Sartorius AG · XETR:SRT
Sartorius — Non-Deal Roadshow (May 2011)
41 slides from Sartorius's roadshow presentation, May 18, 2011
Slide 1: Roadshow Zurich May 18, 2011
Platzhalter Bild Roadshow Zurich May 18, 2011
Slide 2: Disclaimer
Disclaimer This presentation contains statements concerning the 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
Slide 3: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects 2011 • Financial Performance in Q1 2011 and Outlook for 2011 • Appendix
Slide 4: Sartorius Runs Two Divisions
Sartorius Runs Two Divisions Sartorius AG Other Shareholders 100% approx. 74%* approx. 26%* Sartorius Sartorius Stedim Mechatronics Biotech (SSB) (listed in Paris) * of outstanding shares Page 4
Slide 5: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects 2011 • Financial Performance in Q1 2011 and Outlook for 2011 • Appendix
Slide 6: Total Solution Provider for the Biopharmaceutical Industry
Total Solution Provider for the Biopharmaceutical Industry • We help our customers to produce biopharmaceuticals in short time, reliably and safely, at low costs, and with high flexibility • Most complete product and service portfolio along the biotech industry’s process chain • Focus on single-use
Slide 7: Most Complete Product Portfolio Along Biopharma's Process Chain
Most Complete Product Portfolio Along Biopharma´s Process Chain Media Preparation Fermentation Value Added Services Buffer Preparation Cell Harvesting Purification Page 7
Slide 8: Strong Long Term Trends Drive Further Growth
Strong Long Term Trends Drive Further Growth Global Trends • Aging population in western countries Pharma Market • Hundreds of million + • Average growth 4-7% p.a. additional patients in developing economies + Trends towards Biotech • Diseases of civilization Biopharma Market • MAbs + vaccines domin
Slide 9: Increasing Pressure on Bio-Manufacturing Costs
Increasing Pressure on Bio-Manufacturing Costs* CoS by Category CoS by Unit Operation 12% 1% 3% 3% 3% 4% 7% 6% 48% 9% 25% 2% 44% 15% 8% 3% 7% Capital Charge 20L Seed Bioreactor Huge potential for 200L Seed Bioreactor Materials single-use techno- 2000L Production Bioreactor Consumables logies, especi
Slide 10: Single-use Technologies Will Become the Future Industry Standard
Single-use Technologies Will Become the Future Industry Standard + CAPEX reduction Market Penetration of Single-use Products in Potential Applications + Reduced cleaning costs | validation 100% + Downtime reduction, i.e. higher equipment utilization + Enhanced process performance = Reduction of life
Slide 11: Growth of Single-use Products Drives SSB's Margins Up
Growth of Single-use Products Drives SSB´s Margins Up Underlying EBITA Margin • Incremental gross margins of single-use 16% 16.2% products up to 80% and more 14% • EBITA margin of sales increase 2007 - 2010 15.0% 12% approx. 35% 13.2% 10% 10.9% 8% 6% 4% 2% 0% 2007* 2008 2009 2010 * pro forma Page 11
Slide 12: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects 2011 • Financial Performance in Q1 2011 and Outlook for 2011 • Appendix
Slide 13: Strong Market Position of Lab Instruments Business
Strong Market Position of Lab Instruments Business • Global No. 2 • Complete product pyramid from premium to standard segment • Top technology and high quality products • Global sales and service organization • Broad customer base with focus on pharma | biopharma, food and academia Page 13
Slide 14: Global Full-Liner of Industrial Weighing Equipment
Global Full-Liner of Industrial Weighing Equipment • Broad product portfolio from platform scales to checkweigher and tank & hopper solutions • High product quality and healthy gross margins • But relatively low market share in most geographies Page 14
Slide 15: Mechatronics business strongly recovered in 2010
Mechatronics business strongly recovered in 2010 In millions of € +8.9%* • Strong recovery in both, lab and 225 industry, in all regions 14 15.3 • With significantly reduced breakeven 200 12 point back in robust profitability 175 226.7 10 • EBITA margin of sales increase 150 almost 60% 125 8 201.7 1
