Annual
Report
2024
2
Disclaimer
This document is neither a prospectus for the purposes of Regulation (EU) 2017/1129 or other foreign regulations, nor an official authorised document,
nor a sworn translation thereof and has not been approved, filed or reviewed by any regulatory authority. This document is intended for informational
purposes only and does not constitute or form a part of any offer for sale or subscription or solicitation of any offer to buy or subscribe any securities
of Eurofins Scientific SE (hereinafter the “Company” or “Eurofins Scientific”) nor shall it, or any part of it, form the basis of or be relied upon in
connection with any decision to purchase securities of the Company or enter in any contract with, or commitment to, the Company whatsoever.
The Company has taken reasonable care to ensure that the facts stated in this document are true and accurate in all material respects but makes no
representations or warranties regarding the reliability or absence of material errors or omissions in or from this document. Information contained
herein is based on sources believed to be reliable but is neither exhaustive nor guaranteed by our Company. No person has been authorised to give
any information or make any representation not contained in the Company’s annual and half year reports. Any information given or representation
made by any person which is not contained in the Company’s annual and half year reports may not be relied upon as being authorised by the Company
or any of its subsidiaries or any of their respective employees, officers or agents. The Company’s annual and half year reports can be obtained from
the Company’s investor relations team. This document is subject to all restrictions, limitations, non-warrantee and non-reliance provisions stated in
this disclaimer.
This publication contains forward-looking statements and estimates that involve risks and uncertainties. The forward-looking statements and estimates
contained herein represent the judgement in good faith of Eurofins Scientific as of the date of publication. These forward-looking statements are not
guarantees for future performance and the events discussed in this document may not occur. Eurofins Scientific disclaims any intent or obligation to
update all or one of these forward-looking statements and estimates. These forward-looking statements are also subject to change without notice.
To the extent permitted by law, the Company shall not be liable for any loss, damage or expense whatsoever arising out of or in connection with this
document, directly or indirectly, including but not limited to, in contract, tort, strict liability or any other legal bases.
This document shall only be distributed as and if permitted by law. By accepting this document, you agree to be bound by the foregoing instructions
and limitations.
Until it has been lawfully made public by Eurofins through approved distribution channels, this document contains inside information for the purpose
of Regulation (EU) 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse, as amended.
Publication date: 26 February 2025
Shareholder information
Listing
Euronext Paris (IPO on 24 October 1997)
Indexes
Euronext Paris: CAC 40, EURONEXT 100, SBF 120, SBF TOP 80
EW, CAC ALL SHARES, CAC ALL-TRADABLE, CAC HEALTH
CARE, CAC LARGE 60.
Euronext Amsterdam: EN EUROPE 500, EN EUROZONE 300EN
DEV EU
Other: MSCI Europe, STOXX Europe 600, S&P Europe 350.
Industry Group/Prime Sector
Healthcare / Healthcare Providers
Codes
ISIN: FR0014000MR3
Tickers
Paris: Euronext ERF, Reuters EUFI.PA, Bloomberg ERF FP
Nominal Capital (as at 31 December 2024)
€1,929,811.83 (192,981,183 x €0.01)
Simplified Ownership Structure
Free Float 63.9%
Martin Family 32.9%
2024 Share Price Development
Eurofins Scientific: -17.4%
CAC 40 Index: -2.0%
Euronext 100: +4.2%
SBF 120: -2.3%
Nasdaq Composite Index: +30.8%
S&P 500: +24.0%
Dow Jones: +12.8%
Analyst Coverage
AlphaValue Nupur Gupta
Bank of America Himanshu Agarwal
Barclays James Rose
Berenberg Carl Raynsford
BernsteinSG Delphine Le Louët
BNP Paribas Exane Tom Burlton
CIC Market Solutions Arnaud Cadart
Citi Arthur Truslove
Deutsche Bank Ben Wild
Gilbert Dupont Guillaume Cuvillier
Goldman Sachs Suhasini Varanasi
HSBC Rajesh Kumar
Jefferies Allen Wells
Kepler Cheuvreux Pablo Cuadrado
Morgan Stanley Annelies Vermeulen
Morningstar Jay Lee
ODDO BHF Geoffroy Michalet
Redburn Neil Tyler
Investor Relations
Eurofins Scientific SE
Phone: +32 2 766 1620
E-mail: ir@sc.eurofinseu.com
Website
www.eurofins.com
3
Table of Contents
Disclaimer .................................................................................................................................... 2
Management Report .................................................................................................................... 6
1 CEO Review ................................................................................................................................. 7
2 The Business .............................................................................................................................. 12
2.1 The Eurofins Group ........................................................................................................... 12
2.2 Our Businesses .................................................................................................................. 15
2.3 Our Markets ...................................................................................................................... 20
2.4 Our Business Model .......................................................................................................... 26
2.5 Focus on Scientific Innovation .......................................................................................... 29
3 Financial and Operating Review ............................................................................................... 34
3.1 Business Review ................................................................................................................ 34
3.2 Revenues ........................................................................................................................... 35
3.3 Infrastructure Programme ................................................................................................ 40
3.4 Financial Review ................................................................................................................ 41
3.5 Cash Flow & Financing ...................................................................................................... 43
3.6 Start-up Programme ......................................................................................................... 44
3.7 Acquisitions ....................................................................................................................... 44
3.8 Divestments ...................................................................................................................... 45
3.9 Post-Closing Events ........................................................................................................... 45
3.10 Alternative Performance Measures (APMs) ..................................................................... 46
4 Environmental, Social and Governance .................................................................................... 47
4.1 Introduction ...................................................................................................................... 49
4.2 General Information ......................................................................................................... 53
4.3 Environmental ................................................................................................................... 71
4.4 Social ............................................................................................................................... 103
4.5 Governance ..................................................................................................................... 123
4.6 Data Tables ...................................................................................................................... 148
5 Risk Factors ............................................................................................................................. 162
5.1 Commercial Risks ............................................................................................................ 162
5.2 Financial Risks ................................................................................................................. 168
5.3 Technological Risks ......................................................................................................... 170
4
5.4 Industrial Risks ................................................................................................................ 174
5.5 Other Risks ...................................................................................................................... 177
6 Eurofins Group Remuneration Report 2024 ........................................................................... 181
6.1 A note from the Chair of the Nomination and Remuneration Committee..................... 181
6.2 Key Developments in Remuneration .............................................................................. 183
6.3 Group Remuneration Policy ............................................................................................ 183
6.4 Compensation awarded to the Board of Directors in 2024 ............................................ 193
6.5 Compensation awarded to GOC members in 2024 and 2023 ........................................ 197
6.6 Long-term incentives ...................................................................................................... 204
7 Eurofins Scientific SE, the Group Parent Company ................................................................. 209
8 Corporate Governance ............................................................................................................ 210
Corporate Governance ............................................................................................................. 211
1 Corporate Governance Charter of Eurofins ............................................................................ 212
1.1 Management Structure ................................................................................................... 213
1.2 Shareholder Meetings ..................................................................................................... 224
1.3 Group Remuneration Policy and Group Remuneration Report ...................................... 227
1.4 Share Dealings ................................................................................................................. 227
2 Corporate Governance Statements for the Year Ended on 31 December 2024 .................... 229
2.1 Management ................................................................................................................... 229
2.2 Shares and Shareholders................................................................................................. 237
2.3 Annual Statements in Relation to the Takeover Law ...................................................... 239
2.4 Share price development ................................................................................................ 244
3 Statement of Persons Responsible for the Annual Report ..................................................... 245
Annual Financial Statements .................................................................................................... 246
1 Consolidated Financial Statements ......................................................................................... 247
Consolidated Income Statement ................................................................................................ 247
Consolidated Statement of Comprehensive Income .................................................................. 248
Consolidated Balance Sheet ........................................................................................................ 249
Consolidated Cash Flow Statement ............................................................................................ 250
Consolidated Statement of Changes in Equity ............................................................................ 251
Notes to the Consolidated Financial Statements for the year ended 31 December 2024 ......... 252
Report on the audit of the consolidated financial statements ................................................... 336
2 Annual Accounts - EUROFINS SCIENTIFIC SE ........................................................................... 345
Profit and Loss Account .............................................................................................................. 345
5
Balance Sheet .............................................................................................................................. 346
Notes to the annual accounts for the year ended 31 December 2024 ...................................... 347
Report on the audit of the annual accounts ............................................................................... 365
6
Management
Report
CEO REVIEW
7
1 CEO Review
Our 2024 results are a clear demonstration that Eurofins’ value creation strategy is succeeding. In an operating
environment characterised in some markets by more challenging and volatile conditions, Eurofins delivered results
in line with our objectives for revenues and profitability and considerably beat our objective for free cash flow in
spite of organic growth being slightly lower than our long-term averages in 2024. Return on capital employed also
rebounded, improving year-on-year by 180bps to 12.2% vs 10.4% in 2023 and 9.1% in 2019. These results were
made possible by the dedication of our teams to excellence in all aspects of operations, the leveraging of our best-
in-class and most digital laboratory network and disciplined cash management of capex, M&A and working capital.
In turn, we have shared this value creation with our shareholders, not only by disbursing €98m of dividends, but
also by buying back €290m of our own shares at very attractive price levels, making this one of the best investments
for our capital at the moment. Excluding the considerable use of cash for opportunistic share repurchases, we
would have been more than able to self-finance all our capital commitments including net operating capex,
investment in owned sites, acquisitions, investments in start-ups and the integration of acquired companies, interest
and coupons on hybrid bonds and dividends. Even more impressively, despite returning almost €400m of capital
to our shareholders, we were nevertheless able to further reinforce our balance sheet by reducing financial leverage
to 1.9x.
Looking forward to 2025, it is our base assumption that some end markets will stay subdued in the near term, in
particular in certain ancillary activities in BioPharma and Agrosciences that represented less than 10% of Eurofins’
revenues in 2024, though the long-term growth drivers in these markets remain compelling. As for Life and
Consumer and Technology Products Testing, we expect continued strength in 2025, while Clinical Diagnostics is
expected to remain resilient. Meanwhile, Eurofins companies remain focussed on continuing to build out our best-
in-class hub and spoke laboratory network, excellence in customer service, further development and deployment
of our sector-leading proprietary IT solutions and scientific innovation. We also remain committed to our prudent
capital allocation strategy centred on growth investments, reasonably valued bolt-on deals that will provide
appropriate accretion to return on capital employed and opportunistic share repurchases at attractive valuation
levels. All in all, even with transient softness in some of our ancillary end markets affecting our short-term organic
growth outlook, Eurofins expects further improvement in our profitability, cash flow and ROCE again this year.
Though the immediate macroeconomic outlook remains uncertain, we are very confident in the long-term resilience
and promising growth potential of our life-science and biopharma related markets. We also remain very confident
in the strength of our leaders and employees, as well as our strategy to expand our market and technological
leadership, to create commercial value for our customers, financial value for our investors and opportunities for our
employees as we further progress toward achieving our 2027 objectives, when we plan to have completed the
buildout of a high growth, high margin, high returns and high cash flow Group leading key global life sciences
markets which enjoy strong secular growth prospects.
Financial highlights
• After disruptions caused by the COVID-19 pandemic, the war in Ukraine and their impact on supply chains
as well as exceptional inflation, 2024 is the first year of relative stability since 2019 where the continuation
of Eurofins’ historic growth trends of profitability and cash generation are clearly visible.
• Revenues of €6,951m increased year-on-year by 6.7% and organically
13
by 4.7%, setting a new record
and exceeding Eurofins' peak COVID-19 pandemic-driven revenue level. The lower organic growth
13
observed in FY 2024 and especially in Q4 2024 is largely due to softer markets and lag between large
studies in a very limited part of the Biopharma activities representing only about €400m in revenues in
2024 that were down about 10% but caused a negative impact of 110bps on organic growth
13
.
• Adjusted
1
EBITDA
3
of €1,552m was 13.8% higher year-on-year and 67% higher than the €931m recorded
before the COVID-19 pandemic in FY 2019, representing a CAGR of 11%. The corresponding margin of
22.3% and year-on-year improvement of 140bps vs FY 2023 was in line with Eurofins’ public objectives
as confirmed on 22 October 2024. All regions demonstrated improvement in profitability:
o The improvement in profitability was enabled by a combination of pricing attainment, volume
growth, better capacity utilisation and disciplined cost management, in particular personnel
expenses and consumables.
o In the mature scope representing €6,555m of revenues (94% of the Group), the adjusted
1
EBITDA
3
margin was 23.7%, a year-on-year improvement of 170bps and very close to Eurofins’
FY 2027 target of 24%. Separately Disclosed items
2
(SDIs) in this scope of €42m was equivalent
to only 0.6% of the scope’s revenues.
o The non-mature scope (comprised start-ups and acquisitions in significant restructuring)
represented revenues of €396m, a material increase vs €325m in FY 2023 as start-ups initiated
in recent years continue to ramp up. In addition to growth, cost discipline also helped to reduce
temporary losses in this scope to €71m vs €92m in FY 2023.
CEO REVIEW
8
o Reported EBITDA came in at €1,439m, 16.6% higher year-on-year and corresponding to a
margin of 20.7%, an improvement of 180bps vs FY 2023, 73% higher than €833m recorded in
FY 2019, representing a CAGR of 12%.
• As part of its ongoing programme to build its unmatched global service platform, Eurofins invested €154m
vs €152m in FY 2023 to purchase and develop laboratory sites it has discretionarily chosen to own instead
of rent, adding 98,000 m
2
of net surface area to expand its network, a year-on-year increase of 5.6%,
reaching a total surface area of 1,832,000 m
2
.
o New, upgraded or expanded facilities were commissioned in France, Italy, India, the U.K. and
the U.S., among others.
o Of the net surface area added during the period, 85% (83,000 m
2
) was added to sites owned by
Eurofins, bringing the total surface area of owned sites to 633,000 m
2
and the proportion of the
total net floor area owned by Eurofins to 34.5%, getting closer to its objectives to secure its main
large laboratory sites for the long term, which at this pace should largely be achieved by FY
2027.
• Eurofins’ Free Cash Flow to the Firm
10
(FCFF) before discretionary investment in owned sites
16
approached the €1bn mark, reaching €954m and well above the Group’s objective of €800m-840m
confirmed on 22 October 2024, in spite of significant investments in growth, digitalisation, start-ups,
reorganisation and restructuring of acquired companies. The value achieved in FY 2024 was 52% higher
than the €626m level achieved in FY 2023 and 126% higher than the €422m achieved in FY 2019,
representing a CAGR of 18%.
o After considering its investments to own its large laboratories, Eurofins’ FCFF
10
of €801m
increased by 69% vs €474m in FY 2023. The dramatically improved cash generation resulted in
a sizeable jump in cash conversion (FCFF
10
/ Reported EBITDA
3
) to 56% vs 38% in FY 2023
and 43% in FY 2019. Excluding the discretionary investment in owned sites, cash conversion
would have been 66% vs 51% in FY 2023 and 51% in FY 2019.
o Net operating capex of €365m (5.2% of revenues) vs €392m in FY 2023 (6.0% of revenues)
reflects already achieved progress in programmes related to capacity expansion carried out over
recent years.
o Net working capital
12
intensity recorded a prominent decline from 5.1% at the end of FY 2023 to
3.8% at the end of FY 2024. Thanks to measures taken to improve net working capital
12
, Days
of Sales Outstanding decreased to 54 vs 59 in FY 2023 and Days of Payables Outstanding
increased to 61 vs 60 in FY 2023.
o Free Cash Flow to shareholders (Free Cash Flow to Equity
17
less earnings paid to hybrid capital
investors) reached €457m vs €183m in FY 2023, equivalent to €2.40 per share vs €0.95 per
share in FY 2023. Compared to the Free Cash Flow to shareholders of €88m generated FY
2019, the FY 2024 value represents an increase of 419% and a CAGR of 39%.
• Net Profit
7
amounted to €405m (+32% year-on-year) and Basic EPS
8
was €1.87 (+41% year-on-year).
Compared to FY 2019, Net Profit
7
increased 108% (CAGR 16%) and Basic EPS
8
increased 128% (CAGR
+18%).
• Revenues in the Core Business increased organically
13
by 4.7% thanks to resilient contributions from all
regions.
o Excluding Agrosciences (crop science), BioPharma Central Laboratories, Bioanalysis & Phase
1 globally and Toxicology and CDMO in France, Italy and India, Group organic growth
13
in FY
2024 was 5.8% (5.1% in Q4 2024) and Biopharma grew 4.1% in FY 2024 and 4.7% in Q4 2024.
These excluded Biopharma activities represented only around €400m in revenues in FY 2024,
which were down 9.8% compared to FY 2023. As disclosed in the Q3 2024 trading update, this
is due to the end of large studies in the Central Lab and Bioanalysis areas in Q3 2024 that
Eurofins expects to replace in a few quarters. It also expects AgroSciences and CDMO to bottom
out in 2025 or start growing again in H2 2025 due to the finalisation of site moves, reorganisation
in CDMO and refocus on faster growing areas in Agrosciences.
o Biopharma growth of only 4.1% in FY 2024 and 4.7% in Q4 2024 excluding these activities
remained affected by almost flat revenues in Genomics and Discovery (early stage) representing
together about €300m in revenues in FY 2024. Going forward Genomics should benefit from the
finalisation of post-COVID refocussing on faster growth diagnostics and NGS and Discovery
should benefit from the pickup in biotech funding and investments in new sites and capabilities.
CDMO Canada is benefiting from large investments carried out over the last 5 years and showed
double-digit growth and strong profitability in 2024. Overall, this represents €700m of the
BioPharma or 10% of the Group revenues that had a negative impact on the Group’s organic
growth. The rest of the Group (90%) enjoyed satisfactory organic growth
13
levels.
o In Europe, organic growth
13
(FY 2024: 4.9%) was led by Environment Testing and Food and
Feed Testing, which grew in line with Eurofins’ mid-term organic growth objective of 6.5% p.a.
but was restrained by negative market trends in ancillary BioPharma activities such as
Agrosciences, Discovery and CDMO.
o Organic growth
13
in North America (FY 2024: 3.6%) was driven by the continued strong
development of Environment Testing and Food and Feed Testing, in line with, or above, Eurofins’
mid-term organic growth objective of 6.5% p.a., as well as stable mid-single digit growth in
CEO REVIEW
9
BioPharma Product Testing, but restrained by soft demand in ancillary BioPharma activities, in
particular early-stage clinical activities, BioPharma Central Laboratory and Agrosciences.
o Organic growth
13
in Rest of the World (FY 2024: 7.8%) remained at a robust level, led by diverse
activities including Food and Feed Testing and Consumer and Technology Products Testing.
o Start-ups contributed 0.9% to organic growth
13
in FY 2024, with 18 new start-up laboratories and
32 blood collection points opened during the period. The 319 start-ups and 99 BCPs launched
since 2000 have made material contributions to the overall growth of the Group, accounting for
€706m of revenues in FY 2024.
• The pace of acquisitions has remained strong throughout FY 2024, as Eurofins closed 31 business
combinations with FY 2024 pro-forma revenues of €225m and adjusted
1
EBITDA
3
of €34m at a cost of
€343m, reflecting an average sales multiple of 1.5x and adjusted
1
EBITDA
3
multiple of 10.0x. Notable
transactions closed in FY 2024 include:
o Ascend Clinical, LLC, the largest independent laboratory for kidney dialysis testing in the United
States, which further supports Eurofins’ efforts to provide best-in-class testing care to patients in
the renal and transplantation fields.
o Infinity Laboratories, operator of eight state-of-the-art laboratories across the U.S. offering
microbiology, chemistry, sterilisation and package testing to pharmaceutical, biotechnology and
medical device clients.
o Orchid Cellmark, a leading provider of forensic services in the U.K.
o Acquisitions that were signed but not yet closed in FY 2024 include Synlab’s clinical diagnostics
operations in Spain, which had revenues of approximately €140m in 2023. This transaction is
expected to close in 2025.
• Return on Capital Employed (ROCE, defined as adjusted
1
EBITAS
4
/ average capital employed over
previous 4 quarters) rebounded due to the improvement in profitability, progress toward finalising its capex
programme and reasonably priced acquisitions, resulting in a year-on-year increase of 180bps to 12.2%.
o Excluding the substantial goodwill of €4.8bn and intangible assets related to acquisitions of
€0.6bn on its balance sheet, Eurofins’ ROCE would have reached 34% vs 30% in FY 2023.
• In FY 2024, Eurofins returned €388m to shareholders through dividends and share repurchases:
o During the period, Eurofins disbursed €98m in dividends (equivalent to €0.50 per share) and
spent €290m to repurchase 5,850,000 of its own shares, representing 3.0% of its share capital.
o Eurofins paid an average price of €49.60 for repurchased shares in FY 2024. Assuming an
implied market capitalisation of €9.6bn, net debt of €3bn and hybrid capital of €1bn, this results
in an Enterprise Value (EV) of approximately €13.6bn and an EV/adjusted
1
EBITDA
3
(FY 2024)
valuation multiple of 8.7x paid for the share repurchase. As this low-price opportunity has
coincided with the start of a period of significantly increasing cash generation for Eurofins, the
Group has been able to take advantage of this situation to repurchase significant amounts of
shares while reducing its leverage.
o When compared to the same average valuation multiple of 10.0x paid by Eurofins for acquisitions
closed in FY 2024 and multiples in the mid-teens paid recently by others to acquire significant
TIC companies
1
, Eurofins believes its share repurchases were a prudent and value-accretive
use of its capital.
o At the currently attractive valuation levels, share repurchases now represent an additional
meaningful option for Eurofins to allocate capital and create shareholder value.
• Excluding the substantial cash allocated for opportunistic share repurchases, Eurofins was able to self-
finance all its capital commitments from its own cash generation.
• Eurofins’ balance sheet improved year-on-year as financial leverage (net debt
11
to adjusted
1
pro-forma
EBITDA
3
) declined to 1.9x at the end of FY 2024 vs 2.0x at the end of FY 2023 despite large cash outflows
dedicated to capex, M&A, dividends and share repurchases.
o Excluding cash outflows for share repurchases, financial leverage would have been 1.7x.
• At the upcoming Annual General Meeting (AGM) on 24 April 2025, the Board of Directors intends to
propose an annual dividend of €0.60 per share, a year-on-year increase of 20% and equivalent to a payout
ratio of 32%.
Strategic highlights
Eurofins continues to make important advances on its long-term growth, sustainability and innovation initiatives:
▪ Eurofins added 98,000 m2 of net surface area to expand its network in 2024, with 85% of the added area
owned by Eurofins. Since the end of 2018, the net floor area of buildings owned by Eurofins has more
than doubled from 240,000 m² to 633,000 m², corresponding to an increase in the ownership proportion
of the total net floor area from 19% to 35%.
▪ Further progress was made towards Eurofins’ objective of carbon neutrality by 2025:
1
Examples include the announced sale of a Food Testing business by a French company, the acquisition of a German company
involved in Environment Testing and the acquisition of a Food and Environment Testing company in the Netherlands, among
others.
CEO REVIEW
10
o Total emissions were reduced by 3.8% from 489 ktCO2e in FY 2023 to 471 ktCO2e in FY 2024.
o Focussed efforts to source renewable energy resulted in an increase of green electricity utilised
across the Eurofins Network from 23% in FY 2023 to 27% in FY 2024.
o Carbon intensity (tCO2e/m€ revenues) was 67 in FY 2024, 32% lower vs FY 2019 (baseline
year).
o In early 2024, Eurofins committed to setting near-term network-wide emission reduction targets
in line with the Science Based Targets initiative (SBTi).
▪ Eurofins made numerous meaningful contributions to Testing for Life in 2024:
o Eurofins Discovery launched the SH2scan
TM
assay. Developed using gold standard
KINOMEscan® technology, the assay quantitatively measures selective binding of test
compounds to investigate historically undruggable targets or to evade resistance to existing
therapeutic classes.
o NeXGen™, a first-of-its-kind next generation sequencing assay for detection of fungal pathogens
and acid-fast bacteria, was launched by Eurofins Viracor. It offers a powerful and comprehensive
approach to infectious disease testing, providing clinicians with valuable insights on prominent
pathogens allowing for more accurate diagnosis and appropriate treatment decisions.
o Eurofins On Farm Solutions, a service providing real-time insight into forage nutritional quality,
was launched by Eurofins Agro Testing in a collaboration with trinamiX. Powered by the largest
international forage analysis database, analysis performed by the Eurofins Forage Analysis App
allows forage growing and feeding systems to be optimised, leading to improved animal health,
boosted farm productivity and reduced environmental impact.
2025 and 2027 Objectives
Eurofins is providing its objectives for FY 2025 and updating its objectives for the mid-term and for FY 2027:
• In the mid-term and for FY 2027:
o Eurofins confirms its long-term average organic growth
13
objective of 6.5% p.a. driven by secular
growth trends in its end markets, as well as its target for potential average revenues from
acquisitions of €250m p.a. over the period consolidated at mid-year.
o The adjusted
1
EBITDA
3
margin objective for FY 2027 remains 24% and the objective for SDI
2
at
the EBITDA
3
level remains about 0.5% of revenues in FY 2027. Progression towards these FY
2027 objectives is likely to be back end weighted as 2025 and 2026 will still see very significant
spend on operational expenses related to digitalisation and dilution from acquisitions.
o Further increases in FCFF
10
and ROCE are expected as Eurofins completes its 5-year (2023-
2027) investment programme and the objective for cash conversion in FY 2027 remains above
50%.
o Eurofins targets to maintain a financial leverage in the range of 1.5-2.5x in the mid-term and
intends to gradually bring it down towards the lower end of the range by FY 2027. If required and
advisable compared to other capital deployment opportunities, the potential purchase of sites
from related parties will be executed in tranches in order to minimise the impact on financial
leverage.
o These objectives assume same average exchange rates in the mid-term to FY 2027 as in FY
2024. Actual results for each year will depend on the development of individual end markets,
exchange rates, the evolution of inflation and the quantum of M&A, among other factors.
• For FY 2025:
o Eurofins targets mid-single-digit organic growth
13
and potential average revenues from
acquisitions of €250m, consolidated at mid-year.
o The target for adjusted
1
EBITDA
3
margin is to improve above the level in FY 2024 of 22.3%.
o SDI
2
at the EBITDA
3
level should be slightly lower in value than the level in FY 2024 of €113m.
o Significant investments in digitalisation, completion of the hub and spoke network of state-of-the-
art laboratories and start-ups will continue in FY 2025. Nevertheless, Eurofins’ target is that Free
Cash Flow to the Firm
10
(FCFF) before investment in owned sites
16
will improve over the level in
FY 2024 (€954m).
o Taking into account comparables, the pace of internal improvement programmes and the
foreseeable development of its markets, progression on margin and cash flow is likely to be
stronger in H2 2025 vs H1 2025.
o These objectives assume same average exchange rates in FY 2025 as in FY 2024.
o In FY 2025, Eurofins aims to achieve self-financing of all its needs, including net operating capex,
investment in owned sites, acquisitions, interest and coupons on bonds and dividends before
share buy-backs.
• Capital allocation for strategically important investments to generate returns in excess of Eurofins’ target
hurdle rate remains key to Eurofins’ long-term value creation strategy. Priorities for net operating capex
in FY 2025 and in the mid-term will continue to include start-ups in high-growth/high-return areas, and the
development and deployment of sector-leading proprietary IT solutions. The capital allocation objective
for net operating capex is expected to remain at ca. €400m p.a.
CEO REVIEW
11
• In addition, investments to own Eurofins’ larger state-of-the-art sites will continue and is assumed to be
around €200m p.a.
• Eurofins is progressing as planned on its identification of strategic sites to be potentially acquired from
related parties should this be advisable within Eurofins’ leverage objectives and compared to alternative
investments and will update the market as concrete, actionable decisions emerge.
Sincerely,
Dr Gilles Martin
CEO
Dated 26 February 2025
Please see definitions of the financial terms discussed in section 3.10 “Alternative Performance Measures (APMs)”.
THE BUSINESS
12
2 The Business
2.1 The Eurofins Group
2.1.1 Who we are
Eurofins Scientific was founded in 1987 with 1 entrepreneur, 3 employees and 1 laboratory to market a patented
analytical method used to verify the origin and purity of several types of food and beverages and identify
sophisticated fraud not detectable by other methods. Building on this unique technology, Eurofins expanded over
the years in several phases by adding a very large range of bioanalytical technologies to serve a broader range of
industries.
Today, Eurofins is a leading provider of analytical services with a network of more than 950 laboratories and ca.
63,000 staff in 60 countries working across markets, continents and industries to carry out testing to improve health,
safety and the environment. Our experts meticulously apply scientific principles to ensure that the food we eat, the
air we breathe, the medicines we need and the products we use are safe. Eurofins companies perform more than
450 million tests each year to evaluate the safety, identity, composition, authenticity, origin, traceability, and purity
of biological substances and products, as well as providing innovative clinical diagnostic testing services. Our
portfolio of more than 200,000 analytical testing methods supports our mission of Testing for Life.
The Eurofins network of companies believes that it is a global leader in food, environment, pharmaceutical and
cosmetic product testing and in discovery pharmacology, forensics, advanced material sciences and agroscience
contract research services. It is also one of the market leaders in certain testing and laboratory services for
genomics, and in the support of clinical studies, as well as in biopharma contract development and manufacturing.
It also has a rapidly developing presence in highly specialised and molecular clinical diagnostic testing and in vitro
diagnostic products.
Eurofins companies’ broad range of services are important for the health and safety of people and our planet.
Ongoing investment to become fully digital and maintain a network of state-of-the-art laboratories and equipment
supports our objective to provide our customers with high-quality services, innovative solutions and accurate results
in the best possible turnaround time (TAT). Eurofins companies are well positioned to support clients’ increasingly
stringent quality and safety standards and the increasing demands of regulatory authorities as well as the evolving
requirements of healthcare practitioners around the world.
Eurofins has grown very strongly since its inception and its strategy is to continue expanding its technology portfolio
and its geographic reach. Through R&D and acquisitions, the Eurofins network can draw on the latest
developments in the field of biotechnology and analytical chemistry to offer its clients unique analytical solutions
and services.
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2.1.2 Our Vision, Mission and Values
Our Vision
Our long-term aspiration
To be the Global Leader in Testing for Life.
Our Mission
Why we are here – the cause/purpose of our business
To contribute to a safer and healthier world by providing our customers with innovative and high-quality laboratory,
research and advisory services whilst creating opportunities for our employees and generating sustainable
shareholder value.
Our Values
What we stand for/what is important for us
Customer Focus
• Delivering customer satisfaction by listening to and exceeding customer expectations;
• Adding value for our customers through our services;
• Seeking innovative solutions to help our customers achieve their goals.
Quality
• Delivering quality in all our work; providing accurate results on time;
• Using the best appropriate technology and methods;
• Seeking to improve or change our processes for the better.
Competence and Team Spirit
• Employing a diverse team of talented and competent staff;
• Investing in training and creating rewarding and equitable career opportunities;
• Recognising and encouraging outstanding performance.
Integrity
• Behaving ethically and socially responsibly in all our business and financial activities;
• Demonstrating respect and inclusivity towards our customers and our staff;
• Operating sustainable environmental policies.
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2.1.3 Where we operate
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2.1.4 Key figures
• ca. 63,000 employees
• 60 countries
• 950+ laboratories
• 200,000+ analytical methods
• 450+ million tests per year
2.2 Our Businesses
Eurofins’ decentralised structure of entrepreneur-led companies promotes closer relationships with, and more
individualised services for, clients, while fostering business agility and scientific innovation. Instead of a centralised
laboratory group, we are, by design, a network of empowered entrepreneurs each leading their company with a
large degree of autonomy. Eurofins companies’ businesses are primarily organised on a regional basis. This is in
part driven by regulation, which varies significantly across regions and imposes different operational requirements.
However, the broad geographical spread of the Eurofins network of laboratories, as well as the hub and spoke
network inside a country or a region, enable different laboratories operating in the same country or region to share
significant synergies between each other.
Customer markets can be roughly grouped into key areas of BioPharmaceutical Services, Food and Feed Testing,
Clinical Diagnostics, Environment Testing and Consumer Product Testing. We have also established Gold Standard
Diagnostics (previously known as Eurofins Technologies), a global provider of diagnostic technologies and
instruments in the fields of bioanalytical testing. Eurofins companies have developed tailored products and services
for clients in these markets and, as a result, are able to respond quickly to changing needs, build strong market
positions and defendable, sustainable competitive advantages.
2.2.1 BioPharmaceutical Services
From compound discovery and clinical research through manufacture and release of pharmaceutical products and
post-approval/marketing, the Eurofins BioPharma Services network of companies is a first-class biopharmaceutical
outsourcing services partner, working with pharmaceutical, biotechnology and medical device clients. The Eurofins
BioPharma Services network of companies provides seamless, end-to-end solutions to help clients advance
through the drug development cycle through a single, experienced provider. Our integrated solutions deliver the
most comprehensive range of state-of-the-art laboratory and manufacturing technologies with an expansive
geographic reach in order to support our clients’ specialised testing needs and stringent quality and safety
requirements around the world.
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• Discovery: Eurofins BioPharma Services companies are recognised as the industry leader in providing
drug discovery researchers with the largest and most diverse portfolio of standard and custom in vitro
safety and pharmacology assays and panels for drug screening and profiling, we have supported drug
discovery research for over 40 years;
• Preclinical/Early Development: we help our clients to evaluate and select the most promising new
molecular entities to enter into clinical trials to limit failure in full development. We can evaluate
pharmacological effects of drug candidates in all major therapeutic categories, with an emphasis on anti-
infectives, inflammation/allergy, Central Nervous System (CNS) disorders, and metabolic diseases. We
also support our clients with efficacy testing and robust historical control data to help further ensure the
success of their products;
• Contract Development & Manufacturing Organisation (CDMO): we provide a sustainable and flexible
solution to small and major biopharmaceutical companies to help them achieve their pre-clinical and
clinical milestones on time for Drug Substance/Active Pharmaceutical Ingredient (API) and Drug Products
(Biologics and Small Molecules). Operating under strict quality procedures, Eurofins CDMO operates
according to the requirements of the U.S. Food and Drug Administration (FDA), European Medicines
Agency (EMA), Agence Nationale de Sécurité du Médicament (ANSM), Agence Nationale de Sécurité
Sanitaire de l’Alimentation, de l’Environnement et du Travail (ANSES), Federal Agency for Medicines and
Health Products (FAMHP), Pharmaceuticals and Medical Devices Agency (PMDA) and Health Canada;
• Biopharma Product Testing (BPT): we operate the largest network of independent harmonised
biopharmaceutical Good Manufacturing Practice (GMP) product testing laboratories and provide
comprehensive laboratory services to the world's largest pharmaceutical, biopharmaceutical and medical
device companies, from starting materials through to finished product and packaging testing. We offer
clients the flexibility to manage testing programmes more efficiently through a choice of three unique
service models, including standard Fee for Service, our award-winning Professional Scientific Services®
(PSS) Insourcing Solutions, and Full-Time-Equivalent (FTE) service models.
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• Bioanalytical Services: with over 30 years of industry-leading scientific expertise, Eurofins bioanalytical
laboratories provide specialised bioanalytical services to the biopharmaceutical industry in the field of
pharmacokinetics, pharmacodynamics and drug metabolisms. We manage global clinical trials on small
molecules, large molecules and ADC utilising all conventional as well as novel delivery systems. Our
bioanalytical solutions cover preclinical non-GLP to multi-national Phase III clinical trials with Assay
Development and Validation by LC-MS/MS or Immunoassay, ADME studies, PK/PD, ADA, Nab,
biosimilars and biomarker analyses;
• Early Clinical Development: Eurofins companies track record of over 1,000 Phase I/II clinical trials
conducted establishes us as a reliable partner. Focusing on First-in-Human and Early Phase clinical trials,
we provide medical, technical and operational settings to allow our clients to base a go/no-go decision in
drug development on the best science and data. Thanks to our experienced team of experts and our large
network of Key Opinion Leaders, we are able to conduct a Phase I/II study in any therapeutic field in our
GCP environment. Our unified e-clinical platform spans clinical operations and clinical data management.
It provides a multi-tenant cloud and mobile-based workspace for all drug development activity;
• Central Laboratory: we assess the safety, dosage and efficacy of clients’ new drug products through all
clinical phases to support the development of medicines and treatments. We are dedicated to providing
the most cost effective and efficient testing solutions to pharmaceutical and biotechnology companies, and
CROs alike. Through our 4 standardised, wholly owned global locations in USA, the Netherlands,
Singapore and China, we provide CAP/CLIA certified analytical services in both a GCP and GCLP
environment. This allows us to combine safety and efficacy analysis with Biomarker Services within one
laboratory, facilitating cost efficiencies for Sponsor studies, and increasing specimen integrity by reducing
unnecessary transport. With Eurofins Central Laboratory acting as the hub, in a hub and spoke model,
Sponsors also have access to the extensive testing portfolio available throughout the Eurofins BioPharma
Services network of laboratories. Eurofins Central Laboratory also operates a unique, growing global
network of laboratories supporting rapid turnaround (less than 24 hours) for Peripheral Blood Mononuclear
Cell (PBMC) processing;
• Specialty Clinical Trial Laboratory: Eurofins Viracor BioPharma Services offers complex/esoteric testing
and assay development, to help advance Phase 1-4 clinical trials through trusted partnerships, scientific
excellence and exceptional service. For more than 30 years, Eurofins Viracor BioPharma Services has
been dedicated to helping clients by providing high quality, accurate results to evaluate the effects of drug
candidates across all major therapeutic categories. Eurofins Viracor BioPharma Services has broad
experience in molecular infectious disease testing, vaccine safety/efficacy assessment, immunogenicity,
cell-based assays, allergy/hypersensitivity, and biomarker analysis. Our validated test list includes more
than 2,800 assays, with new custom assays developed on a continual basis, in response to client needs;
• Anatomical Pathology: Eurofins Biomnis offers anatomic, clinical and molecular pathology services to
assess traditional clinical-pathological factors as well as the molecular biological features of a given tumour
to support safety, vaccine and oncology trials. Eurofins Biomnis focuses mainly on specialised pathology
testing, which requires highly skilled expertise, and which cannot be performed in routine private or
hospital-based laboratories.
Insourcing Services
• Professional Scientific Services® (PSS) Insourcing Solutions: Eurofins Professional Scientific
Services® (PSS) Insourcing Solutions provides laboratory management services to biopharmaceutical
companies who face workload/workforce challenges and require testing activities to remain at their
facilities. Eurofins PSS employees work on-site at the client facility to run and manage laboratory services
and remove headcount, co-employment, and project-management concerns for clients.
Our laboratories are accredited by local and international institutional accreditors and operate in accordance with
the principles of Good Laboratory Practices (GLP), Good Clinical Practice (GCP), Good Clinical Laboratory Practice
(GCLP), Good Manufacturing Practices (GMP), ISO 17025 or ISO 15189 as appropriate. Our integrated solutions
deliver the most comprehensive range of state-of-the-art analytical technologies and scientific excellence with an
expansive geographic reach in order to support our clients’ specialised testing needs and stringent quality and
safety requirements around the world.
• Genomics: Eurofins Genomics provide a myriad of solutions to client needs, from standardised products
like oligonucleotides, synthetic genes, Sanger sequencing and gene synthesis to highly customised
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project-based services. We help fast-track our client’s drugs using Next Generation Sequencing (NGS),
microarrays and qPCR/ddPCR with rapid turnaround times as well as industry leading quality.
2.2.2 Food and Feed Testing
We are the world’s leading network of food and feed testing laboratories, deploying a comprehensive range of state-
of-the-art analytical techniques to support our clients' increasingly stringent quality and safety standards. Our
laboratories and competence centres perform hundreds of millions of assays per year to establish the safety,
composition, authenticity, origin, traceability and purity of food and feed products.
We offer the broadest portfolio of food and feed tests and analyses and make this unique offering available globally
from our network of laboratories using optimised processes, logistics and IT services, including:
• Testing Services: 130,000 analytical methods assessing the safety, purity, composition, authenticity, and
traceability of food products and ingredients. Expertise includes testing for persistent organic pollutants,
dioxins and organic contaminants, pesticides, mycotoxins, allergens, pathogens and vitamins, and
analyses for genetic modifications (GMOs);
• Training, Consulting, Auditing and Certification: helping manufacturers, suppliers, retailers,
processors, and warehouse providers to implement consistent and high-quality food safety measures
through a variety of tailored food safety programmes run by highly qualified experts;
• Research and Development: protecting food and beverage companies by ensuring that the methods
used to test their products stay up to date with emerging food hazards and trends.
Eurofins laboratories provide testing, consulting, auditing and inspection services across the entire food supply
chain, from farm to fork. We serve clients of different sizes operating in a wide range of industries, from the largest
global food and beverage producers to independent farmers, food suppliers, retailers and restaurants.
2.2.3 Environment Testing
Eurofins Environment Testing laboratories contribute to the health and sustainability of the planet by providing
technology-leading laboratory testing and monitoring services across a global network to a wide range of industrial
companies, NGOs, environmental consultants, contractors, retailers and government authorities. Services
comprise testing of soil, sediment, solid waste; ground, surface, drinking, recycled and wastewater; air, tissue,
biologics (including biomonitoring using serum and whole blood), building materials and constituents of the Built
Environment, biofuels and other products to assess contaminant levels and impacts on human health and the
environment:
• Waste and Contaminant Testing: Eurofins Environment Testing laboratories routinely test for the
presence of organic, trace organic and inorganic contaminants, including pesticides, herbicides and
chemicals falling under the REACH directive, radioactive compounds, PCBs, dioxins and furans, PFAS
(Target and Non Target) compounds and derivatives, Pharmaceutical and Personal Care Products
(PPCP), and emerging contaminants in soils, solid waste, leachate, sludge, compost, surface, ground,
industrial process, drinking and wastewater;
• Water Testing: Eurofins Environment Testing laboratories provide physical, chemical and microbiological
testing services that cover the entire water cycle, from surface, waste and groundwater to municipal
drinking and beverage water, hospital hygiene, cooling towers (legionella testing) and seawater. Analysis
is undertaken to trace, and ultra-trace levels, including metal speciation and specialist micro and nano
plastic detection;
• Air Testing: Eurofins Environment Testing laboratories provide a broad range of services including stack
emission testing, ambient air testing, testing indoor air in buildings and workplaces, vapour intrusion, and
soil gas testing. Sample media includes cannisters, tedlar bags, sorbent tubes and passive collectors. Our
methods are derived from international, national and local standards as well as customised R&D. This
specialised field of testing is provided by highly trained and qualified scientists who have built significant
experience and knowledge in this area over the years;
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• Biomonitoring: Eurofins Environment Testing Laboratories have developed and offer a range of biologics
testing including serum and whole blood testing to assist Biomonitoring projects. Such monitoring allows
mass collection of data to establish population baselines. Eurofins pioneered the development of home
self-collection kits to facilitate wide coverage of diverse populations in biomonitoring projects;
• Built Environment Testing: Eurofins Environment Testing offers a specialised range of testing focussed
on the built environment (defined as man-made indoor environments). Testing includes mould detection
and identification, asbestos in building products, Indoor Air Quality (IAQ), Inspirable and Respirable dust,
silicates, and hospital clean room certification and all aspects of Industrial Hygiene.
• Pandemic Testing and Epidemiology: Eurofins Environment Testing laboratories provide a range of
testing services to both monitor and assist in the prediction of infectious disease spread (identification and
gene sequencing), as well catchment characterisation via wastewater surveillance programmes.
2.2.4 Clinical Diagnostics
The laboratories of the Eurofins Clinical Diagnostics division contribute to every stage of patient care: from genetic
predisposition to prevention, diagnosis, treatment monitoring and even prognosis. With hundreds of thousands of
clinical diagnostic tests performed every day, our laboratories strive to ensure that every patient, wherever he or
she lives, has access to the most specialised and innovative techniques for diagnosis, monitoring and therapeutic
decisions. Our logistics expertise and our daily sample collection and delivery network guarantee perfect continuity
in the provision of care while ensuring the same standard of quality and access to innovation across all the regions
we serve.
Our approach to clinical diagnostics is entirely focussed on excellence, innovation and technological investment
and we offer testing services in all medical specialties, including:
• Women’s Health: supporting women before, during and after pregnancy with specialised genetic,
hormonal and immunological tests for infertility, the most innovative Non-Invasive Prenatal Tests (NIPT),
as well as predisposition testing for common cancers;
• Organ Health and Transplantation: supporting clinical decisions for at-risk organs by providing testing
that evaluates function, immune response and other measures of effectiveness, as well as supporting
transplant physicians from pre- to post-transplant with histocompatibility testing, donor screening,
microbiology and infectious disease testing, immunosuppression management, early detection of graft
rejection and drug monitoring;
• Oncology: advanced suite of molecular diagnostics solutions for personalised cancer diagnosis and care
using state-of-the-art technology;
• Infectious Disease: robust portfolio of infectious disease testing solutions to provide fast and accurate
results in critical time settings, including testing for respiratory and gastroenterology viral, fungal and
bacterial pathogens.
2.2.5 Consumer Product Testing (CPT)
With our worldwide network of Consumer Product Testing laboratories, comprehensive services and recognised
expertise, Eurofins CPT laboratories help create a safer and more sustainable world by ensuring that everyday
products across hundreds of different regulatory systems worldwide meet required quality and safety standards.
Eurofins CPT offerings are well positioned to support clients’ stringent quality and safety standards and the ever-
changing demands of regulatory authorities around the world. Our primary focus in CPT is on products that can
have a direct impact on health through contact with the human body, such as cosmetics, textiles, shoes and apparel
as well as toys, wireless devices and electronic products. Our services include:
• Testing: testing clients’ products for chemical and microbiological composition, environmental impact,
sustainability, flammability, performance, safety and more;
• Product Compliance and Regulatory: we aim to reduce the time taken for a product to access the global
marketplace ensuring compliance with standards through accredited certification services and expert
testing;
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• Trainings, Audits and Inspections: we offer a complete catalogue of industry-specific regulatory and
technical courses, social, environmental or customised audits and product or special environment
inspections.
2.2.6 In Vitro Diagnostics (IVD) Solutions
Gold Standard Diagnostics is a global provider of diagnostic technologies and instruments in the fields of
bioanalytical testing for the food, feed, environmental, animal health, and clinical diagnostics industries. Its mission
is to become a full testing solution provider to vertically integrate key testing systems for Eurofins and third-party
laboratories.
The technologies mastered are industry-leading Enzyme-Linked Immunosorbent Assay (ELISA) and
Chemiluminescent Immunoassay (CLIA)-based systems (instruments and assays), rapid lateral flow tests as well
as Polymerase Chain Reaction (PCR)-based assays. Consumables and automation complete the Gold Standard
Diagnostics portfolio to suit a variety of testing needs.
We offer the following products and services:
• In-house consumables and kits, previously sourced from external providers, required to conduct laboratory
testing services across Eurofins’ business lines;
• Testing kits for the identification of allergens, pathogens, GMOs, mycotoxins, veterinary drug residues,
vitamins, food viruses, and determining animal species;
• Testing kits for the identification of algal toxins, pesticides, industrial chemicals and surfactants in water
and the environment, as well as environmental sampling devices and automated assay systems;
• Veterinary diagnostics test kits, with one of the broadest portfolios available on the market;
• Instruments to complete the in-house testing process: ELISA analysers, ELISA and Lateral Flow readers;
• Innovative suite of In Vitro Diagnostic (IVD) instruments, testing kits and testing reagents for a large range
of clinical diagnostic testing for infectious and vector borne diseases.
Gold Standard Diagnostics is organised as a network of excellence centres covering key functions including:
• Product/Solutions/Regulatory experts and distribution;
• R&D;
• Production/Logistic;
• Customer Care.
2.3 Our Markets
Our business is focussed on life science-related markets which are generally resilient, non-cyclical with recurring
and visible revenues. Even in times of crises or recessions, testing services typically remain in demand as the need
to ensure that food and water is safe, pharmaceutical products are effective, and the environment is protected
remains resolute. This is evidenced by our track record of positive organic growth even through the financial crisis
of 2007-2009 and during the COVID-19 pandemic.
Bioanalytical testing, defined by our companies as testing all products or substances that we eat, drink, ingest,
inhale or come into contact with physically, is a relatively new market particularly for third-party service providers.
Key growth drivers include rising average wealth and life expectancy, rising consumer demand for higher quality
goods and services, new technologies opening up new applications in the pharmaceutical, food, and environmental
markets, and the associated requirement for testing driven by regulation and more complex supply chains as a
result of globalisation. There is also an ongoing trend towards the outsourcing of testing activities so that companies
can better focus on their core competencies and reduce costs.
Equally, biopharmaceutical testing services are critical to the development of new drugs and therapies and
improving medical outcomes. These are fast-growing markets driven, in particular, by innovation and new
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technologies such as genomics and mRNA. Leading biopharmaceutical companies entrust this work to Eurofins
companies on the basis of our innovation and expertise.
Despite an ongoing consolidation process, these markets are still highly fragmented with multiple sub-segments
and a large number of smaller and medium-sized laboratories offering a limited technological portfolio, only a
regional presence and localised customer base. In contrast, as a one-stop-service provider with a local, tailored
approach to clients and a market leading testing portfolio, Eurofins is able to offer customers a large range of
analytical services, as well as support larger clients across multiple countries around the world.
Eurofins companies do not deem any other company to be an exact competitor across all the segments and regions
in which they operate. In subsequent sections, we describe some of Eurofins’ key competitors by market. It should
be noted that these lists are not exhaustive and may evolve over time; and are provided for illustrative purposes
only.
Increasingly Eurofins companies are more comparable to the activities of the following companies in the
biopharmaceutical and clinical diagnostics area, Evotec, Abcam (Danaher), Curia, PPD (Thermo Fisher Scientific),
Syneos Health, Quest Diagnostics, Cambrex, Catalent (Novo Holdings), LabCorp, IQVIA, ICON and Charles River.
Contract Research Organisations (CROs) like PRA Health Sciences (ICON) and Parexel can also be considered
competitors.
Some external equity and credit research analysts compare Eurofins with certain listed Testing, Inspection and
Certification (’TIC’) companies such as SGS, Intertek, Bureau Veritas and ALS. However, these TIC companies are
not pure laboratory testing players and Eurofins has limited overlap with them. Eurofins has only a very small
presence in the Inspection & Certification markets.
The industries we serve can be loosely broken down into the following markets:
2.3.1 The BioPharmaceutical Testing Market
We are a first-class biopharmaceutical outsourcing services partner (Contract Research Organisation - CRO,
Contract Development & Manufacturing Organisation - CDMO), working with the world’s leading pharmaceutical,
chemical, biotechnology, medical device and cosmetic clients. In an industry with strong growth potential, thanks to
factors such as rapid technological changes, increasing complexity in testing, drug modalities and clinical trials,
greater outsourcing to CROs by large pharmaceutical clients and increasing amounts spent per drug trial, Eurofins
companies cover all stages of the drug development process, thanks to an international network of laboratories and
testing units with global reach, uniform Quality Assurance systems, and high-quality services. Eurofins’ BioPharma
Services business line offers a broad portfolio of testing services and supports its clients by enhancing their
productivity and effectiveness and decreasing time to market in the development of new drugs, as well as providing
scientific and regulatory expertise in new geographies.
Eurofins companies’ addressable testing market for outsourced pharmaceuticals/biotech/agrosciences laboratory
testing services is estimated at around €6bn (to the best of Eurofins’ knowledge based on data available to its
companies, estimate only includes the outsourced part of the market).
Our pharmaceutical services span the entire drug development cycle, including biopharma product testing,
genomics, pre-clinical/ early development, bioanalyses, PK/PD, discovery pharmacology, clinical stage/central
laboratories, development and manufacturing. Some further information on these sub-segments is highlighted
below.
The BioPharmaceutical Product Testing (BPT) Market
Eurofins BPT companies operate the largest network of independent harmonised biopharmaceutical GMP product
testing laboratories and provide comprehensive laboratory services to the world's largest pharmaceutical,
biopharmaceutical and medical device companies, from starting materials through to finished product and package
testing. Our laboratories offer a broad range of methodologies under GMP authorisation, ISO 17025 accreditation
and ISO 9000 certification. Furthermore, analyses can be performed according to European and British
Pharmacopeia (EP and BP), Chinese Pharmacopeia (ChP), United States Pharmacopeia (USP) and Japanese
Pharmacopeia (JP), as well as specific customer methods. Three different service delivery models provide clients
with flexibility to meet their specific project needs:
• Traditional fee-for-service testing of client samples at Eurofins laboratories;
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• FTEs (Full-Time Employees) at Eurofins companies’ sites - dedicated employees working exclusively for
one client; and
• PSS (Professional Scientific Services) - dedicated, full-time, qualified, and trained Eurofins companies
PSS personnel working at the client’s site, trained, organised and managed by Eurofins Professional
Scientific Services® (PSS) Insourcing Solutions.
The largest clients use more than one of the aforementioned service tiers to enable strategic outsourcing and
optimisation of spend and project outcomes. Eurofins companies have, for many years, consistently been
recognised by both independent CRO awards and sponsor-specific strategic partner awards for outstanding
contributions to our customers’ drug development programmes.
Eurofins companies consider PPD (Thermo Fisher Scientific), SGS, Charles River and WuXi AppTec to be publicly
listed competitors in the BPT market (this list is not exhaustive and may evolve over time; it is provided for illustrative
purposes only).
The Genomics Market
Eurofins Genomics companies are leading providers of comprehensive genomic solutions with many years of
experience in the field of genetic synthesis and analysis with a global laboratory footprint. They serve a wide range
of customers including public and academic research institutes, hospitals, biotech start-ups and pharmaceutical
research with genomics research services as well as the food, pharmaceutical, agroscience/agrigenomics, in vitro
diagnostic, and environmental industries with applied genomics services.
The main activities of Eurofins Genomics companies include synthesis of oligonucleotides and genes and services
within molecular analyses of RNA and DNA from a wide range of species and specimens – always with a
consultative approach. Eurofins Genomics companies count large multinational corporates as well as biotech start-
ups amongst their customers.
Eurofins Genomics companies, for example, support their pharmaceutical customers in the development of
companion diagnostics and in translational medicine. With their multiple specialised technological platforms,
Eurofins Genomics companies support the entire value chain, which consists of target identification, target
validation, biomarker discovery and validation, pre-clinical development and clinical development (phases I, II and
III, post approval and manufacturing). Eurofins’ Next Generation Sequencing laboratories operate under Good
Laboratory Practice (GLP), GMP, as well as ISO 17025 accreditations.
The Genomics market is growing fast and its global reach is expanding thanks to factors such as growing demand
for research activities in the field of genomics, increasing numbers of biotech start-up companies, increasing
application of genomic sequencing in many areas including diagnostics, personalised medicine and crop
optimisation as well as increasing use of genomics-based products such as mRNA-based cancer therapies and
mRNA vaccines. In order to capture these market opportunities, Eurofins is continuously investing in its global Good
Manufacturing Practice (GMP) grade production and service facilities.
Eurofins companies consider IDT (Danaher), Genewiz (Azenta) and Abcam (Danaher) to be publicly listed
competitors in the Genomics market (this list is not exhaustive and may evolve over time; it is provided for illustrative
purposes only).
The Pre-clinical / Early Development Market
Eurofins companies offer a large portfolio of pre-clinical services including toxicology, pharmacology, metabolism,
pharmaceutical analysis, and biosafety testing. Eurofins' BioPharma Services companies have the advantage of
hosting industry-leading expertise in pre-clinical and clinical development within the same organisation. This
structure allows Eurofins companies to design the overall strategy for the benefit of their clients’ compounds. The
coordination of the pre-clinical activity of client projects is designed for successful clinical development outcomes.
Eurofins companies ensure timely, accurate and accessible data, while also offering consultancy support. This
integrated approach allows Eurofins companies to differentiate themselves from their competitors.
Early and pre-clinical drug development is a complex, regulatory, and strategy-driven process. The most important
element of the pre-clinical process is to select the best new molecular entities to enter into clinical trials and to avoid
failure in full development. Thus, the priority during the pre-clinical selection process lies in the safety and efficacy
testing of a new molecular entity. With decades of professional experience in drug development, Eurofins
companies are well positioned to offer a holistic approach to compound development in order to maximise the
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chances of success in the clinical phases. Eurofins ADME Bioanalyses has developed a screening test to support
pharmaceutical and biotechnology clients in the selection of a lead compound or to add further value to their
compounds. This test provides an earlier and more significant indicator of bioavailability than in vitro studies, bearing
in mind that approximately 50% of candidate drugs are discarded in the development phase due to an insufficient
level of bioavailability
2
.
Eurofins companies consider Charles River, Evotec, ICON, IQVIA and LabCorp to be publicly listed competitors in
the Pre-Clinical / Early Development market (this list is not exhaustive and may evolve over time; it is provided for
illustrative purposes only).
The Discovery Pharmacology Market
The Eurofins Pharma Discovery Services network has supported drug discovery research for over 40 years and
operates laboratories across three continents (US, Europe and Asia). It is recognised as the industry leader in
providing drug discovery researchers with the largest and most diverse portfolio of standard and custom in vitro
safety and pharmacology assays and products for drug screening, profiling and assessment. Researchers
performing in-house drug discovery have access to products and kits designed for use in drug discovery and product
testing. Over the last decade, Eurofins companies have acquired the following Pharma Discovery companies: Cerep
(France), Panlabs (Asia and US), DDS-Millipore (US and Canada), Selcia Drug Discovery (UK), Villapharma
(Spain), DiscoverX (US), Beacon Discovery (US), Discovery BioMed (US) and Calixar (France).
Eurofins companies’ broad global service capabilities and their scientific and operational expertise, developed
through decades of experience in providing drug discovery services, result in the delivery of high-quality,
reproducible study performance with high client satisfaction. The comprehensive portfolio of services offered by the
Eurofins Pharma Discovery Services network provides clients with the benefit of being able to work with a single
outsourcing provider for their drug discovery programmes.
In addition to its in vitro safety pharmacology strengths, Eurofins companies also offer computational, medicinal
and synthetic chemistry, high-throughput screening to identify promising compounds, assays to test the Absorption,
Distribution, Metabolism and Excretion (ADME) of compounds and a broad portfolio of over 4,500 drug discovery
products including assays and kits. The portfolio includes in vitro assays, cell-based phenotypic assays, safety
pharmacology and efficacy, ADME toxicology, medicinal and synthetic chemistry, custom proteins and assay
development capabilities. Through their broad portfolio and connected laboratories, Eurofins companies provide an
integrated drug discovery solution DiscoveryOne™ through project-managed programmes. The Eurofins Pharma
Discovery Services network supports a variety of drug discovery targets, such as G Protein-Coupled Receptors
(GPCRs), kinases, ion channels, nuclear hormone receptors, and other proteins and enzymes to serve a broad
range of therapeutic areas including but not limited to oncology, diabetes, and a range of infectious diseases. With
its unique product portfolio with applications in drug discovery and quality control lot release, Eurofins companies
provide the complete portfolio for drug discovery and development.
The drug discovery market is growing rapidly thanks to increasing research and development expenditures,
increasing focus on cost optimisation, a growing outsourcing trend, big data and artificial intelligence and global
pharmaceutical and biotech companies increasingly seeking dynamic, flexible and reliable partners.
Eurofins companies consider Danaher, Charles River, WuXi AppTec and Evotec to be publicly listed competitors in
the Discovery Pharmacology market, as well as the private companies Promega and Curia (this list is not exhaustive
and may evolve over time; it is provided for illustrative purposes only).
The Market for Clinical Development / Central Laboratory
Eurofins’ Central Laboratories provide an array of services to clients to ensure that any clinical trial sample is
collected, transported, managed, analysed, reported, and stored to meet the objectives and requirements of client
studies. These services include global kit production and logistics support, sample management and storage,
clinical and esoteric testing services, investigator services, project management and data management, and
scientific consultancy. Eurofins’ Central Laboratories support their clients throughout the entire drug development
process, from pre-clinical and proof of concept to confirmation.
2
Wei, M., Zhang, X., Pan, X. et al. HobPre: accurate prediction of human oral bioavailability for small molecules. Journal of
Cheminformatics (2022). https://jcheminf.biomedcentral.com/articles/10.1186/s13321-021-00580-6
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With over 20 years of experience and scientific expertise, Eurofins companies are dedicated to providing the most
cost-effective and efficient laboratory solutions to pharmaceutical and biotechnology companies and CROs.
Eurofins companies consider ICON, IQVIA, LabCorp and Syneos Health to be publicly listed competitors in the
Clinical Development market (this list is not exhaustive and may evolve over time; it is provided for illustrative
purposes only).
Peripheral Blood Mononuclear Cell (PBMC) Network
Eurofins Central Laboratories is the industry leading global Peripheral Blood Mononuclear Cell (PBMC) processing
provider and has expanded its global footprint with more than 30 harmonised laboratory locations worldwide; with
new locations being added steadily.
Training, harmonisation, and quality control are crucial to maintaining the integrity and high standards of PBMC
processing, which supports global clinical trials. To fulfil a less than 24-hour TAT requirement, Eurofins companies
either utilise a ‘Train the Trainer’ Model or deploy a Travelling Technician to laboratory sites.
A PBMC is any blood cell which has a round nucleus. These could include lymphocytes, monocytes, or
macrophages. Many scientists conducting research in the fields of immunology (including autoimmune disorders),
infectious disease, haematological malignancies, vaccine development, transplant immunology, and high-
throughput screening may work with PBMCs. PBMCs are used in cell-based analytical assays and can be subject
to operational challenges such as specimen transport methods, isolation, speed, quality of isolation, freezing, and
harmonisation, all important contributory factors when it comes to keeping as many cells alive as possible for
downstream analytical testing.
The Contract Development and Manufacturing (CDMO) Market
Eurofins CDMO companies provide integrated, end-to-end solutions for pre-clinical and clinical outsourcing services
of both Drug Substance/Active Pharmaceutical Ingredients (API) and Drug Product for New Biologic Entities (NBEs)
and New Chemical Entities (NCEs).
Eurofins CDMO companies help streamline the drug development cycles for pharmaceutical and biopharmaceutical
companies by allowing them to move rapidly from the research stage of NBE/NCE development to clinical stages
supported by integrated and time-efficient services.
Eurofins CDMO companies offer a range of services from formulation screening and development, analytical
development, stability studies, and pre-clinical safety assessment studies to sterile and non-sterile manufacturing,
Investigational New Drug (IND), Investigational Medicinal Product Dossier (IMPD), New Drug Application (NDA)
services, and Common Technical Document for the Registration of Pharmaceuticals for Human Use (CTD) services,
as well as the provision of clinical trial materials, including packaging and logistics. Eurofins companies have
extensive capabilities in multi-step syntheses, as well as the development of cytotoxic and highly potent Active
Pharmaceutical Ingredients (APIs).
With a global network of regulatory expertise, the Eurofins CDMO network provides high-quality, customised
solutions for complex products and unique production processes, specialising in the development of innovative
formulation technologies and solutions to enhance bioavailability and control drug release for difficult-to-formulate
drug candidates.
To support early phase programmes, including IND-enabling projects, Eurofins companies can execute all project
elements from the development of new, scalable API route options, route development and process safety
assessment, current Good Manufacturing Practice (cGMP) compliance to starting material and other raw materials
sourcing and development, polymorph screening and salt selection, analytical method screening and preliminary
stability profile as well as pre-formulation and pre-clinical supply. Our integrated group of companies provides a
seamless transition for API and drug substances from the initial discovery stages of the programme to
commercialisation and on-the-shelf.
Eurofins companies consider Catalent (Novo Holdings), Lonza and Patheon (Thermo Fisher) to be publicly listed
competitors in the CDMO market, plus the private companies Curia and Cambrex (this list is not exhaustive and
may evolve over time; it is provided for illustrative purposes only).
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2.3.2 The Clinical Diagnostics Market
The clinical diagnostics market comprises assays, instruments, and services that help in the diagnosis and
treatment of diseases. Eurofins companies have been active in this sector since 2014, with a special focus on
innovative specialised diagnostic services with a significant genetic component.
Eurofins companies are leaders in clinical diagnostics testing, particularly in Europe and the U.S. Our specialised
laboratories focus on key sub-segments of the clinical market, including transplantation, pre-natal, genetics,
dialysis, cardiac and infectious diseases. Eurofins companies’ clinical testing clients include hospitals, academic
medical institutions, organ procurement organisations, tissue banks, dialysis centres, biopharma companies,
independent physicians and consumers that can purchase clinical diagnostic products directly from Eurofins
companies. The U.S. market for reimbursement of clinical testing involves significant complexity, involving direct
payment by the client, third party reimbursement (e.g., Medicare or private payers) or direct patient payment; where
possible, Eurofins companies focus on client and direct patient payment.
The clinical diagnostics market is principally driven by demographics, which broadens the overall applicable market,
medical, technological and scientific innovation opportunities, and allows for opportunities in terms of offering patient
health assessment, advancements in the use of more personalised medicine for prevention and wellness, and
broad availability of healthcare research and information, which facilitates patients to be better-informed consumers
and purchasers of healthcare services.
As a result of these underlying industry dynamics, detailed clinical studies illustrating the medical necessity, efficacy
and cost savings of new diagnostic testing innovations are becoming increasingly important to validate adoption by
clinicians and reimbursement by payers. New pathogens and discoveries related to genetic conditions create the
need for new clinical tests whilst innovation and programmatic focus on licensing new intellectual property from
academia and industry have rapidly been gaining importance.
Overall, the clinical diagnostic market is expected to grow at 6.9% CAGR 2024-2032
3
as effective diagnosis enables
the use of more personalised medicine and allows healthcare professionals to more accurately diagnose and
prescribe tailored treatment to patients. According to a recent market study, the global clinical laboratory services
market is estimated to reach $468bn by 2032
3
.
Eurofins’ addressable testing market for the genetics/specialised testing sector of clinical diagnostics is estimated
at ca. €5-10bn (to the best of Eurofins’ knowledge based on data available to the Group, estimate only includes the
outsourced part of the market).
Multiple companies provide either specialised or routine clinical diagnostic testing services, or both, depending on
their technologies, scientific expertise, and relevant regulations. The competitive landscape is therefore highly
localised, and in certain areas, competition is mainly focussed on specialisation or branches of medical science.
Financial analysts typically cite Synlab, Cerba, Unilabs, LabCorp, Quest Diagnostics, Sonic Healthcare, Myriad
Genetics, Exact Sciences, Opko, Genomic Health, NeoGenomics, Natera, Invitae, Guardant Health, Veracyte,
CareDx, among others, as comparable peers to Eurofins’ clinical diagnostics activities (this list is not exhaustive
and may evolve over time; it is provided for illustrative purposes only). However, some of those companies are
larger than Eurofins and routine clinical diagnostic testing may account for a larger part of their revenues.
2.3.3 The Food and Feed Testing Market
The Eurofins network of companies is the global leader in food and feed testing, deploying a comprehensive range
of state-of-the-art analytical techniques in order to support its clients' increasingly stringent quality and safety
standards. We test almost all types of products that are consumed or used in the production of food, beverages
and feed. Each product type often requires different testing methods from country to country. Eurofins’ food and
feed testing portfolio is the most comprehensive in the market and comprises more than 130,000 different validated
analytical methods, including molecular biology techniques and testing for authenticity, nutrition, and contaminants
(including microbiological contaminants), issuing food quality certifications, and conducting hygiene audits, training,
and marketing and sensory studies.
3
Clinical Laboratory Services Market Size, Share & Industry Analysis, Fortune Business Insights (2024).
https://www.fortunebusinessinsights.com/industry-reports/clinical-laboratory-services-market-100725
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The food and feed testing market benefits from robust growth drivers, including rising frequency of food scares and
crises widely covered in the media, the spread of different quality control (QC) practices caused by globalisation,
rising consumer demand for safety and quality, the growing outsourcing trend of internal or state-owned laboratories
in varying industries and the ever-increasing innovations in fraud. However, one of the single largest drivers
continues to be regulation, especially in the EU and the U.S. More stringent rules imposing particular treatment of
food imports, labelling, quality standards, pesticides or additives are regularly published and updated (e.g., EU CLP,
EU REACH, US FSMA).
As a result, food and feed producing industries, as well as retailers, are compelled to strengthen their testing
programmes since their brands have become more global and their supply chains have grown in complexity, making
them more vulnerable to contaminations and, ultimately, reputational damage. The emergence of new products
such as Genetically Modified Organisms (GMOs) and tightening government regulation on food control also create
the need for new testing methods and globally standardised quality and service levels. Eurofins companies leverage
their global footprint and their technological expertise in other areas (i.e., Genomics) to develop innovative tests
and provide uniformity in quality control.
Eurofins companies count the majority of the largest global feed, food and beverage producers and retailers among
their clients and provide testing services to the entire food and feed industry, from farmers and food producers to
manufacturers, suppliers, retailers and caterers.
Eurofins companies’ addressable testing market for food and feed testing is estimated at ca. €4bn (to the best of
Eurofins companies’ knowledge based on data available to the companies, estimate only includes the outsourced
part of the market).
Eurofins companies consider ALS, Bureau Veritas, SGS and Intertek to be publicly listed competitors in the Food
and Feed testing market, as well as several private companies (this list is not exhaustive and may evolve over time;
it is provided for illustrative purposes only).
2.3.4 The Environment Testing Market
The contestable outsourced environment testing market (excluding in-house testing) is estimated at ca. €5bn (to
the best of Eurofins companies’ knowledge based on various published sector estimates) the Eurofins network of
Environment Testing laboratories is the largest and most comprehensive in the world. The network includes full-
service testing capabilities across Europe, North and South America, and Asia-Pacific.
The environment testing market enjoys robust growth drivers, including increasing societal concern for a clean
environment, corporate and investor driven focus on Environment, Social and Governance (ESG) issues,
increasingly stringent regulatory requirements in both developed and developing regions, significant progress in
epidemiology and medicine leading to an increasingly long list of compounds identified as persistent or ‘forever
chemicals’, and increasing requirements for more sophisticated analyses, lower detection levels, contaminant
precursors and increased sophistication in detection techniques.
Publicly listed competitors in the environment testing market include SGS, Bureau Veritas, ALS and Montrose
Environmental Group. A multitude of private and private equity firms of various sizes are present and compete in
each geography.
2.4 Our Business Model
Eurofins’ services are important for the health and safety of people and our planet. We are continuing to invest in a
network of state-of-the-art laboratories and equipment to remain at the forefront of scientific innovation and provide
our clients with the highest quality and service and the best possible TurnAround Time (TAT). Each Eurofins
laboratory strives for operational excellence and aspires to be the best partner to its clients by leveraging the
Group's network capabilities. This can be achieved for example through the sharing of know-how and best practice
across continents, world-class IT infrastructure and bespoke IT solutions, integrated logistics and significant
investments in R&D and laboratory infrastructure to develop a state-of-the-art network offering superior and well-
differentiated products and services. Since the establishment of the Group 37 years ago, becoming the leading and
preferred provider has been achieved across many countries and market segments by following a long-term
focussed, significant investment programme with the aim of becoming fully digital. The Group also runs Operational
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Best Practice schemes and Permanent Improvement Programmes (PIP), facilitated by an internal Group consulting
team.
2.4.1 Entrepreneurship through decentralisation
Eurofins’ decentralised structure of entrepreneur-led companies promotes closer relationships with, and more
individualised services for clients, while fostering business agility and scientific innovation. Instead of a centralised
laboratory group, we are, by design, a network of empowered entrepreneurs. Each of our laboratories operates as
a dynamic, market-driven business in its own right, managed by its own independent entrepreneurial leader,
constantly striving for improvement. Why? Because we believe in excellence for every customer and understand
this is only possible when our laboratory leaders are empowered to make their own decisions and optimise their
own services.
Our people are empowered, not micro-managed. They are encouraged to pursue opportunities and adapt their
operations to meet specific customer and market requirements. World-class results require focus, best-in-class
resources and a high concentration of leading minds highly motivated to deliver the very best outcomes.
Our decentralised structure also, we believe, benefits customers by enabling them to access the Eurofins network,
with unrivalled expertise and experience, and leverage the very latest testing technologies, wherever they are in
the world, whilst maintaining local points of contact.
2.4.2 Global footprint
With more than 950 laboratories in 60 countries across the world, Eurofins is uniquely positioned to globally and
optimally deliver best-in-class results for our customers across the entire value chain. The network has the scale
and potential to create competitive advantages over its competitors and to generate significant economies of scale
for the Company and its clients, while creating value for its shareholders. As we further progress with our
investments to expand our world-class fully digitalised hub and spoke laboratory network, the Group is ideally
positioned to capitalise on the growth megatrends of its life science-focussed send markets. Eurofins has now
largely completed the set-up of its laboratory network in Europe and North America with the market leadership
positions, scale and scientific excellence to offer even better, faster and more cost effective and innovative services
to its clients. Over the next decade, while continuing to expand in North America and Europe, the Group will focus
on expanding and optimising its laboratory network in the Asia-Pacific region. This means that wherever a client is
in the world, Eurofins can support them by providing high quality testing and analytical services.
2.4.3 Market leadership positions
The Eurofins network of companies believes it is a leader in most of the markets in which it operates including food,
environment, pharmaceutical and cosmetic product testing and in agroscience Contract Research services. It is
also one of the market leaders in certain testing and laboratory services for genomics, discovery pharmacology,
forensics, BioPharma Contract Development and Manufacturing, advanced material sciences and in the support of
clinical studies. It also has a rapidly developing presence in highly specialised and molecular clinical diagnostic
testing and in vitro diagnostic products.
Between 2010 and 2024, Eurofins companies developed a one-of-a-kind ‘hub and spoke’ laboratory infrastructure
for its leading markets by consolidating less efficient and smaller sites into large, high-throughput Centres of
Excellence (or ‘hubs’), in order to unlock the potential of economies of scale and the large cost advantages available
to the market leader vs competitors. Eurofins companies have consistently invested at a higher rate than any of
their large peers in the testing industry in its unique network of laboratories and state-of-the-art IT solutions, putting
its growth plan to develop market leadership platform well into motion.
Looking forwards, Eurofins is well placed to leverage its market-leading positions, in combination with its global
network of laboratories, scale and scientific excellence, to significantly improve its cash flow generation and
profitability to create further significant value.
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2.4.4 Long-term investment approach
Eurofins, as a founder-led network of companies, has always adopted a long-term value creation strategy of building
leadership positions in niche life science-focussed laboratory testing markets with strong growth opportunities. The
Eurofins network of companies continues to make strategic investments in innovation and R&D, start-up
laboratories, acquisitions, infrastructure and IT systems with the aim of creating growth and resilience for the long-
term. Service quality, maintenance and improvement are core elements of our governance and Eurofins’
management therefore prioritises long-term investment opportunities over short-term financial results. This is
evident from the continued significant investment projects undertaken by the Group. While, in the short-term, these
investments negatively impact margins and cash flow generation, Eurofins’ management is confident that the global,
fully digitalised laboratory network it is further building out will provide significant value creation opportunities over
the long-term and strengthen barriers to entry.
2.4.5 Customer relationships and quality service
Our laboratories develop strong relationships with our customers, who trust us with critical confidential information.
We have IT platforms that connect to our customers’ in-house systems to optimise sharing of information and bring
many advantages to our clients, for example in data management, test ordering processes and product releases.
This, alongside high-quality and accurate testing with fast turnaround times, helps to sustain high rates of customer
retention.
2.4.6 Investment in hub and spoke network
Eurofins’ network of laboratories is generally comprised of many local laboratories (spokes) addressing immediate,
local testing needs and some competence centres (hubs) where more specialised testing demands can be
concentrated for better efficiency and expertise. Such a network forms a structure similar to that of global logistics
networks and enables us to unlock economies of scope and scale by facilitating a greater volume of samples than
our competitors across different testing methods.
As a result of these hub and spoke networks, Eurofins companies are able to get to market faster than competitors
as new tests developed in one region can be quickly rolled out across the network. Know-how is constantly shared
across the network, enabling new testing methods to be quickly launched across geographical regions. Eurofins
companies fulfil the requirements of a broad range of customer segments including large global customers through
a globally harmonised and standardised portfolio of tests and processes with local and on-site support for customers
through local and regional laboratories situated near customers which understand their needs and requirements
and offer the highest analytical standards and expertise. Eurofins companies also support customers to outsource
their own laboratory requirements thanks to its unparalleled analytical expertise, experience and positive track
record in outsourcing industry-internal laboratories which translates into potentially significant cost savings and
material reduction in clients’ fixed cost base.
2.4.7 Investment in sector-leading proprietary IT solutions
Eurofins has established several in-house Laboratory Information Management Systems (LIMS) according to each
regional business line’s specific requirements to ensure flexibility, security and full control of system capabilities.
Over the past two decades, a master system has been developed for each of our main business lines to align
laboratories within the Eurofins network and implement a common IT language as the Group continues to grow.
The Group’s proprietary LIMS also supports greater flexibility in implementing processes across multiple systems.
The systems have been built to easily facilitate upgrades without the heavy customisation required by many
commercial IT systems available on the market. Eurofins’ proprietary LIMS also safeguards the intellectual property
of Eurofins laboratories, where there is a risk with commercial LIMS that expertise can be leaked to competitors
during an upgrade by a common supplier.
Eurofins IT Solutions improvement plans also comprise several other IT excellence programmes, run in order to
ensure the full digitalisation of laboratory operations and the adoption of the best digital technologies available in
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the market across the entire network of laboratories including processes, equipment, online sharing platforms to
connect clients to customer services, and machine-to-machine interface APIs, as well as the use of robots. There
is also scope to incorporate Artificial Intelligence (AI) to increase productivity, automate interpretation of results,
optimise accuracy and turnaround time, and create long-term cost efficiencies. These systems will ultimately
contribute to better utilisation, controls, standardisation, and turnaround times.
Underpinning this work are Eurofins’ proprietary databases, which are some of the world’s largest and most varied.
They are rich with information and fingerprints of many thousands of foodstuffs, biomarkers, DNA profiles, drugs,
proteins, etc., and are coupled with Eurofins’ bioinformatic specialists and tools needed for ‘big data’ analysis. This
information, unique in its excellent characterisation, adds value for our clients.
2.4.8 Focus on innovation
Companies operating within the life sciences sector must hold strong relationships with scientific bodies,
governments and research institutions who develop and standardise methods and analyses to guarantee the
compliance, safety and integrity of food and other products used worldwide. Over the years, Eurofins has developed
strong partnerships with these associations, and many Eurofins employees sit on related boards and advisory
panels such as the AOAC, USP, AFNOR, ISO and IFT. New entrants to these markets will not have such an
established range of partnerships, which are a prerequisite to developing and gaining scientific acceptance of new
testing methods. Recent and historical innovations Eurofins has made are further described in the following section.
2.5 Focus on Scientific Innovation
Eurofins has been contributing significantly to the advancement of science since 1987. As a global leader in
analytical testing, with more than 950 laboratories spread across 60 countries, there are countless examples where
our activities and our scientists’ great work was decisive in pushing the frontiers of Testing for Life. Our scientists
are at the forefront of scientific research and development and our companies are actively involved in collaborations
to significantly advance science and use it to respond to some of society’s most pressing issues. We are proud of
the discoveries and advancements our specialists have made, ranging from food to pharmaceuticals and forensics
to dioxins testing. As a leader in laboratory testing services, continuous scientific innovation and R&D are the
cornerstone of Eurofins’ strategy to offer the best possible service to our clients.
We live in an age of rapid disruption. Today’s best-in-class is tomorrow’s out-of-date. Innovation makes companies
truly sustainable and this is why at Eurofins we are constantly researching, developing and launching new analytical
testing methods to expand our service offering. Customers constantly demand faster, better and novel testing
methods to meet evolving regulation, safeguard their brand and support their risk management and quality control
processes. Eurofins develops and deploys proprietary digital solutions across its business lines to make
relationships with customers as efficient as possible.
Eurofins has one of the world’s largest and most varied databases, rich with fingerprints of thousands upon
thousands of food substances, biomarkers, DNA, drugs and many more. Thanks to Eurofins bioinformatics
specialists and a large portfolio of tools dedicated to ‘big data’ analysis which enable us to begin to harness the
power of Artificial Intelligence (AI) to continuously improve testing methods and improve productivity at our
laboratories, Eurofins is uniquely positioned to derive new scientific meaning and make life safer. The complexity
of our analyses, often searching for the minutest traces of a substance, means our activities in these areas
necessarily sometimes take years of painstaking research and ongoing improvements to our numerous methods.
In other areas, we have responded in a swift manner to global health crises.
Eurofins’ decentralised structure and network of entrepreneur-led companies promotes closer relationships with,
and more individualised services for, clients, while fostering business agility and scientific innovation.
Thanks to the exceptional efforts of its entrepreneur-led companies, the Group continues to make advances and
innovations in multiple core business areas in 2024.
Further details on some of these innovations can be found below and on the Eurofins website
(https://www.eurofins.com/scientific-impact/scientific-innovation/).
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2.5.1 BioPharmaceutical Testing
Examples of innovations in BioPharmaceutical Testing are summarised below:
Eurofins Discovery introduced novel test SH2scan™ to investigate historically undruggable targets or to evade
resistance to existing therapeutic classes. SH2scan presents a comprehensive platform to efficiently investigate
therapies that disrupt protein-protein interactions, inhibit allosteric sites, or develop a protein degrader and offers
convenient, rapid measurement of on-target and off-target effects of therapeutics across SH2-domain containing
proteins.
Eurofins Discovery launched high throughput spectral shift tests to expand its assay portfolio for hit finding, a stage
in the drug discovery process. The technology offers a high throughput format enables the screening of millions of
compounds allowing pharma to evaluate more potential compounds faster. Eurofins Discovery will be leader on the
market, already with extensive expertise in Spectral Shift technology – the first CRO to acquire the Dianthus device
which is not available at any other CRO.
Eurofins Discovery also launched biophysics and binding affinity assays applicable in hit finding. This is compatible
with all kinds of protein targets (DNA or RNA-protein, disordered proteins, transcription factors, E3 ligases, GPCR,
ions channel), applicable for a large range of undruggable targets and modalities.
Eurofins DiscoverX Products has expanded its footprint in Fremont, California to support growth and expand the
product portfolio. The DiscoverX product portfolio supports drug discovery and quality assessment of drug product.
Eurofins Discovery launched DiscoveryAI SAFIRE (Suite of ADMET Predictions for In Silico Refinement and
Evaluation). SAFIRE is an advanced platform that leverages proprietary datasets, Artificial Intelligence (AI), and
Machine Learning (ML), offering a unique capability for expediting discovery. Eurofins Discovery’s experienced
informatics experts collected vast, high-quality and diverse datasets that provide a unique approach in predicting
the ADMET (Absorption, Distribution, Metabolism, Excretion and Toxicity) properties of molecules. It sets a new
standard in predictive analytics.
In September 2024, Eurofins Genomics US announced the opening of its new world-class oligonucleotide
manufacturing facility in Louisville, Kentucky. The expansion significantly increased its manufacturing capacity and
capabilities, allowing Eurofins Genomics US to meet the ever-growing global demand for GMP-grade and research
use oligonucleotides.
In BioPharma Product Testing, there has been an extension of activities related to medical device testing,
particularly those related to sterilisation and package testing.
2.5.2 Clinical Diagnostics Testing
Some examples of innovations in Clinical Diagnostics Testing are summarised below:
In January 2024, Eurofins Viracor continued its focus on specialty infectious disease diagnostics with the launch of
a NexGen Sequencing assay for the detection of a broad range of fungal pathogens and acid-fast bacteria in
critically ill patients. In March 2024, Viracor launched Eculizumab drug level monitoring to support the management
of a serious complication in stem cell transplant patients, Transplant Associate Thrombotic Microangiopathy (TA-
TMA). This assay, paired with Viracor’s rapid turnaround time and assays for CH50 and sC5b-9 launched late in
2023, allows physicians to better diagnose and treat TA-TMA. In June 2024, Viracor launched an assay to quantify
the non-pathogenic Torque Teno Virus (TTV), which has been identified as a potential biomarker of immune status
in transplant patients, empowering physicians to manage levels of immunosuppressive drugs more safely and
objectively.
In April 2024, Eurofins Genoma published the results of a clinical study of >70.000 patients on non-invasive prenatal
testing. Genoma has developed a bioinformatics solution to identify whole genome-sequencing data of the fetus
obtained from peripheral blood of pregnant women not only full chromosome anomalies and Copy Number
Variations (CNVs) larger than 7 Mb, but also microdeletions (CNV <= 7 Mb). This study confirmed the high accuracy
of the non-invasive prenatal test combined with superior bioinformatics. The observed reliability in detecting
genome-wide chromosomal conditions reinforced the expanded NIPT utility in clinical practice and is the basis for
the extensive reproductive health portfolio of Eurofins Genoma. This expanded test portfolio is available to all
Eurofins Clinical Diagnostics providers globally.
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Since its acquisition in April 2024, Eurofins Ascend Clinical introduced specialised services that allow its hospital
clients to meet the Association for the Advancement of Medical Instrumentation Standard 108 (AAMI ST108), which
leverages decades of expertise in healthcare water testing to support clients to meet new and rigorous safety
requirements. Eurofins Ascend Clinical has also introduced improvements to its mobile and web applications that
minimise labour-intensive tasks such as rescheduling and relabelling, simplifying workflows and enhancing client
productivity.
In June 2024, Eurofins Biomnis launched its fully integrated prenatal exome workflow integrating proprietary all-in-
one specific bioinformatics pipelines including contamination search, identity check and uniparental disomy search.
This innovation drastically improves process robustness of this highly sensitive activity and secures required fast
TAT.
In August 2024, Prostatype® was launched by Eurofins Megalab in Spain in cooperation with Prostatype Genomics
AB. Prostatype® is a molecular test based on the analysis of the gene expression of 3 specifically selected genes.
It allows for the assessment of the status and aggressiveness of prostate cancer by providing information on survival
and treatment effect. The gene expression information is combined with the patient's clinical data and this data set
is used to calculate a P-Score that provides the overall 10-year survival information in relation to treatment.
Prostatype® is intended for decision-making in patients with Gleason 3+3 or 3+4 prostate cancer. Prostatype® is
also valid for the 11 years following the prostate biopsy and can be used in patients who are on active surveillance
to determine whether they should remain on surveillance or switch to a form of treatment. In September 2024,
Eurofins Biomnis published the Shark-VNTyper MUC1 pipeline validation, a pioneering bioinformatics method for
systematic MUC1 variation screening using exome sequencing data. This innovation aligns with the Eurofins
Biomnis' vision of providing ‘all-in-one genetics for nephrologists’. Through a single exome sequencing test,
nephrologists gain access to a comprehensive diagnostic tool for kidney diseases. This includes previously
inaccessible MUC1 variations, copy number variations, and additional valuable insights for holistic patient care,
such as access to actionable genes and pharmacogenetic information.
Eurofins Transplant Genomics launched OmniGraf Liver in Q3 2024, which combines TruGraf gene expression
results with TRAC dd cfDNA results to provide a single numerical score with a cutoff to indicate the risk of acute
rejection in liver transplant recipients. This result can be used by physicians to guide decisions about immune
suppression dosing and reduction, making OmniGraf Liver the first and only non-invasive diagnostic test that
provides guidance for controlled reduction of immunosuppression to optimise therapy in liver transplant recipients.
In December 2024, Eurofins Transplant Genomics launched an infectious disease add-on component test for those
patients that have had TRAC orders. The additional test provides accurate and sensitive detection of viral DNA
from the same sequencing data used to determine the percentage of donor-derived cell-free DNA. Both common
viral pathogens and the non-pathogenic virus TTV are reported. These results provide physicians with a more
comprehensive assessment of infection and rejection risks in solid organ transplant recipients.
Also in 2024, Eurofins Biomnis signed a partnership with the company Novagray to offer personalised predictive
RILA (Radio Induced Lymphocyte Apoptosis) tests for breast cancer and prostate cancer. Statistics indicate that,
of the 50 percent of cancer patients that undergo radiotherapy, 5 to 10 percent of them will report late radiotoxicity
around 8 years post treatment, mostly in the form of disabling fibrosis. However, this late complication could be
avoided or mitigated if the subjects at risk are identified upstream, before initial radiotherapy sessions. This test,
carried out on a blood sample, reproduces the equivalent of irradiation in vitro. Depending on the type of immune
response induced, a score calculation makes it possible to assess if the patient is at risk of developing later
complications. The radiotherapist will thus be able to adapt their protocol for subjects at risk.
Eurofins Biomnis has also developed a comprehensive range of exome analyses, which has led to the offering of
pharmacogenetic passports in nephrology in 2023, and in psychiatry in 2024 (i.e., psychotropic drugs and
antidepressants). Pharmacogenetics, the study of genetic factors to predict a patient’s response to specific
medicine, aims to improve medication safety (i.e., mitigating side or adverse effects) and efficacy. 99 percent of
individuals have at least one genetic variant that affects the metabolism of commonly prescribed medicine. Several
studies have demonstrated that pharmacogenetics could significantly decrease the time required to achieve
treatment balance, and hence reduce hospitalisation. Pharmacogenetics has proven to be particularly useful in
psychiatry where the efficacy (or alternatively the ineffectiveness) of a treatment would otherwise take several
weeks, if not months, to be determined. Pharmacogenetic passports can be established and used at different stages
of the patient journey. The passport can be established pre-emptively, for instance for commonly prescribed
medicine. The passport can be provided as companion diagnostics together with treatment prescription. or
prescribed after observing the patient’s response to a treatment.
THE BUSINESS
32
2.5.3 Food and Feed Testing
Some examples of Eurofins innovations in Food and Feed Testing are summarised below:
In 2024, Eurofins Food Integrity Control Services in Germany reached a groundbreaking milestone with the
development of a state-of-the-art LC-HRMS method to verify the geographical and botanical origins of honey. This
revolutionary technique, developed in partnership with the University of Hamburg, combines untargeted LC-HRMS
analysis with advanced big data modelling and artificial intelligence. Powered by an extensive database of
thousands of reference honey samples with verified provenance, the method received ISO 17025 accreditation in
April 2024. Uniquely, this Eurofins laboratory is the first laboratory in the world to offer a full non-target LC-HRMS
analysis that simultaneously tests for honey adulteration while confirming honey origin. This two-fold benefit
significantly improves honey authenticity control, ensuring that adulterated products are eliminated before reaching
the market. This paves the way for fair trade and reinforces consumer trust in honey. Eurofins thus strengthens its
position as a leader in honey testing, delivering a cutting-edge solution for the industry.
In 2024, Eurofins’ laboratory teams in Nantes, France, developed an internal artificial intelligence tool that combines
image recognition algorithms with Large Language Models (LLMs) to automate the sample recognition and
registration processes. This allows Eurofins to automatically identify products, input estimated nutritional values and
check the consistency of applied testing methods as well as result compliance. Thanks to Eurofins’ internally
developed LIMS, this AI-powered automation solution has been smoothly integrated with existing systems for
improved user experience and data quality.
In November 2024, the Eurofins Agro Testing business line announced the launch of Eurofins On Farm Solutions,
a revolutionary new service that allows farmers, advisors, and those in the Agri-Food supply chain to analyse forage,
used for livestock feed, with handheld analytical devices to gain on-demand insight into nutritional quality. This
allows forage growing and feeding systems to be optimised, leading to improved animal health, boosted farm
productivity, and reduced environmental impact. This marks the first partnership for Eurofins On Farm Solutions
with trinamiX, a brand of BASF. Eurofins is coordinating the project and developing calibrations for trinamiX’s next
generation handheld Near InfraRed Spectrometer (NIRS), based on thousands of forage samples obtained from
Eurofins’ network of agricultural laboratories across Europe, using machine learning algorithms to achieve best-in-
class performance.
In 2024, Eurofins laboratories in North America launched new methods in microbiology. In Louisville, molecular
salmonella serotyping was onboarded, replacing traditional Kauffman-White serotyping and reducing turnaround
time from around 7 days to less than 48 hours. In Madison, digital PCR, utilising the QuantStudio Absolute Q chip-
based dPCR system, was launched as an alternative technology for probiotic enumeration. Method development
studies have also been conducted for the USP Expert Panel on Probiotics.
Furthermore, in 2024, Eurofins developed new methods for high throughput screening and quantification of food
products, including weight loss pharmaceutical adulterants and stimulants in dietary supplements. This covers the
screening and quantification of pharmaceutical adulterants, including anabolic steroids, Selective Androgen
Receptor Modulators (SARMs) and growth hormone secretagogues in sports nutrition dietary supplements,
NonSteroidal Anti-Inflammatory Drugs (NSAIDs) and other anti-inflammatory agents, analgesic agents, and muscle
relaxants in dietary supplement products advertised for joint care and joint pain management; as well as
phosphodiesterase type 5 inhibitors (pharmaceutical adulterants) in sexual enhancement dietary supplements and
ingredients.
In 2024, Eurofins Food and Feed Testing in North America introduced multiple new chromatographic methods for
the analysis of bromoforms in animal feed. These bromoform additives reduce methane production in livestock by
up to 95%, important in the context of global warming.
2.5.4 Environment Testing
Some examples of innovations in Environment Testing are summarised below:
Eurofins’ extensive network of PFAS testing laboratories, which holds leading positions in terms of capacity and
samples processed in the U.S., Europe and Australia, has been further extended to include laboratories in Canada,
Japan, South Korea, Taiwan and New Zealand. A number of Eurofins laboratories are also world leaders in terms
of are of PFAS expertise, including Eurofins Knoxville Laboratory (USA) and Eurofins Analyses de L’Air (France),
which are the only certified laboratories in the world for the determination of PFAS in stationary source air emissions.
THE BUSINESS
33
Eurofins has increased its footprint and offering related to microplastics testing with laboratories now operating in
six counties: Australia, Hungary, Norway, Spain, USA, and Vietnam. The network, unrivalled commercially, offers
all current recognised determinative techniques: Light Microscopy, Ramen Spectroscopy, Fourier Transfer Infrared
Spectroscopy (FTIR), Laser Direct Imaging (LDIR), Pyrolysis GC-MS, and Thermal Desorption GC-MS. In June
2024, the Melbourne Microplastics laboratory, became the first laboratory to be accredited globally to ISO 17025,
and was awarded the National Association for Testing Authorities (NATA) Excellence award in June 2024 for
Technical Infrastructure and Innovation. Eurofins EnvironeX (Canada) was awarded the prestigious EnviroLys
award for services supporting and developing the green economy – specifically for the analysis of PFAS in the
Environment and Carbon Analysis to support carbon sequestration measures.
2.5.5 In Vitro Diagnostics (IVD) Solutions
Examples of innovations from Gold Standard Diagnostics are summarised below:
In September 2024, Gold Standard Diagnostics Clinical Diagnostics Frankfurt GmbH launched a new Research
Use Only (RUO) real time PCR multiplex assay for the detection of Mpox Clade 1b variant, becoming a leading
provider of such solutions in Europe.
Gold Standard Diagnostics also completed and strengthened its offering with a number of new products in food
testing, focusing on the food allergen, mycotoxins and foodborne pathogen detection field, thereby making its food
rapid testing kit portfolio one of the most comprehensive on the market. In 2024, multiple rapid testing products
(SENSIStrips) were launched for mycotoxins field testing, completed with portable equipment, enabling the
detection of aflatoxin and deoxynivalenol contamination in various cereals and crops in just 7 minutes. The
SENSIStrips,are able to address the critical rapid testing needs of the supply chain during goods acceptance as
they are fast, precise, reliable and easy to use on the field.
Gold Standard Diagnostics’ allergen rapid testing portfolio is undergoing a major upgrade with the introduction of
the PowerLine range. These tests represent a sensitive detection system based on a monoclonal antibody. Due to
an introduced hook line, false negative interpretation of highly contaminated samples (hook effect) can be excluded.
In the field of Animal Health, a new solution including automation and test kits was launched to improve allergy
diagnostics for dogs. The Canine INgezim PLEX assays are based on indirect ELISA micro-arrays and application
of these tests results in significant cost and time reduction and enhanced accuracy compared to conventional
methods or outsourcing testing to third parties. To automate testing processes, the Hailstorm 2-plate, compact
automatic analyser and reader for ELISA, ELISA-microarray and CLIA assays, was developed by Gold Standard
Diagnostics and is validated to use with the INgezim assays.
With multiple testing methods including lateral flow, PCR and ELISA kits, and automation platforms for lateral flow
and ELISA analysis, Gold Standard Diagnostics can provide complete solutions covering diagnostic test kits and
instruments, complimented by services, to best meet clients’ specific needs.
FINANCIAL AND OPERATING REVIEW
34
3 Financial and Operating
Review
3.1 Business Review
The following figures are extracts from the Consolidated Financial Statements and should be read in conjunction
with the Consolidated Financial Statements and Notes for the year ended 31 December 2024.
Table 1: Full Year 2024 Results Summary
FY 2024
FY 2023
+/- %
Adjusted
results
+/- %
Reported
results
In €m except
otherwise
stated
Adjusted
1
results
Separately
disclosed
items
2
Reported
results
Adjusted
1
results
Separately
disclosed
items
2
Reported
results
Revenues
6,951
-
6,951
6,515
-
6,515
+7%
+7%
EBITDA
3
1,552
-113
1,439
1,364
-129
1,234
+14%
+17%
EBITDA margin
(%)
22.3%
-
20.7%
20.9%
-
18.9%
+140bps
+180bps
EBITAS
4
1,017
-174
843
842
-172
669
+21%
+26%
Net profit
7
687
-282
405
568
-260
308
+21%
+32%
Basic EPS
8
(€)
3.37
-1.50
1.87
2.71
-1.38
1.33
+24%
+41%
Net cash
provided by
operating
activities
1,319
1,018
+30%
Net capex
9
518
544
-5%
Net operating
capex
365
392
-7%
Net capex for
purchase and
development of
owned sites
154
152
+1%
Free Cash Flow
to the Firm
before
investment in
owned sites
16
954
626
+52%
M&A spend
343
158
+117%
Net debt
11
2,996
2,705
+11%
Leverage ratio (net debt/pro-forma adjusted
EBITDA)
1.9x
2.0x
-0.1x
Note: Definitions of the alternative performance measures used can be found at the end of this section
FINANCIAL AND OPERATING REVIEW
35
3.2 Revenues
Revenues increased year-on-year to €6,951m in FY 2024 vs €6,515m in FY 2023, supported by resilient organic
growth
13
in the Core Business (excluding COVID-19 related clinical testing and reagents revenues) of 4.7% and
acquisitions, which contributed €132m to consolidated revenues in FY 2024. Had these businesses been acquired
as of 01 January 2024, Eurofins’ consolidated revenues would have increased by an additional €93m. In contrast,
a year-on-year headwind of 0.3% from foreign currency negatively impacted revenue development.
Table 2: Organic Growth Calculation and Revenue Reconciliation
In €m except
otherwise
stated
2023 reported revenues
6,515
+ 2023 acquisitions - revenue part not consolidated in 2023 at
2023 FX
66
- 2023 revenues of discontinued activities / disposals
15
-32
= 2023 pro-forma revenues (at 2023 FX rates)
6,549
+ 2024 FX impact on 2023 pro-forma revenues
-21
= 2023 pro-forma revenues (at 2024 FX rates) (a)
6,528
2024 organic scope
13
revenues (at 2024 FX rates) (b)
6,812
2024 organic growth
13
rate (b/a-1)
+4.4%
2024 acquisitions - revenue part consolidated in 2024 at 2024
FX
132
2024 revenues of discontinued activities / disposals
15
7
2024 reported revenues
6,951
Table 3: Breakdown of Revenue by Operating Segment
€m
FY 2024
As % of
total
FY 2023
As % of
total
Y-o-Y
variation %
Organic
growth in
the Core
Business*
Europe
3,549
51%
3,306
51%
+7.3%
+4.9%
North America
2,660
38%
2,507
38%
+6.1%
+3.6%
Rest of the World
742
11%
701
11%
+5.8%
+7.8%
Total
6,951
100%
6,515
100%
+6.7%
+4.7%
* Excluding COVID-19 related clinical testing and reagents revenues
Europe
• Reported revenues increased in FY 2024 vs FY 2023 by 7.3%, driven by solid organic growth
13
in most
areas of activity.
• Food and Feed Testing in Europe saw a recovery in growth in most countries during the course of 2024,
in line with Eurofins’ mid-term objective of 6.5% organic growth
13
, supported by pricing attainment as well
as some volume increases driven by product development by food producers. In parallel, Eurofins
continued to implement initiatives to control costs and boost efficiency, including capacity optimisation
through labour force adaptations and footprint consolidation. Furthermore, Eurofins has continued to
invest significantly in innovation and digitalisation to improve the productivity of its laboratories. These IT
solutions, as well as other related bespoke standardised proprietary IT applications, should be fully
deployed throughout the region by the end of 2026 to replace and reduce a vast array of costly and less-
FINANCIAL AND OPERATING REVIEW
36
efficient legacy IT solutions. Additionally, during the second half of 2024, Food and Feed Testing in Europe
began the development of its first AI-based solutions that aims to significantly improve levels of customer
service, automate various process steps in laboratories and support employees in their daily work.
• The Environment Testing business in Europe set new sales records in 2024, driven by market share gains
on the back of strong turnaround time performance, customer service and offerings across multiple
countries, as well as pricing initiatives. In terms of organic growth
13
, in addition to continued pricing and
commercial excellence initiatives, volume increases in numerous activities ranging from water testing to
contaminated sites’ testing and anticipated regulation supporting increased levels of PFAS testing, as well
as increased levels of drinking water and wastewater testing, have been contributory factors. Eurofins
laboratories across Europe are at the forefront of PFAS testing, offering significantly increased capacity
as well as a greater number of compounds tested, lower detection limits and faster turnaround times,
including super-rush turnaround times where required in times of crisis. Throughout 2024, Eurofins
European Environment Testing teams have also delivered important innovation work in the areas of
testing for pharmaceuticals, drugs and other emerging contaminants in wastewater, a fast-growing market
that is expected to continue expanding due to an upcoming wastewater EU directive. New emerging
segments have also contributed to growth, particularly biofuel and biomass testing, compost and waste
testing, indoor air and mould testing, environment DNA testing and testing for the identification of
microplastics. The strong operational performance of the European Environment Testing laboratories, the
acceleration of ongoing lean and automation programmes, digitalisation, and strong customer-focussed
mindset have not only supported growth but also improved profitability across the Eurofins Environment
Testing network in Europe. Further benefits attributed to the continuation of already engaged productivity
programmes, including footprint rationalisation, the completion of the roll-out of next-generation LIMS to
replace a diverse and costly set of legacy LIMS systems and the accelerated ramp up of automation
projects are expected to be realised by 2027.
