Eurofins A global leader in bioanalytical testing in the food, - - PowerPoint PPT Presentation

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www.eurofins.com

Eurofins

A global leader in bioanalytical testing in the food, environment and pharmaceutical sectors

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Corporate Presentation July 2015

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Disclaimer

The statements made during this presentation or as response to questions during the Question & Answers period that are not historical facts are forward looking statements. Furthermore, estimates and judgements may be made based on market and competitive information available at a certain time. Forward looking statements and estimates represent the judgement

• f Eurofins Scientific’s management and involve risks and uncertainties including, but not limited to, risks associated with the

inherent uncertainty of research, product/ service development and commercialisation, the impact of competitive products and services, patents and other risk uncertainties, including those detailed from time to time in period reports, including prospectus and annual reports filed by Eurofins Scientific with the Luxembourg Stock Exchange and regulatory authorities, that can cause actual results to differ materially from those projected. Eurofins Scientific expressly disclaims any obligation

• r intention to release publicly any updates or revisions to any forward looking statement or estimate.

In addition, Eurofins provides in the Income Statement certain non-IFRS information (“Adjusted Results and Separately Disclosed Items”) that excludes certain items because of their nature and the impact they have on the analysis of underlying business performance and trends. (Please refer to description of these terms in the Company’s Annual Report). The management believes that providing this information enhances investors' understanding of the company’s core operating results and future prospects, consistent with how management measures and forecasts the company’s performance, especially when comparing such results to previous periods or objectives and to the performance of our competitors. This information should be considered in addition to, but not in lieu of, information prepared in accordance with IFRS. This presentation does not constitute or form part of, and should not be construed as, an offer or invitation to subscribe for or purchase securities in Eurofins Scientific S.E. and neither this document nor anything contained or referred to in it shall form the basis of, or be relied on in connection with, any offer or commitment whatsoever. Analyst forecasts quoted are based on published analyst views. They are the responsibility of the investment banks which publish those forecasts and should not be interpreted as representing the views or expectations of Eurofins Scientific or the Eurofins Scientific management. In particular, they do not constitute a profit forecast or estimate or trading statement by Eurofins Scientific S.E. Similarly, objectives presented are only objectives and may not be achieved in reality, potentially by a wide margin, due to a variety of factors.

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• Introduction
• Market & Strategic Positioning
• Finance & Outlook
• Transaction Overview
• Summary
• Appendix

Contents

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Eurofins’ Mission is to contribute to global Health, Safety & Environment with the best in bioanalysis

• Founded in 1987
• IPO in 1997 in Paris at EUR 1.83 per share
• Network of 200 laboratories in 36

countries

• Over 130,000 reliable analytical methods
• Over 17,000 employees
• Simplified shareholder structure: Martin

Family 42% of share capital (59% of voting rights); Free float 58%

Key figures 2014 2009-2014 CAGR Revenues EUR 1,410m 17% Reported EBITDA EUR 230m 31% Op CashFlow EUR 212m 27%

*Adjusted – reflect the ongoing performance of the mature and recurring activities excluding “separately disclosed items”

Food Environment Pharmaceuticals

Eurofins provides testing services in three main areas that have a strong impact on human health:

“Recent trends in global food production, processing, distribution and preparation are creating an increasing demand for food safety research in order to ensure a safer global food supply.” World Health Organisation

EUROFINS 2017: Mid Term Objectives

EUR 2bn Revenues (12% CAGR from 2014) >20% Adjusted EBITDA Margin

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Market size estimate

~ EUR 4bn

*To the best of Eurofins’ knowledge, based on data available to the Group

~ EUR 2.0bn ~ EUR 5bn N°1*

worldwide Start 1987 N°1 to N°3* worldwide Start 2000-2005

Testing ting for Pharma/ ma/ Biote tech ch Environ ronme ment nt Testing ting Food & Feed Testing ting N°1*

worldwide Start 2000

Eurofins ranking

N° 1 in Europe N° 1 in Germany N° 1 in France N° 1 in Scandinavia N° 1 in Benelux N° 1 in the UK** N° 1 in Brazil N° 2 in the USA** N° 1 in Agri Testing EU N° 1 in Europe N° 1 in Germany N° 1 in France N° 1 in Scandinavia N° 1 in Benelux N° 3 in USA N° 1 Worldwide in Pharma Product Testing N° 1 Worldwide in Discovery Pharmacology Services Among top 3 global providers

• f central laboratory, genomic

and agrosciences services N° 1 or 2 in most segments/ countries in Europe

** except routine Bacteriology - focus on high end analysis

New! New!

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New!

Leading global and local market positions

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Demand for safe pharmaceuticals, quality food and clean environment Risks linked to global sourcing and brand vulnerability Consolidation of the fragmented laboratory market and scale effects

Drivers for long-term market growth

Outsourcing of internal laboratories by industry One-stop shopping (focus on few global testing suppliers) Increasing wealth and quality of Life Technological progress Advancing globalisation New analytical methods and lower detection limits Consumer expectations for protection

Secular Underlying Fundamentals General Market Drivers Laboratory Market Drivers

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Strong growth fueled by market growth, share gains and acquisitions

2006-2011 CAGR 18%

• 200

400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2017

2,000

REVENUES EUR m CAGR 5yrs 17%

(2009-2014)

Objectives

CAGR 10yrs 23%

(2004-2014)

2014-2017 CAGR

12%

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On track towards 2017 objectives

Eurofins 5 year Report Card: 2009-2014 CAGR

17.1% 20.6% 27.0% Revenues Adjusted EBITDA Op CF Achievements in 2014

• Ca. 6% organic growth versus 5%
• bjective
• 19% increase in adjusted EBITDA to

EUR 260m vs. EUR 250m objective

• 17 acquisitions with combined

revenues in excess of €165m

• 25% increase in operating cash flows

2014: second year of our 5-year journey

• 15% revenue growth to EUR 1,410m (above EUR

1,400m objective)

• around 6% organic growth (around 7.5%

excluding companies in significant restructuring)

