Slide 1: FY 2018 Earnings Presentation
FY 2018 Earnings Presentation Dietmar Siemssen, CEO Rainer Beaujean, CFO Duesseldorf, February 14, 2019
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 Dietmar Siemssen 1 Gerresheimer today: Existing strengths as excellent fundament for profitable growth Rainer Beaujean 2 FY 2018 operational and financial highlights Dietmar Siemssen 3 Operational and financial framework for 2019-2022 Conclusion Appendix FY 2018 Earnings 3
Slide 4: Agenda
Agenda Dietmar Siemssen 1 Gerresheimer today: Existing strengths as excellent fundament for profitable growth Rainer Beaujean 2 FY 2018 operational and financial highlights Dietmar Siemssen 3 Operational and financial framework for 2019-2022 Conclusion Appendix FY 2018 Earnings 4
Slide 5: Initial expectations confirmed: strong existing positioning based on high-quality products, customer relationships, talent
Initial expectations confirmed: strong existing positioning based on high-quality products, customer relationships, talent MARKET & INDUSTRY PRODUCTION & PROCESSES PEOPLE PRODUCTS FY 2018 Earnings 5
Slide 6: A solid base in place to launch the next phase of our journey
A solid base in place to launch the next phase of our journey EXECUTION U N D E R W AY IDENTIFIED POTENTIAL Decisive steps to STRONG accelerate mid-term F O U N D AT I O N S earnings growth have Advanced Technologies 5 been made in FY 2018, 4 is clearly upgrading our leading to significant investmen
Slide 7: Great human capital. Management board complete and stabilized
1 Great human capital. Management board complete and stabilized Great human capital New management board CO MPLET E AND ST ABILIZED Pride and commitment in manufacturing products that contribute to health and well being Strong engineering and production DNA Process and quality driven Proven track re
Slide 8: Strong foundations to capitalize on market trends
2 Strong foundations to capitalize on market trends Expectations from customers, Megatrends consumers, patients Rise in chronic diseases Stricter regulatory Personalization and aging population requirements Compliance and Documentation New drugs especially Rapid growth in in Biosimilars and generics
Slide 9: Gerresheimer is operating in large and attractive markets
2 Gerresheimer is operating in large and attractive markets Drug Cosmetics Pharma Pharma Syringes Delivery Glass Glass1 Plastic Devices Estimated Market Size 2017² ~ 1.8 ~ 2.2 ~ 5.8 ~ 0.9 ~ 4.0 (in € bn) Market CAGR '17-’22² LOW SINGLE DIGIT MID SINGLE DIGIT (in %) The strategic relevant core market
Slide 10: Clear definition of target markets in Pharma & Healthcare
3 Clear definition of target markets in Pharma & Healthcare … PHARMA Product & Delivery Primary Marketing & VALUE Research Process Production Systems & Logistics Services CHAIN Packaging Sales Development Assembly HARDWARE Gx accessible market Gx strategic relevant market Filling machines Tools, Ass
Slide 11: … as well as in Cosmetics
3 … as well as in Cosmetics COSMETIC Product & Primary Delivery Marketing & VALUE Research Process Production Packaging & Systems & Logistics Services CHAIN Sales Development Decoration Assembly HARDWARE Filling machines CONSUMABLES Suppliers Plastic Moulded Glass Packaging Components Gx strategic r
Slide 12: Expanding with Advanced Technologies to a full solution provider to the Pharma Industry
4 Expanding with Advanced Technologies to a full solution provider to the Pharma Industry A D VA N C E D T E C H N O L O G I E S Flow measurement Data gathering Data management + ... /… Electronics Sensile Medical + Connectivity Biosimilar/ Biotech Companies + OEM / ODM 2 Other therapeutic business
Slide 13: Sensile Medical integration completed, and is a first step to target new therapeutic areas