• BioPharma Services in Europe experienced moderate growth in a market environment characterised by
diverse developments in 2024. On the one hand, BioPharma Product Testing (BPT) generated mid-single
digit organic growth
13
, supported by demand for biological testing met by recent capacity expansions.
Likewise, Medical Device Services (MDS) has also developed well resulting from a tighter integration and
collaboration between various sites in the MDS network. Additionally, despite being challenged by the
variability of individual studies, Eurofins businesses involved in clinical activities also performed well in
2024. On the other hand, Eurofins has been hampered by weaker funding for early-stage trials, though
some recovery is expected in 2025. Agroscience Services also experienced negative demand growth
related to reductions in client spending on research and development for agrochemicals. In terms of
profitability, volume growth, further implementation of pricing initiatives and ongoing cost adaptation
measures including footprint optimisation have driven margin improvement.
• The Clinical Diagnostics business in Europe continued taking measures in FY 2024 to improve its growth
and profitability. The expansion of Blood Collection Point (BCP) coverage in France continued as 32 new
BCPs were opened in FY 2024, adding to the 67 BCPs launched in 2022 and 2023. In Spain, operational
improvements have resulted in a normalisation of growth and improved profitability. The agreement to
acquire SYNLAB’s clinical diagnostics operations in Spain, expected to close in 2025, confirms the
Eurofins network’s commitment to providing the best clinical diagnostic testing services possible to the
Spanish market. Furthermore, volumes of specialised testing services such as clinical genetics and NIPT
grew well. In terms of operational performance, organisational changes undertaken in 2023, including
changes to leadership and network rationalisation following the winding down of COVID-19 testing, have
helped to improve profitability, while digitalisation initiatives are actively supporting productivity. Financial
results for the Clinical Diagnostics businesses in Europe were also bolstered by the discontinuation of
business activities in Belgium, Sweden and Portugal as part of the previously announced ongoing re-
evaluation by Eurofins of some of its more marginal activities. Further productivity measures are planned
for 2025 to support profitability and counter the effects of the reimbursement cuts of September 2024 to
routine clinical testing in France. On the other hand, tariff agreements in France decided in December
2024 foresee no price adjustments in 2025 and slightly positive price adjustments independent of volume
development in 2026 and 2027.
North America
• Reported revenues increased year-on-year by 6.1%, supported by steady organic growth
13
in the Core
Business of 3.6% and contributions from acquisitions, in particular Ascend Clinical and Infinity
Laboratories.
FINANCIAL AND OPERATING REVIEW
37
• The Food and Feed Testing business in North America continued to grow strongly in 2024 supported by
steady demand and market share gains driven by new start-up microbiology laboratories in Missouri,
Idaho, California, Washington and Nebraska to address the stringent turnaround time requirements of
meat and produce customers. Another noteworthy development that has driven growth is Eurofins Food
and Feed Testing’s selection as one of three third-party testing organisations to support Amazon’s
requirement for certificates of authenticity from sellers of dietary supplements on Amazon’s platform. In
addition to volume growth and mix enhancement due to higher value-added testing, pricing attainment,
rush pricing, and normalising inflation also contributed to improving profitability. Furthermore, the
completion of the consolidation of activities formerly performed by Barrow-Agee (acquired in 2022 and
based in Memphis, Tennessee) into the Des Moines hub laboratory improved overall capacity utilisation
and drove profitability. Similar benefits were realised from the consolidation of operations previously
performed at the Naples, Florida and King City, California sites.
• In 2024, Eurofins Environment Testing in North America achieved double-digit organic growth
13
and a
record level of EBITDA
3
and EBITDA
3
margins. Strong organic growth
13
was generated across all sectors
of Environment Testing including traditional chemistry, contaminated sites, air and stack testing, built
environment testing and work for government agencies and municipalities. Eurofins Environment Testing
in North America has continued to generate substantial growth and has sustained its leadership position
in the PFAS testing market, boasting over 100 dedicated instruments across a hub and spoke network
covering the U.S. and Canada that demarcates between drinking water testing, contaminated site testing
and air testing. Upgrades performed in 2024 in PFAS laboratories in Sacramento, California, South Bend,
Indiana, Cleveland, Ohio, Lancaster, Pennsylvania and Ottawa, Ontario are expected to support further
volume growth. Additional growth in the coming years is expected in the area of microplastics testing, for
which Eurofins’ Sacramento, CA laboratory has been fully validated and began accepting commercial
samples in 2024. Eurofins also continues to play a leading role in the consolidation of the Environment
Testing market, completing seven acquisitions across North America. In terms of profitability, a year-on-
year margin improvement of 300bps was driven by the roll out of test methods and process optimisations
(i.e., solvent reduction, robotics, automation, logistics), consumable costs management through central
purchasing initiatives and digitalisation (i.e., Electronic Chain of Custody, LIMS enhancements). Looking
forward, facility upgrades to add capacity and improve efficiency will continue with the new Chicago,
Illinois laboratory, set to open in Q1 2025, while a new campus acquired in Sacramento, California will
accommodate a specialty hub laboratory that brings together the existing Eurofins Air Toxics and
Sacramento laboratories. Major upgrades are also planned for laboratories in Lancaster, Pennsylvania,
Houston, Texas and St. Louis, Missouri. Additional upgrades from a sustainability perspective involving
solar panels and energy efficiency are either in progress or scheduled for 2025 at locations including Los
Angeles, California (two sites), Houston, Texas and Cleveland, Ohio.
• BioPharma Services revenues in North America remained resilient throughout 2024. Overall funding
levels have shown promising growth, as a gradual but steady improvement in activity is being observed.
Discovery Services continued to show signs of recovery, with demand strong in Q4 2024 and an improving
pipeline evident for 2025. Demand and pipelines in BioPharma Product Testing remained solid, as the
scope continues to benefit from its extensive portfolio of services and very broad geographic coverage.
On the other hand, Central and Bioanalytical Laboratories’ revenues declined following the early
termination of several highly successful trials. Recovery in these activities is expected to materialise next
year, with larger programmes partly already contracted expected to support a strong rebound in the
second half of 2025 and 2026. In CDMO, growth was strong in H2 2024 as Eurofins CDMO Alphora’s new
2,000L scale plant came fully online. Bookings for 2025 are robust in this segment, indicating increased
activity as compared to the last couple of years. Profitability continues improving across most areas of the
business, supported by cost savings and measures to optimise personnel costs. Meanwhile, investments
in future growth opportunities continue as Eurofins positions its businesses for strong future growth as
market conditions improve.
• During the reporting period, Eurofins closed the acquisition of Ascend Clinical, LLC (‘Ascend’). Operating
a state-of-the-art laboratory in Sunnyvale, California and employing 170 staff, Ascend is the largest
independent laboratory for kidney dialysis testing in the United States. This acquisition further reinforces
the Eurofins network’s footprint in transplant testing and associated renal care, broadening its clinical
client base and growing its exposure to this promising segment. Since its acquisition, Ascend has
introduced improvements to its mobile and web applications that minimise labour-intensive tasks such as
rescheduling and relabelling, enhancing productivity and the level of service provided to clients.
Rest of the World
FINANCIAL AND OPERATING REVIEW
38
• Core Business revenues grew organically year-on-year by +7.8% due to strong business development
across many countries and activities.
• In Asia, Eurofins’ Food and Feed Testing business delivered robust double-digit organic growth
13
through
deeper penetration of local markets, winning sizeable contracts, increasing work with local governments,
and ramping up start-up activity. Growth was also supported by a number of initiatives across the region
that leveraged Eurofins’ international food sector client relationships, farm to fork testing services, and
collaboration and synergies across Eurofins’ Asian network.
• The Asia Environment Testing business line now offers PFAS testing from laboratories in Japan, Korea,
Taiwan and Vietnam, while microplastics testing is now offered in Vietnam. Additionally, two Environment
Testing acquisitions were completed in Japan.
• In BioPharma, the BioPharma Product Testing business line generated strong organic growth
13
in Asia,
supported by a site upgrade in Bengaluru, India. The upgraded 2,500 sqm facility facilitates a
comprehensive suite of analytical, microbiology and stability testing services and has Establishment
Inspection Report (EIR) clearance from the U.S. Food and Drug Administration. Start-up sales in China
and major customer renewals in Japan also supported the BioPharma Product Testing business line’s
growth in Asia. On the other hand, CDMO in India, early-stage clinical activities and Agroscience
experienced some headwinds in terms of growth and profitability H2 2024.
• The Clinical Diagnostics business line delivered solid growth in Asia stemming from strong demand in
Japan, Malaysia, Singapore and Vietnam. This was driven by a surge in demand for Non-Invasive
Prenatal Testing (NIPT) and Preimplantation Genetic Testing (PGT) in Japan and in Vietnam. On the
other hand, Eurofins discontinued some small Clinical Diagnostics activities in Japan and Thailand.
• In Australia, the BioPharma Product Testing business line developed well and expanded its range of
services. In Environment Testing, the Melbourne Australia Microplastics laboratory, the first to be
accredited globally to ISO 17025, was awarded the National Association for Testing Authorities (NATA)
Excellence award in June 2024 for Technical Infrastructure and Innovation.
• After more muted business conditions in Asia due to softness in consumer spending in many regions of
the world related to high inflation experienced in 2023, demand from customers for Consumer and
Technology Products Testing has gradually rebounded in numerous countries, in particular in China.
Growth experienced by Eurofins in the region was also supported by the expansion of testing capabilities
related to the Restricted Substances List (RSL) and PFAS in softline and hardline products. Eurofins
Electrical and Electronics’ (E&E) testing capabilities expanded in Asia in 2025, adding Medical Device
Testing services and complementing expansions in the U.S. and Europe. In addition, Eurofins companies
were able to win over 60 new global nominations from leading U.S. and European retailers and brands
for softlines and hardlines testing.
• In Latin America, Food and Feed Testing delivered strong results in terms of growth, aided by acquisitions
in Brazil and Columbia. On the other hand, portfolio optimisation measures have resulted in the winding
down of non-profitable operations, such as Clinical Diagnostics operations in Brazil and all business
activities in Argentina.
• In the Middle East, Ajal laboratories continued to grow well in its core Food and Feed Testing business,
winning several new contracts with the Ministry of Agriculture and enhancing its pesticides and specialised
services offering. The situation was more varied in Clinical Diagnostics related activity, as Eurofins
continues investing in its presence in Saudi Arabia while winding down operations in the United Arab
Emirates.
Table 4: Breakdown of Revenue by Area of Activity
€m
FY 2024
As % of
total
FY 2023
As % of
total
Y-o-Y
variation
%
Organic
growth in
the Core
Business*
Life
2,869
41%
2,607
40%
+10.0%
+7.4%
BioPharma
2,010
29%
1,970
30%
+2.0%
+0.9%
Diagnostic Services &
Products
1,370
20%
1,276
20%
+7.4%
+4.3%
Consumer & Technology
Products Testing
702
10%
661
10%
+6.2%
+6.4%
FINANCIAL AND OPERATING REVIEW
39
* Excluding COVID-19 related clinical testing and reagents revenues
Activities are defined as follows:
• Life, consisting of Food and Feed Testing, Agro Testing and Environment Testing
• BioPharma, consisting of BioPharma Services, Agrosciences, Genomics and Forensic Services
• Diagnostic Services and Products, consisting of Clinical Diagnostics Testing and In Vitro Diagnostics (IVD)
Solutions
• Consumer and Technology Products Testing, consisting of Consumer Product Testing and Advanced
Material Sciences
Life (consisting of Food and Feed Testing, Agro Testing and Environment Testing)
• Food and Feed Testing in Europe saw a recovery in growth in most countries, supported by pricing
attainment as well as some volume increases driven by product development activity by food producers.
• The Food and Feed Testing business in North America continued to grow strongly in 2024 supported by
steady demand and market share gains driven by new start-up microbiology laboratories to address the
stringent turnaround time requirements of meat and produce customers.
• In Rest of the World, Eurofins’ Food and Feed Testing business in Asia delivered robust double-digit
organic growth
13
through deeper penetration of local markets, winning sizeable contracts, increasing work
with local governments, and ramping up start-up activity. In Latin America, Food and Feed Testing
delivered strong results in terms of growth, aided by acquisitions in Brazil and Columbia.
• The Environment Testing business in Europe set new sales records in 2024, driven by market share gains
on the back of strong turnaround time performance, customer service and offerings across multiple
countries, as well as pricing initiatives.
• Strong organic growth
13
was generated across all sectors of Environment Testing in North America
including traditional chemistry, contaminated sites, air and stack testing, built environment testing and
work for government agencies and municipalities. Eurofins has continued generating substantial growth
while sustaining its leadership position in the PFAS testing market.
• In Rest of the World, the Asia Environment Testing business line expanded its PFAS testing offering to
laboratories in Japan, Korea, Taiwan and Vietnam, while microplastics testing is now offered in Vietnam.
Additionally, two Environment Testing acquisitions were completed in Japan.
Biopharma (consisting of BioPharma Services, Agrosciences, Genomics and Forensic Services)
• BioPharma Services in Europe experienced moderate growth in a market environment characterised by
diverse developments in 2024. On the one hand, BioPharma Product Testing (BPT) remained stable,
supported by demand for biological testing services served by recent capacity expansions. Likewise,
Medical Device Services (MDS) has also developed well resulting from tighter integration and
collaboration between various sites in the MDS network. On the other hand, BioPharma Bioanalysis has
been hampered by weaker funding for early-stage trials, though some recovery is expected in 2025.
• BioPharma Services revenues in North America remained resilient throughout 2024. Overall funding
levels have shown promising growth, as a gradual but steady improvement in activity is being observed.
Discovery Services continued to show signs of recovery, with demand strong in the fourth quarter and an
improving pipeline evident for 2025. Demand and pipelines related to BioPharma Product Testing
remained solid, as the scope continues to benefit from its extensive portfolio of services and very broad
geographic coverage. On the other hand, Central and Bioanalytical Laboratories’ revenues declined
following the early termination of several highly successful trials.
• In Rest of the World, the BioPharma Product Testing business line generated robust organic growth
13
in
Asia, supported by a site upgrade in Bengaluru (India). In Australia, the BioPharma Product Testing
business line launched new services to the pharmaceutical industry resulting from the transfer of know-
how from Eurofins activities in other regions.
• Another difficult area has been Agroscience Services, which has experienced negative demand growth
related to reductions in client spending on research and development for agrochemicals due to uncertainty
regarding regulatory developments and markets. Eurofins’ Genomics business line continued its post-
COVID pivot towards activities related to genes, plasmids, biopharma and large-scale, high-throughput
end market applied genomics solutions.
• In Forensic Services, Eurofins completed the acquisition of Orchid Cellmark in the U.K.
FINANCIAL AND OPERATING REVIEW
40
Diagnostic Services & Products (consisting of Clinical Diagnostics Testing and In Vitro Diagnostics (IVD)
Solutions)
• The Clinical Diagnostics Business in Europe realised stable growth in 2024. The expansion of Blood
Collection Point (BCP) coverage in Europe continued as 32 new BCPs were opened, adding to the 67
BCPs launched during 2022 and 2023. In Spain, operational improvements have resulted in a
normalisation of growth and improved profitability. Furthermore, volumes of specialised testing services
such as clinical genetics and NIPT grew well.
• During the reporting period, Eurofins closed the acquisition of Ascend Clinical, LLC (‘Ascend’). Operating
a state-of-the-art laboratory in Sunnyvale, California and employing 170 staff, Ascend is the largest
independent laboratory for kidney dialysis testing in the United States.
Consumer & Technology Products Testing (consisting of Consumer Product Testing and Advanced
Material Sciences)
• After more muted business conditions in Asia due to softness in consumer spending in many regions of
the world related to high inflation in 2023, demand from customers for Consumer Product Testing has
gradually rebounded in numerous countries, in particular in China.
• Additionally, Eurofins companies were able to win over 60 new global nominations from leading U.S. and
European retailers and brands for softlines and hardlines testing.
3.3 Infrastructure Programme
In 2024, Eurofins achieved a net surface increase of its laboratories of 98,000 m², reaching a total surface area of
1,832,000 m². A total of 79,000 m² of laboratory, office, and storage space was added through the delivery of
building projects as well as building acquisitions, while leased surfaces decreased by 21,000 m². Through
acquisitions in the M&A scope, Eurofins has added additional surface area of 40,000 m².
As of the end of 2024, Eurofins occupies more than 2,000 sites throughout the world (laboratories, offices,
warehouses, phlebotomy sites and drop-off points). Of the total net floor area of 1,832,000 m², 86% (1,571,000 m²)
comprises laboratory space (+7% vs 2023). The breakdown of ownership is as follows:
• 52.4% (ca. 959,000 m²) is rented from third-party landlords (2023: 54.4%, 2018: 64.9%);
• 34.5% (ca. 633,000 m²) is owned by Eurofins (2023: 31.7%, 2018: 19.3%); and
• 13.1% (ca. 240,000 m²) is rented from related parties (2023: 13.9%, 2018: 15.8%).
The continuous increase in the proportion of surface area is part of Eurofins’ strategy to lease less and own more
of its strategic sites. In 2024, the net floor area of Eurofins-owned premises increased by 15% (83,000 m²) vs 2023
to reach 633,000 m². Since 2018, the net floor area of buildings owned by Eurofins has increased by more than
160% from 240,000 m² to 633,000 m². In 2024, 18,000 m² of Eurofins’ current sites were renovated to bring them
to the highest standard. Projects completed in 2024 are described in the following paragraphs.
Eurofins Advinus has made significant progress at its new 20,000 m² facility in Bangalore, India, supporting the
growth of BioPharma Services in Asia. The exterior construction was completed in April 2024, with 2,000 m² now
occupied by BPT Laboratories. The remaining fitouts, originally planned for 2024, have been postponed and will
resume mid-2025, with completion targeted by year-end and full occupancy to be completed in early 2026. Once
complete, the facility will house state-of-the-art bioanalytical laboratories, offering end-to-end drug development
services. Its sustainable design ensures a well-lit, ventilated, and welcoming work environment.
In Louisville, Kentucky, a new two-storey 6,500 m² facility has been successfully completed for Eurofins Genomics
with the support of the U.S. government (Department of Air Force, in coordination with the Department of Health
and Human Services). The site is located on 3.63 acres of land adjacent to an existing Eurofins laboratory site. The
new strategic Eurofins site will employ approximately 100 personnel and will support the expansion of production
capacity for oligonucleotides with a focus on diagnostics purposes, in alignment with the global strategy of Eurofins
Genomics. The laboratory boasts state-of-the-art lean design and accommodates specific market requirements,
such as ensuring separation between Research Use Only (RUO) and Good Manufacturing Practice (GMP)
production from start to finish. This mitigates the risk of cross contamination between sequences, which is critical
for molecular diagnostics and clinical companies developing commercial assays.
FINANCIAL AND OPERATING REVIEW
41
In July 2024 improvements were completed at the 10,200 m² site in Horsham, Pennsylvania that Eurofins had
acquired in late 2021. The site brings together four Eurofins entities to form the new Horsham (Philadelphia)
Campus: Gold Standards Diagnostics Horsham, Eurofins Environment Testing Philadelphia, Eurofins Clinical Trials
Supplies and Eurofins NA Corporate Development. With a combination of laboratory space, manufacturing of test
kits designed for environmental and food safety applications, along with microbiological media, and GMP
primary/secondary packaging, kitting and warehousing for clinical trials, this new site serves a diverse range of
Eurofins’ customer needs.
Eurofins DiscoverX Products acquired a 5,574 m² building in Fremont, California. This has been renovated to a
state-of-the-art laboratory to support both product development and manufacturing as well as a service arm for
Eurofins Discovery services. Fit for purpose, the new facility provides larger dedicated laboratory space and
facilitates increased storage capacity and improved workflows. Furthermore, as part of Eurofins Discovery’s
California solar panel project initiative, Fremont was one of many Eurofins sites to install solar panels, enabling the
location to generate approximately 76% of its energy needs on site.
Eurofins BioPharma Product Testing France celebrated the completion of a major climatic chamber for GMP
pharmaceutical storage in Saint Augustin. The 1,768 m² expansion to the Saint Augustin laboratory site will facilitate
the addition of new activities and service offerings. The site incorporates many ESG-related initiatives including
solar panels, heat pumps, LED lighting and efficient insulation of the exterior shell.
In Tamworth, U.K., a large 5,000 m² laboratory and office facility was completed following a 2-year long renovation.
The facility will house Eurofins Forensic Services’ operations, which were previously located on a smaller, leased
site. The Tamworth laboratory will be capable of state-of-the-art DNA recovery, drug analysis and elemental
analysis to complement projects performed by other Eurofins Forensic Services teams in Warrington and Feltham.
In addition, the facility provides office space for teams of expert reporters and the Workplace Drug Testing team.
The strategic site also contains conferencing facilities and warehouse space and provides ample opportunity for
potential future expansion.
Regarding the surface area leased by Eurofins, as of the end of 2024, annualised rent per m² for sites leased from
third parties stands at €146, in line with those leased from related parties which stands at €150.
When narrowing the comparison to laboratory sites only (90% of the surfaces leased from related parties), in
countries where lease agreements are made with both third-party landlords and related parties, the annualised rent
per m² for sites leased from third parties stands at €173, whereas those leased from related parties stands at €153.
In 2025 and 2026, Eurofins plans to add laboratories and operational space representing a total net floor area of
ca. 165,000 m². Eurofins is committed to continuing to invest significantly in its infrastructure to build the largest,
most modern and most efficient laboratory network in its industry.
3.4 Financial Review
Adjusted
1
EBITDA
3
was €1,552m in FY 2024, representing an adjusted
1
EBITDA
3
margin of 22.3% and a margin
improvement of 140bps vs FY 2023. The improvement was realised through a combination of pricing adaptations,
better capacity utilisation and cost efficiency initiatives.
FINANCIAL AND OPERATING REVIEW
42
Table 5: Separately Disclosed Items
2
€m
FY 2024
FY 2023
Mature
scope
14
Revenues
6,555
6,189
EBITDA
3
impact from one-off costs from network expansion,
integrations, reorganisations and discontinued operations, and
other non-recurring income and costs
-42
-38
Non-mature
scope
14
Revenues
396
325
EBITDA
3
impact from temporary losses and other costs related to
start-ups and acquisitions in significant restructuring
-71
-92
Total
Revenues
6,951
6,515
EBITDA
3
impact from Separately Disclosed Items
2
-113
-129
Separately Disclosed Items
2
(SDI) at the EBITDA
3
level decreased year-on-year to €113m (equivalent to 1.6% of
revenues, a 40bps decline year-on-year) and comprised:
• One-off costs from network expansion, integrations, reorganisations and discontinued operations, and
other non-recurring income and costs in the mature scope
14
totalled €42m and contain significant amounts
for the closure of two sites (one in Germany, one in the U.S.) and ongoing restructuring actions.
• Temporary losses and other costs related to start-ups and acquisitions in significant restructuring in the
non-mature scope totalled €71m, a reduction vs €92m in FY 2023. This decrease was primarily due to
improvements in profitability in many start-up activities, notably in the Genomics and In Vitro Diagnostics
(IVD) business lines as they continue making progress with post-COVID refocussing measures.
Reported EBITDA
3
improved by 17% year-on-year to €1,439m in FY 2024. In terms of Reported EBITDA
3
as a
proportion of revenues, the margin improved year-on-year by 180bps to 20.7% in FY 2024 vs 18.9% in FY 2023.
Table 6: Breakdown of Reported EBITDA by Operating Segment
€m
FY 2024
Rep. EBITDA
margin %
FY 2023
Rep. EBITDA
margin %
Y-o-Y
variation %
Europe
598
16.8%
463
14.0%
+29%
North America
721
27.1%
655
26.1%
+10%
Rest of the World
161
21.8%
139
19.8%
+16%
Other*
-41
-22
+87%
Total
1,439
20.7%
1,234
18.9%
+17%
* Other corresponds to Group Service Centres
In Europe, most countries experienced a robust improvement in margins, with a noticeable catch up in DACH
(Germany, Austria and Switzerland) resulting from price increases and volume growth, contained personnel costs,
reduced building costs and flat consumables costs. Margin also progressed positively in France despite tariff cuts
in the Clinical Diagnostics scope of 10 September 2024 in routine clinical testing, thanks to good volume growth,
sustained price increases in other segments, decreased building costs, reduced consumables costs, and contained
personnel costs. In other European countries, margin increases were driven by sustained price increases and good
volume growth, contained consumables costs, flat building costs and controlled personnel expenses.
In North America, strong volume growth in Environment Testing and Food Testing and sustained price increases,
along with controlled personnel costs and consumables costs, resulted in a 100bps year-on-year increase in
reported EBITDA margin.
In Rest of the World, the biggest contribution to profit growth came from Australia, China and Taiwan, while India,
Japan and Brazil were less dynamic. In terms of profitability, the sizeable year-on-year margin progression of
200bps resulted from strong volume growth and controlled personnel costs. Margins in Asia, Pacific and Middle
East were accretive to the Group.
Depreciation and amortisation (D&A), including expenses related to IFRS 16, increased by 5.6% year-on-year to
€597m. As a percentage of revenues, D&A stood at 8.6% of revenues in FY 2024, slightly lower than 8.7% of
revenues in FY 2023.
FINANCIAL AND OPERATING REVIEW
43
Net finance costs amounted to €127m in FY 2024, compared to €107m in FY 2023 due to higher interest expenses
for bonds, in particular due to the redemption of a €448m Eurobond in June 2024 with an annual fixed rate coupon
of 2.125% that was refinanced by a €600m senior unsecured Eurobond issued in August 2023 and due in
September 2030 that bears an annual fixed rate coupon of 4.75%. Overall, Eurofins’ average interest rate on its
financial borrowings in FY 2024 was approximately 3.3%.
Due to the increase in profitability, the income tax expense increased to €149m in FY 2024 vs €116m in FY 2023.
However, the income tax rate was slightly lower at 26.9% in FY 2024 vs 27.3% in FY 2023.
Reported net profit
7
in FY 2024 stood at €405m (5.8% of revenues and 32% higher than €308m in FY 2023),
resulting in a total reported basic EPS
8
of €1.87 vs €1.33 in FY 2023.
3.5 Cash Flow & Financing
Table 7: Cash Flows Reconciliation
€m
FY 2024
FY 2023
Y-o-Y
variation
Y-o-Y
variation
%
Net Cash from Operations
1,319
1,018
+301
+30%
Net capex
9
(i)
-518
-544
+25
+5%
Net operating capex (includes LHI)
-365
-392
+27
+7%
Net capex for purchase and development of
owned sites
-154
-152
-2
-1%
Free Cash Flow to the Firm before investment in
owned sites
16
954
626
+328
+52%
Free Cash Flow to the Firm
10
801
474
+326
+69%
Acquisitions spend and other investments (ii)
-343
-158
-185
-117%
Proceeds from disposals of subsidiaries, net (iii)
-1
7
-8
-
Other (iv)
16
13
+3
-
Net Cash from Investing (i) + (ii) + (iii) + (iv)
-846
-681
-165
-24%
Net Cash from Financing
-1,090
414
-1,503
-
Net increase / (decrease) in Cash and cash
equivalents and bank overdrafts
-608
738
-1,345
-
Cash and cash equivalents at end of period
and bank overdrafts
613
1,221
-608
-50%
Net cash provided by operating activities recorded a considerable increase in FY 2024 to €1,319m vs €1,018m in
FY 2023 thanks to higher profitability and a decrease in net working capital
12
intensity. This ratio stood at 3.8% of
the Group’s revenues at the end of December 2024, a decrease of 130bps vs 5.1% at the end of December 2023.
The year-on-year improvement resulted from a sizeable decrease in Days of Sales Outstanding (54 in FY 2024 vs
59 in FY 2023) and a slight increase in Days of Payables Outstanding (61 in FY 2024 vs 60 in FY 2023).
Cash generation more than adequately financed net capex
9
of €518m in FY 2024 vs €544m in FY 2023. After
considering these investments, Free Cash Flow to the Firm
10
(FCFF) was €801m in FY 2024 vs €474m in FY 2023.
Cash conversion (FCFF
10
/ Reported EBITDA
3
) improved strongly to 56% in FY 2024 from 38% in FY 2023.
FINANCIAL AND OPERATING REVIEW
44
The net capex
9
amount includes significant growth capex and discretionary investments as part of Eurofins’
programmes to own its laboratory sites, which totalled €154m in FY 2024 vs €152m in FY 2023. Excluding these
investments in owned sites, FCFF before investment in owned sites
16
was €954m in the reporting period, a
substantial improvement vs €626m in the prior year period.
During FY 2024, the Group completed 31 business combinations including 18 acquisitions of legal entities and 13
acquisitions of assets. Net cash outflow on acquisitions completed during the period and in previous years (in case
of payment of deferred considerations) amounted to €343m.
As part of its share buy-back programme, Eurofins allocated €290m to repurchase 5,850,000 of its own shares in
FY 2024 at an average price of €49.60, representing 3.0% of its share capital. Note that the cash flow impact in FY
2024 of €272m also includes inflows received from the exercise of stock options and outflows related to the liquidity
contract but excludes the settlement of share repurchases performed in the final days of December 2024.
Excluding the substantial cash allocated for opportunistic share repurchases, Eurofins was able to self-finance all
its capital commitments from its own cash generation in FY 2024.
The combination of FCFF
10
as well as the aforementioned acquisitions and share buy-backs resulted in a net debt
11
figure of €2,996m at the end of December 2024. The corresponding leverage (net debt
11
to last 12 months proforma
adjusted
1
EBITDA
3
) was 1.9x, an improvement of 0.1x vs the end of December 2023 and at the mid-point of
Eurofins’ 1.5x-2.5x target range. Upcoming maturities include Schuldschein loans totalling €234m maturing in July
and October 2025 respectively, and €400m in hybrid capital with a first call date on 13 November 2025. Eurofins
also possesses a solid overall liquidity position, which includes a cash position of €613m as at 31 December 2024
as well as access to over €1bn of committed, undrawn mid-term (3-5 years) bilateral bank credit lines.
3.6 Start-up Programme
Start-ups or green-field laboratory projects are generally undertaken in new markets and, in particular, in emerging
markets, where there are often limited viable acquisition opportunities or in developed markets where Eurofins
transfers technology developed by its R&D and Competence Centres abroad or expands geographically to complete
its national hub and spoke laboratories network in an increasing number of countries.
In FY 2024, the Group opened 18 new start-up laboratories and 32 new start-up blood collection points (BCPs).
The 319 start-ups and 99 BCPs launched since 2000 have made material contributions to the overall organic
growth13 of the Group, accounting for 0.9% out of the 4.7% Core Business organic growth13 achieved in FY 2024.
Their EBITDA3 margin continued to progress while remaining dilutive to the Group.
Of the 319 start-ups and 99 BCPs the Group has launched since 2000, 60% are located in Europe, 14% in North
America and 26% in the Rest of the World, of which a significant number are in high growth regions in Asia. By
activity, 34% are in Life (Food and Feed Testing, Environment Testing), 17% in BioPharma, 41% in Diagnostic
Services & Products (including BCPs) and 8% in Consumer & Technology Products Testing.
3.7 Acquisitions
During FY 2024, the Group completed 31 business combinations consisting of 18 acquisitions of entities and 13
acquisitions of assets for a total investment of €343m.
Table 8: Acquisitions
In €m except otherwise stated
Part consolidated
in FY 2024
Part non-consolidated
in FY 2024
Total
Revenues
132
93
225
Adjusted
1
EBITDA
3
24
11
34
FTE
774
691
FINANCIAL AND OPERATING REVIEW
45
3.8 Divestments
During FY 2024, as part of its programme to review the benefit of continuing investments in some marginal activities,
the Group divested or discontinued some small businesses that contributed consolidated revenues of €7m in FY
2024 and €32m in FY 2023. The divestment or discontinuation of these businesses resulted in a loss on disposal
of €24m and net proceeds of -€1m.
3.9 Post-Closing Events
Business combinations
Since the beginning of 2025, the Group completed four business combinations. The total annual revenues of these
acquisitions amounted to approximately €6m in 2024 for an aggregate acquisition price of €9m. These acquisitions
employ over 30 employees.
FINANCIAL AND OPERATING REVIEW
46
3.10 Alternative Performance Measures (APMs)
1
Adjusted results – reflect the ongoing performance of the mature
14
and recurring activities excluding “separately
disclosed items”.
2
Separately disclosed items – include one-off costs from network expansion, integration and reorganisation,
discontinued operations, other non-recurring income and costs, temporary losses and other costs related to start-ups
and acquisitions undergoing significant restructuring, share-based payment charge and acquisition-related expenses,
net
5
, gains/losses on disposal of businesses, net finance costs related to borrowing and investing excess cash and
one-off financial effects (net of finance income), net finance costs related to hybrid capital and the related tax effects.
3
EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge and acquisition-
related expenses, net
5
and gain and loss on disposal of subsidiaries, net.
4
EBITAS – EBITDA less depreciation and amortisation.
5
Share-based payment charge and acquisition-related expenses, net – Share-based payment charge, impairment of
goodwill, amortisation of acquired intangible assets, negative goodwill, and transaction costs related to acquisitions as
well as income from reversal of such costs and from unused amounts due for business acquisitions.
6
EBIT – EBITAS less share-based payment charge and acquisition-related expenses, net
5
and gain and loss on disposal
of subsidiaries, net.
7
Net Profit – Net profit for owners of the Company and hybrid capital investors before non-controlling interests.
8
Basic EPS – basic earnings per share attributable to owners of the Company.
9
Net capex – Purchase, capitalisation of intangible assets, purchase of property, plant and equipment less capex trade
payables change of the period and proceeds from disposals of such assets.
10
Free Cash Flow to the Firm – Net cash provided by operating activities, less Net capex.
11
Net debt – Current and non-current borrowings, less cash and cash equivalents.
12
Net working capital – Inventories, trade receivables and contract assets, prepaid expenses and other current assets
less trade accounts payable, contract liabilities and other current liabilities excluding accrued interest receivable and
payable.
13
Organic growth for a given period (Q1, Q2, Q3, Half Year, Nine Months or Full Year) – non-IFRS measure calculating
the growth in revenues during that period between 2 successive years for the same scope of businesses using the
same exchange rates (of year Y) but excluding discontinued operations.
For the purpose of organic growth calculation for year Y, the relevant scope used is the scope of businesses that have
been consolidated in the Group's income statement from the previous financial year (Y-1). Revenue contribution from
companies acquired in the course of Y-1 but not consolidated for the full year are adjusted as if they had been
consolidated as of 1st January Y-1. All revenues from businesses acquired since 1st January Y are excluded from the
calculation. Also, all revenues from discontinued activities / disposals in both the previous financial year (Y-1) and year
Y are excluded from the calculation.
14
Mature scope: excludes start-ups and acquisitions in significant restructuring. A business will generally be considered
mature when: i) The Group’s systems, structure and processes have been deployed; ii) It has been audited, accredited
and qualified and used by the relevant regulatory bodies and the targeted client base; iii) It no longer requires above-
average annual capital expenditures, exceptional restructuring or abnormally large costs with respect to current
revenues for deploying new Group IT systems. The list of entities classified as mature is reviewed at the beginning of
each year and is relevant for the whole year.
15
Discontinued activities / disposals: discontinued operations are a component of the Group’s Core Business or product
lines that have been disposed of, or liquidated; or a specific business unit or a branch of a business unit that has been
shut down or terminated, and is reported separately from continued operations.
16
FCFF before investment in owned sites: FCFF less net capex
9
spent on purchase of land, buildings and investments
to purchase, build or modernise owned sites/buildings (excludes laboratory equipment and IT).
17
Free Cash Flow to Equity: Free Cash Flow to the Firm
10
, less disposal/(acquisition) of investments, financial assets and
derivative financial instruments, net, repayment of lease liabilities and after interests and premium paid net of interest
received. Free cash flow to Equity does not take into account the dividends paid to shareholders and non-controlling
interests as well as earnings paid to hybrid capital holders.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
47
4 Environmental, Social and
Governance
Table of Contents GRI Standard/Disclosure: 3-2
4.1 Introduction ...................................................................................................................... 49
4.1.1 2024 Highlights ......................................................................................................... 49
4.1.2 A Conversation with our CEO, Dr. Gilles Martin ....................................................... 51
4.2 General Information ......................................................................................................... 53
4.2.1 Overview ................................................................................................................... 53
4.2.2 Strategy ..................................................................................................................... 54
4.2.3 Basis of the Sustainability Statement ....................................................................... 55
4.2.4 Vision, Mission and Values ........................................................................................ 57
4.2.5 Sustainability at Eurofins – Executive Summary ....................................................... 58
4.2.6 Eurofins’ Contribution to United Nations Sustainable Development Goals ............. 63
4.2.7 Materiality ................................................................................................................. 66
4.3 Environmental ................................................................................................................... 71
4.3.1 Safeguarding the Environment through our Products and Services ......................... 71
4.3.2 Eurofins EU Taxonomy Reporting ............................................................................. 73
4.3.3 Climate Change ......................................................................................................... 79
4.3.4 Pollution and Waste Management ........................................................................... 97
4.3.5 Water and Marine Resources ................................................................................... 99
4.3.6 Biodiversity & Ecosystems ...................................................................................... 100
4.3.7 Resource Use and Circular Economy ...................................................................... 101
4.4 Social ............................................................................................................................... 103
4.4.1 Equality Driving Excellence ..................................................................................... 105
4.4.2 Employment Creation ............................................................................................. 110
4.4.3 Human Capital Development .................................................................................. 111
4.4.4 Training and Skills Development ............................................................................. 112
4.4.5 People, Health & Safety .......................................................................................... 116
4.4.6 Giving Back .............................................................................................................. 119
4.5 Governance ..................................................................................................................... 123
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
48
4.5.1 Corporate Culture ................................................................................................... 123
4.5.2 Sustainability Governance ...................................................................................... 124
4.5.3 Corporate Governance ............................................................................................ 128
4.5.4 Sustainable Procurement and Supply Chain Management .................................... 128
4.5.5 Honesty, Integrity and Human Rights ..................................................................... 129
4.5.6 Enterprise Risk Management .................................................................................. 131
4.5.7 Quality Management .............................................................................................. 141
4.5.8 Information and IT Operation Security ................................................................... 144
4.5.9 Product & Service Quality ....................................................................................... 146
4.6 Data Tables ...................................................................................................................... 148
4.6.1 Eurofins Data ........................................................................................................... 148
4.6.2 Global Reporting Initiative (GRI) Disclosures .......................................................... 150
4.6.3 Sustainability Accounting Standards Board (SASB) Disclosure Topics and Accounting
Metrics ...................................................................................................... 156
4.6.4 Aligning to the Task Force on Climate-Related Financial Disclosures (TCFD)
framework................................................................................................................. 156
4.6.5 Eurofins EU Taxonomy additional information ....................................................... 157
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
49
4.1 Introduction
4.1.1 2024 Highlights
For the FY2024, the Eurofins Network is proud to share the following key achievements and actions
on our Environmental, Social & Governance practices:
Environmental:
• Achieved carbon intensity (tCO
2
e/mEUR)
reduction (market-based):
- Ca. -7.1% vs 2023
- Ca. -32% vs 2019 (baseline year)
• In early 2024, Eurofins committed to setting near-
term network-wide emission reduction targets in
line with the Science Based Targets initiative
(SBTi).
• Eurofins Air Testing France was the first laboratory in Europe to receive accreditation for PFAS
testing in air emissions using the OTM45 method. Known as "forever pollutants," PFAS are
persistent chemicals harmful to human health and ecosystems. By providing best-in-class,
reliable analyses, Eurofins laboratories support environmental health and support clients to
meet their sustainability commitments.
Social:
• In 2024, the Eurofins network was recognised for
the fourth year in a row as a Leader in Diversity by
the Financial Times and Statista, for
demonstrating leadership in advancing diversity,
equality and inclusion in the workplace. Eurofins
was also featured on Forbes’ “World’s Top
Companies for Women,” list, highlighting the
Group as an inclusive workplace for women. The
list is drafted based on employee feedback, public
opinion, and company data. In 2024, for the first
time, Eurofins was recognised as a “2024 Best
Place to Work for Disability Inclusion” by
Disability:IN.
• Staying true to our commitment to equal opportunities and merit-based selection, women's
representation in the Eurofins Network increased to 36% in National Business Line and
Business Unit leadership (up from 30% in 2022) and to 57% of all employees (up from 55% in
2022).
• In 2024, the Eurofins Foundation funded 75 projects, selected from 886 applications, that
address challenges like health, education, and environmental sustainability. Examples include
Vita’s sustainable cookstoves in Ethiopia, and Science from Scientists’ STEM programmes in
the U.S.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
50
Governance:
• Continued to earn solid ratings from ESG rating agencies during 2024: over 50% of Eurofins
entities participating in EcoVadis assessments in 2024 scored a Silver medal or higher.
• Since 2019, Eurofins has improved its Bitsight score consistently and remains on a mature
level. An external assessment of 200+ cyber security controls done by CyberVadis, a security
firm, scored Eurofins at 952/1000 points (vs 817 in 2023), reflecting our ongoing commitment
to robust cyber security practices.
• With a Eurofins Network-wide NPS of 70.9 Eurofins laboratories successfully met their 2024
target of a score of 65, reaffirming our laboratories’ unwavering commitment to customer focus.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
51
4.1.2 A Conversation with our CEO, Dr. Gilles Martin
GRI Standard/Disclosure: 2-22, 3-2
What is Eurofins’ overall approach to sustainability and what actions are being taken
to achieve results?
I believe that sustainability is at the heart of what Eurofins companies do. We are guided by our vision to be the
Global Leader in “Testing for Life”, as well as our mission of contributing to a healthier and safer world. Our core
values also provide a strong foundation for the many Environmental, Social and Governance (ESG) initiatives of
Eurofins companies.
As you will note, we have made significant changes in the reporting format of our 2024 ESG Report, which signals
the beginning of our journey towards aligning with the EU Corporate Sustainability Reporting Directive (CSRD).
These changes include enhanced transparency in ESG disclosures, with the introduction of the Double Materiality
assessment as a key addition this year, marking an important step in our ESG compliance journey.
The Board-appointed Sustainability and Corporate Governance Committee continues to work closely with the
Executive Sustainability Committee to assess the effectiveness of our sustainability strategy as it relates to the
environmental impact of our business operations, prevention of climate risk, and social topics in our materiality
matrix. In addition, two of the Sustainability and Corporate Governance Committee members on the Board of
Directors completed ESG diploma and certification courses to ensure we have enhanced ESG knowledge and
skills represented at Board level.
Everything we do is towards a healthier and safer world, and when it comes to sustainability specifically, many
Eurofins companies are innovating and extending their services to help clients in various sectors to reduce their
environmental impact. Throughout this report, we highlight some of this work as an ESG enabler, as part of our
aim not only to provide essential testing services but also to establish long-term collaborative partnerships that
support our customers on their own ESG journeys. Eurofins Sustainability Services brings together the Eurofins
Network’s wide range of sustainability-related service offerings under one roof, such as microplastics testing,
wastewater testing, biodegradability and recyclability assessments, supply chain audits, life cycle analysis, and
many other services. This facilitates an easy connection between our global customers and the Eurofins companies
best equipped to meet their testing needs.
I’m pleased that our initiatives aimed at ESG improvement continue to be acknowledged by the leading global ESG
rating agencies – our scores with agencies such as MSCI, Sustainalytics, ISS, and S&P Global all remained solid
in 2024.
In terms of carbon footprint reduction, what key actions were taken by the Eurofins
Network of Companies in 2024?
An exciting development that was finalised in early 2024 was that Eurofins signed a commitment with the Science-
Based Targets initiative (SBTi), a leading climate action group. In doing so, we have joined the growing group of
companies setting ambitious climate targets that are science-based. Our commitment to the SBTi is important to
many of our customers, so we were pleased to formalise this, as part of our efforts to reduce our carbon footprint
through sustainable business practices.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
52
In 2020, we set an ambitious goal of achieving carbon neutrality by the end of 2025, and in 2024 we made significant
progress towards this. We also reduced our carbon emissions intensity (market-based) per million Euro revenue
by ca. 7.1% in 2024, compared to 2023, and by ca. 32% versus our baseline year (2019). Early in 2024, we started
our participation in a groundbreaking collaboration with Thermo Fisher Scientific for a 36-megawatt stake in the
Serbal Solar Project, a huge 127-megawatt solar farm in Spain, developed by ib vogt GmbH. This strategic
investment is a pivotal step towards our carbon neutrality goal. It will significantly reduce carbon emissions across
the Eurofins Network, ensuring that more than 80% of our addressable European and 40% of our global electricity
consumption are powered by green electricity. Today, 27% of electricity consumed by Eurofins sites globally is
derived from renewable sources.
Can you highlight how the Eurofins Network of Companies contributes to the social
pillar of ESG actions (e.g., Employee Health & Safety, Equality Driving Excellence
(EDE), and Community Involvement)?
It is incredibly important to me that Eurofins companies are not just places where employees can grow in their
careers and contribute to the success of their clients and our network, but also places where our colleagues
genuinely enjoy working and feel happy. By nature, the Eurofins Network is diverse, with employees in 60 countries,
who are selected, welcomed and developed based on merit. I’m proud that our companies prioritise a spirit of
inclusion that empowers everyone to achieve their best. To support these values, the Eurofins Equality Driving
Excellence (EDE) programme was established to offer central initiatives and support local leaders in their own
equality advancements.
Each year, an annual EDE survey is conducted internally to learn about the experiences and perceptions of our
global workforce and help ensure a great workplace for all. The results are used to track the progress of our EDE
efforts, as well as local equality-based initiatives, and to support the advancement of these efforts going forward. I
am very pleased to see a positive rating and upward trend in all feedback ratings in 2024, versus the previous year.
The EDE team continues to work with Eurofins company leaders and EDE Ambassadors to support local efforts,
share best practices, and continue driving advancements where needed most, with the core principle of driving our
excellence through equality. Thanks to these efforts combined, Eurofins was recognised in 2024 as a Leader in
Diversity by the Financial Times for the fourth year in a row and featured on the Forbes & Statista “World’s Top
Companies for Women” list.
How has Eurofins strengthened its ESG leadership and impact in 2024, and what are
your key takeaways for the future?
A key accomplishment was the creation of a new ESG Performance Management internal site accessible to all
Eurofins employees. Resources on this hub help to educate and inform our network about Eurofins’ ESG objectives
and successful internal initiatives, as well as share best practices – for example, on Health & Safety or carbon
footprint reduction – enabling our Leaders to further improve their local ESG performance. I believe that leveraging
this platform and the collaborative efforts of our network has contributed to over 50% of the Eurofins entities
participating in EcoVadis assessments having received a Silver medal or higher in 2024.
All Eurofins Leaders are making it their duty to proactively reduce the environmental impact that their companies’
essential operations have on the planet. This report spotlights several examples of sustainable changes made
within laboratories in our network, from renewable energy installations to enhanced recycling measures.
Furthermore, we have highlighted many employee-driven, local initiatives throughout that have had a truly positive
impact on carbon footprint reduction, biodiversity protection, health and wellbeing, and local communities
Behind the scenes, we also continually work to ensure that all of our Leaders can focus on advancing the
performance of their companies, be it ESG-related or otherwise, smoothly and securely. For instance, we rely on
state-of-the-art technology to deliver accurate and fast results to our clients, and thus we are constantly digitalising
and improving. We also prioritise IT security optimisations and bolster the resilience of our infrastructure with
cybersecurity awareness trainings and regular local IT audits on cybersecurity. I’m confident that these initiatives,
among others, have significantly elevated our monitoring capabilities and systemic resilience, allowing leadership
to focus on driving ESG progress and delivering value where it truly matters.
Looking to the future, the Eurofins Network will continue to work together to meet the challenge of fighting new
threats to the environment and human health, something we are uniquely well positioned to do. It is with our
approach of rapidity, foresight and entrepreneurial flare that we will not only stay ahead of our competitors, but also
make positive contributions to our planet and society.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
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4.2 General Information
GRI Standard/Disclosure: 2-1, 2-6, 2-7, 2-28, 3-3 (Material Topics)
4.2.1 Overview
Eurofins Scientific, based in Luxembourg and listed in the stock market since October 1997, has been a member
of the CAC 40 since September 2021. In 2024, Eurofins' revenues amounted to €6,951m and its adjusted EBITDA
stood at €1,552m.
Today, Eurofins is a leading provider of analytical and testing services, with an international network in 60 countries
generally specialised by end client markets and operating more than 950 laboratories, with ca. 63,000 staff, a
portfolio of over 200,000 analytical methods and more than 450 million tests performed each year to evaluate the
safety, identity, composition, authenticity, origin, traceability, and purity of a wide range of products, as well as
providing innovative clinical diagnostic testing services and in-vitro diagnostic products. We are the global leader
of the Testing, Inspection and Certification (TIC) Industry and a member of the TIC Council. an international
association representing independent testing, inspection and certification companies. The TIC Council is an
international association representing independent testing, inspection and certification companies.
As a network of companies sharing the same vision, Testing for Life, we consider it our obligation to make a positive
impact on the environment and humanity. Our mission is to contribute to a safer and healthier world, and our
policies incorporate a strong focus on the ethical, social and environmental aspects of doing business that are in
alignment with the United Nations Sustainable Development Goals. Through our testing activities, we help many
other corporations, organisations and governments test and improve their practices to make them more
sustainable, and more environmentally and socially responsible.
For our own activities, our commitment to operate in a sustainable way is a natural extension of what we do. We
rely on and require the ethical and compliant conduct of our leaders, employees and partners in all aspects of our
companies’ businesses. These obligations are clearly defined in our Code of Ethics and Core Compliance
Documents, as well as by our whistleblowing procedures and Governance Committees. Outside of work, our
employees have also set up local social and environmental initiatives to reduce our environmental impact and give
back to their own communities at a regional level. Eurofins believes that our global footprint gives us the opportunity
to have a long-lasting positive impact on the environment and society, and we want to embrace this opportunity by
championing ESG initiatives that work towards a more sustainable future.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
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4.2.2 Strategy
Markets and customers served
Eurofins is a provider of analytical services, working across customer markets that can be roughly grouped into
key areas of BioPharmaceutical Services, Food and Feed Testing, Clinical Diagnostics, Environment Testing and
Consumer Product Testing. We have also established Gold Standard Diagnostics, a global provider of diagnostic
technologies and instruments in the fields of bioanalytical testing. Our areas of activities are defined as follows:
• Life: Food and Feed Testing, Agro Testing, Environment Testing
• BioPharma: BioPharma Services, Agrosciences, Genomics, Forensic Services
• Diagnostic Services & Products: Clinical Diagnostics Testing, In Vitro Diagnostics (IVD) Solutions
• Consumer & Technology Products Testing: Consumer Product Testing, Advanced Material Sciences
The distribution of revenue by area activity is illustrated in Figure 1 below.
Figure 1. Revenue by area of activity in 2024.
Further detail on our services and markets can be found in section 2.2 - Our Businesses, of this Annual Report.
Business model and value chain
Eurofins invests in a network of state-of-the-art laboratories and equipment to remain at the forefront of scientific
innovation and provide our clients with the highest quality and service and the best possible turnaround time (TAT).
Our decentralised structure of entrepreneur-led companies promotes closer relationships with, and more
individualised services for, clients, while fostering business agility and scientific innovation. Each Eurofins
laboratory strives for operational excellence and aspires to be the best partner to its clients by leveraging the
Group's capabilities.
Eurofins’ broad range of services are important for the health and safety of people and our planet and address the
need to ensure that food and water is safe, pharmaceutical products are effective, and the environment is protected.
Our Food and Feed Testing services include testing services for the assessment of the safety, purity, composition,
authenticity, and traceability of food products and ingredients, Training, Consulting, Auditing and Certification for
implementation of consistent and high-quality food safety measures, and Research and Development supports to
ensure products are up to date with food hazards and trends.
Eurofins’ Environment Testing services comprise the testing of soil, sediment, solid waste; ground, surface,
drinking, recycled and wastewater; air, tissue, biologics (including biomonitoring using serum and whole blood),
building materials and constituents of the Built Environment and biofuels among others for contaminants and
impacts on human health.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
55
Our BioPharmaceutical Services range from compound discovery and clinical research through to manufacture
and release of pharmaceutical products and post-approval/marketing. We offer clients services including
Discovery, Preclinical/Early Development, CDMO, BioPharma Product Testing, Bioanalytical, Early Clinical
Development, Central Laboratory, Specialty Clinical Trial Laboratory, Anatomical Pathology and Professional
Scientific Services® (PSS) Insourcing Solutions.
Eurofins’ Clinical Diagnostics business contributes to every stage of patient care: from genetic predisposition to
prevention, diagnosis, treatment monitoring and even prognosis, with tests for Women’s Health, Transplantation,
Oncology and Infectious Disease among others.
Our Consumer Product Testing services include Testing, Product Compliance and Regulatory services, and
Training, Audit and Inspection services for a range of products such as cosmetics, textiles, shoes and apparel,
toys, wireless devices and electronic products.
Our In Vitro Diagnostics Solutions business, Gold Standard Diagnostics, provides diagnostic technologies and
instruments, including Enzyme-Linked Immunosorbent Assay (ELISA)-based systems (instruments and assays),
rapid lateral flow tests as well as polymerase chain reaction (PCR)-based assays.
For more information on our businesses, business model and value chain, please see sections 2.2 - Our
Businesses, and 2.4 – Our Business Model, of this Annual Report.
Remuneration
The Eurofins Group Remuneration Policy is developed by the Board of Directors with the assistance of the
Nomination and Remuneration Committee. The policy is reviewed annually and updated if required, with official
approval given by the Board of Directors. This is detailed in section 6.3 - Group Remuneration Policy, of this Annual
Report.
The short-term incentive (“STI”) rewards the year-on-year performance of a Group Operating Council (GOC)
member against clear and measurable strategic, financial, operational and sustainable business development
objectives which support the long-term value creation for the benefit of our stakeholders. The STI is a key element
of the Group’s pay-for-performance approach to remuneration.
In alignment with our network-wide carbon neutrality target, climate-related targets are factored into the
remuneration of the members of the GOC, short-term incentives (STI) comprise environmental metrics such as
CO
2
emission reduction targets. Further detail can be found in section 6.5 - Compensation awarded to GOC
members in 2024 and 2023, of this Annual Report.
In addition, for operational leaders across all of our businesses, relative emission reduction targets for Scopes 1,
2 and 3 form part of the variable compensation.
4.2.3 Basis of the Sustainability Statement
The scope of this Non‑Financial Statement includes all the activities of the Eurofins Network of Companies. The
scope aligns with that of the financial statements and the details of the companies included in the consolidation
scope are provided on Note 3 of the consolidated financial statements. All sustainability information relating to
companies acquired in 2024 is included in this statement, except for environmental related information, where
companies acquired after June 2024 will be included with a one‑year delay in the next sustainability statement.
The statement encompasses operations of the Eurofins Network, integrating upstream and downstream value
chain information deemed material according to the double materiality assessment of impacts, risks, and
opportunities.
Special Circumstances Disclosures
The format and content of this report have been adapted to prepare, in the context of the requirements of the
European Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting
Standards (ESRS). Regarding materiality assessments, Eurofins previously relied on a materiality matrix based on
the United Nations Sustainable Development Goals (SDGs). This approach identified material topics and issues
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
56
under the Environmental, Social, and Governance (ESG) pillars and mapped them to the SDGs most relevant to
the Eurofins Network’s activities.
In 2023, in preparation for the application of EU Directive 2022/2464, the European Corporate Sustainability
Reporting Directive (CSRD) and European Sustainability Reporting Standards (ESRS), Eurofins started its Double
Materiality Assessment (DMA). This new assessment was conducted under an impact and financial materiality
framework, incorporating insights from internal subject-matter experts and consultations with internal and external
stakeholders, including clients, suppliers, and shareholders.
The DMA was also aligned with the Enterprise Risk Management (ERM) process, a key pillar in identifying and
assessing material risks and possible opportunities. This approach ensures a comprehensive evaluation of
Eurofins’ impact on people and the environment, as well as financial risks and opportunities associated with each
sustainability topic. The methodology used for the double materiality assessment is described in section 4.2.7 -
Materiality and the ERM in section 4.5.6 - Enterprise Risk Management.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
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4.2.4 Vision, Mission and Values
GRI Standard/Disclosure: GRI 2: 2-23
Our Vision
To be the Global Leader in Testing for Life.
Our Mission
To contribute to a safer and healthier world by providing our customers with innovative and high-quality laboratory,
research and advisory services whilst creating opportunities for our employees and generating sustainable
shareholder value.
Our Values
Customer Focus
• Delivering customer satisfaction by listening to and exceeding customer expectations;
• Adding value for our customers through our services;
• Seeking innovative solutions to help our customers achieve their goals.
Quality
• Delivering quality in all our work; providing accurate results on time;
• Using the best appropriate technology and methods;
• Seeking to improve or change our processes for the better.
Competence and Team Spirit
• Employing a diverse team of talented and competent staff;
• Investing in training and creating rewarding and equitable career opportunities;
• Recognising and encouraging outstanding performance.
Integrity
• Behaving ethically and socially responsibly in all our business and financial activities;
• Demonstrating respect and inclusivity towards our customers and our staff;
• Operating sustainable environmental policies.
Within the Eurofins Network, various other policies and recommendations complement or specify in detail how all
Eurofins stakeholders contribute to fulfil Eurofins’ mission, values and commitments.
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4.2.5 Sustainability at Eurofins – Executive Summary
GRI Standard/Disclosure: 2-3
Sustainability at the heart of what we do
At Eurofins, we believe that sustainability is at the heart of what we do. We are guided by our vision to be the Global
Leader in “Testing for Life”, our mission of contributing to a healthier and safer world and our core values that
provide a strong foundation towards Environmental, Social and Governance (ESG) initiatives.
Eurofins’ commitment to sustainability starts within Eurofins’ companies themselves, through a shared
responsibility towards people and the planet in all that they do. With climate change an imminent threat, Eurofins
and its many companies recognise their duty to proactively reduce or compensate for the environmental impact
that essential operations have on the planet, as well as helping our clients to do the same. This is how Eurofins
serves as an ESG Enabler.
The majority of Eurofins material operations are sustainability enablers
• Eurofins believes its businesses are consistent with and support 16 of the 17 of the UNSDGs.
• Across all business lines, 99% of Eurofins revenue, 99% of its operational expenditures (OpEx) and
90% of its capital expenditures (CapEx) falls into an area of activity that supports one or several of the
UNSDGs. This shows the impact that “Testing for Life” has on all aspects of sustainable development.
Environmental
Carbon Neutrality Objective
• Carbon neutrality by the end of 2025.
• Over 150 CO
2
Champions participate in our carbon footprint measurement exercise and assist business
leaders to implement local reduction strategies with central support.
• All Business Unit Managers and above Leaders have ESG targets, focussed on environment, safety and
compliance, conditioning a part of their variable compensation. Furthermore, targets specific to CO
2
footprint reduction are required and reviewed as part of a separate annual ESG budgeting activity.
• Eurofins Group’s 2024 emissions for Scopes 1, 2 and part of 3 have been determined as ca. 471,000
metric tonnes of CO
2
equivalents. For the same scope, 2019, 2020, 2021, 2022 and 2023 emissions were
also determined.
1
CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited.
Total emissions – market-based
539
530
564
527
489
471
0
100
200
300
400
500
600
2019 2020 2021 2022 2023 2024
GHG emissions in 1000 metric tonnes CO
2
e (market-based)
Total CO2e emissions
ktCO
2
e
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Final
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• Emission reduction of -3.8% vs 2023 achieved.
• Focussed efforts to source renewable energy resulted in an increase of green electricity utilised across
the Eurofins Network from 23% in 2023 to 27% in 2024.
• Achieved carbon intensity (tCO
2
e/mEUR) reduction (market-based):
o Ca. -7.1% vs 2023
o Ca. -32% vs 2019 (baseline year)
• On its path to carbon neutrality by 2025, Eurofins has offset part of the emissions caused by its
operations. Eurofins retired 200,000 metric tonnes of carbon credits in 2024 (2023: 200,000 tonnes
CO
2
e). The retired offsets fully cover the remaining Scope 1 and 2 emissions in 2024 (180,409 tonnes
CO
2
e).
• In early 2024, Eurofins signed the SBTi commitment letter joining the growing group of companies
setting ambitious science-based targets.
3
CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited.
Carbon intensity per mEUR (tCO2e/mEUR)
13
11
10
9
9
9
28
23
19
18
18
17
57
50
46
47
45
41
0
20
40
60
80
100
2019 2020 2021 2022 2023 2024
Carbon intensity per mEUR (tCO
2
e/mEUR) (market-based)
Scope 1 Scope 2 Scope 3
75
74
tCO
2
e/mEUR
99
85
72
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Social
Equality Driving Excellence
• Eurofins’ Equality Driving Excellence (EDE) initiative continues to be an important internal initiative
dedicated to fostering a safe and inclusive work environment for all employees of Eurofins companies.
• In 2023, the EDE introduced a "Unity in Community" initiative to drive global and local equality and
inclusion actions. Building on this, 2024 focussed on a new initiative of "Unity in Action" which saw events,
training, and projects launched. Key areas covered by these initiatives included Recruiting and
Onboarding Excellence, Employee Engagement, Innovative EDE Initiatives, Talent Mobility and
Leadership Development, and Community Outreach.
• The Eurofins Network workforce is proud to be comprised of approximately 57% women in total. 47%
women are represented in all levels of leadership combined (e.g., GOC members, Regional Business
Line Leaders, National Business Line Leaders, Business Unit Leaders, and all other leaders).
• Eurofins became a signatory to the UN Women’s Empowerment Principles (UN WEPs) in December
2022, joining over 8,500 companies worldwide.
People, Health and Safety
• Eurofins has an active network of over 400 local Health and Safety Champions that represent all Business
Lines across the Eurofins Network of companies that conduct quarterly global virtual meetings to share
best practices that align on Key Performance Indicators (KPIs).
• During 2024, a Health and Safety internal site accessible to every Eurofins employee was created. This
site contains the presentations, training and tools which can be used to continuously improve health and
safety performance. These resources not only support the Eurofins Network of Health and Safety
champions but are available to all Eurofins employees allowing them to be better trained and prepared to
identify situations that pose risk. This proactive approach reflects our commitment to safety and
continuous improvement.
Employment Creation and Human Capital Development
• Eurofins continues to invest significant resources in
training and talent development. In 2024, focus was
placed on ensuring accessibility to both central and
local trainings on technical and business-related
training via the Eurofins Learning Centre (ELC)
platform. More than 1,882 training modules covering
33% of all National Business Lines are now hosted
in the ELC.
• The Eurofins Academy aims to create training
modules in 21 languages to benefit the maximum
number of employees in all of our companies.
Trainings are always aligned with the equality and
inclusion principles and equipped with audio voice
over, subtitles and notes to ensure accessibility.
• Eurofins is proud to have continued to create new
jobs (including acquisition), with more than 20%
increase in headcount between 2020 and 2024.
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61
Giving Back
• Eurofins continues to contribute to communities
across the world through its CSR activities, which
are led by the Eurofins Foundation.
• Since its inception in 2019, the Eurofins Foundation
has disbursed 382 grants and in 2024, committed
to an additional 75 grants to support projects in
numerous countries around the world.
Governance
• The Executive Sustainability Committee and Board level Sustainability and Corporate Governance
(S&CG) Committee work closely together to assess the adequacy and efficacy of Eurofins’ corporate
sustainability strategy and related ESG performance indicators.
• Eurofins actively engages with its key stakeholders to drive consistent improvements to its services and
the way its business is conducted and governed.
• More customers are requiring participation in EcoVadis CSR assessments and as a result, annual surveys
are completed both at the corporate level and by over 45 Eurofins subsidiaries. Of those participating in
2024, 7 have achieved a Platinum rating, 12 have achieved a Gold rating, 12 have achieved a Silver rating
and 4 have achieved a Bronze rating.
Honesty, Integrity and Human Rights
• In 2024, the Eurofins Academy launched the annual reassignment of eight key compliance trainings,
ensuring employees regularly refresh their knowledge. This initiative led to over 266,000 course
assignments, reinforcing our commitment to integrity and responsibility. With strong leadership support,
this focus on compliance has driven a 4 percentage points increase in completion rates, with 91% of
employees now trained in the Eurofins Code of Ethics.
• The Eurofins Group Code of Ethics, as the central compliance document, provides instructions for every
Eurofins Employee. In line with Eurofins’ broad and holistic approach to compliance and business ethics,
it includes:
o Essential business-related themes like a strict anti-bribery and anti-corruption commitment and
an unconditional commitment towards legality.
o Compliance with labour laws, including the four fundamental principles contained within the
International Labour Organisation (ILO) Declaration.
o Supporting human rights in line with the stipulations contained within the Universal Declaration
of Human Rights.
• Requiring our suppliers to comply with and acknowledge the Eurofins Code of Ethics sets clear
expectations that all entities withing our supply chain demonstrate compliance with labour laws and human
rights stipulations.
2024 Selection – Primary Areas of Intervention
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
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Sustainable Procurement and Supply Chain Management
• In 2024, Eurofins’ Supplier Code of Ethics has been agreed to or acknowledged by vendors accounting
for more than 58% of Eurofins’ total purchasing spend and 90% of core supplier spend. This code ensures
responsible, ethical treatment of employees, stakeholders, and the community in which a suppliers’ and
Eurofins’ business operates.
Information and IT Operation Security
• Eurofins has made significant investments in IT to enhance sample processing, cost efficiency, and secure
result delivery. In 2024, we obtained a SOC 2 certification and improved our CyberVadis score to
952/1000, up from 817 the previous year. These efforts, alongside continuous policy modernisation,
highlight our commitment to fortifying our IT infrastructure and security posture.
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4.2.6 Eurofins’ Contribution to United Nations Sustainable Development
Goals
In 2015, the United Nations Member States set up 17 Sustainable Development Goals, hereafter referred to as
‘UNSDGs’. The goals form an urgent call for action by countries, governments and organisations to eliminate
poverty and inequality and ensure protection of the planet by a target date of 2030.
At Eurofins, we continue to transform and improve our business models, testing services and community
engagement to positively contribute to societal development and environmental protection. We are finding
innovative ways to serve as an ESG enabler for our customers and expand our sustainability services through
cutting edge technology and development of new test methods that relate directly to and enhance our alignment
with the UNSDGs. Our testing services provide support and necessary data quickly and accurately which allows
decision-makers, whether medical physicians, governments, the biopharmaceutical sector, and numerous other
industries, to make choices that positively impact people, the environment and mitigate risks.
Eurofins believes its businesses are consistent with and support 16 of the 17 of the UNSDGs both at Group Service
Centres level, for example through the Eurofins Foundation, the Eurofins Academy, the Livelihoods Carbon Fund
(LCF), Equality Driving Excellence (‘EDE’) Initiatives and through the activities of our Business Lines. Where
possible, Eurofins quantifies its impact to the UNSDGs via relevant KPIs. Refer to the Eurofins Data Tables on
Pages 148-149. For topics where quantifiable KPIs are not applicable, qualitative impact is discussed in the
according section.
The table below sets out the areas where Eurofins activities specifically align with the UNSDGs across our various
businesses:
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65
To better measure the impact on the UNSDGs, Eurofins has performed a detailed mapping exercise to identify
each area of activity that supports one or several of the UNSDGs.
Across all business lines, 99% of Eurofins revenue, 99% of its operational expenditures (OpEx) and 90% of its
capital expenditures (CapEx) falls into an area of activity that supports one or several of the UNSDGs. This shows
the impact that “Testing for Life” has on all aspects of Sustainable Development. Additionally, on pages 75-79, a
comparison with our activities falling under the EU Green Taxonomy is presented.
Some recent examples of how a select few of our Business Lines contribute not only directly to UNSDGs, but
also serve as an ESG enabler to our customers are highlighted below.
BioPharma Product Testing Services
• Contributes to UN SDG 3:
o Performing testing on all starting materials, process intermediates, drug substances
and finished products to support all phases of the drug development process for both
pharmaceutical and biopharmaceutical drug products.
o Offering comprehensive testing services for medical devices and combination
products (e.g., ophthalmic products, drug coated implants, prefilled syringes, surgical
masks, containers etc.) to comply with FDA requirements depending on the
classification and intended use.
Clinical Diagnostic Services
• Contributes to UN SDG 3:
o Offering clinical diagnostic tests that factor into approximately 70% of decisions that
doctors make for patient healthcare ranging from general wellness (e.g., blood panels)
to critical decisions including organ transplant donor compatibility, neurodegenerative
disease diagnoses, cardiovascular disease risk evaluations and a wide variety of
female reproductive health matters including infertility issues.
o Leading the way on genetic and metabolic testing to guide personalised medicine
based on a patient’s unique profile.
Consumer Product Testing
• Contributes to UN SDG 7:
o Offering a variety of compliance services for manufacturers, installers and operators
involved in renewable energies including testing for equipment used for wind turbines,
solar and photovoltaic modules and electrical vehicle charging stations.
o Accredited energy efficiency testing and certification services enabling manufacturers,
retailers and their supply chains to demonstrate product quality and energy efficiency
(e.g., Ecodesign Directive 2009/125/EC, 2012/27/EU, Energy Labelling Directive
2017/1369, and ENERGY STAR® programme).
Forensic Services
• Contributes to UN SDG 16:
o Outstanding expertise in all areas of forensic DNA analysis including, DNA profile
interpretation and comparison for suspects and DNA bodily fluid material analysis for
crime scenes to assist police forces and legal services with investigations.
o Handwriting comparison, signature analysis, reconstruction of shredded documents
and analysis of suspected counterfeit documents to help authorities to detect fraud
and solve criminal cases.
Food and Feed Testing
• Contributes to UN SDG 2:
o Establishing the safety, composition, authenticity, origin, quality, traceability and purity
of food and feed products.
o Offering comprehensive nutritional analysis and compliant labelling services for food,
pet food, feed, commodities and dietary supplements.
Sustainability Services
• Contributes to UN SDG 15:
o Offering biodegradability testing and related services (e.g., microplastic testing,
ecotoxicity testing, compostability testing, biobased content testing) to enable our
customers to provide more sustainable consumer products and validate green claims
through metrics and measurements.
o Certifications or management tools to enable our customers to confirm their
commitment and dedication to eco-friendly corporate practices (e.g., air quality
monitoring, vegan verification, chemical management tools, Leather Working Group
(LWG) audits).
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
66
4.2.7 Materiality
The introduction of the Corporate Sustainability Reporting Directive (CSRD) marked a pivotal shift in reporting
practices and regulatory compliance for the Eurofins Network. The journey of transitioning from the Non-Financial
Reporting Directive (NFRD) to the CSRD framework broadened the scope, introduced standardised requirements,
and increased scrutiny, fundamentally reshaping how we have approached our sustainability disclosures.
As part of the preparation for CSRD, we have absorbed the double materiality principle, which requires a transition
from traditional materiality assessments focussed on financial impacts to a more holistic assessment. We have
integrated societal and environmental considerations alongside financial considerations, aligning our sustainability
efforts with our Impacts, Risks, and Opportunities (IRO).
Eurofins has leveraged the existing Enterprise Risk Management (ERM) framework for resilience analysis and due
diligence assessments including sustainability. Resilience analysis evaluates the capacity of the Eurofins Network’s
strategy and business model to manage material impacts and risks while leveraging opportunities. Due diligence
assessments are an ongoing process to identify, prevent, mitigate, and account for negative impacts on people
and the environment across Eurofins' operations and value chain. The ERM process includes annual interviews
with business and functional leaders to identify new risks, analyse existing risks and track progress on mitigations
with increased focus on CSRD related topics. While ERM primarily has been focusing on risks, impact and
opportunities related to CSRD are being included to identify and consider for external disclosure. For more details,
please refer to the ERM section of the ESG Report.
These processes are governed by the Board of Directors, supported by its specialised committees, including the
Audit and Risk Committee, the Sustainability and Corporate Governance Committee, and the Executive Risk
Committee. These bodies oversee risk identification, mitigation, and strategy implementation, with additional
support from the Group Operating Council and the GSC Risk Manager.
To ensure a rigorous and transparent assessment, Eurofins undertook the following steps as part of its double
materiality assessment (DMA):
1. Stakeholder identification: Key stakeholders were identified based on their critical perspectives and
interests in sustainability efforts.
2. Stakeholder consultation: Engagement sessions were conducted with these stakeholders to gather
insights, expectations, and priorities.
3. Impact and financial assessment: Potential and actual societal, environmental, and financial impacts, risks
and opportunities for each sustainability topic were evaluated.
4. Materiality matrix: A matrix was developed to prioritise topics based on their significance to stakeholders
and the network’s activities.
The DMA process and its findings were shared with the Board’s Audit and Risk Committee, the Sustainability and
Corporate Governance Committee and as well with the Executive Sustainability Committee and the Group
Operating Council (GOC).
While the CSRD has not yet been transposed into Luxembourg law before the publication of this report, we are
voluntarily disclosing our 2024 DMA inputs and outcomes ahead of the formal CSRD transposition to demonstrate
our commitment to transparency to our stakeholders.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
67
Stakeholder Identification
At the start of our double materiality assessment, we have identified and prioritised key stakeholders, including
shareholders/investors, customers, employees, suppliers, and regulators, whose perspectives influenced our
sustainability performance. This process ensured that our reporting aligned with stakeholder interests,
expectations, and concerns. By prioritising stakeholders based on their influence and impact, we focussed
engagement efforts effectively, captured diverse perspectives, and enhanced trust, credibility, and the relevance
of our sustainability reporting.
• Shareholders:
o Regular engagement with the Investor Relations (IR) team to understand ESG needs through
documented meetings.
o Consultation with the Head of Investor Relations to rank topics based on our main shareholders
priorities.
• Suppliers:
o Engagement with the top suppliers, through a survey.
o Topics covered in the survey included sustainability, supply chain resilience, and partnership
opportunities.
• Employees:
o Surveyed representative number of Eurofins Employees, including CO
2
Champions, Health & Safety
Champions, and Equality Ambassadors:
o CO
2
Champions focus on carbon footprint management and improvements within their
business lines.
o Health & Safety champions ensure adherence to safety standards, drive improvement and
HSE reporting. Many of them serve as HSE Managers or Quality Managers in our
laboratories.
o Equality Ambassadors promote inclusivity and equality as part of our Global Equality Driving
Excellence (EDE) Council. Many of them are HR Directors or Business Partners within
Eurofins entities.
• Clients:
o Surveyed internal key business leaders, as subject matter experts, to gather nuanced insights and
priorities around sustainability from clients of our key business lines.
• Communities and Regulators:
o Engaged with internal subject matter experts, business leaders, the Eurofins Foundation, and
external white papers.
o Benchmarked performance using peer assessments and identified best practices.
• Environment (Silent Stakeholder):
o Benchmarked environmental performance against peers and reviewed industry trends.
Stakeholders’ Consultation
ESRS Topic
Stakeholders’ key feedback
E1 – Climate Change
Shareholders and Clients: Emphasised carbon neutrality and energy
sourcing as critical to sustainability and profitability.
Employees: Provided insights on adaptation and mitigation priorities.
Suppliers: Highlighted the importance of carbon footprint adaptation.
E2 – Pollution
Suppliers: Prioritised waste reduction and eco-friendly materials in service
delivery.
Internal Stakeholders: Identified opportunities in pollution testing services,
particularly soil and water testing.
E3 – Water and Marine
Resources
Employees and Internal Stakeholders: Highlighted opportunities in PFAS
and water quality testing.
Suppliers: Recognised the importance of water management in logistics
and operations.
E4 – Biodiversity and
Ecosystems
Internal Stakeholders: Recognised limited direct impact but highlighted
opportunities in environmental testing services for biodiversity
conservation.
E5 – Resource Use and Circular
Economy
Suppliers: Emphasised importance of waste management, eco-friendly
material use, and sustainable logistics.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
68
Internal Stakeholders: Identified limited opportunities due to sterilisation
standards but potential for future TIC revenue streams.
S1 – Own Workforce
Employees: Prioritised health and safety, retention, training, and
engagement as critical success factors.
Internal Stakeholders: Stressed the importance of well-being and equal
treatment to sustain operational capabilities.
S2 – Workers in the Value Chain
Suppliers: Expect strict adherence to ethical labour practices and quality
control processes.
S3 – Affected Communities
Internal Stakeholders and Eurofins Foundation: Recognised positive
contributions through health services and local employment, with no critical
concerns identified.
S4 – Consumers and End-Users
Internal Stakeholders and Clients: Emphasised importance of personal
safety and quality assurance in products and services, including impact to
end-users.
G1 – Business Conduct
Employees: Value corporate culture, whistleblower protection, and anti-
corruption measures.
Suppliers and Internal Governance Teams: Expect ethical conduct and
adherence to governance standards to ensure operational and reputational
integrity
Cybersecurity and Data Privacy
(Non-ESRS Topics)
Clients and Internal Stakeholders: Emphasised data security and IT
stability as critical for trust and business continuity.
Impact and Financial Assessment
The next step in the assessment process was the impact assessment, where the potential financial and societal
impacts of identified ESG topics on business operations, strategy, and stakeholders are evaluated. Both
quantitative and qualitative data was analysed to determine the magnitude and likelihood of these impacts,
considering factors such as regulatory trends, market dynamics, and the stakeholder expectations listed in the
section above.
Impact Materiality Assessment
The impact materiality assessment was the process by which we determined material information on sustainability
impacts (either positive or negative) based on the input collected from our stakeholders and by reflecting on
Eurofins’ business relationships, strategy and regulatory landscape. The ESRS does not mandate a specific
process or sequence of steps to be followed when performing the materiality assessment, we opted to follow the
guidelines from the TIC Council and the resource provided by EFRAG, the “Implementation Guidance Materiality
Assessment
4
.
The impact materiality was done assessing the actual or potential positive and negative sustainability‑related
impacts associated with the Group’s business activities. Adverse impacts are assessed on severity (size, scale,
reversibility) and probability, while positive impacts do not take the irremediable character of the impact into
account.
Financial Materiality Assessment
Financial materiality was assessed for both actual and potential risks as well as opportunities. The financial
materiality is company-specific, determined based on a grade metric set in percentage of thresholds to establish
multiple levels of materiality. We leveraged the Group’s existing Enterprise Risk Management framework, which
accounts for risks based on a free cash flow impact over a 5-year horizon.
Material Impact and Financial Assessment Results
The material impacts, risks, and opportunities identified through our double materiality assessment are closely
linked to the strategy and business model of the Eurofins Network of companies. By evaluating societal and
financial impacts in collaboration with key stakeholders, we ensure that our sustainability priorities align with
operational goals, stakeholder expectations, and regulatory requirements.
4
Available at
https://www.efrag.org/Assets/Download?assetUrl=%2Fsites%2Fwebpublishing%2FSiteAssets%2FDraft%2520E
FRAG%2520IG%25201%2520MAIG%2520231222.pdf
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
69
ESRS Topic
Impact
Risk
Opportunity
Environmental
E1 – Climate
Change
Operational reliance on fossil
fuels.
Greenhouse gas emissions
contributing to global warming.
Investment in energy efficiency at
offices, laboratories, operational
equipment and transportation.
Acute and chronic climate risks,
including flooding and other natural
disasters
Increased (carbon) energy costs,
including cost of buying renewable
energy/RECs
Regulatory consequences and
reputational damage in case of non-
compliance
Reduce spend resulting from
energy efficiency investments
Group reputation and
attractiveness to different
stakeholders, including
employees.
Social
S1 – Own
Workforce: Equal
treatment and
opportunities for
all
Ensure fair, equal and inclusive
treatment of all staff.
Promotion of respect for human
rights across the organisation.
Appropriate work-life balance.
Stimulation of staff training and
development.
Employee engagement, retention,
and minimising productivity and
expertise loss.
Reduced employee engagement
Increased staff turnover and attrition
rates.
Insufficient training to ensure high-
quality consistency.
Loss of qualified expertise and
productivity.
Challenges to succession planning
and business continuity.
Increased staff engagement and
retention to drive productivity,
performance and growth.
Well-trained and developed staff to
strengthen organisational
resilience.
Improved reputation and
attractiveness of the Group for all
stakeholders.
S1 – Own
Workforce:
Health & Safety
Strict processes to support and
monitor a safe workplace
minimising illness and accident,
and mitigate impacts in case of
occurrence.
Back-up and delegation planning
in case of vacancies and illness.
Escalation and penalisation
procedures in case of non-
compliance.
Work-related injuries or fatalities
impact quality, performance and
productivity
Reduced opportunity to attract
qualified staff
Legal action and claims arising from
staff and governmental authorities.
Reputational damage negatively
impacting the brand image.
Continuity to attract qualified and
strong-performing staff.
Operational and business benefits
of brand image.
S4 – Consumers
and End-Users:
Personal Safety
Guarantee product safety for
customer, and indirectly, to end-
users.
Legal and reputational damage
resulting from quality breaches in
testing protocols.
Build long-standing relationships
with existing and new customers.
Governance
G1 – Business
Conduct
Promote ethical business
behaviour and do-the-right
practices.
Compliance with anti-corruption
measures.
Global wide guaranteed
whistleblower protection program.
Long-term relationships with
vendors as key partners in the
Group’s value chain process.
Reputational damage from ethical or
governance malpractices.
Legal actions and penalties,
including risk of losing operational
licenses.
Staff not reporting non-compliance
behaviour and practices.
Shortage of supplies
Ethical leadership and business
conduct to drive trust-based
relationships, innovation and
company growth.
Promote whistleblower reporting
and protection
Secure supplies of qualitative
equipment and consumables.
Group-specific
Cybersecurity
Potential security breaches.
Loss of sensitive personnel or
business data.
Phishing attempts.
Ransomware attacks.
IT system disruptions.
Business or personnel data theft.
Reputational damage with
employees or external partners.
Financial impact due to loss of
customers and suppliers.
Increased IT spend.
Competitive advantage due to
high-quality security environment
Strengthen trust with key partners.
Data Privacy
Non-compliance with data
protection legislation.
Mishandling of personal
information leading to privacy
violations.
Reputational damage with
employees or external partners.
Legal claims and penalties.
Financial impact due to loss of
customers and suppliers.
Strengthen trust with key partners
and employees.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
70
Eurofins’ Double Materiality Matrix
The outcome of the assessment is presented in the Eurofins double materiality matrix below:
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
71
4.3 Environmental
4.3.1 Safeguarding the Environment through our Products and Services
GRI Standard/Disclosure: 2-6, (Indirect economic impacts), 203-2
As a network of companies that work to safeguard the environment through many of our testing activities,
considering our impact on the environment is a priority as is our commitment to sustainable operations. Our broad
portfolio of testing services enables our clients across numerous industries to limit the negative impact of their
activities on the environment or society. The result is that more companies around the world can meet
Environmental, Social and Governance (ESG) criteria, a set of sustainability and ethical standards for a company’s
activities.
Related to the UNSDGs, Eurofins has performed a mapping exercise to identify which of our areas of activity can
be considered Environmentally Sustainable Economic Activities based on the European taxonomy for sustainable
activities.
Context of the European taxonomy for sustainable activities
The taxonomy was established by EU regulation 2020/852 (18 June 2020) to support the creation of a framework
to facilitate sustainable investment and the amended EU directive 2013/34 concerning disclosure of non-financial
and diversity information.
According to Article 27 of regulation 2020/852, depending on the environmental objectives (according to Article
9), this regulation is to be applied as follows:
• from 1 January 2022 on climate change mitigation (9 a) and adaptation to climate change (9 b)
• from 1 January 2023 on the remaining four Environmental Objectives
The six Environmental Objectives according to the EU Taxonomy are:
1. Climate change mitigation
Activities contributing substantially to the stabilisation of greenhouse gas concentrations in the atmosphere through
the avoidance or reduction of greenhouse gas emissions or the increase of greenhouse gas removals.
2. Climate change adaptation
Activities that include or provide adaptation solutions which substantially reduce the adverse impact of the current
or expected future climate on people, nature or assets.
3. Sustainable use and protection of water and marine resources
Activities contributing to achieving and retaining the good status of bodies of ground, surface or marine water by :
• protecting the environment from the adverse effects of urban and industrial wastewater discharges;
• protecting human health by ensuring drinking water is free from any micro-organisms, parasites and
substances that constitute a potential danger;
• improving water management and efficiency, by promoting the sustainable use of water through the long-term
protection of available water resources;
• ensuring the sustainable use of marine ecosystem services or contributing to the good environmental status
of marine waters, including by protecting, preserving or restoring the marine environment and by preventing
or reducing inputs in the marine environment.
4. Transition to a circular economy
Activities that contribute substantially to the transition to a circular economy, including waste and litter prevention,
using natural resources, increasing the lifetime of products, substantially reducing the content of harmful
substances, preventing, or reducing waste generation, and increasing use of recycled raw materials.
5. Pollution prevention and control
Activities contributing substantially to environmental protection from pollution by:
• preventing pollutant emissions into air, water or land;
• improving levels of air, water or soil quality;
• preventing or minimising any adverse impact on human health and the environment from the production, use
or disposal of chemicals;
• cleaning up litter and other pollution.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
72
6. Protection and restoration of biodiversity and ecosystems
Activities contributing substantially to protecting, conserving or restoring biodiversity and good condition of
ecosystems through:
• nature and biodiversity conservation and protection and restoring terrestrial, marine and other aquatic
ecosystems in order to improve their condition;
• sustainable land use and management, including adequate protection of soil biodiversity, land degradation
neutrality and the remediation of contaminated sites;
• sustainable agricultural practices, including those that contribute to enhancing biodiversity or to halting or
preventing the degradation of soils and other ecosystems, deforestation and habitat loss;
• sustainable forest management, including practices and uses of forests and forest land that contribute to
enhancing biodiversity or to halting or preventing degradation of ecosystems, deforestation and habitat loss.
The EU delegated regulation 2021/2178 (6 July 2021) is specifying the content and presentation of information to
be disclosed and the methodology to be followed in order to comply with the disclosure obligation of EU regulation
2020/852.
The technical screening criteria for determining the conditions under which an economic activity qualifies as
contributing substantially to climate change mitigation or climate change adaptation are defined in the Annex 1 to
the EU delegated act 2021/2139 (4 June 2021). With the publishing of the delegated regulation 2023/2486 in June
2023, the European Commission has also released the remaining four environmental objectives.
The mapping of Eurofins’ areas of activities taxonomy reporting complies with the EU regulations listed above as
well as with the guidance from the TIC Council. TIC services break down into three categories, by level of eligibility
for the taxonomy:
1. Level 1: TIC services which are taxonomy eligible according to the delegated act 2020/852 of the taxonomy
and the related delegated regulation 2023/2486. The main areas of activity falling under this level are Ground-,
Surface Water-, Soil- and Asbestos Testing. It is equivalent to 14.7% of Eurofins’ consolidated revenue, 15.9 %
of consolidated OpEx according to the EU Taxonomy and 13.9% of consolidated CapEx in 2024.
2. Level 2: TIC services not included in the EU Taxonomy, but contributing to one or several of the six EU
Taxonomy Environmental Objectives and/or the according “do no significant harm (DNSH)” criteria this
includes activities that are considered Taxonomy-eligible but not aligned. These activities are equivalent to
9.0% of consolidated revenue, 7.9% of consolidated OpEx and 8.9% of consolidated CapEx in 2024.
3. Level 3: TIC services not eligible under EU Taxonomy and not supporting taxonomy objectives – but
contributing to UN Sustainable Development Goals. These activities are equivalent to 75.6% of consolidated
revenue, 76.0% of consolidated OpEx and 67.7% of consolidated CapEx in 2024.
Including Level 1, 2 and 3 activities, Eurofins TIC services contributing to the UNSDGs are equivalent to 99% of
consolidated revenue, 99% of consolidated OpEx and 90% of consolidated CapEx in 2024.
The graph below highlights the three categories by level of eligibility for the EU Taxonomy:
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
73
Some general examples of how a select few of our Business Lines contribute to the six EU Taxonomy objectives
are:
Agroscience Services
• Soil carbon check testing which provides data to measure the amount of carbon captured in soil allowing
farmers to improve practices to increase carbon storage in soil. This contributes to reducing climate change
through increased CO
2
capture.
• Supporting customers with field research and the development of new technologies to improve farming
efficiencies, increase yields, reduce waste, and minimise or eliminate the impact on humans, biodiversity, and
the connected environment.
• Contributing to efforts to turn organic waste into useful products (e.g., methane to generate electricity, organic
fertiliser) by testing the chemical, physical and biological aspects of compost and biogas to confirm quality.
Environment Testing
• Offering testing services for water, air, soil, waste and other products to assess their quality and their impact
on health and the environment.
• Conducting analyses to classify products by industry specifications for biofuels which benefit the environment
due to reduced emissions, smog, wastewater and hazardous waste.
• Utilising industry-leading practices to test a wide range of environmental matrices (e.g., drinking water, soil,
tissue, consumer products, blood/serum etc.) for the presence of Per- and Polyfluorinated Alkyl Substances
(PFAS) which are contaminant compounds of emerging concern due to their resistance to biodegradation in
the environment.
• Contributing to public health and safety by performing a variety of water testing services for hospitals (e.g.,
endotoxin testing for dialysis water, legionella detection in shower systems, water microbiology).
• Preventing pollution and contamination through a wide array of waste testing services, including sampling and
testing of generic waste (industrial and civil sectors), building materials (asbestos and lead), chemicals,
hazardous waste and wastewater.
4.3.2 Eurofins EU Taxonomy Reporting
In accordance with the EU Taxonomy Regulation, Eurofins has assessed the weight of its taxonomy eligible and
taxonomy aligned activities for its revenue, CapEx and OpEx for the year which ended on 31 December 2024. Our
reporting is made following the guidance of the TIC Council, and the reporting scope is identical to the scope of
our Financial and Operating Review.
Identification of Taxonomy-eligible activities
Eurofins first screened all its activities to determine eligibility for substantial contribution to the EU Environmental
Objectives as outlined in the EU Commission Delegated Regulations 2020/852, 2021/2139 and 2023/2486.
Verification of Taxonomy-aligned activities
Eurofins concluded that its activities in soil, water and asbestos testing meet the technical screening criteria
established for the EU Environmental Goal on Pollution Prevention and Control (Section 2.4 “Remediation of
contaminated sites and areas” within Annex III to the EU Commission Delegated Regulations 2023/2486). This has
been verified by examining all accreditations, recognitions, and certifications the identified Business Units operate
to ensure that the Eurofins selected units’ activities accurately reflect the activities performed and are therefore
Taxonomy-eligible.
Next, compliance with the Do No Significant Harm (DNSH) criteria and the minimum safeguards (UN Guiding
Principles on Business and Human rights and the OECD Guidelines for Multinational Enterprises) was assessed.
Leaders of the identified Business Units operating in eligible activities were asked to confirm their DNSH
compliance through a survey and Eurofins demonstrate its commitment to sustainability through:
• Climate Change Mitigation: Expanding green electricity use, offsetting emissions, and committing to Science-
Based Targets (SBTi).
• Climate Change Adaptation: Conducting climate risk assessments and implementing mitigation measures.
• Biodiversity & Ecosystem Protection: Complying with environmental regulations and ensuring responsible site
management.
On the UN Guiding Principles on Business and Human rights and the OECD Guidelines for Multinational
Enterprises, the Eurofins Network has defined the following policies, procedures, and indicators on related topics:
• Our labour and governance policies including the ILO eight fundamental conventions: Eurofins Core
Compliance Documents, the section 4.4 describe their structure and implementation.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
74
• Our ESG Key Performance Indicator disclosed on Diversity, People, Health & Safety and Honesty, Integrity &
Human Rights;
• Our Equality Driving Excellence initiative.
After careful of their applications with the Taxonomy-Eligible Activities mentioned above and in the absence of
subsequent findings, we concluded that our operations comply with the requirements listed.
Accounting and calculation of the EU Taxonomy KPIs
Revenue
In line with Annex I of the Disclosures Delegated Act, Eurofins' EU Taxonomy-aligned revenue is based on IFRS-
compliant turnover as explained in Note 1.
Share of total, eligible and aligned revenue:
2023
2024
Amount (in €
millions)
%
Amount (in €
millions)
%
Eligible Revenue
(numerator)
924
14,2%
1,019
14,7%
Aligned Revenue
(numerator)
905
13,9%
999
14,4%
Total Revenue
(denominator)
6,515
100,0%
6,951
100,0%
Proportion of total revenue:
2023
2024
Taxonomy‑eligible
by objective
Taxonomy-aligned
by objective
Taxonomy‑eligible
by objective
Taxonomy‑aligned
by objective
Climate change adaptation
0,0%
0,0%
0,0%
0,0%
Sustainable use and
protection of water and
marine resources
0,0%
0,0%
0,0%
0,0%
Transition to a circular
economy
0,0%
0,0%
0,0%
0,0%
Pollution prevention and
control
14,2%
13,9%
14,7%
14,4%
Protection and restoration of
biodiversity and ecosystems
0,0%
0,0%
0,0%
0,0%
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
75
CapEx
In accordance with Annex I of the Disclosures Delegated Act, Eurofins’ EU Taxonomy CapEx is based on IFRS-
defined capital expenditure, with key inclusions and exclusions detailed below.
Share of total, eligible and aligned CapEx:
2023
2024
Amount (in €
millions)
%
Amount (in €
millions)
%
Eligible Additions of
Property, plant and
equipment owned and other
intangibles assets
(Note 2.9, 2.11)
65
8,2%
93
10,1%
Eligible Right of use assets
(Note 2.9)
20
2,6%
15
1,7%
Eligible Business
Combinations
(Note 2.26)
0
0,0%
19
2,1%
Total eligible CapEx
(numerator)
85
10,8%
127
13.9%
Total aligned CapEx
(numerator)
84
10,6%
124
13,6%
Total CapEx
(denominator)
792
100,0%
914
100,0%
Proportion of total CapEx:
2023
2024
Taxonomy‑eligible
by objective
Taxonomy‑aligned
by objective
Taxonomy‑eligible
by objective
Taxonomy‑aligned
by objective
Climate change
adaptation
0,0%
0,0%
0,0%
0,0%
Sustainable use and
protection of water and
marine resources
0,0%
0,0%
0,0%
0,0%
Transition to a circular
economy
0,0%
0,0%
0,0%
0,0%
Pollution prevention and
control
10,8%
10,6%
13,9%
13,6%
Protection and restoration
of biodiversity and
ecosystems
0,0%
0,0%
0,0%
0,0%
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
76
OpEx
Following EU Commission guidance, Eurofins considers only non-capitalised costs related to:
• Research and development
• Short-term leases
• Maintenance and repair
• Other direct expenditures ensuring continued and effective functioning of property, plant, and equipment
In practice, this includes all Lab Equipment Costs.
Share of total, eligible and aligned OpEx:
2023
2024
Amount (in €
millions)
%
Amount (in €
millions)
%
Eligible Lab Equipment
Costs
(Note 2.3)
24
15,3%
27
15,9%
Total eligible OpEx
(numerator)
24
15,3%
27
15,9%
Total aligned OpEx
(numerator)
24
15,0%
27
15.5%
Total OpEx
(denominator)
158
100,0%
171
100,0%
The Total OpEx is included under "Cost of materials and services" in Note 2.3 of Eurofins' Financial Statements
and follows the accounting principles in Note 1.
Proportion of total OpEx:
2023
2024
Taxonomy‑eligible
by objective
Taxonomy‑aligned
by objective
Taxonomy‑eligible
by objective
Taxonomy‑aligned
by objective
Climate change adaptation
0,0%
0,0%
0,0%
0,0%
Sustainable use and
protection of water and
marine resources
0,0%
0,0%
0,0%
0,0%
Transition to a circular
economy
0,0%
0,0%
0,0%
0,0%
Pollution prevention and
control
15,3%
15,0%
15,9%
15,5%
Protection and restoration of
biodiversity and ecosystems
0,0%
0,0%
0,0%
0,0%
Changes from 2023 Reporting
For FY23, CapEx was reported as the purchase and capitalisation of intangible assets and property, plant, and
equipment. In 2024, the calculation was refined to align more closely with EU Taxonomy requirements, as
described above.
As for 2023, Eurofins maintains a conservative approach and has opted not to consider OpEx and CapEx related
to CapEx plans for its 2024 disclosures due to the decentralised nature of such undertakings in the Eurofins
network; however, this may be reassessed for future considerations.
On the next page, we presented the templates for the taxonomy KPIs for the 6 environmental objectives.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
77
Nuclear and fossil gas related activities
Eurofins does not engage in activities related to nuclear energy or fossil gas. The tables related to nuclear and
fossil gas activities, as defined in Annex XII of Commission Delegated Regulation (EU) 2022/1214 can be found in
section 4.6.5 Eurofins EU Taxonomy additional information.
_________________________________________________________________________________________
Taxonomy Eligible and Aligned Revenue for Eurofins
Financial Year 2024
Turnover
Proportion of Turnover year N
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution Prevention and Control
Biodiversity and Ecosystems
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution Prevention and Control
Biodiversity and Ecosystems
Enabling Activity
Transitional Activity
mEUR % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-Eligible Activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Remediation of contaminated sites and areas
PPC 2.4
999,12 14,4% 0% 0% 0% 0% 100% 0% Y Y Y Y Y Y Y 13,9%
E
Turnover of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling
999,12 14,4% 0% 0% 0% 0% 100% 0% Y Y Y Y Y Y Y 13,9%
E
Of which transitional 0,00 0,0% 0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Remediation of contaminated sites and areas
PPC 2.4
20,07 0,3% 0% 0% 0% 0% 100% 0%
Turnover of Taxonomy-eligible but not environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
20,07 0,3%
A. Turnover of Taxonomy-eligible activities (A.1 + A.2) 1019,19 14,7% 0% 0% 0% 0% 100% 0%
B. Taxonomy-non-Eligible Activities
Turnover of Taxonomy non-eligible activities 5.932 85,3%
Total Eurofins 6.951 100%
Category
Minimum Safeguard
Proportion of Taxonomy-aligned (A.1)
or -eligible (A.2) turnover year N-1
Substantial Contribution Criteria
DNSH Criteria
('Does Not Significantly Harm')
Economic Activities
Code
Taxonomy Eligible and Aligned CapEx for Eurofins
Financial Year 2024
Total CapEx
Proportion of CapEx
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution Prevention and
Control
Biodiversity and Ecosystems
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution Prevention and
Control
Biodiversity and Ecosystems
Enabling Activity
Transitional Activity
mEUR % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-Eligible Activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Remediation of contaminated sites and areas PPC 2.4 124,31 13,6% 0% 0% 0% 0% 100% 0% Y Y Y Y Y Y Y 10,6% E
CapEx of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling 124,31 13,6% 0% 0% 0% 0% 100% 0% Y Y Y Y Y Y Y 10,6% E
Of which transitional 0,00 0,0% 0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Remediation of contaminated sites and areas PPC 2.4 2,50 0,3% 0% 0% 0% 0% 100% 0%
CapEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned
activities) (A.2)
2,50 0,3%
A. CapEx of Taxonomy-eligible activities (A.1 + A.2) 126,81 13,9% 0% 0% 0% 0% 100% 0%
B. Taxonomy-non-Eligible Activities
CapEx of Taxonomy non-eligible activities 787 86,1%
Total Eurofins
914
100%
Proportion of Taxonomy-aligned (A.1)
or -eligible (A.2) CapEx year N-1
Category
Economic Activities
Code
Substantial Contribution Criteria
DNSH Criteria
('Does Not Significantly Harm')
Minimum Safeguard
Taxonomy Eligible and Aligned OpEx for Eurofins
Financial Year 2024
Total OpEx
Proportion of Opex
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution Prevention and Control
Biodiversity and Ecosystems
Climate Change Mitigation
Climate Change Adaptation
Water and Marine Resources
Circular Economy
Pollution Prevention and Control
Biodiversity and Ecosystems
Enabling Activity
Transitional Activity
mEUR % % % % % % % Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. Taxonomy-Eligible Activities
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Remediation of contaminated sites and areas
PPC 2.4
26,55 15,5% 0% 0% 0% 0% 100% 0% Y Y Y Y Y Y Y 15,0%
E
Opex of environmentally sustainable activities (Taxonomy-aligned) (A.1)
Of which enabling
26,55 15,5% 0% 0% 0% 0% 100% 0% Y Y Y Y Y Y Y 15,0%
E
Of which transitional 0,00 0,0% 0%
A.2. Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Remediation of contaminated sites and areas
PPC 2.4
0,53 0,3% 0% 0% 0% 0% 100% 0%
OpEx of Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-
aligned activities) (A.2)
0,53 0,3%
A. OpEx of Taxonomy-eligible activities (A.1 + A.2) 27,08 15,9% 0% 0% 0% 0% 100% 0%
B. Taxonomy-non-Eligible Activities
OpEx of Taxonomy non-eligible activities 144 84,1%
Total Eurofins 171 100%
Category
Minimum Safeguard
Proportion of Taxonomy-aligned (A.1) or -
eligible (A.2) OpEx year N-1
Substantial Contribution Criteria
DNSH Criteria
('Does Not Significantly Harm')
Economic Activities
Code
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
78
Eurofins Sustainability in Action – Case Study - Methane mitigation in dairy farming -
collaboration between Eurofins Agro Testing Netherlands and Wageningen University
Methane, a potent greenhouse gas, which ruminants, like cows, produce during digestion, has a global warming
potential over 28 times that of carbon dioxide and accounts for 16% of all global greenhouse gas emissions.