• Sustained operating momentum in the group’s

largest markets

• 17 acquisitions with total annualised revenues

in excess of EUR 165m

• 19% increase in adjusted EBITDA; 60bp margin

expansion

• 25% increase in Operating Cash Flow to EUR

212m

• 60,000m2 of world class lab surface added

versus 40,000m2 plan for 2014

• Entry into specialised, genomics-based

diagnostic testing market via the acquisition of ViraCor-IBT and Boston Heart*

*Acquisition closed on 31 January, 2015

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14.7% 12.6% 11.8%

0% 2% 4% 6% 8% 10% 12% 14% 16% 2012 2013 2014

Size of scope in restructuring is decreasing

Proportion of revenue contribution from start-ups & businesses in significant restructuring Separately Disclosed Items (SDI*) relative to EBITDA

• f mature companies**

SDI include one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new acquisitions undergoing significant restructuring, non-cash accounting charges for stock options, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill and transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions and the related tax effects

Group adjusted EBITDA margin

*

**The objective is for further significant reduction in 2015 onwards

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Network Build-Out to Position for the Future

Lab surface added m2 20,000 40,000 60,000 Faster site roll-out drives capex acceleration 2012 2013 2014

• 60,000m2 of modern lab surface delivered in 2014,

versus plan of 40,000m2

• 3 new sites; 6 major extension projects
• Strong progress in IT systems deployment
• eLIMS deployed in ca. 67% of Food and

Environment divisions

• OneIT almost fully deployed across Food and

Environment divisions

• Revised common Genomics and Agroscience IT

systems deployment on track for 2015 completion

• Eurofins On Line (EOL) almost fully deployed in

Food and Environment divisions

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0% 5% 10% 15% 20% € m € 50m € 100m € 150m € 200m 2012 2013 2014 Total Annualised EBITAS Margin of Acquisitions Total Annualised Revenues of Acquisitions

Network Build-Out to Position for the Future

2012-2014 Acquisitions

17 acquisitions completed in 2014

• Mostly high-growth and profitable

companies that provide Eurofins access to new, promising growth markets

• Acquisitions were profitable and in many

cases above Group profitability level

• No restructuring required

0.8x 1.7x 0.7x

Acquisition spend as a multiple of total revenues of acquisitions

11

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Selective acquisitions to consolidate and secure leadership of our markets

Lancaster Laboratories (US, Europe, 2011) IPL (France, 2011) Nihon Kankyo (Japan, 2012) Pan Labs (US, 2012), Cerep (France, 2013) and DDS Millipore (US, 2014) NZ Labs (NZ, 2012) and mgt-Labmark (Australia, 2013) Danone CLF (Germany, 2013) Applus Agrofood Testing (Spain, 2014) ViraCor IBT (USA, 2014) Anatech (Brazil, 2014)

• Global market leadership in pharma products testing
• Leading position in water testing in France
• Leading position in environment testing in Japan
• Create world leader in Discovery Pharmacology
• Strengthen Asia Pacific footprint
• Outsourcing for infant nutrition analysis, demonstrating

Eurofins capabilities

• Leading position serving the Spanish food & retail

industry

• Leveraging Eurofins’ genomics testing capabilities to

expand into new market segment

• Reinforces Eurofins’ footprint in one of the world’s

fastest-growing environmental testing markets

Selected transactions 2011-2014 Rationale/impact

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Acquisitions year to date in line with long-term sustainable growth and profitability objectives

Boston Heart Diagnostics (USA, 2015)

• Reinforces footprint in specialty clinical diagnostics;

focused on cardiovascular diseases, including proprietary genetic markers

Selected transactions YTD 2015 Rationale/impact

Experchem (Canada, 2015)

• Entry into Canadian bioanalytical testing market;

reinforces Eurofins’ leadership in nutraceutical testing Sắc Ký Hải Đăng (Vietnam, 2015)

• Entry into Vietnam testing market; strategic positioning

within high-growth food export market BioAccess (France, 2015)

• Entry into the complex, rapidly consolidating European

clinical diagnostic testing market, with strong entrepreneurial platform Biomnis (France, 2015)

• Expands Eurofins’ footprint in specialty clinical

diagnostic testing into Europe with the largest dedicated esoteric lab in France, and probably in Europe Diatherix (USA, 2015)

• Reinforces footprint into specialty clinical diagnostics for

infectious diseases. Proprietary Multiplex PCR technology for parallel testing of multiple infectious agents Emory Genetics Lab (USA, 2015)

• Renowned for testing for genetic diseases, carrier

screening, EGL reinforces Eurofins’ footprint in the genetics and genomic segment of the specialty clinical diagnostic testing market. Year to date, Eurofins has acquired, or signed agreements to acquire more than a dozen companies with total annual revenues in excess of EUR 500m. Below is a selection of those transactions

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An international network of world class, standardised laboratories is attractive for our customers

80% of the world’s population still has limited access to testing laboratories

• N. America

25.3% Germany 16.7% France 16.1% Others 14.7% Nordic Region 11.4% Benelux 10.2% UK & Ireland 5.5% 2014 revenue split :

Entry into high-growth markets with start ups & acquisitions

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Geared towards strong economies and fast-growing markets

Geographical breakdown of Eurofins’ revenues in 2014

Germany Austria Switzerland Benelux Nordics (Northern Europe) Germany + Northern Europe USA + APAC & EM Germany Northern Europe USA APAC & EM UK & Ireland Total Excluding France & Southern Europe France Italy Spain Portugal TOTAL 15

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Eurofins’ strategy aims at building long lasting competitive advantages

• Extensive expertise in local regulations for all

major markets, and one-stop contact for compliance in multiple countries

• Globally reliable standards of high quality and

consistency

• International key accounts management
• Internet-based transactions and access to

testing results

• Competence Centres & R&D activities
• Proprietary technologies for proof of
• rigin, virus phenotyping & authenticity

testing

• Continuous development/acquisition of

advanced technologies

One stop shop Leading technology Pure-play laboratory operator

• International network with a presence in

36 countries

• Vast technological portfolio with more

than 130,000 reliable methods

• Over 100 million assays performed per

year

• But one contact person for each

customer

• Industrialised processes
• Unrivalled expertise accessible to all

customers

• Continually expanding geographical coverage
• Proven operating model that can be rolled-out

in various/multiple markets

Quality of customer service

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• Introduction
• Market & Strategic Positioning
• Finance & Outlook
• Transaction Overview
• Summary
• Appendix

