bioMérieux – Second-Quarter 2017 Business Review

Regulatory News:

bioMérieux (Paris:BIM), a world leader in the field of in vitro diagnostics, today released its quarterly business review for the six months ended June 30, 2017.

SALES

Consolidated sales rose to €1,134 million for the first six months of 2017, up from €1,001 million in the same period one year earlier. This represents growth of 13.3% as reported, including a positive currency effect of around €21 million. Organic growth (at constant exchange rates and scope of consolidation) came to 11.3% year-on-year, with FilmArray^® accounting for more than half of the increase.

⁽¹⁾ Currency effects are established by converting actual numbers at the average rates of year y-1. In practice, those rates are either average rates communicated by the ECB, or hedged rates if hedging instruments have been set up.

Second-quarter sales rose 9.1% on the same period of 2016 with one less billing day, consolidating the 13.7% increase reported in the three months to March 31. This vigorous growth was powered by a strong sales dynamic across all regions and particularly North America, which continued to post strong growth over the quarter. All strategic lines of bioMérieux's portfolio contributed to the momentum, led by FilmArray^® in molecular biology, VITEK^® in microbiology and the product ranges for industrial customers.

Sales for the second quarter and first half of 2017 may be summarized by region as follows:

⁽¹⁾ Including the Middle East and Africa.

• Operations in the Americas (45% of the consolidated total) continued to deliver a robust performance in the second quarter of 2017, with sales rising 17.0% year-on-year to €246 million. Sales ended the first half at €514 million, a very strong 18.7% increase over first-half 2016.
  • Sales in North America (39% of the consolidated total) were boosted by high instrument sales for both clinical and industrial applications and by double-digit growth in sales of reagents. Business was driven by the FilmArray^® molecular biology line and by microbiology lines, notably VITEK^® and BacT/ALERT^®. In addition, the VIDAS^® B•R•A•H•M•S PCT™ test delivered further growth despite a more competitive environment.
  • In Latin America, sales for the second quarter came in at around €39 million, up 13.3% on the same period in 2016. The acceleration in growth reflects a good performance from most countries in the region, along with an upturn in Brazil during the quarter.
• Sales in the Europe – Middle East – Africa region (38% of the consolidated total) came to €215 million for the quarter, up 2.8% year-on-year, and to €432 million for the first half, up 4.1% year-on-year.
  • In Western Europe (32% of the consolidated total), good performances in the UK, Switzerland and the Scandinavian countries spurred by instrument sales more than offset the slowdown in Spain and in certain Central European countries. Italy posted satisfactory growth of around 1.5%.
  • Sales in the Eastern Europe – Middle East – Africa region were up 11.0% in the second quarter compared to second-quarter 2016. Sales ended first half at €68 million up 10.1% year on year. All distribution regions and countries contributed to growth during the quarter with the exception of Russia, after a particularly strong performance in the first three months of the year.
• In the Asia-Pacific region (16% of the consolidated total), sales came to €103 million in second-quarter 2017, up 7.1% year-on-year, and to €185 million in the first half, a rise of 11.4% on first-half 2016.
  • In China, bioMérieux's third biggest market, sales were up around 6% over the quarter, which compares to a strong dynamic over the same period in 2016. Growth in sales was spurred by clinical microbiology and molecular biology lines and by industrial applications.
  • Faster-paced growth in India compared to the first quarter and good performances in the Southeast Asia region more than offset modest sales in Japan and South Korea in second-quarter 2017.

Sales for the second quarter and first half of 2017 may be summarized by application as follows:

⁽¹⁾ Including VIDAS^®: up 4.6% at constant exchange rates and scope of consolidation in Q2; up 5.8% in H1.
⁽²⁾ Including FilmArray^®: €82 million in Q2 and €183 million in H1.

• Sales of clinical applications, which account for approximately 81% of the consolidated total, rose by 11.2% year-on-year to €457 million for the quarter and by 12.8% to €917 million for the first half.
  • In microbiology, the VITEK^® line posted vigorous gains in most regions. Sales of BacT/ALERT^® slowed slightly over the quarter, due mainly to a high comparison basis for Chinese operations resulting from the country's strong performance in the second quarter of 2016. Culture media also made a significant contribution to second-quarter sales growth.
  • In immunoassays, sales of the VIDAS^® line were up by almost 5% over the second quarter, with high medical value tests accounting for around half of the growth. Sales of this line were also powered by countries in the Middle East and Africa, which value the line's ease-of-use, flexibility and robustness.
  • Growth in molecular biology lines was driven by the ongoing fast-paced development of FilmArray^®, and in particular the Gastrointestinal and Meningitis/Encephalitis panels. An increasing proportion of laboratories are using several panels, underlining the importance of being able to offer customers a diverse and comprehensive menu such as what today exists on the FilmArray^® system. International sales also continued to rise, with the contribution from outside the United States representing almost 12% of the total in the first half compared with 9% one year earlier.
• Sales of industrial applications, which represent around 18% of the consolidated total, amounted to €102 million in second-quarter 2017, up 6.4% on the three months to June 30, 2016 after a remarkable performance in Q1. Sales ended the first half at €202 million, up more than 10% year-on-year. The second quarter benefited from the fast-paced development of alternative methods, particularly VIDAS^® immunoassay and GENE-UP^® molecular biology lines for customers in the food industry, and the CHEMUNEX^® cytometry line for pharmaceutical markets. Traditional methods using culture media also continued to perform well.
• The second quarter saw balanced organic sales growth. Sales of reagents and services rose 9.1% and accounted for some 90% of total sales. Instrument sales were up 9.2%.

