Diasorin — Investor Presentation 2021

Dec 16, 2021

Informazione Regolamentata n. 0957-77-2021		Data/Ora Ricezione 16 Dicembre 2021 22:45:24	Euronext Milan
Societa'	:	DiaSorin
Identificativo Informazione Regolamentata	:	155416
Nome utilizzatore	:	DIASORINN02 - Fava
Tipologia	:	2.2
Data/Ora Ricezione	:	16 Dicembre 2021 22:45:24
Data/Ora Inizio Diffusione presunta	:	16 Dicembre 2021 22:45:26
Oggetto	:	DiaSorin 2022-2025 Strategic Plan: Specialist3
Testo del comunicato

Vedi allegato.

DIASORIN 2022-2025 STRATEGIC PLAN: SPECIALIST³

"The Strategic Plan approved today by the Board of Directors outlines the strategies that will drive the evolution of DiaSorin in the coming years. The completion of current strategic projects and the launch of new initiatives will enable and support growth over the next several years, while also leveraging the new competencies acquired through the acquisition of Luminex", commented Carlo Rosa, CEO of DiaSorin. "In the last two years, the pandemic has redefined the role of diagnostics in public health management and has posed new challenges for national health systems to which DiaSorin intends to respond by strengthening its position as a Specialist ".

GUIDANCE 2022-2025 AT CONSTANT EXCHANGE RATES¹ :

• REVENUE:
  • 2021-2022: EX-COVID REVENUE GROWTH OF APPROX. 24%; APPROX. -2% INCLUDING COVID RELATED REVENUE
  • 2022-2025: EX-COVID REVENUE GROWTH OF 10% CAGR; APPROX. +7% CAGR INCLUDING COVID RELATED REVENUE
• ADJUSTED EBITDA² MARGIN:
  • 2022: APPROX. 35%
  • 2025: APPROX. 38%, IN LINE WITH PRE-PANDEMIC AND PRE-LUMINEX ACQUISITION MARGIN

GROWTH DRIVERS:

• START OF NEW "VALUE BASED CARE" PROGRAMS IN IMMUNODIAGNOSTICS AND FURTHER EXPANSION OF SPECIALTY MENU
• LAUNCH OF NEW MOLECULAR DIAGNOSTIC AND LICENSED TECHNOLOGIES PLATFORMS
• MOLECULAR DIAGNOSTIC AND LICENSED TECHNOLOGIES BUSINESS INTEGRATION
• FURTHER PENETRATION OF THE U.S. MARKET

COST AND REVENUE SYNERGIES GENERATED THROUGH LUMINEX INTEGRATION EQUAL TO APPROX. USD 90 MILLION IN 2025

CUMULATIVE FREE CASH FLOW GENERATION OF APPROX. € 1.1 BILLION IN 2022-2025

SIGNIFICANT REDUCTION OF THE NET DEBT-TO-ADJUSTED EBITDA² RATIO FROM APPROX. 1.9X IN 2021 TO APPROX. 0.5X IN 2025

PROJECT APPROVAL FOR THE REDEFINITION OF THE DIASORIN CORPORATE STRUCTURE

¹ In order to allow comparability across years, all financial data has been restated at constant exchange rate (with regards to the US Dollar 1.16 US\$ per EUR)

² Adjusted EBITDA = EBITDA, excluding extraordinary costs and expenses incurred in the Luminex transaction announced on April 11, 2021

Saluggia, Italy, December 16, 2021 – The Board of Directors of DiaSorin S.p.A. (FTSE MIB: DIA) today:

• Examined and approved the 2022 2025 Business Plan;
• Approved the project for the redefinition of the corporate structure.

The new Business Plan develops along two main pathways: First, the strengthening of DiaSorin's role as a specialty player and second, the launch of new strategic programs, following the recent acquisition of Luminex.

Innovation and the launch of specialty immunodiagnostic and molecular diagnostic tests, together with the launch of new innovative programs across all of DiaSorin's technologies, remain the growth engine of the business and strengthen DiaSorin's positioning as "The Diagnostic Specialist."

Below is an overview of the strategies and programs across DiaSorin's primary technologies.

