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21/03/2014 11

Annualresults2013






21/03/2014 22

Marie-Claire Taine

Vice PresidentSales & Marketing

Yves L’Epine

Chief Executive Officer

Jean-François Le Martret

Chief Financial Officer

Welcome






21/03/2014 33

€390min sales for 2013

No. 4worldwide

for the

XR + MRI scope

The global specialist in contrast agents for medicalimaging

• Company created in 1926

• 1,485 employees including 400 outside France

• More than 200 employees devoted to R&D

• Capital expenditure of €35m in 2013

• Direct presence in 13 European countries and 7 in otherregions (US, Brazil, Mexico, Hong Kong, South Korea, Taiwan,Japan)

Nearly

18mdoses manufactured






21/03/2014 44

X-rays MRI Interventionalradiology

4 growth drivers

Medical devices

Adopted bymore than

60,000doctors

Delivered inmore than

10,000establishments

XENETIX…

…

DOTAREM

…

LIPIODOL

…

FlowSensSBI

LinkfillManyfillSecufill

DotaJect…

The global specialist in contrast agents for medicalimaging






21/03/2014 55

Objectives Achievements

MRIX-rays (XR)

Adapt our business model Market share gains in Europe +Asia

Dotarem launch in the US

Improvement in Xenetix'sprofitability

Interventionalradiology andtheranostics (IRT)

Medical devices (MD)

Accelerate our diversification Lipiodol :- Orphan Drug status in the US- New indications in Japan- Finalisation of the registration file for thechemoembolization indication in Europe

Preparation for the FlowSenslaunch

Results Improve competitiveness and

profitabilityImproving the gross margin ratio

Effective control over operatingcosts

Net income preserved

Organisation Build a Best-in-Class

organisation

R&D programmes balancedbetween NCE, LCM and medicaldevices

ERP project launch

2013, a successful transitional year (1/2)






21/03/2014 66

Revenue overall in line with expectations

• 2013 revenue of €390m ; (1.3)% at constant exchange rates

• MRI segment stable, X-Rays down following an exceptional uptrend in 2012

• Growth platforms (USA/Asia & IRT/MD) up significantly at +27.6%

Profitability slightly above target

• EBITDA of €52.1m, with a stronger contribution to margin in H2

• A current operating margin of 7.7%, slightly surpassing the 6.5%-7.5% target range

• Net income preserved despite lower revenue

Organizational measures completed for the Group's future development

• Reducing debt and strengthening the balance sheet

• New industrial capacity for competitiveness and future growth

• Successful entry into new high value added markets

2013, a successful transitional year (2/2)






21/03/2014 77

Contents

1. Revenue and operating highlights

2. 2013 annual results

3. Strategy and outlook






21/03/2014 88

1.Revenueand operating highlights

2013 annual results






21/03/2014 99

A market for contrast agents &radiopharmaceuticals relatively stable in 2013

Source: Guerbet

€6.5bn in

2013

Market for contrastagents &

radiopharmaceuticalsBy geographic regionBy imaging

technology

~50%

~13%

~32%

~5%

~46%

~27%

~22%

~5%

Americas

Europe

Asia

Rest ofthe world

X-rays

MRI

Nuclearmedicine

Ultrasound

51%

39%






21/03/2014 1010

47.7%

41.9%

5.5%

4.0%

0.9%

X-Rays MRI IRT MD Other

Favourable shift in the product mix

51.6%40.2%

3.8%

3.8%

0.6%

X-rays MRI IRT MD Other

Sales by product range (in value) as %

2012 2013






21/03/2014 1111

Focus on adverse currency effect on sales

Sales trends by region

Cumulative currency effect of €8.4mmore concentrated in H2

€(3.8)m

€(3.2)m

€(1.4)m

Main foreign exchange impacts

Americas

(10)%

Asia

+16%

Europe

(5)%

Other

(11.5)%






21/03/2014 1212

Good performance for MRI sales

• MRI MARKET +3.5% (in volume, Guerbet estimate)

