Sartorius AG · XETR:SRT

Sartorius — Non-Deal Roadshow (June 2015)

49 slides from Sartorius's roadshow presentation, Jun 17, 2015

  1. Slide 1: Investors' Presentation

    Investors‘ Presentation Munich | Milano, June 17-18, 2015

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains statements concerning the Sartorius Group’s future performance. These statements are based on assumptions and estimates. Although we are convinced that these forward- looking statements are realistic, we cannot guarantee that they will actually materialize. This

  3. Slide 3: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  4. Slide 4: Double-digit Growth Across the Board

    Double-digit Growth Across the Board Sartorius Group1) 3M 3M Change Change in € million (unless otherwise specified) 20142) 2015 in cc3) Order intake 225.1 276.1 22.7% 13.1% Sales revenue 203.1 258.1 27.0% 17.2% Underlying EBITDA4) 38.7 57.5 48.7% Underlying EBITDA margin in % 19.0 22.3 +330bps Unde

  5. Slide 5: All Regions Post Strong Growth

    All Regions Post Strong Growth Americas EMEA Asia | Pacific Sales1) by Regions Sales1) in € million Sales1) in € million Sales1) in € million in % 124.5 EMEA ~ 48% 107.1 80.7 53.1 52.9 Americas ~ 31% 42.9 € 258.1mn Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015 Asia | Pacific ~ 21 % + 27.4% + 14.8%

  6. Slide 6: Bioprocess Solutions: Performing Ahead of Expectations

    Bioprocess Solutions: Performing Ahead of Expectations Order Intake Sales Revenue EBITDA & Margin in € million in € million Underlying, in € million +18.3% cc +23.4% cc +29.5% +35.1% +57.3% +16.3% cc 204.7 +12.0% cc 186.0 46.5 158.1 163.2 153.9 29.6 25.0% 137.7 21.5% Q1 2014 ⌀ per qtr Q1 2015 Q1 201

  7. Slide 7: Lab Products & Services: Robust Start into the Year

    Lab Products & Services: Robust Start into the Year Order Intake Sales Revenue EBITDA & Margin in € million in € million Underlying, in € million +0.8% cc +4.3% cc +20.9% +6.6% +10.2% 71.5 72.1 67.0 65.4 11.0 9.1 15.2% 13.9% Q1 2014 Q1 2015 Q1 2014 Q1 2015 Q1 2014 Q1 2015  Order intake: solid perfo

  8. Slide 8: P&L and Cash Flow Impacted by Special Effects

    P&L and Cash Flow Impacted by Special Effects 3M 3M Change  Financial result burdened by Sartorius Group in € million 2014 2015 derivatives | fx-loans – mainly non-cash effective Underlying EBITDA 38.7 57.5 48.7%  Reported net profit includes Extraordinary items -1.2 -1.8 -47.7% book gain from Int

  9. Slide 9: All Key Financial Parameters Further Substantially Enhanced

    All Key Financial Parameters Further Substantially Enhanced Key Financial Indicators Net Debt to Underlying EBITDA Sartorius Group Dec. 31 March 31 3.0 20141) 2015 450 Equity ratio in % 39.1 43.9 2.0 300 Net debt in € million 335.6 269.7 150 1.0 Net debt to underlying 1.7 1.3 EBITDA 0 0.0 1 Q1-Q4 2

  10. Slide 10: Guidance 2015 Revised Upwards

    Guidance 2015 Revised Upwards Previous1) New1) Sales revenue Underlying Sales revenue Underlying growth EBITDA margin growth EBITDA margin Sartorius Group ~ 4% - 7% ~ 21.5% ~ 6% - 9% ~ 22.0% Bioprocess Solutions ~ 5% - 8% ~ 24.5% ~ 8% - 11% ~ 25.0% Lab Products & Services ~ 2% - 5% ~ 15.5% ~ 2% - 5%

  11. Slide 11: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  12. Slide 12: 2020 Growth Initiatives Are Well On Track

    2020 Growth Initiatives Are Well On Track 2011-2014 Strategic Initiatives 2020 Ambition Continued 845.7 877.3 operations 24 891.2 24 Regional 791,6 ~ €2 bn 791.6 Gain share in North America Sales Revenue 733.1 Leverage market growth in Asia 22 22 20 21.0 20 20.5 19.5 Portfolio ~ 2|3 ~ 1|3 19.0 18 18

