Good day and welcome to the bioMérieux Half Year 2021 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Franck Admant. Please go ahead, sir. Thank you, Anita. Good day, everyone, and thank you for joining the review performance of bioMérieux, our half year performance. Before giving the floor to Alexandre Mérieux, Chairman and CEO, and Guillaume Bouhours, CFO, I will just make a very short introduction to provide you with a couple of information. First of all, our press release was released this morning at 7:00 A.M. This press release can be found on our investor section of our website. Promptly after the end of the meeting, the webcast, the slides, and the call will be available in replay on our website. Now going to the presentation contents. After reviewing the performance of the six months of 2021, we will hold the Q&A session. Questions can come from the conference call and from the chat of the webcast. If you wish to ask a question, please make sure to identify yourself, name and company. A very last word concerning the presentation. Starting with the presentation, we have the usual disclaimer. I recommend you to take a note of its contents that reminds the usual disclaimer about the forward-looking statements you can see on the first slide display on the screen. Now, I hand the call over to Alexandre Mérieux. Thank you. Thank you, Franck. Good afternoon. Good day to everyone. Thank you for joining this webcast dedicated to our H1 results that we announced this morning. I will start directly with the performance of bioMérieux in H1. I believe it has been a solid performance. When you look at the sales, we have been in line with what we have announced, showing an organic growth of +12%. Also important to notice a very nice improvement of the profitability of the contributed EBITDA showing being close to 44%. 24%. 24%, yeah Also worth noticing that the seed of free cash flow and the leverage of bioMérieux is almost a debt-free company. When we look more into around the business trend, you can see that in Molecular Biology, we had two different parts of the year because of thanks to the vaccination success in the U.S., we saw less demand for RP panels in the U.S. in Q2, even if the signals, I would say, are start to be back to stronger demand. Microbiology performed very well, thanks for immunoassays, I would say, and the LCA business. If you look at BioFire, as I mentioned, now our install base is important. We have more than 20,000 units sold and placed and installed worldwide. What we saw in H1, same, contrasting between Q1 and Q2, is a growth of 7% in H1. We're also seeing that the non-RP panels are now back to ratio, growing at 30% and being now 34% of the total sales of the FilmArray panels. This first half of the year also has been quite rich in term of launching of new products, new systems. In microbiology, we see marked our new mass spectrometry platform called VITEK MS PRIME, which is under controlled launch. We have also recently signed a co-distribution agreement with the company Specific Diagnostics for the European market in the field of rapid AST. Molecular, BioFire, everybody was in EUA before. BioFire was the first one to be de novo approved panel. Now we also recently launched an epidemiology solution with EPISEQ SARS-CoV-2 for the detection of the variants. Immunoassay, we've been quite busy and successful launching new parameters on the VIDAS range. We started with VIDAS NEPHROCHECK for acute kidney injury. We also launched VIDAS TB-IGRA for detection of latent TB, as well as VIDAS DENGUE also, which is an important arbovirus. If I come back on microbiology, in H1, +13% organic sales growth. We are better under the term of growth, growing better under the pre-pandemic level. This performance was led by automated ID/AST, blood culture, especially in North America and Asia-Pac. As I mentioned, control for the VITEK MS PRIME, which is very nice proprietary on a different genetic platform for the identification of bacteria. Immunoassay, strong momentum with close to 30% organic sales growth. The growth was fueled also by the base effect, going back to better, I would say, clinical and business condition in Q2, but also fueled by our COVID-19 related parameters, such, of course, as the SARS-CoV-2 test, but also parameters such as D-dimer and troponin. Good launches of our solution, as I mentioned, and also a good pipeline. We have announced the acquisition of a company, Banyan. We had a partnership and investment in this company. This is the company having the marker for traumatic brain injury. One reserve is maybe the trend around PCT, which continues to be under pressure in the U.S., both in term of volume and ASP. Industrial application, performing very well at a 17% growth in H1. I would say it's maybe more than a recovery with stronger growth both in systems and reagents. We see this growth both in food and biopharma applications. With this short introduction, I will now leave the floor to Guillaume Bouhours for the financial results for H1. Thank you, Alexandre. Hello, everyone. You have here a full view of the H1 sales by range. Alexandre already commented and gave you some color on the industry, on immunoassay and microbiology. Molecular, just to mention that we have BioFire at +7%, the whole molecular range is at +3%. The other molecular decreased, based on the super high level of 2020 and coming back more closer to their pre-pandemic level on other molecular. I think for the rest, we have already commented. A bit more details on the BioFire on some elements. You see here the install base that grew from about 10,000-20,000 in a