Sartorius AG · XETR:SRT
Sartorius — 20. Baader Small und Mid Cap Konferenz 2008
39 slides from Sartorius's conference presentation, Sep 11, 2008
Slide 1: 20. Baader Small und Mid Cap Konferenz
Platzhalter Bild 20. Baader Small und Mid Cap Konferenz Unterschleißheim, 11. September 2008, Andreas Wiederhold, Treasury & Investor Relations
Slide 2: Agenda
Agenda • Company Profile • Biotechnology Division • Mechatronics Division Platzhalter Bild • Key Financials • The Sartorius Share • Outlook 2008 • Appendix
Slide 3: The Biotechnology Division
The Biotechnology Division Total Solution Provider for Biomanufacturing Focus on single-use technology Sales revenue in 20071): €375.9mn EBITA margin in 20071)2): 13.2% Listed as Sartorius Stedim Biotech in Paris 70% hold by Sartorius AG 1) Pro forma: As having Sartorius Stedim Biotech con
Slide 4: The Mechatronics Division
The Mechatronics Division Global Full-Liner of Weighing Equipment and Control Technology Focus on lab and industrial applications Sales in 20071): €246.8mn EBITA margin in 20071)2): 8.6% 100% owned by Sartorius AG 1) Pro forma: Excluding the hydrodynamic bearing business since January 1st, 2
Slide 5: Structure of the Sartorius Group
Structure of the Sartorius Group Sartorius AG Other Shareholders 100% approx. 70% approx. 30% Sartorius Mechatronics Sartorius Stedim Biotech S.A. page 5
Slide 6: Agenda
Agenda • Company Profile • Biotechnology Division • Mechatronics Division Platzhalter Bild • Key Financials • The Sartorius Share • Outlook 2008 • Appendix
Slide 7: Total Solution Provider for Next Generation Biomanufacturing
Total Solution Provider for Next Generation Biomanufacturing Most complete product and service portfolio along the process chain of the biotech industry Focus on single-use products (~ 75% of sales revenue) page 7
Slide 8: Our Product Portfolio
Our Product Portfolio Bioreactors Filtration Fluid Management Market size ~€300mn ~€850mn ~€200mn Market growth Single to double-digit Double-digit Double-digit Market leader Among the top 3 Market leader Market position (25% - 30%) (22% - 25%) (~50%) NBS (Eppendorf), Millipore, Pall Thermo Fisher,
Slide 9: Trend to Biopharmaceutical Production
Trend to Biopharmaceutical Production Share of Biotech Drug Approvals in the USA in % Since 2002, more than 50% of newly 60 approved drugs are biotechnologically produced. 50 The installed production base still consists to ~85% of classical pharma products. 40 30 20 10 0 1993 1996 1999 2002 2005
Slide 10: Pipeline Filled with Biotech Drugs
Pipeline Filled with Biotech Drugs Total Number of Biotech Drugs Currently, more than 1,000 biotech drugs in 1000 clinical stages 900 About one-fifth in the last clinical phase 800 No straight-line development but outlook 700 very positive 600 500 400 300 200 100 0 1995 2000 2005 2010e In clin
Slide 11: Trend to Single-Use Products
Trend to Single-Use Products + Reduced upfront investment + Reduced cleaning costs + Reduced downtime = Reduced life-cycle costs by approx. 15% - 40%* + Greater flexibility + Reduced risk of cross-contamination Source: biopharm services page 11
Slide 12: Increasing Penetration of Single-Use Products in Biomanufacturing
Increasing Penetration of Single-Use Products in Biomanufacturing Portion of single-use products Within the installed processes, in total 100% single-use products are only used in about 10%-20% of the potential applications. The actual use of disposables differs widely from lower (e.g. disposabl
Slide 13: Attractive Growth Perspectives
Attractive Growth Perspectives + 6% underlying classic pharma growth + Market penetration by biotech drugs = ~12% CAGR for biotech + Paradigm shift to disposables = ~18% CAGR for innovative disposables Source: own estimates page 13
Slide 14: Agenda
Agenda • Company Profile • Biotechnology Division • Mechatronics Division Platzhalter Bild • Key Financials • The Sartorius Share • Outlook 2008 • Appendix
Slide 15: Global Full-Liner of Weighing Equipment and Control Technology
Global Full-Liner of Weighing Equipment and Control Technology Full range of products for laboratory and industrial applications Focused on premium to standard segment Global production, sales and service network page 15
Slide 16: Global Production, Sales and Service Network Leads to
Global Production, Sales and Service Network Leads to Differentiation from local and regional competition Strong position for key account management High product availability in line with customer-oriented solutions page 16
Slide 17: Market Overview
Market Overview Laboratory business Industrial business Market size €300mn – 400mn €1.5bn - 2.0bn Market growth ~ 2% - 3% ~ 5% Market share ~ 30% ~ 5% Economies of scale Moderate Significant Main competitor Mettler Toledo (~40%) Mettler Toledo (~20%) Source: own estimates; in our specific market seg
Slide 18: Market Trends
Market Trends Increasing demand for improvement in production efficiency and safety - Shifting of quality control from laboratory to assembly line - Integration of weighing and control technology into production processes Growing demand in emerging markets page 18
Slide 19: Asia is the Main Growth Driver for the Industrial Business
Asia is the Main Growth Driver for the Industrial Business Strongest growing single market Highest potential for additional market share Thus, highest potential for economies of scale Production and Sales facilities sales facilities page 19