  13. Slide 13: Bioprocess Solutions Market Share Gains in the Americas

    Bioprocess Solutions Market Share Gains in the Americas Share of Sales1) Sales Development Footprint CAGR2) Global biotech ~ 19% market ~ 50% 208.6 Bohemia, USA BPS ~ 34% New Oxford, USA Wilmington, USA 121.4 Mexico City, Yauco, Mexico Puerto Rico 2011 2014 Sales Production  Biggest single market f

  14. Slide 14: Increasing Potential for Bioprocess Solutions in Asia

    Increasing Potential for Bioprocess Solutions in Asia Share of Sales1) Sales Development Footprint 100% Other CAGR2) Beijing, China Seoul, Korea 75% ~ 19% Tokyo, Japan Shanghai, China Japan 127.0 ~ 21% 50% India Bangalore, South 79.0 India Korea Kuala Lumpur, Singapore, Singapore 25% Malaysia China

  15. Slide 15: Emerging Biosimilars Market Offers Additional Growth Opportunities

    Emerging Biosimilars Market Offers Additional Growth Opportunities Strong biosimilars pipeline driven by patent expiries  Biosimilars market forecast to expand fourfold, reaching $10bn by 2020  > 200 companies have > 700 biosimilars in global R&D pipelines  Production capacities mainly built up i

  16. Slide 16: Lab Products & Services Expands Direct Sales Channels

    Lab Products & Services Expands Direct Sales Channels Direct Sales Lab Distributors Field Force e-Business Streamline and focus Expand Build up 16

  17. Slide 17: Expansion of eBusiness Channels and Functions

    Expansion of eBusiness Channels and Functions  New, consistent product information system for > 10,000 products  Fast & flexible live chat service for online customer consultation  Product videos and application demos 17

  18. Slide 18: Lab Products & Services NA Sales Initiative Successfully Implemented

    Lab Products & Services NA Sales Initiative Successfully Implemented Share of Sales1) Sales Development Global Lab market2) ~ 42% CAGR3) ~ 9% 51.7 Sartorius LPS ~ 19% 38.7 2011 2014  North America biggest single lab market worth > €15bn  Sartorius‘ market share in North America substantially lower

  19. Slide 19: Portfolio Focused and Enhanced In-Line with Strategy

    Portfolio Focused and Enhanced In-Line with Strategy ~ €891 mn ~ €733 mn Lab Products & Services Lab Products & Services Biohit Liquid Handling AllPure Technologies Bioprocess Bioprocess Solutions TAP Biosystems Solutions BioOutsource1) Lonza Cell Culture Media Industrial Technologies Industrial Tec

  20. Slide 20: Extension of BPS's Offering Through Acquisition of BioOutsource

    Extension of BPS‘s Offering Through Acquisition of BioOutsource  BioOutsource provides contract testing services to monitor the quality and safety of biologics  Comprehensive suite of services, particularly for the biosimilars industry  Headquartered in Glasgow; sales revenue of ~ €9 mn; ~ 85 emp

  21. Slide 21: Acquisitions Remain Part of Our Strategy

    Acquisitions Remain Part of Our Strategy Acquisition Criteria Portfolio Market Position Complementary products Either among the Top 3 or or technologies unique position Integration Price Management capacity; cultural fit € Fair valuation; reach Sartorius‘ profitability level in 2-3 years Market envi

  22. Slide 22: Substantial Investments to Enable Future Growth

    Substantial Investments to Enable Future Growth New ERP CRM eShop Ongoing expansion of Consolidation and expansion Extension of global production capacity worldwide of operations at headquarters IT-infrastructure  Capex ratio projected at ~ 10% for the period 2015-17 22

  23. Slide 23: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  24. Slide 24: Sartorius in Brief

    Sartorius in Brief Founded 1870 Sales by Region2) Sales revenue ~ €891 mn EMEA ~ 49% EBITDA1) ~ €187 mn Americas Asia|Pacific EBITDA1) margin 21.0% ~ 29% ~ 22% Employees ~ 5,600 Market cap. ~ €1.7 bn Listed since 1990, Part of German TecDAX FY 2014 data 1) Underlying = excluding extraordinary items

