Sartorius Ag · XETR:SRT

Sartorius — Investor Day (February 2018)

29 slides from Sartorius's investor day presentation, Feb 21, 2018

  1. Slide 1: Capital Markets Day Keynote

    Capital Markets Day February 21, 2018 Keynote

  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: Corporate strategy and mid-term outlook

    Corporate strategy and mid-term outlook Joachim Kreuzburg | Rainer Lehmann 3

  4. Slide 4: Continued profitable growth over the past 6 years

    Continued profitable growth over the past 6 years 2011-17 Sales CAGR ~ +13% EBITDA1 margin +5.4pp +9.3% +18.2% €1.4bn 28 0 +16.0% €1.3bn +12.6% 27 0 +8.8% 26 +13.6% 25 0 25.0 25.1 24 0 €733m 23.6 23 0 22 ~ €650m 21 0 21.0 20.5 20 0 20.1 19.7 19 0 18 2011 2012 2013 2014 2015 2016 2017 Sales revenue E

  5. Slide 5: Robust performance in 2017 despite some challenges and unfavorable FX trend

    Robust performance in 2017 despite some challenges and unfavorable FX trend Sartorius Group € in millions unless otherwise specified FY 2016 FY 2017 in % in % cc 1 Sales revenue 1,300.3 1,404.6 +8.0 +9.3 Order intake 1,334.7 1,501.4 +12.5 +13.7 Underlying EBITDA2 325.4 353.2 +8.5 Underlying EBITDA2

  6. Slide 6: BPS: Strong OI momentum supports confidence for 2018

    BPS: Strong OI momentum supports confidence for 2018 Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions +9.7% cc +4.9% cc +3.3% +8.4% +3.6% 1,091.3 1,010. 1,006.5 3 282.4 975.0 273.5 28.0% 28.0% FY 16 FY 17 FY 16 FY 17 FY 16 FY 17  Destocking by a few cu

  7. Slide 7: LPS: Substantial increase in sales and earnings

    LPS: Substantial increase in sales and earnings Order intake Sales revenue Underlying EBITDA & margin € in millions € in millions € in millions +25.8% cc +22.0% cc +36.3% +25.0% +21.2% 410.1 394.2 70.8 328.1 325.3 51.9 18.0% 16.0% FY 16 FY 17 FY 16 FY 17 FY 16 FY 17  All regions and all product cat

  8. Slide 8: Cash flow influenced by recent acquisitions

    Cash flow influenced by recent acquisitions Sartorius Group € in millions FY 2016 FY 2017 in %  Change in financial result due to debt-rel. interest expenses Underlying EBITDA 325.4 353.2 +8.5  Increase in EBITDA and lower tax Extraordinary items -30.7 -35.5 -15.5 payments drive net operating cash

  9. Slide 9: SSB: Strong order intake; earnings influenced by FX headwinds

    SSB: Strong order intake; earnings influenced by FX headwinds Sartorius Stedim Biotech Group € in millions unless otherwise specified FY 2016 FY 2017 in % in % cc 1 Sales revenue 1,051.6 1,081.0 +2.8 +4.1 Order intake 1,080.8 1,162.3 +7.5 +8.8 Underlying EBITDA2 288.7 294.9 +2.2 Underlying EBITDA2 m

  10. Slide 10: SSB: Healthy cash flow performance; influenced by acquisitions

    SSB: Healthy cash flow performance; influenced by acquisitions Sartorius Stedim Biotech Group € in millions  Change in financial result mainly FY 2016 FY 2017 in % due to valuation effects of Underlying EBITDA 288.7 294.9 +2.2 derivatives | fx loans Extraordinary items -18.1 -22.6 -24.8  Net opera

  11. Slide 11: Sartorius Group: Solid financial basis

    Sartorius Group: Solid financial basis Key financial indicators Net debt to underlying EBITDA TAP AllPure BioOutsource IntelliCyt Essen BioScience 1000 Biosystems Technologies Cellca kSep Umetrics 4 Sartorius Group Dec 31, ViroCyt 2017 800 Equity ratio in % 35.1 600 Net debt 895.5 2 € in millions 40

  12. Slide 12: Financing on a long-term, well-diversified basis

    Financing on a long-term, well-diversified basis Maturity profile Current key financing instruments as of Dec 31, 2017, € in millions 200  Syndicated revolving credit facility: €400m due 2021 (>90% undrawn) 180 160  Schuldschein: €582m, due 2018 – 27 140 - 100% fixed rate 120 100  Bilateral long-

  13. Slide 13: Considerable debt and equity financing options to fund growth

    Considerable debt and equity financing options to fund organic and non-organic growth Debt  Max. net debt | underlying EBITDA of 3.25x for the Sartorius Group Equity Sartorius Group  Treasury stock of ~ 3.3m ordinary and preference shares each; current value > €600m  Option to finance external gr