4 Sensile Medical integration completed, and is a first step to target new therapeutic areas & vertical integration Clear roadmap 1 A great asset Current projects Lead generation stand alone 2 Integration Operational readiness for Medical Plastics Systems completed Varying timelines 3 CMO Opportunit
Slide 14: Decisive steps to accelerate mid-term earnings growth have been made in FY 2018
5 Decisive steps to accelerate mid-term earnings growth have been made in FY 2018 and drive investments for 2019 and 2020 Priority has been to assess all the big projects which have been launched in the course of the year Syringes: adapting to where we play Medical Plastics Systems: driving (commodi
Slide 15: Agenda
Agenda Dietmar Siemssen 1 Gerresheimer today: Existing strengths as excellent fundament for profitable growth Rainer Beaujean 2 FY 2018 operational and financial highlights Dietmar Siemssen 3 Operational and financial framework for 2019-2022 Conclusion Appendix FY 2018 Earnings 15
Slide 16: Executing on the deployment of our growth levers in FY 2018
Executing on the deployment of our growth levers in FY 2018 QUALITY AND COST LEADERSHIP Selected examples – Triveni: full ownership – Gx® Elite Glass ramped up – New plastic packaging – Gx InnoSafe® production in China – Gx® RTF and ETF Vials – New plastic packaging Regional Products & – Gx RTF® Cle
Slide 17: Market context as defined by IQVIA
Market context as defined by IQVIA Historic development of Pharma market volumes1 Expected development of Pharma market volumes1 (in %) CAGR ’19-‘23 (in %) Global Developed Markets Phamerging Markets 4.9% ROW ’18 ’14-’18 3.7% global volume volume 2.9% CAGRs growth 2.2% 1.8% 1.7% Medicine 0.1% 1.7% 0
Slide 18: Financial targets achieved, back to growth in FY 2018
Financial targets achieved, back to growth in FY 2018 1 GROUP EXCL. SENSILE MEDICAL: FY 2018 ACHIEVED METRICS GUIDANCE FY 2018 Revenues growth reignited in FY 2018 whilst network Revenues (FXN1) Approx. EUR 1.38bn to EUR 1.4bn EUR 1,394m charges, energy costs and Adj. EBITDA Approx. EUR 305m to EUR
Slide 19: Organic revenues growth of 3.4% achieved in FY 2018
Organic revenues growth of 3.4% achieved in FY 2018 FXN1 growth YoY: +4.3% Organic growth YoY: +3.4% EUR m FXN1 25.6 1,393.8 12.9 1,406.7 20.7 1,348.3 (0.8) FY 2017 Δ P&D Δ PPG Δ Internal Sales FY 2018 Revenues FXN Δ GAT FY 2018 FXN excl. GAT P&D FY 2018 performance review PPG FY 2018 performance re
Slide 20: Resin and European gas prices as main negative swing factors for profitability in FY 2018
Resin and European gas prices as main negative swing factors for profitability in FY 2018 0.4 1.6 3.0 307.2 (1.7) 307.5 (1.1) (1.4) 308.0 EUR m FXN1 FY 2017 Δ P&D Δ PPG Δ HQ FY 2018 Expenses Network Δ GAT FY 2018 Adjusted Adjusted related to charges 2 Adjusted EBITDA excl. EBITDA FXN Triveni put rel
Slide 21: FX-Impact of EUR 39.0m on FY 2018 Revenues and EUR 9.4m on Adjusted EBITDA
FX-Impact of EUR 39.0m on FY 2018 Revenues and EUR 9.4m on Adjusted EBITDA at Group level FY 2018 review EUR M Group P&D PPG GAT Revenues 1,367.7 751.3 605.2 12.9 - of which FX effect -39.0 -26.6 -12.4 0.0 Adj. EBITDA 298.61,2 203.02 114.71 3.0 - of which FX effect -9.4 -7.9 -1.5 0.0 - Adj. EBITDA m
Slide 22: Adjusted net income after non-controlling interests EUR 50.5m higher than 2017
Adjusted net income after non-controlling interests EUR 50.5m higher than 2017, mainly driven by lower taxes 49.2 178.0 EUR m 66.3 131.1 (2.3) 127.5 103.1 3.0 (12.2) (5.2) thereof (16.8) (7.1) FX-effects 9.4m 1) Net income Adj. EBITDA Depreciation Total one-off Amortization Net finance Income taxes
Slide 23: Increase in net debt YoY essentially driven by the acquisition of Sensile Medical
Increase in net debt YoY essentially driven by the acquisition of Sensile Medical EUR m FCF Acquisitions Operating CF Pension cash Net Debt Adjusted Net Working Capital Cash Cash Cash out and Sensile Net Debt Nov 2017 EBITDA Capital Expenditure Excep./Restr. Interest Taxes other Medical Triveni Divi
