Sartorius AG · XETR:SRT

Sartorius — Sartorius Stedim Biotech — Investor Presentation (June 2015)

33 slides from Sartorius's investor presentation, Jun 17, 2015

  1. Slide 1: Investors' Presentation

    Investors‘ Presentation Munich | Milano, June 17-18, 2015

  2. 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

  3. Slide 3: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  4. Slide 4: Continuing Strong Growth on All Lines

    Continuing Strong Growth on All Lines Sartorius Stedim Biotech 3M 3M Change Change Sales Revenue in € million (unless otherwise specified) 2014 2015 in cc1) in € million Order intake 175.3 224.1 27.9% 17.1% +11.3% cc 204.4 Sales revenue 154.0 204.4 32.8% 21.5% 170.9 2) Underlying EBITDA 33.3 50.8 52

  5. Slide 5: Sales Growth Supported by All Regions

    Sales Growth Supported by All Regions Americas EMEA Asia | Pacific Sales1) by Regions Sales1) in € million Sales1) in € million Sales1) in € million in % 97.5 80.2 EMEA ~ 48% 70.2 44.6 Americas ~ 34% 29.2 36.8 € 204.4mn 3M14 3M15 3M14 3M15 3M14 3M15 + 31.2% + 19.2% + 13.0% Asia | Pacific ~ 18 % Defi

  6. Slide 6: P&L Impacted by Fx-Effects

    P&L Impacted by Fx-Effects Sartorius Stedim Biotech Group 3M 3M Change  Financial result burdened by in € million 2014 2015 derivatives | fx-loans; mainly Underlying EBITDA 33.3 50.8 52.4% non-cash effective  Net operating cash flow Extraordinary items -0.7 -0.4 36.8% influenced by working capital

  7. Slide 7: Financial Position Remained Strong

    Financial Position Remained Strong Key Financial Indicators Net Debt to Underlying EBITDA Sartorius Stedim Biotech Dec. 31 March 31 Group 2014 2015 150 2.0 Equity ratio in % 59.4 59.2 1.5 100 Net debt in € million 87.4 89.1 1.0 50 0.5 Net debt | underlying EBITDA 0.5 0.5 0 0.0 Q1-Q4 Q1-Q4 Q1-Q4 Q1-Q

  8. Slide 8: Guidance 2015 Raised

    Guidance 2015 Raised Previous1) New1) Sales revenue growth ~ 4% - 7% ~ 7% - 10% Underlying EBITDA margin ~ 24.0 - 24.5% ~ 24.5 - 25.0%  Capex ratio ~ 6% - 8% 1) In constant currencies 8

  9. Slide 9: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  10. Slide 10: Strong Track Record of Profitable Growth

    Strong Track Record of Profitable Growth Sales Revenue Earnings in € million EBITDA1) & margin CAGR CAGR ~ 12% 683.5 ~ 17% 588.4 160.5 544.0 135.6 477.3 432.9 117.0 23.5 99.6 23.0 85.9 21.5 20.9 19.8 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 1) Excluding extraordinary items 10

  11. Slide 11: Ambitious Long-Term Targets Supported by Growth Initiatives

    Ambitious Long-Term Targets Supported by Growth Inititatives 2020 ~ €1.5 bn Sales Revenue ~ 28% EBITDA margin1) ~2|3 ~1|3 Organic Acquisitions Strategic Initiatives Regional Growth Portfolio Extension Infrastructure Expansion 1) Excluding extraordinary items 11

  12. Slide 12: Continuous Market Share Gains in the Americas

    Continuous Market Share Gains in the Americas Share of Sales1) Sales Development Footprint CAGR2) Global biotech ~ 18% market ~ 50% 219.6 Bohemia, USA SSB ~ 32% New Oxford, USA Wilmington, USA 130.9 Mexico City, Yauco, Mexico Puerto Rico 2011 2014 Sales Production  Biggest single market for biophar

