Sartorius AG · XETR:SRT
Sartorius — Cheuvreux 10th German Corporate Conference 2011
34 slides from Sartorius's conference presentation, Jan 17, 2011
Slide 1: Cheuvreux 10th German Corporate Conference 2011
Platzhalter Bild Cheuvreux 10th German Corporate Conference 2011 Frankfurt | Main; January 17, 2011
Slide 2: Disclaimer
Disclaimer This presentation contains statements concerning the Sartorius Groups’ 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 • Current Initiatives • Financial Performance • Appendix
Slide 4: Sartorius Runs Two Divisions
Sartorius Runs Two Divisions Sartorius AG Other Shareholders 100% approx. 75%* approx. 25%* Sartorius Sartorius Stedim Mechatronics Biotech (SSB) (listed in Paris) * of outstanding shares page 4
Slide 5: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Current Initiatives • Financial Performance • Appendix
Slide 6: Total Solution Provider for the Biopharmaceutical Industry
Total Solution Provider for the Biopharmaceutical Industry • We help our customers to produce biopharmaceuticals in short time, reliably and safely, at low costs, and with high flexibility • Most complete product and service portfolio along the biotech industry’s process chain • Focus on single-use
Slide 7: Most Complete Product Portfolio Along Biopharma's Process Chain
Most Complete Product Portfolio Along Biopharma´s Process Chain Media Preparation Fermentation Value Added Services Buffer Preparation Cell Harvesting Purification page 7
Slide 8: Strong Long Term Trends Drive Further Growth
Strong Long Term Trends Drive Further Growth Global Trends • Aging population in western countries Pharma Market • Hundreds of million + • Average growth 4-7% p.a. additional patients in developing economies + Trends towards Biotech • Diseases of civilization Biopharma Market • MAbs + vaccines domin
Slide 9: Increasing Pressure on Bio-Manufacturing Costs
Increasing Pressure on Bio-Manufacturing Costs* CoS by Category CoS by Unit Operation 12% 1% 3% 3% 3% 4% 7% 6% 48% 9% 25% 2% 44% 15% 8% 3% 7% Capital Charge 20L Seed Bioreactor Huge potential for 200L Seed Bioreactor Materials single-use techno- 2000L Production Bioreactor Consumables logies, especi
Slide 10: Single-use Technologies Will Become the Future Industry Standard
Single-use Technologies Will Become the Future Industry Standard + CAPEX reduction Market Penetration of Single-use Products in Potential Applications + Reduced cleaning costs | validation 100% + Downtime reduction, i.e. higher equipment utilization + Enhanced process performance = Reduction of life
Slide 11: Growth of Single-use Products Drives SSB's Margins Up
Growth of Single-use Products Drives SSB´s Margins Up Underlying EBITA Margin • Incremental gross margins of single-use 16% ~16% products up to 80% and more 14% 15.0% • EBITA margin of sales increase 2007 - 2010 12% approx. 35% 13.2% 10% 10.9% 8% 6% 4% 2% 0% 2007* 2008 2009 2010e * pro forma page 11
Slide 12: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Current Initiatives • Financial Performance • Appendix
Slide 13: Strong Market Position of Lab Instruments Business
Strong Market Position of Lab Instruments Business • Global No. 2 • Complete product pyramid from premium to standard segment • Top technology and high quality products • Global sales and service organization • Broad customer base with focus on pharma | biopharma, food and academia page 13
Slide 14: Global Full-Liner of Industrial Weighing Equipment
Global Full-Liner of Industrial Weighing Equipment • Broad product portfolio from platform scales to checkweigher and tank & hopper solutions • High product quality and healthy gross margins • But relatively low market share in most geographies page 14
Slide 15: Mechatronics business strongly recovered in 2010
Mechatronics business strongly recovered in 2010 In millions of € +14.1%1) +8.5%1) • Strong recovery in both, lab and industry, in 175 all regions 150 • With significantly reduced breakeven point back in robust profitability 125 • Process of strategic re-positioning ongoing 100 177.4 163.6 75 151.4
Slide 16: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Current Initiatives • Financial Performance • Appendix
Slide 17: Further Strengthening of Global Sales & Marketing Organization
Further Strengthening of Global Sales & Marketing Organization Sales distribution in % of total ~40% ~85% ~€430mn ~15% ~60% ~€225mn Bioprocess Lab Instruments Biolab Industrial Weighing Implementation of cross-divisional Sales & Marketing responsibility for laboratory business Independent organi
Slide 18: Consolidation of Production Sites for Future Growth of Biotech Division
