bioMérieux – 2017 Financial Results

  • Excellent sales momentum in 2017 with a 10.2% increase in sales, at constant exchange rates and scope of consolidation:
    • €2,288 million in sales
    • Up 8.8% as reported
  • Strong 12.4% increase in contributive operating income before non-recurring items to €335 million, in line with the objectives set
  • Fast growth in free cash flow to €164 million versus €85 million in 2016
  • 2018 objectives:
    • Organic growth in sales of between 8% and 9%, at constant exchange rates and scope of consolidation
    • Contributive operating income before non-recurring items of between €325 million and €345 million, despite a negative currency impact anticipated at around €40 million

Alexandre Mérieux, Chairman and Chief Executive Officer, said: “bioMérieux delivered another solid operating and financial performance in 2017. Thanks to a robust sales momentum and careful control of operating expenses, the Company recorded sharp increases in contributive operating income before non-recurring items, net income and free cash flow. Buoyed by these results, we head into 2018 with the ambition to sustain this dynamic while strengthening our commitment to innovation and R&D.”

MARCY L’ÉTOILE, France--()--Regulatory News:

The Board of Directors of bioMérieux (Paris:BIM), a world leader in the field of in vitro diagnostics, met on February 27 under the chairmanship of Alexandre Mérieux and approved the audited consolidated financial statements for the year ended December 31, 2017.

Consolidated data

In € millions

  2017   2016  

% change
as reported

Sales   2,288   2,103   +8.8%

Contributive operating income before
non-recurring items*

335 298 +12.4%
Operating income** 315 282 +11.5%
Net income of consolidated companies 238 179 +32.6%
Earnings per share (in €)   €2.02   €1.52    
*  

Contributive operating income before non-recurring items corresponds to operating income before non-recurring BioFire acquisition and
integration costs and before accounting entries relating to the company’s purchase price allocation.

**

Operating income is the sum of contributive operating income before non-recurring items, BioFire acquisition fees and purchase price
amortization expense and “material, extraordinary and non-recurring items” recognized in “Other non-recurring income and expenses from
operations, net”.

2017 OPERATING HIGHLIGHTS

Operating highlights of the year are described in Appendix 1 below.

FINANCIAL RESULTS

SALES

Consolidated sales came in at €2,288 million for the twelve months ended December 31, 2017, up 10.2% at constant exchange rates and scope of consolidation on the €2,103 million posted for the same period in 2016 and slightly outperforming the objective of 9% to 10%. The negative currency effects reported in the second half as the euro strengthened against a number of currencies, notably the U.S. dollar, dampened growth reported in euros, which nonetheless reached 8.8%.

Analysis of sales

In € millions

       
SALES – TWELVE MONTHS ENDED DECEMBER 31, 2016   2,103    
Currency effect(1)   -29   -1.4%
Changes in scope of consolidation(2) -1 0.0%
Organic growth
(at constant exchange rates and scope of consolidation)
+215 +10.2%
SALES – TWELVE MONTHS ENDED DECEMBER 31, 2017   2,288   +8.8%
(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.

(2) Changes in scope of consolidation are established:

-- for acquisitions during the period, by deducting from the period’s sales the amount of sales generated during the period by
the acquired entities from the date of their inclusion in the scope of consolidation;

-- for acquisitions during the prior period, by deducting from the period’s sales the amount of sales generated during the
months in the prior period in which the acquired entities were not consolidated;

-- for disposals during the period, by adding to the period’s sales the amount of sales generated by the disposed entities during
the prior period for the months in which the entities were no longer consolidated in the current period;

-- for disposals during the prior period, by adding to the period’s sales the amount of sales generated by the disposed entities
during the prior period.

An analysis of sales growth by region and by application is presented in Appendix 2.

