Slide 1: FY 2016 Earnings – On the right track
FY 2016 Earnings On the right track February 15, 2017
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development or
Slide 3: Agenda
Agenda 1. FY 2016 Highlights 2. Financial Review 3. Outlook 4. Q&A 5. Appendix Feb 2017 FY 2016 Earnings 3
Slide 4: Further progress on our journey – Proposed dividend increase of 23.5%
Further progress on our journey – Proposed dividend increase of 23.5% Delivered on profitable Accelerated cash Continued to refine growth generation and returns our business model Sales in line Encouraging progress on Executed on asset portfolio Up 7.2% reported cash generation Disposal of LSR Up 2.
Slide 5: FY 2016 guidance achieved, reflecting changes in asset portfolio
FY 2016 guidance achieved, reflecting recent changes in our asset portfolio as well as continuous effort to drive efficiencies… CRITERIA1 GUIDANCE FY 2016 ACHIEVED 2016 FXN Revenues Approx. EUR 1.4bn (plus/minus EUR 25m) EUR 1,383.1bn FXN Adj. EBITDA Approx. EUR 305m (plus/minus EUR 10m) EUR 311.3m
Slide 6: Whilst continuing to strengthen our business foundations
… Whilst continuing to strengthen our business foundations ASSET BASE now representing 100% of BALANCED PORTFOLIO, greater our core business revenue diversification Centor fully integrated, delivering in line with original business plan Rebalancing of revenues post LSR disposal Sales of LSR division
Slide 7: Ability to deliver solid earnings growth due to robust business model
Ability to deliver solid earnings growth due to our robust business model despite fluctuations in revenues growth Revenues growth ex. LSR1 Adj. EBITDA ex. LSR1 Adj. EPS1,2 ex. LSR % yoy (EUR m) (EUR ) CAGR 2011-2016 6.4% CAGR 2011-2016 8.3% CAGR 2011-2016 11.2% 11.5% 308 4.07 7.2% 207 6.2% 2.39 5.4%
Slide 8: Continued to work on our business fundamentals to support leadership position
Continued to work on our business fundamentals to support leadership position … Some 2016 examples Client service & responsiveness SUSTAINABILITY QUALITY / CSR EXCELLENCE Innovation in products and technologies INDUSTRIAL EFFICIENCY SUPPLY CHAIN & PLANNING Quality excellence Pursuing zero defect str
Slide 9: And to develop innovative product solutions for our customers
… And to develop innovative product solutions for our customers QUALITY & CLIENT FOCUS PRODUCTION FEATURES Gx RTF ClearJect ® Higher quality User safety COP Break resistance Available with all First batch COP Syringe Suitable for standard systems production started sensitive biologics (needles, etc)
Slide 10: Agenda
Agenda 1. FY 2016 Highlights 2. Financial Review 3. Outlook 4. Q&A 5. Appendix Feb 2017 FY 2016 Earnings 10
Slide 11: FY 2016 increase driven by Plastics & Devices; balanced organic growth
FY 2016 increase driven by Plastics & Devices; balanced organic growth profile across both divisions Revenues by division ORGANIC EUR M FY 2016 FY 2015 GROWTH IN % GROWTH1,2 IN % Total Group 1,375.5 1,282.9 7.2 2.9 - Of which P&D 765.4 645.3 18.6 3.0 - Of which PPG 610.6 651.0 -6.2 2.7 1. Organic gr
Slide 12: Strong margin expansion at Group level
Strong margin expansion at Group level, driven by Plastics and Devices and continued productivity improvements Adjusted EBITDA by division FY 2016 FY 2015 EUR M MARGIN IN % EUR M MARGIN IN % Total Group 307.8 22.4 262.6 20.5 - Of which P&D 204.0 26.6 141.6 21.9 - Of which PPG 124.7 20.4 143.7 22.1 F
Slide 13: Working on 3 main levers to protect and build margins
