Sartorius AG · XETR:SRT
Sartorius — Sartorius Stedim Biotech — Investor Presentation (February 2023)
39 slides from Sartorius's investor presentation, February 2023
Slide 1: Simplifying Progress: Sartorius Stedim Biotech Investors Presentation
Simplifying Progress Sartorius Stedim Biotech Investors Presentation February 2023
Slide 2: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects FY 2022 Results | FY 2023 Guidance Appendix 2
Slide 3: Partner of Life Science research and the biopharmaceutical industry
Sartorius Stedim Biotech Group Partner of Life Science research and the biopharmaceutical industry Our mission We empower scientists and engineers to simplify and accelerate progress in Good health and well-being at life science and bioprocessing, enabling the focus of Sartorius Stedim the developme
Slide 4: Sartorius Stedim Biotech at a glance
Sartorius Stedim Biotech Group Sartorius Stedim Biotech at a glance ~€3.49bn Four strong pillars drive above-average growth Sales revenue 2022 Pharma CAGR 4-7% ~20% market Sales CAGR1 2012-2022 Biopharma CAGR ~10% ~35.0% market EBITDA margin2 2022 >25 Single-use Double-digit countries, penetration g
Slide 5: Covering most steps of the biopharmaceutical manufacturing process
Sartorius Stedim Biotech Group Covering most steps of the biopharmaceutical manufacturing process ▪ Differentiated by the range and completeness of the Culture media Seed Scale-up Production portfolio preparation cultivation ▪ Excellent positioning in key single-use technologies UPSTREAM ▪ Internati
Slide 6: Generating revenue throughout the lifecycle of a biopharma drug
Sartorius Stedim Biotech Group Generating revenue throughout the lifecycle of a biopharma drug Preclinical Clinical Commercial Stage (1 year) (4-7 years) (15+ years) Scale Process development Proof of concept - pilot Large ▪ Wide product range of equipment and consumables for all stages (from pre-co
Slide 7: Integrated services and technologies for all types of biopharmaceuticals
Sartorius Stedim Biotech Group Integrated services and technologies for all types of biopharmaceuticals mAbs ▪ ~ 95% of revenue generated with Regenerative bio/pharma customers medicine ▪ Antibodies are most relevant; strong Vaccines position in vaccines as well ▪ SSB provides solutions for the deve
Slide 8: New modalities are coming to the market and offer growth opportunities
Sartorius Stedim Biotech Group New modalities are coming to the market and offer growth opportunities Protein-based therapies Viral-based therapies Advanced therapies 56% 27% 17% ▪ mAbs ▪ Viral vectors for gene ▪ Cell therapy ▪ Bi-/Multi-specifics therapy (e.g., iPSC, MSC) ▪ Bioconjugates | ADCs ▪ V
Slide 9: Attractive market environment offers strong growth opportunities
Sartorius Stedim Biotech Group Attractive market environment offers strong growth opportunities Growing and aging population Biologics are gaining importance2 9 billion people by 20501 World population over age 60 in 2050 Sales share of biologics in 2028 >2bn ~41% ~10% CAGR biopharma market 2022 – 2
Slide 10: Sustainable profitable growth
Sartorius Stedim Biotech Group Sustainable profitable growth +15.1% Sales CAGR ~20% +52.6% 3500 EBITDA1 margin +14.3pp +34.6% ~€3.49bn 55.0 +18.8% 3400 54.0 3300 53.0 3200 52.0 3100 3000 2900 +137% 51.0 50.0 49.0 2800 2700 +4.1% 48.0 47.0 +20.4% 2600 46.0 2500 45.0 2400 44.0 +19.4% 2300 43.0 2200 42
Slide 11: Regionalizing our supply chain and manufacturing; increasing our global capacity
Sartorius Stedim Biotech Group 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 selec
Slide 12: M&A strategy – adding innovation, enhancing focus
Sartorius Stedim Biotech Group M&A strategy – adding innovation, enhancing focus 2016 2017 2019 2020 2021 2022 kSep Umetrics Biological Life Science BIA WaterSep CellGenix Xell Chrom. assets Albumedix Industries assets1 Separations from Novasep 1 Acquired from Danaher Portfolio: Complementary produc
Slide 13: Recent acquisitions make us an even more relevant partner
