Slide 1: FY 2019 Earnings Presentation
FY 2019 Earnings Presentation Dietmar Siemssen, CEO Bernd Metzner, CFO Duesseldorf, February 19, 2020
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 or
Slide 3: Agenda
Agenda 1 Strategy and Operational Update 2 Financial Update 3 Guidance & Conclusion 3
Slide 4: Key take-aways 2019
Key take-aways 2019 Foundations set and gears switched for future profitable growth Guidance FY 2019 reached Underlying FXN Revenues of EUR 1.40bn1 Underlying FXN Adjusted EBITDA of EUR 293m2 Group-wide 11.9% of FXN capex / revenues1 Dividend proposal another increase from EUR 1.15 to EUR 1.20 per s
Slide 5: We laid the Base for a Sustainable and Profitable Growth Path
We laid the Base for a Sustainable and Profitable Growth Path Enablers 1 2 3 Mindset for Growth Investment Innovation / Excellence program Growth levers 4 5 6 Underlying Growth New products Market Growth segments 19/02/2020 FY 2019 Earnings 5
Slide 6: Implementing a Mindset for Growth
1 Implementing a Mindset for Growth Enablers 1 2 3 Mindset for Growth Investment Innovation / Excellence program Customer focus One Gerresheimer Global Key Account Management Leverage our full portfolio Customer touchpoint optimization Create Synergies across the Group Mindset Excellence Resource al
Slide 7: Investing for Future Growth
2 Investing for Future Growth Enablers 1 2 3 Mindset for Growth Investment Innovation / Excellence program Investments for 2019-2020 (~ 12% of revenues) Capex formula Capacity expansion Primary Packaging Glass New furnaces & capacity increase in Essen and Lohr, Efficiency ~ 2% Germany Growth Medical
Slide 8: Innovative Products increasing Customer Value
3 Innovative Products increasing Customer Value Enablers 1 2 3 Mindset for Growth Investment Innovation / Excellence program Moving up the value chain Creating new perspectives Example: Gx® RTF Vials Example: Gx® Elite Glass Ready-to-fill, washed and sterile Type I Glass vials Reducing customer’s to
Slide 9: Leveraging the Technology of Sensile Medical
3 Leveraging the Technology of Sensile Medical Enablers 1 2 3 Mindset for Growth Investment Innovation / Excellence program Attractive business field Clear roadmap SQ Innovation (game changer potential) fully on track Excellent EVER Pharma already launched Sound pipeline and demand Merging the indus
Slide 10: Growth Segments: Increasing the Footprint & closing the white Spots
5 Growth Segments: Increasing the Footprint & Growth levers 4 5 6 Underlying Growth New products Market Growth segments closing the white Spots in fast growing Markets Latest additions in 2019 & 2020 Medical Devices & Syringes (SOP H2 ‘20) Skopje, North Macedonia Plastic Packaging (SOP Q1 ‘20) Plast
Slide 11: Growth Segments: Biotech
5 Growth Segments: Biotech Growth levers 4 5 6 Underlying Growth New products Market Growth segments Launch of Gx Biological Solutions Fastest growing segment is biotech with large molecules High demand for specialized solutions Our Offer: Large portfolio of innovative products and solutions for bio
Slide 12: New Products as Growth Drivers
6 New Products as Growth Drivers Growth levers 4 5 6 Underlying Growth New products Market Growth segments Examples: Gx InnoSafe® Strenghtened Glass New finishing technologies Gx RTF® ClearJect® (COP) Duma® Standard Child Micro pumps / Resistant Smart devices Gx® Elite Glass Vials Irradiated dropper
Slide 13: Our 2020 mid-single digit-% sales Growth fueled by Growth Levers
Our 2020 mid-single digit-% sales Growth fueled by Enablers 1 Mindset for Growth / Excellence 2 Investment program 3 Innovation Growth Levers Growth levers 4 5 6 Underlying Growth New products Market Growth segments REVENUE DEVELOPMENT FOR 2020 Underlying revenues 2019 1.40bn Incremental revenue gro
Slide 14: Agenda
Agenda 1 Strategy and Operational Update 2 Financial Update 3 Guidance & Conclusion 14
Slide 15: Sensile extraordinary effects in Q4 2019
Sensile extraordinary effects in Q4 2019: Sanofi project cancellation and impairment Sensile Medical (EUR m) Q1-Q3 2019 Q4 2019 Analysis FY 2019 Derecognition of contingent purchase price 118.6 11.2 129.8 liabilities Cumulative adjustment of revenues - -17.3 -17.3 Impact from the contract Derecognit