span of 18 months. Pretty strong extraordinary increase. In the first semester, the 2,800 additional net units, we have about 60% in the U.S. and 40% outside of the U.S. As you can see, a big majority were actually sold systems. Interesting to know that in the U.S., 40% of H1 installations were with new customers, so still gaining new customers even in the U.S., and of course, a lot outside of the U.S. We wanted to show you a bit of the monthly trend at the bottom of this page. The way to read it is that you have the monthly respiratory panel sales in the U.S., in green for 2021 and in white for 2020. You see, of course, in green what we have discussed together quite a lot, which was the pretty strong decrease of demand back in March that we discussed together in April, from the January, February levels. The second element is that the demand stabilized from the March level. You can see that April, May, June are somehow equal to March level on a monthly basis. As Alexandre Mérieux said, we can also share with you, and I think it's been widely commented as well, that U.S. testing is going back up again since maybe six weeks or so. Hospitalization rates back up again also in the U.S. We have seen, as a consequence, recently, but a clear ramp-up of demand end of July and August for respiratory panels in the U.S. Moving to our sales by geography. America is still, of course, our first region overall, with 46% of sales. The 5% growth is a bit contrasted between very positive from the performance of microbiology industry, non-respiratory BioFire panels growing fast. Also a very good dynamic of Latin America. Of course, some less positive, the slowdown of respiratory, which I just commented in details, but also as Alexandre mentioned, competitive pressure on our procalcitonin VIDAS assay in the U.S. EMEA, very strong, 18% growth. Of course, very strong, but on the low comp basis for Q2 last year on the non-BioFire ranges. Very solid in all key ranges on BioFire, on the other ranges. Third one is Asia Pacific. Also a very strong growth at +25%, strong momentum. Also of a recovery from a low comp last year. Especially strong, if we can mention, in India. We have good positioning of VIDAS immunoassay business in India that was very much used for the diagnosis of COVID-related patients in the first six months. As well, also to mention a pretty big success of BioFire in Japan, becoming one of our big country outside of the U.S. now for this range. Moving to the global sales, you see here the bridge. We've already discussed +12% organic. The total reported is +6.6% with, let's say, the usual FX impacts. U.S. dollar was moving quite a lot compared to last year H1, and also some devaluations, especially Latin America, of currencies. We can comment on the profit and loss. Again, the way to read is that you have the comparable like-for-like change on the last column. The +12% for sales translated into +18% for gross profits. You see that gross profit improved from 55.3% last year to 58% in H1 this year, thanks to a positive mix effect, as well as, of course, higher volume and the related effect on the gross margin. Before commenting on SG&A and R&D, just taking a step back together to remind everyone that we have this phantom shares plans that most of you know very well. These were bonus plans for retention purpose for our U.S. teams, put in place three, four years ago, that were indexed, paid in cash, but indexed to the bioMérieux share price. Quite some volatility depending on the share price change in our P&L. For this phantom shares, we had a EUR 42 million expense in H1 2020, coming down to only a EUR 2 million expense in H1 this year. Big improvement. To mention that they are now over, meaning that we have, let's say, settled and paid the last tranche of phantom shares to our U.S. teams in April. These elements are actually split in the different functions, you have some in sales and marketing, in G&A, in R&D. That also is important when we look at our different lines. Commenting now on SG&A, you see a +3% increase on a like-for-like basis, which actually includes lower phantom share expense, as I just mentioned. On the opposite, pretty important expense for our employee ownership plan, called MyShare, that we do every two year. That was a big success this year, a EUR 10 million expense in our P&L in H1. I want to mention that these levels of SG&A are very low, in terms of travel, very low in terms of marketing, congress spend, of course, and not at recurring levels. R&D seems to be at -6% on a like-for-like basis, but again, includes this decrease of PSOP expense, that was also, of course, for R&D teams. If we take out this phantom share effect, R&D expenses are actually stable year on year. As Alexandre already presented, contributed operating income EUR 374, almost 24% of sales. Record level up 59% versus last year. Moving now below a bit, we have our usual BioFire acquisition-related costs, so the amortization of intangible assets linked to the acquisition, flat. Flat apart from currency impact. Important to note, a pretty significant reduction in our net financial expense. You see moving from -EUR 13 to -EUR 7 for H1. This is linked to lower debt level. We will see that in a minute with the cash flow. Also a lower cost of debt thanks to a good, let's say, successful refinancing of some of our debt, last year in June 2020, where we see now the results. Income tax at 23% effective tax rate. No major exceptionals. Just comment that we have an uncertainty, like a lot of companies present in the U.S., looking forward based on the U.S. tax reforms terms and timing, that could