CONSOLIDATED INCOME STATEMENT

  • Gross profit

Gross profit for the year stood at €1,212 million or 53.0% of sales, a significant increase from 52.3% the year before. The rise in gross profit was driven by growth in volumes and an improvement in the product mix, with the BIOFIRE FILMARRAY® product line making remarkable progress. These factors more than offset the increase in depreciation after the commissioning of several new production units (Durham, Salt Lake City and Marcy l’Étoile).

  • Contributive operating income before non-recurring items

    Contributive operating income before non-recurring items amounted to €335 million for 2017 compared to €298 million reported for the same period in 2016, representing robust 12.4% growth. Contributive operating income before non-recurring items as a percentage of sales came to 14.6% in 2017, up from 14.2% the previous year. The Group’s margins therefore improved despite the €29 million provision recorded in relation to certain share plans payable in cash in the United States and the negative year-on-year currency effect of around €5 million.
    • Selling, general and administrative expenses amounted to €603 million, or 26.4% of sales, compared with €570 million, or 27.1% of sales, in 2016. General and administrative expenses grew less quickly than sales and also benefited from a more accurate reallocation of IT expenses to the various lines in the income statement. The decline in general and administrative expenses as a percentage of sales more than offset the additional selling expenses related to the roll-out of the BIOFIRE FILMARRAY® product line.
    • R&D expenses came to €304 million in 2017, or 13.3% of sales, representing a significant increase from €272 million, or 12.9% of sales, in 2016. The rise in R&D expenses was driven, as expected, by increased R&D activity relating notably to the BIOFIRE FILMARRAY® line and to certain microbiology product lines.
    • Research tax credits and grants came to €24 million for the year, unchanged from 2016 despite the increase in research efforts, due to a less favorable credit rate in the United States than in France.
    • As anticipated by the Company, other operating income, which mainly comprises net income from royalties, amounted to just €7 million in 2017 versus €15 million in the prior year, primarily because certain patents licensed to third parties expired during 2016.
  • Operating income

BioFire acquisition expenses totaled €18 million in 2017, compared with €25 million in 2016 when the Group had recorded the balance of the retention plan implemented at the time of the acquisition. These expenses primarily comprised the depreciation/amortization charged against assets valued at the acquisition date (stable year-on-year).

Other non-recurring income and expenses from operations amounted to €1.6 million, versus €9.9 million the previous year, when the Group had recycled certain translation adjustments to the income statement.

As a result, operating income ended the year at €315 million, up 11.5% on the €282 million reported in 2016.

  • Net income of consolidated companies

Net financial expense remained stable at €22.2 million in 2017, versus €23.2 million in 2016.

The cost of net debt came to €16.2 million, versus €17.6 million in the prior year, and other financial expenses totaled €6.2 million, versus €5.6 million in 2016.

The Group’s effective tax rate at December 31, 2017 stood at 18.6%, compared with 30.8% at end-2016. It benefited in 2017 from the €30 million in non-cash, non-recurring income recorded primarily in relation to the revaluation of deferred tax assets and liabilities resulting from tax reform in the United States. It also benefited, to a lesser extent, from income recorded due to the cancellation in France of a tax on dividends, which was partly offset by the exceptional tax introduced to replace it. Lastly, the Group recorded an additional provision on some outstanding tax litigations. Excluding these non-recurring items, the Group’s effective tax rate would have been stable year-on-year at around 28%.

Net income of consolidated companies totaled €238 million in 2017, up a strong 32.6% on the €179 million reported in 2016.

CASH MANAGEMENT AND FINANCE

  • Net cash from operating activities

Net cash from operating activities ended the year at €357 million, representing a year-on-year increase of nearly 7%.

EBITDA1 rose by 8% in 2017 to €475 million, from €441 million in the prior year, lifted by the growth in contributive operating income before non-recurring items and net additions to depreciation and amortization of operating items.

