Jul 2026) at an annual
interest of 3.75%
• €750m Eurobond issued in May 2021, 10-yr maturity (May 2031) at
an annual interest of 0.875%
Eurobond – Baa3/BBB- rated
• €300m hybrid issued in September 2019, callable at par by
Eurofins in August 2022. Bears a fixed coupon of 2.875% until
first call, Euribor 3m + 605.8 bp thereafter if not called
• €300m hybrid issued in April 2015, callable at par by Eurofins in
April 2023. Bears a fixed coupon of 4.875% until first call, Euribor
3m + 701 bp thereafter if not called
• €400m hybrid issued in November 2017, callable at par by
Eurofins in November 2025. Bears a fixed coupon of 3.25% until
first call, then 2.667% until Second Step-Up Date and 3.667%
thereafter if not called.
• On these hybrid instruments outstanding in 2021, a first
distribution on hybrid capital of EUR 14.6m was paid in April
(EUR 300m at 4.875%)
Schuldschein
• €550m Schuldschein loan issued in Jul 2018 with a nominal
amount outstanding of €232m offering a blended interest rate of
1.38%* with an average maturity of 5 years. Schuldschein was
structured with maturities of 4-yr (Jul 2022) and 7-yr (Jul 2025)
with both fixed and floating interest rates. Floating tranches
have been repaid in 2020 and in January 2021.
• €350 Schuldschein loan issued in Oct 2020 offering a blended
interest rate of 1.78% with an average maturity of 7.8 years. This
Schuldschein loan is structured in tranches of 5, 7 and 10 years,
with both fixed and floating interest rates, with more than 85% of
the transaction on the 7 and 10-year tenors.
*Calculated on the fixed tranches
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Audit Coverage Continued Expansion
In 2019, the AGM appointed Deloitte Audit as auditor resulting in improved audit coverage by Tier 1 and
Tier 2 auditors.
For the year ended 31 December 2020, the coverage of Deloitte Audit and other auditors was as follows:
(1) Including review by Deloitte Audit of component auditors works
(2) Tier 1 (PwC, Deloitte, EY, KPMG)
Tier 2 (RSM, Grant Thornton, BDO, Mazars, Moore Stephens, Crowe, Baker Tilly)
2020 accounts 2019 accounts
Audit coverage for
Consolidated
Financial Statements
Tier 1 & Tier 2
auditors’ coverage
for statutory audits2
Audit coverage for
Consolidated Financial
Statements1
Tier 1 & Tier 2
auditors’ coverage
for statutory audits2
External Sales 71% 94% 70% 92%
EBITDA 80% 98% 84% 99%
Total assets 83% 97% 85% 97%
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
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Eurofins is positively contributing to 16 of 17 United Nations Sustainable Development Goals (UNSDGs)
We are aligned with 16 out of 17 UNSDGs both at central level, through the Eurofins Foundation and through the activities
of our business lines
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Our Businesses are ESG positive
• We help improve health outcomes, ensure food safety and protect the environment
• E.g., our Environment, Food and Feed Laboratories:
o Assess safety of the whole water cycle and analyse waste toxicity
o Monitor air pollution and soil quality
o Contribute to developing more sustainable agricultural practices/ outputs
o Help minimise levels of pesticides, persistent organic/ chemical pollutants
o Provide audits to certify compliance with food safety and environmental standards
o Certify food packaging and contact materials, including their recyclability
• We have limited exposure to the carbon intensive industries such as oil and gas, fracking or transportation
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We are an ESG enabler for our clients
• We help our clients improve their ESG measurement and monitoring
• Our world-leading, multidisciplinary expertise in laboratory testing and monitoring directly promotes human safety and environmental protection, including:
o Food Quality and Integrity
o Environmental Safety
o Seed Development and Crop Production including alternatives to meat
o Drug Development
o Patient Care, from Prevention to Prognosis & Treatment
o Hospitals, Industrial Sites and Offices Hygiene
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Our ESG roadmap
1. Embed ESG targets into leadership performance and remuneration from 2021
2. Carbon neutrality by 2025:
a. Launch a carbon footprint reduction programme at regional level, managed
by our Business Leaders
b. Establish a CO2 inventory (scope 1, 2, 3) by 2022