Slide 16: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects 2011 • Financial Performance in Q1 2011 and Outlook for 2011 • Appendix
Slide 17: Further Strategic Development of Bioprocess
Further Strategic Development of Bioprocess Biotechnology Division Mechatronics Division Sales revenue of individual segments in % Sales revenue of individual segments in % Bioprocess ~85% Lab Instruments ~60% Industrial Weighing ~40% Biolab ~15% €432.6 mn €226.7 mn • Successful implementation of th
Slide 18: Further Strategic Development of Lab Business
Further Strategic Development of Lab Business Biotechnology Division Mechatronics Division Sales revenue of individual segments in % Sales revenue of individual segments in % Bioprocess ~85% Lab Instruments ~60% Industrial Weighing ~40% Biolab ~15% €432.6 mn €226.7 mn • High brand awareness and exce
Slide 19: Repositioning of Industrial Weighing
Repositioning of Industrial Weighing Biotechnology Division Mechatronics Division Sales revenue of individual segments in % Sales revenue of individual segments in % Bioprocess ~85% Lab Instruments ~60% Industrial Weighing ~40% Biolab ~15% €432.6 mn €226.7 mn • Limited sales synergies between Indust
Slide 20: Shareholders' Meeting Approved Holding Structure (1|2): Today's Status
Shareholders’ Meeting Approved Holding Structure* (1|2): Today’s Status Mechatronics Sartorius AG Goettingen 75 % 100 % 100 % Various Administrative Sartorius Stedim Biotech S.A. Sartorius Mechatronics Service Companies • On April 20, 2011, the Annual General Shareholders’ Meeting approved the furth
Slide 21: Shareholders' Meeting Approved Holding Structure (2|2): Future Structure
Shareholders’ Meeting Approved Holding Structure* (2|2): Future Structure Sartorius AG 75 % 100 % 100 % Various Administrative Sartorius Mechatronics Mechatronics Sartorius Stedim Biotech S.A. Goettingen Service Companies Advantages • Robust dividend capability • Increase in flexibility and transpar
Slide 22: Expansion of Production Sites for Future Growth
Expansion of Production Sites for Future Growth New Membrane Building New Bioreactor Production Facility Goettingen, Germany Guxhagen, Germany • Investments of around €50 million planned for 2011 • Expected increase in the capex ratio from about 4% to approx. 7% • Membrane capacity expansion at head
Slide 23: Consolidation of Single-use Production in North America
Consolidation of Single-use Production in North America • Expansion and optimization of the filter manufacturing plant in Yauco, Puerto Rico • Implementation of bag manufacture • Closure of the Concord production site in California by the end of 2012 Page 23
Slide 24: More Efficient Business Processes and Supportive IT Systems
More Efficient Business Processes and Supportive IT Systems Creation of powerful platforms for further profitable growth • Further improvement of processing time, quality and costs • Global business processes standardized and streamlined in 2011 for future growth and further strategic steps • ERP re
Slide 25: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects 2011 • Financial Performance in Q1 2011 and Outlook for 2011 • Appendix
Slide 26: Sartorius Group's Performance in Q1 2011
Sartorius Group’s Performance in Q1 2011 In millions of €, unless otherwise specified Q1 2011 Q1 2010 Order Intake (Growth) 193.5 (+15.8%) 167.2 Sales Revenue (Growth) 172.1 (+14.4%) 150.4 Underlying* EBITA (Margin) 22.8 (13.3%) 16.4 (10.9%) Underlying** EPS in € 0.64 0.41 Operating Cash Flow 1.2 11
Slide 27: Considerable Increase in Order Intake
Considerable Increase in Order Intake In millions of € +15.8% 193.5 167.2 Currency-Adjusted Growth: 180 • Group: +13.9% 160 • Biotechnology: +15.0% 140 128.9 +16.8% • Mechatronics: +11.6% 120 100 110.4 Biotechnology: 80 • Strong double-digit growth with single-use 60 products +13.8% 40 Mechatronics:
