Sartorius AG · XETR:SRT

Sartorius — Sartorius Stedim Biotech — Investor Presentation (November 2018)

35 slides from Sartorius's investor presentation, November 2018

  1. Slide 1: Investors Presentation

    Investors Presentation November 2018

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains statements concerning Sartorius Stedim Biotech 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 materia

  3. Slide 3: Agenda

    Agenda Overview and Strategy Mid-term Growth Prospects FY 2018 Guidance | 9M 2018 Results Appendix

  4. Slide 4: Sartorius at a glance

    Sartorius at a glance Industry A leading partner of the ~ €1.1bn focus biopharma industry Sales revenue Clear Making process development and production ~14% Clear mission Sales CAGR1) 2012-2017 mission processes of innovative biologics more efficient Attractive Biopharma market fueled by strong 27.1

  5. Slide 5: Covering most steps of the biopharma process chain

    Covering most steps of the biopharma process chain Fermentation Scale-up Clarification Culture media Seed cultivation Centrifugation preparation Sterile filtration Ultra-| Diafiltration Final filling Viral clearance Cryopreservation Polishing Sterile filtration Virus removal Concentration Filtration

  6. Slide 6: Strong market fundamentals

    Strong market fundamentals Favorable demographics Increasing healthcare spending 9bn +6.5% people by 2050; CAGR >2bn 60 yrs or worldwide older prescription drug sales 2017-2022 ~8% CAGR biopharma market Strong R&D pipeline; advances in Rise of biosimilars gene and cell therapy 2017-2025 ~25% >50% CA

  7. Slide 7: Sales revenue more than doubled over the last 6 years

    Sales revenue more than doubled over the last 6 years Sales CAGR ~ +14% EBITDA1) margin +6.4pp +4.1% 200 +20.4% 33 +19.4% €1.08bn 32 000 +15.9% 31 +10.8% 30 800 +10.3% 29 28 27 600 27.5 27.3 26 €477m 26.2 25 24 400 23 23.5 200 23.0 22 21 20.9 21.5 20 0 19 2011 2012 2013 2014 2015 2016 2017 Sales rev

  8. Slide 8: M&A strategy – adding innovation, enhancing focus

    M&A strategy – adding innovation, enhancing focus 2011 2018 Lonza Cell TAP Biosystems AllPure BioOutsource Cellca kSep Umetrics Culture Media Technologies Portfolio: Complementary products or technologies Acquisition criteria Market Position: Either among the Top 3 or unique selling point Integratio

  9. Slide 9: Strong positions in key technology platforms

    Strong positions in key technology platforms Sartorius Merck | Danaher | Thermo GE Top 3 Players Millipore Pall Fisher 1. Merck | Millipore Filtration 2. Danaher | Pall 3. Sartorius 1. Sartorius Fluid 2. Thermo Fisher Management 3. Merck | Millipore 1. Sartorius Fermentation 2. Thermo Fisher 3. GE 1

  10. Slide 10: Leader in the growing single-use technology market

    Leader in the growing single-use technology market Single use products offer advantages over conventional stainless-steel devices  Capex|Opex reduction over entire lifecycle -25-35%  Reduced risk of cross-contamination -30-50%  Higher flexibility; advantageous for biosimilars -55-65% -65-75% Sing

  11. Slide 11: Limited dependence on individual accounts

    Limited dependence on individual accounts Sales to Top 50 customers in 2017, € in millions 300 ~ 50% ~ 55% 250 ~ 45% ~ 40% 200 Cumulative share ~ 25% 150 100 50 0 Top 10 11 to 20 21 to 30 31 to 40 41 to 50 Long-term business relationships with Limited dependence on individual accounts leading global

  12. Slide 12: Agenda

    Agenda Overview and Strategy Mid-term Growth Prospects FY 2018 Guidance | 9M 2018 Results Appendix 12

  13. Slide 13: Sartorius 2025 targets and initiatives

    Sartorius 2025 targets and initiatives Strategic initiatives 2025 targets Regional  Participate in strong Chinese market growth  Continue to outperform the important U.S. market ~ €2.8 bn 1 Portfolio Sales revenue  Add high-impact innovation, e.g. digital tools  Enhance process development capab