Despite robust growth in the Group’s sales, the increase in working capital requirement during 2017 came to just €38 million, close to the €33 million increase recorded in 2016, under the combined impact of the following factors:

  • Against the backdrop of growth described above, inventories remained virtually stable in 2017 after increasing by €41 million in 2016, primarily reflecting a year-on-year improvement in inventory turnover of more than 10%.
  • Trade receivables were up by just €26 million year-on-year, versus a rise of €10 million in 2016, and the payment collection period improved significantly to end the year at 73 days, versus 80 days a year earlier.
  • The change in trade payables was virtually stable year-on-year.
  • Other working capital requirement items increased by €4 million in 2017, versus a decrease in 2016, primarily due to outlays relating to the retention plan implemented on the acquisition of BioFire.

Income tax paid stood at €91 million, an increase – driven by the United States – from the €81 million recorded the previous year.

  • Net cash used in investing activities

As expected, capital expenditure outlays declined significantly over the period to €183 million, including €106 million in industrial capital expenditure versus €233 million and €154 million respectively in 2016. The decline reflected the completion of capital projects designed to increase capacity at several production sites.

As a result, free cash flow2 nearly doubled in 2017 to reach €164 million, from €85 million in 2016.

Purchases of non-current financial assets, net of disposals, amounted to €16 million, versus €30 million in the prior year, and mainly corresponded to purchases of non-controlling interests in Banyan Biomarker and Qvella, and to the transfer to bioMérieux of Sysmex’s stake in Sysmex bioMérieux Co., Ltd.

  • Net cash used in financing activities

Net cash used in financing activities totaled €57 million, versus €52 million in 2016. In June 2017, the Company paid €39.4 million in dividends, unchanged from the 2016 dividend, and bought back shares for €1 million under the share buyback program, compared with €14 million the previous year.

  • Net debt

Consolidated net debt amounted to €156 million at December 31, 2017 (including €32.8 million in liabilities to employees), versus €275 million a year earlier. The Company has issued €300 million in bonds maturing in October 2020, and holds an undrawn syndicated line of credit for €500 million maturing on January 26, 2023, with an option to extend the facility for an additional year.

________________
1 EBITDA corresponds to the aggregate of contributive operating income before non-recurring items, and operating depreciation and amortization.
2 Free cash flow corresponds to cash generated from operations, net of cash used in investing activities.

DIVIDEND

The Board of Directors will recommend that shareholders at the Annual General Meeting on May 17, 2018 approve a dividend of €0.34 per share. This would represent a total payout of €40.2 million, to be paid on June 7, 2018 as compared to €39.5 million in 2017.

OTHER INFORMATION

  • Installed base

At December 31, 2017, the installed base amounted to approximately 92,800 instruments, versus 86,900 instruments at December 31, 2016.

  • Human resources

At December 31, 2017, the Group had around 10,400 full-time-equivalent employees and temporary staff versus 9,800 at December 31, 2016.

SUBSEQUENT EVENTS

  • Guillaume Bouhours appointed Corporate Vice-President and Chief Financial Officer of bioMérieux

bioMérieux announced the appointment of Guillaume Bouhours as Corporate Vice-President and Chief Financial Officer and a member of its Executive Committee. He will take over from Claire Giraut, who has decided to retire, and will head up the same departments, namely Finance, Purchasing and Information Systems. A graduate of École Polytechnique and École des Mines ParisTech, Guillaume Bouhours was previously Group President – Access & Mobility at Wabtec. Prior to that, he held the position of Chief Financial Officer for the Faiveley Transport group from 2010 to 2016. The appointment will be effective as from March 2018.

2018 OBJECTIVES

In 2018, bioMérieux aims to maintain the strong sales momentum achieved over the past two years. The Company has set itself the objective of achieving organic growth in sales of between 8% and 9%, at constant exchange rates and scope of consolidation. Growth reported in euros, however, is expected to be below this range due to strongly negative currency effects estimated at around €120 million, stemming primarily from the decline against the euro of the U.S. dollar and certain emerging market currencies. Given the severity of the flu epidemic in the first two months of 2018, bioMérieux is anticipating further robust growth for its BIOFIRE FILMARRAY® product line, which is expected to boost sales in the first quarter more than in the following quarters.

