Sartorius AG · XETR:SRT
Sartorius — Sartorius Stedim Biotech — Q1 2022 Earnings Presentation
46 slides from Sartorius's earnings presentation, April 2022
Slide 1: Simplifying Progress: Sartorius Stedim Biotech Investors Presentation Q1 2022
Simplifying Progress Sartorius Stedim Biotech Investors Presentation Q1 2022 Results
Slide 2: 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 3: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects Q1 2022 Results | FY 2022 Guidance Appendix 3
Slide 4: A leading partner of the biopharma industry
Sartorius Stedim Biotech Group A leading partner of the biopharma industry We empower scientists and engineers to simplify and accelerate progress in life science and bioprocessing, enabling the development of new and better therapies and more affordable medicine. The United Nations’ sustainability
Slide 5: Sartorius Stedim Biotech at a glance
Sartorius Stedim Biotech Group Sartorius Stedim Biotech at a glance ~€2.89bn Four strong pillars drive above-average growth Sales revenue 2021 Pharma CAGR 4-7% ~23% market Sales CAGR1 2016-2021 Biopharma CAGR ~10% ~35.8% market EBITDA margin2 2021 >25 Single-use Double-digit countries, penetration g
Slide 6: 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 Fermentation portfolio preparation cultivation ▪ Excellent positioning in key single-use technologies UPSTREAM ▪ Interna
Slide 7: 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 8: 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 9: The market landscape is dynamic across therapy modalities
Sartorius Stedim Biotech Group The market landscape is dynamic across therapy modalities Protein-based therapies Viral-based therapies Advanced therapies 65% 20% 15% ▪ mAbs ▪ Viral vectors for gene therapy ▪ Cell therapy (e.g., iPSC, MSC) ▪ Bi-/Multi-specifics ▪ Virus and viral vector vaccines ▪ Gen
Slide 10: 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 importance 9 billion people by 20501 Share of biologics in pharma end market2 World population over age 60 in 2050 Sales share of biologics in 2026 >2bn
Slide 11: Sales revenue more than doubled over the last 5 years
Sartorius Stedim Biotech Group Sales revenue more than doubled over the last 5 years +52.6% Sales CAGR ~+19% +34.6% 3200 EBITDA1 margin +14.9pp +18.8% ~€2.89bn 40.0 +13.7% 39.0 3000 38.0 +4.1% 2800 37.0 2600 36.0 +20.4% 35.0 35.8 2400 +19.4% 34.0 2200 33.0 +15.9% 2000 32.0 31.0 1800 1600 +10.8% ~€1.
Slide 12: 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 13: M&A strategy – adding innovation, enhancing focus
Sartorius Stedim Biotech Group M&A strategy – adding innovation, enhancing focus 2015 2016 2017 2018 2019 2020 2021 Bio Cellca kSep Umetrics Biological Life Science BIA WaterSep CellGenix Xell Outsource Industries assets1 Separations 1 Acquired from Danaher Portfolio: Complementary products or techn
Slide 14: Recent acquisitions strengthen portfolio…
Sartorius Stedim Biotech Group Recent acquisitions strengthen portfolio… Acquisition of selected life science assets from Danaher Acquisition of BIA Separations ~$275m ~$100m €360mn ~€25m Purchase price Sales revenue in 2019 Purchase price Sales revenue in 2020e + 100 May 2020 + 120 Nov. 2020 Employ
Slide 15: …especially in downstream…
Sartorius Stedim Biotech Group …especially in downstream… Acquisition of WaterSep BioSeparations Agreement to acquire chromatography process equipment division from Novasep Dec. ~$2.5m + 15 ~€37m + 100 2020 Sales revenue Employees Date of Sales revenue Employees in 2020e consolidation in 2020e ▪ Inn
Slide 16: …and cell culture media…
Sartorius Stedim Biotech Group …and cell culture media… Acquisition of CellGenix Acquisition of Xell Jul. Aug. ~€20m + 70 ~€5m + 35 2021 2021 Sales revenue Employees Date of Sales revenue Employees Date of in 2020 consolidation in 2021e consolidation ▪ Cell culture components for advanced therapies