c. Set 2022-2023 CO2-quantified emissions reduction targets & associated
implementable action plan at regional level
3. Set up a Group-wide Sustainability Programme with consolidated methods, models and
data
4. Improve diversity, including % of women in leadership roles through our global
Equality Driving Excellence (EDE) initiative
5. Continue to increase the Eurofins Foundation’s impact. In 2020, the Eurofins
Foundation trebled its donation budget and is now directly supporting:
a. Nearly 2x as many non-profit organisations worldwide compared to 2019
b. 75+ projects globally
6. Board development with the appointment of two new independent directors*, to bring the
total number to eight and achieve gender parity at Board level
*Including to replace one retiring member
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Sustainability remains at the heart of Eurofins’ activities
1 Covering Scope 1, 2 and 3
In H1 2021 the Group continued to embed best practices and make further progress on all three dimensions of ESG:
• Established Sustainability and Corporate Governance Committee at Board level to demonstrate focus and commitment on these important topics
• Official roll-out of Eurofins’ Carbon Footprint Reduction programme at regional level, with management responsibilities extended to local CO2 Champions and Business Leaders
o Further progress made on Group-wide Carbon measurements, with aim to establish CO2 inventory1 by end of 2022
• Formal adoption of ESG targets focused on gender diversity, safety, environment and compliance for all Business Units and more Senior leaders
• Significant ESG-related engagement efforts made at Group level, including increased interaction with leading rating agencies as part of our Group-wide Sustainability Programme:
o Eurofins’ ESG rating by Sustainalytics improved from 'Medium Risk' to 'Low Risk’ in June 2021
Corporate Governance:
• Formal appointment of two highly experienced independent directors who officially joined the Board on 22 April 2021, bringing the total number of members to eight, of which four are women
• Appointment of Lead Independent Director (Pascal Rakovsky) on 22 April 2021
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Global Equality Driving Excellence Initiative (EDE): 2020 Achievements and 2021 Goals
Increased
Female Leadership Global Equality Ambassador
Council (33 members)
Diversity Action Expanded to
Stance against Racism and
Support LGBTQ Rights
Equality Targets in Leadership
Performance encouraging YOY
improvements
Internal Job Postings
Visibility and Talent
Pools
Expanded Regional EDE
Council Meetings
2020 achievements 2021 goals
Mentoring Pilot
paralleling software
and internal process
Intranet, Newsletter
& Employee NPS Survey
1 Senior Leaders groups represented the top 29 people in 2020 vs the top 38 in 2021 and are composed of all Regional Business Leaders and above
Jan-20 Jan-21
Senior Leaders1 29 38
Male 26 31
Female 3 7
% Male 90% 82%
% Female 10% 18%
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
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2020 was another year of significant progress
1,044 1,226
1,410 1,950
2,537
2,971
3,781 4,563
5,439
3,902 3,933 4,172
4,635 4,549 4,689 4,796
5,100
4,601
2,321 2,468 2,365 2,448
2,901 3,129 3,165
3,375
3,084
5,188 5,422 5,471
5,312 5,566
5,905
6,237 6,138
5,235
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Companies Annual Reports. Reported revenue figures for Intertek and SGS translated into EUR using annual average exchange rates
Reported Revenues, EUR m
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Outlook: 2021 objectives upgraded. 2022 and 2023 objectives excluding Covid unchanged for now
1 Set on March 1, 2021
2 2022 & 2023 objectives set at average 2020 exchange rates and excluding any revenues from COVID-19 testing and reagents and any M&A beyond 31/12/2020 (i.e. organic Core Business ex. COVID-19 objectives), assuming full return to normal of
economies / markets to pre-pandemic levels
We upgrade 2021 objectives by 13% for revenues and by 36% for EBITDA (all at average H1 2021 exchange rates). FY 2022 and FY 2023 remain unchanged at this time as the duration and magnitude of the COVID-19 related contribution remain impossible to quantify due to uncertainty on new variants and public policy responses. However it is likely that significant levels of testing for COVID-19 may unfortunately continue at a meaningful level at least in 2022.