2017 OBJECTIVES

In light of the robust organic growth reported in the first half and based on information available to bioMérieux, the Company is confident that it will achieve the higher end of its target organic sales growth range of between 8% and 9%.

Further details of the Company's financial objectives for the year will be given on publication of its first-half financial results, taking into account better-than-initially expected exchange rates in the first half of 2017 and tighter monetary conditions forecast for the second half of the year in light of recent gains in the euro against several other currencies

OTHER INFORMATION

• Net debt
  Net debt amounted to €280 million at June 30, 2017 versus €275 million at December 31, 2016.
• Installed base
  The installed base at June 30, 2017 stood at approximately 89,400 instruments, including 4,800 FilmArray^® units. This represented an increase of 2,500 new instruments over the 6-month period, including around 300 FilmArray^® units.

SECOND-QUARTER OPERATING HIGHLIGHTS

• CE-marking and FDA approval of the FilmArray^® RP2plus and RP2, new extended, faster and more sensitive respiratory panels
  On April 20, 2017, bioMérieux announced that its FilmArray^® RP2plus test, a new generation of FilmArray^® respiratory panels, was CE-marked. The FilmArray^® RP2plus simultaneously tests for 22 pathogens responsible for respiratory tract infections in a reduced processing time of 45 minutes and offers improved overall sensitivity. This new improved version of the FilmArray^® respiratory panel includes two additional pathogens: Middle East Respiratory Syndrome coronavirus (MERS-CoV), and the Bordetella parapertussis bacteria, the causative agent of whooping cough. On June 1, 2017, bioMérieux announced that its FilmArray^® RP2 panel, which includes the same pathogens as the RP2plus test except MERS-CoV, had received FDA clearance in the US.
• FDA clearance for Rapidec^® Carba NP
  On April 27, 2017, bioMérieux obtained FDA clearance to market and sell Rapidec^® Carba NP, a manual, high medical value test used to confirm the detection of carbapenemase-producing bacteria in agar cultures. This test gives reliable results in under two hours, making it the quick and easy way to control carbapenemase producers, improving patient management and controlling healthcare-associated infections. Carbapenemase are a group of enzymes that hydrolyze carbapenems, a sub-class of antibiotics with the broadest spectrum of antibacterial activity, used primarily for the treatment of multi-drug resistant bacterial infections, exclusively in hospital settings.
• bioMérieux's General Shareholders' Meeting approves the appointment of two directors
  On May 30, 2017, the General Shareholders' Meeting of bioMérieux approved the appointment of two independent directors: Fanny Letier with immediate effect, and Marie-Paule Kieny as from August 28, 2017. In compliance with the law of January 27, 2011 concerning gender equality on boards of directors and supervisory boards and equal opportunity in the workplace, the Board of Directors comprises 10 members, including 4 women.

INVESTOR CALENDAR

First-half 2017 results: August 30, 2017, before start of trading
Third-quarter 2017 sales: October 18, 2017, before start of trading

The above forward-looking statements are based, entirely or partially, on assessments or judgments that may change or be modified, due to uncertainties and risks related to the Company's economic, financial, regulatory and competitive environment, notably those described in the 2016 Registration Document. Accordingly, the Company cannot give any assurance nor make any representation as to whether the objectives will be met. The Company does not undertake to update or otherwise revise any forecasts or objectives presented herein, except in compliance with the disclosure obligations applicable to companies whose shares are listed on a stock exchange.

ABOUT BIOMÉRIEUX

Pioneering Diagnostics

A world leader in the field of in vitro diagnostics for more than 50 years, bioMérieux is present in more than 150 countries through 42 subsidiaries and a large network of distributors. In 2016, revenues reached €2,103 million, with more than 90% of international sales.

bioMérieux provides diagnostic solutions (systems, reagents, software) which determine the source of disease and contamination to improve patient health and ensure consumer safety. Its products are mainly used for diagnosing infectious diseases. They are also used for detecting microorganisms in agri-food, pharmaceutical and cosmetic products.

bioMérieux is listed on the Euronext Paris stock market
Symbol: BIM - ISIN Code: FR0010096479
Reuters: BIOX.PA/Bloomberg: BIM.FP

Corporate website: www.biomerieux.com. Investor website: www.biomerieux-finance.com

APPENDIX: QUARTERLY SALES DATA

Sales by Region in € millions

⁽¹⁾ Including the Middle East and Africa.

% Change in Sales by Region

⁽¹⁾Including the Middle East and Africa.

Sales by Application in € millions

(1) Including FilmArray^® sales.

% Change in Sales by Application

(1) Including FilmArray^® sales.
(2) At constant exchange rates and scope of consolidation.

NB: Unless otherwise stated, growth is expressed year-on-year at constant exchange rates and scope of consolidation (like-for-like).

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