Addressing methane emissions from cows is critical in order to reduce the environmental impact of dairy farming.
In collaboration with Wageningen University and Research, Eurofins Agro Testing Netherlands has developed an
innovative model to predict methane emissions from grass silages fed to cows. This model provides farmers with
a valuable tool to lower methane emissions on their farms and reduce their overall carbon footprint. By accurately
predicting and managing these emissions, farmers can adopt more sustainable practices. These efforts not only
benefit the environment but also improve a farm’s economic viability, as sustainability schemes offered by dairy
companies reward farmers for lowering their carbon footprint, increasing their earnings per kilogram of milk
produced.
The Development of the Methane Emissions Model
To address methane emissions effectively, Eurofins Agro Testing Netherlands now includes methane emission
data in their Dutch reports on grass silages. Methane emissions are influenced by seasonal and yearly variations,
necessitating a benchmarking system to contextualise absolute values against the quality of silage.
Over the past decade, methane emission trends were analysed to identify which chemical parameters significantly
influence these emissions. This research culminated in the creation of an index that benchmarks methane
emissions using chemical parameters closely linkeda to seasonal variations.
The initiative doesn’t stop there—similar models are under development to analyse maize silage and fresh grass.
These models will provide even broader insights, enabling farmers to manage and reduce methane emissions
across diverse feed types, and farming systems.
How It Works
Methane emissions are measured in climate chambers where cows are fed different rations. These measurements,
combined with Near-Infrared Spectroscopy (NIRS) analysis, formed the basis for the predictive model. The index
developed by the Eurofins team correlates chemical parameters with methane emissions, offering actionable
insights to farmers. Even when absolute methane values are affected by seasonal factors, this approach allows
farmers to identify how the quality of their silage contributes to emissions. By leveraging these insights, farmers
can make informed decisions to optimise their practices, reduce emissions, and improve both sustainability and
profitability.
The methane emission results are integrated into a model in the Netherlands, where CO
2
data is stored at the farm
level. This comprehensive approach empowers farmers to monitor and
manage their overall environmental footprint effectively.
Driving Sustainable Dairy Farming
Eurofins Agro Testing's innovative methodology supports farmers to achieve sustainability goals while promoting
environmental stewardship. With incentives like higher earnings through reduced carbon footprints, the dairy
industry is taking significant steps towards a more sustainable future. This initiative exemplifies how science and
innovation can foster a balance between economic viability and environmental responsibility.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
79
4.3.3 Climate Change
GRI Standard/Disclosure: 201-2, 302-1, 302-2, 302-3, 302-4, 303-3, 303-4, 303-5, 305-1, 305-2,
305-3, 305-4, 305-5
Climate change can generate risks and opportunities for Eurofins as several of our sites are located in areas of the
world where climate conditions are expected to change. This will require adaptation for our people, assets, and
operations, and may also create opportunity for the business.
TCFD framework
For the above-mentioned reason, Eurofins is gradually implementing the recommendations of the Task Force on
Climate-related Financial Disclosure (TCFD) as guiding principles to identify and assess climate-related risks and
opportunities and to ensure that the disclosed climate-related information is decision-useful for investors and
stakeholders.
Board’s oversight of climate-related risks and opportunities
The Board of Directors has delegated to the Sustainability and Corporate Governance Committee, which is
exclusively comprised of independent and non-executive Board members, the assessment of the impact of the
operations of Eurofins companies on the environment and the oversight of climate related risks and opportunities.
The Committee directly reports to and advises the Board on such matters. In addition, in alignment with the overall
Risk Governance framework (described in the Enterprise Risk Management section on page 131), the climate
related risks are regularly reviewed by the Executive Risk Committee that supports the Board of Directors, the
Board-level Committees (Sustainability and Corporate Governance Committee and Audit and Risk Committee),
and the Group Operating Council, with the execution of their risk management functions.
The Sustainability and Corporate Governance Committee held six meetings in 2024 and the attendance rate of the
Committee members was 100%. The Committee undertakes an annual review of the risk management framework
with a particular focus on ESG risks, including those related to climate change.
Timeframe
In the context of climate change, Eurofins considers short-, medium-, and long-term risks as the following:
• Short-term risks – risks that may impact near-term financial results, including those that may materialise
within the current annual reporting cycle.
• Medium-term risks – risks that may materially impact the objectives of our strategic planning, over a 5-
year timeframe.
• Long-term risks – risks that may materialise over a period longer than 5 years. For example, the scenario
analysis related to heat waves and riverine flood risk described in the following paragraphs, is performed
considering long-term climate projections to 2030 and 2050.
Type of climate change risks
In alignment with the TCFD framework, we have defined the following risk categories:
• Transition Risks: transitioning to a lower-carbon economy may entail extensive policy, legal, technology,
and market changes to address mitigation and adaptation requirements related to climate change.
Depending on the nature, speed, and focus of these changes, transition risks may pose varying levels of
financial and reputational risk to our organisations.
• Physical Risk / Acute (event driven): the increasing frequency and severity of extreme weather events,
such as cyclones, hurricanes, or floods may pose significant financial risks. These risks include direct
damage to physical assets or interruption of business operations, and indirect impacts, such as supply
chain disruption.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
80
• Physical Risk / Chronic: longer-term shifts in climate patterns may cause, e.g., sustained higher
temperatures and chronic heat waves. These extreme temperature could affect organisations’ premises,
operations, supply chain, and employees’ working conditions.
• Opportunities: efforts to mitigate and adapt to climate change also produce opportunities, for example,
through resource efficiency, cost savings, the adoption of low-emission energy sources, the development
of innovative products and services, access to emerging markets, and building resilience along the supply
chain.
Organisational process and management’s role in assessing and managing climate-related
risks
Climate related risks and opportunities are managed in accordance with the overall Enterprise Risk Management
framework (described in the dedicated section on pages 80-83 and based on the standard ISO 31000). The GSC
Risk and Business Continuity Manager coordinates a risk identification process, performing risk interviews with
Business and Functional Leaders. Identified risks that are material at a consolidated level are analysed, evaluated,
and reported in the Group Risk Register together with their respective mitigations. The outcome of the process is
regularly discussed by the Executive Risk Committee that initiates mitigation actions, assigns responsibilities,
monitors the development of mitigation plans, and eventually escalates relevant information to the Board-level
Committees or directly to the Board of Directors.
The identified risks and opportunities, along with their possible consequences and respective adaptation strategies,
are summarised in the following section and have been assessed using the standard Enterprise Risk Management
methodology. The risks have been prioritised within the Group Risk Register, and discussed by the relevant
Committees. For the physical climate-change risks, the standard assessment methodology has been enhanced
with a scenario analysis (as described in the chapter “Scenario Analysis” of this report).
The climate-change risks are monitored as part of Eurofins’ Enterprise Risk Management process and reviewed
at least yearly. Given the long-term nature of physical climate change risks, the scenario analysis is updated
periodically, typically every two years.
Climate-related risks and opportunities
The climate-change risks and opportunities are documented in the Group Risk register and summarised in the
following tables. The reported mitigations / adaptation strategies are the main initiatives at Group level across our
entire network of companies and are additional to the other efforts that each Managing Director of a Eurofins’ Entity
may have defined locally.
Table 1. Risks
Category /
Timeframe
Risks
Possible
Consequences
Main Mitigations /
Adaptation strategies
Transition,
Technology
Mid-term
• Costs of
transition to
lower emission
technology.
• Capital investments in
technology development,
• costs to adopt / deploy
new practices and
processes,
• write-offs and early
retirement of existing
assets,
• power outages because
of grid overload.
• Implementation of CO
2
reduction targets for
Eurofins’ leaders, initiating leadership-driven CO
2
reduction initiatives across all our businesses,
such as local projects to reduce electricity
consumption and install solar Photo Voltaic (PV)
systems or other sources of renewable energy at
Eurofins sites,
• progressive transition to renewable energy and
virtual Power Purchase Agreements (vPPA),
• progressive transition to energy-efficient
buildings by improving the energetic performances
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
81
Category /
Timeframe
Risks
Possible
Consequences
Main Mitigations /
Adaptation strategies
Transition,
Market
Mid-term
• Increase of
price of carbon
(carbon taxes,
emission trading
systems, price
of carbon
credits and
green energy).
• Financial impact,
increase of costs.
and developing best practices (e.g., the use of
renewable energy, reduction of electricity
consumption, insulation projects),
• progressive transition to a fleet of electric
vehicles,
• where possible and accepted by customers,
transition to miniaturised chemical analysis that
use smaller volumes of reagents, less energy, and
less consumables.
• monitoring of energy price development,
• purchasing is investigating the most cost-
effective options to source an increasing portion of
electricity from renewable sources,
• in addition to its investments in Livelihood
Carbon Funds 2 and 3 (“LCF2” & “LCF3”),
Eurofins has sourced the carbon credits it believes
will be required for the mid-term to offset its
emissions in Scope 1 and 2 so that it can reach its
objective of carbon neutrality from 2025 onwards.
Transition,
Policy and
Legal
Mid-term
• Incorrect
reporting of CO
2
emissions
disclosure
(including
Scope 3
categories).
• Organisational efforts
and costs to adopt and
deploy new processes,
• involuntary (accidental)
disclosure of incorrect
information, consequent
damage to Eurofins
reputation,
• potential loss of
customers and suppliers
that require commitment
to challenging targets and
stringent reporting
standards.
• Established global network of CO
2
Champions, to
collect data and foster CO
2
reduction initiatives,
• implemented trainings on CO
2
measurement and
reduction opportunities,
• continuous improvement of the Carbon Footprint
Measurement system (definitions, processes,
documentation, quality control), enhancing Scope
3 reporting with supplier-provided data,
• audits of the ESG metrics and KPIs performed
by GIAT (Group Internal Audit Team),
• ESG report is subject to independent review by
leading professional services firm.
Physical,
Acute:
Mid/Long-
term
• increasing
likelihood and
severity of
extreme
weather events,
such as storms
and floods,
directly
impacting our
operations or
supply chain.
• Safety: possible injuries
/ fatalities to employees
and others,
• business interruption,
• financial consequences,
including loss of
revenues, material
damage to property,
reparation costs,
• reducing availability and
increasing cost of
insurance coverage.
• Natural hazard risk modelling,
• natural hazard assessment embedded in Real
Estate projects,
• scenario analysis on river flood risk and
subsequent awareness campaign for leaders of
relevant Eurofins Sites (see p. 84).
• physical inspections, performed by qualified
engineers, of selected Eurofins sites, subsequent
recommendations to improve prevention
measures,
• business continuity planning,
• sites’ specific standard operation procedures,
• property damage and business interruption
insurance.
Physical,
Chronic:
Long-term
• significant
increase of very
hot days and
heat waves in
regions where
Eurofins
companies
operate.
• Investments in building
insulation and air
conditioning systems to
adapt our operations,
ensure well-being and
productivity of employees,
and avoid equipment
failures.
• increase in energy costs
and CO
2
emissions.
• Scenario analysis on heat waves driven by
climate change (see p. 85),
• definition of Group guidelines to design and
renovate buildings with the objective of carbon
neutrality (e.g., introducing technologies for
natural cooling),
• business continuity planning,
• property damage and business interruption
insurance.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
82
Table 2. Opportunities
Category /
Timeframe
Opportunities
Possible Consequences
Adaptation strategies
Opportunities
Energy
Source:
Mid/Long-
term
• Use renewable sources
of energy and on-site
energy production.
• Limit financial exposure to
the future energy price
fluctuations,
• reduced exposure to GHG
emissions and therefore
decreasing sensitivity to
changes in cost of carbon,
• benefit of local supportive
policy incentives from
governments
• reputational benefits.
• Local projects to install solar
photovoltaic (PV) systems at Eurofins
sites, supported by a central Real
Estate team,
• evaluation of scalable renewable
project opportunities, such as on-site
and off-site virtual Power Purchase
Agreements (vPPA).
Opportunities
Resource
Efficiency:
Mid/Long-
term
• Move to more efficient
buildings.
• Reduction in operating
costs,
• Increase in market value of
buildings,
• possibility to benefit from
local incentives such as
supportive transition policies
from governments,
• improvement of employee
satisfaction, health, and
safety.
• Defining the criteria that should be
considered when deciding upon the
relocation of laboratory operations to
include among others, the carbon
footprint of the building; this systematic
approach will tendentially drive the
shift to more efficient buildings.
Opportunities
Products and
Services:
Mid-term
• Increasing demand for
testing services to
measure, reduce and
certify carbon emissions
and to foster circular
economy (e.g., reducing
reliance on fossil fuels,
restricted chemistry,
waste disposal to landfill,
recyclability of
packaging, etc.).
• Positive impact on
Consumer Product
Testing (including services
such as, carbon
measurement,
biodegradability, ecotoxicity,
life cycle assessment, vegan
certification, environmental
audits, consultancy to
develop customers’
sustainability strategies, and
certifications).
• Implemented “Eurofins Sustainability
Services” (see p. 104) to deliver
testing and validation services to those
businesses and industries that want to
demonstrate sustainable products,
services and behaviours.
• Increasing demand for
services to support and
certify customers’
transition to more
sustainable farming
practices.
• Positive impact on Agro
Testing activities such as
soil carbon storage, water
holding capacity, soil
biodiversity, soil pollution,
methane emissions from
livestock production, etc..
• Implementation of “Eurofins Soil
Health Solutions” to deliver auditable
metrics for farmers, advisors and
agricultural product companies, in the
transition to a more sustainable
farming,
• development of a benchmarking
index for methane emissions from
livestock feed, coupled with the
implementation of new testing
methods, to empower farmers in
selecting feeds that reduce the carbon
footprint of meat and milk production,
• monitoring of legislative changes
related to sustainable farming and CO
2
capture certifications,
• initiatives are underway involving
organisations such as VERRA, FAO,
ISO, and the EU to achieve
stakeholder acceptance,
• evaluation of potential business
impact in various regions.
• Increasing demand for
testing to optimise soil
health, maximise crop
growth, create more
resilient seed
technologies that
facilitate better protection
against disease, drought,
and rain and other
climate related risks.
• Positive impact on Agro
Testing and Agro Science.
Activities such as soil
optimisation support, rebuild
soil health through metrics
and measurements, and
scenario analysis of different
farming options.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
83
Category /
Timeframe
Opportunities
Possible Consequences
Adaptation strategies
• New testing
opportunities in Lithium-
Ion battery recycling
industry (expected to
grow significantly, tied to
growth of EV industry,
and amplified by raw
material shortages), and
more in generally the e-
mobility industry.
Positive impact on Materials
and Engineering Science
Business Line in terms of
demand for services such as
quality control / testing of
materials.
• Evaluation of market potential,
ongoing research on industry,
technology, and analysis techniques.
Scenario Analysis of physical climate change risks
Two of the identified physical climate-change risks, i.e., increase of riverine floods and increase of heatwaves, have
been assessed with a scenario analysis. Considering the underlying uncertainty and the long-term perspective,
several scenarios have been analysed, using two different timelines (i.e., 2030 and 2050) and two global warming
scenarios selected from the Representative Concentration Pathway (RCP) model. In the RCP model, several
different pathways describe different climate futures, all of which are considered possible depending on the volume
of greenhouse gases (GHG) emitted in the years to come. The selected scenarios are:
• RCP4.5: global average temperature increase of ~2°C by the end of the century
• RCP8.5: global average temperature increase of ~4°C by the end of the century
Through this analysis, Eurofins simulated how current assets’ exposure to such risks could change in the future
and defined adaptation strategies as outlined in the following sections.
Impact of climate change on riverine flood risk:
Most of Eurofins’ sites (representing 94% of total assets) have been analysed in a consolidated manner using their
geo-localisation coordinates, to assess how the current exposure to the risk of riverine flood could change in the
future due to climate change. The outcome of the analysis is reported in Table 3:
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
84
Table 3. Percentage of Eurofins’ assets located in regions likely to become more exposed to flood risk as of
December 2023.
1,2,3,4
Flood risk
2030
2050
RCP4.5
+~2°C by
2100
RCP8.5
+~4°C by
2100
RCP4.5
+~2°C by
2100
RCP8.5
+~4°C by
2100
Unchanged exposure
87.5 %
88.1%
88.7%
99.0 %
More exposed – moderate increase
10.9 %
9.7 %
9.3 %
0.7 %
More exposed – strong increase
1.6 %
2.2 %
2.0 %
0.3 %
1
Source: Eurofins elaboration on Aqueduct database.
2
Method: Baseline for the calculation is the current expected inundation depth at a given flooding return period. Future scenarios
use projected inundation depth at the same return period. Reported proportions show the percentage of assets located in regions
where the projected inundation depth in the future scenarios is expected to remain unchanged, moderately increase or strongly
increase.
3
Note: The analysis has been conducted with the sole purpose of understanding the general risk tendency and to identify the
geographical areas where a more detailed analysis is necessary to confirm the above indications.
4
Note: The scenario RCP 8.5 in 2050 shows a significant risk decrease compared to the projections in 2030. This risk reduction
is probably because the underlying strong temperature increases may lead some of the analysed regions to shift to a completely
different (dryer) climate group, with different seasonal precipitation and temperature patterns.
Findings: By 2030, a portion of Eurofins’ assets could be progressively more exposed to riverine flood risk. This
potential increase, moderate in most cases and strong in few cases is consistent in the two analysed scenarios. It
is important to note that the risk will increase only in locations that are currently already exposed to flood. Eurofins’
sites in these locations have already developed flood mitigation measures and response plans and update them
on a regular basis. Eurofins sites that are currently not exposed to flood risk will remain as such. Consequently,
no adaptation measure is necessary for these locations. Eurofins implemented a standardised process for
assessing natural hazard exposure in the real estate selection process. This assessment is an integral part of our
due diligence and the exposure to natural hazards is considered alongside other factors when evaluating and
selecting among alternative locations.
Adaptation: During 2022, the Eurofins Group Service Centre conducted an awareness campaign among the
leaders of the Eurofins companies located in sites where a strong increase of risk exposure is expected. Leaders
have been encouraged to review and update their local flood risk assessment and to evaluate if the pre-existing
flood response and mitigation measures are still sufficient in consideration of the changing conditions.
Impact of climate change on heat waves:
Across the globe, hot days are getting hotter and more frequent. A significant increase in heat waves may be a
relevant threat to our operations and require a certain level of adaptation. To analyse this trend, we investigated
the expected number of very hot days within one year (i.e., days with a max temperature above 35 degrees Celsius)
in the selected scenarios. This analysis was performed at the regional level for most of Eurofins’ sites (representing
~99% of total assets). The outcome is reported in Table 4:
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
85
Table 4: Percentage of Eurofins’ assets located in regions likely to become more exposed to heat waves as of
December 2023.
1,2,3
Very hot days
2020 - 2040
2040 - 2060
RCP4.5
+~2°C by
2100
RCP8.5
+~4°C by
2100
RCP4.5
+~2°C by
2100
RCP8.5
+~4°C by
2100
Unchanged exposure
95.2 %
92.5%
71.7 %
66.0 %
More exposed – moderate increase
4.8%
6.8%
23.7 %
21.2 %
More exposed – strong increase
-
0.7%
4.6 %
12.8 %
1
Source: Eurofins elaboration on CCKP database (World Bank Group, Climate Change Knowledge Portal).
2
Method: the analysis is performed at regional level, being a region defined as the first administrative level below the country.
Baseline for the calculation is the yearly average number of very hot days in a given region in the CMIP6 Historical Reference
Period, 1995-2014. Future scenario for periods “2020-2040” and “2040 - 2060” are calculated using projected yearly average
number of very hot days within the respective period. Reported proportions show the percentage of assets located in regions
where the number of very hot days in a year is expected to remain unchanged, moderately increase or strongly increase.
3
Note: The analysis has been conducted with the purpose of understanding the general risk tendency and the geographical areas
where a more detailed analysis is necessary to confirm the above indications.
Findings: In the earlier observation period (2020-2040), only a small portion of Eurofins’ assets (between 4.8% and
7.5%) is likely to become more exposed to heat waves, facing (mostly) only a moderate increase. The trend will
most likely become more relevant in the very long term. In fact, the analysis of the later period (2040-2060) indicates
that a larger portion of Eurofins assets (between 28.3% and 34.0%, respectively in the scenario RCP 4.5 and RCP
8.5) is likely to become more exposed.
Adaptation: In consideration of the findings, Eurofins believes that the direct impact on its operations of heat waves
in the short- and mid-term is limited. In the long term, employees and operational equipment may require additional
cooling to operate optimally, potentially resulting in a requirement for additional investments and increased energy
consumption.
In the coming years, Eurofins will facilitate a more detailed analysis in the regions where a strong increase of risk
exposure is expected, aimed to timely evaluate if local adaptation measures are necessary.
Climate change mitigation and adaptation policies and levers
In alignment with the Paris Agreement and in pursuit of the Science Based Targets initiative’s (SBTi) near-term
goals, Eurofins aims to significantly reduce its carbon footprint through decarbonising energy use, enhancing
operational efficiency, and promoting sustainable practices in partnership with its suppliers.
Eurofins recognises climate change as an urgent global challenge. We are committed to reducing our Greenhouse
Gas (GHG) emissions in line with our near-term targets and strengthening our operations against the impacts of
climate change.
Eurofins is committed to setting and meeting SBTi-aligned near-term emission reduction targets. These targets will
be achieved through a reduction of consumption (e.g., improving energy efficiency of buildings, equipment and
processes), lowering emission intensity per consumption (e.g., increasing share of renewable electricity) and
working closely with our supply chain partners. Eurofins will continue to transition to low-carbon energy sources
across its network of laboratories, aiming for year-over-year increases in renewable electricity procurement,
prioritising locations where renewable resources are most accessible and cost-effective. Eurofins will actively
collaborate with suppliers to improve sustainability practices, focusing on emission reductions, eco-friendly
sourcing, and waste minimisation. We will, when possible, prioritise suppliers who demonstrate strong sustainability
performance. To build resilience, each laboratory is requested to develop climate adaptation measures specific to
relevant regional and local climate challenges. This includes strategies to mitigate operational disruptions and
safeguard employee health and safety.
The main levers to achieve the significant emission reduction required for Eurofins’ Scope 1 & 2 SBTi target will be
energy efficiency initiatives, electrification of car fleet and equipment and, in particular, renewable energy
procurement. Eurofins will continue to invest and improve building sustainability across the network. This includes
vacating or renovating older buildings with poor energy efficiency, consolidation of sites and optimisation of space
utilisation as well as sufficient insulation and smart temperature management.
This will be complemented by the deployment of energy management systems across key facilities to optimise
electricity use and the implementation of energy-efficient HVAC systems (including use of renewable heating
sources where economical, e.g., heat pumps, biomass, geothermal heating), LED lighting, and automated controls
to minimise energy waste. Many Eurofins companies will initiate a progressive transition to fleets of low emission
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
86
vehicles where feasible, with charging infrastructure established across the majority of key sites. Energy savings
will also be achieved through procurement of energy efficient equipment.
Systematic best practice sharing is an important component and lever to ensure the results of local initiatives are
leveraged and all energy consumption reduction opportunities are realised. These are complemented with local
targets set by each business.
Major levers will include the increase of the share of renewable, “green”, energy procurement, e.g., through Energy
Attribute Certificates/Guarantees of Origin (GOs), Renewable Energy Certificates (RECs), Green tariffs, virtual
Power Purchase Agreements (vPPA), and on-site renewable electricity generation (e.g., solar panels).
For Scope 3 decarbonisation the most important lever will be working with suppliers to jointly reduce emissions in
the value chain. The Eurofins Network of companies favours suppliers that support Eurofins' emission reduction
targets by reducing their own emissions (e.g., through the use of renewable energy), committing to SBTi targets,
providing Eurofins with accurate reporting at item level (lifecycle assessment) and/or aggregated level, and
collaborating on eco-friendly solutions throughout our supply chain. This criteria, and progress on this criteria, will
be a consideration when awarding contracts. Internally, Eurofins will continue to share best practices to reduce the
use of chemicals and other consumables, drive miniaturisation and thus not only save consumables and energy,
but also reduce waste.
Several scenarios were considered to analyse climate change risks, see sections above on climate-related risks
and opportunities and scenario analysis of physical climate change risks. Eurofins is not excluded from the EU
Paris-aligned Benchmark.
Carbon neutrality objective and SBTi targets
The topic of climate change is high on the global agenda and safeguarding our planet and its resources is in line
with our mission of Testing for Life. Eurofins considers its positive impact on the environment and humanity a
priority. Eurofins further acknowledges its role as a global company to act responsibly by reducing its negative
impact on the environment, and on the climate specifically. Eurofins acknowledges the need to limit the increase
in global warming to well below 2 degrees Celsius (preferably to 1.5 degrees Celsius) as set out by the Paris
Agreement in 2015.
Eurofins’ Leaders and Board set a public target in 2020 for the Group to become carbon neutral by 2025. At the
beginning of 2024, Eurofins progressed to the next step and has committed to setting ambitious targets according
to SBTi (Science Based Targets initiative; https://sciencebasedtargets.org/) standards.
SBTi targets for 2030 will include both targets for significant Scope 1 and 2 emission reductions as well as Scope
3 supply chain emission mitigations. Eurofins aims to submit SBTi targets during 2025.
Eurofins plans to reduce absolute Scope 1 and 2 GHG emissions 46.2% by 2030 from a 2019 base year.
The Scope 1 and 2 target is compatible with limiting global warming to 1.5°C.
The baseline year is planned to be 2019 to exclude effects from COVID-19 pandemic, that affected Eurofins'
business and CO
2
emissions during the 2020-22 period. Eurofins adapts its baseline annually to reflect structural
changes due to acquisitions. When acquired companies are included in the reporting scope, the emissions for the
previous years and 2019 are collected, estimated, or extrapolated for the year 2019. Targets are adapted
accordingly from the adjusted baseline. The target year is planned to be 2030 for SBTi targets to align with ESRS
target setting and disclosure requirements.
The targets will be determined using the same methods and scope as the reported carbon footprint data, so that
the consistency of the targets with the GHG inventory and its boundaries is ensured. The following GHG gases will
be covered: carbon dioxide (CO
2
), methane (CH
4
), nitrous oxide (N
2
O), hydrofluorocarbons (HFCs),
perfluorocarbons (PFCs) as well as sulphur hexafluoride (SF
6
) and nitrogen trifluoride (NF
3
), the latter two not being
applicable to Eurofins.
Whilst carbon neutrality is a challenge to achieve in a decentralised organisation, measurement is the foundation
of pursuing this goal. Quantifying Eurofins’ greenhouse gas emissions allows us to analyse our carbon footprint
profile and to identify the best opportunities to launch appropriate reduction projects guided by sound data and
strategic assessment. Furthermore, it is imperative to monitor our emissions to be able to track progress and adjust
where needed.
In addition to its carbon targets, Eurofins measures, tracks, and discloses the amount of green electricity as
percentage of total electricity consumption as part of its annual CO
2
data collection process and ESG disclosures.
In this context, green electricity is defined as coming from 100% renewable source (Power Purchase Agreements
(PPA), Energy Attribute Certificates/Guarantees of Origin (GOs), Renewable Energy Certificates (RECs), and
Green tariffs). Eurofins aims to increase the percentage of green electricity year over year.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
87
In 2024 the green electricity consumed as percentage of total electricity increased from 23% to 27%.
2021
2022
2023
2024
Green electricity as percentage of total
electricity consumption
8%
20%
23%
27%
Carbon Footprint measurement scope and materiality assessment
The Greenhouse Gas Protocol (GHG) was used as guiding methodology for this carbon footprint measurement
exercise. The operational control approach has been used to define organisational boundaries and consolidation
criteria. The operational control approach is also used for operational boundary definition. All figures below refer to
market-based emissions. All key figures, including location-based emissions, are provided in the data tables on
page 148-149. In accordance with the GHG Protocol (GHG) all figures relating to CO
2
are pro-forma, i.e., all units,
including acquisitions, and the related FTE and revenues, are accounted for the period 1 January 2024 through 31
December 2024.
For the units not reported in 2023, CO
2
footprint data was also collected for the 2019-2023 period to have complete
data available for the full 2024 scope for 2019 (base year) and 2020-2024.
The following changes have been made to the historical 2019-2023 data compared to the data reported in 2023:
• Addition of emissions from companies acquired later during 2023 and early in 2024 for which data could
already be collected.
• Removal of emissions related to companies that were divested.
• All collected carbon footprint and consumption data are extrapolated to cover the entire Eurofins Group
(pro-forma). In 2023 and earlier years’ annual reports, carbon footprint data was reported as collected
(>95% coverage) without extrapolation.
Data was collected for >95% of Full-Time Employees (pro-forma) and >80% of sites accounting for >90% of net
floor area used (2023: ca 75% of sites and >85% of net floor area used). The sites excluded from the CO
2
emissions
collection are very small sites (e.g., drop-off points, storage) that are considered immaterial and acquisitions from
2024 that are not yet fully integrated. This only concerns a very small number of companies acquired in the second
half of the year.
In addition to the GHG emission data collected through our network of over 150 CO
2
Champions, an additional
Scope 3 screening was performed to determine emissions from categories not covered by our data collection,
notably emissions from purchased goods and services and capital goods purchases.
As a first step, Eurofins conducted a high-level screening of all Scope 3 GHG Categories, and the following
categories were deemed material:
1. Purchased goods and services (emissions caused by the production of goods (Non- CapEx) purchased
or services rendered);
2. Capital goods (emissions caused by the production of capital goods (CapEx) purchased);
3. Fuel- and energy-related activities (not included in Scope 1 or Scope 2) (indirect emissions from electricity,
heating and car fleet);
4. Upstream transportation and distribution (freight);
5. Waste generated in operations;
6. Business travel;
7. Employee commuting.
The table below provides details and reasons for excluding upstream leased assets and all downstream categories.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
88
Total emissions for Scope 1, 2 and 3, including the full Scope 3 (reported Scope 3 and additional Scope 3
screening) are estimated at ca. 850,000 tons CO
2
e market-based and ca. 880,000 tons CO
2
e location-based.
Scope 3 accounts for the largest share of emissions at around 80%. The emissions from the additional Scope 3
screening comprise the Scope 3 GHG Categories 1 and 2 (purchased goods and services and capital goods – as
far as not already reported as part of the measured Scope) – and amount to ca. 350,000-400,000 tons CO
2
e.
Emissions from purchased goods and services is by far the largest Scope 3 category and amounts to almost 50%
of all emissions. The second largest category overall is electricity followed by emissions from capital goods
purchases and employee commuting.
KPI summary and actions taken
All data below and in the data table on page 148 relate to measured Scope 1, 2 and 3 emissions and exclude the
data estimated by the additional Scope 3 screening.
Different from the 2023 ESG report, all collected carbon footprint and consumption data are extrapolated to cover
the entire Eurofins Group (pro-forma). In 2023 and earlier years’ annual reports, carbon footprint data was reported
as collected (>95% coverage) without extrapolation. Together with the change in scope due to acquisitions this
resulted in an increase in the historical (2019-2023) emission and consumption figures compared to 2023 (and
earlier years).
Main metrics used to track and evaluate performance are absolute emissions and, as Eurofins is a growing
company, carbon intensity (tCO
2
e/FTE and tCO
2
e/mEUR).
• Emission reduction of ca. -3.8% vs 2023 achieved.
• Carbon intensity tCO
2
e/mEUR reduced to 67 tCO
2
e/mEUR by ca. -7.1% vs 2023 and ca. -32% vs 2019.
• Carbon intensity tCO
2
e/FTE reduced to 8.1 tCO
2
e/FTE by ca. -1.7% vs 2023 and ca. -20% vs 2019.
• Double digit reduction in absolute emissions and carbon intensity for freight and high single digit reduction
for business travel achieved.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
89
• Electricity emissions could be reduced despite a ca. 4% increase in electricity consumption due to an
increase in the amount of green electricity procured.
• The 2023 signing of the Serbal solar Power Purchase Agreement in Spain underscored Eurofins’ intent
and commitment to the utilisation and integration of green energy across the energy mix used by Eurofins
businesses, many projects are underway across the network that support this aim. This project is expected
to provide Guarantees of Origin (GOs) for 76,000 MWh p.a., which is equivalent to ca. 15% of Eurofins’
electricity consumption worldwide. The Serbal Solar project is scheduled to deliver renewable electricity
from Q1 2025.
• In early 2024, Eurofins signed the SBTi commitment letter joining the growing group of companies setting
ambitious science-based targets.
Eurofins’ leadership and the GSC Carbon Reduction team took many actions to advance and maintain our carbon
footprint measurement and reduction initiatives in 2024 including:
• Continued to collect carbon footprint data covering >95% of Full-Time Employees.
• Eurofins is now tracking its carbon reduction achievements by an annual bottom-up performance review
of the previous year’s carbon emissions, current year’s targets and next year’s target. These targets are
also included in the individual performance reviews of all Eurofins leaders and make up part of their
variable compensation. This is done as part of the annual ESG budget exercise (in addition to the
operational financial budget activity) that requires quantifiable reduction targets for Scope 1, 2 and 3 CO
2
emissions (in tCO
2
e/FTE).
Key actions in 2024 include the review of renewable electricity sourcing resulting in an increase of the portion of
green electricity from 23% in 2023 to 27% in 2024.
• Eurofins continued its investment in renovating and improving the building sustainability of key sites.
Examples are given at the end of this section under “Eurofins Sustainability in Action” of real estate carbon
footprint reduction projects.
• Eurofins has launched its Sustainable Procurement Programme and intensified its supplier engagement.
Focus areas were improving data quality, requesting supplier emission factors and discussions on eco-
friendly solutions and alternative products with lower emission profiles as well as the expectation of a
reduction of supplier’s own emissions.
• These key actions will be continuously pursued until 2030 to achieve our SBTi targets.
• The bi-monthly meetings with 150+ local CO
2
Champions were continued in 2024. Topics discussed
included processes and tools to facilitate data collection and analysis, emission reduction targets, and
general communication.
• The continuation of a mandatory “Carbon Footprint Reduction” Training Module to educate all employees
about the Eurofins carbon footprint reduction initiative and to provide ideas and guidance for carbon
reduction projects.
Emission reporting and Carbon Intensity
Eurofins’ overall 2024 emissions for Scopes 1, 2 and part of 3 have been determined as 470,848 metric tonnes of
CO
2
equivalents. For the same scope, 2019 and 2020-2023 emissions were also determined. Refer to the graph
below for total GHG emissions values for 2019-2024.
1
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Total emissions – market-based
539
530
564
527
489
471
0
100
200
300
400
500
600
2019 2020 2021 2022 2023 2024
GHG emissions in 1000 metric tonnes CO
2
e (market-based)
Total CO2e emissions
ktCO
2
e
Title: CO2 emissions and energy and water consumption 2019-2022 Document Name: Charts for ESG report.pptx EDR: N/A Document owner: Florian Heupel Last modified on: 07/02//2023
Final
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
90
Scope 1 includes emissions from stationary combustion (heating on-site), mobile combustion (company cars) and
fugitive emissions (refrigerants). Process emissions were determined to be immaterial. For the few units where
process emissions were measured for regulatory requirements, they were deemed insignificant.
Scope 2 covers emissions related to purchased electricity and heating (off-site emissions, e.g., district heating).
Scope 3 includes the following sources of emissions: selected purchased goods and services (chemicals,
Information and Communication Technology (ICT) purchases and Eurofins’ own data centres and cloud computing
usage (“eWaste”), paper, water/wastewater), fuel- and energy-related activities not covered in Scopes 1 and 2
(indirect emissions from electricity, heating and car fleet), upstream transportation and distribution (freight), waste
generated in operations, business travel, and employee commuting.
Emissions from capital goods and the majority of purchased goods and services have been excluded from the
current inventory – these are only included in the Scope 3 screening but not in the measured Scope 3 as reported.
Since 2023, the report has included emissions from cloud computing (Azure and 365 usage) under ICT purchases.
These emissions result largely from indirect emissions as Eurofins’ provider uses renewable energy predominantly.
In 2024, Scope 1 emissions account for ca. 13% of emissions, Scope 2 for ca. 25% and the examined Scope 3
categories for ca. 62%. The distribution by Scope is almost identical to the data for 2023.
Notably, Scope 3 emissions were reduced by more than -5% (specifically freight and business travel). Freight
emissions were lower than in 2023 due to increased availability of supplier data with reduced emissions and a
lowered emission factor for the remaining spend-based emission determination.
The largest single source of emissions was electricity (direct and indirect emissions), representing over thirty
percent of all emissions. Other major emission sources, listed in order of magnitude, were purchased chemicals,
employee commuting and freight.
In comparison to the emissions data published in the 2023 report, the 2024 report:
• Covers a similar number of FTEs and sites with >95% of FTE and >80% of sites (2023: >75%)
analysed.
• Is comprised of more accurate data (enhanced data collection tools and refined methodologies) for the
current year. Methodologies, processes, and tools for data quality checks were further improved in 2024.
• Covers acquisitions from late 2023 and early 2024, with historical data added for 2019-2023.
• All collected carbon footprint and consumption data are extrapolated from the measured data to cover the
entire Eurofins Group for all years. In 2023 and earlier years’ annual reports, carbon footprint data was
reported as collected (>95% coverage) without extrapolation.
Due to the extrapolation from the measured to the full scope and the addition of historical acquisition data, figures
for 2019-2023 changed from what was reported in 2023.
Carbon intensity by revenue significantly decreased by -7.1% in 2024 at a higher rate compared to absolute CO
2
emission reduction (-3.8%) as pro-forma scope revenues increased compared to 2023. Over the last 5-year period
from 2019 to 2024, emission intensity in tCO
2
e/mEUR decreased significantly by ca. -32% from 99 to 67
tCO
2
e/mEUR. This indicates sustainable efficiency in our operations and reflects the advances made to reduce
input required to generate revenues and growth.
2
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Emissions by scope (market-based)
72
72
75
65
61
62
155
144
143
126
122
119
311
314
346
336
306
290
0
50
100
150
200
250
300
350
400
2019 2020 2021 2022 2023 2024
Scope 1, 2 & 3 emissions (in 1000 tCO
2
e) (market-based)
Scope 1 Scope 2 Scope 3
ktCO
2
e
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Final
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
91
The relative emissions per FTE for Scopes 1, 2 and 3 were approximately 8.1 metric tonnes of CO
2
equivalent per
FTE (2023: 8.3 tCO
2
e/FTE) and could be reduced by -1.7%, albeit at a lower rate compared to absolute CO
2
emission reduction as pro-forma FTEs decreased compared to 2023.
When analysing the evolution of the relative footprint per FTE, we observe a consistent reduction of Eurofins’ CO
2
footprint over the past years with a ca. -20% reduction compared to 2019 figures (8.1 tCO
2
e/FTE 2024 vs. 10.2
tCO
2
e/FTE 2019). Some variation between the countries and Business Lines could be observed. This is used to
identify improvement potential and inform target setting.
As for location-based emissions, emission intensity per FTE was reduced by -1.6% compared to 2023 to 8,7
tCO
2
e/FTE (2023: 8.8 tCO
2
e/FTE) and ca. -16% against the base year 2019 (2019: 10.3 tCO
2
e/FTE).
Energy consumption and energy mix
Eurofins’ total energy consumption increased in 2024 by ca. 3.4% compared to 2023. Overall, ca. 804,000 MWh
were consumed (2023: ca. 778,000 MWh). The consumption distribution remained almost the same as previous
years with ca. 62% electricity, ca. 25% heating and ca. 13% from vehicle usage.
Electricity consumption rose by ca. 20,000 MWh (4.3%), whereby the increase in consumption of renewable
electricity (by ca. 23.000 MWh to ca. 135,000 MWh) resulted in a decrease in standard electricity consumption of
ca -3,000 MWh (from 364,000 MWh in 2023 to 361,000 MWh in 2024).
Heating energy consumption increased by ca. 6,000 MWh (3.1%) to ca. 200,000 MWh while energy consumption
from vehicle usage was almost unchanged at 108,000 MWh.
Relative energy consumption per million Euro revenue remained unchanged in 2024 with 114 MWh/mEUR (2023:
114 MWh/mEUR), while energy intensity per FTE increased by 5.6% from 13.2 MWh/FTE to 13.9 MWh/ FTE.
3
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Carbon intensity per mEUR (tCO2e/mEUR)
13
11
10
9
9
9
28
23
19
18
18
17
57
50
46
47
45
41
0
20
40
60
80
100
2019 2020 2021 2022 2023 2024
Carbon intensity per mEUR (tCO
2
e/mEUR) (market-based)
Scope 1 Scope 2 Scope 3
75
74
tCO
2
e/mEUR
99
85
72
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67
Final
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Carbon intensity per FTE (tCO2e/FTE)
1.4
1.3
1.3
1.1
1.0
1.1
2.9
2.7
2.5
2.1
2.1
2.1
5.9
5.8
6.0
5.7
5.2
5.0
0
2
4
6
8
10
12
2019 2020 2021 2022 2023 2024
Carbon intensity per FTE (tCO
2
e/FTE) (market-based)
Scope 1 Scope 2 Scope 3
tCO
2
e/FTE
10.2
9.9
8.1
Title: CO2 emissions and energy and water consumption 2019-2022 Document Name: Charts for ESG report.pptx EDR: N/A Document owner: Florian Heupel Last modified on: 07/02//2023
8.9
Final
8.3
9.8
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
92
Sourcing renewable energy is the biggest lever to decarbonise emissions and Eurofins has significantly increased
the portion of green electricity sourced for use in its electricity mix from 8% in 2021 to 27% in 2024 (23% in 2023).
Beyond the focussed efforts to source more renewable electricity, additional local site energy reduction initiatives
include converting to LED lights, behaviour changes in the laboratories and office areas (closing fume hood sashes
when not in use, using light sensors where possible, turning off or unplugging IT equipment when not in use, etc.),
monitoring default set temperatures in buildings for heating and cooling to increase efficiency, and purchasing
energy efficient equipment. All these efforts contributed to the reduction of our overall energy consumption.
A look at the long-term development of electricity consumption per revenue shows a significant reduction in energy
intensity of -27%. A similar trend can be observed in energy consumption per FTE (-14% compared to 2019), albeit
less pronounced.
5
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Energy usage
458,542
445,934
451,426
473,468
475,902
496,368
278,332
265,619
270,903
211,047
193,586
199,684
116,583
116,175
115,153
113,797
108,221
107,923
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2019 2020 2021 2022 2023 2024
Electricity Heating Vehicles fuel
MWh
853,457
827,728
803,975
837,483
Title: CO2 emissions and energy and water consumption 2019-2022 Document Name: Charts for ESG report.pptx EDR: N/A Document owner: Florian Heupel Last modified on: 07/02//2023
777,709
Energy usage in MWh
Final
798,313
6
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Energy usage per mEUR (MWh/mEUR)
84
71
60
66
70
70
51
42
36
30
28
28
21
19
15
16
16
15
0
20
40
60
80
100
120
140
160
180
2019 2020 2021 2022 2023 2024
Energy usage per mEUR Revenue (MWh/mEUR)
Electricity Heating Vehicles fuel
MWh/mEUR
156
132
114
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114112
Final
112
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
93
Eurofins companies have invested in capacity to generate renewable energy on-site and continue doing so. As a
result, Eurofins was able to consume over 2,500,000 kWh of self-generated renewable electricity generated by
solar panels in 2024 this is ca. 0.5% of our electricity consumption.
Methodologies used and significant assumptions used to calculate or measure GHG emissions
The carbon footprint calculations utilised conform to the ISO 14064 standard and the Greenhouse Gas Protocol.
The operational control approach has been used to define organisational boundaries and consolidation criteria.
The operational control approach is also used for operational boundary definition. All figures refer to market-based
emissions unless explicitly stated otherwise. Where available, primary data for the reporting year was used. For
many categories, data for Q4 2024 were not available in time and alternative data from Q4 2023 – Q3 2024 was
used. When primary data was not available to report, emissions have been estimated from a similar entity or from
Eurofins’ average value for the category concerned. In particular for acquisitions, it was difficult to obtain values for
historic years and more datapoints had to be extrapolated.
The following GHG gases are covered: carbon dioxide (CO
2
), methane (CH
4
), nitrous oxide (N
2
O),
hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) as well as sulphur hexafluoride (SF
6
) and nitrogen trifluoride
(NF
3
), the latter two not being applicable to Eurofins.
Emission factors were sourced from renowned databases, e.g., ADEME, US EPA and IEA. Where available,
supplier emission reports were used. For electricity, country-specific emission factors were used, for other
categories global emission factors were used.
Indirect electricity emissions were determined using a global emission factor for renewable electricity or otherwise
using the relevant country’s IEA emission factors.
Other than in the 2023 ESG report, all collected carbon footprint and consumption data are extrapolated to cover
the entire Eurofins Group as of 2024 (pro-forma). In 2023 and earlier years’ annual reports, carbon footprint data
was reported as collected (>95% coverage) without extrapolation. Together with the change in scope due to
acquisitions this resulted in an increase of reported emission and consumption figures of 2019-2023 compared to
2023 (and earlier years).
Locked-in GHG emissions
Eurofins is a service company, with only a small part of its business selling products. The locked-in emissions from
such products are considered immaterial. Our (owned) buildings, laboratory equipment and car fleet vehicles are
major sources of locked-in emissions. Eurofins continuously invests into its building portfolio with the aim of
improving the environmental quality, implementing energy efficient HVAC-systems and increasing overall energy
efficiency. When sourcing laboratory equipment and purchasing vehicles, energy efficiency and operating costs
are major decision criteria, as we look to ensure that equipment and vehicles lower our energy consumption and
locked-in emissions.
Offsetting parts of our emissions – covering all Scope 1 & 2 emissions
On the path to carbon neutrality by the end of 2025, Eurofins is offsetting part of the emissions caused by its
operations. Eurofins retired 200,000 metric tonnes of carbon credits in 2024 (2023: 200,000 tonnes CO
2
). The
retired offsets fully cover the remaining Scope 1 and 2 emissions in 2024 (180,409 tonnes CO
2
e).
7
CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited.
Energy usage per FTE (MWh/FTE)
8.7
8.3
7.8
8.0
8.1
8.6
5.3
4.9
4.7
3.6
3.3
3.5
2.2
2.2
2.0
1.9
1.8
1.9
0
2
4
6
8
10
12
14
16
18
2019 2020 2021 2022 2023 2024
Energy usage per FTE (MWh/FTE)
Electricity Heating Vehicles fuel
MWh/FTE
16.1
15.4
13.9
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13.2
14.5
Final
13.5
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
94
Eurofins recognises the vital importance that the reductions in greenhouse gas emissions play in achieving our
carbon neutrality goal. Eurofins companies are committed to measuring and reducing their carbon emissions. While
efforts to compensate part of Eurofins’ unavoidable carbon footprint are voluntary and not mandatory for our
industry, they are a priority given the vital importance of reducing the speed of global warming.
In addition to its investments in Livelihood Carbon Funds 2 and 3 (“LCF2” & “LCF3”), Eurofins has sourced the
carbon credits it believes will be required for the mid-term to offset its emissions in Scope 1 and 2, so that it can
reach its objective of carbon neutrality from 2025 onwards.
All carbon credits retired for the year 2024 by Eurofins are verified against recognised, independent 3
rd
party quality
standards. Main quality criteria are the independence and transparency of the standard and its registry against
which the carbon credits are certified. Eurofins prioritises the reduction of its emissions and uses carbon credits as
a contribution to sustainability.
Eurofins uses carbon credits separately from the GHG emission and GHG emission reduction targets; there is no
netting of emissions with carbon credits in any part of this report.
9
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Carbon certificates retired on the path to carbon neutrality
53
100
150
200 200 200
0
50
100
150
200
250
2019 2020 2021 2022 2023 2024
Carbon certificates retired on the path to carbon neutrality in 2025
Carbon certificates retired
ktCO
2
e
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Final
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
95
Eurofins Sustainability in Action – Case Study - “Increasing Renewable Energy Sourcing: New
Eurofins Solar Project Highlights”
Eurofins Environment Testing – Wesseling,
Germany
In 2024 the photovoltaic panels coverage area at
Eurofins Environment Testing – Wesseling, Germany
has been doubled, covering 1,270 m² in total. The
panels produce approximately 187 MWh per year
with an estimated annual saving of 90 tCO₂e.
Eurofins Environment Testing – Malbork,
Poland
The photovoltaic array at the Eurofins Environment
Testing site in Malbork, Poland was expanded in
2023. The expanded capacity represents a 21%
increase in production (17 kW of power). This results
in an additional 16 MWh per year and a 12 tCO
2
e
p.a. decrease in carbon emissions.
Eurofins Environment Testing – Gradingnan, France
Eurofins Hydrologie Sud-Ouest installed a 156 kW solar carport in the site’s parking lot. This will result in the
production of 178 MWh per year of renewable electricity which covers 31% of the site’s consumption.
This will also represent an annual reduction of 10 tCO
2
e emissions.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
96
Eurofins Food and Feed Testing, Consumer Product Testing, BioPharma Product Testing,
Agroscience, National Service Centre and IT – Hamburg, Germany
The Eurofins site in Hamburg, Germany has
installed solar panels on one of the buildings
at the campus. The panels produce about
86,000 kWh renewable energy per year, which
is directly consumed by the laboratories on
site. In addition, sun protection films were
installed on all of the windows at the campus.
These protection films reflect most of the solar
radiation and contribute to energy
conservation by reducing the need to cool
down the facilities mechanically.
Other Real Estate carbon footprint reduction projects
The Eurofins Network of companies continues to drive progress and on-going improvements by integrating carbon
footprint reduction measures into new construction projects/leasehold improvements, as well as by embarking on
dedicated ‘carbon footprint reduction’ projects. The Real Estate team has continued to develop best practice
guidelines (technical, financial and safety related) with actions that Eurofins businesses can take to drive down
their carbon footprint through both new construction projects as well as renovations of existing laboratory facilities.
During 2024, examples of Real Estate carbon footprint reduction projects that have been planned, initiated and/or
completed include:
• In California, Eurofins entities are engaged in a solar panel project investment in partnership with
Lightfield Energy. With up to 14 locations being considered within California, we have already seen the
execution of five sites in the US. With 1.363 MW of solar panels installed in 2025, the consolidation of
panel purchasing could save over $1.5m vs purchasing them individually. The solar panels can produce
from 19% to 85% of each sites’ electrical demand.
o Fremont was one of many sites to install solar panels, utilising a combined roof and carport
array for optimum solar coverage whilst addressing possible logistical challenges. The solar
installation consists of a 335 kW system, generating approximately 551 MWh per year, which
equates to 76% of energy required on site.
o In Tustin, the system is exclusively carport solar, with a 539 kW setup generating 933 MWh per
year, covering approximately 27% of the total energy consumed on site per year. The energy
produced through this solar project will save up to 652 tons of CO₂ emissions.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
97
o In Fresno, a combined carport and roof PV array at three buildings consists of a 288 kW system,
producing a total of 435 MWh per year. This represents 85% of the total campus electrical
demand and 100% for two of three buildings.
o In Pomona, a roof installation features a 162 kW system, generating an average of 290 MWh
per year, representing 19% of the energy required on site.
• Moving beyond California, the initiative has sparked further solar projects including the Eurofins site in
DeSoto, Texas with production of 96 MWh per year from a 64 kW system, 27% of energy required on
site.
• Eurofins BioPharma Product Testing Saint Augustin, France celebrated the completion of a major climatic
chamber for GMP pharmaceutical storage in Saint Augustin. The expansion of 1,768 sqm accompanies
an existing laboratory. The site utilises solar panels, heat pumps, LED lighting and efficient insulation of
the exterior shell.
• In Vimodrone (Milan), Italy, the façade of the main building of the campus was refurbished to include the
installation of high-performance windows and panels which are estimated to account for a yearly energy
saving of about 150,000 kWh, corresponding to an annual reduction of 53 tons of CO
2
emissions.
• To support the long-term development of BioPharma Services businesses in Asia, Eurofins Advinus
began utilising a portion of its new 20,000 m² facility in Bangalore, India. The facility effectively utilises
natural lighting, ventilation, spacious building circulation and attractive landscaping to provide an
outstanding work environment.
• In Dandenong South (Melbourne), Australia, the Eurofins Environment Testing site has installed roof
solar panels. The 300 kW system will account for a 14% reduction in grid electricity consumption for the
site.
4.3.4 Pollution and Waste Management
GRI Standard/Disclosure: 306-2
Eurofins companies take pride in our approach to both energy and waste management through our testing services
and internal policies and practices. Every year, approximately 2.1 billion tonnes of waste are sent to landfills
globally, and raw materials and manufacturing operations are a huge contributor. The impact is significant, with
potentially toxic compounds degrading materials leaching into land, rivers, and oceans. Disposal of waste through
landfills should be a last resort. A primary aim of Eurofins companies is to reduce or eliminate waste before seeking
other solutions such as recycling, reuse, repurposing, energy generation, and biodegradation, etc.
The Eurofins Consumer Product Assurance (CPA) ‘Zero Waste to Landfill’ programme helps companies to achieve
their target of diverting 99% of waste away from landfills and towards more sustainable alternatives, such as by
reusing, recycling, repurposing, or generating energy from this waste, or using biodegradable materials where
possible. Through staff training and waste audits of manufacturing facilities, Eurofins CPA highlights how waste
can be minimised, and the recovery and reuse of residual waste optimised.
Responsible manufacturers are increasingly trying to reduce the quantity of persistent materials (materials that do
not degrade when disposed of) in their products, but sustainable alternatives have complex properties that require
testing. Eurofins Consumer Product Testing laboratories measure and verify the end-of-life characteristics of
products marketed as biodegradable, disintegrating, or compostable.
Additionally, it is vital to know whether the remains of biodegradation or disintegration release toxic or harmful
chemicals when mixed with soil or other compost. Eurofins Environment Testing companies provide ecotoxicity
testing to measure hundreds of different compounds that can be found in degradants, as well as analysing the
response of plants and weeds to the degradant-compost mixture.
These Eurofins services enable companies to factor sustainability into their choice of materials early in the product
design process, meaning fewer waste products and toxins end up in landfills and compost.
The materiality assessment on pollution indicates that the network’s exposure to pollution-related risks is limited.
Given the nature of the Group’s operations — a network of laboratories focussed on testing rather than the
transformation or production of goods — the value chain does not contribute substantial by-products, waste, or
pollutants. Waste generated within Eurofins mainly consists of samples received and processed from customers.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
98
Although a strategic emphasis on pollution mitigation services is of interest to some businesses, the Group has not
yet made this a primary revenue focus. Accordingly, we will continue to monitor developments in this area to assess
any changes in both actual and potential materiality for Eurofins.
Specific to the handling of waste management within the Eurofins Network of companies, local regulations for
waste disposal and recycling are strictly adhered to. Many sites have local facility management procedures that
provide guidance for disposal based on waste stream (e.g., hazardous laboratory waste, non-hazardous waste,
wastewater etc.) and recycling.
Eurofins Sustainability in Action – Case Study - “Reducing emissions through Recycling”
Eurofins Environment Testing and Eurofins Pharma Discovery Services – Taiwan
Three Eurofins companies (Eurofins SunDream Environmental Technical Co. Ltd.; Eurofins Panlabs Discovery
Services Taiwan, Ltd.; and Pharmacology Discovery Services Taiwan, Ltd) in Taiwan have taken steps to improve
their recycling processes resulting in more efficient waste sorting, an increase in the volume of materials being
recycled, more cooperative relationships with waste disposal contractors, a reduction in CO
2
emissions and a
positive contribution to environmental protection.
Previously, the recycling areas had unclear labelling, disorganised waste piles, and inefficient sorting. Changes
were implemented to provide clearly labelled bins with images of recyclable materials (e.g., paper, cardboard,
plastics, and metals. These actions facilitated a more organised space which improved the sorting habits of
employees and the efficiency of recycling.
Since implementing the new system, the Eurofins Pharma Discovery Services teams reported a 12.4% increase in
recycling when comparing data from January through August 2023 to January through August 2024 and estimate
a 5,700kg annual reduction of CO
2
emissions.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
99
4.3.5 Water and Marine Resources
GRI Standard/Disclosure: 303-1, 303-2, 303-3, 303-4, 303-5
Eurofins is committed to responsible water management practices and to contributing positively to sustainable
water and marine resource conservation. We acknowledge water as a valuable and limited resource, and we take
steps to minimise usage within our operations. Across the network, we monitor water usage and achieved notable
progress over recent years.
Some local site water reduction initiatives include the installation of water-saving toilets and low-flow faucets in
restrooms, laboratory equipment that uses recirculating/closed-loop water systems, irrigation systems with
sensors, landscaping with plants that do not require excessive watering and green building technologies to capture
precipitation on rooftops for reuse in building cooling systems. These measures resulted in significant reductions
in water consumption and wastewater discharge.
The impacts, risks, and opportunities related to water and marine resources are considered immaterial for Eurofins.
According to our double materiality assessment, water and marine resource challenges have no significant impact
on the Group’s value chain, and our core activities are not water-dependent nor involve intensive water use.
Operating within the Testing, Inspection, and Certification (TIC) industry, Eurofins’ activities require minimal water
consumption, and any water withdrawals or discharges are comparatively low.
Total water withdrawal was ca. 1.5 Mio. m
3
(2023: ca. 1.6 Mio. m
3
). Over the period from 2019 to 2024, the water
withdrawal per FTE was lowered by ca. 21% to ca. 26.0 m
3
/FTE. The wastewater discharge was ca. 1.5 Mio. m
3
(2023: ca 1.5 Mio m
3
) and relative output dropped ca. 10% in the period 2019 to 2024 to ca. 25.4 m
3
/FTE.
Water consumption is very low as almost all water withdrawn is discharged.
8
CONFIDENTIAL AND PROPRIETARY - © Eurofins Scientific (Ireland) Ltd [2020]. All rights reserved. Any use of this material without the specific permission of an authorized representative of Eurofins Scientific (Ireland) Ltd is strictly prohibited.
Water and Wastewater in m
3
/FTE
33.0
33.3
33.8
26.8
26.4
26.0
28.4
27.4
29.9
25.0
26.0
25.4
0
5
10
15
20
25
30
35
40
2019 2020 2021 2022 2023 2024
Water withdrawal and wastewater discharge in m
3
/FTE
Water Wastewater
m
3
/FTE
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Final
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
100
Eurofins Sustainability in Action – Case Study– “Conserving water using an innovative waste
disposal programme.”
Eurofins Environment Testing – St. Louis, MO (USA)
The Eurofins Environment Testing site in St. Louis, MO researched
and implemented a new process for disposal of acid and base
waste, which is commonly accumulated in large volumes in
environmental testing laboratories. The new process has resulted
not only in cost savings for the site but also in significant
conservation of water. The Beneficial Re-Use programme enables
the site to place used acid and base material into 55-gallon
polyethylene drums which can be sold as a neutralising agent to a
local industrial chemical plant. The drums are tested to ensure
they are compliant with the programme. For the acid waste, a
tanker truck removes the contents allowing for re-use of the poly
drums. Previously, the acid waste needed to be neutralised for
drain disposal which required the use of tap water flow into the
drains while the drums were being emptied, often resulting in high
volumes of water usage for days.
The water conservation results of this new process are impressive.
Between 2022 and 2023, 1.7M gallons of water were saved and
between 2023 and 2024 approximately 125,000 gallons of water
were saved. Total cost savings between 2022 and 2024 were just
over $9,000.
4.3.6 Biodiversity & Ecosystems
GRI Standard/Disclosure: 304-1
Biodiversity and ecosystems are considered immaterial to Eurofins' operations, as our role in the TIC industry does
not involve direct manufacturing or industrial processes that significantly impact biodiversity. While Eurofins
recognises the importance of biodiversity preservation, our immediate influence is minimal. Nonetheless, Eurofins
supports sustainable practices through agroscience and environmental testing, which indirectly contribute to
biodiversity efforts. However, these contributions are not significant from a quantitative or financial perspective.
Given our limited direct impact, we conclude that biodiversity considerations have low materiality within our
operations.
Eurofins Sustainability in Action – Case Study– “Creating Healthy Habitats in Parking Lots”
Eurofins Agroscience Services – Niefern-Öschelbronn, Germany
Because the loss of biodiversity is accelerating worldwide, the Eurofins team at the Eurofins Agroscience
Services site in Niefern-Öschelbronn, Germany wanted to find a way to counteract this issue by promoting local
biodiversity and providing animals and insects with food and shelter. Neglected green spaces that extend around
buildings and parking lots were a suitable area to pursue this effort because they have the potential to serve as
retreats and feeding niches for a variety of insects and other animals.
In December 2023, a green infrastructure project began to redesign unused areas around the parking lot to
create valuable habitats for insects and animals. Drought-resistant plants were carefully selected to meet the
challenges of climate change. A variety of habitats were created utilising limestone blocks and a variety of native
plants and flowers.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
101
Before After
4.3.7 Resource Use and Circular Economy
GRI Standard/Disclosure: 301-2
Eurofins does not consider the impacts, risks, and opportunities related to the circular economy to be material to
its own operations. As Eurofins only has few businesses producing small quantities of products, its exposure to
manufacturing, production, or distribution activities with direct impact on natural resources and the circular economy
is inherently limited. Additionally, the TIC industry’s strict protocols regarding sterilisation and hygiene do not permit
significant re-use of items, given the high standards required to ensure safety and accuracy.
Nevertheless, Eurofins is extremely aware of the impact that excessive consumption has had on our planet. Threats
to biodiversity and access to clean water are topics considered with extreme urgency in countries all over the world.
The United Nations continues to call on corporations and individuals to take action to find better ways to reduce
consumption in order to protect the precious resources that sustain life. The UN reports the following points for
serious consideration and action:
“The world faces a triple crisis of climate change, pollution and biodiversity loss. Escalating trends of forest loss,
land degradation and the extinction of species pose a severe threat to both the planet and people” “The demand
for water has outpaced population growth, and half the world’s population is already experiencing severe water
scarcity at least one month a year. Water scarcity is projected to increase with the rise of global temperatures as a
result of climate change. Sources: Forests, desertification and biodiversity - United Nations Sustainable
Development; Water and Sanitation - United Nations Sustainable Development. Effective management of scarce
resources and the implementation of meaningful conservation measures will be critical in order for our society to
protect the resources that we all depend on. It is imperative that organisations continue to find better ways to
achieve economic growth while avoiding environmental degradation.
Multiple Eurofins Business Lines carry out testing services that help to provide innovative solutions for monitoring
quality and maximising output of our natural resources and food sources.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
102
Eurofins Sustainability in Action - Case study – “Serving as an ESG Enabler for our
customers”
Eurofins Sustainability Services – Consumer Product Testing Worldwide
Sustainable consumer products play an important role in our efforts to both reduce the
manufacture and use of chemicals that harm the planet and contribute to a more circular
economy. Eurofins Sustainability Services, an initiative of Eurofins Consumer Product
Testing, develops new Testing, Inspection and Certification services to help our clients be
more sustainable. Examples of three services launched globally in 2023/24 that will not only
help our clients validate green claims and comply with current and forthcoming regulations
but will also take an extra step to help to contribute to more sustainable and safe supply
chains are as follows:
• Chem-ST® is a novel, validated system using state-of-the-art instrumentation and targeted tests to
quantitatively measure the presence of hundreds of substances in materials and products against global
hazardous chemical restrictions. Unlike traditional Restricted Substances List (RSL) chemical testing,
which focuses solely on target analytes, Chem-ST® detects both target analytes and other non-regulated
chemicals of concern within one system. This allows customers seeking chemical detection to rid their
supply chain of all potentially harmful chemicals, providing benefits beyond compliance and reducing the
risk of supply chain employees being exposed to these chemicals.
• Per- and polyfluorinated substances (PFAS), the so-called “forever chemicals”, are one of the most
concerning and discussed topics in sustainable chemistry. PFAS persists in the environment, are
bioaccumulative, and can be toxic to living organisms. Eurofins Sustainability Services’ new stand-alone
service, which is also a component of Chem-ST®, tests for all PFAS in consumer products, rather than
a selected number of targeted substances, by analysing Total Fluorine (TF) and Total Organic Fluorine
(TOF) as an indicator of PFAS contamination. By giving clients a complete picture of PFAS, they are
better able to eliminate all contaminants.
• Turning our linear economy into a circular one is also a priority focus of
sustainability measures with a wave of new legislation coming into force
across Europe particularly in 2024 and 2025, which promote ecodesign
and place requirements on manufacturers, brands and retailers. In
response to this, Eurofins Sustainability Services has developed a
Durability Testing and Verification Mark service. This new service tests the
durability of consumer products over and above the accepted published
industry standards, with verification marks awarded to more durable
products which can be used at point-of-sale. Products with an extended
lifespan yield more positive impact, as they reduce environmental burden.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
103
4.4 Social
Our entrepreneurial model empowers Leaders to create agile, people-centric workplaces within a strong
compliance framework. This framework ensures that all employment-related decisions are based on job-related,
upholding fairness, integrity, and inclusivity. It enables Managing Directors and Leaders to make fast, tailored
decisions that align with local market needs and regulatory requirements while fostering an ethical and respectful
environment.
We are committed to conducting business responsibly, in full compliance with national and international laws, and
ensuring equal opportunities for all. We recognise achievement, invest in training, and create rewarding career
opportunities within a network that values diversity, professionalism, and social responsibility. Our approach to
social management is anchored in a robust legal framework, detailed in our Core Compliance Documents, ensuring
the utmost governance, ensuring that every Eurofins Employee thrives in a workplace built on ethical leadership,
accountability, and respect for all.
Eurofins Core Compliance Documents
• Vision, Mission & Values: Define our commitment to safety, quality, and global responsibility.
• Leadership Charter: Sets expectations for Leaders to empower teams, encourage innovation, and uphold
ethical standards
These documents are the foundation of the Eurofins Network, for more details, please refer to section 4.5.1 -
Corporate Culture.
Eurofins Group Code of Ethics: operationalising our values and charter
The Code of Ethics provides clear guidance for all Eurofins Leaders and Employees to act with integrity,
professionalism, and respect in their daily roles. Simultaneously, it assures suppliers, customers, and shareholders
of our transparent, values-driven approach to governance. Our key commitments are:
• Adherence to International Standards: Aligns with the International Labour Organization (ILO) principles,
prohibiting child labour, forced labour, discrimination, and upholding collective bargaining rights.
• Equality & fairness: Explicitly bans bias based on age, gender, race, ethnicity, disability, sexual orientation,
or other protected characteristics. Advancement and opportunities in the Eurofins Network are merit-
based, ensuring fair treatment for all.
• Safe, inclusive workplaces: Enforces a zero-tolerance policy for harassment, bullying, or abuse, supported
by confidential reporting channels and prompt investigation protocols.
• Diversity & inclusion: Actively promotes the employment and inclusion of persons with disabilities and
underrepresented groups.
While the Code of Ethics ensures ethical conduct, matters such as secure employment, working time, and work-
life balance are managed locally in compliance with national laws and cultural contexts.
Eurofins’ social policies driving accountability
To operationalise the Code of Ethics, seven social policies provide detailed, enforceable standards in the Eurofins
Network:
1. Equal Opportunities & Fair Employment Policy: Mandates merit-based recruitment, promotion, and
career development to ensure a diverse and inclusive network.
2. Modern Slavery Statement: Describes our commitment to eradicating forced labor, trafficking, and child
labour in line with international standards.
3. Health & Safety Policy: Sets out measures to protect Employee well-being, including training, incident
reporting, and risk management procedures. For more details, please refer to section 4.4.5 - People,
Health & Safety.
4. Ethical Behaviour at Laboratories: States the ethical standards for laboratory operations, emphasising
data integrity and professional conduct.
5. Whistleblowing Guidelines: Provides secure channels for reporting concerns, ensuring confidentiality and
protection against retaliation.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
104
6. Eurofins Group Privacy Policy: Mandates the protection of personal data through lawful processing,
confidentiality, and robust data security practices.
7. Eurofins Group Anti-Bribery Policy: Describes a zero-tolerance stance toward bribery and corruption,
outlining expectations for handling gifts, hospitality, and related practices.
Resources, Governance Mechanisms & Whistleblowing
To ensure the effective implementation of our policies and maintain the highest standards of governance, Eurofins
provides dedicated resources and mechanisms that support ethical decision-making at all levels.
Eurofins Learning Centre:
• A state-of-art platform available to Leaders where they can develop and share specific content, for
instance in the US, the compliance course on "Preventing Discrimination & Harassment" was designed to
address specific cultural needs.
• This platform also hosts Eurofins’ multilingual compliance-related training: that are mandatory for all new
joiners and repeated annually. Those trainings are designed to ensure a comprehensive understanding
of our Core Compliance Documents.
For more details on the Eurofins Learning Centre, please refer to section 4.4.4 - Training and Skills Development.
Policy Implementation
• Annual compliance resolutions: Leaders formally endorse and implement Core Compliance Documents
yearly, adapting them to local laws and cultural needs.
• Local Compliance Officers: Appointed by Leaders to oversee policy execution and regional alignment.
Whistleblowing
A reporting channel is accessible via our intranet and website, monitored by a third party to guarantee
confidentiality, this service allows Employees, Leaders, and external stakeholders to confidentially report any
concerns regarding malpractice, breaches of the Code of Ethics, or the Anti-Bribery Policy. For further details on
its governance and results, please refer to section 4.5.5 - Honesty, Integrity, and Human Rights.
The Equality Driving Excellence (EDE)
The Eurofins EDE is a global team across the Eurofins Network that ensures the sharing of best practices and
provides expertise in promoting equality and inclusion to both Leaders and Employees. For more details on the
EDE actions, please refer to section 4.4.1 - Equality Driving Excellence.
Targets & Results
Our Managing Directors and Leaders play a key role in upholding our social standards through adapted Core
Compliance Documents and are responsible for:
1. Documenting and endorsing Core Compliance Documents annually.
2. Appointing Local Compliance Officers.
3. Delivering mandatory training across their teams.
Leaders’ ESG bonuses are tied to these compliance targets, ensuring that ethical governance remains integral to
Eurofins’ entrepreneurial mindset.
In 2024, the Eurofins Network achieved:
• 91% of our workforce completed the Code of Ethics training.
• Over 111,000 hours of compliance-related training recorded in the Eurofins Learning Centre.
• 97% of our FTEs are working in Eurofins entities with an appointed Local Compliance Officer.
• Zero severe human rights violations reported.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
105
• Two confirmed cases of unfair treatment (e.g., discrimination, harassment), reinforcing the importance of
continuous improvement in fostering a fair and inclusive workplace.
4.4.1 Equality Driving Excellence
GRI Standard/Disclosure: 405-1, 401-1
Eurofins’ mission is to contribute to a safer and healthier world through innovation, high-quality work, and creating
opportunities for employees in a sustainable way. A key element of this mission is fostering a workplace culture
rooted in respect, fairness, and equal opportunity. The strength of our business lies in the talent, dedication and
diversity of our employees, making inclusion and equity not only a moral responsibility but also a strategic
advantage across our network.
For Diversity, Equality, and Inclusion (DEI) efforts to be sustainable, it is critical that Leaders of Eurofins Companies
actively support and drive change in their scope. In 2019, Dr. Gilles Martin, CEO, announced the launch of what is
known as Eurofins Equality Driving Excellence (EDE). His vision, along with the Board of Directors and the Group
Operating Council, is to see that all Eurofins Companies and all their employees are advancing excellence through
diversity, equity, and inclusion in their business practices and workplace culture.
As part of this commitment, Eurofins Companies have to adhere to the Core Compliance Documents, which
establish the foundation for ethical and inclusive workplace practices. The EDE priorities are aligned with these
documents and further reinforced by our obligations as a UN Women Empowerment Principles Signatory. This
ensures that we continually work towards making Eurofins a safe, fair, and welcoming employer for all employees
and prospective candidates.
Our commitment to fostering a positive workplace culture has been recognised externally, demonstrating the
tangible impact of our efforts. Eurofins has been acknowledged by Forbes, the Financial Times, and Statista as a
leader in workplace excellence, earning a place on Forbes' “World’s Top Companies for Women” list for the fourth
consecutive year and being featured in the Financial Times’ “Leaders in Diversity” ranking. In 2024, Disability:IN,
noted Eurofins a 90/100 score on the Disability Equality Index (DEI), earning recognition as a "2024 Best Place to
Work for Disability Inclusion." These accolades are based on comprehensive anonymous surveys conducted with
employees, stakeholders, and industry experts, evaluating public perception, employee feedback, and available
company information.
Unity in Community
The Eurofins Equality Driving Excellence initiative, or the EDE works
to advance our excellence through equality throughout all
companies in the Eurofins Network, and brings together Eurofins
employees to work towards this goal. Global efforts provide a
framework for local initiatives. In 2024, EDE built on it with the 2023’s
initiative Unity in Community advancing with Unity in Action.
Throughout 2024, Eurofins EDE focussed on 5 key areas: Recruiting
and Onboarding Excellence, Employee Engagement, Innovative
EDE Initiatives, EDE Talent Internal Mobility and Leadership
Development, and Community Outreach.
Eurofins Leaders and employees embraced the Unity in Action
theme by organising events and efforts ranging from Equality
Conversations and Leadership Trainings event to employee
volunteering, community outreach, celebrating diverse holidays, and
introducing inclusive ways to honour and respect our colleagues
from diverse backgrounds.
Equality Conversations are virtual sessions that are intended to help develop shared language, foster employee
engagement, and advance discussions on a variety of diversity-related concept. This year the following topics were
covered in these events:
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• Overcoming Imposter Syndrome
• Beyond Imposter Syndrome
• Values in Action: Transforming Workplace Dynamics (Employee Engagement)
• Mental Health Matters: Strategies for Balance and Resilience in the Workplace (Innovative EDE Initiatives)
The EDE Leadership Trainings are specifically designed to target current and prospective leaders within the
Eurofins Network to implement practical ways to advance equality in their scopes. This year the following topics
were covered in these events:
• Advancing Equal Pay in the Workplace
• Building Trust in Diverse Teams
• Exploring Insights on Gender Disparities and AI Bias (Recruiting and Onboarding Excellence)
Continued Focus on Measurements
Eurofins’ talent teams undertake recruitment outreach to all diverse demographics to increase the outreach to
qualified talent pools and ensure that the most qualified candidates are chosen for positions within Eurofins
companies.
Please see chart below for percentage of women at all levels of leadership.
Note: Eurofins is comprised of approximately 57% women in total. Approximately 47% women are represented in
all levels of leadership combined (e.g., GOC members, Regional Business Line Leaders, National Business Line
Leaders, Business Unit Leaders, and all other leaders).
Table 5: Percentage of Women at all levels of Eurofins leadership
Percentage of Women
31
Dec
2020
31
Dec
2021
31
Dec
2022
31
Dec
2023
31
Dec
2024
Board of Directors
[1]
43%
50%
50%
50%
50%
GOC – (incl CEO) and Regional Business Line
Leaders
[2]
18%
21%
18%
21%
14%
National Business Line Leaders and Business
Unit Leaders
[2]
30%
30%
30%
34%
36%
Other Leaders
[2],[3]
N/A
49%
50%
50%
50%
All Eurofins Companies’ Employees (Incl. all
leaders)
[2],[4]
56%
56%
55%
57%
57%
Footnotes
[1] Based on the information received from the Company Secretary.
[2] Based on Gender sourced from identity lifecycle management database.
[3] Other leaders: Eurofins Employees who have at least one Employee as a direct report (excluding Interns) and who do not belong to any other category of
Leaders (Board of Directors, GOC, Regional Business Line Leaders, National business Line Leaders or Business Unit Leaders).
[4] Includes apprentices, interns, temporary workers, and self-employed managers. Excludes external consultants.
Cultivating Inclusive Leadership Through Mentorship
In an effort to provide mentorship opportunities to high potential future and current Leaders, in 2021, the EDE
developed and launched a global Leadership Mentor Programme open to all Eurofins employee, where they can
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receive mentoring from a senior leader within the Eurofins Network. When looking at a binary gender breakdown,
historically women were progressing into senior leadership roles in the Eurofins Network at a slower pace than
men. The Leadership Mentor Programme looked to confront this.
Since the programme launched, over 700 current and prospective leaders have participated as mentors or
mentees. From 2023 to 2024, there has been an organic increase in the participation of underrepresented groups
within the network was observed, with a 64% increase in programme mentors from diverse ethnic and racial
backgrounds and a 20% increase in female mentors. Since its inception in 2021, across the board, the programme
has gone from strength with programme satisfaction scores from for mentors increasing from 4.1/5 to 4.5/5 and
mentees satisfaction increasing from 4.2/5 to 4.5/5.
This programme is intended to provide prospective and current Leaders with mentoring to support them to succeed.
As a decentralised organisation, this provides unique opportunities for Eurofins Companies employees to
collaborate with colleagues across the world and learn from each other's experiences.
Global Equality Driving Excellence (EDE) Ambassador Council
An Equality Ambassador is nominated to represent each of the Business Lines within the Eurofins Network. Equality
Ambassador collaborate closely with Senior Leaders, HR Partners to actively promote and advance equality within
their scopes, and are part of the Global Equality Driving Excellence (EDE) Council. In 2024, this network of Global
EDE Councils comprises over 100 dedicated members across the Eurofins Network.
The primary function of Equality Ambassadors is to support the Equality Driving Excellence (EDE) overarching
objectives set forth by our Senior Leaders. They are also tasked with fostering grassroots initiatives in their local
areas. This approach aims to ensure a comprehensive, two-fold strategy comprising of top-down and bottom-up
initiatives.
Equality Driving Excellence Survey
Since 2020, the EDE team has conducted annual internal surveys across the Eurofins Network, to assess and
understand Eurofins employees’ perceptions of equality within the Eurofins Network. The survey is anonymous,
available in 13 languages, and distributed by local Equality Ambassadors, Leaders, and HR Partners. The findings
provide critical insights into areas requiring attention, including gender equality, disabilities, ethnic minorities,
LGBTQ+ inclusion, and equal pay. To address the feedback received, the EDE collaborates with local EDE
Councils and Leaders to drive initiatives to address challenges identified in survey responses.
Survey Evolution and Impact
In 2023 the EDE began to utilise a best-in-class employee survey provider, ensuring confidential and anonymised
data collection while allowing Leaders to receive reports for their individual scopes, supporting them to initiate
targeted actions and set pertinent goals aligned with the European Sustainability Reporting Standards to drive
change. Local Leaders track progress in their scopes and report it to the EDE. These insights will continue driving
meaningful change across the Eurofins Network, reinforcing a culture of equality and inclusion.
Key Insights and Actions in 2024
• Work-Life Balance: the survey showed that most employees feel supported to very supported in their work-life
balance needs. Feedback emphasised that employee needs vary across different categories, highlighting the
importance of tailoring HR policies to accommodate the diverse needs of our workforce, beyond demographic
factors.
• Gender Pay Equity: Insights from the survey highlighted a strong interest in gender pay equity. In response,
the EDE hosted a global training session, “Advancing Equal Pay in the Workplace”, where HR professionals
from Canada, Sweden, and Brazil shared best practices. This session provided Leaders with actionable tools
to support equal pay analyses locally and promote fair compensation practices.
• Demographic Equality (Gender, Ethnicity, LGBTQ+, Disability): observed a positive trend across these
dimensions in our EDE-specific KPIs, reflecting the positive impact of the EDE initiatives and efforts. This
marks a significant improvement, demonstrating the effectiveness of our ongoing work in fostering
demographic equality.
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Asia
“Unity in Action”
Eurofins Advinus companies, India
At the start of the EDE global programme rollout in 2019, Equality Ambassador,
Dr. Priti Vaidyanathan, Deputy General Manager, Eurofins Advinus, initiated EDE
efforts at the local level with the support of Leaders and HR Business Partners.
Eurofins Advinus’ efforts began by hosting sessions with legal teams addressing
workers’ rights within their country, health-related discussions, and social events.
Over time, Employees participation in equality related initiatives greatly
increased. Leaders encouraged employee involvement throughout the
programme’s development. Since its inception, Eurofins Advinus, India has
enrolled over 20 EDE Champions and five HR Business partners who help
advance EDE initiatives in Eurofins Advinus, such as the establishment. or a
childcare, supporting parents and nursing mothers who can utilise the facility and
an annual event celebrating International Women’s Day.
North America
“Celebrating Diversity by Sharing Cultural Traditions and Holidays”
Eurofins DiscoverX– San Diego, California (USA)
At the Eurofins DiscoverX, LLC LeadHunter Services site in San Diego, the team brings
awareness to various cultures and traditions by organising celebrations throughout the
year. These events provide an opportunity to share educational materials, delicious
foods and are a time to learn about their colleagues’ heritage. In 2024, the team
celebrated Lunar New Year, Cinco de Mayo, Juneteenth, LGBTQ+ Pride, and Diwali to
name a few important cultural events.
LATAM and South America
“Driving Change for All”
Eurofins Companies -- Brazil
Eurofins companies in Brazil have hired a specialised Diversity and Inclusion consultancy to structure the hiring
and integration of colleagues with disabilities. The programme started with an assessment to identify suitable roles
and possible workplace accommodations for future Employees with disabilities, ensuring alignment with the best
health and safety priorities for these professionals. Subsequently, Leaders participated in a dedicated training
programme to enhance their awareness of the topic of disability and to address any unconscious bias that might
impact the most qualified candidates for roles within Eurofins companies in LATAM and South America. Employees
within this Eurofins companies in LATAM and South America also engaged in a sensitivity training, focussed on
eliminating ableist language and fostering a welcoming work environment. The programme culminated in the
onboarding of new talent. As a result, the number of employees with disabilities employed in Eurofins companies
in Brazil, increased from 1 to 6 which reflects the transformative impact of this initiative over a short period of time.
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Europe
“Taking time to focus on Health and Wellness”
Eurofins Food and Feed Testing– Hamburg, Germany
At the Eurofins Food and Feed Testing site in Hamburg, German, the month of June 2024 was all about health.
Many different training and awareness modules were held for employees throughout the month, covering topics
such as women's health, men's health, legal precautions and living wills, and mental health. Most of the events
were held virtually from Hamburg so that colleagues from all Eurofins Food & Feed Testing locations across
Germany could take part. A total of 284 colleagues participated in 10 events.
Additionally, the site’s annual health day took place during Health Month in June. In cooperation with the health
insurance company, Employees were offered different mobility and stress screenings for employees as well as an
all-time favorite “smoothie bike”, where employees could ride a bike, power a blender and mix their own smoothie
at the same time.
“Creating Safe Places”
Food and Feed Testing, Germany
Food and Feed Testing Germany has focussed their efforts on intentionally making the workplace safe for people
of all diverse identities and backgrounds. From By addressing identity, neurodiversity and psychological safety
topics, they are taking proactive steps to help ensure their company’s culture is
welcoming and inclusive of all employees. In 2024, they launched
comprehensive information pages about Gender Transition on their internal
SharePoint. These resources offer valuable insights and support for both
employees and Leaders, ensuring everyone feels empowered and informed.
This initiative laid the groundwork for the launch of an LGBTQ+ network,
Queer@Eurofins, at the end of the year, creating a welcoming space that
encourages open conversations and community engagement.
In addition, Eurofins Food and Feed Testing, Germany, created ‘Training
Nuggets’ (short trainings for employees). The first session on psychological
safety discussed building trust within teams and creating environments where
employees feel safe to express themselves. Following this, a session on
neurodiversity was held to deepen understanding of neurodiverse perspectives
and to cultivate a culture that embraces diverse cognitive experiences.
Additionally, in 2025, Eurofins Food and Feed Testing Germany will launch in
2025 a Neurodiversity@Eurofins network which will foster connection among neurodiverse employees and allies,
promoting a supportive environment where unique strengths are celebrated.
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4.4.2 Employment Creation
GRI Standard/Disclosure: 401-1
Global Headcount figures
The total number of employees within the Eurofins Network has continued to grow during 2024, driven by both
extensive recruiting activities and new acquisitions. Total headcount at the end of 2024 was 62,696, an increase
of more than 20% since 2020.
Table 6: Total Headcount split by geographical region
Region
2020
2021
2022
2023
2024
Europe
31,111
34,258
34,972
35,401
35,682
North America
12,538
13,460
14,503
14,469
14,687
Rest of World
7,867
10,274
11,904
11,928
12,327
Grand Total
51,516
57,992
61,379
61,798
62,696
Hiring for the future
At Eurofins, we believe that our employees and leaders are the true engine behind our success, allowing us to be
a global leader in analytical testing services.
Attracting great, diverse talent is a key strategic objective for us. Particular focus is given to creating opportunities
for students, who will become our next generation of leaders. The various Eurofins Talent Acquisition Teams are
playing a critical role in hiring candidates who share our values, model our Leadership Charter and enrich our
diverse teams with unique skills.
Joining Eurofins means choosing a highly decentralised network of independent companies that protects and
nurtures individual entrepreneurship and puts increasing efforts into ensuring all employees and leaders are well
equipped to perform in their role and to pursue their career aspirations within our network. As a result, we have
expanded the number of local and global initiatives and tools supporting their professional growth.
We look to offer our employees and leaders lifelong learning opportunities within a healthy working environment.
We strive to provide a positive candidate and employee experience during the entire employment lifecycle.
Inclusive recruitment processes
Since 2022, various Eurofins Talent Acquisition teams, together with the Equality Driving Excellence (EDE) team,
worked on actions to ensure that our recruiting process promotes inclusivity and diversity in hiring the best. It is
part of Eurofins companies’ ambition to be equally attractive to all type of candidates, independent of gender
identity, race, or age and therefore avoid discrimination of any kind.
Workshops and trainings have been organised and tools have been created to ensure diversity is front and centre
in all of our recruitment processes. Since 2022, a facultative “Gender Identity” form was included in our recruitment
process in countries where legally compliant to do so, allowing candidates to self-declare their gender identity
(male, female, non-binary, other or prefer not to disclose). This will facilitate measuring our performance with
regards to increasing diversity in our hires. Together with our recruiters, we have revisited our selection criteria to
ensure that, while respecting the spirit of our Leadership Charter; criteria appeal and adapt to a diverse set of
candidates and leadership styles.
Trainings have been developed to support recruiters to mitigate general bias with a dedicated focus on gender
equity during the recruitment process (such as biased language and candidate assessment trainings). Additionally,
we have been training our recruitment team to also address this topic with our hiring managers, promoting
awareness and sharing their knowledge to help our main stakeholders to be mindful about this bias so they work
to mitigate it, and we ensure the topic is tackled not only in the attraction and HR assessment phase but throughout
the full recruitment process.
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To take it one step further, since 2023 we have undertaken a deep dive analysis into our job ads beyond the
wording, to also ensure their format is gender compliant (such as minimising bullet points and avoiding listing
excessive requirements). Since then, we have been monitoring our ads closely to ensure these best practices are
utilised by our recruitment teams. This commitment reflects our dedication to creating job advertisements that are
equally appealing to all genders.
Below are some examples of our recruiting initiatives targeting new graduates specifically.
Developer Academy Programme – Eurofins GSC IT Solutions Nantes, France
The annual Developer Academy in France focusses on recruiting and developing promising IT graduates,
enhancing their developer skills, and transitioning successful participants into senior developer roles within our
network.
The programme offers comprehensive training and mentorship, providing an ideal environment for participants to
grow their IT expertise while learning from experienced colleagues. On average we have retained 4 out of 6
participants, transitioning successful participants into an experienced developer role within our network.
In 2024, we celebrated the 3rd edition of the programme, recruiting 6 new participants who will be joining us March
2025.
Top Graduate and Leadership Programme Netherlands
(Food & Feed Testing, Agro Testing, Environment Testing, BioPharma Product Testing,
Forensic Services, IVD Clinical Solutions Netherlands, Group and National Service Centres)
Eurofins companies of several Business Lines in the
Netherlands successfully implemented a local two-year Top
Graduate Programme beginning in 2021. The Business Lines
hire fresh graduates from leading Dutch universities to
develop leaders for the future. These candidates have the
opportunity to work on strategic projects for Eurofins
Companies in Netherlands. Currently they are employed in 7
different Business Lines as well as in our Netherlands NSC.
In 2023 the scope of the programme was extended to include
the Eurofins Campus in Nazareth (BE). The team behind the
training and development programme continuously strives to
optimise it to give the candidates the best experience and
propel their careers within the Eurofins Network. In 2024, 10
Top Graduates completed the programme and now continue their journey within Eurofins as Team Leaders,
Operations Managers, Project Managers, Account Managers and Business Controllers. Also in 2024, one of the
Top Graduates who joined Eurofins through this programme in 2021 was promoted to Business Unit Manager,
displaying the benefits of the programme.
Fast Forward European Graduate Programme
Sponsored by our Environment Testing and Food & Feed Testing Business Lines in Europe, the Eurofins Fast-
Forward European Graduate Programme continues to thrive. The first cohort of participants successfully completed
the programme, with some participants already stepping into leadership roles and leading new projects across the
Eurofins Network. The second cohort is currently in their final rotation, having worked on a range of impactful
projects such as laboratory integration support, automation and process improvements, method optimisation, and
data engineering among other. Recruitment is already underway for the third cohort, who will begin their European
Graduate Programme in September 2025.
4.4.3 Human Capital Development
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GRI Standard/Disclosure: 404-2, 404-3, 205-2
Supporting the Development of our employees
Creating opportunities for our employees is part of Eurofins’ mission. “Hire the best: attract, develop and retain star
performers” is one of the 12 key behaviours and competencies expected from Eurofins leaders. Eurofins leaders
put a lot of effort into empowering our employees to create an environment in which everyone can perform, grow,
contribute, and enjoy work. We believe in the importance of identifying talented and high performing employees, in
developing their skills and in assigning them to roles in which they can contribute to the best of their abilities. We
also develop a consistent pipeline of talent for the most critical roles in our network. We have the ambition to
constantly improve how we assess and develop our internal talent. For example, in 2024 61% of the key employees
and Leaders hired within the Environment Testing scope globally were filled by internal candidates.
In a decentralised organisation like Eurofins, a network of independent companies led by entrepreneurs, people
development matters are handled primarily at local level by the Business Unit or Eurofins Legal Entity leaders
themselves. We can count on multiple local and/or business line specific initiatives aimed at developing our
employees and strengthening our leadership pipeline. To unify best practices and foster co-creation, while
respecting our profound entrepreneurial nature, we strive to share local initiatives with other colleagues around the
world so that we build and leverage each other’s experience. With this purpose, the Eurofins Academy was founded
in 2018 and has acted since then as a unified learning platform for trainings that are either mandatory or valuable
for the majority of Eurofins employees.
Recognising that local leaders may have limited visibility on pipelines for critical roles across our entire network of
companies, Eurofins implemented a centrally led approach to ensure consistency in how we recognise, assess
and develop our leaders. As such, the career development and placement of our most senior leaders is monitored
centrally, with the intent of creating a solid pipeline for our most critical positions, ensuring the right skills and
competences are developed to guarantee business continuity and growth. In 2021, we implemented a new tool
supporting performance assessment and talent identification for our key employees and all our leaders. By 2023,
this tool was enhanced and the processes of talent assessment and succession planning were defined and tested
across our network. In 2024, we further leveraged this tool to systematically identify and evaluate internal
candidates for leadership openings. Additionally, we are engaging in a talent mapping process across pilot scopes
to build a pipeline of leaders who could take on broader or new scopes within the organisation.
4.4.4 Training and Skills Development
In 2018, Eurofins founded a central
team, the Eurofins Academy with the
aim of creating and delivering high
quality trainings on Eurofins’
knowledge, technologies, methods, and
processes to all employees of Eurofins
Companies. The team’s vision is to
continuously improve the competencies
and skills of all employees of the
Eurofins Network.
Achievements in the central scope
To fulfil its mission, in 2022, the Eurofins Academy deployed a new learning management system (LMS) – the
Eurofins Learning Centre (ELC) – to enhance the training experience for Eurofins employees as well as training
reporting capabilities. The platform is available to all Eurofins employees and is offered in 21 languages. The ELC
Trainings are organised, documented, and tracked on the Eurofins Learning Centre; they can be delivered in e-
Learning and Instructor Led (in class and remote) formats. Since 2023 the Eurofins Learning Centre can be
accessed via mobile devices.
The Eurofins Academy is responsible for the development and maintenance of all Eurofins Trainings, which are
targeted either to all employees of Companies belonging to the Eurofins Network or to specific target groups. The
creation process for these trainings ensures the highest quality, content validity and language accessibility (
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trainings for all Eurofins employees are carefully translated into 21 languages). Trainings are always aligned with
equality and inclusion principles and equipped with the audio voice over, subtitles and notes.
Trainings developed by the Eurofins Academy are available in the central catalogue on the ELC and are the subject
to continuous updates. In 2024 more than 100 trainings were available in this catalogue, with 28 published in 2024
alone. All trainings are open for enrolments, while some are assigned as mandatory to employees depending on
their role and length of service in the company. In 2024 13 trainings were categorised as mandatory for every new
joiner and 15 for every new Leader starting at Eurofins.
Additionally, the Eurofins Academy initiated the reoccurring assignment of crucial compliance trainings (8 in total,
varying on the target audience) – to be annually assigned to employees. In 2024 more than 266.000 assignments
of those courses were made. Those trainings (such as The Eurofins Group Code of Ethics, The Eurofins
Compliance and Whistleblowing Programme, The Eurofins Group Anti-Bribery Policy) are compliance related, all
end with quizzes which must be passed to complete the course. To reach the target 95% completion rate for those
courses within all Eurofins Companies, accurate, automatic, and regular reporting to Leaders and extra notifications
measuring the completion of those trainings were introduced.
Additional automatic, multilingual notifications from the Eurofins Learning Centre inform learners about important
initiatives and activities on the platform.
Enhancing training efforts in local scopes
In the spirit of Eurofins’ decentralised structure with locally empowered Leaders, the Eurofins Academy goes
beyond providing the policy on supporting the local development of trainings. Another key priority is to ensure
accessibility to both central and local trainings via the Eurofins Learning Centre. This is achieved by creating Local
ELC Course Catalogues for qualified and certified Local Administrators, in addition to the central ELC Course
Catalogue, where trainings directly developed by the Eurofins Academy are made available.
In just one year, we are proud to have now seen the creation of 25 catalogues with 1.882 trainings in total; covering
33% of all National Business Lines at Eurofins, with the goal to include even more in 2025 and ultimately achieve
full coverage of all National Business Lines that are sizeable enough to drive training initiatives locally. These are
typically professional courses, in local languages, adhering to local regulations and addressing specific needs all
the while meeting the overall goal of the Eurofins Academy of raising the knowledge of Eurofins’ values,
technologies, methods, and processes. Such locally developed trainings include for example: Introduction to
Pharmaceutical Glassware and Labware Cleaning; Ergonomics, Back Safety, and Manual Material Handling;
Preventing High Frequency Incidents and Ergonomics.
Local training and development initiatives
In addition to the Eurofins Academy, our employees enjoy dedicated training and development initiatives that are
developed within their own Business Lines and sites. The provision of training programmes at Eurofins companies
has been constantly growing over the past number of years. From predominantly face-to-face training delivery,
Eurofins has adapted to a mix of e-learning, virtual live programmes using the functionalities of the Microsoft Teams
platform, and some face-to-face training. Local programmes are designed to help our employees who have just
taken up a new role or are a new hire to build up critical skills and get acquainted with the local way of working.
While these local programmes predominantly target supporting our young talents in their first management roles,
our commitment to employee growth extends to internal mobility initiatives where the Group Service Centre
participated and remains committed to promote internal mobility opportunities for all Eurofins employees.
Below are some examples of local training, development and internal mobility success:
European Talent Programme for High Potentials
The European Talent Programme for High Potentials is a comprehensive initiative focussed on fostering future
leaders within Eurofins. It prepares and trains a talented pool of potential leaders, so that they are ready to take on
responsibilities at Business Unit levels across the Eurofins Network in Europe. The programme places a strong
emphasis on developing a profound understanding of Eurofins' business operations and growth strategy, ultimately
enhancing the proficiency of our future leaders. Additionally, it provides a platform for networking and team building,
by creating connections among emerging and established Eurofins leaders.
The programme originated in 2011 as "ScanNed", as a local initiative driven by National Business Line Leaders
and HR Managers in Denmark, Sweden, Norway, and the Netherlands. Since then, it has evolved and expanded
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to meet the ever-changing needs of our organisation. In 2024, the programme celebrated a significant milestone
with the inclusion of more than 32 employees from 8 different EU countries showcasing its commitment to serving
a diverse participant base. Notably, for the second consecutive year, over 60% of the participants were women,
reflecting our ongoing dedication to promoting women talent and ensuring their access to leadership positions
opportunities.
The programme spans an 18-month period with training sessions and content aligned with the Eurofins Leadership
Charter, covering areas such as Leading Self and Others, It’s All About Customers, Operational Excellence,
Understanding the Eurofins Business, Change Management, and Acquisitions. These focal areas ensure a
comprehensive and tailored learning experience, further empowering future Eurofins leaders.
The programme concludes with a diploma ceremony, which not only recognises the achievements of the
participants who successfully complete the curriculum but also marks them as leaders in the making.
Talent Development Programme Food & Feed, Agro and Sensory Europe
Recognising that talent development is a cornerstone of any organisation, Eurofins Food & Feed, Agro and Sensory
Testing Business Lines in Europe continued their Talent Development Programme in 2024. With an aspiration to
better get to know their internal talents and their strengths, the vision of this programme is to nurture a talent
pipeline for the whole Eurofins Food & Feed, Agro and Sensory scope in Europe by getting a better understanding
of employees’ professional and managerial skills, all while striving to inspire and motivate them. This will in turn
help to identify development opportunities and training needs.
The main objective of the programme is to support Eurofins Leaders within this scope to be even more skilled and
have access to new and exciting opportunities as a result. The aim is to be able to develop, support and “see” all
talent to then create a pipeline of highly motivated, inspired and skilled leaders to guide Eurofins Food & Feed,
Agro and Sensory into the future. After a successful first cycle of training where a highly ranked European Business
School partnered with Eurofins Food & Feed Testing, Agro Testing and Sensory and Market Research Europe to
co-create and deliver outstanding training together with Eurofins Senior Managers as keynote speakers, the
programme was further developed resulting in visibility of leadership potential as well as areas within commercial
and operational excellence.
Job Shadowing Programme at Eurofins Viracor BioPharma Services (US)
Driven by a continuous effort to be more efficient and effective in their laboratory operations, Eurofins Viracor
BioPharma Services offers a ‘Job Shadowing’ programme so associates can better understand all the roles and
responsibilities within the company’s workflows. The programme aims to foster understanding of roles and
responsibilities typically outside of an employee’s daily work scope to encourage better collaboration across
departments, ultimately resulting in better results for clients.
Beyond providing a better understanding of the workflows, the programme also serves as a platform for associates
to engage in leadership and career development opportunities; associates can gain valuable insights into their
potential career paths within the company. This not only facilitates personal growth but also enhances internal
mobility, allowing individuals to explore and understand different facets of the organisation.
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Since the programme’s introduction in 2021 more than 60 associates have taken part in Job Shadowing events,
with 33 events taking place in 2024, resulting in career development opportunities for employees, including some
interesting examples below:
• The IT Technical Project team offered a new series of six job shadowing opportunities to better
understand the roles and responsibilities of a Technical Project Analyst (TPA). The sessions are now
available quarterly to any interested Viracor associate and are hosted by an analyst considered to be a
subject matter expert or mentor in the respective processes. Each session covers one of six basic
functions of the TPA role, including: a daily touchpoint for sprint deployments, help desk support and
assay management, agile methodologies, discussion on the transition from CSV to CSA, a project
workflow overview session, and excel spreadsheet workflow review. In 2024, four BP associates joined
the sessions from other departments and four TPAs from Eurofins Central Lab joined to shadow the
Viracor BioPharma TPA team. This initiative has and continues to improve collaboration both within
Viracor BioPharma and across Business Units, ultimately allowing us to best serve our clients.
• Mechelle, a Clinical Lab Specialist shadowed the Technical Writing team and has been critical in
supporting the team to meet client deadlines for summary reports. The scientist was also well prepared
to assist the Technical Writing team when they had a period of decreased staffing.
• Treva, a remote Contract Specialist, shadowed Flow Cytometry testing. This improved her ability to write
testing contracts, including turn-around time, for Flow Cytometry testing opportunities. In addition, it
familiarised the contract specialist with workings of the laboratory that she had not previously
encountered.
Leadership Development Programme Eurofins Brazil
Eurofins Brazil facilitated more than 1,270 hours of employee training between January and December 2024, for
participants, 70% of whom were women, highlighting the commitment to equality in succession planning across all
Eurofins Business Lines in Brazil (Food, Environment, Agroscience). The programme included courses on diversity
and inclusion, addressing generational conflicts, inclusion of people with disabilities, gender equality, and
awareness of racial and ethnic issues. Additional topics covered included effective communication, constructive
feedback, and leadership development. This focus on employee growth continues, with plans to implement a
leadership development skills programme in 2025.
Eurofins Environment Testing in the USA Leadership Development framework
Key to the success of any organisation is the development of qualified candidates for a sustainable leadership
pipeline. Eurofins Environment Testing companies in the USA strive to promote from within - both for leaders and
technical roles. To achieve this goal, a framework has been created to build a bench of qualified candidates and
to provide clear career development paths for internal talent. Driven by a structured talent inventory and succession
planning process, the framework consists of a suite of programmes, each targeting the specific needs of talents
based on their leadership role and developmental needs.
The Senior Leadership Development Programme is for key leaders and is designed to enhance operational
knowledge and leadership skills. The central course curriculum focuses on how to drive functional areas of the
business, including finance, sales and marketing, human resources and legal considerations. Additionally, the Core
Leadership Development programme focuses on essential leadership competencies and courses are routinely
offered for leaders at every level.
