Sartorius AG · XETR:SRT
Sartorius — Non-Deal Roadshow (November 2007)
29 slides from Sartorius's roadshow presentation, Nov 6, 2007
Slide 1: Company Presentation
Platzhalter Bild Company Presentation Road Show November 6 – 8, 2007, Paris | London | Frankfurt Joachim Kreuzburg, CEO
Slide 2: Agenda
Agenda • Key Results 9-Month 2007 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Financial Outlook • Appendix
Slide 3: Update Q3 | 2007
Update Q3 | 2007 • ~ 80% of business performance good to excellent, in some areas, even outstanding • Impact of currency fluctuations damps growth and profit • Biotechnology Division Considerable double-digit growing disposable business Temporarily soft demand from individual pharmaceutical cust
Slide 4: Key Figures 9-Month | 2007
Key Figures 9-Month | 2007* Group Biotechnology Division Mechatronics Division Growth rate Growth rate Growth rate 9-month 9-month 9-month constant fx constant fx constant fx Order intake €479.7mn +9.5% €283.8mn +11.2% €195.9mn +7.2% Sales revenue €469.9mn +5.2% €281.8mn +5.3% €188.2mn +5.2% Underly
Slide 5: Agenda
Agenda • Key Results 9-Month2007 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Financial Outlook • Appendix
Slide 6: Total Solution Provider for Next Generation Biomanufacturing
Total Solution Provider for Next Generation Biomanufacturing • Supplier for validated biopharma processes • Global market leader for single-use bags and cell culture technology • Among global top 3 in filtration • Further unique innovative products in portfolio and pipeline • ~ 75% of sales revenue
Slide 7: Market Position of the Biotechnology Division
Market Position of the Biotechnology Division Filtration & Purification* Sterile Bags* Fermentation* Market Size ~ €600mn ~ €120mn ~ €250mn Market Growth Double-digit Double-digit Single-digit Market Share 22% - 25% ~ 50% 25% - 30% Economies of Scale High Significant Moderate Source: own estimates;
Slide 8: Biotechnology Division Reached New Levels
Biotechnology Division Reached New Levels Pro Forma Figures 9-Month ‘07 Compared to Actual Figures 9-Month ‘06 in €mn 300 • Pro forma underlying EBITA +47.2% +38.4% €35.2mn, + 52.4% above the 250 corresponding year-earlier actual figure of €23.1mn. 200 • Sales revenue for the most 150 283.8 signific
Slide 9: Key Driver 1: The Challenges in Pharma Production are Changing
Key Driver 1: The Challenges in Pharma Production are Changing Share of Drug Approvals in the USA in % 100 • Since 2002, more than 50% of newly approved drugs are biotechnologically produced. 80 • The technology shift in pharma 60 production is happening NOW. 40 • Plus: Revival of the vaccine indust
Slide 10: Key Driver 2: Need for Process Optimization in Biopharma Production
Key Driver 2: Need for Process Optimization in Biopharma Production Input: Output: High capex, Small quantities high production costs, of high-value low flexibility active ingredient The industry needs more efficient, less capex-intense, more flexible production technologies, which facilitate the im
Slide 11: Key Driver 3: Disposables Replace Stainless Steel Equipment
Key Driver 3: Disposables Replace Stainless Steel Equipment + Reduced risk of cross-contamination + Reduced upfront investment + Reduced downtime + No cleaning validation = Reduced life-cycle costs by approx. 15% - 40%* + Greater flexibility *Source: BioPharm Services page 11
Slide 12: Attractive Growth Perspectives for Disposable Systems in Biopharma
Attractive Growth Perspectives for Disposable Systems in Biopharma ~ 6% underlying classic pharma growth + Market penetration by biotech drugs = ~ 12% CAGR for biotech + Paradigm shift to disposables = ~ 18% CAGR for innovative disposables Source: own estimates page 12
Slide 13: Systematic Portfolio Extension by Strategic Alliances
Systematic Portfolio Extension by Strategic Alliances • Lev Tech Inc., USA: Disposable mixing systems • Wave Biotech AG, Switzerland: Disposable bioreactors • Fluorometrix Corp., USA: Disposable sensors for bioreactors • Respironics Inc., USA: Disposable CO2 sensors for bioreactors • Aseptic Technol
Slide 14: Considerable Progress of Integration of Sartorius Biotech and Stedim
