Eurofins Scientific (ERF) NA Investor Day 2024 presentation summary

Business overview and key figures

• Operates around 900 laboratories in 61 countries, with over 62,000 employees and 1,000+ independent companies.

• Performs over 450 million tests annually, leveraging 200,000+ validated analytical methods.

• Competitive advantages include a fully digital hub-and-spoke laboratory network and strong innovation capabilities.

• Committed to sustainability and ESG principles.

• 37-year track record of value creation through growth, productivity, and margin expansion.

Financial performance and outlook

• Revenue expected to approach €7bn in 2027, with average organic growth of 6.5% per annum and €250m annual revenue from acquisitions.

• Adjusted EBITDA margin targeted at 24% by 2027, with profitability recovery underway and >€500m improvement vs 2019.

• Free cash flow before investment in owned sites targeted at €800m–€840m in 2024 and approaching €1.5bn by 2027.

• Financial leverage at 1.9x as of June 2024, within the 1.5x–2.5x target range, with no major near-term refinancing needs.

• Return on capital employed (ROCE) expected to improve, with 30% ROCE excluding goodwill in 2023 despite post-COVID and inflationary headwinds.

Growth strategy and investments

• Growth driven by organic expansion, bolt-on M&A, and a robust start-up program, with 319 start-ups and 90 blood collection points initiated since 2000.

• Start-ups contributed €523m in revenues in 9M 2024 and +90bps to organic growth.

• Focus on self-financing through increased cash conversion and disciplined capital allocation, including prioritizing ownership of strategic sites.

• Prudent M&A strategy with a 16% pre-tax ROCE hurdle by year 3 and average €250m annual revenue from acquisitions.

• Ongoing investments in IT, digitalization, automation, and innovation to drive productivity and margin improvement.