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The High Potential Programme cultivates those leaders who have the potential to step into a Business Unit
Manager role or functional leadership role within two years. The courses focus on finance and lean management
as well as tailored trainings fitting the needs of the business.
The Foundations of Leadership Programme broadens learning and development opportunities by focusing on
managers between a team leader and Business Unit Manager role who are interested in being developed for a
more senior leadership role. High potentials complete this programme as part of their development plan.
Building Leadership Excellence has been running since 2023 for Business Unit Managers, High Potentials and
graduates of the Foundations of Leadership course. This programme focuses on honing the leadership skills
needed to develop highly functioning, effective teams.
The newest onsite offering, Learning to Lead, is being launched in Q2 2025 and focuses on developing the next
tier of leaders: supervisors, group leaders, team leaders and those who are targeted for promotion to a leadership
role. This programme helps leaders transition from an individual contributor role to a supervisory role.
The Coaching and Mentor programme is available to help High Potentials, new Business Unit Leaders and other
leaders on a growth track to sharpen specific skills to prepare them for future roles.
4.4.5 People, Health & Safety
GRI Standard/Disclosure: 403-1, 403-2, 403-3, 403-4, 403-5, 403-6, 403-7, 403-8, 403-9, 403-10
In accordance with the European Sustainability Reporting Standards, this section, providing a comprehensive
overview of Eurofins Group’s commitment to their employees and contractor’s health and safety, reflects our
strategic initiatives, performance metrics, and future goals related to employee health and safety, emphasising our
commitment to fostering a safe work environment and adhering to relevant regulatory frameworks.
Considering the customer mapping of Eurofins activities, the personal safety of consumers and / or end-users is
outside the scope of Eurofins’ policy on Health and Safety, which focuses on our employees and contractors.
Eurofins’ activities are more B2B oriented and therefore, the identified indirect impact on the safety of consumers
and end-user relates to Eurofins‘ ability to deliver accurate results, in compliance with all the highest testing
standards and regulation. As Eurofins doesn’t engage directly with consumers and end-users, the safety impact of
the analytical results obtained by our laboratories is indirect, going through third parties and complex supply chain
of production and delivering products or services to the end-users. As a consequence, the unlawful use or misuse
of the undertaking's Eurofins products and services by Eurofins’ customers toward consumers and end-users falls
outside the scope of Eurofins’ responsibilities.
The safety of our employees always comes first, and we conduct all business in compliance with responsible social
and safety policies. The Eurofins Group Health and Safety Policy sets out Eurofins’ approach in relation to the
assessment and control of health and safety risks arising from business activities and serves as a guiding principle.
Sites also have local Health and Safety contacts and policies that comply with regional and local safety laws and
regulations. In addition, The Eurofins Group Supplier Code of Ethics outlines Health and Safety expectations
as they relate to our suppliers.
A successful Environmental Health and Safety (EHS) strategy relies on a strong governance structure and on
capturing the right metrics. In our decentralised organisation, each Managing Director is responsible and
accountable for the Health and Safety performance of their scope. Those Managing Directors oversee the local
Health and Safety strategies, in accordance with the local regulation and the Group Policy. In 2024, a process was
developed and implemented for ensuring each Managing Director defined and documented their Health and Safety
targets for 2025. Those targets are defined in accordance with the Group objectives for Health and Safety and are
also adapted to the local business specifications. The Managing Directors are supported by appointed Health and
Safety Champion, and representatives from various Business Units, who are responsible for the KPI data collection,
the target set up, and continuous improvement by implementing and the monitoring best practices. Eurofins
understands the importance of tracking and managing workplace incident metrics. More than 90% of laboratories
within the Eurofins Network are monitoring safety related incidents. Fatalities (Employee and contractor), Total
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Recordable Incident Rate (TRIR) and Lost Time Incident Rate (LTIR) are being tracked and reported and additional
efforts are underway to expand the reporting scope of these metrics to facilitate consistent measurement of safety
performance across all sites. In order to ensure complete alignment among our many sites, the definition of our
Health and Safety metrics are presented in a specific internal policy.
Eurofins created an active network of over 400 local Health and Safety Champions in each country we operate in
from all Business Lines. Those Health and Safety Champions are not only in charge of the reporting process for
the Health and Safety KPIs (TRIR, LTIR, Fatalities) but also for sharing their local experiences and actions so the
Group can always be proactive in protecting our employees. The regular quarterly global virtual meetings organised
with the community of Health and Safety champions are a formidable opportunity for sharing Health and Safety
knowledge and best practices, aligning on understanding of KPI definition, and creating bridges with the Risk
department. In 2024, we have made great progress in the measuring and understanding of each reportable incident
via root cause analysis. We aim to publish the corresponding data in line with CSRD requirements once applicable
to Eurofins.
During 2024, a Health and Safety internal site accessible to every Eurofins employee was created. This site
contains the presentations shared during the meeting with the network of Health and Safety Champion, some
trainings and tools boxes which can be used to continuously improve Health and Safety performance, and links to
resources. These resources are not only useful to the community of Health and Safety champions but also to all
Eurofins employees facilitating better understanding and preparedness to identify at risk situation. This proactive
approach reflects our commitment to safety and continuous improvement.
Operating laboratories in various countries presents unique challenges, for example different regulatory standards,
safety practices and risk factors. Additionally, the nature of laboratory work often involves handling hazardous
materials, conducting intricate experiments and using sophisticated equipment. This complexity inherently
increases the likelihood of incidents, that is why, by adhering to Group guidance and committing to ongoing
improvement, our leaders can foster an environment where safety is prioritised and embedded into the
organisational culture, ultimately leading to enhanced employee well-being and operational success.
It is with great sadness that the Group reports four work-related fatalities in four separate tragic incidents in 2024,
three of which were contractors and one of which was a Eurofins employee. One fatality happened on the road,
two within our Lab Operations and one was a fall accident during a work break. We will continue to improve our
Health & Safety programmes to prevent these dramatic events from occurring.
The health and safety of our employees and our non-employee workers always comes first and is the top priority
for the Leaders within the Eurofins Network. We conduct all business in compliance with responsible social and
safety policies and the Eurofins Group Health and Safety Policy which sets out Eurofins’ approach in relation to the
assessment and control of health and safety risks arising from business activities. These fatalities reinforce our
determination to work to ensure that our work activities do not negatively affect the safety and health of our people.
In the case of each incident, immediate thorough investigations were initiated to fully understand the scope of the
accidents. From there, corrective and preventative actions were taken where applicable, and key learnings and
measures were shared with our global network of over 400 Health and Safety Champions to increase risk
awareness and facilitate the implementation of applicable preventative measures.
Safety training of all our employees is also critical to ensuring awareness and compliance. Through the Eurofins
Learning Centre, a global mandatory course “Fire and Flammable Awareness” is offered to all employees and is
available in 17 languages. In addition, many Eurofins subsidiaries have local training sessions and site-specific
procedures that all employees are required to complete. Some examples include Fire Extinguisher training,
Personal Protective Equipment (PPE) policies, and building emergency evacuation procedures. In addition, the
Global virtual meetings with all the Health and Safety Champions are recorded and made available to Eurofins
Leaders.
Eurofins operates several laboratories that have already opted for voluntary external recognition demonstrating
their commitment toward Health and Safety standards. Several Eurofins Legal Entities are already recognised
according to different international standards such as OSHAS 18001, ISO 45001, MASE, which are all
internationally recognised standards for Occupational Health and Safety management.
Eurofins strongly encourages all the different legal entities to use external recognition systems, such as
Accreditation Bodies, for recognising their work and the implemented processes regarding the management of the
Health and Safety, as well as for demonstrating their continuous improvement in increasing the well being of their
employees.
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__________________________________________________________________________________________
Eurofins Sustainability in Action - Case study – “Prevention Challenge”
Eurofins Environment & Tribology France, Belgium, Portugal, Poland, and Romania
In 2024, Eurofins Environment & Tribology launched the first edition of
the Challenge Prevention, a two-month initiative engaging over 60
Eurofins entities in France, Belgium, Portugal, Poland, and Romania.
Designed to highlight best practices and raise awareness on safety, the
challenge encouraged teams to be proactive through discussions,
workshops, and hands-on activities—all while maintaining a record of
zero accidents.
Over 73 suggestions for improvement were proposed to the committee,
showcasing the teams' commitment to enhancing safety. Notable actions
included fire evacuation exercises with a local fire department in
Portugal, vehicle safety improvement suggestion in France to utilise
flashing beacons to reduce risks, and ergonomic upgrades like stainless
steel risers that eliminated back pain for employees.
The initiative strengthened collaboration and safety culture across all
participating laboratories. The top three entities were rewarded cash
price to reinvest in prevention, showcasing Eurofins' commitment to
continuous improvement in health and safety.
Case study – “Hold Health Promotion Seminars for Employee Well-being”
Eurofins Taiwan SunDream Environmental Technical Co. Ltd
Employees spend over one-third of their day at work, leading to physical fatigue and psychological stress, which
can pose health risks over time. Since 2020, Eurofins Taiwan SunDream Environmental Technical Co. Ltd has
implemented on-site health services and organised health promotion seminars addressing common health issues.
The goal is to empower employees to identify the sources of their health problems through guidance from external
professionals and adopt effective improvement strategies to reduce health risks. The seminars include 3 sessions
on physical health and 2 on mental health.
.
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4.4.6 Giving Back
GRI Standard/Disclosure: 413-1
The Eurofins Foundation
Background & Overview
At Eurofins, giving back to the communities in which we do business and to organisations in need is a top priority
– both at a local level as well as at a Group level. Every year, many Eurofins companies and laboratories engage
in activities to support local charitable organisations, and since its official creation in 2019 as a Public Interest
Foundation, the Eurofins Foundation has been providing financial support to NGOs, charities, and not-for-profit
social enterprises in the areas of: environmental protection; nutrition and health; and inclusion, diversity and
equality. The Eurofins Foundation also offers support to student research projects which aim to contribute to a
safer and healthier world but lack sufficient financial resources.
The Eurofins Foundation is managed by a Secretariat, supported by a Steering Committee, elected for a three-
year term, which as of December 2024 was comprised of 16 Eurofins employees representing our major business
lines and geographic footprint.
For full details about the scope of the Eurofins Foundation, please visit our website.
Since its inception in 2019, the Eurofins Foundation has disbursed 382 grants and in 2024, committed to an
additional 75 grants to support projects in numerous countries around the world.
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Our Donations in 2024
In 2024, the Steering Committee and Secretariat of the Eurofins Foundation reviewed 886 applications and
selected 75 (8%) for funding.
Below are a few examples of the many impactful projects that the Eurofins Foundation is supporting in 2024. For
full descriptions of the projects the Eurofins Foundation has supported to date, please visit our website.
A Few of the Projects we Contributed to in 2024
Vita
Sustainable Stoves: Empowering Women for Healthier Homes
Project Country: Ethiopia
Vita is a non-profit organisation dedicated to promoting sustainable development and improving
livelihoods in rural communities across East Africa. With a focus on environmental sustainability
and economic empowerment, Vita implements projects and initiatives that address critical
challenges such as poverty, food insecurity, and climate change. By collaborating with local
communities, governments, and partner organisations, Vita designs and implements innovative
solutions tailored to the specific needs and contexts of each community. Key areas of intervention
include access to clean water and sanitation, renewable energy solutions, agricultural
development, and capacity-building programmes. Vita is committed to fostering long-term
positive impact and empowering individuals and communities to build resilient, thriving futures.
To help address the pressing environmental and health challenges associated with traditional
cooking methods in rural Ethiopia, Vita launched a project to increase the adoption of sustainable
fuel-efficient cookstoves. The project aims to improve indoor air quality, and chest, eye, and heart health, reduce
chronic back pain and burns, create better access to education for girls by minimising the hours spent gathering
wood and reduce deforestation rates, carbon emissions and soil erosion.
Please note: The Eurofins Foundation ensures that all selected projects include Diversity, Equality and
Inclusion, and Sustainability.
2024 Selection – Primary Areas of Intervention
Environment
27%
Health, incl. Nutrition & WASH
(Water, Sanitation, Hygiene)
40%
Entrepreneurship &
Empowerment
17%
STEM Education
16%
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In 2024, the Eurofins Foundation supported this project, helping Vita to reach about 3,300 people in the Gamo
region of Ethiopia, and make a significant step towards Vita’s broader goal of supporting 250,000 people across
Ethiopia in 2025 as part of its larger stove programme.
Anahat For Change Foundation
Gendering Agriculture: A Kitchen Garden Project to Uplift the Community
Project Country: India
Founded in 2018, Anahat For Change Foundation inspires people
to fight for the rights of women and girls by catalysing leadership in
communities and building larger movements of change to address
the deeply rooted cultural norms that perpetuate gender-based
discrimination and violence. By empowering women with livelihoods
and knowledge, the women can live their lives with respect, dignity,
and freedom from violence. To date, the Anahat For Change
Foundation has reached more than 4500 families across India.
Ten years ago in North Bengal, the factory in the Lankapra and
Dalmore Tea Garden was suddenly closed, leaving more than 9000
tea workers without employment and in financial hardship. The closure also caused the rates of school dropouts,
human trafficking, and domestic violence to increase dramatically. In addition, without economic stability, vitamin
and mineral deficiencies have created “hidden hunger” in the tea garden population. To help address these
challenges, the Anahat For Change Foundation will support families to create kitchen gardens, providing the rural
resource-poor communities with a platform for innovation in supplemental food production as well as an opportunity
to improve their livelihoods. Family labour, especially the efforts of women, will be particularly important in the
management of these gardens and in making kitchen gardening a profitable initiative.
In 2024, the Eurofins Foundation selected this project, helping Anahat to begin creating a sustainable model for
families which improves income levels and creates a daily source of nutritious food.
Science from Scientists
During School STEM Enrichment Programme in the Twin Cities
Project Country: United States
Science from Scientists (SciSci) is an award-winning, American
nonprofit organisation with a mission to teach and inspire the next
generation to identify and solve real-world problems by improving
STEM (science, technology, engineering, and math) literacy. Its
signature programme sends real scientists into classrooms to
deliver hands-on, minds-on STEM lessons to students during
school hours. By inspiring students, building their confidence,
igniting their interests, and developing their knowledge and skills,
SciSci aims to create talented, competent individuals and change
life trajectories.
SciSci’s "In-School Module-Based Program” (ISMB) is a STEM education initiative designed for elementary and
middle schools and has been shown to improve science proficiency scores by 10%. The programme pairs each
partner school with two real scientists who blend their expertise in science and education to deliver hands-on, mind-
on STEM lessons to students. With 8-16 bi-weekly visits throughout the school year, the two dedicated SciSci
Scientist Educators build personal relationships with students. This consistent interaction during school allows all
students in a grade, not just those in after-school programmes, to fully explore a variety of STEM topics, maximising
engagement and fostering a strong STEM identity among students, encouraging them to see themselves as future
scientists and engineers. Additionally, the programme integrates career connections into lessons, exposing
students to diverse STEM professions and helping them understand the relevance of STEM topics in their lives.
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In 2024, the Eurofins Foundation selected to support 500 students receiving SciSci’s ISMB programme in 13
schools in the “Twin Cities” (Minneapolis – Saint Paul). Of the students, 75% are from ethnic/racial minority
communities.
BOMA
Nurturing Health, Nutrition, and Sustainable Livelihoods for Last-Mile Communities through REAP for Nutrition
Project Country: Kenya
BOMA is a Kenyan non-governmental organisation (NGO)
pioneering a transformative approach to alleviating poverty and food
insecurity and empowering women and girls in the drylands of
Africa. BOMA works to provide the people and governments of
Africa’s drylands with economic inclusion programmes that increase
resilience to multiple crises. In an era marked by global crises
encompassing conflicts, climate fluctuations, inflation, and other
shocks, BOMA's poverty graduation model, the Rural
Entrepreneurship Access Program (REAP), helps ultra-poor women
start and build businesses and savings groups, increase their
household financial and food security, build their resilience to
emergencies and shocks such as droughts, invest in their children’s health and education, and increase their voice,
choice, and agency in their households and communities. Since 2009, BOMA has helped more than 898,680
women and children break the intergenerational cycle of extreme poverty by establishing more than 44,559
businesses and 6,461 savings groups.
Children in the Arid and Semi-Arid Lands (ASALs) of Africa are vulnerable to acute malnutrition that has persisted
at emergency levels. Malnutrition causes household members, especially children and adolescent girls, to suffer
from preventable and treatable diseases that compound their vulnerability. To help address these challenges,
BOMA launched REAP for Nutrition (R4N) – a nutrition sensitive REAP adaption. R4N helps participants exit from
generational extreme poverty according to a graduation criteria of food security, sustainable livelihoods, shock
preparedness, and human capital investment. Participants gain financial stability and nutrition knowledge through
R4N, which helps them lead healthy and resilient families.
In 2024, the Eurofins Foundation selected to support the R4N project, enabling BOMA to provide nutrition modules
and tailored interventions like cooking demonstrations and business training to 3,000 direct participants and 15,000
indirect participants in the Kenya-Ethiopia border in Moyale, building on the success of its 2022-2023 pilot
programme.
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4.5 Governance
4.5.1 Corporate Culture
GRI Standard/Disclosure: 2-12
The Eurofins Core Compliance documents that define our Corporate Culture are:
• Eurofins Group Code of Ethics
• Eurofins Leadership Charter
• Our Vision, Mission and Values - Eurofins Scientific
The Eurofins Group Code of Ethics serves as a standing guideline for all people working for, or with, the companies
belonging to the Eurofins Network. It is designed to set out a series of ethical conduct principles which support
Eurofins’ values of Customer Focus, Quality, Competence & Team Spirit and Integrity. It is not intended to be
limited to the areas which it addresses specifically, and it should be interpreted in accordance with the general
principles stated in Eurofins Values. Leaders of all companies belonging to the Eurofins Network are expected to
comply with this Code of Ethics and implement it by adopting formal policies and procedures specific to the
company(ies) they are in charge of in line with this Code of Ethics and Eurofins Values, taking into account local
legislation and customs, as well as appropriate business practices. Eurofins expects its Leaders and employees
and other persons acting for, or on behalf of, any Eurofins Company (Associates) to:
• follow all legal obligations applicable to the company/country in which they are active; and
• behave in accordance with the principles laid out in this Code of Ethics, Eurofins Values, Eurofins
Leadership Charter and related Eurofins Core Compliance policies.
Eurofins Leaders must ensure that these obligations and principles are adhered to by all employees and Associates
in their area of responsibility. We work with our suppliers, service providers and customers to ensure that they are
aware of, and whenever possible support, the objectives set out in this Code of Ethics. We expect Associates
working for, or on behalf of, Eurofins to act consistently with these principles. Where this Code of Ethics requires
an Associate to behave in a certain manner, appropriate provisions shall be included in the relevant contract.
Eurofins CEO, Board of Directors and Group Operating Council are the most senior level leaders in the organisation
who are accountable for the implementation of these policies.
The following third-party standards that are respected through the implementation of the Eurofins Group Code of
Ethics are:
• International Labor Organisation
• Universal Declaration of Human Rights;
• the four Fundamental Principals and Rights at Work;
• the International Covenant on Civil and Political Rights;
• the International Covenant on Economic, Social and Cultural Rights;
• the United Nations Conventions on the Elimination of All Forms of Discrimination against Women and on
the Rights of the Child,
• the Right to Organise and Collective Bargaining Convention, the Slavery Convention as well as other
international laws, conventions and custom addressing slavery, slavery-like practices and forced labour
child labour laws, equal opportunity and fair employment
The compliance statement within the Eurofins Group Code of Ethics policy describes the consideration given to
the key stakeholders, “Ethical and compliant behaviour is a core value of our business. Our clients, suppliers,
employees and other stakeholders have to be able to rely on absolute integrity from our part. As such, it is non-
negotiable. All our activities rely on and require ethical and compliant conduct of our leaders, employees and
partners in all aspects of our companies’ business.”
The policy is made available to all affected stakeholders on the Eurofins Core Compliance Documents webpage,
through mandatory annual Ethics training for employees and tracking of Code of Ethics compliance with Suppliers.
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4.5.2 Sustainability Governance
GRI Standard/Disclosure: 2-9, 2-11, 2-12, 2-13, 2-14, 2-15
The Board of Directors is currently composed of eight members, six of whom are non-executive and of those six,
five are independent directors. Each year, the Board of Directors reviews the suitability of each of its independent
members according to the Ten Principles of Corporate Governance of the Luxembourg Stock Exchange (available
at https://www.bourse.lu/corporate-governance).
Diversity policy:
The Directors shall be selected on the basis of their knowledge, experience and qualification to carry out their
mandate. The Board of Directors believes in the intrinsic benefits of diversity and it recognises that diversity of
thought makes valuable business sense. Having a Board composed of men and women with diverse skills,
experience, background and perspectives means robust understanding of opportunities, issues and risks, inclusion
of different concepts, ideas and relationships, enhanced decision-making and dialogue, and heightened capacity
for oversight of the organisation and its governance.
The diversity policy of the Company’s Board of Directors sets forth the following main objectives:
• Gender diversity: with the ultimate objective to achieve female / male parity, the Board is committed to ensuring
gender diversity and aspires to maintain a Board in which each gender represents at least 40% of the total
number of Board members;
• Age vs seniority: age of Board members is not relevant to the extent they bring the necessary skills and
experience to the Board; however, the tenure on the Board shall not exceed ten years for non-executive
independent directors with the objective to ensure rotation of independent directors at regular intervals;
• Qualification: upon recommendation of the Nomination and Remuneration Committee, the Board shall aim to
submit for the approval at the Company’s AGM of shareholders the appointment of new directors who have
the necessary qualification and will bring competences to the Board in the field inter alia of international
expertise, operational and industry expertise, technology / digital expertise, risk management expertise,
financial and human resources expertise as well as Environment, Social and Governance (ESG) expertise.
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The current members of the Board of Directors are as follows (including 3 Luxembourg nationals, 3 French
nationals, one German national and one Italian national):
The Company’s Board of Directors has delegated to the Sustainability and Corporate Governance (S&CG)
Committee, a committee of independent directors appointed by the Board, the oversight of corporate sustainability
and general corporate governance related matters.
Among other duties, the Committee assesses the adequacy,efficacy and implementation of the Group’s corporate
sustainability strategy and related ESG performance indicators, including the Group’s policies and
recommendations regarding the environmental impact of its business activities and prevention of climate risk.
More particularly, the Sustainability and Corporate Governance Committee monitors and evaluates the Company's
ongoing commitment to environmental stewardship, health and safety, corporate social responsibility, corporate
governance and sustainability as relevant to the Company.
In doing so, the S&CG Committee supports the Board’s responsibilities, in compliance with the Non-Financial
Reporting Directive (NFRD) 2014/95/EU, and in preparation to conform with the European Corporate Sustainability
Reporting Directive (CSRD) 2022/2464/UE, dated 14 December 2022, once enforced in national law in
Luxembourg, of ensuring:
• The incorporation of relevant sustainability and ESG matters into organisational purpose, governance,
strategy, decision-making and risk management, and accountability reporting;
• The understanding and alignment of sustainability and ESG priorities throughout the organisation;
• The identification of appropriate targets and metrics, and the monitoring thereof;
• High quality reporting, with the aim that material sustainability and ESG-related information are disclosed with
the same level of quality and accuracy as financial information.
Lastly, the Committee shall oversee the preparation and review of the integrated ESG report to be submitted to the
Company’s Board of Directors for formal approval based on the recommendation issued by the Audit and Risk
Committee.
As of December 31
st
, 2024, the Sustainability and Corporate Governance Committee consisted of the following
members:
• Patrizia Luchetta (Chairperson)
• Pascal Rakovsky
• Ivo Rauh
• Evie Roos
The Sustainability and Corporate Governance Committee held five meetings in 2024 and the attendance rate of
the Committee members was 100%.
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During the meetings, the Sustainability and Corporate Governance Committee discussed sustainability
(Environment, Social and Governance or ESG) and corporate governance related topics relevant to the Eurofins
Group. The Sustainability and Corporate Governance Committee particularly focussed on the following topics:
• Review and approval of the Eurofins 2023 ESG report;
• New or amended lease agreements with related party;
• Verification that all related party leases have been reviewed;
• Schedule of planned lease amendments and renewals in 2025;
• Discussing ESG strategy alongside the double materiality assessment exercise;
• Discussing feedback received from ESG rating agencies and proxy advisors on Eurofins’ ESG report and
discussing improvement proposals for the 2024 ESG report;
• Discussing progress made on ESG key metrics and reporting disclosures to be included in Eurofins’ 2024 ESG
report;
• Discussing ESG governance in coordination with the Executive Sustainability Committee;
• Discussing progress in Diversity, Equity and Inclusion initiatives made in 2024;
• Discussing ESG incentives incorporated into the Group purchasing and procurement policy with third parties;
• Follow-up on the draft sustainability reporting standards developed by EFRAG in the context of the gradual
implementation of the European Corporate Sustainability Reporting Directive and the adoption of new
European Sustainability Reporting Standards (ESRS);
• Discussing progress made in relation to the EU Taxonomy and SBTi enrolment;
• Discussing Group Risk management framework with a focus on climate change related risk exposure;
• Discussing ethics and compliance and whistleblowing activity in 2024;
• Self-assessment of the internal functioning of the Committee;
• Review of the Company’s Related Party Transactions Policy; and
• Regular review of the Committee’s terms of reference.
It should be noted that in 2023, both Patrizia Luchetta and Evie Roos have successfully completed an online
diploma programme in “ESG” at the Corporate Governance Institute and the certified course, “The future of
Sustainable Business: Enterprise and the Environment” at the University of Oxford respectively. As a result, they
bring enhanced ESG skills to the Board of Directors.
Board Statement:
The profitable growth of Eurofins hinges upon the economic, environmental, and social sustainability of its activities
worldwide.
Progress towards meeting the UNSDGs requires targeted responses. More particularly it requires the recognition
that gender equality and environmental goals are mutually reinforcing; and that leadership is a prerequisite to
achieve these goals.
This is why the Board:
• Recognises its responsibility towards all the stakeholders;
• Endeavours to make sure that Eurofins’ corporate governance framework supports the company’s strategy
and ambitions in the field of ESG;
• Aims to lead by example by making sure that its composition is diverse, in terms of competences, background
and gender.
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In 2024, the Executive Sustainability Committee continued to meet on a monthly basis to review, implement and
deliver critical aspects of Eurofins’ ESG initiatives. The Committee is comprised of Group Operating Council (GOC)
leaders and Senior Managers covering both operational and functional areas of Group activities. For example,
Executive Sustainability Committee members represent Finance, Investor Relations, Transformation and
Operational Excellence.
As of December 31
st
, 2024, the Executive Sustainability Committee consisted of the following members:
The Executive Sustainability Committee has responsibility for:
• Facilitating the delivery of our ESG roadmap including expanding reporting of KPIs;
• Oversight of Project Owners’ data collection efforts and archival of data;
• Monitoring relevant trends and developments in sustainability and reporting to the GOC and the Board if
programme improvements or enhancements are recommended;
• Reporting to the GOC and the Sustainability and Corporate Governance Committee on the progress made
related to data collection and KPI reporting;
• Ensuring the Eurofins Group continually improves ESG initiatives and reporting.
The Board of Directors and the Executive Sustainability Committee will look to make further progress in 2025 by
working together to embrace and comply with the forthcoming European legislation to implement the Corporate
Sustainability Reporting Directive (CSRD) in fiscal year 2025.
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4.5.3 Corporate Governance
GRI Standard/Disclosure: 2-9
Eurofins’ corporate governance practices are governed by Luxembourg laws and its articles of association (the
“Articles”). Eurofins endeavours to align its corporate governance with the general principles of corporate
governance set forth in the Ten Principles of Corporate Governance of the Luxembourg Stock Exchange (available
at https://www.bourse.lu/corporate-governance) (the “Ten Principles”). To the extent applicable, Eurofins also
complies with the provisions of the Law of 24 May 2011 on the exercise of certain rights of shareholders at general
meetings of listed companies, which was amended by the Law of 1 August 2019 implementing EU Directive
2017/828 as regards the encouragement of long-term shareholder engagement (hereinafter defined as the “Law
of 2011”). The following section sets out a short update to the Corporate Governance Statements for the period
ended on 31 December 2024. The Corporate Governance Charter can be found on our website under
https://www.eurofins.com/about-us/corporate-sustainability/governance/
4.5.4 Sustainable Procurement and Supply Chain Management
GRI Standard/Disclosure: 2-6, 205-2, 308-1, 308-2, 414-1
By integrating sustainability into purchasing decisions, organisations can reduce their carbon footprint, promote fair
labour practices, and support the development of a circular economy. This approach not only helps protect the
planet but also enhances a company’s reputation, drives cost savings, and fosters long-term resilience throughout
the supply chain. With this guiding philosophy in mind the Eurofins Purchasing Team facilitates annual, internal
distribution of ESG-related training materials and implements deliverables defined in its Sustainable Procurement
programme. This programme reflects actions in regard to the main objectives governed by European Sustainability
Reporting Standards (ESRS) regulation and clearly documents focus areas for each Eurofins Purchasing
employee.
Eurofins is committed to working with suppliers who are aligned to the same set of values.
This Eurofins Group Supplier Code of Ethics is applicable to all suppliers and service providers, including their
employees and agents, who provide goods or services to Eurofins companies. This code ensures responsible,
ethical treatment of employees, stakeholders, and the community in which a suppliers’ and Eurofins’ business
operates. It promotes diversity and inclusion adoption by suppliers and requires fair-trade relationships among
business partners. Additionally, The Eurofins Group Supplier Code of Ethics underlines a supplier’s obligation to
comply with all applicable environmental laws and regulations and to operate in a manner which maximises
sustainability of resources and limits, to the extent possible, their impact on the natural world. Eurofins recognises
that suppliers operate in different cultural and legal environments. Therefore, with the Eurofins Supplier Code of
Ethics, Eurofins provides advice and recommendations on how it’s Suppliers may identify and avoid improper
behaviour when carrying out business for Eurofins. At the same time, Eurofins strongly encourage suppliers to
exceed these recommendations, and to promote best practice and improvement throughout their own supply chain
and to comply with all applicable legal obligations. This Code forms part of the Eurofins General Terms and
Conditions of Purchase attached to Eurofins purchase orders distributed via Eurofins’ network-wide procurement
system. In 2024, Eurofins’ Supplier Code of Ethics has been separately agreed to or acknowledged by vendors
accounting for more than 58% of Eurofins’ total purchasing spend and 90% of core supplier spend.
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4.5.5 Honesty, Integrity and Human Rights
GRI Standard/Disclosure: 2-16, 2-23, 2-26, 2-27, 2-30, 205-1, 205-2, 205-3, 206-1, 207-1, 207-2,
207-3, 303-2, 403-7, 406-1, 407-1, 408-1, 409-1, 415-1
Eurofins is built on values of integrity and reputation. Our clients trust us in areas that are highly sensitive, and they
expect the highest level of integrity and competence from each Eurofins laboratory and each Eurofins Employee.
Full compliance with these values and all associated laws, regulations and policies is the outcome of an
organisation meeting its obligations and is made possible and sustainable by embedding a value of compliance
and ethical behaviour in the culture of the organisation and its people.
Embedding compliance in the behaviour of all the people working for an organisation, depends, above all, on
leadership and clear values, as well as an acknowledgement and implementation of measures to promote
compliant behaviour.
Our Eurofins Vision, Mission and Values provide the basic foundation of how entities within the Eurofins Network
shall do business. Within this framework, we expect our leaders to act as role models for all employees. The
Eurofins Leadership Charter and The Eurofins Entrepreneurial Model outline the behaviour we expect,
encourage, and foster.
The Eurofins Group Code of Ethics, as the central compliance document, provides instructions for every Eurofins
employee. In line with Eurofins’ broad and holistic approach to compliance and business ethics, it covers a wide
spectrum of ethics related topics. In addition to essential business-related themes like a strict anti-bribery and anti-
corruption commitment and an unconditional commitment towards legality and compliance with labour laws, it
extends to including the four fundamental principles contained within the International Labour Organisation (ILO)
Declaration and commits to supporting human rights in line with the stipulations contained within the Universal
Declaration of Human Rights. Furthermore, requiring our suppliers to comply with and acknowledge the Eurofins
Code of Ethics sets clear expectations to ensure compliance with labour laws and human rights stipulations within
our supply chain. The Eurofins Group Code of Ethics is also further described under section 4.4 - Social.
Eurofins’ strong commitment to compliance and ethical behaviour is confirmed and strengthened in a number of
more detailed statements, guidelines and policies, which further expand on the principles laid out in the Eurofins
Code of Ethics:
1. The Eurofins Group Anti-Bribery Policy
2. The Eurofins Group Modern Slavery Statement
3. The Eurofins Group Fair Competition Policy
4. The Eurofins Group Equal Opportunities and Fair Employment Policy
5. The Eurofins Group Health and Safety Policy
6. The Eurofins Group Privacy Policy
7. The Eurofins Group Policy on Ethical Behaviour at Laboratories (with Examples of Prohibited
Behaviour and Information about Whistleblowing Channels)
8. The Eurofins Group Policy on Ethical Behaviour during Audits, Inspections and other Offsite
Operations
9. The Eurofins Group Supplier Code of Ethics
10. The Eurofins Group Whistleblowing Guidelines
To ensure that the compliance requirements set out in the Eurofins Group Code of Ethics and other Group Core
Compliance Documents are fully understood and respected by our employees and leaders, Eurofins has developed
comprehensive online training materials around a broad range of compliance topics. The online training for the
Eurofins Group Code of Ethics and the Eurofins Group Anti-Bribery Policy are mandatory for all Eurofins
employees and leaders. To pass the training, a mandatory test has to be taken, with 100% pass score required for
the Eurofins Group Code of Ethics training. Moreover, each compliance-related training requires a mandatory
compliance commitment for its completion. The online training for the Eurofins Group Code of Ethics was taken
and successfully completed by 54,800 of our Employees in 2024. The related online training for Ethical Behaviour
at Laboratories, which is tailored to an audience working in our laboratories, has been successfully completed by
47,135 Employees in 2024. The training on the Eurofins Group Anti-Bribery Policy has been successfully
passed by 54,571 Employees and Leaders in 2024. Going forward, the online trainings for the Eurofins Group
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Code of Ethics and the Eurofins Group Anti-Bribery Policy, among others, will be a mandatory onboarding
element for every new Employee joining the Eurofins Group, targeting a 100% completion rate.
Eurofins encourages all of its employees to report any breaches of the Eurofins Group Code of Ethics or other
compliance concerns to the Whistleblowing Point of Contact. This point of contact is readily accessible for all
employees via Eurofins’ intranet, and can also be accessed on Eurofins' website, making this channel available
not only to our employees, but to any and all external stakeholders. On the Whistleblowing Point of Contact, issues
can be raised confidentially, maintaining the whistleblower’s anonymity if he/she wishes so. The reports enable
Eurofins to address and correct inappropriate conduct and actions that breach the Eurofins Group Code of Ethics.
In 2024, a total number of 47 reports were recorded via the internal and external whistleblowing channel. Of those
47 reports, 32 cases were confirmed relevant and were further investigated; for the remainder, the allegations were
not compliance-relevant or did not concern a reportable whistleblowing event. A total of 4 cases resulted in a
confirmed compliance breach, typically combined with remedial action.
Enforcement of compliant behaviour is further fostered by a comprehensive internal and external auditing schedule.
To safeguard financial integrity with a special focus on preventing corruption and bribery, every Eurofins legal entity
is audited by an independent financial audit firm on an annual basis, irrespective of whether there is a statutory
need for such audit or not. In addition to this, special audits specifically focussed on corruption and bribery were
conducted by internal auditors with the support of external auditors as required.
__________________________________________________________________________________________
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4.5.6 Enterprise Risk Management
GRI Standard/Disclosure: 2-12, 2-14, 2-23, 416-1
Board’s oversight of risks
The Board of Directors is responsible for establishing and monitoring the effectiveness of the Group Risk
Governance framework. This includes defining the main categories of risks faced by Eurofins as a whole and
delegating risk oversight responsibility for these categories to specific Committees, as outlined in Table 11 below.
These committees include the Audit and Risk Committee, the Sustainability and Corporate Governance Committee,
the Group Operating Council and the Executive Risk Committee.
Table 7: Eurofins Risk Taxonomy and Risk Oversight structure
The Audit and Risk Committee, which is exclusively composed of independent and non-executive Board members,
reviews the nature and extent of the risks that Eurofins is prepared to undertake to achieve its strategic objectives.
This Committee assists and makes recommendations to the Board of Directors to establish a risk control system
that ensures the identification and management of material risks. Furthermore, it has an oversight role, acting as
an intermediary between the internal and external auditors and the Board of Directors.
The Sustainability and Corporate Governance Committee, which is exclusively composed of independent and non-
executive Board members, assesses Eurofins’ policies regarding the environmental impact of business activities
and climate change related risks. It also oversees risks related to other Environmental, Social and Governance
(ESG) matters, policies, structures and processes to safeguard compliance with laws and regulations. It reviews
any material transaction where a conflict of interest or a potential conflict of interest may arise between the
Company’s affiliated entities and their employees or Directors. The Committee reports to the Board and provides
recommendations within its remit where it identifies the need for action or improvement.
Laboratory Operations Service Centres Operations
Markets and Industry
Information
Technology
Human Capital
Environmental, Social
& Governance (ESG)
Macroeconomic Trends
Research and
Development
Finance
IT governance and
business alignment
Recruiting and
retention
Corporate governance
Market dynamics Supply chain Accounting
IT infrastructure and
Inform. communication
Development and
performance
Health, Safety and
Environment
Mergers, acquisitions
and divestitures
Commercial Procurement
IT solutions developm.
and deployment
Compensation and
benefits
Climate change
Planning and resource
allocation
Quality Tax Information security Key person Human Rights
Communication/
investor relations
Order to Invoice Credit Management
IT operations
continuity
Labor relations
External Partners'
Ethics
Corporate Branding Physical assets Corporate monitoring
Operations
Compliance
Risk Taxonomy
Legal compliance
Regulatory compliance
Hazards (Fire, Natural disasters, Pandemic)
Risk Oversight
Board of directors
Audit and Risk Committee
Sustainability & Corporate Governance
Committee
Group Operating Council
Executive Risk Committee
Committees with direct involvement of Board members
Committees formed by Executive Management delegated by the Board
Committees with direct involvement of Board members
Committees formed by Leaders delegated by the Board
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132
The day-to-day management of Eurofins is entrusted to an executive committee named the Group Operating
Council (GOC), composed of the operational and functional international business leaders of the Group, and
presided by the Chief Executive Officer as GOC Representative. The Group Operating Council supports the Board
of Directors in different specialised areas of expertise and oversees the assessment and mitigation of the relevant
risk areas of the Group’s operations.
The Executive Risk Committee meets at least three times a year and is composed of the Chief Financial Officer,
Chief Operating Officer Food & Feed and Environment Testing, the GSC Head of Purchasing, Legal, Risk and
Insurance, and the GSC Risk and Business Continuity Manager. Depending on the agenda, additional business
and functional leaders are invited as subject-matter experts to discuss specific risks. The Executive Risk Committee
supports the Board of Directors, the Board-level Committees, and the Group Operating Council with the execution
of their risk management functions. The Committee guides the development of the Group risk management
framework. It supervises the ongoing development of material risks and respective mitigations. It strives to ensure,
in alignment with the Board of Directors and other regional or national operational leaders, that Managing Directors
and Presidents across Eurofins’ entities have the necessary skills to manage the various principal risks that are
considered to require specific monitoring and mitigation plans.
The Directors involved in the above-mentioned risk oversight committees bring a wide range of experience and
competencies covering the most relevant risk areas (Market and Industry, Laboratory Operations, Financial
Operations, Information Technology, Human Capital, Compliance and, ESG) ensuring effectiveness of risk
oversight.
Enterprise Risk Management process
Eurofins built its Enterprise Risk Management framework based on the ISO 31000 standard. The GSC Risk and
Business Continuity Manager coordinates a risk identification process, performing risk interviews with Business
and Functional Leaders. Material risks are analysed, evaluated, and reported in the Group Risk Register, together
with their respective mitigations.
To facilitate a comprehensive risk identification process, Eurofins developed a risk taxonomy that reflects the risk
categories relevant to Eurofins as a whole. The taxonomy is regularly updated and expressly accounts for risks of
both financial and non-financial nature (see table 7). Where possible, the identified risks are evaluated considering
their potential impact and likelihood of occurrence.
The outcome of the process is discussed at regular intervals by the Executive Risk Committee that initiates
mitigation actions, assigns accountabilities, monitors the development of mitigation plans, and eventually escalates
relevant information to the Board-level committees or directly to the Board of Directors. The existing mitigation
strategies are reviewed at least yearly to determine if they are effective and sufficient in consideration of the
changing external and internal operating environment.
The overall effectiveness of the Enterprise Risk Management framework and process is systematically evaluated
on a yearly basis by the GSC Risk Manager and the Executive Risk Committee to assess the requirement of
improvement actions.
Principal Risks
Eurofins has opted for an entrepreneurial, decentralised business structure, comprised of many independent
companies. Each of these companies is led by a fully empowered Managing Director that is accountable for
managing operational risks within their scope of responsibility, ensuring that existing risk management guidelines
issued by Eurofins Scientific SE Group Service Centre are followed and escalating risks that could be material at
a consolidated level. A detailed list of all risks that Eurofins’ management reasonably expects to face is provided
in section 5 – Risk Factors, of this Annual Report.
This section outlines the principal risks that, in case of materialisation and in a worst-case scenario, could result in
a material impact at a consolidated level. It provides insights into their possible consequences and respective
mitigation measures. It includes financial and non-financial risks that may affect the achievement of the
consolidated financial and strategic objectives, sustainability targets, and brand reputation.
The principal risks are identified and monitored as part of the Group’s Enterprise Risk Management process, which
covers all categories of the Risk Taxonomy. In addition to the principal risks reported below, each Managing
Director of a Eurofins Legal Entity may establish additional initiatives to identify, monitor and mitigate locally specific
risks related to their scope of responsibility.
The risks reported below are not listed in any order of potential impact or probability of occurrence.
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• Market and Industry
Risk Category
Possible Consequences
Main Mitigations
Market Dynamics –
competitive landscape,
including:
• industry consolidation trends
resulting in more competition
among big players in terms of
customer, staff and companies
acquisition,
• increasing competition
between kit/ instrument
manufacturers that could gain
market share by offering quick
tests that are less accurate but
cheaper (on-site testing),
• new (or growing) specialised
players, with innovative service
offerings and/or different
business models, in specific
market segments,
• failure to innovate services and
business models.
• Price reduction of tests and
services provided by Eurofins
companies,
• shift in customer preferences,
impact on demand for Eurofins
companies’ services and a
reduction of market share,
• adverse effect on the Group’s
profit margins, financial position
and operating results.
• Continuous development of new and
innovative services,
• focus on high quality and reliability,
• flexibility and excellence in customer
service,
• short Turnaround Time (TAT),
• business diversification in many regions
and various market segments,
• empowered leaders in a decentralised
organisation, allowing for the fast, local
monitoring of threats and identification of
suitable mitigation strategies,
• proven track record in successful
acquisitions of laboratories, facilitating
access to new technologies and markets,
• standardisation and industrialisation of
processes to lower costs and increase
quality,
• regular strategic business line reviews at
regional level,
• systematic customer satisfaction
measurement (Net Promoter Score
®
- NPS),
• initiatives to strengthen Eurofins’ brand,
• digitalisation and seamless digital customer
experience.
Market Dynamics –
Changes in legal
requirements, including:
• changes to government
policies and regulations related
to testing requirements,
impacting Eurofins companies’
business or the business of their
customers (e.g., deregulation,
relaxation of required controls or
reduction of required
inspections, tests or
certifications performed by TIC
service providers).
• Adverse effect on the demand
for, and/or prices of Eurofins
companies’ services,
• restricted ability to do business
in existing and/or target markets,
• adverse effect on the Group’s
operating results and earnings.
• Decentralised monitoring of regulatory
environment and political developments
applicable to Eurofins companies and in their
national or regional groupings,
• many Eurofins scientists are highly
qualified and serve on governments and
industry associations’ standardisation and
technical committees.
Macroeconomic trends,
including:
• persistent inflation and high
interest rates,
• global market slowdown,
• geo-political decisions that
lead to conflicts or unstable
economic conditions.
• Adverse effect on the Group’s
profit margins, financial position
and operating results,
• interruption of business,
operations, disruptions along the
supply chain, or restricted ability
to do business in existing and/or
target markets.
• Regular strategic business line reviews at
regional level,
• set of margin protection activities, such as
the regular monitoring and adjustment of
selling prices, cost management, the
stringent monitoring of purchase orders’
compliance, and the active negotiation of
purchasing prices of commodities,
• business continuity planning.
Mergers, Acquisitions, and
divestitures, including:
• incorrect evaluation of the
M&A target and of the market
potential,
• Improper integration of
acquired businesses and
consequent loss of clients.
• Reputation damage, loss of
clients and trust due to
unforeseen negative publicity,
legal issues, or quality problems,
• financial impact including
overpayment, asset impairment,
or post-merger financial
performance below expectation,
• potential intricate legal
challenges.
• M&A due diligence process involving
various experts and covering operational,
financial, tax, legal, insurance, IT security,
and real estate aspects to enhance
transparency, identify and mitigate potential
risks and optimise outcomes,
• Risk-adjusted ROI to evaluate possible
deals,
• Holdback or earn-out clauses to incentivise
sellers’ continuous involvement and based
on future performances,
• Post-acquisition onboarding process for
newly acquired companies, aiming to ensure
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134
Risk Category
Possible Consequences
Main Mitigations
an efficient and successful transition,
emphasising change management, risk
mitigation, and the standardisation of finance
and administration processes.
Communication, including:
• misjudgement of material
information/event and non-timely
disclosure to capital markets,
• negative publicity driven by the
dissemination of rumours and
false allegations (e.g., short
seller attack, negative /
misleading media reports).
• Reputational impact on
stakeholders’ confidence,
negatively influencing the share
price and/or the conditions to
access financial markets,
• potential investigations by
authorities and increased scrutiny
by regulators,
• potential fines (for company
and/or individuals),
• potential lawsuits filed by
shareholders to the company or
its directors for fraud or
negligence,
• organisational effort to defend
against and manage the fallout
from negative publicity.
• Mandatory training for all employees on
Eurofins Group Insider Dealing Policy, as
formalised in Eurofins Group Code of Ethics,
• monitoring of trading activities to identify
unusual trading patterns,
• adherence to regulations to prevent insider
dealing, e.g., statutory black-out periods,
maintenance of insider list, regulatory
notification of executive manager
transactions, etc.,
• enforcement of formal communication
processes and policies,
• monitoring of press and social media,
• social media policy.
• Operations (Laboratories and Service Centres)
Risk Category
Possible Consequences
Main Mitigations
Quality of analytical tests,
including:
• analytical errors made by
Eurofins entities,
• risk of theft, fraud or financial
or analytical result
misstatements by employees,
• testing method and process
non-compliance.
• Jeopardise the operations,
image marketing activities or
regulatory filings of Eurofins
companies’ clients,
• impact on consumers’ health or
property,
• damage to Eurofins and/or
customer brand reputation,
• criminal investigations,
• professional liability claims for
substantial damages,
• financial consequences,
including payment of indemnities
and fines.
• Audits of Eurofins companies’ Quality
Management Systems: External audits from
accreditation bodies, and internal audits
(unannounced or planned) by the Corporate
Quality team (Food and Feed Testing and
Environment Testing),
• execution of proficiency tests (PT),
including internal PT and mystery shopping,
• monitoring quality performance metrics to
drive continuous improvement initiatives,
• worldwide community of Quality Managers
to facilitate best practice sharing (Food and
Feed Testing and Environment Testing),
• quality best practice trainings,
• whistleblowing programme,
• contractual limitation of liability,
• professional liability insurance.
Licenses, permits,
accreditation and registration,
including:
• material delay in obtaining, the
failure to obtain or to renew, or
the withdrawal or revocation of
licenses, permits, approvals, or
other authorisations.
• Impact on customers’
operations,
• damage to brand reputation and
subsequent potential loss of
customers.
• Internal audits of the Quality Management
Systems (unannounced or planned) by the
GSC Quality team (Food and Feed Testing
and Environment Testing),
• execution of proficiency tests (including
internal PT and mystery shopping),
• monitoring of quality performance metrics
to drive continuous improvement initiatives,
• worldwide community of Quality Managers
to facilitate best practice sharing (Food and
Feed Testing and Environment Testing),
• quality best practice trainings,
• business continuity planning.
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135
Risk Category
Possible Consequences
Main Mitigations
Natural and Human Hazards,
including:
• natural disasters such as
floods, cyclones, earthquakes,
and forest fires that could impact
a Eurofins site or several sites at
the same time,
• accidental fire or explosion in a
laboratory, office, or data centre.
• People safety: possible injuries/
to or fatalities of employees and
others,
• interruption of business
operations or disruptions along
the supply chain,
• financial consequences,
including loss of revenues,
material damage to property, and
consequent reparation costs,
• damage to brand reputation and
possibly permanent loss of
customers,
• increased cost of working,
• Eurofins liabilities, e.g., to a
building owner when a Eurofins
company is a building tenant,
• increase in insurance costs,
• disruptions to IT infrastructure.
• Physical inspections, performed by
qualified engineers, of selected Eurofins
sites,
• subsequent recommendations to improve
the fire prevention measures,
• risk prevention surveys and subsequent
recommendations,
• training on fire and flammable awareness
provided to many employees in laboratories
worldwide,
• loss prevention guidelines including best
practice controls distributed throughout many
companies,
• fire prevention self-assessment survey to
advance the loss control culture,
• business continuity planning,
• natural catastrophe risk modelling,
• natural hazard assessment embedded in
Real Estate projects,
• property damage and business interruption
insurance.
Accounting, including:
• incorrect recording of business
transactions and financial
misstatement (due to involuntary
errors or fraudulent behaviour of
employees),
• temporary unavailability of the
IT systems for financial
management.
• Financial losses,
• incorrect revenue recognition,
• damage to brand reputation,
• administrative fines,
• increased scrutiny from financial
authorities,
• impairment of intangible assets
resulting from acquisitions that
could significantly reduce
attributable net profit and equity
for a given period,
• disclosure of wrong or
incomplete information with
consequent reputational damage
and liabilities.
• Systematic improvement of Group Policies
including e.g., accounting principles,
financial reporting delegation of authorities,
processes and methods to report ESG
metrics,
• implementation of global processes and
tools facilitating the enforcement of policies
(procurement, accounting, reporting,
treasury),
• implementation of shared service centres to
streamline, standardise and better control
processes and reconciliations,
• all Eurofins legal entities are subject to
annual external statutory audits, performed
mostly by Tier 1 and 2 auditors selected from
a list validated at Group level,
• implementation of internal controls related
to financial reporting and systematic
evaluation of the design and operating
effectiveness of these controls,
• audit quality is reviewed and controlled by
GIAT (Group Internal Audit Team), reported
issues and remediation actions are tracked
and monitored,
• business continuity planning.
Finance, including:
• liquidity risk,
• worsening of Days of Sales
Outstanding, ,
• rising interest rates,
• bank concentration -
counterparty risk,
• foreign exchange risk,
• fraud or mistakes on payment
operations,
• contractors’ financial risk on
major real estate projects.
• Financial losses
• non-availability of necessary
funds to settle commitments when
they fall due,
• increasing investment in working
capital.
• Treasury policies defining rules for cash
management and deposits,
• regular and conservative cash planning,
• bilateral revolving credit facilities,
• incentive system on NWC targets,
• network of NWC Champions to drive
improvement and knowledge sharing,
• predominant use of fixed-rate debt,
• internal controls on payment operations,
• ongoing implementation and roll out of a
Treasury Management System,
• audit of payment operations by GIAT
(Group Internal Audit Team)
• phishing awareness programme,
• construction bond requested in tendering
process for major real estate projects.
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136
Risk Category
Possible Consequences
Main Mitigations
Tax, including:
• non-compliant or late tax
filings,
• local transfer pricing policies
and documentation that are
incomplete, outdated, non-
compliant or not prepared in a
timely manner.
• Tax assessments and fines,
• organisational efforts to deal with
tax litigations,
• increase of scrutiny by tax
authorities,
• reputational impact.
• Tax risk management guidelines providing
to local Finance Directors a list of controls to
be implemented around tax processes,
• trainings and tool for transfer pricing on
intragroup transactions,
• Internal audits on tax compliance.
• Human Capital
Risk Category
Possible Consequences
Main Mitigations
Human Capital, including:
• reduction of the engagement
level among Key Employees
and leaders (development, and
performance),
• loss of GOC representatives
and/or leaders,
• reduction of employer
reputation on social media..
• Reduced ability to recruit
qualified personnel, longer time to
hire, decreasing quality of
candidates,
• failure to retain key employees
and talents,
• lack of continuity in key roles and
consequent loss of valuable
expertise and leadership,
• high attrition rate,
• increase in personnel expenses,
• insufficient diversity among
employees and prospective new
hires, • inadequate sense of well-
being which could have a negative
impact on employee productivity,
• reduction of stakeholder
confidence,
• lack of strategic guidance,
• challenges to transfer know how.
• Onboarding journey for leaders,
• learning and development initiatives,
• IT tools and established processes to
capture upon employee’s professional
aspirations,
• tools to foster internal mobility, and to
increase the number of open leadership
positions filled internally,
• talent pipeline of potential executive
candidates,
• succession planning,
• retention programmes,
• long term incentives plan,
• employer branding initiatives,
• monitoring of social media,
• social media policy,
• KPIs to measure and manage people-
related ESG metrics.
• employment practices liability insurance.
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137
• Information Technology
Risk Category
Possible Consequences
Main Mitigations
Information security
(confidentiality, integrity, and
availability), including:
• cyber-attacks (ransomware,
hackers) with the intent to steal
data or request ransom,
• data confidentiality breach
(maliciously by a Eurofins
insider or caused by a human
error): sensitive or otherwise
confidential data escaping the
organisation infrastructures,
becoming vulnerable to potential
unauthorised disclosure or
malicious use.
IT operation stability,
availability and continuity,
including:
• unavailability of critical IT
system due to IT failure or
damages to IT hardware,
• system instability due to
uncontrolled changes, lack of
testing or other causes.
IT governance, including:
• possible non-compliance with
local IT related laws and
regulation,
• non-optimal software
management and development.
• Business disruption due to
temporary or permanent
unavailability of data or critical IT
systems,
• Eurofins’ or its clients’ intellectual
property is stolen or
compromised,
• financial consequences,
including loss of funds or assets,
customer compensation, legal
costs, forensic and remediation
costs, contractual damages or lost
revenue,
• fines or other actions taken by
authorities, such as data
protection authorities,
• damage to brand reputation.
• unplanned increase of IT
spending,
• delay on IT projects.
• Strategic segmentation of IT infrastructure
and applications, creating discrete networks
to bolster business resilience and limit the
spread of any IT incidents,
• implementation of a robust information
security upgrade programme that
systematically strengthens security across
the whole Eurofins Network of companies,
• operation of a round-the-clock Security
Operations Centre (SOC) tasked with
monitoring and responding to alerts from the
SIEM system, complemented by IDS
deployment, modern EDR and web security
capabilities,
• comprehensive phishing awareness
initiative encompassing regular training
sessions, quarterly simulated phishing
exercises, and regional awareness
campaigns to bolster defence against social
engineering,
• regular cybersecurity training to maintain a
high level of awareness and vigilance across
the workforce,
• continuous global and local IT risk
assessment processes, focusing on
cybersecurity and IT controls, followed by
diligent remediation,
• an Operations Improvement Programme
designed to systematically upgrade IT
infrastructure for greater stability and
performance,
• IT change management and testing
protocols to ensure controlled
implementation of system enhancements,
• physical security measures in critical data
facilities, coupled with consistent verification
of backup protocols to ensure data
recoverability,
• enhancement of the IT Resilience strategy
through a dedicated programme, including
thorough testing of IT systems and network
infrastructure,
• maintenance of an up-to-date inventory of
IT applications to manage the software
lifecycle effectively,
• establishment of KPIs to assess quality of
in-house software development and the
efficacy of IT projects delivery,
• IT continuity and disaster recovery
planning,
• cyber insurance coverage.
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• Compliance
Risk Category
Possible Consequences
Main Mitigations
Non-compliance with laws,
such as accidental or deliberate
acts in breach of laws,
committed by employees or
partners of Eurofins companies,
including: bribery, antitrust
violations, fraud, privacy breach,
tax and social security
violations, sanctions and export
control breaches.
• Investigations by authorities,
• enforcement actions, significant
fines and penalties imposed by
authorities, resulting in financial
losses or damages,
• debarment from certain
territories / activities,
• revocation of licenses or loss of
accreditation,
• exclusion from certain public
tenders and businesses,
• damage to brand reputation and
erosion of stakeholder confidence,
• administrative and penal
litigation,
• personal charges (including
criminal charges) against directors
and employees.
• Eurofins’ Code of Ethics, and compliance
policies such as the Anti-Bribery policy, the
Fair Competition policy, the Equal
Opportunities and Fair Employment policy,
the Privacy policy, the policy on Ethical
Behaviour at Laboratories, and the
Guidelines for Personal Data Protection,
• annual compliance commitments signed by
the authorised signatories of all Eurofins
companies
• systematic and thorough trainings on these
policies to communicate the Group’s integrity
values and to educate employees and
partners,
• whistleblowing programme established
which encourages both employees of
Eurofins’ companies and external parties to
report suspicious situations and facts in a
confidential and secure manner,
• implementation of various systems of
quality assurance in a large portion of
laboratories, designed to ensure consistent
procedures and traceability of results,
• zero-tolerance approach for non-
compliance,
• audit / due diligence procedures,
• strict approval processes to comply with
sanctions and export control regulations.
Non-compliance with
contractual obligations
in contracts with suppliers,
customers, employees and other
third parties resulting in
enforcement claims or damage/
penalty claims,
• unauthorised disclosure /loss
of own/other's Intellectual
Property (IP) or confidential
information,
• non-compliant contract
execution.
• Litigation/arbitration over
enforcement and damages,
• financial losses including
payment of indemnities, liquidated
damages, legal fees and costs,
• diversion of management focus,
• damage to brand reputation,
• decreased demand for Eurofins
services,
• increase in insurance costs.
• Trainings, templates and checklists for
standardised contract development,
• involvement of legal department and legal
advisors in complex or risky contract
matters,
• in identified cases, provisions may be set
aside to cover the risk of non-compliance
with contractual obligations,
• limitations and controls related to the use of
non-standard or exceptional contracts and
clauses,
• confidentiality clauses in employer
agreements,
• professional liability insurance.
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• Environmental, Social & Governance (ESG)
Risk Category
Possible Consequences
Main Mitigations
Environmental Protection,
including:
• accidental contamination of the
environment directly caused by
Eurofins’ operations at a
laboratory, by specialised
companies which dispose of
hazardous materials for Eurofins
(failing to comply with their
contractual and regulatory
obligations), or by Eurofins’
clients in consequence of
analytical errors made by a
Eurofins company (see the risk
category “Quality of analytical
tests”).
• Injury to personnel and third
parties,
• non-compliance with the law,
• liability for resulting damages,
• financial damages such as fines
and cost of cleaning,
• damage to brand reputation,
especially within local
communities,
• the Eurofins brand is possibly
linked to the non-compliant
behaviour of our waste supplier.
• Laboratories select waste management
suppliers that adhere to environmental laws,
• proper procedures in all laboratories and
relevant accreditations,
• environmental liability insurance.
Health and Safety (People
Protection), including:
• accidental work-related injuries
of employees, or fatalities
occurring in the workplace or
during business travels,
• work-related illness.
• People safety: possible injuries
or fatalities,
• litigations or legal/regulatory
enforcement actions,
• loss of accreditation,
• damage to brand reputation.
• Health and Safety policy,
• consolidated monitoring of metrics such as
Total Recordable Incident Rate (TRIR) and
Lost Time Incident Rate (LTIR) to track
progress and drive continuous improvement
initiatives,
• H&S targets assigned to leaders,
• Network of Health and Safety Champions,
raising awareness on H&S topics in the
organisation, sharing experiences, actions,
best practices, tools, and measuring and
monitoring H&S metrics locally.
• workers compensation and employer
liability insurance,
• business travel insurance.
External Partner’s Ethics,
including:
• suppliers which are not
conducting their business
activity in accordance with the
values and principles laid out in
Eurofins’ Code of Ethics.
• Failure to select and prioritise
suppliers with a strong focus on
social, environmental, and
business continuity management,
• Eurofins could be linked to the
unethical behaviour of its
suppliers, which may have direct
consequences on Eurofins’
reputation and brand image.
• CSR awareness among Eurofins’ suppliers,
including the formalised acceptance of the
Eurofins Group Supplier Code of Ethics,
• CSR evaluation for all critical vendors, via
ratings provided by third parties,
• CSR ratings incorporated into supplier
selection, onboarding, and evaluation.
Climate Change – Transition
Risks, including:
• cost of transition to a lower
emission technology,
• increase of price of carbon
(carbon taxes, emission trading
systems, price of carbon credits
and green energy).
• Financial impact, increase of
costs (including energy cost
inflation), early retirement of
assets, capital investments in new
technology,
• organisational efforts to adopt
and deploy new processes.
• Implementation of CO
2
reduction targets for
Eurofins’ leaders, instigating leadership-
driven CO
2
reduction initiatives across all our
businesses,
• progressive transition to renewable energy
and virtual Power Purchase Agreements
(vPPA),
• progressive transition to energy efficient
buildings,
• progressive transition to fleets of electric
cars,
• progressive transition to miniaturised
chemical analysis,
• continuous supplier engagement to reduce
value chain emissions (Scope 3),
• coordination of a global network of CO
2
Champions and dedicated training on CO
2
measurement and reduction opportunities.
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140
Climate Change – Physical
Risks, including:
• increase of very hot days and
heat waves in some regions,
• increasing likelihood and
severity of extreme weather
events such as storms and
floods, directly impacting our
operations.
• Financial impact, such as
investments to adapt operations
and ensure preservation of quality
standards, loss of revenues
resulting from interruption to
operations or supply chain,
material damage to property,
reparation costs,
• increase of energy costs and
CO
2
emissions (affecting
sustainability targets),
• People safety: possible injuries /
fatalities to employees and others,
• reducing availability and
increasing cost of insurance
coverage.
• Natural hazard risk modelling, including
climate change scenario analysis on heat
waves and river flood (see p. 72-74),
• natural hazard assessment embedded in
Real Estate projects,
• business continuity planning,
• property damage and business interruption
insurance.
ESG reporting:
• Poor ESG ratings as a result
of insufficient performance,
• incorrect reporting of ESG
KPIs and CO
2
emissions.
• Reputational damage, leading to
loss of customers,
• legal liabilities and lawsuits from
customers, investors, and other
stakeholders,
• increased scrutiny from
regulatory authorities, resulting in
potential fines and penalties,
• operational costs increase and
resources are diverted away from
core business activities,
• non timely publication of ESG
reports.
• Continuous improvement of internal
processes and methods to report and
manage ESG metrics,
• ESG KPIs monitoring, target setting and
deviation analysis,
• Carbon Footprint Measurement system,
including a global network of CO
2
Champions and trainings on CO
2
measurement,
• enhancing Scope 3 reporting with supplier-
provided data,
• audit of ESG metrics and KPIs by GIAT
(Group Internal Audit Team),
• ESG report is subject to independent
review by leading professional services firm.
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4.5.7 Quality Management
GRI Standard/Disclosure: 2-26, 416-1
Eurofins’ Vision, Mission and Values provide the basic foundation for entities within the Eurofins Network regarding
how they shall do business. It highlights the importance of delivering the highest-quality services to our clients by
providing accurate and on-time results using the most advanced technologies and testing methods.
Eurofins’ commitment to governance best practices is reflected in its Quality Management Guidelines, which are
adhered to across the entire network of laboratories. The guidelines for Quality Management and laboratory
performance are outlined in manuals available to all laboratory employees of Eurofins companies.
The Eurofins Group Code of Ethics, as the central compliance document, provides short yet precise high-level
instructions for every Eurofins Employee. It also outlines how to seek guidance regarding and report breaches of
the principles laid out in the code (whistleblowing).
Eurofins’ strong commitment to compliance, ethical behaviour and customer privacy is confirmed and strengthened
in numerous detailed statements and policies, which further expand on the principles laid out in the Eurofins Group
Code of Ethics:
• The Eurofins Group Policy on Ethical Behaviour at Laboratories (with Examples of Prohibited
Behaviour and Information about Whistleblowing Channels)
• The Eurofins Group Policy on Ethical Behaviour during Audits, Inspections and other Offsite
Operations
• The Eurofins Group Privacy Policy
Quality has always been part of Eurofins’ values and is applied in three general pillars (i) delivering quality in all
our work; providing accurate results on time, (ii) using the best and most appropriate technology and methods, and
(iii) seeking to improve or change our processes for the better.
For example, in our Food and Environmental testing activities, we can observe that disingenuous companies are
constantly finding new ways to outsmart food authenticity tests, and at the same time, agricultural chemicals,
manufacturing processes or sheer human error can lead to new problems. Eurofins has to stay one step ahead,
not only innovating to develop new testing methods but also working with standard setting bodies to constantly
raise the food safety benchmark. By keeping its leading position, Eurofins contributes to the protection of life, not
only the consumers.
Since Eurofins has a decentralised, entrepreneurial culture, each laboratory has developed and maintains its own
Quality Management System managed by a Quality Director where this is required and/or applicable. The
development and implementation of specific Quality Management Systems are triggered by the needs of our
customers to comply with different type of regulations (local or international). Adherence to those regulations and
associated specific standards must be evaluated by independent bodies such as local authorities, local
accreditation bodies, and local and/or international recognition bodies. Going beyond regulatory requirements,
many Eurofins laboratories pursue implementing additional processes and standards to optimise quality
management.
At the global level, ca. 45,500 Eurofins FTE (representing ca. 90% of our total FTE in Operating Entities) are
working in facilities which have been officially recognised by an independent organisation as compliant to specific
standards, reflecting the activities of the laboratories. For example, our laboratories can be accredited against the
ISO/CEI 17025, the ISO 9001, and the ISO 14001 standards among others. In some cases, and in response to
specific customer needs, our laboratories can also be recognised for Good Laboratory Practices or achieve local
recognition by local authorities.
Operating in an environment which is externally accredited is a pillar to ensure that every single Eurofins employee
is committed to quality and customer satisfaction, by applying defined Quality Management Systems.
To ensure that the services delivered to our customers are of the highest quality, the Quality Department of each
laboratory is embedded in business development activities, ensuring that new testing methods and processes are
developed, validated and performed under strict Quality Management rules.
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Beyond the fact that Quality Management is driven by the requirements of relevant regulatory authorities and local
accreditation bodies, to continuously improve Quality Performance, the GSC Quality Food & Environment Testing
organisation established key indicators that measure the performance of each Food and Environment Laboratory.
Outlined below are some of the key indicators / quality metrics followed at Group level for those areas of activities
in order to ensure the highest quality is delivered to each of our clients.
Quality Metric and Data Accuracy Tracking
Eurofins continuously invests in tools, infrastructure and personnel to record and report on quality metrics, as it is
vital that clients and customers can rely on the fact that the analytical test results they receive from Eurofins
companies are accurate and reliable. It is possible to get visibility on the likely accuracy of testing data by using
Proficiency Tests (PTS) schemes. The percentage of outliers in PTS is one of the Quality Metrics collected at most
laboratories active in Food and Environment Testing.
Customer satisfaction is a priority among the Eurofins Network and customer complaints are thoroughly
investigated. Customer complaints are monitored at a National Business Line level to ensure continuous
improvement.
Additionally, and as part of the continuous improvement of our processes, internal non-conformities are an
important Quality Metric which reflect the maturity of Quality Management Systems. With regards to the
competitiveness of our services, the volume of retests is also tracked where available as such information can
trigger method improvements.
These Key Performance Indicators drive our continuous performance and competitiveness improvement.
In addition to those metrics, the GSC Quality Food and Environment Testing team put in place some specific
processes and tests to ensure the highest quality is delivered every single day. In addition to the standard
proficiency testing schemes that each accredited laboratory must adhere to, Eurofins developed its own internal
Proficiency Testing (iPT) schemes. A pool of laboratories has been selected to participate in initial iPT schemes. A
dedicated team defines representative samples for testing, that are reflective of real customer samples (type of
matrix, level of contamination, interfering elements etc.). Those samples are then sent to selected laboratories and
a full analytical report is delivered. Data accuracy is verified using appropriate statistical tools, as is the accuracy
of the information delivered to the clients through the analytical report.
To always improve our Food and Environment testing laboratories, a specific Business Unit was created in 2022
which handles the iPT process. Initially launched to european laboratories, this process starts with the identification
of the most challenging combination of matrices and parameters and then creates samples for testing, spiking the
chosen matrices. The samples are then shipped to the participating laboratories to be tested. Since 2022 the
laboratory testing network participating in iPT has been successfully extended outside of the EU to Brazil, Canada,
Chili, China, New Zealand, Taiwan, The US, Vietnam and India.
In 2024, the iPT team prepared more than 20 rounds of iPT schemes and sent out more than ca. 1700 samples
worldwide. In total, these internal PT schemes represented a total of approximatively 2800 analytical results
provided by the participants in 2024.
To go one-step further, undercover proficiency testing (also called mystery shopping) is also organised in order to
get visibility on the entire customer journey, from the first contact with a Eurofins laboratory, through to result
delivery. This complex exercise allows Eurofins to continuously improve its customer service, fostering satisfaction
among our clients.
Delivering quality every day, whatever the context, is a key priority for Eurofins. To ensure all employees are
dedicated toward quality and always comply with all appropriate standards, some unannounced audits are
organised by a specific team of Eurofins auditors. Eurofins invested in permanent internal auditors qualified to audit
Food and Environment testing, and additionally uses a specific network of external qualified auditors.
These audits are conducted in addition to standard audits the laboratories expect and must pass, such as
accreditation audits and customer audits, among others. With these additional layers of quality assurance Eurofins
believes it is at the forefront of quality assurance practices in the laboratory testing industry. To ensure a
representative picture of the daily quality delivered by our Food and Environment testing laboratories, internal
audits are organised considering different working shifts. Food microbiology testing laboratories have generally a
wide range of opening hours to ensure samples can be quickly analysed and results delivered as fast as possible
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
143
to our customers. In 2024, internal audits have been conducted during different operating hours covering early
morning to late evening and weekends.
In cases of customer complaints, Eurofins strives to provide customers with the quickest and most thorough
answers possible to their questions or queries. To achieve that, in agreement with ISO/IEC 17025 and Eurofins’
Values, the management of complaints and non-conformities in each Business Unit is carried out by the Quality
Manager. Each laboratory has their own system for engaging with customers and registering and handling
complaints and non-conformities. Eurofins requires laboratories to report their KPIs so that performance trends can
be analysed and performance compared with other laboratories active in the same Operation Segments (OS) or
market segments.
Conducting a specific and dedicated root cause analysis is a key element to ensure that appropriate and efficient
actions are taken to offer best-in-class testing services to our customers. As such, specific and mandatory online
trainings have been developed in collaboration with the Eurofins Academy and, as of today, are rolled out to each
Quality Manager worldwide in the Food and Environment Business lines. Those training assignments have also
been extended to technical and management teams (e.g., Business Unit Manager, Team leaders)
Eurofins is a network of entrepreneurs and uses this strength to learn from colleague experiences around the world.
On a monthly basis, an experience sharing call to discuss various quality topics is organised with the Quality
Managers (Local Quality Managers, National Division Quality Managers) of the Food and Environment Testing
laboratories in Europe. These quality discussions help the Quality Managers identify risks and opportunities in their
own scopes, allowing for proactive implementation of appropriate actions. Best practices are shared between
managers as well as technicians. The teams collaborate with the help of the central quality team who, who utilise
the results of benchmarking exercises to share and implement best-in-class processes across Eurofins
laboratories.
Eurofins has also continued its efforts to implement ‘Quality Management Systems’ throughout its laboratories to
ensure the highest level of quality and accuracy in testing provided to customers. With Eurofins forming an integral
part of our customers’ Quality Management, across our Business Lines, quality maintenance and improvement
form a core element of our governance practices. Improving customer engagement has also been a key focus,
with the introduction of various customer satisfaction surveys and a significant increase in the number of
laboratories tracking Net Promotor Scores in 2024. Refer to section 4.5.9 - Product & Service Quality, for additional
information about Net Promotor Score tracking and reporting.
Eurofins Sustainability in Action - Case study
Quality Story PFAS AIE OTM45 – EUROFINS ANALYSES de l’AIR (Saverne)
Based in France, Eurofins Analyses de l'Air is a laboratory
with more than 18 years of expertise, specialied in air
quality testing.The laboratory provides expert testing and
support for air emissions, workplace and ambient air,
indoor air quality, soil gases, and ground dust.
PFAS (Per- and PolyFluoroAlkyl Substances), often
called 'forever chemicals' due to their persistence and
resistance to degradation, are drawing growing concern
for their impact on human health and the environment.
This group of over 12,000 chemicals—widely used for
their water-, grease-, and heat-resistant properties—has
been linked to hormonal disruption, immune system
impairment, and increases risks of certain cancers. In
France, awareness surged following a major pollution
incident in the Lyon area in 2022.
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144
Since 2020, Eurofins Analyses de l'Air has been actively
engaged in research and development on PFAS testing,
accelerating projects to support partners and in
standardisation committee. As part of the regulatory
working groups, Eurofins Analyses de l'Air has bene
involved in drafting the testing framework, such as the XP-
X43-126 standard (based on the U.S. standard OTM-45)
and the legal framework established on October 31, 2024.
Both covering the PFAS analysis in atmospheric emissions
from incineration, co-incineration, and other thermal waste
treatments.
To meet these new regulatory requirements, Eurofins
Analyses de l'Air pursued the official accreditation for PFAS
analysis in atmospheric emissions. In early September
2024, the laboratory became the first accredited laboratory
in France and in even in Europe, reaching this status nearly
10 months ahead of its competitors. Achieving this
accreditation is a testament to the Eurofins team’s
commitment to excellence; it reflects our leadership in
cutting-edge technology and scientific solutions, while
reinforcing our mission to protect public and environment
health.
4.5.8 Information and IT Operation Security
GRI Standard/Disclosure: 3-3
Eurofins’ innovative use of Information Technology (IT) has been pivotal in our laboratories' ability to expedite
sample processing times, enhance cost efficiencies, and securely and swiftly deliver test results to our clients. The
recent years have seen a continuous and relentless effort to strengthen and fortify our IT infrastructure, with
substantial investments made to bolster resilience against the burgeoning threats of cybercrime and to scale up
systems in line with the increasing demand for our services.
The Information Security function at Eurofins, following extensions over the past years, has stabilised and matured
and is focusing on increasing its efficiency and extending its reach to the very few areas of the Eurofins Network it
does not yet cover. Across the world, Eurofins has dedicated security teams focussing on security operations
including extensive detection and response, vulnerability management, penetration tests, cloud security – all
coupled with continuous monitoring and prevention executed through relevant tools, both on device and network
levels.
Additional governance-related security efforts focus on certifications (like ISO27001) and attestations (like SOC2,
which the Eurofins Information Security function obtained in 2024 and will undertake again in 2025) as well as
continuous modernisation and improvement of internal security policies.
The segregation of the entire Eurofins IT infrastructure into distinct networks improves business resilience by
reducing the scope of potential IT incidents. This activity is further strengthened by cybersecurity awareness
trainings and regular local IT audits and red team exercises on cybersecurity. Eurofins is confident that these
initiatives have significantly elevated our monitoring capabilities and systemic resilience. In 2024, a significant effort
was made to not only segregate users, but to also segregate applications, further enhancing IT security. This
activity will continue throughout 2025.
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In the face of emerging challenges, vigilant focus on data protection has never been more important. Recognising
that future threats will likely target data integrity as much as physical IT infrastructure, IT security teams have
enforced stringent controls over data access and sharing across the network of Eurofins companies. Any cross-
entity data sharing is an exceptional event and subject to rigorous scrutiny, ensuring data segregation and
appropriate protection measures are diligently enforced at all times.
Significant and sustained investment in IT and data management systems across the Eurofins Network means the
security of our data, and the separated IT scopes within which it resides, is assured. The IT infrastructure and
business solutions teams not only facilitate laboratory operations but also empower our teams with bespoke IT
applications, developed in-house. Eurofins’ capability to tailor IT solutions specific to our companies needs results
in IT solutions that far surpass solutions that are available off-the-shelf, easing laboratory workflows and equipping
our business leaders with tools for success. Internet-exposed applications used by Eurofins companies are under
constant scrutinous security testing, performed not only by the internal security team, but also by the white-hat
security community via HackerOne platform.
Given the extensive scope of Eurofins’ operations across a diverse IT landscape, Eurofins acknowledges the
challenge of directly quantifying the impact of our comprehensive information security programme. Eurofins focuses
on measurable indicators such as vulnerability management, SOC performance, and perimeter security. For
example, all 26 distinct IT scopes of Eurofins perimeter tracked by Bitsight achieve security scores of at least 700,
with over half scoring 740 or higher. In 2024, Eurofins also improved its Security Scorecard perimeter score to
81/100, a 25-point increase over the year.
External evaluations further validate these efforts. In 2024, CyberVadis assessed over 200 control points, awarding
Eurofins a score of 952/1000, increasing from a score of 817 one year earlier. This recognition underscores the
positive development of Eurofins’ security posture.
The Eurofins Group Code of Ethics, as the central compliance document, provides a short yet precise high-level
statement addressing data protection and privacy. In addition, Eurofins’ strong commitment to customer privacy is
confirmed and strengthened in The Eurofins Group Privacy Policy which further expands on the principles laid
out in the Eurofins Group Code of Ethics.
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4.5.9 Product & Service Quality
GRI Standard/Disclosure: 3-3
Customer Satisfaction and Loyalty
In 2024, Eurofins continued its global Net Promoter Score
®
(NPS) measurement programme for all business lines
serving external customers. Customer focus remains one of Eurofins’ core values and it is deeply ingrained within
the Group’s decentralised network of independent companies. Eurofins companies, guided by their entrepreneurial
business leaders endorse, and integrate NPS measurement into their daily operations.
The widespread adoption of the NPS programme across Eurofins’ independent network of companies underscores
customer-centricity and satisfaction as fundamental Eurofins values. In 2024, NPS measurement across the
network saw record levels, with 97% of Eurofins entities engaging with external customers through an NPS survey.
This reaffirms Eurofins laboratories’ steadfast commitment to actively measuring customer satisfaction on a regular
basis. Use of NPS across the Eurofins Network has steadily increased for four consecutive years since initial NPS
implementation in 2021, demonstrating a 6.65% increase from 2023 and 2.33% to 2024.
Throughout 2024, Eurofins entrepreneurs were empowered to customise NPS measurement tools to best suit their
needs, aligning NPS measurement with both specific business line customer profiles and Eurofins wide NPS
policies. In total Eurofins companies received 191,200 responses from customers yielding an NPS response rate
of 12.68% - an increase of 42.8% compared to 2021. Among these responses, 77.2% of Eurofins customers
indicated satisfaction with Eurofins services (NPS rating >8). The Eurofins Network of companies is proud to
achieve an NPS of 70.9 in 2024 based on the 77.2% satisfied and 6.3% of dissatisfied respondents. With a Eurofins
Network-wide NPS of 70.95, Eurofins laboratories successfully met their 2024 target of a score of 65, reaffirming
our laboratories’ unwavering commitment to customer focus.
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In 2024, many Eurofins laboratories-initiated improvement programmes with the objective of getting greater insight
into customer concerns and devising effective resolutions for dissatisfied customers. With an increasing number of
business lines implementing solutions and processes to respond to customers faster and more accurately every
month, Eurofins entrepreneurs reaffirm their customer focus and strive for continuous improvement.
Looking ahead to 2025, within the dynamic landscape of the international markets Eurofins companies serve,
Eurofins entrepreneurs remain committed to investing in customer focus utilising NPS as the designated
measurement technique. In 2025, as customer demands evolve and market environments change, Eurofins
entrepreneurs will continue to benefit from a global network of NPS measuring best practices and support aimed
at further improving local and global customer satisfaction.
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4.6 Data Tables
4.6.1 Eurofins Data
GRI Standard/Disclosure: 205-2, 404-1
On the path to aligning its sustainability statement with the requirements of the Corporate Sustainability Reporting
Directive (CSRD), Eurofins has adjusted its data tables to incorporate the findings of the Double Materiality
Assessment and work towards KPI aligned with the CSRD. As a first step, some indicators deemed non-material
or not aligned with CSRD compliant disclosures have therefore been removed from below tables. Additionally, we
have added a subset of the material, CSRD aligned KPIs. We have highlighted the data points disclosed for the
first time for 2024 as well as indicated the ESRS section.
GRI
Disclosure
ESRS
Section
New
Disclosure
Unit Coverage Unit 2022 2023 2024
2025
Target
Strategy, business model and value chain
% revenue from products/ services associated with “environmentally sustainable
economic activities” aligned with the EU Taxonomy
203-2 % Revenue 100% % Revenue 14% 14%
% CapEx from products/ services associated with “environmentally sustainable
economic activities” aligned with the EU Taxonomy
203-2 % CapEx 100% % CapEx 11% 14%
% OpEx from products/ services associated with “environmentally sustainable
economic activities” alinged with the EU Taxonomy
203-2 % OpEx 100% % OpEx 15% 16%
Environmental
Climate change
Actions and resources in relation to climate change policies
Achieved Scope 1 & 2 GHG emission reductions (market-based) versus base year
emissions
305-5 E1-03 X tCO2e 100% tCO2e 46.879
Targets related to climate change mitigation and adaptation
Absolute value of Scope 1 & 2 GHG emission reduction target versus base year
emissions (market-based)
305-5 E1-04 X tCO2e 57.277
Percentage of Scope 1 & 2 GHG emission reduction (as of emissions of base year;
market-based)
305-5 E1-04 X % 25,2%
Energy consumption and mix
Total energy consumption from fossil sources 302-1 E1-05 X % FTEs 100% MWh 500.781
Total energy consumption from nuclear sources 302-1 E1-05 X % FTEs 100% MWh 87.814
Percentage of energy consumption from fossil sources of total energy consumption 302-1 E1-05 X % FTEs 100% % 62%
Percentage of energy consumption from nuclear sources of total energy consumption 302-1 E1-05 X % FTEs 100% % 11%
Renewable Energy consumption in MWh 302-1 E1-05 X % FTEs 100% MWh 215.379
Renewable Energy consumption as % of total Energy consumption 302-1 E1-05 X % FTEs 100% % 26,8%
Total energy consumption in MWh 302-1 E1-05 % FTEs 100% MWh 798.313 777.709 803.975
Emission measurements at Group level
Scope 1 emissions in tCO2e 305-1 E1-06 % FTEs 100% tCO2e 65.077 61.455 61.790
Scope 2 emissions in tCO2e (market based) 305-2 E1-06 % FTEs 100% tCO2e 125.818 121.759 118.618
Scope 2 emissions in tCO2e (location based) 305-2 E1-06 % FTEs 100% tCO2e 149.197 152.943 149.493
Scope 3 emissions in tCO2e 305-3 E1-06 % FTEs 100% tCO2e 336.267 306.211 290.440
Gross global greenhouse emissions in metric tons CO2e (market based) 305-4 E1-06 % FTEs 100% tCO2e 527.162 489.424 470.848
Gross global greenhouse emissions in metric tons CO2e (location based) 305-4 E1-06 % FTEs 100% tCO2e 550.541 520.609 501.723
Carbon Intensity per mEUR (market based) 305-4 E1-06 % FTEs 100% tCO2e/mEUR 73,7 71,9 66,8
Carbon Intensity per mEUR (location based) 305-4 E1-06 % FTEs 100% tCO2e/mEUR 77,0 76,5 71,2
Carbon credits retired
not
applicable
E1-07 % FTEs 100% tCO2e 200.000 200.000 200.000
Scope
KPI
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
149
Eurofins Data Tables (cont.)
GRI
Disclosure
ESRS
Section
New
Disclosure
Unit Coverage Unit 2022 2023 2024
2025
Target
Social
Diversity and equity
Employee-related metrics
Percentage of woman - Board of Directors
[2]
2-9 ESRS 2-GOV % HC 100% % Leaders 50% 50% 50%
Percentage of woman - Senior Leadership
(GOC - incl CEO- and Regional Business Line Leaders)
[3]
405-1 S1-09 % HC 100% % Leaders 18% 21% 14%
Percentage of woman employees - National Business Line Leaders and Business Unit
Managers
[3]
405-1 S1-09 % HC 100% % Leaders 30% 34% 36%
Percentage of woman employees - Other leaders
[3],[4]
405-1 S1-09 % HC 100% % Leaders 50% 50% 50%
Percentage of woman employees - All Employees
(incl. all leaders)
[3],[5]
405-1 S1-09 % HC 96% % Employees 55% 57% 57%
People, Health & Safety
Health and Safety
Total number of contractor fatalities at work 403-9 S1-14 % FTEs 100% # Fatalities 0 0 3 0
Total number of employee fatalities at work 403-9 S1-14 % FTEs 100% # Fatalities 0 0 1 0
Percentage of own workforce who are covered by health and safety management
system based on legal requirements and/or recognised standards or guidelines and
which has been internally audited and/or audited or certified by external party
403-8 S1-14 x % FTEs 100% % FTEs 98%
Governance
Honesty, Integrity & Human Rights
Compliance (Ethics, Corruption, Human Rights)
Number of confirmed incidents of corruption or bribery 205-3 G1-04 x % FTEs 100%
Confirmed
incidents
1 0
Amount of fines for violation of anti-corruption and anti- bribery laws 205-3 G1-04 x % FTEs 100% EUR 0 0
Total number of confirmed incidents of discrimination, including harassment, reported
in the reporting period
406-1 S1-17 x % FTEs 100%
Confirmed
incidents
1 2
Total number of complaints filed through channels for people to raise concern 2-25 S1-17 x % FTEs 100% Complaints 45 47
Total amount of fines, penalties, and compensation for damages as a result of the
incidents and complaints disclosed above
2-27 S1-17 x % FTEs 100% EUR 0 0
Number of severe human rights incidents connected to Eurofins' workforce 3-3 S1-17 x % FTEs 100%
Confirmed
incidents
0 0
Total amount of fines, penalties and compensation for damages for the incidents
described above
2-27 S1-17 x % FTEs 100% EUR 0 0
The role of the administrative, management and supervisory bodies
Number of executive members 2-9 ESRS 2-GOV x % HC 100% Member 2 2 2
Number of non-executive members 2-9 ESRS 2-GOV x % HC 100% Member 6 6 6
Percentage of independent board members 2-9 ESRS 2-GOV x % HC 100% % Members 63% 63% 63%
Integration of sustainability-related performance in incentive schemes
Percentage of variable remuneration dependent on sustainability-related targets - GOC - ESRS 2-GOV x % of HC 100%
% of Short-
term Incentive
40% 38%
Compliance-related trainings
% of Employees who completed the Eurofins Code of Ethics training 404-1 Entity Specific
% (HC ELC/total
HC)
96% % Employees 87% 91%
Total number of training hours spent on compliance in the Global Eurofins Learning
Management System (ELC)
404-1 Entity Specific
% (HC ELC/total
HC)
96% Hours 27.225 42.869 111.003
Total number of training hours spent on corruption/bribery (compliance Tier 2) in the
Global Central Eurofins Learning Management System (ELC)
205-2, 404-1 Entity Specific
% (HC ELC/total
HC)
96% Hours 8.129 8.399 27.286
# training hours on corruption/bribery (compliance Tier 2) per assigned HC 205-2, 404-1 Entity Specific
% (HC
completed
course/HC
assigned)
91%
# h/HC
[1]
0,5 0,5 0,5
Total number of training hours spent on Code of Ethics (compliance Tier 1) in the
Global Central Eurofins Learning Management System (ELC)
205-2, 404-1 Entity Specific
% (HC ELC/total
HC)
96% Hours 7.114 7.721 27.400
Scope
KPI
[1] Headcount who completed the compliance course
[2] Based on the information received from Company Secretary
[3] Based on Gender sourced from identity lifecycle management database
[4] Other leaders: Eurofins Employees who have at least one Employee as a direct report
(excluding interns) and who do not belong to any other category of Leaders
(Board of Directors, GOC, Regional Business Line Leaders, National business Line Leaders or
Business Unit Leaders)
[5] Includes apprentices, interns, temporary workers, and self-employed managers. Excludes external consultants.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
150
4.6.2 Global Reporting Initiative (GRI) Disclosures
Statement of use
Eurofins Scientific SE has reported the information cited in this GRI content
index for the period [01/01/2024-31/12/2024] with reference to the GRI
Standards.
GRI 1 used
GRI 1: Foundation 2021
GRI STANDARD
DISCLOSURE
LOCATION
GRI 2: General
Disclosures 2021
2-1 Organizational details
Overview/Page 53,
Corporate Governance Charter of
Eurofins/Page 212
Shareholding Disclosure/Page 238
2-2 Entities included in the organization’s
sustainability reporting
Scope of the Group/Page 302
2-3 Reporting period, frequency and
contact point
Shareholder Information/Page 2,
Sustainability at Eurofins/Page 58
2-4 Restatements of information
N/A
2-5 External assurance
Audit Scrutiny and Coverage/Page 234
2-6 Activities, value chain and other
business relationships
Overview/Page 53,
Safeguarding the Environment through our
Products and Services/Page 71,
Sustainable Procurement and Supply Chain
Management/Page 128
2-7 Employees
Overview/Page 53, Social/Page 103
2-8 Workers who are not employees
Social/Page 103
2-9 Governance structure and
composition
Sustainability Governance/Page 124
Corporate Governance/Page 211
2-10 Nomination and selection of the
highest governance body
The Board of Directors - Composition and
Appointment/Page 213,
Management - Board of Directors/Page 229
2-11 Chair of the highest governance
body
Sustainability Governance/Page 124
2-12 Role of the highest governance
body in overseeing the management of
impacts
Materiality/Page 66,
Sustainability Governance/Page 124,
Corporate Culture/Page 123
Enterprise Risk Management/Page 131
2-13 Delegation of responsibility for
managing impacts
Sustainability Governance/Page 124
2-14 Role of the highest governance
body in sustainability reporting
Sustainability Governance/Page 124,
Enterprise Risk Management/Page 131
2-15 Conflicts of interest
Sustainability Governance/Page 124
2-16 Communication of critical concerns
Honesty, Integrity & Human Rights/Page 129
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
151
GRI STANDARD
DISCLOSURE
LOCATION
2-17 Collective knowledge of the highest
governance body
The Board of Directors - Composition and
Appointment/Page 213,
Management - Board of Directors/Page 229
2-18 Evaluation of the performance of
the highest governance body
The Board of Directors - Composition and
Appointment/Page 213,
Management - Board of Directors/Page 229
2-19 Remuneration policies
Group Remuneration Policy/Page 183
2-20 Process to determine remuneration
Group Remuneration Policy/Page 183,
Board of Directors and Committee
Memberships/Page 231
2-21 Annual total compensation ratio
Group Remuneration Policy/Page 183 and
Note 2.3 “Operating costs, net” and Note 2.4
“Employees”/Page 267
2-22 Statement on sustainable
development strategy
A conversation with our CEO, Dr. Gilles
Martin/Page 51
2-23 Policy commitments
Enterprise Risk Management/Page 131
Vision, Mission and Values/Page 57 and
Honesty, Integrity & Human Rights/Page 129
2-24 Embedding policy commitments
Enterprise Risk Management/Page 131
Vision, Mission and Values/Page 57 and
Honesty, Integrity & Human Rights/Page 129
2-25 Processes to remediate negative
impacts
Financial and Operating Review/Page 34
2-26 Mechanisms for seeking advice and
raising concerns
Quality Management/Page 141,
Honesty, Integrity & Human Rights/Page 129
2-27 Compliance with laws and
regulations
Honesty, Integrity & Human Rights/Page 129
2-28 Membership associations
Overview/Page 53
2-29 Approach to stakeholder
engagement
Materiality/Page 66
2-30 Collective bargaining agreements
Honesty, Integrity & Human Rights/Page 129
GRI 3: Material
Topics 2021
3-1 Process to determine material topics
Materiality/Page 66
3-2 List of material topics
Table of Contents/Page 47,
A conversation with our CEO, Dr. Gilles
Martin/Page 51
Materiality/Page 66
3-3 Management of material topics
Overview/Page 53,
Materiality/Page 66
Information and IT Operation Security/Page
144
Product & Service Quality/Page 146
GRI 201:
Economic
Performance
2016
201-1 Direct economic value generated
and distributed
Consolidated Financial Statements/Page
247
201-2 Financial implications and other
risks and opportunities due to climate
change
Climate Change/Page 79
201-3 Defined benefit plan obligations
and other retirement plans
Note 2.23 “Post-employment benefits”/Page
282
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
152
GRI STANDARD
DISCLOSURE
LOCATION
201-4 Financial assistance received from
government
N/A
GRI 202: Market
Presence 2016
202-1 Ratios of standard entry level
wage by gender compared to local
minimum wage
N/A
202-2 Proportion of senior management
hired from the local community
N/A
GRI 203: Indirect
Economic
Impacts 2016
203-1 Infrastructure investments and
services supported
N/A
203-2 Significant indirect economic
impacts
Safeguarding the Environment through our
Products and Services/ Page 71
GRI 204:
Procurement
Practices 2016
204-1 Proportion of spending on local
suppliers
N/A
GRI 205: Anti-
corruption 2016
205-1 Operations assessed for risks
related to corruption
Honesty, Integrity & Human Rights/Page 129
205-2 Communication and training about
anti-corruption policies and procedures
Honesty, Integrity & Human Rights/Page
129,
Human Capital Development/Page 111
Sustainable Procurement and Supply Chain
Management/Page 128,
Eurofins Data Tables/Page 148
205-3 Confirmed incidents of corruption
and actions taken
Honesty, Integrity & Human Rights/Page 129
GRI 206: Anti-
competitive
Behavior 2016
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly
practices
Honesty, Integrity & Human Rights/Page 129
GRI 207: Tax
2019
207-1 Approach to tax
Risk Factors - Tax Risks section/Page 177
and Honesty, Integrity & Human Rights/Page
129
207-2 Tax governance, control, and risk
management
Risk Factors - Tax Risks section/Page 177
and Honesty, Integrity & Human Rights/Page
129
207-3 Stakeholder engagement and
management of concerns related to tax
Honesty, Integrity & Human Rights/Page 129
207-4 Country-by-country reporting
N/A
GRI 301:
Materials 2016
301-1 Materials used by weight or
volume
N/A
301-2 Recycled input materials used
Resource use and circular economy/Page
101
301-3 Reclaimed products and their
packaging materials
N/A
GRI 302: Energy
2016
302-1 Energy consumption within the
organization
Climate Change/Page 79
302-2 Energy consumption outside of the
organization
Climate Change/Page 79
302-3 Energy intensity
Climate Change/Page 79
302-4 Reduction of energy consumption
Climate Change/Page 79
302-5 Reductions in energy
requirements of products and services
N/A
GRI 303: Water
and Effluents
2018
303-1 Interactions with water as a
shared resource
Resource Use and Circular Economy/Page
101
Water and Marine Resources/Page 99
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
153
GRI STANDARD
DISCLOSURE
LOCATION
303-2 Management of water discharge-
related impacts
Honesty, Integrity & Human Rights/Page 129
Water and Marine Resources/Page 99
303-3 Water withdrawal
Climate Change/Page 79 (Sources not
tracked)
Water and Marine Resources/Page 99
303-4 Water discharge
Climate Change/Page 79 (Destinations not
tracked)
Water and Marine Resources/Page 99
303-5 Water consumption
Climate Change/Page 79
Water and Marine Resources/Page 99
GRI 304:
Biodiversity
2016
304-1 Operational sites owned, leased,
managed in, or adjacent to, protected
areas and areas of high biodiversity
value outside protected areas
Biodiversity & Ecosystems/Page 100
304-2 Significant impacts of activities,
products and services on biodiversity
N/A
304-3 Habitats protected or restored
Resource Use and Circular Economy/Page
101
304-4 IUCN Red List species and
national conservation list species with
habitats in areas affected by operations
N/A
GRI 305:
Emissions 2016
305-1 Direct (Scope 1) GHG emissions
Climate Change/Page 79
305-2 Energy indirect (Scope 2) GHG
emissions
Climate Change/Page 79
305-3 Other indirect (Scope 3) GHG
emissions
Climate Change/Page 79
305-4 GHG emissions intensity
Climate Change/Page 79
305-5 Reduction of GHG emissions
Climate Change/Page 79
305-6 Emissions of ozone-depleting
substances (ODS)
N/A
305-7 Nitrogen oxides (NOx), sulfur
oxides (SOx), and other significant air
emissions
N/A
GRI 306: Waste
2020
306-1 Waste generation and significant
waste-related impacts
N/A
306-2 Management of significant waste-
related impacts
Pollution and Waste Management/Page 97
306-3 Waste generated
N/A
306-4 Waste diverted from disposal
N/A
306-5 Waste directed to disposal
N/A
GRI 308:
Supplier
Environmental
Assessment
2016
308-1 New suppliers that were screened
using environmental criteria
Sustainable Procurement and Supply Chain
Management/Page 128
308-2 Negative environmental impacts in
the supply chain and actions taken
Sustainable Procurement and Supply Chain
Management/Page 128
GRI 401:
Employment
2016
401-1 New employee hires and
employee turnover
Equality Driving Excellence/Page 105
Employment Creation/Page 110
401-2 Benefits provided to full-time
employees that are not provided to
temporary or part-time employees
N/A
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
154
GRI STANDARD
DISCLOSURE
LOCATION
401-3 Parental leave
N/A
GRI 402: Labor/
Management
Relations 2016
402-1 Minimum notice periods regarding
operational changes
Remuneration Report - Other Employment
Conditions - Termination/Page 193
GRI 403:
Occupational
Health and
Safety 2018
403-1 Occupational health and safety
management system
People, Health & Safety/Page 116
403-2 Hazard identification, risk
assessment, and incident investigation
People, Health & Safety/Page 116
403-3 Occupational health services
People, Health & Safety/Page 116
403-4 Worker participation, consultation,
and communication on occupational
health and safety
People, Health & Safety/Page 116
403-5 Worker training on occupational
health and safety
People, Health & Safety/Page 116
403-6 Promotion of worker health
People, Health & Safety/Page 116
403-7 Prevention and mitigation of
occupational health and safety impacts
directly linked by business relationships
People, Health & Safety/Page 116and
Honesty, Integrity & Human Rights/Page 129
403-8 Workers covered by an
occupational health and safety
management system
People, Health & Safety/Page 116
403-9 Work-related injuries
People, Health & Safety/Page 116 (Fatalities
reported publicly, TRIR/LTIR metrics - Given
the decentral nature of the Eurofins
organisation, the Company currently only
has decentralised and non-uniform tracking
of this metric. We are working on centralising
this tracking and intend to disclose this in
future reports).
403-10 Work-related ill health
People, Health & Safety/Page 116 (Fatalities
reported publicly, TRIR/LTIR metrics - Given
the decentral nature of the Eurofins
organisation, the Company currently only
has decentralised and non-uniform tracking
of this metric. We are working on centralising
this tracking and intend to disclose this in
future reports).
GRI 404:
Training and
Education 2016
404-1 Average hours of training per year
per employee
Eurofins Data Tables-Talent
Development/Page 149 (specific training
categories reported centrally)
404-2 Programs for upgrading employee
skills and transition assistance programs
Human Capital Development/Page 111
404-3 Percentage of employees
receiving regular performance and
career development reviews
Human Capital Development/Page 111
GRI 405:
Diversity and
405-1 Diversity of governance bodies
and employees
Equality Driving Excellence/ Page 105
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
155
GRI STANDARD
DISCLOSURE
LOCATION
Equal
Opportunity
2016
405-2 Ratio of basic salary and
remuneration of women to men
N/A
GRI 406: Non-
discrimination
2016
406-1 Incidents of discrimination and
corrective actions taken
Honesty, Integrity & Human Rights/Page 129
GRI 407:
Freedom of
Association and
Collective
Bargaining 2016
407-1 Operations and suppliers in which
the right to freedom of association and
collective bargaining may be at risk
Honesty, Integrity & Human Rights/Page 129
GRI 408: Child
Labor 2016
408-1 Operations and suppliers at
significant risk for incidents of child labor
Honesty, Integrity & Human Rights/Page 129
GRI 409: Forced
or Compulsory
Labor 2016
409-1 Operations and suppliers at
significant risk for incidents of forced or
compulsory labor
Honesty, Integrity & Human Rights/Page 129
GRI 410:
Security
Practices 2016
410-1 Security personnel trained in
human rights policies or procedures
N/A
GRI 411: Rights
of Indigenous
Peoples 2016
411-1 Incidents of violations involving
rights of indigenous peoples
N/A
GRI 413: Local
Communities
2016
413-1 Operations with local community
engagement, impact assessments, and
development programs
Giving Back/Page 119
413-2 Operations with significant actual
and potential negative impacts on local
communities
N/A
GRI 414:
Supplier Social
Assessment
2016
414-1 New suppliers that were screened
using social criteria
Sustainable Procurement and Supply Chain
Management/Page 128
414-2 Negative social impacts in the
supply chain and actions taken
N/A
GRI 415: Public
Policy 2016
415-1 Political contributions
Honesty, Integrity & Human Rights/Page 129
GRI 416:
Customer Health
and Safety 2016
416-1 Assessment of the health and
safety impacts of product and service
categories
Enterprise Risk Management/Page 131 and
Quality Management/Page 141
416-2 Incidents of non-compliance
concerning the health and safety impacts
of products and services
N/A
GRI 417:
Marketing and
Labeling 2016
417-1 Requirements for product and
service information and labeling
N/A
417-2 Incidents of non-compliance
concerning product and service
information and labeling
N/A
417-3 Incidents of non-compliance
concerning marketing communications
N/A
GRI 418:
Customer
Privacy 2016
418-1 Substantiated complaints
concerning breaches of customer privacy
and losses of customer data
There are no complaints concerning
breaches of customer privacy and losses of
customer data since 2019
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
156
4.6.3 Sustainability Accounting Standards Board (SASB) Disclosure
Topics and Accounting Metrics
4.6.4 Aligning to the Task Force on Climate-Related Financial
Disclosures (TCFD) framework
Topic Accounting Metric Category Units Code Section/Page(s)
Description of approach to identifying and addressing data security risks
Discussion
and Analysis
n/a SV-PS-230a.1
Enterprise Risk
Management - Page 131,
Information and IT
Operation Security - Page
144
Data Security
Description of policies and practices relating to collection, usage and retention of customer
information
Discussion
and Analysis
n/a SV-PS-230a.2
Quality Management -
Page 141, Information
and IT Operation Security -
Page 144
(1) Number of data breaches, (2) percentage involving customers' confidential business
information (CBI) or personally identifiable information (PII), (3) number of customers affected.