Sartorius Stedim Biotech Group Recent acquisitions make us an even more relevant partner across the biopharma production workflow ▪ Expanded portfolio in areas where we Downstream processing Cell and gene therapies used to have a limited offering Chromatography systems for smaller Cell culture media
Slide 14: Competitive product offering
Sartorius Stedim Biotech Group Competitive product offering Sartorius Merck | Danaher Thermo Top 3 Players Millipore Fisher All player with approx. Filtration equal market shares 1. Sartorius Fluid 2. Thermo Fisher Management 3. Merck | Millipore 1. Sartorius Fermentation 2. Thermo Fisher 3. Danaher
Slide 15: Pioneer and leader in the growing single-use technology market
Sartorius Stedim Biotech Group Pioneer and leader in the growing single-use technology market Single-use market penetration expected to increase from ~35% to ~75% Single-use products offer advantages over conventional stainless-steel devices ▪ Capex|Opex reduction over entire lifecycle ▪ Reduced ris
Slide 16: Single-use allows manufacturers to mitigate investment risks
Sartorius Stedim Biotech Group Single-use allows manufacturers to mitigate investment risks ▪ Construction of stainless-steel based facilities takes longer and is more complex compared to single-use ▪ Therefore, investment in stainless-steel facilities has to start in early clinical phase II ▪ The c
Slide 17: Limited dependence on individual accounts
Sartorius Stedim Biotech Group Limited dependence on individual accounts Long-term business relationships with leading Limited dependence on individual accounts global (bio-) pharma companies Sales to Top 50 customers in 2022, € in millions 1000 80.0% 70.0% 800 52% 60.0% 43% 48% 600 36% 50.0% 40.0%
Slide 18: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects FY 2022 Results | FY 2023 Guidance Appendix 18
Slide 19: Ambition 2025
Sartorius Stedim Biotech Group Ambition 2025 Sartorius Stedim Biotech Sales €4.4bn ▪ 2025 revenue target does not contain any potential Covid sales revenue previously ~€4.0bn ▪ The margin target includes expenses for reduction of the company`s CO2 emission intensity of around 1% of sales EBITDA >35%
Slide 20: Running around one year ahead of our mid-term plan
Running around one year ahead of our mid-term plan Recent business development vs. mid-term growth trajectory 7000 7000 6500 CAGRs ~20.5%1 6000 6000 5500 ~13% ~34% ▪ Sales revenues in 2021 and 2022 substantially 5000 5000 impacted by direct and indirect Covid effects 4500 4000 4000 ▪ Thus growth 201
Slide 21: U.S. remains most important market; China with highest growth rates
Sartorius Stedim Biotech Group U.S. remains most important market; China with highest growth rates Biologics market growth forecast U.S. CAGR U.S. ~119 ~167 Europe ~9% U.S. Europe ~46 ~58 China ~6% Europe China ~38 ~€250bn ~€365bn ~67 ROW ~15% China ROW ~47 ~72 2020 2024 Source: Evaluate Pharma, Jul
Slide 22: The U.S. and Asia are a focus of the regional growth strategy
Sartorius Stedim Biotech Group The U.S. and Asia are a focus of the regional growth strategy Sales development by region Sales share 2022 | CAGR 2012-2022 Markets ▪ U.S.: Highly innovative market, further potential for market share gains Asia | Pacific ▪ Asia: Strong growth in China, Korea and other
Slide 23: Biosimilars: Strong growth, big opportunities
Sartorius Stedim Biotech Group Biosimilars: Strong growth, big opportunities ▪ Major blockbuster biologics are going off-patent ▪ Time-to-market is key as only the first providers are most likely profitable ▪ Several approvals in Asia and Europe; U.S. at the beginning ▪ For now, relatively small mar
Slide 24: High innovation dynamics in Biopharma
Sartorius Stedim Biotech Group High innovation dynamics in Biopharma Development of new Increased efficiency New tools and Future drug drugs and vaccines possible in the methods required manufacturing is must be accelerated, production of 'classic' e.g. for novel cell and more automated, e.g. throug
Slide 25: Analytical technologies to improve process economics and safety
Sartorius Stedim Biotech Group Analytical technologies to improve process economics and safety ▪ Bioprocess sensors, analyzers and software ▪ Collect, monitor and control quality-critical parameters ▪ Analyze data to obtain a better process understanding ▪ Use knowledge for process development, opti
