Sartorius AG · XETR:SRT
Sartorius — Investor Presentation (July 2015)
44 slides from Sartorius's investor presentation, July 2015
Slide 1: Company Presentation
Company Presentation July 2015 1
Slide 2: Agenda
Agenda 1 Sartorius in Brief 2 Bioprocess Solutions 3 Lab Products & Services 4 Sartorius 2020 5 Appendix
Slide 3: Sartorius in 2014
Sartorius in 2014 Sales revenue € 891.2mn Earnings1 € 186.6mn Employees 5.600 Investments € 80.9mn Listed since 1990, Sartorius shares Part of German TecDAX Market capitalization2 ~€ 1,9 bn Figures as of December 31, 2014; 1 Underlying EBITDA 2 excluding own shares, as of January 30, 2015 3
Slide 4: Global Player with Around 50 Sales and Production Sites
Global Player with Around 50 Sales and Production Sites Bohemia, New York, USA Aubagne, France Goettingen, Germany Kajaani, Finland Americas EMEA Asia | Pacific ~29% ~49% ~22% Sales share in 2014 Yauco, Puerto Rico Mohamdia, Tunisia Bangalore, India Beijing, China Figures as of December 31, 2014 4
Slide 5: More than 5,600 Employees Worldwide
More than 5,600 Employees Worldwide Employees Employees by Regions growth 2009-2014 EMEA ~4,350 Asia | Pacific ~17% ~70% 2009 ~5,600 ~13% Employees ~+30% Americas ~5,600 2014 5
Slide 6: Core Technology of Lab Division Goes Back to 1870
Core Technology of Lab Division Goes Back to 1870 Florenz Sartorius Analytical balances Sartorius plant around 1930 6
Slide 7: Membrane Filtration a Mainstay of Bioprocess Division Since 1927
Membrane Filtration a Mainstay of Bioprocess Division Since 1927 Richard Zsigmondy Membrane as a filter material Commercialization of the “membrane filter method“ 7
Slide 8: Business Development Spanning More than 140 Years
Business Development Spanning More than 140 Years 2007: Merger of the BT Division with Stedim; 1870: The precision machine 1960s: Subsidiaries Sartorius Stedim Biotech is founded workshop “Feinmechanische are established in Europe 2011: Positioned as a laboratory supplier; Werkstatt” is founded by a
Slide 9: Two Divisions
Two Divisions Sartorius Group Bioprocess Solutions Lab Products & Services 69 % 31 % of sales of sales revenue revenue Innovative single-use products and equipment Premium lab instruments, consumables for the manufacture of biologics and services for R&D, QA and QC 9
Slide 10: Bioprocess Solutions
Bioprocess Solutions Sartorius contributes to health Invisible, yet important 10
Slide 11: What Are Biopharmaceuticals?
What Are Biopharmaceuticals? Small Molecules Since the 19th Century Advantages of Biopharmaceuticals First-time or improved treatment of Chemical serious illnesses, such as cancer, Medications multiple sclerosis, rheumatism 21 Atoms Targets only diseased cells Fewer side effects Fine Chemicals
Slide 12: Our Products Are Used to Manufacture Biopharmaceuticals
Our Products Are Used to Manufacture Biopharmaceuticals We . supply our customers with Customers . use our products to manufacture Filters Bioreactors Monoclonal antibodies Vaccines Bags Blood products ... 12
Slide 13: Trend Towards Single-use Technologies
Trend Towards Single-use Technologies Past Present 13
Slide 14: 75% Recurring Business with Single-use Products
75% Recurring Business with Single-use Products Equipment ~ 25 % ~ € 616 mn Single-use ~ 75 % Figures as of December 31, 2014 14
Slide 15: Single-use Technologies Reduce Production Costs by up to 40%
Single-use Technologies Reduce Production Costs by up to 40% 70-80% CAPEX Faster Higher reduction production flexibility 30-40% 10-20% Market Penetration of Single-use1) No cross- Reduced water Reduced energy contamination consumption consumption Past Present Future 1) Pharmaceutical Technology Euro
Slide 16: The Widest Product Portfolio Across the Biopharma Process Chain
The Widest Product Portfolio Across the Biopharma Process Chain Cell Culture Media Fermentation Cell Harvesting Buffer | Purification Preparation Media Bioreactors for Cell Removal & Buffers Crossflow Systems Prefilled Bags process development Clarification Filters Prefilled Bags & Con
Slide 17: Broad and Stable Customer Base
Broad and Stable Customer Base Sales to Top 50 customers in 2014, in € million 250 ~50% ~55% 200 ~45% ~40% Cumulative Share 150 ~30% 100 50 0 Top 10 11 to 20 21 to 30 31 to 40 41 to 50 Long term business relationships with leading Limited dependence on individual accounts global (bio-)pharma compani
Slide 18: Leading Market Positions Worldwide
Leading Market Positions Worldwide Filtration Fluid Management Fermentation Cell Culture Media Among the #1 #1 #4 TOP 3 Competitive Landscape Pall Thermo Fisher Thermo Fisher Thermo Fisher EMD Millipore EMD Millipore GE Sigma GE 18
Slide 19: Lab Products & Services
Lab Products & Services Precision in the Lab - Fast, Safe, Reliable 19
Slide 20: These Instruments are Must-Haves in Any Laboratory
These Instruments are Must-Haves in Any Laboratory Lab Water Systems Balances Pipettes 20
Slide 21: Instruments Need Consumables and High-Quality Services
Instruments Need Consumables and High-Quality Services 21
Slide 22: Premium Portfolio for R&D and Quality Assurance Labs
Premium Portfolio for R&D and Quality Assurance Labs Lab Instruments Pharma | Biotech Chemicals ~60% Targeting of Revenue >100,000 customers Lab Consumables and Services worldwide Food & Beverage ~ 33% Academia ~40% of Revenue 22
