Sartorius AG · XETR:SRT
Sartorius — Investor Presentation (July 2018)
40 slides from Sartorius's investor presentation, July 2018
Slide 1: Company Presentation
Company Presentation July 2018 1
Slide 2: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 and 2025
Slide 3: Sartorius in 2017
Sartorius in 2017 Internationally leading Bioprocess and Laboratory Technologies Provider ~32% ~43% ~25% ~ €1.4 bn ~ €209 mn Americas EMEA Asia | Pacific Sales revenue Investments ~ €353 mn 25.1% Earnings1 EBITDA1 margin Sales revenue by region ~ €11.4 bn Market capitalization2 Listed since 1990; Pa
Slide 4: Global Player with around 50 sales and production sites
Global Player with around 50 sales and production sites Asia|Pacific Americas India | Thailand | Singapore | Canada | USA: Ontario | Vietnam | China | Malaysia | Massachusetts, Michigan | South Korea | Japan | Australia New York, New Mexico, North Carolina, Pennsyl- EMEA vania, Colorado | Puerto Net
Slide 5: More than 7,500 employees worldwide
More than 7,500 employees worldwide ~1,175 ~5,175 ~1,150 Americas EMEA Asia|Pacific 2,000 3,000 4,000 5,000 ~7,000 ~7,500 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2013 2014 2015 1995 2000 2007 2012 2016 2017 Figures as of Dec. 31, 2017 5
Slide 6: Our corporate values
Our corporate values SUSTAINABILITY Growing profitably and taking responsibility for all stakeholders OPENNESS Driving change internally and externally ENJOYMENT Working in an energetic and rewarding environment sartorius
Slide 7: Roots of both divisions reach far back
Roots of both divisions reach far back 1870 1927 University mechanician | Company founder Florenz Wilhelm Sartorius founds joint venture with Nobel Sartorius invents short-beam analytical balance laureate and creator of membrane filtration Richard Zsigmondy Weighing Technology Filtration Core of Lab
Slide 8: Sartorius focuses on Biopharma applications
Sartorius focuses on Biopharma applications Bioprocess Solutions Division Cell line and Production Molecule development process development upstream & downstream Quality & testing Lab Products & Services Division 8
Slide 9: Driven by strong fundamentals, Biopharma is a growth market
Driven by strong fundamentals, Biopharma is a growth market 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 bi
Slide 10: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 and 2025
Slide 11: Bioprocess Solutions division snapshot
Bioprocess Solutions division snapshot Division profile High share of recurring revenues Consumables ~ 75% Total solution provider for biomanufacturing Sales revenue EBITDA1 margin ~ €1.010m ~€1.010m 28.0%1 Equipment ~ 25% Dynamic track record Global footprint Sales € in millions Sales 1 margin in %
Slide 12: What are biopharmaceuticals?
What are biopharmaceuticals? Living, genetically modified cells Production Injection | Infusion Advantages Challenges First-time or improved treatment of serious illnesses, R&D and production labor-intensive such as cancer, multiple sclerosis, rheumatism High therapy costs: biologics ~ $50 vs.