come later. Overall net income at EUR 277 million, up 60% year-on-year. I propose that we move to the cash flow statement. In line with EBIT that I just commented, EBITDA is significantly up. We have a working capital consumption this H1 of EUR 86 million, sorry. A significant part is from inventory. Just to remind everyone, BioFire range was under allocation or backorder back in December, so of course, very low inventory. We came out of backorder in March, which meant we were able to rebuild our inventory of finished products and equipment, which is good news in terms of serving our customers. Payables and receivables moved, let's say, in line with the activity. In the social and tax debts, we have a pretty significant impact, some that are very recurring, the seasonality of yearly bonus payments, yearly profit-sharing payments. Another one, which is more one-off, which is this phantom share last tranche payout to our U.S. teams for EUR 35 million in April out of this amount. Capital expenditure to comment is 9% of sales, a bit up compared to last year with, among others, some capacity investments in our facilities and plants in Salt Lake City, as well as automation for BioFire and also in China, plants in Suzhou. Overall, a free cash flow of EUR 145 million, exactly in line with last year, but at a high level, actually. That helped to decrease again the debt position to EUR 32 million debt. Almost neutral. That includes EUR 100 million of IFRS 16 lease debt. With that, I hand over back to Alexandre on the outlook. Thank you, Guillaume. I would say that based on this solid performance that we made in H1, based also on the current dynamics, and even if, as you say, it's evolving on sometimes unpredictable environment linked to COVID, now we can really confirm, I would say, our objectives are for the year to be a total sales growth between 4% to around 5%. Also that the CEBIT should be in line with last year performance. With this being said, if this is okay with you, we can start with the Q&A session. Thank you. Anita? Yeah. Thank you. We'll take our first question from Maja Pataki with Kepler Cheuvreux. Please go ahead. Good afternoon. Thanks for taking my questions. I would like to start with three. The first one, apologies if I have missed that, Alexandre Mérieux, could you give us an indication of the percentage of respiratory of BioFire in the U.S. and out of the U.S.? The slides were moving too fast, I couldn't really follow track if you have given that. My second question is, given the many dynamics that we're seeing in your immunoassay portfolio, can you remind us how big the U.S. PCT market is as a% of immunoassay sales? Just give us a rough idea of how much it is. The last question is with regards to your balance sheet and your appetite for acquisitions. Is that something that has gotten increased attention again from the company, or is that something where you take a very pragmatic approach, saying, "If something comes along, we'll take it; if not, we're fine the way we are"? Thank you. Okay. Thank you. I will take your question in the order. We'll start with the last one. Balance sheet, yes, as we said, we are a debt-free company. I would say it gives us a room of maneuver. We'll be when, I don't know if it will be pragmatic, but we'll be strategic. What is of interest for us, it's everything which is into technologies and which can have an impact for the benefit of the patient or for the consumers, looking at the industrial applications. We remain active in that space and following our strategy around medical value differentiation. We stay active on this front in terms of scrutiny and on screening. I would take your first question. I'm not sure I have the answer. It's the split mainly for the U.S. What I've shown on the side that we see an increase of non-RP in H1. 30% of the VIDAS is non-RP. The international split for FilmArray, it's 70% U.S., 30% outside of the U.S. More specifically for the U.S., actually, was your question. I'm not sure I have the answer, but maybe Guillaume, you have it. Therefore, we don't enter into the cross, let's say, details. Again, 34% non-RP in H1, and as Alexandre exactly said, 30, 70 for U.S., non-U.S., which is actually a pretty high level for the non-U.S., probably the highest in some years. The last one was PCT. The last question was on PCT. On immuno, what I can say that PCT is about overall 30% of the VIDAS business. I don't think we enter in the details of the U.S. part, but you know the share of U.S., and of course in PCT, it's a bit higher than our global share of U.S. Okay. Thank you for that. Thank you. We'll take our next question from Michael Jüngling with Morgan Stanley. Please go ahead. Great. Thank you very much for taking my questions. I have a few, please, hopefully this is okay? Firstly, when it comes to BioFire, you mentioned that the non-respiratory panels continued to accelerate growth in the quarter. Can you comment on whether this is very much an impact from the vaccination effect, people going back to normal ways of testing, or is there a definitive trend where customers are trying to fill the void of COVID testing and therefore trying to drive the utilization of the machine to a higher level? That would be interesting. Secondly, on Luminex, do you have a feeling about their masking technology helping to reduce lab costs? Is this something that you would like to introduce in your offering? Thirdly, on gross margin of 58% in the first half, seriously impressive. What do you think is the likely scenario in the second half? Is 58% margin too high? What are some of the puts and takes that would