  25. Slide 25: Sartorius Group Businesses Are Organized in Two Divisions

    Sartorius Group Businesses Are Organized in Two Divisions Bioprocess Solutions Lab Products & Services 69% 78% 31% 22% of Sales of EBITDA 1) of Sales of EBITDA1) Innovative single-use products and equipment Premium lab instruments, consumables and services for the production of biologics for R&D, QA

  26. Slide 26: Sartorius Legal & Operational Structure

    Sartorius Legal & Operational Structure Sartorius Group Legal Setup  ~ 50% Administered by executor  ~ 91% Free float Preference shares Ordinary shares  ~ 34% Bio-Rad Laboratories  ~ 9% Treasury shares Sartorius AG  ~ 9% Treasury shares Stock market listed in Germany  ~ 5% Family owned  ~ 2%

  27. Slide 27: Portfolio Focused and Enhanced In-Line with Strategy

    Portfolio Focused and Enhanced In-Line with Strategy ~ €891 mn ~ €733 mn Lab Products & Services Lab Products & Services Biohit Liquid Handling AllPure Technologies Bioprocess Bioprocess Solutions TAP Biosystems Solutions BioOutsource1) Lonza Cell Culture Media Industrial Technologies Industrial Tec

  28. Slide 28: Significant Capacity Available to Finance Non-organic Growth

    Significant Capacity Available to Finance Non-organic Growth  Net debt | underlying EBITDA at 1.3x1) Debt capacity  Covenants generally allow for net debt | underlying EBITDA of < 3.25x Free cash flow  Average free cash flow of more than €40 mn p.a. expected generation for the next five years Use

  29. Slide 29: Bioprocess Solutions

    Bioprocess Solutions Key Division Figures 2014  Sales Revenue €615.6 mn EMEA 45% Americas 34% Asia|Pacific 21%  Underlying EBITDA margin 23.7 %  Employees 3,527  Locations 30

  30. Slide 30: Solution Provider for Biomanufacturing

    Solution Provider for Biomanufacturing  Supplier of key production technologies to the biopharma industry  Product quality and supply security key success factors; high regulatory requirements; validated processes  Paradigm shift towards single-use solutions  Sartorius with broadest product port

  31. Slide 31: Multiple Drivers Fuel Significant Growth of the Biopharma Market

    Multiple Drivers Fuel Significant Growth of the Biopharma Market CAGR1) Biotech market 6-8% Market 2008 16% 2013 22% 2018 26% Growth Conventional | Unclassified Biotechnology Overproportionate Growth of Biopharma Market Past Present Technology Trends From Multi-Use to Single-Use 1) Evaluate Pharma:

  32. Slide 32: The Widest Product Portfolio Across the Biopharma Process Chain

    The Widest Product Portfolio Across the Biopharma Process Chain Upstream Bioprocessing Downstream Bioprocessing Media Seed Production Cell Removal | Viral Formulation| Capture Polishing Preparation Fermentation Fermentation Clarification Clearance Final Fill Services Evaluation & Optimization | Engi

  33. Slide 33: Leading Positions in Key Technology Platforms

    Leading Positions in Key Technology Platforms Merck| BPS Pall Thermo GE Top 3 Players Millipore 1. Pall Filtration 2. Merck|Millipore 3. Sartorius 1. Sartorius Fluid Management 2. Thermo Fisher 3. Merck|Millipore 1. Sartorius Fermentation 2. Thermo Fisher 3. GE 1. GE Purification 2. Merck|Millipore

  34. Slide 34: Lab Products & Services

    Lab Products & Services Key Division Figures 2014  Sales Revenue €275.5 mn EMEA 55% Americas 19% Asia|Pacific 26%  Underlying EBITDA margin 15.0 %  Employees 2,084  Locations 32

  35. Slide 35: Premium Lab Portfolio for Sample Prep. in R&D and QA

    Premium Lab Portfolio for Sample Prep. in R&D and QA  Integration of three independent lab businesses since 2012  Phase-out of certain product lines to focus portfolio on core laboratory applications  Overall phase-out effect on sales revenue of ~ 2 pct. points in 2014 Lab Instruments Lab Consuma

