Jefferies 2019 Healthcare Conference Laboratories.pdfglobal organizationalstructureand executive...

Bio-Rad Laboratories, Inc.Jefferies 2019 Healthcare Conference

2

Forward-Looking Statements

Some statements in this presentation may be forward-looking statements within the meaning ofthe Private Securities Litigation Reform Act of 1995, including, without limitation, statements regardingour investment in high growth emerging markets and development of new products, applications andtechnologies, our new focus on lab to clinic solutions, improvements to our operational efficiency, growthof markets and demand for products, and our future financial performance. Forward-looking statementsgenerally 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 ofthose terms or expressions, although not all forward-looking statements contain these words. Thesestatements are subject to risks, uncertainties and other factors that could cause actual results to differmaterially from our expectations. Such factors include, but are not limited to, recent changes to ourglobal organizational structure and executive management team, difficulties in implementing our globalERP system, our ability to develop and market new or improved products according to our businessplan, currency fluctuations and other factors discussed in more detail in our recent filings with theSecurities and Exchange Commission. The forward-looking statements contained in this presentationreflect our views and assumptions only as of the date of this presentation. We do not undertake anyobligation to publicly update any forward-looking statements.

Advance discovery. Improve lives.

3

Bio-Rad Today

Continuous Innovation

A History of Contribution

8,300+Employees Worldwide

65+Years StrongPerformance

$2.2B+Annual Sales

Key CompetenciesFueling Ongoing Growth

Complementary Business Mix

Leveraging Across the Company


4

Bio-Rad Global Profile

BioPharma

11%

Reference Labs

13%Transfusion Labs

12%

Academic

23%

Applied

3%

Hospital Labs

38%

Americas

44%

EMEA

35%

Asia

21%

Diversified Customer Base Worldwide Presence Broad Product Base

Customers Geography Products


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A History of Innovation

1972Electrophoresis grade chemicals are introduced

2000 Launched the first 4-color real time PCR platform on the market

2017Bio-Rad launches the first digital PCR CE-IVD test to monitor levels of BCR-ABL in cancer

2012Bio-Rad launches the droplet digital PCR system

1967: Bio-Rad launches first T-4 by column test revolutionizing Thyroid testing

1982: First commercial test for Hemoglobin A1c

2006: Place first multiplex immunoassay system BioPlex 2200


6

Leadership Positions

DNA amplification

Gel image

Protein Assay Quality Control

Blood Typing

Bio-Chromatography

Infectious Disease

Diabetes

Autoimmune

Digital Biology

Electrophoresis


Market Focus

7

Bio-Rad is Well-Positioned in New Focus on Lab to Clinic Solutions

Translational Research Continuum

Discovery Development Production Treatment & follow up

• Basic disease mechanism research

• Pathway research• Target

identification

• Target validation• Lead development

of a therapy and/or diagnostics

• Pre-clinical studies

• Clinical studies• Regulatory• Drug and/or

diagnostics mfg. & commercialization

• Treatment planning and monitoring

• Post-market surveillance

- Bio-Rad Confidential - Advance discovery. Improve lives.

Genomics, Cell Biology, Proteomic, Software & Informatics

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Life Science Profile

Asia

26%Americas

43%

EMEA

31%

Consumables

48%

Instruments/Apparatus

52%

Applied Markets

7%Research

63%

BioPharma

30%

HighlightsMarket Size: $45B–50BMarket Growth 4% CAGR Addressable Market: $8–9B

Source: Bio-Rad Internal

CustomerSegments

RevenueGeography

Products


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Life Science SolutionsGenotyping & Gene

Expression (PCR & qPCR)

Protein Purification(chromatography)

Gene Transfer & Modulation

Protein Expression (multi-analyte detection)

Cellular Imaging

Protein Quantification(western blotting)

AntibodiesCell Sorting & Analysis

Multi-omicsSolutions

Digital Biology(Droplet Digital PCR, ddSeq)


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Cell Biology

New Entrant in Growing Market Flow Cytometry Cell Sorters

and Analyzers Cell Imagers and Counters Flow Cytometry Reagents & Assays Flow Cytometry Antibodies

