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First Quarter ResultsMillipore 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
Q1 2004 - better than expected
19% revenue growth over Q1 2003 10% revenue growth in local currency* 25% earnings per share growth Biotechnology - 15% growth in local currency Life sciences - 13% growth in local currency 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
Americas44%
Europe36%
Asia/Pacific20%
Q1 FY 2004
Q1 2004 revenues (in local currencies)
Biotechnology34%
Life Science
15%
OtherBioscience Applications
51%
Q1 FY 2004
Consumables and Services
83%
Equipment17%
Q1 FY 2004
5
Q1 revenue growth - by geographic region
Americas $ 89 $ 78 14% 13%
Europe 90 74 22% 6%
Asia/Pacific 43 35 23% 12%
Total U.S. dollar $222 $187 19% 10%
% GrowthQ1 Local
$ in millions Q1 2004 Q1 2003 % Growth Currency
6
Q1 Revenue growth - by market
Biotechnology $70 $61 15%
Life Science 30 27 13%
Other Bioscience 103 96 7%
Total local currency 203 184 10%
Foreign Exchange 19 3
Total U.S. dollar $222 $187 19%
Q1
$ in millions Q1 2004 Q1 2003 % Growth
7
Biotechnology – quarterly revenue growth and trends (in local currencies)
$ millions
Quarterly Growth Q1 2000 – Q1 2004
$0
$10
$20
$30
$40
$50
$60
$70
$80
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
0%
3%
6%
9%
12%
15%
18%
21%
24%
27%
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Revenues by Quarter Q1 2000 – Q1 2004
‘00 ‘01 ‘02 ’03 ‘04
‘00 ‘01 ‘02 ’03 ‘04
8
Over 2000 biologicals in pipeline or launched
0
100
200
300
400
500
600
700
800
900
1000
1100
1200
1300
Pre-clinical Phase 1 Phase 2 Phase 3 AwaitingApproval orApproved
1228
222
355
87
405
Pharmaprojects V5, from PJP Publications, NYC & London, April, 2004
*Embrel is classified as a fusion protein in Pharmaprojects, was added to query totals
0
100
200
300
400
500
600
700
800
900
1000
Pre-clinical Phase 1 Phase 2 Phase 3 AwaitigApproval orApproved*
Over 500 therapeutic antibodies in pipeline or launched
47 7419 22
387
Biological pipeline
9
Life science – quarterly revenue growth and trends (in local currencies)
$ millionsQuarterly Growth Q1 2000 – Q1 2004
$0
$5
$10
$15
$20
$25
$30
$35
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1-5%
0%
5%
10%
15%
20%
25%
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
Revenues by Quarter Q1 2000 – Q1 2004
‘00 ‘01 ‘02 ’03 ‘04 ‘00 ‘01 ‘02 ’03 ‘04
10
$ millionsQuarterly Growth: Q1 2000 – Q1 2004
$0
$20
$40
$60
$80
$100
$120
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
-5%
0%
5%
10%
15%
20%
25%
Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1
Revenues by Quarter: Q1 2000 – Q1 2004
Other bioscience – quarterly revenue growth and trends (in local currencies)
‘00 ‘01 ‘02 ’03 ‘04‘00 ‘01 ‘02 ’03 ‘04
11
Actual Dollars (In millions, except EPS) Q1 2004 Q1 2003 Growth
Sales $ 222.5 $ 187.5 19%
Gross Profit 121.6 105.1 16%% of Sales 54.6% 56.1%
SG&A 67.8 60.0 13%% of Sales 30.5% 32.0%
R&D 16.0 13.8 16%% of Sales 7.2% 7.4%
Operating income 37.8 31.3 21%% of Sales 17.0% 16.7%
Net income $ 27.2 $ 21.3 28%
EPS $ 0.55 $ 0.44 25%
Q1 income statement
12
Currency effects
Euro/Dollar, 1/2/04 - 4/2/04Yen/Dollar, 1/2/04 - 4/2/04
0.78
0.8
0.82
0.84
0.86
0.88
0.9
104
106
108
110
112
114
13
Guidance, 2004
Revenue growth: Actual dollar: 10 to 12% Local currency: 6 to 8%
Revenue growth by market - local currency Biotechnology: 7 to 9% Life Sciences: 8 to 10% Other Bioscience: 5
to 7%
Gross Margins: averaging 54% of revenue
SG&A: averaging 30% of revenue
R&D: between 7 and 7.5% of revenue
Contribution: approximately 17% of revenue
EPS: $2.19 to $2.29 per share
Capital Expenditures $65 - $70M
Depreciation and amortization $44M
Cash from operations $130 - $135M