1
Quantitative
Number, Percentage
(%)
SV-PS-230a.3
Not disclosed
Workforce Diversity
& Engagement
Percentage of gender and racial/ethnic group representation for (1) executive management and
(2) all other employees
2
Quantitative
Percentage (%) SV-PS-330a.1
Equality Driving Excellence
- Page 105
(1) Voluntary and (2) involuntary turnover rate for employees Quantitative Rate SV-PS-330a.2 Not disclosed
Employee engagement as a percentage
3
Quantitative Percentage (%) SV-PS-330a.3 Not disclosed
Professional
Integrity
Description of approach to ensuring professional integrity
4
Discussion
and Analysis
n/a SV-PS-510a.1
Honestry, Integrity and
Human Rights - Page 129;
Quality Management -
Page 141
Total amount of monetary losses as a result of legal proceedings associated with professional
integrity
Quantitative
Reporting currency SV-PS-510a.2 Refer to Note (a)
Notes:
(a) At Group level (incl. Group Service Centres, Real Estate, holdings other) - 0
1 Note to SV-PS-230a.3 – Disclosure shall include a description of corrective actions implemented in response to data breaches
2 Note to SV-PS-330a.1 – The entity shall describe its policies and programs for fostering equitable employee representation across its global operations.
3 Note to SV-PS-330a.3 – Disclosure shall include a description of the methodology employed.
4 Note to SV-PS-510a.2 – The entity shall briefly describe the nature, context, and corrective actions taken as a result of the monetary losses.
Topic Recommended Disclosures Section/Page(s)
Governance Describe the board's oversight on climate-related risks and opportunities
Refer to Climate Change section/Board's
oversight of climate-related risks and
opportunities chapter, Page 79
Describe management's role in assessing and managing climate-related risks and opportunities
Refer to Climate Change section/Board's
oversight of climate-related risks and
opportunities chapter, Page 79
Strategy
Describe the climate-related risks and opportunities the organisation has identified over the short,
medium, and long term
Refer to Climate Change section/Scenario
Analysis chapter, Page 79
Describe the impact of climate related risks and opportunities on the organisation's businesses,
strategy and financial planning
Refer to Climate Change section/Scenario
Analysis chapter, Page 79
Describe the resilience of the organisation's strategy, taking into consideration different climate
related scenarios, including a 2 degree C or lower scenario
Refer to Climate Change section/Scenario
Analysis chapter, Page 79
Risk Management Describe the organisation's processes for identifying and assessing climate-related risks.
Refer to Climate Change
section/Organisational process and
management's role in assessing and
managing climate-related risks chapter,
Page 79
Describe the organisation's processes for managing climate related risks.
Refer to Climate Change
section/Organisational process and
management's role in assessing and
managing climate-related risks chapter,
Page 79
Describe how processes for identifying, assessing, and managing climate-related risks are
integrated into the organisation's overall management.
Refer to Climate Change
section/Organisational process and
management's role in assessing and
managing climate-related risks chapter,
Page 79
Metrics and Targets
Disclose the metrics used by the organisation to assess climate-related risks and opportunities in
line with its strategy and risk management process.
Refer to Eurofins Data tables/Flood and
Temperature Risk KPIs, Page 148
Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the
related risks.
Refer to Climate Change section/Scenario
Analysis chapter & Carbon neutrality
chapter, Page 79; Eurofins Data tables
(Scope1,2,3 emissions KPI), Page 148
Describe the targets used by the organisation to manage climate-related risks and opportunities
and performance against targets.
Not reported/ To Be Determined
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
157
4.6.5 Eurofins EU Taxonomy additional information
Additional information related to activities concerning nuclear energy and fossil gas.
Row
Nuclear
energy
related
activities
1.
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process heat,
including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available
technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.
NO
Fossil
gas
related
activities
4.
The
undertaking
carries
out,
funds
or
has
exposures
to
construction
or
operation
of electricity generation facilities that produce electricity using fossil gaseous
fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment,
and operation of combined heat/cool and power generation facilities using fossil
gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction, refurbishment
and
operation of heat generation facilities that produce heat/cool using fossil gaseous
fuels.
NO
Taxonomy-aligned
economic
activities
(denominator)
Row
Economic activities
Amount and proportion (the information is to be presented in
monetary amounts and as percentages)
CCM + CCA
Climate
change
mitigation
(CCM)
Climate
change
adaptation
(CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
158
2.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
3.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
4.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
5.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
6.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
7.
Amount and proportion of other
taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in
the denominator of the applicable KPI
- 0%
- 0%
- 0%
8.
Total
applicable
KPI
- 0%
- 0%
- 0%
Taxonomy-aligned
economic
activities
(numerator)
Row
Economic activities
Amount and proportion (the information is to be presented in
monetary amounts and as percentages)
(CCM+CCA)
Climate
change
mitigation
Climate
change
adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
- 0%
- 0%
- 0%
Taxonomy-aligned
economic
activities
(numerator)
Row
Economic activities
Amount and proportion (the information is to be presented in
monetary amounts and as percentages)
(CCM+CCA)
Climate
change
mitigation
Climate
change
adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
- 0%
- 0%
- 0%
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
159
2.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
- 0%
- 0%
- 0%
3.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
- 0%
- 0%
- 0%
4.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
- 0%
- 0%
- 0%
5.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
- 0%
- 0%
- 0%
6.
Amount and proportion of taxonomy-
aligned economic activity referred to in
Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the
numerator of the applicable KPI
- 0%
- 0%
- 0%
7.
Amount and proportion of other
taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in
the numerator of the applicable KPI
- 0%
- 0%
- 0%
8.
Total amount and proportion of
taxonomy-aligned economic
activities in the numerator of the
applicable KPI
-
0%
- 0%
- 0%
Taxonomy-eligible
but
not
taxonomy-aligned
economic
activities
Row
Economic activities
Proportion
(the
information
is
to
be
presented
in
monetary
amounts
and
as percentages)
(CCM+CCA)
Climate
change
mitigation
Climate
change
adaptation
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-
eligible but not taxonomy-aligned
economic activity referred to in Section
4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
2.
Amount and proportion of taxonomy-
eligible but not taxonomy-aligned
economic activity referred to in Section
4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
160
3.
Amount and proportion of taxonomy-
eligible but not taxonomy-aligned
economic activity referred to in Section
4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
4.
Amount and proportion of taxonomy-
eligible but not taxonomy-aligned
economic activity referred to in Section
4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
5.
Amount and proportion of taxonomy-
eligible but not taxonomy-aligned
economic activity referred to in Section
4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
6.
Amount and proportion of taxonomy-
eligible but not taxonomy-aligned
economic activity referred to in Section
4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
7.
Amount and proportion of other
taxonomy-eligible but not
taxonomy-aligned economic
activities not referred to in rows 1 to
6 above in the denominator of the
applicable KPI
- 0%
- 0%
- 0%
8.
Total amount and proportion of
taxonomy eligible but not taxonomy-
aligned economic activities in the
denominator of the applicable KPI
- 0%
- 0%
- 0%
ENVIRONMENTAL, SOCIAL AND GOVERNANCE
161
Taxonomy
non-eligible
economic
activities
Row
Economic activities
Amount
Percentage
1.
Amount and proportion of economic activity referred to in row 1
of
Template 1 that is taxonomy-non-eligible in accordance with
Section 4.26 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
- 0%
- 0%
2.
Amount and proportion of economic activity referred to in row 2
of
Template 1 that is taxonomy-non-eligible in accordance with
Section 4.27 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
- 0%
- 0%
3.
Amount and proportion of economic activity referred to in row 3
of
Template 1 that is taxonomy-non-eligible in accordance with
Section 4.28 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
- 0%
- 0%
4.
Amount and proportion of economic activity referred to in row 4
of
Template 1 that is taxonomy-non-eligible in accordance with
Section 4.29 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
- 0%
- 0%
5.
Amount and proportion of economic activity referred to in row 5
of
Template 1 that is taxonomy-non-eligible in accordance with
Section 4.30 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
- 0%
- 0%
6.
Amount and proportion of economic activity referred to in row 6
of
Template 1 that is taxonomy-non-eligible in accordance with
Section 4.31 of Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable KPI
- 0%
- 0%
7.
Amount and proportion of other taxonomy-non-eligible
economic activities not referred to in rows 1 to 6 above in the
denominator of the applicable KPI
- 0%
- 0%
8.
Total amount and proportion of taxonomy-non-eligible
economic activities in the denominator of the applicable KPI
’
- 0%
- 0%
RISK FACTORS
162
5 Risk Factors
Eurofins’ decisions, plans and objectives for the future take into consideration the risks that its management
reasonably expect the business to face.
The risk factors described herein are based on an analysis and evaluation of the existing and reasonably expected
future operating environment of the business. Eurofins and its subsidiaries (hereinafter, the “Group”) may be
significantly affected by risks that cannot be reasonably foreseen or considered material at the time of this annual
report. Certain risks, whether foreseen or unforeseen, may also arise from external factors beyond Eurofins’ control.
Measures described herein aim to manage or mitigate risks to the extent reasonably possible. They may or may
not be effective in any or all circumstances.
Certain specific risks are also mentioned in the notes to the consolidated financial statements, or in the Enterprise
Risk Management and the Climate Change sections of the Environment, Social and Governance report.
5.1 Commercial Risks
5.1.1 Changes in the Market
Eurofins operates mainly in the food, pharmaceutical, environmental and clinical testing markets. The food testing
market is relatively less cyclical and less exposed to the full impact of economic downturns than many other sectors,
due to the constant consumer and governmental demand for safe food products, especially in affluent and
developed countries. The pharmaceutical testing business is supported by the growth in pharmaceutical product
development and use, as well as the search for new and more effective drugs within the framework of new drug
development programmes. The environmental testing market is driven by regulations that are enforced in an
increasing number of countries around the world. The clinical testing market is principally driven by demographics
as well as medical, technological and scientific innovation.
Nevertheless, the global markets are currently facing a higher level of uncertainty brought (i) by the conflicts in
Ukraine, the Middle East and other areas, and (ii) geopolitical uncertainties and macroeconomic headwinds that
may result in inflationary pressures, high interest rates, deglobalisation and other factors. A potential economic
crisis impacting the global economy may follow these developments. Such slower growth and any consequent
funding squeezes may negatively impact some of Eurofins’ customers, or governments may be forced to suspend
or revoke regulations and reduce testing frequency to ease their financial burden, which would directly impact the
testing industry. If this were to be the case, the impact on Eurofins’ net worth, financial position and operating
results could be severe, including the remote possibility of a cessation of the business.
The ongoing conflicts in Ukraine and the Middle East, and any possible escalations that may follow, can cause
disruption to Eurofins’ operations, directly or indirectly through its customers or its supply chain, and restrict the
ability to do business in existing and/or target markets. Increases in prices for energy and raw materials fuelled by
these conflicts could expose Eurofins and its commercial partners to significant shifts in values, business
interruption risks, and supply chain problems.
In the longer term, a protracted conflict in Ukraine and/or the Middle East could have a profound effect on the
commodity markets. For example, as Russia and Ukraine produce a significant portion of the world’s wheat supply
as well as corn and sunflower oil exports, there is a potential for food stability issues for countries, including regions
which rely on imports of these commodities. As a result, scarcity of commodities may impact some of our customers
and suppliers and, indirectly, Eurofins’ operations. Furthermore, the conflicts in Ukraine and the Middle East may
also affect global energy markets, in particular supplies of oil and gas.
5.1.2 General Regulatory, Political, Economic and Public Health Risks
Many of the services which Eurofins provides, and the conduct of such services, are subject to, or influenced by,
laws and regulations that impose strict rules on the Group’s business or the businesses of the Group’s customers.
RISK FACTORS
163
Changes in government officials and new policies they enact may (i) adversely affect the supply of, demand for,
and/or prices of the Group’s services; (ii) restrict Eurofins’ ability to do business in its existing and target markets;
and (iii) adversely affect the Group’s revenues and operating results. Eurofins’ operating results could be affected
by changes in governmental policies and regulations, including monetary, fiscal and environmental policies, as well
as other activities of governments, agencies, and similar organisations. These risks include, but are not limited to,
changes in local economic or political conditions (e.g., Brexit, trade tariffs), changes in local labour conditions and
regulations, reduction in the protection of intellectual property rights, changes in the regulatory or legal environment,
restrictions on currency exchange activities, currency exchange fluctuations, and adverse tax, administrative or
judicial outcomes. International risks and uncertainties, including changing social and economic conditions,
terrorism, political instability and war, natural disasters, as well as epidemics or pandemics, could limit Eurofins’
ability to transact business in individual or multiple markets, and adversely affect Eurofins’ revenues and operating
results.
In addition, changes in government policies and regulations that may impact Eurofins’ customers could also have
unforeseen impacts on Eurofins’ businesses. For example, Eurofins’ customers in the food and pharmaceutical
industries are dependent on the oversight of the U.S. Food and Drug Administration and corresponding
international regulators, while Eurofins’ customers for environmental testing are dependent on the oversight of the
U.S. Environmental Protection Agency and its counterparts in other countries and regions. Any changes at these
regulators in terms of administration, enforcement, delays, inconsistencies, lapses or failures, including, but not
limited to, insufficient staffing levels, expertise, or resources, could potentially affect the demand of Eurofins
customers for its testing services. Furthermore, governmental policies such as tariffs, penalties, restrictions and
sanctions could impact the volume of testing services demanded as well as the operational footprints of Eurofins’
clients.
Significant events with global consequences, like the COVID-19 pandemic during the years 2020-2022, could
adversely impact the Group’s business, operations and financial condition, by, for instance, affecting the supply
chain of the Group and/or the Group’s clients. This impact will depend on future developments as well as the
duration, extent and severity of such events, which are highly uncertain and cannot be predicted. Eurofins'
laboratories regularly update their business continuity plans to attempt to mitigate the effects of potential supply
chain risks, including interferences from events such as pandemics, to operations. However, there can be no
assurance that any precautionary activities would be effective in such events.
Eurofins also has businesses where regulatory supervision extends not only to the analytical process, but also to
fee structures and/or schedules. This is particularly relevant in the clinical diagnostics market, where third-party
payers, such as government/healthcare agencies and insurers, have increased their efforts to control the cost,
utilisation and delivery of healthcare services. Reductions in the reimbursement from these third-party payers,
changes in policy regarding coverage of tests or other requirements for payment (such as prior authorisation from
a physician, the payer or qualified practitioner’s signature on test requisitions) may have a material adverse impact
on Eurofins’ business.
5.1.3 Service-Specific Regulatory Risk
Specific Group services are subject to stringent legal and regulatory requirements governing their activities, and
failure to comply with these requirements may result in Eurofins or its subsidiaries facing substantial fines and
penalties. In particular, the Group’s medical diagnostic business is subject to extensive and developing healthcare
laws and regulations in some of the jurisdictions in which the Group is active, especially in the United States (at
both federal and state level) and in Europe. While Eurofins seeks to conduct its medical diagnostic business in
compliance with all applicable laws regulating such business, many of the rules applicable to such business
(especially in the U.S. and France) can be vague or indefinite and have not always been fully or partly interpreted,
notably in respect of the following aspects of the business:
• billing and reimbursement of clinical testing;
• certification or licence of clinical laboratories;
• anti-self-referral and anti-kickback laws and regulations;
• laws and regulations administered by the U.S. Food and Drug Administration (“FDA");
• the corporate practice of medicine;
• operational, personnel and quality requirements intended to ensure that clinical testing services are
accurate, reliable and timely;
• physician fee splitting;
• relationships with physicians and hospitals;
• safety and health of laboratory employees;
• protection of patient data;
RISK FACTORS
164
• handling, transportation and disposal of medical specimens, infectious and hazardous waste and
radioactive materials; and
• the control of laboratories by medical “biologist” practitioners in France.
These laws and regulations applicable to Eurofins’ activities may be interpreted or applied by a prosecutorial,
regulatory or judicial authority in a manner that could require Eurofins to make changes to its operations, including
to pricing and/or billing practices. If Eurofins fails to comply with applicable laws and regulations or to maintain,
renew or obtain necessary permits, licenses and approvals required for the operation of its medical diagnostic and
other businesses, Eurofins could suffer civil and criminal penalties, including fines, financial claims, exclusion from
participation in governmental healthcare programmes, and the loss of such licenses, certificates and authorisations.
If any of these scenarios were to occur, Eurofins’ reputation could be damaged and important business
relationships with third parties could be adversely affected.
5.1.4 Risks of Investigations and Related Litigation
Some of Eurofins’ businesses may, from time to time, receive requests for information from governmental
authorities (and occasionally subpoenas in the U.S.). Regardless of merit or eventual outcome, these types of
investigations and related litigation can result in:
• diversion of management time and attention;
• expenditure of large amounts of cash on legal fees, costs, and payment of damages;
• limitations to Eurofins’ ability to continue some of its operations;
• enforcement actions, fines and penalties, or the assertion of private litigation claims and damages;
• decreased demand for services; and/or
• damage to reputation.
For example, several companies in the cardiac biomarker laboratory services business, including the Group’s
Boston Heart Diagnostics (“Boston Heart”) subsidiary, have been cooperating with investigations on alleged
incentives to physicians in connection with blood testing services conducted by the U.S. Department of Health and
Human Services and the Office of Inspector General (the “OIG”), in conjunction with the U.S. Department of Justice.
On 26 November 2019, Boston Heart and the U.S. Department of Justice reached an agreement whereby, under
the terms of this agreement, Boston Heart, without admitting liability, agreed to pay a civil monetary settlement of
$26.7m to close all related investigations and resolve all civil claims available to the U.S. government under the
Federal False Claims Act. Importantly, there were no claims that individual patients were harmed as a result of the
alleged conduct.
Under its new management team, Boston Heart has successfully adopted and implemented a highly functional and
robust corporate compliance programme to mitigate such risks in the future. For example, in 2022, after a thorough
compliance investigation, Boston Heart made a self-disclosure under the OIG’s Self Disclosure Protocol for
possible violations of the Anti-Kickback Statute. The matter was resolved in 2023 in a settlement agreement with
the OIG. Subsequently, Boston Heart took additional remedial measures to avoid future compliance issues.
In the U.S., the Group is subject from time to time to qui tam claims brought forward by (former) employees or other
“whistleblowers”.
The U.S. government and insurance companies are constantly strengthening their scrutiny and enforcement efforts
in relation to perceived healthcare fraud. Legislative provisions relating to healthcare fraud and abuse provide
government enforcement personnel with substantially increased funding and powers to pursue suspected cases of
fraud and abuse and impose penalties. In addition, the U.S. government has substantial leverage in negotiating
settlements, since the amount of potential damages far exceeds the rates at which the Group is reimbursed for its
services, and the government may exclude a non-compliant provider from participation in the Medicare and
Medicaid programmes.
Although Eurofins believes that Group Companies are in compliance, in all material respects, with any laws and
regulations applicable to the medical diagnostic services in the U.S. and other countries of operation, there can be
no assurance that a regulatory agency or court would not reach a different conclusion. Moreover, even when an
investigation is resolved favourably, the process may be time-consuming and the legal costs and diversion of
management focus may be extensive. Insurance companies covering healthcare costs may also refuse payments
to companies of the Group and launch or threaten to launch legal actions for alleged violation of laws or their
policies.
Changes in applicable laws and regulations with respect to Eurofins’ medical diagnostic business and other
services may result in a restraint of existing practices or additional costs and delay, and/or withdrawal from or
RISK FACTORS
165
reconsideration of Eurofins’ activities. Such changes may also require companies of the Group to modify their
business objectives.
Following a criminal investigation by the French government, a responsible dairy producer was indicted on 16
February 2023 for milk contamination at one of their plants. In this context, the dairy producer has filed together
with some subsidiaries a civil claim against two subsidiaries of Eurofins in France, claiming significant damage. On
2 November 2023, the Paris Court of Appeal rejected the claim from thirteen of the dairy producer’s subsidiaries
which reduces the initial claim substantially. We note that the vast majority of the outstanding claim is insured by
civil liability insurance. The claim remains at a preliminary stage of discovery awaiting an assessment report by
Court appointed experts, which is expected to be finalised by the end of 2025. The two impacted entities will
continue to defend their position that the civil claim filed against them has no merit and they bear no liability in this
matter.
5.1.5 Regulatory Approval, Accreditation and Professional Licensing
Risks
Eurofins is required to obtain and hold permits, licenses and other regulatory approvals from numerous
governmental bodies in order to comply with operating and security standards imposed by such bodies. Failure to
maintain or renew necessary permits, licenses or approvals, or to comply with required standards, could have an
adverse effect on Eurofins’ results, operations and/or financial position. Customers of the Group may require
evidence of various professional licensing and accreditation as part of their selection process to appoint a provider
of bioanalytical services, while various governmental and regulatory authorities may mandate certain accreditations
and professional licensing in connection with the performance of various services, especially in relation to the
medical diagnostics market. Although Eurofins believes its operations comply with all material accreditation and
professional licensing requirements, there can be no assurance that it will always be able to obtain the
accreditations and professional licenses necessary or desirable for its business in each jurisdiction in which it
operates or seeks to operate. A material delay in obtaining, the failure to obtain, or the withdrawal or revocation of
licenses, approvals or other authorisations could have a material adverse effect on individual operations within the
Group or, more broadly, a negative effect on the Group’s overall operations.
5.1.6 Deregulation Risk
Regulatory or lobbying efforts to deregulate, limit or prohibit the disclosure of information related to the various
bioanalytical testing offered, or that may be offered, by Eurofins may reduce the demand for Eurofins’ services. For
example, in the U.S., various groups oppose mandatory and/or voluntary labelling of genetically modified (GMO)
food products. Likewise, various groups and governments have opposed mandatory and/or voluntary labelling of
the country of origin for assorted food products, including those pursuant to international trade agreements.
Although Eurofins deems it to be unlikely, a material relaxation of certain regulations or a prohibition on certain
types of disclosure could have a negative impact on the demand for, or growth of, some of Eurofins’ services.
Likewise, Eurofins’ toxicology testing businesses, which currently constitute a very small part of the Group’s overall
business, could be negatively affected by a ban on or limitations to this type of testing in specific jurisdictions or by
other successful actions taken by groups opposed to such testing. Changes in regulations that, for example,
streamline procedures or relax approval standards with respect to pharmaceutical or agrochemical products could
reduce the need for Eurofins’ pharmaceutical or agroscience services. If companies regulated by the FDA, the U.S.
Environmental Protection Agency (EPA), and other national regulatory authorities in jurisdictions where Eurofins
operates were subject to such deregulation, there may be fewer business opportunities and Eurofins’ revenues
could decrease, possibly materially. Despite the foregoing and similar actions, Eurofins believes the current trend
of increasing demand for verification and security may likely lead to more stringent regulation and disclosure
requirements with respect to products subject to bioanalytical testing.
5.1.7 Customer and Credit Risk
The clients of Eurofins vary in size and location. They range from large global companies (e.g., global food and
beverage producers or retailers for food and feed testing activities; global pharmaceutical companies for
BioPharma testing activities; consulting and sampling companies for environmental testing activities) to small,
independent companies.
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166
Eurofins’ performance and value are influenced by many stakeholders, including employees, customers, suppliers
and strategic partners. To minimise risk and exposure, Eurofins does not rely on a single customer or supplier
contract. Eurofins is currently not dependent on any single supplier or individual customer. Nonetheless, whilst the
Eurofins Group is not dependent on any one external entity, certain subsidiaries may rely more heavily on one
client or supplier, or on a small group of clients or suppliers, relative to the size of those subsidiaries. Eurofins, as
a whole, endeavours not to be dependent on any single customer. The Group’s largest customer represents less
than 2% of the Group’s consolidated revenue and the top 10 customers of the Group together represent less than
10%.
The majority of contracts concluded with customers can be terminated by Eurofins upon short notice. Conversely,
customers may terminate or delay contracts with Eurofins companies for a variety of reasons. The loss, reduction
in scope, or delay of a significant contract or of multiple contracts could adversely affect Eurofins’ business,
although contracts frequently entitle Eurofins to receive the costs of winding down the terminated projects, as well
as all fees earned by Eurofins up to the time of termination. Some contracts also entitle Eurofins to a termination
fee. Eurofins believes its customer base to be diverse. Furthermore, based on the general credit profile and quality
of the Group’s customers, Eurofins believes the risk of bad debts or insolvency of its customers to be generally
low, particularly as Eurofins periodically reviews its customer accounts and considers the level of doubtful accounts
and bad debts to be acceptable. However, severe or long-lasting adverse changes in the global economy could
have an adverse effect on Eurofins’ customers and, in turn, increase the Group’s credit risk or decrease the demand
for its services.
5.1.8 Contractor and Supplier Risks
Successful delivery of Eurofins’ services to its customers is dependent on complex technologies utilising equipment
and materials from multiple suppliers. Failure to deliver services may lead to a reduction in Eurofins’ expected
revenue and could impact the Group’s credibility among both existing and potential customers. Therefore, stability
in the business strategies of Eurofins’ suppliers is also important to the successful operation of Eurofins.
The Group utilises certain third-party contractors, vendors, and suppliers in the ordinary course of its business.
Eurofins subcontracts to individual laboratories on an ad hoc basis for specific technical know-how or services to
address production capacity demands/limitations or for other reasons related to specific applications or services.
The main suppliers to the business are in the following categories: laboratory equipment, laboratory consumables
(these first two often overlap), Information Technology (IT), and logistics. In each category, the Group utilises
multiple suppliers and does not believe it is dependent on any one major supplier.
The Group believes there are currently additional available subcontractors, vendors, and suppliers for all of its
subcontracted service needs, laboratory equipment and consumables supply needs, and contracted IT needs.
However, a full range of subcontract services, suppliers, and vendors may not be locally available in all of the
Group’s markets, and local disruptions could adversely affect its operations for a limited period of time. The Group
seeks to minimise its subcontractor, vendor, and supplier risk through a professional sourcing and contracting
process and in-house production capacity for some critical items. During the sourcing process, the Group reviews
the risk profile of its major vendors and assesses their services. Despite these initiatives, plans, and procedures,
such measures may not be adequate to prevent business disruptions and price increases in every instance. Such
measures also may not adequately reduce Eurofins’ dependence on certain suppliers. In addition, Eurofins is
subject to various risks and potential liability in the case of errors by its subcontractors.
5.1.9 Market Expansion, Establishment of New Companies and
Business Segments and Internationalisation
Eurofins bases a large part of its future growth on expected penetration of new regional markets. Even though
Eurofins has been able to accumulate extensive experience in doing business internationally in the past and already
has contacts in the various target regions identified for its international growth strategy, the risks in executing the
Group’s business strategy in new markets could lead to delay or even failure in the implementation of Eurofins’
international growth strategy, attempts at market development, and entry into new markets. Such failure could have
a material adverse effect on Eurofins’ net worth, financial position, and operating results.
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167
5.1.10 Expansion and Acquisition Risks
Part of Eurofins’ business strategy is to acquire companies, new laboratories, and new technologies in order to
obtain access to complementary technologies and to expand the Group's market position in Europe, North America,
Asia, and other parts of the world. Eurofins’ business has experienced substantial expansion in the past and such
expansion, and any future expansion, could strain the Group’s operational, human, and financial resources if not
properly managed. In order to manage expansion, Eurofins must:
• continue to improve operating, administrative and information systems;
• accurately predict future personnel and resource needs to meet customer commitments;
• track the progress of ongoing client projects; and
• attract and retain qualified management, sales, professional, scientific and technical operating personnel.
If Eurofins does not take these actions and is not able to manage the expansion of its business, such expansion
may be less successful than anticipated. Eurofins may be required to allocate existing or future resources to the
expanded business that, without the expansion, the Group would have otherwise allocated to another part of its
business.
Some of the companies acquired by Eurofins may not develop as planned, may breach agreements with clients or
regulatory or accounting rules, and may even ultimately fail. This could cause major financial losses and lead to
substantial write-offs for Eurofins.
If Eurofins is unable to successfully execute its acquisition strategies and successfully integrate acquired
businesses, its business, results of operations, and financial position could be adversely impacted. Historically,
Eurofins’ growth strategy has been based, in part, on its ability to acquire existing businesses, services or
technologies. The main expansion and acquisition challenges of Eurofins are to:
• identify suitable businesses or technologies to buy;
• successfully perform business diligence and identify all material risks associated with any acquisition;
• complete the purchase of any such businesses or technologies on terms acceptable to Eurofins;
• successfully integrate the operations of acquired businesses into the Group;
• obtain necessary finance for an acquisition on commercially acceptable terms; and
• retain key personnel and customers of acquired businesses.
Eurofins generally competes with other potential buyers for the acquisition of businesses and technology. Such
competition may result in fewer opportunities to purchase companies that are for sale. It may also result in higher
purchase prices for the businesses that Eurofins is looking to purchase. Eurofins may also spend time and money
investigating and negotiating with potential acquisition targets but not complete the transaction. Any future or past
acquisition could involve other risks, including liability risks and reputational damage to the Group as a result of
unprofessional or lower quality business practices of acquired operations, additional liabilities and expenses,
issuances of potentially dilutive securities or interest-bearing debt, transaction costs, and diversion of
management's attention from other business concerns.
From time to time, Eurofins may enter into contingent agreements such as an earn-out agreement with the sellers
of acquired companies, for which calculations are typically based on the fulfilment of certain conditions by a pre-
determined date. Such agreements may lead to disputes or litigation. It cannot be excluded that in the future one
or more of these disputes could increase costs over those provisioned in the Group accounts. For more information
on such risks, please see the notes to the 2024 consolidated financial statements (note 2.22 “Amounts due for
business acquisitions”).
5.1.11 Competition
The industries in which the Eurofins Group of companies operate are highly competitive. Eurofins often competes
for business not only with other independent bioanalytic companies, but also with the internal analytics departments
of some of its customers or of governments. The industry is highly fragmented, with numerous smaller specialised
companies and a handful of full-service companies with global capabilities similar to Eurofins.
Increased competition might lead to competition on price and other forms of competition that might adversely affect
operating results. As a result of competitive pressures, the industry has experienced consolidation in recent years
and Eurofins expects this trend to continue and result in more competition among significant companies in terms
of both customers and acquisition candidates. Bioanalytical testing companies generally compete on:
• regulatory compliance record;
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• reputation for on-time quality performance;
• quality systems;
• previous experience;
• medical and scientific expertise in specific testing and diagnostic areas;
• scope of services;
• quality of data and related services;
• financial viability;
• database management;
• statistical and regulatory services;
• ability to recruit scientists and other personnel;
• ability to integrate information technology with systems to optimise research efficiency;
• accreditation and quality of facilities;
• international presence with strategically located facilities; and
• price.
Eurofins is confident in its know-how and the expertise accumulated by its scientific teams, in particular its database
of methods and test results. Nevertheless, there is no certainty that it will have the necessary resources to
successfully deal with changes in the market, a process of consolidation or the entry of new competitors into its
markets.
Some of the current and potential competitors have more business experience, greater financial resources or
marketing capacities. Some have established substantial brand recognition in their market segment and a larger
customer base. Eurofins assumes that the market for the supply of analytical testing methods will become more
concentrated.
It also cannot be ruled out that financially powerful market participants, such as food or water companies or other
large corporations, may compete with Eurofins in the future and create challenges that Eurofins will have to
overcome.
5.1.12 Cost Pressures, Price Falls and Profit Margins
As a result of competition and improvement in testing technologies, test prices can and do fall, especially for the
most common and standard tests. It is impossible to rule out further significant price reductions in the markets for
food, pharmaceutical, clinical and environmental analysis or other Eurofins markets. At the same time, due to
factors such as inflation, Eurofins’ costs could grow due to increased expenses for personnel, materials, and other
supplies/resources. Although Eurofins will attempt to maintain or improve profit margins through scale and cost
efficiency measures, there can be no certainty that Eurofins’ profit margins may not significantly decrease in the
future. Significant uncertainty remains on the mid and long-term business outlook, particularly regarding inflation
and interest rates trends in various geographies. These economic factors can have an impact on Eurofins’ cost
structures, on its clients and, consequently, on the Group’s performance. Sustained erosion of its margins would
have adverse effects on Eurofins’ net worth, financial position and operating results.
5.2 Financial Risks
5.2.1 Liquidity Risk
Liquidity risk refers to a risk for Eurofins that it would not have necessary funds to settle its commitments when
they fall due.
In order to mitigate such risk, Eurofins has entered into several credit facility agreements. Eurofins also has access
to the French NEU-CP (commercial paper) market since 2017, securing very competitive short term-funding backed
by undrawn credit facility agreements.
Eurofins periodically carries out liquidity risk reviews in relation to its current financial obligations. In regard to the
current economic environment, Eurofins and its subsidiaries comply with the terms of the credit agreements they
have entered into and at this time do not anticipate any particular liquidity problems.
Optimal cash management within the Group is ensured via cash-pooling structures, allowing concentration of cash
at holding level while maintaining an adequate level of liquidity at subsidiary level to meet local payment obligations.
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The Group’s ability to generate sufficient cash flows from operations to make scheduled payments on its debt
obligations will depend on its future financial performance, which will be affected by a range of economic,
competitive, regulatory, legislative, and business factors, many of which are outside of its control. If Eurofins is
unable to meet debt service obligations or comply with covenants, a default under debt agreements would occur,
which could force Eurofins to reduce or delay the completion or expansion of new laboratories and technologies,
sell assets, obtain additional equity capital or refinance or restructure its debt.
For more information on financial risk management, please see the notes to the 2024 consolidated financial
statements (note 2.30 “Financial Risk Management”).
5.2.2 Future Capital Requirements Risk
Eurofins’ strategic growth, particularly the acquisition of new laboratories and technologies to obtain access to
complementary technologies and expand Eurofins’ market position in existing and new geographies, requires the
extensive use of resources. Eurofins believes that it has sufficient internal or available funds for its current needs.
It cannot be ruled out, however, that Eurofins may determine it to be necessary or desirable to seek additional
funds through public or private financing, including external and equity capital financing or other agreements. Any
additional equity capital issuance may have a dilutive effect for shareholders, while external financing may subject
Eurofins to restrictions in dividend pay-outs or other restrictions.
During periods of economic uncertainty and high volatility in the capital markets, particularly in Europe at present,
it is possible that adequate funds may not be available at the required time, under acceptable conditions, or at all,
either through procurement via the capital markets or other means. If additional financing is limited or unavailable,
Eurofins could be forced to limit the planned expansion of its business activities. Furthermore, if Eurofins’ business
activities are incurring deficits at that point in time, and should additional Eurofins funds be unavailable to finance
business activities, it cannot be ruled out that Eurofins will be unable to maintain its operational business activities.
5.2.3 Credit Rating Risk
To secure better and cheaper access to debt capital markets, Eurofins has secured an inaugural investment grade
rating (Baa3, outlook stable since March 2023) by the credit rating agency Moody’s since July 2020. Eurofins also
secured an investment grade rating (BBB-, outlook stable) with the credit rating agency Fitch Ratings in May 2021.
These ratings are based on each respective rating agency’s methodologies, notably including financial metrics:
Eurofins’ future financial performances may therefore impact its credit rating. Any downgrade of such credit rating
could negatively impact Eurofins’ ability to access debt capital markets or deteriorate its costs of funding.
5.2.4 Interest Rate Risk
In order to finance parts of its acquisition and expansion costs, Eurofins and its subsidiaries have entered into
several credit facility agreements as described in this report. Such credit facilities are either based on a fixed rate
or on a variable rate. The variation risk of some credit facilities with variable interest rates is from time to time
hedged by various financial instruments (e.g., swapped with a fixed rate or capped with a maximum interest rate
covering a certain period). However, as certain lines of credit are still based on variable rates, it cannot be excluded
that the interest rate of these lines will rise in the future. This could have an adverse effect on Eurofins’ liquidity,
financial position, and operating results.
Eurofins’ exposure to the risk of changes in market interest rates relates to variable interest rate indebtedness and
hedging activities. To mitigate the Group’s exposure to interest rate changes, Eurofins has, in the past, entered
into several hedging contracts and might in the future enter into additional hedging contracts in order to limit the
potential impact of adverse changes in interest rates. However, there are no guarantees that such contracts would
be sufficient to fully protect the Group in the event of significant interest rate volatility. Those hedging contracts
may have negative consequences on the Group’s income statement (e.g., paying interest based on higher rates
than market rates for a given period) and balance sheet (e.g., derivative accounting on hedging instruments), which
could have a material adverse effect on the Group’s net worth, financial position and operating results. As of 31
December 2024, the Group had no material exposure to such hedging contracts.
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5.2.5 Foreign Currency Risk
Eurofins’ reported financial performance can be impacted by changes in foreign currencies (both transaction and
translation related). Though the Group did not do so as of 31 December 2024, to mitigate the Group’s exposure to
currency fluctuations, Eurofins might enter into several hedging contracts in order to limit the potential impact of
adverse changes in foreign currency fluctuations in the future. However, there are no guarantees that such
contracts would be sufficient to fully protect the Group in the event of significant volatility in one or more foreign
currencies. Those hedging contracts may have negative consequences on the Group’s income statement and
balance sheet (derivative accounting on hedging instruments), which could have a material adverse effect on the
Group’s net worth, financial position, and operating results.
5.2.6 Counterparty Risk
Eurofins’ exposure relates to the potential default of a counterparty holding financial assets (cash and cash
equivalents held for trading financial assets, loan receivables and derivative instruments), with the maximum
exposure being equal to the carrying amount of such assets.
To mitigate the counterparty risk, Eurofins endeavours to mainly deal with recognised financial institutions with
appropriate credit ratings. All counterparties are generally financial institutions regulated and controlled by the
national financial supervisory authorities of their respective countries.
For more information on market and counterparty risks, please see the notes to the 2024 consolidated financial
statements (note 2.33 “Exposure to market and counterparties risks”).
5.2.7 Revenues and Results Variability
Revenues and results depend on many factors and may not reach the level expected by the Group or by analysts
or previous revenue levels. Eurofins’ revenues vary from one quarter to another due to the seasonality of its
activities (with a traditionally low cycle at the beginning of the year), and it is expected that these fluctuations shall
continue. Eurofins’ revenues may also vary from one accounting year to another. In particular, significant
uncertainty remains on business outlook for 2025 onwards, particularly regarding geopolitical conflicts and
macroeconomic headwinds related to inflation and interest rate trends, deglobalisation and other factors that may
affect end market demand and Eurofins’, and its clients’, revenue development as well as cost structures.
Fluctuations in Eurofins’ revenues can have a strong impact on various factors within the business, such as the
market for existing and future services of the Group, changes to prices of services, changes in terms of staff and
employees, increased competition, changes in economic and market conditions, changes in the financial health of
or consolidation between Eurofins’ customers, legal changes that could have an impact on Eurofins’ activities, and
other economic factors. Fluctuations in Eurofins’ revenues and results may have an additional significant impact
on the level and volatility of Eurofins’ bonds and stock price.
5.3 Technological Risks
5.3.1 Rapid Technological Change Risks
The Group’s future success depends on its ability to keep pace with rapid technological changes that could make
its services and products less competitive or obsolete. The bioanalytics industry generally and, more specifically,
biologic, genomics, and medical testing are subject to increasingly rapid technological changes,for example related
to digitalisation, automation and artificial intelligence. While Eurofins actively invests in building its own technologies
and expertise, Eurofins’ competitors or others might develop technologies, services or products that are more
effective or commercially attractive than its current or future technologies, services or products, or that render its
technologies, services or products less competitive or obsolete. If competitors introduce superior technologies,
services or products and Eurofins cannot make enhancements to its technology to remain competitive, its
competitive position and, in turn, its business, revenues, and financial position would be materially and adversely
affected.
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5.3.2 Patents
Eurofins’ business is dependent, in part, on its ability to obtain patents in various jurisdictions for its current and
future technologies and services, to defend its patents and protect its know-how and trade secrets, and to operate
without infringing on the proprietary rights of others. There can be no assurance that its patents will not be
challenged by third parties or that, if challenged, those patents will be held valid. In addition, there can be no
assurance that any technologies or products developed by Eurofins will not be challenged by third parties owning
patent rights and, if challenged, will be held not to infringe on those patent rights. The expense involved in any
patent litigation can be significant. Eurofins also relies on unpatented proprietary technology, and there can be no
assurance that others will not independently develop or obtain similar products or technologies.
Eurofins attempts to obtain patent protection as deemed appropriate for its inventions from the appropriate patent
offices. The prosecution and/or defence of this protection can involve a great deal of time and entail significant
costs. There is no guarantee that all of the filed applications for patents will successfully pass the examination
process. As noted above, there is a risk that Eurofins could be subjected to patent litigation with third parties and
that an examination process could result in a negative result for Eurofins. The loss of material patents, materially
successful infringement claims or the cost of litigation could all have a negative effect on the net worth, financial
position and operating results of Eurofins.
In addition, it cannot be ruled out that patent rights will not be identified in the future that could significantly impair
Eurofins’ business activities. For example, no guarantee can be given that the research conducted by Eurofins and
its patent attorneys has actually uncovered all relevant patents/patent applications. Likewise, it is possible for
competitors to develop technology processes that Eurofins would like to use, but with respect to which Eurofins
cannot obtain a license nor have the rights thereto invalidated. Eurofins is aware and has been aware from time to
time of both various potential infringements of its patents and copies of its technology, but in view of the limited
impact of these on Eurofins’ markets so far and the cost, duration and uncertainty of legal action, Eurofins has not
generally deemed it necessary to take legal action. It cannot be ruled out that these infringements or copies may
make a larger impact on existing or future markets in which Eurofins operates or may seek to operate in, with a
corresponding negative impact on Eurofins’ operations or results of operations.
5.3.3 Infringement of Property Rights
Intellectual property rights allow patent infringement litigation to be initiated to obtain injunctive relief and
compensatory damages. Claims for commensurate compensation can be asserted in legal action based on
published patent applications. Competitors can be prevented from using the patented technology based on an
enforceable judgment.
It may also become necessary to take legal action against third parties that infringe upon the (licensed) patents of
Eurofins or patents which Eurofins will receive in the future, and to defend against patent infringement litigation
brought by third parties. Furthermore, if a completely or partially legally valid patent of a third party or a patent
subject to an opposition procedure or national invalidity proceedings is the subject of patent infringement litigation
brought by a third party against Eurofins, and if the court hearing the case were to decide that Eurofins has infringed
upon the patent, the court could prohibit the further use of the analytical method and could award the third party
compensatory damages for the past patent infringement. In addition, Eurofins could be a plaintiff in litigation
concerning its own patents and not win the case or fail to be successful to the extent necessary. In this case, for
example, a third party could bring competing technologies to market, resulting in a negative effect on Eurofins’
business activities and its net worth, financial position, and operating results. Such patent disputes can extend over
long periods of time and tie up significant Eurofins personnel and Group financial potential.
Neither Eurofins nor its patent attorneys can guarantee that there are no patent rights of third parties that could
impair the business operations of Eurofins. In addition, there is no certainty that a national court will not interpret
the scope of protection offered by the patent of a third party differently than Eurofins and its patent attorneys. This
could result in Eurofins or one of its business partners being charged with patent infringement and not succeeding
in invalidating the patent alleged to be infringed, even though neither Eurofins nor its patent attorneys had viewed
the corresponding action as a patent infringement or had viewed the patent as not strong enough to withstand legal
proceedings.
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The most severe risk for Eurofins stems from patent infringement. However, there may also be a litigation risk with
regard to other IP rights, such as, for example, know-how, trade secrets, copyrights, trademarks or database rights.
The occurrence of such risk may cause negative effects on the net worth, financial position, and operating results
of Eurofins.
5.3.4 Licenses and Research Contracts
Eurofins’ business involves entering into license, collaboration and other agreements with third parties relating to
the development of technologies and products, both as licensor and licensee. There is no guarantee that Eurofins
will be able to negotiate commercially acceptable licenses or other agreements necessary for the future exploitation
of its technologies and products or that any of its licenses or other agreements will be successful. In addition, there
is no guarantee that Eurofins’ collaborative partners will not pursue or develop competing technologies or products,
either on their own or in collaboration with others. Eurofins’ license agreements are generally for a fixed term and,
prior to the expiry of such term, may be terminated in certain circumstances, some of which may be beyond the
control of Eurofins. There is no certainty that license agreements that expire or are terminated will be renewed or
replaced, which could have an adverse effect on Eurofins’ business, financial position, operating results, and
prospects.
5.3.5 Information Technology Risks
IT systems are used extensively in virtually all aspects of our business, including clinical testing, test reporting,
billing, customer service, logistics, management of data and for internal purposes such as HR, accounting, etc.
Eurofins’ success depends on the continued and uninterrupted performance of its IT systems. These systems are
exposed to threats that are continuously analysed. This includes unauthorised attempts to gain access to valuable
data such as intellectual property or confidential Eurofins client data, alter its integrity, but also render systems
unavailable due to malicious activities or physical damages.
Eurofins reviews its security governance (including technical and organisational measures) on a regular basis and
implements new control procedures to improve its efficiency and to comply with standards such as ISO-27k. Since
2017, Eurofins has been working on the resilience of its global infrastructure by notably improving its detection and
reaction capabilities through: deployment of a 24/7 Security Operations Centre (SOC) in charge of handling security
alerts, improvement of the Security Information and Events Management (SIEM) and deployment of Intrusion
Detection Systems (IDS), that already covers most of the Group’s historic companies and is progressively being
rolled out to all entities including newly acquired companies. Moreover, as malicious cyber activities have become
more frequent globally and impact all markets and industries, Eurofins launched a large-scale transformation
programme aimed at improving the long-term viability, security and resilience of its IT systems and protecting its
assets, including customer data and proprietary data.
Long-term disruptions in the IT infrastructure, caused by events such as natural disasters, sabotage, cybercrime,
the outbreak of war, the escalation of hostilities and acts of terrorism, particularly involving cities in which Eurofins
has offices, could adversely affect its businesses. In light of this, Eurofins carries a cybercrime insurance policy,
the coverage of which might not fully compensate for all risks and losses that may occur in the case of an
exceptional major event. In addition, Eurofins has developed IT business continuity and disaster recovery plans for
parts of its operations and is continuously extending the coverage of such plans while updating methodologies.
These plans also include precautionary measures to prevent failures in IT systems and limit the impact of a failure,
should it occur.
Prevention of failures also applies to changes in IT systems that Eurofins is regularly required to implement in order
to keep pace with the rapid technological advances that characterise the market in which it competes. Eurofins
takes the necessary precautionary measures to ensure smooth transitions but acknowledges that there can be no
complete safeguard against the risks inherently stemming from such changes, such as incidents caused by
undetected errors or vulnerabilities and unexpected design flaws requiring costly maintenance. Significant delays
in the planned delivery of system enhancements or improvements and inadequate performance of systems once
they are completed could therefore occur.
Eurofins relies, in part, on the IT services provided by third parties. Eurofins aims to select its service providers with
care and to implement the necessary contractual, technical and organisational measures to manage the risks
related to the outsourcing of its IT services. However, there can only be a limited assurance of efficiency for both
the resilience and security of the third-party service providers, and the transfer of services from one service provider
to another without impairment. In the event of a delay in the delivery of data, Eurofins could be required to transfer
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its data collection operations to an alternative provider of server hosting services inducing unexpected delays in
delivering services or products.
Despite all the precautions taken, the risk of loss due to breach of confidentiality, failure of integrity of systems and
data, unavailability of systems and data, or inability to implement necessary IT changes within a reasonable
timeframe and with reasonable costs cannot be ruled out. The occurrence of such risk could have a negative effect
on the net worth, financial position and operating results of Eurofins, notably due to:
• financial consequences, including, but not limited to, loss of funds or assets, potential customer
compensation, legal and remediation costs, contractual damages, lost revenue;
• business disruption;
• reputational damage;
• fines or other actions taken by the authorities, such as data protection authorities; or
• consequences for Eurofins’ strategic assets, for instance, if Eurofins or its clients’ intellectual property is
stolen or compromised.
In past instances, cyber security risks have materialised as major or critical events disrupting a part of the Group’s
operations and business activities for an extended period of time. In 2019, Eurofins was targeted by a large-scale
and co-ordinated cyber-attack, impacting the availability of a significant amount of data stored on its servers. While
the integrity of data suffered a minor loss, no evidence of any confidentiality breach was discovered through
internally and externally led investigations (including collaboration with national cybercrime law enforcement
agencies).
5.3.6 Data Protection Risk
Failure of the Group to implement the requirements of data protection regulation in various jurisdictions, in particular
the EU and UK General Data Protection Regulation (GDPR), the California Consumer Privacy Act (CCPA) and the
Chinese Personal Information Protection Law (PIPL), could result in damage claims from affected individuals, as
well as enforcement actions from supervisory authorities, such as investigations or fines. Breaches of GDPR can
result in the imposition of a fine equivalent to up to 4% of Eurofins’ total worldwide annual turnover from the
preceding financial year. Despite the high priority Eurofins places on data privacy compliance, there is a risk that
not all legal requirements have been implemented in all Companies of the Group, particularly as all material data
protection laws may still be subject to changes and amendments.
Material damage claims for affected individuals, administrative fines, or other enforcement actions from supervisory
authorities would have adverse effects on Eurofins’ financial position and results, as well as on its reputation. As
of 31 December 2024, the Group had no material cases related to data protection risk.
5.3.7 Confidential Information
Eurofins has confidentiality agreements with numerous customers in place to not disclose the results of analyses
or other confidential information. If a breach of these agreements or laws concerning patient data privacy were to
occur, Eurofins could suffer financial penalties or have to respond to claims for damages.
As a mitigating measure, it is a general rule that new staff members are generally contractually committed not to
reveal any technology, confidential data or results of analysis and access to the entirety of the databases is limited
to a small number of staff. Staff in sensitive positions are often contractually bound by post-contractual non-
compete clauses in those countries where these agreements are generally practised and permitted by law.
Likewise, Eurofins generally imposes equally binding obligations on service providers to preserve the confidentiality
of any confidential or sensitive information they may receive in the context of their relationship with Eurofins, where
appropriate.
Nonetheless, it is impossible to categorically rule out detrimental risk to Eurofins arising from the disclosure of
confidential information to outside parties. Unauthorised access to Eurofins’ proprietary information or to client or
patient data in the Group’s computers or online tools could cause significant damage.
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5.3.8 Research and Development Projects
In the past, Eurofins has participated in various Research and Development (R&D) projects. Currently, there are
several ongoing internal and collaborative research and development projects, including projects with the European
Union. In the past, the majority of research projects undertaken by Eurofins have led to the successful application
of new analytical methods. However, investment in R&D by its very nature presents a risk. The potential products
and services to which Eurofins devotes R&D resources might never be successfully developed or commercialised
by the Group for numerous reasons, including:
• inability to develop products or services that address customer needs;
• inability to bring the products or services to market in a cost-effective or competitive manner;
• inability to obtain regulatory approvals in a timely manner, or at all;
• competitive products or services with superior performance;
• patent conflicts or unenforceable intellectual property rights;
• lack of demand for the particular product or services; and
• other factors that could make the product or process uneconomical or unfeasible.
Incurring material R&D expenses for potential products or services that are not successfully developed and/or
commercialised could have a material adverse effect on Eurofins’ business, financial condition, prospects and stock
price, especially in light of the fact that returns on investment may only be realised over an extended period of time
or not at all.
5.4 Industrial Risks
5.4.1 Partial or Total Destruction of the Testing Databases
Eurofins maintains databases containing information on almost all of its available tests, in addition to data such as
isotopic, genetic, chemical and other analytical fingerprints on products capable of analysis by Eurofins and which
represent an integral part of its technological advances.
If the databases were to be corrupted, damaged, or destroyed, Eurofins’ business could be adversely affected. To
limit the risk of partial or total destruction, the main databases are generally kept in clusters of high availability
datacentres interconnected via high-speed communication lines or, increasingly, in the cloud. To further ensure
availability, Eurofins and its subsidiaries generally apply off-site back-ups of the databases. Nonetheless, despite
these measures, financial consequences, business disruption, reputational damage, enforcement actions from the
authorities, and other consequences affecting Eurofins’ net worth, financial position, operating results or strategic
assets, as a result of the corruption or other dysfunction of its databases, cannot be ruled out.
5.4.2 Environmental Contamination Risks
Eurofins’ business uses biological and hazardous materials, which could injure people or violate laws, resulting in
liability that could adversely impact its financial condition and business. Its activities involve the controlled use of
potentially harmful biological materials, as well as hazardous materials, solvents and other chemicals, and various
radioactive compounds. While risk may be mitigated by the relatively small quantities of such materials used,
Eurofins cannot completely eliminate the risk of accidental contamination or injury from the use, storage, handling
or disposal of these materials, including in the case of error, accident, fire, or other damage to its facilities, or in the
case of the failure of specialised companies which often dispose of such materials for Eurofins companies to comply
with their contractual and regulatory obligations. While Eurofins maintains insurance for environmental liabilities at
levels which the Group believes are appropriate, in the event of contamination or injury, Eurofins could be held
liable for any resulting damages and the corresponding liability could exceed its insurance coverage and/or ability
to pay. Any contamination or injury could also damage its image and reputation, which is critical to obtaining new
business. In addition, Eurofins is subject to one or more levels of laws and regulations governing the use, storage,
handling and disposal of these materials and specified waste products in the countries in which it operates, as well
as the remedial measures to be taken in the event of an environmental incident or damage to biodiversity. The cost
of compliance with these laws and regulations is significant, and if changes are made to impose additional
requirements, these costs could increase and have an adverse impact on its financial position and results of
operations.
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5.4.3 Property Damage
As some of Eurofins’ laboratories work directly with flammable chemicals and/or heat as part of the testing services
they offer, Eurofins endeavours to implement measures to mitigate against risks of fire in laboratories, as well as
to reduce loss and damage, should an incident occur. These measures may not be sufficient in preventing fires or
explosions that could create significant damages to property, interruption of business operations, or even harm to
employees or third parties.
5.4.4 Professional Liability
As a general matter, providers of bioanalytical services may be subject to lawsuits alleging negligence, errors and
omissions, fraud, or other similar legal claims. These lawsuits could involve claims for substantial damages. For
example, Eurofins’ business contains the potential risk of substantial liability for damages in the event of analytical
errors or fraud by its staff where Eurofins and its subsidiaries not only verify the authenticity of products analysed,
but also look to detect dangerous components (e.g., pathogens, prions, pesticides, asbestos, mycotoxins, dioxins,
toxic substances, etc.). Since these results may be relied upon and used in the marketing activities or regulatory
filings of Eurofins’ clients, such negligence, errors or omissions in the (reporting of the results of the) analyses
could potentially lead to Eurofins’ clients being forced to organise a product recall or suffering other financial losses.
Potential errors could even have a wider impact on consumers’ health or property. In the event that Eurofins would
be found responsible for these damages, its liability could be very large. Errors or omissions in the analyses
performed by Eurofins’ clinical diagnostics division could also potentially impact patients’ health.
Although Eurofins carries out quality assurance programmes and staff training designed to prevent errors in its
laboratories, the risk of human error, accident or fraud by an employee can never be totally ruled out.
To the Group’s knowledge, such errors and omissions or acts of fraud by employees or leaders have occurred in
the past, for example in the detection of heavy metals and other hazardous contaminants in soil or water samples,
or in ecotoxicology testing in some of its U.S. laboratories, or may occur from time to time in some of its laboratories,
despite quality assurance and other precautionary measures implemented throughout the organisation. As soon
as it becomes aware of such facts, Eurofins’ management immediately takes action to remedy the situation, which
could include disciplinary measures up to the dismissal of the responsible employees and even, in some very rare
cases, the shutdown of an entire laboratory facility or department and the transfer of these activities to other
locations where necessary.
As a first line of defence, however, the service contracts entered into by Eurofins for the analysis of samples and
products generally provide that Eurofins’ liability for damages is limited to circumstances directly arising from the
samples or products that have been examined by Eurofins. Eurofins believes that these contractual clauses when
applicable and enforceable by law substantially limit Eurofins’ liability in cases of analytical error. However, any
professional liability litigation could also have an adverse impact on its client base and reputation.
The second line of defence in place is part of Eurofins’ business and risk management policy, where a global and
centralised general and professional liability insurance programme has been set up.
Despite these measures, it cannot be overlooked that successful claims for damages could have an adverse impact
on the net worth, financial position, and operating results of Eurofins.
5.4.5 Reputational Risk and Damage to Brand
Reputational risk refers to the potential for damage to the Group’s reputation and/or the Eurofins brand, resulting
in loss of earnings or adverse impact on market capitalisation as a result of stakeholders taking a negative view of
the Group or its actions.
Reputational risk may notably arise as a consequence of errors, fraud, or omissions by Eurofins’ employees in
relation to Eurofins’ testing activities, analyses, results, or disclosure on any activity or position by a Company of
the Group, or by one of its leaders or staff members, that contradicts applicable laws or the position of important
opinion groups.
Reputational risks may also arise from Eurofins’ ESG performance not meeting stakeholder expectations. Eurofins
continues to monitor regulatory developments and industry best practices, invest in ESG initiatives and
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technologies, enhance reporting and transparency and engage with stakeholders to understand their evolving
expectations. Nevertheless, temporary misalignments between the regulatory landscape and stakeholder
expectations may occur. Potential consequences in cases of misalignment include, but are not limited to, increased
compliance costs, operational complexity and negative publicity.
5.4.6 Insurances
As part of Eurofins’ risk management policy, various global and centralised insurance policies have been rolled
out, covering different types of risks, such as damage to Eurofins’ assets and associated financial losses, and
liabilities or other insurance policies required for its activities. In 2024, Eurofins continued its policy of centralising
its insurance programmes, enabling it to improve and increase coverage, while gaining more visibility on different
local insurance programmes and keeping overall insurance costs under control. For confidentiality reasons,
insurers and insured limits cannot be disclosed.
Within the scope of its global insurance programmes, the Group has taken out the following insurance policies,
among other coverage, for some or most of its Companies:
• Property Damage and Business Interruption Insurance, including terrorism, strike riot and civil commotion
and natural peril coverage including earthquake coverage in California, USA;
• Construction All Risk insurance
• General, Products and Professional Liability Insurance involving the traditional insurance and reinsurance
market, as well as the Group’s internal reinsurance subsidiary;
• Environmental Liability Insurance;
• Employment Practices Liability Insurance;
• Directors and Officers Liability Insurance (D&O);
• Business Travel Assistanceand
• Cyber Insurance.
The aim of the D&O policy is to cover the insured Eurofins Directors and Officers, including some key managers
(such as the Chief Executive Officer, the main operating and scientific directors, and some other executive
managers), as well as the Directors and Officers of Companies controlled by the Group, for any pecuniary
consequences of loss or damage resulting from any claims brought against them, binding their civil liability whether
individual or joint, and attributable to any professional misconduct, whether actual or alleged, committed by them
in performing their managerial duties.
This policy is also subject to certain conditions and restrictions of common practice for similar contracts.
In addition, the Group’s subsidiaries have subscribed to mandatory and any other relevant insurance policies
according to local regulations and local practices. As noted above, Eurofins believes that it has procured sufficient
insurance coverage at reasonable terms and conditions and that, save for catastrophic damages, its insurance
policies and coverage limits provide sufficient protection for Eurofins’ present requirements. Insured limits are being
reviewed by Eurofins and its insurance brokers on a regular basis (taking into account the evolution of the insurance
market, historical claims within Eurofins’ industry as well as Eurofins’ growth and exposure to potential claims) and
where needed, amended. Up to the present time, Eurofins has very rarely been subject to substantial proven
liability. However, it cannot be guaranteed that any claims for damages will not be asserted against Eurofins in the
future, that Eurofins’ insurance coverage will prove to be sufficient in all cases, or that Eurofins will not sustain
losses outside the scope or limits of its insurance coverage.
Although Eurofins believes that the present reserves, if any, for product and professional liability claims are
sufficient to cover currently estimated exposures, it is possible that the Group or individual subsidiaries may incur
liabilities in excess of these recorded reserves, where they exist.
Claims in excess of recorded reserves if any and/or applicable insurance coverage could have adverse effects on
Eurofins’ net worth, financial position, operating results (principally costs of services) and cash flows in the period
in which reserve estimates are adjusted or paid. In addition, successful major claims could also have a negative
impact on Eurofins.
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5.5 Other Risks
5.5.1 Risk of Loss of Key Employees and Leaders
Eurofins has several key employees and leaders (including its CEO) with highly specialised skills or leadership
talent and extensive experience in their fields. If one or more of these key employees were to leave, Eurofins may
have difficulty replacing them. Eurofins attempts to mitigate the risk of losing key employees through retention
programmes, succession planning, and long-term incentive plans.
Eurofins may be unable to retain key employees or attract new highly qualified employees, which could have a
negative impact on Eurofins’ business, financial situation or results of operations.
5.5.2 Risks Related to Human Capital
Eurofins’ ability to conduct and be competitive in its businesses is dependent on the size, strength and engagement
of its global workforce. To this end, it is important for the Company to be able to recruit, retain, develop, manage
and compensate employees, particularly those with specific and/or specialised skills, in markets that have high
degrees of competition for labour. If Eurofins is not able to adequately staff its businesses with the appropriate
personnel, its competitive positioning may be affected.
Eurofins is also committed to providing a safe and healthy working environment for all employees. The well-being
of its workforce is a high priority for the Company as is the strict adherence to rigorous health and safety standards.
Nevertheless, there are potential risks associated with its operations that may result in incidents occurring on-site
or during business travel and work-related illnesses. Potential consequences from such risks can be significant
and include physical injuries or fatalities, litigations, regulatory enforcement actions, loss of accreditation, financial
penalties and reputational damage.
5.5.3 Tax Risks
Eurofins conducts its business activities in many different countries and is potentially subject to tax liabilities in
multiple jurisdictions.
Eurofins believes its tax returns, which are prepared in cooperation with its local tax advisers and accountants, are
accurate and complete and that the Group has established adequate tax provisions. Accordingly, in the event of
an external tax audit, Eurofins does not expect any material changes to its tax assessment or any additional tax
liability. However, Eurofins may be subject to additional tax liability, including late payment interest and/or penalties,
in particular if tax authorities' interpretation of the facts or laws should differ.
These unforeseen tax claims may result from a number of causes, including a taxable presence of a Company of
the Group in a taxing jurisdiction, transfer pricing adjustments, a revision of allowable expenses, the application of
indirect taxes on certain business transactions after the event, and disallowance of the benefits of a tax treaty. In
addition, Eurofins may be subject to tax law changes in a taxing jurisdiction leading to retroactive tax claims.
Unforeseen tax claims or tax liabilities could have adverse effects on Eurofins’ cash flow, net worth, financial
position, and operating results.
For more information on tax risks and provisions, please see the notes to the 2024 consolidated financial
statements (note 2.36 “Contingencies”).
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5.5.4 Risks of Litigation
For more information on provisions, please see the notes to the 2024 consolidated financial statements (note 2.24
“Provisions”).
Disputes in relation to Eurofins’ business arise from time to time and can result in legal or arbitration proceedings.
The outcome of these proceedings cannot be predicted. Ongoing litigation or potential new litigation could cause
significant financial or reputational damage for Eurofins and may arise in the context of the detection of biological
contaminants in dairy products in Europe.
A negative outcome in a substantial litigation or arbitration case could have a material impact on Eurofins’ business
and financial position.
Currently, there are a few claims which have been threatened or asserted in pending litigation or arbitration
proceedings concerning Eurofins and/or its subsidiaries and affiliates in the ordinary course of business or as a
result of acquisitions.
For more information on provisions, please see the notes to the 2024 consolidated financial statements (note 2.24
“Provisions”).
5.5.5 Internal Controls Risks
Eurofins is enhancing its internal control platform to deploy necessary measures to manage existing and potential
financial and operational risks, including measures aimed at limiting incidents that could lead to claims against
Eurofins and its subsidiaries (see Corporate Governance Charter – section 1.1.6 “Internal Control and Internal
Audit”).
If Eurofins is unable to maintain effective internal control over financial reporting or disclosure controls and
procedures, the accuracy and timeliness of its financial reporting may be adversely affected. Maintaining effective
internal controls over its financial reporting is necessary in order to produce reliable financial statements. Moreover,
Eurofins must maintain effective disclosure controls and procedures in order to provide reasonable assurance that
the reported information is recorded, processed and summarised in a timely manner, and that such information is
accumulated and communicated to Eurofins’ management to allow for timely decisions regarding required
disclosure. If Eurofins is unable to maintain effective internal controls over financial reporting or disclosure controls
and procedures, or to remediate any material weakness, it could result in a material misstatement of its
consolidated financial statements that could require a restatement or other disclosures which may have an adverse
impact on investor confidence and the market price of Eurofins’ securities.
5.5.6 Fraud/Ethical risks
Eurofins has implemented various systems of quality assurance in the majority of its laboratories, designed to
ensure consistent procedures and traceability of results. Additionally, local finance departments, Group finance
teams and Group Internal Audit, as well as external auditors, perform regular controls and audit checks. Eurofins
also encourages all internal and external parties to report suspicious situations and facts in a confidential and
secure manner. To this effect, a whistleblowing point of contact has been created to handle concerns and queries
both internally from Eurofins staff, and externally from third parties. One of Eurofins’ core values is integrity: the
Eurofins Group Code of Ethics, a number of derived policies, and trainings on these policies, are in place to
safeguard integrity. Attempts to incite customers or partners to commit unethical steps are not permitted in the
Group. However, the possibility of employee fraud or corruption may not be ruled out. This could have a very
damaging impact on Eurofins and potentially put its existence at risk.
The Eurofins Group Code of Ethics explicitly states that Eurofins has zero tolerance towards the criminal facilitation
of tax evasion and is committed to rejecting the facilitation of tax evasion. Tax fraud is one of the topics included in
the Group’s whistleblowing procedure.
5.5.7 Risk from Climate Change
Eurofins acknowledges that climate change and global warming is a risk to the global economy and to society, as
well as a driver for change. Eurofins Companies situated in regions where significant climate changes are
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anticipated may need to invest resources to implement adaptation strategies for their people, assets, and
operations. The rising probability and severity of extreme weather events, including storms and floods in the areas
of operation for these companies, could lead to business interruptions, property damage, supply chain disruption,
and jeopardise employee safety.
Global warming may have a significant and direct negative effect on Eurofins’ customers as the supply chains of
customers may be subject to change. For example, food production in some regions of the world may be negatively
affected, which may force Eurofins’ clients to adjust supply chains with potentially negative effects on Eurofins’
Food Testing activities. Climate change may also have a detrimental effect on building activity in some regions,
which may in turn have a negative effect on the Environment Testing business of Eurofins.
In addition, transitioning to a lower-carbon economy may entail extensive policy, legal, technology, and market
changes to address mitigation and adaptation requirements related to climate change. Depending on the nature,
speed, and focus of these changes, transition risks may pose varying levels of financial and reputational risk to our
organisation.
As a market-leading analytical partner with a worldwide network of laboratories, Eurofins believes it is well-
positioned to make potential adjustments in order to meet changing requirements.
5.5.8 Volatility of the Market Price of Shares
The shares of Eurofins have been listed on Euronext Paris since 24 October 1997.
The market price of Eurofins’ securities may be volatile. Any securities traded on a securities exchange are subject
to risk factors which affect their price. Over time, global securities markets have experienced price fluctuations,
which have been unrelated to the operating performance of the affected companies. Some of the factors that could
negatively affect the price of Eurofins’ securities include:
• general market and economic conditions, including disruptions, downgrades, credit events and perceived
problems in the credit markets;
• actual or anticipated variations in the quarterly operating results or distributions;
• changes in the investments or asset composition of Eurofins;
• write-downs or perceived credit or liquidity issues affecting the assets of Eurofins;
• market perception of Eurofins, its business and its assets;
• the level of indebtedness of Eurofins and/or adverse market reaction to any indebtedness incurred in the
future;
• additions to or departures of Eurofins key personnel;
• changes in market valuations of similar companies;
• litigation or regulatory actions;
• dissemination of negative reports, possibly issued by short sellers or other market participants, aimed at
serving their own financial interests by profiteering at the expense of investors; and
• speculation in the media or investment community.
There can be no assurance that the market price of Eurofins’ securities will not experience significant fluctuations
in the future, including fluctuations that are unrelated to the performance of Eurofins.
5.5.9 Significant Shareholding
The Martin family, through direct shareholdings and indirectly through their shareholding in Analytical Bioventures
SCA, which is controlled by Dr Gilles Martin, held 32.9% of the shares, with 67.1% of the voting rights in Eurofins
as of 31 December 2024.
The free float represents 63.9% of the shares and 32.9% of the voting rights of the Company.
Due to their significant shareholding, the current major shareholders are jointly in a position to control the outcome
of important business decisions that require shareholder consent, regardless of votes to the contrary by the other
shareholders. This significant shareholding also allows them to further increase their percentage of voting rights in
Eurofins through the issuance of additional beneficiary units. These types of decisions could have a materially
adverse impact on the results and value of Eurofins and the shares owned by others, as well as reduce the liquidity
of the shares.
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Future sales or issuances of a substantial number of securities in the public markets and the perception of such
sales or issuances could depress the trading price of Eurofins’ securities. Eurofins cannot predict the effect that
such sales or issuances would have on the market price of its securities. Eurofins may need additional funds in the
future and issue securities in lieu of incurring indebtedness, which may dilute existing holders of Eurofins’ securities.
Additionally, Eurofins may issue securities giving a more favourable position to holders of securities than that of its
shareholders.
5.5.10 Unforeseen High Impact Risk
Notwithstanding the risks outlined above, Eurofins’ operations may be subject to highly improbable, unforeseen
events which may have a significant negative impact on its business activities, financial situation, and operating
performance. Due to the unforeseeable nature of such events, it is not reasonably possible to mitigate their impact
or predict the nature or extent of any resulting damage. Such unforeseen events may have a material adverse
effect on the Group's net worth, financial position, and operating results.
5.5.11 Trade Compliance and Export Controls Risks
Any transactions or import, export and re-export activities must be conducted in full compliance with all applicable
import and export control laws, regulations, and policies as well as governmental trade restrictions and international
sanctions. Nevertheless, the export controls regulatory environment is fast-moving. For example, the Russia-
Ukraine crisis escalated quickly and forced governments around the world to implement far-reaching sanctions
against Russian parties. While this risk is deemed to be under control, there might be a risk of involuntary
compliance breaches in such a fast-moving regulatory environment. Export Control non-compliance may lead to
material penalties including both criminal and financial sanctions as well as a potential loss of export authorisation
and being blacklisted by the authorities.
5.5.12 Reliability of Opinions and Predictions
All assumptions, opinions and expectations that do not represent historical facts are expressly the opinions and
predictions of Eurofins’ management. Opinions and forward-looking statements are identified by expressions such
as "planned", "expected", "believes", "assumes", "holds the view", "to the extent known", and similar formulations.
Such statements reflect the management’s current opinions regarding possible future events, which are by their
nature uncertain and thus subject to risks. All forward-looking statements are subject to various risks and
uncertainties. Actual events and results may differ substantially from expectations due to a variety of factors.
Eurofins commits to no obligation or commitment to revise or update these opinions or forward-looking statements
as a result of new information rendering these statements no longer accurate or timely.
Dated 26 February 2025
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6 Eurofins Group Remuneration
Report 2024
6.1 A note from the Chair of the Nomination and
Remuneration Committee
On behalf of the Nomination and Remuneration Committee (hereafter also referred to as “the Committee”), I am
pleased to present Eurofins’ 2024 Remuneration Report (“Remuneration Report”). The Luxembourg law of 24 May
2011 on the exercise of certain rights of shareholders at general meetings of EU listed companies as amended by
law of 1 August 2019 and the Luxembourg Stock Exchange’s X Principles of Corporate Governance serve as
reference.
The Committee met five times in 2024 to discuss the following main items:
• Review and approval of the Eurofins Group 2023 Remuneration Report
• Discussion and proposal of improvements to the Eurofins Group 2024 Remuneration Report and
Remuneration Policy, as described below;
• Recommendations on Board mandates to be renewed at the AGM of shareholders held in April 2024,
design of on-boarding plan for new non-executive director appointed in 2024;
• Discussion around profiles for an additional independent, non-executive director to Eurofins’ Board of
Directors, with any appointment subject to a shareholder vote at an Annual General Meeting;
• Succession planning for the Chairman and Chief Executive Officer for the short term (i.e., in case of an
unexpected event) and for the long term, depending on future strategic and organisational evolution;
• Review of the share ownership status of GOC leaders;
• Assessment of the role of Lead Independent Director (LID) and recommendation to the Board for LID
renewal;
• Self-assessment of the internal functioning of the Nomination and Remuneration Committee;
• Regular review of the Committee’s terms of reference.
Taking into consideration the results of its benchmarking assessment, as well as its desire to enhance disclosures
demonstrating the alignment between pay and performance and the rigour of target setting, the Committee has
decided to amend the Remuneration Policy and correspondingly update the Remuneration Report to reflect the
following changes:
• To align Eurofins’ remuneration approach with peer practice, the CEO’s compensation now includes, for
the first time, a Short-Term Incentive (STI) component. Additionally, a Long-Term Incentive (LTI)
component is also now included;
• The determination of the CEO’s STI is based on a combination of clear and stringent financial, operational
and sustainability-linked indicators, aligned with the Company’s publicly communicated targets. The
indicators include adjusted EBITDA, pro forma annual revenues from acquisitions, net working capital
intensity and CO
2
emissions;
Considering the abovementioned changes, this report now provides a comprehensive disclosure of the total
remuneration (in terms of fixed compensation, STI and LTI) of the CEO as well as the other operational and
functional leaders of the GOC.
Just as in past years, the Board of Directors will submit for consultative vote at the AGM of shareholders in April
2025 the Remuneration Policy and Remuneration Report as described in the following pages of this document.
We trust this disclosure provides valuable insights and thank you for your continued support.
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Yours sincerely,
Evie Roos
Chair of the Nomination and Remuneration Committee
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183
6.2 Key Developments in Remuneration
6.2.1 Overall Group performance in 2024
Eurofins delivered a strong set of financial results in FY 2024. Revenues of €6,951m increased year-on-year by
6.7% and organically by 4.7%, setting a new record and exceeding Eurofins' peak COVID-19 pandemic-driven
revenue level. In terms of profitability, adjusted EBITDA of €1,552m was 13.8% higher year-on-year and 67%
higher than the €931m recorded before the COVID-19 pandemic in FY 2019, representing a CAGR of 11%. The
corresponding margin of 22.3% and year-on-year improvement of 140bps vs FY 2023 was in line with Eurofins’
public objectives as confirmed on 22 October 2024. All regions demonstrated improvement in profitability. In terms
of Group EBITAS, there was an increase from €669m in FY 2023 to €843m in FY 2024.
Eurofins teams also made further progress toward improving the Group’s environmental performance. Total
emissions were reduced by 8% from 489 ktCO2e in FY 2023 to 471 ktCO2e in FY 2024. Carbon intensity
(tCO2e/m€ revenues) also declined to 67 in FY 2024, a reduction of 32% vs FY 2019.
6.2.2 Key developments in remuneration in 2024
In 2024, Eurofins’ Board of Directors comprised of five independent Non-Executive Directors, one Non-Executive
Director and two Executive Directors. Eurofins’ Chief Executive Officer remained Chairman of the Board of
Directors. As of 31 December 2024, the Group Operating Council or GOC (excluding the CEO), which carries out
the Group’s strategy and handles day-to-day business activities, consisted of 11 members (decreased from 13 at
year-end 2023).
In 2024 the overall compensation of the Company’s Non-Executive and Executive Directors and of GOC members
has been in line with the approved Group Remuneration Policy.
Compared to 2023, amendments were made to the Policy with regards to the first-time addition of short-term
incentive and to the inclusion of long-term incentive components to the CEO compensation to bring it in line with
peer practice. The 2024 Remuneration Report also describes the Remuneration Policy for Directors (now including
the possibility to grant restricted stock units (RSU) without performance conditions) and for members of the GOC
(slight change of the STI plan design for functional leaders).
In 2024, the compensation for Non-Executive Directors was increased by 4%, within the maximum aggregate fees
approved by the AGM 2024 of €450,000.
Compared to 2023, the CEO’s fixed compensation increased from €1,351,000 in 2023 to €1,432,000 in 2024
(+5.9% year-on-year). In addition, and in line with peer practice, a STI and a LTI were introduced in 2024.
In 2024, the total compensation (including fixed compensation, benefits in kind, earned short-term incentives and
awarded long-term incentives) for GOC members excluding the CEO increased to €18.5m (vs €15.2m in 2023)
while the average compensation increased to €1,481k (vs €1,111k in 2023). The net increase in the average
compensation is mainly due to the mix effect resulting from (i) the change in size of the GOC in terms of members
(12.5 FTE in 2024 vs 13.7 FTE in 2023), (ii) the introduction of a deferred component in the STI opportunity for the
first time for some non-U.S. based GOC members and (iii) the increase in the value at grant of LTI awarded to
GOC members in 2024. More detailed information is provided in Section 6.5 of the Report.
6.3 Group Remuneration Policy
6.3.1 General Principles
In compliance with its role as defined by Eurofins’ Board of Directors and the Corporate Governance Charter,
Eurofins’ Nomination and Remuneration Committee (the “Committee”) assisted the Board of Directors in the
development of the current Eurofins Group Remuneration Policy (the “Policy”). This Policy was updated during
2024 and reviewed again in February 2025 by the Committee. The new version of the Policy was officially approved
by the Board of Directors on 24 February 2025.
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The Policy provides clarity and transparency on the remuneration principles of Eurofins’ Directors and the GOC
members and is in alignment with the long-term strategic interest of the Company and its shareholders. The Policy
has been developed by Eurofins’ Human Resources and Finance and Administration functions with oversight and
guidance from the Nomination and Remuneration Committee.
Eurofins’ principles for compensation of the GOC members are the result of careful deliberation and are designed
to fulfil a number of important strategic objectives:
• Align the individual’s contribution with Eurofins’ objectives and its goal of long-term value creation;
• Reward people based on their responsibilities and performance;
• Attract, motivate and retain high performers by positioning total compensation to be competitive with peers
and aligned to Eurofins’ entrepreneurial roots and long-term focus.
The compensation of the members of the Board of Directors is set to compensate for their contributions to and
their responsibilities as part of the highest governing body of the Group.
6.3.2 Remuneration Governance
The following chart provides an overview of the decision-making process relating to the Remuneration Policy, the
aggregate remuneration of the Board of Directors and other remuneration elements:
Remuneration Element
Nomination and
Remuneration Committee
Board of
Directors
AGM
Remuneration Policy
Recommendation
Approval
Consultative vote
Maximum aggregate fees to be
paid to non-executive directors
Recommendation
Proposal
Binding vote
Remuneration report
Recommendation
Approval
Consultative vote
In the evaluation and decision-making process, contributions from internal advisory functions are incorporated
Recommendations are made by the Nomination and Remuneration Committee and approved by the Board of
Directors. To avoid potential conflicts of interest, members of the Board of Directors are not entitled to cast a vote
on a resolution involving their own compensation.
Nomination and Remuneration Committee
The Board of Directors has established a Nomination and Remuneration Committee comprised of independent
directors only, responsible for overseeing and guiding the remuneration policies and practices of the Company.
The role, composition, appointment and functioning of the Committee is further described in detail in the Corporate
Governance Section of this report.
Say-On-Pay Vote
In line with the requirements of the 2019 Luxembourg Law translating the EU Shareholders’ Rights Directive (SRD
II) into Luxembourg domestic law, Eurofins’ Board of Directors is required to put the Policy to a consultative say-
on-pay vote at least every four years. However, in line with best practice and in the interest of its shareholders,
Eurofins’ Board of Directors proposes this motion at each Annual General Meeting. This vote is not intended to
address any specific item of compensation, but rather to seek support for the overall compensation of Eurofins’
Board of Directors and GOC members and the executive compensation policies and practices described in the
Policy.
The Board of Directors and the Committee value the opinions of the Company’s shareholders and will take into
consideration the outcome of the consultative vote, in conjunction with other factors as the Board of Directors and
the Committee consider appropriate.
6.3.3 Remuneration for the Board of Directors
On the one hand, to ensure their independence in the exercise of their duties, the compensation of Non-Executive
Directors is based on annual fixed fees and on additional annual fixed fees for participation on Board Committees
(Audit and Risk Committee, Sustainability and Corporate Governance Committee, Nomination and Remuneration
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185
Committee). On the other hand, to ensure alignment with the interests of shareholders, the possibility has been
introduced to grant to Non-Executive Directors restricted stock units (RSU) without any performance conditions.
The Board of Directors reviews the Board and Committee membership and chairperson fees of the Non-Executive
Directors annually and may adjust fees within the limit of the aggregate amount approved at the AGM. Non-
executive members of the Board of Directors may have time-limited advisory contracts and are not entitled to
receive termination or severance payments.
The Chairman of the Board of Directors is responsible for determining the individual allocation of fees of the Non-
Executive Directors, within the limit of the aggregate amount approved at the Annual General Meeting of
Shareholders. Unless specific criteria require otherwise, fees paid to Non-Executive Directors should be the same
for equal roles (directorship, membership in Committees).
Non-Executive Members of the Board of Directors have not received any variable short-term or any long-term
incentives since 2020. However, as is the case in other publicly listed companies of similar size and in order to
create more alignment of interests between the Company’s shareholders and the members of its Board of Directors,
going forward the Company reserves the possibility to grant to its Non-Executive Directors, within the limit of the
aggregate amount approved by the General Assembly, restricted stock units (RSU) without any performance
conditions.
In their role as Directors of Eurofins Scientific SE, Executive Directors do not receive any fees from Eurofins
Scientific SE or for participation in Board committees. Executive Directors only receive fixed and/or variable
compensation for their executive positions along the same lines as GOC members. However, Executive Directors
are not entitled to receive termination or severance payments.
There is no minimum shareholding requirement for Non-Executive Directors. As a reminder, the two Executive
Directors and one Non-Executive Director hold a controlling ownership in the Company via their private holding
Analytical Bioventures SCA (see Corporate Governance statements, Annual Report – section 2.2.2).
6.3.4 Remuneration for the members of the GOC
The following describes the key elements of the Eurofins Group Remuneration Policy for GOC members including
the CEO. There are three main categories of GOC members: (i) the CEO, (ii) Operational GOC members who have
a responsibility over a geographical and/or business scope and (iii) Functional GOC members who oversee a
specific area of expertise Group-wide. The Remuneration Policy also applies to a broader group of Senior
Executives (as defined under the Incentive Compensation Clawback Policy section) whose management duties,
responsibilities and contributions are key to the overall Group performance.
The Policy defines a set of remuneration elements that are aligned with best market practices and provide a mix of
short-term and long-term incentives. The total compensation consists of:
a) base gross fixed compensation,
b) benefits in kind,
c) short-term incentives, including a deferred component for GOC members excluding the CEO,
d) a signing bonus or long-term incentive award, in some cases, and
e) long-term incentives.
Fixed Compensation
The fixed compensation is set to support the recruitment and retention of GOC members that have the skillset and
experience required to drive business performance and implement Group strategy. Fixed compensation amounts
need to be competitive with the external market and with companies of a similar size and complexity.
The fixed compensation is set by the Board of Directors upon recommendation of the Committee and reflects the
skills, experience, performance, and responsibilities of each GOC member. To set the fixed compensation, the
Committee refers to benchmarks and advice from executive search specialists, remuneration statistics of
interviewed candidates as well as usual market practices.
Benefits in Kind
Benefits in kind are awarded to support the long-term health and well-being of GOC members and are aligned to
market practice for individuals in comparable positions and countries. Recurring benefits in kind awarded typically
include car-related benefits, employer contributions to pension insurance (defined contribution plans only), medical
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186
benefits, contributions to cover school fees, etc. In addition to these benefits, Eurofins companies provide certain
support to some of their Executives so they can focus their time on their roles for Eurofins including tax computation
and other support afforded to GOC members in comparable positions, such as personal assistants, or a driver for
the Chief Executive Officer.
In circumstances where a GOC member is required to relocate for work purposes, the Group may reimburse
reasonable related costs, such as relocation, housing costs, tax and social equalisation and education assistance.
Short-Term Incentives
The Short-Term Incentive (“STI”) rewards the year-on-year performance of a GOC member against clear and
measurable strategic, financial, operational and sustainable business development objectives which support the
Company’s long-term value creation for the benefit of its stakeholders. The STI is a key element of the Group’s
pay-for-performance approach to remuneration.
The individual targets are designed to create meaningful, ambitious, achievable and measurable performance
objectives. They are customised to the scope of responsibilities of each GOC member.
Short-term Incentive for the CEO
For the first time in 2024, an STI has been granted to the CEO. An overview of the performance indicators used to
determine the CEO’s STI is summarised in the following table:
Short-term Incentive for the CEO
Category
Strategic
Objectives
Weighting
KPIs / Deliverables / Achievements
Financial
Goals
Profitability
70%
Adjusted EBITDA of the financial year (at average FX rates of
the previous financial year)
Cash flow
10%
Net working capital intensity at the end of the financial year (in
% of Group revenues of the financial year)
Personal
Goals
Strategic and
ESG
10%
M&A strategic objective (based on pro forma annual revenues
of companies acquired including transactions closed or signed
in the financial year)
10%
CO
2
emissions reduction in the financial year (in tCO
2
e/FTE)
Short-term Incentive for GOC members (excluding the CEO)
An overview of the diverse performance indicators used to determine STIs for Operational Leaders is summarised
in the following table:
Short-term Incentive for Operational Leaders
Category
Strategic
Objectives
Weighting
KPIs / Deliverables / Achievements
Main
Financial
Goals
Profitability
≈ 70%
EBITAS of Leader’s Scope of Responsibility
Eurofins EBITAS proxy
Personal
Goals
ESG & non-
ESG
≈ 30%
- Environmental metrics (mainly CO
2
emissions reduction target)
- Social metrics (such as gender diversity, health and safety,
succession planning)
- Governance (compliance, etc.)
- Reinforcing leadership through recruitment, development,
coaching, internal mobility, succession planning
- Delivery of strategic projects (Quality Management Systems,
Site moves, IT infrastructure segregation, …)
Other financial targets (delivery of cost optimisation projects,
revenue and net working capital targets, redress loss making
entities, plan and implement organic growth initiatives, etc.)
REMUNERATION REPORT
187
The payout for the two primary financial objectives for Operational Leaders (EBITAS of the Leader’s Scope of
Responsibility and Eurofins EBITAS proxy), weighting ≈ 70% of the STI, is determined using thresholds that are
aligned between leaders.
An overview of the diverse performance indicators used to determine short-term incentives for Functional Leaders
is summarised in the following table:
Short-term Incentive for Functional Leaders
Category
Strategic
Objectives
Weighting
KPIs / Deliverables / Achievements
Main
Financial
Goals
Profitability
and cash
flow
≈ 25-40%
Eurofins EBITAS proxy
Net working capital intensity at the end of the financial year (in
% of Group revenues of the financial year)
Savings in Group Service Functions (GSF)
Personal
Goals
ESG & non-
ESG
≈ 60-75%
- Operational goals (GSF strategy, organisation, processes)
- IT strategy execution (budget, infrastructure, solutions)
ESG
- Customer satisfaction and quality of service
- CO
2
emissions reduction in the financial year (in tCO
2
e/FTE)
- HR: reinforce leadership through recruitment, development,
coaching, internal mobility, succession planning
- Governance (compliance, etc.)
Note that adjustments to targets and actual results may be made to reflect unpredictable or exceptional events
that leaders could not foresee at budget time or could not influence during the year.
The following graphic illustrates the timeline for setting objectives, evaluating achievements, and distributing the
payouts of STI rewards (including deferred variable compensation) for GOC members (excluding the CEO):
Beginning of the performance year N
Upon the recommendation of the Chief Executive Officer, the performance objectives and
measures are established, based on the business priorities for the year. They comprise a mix of
financial and non-financial performance measures and set ambitious objectives customised for
the scope of the senior executive.
Beginning of the performance year N+1
Achievement of performance targets of performance year N are evaluated, reviewed and the
respective STI payouts are calculated.
Latest one month after achievements evaluation
Senior executives are informed of their respective achievements and STI payouts at their annual
review meetings at the beginning of performance year N+1. Thereafter, in general, cash payouts
typically occur at the latest one month later, i.e., in March (for U.S.-based GOC members) and
April for all other GOC members. For most executives, part of the STI for performance year N
is paid at this time in performance year N+1, while the remainder is deferred and will be paid in
performance year N+4.
4 years after the performance year
For executives that received partial payment of their STI in performance year N+1, the
remainder of the STI of the performance year N is paid out in performance year N+4, three
years after the initial payout in year N+1, as a recurring incentive for retention. This deferred
pay-out of the STI is called “Deferred Short-term Incentive Variable Compensation”.
REMUNERATION REPORT
188
Generally, the maximum amount of STI paid to a GOC member in a given year cannot exceed 100% of the on-
target bonus. In circumstances where exceptional strategic projects or targets beyond the initially agreed
performance scope are requested by the Board of Directors and achieved by the GOC member, those
achievements may compensate for performance below 100% of the on-target objective. However, overall
achievements above 100% of the on-target objective still cannot result in STI payment of more than 200% of the
on-target bonus.
Lastly, an Incentive Compensation Clawback Policy was introduced for the first time in 2021 by the Board of
Directors upon the recommendation of the Nomination and Remuneration committee covering both short-term
incentives and long-term incentives that are paid, granted, awarded to, received or earned by, or vested in favour
of Senior Executives (see Incentive Compensation Clawback Policy section below for more details).
Signing Bonus
Eurofins does not have a policy of granting a one-time signing bonus in cash. However, in very exceptional
circumstances, given that there might be some relocation expenses and long- and short-term incentive
compensation lost when a GOC member leaves his/her previous employer to join Eurofins, Eurofins’ CEO may
award a one-time signing bonus in cash or equity-based instruments to compensate for the above. It is usually
subject to a clawback if the GOC member resigns within 12 to 24 months following payment.
Long-term Incentives
Long-Term Incentives (“LTI”) are designed to link a significant part of the GOC member’s compensation opportunity
with the long-term performance of the Group.
Eurofins’ Board of Directors can initiate one or more Long-Term Incentive Plans (“LTIPs”) during the term of the
Policy under the shareholder authorisation given by the Company statutes and the Corporate Governance Charter.
LTIPs provide Senior Executives with the opportunity to receive equity-linked awards of stock options, Restricted
Stock Units (“RSU”), or warrants based on their achievement of long-term goals. The Board of Directors,
considering the recommendations of the Committee, sets unified performance objectives to measure the
achievement of long-term performance (see “Performance Conditions” below).
Eurofins LTIPs typically include a 4 to 5-year vesting period, which is longer than the average vesting period usually
set forth by its peers. In exceptional cases, LTI instruments awarded to a GOC member upon joining the Group,
often to compensate for similar instruments at their previous employer, may have a shorter vesting period.
Except for stock options granted starting in 2023 (to which a performance condition is inherently included since
there is no guarantee on any capital gain should the share price stay at or below the exercise price), performance
conditions have applied to all other LTIPs awarded to GOC members since 2019.
The performance period shall span over three calendar years beginning on 1
st
January of year N+1 and ending on
31
st
December of year N+3 (“Performance Period”), whereby N is the calendar year in which the LTIP was initially
awarded. After the Performance Period, achievement levels are determined by the Board of Directors with the
support of the Committee and the respective incentive instrument vests according to achievement levels. For more
details, please refer to the Performance Conditions sub-section below.
Rights under Eurofins incentive instruments typically expire after 8 (for warrants) or 10 (for stock option plans)
years after the initial LTIP award date.
In any given year, the maximum value
5
at award date for LTI awarded to any Senior Executive may not exceed
250% of the Annual Base Salary of that Senior Executive (except in rare cases where a GOC member would be
based in a developing country with a base salary calculated in accordance with low local costs of living).
Under the terms of the LTI programmes, GOC members lose their right to exercise non-vested incentive
instruments when their underlying employment contract or directorship is terminated for any reason other than
death or disability. Only the Board of Directors (or the Chairman upon delegation of the Board of Directors) can
decide on exceptions to this condition, in specific and exceptional cases.
5
The valuation of the LTI is based on the exercise price of stock options, which is set by using the Volume Weighted Average Price (VWAP) of the
Company’s shares listed on Euronext Paris stock exchange over the last 20 trading days until the day preceding the time of award plus a hurdle of
2%. The value of one stock option is the exercise price of one stock option divided by 3. The value of one RSU is the exercise price of one stock
option.
REMUNERATION REPORT
189
In the event of a change of control of the Company, the allocation terms and conditions provided for in the respective
LTI instruments would remain unchanged. It is noted that the LTI programme regulations typically provide for
accelerated vesting or early exercise of any LTI instrument in the event of a change of control.
From 2022 onwards the grant process of the LTI award policy was clarified and refined along the following lines:
• Eurofins LTI instruments are awarded in three scenarios: (i) as part of the discretionary periodic award,
(ii) a promotional reward, or (iii) an award upon joining (through recruitment of new leaders or M&A);
• The LTI award process is combined with Eurofins’ Annual Review Process (“ARP”) with the exception of
new hires;
• During the ARP, proposals including rationale for LTI awards in value are made by assessors, in line with
defined standard guidelines and defined as a percentage of Gross Fixed Compensation (“GFC”) within
Annual GFC bands per region.
Performance Conditions
Under this Policy
6
, the performance conditions of the RSUs consist of two financial key performance indicators,
equally weighted at 50% for the calculation of achievement:
• Total Shareholder Return: Eurofins’ relative share price performance including dividends compared with
an index or a peer group selection;
• Earnings Per Share growth: Eurofins’ absolute performance against an internal target as described below.
Performance Condition 1: Total Shareholder Return (“TSR”)
The TSR of Eurofins will be compared to the TSR of the other 119 companies composing the SBF120 index on
Euronext Paris stock exchange over a 3-year reference period. The intention of indexing performance against a
peer group of companies is to reward the relative performance of the Company, where market factors that are
outside the control of the GOC members and the Company are neutralised.
Starting in 2024, the vesting levels for the TSR are defined as follows and illustrated in the chart below:
• 100% vesting if Eurofins is ranked in the top quartile i.e., among the first 30 companies among the 120
companies composing the SBF120 index;
• 50% vesting if Eurofins is ranked at the median i.e., number 60 out of the 120 companies composing the
SBF120 index;
• 25% vesting if Eurofins is ranked at the start of the second quartile, i.e., number 90 out of the 120
companies composing the SBF120 index;
• In between the 30
th
and the 60
th
rank and between the 60
th
and 90
th
rank, a linear interpolation applies;
• Zero vesting if Eurofins is ranked in the lower (first) quartile.
Performance Condition 2: Earnings Per Share (EPS) growth
The compounded annual growth rate of Eurofins’ EPS will be assessed against a pre-defined internal target over
a 3-year reference period (“3-year EPS CAGR”).
Starting in 2024, the vesting levels for the 3-year EPS CAGR are defined as follows and illustrated in the chart
below:
• 100% vesting applies for a target performance at or above 10%;
6
Between 2019 and 2022, the Remuneration Policy applied performance conditions to stock options. Starting in 2023, performance conditions only
apply to RSUs and no longer apply to stock options.
0%
25%
50%
75%
100%
TSR Vesting
TSR Performance relative to index or peer group
1st Quartile 2nd Quartile 3rd Quartile 4th Quartile
REMUNERATION REPORT
190
• 25% vesting applies for a threshold performance set at 5%;
• In between 5% and 10%, a linear interpolation applies;
• Zero vesting if Eurofins’ 3-year EPS CAGR performance is below the 5% threshold;
The Board of Directors has the discretion to modify such performance conditions and allow for partial or full exercise
of incentive instruments in cases of exceptional circumstances beyond the control of the GOC, such as the COVID-
19 pandemic.
RSU packages awarded to a GOC member upon joining the Group, often to compensate similar instruments at
their previous employer, may be exempt from such performance conditions.
Presence condition
Like all other holders of Eurofins LTI instruments, the Senior Executive must have kept the status of executive
officer/director in good standing within the Group under a valid written contract, without interruption from the award
date until the expiration of the vesting or lockup period, whichever is later. Only the Board of Directors (or the
Chairman upon delegation of the Board of Directors) can decide on exceptions to this condition, in specific and
exceptional cases. At expiration of the vesting or lockup period, the Senior Executive shall have full ownership of
the incentive instruments delivered under the LTIP, subject to the fulfilment of share ownership requirements.
Incentive Compensation Clawback Policy
An Incentive Compensation Clawback Policy was introduced by the Board of Directors upon the recommendation
of the Nomination and Remuneration Committee covering both the STI and LTI compensation of Senior Executives
as outlined below.
Purpose
This Incentive Compensation Clawback Policy (the “Policy”) has been adopted by the Board of Directors (the
“Board”) of Eurofins Scientific SE (the “Company” or “Eurofins”) in order to allow the Board of Directors to require,
in specific situations, the reimbursement of Incentive Compensation (as defined below) received by a Senior
Executive (as defined below).
Definitions
For purposes of this Policy, the following terms shall have the meanings set forth below:
“Senior Executive” means any former, current, or future member of the Company’s Board of Directors and of
Eurofins’ Group Operating Council (“GOC”) and any other individual designated by the Board of Directors from
time to time as a “Senior Executive” for the purposes of this Policy;
“Remuneration Committee” means the Nomination and Remuneration Committee of the Board of Directors or such
other committee as the Board of Directors may, from time to time, appoint to oversee the application of the
Company’s executive compensation policies;
“Incentive Compensation” means any compensation under the Company’s short-term and long-term incentive
plans, including bonuses under the short-term incentive for Senior Executives, grants under the Company’s stock
option plans, awards under the Company’s RSU plans, or any other share-based or option-based incentive awards
such as warrants offered for investment;
“Restatement” means an accounting restatement of the Company’s financial statements resulting from any material
non-compliance with any financial reporting requirements under applicable securities laws, other than the
retrospective application of a change or amendment to accounting principles; it also refers to reporting material
0%
25%
50%
75%
100%
EPS Vesting
3-year EPS CAGR
0% 3% 5% 8% 10% 13% 15% 18% 20%
REMUNERATION REPORT
191
misstatements in the financial performance of one or more affiliates of the Eurofins Group under the supervision of
the Senior Executive or reporting materially inaccurate performance metrics or other criteria used in the evaluation
of the Senior Executive’s individual performance in his/her scope of responsibility;
“Wrongful Act” means any gross negligence, intentional misconduct, theft, embezzlement, fraud, or material breach
of Eurofins’ Code of Ethics, Eurofins Code of Conduct, and/or Eurofins Insider Dealing Policy, as they may be
amended from time to time or any other serious misconduct. In particular, the following are considered Wrongful
Acts (i) engaging in conduct which could adversely affect the economic interests, image or reputation of the Eurofins
Group or any of its member companies and/or (ii) activities that result in personal economic conflict with any
member of the Eurofins Group.
Recoupment of Incentive Compensation
In the event of a Restatement or if the Senior Executive has been involved in any Wrongful Act, the Board of
Directors will review all Incentive Compensation paid, granted or awarded to, or received or earned by, or vested
in favour of, the Senior Executive during the Recoupment Period.
The Board of Directors, upon recommendation by the Remuneration Committee, may seek to recoup any Incentive
Compensation paid, granted or awarded to, or received or earned by, or vested in favour of, any current or former
Senior Executive, if and to the extent that the Board of Directors determines that:
• The Senior Executive would not have been entitled, in whole or in part, to the Incentive Compensation if
a Restatement had not been required, or
• The Senior Executive committed or was involved in a Wrongful Act.
Limitation on Recoupment Period
Any recoupment under this Policy shall be in respect of Incentive Compensation paid, granted or awarded to, or
received or earned by, or vested in favour of, any current or former Senior Executive which (i) has not yet been
paid or (ii) has been paid in the twenty-four months immediately preceding the Restatement or discovery by the
Board of Directors of Wrongful Act of the Senior Executive (the “Recoupment Period”).
Sources of Recoupment
Any recoupment under this Policy may be made from any of the following sources: (a) direct reimbursement from
the Senior Executive, (b) deduction from salary, wages and/or future payments, grants or awards of Incentive
Compensation to the Senior Executive, (c) recovering any gain realised on the vesting, exercise, settlement, sale,
transfer or other disposition of equity-based awards, (d) offsetting the recouped amount from any compensation
otherwise owed by the Company to the Senior Executive, (e) cancellation or forfeiture of vested or unvested stock
options, RSUs or any other share-based or option-based incentive awards held by the Senior Executive and/or (f)
taking any other remedial and recovery action permitted by law, as determined by the Board.
Effective Date
This Policy shall be effective as of 1
st
January 2022 (the “Effective Date”) and shall apply to all individuals who
become Senior Executives on or after the Effective Date and to all individuals who were already Senior Executives
before the Effective Date once the latter have ratified an agreement confirming their acceptance of this Policy. The
Policy applies to all Incentive Compensation paid, granted, awarded, received, earned or vested in respect of the
financial year ending 31 December 2021 and all subsequent periods, whether before or after they became Senior
Executives.
