Bio-Rad Laboratories, Inc. Barclays Global Healthcare Conference - PowerPoint PPT Presentation

Bio-Rad Laboratories, Inc. Barclays Global Healthcare Conference 2018

Welcome Norman Schwartz Chief Executive Officer

Forward-Looking Statements Some statements in this presentation may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding estimated future financial performance or results, the growth of our business, momentum for our performance as we enter 2018, expectations regarding the benefits of investments in our structure and operations, anticipating growth and margin expansion in 2018 and beyond, the significance of steps towards achieving our longer term goal of an EBITDA margin of 20% or better, steps we may take to enhance long-term shareholder value, and our expectations regarding our products and our release of new products. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, “anticipate,” “believe,” “expect,” “assume,” “continue,” “may,” “will,” “intend,” “estimate,” or similar expressions or the negative of those terms or expressions, although not all forward-looking statements contain these words. These statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from our expectations. Such factors include, but are not limited to, recent changes to our global organizational structure and executive management team, difficulties in implementing our global ERP system, our ability to develop and market new or improved products according to our business plan, currency fluctuations and other factors discussed in more detail in our recent filings with the Securities and Exchange Commission. The forward-looking statements contained in this presentation reflect our views and assumptions only as of the date of this presentation and we caution you not to place undue reliance on such statements. We do not undertake any obligation to publicly update any forward-looking statements.

Company History 1966: Sales approach $1 million. Company 1986: 1969: goes public raising 1982: Introduce Bio-Rad introduces 1978: $140,000. First 1952: David & Alice Schwartz gel electrophoresis. first confirmation First commercial test First test for international office establish Bio-Rad to accelerate diagnostic test for Hemoglobin A1. Hemoglobin A1c. established in Munich. the scientific discovery process. for AIDS. 1960: 1967: Bio-Rad enters 1970: 1975: 1980: Sales: 1989: Sales: $150,000, diagnostic market. First T-4 Sales: $2.7 million, Acquire $46 million, 700 Implementation 11 employees. Expanding by column test revolutionizing 98 employees. controls employees. Listed of sickle cell interest in Biological Thyroid testing. ALA test business. on the American screening system discovery and improved developed to Stock Exchange. for California. healthcare. screen for lead Open offices in poisoning. Tokyo and Sydney. Continue international expansion. 4

Company History 2014: Begin reorganization with major investments in infrastructure improvements. 2011: 1998: Sales reach $2 billion. 1991: Enter DNA 2013 – 2017: 7,000 employees Introduction of the amplification 2000: 2005 : worldwide. Acquire Major deployments of first Hemoglobin market with Sales of Sell first Droplet Digital PCR ERP in US & Europe. variant system. real-time PCR $726 BioPlex 2200 technology. system. million. system. 1999: 1990: 2003: 2007: 2008: 2015: 2017: Acquire Listed on Introduce IH-500 Acquire Raindance Sales: $287 million. Pasteur-Sanofi Sales reach $1 billion. Acquire DiaMed, 2,000 employees. Diagnostics. Norman Schwartz blood typing the NYSE. blood typing system. Technologies named President products. New Board of & CEO. Directors named. 5

Bio-Rad Today Continuous 60+ Innovation Years Strong A History of Contribution Performance $2B+ Key Competencies Fueling Ongoing Growth Annual Sales Complementary 8,000+ Business Mix Employees Worldwide Leveraging Across the Company Providing Solutions to Advance Scientific Discovery and Improve Healthcare

Bio-Rad Global Profile Applied 3 % BioPharma Asia 9 % 19 % EMEA 38 % Hospital Labs 35 % Academic 23 % Customers Geography Products Transfusion Labs Reference Labs Americas 15 % 15 % 43 % Diversified Customer Base Worldwide Presence Broad Product Base

Leading Market Positions Diagnostics  Autoimmune testing Life Science  Diabetes Monitoring  Digital Bio-chromatography  HIV testing  DNA Amplification Biology  Blood Typing  Electrophoresis  Quality Controls  Gel Image Analysis  Protein Assays 80%+ of Sales from Products in which Bio-Rad has Leading Market Position

Life Science Profile Highlights  Market Size: $45B – 50B  Market Growth 4% CAGR  Addressable Market: $8 – 9B Asia 26 % Americas 43 % Applied Markets Research Revenue Consumables 7 % 63 % 48 % Geography Customer Products Segments EMEA 31 % Instruments/ BioPharma Apparatus 30 % 52 % Source: Bio-Rad Internal 9

