Sartorius Ag · XETR:SRT
Sartorius — Investor Day (May 2021)
45 slides from Sartorius's investor day presentation, May 20, 2021
Slide 1: Sartorius & Sartorius Stedim Biotech Virtual Capital Markets Day 2021
Sartorius & Sartorius Stedim Biotech Virtual Capital Markets Day 2021 May 20, 2021
Slide 2: Agenda
Agenda 2:00 pm Strategy & Financials | Q&A Speakers: Joachim Kreuzburg, Rainer Lehmann 2:30 pm Deep Dive BPS | Q&A Speakers: René Fáber, Ulrike Lemke 3:10 pm Coffee Break Selection of virtual product demonstrations & tours 3:40 pm Deep Dive LPS | Q&A Speakers: Gerry Mackay, Fiona Coats 4:15 pm Susta
Slide 3: Note
Note This presentation contains statements concerning the future performance of the Sartorius Group and Sartorius Stedim Biotech. 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
Slide 4: Strategy & Financials
Strategy & Financials Joachim Kreuzburg, Rainer Lehmann | CMD 2021
Slide 5: Two divisions with a complementary focus on the life science market
Two divisions with a complementary focus on the life science market Covering the entire biopharma value chain Biopharma the increasingly dominating customer segment Bioprocess Solutions Division ~85% Sales with life science| biopharma customers Molecule Cell line Production upstream 24% development
Slide 6: Attractive market environment offers strong growth opportunities
Attractive market environment offers strong growth opportunities Growing and aging population Biologics are gaining importance 9 billion people by 2050 Share of biologics in pharma end market World population over age 60 in 2050 Sales share of biologics in 2026 >2bn ~35% ~10% CAGR for the biopharma
Slide 7: Strong macro trends and dynamic sector developments require innovative technologies
Strong macro trends and dynamic sector developments require innovative technologies Sector trends Our solutions Process intensification Drug pipeline Maximize overall productivity of the Rise of new modalities; increasing complexity different unit operations More molecules with lower volumes; mo
Slide 8: Adding innovation, also by acquisitions, is an integral part of our strategy
Adding innovation, also by acquisitions, is an integral part of our strategy M&A track record since 2015 Recent acquisitions strengthened positioning in high growth areas and broadened offering in key technologies 11 ~2 per year on Acquisitions average Biological Industries Selected businesses BIA W
Slide 9: Delivered on 2020 targets; 2025 mid-range ambition significantly raised
Delivered on 2020 targets; 2025 mid-range ambition significantly raised Growth strategy SSB BPS LPS Sartorius Group Continued strong organic growth Sales ~€4bn ~€3.8bn ~€1.2bn €5bn targeted revenue Strategic acquisitions; complementary to product portfolios EBITDA Above-average growth in the ~
Slide 10: Attracting the best employees is a key factor to continue our growth path
Attracting the best employees is a key factor to continue our growth path Creation of jobs Broad international footprint Doubling customer-facing staff Total number of employees Employees by nationality Employees in sales | marketing functions 3.126 ~900 additional jobs ~3,500 ~250 additional employ
Slide 11: Balancing the geographical manufacturing process
Balancing the geographical manufacturing process Finland Investment program Kajaani accelerated and expanded USA China CAPEX in millions of €; ratio in % Marlborough Beijing 50 450 45 400 South Korea Germany Songdo 40 350 35 Göttingen Guxhagen 300 238 240 Puerto Rico 226 30 209 Yauco 250 25 14.9 15.
