Sartorius AG · XETR:SRT
Sartorius — Deutsche Bank German Corporate Conference 2007
35 slides from Sartorius's conference presentation, Jun 20, 2007
Slide 1: Accelerating Growth
Accelerating Growth Deutsche Bank German Corporate Conference June 20, 2007 Dr. Joachim Kreuzburg, CEO
Slide 2: Agenda
Agenda • Overview • The Biotechnology Division • The Stedim Transaction • The Mechatronics Division • Outlook • Appendix
Slide 3: Sartorius in Brief
Sartorius in Brief Biotechnology Division: Mechatronics Division: • Total solution provider for the • Balances, scales and service for laboratory biopharmaceutical industry and industrial applications • Among top 3 in membrane filtration • Global number 2 in our laboratory and and cell culture techn
Slide 4: Sartorius 2006 Financials
Sartorius 2006 Financials Sales €521.1 mn Split by Region: 4 Biotechnology €271.0 mn 19 Mechatronics €250.0 mn Europe 58 Asia | Pacific 19 North America Sales Growth +7.6% Other Markets Biotechnology +8.5% Mechatronics +6.6% EBIT margin: ~12%* 12% 9.0% 10.0% EBIT margin 10.0% 7.0% 48 8% Biotechnolog
Slide 5: Sartorius Q1 2007 Financials
Sartorius Q1 2007 Financials Sales €127.6 mn Order Intake (OI) €140.2 mn Biotechnology €66.3 mn Biotechnology €72.7 mn Mechatronics €61.3 mn Mechatronics €67.5 mn Sales Growth* +1.6% OI Growth* +8.5% Biotechnology -0.5% Biotechnology +6.9% Mechatronics +4.0% Mechatronics +10.3% EBIT €11.0 mn EBIT ma
Slide 6: Agenda
Agenda • Overview • The Biotechnology Division • The Stedim Transaction • The Mechatronics Division • Outlook • Appendix
Slide 7: Total Solution Provider Strategy
Total Solution Provider Strategy Fermentation, Storage, Filtration Cell Culture Transport • Complete process-solutions • Scalable products for all life cycle phases (from R&D to production) • Sophisticated service portfolio for process optimization, validation and regulatory support • High proportio
Slide 8: Disposables Replace Stainless Steel Equipment
Disposables Replace Stainless Steel Equipment Key drivers: • Reduced risk of cross-contamination • Reduced downtime • Reduced costs • Reduced upfront investment • Higher flexibility 8
Slide 9: Disposables Provide Additional Growth
Disposables Provide Additional Growth Market size Disposables CAGR: ~18% Biotech industry CAGR: ~12% Classic pharmaceutical industry CAGR: 6% - 8% 2006 2011 9
Slide 10: Agenda
Agenda • Overview • The Biotechnology Division • The Stedim Transaction • The Mechatronics Division • Outlook • Appendix
Slide 11: Stedim Biosystems in Brief
Stedim Biosystems in Brief • Pioneer of disposable bags for biopharmaceutical applications and a global market leader in this fast growing market 56% • Provider of unique freeze-thaw technology and aseptic transfer systems • Headquarters and main production in Aubagne, France • Listed on the Euronex
Slide 12: Stedim Biosystems 2006 Financials
Stedim Biosystems 2006 Financials Sales € 91.4 mn Split by Region: Single-Use € 64.5 mn 44 Equipment € 26.9 mn 56 Europe & Others Sales Growth +6.6% North America Single-Use +32.3% Equipment -27.3% Split by Activity: 29 EBIT margin 12.7% Single-Use 71 Equipment 12
Slide 13: Combination of Filter and Bag Business Drives Growth Prospects
Combination of Filter and Bag Business Drives Growth Prospects • Almost each bag is used in combination with a filter • Double-digit growth rates in the filter business • Bag market growth with +30% even higher • It is expected that 30% of filters will be sold in combination with bags by 2011 2006 2
Slide 14: Strategic Rationale
Strategic Rationale • Complementary product portfolios, R&D platforms and regional strengths • Significant revenue synergies, because filters and bags are used in combination Sartorius Stedim Biotech will be a leading solution provider for the biopharmaceutical industry with the most complete produc
Slide 15: Complementary Product Portfolios Result in a Unique Market Position
Complementary Product Portfolios Result in a Unique Market Position Cell culture Membrane Purifi- Freeze Bags / Ferment. filtration cation / thaw Sartorius + + + - - Stedim - - - + + Sartorius Stedim + + + + + Millipore - + + + - Pall + + + - - Fisher + - - + - 15
Slide 16: Regional Fit
Regional Fit Utilization of the Sartorius sales organization in Asia for Stedim products Enhanced market position in North America as the largest biotech market ㆍ ㆍ ㆍ • Sales • Production and Sales 16
Slide 17: Structure of the Sartorius Group after the Transaction
Structure of the Sartorius Group after the Transaction Free Stedim Sartorius AG float founders up to 9% 70%-91% 100% 21% Sartorius Stedim Biotech S.A. Mechatronics Next steps: 1) June 29th 2007 *: 2) Following the closing of the tender offer expected end of July: • Acquisition of Stedim shares from
Slide 18: Substantial Benefits for Sartorius Shareholders
Substantial Benefits for Sartorius Shareholders • Significant strengthening of Sartorius Biotechnology division • Hidden value within the Sartorius share is unlocked • Additional growth and earnings potential at a fair price • Transaction structure limits financing requirements for the Sartorius gro