Slide 20: Agenda
Agenda • Company Profile • Biotechnology Division • Mechatronics Division Platzhalter Bild • Key Financials • The Sartorius Share • Outlook 2008 • Appendix
Slide 21: Sales Revenue by Division
Sales Revenue by Division Currency-adjusted; in millions of € Group: +3.8% Group’s sales growth impacted by currency translation effects of €12.5mn (4.1%) 280 Overall growth in the Mechatronics Division 240 in line with our expectation +2.8% 200 Sales revenue for the Biotechnology Division sig
Slide 22: Sales Revenue by Region – Biotech
Sales Revenue by Region – Biotech Currency-adjusted; in millions of € +11.9% Strong growth in Europe reflects the 120 successful integration process and the strong positioning in the market 100 Sales in Asia | Pacific effected by 80 fluctuations in equipment business; dynamic development in sing
Slide 23: Market Situation North America
Market Situation North America Causes for the shortfall at certain key accounts in the North American biotech market - FDA restricted market approvals - Reduction in manufacturing runs - Tighter inventory management - Delay in FDA approvals Consequences of the shortfall and outlook - Sales reven
Slide 24: Sales Revenue by Region – Mechatronics
Sales Revenue by Region – Mechatronics Currency-adjusted; in millions of € 80 +6.0% Overall growth (+5.5% in constant currencies) in line with our expectation 60 Strong growth in Asia | Pacific according to our strategy 40 US market difficult +9.4% Q2 order intake signals a cool down -1.3% 2
Slide 25: EBITA
EBITA in millions of € 28.9 EBITA margin for the Sartorius Group at -6.6% 27.0 (9.5%) (8.9%) 8.9% (prev. year: 9.5%) 25 Based on previous year’s exchange rate the EBITA margin has increased to close to 10% 20 20.4 21.3 -3.8% (11.4%) (11.1%) 15 10 -14.4% 5 7.7 6.6 (6.5%) (5.5%) 0 H1 2007* H1 2008
Slide 26: Cash Flow Statement
Cash Flow Statement in millions of € Cash flow from working H1 | 2008 H1| 2007 capital influenced by increased inventories in connection with Cash earnings 29.2 28.7 new product launches Positive net cash flow Cash flow from -21.3 -18.7 expected for the full year 2008 working capital Cash flow f
Slide 27: Balance Sheet as of June 30, 2008
Balance Sheet as of June 30, 2008 Assets Equity and Liabilities Non-current assets €550.9mn 66.5% Equity €326.9mn 39.4% Current assets €278.1mn 33.5% Financial debt €234.6mn 28.3% Non-financial debt €267.5mn 32.3% Total €829.0mn 100% Total €829.0mn 100% • Ratio of net debt to EBITDA (Leverage): 2.3
Slide 28: Agenda
Agenda • Company Profile • Biotechnology Division • Mechatronics Division Platzhalter Bild • Key Financials • The Sartorius Share • Outlook 2008 • Appendix
Slide 29: Share Price Development
Share Price Development in € 45,00 45,00 40,00 40,00 35,00 35,00 30,00 30,00 25,00 25,00 20,00 20,00 15,00 15,00 10,00 10,00 5,00 5,00 0,00 0,00 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Ordinary share Preference share page 29
Slide 30: Share Price Development in Comparison to the DAX and TecDAX
Share Price Development in Comparison to the DAX and TecDAX in % 1200% 1200% 1000% 1000% 800% 800% 600% 600% 400% 400% 200% 200% 0% 0% Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Ordinary share Preference share DAX TecDAX page 30
Slide 31: Agenda
Agenda • Company Profile • Biotechnology Division • Mechatronics Division Platzhalter Bild • Key Financials • The Sartorius Share • Outlook 2008 • Appendix
Slide 32: Outlook 2008
Outlook 2008 Sales revenue and profitability of H2 I 2008 above H1 I 2008 for both divisions Higher growth rate in the second half than in the first half for the Biotech Division Slightly dampened pace of growth presumed for the Mechatronics Division due to a weaker economic environment Howe
Slide 33: Thank you very much for your attention.
Platzhalter Bild Thank you very much for your attention.
Slide 34: Agenda
Agenda • Company Profile • Biotechnology Division • Mechatronics Division Platzhalter Bild • Key Financials • The Sartorius Share • Outlook 2008 • Appendix
Slide 35: Global Presence
Global Presence Production and sales facilities Sales facilities page 35
Slide 36: Facts about Sartorius Shares – Shareholding Structure
Facts about Sartorius Shares – Shareholding Structure Ordinary share Preference share 8,9 9 9 Administered by executor 50,1 Family owned 25 Bio-Rad Laboratories Inc. Free float 7 Own shares 91 ISIN Ordinary share: DE0007165607; preference share: DE0007165631 Market segment Prime Standard (technology
Slide 37: Facts about Sartorius Stedim Biotech Shares – Shareholding Structure
Facts about Sartorius Stedim Biotech Shares – Shareholding Structure % of share capital % of voting rights 21 19 9 8 70 73 Sartorius* Founders Free float ISIN FR0000053266 Market segment EURONEXT PARIS - Euronext - Local Securities Number of shares 16,903,188 Voting rights 18,916,888 *Sartorius AG a
Slide 38: Contacts
Contacts Heiko Imöhl Andreas Wiederhold Vice President Group Financing & Investor Relations Treasury & Investor Relations Phone: +49.551.308.4034 Phone: +49.551.308.1668 Fax: +49.551.308.1654 Fax: +49.551.308.3154 E-mail: heiko.imoehl@sartorius.com E-mail: andreas.wiederhold@sartorius.com Sartorius
Slide 39: Disclaimer
Disclaimer This presentation contains statements concerning the Sartorius and the 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
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