FY 2021 upgraded objectives EUR m FY 2021 previous objectives1 EUR m
o Revenues 6,150 Revenues 5,450 o Adjusted EBITDA 1,700 Adjusted EBITDA 1,250
FCF-Firm 700Net Capex 350SDI (at EBITDA le vel) 30M&A 150
FY 20222 (Core Business excl. Covid and M&A beyond 31/12/2020)
o Revenues 5,450o Adjusted EBITDA 1,300o FCF-Firm 750
FY 20232 (Core Business excl. Covid and M&A beyond 31/12/2020)
o Revenues 5,725o Adjusted EBITDA 1,375o FCF-Firm 800
For 2022 & 2023, in addition to these organic objectives,
potential proforma revenues from acquisitions of
EUR 150m in 2021 and EUR 200m in both 2022 and
2023 (consolidated at mid-year), which would bring
Group revenue objectives to:
• EUR 5,700m in 2022
• EUR 6,175m in 2023
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Conclusion: our sustainable competitive advantage
High-growth, non-cyclical markets driven by secular mega-
trends
Advancing globalisation but with very few global testing
suppliers
Fragmented competition & opportunities for consolidation
Very recurring business; 5% - 12% typical historic organic
growth for the last 20 years
High barriers to entry
Best in class technology and quality give best brand
protection
N° 1 or 2 worldwide in most business lines
Operating in more than 50 countries
State-of-the-art laboratory infrastructure
High switching costs for clients
Good cash flow visibility
Experienced multi-national leadership
• Track record of profitable growth – Strong ROCE and cash flow generation potential
• ROCE* of 15.9% and ROE** of 26.7% in 2020 despite significant future-orientated investments and one-off restructuring costs. ROCE*
excluding goodwill of 51.3%
• 5-year CAGR (FY 2015 - FY 2020): Revenues 23%, Net Operating Cash Flow 33%
• Large potential to roll out business model in fast growing economies
• Following past intense investment cycles Eurofins’ network of laboratories is well positioned for the Group to achieve its objectives
whilst gaining and maintaining leadership in multiple markets and improving profitability
*ROCE = Adjusted EBITAS/Average Capital Employed over previous 4 quarters **ROE = Net Profit/Equity (excl. Hybrid) at the beginning of the year
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
89
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Summarised Income StatementFor the six months ended 30 June
2021 2020
In millions of EUR Adjusted resultsSeparately
disclosed itemsReported results Adjusted results
Separately
disclosed
items
Reported
results
Revenues 3,272.3 3,272.3 2,323.4 - 2,323.4
Operating costs, net -2,264.2 -19.0 -2,283.2 -1,830.0 -34.9 -1,864.8
EBITDA 1,008.1 -19.0 989.1 493.5 -34.9 458.6
Depreciation and amortisation -194.8 -9.6 -204.4 -182.7 -17.0 -199.7
EBITAS 813.3 -28.5 784.7 310.7 -51.9 258.9
Share-based payment charge and acquisition-related expenses, net - -60.1 -60.1 - -59.4 -59.4
EBIT 813.3 -88.7 724.6 310.7 -111.2 199.5
Finance income 0.6 - 0.6 1.0 0.6 1.7
Finance costs -51.9 -96.2 -148.0 -48.5 -2.5 -51.0
Share of profit of associates 1.7 - 1.7 0.5 - 0.5
Profit before income taxes 763.7 -184.8 578.8 263.7 -113.1 150.6
Income tax expense -180.8 17.9 -162.9 -76.6 20.5 -56.0
Net profit for the period 582.9 -166.9 415.9 187.2 -92.6 94.6
Attributable to:
Owners of the Company and hybrid capital investors 582.4 -166.9 415.5 187.1 -92.3 94.7
Non-controlling interests 0.4 - 0.4 0.1 -0.2 -0.1
Basic earnings per share (EUR)1
Total 3.05 -0.87 2.17 1.03 -0.51 0.52
Attributable to owners of the Company 2.97 -0.88 2.09 0.94 -0.52 0.43
Attributable to hybrid capital investors 0.08 0.01 0.09 0.09 0.01 0.09
Diluted earnings per share (EUR)1
Total 2.90 -0.83 2.07 0.98 -0.48 0.50
Attributable to owners of the Company 2.83 -0.84 1.99 0.90 -0.49 0.41
Attributable to hybrid capital investors 0.07 0.01 0.08 0.08 0.01 0.09
1 Following a ten-for-one stock split in November 2020, the figures for 2020 have been restated as if the stock split had been effective on 1 January, 2020.