Slide 19: Agenda
Agenda • Overview • The Biotechnology Division • The Stedim Transaction • The Mechatronics Division • Outlook • Appendix
Slide 20: Our Strategy: Global Full-Liner of Weighing Equipment
Our Strategy: Global Full-Liner of Weighing Equipment Packaging, R&D Labs Production Despatch • Products and services for all kinds of weighing and control applications • Focus on the premium and standard segment • Build up additional production capacities in China and India • Further enhance sales
Slide 21: Characteristics of the Mechatronics Business
Characteristics of the Mechatronics Business • Attractive margins in the laboratory instruments business • Consolidation trend within the market of industrial applications • High growth rates in the Asia/Pacific region 21
Slide 22: Sartorius is One of Only Two Global Full-Liners in Their Industry
Sartorius is One of Only Two Global Full-Liners in Their Industry Laboratory business * Industrial business * ~5 ~30 ~30 ~20 ~75 ~40 Sartorius Mettler-Toledo Others • Duopolistic market structure • Highly fragmented market • Attractive margins • Consolidation trend • Market volume: €300 mn – €400 mn
Slide 23: Asia as a Growth Driver
Asia as a Growth Driver Sales facilities Production and sales facilities • Asian markets provide the highest growth rates, especially for industrial weighing equipment • In the Asian industrial weighing market we have the highest potential to increase our market share • Overall in industrial busines
Slide 24: Agenda
Agenda • Overview • The Biotechnology Division • The Stedim Transaction • The Mechatronics Division • Outlook • Appendix
Slide 25: Financial Outlook
Financial Outlook Sartorius Stedim Biotech Sartorius Group Pro forma sales 2007 € 400 – 420 mn € 660 – 680 mn Pro forma operating EBIT ~ 14 % ~ 12 % margin 2007 Transaction and integration € 5 - 10 mn € 5 - 10 mn costs 2007 CAGR 2007-2011 14 – 15 % 11 – 12 % Operating EBIT margin Further increase in
Slide 26: Agenda
Agenda • Overview • The Biotechnology Division • The Stedim Transaction • The Mechatronics Division • Outlook • Appendix
Slide 27: Description of the Transaction Structure
Description of the Transaction Structure • Sartorius has carved out its Biotechnology division • June 29th 2007: Sartorius acquires a substantial stake in Stedim from its founders on the basis of €43 per Stedim share cash consideration: €87 mn Sartorius Stedim Biotech shares: €65 mn • As a result, S
Slide 28: Sartorius Invites Stedim Shareholders to Remain Invested
Sartorius Invites Stedim Shareholders to Remain Invested • Stedim shareholders shall have two options within the Tender offer • To tender for €43 per share in cash immediately • To keep their shares and be granted a non-transferable warrant to potentially receive a cash payment After a maturity peri
Slide 29: Indicative Transaction Timeline
Indicative Transaction Timeline June 29th 2007 • Acquisition of Stedim shares • Launching tender offer Antitrust Completion • Extraordinary general meeting filings of carve-out - Execution of contribution Feb-07 Mar-07 Apr-07 May-07 June-07 July-07 Closing of tender offer 29
Slide 30: Characteristics of the Biotechnology Business
Characteristics of the Biotechnology Business Filtration business * Fermentation business * 18 22-25 5 25- 15 - 40 - 4 30 Sartorius Sartorius 28-3 Millipore New Brunswick Scientific, 0 32 each Applikon, Bioengineering, ABEC 28- Pall 5-1 0 Others Others • Double-digit growth rates • Single-digit grow
Slide 31: History
History • 1870 “F. Sartorius“ precision mechanical workshop is founded • 1922 Commercial-scale manufacture of membrane filters begins • 1990 Sartorius goes public • 1998 Sartorius raises capital • 1998 ff. Strong expansion through acquisitions • 2001 “Plant 2001” starts up operations • Today Technol
Slide 32: Facts about Sartorius Shares
Facts about Sartorius Shares ISIN: Ordinary share: DE0007165607; Preference share: DE0007165631 Market segment: Prime Standard (technology sector) Indices: CDAX, Prime All Share-Index, Technology All Share-Index, Prime Industrial Performance-Index, NISAX20 Number of shares: 18,720,000 no-par individ
Slide 33: Executive Board
Executive Board Dr. Günther Maaz Olaf Grothey Dr. Joachim Kreuzburg President of the Executive for CEO, Chairman, President of Mechatronics Division Labor Relations the Biotechnology Division 33
Slide 34: Contacts
Contacts Heiko Imöhl Andreas Wiederhold Vice President Treasury & Investor Relations Treasury & Investor Relations Phone: +49.551.308.4034 Phone: +49.551.308.1668 Fax: +49.551.308.3153 Fax: +49.551.308.3153 E-mail: heiko.imoehl@sartorius.com E-mail: andreas.wiederhold@sartorius.com Sartorius AG Ween
Slide 35: Disclaimer
Disclaimer This presentation contains statements concerning the Sartorius group’s future performance. 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 actually materialize. This
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