Slide 26: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects FY 2022 Results | FY 2023 Guidance Appendix 26
Slide 27: Strong double-digit sales growth; margin close to high prior-year level
Sartorius Stedim Biotech Group Strong double-digit sales growth; margin close to high prior-year level Sartorius Stedim Biotech Group FY 2021 FY 2022 in % in % cc1 in millions of € unless otherwise specified Sales revenue 2,887 3,493 +21.0 +15.1 Order intake 3,664 3,315 -9.5 -13.0 Underlying EBITDA2
Slide 28: High growth across all geographies; Americas expand the fastest
Sartorius Stedim Biotech Group High growth across all geographies; Americas expand the fastest Americas EMEA Asia|Pacific Sales by Region € in millions € in millions € in millions in % +21.4% +9.2% +16.7% EMEA Americas ~ 38% ~ 36% 1,278 1,319 1,199 946 896 742 €3,493m Asia|Pacific ~ 26% FY 2021 FY 2
Slide 29: Strong cash flow, high investments, growth-related build-up of working capital
Sartorius Stedim Biotech Group Strong cash flow, high investments, growth-related build-up of working capital Sartorius Stedim Biotech Group FY 2021 FY 2022 in % in millions of € unless otherwise specified Underlying EBITDA 1,033 1,221 +18.2 ▪ Higher inventories to support supply security Extraordin
Slide 30: Very sound balance sheet and financial KPI; debt ratio remains low
Sartorius Stedim Biotech Group Very sound balance sheet and financial KPI; debt ratio remains low Key Financial Indicators Net Debt and Net Debt to Underlying EBITDA 1200 1.8 Dec. 31, Dec. 31, Sartorius Stedim Biotech Group 2021 2022 1000 1.5 800 1.2 Equity ratio in % 43.9 49.6 600 0.9 400 0.6 Net d
Slide 31: Outlook 2023: moderate top-line growth due to demand normalization
Sartorius Stedim Biotech Group Outlook 2023: moderate top-line growth due to demand normalization and low Covid business; strong market fundamentals fully intact Guidance 20231 Sales revenue growth (in %) Underlying EBITDA margin Sartorius Stedim Biotech Group Low single-digit Around prior-year leve
Slide 32: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects 9M 2022 Results | FY 2022 Guidance Appendix 32
Slide 33: Corporate responsibility & further financial information
Sartorius Stedim Biotech Group Corporate responsibility & further financial information To Sartorius, sustainability means operating Please click below for further financial information: responsibly over the long term – with respect to business partners, employees and society as well as to Earnings
Slide 34: Reasons to invest
Sartorius Stedim Biotech Group Reasons to invest 1 2 3 Biopharma market fueled Leading market positions; Global presence by long-term growth mission-critical portfolio; drivers high brand awareness High entry barriers, low price- Diversified revenue base and high Strong sustainability and sensitivit
Slide 35: Share price performance
Sartorius Stedim Biotech Group Share price performance 800% 600% Sartorius (pref.) 400% Sartorius (ord.) Sartorius Stedim Biotech SBF 120 200% MSCI Europe 0% Jan-19 Sep-19 Jan-20 Sep-22 Jan-23 May-19 Mar-20 Sep-20 Jan-21 Sep-21 Jan-22 Mar-19 Jul-19 Nov-19 May-20 May-21 Jul-20 Mar-22 May-22 Nov-20 Ma
Slide 36: A sampling of the product portfolio
Sartorius Stedim Biotech Group A sampling of the product portfolio Filtration Purification Fermentation Fluid management 36
Slide 37: Contacts and financial calendar
Sartorius Stedim Biotech Group Contacts and financial calendar Petra Kirchhoff ▪ February 28, 2023 Head of Corporate Communications & IR Credit Suisse Global HC Conference | London +49.551.308.1686 petra.kirchhoff@sartorius.com ▪ March 1, 2023 Morgan Stanley Virtual Health Tech Conference | Virtual
Slide 38: Disclaimer
Disclaimer This presentation contains statements concerning the future performance of the Sartorius Stedim Biotech Group. 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 actual
Slide 39: Scan or click here to visit our IR website
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