Slide 13: Focusing on Biopharma for more than 15 years
Focusing on Biopharma for more than 15 years Bioprocess Solutions Division Cell line and Production Molecule development process development upstream & downstream Quality & testing Lab Products & Services Division 13
Slide 14: Well positioned as a Total Solution Provider across the Biopharma process chain
Well positioned as a Total Solution Provider across the Biopharma process chain Process Development Production Cell Culture Media Fermentation Cell Harvesting Buffer | Preparation Purification Services 14
Slide 15: Portfolio continuously enhanced via strategic acquisitions
Portfolio continuously enhanced via strategic acquisitions 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 in
Slide 16: Pioneer in single-use manufacturing technologies
Pioneer in single-use manufacturing technologies Past Present High initial cost + CAPEX reduction over entire lifecycle Considerable cleaning effort + Lower water and energy consumption Risk of cross-contamination + Higher flexibility 16
Slide 17: Around 75% of recurrent business with single-use products
Around 75% of recurrent business with single-use products Equipment ~ 25 % Single-use ~ €1,010 ~ 75 % mn Figures as of Dec. 31, 2017 17
Slide 18: Leading market positions worldwide
Leading market positions worldwide Filtration TOP 3 Fluid Management #1 Fermentation #1 > 85 % of sales revenue generated from TOP 1-3 positions 18
Slide 19: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 and 2025
Slide 20: Lab Products & Services division snapshot
Lab Products & Services division snapshot Division profile Sales split Consumables & Premium provider of laboratory essentials and services ~ 35% bioanalytics platforms ~ €394m Sales revenue EBITDA1 margin ~€394m 18.0% Lab instruments ~ 65% Accelerating profitable growth Global footprint Sales€ in m
Slide 21: Increasing strategic focus on Biopharma R&D
Increasing strategic focus on Biopharma R&D Bioprocess Solutions Division Cell line and Production Molecule development process development upstream & downstream Quality & testing Lab Products & Services Division 21
Slide 22: Our ambition: Reduce costly trial & error in drug discovery
Our ambition: Reduce costly trial & error in drug discovery A bright idea in € mn Drug discovery 490 4½ years Only 1 out of 10,000 molecules make it Testing & to the market 113 improving 1 year Help researchers to fail faster Clinical trials 640 5 ½ years Reduce time and cost in molecule development
Slide 23: Two strong pillars
Two strong pillars LPS legacy product portfolio New bioanalytics business Lab balances Pipettes Consumables Lab water systems IncuCyte iQue Screener PLUS Premium portfolio of essential lab instruments and consumables Acquisition of U.S. companies: IntelliCyt (mid 2016) and Essen BioScience (earl
Slide 24: These products and services are must-haves in any laboratory
These products and services are must-haves in any laboratory Lab instruments, consumables and services Pipettes and Microbiological Moisture test kits Lab water systems accessories analyzers Balances Services 24
Slide 25: Strong Bioanalytics portfolio for Biopharma R&D applications
Strong Bioanalytics portfolio for Biopharma R&D applications Real-time cell analysis Cell screening Innovative and unique bioanalytical platforms, complement the well-established portfolio for the sample preparation in the lab Excellent fit in LPS Bioanalytic offering; complement areas of applic
Slide 26: Leading market positions worldwide
Leading market positions worldwide Lab Balances #2 Pipettes #4 Lab Filtration #3 Microb. Analysis #2 (membrane based) Average global market share with lab essentials > 10% Leading bioanalytics portfolio 26
Slide 27: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 and 2025
Slide 28: On track to deliver on our 2020 goals that were set in 2011
On track to deliver on our 2020 goals that were set in 2011 ~+12-15% 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 20
Slide 29: 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
Slide 30: 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
Slide 31: Infrastructure prepared for further growth
Infrastructure prepared for further growth Yauco, Puerto Rico: Doubling of fluid Aubagne, France: Capacity extension of management and filter capacities bag production ~15% Capex ratio Goettingen, Germany: Extension of New ERP and extension of global headquarters IT infrastructure 31
Slide 32: 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 Organic Acquisitions
Slide 33: 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 33
Slide 34: Thank you very much for your attention
Thank you very much for your attention 34
Slide 35: Portfolio Bioprocess Solutions
Portfolio Bioprocess Solutions Fermentation & Cell Culture Media Fluid Management 35
Slide 36: Portfolio Bioprocess Solutions
Portfolio Bioprocess Solutions Filtration Purification 36
Slide 37: Portfolio Lab Products & Services
Portfolio Lab Products & Services Lab Balances Pipettes 37
Slide 38: Portfolio Lab Products & Services
Portfolio Lab Products & Services Bioanalytical Technologies Lab Water Systems 38
Slide 39: Portfolio Lab Products & Services
Portfolio Lab Products & Services Lab Filtration Microbiological Quality Control Further Lab Instruments 39
Slide 40: Disclaimer
Disclaimer This presentation contains statements concerning Sartorius Groups’ 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 is b