First Quarter Results Millipore Conference Call, April 20, 2004
2 Forward-looking statements/risk factors In order to take advantage of the safe harbor provisions of the private securities litigation reform act of 1995, you should understand that we will be making forward-looking statements in this conference. These statements involve a number of risks and uncertainties, all of which are set forth in detail in our annual report on form 10-K, subsequent quarterly reports on form 10-Q, and our other SEC filings. We assume no obligation to update any forward-looking statement based on new information, future events or any other reason.
3 Q better than expected n 19% revenue growth over Q n 10% revenue growth in local currency* n 25% earnings per share growth n Biotechnology - 15% growth in local currency n Life sciences - 13% growth in local currency n Other bioscience - 7% growth in local currency Use of Non-GAAP Financial Measures* All references to "local currencies" represent the foreign currency balances translated, in all periods presented, at Millipore's predetermined budgeted exchange rates for 2004, thus excluding the impact of fluctuations in the actual foreign currency rates. In addition to analyzing financial results at actual rates of exchange, management uses this presentation because we believe that the local currency results provide a clearer presentation of underlying business trends separate from the impact of foreign currency. The U.S. dollar results represent the foreign currency balances translated at actual exchange rates.
4 Americas 44% Europe 36% Asia/Pacific 20% Q1 FY 2004 Q revenues (in local currencies) Biotechnology 34% Life Science 15% Other Bioscience Applications 51% Q1 FY 2004 Consumables and Services 83% Equipment 17% Q1 FY 2004
5 Q1 revenue growth - by geographic region Americas$ 89$ 7814%13% Europe907422%6% Asia/Pacific433523%12% Total U.S. dollar$222$18719%10% % Growth Q1 Local $ in millions Q1 2004Q1 2003% Growth Currency
6 Q1 Revenue growth - by market Biotechnology $70$6115% Life Science302713% Other Bioscience103967% Total local currency % Foreign Exchange193 Total U.S. dollar$222$18719% Q1 $ in millions Q1 2004Q % Growth
7 Biotechnology – quarterly revenue growth and trends (in local currencies) $ millions Quarterly Growth Q – Q Revenues by Quarter Q – Q ‘00 ‘01 ‘02 ’03 ‘04
8 Over 2000 biologicals in pipeline or launched Pharmaprojects V5, from PJP Publications, NYC & London, April, 2004 *Embrel is classified as a fusion protein in Pharmaprojects, was added to query totals Over 500 therapeutic antibodies in pipeline or launched Biological pipeline
9 Life science – quarterly revenue growth and trends (in local currencies) $ millions Quarterly Growth Q – Q Revenues by Quarter Q – Q ‘00 ‘01 ‘02 ’03 ‘04
10 $ millions Quarterly Growth: Q – Q Revenues by Quarter: Q – Q Other bioscience – quarterly revenue growth and trends (in local currencies) ‘00 ‘01 ‘02 ’03 ‘04
11 Actual Dollars (In millions, except EPS) Q1 2004Q Growth Sales$ 222.5$ % Gross Profit % % of Sales54.6%56.1% SG&A % % of Sales 30.5%32.0% R&D % % of Sales 7.2%7.4% Operating income % % of Sales17.0%16.7% Net income$ 27.2$ % EPS$ 0.55$ % Q1 income statement
12 Currency effects Euro/Dollar, 1/2/04 - 4/2/04 Yen/Dollar, 1/2/04 - 4/2/04
13 Guidance, 2004 n Revenue growth: n Actual dollar: 10 to 12% n Local currency: 6 to 8% n Revenue growth by market - local currency n Biotechnology: 7 to 9% n Life Sciences: 8 to 10% n Other Bioscience:5 to 7% n Gross Margins: averaging 54% of revenue n SG&A: averaging 30% of revenue n R&D: between 7 and 7.5% of revenue n Contribution: approximately 17% of revenue n EPS: $2.19 to $2.29 per share n Capital Expenditures $65 - $70M n Depreciation and amortization $44M n Cash from operations $130 - $135M