Considerable Progress of Integration of Sartorius Biotech and Stedim • Sales & Marketing • Uniformed branding implemented • European S&M teams fully integrated • Focus on integration of US S&M team until Q1 | 2008 • Research & Development • Fully integrated R&D organization and project teams • Proje
Slide 15: Agenda
Agenda • Key Results 9-Month 2007 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Financial Outlook • Appendix
Slide 16: Global Full-Liner of Weighing and Control Technology
Global Full-Liner of Weighing and Control Technology Full range of products for laboratory and industrial applications Complete product pyramid from premium to standard segment Global sales and services structure Production base in Europe, Asia, USA Modular production and supply chain conc
Slide 17: Market Position of the Mechatronics Division
Market Position of the Mechatronics Division Laboratory Business* Industrial Business* Market Size €300mn – 400mn €1.5bn - 2.0bn Market Growth ~ 2% - 3% ~ 5% Market Share ~ 30% ~ 5% Economies of Scale Moderate Significant Source: own estimates; * in our specific market segments page 17
Slide 18: Market Trends
Market Trends • Global customers’ increasing demand for improvement in production efficiency • Shifting of quality control from laboratory to assembly line • Integration of weighing technology and sensor systems into production processes • Growing demand for electronic weighing equipment in emerging
Slide 19: Globalisation as a Growth Driver
Globalisation as a Growth Driver • World-wide production base and global sales and services structure leads to • differentiation from local and regional competition • high product availability in line with customer-oriented solutions • world-wide after sales-service • our position as key-supplier fo
Slide 20: Asia is the Main Growth Driver for the Industrial Business
Asia is the Main Growth Driver for the Industrial Business Strongest growing single market Highest potential for additional market share Thus, highest potential for economies of scale Production and Sales facilities sales facilities page 20
Slide 21: Agenda
Agenda • Key Results 9-Month 2007 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Financial Outlook • Appendix
Slide 22: Forecast 2007
Forecast 2007* Group Biotechnology Division Mechatronics Division > €630mn > €375mn > €255mn Sales revenue 2007e (€650mn-670mn) (€390mn-410mn) (~ €260mn) Underlying 11.0% -11.5% 13.0% – 13.5% 8.5% - 9.0% EBITA margin 2007e (~12.0%) (~14.0%) (> 9.0%) • Especially because of the unfavorable developmen
Slide 23: Outlook 2008 | Outlook up to 2011
Outlook 2008 | Outlook up to 2011 Group Biotechnology Division Mechatronics Division Sales revenue growth > 9.0% > 12.0% > 5.0% 2008e in constant fx Underlying ~ 12.0% ~ 14.0% > 9.0% EBITA margin 2008e Group Biotechnology Division Mechatronics Division CAGR 2007-2011 in 11.0% - 12.0% 14.0% - 15.0% >
Slide 24: Agenda
Agenda • Key Results 9-Month 2007 • Biotechnology Division Platzhalter Bild • Mechatronics Division • Financial Outlook • Appendix
Slide 25: Balance Sheet as of September 30, 2007
Balance Sheet as of September 30, 2007 Assets Equity and Liabilities Non-current assets €485.1mn 64.7% Equity €324.2mn 43.2% Current assets €264.9mn 35.3% Financial debt €220.3mn 29.4% Non-financial debt €205.6mn 27.4% Total €750.1mn 100% Total €750.1mn 100% page 25
Slide 26: Facts about Sartorius Shares – Shareholding structure
Facts about Sartorius Shares – Shareholding structure Ordinary share Preference share 8,9 9 9 Administered by executor 50,1 Family owned 25 Bio-Rad Laboratories Inc. Free float 7 Own shares 91 ISIN Ordinary share: DE0007165607; preference share: DE0007165631 Market segment Prime Standard (technology
Slide 27: Contacts
Contacts Heiko Imöhl Andreas Wiederhold Vice President Group Financing & Investor Relations Treasury & Investor Relations Phone: +49.551.308.4034 Phone: +49.551.308.1668 Fax: +49.551.308.1654 Fax: +49.551.308.1654 E-mail: heiko.imoehl@sartorius.com E-mail: andreas.wiederhold@sartorius.com Sartorius
Slide 28: Disclaimer
Disclaimer This presentation contains statements concerning the Sartorius 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 materialize. This
Slide 29: Thank you very much for your attention.
Platzhalter Bild Thank you very much for your attention. Road Show November 6 – 8, 2007, Paris | London | Frankfurt