Sartorius AG · XETR:SRT
Sartorius — Sartorius Stedim Biotech — Investor Presentation (April 2024)
35 slides from Sartorius's investor presentation, April 2024
Slide 1: Simplifying Progress: Sartorius Stedim Biotech Investor Presentation
Simplifying Progress Sartorius Stedim Biotech Investor Presentation April 2024
Slide 2: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects Q1 2024 Results | FY 2024 Guidance Appendix 2
Slide 3: Sartorius Stedim Biotech at a glance
Sartorius Stedim Biotech Group Sartorius Stedim Biotech at a glance ~€2.78bn Sales revenue 2023 ~16% Our mission Sales CAGR1 2013-2023 ~28.3% EBITDA margin2 2023 We empower scientists and engineers to simplify and accelerate progress in life science and bioprocessing, enabling >25 the development of
Slide 4: 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 5: 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 6: 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 7: 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 >9.5 billion people by 20501 World population over age 65 in 2050 Sales share of biologics in 2028 ~1.6bn ~44% ~10% CAGR biopharma market 202
Slide 8: Fundamental biopharma growth drivers intact, additional dynamics from new modalities
Sartorius Stedim Biotech Group Fundamental biopharma growth drivers intact, additional dynamics from the new modalities segment ~30% of biopharma pipeline is focusing on CGT1 Pillars of growth CAGRs 2022–20271 Pharma market ~3-6% ~70% ~30% Biopharma market ~10% Other CGT biologics Biosimilars ~15% C
Slide 9: Strong track record of profitable growth
Sartorius Stedim Biotech Group Strong track record of profitable growth Sales CAGR 2019-23 ~18% 3500 55,0 3400 54,0 3300 53,0 Sales CAGR 2013-19 3200 52,0 3100 51,0 3000 50,0 2900 49,0 2800 2700 ~15% 48,0 47,0 2600 2500 2400 ~€2.78bn 46,0 45,0 44,0 2300 43,0 2200 42,0 2100 41,0 2000 40,0 1900 1800 1
Slide 10: Fueling organic growth; improved resilience by robust regional set-ups
Sartorius Stedim Biotech Group Fueling organic growth; improved resilience by robust regional set-ups Capex Capex composition in millions of €; ratio in % Global Resilience Redundant Capacity 474 Customer proximity Operational Excellence 17,1 Major projects ~X% ~13 Regular expansion ~3% Capitalized
Slide 11: M&A strategy – adding innovation, enhancing focus
Sartorius Stedim Biotech Group M&A strategy – adding innovation, enhancing focus 2 2017 2019 2020 2021 2022 2023 Umetrics Biological Life Science BIA WaterSep CellGenix Xell Chrom. assets Albumedix Polyplus Industries assets1 Separations from Novasep 1 Acquired from Danaher Portfolio: Complementary
Slide 12: Polyplus acquisition a milestone for creating a technology platform for CGT
Sartorius Stedim Biotech Group Polyplus acquisition a milestone for creating a technology platform for applications in the CGT market Biological Albumedix Polyplus Up & downstream solutions CellGenix Xell Industries Cell culture Growth factors Media and Recombinant Transfection Cell line development
Slide 13: 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 14: 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 15: 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 16: 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 2023, € in millions 800 80,0% 70,0% 600 ~49% ~53% 60,0% ~44% 50,0% ~37% 400 40,
Slide 17: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects Q1 2024 Results | FY 2024 Guidance Appendix 17
Slide 18: Midterm outlook to 2028: Expect to continue outgrowing the market
Sartorius Stedim Biotech Group Midterm outlook to 2028: Expect to continue outgrowing the market Sales Revenue CAGR Low to mid-teens range to 2028 thereof ~1/5 from acquisitions Underlying EBITDA above 35 % Margin in 2028 ▪ Margin target includes expenses for reduction of the company’s CO2 emission
Slide 19: 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 20: 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 21: 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 22: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects Q1 2024 Results | FY 2024 Guidance Appendix 22
Slide 23: Expected soft top line development vs. strong PY; robust profitability
Sartorius Stedim Biotech Group Expected soft top line development vs. strong PY; robust profitability Sartorius Stedim Biotech Group Q1 2023 Q1 2024 in % in % cc1 in millions of € unless otherwise specified Sales revenue 726 667 -8.2 -6.7 Order intake 601 676 12.5 13.9 Underlying EBITDA2 220 191 -13
Slide 24: Demand normalization in all regions except China
Sartorius Stedim Biotech Group Demand normalization in all regions except China Americas EMEA Asia|Pacific Sales by region Sales | € in millions Sales | € in millions Sales | € in millions in % -8.6% -3.8% -8.8% EMEA Americas ~ 43% ~ 35% 297 284 258 233 171 149 €667m Q1 2023 Q1 2024 Q1 2023 Q1 2024
Slide 25: Operating cash flow influenced by phasing effects
Sartorius Stedim Biotech Group Operating cash flow influenced by phasing effects Sartorius Stedim Biotech Group Q1 2023 Q1 2024 in % in millions of € unless otherwise specified Underlying EBITDA 220 191 -13.2 ▪ Extraordinary items driven by reorganization and integration measures and corporate proje
Slide 26: Balance sheet reflects recent capital measures; focus on cash generation
Sartorius Stedim Biotech Group Balance sheet reflects recent capital measures; focus on strong cash generation to drive further deleveraging Key financial indicators Net debt and net debt to underlying EBITDA Sartorius Stedim Biotech Dec. 31, Mar. 31, 4.000 6,0 Group 2023 2024 5,0 in millions of € u
Slide 27: Guidance 2024: Profitable growth with moderate first half of the year
Sartorius Stedim Biotech Group Guidance 2024: Profitable growth with moderate first half of the year Guidance 20241 Sales revenue growth Underlying EBITDA margin Sartorius Stedim Biotech Group Mid- to high single-digit percentage range above 30% thereof from acquisitions ~2 pp ▪ Growth momentum proj
Slide 28: Appendix
Sartorius Stedim Biotech Group Appendix 28
Slide 29: 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 30: 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 Ambitious sensitivity and consolidated si
Slide 31: Share price performance
Sartorius Stedim Biotech Group Share price performance 600% 400% Sartorius Vorzugsaktie Sartorius Stammaktie Sartorius Stedim Biotech 200% SBF 120 MSCI Europe 0% Jul-20 Jul-21 Jul-22 Jul-23 Apr-20 Apr-21 Apr-22 Apr-23 Apr-24 Jan-20 Oct-20 Jan-21 Oct-21 Jan-22 Oct-22 Jan-23 Oct-23 Jan-24 ISIN FR00131
Slide 32: A sampling of the product portfolio
Sartorius Stedim Biotech Group A sampling of the product portfolio Filtration Purification Fermentation Fluid management 32
Slide 33: Contacts and Financial calendar
Sartorius Stedim Biotech Group Contacts and Financial calendar ▪ May 16, 2024 Capital Markets Day | Göttingen Petra Kirchhoff Head of Corporate Communications & IR ▪ May 30, 2024 Kepler Cheuvreux ESG Conference | Virtual +49.551.308.1686 petra.kirchhoff@sartorius.com ▪ June 19, 2024 Citi's European
Slide 34: Disclaimer
Sartorius Stedim Biotech Group 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
Slide 35: Scan or click here to visit our IR website.
Scan or click here to visit our IR website.
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