Contents

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Consumers’ increasing awareness and demand for safe and high quality food

The Food testing market has robust growth drivers

• Compels industry to strengthen its testing programs
• New products (GMOs, new packaging, etc.) create need for new tests
• Governments increase regulations on food control
• Brands have become more global and vulnerable to contaminations
• Transparency and traceability are becoming the priorities
• Increasing pressure on producers and manufacturers to invest in testing

Food scares and crises, widely covered in the media

Demand for a high quality, state-of-the-art, international network of laboratories

Globalisation: Raw materials sourced from countries with different QC practices Outsourcing of industry’s internal or state-

• wned

laboratories

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Retail & Distribution

Eurofins’ Food & Feed testing offering is the most comprehensive in the market

Agricultural production, product development Production

Dioxins Veterinary drug residues Organic residues POPs Heavy metals Irradiation Quality Control Vitamins GMO Labelling Purity Nutritional Microbiology Sensorial Authenticity Pesticides Mycotoxins Allergens

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Year Brand/ Contamination Impact Cost Country Salmonella in tomatoes and peppers

2008

• E. Coli in

cookie dough 70 people sick, 25 people hospitalized, job losses, withdrawal of 86 million "cookies-worth”, court proceedings initiated 50,000 infants ill, 6 deaths, global recall of dairy and related products, criminal charges in China Melamine in dairy products Sanlu/ Fronterra + global brands

~ USD 100-

250m

Unquantified

2009

About 1,500 people sick throughout US & Canada – pulling of products from shops & restaurants

2008

Nestlé North America/ Mexico Dioxins Recall of Irish pork products, job losses, destruction of 100,000 pigs

2008

FreshPlaza CNN Health BBC News

Irish pork

> EUR 300m Irish Exporters

Association

Salmonella in peanut butter

2008

~ USD 100m

• Est. only for

Kellogg’s 9 dead, 683 people sick, global recall of peanut butter and related products (1,600 types of products involved) Kellogg’s, Unilever, General Mills

Bloomberg

High profile food scares have expensive consequences for producers…

Dioxins in eggs, poultry and pork About 3,000 tons of feed contaminated with oil intended for use in bio-fuels, 4700 farms closed, revenues lost, tightening regulation

2011

Germany

BBC news

Beef products contaminated with horse meat Sales of frozen burgers plunged 43% and frozen ready meals fell 13% in the UK between 21 Jan – 17 Feb, 2013, at the height of the scandal

2013

Europe

The Guardian

~ EUR 360m

Market value lost for Tesco

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Eurofins is meeting the demands of global players

• The largest global food & beverage producers and retailers are clients of

Eurofins Food and Beverage Retailers

2013 Sales in EUR billion 2013 Sales in EUR billion

Nestlé

Switzerland

74.9

Unilever

UK /Netherlands 49.8

PepsiCo

USA

48.8

Coca-Cola

USA

34.4

Mars*

USA

25.0

Danone

France

21.3

McDonalds USA

20.6

Kraft Foods* USA

13.4

Kelloggs

USA

10.9

Pernod Ricard

France

8.6

* estimates

Wal-Mart Stores

USA 347.6

Carrefour

France 84.3

CostCo

USA 77.3

Tesco

UK 76.3

Kroger

USA 72.3

Metro AG*

Germany 65.4

Aldi*

Germany 57.0

Lidl *

Germany 56.7

Casino Guichard

France 48.6

ITM Enterprises

France 39.9

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The Pharma testing market is both healthy and full of potential

• The increasing complexity of clinical trials leads to increasing

amounts of diagnostic procedures performed per patent

• Regulatory bodies (e.g. FDA) are demanding more study data to

improve safety

• New wave of biologics require more testing
• Clinical trial processes are becoming increasingly rigorous to

ensure drug efficacy

• The spend per drug trial is rapidly increasing

Need for big pharma companies to expand new drugs pipelines Rapid technological change & increasing complexity in testing require ongoing investment in technology & expertise

Greater trial complexity & size will increase likelihood of using CROs

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Underlying trends are intact for continued growth

• Large pharmas need to refill their product

pipeline as the ‘blockbusters’ start to come

• ff patent
• Drug development expenditures have

increased substantially in recent years

• Total R&D is over USD 120bn and is

expected to further increase

• Sponsors outsource drug development to:
• Reduce their fixed cost base
• Access competencies that they do not have in-house
• Access experience and regulatory expertise in new

geographies

• Growth of biotechnology industry:
• Limited physical infrastructure
• Lack of internal expertise

Source: Citigroup Research 18 Feb, 2014 Source: Citigroup Research 18 Feb, 2014

Global Drug R&D Spending (US$ bn)

Total R&D Spend $ 140 bn Portion that could be

• utsourced

$ 80bn Currently Outsourced $34bn

Global % R&D Outsourced

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Eurofins Pharma Services

Genomics Discovery Pharmacology Pre-clinical / Early Development Clinical (Central Laboratory) Pharma Products Testing / cGMP QC

Spanning the entire drug development cycle

Sequencing Oligonucleotides Pharmacogenomics Transcriptomics Genotyping SNP-analysis Pharmacology Bioanalytical analysis Translational medicine Phase I studies Biomarkers Bioanalysis Immunogenicity Proteomics Microbiological and Anti-infective analysis Bioavailability Bioequivalence Impurities Analysis Stability Studies Process development Hygiene Monitoring Packaging analysis

Phases I - III Phase IV, Surveillance, Quality Control

Basic Research, Discovery, Combinatorial, Biological Product Libraries, etc

Pharmacology, Exploratory Toxicology, PK, Metabolism, etc

High-throughput- screening Molecular- pharmacology cell-based assays in vitro screening in vitro profiling in vivo safety in vivo efficacy

Specialty Clinical Diagnostics

Cardiovascular Diseases Immunodiagnostics Infectious Diseases Specific, fast-TAT testing for transplant patients

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9 of the top 10 largest global pharmaceutical companies are clients of Eurofins

Top 10 pharma companies

Pfizer Sanofi Aventis GlaxoSmithKline Novartis AstraZeneca Merck & Co Johnson & Johnson Roche Eli Lilly & Co Bristol-Myers Squibb

Global CRO Market

USA 60% Europe 20% Japan 8% Rest of World 12% Market Breakdown CAGR* 12% 9% 18% 14%

Source: William Blair &Co. * 2007 – 2012est.

