Sartorius AG · XETR:SRT
Sartorius — Sartorius Stedim Biotech — Shareholder Meeting (March 2019)
32 slides from Sartorius's shareholder meeting presentation, Mar 26, 2019
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting Joachim Kreuzburg | Chairman of the Board and CEO | March 26, 2019
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 FY 2018 Results | 2019 Guidance 02 Dividend Proposal 03 Strategic positioning and execution on mid-term plan 04 Explanatory notes to the resolutions 3
Slide 4: Another year of dynamic growth
Another year of dynamic growth Double-digit gains in sales revenue, order intake and earnings Performance slightly ahead of initial expectations; guidance increased substantially at mid-year Development fueled by strong demand across all product categories and geographies Positive outlook for 2019 a
Slide 5: Strong organic development against moderate comps
Strong organic development against moderate comps Order intake Sales revenue EBITDA & margin1) EPS2) € in millions € in millions € in millions in € 1,307.3 2.38 1,162.3 1,212.2 1,081.0 + 16.1 % 1.96 342.4 294.9 + 12.5 % + 12.1 % + 21.5 % 28.2% 27.3% 2017 2018 2017 2018 2017 2018 2017 2018 • Umetrics
Slide 6: Growth in all regions, the Americas with highest momentum
Growth in all regions, the Americas with highest momentum Americas EMEA Asia|Pacific Sales by Regions in € millions in € millions in € millions in % 508.2 422.6 460.7 EMEA 368.8 ~ 42% Americas 281.3 ~ 35% 251.6 €1,212.2m + 16.9 % + 10.7 % + 14.7 % Asia | Pacific ~ 23 % 2017 2018 2017 2018 2017 2018
Slide 7: Extensive investment program reached its peak
Extensive investment program reached its peak CAPEX ratio CAPEX composition 2019 in % 14.6 14 12.6 ~11 12 9.2 10 7.6 ~X% Major projects 8 5.8 6.5 6.2 6 ~3% Regular expansion 4 2 ~2% Cap. R&D 0 ~3% Maintenance 2012 2013 2014 2015 2016 2017 2018 2019 Yauco, Puerto Rico Goettingen, Germany Aubagne, Fra
Slide 8: Financial position remains strong
Financial position remains strong Key Financial Indicators Net Debt to Underlying EBITDA 2 Sartorius Stedim Biotech Dec. 31, Dec. 31, 2017 2018 Equity ratio in % 62.6 66.5 1.0 1.0 1 0.5 0.4 0.4 0.4 Net debt in € millions 127.1 125.7 0.2 Net operating cash flow 0 174.7 227.3 in € millions 2012 2013 2
Slide 9: Considerable number of new jobs created again
Considerable number of new jobs created again France Group 5,637 5,092 865 826 +~11 % +~5 % 2017 2018 2017 2018 • More than 5,600 people; 545 new employees • Attractive jobs: open corporate culture, exciting industry, market-leading technologies, global presence, ambitious goals 9
Slide 10: Balance sheet of the parent company
Balance sheet of the parent company Balance sheet structure in € millions and % as at December 31, 2018 Equity and Assets Liabilities 32.9% 66.8 81.3 150 40.0% 100 50 67.1% 136.3 121.9 60.0% 203.2 203.2 Non-current assets Equity Current assets Total liabilities 10
Slide 11: Shares rise substantially despite volatile stock exchanges
Shares rise substantially despite volatile stock exchanges 200% SSB +44.9% NASDAQ Biotech -4.8% 180% SBF 120 -11.7% CAC Mid & Small -21.6% 160% 140% 120% 100% 80% 60% Jan. 18 Jan. 18 Mrz. 18 Apr. 18 Mai. 18 Mai. 18 Jun. 18 Jul. 18 Aug. 18 Sep. 18 Okt. 18 Nov. 18 Dez. 18 Jan. 19 Feb. 19 Strong star
Slide 12: Outlook for 2019
Outlook for 2019 FY 2018 FY 20191) Sales revenue growth 13.7%1) ~ 7% - 11% slightly more than Underlying EBITDA margin 28.2% + 1pp CAPEX ratio 14.6% ~ 11% 1) In constant currencies • Sales guidance includes dilution of 3pp sales growth due to the modification of the cell culture media agreement with
Slide 13: Agenda: Dividend Proposal
Agenda 01 FY 2018 Results | 2019 Guidance 02 Dividend Proposal 03 Strategic positioning and execution on mid-term plan 04 Explanatory notes to the resolutions 13
Slide 14: Strong dividend increase yet again
Strong dividend increase yet again Earnings per share Dividend per share in € in € 2.38 1.96 0.57 1.92 0.46 1.51 0.42 0.33 0.95 0.82 0.20 0.22 1) 2013 2014 2015 2016 2017 2018 2013 2014 2015 2016 2017 2018 • 10th dividend increase in succession • Total profit distributed would increase by 23.9% from
Slide 15: Agenda: Strategic positioning and execution on mid-term plan
Agenda 01 FY 2018 Results | 2019 Guidance 02 Dividend Proposal 03 Strategic positioning and execution on mid-term plan 04 Explanatory notes to the resolutions 15
Slide 16: Our mission
Our mission We empower scientists and engineers to simplify and accelerate progress in life science and bioprocessing, enabling the development of new and better therapies and more affordable medicine. 16
Slide 17: Covering most steps of the biopharma process chain
Covering most steps of the biopharma process chain Upstream Culture media Seed cultivation Scale-up Fermentation preparation Downstream Final Cryopreservation Sterile Concentration Virus removal Polishing Viral Clarification & filling filtration filtration clearance Centrifugation • Production proce
