Coppersmith Presentation to Alere Inc Stockholders slide image

Coppersmith Presentation to Alere Inc Stockholders

PAGE 27 | Health Management: Capital Allocation ▪ The results of Alere's capital allocation in the Health Management division are even worse: > 18 acquisitions totaling over $1.8B, $1.5B in goodwill (written down 92% to $125mm) > 13 acquisitions since organic revenue growth turned negative, 6 acquisitions since the write-downs began > $198mm in capital expenditures so far; $30mm+ in OpEx development of Apollo alone ▪ 3.4x revenue multiple in reported HM deals High of 3.9x, low of 2.6x First 3 acquisitions: 3 months, 3 deals, 3.7x revenue, $1.7B spent Healthways is HM's only public pureplay comparable > 1.0x 5 year average revenue multiple²¹ ▪ Alere's 2012 HM impairment test used a multiple of 0.9x revenue ¹6 I ▪ Alere currently trades at 2.1x consensus forward revenue > Alere's diagnostic peers currently trade at 3.7x consensus forward revenue Health Managment Goodwill $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $0 2007 2008 2009 2010 2010 COPPERSMITH Acquisitions ■Impairments 2011 2011 2012
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