Country

USA France UK Switzerland UK USA USA Switzerland USA USA

Eurofins Pharma Locations

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Clinical Diagnostics Services – a new source of growth for Eurofins

• Enabling healthcare

providers and patients to improve heart health and prevent disease with our integrated diagnostics, personalized reporting and lifestyle management solution

• Engaging reports and

interactive tools and services helps improve health literacy and drive medication adherence, behavior change, and better

• utcomes
• Accelerating medicine

through innovative molecular and immunodiagnostics

• Providing clinical diagnostic

solutions in infectious disease, allergy, hypersensitivity and immune disorders

• Working with vaccine,

pharmaceutical, biotech and medical device developers

• Rapid TAT to hospital clients

Viracor IBT Boston Heart

• An exciting source of growth potential for Eurofins
• Focused on advanced innovative clinical diagnostics services
• Platform companies with seasoned leadership
• New line of business allowing entering into a new strategic avenue

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• Proprietary Multiplexed

TEM-PCR™ technology for single simultaneous detection of multiple infectious disease causes (viruses and bacteria) at high levels of sensitivity and specificity

• Help physicians and

healthcare providers choose more effective antimicrobial therapy and improve patient

• utcomes

Diatherix

• Comprehensive testing

facilities for cytogenetic, biochemical and molecular genetics

• EGL leads the industry in

gene panels including cancer testing and exome sequencing

• Testing for genetic diseases,

carrier screening, as well as prenatal testing

EGL (Emory Genetics Lab)

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• Increasing demand by citizens for a clean environment
• EU expanding regulation (e.g. REACH)
• Increasingly long list of products identified as toxic
• Requirement for more sophisticated analyses and more

expensive equipment The Environmental testing market continues to grow

Rise in contamination & pollution issues Progress in epidemiology & medicine has identified more compounds as toxic

Compels industry to increase testing and outsource internal labs

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• Outdoor pollutants
• Indoor and ambient

pollutants

Eurofins serves all the main environmental testing markets

SOIL AIR WATER Eurofins is the No.1 environmental testing service provider in the world*

• Drinking water and groundwater

analysis

• Full range of contaminants
• Analysis of soil for full

range of contaminants Consulting and sampling companies are natural partners Lancaster Environmental Testing is the laboratory

• f choice for Fortune 500

companies in the USA

* Management estimate based on available information

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Global trends in regulation support the business

• Strong regulated markets (EU, USA) are still amending and adding regulations
• Eastern European rules catching up with EU
• Fast development of regulation in Asia
• Regulation used for support of trading blocks (e.g. EU, NAFTA, ASEAN)
• European Food Regulation (EC)178/2002

Recently passed

• European REACH directive
• US Country of Origin Labelling (COOL) law
• PRC Food Safety Law in China
• Food Safety Modernization Act (FSMA) in

USA In the pipeline

• Comprehensive Review of Food Labelling

Law and Policy in Australia & New Zealand

• Food imports
• Labelling (e.g. allergen, origin label,

reference intakes)

• Foodstuffs (marketing standards for

beverages, meat, fish, dairy products)

• Pesticides
• GMO & GM products
• Additives (vitamin & mineral fortification,

flavourings, sweeteners, enzymes) Key areas of food regulation Major pieces of legislation

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30 *Registration Evaluation and Authorisation of Chemicals(1): Regulation (EC) N° 1907/2006 and Directive 2006/121/EC of the European Parliament and of the Council

Metals, resins, acids, solvents, oils, fibres in textile, car components, toys, cosmetics, plastics, rubber, microchip, etc. Food and drug ingredients are excluded

EU regulations a key driver for the testing industry – e.g. REACH directive

• Listing and assessing the safety of 30,000

chemical substances used by industries in Europe over 11 years

• Replacing the most dangerous ones - no

chemical safety studies were conducted before 1981; only 3,700 new chemicals analysed up to 2008 out of 100,000 used currently in EU Time line

Physico-chemical properties: density, viscosity, etc. Toxicity: skin, eye, mutagenicity, inhalation, oral, reproductive Ecotoxicity: invertebrates, plants, fish, birds, soil, water, degradation

Increasing testing requirements from 2010 Objectives Examples of affected products or industries Type of testing Estimated cost EUR 10bn according to the EU including EUR 1.5bn for testing over 11 years

> 1 t/ p.a. production > 100 t/ p.a. production > 1,000 t/ p.a. production + substances of very high concern Nov 2010 May 2013 May 2018

Deadlines for registration

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Outsourcing adds to market growth Examples of laboratories outsourced to Eurofins

Danish Hydrology Inst. Official water reference lab Scandinavia Suez/Sita Envirolab The Netherlands Danish farmers association Steins’ water/environment laboratory Denmark Southern Water Water testing laboratory UK Lyon University Hospital Phase I Activity France Austrian Research Institute Food testing Austria Clermont University Mineral water analysis France Raisio Group Food product testing Finland Mondi Environmental, paper/pulp testing Slovakia DLG Group Food and feed producer Denmark Miljølaboratoriet Environmental testing network Denmark BASF/QTA Environmental, chemicals USA MWH Global Environmental, water-testing USA TÜV SÜD Dioxin Analysis Germany Cranswick plc Food testing UK Danone Infant and clinical nutrition analysis Germany

Company Outsourced Activity Country

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Eurofins’ strategy builds high Barriers to Entry