  36. Slide 36: Global Lab Market Provides Significant Growth Potential

    Global Lab Market Provides Significant Growth Potential Global Laboratory Products Market1) LPS Sales by Region North America ~ 42% Europe ~ 40% Americas ~ 19% EMEA ~ 55% ~ $39 bn ~ €276 mn Asia | Pacific ~ 26% Others ~ 4% Asia ~ 13%  Targeted market of > $3 bn  Average global market share of > 10

  37. Slide 37: Strong Positions in Key Categories

    Strong Positions in Key Categories Lab balances Pipettes Consumables Lab water systems #2 #4 #3 #4 Competitive Landscape  Mettler Toledo  Eppendorf  Merck|Millipore  Merck|Millipore  Mettler Toledo  Pall  Elga  Thermo Fisher  GE Whatman  Thermo Fisher  Gilson 37

  38. Slide 38: Service Is an Integral Part of the LPS Product Portfolio

    Service Is an Integral Part of the LPS Product Portfolio Premium service offering by more than 50 local service centers  Provides valuable insight into customer needs  Excellent vehicle for lead generation  Important factor for differentiation  Increases customer satisfaction & loyalty 38

  39. Slide 39: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  40. Slide 40: Key Account Business With Limited Dependence on Individual Accounts

    Key Account Business With Limited Dependence on Individual Accounts Sales to Top 50 customers in 2014, in € million 250 ~50% ~55% 200 ~45% ~40% Cumulative Share 150 ~30% 100 50 0 Top 10 11 to 20 21 to 30 31 to 40 41 to 50 Long term business relationships with leading Limited dependence on individual

  41. Slide 41: European Home Market; Americas and Asia Gaining Significance

    European Home Market; Americas and Asia Gaining Significance Share of Sales Rotterdam Share of Sales Americas Vilvoorde Kajaani Asia|Pacific Helsinki ~ 22% ~ 29% Royston St. Petersburg Glasgow Dublin Stonehouse Moscow Epsom Goettingen Poznan Guxhagen Tagelswangen Aubagne Budapest Vienna Lourdes Flor

  42. Slide 42: Product Portfolio Bioprocess Solutions (1|2)

    Product Portfolio Bioprocess Solutions (1|2) Filtration Purification 42

  43. Slide 43: Product Portfolio Bioprocess Solutions (2|2)

    Product Portfolio Bioprocess Solutions (2|2) Fluid Management Fermentation & Cell Culture Media 43

  44. Slide 44: Product Portfolio Lab Products & Services (1|3)

    Product Portfolio Lab Products & Services (1|3) Lab Balances Pipettes 44

  45. Slide 45: Product Portfolio Lab Products & Services (2|3)

    Product Portfolio Lab Products & Services (2|3) Moisture Analyser Mass comparators NucleoCounter Lab Water Systems Further Lab Instruments 45

  46. Slide 46: Product Portfolio Lab Products & Services (3|3)

    Product Portfolio Lab Products & Services (3|3) Lab Filtration Microbiological Quality Control 46

  47. Slide 47: Executive Board of Sartorius AG

    Executive Board of Sartorius AG Joachim Kreuzburg, CEO Jörg Pfirrmann, CFO Reinhard Vogt since 2003 since 2009 since 2009 Corporate Strategy, Operations, Finance, Human Resources, IT, Marketing, Sales & Services Legal Affairs, Compliance, General Administration Corporate Communications 47

  48. Slide 48: Financial Calendar

    Financial Calendar  July 21, 2015 Publication of half-year 2015 figures  October 20, 2015 Publication of nine-month 2015 figures  November 23, 2015 German Equity Forum in Frankfurt Main | Germany  January 2016 Publication of preliminary full-year 2015 figures 48

  49. Slide 49: Contacts

    Contacts Petra Kirchhoff Andreas Theisen Vice President Director Corporate Communications & IR Investor Relations Phone: +49.551.308.1686 Phone: +49.551.308.1668 E-mail: E-mail: petra.kirchhoff@sartorius.com andreas.theisen@sartorius.com Sartorius Corporate Administration GmbH Weender Landstrasse 94

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