Boule ppt 12 sep 20min eng JT.pptx

Boule Diagnostics AB
Management presentation
11-11-04
Copyright © 2011 by Boule Diagnostics AB
1
Introduction
Ernst Westman, CEO Boule Diagnostics AB
•  CEO of Boule Diagnostics AB
since 1994
•  Holds a masters degree
in chemical engineering
11-11-04
Copyright © 2011 by Boule Diagnostics AB
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Introduction
Boule in brief
– A growing diagnostic company with global footprint
•  Hematology – decentralized blood analysis, Complete Blood
Count (CBC)
•  Supply of automated systems - instruments and consumables
•  Established sales channels in 104 countries
•  2010 Sales 229 MSEK (+31%); EBIT 20 MSEK (+405%)
•  96% of sales outside Sweden
•  Production in Sweden, USA and China
•  R&D in Sweden and USA
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Copyright © 2011 by Boule Diagnostics AB
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Introduction
Strong offering – positioned for growth
•  Long-term growth potential
•  Strong business model
•  Operational leverage
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Copyright © 2011 by Boule Diagnostics AB
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Introduction
Our area – blood analysis
- The world’s most common laboratory diagnostic test
•  Blood analysis (CBC) – the most common laboratory
diagnostic test for physician visit, determines concentration
of blood cells (red, white and platelets)
•  Blood analysis determine general health status and screens a
variety of diseases
•  Each year, 1.2 billion blood tests are performed worldwide
•  We focus on the decentralized segment of the market,
outside the big central laboratories, close to the patient
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Copyright © 2011 by Boule Diagnostics AB
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Introduction
Our offering
- A total quality concept for complete blood analysis
Instruments
Consumables
Service & Support
•  CBC instruments for
the Human and
Veterinary Market
•  Tuned to reagent and
controls
•  Reagents - bar code
lock for original reagent
integrity
•  Controls & Calibrators bar code entry of assay
values to avoid user
error
•  Distributors trained and
certified to provide
excellence in customer
support
A Total Quality Concept for CBC
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Copyright © 2011 by Boule Diagnostics AB
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The Market
Market size
- Our available market is big – and can be widened
•  Boules targeted market is worth approx. USD 0.4 billion
(SEK 2.5 billion)
•  Boules market share is approx. 9%
Total market for IVD Value: USD 40 billion Market for Hematology Diagnos=cs Value: USD 1,7 billion Market for Decentralised Hematology Diagnos=cs Value: USD 0,4 billion Boule
market
share
9%
Hematology
diagnostics
4%
Decentralised
diagnostics
25%
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Copyright © 2011 by Boule Diagnostics AB
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Our offering
Consumables – locked to Boule instruments
– A business model with increasing recurring revenues
•  In-house development and production of all essential
components for Hematology CBC systems
•  Unique competence in consumables development based on
individuals from former Hematology giant – Coulter
Corporation
•  Boule is one of few suppliers in the world of high quality
blood controls for Hematology
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Copyright © 2011 by Boule Diagnostics AB
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Our offering
Additional Consumable Business
- White label deliveries gives economies of scale
OEM consumables
The CDS development team offer tailor made
reagents, controls and calibrators to several
leading manufacturers
CDS brand consumables, reagents and control material
Reagents
•  Sysmex
•  Beckman Coulter
•  Abbott Cell-Dyn
•  ABX
…and others
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Controls and calibrators
•  Sysmex
•  Beckman Coulter
•  Abbot Cell-Dyn
•  ABX
…and others
Copyright © 2011 by Boule Diagnostics AB
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Our offering
Product Evolution
- Easy to use systems gives new business opportunities
Traditional hematology
system (Comp X)
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Present system
platform (Boule)
Copyright © 2011 by Boule Diagnostics AB
Future POC system
(Boule)
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Our offering
POC-system
– Our next generation, opens a new market
Total POC-market – 12 billion USD
•  Excl. diabetes monitoring 4 billion USD
Fast growing – >10% annual growth
Distribution agreement with Alere
•  Leading POC diagnostic corporation
•  Contract minimums established
Currently no available CLIA waived
POC CBC system on the market
•  CBC market potential estimated to
300 MUSD – Boule’s target 50%
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Copyright © 2011 by Boule Diagnostics AB
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Business modell
Sales development 2001-2010
1800"
18,000"
1600"
16,000"
1400"
14,000"
1200"
12,000"
1000"
10,000"
Reagent, ’000 SEK
Units sold
– Successful transformation to new system platform
Old system"
New system"
800"
8,000"
Old reagent"
New reagent"
600"
6,000"
400"
4,000"
200"
2,000"
0"
0,000"
2001"
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2002"
2003"
2004"
2005"
2006"
2007"
Copyright © 2011 by Boule Diagnostics AB
2008"
2009"
2010"
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Business modell
Global distribution and sales
– Low risk and low cost distributor strategy
Total sales, 2010
229 MSEK
North America
32 distributors
Sales 95 MSEK
Europe
56 distributors
Sales 51 MSEK
Asia/Pacific
32 distributors
Sales 40 MSEK
Africa/Middle East
45 distributors
Sales 18 MSEK
South America
22 distributors
Sales 25 MSEK
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Copyright © 2011 by Boule Diagnostics AB
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Boule in numbers
Key figures Q2
(SEK million)
2011
Full year
2010
2010
2009
229.4
175,5
Net sales
57.6
59.4
Gross margin,%
44
46
45
42
Operating profit 1.4
7.9
20.3
5.0
Operating margin, %
2.4
13.3
8.8
2.8
Net profit
0.2
9.9
18.9
4.1
Earnings per share
0.0
2,9
5.4
1.2
Goals
• 
• 
• 
Volume growth – top line CAGR >10% next 5 years
Profitable business – targeting EBITDA margin 15%
Equity ratio of 30-50 %
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Copyright © 2011 by Boule Diagnostics AB
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Conclusion
•  Long term growth potential
–  Strong position with presence in more than 100 countries –
continued focus on emerging markets
–  Increased market share on mature markets
–  Locked systems base for increased sales of consumables
–  POC can multiply sales over time
•  Strong business model
–  Recurring revenues from sales of consumables to large and
growing base of installed systems
–  Locked systems minimize competition
•  Operational leverage
–  High margins in consumables
–  Economies of scale as volume increases
–  Sales through distributors lowers cost for expansion and
minimizes risk
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Copyright © 2011 by Boule Diagnostics AB
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Copyright © 2011 by Boule Diagnostics AB
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