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Consolidated Income Statement For the year ended 31 December 2020
2020 2019
In millions of EUR Adjusted results Separately
disclosed itemsReported results Adjusted results
Separately
disclosed itemsReported results
Revenues 5,438.8 - 5,438.8 4,562.8 - 4,562.8
Operating costs, net -4,026.1 -61.8 -4,087.9 -3,632.1 -97.8 -3,729.8
EBITDA 1,412.7 -61.8 1,350.8 930.7 -97.8 833.0
Depreciation and amortisation -389.1 -36.9 -426.0 -357.2 -38.7 -395.9
EBITAS 1,023.6 -98.7 924.9 573.5 -136.5 437.0
Share-based payment charge and acquisition-related
expenses, net- -124.5 -124.5 - -70.5 -70.5
EBIT 1,023.6 -223.3 800.3 573.5 -206.9 366.6
Finance income 2.0 0.7 2.7 1.9 3.3 5.2
Finance costs -107.1 -3.3 -110.4 -98.8 -2.0 -100.9
Share of profit of associates 1.7 - 1.7 0.6 0.6
Profit before income taxes 920.2 -225.8 694.4 477.2 -205.6 271.5
Income tax expense -213.0 59.1 -153.9 -116.9 40.6 -76.3
Net profit for the year 707.2 -166.7 540.5 360.3 -165.0 195.3
Attributable to:
Owners of the Company and hybrid capital investors 706.5 -167.0 539.4 359.4 -164.1 195.2
Non-controlling interests 0.7 0.3 1.0 0.9 -0.9 -
Basic earnings per share (EUR)
- Total 3.79 -0.90 2.90 2.02 -0.92 1.10
- Attributable to owners of the Company 3.63 -0.91 2.71 1.75 -0.93 0.82
- Attributable to hybrid capital investors 0.17 0.02 0.18 0.27 0.01 0.28
Diluted Earnings per share (EUR)
- Total 3.61 -0.85 2.75 1.93 -0.88 1.05
- Attributable to owners of the Company 3.45 -0.87 2.58 1.67 -0.89 0.78
- Attributable to hybrid capital investors 0.16 0.02 0.17 0.26 0.01 0.27
Basic weighted average shares outstanding - in millions 186.2 186.2 178.0 178.0
Diluted average shares outstanding - in millions 195.9 195.9 186.5 186.5
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Summarised Balance Sheet
In millions of EUR30 June
2021
31
December
2020
Property, plant and equipment 1,667.3 1,574.9
Goodwill 3,643.3 3,524.1
Other intangible assets 814.9 825.1
Investments in associates 6.9 5.6
Financial assets and other receivables 54.6 51.0
Deferred tax assets 61.1 76.6
Total non-current assets 6,248.1 6,057.3
Inventories 169.1 157.0
Trade receivables 978.3 948.5
Contract assets 337.7 245.0
Prepaid expenses and other current assets 198.4 189.0
Current income tax assets 89.3 66.2
Derivative financial instruments assets 0.2 0.1
Cash and cash equivalents 639.9 912.4
Total current assets 2,412.9 2,518.2
Total assets 8,661.0 8,575.5
In millions of EUR30 June
2021
31
December
2020Share capital 1.9 1.9
Treasury shares - -
Hybrid capital 1,000.0 1,000.0
Other reserves 1,555.2 1,542.6
Retained earnings 1,577.0 1,310.5
Currency translation reserve -54.9 -164.7
Total attributable to owners of the Company 4,079.2 3,690.3
Non-controlling interests 31.0 26.1
Total shareholders' equity 4,110.2 3,716.4
Borrowings 2,526.8 2,917.2
Deferred tax liabilities 116.2 115.3
Amounts due for business acquisitions 63.7 48.5
Employee benefit obligations 73.9 73.3
Provisions 12.0 8.4
Total non-current liabilities 2,792.7 3,162.7
Borrowings 128.2 237.6
Interest due on borrowings and earnings due on hybrid capital 44.4 51.3
Trade accounts payable 530.8 542.0
Contract liabilities 162.9 136.7
Current income tax liabilities 123.0 84.3
Amounts due for business acquisitions 63.3 55.9
Provisions 26.3 36.3
Other current liabilities 679.1 552.3
Total current liabilities 1,758.1 1,696.4
Total liabilities and shareholders' equity 8,661.0 8,575.5
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Consolidated Balance Sheet
In millions of EUR
31
December
2020
31
December
2019
Property, plant and equipment 1,574.9 1,593.5
Goodwill 3,524.1 3,608.8
Other intangible assets 825.1 918.2
Investments in associates 5.6 5.3
Financial assets and other receivables 51.0 49.2
Deferred tax assets 76.6 44.0
Total non-current assets 6,057.3 6,218.9
Inventories 157.0 79.3
Trade receivables 948.5 810.7
Contract assets 245.0 190.5
Prepaid expenses and other current assets 189.0 153.0
Current income tax assets 66.2 73.4
Derivative financial instruments assets 0.1 0.3
Cash and cash equivalents 912.4 297.0
Total current assets 2,518.2 1,604.1
Total assets 8,575.5 7,823.1
In millions of EUR
31
December
2020
31
December
2019
Share capital 1.9 1.8
Treasury Shares - -0.2
Hybrid capital 1,000.0 1,000.0
Other reserves 1,542.6 978.2
Retained earnings 1,310.5 718.9
Currency translation reserve -164.7 139.8
Total attributable to owners of the Company 3,690.3 2,838.6
Non-controlling interests 26.1 59.5
Total shareholders' equity 3,716.4 2,898.1
Borrowings 2,917.2 3,086.9
Deferred tax liabilities 115.3 124.5
Amounts due for business acquisitions 48.5 51.7
Employee benefit obligations 73.3 75.3
Provisions 8.4 5.1
Total non-current liabilities 3,162.7 3,343.4
Borrowings 237.6 454.8
