Sartorius AG · XETR:SRT
Sartorius — Sartorius Stedim Biotech — Shareholder Meeting (April 2017)
30 slides from Sartorius's shareholder meeting presentation, Apr 4, 2017
Slide 1: Annual Shareholders' Meeting on April 4, 2017
Welcome | Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue | Benvenuti Annual Shareholders’ Meeting on April 8, 2014 Annual Shareholders’ Meeting on April 4, 2017 Bienvenue | Benvenuti | Bienvenido | Willkommen | Welcome | Bienvenue | Benvenuti | Bienvenid Willkommen | Welcome |
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
Slide 3: Agenda
Agenda 01 2016 Results Review 02 Dividend Proposal 03 Execution on mid-term plan 04 Outlook 2017 05 Adjustments to Board of Directors
Slide 4: Another year of healthy growth in revenues and profits
Another year of healthy growth in revenues and profits 2016 Continued double-digit top line growth Economies of scale drive overproportionate expansion of profitability Single-use portfolio complemented through the acquisition of kSep Systems Acceleration and step up of investments to support future
Slide 5: Excellent development in line with upgraded expectations
Excellent development in line with upgraded expectations Order Intake Sales Revenue Sales Revenue and Growth by Region in € millions in € millions in € millions unless otherwise specified 1,080.8 1,051.6 946.4 EMEA 454.4 | +16.5% 884.3 Americas 387.8 | +21.0% € 1.05bn Asia | Pacific 209.5 | +29.0% F
Slide 6: Overproportionate earnings growth yet again
Overproportionate earnings growth yet again Underlying EBITDA and Margin Earnings per Share1 in € 39,9 39,6 288,7 39,3 39 38,7 38,4 38,1 37,8 37,5 37,2 36,9 36,6 36,3 36 231,3 35,7 35,4 35,1 34,8 34,5 34,2 1.92 33,9 33,6 33,3 33 32,7 32,4 32,1 1.5 31,8 31,5 31,2 1.51 30,9 30,6 160,5 30,3 30 29,7 29,
Slide 7: Healthy cash flow performance; influenced by acquisitions
Healthy cash flow performance; influenced by acquisitions Sartorius Stedim Biotech Group Change FY 2015 FY 2016 in % € in millions Net cash flow from operating activities 142.8 156.7 +9.7 Net cash flow from investing activities 1 -106.3 -102.7 +3.4 Net cash flow from financing activities -27.2 -50.1
Slide 8: Financial position remains very strong
Financial position remains very strong Balance Sheet Net Debt to underlying EBITDA in € millions unless otherwise specified in € millions 1,5 150 130.0 25.6% 23.8% 113.7 1,2 32.9% 36.1% 1.5 13.7% 12.3% 87.4 86.4 100 1.0 1.0 0,9 1.2 67.6 0.90,6 67.1% 63.9% 63.9% 60.7% 50 0.6 0.5 0.4 0,3 0.3 0.2 0 FY
Slide 9: Balance sheet of the parent company
Balance sheet of the parent company Sartorius Stedim Biotech S.A. December 31, 2016; € in millions (unless otherwise specified) Assets Equity and Liabilities Non-current assets 136.5 87.6% Equity 103.6 66.4% Current assets 19.4 12.4% Liabilities 19.4 33.6% Total 155.9 100% Total 155.9 100% 9
Slide 10: Stable share price development after a steep increase in 2015
Stable share price development after a steep increase in 2015 SSB +1.8% Market Capitalization NASDAQ Biotech -21.7% 130% CAC Small +9.9% €5.8 bn SBF120 +4.7% 105% as of March 31, 2017 90% 85% 70% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar 2016 2017 Share price more than doubled i
Slide 11: Agenda
Agenda 01 2016 Results Review 02 Dividend Proposal 03 Execution on mid-term plan 04 Outlook 2017 05 Adjustments to Board of Directors
Slide 12: Strong dividend increase yet again
Strong dividend increase yet again Earnings per Share Dividend per Share in € in € 1.92 0.42 1.51 0.33 0.95 0.22 0.82 0.18 0.20 0.70 2012 2013 2014 2015 2016 2012 2013 2014 2015 20161 8th dividend increase in succession Total profit distributed would increase by 26.0% from €30.7mn to 38.7mn Pa
Slide 13: Agenda
Agenda 01 2016 Results Review 02 Dividend Proposal 03 Execution on mid-term plan 04 Outlook 2017 05 Adjustments to Board of Directors
Slide 14: SSB has a unique position in an attractive market
SSB has a unique position in an attractive market, ... Broadest portfolio in the industry Pioneer & market leader in SU-technologies; 75% recurring revenue Leading positions in key technology platforms > 85% of sales generated from a TOP 1-3 position Strong reputation in a market with high entry bar
Slide 15: A strong track record of profitable growth
... a strong track record of profitable growth... 2011-16 Sales CAGR ~ +15.5% EBITDA1 Margin +6.6 pp 0 +20.4% 33 +19.4% 32 +15.9% €1.05bn 31 0 30 +10.8% 29 +10.3% 28 0 27 26 25 0 27.5 24 €477m 26.2 23 22 0 21 23.0 23.5 20 20.9 21.5 19 0 18 17 16 0 15 2011 2012 2013 2014 2015 2016 Sales revenue EBITD
Slide 16: Well on track to meet 2020 targets
... and is well on track to meet 2020 targets Strategic Initiatives ~ €1.5-1.6 bn 2 Regional Gain share in North America Sales revenue Leverage market growth in Asia ~ 4|5 ~ 1|5 Portfolio Organic Acquisitions Alliances and acquisitions Own product development ~ 29-30% 2 Infrastructure EBITDA
