Sartorius AG · XETR:SRT

Sartorius — Sartorius Stedim Biotech — Shareholder Meeting (April 2018)

25 slides from Sartorius's shareholder meeting presentation, Apr 3, 2018

  1. Slide 1: Annual Shareholder Meeting

    Annual Shareholder Meeting Joachim Kreuzburg | Chairman of the Board and CEO | 03. April 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 01 FY 2017 Results | 2018 Guidance 02 Dividend Proposal 03 Strategy and mid-term targets 2025 3

  4. Slide 4: Another year of solid growth in revenue and profit

    Another year of solid growth in revenue and profit Continued profitable growth in a challenging market and FX environment Dampening effects only of temporary nature; strong finish to the year with double-digit order growth Progress in our multi-year investment program; portfolio expanded through acq

  5. Slide 5: Strong order intake; earnings influenced by FX headwinds

    Strong order intake; earnings influenced by FX headwinds Order intake Sales revenue EBITDA & margin2 EPS3 € in millions € in millions € in millions in € 1,162.3 1,080.8 1.92 1.96 1,051.6 1,081.0 294.9 288.7 27.5% 27.3% 2016 2017 2016 2017 2016 2017 2016 2017 + 8.8 %1 + 4.1 %1 + 2.2 % + 2.2 % 1 Const

  6. Slide 6: Different development in the regions

    Different development in the regions Americas EMEA Asia|Pacific Sales by Regions in € millions in € millions in € millions in % 454.4 460.7 387.8 368.8 EMEA ~ 43% 251.6 209.5 Americas ~ 34% € 1.08bn FY 16 FY 17 FY 16 FY 17 FY 16 FY 17 -3.5% +2.2% +21.4% Asia | Pacific ~ 23% Acc. to customers‘ locati

  7. Slide 7: Financial position remains very strong

    Financial position remains very strong Key financial indicators Net debt to underlying EBITDA Sartorius Stedim Biotech Dec. 31. Dec. 31. 1.5 2016 2017 1.0 1.0 1.0 Equity ratio in % 63.9 62.6 0.5 Net debt in € millions 67.6 127.1 0.4 0.4 0.5 0.2 Net cash flow from operating activities 156.7 174.7 201

  8. Slide 8: Considerable number of new jobs created again

    Considerable number of new jobs created again Group France + 70.5% + 81.1% + 7.8% + 4.8% 5.092 826 4.725 456 788 2.986 2012 ... 2016 2017 2012 ... 2016 2017  Nearly 5,100 people; 367 new employees, thereof 36 relating to the acquisition of Umetrics 8

  9. Slide 9: Balance sheet of the parent company

    Balance sheet of the parent company Balance sheet structure in € millions and % as at December 31, 2017 Equity and Assets Liabilities 14.5% 23.9 50.6 150 30.7% 100 50 85.5% 141.0 114.3 69.3% 164.9 164.9 Non-current assets Equity Current assets Total liabilities 9

  10. Slide 10: Share price now fully recovered after Q3 guidance adjustment

    Share price now fully recovered after Q3 guidance adjustment Market Capitalization SSB +0.5% NASDAQ Biotech +9.0% 130% €6.6 bn as of March 28, 2018 CAC Small +21.1% SBF120 +10.8% 115% 100% 85% 70% Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar 2017 2018  After nearly quadrupling over

  11. Slide 11: Outlook for 2018

    Outlook for 2018 Sartorius Stedim Biotech FY 2017 FY 2018 Guidance Sales revenue growth1 4.1% ~ 7% - 10% Underlying EBITDA margin 27.3% ~ +0.5pp1 Capex ratio 12.6% ~ 15% 1 In constant currencies  Growth guidance includes non-organic contribution by recent acquisition of ~ 0.5pp  As a result from t

  12. Slide 12: Agenda

    Agenda 01 FY 2017 Results | 2018 Guidance 02 Dividend Proposal 03 Strategy and mid-term targets 2025 12