Interest due on borrowings and earnings due on hybrid
capital51.3 50.0
Trade accounts payable 542.0 409.8
Contract liabilities 136.7 116.4
Current income tax liabilities 84.3 20.7
Amounts due for business acquisitions 55.9 62.2
Provisions 36.3 22.0
Other current liabilities 552.3 445.6
Total current liabilities 1,696.4 1,581.6
Total liabilities and shareholders' equity 8,575.5 7,823.1
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Summarised Cash Flow StatementFor the six months ended 30 June
In millions of EUR 2021 2020
Cash flows from operating activities
Profit before income taxes 578.8 150.6
Depreciation and amortisation 204.4 199.7
Share-based payment charge and acquisition-related expenses, net 60.1 59.4
Financial income/(expense), net 144.3 46.4
Share of profit from associates -1.7 -0.5
Transactions costs and income related to acquisitions -3.8 -3.4
Changes in provisions and employee benefit obligations -6.5 -2.7
Other non-cash effects 0.4 -0.2
Change in net working capital -127.6 13.4
Cash generated from operations 848.5 462.7
Income taxes paid -139.9 -17.7
Net cash provided by operating activities 708.6 445.0
Cash flows from investing activities
Purchase of property, plant and equipment -200.1 -113.0
Purchase, capitalisation of intangible assets -22.9 -19.5
Proceeds from sale of property, plant and equipment 3.1 2.9
Net capex -219.8 -129.7
Free Cash Flow to the Firm 488.7 315.3
Acquisitions of subsidiaries net of cash acquired and proceeds from disposals
of subsidiaries -58.4 -76.4
Disposals/(acquisition) of investments, financial assets and derivative financial
instruments, net1.3 -0.5
Interest received 0.5 1.2
Net cash used in investing activities -276.5 -205.3
In millions of EUR 2021 2020
Cash flows from financing activities
Proceeds from issuance of share capital 12.6 544.6
Proceeds from borrowings 742.7 595.3
Repayments of borrowings -1,249.4 -924.3
Repayments of lease liabilities -73.8 -75.1
Dividends paid to shareholders and non-controlling interests -0.4 -
Earnings paid to hybrid capital investors -14.6 -14.6
Interest paid -135.8 -41.2
Net cash (used)/provided by financing activities -718.7 84.6
Net effect of currency translation on cash and cash equivalents and bank
overdrafts14.7 -5.3
Net (decrease)/increase in cash and cash equivalents and bank
overdrafts-271.9 319.0
Cash and cash equivalents and bank overdrafts at beginning of period 910.5 294.5
Cash and cash equivalents and bank overdrafts at end of period 638.6 613.6
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Consolidated Cash Flow StatementFor the year ended 31 December 2020
In millions of EUR 2020 2019
Cash flows from operating activities
Profit before income taxes 694.4 271.5
Depreciation and amortisation 426.0 395.9
Share-based payment charge and acquisition-related expenses, net 124.5 70.5
Financial income and expense, net 101.8 96.1
Share of profit from associates -1.7 -0.6
Transactions costs and income related to acquisitions -6.2 -8.3
Changes in provisions and employee benefit obligations 18.7 7.3
Other non-cash effects 8.5 4.6
Change in net working capital -48.4 -64.2
Cash generated from operations 1,317.5 772.9
Income taxes paid -94.0 -95.0
Net cash provided by operating activities 1,223.5 677.9
In millions of EUR 2020 2019
Cash flows from financing activities
Proceeds from issuance of share capital 564.8 23.4
Proceeds from issuance of hybrid capital - 297.6
Proceeds from borrowings 946.2 192.2
Repayments of borrowings -1,304.5 -330.9
Repayment of lease liabilities -150.6 -142.4
Repayment of hybrid capital - -300.0
Dividends paid to shareholders and non-controlling interests -0.5 -51.4
Earnings paid to hybrid capital investors -36.3 -68.4
Interest paid -67.8 -62.7
Net cash provided by financing activities -48.6 -442.6
Net effect of currency translation on cash and cash equivalents and
bank overdrafts-33.9 4.1
Net increase (decrease) in cash equivalents and bank overdrafts 616.0 -200.5
Cash and cash equivalents and bank overdrafts at beginning of period 294.5 495.0
Cash and cash equivalents and bank overdrafts at end of period 910.5 294.5 Cash flows from investing activities
Purchase of property, plant and equipment -310.8 -278.2
Purchase, capitalisation of intangible assets -44.7 -44.3
Proceeds from sale of property, plant and equipment 5.2 3.2
Net capex -350.3 -319.3
Free Cash Flow to the Firm1 873.2 358.6
Acquisition of subsidiaries net of cash acquired and proceeds
from disposals of subsidiaries-177.2 -171.0
Acquisition and disposal in investments, financial assets and
derivative financial instrument, net -0.1 47.6
Interest received 2.6 2.9
Net cash used in investing activities -525.0 -439.8
1Free Cash Flow to the Firm – Net cash provided by operating activities, less net capex.