• GLP
• GMP
• GCP

ISO 9001 ISO 17025 FDA Approved

Offering a premium quality service … ... and leveraging internal efficiencies

• Portfolio: over 130,000 reliable methods –

unique in the world and ahead of competition

• Global laboratory network: fully set up for

cross-selling worldwide to customers

• Accreditations: multiple international

accreditations

• One-stop shop: single point of contact for

compliance to regulations of many countries

• Standardised testing in 36 countries
• Sales and marketing: international teams

plus dedicated key account management

• Reputation: high standards of quality and

consistency - the Eurofins brand

• Internet: web-based transactions and
• nline access to testing results increase

switching costs

• Industrialising the laboratory process:

rationalisation of sites and personnel

• Competence Centres: high volume

laboratories providing highest levels of expertise and service

• Technology: the latest available in the

market providing the most accurate results

• Economies of scale in Group purchasing

and sales functions

• IT systems: cross-Group information tools

and standardised production systems

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• Introduction
• Market & Strategic Positioning
• Finance & Outlook
• Transaction Overview
• Summary
• Appendix

Contents

SLIDE 34

• 100 new/expanded modern state-of-the-art sites to enable consolidation /

closure of smaller or old sites

• Total of ca. 300,000 m2 added or brought to most modern standards

between 2005 – 2014 (60,000 m2 in 2014 alone)

• 100,000 m2 of additional modern laboratory surface planned for 2015-2016,
• f which over 40,000m2 planned to come on stream in 2015 alone

Kalamazoo Vallensbaek Hamburg Les Ulis Saverne Acton Singapore Ebersberg

2006 - 2009

Holsterbro Lidköping Rotterdam Cuneo Washington Huntsville Suzhou Nantes Denver Princeton Vejen Malbork Niefern Sao Paolo

Major facilities : new or recently upgraded and planned for 2015-2016

2010 / 11

Cologne Barneveld Des Moines Shanghai Shenzhen Tokyo Nantes (Micro) Ebersberg ext. Wolverhampton Saverne, FR ext. Glostrup, DK Melbourne, AU Monrovia, CA Garibaldi, BR Mikkeli, FI

2012 2015 / 2016

Freiberg, DE Ebersberg, DE ext. Niefern, DE ext. Reichenwalde,DE ext. Douai, FR ext. Saverne, FR ext. Les Ulis, FR ext. Moss, NO ext. Uppsala, SE ext. Boston, MA ext. Louisville, KY Hamburg, DE ext. Nantes, FR ext Aix-en-Provence, FR Amsterdam, NL Dungarvan, IE ext. Lancaster, PA ext.

• St. Charles, MO ext.

Des Moines, IA ext. Auckland, NZ ext Yokohama; JP ext Hamburg, DE ext. Seattle, WA Vergeze, FR ext. Graauw, NL Wageningen, NL

2013

34

2014

Hamburg, DE ext. Vejen, DK ext Bangalore, IN New Orleans, LA Lancaster, PA ext. Auckland, NZ Sidney, AU Bordeaux, FR Mouds View, MN

Laboratory Network Investments: Expansion / Modernization of Laboratory Sites

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Market Share: Eurofins is the leader in its industry – and we continue to reach new market leadership positions

New Markets = Market Entry Denmark: Food and Env. Brazil: Food Testing France Environment Testing USA: Pharma Products Testing Sweden, Norway: Food and Env. Testing Europe: Agroscience, Genomics Japan: Genomics Italy, Poland, Austria, Slovakia Agri Testing Europe Hungary, Finland China, India, Singapore, Japan Environment Australia, New Zealand Global: Discovery Pharmacology

X

No 1

2001 2002 2003 2004 2005 2006 2007 2008

Eurofins already has long-standing no.1 or no.2 positions in its main markets: e.g. Germany (Food + Env.), France (Food), Benelux (Food + Env.)

2009 2010 2011 2012

No 1

X

No 1

X

No 1

X

No 1

X

No 1

X

No 1

X

No 1/3

X X X

2013

X X

No 1

X X

No 1

2014

35

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• Start-ups: 17 start ups

between 2006 and 2010

• Typically losses in years 1 and

2 of about EUR 1-2m p.a. per start-up

• Initial Capex EUR 1- 3m per

lab (e.g. premises, equipment)

• Upgrade existing laboratories:
• ca. EUR 575m invested in

additional capital in 2006-2014

Heavy investment in new markets and resources for future profits

• Deploy IT systems

eLIMS, eCommerce (EOL)

• Best practice lab
• rganisation & processes
• Consolidation into large,

world-class sites

• Standardised testing

procedures

• Invest in state-of-the-art

technology Under development perimeter Bringing recently acquired labs to group standards Building corporate resource for future size and growth

• Recruitment of top

leadership

• Additional layer of

management to lead global business lines

• Central IT systems and

processes (e.g. ERP, CRM)

• Additional central cost

+EUR 10m 2010 vs 2005 +EUR 27m 2014 vs 2010

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Positive trends drive solid operating results

Adjusted – reflect the ongoing performance of the mature and recurring activities excluding “separately disclosed items”. Separately disclosed items - includes one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new acquisitions undergoing significant restructuring, non-cash accounting charges for stock options, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill and transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions and the related tax effects.

2014 2013 +/- % Adjusted Results EURm Adjusted Results Separately disclosed items Statutory Results Adjusted Results Separately disclosed items Statutory Results Revenues 1,410.2 1,410.2 1,225.6 1,225.6 15.1% EBITDA 260.4

• 30.4

230.0 219.3

• 30.2

189.1 18.8% EBITDA Margin (%) 18.5% 17.9% 60 bp EBITAS 189.9

• 41.2

148.7 161.9

• 39.7

122.2 17.3% Net Profit 128.2

• 49.1

79.1 116.8

• 44.6

72.2 9.8% Basic EPS (€) 8.47

• 3.25

5.23 7.79

• 2.97

4.81 8.8%

• Op. Cash Flow

212.2 169.3 25.3% Capex 131.2 98.7 Net Debt 493.6 386.8 Net debt/adjusted EBITDA 1.90x 1.76x

SLIDE 38

38

Strong underlying profitability enables investments

2014 EBITDA Composition EURm

SLIDE 39

Growth and Profitability are critical objectives

• 3-tiered margin support towards mid-term

profitability objective

• 1. Start of profit contribution from start-ups
• 2. Proportion of companies in restructuring

becoming smaller compared to the size of the Group (11.8% of total Group revenues in 2014 versus 12.6% in 2013 and 14.7% in 2012).

