Gerresheimer Ag · XETR:GXI
Gerresheimer — Investor Day (July 2012)
24 slides from Gerresheimer's investor day presentation, Jul 11, 2012
Slide 1: Capital Markets Day Strategy
Capital Markets Day Strategy July 11+12, 2012 Uwe Röhrhoff, Chief Executive Officer
Slide 2: Disclaimer
Disclaimer This presentation may contain certain forward-looking statements, including assumptions, opinions and views of the Company or cited from third party sources. Various known and unknown risks, uncertainties and other factors could cause the actual results, financial position, development
Slide 3: Gerresheimer: Mid-term targets
Gerresheimer: Mid-term targets Revenues +5% to 6% p.a. (organic) at const. currencies EBITDA margin +20bp to 50 bp p.a. Capex averagely 7% to 9% of revenues 3
Slide 4: Gerresheimer stands to benefit from three major pharma trends
Gerresheimer stands to benefit from three major pharma trends Rise of emerging countries Generics trend New devices & growth in specialty pharma 4
Slide 5: Gerresheimer stands to benefit from three major pharma trends
Gerresheimer stands to benefit from three major pharma trends Rise of emerging countries Generics trend New devices & growth in specialty pharma 5
Slide 6: Emerging markets show fastest growth in pharma spending
Emerging markets show fastest growth in pharma spending Global pharma spending by region In USD bn Growth rates in BRIC countries 5% 1,015 17% 16% 795 13% 12% 13% 38% Emerging markets 27% 10% Japan 11% 19% Europe 24% 2% China India Brazil Russia North 33% 38% America Market 2010 CAGR 2015 Size 54 12
Slide 7: Strong growth drivers in emerging markets
Strong growth drivers in emerging markets Business drivers Population growth and life expectancy on the rise Rising standard of living leads to increased demand for medicines and healthcare coverage Healthcare programs implemented in some countries 7
Slide 8: Global player with strong regional footprint: 16 sites in emerging markets already
Global player with strong regional footprint: 16 sites in emerging markets already Europe USA 22% Revenues 2011: 63% EUR 1,095m Latin America 2% 13% Asia Regional footprint: 45 sites worldwide as of November 30, 2011 Established markets Pharmerging markets Others 8
Slide 9: Our target and strategy for the emerging markets
Our target and strategy for the emerging markets FY 2011 EUR 140m (13% of total revenues) FY 2013 target EUR 200m Strategy Organic growth, driven by primary pharmaceutical packaging plus bolt-on acquisitions Opportunities Expansion into new markets Further expansion of local infrastructu
Slide 10: Gerresheimer stands to benefit from three major pharma trends
Gerresheimer stands to benefit from three major pharma trends Rise of emerging countries Generics trend New devices & growth in specialty pharma 10
Slide 11: Generics spending set to experience significant growth
Generics spending set to experience significant growth Estimated drug spending share by segment in USD bn (Total: USD 1,080bn) (Total: USD 856bn) +82% Generics spending is estimated to grow by more than 80% through 2015 70% of all Generics spending will be outside developed markets *Source: IMS
Slide 12: New generic drugs are boosting the number of standard units sold
New generic drugs are boosting the number of standard units sold Global pharma spending in Sales of primary pharmaceutical bn standard units containers in USD bn 8% 3,500 39 6% 25% 30 8% 2,400 57% Emerging 7% 22% 13% markets Emerging Japan 8% 47% 33% markets 9% 34% Japan Europe 11% 18% 5% Europe 20%
Slide 13: 70% of all Generic spending by 2015 will be outside developed markets
70% of all Generic spending by 2015 will be outside developed markets Split of total and brand spending in emerging markets CAGR Expected market 2010 2011- 2015e size in 2015 120 Total pharmaceutical spending 41 in USD bn +19 – 22% 7 17 Brand spending China in USD bn 23 34 Brazil 7 +10 – 13% 8 28 12
Slide 14: Drivers of the generics market expansion
Drivers of the generics market expansion Business drivers Patent expiries will lead to accelerated spread of price- attractive generics especially in developed markets Increased incentives for the usage of generics in many markets Strong domestic generics players in emerging countries 14
Slide 15: We offer dedicated solutions for generic companies
We offer dedicated solutions for generic companies FY 2011 25%-30% of pharma and healthcare revenues Boost presence in emerging markets Strategy Dedicated value proposition for regional markets Maintain cost leadership Expand device supply to generic customers Opportunities High pote
Slide 16: Gerresheimer stands to benefit from three major pharma trends
Gerresheimer stands to benefit from three major pharma trends Rise of emerging countries Generics trend New devices & growth in specialty pharma 16
Slide 17: Fast-growing devices help treat and avoid most prevalent diseases
Fast-growing devices help treat and avoid most prevalent diseases Diabetes: Exemplary customers: Main causes: Unhealthy lifestyle, obesity Medical devices for treatment: Insulin pens, lancets and lancing devices Projected market growth rate for insulin pens: about +6 to 8% p.a. Respiratory dis
Slide 18: Growth driver diabetes: Unhealthy nutrition habits speed up prevalence
Growth driver diabetes: Unhealthy nutrition habits speed up prevalence Today: > 360m people affected Prevalence Worldwide Diabetes Market Market volume for diabetes 2030e: > 550m people affected medication 2010: USD 35bn CAGR (2011-15e): + 4 to 7% Growing world population Growth drivers Incr
Slide 19: Specialty pharma is growing faster than the average pharma market
Specialty pharma is growing faster than the average pharma market Mature pharma market Definition of “Specialty Pharma” in USD bn Biotech origin Parenteral administration 700 Requires patient monitoring and education 590 Treatment for a chronic condition 8% 31% Disease treatment initiated
Slide 20: Specialty pharma offers good growth prospects for devices to improve support, safety and compliance
Specialty pharma offers good growth prospects for devices to improve support, safety and compliance of patients Characteristics of specialty pharma Opportunities for Gerresheimer Parenteral administration Syringes and vials are the packaging of choice Biotech origin / high price High-quality
Slide 21: Dosage compliance and adherence to therapy can be substantially increased by device innovations
Dosage compliance and adherence to therapy can be substantially increased by device innovations Challenge for pharma industry 30 - 50% of medication not taken as prescribed Patients need to be better supported Devices are a critical value driver Design Improved efficacy Usability Better
Slide 22: Our unique set up makes us profit from growing need for devices
Our unique set up makes us profit from growing need for devices FY 2011 ~35% of pharma and healthcare revenues Mid-term target Mid to high single digit revenue growth Strategy Leverage our unique development, engineering and industrialization capabilities to win new customers Expansion of
Slide 23: Conclusion: Gerresheimer stands to benefit from three major pharma trends
Conclusion: Gerresheimer stands to benefit from three major pharma trends Rise of emerging countries Generics trend New devices & growth in specialty pharma 23
Slide 24: M&A: Expansion of our global footprint set to contribute additional growth opportunities
M&A: Expansion of our global footprint set to contribute additional growth opportunities Diversification Criteria for potential acquisition targets Plastic Regional Diversification Systems Pharmerging countries Proven Expertise in primary pharmaceutical USA industry packaging expertise Expertise