Slide 17: BIA Separations - Bioprocessing innovator, addressing bottlenecks in advanced therapies
Sartorius Stedim Biotech Group BIA Separations - Bioprocessing innovator, addressing bottlenecks in advanced therapies Ajdovščina, Slovenia Portfolio ~120 employees ▪ Pre-packed monolithic columns optimized for purification in advanced therapy processes (e.g. viruses, plasmids, exosomes) Quadrupling
Slide 18: WaterSep BioSeparations – Further broadening our filtration portfolio
Sartorius Stedim Biotech Group WaterSep BioSeparations – Further broadening our filtration portfolio Marlborough, USA Portfolio ~15 employees ▪ Hollow-fiber membrane devices and pre-sterilized assemblies for crossflow filtration applications in upstream and downstream R&D and production of ▪ Address
Slide 19: CellGenix – Extending our cell culture media offering
Sartorius Stedim Biotech Group CellGenix – Extending our cell culture media offering Freiburg, Germany Portfolio ~70 employees ▪ Critical cell culture components for advanced therapies ▪ Portfolio includes cytokines and growth factors, cell culture media, GMP manufacturing and R&D laboratories suppl
Slide 20: Xell – Another building block to establish a strong media business
Sartorius Stedim Biotech Group Xell – Another building block to establish a strong media business Bielefeld, Germany Portfolio ~35 employees ▪ Media and feed supplements for cell cultures; focus on viral vectors that are used in gene therapeutics and vaccines Major state-of-the-art capacity ▪ Analyt
Slide 21: Competitive portfolio across our relevant end-markets
Sartorius Stedim Biotech Group Competitive portfolio across our relevant end-markets SSB Merck | Danaher Thermo Top 3 Players Millipore Pall Cytiva1 Fisher 1. Merck | Millipore Filtration 2. Danaher | Pall 3. Sartorius Stedim Biotech 1. Sartorius Stedim Biotech Fluid 2. Thermo Fisher Management 3. M
Slide 22: 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 23: 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 24: 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 2021, € in millions 800 80.0% 70.0% 600 54% 50% 60.0% 44% 50.0% 36% 400 24% Cum
Slide 25: Our products are widely used in the development and production of biologics against COVID-19
Sartorius Stedim Biotech Group Our products are widely used in the development and production of biologics against COVID-19 We helped our customers to manage extremely challenging development timelines and to 200+ companies ease scaling of vaccine processes all the way to commercialization developin
Slide 26: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects Q1 2022 Results | FY 2022 Guidance Appendix 26
Slide 27: 2025 ambition – Updated profitability targets
Sartorius Stedim Biotech Group 2025 ambition – Updated profitability targets ▪ 2025 revenue target is based on the assumption Sartorius Stedim Biotech Group of no pandemic-related sales (vs. €500m in FY21 and FY22) ▪ The margin target includes expenses for Sales €4bn revenue unchanged reduction of t
Slide 28: 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 28 Mid-term Growth Prospe
Slide 29: The Chinese market is in the next development phase
Sartorius Stedim Biotech Group The Chinese market is in the next development phase Dynamic increase in new Increasingly focusing on innovative medicines biopharma companies Innovation 2.0 300 China’s activity as a percentage of global activity Biologics innovators, indication expansion, technology m
Slide 30: Regional balance better reflecting end-markets
Sartorius Stedim Biotech Group Regional balance better reflecting end-markets ~€477m CAGR ~€2.89bn ~€250bn 20% ~+22% 26% 28% Asia | Pacific 27% ~+20% 33% Americas 50% EMEA 53% ~+18% 41% 22% 2011region Sales by 2019 Sales by region 2019 market Global biopharma 2011 2021 2019 CAGR for continued operat