Slide 12: Successful deleveraging over the past quarters; flexible financing options
Successful deleveraging over the past quarters; flexible financing options Net debt and net debt to underlying EBITDA Considerable financing options 2,000 4.0 ~€10bn 1,500 3.0 €1.0bn + ~€2.5bn ~€7.0bn 1,000 2.0 500 1.0 Credit SAG treasury SSB share facilities stock issuance 0 0.0 Q1-Q4 Q1-Q4 Q1-Q4 Q
Slide 13: Bioprocess Solutions
Bioprocess Solutions René Fáber, Ulrike Lemke | CMD 2021
Slide 14: Total solutions provider for the biopharma and life science markets
Total solutions provider for the biopharma and life science markets Tools for life science research and drug discovery and development Bioprocess Solutions Division Molecule development Cell line development Upstream & downstream production Testing | Validation | Quality Control | Services Lab Produ
Slide 15: Snapshot of the Bioprocess Solutions Division
Snapshot of the Bioprocess Solutions Division Track record of dynamic growth Leading in core bioprocessing segments 3000Sales revenue in millions of €; EBITDA margin1 in % 45 2500 +17.6% 40 2000 1,782.6 1500 CAGR 32.3 35 1000 809.2 30 500 26.5 0 25 Separation Fluid Bioreactors 2015 2016 2017 2018 20
Slide 16: Continuously adding innovations
Continuously adding innovations Expanding own cell culture media business Strengthening position in new modalities Broadening our downstream portfolio Life science Chromatography BIA Separations WaterSep Biological businesses from business from BioSeparations Industries Danaher Novasep* *Acquisition
Slide 17: The market landscape is dynamic across therapy modalities
The market landscape is dynamic across therapy modalities Protein-based therapies Viral-based therapies Advanced therapies 65% 20% 15% mAbs Viral vectors for gene therapy Cell therapy (e.g., iPSC, MSC) Bi-/Multi-specifics Virus and viral vector vaccines Gene-modified cell therapy Bioco
Slide 18: Our technologies address customer workflows across modalities
Our technologies address customer workflows across modalities mRNA mAbs & biosimilars Viral vector CAR-T (autologous) Cell bank Donor (patient) T-cell selection and activation Upstream processes Cell expansion In vitro transcription Transfection or infection Transduction (with viral vector) Fluid ma
Slide 19: Helping customers to speed up process development and manufacture more efficiently
Helping customers to speed up process development and manufacture more efficiently Process development Manufacturing Making our customers‘ work life easier by simplifying Continuously lower cost of goods in drug manufacturing products and processes through innovations by addressing: by solutions whi
Slide 20: Process intensification – a key trend for protein-based therapeutics
Process intensification – a key trend for protein-based therapeutics Low CAPEX <50% Cost pressure Low cost of goods sold investment Peak sales have halved; cost of & cost of development development increased 30% since 2010 Faster buildout time <2 years More products, low-volume products, products wi
Slide 21: Increasing digitalization across the value chain
Increasing digitalization across the value chain Bioprocess data Artificial intelligence Production of active Interdisciplinary topic pharmaceutical ingredients Powerful solutions for digitalization and Data analytics and artificial intelligence (AI) automation for life science applications Leadin
Slide 22: Our products are widely used in the development and production of biologics against COVID-19
Our products are widely used in the development and production of biologics against COVID-19 We helped our customers to manage extremely challenging 200+ companies development timelines and to ease scaling of vaccine developing processes all the way to commercialization coronavirus vaccines Educat
Slide 23: The Chinese market is in the next development phase
The Chinese market is in the next development phase Dynamic increase in new Increasingly focusing on innovative medicines biopharma companies Innovation 2.0 300 China’s activity as a percentage of global activity Biologics innovators, indication expansion, technology modification 240 Now Innovation
Slide 24: Regionalizing our supply chain and manufacturing; increasing our global capacity
Regionalizing our supply chain and manufacturing; increasing our global capacity Germany | Göttingen, Guxhagen China and South Korea Puerto Rico and USA Production capacities increasing Capacities will be created Capacities will be ramped up in selected areas for selected areas Separation Instrument
Slide 25: Ambitious mid-range targets up to 2025
Ambitious mid-range targets up to 2025 Initiatives Financial targets Portfolio High-impact innovation to enable stable and economic manufacturing of advanced therapeutics Provide tools for the next phase of bioprocessing Sales (e.g., PAT, process intensification) revenue ~€3.8bn Sales EBITDA L
Slide 26: Lab Products & Services
Lab Products & Services Gerry Mackay, Fiona Coats | CMD 2021
Slide 27: Solution provider for the biopharma and life science market
Solution provider for the biopharma and life science market Tools for life science research and drug discovery & development Lab Products & Services Division Molecule development Cell line development Upstream & downstream production Testing | Validation | Quality Control | Services Bioprocess Solut
Slide 28: We continue the strategic transformation path to expand our position in life science research
We continue the strategic transformation path to expand our position in life science research Pivot to fast growing LSR Solidified LPS BioA Octet LPS strategy market with acquisition of strategy with inorganic acquisition refined with IntelliCyt and organic initiatives closed focus on L2L 2016 2017
Slide 29: Snapshot of the Lab Products & Services Division
