Siegfried Holding Ag · SIX:SFZN
Siegfried — FY2022 Earnings Presentation
24 slides from Siegfried's earnings presentation, Feb 22, 2023
Slide 1: Siegfried significantly increases sales and profits in 2022
On the move since 150 years: Siegfried significantly increases sales and profits in 2022 Full Year Results 2022 – 22 February 2023
Slide 2: Safe harbor statement
Safe harbor statement This document is solely for use in connection with the Neither this document nor any copy of it may be presentation held by Siegfried Holding AG. It is furnished taken or transmitted into the United States or distributed, to you for your information and you may not reproduce it
Slide 3: All businesses growing, creating opportunities
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Sustainability Strong cash Building Significant – walking generation the strongest financing the talk for team capacity 150 years 3
Slide 4: Siegfried significantly increases sales and profits in 2022
Siegfried significantly increases sales and profits in 2022 In a year of macroeconomic uncertainties, Siegfried demonstrated its resilience and delivered a strong performance › Net sales up to CHF 1.229 billion (+15.6% vs. 2021 in local currencies, LC) › Core EBITDA of CHF 272.5 million (2021: CHF 2
Slide 5: All businesses growing, creating opportunities
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Sustainability Strong cash Building Significant – walking generation the strongest financing the talk for team capacity 150 years 5
Slide 6: Strong net sales growth in a year of macroeconomic uncertainties
Strong net sales growth in a year of macroeconomic uncertainties Net sales split 2022 CHF million 2022 2021 Change Drug Substances 753.7 656.0 +14.9% Drug Products 475.8 446.4 +6.6% Total 1 229.5 1 102.4 +11.5% (+15.6% in LC) › Net sales grew by +15.6% in Local Currencies (LC) › Strong currency head
Slide 7: Reconciliation for 2022: From Swiss GAAP FER to Core results
Reconciliation for 2022: From Swiss GAAP FER to Core results CHFm Comments 312.5 300 272.5 Adjustments to Core EBITDA 250 -40.0 › Current net interest Foreign -81.7 pension plans › Discount rate change 200 190.8 › Restructuring costs 150 127.8 Adjustments to Core net profit 11.3 100 -74.3 › Current
Slide 8: We have been able to further expand profit margins on all levels
We have been able to further expand profit margins on all levels, despite higher costs of doing business CHFm CHFm 1,400 400 1,229.5 1,200 318.9 1,102.4 300 1,000 272.5 239.3 800 207.2 200 190.8 600 124.4 127.8 400 95.3 100 200 21.7% 25.9% 18.8% 22.2% 11.3% 15.5% 8.6% 10.4% 0 0 Net sales Core gross
Slide 9: Core P&L 2022: Profitable growth, despite inflation and macro challenges
Core P&L 2022: Profitable growth, despite inflation and macro challenges CHF million 2022 2021 Comments Core results Net sales 1 229.5 1 102.4 Core cost of goods sold -910.6 -863.1 › Expansion of Core gross profit and Core gross profit margin, despite higher costs of doing business Core gross profit
Slide 10: Significant increase in cash generation, despite temporary deployment of capital into NWC
Significant increase in cash generation, despite temporary deployment of capital into Net Working Capital CHF million 2022 2021 Comments Operating cash flow before changes in NWC 276.1 210.7 Change in NWC -133.8 -91.0 › Massive increase of Operating cash flow before Operating cash flow 142.3 119.7 c
Slide 11: Capital allocation framework: A strong balance sheet provides financial flexibility
Capital allocation framework: A strong balance sheet provides the financial flexibility required to execute our strategy EVOLVE Invest in organic growth – in line with strategy Strong top Support › Expansion CapEx in capacity and technologies line growth Strategy EVOLVE M&A – Core and beyond Profita
Slide 12: All businesses growing, creating opportunities
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Sustainability Strong cash Building Significant – walking generation the strongest financing the talk for team capacity 150 years 12
Slide 13: Siegfried on the move: Milestones of our corporate journey over 150 years