Board Authority
All determinations, decisions and interpretations to be made under this Policy shall be made by the Board, or if so
designated by the Remuneration Committee, in which case references herein to the Board of Directors shall be
deemed references to that Committee. Any determination, decision or interpretation made by the Board of Directors
under this Policy shall be final, binding and conclusive to all parties. This Policy may be amended or terminated at
any time by the Board.
No Impairment of Other Remedies
The Board of Directors intends that this Policy be applied to the fullest extent of the law. The Board of Directors
may require that any employment agreement, equity award agreement or similar agreement entered into on or
after the Effective Date shall, as a condition to the grant of any benefit thereunder, require a Senior Executive to
agree to abide by the terms of this Policy. This Policy does not preclude the Company from taking any other action
to enforce a Senior Executive’s obligations to the Company, including termination of employment or directorship,
REMUNERATION REPORT
192
institution of any proceedings or any other remedies or rights of recoupment that may be available to the Company
pursuant to the terms of any similar policy in any employment agreement, equity award agreement or similar
agreement and any other legal remedies available to the Company.
No Indemnification
The Company shall not indemnify any Senior Executives against the loss of any incorrectly awarded Incentive
Compensation.
Severability
In the event any clause or part of this Policy is viewed as unenforceable by any authority or court with jurisdiction
to consider such clause, the clause or part of it shall apply as modified by the authority or court, or in the event it is
not modified by the authority or court, the remainder of this clause and agreement shall continue to be enforceable.
Successors
This Policy shall be binding and enforceable against all Senior Executives and their beneficiaries, heirs, executors,
administrators or other legal representatives and for the individuals who were already Senior Executives before the
Effective Date once they have individually accepted it.
Guidelines on Share Ownership
In line with best practice, Eurofins has had formal share ownership guidelines since 24 October 2019 for GOC
members awarded share-based LTI. GOC members should own ordinary shares in the capital of Eurofins Scientific
SE, which may be acquired in the stock market, or through the exercise of stock options or other awarded incentive
instruments. The Chief Executive Officer of the Company is required to hold 200% of his/her annual net base salary
(i.e., net after-tax fixed compensation excl. benefits in kind) in shares and the other GOC members of the Company
are required to hold 100% of their annual net base salary (i.e., net after-tax fixed compensation excl. benefits in
kind) in shares. Any ordinary shares held or controlled by GOC members shall count towards the determination of
the amount of share ownership. Share ownership does not include any derivative equity instruments nor any
unvested LTI awards other than warrants.
Achievement of Required Share Ownership
The GOC member will have until the later date of (i) five years after effect of this Remuneration Policy (earliest as
of 24 October 2024) or (ii) five years after appointment as a Senior Executive to achieve the share ownership
holding. Until a GOC member’s shareholding has been met, the GOC member must retain 50% of the shares
resulting (after tax) from the vesting of any incentive instrument, provided that GOC members may sell shares to
pay any applicable withholding tax due and acquisition price in connection with the vesting of share settled incentive
instruments.
As long as a GOC member remains in office, he/she must own at least the number of shares of the Company as
determined annually. Once established, the GOC member’s required share ownership will not change as a result
of any fluctuations in the market price of the shares.
Failure to meet Required Share Ownership
Failure by a GOC member to meet or to show sustained progress towards meeting the required share ownership
may result in a requirement to retain all shares obtained through the vesting of incentive instruments. The decision
of the Board of Directors shall be final and binding in all matters relating to these guidelines. The GOC member’s
obligations under these share ownership guidelines are without prejudice to any lock-up or holding periods that
apply to the GOC member under any incentive instrument plan. The Executive Directors hold a controlling
ownership in the Company via their family holding Analytical Bioventures SCA.
Exceptions
There may be rare instances where the share ownership guidelines would place a severe financial hardship on a
GOC member or prevent a GOC member from complying with a court order, such as in the case of a divorce
settlement. Under these circumstances, the GOC member will work with the Board of Directors (or the Chairman
upon delegation from the Board) to develop an alternative share ownership plan that reflects the intention of the
share ownership guidelines. In the event of a change in control of the Company or other exceptional circumstances
as determined by the Board of Directors, the Board of Directors may waive the GOC member’s obligations under
the share ownership guidelines.
REMUNERATION REPORT
193
Other Employment Conditions
Loss of Office
The Chief Executive Officer is not entitled to severance or retirement payments by the Group in case of termination
of his/her mandate.
Executive Directors are not entitled to receive termination or severance payments.
No member of the GOC is entitled to any non-market standard severance or retirement payments by the Group in
case of termination of their contract other than their fixed compensation and pro rata variable compensation for the
duration of the termination period and customary severance, health insurance and retirement benefits as typical
for their seniority in the country where they are employed. No Senior Executive shall receive non-customary
payments triggered in the event of change-of-control, corporate restructuring or spin-off.
Termination
The employment of the Chief Executive Officer of Eurofins can be terminated without notice. The termination /
notice periods of employment contracts with GOC members are typically between three and nine months unless
local law requires a longer termination period. In exceptional cases, where the Company has a particular interest
in prolonging the termination period, or local practices or legal requirements warrant a prolongation of the
termination period, the contract may exceptionally stipulate a termination period of up to twelve months.
However, regardless of the length of the termination period, the termination compensation cannot exceed 24
months’ pay.
Covenants (Confidentiality, Non-Competition, Non-Solicitation)
Employment contracts of GOC members foresee protection of the Company’s information, and client and employee
relationships. GOC members, and more broadly, Senior Executives may be required to refrain from working directly
or indirectly for a competitor in the same business as Eurofins or approach and entice clients or employees away
from the Group. The terms of their employment agreements generally stipulate a term for a non-competition
provision of 12 to 24 months.
6.4 Compensation awarded to the Board of Directors in
2024
This section sets out the compensation that was paid to the members of the Board of Directors in 2024.
In 2024, the Board comprised five independent Non-Executive Directors, one Non-Executive Director and two
Executive Directors. Eurofins’ Chief Executive Officer remained Chairman of the Board of Directors.
In 2024, the compensation for Non-Executive Directors was amended as follows: the annual fixed fee for each
Non-Executive Director was set at €34,000 (vs €33,000 in 2023), the Audit & Risk Committee chairperson was
awarded a committee chair fee of €34,000 (vs €33,000 in 2023), the committee chair fee for the Sustainability and
Corporate Governance Committee chairperson was increased up to €22,000 (vs €16,500 in 2023) and it was
€22,000 (unchanged vs €2023) for the Nomination and Remuneration Committee chairperson, while the annual
fee for committee membership was increased up to €11,300 (vs €11,000 in 2023) for all committees. In addition,
an annual fee of €17,000 was awarded for the role of Lead Independent Director (vs €16,500 in 2023).
The total attendance fees paid to Non-Executive Directors increased from €363,000 in 2023 to €378,100 in 2024,
well within the annual aggregate amount of €450,000 as voted by the AGM of shareholders on 25 April 2024 for
FY 2024. The increase is the result of a general increase of ca. 4% for directorship and committee membership
fees paid to Non-Executive Directors and committee members in 2024.
It should be noted that no compensation was paid by other Group companies to Non-Executive Directors.
Given that Executive Directors are not entitled to Board membership fees, the tables below detail their executive
compensation. In comparison to 2023, the compensation granted in 2024 to Dr Gilles Martin increased due to the
first-time inclusion of short-term and long-term incentive components for CEO compensation (see separate
disclosure under section 6.5) and by 8.6% to Mrs Valérie Hanote.
REMUNERATION REPORT
194
For the years 2024 and 2023, the total gross compensation awarded to the members of the Board of Directors was
as follows:
Board of Directors’ Compensation for the year 2024
EXECUTIVE COMPENSATION
BOARD COMPENSATION
All
amounts
in €
Fixed
compen-
sation
Short-
term
incentives
Benefits
in kind
Supple-
mental
pension
plan
Long-term
incentives
(“Stock
Options”
and/or
RSUs)
Board
atten-
dance fee
(jetons de
presence)
Com-
mittee
atten-
dance fee
(jetons de
presence)
Com-
mittee
chairman-
ship fee
Long-term
incentives
(“Stock
Options”
and/or
RSUs)
Total
compen-
sation
Gilles Martin
1,400,000
1,085,000
20,000
12,000
2,638,000
0
0
0
0
5,155,000
Yves-Loïc
Martin
0
0
0
0
0
34,000
0
0
0
34,000
Valérie
Hanote
391,000
0
20,000
24,000
0
0
0
0
0
435,000
Fereshteh
Pouchantchi
2
0
0
0
0
0
11,333
3,767
0
0
15,100
Patrizia
Luchetta
0
0
0
0
0
34,000
15,067
22,000
0
71,067
Pascal
Rakovsky
0
0
0
0
0
51,000
1
11,300
34,000
0
96,300
Ivo Rauh
0
0
0
0
0
34,000
22,600
0
0
56,600
Evie Roos
0
0
0
0
0
34,000
11,300
22,000
0
67,300
Erica
Monfardini
3
0
0
0
0
0
22,667
15,067
0
0
37,733
1
Including Lead Independent Director fee
2
mandate expired during AGM on 25 April 2024
3
was appointed by the AGM on 25 April 2024
REMUNERATION REPORT
195
Board of Directors’ Compensation for the year 2023
EXECUTIVE COMPENSATION
BOARD COMPENSATION
All
amounts
in €
Fixed
compen-
sation
Variable
compen-
sation
Benefits
in kind
Supple-
mental
pension
plan
Long-term
incentives
(“Stock
Options”
and/or
RSUs)
Board
atten-
dance fee
(jetons de
presence)
Com-
mittee
atten-
dance fee
(jetons de
presence)
Com-
mittee
chairman-
ship fee
Long-term
incentives
(“Stock
Options”
and/or
RSUs)
Total
compen-
sation
Gilles Martin
1,319,000
0
20,000
12,000
0
0
0
0
0
1,351,000
Yves-Loïc
Martin
0
0
0
0
0
33,000
0
0
0
33,000
Valérie
Hanote
366,000
0
10,692
24,000
0
0
0
0
0
400,692
Fereshteh
Pouchantchi
0
0
0
0
0
33,000
11,000
0
0
44,000
Patrizia
Luchetta
0
0
0
0
0
33,000
22,000
16,500
0
71,500
Pascal
Rakovsky
0
0
0
0
0
49,500
1
11,000
33,000
0
93,500
Ivo Rauh
0
0
0
0
0
33,000
22,000
0
0
55,000
Evie Roos
0
0
0
0
0
33,000
11,000
22,000
0
66,000
1
Including Lead Independent Director fee.
The Long-Term Incentive (LTI) instruments held by the Board members as of 31 December 2024 are summarised
in the table below by date of grant:
REMUNERATION REPORT
196
Eurofins Scientific SE – LTI held by Board members as of 31/12/2024
Gilles Martin - Chairman
total
24/10/2019**
16/12/2020**
16/07/2024**
Stock options*
134,230
1,000
1,000
132,230
RSU
11,019
11,019
BSA warrants
nil
Yves-Loïc Martin
total
Stock options
nil
RSU
nil
BSA warrants
nil
Valérie Hanote
total
Stock options
nil
RSU
nil
BSA warrants
nil
Patrizia Luchetta
total
13/12/2017
08/01/2019
24/10/2019**
16/12/2020**
Stock options*
3,900
1,000
1,200
1,000
700
RSU
nil
BSA warrants
nil
Pascal Rakovsky
total
stock options
nil
RSU
nil
BSA warrants
nil
Evie Roos
total
stock options
nil
RSU
nil
BSA warrants
nil
Ivo Rauh
total
stock options
nil
RSU
nil
BSA warrants
nil
Erica Monfardini
total
stock options
nil
RSU
nil
BSA warrants
nil
* please refer to section 6.6 of the Remuneration report for more details on each plan
** with performance conditions
REMUNERATION REPORT
197
6.5 Compensation awarded to GOC members in 2024 and
2023
This section details the compensation awarded to the Chief Executive Officer and the other members of the GOC
in 2024 and 2023. The compensation paid in 2024 and 2023 to the CEO and other members of the GOC is fully
compliant with the Group Remuneration Policy and was discussed by the Nomination and Remuneration
Committee.
6.5.1 CEO compensation earned in 2024 and 2023
Base Gross Fixed Compensation
The following tables summarise the total base gross fixed compensation earned by the CEO in 2024 and 2023.
2024
(in €)
Base gross fixed
compensation
Pension benefits
Other benefits in
kind
Total gross fixed
compensation
Cash
1,400,000
1,400,000
Benefits in kind
12,000
20,000
32,000
TOTAL
1,400,000
12,000
20,000
1,432,000
2023
(in €)
Base gross fixed
compensation
Pension benefits
Other benefits in
kind
Total gross fixed
compensation
Cash
1,319,000
1,319,000
Benefits in kind
12,000
20,000
32,000
TOTAL
1,319,000
12,000
20,000
1,351,000
In addition to the fixed compensation and benefits granted to Dr Gilles Martin, other indirect costs and expenses
were borne by the Group as part of his duties as Chief Executive Officer and Chairman of the Board of Directors,
in accordance with the customary practice at this level of responsibility in other international similarly sized
companies.
Short-term variable compensation
Short-term Incentive (“cash” and “deferred” portion)
As set out in the Group Remuneration Policy, for the first time a Short-Term Incentive (“STI”) was introduced for
the CEO. The opportunity at target is fixed at 100% of the base gross fixed compensation and is determined by the
achievement of financial and personal goals. The table below lists the individual KPIs and the corresponding values
used to determine achievement of each KPI in 2024.
REMUNERATION REPORT
198
KPIs
Values
Achievement
Eurofins Adjusted EBITDA of 2024
(at average FX rates of 2023)
Weighting: 70%
X ≥ €1,575m
100%
€1,550 ≤ X < €1,575
75%
€1,525 ≤ X < €1,550
50%
< €1,525m
0%
M&A (based on 2024 pro forma
annual revenues of companies
acquired in 2024 – transactions
closed or signed)
Weighting: 10%
X ≥ €250m
100%
€200m ≤ X < €250m
75%
€150m ≤ X < €200m
50%
X < €150m
0%
Net working capital intensity at the
end of 2024 (in % of 2024 Group
revenues)
Weighting: 10%
X ≤ 4.5%
100%
4.5% < X ≤ 4.8%
75%
4.8% < X ≤ 5.1%
50%
X > 5.1%
0%
CO
2
emissions in 2024 (in tCO
2
e/FTE)
Weighting: 10%
≤ 7.82
100%
7.82 < X ≤ 7.89
75%
7.89 < X ≤ 8.03
50%
X > 8.03
0%
The table below summarises the actual values, achievements and weightings of each KPI used to calculate the
payout of the CEO’s STI in 2024.
Category
KPIs
Actual
Achievement
Weighting
Payout
Main
Financial
Goals
Eurofins Adjusted
EBITDA of 2024
€1,552
75%
70%
75% x 70%
= 52.5%
Personal
Goals
M&A
€368.4m
100%
10%
100% x 10%
= 10%
Net working capital
intensity at the end of
2024
3.8%
100%
10%
100% x 10%
= 10%
CO
2
emissions in
2024
7.93
50%
10%
50% x 10%
= 5%
TOTAL
77.5%
The table below summarises the STI variable compensation awarded to the CEO for 2024.
2024
(in €)
On target STI variable
compensation opportunity
Actual STI variable
compensation payout earned
Payout ratio
(actual vs target)
Cash
1,400,000
1,085,000
77.5%
Long-term variable compensation
In July 2024, the Board of Directors granted a Long-Term Incentive Plan (“LTIP”). Under this LTIP, a total of 132,230
Stock Options (SO) and 11,019 Restricted Stock Units (RSU) were awarded to the CEO. Half of the SOs and RSUs
awarded under this LTIP will vest after 4 years and half after 5 years respectively. The RSUs are subject to the
achievement of certain performance conditions (see section 6.3.4 of the Group Remuneration Policy for more
details on the performance conditions).
REMUNERATION REPORT
199
As a reminder, the LTIP related to performance in year N are awarded in year N+1. The number of LTI instruments
awarded is based on the exercise price of stock options, which is set by using the Volume Weighted Average Price
(VWAP) of the Company’s shares listed on Euronext Paris stock exchange over the last 20 trading days until the
day preceding the time of award plus a hurdle of 2%. Detailed values of the exercise price of SO plans can be
found in section 6.6.1. Information on RSU plans can be found in section 6.6.3. The values shown in the tables
below reflect the fair value
1
of LTI instruments in accordance with IFRS 9 corresponding to 200% of the CEO’s
base gross fixed compensation during the performance year concerned (N-1).
2024
LTI instruments
Number of LTI awarded
Total value of the grant (in €)
Stock Options (SO)
132,230
2,110,400
Restricted Stock Units (RSU)
11,019
527,600
TOTAL
143,249
2,638,000
Total compensation
The tables below summarise all components of the compensation earned by the CEO in 2024 and 2023
respectively.
2024
(in €)
Gross fixed
compensation
Actual STI
variable
compensation
earned
Value of LTI
grant
Total
compensation
% of total
Cash compensation
1,400,000
1,085,000
2,485,000
48.2%
Benefits in kind
32,000
32,000
0.6%
LTI instruments
2,638,000
2,638,000
51.2%
Total compensation
1,432,000
1,085,000
2,638,000
5,155,000
100.0%
2023
(in €)
Gross fixed
compensation
Actual STI
variable
compensation
earned
Value of LTI
grant
Total
compensation
% of total
Cash compensation
1,319,000
0
1,319,000
97.6%
Benefits in kind
32,000
32,000
2.4%
LTI instruments
0
0
0%
Total compensation
1,351,000
0
0
1,351,000
100.0%
6.5.2 GOC compensation (excluding the CEO) earned in 2024 and 2023
Base Gross Fixed Compensation
The following tables summarise the total base gross fixed compensation earned by the members of the GOC
(excluding the CEO) in 2024 and 2023:
REMUNERATION REPORT
200
2024
(in €)
Base gross fixed
compensation
Pension benefits
Other benefits in
kind
Total gross fixed
compensation
Cash
6,657,604
6,657,604
Benefits in kind
281,158
341,984
623,142
TOTAL
6,657,604
281,158
341,984
7,280,746
2023
(in €)
Base gross fixed
compensation
Pension benefits
Other benefits in
kind
Total gross fixed
compensation
Cash
6,761,000
6,761,000
Benefits in kind
295,965
383,695
679,660
TOTAL
6,761,000
295,965
383,695
7,440,660
From 2023 to 2024, the total gross fixed compensation slightly decreased due to the reduction in the total number
of GOC members (12.5 FTE in 2024 vs 13.7 FTE in 2023) while the average gross fixed compensation, including
benefits in kind, increased by 7.7% (2023: 10.9%) on an FTE basis.
Short-term variable compensation
Short-term Incentive (“cash” and “deferred” portion)
As set out in the Group Remuneration Policy, the Short-Term Incentive (“STI”) for the members of the GOC is
determined by the achievement of main financial and strategic (ESG and non ESG) goals aligned with Group
objectives.
The table below summarises the 2024 and 2023 performance achievements (actual vs target) for the main financial
KPIs. Please note that the target and actual values are not directly comparable to the Group’s financial reporting
due to differences with management reporting (i.e., different assumptions for exchange rates, excludes acquisitions
and divestitures, allocation of central costs, start-ups included only in personal objectives, etc.). Also, the
discrepancy between the values for Eurofins EBITAS proxy and the values for the sum of EBITAS of Leaders’
Scopes of Responsibility is due to overlaps between a few leaders’ scopes, allocation of central costs, etc.
Year
KPIs
Target
Actual
Achievement
2024
Sum of EBITAS of Leaders’
Scopes of Responsibility
€925m
€888m
96.0%
Eurofins EBITAS proxy
€870m
€877m
100.8%
2023
Sum of EBITAS of Leaders’
Scopes of Responsibility
€1,152m
€860m
74.7%
Eurofins EBITAS proxy
€935m
€743m
79.5%
The following tables summarise the 2024 and 2023 performance achievements for GOC members, grouped by
Operational Leaders and Functional Leaders, for key performance indicators relative to targets. As the years 2020-
2023 were affected by the COVID-19 pandemic and ensuing structural reorganisation and refocus, actual results
and/or targets for 2023 were in some cases adjusted upwards or downwards to account for factors outside of the
control of some GOC members.
REMUNERATION REPORT
201
2024 achievement of STI targets for Operational Leaders*
Category
Weighting
KPIs
Average**
Min**
Max**
Main
Financial
Goals
≈ 70%
EBITAS of Leader’s Scope of
Responsibility
92.6%
36.6%
107.1%
Eurofins EBITAS proxy
100.8%
-
-
Personal
Goals
≈ 30%
ESG & non-ESG
47.1%
27.0%
77.5%
Total
80.1%
44.1%
92.3%
* percentages of target achievement are given before corrections of some actuals and targets for unforeseeable events, scope changes, corporate
decisions or relating to central cost allocations or circumstances beyond the control of leaders
** average = weighted achievement for that category between all GOC leaders in scope, min = lowest achievement for that category among the
GOC leaders in scope, max = highest achievement for that category among the GOC leaders in scope
2023 achievement of STI targets for Operational Leaders*
Category
Weighting
KPIs
Average**
Min**
Max**
Main
Financial
Goals
≈ 70%
EBITAS of Leader’s Scope of
Responsibility
73.9%
7.0%
108.1%
Eurofins EBITAS proxy
79.5%
-
-
Personal
Goals
≈ 30%
ESG & non-ESG
48.2%
24.9%
100%
Total
66.9%
30.3%
100.1%
* percentages of target achievement are given before corrections of some actuals and targets for unforeseeable events, scope changes, corporate
decisions or relating to central cost allocations or circumstances beyond the control of leaders
** average = weighted achievement for that category between all GOC leaders in scope, min = lowest achievement for that category among the
GOC leaders in scope, max = highest achievement for that category among the GOC leaders in scope
2024 achievement of STI targets for Functional Leaders*
Category
Weighting
KPIs
Average**
Min**
Max**
Main
Financial
Goals
≈ 20%
Eurofins EBITAS proxy
100.8%
-
-
Personal
Goals
≈ 80%
ESG & non-ESG
75.0%
64.7%
82.6%
Total
80.2%
71.9%
86.2%
* percentages of target achievement are given before corrections of some actuals and targets for unforeseeable events, scope changes, corporate
decisions or relating to central cost allocations or circumstances beyond the control of leaders
** average = weighted achievement for that category between all GOC leaders in scope, min = lowest achievement for that category among the
GOC leaders in scope, max = highest achievement for that category among the GOC leaders in scope
2023 achievement of STI targets for Functional Leaders*
Category
Weighting
KPIs
Average**
Min**
Max**
Main
Financial
Goals
≈ 20%
Eurofins EBITAS proxy
79.5%
-
-
Personal
Goals
≈ 80%
ESG & non-ESG
76.8%
70.4%
85.3%
Total
77.3%
72.2%
84.2%
* percentages of target achievement are given before corrections of some actuals and targets for unforeseeable events, scope changes, corporate
decisions or relating to central cost allocations or circumstances beyond the control of leaders
** average = weighted achievement for that category between all GOC leaders in scope, min = lowest achievement for that category among the
GOC leaders in scope, max = highest achievement for that category among the GOC leaders in scope
The tables below summarise the STI variable compensation awarded to the GOC members (excluding the CEO)
for the 2024 and 2023 performance years, and its comparison with the incentive opportunities.
REMUNERATION REPORT
202
2024
The following table summarises the on target STI variable compensation opportunity and the actual STI variable
compensation earned by GOC members (excluding the CEO) for 2024:
(in €)
On target STI variable
compensation opportunity
Actual STI variable
compensation payout earned
Payout ratio
(actual vs target)
Cash
3,253,121
2,543,576
78.2%
Deferred Variable
Compensation
1,860,263
1,630,409
87.6%
Total
5,113,384
4,173,985
81.6%
2023
The following table summarises the on target STI variable compensation opportunity and the actual STI variable
compensation earned by GOC members (excluding the CEO) for 2023:
(in €)
On target STI variable
compensation opportunity
Actual STI variable
compensation payout earned
Payout ratio
(actual vs target)
Cash
3,337,943
2,343,380
70.2%
Deferred Variable
Compensation
934,724
1,259,626
134.8%
Total
4,272,666
3,603,006
84.3%
There was no signing bonus awarded in 2023 or 2024.
Long-term variable compensation
In July 2024, the Chairman, upon delegation of the Board of Directors, granted a Long-Term Incentive Plan (“LTIP”).
Under this LTIP, a total of 266,553 Stock Options (SO) and 57,939 Restricted Stock Units (RSU) were awarded to
the GOC members (excluding the CEO). Half of the SOs and RSUs awarded under this LTIP will vest after 4 years
and half after 5 years respectively. The RSUs are subject to the achievement of certain performance conditions
(see section 6.3.4 of the Group Remuneration Policy for more details on the performance conditions).
As a reminder the LTIP related to performance in year N are awarded in year N+1. The number of LTI instruments
awarded is based on the exercise price of stock options, which is set by using the Volume Weighted Average Price
(VWAP) of the Company’s shares listed on Euronext Paris stock exchange over the last 20 trading days until the
day preceding the time of award plus a hurdle of 2%. The value of one stock option is the exercise price of one
stock option divided by 3. The value of one RSU is the exercise price of one stock option. Detailed calculations of
the exercise price of SO plans can be found in section 6.6.1. Information on RSU plans can be found in section
6.6.3. The values shown in the tables below reflect the fair value
1
of LTI instruments in accordance with IFRS 9.
2024
LTI instruments
Number of LTI awarded
Total value of the grant (in €)
1
Stock Options (SO)
266,553
4,254,286
Restricted Stock Units (RSU)
57,939
2,774,352
TOTAL
324,492
7,028,638
2023
LTI instruments
Number of LTI awarded
Total value of the grant (in €)
1
Stock Options (SO)
107,368
2,148,581
Restricted Stock Units (RSU)
34,271
2,057,681
TOTAL
141,639
4,206,262
The long-term variable compensation from 2023 to 2024 for GOC members (excluding the CEO) was increased to
align with market practice of having a higher proportion of remuneration at risk for key executives of the Company.
REMUNERATION REPORT
203
Total compensation
The tables below summarise all components of the compensation earned by GOC members (excluding the CEO)
in 2024 and 2023 respectively.
2024
(in €)
Gross fixed
compensation
Actual STI
variable
compensation
earned
Value of LTI
grant
Total
compensation
% of total
Cash compensation
6,657,604
2,543,576
9,201,180
49.8%
Benefits in kind
623,142
623,142
3.4%
Deferred Variable Compensation
1,630,409
1,630,409
8.6%
LTI instruments
7,028,638
7,028,638
38.0%
Total compensation
7,280,746
4,173,985
7,028,638
18,483,369
100.0%
% of total
39.4%
22.6%
38.0%
100.0%
FTE
12.5
12.5
12.5
12.5
Average compensation per FTE
583,450
334,487
563,247
1,481,184
2023
(in €)
Gross fixed
compensation
Actual STI
variable
compensation
earned
Value of LTI
grant
Total
compensation
% of total
Cash compensation
6,760,999
2,343,380
9,104,379
59.7%
Benefits in kind
679,660
679,660
4.5%
Deferred Variable Compensation
1,259,626
1,259,626
8.3%
LTI instruments
4,206,262
4,206,262
27.6%
Total compensation
7,440,660
3,603,006
4,206,262
15,249,928
100.0%
% of total
48.8%
23.6%
27.6%
100.0%
FTE
13.7
13.7
13.7
13.7
Average compensation per FTE
543,114
262,442
307,026
1,110,801
Please note there was also one signing bonus awarded in 2022 payable in 2023 and 2024 with a clawback.
6.5.3 Other Compensation Elements
Severance Payments to members of the GOC
During 2024, severance lump sums were paid to some leaving GOC members for a total amount of €453k which
are excluded from all tables and sections above. Furthermore, no clawback of incentive compensation paid or
awarded to GOC members was exercised in 2024.
Loans to members of the GOC
There were no outstanding loans to any GOC member as of 31 December 2024.
REMUNERATION REPORT
204
6.6 Long-term incentives
6.6.1 Stock Option Plans
In 2024, the Chairman, upon delegation of the Board of Directors, decided to grant one new Stock-Option Plan
(“SOP”) for the benefit of key employees and leaders of the Group. Out of the 1,530,729 stock options awarded
during 2024, the GOC members received 398,783 stock options (including the CEO). The number of stock options
granted and accepted by individual GOC members can be found in a filing dated 11 October 2024 under the
Executives’ Dealings Disclosures section of the Eurofins Investor Relations website. All options awarded in 2024
have an average 4.5-year vesting period (50% of the stock options vest after 4 years and 50% of the stock options
vest after 5 years from the initial award date).
In 2019, Eurofins introduced a hurdle to increase the exercise price of stock options above the Volume Weighted
Average Price (VWAP) of the Company’s shares listed on Euronext Paris stock exchange over the last 20 trading
days until the day preceding the time of award. For all plans awarded on or after 24 October 2019, this hurdle has
been set at 2%.
Since its IPO in 1997, Eurofins’ Board of Directors has awarded 51 stock option plans, of which 14 are still open
as of 31 December 2024. More than 3,400 current or former staff and Directors have benefitted from stock option
plans as of the end of 2024. The number of current employees and business and functional leaders who benefit
from outstanding stock option plans totals 1,491, meaning that 2.4% of Eurofins staff are directly participating in
stock option plans.
The details of the current stock option plans outstanding as of 31 December 2024, with details of grants to members
of the Board of Directors and the GOC, are as follows:
Stock option plans
7
38
th
SOP
39
th
SOP
40
th
SOP
41
st
SOP
42
nd
SOP
43
rd
SOP
44
th
SOP
Date of Board of
Directors meetings (or
Chairman decision)
07/04/2015
22/10/2015
21/01/2016
01/08/2016
04/04/2017
13/12/2017
08/01/2019
Number of options
initially awarded
600,000
352,500
939,200
1,227,400
413,900
1,696,950
2,175,880
incl. options granted to
members of the Board
of Directors in
respective period
0
0
3,600
3,000
0
3,000
3,600
incl. options granted to
members of the GOC
in respective period
(incl. CEO)
156,000
First stock option
exercise date
07/04/2019
22/10/2019
21/01/2020
01/08/2020
04/04/2021
13/12/2021
08/01/2023
Final stock option
exercise date
06/04/2025
21/10/2025
20/01/2026
31/07/2026
03/04/2027
12/12/2027
07/01/2029
Subscription price in €
25.19
28.28
28.63
33.69
40.49
50.87
32.50
Number of options
exercised as of
31/12/2024
94,901
118,000
426,950
496,835
108,850
308,682
419,030
Number of options lost
469,500
222,500
339,950
467,925
218,500
740,700
809,760
Number of valid
options outstanding*
35,599
12,000
172,300
262,640
86,550
647,568
947,090
* considers only valid outstanding options as of 31/12/2024, but not options initially awarded or already exercised
7
LTI instruments awarded before the stock split effective 19 November 2020 have been adjusted by a factor of 10 to reflect the value corresponding
to the pre-split incentive (i.e., number of rights multiplied by ten, exercise price divided by ten)
REMUNERATION REPORT
205
Stock option plans
7
48
th
SOP b)
(conditional)
49
th
SOP a)
(unconditional)
49
th
SOP b)
(conditional)
50
th
SOP a)
(unconditional)
51
st
SOP a)
(unconditional)
Date of Board of
Directors meetings (or
Chairman decision)
20/10/2021
17/10/2022
17/10/2022
05/07/2023
16/07/2024
Number of options
initially awarded
50,000
1,027,813
237,089
764,576
1,530,729
incl. options granted to
members of the Board
of Directors in
respective period
0
0
0
0
0
incl. options granted to
members of the GOC
in respective period
(incl. CEO)
0
0
237,089
107,368
398,783
First stock option
exercise date
20/10/2025
17/10/2026
17/10/2026
05/07/2027
16/07/2028
Final stock option
exercise date
19/10/2031
16/10/2032
16/10/2032
04/07/2033
15/07/2034
Subscription price in €
112.59
62.78
62.78
60.03
47.88
Number of options
exercised as of
31/12/2024
0
0
0
0
0
Number of options lost
50,000
225,948
30,137
89,345
47,437
Number of valid
options outstanding*
0
801,865
206,952
675,231
1,483,292
* considers only valid outstanding options as of 31/12/2024, but not options initially awarded or already exercised
Stock option plans
7
45
th
SOP
46
th
SOP a)
(unconditional)
46
th
SOP b)
(conditional)
47
th
SOP a)
(unconditional)
47
th
SOP b)
(conditional)
48
th
SOP a)
(unconditional)
Date of Board of
Directors meetings (or
Chairman decision)
18/07/2019
24/10/2019
24/10/2019
16/12/2020
16/12/2020
20/10/2021
Number of options
initially awarded
20,000
1,419,250
210,000
1,345,550
147,600
555,700
incl. options granted to
members of the Board
of Directors in
respective period
0
0
4,000
0
4,100
0
incl. options granted to
members of the GOC
in respective period
(incl. CEO)
0
140,000
206,000
0
143,500
0
First stock option
exercise date
18/07/2023
24/10/2023
24/10/2023
16/12/2024
16/12/2024
20/10/2025
Final stock option
exercise date
17/07/2029
23/10/2029
23/10/2029
15/12/2030
15/12/2030
19/10/2031
Subscription price in €
38.58
44.68
44.68
67.50
67.50
112.59
Number of options
exercised as of
31/12/2024
0
92,810
3,500
1,500
0
0
Number of options lost
0
544,130
57,000
581,610
21,900
253,200
Number of valid
options outstanding*
20,000
782,310
149,500
762,440
125,700
302,500
* considers only valid outstanding options as of 31/12/2024, but not options initially awarded or already exercised
REMUNERATION REPORT
206
Further details on stock options, including their valuation methodology and fair values, can be found in note 2.27
“Shareholders’ equity and potentially dilutive instruments” to the consolidated financial statements.
6.6.2 BSA Leaders Warrants
Eurofins has issued BSA leaders warrants on 24 May 2018 that could be purchased by key employees granting
preferential subscription rights to Eurofins shares.
The Chief Executive Officer, acting in the name and on behalf of the Board of Directors in compliance with article
8Bis of Eurofins’ Articles, decided on 24 May 2018 to issue 126,460 non listed BSA (French acronym for “Bons de
Souscription d’Actions”) called “2018 BSA Leaders Warrants” at a purchase price of €34.36 per warrant with
preferential subscription rights reserved to a certain number of executive leaders of the Eurofins Group reflecting
their key management duties and responsibilities and the contribution they may bring to the enhancement of the
value of the shares of Eurofins and their desire to invest in a long-term equity-linked instrument. Following the stock
split enforced on 19 November 2020, each 2018 BSA Leaders Warrant gives the holder the right to subscribe to
ten (10) new Eurofins shares at an exercise price of €529.65 per warrant, representing the issuance of up to
1,264,600 new shares of Eurofins. The exercise period is from 01 June 2022 to 31 May 2026. The Company also
has the possibility to accelerate the exercise of the warrants should its share price (after the ten-for-one stock split
enforced on 19 November 2020) reach €95.34 during this period.
Between 1 January and 31 December 2024, no “2018 BSA Leaders Warrants” were exercised.
Further details on these warrants can be found in note 2.27 “Shareholders’ equity and potentially dilutive
instruments” to the consolidated financial statements.
6.6.3 Restricted Stock Unit (RSU) Plans
As part of the Company’s long-term incentive programme for the GOC and other key personnel, and in addition to
stock option plans and BSA warrants as described above, the Company’s Board of Directors on 29 July 2016 first
granted Restricted Stock Units (RSU), formerly known as “free shares”, to some employees and Directors of Group
affiliates and has set a general framework and defined general “Free Share Plan rules” to that effect.
Since 2016, Eurofins’ Board of Directors has awarded 14 RSU plans, of which 8 are still open as of 31 December
2024. In aggregate, 496current or former staff and Directors have benefitted from RSU plans as of the end of 2024.
The number of current employees and business and functional leaders who benefit from outstanding RSU plans
totals 302, meaning that 0.5% of Eurofins staff are directly participating in RSU plans.
Eurofins’ Chairman, upon delegation of the Board of Directors, decided to grant one new RSU plan in 2024. Out
of the 106,962 RSUs awarded during 2024, GOC members received 68,958 RSUs (including the CEO). The
number of RSUs granted and accepted by individual GOC members can be found in a filing dated 11 October 2024
under the Executives’ Dealings Disclosures section of the Eurofins Investor Relations website. The details of the
current RSU plans outstanding as of 31 December 2024, with details of grants to members of the Board of Directors
and the GOC, are as follows, are as follows:
REMUNERATION REPORT
207
RSU plans
7
th
instalment
8
th
instalment
9
th
instalment
10
th
instalment
11
th
instalment
Date of Board of Directors meetings
(or Chairman decision)
26/06/2020
16/12/2020
24/02/2021
20/10/2021
20/10/2021
Number of RSUs initially awarded
20,200
83,800
91,000
28,350
22,500
incl. RSU’s granted to members of
the Board of Directors in respective
period
0
0
0
0
0
incl. RSUs granted to members of
the GOC in respective period (incl.
CEO)
0
0
0
0
0
Date of delivery of first tranche of
RSUs
26/06/2024
16/12/2024
24/02/2025
20/10/2025
20/10/2023
Date of delivery of second tranche of
RSUs
26/06/2025
16/12/2025
24/02/2026
20/10/2026
20/10/2024
Date of delivery of third tranche of
RSUs
N/A
N/A
N/A
N/A
20/10/2025
Date of delivery of fourth tranche of
RSUs
N/A
N/A
N/A
N/A
20/10/2026
Number of RSUs vested and
delivered as of 31/12/2024
8,700
27,550
0
0
11,250
Number of RSUs lost
3,800
30,825
40,000
13,550
5,625
Number of valid unvested RSUs*
7,700
25,425
51,000
14,800
5,625
* considers only valid outstanding RSUs as of 31/12/2024, but not RSUs initially awarded or already vested
RSU plans
12
th
instalment
13
th
instalment a)
(unconditional)
13
th
instalment b)
(conditional)
14
th
instalment a)
(unconditional)
14
th
instalment b)
(conditional)
Date of Board of Directors meetings
(or Chairman decision)
17/10/2022
05/07/2023
05/07/2023
16/07/2024
16/07/2024
Number of RSUs initially awarded
95,424
25,846
34,271
38,004
68,958
incl. RSU’s granted to members of
the Board of Directors in respective
period
0
0
0
0
0
incl. RSUs granted to members of
the GOC in respective period (incl.
CEO)
0
0
34,271
0
68,958
Date of delivery of first tranche of
RSUs
17/10/2023
05/07/2027
05/07/2027
16/07/2028
16/07/2028
Date of delivery of second tranche of
RSUs
17/10/2024
05/07/2028
05//07/2028
16/07/2029
16//07/2029
Date of delivery of third tranche of
RSUs
17/10/2026
N/A
N/A
N/A
N/A
Date of delivery of fourth tranche of
RSUs
17/10/2027
N/A
N/A
N/A
N/A
Number of RSUs vested and
delivered as of 31/12/2024
1,000
0
0
0
0
Number of RSUs lost
13,785
3,683
5,941
272
14,603
Number of valid unvested RSUs*
80,639
22,163
28,330
37,732
54,355
* considers only valid outstanding RSUs as of 31/12/2024, but not RSUs initially awarded or already vested
REMUNERATION REPORT
208
Further details on these RSU plans can be found in note 2.27 “Shareholders’ equity and potentially dilutive
instruments” to the consolidated financial statements.
6.6.4 Performance conditions
Starting in 2019, performance conditions have been applied to LTIPs awarded to GOC members.
For the RSU plan awarded in July 2024, details about its performance conditions were covered in the Group
Remuneration Policy section of this report. For the stock option plans awarded in December 2020, October 2021,
October 2022 and July 2023, details about their performance conditions can be found in the respective Group
Remuneration Policy sections of the Annual Reports 2020, 2021, 2022 and 2023.
The table below provides an overview of past LTIPs awarded, their applicable reference periods, the resulting
vesting of their applicable performance conditions and the LTI instruments to which the vesting are applied.
As described in Section 6.3.4, the Board of Directors has the discretion to modify such performance conditions and
allow partial or full exercise of incentive instruments in case of exceptional circumstances beyond the control of the
GOC, such as the COVID-19 pandemic.
Vesting of performance conditions
Time of LTIP
award
Reference
period
Applicable LTI
instruments
TSR vesting
EPS vesting
8
Total vesting
December
2020
9
End 2019 to
End 2023
SO
71.7%
75.0%
73.3%
October
2021
9
End 2019 to
End 2024
SO
41.7%
96.7%
69.2%
October
2022
9
End 2019 to
End 2025
SO
Reference period not yet completed
July 2023
End 2023 to
End 2026
RSU only
Reference period not yet completed
July 2024
End 2024 to
End 2027
RSU only
Reference period not yet completed
8
Basic reported EPS has been used for calculating the EPS CAGR to determine vesting of this performance condition.
9
Given the exceptional impact of the COVID-19 pandemic on the TSR development and EPS performance of the years 2020, 2021 and 2022, the
Board of Directors has decided to retain 2019 as the starting point of the reference periods used for both the TSR and EPS vesting performance
conditions for the plans awarded in 2020, 2021 and 2022 and extend the reference period beyond the typical 3-year duration.
EUROFINS SCIENTIFIC SE
209
7 Eurofins Scientific SE, the
Group Parent Company
Eurofins Scientific SE (“Eurofins” or the “Company”) is the parent company of the Eurofins Group. The Company
is governed by Luxembourg law and its registered office is located at 23 Val Fleuri, L-1526 Luxembourg, Grand-
Duchy of Luxembourg and registered under number RCS Luxembourg B 167775.
The Company has a French branch located in Nantes, France, registered with the French Register of Commerce
under the number RCS B 350 807 947. The main purpose of the branch is the management and administration of
French subsidiaries.
An important role of Eurofins as a holding company is to manage its investments and the financing of the activities
of its subsidiaries.
In 2024, Eurofins recorded total financial income of €564.5m, compared to €751.5m in the previous year, of which
an income from participating interests derived from affiliated undertakings of €464.8m in 2024 versus €647.7m in
2023. Operating expenses including staff costs amounted to €6.1m in 2024 compared to €4.4m in 2023. Interest
payable and similar expenses increased to €159.3m compared to €143.3m in the previous year. Value adjustments
in respect of financial assets and of investments held as current assets increased to €45.7m compared to €17.9m
in the previous year. The tax expense in 2024 was €3.2m. Therefore, the Company’s net profit for 2024 stood at
€352.0m, versus a net profit of €585.3m in 2023.
On 31 December 2024, the Company had 6,199,371 own shares for a total net book value of €305.4m.
There were no other material events occurring between the reporting date and the date when the Company’s
annual accounts were approved by the Board of Directors.
The Management report of Eurofins Scientific SE as a parent company needs to be read in conjunction with the
rest of the Management Report for the Group.
The documents that can be legally required by authorised persons (such as shareholders, directors, etc.) are
available at the registered office.
CORPORATE GOVERNANCE
210
8 Corporate Governance
The corporate governance statements that shall legally be included in the management report and notably those
as set forth in the law of 19 May 2006 on takeover bids, as amended (the “Takeover Law”) are disclosed in Part 2
of the Corporate Governance report below and shall be deemed to be part of this management report.
211
Corporate
Governance
CORPORATE GOVERNANCE
212
This first part of the Corporate Governance section of this report shows a verbatim version of the Corporate
Governance Charter of Eurofins as amended by the Board of Directors on 24 February 2025, which reads as
follows:
1 Corporate Governance Charter
of Eurofins
Eurofins Scientific SE (hereinafter referred to as “Eurofins” or the “Company”) has its registered office located in
Luxembourg and its shares are listed in France on the regulated market of Euronext. Together with its direct and
indirect controlled subsidiaries and affiliates, Eurofins Scientific SE is the parent company of the Eurofins Group
(the “Group”). Eurofins falls under the supervision of the Commission de Surveillance du Secteur Financier (the
“CSSF”) in accordance with the law of 11 January 2008 on transparency requirements for issuers of securities, as
amended (the “Transparency Law”) and is also supervised by the Autorité des Marchés Financiers (“AMF”) for the
purpose of the Market Abuse Regulation (EU) No 596/2014 on insider dealing and market manipulation that came
into effect on 3 July 2016 (the “Market Abuse Regulation”).
Eurofins’ corporate governance practices are governed by Luxembourg laws and its articles of association (the
“Articles”).
Eurofins makes efforts to orient its corporate governance towards the general principles of corporate governance
set forth in the Ten Principles of Corporate Governance of the Luxembourg Stock Exchange (available at
https://www.bourse.lu/corporate-governance) (the “Ten Principles”). To the extent applicable, Eurofins also
complies with the provisions of the Law of 24 May 2011 on the exercise of certain rights of shareholders at general
meetings of listed companies, which was amended by the Law of 1 August 2019 implementing EU Directive
2017/828 as regards the encouragement of long-term shareholder engagement (hereinafter defined as the “Law
of 2011”).
The primary purpose of the present Corporate Governance Charter is to consolidate the corporate governance
rules and procedures applied by Eurofins into a single document. The Corporate Governance Charter shall be
updated as often as necessary in order to provide an accurate reflection of Eurofins’ corporate governance
framework and to reflect new rules which may be adopted from time to time by Eurofins in order to enhance its
corporate governance.
CORPORATE GOVERNANCE
213
1.1 Management Structure
The governance structure of Eurofins is composed of the Board of Directors, the Group Operating Council (as
defined below) and a series of committees including an Audit and Risk Committee (the “Audit and Risk Committee”),
a Sustainability and Corporate Governance Committee (the “Sustainability and Corporate Governance
Committee”) and a Nomination and Remuneration Committee (the “Nomination and Remuneration Committee”).
The role of the Board of Directors is one of stewardship, providing the framework for the operations of the Group
Operating Council’s activities.
Once a year, the Board of Directors, as well as its committees, shall conduct a self-evaluation of their composition,
organisation, operations and diversification in order to identify potential areas for improvement.
1.1.1 The Board of Directors
Under Eurofins’ Articles, as supplemented by the internal regulations of the Board of Directors, the Board of
Directors is composed of, and functions, as follows:
Role
The Board of Directors shall be responsible for the management of Eurofins. It is responsible for the performance
of all acts of administration necessary or useful to further the corporate purpose of Eurofins, except for matters
reserved by Luxembourg law or Articles for the general meeting of shareholders.
The core mission of the Board of Directors is the following (non-exhaustive list):
• The Board of Directors shall discuss the Group strategy, significant operational initiatives, and material
investments or divestments, and monitor Group performance;
• The Board of Directors shall ensure the quality of the information provided to shareholders as well as to
the financial markets through the Company’s accounts and financial communication;
• The Board of Directors shall specifically decide on the values and objectives of Eurofins, its strategy and
the key policies required to be adhered to and the level of risk acceptable to Eurofins. It draws up the
annual and half-year consolidated accounts and the annual statutory accounts and budget;
• The Board of Directors shall endeavour to ensure that the necessary financial and human resources are
available to enable Eurofins to reach its objectives;
• The Board of Directors shall draw up the main categories of risks faced by Eurofins, such as financial risk,
strategic risk, operational risk, legal and regulatory risk, reputational risk, and other risks. The Board of
Directors shall determine the risks that require particularly close monitoring;
• The Board of Directors shall draw up a code of business ethics; and
• The Board of Directors shall select Directors for nomination at the general meeting of shareholders.
Composition and Appointment
The Articles provide that the Directors are elected, renewed or removed at the ordinary general meeting of
shareholders by majority of votes cast. The term of office of the Directors shall be determined at the general meeting
of the shareholders of the Company at the time of their appointment. The Directors may always be re-elected.
Other than as set out in the Articles, no shareholder has any specific right to elect, renew or remove Directors. In
the case of a vacancy of office of a Director appointed at the general meeting of shareholders, the remaining
Directors appointed may fill the vacancy on a provisional basis. In such circumstances, the next general meeting
of shareholders shall appoint a Director to fill the vacancy.
The Articles do not require Directors to be shareholders of Eurofins.
The Directors are bound by the Code of Ethics of the Company, and other policies derived therefrom (as outlined
in more detail in “The Eurofins Group Compliance Programme” section below).
The Board of Directors shall endeavour to include a number of independent directors that is at least equal or higher
than the number of non-independent directors.
CORPORATE GOVERNANCE
214
The Board of Directors shall appoint a Chairperson, who shall prepare the agenda for Board meetings. The
Chairperson shall ensure that the procedures relating to the Board meetings, including the preparation of meetings,
deliberations, and the taking and implementing of decisions, are correctly applied.
The Board of Directors has set up an Audit and Risk Committee, a Nomination and Remuneration Committee and
a Sustainability and Corporate Governance Committee. If necessary, the Board of Directors may decide to set up
further committees entrusted with matters determined by the Board of Directors as necessary.
Diversity policy
The Directors shall be selected on the basis of their knowledge, experience and qualification to carry out their
mandate.
The Board of Directors believes in the benefits diversity brings and it recognises that diversity of thought makes
valuable business sense. Having a Board composed of men and women with diverse skills, experience,
background and perspectives means robust understanding of opportunities, issues and risks, inclusion of different
concepts, ideas and relationships, enhanced decision-making and dialogue, and heightened capacity for oversight
of the organisation and its governance.
The diversity policy of the Company’s Board of Directors sets forth the following main objectives:
• Gender diversity: with the ultimate objective to achieve female / male parity, the Board is committed to
ensuring gender diversity and aspires to maintain a Board in which each gender represents at least 40%
of the total number of Board members;
• Age vs seniority: age of Board members is not relevant to the extent they bring the necessary skills and
experience to the Board; however the tenure on the Board shall not exceed ten years for non-executive
independent directors with the objective to ensure rotation of independent directors at regular intervals;
• Qualification: upon consultation of the Nomination and Remuneration Committee, the Board shall aim to
submit for the approval at the Company’s AGM of shareholders the appointment of new Directors who
have the necessary qualification and will bring competences to the Board in the field inter alia of
international expertise, operational and industry expertise, technology / digital expertise, risk management
expertise, financial and human resources expertise as well as Environment, Social and Governance
(ESG) expertise.
The Nomination and Remuneration Committee is responsible for ensuring that the Board has the right balance of
skills, experience and knowledge and, in accordance with its terms of reference, shall:
• Regularly review Board composition, succession planning, talent development and the broader aspects
of diversity;
• Identify suitable candidates for appointment to the Board on merit against required qualifications;
• Report annually in the corporate governance section of the Annual Report on the implementation of the
Board diversity policy and other regulatory and statutory requirements;
• Review the Board diversity policy regularly and recommend any revisions to the Board.
Functioning
The Board of Directors meets when convened by the Chairperson by any means, including verbally or by telephone
in urgent cases. The Board of Directors meets as often as required in the interest of Eurofins and with the frequency
that it deems appropriate, but at least every three months. It meets on the notice of its Chairperson at the registered
office or at any other place indicated in the notice. The Board of Directors shall dedicate an item on the agenda of
one of its meetings, at least once every two years, to discuss its own operation, the effective fulfilment of its remit,
and compliance with good governance rules.
If the Board of Directors has not met for more than two months, one third of the Directors may request the
Chairperson to convene a meeting with a specific agenda. In cases of urgency, any Director is entitled to convene
a meeting. In order for a meeting of the Board of Directors to be validly held, a majority of the Directors must be
present or represented.
In the absence of the Chairperson, the Board of Directors will appoint, by majority vote of the Directors present or
represented at the meeting, a Chairperson for the meeting in question. For any meeting of the Board of Directors,
a Director may designate another Director to represent him or her and vote in his or her name, provided that the
Director so designated may not represent more than one of his or her colleagues at any time.
CORPORATE GOVERNANCE
215
Meetings of the Board of Directors can be held by means of video conference or other telecommunications
technologies permitting the identification of the Directors. Board of Directors meetings held by such means of
communication shall be deemed to be held at the registered office of the Company.
Prior to each meeting, the Directors are entitled to receive all information required for the performance of their
duties and may obtain any documents they consider useful.
Decisions of the Board of Directors are made by a majority of the Directors present and represented at a validly
constituted meeting. Each Director has one voting right and in case of a division of votes, the Chairperson shall
have the casting vote.
Conflict of Interest and Confidentiality
Conflict of Interest
Each Director shall comply with the Group Code of Ethics as referred to in “The Eurofins Group Compliance
Programme” section below and more particularly shall take care to avoid any direct or indirect conflict of interest
with Eurofins or any subsidiary directly or indirectly controlled by Eurofins.
Directors shall inform the Board of Directors of a real or potential risk of a conflict of interest with Eurofins or its
direct or indirect controlled subsidiaries. In the presence of a direct or indirect financial interest conflicting with that
of Eurofins in a transaction which has to be considered by the Board of Directors, the concerned Directors must
advise the Board of Directors thereof and ensure a record of his/her statement be included in the minutes of the
meeting. The Director shall abstain from deliberating or voting on the issue concerned in accordance with applicable
legal provisions. Each Director shall consult the Chairperson of the Sustainability and Corporate Governance
Committee or the Chairperson of the Board of Directors in the event of uncertainty as to the nature of an operation
or transaction likely to create a conflict of interest for him/her.
Each Director shall undertake to dedicate the time and attention required to his/her duties, and to limit the number
of his/her other professional commitments (especially offices held at other companies) to the extent required for
him/her to be able to fulfil his/her duties related to Eurofins properly.
Related Party Transactions
In order to comply with the legal requirements relating to related party transactions pursuant to the requirements
of Article 7 of the Law of 11 July 2011, as amended by the law of 1
st
August 2019, the Board has implemented a
Related Party Transactions Policy. Under this Policy, upcoming related party transactions need to be notified to
the Sustainability and Corporate Governance Committee, which will assess the materiality of the planned
transaction and assess whether the transaction is at arm’s length. Any related party transaction that is considered
material pursuant to the Policy and that is not at arm’s length will need to be approved by the Board of Directors
and will need to be publicly announced, unless exceptions (as defined in the Policy) apply to the case in question.
Confidentiality
During and after their functions, the Directors are strictly bound by a confidentiality commitment regarding the
content of any debates and deliberations at Board of Directors meetings as well as any information they have been
provided as a result of their functions, excluding where such disclosures are required as a legal provision.
As regards information obtained in the course of their duties that has not yet been made public, Directors shall
regard themselves as bound by an obligation of professional secrecy that goes beyond the mere duty of discretion
as stipulated by the relevant laws.
1.1.2 Executive Management of Eurofins
Role
The day-to-day management of Eurofins is entrusted to an executive committee (the “Group Operating Council”)
composed of the operational and functional international business leaders of the Group as listed on the Eurofins
Group corporate website (https://www.eurofins.com/about-us/our-leadership/group-operating-council/), and
presided by a Chief Executive Officer (the “Chief Executive Officer” or “CEO”). The Group Operating Council
provides assistance to the Board of Directors in different specialised areas of expertise.
CORPORATE GOVERNANCE
216
Composition and Appointment
The Chief Executive Officer is appointed by the Board of Directors. In order to not add additional complexity to
corporate governance, the Board of Directors has decided not to separate the functions of Chief Executive Officer
and Chairperson of the Board of Directors.
The Board of Directors sets the duration of his/her term of office, provided that, in case the Chief Executive Officer
is also a Director of the Company, his/her term of office as Chief Executive Officer shall not exceed his/her term of
office as Director. The Chief Executive Officer may be removed at any time by the Board of Directors.
The Board of Directors shall ensure that the members of the Group Operating Council have the skills required to
fulfil their responsibilities.
Approval of Certain Significant Matters
The Group Operating Council meets with the Board of Directors at least once every quarter.
The functions of the members of the Group Operating Council are framed by their objectives, annual budgetary
limits and a monitoring procedure for important decisions which are cascaded down throughout the Group.
In the decentralised model employed by Eurofins, certain important or non-customary decisions are governed by
an approval system. For each level of decision (Managing Director (MD) of a legal entity, National Business Line
Leader (NBLL), Regional Business Line Leader (RBLL) up to GOC leader), the approver of important decisions is
precisely defined and signatures are required.
These important decisions pertain to M&A, site expansion, non-budgeted investments, key personnel
compensation, financing and insurance policies, net working capital management, and certain large transactions
with other companies outside the Group, the Group legal organisation as well as certain general commercial terms.
1.1.3 The Audit and Risk Committee
The Audit and Risk Committee has been established and shall function in accordance with its internal regulations
which are summarised as follows:
Role
The Audit and Risk Committee assists the Board of Directors in carrying out responsibilities in relation to corporate
policies, internal control, risk monitoring, and financial and regulatory reporting practices. The Audit and Risk
Committee has an oversight function and provides a link between the internal and external auditors (“réviseurs
d’entreprises agréés”), and the Board of Directors. The Audit and Risk Committee is assisted as appropriate by the
Group Finance and Administration teams.
Financial Reporting
The Audit and Risk Committee monitors and discusses with the Board of Directors and the external auditor
(“réviseur d’entreprises agréé”) the integrity of the preliminary results, the half-year information and the annual
financial statements, reviewing significant financial and reporting judgments before reporting to the Board of
Directors, focusing particularly on the quality and appropriateness of:
• critical accounting policies and practices;
• financial reporting disclosures and changes thereto;
• areas involving significant judgment, estimation or uncertainty in the Group’s financial results;
• the clarity of disclosures;
• significant implemented adjustments resulting from audit or review;
• compliance with financial reporting standards and relevant financial and governance reporting
requirements;
• monitoring the integrity of other formal announcements relating to Eurofins' financial performance,
reviewing significant financial reporting judgments contained within them; and
• monitoring compliance with statutory and stock exchange requirements for financial reporting.
CORPORATE GOVERNANCE
217
Sustainability Reporting
The Audit and Risk Committee monitors and discusses with management and the external auditor the integrity of
the Annual Sustainability Reporting, in compliance with the Non-Financial Reporting Directive (NFRD) 2014/95/EU,
and in preparation to conform with the European Corporate Sustainability Reporting Directive (CSRD)
2022/2464/UE, dated 14 December 2022, and the amended law of 23 July 2016 on the Audit profession.
To ensure the accuracy and reliability of the Annual Sustainability Reporting, the Committee:
- monitors the effectiveness of the Group’s internal quality control and risk management systems, and
where applicable, its internal audit, regarding the Annual Sustainability Reporting;
- assesses whether the internal controls are designed appropriately and implemented effectively to mitigate
risks and ensure the integrity of the information reported in relation to Sustainability matters ;
- monitors the Sustainability reporting process and its compliance with applicable legal and regulatory
requirements, including the NFRD and in preparation to conform with the CSRD;
- addresses any recommendation issued by the external auditor to improve the Sustainability reporting
process and any comments made by regulatory authorities such as the CSSF.
To carry out its tasks, the Audit and Risk Committee works in close coordination with the Company’s Sustainability
and Corporate Governance Committee.
Internal Controls and Risk Management Systems
The Audit and Risk Committee reviews and makes recommendations to the Board of Directors on the nature and
extent of the significant risks Eurofins is willing to take to achieve its strategic objectives. It shall assist the Board
of Directors to establish a “risk control system”.
The Audit and Risk Committee also reviews Eurofins’ internal financial controls and internal control and risk
management systems, and reviews and reports to the Board of Directors on the statements to be included in the
Annual Report concerning internal control and risk management.
It monitors and reviews the scope, extent and effectiveness of the activity of the Group in relation to compliance
before reporting to the Board of Directors.
The Audit and Risk Committee may also consider management’s response to any material external or internal audit
recommendations, and review management and the internal auditor reports on the effectiveness of systems for
internal control, financial reporting and risk management.
Risk
The Audit and Risk Committee shall advise the Board of Directors on Eurofins’ overall risk appetite, tolerance and
strategy, taking into account the current and prospective macroeconomic and financial environment. This includes
overseeing and advising the Board of Directors on the current risk exposures of Eurofins and future risk strategy.
The Audit and Risk Committee regularly reviews Eurofins’ capability to identify and manage new risk types and
keeps under review Eurofins’ overall risk assessment processes.
Compliance, Whistleblowing and Fraud
The Audit and Risk Committee shall ensure that Eurofins’ guidelines on whistleblowing are observed and shall
review Eurofins’ procedures for detecting fraud.
The Audit and Risk Committee shall keep under review the adequacy and effectiveness of Eurofins’ compliance
function.
Internal Audit
The mission, authority and responsibility of the Group Internal Audit Team (the “GIAT”) are defined in the Internal
Audit Charter (the “IA Charter”).
The Audit and Risk Committee reviews and assesses the annual internal audit plan and ensures that the GIAT has
adequate resources to perform the tasks outlined in the annual plan and any additional ad hoc tasks, and has
appropriate access to information to perform its role effectively. It receives periodic updates on the outcomes and
status of internal audit activity.
The Audit and Risk Committee shall be informed of the GIAT’s work programme and shall receive periodic
summaries of its work. The Audit and Risk Committee may make recommendations regarding the GIAT’s work
programme. It shall monitor the effectiveness of the internal audit function and make sure that the internal auditor(s)
has/have adequate resources to perform the tasks entrusted to it/him/them.
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The Audit and Risk Committee shall make recommendations regarding the selection, appointment, and dismissal
of the Head of the Internal Audit team. In the event that the Head of the Internal Audit team resigns, the Audit and
Risk Committee shall investigate the reasons for that resignation and shall make recommendations regarding any
measures that should be taken.
External Audit
The Audit and Risk Committee reviews and makes recommendations to the Board of Directors to be put to
shareholders for approval at the general meeting in relation to the appointment, re-appointment and removal of the
external auditor (“réviseur d’entreprises agréé”).
The Audit and Risk Committee has oversight with regards to the relationship with the external auditor (“réviseur
d’entreprises agréé”) including discussions about the nature and scope of the audit (including any significant
ventures, investments or operations which are not subject to audit).
The Audit and Risk Committee reviews and monitors the external auditor’s (“réviseur d’entreprises agréé”)
independence and objectivity including its involvement in rendering non-audit services and the effectiveness of the
audit process, taking into account relevant professional and regulatory requirements. This includes reviewing and
monitoring the external auditor’s (“réviseur d’entreprises agréé”) quality control procedures and steps taken by the
external auditor (“réviseur d’entreprises agréé”) to respond to changes in regulation and other requirements.
The Audit and Risk Committee is informed by the external auditor (“réviseur d’entreprises agréé”) on key provisions
of the interim and year-end audit plans and receives summaries of findings and significant matters related to the
audit procedures. The Audit and Risk Committee is also informed on the existing relationship between the external
auditor (“réviseur d’entreprises agréé”) and the Group and monitors compliance with the Eurofins Non-Audit
Services Policy.
The Audit and Risk Committee shall be informed of the external auditor’s (“réviseur d’entreprises agréé”) work
programme and shall receive a report describing all existing relationships between both the external auditor
(“réviseur d’entreprises agréé”) and the Group. The Audit and Risk Committee may submit recommendations
regarding the external auditor’s (“réviseur d’entreprises agréé”) work programme.
Composition and Appointment
The Audit and Risk Committee is composed of at least three members who are appointed by the Board of Directors
for a period which may not exceed their term of office as Directors of the Company. All members of the Audit and
Risk Committee shall be independent and non-executive directors, at least one of the members of the Audit and
Risk Committee shall have recent and relevant accounting experience, and at least one of the members of the
Audit and Risk Committee shall have auditing experience. The Board of Directors shall appoint the Audit and Risk
Committee’s Chairperson.
Functioning
The Audit and Risk Committee shall meet at least once every quarter at appropriate times in the reporting and audit
cycle, and otherwise as required. The Chairperson shall regularly update the Board of Directors about the
Committee’s activities and make appropriate recommendations.
The quorum necessary for the transaction of business shall be two. A duly convened meeting of the Audit and Risk
Committee at which a quorum is present shall be competent to exercise any or all of the authorities, powers and
discretions vested in or exercisable by the Audit and Risk Committee.
The Head of the Internal Audit team or his or her representative shall act as the Secretary of the Audit and Risk
Committee (the “Audit and Risk Committee’s Secretary”).
Meetings of the Audit and Risk Committee shall be called by the Audit and Risk Committee’s Secretary at the
request of any of its members or of the external auditor (“réviseur d’entreprises agréé”), or of the Chairperson of
the Board of the Directors if deemed necessary.
Only members of the Audit and Risk Committee have the right to attend Audit and Risk Committee meetings.
However, the Audit and Risk Committee may invite any other person whose collaboration it considers to be
beneficial to assist it in its work to attend its meetings.
The external auditor (“réviseur d’entreprises agréé”) may be invited to attend meetings of the Audit and Risk
Committee on a regular basis. If deemed appropriate, the Audit and Risk Committee members shall meet with the
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internal and external auditor (“réviseur d’entreprises agréé”) at least once a year without the presence of any
executives of the Company.
The Audit and Risk Committee’s Secretary shall record the minutes of the proceedings and decisions of all
meetings, including the names of those in attendance. The draft minutes of meetings shall be promptly circulated
to all members of the Audit and Risk Committee and circulated to all members of the Board of Directors once
approved.
The Audit and Risk Committee shall make whatever recommendations to the Board of Directors it deems
appropriate on any area within its remit where action or improvement is needed.
The Audit and Risk Committee shall assess the efficiency of its work on a regular basis and shall make
recommendations to the Board of Directors regarding necessary adjustments to its internal regulations.
1.1.4 Sustainability and Corporate Governance Committee
The Sustainability and Corporate Governance Committee has been established and shall function in accordance
with internal regulations which are summarised as follows:
Role
The Sustainability and Corporate Governance (S&CG) Committee shall assist the Board of Directors in carrying
out its responsibilities in relation to good corporate governance and in relation to environmental, social and
sustainability matters.
The Sustainability and Corporate Governance Committee shall assess and evaluate the implementation of key
corporate governance principles and instruments set out in the Eurofins Corporate Governance Charter
(https://www.eurofins.com/investors/corporate-governance/) on the one hand as well as Eurofins’ Mission, Vision
and Values (https://www.eurofins.com/about-us/our-vision-mission-and-values/) and Eurofins’ Group Code of
Ethics (https://www.eurofins.com/about-us/corporate-sustainability/governance/code-of-ethics-and-values/) on the
other hand. It shall also have oversight of areas of corporate sustainability.
It shall review and make recommendations to the Board of Directors on general corporate governance related
matters, assess and evaluate policies, structures and processes implemented to safeguard compliance with laws.
Pursuant to the rules of the Related Party Transaction Policy, it will assess any material transaction where a conflict
of interest or a potential conflict of interest may arise between the Company’s affiliated entities and a related party
and submit such transaction for final approval or rejection to the Board of Directors. As a general role, the
Sustainability and Corporate Governance Committee shall prevent conflicts of interest that affect decisions taken
by the Board of Directors or individual members of the Board of Directors.
On 22 July 2021, the Board of Directors decided to expand the scope and duties of the Sustainability and Corporate
Governance Committee to include environmental and social matters relevant to Group companies and their
stakeholders. The Committee was renamed as the Sustainability and Corporate Governance Committee.
Among other duties, the Sustainability and Corporate Governance Committee shall assess the adequacy, efficacy
and implementation of Eurofins’ corporate sustainability strategy and related ESG performance indicators, including
the Group’s policies and recommendations regarding the environmental impact of its companies’ business activities
and prevention of climate risk. More particularly, the Sustainability and Corporate Governance Committee monitors
and evaluates the Company's ongoing commitment to environmental stewardship, health and safety, corporate
social responsibility, corporate governance and sustainability as relevant to the Company.
In doing so, the S&CG Committee supports the Board’s responsibilities, in compliance with the Non-Financial
Reporting Directive (NFRD) 2014/95/EU, and in preparation to conform with the European Corporate Sustainability
Reporting Directive (CSRD) 2022/2464/UE, dated 14 December 2022, once enforced in national law, of ensuring:
• The incorporation of relevant sustainability and ESG matters into organisational purpose, governance,
strategy, decision-making and risk management, and accountability reporting;
• The understanding and alignment of sustainability and ESG priorities throughout the organisation;
• The identification of appropriate targets and metrics, and the monitoring thereof;
• High quality reporting, with the aim that material sustainability and ESG-related information are disclosed
with the same level of quality and accuracy as financial information.
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Lastly, the Committee shall oversee the preparation and review of the integrated ESG report to be submitted to the
Company’s Board of Directors for formal approval based on the recommendation issued by the Audit and Risk
Committee.
Composition and Appointment
The Sustainability and Corporate Governance Committee is composed of at least three members who are
appointed by the Board of Directors for a period which may not exceed their term of office as Directors of the
Company. All members of the Sustainability and Corporate Governance Committee shall be independent and non-
executive directors. The Board of Directors shall appoint the Sustainability and Corporate Governance Committee’s
Chairperson.
Functioning
The Sustainability and Corporate Governance Committee shall meet at least once a quarter, and otherwise as
required. The Chairperson shall regularly update the Board of Directors about the Committee’s activities and make
appropriate recommendations.
The quorum necessary for the transaction of business shall be two. A duly convened meeting of the Sustainability
and Corporate Governance Committee at which a quorum is present shall be competent to exercise any or all of
the authorities, powers and discretions vested in or exercisable by the Sustainability and Corporate Governance
Committee.
The Committee’s Chairperson can appoint any person to act as the Secretary of the Committee (the “Sustainability
and Corporate Governance Committee’s Secretary”).
Meetings of the Sustainability and Corporate Governance Committee shall be called by the Committee’s
Chairperson or at the request of any of its members.
Only members of the Sustainability and Corporate Governance Committee have the right to attend Committee
meetings. However, the Committee’s Chairperson may invite any other person whose collaboration it considers to
be beneficial to assist it in its work to attend its meetings.
The Sustainability and Corporate Governance Committee’s Secretary shall record the minutes of the proceedings
and decisions of all meetings, including the names of those in attendance. The draft minutes of meetings shall be
promptly circulated to all members of the Sustainability and Corporate Governance Committee and circulated to all
members of the Board of Directors once approved.
The Sustainability and Corporate Governance Committee shall make whatever recommendations to the Board of
Directors it deems appropriate on any area within its remit where action or improvement is needed.
The Sustainability and Corporate Governance Committee shall assess the efficiency of its work on a regular basis
and shall make recommendations to the Board regarding necessary adjustments to its internal regulations.
1.1.5 Nomination and Remuneration Committee
The Nomination and Remuneration Committee has been established and shall function in accordance with internal
regulations which are summarised as follows:
Role
The purpose of the Nomination and Remuneration Committee is to assist the Company’s Board of Directors in
overseeing the nomination and remuneration policies and practices of the Company and its affiliated companies in
order to:
• ensure that these policies and practices enable a formal, rigorous and transparent nomination of Directors;
• fairly and responsibly reward Directors as well as the Chief Executive Officer for their overall and individual
performance;
• oversee the preparation and update of the Remuneration Policy/Report;
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• attract, retain, and secure services and motivate Directors and members of the Group Operating Council
to deliver performance that builds long-term profitability and value creation; and
• align remuneration of Directors (and members of the Group Operating Council) with the Company’s and
shareholders’ strategic interests.
The Nomination and Remuneration Committee is particularly in charge of:
• reviewing and making recommendations to the Board of Directors in relation to the Group Nomination and
Remuneration Policy and the assessment of its effectiveness and its compliance with applicable
standards;
• the individual remuneration levels, and goals and objectives relevant to the remuneration of Directors, the
Chief Executive Officer and other members of the GOC;
• the remuneration structures covered by the Group Remuneration Policy (as set out in the “Group
Remuneration Policy” and “Group Remuneration Report”); and
• the approval of any and all short-term and long-term incentive (including equity-based compensation)
plans of the Group (the long-term incentive plans referred to as “Long-Term Incentive Plans” or “LTIP”) in
accordance with the Group Nomination and Remuneration Policy.
Composition and Appointment
All members of this Committee (including the Chairperson) are independent directors of the Company and free
from any business or other relationship that, in the opinion of the Board of Directors, would materially interfere with
the exercise of their independent judgment as members of the Nomination and Remuneration Committee.
The Nomination and Remuneration Committee shall consist of at least three non-executive members of the Board
of Directors.
Directors of the Nomination and Remuneration Committee are appointed for a period, which may not exceed their
term of office as Directors of the Company.
The Board of Directors shall appoint the Nomination and Remuneration Committee’s Chairperson.
Functioning
The Nomination and Remuneration Committee shall meet at least once a quarter, or more frequently as
circumstances dictate. The Chairperson shall regularly update the Board of Directors about the Committee’s
activities and make appropriate recommendations.
The quorum necessary for the transaction of business shall be two. A duly convened meeting of the Nomination
and Remuneration Committee at which a quorum is present shall be competent to exercise any or all of the
authorities, powers and discretions vested in or exercisable by the Nomination and Remuneration Committee.
The Committee’s Chairperson can appoint any person acting as the Secretary of the Committee (the “Nomination
and Remuneration Committee’s Secretary”).
Meetings of the Nomination and Remuneration Committee shall be called by the Committee’s Chairperson or at
the request of any of its members.
Only members of the Nomination and Remuneration Committee have the right to attend Committee meetings.
However, the Committee’s Chairperson may invite any other person whose collaboration it considers to be
beneficial to assist it in its work to attend its meetings.
The Nomination and Remuneration Committee’s Secretary shall record the minutes of the proceedings and
decisions of all meetings, including the names of those in attendance. The draft minutes of meetings shall be
promptly circulated to all members of the Nomination and Remuneration Committee and circulated to all members
of the Board of Directors once approved.
The remuneration of the CEO is determined by the Board of Directors upon consultation of its Nomination and
Remuneration Committee.
The Remuneration Policy of non-executive directors is defined by the Board of Directors assisted by the Nomination
and Remuneration Committee in compliance with article 7bis(1) of the Law of 24 May 2011 on the exercise of
certain rights of shareholders at general meetings of listed companies, as amended by the Law of 1 August 2019
implementing EU Directive 2017/828 as regards the encouragement of long term shareholder engagement
(hereinafter defined as the “Law of 2011”), which shall be regularly submitted to consultative vote at the Annual
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General Meeting of shareholders. The total amount of remuneration to be awarded to the non-executive Directors
of the Board of Directors is submitted on a yearly basis for approval at the annual general meeting of shareholders.
The Nomination and Remuneration Committee shall assess the efficiency of its work on a regular basis and shall
make recommendations to the Board regarding necessary adjustments to its internal regulations.
1.1.6 Internal Control and Internal Audit
Role
Internal control in Eurofins balances the objectives of the Group, such as maximising shareholder returns through
strong growth in revenues and profits, both organically and by acquisitions, and building barriers to entry through
investment in state-of-the-art technology, while at the same time as managing the risks inherent to the business
and the protection of shareholders’ interests.
Internal control aims to achieve the following objectives:
• Reliability of accounting and financial information;
• Realisation and optimisation of operational decisions;
• Compliance with rules and regulations; and
• Safeguarding the assets of the Group.
Eurofins is the holding company at the head of the Group and has an important role in managing its investments
and the financing of the activities of its subsidiaries, to provide support, to facilitate communication and to develop
resources that are available Group-wide.
The decentralised organisation of the Group, in autonomous clusters and business units, enables the subsidiaries
to make decisions locally and maintain some independence. Strategic choices are determined and approved
centrally.
The internal control process falls within this framework of a decentralised organisation in terms of roles and
responsibilities, policies and procedures. This aims to assure that the Group takes the necessary measures to
manage existing and potential risks to the Group’s financial position and objectives. At an operational level, the
internal control procedures are disseminated by local managers to their teams.
At a functional level, internal control aims to:
• Assure reliable financial statements that provide a true and fair view of Eurofins’ activities, liabilities and
assets;
• Promote better effectiveness by seeking and deploying best practices within the Group and defining the
Directors’ roles and responsibilities as part of the control environment of the Group;
• Encourage support for procedures and any other compulsory or statutory obligation; and
• Assure the protection of the Group’s assets by spot checking the accuracy and reliability of accounting
information during the internal audit reviews: the controls notably focus on the protection of assets,
separation of tasks, adhesion to internal procedures in terms of approval of investment and updating the
property, plant and equipment database.
Functioning
Compliance with the Group’s internal policies and procedures is overseen by the Internal Audit team. Their role is
to ensure that operations are conducted according to high standards by providing an independent, objective
assurance and by advising on best practices. The Group’s internal control and financial procedures are reviewed
and updated on a regular basis and are readily accessible to the relevant employees via Eurofins’ intranet. The
internal audit function supports the Group in accomplishing its objectives by evaluating and improving the
effectiveness of the risk management, control and governance processes.
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1.1.7 Financial Information
Production of Financial Information
One of the main functions of internal control and the Audit and Risk Committee is to ensure that financial statements
provide a true and fair view of Eurofins’ activities. The financial reporting process is managed according to the
Group’s internal reporting systems with dedicated software used by the financial controlling team.
Regular reporting
Each subsidiary or business unit submits a financial report on a monthly basis (income statement, balance sheet
and cash flow) with additional key business metrics highlighted, such as comparable data (budget and prior
periods), working capital ratios and free cash generation.
As well as being able to monitor each business unit’s performance, the controlling and internal control functions
check the consistency and reliability of results, along with the consistent application of correct accounting principles
applied by the different national Finance Directors in accordance with the Group’s accounting policies.
Quarterly statutory consolidation
In addition to monthly reporting, each subsidiary has to produce:
• a quarterly consolidation manual;
• a quarterly review of budgeted KPIs per business unit;
• a quarterly review of the overhead costs (management, sales and marketing, IT, etc.) and capital
expenditures; and
• from time to time (at least on an annual basis), a report - containing profit and loss, balance sheet, cashflow
and change in equity statements - which has been subject to an audit by external auditors (“réviseur
d’entreprises agréé”).
The consolidation documents are approved by the Finance Directors of each country, having vouched for their
accuracy and the reliability of the information contained therein. Dedicated software is used to consolidate this
information and produce financial statements.
Publication of Financial Information
Eurofins publishes its full half-year and annual financial reports with a management report discussing operational
and financial developments in detail, with a full income statement, balance sheet and cash flow statement, as well
as the relevant interim or full notes respectively. Eurofins may also publish preliminary unaudited annual financial
results in a press release if deemed appropriate. In the interest of transparency and to provide sufficient visibility
in terms of its progress, Eurofins also publishes revenue developments for the first and third quarter of the year, as
well as some information on the trading patterns for the period.
Annual Budget Process
Eurofins prepares a formal budget each year, which encourages financial discipline and helps management to plan
activities and allocate resources accordingly. Each business unit submits the following information, which has to
be authorised by the Group Operating Council and the Board of Directors:
• an analysis of the competitive landscape and Key Success Factors;
• an estimated monthly and yearly income statement for the coming year containing:
o revenue and cost projections;
o a detailed plan to monitor the development of personnel costs;
o an itemised budget for capital expenditure;
o operational KPIs;
• a balance sheet and cash flow statement per legal entity with a strong focus on the Days of Sales
Outstanding and Net Working Capital in % of Revenues.
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A mid-term plan with a three-year horizon is drawn up at the same time with a simplified income statement and
specific indicators for each business unit.
1.1.8 The Eurofins Group Compliance Programme
Eurofins has been continuously enhancing the way its business is conducted and governed. A particular focus has
been placed on further improving Eurofins’ governance structure to meet best practice standards on as many levels
as possible. Eurofins’ governing bodies have approved a number of policies that clarify and formalise the conduct
of business both within the organisation and with external stakeholders. These policies, which are referred to as
“Eurofins Core Compliance Documents”, are accessible to the public on https://www.eurofins.com/about-
us/corporate-sustainability/governance/eurofins-core-compliance-documents/
For a detailed summary and explanation of these documents, please refer to the Environmental, Social and
Governance Reporting section of the annual report.
1.1.9 External Control
As required, pursuant to Article 69 of the Luxembourg law of 19 December 2002 on the register of commerce and
companies and the accounting and the annual accounts of undertakings, as amended (the “Trade and Companies
Register Law”), the general meeting of the shareholders of Eurofins shall appoint an external auditor (“réviseur
d’entreprises agréé”) for the audit of the statutory and consolidated annual accounts of Eurofins.
1.2 Shareholder Meetings
The general meeting of shareholders shall have the widest powers to adopt or ratify any action relating to Eurofins.
Ordinary and extraordinary shareholder meetings deliberate in accordance with the conditions of quorum and
majority set forth and the powers expressly granted by law and the Articles.
Ordinary Shareholder Meetings
An ordinary general meeting of shareholders (the “Annual General Meeting”) shall be held annually at the date and
time specified in the convening notice and, without prejudice to any other agenda items, shall in particular approve
the stand-alone and consolidated financial statements. It shall further determine the allocation of the annual result
and consider granting discharge to the Directors for the performance of their duties for the previous financial year.
Extraordinary Shareholder Meetings
Extraordinary General Meetings of shareholders shall be called to deliberate on any decision which results, as a
direct or indirect effect, in a need to amend the Articles of Eurofins.
Notices and Agenda
Shareholder meetings are convened by the Board of Directors, or by any person empowered to do so as set forth
by law.
The shareholder meetings are convened and held in accordance with the conditions set forth by law and the
Articles. The meetings are convened at the registered office or in any other location indicated in the notice.
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Access to Meetings and Voting Rights
Access to Meetings
All shareholders, regardless of the number of shares they own, may attend shareholder meetings and deliberations
in person or via proxy, by providing proof of their identity. Vote by correspondence is also permitted under the terms
and conditions provided for in the Articles. The rights of shareholders to participate and vote at shareholder
meetings are determined in relation to the number of shares held on the date falling 14 days preceding the
shareholder meeting at midnight (Luxembourg time) (the “Registration Date”). To be able to participate in the
shareholder meeting, each shareholder shall notify the Company of its intention to take part in the shareholder
meeting and shall communicate this by post or e-mail to the postal or electronic address indicated in the convening
notice, no later than the date specified by the Board of Directors.
In case the shares are held by the shareholder through a system of payment and delivery of financial instruments,
or in cases where shares are held by a financial intermediary acting as a professional depositary, the shareholder
who intends to participate in the shareholder meeting is required to request a certificate from its intermediary
certifying the number of shares it/he/she holds at the Registration Date and the shareholder must present the
certificate to Eurofins within the deadlines indicated in the convening notice.
The holder of shares may be represented at the general meeting by any intermediary subject to the appointment
of the intermediary by written notification to Eurofins by electronic means or by post as specified in the notice
convening the General Meeting.
The shareholder meetings can be held by way of videoconferencing or any other means of telecommunication, like
the internet, that must enable the identification of shareholders under the terms and conditions set forth by law
currently in force.
Shareholders attending the meeting by videoconferencing or any other means of telecommunication that enables
them to be identified, under the terms and conditions set forth by law, are considered as present to determine the
quorum and majority.
Voting Rights
Each share entitles its holder to one vote.
In addition to shares representing Eurofins’ issued share capital, class A beneficiary units (“parts bénéficiaires de
catégorie A”), class B beneficiary units (“parts bénéficiaires de catégorie B”) and class C beneficiary units (“parts
bénéficiaires de catégorie C”) conferring no right to dividends but a right to one vote will be allocated under certain
conditions to holders of fully paid-up shares as provided for in the Company’s Articles of Association.
10
(articles 12bis.2, 12bis.3 and 12bis.4).
Article 12bis.2:
One Class A beneficiary unit granting one voting right per share shall be allocated to holders of a fully paid-up
share that demonstrate that this share has been registered directly or indirectly (through a depositary or sub-
depositary) in a nominative register made available by the Company for at least three years in the name of the
same holder.
The consideration of the issuance of such Class A beneficiary unit shall be a contribution in kind evidenced by the
registration in a nominative registered account for three consecutive years preceding the issuance date.
Furthermore, the Extraordinary General Meeting has amended on 20 April 2017 the conditions for granting one
Class A beneficiary unit as from 1 July 2017 (included) as follows:
- the shareholder interested by the issuance of Class A beneficiary units up to the number of his/her/its shares
held in a nominative registered account shall apply in writing to the Board of Directors by evidencing such
entry for three consecutive years in the name of the same holder. This request had to be made to the Board
of Directors of the Company no later than on 30 June 2020; and
10
Please note that any quotes from the Articles of Association in English language are non-binding convenience translations
only. For legal purposes, only the French version of the Articles of Association shall be binding.
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- the consideration of an issuance of Class A beneficiary unit shall be a contribution in cash of €0.01 (zero
euro and one cent) per Class A beneficiary unit and a contribution in kind evidenced by the entry in a
registered account of three consecutive years preceding the issuance date.
Furthermore, it shall be stated that shareholders who already own Class A beneficiary units on 30 June 2017 may
decide to keep them under the same conditions or to apply the new conditions applicable as from 1 July 2017 as
detailed above.
In any case, the voting right related to Class A beneficiary units shall cease automatically following the cancellation
of the registration in a nominative registered account by the shareholder concerned or the transfer of ownership
(other than following succession, liquidation of community property between spouses or inter vivos gifts to a spouse
or relative entitled to inherit or a merger or demerger of a shareholder company) of the share for which a beneficiary
unit has been allocated. A beneficiary unit having lost its voting right is automatically cancelled.
Article 12bis.3:
One Class B beneficiary unit may be granted to any holder of a fully paid-up share for which there is evidence of a
direct or indirect entry (through a Depositary or sub-depositary) in a nominative registered account notified to the
Company for five consecutive years in the name of the same holder.
The shareholder interested in the issuance of Class B beneficiary units up to the number of his/her/its shares
entered into a nominative registered account shall apply in writing to the Board of Directors by evidencing such
entry for five consecutive years on behalf of the same holder. This request had to be made to the Board of Directors
of the Company no later than on 30 June 2021.
The consideration of this issuance shall be a contribution in cash of €0.01 (zero euro and one cent) per Class B
beneficiary unit and a contribution in kind evidenced by the entry in a nominative registered account for five
consecutive years preceding the issuance date.
The Extraordinary General Meeting of shareholders has delegated, with power of sub-delegation, to the Board of
Directors all necessary power to verify the existence of the right to receive Class B beneficiary units, ascertain the
full payment in cash and proceed with their issuance in accordance with the conditions laid out in the present
articles of association.
The Class B beneficiary units shall have the same rights and obligations as the Class A and Class C beneficiary
units and, in particular, shall carry one voting right per beneficiary unit without any financial entitlements. Subject
to compliance with the respective conditions of issuance, the same shareholder can be granted beneficiary units
of each Class A, Class B and class C category.
The voting right attached to the Class B beneficiary units shall expire automatically following the cancellation of the
entry into the nominative registered account by the relevant shareholder or the transfer of ownership (other than
as a result of inheritance, liquidation of marital property between spouses or donation inter vivos in favour of a
spouse or relative entitled to inherit or as a result of a merger or demerger of a shareholder company) of the share
for which such beneficiary unit has been granted. A beneficiary unit which has lost its voting right shall be
automatically cancelled.
Article 12bis.4:
One Class C beneficiary unit may be granted to any holder of a fully paid-up share for which there is evidence of a
direct or indirect entry (through a Depositary or sub-depositary) in a nominative registered account notified to the
Company for two consecutive years in the name of the same holder.
The shareholder interested in the issuance of Class C beneficiary units up to the number of his/her/its shares
entered into a nominative registered account shall apply in writing to the Board of Directors by evidencing such
entry for two consecutive years on behalf of the same holder. This request shall be made to the Board of Directors
of the Company no later than on 30 June 2023.
The consideration of this issuance shall be a contribution in cash of €0.01 (zero euro and one cent) per Class C
beneficiary unit and a contribution in kind evidenced by the entry in a nominative registered account for two
consecutive years preceding the issuance date.
The Extraordinary General Meeting of shareholders has delegated, with power of sub-delegation, to the Board of
Directors all necessary power to verify the existence of the right to receive Class C beneficiary units, ascertain the
full payment in cash and proceed with their issuance in accordance with the conditions laid out in the present
articles of association.
The Class C beneficiary units shall have the same rights and obligations as the Class A and Class B beneficiary
units and, in particular, shall carry one voting right per beneficiary unit without any financial entitlements. Subject
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to compliance with the respective conditions of issuance, the same shareholder can be granted beneficiary units
of each Class A, Class B and Class C category.
The voting right attached to the Class C beneficiary units shall expire automatically following the cancellation of
the entry into the nominative registered account by the relevant shareholder or the transfer of ownership (other
than as a result of inheritance, liquidation of marital property between spouses or donation inter vivos in favour of
a spouse or relative entitled to inherit or as a result of a merger or demerger of a shareholder company) of the
share for which such beneficiary unit has been granted. A beneficiary unit which has lost its voting right shall be
automatically cancelled.
1.3 Group Remuneration Policy and Group Remuneration
Report
Eurofins has established a Remuneration Policy for its Directors and its business leaders with the objective of
encouraging behaviour and performance by its leadership that supports the longer-term interests of the Company
and its shareholders, in line with the requirements of the Law of 2011.
In a nutshell, the Remuneration Policy aims to contribute to the long-term oriented strategy and objectives of
Eurofins, in the best interest of the Group, its employees and its external stakeholders, and to its long-term
sustainability. The Eurofins Group Remuneration Policy describes all components of the remuneration, bonus and
advantages which can be granted to its Directors and top executives as well as their relative importance and
contains all disclosures required by the Law of 2011.
The Remuneration Policy is submitted to the consultative vote of the Annual General Meeting following every
material change and, in any case, every four years.
A detailed explanation of the principles and cornerstones of the Remuneration Policy can be found in the Eurofins
Group Remuneration Report, prepared in accordance with the provisions of the Law of 2011 (see the “Eurofins
Group Remuneration Report”). The Eurofins Group Remuneration Report is also submitted to the consultative vote
of the Annual General Meeting and shall remain publicly available, free of charge, on the Eurofins Group website
for a period of ten years (together with the Remuneration Policy, and the date and results of the vote on the
Remuneration Policy). The aim of this Remuneration Report is notably to strengthen Eurofins’ transparency
concerning Directors’ remuneration, Directors’ responsibility and shareholders’ scrutiny rights.
1.4 Share Dealings
Eurofins has enacted a strict policy prohibiting insider dealing (the Eurofins Insider Dealing Policy) applicable to all
employees, Directors and Officers, which aims to ensure Eurofins’ compliance with the applicable rules of the
Market Abuse Regulation; employees who may frequently come across inside information shall have to take an
online training on this Policy at regular intervals.
Under this Policy, Directors, Officers and employees who are in possession of inside information must, for as long
as this information has not been made public, refrain from directly or indirectly entering into (or recommending
others to enter into) any transaction involving the financial instruments of Eurofins and from disclosing such
information to third parties. In addition, Directors and permanent insiders may not trade Eurofins securities during
the following black-out periods:
(i) the continual period starting 30 calendar days before the publication of the annual or half-yearly financial
information and ending the day after the publication of the relevant information;
(ii) the period starting 15 calendar days before the publication of the quarterly financial information and ending
the day after the publication of the relevant information;
(iii) the period starting on the date on which the relevant person becomes aware of inside information and
ending the day after Eurofins publicly releases this information.
The Policy defines inside information as “any information of a precise nature that has not been made public, relating
directly or indirectly to the Eurofins Group or one or more of its Companies, the Company, or one or more Company
Securities, and which, if made public, would be likely to have a significant effect on the price of any of the Company
Securities.”
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Pursuant to Article 19 of the Market Abuse Regulation and the provisions of the Luxembourg law dated 23
December 2016 on market abuse, the persons discharging managerial responsibilities (and persons closely
associated with them) must declare within three working days to the CSSF and to Eurofins the existence of any
and all transactions conducted on their account, such as the acquisition, transfer, subscription or trading, of
Eurofins’ financial instruments. Such obligation is also outlined in more detail in the Eurofins Insider Dealing Policy.
Amended by the Board of Directors on 24 February 2025.
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2 Corporate Governance
Statements for the Year Ended
on 31 December 2024
2.1 Management
2.1.1 Board of Directors
Composition
The Board of Directors is currently composed of eight members, six of whom are non-executive and five of whom
are independent directors. Each year, the Board of Directors reviews the suitability of each of its independent
members according to the Ten Principles of Corporate Governance of the Luxembourg Stock Exchange (available
at https://www.bourse.lu/corporate-governance).
The current members of the Board of Directors are as follows:
- Dr Gilles Martin, *1963 (French national): Chairman of the Board and Chief Executive Officer of the
Eurofins Scientific Group. Dr Martin graduated as a Computer Science Engineer from École Centrale in
Paris, and subsequently obtained a Master of Science from Syracuse University (New York) and a PhD
in Statistics and Applied Mathematics. Since founding the original Eurofins Scientific Nantes food
authenticity testing laboratory in 1987, Dr Martin has expanded the company into a global bioanalytical
group of more than 950 laboratories employing ca. 63,000 staff in 60 countries. Dr Martin was a member
of the Board of Directors of Bruker Corp. (NASDAQ: BRKR), serving as an independent director between
2014 and 2020. He is also a former President of the French Association of private analytical laboratories
(APROLAB), and of the North American Technical Committee for Juice and Juice Products (TCJJP) and
of public bodies supporting innovation and entrepreneurship.
- Dr Yves-Loïc Martin, *1966 (French national): Non-Executive Director. Graduated from École
Polytechnique in Paris, France, and holds a Master’s Degree in Applied Mathematics from University Paris
VI and a PhD in Chemometrics from Institut National Paris Grignon. Dr Yves-Loïc Martin joined Eurofins
as Quality Assurance Manager in 1992 and assumed the role of Chief Technology Officer in 1998 until
2015, where he was instrumental in setting up the Group’s IT infrastructure and solutions. Effective as of
1
st
January 2022, Dr Yves-Loïc Martin became a non-executive director, a Business Angel and early-
stage investor focussed on Deeptech European start-ups. He is Dr Gilles Martin’s brother.
- Valérie Hanote, *1966 (French national): Executive Director. Mrs Hanote is responsible for the Group’s
Internal Commercial Laboratory Information Management System (ComLIMS). Mrs Hanote graduated
from the Paris Institute of technology for life, food and environmental sciences (AgroParisTech), has a
Master’s Degree in Biometry from the University of Reading (UK), and has been with Eurofins since 1991.
Mrs Hanote was Dr Gilles Martin’s spouse.
- Patrizia Luchetta, *1964 (Luxembourg national): Mrs Luchetta was appointed as an independent non-
executive member of the Board of Directors of Eurofins in 2017 and as Chairperson of the Sustainability
and Corporate Governance Committee in 2021. Patrizia Luchetta is a Luxembourg native and has worked
for several years for the Luxembourg Ministry of Economy and Trade, as Head of the Life Sciences and
New Technologies Directorate. In this capacity, she has been instrumental in developing a national
strategy in the field of biomedical sciences as well as in refining the country’s strategic focus regarding
environmental technologies. As part of her position, Patrizia has managed teams both in the ministry and
abroad in Luxembourg’s trade and investment offices. For the past 7 years, she has also been involved
in mentoring middle-level managers who want to improve their career or are considering career changes,
with a focus on women. Her prior work experience includes positions in the food industry, environmental
services, and financial services in Luxembourg, Germany and the U.S. She currently sits on the Board of
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LSH MANAGEMENT GP S.à.r.l.. Patrizia holds a BSc (Hons) in Human Geography and a master’s degree
in social sciences from the Open University (UK), as well as a Master’s Degree in Biotech Management
from IE Business School (Madrid). In 2023, Ms Luchetta has attained a diploma in Environmental, Social
and Governance (ESG) with distinction from the Corporate Governance Institute. She continues to expand
her expertise in ESG and sustainability-related topics, including comprehensive knowledge of key
regulatory frameworks such as the European Corporate Sustainability Reporting Directive (CSRD) and
European Sustainability Reporting Standards (ESRS).
- Pascal Rakovsky, *1959 (Luxembourg national): Mr Rakovsky was appointed as an independent non-
executive member of the Board of Directors of Eurofins and as a Chairman of the Audit and Risk
Committee at the Annual General Meeting held in June 2020. Mr Pascal Rakovsky has been an audit
partner at PwC Luxembourg since 1992, responsible for the coordination of audits of large listed
multinational groups headquartered in Luxembourg, such as RTL Group and Millicom. He was also a
member of the executive committee of PwC Luxembourg as deputy managing partner and head of the
audit practice, with more than 1,000 partners and staff. He has developed strong expertise in IFRS
financial reporting and complex consolidation and accounting matters. Since he retired from PwC
Luxembourg in 2015, he has acted as a director on various Boards of Directors of private companies,
including Alterdomus, a leading provider of integrated solutions for the alternative investment industry and
Foundever, one of the few global players in the customer experience industry. In his capacity as Board
member and Chair of the Audit and Risk Committee, he focuses on interactions with external and internal
auditors, financial reporting, risk management and governance matters. Mr Rakovsky is also engaged in
non-profit organisations supporting education and social inclusion. Mr Rakovsky graduated from the École
Supérieure de Commerce de Paris. He is a qualified auditor (“Réviseur d’Entreprises”) in Luxembourg
and chartered accountant (“Expert-comptable”) in Luxembourg and in France.
• Ivo Rauh, *1959 (German national): Mr Rauh was appointed as an independent non-executive member
of the Board of Directors of Eurofins in 2021. Mr Rauh is a senior management executive with over 30
years’ experience in the field of Testing, Inspection and Certification (TIC), Domestic Appliances and IT
Security. Mr Rauh held several senior management positions for TÜV Nord, among others as Regional
Responsible for Southern Europe, Americas and South Africa, and concluded this activity as CEO of all
international operations of TÜV Nord. From 2012 to 31 March 2021, he served as one of four executive
board members of the largest non-listed TIC company, DEKRA SE. He held responsibility for the full-
service portfolio of the company, including vehicle inspection, industrial inspection, product testing and
certification, audits, consulting, claims and expertise and training, as well as corporate quality,
accreditation, IT and process and service digitalisation. Mr Rauh holds a Master of Science Degree in
Engineering and Business Administration from the Technical University of Darmstadt, Germany and
brings extensive experience to Eurofins’ Board of Directors, its Sustainability and Corporate Governance
Committee and its Nomination and Remuneration Committee.
• Evie Roos, *1967 (Luxembourg national): Ms Roos was appointed as an Independent Non-Executive
member of the Board of Directors of Eurofins and as Chairperson of its Nomination and Remuneration
Committee in 2021. Since 2022, she is a member of Eurofins’ Sustainability and Corporate Governance
Committee. Ms Roos also serves on the Board of Directors of Schréder S.A., the leading independent
outdoor lighting solution provider. She is also a board member of the Luxembourg non-profit Hëllef um
Terrain ASBL and a member of the Remuneration and Nomination Committee of the Luxembourg Institute
of Board members (ILA). Until July 2022, Ms Roos was the Chief Human Resources Officer and a member
of the Senior Leadership Team of SES, the leader in global content connectivity solutions. Prior to this
she held various management positions at ArcelorMittal, the world’s largest steel and mining company,
where she also served on various boards of companies belonging to the ArcelorMittal Group. Ms Roos
holds two degrees in Law and European Studies from the University of Leuven in Belgium and the Europa
Institut in Saarbrücken in Germany. Ms Roos brings extensive legal and human resources experience to
Eurofins’ Board of Directors, its Nomination and Remuneration Committee and its Sustainability and
Corporate Governance Committee. In 2023, Ms Roos successfully passed an ESG-focused course on
“The future of Sustainable Business: Enterprise and the Environment” at the University of Oxford (UK).
• Erica Monfardini, *1971 (Italian national): Ms Monfardini was appointed as an independent non-executive
member of the Board of Directors of Eurofins in April 2024. She is a member of the Company’s Audit and
Risk Committee and Nomination and Remuneration Committee. She also serves as an independent
director on the Boards of the Federation of Luxembourg Industry (FEDIL) Health Corporations and the
International School of Luxembourg. Ms Monfardini combines extensive experience in both science and
business. At Baxter Healthcare, she managed a blockbuster product line across the European market. At
B Medical Systems, she expanded the cold chain business globally, targeting innovative market
segments. During her tenure as Director at PricewaterhouseCoopers, she led strategy, competitive
intelligence, and market access projects for pharmaceutical companies, large foundations, and non-profit
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agencies. She also spearheaded economic development projects for the European Commission and
various global regions, including low and middle-income countries. As Director of Administration and
Finance at the University of Luxembourg, she drove significant institutional transformation. She currently
serves as Director of Administration and Finance at Hëllef Um Terrain, a non-profit organisation in
Luxembourg that provides shelter, food and psychological support to the country's most vulnerable
populations. Ms Monfardini holds a degree in Veterinary Medicine from the University of Milan, Italy, and
a PhD in Physiology and Immunology from the University of Ghent, Belgium.
No legal or disciplinary actions against any of the Directors of the Board (or against companies that the person was
a director of at the relevant time), and that would be relevant to the role that the Directors have undertaken for the
Group, has been taken in the last five years. In the last five years, none of the Directors of the Board have been
an officer of a company that entered into a form of external administration because of insolvency during their time
as an officer in that company or within a 12-month period afterwards. None of the independent non-executive Board
members have been in an operational role at Eurofins before their respective assignment to independent non-
executive Board member.
There is no arrangement or understanding with major shareholders, customers, suppliers or others pursuant to
which the aforementioned persons have been selected as a member of the Board of Directors or senior
management.
C = denotes Chairperson
X = denotes Member
▪ = denotes Independent, Non-executive member
* His/her term of office will expire at the end of the Annual Shareholders’ Meeting called in year Y (see date in the table) to
approve the financial statements for fiscal year ending 31 December Y-1
The Board of Directors aims to be composed of members possessing a wide range of relevant skills, experience
and knowledge that can contribute to Eurofins’ long-term strategic development and objectives, as defined in the
Board’s Diversity Policy. The coverage of the collective 8 members of the Board of Directors with regards to the
targeted experience and expertise is summarised in the following table.