Slide 16: Q4 2019 underlying performance: As expected
Q4 2019 underlying performance: As expected Q4 2019 Q4 2019 Q4 2018 (EUR m) Adjustment YoY Analysis actual underlying underlying Mainly triggered by Sensile, in FXN revenues 364.3 17.3 381.6 390.8 -2.3% total core business (P&D, PPG) as expected almost flat FX effects 4.3 - 4.3 0.1 FX tailwind in 20
Slide 17: Strong growth and margin improvement in PPG
Strong growth and margin improvement in PPG EUR m FXN growth -4.5% — Phasing effects of EUR 10m in Tooling 224.6 — Favourable product mix leads to margin increase 214.6 — Underlying FXN adj. EBITDA margin increased from P&D 70.0 31.2% in Q4 18 by 100 bps to 32.2% in Q4 19 69.0 — In addition, FX tail
Slide 18: Strong cash flow in Q4 2019
Strong cash flow in Q4 2019 (EUR m) Q4 2019 Q4 2018 Change Analysis Adjusted EBITDA 81.6 101.0 -19.4 Termination adjustments 15.3 - 15.3 Underlying adj. EBITDA 96.9 101.0 -4.1 Strong net working capital Change in net working capital 57.6 33.4 24.2 management Capex program for 2019 as Capex -75.3 -69
Slide 19: FY 2019 underlying performance
FY 2019 underlying performance FY 2019 FY 2019 FY 2018 (EUR m) Adjustment YoY Analysis actual underlying underlying Guidance of EUR 1.40bn - FXN revenues 1,380.2 17.3 1,397.5 1,365.5 2.4% 1.45bn achieved on lower end FX effects 12.1 - 12.1 -5.8 Revenues 1,392.3 17.3 1,409.6 1,359.7 3.7% Guidance of
Slide 20: Slight impact from new accounting standard IFRS 16 for FY 2020
Slight impact from new accounting standard IFRS 16 for FY 2020 IFRS 16 Overview Impact on the consolidated financial statements New standard regarding the accounting of leases replacing IAS 17 Adj. EBITDA: EUR 9-11m Introducing a uniform model for identifying leasing arrangements Net financial debt:
Slide 21: Agenda
Agenda 1 Strategy and Operational Update 2 Financial Update 3 Guidance & Conclusion 21
Slide 22: Guidance
Guidance At Group level (FXN) FY 2019 Base1 FY 2020 Mid-term Mid-single digit Mid-single digit Revenue growth EUR 1.40bn growth growth Adjusted EBITDA 21% ~21%2 ~ 23% (EUR 297m) Capex 11.9% ~ 12% 8 - 10% (% of sales) 1. Please refer to the outlook in the Annual report 2019 on page 95. 2. Including a
Slide 23: Conclusion
Conclusion In 2019 we laid the foundation for profitable, sustainable growth and switched gears; Culture, investments and product innovations. 2020 will be the turning point for growth: Underlying market growth, growth segments and new products. Our future: Our activities will make a difference and
Slide 24: Financial calendar 2020
Financial calendar 2020 FINANCIAL CALENDAR April 9, 2020 Publication 1st Quarter 2020 June 24, 2020 Annual General Meeting 2020 July 14, 2020 Publication 2nd Quarter 2020 October 13, 2020 Publication 3rd Quarter 2020 End of 2020 Capital Markets Day 24
Slide 25: Appendix
Appendix FY 2019 Earnings 25
Slide 26: Adjustments in FY 2019 and Q4 2019
Adjustments in FY 2019 and Q4 2019 FY 2019 Q4 2019 (EUR m) Adj. for Regular Adj. for Regular Total Total Sensile Adjustment Sensile Adjustment Revenues 17.3 17.3 - 17.3 17.3 - Adj. EBITDA -103.3 -103.3 - 15.3 15.3 - Total one-off effects 6.3 - 6.3 3.6 - 3.6 Depreciation, amortization & impairment 17
Slide 27: Adjustments in FY 2018 and Q4 2018
Adjustments in FY 2018 and Q4 2018 FY 2018 Q4 2018 (EUR m) Network Regular Network Regular Total Küssnacht1) & Tax3) adjustment Total Küssnacht1) & Tax3) adjustment Triveni2) Triveni2) Revenues -8.0 -8.0 - - - -0.2 -0.2 - - - Adj. EBITDA -9.5 -12.0 2.5 - - -0.1 -0.1 - - - Total one-off effects 22.0
Slide 28: Financial status
Financial status NET FINANCIAL DEBT AND ADJ. EBITDA LEVERAGE 942.7 Net financial debt 886.4 Adj. EBITDA leverage (x) 3.1x 2.4x Nov. 30, 2018 Nov. 30, 2019 NET FINANCIAL DEBT SUMMARY EXPIRY DATE MAIN FACILITIES In EUR m FY 2018 FY 2019 550.0 RCF Promissory loans Drawn portion of RCF 264.4 302.3 Promi
Slide 29: Our Vision
Our Vision Gerresheimer will become the leading global partner for enabling solutions that improve health and well-being. Our success is driven by the passion of our people.