ZOE Fluorescent Cell Imager ZE5 Cell Analyzer

TC20 Automated Cell Counter

S3e Cell Sorter

Flow Cytometry Antibodies


11

Digital Biology

Leadership Position

• ddPCR technology

• Broad IP portfolio

• Broad application from research to therapeutics

• Rapid development of new applications


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Clinical Diagnostics Profile

HighlightsMarket Size: $55-60B Addressable Market: $5.5B Market Growth ~ 5%

TransfusionLaboratory

18%

CustomerSegments Hospital

Laboratory

61%

Source: Bio-Rad Internal

EMEA

39%

Americas

42%

Asia

19%

RevenueGeography

Instruments

25%

Reagents

75%

Products

ReferenceLaboratory

21%


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Clinical Diagnostics

Blood Typing Blood Virus Screening HIV Confirmation Testing

Protecting the Blood Supply

Diagnostic Testing and Monitoring

Diabetes Infectious Disease Autoimmune Transfusion Compatibility

Quality Controls Quality Assessments Data Management

Quality Assurance


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Highlights Bio-Rad #2 in Market 3,000+ Automated Systems Placed Unrivalled Results Management Broadest portfolio for safe transfusions

Geographic Expansion IH-1000 and IH-500 FDA Approvals IH-Com and Manual Systems Approval Growing Demand in Emerging Markets

Blood Typing

IH-500

Tango infinity

IH-1000

Gel Cards

IH-Com & IH-WebResults Management


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Portfolio Expansion

Near Term Focus• Core Market Enhancement• Microbiome• Point of Care• Non-Invasive Prenatal Testing


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The Importance Of Clinical Diagnostics In Healthcare

Earlier detection saves lives• Lowers total costs• Reduces risks• Increases satisfaction• Improves treatment efficiency

Targeted Disease Prevention

Early Disease Detection

Accelerated Diagnostics

Targeted Therapy

Improved Outcomes


17

Diabetes

Diabetes is an accelerating global problem.


18

Bio-Rad Pioneered HbA1c Testing

Bio-Rad provides HbA1c testing solutions for all segments, leading to better outcomes for patients with diabetes.

Small Labs / Clinics

Medium Labs Large Labs

D-10 VARIANT II D-100


19

Cancer

The global cancer burden continues to rise, with 18 million new cases and over 9 million deaths in 2018.

Early Detection Is Key To Survival

* Cancer Research UK Advance discovery. Improve lives.

20

Bio-Rad Is Pioneering Digital PCR In Liquid Biopsy

Systems Consumables Menu

For customers developing and validating tests

Droplet digital PCRplatforms

Large portfolio of assays

Bio-Rad products enable monitoring of a patient’s response to targeted therapy.


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Discovery

Development Therapies

Translational Discovery to Diagnostics


Target validation

Lead development of a therapy and/or diagnostics

Pre-clinical studies

Basic disease mechanism research

Pathway research

Target identification

Treatment planning and monitoring

Post-market surveillance

Clinical studies

Regulatory

Drug and/or diagnostics manufacturing and commercialization

Production

Translational Medicine

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Operational Transformation


Building a Scalable Model

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The Opportunity

Increase visibility Optimize inventory levels Improve service Reduce scrap Lower project overhead

Leverage ERP Investment

Rationalize Global Footprint Consolidate distribution

centers Close redundant

commercial sites Increase Asia

manufacturing

Manage Procurement Centralized Procurement Global price concessions Targeted reduction in

direct and indirect purchases


24 Advance discovery. Improve lives.

Creating Shareholder

Value

Accelerating Free Cash

Flow

Driving Revenue Growth

Expanding EBITDA Margins

The Path Forward

Increased Cash Flow Disciplined Capital

Allocation

Geographic Expansion New Products New Markets

Higher Profitability Reduced CAPEX Tax Savings

Optimized Supply Chain Reduced ERP Spend Shared Services Operating Leverage

Key Contributions to Value Creation

25

Summary – Closing Remarks

Investments at an inflection point

Building on our market and product leadership

Increased focus on acquisition opportunities

Leveraging our new organization, operating model and systems to drive value


Bio-Rad Laboratories, Inc.Jefferies 2019 Healthcare Conference

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