Snapshot of the Lab Products & Services Division Premium portfolio of lab instruments, consumables, and software Sales by end-market 2020 Life Science Applied Research sales Research ~55% sales ~45% Division in transition to a new growth and profitability profile 35 00 Sales revenue in millions of €
Slide 30: Since 2019, we have increased our overall addressable market
Since 2019, we have increased our overall addressable market The addition of the Octet platform, and specialty media has increased our 2021 market opportunity and strengthened ~€6.5bn our product offering We now better serve attractive and Overall addressable market growing in growing customer segme
Slide 31: Reduce costly trial & error in drug discovery with optimized cell and molecule development
Reduce costly trial & error in drug discovery with optimized cell and molecule development The challenge Our solutions Explore cellular mechanisms and interactions More biologically relevant insights, faster Find the best-performing lead candidate Optimal clone selection and evaluation and cell line
Slide 32: Molecule development – customer processes and Sartorius solutions
Molecule development – customer processes and Sartorius solutions Target ID | validation Library screening Lead selection & optimization Candidate characterization Tracking cellular mechanisms Screening antibody libraries Selecting the best leads Characterizing antibodies Real-time, live cell analys
Slide 33: Cell line development - customer processes and Sartorius solutions
Cell line development - customer processes and Sartorius solutions Gene cloning and Clone selection/ Cultivation Evaluation Cell banking initial selection confirmatory analytics & media optimization & characterization Transfect cells and Screen more clones Expand cells & Evaluate multiple Create cel
Slide 34: The LPS Division provides critical tools for biologics discovery and development and the global pandemic response
The LPS Division provides critical tools for biologics discovery and development and the global pandemic response Tools for life science research and Helping identify SARS-CoV-2 drug discovery & development infection and advance treatments for COVID-19 Molecule development Cell line development 34 S
Slide 35: LPS solutions contribute to identifying COVID-19 infection and advancing vaccine research and development
LPS solutions contribute to identifying COVID-19 infection and advancing vaccine research and development Patient Environmental Vaccine Virology testing testing research 35 Sartorius & Sartorius Stedim Biotech Virtual Capital Markets Day 2021
Slide 36: Ambitious mid-range targets up to 2025
Ambitious mid-range targets up to 2025 Initiatives Financial targets Portfolio Launch best-in-class products by executing on innovation roadmaps (L2L) for each business area Sales Complementary acquisitions of bioanalytical tools to further increase relevance of our portfolio; strengthen the gro
Slide 37: Sustainability at Sartorius
Sustainability at Sartorius Joachim Kreuzburg, Katharina Tillmanns | CMD 2021
Slide 38: Sustainability is an integral part of our business
Sustainability is an integral part of our business Good health and Our mission well-being at the focus of Sartorius‘ We empower scientists and business activities engineers to simplify and accelerate progress in life science and bioprocessing, enabling the 200+ companies developing development of ne
Slide 39: Single-use products offer key benefits including a better eco-footprint
Single-use products offer key benefits including a better eco-footprint Sustainability aspects of single-use bioprocessing Sterile products enable the Reduced risk of cross-contamination accelerated availability of new therapies and medicines Enable better ecological footprint during usage phase
Slide 40: Three sustainability initiatives with a focus on products and supply chains
Three sustainability initiatives with a focus on products and supply chains Product responsibility Climate protection Supply chain Further reduction in the Significant decrease in Ensuring compliance and environmental footprint of emission intensity contribution of supply chains our products and the
Slide 41: Initiatives to improve the efficiency of materials along the product life cycle
Initiatives to improve the efficiency of materials along the product life cycle Polymers Plastics Products and Usage Eco-design of products & packaging Polyethylene Polymers & packaging Upstream & Reduce absolute amount of plastic Polypropylene additives Bags, filters, downstream Polyamide … tra
Slide 42: Examples – recycling in Aubagne and packaging design
Examples – recycling in Aubagne and packaging design Rethink packaging to recycle plastic and reduce weight and complexity Easy-to-separate cardboard Film mandrels, pallets, roll supports Packaging Film trimming boxes and foam materials Reduction of packaging weight Optimization of logistics d
Slide 43: Sartorius targets annual decrease in carbon intensity by at least ~7.5%
Sartorius targets annual decrease in carbon intensity by at least ~7.5% Global GDP growth1 ~3.5% p.a. Improvement of energy Maximize sourcing of efficiency and reduction of renewable energy by 2030 emissions in own operations Reduction of CO2 emissions2 ~4.2% p.a. Decrease in carbon intensity3 ~7.5%
Slide 44: High relevance of the supply chains’ ESG performance
High relevance of the supply chains’ ESG performance Impact of supply chains Targets Management approach For example, 80% of C02 emissions in Ensure and support improvement of supplier Different lenses, multiple steps, Scope 3 of which purchased goods are ESG performance: reduce environmental involv
Slide 45: Transparency, auditing, and rating
Transparency, auditing, and rating Reporting Supply chains Rating In addition, Sartorius passes more than 350 regular customer audits per year. 45 Sartorius & Sartorius Stedim Biotech Virtual Capital Markets Day 2021