Working on 3 main levers to protect and build margins PRODUCTIVITY AND MIX VOLUME GROWTH EFFICIENCY Mix management Direct impact on operational Increasing productivity leverage Labour Higher value products Increase contribution margin Machines through higher volumes Higher yields Driving manufacturi
Slide 14: FY 2016 shows almost 50% increase in Net Income
FY 2016 shows almost 50% increase in Net Income IN EUR M FY 2016 FY 2015 CHANGE Adjusted EBITDA 307.8 262.6 +45.2 Depreciation -86.91 -84.5 -2.4 Adjusted EBITA 220.9 178.1 +42.8 FY15 Effects from Centor, tubing and portfolio optimization -3.3 24.7 -28.0 One-off income and expenses -0.5 -0.4 -0.1 Tot
Slide 15: Reaching another record Adjusted EPS after non-controlling interests
Reaching another record Adjusted EPS after non-controlling interests in FY 2016 Reconciliation of net income to adjusted EPS after non-controlling interests IN EUR M FY 2016 FY 2015 CHANGE Net income 168.2 112.7 +55.5 Total one-off effects -66.11 -24.3 -41.8 Amortization of fair value adjustments2 3
Slide 16: Encouraging operating cash flow generation
Encouraging operating cash flow generation as a result of increased profitability and completed portfolio adjustments NOV 30, 2016 NOV 30, 2015 CHANGE IN % EUR M EUR M Total assets 2,374.3 2,419.4 -1.9 Equity 763.3 698.1 +9.3 Equity ratio 32.1% 28.9% +320bps Net working capital 200.3 213.7 -6.3 NWC
Slide 17: Net financial debt reduction achieved, leverage target almost reached
Net financial debt reduction achieved, Group’s leverage target almost reached a year ahead Net debt and financial leverage1 Net debt summary Net Debt(2) Leverage (x)(1) IN EUR M FY 2016 FY 2015 878 Drawn portion of RCF 162.7 232.8 900 890 880 870 860 788 4.0 850 840 830 820 810 3.8 800 790 780 770 7
Slide 18: Agenda
Agenda 1. FY 2016 Highlights 2. Financial Review 3. Outlook 4. Q&A 5. Appendix Feb 2017 FY 2016 Earnings 18
Slide 19: Long term growth drivers underpinned by megatrends in pharma and healthcare
Long term growth drivers such as globalization and population increase underpinned by megatrends in pharma and healthcare HEALTHCARE SYSTEMS PHAMERGING GENERICS SELF MEDICATION MARKETS Seizing opportunity to participate in any market trends RISE OF CHRONIC NEW MEDICINES INCREASING REGULATORY DISEASE
Slide 20: Scale underpins leading market position and operating leverage
Scale underpins leading market position and operating leverage MARKET LEADER in primary packaging for injectables / drug delivery devices 15.5 bn #1 pieces sold p.a. in prescription & injectables in the US STRONGLY DIVERSIFIED customer base. OVER Supplying all of Largest customer make up for less th
Slide 21: Targeted market approach
Targeted market approach Large pharma companies Generics producers Small and medium Specialty and Biotech Continuing to Segmenting companies Customer synchronise our Landscape strategy to meet Understanding specific clients QUALITY Zero defects requirements the needs of our Productivity and supply c
Slide 22: Strategic ambitions unchanged, refining our operational framework
Strategic ambitions unchanged, further refining our operational framework to where/how we play Strategic Operational framework ambitions Evolving customer Market Access landscape GROWTH Quality Agility PROFITABILITY INVESTMENT The “right” ATTRACTIVENESS Product quality & Best in class customer M&A i
Slide 23: Guidance framework 2017