Consolidation of Production Sites for Future Growth of Biotech Division • Consolidation of core competencies at dedicated sites (e.g. injection molding) • Membrane capacity expansion at headquarter in Germany • New site for equipment business in Germany • Concentration of U.S. production activities
Slide 19: Business Process Re-engineering
Business Process Re-engineering • Business processes have been standardized and streamlined on a global basis for future growth and strategic steps • ERP re-engineering started beginning of 2011 to optimally support the business processes page 19
Slide 20: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Current Initiatives • Financial Performance • Appendix
Slide 21: Sartorius Group's Performance within the first 9 Months 2010
Sartorius Group’s Performance within the first 9 Months 2010 In millions of €, unless otherwise specified 9-month 2010 9-month 2009 Order Intake (currency adj. growth) 508.3 (+9.0%) 454.8 Sales Revenue (currency adj. growth) 482.3 (+5.9%) 444.7 Underlying* EBITA (Margin) 58.9 (12.2%) 43.9 (9.9%) Und
Slide 22: Considerable Increase in Order Intake
Considerable Increase in Order Intake In millions of € +11.8% 454.8 508.3 Currency-Adjusted Growth: 500 • Group: +9.0% 450 400 • Biotechnology: +6.4% +9.1% 330.9 350 • Mechatronics: +14.1% 300 303.4 Biotechnology: 250 • Double-digit growth rates with single-use 200 products in Asia | Pacific and Nor
Slide 23: Sales Revenue Growth Reported by Both Divisions
Sales Revenue Growth Reported by Both Divisions In millions of € +8.5% 482.3 Currency-Adjusted Growth: 444.7 450 • Group: +5.9% 400 • Biotechnology: +4.6% +7.0% 318.8 350 • Mechatronics : +8.5% 300 298.0 250 Biotechnology: 200 • Equipment orders are partly not yet reflected 150 +11.4% by sales reven
Slide 24: Sales Revenue by Region – Biotechnology
Sales Revenue by Region – Biotechnology According to customers’ location in millions of € -2.2%1) • Excluding one-time H1N1 vaccines effect in 2009 approx. 2% growth +13.0%1) +17.6%1) Europe 9-month 9-month Growth 2010 2009 North America 9-month 9-month €169.7mn €172.9mn -1.8% Growth 2010 2009 Asia
Slide 25: Sales Revenue by Region – Mechatronics
Sales Revenue by Region – Mechatronics According to customers’ location +7.3%1) in millions of € +5.7%1) +10.4%1) North America Europe 9-month 9-month Growth 9-month 9-month Growth 2010 2009 2010 2009 €24.3mn €22.2mn +9.7% €86.9mn €80.6mn +7.8% Asia | Pacific 9-month 9-month Growth +26.1%1) 2010 200
Slide 26: Underlying EBITA
Underlying* EBITA In millions of € 58.9 +34.1% 55 Underlying* EBITA Margin: 50 43.9 • Group: 12.2% (prev. year: 9.9%) 45 • Biotechnology: 15.7% (prev. year: 15.5%) 40 +8.1% 50.1 • Mechatronics: 5.4% (prev. year: -1.6%) 35 30 46.3 • Positive development mainly due to profitable 25 growth in both divi
Slide 27: Underlying Earnings per Share Strongly Increased
Underlying* Earnings per Share Strongly Increased In € • Underlying* net profit after minority interest: 1,50 1.50 €26.4mn (prev. year: €13.9mn) +90.8% • Unadjusted net profit after minority interest: 1,25 1.25 €20.3mn (previous year: -€7.0mn) 1,00 1.00 0,75 0.75 1.55 0,50 0.50 0.81 0.25 0,25 0,000
Slide 28: Key Financial Figures
Key Financial Figures Sept. 30, 2010 Dec. 31, 2009 Equity Ratio 38.7% 38.9% Net Debt (in millions of €) 226.3 224.7 Gearing 0.7 0.7 Net Debt to Underlying* EBITDA 2.3 2.6 Interest Coverage 13.8 8.6 • Even though we implemented the share buyback program for SSB S.A. in Q2, the equity ratio and net de
Slide 29: Outlook 2010
Outlook 2010 Sales Growth Underlying EBITA Margin (currency-adj.) Improvement of around Sartorius Group Slightly above 5% 2.5 percentage points Biotechnology Around 5% Around 16% Mechatronics Around 7% Around 6% • Management further forecasts a significantly positive operating cash flow. page 29
Slide 30: Agenda
Agenda • Company Profile • Biotechnology Division Platzhalter Bild • Mechatronics Division • Current Initiatives • Financial Performance • Appendix
Slide 31: Strong Global Presence
Strong Global Presence Sales Production | Production and Sales page 31
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: Financial Calendar
Financial Calendar • February 2011* Publication of preliminary full-year figures for 2010 • March 2011 Annual press conference in Goettingen, Germany • April 20, 2011 Annual Shareholders' Meeting in Goettingen, Germany * Tentative date page 33
Slide 34: Contacts
Contacts Andreas Wiederhold Henriette Meyer Team Leader 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 Cor
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