  13. Slide 13: Strong dividend increase yet again

    Strong dividend increase yet again Earnings per share Dividend per share in € in € 1.92 1.96 0.46 1.51 0.42 0.33 0.95 0.82 0.22 0.20 2013 2014 2015 2016 2017 2013 2014 2015 2016 20171  9th dividend increase in succession  Total profit distributed would increase by 9.5% from €38.7mn to 42.4mn  Pay

  14. Slide 14: Agenda

    Agenda 01 FY 2017 Results | 2018 Guidance 02 Dividend Proposal 03 Strategy and mid-term targets 2025 14

  15. Slide 15: Sustainable profitable growth

    Sustainable profitable growth 2011-2017 Sales CAGR ~+14% EBITDA 1 margin +6.4pp 600 ~€1.5bn 40 ~+7-10% 39 38 400 +4.1% 37 36 +20.4% 35 34 €1.08bn 200 +19.4% 33 32 +15.9% 31 000 30 ~29-30 29 800 +10.8% 28 +10.3% ~+0.5pp 27 27.5 27.3 26 600 26.2 25 24 €477m 23 400 23.0 23.5 22 21 20.9 21.5 20 19 200 1

  16. Slide 16: On track to meet 2020 targets

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

  17. Slide 17: Regional balance better reflecting end-markets

    Regional balance better reflecting end-markets Sales by region 2011 Sales by region 2017 Global pharmaceutical market ~ €477m CAGR ~ €1.08bn ~ €1.1tn +17% Asia | Pacific ~ 20% Asia | Pacific ~ 23% Asia | Pacific ~ 26% +15% Americas ~ 27% Americas ~ 34% Americas ~ 51% +11% EMEA ~ 53% EMEA ~ 43% EMEA

  18. Slide 18: Offering the widest portfolio covering PD, up- and downstream

    Offering the widest portfolio covering PD, up- and downstream Process development Production Small-scale single-use bioreactors Q4 2013 Cell culture media Q1 2013 Single-use technology for sampling Cell line development Q2 2014 services Q3 2015 Single-use Software for bioprocess centrifuges Testing

  19. Slide 19: Strong competence in data analytics established

    Strong competence in data analytics established  Acquisition of Sweden-based software suite Umetrics  Powerful solutions for modeling and optimizing development and manufacturing processes for biopharmaceuticals  Digitalization of processes gain importance on customers` side  Possible applicatio

  20. Slide 20: Infrastructure prepared for further organic growth

    Infrastructure prepared for further organic growth Capex ratio currently on an elevated level in % ~15 16 12.6 14 12 9.2 10 6.5 7.6 8 5.8 6.2 6 4 2 0 2012 2013 2014 2015 2016 2017 2018e1 Yauco, Puerto Rico Doubling of fluid management ~15% 1 Based on guidance and filter capacities Capex ratio 20181

  21. Slide 21: Market fundamentals remain very attractive

    Market fundamentals remain very attractive Favorable demographics Increasing healthcare spending 9bn +6.5% people by 2050 CAGR of which >2bn of worldwide 60yrs or older prescription drug sales 2017-2022 ~8% CAGR of biopharma market until 2017-2025 Favorable R&D pipeline; strong Rise of biosimilars a

  22. Slide 22: The Chinese market will become increasingly important

    The Chinese market will become increasingly imporant China biologics market size Global biologics market growth RMB in bn outlook by region in % CAGR China biologics market size 2016(in-$bn, 20212012 e to 2021e) CAGR ~16% 20% 2016 - 2021e 350 ~16% 300 CAGR 16% 250 2012 - 2016 200 ~25% 12% ~9% 150 8%

  23. Slide 23: 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 SSBs` profitability level in 2-3 years Market environme

  24. Slide 24: Our Sartorius 2025 targets and initiatives

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

  25. Slide 25: Thank you for your attention

    “EE sartorius stedim biotech Thank you for your attention

Sartorius Stedim Biotech — Shareholder Meeting (April 2018) on 6ix