  14. Slide 14: Recap 2020 targets and initiatives

    Recap 2020 targets and initiatives Strategic initiatives 2020 targets Regional  Gain share in North America ~ €2bn 1  Leverage strong market growth in Asia Sales revenue Portfolio  Complementary extensions through alliances ~ 3|4 ~ 1|4 and acquisitions Organic Acquisitions  Own product developme

  15. Slide 15: Regional balance better reflecting end-markets

    Regional balance better reflecting end-markets Sales by region 2011 Sales by region 2017 Global pharmaceutical market ~ €650m CAGR ~ €1.4bn ~ €1.1tn ~+16% Asia | Pacific ~ 22% Asia | Pacific ~ 25% Asia | Pacific ~ 26% ~+15% Americas ~ 25% Americas ~ 32% Americas ~ 51% ~+11% EMEA ~ 53% EMEA ~ 43% EME

  16. Slide 16: Portfolio of both divisions substantially strengthened

    Portfolio of both divisions substantially strengthened Essen BioScience Sales ~€1.4bn IntelliCyt Lab Products & ViroCyt Services Sales ~€733m Biohit Liquid Handling Lab Products & Umetrics Services kSep Sales ~€650m1 Cellca Bioprocess Bioprocess BioOutsource Solutions Solutions AllPure Technologies

  17. Slide 17: Strategic focus on biopharma in both divisions

    Strategic focus on biopharma in both divisions Bioprocess Solutions Division Cell line and Production Molecule development process development upstream & downstream Quality & testing Lab Products & Services Division 17

  18. Slide 18: Infrastructure prepared for further organic growth

    Infrastructure prepared for further organic growth Capex ratio in % Yauco, Puerto Rico 14.9 ~15 Doubling of fluid management 14 11.7 and filter capacities 10.1 12 9.1 10 8.8 7.1 8 6 4 2 20121 20131 2014 2015 2016 2017 2018e2 0 1 Incl. discontinued operation 2 Based on 2018 guidance Goettingen, Germa

  19. Slide 19: On track to deliver on 2020 goals

    On track to deliver on 2020 goals ~+9-12% 2200 +9.3% 35 ~ €2.0bn 2000 +18.2% 34 33 1800 +16.0% 32 1600 +12.6% 31 +8.8% ~ €1.4bn 30 1400 29 +13.6% 28 1200 27 26 1000 ~€733m ~+0.5pp ~26-27 25 25.0 25.1 800 24 23 600 23.6 ~€650m 22 400 21 200 20.5 21.0 20 19.7 20.1 19 0 18 2011 2012 2013 2014 2015 2016

  20. Slide 20: 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 2017-2025 Favorable R&D pipeline; strong Rise of biosimilars advance

  21. Slide 21: The biopharma market is not mature, but maturing

    The biopharma market is not mature, but maturing ... not mature because ... Current Cumulative  Underpenetrated global market investment for Cumulative investment (US$ in millions) every new drug in  Strong flow of innovation 80 development 300  Focus on product features and quality 60  Time-con

  22. Slide 22: Regionally, China will play an important role

    Regionally, China will play an important role 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) ~16% CAGR 2016 - 2021e 350 20% ~16% 300 CAGR 16% 250 2012 - 2016 200 ~25% 12% ~9% 150 8% ~7% 10

  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 Sartorius‘ profitability level in 2-3 years Market envi

  24. Slide 24: After focusing on infrastructure expansion, we will now emphasize process optimization

    After focusing on infrastructure expansion, we will now emphazise process optimization  Customers are particularly looking for more flexibility through shorter lead times  We are investing in accelerating our workflows through systematic digitalization  Main financial impact on COGS and LPS S&D (

  25. Slide 25: More employees, stronger global presence, more young talent

    More employees, stronger global presence, more young talent  Great mix of experience and talent  More than 1,500 customer-facing more than 600 in R&D  Hiring around 1,000 people per year, overproportionally in Asia  Global career opportunities  Attractive place to work: great industry, innovati

  26. Slide 26: Our Sartorius 2025 targets and initiatives

    Our Sartorius 2025 targets and initiatives Strategic initiatives 2025 targets Regional  Participate in strong Chinese market growth ~ €4bn 1  Continue to outgrow the important U.S. market Sales revenue Portfolio  Adding high-impact innovation, e.g. digital tools ~ 2|3 ~ 1|3  Enhance process deve

  27. Slide 27: Our Sartorius 2025 ambition per division

    Our Sartorius 2025 ambition per division SSB | BPS LPS Sartorius Group ~€2.8bn ~€1.2bn ~ €4bn 1 Sales revenue Sales revenue Sales revenue ~30% ~25% ~ 28% EBITDA margin EBITDA margin EBITDA margin 27

  28. Slide 28: Summary

    Summary  Strong drivers for further substantial growth of the global biopharma market  Customer needs shift towards speed, costs, ease of use  Numerous differentiating products in our portfolio  Beachheads to expand addressable market  Infrastructure and capacities prepared for growth  Financi

  29. Slide 29: Sartorius

    : Sartorius

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