  14. Slide 14: U.S. remains most important market; China with highest growth rates

    U.S. remains most important market; China with highest growth rates Biologics market growth forecast CAGR 2018 to 2022, $ in billions U.S. U.S. ~ 115 ~ 163 Europe ~ +9% U.S. Europe ~ 50 ~ 65 China ~ +7% Europe China ~ 33 ~ $250bn ~ $345bn ~ 60 ROW ~ +16% China ROW ~ 51 ~ 57  Biologic market in Chin

  15. Slide 15: Continuous market share gains in the Americas

    Continuous market share gains in the Americas Sales growth Americas Footprint Sales share America ~ +15% 2017: 34% CAGR1) 2011-17 Bohemia 368.8 New Oxford 2011: 27% Mexico City Yauco 130.9 Production | Sales 2011 2017 Sales 1) In constant currencies Key initiatives:  U.S. sales organization establi

  16. Slide 16: Business development in Asia in line with strong market growth

    Business development in Asia in line with strong market growth Sales growth Asia Footprint Sales share Asia|Pacific ~ +17% CAGR1) 2011-17 2017: 23% Beijing Seoul Tokyo 251.6 2011: 20% Shanghai Hanoi Bangalore 95.1 Kuala Lumpur Singapore Production | Sales 2011 2017 Sales 1) In constant currencies Ke

  17. Slide 17: Biosimilars: Strong growth, big opportunities

    Biosimilars: Strong growth, big opportunities Biosimilars will outperform the biologics market € in billions ~ +25% CAGR ~ 58  Major blockbuster biologics are going off patent  Lower prices will lead to higher production volumes ~ 10 ~ 402  Time-to-market is key as only the first few biosimilar p

  18. Slide 18: The biopharma market is not yet mature, but is maturing

    The biopharma market is not yet mature, but is maturing ... not mature because Cumulative investment and absolute  Underpenetrated global market survival rate in drug development Cumulative investmt (€ in millions) 100 1,500  Strong flow of innovation Absolute survival rate %  Time-consuming prod

  19. Slide 19: Digitalization is arriving in biopharma

    Digitalization is arriving in biopharma Collect data Sartorius offers the leading software Improve Monitor & process control for bioprocess data analytics  Enhanced process control and robustness Analyze  Improved product quality  Predictive process control  Powerful solutions for modeling and o

  20. Slide 20: Four strong pillars drive above-average growth

    Four strong pillars drive above-average growth Pharma market CAGR 4-7% ~ +11% Organic CAGR1) Biopharma market CAGR ~8% Single-use penetration Double-digit growth 0 2) Market share gains Esp. in North America 2013 2014 2015 2016 2017 2018 1) CAGR 2013 to 2018e, excluding FX effects and acquisitions 2

  21. Slide 21: Agenda

    Agenda Overview and Strategy Mid-term Growth Prospects FY 2018 Guidance | 9M 2018 Results Appendix 21

  22. Slide 22: Outlook for 2018 confirmed and specified

    Outlook for 2018 confirmed and specified FY 2018 Guidance1) Previous New Upper range Sales revenue growth ~ 11% - 14% ~ 11% - 14% ~28.0% Underlying EBITDA margin ~28.0% vs. FY17: 27.3% CAPEX ratio ~ 15% ~ 15% 1) In constant currencies  Growth guidance includes non-organic contribution by recent acq

  23. Slide 23: Dynamic profitable growth against moderate comps

    Dynamic profitable growth against moderate comps Sartorius Stedim Biotech Group in millions of € unless otherwise specified 9M 20171) 9M 2018 in % in % cc 2) Sales revenue 804.7 896.1 +11.4 +13.8 Order intake 853.0 955.6 +12.0 +14.5 Underlying EBITDA3) 214.5 251.4 +17.2 Underlying EBITDA3) margin in

  24. Slide 24: Growth in all regions, the Americas with highest momentum

    Growth in all regions, the Americas with highest momentum Americas EMEA Asia|Pacific Sales by Regions in € millions in € millions in € millions in % 376.5 315.8 344.2 272.6 EMEA ~ 42% 187.9 203.8 Americas ~ 35% ~ €896.1m 9M 17 9M 18 9M 17 9M 18 9M 17 9M 18 +20.3% +9.8% +11.9% Asia|Pacific ~ 23% Acc.