Slide 23: Three-Channel Sales Approach
Three-Channel Sales Approach Lab Distributors Direct Sales eCommerce Streamline and focus Expand Build up 23
Slide 24: Strong Position in Key Categories
Strong Position in Key Categories Lab Balances Pipettes Consumables Lab Water Systems #2 Among the Among the Among the TOP 4 TOP 3 TOP 4 Competitive Landscape Mettler Toledo Eppendorf EMD Millipore EMD Millipore Mettler Toledo Pall Elga Thermo Fisher GE Whatman Thermo Fisher Gi
Slide 25: Agenda
Agenda 1 Sartorius in Brief 2 Bioprocess Solutions 3 Lab Products & Services 4 Sartorius 2020 5 Appendix
Slide 26: Profitable Growth in Past 10 Years
Profitable Growth in Past 10 Years 30 887.3 891.2 845.7 25 733.1 659.3 622.7 611.6 21.0 20 602.1 19.0 19.5 18.6 521.1 467.6 484.3 16.7 15 15.3 13.7 14.1 12.8 13.1 11.7 10 5 0 2 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sales revenue € in mn. Underlying EBITDA margin1 1 Underlying EBITDA
Slide 27: Ambitious Growth Targets Up to 2020
Ambitious Growth Targets Up to 2020 Strategic Initiatives 2020 Targets Regional North America: Gain market share Asia | esp. China: Leverage strong market growth ~€2bn Sales Revenue Portfolio Expansion through alliances and acquisitions ~2/3 ~1/3 Organic Acquisitions Own product development
Slide 28: Gain Market Share in North America; Leverage Strong Market Growth in Asia
Regional Gain Market Share in North America; Leverage Strong Market Growth in Asia Sales share Share of Sales Americas Share of Sales Asia | Pacific Americas 2014 2014 29% CAGR CAGR €891 mn 2013 ~16% 2013 ~14% 22% Asia | Pacific In constant currencies In constant currencies Figures for continued ope
Slide 29: Complementary Alliances & Acquisitions Add to Growth
Portfolio Complementary Alliances & Acquisitions Add to Growth Umetrics ABER G-Con Cellca BlueSens BD Lonza Dylog Cell Culture Media Metroglas Südpack Medica Schmidt + Haentsch BioOutsource Wave Biotech ATMI Life Sciences NIR Online Biohit Liquid Handling c-LEcta LevTech Toha Plast Bosch Packaging T
Slide 30: Further Expansion of Bioprocess Portfolio
Portfolio Further Expansion of Bioprocess Portfolio Cell Culture Media BioOutsource Q1 2013 Q2 2015 Excellent fit with fermenter and Contract testing in the areas bag portfolio of biosafety and bioanalytics Close customer relations in the Can be used from drug early phase of process developm
Slide 31: Alliances Speed up Innovation
Portfolio Alliances Speed up Innovation Single-use sensors for biomass measurement Sensors for oxygen and carbon dioxide measurement Ready-to-use, prefilled media products for microbiological applications Single-use sensors for flow rate measurement 31
Slide 32: Strong R&D in Core Technologies
Portfolio Strong R&D in Core Technologies New Sterilizing-Grade Filter Cartridge Three New Lab Balance Series Longer life cycle, so fewer filters needed User-friendly Faster filtration operating design Higher product yields and performance Modular manufacture in semi- automated, scalable
Slide 33: Continued Capacity Extension
Infrastructure Continued Capacity Extension Kajaani, Finland Extension of pipette tips production Bohemia, NY, Stonehouse, USA UK Guxhagen, Lab for product New production Germany Beijing, tests, demon- for lab consumables Extension fermenter and China strations and biotech equipment production New c
Slide 34: Expansion of IT infrastructure
Infrastructure Expansion of IT infrastructure Worldwide roll out of ERP system currently underway Global implementation of customer relationship management system started Development and extension of eBusiness structures 34
Slide 35: New Sartorius Campus to Further Boost Innovative Strength and Efficiency
New Sartorius Campus to Further Boost Innovative Strength and Efficiency Consolidation of the two major Goettingen sites into one site ~€500 million investment program extending up to 2020 Further expansion of membrane and lab instrument production capacity Enhance productivity of the Goetti
Slide 36: Agenda
Agenda 1 Sartorius in Brief 2 Bioprocess Solutions 3 Lab Products & Services 4 Sartorius 2020 5 Appendix
Slide 37: Expansion in Stages of Sartorius Campus
Expansion in Stages of Sartorius Campus Membrane Membrane removal reserve R&D production Casting machine Marketing | - under constr. - Cafeteria - 2016 - Production Lab Bioprocess Products & Services Solutions Receiving area Facility - under construction - Manufacturing - under const. - Mmgt. Colleg
Slide 38: Next Steps
Next Steps New Main Entrance Administration 38 Marketing | Cafeteria 38
Slide 39: Portfolio Bioprocess Solutions
Portfolio Bioprocess Solutions Filtration Purification 39
Slide 40: Portfolio Bioprocess Solutions
Portfolio Bioprocess Solutions Fluid Management Fermentation & Cell Culture Media 40
Slide 41: Portfolio Lab Products & Services
Portfolio Lab Products & Services Lab Balances Pipettes 41
Slide 42: Portfolio Lab Products & Services
Portfolio Lab Products & Services Moisture Analyzer Mass Comparators NucleoCounter Lab Water Systems Further Lab Instruments 42
Slide 43: Portfolio Lab Products & Services
Portfolio Lab Products & Services Lab Filtration Microbiological Quality Control 43
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