Slide 17: Continuous market share gains in the Americas
Regional | Portfolio | Infrastructure Continuous market share gains in the Americas Sales Growth Americas Footprint Sales Share America ~ 20% 2016: 37% CAGR1 2011-16 Bohemia 387,8 New Oxford 2011: 27% Mexico City Yauco 130,9 Production | Sales 2011 2016 Sales 2010 2012 2013 2015 2016 Own sales O
Slide 18: Business development in Asia in line with strong market growth
Regional | Portfolio | Infrastructure Business development in Asia in line with strong market growth Sales Growth Asia Footprint ~ 17% CAGR1 2011-16 Beijing Seoul Tokyo Shanghai 209.5 Hanoi Bangalore 95.1 Kuala Lumpur Singapore Production | Sales 2011 2016 Sales 2011 2013 2014 2016 Optimized go-to
Slide 19: Portfolio enhanced by seven acquisitions since 2011
Regional | Portfolio | Infrastructure Portfolio enhanced by seven acquisitions since 2011 Acquisition Criteria Portfolio: Integration: Complementary products or technologies Management capacity; cultural fit Market Position: Price: Either among the Top 3 or unique position Fair value; reach
Slide 20: kSep acquisition in 2016 complemented single-use portfolio
Regional | Portfolio | Infrastructure kSep acquisition in 2016 complemented single-use portfolio Unique single-use centrifugation systems for cell harvest in bioproduction Annual sales of ~ €5m; purchase price of ~ $28m Integration completed; positive development in the first months low cell d
Slide 21: Recent acquisition of biopharma software developer Umetrics
Regional | Portfolio | Infrastructure Recent Acquisition of leading biopharma software developer Umetrics Highly specialized provider of data analytics software Powerful solutions for modeling and optimizing development and manufacturing processes of biopharmaceuticals Successful distribution
Slide 22: Significant expansion of production capacities initiated in 2016
Regional | Portfolio | Infrastructure Significant expansion of production capacities initiated in 2016 1400 Capacities increased earlier and to a greater extent 1200 Capex Development than initially planned due to strong organic growth 1000 Capacities at Yauco plant for single-use bags and 800 ~
Slide 23: Ongoing digitalization and roll-out of efficient IT systems
Regional | Portfolio | Infrastructure Ongoing digitalization and roll-out of efficient IT systems Sales Commercial New Marketing Operations CRM Roll-out of new ERP system well advanced; implementation at sites in France, Tunesia and Belgium in 2016 New CRM system to support even more efficient p
Slide 24: Considerable number of new jobs created again
Regional | Portfolio | Infrastructure Considerable number of new jobs created again Group France Corporate Values + 58.2% + 72.8% SUSTAINABILITY Growing profitably and + 12.5% + 5.2% acting responsibly. OPENNESS 4.725 788 Driving change and progress internally and externally. 4.202 456 749 2.986 ENJ
Slide 25: Agenda
Agenda 01 2016 Results Review 02 Dividend Proposal 03 Execution on mid-term plan 04 Outlook 2017 05 Adjustments to Board of Directors
Slide 26: Continued sales and earnings growth expected for 2017
Continued sales and earnings growth expected for 2017 FY 2016 FY 2017 Guidance Sales revenue growth1 20.4% ~ 8% - 12% Underlying EBITDA margin 27.5% ~ +0.5pp1 Capex ratio 7.6% ~ 10% - 13% 1 In constant currencies Guidance includes ~ 1 pp of growth expected to be contributed by the acquisition of U
Slide 27: Agenda
Agenda 01 2016 Results Review 02 Dividend Proposal 03 Execution on mid-term plan 04 Outlook 2017 05 Adjustments to Board of Directors
Slide 28: Board of Directors adjusted in line with international practice
Board of Directors adjusted in line with international practice Size of the Board of Directors reduced from ten to seven members Responsibilities of Board of Directors and operational management (GEC) sharpened Former Board members Volker Niebel, Oscar-Werner Reif and Reinhard Vogt remain full
Slide 29: Next Annual Shareholders' Meeting on April 3, 2018
Next Annual Shareholders‘ Meeting of Sartorius Stedim Biotech S.A. | April 3, 2018 | Aubagne | Next Annual Shareholders’ Meeting on April 3, 2018 Next Annual Shareholders‘ Meeting of Sartorius Stedim Biotech S.A. | April 4, 2017 | Aubagne | Next Annual Shareholders‘ Meeting of Sartorius Stedim Biote
Slide 30: Financial calendar and contacts
Financial calendar and contacts Petra Kirchhoff April 24, 2017 Publication of first-quarter 2017 results Vice President Corporate Communications & IR May 3, 2017 Deutsche Bank HC Conference | Boston Phone: +49.551.308.1686 E-mail: petra.kirchhoff@sartorius.com May 30, 2017 Gilbert Dupont Healt
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