Sartorius AG · XETR:SRT
Sartorius — German Equity Forum Fall 2009
36 slides from Sartorius's conference presentation, Nov 10, 2009
Slide 1: German Equity Forum Fall 2009
Platzhalter Bild German Equity Forum Fall 2009 Frankfurt | Main; November 10, 2009 Dr. Joachim Kreuzburg, CEO
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
Slide 3: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results for 2009 and Outlook • Appendix
Slide 4: Sartorius Runs Two Divisions
Sartorius Runs Two Divisions Biotechnology Division: Mechatronics Division: • Total solution provider for • Global full-liner of weighing equipment biomanufacturing and control technology • Focus on single-use technology • Focus on lab and industrial applications • Market leading position in filtrat
Slide 5: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results for 2009 and Outlook • Appendix
Slide 6: Strong Position in an Attractive Market
Strong Position in an Attractive Market • Total solution provider for next generation biomanufacturing • Focus on single-use products (~75% of sales revenue) in the production phase • Most complete product and service portfolio along the biotech industry’s process chain • Attractive growth perspecti
Slide 7: Pipeline Filled with Biotech Drugs
Pipeline Filled with Biotech Drugs Total Number of Biotech Drugs • Increasing number of biotech drugs in 800 clinical stages; about one-fourth in the last clinical phase 700 600 • Increasing number of approved biotech drugs; since 2002, more than 50% of newly 500 approved drugs have been biotech dru
Slide 8: Monoclonal Antibodies (MAbs) and Vaccines Dominate the Pipeline
Monoclonal Antibodies (MAbs) and Vaccines Dominate the Pipeline Biotech Drugs in Development by Product Category* • In the US, pipeline filled by 633 biotech drugs Vaccines 223 for more than 100 ailments Monoclonal antibodies 192 • All drugs candidates are being tested in Recombinant Recombinant hor
Slide 9: US Market of Therapeutic Monoclonal Antibodies (MAbs)
US Market of Therapeutic Monoclonal Antibodies (MAbs) Sales in Billions of US$ Annual Growth Rate in % • Growth until 2007 fueled by the launch of 6 new products 40 35 35 • Expected CAGR 2008-2014 ~15% 30 30 • Until 2014, 16 new therapeutic MAbs are 25 25 expected to receive FDA approval 20 20 • Mar
Slide 10: World Vaccine Market
World Vaccine Market Sales in Billions of US$ • Expected CAGR 2007-2013 >14% to a market size of approx. US$36bn 35 30 • Rapid growth in the segments of (cell culture based) flu and cancer vaccines 25 • Due to the need for aseptic processes and 20 short lead times, single-use products are 15 benefic
Slide 11: Strong Economic Benefits of Single-use Technologies
Strong Economic Benefits of Single-use Technologies + Downtime reduction, i.e. higher equipment utilization + Cost reduction on upfront investments + Enhanced process performance + Reduced cleaning costs | validation = Reduction of life-cycle production costs by 15% to 40% Additional advantages • Fl
Slide 12: The Most Complete Product Portfolio Along BioPharma's Process Chain
The Most Complete Product Portfolio Along BioPharma´s Process Chain Media Preparation Fermentation Cell Harvest | Buffer Prep. Vol. Reduction Service program: plant survey, optimization, validation, training Capturing | Transfer | Viral Clearance Form & Fill Polishing Storage Service program: plant
Slide 13: Market Overview
Market Overview Filters Bioreactors Fluid Membrane management chromatography Market size ~ €750mn ~ €300mn ~ €200mn ~ €100mn Market growth Double-digit Single to Double-digit Double-digit double-digit Market position Among the top 3 Market leader Market leader Market leader Main competitors Millipor
Slide 14: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results for 2009 and Outlook • Appendix
Slide 15: Today: Global Full-Liner of Weighing Equipment and Control Technology
Today: Global Full-Liner of Weighing Equipment and Control Technology Full range of products for laboratory and industrial applications Complete product pyramid from premium to standard segment Global sales and service structure Production base in Europe, Asia, USA page 15
Slide 16: Restructuring Program in the Mechatronics Division
Restructuring Program in the Mechatronics Division Cost-Cutting Program Extended Cost reduction of more than €30mn p.a. targeted (thereof more than €25mn p.a. of personnel costs) Nine-month results include almost all extraordinary expenses that can be expected in this context Goal: Mechatronic
Slide 17: 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 - These trends play a key role especially in the food industry page 17
Slide 18: 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 19: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results for 2009 and Outlook • Appendix
Slide 20: Order Intake by Division
Order Intake by Division € in mn 454.0 454.8 Currency-Adjusted Growth: +0.2% 450 Group: -2.3% 400 Biotechnology Division: +10.3% 350 Mechatronics Division: -20.6% +12.7% 303.4 300 Biotechnology Division: 269.3 250 Strong double-digit growth of single-use products 200 Additional momentum ge
Slide 21: Sales by Division
Sales by Division € in mn 453.4 Currency-Adjusted Growth: -1.9% 444.7 450 Group: -4.3% 400 Biotechnology Division: +6.7% 350 +9.0% 298.0 Mechatronics Division: -21.1% 300 273.3 250 200 150 -18.5% 100 180.0 146.8 50 0 9-month 2008 9-month 2009 Mechatronics Biotechnology page 21
Slide 22: Sales Revenue by Region – Biotechnology
Sales Revenue by Region – Biotechnology According to customers’ location € in mn Currency-Adjusted Growth: +2.7% Europe: +4.2% 160 North America: +9.6% 140 Asia | Pacific: +6.2% 120 All regions contributed to the growth 100 +21.9% Especially in North America, the Group grew 80 significantl
Slide 23: Sales Revenue by Region – Mechatronics
Sales Revenue by Region – Mechatronics According to customers’ location € in mn Currency-Adjusted Growth: -24.4% Europe: -23.7% 100 North America: -20.0% 90 Asia | Pacific: -14.0% 80 70 Highest slump in demand in Europe 60 50 Asia | Pacific slightly less affected -6.3% 40 -10.9% 30 20 -26.