The exchange rate fluctuations forecast for 2018 are also expected to have an impact on the Company’s contributive operating income before non-recurring items, of around €40 million. In addition, bioMérieux intends to step up its R&D efforts in the area of syndromic diagnosis of infectious diseases while maintaining its leadership position in its other product lines. As a result, R&D expenses could represent approximately 14% of the Company’s sales in 2018. In light of the above, bioMérieux has set its 2018 target for contributive operating income before non-recurring items at between €325 million and €345 million, at current exchange rates.

INVESTOR CALENDAR

First-quarter sales:         April 19, 2018, before start of trading
Annual General Meeting: May 17, 2018
Second-quarter sales: July 19, 2018, before start of trading
First-half 2018 results: September 5, 2018, before start of trading
Third-quarter sales: October 18, 2018, 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 over 50 years, bioMérieux is present in more than 150 countries through 43 subsidiaries and a large network of distributors. In 2017, revenues reached €2.3 billion, with over 90% of sales outside of France.

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: FR0013280286

Reuters: BIOX.PA/Bloomberg: BIM.FP

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

APPENDIX 1: 2017 OPERATING HIGHLIGHTS

  • Governance
    • The bioMérieux Board of Directors’ meeting on December 15, 2017 approved the appointment of Alexandre Mérieux as Chairman and Chief Executive Officer of the Company, effective from that date. Alexandre Mérieux took over from Jean-Luc Bélingard, who had chaired the Company since 2010 and who will remain a director of bioMérieux and Vice-President of Institut Mérieux, where he is responsible for strategy and institutional relations.
    • On May 30, 2017, the Annual General Meeting approved the appointment of two new independent directors: Fanny Letier and Marie-Paule Kieny. 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 now comprises 10 members, including 4 women.
  • Commercial offer

