Sartorius AG · XETR:SRT
Sartorius — Investor Presentation (April 2017)
44 slides from Sartorius's investor presentation, April 2017
Slide 1: Company Presentation April 2017
Company Presentation April 2017 1
Slide 2: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 05 Appendix
Slide 3: Sartorius in 2016
Sartorius in 2016 Internationally leading Bioprocess and Laboratory Technologies Provider ~34% ~44% ~22% ~ €1.3 bn ~ €152 mn Americas EMEA Asia | Pacific Sales revenue Investments ~ €325 mn 25.0 % Earnings1 EBITDA1 margin Sales revenue by region Listed since 1990; Part of German TecDax Figures as of
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: Mas- Vietnam | China | Malaysia | sachusetts | Michigan | South Korea | Japan | Australia New York, New Mexico, North Carolina, Pennsyl- EMEA vania, Colorado | Puerto Netherland
Slide 5: More than 6,900 Employees Worldwide
More than 6,900 Employees Worldwide ~1,000 ~4,850 ~1,050 Americas EMEA Asia|Pacific 2,000 3,000 4,000 5,000 ~7,000 1996 1997 1998 1999 2001 2002 2003 2004 2005 2006 2008 2009 2010 2011 2013 2014 2016 Discover Sartorius 1995 2000 2007 2012 2015 2017 Figures as of Dec. 31, 2016 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: Business Development Spanning More Than 140 Years
Business Development Spanning More Than 140 Years 1870 Florenz Sartorius founds Mid-90s Positioning as precision machine workshop biopharma supplier 2007 Biotechnology Division merges with 1927 Membrane filter Stedim to Sartorius Stedim Biotech company is founded 2011 New Division Lab Products & Reb
Slide 9: Two Divisions
Two Divisions ~ 75% ~ 25% of sales of sales Bioprocess Solutions Lab Products & Services Innovative single-use prodcts and Premium lab instruments, consumables equipment for the manufacture of biologics and services for R&D, QA and QC Share of Group sales based on figures as of Dec. 31, 2016 9
Slide 10: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 05 Appendix
Slide 11: What Are Biopharmaceuticals?
What Are Biopharmaceuticals? ~20.000 Atoms 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: biolo
Slide 12: Trend towards Manufacturing Single-use Technologies
Trend towards Manufacturing Single-use 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 12
Slide 13: BPS Generates Around 75% of its Business with Single-use Products
BPS Generates Around 75% of its Business with Single-use Products Equipment ~ 25 % Single-use ~ €975mn. ~ 75 % Figures as of Dec. 31, 2016 13
Slide 14: Total Solution Provider across the Biopharma Process Chain
Total Solution Provider across the Biopharma Process Chain Process Development Production Cell Culture Media Fermentation Cell Harvesting Buffer | Preparation Purification Services 14
Slide 15: 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 15
Slide 16: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 05 Appendix
Slide 17: Research Labs Need Intelligent Lab Instruments
Research Labs Need Intelligent Lab Instruments Assistance systems reduce user errors Laboratory data are processed automatically Ergonomic design minimizes physical strain 17
Slide 18: Quality Assurance Labs Accompany every Step of Food and Pharma Production
Quality Assurance Labs Accompany every Step of Food and Pharma Production Sample collection Quality assurance Clearance Documentation 18
Slide 19: These Products and Services are Must-Haves in Any Laboratory
These Products and Services are Must-Haves in Any Laboratory Lab Instruments Consumables Services Balances Syringe Filters Installation Pipettes Microbiological Servicing | Repair Lab Water Systems Test Kits Qualification (IQ/OQ) Moisture Analyzers Pipette Tips Calibration Tr
Slide 20: Lab Portfolio Recently Expanded into Bioanalytics
Lab Portfolio Recently Expanded into Bioanalytics Unique system for real-time live-cell imaging and analysis Acquisition in April 2017 Award-winning technology for cell screening Acquisition in June 2016 Innovative platform for rapid virus quantification Acquisition in July 2016 Innovative and uni
Slide 21: Sales Channels
Expansion of Direct Sales including eBusiness Sales Channels Distributors Pharma | Biotech optimize Direct sales expand Academia eBusiness Cl. Diagnostics | Food & build up Chemicals Beverage
Slide 22: 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 > 10% Significant growth potential, especially in USA and Asia 22
Slide 23: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 05 Appendix
Slide 24: Profitable Growth in Past 10 Years
Profitable Growth in Past 10 Years 1,300.3 40 1,114.8 35 30 887.3 891.2 845.7 25 733.1 25.0 659.3 23.6 622.7 611.6 602.1 20 21.0 521.1 18.6 19.0 19.5 16.7 15 15.3 13.7 14.1 13.1 10 5 0 2 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Sales revenue € in mn Underlying EBITDA1 margin in % 1 Und
Slide 25: Ambitious Growth Targets Up to 2020