prevent you from getting a margin close to 58% or so in the second half? Thank you. Okay. I will take your first question. The fact that we saw an increase on the non-RP Panel in Q2 is a signal that the vaccination campaign worked, in fact, and that maybe also that there is more than one virus circulating. It's true that people, I believe, went back also to hospitals without being only COVID. I think it's a good trend. It was maybe a more normalized trend as we do see that in Q2. Your question on Luminex, who has a masking approach. No, that's not something we want to do or we want to promote. The beauty of the FilmArray is to offer this exhaustive view, and we believe the full syndromic approach is the one with the best possible benefit for the patients. I don't see why we would not provide the relevant information if it is available. The last question. Yeah, on the last question, thank you for the question on gross margin. As you see, we guide on the contributive EBIT. We don't guide line by line, yet I can make a few comments. The gross margin is very, of course, pretty dependent on the product mix. Obviously, we have slightly different levels of margins by product range. We don't give the exact figures, as we usually say, BioFire and VIDAS are actually among the highest in gross margin. You see that these are also the two that are pretty dependent and evolving fast, linked to COVID. It's difficult to predict if those are going to be accelerating or decelerating fast. It changes almost from one month to the next. Highly dependent on product mix in H2. Okay. Can I please follow up on the masking technology? I appreciate that the whole idea is to provide as much information as possible, but if the lab operator would like to have masking, is it not their choice if they want to invoke it or not? I mean, provide them with the flexibility. Is it not something that could potentially be detrimental to your offering if you did not have it? I don't think so. I think the beauty and the value of FilmArray, that this exhaustive approach and why not giving the full information if we have it? It would be that choice. I believe the technology of FilmArray is meant to provide comprehensive and relevant information. This is what we defend. Okay. Thank you so much. Thank you. We'll take our next question from Hugo Solvet with BNP Paribas. Please go ahead. Hi. Hello. Thanks for taking the questions. First, on the TB tests that you have launched in Europe earlier this year, can you maybe share with us some feedback that you're getting in the control launch phase you're in? Second, a quick follow-up on the gross margins, in H1, can you give us a sense of the evolution of the gross margin in Q1 and Q2? I know you don't usually get into that much details, but that would help us understand the evolution for H2 and maybe how much of the gains that you have had in H1 you think are sustainable into next year. Lastly, on the CapEx in China, can you remember us, please, what projects these are linked to? Thank you. Okay. I can take a few. I can take the last one. CapEx in China, I think this is linked to our projects. Know that a long time our strategy is to be more Chinese in China. We have a manufacturing and R&D project in China, two of them are in Suzhou. One is related to Hybiome, production of immunoassay, and the second one is linked to the production of culture bottles in China. These are the two main projects that we have there. Your first question on TB, Hybiome. Yeah, which is something else. Not first, as I say, it's a CE mark and it's control launch, but I know for first good feedback, I would say the key features around the test time. It's around the first performance and the second one's around the automation. First good feedback on this initial launch, same good feedback also on the VITEK MS for the controlled launch. On the growth margin, as you said, Hugo, we don't enter into the details of margin Q1, Q2. There's no big swing, I would say. If that was probably your concern. Yeah. No. Okay. Thank you very much. One quick follow-up, if I may, on the instrument placement slowing down sequentially and coming back to pre-COVID level. Any other factors we should have in mind aside from hospitals and your clients having already bought a lot of instrument last year? No. As you exactly said, it's a level that is similar to the levels of quarterly new installations that we had pre-COVID, which is a good level. Don't think that there is any obvious effect at this stage to highlight. No. Okay. Thank you very much. Thank you. We'll take our next question from Delphine Le Louët with Société Générale. Please go ahead. Hi. Thank you. A quick follow-up on this one regarding BioFire installation. When I look at historical pricing and revenue for BioFire, we were running in a range of EUR 65,000-EUR 72,000 or euro equivalent on a yearly basis. We have a clear rupture here in H1. I try to understand, what's the pricing issue on the back, if there is any more comment to have? Is it depending on the panel sold? Can you elaborate a bit more on what we should keep in mind regarding the pricing on the various panel? Any comment would be very appreciable. Regarding industrial application, again, it's growing largely above a simple V-shaped recovery. Any comments? What's new? How we should look forward? We have a very favorable comparable base in H2 coming up. Can we get any comments on this one? Alexandre, you rapidly mentioned your positive feedback regarding VITEK MS. Can you say a bit more regarding the launch and client perception? Thank you. Okay. VITEK MS early out has had a control launch