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Contents
▪ Executive Summary
▪ Market & Strategic Positioning
▪ Financial review
▪ ESG
▪ Outlook
▪ Summarised Financial Statements
▪ Appendix
96
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0%
5000%
10000%
15000%
20000%
25000%
30000%
35000%
40000%
45000%
50000%
55000%
Eurofins has vastly outperformed the market since its IPO(based on share price of €96.40 as of 30 June 2021)
1997
IPO
€5m
1998
rights
issue
€6m
1999
rights
issue
€7m
2000
rights
issue
€38.5m
Eurofins: +52,595% (30% 24-year CAGR)CAC 40: +135% (4% 24-year CAGR)
SBF 120: +170% (4% 24-year CAGR)
S&P 500: +390% (7% 24-year CAGR)
Nasdaq: +846% (10% 24-year CAGR)
Total equity raised in 8 offerings: only €1,387m
€57m 1997-2000, €496m in 2016, €299m in 2017
and €535m in 2020Sept 2016
ABB**
€296mJune 2016
Private placement
CDPQ €200mBest share price performance of all companies
listed in Europe between IPO on October 1997
and October 10th 2017*
*Source Marten & Co. study 24th October 2017 **ABB: Accelerated Book Building
Oct 2017
ABB**
€299m
May 2020
ABB**
€535m
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We have built a hard-to-replicate world-class infrastructure
Eurofins has been consistently investing more than its peers (average if more than 1 year)
Source: Eurofins, Company websites. TICS ex ERF = SGS, Intertek, Bureau Veritas
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
0%
2%
4%
6%
8%
10%
12%
00-'04 05-'09 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Net
Cap
ex t
o S
ale
s
ERF TICS ex ERF Excess investment
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0
200
400
600
800
1,000
1,200
2015 2016 2017 2018 2019 2020
Start-ups (operating losses) and reorganization costs (EBITDA level)
Extra capex above requirements for normal growth level (above 6% of revenues excl. IFRS 16)
Reported FCF to the Firm
Eurofins has been allocating a significant part of its free cash flow to equity towards building its leading global platform
Cashflow expansion levers: cash investments impacting cashflows
*€92m estimated cyber-attack cost & cash flow impact, €29m for purchase of 2 buildings at year-end
**Reported Free Cash Flow to the Firm – Net cash provided by operating activities, less Net capex
FCF invested for the future (SDIs)
Reported FCF to the Firm**Fig
ure
s in €
m
€121m*
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Start-ups expected to break-even on Year 3 and typically reach Group’s profitability objectives in the following years
Start-ups development:1) Large investments have short-term dilutive impact on
Group’s margins and FCF
2) Growth momentum allows start-ups to typically break-even
on Year 3 post-creation
3) From year 5 ROCE generally better than growth via
acquisitions
Illustration: Example of a typical Eurofins’ start-up
Start-up A
Dynamic
growth
Break-even
achieved
Pre-accreditation:
Establishing
infrastructure
Receiving
accreditationStart-up reaches
break-even
Developing towards
Group’s profitability levels
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0%
200%
400%
600%
800%
1000%
1200%
1400%
12/11 12/12 12/13 12/14 12/15 12/16 12/17 12/18 12/19 12/20
ERF FP Equity SGSN SW Equity ITRK LN Equity BVI FP Equity
ALQ AU Equity DGX US Equity SHL AU Equity CRL US Equity