… though strong pressure on prices

– Increase in number of calls for tender

(Belgium, Austria, etc …)

– Sales stable in value terms in South Korea (rise in

volumes) despite arrival of a generic

• GUERBET, in response to the "generic"challenge : top-range positioning

– Defending intellectual property rights

– Validation of quality of competing products launched

(risk of Gadolinium release)

– Country/country preparation of Guerbet's response

162.2 163.4

2012 2013

Change in MRI sales in €m

+0.7%






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208.0

185.8

2012 2013

• X-Rays MARKET : sluggish European region

– Price effect : competitive pressure

– Volume effect : natural growth

(linked to installed base of injectors) partially

offset by the decline in volumes injected due to

new equipments

• GUERBET : decline in 2013 morepronounced reflecting exceptional orders at2012 year-end

X-rays : drop in sales

Change in X-rays sales in €m

(including barium)

(10.7)%






21/03/2014 1414

Take off of growth drivers confirmed

• IRT : a fast-growing segment

– Lipiodol enabling GUERBET to be a major player in

interventional radiology for oncology

• MEDICAL DEVICES

– A segment that will contribute directly and indirectly

(by facilitating differentiation of Group products) to

sales growth

15.421.5

2012 2013

Change in IRT sales in €m

+ 39 %






21/03/2014 1515

Growth-generating organisational measures

completed in 2013 (1/2)

The year of the launch in the US

The US as the world's number onemedical imaging market

150,000 litres, 10m exam injections / yr.

5,181 hospitals and7,074 imaging centres

95% of hospitals are members of aGroup Purchasing Organisation (GPO)

Health spending / GDP ratioas highest in the world

Private coverage = 58% of total expenditures

Rapid deployment by GUERBETin the American market

Filing ofMarketing

Authorisationapplication

Advisory

Committee

Sept.2012

Feb.2013

Mar.2013

Certificationof production

sites

Dotaremlisted by the

NovationGPO

Nov.2013

1st salesCincinnati

Children’s

Hospital

MarketingAuthorisation

granted

Jul.2013






21/03/2014 1616

• Industrial investments

Preparing for the commissioning of the new

filling line for sterile pharmaceutical products based in Aulnay

Growth-generating organisational measures

completed in 2013 (2/2)

2013, key steps for responding to improving demand for x-rays productsand for improving competitiveness for the future

• Optimisation of industrial processesfor X-rays lines

– Complete recycling of iodine : doubling quantity recycled between

2012 and 2013

– Use of less costly and more environmentally friendly solvents

– New processes for reducing manufacturing costs in pilot phases






21/03/2014 1717

2.2013 annual results

2013 annual results






21/03/2014 1818

An ongoing positive shift in the product mix

IFRS (€m) 2012 % of sales 2013 % of sales

MRI 162.2 40.2% 163.4 41.9%

X-rays 208.0 51.6% 185.8 47.7%

IRT 15.4 3.8% 21.5 5.5%

Medical devices 15.4 3.8% 15.7 4.0%

Other 2.5 0.6% 3.3 0.9%

TOTAL 403.5 100.0% 389.7 100.0%






21/03/2014 1919

EBITDA steady > at 13% of sales


Revenue 403.5 100.0 389.7 100.0

Royalties & other revenue 2.5 0.6 2.4 0.6

Supplies used in operations (114.1) (28.3) (97.5) (25.0)

Staff costs (105.3) (26.1) (110.1) (28.3)

External charges (119.3) (29.6) (120.1) (30.8)

Taxes other than on income (13.7) (3.4) (14.4) (3.7)

Other current operating income andexpenses

1.3 0.3 2.1 0.5

EBITDA 54.9 13.6 52.1 13.4






21/03/2014 2020

Operating results surpassing expectations


EBITDA 54.9 13.6 52.1 13.4

Allowances for depreciation (21.8) (5.4) (22.3) (5.7)