• 3. Investments in large industrialized

laboratories unlock operational leverage

• A target “cruising altitude” of >20% adjusted

EBITDA margin, in addition to top line growth should ensure continued earnings and cash flow growth

39

Group Profitability Objectives++

*E – company objectives ++ Based on stated company objectives and assumes linear acquisitions until 2017

10% 12% 14% 16% 18% 20% 22% 500 1,000 1,500 2,000 2,500 2011 2012 2013 2014 2017E*

Group Adjusted EBITDA margin % Group Revenues

Revenues from mature businesses Revenues from start-ups and companies in significant restructuring

SLIDE 40

• EUR 300m hybrid issued in Jan 2013, callable

at par by Eurofins in Jan 2020. Bears a fixed coupon of 7.00% until first call, Euribor 3m + 818 bp thereafter if not called Hybrid OBSAAR

• EUR 117.3m outstanding as of 30 June 2015
• maturity: split evenly across June 2016 and 2017

Solid Balance Sheet

3.5 x

• Net Debt/ Adjusted EBITDA

Dec’13 Dec’14 1.90 x Maximum

• Net Debt (EUR m)

386.8

40

Net Debt calculation Short-term borrowings

+ Long-term borrowings

• Cash & cash equivalents

= NET DEBT

• Total Equity (EUR m)
• EUR 170m issued in July 2011
• 5-7 year maturity; mid-swap or Euribor 6m +

spread of 180-220 bp respectively Schuldschein 1.76 x 493.6 664.2

• Cash + cash

equivalents (EUR m) 297.3 216.6 394.7

• EUR 300m Eurobond issued in Nov 2013, 5-yr

maturity (2018) at an annual interest of 3.125%

• EUR 500m Eurobond issued in Jan 2015, 7-yr

maturity (2022) at an annual interest of 2.25% Eurobond

• EUR 300m hybrid issued in April 2015, callable

at par by Eurofins in April 2023. Bears a fixed coupon of 4.875% until first call, Euribor 3m + 701 bp thereafter if not called

SLIDE 41

1.68 x 1.70 x 1.76 x 1.90 x 0.00 x 0.50 x 1.00 x 1.50 x 2.00 x 2.50 x 3.00 x 3.50 x 2011 2012 2013 2014

41

High Degree of Financial Flexibility

41 Net Debt/ Adjusted EBITDA: max 3.5x

• Debt ratios remain well below covenant limits despite EUR

453m* cash invested in the business in 2014 (EUR 215m cash in 2013)

• Largely capex and acquisitions which did not fully contribute

yet in 2014

• Large financial flexibility with fairly long debt maturity
• OBSAAR issued in 2010; avg. maturity 2016
• Schuldschein issued in 2011; avg. maturity 2017
• EUR 300m hybrid issued in 2013; perpetual, callable 2020
• EUR 300m Eurobond issued in 2013; maturing 2018
• EUR 500m Eurobond issued in 2015; maturing 2022**
• EUR 300m hybrid issued in 2015; perpetual, callable 2023***
• Revolving Credit Facilities
• Continued profitability improvement means that key debt

ratios have slowly increased despite an increase in absolute amount in Net Debt to EUR 494m from EUR 387m in December 2013. This ratio should temporarily increase in 2015. Substantial headroom in the balance sheet

41

* EUR 453m cash investments = EUR 131m capital expenditures + EUR 292m in acquisitions + EUR 30m one-off restructuring costs and temporary losses ** Issued in January 2015 *** Issued in April 2015

SLIDE 42

42

• EUR 709m of gross senior debt as of 31 December 2014 (net debt of EUR 493.6m)
• >95% of senior debt in Eurofins Scientific SE (holding level)
• Main facilities in Eurofins Scientific SE:
• OBSAAR bonds :

EUR 176m

• Schuldschein :

EUR 170m

• Bilateral RCF (undrawn): ca. EUR 300m
• Eurobond 2018

EUR 300m

• ca. EUR 20m of bank borrowings are secured over buildings and assets (in

subsidiaries)

• EUR 500m 7-Yr Eurobond issued in January 2015 at a fixed interest rate of 2.25%
• In addition, EUR 600m Hybrid bond (considered equity under IFRS), non-dilutive

bond with perpetual maturity, EUR 300m callable at par by Eurofins in Jan 2020, with the remaining EUR 300m also callable at par by Eurofins in April 2023.

Financing facility overview as of 31 December 2014

SLIDE 43

43

Maturity profile of senior debt at Holding level as of 30 June 2015

For private use only – Strictly confidential

Senior debt in Eurofins Scientific SE (EURm)

€ 58.7m € 211.7m € 58.7m € 362m € 500m

SLIDE 44

44

• Food safety & contamination

issues

• New regulations (e.g. FSMA,

REACH)

• Outsourcing trend
• Risks due to globalisation of

trade

• Vulnerability of global brands
• Scientific developments (e.g.