Immunodiagnostics

• Platforms

Together with the LIAISON® XL platform, which will remain as the core immunodiagnostic platform, DiaSorin will re-launch the LIAISON® XS platform, specifically in the U.S. Hospital setting. Moreover, it will start the project development of a new modular platform that will be able to manage higher testing volumes, the LIAISON® XXL, specifically designed for larger laboratories. Finally, the decentralization trend will be addressed with the already available LIAISON® IQ platform.

• Diagnostic solutions

In continuity with the previous Business Plan strategy, the "Value Based Care" programs are still an engine of growth for DiaSorin. Such programs feature solutions that leverage the use of algorithms and artificial intelligence to provide clinicians with increasingly precise answers, offering prognoses on the patients' clinical evolution. These include the partnership with QIAGEN for the use of the QuantiFERON® technology to diagnose Latent Tuberculosis and Lyme infections, as well as the partnership with MeMed for the innovative test that differentiates bacterial from viral infections.

Molecular Diagnostics

The new strategy with regards to molecular diagnostics includes the launch of three new platforms: the LIAISON® MDX Plus and the LIAISON® Plex, that drive consolidation in the portfolio of single/low plex and multiplex platforms, and the LIAISON® NES, a solution that addresses the growing need for rapid and reliable near patient tests.

LIAISON® MDX Plus: a single/low plex platform whose launch is expected in 2022. Both LIAISON® MDX and ARIES® customers will be progressively converted to the new molecular diagnostic platform that will use the same consumables currently used on the LIAISON® MDX platform.

LIAISON® Plex: the new multiplex platform that will provide an innovative solution to the diagnostic customers currently served by MAGPIX®, Luminex® 100/200 and Verigene® multiplex platforms. The new platform will allow the detection of a significant number of pathogens on a single sample utilizing multiplexing technology, allowing for the immediate diagnosis of patients that show generic symptoms without a clear clinical history or treatment plan.

The platform will feature the cutting-edge flex technology that will offer the option to have access to only a portion of the fullpanel results, thus lowering the testing cost, with the opportunity to unlock additional panel results through the use of credits. The launch of the LIAISON® Plex in markets accepting the CE Mark is expected in 2022, with the launch in the U.S. market following in 2023.

LIAISON® NES: the new Point-of-Care (PoC) platform launch is expected in 2023 and addresses the growing diagnostic decentralization trend that is driving the need for fast and accurate testing with a lab-like quality in near patient settings. The LIAISON® NES will offer high quality, cost effective low-plex testing, generating results in approximately 15 minutes.

Licensed Technologies

Following the acquisition of Luminex, DiaSorin gained access to the xMAP® technology, which can be used in a wide variety of testing applications. Based on proteins and nucleic acids, this technology allows for the simultaneous detection of up to 500 different targets in a single test run. The customers of this technology relevant players in both the life science industry (around

75% of overall volumes of sales) and research centers (the remaining 25% of volume sales), using the xMAP® solution to develop their own products and for research purposes.

The launch of the new xMAP Intelliflex® platform will progressively replace existing Licensed Technologies platforms, together with the strengthening of the existing partnerships and the identification of new business development opportunities, will foster the development of the strategy for this business line.

2022-2025 GROUP FINANCIAL GUIDANCE

The Strategic projects announced above drive the following financial guidance for the period under consideration:

GUIDANCE 2022-2025 AT CONSTANT EXCHANGE RATES¹

2022 Revenue:

• Ex-COVID revenue: approx. +24%;
• Total revenue: approx. -2% (COVID revenues decreasing from approx. € 370 million in 2021 to approx. € 150 million in 2022).

Adjusted EBITDA² Margin 2022: at approx. 35%, as a result of the following:

• Gross Margin dilution due to change in product mix;
• Reduction of COVID volumes;
• First full year inclusive of Luminex;
• Partial achievement of Luminex acquisition synergies.

2022-2025 Revenue:

• Ex-COVID revenue: approx. +10% CAGR;
• Total revenue: approx. +7% CAGR (COVID revenues declining to approx. € 50 million in 2025).

2025 Adjusted EBITDA² Margin: at approx. 38%, in line with the pre-pandemic and pre-Luminex acquisition levels, as a result of:

• Gross Margin improvement from 2022, partially offset by royalties on immunodiagnostic products resulting from strategic partnerships;
• Full realization of cost and revenue synergies, with a relative improvement of the operating leverage as a result of Luminex acquisition;
• Negligible COVID related revenues.