Provisions (1.4) (0.3) 0.2 0.1

Current operating income 31.7 7.9 30.0 7.7

Operating margin slightly above target






21/03/2014 2121

31.730.0

+4.9

+3.1 (4.9)

(2.1)(2.7)

Currentoperating

income N-1

Gross margin Overheadexpenses

Selling costs Royalties andother income

R&Dexpenditures

Currentoperatingincome N

Current Operating Income variance analysis

(€m)






21/03/2014 2222

Steady Net Income


Current operating income 31.7 7.9 30.0 7.7

Other op. income & expenses (0.1) (0.0) (0.1) 0.0

Net interest expense (3.9) (1.0) (1.1) (0.3)

Net currency gains/(losses) (0.1) (0.0) (1.1) (0.3)

Income tax (7.3) (1.8) (7.2) (1.9)

Net income 20.4 5.1 20.5 5.3

Income tax rate 26.4% 26.1%






21/03/2014 2323

Balanced contributions for H1 and H2

IFRS (€m) 2012 2013 H1 2013 H2 2013

Revenue 403.5 389.7 192.4 197.3

EBITDA

% of sales

54.9

13.6%

52.1

13.4%

24.2

12.6%

27.9

14.1%

Current operating income

% of sales

31.7

7.9%

30.0

7.7%

15.2

7.9%

14.8

7.5%

Net income

% of sales

20.4

5.1%

20.5

5.3%

10.0

5.2%

10.5

5.3%






21/03/2014 2424

A solid balance sheet

ASSETS 31/12/2012 31/12/2013

Non-current assets

of which fixed assets

238.3

225.8

244.7

233.6

Inventories 105.2 97.3

Trade receivables 86.8 75.4

Other current assets

of which CCE

30.7

10.5

42.2

18.4

Total assets 461.0 459.6

EQUITY &LIABILITIES

31/12/2012 31/12/2013

Shareholders' equity 226.2 238.3

Non-current liabilities

of which financial debt

100.6

67.0

94.4

62.2

Trade payables 38.9 35.1

Other current liabilities

of which financial debt

95.3

42.4

91.8

38.7

Total assets 461.0 459.6

A reinforced financial structure






21/03/2014 2525

A sharp increase in Free Cash Flow

IFRS (€m) 2012 2013

Cash flow 45.3 42.0

Changes in WCR

o.w. change in inventories

o.w. change in trade receivables

o.w. change in trade payables

o.w. change in other assets and liabilities

(11.0)

(0.7)

(1.5)

(10.1)

1.3

14.97.8

11.9

(3.9)

(0.9)

Net capital expenditure (32.4) (35.4)

Dividends (5.5) (6.1)

Other 4.6 1.1

Free cash flow 1.0 16.5

Net debt 99.0 82.5






21/03/2014 2626

Reducing debtand strengthening the financial structure

Improvement in ratios at 2013 year-end inresponse to a significant rise in free cash flow

1.801.58

30/12/2012 31/12/2013

Leverage(Net financial debt / EBITDA)

99.0

82,5

31/12/2012 31/12/2013

Net financial debt (€m)

0.440.35

30/12/2012 31/12/2013

Gearing(Net financial debt / equity)






21/03/2014 2727

Annual financial highlights

IFRS (€m) 2012 2013Change

2013 / 2012

Revenue 403.5 389.7 (3.4)%

EBITDA

% of sales

54.9

13.6%

52.1

13.4%

(5.1)%

Current operating income

% of sales

31.7

7.9%

30.0

7.7%

(5.5)%

Net income

% of sales

20.4

5.1%

20.5

5.3%

+ 0.4%

Net debt

Capital expenditure

99.0

33.2

82.5

35.4

(16.7)%

6.5%






21/03/2014 2828

Guerbet share performance

• At 7 March 2014• Share price €30.88• Market Cap €376.7m• High since 1 Jan 2012 €35.25• Low since 1 Jan 2012 €15.1• Return since of 1 Jan 2012 +92.7%

