Biomerieux S A Unsp/Adr

Welcome to the BioMariu 2025 Third Quarter Sales Conference Call. The call will be structured in two parts. First, a presentation by BioMariu Group Management Team. Afterwards, there will be a Q&A session. During this session, you may ask question in two ways, by submitting a written question in the box below the player, or by joining the conference call and dial pound key 5 on your telephone keypad to enter the queue. I will now hand over to Emerick Fichet, VP Investor Relations. Please go ahead.

Thanks. Hello, everyone. Good afternoon. Good morning. And thank you for joining this call. I'm with Pierre Boulu, CEO, together with Guillaume Vour, CFO. Please note that this conference call will include forward-looking statements that may change or be modified due to uncertainties and risks related to the company's environment. Accordingly, we cannot give any assurance as to whether we will achieve this objective. I also remind you that today's call is recorded and that the replay will be available on our website www.biomérieux-finance.com. I will now end the call over to Claire and then we will open the call to questions. Claire?

Good, hello everyone, good morning, good afternoon. So I start with giving you the highlights for the year 2025. So I start with the sales numbers. We've reached a very important milestone, 4 billion euro company now, BioMérieux, growing 6.2% organically, significantly outpacing a market that we're seeing growing around 1% when we look at the diagnostics results from most competitors. This growth would have been 7.8% excluding China. What is very positive within the performance for 2025 is we've made a very profitable growth, reaching 17.9% of our sales, contributing EBIT, and growing 16% organically. And finally, on the numbers side, very strong cash flow generation. reaching 460 million euros, growing 40% versus 2024. So now if we go into the commercial dynamics and the four growth drivers that we selected in the context of Go28, so if you put them together, they've actually been growing 9.4%. So let me start with non-respiratory biofire. What I'd like to highlight here is an increase of the net unit installations. As you know, this is an indicator that we follow very closely. We've managed to install an additional 1,800 units of BioFire in 2025, to be compared with 1,350 in 2024. So we have successfully grown our musical base by 7% in 2025 only, which is very consistent with the growth perspective that we project for the years to come. And we've done that, we'll come back to that, with very limited price erosion. The second growth driver, as you know, is Spotfire, a point of care system. So what I'd like to highlight here is a very significant improvement of the installation rate, 110%. We've installed 3400 instruments in 2025, with the successful launch of the nasal swab in the US in the summer. The third growth driver is microbiology, where we have a very strong leadership position. As you know, we've been impacted by the decline in China. Excluding China, we've managed to grow 6.3%. We are very satisfied actually with the instrument's growth in the region of 14% in 2025, growing 14% in 2025 versus 2024, so demonstrating a very strong momentum for microbiology solutions moving forward, and an additional 2% price increase in microbiology, which is also a very positive factor. Finally, industrial applications. What I'd like to highlight is a very strong performance on the pharma segment, where our launches are demonstrating a very strong impact in the market, and our pharma sales growing mid-teens, again, very strong level of reaction for the future, together with 2% point of price increase. Now the two additional areas of sales that are not growth drivers, but we still obviously monitor very carefully. Respiratory panels, we've actually managed to grow 1%, building on very strong performance already in 2024. the epidemiology was broadly in line distributed differently between quarters but broadly in line for the full year between 2025 and 2024 what is uh making us very positive on this one is again very limited price erosion below two percent and of course the install base increase that i was mentioning will also benefit the respiratory panels for the future In immunoassays, we've been struggling with immunoassays franchise, as you know, in the last couple of years. Minus 6% in 2025. A positive factor that I wanted to highlight here is the Vidas Cube, a new system for Vidas that we have launched now a couple of years ago. It's growing very nicely. There are replacements, obviously, there, but mid-teen sales growth in instruments in 2025. demonstrating that we are actively managing the replacement of the whole virus in the market. So, those are the comments on the top line. If we look at the bottom line, 16% as I was commenting, improvement of Cellbit. Together with the 6% of sales, so definitely a significant operating leverage, we are deploying a good 28 initiatives. We are progressing on the automation with regards to manufacturing costs, reaching 40% of the pouches fully manufactured now on the automated lines, which is good news, bad news, but the good news is we keep improving and we still have an opportunity to grow this in the next years and further improve our costs with regards to biofire and spot fire pouches. We are also progressing in M&D, following the decision to close the Sandro Desai, we are moving forward with having one unified team for microbiology and we are progressing also with the transformation of a global customer service that we translate into a better service to our clients and efficiency improvement. Overall, we've increased our account around 2% in 2025, so to be compared with the 6% sales growth that we are posting. Finally, on 2025, I wanted to give you an update on a very significant progress on a CSR agenda. We are actually for nearly all KPIs, either at or above target. I'd like to highlight especially the CO2 greenhouse gas emissions that has been reducing close to 30% since 2019, while our sales have been growing 50% since 2019, so a very significant improvement, and we're talking absolute emissions, which by the way, I'll come back to that, will lead us to preview and upgrade our CSR ambition for the years to come. So before handing over to Guillaume, we'll give more granularity on the information on the financial performance. It's been two years now that we've communicated a Go28 plan, so it's a good opportunity to step back after two years. So if we look at the different dimensions of the Go28 ambition, after two years we've been growing sales 8% on average in the last two years. So significantly, very much in line with the plan. We've grown the head base by 20% in 2024, 16% in 2025. So overall, an improvement of 260 basis points versus 2023, very much in line. In terms of team engagement, we wanted to be the top quartile of the industry at the end of 2025. A new engagement survey shows we're in the top 5% of the industry, and as I said, I want to come back to that, 29% reduction of greenhouse gas emissions versus 2019, very much in line with the ambition to reduce by 50% by 2030. So with this, I hand over to Guillaume. We share with you more insights on 2025. Thank you, Pierre. Hello, everyone.