Ambitious Growth Targets Up to 2020 Strategic Initiatives 2020 Targets Regional North America: Gain market share ~€2bn. 1 Asia | esp. China: Leverage strong market growth Sales Revenue Portfolio ~3/4 ~1/4 Expansion through alliances and acquisitions Organic Acquisitions Own product developme
Slide 26: Gain Market Share in North America; Leverage Strong Market Growth in Asia
Regional Gain Market Share in North America; Leverage Strong Market Growth in Asia ~ +18% ~ +14% CAGR1 Americas Sales share2 CAGR1 Asia | Pacific Americas Mississauga Bohemia Beijing Seoul Ann Arbor 34% New Oxford Tokyo Suzhou Shanghai Albuquerque ~€1.3 bn. Hanoi Mexico City Hong Kong Yauco Bangkok
Slide 27: Complementary Alliances & Acquisitions Add to Growth
Portfolio Complementary Alliances & Acquisitions Add to Growth Cellca ABER BD BioOutsource BlueSens Lonza Cell Culture Media Metroglas IntelliCyt Südpack Medica Wave Biotech ViroCyt Biohit Liquid Handling Toha Plast NIR Online kSep c-LEcta LevTech Bosch Packaging TAP Biosystems Omnimark ProMetic Cor
Slide 28: The Widest Product Portfolio Across the Biopharma Process Chain
Portfolio The Widest Product Portfolio Across the Biopharma Process Chain Process development Upstream Processing Downstream Processing Media Media Seed Seed Production Cell Removal Cell RemovalCapture | Polishing Virus Viral Preparation Fermentation Preparation Fermentation Fermentation Clarificati
Slide 29: Bioprocess Portfolio Continuously Enhanced
Bioprocess Portfolio Continuously Enhanced Process Development Production Small-scale single-use bioreactors Q4 2013 Cell culture media Q1 2013 Single-use technology for sampling Support of process Q2 2014 development Q3 2015 Single-use Software for bioprocess centrifuges Testing in biosafety and da
Slide 30: Alliances Speed up Innovation
Portfolio Alliances Speed up Innovation Development and supply partnership for novel polymer plastic films Ready-to-use, prefilled media products for microbiological applications Single-use sensors for biomass measurement 30
Slide 31: New Products
Portfolio New Products Syringeless One-step Filters Innovative Operating Concepts Simple, multiplexing sample preparation Fast and reliable results Modular Fermentation System Single-use Clarification System Parallel use of up to eight su bioreactors High flow rates, flexible scalability 31
Slide 32: Strong R&D in Core Technologies
Portfolio Strong R&D in Core Technologies Technologies Membranes, non-wovens Plastics processing: Injection molding, extrusion, welding|gluing Sensors, automation & control Bioanalytics & cell biology Process analytics Mechatronics Applications Biotechnology and biopharma Quality ass
Slide 33: Investments into Infrastructure Foster Profitable Growth
Infrastructure Investments into Infrastructure Foster Profitable Growth Capex ratio in % ~ 12-15 11.7 10.1 8.8 7.7 9.1 Expansion 20121 20131 2014 2015 2016 2017e2 Production facility in Yauco | Puerto Rico Significant expansion of production capacities initiated in 2016; earlier and to a greater e
Slide 34: New Sartorius Campus to Further Boost Innovative Strength and Efficiency
Infrastructure New Sartorius Campus to Further Boost Innovative Strength and Efficiency Consolidation of the two major Goettingen sites into one site New lab instruments building in operation Further expansion of filter and membrane production capacity Building to foster an advanced and open
Slide 35: Agenda
Agenda 01 Sartorius in Brief 02 Bioprocess Solutions 03 Lab Products & Services 04 Sartorius 2020 05 Appendix 35
Slide 36: Expansion in Stages of Sartorius Campus
Infrastructure Expansion in Stages of Sartorius Campus Lab Instruments Membrane Membrane Marketing | Manufacturing R&D Cafeteria production casting machine - under constr. - Bioprocess Solutions Facility Manufacturing College Management Receiving area Main Entrance | Administration - under constr. -
Slide 37: Next Steps
Infrastructure Next Steps Marketing | Cafeteria Main Entrance | Administration Under Construction New main entrance and administration buildings: completion and relocation in Q3 2017 Forum with application labs, offices, cafeteria; expected to be operational by end of 2018 37
Slide 38: Portfolio Bioprocess Solutions
Portfolio Bioprocess Solutions Filtration Purification 38
Slide 39: Portfolio Bioprocess Solutions
Portfolio Bioprocess Solutions Fluid Management Fermentation & Cell Culture Media 39
Slide 40: Portfolio Lab Products & Services
Portfolio Lab Products & Services Lab Balances Pipettes 40
Slide 41: Portfolio Lab Products & Services
Portfolio Lab Products & Services Bioanalytical Technologies Lab Water Systems Further Lab Instruments 41
Slide 42: Portfolio Lab Products & Services
Portfolio Lab Products & Services Lab Filtration Microbiological Quality Control 42
Slide 43: Questions & Answers
Questions & Answers 43
Slide 44: 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