Eurofins Scientific : First Half-Year 2023 Report

Half Year Report

2023

Disclaimer

This document is neither a prospectus for the purposes of Regulation (EU) 2017/1129 or other foreign regulations, nor an official authorised document, nor a sworn translation thereof and has not been approved, filed or reviewed by any regulatory authority. This document is intended for informational purposes only and does not constitute or form a part of any offer for sale or subscription or solicitation of any offer to buy or subscribe any securities of Eurofins Scientific SE (hereinafter the "Company" or "Eurofins Scientific") nor shall it, or any part of it, form the basis of or be relied upon in connection with any decision to purchase securities of the Company or enter in any contract with, or commitment to, the Company whatsoever.

The Company has taken reasonable care to ensure that the facts stated in this document are true and accurate in all material respects but makes no representations or warranties regarding the reliability or absence of material errors or omissions in or from this document. Information contained herein is based on sources believed to be reliable but is neither exhaustive nor guaranteed by our Company. No person has been authorised to give any information or make any representation not contained in the Company's annual and half year reports. Any information given or representation made by any person which is not contained in the Company's annual and half year reports may not be relied upon as being authorised by the Company or any of its subsidiaries or any of their respective employees, officers or agents. The Company's annual and half year reports can be obtained from the Company's investor relations team. This document is subject to all restrictions, limitations, non-warrantee and non-reliance provisions stated in this disclaimer.

This publication contains forward-looking statements and estimates that involve risks and uncertainties. The forward-looking statements and estimates contained herein represent the judgement in good faith of Eurofins Scientific as of the date of publication. These forward-looking statements are not guarantees for future performance and the events discussed in this document may not occur. Eurofins Scientific disclaims any intent or obligation to update all or one of these forward-looking statements and estimates. These forward-looking statements are also subject to change without notice.

To the extent permitted by law, the Company shall not be liable for any loss, damage or expense whatsoever arising out of or in connection with this document, directly or indirectly, including but not limited to, in contract, tort, strict liability or any other legal bases.

This document shall only be distributed as and if permitted by law. By accepting this document, you agree to be bound by the foregoing instructions and limitations.

Until it has been lawfully made public by Eurofins through approved distribution channels, this document contains inside information for the purpose of Regulation (EU) 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, as amended.

Publication date: 26 July 2023, 7:15am CET.

Shareholder information

Listing

Euronext Paris (IPO on 24 October 1997)

Indexes

Euronext Paris: CAC 40, EURONEXT 100, SBF 120, SBF TOP 80 EW, CAC ALL SHARES, CAC ALL-TRADABLE, CAC HEALTH CARE, CAC LARGE 60.

Euronext Amsterdam: EN CORE E100 EW, EN EUR N100 EW, EN EUROZONE 150 EW, EN EUROPE 500, EN EUROZONE 300, EN EZ 100 ESG.

Other: MSCI Europe, STOXX Europe 600, S&P Europe 350.

Industry Group/Prime Sector

Healthcare / Healthcare Providers

Codes

ISIN: FR0014000MR3

Tickers

Paris: Euronext ERF, Reuters EUFI.PA, Bloomberg ERF FP

Nominal Capital (as at 30 June 2023)

€1,929,783.83 (192,978,383 x €0.01)

Simplified Ownership Structure

Free Float 66.9%

Martin Family 32.7%

H1 2023 Share Price Development

Eurofins Scientific: -13.3%

CAC 40 Index: 14.3%

Euronext 100: 11.5%

SBF 120: 13.3%

Nasdaq Composite Index: 31.0%

S&P 500: 15.9%

Dow Jones: 3.8%

Analyst Coverage
AlphaValue	Nupur Gupta
Barclays	James Rose
Bernstein	Harry Martin
Citi	Arthur Truslove
Deutsche Bank	Dominic Edridge
Exane	Tom Burlton
Gilbert Dupont	Guillaume Cuvillier
Goldman Sachs	Suhasini Varanasi
HSBC	Rajesh Kumar
Jefferies	Allen Wells
Kepler Cheuvreux	Pablo Cuadrado
Morgan Stanley	Annelies Vermeulen
Morningstar	Julie Utterback
ODDO BHF	Geoffroy Michalet
Redburn	Neil Tyler
Société Générale	Delphine Le Louët
Stifel	Louise Boyer Gräbeldinger
Investor Relations
Eurofins Scientific Group
Phone: [phone]
E-mail:[e-mail]
Website
www.eurofins.com