  13. Slide 13: Growth Initiative Asia: Leverage Strong Market Growth

    Growth Initiative Asia: Leverage Strong Market Growth Share of Sales1) Sales Development Footprint 100% Other CAGR2) Beijing, China Seoul, Korea 75% ~ 16% Shanghai, China Tokyo, Japan Japan 141.8 ~ 21% 50% India 95.1 Bangalore, South India Korea Kuala Lumpur, Singapore, Singapore 25% Malaysia China

  14. Slide 14: Emerging Biosimilars Market Offers Additional Growth Opportunities

    Emerging Biosimilars Market Offers Additional Growth Opportunities Strong biosimilars pipeline driven by patent expiries  Biosimilars market forecast to expand fourfold, reaching $10bn by 2020  > 200 companies have > 700 biosimilars in global R&D pipelines  Production capacities mainly built up i

  15. Slide 15: Portfolio Continuously Enhanced In-Line with Strategy

    Portfolio Continuously Enhanced In-Line with Strategy ~ €684 mn ~ €477 mn Lonza Cell TAP AllPure BioOutsource1) Culture Media Biosystems Technologies FY 2011 Sales Q1 2013 Q4 2013 Q2 2014 FY 2014 Sales 1) Acquisition announced April 17, 2015 15

  16. Slide 16: Extension of SSB's Offering Through Acquisition of BioOutsource

    Extension of SSB‘s Offering Through Acquisition of BioOutsource  BioOutsource provides contract testing services to monitor the quality and safety of biologics  Comprehensive suite of services, particularly for the biosimilars industry  Headquartered in Glasgow; sales revenues of ~ €9 mn; ~ 85 em

  17. Slide 17: Acquisitions Remain Part of Our Strategy

    Acquisitions Remain Part of Our Strategy Acquisition Criteria Portfolio Market Position Complementary products Either among the Top 3 or or technologies unique position Integration Price Management capacity; cultural fit € Fair valuation; reach Sartorius‘ profitability level in 2-3 years Market envi

  18. Slide 18: Continued Capacity Extension to Accommodate Growth

    Continued Capacity Extension to Accommodate Growth Capex Ratio in % of sales revenue 10 9.2 8.1 ~6-8 8 6.5 5.8 6 3.9 4 2 0 2010 2011 2012 2013 2014 2015e1)  Modernize and expand production capacity in UK for SSB’s lab products  Multi-year investment program to expand Goettingen site  Further exte

  19. Slide 19: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  20. Slide 20: Sartorius Stedim Biotech in Brief

    Sartorius Stedim Biotech in Brief 2) Sales Share Sales revenue ~ €684 mn 1) EBITDA ~ €160 mn EMEA ~ 47% EBITDA1) margin 23.5% Americas Asia Employees ~ 3,700 ~ 32% ~ 21% Market capitalization ~ €2.5 bn FY 2014 data 1) Underlying = excluding extraordinary items 2) Acc. to customers’ location; definit

  21. Slide 21: Solution Provider for Biomanufacturing

    Solution Provider for Biomanufacturing  Supplier of key production technologies for the strongly growing biopharma industry  Product quality & safety and supply security are decisive factors due to significant regulatory requirements (validated processes)  Paradigm shift towards single-use soluti

  22. Slide 22: SSB Operates in a Healthy Market Environment

    SSB Operates in a Healthy Market Environment CAGR1) Biotech market 6-8% Market 2008 16% 2013 22% 2018 26% Growth Conventional | Unclassified Biotechnology Overproportionate Growth of Biopharma Market Past Present Technology Trends From Multi-Use to Single-Use 1) Evaluate Pharma: World Preview 2013|2

  23. Slide 23: The Widest Product Portfolio Across the Biopharma Process Chain

    The Widest Product Portfolio Across the Biopharma Process Chain Upstream Bioprocessing Downstream Bioprocessing Media Seed Production Cell Removal | Viral Formulation| Capture Polishing Preparation Fermentation Fermentation Clarification Clearance Final Fill Services Evaluation & Optimization | Engi