Board of Directors and Committee Memberships in 2024
Name
Board of
Directors
Board
member
since
Appointment
or Renewal
date
Expiry
in year
Y (*)
Audit and
Risk
Committee
Sustainability
& Corporate
Governance
Committee
Nomination
and
Remuneration
Committee
Dr Gilles
Martin
C
1988
25/04/2024
2028
Dr Yves-Loïc
Martin
X
1992
25/04/2024
2027
Valérie
Hanote
X
1990
25/04/2024
2028
Erica
Monfardini ▪
X
2024
25/04/2024
2025
X
X
Patrizia
Luchetta ▪
X
2017
25/04/2024
2026
X
C
Pascal
Rakovsky ▪
X
2020
25/04/2024
2027
C
X
Ivo Rauh ▪
X
2021
27/04/2023
2025
X
X
Evie Roos ▪
X
2021
25/04/2024
2026
X
C
Experience and Expertise of the Board of Directors in 2024
Experience
Expertise
International
Operational and
industry
Technology /
digital
Risk
management
Financial
Human
resources
Environment,
Social and
Governance
7/8
5/8
4/8
2/8
3/8
1/8
2/8
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Lead Independent Director
Eurofins’ Board of Directors has determined that it shall elect a Lead Independent Director from the independent
directors to serve for a minimum of one year. Mr Pascal Rakovsky was renewed as Lead Independent Director in
July 2024 with the following responsibilities, among others:
• Ensuring that the independent non-executive directors can perform their duties under the best possible
conditions and that they are properly informed and briefed prior to Board of Directors meetings;
• Maintaining a regular and open dialogue with the independent directors;
• In coordination with the Sustainability and Corporate Governance Committee, preventing conflicts of
interest from occurring, notably by taking preventive measures to raise awareness of potential conflicts of
interest;
• Consulting with the Chairperson of the Board of Directors and the Nomination and Remuneration
Committee on the selection and admission of new independent directors;
• Participating in the Board’s assessment process;
• Having the authority to call meetings of the independent directors; and
• Being available for consultation and direct communication with shareholders.
Board of Directors’ Meetings for the Year Ended on 31 December 2024
The Board of Directors held nine meetings in 2024 and the average attendance rate of the Directors at the Board
of Directors’ meetings was 94%.
In the course of the meetings held in 2024, discussions concerned, among other topics:
• Strategic and financial information
Including the approval of the annual and semi-annual consolidated financial statements and the parent company’s
statutory accounts, the Group Remuneration Report, the Group ESG report, net profit allocation and dividends,
delegation of authority to update the Company’s articles of association in relation to a capital increase resulting
from the exercise of stock options and warrants and the vesting of restricted stock units, and in relation to the
subscription or cancellation of beneficiary units, decision and delegation of authority to the Chairman to grant new
long-term incentive plans to eligible Directors and employees of the Company and its affiliates, drafting the
management report and resolutions to be submitted to the Annual General Meeting and the Extraordinary General
Meeting of shareholders, convening the Annual General Meeting, the approval / update of some corporate
documents such as the Corporate Governance Charter, the Terms of Reference of the Board committees, the
Related Party Transactions Policy, discussion regarding entering into agreements to acquire significant assets or
companies and entering into new credit facilities, execution of the second share buy-back programme and entering
into a third and a fourth share buy-back programme with professional providers of financial services, review the
budget of the following financial year and the preparation of all relevant documents.
• General corporate governance issues
Including nomination and remuneration of Directors and senior executives, corporate governance practice (number,
terms of reference and composition of Board committees), enterprise risk management (methodology, identification
and monitoring of major risks), ethics and compliance, self-assessment of Board functioning, and dynamics and
values.
The Board also set three priorities for itself in the coming years, with the objective to (i) strengthen the Board
composition in order to foster industry experience and digitalisation / artificial intelligence expertise, (ii) benchmark
the Company’s future CSRD reporting against market practice and (iii) in coordination with the Chief Executive
Officer (CEO) and the Nomination and Remuneration Committee, discuss the CEO succession planning as well as
the adequacy of the composition of the Group Operating Council with the Company’s long-term strategic and
growth objectives.
• ESG
Including Diversity, Equity and Inclusion initiatives, ESG strategy, climate change risks, human capital risks, non-
financial reporting, talent acquisition and retention activity including granting new long-term incentive plans under
amended terms and conditions, completing a double materiality assessment exercise.
• Business operations
Including quarterly business reviews, digitalisation initiatives, IT security and segregation projects, business
continuity plans etc.
All of these decisions were made unanimously by the members of the Board of Directors present or represented.
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Attendance of Board and Committee Meetings in 2024
Name
Board of
Directors
Meetings
Atten-
dance
rate
(%)
Audit and
Risk
Committee
Meetings
Atten-
dance
rate
(%)
Sustainability
& Corporate
Governance
Committee
Meetings
Atten-
dance
rate
(%)
Nomination
and
Remuneration
Committee
Meetings
Atten-
dance
rate
(%)
Dr Gilles
Martin
8/9
89%
Dr Yves-
Loïc Martin
9/9
100%
Valérie
Hanote
6/9
67%
Fereshteh
Pouchantchi
4/4
100%
3/3
100%
Erica
Monfardini
5/5
100%
4/4
100%
3/3
100%
Patrizia
Luchetta
9/9
100%
7/7
100%
5/5
100%
2/2
100%
Pascal
Rakovsky
9/9
100%
7/7
100%
3/3
100%
2/2
100%
Ivo Rauh
9/9
100%
5/5
100%
5/5
100%
Evie Roos
9/9
100%
5/5
100%
5/5
100%
Total
94%
100%
100%
100%
2.1.2 Chief Executive Officer and Group Operating Council
During the Board of Directors’ meeting held in April 2024, Dr Gilles Martin’s appointment as Chairman and Chief
Executive Officer of Eurofins Scientific SE was confirmed until the Annual General Meeting of shareholders to be
held in 2028 to approve the Company’s financial statements for the fiscal year ending on 31 December 2027.
2.1.3 Audit and Risk Committee
Composition
As of 31 December 2024, the Audit and Risk Committee consists of the following members:
• Pascal Rakovsky (Committee Chair)
• Patrizia Luchetta
• Erica Monfardini
Audit and Risk Committee’s Meetings for the Year Ended on 31 December 2024
The Audit and Risk Committee held seven meetings in 2024 and the attendance rate of the Committee members
was 100%.
During 2024, the Audit and Risk Committee reviewed the following topics as part of its duties:
Financial reporting
- Review of the financial reporting process including hard close on interim figures;
- Review of the consolidated financial statements for the full year 2023 and half-year 2024; and
- Recommendation to the Board of Directors for their approval.
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Sustainability reporting
- Monitoring the progress of preparations for CSRD-compliant reporting, including double materiality
assessment, identification of key performance indicators, and evaluation of readiness for publication for
the financial year 2024.
External audit
- Review of Group auditor reports and communications to the Audit and Risk Committee;
- Discussion on finance organisation and performance (with the Group auditor only);
- Review and discussion of the Group management letter issued by the Group auditor;
- Review and approval of Group audit fees for FY 2024;
Review of Group auditor performance for FY 2023.
Risk management, compliance, whistleblowing, and fraud
• Review of the Enterprise Risk Management framework, assessment of the main risk areas including
climate change and ESG related risks;
• Review of the activities of the IT Risk management team;
• Presentation of the Group Internal Control framework and the contribution of the internal audit to its
assessment;
• Review of fraud detection and reporting mechanisms.
Internal audit
• Review of the scope, organisation and independence of the Internal Audit function;
• Review of the execution of the 2024 internal audit plan;
• Review of the conclusions and findings of the internal audit assignments carried out in 2024; and
• Review and approval of the 2025 internal audit plan.
Non-audit services
• Review and approval of the non-audit services carried out by the Group auditor in 2024.
Other
• Business and financial update;
• Pillar 2 impact assessment;
• Meeting with the CSSF to provide an update regarding financial performance, progress on CSRD and
other matters;
• Review of Muddy Waters' reports, review and discussion with management of the Company's responses
to Muddy Waters’ allegations about governance and accounting matters, review of the EY forensic report
of Eurofins’ consolidated cash and cash equivalents as of 31 December 2023;
• Decide on distribution of oversight responsibility for ESG related topics and non-financial reporting
between the Audit and Risk Committee and the Sustainability and Corporate Governance Committee; and
• Review of the conclusions and recommendations for improvement of the annual Audit and Risk
Committee performance assessment.
Audit Scrutiny and Coverage
The Luxembourg société à responsabilité limitée Deloitte Audit registered with the Luxembourg Trade and
Companies Register under number B 65477 was appointed as external auditor of the Company for the statutory
and consolidated financial statements audit of Eurofins for the year ending 31 December 2024, drawn up in
accordance with the Luxembourgish Generally Accepted Accounting Principles (“Luxembourg GAAP”) and
International Financial Reporting Standards as adopted in the European Union (IFRS) respectively.
Eurofins’ Board of Directors endorsed the appointment of Deloitte Audit for the audit of the consolidated and parent
company financial statements for the year ended 31 December 2024, which was approved at the Annual General
Meeting held on 25 April 2024.
Deloitte Audit conducted its audit in accordance with the EU regulation No 537/2014, the Law of 23 July 2016 on
the audit profession and with International Standards on Auditing as adopted for Luxembourg by the Commission
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de Surveillance du Secteur Financier (CSSF). Deloitte Audit issued their unqualified audit reports on 26 February
2025, as presented in the consolidated financial statements, and in the Company’s annual accounts of the 2024
annual report.
For the year ended 31 December 2024, the coverage of Deloitte Audit and other auditors was as follows:
2024 accounts
2023 accounts
Audit coverage for
Consolidated
Financial Statements
Tier 1 & Tier 2
auditors’ coverage for
statutory audits
2
Audit coverage for
Consolidated Financial
Statements
1
Tier 1 & Tier 2
auditors’ coverage for
statutory audits
2
External Sales
71%
99%
71%
97%
EBITDA
98%
99%
94%
98%
Total assets
85%
96%
83%
98%
(1)
Including review by Deloitte Audit of component auditors works
(2)
Tier 1 (PwC, Deloitte, EY, KPMG)
Tier 2 (RSM, Grant Thornton, BDO, Mazars, Moore Stephens, Crowe, Baker Tilly)
In fact, going beyond its legal obligations, in order to ensure reliability and strong control of financial statements in
a fast-growth phase, the Group has commissioned statutory audits in a very large majority of its subsidiaries, even
when not required by local regulation, performed mostly by Tier 1 and Tier 2 auditing firms.
In addition to being the Group auditor and auditing the majority of the Group’s entities, Deloitte Audit performed
statutory audits on all of Group’s Luxembourg companies and holdings for financial year 2024 as sole auditor.
For more information on financial risk management, please refer to the notes to the 2024 consolidated financial
statements (notes 2.30 “Financial risk management” and 2.39 “Auditor’s remuneration”).
2.1.4 Sustainability and Corporate Governance Committee
Composition
As of 31 December 2024, the Sustainability and Corporate Governance Committee consists of the following
members:
• Patrizia Luchetta (Committee Chair)
• Pascal Rakovsky
• Ivo Rauh
• Evie Roos
Sustainability and Corporate Governance Committee’s Meetings for the Period
Ended on 31 December 2024
The Sustainability and Corporate Governance Committee held five meetings in 2024 and the attendance rate of
the Committee members was 100%.
During the meetings, the Sustainability and Corporate Governance Committee discussed sustainability
(Environment, Social and Governance or ESG) and corporate governance related topics relevant to the Eurofins
Group. The Sustainability and Corporate Governance Committee particularly focussed on the following topics:
• Review and approval of the Eurofins 2023 ESG report;
• New or amended lease agreements with related parties;
• Verification that all related party leases have been reviewed;
• Schedule of planned lease amendments and renewals in 2025;
• Discuss ESG strategy alongside the double materiality assessment exercise;
• Discuss feedback received from ESG rating agencies and proxy advisors on Eurofins’ 2023 ESG report
and discuss improvement proposals for the 2024 ESG report;
• Discuss progress made on ESG key metrics and reporting disclosures to be included in Eurofins’ 2024
ESG report;
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• Discuss ESG governance in coordination with the Executive Sustainability Committee;
• Discuss progress made in Diversity, Equity and Inclusion initiatives in 2024;
• Discuss ESG incentives incorporated into the Group purchasing and procurement policy with third parties;
• Follow-up on the draft sustainability reporting standards developed by EFRAG in the context of the gradual
implementation of the European Corporate Sustainability Reporting Directive and the adoption of new
European Sustainability Reporting Standards (ESRS);
• Discuss progress made in relation to the EU Taxonomy and SBTi enrolment;
• Discuss Group Risk management framework with a focus on climate change related risk exposure;
• Discuss ethics and compliance, update on whistleblowing activity in 2024;
• Self-assessment of the internal functioning of the Committee;
• Review of the Company’s Related Party Transactions Policy; and
• Regular review of the Committee’s terms of reference.
On the basis of the above-mentioned work related to related parties performed in 2024, Eurofins’ Board of Directors
believes that there is no conflict of interest between the duties of Eurofins, any of the members of the Company’s
Board of Directors or Group Operating Council, and their respective private interest or other duties. For more
information on related party transactions, please see notes 2.32 “Contractual obligations and other commercial
commitments” and 2.37 “Related-party transactions” to the audited consolidated financial statements.
Eurofins operates on many unique locations (‘sites’) that are often co-located in large campuses. As of the end of
2024, Eurofins occupies more than 2,000 sites throughout the world (laboratories, offices, warehouses, phlebotomy
sites and drop-off points). The total net floor area of these sites amounts to about 1.83 million sqm of which 86%
(1.57 million sqm) are laboratories (+7% vs 2023). The breakdown of ownership is as follows:
• 52.4% (ca. 959,000 sqm) is rented from third-party landlords (2023: 54.4%, 2018: 64.9%);
• 34.5% (ca. 633,000 sqm) is owned by Eurofins (2023: 31.7%, 2018: 19.3%); and
• 13.1% (ca. 240,000 sqm) is rented from related parties (2023: 13.9%, 2018: 15.8%).
As of the end of 2024, annualised rent per sqm for sites leased from third parties stands at €146, in line with those
leased from related parties which stands at €150.
When narrowing the comparison to laboratory sites only (90% of the surfaces leased from related parties), in
countries where lease agreements are made with both third-party landlords and related parties, the annualised rent
per sqm for sites leased from third parties stands at €173, whereas those leased from related parties stands at
€153.
Going forward, especially considering IFRS 16 rules, according to which future lease payments must be accounted
as debt, Eurofins will favour owning buildings used by its laboratories. However, expiring rental agreements may
be renewed if the buildings cannot either be purchased by Eurofins or expanded to allow for building extensions
on existing, rented sites.
2.1.5 Nomination and Remuneration Committee
Composition
As of 31 December 2024, the Nomination and Remuneration Committee consists of the following members:
• Evie Roos (Committee Chair)
• Erica Monfardini
• Ivo Rauh
Nomination and Remuneration Committee’s Meetings for the Year Ended 31
December 2024
The Committee held five meetings in 2024 and the attendance rate of the Committee members was 100%. During
the meetings, the Nomination and Remuneration Committee discussed in particular the following points:
• Review and approval of the Eurofins Group 2023 Remuneration Report;
• Status update on the Annual Review Process (ARP);
• Status on share ownership requirements for GOC members;
• Succession planning for the Chief Executive Officer;
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• Assessment of Board skills and training programme for non-executive directors;
• Review of Board mandates to be renewed at the AGM of shareholders held in April 2024 and discussion
around nominees to be appointed as new non-executive directors at the AGM of shareholders to be held
in April 2025; and design of on-boarding plan for new non-executive director appointed in 2024;
• Assessment and review of Lead Independent Director (LID) role and recommendation on LID renewal;
• Discussion and proposal of improvements to the Eurofins Group 2024 Remuneration Report;
• Preparation of the Eurofins Group 2024 Remuneration Report, review of Group remuneration policy
including the introduction of new short-term and long-term incentives for the Chief Executive Officer and
related detailed objectives for the 2024 STI opportunity;
• Review of general rules and other contractual documentation of future Stock Option and Restricted Stock
Unit (RSU) Plans to be awarded by the Company;
• Benchmark analysis of the compensation package of the members of Eurofins’ Group Operating Council
against that of peer companies in the Testing, Inspection and Certification industry, including ESG-related
targets incorporated in the Short-Term Incentive (STI) objectives of GOC members;
• Talent acquisition, mobility and succession planning of senior executives;
• Review of human capital related key risks and mitigation plans;
• Review of Eurofins’ training policy;
• Self-assessment of the internal functioning of the Nomination and Remuneration Committee, internal
objectives and roadmap to be set by the Committee for itself in 2025; and
• Regular review of the Committee’s terms of reference.
2.2 Shares and Shareholders
2.2.1 Share capital
As of 31 December 2024, the Company’s share capital amounts to one million, nine hundred and twenty-nine
thousand, eight hundred and eleven Euros and eighty-three Eurocents (€1,929,811.83) divided into one hundred
and ninety-two million, nine hundred and eighty-one thousand, one hundred and eighty-three (192,981,183)
ordinary shares of one cent (€0.01) of nominal value each, all of the same category.
There are no charges attached to shares of the Directors of the Company. As explained in more detail in the
Eurofins Group Remuneration Policy, Eurofins has a minimum shareholding requirement for all members of the
Group Operating Council.
Potential Increases in Share Capital
Stock Options
See section 6.6 “Long-term incentives” of the “Eurofins Group Remuneration Report”.
BSA Leaders’ Warrants
See section 6.6 “Long-term incentives” of the “Eurofins Group Remuneration Report”.
Restricted Stock Units (RSUs), formerly known as “Free Shares”
See section 6.6 “Long-term incentives” of the “Eurofins Group Remuneration Report”.
Authorised and Non-Issued Capital
On 25 April 2024, the shareholders approved (i) the renewal for five additional years (from 3 May 2024, the date
of publication of the notarial deed recording the Extraordinary General Meeting in the Recueil Electronique des
Sociétés et Associations, until 3 May 2029) of the authorisation granted to the Board to increase the Company’s
share capital and (ii) the increase of the authorised share capital to a maximum nominal value of €3,500,000
(represented by 350,000,000 shares having a nominal value of €0.01 per share) under the terms and conditions
that the Board of Directors may determine. The Board of Directors may, in particular, limit or waive the preferential
subscription rights reserved for existing shareholders.
Moreover, the Company has issued:
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• BSA warrants (see 6.6 “Long-term incentives” of the “Eurofins Group Remuneration Report”);
• Stock option plans (see 6.6 “Long-term incentives” of the “Eurofins Group Remuneration Report”);
• RSU plans (see 6.6 “Long-term incentives” of the Eurofins Group Remuneration Report”).
giving access to existing and/or new Eurofins shares to key employees and leaders of the Group.
As of 31 December 2024, the maximum number of new shares that may be issued resulting from the exercise of
BSA Warrants, RSUs and stock options is 8,816,936, resulting in a total potential fully diluted number of shares of
201,798,119.
Consequently, the additional maximum number of new shares that could be issued by Eurofins within the limit of
the authorised share capital is 148,201,881.
Besides this, new shares issued as well as Eurofins’ existing shares could be listed, in addition to the Paris Stock
Exchange, on any other foreign Stock Exchange to be determined by the Chairperson of the Board on the basis of
a mandate given by the Board of Directors.
2.2.2 Shareholding Disclosure
The Martin family, through direct shareholdings and indirectly through their shareholding in Analytical Bioventures
SCA, which is controlled by Dr Gilles Martin, holds 32.8% of the shares with 67.0% of the voting rights in Eurofins
as of 31 December 2024.
The free float represents 63.9% of the shares and 32.9% of the voting rights of the Company. In addition, the
Company held 6,199,371 of its own shares representing 3.2% of the total share capital as of 31 December 2024
(see section 2.3.9 for more details).
The detail of the different shares and voting rights held by the shareholders of Eurofins is as follows:
Shareholders and voting rights as of 31 December 2024
SHAREHOLDERS
SHARES
SHARES
%
VOTING
RIGHTS
(attached to
shares)
VOTING
RIGHTS
(attached to
Beneficiary
Units Class
A)
VOTING
RIGHTS
(attached to
Beneficiary
Units Class
B)
VOTING
RIGHTS
(attached to
Beneficiary
Units Class
C)
TOTAL
VOTING
RIGHTS
%
TOTAL
VOTING
RIGHTS
Dr Gilles Martin
10
0.0%
10
10
0
0
20
0.0%
Dr Yves-Loïc Martin
(1)
145,460
0.1%
145,460
0
0
0
145,460
0.0%
Valérie Hanote
10
0.0%
10
10
0
0
20
0.0%
Analytical
Bioventures SCA (2)
63,379,111
32.8%
63,379,111
63,000,000
63,000,000
63,000,000
252,379,111
67.0%
Martin Family
(subtotal)
63,524,591
32.9%
63,524,591
63,000,020
63,000,000
63,000,000
252,524,611
67.1%
Treasury shares
6,199,371
3.2%
0
0
0
0
0
0.0%
Free Float
123,257,221
63.9%
123,257,221
648,012
0
0
123,905,233
32.9%
Total
192,981,183
100.0%
186,781,812
63,648,032
63,000,000
63,000,000
376,429,844
100.0%
(1) Held through his private company Deeperly
(2) Private company incorporated in Luxembourg and controlled by Dr Gilles Martin
2.2.3 General Meetings of Shareholders held in 2024
The Annual General Meeting of shareholders held on 25 April 2024 in its ordinary form, adopted inter alia the
following resolutions:
(i) Approval of the consolidated financial statements for the financial year ended 31 December 2023 and of
the annual statutory accounts of the Company for the financial year ended 31 December 2023;
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(ii) Allocation of results for the financial year ended 31 December 2023;
(iii) Discharge granted to the members of the Board of Directors for the performance of their duties as of 31
December 2023;
(iv) Discharge granted to Deloitte Audit, external auditor, for the execution of their assignment for the financial
year ending 31 December 2023;
(v) Non-binding consultative vote on the remuneration policy embedded in Eurofins’ 2023 Remuneration
Report;
(vi) Non-binding consultative vote on other sections of Eurofins’ 2023 Remuneration Report including annual
disclosures;
(vii) Renewal of the appointment of Mr Gilles Martin for four years as an executive director;
(viii) Renewal of the appointment of Mr Yves-Loïc Martin for three years as a non-executive director;
(ix) Renewal of the appointment of Ms Valérie Hanote for four years as an executive director;
(x) Renewal of the appointment of Mr Pascal Rakovsky for three years as an independent director;
(xi) Renewal of the appointment of Ms Patrizia Luchetta for two years as an independent director;
(xii) Renewal of the appointment of Ms Evie Roos for two years as an independent director;
(xiii) Appointment of Ms Erica Monfardini for one year as an independent director;
(xiv) Appointment of Deloitte Audit as external auditor for the execution of their assignment for the financial
year ended 31 December 2024;
(xv) Approval of attendance fees for Board members up to 450,000 euros for the fiscal year 2024;
(xvi) Approval of the summary report from the Board of Directors about the execution of the share buy-back
programme in 2023; and
(xvii) Approval of the authorisation to be granted for five years to the Board of Directors to purchase the
Company’s own shares in the context of a new share buy-back programme.
The Annual General Meeting of shareholders held on 25 April 2024 in its extraordinary form, adopted inter alia the
following resolutions:
(i) Approval of the authorisation to be granted for five years to the Board of Directors to cancel shares and
consequently to reduce the Company’s share capital resulting from a decision to cancel shares purchased
in the context of the Company’s share buy-back programme;
(ii) Renewal for five years of the Company’s authorised capital along the terms defined in article 8bis of the
Company’s articles of association.
2.3 Annual Statements in Relation to the Takeover Law
2.3.1 Share Capital Structure
Please see above section 2.2.1 “Share capital”.
2.3.2 Shareholder Purchase/Sale Agreement
With regard to article 11 (1)(b) of the Takeover Law, the shares issued by Eurofins are listed on Euronext Paris
and are freely transferable.
A shareholders’ agreement regarding the Martin family’s shareholding in Analytical Bioventures SCA was
concluded on 20 April 2017, which cancels and replaces the preceding agreement and aims principally to renew
the ongoing commitment towards the present management of Eurofins and promote co-operation on a course of
action in the event of a take-over bid. This agreement remains valid for a term of eight years, tacitly renewed each
year.
2.3.3 Significant Shareholdings
With regard to article 11 (1)(c) of the Takeover Law, Eurofins’ shareholding structure showing each shareholder as
owning 2.5% or more of Eurofins’ share capital as far as they formally disclosed to the Company is as follows:
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Significant Shareholding as of 31 December 2024
No. of Shares
No. of Stock Options
outstanding
No. of Restricted Stock
Units (RSU)
Dr Gilles Martin
Dr Yves-Loïc Martin
Valérie Hanote
Patrizia Luchetta
Pascal Rakovsky
Ivo Rauh
Evie Roos
Erica Monfardini
10
145,460
10
0
0
0
600
0
134,230
0
0
3,900
0
0
0
0
11,019
Analytical Bioventures SCA, which is controlled by Dr Gilles Martin, holds 63,379,111 shares.
Eurofins has not been formally notified of any shareholder other than those stated above with an interest in excess
of 5% of total voting rights as of 31 December 2024.
T. Rowe Price Associates, Inc. informed Eurofins that, as of 16 September 2024, Advisory Clients owned 4,819,069
shares, representing 2.49% of the outstanding share capital of Eurofins.
2.3.4 Holders of Any Securities with Special Control Rights
With regard to article 11 (1)(d) of the Takeover Law, in addition to shares representing Eurofins’ issued share
capital, a Class A beneficiary unit, (« part bénéficiaire de catégorie A») which confers no right to dividends but a
right to one vote, is allocated to holders of fully paid-up shares for which proof is provided of registration in the
name of the same shareholder for at least three consecutive years as provided for in the Company’s Articles of
Association.
In case of a capital increase by incorporation of reserves, profits or share premium, the existing holders of
beneficiary units will be entitled to additional Class A beneficiary units following the issuance of new shares.
The Annual General Meeting of Shareholders held on 20 April 2017 adopted changes to article 12bis of the
Company’s Articles of Association, in particular relating to Class A beneficiary units. Since 1 July 2017, Class A
beneficiary units, which confer no right to dividends but a right to one vote, can be allocated to holders of fully paid-
up shares for which (i) proof is provided of registration in the name of the same shareholder for at least three
consecutive years as provided for in article 12bis.2 of the Company’s Articles of Association (ii) request to subscribe
Class A beneficiary units was sent in writing by the relevant shareholder to the Company at the latest by 30 June
2020 and (iii) subject to the Company receiving payment of a subscription price of €0.01 per Class A beneficiary
unit.
The Shareholders’ extraordinary meeting held on 19 April 2016 also authorised the issuance until 30 June 2021 of
new Class B beneficiary units (“parts bénéficiaires de catégorie B”) which confer no right to dividends but a right to
one extra vote for each share of the Company held by holders of fully paid-up shares continuously held under
registered form evidencing a holding of at least five (5) years as provided for in article 12bis.3 of the Company’s
Articles of Association.
In case of a capital increase by incorporation of reserves, profits or share premium, the existing holders of Class B
beneficiary units will be entitled to additional Class B beneficiary units following the issuance of new shares.
The Shareholders’ extraordinary meeting held on 22 April 2021 also authorised the issuance until 30 June 2023 of
new Class C beneficiary units (“parts bénéficiaires de catégorie C”) which confer no right to dividends but a right
to one vote per beneficiary unit, to be allocated to the holder of fully paid-up shares of the Company continuously
held under nominative registered form evidencing a holding of at least two (2) years as provided for in article 12bis.4
of the Company’s Articles of Association.
In cases of capital increase by incorporation of reserves, profits or share premium, the existing holders of Class C
beneficiary units will be entitled to additional Class C beneficiary units.
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2.3.5 System of Control of Any Employee Share Scheme
With regard to article 11 (1)(e) of the Takeover Law, information on stock-options, restricted stock units and BSA
warrants is available in section 2.2.1 “Share capital” as well as in notes 2.6 “Share-based payment charge and
acquisition related expenses, net” and 2.27 “Shareholders’ equity and potentially dilutive instruments” to the audited
consolidated financial statements.
2.3.6 Restrictions on Voting Rights
A sanction of suspension of voting rights can be applied to any shareholder (or group of shareholders acting jointly)
who has (or have) crossed the thresholds set out (i) in article 10.3 of the Articles (2.5% or any multiple of 2.5% of
the Company’s share capital, voting rights or securities giving access to the share capital of the Company) (ii) and
in article 8 (1) of the Transparency Law dated 11 January 2008 (i.e., 5%; 10%; 15%; 20%; 25%; 33 1/3%; 50% and
66 2/3%) without having notified Eurofins accordingly and subject to limited exceptions set out in article 8 of the
Transparency Law.
Such suspension can be requested by any shareholder holding at least 2.5% of the Company’s share capital and
shall be applicable to voting rights above the thresholds indicated in the Transparency Law and the Articles and for
a period of two years, as set out in article 10.3 of the Articles.
2.3.7 Agreements between Shareholders
With regard to article 11 (1)(g) of the Takeover Law, there are agreements between shareholders in place as
detailed in paragraph “Shareholder Purchase/Sale Agreement” above.
2.3.8 Appointment and Replacement of Board Members – Amendment
of the Articles
With regard to article 11 (1)(h) of the Takeover Law, the Directors are elected by the ordinary Annual General
Meeting of shareholders for terms as set by the relevant resolution for each Director and may be re-elected or
removed.
As provided for in article 13 of the Company’s Articles of Association, the Board of Directors is authorised to co-
opt ad interim a new member in case of vacancy of a directorship position, to be endorsed by the next upcoming
ordinary Annual General Meeting of shareholders.
The rules governing amendments to Eurofins’ Articles are set out in article 20 of Eurofins’ Articles. An Extraordinary
General Meeting, resolving as hereinafter provided, may amend any provisions to Eurofins’ Articles.
Such an Extraordinary General Meeting shall not validly deliberate unless at least one half of the share capital is
present or represented. If this condition is not satisfied, a second meeting may be convened and shall validly
deliberate regardless of the proportion of the capital present or represented. At any Extraordinary General Meeting,
resolutions, in order to be adopted, must be carried by at least two-thirds of the votes cast. Votes cast shall not
include votes relating to shares in respect of which the shareholder has not taken part in the vote or has abstained
or has returned a blank or invalid vote.
2.3.9 Share Repurchase Programme
With regard notably to article 11 (1)(i) of the Takeover Law, the Annual General Meeting of shareholders held on
25 April 2019 granted the Board of Directors a new share repurchase authorisation whereby the Board of Directors
is authorised to purchase Eurofins shares on the stock exchange within a period of five (5) years from the date of
the Annual General Meeting of shareholders held on 25 April 2019 (the “April 2019 AGM”). The share repurchase
authorisation was renewed along the same terms and for another period of five (5) years from the date of the
Annual General Meeting of shareholders held on 25 April 2024 (the “April 2024 AGM”). The maximum number of
shares that may be purchased and/or cancelled is limited to 10% of the total number of shares issued on the date
of the latest meeting of the Board of Directors deciding the implementation of the new share repurchase
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programme. The minimum buying price shall be equal to the nominal value of one share and the maximum buying
price should not exceed 110% of the share price traded on Euronext Paris.
The Company joined the CAC 40 index of Euronext Paris in September 2021 and decided, under the 2019 & 2024
Share Repurchase Plans as approved by the April 2019 AGM and the April 2024 AGM and as further approved by
the Board of Directors on 20 October 2021, to enter into a regulated liquidity contract with a provider of financial
services effective on 1
st
November 2021 with annual tacit renewal as from 1
st
January 2022 in order to further
enhance the liquidity of its stock. In the frame of this liquidity contract under the supervision of the French Autorité
des Marchés Financiers, transactions have been executed in 2024 during which a total number of 2,235,044 shares
were purchased at an average price of 53.46 Euros per share and 2,210,116 shares were sold at an average price
of 53.55 Euros per share. In 2024, the liquidity contract generated a loss of €1.0m recorded in the Company’s
statutory accounts as an expense from other investments. As of 31 December 2024, the Company owned 151,143
of its own shares under this liquidity contract.
In addition, the Company announced on 3 October 2022 its intention to purchase some of its own shares for a
maximum amount representing up to 2% of its share capital, over a maximum period of twelve months, as per the
authorisation granted at the April 2019 AGM. Over the course of this programme between 3 October 2022 and 8
August 2023, 1,121,493 shares were repurchased, representing 0.58% of the current share capital.
On 20 October 2023, the Company announced its intention to launch a second share repurchase programme of
some of its own shares for a maximum amount representing up to 2% of the Company’s share capital, over a
maximum period of twenty-four (24) months, as per the authorisation granted by the April 2019 AGM and subject
to the renewal of this authorisation by the April 2024 AGM. Over the course of this second programme between 25
October 2023 and 30 August 2024, 2,700,000 shares were repurchased, representing 1.40% of the share capital.
On 2 September 2024, the Company announced its intention to launch a third share repurchase programme of
some of its own shares for a maximum amount representing up to 2% of the Company’s share capital, over a
maximum period of twenty-four (24) months, as per the authorisation granted at the April 2024 AGM. Over the
course of this third programme between 2 September 2024 and 20 December 2024, 3,010,000 shares were
repurchased, representing 1.56% of the share capital.
On 23 December 2024, the Company announced its intention to launch a fourth share repurchase programme of
some of its own shares for a maximum amount representing up to 2% of the Company’s share capital, over a
maximum period of twenty-four (24) months, as per the authorisation granted at the April 2024 AGM. Over the
course of this fourth programme between 23 December 2024 and 31 December 2024, 250,000 shares were
repurchased, representing 0.13% of the share capital. The Company may at any time interrupt this programme in
view of market conditions and/or the evolution of its investment strategy.
The shares purchased under these programmes will be primarily used to hedge the Company’s Long-Term
Incentive plans but may also be cancelled, used to partially finance acquisitions or for other purposes approved by
the Board of Directors and within the authorisation of the AGM.
As of 31 December 2023, Eurofins held 829,643 of its own shares. During the course of 2024, Eurofins purchased
5,850,000 of its own shares and delivered 631,415 of the repurchased shares to the benefit of holders of the
Company’s Long-Term Incentive instruments (upon exercise of Stock Options or vesting of Restricted Stock Units
(RSUs)). As a result, the Company owned 6,048,228 of its own shares under its Share Repurchase Plans as of 31
December 2024.
In aggregate as of 31 December 2024, the Company owned a total of 6,199,371 of its own shares for a fair value
of 305.7 million Euros (share price: €49.31) and a net book value of 305.4 million Euros, representing a nominal
value of 61,993.71 Euros and 3.21% of the Company’s share capital.
2.3.10 Any Significant Agreement to Which Eurofins is a Party and
Which Takes Effect, is Altered or Terminates upon a Change of
Control
With regard to article 11 (1)(j) of the Takeover Law, such significant agreements to which Eurofins is a party are
not disclosed for confidentiality reasons.
Confidential agreements relate to commercial and strategic aspects of the Group to the knowledge of the Board of
Directors. Exceptionally, some agreements provide for early repayment in the event of change of control and / or
departure of key leaders of the Group at the request of certain credit institutions.
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The terms and conditions of Eurofins’ Deeply Subordinated Bonds (Deeply Subordinated Fixed to Floating Rate
Bonds ISIN XS1716945586) issued in November 2017 provide for the application of an additional interest rate and
an additional margin of 2.5% each per annum, if a change of control event, as defined in the bond documentation,
occurs up to 12 November 2025, as from and including the 60
th
calendar day following the change of control event
date and until the redemption of the bonds; or if a change of control event occurs during a floating rate interest
period, the margin will be increased by 2.5% per annum as from and including the floating rate interest payment
date immediately following the 60
th
calendar day following the change of control event date and until the redemption
of the bonds. If such a change of control occurs prior to the first call date, Eurofins also has the option to redeem
all (but not some only) outstanding bonds.
The terms and conditions of Eurofins’ Deeply Subordinated Bonds (Deeply Subordinated Fixed to Floating Rate
Bonds ISIN XS2579480307) issued in January 2023 provide for the application of an additional interest rate and
an additional margin of 5.0% each per annum, if a change of control event as defined in the bond documentation
occurs up to 24 July 2028, as from and including the 60
th
calendar day following the change of control event date
and until the redemption of the bonds; or if a change of control event occurs during a floating rate interest period,
the margin will be increased by 5.0% per annum as from and including the floating rate interest payment date
immediately following the 60th calendar day following the change of control event date and until the redemption of
the bonds. If such a change of control event occurs, Eurofins also has the option to redeem all (but not some only)
outstanding bonds.
The conditions of the bonds issued in July 2017 (Senior Unsecured Euro Bond ISIN XS1651444140) provide that
if a change of control event as defined in the bond documentation occurs, bondholders have the option to require
Eurofins to redeem all or part of their bonds on a date falling seven days after a 45-day period from the delivery of
a change of control notice given by Eurofins to the bondholders. In such case, bonds are redeemed at their principal
amount together with all interest accrued until (but excluding) such date.
The conditions of the bonds issued in May 2020 (Senior Unsecured Euro Bond ISIN XS2167595672) provide that
if a change of control event as defined in the bond documentation occurs, bondholders have the option to require
Eurofins to redeem all or part of their bonds on a date falling seven days after a 45-day period from the delivery of
a change of control notice given by Eurofins to the bondholders. In such case, bonds are redeemed at their principal
amount together with all interest accrued until (but excluding) such date.
The conditions of the bonds issued in May 2021 (Senior Unsecured Euro Bond ISIN XS2343114687) provide that
if a change of control event as defined in the bond documentation occurs, bondholders have the option to require
Eurofins to redeem all or part of their bonds on a date falling seven days after a 45-day period from the delivery of
a change of control notice given by Eurofins to the bondholders. In such case, bonds are redeemed at their principal
amount together with all interest accrued until (but excluding) such date.
The conditions of the bonds issued in June 2022 (Senior Unsecured Euro Bond ISIN XS2491664137) provide that
if a change of control event as defined in the bond documentation occurs, bondholders have the option to require
Eurofins to redeem all or part of their bonds on a date falling seven days after a 45-day period from the delivery of
a change of control notice given by Eurofins to the bondholders. In such case, bonds are redeemed at their principal
amount together with all interest accrued until (but excluding) such date.
The conditions of the bonds issued in September 2023 (Senior Unsecured Euro Bond ISIN XS2676883114) provide
that if a change of control event as defined in the bond documentation occurs, bondholders have the option to
require Eurofins to redeem all or part of their bonds on a date falling seven days after a 45-day period from the
delivery of a change of control notice given by Eurofins to the bondholders. In such case, bonds are redeemed at
their principal amount together with all interest accrued until (but excluding) such date.
2.3.11 Any Agreement between Eurofins and its Board Members or
Employees Providing for Compensation if they Resign or are
Made Redundant without Valid Reason or if Their Employment
Ceases Because of a Takeover Bid
With regards to article 11 (1)(k) of the Takeover Law, there is a table outlining the remuneration of the members of
the Board of Directors in section 6.4 of the “Eurofins Group Remuneration Report”.
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2.4 Share price development
Euronext, Paris
Month
Average
closing
price (€)
High (€) Low (€)
Average
daily
volume
('000)
Market Cap
(€m)
2023 January 65.51 69.36 62.94 403.61 12,621
February 68.20 72.12 65.18 464.58 13,144
March 61.37 63.80 56.66 613.99 11,828
April 61.52 63.78 58.80 432.88 11,857
May 61.66 65.24 59.58 396.50 11,885
June 59.41 62.50 55.32 402.89 11,451
July 59.51 63.74 55.96 364.33 11,474
August 57.01 62.42 53.46 283.46 10,992
September 54.84 57.44 52.70 305.07 10,575
October 49.50 53.88 44.83 415.19 9,544
November 51.62 54.08 47.52 331.29 9,962
December 56.68 59.66 52.66 330.20 10,937
2024 January 56.85 60.12 54.92 281.10 10,971
February 55.51 58.82 51.32 372.25 10,713
March 56.33 59.10 53.80 309.91 10,870
April 59.42 62.10 55.70 358.57 11,466
May 57.37 60.60 55.14 313.69 11,071
June 52.07 56.26 39.47 581.56 10,048
July 48.86 55.76 43.72 464.72 9,429
August 52.56 55.66 50.88 336.52 10,143
September 53.27 58.24 49.87 359.25 10,279
October 52.39 57.68 44.70 414.06 10,110
November 46.05 47.75 44.52 403.64 8,886
December 47.81 49.95 45.89 323.14 9,226
CORPORATE GOVERNANCE
245
3 Statement of Persons
Responsible for the Annual
Report
The Board of Directors confirms that, to the best of its knowledge, the annual statutory accounts, prepared in
accordance with Luxembourg legal and regulatory requirements, and the consolidated financial statements for the
year ended 31 December 2024, prepared in accordance with the International Financial Reporting Standards as
adopted in the European Union, give a true and fair view of the assets, liabilities, financial position and profit or
loss of Eurofins Scientific SE and its consolidated subsidiaries taken as a whole. In addition, the management
report includes a fair review of the development and performance of the business and the position of Eurofins
Scientific SE and its consolidated subsidiaries taken as a whole, together with a description of the principal risks
and uncertainties that they face and the major related party transactions.
On behalf of the Board of Directors
24 February 2025
Dr Gilles Martin
Chairman of the Board of Directors and CEO
Dated 24 February 2025
246
Annual Financial
Statements
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
247
1 Consolidated Financial
Statements
Consolidated Income Statement
For the year ended 31 December
2024
2023
In € millions
Note
Adjusted
results
1
Separately
disclosed
items
1
Reported
results
Adjusted
results
1
Separately
disclosed
items
1
Reported
results
Revenues
2.1.2.2
6,951.0
-
6,951.0
6,514.6
-
6,514.6
Operating costs, net
2.3
-5,398.8
-112.9
-5,511.6
-5,150.9
-129.3
-5,280.2
EBITDA
1
1,552.3
-112.9
1,439.4
1,363.7
-129.3
1,234.4
Depreciation and
amortisation
2.9 2.11
-535.4
-61.5
-596.9
-522.0
-43.0
-565.0
EBITAS
1
1,016.9
-174.4
842.5
841.7
-172.3
669.4
Share-based payment charge
and acquisition-related
expenses, net
2.6
-
-138.3
-138.3
-
-137.7
-137.7
Gain and loss on disposal of
subsidiaries, net
2.26
-
-23.6
-23.6
-
-1.8
-1.8
EBIT
1
1,016.9
-336.3
680.5
841.7
-311.8
529.9
Finance income
2.7
7.7
16.6
24.2
14.9
7.9
22.8
Finance costs
2.7
-141.9
-9.3
-151.2
-120.9
-9.0
-129.8
Share of profit of associates
2.12
1.0
-
1.0
0.4
-
0.4
Profit before income taxes
883.7
-329.1
554.6
736.1
-312.9
423.3
Income tax expense
2.8
-196.6
47.5
-149.1
-168.4
52.9
-115.5
Net profit for the year
687.1
-281.6
405.5
567.8
-260.0
307.8
Attributable to:
Owners of the Company and
hybrid capital investors
687.5
-281.1
406.4
570.2
-259.9
310.2
Non-controlling interests
-0.4
-0.5
-0.9
-2.4
-0.1
-2.5
Basic earnings per share (€) 2.35
Total
3.61
-1.47
2.13
2.96
-1.35
1.61
Attributable to owners of the Company
3.37
-1.50
1.87
2.71
-1.38
1.33
Attributable to hybrid capital investors
0.24
0.02
0.26
0.25
0.03
0.28
Diluted earnings per share (€) 2.35
Total
3.53
-1.44
2.09
2.88
-1.31
1.57
Attributable to owners of the Company
3.30
-1.47
1.83
2.64
-1.34
1.30
Attributable to hybrid capital investors
0.23
0.02
0.26
0.24
0.03
0.27
In millions
Basic weighted average
shares outstanding
2.35
190.6
-
190.6
192.9
-
192.9
Diluted average shares
outstanding
2.35
194.5
-
194.5
197.9
-
197.9
1
Alternative Performance Measures (APM) are defined in Notes 1.20 and 1.21.
The accompanying notes form an integral part of these consolidated financial statements.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
248
Consolidated Statement of Comprehensive Income
For the year ended 31 December
In € millions
Note
2024
2023
Net profit for the year
405.5
307.8
Items that are or may be reclassified subsequently to profit or loss:
Foreign operations - foreign currency translation gains/losses
2.30
156.4
-93.2
Net investments - revaluation
2.30
61.4
-59.5
Cash flow hedges - effective portion
2.30
-2.0
-0.9
Cash flow hedges - reclassified to profit or loss
-
-
Related tax
2.8
-
-
Total
215.8
-153.6
Items that will not be reclassified to profit or loss:
Remeasurement of defined benefit liability
2.23
5.5
-4.5
Fair value through consolidated other comprehensive income (FVTOCI)
2.13
28.8
-1.6
Related tax
2.8
-4.2
1.1
Total
30.0
-5.0
Other comprehensive income/ loss for the year
245.8
-158.6
Total comprehensive income for the year
651.3
149.2
Attributable to:
Owners of the Company and hybrid capital investors
651.2
154.5
Non-controlling interests
0.1
-5.3
The accompanying notes form an integral part of these consolidated financial statements.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
249
Consolidated Balance Sheet
In € millions
Note
31 December
2024
31 December
2023
Property, plant and equipment
2.9
2,559.8
2,297.4
Goodwill
2.10
4,840.7
4,551.4
Other intangible assets
2.11
787.8
796.0
Investments in associates
2.12
5.9
5.3
Non-current financial assets
2.13
111.5
78.3
Deferred tax assets
2.8
130.3
93.8
Total non-current assets
8,436.2
7,822.2
Inventories
2.14
141.9
139.0
Trade receivables
2.15
1,094.3
1,072.8
Contract assets
2.2
306.2
307.7
Prepaid expenses and other current assets
2.16
192.2
203.1
Current income tax assets
2.8
101.8
118.3
Derivative financial instruments assets
2.33
2.0
4.3
Cash and cash equivalents
2.17
613.9
1,221.2
Total current assets
2,452.2
3,066.4
Total assets
10,888.4
10,888.6
Share capital
2.27
1.9
1.9
Treasury Shares
2.27
-307.8
-54.9
Hybrid capital
2.20
1,000.0
1,000.0
Other reserves
2.27
1,600.9
1,600.9
Retained earnings
2,692.2
2,393.8
Currency translation reserve
2.30
351.7
135.8
Total attributable to owners of the Company
5,339.0
5,077.5
Non-controlling interests
2.28
45.8
59.9
Total shareholders' equity
5,384.7
5,137.4
Borrowings
2.18
3,131.5
3,325.6
Deferred tax liabilities
2.8
109.5
110.0
Amounts due for business acquisitions
2.22
62.8
106.8
Employee benefit obligations
2.23
66.4
66.2
Provisions
2.24
23.2
20.9
Total non-current liabilities
3,393.4
3,629.5
Borrowings
2.18
478.8
601.1
Interest due on borrowings and earnings due on hybrid capital
2.19
54.7
59.2
Trade accounts payable
2.21
645.9
600.2
Contract liabilities
2.2
195.9
192.8
Current income tax liabilities
2.8
35.5
26.7
Amounts due for business acquisitions
2.22
45.7
35.5
Provisions
2.24
32.8
21.4
Other current liabilities
2.21
621.0
584.8
Total current liabilities
2,110.2
2,121.7
Total liabilities and shareholders' equity
10,888.4
10,888.6
The accompanying notes form an integral part of these consolidated financial statements.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
250
Consolidated Cash Flow Statement
For the year ended 31 December
In € millions
Note
2024
2023
Cash flows from operating activities
Profit before income taxes
554.6
423.3
Depreciation and amortisation
2.9 2.11
596.9
565.0
Share-based payment charge and acquisition-related expenses, net
2.6
138.3
137.7
Gain and loss on disposal of subsidiaries, net
2.26
23.6
1.8
Finance income and costs, net
2.7
126.4
104.1
Share of profit from associates
2.12
-1.0
-0.4
Transactions costs and income related to acquisitions
2.6
-10.3
-8.2
Changes in provisions and employee benefit obligations
2.23 2.24
7.5
-11.0
Other non-cash effects
2.9
-0.4
10.1
Change in net working capital
1
2.25
43.9
-64.8
Cash generated from operations
1,479.6
1,157.6
Income taxes paid
2.8
-160.7
-139.7
Net cash provided by operating activities
1,318.9
1,017.9
Cash flows from investing activities
Purchase of property, plant and equipment
2.9
-453.6
-478.1
Purchase, capitalisation of intangible assets
2.11
-74.8
-72.0
Proceeds from sale of property, plant and equipment
10.2
6.4
Net capex
1
-518.2
-543.6
Free Cash Flow to the Firm
1
800.6
474.2
Acquisition of subsidiaries, net
2.26
-343.4
-158.1
Proceeds from disposals of subsidiaries, net
2.26
-0.9
7.3
Disposal/(acquisition) of investments, financial assets and derivative financial
instruments, net
2.29
-3.3
1.9
Interest received
2.29
19.4
11.6
Net cash used in investing activities
-846.5
-681.1
Cash flows from financing activities
Proceeds from issuance of share capital
2.27
0.2
8.0
Purchase of treasury shares, net of gains
2.27
-271.9
-55.8
Proceeds from issuance of hybrid capital
2.20
-
593.5
Repayment of hybrid capital
2.20
-
-182.7
Proceeds from borrowings
2.18
118.0
638.5
Repayment of borrowings
2.18
-477.7
-90.0
Repayment of lease liabilities
2.18 2.7
-192.4
-180.5
Dividends paid to shareholders and non-controlling interests
2.27
-98.0
-193.1
Earnings paid to hybrid capital investors
2.20
-53.5
-42.0
Interests and premium paid
2.7
-114.2
-82.2
Net cash (used in)/ provided by financing activities
-1,089.5
413.6
Net effect of currency translation on cash and cash equivalents and bank
overdrafts
9.4
-12.7
Net (decrease)/increase in cash and cash equivalents and bank
overdrafts
-607.7
737.8
Cash and cash equivalents and bank overdrafts at beginning of year
1,220.9
483.2
Cash and cash equivalents and bank overdrafts at end of year
2.17
613.2
1,220.9
1
APMs defined in Note 1.20.
The accompanying notes form an integral part of these consolidated financial statements.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
251
Consolidated Statement of Changes in Equity
For the year ended 31 December
In € millions
Attributable to owners of the Company
Note
Share
capital
Treasury
shares
Other
reserves
Currency
translation
reserve
Hybrid
capital
Retained
earnings
Non-
controlling
interests
Total
equity
Balance at 1 January 2024
1.9
-54.9
1,600.9
135.8
1,000.0
2,393.8
59.9
5,137.4
Other comprehensive income/
loss
2.30
-
-
-
216.0
-
28.8
1.0
245.8
Net profit for the year
-
-
-
-
-
406.4
-0.9
405.5
Total comprehensive income
-
-
-
216.0
-
435.3
0.1
651.3
Share-based payment effects
2.6
-
-
-
-
-
21.8
-
21.8
Tax credit relating to share-based
payment charge
2.8
-
-
-
-
-
-3.4
-
-3.4
Issuance of share capital
2.27
-
-
-
-
-
0.1
0.1
0.2
Treasury shares
2.27
-
-252.9
-
-
-
-21.5
-
-274.4
Repayment of hybrid capital
2.20
-
-
-
-
-
-
-
-
Issuance of hybrid capital
2.20
-
-
-
-
-
-
-
-
Dividends distributed
2.27
-
-
-
-
-
-95.6
-2.4
-98.0
Distribution on hybrid capital
2.20
-
-
-
-
-
-53.5
-
-53.5
Deferred taxes on distribution on
hybrid capital
2.8
-
-
-
-
-
3.4
-
3.4
Non-controlling interests
2.26
2.28
-
-
-
-
-
11.8
-11.9
-0.1
Balance at 31 December 2024
1.9
-307.8
1,600.9
351.7
1,000.0
2,692.2
45.8
5,384.7
Balance at 1 January 2023
1.9
-14.2
1,592.9
285.7
582.7
2,333.0
68.9
4,851.0
Other comprehensive income/
loss
2.30
-
-
-
-150.0
-
-5.8
-2.8
-158.6
Net profit for the year
-
-
-
-
-
310.2
-2.5
307.8
Total comprehensive income
-
-
-
-150.0
-
304.4
-5.3
149.2
Share-based payment effects
2.6
-
-
-
-
-
23.3
-
23.3
Tax credit relating to share-based
payment charge
2.8
-
-
-
-
-
-1.7
-
-1.7
Issuance of share capital
2.27
-
-
8.0
-
-
-
-
8.0
Treasury shares
2.27
-
-40.7
-
-
-
-15.1
-
-55.8
Repayment of hybrid capital
2.20
-
-
-
-
-182.7
-
-
-182.7
Issuance of hybrid capital
2.20
-
-
-
-
600.0
-6.5
-
593.5
Dividends distributed
2.27
-
-
-
-
-
-191.9
-1.2
-193.1
Distribution on hybrid capital
2.20
-
-
-
-
-
-53.7
-
-53.7
Deferred taxes on distribution on
hybrid capital
2.8
-
-
-
-
-
-
-
-
Non-controlling interests
2.26
2.28
-
-
-
-
-
2.1
-2.6
-0.5
Balance at 31 December 2023
1.9
-54.9
1,600.9
135.8
1,000.0
2,393.8
59.9
5,137.4
The accompanying notes form an integral part of these consolidated financial statements.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
252
Notes to the Consolidated Financial Statements for the year ended 31 December 2024
Eurofins Scientific, through its subsidiaries (hereafter referred to as “Eurofins” or “the Group”) is Testing for Life. Eurofins is a
global leader in food, environment, pharmaceutical and cosmetic product testing and in discovery pharmacology, forensics,
advanced material sciences and agroscience Contract Research services. It is also one of the market leader in certain testing and
laboratory services for genomics, and in the support of clinical studies, as well as in BioPharma Contract Development and
Manufacturing Organisations. It also has a rapidly developing presence in highly specialised and molecular clinical diagnostic
testing and in-vitro diagnostic (IVD) products.
With ca. 63,000 staff across a decentralised and entrepreneurial network of more than 950 laboratories in 60 countries, Eurofins
offers a portfolio of over 200,000 analytical methods to evaluate the safety, identity, composition, authenticity, origin, traceability
and purity of a wide range of products, as well as providing innovative clinical diagnostic testing services and in-vitro diagnostic
products.
Eurofins Scientific SE (The “Company”) is legally and commercially registered in the Grand Duchy of Luxembourg under the
number B 167 775.
The Company’s shares are traded on Euronext Paris stock exchange under the ISIN code FR0014000MR3 (ticker ERF) and the
Company has joined the CAC 40 index on 17 September 2021. The Company’s headoffice is located at 23, Val Fleuri, L-1526
Luxembourg, Grand Duchy of Luxembourg.
The Group is included as a subsidiary in the consolidated financial statements of Analytical Bioventures S.C.A., located at 23 Val
Fleuri, L-1526 Luxembourg, Grand Duchy of Luxembourg.
These Consolidated Financial Statements have been authorised for issuance by the Board of Directors on 24 February 2025 and
will be submitted to the Shareholders’ Annual General Meeting for approval.
1. Significant accounting policies
The significant accounting policies applied in the preparation of these Consolidated Financial Statements are set out below. These
policies have been consistently applied to all the years presented, unless otherwise stated.
1.1. Basis of preparation
Compliance with IFRS
Pursuant to the European Regulation No. 1606/2002 of 19 July 2002, the Consolidated Financial Statements have been prepared
in accordance with the International Financial Reporting Standards (hereinafter also IFRS) as issued by the International
Accounting Standards Board (IASB) and endorsed in the European Union.
These accounting policies have been consistently applied to all the years presented, unless otherwise stated.
The Consolidated Financial Statements are presented in Euros, which is the presentation currency. Due to rounding, amounts
may not add up precisely to the totals provided.
Historical cost convention
The Consolidated Financial Statements have been prepared under the historical cost convention, except for the following:
▪ certain financial assets and liabilities (including derivative financial instruments), reference is made to Note 2.34;
▪ defined benefit pensions plans – plan assets measured at fair value.
Going concern
The Directors have, at the time of approving the financial statements, a reasonable expectation that the Group have adequate
resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of
accounting in preparing the financial statements.
1.2. Significant accounting judgements and estimates
The preparation of the Consolidated Financial Statements in conformity with IFRS requires management to make judgements,
estimates and assumptions that affect the application of accounting policies, the reported amounts of assets, liabilities, revenues
and expenses and the accompanying disclosures, and the disclosure of contingent liabilities. These estimates inherently contain
a degree of uncertainty. Actual results may differ from these estimates under different assumptions or conditions.
The Group evaluates these accounting judgements and estimates on an ongoing basis and bases the estimates on historical
experience, current and expected future outcomes, third-party valuation and various other assumptions that the Group believes
are reasonable under the circumstances. Existing circumstances and assumptions about future developments may change due
to circumstances beyond the Group’s control and are reflected in the assumptions if and when they occur.
The Group revises material estimates if changes occur in the circumstances or if there is new information or experience on which
an estimate was or can be based.
The areas where the most significant judgements and estimates are made are:
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
253
Judgements
▪ Revenue recognition and determination of advancement for over time performance obligations;
▪ Determination of control as part of business combination;
▪ Determination of the lease term and more specifically the assessment whether a lease option to extend or cancel a
lease in which the Group is a lessee is reasonably certain to be exercised or not;
▪ Likelihood of occurrence of provisions, uncertain tax positions and contingent liabilities.
Estimates
▪ Assessment of the recoverable amount of goodwill and intangible assets;
▪ Measurement of the recoverability of deferred tax assets;
▪ Determination of amounts due from business acquisitions based on future cash flows;
▪ Determination of fair values of acquired identifiable intangible assets as part of a business combination.
For further discussion of these significant judgements and estimates, reference is made to the respective accounting policies and
Notes within these Consolidated Financial Statements that relate to the above topics.
Further judgement is applied when analysing impairments of goodwill and intangible assets that are performed annually and
whenever a triggering event has occurred to determine whether the carrying value exceeds the recoverable amount. These
analyses are generally based on estimates of discounted future cash flows. Furthermore, the Group applies judgement when
actuarial assumptions are established to anticipate future events that are used in calculating post-employment benefit expenses
and liabilities. These factors include assumptions with respect to interest rates, rates of increase in healthcare costs, rates of
future compensation increases, turnover rates and life expectancy.
1.3. Basis of Consolidation
The Consolidated Financial Statements comprise the financial statements of Eurofins Scientific SE and all the subsidiaries that the
Group controls, i.e., when it is exposed or has rights to variable returns from its involvement with the investee and has the ability to
affect those returns through its power over the investee. Generally, there is a presumption that a majority of voting rights result in
control. To support this presumption and in cases where the Group has less than a majority the voting or similar rights of an investee,
the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including the contractual
arrangement(s) with the other vote holders of the investee, rights arising from other contractual arrangements and the Group’s voting
rights and potential voting rights.
Subsidiaries
Subsidiaries are fully consolidated from the date that control commences until the date that control ceases. They are no longer
consolidated from the date such control ceases. All intercompany transactions and balances have been eliminated in the Consolidated
Financial Statements.
Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.
Associates
Associates are all entities over which the Group has significant influence but no control. Significant influence is presumed with a
shareholding of between 20% and 50% of the voting rights or when the Group has board representation through which it is able to
exercise significant influence. Investments in associates are accounted for using the equity method and are initially recognised at
cost.
The carrying amount of an investment includes the carrying amount of goodwill identified on acquisition.
Loss of control
Upon loss of control, the Group derecognises the assets and liabilities of the subsidiary, any non-controlling interests and other
components of equity (if any) related to the subsidiary. Any surplus or deficit arising from the loss of control is recognised in the
Consolidated Income Statement. If the Group retains any interest in the previous subsidiary, such interest is measured at fair value
at the date the control is lost. Subsequently it is accounted for as either an equity accounted investee or as a financial asset depending
on the level of influence retained.
Business combinations and Goodwill
Business combinations are accounted for using the acquisition method. Under the acquisition method, the identifiable assets acquired,
liabilities assumed and any non-controlling interests in the acquiree are recognised at the acquisition date, which is the date on which
control is transferred to the Group.
The Group measures goodwill at the acquisition date as being the excess of:
▪ Aggregate of the fair value of the consideration transferred and any recognised amount for non-controlling interests and any
previous interest held;
▪ over the net identifiable assets acquired and liabilities assumed.
If the cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly
in the Consolidated Income Statement (bargain purchase or negative Goodwill).
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination
occurs, the acquirer reports in its financial statements provisional amounts for the items for which the accounting is incomplete
and may adjust the provisional amounts recognised for a business combination during the measurement period (twelve months
from the acquisition date).
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
254
The Group measure Non-Controlling Interests (NCI) at fair value (‘full goodwill method’).
Acquisition-related costs are expensed as incurred.
Further information about the Group’s main subsidiaries can be found in Note 3. The financial effect of the acquisition and disposal of
subsidiaries of the current period is described in Note 2.26.
Acquisition and adjustments of non-controlling interests
Transactions with non-controlling interests in controlled entities are treated as transactions with equity owners of the Group. For
purchases from non-controlling interests, any difference between the consideration paid and the relevant share acquired is
recorded in equity. Gains or losses on disposals to non-controlling interests are also recorded in equity.
Amounts due from business acquisitions
Amounts due for business acquisitions consist mainly of:
▪ amounts due to former shareholders of acquired companies at the estimated fair value amount based on the achievement
of objectives (in general based on revenue and / or a measure of operating profit);
▪ the liability resulting from “put and call options” (part related to the transaction with non-controlling interests) at initial
acquisition time.
Amounts due for business acquisitions are accounted for at fair value of the expected cash flows at the acquisition date. The
variation of the liability related to the time value of money is recorded in the Consolidated Income Statement as a finance cost.
All revaluations of the amounts due for business acquisitions of the purchase price are booked in the Consolidated Income
Statement as an acquisition-related expense (income).
If all or part of the acquisition price of certain acquired laboratories is paid with the Group’s shares (new or existing shares):
▪ the amount due is accounted for in “Amounts due for business acquisitions” in the case where the acquisition contract
stipulates a fixed monetary amount payable in a variable number of the Group’s shares (number to be calculated at the
moment of payment);
▪ the amount due is accounted for in “retained earnings” in the case where the acquisition contract stipulates a fixed number
of the Group’s shares.
Amounts due from business acquisitions are estimated as follows:
▪ In case of cross-option put and call exercisable at a fixed price, the Group considers these instruments as being exercised
from inception. Indeed, as the price is fixed, the risks and rewards are considered, in substance, to be transferred to the
Group. As such, non-controlling interests are not recognised in the Consolidated Balance Sheet and the Consolidated
Income Statement.
▪ In case of cross put and call options at a variable price, the Group considers whether the risks and rewards are transferred
to the Group:
o Where it is determined that risks and rewards did not transfer to the Group, non-controlling interests are recognised
in the Balance Sheet and the Income Statement.
o Where it is determined that risks and rewards did transfer to the Group upon entering into the cross put and call
options, non-controlling interests are not recognised in the Consolidated Balance Sheet and the Consolidated Income
Statement.
In addition, a financial liability reflecting the put option element of the transaction is recognised for an amount corresponding to
the present value of the redemption amount of the put and call options. Such financial liability is recognised from the equity
attributable to holders of the Group.
1.4. Revenue recognition
Revenue recognised over time
Revenue from services is recognised over a period of time as the Group transfers control of the services to the customer which is
demonstrated by the customer simultaneously receiving and consuming the benefits provided by the Group. The amount of
revenue is measured by reference to the progress made towards complete satisfaction of the performance obligation.
Sample based service activities (excluding Clinical Diagnostic Testing activities)
This activity is a repetitive business, generally with many relatively small transactions with short turnaround times ruled by short
term contracts (turnaround time counted in days). These contracts for their vast majority do not include multiple performance
obligations. The Group considers the input method to measure the progress for service rendered to its customers. The payment
terms and conditions are most often standard, short term and highly predictable. Revenue is recorded based on the stage of
completion of the services performed and net of incentives and rebates (if any).
Study based activities
This activity is mainly relying on medium term contracts. Revenue is recognised based on the stage of completion of the study
until the delivery of the final report.
Full-Time Equivalent (FTE)-based activities
This activity relates to Consulting activities and Professional Scientific Services. Revenue is recorded based on the stage of
completion of the services performed.
Revenue recognised at a point in time
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255
Product based activities
Revenue from the sale of goods in the normal course of business is recognised at a point in time when the performance obligation
is satisfied and it is based on the amount of the transaction price that is allocated to the performance obligation. The transaction
price is the amount of the consideration to which the Group expects to be entitled in exchange for transferring the promised goods
to the customer.
The consideration expected by the Group may be fixed or variable.
Revenue for the sale of goods is recognised when control of the asset is transferred to the buyer and only when it is highly
probable that a significant reversal of revenue will not occur when uncertainties related to a variable consideration are resolved.
Transfer of control varies depending on the individual terms of the contract of sale.
Clinical Diagnostic Testing activities
The Group recognises revenues at a point in time when the testing process is completed, and test results are reported to the
ordering physician.
The Group usually bills third-party payers under fee-for-service agreements. Revenue is recorded net of contractual discounts
and generally based on contractual agreements.
In case of absence of contractual agreement and / or uncertainty over the consideration to be received, a stand-alone selling price
is estimated based on a statistical model which factors in historical collection rates based on cluster of payers showing similar
aggregation characteristics. This model is regularly updated with the most recent trends and whenever required.
Financing components and time value of money
The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the
customer and payment by the customer exceeds one year. Consequently, the Group does not adjust any of the transaction prices
for the time value of money.
1.5. Intangible assets other than goodwill
Acquired intangible assets
Separately acquired finite lived intangible assets are accounted for at cost.
Intangible assets acquired as part of a business combination such as brands, customer relationships, technologies and other finite
lived intangible assets are recognised at their fair value at the acquisition date.
Acquired finite lived intangible assets are amortised using the straight-line method over their estimated useful life. The useful lives
are reviewed annually.
Development costs
The directly attributable costs of producing identifiable and separable intangible assets (such as software development) are
recognised as an intangible asset when they are controlled by the Group and it is probable that they will generate future economic
benefits in excess of their cost over a period of more than one year.
Other development expenditures and expenditures on research activities are recognised in the Consolidated Income Statement.
Capitalised development expenditures are stated at cost less accumulated amortisation and impairment losses. Amortisation of
capitalised development expenditures is charged to the Consolidated Income Statement on a straight line basis over the estimated
useful lives of the intangible assets.
1.6. Impairment
Impairment of goodwill and intangible assets
Goodwill is not amortised but is tested for impairment annually and whenever impairment indicators are identified. Internal or
external sources of information are considered indicators that an asset or a Cash Generating Unit (CGU) or groups of CGUs may
be impaired. An impairment loss is recognised in the Consolidated Income Statement whenever and to the extent that the carrying
amount of a cash generating unit exceeds the unit’s recoverable amount. The recoverable amount is the higher of an asset’s fair
value less costs to sell or its value in use. Reference is made to Note 2.10 for further details.
Intangible assets that are subject to amortisation (e.g., customer relationships, brands) are reviewed for impairment whenever
triggering events or changes in circumstances indicate that the carrying value may not be recoverable.
Impairment of non-financial assets other than goodwill, intangible assets, inventories, and deferred tax assets
Non-financial assets other than goodwill, intangible assets, inventories and deferred tax assets are reviewed for impairment
whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.
Recoverability of assets is assessed by a comparison of the carrying amount of said assets with the greater of their value in use
and fair value less costs of disposal.
Value in use is measured as the present value of future cash flows expected to be generated by the asset. Fair value less costs
of disposal is measured as the amount obtained from a sale of an asset in an arm’s length transaction, less costs of disposal. If
the carrying amount of an asset is deemed to not be recoverable, an impairment charge is recognised in the amount by which the
carrying amount of the asset exceeds the recoverable amount. The review for impairment is carried out at the level where cash
flows occur that are independent of other cash flows.
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256
Impairment losses recognised in prior periods are assessed at each reporting date for any indication that the loss has decreased
or no longer exists. An impairment loss is reversed only to the extent that there has been a change in the estimates used to
determine the recoverable amount. The loss is reversed only to the extent that the asset’s carrying amount does not exceed the
carrying amount that would have been recognised.
Impairment of financial assets
The Group recognises an allowance for Expected Credit Losses (ECLs) for trade receivables, debt investments carried at Fair
Value Through Other Comprehensive Income (FVTOCI) and amortised costs. ECLs are based on the difference between the
contractual cash flows due in accordance with the contract and all the cash flows that the Group expect to receive.
For all trade receivables and contract assets, the Group applies the IFRS 9 simplified approach to measuring ECLs.
To measure the ECLs on trade receivables and contract assets, the Group takes into account credit-risk concentration, collective
debt risk based on average historical losses as well as days past due. The Group also may factor in specific circumstances such
as serious adverse economic conditions in a specific country or region, and other forward-looking information. The Group may
also apply individual credit losses on identified trade account receivables or contract assets depending on individual
circumstances.
Significant increase in credit risk
In assessing whether the credit risk on a financial instrument has increased significantly since initial recognition, the Group
compares the risk of a default occurring on the financial instrument at the reporting date with the risk of a default occurring on the
financial instrument at the date of initial recognition. In making this assessment, the Group considers both quantitative and
qualitative information, including historical experience and forward-looking information that is available without undue cost or
effort.
Irrespective of the outcome of the above assessment, the Group presumes that the credit risk on a financial asset has increased
significantly since initial recognition when contractual payments are more than 90 days past due, unless the Group has information
that demonstrates otherwise; or is considered a financial instrument with low credit risk.
The Group regularly monitors the effectiveness of the criteria used to identify whether there has been a significant increase in
credit risk and revises them as appropriate.
Definition of default
The Group considers the following as constituting an event of default for internal credit risk management purposes as historical
experience indicates that financial assets that meet either of the following criteria are generally not recoverable:
• When there is a breach of financial covenants by the debtor;
• Information developed internally or obtained from external sources indicates that the debtor is unlikely to pay (without
taking into account any collateral held by the Group).
Credit-impaired financial asset
A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of
that financial asset have occurred. Evidence that a financial asset is credit-impaired includes observable data about the following
events:
• Significant financial difficulty of the issuer or the borrower;
• A breach of contract, such as a default or past due event;
• The lender(s) of the borrower, for economic or contractual reasons relating to the borrower’s financial difficulty, having
granted to the borrower a concession(s) that the lender(s) would not otherwise consider;
• It is becoming probable that the borrower will enter bankruptcy or other financial reorganisation;
• The disappearance of an active market for that financial asset because of financial difficulties.
Write Off Policy
The Group writes off a financial asset when there is information indicating that the debtor is in severe financial difficulty and there
is no realistic prospect of recovery, e.g., liquidation or bankruptcy proceedings, or in the case of trade receivables with amounts
past due over two years. Financial assets written off may still be subject to enforcement activities under the Group’s recovery
procedures. Any recoveries made are recognised in profit or loss.
1.7. Leases
The Group leases various offices, laboratories and cars.
The Group determines whether an arrangement constitutes or contains a lease at inception, which is based on the substance of
the arrangement. The arrangement constitutes or contains a lease if fulfilment is dependent on the use of a specific asset and the
arrangement conveys a right to use the asset, even if that asset is not explicitly specified in the arrangement.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is available for
use by the Group.
The right-of use asset is depreciated over the shorter of the asset's useful life and the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net present
value of the following lease payments:
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257
▪ fixed payments (including in-substance fixed payments) less any lease incentives receivable;
▪ variable lease payments that are based on an index or a rate;
▪ amounts expected to be payable by the lessee under residual value guarantees;
▪ the exercise price of a purchase option if the lessee is reasonably certain to exercise that option;
▪ payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate implicit of the lease. If that rate cannot be determined, the lessee’s
incremental borrowing rate at the lease commencement date is used, which is based on an assessment of interest rates the Group
would have to pay to borrow funds in the relevant country, including the consideration of factors such as the nature of the asset
and location, collateral, market terms and conditions, as applicable.
After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the
lease payments made.
In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change
in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.
Right-of-use assets are measured at cost comprising the following:
▪ the amount of the initial measurement of lease liability;
▪ any lease payments made at or before the commencement date less any lease incentives received;
▪ any initial direct costs; restoration costs.
The right-of-use assets are subsequently accounted for using principles for property, plant and equipment. Payments associated
with short-term leases and leases of low-value assets are recognised on a straight-line basis as an expense in the Consolidated
Income Statement. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise IT-equipment
and small items of office furniture considered to be of low value (i.e., less than €5,000).
The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to
extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is
reasonably certain not to be exercised.
The Group applies judgement in evaluating whether it is reasonably certain to exercise the option to renew. That is, it considers
all relevant factors that create an economic incentive for it to exercise the renewal.
The Group has classified:
▪ cash payments for the principal portion and the interest portion of lease payments as financing activities;
▪ short-term lease payments and payments for leases of low-value assets as operating activities.
1.8. Property, plant and equipment
Property, plant and equipment are reported on the Consolidated Balance Sheet at their acquisition price, net of accumulated
depreciation and impairment losses.
The costs of property, plant and equipment comprise all directly attributable costs.
Depreciation is generally calculated using the straight-line method over the useful life of the asset. Refer to Note 2.9 for useful life
by asset type.
Costs related to repair and maintenance activities are expensed in the period in which they are incurred unless leading to an
extension of the original useful life or productivity.
Leasehold improvements are amortised using the straight-line method over the shorter of the lease term or the estimated useful
life of the asset.
1.9. Financial Instruments
Non-derivative financial assets
Non-derivative financial assets comprise cash and cash equivalents, receivables and other financial assets.
Recognition and initial measurement:
Non-derivative financial assets are recognised when the Group becomes a party to the contractual provisions of the instrument.
Purchases and sales of non-derivative financial assets in the normal course of business are accounted for at the trade date.
Dividend and interest income are recognised when earned. Gains or losses, if any, are recorded in Finance income and Finance
costs.
Non-derivative financial assets are derecognised when the rights to receive cash flows from the asset have expired or the Group
has transferred its rights to receive cash flows from the asset. At initial recognition, the Group measures non-derivative financial
assets at their fair value plus, in the case of a financial asset not measured at Fair Value Through Profit or Loss (FVTPL),
transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried
at FVTPL are expensed in the Consolidated Income Statement.
Classification and subsequent measurement:
The Group classifies its non-derivative financial assets in the following measurement categories:
▪ those that are measured subsequently at fair value;
▪ those that are measured at amortised cost.
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258
In assessing the classification, the Group considers the business model for managing the financial assets and the contractual
terms of the cash flows.
For assets measured at fair value, gains and losses will be recorded in either the Consolidated Income Statement or in Other
Comprehensive Income (OCI).
For investments in equity instruments that are not held for trading, classification will depend on whether the Group has made an
irrevocable election at the time of initial recognition to account for the equity investment at Fair Value Through Other
Comprehensive Income (FVTOCI) and whether they meet the criteria established under IFRS 9 Financial Instruments.
For investments in these equity instruments, the Group does not subsequently reclassify between FVTOCI and FVTPL.
For debt investments, assets are reclassified between FVTOCI, FVTPL and amortised cost only when its business model for
managing those assets changes.
Cash and cash equivalents
Cash and cash equivalents include cash balances, certain money market funds and short-term highly liquid investments with an
original maturity of three months or less that are readily convertible into known amounts of cash. The Group presents Cash and
cash equivalents net if an enforceable right and an intention to net the balances exists.
Receivables
Receivables that are held to collect are subsequently measured at amortised cost and are subject to impairment (refer to
impairment section in Note 1.6).
Contract assets correspond to amounts accrued or due by customers for analysis in progress depending on the stage of
completion of the analysis/work performed.
For governmental organisations as well as healthcare insurance providers, in the case of some of its U.S. clinical diagnostic testing
services, the Group regularly assesses the state of its billing operations and the level of payer’s reimbursements based on specific
facts and circumstances and historical recoverability data in order to identify issues which may impact the collection of these
rec eivables.
Other current and non-current financial assets
Other current and non-current financial assets include both debt instruments and equity instruments.
Debt instruments
Debt instruments include those subsequently carried at amortised cost, those carried at FVTPL and those carried at FVTOCI.
Classification depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset.
Debt instruments that are held for collection of contractual cash flows, where those cash flows represent solely payments of
principal and interest, are measured at amortised cost and are subject to impairment. Interest income from these financial assets
is included in Finance income using the effective interest rate method.
Financial assets with embedded derivatives are considered in their entirety when determining whether their cash flows are solely
payment of principal and interest.
Debt instruments that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash
flows represent solely payments of principal and interest, are measured at FVTOCI and are subject to impairment.
Movements in the carrying amounts are taken through OCI, except for the recognition of impairment gains or losses, interest
revenue and foreign exchange gains and losses, which are recognised in the Consolidated Income Statement.
When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to
the Consolidated Income Statement. Interest income from these financial assets is included in Financial income using the effective
interest rate method. Debt instruments that do not meet the criteria for amortised cost or FVTOCI are measured at FVTPL.
A gain or loss on a debt investment that is subsequently measured at FVTPL is recognised in the Consolidated Income Statement
in the period in which it arises.
Equity instruments
For equity instruments that are not held for trading, the Group makes an irrevocable election at the time of initial recognition
whether to account for the equity investment at FVTPL or FVTOCI.
Where the Group has elected to present fair value gains and losses on equity investments in OCI, there is no subsequent
reclassification of fair value gains and losses to the Consolidated Income Statement following the derecognition of the investment.
Dividends from such investments continue to be recognised in the Consolidated Income Statement when the Group’s right to
receive payments is established.
Debt and other financial liabilities
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259
Debt and other financial liabilities, excluding derivative financial liabilities and provisions, are initially measured at fair value and,
in the case of debt and payables, net of directly attributable transaction costs. Debt and other financial liabilities are subsequently
measured at amortised cost using the effective interest rate. Amortised cost is calculated by taking into account any discount or
premium on acquisition and fees or costs that are an integral part of the effective interest rate.
Debt and other financial liabilities are derecognised when the obligation under the liability is discharged, cancelled or has expired.
Equity
Common shares are classified as equity. Incremental costs directly attributable to the issuance of shares are recognised as a
deduction from equity.
Where the Group purchases its own equity share capital (treasury shares), the consideration paid, including any directly
attributable incremental transaction costs (net of income taxes), is deducted from equity attributable to the Group’s equity holders
until the shares are cancelled or reissued.
Where such ordinary shares are subsequently reissued, any consideration received, net of any directly attributable incremental
transaction costs and the related income tax effects, is included in equity attributable to the Group’s equity holders.
Dividends are recognised as a liability in the period in which they are declared and approved by shareholders. The income tax
consequences of dividends are recognised when a liability to pay the dividend is recognised.
Hybrid capital
The structure of the hybrid capital ensures that it is recognised as a component of equity in accordance with IAS 32 as the
conditions below are met:
▪ No contractual obligation to redeem the instrument;
▪ No contractual obligation to pay the coupon.
Tax-deductible interest payments are not included in interest expense but accounted for in the same way as dividend obligations
to shareholders. The distribution of coupon payments and the costs of issue are booked before tax in shareholders’ equity.
Reference is made to Note 2.20 for further detail about the Group’s hybrid capital nature.
Derivative financial instruments, including hedge accounting
All derivative financial instruments are accounted for at the trade date and classified as current or non-current assets or liabilities
based on the maturity date or the early termination date.
The Group measures all derivative financial instruments at fair value that is derived from the market prices of the instruments,
calculated on the basis of the present value of the estimated future cash flows based on observable interest yield curves, basis
spread, credit spreads and foreign exchange rates, or derived from option pricing models, as appropriate.
Gains or losses arising from changes in fair value of derivative financial instruments are recognised in the Consolidated Income
Statement, except for derivatives that are highly effective and qualify for cash flow or net investment hedge accounting.
Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash flow hedge are
recorded in OCI until the Consolidated Income Statement are affected by the variability in cash flows of the designated hedged
item.
To the extent that the hedge is ineffective, changes in the fair value are recognised in the Consolidated Income Statement.
The Group formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative financial instruments
that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of hedged items.
When it is established that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the
Group discontinues hedge accounting prospectively.
When hedge accounting is discontinued because it is expected that a forecasted transaction will not occur, the Group continues
to carry the derivative on the Consolidated Balance Sheet at its fair value, and gains and losses that were accumulated in OCI
are recognised immediately in the same line item as they relate to in the Consolidated Income Statement.
Foreign currency differences arising upon retranslation of financial instruments designated as a hedge of a net investment in a
foreign operation are recognised directly in the currency translation differences reserve through OCI, to the extent that the hedge
is effective. To the extent that the hedge is ineffective, such differences are recognised in the Consolidated Income Statement.
1.10. Fair value measurements
The Group classifies fair value measurements using a fair value hierarchy that reflects the significance of the inputs used in
making the measurements. The fair value hierarchy has the following levels:
▪ Quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1 – Marketable securities, Derivative
financial instruments assets, Listed bonds);
▪ Inputs other than quoted prices included within Level 1 that are observable for the asset or the liability, either directly (i.e.,
such as prices) or indirectly (i.e., derived from prices) (Level 2 – Derivative financial instruments liabilities);
▪ Inputs for the asset or liability that are not based on observable market data (Level 3).
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260
1.11. Inventories
Inventories are measured at the lower of cost or net realisable value.
The cost of inventories comprises all costs of purchase, cost of conversion and other costs incurred in bringing the inventories to
their present location and condition.
The cost of inventories is measured using the first-in, first-out (FIFO) method.
The net realisable value represents the estimated sales price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale. Write-downs of inventories which are considered obsolete or
slow moving are computed taking into account their expected future utilisation and their net realisable value. The Group also
considers other reasons that the cost of inventories may not be recoverable such as damage, obsolescence, expiration date or
declines in selling price.
1.12. Provisions
Provisions are recognised if as a result of past events, the Group has a present legal or constructive obligation, for which the
amount can be estimated reliably and it is more likely than not that an outflow of resources will be required to settle the obligation.
Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax
discount rate that reflects current market assessments of the time value of money.
1.13. Income taxes
Income taxes comprise current, non-current and deferred tax. Income tax is recognised in the Consolidated Income Statement
except to the extent that it relates to items recognised directly within equity or in Other Comprehensive Income.
Current tax is the expected taxes payable on the taxable income for the year, using tax rates enacted or substantively enacted at
the reporting date, and any adjustment to tax payable in respect of previous years.
In cases where it is concluded it is not probable that tax authorities will accept a tax treatment, the effect of the uncertainty is
reflected in the recognition and measurement of tax assets and liabilities or, alternatively, a provision is made for the amount that
is expected to be settled, where this can be reasonably estimated. This assessment relies on estimates and assumptions and
may involve a series of judgements about future events.
New information may become available that causes the Group to change its judgement regarding adequacy of existing tax assets
and liabilities. Such changes to tax assets and liabilities will impact the income tax expense in the period during which such a
determination is made.
Deferred tax assets and liabilities are recognised, using the Consolidated Balance Sheet method, for the expected tax
consequences of temporary differences between the carrying amounts of assets and liabilities and the amounts used for taxation
purposes. Deferred taxes are measured at the tax rates that are expected to be applied to temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and
liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes
levied by the same tax authority on the same taxable entity or on different taxable entities, but the Group intends to settle current
tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent that it is
probable that there will be future taxable profits against which they can be utilised. The ultimate realisation of deferred tax assets
is dependent upon the generation of future taxable income in the countries where the deferred tax assets originated and during
the periods when the deferred tax assets become deductible. The Group considers the scheduled reversal of deferred tax
liabilities, projected future taxable income and tax planning strategies in making this assessment.
1.14. Foreign currencies
Foreign currency transactions
The financial statements of all Group entities are measured using the currency of the primary economic environment in which the
entity operates (“the functional currency”). The Euro (€) is the functional currency of the Group and the presentation currency of
the Consolidated Financial Statements.
Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the
transactions or the valuation in cases where items are remeasured.
Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year-end
exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in the Consolidated Income
Statement, except when deferred in Other comprehensive income as qualifying cash flow hedges and qualifying net investment
hedges.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the
functional currency using the exchange rate at the date the fair value was determined. Non-monetary items in a foreign currency
that are measured based on historical cost are translated using the exchange rate at the transaction date.
Foreign operations
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261
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated
to Euros at the exchange rates prevailing at the reporting date. The income and expenses of foreign operations are translated to
Euros at the exchange rates prevailing at the dates of the transactions.
Foreign currency differences arising upon translation of foreign operations into Euros are recognised in Other Comprehensive
Income and presented as part of currency translation reserves in Shareholders Equity.
When a foreign operation is disposed of such that control, significant influence or joint control is lost, the cumulative amount in the
currency translation differences related to the foreign operation is reclassified to the Consolidated Income Statement as part of
the gain or loss on disposal.
1.15. Non-current assets held for sale
Non-current assets that are expected to be recovered primarily through sale rather than through continuing use are classified as
held for sale.
Non-current assets held for sale are carried at the lower of carrying amount or fair value less cost of disposal. Any gain or loss
from disposal, together with the results of these operations until the date of disposal, is reported separately as discontinued
operations.
The financial information of discontinued operations is excluded from the respective captions in the Consolidated Financial
Statements and related Notes for all periods presented. Comparatives in the Consolidated Balance Sheet are not represented
when a non-current asset is classified as held for sale. Comparatives are represented for presentation of discontinued operations
in the Consolidated Cash Flow Statement and Consolidated Income Statement.
1.16. Employee benefits
A defined-contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate entity
and will have no legal or constructive obligation to pay further amounts.
Obligations for contributions to defined-contribution pension plans are recognised as an employee benefit expense in the
Consolidated Income Statement in the periods during which services are rendered by employees. A defined-benefit plan is a post-
employment benefit plan other than a defined-contribution plan.
Plans for which the Group has no legal or constructive obligation to pay further amounts, but to which it does pay non-fixed
contributions, are also treated as a defined-benefit plan.
The net pension asset or liability recognised in the Consolidated Balance Sheet in respect of defined-benefit post-employment
plans is the fair value of plan assets less the present value of the projected defined-benefit obligation at the Consolidated Balance
Sheet date.
The defined-benefit obligation is calculated annually by qualified actuaries using the projected unit credit method. Recognised
assets are limited to the present value of any reductions in future contribution or any future refunds.
The net pension liability is presented as a long-term provision; no distinction is made for the short-term portion.
Pension costs in respect of defined-benefit post-employment plans primarily represent the increase of the actuarial present value
of the obligation for post-employment benefits based on employee service during the year and the interest on the net recognised
asset or liability in respect of employee service in previous years.
Remeasurements of the net defined-benefit asset or liability comprise actuarial gains and losses, the return on plan assets
(excluding interest) and the effect of the asset ceiling (excluding interest).
The Group recognises all remeasurements in Other Comprehensive Income.
The Group recognises gains and losses on the settlement of a defined-benefit plan when the settlement occurs.
The gain or loss on settlement is the difference between the present value of the defined-benefit obligation being settled, as
determined on the date of settlement, and the settlement price, including any plan assets transferred and any payments made
directly by the Group in connection with the settlement. Past service costs arising from the introduction of a change to the benefit
payable under a plan or a significant reduction of the number of employees covered by a plan (curtailment) are recognised in full
in the Consolidated Income Statement.
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned
in return for their service in the current and prior periods, such as jubilee entitlements. That benefit is discounted to determine its
present value. Remeasurements are recognised in the Consolidated Income Statement in the period in which they arise.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is
provided.
The Group recognises a liability and an expense for bonuses and incentives based on a formula that takes into consideration the
profit attributable to the Group’s shareholders after certain adjustments.
1.17. Share based payments
Please refer to Note 2.27 for further details about the different plans.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
262
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate
valuation model.
The grant-date fair value of equity-settled share-based payment awards granted to employees is recognised as personnel
expense, with a corresponding increase in equity, over the vesting period of the award.
The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent
to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest.
The expense or credit in the statement of income for a period represents the movement in cumulative expense recognised at the
beginning and end of that period. Service and non-market performance conditions are not taken into account when determining
the grant-date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate
of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant-date fair
value.
No expense is recognised for awards that do not ultimately vest because non-market performance and/or service conditions have
not been met.
When an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed
immediately through profit or loss. The dilutive effect of outstanding options and shares is reflected as additional share dilution in
the computation of diluted earnings per share.
1.18. Finance income and costs
Financial income comprises interest income on funds invested (including financial assets), dividend income, net gains on the
disposal of financial assets, net fair value gains on financial assets at FVTPL, net gains on the remeasurement to fair value of any
pre-existing interest in an acquiree, and net gains on foreign exchange impacts that are recognised in the Consolidated Income
Statement.
Interest income is recognised on an accrual basis in the Consolidated Income Statement, using the effective interest method.
Dividend income is recognised in the Consolidated Income Statement on the date that the Group’s right to receive payment is
established, which in the case of quoted securities is normally the ex-dividend date.
Financial expenses comprise interest expenses on borrowings, unwinding of the discount on provisions and contingent
consideration, losses on disposal of financial assets, net fair value losses on financial assets at FVTPL, impairment losses
recognised on financial assets (other than trade receivables), net interest expenses related to defined-benefit plans, interest on
lease liabilities and net losses on foreign exchange impacts that are recognised in the Consolidated Income Statement.
1.19. Earnings per share
The Group presents basic and diluted Earnings Per Share (EPS) data for its common shares. Basic EPS is calculated by dividing
the Net income (loss) attributable to shareholders by the weighted average number of common shares outstanding during the
period, adjusted for own shares held. Diluted EPS is determined by adjusting the Net income (loss) attributable to shareholders
and the weighted average number of common shares outstanding during the period, adjusted for own shares held, for the effects
of all dilutive potential common shares, which comprises forward purchase contracts, restricted shares, performance shares and
share options granted to employees.
1.20. Alternative performance measures (APM)
The Group is providing in the Consolidated Financial Statements certain alternative performance measures (non-GAAP
measures).
APMs used in the Consolidated Income Statement
Adjusted results – reflect the ongoing performance of the mature and recurring activities excluding “separately disclosed items”.
Separately Disclosed Items (SDI) – include:
▪ one-off costs from network expansion, integration and reorganisation;
▪ discontinued operations;
▪ other non-recurring income and costs;
▪ temporary losses and other costs related to start-ups and acquisitions undergoing significant restructuring;
▪ share-based payment charge;
▪ acquisition-related expenses, net – impairment of goodwill, amortisation/impairment of acquired intangible assets, negative
goodwill, transaction costs related to acquisitions as well as income from reversal of such costs and from unused amounts
due for business acquisitions;
▪ gain and loss on disposal of subsidiaries, net;
▪ net finance costs related to borrowing and investing excess cash and one-off financial effects (net of finance income);
▪ net finance costs related to hybrid capital;
▪ and the related tax effects.
Details are provided in Notes 1.21 and 2.5.
The Group defines its non-GAAP measures as follows:
EBITDA – Earnings before interest, taxes, depreciation and amortisation, share-based payment charge and acquisition-related
expenses, net and gain and loss on disposal of subsidiaries, net.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
263
EBITAS – EBITDA less depreciation and amortisation.
EBIT – EBITAS less share-based payment charge and acquisition-related expenses, net and gain and loss on disposal of
subsidiaries, net.
These measures exclude certain items because of the nature of these items and the impact they have on the analysis of the
underlying business performance and trends.
The Group shows EBITDA, EBITAS, EBIT as defined in the Notes to the Consolidated Income Statement with the objective to be
consistent with the information used in internal Group reporting to measure the performance of Group companies and information
published by other comparable companies.
APMs used in the Consolidated Cash Flow Statement
Net capex – Purchase, capitalisation of intangible assets, purchase of property, plant and equipment less capex trade payables
change of the period and proceeds from disposals of such assets.
Free Cash Flow to the Firm – Net cash provided by operating activities, less Net capex.
APMs used in the Notes to the Consolidated Financial Statements
Net debt – Current and non-current borrowings, less Cash and cash equivalents (Note 2.17).
Net working capital – Inventories, trade receivables and contract assets, prepaid expenses and other current assets less trade
accounts payable, contract liabilities and other current liabilities excluding accrued interest receivable and payable (Note 2.25).
Free Cash Flow to Equity – Free Cash Flow to the Firm, less disposal/(acquisition) of investments, financial assets and derivative
financial instruments, net, repayment of lease liabilities and after interests and premium paid net of interest received. Free cash
flow to Equity does not take into account the dividends paid to shareholders and non-controlling interests as well as earnings paid
to hybrid capital holders (Note 2.29).
The Group believes that providing these APMs enhances investors’ understanding of the Group’s core operating results and future
prospects, consistent with how the Group measures and forecasts the Group’s performance, especially when comparing such
results to previous periods or objectives and to the performance of our competitors.
This enables the Group to demonstrate the underlying profitability of the business – i.e., what the performance would be if the
investments as described in Note 1.21 were not undertaken. In the interest of full transparency, the Group discloses both the
adjusted results (i.e., without the separately disclosed items) and full reported results (i.e., including the separately disclosed
items).
This information should be considered in addition to, but not in lieu of, information prepared in accordance with IFRS.
1.21. Mature scope and Separately disclosed items
In order to present the performance of the Group in a clear, consistent and comparable format, certain items are disclosed
separately in the Consolidated Income Statement.
Mature scope
Mature scope excludes start-ups and acquisitions in significant restructuring. A business will generally be considered mature
when: i) The Group’s systems, structure and processes have been deployed; ii) It has been audited, accredited, qualified and
used by the relevant regulatory bodies and the targeted client base; iii) It no longer requires above-average annual capital
expenditures, exceptional restructuring or abnormally large costs with respect to their current revenues for deploying new Group
IT systems. The list of entities classified as mature is reviewed at the beginning of each year and is relevant for the whole year.
In 2024, 94% of total Group revenues were included in the mature scope (95% in 2023).
Separately disclosed items
Separately disclosed items are defined in Note 1.20 (see details in Note 2.5).
One-off costs from network expansion, integration, reorganisation, discontinued operations and other non-recurring income and
costs
One-off costs from network expansion, integration, reorganisation costs, such as reducing overhead and consolidating facilities,
are included in the separately disclosed items as the Group believes that these effects are not indicative of the Group’s normal
operating income and expenses.
Network expansion refers to merger and acquisition related efforts and expenses, mainly impacting our mature business activities.
Discontinued operations are a component of the Group’s core business or product lines that have been disposed of, or liquidated;
or a specific business unit or a branch of a business unit that has been shut down or terminated, and are reported separately from
continued operations.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
264
Other non-recurring income and costs are also disclosed separately, as they are either isolated or cannot be expected to occur
again with any regularity or predictability and as the Group believes they are not indicative of the Group’s normal operating income
and expenses. These include gains or losses on significant litigation-related matters.
Temporary losses and other costs related to start-ups and acquisitions undergoing significant restructuring
The non-mature scope of start-ups or acquisitions in significant restructuring are companies or business activities established to
develop an existing business model, transfer technology or a specific strategy. They are generally greenfield operations, or, in
certain cases, newly acquired businesses bought to achieve a target market share in a given geography that are not operating
optimally, but that have the potential to operate efficiently and profitably once restructured or reorganised to the Group’s model.
However, the reorganisation measures required are so large that they have a significant negative impact on the ongoing business
of the Group. Start-ups are generally undertaken in new markets, and in particular emerging markets, where there are often limited
viable options for acquisitions or in developed markets when Eurofins transfers technology developed by its R&D and Competence
Centers abroad or expands geographically by replicating its standardised laboratories or blood collection points.
Given that the costs or operating losses incurred in the start-up or restructuring phase are temporary and should cease within a
3-5 year period on average, it is the Group’s view that they should be disclosed separately. Whilst the timeframe for these
temporary costs or losses is finite, and should cease gradually, the businesses should continue to generate revenues for the
Group indefinitely, and these are therefore not considered temporary.
Start-up activities go through various stages of development before reaching optimal efficiency levels and can take several years
to become profitable. The development process includes the creation or construction of the laboratory, hiring the appropriate staff,
obtaining relevant accreditations, deployment of the IT infrastructure and dedicated IT solutions, developing the sales and
marketing channels, and building up volumes and the revenue base.
In general, start-up periods last for 2 to 3 years in mature markets and 2 to 5 years in emerging markets.
The list of entities classified as start-ups or acquisitions in significant restructuring is reviewed at the beginning of each year and
is relevant for the whole year.
Temporary losses and other costs related to start-ups and new acquisitions undergoing significant restructuring are included in
the separately disclosed items as these are investments in future growth prospects and distort the judgement of the underlying
performance of the mature businesses of the Group.
The one-off costs related to start-ups and acquisitions in restructuring are henceforth included in the temporary losses, which
were previously disclosed separately. This will increase the transparency of the SDI disclosures, providing a comprehensive view
of the performance of the non-mature business. The 2023 SDI disclosures have been adjusted accordingly to reflect this change
in presentation.
Depreciation costs specific to start-ups and acquisitions undergoing significant restructuring
The line corresponds to the line “depreciation” of the entities classified as start-ups or acquisitions in significant restructuring.
Share-based payment charge and acquisition-related expenses, net
Separately disclosed items also include share-based payment charge, impairment of goodwill, and amortisation/impairment of
acquired intangible assets, recording of negative goodwill as well as income from reversal of such costs and from unused amounts
due for business acquisitions as all these transactions are without cash impact in the Consolidated Financial Statements.
Furthermore, the amortisation of acquired intangible assets is included because a significant portion of the purchase price for
acquisitions may be allocated to intangible assets.
All transaction costs and long-term incentives/ retention bonus related to acquisitions during the year are disclosed separately.
There are a number of different professionals that may assist throughout the process of planning, negotiating, performing due
diligence, and closing of the transaction. Examples include intermediaries (investment bankers or business brokers), legal
professionals (lawyers) and accounting professionals. These costs are specific and directly related to the transaction and are
usually paid at or around the closing of the relevant transaction. These costs are disclosed separately also due to the fact that if
the Group would stop its external growth, i.e., acquisitions, and would only focus on internal growth, most of these costs would
disappear instantly and the EBIT would increase mechanically. Furthermore, these costs do not correspond to the Group’s
business of providing analytical solutions to its customers.
Gain and loss on disposal of subsidiaries, net
These include gains or losses on the disposal of a business or real estate to third party or liquidation.
Net finance costs related to borrowing and investing excess cash and one-off financial effects (net of finance income) and related
to hybrid capital
Net finance costs related to excess cash and one-off financial effects correspond to cash earmarked for future investments/
acquisitions and not needed for the existing business. Excess cash is calculated as the difference between the total Consolidated
cash balance at month-end and the minimum liquidity position required to operate the business, as based on a percentage of
sales (considered to be 5% of the annualised revenues of the rolling last three months) and split proportionately between Equity,
Gross financial debt and hybrid capital. The finance cost related to excess cash is then calculated using the weighted average
interest rate of each debt instrument and coupon on hybrid capital on the Balance Sheet of the Group.
Tax effect from the adjustment of all separately disclosed items
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
265
On all items listed above, the related tax effects are calculated.
Total impact on earnings attributable to hybrid capital investors
This item corresponds to the Net finance costs related to hybrid capital excess cash.
The Group believes that the separate disclosure of these items enhances investors’ understanding of the Group’s core operating
results and future prospects and allows better comparisons of operating results which are consistent over time and with peer
companies.
1.22. Application of standards, amendments and interpretations
Standards, amendments and interpretations adopted by the European Union and effective as of 1 January 2024
The accounting policies applied for the preparation of these Consolidated Financial Statements are consistent with those applied
in the preparation of Consolidated financial statements for the year ended 31 December 2023.
Other standards, amendments and interpretations newly applicable as of 1 January 2024
Other standards, amendments and interpretations newly applicable as of 1 January 2024:
▪ Lease Liability in a Sale and Leaseback – Amendment to IFRS 16
▪ Supplier Finance Arrangements – Amendments to IAS 7 and IFRS 7
▪ Classification of Liabilities as Current or Non-Current and Non-current Liabilities with Covenants – Amendment to IAS 1.
Other standards applicable from 1 January 2024 have been evaluated by the Group and have no material impact on these
Consolidated Financial Statements.
New standards and interpretations not yet adopted by the European Union
IFRS 18 – Presentation and Disclosure in Financial Statements. IFRS 18 was issued in April 2024 and applies to an annual
reporting period beginning on or after 1 January 2027.
IFRS 19 – Subsidiaries without Public Accountability: Disclosures. IFRS 19 was issued in May 2024 and applies to an annual
reporting period beginning on or after 1 January 2027.
Annual Improvements to IFRS - Volume 11 was issued in July 2024 and applies to an annual reporting period beginning on or
after 1 January 2026.
1.23. Geopolitical instability
The ongoing conflicts in Ukraine and the Middle East, and any possible escalations that may follow as well as, the macroeconomic
headwinds related to persistently high inflation, interest rates, deglobalisation and other factors have impacted the economy and
financial markets globally.
The Group’s exposure to markets with which conflicts are ongoing is limited (Note 2.30 Country risks).
As a consequence, these consolidated financial statements were prepared with particular attention to (i) the impairment of non-
current assets, (ii) the appropriateness of the allowance for trade receivables, unbilled revenue and work in progress, (iii) the level
of provision for risks, as well as (iv) accounting for government grants. No material impacts were recognised in these consolidated
financial statements, except those listed in Notes 2.9, 2.10, 2.14 and 2.40.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
266
2. Notes to the Consolidated Financial Statements
2.1. Segment information
Operating segments are components of the Group’s business activities about which separate financial information is available
that is evaluated regularly by the Chief Operating Decision Maker (“CODM”). The Group is very decentralised with a large number
of small and medium size companies in many countries. For practical reasons, the sets of information provided to the CODM, who
is the Chief Executive Officer of the Group, aggregate these legal entities based on geographical areas and leadership structure.