GMOs, Biologics…. ) + new testing methods

Outlook: becoming the world leader in the bioanalytical testing market

• Unique technological portfolio of
• ver 130,000 methods
• Volume scale advantage &

Competence Centres

• Focus on running labs
• Global network of standardised

labs

• Experience in integrating value

adding acquisitions

• Recurring revenues with high

switching costs and high barriers to entry

+

Key Success Factors Sustainable Market Growth Drivers

Eurofins’ unique position in a young, fast growing and fragmented market should lead to long term, sustainable profitability

=

Solid Outlook

SLIDE 45

45

• Introduction
• Market & Strategic Positioning
• Finance & Outlook
• Transaction Overview
• Summary
• Appendix

Contents

SLIDE 46

46

Potential transaction rationale

• Following an intense M&A activity in H1 2015 with more than a dozen

transactions signed* representing in excess of EUR500m in annual sales and EUR 700m in enteprise value (if all do close successfully)

• Going forward, Eurofins is committed to maintaining a very strong balance

sheet with significant headroom to be able to respond swiftly to compelling

• pportunities
• Use of proceeds would be for organic and external growth, as well as general

corporate purposes

• The instrument would also be used for debt management purposes (such as

potential early redemption of OBSAAR bonds and Schuldschein, which now have short maturity profiles)

• The issue would further improve Eurofins’ liquidity position by lengthening its

debt maturity profile and reduce its cost of capital

*including Bio-Access and Biomnis in France: both deals signed but not closed to date; successful completion subject to fulfillment of conditions precedent

SLIDE 47

47

Terms & Conditions

• Issuer:

Eurofins Scientific S.E., [acting through its French Branch]

• Issue rating:

Not rated

• Issue size:

Benchmark size expected

• Maturity:

7.5 year (Jan-23)

• Denomination:

EUR 100k + 1k

• Listing:

Luxembourg Stock Exchange (regulated market)

• Type:

Senior unsecured

• Documentation:

Standalone / Change of Control / Make Whole / Clean-Up Call / 3 Months Par Call

• Governing law:

Luxembourg law

• Joint bookrunners:

BNP Paribas / HSBC / SG CIB

SLIDE 48

48

• Introduction
• Market & Strategic Positioning
• Finance & Outlook
• Transaction Overview
• Summary
• Appendix

Contents

SLIDE 49

49

High-growth, non-cyclical markets driven by secular mega-trends Advancing globalisation but with very few global testing suppliers Fragmented competition & opportunities for consolidation Very recurring business; 6% - 12% historic organic growth High barriers to entry Best in class technology and quality give best brand protection

• No. 1 or 2 worldwide in most business lines

Strong international presence in 36 countries State-of-the-art laboratory infrastructure High switching costs for clients Good cash flow visibility Experienced multi-national leadership

Conclusion: our sustainable competitive advantage

• Track record of profitable growth – Strong ROCE and cash flow generation potential
• ROCE* of 14.7% and ROE** of 20.0% in 2014 despite significant future-orientated investments and one-off restructuring

costs

• 5-year CAGR: Revenues 17.1%, Operating Cash Flow 27.0%
• Large potential to roll out business model in fast growing economies
• Following the last intense investment cycle (2006-2010), Eurofins is well-positioned to double in size and reach EUR

2bn in revenues by 2017 whilst maintaining leadership in multiple markets and improving profitability

*ROCE = EBITAS/Average Capital Employed over previous 4 quarters **ROE = Net Profit/Equity at the beginning of the year

SLIDE 50

50

Appendix / Back up slides

SLIDE 51

51

Consolidated Income Statement

2014 2013 EUR Thousands Adjusted results Separately disclosed items Reported results Adjusted results Separately disclosed items Reported results

Revenues

1,410,227

• 1,410,227 1,225,572
• 1,225,572

Operating costs, net

• 1,149,797
• 30,420
• 1,180,217 -1,006,291
• 30,191
• 1,036,482

EBITDA 260,430

• 30,420

230,010 219,281

• 30,191

189,090 Depreciation and amortisation

• 70,546
• 10,737
• 81,283
• 57,380
• 9,500
• 66,880

EBITAS 189,884

• 41,157

148,727 161,901

• 39,691

122,210 Non-cash stock option charge and acquisition-related expenses, net

• 16,889
• 16,889
• 9,977
• 9,977

EBIT 189,884

• 58,046

131,838 161,901

• 49,668

112,233 Finance income 2,232

• 2,232

1,112

• 1,112

Finance costs

• 32,980
• 32,980
• 24,570
• 24,570

Share of (loss)/ profit of associates 243

• 243

288

• 288

Profit before income tax 159,378

• 58,046

101,332 138,731

• 49,668

89,063 Income tax expense

• 31,131

8,930

• 22,201
• 22,049

4,879

• 17,170

Net profit and loss for the period 128,247

• 49,116

79,131 116,682

• 44,789

71,893 Net profit and loss attributable to:

• Equity holders of the Company

128,195

• 49,091

79,104 116,759

• 44,579

72,180

• Non-controlling interests

52

• 25

27

• 77
• 210
• 287

7

• 7

7

• 7

7

• 7

9

• 9

– – Adjusted – reflects the ongoing performance of the mature and recurring activities excluding “separately disclosed items”. Separately disclosed items – includes one-off costs from integration, reorganisation, discontinued operations and other non-recurring income and costs, temporary losses and other costs related to network expansion, start-ups and new acquisitions undergoing significant restructuring, non- cash accounting charges for stock options, impairment of goodwill, amortisation of acquired intangible assets, negative goodwill and transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts due for business acquisitions and the related tax effects.

SLIDE 52

52

Consolidated Balance Sheet

EUR Thousands 2014 2013 Property, plant and equipment 323,747 251,113 Goodwill 679,030 456,388 Other intangible assets 193,534 86,382 Investments in associates 2,887 4,594 Financial assets and other receivables 23,264 16,805 Deferred tax assets 26,333 32,757 Total non-current assets 1,248,795 848,039 Inventories 24,623 20,141 Trade accounts receivable 321,476 272,650 Prepaid expenses and other current assets 43,625 34,353 Current income tax assets 14,728 20,141 Cash and cash equivalents 216,620 297,257 Total current assets 621,072 644,542 Assets classified as held for sale 3,323 4,435

Total assets

1,873,190 1,497,016 Share capital 1,520 1,507 Hybrid capital 300,000 150,000 Other reserves 105,510 98,699 Retained earnings 220,986 154,235 Currency translation differences 28,467