Guidance framework 2017 foresees an adj. EPS after non- controlling interests between EUR 4.20 and EUR 4.55 2017 GUIDANCE REPORTED FY 2016 EXPECTED FY 2017 Revenues EUR 1,375.5m ~ EUR 1.43bn (FXN1 - plus/minus EUR 25m) Adj. EBITDA EUR 307.8m ~ EUR 320m (FXN1 - plus/minus EUR 10m) Adj. EPS after non-
Slide 24: Looking into 2017–2018: lifting Adj. EBITDA margin objective to ~23%
Looking into 2017 – 2018: Continued focus on driving profitable growth, lifting Adj. EBITDA margin objective to ~23% in FY 2018 ADDITIONAL OBJECTIVES FOR FY 2018 REPORTED FY 2016 EXPECTED FY 2018 (FXN1) Organic2 sales growth CAGR 2017-2018 2.9% (FY 2016 vs FY 2015) 4% to 5% Adj. EBITDA margin 22.4%
Slide 25: Wrapping up: on the right track to execute on our strategic priorities
Wrapping up: on the right track to execute on our strategic priorities High pace of portfolio changes A leaner and more undertaken in the past years efficient asset base Better geared to support our healthcare and cosmetics clients A clear roadmap to Targeted market approach to further support our c
Slide 26: Backup
Backup Feb 2017 FY 2016 Earnings
Slide 27: Q4 2016: Revenues by division
Q4 2016: Revenues by division ORGANIC EUR M Q4 2016 Q4 2015 GROWTH IN % GROWTH1,2 IN % Total Group 357.6 350.8 2.0 4.7 - Of which P&D 199.4 186.1 7.2 7.2 - Of which PPG 158.3 167.3 -5.3 1.9 1. Organic growth: At const. FX rates, excluding acquisitions, divestments and optimization of business portfo
Slide 28: Q4 2016: Adjusted EBITDA and margin by division
Q4 2016: Adjusted EBITDA and margin by division Q4 2016 Q4 2015 EUR M MARGIN IN % EUR M MARGIN IN % Total Group 82.5 23.1 81.9 23.3 - Of which P&D 55.3 27.7 48.2 25.9 - Of which PPG 31.6 19.9 40.5 24.2 Feb 2017 FY 2016 Earnings 28
Slide 29: Development of net working capital
Development of net working capital NOV 30, 2016 NOV 30, 2015 EUR M EUR M Inventories 155.4 186.4 thereof prepayments made 3.0 6.2 Trade receivables 232.1 219.0 Trade payables 157.0 160.9 Payments received on account 30.2 30.8 of orders Net working capital 200.3 213.7 NWC in % of revenues1 14.6% 14.5
Slide 30: Development of inventories
Development of inventories NOV 30, 2016 NOV 30, 2015 EUR M EUR M Raw materials, consumables and supplies 50.0 50.8 Work in progress 18.4 24.2 Finished goods and merchandise 84.0 105.2 Prepayments made on inventories 3.0 6.2 Inventories 155.4 186.4 Feb 2017 FY 2016 Earnings 30
Slide 31: GXI Key Data
GXI Key Data in EUR per share 2008 2009 2010 2011 2012 2013 2014 2015 2016 Adjusted EPS after non- controlling interests 1.83 1.34 1.95 2.44 2.622 3.08 2.89 3.41 4.22 Cash flow from operations per share 5.26 3.74 5.09 4.13 5.53 4.67 5.04 6.49 5.52 Dividend 0.40 --- 0.50 0.60 0.65 0.70 0.75 0.85 1.05
Slide 32: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions Abbreviations and Definitions Adj. EBITDA Earnings before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses and one-off income and expenses Adjusted EPS Adjuste
Slide 33: Financial calendar and contact details
Financial calendar and contact details February 15, 2017 Annual Report Financial Year 2016 April 6, 2017 Interim Report 1st Quarter 2017 April 26, 2017 Annual General Meeting 2017 July 13, 2017 Interim Report 2nd Quarter 2017 October 11, 2017 Interim Report 3rd Quarter 2017 Name Corporate Investor R
Slide 34: Our Vision
Our Vision Gerresheimer will become the leading global partner for enabling solutions that improve health and well-being. Our success is driven by the passion of our people.