Siegfried on the move: Milestones of our corporate journey over 150 years Acquisition of production sites in Evionnaz (CH), Minden (DE) and St. Vulbas (FR) from BASF Construction start of DS sites in Nantong 2022 (CN), Zofingen (CH) 2021 2020 Launch of facility in Malta (MT) 2015 Quotation on Founda
Slide 14: Sustainability is one of our five core values
Sustainability is one of our five core values: We do not only think about tomorrow, but far beyond CO2 eq Emissions1 Commitment: Siegfried’s carbon footprint to -15.7% be reduced by 50% until 20302 CO2 Electricity consumption from Target: Total energy Renewable Energy sources consumption reduction i
Slide 15: The year 2022 in short: Delivering upon the opportunities at hand
The year 2022 in short: Delivering upon the opportunities at hand plus laying ground for continued profitable growth Minden (DE) – DS Barcelona (ES) – DP Hameln (DE) – DP Evionnaz (CH) – DS Building our Global Team › Construction start for › Completion of carve-out › Additional aseptic vial › Prepar
Slide 16: Our organic growth is well supported by a strong development pipeline
Our organic growth is well supported by a strong development pipeline and healthy approval numbers of Small Molecules Development Candidates in Pipeline New Drug Approvals by the FDA 14,690 14,851 59 53 50 6,580 48 17 48 7,530 45 13 40 41 10 15 12 12 37 6 11 30 6,118 6,238 27 6 2 20 21 22 2,941 2,74
Slide 17: Siegfried's technological breadth generates a rich funnel of new business opportunities
Siegfried’s technological breadth generates a rich funnel of attractive new business opportunities for organic growth Strong small molecules pipeline of innovative drug candidates (Rx and Gx) › More than 10’000 small molecules (“NCE”) in development (pre-clinical to pre- approval) › Increased share
Slide 18: Expanding our capabilities and capacities to support long-term profitable growth
Expanding our capabilities and capacities to support long-term profitable growth Organic investments Portfolio management Mergers & Acquisitions › Large-scale DS production plant › Allocate high-value capacity › Acquire idle capacity with in Minden to margin accretive products attractive business an
Slide 19: We will continue to strengthen our core by organic investments and use M&A
We will continue to strengthen our core by continued organic investments and use M&A to enter into adjacencies and beyond Grow existing core Add adjacencies Enter new areas › Strengthening current value proposition › Diversification into new CDMO › Expansion into other high-growth to fully exploit s
Slide 20: Pushing digital technologies to further leverage the expertise and quality of our teams
Pushing digital technologies to further leverage the expertise and quality of our teams SAP S4 HANA roll-out Separation of IT & OT1 Chemometrics Global roll-out of S4/HANA Upgrading of our IT / OT infrastructure, Acceleration of development enhancing operational efficiencies enhancing resilience aga
Slide 21: Operational efficiency and sustainability work hand-in-hand
Operational efficiency and sustainability work hand-in-hand Sustainability Cost efficiency Digital technologies (“chemometrics”) Process re-design and optimization Resource efficiency = Cost efficiency › Digital twins of large-scale assets to › Re-design of API synthetic routes and › Shorter time-to
Slide 22: Siegfried's journey goes on: Consistently deliver profitable growth
Siegfried’s journey goes on: Consistently deliver profitable growth by investing in the global network and executing value adding M&A › Topline growth at least in line with CDMO market › Active portfolio management › Operational and commercial excellence › Investments in global network – adding tech
Slide 23: All businesses growing, creating opportunities
All businesses Driving organic growing investments Creating All margins M&A opportunities expanding always on Sustainability Strong cash Building Significant – walking generation the strongest financing the talk for team capacity 150 years 23
Slide 24: Annual General Meeting / Half-Year Reporting
Annual General Meeting Half-Year Reporting 20 April 2022 17 August 2023