at this stage, which goes well. What can I tell you on VITEK MS, that it's now a proprietary platform. It's important. We made a few nice improvements in terms of features. I would say the database, I would say the time to result, serviceability also around the instrument. It's benched up also. This is, I would say, early days are quite promising. These are early days. Regarding industry certification, we see a base effect, a positive one maybe on the food side compared to Q2 last year, where all restaurants and food service chains were closed. Still, pharma is still doing very well. No, the trend, I would say the trend is good. There is some base effect, I believe, on the food side, but pharma, I believe, I don't remember all the figures, but last year was also a good year for pharma. We are well-positioned on the pharma industry with the quality control and also there are many new biotech companies and maybe more vaccines also being produced. I think this is a good trend on the certification. First question around value for you. Yeah. Sorry, the first question, we are not sure we understood. Pricing, we can comment that there is no significant change or move on our average selling price of the reagents. We are not sure exactly of your analysis. Regarding the instrument? Yeah, regarding the instrument pricing, how is the breakdown? No change there. As I mentioned, 80% was sold in H1 and 20% placement, which of course is maybe to be factored in your model, I'm not sure. No significant change or no issue, which was your question. Yeah. Okay. Thank you. Thank you. We'll take our next question from Peter Welford with Jefferies. Please go ahead. Hi. Thanks for taking my questions. A few. First of all, just sticking with the pricing theme. Appreciate that there's not been any significant change so far. Can I just ask if you're hearing any early signs with regards to your negotiations with hospitals at the moment for future contracts going into the winter months? Are you seeing any signs of any increased competitive presence and pricing impact there? Are discussions very much focused still on the properties of the instrument and the relative menus, and really price is not yet a factor for any of the discussions that you're having with customers? Secondly, just curious on your views for the current wave of COVID on the low-plex versus multiplex split. I think obviously, there was a high demand for all sort of methodologies during the last wave. Now that capacities have increased across the spectrum, what are you seeing at the moment with regards to which customers are using a low-plex versus a multiplex approach over the recent weeks for COVID testing? Thirdly, just on OpEx, I wonder if you could just talk a little bit about what potential costs were avoided in the first half due to COVID. I'm just thinking given the contributed EBIT outlook is reiterated despite the strong margin in the first half. Are there factors we should be considering with regards to costs in the second half, that perhaps were mitigated in the first half as now that the world is coming back to normal, or new normal? Finally, I wondered if you could give us some sort of visibility on the overall COVID-related, I appreciate it's a difficult concept, but overall COVID-related sales for bioMérieux in the first half. A number of your competitors talk about non-COVID and COVID sales. Perhaps otherwise, could you perhaps give us some insight into what your immunoassay COVID sales were in that line, if possible? You mentioned a number of the COVID-related products that you have within immunoassays. Thank you. It's a good list of question. Guillaume, if you want, if you could. Maybe if I start with the OpEx, in new order. Yeah, your question is about cost avoided in H1. The nature of cost avoided is around, of course, travel costs. Marketing also, meaning marketing, promotion, congress costs, so quite a lot in sales and marketing. It's really significant cost savings. Probably several tens of millions in the different lines of the P&Ls, compared to what would be a non-COVID. Not compared to last year, because last year was also very big savings for the same reason. I hope that answers your question. Of course, question mark for H2. There are some countries, regions where we can start, at least in the U.S., of course, but even in Africa, in other regions, we can start to re-travel, to re-see our customers, to have these kind of activities that will drive, of course, higher costs, but for growth. Your last question was on COVID-related sales. It's a bit tricky for us, and that's why we don't actually follow COVID-related sales or report it that way. I'm going to explain why. Again, there are two examples, immunoassay and BioFire. On BioFire, BIOFIRE RP2.1, as you know, is a test for 27 pathogens, of which COVID is one. Of course, it existed before COVID with BIOFIRE RP2, which was a huge sale. In a way, of course, it's COVID-related, but it's not all COVID. It will not disappear in any way. Even if COVID was to, which is not realistic, of course, disappear tomorrow. Second example is on immunoassays. We have about 55% of our sales on high medical value, which includes, in this category for us, procalcitonin, of course, dedicated to COVID SARS-CoV-2 serology. Some parameters that Alexandre mentioned are used for COVID patients diagnostics or for monitoring, like D-dimer for thrombosis or ferritin. A bit of the same, meaning that a number of these are COVID-related, except the pure SARS-CoV-2 serology, they are not totally linked to COVID. They are also treating other emergency patients. They were