Stevanato Group S.p.a. · NYSE:STVN
Stevanato — Q4 2023 Earnings Presentation
29 slides from Stevanato's earnings presentation, Mar 7, 2024
Slide 1: Stevanato Group Q4 and FY 2023 Financial Results
Stevanato Group Q4 and FY 2023 Financial Results March 7, 2024
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements This presentation may include forward-looking statements. The words "executing," "advancing," "solid," "positive," "benefitting," "continue," "drive," "expanding," "fuel," "growth," "remain," "well positioned," "create," "strong," "see," "assumes," "b
Slide 3: Stevanato Group Fourth Quarter and Full Year 2023 Financial Results Earnings Call
Stevanato Group Fourth Quarter and Full Year 2023 Financial Results Earnings Call Franco Franco Marco Lisa Stevanato Moro Dal Lago Miles Executive Chairman CEO CFO SVP IR Q4 and FY 2023 Financial Results 3
Slide 4: Franco Stevanato
x Franco Stevanato Executive Chairman Q4 and FY 2023 Financial Results
Slide 5: Double-Digit Growth in 2023 Despite a Dynamic Environment
Double-Digit Growth in 2023 Despite a Dynamic Environment Solid Fiscal 2023 Positive Outlook in the Medium Term • Solid +10% revenue growth in FY 2023 (+11% on • Benefitting from favorable secular tailwinds; will continue to drive CC basis) robust demand for our HVS • Successfully executing against
Slide 6: Marco Dal Lago
x Marco Dal Lago Chief Financial Officer Q4 and FY 2023 Financial Results
Slide 7: Solid 2023 Confirms Strong Growth Construct Ahead
Solid 2023 Confirms Strong Growth Construct Ahead Double-digit growth in Q4 2023, but slightly FY 2024 Guidance: 9% to 12% revenue growth. below our expectations, put us at the low-end of Mid and long-term growth construct remain solid 2023 guidance range and unchanged Differences between FY 2023 ac
Slide 8: Q4 2023: Financial Highlights
Q4 2023: Financial Highlights Q4 23 revenue growth (+11% yoy on CC basis) driven by the BDS Segment • Q4 23 revenue slightly below our expectations by ~€ 5 million; evenly split Q4 2023 Revenue across both segments (€ Million) • Excluding Covid-19, total company revenue increased approximately 24% N
Slide 9: Q4 2023 Segment Trends
Q4 2023 Segment Trends Biopharmaceutical and Diagnostic Solutions Segment (BDS) REVENUE* +12% Q4 revenue increased 12% yoy (14% on CC basis) despite steep decline in Covid-19 (€ Million) 232 260 related revenue and industry-wide destocking • Excluding Covid-19 related revenue, BDS grew approx. 24% Q
Slide 10: Balance Sheet Snapshot
Balance Sheet Snapshot At Quarter Ended December 31, 2023 € 324.4M € 69.6M Since Q3 earnings, signed three Net Debt* Total Cash and Cash new mid-term loans totaling €110 Equivalents million, and have drawn down ~€60 million. In Fourth Quarter 2023 We believe we have adequate liquidity to fund the ne
Slide 11: Introducing Guidance for Fiscal 2024
Introducing Guidance for Fiscal 2024 FY 2024 Guidance For Q1 2024 we expect Revenue € 1.180B - € 1.210B • Consistent with prior years, revenue step down in Q1 24 vs Q4 23 Implied Revenue Growth 9% - 12% • Q1 total revenue flat to slightly down compared with Q1 23 Adjusted DEPS* € 0.62 - € 0.66 • BDS
Slide 12: Franco Moro
x Franco Moro Chief Executive Officer Q4 and FY 2023 Financial Results
Slide 13: Meaningful Progress while Managing Industry-Wide Challenges
Meaningful Progress while Managing Industry-Wide Challenges Double-digit HVS Share Increase Meaningful progress (HVS as % of Total Revenue, rounded) in our capacity topline growth expansion 35 to +10% 30 34 37 (+11% on CC basis) 17 Enhanced our integrated value 2019 2022 2023 2024 Guidance propositi
Slide 14: Factors Impacting the Engineering Segment Trajectory
Factors Impacting the Engineering Segment Trajectory Engineering Third-Party Revenue Convergence of factors impacting segment (€ million) • Very strong demand for machinery over the last two years +26% • Facing challenges on timely execution − Persistent long lead times for electronic components 184
Slide 15: Rise in Biologics Fueling Durable Growth in BDS Segment
Rise in Biologics Fueling Durable Growth in BDS Segment • Slow recovery in vial demand is temporary; path to normalization expected to continue throughout 2024 Share of FY 2023 BDS Revenue from • Many opportunities in the adoption of ready-to-use (RTU) vials and cartridges: Biologics, excluding Covi
Slide 16: New Order Intake and Backlog