Life Science Research BioPharma Applied Markets  Academic &  Discovery  Food Safety Industrial Research and Quality Testing  Pre-Clinical Research  Amplification &  Water Quality Testing  Clinical Research Gene Expression  Wine Quality Testing  Bio-chromatography  Manufacturing and  Life Science Education  Protein Quantification Quality Control Supplies and Curriculum  Cell Biology  Antibodies Delivering Innovation Beyond Products 10

Investing for the future  Continue to drive core technologies growth  Expand in new and growing markets with streamlined workflows and solutions  Focus on the needs of translational Life Science researchers and BioPharma  Invest in informatics solutions to turn data into knowledge  Continue development of next generation, rapid turn-around tests for food safety 11

Clinical Diagnostics Profile Highlights  Market Size: $55-60B Asia 19 %  Addressable Market: $5.5B  Market Growth ~ 5% EMEA 39 % Instruments 25 % Revenue Transfusion Geography Laboratory 18 % Customer Products Segments Americas Hospital 42 % Laboratory 61 % Reference Laboratory Reagents 21 % 75 % Source: Bio-Rad Internal 12

Clinical Diagnostics Diagnostic Testing Protecting the Quality and Monitoring Blood Supply Assurance  Diabetes  Blood Typing  Quality Controls  Infectious Disease  Blood Virus Screening  Quality Assessments  Autoimmune  HIV Confirmation Testing  Data Management  Transfusion Compatibility We Focus on Results – Test Results 13

Investing for the future  Blood Typing in North America  Microbiome MDx Panels Clinical  New Quality Control Segments Diagnostics  Track Capability  IH-500 and D-100 Systems in China  Point of Care MDx 14

Digital PCR Profile Highlights  North America and China are regional growth drivers  BioPharma fueling growth in diagnostic applications  Foundational intellectual property (IP) position Asia 29 % Liquid Biopsy/ Consumables Diagnostic 32 % BioPharma 20 % EMEA 30 % 26 % Revenue Geography Customer Products Segments Americas 45 % Research Instruments 50 % 68 % Source: Bio-Rad Internal 15

Digital Biology Product Markets Life Science Diagnostics Droplet Digital PCR applications span Hospital + Commercial Basic + Applied Research research, applied & Laboratories Laboratories diagnostic markets  Droplet Digital PCR  Droplet Digital PCR Single-Cell NGS  Single-Cell RNA-Seq sample prep primarily a research tool Spanning Bio- Rad’s Primary Markets 16

Investing for the future Simplify the Digital PCR Workflow with Next Generation Platforms Bio-Pharma and diagnostics applications Increase Capability Digital Higher multiplexing for ddPCR Expand ddPCR Assay Menu Biology Applied and IVD oncology markets Provide Droplet-Based NGS Sample Prep Solutions  To accelerate single cell genomics research  To expand information gained from whole genome sequencing 17

Transformational Changes Europe Live (April 2017) ERP ROLLOUT Divisional  Functional STRUCTURAL CHANGE Supply Chain + Commercial GLOBAL ORGANIZATIONS Accounting + Corporate SHARED SERVICE HUBS

The Path Forward  Geographic Expansion  Optimized Supply Chain  New Products  Reduced ERP Spend  New Markets  Shared Services Driving Expanding Revenue EBITDA  Operating Leverage Growth Margins Creating Accelerating  Increased Cash Flow  Higher Profitability Shareholder Free Cash  Reduced CAPEX  Disciplined Capital Value Flow Allocation  Tax Savings Key Contributions to Value Creation 19

Long Term Goals Targets: Revenue Growth 20+ % 3-5 % Profitability Creating Shareholder Value (Currency Neutral) (Adjusted EBITDA Margin) 20

2018 Outlook  Opportunity for Sales Growth  Stable Geographic markets  Research funding holding steady  Good momentum for new products  Expansion into U.S. Blood Typing market  Return on Internal Investments  New product areas such as droplet digital PCR and cell biology  Global ERP and IT reduced spend  Organization and operating model improvements 2018 Outlook Organic Sales Growth ~ 3.5% - 4.0% Gross Margin ~ 55.5% - 56.0% Operating Margin ~ 10.0% Currency neutral