Coppersmith Presentation to Alere Inc Stockholders
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Coppersmith's Plan: Quantified Improvement, Near-Term Accountability
We believe Coppersmith's plan would help build an Alere that is closer to the stockholders' desires
▪ A streamlined, focused POC diagnostics company with leading cardio and infectious disease franchises and:
> Mid to high-single digit organic growth rates with double-digit earnings growth
> EBITDA margins of 27-30% (inline with peer average of 29%), even without Toxicology 20
> Dry powder to do synergistic, accretive acquisitions in core markets to accelerate revenue and earnings growth
▪ We believe that if a strategic plan like Coppersmith's were successfully implemented, Alere could potentially be valued at:
> 10-11x forward EBITDA vs. its present 9.7x forward EBITDA a discount to the 13.5x average multiple of its peers 2⁰
> 17-19x forward P/E vs. its present 11.2x forward EPS - a discount to the 23.0x average forward P/E of its peers20
(dollars in millions)
Core Diagnostic 2014E EBITDA
Cost Savings
Pro Forma EBITDA
EBITDA Multiple
Core Diagnostic Value
Estimated Net Debt & Preferred at 12/2013
Equity Value
Implied Value Per Share
Vs. Current Price
Low
406.5
50.0
456.5
10.0x
4,565.4
1,032.8
3,532.5
$42.67
74.2%
High
406.5
100.0
506.5
11.0x
5,571.9
602.1
4,969.8
$57.84
136.1%
COPPERSMITH
Pro Forma 2014 EPS
P/E Multiple
Implied Value Per Share
Vs. Current Price
Low
$2.50
17.0x
$42.50
73.5%
High
$3.00
19.0x
$57.00
132.7%
If not, we firmly believe the new Alere would be highly attractive to strategic and financial
acquirors, at similar valuation or greaterView entire presentation