  25. Slide 25: Significant increase in operating cash flow

    Significant increase in operating cash flow Sartorius Stedim Biotech Group € in millions unless otherwise specified 9M 20171) 9M 2018 in %  Net operating cash flow driven by higher earnings Underlying EBITDA 214.5 251.4 +17.2  Net investing cash flow reflects Extraordinary items -11.9 -8.5 +28.4 e

  26. Slide 26: Financial position remains strong

    Financial position remains strong Key Financial Indicators Net Debt and Net Debt to Underlying EBITDA Sartorius Stedim Biotech Dec. 31, 2017 Sep. 30, 2018 180 1.8 Equity ratio in % 62.6 61.6 150 1.5 120 1.2 Net debt in millions of € 127.1 137.9 90 0.9 60 0.6 Net debt | underlying EBITDA 0.4 0.4 30 0

  27. Slide 27: Infrastructure prepared for further organic growth

    Infrastructure prepared for further organic growth Capex ratio Capex composition 2018 in % ~15 14 12.6 12 10 9.2 10 7.6 8 5.8 6.5 6.2 ~x ~7%% Major projects 6 4 Regular expansion ~3% 2 0 ~2% Cap. R&D 20121) 2013 2012 20131 2014 2015 2016 2017 2018 20182) 2019 1) Incl. discontinued operation 2) Based

  28. Slide 28: Appendix

    “EE: sartorius stedim biotech Appendix

  29. Slide 29: Sartorius shares – an attractive investment

    Sartorius shares – an attractive investment Biopharma market fueled by Leading market positions in Global presence with strong long-term growth drivers key technologies and high base in growth regions brand awareness High entry barriers, low price- Diversified revenue base and Proven growth track re

  30. Slide 30: Share price performance

    Share price performance 350% 300% 250% Sartorius (prefs.) 200% Sartorius (ord.) Sartorius Stedim Biotech 150% NASDAQ Biotech 100% CAC Mid & Small SBF 120 50% 0% Apr-16 Jun-16 Apr-17 Jun-17 Apr-18 Jun-18 Dec-15 Feb-16 Aug-16 Dec-16 Feb-17 Aug-17 Dec-17 Feb-18 Aug-18 Oct-15 Oct-16 Oct-17 Share key fac

  31. Slide 31: Strong worldwide presence

    Strong worldwide presence Rotterdam Vilvoorde Epsom Royston Malmö Helsinki Glasgow Dublin Goettingen Stonehouse Poznan Laupheim Guxhagen Tagelswangen Budapest Lourdes Vienna Bohemia Florence New Oxford Madrid Beijing Aubagne Seoul Tokyo M’ Hamdia Shanghai Mexico City Yauco Hanoi Bangalore Kuala Lump

  32. Slide 32: Extract of the product portfolio

    Extract of the product portfolio Filtration Purification Fluid Management Fermentation & Cell Culture Media 32

  33. Slide 33: On track to meet 2020 targets

    On track to meet 2020 targets Strategic Strategic initiatives Initiatives 2020 targets 2020 Targets Regional  Further grow sales force effectiveness ~ €1.5-1.6 bn  Gain share in North America Sales revenue  Leverage market growth in Asia Portfolio  Alliances and acquisitions ~ 4|5 ~ 1|5 Organic

  34. Slide 34: Sartorius Stedim Biotech Group Executive Committee

    Sartorius Stedim Biotech Group Executive Committee Joachim Kreuzburg, CEO Volker Niebel Oscar-Werner Reif Reinhard Vogt since 2007 since 2007 since 2009 since 2007 Finance, Legal & Compliance, Production, Business Processes, Research & Development Marketing, Sales & Services Communications, Human Su

  35. Slide 35: Financial calendar and contacts

    Financial calendar and contacts  October 31, 2018 Petra Kirchhoff Société Générale Roadshow | Paris Head of  November 12, 2018 Corporate Communications & IR HSBC Healthcare Day | Frankfurt Phone: +49.551.308.1686  January 10-11, 2018 E-mail: Oddo Midcap Conference | Lyon petra.kirchhoff@sartorius

Sartorius Stedim Biotech — Investor Presentation (November 2018) on 6ix