BioMerieux : Annual Report 2019

2019 ANNUAL REPORT

	4	EDITO
	6	2019 AT A GLANCE
	8	FOCUS ON LIFE AT OUR SITES IN 2019
	10	AN INTERNATIONAL SUCCESS
	11	CLINICAL APPLICATIONS
		n Diagnostic testing: instrumental in combating
		antimicrobial resistance
		n An extensive range of solutions to fight sepsis
		n A game changer: diagnostic tests for early risk
		assessment of acute kidney injury (AKI)
		n Expanding our portfolio for the diagnosis of
		respiratory infections
		INDUSTRIAL APPLICATIONS
	23 n Diagnostic tests, essential for pharmaceutical
		product quality
		n Diagnostics for food safety
	30	CLOSE TO OUR CUSTOMERS WITH
	A RANGE OF SERVICES
	32	A TRADITION OF OPEN INNOVATION
		CORPORATE RESPONSIBILITY
	38 n Committed to being a socially responsible company
		with a humanist vision
		n Committed to people
		n Committed to our workforce
		n Committed to respecting the environment
		n Committed to ethics in business
	65	CORPORATE GOVERNANCE AND
	FINANCIAL TABLES
		n Corporate Governance
		n Key figures
		n Financial tables
		n The bioMérieux share
	74	GLOSSARY & REFERENCES

bioMérieux,

a family commitment to combat infectious diseases

bioMérieux is first and foremost a human and scientific adventure that began more than 55 years ago.

Our expertise and our commitment to expand the frontiers of knowledge in biology are rooted in

an entrepreneurial story that has been ongoing for more than a century.

In 1897, Marcel Mérieux, who had studied under Louis Pasteur, founded his laboratory in Lyon where he developed the first anti-tetanus sera. From the very beginning, the Institut Mérieux laid the groundwork for a bio-industrial organization that would make its mark on both vaccinology and later on the diagnosis of infectious diseases on a global scale.

bioMérieux, headquartered in Marcy l'Étoile, France, was created in 1963 by Alain Mérieux and today employs nearly 12,000 people.

The Company specializes in providing in vitro diagnostic solutions that determine the source of a disease or contamination to improve patient health and ensure consumer safety. Our products are mainly used in

the clinical field for diagnosing infectious diseases, and in the industrial field for the detection of microorganisms in agri-food, pharmaceutical and cosmetic products.

bioMérieux is present in 44 countries and serves more than 160 countries with the support of a large network of distributors. Over 90% of sales are generated internationally.

Since 2014, Alexandre Mérieux, the great-grandson of Marcel, has been at the helm of this family-owned company as Chief Executive Officer. In December 2017, he was appointed Chairman and CEO by the Board of Directors.

bioMérieux is listed on the Euronext Paris stock market. (Symbol: BIM - ISIN: FR0010096479).

Website: www.biomerieux.com

PIONEERING DIAGNOSTICS

TO ADDRESS PUBLIC HEALTH CHALLENGES

ANTIMICROBIAL RESISTANCE

SEPSIS

EMERGING PATHOGENS

PROTECTING CONSUMER HEALTH

HUMAN

• 12,000 employees
• 44 countries
• Diversity and multiculturalism

FINANCIAL

• Stable family shareholder structure
• Mutual trust with financial partners (investors and banks)
• Solid cash flow generation

IN INNOVATION

• 14% of sales

• 1,800 employeesOUR RESOURCES

• 18 sites

INDUSTRIAL

• 18 bio-industrial sites
• < 4,000 employees
• < 12,000 suppliers
• Policy of sustained investments

ENVIRONMENTAL

• Careful, responsible consumption of natural resources and primary raw materials
• 658,000 m3 water
• 225 GWh energy,
  including 14% renewable energy
• 68 kt CO2e