Slide 28: Sales Revenue Growth Reported by Both Divisions
Sales Revenue Growth Reported by Both Divisions In millions of € +14.4% 172.1 150.4 Currency-Adjusted Growth: 160 • Group: +12.6% 140 110.7 • Biotechnology: +8.9% 120 +10.6% • Mechatronics: +19.9% 100 100.1 Biotechnology: 80 Dynamic growth in order intake of single-use products 60 did not yet full
Slide 29: Sales Revenue by Region – Biotechnology
Sales Revenue by Region – Biotechnology According to customers’ location, in millions of € +3.2% Currency-Adjusted Growth: • Europe: +2.9% 50 • North America: +6.4% 40 • Asia | Pacific: +35.1% +7.5% • Other Markets: +14.9% 30 +43.0% • All regions positively contributed to sales 20 revenue growth. +1
Slide 30: Sales Revenue by Region – Mechatronics
Sales Revenue by Region – Mechatronics According to customers’ location, in millions of € +21.6% Currency-Adjusted Growth: • Europe: +21.0% 30 • North America: +10.6% 25 • Asia | Pacific: +20.5% +26.8% • Other Markets: +32.1% 20 15 • Laboratory business with double-digit sales +11.8% growth in all r
Slide 31: Underlying EBITA for the Sartorius Group Increased Significantly
Underlying* EBITA for the Sartorius Group Increased Significantly In millions of € +38.8% 22.8 16.4 Group: 20 • Underlying* EBITA margin: 13.3% (prev. year: 10.9%) +20.0% 15 Biotechnology: 17.5 • Underlying* EBITA margin: 15.8% 10 (prev. year: 14.6%) 14.6 • Main profit driver: economies of scale 5 M
Slide 32: Strong Increase in Underlying Earnings per Share
Strong Increase in Underlying* Earnings per Share In € +58.3% • Underlying* net profit after minority interest: €10.9 mn (prev. year: €6.9 mn) 0,60 0.60 • Unadjusted net profit after minority interest: €10.1 mn (prev. year: €5.1 mn) 0,40 0.40 0.64 0,20 0.20 0.41 0,00 0 Q1 2010 Q1 2011 * Excluding ex
Slide 33: Key Financial Figures
Key Financial Figures March 31, 2011 December 31, 2010 Equity Ratio (in %) 41.4 40.5 Net Debt (in millions of €) 203.6 196.9 Gearing 0.6 0.6 Net Debt to Underlying* EBITDA 1.75 1.79 Interest Coverage 16.0 15.4 • All key financial indicators at a very comfortable level * Excluding extraordinary expen
Slide 34: Outlook for 2011
Outlook for 2011 Sales Growth Underlying EBITA Margin (const. fx) (const. fx) Sartorius Group 6% - 8% Around 14% Biotechnology 6% - 8% Around 17% Mechatronics 6% - 8% Around 8% • Management further forecasts a significantly positive operating cash flow. • Capex ratio expected to be around 7% due to
Slide 35: Agenda
Agenda • Group Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Projects 2011 • Financial Performance in Q1 2011 and Outlook for 2011 • Appendix
Slide 36: Biotech Product Innovations Focus on Single-use Technology (1|2)
Biotech Product Innovations Focus on Single-use Technology (1|2) • High volume disposable bioreactors • Flexible solutions for entire biomanufacturing steps Page 36
Slide 37: Biotech Product Innovations Focus on Single-use Technology (2|2)
Biotech Product Innovations Focus on Single-use Technology (2|2) • Small volume single-use bioreactor with intelligent disposable sensors • New lab water system generation arium® pro • Continous performance improvement of filtration products Page 37
Slide 38: New Mechatronics Products
New Mechatronics Products Further extension of Cubis micro balances portfolio Process analytical tools Technology expansion, e.g. NIR, refractometry Page 38
Slide 39: Strong Global Presence
Strong Global Presence Sales Production | Production and Sales Page 39
Slide 40: Facts about Sartorius Shares – Shareholding Structure
Facts about Sartorius Shares – Shareholding Structure Ordinary share Preference share 7% 91% Administered by executor Family owned 30% Bio-Rad Laboratories Inc. 50% Free float Treasury shares 4% 9% 9% ISIN Ordinary share: DE0007165607; preference share: DE0007165631 Market segment Prime Standard (te
Slide 41: 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