Gerresheimer Ag · XETR:GXI
Gerresheimer — Investor Day (October 2008)
35 slides from Gerresheimer's investor day presentation, Oct 23, 2008
Slide 1: Excellent prospects as a unique supplier to the Pharma & Life Science Industry
Gerresheimer: Excellent prospects as a unique supplier to the Pharma & Life Science Industry Gerresheimer Capital Markets Day October 23+24, 2008 Dr. Axel Herberg, CEO 0
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 Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 2
Slide 4: Gerresheimer's strategy
Gerresheimer’s strategy Targeted investments in growing segments Organic Continuous productivity and quality improvement growth Further capitalize on leading Pharma & market positions Life Science Global market leadership Extension of product Growth positions offerings/technology through Extension o
Slide 5: Agenda
Agenda Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 4
Slide 6: The pharma market continues to be attractive due to solid fundamental growth drivers
The pharma market continues to be attractive due to solid fundamental growth drivers - Pharmaceutical sales 2008 - USD 725bn Key growth drivers ROW Growing and aging population Expanded access to healthcare, BRIC 120 especially in emerging countries 50 315 North America Drug innovation Japan 60 New
Slide 7: Four selected trends in the Pharma Industry and the consequences for Gerresheimer
Four selected trends in the Pharma Industry and the consequences for Gerresheimer 1 Different speeds of growth in various regions of the world 2 Different size and growth rates of disease patterns 3 Trend to genericization 4 Strong market growth in biotech products 6
Slide 8: North America and Europe remain most important markets; strongest growth lies in emerging countries
1 Different speeds of growth in various regions of the world North America and Europe remain most important markets; strongest growth lies in emerging countries - EUR bn - - Pharmaceutical sales: Market sizes and growth rates 2008 - Europe North America 200 BRIC 315 4-5% Japan 12-13% 4-5% 50 1-2% 60
Slide 9: Despite strong growth in the BRIC region North America and Europe will remain the most important markets
Despite strong growth in the BRIC region North America and Europe will remain the most important markets - USD bn - - Absolute market growth by region - North America 14 Europe 9 BRIC 6 Japan 1 Source: IMS, Health, Market Prognosis Sep 2007 8
Slide 10: North America and Europe are the most demanding markets for their suppliers
1 Different speeds of growth in various regions of the world North America and Europe are the most demanding markets for their suppliers Market trends New sophisticated therapies with specialized packaging needs Upgraded government standards regarding safety, unit dose, quality and anti-counterfeit
Slide 11: Gerresheimer presence in largest and strongest growing BRIC-country China
1 Different speeds of growth in various regions of the world Gerresheimer presence in largest and strongest growing BRIC-country China - Pharmaceutical market growth rates in BRIC-countries - 13% 9% 8% 6% China India Brasil Russia Market size (EUR bn) 33 8 6 4 Market trends Extensive programs to upg
Slide 12: Gerresheimer is present both in the big markets as well as in the fast-growing regions
1 Different speeds of growth in various regions of the world Gerresheimer is present both in the big markets as well as in the fast-growing regions Region Plants Employees Europe 20 5,802 Americas 14 3,171 Asia 6 1,325 Total 40 10,298 As of August 31, 2008 Headquarters Tubular Glass Plastic Systems
Slide 13: Different size and growth rates of disease patterns
2 Different size and growth rates of disease patterns GX supplies packaging solutions for all kinds of drugs; however, the growing respiratory and diabetes markets are of particular interest $36 Oncologics $30 2007(e) MARKET SIZE, USD bn Lipid regulators $24 PPIs Asthma/COPD Anti- Anti-diabetes $18
Slide 14: North & South America as well as Australia show a particularly high prevalence of clinical asthma
2 Different size and growth rates of disease patterns North & South America as well as Australia show a particularly high prevalence of clinical asthma % of population with asthma >10% 7.6-10% 5.1-7.5% 2.5-5.0% 0-2.5% No standardized data Source : LEK study 2007 13
Slide 15: Asthma and COPD patient numbers are important demand drivers
2 Different size and growth rates of disease patterns Asthma and COPD patient numbers are important demand drivers Treated Asthma and COPD patients in the US, Europe and Japan (2002-11e) Million Prevalence of asthma is expected 75 to continue to increase worldwide Total Increasing air pollution Here
Slide 16: Market growth for Inhalation driven by strong growth of Dry Powder Inhalers
2 Different size and growth rates of disease patterns Market growth for Inhalation driven by strong growth of Dry Powder Inhalers (DPI) Worldwide Inhaler market by type (2002-2011e) 100 DPI's 75 Advantages of Dry Powder Inhalers: DPI's are easier to use (breath actuation) 50 Precise dosage to the lu
Slide 17: Strongest prevalence of diabetes in North America and Europe
2 Different size and growth rates of disease patterns Strongest prevalence of diabetes in North America and Europe - Prevalence of diabetes worldwide in % of adult population in 20031- 7.9 7.8 7.0 5.1 5.0 3.9 2.8 World North Europe Middle East South Asia Pacific China America America 1 Refers to pop
Slide 18: Facts Diabetes
2 Different size and growth rates of disease patterns Facts Diabetes Background Background diabetes diabetes disease disease Number Number of of persons persons concerned concerned will will increase increase globally globally to to 350m 350m until until 2025 2025 50% 50% of of people people with wi