• Indexes• CAC Mid &Small• CAC All-Share• CAC Pharma & Bio

• Securities trading info• ISIN code FR0000032526• Symbol GBT• Reuters code GRBT.PA• Bloomberg code GBT:FP• Number of shares 12,200,184• Market segment Euronext B






21/03/2014 2929

Proposal to the shareholders

Dividend proposal to the AGM

of 23 May 2014 :

€0.50 per share

Or a dividend yield of 1.84%






21/03/2014 3030

Dividend payments : 2009 - 2013

0,00%

0,50%

1,00%

1,50%

2,00%

2,50%

3,00%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2009 2010 2011 2012 2013

Div

ide

nd

yie

ld(%

)

Div

ide

nd

pay

ou

tra

tio

(%)

2009 2010 2011 2012 2013

Taux de distribution 33% 93% 38% 30% 30%

Taux de rendement 2,32% 2,74% 2,85% 2,08% 1,84%

Taux de distribution Taux de rendement






21/03/2014 3131

3.Strategy and outlook

2013 annual results






21/03/2014 3232

• MRI : Conquest and leadershipstrategy (differentiated product)

• X-rays : Strategy of

challenger in a mature market,enhance Scanbag value,

combined with FlowSens

• Optimising the potential of IRT

• Lipiodol in oncology

• Patent Blue in colorimetryimagery

• Launch of FlowSens

• Return to a normalised level

for capital expenditure

• Optimisation of performancefor manufacturing and logistics(quality/delays/costs)

• Deployment of the SAPproject

• Strengthening first-linemanagement

Adapt our

business model

X-RAY, MRI

Continuing

development

and

diversification

into IRT MD

Build a Best in

Class

organisation

Reduce

production /

operating

costs

Maintaining our strategic priorities for 2014

1 2

43

A cross-functional strategy across our 4 growth driversMRI – X-Rays – IRT and Injectors / Medical Devices






21/03/2014 3333

33

MRI, our objective : widening our lead

Evolving priorities of our4 growth drivers

• Acceleration in the US, pursuing market share gains• Demonstrating the product's unique characteristics• Launch of phase 1 of our new "best in class" product : P3277

• Acceleration in the US, pursuing market share gains• Demonstrating the product's unique characteristics• Launch of phase 1 of our new "best in class" product : P3277

20142014

• Rapid growth inresponse toNSF

YesterdayYesterday Strategy of leader :

• Geographicalexpansion

• Market share gains

TodayToday

Strategy of leader

• Establishing Dotaremas the global standard.US market share of15%-20% in 5 yearspost-launch.

• Preparing for thechallenge of "generics"

• Accelerating P3277

TomorrowTomorrow






21/03/2014 3434

34

• High volumes and

low sales prices

YesterdayYesterday• Customer

selection

• Strategy of aprofitablechallenger

TodayToday

A differentiated offering

• Shift from vials toScanBag through theFlowSens offering

• Reduction in cost pricesto acquire newcustomers

TomorrowTomorrow

X-Rays : shift towards a differentiated offering andimproved profitability

• Enhancing the value of Xenetix in ScanBag via FlowSens®

• Continuing to lower cost of goods manufactured• Enhancing the value of Xenetix in ScanBag via FlowSens®

• Continuing to lower cost of goods manufactured20142014







21/03/2014 3535

Launch of FlowSens®

• Injection configurations for CT scans

• FlowSens : a future success based on key advantages

• FlowSens : meeting the needs of practitioners

35

Optimisationof Efficiency

Time&

Costs






21/03/2014 3636

Peristaltic pump

based injectorsSoft bag injectorsSyringe injectors

FlowSens®, a comprehensive solution

CT injectors : Injectors + Contrast Agents + Disposables + ServicesCT injectors : Injectors + Contrast Agents + Disposables + Services