DiaSorin expects approx. US\$ 90 million of combined cost and revenue synergies in 2025, as a result of several projects of rationalization, consolidation and optimization regarding both the operating structure and the production footprint of the Group, together with cross-selling initiatives for DiaSorin products in the U.S. Hospital setting and for Luminex products outside the U.S. market leveraging the Group existing commercial structure.

DiaSorin expects, that the Net Debt-to-Adjusted EBITDA² ratio will be at approx. 1.9x in 2021 and approx. 0.5x in 2025.

Finally, the cumulative 2022 – 2025 Free Cash Flow is expected to be approx. €1.1 billion.

APPROVAL OF THE PROJECT FOR THE REDEFINITION OF THE CORPORATE STRUCTURE OF DIASORIN

The Board of Directors of DiaSorin also approved the project to redefine its corporate structure.

The main objective of the project is to realign the corporate structure consistently with the organizational development and the globalization of the Group. The project will be implemented through the contribution in kind of the business branch of DiaSorin related to the operating activities performed in Italy and in the United Kingdom, the latter through the local branch, (i.e. industrial operations, R&D, commercialization marketing and support activities) in favor of a newly incorporated Italian limited liability company ("società a responsabilità limitata") ("NewCo"), whose share capital will be entirely owned by DiaSorin (the "Contribution"). Once the Contribution is finalized, DiaSorin will continue to define and develop the strategic direction, treasury management and the coordination of the entire Group, while the operating activities currently carried out by the Company in Italy

and in the United Kingdom will be managed by NewCo (coherently with the activities performed by subsidiaries in other countries).

In order to implement the Contribution, an extraordinary shareholders' meeting of NewCo will be convened to resolve upon a share capital increase reserved to the Company, that will entirely subscribe it in its capacity as sole shareholder; at the same time the Company and NewCo will enter into a deed of Contribution.

The Contribution is expected to be finalized within the third quarter of 2022.

Furthermore, please note that pursuant to Art. 6 of CONSOB Regulation n. 17221 of March 12th, 2010, as subsequently amended (the "Related Parties Regulation"), NewCo is a related party of the Company, as its share capital will be fully and directly owned by the Company. However, the Contribution is not subject to the procedures for related parties' transactions as per the exemption provided by Art. 14, paragraph 2, of the Related Parties Regulation and Art. 9.4 of the Procedure for Related Parties Transactions lastly updated by the Board of the Company on May 14th, 2021 and published on DiaSorin corporate website (www.diasoringroup.com, section "Governance"), being NewCo entirely owned by the Company. Therefore, DiaSorin will not publish an information document relating to the Contribution pursuant to Art. 5 of Related Parties Regulation.

INVESTOR DAY: VIDEO STREAMING OF THE STRATEGY PRESENTATION ON DIASORINGROUP.COM WEBSITE

DiaSorin management will present its strategy in a dedicated event starting at 2:00 p.m. CET, 1:00 p.m. GMT, 8:00 a.m. EST on December 17, 2021. The event will be available for video streaming on the Group website at the following link: https://diasoringroup.com/en/investors/investor-day-2021.

The supporting slides will be made available before the beginning of the event at the following link: https://diasoringroup.com/en/investors/financial-corner/presentations and on the authorized storage system named eMarket STORAGE at .

A recording and transcript of the video conference will be made available after the end of the event at the same link of the presentation.

FOR ADDITIONAL INFORMATION, PLEASE CONTACT:

Riccardo Fava Emanuela Salvini Corporate Vice President Communication & Investor Relations Investor Relator Tel: +39.0161.487988 Tel: +39.0161.487567 riccardo.fava@diasorin.it emanuela.salvini@diasorin.it

ABOUT DIASORIN

Headquartered in Italy and listed at the Italian Stock Exchange in the FTSE MIB Index, DiaSorin is a global leader in the In Vitro Diagnostic (IVD) field and is active since 2021 in the Life Science business. For over 50 years, the Company has been developing, producing and marketing reagent kits used by diagnostic laboratories worldwide.

The Group operates in 5 continents through 45 companies, 4 branches, 10 manufacturing facilities and 9 research and development centers. The extensive diagnostic testing and Life Science offer, made available through continuous investments in research, positions DiaSorin as the player with the broadest range of specialty tests available within the diagnostic market, and identifies the Group as the "Diagnostic Specialist".

More info at www.diasoringroup.com