Gerresheimer Ag · XETR:GXI
Gerresheimer — Investor Day (December 2020)
21 slides from Gerresheimer's investor day presentation, Dec 8, 2020
Slide 1: Financial Foundation for our Growth Strategy
Financial Foundation for our Growth Strategy Dr. Bernd Metzner, CFO December 8, 2020
Slide 2: Agenda
Agenda — Presentation of new Guidance — Efficient Capital Allocation at Gerresheimer — Evolution of Reporting — Areas of Further EPS Improvement 12/8/2020 Capital Market Day
Slide 3: Profitable Growth Accelerating
Profitable Growth Accelerating 3 Guidance for FY 2021 and Beyond For Core Business1 (FXN) FY 2021 Mid-term Accelerate Mid-single High-single Revenue Growth digit growth digit growth Further expand ~ 22 to 23% ~ 23% adj. EBITDA Margin Drive adj. EPS growth ≥ 10% p.a. and shareholder value 1. The core
Slide 4: New Guidance Reflects Transformation Process
New Guidance Reflects Transformation Process 4 Deep-dive Into Guidance Current Guidance At Group Focus on Core Business FY 2020 Mid-term level (FXN) Revenue Mid-single Mid-single Growth (in %) digit growth digit growth Speeding up Revenue Growth Adjusted ~21%1 ~ 23% EBITDA Capex ~ 12% 8 to 10% (% of
Slide 5: Advanced Technologies as Potential Game Changer for Gerresheimer
Advanced Technologies as Potential Game Changer 5 for Gerresheimer Cash Flow Profile Advanced Technologies − Gerresheimer Advanced Technologies Expected Cash Flow Profile GAT (GAT) is our innovation hub − Bringing our pump technology to the market − Finding further dedicated and therapy optimized so
Slide 6: Agenda
Agenda — Presentation of new Guidance — Efficient Capital Allocation at Gerresheimer — Evolution of Reporting — Areas of Further EPS Improvement 12/8/2020 Capital Market Day
Slide 7: Rigorous Capital Allocation, 15% ROCE Target
Rigorous Capital Allocation, 15% ROCE Target 7 Investment Guidelines and Principles ROCE1 before tax: 15% − Holistic capital allocation approach across ROCE1 divisions and geographies after tax: ~11% − Mid-term ROCE before tax target 15% − KPIs for Capex decisions: IRR, payback period ~ and NPV − Wi
Slide 8: Accelerator Projects
We are Seizing Unique Business Opportunities 8 Investing Into Value-enhancing Future Growth Investment Scenario during 2021 and 2022 Base Capex 4% Unique Business − In order to benefit Opportunities: from foreseeable Growth Capex 5% Capacity Extension for market dynamics, we Injectables2 Accelerator
Slide 9: Contract Manufacturing: Limited Downside Risk
Contract Manufacturing: Limited Downside Risk 9 Capital Risk Exposure in Contract Manufacturing Contract − Contract Manufacturing investments are Manufacturing ~27% projects with very limited downside risk and only upside return: − Long-term customer retention of at least 4 to 5 years Tangible Asset
Slide 10: Value Creation Through Accretive Growth Projects
Value Creation Through Accretive Growth Projects 10 ROCE, WACC and Growth in Core Business — Various growth opportunities despite capital discipline (15% pre-tax ROCE; ~11% post-tax ROCE) — Economic value creation through (a) higher ROCE-WACC spread and (b) more accretive growth opportunities Return
Slide 11: Agenda
Agenda — Presentation of new Guidance — Efficient Capital Allocation at Gerresheimer — Evolution of Reporting — Areas of Further EPS Improvement 12/8/2020 Capital Market Day
Slide 12: Different Perspective on Gerresheimer
Different Perspective on Gerresheimer 12 Illustrating our Growth Story in the Financial Presentation − Gerresheimer is issuing its quarterly financial statements including a segmentation for the KPIs Revenue Growth and Adj. EBITDA into − P&D − PPG − GAT − Central/Other − To identify the value driver
Slide 13: Core Business Grows High-single Digit
Core Business Grows High-single Digit 13 Core Business: Revenue by Segment Micropumps not included Core business growing at 6% 7% high-single digit rate 14% 13% All segments contributing to the growth trajectory 2020 2025 80% 81% Pharma Cosmetic Other 12/8/2020 Capital Market Day
Slide 14: In Pharma Overproportionate Growth with High-value Solutions
In Pharma Overproportionate Growth with High- 14 value Solutions Core Business: Pharma Revenue by Segment Micropumps not included Pharma business growing 15% at high-single digit rate, 24% with high-value solutions 29% 31% by far out-performing 2025 2020 54% 47% High-value Solutions 1 Standard Packa
Slide 15: Outstanding Growth with Biologics Customers
Outstanding Growth with Biologics Customers 15 Core Business: Pharma Proprietary Revenue by Customer Application Micropumps not included Pharma business growing 13% at high-single digit rate, 17% with Biologic Solutions by far out-performing 2020 2025 87% 83% Biologics Non-Biologics 12/8/2020 Capita
Slide 16: Share Shifting to High-value Cosmetic Packaging
Share Shifting to High-value Cosmetic Packaging 16 Core Business: Cosmetics Revenue by Segment − Focus on growth in high-value cosmetic 44% packaging i.e., decorated glass packaging 51% with high PCR glass share, the “Selective” segment and cosmetic pipettes − Share-shifting from standard cosmetic p
Slide 17: Agenda
Agenda — Presentation of new Guidance — Efficient Capital Allocation at Gerresheimer — Evolution of Reporting — Areas of Further EPS Improvement 12/8/2020 Capital Market Day
Slide 18: Profitable Growth Accelerating
Profitable Growth Accelerating 18 Guidance for FY 2021 and Beyond For Core Business1 (FXN) FY 2021 Mid-term Accelerate Mid-single High-single Revenue Growth digit growth digit growth Further expand ~ 22 to 23% ~ 23% adj. EBITDA Margin Drive adj. EPS growth ≥ 10% p.a. and shareholder value 1. The cor
Slide 19: Longer Useful Life of Assets due to Leaps in Technology and Maintenance Efforts
Longer Useful Life of Assets due to Leaps in 19 Technology and Maintenance Efforts Useful Life of Assets in Core Business — During the past years, technology made significant progress allowing for longer useful life of technical equipment and machinery of e.g., latest generation vial lines and moder
Slide 20: Gradual Reduction of Tax Rate to 25%
Gradual Reduction of Tax Rate to 25% 20 Development of Tax Rate in Core Business -7 ppt — Higher share of group profits will 32% arise from entities with a lower tax 25% rate 2020 Mid-term 12/8/2020 Capital Market Day
Slide 21: Executive Summary
Executive Summary 21 − Guidance for 2021 going forward will be based on the Gerresheimer Core Business, highlighting the high-single digit sales growth mid-term and EPS growing at least of 10% pa starting 2021 − Gerresheimer is seizing unique business opportunities including the expansion of capacit