Eurofins Scientific (ERF) EU Investor Day Presentation summary

Company overview and strategic positioning

• Operates around 900 laboratories in 61 countries, employing over 62,000 people and performing more than 450 million tests annually.

• Competitive advantages include a fully digital hub-and-spoke laboratory network and a strong focus on sustainability and ESG.

• Maintains a decentralised structure of entrepreneur-led companies, fostering agility, innovation, and risk segregation.

• Committed to robust financial controls, independent audits, and a majority-independent board.

• Disproved all allegations from Muddy Waters and confirmed integrity through independent audits.

Financial performance and objectives

• Revenue reached €6.515bn in 2023, with a mid-term target approaching €10bn by 2027 through organic growth and acquisitions.

• Adjusted EBITDA margin targeted at 24% by 2027, with profitability recovery underway after inflation and COVID-19 impacts.

• Free cash flow before investment in owned sites expected to approach €1.5bn by 2027, with net operating capex around €400m per year.

• Financial leverage at 1.9x as of June 2024, within the target range of 1.5x–2.5x, and strong access to over €1bn in undrawn credit lines.

• Return on Capital Employed (ROCE) excluding goodwill was 30% in 2023, with improvement expected as COVID-19 effects subside.

Growth drivers and investment strategy

• Organic growth averaging 6.5% per annum, complemented by bolt-on acquisitions with a €250m annual revenue contribution target.

• Start-ups continue to drive growth, with 319 initiated since 2000 and €523m in revenue from all start-ups created.

• Focus on innovation, digitalisation, automation, and aligning pricing to cost inflation.

• Strategic investments in IT infrastructure and laboratory network to enhance productivity and margin expansion.

• Plan to own large laboratory campuses by 2027 to optimise costs and risk management.