    During 2017, bioMérieux enhanced its commercial offer in several areas:
    • In February 2017, bioMérieux received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for the expanded use of VIDAS® BRAHMS PCT™, making it the first procalcitonin test to receive FDA clearance to help encourage appropriate use of antibiotics in respiratory infections and sepsis.
    • In April 2017, bioMérieux announced that BACT/ALERT® VIRTUO™ had received 510(k) clearance from the FDA, making this system available in the United States after its launch in Europe. The BACT/ALERT® VIRTUO™ system is a fully automated blood culture system which enables faster detection of pathogens by clinical microbiology laboratories to help deliver optimal patient care.
    • On April 20, 2017, bioMérieux announced that its BIOFIRE FILMARRAY® RP2plus test, a new generation of FILMARRAY® respiratory panels, was CE-marked. The BIOFIRE 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. On June 1, 2017, bioMérieux announced that its BIOFIRE FILMARRAY® RP2 panel, which includes the same pathogens as the RP2plus test except for MERS-CoV, had received FDA clearance in the United States.
    • 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. The test gives reliable results in under two hours, making it a quick and easy way to improve patient management and control healthcare-associated infections. Carbapenemases 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.
    • As of June 2017, the automated VIDAS® D-DIMER test, cleared to exclude the diagnosis of deep vein thrombosis and pulmonary embolism in outpatients, is authorized for extended use. It can now be used to help guide the duration of long-term oral anticoagulant therapy in women with a first unprovoked venous thromboembolism (VTE).
    • In July 2017, bioMérieux announced that its rapid pathogen identification system VITEK® MS had received 510(k) clearance from the FDA for the identification of new pathogens. The expanded database includes more than 15,000 distinct strains and, for the first time, enables the safe identification of the Mycobacterium tuberculosis (TB) group, the most frequent non-tuberculous mycobacteria (NTM), Nocardia and the most medically important molds.
    • During the year, bioMérieux launched two new test strips to determine the susceptibility of multi-drug resistant organisms (MDROs) to antibiotics.
      ETEST® Ceftolozane/Tazobactam and ETEST® Ceftazidime/Avibactam strips are used to assess the susceptibility of Gram-negative aerobic bacteria such as Enterobacteriaceae and P. aeruginosa to new antibiotics indicated in the treatment of infections in adult patients for whom there are limited therapeutic options.
    • During the fourth quarter, bioMérieux expanded its hepatitis panel, which already included diagnostic tests for hepatitis A, B and C, with the launch of two VIDAS® hepatitis E tests. Hepatitis E is a widely underdiagnosed liver disease that is prevalent all over the world. It is caused by infection with the hepatitis E virus which is mainly transmitted by the fecal-oral route, particularly through contaminated water and some undercooked meats. It is a serious pathology, since it can lead to fulminant or chronic hepatitis which can prove fatal if not properly treated.
  • Business development
    • In January 2017, bioMérieux and Banyan Biomarkers, an innovative biomarkers company specializing in traumatic brain injuries, announced that they had entered into a partnership. Under the terms of the agreement, bioMérieux obtains the rights to develop and market Banyan’s proprietary tests worldwide for use on the VIDAS® platform in the field of in vitro diagnostics.
    • bioMérieux and Lumed, a leading-edge software firm specialized in healthcare, signed a partnership for the distribution of the APSS (Antimicrobial Prescription Surveillance System) and DATA software suites designed by Lumed. Drawing on data imported from each patient’s electronic health record, the APSS is a computerized clinical decision support system designed for hospital pharmacists and antimicrobial stewardship teams. It enables them to monitor clinical information, be alerted as soon as important information becomes available, and verify that the ongoing treatment remains appropriate. The agreement gives bioMérieux the rights to market the software in Canada, the United States and Europe, and thereby enrich its line-up of solutions for the prevention of antibiotic-resistant infections, which are a major global healthcare threat.
    • In November 2017, bioMérieux joined other investors in a series B financing round for Qvella, a Canadian molecular biology company with the primary goal of dramatically reducing time to results in the diagnosis of infectious diseases. It is developing new electrical lysis and sample treatment technology which would allow patients’ blood samples to be analyzed directly. Following its investment, bioMérieux owns less than 10% of Qvella and will record these shares in its balance sheet.
  • Quality
    • During the third quarter, bioMérieux received the closeout letter from the FDA related to the 2012 warning letter of its Durham, North Carolina facility dedicated to the manufacturing of the BACT/ALERT® blood culture bottles.

APPENDIX 2: SALES BY REGION AND APPLICATION

Sales by Region

In € millions

 

12 months
ended
Dec. 31, 2017

 

12 months
ended
Dec. 31, 2016

 

%
change
as reported

 

%
change
like-for-like

Europe(1)   878.3   851.1   +3.2%   +3.9%
Americas 1,006.1 877.2 +14.7% +16.5%
North America 849.8 739.2 +15.0% +17.2%
Latin America 156.3 138.0 +13.3% +13.2%
Asia-Pacific 397.2 364.7 +8.9% +11.0%
TOTAL FROM THE REGIONS   2,281.6   2,093.1   +9.0%   +10.5%
Applied Maths 3.4 3.8
R&D-related revenue 3.1 6.4
TOTAL SALES   2,288.2   2,103.2   +8.8%   +10.2%

(1) Including the Middle East and Africa.

Sales by Application

In € millions

 

12 months
ended
Dec. 31, 2017

 

12 months
ended
Dec. 31, 2016

 

%
change
as reported

 

%
change
like-for-like

Clinical Applications   1,850.1   1,678.0   +10.3%   +11.7%
Microbiology 946.4 897.3 +5.5% +6.7%
Immunoassays(1) 457.2 451.7 +1.2% +2.5%
Molecular biology(2) 440.4 322.8 +36.4% +38.6%
Other 6.0 6.1 -1.7% +13.5%
Industrial Applications 411.8 379.9 +8.4% +9.8%
BioFire Defense 19.7 35.2 -44.0% -42.9%
Applied Maths 3.4 3.8
R&D-related revenue 3.1 6.4
TOTAL SALES   2,288.2   2,103.2   +8.8%   +10.2%

(1) Of which VIDAS®: up 3.1% in 2017.