before, they are continuing to. The baseline is not so obvious to measure. I hope it answers your question, even though it's not exactly a percentage like some of our competitors do. We don't have a low-plex single test for COVID or antigen for COVID that, in this case, would be exactly COVID-related sales. COVID low and multiplex split, I must say, is difficult. There is no follow-up in the industry. Did you have a view, Alexandre? No. As we said, there is room for single plex, for low-plex, and for syndromic. Basically, what we currently see in the U.S. is the rate of physician increasing and the demand for BioFire increasing. We believe there's a market for everything, but it's a few more ways, but also well adapted to the situation and also to the medical relevant situations. What was the first question that I missed? First question was on pricing. Do we have advanced signals of negotiation with hospital, increased competition? We mentioned increased competition, but it's not new at all. On PCT, a bit stronger than last year, we must say, on volume and price in the U.S., of course. PCT in the U.S. Apart from that, most of the ranges, there's no change. Regarding FilmArray, no significance or no speed change. We know the competitors that we had before are still there and now part of bigger group, but we don't see an acceleration of the pressure there. There is also a question, written question. Maybe I can read it or you can read it. Yes. Have you seen any increase in returns of BioFire instruments as vaccination rates have turned higher? No, not to my knowledge. We lose some customer, but I would say overall, net-net, we continue to gain more customers than we potentially lose, even in the U.S. itself. That's a normal trend. Positive. For the Joint Infection. Let's take the question and we'll read them. Okay. Do we have more questions for me? Anita, go ahead. Thank you. We'll take our next question from Scott Bardo with Berenberg. Please go ahead. Yeah. Thanks so much for taking my questions. The first question, a very specific technical one, please. Could you please quantify what BioFire sales were for Q2? And also give us the revenue number, please, for the comparable year. I know that was a bit of a funny year because you had that sort of defense contract. I'd just like to understand actually what your sales were, because I think you haven't explicitly pulled it out, or sorry if I've missed that. The second question, please, just relates to some of your assumptions underpinning your full year guidance this year. I think you note a trend of increasing demand for respiratory panels amid this escalating COVID crisis. Would you say you have factored that uptick in within your reiterated sales guidance or not? I pause there if possible. Thank you. Quantification of value for your sales Q2 this year compared to Q2 last year. That is the first question. Yes. I'm not sure it's relevant because Q2 2020, we had not fully launched our solution with COVID-19. I'm not sure about the relevance of doing this, but we have the numbers. It was EUR 180 million in Q2. Yeah, EUR 180 million in Q2. EUR 180 million Q2. Okay. This quarter? Yeah. Okay, thank you. The question then about what is embedded within your reiterated guidance, your sort of COVID assumption, if you like, given this current dynamic? What we do, we look at the H1 result and the current dynamic. It's quite difficult now to predict what will happen next. I would say at this stage, this is the guidance we are comfortable with. I don't think I can say more at this stage. Yeah. As you've seen with the range that is a bit wide, that corresponds to the evolving situation. Again, as we mentioned, pretty good signals up in July, August, but as we have seen earlier this year, it can also go in the other direction very fast. Yeah. No, I understand. Sorry, Scott. The EUR 180 million was reagents only. If you want with everything, it's EUR 194 million, including equipment and everything. Very good. Thank you. Yeah. Thank you. The nature of the guidance question was this really, you've made the observation that COVID is at least starting to surge again and lead to extra demand. I just wanted to understand whether it would be a wrong conclusion that, were it not for this Delta variant, you wouldn't have achieved this current revenue guidance, 0%-5%. Is the COVID spike helping you obtain your guidance? Or do you see this sort of upside to your previously communicated guidance before Delta? Let's say our guidance is between 0%-5%. It's also quite a room of maneuver. I think this is important because there is a volatility here on the today. It's quite sad to say that the trend is good because it means that situation is not good on a statutory front. We don't know for sure what to expect in the weeks or the months to come. That's the best guidance or the most realistic guidance we can give you at this stage. No, understood. Thank you. Just maybe last one on guidance before I jump back in the queue. Obviously, you've seen excellent margins in H1, 23.8%. If my calculations are correct, your reiterated guidance implies 15.5% margin in H2 on the contributive EBIT level, which is obviously a very sharp contraction indeed from what we've just witnessed. I guess the nature of the question again, is this a degree of conservatism? If not, what better informs next year or indeed the future of bioMérieux? Is it the 15.5% or is it the 23.8%? Thank you. Thank you, Scott. We won't give guidance on next year. As you know, it's not at all our habit, and it's even more difficult in this current fast evolving environment. Your comment on H2 is, of