  24. Slide 24: Leading Positions in Key Technology Platforms

    Leading Positions in Key Technology Platforms Merck| SSB Pall Thermo GE Top 3 Players Millipore 1. Pall Filtration 2. Merck|Millipore 3. SSB 1. SSB Fluid Management 2. Thermo Fisher 3. Merck|Millipore 1. SSB Fermentation 2. Thermo Fisher 3. GE 1. GE Purification 2. Merck|Millipore 3. Pall 1. Thermo

  25. Slide 25: 100% Direct Business With Limited Dependence on Individual Accounts

    100% Direct Business With Limited Dependence on Individual Accounts Sales to Top 50 customers in 2014, in € million 250 ~50% ~45% 200 ~40% ~35% Cumulative Share ~25% 150 100 50 0 Top 10 11 to 20 21 to 30 31 to 40 41 to 50 Long term business relationships with leading Limited dependence on individual

  26. Slide 26: Agenda

    Agenda 1 Q1 2015 Results | Guidance 2015 2 Growth Prospects Company Overview | 3 Business Model 4 Appendix

  27. Slide 27: Shareholding Structure

    Shareholding Structure Sartorius1) (~ 85 % of voting rights) ~ 26 % Free float (~ 15 % of voting rights) ~ 74 % Total number of shares2) ~ 15.4 million Total number of voting rights2) ~ 27.0 million 1) Sartorius AG and VL Finance, which is 100% controlled by Sartorius AG 2) As of March 2015 27

  28. Slide 28: Strong Worldwide Presence

    Strong Worldwide Presence Rotterdam Herlev Vilvoorde Epsom Royston Glasgow Dublin Goettingen Stonehouse Poznan Guxhagen Tagelswangen Budapest Lourdes Vienna Bohemia Florence Madrid Beijing Wilmington New Oxford Aubagne Seoul Tokyo Mohamdia Mexico City Yauco Hanoi Bangalore Kuala Lumpur Singapore São

  29. Slide 29: Further Driving Differentiation in Upstream Bioprocessing

    Further Driving Differentiation in Upstream Bioprocessing SSB SU bioreactors up 2,000L SU media prep solutions up to > 2,000L Process engineering services Cell culture media SU & stainless steel options Scalable, automated SU multi-parallel bioreactors Sensors, chemometrics, data management Announce

  30. Slide 30: Main Credit Facility Refinanced in 2014

    Main Credit Facility Refinanced in 2014  Attractive credit market conditions used  €250 million syndicated loan terminated ahead of schedule  New syndicated loan agreement entered into by Sartorius AG  Since end of 2014 Sartorius Stedim Biotech uses a credit line of €300 million provided by Sart

  31. Slide 31: Sartorius Stedim Biotech Group Executive Committee

    Sartorius Stedim Biotech Group Executive Committee Joachim Kreuzburg, CEO Volker Niebel Oscar-Werner Reif Reinhard Vogt since 2007 since 2007 since 2009 since 2007 Finance, Human Ressources, Production, Supply Chain Mgmt., Research & Development Marketing, Sales & Services Compliance, Legal Affairs,

  32. Slide 32: Financial Calendar

    Financial Calendar  July 21, 2015 Publication of half-year 2015 figures  October 20, 2015 Publication of nine-month 2015 figures  January 2016 Publication of preliminary full-year 2016 figures  April 5, 2016 Annual General Shareholders‘ Meeting, Aubagne 32

  33. Slide 33: Contacts

    Contacts Petra Kirchhoff Andreas Theisen Vice President Director Corporate Communications & IR Investor Relations Phone: +49.551.308.1686 Phone: +49.551.308.1668 E-mail: E-mail: petra.kirchhoff@sartorius.com andreas.theisen@sartorius.com Sartorius Corporate Administration GmbH Weender Landstrasse 94

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