Slide 24: Underlying EBITA
Underlying EBITA* € in mn +8.3% 43.9 Underlying EBITA Margin*: 40.6 40 Biotechnology: 15.5% (prev. year: 10.7%) 35 • Economies of scale and an improved product mix contributed to the increase in profit 30 +58.9% 46.3 25 Mechatronics: -1.6% (prev. year: 6.3%) 20 29.1 • Cost-cutting measures are showi
Slide 25: Underlying Earnings per Share
Underlying Earnings per Share* in € Slight increase of underlying EPS* 0.80 Underlying net profit after minority interest* totaled €13.9mn (prev. year: €13.7mn) 0.70 0.81 0.81 +1.4% 0.60 0.50 0.80 0.40 0.30 0.20 0.10 0.00 9-month 2008 9-month 2009 * Excluding extraordinary expenses, and the two
Slide 26: Cash Flow Statement
Cash Flow Statement In millions of € 9-month 2009 9-month 2008 Net cash flow from operating activities 104.8 15.3 Net cash flow from investing activities -123.7 -22.3 Change in net debt* +36.3 +30.9 (- means a decrease; + means an increase) Increase of net cash flow from operating activities drive
Slide 27: Balance Sheet as of September 30, 2009
Balance Sheet as of September 30, 2009 Assets Equity and liabilities Non-current assets €591.1mn 71.0% Equity €319.3mn 38.3% Current assets €241.9mn 29.0% Financial debt €304.8mn 36.6% Non-financial debt €209.0mn 25.1% Total €833.1mn 100% Total €833.1mn 100% Gearing: 0.8 Ratio of net debt to und
Slide 28: New Plant Opening in Bangalore, India
New Plant Opening in Bangalore, India At the end of October, Sartorius combined its five decentralized individual locations into a single new plant With an area of 10,000 square meters, the new facility allocates new capacity for the company’s fast-growing Indian business in both Group divisions
Slide 29: Outlook
Outlook For the last three months of the current fiscal year, company management expects the Biotechnology Division’s revenue to increase and its earnings to rise overproportionately relative to the fourth quarter in 2008. The company continues to expect exceptionally difficult market conditions
Slide 30: Thank you very much for your attention.
Platzhalter Bild Thank you very much for your attention. Dr. Joachim Kreuzburg, CEO
Slide 31: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Nine-Month Results for 2009 and Outlook • Appendix
Slide 32: Group Structure
Group Structure Other Sartorius Group Shareholders 100% approx. 71% approx. 29% Sartorius Mechatronics Sartorius Stedim Biotech page 32
Slide 33: 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 34: Global Presence
- Sartorius Global Presence Nicuwegein, Netherlands 2 Tokyo, Japan 7 Hong Kong, China © Hanoi, Vietnam Makati City, Philippines Springfield, MO, USA \ ai Taw Indonesia © Sio Paulo, Brazil rp if eo eer Ne Buenos Aires, Argentina East Oakleigh, Australia @— @ Soles @ Production | Production and Sales
Slide 35: Financial Calendar
Financial Calendar January 20, 2010 Company Presentation at the Cheuvreux German Corporate Conference in Frankfurt | Main February 2010* Publication of preliminary full-year figures 2009 March 9, 2010* Annual press conference in Goettingen, Germany March 11 | 12, 2010* Roadshow April 21, 2
Slide 36: Contacts
Contacts Andreas Wiederhold Henriette Meyer Team Leader Treasury & Investor Relations Treasury & Investor Relations Phone: +49.551.308.1668 Phone: +49.551.308.3232 Fax: +49.551.308.3153 Fax: +49.551.308.3153 E-mail: andreas.wiederhold@sartorius.com E-mail: henriette.meyer@sartorius.com Sartorius Cor