• 16,755

Total attributable to equity holders of the Company 656,483 387,686 Non-controlling interests 7,758 7,054 Total shareholders' equity 664,241 394,740 Borrowings 638,054 666,875 Derivative financial instruments 12,362 15,119 Deferred tax liabilities 42,274 28,965 Amounts due for business acquisitions 25,235 16,928 Retirement benefit obligations 34,616 30,691 Provisions for other liabilities and charges 4,903 4,985 Total non-current liabilities 757,444 763,563 Borrowings 72,178 17,228 Interest and earnings due on hybrid capital 23,832 14,123 Trade accounts payable 127,141 100,951 Advance payments received 18,621 14,369 Deferred revenues 18,804 16,764 Current income tax liabilities 11,476 20,934 Amounts due for business acquisitions 19,073 9,892 Provisions for other liabilities and charges 8,279 10,881 Other current liabilities 152,101 133,571 Total current liabilities 451,505 338,713

Total liabilities and shareholders' equity

1,873,190 1,497,016

SLIDE 53

53

Consolidated Cashflow Statement

EUR Thousands 2014 2013 Cash flows from operating activities Result before income taxes 101,332 89,063 Adjustments for: Depreciation and amortisation 81,283 66,880 Non-cash stock option charge and acquisition-related expenses, net 16,889 9,977 Other non-cash effects 3,285 862 Financial income and expense, net 30,701 22,302 Share of profit from associates

• 243
• 288

Transactions costs and income related to acquisitions

• 1,605
• 2,233

Increase (decrease) in provisions, retirement benefit obligations

• 4,276
• 531

Change in net working capital 17,077 13,773 Cash generated from operations 244,443 199,805 Income taxes paid

• 32,270
• 30,466

Net cash provided by operating activities 212,173 169,338 Cash flows from investing activities Acquisitions of subsidiaries, net of cash acquired

• 291,798
• 87,437

Purchase of property, plant and equipment

• 105,506
• 79,229

Purchase, capitalisation of intangible assets

• 29,018
• 20,327

Proceeds from sale of property, plant and equipment 3,334 832 Change in investments and financial assets, net

• 1,631
• 3,987

Interest received 2,233 1,130 Net cash used in investing activities

• 422,386
• 189,018

Cash flows from financing activities Proceeds from issuance of share capital 6,898 7,992 Proceeds from borrowings 41,277 325,261 Repayments of borrowings

• 27,220
• 83,651

Change in hybrid capital 163,316

• 9,114

Dividends paid to shareholders and non-controlling interests

• 18,314
• 15,485

Earnings paid to hybrid capital investors

• 5,667
• 9,666

Interest paid

• 30,476
• 21,370

Net cash provided by financing activities 129,814 193,967 Net effect of currency translation on cash and cash equivalents and bank

• verdrafts

2,221

• 3,236

Net increase (decrease) in cash and cash equivalents and bank overdrafts

• 78,178

171,051 Cash and cash equivalents and bank overdrafts at beginning of period 293,268 122,217 Cash and cash equivalents and bank overdrafts at end of period 215,090 293,268

SLIDE 54

Eurofins has vastly outperformed the market since its IPO and each of its 3 equity offerings (based on share price of EUR 212.05 as of 31 December 2014)

1997 € 5m 1998 rights issue € 6m

SPO 1

1999 rights issue € 7m

SPO 2

2000 SPO € 38.5m

SPO 3

Eurofins: +11,484% (32% CAGR)

CAC 40: +54% (3% CAGR) SBF 120: +78% (3% CAGR) S&P 500: +135% (5% CAGR)

Eurofins: +2,593% (23% CAGR) CAC 40: +20% (1% CAGR) SBF 120: +39% (2% CAGR) S&P 500: +93% (4% CAGR) Eurofins: +2,670% (25% CAGR) CAC 40: -9% (-1% CAGR) SBF 120: 5% (0% CAGR) S&P 500: +59% (3% CAGR) Eurofins: +393% (12% CAGR) CAC 40: -32% (-3% CAGR) SBF 120: -20% (-2% CAGR) S&P 500: +49% (3% CAGR) Eurofins: +1166% (29% CAGR) CAC 40: +12% (1% CAGR) SBF 120: +24% (2% CAGR) S&P 500: +70% (5% CAGR)

10 years Since SPO 2 Since SPO 1 Since IPO Since SPO 3 2 years

Eurofins: +73% (32% CAGR) CAC 40: 17% (8% CAGR) SBF 120: 20% (10% CAGR) S&P 500: +44% (20% CAGR)

5 years

Eurofins: +455% (41% CAGR) CAC 40: 9% (2% CAGR) SBF 120: 18% (3% CAGR) S&P 500: +85% (13% CAGR)

Total equity raised in 4 offerings: only EUR 56m

54

IPO

SLIDE 55

TICS Organic Growth

Source: Eurofins, Company websites

In spite of its lower cyclicality, Eurofins generates comparable organic growth to its larger peers in each peak

• f the cycle, and higher growth when the economy slows

TICS ex ERF = SGS, Intertek, Bureau Veritas

*

55

Title: Eurofins Corporate Presentation FY 2014 Document name: FY 2014.ppt EDR: 1-C-IR-PRE-01236128 Document owner: Pamela Antay

SLIDE 56

We have built a hard-to-replicate world-class infrastructure

Eurofins has been consistently investing more than its peers

Source: Eurofins, Company reports TICS ex ERF = SGS, Intertek, Bureau Veritas

*

56

Title: Eurofins Corporate Presentation FY 2014 Document name: FY 2014.ppt EDR: 1-C-IR-PRE-01236128 Document owner: Pamela Antay

56

SLIDE 57

57

Post acquisition and integration into Eurofins, both sales and profits increase significantly

Illustration

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Annual Sales / million Acquired by Eurofins CAGR 19% EBITA margin in % of sales <8% >20%

Growth drivers post acquisition:

1)

Sales increase through cross selling of Eurofins lab specialities internationally

2)

Cost reduction – focus on most frequently performed tests

Frequency (e.g. no. of tests per day)

• No. of tests offered

100 Prior to acquisition 50% 50% % of employees performing tests Can be subcontracted to specialised Eurofins laboratories after acquisition 400

Focus and scale drive profitability Actual example of an acquired lab:

100 50 500

Company A