Slide 31: 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 32: 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 33: 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 34: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects Q1 2022 Results | FY 2022 Guidance Appendix 34
Slide 35: Strong organic growth; further margin increase
Sartorius Stedim Biotech Group Strong organic growth; further margin increase Sartorius Stedim Biotech Group Q1 2021 Q1 2022 in % in % cc1 in millions of € unless otherwise specified Sales revenue 655.2 862.5 +31.6 +27.6 Order intake 1,004.4 949.7 -5.5 -8.6 Underlying EBITDA2 231.6 303.7 31.1 Underl
Slide 36: High double-digit sales growth in all regions led by the Americas
Sartorius Stedim Biotech Group High double-digit sales growth in all regions led by the Americas Americas EMEA Asia|Pacific Sales by Region € in millions € in millions € in millions in % +34.7% +22.9% +26.9% EMEA ~ 40% Americas ~ 34% 348.6 293.7 284.1 €862.5m 204.0 220.2 167.1 Asia|Pacific ~ 26% Q1
Slide 37: Strong cash flow influenced by buildup of inventories
Sartorius Stedim Biotech Group Strong cash flow influenced by buildup of inventories Sartorius Stedim Biotech Group Q1 2021 Q1 2022 in % in millions of € unless otherwise specified Underlying EBITDA 231.6 303.7 +31.1 ▪ Cash flow influenced by higher inventories to Extraordinary items -1.7 -1.8 -3.1
Slide 38: Robust financial indicators; low dynamic debt ratio
Sartorius Stedim Biotech Group Robust financial indicators; low dynamic debt ratio Key Financial Indicators Net Debt and Net Debt to Underlying EBITDA 600 1.8 Dec. 31, Mar. 31, Sartorius Stedim Biotech Group 2021 2022 500 1.5 400 1.2 Equity ratio in % 43.9 48.1 300 0.9 200 0.6 Net debt in millions o
Slide 39: Guidance 2022 confirmed: Double-digit sales growth, sustained high profitability
Sartorius Stedim Biotech Group Guidance 2022 confirmed: Double-digit sales growth, sustained high profitability; uncertainties yet on a further elevated level Guidance 20221 Sales revenue growth Underlying EBITDA margin Sartorius Stedim Biotech Group ~15% - 19% >35% thereof from acquisitions ~2pp ▪
Slide 40: Agenda
Sartorius Stedim Biotech Group Agenda Overview | Strategy Mid-term Growth Prospects Q1 2022 Results | FY 2022 Guidance Appendix 40
Slide 41: Corporate responsibility & further financial information
Sartorius Stedim Biotech Group Corporate responsibility & further financial information To Sartorius Stedim Biotech, sustainability means Please click below for further financial information: operating responsibly over the long term – with respect to business partners, employees and society as well
Slide 42: Sartorius Stedim Biotech shares – an attractive investment
Sartorius Stedim Biotech Group Sartorius Stedim Biotech shares – an attractive investment 1 2 3 Biopharma market fueled Leading market positions Global presence with by long-term growth in key technologies and strong base in growth drivers high brand awareness regions High entry barriers, low price-
Slide 43: Share price performance
Sartorius Stedim Biotech Group Share price performance 1200% 1000% 800% Sartorius (pref.) 600% Sartorius (ord.) Sartorius Stedim Biotech 400% SBF 120 MSCI Europe 200% 0% Jan-18 May-18 Jan-19 May-19 Mar-18 Sep-18 Nov-18 Mar-19 Sep-19 Jan-21 Nov-19 Jan-20 May-21 Mar-20 May-20 Sep-21 Jan-22 Jul-20 Sep-
Slide 44: A sampling of the product portfolio
Sartorius Stedim Biotech Group A sampling of the product portfolio Filtration Purification Fermentation Fluid management 44 Appendix
Slide 45: Financial calendar and contacts
Sartorius Stedim Biotech Group Financial calendar and contacts ▪ July 21, 2022 Petra Kirchhoff Publication First-Half 2022 Results Head of Corporate Communications & IR ▪ October 19, 2022 Phone: +49.551.308.1686 Publication Third-Quarter 2022 Results E-mail: petra.kirchhoff@sartorius.com Sartorius C
Slide 46: Scan or click here to visit our IR website.
Scan or click here to visit our IR website.
Sartorius Stedim Biotech — Q1 2022 Earnings Presentation on 6ix