• Vials

• with syringes to be filled

• ScanBag by Xenetixwith syringes to be filled

• Pre-filled syringes

• Vials

• ScanBag by Xenetix

• Vials with bags to befilled

• ScanBag by Xenetix






21/03/2014 3737

FlowSens® : a future success based on keyadvantages

37

• Premium Injection Solution– Injectors + Contrast Agent + Disposables + Services

• Universal application

– Mono/multi-use, mono/bi-liquid injections

• Customer/user-centric design– Designed/assessed with radiology technicians and radiologists

• Focus on the patient– Attractive design

• French conception






21/03/2014 3838

FlowSens® : meeting the needs of practitioners

Optimisation ofEfficiency

time & cost

WORKFLOW

SAFETY

PRECISIONSUSTAINABLEDEVELOPMENT

SCALABILITY(connectivity)

38






21/03/2014 3939

FlowSens®

39






21/03/2014 4040

40

Acquisition of Medex

and partnerships

• Mallinckrodt in Europe

• Medtron in Brazil

YesterdayYesterday Expanding ourradiology offering

• Line of disposables:Linkfill, Manyfill, Secufill,Dotaject

TodayTodayAccelerate ourdiversification

• Global premium solution forCT imaging (injector,FlowSens, disposables,services)

• Interventional radiologyoncology kits

TomorrowTomorrow


Medical devices : an opportunity for diversification to beseized !

• Successfully launch FlowSens (H2 2014) in the 1st wave of countries

• Generating additional value from Xenetix ScanBag's value through the FlowSens

offering

• Successfully launch FlowSens (H2 2014) in the 1st wave of countries

• Generating additional value from Xenetix ScanBag's value through the FlowSens

offering20142014






21/03/2014 4141

41

An unexploredmarket

YesterdayYesterday 2 sources of value

• Lipiodol (clinicaltrials, newindications)

• Patent Blue

TodayToday

Leader in interventionalradiology for oncology

• Lipiodol, vector forseveral activeingredients,

• Opportunities forexternal growth andpartnerships

TomorrowTomorrow

IRT : regain the leadership in oncology


• Lipiodol US / Japan : launch of a new indication• Lipiodol Europe : registration of indication for hepatic chemoembolization imaging• Lipiodol US / Japan : launch of a new indication• Lipiodol Europe : registration of indication for hepatic chemoembolization imaging20142014






21/03/2014 4242

Guerbet R&D portfolio for March 2014

Growth drivers DiscoveryPhases I / IIa

Early Development

Phases IIb/III

Late DevelopmentRegistration Launch

MRIP3277

Best in ClassProduct

Dotarem

other indicationsUSA

Dotarem

CNS - US

IRT

P4084Local Therapy

Liver Tumour

Lipiodol Liver TumourVisualisation

US

PI891deriv.

Iron OxideHyperthermia Therapy

Lipiodolchemoembolization

Europe

MedicalDevices

FlowSens

Injectors &associated

Disposables

Nuclear medicineIMA-1

Lung CancerPET tracer






21/03/2014 4343

Conclusion

2013

Successfultransition

2014

Visibility andConfidence

• New territories opened up toGroup development

• Pursuing gains in competitiveness

• Return to a more normalized levelfor capital expenditure

• Robust growth drivers






21/03/2014 4444

Group targets for 2014

Revenue :

return to growth

Revenue targets,at constant exchange rates :

€412m (+/- 2%)

Results :

continuing marginsimprovement

Operating margin target :

current operatingmargin of 8%-9%






21/03/2014 4545

Annualresults2013

Documents

AnnualModifiez le style du titre results - Guerbet€¦ · · 2014-03-21Modifiez le style du titre • Modifiez les styles du texte du masque ... Adopted by more than 60,000 doctors