course, very relevant. Just to mention that, of course, the range of sales is a key element that can make the difference on the percentage as well between the top and the bottom of our guidance. We also have usually accelerated spend in some areas in our company. Typically, R&D spend tends to accelerate in the second half for internal reasons. The third element, which I mentioned earlier, with I think Peter's question, is that we had a lot of course, huge cost avoidance in H1 as well as last year. They are restarting activities now in some region, in some countries, as I said earlier, be it travel, but be it also sales and marketing activities or customer-facing activities that we were not able to do earlier. Yeah. Maybe final point is also depending on the performance, there is also the adjustment in H2, usually of all the performance-related compensation, be it sales commission and everything. Yeah, that's very clear. It sounds to me through your description that the H2 margin is more normalized or more representative. Would you agree with that? What I would agree with is that the H1 margins are not normalized at all. I said that when I highlighted that the SG&A on a very low basis, which are not recurring because we still have embedded high savings that we don't intend actually to sustain in the medium run. It's another way to say it quite similar that at least the 24% is not normalized for sure. Great. Thanks, guys. Thank you. We have a written question. Give me one second. Okay. Sorry. Just read the written question. We have a question from Jacob Peery from Evercore regarding Cepheid and GeneXpert success in Q1 and Q2, and do we think that low-plex solutions will continue to take some share from higher target multiplex this flu season? QIAGEN has planned to launch a low-plex panel on their QIAstat-Dx. Would you ever do the same? Difficult for me to comment on the competition. I think what I said, I think there is room for single plex, for low-plex, and for multiplex. We will remain with the FilmArray on the multiplex front, because it's a better way to serve the technology, and it's a better way to serve the patient in our view. I think there is room for everyone on what we mentioned, just what we see on this, and there is also a demand for syndromic. Second one on pneumonia panels. To be frank, I'm not sure I have the answer on this one. Guillaume, you have. Just to mention that, yes, pneumonia, very good growth actually, in line or above the non-RP growth that Alexandre mentioned. 30% plus, which is continuing to develop as a strong medical added value panel in our range. Linked to that, there was a question on the FDA approval for joint infection, it's called now, the new panel. We can just say that it's under FDA filing and we would not want to comment on the timing that the FDA will need to go to approval. No concern. It's under FDA review. Okay. Another question, in the light of this ratio of BioFire sales, have you implemented any cost saving measures? No, we are monitoring. We are working in a pragmatic way, so we do, I would say nothing specific to report. We don't put the long term in danger, and we are pleased. Again, BioFire is not a solution only for COVID. It's a solution for respiratory disease, and we have many, many more panels. We will keep on investing in this range, both in our R&D and manufacturing. We operate the company in a way, the nice proper way and a professional way. Other question is what success have you achieved, if any, trying to get customer-related BioFire for RP to purchase non-RP panels? Yes, it's going in right direction. Until recently, the market was only around COVID and respiratory. The nature of the game for us is to increase the X number of panels, and it goes in the right direction. We can mention, you remember that our KPI is more on the customers that actually consume one panel versus the consumers that are two and more, so multi-panel consumers or buyers, I should say. This percentage of multi-panel customers increased from 53% last year to 56% in H1. I would say it's a factual measure of what Alexandre just mentioned, and it's clearly part of our strategy. Last written question, maybe if you can read. The last written question is that we have not increased our guidance despite much better than expected H1 results. Does it mean that we expect a worse performance in H2? Again, I think I already answered, especially when answering to Scott on the different elements, be it the sales volume and range for the H2 accelerated spend, especially in R&D, but not only, and restarting customer-facing activities. Let's come back, Anita, to any questions over the phone. Thank you, sir. Yes, once again, if you would like to ask a question, please press star one. We have a follow-up question from Maja Pataki with Kepler Cheuvreux. Please go ahead. Thank you for taking follow-up questions. I have two, please. Going back to the operational costs that you expect in H2 and going forward, I understand you don't want to give us an indication on how to think about margins going forward. A lot of companies have been revisiting how they're doing marketing events and travel-related costs. Many companies come out saying, "Well, we don't think we're going to go back to where we were pre-COVID. We're actually seeing some structural savings coming through that will be sustainable going forward." Is that something that you're seeing as well, or is your business model just not suited to having some more fancy marketing events? The second question, Alexandre, I was wondering if you could give us some thoughts on the partnership with Specific