New Order Intake and Backlog In Fourth Quarter 2023 At Year Ended December 31, 2023 ~€ 342M ~€ 945M New Order Intake Backlog, heavily weighted towards Biologics Due to quarterly fluctuations in backlog and order intake, we believe that annual analysis of these metrics provides a more accurate view o
Slide 17: HVS Expansion Designed to Meet Rising Customer Demand
HVS Expansion Designed to Meet Rising Customer Demand Latina, Italy Fishers (IN), U.S. • Successfully launched commercial PFS production in Q4 23 • Customer validation activities ongoing and will continue into 2026, as planned • Expect steady ramp over the coming years • On track to launch commercia
Slide 18: Integrated Offerings Enhance Our Value Proposition
Integrated Offerings Enhance Our Value Proposition Non-GMP Fill-and-Finish services for small batch operations • Identify possible interactions between the drug and the container systems during and after the F&F process • Fill-and-Finish services available in both our Technology Excellence Centers i
Slide 19: Confident in Path to Sustainable Long-Term Growth and Value Creation
Confident in Path to Sustainable Long-Term Growth and Value Creation Our Operational Priorities • #1 priority: flawless execution of our operational priorities Global HVS • Confident in our mid-term 2025 to 2027 growth targets: Expansion Growth Revenue growth LDD HVS Share of Revenue 40% to 45% in 2
Slide 20: Thank You
Stevanato Group Q4 and FY 2023 Financial Results Thank You
Slide 21: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. Please refer to the tables included in this presentation for a reconciliation of non-GAAP measures. Management monitors and evaluates our operating and financial performance using several non-GAAP f
Slide 22: Reconciliation of Non-GAAP Financial Measures (1/8)
Reconciliation of Non-GAAP Financial Measures (1/8) Reconciliation of Revenue to Constant Currency Revenue (Amounts in € millions) Biopharmaceutical and Three months ended December 31, 2023 Diagnostic Solutions Engineering Reported Revenue (IFRS GAAP) 260.0 60.6 Effect of changes in currency transla
Slide 23: Reconciliation of Non-GAAP Financial Measures (2/8)
Reconciliation of Non-GAAP Financial Measures (2/8) Reconciliation of EBITDA (Amounts in € millions) For the three months For the years Change Change ended December 31, ended December 31, 2023 2022 % 2023 2022 % Net Profit 45.2 48.3 (6.4)% 145.7 143.0 1.9% Income Taxes 13.6 15.5 (12.5)% 43.9 44.6 (1
Slide 24: Reconciliation of Non-GAAP Financial Measures (3/8)
Reconciliation of Non-GAAP Financial Measures (3/8) Reconciliation of Reported and Adjusted EBITDA, Operating Profit, Income Taxes, Net Profit, and Diluted EPS (Amounts in € millions, except per share data) Three months ended December 31, Operating Income Diluted Operating Income Diluted EBITDA Net
Slide 25: Reconciliation of Non-GAAP Financial Measures (4/8)
Reconciliation of Non-GAAP Financial Measures (4/8) Capital Employed (Amounts in € millions) As of December 31, As of December 31, 2023 2022 - Goodwill and Other intangible assets 81.0 79.4 - Right of Use assets 18.2 19.3 - Property, plant and equipment 1,028.5 641.4 - Financial assets - investments
Slide 26: Reconciliation of Non-GAAP Financial Measures (5/8)
Reconciliation of Non-GAAP Financial Measures (5/8) Net (Debt) / Net Cash (Amounts in € millions) As of December 31, As of December 31, 2023 2022 Non-current financial liabilities (255.6) (148.4) Current financial liabilities (143.3) (70.7) Other non-current financial assets - Derivatives 0.6 2.8 Ot
Slide 27: Reconciliation of Non-GAAP Financial Measures (6/8)
Reconciliation of Non-GAAP Financial Measures (6/8) CAPEX (Amounts in € millions) For the three months For the year Change Change ended December 31, ended December 31, 2023 2022 € 2023 2022 € Addition to Property, plants and equipment (1) 89.6 99.9 (10.3) 444.6 294.5 150.1 Addition to Intangible Ass
Slide 28: Reconciliation of Non-GAAP Financial Measures (7/8)
Reconciliation of Non-GAAP Financial Measures (7/8) Free Cash Flow (Amounts in € millions) For the three months For the years ended December 31, ended December 31, 2023 2022 2023 2022 Cash Flow from Operating Activities 10.2 59.7 105.2 103.3 Interest paid 0.7 1.0 3.1 3.5 Interest received (0.3) (0.3
Slide 29: Reconciliation of Non-GAAP Financial Measures (8/8)
Reconciliation of Non-GAAP Financial Measures (8/8) Reconciliation of 2024 Guidance (Updated) Reported and Adjusted EBITDA, Operating Profit, Net Profit, Diluted EPS (Amounts in € millions, except per share data) Revenue EBITDA Operating Profit Net Profit Diluted EPS Reported 1,180.0 - 1,210.0 302.8