(2) Of which BIOFIRE FILMARRAY®: €368 million over full-year 2017.

APPENDIX 3: BIOMÉRIEUX CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017

CONSOLIDATED INCOME STATEMENT

   
In € millions   2017   2016  
SALES   2,288.2   2,103.2  
Cost of sales (1,076.4) (1,002.5)
GROSS PROFIT   1,211.8   1,100.7  
OTHER OPERATING INCOME   31.2   38.5  
Selling and marketing expenses (447.5) (402.1)
General and administrative expenses (156.4) (167.4)
Research and development expenses (304.4) (271.9)
TOTAL OPERATING EXPENSES   (908.3)   (841.4)  

CONTRIBUTIVE OPERATING INCOME BEFORE
NON-RECURRING ITEMS

 

334.7

 

297.8

 

BioFire acquisition fees and amortization expense(a) (18.2) (25.2)
OPERATING INCOME BEFORE NON-RECURRING ITEMS   316.5   272.6  
Other non-recurring income and expenses

from operations, net

(1.6) 9.9
OPERATING INCOME   314.9   282.5  
Cost of net debt (16.2) (17.6)
Other financial income and expenses, net (6.2) (5.6)
Income tax (54.5) (79.8)
Share in earnings (losses) of equity-accounted companies (0.4) (0.2)
NET INCOME OF CONSOLIDATED COMPANIES   237.6   179.2  
Attributable to non-controlling interests (0.6) 0.1
ATTRIBUTABLE TO OWNERS OF THE PARENT   238.1   179.1  
Basic earnings per share €2.02 €4.55 (b)
Diluted earnings per share   €2.02   €4.55 (b)

(a) corresponds to the acquisition and integration costs of BioFire and accounting
entries relating to the company's purchase price allocation

(b) based on the number of shares at the period-end: 39,453,740 shares.

CONSOLIDATED BALANCE SHEET

   
ASSETS
In € millions   Dec. 31, 2017   Dec. 31, 2016
 
Intangible assets 430.7 492.6
Goodwill 442.7 470.6
Property, plant and equipment 711.4 734.5
Non-current financial assets 57.9 36.9
Investments in equity-accounted companies 0.1 0.5
Other non-current assets 14.1 18.0
Deferred tax assets 51.6 92.8
NON-CURRENT ASSETS   1,708.5   1,845.8
Inventories and work-in-progress 380.3 404.4
Trade receivables 460.1 465.8
Other operating receivables 75.1 79.8
Current tax receivables 36.1 25.7
Non-operating receivables 15.7 28.8
Cash and cash equivalents 312.1 178.6
CURRENT ASSETS   1,279.4   1,183.0
ASSETS HELD FOR SALE   2.1   0.0
TOTAL ASSETS   2,990.0   3,028.8
 
EQUITY AND LIABILITIES
In € millions   Dec. 31, 2017   Dec. 31, 2016
 
Share capital 12.0 12.0
Additional paid-in capital and reserves 1,487.5 1,428.0
Attributable net income for the period 238.1 179.1
EQUITY ATTRIBUTABLE TO OWNERS OF THE PARENT   1,737.6   1,619.1
NON-CONTROLLING INTERESTS   (0.9)   2.2
TOTAL EQUITY   1,736.7   1,621.4
Long-term borrowings and debt 391.1 365.4
Deferred tax liabilities 103.8 167.3
Provisions 106.7 115.0
NON-CURRENT LIABILITIES   601.5   647.6
Short-term borrowings and debt 76.9 87.9
Provisions 34.1 36.8
Trade payables 161.3 175.6
Other operating payables 300.7 324.2
Current tax payables 24.2 37.2
Non-operating payables 54.6 98.2
CURRENT LIABILITIES   651.8   759.8
LIABILITIES RELATED TO ASSETS HELD FOR SALE   0.0   0.0
TOTAL EQUITY AND LIABILITIES   2,990.0   3,028.8