NEOG US Equity OPK US Equity LH US Equity IDXX US Equity
UKX Index DAX Index SPX Index CAC Index
Shareholder Returns: TICS & Clinical Diagnostics Companies
Share price evolution 2011-2020
Source: Bloomberg
EurofinsEurofins
Total Shareholder Returns 2011-2020 (Assumes all dividends re-invested)
Shareholder Returns (based on share prices as of close 31.12.2020 in %)
Based on share prices Total Shareholder Returns (Assumes all dividends re-invested)
Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
100.0 217.5 348.8 376.4 571.4 719.0 901.1 578.7 877.3 1,218.4 100.0 219.5 354.4 384.6 586.6 741.4 933.0 602.2 919.5 1,276.9
100.0 130.3 132.0 131.5 122.9 133.2 163.4 142.1 170.5 171.7 100.0 135.3 140.4 144.3 139.7 156.6 198.5 178.1 220.4 229.7
100.0 152.3 154.7 114.7 136.5 171.1 255.0 235.9 287.6 277.5 100.0 154.3 158.8 119.8 145.3 185.1 280.2 263.3 327.3 322.0
100.0 150.4 150.9 130.1 130.7 130.8 162.7 126.4 165.3 154.6 100.0 153.1 156.9 138.3 142.2 146.1 185.7 148.9 199.7 186.8
100.0 110.2 91.2 55.6 41.3 66.2 76.6 74.3 100.6 105.3 100.0 115.6 100.7 64.3 49.5 80.9 99.6 99.5 139.4 149.4
100.0 100.4 92.2 115.5 122.5 158.3 169.6 143.4 183.9 205.3 100.0 101.5 95.2 121.9 132.0 174.1 190.1 163.8 214.8 245.0
100.0 118.2 147.0 164.0 158.4 189.7 202.7 196.0 254.9 285.0 100.0 123.9 160.7 186.4 186.5 231.6 267.1 267.7 360.6 415.7
100.0 137.1 194.1 232.9 294.1 278.8 400.5 414.1 558.9 914.2 100.0 137.1 194.1 232.9 294.1 278.8 400.5 414.1 558.9 914.2
100.0 147.9 223.7 242.8 276.7 323.1 402.5 372.1 426.0 517.6 100.0 147.9 223.7 242.8 276.7 323.1 402.5 372.1 426.0 517.6
100.0 98.2 172.2 203.9 205.1 189.8 100.0 61.4 30.0 80.6 100.0 98.2 172.2 203.9 205.1 189.8 100.0 61.4 30.0 80.6
100.0 100.8 106.3 125.5 143.8 149.3 185.5 147.0 196.8 236.8 100.0 100.8 106.3 125.5 143.8 149.3 185.5 147.0 196.8 236.8
100.0 120.6 138.2 192.7 189.5 304.8 406.4 483.4 678.6 1,299.0 100.0 120.6 138.2 192.7 189.5 304.8 406.4 483.4 678.6 1,299.0
100.0 105.8 121.1 117.8 112.0 128.2 138.0 120.7 135.4 115.9 100.0 110.0 130.5 131.5 129.7 154.5 173.0 157.8 185.0 163.8
100.0 129.1 161.9 166.2 182.1 194.6 219.0 179.0 224.6 232.6 100.0 129.1 161.9 166.2 182.1 194.6 219.0 179.0 224.6 232.6
100.0 113.4 147.0 163.7 162.5 178.0 212.6 199.3 256.9 298.7 100.0 116.0 153.5 174.5 176.9 198.1 241.3 230.7 303.4 359.1
100.0 115.2 136.0 135.2 146.8 153.9 169.0 149.7 189.2 175.7 100.0 120.4 147.1 150.8 168.9 183.7 206.8 190.0 247.8 235.5
0.0%
200.0%
400.0%
600.0%
800.0%
1000.0%
1200.0%
1400.0%
12/11 12/12 12/13 12/14 12/15 12/16 12/17 12/18 12/19 12/20
ERF FP Equity SGSN SW Equity ITRK LN Equity BVI FP Equity
ALQ AU Equity DGX US Equity SHL AU Equity CRL US Equity
NEOG US Equity OPK US Equity LH US Equity IDXX US Equity
UKX Index DAX Index SPX Index CAC Index
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Shareholder Returns: TICS & Clinical Diagnostics Companies
Historical Share Price Development (Y vs Y-1) Compounded Annual Growth Rates
2 Y 3Y 4 Y 5Y
Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-205Y
Growth2018-2020
2017-2020
2016-2020
2015-2020
Eurofins 60.4% 7.9% 51.8% 25.8% 25.3% -35.8% 51.6% 38.9% 113.2% 45% 11% 14% 16%
SGS 1.3% -0.3% -6.6% 8.4% 22.6% -13.0% 20.0% 0.7% 39.7% 10% 2% 7% 7%
Intertek 1.6% -25.9% 19.0% 25.4% 49.1% -7.5% 21.9% -3.5% 103.4% 8% 3% 13% 15%
BV 0.4% -13.8% 0.4% 0.1% 24.4% -22.3% 30.7% -6.4% 18.3% 11% -2% 4% 3%