This aggregation can vary over time depending on changes in management, organisation or leadership. The rapid evolving nature
of the Group also results in a constant adaptation of the matrix of its organisation. When necessary, the CODM may review
financial information at a more disaggregated level.
Eurofins has three reportable segments: Europe, North America and Rest of the World.
Europe is the combination of three reporting segments (Groups of Cash Generating Units): France, DACH countries (Germany,
Austria and Switzerland) and Other European Countries (OEC). Other European Countries include Benelux, Nordic Region, UK
and Ireland, Southern Europe and Central & Eastern Europe. North America corresponds to the U.S. and Canada. As Eurofins
still generates modest revenues in Asia and Middle East, South America, Australia and New Zealand, those 3 regions that
represent future growth potential are followed internally in a single segment “Rest of the World”.
The key segmental performance measures are the EBITDA and EBITAS, which Management believes are the most relevant
measures to evaluate the financial performance of the reportable segments.
In € millions
2024
Europe
North
America
Rest of the
World
Group service
functions
1
Total
Revenues
3,549.1
2,660.3
741.6
-
6,951.0
Intersegment revenues
2
55.4
34.9
28.8
-
119.2
Operating costs, net
-2,951.1
-1,939.4
-580.3
-40.9
-5,511.6
EBITDA
598.0
720.9
161.4
-40.9
1,439.4
Depreciation and amortisation
-265.5
-189.2
-78.0
-64.1
-596.9
EBITAS
332.5
531.7
83.4
-105.0
842.5
Share-based payment charge and
acquisition-related expenses, net
-29.9
-74.5
-4.3
-29.6
-138.3
Gain and loss on disposal of subsidiaries,
net
-9.5
-
-14.0
-0.1
-23.6
EBIT
293.0
457.2
65.1
-134.8
680.5
Finance income
1.3
0.1
1.1
21.8
24.2
Finance costs
-23.5
-17.5
-10.1
-100.1
-151.2
Share of profit of associates
0.5
-
-
0.5
1.0
Profit before income taxes
271.2
439.8
56.1
-212.5
554.6
Income tax expense
-41.2
-32.3
-13.1
-62.5
-149.1
Net profit for the year
230.0
407.5
43.0
-275.1
405.5
Total assets
3
4,502.4
4,453.5
1,264.7
667.7
10,888.4
Cash and cash equivalents
98.1
23.0
105.3
387.4
613.9
Net capex
3
-187.7
-200.8
-68.4
-61.3
-518.2
2023
Revenues
3,306.3
2,507.1
701.2
-
6,514.6
Intersegment revenues
2
52.4
35.4
23.4
0.1
111.3
Operating costs, net
-2,843.5
-1,852.6
-562.3
-21.8
-5,280.2
EBITDA
462.8
654.5
138.9
-21.8
1,234.4
Depreciation and amortisation
-259.9
-172.7
-74.2
-58.1
-565.0
EBITAS
202.9
481.8
64.7
-80.0
669.4
Share-based payment charge and
acquisition-related expenses, net
-46.9
-71.0
-12.2
-7.6
-137.7
Gain and loss on disposal of subsidiaries,
net
-1.2
-
-
-0.6
-1.8
EBIT
154.8
410.8
52.6
-88.2
529.9
Finance income
1.6
0.4
1.0
19.9
22.8
Finance costs
-21.4
-15.9
-11.0
-81.5
-129.8
Share of profit of associates
-
-
-
0.4
0.4
Profit before income taxes
134.9
395.2
42.6
-149.4
423.3
Income tax expense
-30.8
-26.3
-15.6
-42.8
-115.5
Net profit for the year
104.1
369.0
27.0
-192.2
307.8
Total assets
3
4,440.3
3,873.9
1,244.6
1,329.7
10,888.6
Cash and cash equivalents
103.1
9.4
95.6
1,013.1
1,221.2
Net capex
3
-193.7
-215.2
-68.2
-66.6
-543.6
1
Corresponds to Group services functions (GSF) for Income Statement information and Group holding companies’ transactions for the other captions.
2
Intersegment revenues are limited between segments and made at arm’s length, but intrasegment revenues are more significant within each segment under Eurofins hub
and spoke model.
3
Total assets and Net capex are shown in the geographical area in which the assets are located.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
267
2.2. Revenues
Set out below is the reconciliation of the revenue from contracts with customers with the amounts disclosed in the segment
information (Note 2.1):
In € millions
Europe
North America
Rest of the World
Total
2024
2023
2024
2023
2024
2023
2024
2023
Major service lines
Sample-based business
3,031.5
2,809.3
2,119.4
1,962.1
661.0
616.1
5,811.9
5,387.5
Study-based business
257.9
267.3
221.4
222.8
41.8
50.8
521.0
540.9
FTE-based business
203.3
179.5
236.9
238.9
37.7
30.4
477.8
448.8
Product-based business
55.2
49.8
82.7
83.3
1.0
4.0
138.9
137.0
Other
1.3
0.4
-
-
0.1
-
1.4
0.4
Total
3,549.1
3,306.3
2,660.3
2,507.1
741.6
701.2
6,951.0
6,514.6
Timing of revenue
recognition
Revenue recognised at a
point in time
1,107.5
1,042.4
792.9
761.5
106.5
79.0
2,006.8
1,882.9
Revenue recognised over
time
2,441.6
2,263.9
1,867.4
1,745.5
635.1
622.2
4,944.2
4,631.7
Total
3,549.1
3,306.3
2,660.3
2,507.1
741.6
701.2
6,951.0
6,514.6
The Group’s contract balances are as follows:
In € millions
Note
2024
2023
Accrued sales
127.6
139.9
Amounts due by customers for analysis in progress
178.5
167.8
Contract assets
2.15
306.2
307.7
Advance payments received
-45.6
-65.2
Deferred revenues
-150.4
-127.6
Contract liabilities
-195.9
-192.8
Net Balance Sheet position
110.2
114.9
% of total revenues due by customers for analysis in progress, net of deferred revenues
0.4%
0.6%
The part of contract assets and liabilities that are not unwounded during the subsequent year is not material.
The remaining performance obligations (unsatisfied or partially satisfied) on contracts with a duration over a year, expected to be
recognised in the following years amount over €350m as of 31 December 2024, of which 2/3 are expected to be recognised in
revenue in 2025.
2.3. Operating costs, net
In € millions
2024
2023
Cost of materials and services
-2,238.8
-2,151.1
Personnel expenses
-3,226.8
-3,078.8
Other operating income and expenses, net
-46.0
-50.3
Total
-5,511.6
-5,280.2
Other operating income and expenses are mainly related to one-off costs from integration, reorganisation, discontinued operations
and other non-recurring income and costs included in SDI, see Note 2.5 for further details.
2.4. Employees
The average number of full-time employees per geographical location is summarised as follows:
Weighted average
2024
2023
Europe
30,649
30,716
North America
14,468
14,415
Rest of the World
11,857
11,636
Total FTE
1
56,974
56,767
As of 31 December 2024, the total headcount within the Group reached 62,696 employees (61,798 in 2023).
1
In 2024, FTE in Group service functions represent 3,249 FTE (3,221 in 2023).
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
268
2.5. Separately disclosed items
In € millions
2024
2023
Not
e
One-off results
related to
mature scope
Temporary
losses and
other
costs/income
related to non-
mature scope
Total
SDI
One-off
results
related
to
mature
scope
Temporary
losses and
other
costs/income
related to non-
mature scope
Total
SDI
Revenues
396.2
325.2
Operating costs, net
-41.7
-467.3
-37.7
-416.8
EBITDA
-41.7
-71.1
-112.9
-37.7
-91.6
-129.3
Depreciation and amortisation
-2.6
-58.9
-61.5
-
-43.0
-43.0
EBITAS
-44.3
-130.0
-174.4
-37.7
-134.6
-172.3
Share-based payment charge and
acquisition-related expenses, net
2.6
-138.3
-137.7
Gain and loss on disposal of
subsidiaries, net
2.26
-23.6
-1.8
EBIT
-336.3
-311.8
Finance income
16.6
7.9
Finance costs
-9.3
-9.0
Net finance costs related to borrowing
and investing excess cash and one-
off financial effects (net of finance
income)
7.3
-1.1
Tax effect from the adjustment of all
separately disclosed items
47.5
52.9
Net Profit impact
-281.6
-260.0
Non-controlling interests of separately
disclosed items
-0.5
-0.1
Earnings attributable to owners and
hybrid capital investors impact
-281.1
-259.9
Earnings attributable to hybrid capital
investors impact (net finance costs
related to hybrid capital excess cash)
-4.6
-5.9
The EBITDA impact of the Separately Disclosed Items (SDIs) amounted to €112.9m (€129.3m in 2023). This includes one-off
costs from network expansion, integrations, reorganisations and discontinued operations, and other non-recurring income in our
mature business, and temporary losses and other costs and income from our non-mature scope related to start-ups and
acquisitions in significant restructuring.
Start-ups and acquisitions undergoing significant restructuring
The revenues related to start-ups and acquisitions undergoing significant restructuring amounted to €396.2m in 2024 (€325.2m
in 2023).
With operating costs of €467.3m in 2024 and €416.8m in 2023, this scope generated losses at EBITDA level totalling to €71.1m,
significantly lower than in 2023 (€91.6m). This decrease was primarily due to improvements in profitability in many start-up
activities, notably in the Genomics and In Vitro Diagnostics (IVD) business lines as they continue making progress with post-
COVID refocussing measures.
Depreciation costs increased in 2024 mainly due to the higher number of start-ups and amounted to €58.9m (€43.0m in 2023).
Consequently, this scope generated losses at EBITAS level totalling to €130.0m, which is slightly lower than in 2023 (€134.6m).
One-off costs from network expansion, integrations, reorganisations and discontinued operations, and other non-
recurring income and costs
One-off costs from network expansion, integrations, reorganisations and discontinued operations, and other non-recurring income
and costs in the mature scope totalled €41.7m and contain significant amounts for the closure of two sites (one in Germany, one
in the U.S.) and ongoing restructuring actions.
Net finance costs related to borrowing and investing excess cash and one-off financial effects (net of finance income)
The finance costs included within the SDIs for 2024 relate primarily to interest paid on excess cash as in 2023. In 2024, the
average monthly cash balance, net of overdrafts was €848m (€882m in 2023). The position as of 31 December 2024 was €613m
(€1,221m as of 31 December 2023). This led to a decreasing average excess cash of €502m in 2024 (€556m in 2023). This
excess cash has generated interest income for an amount of €16.6m (€7.9m in 2023) included in the line “Other financial income”
(Note 2.7).
The borrowing and investment of this excess cash have generated net finance income of €+7.3m and an impact of €-4.6m on
earnings attributable to hybrid capital investors in 2024 (€-1.1m and €-5.9m respectively in 2023).
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
269
2.6. Share-based payment charge and acquisition-related expenses, net
In € millions
Note
2024
2023
Share-based payment charge
2.27
-21.8
-23.3
Amortisation of acquired intangible assets
2.11
-94.7
-99.3
Impairment of acquired intangible assets
2.11
-17.1
-29.8
Transaction costs related to acquisitions
-10.3
-8.2
Negative goodwill
2.3
-
Break-up fee related to a transaction
-13.5
-
Unused amounts due for business acquisitions
2.22
16.8
22.9
Acquisition-related expenses, net
-116.5
-114.4
Total
-138.3
-137.7
Amortisation of intangible assets decreased by €4.6m due to previous year impairments (Note 2.11).
Break-up fee concerns an aborted deal in Poland. Negative goodwill is in relation with a Japanese acquisition.
The impairment of acquired intangible assets and reversal of unused amounts due for business acquisitions is primarily related
to Transplant Genomics Inc. in 2024 and 2023. In April 2023, Transplant Genomics Inc. in the U.S. has been significantly impacted
by the termination of the OmniGraf dual-biomarker rejection panel following revised billing guidance by MolDX in the U.S. effective
1 April 2023 (sales of €14.6m in 2023, none in 2024).
2.7. Finance income and costs
In € millions
Note
2024
2023
Net foreign exchange gain
1
4.9
11.2
Other financial income
19.3
11.6
Finance income
24.2
22.8
Interest expense on:
Borrowings
2.18
-19.2
-13.0
Bonds
2.18
-74.9
-60.4
Schuldschein loan
2.18
-16.0
-16.0
Lease liabilities
2.18
-31.6
-29.3
Defined benefit plans
2.23
-2.5
-2.1
Unwind of discount on amounts due for business acquisitions
2.22
-1.8
-3.9
Unwind of discount on issuance costs
2.18
-4.8
-4.7
Derivative financial instruments on interest rate hedging, net
2.30
-0.3
-0.3
Finance costs
-151.2
-129.8
Total Finance income and costs, net
-126.9
-107.0
1
In Cash flows from operating activities, “Finance income and costs, net” exclude operating foreign exchange gains & losses (€-0.5m in 2024 and €-2.9m in 2023).
Total finance income and costs, net amounted to €126.9m in 2024, compared to €107.0m in 2023, due to higher interest expenses
for bonds, in particular due to the redemption of a €448m Eurobond in June 2024 with an annual fixed rate coupon of 2.125% that
was refinanced by a €600m senior unsecured Eurobond issued in August 2023 and due in September 2030 that bears an annual
fixed rate coupon of 4.75%.
In 2024, the net foreign exchange gain is caused by the partial repayment of an U.S. intercompany loan considered as net
investment versus its historical rate offset by an appreciation of 6.6% of the USD and depreciation of 4.3% of the JPY versus €
(using Consolidated balance sheet end of period exchange rates). Net foreign exchange gain in 2023 was mainly caused by the
depreciation of 3.0% of the USD and of 9.8% of the JPY versus €.
Other financial income was mainly generated by cash deposit interests.
2.8. Income and deferred tax
In 2024, the income tax expense amounted to €149.1m (€115.5m in 2023).
The components of income tax expense are as follows:
In € millions
2024
2023
Current tax expense
-180.1
-156.9
Global Minimum top-up tax
-5.0
-
Deferred tax income
35.9
41.4
Income tax expense
-149.1
-115.5
Eurofins’ operations are subject to income taxes in various jurisdictions. The statutory income tax rate varies by country and the
one of Luxembourg remains unchanged at 24.94% in 2024.
The reconciliation of the weighted average statutory income tax rate to the effective income tax rate is as follows:
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
270
In € millions
2024
2023
Profit before income taxes
554.6
423.3
Theoretical income tax expense
-98.0
-68.7
Weighted average theoretical income tax rate (%)
17.7%
16.2%
Withholding and other taxes
1
-23.0
-23.3
Global Minimum top-up tax
-5.0
-
Non-deductible expenses (-) / Non-taxable income (+)
2
-69.5
-41.9
Deductible expenses not accounted for in the Consolidated Income Statement
3
114.4
95.6
Unrecognised tax losses and credit carryforwards
4
-60.0
-61.7
Tax adjustments due to changes in tax treatments
-8.0
-15.5
Effective income tax expense
-149.1
-115.5
Effective income tax rate
26.9%
27.3%
1
This line includes taxes based on other taxable income aggregate such as CVAE (“Cotisation sur la Valeur Ajoutée des
Entreprises”) in France and IRAP (“Imposta Regionale Sulle Attività Produttive”) in Italy as well as withholding taxes and non-
recoverable value added tax.
2
Non-deductible expenses are mainly related to (financing) costs not deductible in Luxembourg due to domestic tax rules and the
Base Erosion and Anti-Abuse Tax (BEAT) in the U.S.
3
Deductible expenses not accounted for in the Consolidated Income Statement are mainly related to the tax deductible
impairments of equity shares performed in Luxemburg but eliminated at consolidation level.
4
Unrecognised tax losses are linked to tax losses for which the probability of use is considered as not sufficient to recognise
deferred tax assets as of 31 December 2024.
The income tax paid for each period is the following:
In € millions
2024
2023
Income taxes paid
-160.7
-139.7
Income taxes paid in 2024 are higher than the amount paid in 2023 in relation with the improvement of the profitability and resulting
taxable income.
In € millions
2024
2023
Corporate income tax assets
101.8
118.3
Corporate income tax liabilities
35.5
26.7
Corporate income tax assets and liabilities, net
66.3
91.6
Deferred tax positions are shown on the balance sheet as follows:
2024
2023
In € millions
Deferred tax
assets
Deferred tax
liabilities
Deferred tax
assets
Deferred tax
liabilities
Total deferred tax assets / (liabilities)
210.1
-189.3
164.0
-180.2
Offset of deferred taxes
-79.8
79.8
-70.2
70.2
Deferred tax assets / (liabilities), net
130.3
-109.5
93.8
-110.0
Deferred tax assets and liabilities positions, net
-
20.8
-
-16.2
Movements in net deferred tax assets and liabilities relate to the following underlying assets and liabilities and tax loss carry
forwards (including tax credit carry forwards) as presented in the table below:
In € millions
Classification
2024
2023
Balance as of 1 January
-16.2
-57.9
Business combinations
5.0
-0.4
Deferred taxes on retirement benefit obligations and FVOCI
change in OCI
-4.2
1.1
Deferred taxes on net investment hedge
change in OCI
-
-
Deferred taxes on hybrid capital distribution
change in Equity
3.4
-
Tax credit relating to share-based payment charge
change in Equity
-3.4
-1.7
Deferred tax income
Income Statement
35.9
41.4
Translation differences and other
0.3
1.2
Balance as of 31 December
20.8
-16.2
Deferred tax assets are recognised for temporary differences, unused tax loss and tax credits carried forward to the extent that
realisation of the related tax benefits is probable. The ultimate realisation of deferred tax assets depends on the taxable income
to be generated in the countries where they were recognised and during the periods when they become deductible. Management
considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making
this assessment.
The Business combinations relate to the deferred taxes on intangible assets recognised on the purchase price allocation (Note
2.26). Tax credits reversals relating to share-based payment charge are linked to U.S. leaders’ potential gains on stock options
that are tax deductible (€-3.4m in 2024 versus €-1.7m in 2023) and are adjusted in relation with the share price development.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
271
In 2024, deferred tax liabilities related to the net investment hedge positive revaluation are netted directly against deferred tax
assets on capital hybrid distribution and tax losses without any impact on OCI and Equity due to the loss-making situation of the
Luxembourg tax unity.
Movements in deferred tax assets and liabilities during the year are broken down as follows:
In € millions
2024
Balance
as of
1
January
Recognised
in Income
Statement
Recognised
in Equity &
OCI
Business
combina-
tions
Translation
differences
and other
Balance
as of
31 December
Goodwill, Intangible
& accelerated tax depreciation
-239.7
17.9
-
-4.4
-9.8
-235.9
Property, plant and equipment
36.0
14.1
-
0.4
-0.9
49.5
Tax loss carryforwards
36.0
-3.5
3.4
4.9
0.1
40.9
Retirement benefit obligations
12.2
1.1
-1.4
0.5
0.2
12.7
Other liabilities
139.3
6.2
-6.2
3.6
10.6
153.6
Net deferred tax assets/liabilities
-16.2
35.9
-4.2
5.0
0.3
20.8
2023
Goodwill, Intangible
& accelerated tax depreciation
-247.6
6.8
-
-1.6
2.7
-239.7
Property, plant and equipment
43.4
-7.9
-
0.4
0.1
36.0
Tax loss carryforwards
23.9
8.2
-
-0.2
4.0
36.0
Retirement benefit obligations
12.5
-0.7
1.0
-
-0.5
12.2
Other liabilities
109.9
35.0
-1.6
1.1
-5.0
139.3
Net deferred tax assets/liabilities
-57.9
41.4
-0.6
-0.3
1.3
-16.2
The deferred tax liabilities on temporary differences in intangible assets amortisation and fixed assets depreciation are related to
differences between amounts per consolidation books and amounts per tax books on intangible assets recognised as part of the
acquisition; and on fixed assets and goodwill in case of taxable stock acquisition (e.g., eligible under §338(h)(10) in the US). No
deferred tax is recognised for non-tax-deductible goodwill amounts.
In 2024, the Group reversed deferred tax valuation allowances for €21.1m and activated interest limitations for €22m following a
reorganisation of its U.S. based operations.
As of 31 December 2024, the Group held an aggregate amount of €1,505m (€1,140m in 2023) of tax losses carried forward that
can be offset against future taxable income and for which no deferred tax assets have been recognised due to the uncertainty of
their future use.
The Group has available tax loss and credit carryforwards which expire as follows:
2024
2023
In € millions
Total
Balance
Losses
activated
Unrecognised
balance
Total
Balance
Losses
activated
Unrecognised
balance
< 5 years
76
-
75
38
1
37
5 to 15 years
76
7
69
57
8
49
>15 years
1,527
166
1,361
1,194
140
1,054
Total
1,678
173
1,505
1,289
149
1,140
The increase in tax losses carried forwarded is mainly from Luxembourg, France and Germany.
In 2024, the Group activated tax losses in Eurofins Infinity Laboratory Group, LLC for an amount of €24.0m as part of its U.S. tax
unity (Eurofins US Holdings, Inc.).
The deferred tax assets on tax losses capitalised mainly include Eurofins Scientific SE (French branch) (€21.3m), Eurofins US
Holdings, Inc. (€13.6m), Eurofins Biologie Spécialisée SAS (€3.0m) in France and Eurofins Electric & Electronic Product Testing
(€1.0m) in Switzerland, with an expectation to be used within the next seven years.
Pillar Two corporate income tax legislation
As of December 2023, the government of the Grand Duchy of Luxembourg, where the ultimate parent entity is incorporated, has
enacted Pillar Two Global anti-Base Erosion (GloBE) Model rules as per “European Union Directive on ensuring a global minimum
level of taxation for multinational enterprise groups and large-scale domestic groups in the Union” which aims to ensure an
effective tax rate of at least 15 per cent for in-scope multinationals. Several jurisdictions in which the Group operates have enacted
or substantially enacted similar legislation.
The Group applies the IAS 12 exception to recognising and disclosing information about deferred tax assets and liabilities related
to Pillar Two income taxes.
As of December 2024, most of Eurofins jurisdictions should benefit from the transitional country-by-country report (CbCR) safe
harbours and a top-up tax should only be applicable in Ireland (€ 5.0m), where the current domestic corporate income tax rate is
below 15 per cent. The impact of the Pillar Two Global Minimum Tax is thus assessed to be limited on both the Group’s effective
tax rate and the income tax expense for financial year 2024.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
272
2.9. Property, plant and equipment
In € millions
Land, buildings and
leasehold
improvements
Machinery and
laboratory
equipment
Office and IT
equipment,
furniture and
vehicles
Assets in
progress
Total
Owned
1
Right of
use
assets
Owned
Right of
use
assets
Owned
Right of
use
assets
Owned
1
Owned
Right of
use
assets
Total
2024
Cost
1,454.8
795.6
1,926.3
29.4
449.0
57.6
206.4
4,036.5
882.6
4,919.1
Accumulated
depreciation
-529.0
-297.0
-1,426.6
-26.2
-316.1
-26.7
-
-2,271.7
-350.0
-2,621.7
Balance as of
1 January
925.8
498.6
499.7
3.2
132.9
30.9
206.4
1,764.8
532.6
2,297.4
Business
Combinations
32.5
38.1
28.6
0.2
5.1
-
0.1
66.4
38.3
104.7
Additions
216.2
130.2
222.2
0.3
43.1
27.6
18.1
499.6
158.1
657.7
Divestments
-0.4
-0.9
-0.5
-
-0.1
-
-
-0.9
-0.9
-1.9
Disposals
-7.1
-10.1
-5.0
-0.1
-1.0
-3.6
-
-13.2
-13.8
-27.0
Depreciation
-119.7
-143.9
-191.7
-1.1
-52.2
-18.6
-
-363.5
-163.6
-527.1
Impairment
-
-
-
-
-
-
-
-
-
-
Translation
differences
and other
2
28.9
10.8
12.6
-0.3
1.7
-0.1
2.4
45.7
10.4
56.1
Balance as of
31 December
1,076.3
522.6
566.0
2.1
129.5
36.3
227.1
1,998.8
561.0
2,559.8
Cost
1,723.5
775.5
2,146.4
19.7
475.7
67.2
227.1
4,572.7
862.4
5,435.1
Accumulated
depreciation
-647.2
-253.0
-1,580.5
-17.6
-346.2
-30.8
-
-2,573.9
-301.4
-2,875.2
Owned
1
Right of
use
assets
Owned
Right of
use
assets
Owned
Right of
use
assets
Owned
1
Owned
Right of
use
assets
Total
2023
Cost
1,282.4
871.6
1,819.6
28.2
449.7
50.8
234.4
3,786.1
950.6
4,736.7
Accumulated
depreciation
-456.1
-423.0
-1,334.8
-23.1
-306.6
-25.5
-
-2,097.5
-471.6
-2,569.1
Balance as of
1 January
826.4
448.6
484.8
5.1
143.1
25.3
234.4
1,688.6
479.0
2,167.7
Business
Combinations
5.1
17.3
5.1
0.1
1.1
-
0.6
11.9
17.3
29.2
Additions
207.1
180.4
204.1
1.1
51.8
25.4
5.7
468.7
206.9
675.5
Disposals
-8.8
-8.9
-7.2
-0.6
-1.4
-3.3
-
-17.4
-12.8
-30.1
Depreciation
-105.0
-131.4
-192.0
-3.3
-54.1
-16.4
-
-351.1
-151.2
-502.3
Impairment
-
-
-
-
-
-
-
-
-
-
Translation
differences
and other
1.1
-7.5
5.0
0.8
-7.7
-0.1
-34.3
-35.9
-6.7
-42.6
Balance as of
31 December
925.8
498.6
499.7
3.2
132.9
30.9
206.4
1,764.8
532.6
2,297.4
Cost
1,454.8
795.6
1,926.3
29.4
449.0
57.6
206.4
4,036.5
882.6
4,919.1
Accumulated
depreciation
-529.0
-297.0
-1,426.6
-26.2
-316.1
-26.7
-
-2,271.7
-350.0
-2,621.7
1
Owned land, buildings and leasehold improvements and assets in progress include investment in some owned Group sites and
leasehold improvements in third party sites. Land and buildings in owned Group sites represent a value above €850m.
2
In 2024, over €40m of the total assets under development were capitalised to buildings and building improvements at sites
owned by the company.
Write-offs and losses on disposal of property, plant and equipment amounted to €3.1m in 2024 (€10.1m in 2023).
Depreciation on fixed assets is calculated using the straight-line method to write off their cost to their residual values over their
estimated useful lives as follows:
▪ Buildings 20 years
▪ Leasehold improvements less than 10 years
▪ Machinery and laboratory equipment 5 years
▪ Office and IT equipment, furniture and vehicles 3-5 years
▪ Right of Use over the lease period.
Land represents a value of €197.5m as of 31 December 2024 and is not depreciated as it is deemed to have an indefinite life.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
273
In € millions
Note
2024
2023
Additions (from table above)
499.6
468.7
Capex trade accruals and payables change of the period
2.25
-46.0
9.5
Purchase of property, plant and equipment (Cash Flow Statement)
453.6
478.1
2.10. Goodwill
Eurofins has identified five groups of cash generating units: France, DACH countries (Germany/Austria/Switzerland), Other
European Countries (OEC), North America and Rest of the World (ROW).
The following is a summary of the goodwill allocation for each group of CGUs as of 31 December:
In € millions
2024
North
America
France
DACH
OEC
ROW
Total
Opening balance
1,987.0
965.0
338.2
780.0
481.2
4,551.4
Acquisition through business
combinations
1
112.6
1.0
36.5
31.8
1.1
183.1
Divestment
-
-0.4
-3.2
-5.5
-20.2
-29.2
Impairment
-
-
-
-
-
-
Translation differences and other
2
142.5
3.7
-7.7
-0.1
-3.0
135.4
Closing balance
2,242.0
969.3
363.9
806.3
459.1
4,840.7
Gross value
2,242.0
969.3
363.9
808.3
470.1
4,853.7
Impairment
-
-
-
-2.0
-11.0
-13.0
2023
North
America
France
DACH
OEC
ROW
Total
Gross value
2,039.0
984.2
319.8
703.0
491.1
4,537.1
Impairment
-
-
-
2.0
11.0
13.0
Opening balance
2,039.0
984.2
319.8
701.0
480.1
4,524.1
Acquisition through business
combinations
1
10.7
2.8
16.2
62.3
22.3
114.3
Divestment
-1.2
-6.1
-
-1.7
-
-9.0
Impairment
-
-
-
-
-
-
Translation differences and other
2
-61.5
-15.9
2.3
18.4
-21.2
-78.0
Closing balance
1,987.0
965.0
338.2
780.0
481.2
4,551.4
Gross value
1,987.0
965.0
338.2
782.0
492.2
4,564.4
Impairment
-
-
-
-2.0
-11.0
-13.0
1
In 2024, some amounts have been modified in the 12 months period in Belgium for an amount of €3.2m.
2
In 2024, part of the Goodwill recorded has been reallocated between the group of CGUs in relation with acquisitions in mutli-countries: Rest of the World €-2.8m, DACH €-
7.2m and North America €+9.9m, Other European Countries €-3.7m, France €+3.7m.
The “Acquisition through business combinations” and “Divestment” disclosures are further detailed in Note 2.26, 3.2 and 3.4.
Goodwill Impairment testing
The calculation model description is provided in Note 1.6.
For impairment testing, goodwill is allocated to cash generating units (typically one level below segment level, i.e., at the business
level), which represent the lowest level at which the goodwill is monitored internally for management purposes.
Unless otherwise noted, the basis of the recoverable amount used in the annual impairment tests for the units disclosed further
in this Note is the value in use.
Key assumptions used in the value in use impairment tests for the units were sales growth rates, EBITDA margin and the rates
used for discounting the projected cash flows (WACC). These cash flow projections were determined using Eurofins
management’s internal forecasts that cover an initial period from 2025 to 2029 after which a terminal value was calculated for
2030. For terminal value calculation, growth rates were capped at a historical long-term average growth rate. This methodology
is consistent with the methodology applied in prior periods.
The sales growth rates and EBITDA margin used to estimate cash flows are based on past performance, external market growth
assumptions and industry long-term growth averages. Management believes that the volume of sales in each period is the main
driver for revenue and costs.
Eurofins takes into consideration the impact of inflation on profits, margins, liquidity, climate risk as well as on the overall level of
activity in its assumptions.
The rates used for discounting the projected cash flows in goodwill impairment testing is based on a Weighted Average Cost of
Capital (WACC), which in turn is based on business-specific inputs along with other inputs. The WACC is based on post-tax cost
of equity and cost of debt, and is further calculated based on market data and inputs to accurately capture changes to the time
value of money, such as the risk-free interest rate, the beta factor and country risk premium. As required by IAS 36, pre-tax
discount rate is derived from the WACC.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
274
In order to properly reflect the different risk-profiles of different businesses, a WACC is determined for each group of CGUs.
The key assumptions used for value in use calculations and values in use are as follows:
In € millions
Long term growth rate
Pre-tax discount rate
Value in use
2024
2023
2024
2023
2024
2023
North America
2.0%
2.5%
7.7%
7.3%
10,415
12,324
France
1.5%
2.0%
8.6%
8.3%
1,824
2,302
DACH
1.5%
2.0%
8.1%
7.6%
1,104
1,369
OEC
2.0%
2.5%
8.5%
8.6%
4,403
3,970
ROW
3.0%
3.5%
8.9%
8.8%
1,943
2,198
Total
19,689
22,163
The average annual growth rate of the revenues over the initial five-year period used in 2024 is between 2.5% and 7.3% depending
on the geographical area (was between 0.4% and 7.3% in 2023).
The average EBITDA margin used varies between 14% and 26% of the revenues depending on the geographic area for the five-
year period (same as in 2023).
Long term growth rates used to extrapolate cash flows beyond the initial five-year period have been decreased by 50bps to cap
the terminal value pre-tax at an amount inferior to 80% of the total value. This created a decrease of the value in use ca. 2bn€,
still leaving ample headroom vs goodwill values in each CGU.
Net assets amount to €3,052m and include land and buildings net book value in 2024. Impairment test was run at 31 December
2024.
In 2024, no impairment is required as these values are above the carrying value of each group of CGUs. As a result, the
accumulated impairment was €13.0m as of 31 December 2024 (same in 2023).
The results of the annual impairment test indicate that a reasonably possible change in key assumptions would not cause the
value in use to fall below the carrying value for any of the Group CGUs (e.g. increasing or decreasing any assumptions (WACC,
Long Term growth rate & Target EBITDA margin), individually or combined with +/-100 bps would not lead to any impairment).
2.11. Other intangible assets
In € millions
Intangible assets
related to
acquisitions
1
Software
2
Other intangible
assets
Total
2024
Cost
1,384.5
563.0
18.6
1,966.1
Accumulated amortisation
-737.6
-426.5
-5.9
-1,170.1
Balance as of 1 January
646.9
136.5
12.7
796.0
Business combinations
76.8
0.3
-0.2
76.9
Additions
-
74.1
0.6
74.8
Disposals
-
-0.1
-
-0.1
Divestment
-3.5
-0.2
-
-3.6
Depreciation
-
-70.5
0.9
-69.6
Amortisation of acquired assets
-94.7
-
-
-94.7
Impairment
-17.1
-
-
-17.1
Translation differences and other
25.0
-1.4
1.7
25.3
Balance as of 31 December
633.4
138.7
15.7
787.8
Cost
1,505.5
620.2
22.4
2,148.2
Accumulated amortisation
-872.1
-481.6
-6.7
-1,360.3
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
275
2023
Cost
1,407.3
492.9
18.0
1,918.2
Accumulated amortisation
-623.1
-371.6
-4.4
-999.2
Balance as of 1 January
784.2
121.3
13.6
919.1
Business combinations
9.5
5.2
0.3
15.1
Additions
-
71.2
0.8
72.0
Divestment
-1.0
-0.5
-
-1.5
Depreciation
-
-61.3
-1.4
-62.7
Amortisation of acquired assets
-99.3
-
-
-99.3
Impairment
-29.8
-
-
-29.8
Translation differences and other
-16.6
0.5
-0.7
-16.8
Balance as of 31 December
646.9
136.5
12.7
796.0
Cost
1,384.5
563.0
18.6
1,966.1
Accumulated amortisation
-737.6
-426.5
-5.9
-1,170.1
1
In 2024, intangible assets related to acquisitions increased by €76.8m. Balance of intangible assets related to acquisitions as of
31 December 2024 include customer relationships (€562m), technology (€35m), tradename (€27m), and other (i.e., branding and
marketing, backlog, non-compete agreements assets: €9m). Main items include customer relationships of Food Chemistry Testing
Madison (ex-Covance) (€76m) and
EAG (€72m) that will be fully amortised in 8 years.
2
Software includes €59.9m of internal development costs capitalised in 2024 (versus €64m in 2023).
The expected useful lives of the intangible assets excluding goodwill are as follows:
▪ Software development costs capitalised and software licences are amortised over their estimated useful life (maximum
period of 3 years).
▪ Customer relationships are amortised on a straight-line basis over their estimated useful lives (maximum period of 13
years). For outsourcing deals signed with a sales contract, the amortisation period is aligned with the duration of the
contract.
▪ Technology and other intangible assets are amortised on a straight-line basis over their estimated useful lives (maximum
period of 15 years).
▪ Tradename recognised on acquisitions are amortised on a systematic basis over their estimated useful lives (maximum
period of 25 years).
2.12. Investments in associates
Investment in associates (details in Note 3.6) amounted to €5.9m in 2024 (€5.3m in 2023).
Other investments in associates were as follows:
Main associates undertaking:
Revenues
Net profit
Total
assets
Equity
% of interest
In € millions
2024
1
Fasmac Co. Ltd. (JP)
11.1
1.3
9.5
8.6
41%
Eurofins Laboratoire Coeur de France SAEML (FR)
7.5
0.7
4.1
2.0
49%
Dermscan Asia Co., Ltd (TH)
1.4
0.4
1.5
1.2
34%
Z.F.D GmbH (DE)
2
-
-
-
-
33%
2023
1
Fasmac Co. Ltd. (JP)
11.0
1.0
9.7
8.2
41%
Eurofins Laboratoire Coeur de France SAEML (FR)
5.9
-0.3
3.2
1.3
49%
Dermscan Asia Co., Ltd (TH)
1.2
0.3
1.4
1.1
34%
Z.F.D GmbH (DE)
1.7
-
1.3
0.8
33%
1
Unaudited figures.
2
Z.F.D.GmbH (DE) figures from current period are not available.
TREX, Ltd (ZA) and Studio Radiologico Ruggiero revenues, net profit and total assets are not available, but immaterial for the
current period.
No investments in associates were made in publicly traded entities. These six companies are not considered to be material to the
Group.
Share of profit of associates amounted to €1.0m in 2024 (€0.4m in 2023).
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
276
2.13. Non-current financial assets
In € millions
2024
Non-current
financial assets at
FVTPL
1
Non-current
financial assets at
FVTOCI
2
Non-current financial
assets at amortised
cost
Total
Balance as of 1 January
-
19.3
59.0
78.3
Changes :
Acquisitions/additions
-
-
7.5
7.5
Sales/redemptions/reductions
-
-
-3.9
-3.9
Business combinations
-
-
-0.9
-0.9
Value adjustment through OCI
-
28.8
-
28.8
Value adjustment through P&L
-
-
-
-
Translation differences and other
-
1.0
0.7
1.7
Balance as of 31 December
-
49.1
62.4
111.5
2023
Balance as of 1 January
2.6
21.8
54.1
78.4
Changes :
Acquisitions/additions
-
-
8.7
8.7
Sales/redemptions/reductions
-
-
-10.2
-10.2
Business combinations
-2.6
-
8.2
5.6
Value adjustment through OCI
-
-1.6
-
-1.6
Value adjustment through P&L
-
-
-
-
Translation differences and other
-
-0.9
-1.8
-2.6
Balance as of 31 December
-
19.3
59.0
78.3
1
Fair value through profit or loss
2
Fair value through other comprehensive income
FVTOCI relates to an investment in Vimta Labs Limited, a publicly listed company in India.
Non-current financial assets at amortised cost are mainly lease deposits.
2.14. Inventories
In € millions
2024
2023
Inventories (gross)
156.7
156.7
Inventory allowance
-14.9
-17.7
Inventories, net
141.9
139.0
Gross value of inventories stabilised to €156.7m as of 31 December 2024 (€156.7m in 2023).
The cost of inventories recognised as an expense during the period and included in “Operating costs, net” amounts to €750.6m
in 2024 (2023: €730.2m).
2.15. Trade receivables
In € millions
2024
2023
Trade receivables (gross)
1,154.9
1,136.1
Valuation allowance
-60.5
-63.3
Trade receivables, net
1,094.3
1,072.8
The ageing analysis of trade receivables (gross) is set out below:
In € millions
2024
2023
Current
778.7
767.3
Overdue 1-90 days
263.6
246.9
Overdue 91-360 days
52.2
55.5
Overdue > 360 days
60.3
66.4
Total
1,154.9
1,136.1
Provision for impairment of trade receivables amounts to €60.5m in 2024 (€63.3m in 2023).
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
277
The maximum exposure to credit risk at the reporting date is the carrying value of the trade receivables mentioned above.
The loss allowance at 31 December 2024 and 31 December 2023 was determined as follows:
In € millions
2024
Current
1-90 days
past due
91-360 days
past due
Over 360 days
past due
1
Total
Expected credit loss rates
0.6%
2.3%
21.1%
69.9%
1
Trade accounts receivable (excl. VAT)
713.4
243.9
48.0
56.0
1,061.4
Contract assets (excl. VAT)
280.4
280.4
Loss allowance
5.6
5.7
10.1
39.1
60.5
1
A litigation of €19.5m related to Covid-19 activities is still pending in the Netherlands and partly accrued.
2023
Expected credit loss rates
0.5%
2.2%
19.1%
68.8%
1
Trade accounts receivable (excl. VAT)
711.1
230.7
52.3
62.4
1,056.5
Contract assets (excl. VAT)
283.4
283.4
Loss allowance
5.3
5.0
10.0
42.9
63.3
The Group does not hold any collateral as security.
For more details regarding the credit risk of the Group, refer to Note 2.30.
The contract assets were quite stable in 2024 vs 2023, like the contract liabilities.
2.16. Prepaid expenses and other current assets
In € millions
2024
2023
Prepaid expenses
85.7
84.9
Other receivables
106.4
118.0
Accrued interest receivables
0.1
0.2
Total
192.2
203.1
Other receivables correspond mainly to tax and social receivables.
2.17. Cash and cash equivalents, bank overdrafts and Net Debt
Cash and cash equivalents less bank overdrafts
In € millions
2024
2023
Short term deposits
83.3
472.1
Cash in hand
530.6
749.1
Cash and cash equivalents
613.9
1,221.2
Bank overdrafts
-0.6
-0.2
Total
613.2
1,220.9
Short term deposits with banks with a maturity below 3 months are mostly owned by Eurofins Finance Luxembourg S.à r.l. for
€54.9m.
Net debt
In € millions
Note
2024
2023
Total borrowings
2.18
3,610.3
3,926.7
Cash and cash equivalents
-613.9
-1,221.2
Total
2,996.4
2,705.5
In € millions
Valuation allowance
2024
2023
Balance as of 1 January
63.3
57.9
Additional allowance
9.2
27.6
Reversal
-17.0
-22.0
Business Combinations
2.3
0.4
Divestment
-0.4
-
Translation differences and other
3.0
-0.6
Balance as of 31 December
60.5
63.3
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
278
2.18. Borrowings
Variation of borrowings
In € millions
2024
Bonds
Schuld-
shein
Loan
Com-
mercial
Paper
Short
term
Money
Market
lines
Bank
Borro-
wings
Lease
Liabili-
ties
Issu-
ance
Costs
Treas-
ury
shares
in
transit
Total
Balance as of 1 January
2,700
536.5
-
-
137.2
578.9
-26.1
-
3,926.4
Cash impact
Increase of borrowings
-
-
30.0
50.0
38.0
-
-
-
118.0
Repayment of borrowings
-447.8
-
-
-
-30.0
-
-
-
-477.7
Repayment of lease
liabilities
1
-
-
-
-
-
-160.8
-
-
-160.8
Non cash impact
Lease subscriptions
-
-
-
-
-
158.1
-
-
158.1
Exit of lease liabilities
-
-
-
-
-
-17.3
-
-
-17.3
Amortisation of issuance
costs
-
-
-
-
-
-
4.8
-
4.8
Business combinations
-
-
-
-
3.9
38.0
-
-
42.0
Divestment
-
-
-
-
-
-1.0
-
-
-1.0
Treasury shares in transit
-
-
-
-
-
-
-
2.5
2.5
Translation differences
and other
-
-
-
-
3.1
11.5
-
-
14.6
Total
2,252.2
536.5
30.0
50.0
152.3
607.5
-21.3
2.5
3,609.7
Bank overdrafts
0.6
Balance as of 31
December
3,610.3
2023
Bonds
Schuld-
shein
Loan
Com-
mercial
Paper
Short
term
Money
Market
lines
Bank
Borro-
wings
Lease
Liabili-
ties
Issu-
ance
Costs
Treas-
ury
shares
in
transit
Total
Balance as of 1 January
2,100.0
536.5
75.0
-
109.9
527.6
-26.8
-
3,322.2
Cash impact
Increase of borrowings
600.0
-
-
-
42.6
-
-4.1
-
638.5
Repayment of borrowings
-
-
-75.0
-
-15.0
-
-
-
-90.0
Repayment of lease
liabilities
1
-
-
-
-
-
-151.2
-
-
-151.2
-
Non cash impact
-
Lease subscriptions
-
-
-
-
-
206.9
-
-
206.9
Exit of lease liabilities
-
-
-
-
-
-14.1
-
-
-14.1
Amortisation of issuance
costs
-
-
-
-
-
-
4.7
-
4.7
Business combinations
-
-
-
-
2.2
17.6
-
-
19.8
Translation differences
and other
-
-
-
-
-2.5
-7.8
-
-
-10.3
Total
2,700.0
536.5
-
-
137.2
578.9
-26.1
-
3,926.4
Bank overdrafts
0.2
Balance as of 31
December
3,926.7
1
Repayment of lease liabilities excl. interest paid (Note 2.7)
The split of the borrowings between current and non-current are as follows:
In € millions
2024
2023
Current
Non-Current
Total
Current
Non-Current
Total
Bonds
-
2,252.2
2,252.2
447.8
2,252.2
2,700.0
Schuldschein loan
233.5
303.0
536.5
-
536.5
536.5
Commercial paper
30.0
-
30.0
-
-
-
Short term Money Market
lines
50.0
-
50.0
-
-
-
Bank borrowings
16.3
136.0
152.3
15.1
122.0
137.2
Lease liabilities
150.2
457.3
607.5
142.7
436.1
578.9
Issuance costs
-4.3
-17.0
-21.3
-4.8
-21.3
-26.1
Treasury shares in transit
2.5
-
2.5
-
-
-
Bank overdrafts
0.6
-
0.6
0.2
-
0.2
Total borrowings
478.8
3,131.5
3,610.3
601.1
3,325.6
3,926.7
Eurobonds
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
279
In € millions
31 December
2024
31 December
2023
Nominal
value upon
issuance
Nominal
interest rate
Issue date
Maturity
Eurobond 2024
-
447.8
650.0
2.125%
July 2017
July 2024
Eurobond 2026
302.2
302.2
600.0
3.75%
May 2020
July 2026
Eurobond 2029
600.0
600.0
600.0
4.0%
June 2022
July 2029
Eurobond 2030
600.0
600.0
600.0
4.75%
August 2023
September 2030
Eurobond 2031
750.0
750.0
750.0
0.875%
May 2021
May 2031
Total
2,252.2
2,700.0
In June 2024, the Group repaid the €447.8m senior unsecured Eurobond 2024 (ISIN: XS1651444140) one month ahead of its
maturity date on 25 July 2024.
In August 2023, the Group raised €600m of senior unsecured Eurobonds. The bonds have a 7-year maturity (due on 6 September
2030) and bear an annual fixed rate coupon of 4.75%. The Bonds are listed on the regulated market of the Luxembourg stock
exchange (ISIN XS2676883114). The proceeds of those bonds were used to fund Eurofins’ general corporate purposes, including
the refinancing of the aforementioned outstanding €448m Fixed Rate Bonds (ISIN: XS1651444140).
The quoted values of the Company’s Eurobonds are disclosed in Note 2.34.
Commercial paper
In September 2017, Eurofins set up a Negotiable European Commercial Paper programme (“NEU CP”) on the French capital
market. This programme is used to issue short term notes with a minimum size of €0.2m and maturity of less than one year. The
maximum amount of the programme is €750m as of 31 December 2024 (same as of 31 December 2023).
At the end of December 2024, €30m notes were outstanding under this programme (€0m notes outstanding as of 31 December
2023).
Schuldschein loan
In July 2018, Eurofins issued a €550m Schuldschein loan (“Certificate of Indebtedness”). The Schuldschein loan was structured
in tranches with maturities of 4 and 7 years, with both fixed and floating interest rates. In the 4-year tranches, the fixed rate tranche
was priced at a fixed rate of 1.073% per annum and the floating rate tranche at a variable rate of 6-months-Euribor (floored at 0%)
plus 95bps per annum. In the 7-year tranches, the fixed rate tranche was priced at a fixed rate of 1.834% per annum and the
floating rate tranche at a variable rate of 6-months-Euribor (floored at 0%) plus 130bps. In October 2020, the Company reimbursed
€221m of the Schuldschein loan tranches maturing in July 2022. In January 2021, the Company reimbursed an additional €97m
of the Schuldschein loan tranches maturing in July 2022. In July 2022, the Company reimbursed the remaining tranche of €45.5m.
The remaining Schuldschein loan issued in 2018 amounted to €186.5m at the end of December 2024.
In October 2020, the Company issued a new €350m Schuldschein loan (“Certificate of Indebtedness”) offering a blended interest
rate of 1.78% with an average maturity of 7.8 years. This Schuldschein loan is structured in tranches of 5, 7 and 10 years, with
both fixed and floating interest rates, with more than 85% of the transaction on the 7 and 10-year tenors.
Leases
The following table presents a reconciliation between the total of future minimum lease payments and their present value.
2024
2023
In € millions
Future
minimum lease
payments
Interest
Present
value of
minimum
lease
payments
Future
minimum lease
payments
Interest
Present
value of
minimum
lease
payments
Less than one year
177.0
26.8
150.2
168.5
25.7
142.7
Between one and five years
412.5
54.9
357.6
389.7
49.6
340.2
More than five years
112.2
12.5
99.7
106.5
10.6
96.0
Lease liabilities
701.6
94.1
607.5
664.7
85.8
578.9
In 2024, the repayment of lease liabilities amounted to €192m (repayment of lease liabilities excl. interest paid: €161m and interests
on l ease liabilities: €32 m).
Bilateral credit lines
At year-end 2024 and 2023, Eurofins had not used any of its bilateral credit lines.
As of 31 December 2024, Eurofins had access to over €1bn committed mid-term (3 to 5 years) bilateral bank credit lines (same
as in 2023). None of the bilateral credit lines is maturing in 2025.
Short term money market lines
In December 2024, Eurofins set up an uncommitted short term money market line.
At the end of December 2024, €50m were outstanding under this program.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
280
2.19. Interest due on borrowings and earnings due on hybrid capital
In € millions
2024
2023
Interest due on borrowings
35.3
39.8
Earnings due on hybrid capital callable in 2025
1.7
1.7
Earnings due on hybrid capital callable in 2028
17.7
17.7
Earnings due on hybrid capital
19.4
19.4
Total
54.7
59.2
2.20. Hybrid capital
In € millions
31 December
2024
Hybrid
issuance
Hybrid
purchased/
redeemed
31 December
2023
Hybrid capital with a first call date on 13 November 2025
400.0
-
-
400.0
Hybrid capital with a first call date on 24 July 2028
600.0
-
-
600.0
Outstanding as of end of period
1,000.0
-
-
1,000.0
Hybrid capital with a first call date on 24 July 2028
In January 2023, Eurofins raised a €600m hybrid capital. This instrument has a perpetual maturity but is callable at par by Eurofins
in July 2028. This hybrid capital bears a fixed annual coupon of 6.75% until the first call date; then a floating coupon of Euribor3m
+ 424.1bps until January 2033; then a floating coupon of Euribor3m +524.1bps. The instrument is listed on the regulated market
of the Luxembourg stock exchange (ISIN XS2579480307).
Hybrid capital with a first call date on 13 November 2025
In November 2017, Eurofins raised a €400m hybrid capital. The instrument has a perpetual maturity but is callable at par by
Eurofins in November 2025. This hybrid capital bears a fixed annual coupon of 3.25% until the first call date; then a floating coupon
of Euribor3m + 266.7bps until November 2027; then a floating coupon of Euribor3m +366.7bps. The instrument is listed on the
regulated market of the Luxembourg stock exchange (ISIN XS1716945586).
Hybrid capital with a first call date on 29 April 2023
In April 2015, Eurofins raised a €300m hybrid capital. The instrument had a perpetual maturity but was called at par by Eurofins
in April 2023. This hybrid capital bore a fixed annual coupon of 4.875% until the first call date and a floating coupon of Euribor3m
+ 701 bps thereafter. The instrument was listed on the regulated market of the Luxembourg stock exchange (ISIN XS1224953882).
In June 2022, Eurofins purchased €117.3m of this existing hybrid capital and redeemed the balance (€182.7m) in April 2023.
The impact of the hybrid capital earnings distribution on the Consolidated Statement of Changes in Equity and on the Consolidated
Cash Flow Statement is broken down in the table below:
Statement of Changes in Equity
1
Cash Flow Statement
2
In € millions
2024
2023
2024
2023
Earnings on hybrid capital callable in April 2023
-
2.9
-
8.9
Earnings on hybrid capital callable in November 2025
13.0
13.0
13.0
13.0
Earnings on hybrid capital callable in July 2028
40.5
37.8
40.5
20.1
Tax impact on earnings
-3.4
-
-
-
Total earnings on hybrid capital
50.1
53.7
53.5
42.0
1
Used also for the calculation of Earnings per share
2
Earnings paid
2.21. Trade accounts payable and other current liabilities
Trade accounts payable
In € millions
2024
2023
Trade accounts payable
375.8
339.2
Trade accruals payable
270.1
261.0
Total
645.9
600.2
Other current liabilities
In € millions
2024
2023
Tax and social security payables
194.7
184.3
Tax and social security accruals
367.9
338.1
Other payables
58.4
62.4
Total
621.0
584.8
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
281
2.22. Amounts due for business acquisitions
Amounts due for business acquisitions include conditional clauses impacting the price payable to former shareholders of
purchased companies.
The analysis of amounts due for business acquisitions is set out below:
In € millions
Note
2024
2023
Balance as of 1 January
142.3
184.0
Business combinations
2.26
15.7
15.4
Divestment
2.26
-6.8
-0.3
Amounts due for business acquisitions paid
2.26
-29.7
-32.0
Reversal of amounts due for business acquisitions not paid
2.6
-16.3
-22.9
Unwind of discount on amounts due for business acquisitions
2.7
1.8
3.9
Translation differences and other
1.5
-5.7
Balance as of 31 December
108.5
142.3
Current
45.7
35.5
Non-current
62.8
106.8
Total
108.5
142.3
Amounts due on transactions with former shareholders
73.5
81.7
Put and call options transactions
35.0
60.6
Total
108.5
142.3
Within the amounts due for business acquisitions, the Group has contingent arrangements in relation with 64 past acquisitions
(including put and call options).
The assumptions used are based on the business plans provided at acquisition time and reviewed during the first 12 months
following the acquisition in case of significant changes, then reviewed every year based on actual performance for multi-year
arrangements to re-assess deferred considerations to be paid. This is a level 3 fair value measurement.
The businesses acquired are already fully consolidated and the liabilities related to the deferred consideration (including put and
call options) are already included in the line “Amounts due for business acquisitions”.
The potential undiscounted amounts of all future payments that the Group could be required to make under these arrangements
are estimated between €78m and €121m, depending on changes in financial performance of acquired companies.
Significant amounts due on transactions with former shareholders
In July 2017, Eurofins acquired 100% of Eurofins Genoma Group Srl in Italy. The Earn-out Consideration is based on the average
EBITDA of the company over the period January 2017 to December 2019 (see Note 2.36).
The other contingent consideration arrangements are individually estimated at less than €25m.
The new main contingent consideration with previous shareholders in 2024 concerns Micro-B Srl (IT).
Put and call options transactions with non-controlling interests at a variable price
The aggregate value of these put and call agreements is estimated at €35m as of 31 December 2024.
The following put and call agreements were exercised in 2024 to acquire:
▪ 39.8% of the shares in Eurofins Product Testing clinical and ex-vivo France Holding SAS (FR);
▪ 15.0% of the shares in Eurofins Saudi Ajal Laboratories Ltd. (SA).
Put and call agreements signed in 2023 or before, remaining at the end of December 2024, are as follows:
▪ 43.5% of the shares in Eurofins Havlandet AS (NO);
▪ 25.0% of the shares in Eurofins Beacon Discovery, Inc. (US);
▪ 10.0% of the shares in Eurofins Maser BV (NL);
▪ 41.4% of the shares in Repertoire Genesis Co., Ltd. (JP);
▪ 33.0% of the shares in Genetic Testing Service JSC Co., Ltd. (VN);
▪ 49.9% of the shares in Eurofins Limed Ltd. (IL);
▪ 30.0% of the shares in Eurofins Saudi Ajal Laboratories Ltd. (SA);
▪ 45.0% of the shares in Ajal Medical Specialty Company Ltd.(SA);
▪ 38.7% of the shares in Medserv Kft (HU);
▪ 25.0% of the shares in Thai Environmental Technic Co., Ltd. (TH);
▪ 12.5% of the shares in Eurofins MGS Laboratories Limited (UK);
▪ 40.0% of the shares in Eurofins CRA Co., Ltd. (KR);
▪ 20.0% of the shares in Environmental Technology And Management (VN);
▪ 5.0% of the shares in PT Eurofins Angler Biochem Lab Ltd. (ID);
▪ 49.0% of the shares in Eurofins Manara Medical Laboratories W.L.L. (BD);
▪ 10.0% of the shares in AQL EMC Limited (UK).
With regard to Repertoire Genesis Co., Ltd. (JP), the put and call option has been reversed for €6.8m (nil value).
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
282
In 2024, no new put and call agreements have been signed.
2.23. Post-employment benefits
The Group operates retirement benefit obligations plans mainly in France, Germany, Sweden, Norway, the Netherlands, Italy,
Japan, India and Taiwan.
Those plans can either be defined benefit plans (DB) or jubilee payments and have been established in accordance with the legal
requirements, customs and the local practice in the countries concerned.
Risks related to DB plans
DB plans expose the company to various demographic and economic risks such as longevity risk, investment risk, currency and
interest rate risk and in some cases inflation risk. The latter plays a role in the assumed wage increase but more importantly in
some countries where indexation of pensions is mandatory.
France
The Group runs a jubilee scheme where a lump sum payment is provided to all employees upon retirement. The amount is
dependent on different factors such as years of service with the company, compensation at retirement age (between age of 63
and 65) and collective agreements. This is a legal requirement.
Some companies in France also have some work anniversary awards agreements (“médaille du travail”). The lump sum amount
is defined by the collective agreement and based on the number of years of service with the company.
Sweden
The Group runs a final salary scheme DB plan for some of its employees in Sweden (ITP2).
The ITP2 plan can be funded in two different ways, either by paying premiums to Alecta Pensionsförsäkring (a mutual life insurance
company) or by using a book reserve system in combination with credit insurance through PRI Pensionsgaranti. Eurofins is using
the latter.
Other
In Japan, India and Taiwan, the defined benefit plan mainly corresponds to a lump sum payment made upon retirement or upon
ending an employment contract with the company. In the Netherlands, the benefit obligation relates to work anniversary award
plans ‘Jubilee’. In Italy it relates to the TFR (‘Trattamento di Fine Rapporto’). It is an end-of-employment provision accrued for
each single employee and paid out upon termination of the employment contract.
In Norway, the Group runs a DB plan (“Multi-Employer Scheme”) for employees who have previously been employed in the public
sector.
In Germany, the Group runs a DB plan for the employees of Central Laboratories Friedrichsdorf as well as to former managers of
companies acquired by Eurofins who are no longer part of the Group in 2024. Company pension commitments in Germany are
partly protected against employer bankruptcy via the “Pensions-Sicherungs-Verein” which charges a fee to all German companies
providing pension schemes.
The Group has followed the recommendations of IFRIC update 05/21. The cumulative impacts on pension liability in prior periods
as well as the current period are not deemed significant.
Summary of pre-tax costs for post-employment benefits and reconciliation
The amounts recognised in the Consolidated Income Statement for the defined benefit plans are determined as follows:
In € millions
2024
2023
Defined benefit plans
- Included in operating costs, net from operations
5.6
4.0
- Included in finance costs
2.6
2.1
- Included in Discontinued operations
-
-
Defined contribution plans
- Included in operating costs, net from operations
62.1
60.1
- Included in income from Discountinued operations
-
-
Post-employment benefits costs
70.3
66.2
2024 movements in employee benefit obligations between present value of obligations and fair value of plan assets are broken
down as follows:
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
283
2024
2023
In € millions
Present
value of
obligations
Fair value of
plan assets
Pension
liability in the
Balance
Sheet
Present
value of
obligations
Fair value of
plan assets
Pension
liability in the
Balance
Sheet
As of 1 January
76.3
-10.0
66.2
69.8
-10.3
59.5
Current service cost
6.1
-
6.1
3.9
-
3.9
Past service costs
-
-
-
-
-
-
Effects of curtailments
-0.5
-
-0.5
0.1
-
0.1
Operating costs, net
5.6
-
5.6
4.0
-
4.0
Interest expense/(income)
2.9
-0.3
2.6
2.4
-0.3
2.1
Amounts recognised in
the Consolidated Income
Statement
8.5
-0.3
8.2
6.3
-0.3
6.1
Remeasurements:
Return on plan assets,
excluding amounts included
in interest
expense/(income)
-
-0.6
-0.6
-
-0.1
-0.1
(Gain)/loss from change in
demographic assumptions
-0.7
-
-0.7
-
-
-
(Gain)/loss from change in
financial assumptions
-0.5
-
-0.5
4.3
-
4.3
Experience (gains)/losses
-3.7
-
-3.7
0.4
-
0.4
Amounts recognised in
Other Comprehensive
Income
-4.9
-0.6
-5.5
4.7
-0.1
4.5
Translation differences and
other
-0.3
0.2
-0.1
-1.0
0.4
-0.7
Business Combinations
1.6
-
1.6
0.6
-
0.6
Contributions:
- Employers
-
-
-
-
-0.1
-0.1
- Plan participants
-
-
-
-
-
-
Benefit payments:
-
-
-
- From plans
-0.7
0.5
-0.2
-0.3
0.4
0.1
- From employers
-3.8
-
-3.8
-3.8
-
-3.8
As of 31 December
76.6
-10.2
66.4
76.3
-10.0
66.2
The amounts recognised in the Consolidated Balance Sheet are broken down as follows on a country basis:
2024
2023
Country
Present value of
funded
obligations
Fair value
of plan
assets
Pension liability
in the Balance
Sheet
Present value
of funded
obligations
Fair value of
plan assets
Pension liability
in the Balance
Sheet
France
26.5
-
26.5
30.7
-
30.7
Sweden
15.4
-
15.4
15.0
-
15.0
Other
34.7
-10.2
24.6
30.6
-10.0
20.5
Total
76.6
-10.2
66.4
76.3
-10.0
66.2
Plan assets
Plan assets represent an amount of €10.2m mainly in cash and investment funds as of 31 December 2024 (€10.0m as of 31
December 2023).
Assumptions
The main actuarial assumptions used for defined benefit obligations (DBO) are detailed as follows:
In %
Discount rate
Salary increase rate
Pension increase
rate
Inflation rate
France
3.4%
3.0%
N/A
3.0%
Sweden
3.2%
2.8%
2.8%
1.8%
Assumptions regarding future mortality rates are set based on widely known actuarial data and mortality tables.
Sensitivity analysis
The following table illustrates the approximate impact on the DBO from movements in key assumptions. The DBO was
recalculated using a change in the assumptions of 0.5% which overall is considered a reasonably possible change.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
284
In € millions
Discount rate
Salary growth rate
(incl. inflation)
Pension growth rate
(incl. inflation)
Change in assumption
+/- 0.5%
+/- 0.5%
+/- 0.5%
Net liability amount
66.4
66.4
66.4
Increase of rate in assumption
-3.6
2.5
1.5
Decrease of rate in assumption
4.0
-2.2
-1.3
The expected employer contributions to the defined benefit plans for 2024 amount to €4.0m.
The average duration of the DBO of the DB plans is 16 years (France: 17, Sweden: 23 and Other: 12) as of 31 December 2024
(2023: 17 years).
2.24. Provisions
Reorganisation charges comprise lease termination penalties and employee termination payments. Provisions for other charges
are mainly related to litigations and asset retirement obligations.
In € millions
Reorganisation
charges
Other charges
Total
2024
Balance as of 1 January
6.9
35.5
42.3
Business combinations
-
7.1
7.1
Additional provisions
9.6
16.1
25.7
Used during year
-9.2
-8.3
-17.5
Unused amounts reversed
-0.1
-2.4
-2.4
Translation differences and other
1.7
-0.9
0.8
Balance as of 31 December
8.9
47.0
55.9
Current
7.3
25.5
32.8
Non-current
1.7
21.5
23.2
2023
Balance as of 1 January
8.6
45.2
53.7
Business combinations
-
0.1
0.1
Additional provisions
6.9
8.7
15.7
Used during year
-6.9
-17.4
-24.3
Unused amounts reversed
-0.9
-2.6
-3.5
Translation differences and other
-0.8
1.5
0.6
Balance as of 31 December
6.9
35.5
42.3
Current
4.8
16.6
21.4
Non-current
2.1
18.8
20.9
In 2024, the additional provisions mainly relate to litigation in the U.S., reorganisation in France and Germany and claims reserves
(outstanding and incurred-but-not-reported losses) within the Group reinsurance captive.
The provisions linked to business combinations relate to ongoing litigations prior to acquisition by Eurofins.
The reversal of provisions is mainly related to the end of restructuring processes in The Netherlands and Germany and the end
of litigation process in the U.S.
The additional provisions and unused amounts reversed are included in the separately disclosed items (Note 2.5).
The periods in which the provision for other liabilities and charges could be paid are broken down as follows:
In € millions
2024
2023
Up to one year
32.8
21.4
1 to 5 years
21.9
19.1
Over 5 years
1.2
1.8
Total
55.9
42.3
2.25. Net working capital
The net working capital as disclosed in the cash flow statement is detailed as follows:
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
285
In € millions
Opening
balance
Business
combinations
Change in net
working capital
(Cash Flow
statement)
Translation
differences
and other
Net
Capex
Closing
balance
2024
Trade receivables
1,072.8
27.4
-27.8
21.9
-
1,094.3
Contract assets
307.7
3.4
-9.4
4.5
-
306.2
Inventories
139.0
4.8
-3.6
1.6
-
141.9
Prepaid expenses and
other current assets
202.9
11.6
-22.8
0.6
-
192.2
Trade accounts payables
-600.1
-15.5
25.9
-10.1
-46.0
-645.9
Contract liabilities
-192.8
-3.0
3.0
-3.1
-
-195.9
Other current liabilities
-584.8
-23.9
-9.2
-3.1
-
-621.0
Total NWC
344.6
4.8
-43.9
12.3
-46.0
271.7
In € millions
Opening
balance
Business
combinations
Change in net
working capital
(Cash Flow
statement)
Translation
differences
and other
Net
Capex
Closing
balance
2023
Trade receivables
1,053.3
15.6
20.0
-16.0
-
1,072.8
Contract assets
288.4
0.4
23.4
-4.5
-
307.7
Inventories
145.6
3.9
-11.0
0.5
-
139.0
Prepaid expenses and
other current assets
198.2
2.3
12.3
-9.8
-
202.9
Trade accounts payables
-647.7
-13.8
41.3
10.5
9.5
-600.1
Contract liabilities
-184.2
-0.5
-10.2
2.1
-
-192.8
Other current liabilities
-571.6
-9.6
-11.1
7.5
-
-584.8
Total NWC
281.9
-1.7
64.8
-9.8
9.5
344.6
The transfer of tax credit receivables is related to the transfer of corporate income tax receivables in France once the tax
statements are filed in the following year (Tax Credit for Research).
Other current liabilities mainly correspond to tax and social security payables and related accruals and other payables.
2.26. Business combinations and outsourcing
Acquisitions
During 2024, the Group completed 31 business combinations, including 18 acquisitions of entities and 13 acquisitions of assets.
These companies/activities have been fully consolidated from the date the Group took control of these entities/assets. The
percentage of ownership of the following acquisitions is provided in Note 3.2.
As the Group carries out multiple acquisitions every year, in accordance with paragraph B67 of IFRS 3, the Group is only disclosing
individual acquisitions above an acquisition price threshold of €35 million.
In February 2024, Eurofins acquired Lab4More group (“Lab4More”) in Germany, specialised in Clinical Diagnostics and which
employs ca. 130 staff.
In March 2024, Eurofins acquired Ascend Clinical, LLC (“Ascend”), the largest independent laboratory for kidney dialysis testing
in the United States. The Company is located in Sunnyvale, California, and employs ca. 170 staff.
In September 2024, Eurofins acquired Infinity Laboratory Group, Inc. (“Infinity”). Founded in 1991, Infinity operates eight state-of-
the-art laboratories across the United States and employs approximately 100 staff. Infinity’s significant microbiology testing
footprint with best-in-class systems provides local services in key regions of the country, expanding the Eurofins microbiology
footprint.
The businesses acquired contributed to Eurofins’ consolidated revenues for €132.3m and to consolidated Net Profit for €-0.2m in
2024. The contribution to Adjusted EBITDA for the same period amounted to €23.6m. If the effective date of these acquisitions
would have been 1 January 2024, Group consolidated revenues would have been increased by an additional ca. €93.0m and
consolidated Net Profit by an additional ca. €1.7m. The Adjusted EBITDA
1
would also have been increased by an additional
€10.5m. These acquisitions had 1,465 FTEs in 2024.
Part consolidated in 2024
In € millions
Total acquisitions
Of which
Ascend
Infinity
Lab4More
Revenues
132.3
49.8
5.0
19.4
Adjusted EBITDA
1
23.6
11.0
1.6
3.4
Net Profit
-0.2
-2.0
-
1.2
FTE
774
116
27
102
1
Adjusted EBITDA = EBITDA excluding one-off costs
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
286
Part non-consolidated in 2024
In € millions
Total acquisitions
Of which
Ascend
Infinity
Lab4More
Revenues
93.0
18.2
12.1
2.0
Adjusted EBITDA
1
10.5
3.0
3.2
-0.1
Net Profit
1.7
0.6
-0.1
-0.1
FTE
691
38
61
13
The aggregate fair value of assets and liabilities and the non-controlling interests acquired is laid out below. For some acquisitions,
due to timing constraints, the allocation of the aggregate purchase consideration is still provisional as of 31 December 2024.
2024
Of
which
2023
In € millions
Fair value
Ascend
Infinity
Lab4More
Fair
value
Purchase price, cash consideration
338.5
153.2
41.7
41.5
139.5
Purchase price, contingent consideration
15.7
-
2.9
-
15.4
Net purchase consideration
354.1
153.2
44.6
41.5
154.9
Property, plant and equipment
104.7
67.1
6.3
3.5
29.4
Intangible assets
76.9
35.8
11.9
6.4
15.1
Other non-current assets
12.4
0.3
9.7
-
5.7
Trade accounts receivable
31.5
12.8
2.5
4.3
17.1
Other current assets
18.6
10.6
0.4
1.9
7.4
Cash and cash equivalents
29.4
12.7
1.6
2.2
13.5
Borrowings
-42.0
-24.8
-4.8
-2.6
-19.8
Other current liabilities
-54.2
-23.0
-2.8
-3.7
-25.2
Other non-current liabilities
-6.3
-0.2
-
-2.1
-2.7
Identifiable net assets acquired
171.0
91.2
24.8
9.9
40.6
Goodwill
183.1
62.0
19.8
31.6
114.3
Net purchase consideration
354.1
153.2
44.6
41.5
154.9
Reconciliation to Cash Flow Statement:
Cash and cash equivalents
-29.4
-12.7
-1.6
-2.2
-13.5
Purchase price, contingent consideration of the period - unpaid
-15.7
-
-2.9
-
-15.4
Purchase price, contingent consideration - paid
29.6
-
-
-
31.7
Break-up fee related to a transaction
6.8
-
-
-
-
Badwill / Bargain purchase
-2.3
-
-
-
-
Non-controlling interests
0.3
-
-
-
0.4
Net cash outflow on acquisitions
343.4
140.5
40.1
39.3
158.1
The net cash outflow on acquisitions concerns both acquisitions completed in 2024 and in previous years (in case of payment of
deferred considerations). During 2024 the Group paid amounts due to former shareholders of previously acquired companies for
€29.6m.
In 2024, the Group acquired some buildings as part of its new acquisitions for an amount of €10.1m (€3m in 2023), included in
property, plant and equipment, and located in various locations across the United States: Concord City, New Hamphire, Georgia
for Eastern Analytical and Atlanta City, Georgia for Analytical Environment. The Group acquired also right-of-use assets of
operating leases for an amount of €39.5m in 2024.
The goodwill is attributable to the workforce of the acquired business and the synergies expected to arise after acquisition.
The portion of goodwill and other intangible assets related to acquisitions completed in 2024 that is tax deductible represents an
amount of €154.2m (especially on Ascend and Infinity).
For all companies acquired in 2024, the fair value of net assets acquired was as follows:
In € millions
2024
Book value prior to
acquisition
Fair value adjustment
Fair value on
acquisition
Property plant and equipment
65.9
38.8
104.7
Intangible assets
1.9
75.0
76.9
Other non-current assets
6.6
5.8
12.4
Trade accounts receivable
31.4
0.1
31.5
Other current assets
19.8
-1.2
18.6
Cash and cash equivalents
29.4
-
29.4
Borrowings
-2.7
-39.2
-42.0
Other current liabilities
-55.2
1.0
-54.2
Other non-current liabilities
-1.8
-4.4
-6.3
Identifiable net assets acquired
95.1
75.9
171.0
The intangible assets include amounts recognised for the fair value of acquired brands, technology and customer-based assets.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
287
Divestment
During 2024, the Group discontinued some small businesses mainly in clinical diagnostics in Belgium, Japan and Brazil that
contributed consolidated revenues of €7m in 2024 and €32m in 2023 (list in Note 3.4). The divestment or discontinuation of these
businesses resulted in a loss on disposal of €23.6m and net proceeds of €-0.9m.
In 2023, the Group divested a small Biopharma Services entity in France (annual sales of €3.9m in 2022) for a price of €8.5m with
no consolidated net gain or loss and a small Food entity in Spain. A loss was recorded on a small IVD French entity that will be
discontinued. The revenues consolidated in 2023 amounted to €3.0m.
In € millions
2024
2023
Selling price, cash consideration
-
9.8
Selling price, contingent consideration
-
0.3
Net sale consideration
-
10.2
Property, plant and equipment
1.9
0.2
Intangible assets
3.6
1.0
Goodwill
29.2
9.0
Other non-current assets
0.1
-0.5
Trade accounts receivable
0.8
1.1
Other current assets
0.2
0.3
Cash and cash equivalents
0.9
0.8
Borrowings
-1.0
-
Previous contingent consideration unpaid
-6.8
-
Other current liabilities
-2.0
-1.1
Other non-current liabilities
-3.3
-0.4
Identifiable net assets divested
23.6
10.4
Loss/ gain on disposal of subsidiaries
-23.6
-1.8
Net cash divested
-0.9
-0.8
Sale price, contingent consideration of the period -
unpaid
-
-0.3
Sale price, contingent consideration - paid
-
-0.3
Proceeds on disposals of subsidiaries, net
-0.9
+7.3
2.27. Shareholders’ equity and potentially dilutive instruments
Share capital and other reserves
As of 3 1 December 2024, the Company’s share capital is composed of 192,981,183 shares of €0.01 each (same as of 31 December
2023). The allotted, called-up and fully paid capital amounts to €1.9m.
During 2024, share capital and other reserves did not change.
Other reserves correspond to the legal reserve and share premium of the Company.
Retained earnings correspond to the accumulated reserves not distributed.
Currency translation reserve
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income, and
accumulated in a separate reserve within equity (see interest rate risk in Note 2.30).
Dividends paid
In April 2024, the General Assembly approved the dividends to shareholders of €0.50 per ordinary share for a total gross
amount of €95.6m after deduction of own shares (€1 per ordinary share for a total amount of €191.9m in the previous year).
Dividends proposal
The Board of Directors intends to propose, at the upcoming Annual General Meeting (AGM) to be held on 24 April 2025,
dividends to shareholders of €0.60 per ordinary share for a total gross amount of €115.8m.
Stock option plans
Stock options are granted to certain directors, managers and employees of the Company and its subsidiaries. Movements in the
number of stock options outstanding are as follows:
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
288
2024
2023
Stock options
Number of
stock options
outstanding
Weighted
average
exercise price
(€)
Number of
stock options
outstanding
Weighted
average
exercise price
(€)
1 January
6,883,296
53
7,208,393
52
Granted
1,530,729
48
764,576
60
Exercised
-518,070
33
-519,355
31
Expired or lost
-422,418
69
-570,318
65
Outstanding as of 31 December
7,473,537
53
6,883,296
53
Exercisable as of 31 December
3,559,627
35
2,586,307
39
The weighted average share price based on Eurofins share price at the date of exercise was €55 for the 518,070 options exercised
in 2024 and was €60 for the 519,355 options exercised in 2023. The 518,070 options exercised in 2024 were served from the
Company’s own treasury shares (share repurchase plan).
As at 31 December 2024, 7,473,537 stock options awarded are still outstanding. Further details can be found in the “Eurofins Group
Remuneration Report 2024”.
The exercise price of the granted stock options is generally at least equal to the 20-day volume weighted average market price of
Eurofins shares traded on Euronext Paris stock exchange prior to the plan award date plus a hurdle of 2%. Options/ Restricted
stock units are conditional on the employee completing the vesting period (4 to 5 years). Subject to continued employment and
other conditions such as performance conditions for some beneficiaries (‘Senior Executives’), vested options can be exercised
and have a contractual option term of ten years.
The fair value of options granted during the period is determined using the Black-Scholes or Bermudan valuation model from 2019
onwards including a behaviour factor for the expected exercise period. An annual risk-free interest rate of 2.69% is used for the
2024 plans. The volatility measured is based on the statistical analysis of daily share prices over the last three years. Volatility
used for 2024 plans was 30.8%.
Plan
Number of
stock options
initially granted
Vesting period
(Years)
Average exercise price
(€)
Weighted average fair
value of options
(€)
10/10/2011
1,583,500
4/5
5.78
2.4/2.6
02/03/2012
462,500
4/5
6.56
2.5/2.7
19/12/2012
1,914,750
4/5
12.01
4.1/4.5
01/10/2013
1,390,650
4/5
18.23
6.1/6.7
23/10/2014
1,209,500
4/5
18.83
6.1/6.7
07/04/2015
600,000
4/5
25.19
8.0/8.8
22/10/2015
352,500
4/5
28.28
8.9/9.9
21/01/2016
939,200
4/5
28.63
9.1/10.1
01/08/2016
1,227,400
4/5
33.69
10.9/12.0
04/04/2017
413,900
4/5
40.49
10.5/11.6
13/12/2017
1,696,950
4/5
50.87
13.2/14.6
08/01/2019
2,175,880
4/5
32.50
10.3/10.6
18/07/2019
20,000
4/5
38.58
9.0/9.3
24/10/2019
1,629,250
4/5
44.68
11.2/11.6
16/12/2020
1,493,150
4/5
67.50
23.8/24.7
20/10/2021
605,700
4/5
112.59
32.8/34.8
17/10/2022
1,264,902
4/5
62.78
19.8/21.8
05/07/2023
764,576
4/5
60.03
13.1/15.1
16/07/2024
1,530,729
4/5
47.88
11.5/13.1
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
289
Restricted stock units
Restricted stock units are granted to certain directors, managers and employees.
Plan
Vesting period
(Years)
Number of restricted
stock units initially
granted
Fair value of
restricted
stock units
(€)
29/07/2016
4/5
59,850
33.55
01/08/2016
4/5
44,960
33.69
04/04/2017
4/5
9,400
40.49
13/12/2017
4/5
134,000
50.87
08/01/2019
4/5
149,280
35.12
24/10/2019
4/5
88,880
43.56
26/06/2020
4/5
20,200
55.20
16/12/2020
4/5
83,800
68.42
24/02/2021
4/5
91,000
74.99
20/10/2021
4/5
28,350
111.98
20/10/2021
2/3/4/5
22,500
111.98
17/10/2022
4/5
95,424
64.12
05/07/2023
4/5
60,117
58.24
16/07/2024
4/5
106,962
47.57
Movements in the number of restricted stock units outstanding are as follows:
Restricted stock units
2024
2023
1 January
386,698
442,713
Granted
106,962
60,117
Vested
-113,345
-81,345
Expired or lost
-52,546
-34,787
Outstanding as of 31 December
327,769
386,698
On the 113,345 restricted stock units vested in 2024, the total amount was served from the Company’s own treasury shares (share
repurchase plan).
Further details can be found in the “Eurofins Group Remuneration Report 2024”.
2018 BSA Leaders warrants
In June 2018, Eurofins issued 124,460 capital-providing securities in the form of stock purchase warrants. Following the ten-for-
one stock split completed in November 2020, the 2018 BSA Leaders warrants give their holders the right to subscribe for ten
shares of the Company for each 2018 BSA Leaders Warrant at a fixed exercise price of €529.65 between 1 June 2022 and 31
May 2026. The subscription price was set at €34.36 per warrant. Movements in the number of 2018 BSA Leaders Warrants
outstanding were as follows:
2018 BSA Leaders Warrants
2024
2023
1 January
101,563
102,077
Exercised
-
-514
Expired or lost
-
-
Outstanding as of 31 December
101,563
101,563
Exercisable as of 31 December
101,563
101,563
Beneficiary units
Beneficiary units are allocated under certain conditions to holders of fully paid-up shares as provided in the Company’s articles of
association, at a price of €0.01 per unit. Upon subscription, beneficiary units from each category of Class A, Class B and Class C
confer their holders with one voting right per unit but no rights to dividends.
Class A beneficiary units
Class A beneficiary units, which confer no right to dividends but a right to one vote each, can be allocated to holders of fully paid-
up shares for which (i) proof is provided of registration in the name of the same shareholder for at least three consecutive years
as provided for in article 12bis.2 of the Company’s Articles of Association (ii) request to subscribe class A beneficiary units was
sent in writing by the relevant shareholder to the Company at the latest by 30 June 2020 and (iii) subject to the Company receiving
payment of a subscription price of €0.01 per class A beneficiary unit. Therefore, the subscription period of class A beneficiary
units has now expired.
Class B beneficiary units
Class B beneficiary units, which confer no right to dividends but a right to one vote each, are allocated to holders of fully paid-up
shares for which (i) proof is provided of registration in the name of the same shareholder for at least five consecutive years as
provided for in article 12bis.3 of the Company’s Articles of Association (ii) request to subscribe class B beneficiary units was sent
in writing by the relevant shareholder to the Company at the latest by 30 June 2021 and (iii) subject to the Company receiving
payment of a subscription price of €0.01 per class B beneficiary unit. Therefore, the subscription period of class B beneficiary
units has now expired.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
290
Class C beneficiary units
Class C beneficiary units, which confer no right to dividends but a right to one vote each, are allocated to holders of fully paid-up
shares for which (i) proof is provided of registration in the name of the same shareholder for at least two consecutive years as
provided for in article 12bis.4 of the Company’s Articles of Association (ii) request to subscribe class C beneficiary units is sent in
writing by the relevant shareholder to the Company at the latest by 30 June 2023 and (iii) subject to the Company receiving
payment of a subscription price of €0.01 per class C beneficiary unit. Therefore, the subscription period of class C beneficiary
units has now expired.
Movements in the number of beneficiary units issued were as follows:
1
Beneficiary units attached to shares which are no longer held in nominative form are automatically cancelled.
Voting rights
Voting rights attached to shares are proportional to the capital quota they represent ie. each share gives the right to one vote. In
addition, class A, class B and class C beneficiary units (“parts bénéficiaires de catégorie A, B et C”) carrying an extra voting right
each, can be allocated to fully paid-up shares fulfilling conditions as specified in previous paragraphs about class A, class B and
class C beneficiary units.
No voting rights are attached to treasury shares.
As at 31 December 2024, a total amount of 189,648,032 class A, class B and class C beneficiary units has been issued and the
total number of voting rights amounts to 376,429,844.
Partial and optional acquisition price payments in Eurofins shares
As at 31 December 2024 and 2023, the overall number of Eurofins shares potentially deliverable was nil.
Treasury shares
2024
2023
Number of
Treasury
shares
Amount
(in € millions)
Number of
Treasury
shares
Amount
(in € millions)
Liquidity contract plan
151,143
7.2
126,215
7.1
Share repurchase plans
6,048,228
300.6
829,643
47.8
Total (Balance Sheet - Equity)
6,199,371
307.8
955,858
54.9
Liquidity contract
On 1 November 2021, the Company entered into an agreement with Kepler Cheuvreux in order to enhance the liquidity of its
shares. This agreement was renewed for one-year periods thereafter. An amount of cash of €15m has been allocated to a cash
account by the Company to fund this liquidity contract. As of 31 December 2024, the Company held 151,143 of its own shares
under this liquidity contract (0.08% of the total number of shares at that date) representing an amount of €7.2m (126,215 shares
for an amount of €7.1m as of 31 December 2023).
Share Repurchase Plans
As per the authorisation granted by the Company’s Annual General Meeting of shareholders held on 25 April 2019 (the “April
2019 AGM”), the Board of Directors decided on 20 October 2023 to initiate a second Share Repurchase programme which allows
for the acquisition of a maximum amount representing up to 2% of the Company’s share capital for a maximum period of twenty-
four months expiring on 24 October 2025, subject to the renewal of the authorisation of such share repurchase plan by the Annual
General shareholders’ Meeting (AGM) of the Company to be held in April 2024; this authorisation was renewed by the Company’s
Annual ordinary General meeting of shareholders held on 25 April 2024 (the “April 2024 AGM”).
A first share purchase programme took place between 3 October 2022 and 8 August 2023 and 1,121,493 shares were
repurchased (1,000,000 shares in 2023 and 121,493 shares already in 2022), representing 0.58% of the current share capital.
The second programme took place between 25 October 2023 and 30 August 2024 and 2,700,000 shares were repurchased
(2,590,000 shares in 2024 and 110,000 shares already in 2023), representing 1.40% of the current share capital.
2024
Beneficiary units
Class A
Class B
Class C
Total
1 January 2024
63,753,336
63,000,000
63,000,000
189,753,336
Beneficiary units subscribed
-
-
-
-
Beneficiary units cancelled
1
-105,304
-
-
-105,304
31 December 2024
63,648,032
63,000,000
63,000,000
189,648,032
2023
Beneficiary units
Class A
Class B
Class C
Total
1 January 2023
63,800,498
63,000,000
63,000,000
189,800,498
Beneficiary units subscribed
-
-
-
-
Beneficiary units cancelled
1
-47,162
-
-
-47,162
31 December 2023
63,753,336
63,000,000
63,000,000
189,753,336
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
291
On 2 September 2024, Eurofins launched a third Share Repurchase Programme for a maximum amount representing up to 2%
of its share capital. The third programme took place between 02 September 2024 and 20 December 2024 and 3,010,000 shares
were repurchased, representing 1.56% of the current share capital.
On 20 December 2024, Eurofins launched a fourth Share Repurchase Programme for a maximum amount representing up to 2%
of its share capital. The new programme commenced on 23 December 2024 and will last until 22 December 2026 at the latest.
250,000 shares were repurchased in December 2024 under this fourth Share Repurchase Programme.
The Company may at any time interrupt this programme in view of market conditions and/or evolution of its investment strategy.
The purchased shares under these programmes will be primarily used to hedge the Company’s Long-Term Incentive plans but
may also be cancelled, used to partially finance acquisitions or for other purposes approved by the Board of Directors and within
the authorisation of the AGM.
Under these Share Repurchase Plans, as of 31 December 2024, the Company held 6,048,228 of its own shares (3.13% of the
total share capital) representing an amount of 300.6m (829,643 shares for an amount of €47.8m as of 31 December 2023).
Change of the period
2024
2023
in € millions
Number
Amount
(Balance
Sheet)
Amount
(Cash flow)
Number
Amount
(Balance
Sheet)
Amount
(Cash flow)
Opening
955,858
54.9
219,560
14.2
Acquisitions of shares, net (liquidity contract)
24,928
0.1
-1.1
-9,462
-1.9
0.5
Acquisition of shares (share repurchase plans)
5,850,000
290.3
-290.3
1,110,000
64.8
-64.8
Exercise of stock options
-518,070
-30.8
17.0
-318,460
-19.4
8.5
RSU vested
-113,345
-6.7
-45,780
-2.8
Closing
6,199,371
307.8
955,858
54.9
Shares repurchased not settled yet (Note 2.18)
2.5
-
Purchase of treasury shares, net of gains
-271.9
-55.8
2.28. Non-controlling interests
Non-controlling interests relate to minority stakes held by third parties in consolidated Group companies:
▪ Eurofins Cerep SA for the remaining non-controlling interests of circa 4.2%. This is a level 1 fair value measurement.
▪ Eurofins QKEN KK (JP) for the remaining non-controlling interests of 15%. This is a level 3 fair value measurement.
▪ The companies with remaining NCI and put and call options are listed on Note 2.22.
During 2024, the Group exercised put and call options and acquired the non-controlling interests in 39.8% of Eurofins Product Testing
clinical and ex-vivo France Holding SAS (FR) and in 15% of Eurofins Saudi Ajal Laboratories Ltd. (SA). The change in the value of
the put and call options amounts to €-9.4m for the period 2024. This is a level 3 fair value measurement. Other companies with non-
controlling interests but without put and call options are listed in Note 3. Scope of the Group.
The Group acquired also 34% in a German environmental laboratory with a negative impact on non-controlling interests of €-2.5m.
Below is the impact of the companies with non-controlling interests integrated in the Consolidated Financial Statements:
In € millions
2024
2023
Revenues
173.7
156.7
Net Profit
17.2
11.0
The non-controlling interests of the companies listed above consequently bear the risks and rewards attached to their shareholding,
which are recognised as non-controlling interests. Most minority shareholders are managing directors of the companies and they
have a right to the dividend of the company in which they hold a non-controlling interest.
The Group has elected the full goodwill method on the consolidation of these assets; the non-controlling interests have been in
consequence recognised at their fair value against goodwill at acquisition time.
In accordance with IAS 32.23, the Group has recognised its obligation to purchase the shares under the put option as a financial
liability under the caption “amounts due for business acquisitions” (Note 2.22). The same paragraph states that the financial liability
is reclassified from equity.
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
292
2.29. Free Cash Flow to the Firm and Equity
In € millions
Note
2024
2023
Free Cash Flow to the Firm (Cash Flow Statement)
800.6
474.2
Disposals/(acquisition) of investments, financial assets and derivative
financial instruments, net
-3.3
1.9
Repayment of lease liabilities
2.18
-192.4
-180.5
Interest received (Cash Flow Statement)
19.4
11.6
Interests and premium paid (Cash Flow Statement)
2.7
-114.2
-82.2
Free Cash Flow to Equity
510.1
224.9
Free Cash Flow to Equity increased significantly in 2024 compared to 2023 thanks to higher Free Cash Flow to the Firm resulting
from higher profitability and a decrease in net working capital intensity.
2.30. Financial risk management
The Group is exposed to several types of financial risks which are further analysed herein. The Group does not purchase or hold
any derivative financial instruments for speculative purposes.
Liquidity risk
Liquidity risk is the risk that an entity might encounter difficulty in meeting its obligations associated with its financial liabilities.
Liquidity risk for the Group is monitored through / by the Group Treasury Team, which tracks the development of the actual cash
flow position for the Group and uses inputs from a number of sources in order to forecast the overall liquidity position on both a
short- and longer-term basis. Eurofins invests surplus cash in short-term deposits with appropriate maturities to ensure sufficient
liquidity is available to meet liabilities when due.
The rating of the Company’s debt may improve or deteriorate. As a result, the Group’s future borrowing capacity may be
influenced, and its financing costs may fluctuate. The Group has various sources of funding to mitigate its liquidity risk. As at 31
December 2024, the Group had €613.9m in cash and cash equivalents (2023: €1,221.2m). Cash and cash equivalents include all
cash balances and short-term highly liquid investments (short-term deposits) with an original maturity of three months or less that
are readily convertible into known amounts of cash. The Group pools cash from subsidiaries to the extent legally and economically
feasible.
In addition to its capacity to generate cash-flows from its operations, Eurofins relies on the NEU CP market for its short-term needs
as well its bank credit facilities at competitive interest rates.
Those bank credit facilities can also be used to fund any type of general corporate purpose. None of those credit lines was drawn
at the end of 2024 nor will be maturing in 2025.
Eurofins believes it has sufficient liquidity to execute on the Group’s growth plans for 2025.
Ratings
Since July 2020, Eurofins has held a public long-term issuer credit rating by Moody’s Investor Services (“Moody’s”). The Group’s
investment grade rating is Baa3 with a stable outlook. Moody’s confirmed the Baa3 rating in March 2024.
In May 2021, Eurofins received its second credit rating by Fitch Ratings which assigned an investment grade credit rating of BBB-
with a stable outlook. Fitch Ratings confirmed the BBB- rating and the stable outlook in May 2023 and again in July 2024.
Some loans/facilities are secured by contingent securities over assets determined at local level (Note 2.32).
The hybrid capital, Eurobonds, Schuldschein loans and bilateral credit lines are neither secured nor include any financial
covenants.
The table below presents a summary of the Group’s fixed contractual cash obligations and commitments as of 31 December 2024.
These amounts are an estimate of future payments which could change as a result of various factors such as a change in interest
rates, foreign exchange, contractual provisions, as well as changes in our business strategy and needs. Therefore, the actual
payments made in future periods may vary from those presented in the following table:
Financial liabilities
In € millions
Total
Up to 1 year
2-5 years
Over 5 years
2024
Bonds
1
2,252.2
-
902.2
1,350.0
Schuldschein
1
536.5
233.5
175.5
127.5
Commercial paper
30.0
30.0
-
-
Short term Money Market
50.0
50.0
-
-
Bank borrowings
1
152.3
16.3
54.7
81.3
Bank overdrafts
0.6
0.6
-
-
Lease liabilities
607.5
150.2
357.6
99.7
Treasury shares in transit
2.5
2.5
-
-
Amounts due for business acq. (not
discounted)
118.5
46.8
66.9
4.7
Earnings due on hybrid capital
19.4
19.4
-
-
Current and future interest due
2
560.4
121.3
351.5
87.6
Trade accounts payable
645.9
645.9
-
-
Total
4,975.8
1,316.5
1,908.4
1,750.8
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
293
2023
Bonds
1
2,700.0
447.8
302.2
1,950.0
Schuldschein
1
536.5
-
409.0
127.5
Commercial paper
-
-
-
-
Bank borrowings
1
137.2
15.1
53.7
68.3
Bank overdrafts
0.2
0.2
-
-
Lease liabilities
578.9
142.7
340.2
96.0
Amounts due for business acq. (not
discounted)
165.8
37.6
124.5
3.7
Earnings due on hybrid capital
19.4
19.4
-
-
Current and future interest due
2
599.2
120.5
347.4
131.2
Trade accounts payable
600.2
600.2
-
-
Total
5,337.4
1,383.6
1,577.0
2,376.7
1
Par value.
2
Including interests due on borrowings until their full repayment, difference between net present value and future payments on lease liabilities and the impact of any derivative
financial instruments.
Leases
The Group has lease contracts for various items of real estate, vehicles and other equipment used in its operations. The Group
has multiple extension and termination options in a number of lease contracts. These are used to maximise operational flexibility
in terms of managing the assets used in the Group's operations. The options considered reasonably certain are part of lease
liabilities. However, the options not considered reasonably certain are not part of lease liability, which exposes the Company to
potential future cash outflows amounting to €47m.
The Group has the following minimum lease payment commitments:
Total
Up to 1 year
2-5 years
Over 5 years
In € millions
- Buildings
1
5.0
5.0
-
-
- Equipment, cars and others
2.2
1.4
0.9
-
Total
7.2
6.4
0.9
-
1
Undiscounted sum of future aggregate minimum lease payments, non-cancellable other than lease liabilities already reported in Note 2.18.
The Group recorded in 2024 expenses of €6m related to short term leases and an expense of ca. €2m relating to low-value assets,
which are recognised in other operating expenses.
Currency risk
Currency risk is the risk that reported financial performance, or the fair value or future cash flows of a financial instrument will
fluctuate because of changes in foreign exchange rates.
The Group operates in many countries and currencies and therefore currency fluctuations may impact Eurofins’ financial results.
Eurofins is exposed to currency risk in the following areas:
▪ Transaction exposures, related to anticipated sales and purchases and on balance-sheet receivables/payables resulting
from such transactions;
▪ Translation exposure of foreign-currency intercompany and external debt and deposits;
▪ Translation exposure of net income in foreign entities;
▪ Translation exposure of foreign-currency-denominated equity invested in consolidated companies;
▪ Translation exposure to equity interests in non-functional-currency investments in associates and other non-current financial
assets.
In 2024, the Group generated around 59% of its revenues outside of the Euro-Zone. The Group will continue to conduct its
business activities in the future via subsidiaries in various countries. However, in most cases, the revenues and operating results
as well as most items on the Consolidated Balance Sheet of its subsidiaries (intangible, fixed and current assets, some financial
and current liabilities) are settled in the domestic currency without any real exchange risk. Accounting-wise, these operating results
and Balance Sheet items are recorded in the relevant foreign currency and then converted into Euro, for translation into the
Consolidated Financial Statements at the applicable exchange rate.
In some cases, where an exchange rate risk might be applicable with revenues and cost structures in different currencies, the
Company may enter into some currency hedging instruments to avoid any exchange rate fluctuations.
The most significant currencies for the Group were translated at the following exchange rates into Euro:
Value
of €1
Balance Sheet
Income Statement
End of period rates
average rates
31 December 2024
31 December 2023
2024
2023
US Dollar
1.04
1.10
1.08
1.08
Pound Sterling
0.83
0.87
0.85
0.87
Canadian Dollar
1.49
1.46
1.48
1.46
Indian Rupee
89.20
91.94
90.56
89.31
Chinese Renminbi
7.56
7.85
7.79
7.66
Japanese Yen
162.79
155.72
163.88
152.03
Danish Krona
7.46
7.46
7.46
7.45
Australian Dollar
1.67
1.62
1.64
1.63
Taiwan Dollar
34.14
33.84
34.75
33.70
Hong Kong Dollar
8.04
8.62
8.44
8.47
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
294
As at 31 December 2024, the exposure to currency risk breaks down as follows:
Currency
In € millions
Assets
2
Liabilities
2
Off-Balance
Sheet
Commitments
Net position
before hedge
Hedge
Net position
after hedge
US Dollar
4,774.5
946.0
-
3,828.5
-
3,828.5
Pound Sterling
407.2
124.4
-
282.9
-
282.9
Canadian Dollar
303.8
122.0
-
181.7
-
181.7
Indian Rupee
255.6
73.9
-
181.7
-
181.7
Chinese Renminbi
244.2
112.9
-
131.3
-
131.3
Japanese Yen
233.5
71.3
-
162.2
-
162.2
Danish Krona
174.8
65.5
-
109.3
-
109.3
Australian Dollar
126.4
36.9
-
89.5
-
89.5
Taiwan Dollar
118.6
27.7
-
90.9
-
90.9
Hong Kong Dollar
97.6
24.9
-
72.7
-
72.7
Other
1
782.7
356.4
18.7
407.6
-
407.6
Total
7,518.7
1,961.8
18.7
5,538.2
-
5,538.2
1
Non Euro.
2
including Intercompany positions.
A 1 percentage point increase or decrease in exchange rates would have an impact of +/- €123.3m on the Group’s equity and an
impact on the Group’s EBITAS of +/- €6.6m.
Foreign exchange exposure also arises as a result of inter-company loans and deposits. When the lending company enters into
such arrangements, the financing is generally provided in the functional currency of the subsidiary entity. When such loans would
be considered to be part of the net investment in the subsidiary, net investment hedging would be applied. Translation exposure
of foreign-currency equity invested in consolidated entities is generally not hedged. The currency translation reserve increases
by €156.3m on Foreign operations and €61.4m on Net investments.
The net foreign exchange positive impact in Equity is mainly caused in 2024 by the appreciation of 6.6% of the USD and was
negative in 2023 due to the depreciation of 3.0% of the USD.
As at 31 December 2024, a weakening / a strengthening of USD by 1% versus the Euro would result in a decrease / an increase
in the currency translation reserve in equity of approximately €38.4m. Reference is made to the country risk paragraph for
countries with significant foreign currency denominated equity invested.
Detail of the currency translation reserve:
In € millions
2024
2023
Change of the period
Foreign operations – foreign currency translation gains/losses
156.4
-93.2
Net Investments revaluation
61.4
-59.5
Total
217.8
-152.7
Currency translation reserve – end of the period
351.7
135.8
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument might fluctuate because of changes in
market interest rates.
In order to finance parts of its acquisition and expansion costs, the Company and its subsidiaries have entered into several loan
and facility agreements as specified in Note 2.18.
The Group had, at year-end, outstanding debt of €3,610.3m (2023: €3,926.7m), which constitutes an inherent interest rate risk
with potential negative impact on financial results. The loans and facilities are based either on a fixed rate or on a variable rate.
The derivative financial instruments assets include caps for an amount of €2.0m as of 31 December 2024 in order to hedge the
Group’s exposure to interest rate fluctuations particularly related to the 2018 Schuldschein loan (€4.3m at end of 2023). The Group
has concluded hedging contracts, for an initial premium of €2.4m, in order to cap its floating interest rate against a fixed rate for a
total nominal amount of €99m.
Derivative financial instruments assets
In € millions
Note
2024
2023
Balance as of 1 January
4.3
5.6
Amortisation of Time Value
2.7
-0.3
-0.3
Fair Value adjustments through OCI
-2.0
-0.9
Balance as of 31 December
2.33
2.0
4.3
The amount booked in equity is transferred to net profit as far as the underlying instrument impacts the net profit.
The impact on the valuation of the financial instruments of a shift of +/-1 percentage point in the yield curve would not be material
on the Group’s total equity.
The Group’s net exposure to interest rate risk for the borrowings as per Consolidated Balance Sheet date, before taking into
account the above hedging transactions, is shown below:
CONSOLIDATED ANNUAL FINANCIAL STATEMENTS
295
2024
2023
Borrowings at fixed interest rates
91%
91%
Borrowings at floating interest rates
9%
9%
Given the breakdown between fixed rate and floating rate assets and liabilities as at 31 December 2024, a 1% increase or
decrease in interest rates would have a full-year impact of +/- €1.7m on results before income taxes.
Rate
Up to
2-5
Over
Total
In € millions
1 year
years
5 years
Short term deposits
Fixed
-83.3
-
-
-83.3
Floating
-
-
-
-
Bonds
Fixed
-
902.2
1,350.0
2,252.2
Floating
-
-
-
-
Schuldschein
Fixed
95.5
82.0
97.5
275.0
Variable
138.0
93.5
30.0
261.5
Commercial paper
Fixed
30.0
-
-
30.0
Floating
-