Diagnostics. I was always under the impression that current available technologies are not really what you are looking for. It'd be good to consolidate why you're doing this exclusive distribution agreement in Europe, and how does that change your view on the long term? Thank you. Good. Thank you. I will take your first question. Like everybody, we're thinking about working a bit differently when it's needed in a marketing approach. This actually, until recently, we've been a bit forced to work like this, there is good into some of the virtual activities or working differently. That we'll keep assessing it. We are like the others, I believe we will adapt our marketing approach and expenses to hopefully post-COVID world. Your second question. Maja, I think now we always said that we were interested for us. We believe there are still lots of unmet needs in the field of microbiology and mainly in the field of fast AMR, antimicrobial resistance. We found in a Specific Diagnostics company, which has an interesting technology, which is clearly addressing this need and to reduce time to results, mainly for sepsis patients, and this is after blood culture identification. The idea to partner with them, because it's a new technology that's recently been CE marked, and the idea is to work with them, help them work the technology, working with KOLs and see if it works well, because they are on the right topic, and it was an interesting technology. I believe we work jointly with them to seize and evaluate the potential of the technology. Thank you. Thank you. We have another follow-up question from Scott Bardo with Berenberg. Please go ahead. Yeah. Thanks very much for taking the follow-ups. Some bigger picture questions for me, please. Alexandre, bioMérieux is a global leader in molecular diagnostics. You serve the market quite heavily then with syndromic testing, which is still a small component of that industry. Could you please share some more strategic thoughts about the necessity or potential to expand into other categories of the molecular diagnostics market, be it lowplex, singleplex, or even indeed how important next-generation sequencing is as a consideration for the company in the future? Big picture question, but I would appreciate. The second question, please. Again, just trying to get some of your industry perspectives please, Alexandre. When I look to the diagnostics industry over this second quarter, a lot of companies have seen robust recovery in their otherwise normal routine businesses. Actually, some of the performances we've seen, by and large, have been relatively strong growth or healthy growth on the 2019 year, an undisrupted 2019 year. Things back to business. When I see bioMérieux's recovery, it's pleasing to see, but it is in a sense just closing the gaps to the absolute levels you already reported, so no growth on an undisrupted number two years ago. I guess my question is there anything peculiar about your end markets, product portfolio, which means that your recovery wouldn't have been more significant than what we've seen this second quarter for your routine business? Thank you for your question, but I'm not sure I agree. I think we are displaying quite good numbers in H1, also mostly seen in Q2 where microbiology we are above pre-pandemic levels. Immunology, that's +30% in H1, industry +17%. I believe these are good ratio and good numbers. I'm not sure who you compare us with. Also to be fair, I think it's a nice recovery, but I believe also that it's more than a recovery. Then again, we have to be prudent because bioMérieux is present in all over the world, and not the whole world is back to a normal situation. Your first question around molecular. Syndromic is a niche, but a nice and a growing niche where we have a leadership positioning, and I believe it will keep on growing. Otherwise, we wouldn't have seen all these movements in terms of acquisitions in the first half of the year. We not only have syndromic, we also have a solution with our ARGENE, which can provide a singleplex testing. We also have the extraction. I think that it will always be interesting to complement the range. So far, with what we have, we are also able to deliver quite a nice growth. I think there is a bright future ahead for the syndromic approach. Yeah, that's very good. Next generation sequencing, sorry, have you any thoughts about the relevance and importance of that within your infection control? NGS, yes, for me, it's interesting. It has the potential to enter into the space of infectious disease. Today, it's mainly for oncology. To enter more widely in the space of infectious disease, I think time to result, cost, and profitability still need to improve. I think it goes in the right direction. Today, the way we see it is mainly for detection of variants, which is a very good use of sequencing. Clearly, sequencing, same as mass spectrometry, it's a technology that is pretty nice to see the potential. I still believe that it's very difficult to predict that the molecular is still a right solution to tackle the current needs of infectious disease testing. Very good. Thank you very much, Alexandre. Thank you. Thank you. It appears that I have no further questions at this time. Mr. Admant, I'd like to turn the call back to you for any additional or closing remarks. I would like to thank you, all everyone, for their participation. Just for your information, our next communication will be on October 21st for the Q3 results. So far, I'm available for any more questions. Thank you all. Have a good day, a good afternoon, good morning. Thank you. Bye-bye. Thank you.