Sartorius AG · XETR:SRT
Sartorius — German | Austrian Small-Mid Cap Conference 2008
35 slides from Sartorius's conference presentation, Nov 6, 2008
Slide 1: German | Austrian Small-Mid Cap Conference
Platzhalter Bild German | Austrian Small-Mid Cap Conference Joachim Kreuzburg, CEO, Brocket Hall, November 6 | 7, 2008
Slide 2: 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
Slide 3: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Financials and Outlook • Appendix
Slide 4: Sartorius Runs Two Divisions
Sartorius Runs Two Divisions Biotechnology Division Mechatronics Division Total Solution Provider for Global Full-Liner of Weighing Equipment Biomanufacturing and Control Technology Focus on single-use technology Focus on lab and industrial applications 2007: Sales1): €375.9mn | EBITA1)2): 13.
Slide 5: Structure of the Sartorius Group
Structure of the Sartorius Group Sartorius AG Other Shareholders 100% approx. 70% approx. 30% Sartorius Mechatronics Sartorius Stedim Biotech S.A. page 5
Slide 6: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Financials and Outlook 2008 • Appendix
Slide 7: Total Solution Provider for Next Generation Biomanufacturing
Total Solution Provider for Next Generation Biomanufacturing Most complete product and service portfolio along the process chain of the biotech industry Focus on single-use products (~ 75% of sales revenue) Strong underlying market trend in favour of single-use concepts in the fastest growing
Slide 8: Pipeline Filled with Biotech Drugs
Pipeline Filled with Biotech Drugs Total Number of Biotech Drugs Currently, more than 1,000 biotech drugs 1000 in clinical stages 900 800 About one-fifth in the last clinical phase 700 600 Increasing number of approved biotech 500 drugs; since 2002, more than 50% of newly 400 approved drugs ar
Slide 9: US Market of Therapeutic Monoclonal Antibodies (MAbs)
US Market of Therapeutic Monoclonal Antibodies (MAbs) Sales in Billions of US$ Growth Rate in % CAGR 2004-2007 26.3%, fueled by the 35 35 launch of 6 new products 30 30 CAGR 2007-2014 >15% 25 25 Until 2014, 16 new therapeutic MAbs are 20 20 expected to receive FDA approval 15 15 Market leade
Slide 10: World Vaccine Market
World Vaccine Market Total Sales in Billions of US$ CAGR 2007-2013 >14% to approx. US$36bn 35 Rapid growth in the segments of flu and 30 cancer vaccines 25 Due to the need for aseptic processes and 20 short lead times, single-use products are beneficial for all production steps 15 10 5 0 2005
Slide 11: Increasing Penetration of Single-Use Products in Biomanufacturing
Increasing Penetration of Single-Use Products in Biomanufacturing 100% Within the installed processes, in total single-use products are only used in about 10%-20% of the potential applications The actual use of disposables differs widely from lower (e.g. disposable bioreactors) to high percentag
Slide 12: Market Overview
Market Overview Filters Bioreactors Fluid Membrane management chromatography Market size ~750 Mio. € ~300 Mio. € ~200 Mio. € ~100 Mio. € Single to Market growth Double-digit Double-digit Double-digit double-digit Market position Among the top 3 Market leader Market leader Market leader NBS, Applikon
Slide 13: Complete Product Portfolio Along BioPharma´s Process Chain
Complete Product Portfolio Along BioPharma´s Process Chain Fermentation Initial Recovery Purification Form and Fill Bags for storage & transport, freeze thaw Multi-use Depth filters for Buffer and Filtration bioreactors cell removal & product bags Product bags Single-use clarification
Slide 14: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Financials and Outlook 2008 • Appendix
Slide 15: Global Full-Liner of Weighing Equipment and Control Technology
Global Full-Liner of Weighing Equipment and Control Technology Full range of products for laboratory and industrial applications Complete product pyramid from premium to standard segment Global sales and service structure Production base in Europe, Asia, USA page 15
Slide 16: Market Overview
Market Overview Laboratory business Industrial business Market size €300mn – 400mn €1.5bn - 2.0bn Market growth ~ 2% - 3% ~ 5% Market share ~ 30% ~ 5% Economies of scale Moderate Significant Main competitor Mettler Toledo (~40%) Mettler Toledo (~20%) Source: own estimates; in our specific market seg
Slide 17: Market Trends
Market Trends Increasing demand for improvement in production efficiency and safety - Shifting of quality control from laboratory to assembly line - Integration of weighing and control technology into production processes Growing demand in emerging markets page 17
Slide 18: Asia is the Main Growth Driver for the Industrial Business
Asia is the Main Growth Driver for the Industrial Business Strongest growing single market Highest potential for additional market share Thus, highest potential for economies of scale Production and Sales facilities sales facilities page 18
Slide 19: Complete Product Portfolio For Labs and Industrial Applications
