Coppersmith Presentation to Alere Inc Stockholders
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COPPERSMITH
▪ We believe Alere can generate a minimum of $50-$100mm in annual cost savings, with announced targets and milestones
for accountability to stockholders, including sources such as:
Coppersmith's Plan: Operational Rationalization
1. Returning SG&A margin to 2010 levels (FY12 adjusted SG&A margin was 30.4% vs. 28.4% in FY10) would produce
savings of $55mm. Potential steps include:
▪ Further acquisition integration
▪ Re-engineer subscale sales territories
▪ Rationalize IT costs (ERP consolidation, etc.)
■ Evaluate matrix structure to ensure proper
alignment for outcomes and incentives
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2. Restoring 50-100% of the gross margin degradation since 2010 (FY12 adjusted Gross Margin was 53.6% vs. 56.1% in
FY10) would generate $36-$71mm in savings. Potential steps include:
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Consolidate manufacturing facilities (five
disclosed facilities under 65,000 square feet)
▪ Reduce redundant headcount
Explore lower-cost geographies
Increase automation and other yield
improvements
■ Create shared services teams
▪ Relocate support functions to low-cost geographies
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Implement shared materials sourcing initiatives to
generate scale (including internal capacity)
Consolidate toxicology laboratories (eight disclosed labs)View entire presentation