2

Table of Contents

Management Report	4
1	CEO Review	5
2	Financial and Operating Review	8
Corporate Governance	19
1	Corporate Governance (update)	20
2	Corporate Governance changes for the six months ended 30 June 2023	20
3	Statement of Persons Responsible for the Half Year Report	23
Half Year Financial Statements	24
1	Unaudited Interim Condensed Consolidated Financial Statements for the period ended 30 June 2023..	25
2	Report of the Réviseur D'entreprises Agréé	44

3

Management Report

4

CEO REVIEW

1 CEO Review

Though the global economic outlook remains uncertain due to lingering inflationary pressures, higher interest rates and the ongoing war in Ukraine, Eurofins continued to demonstrate robust organic growth above its objective in its Core Business activities in the first half of 2023. Growth was particularly strong in North America, where demand trends in our Food Testing, Environment Testing and BioPharma Product Testing activities more than compensated for the substantial year-on-year decline in revenues from COVID-19 testing and reagents in the region. Europe and Rest of the World also demonstrated healthy growth despite challenges in the current economic climate. Pricing initiatives in all regions are starting to be a driver of these results. Overall, we continue to execute well on our long-term value creation strategy while maintaining a sound capital structure.

In the second quarter of 2023, Eurofins has almost fully compensated the temporary revenues from COVID- 19 testing and reagents it achieved between 2020 and 2022 and expects to fully do so on a full year basis as soon as 2024.

Supported by higher volumes, contributions from start-ups and market share gains, and further pricing adaptations, we anticipate sustaining our strong organic growth momentum through the second half of 2023. We will also keep accelerating our efforts in technological innovation, in particular the roll-out of automation systems and further digitalisation of processes in the coming quarters, so we can further improve on our industry-leading service quality to clients. Increasing automation also complements other cost efficiency efforts that are underway to improve our competitiveness.

Despite the current challenges, I remain very confident in the entrepreneurial and innovative spirit of Eurofins teams to continue delivering outstanding, high-quality service to clients, above-market growth and value creation as we progress towards our FY 2023 and FY 2027 objectives.

Financial highlights

Eurofins continued to demonstrate robust Core Business organic growth in H1 2023:

• Total revenues of €3,209m declined year-on-year by -5.9%, restrained by the sharp year-on-year decrease in revenues from COVID-19 testing and reagents (less than €20m in H1 2023 vs over €470m in H1 2022) and FX headwinds (-0.5%).
• Revenues in the Core Business (excluding COVID-19 testing and reagent revenues) increased organically13 by +7.0% in H1 2023 vs H1 2022, driven by a strong development in North America. By quarter and adjusted for public working days, organic growth accelerated to 7.5% in Q2 2023 vs 6.6% in Q1 2023.
• Adjusted1 EBITDA3 of €640m (19.9% of revenues) declined vs €829m (24.3% of revenues) in H1
  2022, mostly impacted by the sharp decrease in revenues from COVID-19 testing and reagents and inflationary headwinds.
• Eurofins generated Free Cash Flow before investment in owned sites16 of €125m vs €306m in H1 2022, primarily due to lower EBITDA and continued net capital expenditures geared towards capacity expansion, start-ups and the development of bespoke IT solutions.
• Net Profit7 amounted to €151m.
• Eurofins' balance sheet remains very solid at the end of June 2023:

1. Financial leverage (net debt11 to last 12 months adjusted pro-forma EBITDA) was 1.9x, flat vs the end of 2022 and well within its targeted range of 1.5-2.5x.

1. Eurofins has no major financing requirements until the outstanding €448m senior
   Eurobonds become due on 25 July 2024 and, in addition to a cash position of €682m, has access to over €1bn of committed mid-term(3-5 years) bilateral bank credit lines.

Strategic highlights

Eurofins companies continue to advance on a large number of long-term growth and innovation initiatives:

• The focus has been on reasonably valued smaller bolt-on acquisitions:

1. In H1 2023, Eurofins closed 18 business combinations that generated revenues of about €64m in 2022 at a cost of €83m, reflecting a sales multiple of 1.3x.

5