Complete Product Portfolio For Labs and Industrial Applications Incoming Quality Packaging & R&D Labs Goods Assurance Final Check One-stop standard products and customer solutions Addressing key trends in growing industries Strong global presence; modular production and supply chain concept pa
Slide 20: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Financials and Outlook 2008 • Appendix
Slide 21: General Information
General Information To provide complete and transparent information, we compare nine-month 2008 figures with pro forma nine month 2007 figures adjusted for non-operating and other non- permanent effects (= underlying). The pro forma presentation means that the figures include former Stedim busin
Slide 22: Sales Revenue by Division for 9-Months 2008
Sales Revenue by Division for 9-Months 2008 Currency adjusted | In Millions of Euro +2.8% Actual fx: 450 Group: €453.4mn; -1.2% 400 +1.0% Biotechnology Division: €273.3mn; -3.0% 350 300 Mechatronics Division: €180.0mn; +1.7% 250 Biotechnology Division: 200 Persistently difficult market envir
Slide 23: Sales Revenue by Region for 9-Months 2008 – Biotechnology
Sales Revenue by Region for 9-Months 2008 – Biotechnology Currency adjusted | In Millions of Euro +6.5% Actual fx: Europe: €168.3mn; +4.9% 150 North America: €59.5mn; -20.6% Asia | Pacific: €36.7mn; -2.0% 100 Other Markets: €8.8mn; -1.6% -10.4% +0.8% 50 -1.3% 0 Europe North Asia | Other Amer
Slide 24: Sales Revenue by Region for 9-Months 2008 – Mechatronics
Sales Revenue by Region for 9-Months 2008 – Mechatronics Currency adjusted | In Millions of Euro +6.4% Actual fx: 100 Europe: €106.6mn; +4.9% North America: €24.9mn; -11.8% 80 Asia | Pacific: €41.3mn; +2.3% 60 Other Markets: €7.2mn; +6.2% +6.9% 40 -0.3% +7.7% 20 0 Europe North Asia | Other A
Slide 25: EBITA for 9-Months 2008
EBITA for 9-Months 2008 In Millions of Euro 46.9 EBITA margin: -13.6% 40.6 Group: 8.9% 40 At the previous year‘s exchange rates, EBITA margin at between 9.5% and 10.0% 30 35.2 -17.2% 29.1 Biotechnology: 10.7% Lower than expected sales revenue and 20 exchange rates weighed down on profitability O
Slide 26: Earnings per Share for 9-Months 2008
Earnings per Share for 9-Months 2008 In Euro Besides the lower EBITA, EPS have been -27.8% 1.0 especially affected by higher interest base rate (Euribor) 1.11 0.5 0.80 0.0 9 months 2007* 9 months 2008** * Pro forma underlying excluding amortization ** Excluding amortization and interest expenses f
Slide 27: Balance Sheet as of September 30, 2008
Balance Sheet as of September 30, 2008 Assets Equity and Liabilities Non-current assets €559.6mn 65.8% Equity €331.5mn 39.0% Current assets €291.5mn 34.2% Financial debt €245.3mn 28.8% Non-financial debt €274.3mn 32.2% Total €851.1mn 100% Total €851.1mn 100% Ratio of net debt to EBITDA: 2.4 Gear
Slide 28: Outlook 2008
Outlook 2008 Accurate and reliable quantitative forecast for the fourth quarter not possible due to turbulent market conditions Full year targets, announced at the end of the first half, not expected to be achieved The overall stable development – but lower than initially planned - expected to
Slide 29: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Key Financials and Outlook • Appendix
Slide 30: Financial Key Figures
Financial Key Figures 9 months 2008 9 months 2007 Growth pro forma (currency adjusted) Sales revenue 453.4 458.8 +2.8% in millions of € Total Group EBITA margin 8.9 10.2* in % Sales revenue 273.3 281.8 +1.0% in millions of € Biotechnology EBITA margin 10.7 12.5* in % Sales revenue 180.0 177.0 +5.5%
Slide 31: Cash Flow Statement
Cash Flow Statement In Millions of Euro 9 months 2008 9 months 2007 Cash earnings 40.7 42.3 Cash flow from working capital -25.4 -21.2 Cash flow from investing activities -22.3 -119.7 Net cash flow -6.9 -97.3 Cash flow from working capital influenced by increased inventories in connection with new
Slide 32: Facts about Sartorius Shares – Shareholding Structure
Facts about Sartorius Shares – Shareholding Structure Ordinary share Preference share 8,9 9 9 Administered by executor 50,1 Family owned 25 Bio-Rad Laboratories Inc. Free float 7 Own shares 91 ISIN Ordinary share: DE0007165607; preference share: DE0007165631 Market segment Prime Standard (technology
Slide 33: Global Presence
Global Presence Production and sales facilities Sales facilities page 33
Slide 34: Financial Calendar
Financial Calendar November 12, 2008 Company presentation at the Equity Forum Fall 2008 in Frankfurt|Main, Germany January 19–21, 2009 Company presentation at the 8th Cheuvreux Corporate Conference in Frankfurt|Main, Germany March 2009 Annual press conference in Goettingen, Germany April 23,
Slide 35: Contacs
Contacs Andreas Wiederhold Henriette Meyer Treasury & Investor Relations Treasury & Investor Relations Phone: +49.551.308.1668 Phone: +49.551.308.3232 Fax: +49.551.308.3153 Fax: +49.551.308.3153 E-mail: andreas.wiederhold@sartorius.com E-mail: henriette.meyer@sartorius.com Sartorius Corporate Admini
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