Slide 24: Financial condition and liquidity well balanced
Financial condition and liquidity well balanced NET DEBT AND FINANCIAL LEVERAGE FINANCIAL POSITION Net debt 886.4 KPIs Nov 30, 2018 712.7 Adj. EBITDA leverage (x) 3.1x Net Debt (EUR) 886.4 2.3x Adj. EBITDA leverage 3.1x Adj. EBITDA leverage covenant 3.5x Nov 30, 2017 Nov 30, 2018 NET DEBT SUMMARY EX
Slide 25: Agenda
Agenda Dietmar Siemssen 1 Gerresheimer today: Existing strengths as excellent fundament for profitable growth Rainer Beaujean 2 FY 2018 operational and financial highlights Dietmar Siemssen 3 Operational and financial framework for 2019-2022 Conclusion Appendix FY 2018 Earnings 25
Slide 26: Shaping our assumptions for 2019 and following years
Shaping our assumptions for 2019 and following years Ambition remains to outperform overall market volume growth We are planning higher investments for FY 2019 and FY 2020 to support capacity expansion for new products and to drive productivity improvements. Sensile Medical is expected to generate m
Slide 27: Guidance parameters for FY 2019
Guidance parameters for FY 2019 At Group level and FXN2: METRICS FY 2018 BASIS1 EXPECTED FY 2019 (FXN2) Revenues EUR 1,359.7m ~ EUR 1.40bn to EUR 1.45bn Adj. EBITDA EUR 289.1m ~ EUR 295m (plus/minus EUR 5m)3 Capex (% FXN sales) 8.4% ~ 12% for 2019 Wider financial framework including Sensile Medical:
Slide 28: Indications for the years 2020 -2022
Indications for the years 2020 -2022 At Group level EXPECTED ADJUSTED EBITDA EXPECTED TOP LINE GROWTH EXPECTED CAPEX REQUIREMENTS MARGIN DEVELOPMENT 4% to 7% FXN revenues growth ~ 21.0% in FY 2020 Temporary increase of capex to per annum for the years 2020 – ~ 23% for the years FY 2021 & FY
Slide 29: It's a journey
Clear potential to focus on profitable growth It‘s a journey We will continue to shape Gerresheimer‘s future and drive focused acceleration of growth, EXECUTION improvement of U N D E R W AY profitability and cash IDENTIFIED generation across POTENTIAL the board STRONG F O U N D AT I O N S FY 2018 E
Slide 30: Agenda
Agenda Dietmar Siemssen 1 Gerresheimer today: Existing strengths as excellent fundament for profitable growth Rainer Beaujean 2 FY 2018 operational and financial highlights Dietmar Siemssen 3 Operational and financial framework for 2019-2022 Conclusion Appendix FY 2018 Earnings 30
Slide 31: Development of net working capital
Development of net working capital Nov 30, 2018 NOV 30, 2017 EUR M EUR M Inventories 171.5 148.4 thereof prepayments made 4.7 2.1 Trade receivables 273.5 242.7 Trade payables 207.43 176.3 Payments received on account 34.9 29.1 of orders Net working capital 202.7 185.7 Average NWC in % of LTM revenue
Slide 32: GXI Key Data
GXI Key Data in EUR per share 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Dividend 0.40 – 0.50 0.60 0.65 0.70 0.75 0.85 1.05 1.10 1.15 Dividend yield 1.5% – 1.8% 1.9% 1.7% 1.4% 1.7% 1.2% 1.5% 1.6% 1.8% Payout ratio 22% – 26% 25% 25%1 23% 26% 25% 25% 27% 20% Share price high 38.20 27.05 29
Slide 33: Overview of Abbreviations and Definitions
Overview of Abbreviations and Definitions ABBREVIATIONS AND DEFINITIONS Adj. EBITDA Earnings before income taxes, net finance expense, amortization of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses and one-off income and expenses Adjusted EPS Adjuste
Slide 34: Financial calendar and contact details
Financial calendar and contact details FINANCIAL CALENDAR April 11, 2019 Interim Report 1st Quarter 2019 June 6, 2019 AGM July 11, 2019 Interim Report 2nd Quarter 2019 October 10, 2019 Interim Report 3rd Quarter 2019 CONTACT DETAILS Name Corporate Investor Relations Phone +49 211 6181 257 Fax +49 21
Slide 35: 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.