Slide 18: Strong market fundamentals
Strong market fundamentals Favorable Increasing Rise of Strong R&D pipeline; demographics healthcare spending biosimilars advances in gene and cell therapy 9bn +6.4% ~30% >40% People by 2050; CAGR worldwide CAGR for biosimilar Share of biologics in >2bn 60 yrs for prescription drug sales 2018–2022 p
Slide 19: Leader in the growing single-use technology market
Leader in the growing single-use technology market Past Today High initial investment Lower investment throughout entire life cycle High cleaning effort and expense Lower consumption of water and energy Risk of contamination Higher flexibility 19
Slide 20: Enabling the digitization of bioprocessing
Enabling the digitization of bioprocessing • Digitization of processes are gaining importance in the biopharmaceutical industry • Applications in the entire process chain • Sartorius offers the leading software for modeling and optimizing biopharmaceutical development and production processes 20
Slide 21: Biosimilars: Strong growth, big opportunities
Biosimilars: Strong growth, big opportunities • Major blockbuster biologics are going off Market for biosimilars and other biologics € in billions patent • Time-to-market is key as only the first few +~30% CAGR biosimilar providers are most likely to be ~ 18 profitable • Various approvals in Asia an
Slide 22: Regional focus remains on the U.S. and China
Regional focus remains on the U.S. and China Regional market growth forecast • U.S. is the world's largest market 300 € in billions for biologics CAGR • Biopharma market in China at an 250 early stage, but strong growth +~16% 52 potential 200 China • Tripling of production capacities +~7% 56 in Chin
Slide 23: On track to meet 2020 targets
On track to meet 2020 targets Sales CAGR ~ +14% EBITDA1) margin +6.3pp +13.7% +4.1% 200 +20.4% €1.21bn 33.0 +19.4% 32.0 +15.9% 31.0 +10.8% 000 30.0 +10.3% 29.0 800 28.0 28.2 27.0 600 27.5 27.3 26.0 €477m 26.2 25.0 24.0 400 23.0 23.0 23.5 22.0 200 21.9 21.5 21.0 20.0 0 19.0 2011 2012 2013 2014 2015 2
Slide 24: Ambitious targets for 2025
Ambitious targets for 2025 Strategic initiatives 2025 targets Regional • Participate in strong Chinese market growth ~ €2.8 bn 1 • Continue to outperform the important U.S. market Sales revenue Portfolio • Add high-impact innovation, e.g. digital tools • Enhance process development capabilities • Ex
Slide 25: Infrastructure prepared for further growth
Infrastructure prepared for further growth Significant expansion of production capacities Yauco, Puerto Rico Göttingen, Germany Aubagne, France Ulm, Germany Peking, China Implementation of a wide range of digital projects • Digitization of order processing, marketing and customer relationship manage
Slide 26: We drive forward innovations in bioprocess technology
We drive forward innovations in bioprocess technology Our innovative power rests on three pillars 1. Own product development • Focus on core technologies • Identifying and developing key technologies and application fields of the future 2. Acquisitions • Differentiating acquisition strategy • Clear
Slide 27: Wettbewerbsintensität auf den globalen Märkten steigt
Wettbewerbsintensität auf den globalen Märkten steigt 1. Increasing concentration • Horizontal: Merck KGaA aquires Sigma Aldrich (2014), Danaher acquires Pall (2015), Danaher announces acquisition of GE Biopharma1) • Vertical: Thermo Fisher aquires Patheon (2017) 2. Internationalisation of end marke
Slide 28: Summary
Summary Significant growth expected for 2019 On track to meet 2020 and 2025 targets High focus on innovations Regional focus on USA and China Further job creation 28
Slide 29: Agenda: Explanatory notes to the resolutions
Agenda 01 FY 2018 Results | 2019 Guidance 02 Dividend Proposal 03 Strategic positioning and execution on mid-term plan 04 Explanatory notes to the resolutions 28
Slide 30: Election of new members of the Board (resolution No. 12, 13)
Election of new members of the Board (resolution No. 12, 13) • Specialist in finance, corporate structuring and operations • MBA in Finance & Audit; CPA diploma • Former deputy CEO and Head of Finance of the research institute BIOASTER, previously positions at Ipsogen, Danone, Lafarge and PWC Pascal
Slide 31: Future composition of the Board of Directors
Future composition of the Board of Directors 8 members 43% women (excluding the Director representing employees) 43% independent (excluding the Director representing employees) 1 2 3 1 Upon approval of resolutions No. 9, 10, 11 for renewal of terms 2 Upon approval of resolutions No. 12, 13 for elect
Slide 32: Thank you for your attention
“3 sartorius stedim biotech Thank you for your attention
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