Slide 19: Gerresheimer is the only Pharma & Life Science supplier to offer a broad range of diabetes products
2 Different size and growth rates of disease patterns Gerresheimer is the only Pharma & Life Science supplier to offer a broad range of diabetes products Anti-diabetes products of Gerresheimer Lancets and Vials and Pens lancing cartridges devices GXI Tubular Plastic Plastic Division Glass Systems Sy
Slide 20: Generics outgrow original brands
3 Trend to genericization Generics outgrow original brands Sales - USD bn - 60 14% 50 12% 10% 40 8% 30 6% 20 4% 10 2% 0 0% 2002 2003 2004 2005 2006 2007 Top 8 market generic sales Original brand growth Source: IMS Health: MIDAS; therapy Forecaster, IMS Consulting Sep 2007 19
Slide 21: So far, generics have not gained much ground in injectable drugs, but this trend is changing
3 Trend to genericization So far, generics have not gained much ground in injectable drugs, but this trend is changing - Global Generics Blockbuster Sales (USD) – 100% 90% Injectables 80% 70% 60% 50% 40% Oral 30% applications 20% 10% 0% 2000-04 2005-11 Over 2011 Volume growth driver for Tubular Glas
Slide 22: More and more Blockbuster drugs are based on biotech products
4 Strong growth in biotech products More and more Blockbuster drugs are based on biotech products - Number of Blockbuster Products – Total 106 100 90 Biotech 80 70 60 Total 50 39 40 Other 30 20 10 0 2000 2002 2004 2006 2007 Source: IMS, Health, MIDAS, MAT Dec. 2007 21
Slide 23: Many biotech drugs are filled in prefillable syringes and vials
4 Strong growth in biotech products Many biotech drugs are filled in prefillable syringes and vials – An opportunity for Gerresheimer 22 Biotech Blockbusters Dosage form Vial Pref. Syringes Enbrel (Amgen/Wyeth) ! ! Aranesp (Amgen) ! ! Remicade (J&J/SP) ! Mabthera/Rituxan (Roche) ! Neulasta (Amgen) !
Slide 24: Agenda
Agenda Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 23
Slide 25: Understanding the four aspects of the Pharma Industry
Understanding the four aspects of the Pharma Industry Regulation/Quality Production Procurement R&D and Marketing Product Quality Quality Sales / Registration Production Purchasing Planning Logistics Manage- R&D Assurance Control Marketing ment Comply with Efficiency and New product requirements reg
Slide 26: Product quality requirements are permanently raised
Product quality requirements are permanently raised Regulatory Regulatory environment environment Registration Registration –– Primary Primary packaging packaging isis key key element element ofof drug drug registration registration –– Standards Standards must must be be fulfilled fulfilled to to ob
Slide 27: Gerresheimer selects the marketing approach based on the specific needs of the customer
Gerresheimer selects the marketing approach based on the specific needs of the customer - Distribution of pharmaceutical sales 2008 – 63% 56% 45% 37% 27% Top Top Top Top # 21 – 5 10 15 20 ~14000 Pharma companies Key account Approach by local sales approach force or distributor 26
Slide 28: Customers have different decision makers and levels depending on the topic
Customers have different decision makers and levels depending on the topic Decision level Local Global Production Contracts Quality New products 27
Slide 29: Gerresheimer well positioned as a global partner to the Pharma & Life Science Industry
Gerresheimer well positioned as a global partner to the Pharma & Life Science Industry Gerresheimer Gerresheimer seen seen as as aa strategic strategic global global partner partner by by the the large large pharma pharma companies companies Involvement Involvement ofof higher higher level level man
Slide 30: Agenda
Agenda Introduction Trends in the Pharma Industry Understanding the Pharma Industry Gerresheimer's approach to the customer 29
Slide 31: Management organization of Gerresheimer is characterized by full divisional P&L responsibilities
Management organization of Gerresheimer is characterized by full divisional P&L responsibilities and a small central staff Dr. Axel Herberg (CEO) Hans-Jürgen Wiecha (CFO) Uwe Röhrhoff Dr. Max Raster Controlling Finance Gerresheimer Key Legal Investor Management Account HR Relations System Management
Slide 32: How do we manage our business?
How do we manage our business? Divisional Divisional tasks tasks Full Full P&L P&L responsibility responsibility with with strong strong customer customer and and earnings earnings focus focus Strategic Strategic expansion expansion (embedded (embedded in in Group Group strategy) strategy) Technical
Slide 33: Different key success factors are important for the P&L management in our four divisions
Different key success factors are important for the P&L management in our four divisions - Key earnings levers by division - Tubular Glass Plastic Systems Medical Tubular Plastic Moulded Life Science Tubing Plastic Converting Packaging Glass Research Systems Yield X X X X X Utilization X X X X Mix M
Slide 34: Integrated technology approach through Technical Competence Centers
Integrated technology approach through Technical Competence Centers Tubular Tubular Glass: Glass: –– Vineland, Vineland, US: US: Tubing Tubing –– Bünde, Bünde, Germany: Germany: Syringes Syringes –– Wertheim, Wertheim, Germany: Germany: Ampoules Ampoules –– Morganton, Morganton, US: US: Vials Vials
Slide 35: Gerresheimer – Excellent prospects as a unique supplier to the Pharma & Life Science Industry
Gerresheimer – Excellent prospects as a unique supplier to the Pharma & Life Science Industry Clearly Clearly defined defined strategy strategy Stable, Stable, non-cyclical non-cyclical growth growth Multiple Multiple external external expansion expansion possibilities possibilities Global Global an