ALS -17.2% -39.0% -25.7% 60.2% 15.7% -3.0% 35.4% 4.7% 154.9% 19% 11% 12% 21%
Quest Diagnostics -8.1% 25.3% 6.1% 29.2% 7.2% -15.5% 28.2% 11.6% 67.5% 20% 7% 7% 11%
Sonic Healthcare 24.4% 11.6% -3.4% 19.8% 6.8% -3.3% 30.0% 11.8% 79.9% 21% 12% 11% 12%
Charles River 41.6% 20.0% 26.3% -5.2% 43.7% 3.4% 35.0% 63.6% 210.8% 49% 32% 35% 25%
Neogen 51.3% 8.5% 14.0% 16.8% 24.6% -7.6% 14.5% 21.5% 87.1% 18% 9% 13% 13%
Opko 75.5% 18.4% 0.6% -7.5% -47.3% -38.6% -51.2% 168.7% -60.7% 15% -7% -19% -17%
Labcorp 5.5% 18.1% 14.6% 3.8% 24.2% -20.8% 33.9% 20.3% 64.6% 27% 8% 12% 10%
Idexx 14.6% 39.4% -1.6% 60.8% 33.4% 19.0% 40.4% 91.4% 585.5% 64% 47% 44% 47%
FTSE100 14.4% -2.7% -4.9% 14.4% 7.6% -12.5% 12.1% -14.3% 3.5% -2% -6% -2% 1%
DAX 25.5% 2.7% 9.6% 6.9% 12.5% -18.3% 25.5% 3.5% 27.7% 14% 2% 5% 5%
S&P500 29.6% 11.4% -0.7% 9.5% 19.4% -6.2% 28.9% 16.3% 83.8% 22% 12% 14% 13%
CAC40 18.0% -0.5% 8.5% 4.9% 9.8% -11.4% 26.4% -7.1% 19.7% 8% 1% 3% 4%
Long term (since IPO) Eurofins performance track record (Compounded Annual Growth Rates)
23Y CAGR IPO 27/10/1997 -31/12/2020
Eurofins Outperformance Factor
Eurofins 29.4%
FTSE100 1.3% 23.3x
DAX 5.6% 5.2x
S&P500 6.5% 4.5x
CAC40 3.1% 9.6x
Source: Bloomberg Based on share prices at close of 31 December of each year
Source: Bloomberg
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Definitions / Alternative Performance Measures (APMs)
Eurofins is providing in the consolidated financial statements certain alternative performance measures (non-IFRS information).
APMs used in the Consolidated Income Statement
Adjusted results – reflect the ongoing performance of the mature and recurring activities excluding “separately disclosed items”.
Separately disclosed items - include one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and
new acquisitions undergoing significant restructuring, share-based payment charges, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, gains/losses on disposal of businesses and transaction costs
related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions, net finance costs related to borrowing and investing excess cash and one-off financial effects (net of
finance income) and the related tax effects
EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction
costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions.
EBITAS – EBITDA less depreciation and amortisation.
Share-based payment charge and acquisition-related expenses, net – Share-based payment charge, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill, loss/gain on disposal and transaction costs
related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions.
EBIT – EBITAS less Share-based payment charge and acquisition-related expenses.
APMs used in the Interim Condensed Consolidated Cash flow Statement
Net capex – Acquisition of intangible assets, property, plant and equipment, less proceeds from the disposal of such assets
Free Cash Flow to the Firm – Net cash provided by operating activities, less Net capex.
APMs used in the Notes
Net debt – Borrowings, less cash and cash equivalents.
Net working capital – Inventories, trade receivables and contract assets, prepaid expenses and other current assets less trade accounts payable, contract liabilities and other current liabilities excluding accrued interest receivable
and payable.