CORPORATE CULTURE

• Humanist corporate commitment

• Quality social dialogue

• Global Code of Conduct

CLINICIANS	PHARMA INDUSTRY
	BIOTECH • COSMETICS

BIOLOGISTS • HOSPITALS

LABORATORIES

HEALTH OF PATIENTS	AGRI-FOOD
AND CONSUMERS	INDUSTRY

OUR VALUE CREATION

SUPPORT THE SUCCESS AND COMMITMENT OF OUR WORKFORCE

ACHIEVE RESULTS THAT GUARANTEE OUR INDEPENDENCE

STRENGTHEN THE MEDICAL AND ECONOMIC VALUE OF DIAGNOSTICS

SUSTAIN AND DEVELOP OUR INDUSTRIAL ACTIVITY

REDUCE OUR ENVIRONMENTAL FOOTPRINT

COMMITTED TO PEOPLE AND LOCAL COMMUNITIES

• 21 hours of training per employee
• Access to training rate: 89%
• 7.3% internal mobility
• Employee share ownership plan
• Increase in sales: +8% CAGR 2016-2019
• Net income: +15% CAGR 2016-2019
• Free cash flow: €150 million in 2019
• Dividends: +14% (2016-2019)
• Open innovation (joint research laboratories, public/private partnerships)
• Product quality and product safety
• Medical-economicstudies: the positive impact of diagnostics on health systems
• Local purchasing policies
• 9 sites certified OHSAS 18001 / ISO 45001
• Extensive industrial know-how
• Responsible purchasing commitment to our suppliers
• 9 sites certified ISO 14001
• 2020 targets exceeded with 20% reduction in energy & water consumption and greenhouse gas emissions
• Product eco-design approach
• 70 agreements in 5 years with labour unions in France
• Code of Conduct training for all employees
• Responsible tax policy consistent with local business activity
• bioMérieux employee involvement in local communities
• 3.5%o of sales allocated to philanthropy, including the Mérieux Foundation and Fondation Christophe et Rodolphe Mérieux

• Ties to local stakeholders

4 GENERATIONS DEDICATED TO PUBLIC HEALTH

A FAMILY COMPANY WITH A LONG TERM VISION

	1897 - Marcel Mérieux founds				1963 - Alain Mérieux
	the Institut Mérieux				founds bioMérieux
1894 - Marcel Mérieux studies with Louis Pasteur	1937 - Dr Charles Mérieux
	take up the reins

2015 - Alexandre Mérieux

becomes CEO and then

Chairman and CEO

in 2017

2

BIOMÉRIEUX • 2019 ANNUAL REPORT

3

"EDITO

Alexandre Mérieux

Chairman and CEO

Our strategic choices for diagnostic solutions that address major healthcare challenges and our balanced international presence have a clear impact, reflected in the strong sales momentum that we have recorded for several years now. In 2019, bioMérieux generated sales of €2,675 million, representing growth of 7.2%, with contributive operating income before non-recurring items reaching €389 million in line with the targets set by the Company.

These results confirm our place among the major in vitro diagnostics players worldwide and strengthen our positioning in this market.

Patient health and consumer safety are at the heart of our concerns.

By developing increasingly rapid and accurate diagnostic tests, we contribute to improving patient management while containing healthcare costs. We also apply our expertise at the service of the agri-food, pharmaceutical and cosmetics industries to control the microbiological quality of their products.

In 2019, we strengthened our leadership position in the field of microbiology with our complete VITEK® range for automated microbial identification and antibiotic susceptibility testing and our BACT/ALERT® blood culture systems. In the field of molecular biology, the innovative syndromic approach to diagnostics provided by our BIOFIRE® FILMARRAY® range continued its robust growth. It is being adopted by an increasing number of laboratories on

4

all continents, confirming the importance of this approach. In the field of immunoassays, we are a specialist player and invest in the development of high medical value tests that enrich our pipeline of innovations, in particular for the VIDAS® line and in the expansion of this activity with our increased shareholding in Hybiome. This Chinese company develops products that complement those of bioMérieux, thus consolidating our presence in China.

Finally, in the field of industrial microbiology, the growth of our business has been boosted by the acquisition of Invisible Sentinel in 2019, an American start-up specialized in tests for the quality control of beverages.

Since its foundation more than 55 years ago, bioMérieux has developed extensive expertise in infectious disease diagnostics to address major health challenges such as antimicrobial resistance, sepsis and respiratory infections.

We are very proud that this expertise has been recognized. For example, in 2019, we were selected to be a key supplier in a tender process organized by the Fleming Fund, a UK aid investment program to tackle antimicrobial resistance in resource-limited countries.

At bioMérieux, we take a socially responsible approach to our business activities. In step with our company's development, we organize initiatives to promote awareness, education and prevention among healthcare professionals in order to support better patient care. We also uphold our commitments as a socially-responsible company by sponsoring initiatives in solidarity with communities in the countries where we operate, and by supporting the Mérieux Foundation and the Fondation Christophe et Rodolphe Mérieux, two independent family foundations that fight infectious diseases in developing countries.

These actions embody our humanist culture and the sense of commitment that drives all bioMérieux employees. This mindset is enriched by the importance we place on creating a working environment that fosters professional development. We weigh the impact of this approach on a daily basis, particularly in emergency situations such as the COVID-19 outbreak in late 2019.

bioMérieux was mobilized as early as January 2020 to develop a complementary diagnostic strategy to help healthcare professionals fight this epidemic. Thanks to the remarkable commitment of our teams, two molecular biology tests, in the ARGENE® and BIOFIRE® ranges, were made available to laboratories in March and SARS-CoV-2 was included in the BIOFIRE® syndromic Respiratory panel in May. We have validated the performance of

2 serology tests, VIDAS®anti-SARS-CoV-2, for the detection of antibodies in people who have been exposed to the virus.

Building on our many strengths and despite the global uncertainty created by the COVID-19 pandemic, we intend to pursue bioMérieux's growth and, now more than ever, to serve our public health mission - both in the short term to meet the needs of healthcare professionals as they manage this pandemic, and in the long term by continuing to expand our diagnostic testing portfolio to better satisfy the needs of our customers worldwide.

BIOMÉRIEUX • 2019 ANNUAL REPORT

5