CONSOLIDATED CASH FLOW STATEMENT

   
In € millions   2017   2016
Net income of consolidated companies 237.5 179.2
- Share in earnings (losses) of equity-accounted companies 0.4 0.2
- Cost of net debt 16.2 17.6
- Other financial income and expenses, net 6.2 5.6
- Income tax expense 54.5 79.8
- Net additions to depreciation and amortization of operating items – long-term provisions 140.5 143.1
- Non-recurring income and expenses, BioFire acquisition fees and amortization expense 19.9 15.3
EBITDA (before non-recurring items) 475.2 440.9
Other non-recurring income and expenses from operations

(excluding net additions to non-recurring provisions and capital gains or losses on disposals of

non-current assets)

(1.2) 0.0
Other financial income and expenses, net

(excluding provisions and disposals of non-current financial assets)

(6.1) (6.4)
Net additions to operating provisions for contingencies and losses 5.6 12.3
Changes in fair value of financial instruments 2.3 (1.5)
Share-based payment 7.5 3.5
Elimination of other non-cash/non-operating income and expenses 8.1 7.9
Change in inventories (4.3) (41.1)
Change in trade receivables (25.6) (10.0)
Change in trade payables (4.1) (3.4)
Change in other operating working capital (3.8) 21.8
Change in operating working capital(a) (37.8) (32.7)
Other non-operating working capital 1.5 (3.3)
Change in non-current non-financial assets and liabilities 2.0 4.3
Change in working capital (34.3) (31.7)
Income tax paid (91.5) (81.5)
NET CASH FROM OPERATING ACTIVITIES   357.5   335.6
Purchases of property, plant and equipment and intangible assets (183.5) (233.0)
Proceeds from disposals of property, plant and equipment and intangible assets 7.9 5.3
Purchases/proceeds from disposals of non-current financial assets, net (14.1) 8.1
Impact of changes in Group structure 9.3 (37.6)
NET CASH USED IN INVESTING ACTIVITIES   (180.4)   (257.2)
Cash capital increase 0.0 0.0
Purchases and sales of treasury shares (0.9) (14.1)
Dividends paid to owners (39.4) (39.5)
Cost of net debt (16.2) (17.6)
Change in committed debt (0.6) 18.6
Change in ownership interest not resulting in a change in control (11.5) 0.0
NET CASH USED IN FINANCING ACTIVITIES   (68.7)   (52.5)
NET CHANGE IN CASH AND CASH EQUIVALENTS   108.4   25.9
 
NET CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR   146.7   136.7
Impact of changes in exchange rates on net cash and cash equivalents 5.4 (15.9)
NET CASH AND CASH EQUIVALENTS AT END OF YEAR   260.4   146.7
 
(a) Including additions to and reversals of short-term provisions.

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Investor Relations
bioMérieux
Sylvain Morgeau, +33 (0)4 78 87 22 37
investor.relations@biomerieux.com
or
Media Relations
bioMérieux
Aurore Sergeant, +33 (0)4 78 87 20 53
media@biomerieux.com
or
Image Sept
Laurence Heilbronn, +33 (0)1 53 70 74 64
lheilbronn@image7.fr
or
Claire Doligez, +33 (0)1 53 70 74 48
cdoligez@image7.fr

Contacts

Investor Relations
bioMérieux
Sylvain Morgeau, +33 (0)4 78 87 22 37
investor.relations@biomerieux.com
or
Media Relations
bioMérieux
Aurore Sergeant, +33 (0)4 78 87 20 53
media@biomerieux.com
or
Image Sept
Laurence Heilbronn, +33 (0)1 53 70 74 64
lheilbronn@image7.fr
or
Claire Doligez, +33 (0)1 53 70 74 48
cdoligez@image7.fr